Stay True to Original Intentions, and Keep the Mission in Mind – Building an Air Power in the New Era
Modern enterprises are the cells of a society, while society is the matrix within which enterprises grow. Therefore, while developing, an enterprise should act as a good “corporate citizen”, be grateful for favors received, and repay society, which is the social responsibility of an enterprise, and also an important factor in building a harmonious society. The majority of enterprises need to maintain self-discipline and self-respect, establish a scientific operation philosophy, rationalize internal and external relations, and strive to become responsible “corporate citizens” to guide the enterprise to develop and grow stronger and put it on the track of harmony and health.
—— Quotations from President Xi CONTENTS
04 About Us 06 Address from the Chairman
Promote Responsible Management
10 The Concept and Model of Responsibility 11 Corporate Governance Optimization 12 Communication Methods of Stakeholders 16 Practice of Responsible Management
Serving the Country • Aviation
22 Serving the Country through Industry 26 Making the Armed Forces Powerful and Serving the Country Responsibility • Aviation
[•••] Managing Enterprises According to Law, Legislating Responsibility [•••] Green Aviation, Environmental Responsibility [•••] Health Quality, Safety Responsibility
Innovation • Aviation
48 Independent Efforts, Technological Innovation 50 Deepening Reform, Management Innovation
Finesse • Aviation
56 Aviation Glory, Employee Finesse 62 Help Those in Need and Distress, Finesse in Public Welfare 68 Global Citizen, Finesse Overseas About Us
Aviation Industry Corporation of China,Ltd (hereinafter referred to as “Aviation Industry”) is a large state-owned enterprise managed by the central government as well as a state authorized investment institution, and was established through restructuring integration of the original AVIC I and AVIC II on November 6, 2008. The Group Company mainly engages in such industries as aviation weapons equipment, military transport aircraft, helicopters, AVIC Industry airborne systems, auto components and parts, general aviation, aviation research, flight testing, the aviation supply chain, asset management, finance, engineering construction and automobiles. It oversees more than 100 member units and 27 listed companies and is home to over 450,000 employees. The Group Company has entered The Fortune Global 500 list for 9 consecutive years, ranked the 162nd in 2017, in the forefront of aeronautics and astronautics and defense sectors, and was selected for Fortune’s 2017 Most Admirable Chinese Company Industry Star List.
The Group Company has appeared on
The Fortune Global 500 list for 9 consecutive years
Ranked 162nd in 2017
2017’s Most Admirable Chinese Company Industry
In the field of military aviation, Aviation Industry serially develops military aircraft, including fighter planes, fighter bombers, bombers, transport aircraft, training planes, reconnaissance planes, helicopters, attack aircraft and unmanned aerial vehicles, comprehensively researches and develops the air-to-air, air- to-surface and ground-to-air missiles and carries out the airborne system development and aviation technology research and testing which provides advanced aviation weapon equipment for national defense security.
In the civil aviation field, Aviation Industry independently develops the “MA” series regional aircraft, AC series civilian helicopters, AG series aircraft, Y-12 series aircraft and Eaglet 500, Seagull 300 and SF50 light business jets, Cirrus series general aircraft and “Sparrow Hawk” civilian unmanned aerial vehicles, and carries out the aviation subcontracting production business which provides advanced civil aviation products for domestic and international customers, while also devoting ourselves to the development of the general aviation industry.
In the non-aeronautical civilian products and modern service fields, Aviation Industry adheres to uniformity in technical expertise, centralized industrial organization and synchronized values in its vision for military-civilian integration, in its advancement of an “informationization and industrialization merger,” in its integration of high-tech aviation high-tech with the civil field, development of smart devices, auto components, LCD and electronic components and other industries, and of such modern service industries as financial investment, engineering construction, aviation creative economy and Internet applications, which provide society with high-end equipment and the impetus for innovation, promote national smart manufacturing, support the development of aviation industry and serve the social masses.
04 Aviation Industry Corporation of China, Ltd. ORGANIZATIONAL STRUCTURE
AviChina Industry & Technology Company Limited (H) Aviation Industry Corporation of China
Strategy and Investment Committee The Board of Supervisors
Nomination and Corporate Governance Committee The Board of Directors
Remuneration and Appraisal Committee The Management Committee
Audit and Risk Management Committee The Middle Management Personnel
Special Entity Planning and Development Department Planning and Accounting Department Scientific and Technological Quality Integrated Management Department Civil Aircraft Industrial Department Industry Development Department Industry Party Construction, Ideology and Capital Management Department International Affairs Department Human Resources Department Retirees Management Center Audit and Legal Department Defense Affairs Engineering Disciplinary Inspection and Disciplinary Political Policy Department Supervision Department Supervision Department Department AVIC Helicopter Limited Liability Company China Aviation Manufacturing Technology AVIC Mechanical and Electrical Systems AVIC Aircraft Limited Liability Company China Aviation Technology International AVIC Capital Holding Company Limited AVIC General Aircraft Limited Liability China Aviation Planning and Design Research General Institute Co., Ltd. China Flight Test Research Institute AVIC Technology Import and Export AVIC Assets Management Co., Ltd. China Aviation Research Institute AVIC Avionics System Company Direct Function Units (6 units) Direct Business Units (10) Limited Liability Company Direct Controlled Unit (1) Limited by Shares Research Institute Holding Co., Ltd. by Shares Company Co., Ltd.
2017 Social Responsibility Report 05 Leadership Speech
06 Aviation Industry Corporation of China, Ltd. In 2017, the construction of uniquely Chinese socialism While practicing the primary responsibility of serving the entered a new stage of transformation and upgrading. With country and “making the armed forces powerful” through the successful convening of the 19th National Congress aviation, we advocate weight reduction and physical of the CPC, Xi Jinping Thought on Socialism with Chinese fitness, insist on innovation and surpassing, and have taken Characteristics for a New Era established its guiding position economic responsibility for preservation and appreciation. We in the Party, which pointed out the direction for the Party and realized a full-year profit of RMB16.55 billion, outperforming the state cause development. Under the solid leadership the assessment indicator of SASAC of the State Council. of the Party Central Committee led by Xi Jinping, Aviation We insist on the development philosophy of military-civilian Industry deeply learns and practices Xi Jinping Thought on integration, achieve remarkable results in scientific research Socialism with Chinese Characteristics for a New Era and the and production of civil aircraft, and produce marked effects spirit of the 19th National Congress of the CPC, and actively in industry expansion and international development. While fulfills its political, economic and social responsibilities, which guaranteeing political responsibility and executing economic manifests the important role of the “six strengths” of state- responsibility, we actively fulfill responsibilities, work owned enterprises and makes great contributions to the diligently, providing aid within the company to employees realizing of the dreams of aviation dream and a powerful during emergencies and financial hardship, and organizing nation. The Group Company has appeared on the Fortune voluntary activities and public welfare campaigns externally. Global 500 list for 9 consecutive years and the Most We vigorously carry out poverty alleviation actions, and truly Admirable Chinese Company Industry Star List. take on social responsibility appropriate for a large state- owned enterprise managed by the central government. Being absolutely loyal to the Party, bearing the original Responsibility leads to growth, and vision creates the future! intention of serving the country in mind, and keeping in mind The year 2018 marks the inauguration of the spirit of the 19th the mission of making armed forces powerful have been the National Congress of the CPC as well as the 40th anniversary political responsibilities that we have consistently upheld. We of “reform and opening up”. steadfastly safeguard the authority, and centralized, unified leadership of the Party Central Committee led by Xi Jinping to Keep ready, and forge ahead towards a new journey! Let’s enhance the Party’s leadership over this company. We further closely unite around the Party Central Committee led by Xi implement Xi Jinping’s idea of making armed forces powerful Jinping, comprehensively implement the spirit of the 19th in the new era, and vigorously intensifying the construction of National Congress of the CPC, stay true to the original aviation equipment. We have successfully completed each intention, keep the mission in mind, strive to build an air key model task throughout the year and guarantees for more power in the new era and weave the dreams of strong armed than 100 events including the parade celebrating the 90th forces and aviation to achieve the Chinese dream! anniversary of the founding of the People’s Liberation Army, and comprehensively practiced and brought into effect the military management mechanism of “overall management of the corporation, led by the host and system guarantee”.
2017 Social Responsibility Report 07
Promote Responsible Management
10 The Concept and Model of Responsibility 11 Corporate Governance Optimization 12 Communication Methods of Stakeholders 16 Practice of Responsible Management Promote Responsible Management
The Concept and Model of Responsibility - Responsibility Is Rooted in the Mission and Integrated into the Strategy
Aviation industry is a national strategic industry. The core of AVIC’s social responsibility begins with serving the country with aviation and a strong and equipped military is its fundamental responsibility, insisting on the whole undertaking of political, economic and social responsibilities and creating comprehensive value including economic, social and environmental value for stakeholders.
Persist in building Military-civilian strong armed integration forces and serving development the country
Set an example as an corporate Provide quality citizen products Dreams take flight with a heart for wings
Corporate Total risk governance management Participation Responsibility of the advances stakeholders management Responsibility culture
Build green Safeguard safety aviation production
Pay attention Driven by to rights and management and interests of innovation employees
The social responsibility model of Aviation Industry is designed in the itself to achieving one of the strategic targets of the Chinese dream, form of an aircraft, which represents the main industry of aviation the great rejuvenation of the Chinese nation. The five systems manufacturing and indicates that it's our primary responsibility to the supporting the performance of social responsibility center on this core country is building strong armed forces. idea, and include corporate governance, responsibility advancement management, total risk management, participation of stakeholders This model is composed of the Group Company social responsibility and responsibility culture. idea, five support systems and eight responsibilities. Wherein, responsibility as“Dreams take flight, with a heart for wings” is the Eight social responsibilities of the group fall within the outermost core. “Heart” refers to the initial intention, namely, the ideal pursuit of layer of the model, namely, persistence in building strong armed serving the country and strengthening armed forces and enriching forces and serving the country, military-civilian integration, providing the people with aviation since the establishment of Aviation Industry. quality products, safeguarding safety production, innovation-driven by “Dream” refers to the aviation dream and the Chinese dream, meaning management, paying attention to rights and interests of employees, that Aviation Industry hopes to create an air power through devoting building green aviation and exemplifying the corporate citizen.
10 Aviation Industry Corporation of China, Ltd. Corporate governance optimization
Enhance the root and the soul, and work hard in Party building
Aviation industry insists on writing the requirements for Party building Party Group of Aviation Industry (trial implementation). Issue the List of in the articles of association, and set up a chapter of “the leading Responsibilities for “Threefold Importance and One Greatness” of the Party group” specially. After the national meeting on building the role Leading Party Group in Aviation Industry, and make clear 92 “Threefold of the leading Party group within SOEs, add new content, such as Importance and One Greatness” matters at the level of Group mechanisms and relations for the leading Party group, the board of Company and principles, procedures, execution and supervision of directors and managers to make decisions on major issues, and make decision making, etc. clear Party organization, decision-making and other key requirements. Deploy and carry out the revision of the articles of association of Draw lessons from the thinking of aviation model engineering, and various units, and make clear the responsibility and authority, the construct the “1122” Party building system to ensure full coverage organizational structure, the operating mechanisms and basic of Party organization and work. Advance the exercising of full and guarantees of the leading Party group, so that Party organization is rigorous governance over the Party, persist in the political, ideological, able to play an organizational, institutional and specific role. organizational, work style and discipline construction of the Party integrated with institutional construction, and stimulate the vitality of Implement the fact that “the leading Party group discussion is the more than 5,500 foundational organs of the leading Party group and pre-set procedure for the board of directors and managers to make more than 160,000 Party members. decisions on major issues”, formulate and issue Rules on Leading the
Group completes corporate restructuring
Aviation Industry has been restructured from an enterprise owned by the whole people into a wholly state-owned company for which SASAC of the State Council performs the duties of a sponsor on behalf of the State Council, and the company name was changed to “Aviation Industry Corporation of China”.
Set up the office of the expatriate board of supervisors
The Group Company deepens reforms, integrates supervision, belong and the operation and management of people in charge adjusts the occupational organization of full-time directors and of the units and ensures the value of state-owned assets are supervisors sent by the company and sets up the office of maintained and increased. the expatriate board of supervisors of the Group Company to supervise major business activities of the units to which they
2017 Social Responsibility Report 11 Promote Responsible Management
Participation of the stakeholders
We adhere to the principles of integrity, interaction and equality, and establish and improve the mechanisms for stakeholders to communicate and participate. We collect, organize and analyze the expectations and demands of stakeholders in multiple ways, take measures to enhance communication and exchange with stakeholders, invite stakeholders to participate in decision-making and activities related to sustainable development of the company, draw lessons from advanced experience at home and abroad, and constantly improve the effects of participation of stakeholders.
Communication Methods of Stakeholders
Stakeholders Expectations for the corporation Communication and response
Enhance the leadership of the Party over enterprises; Strengthen Party building, persist in the original mission Implement the thought of Comrade Xi Jinping on building of building strong armed forces and serving the country, The Party Central strong armed forces in the new era, execute the strategy adhere to the development of military-civilian integration, Committee, of military-civilian integration, deepen reform of state- reduce body weight and keep healthy, deepen reforms, Central Military owned enterprises and the military industry, build strong innovate, surpass and strive to build an aviation power in Commission armed forces with advanced equipment and serve the the new era. country with aviation.
Implement national policies, laws and regulations, Implement laws, regulations and policies; guarantee focus on the development of the aviation equipment the primary responsibility of building strong armed State Council, manufacturing industry according to the requirements forces, and support economic development. Staff ministries and of the national “13th Five-Year Plan”, and promote the representatives attend the NPC and CPPCC, and commissions development of civil and general aviation; participate in participate in the formulation of the relevant laws, economic construction in a wide range of fields and serve regulations and policies. Offer advice and suggestions the national economy and the people’s livelihood for the healthy development of the industry. Submit statistical statement
Ensure the inflation-proofing and appreciation of the Focus on the main industry, and improve quality and SASAC of the state-owned assets Actively implement the strategies of efficiency; enhance the assessment of EVA; improve the State Council, the “Going-out” and “the Belt and Road Initiative”, integrate institutional system; accept survey and visits; cooperate relevant ministries into the world aviation industry chain, comprehensively with the audit supervision of all parties; work reports on and commissions carry out activities to improve management, and make special topic; system for reporting major matters; daily the main industry stronger and better statistics report
Follow securities laws and regulations, cooperate with the Cooperate with regulation; sign the strategic cooperation regulation on securities trading, and actively undertake agreement; carry out information disclosure in terms of CSRC, stock and perform responsibilities of the actual controller compliance; take active responsibility and maintain the exchanges and controlling shareholders; cooperate to maintain the stability of the stock market stability of the capital market
Participate in investment in the development of the Implement laws, regulations and policies; guarantee local economy, promote local employment, pay taxes in the primary responsibility of building strong armed Local accordance with law, operate according to law, alleviate forces, and support economic development. Staff governments poverty and support education and undertake the representatives attend the NPC and CPPCC, and community responsibility of large enterprises participate in the formulation of the relevant laws, regulations and policies. Offer advice and suggestions for the healthy development of the industry. Submit statistical statement 12 Aviation Industry Corporation of China, Ltd. Stakeholders Expectations for the corporation Communication and response
Provide quality and qualified product services; Disclosure of annual reports and temporary assume the responsibilities of the actual controller announcements in appropriate markets; disclose and controlling shareholders in the capital market to the social responsibility report; publicize information Society at Large ensure the compliance and efficient operation and through the official website of the company, CAN News development of the enterprise; information disclosure and other media and collect feedback; publish notices as for compliance; provide more jobs; bear social of recruitment; actively organize and participate in responsibility earthquake relief and other public welfare activities
Maintain the legitimate rights and interests of Hold a regular worker’s congress, build trade unions, employees, establish a reasonable salary incentive promote collective wage negotiation, set up a Staff mechanism, expand the career development channel platform for employee growth, provide a healthy and for employees, construct a healthy and safe working safe working environment, and actively implement environment and promote the local assimilation of localization policies for overseas employees overseas employees
Operate in good faith, provide quality products and Sign the strategic cooperation agreement; ensure Customers services, and set up a responsible brand image product quality, strictly follow contractual specifications, keep close communication with customers and do a good job in after-sales services of products
Strictly abide by laws and regulations, advocate Operate in good faith, strictly abide by the contract, Partnerships business ethics, maintain long-term cooperative regularly meet with top management, share technology relations, and achieve mutual benefit and win-win and management experience, cooperate in investment, business and meetings
Fair and transparent procurement, and stable Contract negotiation, regular visits, contractor billet Suppliers cooperative relations auctions, consultations
Create a good community living environment and Real-time communication with communities, carry Communities promote a prosperous community out community bonding activities and participate in community construction
Combine the production, academics, and research, Sign the strategic cooperation agreement with provide practical training conditions; provide good Greentown Release the campus recruitment plan in Educational jobs; guide vocational education and employment the official website, CAN News and related human institutions training; assist in aviation science education; aid resources agencies; organize training and lectures in poor students; subsidize education resources in poor relevant schools; regularly organize teacher allocation areas and alleviate poverty to support education
Support the development of social organizations, Take an active part in the activities of mass Non-governmental enhance information disclosure and participate in organizations, actively offer advice and suggestions, organizations public welfare undertakings enhance information disclosure and support public welfare undertakings
2017 Social Responsibility Report 13 Promote Responsible Management
Examples of major communication activities
4
The 19th National Congress of the CPC attended by representatives from Aviation Industry. Employees from headquarters and units watch the 19th National Congress of the CPC together.
Liu Yandong is visiting the AVIC Booth at the Innovation Achievement Africa mission to China are visiting Hongdu Base of AVIC. Exhibition of Central Enterprises.
14 Aviation Industry Corporation of China, Ltd. The whole series of helicopters in AVIC light up the China Helicopter Exposition.
All AVIC units actively carry out activities to popularize scientific The Group holds a school- enterprise communication symposium with knowledge of aviation. Jilin University.
Adhere to the tenet of Chinese-made helicopters taking off with “Aviclub - Night of Two Sessions” is held in Diaoyutai State dream and promote the idea of “Helicopters making Better Life”. AVIC Guesthouse, Beijing started the Miles Travelling of Helicopter (2) - Journey to “Central and West China”
2017 Social Responsibility Report 15 Promote Responsible Management
Responsible management practices
Optimize and adjust the model of the social responsibility concept
Under the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, according to the strategic development of the Group Company and in combination with the current reform and development in recent years, the model of the social responsibility of Aviation Industry has been re-optimized and re-designed.
Enhance the leadership of the Party over social responsibility
Deepen study of Xi Jinping’s Thought on Socialism with Chinese Characteristics for a New Era and the related theory of social responsibility, optimize and adjust the social responsibility management agency of the Group Company, and define social responsibility management organization and the duties of units at all levels.
Display the image of Aviation Industry through communication
In 2017, the Group Company organized and participated in international exhibitions, such as the Paris Air Show, Moscow Air Show, Dubai Air Show, France JEC Composite Material Exhibition, aircraft Interiors Expo Hamburg, “China Innovation” Berlin, and actively hosted or participated in the Central Enterprise Innovation Achievement Exhibition, China Helicopter Exposition, Military- Civilian Integration and High-Tech Equipment Development Achievements Exhibition, China International General Aviation Convention, “Creative • Innovative • Entrepreneurial” Cultural Festival for University Colleges and other exhibitions, and hosted and participated in AVIC flight assembly in many places.
16 Aviation Industry Corporation of China, Ltd. External report on the performance of responsibilities
The Group Company has formulated and published the a timely manner; frequently meets with and visits leaders and annual social responsibility report seven consecutive times, management personnel of government agencies and partners, engages in daily publicity and disclosure of major responsibility announces and communicates important responsibility matters; activities through the official website, CAN News, WeChat communicates important matters and activities with employees official account and other channels; reports the performance of at all levels through meetings at all levels and in multiple forms responsibilities of targeted poverty alleviation and other items and related documents. to SASAC of the State Council and the relevant departments in 2017 Social Responsibility Report 17 Promote Responsible Management
Key responsibility performance
1 Annual indicator Overfull assessment indicators of SASAC of the State Council with year-on-year growth of 8.7%
Revenue of year-on-year Profit of year-on-year
RMB404.8 billion 9.1% RMB16.55 billion 12.9% in 2017 in 2017
2 Model task
·The overall task completion is significantly better than that in previous years, and superior assessment makes great headway.
·Completed more than 100 task guarantee including the parade celebrating the 90th anniversary of the founding of the People's Liberation Army
·The completion rate of scientific research tasks and plans has been greatly increased
The management mechanism of “overall management of the ·Balance in production delivery has been improved significantly corporation, led by the host and system guarantee” has been ·Maintenance business is outperforming plans comprehensively implemented and become effective ·The efficiency of service guarantees has been improved in an all-round way
3 Military-civilian integration industry development
Set up the military-civilian integration leading group, formulate and issue Strategic cooperation with Sichuan Province, CRRC, etc. Decisions and Action Guide.
Issue the first batch of 17 project action Successfully host the first “Aviation plans in the strategy of Revitalizing Day” activities Northeast China
18 Aviation Industry Corporation of China, Ltd. Civil aircraft · First flight of AG600, the Party Central Committee and State Council send the scientific research message of congratulations
· “MA” 700 transferred to detailed design, “MA” 60 remote sensing aircraft obtained the domestic model certificate, “MA” 60 marine surveillance aircraft delivered to users
· Fully support the development of domestic large aircraft C919
Civil aircraft production
· Delivery of 419 aircraft completed and newly · Sub-contract delivery of USD1.76 billion. added order of 458 aircraft. · Started cabin business integration · More than 300 aircraft have been delivered for four consecutive years by Cirrus aircraft.
Industry Sort out the expansion Smart National The sixth derivative Manufacturing demonstration generation spectrum of Equipment base of liquid crystal military aviation Center, Industry “Innovative and production line technology of Virtual Reality Entrepreneurial” of Tianma and screen key Alliance industries
Smart Devices X series Innovative and Item Entrepreneurial
International Planning scheme of “Air Silk Road” obtained the affirmation of superior departments. development Strengthen the management over foreign organizations and formulate Post Evaluation and Management Method for Overseas Project Implement “China-Africa Regional Aviation Cooperation Plan” and perfect overseas customer service system of Chinese-made civil plane.
Boasting perfect risk control on overseas enterprises and constant promotion of operating benefit, Cirrus Design Corporation delivered over 300 airplanes for four consecutive years.
2017 Social Responsibility Report 19 Serve the Country • Aviation
22 Focus on the main industry, and serve the country 01 with aviation 26 M ilitary-civilian integration, and serve the country by developing industries
Continue to carry forward the spirit of serving the country with aviation, persist in making safety and quality a top priority, be down-to-earth, constantly strive for perfection and make new contributions to further improving the equipment manufacturing capacity of our country.
Keep missions and duties firmly in mind, adhere to making the national interests a top priority, persist in the implementation of innovation-driven strategies, be bold with innovation, reform with keen determination, be down-to-earth, scale new heights and make unremitting efforts in building China into an aviation power.
—— Quotations from President Xi
Serve the country • Aviation
Focus on the main industry, and serve the country with aviation
Aviation Industry is the central enterprise of the military industry, and it’s our duty to serve the country by developing aviation, which is likewise an important way to carry out military- civilian integration, and serve the country by developing industries in order to serve the country by building strong armed forces.
“The world is not all at peace, and peace must be safeguarded.” To realize the Chinese dream of the great rejuvenation of the Chinese nation, we need to build a strong people’s military and need the support from advanced weapons and equipment. As the main contractor of aviation weapon equipment in our country, it is the primary political task of Aviation Industry to build and maintain strong armed forces. In the past five years, Aviation Industry has kept in mind the important instructions of “faced with new changes in the demands for national security, we shall not only dare to brandish the sword, but also attach importance to forging swords”, “to design the equipment is to design a future warfare” and construction of weapons and equipment, has always made the construction of the system of aviation weapons equipment a strategic priority, kept up with the demands for strategic transformation of our military, enhanced technological breakthroughs, strengthened organizational leadership, make innovations in management and realized the major historical leap from three generations to four generations, from mechanization to information technology, from land-based to sea-based, from manned to unmanned, from small and medium-sized to large-sized, from tracking development to independent R & D and from single breakthrough to systematic development. As Chengdu J-20 and Xian Y-20 are delivered to the army and J-15 is perfectly on board, large numbers of major equipment at globally advanced levels has emerged, which has amazed the world and inspired people.
In 2017, Aviation Industry further integrated ideas and actions into deployment on national defense and armed forces of General Secretary Xi Jinping and the Party Central Committee, firmly established the strategic concept of “persisting in the commanding stature of Aviation Industry and supporting the strategy of building strong armed forces as a great power”, the performance concept of “if the main industry is strong, aviation is strong and the industry will prosper”, the customer concept of “what the military thinks is what we do” and the quality concept of “for ourselves and long-term interests”, provided new inexhaustible drivers for the construction of aviation equipment and achieved a series of excellent results.
WZ-10 and WZ-19 form “90” and fly over the reviewing stand
22 Aviation Industry Corporation of China, Ltd. 2017 Social Responsibility Report 23 Serve the country • Aviation
Highlights Show the heaven sword, and autumn maneuvers in the field
On July 30, 2017, the military parade marking the 90th were independently developed and manufactured by Aviation anniversary of the founding of the army was held at Zhurihe Industry. It was the first time that major equipment, such as Training Base, and General Secretary Xi Jinping inspected Chengdu J-20, Y-20, J-10B and Y-9, took part in the parade, troops, which demonstrated China’s strength and resolute which inspired people, shock the surrounding areas, amazed determination to safeguard national sovereignty, security and the entire country, and made a show of the country and its development interests as well as the formidable deterrent military. Aviation Industry has once again become the focus force of China’s military and equipment. All of the nine of the world’s attention. echelon formations and 18 models and 129 aircraft in the air
129 fighter jets strike the sky
AWACS Formation accept the inspection A tanker XAC HU-6/H-6DU and two J-10B Fighter Jets take the initial air refueling in formation.
24 Aviation Industry Corporation of China, Ltd. Highlights The God of War has made outstanding meritorious services and delightedly joined the army
H-6K dropping a bomb
On August 9, 2017, the Air Force of China’s H-6K aircrew known as the “God of War”. On March 30, 2015, H-6K won the title of “Aviation Dart 2017” as the bomber aircrew in initially left the first island chain and flew over the Western one fell swoop attracted the attention from the international Pacific Ocean across the Bashi Channel, declaring the community. H-6K is a new type of medium and long-range existence of the Air Force of China in the Western Pacific strategic bomber independently developed by Aviation Ocean. Since then, H-6K has conducted regular ocean Industry, which enables the Air Force of China to be initially training in the Western Pacific Ocean, regular police patrol in equipped with the capacity of long-range strike and all- the East China Sea Air Defense Identification Zone, regular territory coverage and has provided a reliable and available cruising around the island and regular war tours in the weapon for the Air Force to realize the strategic requirement South China Sea. H-6K has shown its powerful sword and for “integrated air and space, striking and defending”. It’s demonstrated the strength of a major power.
On September 28, 2017, the spokesman for the Ministry of National Defense announced that the Chengdu J-20 had been delivered to the army and the test flight was advancing smoothly as planned. The delivery of Chengdu J-20 to the army has further improved the comprehensive combat ability of the Air Force of China and marks a new step forward towards the goal of integrating air and space with both attack and defense. Chengdu J-20, which is a weapon highlighting military science and technology development in 2017, topped the list of “2017’s Top Ten Star Weapons in China” jointly Chengdu J-20 tops the list of Top Ten Star Weapons of the Year selected by media from the military industries in China. in China
2017 Social Responsibility Report 25 Serve the country • Aviation
Military-civilian integration, and serving the country by developing industries Since the 18th National Congress of the CPC, the Party Central Committee has regarded military-civilian integration as a national strategy. In 2016, the Party Central Committee, State Council and Central Military Commission jointly issued the Opinions on the Integrated Development of Economic and National Defense Construction, and military-civilian integration development scaled a new height.
In the past five years, Aviation Industry has earnestly implemented the deployment of the Party Central Committee, brought into play the advantages of high-tech industries in the aviation military industry and driven the development of the industry of civilian products. This has created a good situation of coordinated development, good interaction, mutual support and complementing of military and civil industries and better served the modernization of national defense and development of the national economy. In 2017, Aviation Industry issued Decisions on the In-depth Implementation of the National Strategy of Civil-Military Integrated Development, making a detailed plan for the civil-military integration of Aviation Industry and accelerating the progress of military- civilian integration and open development. Aviation Industry has transferred the technological At the same time, Aviation Industry has extended the advantages of military aviation to civil areas, promoted aviation industry chain by means of aviation technology the R & D and manufacturing of civil aircraft and transfer, capitalized operation, domestic and foreign innovative development of related industries and mergers and acquisitions, etc. and made new has established a basic civil aviation product system breakthroughs in developing smart manufacture, virtual composed of medium-sized transport aircraft, reality, modern service industries and other strategic turboprop regional aircraft, general aircraft, helicopters, emerging industries. engines, and airborne equipment and systems.
More than 1000 enterprises participated The number of civil enterprises reached 600 in research on the Dayun Project Including more than 400 private enterprises
98% of structures and system components are provided by domestic suppliers 20 provinces and municipalities, more than 150 enterprises and public institutions and more than 10 colleges and universities across the country Tens of thousands of scientific research personnel participated in project research and development
26 Aviation Industry Corporation of China, Ltd. AG600
“AG600” made its maiden flight successfully
Highlights AG spread its wrings, MA transported ten million passengers
In terms of turbo-prop plane, Aviation Industry has boosted successfully. This aircraft will strongly promote the capacity and quality improvement and remodeling as well as the serialization of MA aircraft of supply of domestic civil aircraft products, effectively facilitating while at the same time continuing to innovate and boost new types development of the emergency rescue aviation equipment system in such as Lingshi AG300 and AG600. China and assisting in the Belt and Road initiative and the construction of maritime power. In December 2017, the first large-scale amphibious aircraft – AG600 researched and developed by Aviation Industry made its maiden flight
2017 Social Responsibility Report 27 Serve the country • Aviation
On September 26, an event was held in Beijing to celebrate the reaching powerful evidence for large-scale operation of domestic regional aircraft. of the ten million passenger mark by China’s new MA aircraft, its largest capacity, and first domestically produced aircraft to realize large-scale MA series aircraft pushed forward in simultaneous development operation. More than 200 MA aircraft were ordered in total, and over of multiple models such as the passenger transport type, freight 100 were delivered to customers including 57 delivered for export, and transport type, official business type, maritime monitoring aircraft and they operated in nearly 300 air lines by 33 operators in 18 countries rain enhancement aircraft to meet the requirements for the national nationwide for more than 12 years. As of August 2017, it transported defense equipment construction on one hand and also expand the more than 10,000,000 total person, logged 420,000 hours in flight and civilian aircraft market and bring new momentum to the development took off and landed 390,000 times. The series of achievements made by of regional aviation and regional economic development in the operation MA aircraft during the 12 years from when it entered the market became area on the other hand.
“Modern Ark” 60, the Air Express of rainforest countries “Modern Ark” 60 is delivered, the “first” air plane of Air Burundi
28 Aviation Industry Corporation of China, Ltd. The accumulated order of “Modern Ark” plane up to more than 200 More than 100 planes were paid by customer In which, 57 were exported.
MA aircraft transported more than ten million passengers
It has been operating for more than 12 years in 18 countries for 33 users the worldwide with about 300 air lines.
Until August 2017, served travelers beyond ten million, accumulative flight hours are0.42 million, 0.39 million taking off and landing.
2017 Social Responsibility Report 29 Serve the country • Aviation
Accumulative delivered amount in batch for export are 99. Customers covered 33 countries.
Lowres
Highlights Eye-catching Y-12, prosperous global link
The Y-12 series aircraft independently developed by Aviation Industry was the first domestic civilian aircraft to obtained model certificates from the developed countries, including the US, the UK, France and Australia, with 99 total aircraft delivered for export in batches. Its customers spread over 33 countries and it was widely used in multiple fields worldwide, and was full of vitality. In 2017, Y-12 made an earth-circling flight; Y-12E participated in the rescue and relief work in Costa Rica; Y-12F completed the Natural Freezing Airworthiness Verification and conducted the successful road show in the US; The rhythm of 2017 belonged to the proud Y-12 family!
From January 29 to June 24 2017, husband and wife, Zhang Xinyu and Liang Hong piloted Y-12 aircraft developed and produced by Aviation Industry across five continents, three oceans and 23 countries and complete the first earth- Meritorious Y-12 returned after travelling around the world circling flight by a domestic aircraft in four months, on a voyage of over 60,000 kilometers. Aviation Industry provided the 24-hour stand-by technical support for the entire circumnavigation to guarantee its flight technology safety.
A 33-year-old Y-12II type aircraft performed the earth-circling flight; China Flying Dragon subordinate Aviation Industry perform its flight to complete the “This aircraft was our best partner all the way. This magnificent feats in scientific investigations such as being the domestic first to cross “sea of death” Lop Nor and crossing Taklimakan Desert and participated in Y-12 became the only aircraft successfully landing the tasks such as marine law enforcement in the South China Sea and the artificial when the lightning flashed and thunder rumbled in precipitation in multiple area for many times. It has been the genuine “meritorious the sky over Manta Airport. Chinese manufacturing aircraft”. Whether experience the low temperature of minus 30 degree centigrade in Russia or encountering the strong dust storm in Africa, this aircraft could is awesome! guarantee them to reach the destination safely with its strong performance. —— Zhang Xinyu From March 21 to March 22, the new generation turboprop general regional aircraft Y-12F independently developed by Aviation Industry arrived in Fort Lauderdale, Florida, the US and successfully completed the road show lasting for 2 days.
30 Aviation Industry Corporation of China, Ltd. Y-12E participated in rescue in Costa Rica
On April 12, Boas Volcano in Costa Rica erupted, and the local region and 7 minutes, completing the tasks including rescue, observation and entered a state of emergency. Two Y-12E aircraft produced by Aviation patrol excellently. Previously, in November 2016, Costa Rica experienced Industry were immediately devoted to the rescue work with the a disastrous hurricane, and two Y-12 aircraft and the on-site after-sales cooperation of the after-sales service group and were busy day and service group participated in urgent rescue and smoothly completed the night to safeguard the lives, property and safety of the local people. Two tasks with 100% of the attendance rate and performed a real version of Y-12E aircraft took off and landed 26 times in total and flied for 16 hours “hurricane rescue”
On March 21 to 22, Y12F plane arrived at Florida of USA and successfully finished the two days roadshow.
2017 Social Responsibility Report 31 Serve the country • Aviation
Highlights Awe-inspiring Wing Loong II, abundant helicopter family
On February 27, the new generation of high-end investigation-fighting- realized the rapid delivery of high quality according to the requirements integrated UAV – Wing Loong – independently developed by Aviation in the contracts with the foreign users. Industry made its maiden flight successfully. Just 10 months after that, Wing Loong II carried out a series of test flight tasks and had complete use capacity. It used tens of guided missiles and bombs of eight types in total in the flight test and completed the verification of multiple flight-test scenes, with the hit rate of 100%. Remote task handover and execution were completed and witnessed by the users; “One station control of two aircraft” proceeded successfully; For the fixed and mobile target, one aircraft successively launched five different types of guided missiles with “100% hit rate for five launches” and created the new flight-test of the domestic UAV. It was a sign that China had entered the countries having the global first-class level of large-scale investigation-fighting-integrated UAV, had the capacity to deliver the new generation of investigation-fighting-integrated UAV aviation foreign trade products to the overseas market and upgraded its competitiveness in the foreign trade of aviation equipment in the world. In 2017, both Wing Loong I and Wing Loong II UAV systems Wing Loong II created the new UAV fight-test record of “100% hit rate of five launches”
AC311 Helicopter
Based on independent domestic security, Aviation Industry vigorously met the demands of the military and civil operators comprehensively promoted the technology innovation and formed the “army-civilian with its series of helicopter products from 1 to 13 tons. Additionally, it combination, one aircraft with multiple types, series of development” independently developed the Y-12 series of light multi-purpose fixed- helicopter development pattern. The main products included wing aircraft, produced the helicopters including EC120, EC175 and helicopters such as WZ-8 series, WZ-9 series, WZ-11 series, WZ-10 CA109 types by international cooperation as well as provided the and WZ-19, the new generation of civil helicopters such as AC310, subcontracting production services. The flight scope of domestic AC301, AC311, AC312, AC352 and AC313 and UAVs such as AV500 helicopters could cover all the territories of land and ocean in China and AV200 as well as the 3-ton-level civil helicopters and heavy so as to provide the advanced equipment for the modernization helicopters under research, and it realized the cross-generation leap construction and fighting capacity promotion of our army and make of technology and products, formed a whole-family development and important contributions to the economic and social development.
32 Aviation Industry Corporation of China, Ltd. Highlights Similar and high in three aspects, non-aviation showed intelligence
Aviation Industry thoroughly implemented the military-civilian In 2017, Aviation Industry founded Intelligent Manufacturing integration strategy, followed the principles of “uniform in technical Equipment Center by coordinating manufacture of internal high-end expertise, centralized in industrial organization and synchronized in equipment, R & D and manufacturing power; Founded VR Industry values” and took “large-scale high-end equipment projects, industrial Alliance. The 6th generation of LTPSAMOLED production line in high technology projects, and service-oriented high value-added Tianma, Wuhan was brought online and refreshed the industrial projects” as the specific expansion direction for developing the non- record; SCC Nantong Plant Project and Lithium-iron Power Battery aviation industry and for forming the pillar industries such as new Project construction was promoted steadily; Tianmai Operation materials, new energy sources, electronic information and equipment achieved sustainable progress in fields such as high-speed trains, manufacturing, and achieved new breakthroughs in the strategic and the exoskeleton of smart robots achieved sustainable progress in emerging industries such as industrial robots, high-end smart fields such as medical treatment. manufacturing, industrial-level UAV and VR while focusing on the major work of aviation.
It successfully lit the 6th generation of AMOLED production line which was the global first to light the rigid and soft display screen simultaneously in Tianma, Wuhan and set a record for the highest lighting speed of the production lines in the same scale in the world
Tianmai Operation System independently researched and developed by Aviation Industry won the gold award at the 19th China International Industry Fair.
Virtual test scene for static strength of aircraft of Strength Bureau, Aviation Industry
2017 Social Responsibility Report 33 Serve the country • Aviation
Highlights Development and operation of Layout of General Aviation aircraft general aviation flied wing to Manufacturing Bases of Aviation Industry wing Central China Special aircraft, light sport aircraft The general aviation industry is a national strategic emerging industry and is one of the major businesses of Aviation Industry as well. In 2017, Aviation Industry promoted the development and operation of general aviation to fly wing to wing and achieved remarkable results. In the manufacturing field, the independently developed AG600 made its maiden flight; the independently developed Puffin AV500 unmanned helicopter completed its first commercial flight; its subordinate General aircraft Cirrus aircraft delivered more than 300 aircraft for 3 consecutive years and maintained stable growth of nearly 20% for 8 consecutive years since 2009; the joint-stock domestic Cessna 208EX aircraft was sold to the international market for the first time.
In the field of general aviation operation, Aviation Industry has 20 subordinate general aviation enterprises, with total assets of RMB 3,100,000,000, nearly 2,000 employees and over 280 operational aircraft, including 46% of aircraft made in China. Its main operation bases are distributed in 13 provinces and directly-controlled municipalities nationwide and carry out the business covering the whole county (except Taiwan Province). In 2017, Aviation Industry actively explored “general aviation +” business mode based on providing the traditional operation service. Aviclub brand founded by Aviation Industry has become a well-known brand in the field of general aviation.
Southern China High-speed corporate aircraft, large-scale amphibious aircraft
“Walking in the Cloud” air bicycle designed and manufactured by Aviation Industry formally appeared. It is a low-altitude Puffin AV500 unmanned helicopter completed its first cycling balloon aimed at popular entertainment, and the users commercial flight in Dalian can experience cycling in the air independently within 50m of lift-off height.
34 Aviation Industry Corporation of China, Ltd. Northern China Multipurpose aircraft Cirrus in the US Private aircraft
8 research member units Spread in 5 provinces Northeast China Multipurpose aircraft 23 general aviation enterprises hold the operation qualification at Chinese and abroad Total assets RMB3.4 billion Yuan About 2,000 employees High-speed corporate aircraft, large-scale amphibious aircraft 15 provinces are covered by Chinese main operating base
China Flying Dragon operated and flied for over 5,000 hours in Currently, Aviclub Holdings operates 112 general aircraft of 2017, and its aviation craft use rate reached over 94% types and has 173 aviators; its industry covers more than 10 provinces and cities nationwide; the low-altitude airspace served by it accounts for more than 30% nationwide, and the population covered by its service accounts for more than 20% nationwide.
2017 Social Responsibility Report 35 Responsibility • Aviation
38 Managing Enterprises According 02 to the Law, Legislating Responsibility 40 Health Quality, Safety Responsibility 42 Reliable Product, Quality Responsibility 43 Green Aviation, Environmental Responsibility
All kinds of enterprises shall take law abiding and integrity as the foundation of settling down and getting on with their pursuit to operate according to the law, govern the enterprise according to the law and safeguard legal rights according to the law.
All enterprises must carefully carry out their overall responsibility of safe production and live up to standards in safety investment, safety training, basic management and emergency rescue to ensure safety production. The central enterprises shall lead by good example.
They shall insist on quality first, understand the quality problem by placing it at the height of relating to the officers’ and soldiers’ life and relating to the outcome of war, carry out the idea that quality is life and quality is probability of victory and establish the quality responsibility lifelong investigation system.
We long for clear waters and green hills as well as golden and silver hills. We long for rather clear waters and green hills than golden and silver hills, and clear waters and green hills are golden and silver hills.
—— Quotations from President Xi
Responsibility • Aviation
Managing Enterprises According to the Law, Legislating Responsibility
It’s the basic responsibility of Aviation Industry to manage enterprises according to the law, apply safety production and provide quality and safe products for military users and civilians while protecting the environment and realizing green development during production and operation.
The Fourth Plenary Session of the 18th Central Committee made governance of central enterprises by SASAC of the State Council rose to 9 the strategic deployment of comprehensively establishing socialist rule of (Level A) in 2015 from 47 in the year of 2010. The corporation ranked first in law in China. In 2015, Aviation Industry took active actions and quickly military industry enterprises, becoming the vanguard in terms of law based responded, taking the lead in putting forward the construction of “law-based governance of enterprises. In 2017, Aviation Industry earnestly studied and governance of Aviation Industry” and comprehensively advancing the work implemented the spirit of the 19th National Congress of the CPC, constantly of “law based governance of enterprises”. In the past five years, under the improving the law system, and promoted the effective integration of legal guidance of “law-based governance of Aviation Industry”, Aviation Industry work into all levels and links of production, operation and management to has made considerable progress in the work of “law based governance of safeguard the aviation dream. enterprises”. The ranking of the Group Company in contribution to law based
Highlights Comprehensive anti-corruption mechanism and strong disciplinary inspection and supervision
Through the construction of the mechanism of “dare not, cannot and do not want implementation mechanism with a distinct subject, clear responsibility, organic to be corrupt”, Aviation Industry has made efforts in promoting the exercising coordination and orderly operation. In 2017, units signed 7,341 agreements of full and rigorous governance over the Party to develop in depth and breadth of responsibility for the construction of the work style of the Party and a clean and extend to grassroots. First of all, enhance political study, earnestly study and government step by step, and talked with 8,249 people; Leaders at all levels implement Xi Jinping Thought on Socialism with Chinese Characteristics for a signed 8,239 agreements of responsibility for the construction of the work style New Era and the spirit of the 19th National Congress of the CPC, make efforts in of the Party and a clean government during the term of office, and talked with “learning to understand”, “trying to comprehend” and “being practical” and work 7,920 people. 99 items of decision making post-assessment for major issues were hard at being effective. Second, enhance the political responsibility of management carried out. Third, starting from punishment of corruption , prevention and control, and governance of the Party, build the “1122” Party building work system, and set study and education, build and improve the anti-corruption mechanism of “dare up the construction of the work style of the Party, a clean government and the anti- not, cannot and do not want to be corrupt”. Fourth, deepen “Three Transfers” and corruption leading group. The main leadership of the Group Company gives full create a loyal, clean and responsible team of disciplinary inspection, supervision play to the duty of “the first responsible person” and members of the leading group and auditing. conscientiously perform “one post and dual duties”, thus forming a responsibility
Indicator 2017
Number of letters, calls and tip-offs handled 372
Processing rate of problems and leads 100%
Number of completed audit projects 3,479
The amount of increased income and reduced expenditure RMB512 milliom
The amount rectified and corrected by audit RMB6,953 billion
Proportion of general counsel equipped 95%
38 Aviation Industry Corporation of China, Ltd. Highlights Maintain normal law popularization for law-based governance of aviation
AVIC The First Aircraft Institute innovation and law popularization practice, held jointly with local court the activity of “Company with law·Moot court”.
Legal popularization is not only the basis of promoting the law-based websites organized by the National Legal Popularization Office, organized governance of enterprises but also the important social responsibility enterprises and public institutions to carry out “12.4” national legal-awareness that shall be assumed by all enterprises. Aviation Industry regards legal day activities, vigorously studied and publicized the Constitution, made solid popularization as the basis for building the law-based governance of Aviation efforts in implementation of the legal popularization responsibility system, Industry and makes unremitting and long-term efforts in it. In 2017, combined made innovations in the work of legal popularization and promoted the in- with the study and popularization of the spirit of the 19th National Congress depth development of the “7th Five-Year Plan” on legal popularization and of the CPC, the Group Company organized units directly under it and law-based governance. member units to take part in activities, such as answering questions on 100
Highlights The rate of supervising and handling Supervise case execution major legal disputes on site or in a and safeguard legal rights centralized way is according to law % From March to May in 2017, Aviation Industry was focused on carried 100 out a round of work on the handling and supervision of cases. Of 41 major legal dispute cases at the Group Company worth a total of about RMB 10 billion, basically 100% were settled on site or by centralized supervision , and the corporation carried out specific Total losses of about case guidance and supervision on the handling of cases of 21 units million involved. All units of the Group Company avoided or recovered losses totalling about RMB780 million through the safeguarding of legal rights according to law throughout the year, which has effectively maintained the legal rights and interests of the state and enterprises. RMB780 have been avoided and recovered through the safeguarding of legal rights according to laws
2017 Social Responsibility Report 39 Responsibility • Aviation
Health Quality, Safety Responsibility
Safety production and product quality are the social responsibilities that enterprises must bear. The production process and product quality of Aviation Industry is directly related to the safety of national defense and military and civilians, which is the basic responsibility that Aviation Industry must adhere to in order to build strong armed forces and serve the country.
Highlights Everyone keep health, completed protection system
In 2017, in aviation industry, we continue to promote the Occupational-Disease-Prevention Products, Non-Toxic Substitute construction of occupational health system. In order to set up Toxic, Low-Toxic Substitute Highly Toxic Cases in Aviation Industry, new model of occupational health management and promote and Practical Information Card for Occupational Health Protection, the application of new technology in occupational health, the regulated the usage and management of occupational-disease- group company organized the compiling work of “Non-toxic prevention products in the group company, provided cases and substitute toxic, low-toxic substitute highly toxic” cases and technologies that widely applicable and suitable for promotion practical information card for occupational health protection. for various units, and improved defending effect of occupational After one year, we issued Measures for the Management of disease.
Cases of Aviation Industry of Non-toxicity Replacing Toxicity and Low Toxicity Replacing High Toxicity and Occupational Health Protec- tion Practical Technology Information Card were issued in 2017
40 Aviation Industry Corporation of China, Ltd. Highlights Pay attention to safety inspection every year, and sound the alarm at any time
Aviation Industry resolutely implements the requirements of putting and State Administration of Science, Technology and Industry for life on top priority and safety first, makes unremitting efforts in the National Defense in previous years, it urges and guides units to carry management of safety production, combs out hidden safety dangers out the corresponding safety production inspections and publicity, combined with the safety situation every year and oversees targeted which has put in place a long-term mechanism of safety management investigations. Combined with “safety production Month” activities and created a stable safe inspection environment. organized by the Safety Production Committee of the State Council
Safety Production Committee of Aviation Industry Safety production management Corporation of China, Ltd system of Aviation Industry
Safety Production Office of Aviation Industry Corporation of China, Ltd
AVIC Regional Safety production AVIC Technical AVIC Safety Production Safety Production management organizations Support Organization Expert Team Coordination Team of units directly under AVIC
Safety production management organizations of member units under AVIC
In 2017, the Group Company comprehensively advanced the re- production on 81 units, investigated and managed more than evaluation of safety production standardization, organized 52 units 10,000 hidden safety dangers and thoroughly eliminated dangerous to carry out the re-evaluation of safety production standardization workplaces with more than 10 people. throughout the year, carried out special supervision of safety
Amount of safety production investment RMB531 million Rectification rate of major accidents and hidden dangers 100% Formulate the overall contingency plan 237 Formulate the item contingency plan 994 Occupational safety protection investment RMB120 million Implement energy conservation and emission reduction technical 51 renovation projects
In June 2017, the Group Company fully launched the “Safety development of each task. Among them, AVIC Shaanxi Aircraft Production Month” activities. All the units of Aviation Industry Industry (Group) Corporation Ltd. was awarded the honor of advanced responded actively and set up organizations, formulated the scheme unit at national “Safety Production Month” and “Long March to Safety of activities, extensively carried out publicity and education activities, Production” events in 2017. AVIC Changhe Aircraft Industry (Group) comprehensively carried out troubleshooting of hidden dangers to Corporation Ltd. was awarded the honorary title of National Safety the masses, and organized safety production overhaul and targeted Culture Construction Demonstration Enterprise by China Association administrative measures and emergency drills, which created a good of Safety Production. atmosphere of “Safety Production Month” and promoted the orderly
2017 Social Responsibility Report 41 Responsibility • Aviation
Reliable Product, Quality Responsibility
Production process and quality of AVIC directly relate to the national engineering technicque, tackling of quality technology, establishment of defence safety and the life safety of soldiers and civilians . It the basic quality data resource, improvement of personnel quality and establishment upholding responsibility of AVIC to achieve the target of serving the country of quality culture. Every unit on the basis of implementating the general with powerful army. In 2017, AVIC actually promoted quality improvement planning of quality improvement, combines their own characteristics and project and, based on all those systematic promotion, implemented 7 difficulties to actually solve the outstanding development and production special works including the establishment of quality standard system, boost problems and improve the quality management of aeronautic equipment at of reliable system engineering, promotion and application of mature quality a steady pace.
Highlights Quality management in each unit and efficacy relies on assessment
It’s one of the important measures for the Group Company to advance correction and improved the enterprise quality management level and AVIC-QMS evaluation in terms of the demand for building of R & quality assurance abilities. A total of 10,473 people in 98 units from D capacity for a new generation of weapons and equipment and the whole group participated in the GJB9001C Standard Training with system construction, which won the second prize of national quality the training rate of “the first in command” as 100% and of the “deputy and technology by China Association for Quality. Since evaluation post” as 94.2%. In 2017, the overall quality management system was carried out in 2010, 80 units of the entire corporation have evaluation score of all group units was 83.13 with an increase of 8.6 passed the evaluation meeting standards at a rate of 87.02% and percentage points over the previous year, and the effectiveness of the a pass rate of 88.95%. In 2017, taking the upgrading of the version system is steadily increasing. of GJB9001C as an opportunity, the Group Company revised the Management Measures of Quality Management Evaluation of The two projects, “Aviation Equipment R&D Process Modeling Aviation Industry Corporation of China, Ltd and issued the Measures and Organizational Innovation Based on High Performance” and on the Management of Quality Management System Evaluation of “Refined Process Design and Application for the R&D of High-speed Aviation Industry Corporation of China, which further improved and Transmission Device” of Aviation Industry Nanjing Electromechanics implemented the quantitative evaluation of the quality management won the second prize “2017 China Quality Technical Award” awarded system, effectively promoted units to establish the relatively perfect by the China Association for Quality. continuous improvement mechanism of self-improvement and self-
2015 2016 2017 AVIC-QMS evaluation score trend chart
64 67 78 Quality management evaluation score of the general process 79 73 84 Quality management evaluation score of the software product development process 68 68 82 Quality management evaluation score of the supplier and procurement processes 71 80 86 Quality management evaluation score of the test process 76 78 79 Quality management evaluation score of the product development process 67 78 86 Quality management evaluation score of the production and service processes
96 91 93 Quality management evaluation score of the laboratory
42 Aviation Industry Corporation of China, Ltd. Green Aviation, Environmental Responsibility
The Aviation Industry, the main force of advanced manufacturing, pollution control as well as ecology protection. The group company attaches great importance to building an ecological civilization. During integrates environmental requirements and standards into product R&D, many years of exploration and practice, upholding the concept of manufacturing, services and other processes, actively develops high- “green development and harmonious development”, it accelerates the efficiency and environmentally friendly engines, turboprop regional elimination of backward production capacity, promotes the optimization aircraft and advanced civilian aircraft, and strives to build a green of industrial structure, accelerates the construction of resource- aviation industry chain. conservation and environmentally friendly industrial systems, and effectively fulfills the social responsibilities of emission reduction and
Highlights Reduce emissions with indicators, save energy and reduce consumption
In 2017, the Aviation Industry set up a Group Energy-Efficiency reduction technical renovation projects and dedicated RMB223.3 R&D Center, improved the three major green aviation systems for million to renovation of energy conservation and emission reduction supervision, statistics and assessment, created four platforms for technologies. In line with their own status, various subordinated units training, promotion, inspection, and R&D, and outperformed the have constantly innovated and practiced to obtain new results in the indicators of energy conservation and emission reduction. The Group energy-saving and cost-reducing field. Company has implemented 1,123 energy conservation and emission
Energy-saving and Environment-Friendly Leading Group of the Aviation Industry Corporation of China, Ltd
Energy-Efficiency and Environment-Friendly Office of the Aviation Industry Corporation of China, Ltd
Energy-Efficiency and Environment-Friendly Management Organization of the Subordinate Units
Energy-Efficiency Environment Protection Energy-Efficiency and and Cost-Reduction Cooperative Group of Environment-Friendly Cooperative Group of the AVIC Expert Group of the AVIC the AVIC
Energy-Efficiency and Environment-Friendly Management Organization of the Member Units
Energy-Efficiency and Environment-Friendly Management System of the Aviation Industry
2017 Social Responsibility Report 43 Responsibility • Aviation
Implemented 1,123 Items Dedicated RMB223.3 RMB10,000 Added for Energy Conservation Million to Energy Value Integrated Energy and Emission Reduction Conservation and Consumption Declined Technical Renovation Emission Reduction for 5.93% Compared Projects Technical Renovation with the Previous Year 1,123 223.3 5.93%
COD Discharge Amount SO2 Discharge Declined for 6.45% Amount Declined for Compared with the 6.75% Compared with Previous Year the Previous Year 6.45% 6.75%
The Aviation Industry Hangte Company has developed a preparation strengthens the monitoring of key energy equipment operation method for the low-temperature synthetic smart catalyst, perovskite, indicators and continues to maintain the efficient operation of gas- LaFePd,, which can achieve atomic-level dispersion of precious metals fired boilers, coordinates and studies the energy-saving renovation while avoiding the aging and performance degradation of conventional plan of central air-conditioning, implements LED lighting energy- supported catalysts arising from the precipitation, solid solution, saving renovation, and actively conducts energy-saving publicity and and sintering during continuous use, for the purpose of meeting the education and takes comprehensive measures to save energy and durability requirements with a lower precious metal amount through reduce consumption. The RMB10,000 added value integrated energy the almost “intelligent” regeneration mode. consumption of 2017 is 0.0930 tons of standard coal, a decrease of 15.8% over the year of 2015, which outperformed the target of 3.2% AVIC Chengdu Aircraft Industrial (Group) Co., Ltd. actively participates set by executive management. The Energy Management Department in power-saving activities such as the transactions of direct-purchasing of the company won the honorary title of “Pioneer Worker” awarded by electricity and the consumption and absorption of extra electricity, the all China Federation of Trade Unions.
Added Value Energy Consumption
2017 0.093 2016 0.0995 2015 0.1148 2014 0.2339
Energy-Saving results of Chengdu Aircraft Industrial (Group) Co., Ltd.
44 Aviation Industry Corporation of China, Ltd. Highlights Promote Clean Production, Create Green Aviation
Aviation Industry adheres to the sustainable development concept of Relying on aviation measurement and control and telemetry “innovative, coordinated, green, open and sharing”, and carries out technology, the AVIC CAMA Electronics Company designed and the sustainable development concept of green and environmental developed a clean, low-carbon, energy-saving DC charger product protection starting in the design stage. The Group Company issued from the perspective of environmental protection. Compared with the the Green Aviation Industry Evaluation Criteria and assessment rules, traditional way of fuel supply, this product can save 8.1 million liters of focusing on the creation of green factories for Category I enterprises, diesel per month and reduce carbon emissions by 1,500 tons. CAMA which has completed the establishment under standards for 11 units. Electronics is identified as the first supplier of electric bus charging The China Aviation Research Institute organizes the 2017 China- equipment by Yutong Company. The overseas version of the DC Europe Green Aviation Science and Technology Exchange Conference charger developed by the company has passed the test and entered to conduct academic discussions and technical exchanges centering the European market, becoming the first domestic charger to obtain on the common vision of green aviation, safe aviation and smart the TUV Rheinland CE certificate. aviation.
MA700, the new turboprop regional aircraft being researched and developed by the Aviation Industry, fully considers the requirement of green and environmental protection in design. Compared with Saving million liters diesel every similar aircraft models on the market, the cost for the direct use of “MA700” will decline by 10%; The carbon dioxide emissions 8.1 will decline by 20% and nitrogen oxide emissions by 30-50%, and field noise exceeds to the standard requirement. The MA700 gains month compared with traditional fuel mode more obviously competitive advantages for medium- and short- range routes, becoming the global mainstream model of the next- generation turboprop regional aircraft and the most highly-efficient and environmentally-friendly transport machine to gather and evacuate passengers between small- and medium-sized cities as well as hub cities in domestic and foreign regional aviation markets. Decreasing 1,500 tons emission load of carbon pollution
Highlights Promote Clean Production, Create Green Aviation
The AVIC China Flight General Aviation Limited Liability Company demand for air purification equipment, which can effectively remove undertook the scientific research and test flight projects of civil the harmful substances such as haze, smoke, dust, mould and aviation, and successfully verified the performance of the Northwest suspended virus as well as the harmful gases such as formaldehyde, Aviation Emergency Rescue Ground-Air Linkage (Brush Fire) toluene and TVOC in indoor air, and purify the air. Once the product Monitoring System. The Northwest Aviation Emergency Rescue was introduced for testing in North America and Europe, it was highly Ground-Air Linkage (Brush Fire) Monitoring System, aiming to solve preferred by consumers. the problems of the discovery and treatment of brush fires, includes a ground-air linkage information platform and navigable enterprise In September 2017, the Energy-Efficiency Testing Laboratory operation monitoring module, which can complete grid-based docking constructed and endowed by the Aviation Industry received the CNAS management with local functional departments and solve the problem Laboratory Accreditation Certificate, and obtained the status of formal of brush fires that has been plaguing northern China for a long time. membership of the IAF, ILAC, APLAC and PAC and the signing of the Thus, it will help reduce the environmental pollution caused by haze in international mutual recognition agreement. The Energy-Efficiency winter. Testing Laboratory, under the guidance of the Aviation Industry Energy-Efficiency Technology R&D Center, is dedicated to building a AVIC Hefei Jianghang Aircraft Equipment Corporation Ltd. uses the professional consulting service organization with distinctive aviation state-level enterprise technology center as a platform and utilizes industry characteristics, providing technical support and consulting advanced aerial oxygen production and supply technology to develop services for energy conservation and emission reduction in the aviation high-, mid-, and low-grade oxygen production and air purification industry, improving energy-efficiency and cost-reduction, helping the equipment for different markets such as export, medical, special, and Group’s energy conservation and emission reduction, and serving the home uses, and achieve the design and R&D for different levels of green development of the aviation industry.
2017 Social Responsibility Report 45 Innovation • Aviation
48 Independent Efforts, 03 technological Innovation 50 Deepening Reform, management Innovation
We should pay close attention to the development trend of military science and technology and weaponry in the world, highlight the coordinated innovation of military-civilian science and technology in key areas, promote the integrated demonstration and implementation of major scientific and technological projects, and strive to seize the strategic commanding heights of technology innovation. We should strengthen the concept of openness and sharing, resolutely break the closed monopoly, improve the optimal allocation of scientific and technological innovation resources, tap the potential of scientific and technological innovation in the whole society, and form a vivid situation in which national defense science and technology innovation strive in competition.
We should persist in deepening the reform of state-owned enterprises, focus on the innovation of institutional mechanisms, accelerate the establishment of a modern enterprise system, and bring into full play the enthusiasm, initiative and creativity of all kinds of talent in state-owned enterprises, and stimulate the vitality of various factors.
—— Quotations from President Xi
Innovation • Aviation
Independent Efforts, Technological Innovation
Independent innovation is the driving force source for the spanning development of the Aviation Industry and each aircraft’s successful development the conglomeration of the wisdom and refined innovation of millions upon millions of Aviation Industry personnel.
Technological innovation is the strategic support for improving It is incumbent on the Aviation Industry to implement innovation- social productivity and comprehensive national strength, and driven strategies. We have broadened the construction of the must be placed in the core position of the country’s overall institutional system of technology innovation, led the leaps in situation. General Secretary Xi Jinping requires that military development with independent innovation, achieved good results, technology workers shall be “unconventional and wonderful and realized a historic progress in the construction of China’s thinkers, possess unique mental acumen, and blaze new trails”. aviation equipment from tracking development to independent These three ideas embody the eager expectations of the party innovation. and the country for improving independent innovation capabilities.
Highlights Breakthrough of Technology Cluster, Winning of Multiple Awards
In 2017, the Aviation Industry actively conducted technical research, fully broke through key technologies, and accelerated the upgrade of products. The R&D results of airborne network break through the foreign technology monopoly; comprehensive treatment and mechanical and electrical management have made new technological breakthroughs, laying the foundation for model applications; the domestic operating systems have broken through key technologies and have built an industrial development ecological chain; multiple technological studies have made new breakthroughs in the auxiliary power and have been used in engineering applications; the domestic leading advantages of CFD continue to be consolidated. Autonomous control and independent innovation have achieved remarkable results and won the “Best Innovation Award for Autonomous Control” of the China Computer Federation in 2017. The field of scientific and technological progress has won many awards.
The project of High-speed Train Control Safe Computer Platform of AVIC Automatic Control Research Institute won the gold award of China’s Military and Civilian Dual-use Technology Innovation and Application Competition. This also is the first use of aviation safety technology in China’s independently developed train control system, in which a series of core autonomous technologies, such as open and high-reliability computers, serial backplane bus technology and core chips, have been successfully applied in the project. This not only achieves efficient R&D based on mature technologies, but also breaks through foreign technical blockades and restrictions, complements the shortest board of the automation of high- speed rails. In the next 5 years, it will equip the Fuxing standard EMUs and other high-speed rails. The Aviation Industry Measurement Institute used the self-developed “Undersea Skyeye” - immersed tube motion attitude monitoring system for real-time measurement, which successfully solved the problem of submarine engineering precision control and ensured the successful completion of the immersed tube tunnel project. The scientific and technological achievement of the technology won the second prize National Science and Technology Progress Award.
48 Aviation Industry Corporation of China, Ltd. Highlights Build “Internet+” platform, Propel Applied for patents in the year 8,798 the integration of “information and industrialization” and innovative and Increasing 11% year on year entrepreneurial In 2017, the Aviation Industry used the “Internet+” platform to further propel the integration of “informationization and industrialization” as well as entrepreneurship organizations were passed in the implementing and innovation, and achieved remarkable results in the deep integration of 41 “Internet + Innovative and Entrepreneurial + Made in China 2025” . standard evaluation of “information and industrialization” The aviation industry has promoted the “in-depth informationization and integration of Ministry of Industry and Information industrialization integration” and promoted the transformation and upgrading by utilizing the innovation and development of information technology. Has Technology of the People's Republic of China Ranking carried out multi-project parallel collaborative digital platform construction, and constructed three-dimensional digital application system for the whole process, making the development model transformed into large system integration, high in central enterprises parallel and multi-organization collaboration, to greatly improve the efficiency and quality of model development. The unified IT architecture documents are released, providing a complete picture for the business architecture and IT architecture design and governance of each unit. Due to the remarkable success of the informationization and industrialization integration, the Ministry of Industry and Information Technology of the People’s Republic of China has set up the “innovation experience center” and “industrial software research and development base” utilizing informationization and industrialization integration at Aviation Industry. Five units of the group company have been rated as demonstration enterprises for the implementation of the informationization and industrialization integration management system, accounting for 1/10 of all the recommended units, ranking first among the central enterprises.
The “innovation and entrepreneurship” Reduced assembly coordination integration innovation has shortened issues by more than the final assembly cycle of a certain project by more than 1/3 70%
In 2017, the aviation industry carried out the national “Innovative and Entrepreneurial” initiative, gave full play to the advantages of high-tech industries, and actively explored and promoted “innovation and entrepreneurship” work in accordance with the development ideas of “building platforms, constructing ecosystems, going-out and bringing-in” with “innovative and entrepreneurial initiative plus military-civilian integration” as the goal, to construct an open ecosystems for the whole society. Through these efforts, the work under “Innovative and Entrepreneurial” initiative has assumed a good momentum of development. “Avicui” has become one of the important “innovation and entrepreneurship” network platforms of central enterprises, with more than 380,000 registered users, over 5000 online users, and 12,000 entrepreneurial resources gathered; directly serving more than 3,000 small and medium-sized enterprises, linked up with more than 1,000 projects with demand for science and technology that local governments have identified; jointly built 10 regional “innovation and entrepreneurship” bases together with local governments, attracted intended investment capital of RMB10 billion, and made nearly 100 high-quality projects come to fruition. Promoting driving through “innovation and entrepreneurship”, the aviation industry has not only injected new momentum for its own innovation and development, but also added new impetus for social innovation and entrepreneurship, and has played a good demonstration and driving effect, which has been selected among the national top ten typical practices of “Internet + innovation and entrepreneurship,” approved as an “innovation and entrepreneurship” demonstration base by the National Development and Reform Commission, and become a member of the “innovation and entrepreneurship industry alliance” of the Ministry of Industry and Information Technology.
2017 Social Responsibility Report 49 Innovation • Aviation
Deepening Reform, Management Innovation
The aviation industry is actively promoting enterprise reform and carrying out management innovation.
Highlights The body can be also healthy when it is thin, and the main business can be strong when its strength is gathered.
2017 was the second year for the group company to implement the group was improved through withdrawing from auxiliary business and decision making and deployment of the Party Central Committee and optimizing the allocation of industrial resources So far, the national SASAC on promoting supply-side structural reform and the special economy industries that the Group Company is involved in have work of “weight reduction, health and quality improvements and fallen from 75 kinds to 62, and a total of RMB45.1 billion has been efficiency increases”, and was also one hardest and most difficult recovered, which can be fed back into the main aviation industry. years of work, in which the quality of economic operation of the
Eliminate enterprises of “No Factory Site, No Factory Name and No Business License” and complete the indicators of 23 of them.
Reduced levels and decreased the number of companies. There was a cumulative reduction of 616 enterprises and a net reduction of 364. There are 7 corporate hierarchy levels and 6 management levels after reduction, and SASAC has reduced the assessment of full score.
Focus on the main business. Complete withdraw from five major businesses; An agreement on the withdrawal from 2 major businesses has been preliminarily reached; 41 real estate companies have been transferred, and a capital return of RMB23 billion has been achieved.
“Disposal of zombie and most needy enterprises” Completed the disposal of 27 zombie and most needy enterprises.
50 Aviation Industry Corporation of China, Ltd. Highlights Steadily promote reform of mixed ownership, and give full play to the role of capital.
AVIC SCC was listed successfully
The aviation industry thoroughly studies and implements decision- strategy for aviation industry development, and makes full use of making and deployment of the central government, takes the mixed social resources and capital market to promote development. ownership reform and military-civilian integration as an important
In 2017, the aviation industry carried out major asset restructuring projects and successfully made its aviation industry, Shenyang Aircraft Corporation listed, which has become a military industrial enterprise listed as a core military industrial asset. After the reorganization and listing, Shenyang Aircraft Corporation will create the mixed ownership system development model, continuously enhance the state-owned capital allocation and operational efficiency, and improve market-oriented resource allocation and corporate governance and marketization management through capital market operations.
On December 13, SCC Co., Ltd., a subsidiary of Aviation Industry, was listed on the Shenzhen SME board with the stock code of 002916. SCC Co., Ltd. has explored and implemented the reform plan of “full coverage of dynamic mechanism reform” in the process of listing and has solved the problem of how to implement effective incentives to all levels of enterprises. The implementation of equity incentive for senior executives (7% of the shares held by senior executives) solves the AVIC SAC Commercial Aircraft Company Limited was listed in close-knit management of senior executives; For frontline employees, Shanghai stock exchange compensation general contracting is implemented, which means that In early 2017, the AVIC Hefei Jianghang was listed by the National the original timing compensation way is changed to compensation Development and Reform Commission as one of the three pilot payment according to the results of the output, specifically , the enterprises for the mixed reform of military industry. In addition, the company will give the factory primary general contracting amount Group Company selected two directly subordinated companies according to the output of the factory, with reference to the gross profit, of electromechanical system company and Shenyang Aircraft and the factory will allocate to each working procedure and then to Corporation and two third-tier companies of Hongguang and Anji to the individual. The successful listing of SCC Co., Ltd. has realized the carry out mixed ownership system reform pilot within the group, and perfect combination of mixed reform incentive and borrowing capital made steady progress in various reforms. leveraging.
2017 Social Responsibility Report 51 Innovation • Aviation
Highlights Innovation creates results, and Harvard will present an award. In 2017, the aviation industry organized the ninth management innovation achievements review, selected 49 award-winning achievements, and passed first-prize defense sharing results. Among them, there were 8 first prizes, 17 second prizes, and 24 third class prizes. On the basis the review of the group, all enterprises and institutions actively took part in the national and industrial management innovation achievement evaluation activities, and there were a total of 6 achievements winning the 24th national enterprise management modernization innovation achievement award of China Enterprise Confederation (1 first prize and 5 second prizes); There were a total of 21 projects winning the 2017 national defense technology and industrial enterprise management innovation achievements (6 first prizes, 7 second prizes and 8 third class prizes).
The 9th management innovation achievements of aviation industry 8 first prizes 17 second prizes 24 third prizes
On November 5, Cheng Fei of Aviation Industry was invited to participate in the 2017 China annual conference of Harvard Business Review and received the Ram Charan management practice award of 2017 Harvard Business Review selected with “last kilometer” of the realization of the target of the large-scale state-owned enterprises: the construction and realization of a comprehensive performance management system for employees based on consensus and development as the carrier. The Ram Charan management practice award is a world-class non-profit award, hosted by the Chinese edition of the Harvard Business Review, which represents the latest trends of current management practices. In fact, this is the first time the Harvard Business Review has held such an annual conference in China; in the future, the case will be published by the Chinese version of the Harvard Business Review and a lecture tour will be arranged.
52 Aviation Industry Corporation of China, Ltd. 2017 Social Responsibility Report 53 Finesse • Aviation
56 Aviation Glory, Employee Finesse 04 62 Help Those in Need and Distress, Finesse in Public Welfare 68 Global Citizen, Finesse Overseas
Technicians and workers are the most valuable assets of an enterprise. The enterprise shall ensure the stability of the team and mobilize its enthusiasm.
Only wealth with love is truly meaningful wealth, and only enterprises that actively bear social responsibilities are the most competitive and viable enterprises.
It is necessary to practically strengthen pragmatic cooperation, actively promote the construction of the Belt and Road Initiative, seek convergence of interests with all parties and promote win-win cooperation through pragmatic cooperation. It is necessary to earnestly implement the correct concept of justice and interests, and do well in foreign aid work, so as to promote of justice and achieve win-win results.
—— Quotations from President Xi
Finesse • Aviation
Aviation Glory, Employee Finesse
Persist in carrying forward the spirit of great country craftsman, and care for the growth of employees. Remain en- thusiastic in community construction, active conduct relief and poverty alleviation, and organizing charity activities in the long term. In response to the strategy of the Belt and Road Initiative, and in order to display the image of “global citizen,” the aviation industry shows the elegant demeanor of excellent corporate citizens in multiple dimensions.
The aviation industry has always paid close attention to the talents, and has actively provided momentum and dissemination cultivation of talent, to help excellent technical expertise and through mentoring. It is truly because these people are manning “great country craftsmen” constantly emerge; in particular, it has their posts, keep improving and make selfless contributions that taken a series of innovative measures such as organizing skills the aviation industry has realized the transformation from overall contests and establishing model worker innovation studios, following in the past to side-by-side running at present. which have set up a broad platform for the growth of excellent
Labor contract Staff social security Number of personnel signing rate participation rate
457,747 100% 100%
56 Aviation Industry Corporation of China, Ltd. The number of female Recruit new graduates Units of the group at all levels employees Staff training funds input RMB
143,715 19,534 489 million Number of minority Staff turnover Training time per capita employees
15,028 8.5% 10 Days
Expat employees (The number Introduce foreign talents The number of times trained abroad of overseas enterprises) 28,384 58 21 Times
Female ratio of The total number of management personnel persons trained abroad
32.20% 232
The number of scientific and The number of the above scientific and technological 377 technical personnel talent at the national level Academicians of the two institutes 12
The number of experts that enjoy a special subsidy 81,175 from the State Council 2,500
The number of young and middle-aged experts with prominent contributions at the national level 43
The number of talents selected for the national new century talent project 43
The number of winners of China skills award 6
The number of technical experts in China 168
2017 Social Responsibility Report 57 Finesse • Aviation
Aviation industry “Elegant book·Aviation” whole people reading activity Highlights AVIC whole people reading activity of “Elegant book ·Aviation” Whole people reading, aviation fill with elegant book
April 2017, aviation industry practiced proposal of national people recommended by 110 units, 1012 various reading activities were reading, and started up “Elegant book· Aviation” at the eve of the 22nd organized, 0.1183 million staffs were participated in it, and it achieved World Reading Day, began in-depth, extensive and lasting staff reading good effect. activities in all industry. Every unit responsed actively, 778 books were
Aviation industry “Elegant book • Aviation” kick-off meeting
58 Aviation Industry Corporation of China, Ltd. Highlights A Group of craftsman in a great country, the model of devotion to work.
In 2017, CCTV’s “China Dream • Labor Beauty” – the special program to and enriching the people by aviation,” of employees of the aviation celebrate May Day, the International Labor Day was broadcast on CCTV industry and the determination and confidence of forging China’s Channel 1, twelve chief designers from Aviation Industry and 8 members weapons. This is the first gathering of 12 masters and a concentrated of “Luo Yang Youth Commando” respectively went up on the stage and demonstration of the spirit of the craftsmen in the aviation industry. showed the initial intention of “serving the country, strengthening the army
“Iron forged into steel for thousands of years, serve aviation with hearts and feelings. You devote yourself to the success of AVIC Industry whatever difficulties and hardships. It’s been a long time from inheriting to innovation, and your heart no longer vacillates before problems. Stick to the ordinary and outstanding achievements without defects in quality. You have done what you did for AVIC Industry.” —— Award speech given to Wang Gang by the jury
In September, Aviation Industry Wang Gang won the title “Central In November, Xue Ying, deputy to The 19th National Congress of the Enterprise Model”. As the chief technical specialist of Aviation Industry, CPC and chief technical specialist of Aviation Industry, won the honor Wang Gang, has been in milling industry for 18 years. He has made “The Sixth National Moral Model” (for professional dedication). Since some new breakthroughs in the processing of special materials and December 1992, Xue Ying started her journey pursuing her dream the application of special techniques, innovated “positioning method in the position of assembly riveter of Aviation Industry. By May 2017, of irregular surface clamping”, and solved the problem of the key parts Xue Ying team had delivered more than 5000 aircraft vertical tail lips. processing in the model development. The milling with accuracy above The products they produced were approved for quality exemption by 0.005mm and the reaming and boring with accuracy of 0.002mm created Boeing, and she was granted the certificate “Customer Satisfaction by him are in the top level of the milling industry; he kept no records of Employees”. processing waste for 18 years. He created 600 technological innovations and production improvements, two of which won the national patent, making great contributions to the intergenerational development of China’s aviation equipment.
2017 Social Responsibility Report 59 Finesse • Aviation
In 2017, the employees of Aviation Industry and Yang Wei, deputy director of State Scientific and Technological Commission, general designer of VII types fighter, including Chengdu J-20 aircraft, reached another pinnacle in their lives.
· On March 23, the National Day of the Islamic Republic of Pakistan, Yang Wei, the deputy director of State Scientific and Technological Commission of Aviation Industry Corporation of China, general designer of Chengdu FC-1/ JF-17 developed jointly by China and Pakistan, was granted the National Medal of Meritor, the “Star of Excellence” by president Mamnun Hussein at the Presidential Palace in Islamabad.
· On May 27, Yang Wei received the first “National Innovation Medal” jointly awarded by the Ministry of Human Resources and Social Security, CAST, Ministry of Science and Technology and SASAC of the State Council.
· On October 24, Yang Wei was elected alternate member of the 19th Central Committee of the Communist Party of China.
· On October 25, Yang Wei was awarded the Ho Leung Ho Lee Fund for science and technology progress award 2017.
· On November 28, Yang Wei, the deputy director of State Scientific and Technological Commission of Aviation Industry and the general designer of To the Chengdu J-20 of 2035 Chengdu J-20, was elected academician of Department of Technology and Science, Chinese Academy of Sciences. He specialized in Aircraft Design and Flight Control. This is the highest academic title in science and technology in China.
· In December, Yang Wei wrote a letter to the Chengdu J-20 of 2035.
60 Aviation Industry Corporation of China, Ltd. Academician Guan Qiao is awarded “IIW Fellow Award”, which is the first award won by Chinese in this field
Cao Hongguo, a righteous and courageous aviation worker
“A passenger called Cao Hongguo helped us subdue one violent passenger and he was injured in this brave fight. He helped our crew a lot and played a very positive role in making this plane safely landed in Beijing.”
A personal thank-you letter written by KennethPellegrino, Captain of Ethiopian Airline
On March 18, something thrilling happened to Ethiopian Airline ET604 for many years and has led and executed multiple important projects flight, flying from Addis Ababa to Beijing, when a man angrily barged of the Aviation Industry. He made great contributions to countries and into the cockpit. An employee of the Aviation Industry, Cao Hongguo, people in Africa and won many awards, such as “Excellent Team” and happened to be on this flight, he threw himself into the melee and fought “Excellent Employee”. He is also one of countless employees from the assailant in close quarters until finally, with the help of the crew, he Aviation Industry who “go-out”. These employees work quietly in every was subdued and over 200 passengers on that plane arrived in Beijing corner of the world, but when danger comes, they put themselves safely. forward to face the danger without any hesitation! The decisiveness and bravery of Cao Hongguo were highly praised when publicized. Cao Hongguo has been working in countries along the “Belt and Road”
2017 Social Responsibility Report 61 Finesse • Aviation
Help Those In Need And Distress, Finesse in Public Welfare Since the 18th National Congress of the Communist Party, the Party call. It worked tirelessly for 20 years on poverty alleviation and made Central Committee with Comrade Xi Jinping as the core put the remarkable achievements. When facing social emergencies or vulnerable poverty relief and development in an important position of governance. groups such as poor children, the Aviation Industry and various units Aviation Industry Corporation of China,Ltd (Aviation Industry) began to actively organized their employees to give a hand, do charitable undertake the national task of fixed-point poverty alleviation in 1993, it donations and volunteer activities, assuming the social responsibility of pays high attention to this matter and actively responds to the nation’s helping the poor and the distressed to the largest extent.
Highlights Poverty alleviation must be accurate, problem solving requires innovation
Aviation industry starts up “Love Aviation” mild winter activity of poverty alleviation by education
Since it started to undertake the national fixed-point poverty alleviation designated over 120 residential village cadres, residential major village task in 1993, Aviation Industry targeted 5 impoverished counties in secretary and service deputy county mayors who are involved in poverty Guizhou and Shaanxi provinces. It bears the most poverty alleviation alleviations directly. They carried out 532 poverty alleviation projects tasks among the military industrial enterprises. Other than poverty of all types ranging from industrial development, education funding, alleviation of the 5 fixed-point impoverished counties, various units also infrastructure and improvement of people’s livelihood, to the environment undertake multiple poverty relief tasks arranged by several national and invested RMB80 million. These projects greatly improved the local ministries and departments and local governments. In the last 25 years, people’s living and production standards, the poverty-stricken area the headquarters of the Aviation Industry has spent over RMB40 million in finally changed and the Party Central Committee and the State Council’s poverty alleviation cumulatively. Over 70 member units under the Group requirements regarding poverty alleviation were fully implemented. At Company targeted 64 impoverished villages and spent RMB43.3 million. the same time, Aviation Industry constantly held the activity of “Love • In 2016, Aviation Industry contributed RMB300 million and became the Aviation”. It purchases agricultural products from the targeted poverty- first initiator of the Poverty-Stricken Area Industry Investment Fund of stricken area, organizes “blue chalk” public education activity, provides Chinese Enterprises. In 2017, various member units continue to carry gratuitous diagnosis for the poor area and perfects the medical conditions, out the targeted helping tasks and invested 8 million and donated RMB2 displaying the great love of aviation people and establishing a good social million worth of articles. Over the past 25 years, the Aviation Industry image of Aviation Industry.
62 Aviation Industry Corporation of China, Ltd. In Shuijing Village of Puding County of Guizhou, there is a clear lotus root industrial chain -- use the lotus leaf to make lotus leaf tea. When the lotus flowers bloom, hold lotus flower festivals and attract urban visitors with tourism items such as rural inn and barbecue; the seedpod of the lotus can be sold and the dry lotus seed can be made into crafts; when the lotus stem dries up, the loaches and finless eels cultivated in the mud can be harvested; and don’t forget, the lotus root is a very delicious dish. Currently, the planting scale of lotus in Shuijing village has reached over 1,000mu (1 mu=roughly 7 acres); It cooperates with adjacent village and expands the scale to 2,000mu, and has become the largest lotus planting base in Anshun.
Farming and aquaculture poor households of Shuijing Village, Puding County held the first “Shareholder dividends meeting”. 168 households were engaged in this meeting and each household gain RMB500.
Country agricultural technology training
One-on-one in house Li Yuhai, Deputy Secretary of Party Committee and Deputy General Manager of AVIC investigating on poverty alleviation. Aviation Industry spent RMB300,000 to initiate the construction project development of industry by the poor households. After that, the Aviation of organic and ecological tea garden in Huilong Village of Xixiang County Industry spent another RMB128,000 to initiate care of and replanting of Shaanxi. By land circulation, after the village collective operates and of a 120mu organic and ecological tea garden. Each household is manages the lands for three years, the land will be transferred to the subsidized with an industry development fund of RMB5,000 and appoint households to operate and manage for free. In the same year, 120mu a person to tracks and supervises along the way. A file is established tea garden of 27 households was implemented by land circulation, for each of the 12 poverty-stricken households and help 12 willing poor including 55.2mu from 12 poverty-stricken households, who enjoyed households to develop industry and get rid of poverty, thus truly realizing a gain in income of RMB600 when the project was implemented. accurate poverty alleviation and income increase. According to the Additionally, Aviation Industry helped Huilong Village set up a professional statistics, newly developed 10mu of tea gardens, 2mu of forest fruits, tea cooperative which attracted 23 poverty-stricken households. This 2mu of lindera aggregata, 5 cows, 28 goats, 1000 chickens and 6 labor association provides special funds and technical support for concentrated exports.
2017 Social Responsibility Report 63 Finesse • Aviation
Highlights Publicize the aviation dream, benefit the citizens by popularizing science
Various units of the Group organize several activities to popularize aviation knowledge and transmit aviation cultures to improve the citizens’ aviation awareness, motivating all citizens to become the participants, promoters and practitioners of the national strategy of building a strong nation of aviation industry.
AVIC, a general aviation brand under the Aviation Industry holds aviation carnivals with flying themes in many places every year to disseminate the aviation cultures and realize people’s dreams of flying, it has become an aviation popularization card targeting at aviation fans around the nation.
The first “General Aviation Day” popular science activity of Special Aircraft
Fighter Theme Park carries out the activity of “Little Interpreter”, which devoted 948 voluntary explanations in a whole year and served over 80,000 visitors cumulatively.
64 Aviation Industry Corporation of China, Ltd. Aviclub public welfare foundation and “Aviclub youth aviation school” public welfare science popularization project bring professional and interesting aviation science popularization feast.
On the first “General Aviation Day” held by Aviation Industry on May 13, Jingment Special Aircraft set up a lecturer group which lead thousands of primary and secondary school students and aviation fans to visit the Geek Park, Aviation Culture Exhibition Center, Airplane General Assembly Line and host aviation lectures, allowing face-to-face communication and interactions with primary and secondary school students and aviation fans.
Chengdu Aircraft Industrial Co., Ltd., Harbin Aircraft Industrial Co., Ltd and Guizhou Airlines affiliated with Aviation Industry organized various aviation popularization activities in schools and communities. They held lectures, model airplane flying demos and hand-made model airplane sessions to disseminate aviation science and popularize the dream of “serving the country through aviation”.
2017 Social Responsibility Report 65 Finesse • Aviation
Highlights Fear nothing at emergency rescue, strive to be the first to provide disaster relief
In July 2017, affected by heavy rainfall, the water level in the Wuhan section of the Yangtze River rose rapidly. Wuhan City initiated a Class III emergency response. According to the requirements of the flood prevention headquarters, Wuyi of the Aviation Industry quickly organized a militia emergency rescue team to perform 24- hour shift inspections of dykes and patchingburst pipes. The rescue team overcame difficulties such as mosquitos, poor living conditions, among others, and stood fast for nearly a month and successfully completed the mission. The team has been highly commended by municipal leaders.
On August 8 and 9, Jiuzhaigou of Aba in Sichuan and Jinghe county of Xinjiang suffered from a 7.0 magnitude and 6.6 magnitude earthquakes and caused 19 deaths and 279 injuries. The Aviation Industry dispatched a team once they received the order and quickly engaged in the earthquake relief.
Y-9 scrambling and flying directly to the earthquake-stricken area in Jiuzhaigou to take aerial photos of the situation.
Aviation Industry’s Wuyi organized militia to go to Tianxingzhou The Medical team of Chengdu Aircraft’s Hospital arrived at county for emergency rescue Jiuzhaigou County and began its rescue immediately
66 Aviation Industry Corporation of China, Ltd. Highlights Eight years of Blue Chalk benefits twenty thousand people
“Blue chalk” public welfare action has lasted for 8 years
In July 2017, 38 famous teacher volunteers from Shenzhen and Beijing conducted public welfare training for more than 3,000 primary and secondary school teachers in 151 schools in Yudu and Leizhou. The eighth “blue chalk” teacher-recruiting and supporting education of the Aviation Industry ended successfully. This year’s “blue chalk” also recruited 3 student volunteers who engaged in the entire training process and experienced the public welfare atmosphere, this will cultivate their awareness of public welfare. Besides daily training, the Aviation Industry held the “Small Flying Man” aviation popularization activity in Leishan for the first time and brought vivid and interesting popularization knowledge to local primary and secondary students.
The “Blue Chalk” Public Welfare Campaign was initiated and hosted by Aviation Industry and jointly organized by the Shenzhen Charity Association, the Shenzhen Care Office, Futian District Education Bureau, and the Chaoyang Education Commission of Beijing. It aims to recruit outstanding role modelteachers to be volunteers who provide training for teachers in primary and secondary schools in After receiving the order to ensure Y-9 airplanes to participate in poverty-stricken areas. The teachers’ skills will be improved after the the earthquake relief, the guarantee team of AVIC Shaanxi aircraft training, and then they can work with many cohorts of students and Industry (Group) Corporation Ltd. in Sichuan immediately launched bring positive changes to education in the poverty-stricken areas. an emergency plan and continued to cooperate with the troops all night long to carry out the task. At 8:00 a.m. on August 9, two Y-9 The “blue chalk” hasn’t stopped since 2010. A total of 200 trips have planes were ordered to rescue the disaster area in time; another been made by excellent teachers volunteering for public welfare two Y-9 “rescue airplanes” were also ready to take off at any time. trainings in 20 counties of Guizhou, Sichuan, Jiangxi and Jilin, a campaign which benefited more than 20,000 teachers in 8000 primary and secondary schools. In March 2017, the “blue chalk” project won the “Best Volunteer Project Award” among the “Four 100” advanced typical activities in the promotion and the selection of Lei Feng’s voluntary service organized by the Central Propaganda Department, the Central Organization Department, and the Central Civilization Office.
2017 Social Responsibility Report 67 Finesse • Aviation
Global Citizen, Finesse Overseas
Highlights Build a Silk Road in the air and make a name overseas
The Aviation Industry actively implemented the Belt and Road The cross-border mergers and acquisitions of Austrian FACC Initiative, it focuses on the areas of interconnection, industry Advanced Composites Company, the United States Cirrus General investment and trade cooperation to promote production output and Aircraft Company, Continental Airlines Engine Company, American transnational operations. On May 9, 2017, with its own industrial Aviation Standard Parts integration Supplier Ailian Company, the characteristics, the Aviation Industry officially proposed the “Aerial United States Nexteer Car Steering System Company, etc. have Silk Road” initiative, which filled the void of the Belt and Road achieved good growth. The company has taken a solid step in Initiative at Aviation Industry. The Group Company promoted and international operations and has become a “national business card” implemented “Sino-Africa Regional Aviation Cooperation Plan”, of going-out. accelerating the “going-out” of domestic civil aircraft and building an “aerial silk road”.
Tupou VI, King of Tonga is experiencing the “MA” 60 African passengers on MA60 are smiling
the Aviation Industry has amassed It has set up overseas offices in RMB billion in overseas assets 65 111.1 countries along the “Belt and Road” nearly overseas employees 30,000 cover 28 countries 295 overseas offices In its international business revenue, nearly is generated by the covering countries and regions 50% 84 countries along “Belt and Road”.
68 Aviation Industry Corporation of China, Ltd. Mobile hospital in Africa built by Aviation Industry
Africa is a key area for the overseas development of Aviation Industry. While developing its business in Africa, Aviation Industry has never forgotten the idea of “creating a better world beyond commerce” and has carried out vocational education, mobile hospital building, and training of national youth service teams and other livelihood project in African countries, dedicating to improve African youth’s skills and employment and improve local medical standards.
In November 2017, Aviation Industry held the fourth Africa Tech Challenge in Africa. The ATC competition originated from the original intention of the Aviation Industry to “repay Africa and benefit the local community”. It hopes to promote local youth’s skills for employment through professional skill training and competition as well as the relevant industrial chains of aviation industry in Africa and China. The ATC has been held for 4 times since 2014. It covers 4 African countries and has cultivated hundreds of skilled talented professionals; it selected 6 excellent African young people to pursue advanced studies in China; and provides orders for 4 schools, which promote the development of local industry and education combination.
The fourth Africa professional skills challenge competition of AVIC is beginning.
ACT explored a new mode for Chinese enterprises to practice their social responsibilities overseas and is highly welcomed and commended by local governments and Chinese embassies and consulates in African countries.
2017 Social Responsibility Report 69 Looking forward to 2018
2018 is the starting year for implementing the spirit of the 19th National Congress of the Communist Party of China and the 40th anniversary of reform and opening-up. Facing the new era for aviation industry, it carries on the country's strategy and puts out the grand objective that, by 2035, China will be basically built into an aviation power in the new era and the Group will become a world-class aviation industry group; and by the middle of the century, China will be completely built into an aviation power in the new era and the Group will become a world leading aviation industry group, which indicates the direction for the future and subsequent development.
In 2018, we must comprehensively implement the spirit of the 19th National Congress of the Communist Party of China and the deploy of the central government, insist on the general working pace of progress in stabilization, insist on Party building, mission stewardship, openness and win- win, and insist on military consolidation as the foundation, innovation as the first, reform as the necessary, make solid progress on various works and take a firm step for the construction of an aviation power in the new era.
In 2018, for aviation industry, we shall continue to implement the major responsibility of military consolidation and perfectly complete the mission of aviation equipment construction; accelerate the development of civil aviation industry and promote the coordinated progress with principal work of aviation industry; insist on the principle of “Three equals” and expand the business of “Three high”; greatly enhance independent innovation to support the great- leap-forward development for the principle works of aviation; deepen reform and strengthen management for continual improvement of quality benefit; comprehensively promote the strict rule over the party to provide a strong support for reform and development.
70 Aviation Industry Corporation of China, Ltd. Grasp implementation, strive for reform, and promote development. In 2018, in aviation industry, we shall revolve around the work tasks to take responsibilities, grab the weakness, weak links and difficulties, so as to make every deployment implemented and strengthened, and obtaining actual effect.
Ensure the stability, facilitate the harmony and promote environmental protection. In 2018, we need to duly handle the relations of reform, development and stability, and arrange for the laid-off workers due to reform, so as to effectively assure the interests of employees. Based on targeted poverty alleviation, voluntary activities and charitable foundations, we will explore more approaches that combine aviation resources and public interest to continue to feed back the community. We will continue to develop green aviation vigorously, support the development of green, low carbon and environmental economy, and manage our impact on environment through energy saving and consumption reducing, new technology development, and promotion of environmental awareness, etc. to jointly maintain green mountains and rivers and build a beautiful China.
Looking forward to the future, we will continuously take serving the country in aviation industry as the initial mission, and seek the ways to integrate self-development and fulfilling social responsibilities more closely to take more responsibility for society and create more value for stakeholders!
2017 Social Responsibility Report 71 Report description
This report is the eighth social responsibility report released by Aviation Industry Corporation of China.
This report reveals that Aviation Industry Corporation of China, Ltd did not forget its original intention of serving the nation, keeping in mind the mission of strengthening the army, actively fulfilling its social responsibilities, promoting sustainable development, or pursuing the concept, action, results and planning with maximized values in 2017 with a new concept and vision of the new era.
For the sake of facilitating description and convenient reading, “Aviation Industry Corporation of China” is also indicated by “Aviation Industry”, “Group Company” or “We” in this report.
Scope of Organization for the Report
The scope of this report covers the headquarters and various subordinate units of Aviation Industry Corporation of China.
Report time range
January 1, 2017 to December 31, 2017. In consideration of the continuity and comparability of information disclosure, parts of the information content are appropriately extended forward and backward.
Reporting period
The Report is an annual report. The release date of the last report was June 30, 2017.
The Release Form of the Report
This report is available in two eco-friendly formats, including a paper edition and an electronic version. Log in to the Aviation Industry website (www.avic.com) to download the electronic version; Requests for a paper copy of the report may be sent to E-mail: |->|[email protected]|<-|
72 Aviation Industry Corporation of China, Ltd.