Aviation Industry Corporation of China
Address: AVIC Plaza, No.128, Jianguo Road, Chaoyang District, Beijing City Postcode: 100022 Tel.: 010-58356041 Fax: 010-58356979 E-mail: [email protected] Wechat: AVIC-2008 Micro-blog: AVIC mic
with us
Social Responsibility Report 2014
AVIC official wechat Wechat: AVIC-2008 Social Responsibility Report 2014
AVIC official website AVIC official micro-blog http://www.avic.com.cn/ http://weibo.com/u/3061210763
This report is prepared in green environmental hard copy and electronic copy
AVIC Together with the motherland Together with the world Together with us ……
Social Responsibility Report 2014 Content
About Us 04
AVIC Ecological Map 06
Speech of Chairman 08 AVIC in the Blue Sky AVIC around Us AVIC with Safety First Self-disciplined and Green development of the AVIC moving toward the The sound of reading in Speech of General 09 Responsible AVIC AVIC world the mountains Manager (special topic) (special topic)
Implementation and 10 Management of Responsibility 18 26 36 44 52 58 68
Retrospect and Prospect 74 Eagles soar in the cloud, People know you well around AVIC in pursuit of safety Law-abiding and self- Construction of environmental AVIC over the seas “Blue Chalk” of the teacher cruising for peace the world as a neighborhood 37 disciplined, innovative and management system 59 recruitment and supporting Appendix 76 19 28 progressive 53 education 45 69 About the Report 85 Doves flutter in the sky, It lies in the life instead up in AVIC manufacture focusing on spreading wings for the clouds quality Care for employee, pay back Development of low-carbon Localized business philosophy Sponsorship and Assistance – development 32 40 the society ecological industry 62 “Parents’ Love” 21 48 54 70
Carry out energy conservation To be a friendly and sincere and consumption reduction international citizen action 64 56 About UsUs 04 05
An independent Aviation Industry Corporation of China (referred AVIC owns subsidiaries (branches) distributed and integrated to as “AVIC”) is an aviation-oriented corporation, in more than 30 provinces and cities, and 182 who can provide complete services to customers overseas agencies, offering products and service AVIC Aeronautic Equipment Co., Ltd. China aviation General Administration Department manufacturing in many fields – from research and development for both military and civil fields for the customers in to operation, manufacturing and financing. Its China, as well as in over 180 countries and regions AVIC Aircraft Co., Ltd. system Strategy and Capital predecessor was founded in 1951 and the Aviation of Asia Pacific, Europe and the United States, and Management Department AVIC Engine Co., Ltd. Industry Corporation of China (AVIC) was founded Africa. Since our establishment in 2008, we have One of the on November 6, 2008 through the restructuring continuously achieved double-digit annual growth. Finance & Planning Department AVIC Copter Co., Ltd. World Top 500 and consolidation of the China Aviation Industry Multi-National Human Resources Department Corporation I (AVIC I) and the China Aviation Industry AVIC, always promise to “serve our country with China Avionics Systems Co., Ltd. Corporations Corporation II (AVIC II). The headquarter of the aviation, build a strong army and enrich people”, fulfill Defense Engineering Department corporation is located in Beijing, where we have the idea of “respect and honesty to work, innovation AVIC Electromechanical Systems Co., Ltd. segments of aviation equipment, transport aircraft, and surpass”, and have proposed a development The guardians Department of Science, of sky and engines, helicopter, avionics and systems, general strategy of “Two integrations, three innovations, five Technology and Informatization China Aviation Industry General Aircraft Co., Ltd. peace aircraft, research and development, flight testing, upgrades and one Trillion”. “Two integrations” means trade and logistics, assets management, engineering that we need get rid of the old conservative thinking, Department of International Affairs AVIC Asset Management Co., Ltd. and construction, automobiles and more. We have instead, form a new idea of opening and cooperation The neighbour Quality & Safety China National Aero-technology International over 200 subsidiaries, 29 listed companies, and so as to achieve integration into both the global around us Management Department Holding Corporation about 550, 000 employees. In 2014, AVIC ranked aviation industry chain and regional development Aviation Industry 178th among the Fortune Top 500 enterprises for the economic circles; “Three innovations” refers to the Corporation of China Flying dreams, Policy and Legal Affairs Department AVIC Technology Foundation Establishment sixth time. Group’s core competitiveness. We are committed our Chinese to transforming and upgrading the Group’s core dreams Party-building and Ideological AVIC Economy Establishment In addition to the research and development of competitiveness, moving from “the traditional triad and Political Department advanced aviation weapon equipment, AVIC is of capital, technology, and management” to the Chinese Flight Test Establishment committed to developing civil transport industry, new trinity of “brand value, business model, and Audit Department actively is engaged in the development of major integrated networking”; “Five upgrades” means AVIC Capital Co., Ltd. international aviation projects, and vigorously that we vigorously promote market-oriented reform, Disciplinary Inspection and Supervision Department develops the aviation subcontract businesses. industry sector consolidation, capitalized operations, AVIC Automobile Industry Holding Co., Ltd. international exploitation, and industrial development. Non-aero Business Department In respect of non-aviation industry, AVIC has In the end, we strive for a challenging sales target of China Aviation Planning and Construction Development Co., Ltd. integrated high-end aviation science and technology RMB one trillion. Civil Aircraft Projects Department into mechanical equipment, spare parts of AVIC Commercial Aircraft Engine Co., Ltd. automobiles, new energy vehicles and other fields. Engine Project Department We have vigorously developed products, such China National Aero-Technology as gas turbine, electrical devices, refrigeration Department of Retired Employee Import & Export Corporation equipment, environmental protection equipment, new energy equipment. Meanwhile, we provide Joy Air Holding Co., Ltd. various services, including general aviation, aircraft leasing, transportation, medical service, planning and AVIC Heavy Machinery Co., Ltd. construction and etc. AVIC Ecological Map 06 07
天虹
三六一医院 Speech of Chairman
As one of the important industries and key fields of the national security and the national economy lifelines, AVIC is an important part of the national strategic industry and the national innovation system. Our mission is to serve the security of national defense and economic development.. We are always adhering to be a responsible corporate citizenship, which is an eternal pursuit in our heart. After more than 60 years of vicissitudes, AVIC has gradually grown into a large-sized transnational enterprise that is faithful, willing to bear and responsible, and has grown into a multinational corporation with a 90.5-billion-Yuan brand value breakthrough and the 178th ranking on the Fortune 500.
AVIC always regards ‘serve our country with aviation’ as its core responsibility; adheres to military-oriented strategy, while supplying munitions with high quality and efficiency, and guaranteeing military aircraft both are our core; We actively adapt to the military situation and the demand of aviation weapon equipment, then make research, design, and manufacture the aviation defense equipment. As a result, we have made important contributions to increasing military air combat ability, strengthening national defense, and safeguarding national security and economic interests.
AVIC always regards civil-military integration as its historical mission. We stick to the idea of “civil-military integration”, develop civil aviation chain in multiple dimension. Also, we devoted to promoting the development of general aviation, and serving people better. We vigorously promote civil aviation to an international level, and then integrate it into the global aviation industry chain, in order to build an image of aviation global power of the east. By focusing on the group development strategy, we have integrated into the local economic circle to stimulate its development.
AVIC always pursues undertaking social responsibilities. By sticking to the idea of “green development and harmonious development”, we actively promote the “green manufacturing”. In order to build a green aviation industry chain, we apply to green production and insist on green office. Besides, we secure the consciousness of safe production, integrate the idea of “safety is higher than the heaven, responsibility is weightier than the mountain” into the whole process of production and operation. Insisted on “quality first, quality foremost, quality oriented”, we strengthen the quality management. Insisted on the idea of “develop relying on employees, develop for employees, all the employees share the fruit of our development”, we truly become a people-oriented corporation and develop harmoniously. We always integrate corporate social ability into our own development, put it on our shoulders, and give back to the public with our industry superiority.
Say goodbye to 2014, and Outlook 2015. As the core power of national strategic industry and national defense science & technology industry, AVIC will always keep in mind the sacred mission of ‘serve our country with aviation, build a strong army and enrich people’, provide products and service with high-quality, increase the quality and efficiency of development, promote common development for both corporation and employee, promote the harmonious development of economy and environment, build a social responsibility management system, and take a good responsibility of economy, society and environment. In the end, we will forge a new chapter of development with interest related ones.
Lin Zuoming June, 2015 Speech of General Manager 08 09
AVIC continued to seek for peaceful development, guarantee national defense security and pay attention to national economy and the people’s livelihood in the past year, and made great contributions to safeguarding national security, stimulating economic development, and promoting the progress of science and technology.
In 2014, AVIC made full strength to promote reform, conducted various kinds of task deeply, and carried out the “year of reform and management” activity in a deep-going way, each work obtained new achievements. In the circumstances of facing growing downward pressure of economy, AVIC achieved a contrarian growth. Our annual business income is RMB386.38 billion yuan, with year-on- year growth of 11%. Moreover, we ranked 178th among the Fortune Top 500 enterprises, moving up 34th compared to that in the last year, with a 90.5-billion- Yuan brand value breakthrough, ranking 25th in the whole country.
As a company driven by aviation, AVIC offers the whole value chain services in many fields. In 2014, more than 150 products of AVIC appeared in public at Zhuhai Airshow, which was a milestone of the development of Chinese civil aviation industry and had changed the world’s attitude to Chinese aviation manufacturing. Meanwhile, we had seized the opportunity of revolution on values. Through the development of creative economy, we had achieved the “spillover effect” in the aviation industry, promoting the upgrade and growth of non-aeronautical civil industries and modern service industry.
AVIC has made more efforts to carry out the innovation-oriented strategy, acquiring new accomplishments in technological innovation. In 2014, we had acquired 4 National Science & Technology Awards and 86 National Defense Science & Technology Awards. We had applied for 6970 patents. AVIC had constructed the innovation system step by step and built 39 key laboratories of aviation technology. We had promoted the combination of informationization and industrialization in depth and integrated the internal IT infrastructure. We had established an Experience Innovation Center of a deep integration between informationization and industrialization and an R&D base of the industrial software of the deep integration.
AVIC has taken the initiative to execute the conception of low carbon and healthy development. Taking the resource conservation and the increase of efficiency in utilizing resources as the core, we have strengthened the management of energy saving and emission reduction. We have strived to make mutual benefits for interested parties with the innovation system and mechanism.
AVIC has recruited a large number of talents, providing many job opportunities to the society. AVIC attracts more than 500,000 people around the world. The number of the newly recruited university students is more than 12,000 annually even just in China. AVIC has always regarding the overall management of the employee as the way of enterprise development. In AVIC, technical and managerial talents who have outstanding performance will get the chance to study and get further education overseas. Every year, AVIC funds excellent employees to study for a degree or accept further education in foreign reputable universities. Those returned doctors, masters and exchange scholars are becoming the backbone of AVIC.
AVIC seeks to deepen reform unswervingly. We focus on carrying forward the spirit of entrepreneur, carrying out reformation in a complete and thorough way. As a result, we will seek for the “new bonus” of this deepen reform. With the continuous development of AVIC, we should and will pay more attention to maintaining employee interests, undertake public utilities actively, and participate in social management. Besides, we will save energy and reduce consumption, protect the environment, be a public-spirited enterprise who would support the distressed people, and devote ourselves to the social development.
Tan Ruisong June, 2015 Implementation and Management of Responsibility 10 11
Model of Concept of Social Responsibility Our Governance Board of Directors of the Group It is AVIC’s concept of social responsibility that “take heart as wing to fly with dream”. Here, heart means “loving heart”, and wing means Management Organization of “aerofoil”. Taking loving heart as its aerofoil, AVIC will definitely have a bright future, with ideals and dreams flying the blue sky. Social Responsibility
The model refers to the cross-section shape of aircraft engine, meaning that AVIC will realize the sustainable development under the AVIC has established the management organizations Strategy and Nominating and Remuneration Audit and Risk Corporate promotion of strong power, thus it will surely take and fulfill the corresponding social responsibility, so, the model shows the contents, of social responsibility across the Group. Among Investment and Appraisal Management Governance features and guarantee mechanism of the social responsibility performed by AVIC. them, Office of Social Responsibility which belongs Committee Committee Committee Committee to Comprehensive Management Department of AVIC’s model of concept of social responsibility is logically composed of the concept of corporation social responsibility, five major support Group headquarters is full-time responsible for organizing and promoting the overall management of General Manager of the Group systems and six elements of responsibility. Among them, the concept of responsibility, “take heart as wing to fly with dream”, is the social responsibility across the Group. The member core, which is surrounded by five major support systems for AVIC’s performance of social responsibility, namely, corporate governance, units of the Group have special offices as well as full- management promoted by responsibility, comprehensive risk management, stakeholder engagement and responsibility culture. Comprehensive Management time and part time employees of social responsibility, Department of the Group coordinated by the Group headquarters. Management office of social In September 2014, the Third Session of China responsibility of each listed company Charity Fair cosponsored by the Ministry of Civil Pursuit of the Integrated military and Affairs, State-owned Assets Supervision and Management office of social ideal of peace civilian development Administration Commission, All-China Federation responsibility of each member unit of Industry and Commerce, People’s government of Guangdong Province, People’s Government of Corporate governance Shenzhen City, and China Charity Alliance was held in Shenzhen. Having participated in the meeting
for three times, AVIC brought a project, named Promote member units of the as “Colorful Aviation People”, to show its efforts Group to establish the professional Management in charity works, such as scientific popularization management organization of Responsibility energy conservation and promoted by of aviation, energy conservation and emission culture responsibility emissions reduction, be equipped Take heart reduction, overseas aid, medical support, earthquake with full-time management Dedication to Quality and safety relief, environmental protection, etc., obtaining good personnel, and continually improve grow together as wing to fly as the root social response. management network with dream Three major systems Healthy, Security and Environ- of energy conservation ment Management System and emissions reduction Perfect AVIC’s management Integrate environmental As a responsible large-scale integrative central information system of energy protection index into the annual Stakeholder Comprehensive risk engagement enterprise, AVIC adheres to the green development, conservation and environmental business plan evaluation index management protection; print and distribute of member units and further and promote clean production. Within the Group, it AVIC’s Provisional Regulation on implement the target-oriented continues to push AVIC’s Provisional Regulation on Statistical Management of Energy responsibility system of energy Energy Conservation and Environmental Protection Conservation and Environmental conservation and environmental Practice of low-carbon Adherence to Management, and promote the construction of three Protection protection environmental independent philosophy innovation major system of management organization of energy conservation and emissions reduction, statistical monitoring as well as assessment of rewards and punishments. At the same time, it encourages the member units to implement healthy, security and environment management system. Implementation and Management of Responsibility 12 13
Internal Control and Risk Management Mainly Participant Associations and Cases of Communication Activities Organizations To effectively identify and guard against risks as well as perfect risk Leader Supporting Online Interaction European Partners Visit to Africa management oriented internal control, AVIC released the related system of internal control and risk management, according to the Name Association related regulations issued by State-owned Assets Supervision and office-holding Administration Commission and Ministry of Finance, as well as Presidium unit combining with its own actual situation. At the same time, according China Federation of Industrial Economics to the actual operation and management and external regulatory China Association of Enterprises, China Vice-president requirements, as well as internal control operation and various problems Entrepreneur Association unit China Association of Management of found during the evaluation and audit, AVIC dynamically updated internal Vice-president unit control and strengthened the timeliness and operability. The subordinate Military Enterprises China Association of Peaceful User of listed companies and member units also formulated corresponding Vice-director unit system of internal control and risk management, build the management Military Industrial Technology and control system of internal control covering group headquarters, Society of Management of China Director unit On January 28, Li Keqiang inspected AVIC On October 8, Lin Zuoming and Jean- On February 13th, LI Fangyong, Deputy In June, the delegation from AVIC Aircraft section companies and member units. China Association of Chief Financial the First Aircraft Institute. He said that AVIC Paul HERTEMAN, Chairman and CEO of General Manager of AVIC met with FOLEY, and CATIC went to Africa to pay an official Vice-president unit Officers must take its own road, and praised that Safran (France) took part in the interview CEO of Airbus Helicopter call on President Djibouti and assisted the AVIC has established risk management mechanism and carries out the Accounting Society of China Vice-president unit employee in AVIC created a new road for of People’s Daily Online, and spoke take-off of MA60 the Chinese aviation industry glowingly of Sino-French aerospace power internal control self assessment and the external audit verification on China Human Resource Development Vice-president unit cooperation internal control system every year to build the three lines of defense, Association which are self control of business department, daily test of risk China Association for Quality Vice-director unit management department as well as annual evaluation and audit of Sino-Italy Commission on Director unit Enterprise Cooperation Coalition of college and enterprise Recreational Performance Scientific Popularization of Aviation auditing department. Entrepreneurship
Interested Party and Communication Mechanism Communication of Interested Party
Interested Party Expectation in the Group Modes of Communication and Response Party Central Committee, the Sate Implement national policies as well as laws and regulations; in Participate in the formulation of relevant laws and Council, Military accordance with requirements of the national 12th Five-Year Plan, regulations as well as policies, offer advice and In November, Lin Zuoming met with On January 10, CCTV’s “heart-to-heart” On February 20, pupils in Shenyang City Commission of focus on developing aviation equipment manufacturing industry, suggestions for the health industry development, On December 25, AVIC and Dalian the CPC Central and promote the development of general aviation to serve national and report statistical forms POGOSYAN, General Manager of Russian University of Technology signed a strategic art troupe gave a special performance went into the Aviation Museum Park of AVIC Committee, national economy and people’s livelihood OAK. The two parties signed the minutes of cooperation agreement in Beijing as an expression of gratitude at AVIC Shenyang Aircraft to place flowers before ministries meeting for cooperation matters in various Xi’an Aircraft. The art troupe of workers comrade Luo Yang’s statue fields and employee of AVIC Xi’an Aircraft firstly SASAC (State-owned Ensure maintenance and appreciation of value of state-owned Strengthen intensity of EVA evaluation, perfect the Assets Supervision assets, actively implement the “Go-out” strategy, blend in the institutional system and special work reports, and performed Hard Fight on the background and Administration global aviation industry chain, and comprehensively carry out fully launch project of management improvement of large aircraft development, winning the Commission of the management promotion activities to make main business stronger and innovation warm applause State Council) and better Discuss cooperation issue with many local governments Participate in investment and development of local economy, promote the at home and abroad, integrate into regional economic Local government at Law Popularization for the Public Voluntary Action Participation in Charity Fair Express Sympathy and Solicitude local employment, pay taxes and operate in accordance with the law, and circle to promote its development, manage the enterprise for Model Workers various levels take responsibilities as a major enterprise in accordance with the law, and have the courage to bear the responsibilities Hold the congress of workers and employee on a regular Maintain the legitimate rights and interests of employees, formulate basis, build trade union, promote collective negotiation reasonable salary incentive mechanism, widen the career development of salary, construct platform for employees to grow Employees channels for employees, build the health and safe working environment, up, provide health and safe working environment, and promote the localization of overseas employees actively implement the policy of localization of overseas employees
Carry out good faith management, provide quality products and services Guarantee quality of products, strictly implement the Customers terms of the contract, keep close communication with to establish a responsible brand image customers, and do well in after-sale service Strictly abide by the laws and regulations, promote business ethics, Strictly perform the agreement, regularly hold high-level The activity of law popularization for the In October, volunteers from AVIC Guiyang In September, AVIC, who brought a project On January 15, Xu Fushun, Deputy Director Partners maintain long-term cooperation, and realize mutual benefit and win-win meetings, as well as share technical and management public on “12.4” National Constitution Day Aircraft went to Ziyun Houchang Primary with “Colorful Aviation People” as the of the State-owned Assets Supervision results experience was carried out in AVIC Changhe Aircraft School to visit sponsor students theme, appeared in the Third Session of and Administration Commission, and China Charity Fair Gao Jianshe, Deputy General Manager of Fair and transparent procurement, and stable relations of cooperation Contract negotiations, regular visit, bidding meetings, Suppliers and advice collection AVIC expressed sympathy and solicitude for academician GUAN Qiao, the national Create good community living environment, and promote community Conduct real-time communication with the community, Community carry out the fellowship activities, and participate in model worker prosperity community building Actively participate in activities of social associations and NGO (non- Support the development of social associations and organizations, organizations, initiatively offer advice and suggestions, governmental strengthen the information disclosure, and participate in public welfare strengthen information disclosure, and support public organization) undertakings welfare undertakings Implementation and Management of Responsibility 14 15
Social Assessment
Social Assessment of AVIC in 2014
Serial Date Content Awarding Body Serial Date Content Awarding Body Number Number
Three achievements of AVIC respectively won the first and General Administration of Quality Supervision, AVIC brand was listed on the top of 2014 Chinese Mechanical 1 January 2014 second prizes of National Award for Science and Technology The State Council 13 December 2014 Inspection and Quarantine of the People’s Equipment Brands. Progress Republic of China
Three achievements of AVIC South Aviation Industry Co., Ltd. The Press Center of SASAC, The Central AVIC won two prizes on Chinese Enterprise New Media Annual 2 April 2014 won “2013 Quality Technology Excellence Award of China China Association for Quality 14 December 2014 Enterprise Media Alliance, State-owned Assets Meeting Association for Quality” Report Periodical Office
AVIC won the first prize of Research Achievement of Organization Department of the CPC Central Lin Zuoming won Top 10 People in the News from Stated- 3 April 2014 15 December 2014 The Enterprise Observer Organization Department of the CPC Central Committee Committee owned Enterprises
Scientific American (Chinese version), a The Ministry of Human Resources and Social AVIC was elected as one of 2014 Top 10 Chinese Domestic 4 April 2014 30 persons from AVIC won the tile of National Technical Expert 16 March 2015 famous American science & technology Security Enterprises on Innovation magazine The Central Committee of the Communist 16 young people from AVIC won the title of “National Youth 5 April 2014 Young League, and the Ministry of Human Post Expert” Resources and Social Security
AVIC was elected as the member unit of “Sino-Italian 6 June 2014 Sino-Italian Entrepreneurs’ Committee Entrepreneurs’ Committee”
China Federation of Industrial Economics AVIC won the title of “Five-star Enterprise to Fulfill Social 7 July 2014 and United Nations Industrial Development Responsibility in Chinese Industry” Organization
Consultation and Career Guidance Center AVIC was elected as 2014 National Best Enterprise for 8 July 2014 for National Institution of Higher Education University Students Employment Student Information AVIC won Bashu Charity Award in May
The press center of State-owned Assets Four reports of AVIC won Good News of State-owned 9 July 2014 Supervision and Administration Commission of Enterprises awarded by SASAC State Council
AviChina Industry & Technology Company Limited won 10 October 2014 Corporate Governance Asia Corporate Governance Asia Excellence Award
Two works of AVIC won the Excellence Award on the Second SASAC (State-owned Assets Supervision and 11 November 2014 Session of “Five-One Project” for State-owned Enterprise’s Administration Commission) Construction of Spiritual Civilization In July, AVIC won 2014 Five-star Enterprise to Fulfill Social Responsibility in Chinese AVIC won the title of “Enterprise with the Most Social Value in “Super Contacts” Annual Meeting of Finance and Industry Certificate 12 December 2014 2014” at the First Session of Takungpao.com “Super Contacts” Economics on Takungpao.com Annual Meeting of Finance and Economics On April 28, a certain national major special project of AVIC won the special recognition by All-China Federation of Trade Unions, and AVIC Undercarriage Company and AVIC Chengdu Civil Aircraft Company were awarded “National May 1st Labor Certificate”; 12 comrades, represented by GENG Ruguang et al. of AVIC won “National Labor Medal”. Implementation and Management of Responsibility 16 17
Identification of the Issues of Social Responsibility Key Performance of Responsibility
In 2014, AVIC widely collected issues and materials of social responsibility from the member units, organized the annual summary of the activities on social responsibility, and interviewed one by one each business and management department, as well as some external experts Figure of Ranking Change among top 500 and stakeholders in respect of annual management work on social responsibility and annual report issues on social responsibility to fully consult and absorb the views and suggestions, as well as establish the core issue. No.178
No.212
No.250 Origin of the Issues
No.310 Based on group strategy, management and control No.330 of current situation as well as concerns of each stakeholder, AVIC determined the annual report Implement the action of energy saving and consumption reduction issues on the basis of reference to domestic and Develop low carbon ecological industries No.426 Establish environmental management system international standards on social responsibility, at
Envir r the same time, in accordance with national policy Special topic on oversea operation esponsibility
onmental 2009 2010 2011 2012 2013 2014 requirements, hotspots of current affairs and public Responsibility Idea of responsibility management Main business of aero-manufacturing opinion, focus of investors, top 500 companies at Governance mechanism Development of non-aviation industry In accordance with the latest release condition of Fortune Top 500, AVIC was selected for 6 years continuously by virtue of 386.38 billion
home and abroad as well as report issues on aviation Interested parties Market responsibility Safety production r
Collection of report issues esponsibility Quality management yuan of operating income, ranked 178th, moving up 34th compared to that in the last year, and moving up 248th compared to that in the
manufacturer’s social responsibility as a supplement. Social year of 2009 which was selected firstly.
Special topic on poverty reduction Communication of the Issues and assist of impoverished students Economic performance index Safety and quality index Self-discipline, observance of law, innovation and progress Covering-ratio of standard Care and love the employee, pay back the society AVIC attaches great importance to the management Income (108 Yuan) Profit (108 Yuan) Invested money for safety hitting units under AVIC Deal with emergencies and disasters and provide relief, production (108 Yuan) quality management system (%) work on social responsibility, and shows its actions poverty reduction and assist the impoverished students 3863.8 89.1 on social responsibility through the measures, such as regular release of reports on social responsibility 3495.4 143.6 143.3 3.26 3.25 75.2 and participation in related activities on social 3.21 responsibility. In addition, AVIC integrates the 3008.9 131.3 management work on social responsibility into the news propaganda, enterprise culture and other works of the Group to improve the public’s awareness in 2012 2013 2014 2012 2013 2014 2012 2013 2014 2013 2014 AVIC and its social responsibility fulfillment situation through the external medias, such as Xinhua News Agency, People’s Daily, CCTV, China National Radio, Taxpaying and employee training Energy saving and environmental protection index etc. and We-medias, such as China Aviation News, The implementation of technical Invested money for technical Degree of reduction of Amount of taxpaying Total person-time innovation projects for energy innovation of energy conservation COD’s emission (%) Air Express, official websites, micro-blog, WeChat, 8 8 conservation and emissions and emissions reduction (10 Yuan) (10 Yuan) of employee training reduction (number) etc. (104 person-time) 11.9 493 5.6 171.92 111.43 109.27
145.88
126.32 101.26 131 3 8
2012 2013 2014 2012 2013 2014 2013 2014 2013 2014 2013 2014 18 19
AVIC in the (I) Eagles soar in the cloud, cruising for peace Blue Sky AVIC aims to “serve the country through aviation, reinforce our military force and people”. Riding on the historical mission in the aviation manufacturing industry of China, we provide advanced air weapons and equipment for national air defense in order to carry out our social responsibility in maintaining world peace and Eagles soar in the cloud, cruising for peace development. 19 1. Develop Aviation Equipment, Safeguard National Security Doves flutter in the sky, spreading wings for development From 1951 onwards, in line with the sacred mission of “serving the country through aviation”, as evidenced 21 by the development from J-7 family series to J-10 Liang Jian, Xiao Long Teng Kong, Hu Ying Zhan Chi; to Xin Zhou Shou Fei, Fei Sha Shang Jian, AVIC has revolutionized from second generation jet to fourth generation jet, from land to ocean, and from small to large aircraft. AVIC is now capable of competing against strong aviation players in the same sector around the globe.
“Kun Peng” is a new generation multi-purpose heavy military transportation aircraft self-developed by China. Under complex weather conditions, the aircraft executes long-haul flight transportation for a variety of supplies and crew. In November 2014, “Kun Peng” was first displayed in the air show and performed flight demonstrations.
In the 2014 Zhuhai Air Show, F-10 performed flight demonstrations. F-10 is a third-generation single-seat and single-engine jet fighter self-manufactured by AVIC, and has become one of China’s major new generation jet fighter. It is also the kind of aircraft mainly used by the PLAAF Air Demonstration Team. AVIC in the Blue Sky 20 21
2. Maintain and Create Our Environment, Pursue the Dream of Peace (II) Doves flutter in the sky, spreading wings for development
From the early days of building the nation to new century, the aviation equipment provided by AVIC offers a reliable protection for national 1. Commit in Peacebuilding, Sustain Economic Development security in each era. Today, with strong emphasis on peace and development, China’s jet fighter may go on expedition, or conduct foreign aid and peacekeeping, or land patrol, or rescue search, with an intention of guarding peace and guarding the dream of China. Along with peacekeeping, AVIC adheres to its principle of “reinforcing our military force and people” by adapting to the development trend and the tendency to reform and opening up. Striving to develop civil aviation Z-8 escorting the Gulf of Aden products, it is directly involved in peacebuilding, sustaining and facilitating economic development.
The civil aviation products manufactured by AVIC cover various sectors including business flying, firefighting The two Z-8 jets of certain type manufactured by AVIC Changhe and rescue, medical care, emergency rescue, police and law enforcement. 2014 is a fruitful year for AVIC with Aircraft performed the mission of escorting the Gulf of Aden in the respect to its research and manufacturing in civil aircraft projects, achieving “Four pioneer take off” (MA60 Four pioneer company of a particular team in marine force. In light of Chang artificial rain machine, Vision SF50 light business jet, Leadair AG300 independently-owned business jet, take off Fei’s safety maintenance against crew and under meticulous AC311A light helicopter), “One issued with production permit” (AC312 twin-engine multi-purpose helicopter), 2014 is a fruitful year maintenance by a particular unit, the Z-8 jets of certain type “Three with qualified assessment” (AG600 large firefight/water rescue amphibious aircraft, Y-12F multi-purpose for AVIC with respect completed the escorting mission in a safe and successful way. to its research and transportation aircraft, AC312), “Four approved” (AC311A helicopter, AC3X2 light twin-engine civil helicopter, Since 26 December 2008 to late 2014, Z-8 and Z-9 manufactured manufacturing in AC313A heavy helicopter, JL-4A/1 propeller aircraft). civil aircraft projects, by AVIC have performed nearly 20 missions of escorting the Gulf of achieving “Four Aden with outstanding achievements. pioneer take off”
Z-9 safeguarding Syrian chemical weapon transportation
The exercise of Z-9 safeguarding Syrian chemical weapon transportation. The peacekeeping force and convoy formation in Africa are equipped with Z-9 helicopters manufactured by China, which have taken part in several operations. In Asia, there are countries already reserving Z-9 as helicopters particularly for Head of state. Business jet is used as a transportation aircraft in AG600 aircraft is a large firefight/water In 2014, “Modern Ark” 60/600 aircraft received 88 administrative affairs and commercial activities, rescue amphibious aircraft designed and self- new orders, which has accumulated the delivery also known as administrative or commercial manufactured by China. This aircraft is equipped of the 100th aircraft. MA60-series aircraft is aircraft. The project of China’s Leadair AG300 with functions designated for various special currently operated by 28 operators for almost 260 independently-owned business jet was kicked tasks, such as emergency rescue, forest firefight air routes across 18 countries and regions, with Y-8 involving in search and rescue for the missing off in June 2011, and has attempted first flight and marine patrol. In 2014, we received indicative cumulative flight hours and landing times nearly Malaysia Airlines flight successfully on 5 July 2014. orders for two such aircrafts. doubled 300,000.
On 22 March, a Y-8 aircraft took off from Malaysia Subang Air Base and flew to Andaman Sea northeast of the Indian Ocean to perform the mission of searching and rescuing the missing Malaysia Airlines flight. AVIC in the Blue Sky 22 23 AVIC in the Blue Sky 24 25
2. Popularize Aviation Knowledge, Propel Glamour at the Zhuhai Air Show the Development in General Aviation In November 2014, on the Tenth Zhuhai Air Show, AVIC showcased Aviation science popularized in schools many of its important jets, such as Y-20 large transportation aircraft, During the 63rd anniversary of the establishment of the New China’s complexes in batches under strategic planning throughout China AC3X2 helicopters, “Modern Ark” 700 new generation turboprop aviation industry, all units comprised of AVIC extensively organized achieved initial success. The progress of AVIClub is blossoming aircraft, F-31, etc. An aggregate of over 150 exhibits were displayed aviation science popularization activities in schools. in many regions, with operations officially commenced in Zhuhai, in the show, of which over 30 were real aircrafts, strongest line- Jingmen and Shijiazhuang. Shenzhen AVIC has initiated a up ever. Closely linked to its theme of “Dream of China to be lifted mobile internet marketing model for exploration, while Tianjin, On 16 April, the “Wu Daguan Volunteer Service Team” of AVIC by passion in aviation”, the Air Show unveiled the overall strength, Chengfa entered Xindu Sanhe Elementary School and organized Xinjiang, Suzhou AVIC have completed the signing of cooperation the 2nd event on science knowledge popularized in schools. On 17 agreements. Meanwhile, we have established Aviation Culture brand image and social responsibility of AVIC. Underlying the “China April, the Turbine School aviation science popularization promotional Communication Co., Ltd, set up an international flight performance Aviation Museum” is the creativeness of “The Cube”. AVIC Aviation team of AVIC entered Second Elementary School Attached to team, and organized flight assembly and general aviation show. Museum is categorized into eight exhibition areas including military Jiangyou Normal University and gave a lesson to educate students The “AVIC” brand is becoming a powerful engine in driving the aviation, civil aviation and general aviation aircraft, whereas the development in China’s general aviation and an important symbol on aviation knowledge. On 6 June, the Wu Daguan Volunteer display effect can be enhanced by large-scale systems, seriation, Service Team of AVIC and CAPMC travelled afar to Shanxi Luliang for strong aviation state. Fangshan County Kaifu Elementary School and organized the and integration, which in turn is well-received by a lot of audience aviation science popularization activity in financing poor student and at the exhibition. Through the creation of themed exhibition areas, promoting the message of “love your country, love aviation, build independent and silent exhibition area on the ground and organizing your dream of serving the country through aviation”. flight performance, level of attractiveness, interaction, science popularization and entertainment is therefore enhanced. During the Science popularization volunteers interacted with students, popularized knowledge on aviation, distributed books, school Air Show, AVIC also organized special events which includes the supplies, etc. in their every destination, in order to stimulate First AVIC light sport aircraft design contest, the Sixth “Imagine Cup” students’ passion in learning science, applying science, loving national future aircraft design contest award ceremony and the Third science, as well as disseminate the ambition of serving the country “AVIC Cup” international drone innovation contest launch ceremony. through aviation and build the dream of serving the country through aviation. Since organizing for the first time in 1996, previous Zhuhai Air Shows witnessed China’s aviation industry having revolutionized across five areas, from second generation jet to fourth generation jet, from small and medium aircraft to large aircraft, from mechanization to information technology, from manned to unmanned aerial vehicles, from international subcontracting production to R&D cooperation, evidencing a rapid leap in AVIC’s strength and its massive change Zhong Hang Tong Hang developed general from local business to multinational corporations. aviation business in Hulun Buir
“Under the boundless sky, on vast plains, cows and sheep can be seen when the wind blows and grass lowers…try to fly from Hailar to Manzhouli on a sunny day, overlooking the grasslands of Inner Mongolian for only RMB300, discounted to RMB90 when necessary.” This is not an exaggerated advertisement but a physical activity of AVIC in the general aviation sector. AVIC Tongfei North China Company together with Inner Mongolia Hulun Buir League have established China’s first general aviation short-haul AVIClub experienced rapid development transportation enterprise – China Aviation Industry General Aircraft throughout China (Hulun Buir) Co., Ltd, opening and aligning the air routes across Hailar to Root River, Manzhouli, Jiagedaqi, etc. to the extent of Since 2014, AVIClub of AVIC officially commenced operations. carrying out short-haul transportation business for general aviation. Following the signing of the AVIC project with China’s first general As planned, there is gradual expansion to establish about 15 airport aviation town – Jingmen, we have entered into strategic cooperation networks near the end of “Twelfth Five”, in order to allow general agreements with cities like Wuhan, Shenyang, Nantong, Tianjin, aviation to cover all counties within Hulun Buir, so as to create a Chongqing, Beijing, Zhuhai. The establishment of 50 AVIC aviation one-hour flight circle of “travelling across counties in time”. 26 27
AVIC AVIC just leaves an impression of aircraft maker on people outside. When AVIC is mentioned, everybody will call to mind “J-10”, “Kunpeng”, “Dayun”, “Z-10”, etc. Flying in the blue sky, these aircrafts seems very far away around Us from us. In fact, AVIC is quite close to us, being all around us.
On the distribution, AVIC has become ubiquitous in China. The member units and identifications of AVIC are People know you well around the world as a distributed almost all provinces, municipalities directly under the Central Government and autonomous regions neighborhood 28 and AVIC people are found in Asia, Africa, America and Europe.
It lies in the life instead up in the clouds 32 When you travel in the mountains and see drones executing the tasks of farmland and woodland spraying, power line inspection as well as aerial survey and aerial photograph, can you think of that they might be new civil products of AVIC?
When you frown in the face of urban haze, do you know that UAV platform for dispersal of haze has been successfully developed by AVIC?
When you are attracted by the big screens on urban squares, do you know these screens are mostly from AVIC Shenzhen Tianma Microelectronics Company?
When you go shopping with your credit-card, can you image that the chip in it is a product of AVIC Shennan Circuit Limited Company?
When you visit the Forbidden City and Great Hall of the People with your relatives and friends, you may not think of that AVIC Dabei Property Management Ltd. is at your service anytime and anywhere.
When you and your family go shopping and enjoy a diversion in Rainbow Department Store, you may not know that the high quality services provided by Rainbow Department Store is the result of AVIC’s high quality.
When you are wearing Fiyta watch, do you know this brand also belongs to AVIC?
When you invest money into the stock market, you may accidentally become the shareholder of any of 29 listed companies under the governance of AVIC.
It is predicted that El Nino phenomenon will come in 2015. When you worry about the crops to be affected, do you know that Groupama AVIC Property Insurance’s agricultural insurance products can help you with your problems?
Besides, there are hospitals of AVIC, AVIC Automobile Industry, AVIC Trade, Civil Aviation University Of China, AVIClub, iyouke.com, itronk.com and others spreading all over the country.
That’s it. AVIC is all around us, and we are together. AVIC around Us 28 29
(I) People know you well around the world as a neighborhood
1. Logo Recommendation of 2. Distribution Map of AVIC Member Units
The emblem of AVIC is composed of the Earth and a morphing aircraft. The aircraft points to upper right, symbolizing the aspirations of AVIC, “a prosperous country with a powerful army and rich people”. The blue ring shows that AVIC has a profound basis of high aviation technology, and also symbolizes the close unity of member units surrounding AVIC, generating a strong cohesion. “AVIC” under the aircraft represents the Group itself. It is shown that through the composition that AVIC, under the leadership and concern of the Party Central Committee, the State Council, and Central Military Commission, it implements the strategy of “two integration, three innovation, five characteristics and one trillion”; carries forward the Group aim of “serving the country by developing aviation, making the military force efficient and people rich” and Group concept of “commitment, integrity, innovation, surpassing”, as well as makes unremitting efforts in the establishment of new, large and strong aviation. AVIC around Us 30 31
3. List of Listed Companies and Index Diagram of AVIC 80% AVIC (898001) Shanghai Composite Index (000001) Serial Listing Serial Listing No. Listed company Abbreviation Code location No. Listed company Abbreviation Code location 70%
Hafei Aviation Industry AVIC Electro-mechanical AVIC Electro- 1 HAI 600038.SH Shanghai 16 002013.SZ Shenzhen Co., Ltd. System Co., Ltd. mechanical 60% Sichuang Chengfei Jicheng Jiangxi Hongdu Aviation 2 Hongdu Aviation 600316.SH Shanghai 17 Science & Technology Chengfei Jicheng 002190.SZ Shenzhen Industry Co., Ltd Innovation Co., Ltd. 50%
AVIC Photo-electricity China AVIC Electronics AVIC Photo- 3 AVIC Electronics 600372.SH Shanghai 18 Science & Technology 002179.SZ Shenzhen 40% Co., Ltd electricity Innovation Co., Ltd.
Sishuan Chengfa Aero Chengfa Science 30% 4 Science & Technology 600391.SH Shanghai 19 AVIC Sanxin Co., Ltd. AVIC Sanxin 002163.SZ Shenzhen & Technology Co., Ltd.
Guizhou Guihang Automotive Rainbow Department Store Rainbow 20% 5 GACO 600523.SH Shanghai 20 002419.SZ Shenzhen Components Co., Ltd. Co., Ltd. Department Store
AVIC Capital Holdings AVIC Electrical Measuring 6 AVIC Capital 600705.SH Shanghai 21 ZEMIC 300114.SZ Shenzhen 10% Limited Instrument Co., Ltd.
AVIC International Holdings AVIC International 7 AVIC Hebao Auto Co., Ltd AVIC Hebao 600760.SH Shanghai 22 0161.HK Hong Kong Limited Holdings 0%
AVIC Heavy Machinery AVIC Heavy AVIC International Holdings 8 600765.SH Shanghai 23 AVIC International 0232.HK Hong Kong Co., Ltd. Machinery (HK) Limited -10% Jan Feb Mar Apr May June Jul Aug Sep Oct Nov Dec
Happiness Holdings Happiness 9 AVIC Power Co., Ltd. AVIC Power 600893.SH Shanghai 24 0260.HK Hong Kong (HK) Ltd. Holdings -20% Baosheng Science & AviChina Industry & 10 Technology Innovation BSTI 600973.SH Shanghai 25 Technology Company AviChina 2357.HK Hong Kong Co., Ltd. Limited 2014, AVIC index rose up to more than 70%, exceeding the market.
Nexteer Automotive 11 AVIC Real Estate Co., Ltd. AVIC Real Estate 000043.SZ Shenzhen 28 Nexteer 1316.HK Hong Kong System Group Limited
Shenzhen Fiyta (Group) AVIC International Ship 12 Fiyta A 000026.SZ Shenzhen 26 AVIC Ship O2l.Sl Singapore Co., Ltd. Holdings Limited
Shenzhen Tianma Shenzhen KHD Humbo Idt Wedag 13 000050.SZ Shenzhen 27 KWG: GR Frankfurt Microelectronics Co., Ltd. Tianma A International AG
AVIC Power Control AVIC Power 14 000738.SZ Shenzhen 29 FACC AG AT0000FACC2 Vienna Co., Ltd. Control
15 AVIC Aircraft Co., Ltd. AVIC Aircraft 000768.SZ Shenzhen
Indicator Unit 2012 2013 2014 Asset and capital securitization rates % 52% 54% 59%
The market value of its listed companies RMB One hundred Million 1,796.6 2,723.8 4,641.7
The number of its listed companies Company 26 28 29
Cumulative dividends of listed companies RMB One hundred Million 18.13 15.69 25.28 AVIC around Us 32 33
(II) It lies in the life instead up in the clouds
AVIC dose not fly in the clouds, but more around us. In terms of geographical distribution, it has more than 200 affiliated organizations distributed in more than 30 provinces, autonomous regions and cities of China as well as more than 180 foreign countries and territories. In terms of industries, AVIC implements the “civil-military integration” strategy to vigorously development civilian industries and extensively integrates itself among the people’s daily lives by In the morning, I was When I arrived the At noon, we went In the afternoon, my After a day’s work, I The AVIC smart electric means of the advantages in aviation high-techs and aroused by time service office, employees to AVIC Hotel’s email box received chose the shuffle bus for meter mounted to aerospace manufacturing system. of the FIYTA watch. of AVIC Huili were underground staff AVIC Joy Air’s fear of traffic jams. The the door reminded On March 25, FIYTA “Three-Dimensional Reading” After opening the designing photovoltaic canteen for lunch, promotional information shuttle bus is a Silver me of running out Modern stood out from 4,815 pieces provided by 1,816 new refrigerator and (PV) systems using seeing that several for celebrating the 900 independently- electricity after I arrived 1. AVIC is in your life manufacturers from 53 countries and won the 2014 Red Dot a hurried breakfast, rooftop resources. stocks of AVIC had fifth anniversary of developed by AVIC home, so I purchased Product Design Award AVIC-involved civilian industrial fields I drove my newly They said that, the first limited up. According formal operation, and Xi’an Silver Bus additional quantity of brought new-energy 325 KW distributed to colleagues of AVIC which recommended affiliated to Volvo Joint electricity online with High-end consumer car to my office. There PV power generation Securities, that was me to take part in the Venture. It felt very my electricity-purchase Motorcycle goods and retailing was a traffic jam when demonstration project because that day the travelling route – “a tour good to sit in the bus. card. Opened the I passed AVIC 361 of AVIC Hebei Anji subsidiary, FACC AG, of famous mountains On my way, I brought home care oxygen General aviation Hospital, so I simply Hongye Machinery Co., of AVIC was officially and great waters with some fresh food at generator produced Automobile services turned to AVIC Property Ltd. in Botou City, Hebei listed overseas in aircraft manufacturing” “Rainbow Department by AVIC Jianghang Management’s Urban Province, had been Austria and raised funds – provided by AVIC Store Online”. Rainbow Medical Equipment to Mechanical equipment Logistics Green Convenience connected to the grid of RMB1.81 Billion International Travel. Department Store is the ensure indoor air fresh. Car Wash Self-Service since March 13, 2014, (approximately EUR 213 first ISO22000 Food The doorbell rang, Energy equipment Air freight Station, not far away, which was the first Million). Safety Management Rainbow Department for a car wash. demonstration project System certified Store delivered my Refrigeration Medicine and connected to the grid enterprise in China’s orders, as well as in equipment healthcare of AVIC; and on March retail sector. the refined olive oil 19, Spriggs Farm, a produced by AVIC Electronic information Others terrestrial PV power (Tieling) Pharmaceutical. products station project in UK After dinner, I checked of AVIC International, AVIC Wechat and China June 7, Rainbow’s first mall-centered community-type was completely and Aviation News with department store was opened successfully connected my mobile phone, set to the grid. the FIYTA alarm clock, and went to sleep peacefully. AVIC around Us 34 35
2. AVIC Serves People’s Livelihood (2) Groupama AVIC Insurance’s (4) Develop Creative Industry and Serve Rapid Response to “11.22” Kangding Transformation of Economy AVIC implements and practices the strategy of “integration into the circle of regional economic Earthquake development”, is committed to economic development in non-aviation industries and local regions, In 2014, AVIC proposed to realize transformation and and uses its advantages in aviation manufacturing system, to extensively serve people’s livelihood. In November 22, a 6.3 earthquake occurred in upgrading into manufacturing industry servicizing Kangding County, Ganzi Tibetan Autonomous with cultural creative industry as a leader, develop (1) Joy Air’s 5th anniversary of official operation, number of passengers general aviation creative cultural industry with reaches one million Prefecture, Sichuan Province. A total of 3,261 people in Ganzi Prefecture are policyholders of personal “Aifeike” as brand, develop leisure tourism industry At noon on January 23, 2014, Flight JR1548 from TaiYuan to Xi’an landed at Xi’an Xianyang accident insurance in Groupama AVIC Property with “Aiyouke” as brand, develop endowment health International Airport – Joy Air saw the one millionth passenger, which is also the first time that China- Insurance Co., Ltd. (referred to as “Groupama industry with “Aixinke” as brand, develop Internet made civil aircrafts have carried 1 million passengers. AVIC”), there is a total of 280 thousand mu of business incubation platform with “Aichuangke” farmlands and 87 million mu of forests insuring as brand, and develop high-end environmental From operation commencement on August 15, 2009, Joy Air has gone through five years with agriculture and forestry insurance. Within 30 minutes intelligent commercial bus with “Aiweike” as brand, 23,739 accumulated flights, 43,233.77 hours of safe flight time, and fleet size up to 8 aircrafts. The since occurrence of the earthquake, Groupama to realize effective overflow of brand, technology and network including more than 20 routes covers the five regions of Northwestern China, Northern AVIC immediately initiated an emergency plan, industry of high-tech aviation industries into modern China, Central China, Eastern China and Southern China, including 13 provinces. Joy Air always prepared RMB20 million as excess reserve, opened service industry, cultivate new economic growth point keeps in mind the mission of “to develop China’s regional air transport market and promote China’s green channel of claims, and contacted with the and serve transformation and upgrading of domestic domestic civil aircraft manufacturing industry”, firmly assumes the role as a leader in market-based economy. operation of China-made civil aircrafts. Constant collection of market information with feedback, clients forwardly for fast payments. Meanwhile, the 23,739 flights listening to passengers’ comments, and improvement of aircraft performance and service levels Company donated RMB1 million used for earthquake jointly with AVIC, Joy Air and its “Xin Zhou 60 win passengers’ love and become popular in the relief work. Joy Air has accumulated market. Every Joy Air person and AVIC person knows by him/herself whether the hardness and 23,739 flights, safe flight time challenges from zero to one million passengers are cold or warm. (3) A Special Return Visit of 43,233.77 hours, and fleet size up to 8 aircrafts The number of one million passengers is a milestone. Air Joy, holding the China Dream of “self- One year ago, 34-weeks pregnant LV Yuanfang improvement of China’s civil aircrafts”, is ready to meet the new future with confidence. “ALS” (a patient with spinal muscular atrophy) made a special visit to Beijing for delivery from Gansu but encountered a dilemma that no hospital would admit her. Under the almost desperate and no-way-out situation of poverty and disease, General Hospital of China Aviation admitted her for free. After careful treatment, LV Yuanfang gave birth to her son and was discharged to return home safely.
A year later, a team of experts including President GAO Guolan went to the home of Yuanfang in Gansu for a special return visit of the mother and son with birthday gifts and blessings to her family. Inspections and evaluations showed Yuanfang’s recovery and her son Qihang’s development were in good condition. For Aiweike minbus, it obtains 35 items of technological innovation and 6 items of design patent as well as the whole intellectual property rights; through fast charging of one hour, it can drive 300km continuously 36 37
AVIC with Safety (I) AVIC in pursuit of safety
First AVIC attaches great importance to production safety, earnestly implements safety laws and regulations, comprehensively promotes safety standardization combined with actual situations of AVIC, improves safety standards, normalizes operating procedures to form a standardized safety product-based platform, establish AVIC in pursuit of safety 37 a hidden danger investigation and management system with the trinity of safety production standardization AVIC manufacture focusing on quality 40 construction, hidden danger investigation and management activities of a mass character, and special hidden danger investigation and management in high-risk places, systematically normalize efforts in terms of production safety and occupational health, continue to implement safety training and education, and promotes stable progress in production safety. There is neither large, major or serious production safety accidents, nor new occupational diseases occurred throughout the year.
Safety index Unit 2014
Rectification rate of hidden dangers % 95.74
Rectification rate of major accidents % 100
Developed master emergency rescue plans Plan 399
Developed division emergency rescue plans Plan 2,478
Investment in occupational safety RMB Ten Thousand 5,029
Organizations certified by occupational health and Organization 52 safety management system
Production Safety Management Framework 1. Advance Production Safety Standardization AVIC Production Safety Management System AVIC safety management departments actively implement State Administration of Work Safety and System Responsibility Incentive System Appraisal and Management System Supervision and Standar Institution and Education System T Management System Emergency Network System Information raining and other departments’ requirements on promotion of the standardization of production safety, and established d System a whole set of production safety management system combined with AVIC’s own characteristics in respect of safety, to improve the management of production safety at all levels, in all aspects and during the entire procedures. It strives to make every possible Corporation Basic Management Platform Focusing efforts to achieve enterprise safety management on Improvement of 6S Standards standardization, onsite production standardization and operation procedure standardization. AVIC with Safety First 38 39
Safety Production Management Organization Chart 3. Continue to Strengthen Basic Safety Management
AVIC Production Safety Commission In 2014, organizations of the Corporation, by combination of their own characteristics, continued to strengthen basic management, prepared emergency plans, organized safety drills and emergency rescue drills, promoted 6S management and safety appraisal and management and increased efforts with regard to personal protection and technological protection to improve the level of production safety. The Corporation’s investment amount in AVIC Production Safety Ofce RMB terms of safety in 2014 is RMB321.25 Million, essentially equivalent compared with the previous year. 321.25 Significantly effective safety month China Flying Dragon deepens the Million activities of AVIC Chengdu Aircraft construction of safety management system The Corporation’s From June to July of 2014, AVIC Chengdu Aircraft investment amount in actively carried out “safety and environmental In 2014, China Flying Dragon revised Production terms of safety in 2014 AVIC Regional Production AVIC Technical Production Safety Management AVIC Production protection moth” activity with themes of Safety Responsibility system, timely updated is RMB321.25 Million, Departments of Organizations “strengthening the awareness of red line and Aviation Safety Management Manual, Operation Safety Coordination Team Support Department Safety Experts Team essentially equivalent Directly Subordinated to AVIC promoting safety and development” and “declaring Specifications, Working Procedures Manual” and compared with the war against pollution”. During the activity, a total of previous year other manual, developed China Flying Dragon 138 sets of propaganda and education wall charts Handling Procedures for Unsafe Events of Civilian and 530 books for learning were distributed; more Aircrafts, widely promoted the new China Flying Production Safety Management than 300 workers, more than 400 shift leaders Dragon General Aviation Regulations on Flight Departments of Organizations and more than 310 pilots received safety training; Operations and the brand new Safety Supervision Afliated to AVIC compliance inspections were carried out in 16 Worksheet, built a new cloud drive for safety professional plants and 5 production departments; information, and introduced a safety monitoring Safety and Emergency Reuse Management 2. Promote Hidden Danger Investigation 500 employees were organized to participate and mechanism with tripartite participation of the Civil Organization Chart and Management of a Mass Character performed well in knowledge contests. Aviation, Flying Dragon and clients; Flying Dragon’s safety management system was deepened in In 2014, AVIC organized “Safety Month” activities, carried out AVIC all aspects. No flight accident, ground accident, AVIC Production Safety Commission books hidden danger investigation and management activities of a mass 530 accident proneness or serious quality problem character by means of “production safety of one hour” on the basis A total of 138 sets occurred throughout the year. of integrating characteristics of aviation industry and in accordance of propaganda and with requirements of the National Defense Science and Industry AVIC Emergency Rescue Ofce education wall charts Bureau. Significant results are achieved and the rectification rate of and 530 books major accidents reached 100%. for learning were distributed Emergency Rescue Management Departments of Organizations Directly Subordinated to AVIC AVIC Chengdu Aircraft nearly ten thousand people fighting in the forefront of production safety during the hot holiday in August
Emergency Rescue Management Departments of Organizations Afliated to AVIC
Hidden danger troubleshooting on site AVIC with Safety First 40 41
4. Safeguard Occupational Health and Safety 1. Under the Headquarters’ Overall Planning and Guidance
AVIC issued Aviation Industry Corporation of China Management Measures for Occupational Health Monitoring In 2014, quality assurance department of Corporation headquarters prepared and issued the Aviation Product (Z Zi [2014] No. 135) and Aviation Industry Corporation of China Management Measures of Occupational Health Quality Status Quo (2009-2014), promulgated the AVIC Outline for Quality Development (AVICQ2020) (2014 Experts (Z Zi [2014] No. 103), which made clear the occupational health rights of workers according to the law; Edition), in which, they analyzed the quality development status and determined the quality development created the “AVIC Occupational Health Information System to monitor critical data with regard to occupational planning in the next five years. A total of seven organizations directly subordinated to the Corporation and 69 health at regular intervals; by publishing compilations of occupational health laws and regulations, establishment organizations affiliated to the Corporation started the preparation of quality development plans in succession. of industry experts database, organizing professional training, to improve organizations’ capacities to manage occupational health and the quality of professional teams. Part of direct subordinate organizations and affiliated In 2014, AVIC focused on user needs and successfully hosted the Third Aviation Quality Forum with the organizations also developed their own rules and regulations, which further normalized the occupational health organizations theme of “to enhance quality capacities and promote transformation and upgrading” and exchanges and monitoring. 7 communications on 16 selected topics. It promoted aviation enterprises to understand and get hold of A total of seven development dynamics of advanced quality assurance concepts and methods, and enhanced exchanges, In 2014, the occupational health awareness week was carried out. At the same time, organizations at all levels organizations directly collaboration and resource sharing between enterprises in the field of quality assurance. subordinated to the searched carefully for problems existed in the management of occupational health and carried out problem Corporation and 69 rectification; organized workers exposed to occupational hazards and heads of organizations to participate In 2014, AVIC actively promoted AVIC-QMS compliance evaluation. By the end of the year, there had been 98 organizations affiliated a nationwide occupational disease knowledge contest. With a series of activities, employees’ awareness of compliance organizations and 179 compliance processes in AVIC. Due to conduction of compliance evaluation to the Corporation prevention and treatment of occupational diseases were improved and organizations’ management levels of on quality management system, all organizations were promoted to sort their system documents and related started the preparation occupational health are enhanced, great importance was attached to occupational health management by of quality development processes, further clarify quality responsibilities and improve their levels of quality assurance effectively. organizations at all levels, and relevant requirements of laws and regulations on occupational disease prevention plans in succession were further implemented. In 2014, AVIC continued to promote centralized procurement management, encouraged organizations to establish market-oriented and procurement-centralized operating companies to effectively improve efficiency According to Occupational Disease Prevention Law and work practice, each organization set full-time or and quality of supply chain and reduce procurement costs. part-time position for management of occupational health, established or improved the occupational health management systems and procedures; systematically normalized occupational health records, timely sorted 2. Affiliated Organizations Attach Importance out occupational health records and critical cases; effectively implemented occupational hazards monitoring and occupational health examination. AVIC had no new cases of occupational disease in 2014. In 2014, each affiliated organizations, on their actual conditions, carried out quality assurance activities to safeguard quality of products and services. AVIC was awarded “2014 Quality Technology Award of China (II) AVIC manufacture focusing on quality Association for Quality, and quality assurance teams of 15 affiliated organizations were awarded the title of “2013-2014 National Outstanding Quality assurance T. AVIC adheres to the concept of “Quality First, Quality is Priority, Quality as the Root”, the purpose of “Serving the Country by Aviation”, the basic idea of “Professionalism and Integrity”, the means of strengthening training Serial Name of Organization Name of Team quality to promote quality assurance comprehensively. It strengthens organizational leadership and implemented No. the responsibility system of quality work; strengthens quality assurance, improves the attainment of all people in terms of quality, and created a fresh phase of quality work. High achievements are made in respect of 1 AVIC Shenyang Aircraft Aircraft Pipes Manufacturing QC Team steady progress in construction of quality culture, promoting certified and evaluated quality assurance systems, carrying out special rectification to eliminate hidden dangers, and improving quality assurance. 2 AVIC Taifang Vibrating Cylinder QC Team
3 AVIC Hangyu Progress Everyday QC Team AVIC with Safety First 42 43
(2) AVIC 3201 Hospital won the (3) AVIC PingYuan got the UTAS Quality Serial Name of Organization Name of Team honorary title of “Medical and Clinic Certificate No. Heath Institution with the Masses’ Satisfaction” in Shaanxi Province In April 2014, AVIC Xinhang PingYuan Company 4 AVIC Huafeng Plating QC Team won the Quality Clinic Certificate awarded by the United Technologies Aviation System (UTAS), which 5 AVIC Xi’an Aero-Engine “Knowledge and Action” QC Team In 2014, AVIC 3201 Hospital won the honorary title is also the second enterprise in China winning this of “Medical and Heath Institution with the Masses’ Continuous Improvement of Core Workshop Certificate. 6 AVIC Xinxiang Aviation Satisfaction” in Shaanxi Province. Among all the QC Team commended 25 medical institutions, 3201 Hospital is 7 AVIC Changhe Aircraft Quality Composite Parts Engineering QC Team the unique enterprise hospital in the whole province.
8 AVIC Chengdu Institute GVT QC Team (4) AVIC Logistics boosts the supply chain quality management
9 AVIC Shenyang Institute Flight Control System Software QC Team “One generation of materials brings up one generation of airplanes.” As the technical field gathering the most high technologies, dependence of the aviation industry on quality of materials is the most direct and sensitive. 10 AVIC Nanjing Electric and Hydraulic Flying QC Team In order to guarantee quality of materials, AVIC has gradually dispatched and established 62 plant-residential 11 AVIC Qingyun Bright QC Team representative offices involving metallurgical, rubber and chemical industries, etc. to forge the most cutting- edge purchase army. 12 AVIC Hongling Gas Turbine Plant QC Team At the end of 2013, AVIC Logistics established based on all the plant-residential representative offices was 13 AVIC Qing’an “Leap” QC Team designated as the professional platform for the aviation centralized purchase by AVIC. In 2014, on the one hand, 14 AVIC Institute of Strength Endless Progress QC team AVIC Logistics was devoted to demands integration and made great efforts to promote the aviation centralize purchase; on the other hand, it was rooted on mutual benefits and win-win to cultivate the strategic suppliers 15 AVIC Institute of Guizhou Aviation Aircraft Shape Design QC team clusters. Meanwhile, it relied on the scientific management to fully realize the purchase professionalization. AVIC Logistics has effectively and greatly lowered the purchase costs, guarantee safety of the supply chains, expand 15 AVIC Institute of Guizhou Aviation Aircraft Shape Design QC team the purchase channels and innovate the purchase mode and flow, which fully improve the supply chain quality management of AVIC. 3. Distinguished Quality Management Performance (1) Xinhang achieved the title of “One Hundred Excellent Automobile Spare Parts Suppliers in China” for six years successively
In December, 2014, the appraisal result of the Eleventh One Hundred Excellent Automobile Spare Parts Suppliers in China held by the China Automotive News was disclosed and 3 automobile spare parts enterprises affiliated to the AVIC Xinhang won laurels again: the AVIC Xinhang PingYuan Filter Co., Ltd. was awarded “excellent engine fittings and blowdown system supplier”; the AVIC Xinhang Yubei Steering System Limited Liability Company was awarded “excellent steering system supplier” and the AVIC Xinhang Yuxin Automotive Air Conditioning Co., Ltd. was awarded “excellent automotive electronics and electrical appliances supplier”. So far, Xinhang has achieved the title of “One Hundred Excellent Automobile Spare Parts Suppliers in China” for six years successively and won high praise within the industry and wide concern, which fully manifests the brand influence of the Xinhang automobile spare parts.
Xinhang has integrated the aviation quality into the automobile spare parts industry and employ the advanced technologies and the innovative management in the aviation industry into research and development, production, sale and all other links of the automobile spare parts for years. At present, three automobile spare parts products, including the Yubei power steering gear, the Yuxin automotive air conditioning and the PingYuan filter rank first three positions in the industry among the national brands, whose rate of increase in production The representative of AVIC in the supplier’s plant conducts the quality inspection at the site and sale each year always exceeds that of the domestic automobile industry. 44 45
Self-disciplined and Responsible (I) Law-abiding and self-disciplined, innovative and AVIC progressive 1. Enterprise Administration Pursuant to Laws and Working Style Cultivate and self-discipline, Construction innovation and aggressive In 2014, AVCI conducted the legal learning to create the atmosphere of enterprise administration pursuant to laws. It deeply propelled the party’s mass line education and implementation campaign, put great efforts Flourish enterprise, prosper country, on issues rectification and reform and established procedures and systems to conciliate and improve; these measures made issues related to “formalism, bureaucratism, hedonism and extravagance” controlled effectively. and benefit the whole world AVCI strives to fight corruption and uphold integrity, conducts full inspections and special inspection, strictly investigates and treats disciplinary violations and focuses on establishment of the incorruptible culture.
Law-abiding and Visit AVIC on Constitution Day in China self-disciplined, On November 1, 2014, the Standing Committee of National People’s Congress determined to set December innovative and progressive 4 in each year as the National Constitution Day. For this, all sectors of AVIC conducted all kinds of activities, 45 established the constitution power and enhanced the legal sense of all employees. Care for employee, pay back the society AVIC Missile Institute focused on the topic of “carry forward constitution spirits and establish rule of law in China”, highlighted the constitution and the Fourth Plenary Session of the 18th Central Committee of the 48 Communist Party of China, conducted learning and propaganda, explained constitution knowledge, issued the Constitution and learning data and carried out the constitution knowledge competition.
AVIC Turbine Institute held the special topic lecture of Constitution and China Constitution; all the affiliated sectors learnt the constitution through photo exhibitions, special topic films and forums, opened up the propaganda column and Weibo taking the constitution as the topic, and carried out knowledge competition.
AVIC Calculation Institute invited the professional layers to fully introduce the legal risk prevention knowledge, cyclically play the propaganda pictures to enhance the sense of cadres and employees related to knowing laws, obeying laws and employing laws, and conducted the constitution knowledge competition to make the constitution concept get more and more popularity.
AVIC Wanli established the propagation and implementation team, and took advantage of the rule of law propagation panel, LED panel and scrolls for the topic propagation, in combination of the relevant requirements of “Sixth 5” Law Popularization and “New three-year” legal work.
AVIC Lanxiang conducted the questioning activity with awards in the employee activity center. During the activity, responses of employees were enthusiastic, creating a good legal atmosphere of “all learn laws and laws protect all”. Self-disciplined and Responsible AVIC 46 47
AVIC Capital carefully propels education and implementation campaign (2) Development of AVIC Operation 4,680 applications for invention patents, with an System increased of 37.6% compared to that in the last year. The third education and implementation campaign of all members affiliated to AVIC Capital started from March And the only state-level “Integration of Informatization 1, 2014, which is basically ended in September, 2014. There were 8 members units, 33 grass-roots party AVIC developed and implemented AVIC Operation and Industrialization” in-depth integration and organizations, 665 party members and 37 members of the party leading group participating in this campaign. Since System (hereinafter referred to as AOS) throughout innovation experience center established by MIIT commencement of this campaign, the three public consumptions of all the participants had great decreased by the Corporation in 2004. By means of establishment becomes a national demonstration base. reducing 42 meetings and 112 documents and abolishing, changing and establishing 424 rules and regulations. of a process-based operation framework, AOS integrates and consolidates various elements of China is the first to develop the 2. Standardized Management, Self-examination and Self-discipline management, clarifies operation processes and their “Graphene Alloy” corresponding systems, standards, performance In 2014, AVIC continued to standardize the internal management, successfully launched the model of leadership, indicators, tools and methods, etc. to fully integrate Graphene, discovered in 2004 officially, is the fully implemented the operation administration system (AOS) and fully conducted the unified IT framework. In management activities and all types of operation thinnest visible nanoscale material known to people; addition, implementation of “cost decrease and efficiency increase” achieved new effects; the auditing work was activities into a unified document system that can is the most solid materials, and it is more than 100 enhanced and the risk prevention was promoted. effectively adapt to needs of different operations, times stronger than steel; is the fastest electronic units and levels, covering all product life cycles conductivity material, which is 140 times faster than (1) AVIC Leadership Model Release and the whole value chain. This is a big leap in silicon materials; it is the lightest solid material, with management history of AVIC. 97.7% of light transmittance ...... it will “subvert the After repeated discussion and modification, the AVIC leadership model is finally released, which provides guidance future of the world’s electronics industry”. for AVIC leaders at all levels to enhance leadership. 3. Self-Independent Innovation & Aggressiveness In May 2014, AVIC Institute of Aviation Materials originated “Graphene Alloy” materials – a major AVIC has obtained a number of new achievements independent innovation – a new type of alloy AVIC-Do on the technological development in 2014 by materials was invented, filling the gap in the world’s AVIC-Do Essential Factors: Conviction, Vision, Achievement, Inspiration, Do AVIC Leadership Model strengthening innovation-driven. Throughout the year, materials science. It also allows China to become the
Conviction Vision Inspiration Do Achievement there are 4 national science and technology awards, leader in this field. The term “Graphene Alloy” went
“Cultivating our moral character, “We can go as far as the mind let us.” “As heaven maintains vigor “Always be truth in word “From good to excellent” thriving the enterprise, dedicating through movements, and resolute in deed.” 86 national defense science and technology awards; down the word’s technological development history ourselves to the serve of our man should constantly strive for self-perfection.”
country and enriching the world.” With wisdom and discretion, Being responsible and motivated, Ability and action, Producing result, creating value, from then on. With ideals and pursuits, With a Mapping out a strategy, grasp the With diligence to dedicate oneself to work, Taking the lead in setting an example, Committed to growth, high aim and strong sense of opportunity, and be good at: aggressive to be stronger, adhere to: engage in the career wholeheartedly, accomplish goals, and strive for: responsibility, always to: Having an insight into the clue of Driving the vigorous consciousness; and be able to: Getting results of scientic development; Insisting on the road of Chinese extremely critical situation; Honing the dauntless strength; Adhering to the standard of honesty; Achieving a win-win situation characteristics Committing to the Drawing a blueprint of scientic Emulating the innovative mode; Carrying forward the style of earnest work; for all parties concerned; aspiration of aviation service development; Taking the initiative in comfort and Building efcient execution teams; Fullling the realization of ambition Grow the energy of entrepreneurship Choosing strategies that conform to the difcult circumstances with endless In the deepening of reform and the in the top of the class; In the process of bustle and changes, time and rule In the competitive market hard work and color the magnicent implementation of the strategy, we ought to In the persevering and continuous we sweep away camouage to enhance and numerous challenges, we lead the life of responsibility with passion. conquer the difculties and work in a process, begin well and end well, and concentration and uphold a country future and direction of the enterprise down-to-earth manner, speed up the pace make persistent efforts to play an take-off dream with conviction. with a penetrating vision. of implementation of the blueprint with everlasting discourse with the brilliant heroic efforts. achievements.
Firm Ideals: to staunchly insist on the lofty ideal Vision: with a wide vision and clear mind, be Dedication and Self-improvement: Honest and Pragmatic: be honest, truth-seek- Keep People Rich and Army Strong: of communism and beliefs of socialism with able to seize up the situation, grasp the macro conscientiously and responsibly, have a strong ing and pragmatic, to speak the truth, do complete key types of tasks outstandingly, Chinese characteristics, consist with the central economic development trend and the law of internal driving force, does not rest on its laurels, practical work, stress practical results, and improve the development and production of government in thoughts and actions to fulfill the industry development, scientific planning, be unwilling to mediocrity, longing for new persevere with the difficulties by adhering to the weapons and equipment to build a modern great Chinese dream; to strengthen the formulation of development strategy and plan, development and desiring for greater success blueprint; to take the lead in setting an example defense; with openness and cooperation, civil cultivation of party spirit, adhere to the mass line, inspire a shared vision, manage thought, and with perseverance and high morale. and be willing to sacrifice, to be diligent in military integration, combination of industry with and work honestly with self-correction, lead cadres and workers forward. successful career in a generous and noble spirit; finance, and the development of mixed economy, self-cultivation and integrity. Reform and Innovation: emancipate the mind to conquer the difficulties and spare no effort adhere to customer oriented, pay attention to the Scientific Decision: to thoroughly implement and renew ideas, be brave in innovation and with a style of working in earnest, to persistent in return of shareholders and create value for all Aviation service: adhere to the strategy of “two the scientific development view, adhere to the reformation, dare to think, to do, to go, to try, to strategic implementation. stakeholders. integrations, three innovations, five characteris- principle of democratic centralism, base on the be the world first, and lead the future and drive tics, and one trillion”, obey and serve the overall overall situation and long-term interests in a the development with innovation. Build and Organize: pick the right person for Sustain and Transcend: strengthen situation of reform and development. As a focused and balanced way, and make scientific the right job and enhance the combat capability management and support development, focus member of AVIC, we should take on the decision-making and democratic decision-mak- of the team with broad mind, good leadership on the subject of first-class, dare to transcend to responsibility, love and dedicate to the aviation. ing in accordance with the law. and people-oriented; optimize the allocation of realize the leap from falling behind to competing resources and coordinate the efforts of all parties on the equal footing, even to far ahead, build a to promote the overall development of internal century-aged shop, and commit to sustainable and external force; perfect corporate development and achieve an everlasting governance, and continuously improve rules and foundation. regulations and management processes to create an efficient organization. Self-disciplined and Responsible AVIC 48 49
(II) Care for employee, pay back the society (2) Employees’ happy lives
1. Care for Employees, Harmony and Happiness
AVIC adheres to the strategy of talent thriving enterprise that gives priority to the development of human resources to improve employees’ quality and ability and safeguard their rights and interests. AVIC is equipped with a team of workforce with a quite high happiness index.
(1) 2014 employees statistics
Painting and calligraphy exhibition Mountain-climbing competitions Award-winning works of Comrade Yangkun Serial Indicator Unit 2014 Remarks West Lake Moon A memory of Southern No. Xinjiang
This is an emotion explosion during the three Excluding labor dispatching 1 Total number of employees Person 548,276 months of autumn and winter of 2012; at personnel the moment, we were all at Malan Airport, Southern Xinjiang - fought for every minute to 2 Number of female employees Person 173,297 ensure the first flight. Great desert never worries no solitary moon, 3 Number of minority employees Person 15,751 Residual clouds in vast sky not faded. Where sky and desert connected are people and 4 Number of foreign employees Person 14,983 house, Calling for astride along horses. Cold wind blows off the color of world, Ratio of female administrative Labor is really beautiful Tree planting activity 5 % 36.99 Frozen snow washes away excessive personnel magnificence. Goshawk howling is far from the end of the world, Are picturesque rivers and mountains. 6 Employee turnover rate % 8.98
Rate of social insurance for 7 % 100 employees
Investment for employee 104 8 5.01 training Yuan
9 Per capita training time Day 9.9
Person- 10 Total training person-time 1,092,702 Birthday party time
Employee paper-cut
Induction training Self-disciplined and Responsible AVIC 50 51
2. Pay Taxes by the Law and Return to the (2) AVIC is elected as 2014 China Best Enterprise 3. Disaster Rescue and Relief, Poverty (2) AVIC assists Shaanxi to ease drought by artificial Society for College Students Employment Alleviation precipitation At the same time of its own development, AVIC also actively fulfills In 2014, to promote the introduction of talents and ease the its social responsibilities and enthusiastically return to the society; employment problem for students, AVIC issued Opinions on (1) Yun-8 aircraft put into rescue for Ludian Since summer of 2014, Shaanxi Province suffered high temperature it has carried out a lot of work in respect of taking taxation as a Strengthening and improvement of Graduate Recruitment, Disaster Area in Yunnan fully and drought rarely seen in history. On the bass of “May drought” glory, promotion of employment, poverty and alleviation and student adopting site columns, Wechat and other modern electronic and serious “high-temperature and summer-autumn drought” assistance, providing health aid to Xinjiang, earthquake relief and platforms for recruitment propaganda for the first time, which occurred in the last year, persistent drought lasted for more than On August 4, 2014,after occurrence of earthquake in Ludian, Yuan, other fields. AVIC is awarded titles of Advanced Central Enterprise further expanded the scope of special recruitment. It has held 300 days in Northern Shaanxi and Shangluo areas, and more than Yun-8 aircraft produced by AVIC Shaanxi Aircraft took off immediately and Advanced Individuals for Development of Poverty Alleviation special aviation recruitments in 23 universities and colleges 200 days in other parts of Shaanxi. The province’s 85 cities and by SASAC, State Council due to its efforts in fixed-point poverty with admission seekers of nearly 100,000 people (person- from a certain airport in Chengdu, under the leading of members of counties underwent 70% decrease of precipitation; 4.12 million alleviation; the “Blue Chalk” activity wins the China Charity Award for time); it has also held forums and visited 11 colleges and flight crew from a certain division of airmen, braved the rain, such aircraft mu of farmland were affected and 122 mu suffered total crop Outstanding Contributions; and AVIC is also awarded “2014 China’s universities. A total of 13,218 graduates were recruited. And fully loaded with relief workers and materials landed in Yunan Zhaotong First Session Five-Star Enterprise in Industrial Sectors to Fulfill Social in the appraisal activities for “2014 China Best Enterprise for failure; 113.4 thousand people had difficult to obtain drinking water. Responsibilities”. College Students Employment”, AVIC won the honorary title Airport, becoming the air rescue forces firstly arrived at the disaster area Shaanxi Province launched Drought Orange Alert and Anti-drought of “2014 China College Students Employment Top 100”. after occurrence of earthquake. Level IV Emergency Response. (1) AVIC bulletins to commend advanced tax-paying organizations On August 6, Chengdu Air Force re-dispatched Yun-8C aircraft to As the main force of artificial precipitation in Shaanxi Province, AVIC support earthquake relief work in Ludian Yunnan, there are 3 Yun- Flight Test Establishment was entrusted with a mission at a critical To AVIC, the year of 2013 is a “year of market efficiency”, Tip: Anyone who wishes to join in AVIC, please focus on an important adjustment year of implementing development 8C aircrafts flying from Qionglai, Sichuan at 7:20, 9:30 and 13:15 and difficult moment, under sustained high temperature and adverse Recruitment of AVIC website. Quick Link: http: //www.avic. strategies and deepening reform, during which, the all personnel respectively and arriving at Zhaotong, Yuannan for execution of task on construction condition, completed the modified task of Yun-12 of Corporation worked hard and has accomplished the annual com.cn/cn/rlzy/rczp/index.shtml transport of motors, which arrived and departed for four times, with 30t aircraft in advance, and the aircraft was dispatched from Yanliang to research and production tasks and operation development targets. of materials transported totally. In accordance with the demand of relief Xianyang Airport for standby in advance. At the same time of growth in both economic scale and economic work in disaster area, there are many Yun-8C aircrafts arriving at disaster benefits, AVIC actively pays taxes according to the law with paid To successfully realize the artificial precipitation, the AVIC crew taxes of RMB 14.588 billion for the year, with an increase of RMB area successively to execute the task on transporting the relief materials, 1.956 billion on year-on-year basis. Numerous organizations professional earthquake rescue team and technical and medical support cooperated with the staff from Bureau of Meteorology, actively (3) “Approaching AVIC International “charity studied weather conditions, and developed several flight plans. In affiliated to AVIC also perform noticeably well and have set an auction personnel. example of operation integrity and paying tax by the law. In the early August, the storm rages in the sky of Xianyang Airport finally, 2014 annual financial plan meeting, AVIC bulletins to commend many flights flied around it due to bad weather conditions, while this On April 24, 2014 when willows were floating the sky of Beijing, During the rescue, AVIC Shaanxi Aircraft embarked on the preparation 12 organizations, such as AVIC International Rainbow Department time is a good opportunity for artificial precipitation, and the crew twenty foreign guests from 15 countries embassy in China came to of Yun-8 disaster relief aircraft and sent troops to Qionglai, to achieve Store, to incent organizations to make any efforts concerning took off decidedly, handled the unstable factors in the cloud layer improve of operational efficiency as well as enhancement of value Yunhai Hall, Grand Skylight Catic Hotel at 2 p.m., where a worldwide the preparation tasks of 3 aircrafts; and meanwhile provided on-site serenely, adhered to conduct artificial precipitation, and completed and tax creation capabilities. trip carrying the message of love walked into AVIC International. coordination for the Yun-8 aircrafts on site or geared up, to ensure the artificial precipitation task in Shaanxi nicely. Through constant the aviation equipment of disaster relief aircrafts in good condition. On According to the audit report data, the consolidated taxes paid by artificial precipitation operation, obvious rainfall was occurred Over 40 items from around the world were sold at the auction, the other hand, AVIC Shaanxi Aircraft required the related units to fully AVIC in 2014 was RMB 17.192 billion, with an increase of RMB 2.604 in most areas in Shaanxi, and the overall temperature of High- raising a total of RMB 61,950 charitable money, all of which would guarantee the aircrafts, to ensure that the Yun-8 aircraft could implement billion compared with that in the last year. temperature area was reduced obviously, which plays a critical role be used to fund four hope schools in Fengning County, Hebei air transport and communication in a best state, and thus providing the in relief of high-temperature and drought weather constantly existing Province. reliable support for the rescue work. List of advanced tax-paying organizations: in Shaanxi. AVIC International Tianhong Group Co., Ltd. AVIC Trust Co., Ltd. Echo Links Shenzhen AVIC-Changtai Investment Development Co., Ltd. AVIC Import and Export Co., Ltd. “Charity is an extension of culture. Through these auction items, we can As a responsible Central Enterprise, AVIC carries AVIC Finance Co., Ltd. carry out cultural exchanges and enhance mutual understanding in a out various types of poverty alleviation activities all better fashion. China-Africa friendship will also be more secure.” “At first AVIC International Chengdu Xinhuaxin Chemical Materials Co., Ltd. I did not expect to have such a great amount of featured auction items. I across China. Especially in Guizhou and other regions, AVIC International Aviation Development Investment Management felt so happy by the audiences’ enthusiastic participation and dedication of AVIC and its employees’ poverty alleviation actions Co., Ltd. love. I think such activity should be held at least twice a year to attract more countries to participate in.” have lasted for decades, during which there are a AVIC Vanke Co., Ltd. lot of touching stories. See “VII. Reading Sounds in AVIC Luoyang Institute of Electro-Optical Devices —ElsaTECLEAB, GAAS Representative (African Ambassadors Spouses Association) and Mrs. Eritrean Ambassador Mountains (Special Topics)” for more information. AVIC International Leasing Co., Ltd. On August 6, 2014, Yun-8 aircraft arrived at Yunnan Zhaotong Airport and AVIC Aircraft Co., Ltd. unloaded the relief materials. Shenyang Aircraft Industry (Group) Co., Ltd. 52 53
Green development
AVIC upholds the philosophy of “Green Development, Harmonious Development”, to facilitate the corporate transformation development and innovation, thereby saving energy and improving of the AVIC resources utilization efficiency, establishing long-term environmental protection mechanism and creating a resources-saving and environment-friendly development model for the aviation industry.
Construction of environmental management system 53 Development of low-carbon ecological industry 54 Carry out energy conservation and (I) Construction of environmental management system consumption reduction action 56 1. The Launch of “AVIC Evaluation Standard for the Green Aviation Industry”
In addition to the implementation of the works for the ISO14001 Environmental Management System, AVIC also prepared and issued the “AVIC Evaluation Standard for the Green Aviation Industry” (Q/AVIC 09301.2 – 2015 and Q/AVIC 09302.2 – 2015), as well as, commenced the standard pilot works in six pilot units (i.e. AVIC Chengfei, Shenfei, Liming, Xihang, Baocheng and Xinhang). As of the end of the year, AVIC 成飞 has obtained the experts’ appraisal and has been the first unit passing the abovementioned evaluation criteria. The establishment of the industry standards and the implementation of the pilot units laid a solid foundation for “Green Aviation Industry”.
2. The Establishment of a Precaution System for Environmental Contingencies
In 2014, AVIC prepared and issued the “Emergency Response Plans for Environmental Contingencies of Aviation Industry Corporation of China (2014)” (Hang Kong Zhi No. [2014] 1691), which specified the regulation of environmental contingencies. In the meantime, AVIC commenced the approved filing works of the emergency response plans for environmental contingencies to its subordinate units and member units. Units at all levels have complete emergency response systems in place which effectively prevent environmental contingencies.
As of the end of 2014, over 65 corporations under AVIC’s units have been awarded the Environmental Management System Certification. AVIC actively promoted the establishment of the statistics, detection and assessment systems for energy saving and emission reduction. The statistics system covered all member units. Each member unit has a comprehensive management system for energy saving and emission reduction in place via the establishment of “AVIC Environmental Management Platform for Energy Saving”. AVIC also formulated the industry standards of “Audit Requirements of Clean Energy for the Aviation Industry” to carry out audit works of energy auditing and clean production for 62 member units. The Green Development of AVIC 54 55
(II) Development of low-carbon ecological industry AVIC Medical Industry Management Co., Ltd was formed in 2014 to integrate all medical institutions under AVIC Assets into an entity. AVIC Medical will establish a regional “medical unity” by ways of integration, merger, AVIC considers the optimization of business structure, transformation of development modes, saving energy restructuring and escrow to form a O2O of medical and healthcare industry, thereby realizing long-distance and resources, and reducing emission as important social responsibilities, and actively develops an energy- therapy and extending pension industry to the community as soon as possible. AVIC will also establish a saving and environment-friendly low-carbon ecological industry. platform of pension and health industry on this basis, to make the pension and health industry that combines healthcare and nursing moving toward standardization, network formation and clustering, as well as, enlarging 1. Developing Environmental Protection Aircrafts Types and Green AVIC considers and strengthening the business leveraging on the capital market. Aviation Industrial Chain the optimization of business structure, AVIC’s pension and health industry are at the beginning stage, and has formulated a “three-step” strategy up to transformation 2020: AVIC incorporates environmental protection requirements and standards into various processes, covering of development products research and development, manufacturing, services, etc. It develops Environmental Management modes, saving System Certification, low-emission engines, environment-friendly turboprop regional jets and general purpose energy and Firstly, the company will establish Secondly, the company will attract Thirdly, the company will complete aeroplanes, so as to create a green aviation industrial chain. resources, and a platform of pension and the franchisees from sectors the establishment of a platform by reducing emission In 2014, the new turboprop regional jet, MA700, being developed by AVIC obtained milestone results. as important social health industry to fully utilize the of financial, insurance, elderly 2020, to form a creative pension The aircraft targets the medium and short haul regional aviation market and applies modern green aviation responsibilities, and advantages of medical institutions institutions, in particular the culture and health industry cluster with technologies, aiming at obtaining the CAAC/FAA airworthiness certificate and enhancing its competitive actively develops and aviation industry. Some creative institutions, to form brand advantages of AVIC, and advantage in the medium and short haul regional aviation segment, thereby becoming the next generation an energy-saving hospitals will be converted into network distribution advantages tap into the securities market mainstream aircraft type of turboprop regional jets. MA700 aircraft will apply a variety of new aviation and environment- elderly institutions providing and gradually establish a regional timely for business expansion. technologies, including the next generation turboprop engine technology, the telex flight control system, the friendly low-carbon healthcare services, aiming at retirement pension platform. advanced aerodynamic design, a new composite bearing structure, the active noise reduction technology, etc. ecological industry exploring the pension industry The application of new technologies helps MA700 aircraft become the world’s next generation environment combining healthcare and nursing. protection aircraft type of turboprop regional jets. The direct cost, carbon dioxide (CO2) emissions and nitrogen oxides (NOX) emissions of MA700 aircraft reduce 10%, 20% and 30% to 50% respectively, with an outfield noise better than the standard requirement. MA700 aircraft also provides a bigger, quieter and more comfortable cabin environment, with a sound airport adaptability and a rapid departure ability equivalent to a turbofan aircraft. (II) AVIC holds on strongly to develop green industry though facing difficulties 2. Developing an Eco-Protection Industry and Realizing Green Aviation Innovation 20% In recent years, wind power and photovoltaic industry has reached its trough. However, AVIC is determined to develop green energy business and commenced The carbon dioxide Premier Li Keqiang emphasized in the Government Work Report that substantive breakthrough should the largest distributed photovoltaic power project in China with a total investment emissions of MA700 be achieved in the aspect of environmental protection; innovation, intelligent transformation, foundation aircraft will reduce 20% amount of RMB3.8 billion in August 2013. strengthening and green development should be earnestly adhered to; and the lifestyle and manufacturing services industry covering tourism, healthcare, pension, innovative design should be actively developed, which The first batch of 325 kwh distributed photovoltaic power pilot project of AVIC is in line with the green aviation innovation proposed by AVIC. Hebei Anji Hongye was integrated into the power grid in the morning on 13 March, AVIC distributed photovoltaic power generation demonstration 2014. It is the first pilot project of AVIC Group integrated into the power grid. The project combined to the grid (I) AVIC develops pension and health industry project was initiated, organized and implemented by AVIC Heavy Machinery, and was fully invested and constructed by AVIC Huili. The expected annual power According to the data issued by the Committee for Elderly Affairs of the PRC, the aging population in China will generation capacity is 4,083 million kilowatt-hours, saving 12.25 tons of standard increase from 178 million in 2011 to 221 million in 2015, and the aging population will represent one-third of the coal per year, and reducing 407.12 tons of carbon dioxide emissions and 12.25 national population around 2050. Based on the international standard, China has already become one of the tons of sulfur dioxide emissions per year. elderly countries. It poses a big challenge but also a great historical opportunity to develop the elderly industry. AVIC is well prepared for the development of pension and health business. The Green Development of AVIC 56 57
(III) Carry out energy conservation and con- 2. To Promote and Apply the Technology of Energy sumption reduction action Saving and Consumption Reduction
We actively implemented “green manufacturing”, carried out green production, — Firstly, applying new technology and new process, phasing out obsolete devote more effort to energy saving and emission reduction technological production capacities, achieving energy saving and emission reduction. For upgrade, improve the comprehensive treatment of pollutants, conduct green example, coordinating the manufacturing transformation via digitalization, office activities and strive to uphold the philosophy of low-carbon development. In replacing traditional paper printing, saving raw materials for manufacturing, as well 11.90% 19.13% as, conserving a large amount of water and power consumption, so as to avoid 2014, AVIC further implemented the national policy of energy saving and emission The comprehensive The comprehensive reduction. The comprehensive energy consumption for every RMB10,000 of pollutants caused by processes such as heat treatment. energy consumption energy consumption production value (comparable price) reduced by 11.90%, the comprehensive for every for RMB10,000 energy consumption for RMB10,000 added value (comparable price) decreased — Next, reducing pollutant discharge at its very source, using clean process and RMB10,000 of added value equipment. For example, carrying out the coal-to-gas conversion project with production value (comparable price) by 19.13%, and the emission of SO2, COD, NOX and ammonia reduced by 6.78%, furnace exhaust gas as the treatment focus; increasing desulfurization precipitator AVIC renewable strategic metals and alloy project phase I (comparable price) decreased by 7.99%, 8.02% and 6.85% respectively. with desulphurization efficiency increased from 30% to 80%; using oxygen-rich commissioning test run achieved success reduced by 11.90% 19.13% sewage treatment system to reduce pollutant discharge. The Steering Group for Energy Saving and Environmental Protection of Aviation Industry Corporation of China
— Promoting resources reusing and carrying out green operation. For example, The Office of Energy Saving and Environmental Protection of Aviation Industry Corporation of China implementing wastewater reusing, and using natural lighting, wind power and solar power in factories.
The Administration Office of Energy Saving and Environmental — Researching and applying new green aviation technologies, focusing on the Protection of the subordinate units development of technologies reducing pollutant discharge and internal and external noise of aircrafts. 6.78% 7.99% The Cooperative Unit for Energy The Cooperative Unit for The Unit of Energy Saving Saving and Consumption and Environmental Protection In 2014, AVIC COD emission Reduction of AVIC Environmental Protection of AVIC Experts of AVIC further implemented reduced by 7.99% the national policy of The Administration Office of 3. To Research and Develop New Environmental Energy Saving and Environmental energy saving and Protection of the member units Protection Treatment Technology emission reduction and reduced SO2 The pervasion of smog has become more frequent and serious in many cities emissions by 6.78% of the PRC in recent years, which not only affects the transport and passenger 1. To Issue the Pollutants Treatment Standard and travel, but also directly threatens the health of people in China. Hence, one of the Technology of the Industry focuses of AVIC is to fully utilize our professional advantages in aviation platform to eliminate the smog and recreate a blue sky for the people in China.
The Cooperative Unit for Environmental Protection of AVIC organized and prepared the “Advanced and Practical Technology Information of Major Pollutants AVIC Hangyu successfully achieved a breakthrough in a series of critical Treatment for Aviation Industry” and the “Work Manual of Energy Saving” to technologies by utilizing the unique mature technologies of military products based provide advanced and practical technology of energy management and pollutants on the aviation products. It developed soft-wings unmanned aerial vehicle and treatment under various manufacturing process conditions for the industry, so obtained a variety of patents. 8.02% 6.85% AVIC fog dispersal soft wing UAV platform field experiment as to improve the pollutants treatment of its operating units and enhance the achieved success NOX emission Ammonia nitrogen compliance management ability. On March 2014, field test of anti-fogging flexible-wing UAV was successful, reduced by 8.02% emission reduced by achieving desired results, and drawing widespread attentions from all sectors of 6.85% society. (special topic) 58 59 AVIC moving AVIC has always been actively geared to the global and open to the world over the three decades since the reform and opening up; it has exported a total thousands of aircrafts, imported hundreds of aircrafts, toward the world contributing to a large number of introduced technologies and international cooperation programs. In recent years, under the guidance of its strategic goals - “Two Integrations, Three Innovations, Five Characteristics, and One Trillion”, AVIC speeds up the pace of global involvement in terms of international trade, overseas M&A, and direct investment, etc. that its footprints have been all over the world, forming the initial pattern and volume AVIC over the seas of a large multinational company. In overseas M&A and operations, AVIC, as a rapidly globalizing enterprise, 59 unfolds an image as a responsible corporate for global citizens by adhering to combining internationalization development and the fulfillment of social responsibilities. Localized business philosophy 62 (I) AVIC over the seas To be a friendly and 1. AVIC’s Scale Abroad sincere international citizen 64 Since the reform and opening up, AVIC began to set up a large number of permanent establishments in foreign countries based on international trade. In recent years, its continuous overseas M&A and industrial investments have formed a starry global network with affiliated organizations and institutions widely distributed in dozens of countries and territories including Asia, Africa, the Americas, Europe and the Pacific, etc. As of 2014, the number of overseas companies had reached 182, engaged in numerous business fields, such as international Achievements in trade, aircraft manufacturing, high-end retail, engineering construction and resource development. AVIC begins Overseas Operation to show the posture as a large-scale multinational company.
Serial Name of indicator Unit 2010 2011 2012 2013 2014 No.
1 Number of overseas companies Pcs 53 94 139 139 182
2 Number of overseas employees Persons 3,100 12,900 14,000 15,800 19,800
Export revenue from 3 108 dollars 9.8 15.9 19.8 12.4 17 non-aviation products
Export revenue from 4 104 Yuan 164,640 34,485 84,712 12,509 71,148 civil aircrafts AVIC moving toward the world (special topic) 60 61
2. Main Activities in 2014 Tender offer and holding of KHD AVIC integrates and sets up continental AVIC Continental Company acquires F406 aircraft FACC AG listed in Austria successfully Humboldt Wedag International AG (KHD) motors group production line At 9:00 on June 25 of Vienna local time, FACC AG, a subsidiary of AVIC was officially listed in Vienna Stock Exchange with the successful fund-raising of RMB In recent years, AVIC tends to In January 2014, AVIC International saw the In February 2014, AVIC International In April 2014, the Continental Motors located in the 1.81 Billion (EUR 213 million), becoming the 29th listed companies affiliated United States acquired by AVIC in 2011 acquired the accelerate its overseas investment. delivery of tender offer and holding of KHD. announced the establishment of Continental to AVIC. This is the first IPO and listing of an subordinate enterprise to AVIC AVIC processes unique advantages in By achieving majority shareholding of KHD, Motors Group. AVIC International acquired F406 twin-engine aircraft production line from the in European capital market, which expands the positive influence of AVIC in implementation of overseas investment, AVIC has greatly enhanced its international Continental Motors, Inc. (USA) in 2011; bankrupt Reims Airlines. F406 is a 14-seat general- Europe and marks the AVIC’s successful completion of operations concerning where the support network established competitiveness in terms of cement- and acquired Thielert Company (Germany) purpose aircraft with non-pressurized cabin. With overseas projects from acquisition, improvement of management, enhancement of core competitiveness, and increase of outstanding IPO and listing. It plays a during decades of international trade concerned EPC projects, which lays a more in to form Continental Motors Germany the acquisition, AVIC further enriched its production leading roles in exploring practice and implementation of the “Go Out” strategy lines of light business aircrafts and general-purpose allows AVIC to get hold of information solid foundation for the development of in 2013. The Two well-known enterprises for Chinese enterprises as well as operations for overseas real economies and in around the world comprehensively cement-based mechanical and electrical and the recent established CMB constitute aviation / special-mission aircrafts. financial capital markets. and conveniently; and the friendship EPC businesses. the world’s only manufacturer with the full formed by years of friendly exchanges line of aviation gasoline piston engines allows AVIC to integrate into the local and aviation coal / diesel piston engines - community quickly. Continental Motors Group.
January February April June
July August October
Xi Jinping witnessed the Signing of Contract Establishment of Cambodia Bayon Airlines AVIC roadshow of liability insurance for aviation products rounded off AVIC’s acquisition for Hilite Company with Venezuela Ltd. On October 28, AVIC rounded off a special roadshow of liability insurance for On October 30, AVIC took over all-around global aviation products in London insurance market. Venezuela local time on July 21, witnessed by In August 2014, Joy Air subordinated to assets and businesses of Hilite Company upon the AVIC was established Cambodia Bayon Chinese President Xi Jinping and Venezuelan successful M & A delivery from 3i Croup to AVIC EM Airline Ltd. and started the first flight at Great changes existed in China’s aviation subcontract production and President MADURO, a cooperation contract the end of the same year, becoming the complete-aircraft export make incurring liability insurance for aviation in Frankfurt. The acquisition will greatly promote the for a project of 3500 tons/day clinker cement first foreign airline that operates with products an international rule. More than 50 subcontract-based and upgrading of China’s core technologies in terms of production line was signed between AVIC and Made-in-China aircrafts. Within five years, export enterprise affiliated to AVIC are facing such insurance needs. automotive driveline and powertrain to a world-class a Venezuelan enterprise. In recent years, AVIC However, this type of insurance remains a blank in China and they need Bayon Airlines plans to introduce twenty level. has further extended in Venezuelan markets “Modern Ark” 60 regional aircrafts and ten to international reinsurance with large amounts covered. Meanwhile, and actively fulfill their social responsibilities, Airbus 320 trunk aircrafts, devoting itself there also exist misunderstandings and concerns in “Made in China” in the international insurance market, which causes them holding an which have made positive contributions to to building a airline network that “covers attitude of “no involvement” or “high price”. The roadshow has changed raise the level of the Venezuela’s building throughout Cambodia and connects their attitudes of cooperation and created favorable conditions for “Made Cambodia with ASEAN internally and materials industry, create employment in China” to go abroad. opportunities and improve people’s livelihood. Japan and South Korea externally”. This is an important step for Joy Air to go out and achieve a long-term development, and a beginning to expand overseas aviation markets. AVIC moving toward the world (special topic) 62 63
(II) Localized business 2. Localization of Employees Employment philosophy With the continuous development of overseas business, AVIC overseas companies, in line with the principle 1. Localization of corporate of non-discrimination and in strict accordance with the management mode of “internationalization of talents, and localization of employment”, actively promote the employees localization strategy by means of recruitment, culture employment, training of local employees to promote local employment and talent cultivation. By the end of 2014, the total number of AVIC’s overseas employees were about 19800, the vast majority of which are foreign AVIC adheres to the Chinese cultural concept employees, accounting for about 3.61% of the total number. In the process of overseas operations, the initially “tolerance, solidarity, mutual assistance, and cultivated and created team of employees with diverse sources and diverse forms of employment further win-win” with full respect for the host country’s promote a closer contact of overseas subsidiaries with local society. national religion, customs and culture, and lifestyle, and actively takes various exchange Foreign employees of South African AVIC-International Flight Training Academy activities to promote cross-cultural exchange and integration between Chinese and foreign As a professional school for training civilian pilots, AVIC-International Flight Training Academy (AIFA) has employees and to promote overseas companies to become a pioneer of the “Go Out” strategy of Chinese aviation industry; become a high quality platform build their corporate culture based on distinctive to push the Chinese civil aviation airport to African market. More than half of all 103 employees in this AVIC characteristics. flight school come from South African; the general manager, chief director and directors of the base as well as many flight instructor and chief instructor teaching the theory are locals. AIFA creates a large On December 24, the Christmas Eve, AVIC number of job opportunities for the locals when it enters into the market of South Africa. Chairman, Lin Zuoming sent a congratulatory letter to CAIGA Cirrus in the United States, to extend Collaboration in perfect harmony AVIC holiday greetings to the company’s employees and their family members. In the letter, Lin Zuoming said that, since Cirrus has become a wholly owned subsidiary to CAIGA, under the leadership of the Board of Directors, and with joint efforts of Cirrus’ executive team and all the employees led by Mr. Dale KLAPMEIER and Mr. Patrick WADDICK, they have achieved sustained improvement of operating performance.
Foreign employees of AIFA
Cirrus SF50c Aircraft local office of Kenya that integrates into the local community AVIC moving toward the world (special topic) 64 65
(III) To be a friendly and sincere international citizen (2) Profitable AVIC FACC AG and Successful Listing
AVIC also accelerates its accession to the ranks of global enterprise citizens during the “Go Out”. As a rapidly The revenue of FACC AG during the fiscal years 2008 and 2009 was EUR 277 Million, but the operating profit globalizing enterprise, AVIC adheres to the combination of internationalization development and the fulfillment was only EUR 6.4 Million with a loss in net profit of EUR 19.6 Million before being acquired by AVIC. of social responsibilities. The healthy development of overseas enterprises becomes an example of Sino- foreign economic and trading cooperation, and a model international corporate citizen to make stakeholders’ After completing the acquisition of FACC AG, AVIC proposed a strategy of concurrent internal and external satisfaction; it also wins the respect from local society. development, that is, to reduce manufacturing costs significantly and improve international competitiveness by means of China’s low-cost centers as well as to create conditions for listing of FACC AG. Several years after 1. Operation Management and Profit According to the Law the acquisition and integration, compared with the previous fiscal year, the sales revenue of FACC AG increases from EUR 250 Million to about EUR 500 Million, EBIT from more than EUR 8 Million to more than EUR 40 It is an enterprise’s own duty and responsibility to demonstrate the profitable outlook and operate according to Million, and employees from more than 1,400 people to 2,400 with an increase of more than 1,000 jobs. the law, and it is also a premise to win the respect of society.
(1) Acquisition and integration of Cirrus By means of such efforts, improvement was made In June 2014, FACC AG was successfully listed in Vienna. Austrian Government sees it as a new example of in the overall economic performance of AVIC Cirrus Sino-Austrian cooperation and another milestone in China’s investment in Austria. It is widely reported and generally considered by Austria’s main media that, thanks to the strong support of Chinese shareholders, Founded in 1984, Cirrus is the world’s leading year by year. It delivered 276 aircrafts in 2013 with an the listing of FACC AG is quite an extraordinary step, which is deemed as a “coronation” in the FACC AG’s manufacturer of small aircrafts. After the financial increase of 29% on year-on-year basis, accounting company history. crisis in 2008, the United States’ market demand for for 37% in the global market segment; it delivered small general-purpose aircrafts shrank rapidly, leaving 308 aircrafts in 2014 with an increase of more than Cirrus’ development in plight. CAIGA then seized the 12% compared with that in 2013, which was the 2. Equality of Treatment and Care for Employees favorable opportunity to realize the strategic M&A of best performance of new aircraft shipments since Overseas company of AVIC adheres to abide by the provisions of distribution according to work and equal pay Cirrus in 2011. 2008 and further reinforced its sound share in the 308 for equal work, and pay remuneration to employees in accordance with relevant policies and regulations as well market of same-level aircrafts. AVIC delivered 308 as company policies. Both male and female employees in each category receive equal pay. And hotlines are However, after the M&A, the world economy touched aircrafts in 2014 with an available to help overseas employees to solve problems in terms of cultural integration, family communication, Joint efforts of employees from both AVIC and Cirrus increase of more than the bottom again, causing Cirrus’ market to continue medical treatment, differences in diets and the like. 12% compared with to deteriorate with serious shortage of funds and ushered in a bright future, which also won the local that in 2013 the M&A strategy faced serious challenges. In face community’s praise and drew their attention. In 2013, of difficulties, CAIGA sized up the situation and Cirrus SR Aircraft obtained the “American Innovation provided financial and policy supports for Cirrus Award”. PR Newswire reported in a large format immediately to ensure operational turnover and R&D about CAIGA Cirrus expanding the capacity of investment. At the same time, it made great efforts to Grand Forks Parts Plant and its preparations for the accelerate innovations in technologies and products production of jets the big screen of Times Square, and actively explore innovative business models New York. with external sales expansion and inhouse cost reduction by strengthening corporate governance and management control as well as giving full play to the advantages of Cirrus in respect of branding, marketing, customer services, R&D, production, sales, and airworthiness management, in order to achieve management improvement for Cirrus.
Foreign and Chinese employees of AVIC celebrated the successful startup of Turkish Cement Project AVIC moving toward the world (special topic) 66 67
3. Co-build and contribute to the and project management services provided by 4. Carry out Overseas Public Benefit Activities local community KHD affiliated to AVIC. Italian Prime Minister, Matteo RENZI, personally ignited the clinker cement line for Overseas companies affiliated to AVIC focus on people’s livelihood and social progress of the communities where they are located and will carry out public benefit activities to promote social the upgraded plant in November 2014. Support and help of the local parties are inseparable development and progress according to actual situations and needs of the communities. for AVIC’s overseas development. AVIC shall, on the basis of faithful operation according to the KHD has rich experience in plant transformation (1) AVIC International held Africa Vocational Skill Contest law, actively pay attention to and participate in projects that it is capable of installing efficiently and On October 8, the Africa Vocational Skill Contest initiated by the Embassy in Kenya and AVIC construction and development of local areas, realize commissioning new equipment and minimizing International was rounded off in Nairobi, with three vocational college competing teams won investment costs under the circumstances to ensure enterprise value for local service, and perform social the top three and they received prize funds and were awarded with a contract worth USD One responsibilities. the normal operation. Hundred Thousand, respectively; and three persons were given the opportunity to have further study in China. (1) The most environmentally friendly In addition, KHD also transform cement plants to The activity is the first vocational skill contest in Africa. With “teach one to fish” as the starting cement plant at the food of Alps urban solid waste treatment stations successfully in Italy, Norway, Russia, Latvia, Romania, Brazil, Turkey, point, focusing on the concerns of general lack of professional skills and high unemployment rate of young people in Africa, it is hoped that the training and contest may enhance local young Lebanon, Thailand, India and other countries. Rezzato Cement Plant affiliated to Italcementi Group people’s employment skills, promote the combination of education and industry and create a is located in the famous resort, Lake Garda, at the Africa Vocational Skill Contest new mode for Chinese enterprises to fulfill their social responsibility in foreign countries. foot of Alps. The Group decided to transform and (2) New energy company’s PV power The six-week challenge contest has trained and upgraded skill levels of machine processing upgrade Rezzato Cement Plant to make it become plant roots in England and comprehensive professional skills of Kenya’s vocational and technical colleges, and also one of the most environmentally friendly, most advanced education and training reform of local machining and other related professions. More In March 19, the grid connection for AVIC energy-saving and most efficient cement production than 50 players from 18 vocational and technical colleges around Kenya participated in the enterprises to welcome its 150th anniversary. International terrestrial PV power plant project in competition. “Our devices in the school are quite outdated and many students have share one; Eventually, it chose environmentally friendly and UK, namely the SpriggsFarm Power Station, was the devices here are very good. I have learned a lot from Chinese teachers.” one player said. energy-saving equipment, clean technology solutions a complete success. This is the first new energy Three intercommunications were hold during the contest with successful local entrepreneurs project operated successfully in Europe of the new and young leaders invited to provide face-to-face communications and sharing of business experiences as well as encourage players to change their fates with great efforts and to realize energy company by active implementation of the their dreams, and also help them to understand the status of the manufacturing sector in Kenya, strategic layout of market. providing employment opportunities.
(3) Africa sees China’s first overseas Kenya is the first station of the Africa Vocational Skill Contest. AVIC wants to extend it to more African countries in order to enable more Chinese enterprises to help local vocational skill training technical support center for civil and employment of young people in an even better fashion. aircrafts (2) AVIC International New Energy built roads and helps students in To implement the “China-Africa Regional Aviation Cambodia Cooperation Program” initiated by Premier Li In November 2014, the completion of free-of-charge village roads supported by AVIC Keqiang during his visit to Africa to provide technical New Energy builds roads for Cambodia International New Energy Cambodia greatly improved traffic conditions for local villagers. services and spare parts support for African users, AVIC officially established its first Chinese overseas Previously, New Energy Cambodia carried out charity donation activities for the rural primary technical support center for civil aircrafts (Tanzania) in school of Trapaing Kaen, during which, books, small drawing boards, color pens, and other Tanzania. In the future, AVIC will gradually establish school supplies were donated; and they also approached poor families of students to learn more customer service support centers including airline about local life, education and healthcare, with the hope to provide healthy life and happy growth for children. technical support, spare parts support, flight simulation training, and aircraft maintenance, to (3) AVIC EM makes contributions orphanage in Sri Lanka The most environmentally friendly cement plant at the food of Alps established by AVIC KHD deliver timely, effective, and comprehensive customer AVIC EM Sri Lanka makes contributions to services for Chinese aircraft users in Tanzania and August 7, AVIC EM International Sri Lanka carried out donation activity called “Let Love Hold “Loris” orphanage neighboring countries. Future” in Loris orphanage located in Colombo. The Company contributed food, stationery, cooking utensils, and electrical appliances worth Rupee 200 Thousand. (special topic) 68 69 The sound of reading
Children are flowers of the motherland, the hope of the world, and it is our responsibility to take care in the mountains of them for thrive. Education is the foundation of healthy growth of children, an important way to get rid of poverty. Poverty is the root cause of children deprived of education.
“Blue Chalk” of the teacher recruitment and supporting education AVIC devotes itself to long-term poverty alleviation by education, continuously carries out “Fixed-Point Poverty Alleviation”, “Small Hands in Large Hands”, “Light the Dream”, “Blue Chalk” and other public 69 benefit activities, benefiting a total of more than 20 provinces, more than 1,000 schools, and more Sponsorship and Assistance – “Parents’ Love” than 70,000 students. 70
(I) “Blue Chalk” of the teacher recruitment and supporting education
Learned from longer-practice of poverty alleviation by education, AVIC realized that: the poor foundation of teachers in poor-stricken areas becomes an important long-term factor restricting the development of education and poverty alleviation. Thus, an creative activity of “teacher recruitment and education supporting” was gradually formed.
In 2010, AVIC started up “Blue Chalk” rural teacher training public benefit action to recruit excellent volunteer teachers and provide free training for rural teachers. The influence of “Blue Chalk” expanded gradually and became the potential of a prairie
The 17th “teacher recruitment and education supporting” fire from a single spark. At first, only a few people, dozens of people, and later action sets off again hundreds of people, participated; and a series of love projects are derived such as “Mother Canteen” and “Love Desk”; the project has been widely responded and participated. In the recent five years, a total of more than 120 excellent volunteering teachers have been recruited all across China, providing free training for more than 16,000 rural teachers from more than 6,000 schools in Jiangxi, Guizhou, etc.; it has updated their philosophy of education, broadened their horizons, and played a positive role in the improvement of classroom teaching effectiveness. In the first “China Charity Exhibition” in 2012, “Blue Chalk”, as a brand public benefit project of AVIC, was well received and won the “China Charity Award for Outstanding Contribution”.
In July 2014, Shenzhen saw the 5th anniversary of “Blue Chalk” and 2014 Set-out Ceremony sponsored by AVIC International Charitable Fund. 45 excellent teachers as well as principals of middle and elementary schools and education experts from all across China will set off again to provide an one-week free training for about 5,000 rural teachers in Guiding County and Changshun County of Guizhou Province and Dayu County, Chongyi County of Jiangxi. The sound of reading in the mountains (special topic) 70 71
project, and was praised by the local government and the masses. In recent years, Guizhou Airline has organized 14 enterprises to conduct the activity “Ten thousand party branch paired, ten thousand party members assisted” with the 14 state-level poverty-stricken villages in 7 counties (districts) in the province, which started the work of more large-scale integrating into the regional economy and fulfilling social responsibility.
AVIC volunteer visits the sponsorship student
In the long process of helping the poor, Guizhou Airline of AVIC concerned the new problem of stay- at-home children dropping out the school and lacking of love. Guizhou Airline volunteers launched a sponsorship action “Parents’ love”. They chose poor dropout children for volunteers to “adopt” according to their own economic conditions, providing 100 yuan per month to the sponsorship children, and often write to and visit them, so as to make the poor stay-at-home children to go back to school due to the relief, and get mental health growth due to the AVIC leader’s visit of Pitaya Poverty Alleviation Project love and care.
The key of AVIC volunteers’ loving action is not the donation amount, but the true love and care to the (II) Sponsorship and Assistance – “Parents’ Love” stay-at-home children.
The problem “Stay-at-Home Children” is an emerging one encountered in poverty On June 9, 2015, four stay-at-home alleviation in recent years. In addition to financial support, the children need more of children committed suicide by taking psychological care. And the poverty alleviation and student assistance done by AVIC pesticides in Bijie, Guizhou. That is not the has been adhered to, by means of long-term practices, has been gradually expanded first occurrence of such similar incident in Love links: and deepened, having touched people’s hearts. Bijie. In 2012, five children died of carbon As long as RMB100 per month, you can change a poverty-stricken child’s life, monoxide poisoning when they refuged If you have been motivated, please contact the following volunteers: Guizhou Airline Poverty Alleviation and “Parents’ love” themselves in a garbage can and started Action fire to warm themselves at a rainy night; AVIC YU Ning: in 2014, twelve girls were raped by a Mobile phone 18611196234 In 1993, Guizhou Airline of AVIC was commissioned by the former AVIC I, to conduct teacher, of which the youngest was only 8 the party construction and poverty alleviation in the 4 relative poor counties, including years old...... without exception, they are QQ 375420626 Zhenning, Guanling, Puding, Ziyun. In recent 20 years, Guizhou Airline has invested all lacked of happy childhood as peers poverty alleviation funds over 30 million yuan in terms of the culture, education, health, in cities and did not have basic life care breeding, cultivation, transportation, water conservancy and renovation of dilapidated and spiritual care because their parents buildings, etc., combining with practice, carried out some effective work based on the worked in other places all year round. Retrospect and Prospect 72 73 Retrospect and Prospect 74 75
In 2014, AVIC carried out the “Year of Management Reform” activity in a deep-going way to overcome difficulties incurred by the economic downward pressure and made new achievements in various tasks. It has fulfilled social responsibilities properly in concert with the pace of development.
New breakthrough has been made in aviation equipment R&D; new achievements have been made in civilian industrial development; new breakthrough has been made in overseas M&A and operations; solidification and growth have been achieved in operating results; related market responsibilities have been well fulfilled, and expectations of others have been well responded.
Management in terms of safety and quality has been enhanced to build and maintain the intrinsically safe and reliable aviation industry manufacturing system; continuous promotion of enterprise management according to the law and compliance operations has been carried out; the development of anti-corruption and the construction of four undesirable working styles have been advanced; management improvement has been promoted in all aspects by implementation of AVIC Operation System (AOS), strengthening of innovation-driven roles, and transformation of scientific and technical achievements, to lay a foundation of self-discipline and innovative responsibility to fulfill social responsibilities.
AVIC cares about its employees, conducts local investment, pays tax by law, returns to the society and actively leads and participates in various community benefit activities, in which AVIC plays a positive role and makes should due contributions, in China and foreign countries, and effectively fulfills its responsibilities in the communities.
In terms of environmental responsibility, it continues to devote itself to adjustment of internal economic structure and development of green economy, saving energy, vigorous development of new energy and green health industries to promote the transformation of the macro-economy in its own development and upgrading way, and to play its won role in environmental protection and sustainable economic and social development.
In 2015, AVIC will promote “running enterprise according to law” in all respects by holding onto the law- based construction. In terms of social responsibility fulfillment, AVIC shall determine to accomplish research and production tasks, expedite the implementation of civil aviation industry and expand the development blueprint of civilian industries with the emerging aviation industries as breakthrough; to push forward soundly the development of an innovative group based on technology innovation; to enhance the operation and management control capabilities by the driving force of deepening the reform; to implement all requirements of a law-based enterprise by the starter of running the enterprise according to law; to strengthen comprehensive risk management, adhere to promotion of the construction of a clear and honest organization, talent teams and culture depending on the mainline of secured development. In terms of social responsibility management, AVIC shall plan and set up AVIC socially responsible funds to guide and build more projects that can show the image of AVIC’s overall fulfillment of its social responsibilities, to support the group and member organizations to undertake the social responsibility as central enterprises and establish the image of good corporate citizens.
AVIC Chairman, Lin Zuoming said: “Vision determines altitude; responsibility creates value!” An enterprise with a sense of responsibility is of more growth potential. AVIC will regard social responsibilities as an powerful engine to promote its healthy development and shoulder responsibilities and advance forward in great strides on the way of achieving the China Dream! Appendix 76 77
Expert Evaluation Comparison table of GRI indicators
Disclosure standard of general information 2014 Corporate Social Responsibility Report released by AVIC completely discloses the Company’s responsibilities to shareholders, Reference Category Content of indicator customers, employees, environment and community, and related stakeholders, as well as critical issues concerned in respects of safety, location quality, energy saving, etc. in a systematic manner, which fully embodies AVIC’s concept of social responsibilities, “Heart as Wing the and Fly Strategy and analysis with Dream”, and its achievements made by active fulfillment of its social responsibilities. The declaration made by organization top decision-makers (such as CEO, Chairman or persons at equivalent senior G4-1 positions) on the relevance between the sustainable development and the organization, and the organization’s P8-9 sustainable development strategy The report also shows the Company’s social responsibilities and public benefit charitable responsibilities in foreign countries in unique G4-2 Describe main impacts, risks and opportunities P8-9 manners of the two special topics “AVIC Going Global” and “Reading Sounds in Mountains”, which fully illustrates that, AVIC is an eligible Introduction to the organization G4-3 Name of organization About the Report and excellent global citizen and corporate citizen. G4-4 Primary brands, products and services P1, P18-33 G4-5 Location of organization’s headquarters P1 Another highlight of the report lies in the plain language, which vividly demonstrates that, on one hand, AVIC protects national security, The number of countries and what countries the organization operates in, or which counties have close relations with G4-6 P57 purses the dream of peace, and safeguards the economic development, and on the other hand, closely connected with people’s daily lives, the sustainable development topic set forth in the Report G4-7 The nature and legal form of ownership P1 it also vigorously promotes the development of civil industries and serves people’s livelihood by means of its advantages in aviation high-tech The market the organization serves (including region segmentation, types of service-related industries, types of G4-8 P1, P30 and aviation manufacturing systems. customers/beneficiaries) Size of the organization, including number of employees, number of operational sites, net sales amount (applicable G4-9 to private sectors) or net income (applicable to public bodies), total market capitalizations by debt and by equity P1, P17 Generally speaking, the report is developed with comprehensive issues, detailed content and distinctive features. AVIC is expected to (applicable to private sectors), quantity of provided products or services consolidate, innovate and develop continuously by the opportunity of 2014 CSR Report to establish a new benchmark for the sustainable Total numbers of employees divided by labor contracts and sexes P46 development of the industry and to become a leader of Central enterprises in respect of social responsibilities. Total number of permanent employees divided by labor contracts and sexes P46 Total numbers of employees divided by formal employees, informal employees and sexes P46 Total number of employees divided by regions and sexes P46 Deng Guosheng G4-10 Whether work of the organization is mostly undertaken by legally self-employed employees, or by non-employed and N/A Professor, Director of Innovation and Social Responsibility Research Center, informally-employed individuals (including contractor’s employees and informal employees) Significant changes in the number of employed individuals (such as seasonal changes in numbers of employees School of Public Policy & Management, Tsinghua University N/A engaged in tourism or agriculture) G4-11 Percentage of the total number of employees included in collective bargaining agreement N/A G4-12 Describe supply chains of the organization P41 Significant changes of organization size, structure, ownership or supply chain during the reporting period, including operation sites or business transformations, the start-up, closing and expansion of plants; changes in equity structure, G4-13 N/A constitution and retention of capital, and business changes (applicable to private sectors); changes in supplier locations, institutions of structure chain and relationships with suppliers (including selection and termination) G4-14 Whether and how to act based on early warning guidelines and principles P35-37, P51 Organization-involved or -supported economic, environmental and social conventions, principles and other initiatives G4-15 About the Report launched by external organizations or individuals For associations (trade associations) and national or international initiative organizations the organization serves as a member and holds a seat in their governance bodies, participates in any project or committee, and provides G4-16 P12 large amounts of financial supports in addition to paying membership dues, such membership shall be regarded of possessing strategic significance Substantial aspects and boundaries identified All entities included in the listed organization’s consolidated financial statements or other equivalent documents P1 G4-17 Describe whether there is any entity (included in consolidated financial statements or other equivalent documents) N/A failing to include sustainable development report Describe the process of defining boundaries for report contents and aspects Not Adopted G4-18 Describe how the organization will apply the “Reporting Principles for Defining Report Contents” Not Adopted G4-19 List of all substantial aspects identified in the process of defining report contents Not Adopted G4-20 List of each substantial aspect with describe the boundary for internal aspects Not Adopted G4-21 List of all substantial aspects with describe the boundary of external aspects Not Adopted G4-22 Describe impacts by information contained in the reformulated previous report and reasons for such reformulation N/A Describe significant changes in terms of scope and boundary of aspects and changes during the previous reporting G4-23 N/A period Appendix 78 79
Disclosure standard of general information Disclosure standard of general information Reference Reference Category Content of indicator Category Content of indicator location location Involvement of related stakeholders Describe remuneration policy of the top governance body and executives Not Adopted G4-24 List of related stakeholders of the organization P12 G4-51 Describe how the performance standard in remuneration policy associates with the economic, environmental and Not Adopted G4-25 Describe identification and selection basis with regard to selected stakeholders P12 social objectives of top governance body and executives How stakeholders are involved, including different types and groups of stakeholders and frequency of their G4-26 P12 Describe the remuneration determination process. Describe whether there is a remuneration consultant participating in involvement with describe whether there is any involvement for preparation of the Report G4-52 the determination, and whether they are independent of management. Describe whether there is any other relationship Not adopted Key topics and concerns proposed in the process of stakeholders’ involvement, how the organization responds, between the compensation consultant and the organization. G4-27 P12, P16 including report response. Describe groups of stakeholders that propose each topic and concern Describe how to consult and consider stakeholders’ view on compensation, including the remuneration policy and G4-53 Not adopted Report profile results of proposal voting, if applicable G4-28 Reporting period of information provided (such as fiscal year or calendar year) About the Report Each country in which the organization has important business operation, the ratio of highest paid individual annual G4-54 Not Adopted G4-29 Dates of previous reports (if any) About the Report total income and all the other employees’ (excluding the highest-paid person) total average annual income G4-30 Reporting period (such as once a year, every two years) About the Report Each country in which the organization has important business operation, the ratio of highest paid individual annual About the Report, G4-55 total income growth and all the other employees’ (excluding the highest-paid person) total average annual income N/A G4-31 About the Report or contact person of report contents back cover growth Describe “conforming” program selected by organization (core or comprehensive) About the Report Integrity and ethics Describe GRI content index for the selected program P72-77 G4-31 G4-56 Describe value, principle, standard and codes of conduct, such as the rules of conduct and ethics P1 Cite external verification reports if the Report has received any external verification. External verification is P78 Seek internal and external mechanisms of moral and legal behavior recommendations, and the things related to the recommended by GRI but does not constitute the requirement to “conforming” the guideline G4-57 P12, P42-45 integrity of the organization, such as a helpline or advice hotline Policies and current practices the organization seeks external verifications for the Report P78 Internal and external mechanisms of reporting unethical or illegal behaviors, as well as the matters related to the If not listed in the verification report contained in the Report, you need to specify the scope and basis of any external G4-58 Not Adopted N/A verification provided integrity of the organization, such as reporting by the line manager step by step, reporting mechanism or hotline G4-33 Describe relations between the organization and verification service provider P78 Economy Describe whether the top governance body or senior management involved in seeking verification for sustainable G4-EC1 Direct economic value generated and distributed by the organization P17 Not Adopted report G4-EC2 Financial implications, risks and opportunities generated from the climate change on agency activities Not Adopted Governance G4-EC3 The covering degree of organization fixed-income pension funds Not Adopted The organization’s governance structure, including committees under the top governance body. Describe committees G4-34 Not Adopted responsible for decision-making that many impose economic, environmental and social impacts G4-EC4 Financial subsidies given by the government Not Adopted Describe the process the top governance body authorizes executives and other employees to manage economic, G4-EC5 Ratio of gender wage of starting salary and the local minimum wage in important operational places Not Adopted G4-35 P10, P16-P17 environmental and social issues G4-EC6 Ratio of local executives hired by the organization in important operational places N/A Whether the organization has assigned administrative-level executives to be responsible for economic, environmental G4-36 Not Adopted and social issues, and whether they report directly to the top governance body G4-EC7 The condition and the impact of conducting infrastructure investment and support services Not Adopted Consultation process between stakeholders and the top governance body on economic, environmental and G4-EC8 Significant indirect economic impacts, including the extent of impacts P20-33 G4-37 social issues. In case of authorized consultations, describe authorization objects and feedback process to the top P16-P17 G4-EC9 In important operational places, the proportion of procurement expenditure from local suppliers N/A governance body Environment G4-38 Describe composition of the top governance body and its committees Not Adopted Whether chairman of the top governance body serves as an executive officer concurrently (if any, describe his G4-EN1 Weight or volume of used materials Not Adopted G4-39 Not Adopted management functions in the organization and reasons for such assignment) G4-EN2 Percentage of recyclable materials Not Adopted Nomination and selection process of the top governance body and its committees, and the conditions for nomination G4-40 Not Adopted G4-EN3 Energy consumption within the organization Not Adopted and selection of the top governance body members G4-EN4 Energy consumption outside the organization Not Adopted The top governance body’s procedures to ensure avoid and control conflicts of interest, whether to disclose conflicts G4-41 Not Adopted of interest to stakeholders G4-EN5 Energy intensity P52, P54 Roles of the top governance body and executives in terms of development, approval, renewal and purposes, values or G4-42 Not Adopted G4-EN6 Reduction of energy consumption P52, P54 missions, strategies, policies, and objectives in connection with economic, environmental and social impacts G4-EN7 Reduction of the energy required in the products and services P52, P54 Measures taken to strengthen the top governance body’s collective understanding of economic, environmental and G4-43 Not Adopted social topics G4-EN8 Total water consumption explained by the source Not Adopted Process of evaluating the performance of the top governance body managing economic, environmental and social G4-EN9 Headwaters materially affected by water taking Not Adopted issues. Whether such evaluation is carried out independently, and how about the frequency. Whether it is self- Not Adopted evaluation G4-EN10 The percentage and total amount of circulation and reuse water Not Adopted G4-44 The owned, leased or managed operating point of the organization in conservation areas or other areas of significant Measures taken for the performance evaluation of the top governance structure’s measures for management of G4-EN11 N/A economic, environmental and social issues shall include change in membership and organizational management at Not Adopted biodiversity value or adjacent areas least In terms of organization activities, products and service in biodiversity, there is a significant impact in conservation Role of the top governance body in terms of identification and management of economic, environmental and social G4-EN12 N/A Not Adopted areas or other areas of significant biodiversity value impacts, risks and opportunities. Including the role of the top governance body to implement due diligence G4-45 G4-EN13 Protected or restored habitats N/A Whether to use stakeholder’s consultations to support the top governance body’s identification and management of Not Adopted economic. Environmental and social impacts, risks and opportunities According to the endangered risk level, describe the total number of species included in the International Union G4-46 Role of the top governance body in assessing rick management of economic, environmental and social issues Not Adopted G4-EN141 for Conservation of Nature (IUCN) Red List and national protection list whose habitat affected by the organization N/A operation G4-47 Frequency of the top governance body to assess economic, environmental and social risks and opportunities Not Adopted G4-EN15 Direct greenhouse gas emissions (Category I) P52, P54 Formal review and approval of the organization’s sustainable development report and make sure such report covers G4-48 Not Adopted top committees or positions in all substantial aspects G4-EN16 Energy indirect greenhouse gas emissions (Category II) Not Adopted G4-49 Describe the process of communicating important concerns with the top governance body Not Adopted G4-EN17 Other indirect greenhouse gas emissions (Category III) Not Adopted In terms of communicating important concerns with the top governance body, describe the properties and the total G4-50 Not Adopted G4-EN18 Greenhouse gas emission intensity P52, P54 number, as well as the processing and settlement mechanism taken Appendix 80 81
Disclosure standard of general information Disclosure standard of general information Reference Reference Category Content of indicator Category Content of indicator location location G4-EN19 Reduction of greenhouse gas emissions P52, P54 Human rights G4-EN20 Emissions of ozone-depleting substance (ODS) Not Adopted The total number and percentage of important investment agreements and contracts with clauses about human rights G4-HR1 Not Adopted or under human rights review G4-EN21 Emissions of nitrogen oxides, sulfur oxides and other major gases P52, P54 The total number of hours of employee training and percentage of such trained employees as per operation-related G4-EN22 The total amount of sewage water classified by the water quality and discharge destination Not Adopted G4-HR2 Not Adopted human rights policies and procedures G4-EN23 Total weight of waste classified by category and treatment Not Adopted G4-HR3 The total number of incidents of discrimination as well as corrective actions taken by the organization N/A G4-EN24 Total number and amount of serious leakage N/A Identified operation site or supplier that may violate or seriously compromise the freedom of association and collective The transportation, input, output or processed weight of hazardous waste defined by the Appendix I, II, III, VII of Basel G4-HR4 N/A G4-EN25 N/A bargaining, as well as actions to support these rights Convention, and percentage of hazardous waste shipped outside Identified operation site and supplier that have serious risks of child-labor employment and measures to effectively The water body seriously affected by the organization sewage and other (surface) runoff discharge, and the position, G4-HR5 N/A G4-EN26 N/A eliminate employment of child labor area, protection status and biodiversity values of related habitats Identified operation site and supplier that have serious risks of forced or compulsory labor events, as well as measures G4-HR6 N/A G4-EN27 Reduce the degree of the environmental impact of products and services P52, P54 to contribute to the elimination of all forms of forced or compulsory labor G4-EN28 Percentage of recovery-based sold products and their packaging materials by categories descriptions Not Adopted G4-HR7 Percentage of security personnel trained in operation-related human rights policies and procedures Not Adopted G4-EN29 Amount refined due to violations of environmental laws and regulations as well as frequency of non-financial penalties N/A G4-HR8 The total number of incidents involving violations of indigenous rights, and actions taken by the organization N/A Significant environmental impacts caused by transportation of products, other goods and materials for operation of G4-EN30 Not Adopted G4-HR9 The total number and percentage of operation sites under receiving human rights review or impact assessment Not Adopted the organization G4-HR10 The proportion of new suppliers selected by human rights standards Not Adopted G4-EN31 Total environmental protection expenditures and investments by categories description P17 G4-HR11 Significant actual and potential adverse impacts on human rights of supply chain, as well as measures taken Not Adopted G4-EN32 Proportion of new suppliers selected by environment standards Not Adopted Number of complaints in terms of human rights impacts that have been submitted, processed and resolved through G4-HR12 Not Adopted G4-EN33 Significant actual and potential adverse impact on the environment of supply chain, as well as measures taken Not Adopted formal mechanism Number of complaints in terms of human rights impacts that have been submitted, processed and resolved through G4-EN34 N/A Community formal mechanism Ratio of operation sites that have implemented local community-involved impact assessment and development G4-SO1 Not Adopted Labor practices and decent work programs G4-LA1 The proportion of the total number of new hires and employee turnover by age groups, sexes and regions P46 G4-SO2 Operational sites with significant actual and potential adverse impacts on the local community Not Adopted G4-LA2 Benefits available to full-time employees only, not to temporary or part-time employees by important operational sites N/A Percentage and total number of operation sites that have conducted corruption risk assessment, as well as major risk G4-SO3 Not Adopted G4-LA3 The proportion of returning to work and holding the job after maternity/paternity leave, by sexes Not Adopted identified Minimum notice period on re-operating changes, including whether description is specified in the collective agreement G4-SO4 Communication and training of anti-corruption policies and procedures P43-44 G4-LA4 N/A during the notice period G4-SO5 Identified incidents of corruption and actions taken N/A The percentage of employees that can help with employee supervision and assessment of health and safety-related G4-LA5 Not Adopted G4-SO61 Total amount of political donations by countries and recipients/beneficiaries Not Adopted projects, from the Occupational Health and Safety Committee established by both the labor and the management G4-SO7 Anti-competitive behavior, anti-trust and monopoly practices and their outcomes total number of legal actions N/A Categories of occupational injury, occupational injury, occupational diseases, proportion of lost labor and absenteeism, G4-LA6 P4 Amount refined by serious punishments due to violation of laws and regulations as well as frequency of non-financial and the number of death in line of duty by regions and sexes G4-SO8 N/A penalties G4-LA7 Workers engaged in the positions with high occupational vocational diseases or highest occupational risks P46 G4-SO9 Proportion of new suppliers selected by social impact standards Not Adopted G4-LA8 Health and safety issues in formal agreements with the labor union Not Adopted G4-SO10 Significant actual and potential adverse impacts on the society of supply chain, as well as measures taken Not Adopted G4-LA9 Average number of hours of each employee receiving training per year by sexes and employee categories P46 G4-SO11 Number of complaints of social impacts that have been submitted, processed and resolved through formal mechanism N/A Skills management and lifelong learning programs to strengthen continued employability and assist employees to G4-LA10 Not Adopted Product responsibility manage career termination The percentage of important product and service categories under health and safety assessment with the purpose of G4-LA11 Percentage of employees receiving regular performance and career development appraisal by sexes and categories Not Adopted G4-PR1 Not Adopted improving current situations Composition of employees in the governance body and other employees by sexes, age groups, minority groups and G4-LA12 Not Adopted The total number of events violating laws and regulations as well as voluntary guidelines (within the life periods of other diverse indicators G4-PR2 N/A products and services) in terms of product and service health and safety by categories description of consequences G4-LA13 Male and female ratio of basic salary and remuneration by employee categories and important operation sites N/A Information categories of products and services that are required to be with product and service information and G4-LA14 The proportion of new suppliers selected in accordance with standard labor practices Not Adopted G4-PR3 identification by the organization and percentage of important products and services in line with such information Not Adopted G4-LA15 Significant actual and potential adverse impacts on the labor practices of the supply chain, as well as measures taken Not Adopted requirements The total number of violating laws and regulations as well as voluntary guidelines in terms of product and service G4-LA16 Number of labor complaints that have been submitted, processed and resolved through the formal mechanism N/A G4-PR4 N/A information and identification by categories description of consequences G4-PR5 Results of customer satisfaction surveys P40-41 G4-PR6 Sales of sales-banned or disputed products N/A Total number of incidents in violation of relevant marketing (including advertising, promotion and sponsorship) laws G4-PR7 N/A and regulations as well as voluntary guidelines by categories of consequence G4-PR8 The total number of complaints that have justified breaches of customer privacy and losses of customer information N/A If any violation of relevant laws and regulations in terms of provision of products and services, describe the total G4-PR9 N/A amount of significant fines concerned Appendix 82 83
《中国航空工业集团公司 2014 年社会责任报告》评级报告 Social Responsibility Report Feedback (This page can be torn down to mail) 中国社会科学院经济学部企业社会责任研究中心（以下简称“中心”）受中国航空工业集团公司委托，从“中国企业社会责任报告评级专 家委员会”中抽选专家组成评级小组，对《中国航空工业集团公司 2014 年社会责任报告》（以下简称《报告》）进行评级。 Dear Readers: 一、评级依据 Thanks for reading the Report! To provide you with more subsequent valuable information on social responsibilities and promote 《中国企业社会责任报告编写指南（CASS-CSR 3.0）》暨《中国企业社会责任报告评级标准（2014）》。 sustainable improvement of the Report, please help us fill the following feedback form, and send to us by using one of the 二、评级过程 following ways (state Social Responsibility Report Feedback):
1. 过程性评估小组访谈中国航空工业集团公司社会责任相关部门成员； ★ E-mail: [email protected] 2. 过程性评估小组现场审查中国航空工业集团公司社会责任报告编写过程相关资料； ☆ Mail: Mailing address: Social Responsibility of the Group, AVIC Building, No. 128 Jianguo Road, Chaoyang District, Beijing City, 3. 评级小组对社会责任报告的管理过程及《报告》的披露内容进行评价。 postcode: 100022 三、评级结论 ☆ Tel or fax: Tel: 010-58356041 Fax: 010-58356979 过程性（★★★★☆） 1. Your overall assessment on the Report (select and scoring) 集团综合管理部社会责任处牵头成立报告编写组，高层领导参与编写推进及报告审定；编写组对利益相关方进行识别，并根据公司发展战 □ Satisfied, points (90-100) □ Relatively satisfied, points (80-89) □ Generally satisfied, points (70-79) 略、国家相关政策、行业对标分析及舆论热点等对实质性议题进行界定；拟定召开专项发布会，并将以印刷品、多语种版本、H5 版本等 □ Less satisfied, points (60 to 69) □ Dissatisfied, points (0 to 59) 形式呈现报告，具有领先的过程性表现。 2. Please scoring for AVIC’s fulfillment of social responsibilities in the following form 实质性（★★★★★） 《报告》系统披露了“贯彻宏观政策”、“客户关系管理”、“产品质量管理”、“产品科技创新”、“职业健康安全管 理”、“安全生产”、 Relatively Generally “环保技术和设备的研发与应用”等特种设备制造业关键性议题，叙述详细充分，具有卓越的实质性表现。 Satisfied satisfied satisfied Less satisfied Dissatisfied 完整性（★★★★） Item (90-100 points) (80-89 points) (70-79 points) (60-69 points) (0-59 points) 《报告》从“蓝天上的中航工业”、“我们身边的中航工业”、“安全优质的中航工业”、“律己担当的中航工业”、“绿色发展的中航 Market responsibility (Responsibility for customers, 工业”等方面披露了特种设备制造业核心指标的 71.7%，完整性表现优秀。 shareholders, and partners) 平衡性（★★★☆） Social Responsibility 《报告》披露了“安全生产事故数”、“员工流失率”、“职业病例数”等少量负面数据，平衡性有待提高。 (Responsibility for employees, 可比性（★★★☆） government, and community) 《报告》披露了“安全生产投入”、“民机出口收入”等 15 个关键绩效指标连续 3 年以上的历史数据，并就“财富企业 500 强排名”进 Environmental Responsibility (Environmental management, 行横向比较，可比性需进一步加强。 energy conservation, and pollution 可读性（★★★★★） and emission reduction) 《报告》框架合理，语言生动，专题深入；使用丰富的图片、表格等表现形式，与文字叙述相辅相成，设计凸显行业特色，配色清新大气， 3. Do you think that the Report could display the main situation of AVIC to fulfill market responsibility, social responsibility, the 具有卓越的可读性表现。 responsibility 创新性（★★★★★） □ good display, scoring (90 – 100 points) □ better display, scoring (80 – 89 points) 《报告》在篇末设置“走向世界的中航工业”及“大山里的读书声”专题，详细阐述了企业在海外及公益方面的履责情况，内容深入且生 □ general display, scoring (70-79 points) □ less satisfied, scoring (60-69 points) □ dissatisfied, scoring (0-59 points) 动；多处以“延伸阅读”、“回响”、“链接”等方式展开叙述，便于相关方进一步了解，创新性表现卓越。 综合评级（★★★★☆） 4. How do you think the performance report in the following aspects 经评级小组评价，《中国航空工业集团公司 2014 年社会责任报告》为四星半级，是一份领先的企业社会责任报告。 Relatively Generally 四、改进建议 Satisfied satisfied satisfied Less satisfied Dissatisfied Item (90-100 points) (80-89 points) (70-79 points) (60-69 points) (0-59 points) 1. 增加企业历史关键数据的披露，提高报告的可比性。 2. 增加负面数据及负面事件分析的披露，提高报告的平衡性。 Topic selection 评级小组 Logic thread 组长：中国社科院经济学部企业社会责任研究中心主任 钟宏武 Case content 成员：中国企业公民委员会副会长 刘卫华 Languages and words 北京工商大学经济学院教授 郭毅 评级专家委员会主席 评级小组组长 Layout design 中心过程性评估员 王志敏、林旭 中心常务副理事长 中心主任 5. What do you think you need to know the information that does not be reflected: . 出具时间：2015 年 6 月 29 日 6. What are your suggestions for our future preparation of the Report? . Appendix 84
7. Please select the best topic and content of the Report in your opinion (click”√” in the corresponding position, one optional only)
Topics and content catalog Page Vote for best topic and content Description I. AVIC in Blue Sky 18 – (I) Eagle Soaring in Sky, Cruise for Peace 19 (II) Pigeon Singing in Blue Sky, Add Wing for the Development 21 II. AVIC around Us 24 – (I) Be with Each Other’s Neighbor, Anyone Knows You 26 (II) Not in the Cloud, But in Your Life 30 III. AVIC with Safety First 34 – (I) AVIC in pursuit of safety 35 (II) AVIC manufacturing with Reliable Quality 38 IV. Self-discipline and Responsible AVIC 42 – (I) Self-Discipline, Law-Abiding, Innovative and Aggressive 43 (II) Care for Employees and Return to Society 46 V. AVIC with Green Development 50 – (I) Construction of environmental management system 51 (II) Development of Low-Carbon Eco-Industries 52 (III) Carry Out Energy Conservation Actions 54 VI AVIC Going Global (Special Topics) 56 – (I) AVIC Abroad 57 (II) The Philosophy – Localization 60 (III) Sincere and Friendly Global Citizens 62 VII. Reading sounds in Mountains (Special Topics) 66 – (I) The “Blue Chalk” of teacher recruitment and supporting education 67 (II) Sponsorship and Assistance -”Parents’ Love” 68
8. Which channels do you access to get and read the Report? □ Downloaded from AVIC website □ Receive a paper version □ Forwarding in your Circle of Friends □ Others (please specify appropriately)
9. Relationship between you and AVIC can be defined as which one of the following: □ Internal employee □ Customer □ Supplier □ Central or local government □ Community organizations □ Investor □ Creditor □ Investment partner □ Social public □ Other status (please specify appropriately)
10. Please fill in the following information and we will give full consideration to your comments and suggestions; we will thank you and respond in an appropriate manner, and promise to protect your information properly from being accessible to third parties:
Name: Phone: E-mail:
Mailing address:
Thanks again for your help!
Developed by CSR Department, Aviation Industry Corporation of China June 2015 About the Report 84 85
The Report is the fifth CSR report released by Aviation Industry Corporation of China.
For ease of presentation and reading, “Aviation Industry Corporation of China” may also be expressed by “AVIC” “the Corporation” and “we/us”.
Organizational Scope of the Report
The Report covers the headquarters and all units affiliated to Aviation Industry Corporation of China.
Time Scope of the Report
January 1 – December 31, 2014. Taking into account the continuity and comparability of information disclosure, part of the information may be extended appropriately prior to or after the Scope of Time.
Reporting Period
The Report is an annual report. The last report was released on December 5, 2014.
Reference Guidelines for Preparation of the Report
The Report is developed in accordance with relevant requirements of Guidelines on the Central Enterprises’ Fulfillment of Corporate Social Responsibility and “Twelfth Five-Year Plan” Harmonious Development Strategy Outline for Central Enterprises released by State-owned Assets Supervision and Administration Commission, with reference to Sustainability Reporting Guidelines (Version G4.0) released by Global Reporting Initiative (GRI), ISO26000 Guidance on Social Responsibility and Corporate Social Responsibility Reporting Guidelines for Chinese Enterprises (CASS-CSR3.0) released by International Standard Organization, and combined with actual situations of Aviation Industry Corporation of China.
Language Version
The Report is released in both English and Chinese versions, and the Chinese version shall prevail in case of any discrepancies.
Release Form of the Report
The Report is provided paper and electronic forms. Please visit our web site (www.avic.com.cn/) to download the electronic version. For the paper version of the Report, please send an e-mail to [email protected] or call 8610-58356041 for obtaining.
Wechat lovers can scan the Wechat number to follow AVIC, where you may download a HTML5-format Simplified Report and keep abreast of our fulfillment of responsibilities..
Official Wechat of AVIC