- 中国航空工业集团公司
Transcription
- 中国航空工业集团公司
Postcode: 100022 Tel.: 010-58356041 Fax: 010-58356979 E-mail: csr@avic.com Wechat: AVIC-2008 Aviation Industry Corporation of China Address: AVIC Plaza, No.128, Jianguo Road, Chaoyang District, Beijing City Micro-blog: AVIC mic with us Social Responsibility Report 2014 AVIC official wechat Wechat: AVIC-2008 AVIC official micro-blog http://weibo.com/u/3061210763 This report is prepared in green environmental hard copy and electronic copy Social Responsibility Report 2014 AVIC official website http://www.avic.com.cn/ AVIC Together with the motherland Together with the world Together with us …… Social Responsibility Report 2014 Content About Us 04 AVIC Ecological Map 06 Speech of Chairman 08 Speech of General Manager 09 Implementation and Management of Responsibility 10 Retrospect and Prospect 74 Appendix76 About the Report 85 AVIC in the Blue Sky AVIC around Us AVIC with Safety First Self-disciplined and Responsible AVIC Green development of the AVIC AVIC moving toward the world (special topic) The sound of reading in the mountains (special topic) 18 26 36 44 52 58 68 Eagles soar in the cloud, cruising for peace 19 People know you well around the world as a neighborhood 28 AVIC in pursuit of safety 37 Construction of environmental management system 53 AVIC over the seas 59 Doves flutter in the sky, spreading wings for development 21 It lies in the life instead up in the clouds 32 AVIC manufacture focusing on quality 40 Law-abiding and selfdisciplined, innovative and progressive 45 “Blue Chalk” of the teacher recruitment and supporting education 69 Care for employee, pay back the society 48 Development of low-carbon ecological industry 54 Localized business philosophy 62 Sponsorship and Assistance – “Parents’ Love” 70 Carry out energy conservation and consumption reduction action 56 To be a friendly and sincere international citizen 64 About About Us Us An independent and integrated China aviation manufacturing system One of the World Top 500 Multi-National Corporations The guardians of sky and peace The neighbour around us Flying dreams, our Chinese dreams 04 05 Aviation Industry Corporation of China (referred AVIC owns subsidiaries (branches) distributed to as “AVIC”) is an aviation-oriented corporation, in more than 30 provinces and cities, and 182 who can provide complete services to customers overseas agencies, offering products and service in many fields – from research and development for both military and civil fields for the customers in to operation, manufacturing and financing. Its China, as well as in over 180 countries and regions predecessor was founded in 1951 and the Aviation of Asia Pacific, Europe and the United States, and Industry Corporation of China (AVIC) was founded Africa. Since our establishment in 2008, we have on November 6, 2008 through the restructuring continuously achieved double-digit annual growth. Finance & Planning Department Corporation I (AVIC I) and the China Aviation Industry AVIC, always promise to “serve our country with Human Resources Department Corporation II (AVIC II). The headquarter of the aviation, build a strong army and enrich people”, fulfill corporation is located in Beijing, where we have the idea of “respect and honesty to work, innovation segments of aviation equipment, transport aircraft, and surpass”, and have proposed a development engines, helicopter, avionics and systems, general strategy of “Two integrations, three innovations, five aircraft, research and development, flight testing, upgrades and one Trillion”. “Two integrations” means trade and logistics, assets management, engineering that we need get rid of the old conservative thinking, and construction, automobiles and more. We have instead, form a new idea of opening and cooperation over 200 subsidiaries, 29 listed companies, and so as to achieve integration into both the global about 550, 000 employees. In 2014, AVIC ranked aviation industry chain and regional development 178th among the Fortune Top 500 enterprises for the economic circles; “Three innovations” refers to the sixth time. Group’s core competitiveness. We are committed General Administration Department Strategy and Capital Management Department and consolidation of the China Aviation Industry to transforming and upgrading the Group’s core In addition to the research and development of competitiveness, moving from “the traditional triad advanced aviation weapon equipment, AVIC is of capital, technology, and management” to the committed to developing civil transport industry, new trinity of “brand value, business model, and actively is engaged in the development of major integrated networking”; “Five upgrades” means international aviation projects, and vigorously that we vigorously promote market-oriented reform, develops the aviation subcontract businesses. industry sector consolidation, capitalized operations, international exploitation, and industrial development. In respect of non-aviation industry, AVIC has In the end, we strive for a challenging sales target of integrated high-end aviation science and technology RMB one trillion. i n t o m e c h a n i c a l e q u i p m e n t , s p a re p a r t s o f automobiles, new energy vehicles and other fields. Defense Engineering Department Aviation Industry Corporation of China equipment, environmental protection equipment, new energy equipment. Meanwhile, we provide AVIC Aircraft Co., Ltd. AVIC Engine Co., Ltd. AVIC Copter Co., Ltd. China Avionics Systems Co., Ltd. AVIC Electromechanical Systems Co., Ltd. Department of Science, Technology and Informatization China Aviation Industry General Aircraft Co., Ltd. Department of International Affairs AVIC Asset Management Co., Ltd. Quality & Safety Management Department China National Aero-technology International Holding Corporation Policy and Legal Affairs Department AVIC Technology Foundation Establishment Party-building and Ideological and Political Department AVIC Economy Establishment Chinese Flight Test Establishment Audit Department Disciplinary Inspection and Supervision Department Non-aero Business Department Civil Aircraft Projects Department Engine Project Department We have vigorously developed products, such as gas turbine, electrical devices, refrigeration AVIC Aeronautic Equipment Co., Ltd. Department of Retired Employee AVIC Capital Co., Ltd. AVIC Automobile Industry Holding Co., Ltd. China Aviation Planning and Construction Development Co., Ltd. AVIC Commercial Aircraft Engine Co., Ltd. China National Aero-Technology Import & Export Corporation Joy Air Holding Co., Ltd. various services, including general aviation, aircraft leasing, transportation, medical service, planning and construction and etc. AVIC Heavy Machinery Co., Ltd. AVIC Ecological Map 06 07 天虹 三六 一医 院 Speech of Chairman As one of the important industries and key fields of the national security and the national economy lifelines, AVIC is an important part of the national strategic industry and the national innovation system. Our mission is to serve the security of national defense and economic development.. We are always adhering to be a responsible corporate citizenship, which is an eternal pursuit in our heart. After more than 60 years of vicissitudes, AVIC has gradually grown into a large-sized transnational enterprise that is faithful, willing to bear and responsible, and has grown into a multinational corporation with a 90.5-billion-Yuan brand value breakthrough and the 178th ranking on the Fortune 500. AVIC always regards ‘serve our country with aviation’ as its core responsibility; adheres to military-oriented strategy, while supplying munitions with high quality and efficiency, and guaranteeing military aircraft both are our core; We actively adapt to the military situation and the demand of aviation weapon equipment, then make research, design, and manufacture the aviation defense equipment. As a result, we have made important contributions to increasing military air combat ability, strengthening national defense, and safeguarding national security and economic interests. AVIC always regards civil-military integration as its historical mission. We stick to the idea of “civil-military integration”, develop civil aviation chain in multiple dimension. Also, we devoted to promoting the development of general aviation, and serving people better. We vigorously promote civil aviation to an international level, and then integrate it into the global aviation industry chain, in order to build an image of aviation global power of the east. By focusing on the group development strategy, we have integrated into the local economic circle to stimulate its development. AVIC always pursues undertaking social responsibilities. By sticking to the idea of “green development and harmonious development”, we actively promote the “green manufacturing”. In order to build a green aviation industry chain, we apply to green production and insist on green office. Besides, we secure the consciousness of safe production, integrate the idea of “safety is higher than the heaven, responsibility is weightier than the mountain” into the whole process of production and operation. Insisted on “quality first, quality foremost, quality oriented”, we strengthen the quality management. Insisted on the idea of “develop relying on employees, develop for employees, all the employees share the fruit of our development”, we truly become a people-oriented corporation and develop harmoniously. We always integrate corporate social ability into our own development, put it on our shoulders, and give back to the public with our industry superiority. Say goodbye to 2014, and Outlook 2015. As the core power of national strategic industry and national defense science & technology industry, AVIC will always keep in mind the sacred mission of ‘serve our country with aviation, build a strong army and enrich people’, provide products and service with high-quality, increase the quality and efficiency of development, promote common development for both corporation and employee, promote the harmonious development of economy and environment, build a social responsibility management system, and take a good responsibility of economy, society and environment. In the end, we will forge a new chapter of development with interest related ones. Lin Zuoming June, 2015 Speech of General Manager 08 09 AVIC continued to seek for peaceful development, guarantee national defense security and pay attention to national economy and the people’s livelihood in the past year, and made great contributions to safeguarding national security, stimulating economic development, and promoting the progress of science and technology. In 2014, AVIC made full strength to promote reform, conducted various kinds of task deeply, and carried out the “year of reform and management” activity in a deep-going way, each work obtained new achievements. In the circumstances of facing growing downward pressure of economy, AVIC achieved a contrarian growth. Our annual business income is RMB386.38 billion yuan, with year-onyear growth of 11%. Moreover, we ranked 178th among the Fortune Top 500 enterprises, moving up 34th compared to that in the last year, with a 90.5-billionYuan brand value breakthrough, ranking 25th in the whole country. As a company driven by aviation, AVIC offers the whole value chain services in many fields. In 2014, more than 150 products of AVIC appeared in public at Zhuhai Airshow, which was a milestone of the development of Chinese civil aviation industry and had changed the world’s attitude to Chinese aviation manufacturing. Meanwhile, we had seized the opportunity of revolution on values. Through the development of creative economy, we had achieved the “spillover effect” in the aviation industry, promoting the upgrade and growth of non-aeronautical civil industries and modern service industry. AVIC has made more efforts to carry out the innovation-oriented strategy, acquiring new accomplishments in technological innovation. In 2014, we had acquired 4 National Science & Technology Awards and 86 National Defense Science & Technology Awards. We had applied for 6970 patents. AVIC had constructed the innovation system step by step and built 39 key laboratories of aviation technology. We had promoted the combination of informationization and industrialization in depth and integrated the internal IT infrastructure. We had established an Experience Innovation Center of a deep integration between informationization and industrialization and an R&D base of the industrial software of the deep integration. AVIC has taken the initiative to execute the conception of low carbon and healthy development. Taking the resource conservation and the increase of efficiency in utilizing resources as the core, we have strengthened the management of energy saving and emission reduction. We have strived to make mutual benefits for interested parties with the innovation system and mechanism. AVIC has recruited a large number of talents, providing many job opportunities to the society. AVIC attracts more than 500,000 people around the world. The number of the newly recruited university students is more than 12,000 annually even just in China. AVIC has always regarding the overall management of the employee as the way of enterprise development. In AVIC, technical and managerial talents who have outstanding performance will get the chance to study and get further education overseas. Every year, AVIC funds excellent employees to study for a degree or accept further education in foreign reputable universities. Those returned doctors, masters and exchange scholars are becoming the backbone of AVIC. AVIC seeks to deepen reform unswervingly. We focus on carrying forward the spirit of entrepreneur, carrying out reformation in a complete and thorough way. As a result, we will seek for the “new bonus” of this deepen reform. With the continuous development of AVIC, we should and will pay more attention to maintaining employee interests, undertake public utilities actively, and participate in social management. Besides, we will save energy and reduce consumption, protect the environment, be a public-spirited enterprise who would support the distressed people, and devote ourselves to the social development. Tan Ruisong June, 2015 Implementation and Management of Responsibility 10 11 Model of Concept of Social Responsibility Our Governance It is AVIC’s concept of social responsibility that “take heart as wing to fly with dream”. Here, heart means “loving heart”, and wing means Management Organization of Social Responsibility Board of Directors of the Group “aerofoil”. Taking loving heart as its aerofoil, AVIC will definitely have a bright future, with ideals and dreams flying the blue sky. The model refers to the cross-section shape of aircraft engine, meaning that AVIC will realize the sustainable development under the promotion of strong power, thus it will surely take and fulfill the corresponding social responsibility, so, the model shows the contents, features and guarantee mechanism of the social responsibility performed by AVIC. AVIC’s model of concept of social responsibility is logically composed of the concept of corporation social responsibility, five major support systems and six elements of responsibility. Among them, the concept of responsibility, “take heart as wing to fly with dream”, is the core, which is surrounded by five major support systems for AVIC’s performance of social responsibility, namely, corporate governance, management promoted by responsibility, comprehensive risk management, stakeholder engagement and responsibility culture. AVIC has established the management organizations of social responsibility across the Group. Among them, Office of Social Responsibility which belongs to Comprehensive Management Department of Group headquarters is full-time responsible for organizing and promoting the overall management of social responsibility across the Group. The member units of the Group have special offices as well as fulltime and part time employees of social responsibility, coordinated by the Group headquarters. Strategy and Investment Committee Nominating and Corporate Governance Committee Remuneration Audit and Risk and Appraisal Management Committee Committee General Manager of the Group Comprehensive Management Department of the Group Management office of social Pursuit of the ideal of peace Integrated military and civilian development Corporate governance Responsibility culture Dedication to grow together Take heart as wing to fly with dream Stakeholder engagement Practice of low-carbon environmental philosophy Management promoted by responsibility Quality and safety as the root In September 2014, the Third Session of China Charity Fair cosponsored by the Ministry of Civil Affairs, State-owned Assets Supervision and Administration Commission, All-China Federation of Industry and Commerce, People’s government of Guangdong Province, People’s Government of Shenzhen City, and China Charity Alliance was held in Shenzhen. Having participated in the meeting for three times, AVIC brought a project, named as “Colorful Aviation People”, to show its efforts in charity works, such as scientific popularization of aviation, energy conservation and emission reduction, overseas aid, medical support, earthquake relief, environmental protection, etc., obtaining good social response. Healthy, Security and Environment Management System Comprehensive risk management Adherence to independent innovation As a responsible large-scale integrative central enterprise, AVIC adheres to the green development, and promote clean production. Within the Group, it continues to push AVIC’s Provisional Regulation on Energy Conservation and Environmental Protection Management, and promote the construction of three major system of management organization of energy conservation and emissions reduction, statistical monitoring as well as assessment of rewards and punishments. At the same time, it encourages the member units to implement healthy, security and environment management system. responsibility of each listed company Management office of social responsibility of each member unit Promote member units of the Group to establish the professional management organization of energy conservation and emissions reduction, be equipped with full-time management personnel, and continually improve management network Three major systems of energy conservation and emissions reduction Perfect AVIC’s management information system of energy conservation and environmental protection; print and distribute AVIC’s Provisional Regulation on Statistical Management of Energy Conservation and Environmental Protection Integrate environmental protection index into the annual business plan evaluation index of member units and further implement the target-oriented responsibility system of energy conservation and environmental protection Implementation and Management of Responsibility Internal Control and Risk Management To effectively identify and guard against risks as well as perfect risk management oriented internal control, AVIC released the related system of internal control and risk management, according to the related regulations issued by State-owned Assets Supervision and Administration Commission and Ministry of Finance, as well as combining with its own actual situation. At the same time, according to the actual operation and management and external regulatory requirements, as well as internal control operation and various problems found during the evaluation and audit, AVIC dynamically updated internal control and strengthened the timeliness and operability. The subordinate listed companies and member units also formulated corresponding system of internal control and risk management, build the management and control system of internal control covering group headquarters, section companies and member units. AVIC has established risk management mechanism and carries out the internal control self assessment and the external audit verification on internal control system every year to build the three lines of defense, which are self control of business department, daily test of risk management department as well as annual evaluation and audit of auditing department. 12 13 Mainly Participant Associations and Organizations Name Association office-holding China Federation of Industrial Economics China Association of Enterprises, China Entrepreneur Association China Association of Management of Military Enterprises China Association of Peaceful User of Military Industrial Technology Society of Management of China China Association of Chief Financial Officers Accounting Society of China China Human Resource Development Association China Association for Quality Sino-Italy Commission on Entrepreneurship Presidium unit Vice-president unit Cases of Communication Activities Leader Supporting Online Interaction European Partners Visit to Africa On January 28, Li Keqiang inspected AVIC the First Aircraft Institute. He said that AVIC must take its own road, and praised that employee in AVIC created a new road for the Chinese aviation industry On October 8, Lin Zuoming and JeanPaul HERTEMAN, Chairman and CEO of Safran (France) took part in the interview of People’s Daily Online, and spoke glowingly of Sino-French aerospace power cooperation On February 13th, LI Fangyong, Deputy General Manager of AVIC met with FOLEY, CEO of Airbus Helicopter In June, the delegation from AVIC Aircraft and CATIC went to Africa to pay an official call on President Djibouti and assisted the take-off of MA60 Enterprise Cooperation Coalition of college and enterprise Recreational Performance Scientific Popularization of Aviation I n No v e mb e r, L i n Z u o mi n g me t w i t h POGOSYAN, General Manager of Russian OAK. The two parties signed the minutes of meeting for cooperation matters in various fields O n D e c e m b e r 2 5 , AV I C a n d D a l i a n University of Technology signed a strategic cooperation agreement in Beijing On January 10, CCTV’s “heart-to-heart” art troupe gave a special performance as an expression of gratitude at AVIC Xi’an Aircraft. The art troupe of workers and employee of AVIC Xi’an Aircraft firstly performed Hard Fight on the background of large aircraft development, winning the warm applause On February 20, pupils in Shenyang City went into the Aviation Museum Park of AVIC Shenyang Aircraft to place flowers before comrade Luo Yang’s statue Law Popularization for the Public Voluntary Action Participation in Charity Fair Express Sympathy and Solicitude for Model Workers The activity of law popularization for the public on “12.4” National Constitution Day was carried out in AVIC Changhe Aircraft In October, volunteers from AVIC Guiyang Aircraft went to Ziyun Houchang Primary School to visit sponsor students In September, AVIC, who brought a project with “Colorful Aviation People” as the theme, appeared in the Third Session of China Charity Fair On January 15, Xu Fushun, Deputy Director of the State-owned Assets Supervision and Administration Commission, and Gao Jianshe, Deputy General Manager of AVIC expressed sympathy and solicitude for academician GUAN Qiao, the national model worker Vice-president unit Vice-director unit Director unit Vice-president unit Vice-president unit Vice-president unit Vice-director unit Director unit Interested Party and Communication Mechanism Communication of Interested Party Interested Party Expectation in the Group Modes of Communication and Response Party Central Committee, the Sate Council, Military Commission of the CPC Central Committee, national ministries Implement national policies as well as laws and regulations; in accordance with requirements of the national 12th Five-Year Plan, focus on developing aviation equipment manufacturing industry, and promote the development of general aviation to serve national economy and people’s livelihood Participate in the formulation of relevant laws and regulations as well as policies, offer advice and suggestions for the health industry development, and report statistical forms SASAC (State-owned Assets Supervision and Administration Commission of the State Council) Ensure maintenance and appreciation of value of state-owned assets, actively implement the “Go-out” strategy, blend in the global aviation industry chain, and comprehensively carry out management promotion activities to make main business stronger and better Strengthen intensity of EVA evaluation, perfect the institutional system and special work reports, and fully launch project of management improvement and innovation Local government at various levels Participate in investment and development of local economy, promote the local employment, pay taxes and operate in accordance with the law, and take responsibilities as a major enterprise Discuss cooperation issue with many local governments at home and abroad, integrate into regional economic circle to promote its development, manage the enterprise in accordance with the law, and have the courage to bear the responsibilities Employees Maintain the legitimate rights and interests of employees, formulate reasonable salary incentive mechanism, widen the career development channels for employees, build the health and safe working environment, and promote the localization of overseas employees Hold the congress of workers and employee on a regular basis, build trade union, promote collective negotiation of salary, construct platform for employees to grow up, provide health and safe working environment, actively implement the policy of localization of overseas employees Customers Carry out good faith management, provide quality products and services to establish a responsible brand image Guarantee quality of products, strictly implement the terms of the contract, keep close communication with customers, and do well in after-sale service Partners Strictly abide by the laws and regulations, promote business ethics, maintain long-term cooperation, and realize mutual benefit and win-win results Strictly perform the agreement, regularly hold high-level meetings, as well as share technical and management experience Suppliers Fair and transparent procurement, and stable relations of cooperation Contract negotiations, regular visit, bidding meetings, and advice collection Community Create good community living environment, and promote community prosperity Conduct real-time communication with the community, carry out the fellowship activities, and participate in community building NGO (nongovernmental organization) Support the development of social associations and organizations, strengthen the information disclosure, and participate in public welfare undertakings Actively participate in activities of social associations and organizations, initiatively offer advice and suggestions, strengthen information disclosure, and support public welfare undertakings Implementation and Management of Responsibility 14 15 Social Assessment Social Assessment of AVIC in 2014 Serial Number Date Content Awarding Body 1 January 2014 Three achievements of AVIC respectively won the first and second prizes of National Award for Science and Technology Progress The State Council 2 April 2014 Three achievements of AVIC South Aviation Industry Co., Ltd. won “2013 Quality Technology Excellence Award of China Association for Quality” 3 April 2014 4 Date Content Awarding Body 13 December 2014 AVIC brand was listed on the top of 2014 Chinese Mechanical Equipment Brands. General Administration of Quality Supervision, Inspection and Quarantine of the People’s Republic of China China Association for Quality 14 December 2014 AVIC won two prizes on Chinese Enterprise New Media Annual Meeting The Press Center of SASAC, The Central Enterprise Media Alliance, State-owned Assets Report Periodical Office AVIC won the first prize of Research Achievement of Organization Department of the CPC Central Committee Organization Department of the CPC Central Committee 15 December 2014 Lin Zuoming won Top 10 People in the News from Statedowned Enterprises The Enterprise Observer April 2014 30 persons from AVIC won the tile of National Technical Expert The Ministry of Human Resources and Social Security 16 March 2015 AVIC was elected as one of 2014 Top 10 Chinese Domestic Enterprises on Innovation Scientific American (Chinese version), a famous American science & technology magazine 5 April 2014 16 young people from AVIC won the title of “National Youth Post Expert” The Central Committee of the Communist Young League, and the Ministry of Human Resources and Social Security 6 June 2014 AVIC was elected as the member unit of “Sino-Italian Entrepreneurs’ Committee” Sino-Italian Entrepreneurs’ Committee 7 July 2014 AVIC won the title of “Five-star Enterprise to Fulfill Social Responsibility in Chinese Industry” China Federation of Industrial Economics and United Nations Industrial Development Organization 8 July 2014 AVIC was elected as 2014 National Best Enterprise for University Students Employment Consultation and Career Guidance Center for National Institution of Higher Education Student Information 9 July 2014 Four reports of AVIC won Good News of State-owned Enterprises awarded by SASAC The press center of State-owned Assets Supervision and Administration Commission of State Council 10 October 2014 AviChina Industry & Technology Company Limited won Corporate Governance Asia Excellence Award Corporate Governance Asia 11 November 2014 Two works of AVIC won the Excellence Award on the Second Session of “Five-One Project” for State-owned Enterprise’s Construction of Spiritual Civilization SASAC (State-owned Assets Supervision and Administration Commission) December 2014 AVIC won the title of “Enterprise with the Most Social Value in 2014” at the First Session of Takungpao.com “Super Contacts” Annual Meeting of Finance and Economics “Super Contacts” Annual Meeting of Finance and Economics on Takungpao.com 12 Serial Number AVIC won Bashu Charity Award in May In July, AVIC won 2014 Five-star Enterprise to Fulfill Social Responsibility in Chinese Industry Certificate On April 28, a certain national major special project of AVIC won the special recognition by All-China Federation of Trade Unions, and AVIC Undercarriage Company and AVIC Chengdu Civil Aircraft Company were awarded “National May 1st Labor Certificate”; 12 comrades, represented by GENG Ruguang et al. of AVIC won “National Labor Medal”. Implementation and Management of Responsibility 16 17 Identification of the Issues of Social Responsibility Key Performance of Responsibility In 2014, AVIC widely collected issues and materials of social responsibility from the member units, organized the annual summary of the activities on social responsibility, and interviewed one by one each business and management department, as well as some external experts Figure of Ranking Change among top 500 and stakeholders in respect of annual management work on social responsibility and annual report issues on social responsibility to fully consult and absorb the views and suggestions, as well as establish the core issue. No.178 No.212 No.250 Origin of the Issues Based on group strategy, management and control No.310 No.330 of current situation as well as concerns of each stakeholder, AVIC determined the annual report Implement the action of energy saving and consumption reduction Develop low carbon ecological industries issues on the basis of reference to domestic and requirements, hotspots of current affairs and public Idea of responsibility Governance mechanism Interested parties manufacturer’s social responsibility as a supplement. Collection of report issues Special topic on poverty reduction 2009 2010 2011 2012 2013 Development of non-aviation industry Safety production Quality management and assist of impoverished students In accordance with the latest release condition of Fortune Top 500, AVIC was selected for 6 years continuously by virtue of 386.38 billion yuan of operating income, ranked 178th, moving up 34th compared to that in the last year, and moving up 248th compared to that in the year of 2009 which was selected firstly. Economic performance index Safety and quality index Self-discipline, observance of law, innovation and progress AVIC attaches great importance to the management work on social responsibility, and shows its actions 2014 Main business of aero-manufacturing y Communication of the Issues Market responsibility respSocial ons ibilit home and abroad as well as report issues on aviation Responsibility management opinion, focus of investors, top 500 companies at Special topic on oversea operation tal menility iron Envsponsib re the same time, in accordance with national policy No.426 Establish environmental management system international standards on social responsibility, at Care and love the employee, pay back the society Deal with emergencies and disasters and provide relief, Income (108 Yuan) Profit (108 Yuan) 3863.8 poverty reduction and assist the impoverished students Covering-ratio of standard hitting units under AVIC quality management system (%) Invested money for safety production (108 Yuan) 89.1 on social responsibility through the measures, such 3495.4 as regular release of reports on social responsibility 143.6 143.3 and participation in related activities on social responsibility. In addition, AVIC integrates the management work on social responsibility into the 3.25 3.26 2012 2013 3.21 75.2 2014 2013 131.3 3008.9 news propaganda, enterprise culture and other works of the Group to improve the public’s awareness in 2012 2013 2014 2012 2013 2014 2014 AVIC and its social responsibility fulfillment situation through the external medias, such as Xinhua News Agency, People’s Daily, CCTV, China National Radio, Taxpaying and employee training etc. and We-medias, such as China Aviation News, Air Express, official websites, micro-blog, WeChat, etc. Amount of taxpaying (108 Yuan) 171.92 Total person-time of employee training (104 person-time) 111.43 109.27 Energy saving and environmental protection index The implementation of technical innovation projects for energy conservation and emissions reduction (number) 493 Invested money for technical innovation of energy conservation and emissions reduction (108 Yuan) Degree of reduction of COD’s emission (%) 11.9 5.6 145.88 126.32 2012 101.26 2013 2014 2012 131 2013 2014 2013 2014 2013 3 8 2014 2013 2014 18 19 AVIC in the Blue Sky (I) Eagles soar in the cloud, cruising for peace AVIC aims to “serve the country through aviation, reinforce our military force and people”. Riding on the historical mission in the aviation manufacturing industry of China, we provide advanced air weapons and equipment for national air defense in order to carry out our social responsibility in maintaining world peace and Eagles soar in the cloud, cruising for peace 19 Doves flutter in the sky, spreading wings for development 21 development. 1. Develop Aviation Equipment, Safeguard National Security From 1951 onwards, in line with the sacred mission of “serving the country through aviation”, as evidenced by the development from J-7 family series to J-10 Liang Jian, Xiao Long Teng Kong, Hu Ying Zhan Chi; to Xin Zhou Shou Fei, Fei Sha Shang Jian, AVIC has revolutionized from second generation jet to fourth generation jet, from land to ocean, and from small to large aircraft. AVIC is now capable of competing against strong aviation players in the same sector around the globe. “Kun Peng” is a new generation m ulti-p ur p o s e heav y m ilitar y transportation aircraft self-developed by China. Under complex weather conditions, the aircraft executes long-haul flight transportation for a variety of supplies and crew. In November 2014, “Kun Peng” was first displayed in the air show and performed flight demonstrations. In the 2014 Zhuhai Air Show, F-10 performed flight demonstrations. F-10 is a third-generation single-seat and single-engine jet fighter self-manufactured by AVIC, and has become one of China’s major new generation jet fighter. It is also the kind of aircraft mainly used by the PLAAF Air Demonstration Team. AVIC in the Blue Sky 20 21 2. Maintain and Create Our Environment, Pursue the Dream of Peace (II) Doves flutter in the sky, spreading wings for development From the early days of building the nation to new century, the aviation equipment provided by AVIC offers a reliable protection for national 1. Commit in Peacebuilding, Sustain Economic Development security in each era. Today, with strong emphasis on peace and development, China’s jet fighter may go on expedition, or conduct foreign aid and peacekeeping, or land patrol, or rescue search, with an intention of guarding peace and guarding the dream of China. Along with peacekeeping, AVIC adheres to its principle of “reinforcing our military force and people” by adapting to the development trend and the tendency to reform and opening up. Striving to develop civil aviation Z-8 escorting the Gulf of Aden products, it is directly involved in peacebuilding, sustaining and facilitating economic development. The civil aviation products manufactured by AVIC cover various sectors including business flying, firefighting The two Z-8 jets of certain type manufactured by AVIC Changhe and rescue, medical care, emergency rescue, police and law enforcement. 2014 is a fruitful year for AVIC with Aircraft performed the mission of escorting the Gulf of Aden in the respect to its research and manufacturing in civil aircraft projects, achieving “Four pioneer take off” (MA60 company of a particular team in marine force. In light of Chang artificial rain machine, Vision SF50 light business jet, Leadair AG300 independently-owned business jet, Fei’s safety maintenance against crew and under meticulous AC311A light helicopter), “One issued with production permit” (AC312 twin-engine multi-purpose helicopter), maintenance by a particular unit, the Z-8 jets of certain type “Three with qualified assessment” (AG600 large firefight/water rescue amphibious aircraft, Y-12F multi-purpose completed the escorting mission in a safe and successful way. transportation aircraft, AC312), “Four approved” (AC311A helicopter, AC3X2 light twin-engine civil helicopter, Since 26 December 2008 to late 2014, Z-8 and Z-9 manufactured AC313A heavy helicopter, JL-4A/1 propeller aircraft). by AVIC have performed nearly 20 missions of escorting the Gulf of Aden with outstanding achievements. Four pioneer take off 2014 is a fruitful year for AVIC with respect to its research and manufacturing in civil aircraft projects, achieving “Four pioneer take off” Z-9 safeguarding Syrian chemical weapon transportation The exercise of Z-9 safeguarding Syrian chemical weapon transportation. The peacekeeping force and convoy formation in Africa are equipped with Z-9 helicopters manufactured by China, which have taken part in several operations. In Asia, there are countries already reserving Z-9 as helicopters particularly for Head of state. Y-8 involving in search and rescue for the missing Malaysia Airlines flight On 22 March, a Y-8 aircraft took off from Malaysia Subang Air Base and flew to Andaman Sea northeast of the Indian Ocean to perform the mission of searching and rescuing the missing Malaysia Airlines flight. Business jet is used as a transportation aircraft in A G 6 0 0 a i rc r a f t i s a l a r g e f i re f i g h t / w a t e r In 2014, “Modern Ark” 60/600 aircraft received 88 administrative affairs and commercial activities, rescue amphibious aircraft designed and self- new orders, which has accumulated the delivery also known as administrative or commercial manufactured by China. This aircraft is equipped of the 100th aircraft. MA60-series aircraft is aircraft. The project of China’s Leadair AG300 with functions designated for various special currently operated by 28 operators for almost 260 independently-owned business jet was kicked tasks, such as emergency rescue, forest firefight air routes across 18 countries and regions, with off in June 2011, and has attempted first flight and marine patrol. In 2014, we received indicative cumulative flight hours and landing times nearly successfully on 5 July 2014. orders for two such aircrafts. doubled 300,000. AVIC in the Blue Sky 22 23 AVIC in the Blue Sky 24 25 2. Popularize Aviation Knowledge, Propel the Development in General Aviation Glamour at the Zhuhai Air Show Aviation science popularized in schools During the 63rd anniversary of the establishment of the New China’s aviation industry, all units comprised of AVIC extensively organized aviation science popularization activities in schools. On 16 April, the “Wu Daguan Volunteer Service Team” of AVIC Chengfa entered Xindu Sanhe Elementary School and organized the 2nd event on science knowledge popularized in schools. On 17 April, the Turbine School aviation science popularization promotional team of AVIC entered Second Elementary School Attached to Jiangyou Normal University and gave a lesson to educate students on aviation knowledge. On 6 June, the Wu Daguan Volunteer Service Team of AVIC and CAPMC travelled afar to Shanxi Luliang Fangshan County Kaifu Elementary School and organized the aviation science popularization activity in financing poor student and promoting the message of “love your country, love aviation, build your dream of serving the country through aviation”. complexes in batches under strategic planning throughout China achieved initial success. The progress of AVIClub is blossoming in many regions, with operations officially commenced in Zhuhai, Jingmen and Shijiazhuang. Shenzhen AVIC has initiated a mobile internet marketing model for exploration, while Tianjin, Xinjiang, Suzhou AVIC have completed the signing of cooperation agreements. Meanwhile, we have established Aviation Culture Communication Co., Ltd, set up an international flight performance team, and organized flight assembly and general aviation show. The “AVIC” brand is becoming a powerful engine in driving the development in China’s general aviation and an important symbol for strong aviation state. Science popularization volunteers interacted with students, popularized knowledge on aviation, distributed books, school supplies, etc. in their every destination, in order to stimulate students’ passion in learning science, applying science, loving science, as well as disseminate the ambition of serving the country through aviation and build the dream of serving the country through aviation. Zhong Hang Tong Hang developed general aviation business in Hulun Buir AV I C l u b e x p e r i e n c e d r a p i d d e v e l o p m e n t throughout China Since 2014, AVIClub of AVIC officially commenced operations. Following the signing of the AVIC project with China’s first general aviation town – Jingmen, we have entered into strategic cooperation agreements with cities like Wuhan, Shenyang, Nantong, Tianjin, Chongqing, Beijing, Zhuhai. The establishment of 50 AVIC aviation “Under the boundless sky, on vast plains, cows and sheep can be seen when the wind blows and grass lowers…try to fly from Hailar to Manzhouli on a sunny day, overlooking the grasslands of Inner Mongolian for only RMB300, discounted to RMB90 when necessary.” This is not an exaggerated advertisement but a physical activity of AVIC in the general aviation sector. AVIC Tongfei North China Company together with Inner Mongolia Hulun Buir League have established China’s first general aviation short-haul transportation enterprise – China Aviation Industry General Aircraft (Hulun Buir) Co., Ltd, opening and aligning the air routes across Hailar to Root River, Manzhouli, Jiagedaqi, etc. to the extent of carrying out short-haul transportation business for general aviation. As planned, there is gradual expansion to establish about 15 airport networks near the end of “Twelfth Five”, in order to allow general aviation to cover all counties within Hulun Buir, so as to create a one-hour flight circle of “travelling across counties in time”. In November 2014, on the Tenth Zhuhai Air Show, AVIC showcased many of its important jets, such as Y-20 large transportation aircraft, AC3X2 helicopters, “Modern Ark” 700 new generation turboprop aircraft, F-31, etc. An aggregate of over 150 exhibits were displayed in the show, of which over 30 were real aircrafts, strongest lineup ever. Closely linked to its theme of “Dream of China to be lifted by passion in aviation”, the Air Show unveiled the overall strength, brand image and social responsibility of AVIC. Underlying the “China Aviation Museum” is the creativeness of “The Cube”. AVIC Aviation Museum is categorized into eight exhibition areas including military aviation, civil aviation and general aviation aircraft, whereas the display effect can be enhanced by large-scale systems, seriation, and integration, which in turn is well-received by a lot of audience at the exhibition. Through the creation of themed exhibition areas, independent and silent exhibition area on the ground and organizing flight performance, level of attractiveness, interaction, science popularization and entertainment is therefore enhanced. During the Air Show, AVIC also organized special events which includes the First AVIC light sport aircraft design contest, the Sixth “Imagine Cup” national future aircraft design contest award ceremony and the Third “AVIC Cup” international drone innovation contest launch ceremony. Since organizing for the first time in 1996, previous Zhuhai Air Shows witnessed China’s aviation industry having revolutionized across five areas, from second generation jet to fourth generation jet, from small and medium aircraft to large aircraft, from mechanization to information technology, from manned to unmanned aerial vehicles, from international subcontracting production to R&D cooperation, evidencing a rapid leap in AVIC’s strength and its massive change from local business to multinational corporations. 26 27 AVIC around Us AVIC just leaves an impression of aircraft maker on people outside. When AVIC is mentioned, everybody will call to mind “J-10”, “Kunpeng”, “Dayun”, “Z-10”, etc. Flying in the blue sky, these aircrafts seems very far away from us. In fact, AVIC is quite close to us, being all around us. On the distribution, AVIC has become ubiquitous in China. The member units and identifications of AVIC are People know you well around the world as a neighborhood 28 distributed almost all provinces, municipalities directly under the Central Government and autonomous regions It lies in the life instead up in the clouds When you travel in the mountains and see drones executing the tasks of farmland and woodland spraying, 32 and AVIC people are found in Asia, Africa, America and Europe. power line inspection as well as aerial survey and aerial photograph, can you think of that they might be new civil products of AVIC? When you frown in the face of urban haze, do you know that UAV platform for dispersal of haze has been successfully developed by AVIC? When you are attracted by the big screens on urban squares, do you know these screens are mostly from AVIC Shenzhen Tianma Microelectronics Company? When you go shopping with your credit-card, can you image that the chip in it is a product of AVIC Shennan Circuit Limited Company? When you visit the Forbidden City and Great Hall of the People with your relatives and friends, you may not think of that AVIC Dabei Property Management Ltd. is at your service anytime and anywhere. When you and your family go shopping and enjoy a diversion in Rainbow Department Store, you may not know that the high quality services provided by Rainbow Department Store is the result of AVIC’s high quality. When you are wearing Fiyta watch, do you know this brand also belongs to AVIC? When you invest money into the stock market, you may accidentally become the shareholder of any of 29 listed companies under the governance of AVIC. It is predicted that El Nino phenomenon will come in 2015. When you worry about the crops to be affected, do you know that Groupama AVIC Property Insurance’s agricultural insurance products can help you with your problems? Besides, there are hospitals of AVIC, AVIC Automobile Industry, AVIC Trade, Civil Aviation University Of China, AVIClub, iyouke.com, itronk.com and others spreading all over the country. That’s it. AVIC is all around us, and we are together. AVIC around Us 28 29 (I) People know you well around the world as a neighborhood 1. Logo Recommendation of AVIC The emblem of AVIC is composed of the Earth and a morphing aircraft. The aircraft points to upper right, symbolizing the aspirations of AVIC, “a prosperous country with a powerful army and rich people”. The blue ring shows that AVIC has a profound basis of high aviation technology, and also symbolizes the close unity of member units surrounding AVIC, generating a strong cohesion. “AVIC” under the aircraft represents the Group itself. It is shown that through the composition that AVIC, under the leadership and concern of the Party Central Committee, the State Council, and Central Military Commission, it implements the strategy of “two integration, three innovation, five characteristics and one trillion”; carries forward the Group aim of “serving the country by developing aviation, making the military force efficient and people rich” and Group concept of “commitment, integrity, innovation, surpassing”, as well as makes unremitting efforts in the establishment of new, large and strong aviation. 2. Distribution Map of Member Units AVIC around Us 30 31 3. List of Listed Companies and Index Diagram of AVIC Serial No. Listed company Abbreviation Code Listing Serial location No. Listed company 80% Abbreviation Code Listing location AVIC Electromechanical 002013.SZ Shenzhen 1 Hafei Aviation Industry Co., Ltd. HAI 600038.SH Shanghai 16 AVIC Electro-mechanical System Co., Ltd. 2 Jiangxi Hongdu Aviation Industry Co., Ltd Hongdu Aviation 600316.SH Shanghai 17 Sichuang Chengfei Jicheng Science & Technology Chengfei Jicheng Innovation Co., Ltd. 002190.SZ Shenzhen 3 China AVIC Electronics Co., Ltd AVIC Electronics 600372.SH Shanghai 18 AVIC Photo-electricity Science & Technology Innovation Co., Ltd. AVIC Photoelectricity 002179.SZ Shenzhen 4 Sishuan Chengfa Aero Science & Technology Co., Ltd. Chengfa Science & Technology 600391.SH Shanghai 19 AVIC Sanxin Co., Ltd. AVIC Sanxin 002163.SZ Shenzhen 5 Guizhou Guihang Automotive GACO Components Co., Ltd. 600523.SH Shanghai 20 Rainbow Department Store Rainbow 002419.SZ Co., Ltd. Department Store Shenzhen 6 AVIC Capital Holdings Limited AVIC Capital 600705.SH Shanghai 21 AVIC Electrical Measuring Instrument Co., Ltd. 300114.SZ Shenzhen 7 AVIC Hebao Auto Co., Ltd AVIC Hebao 600760.SH Shanghai 22 AVIC International Holdings AVIC International Limited Holdings 0161.HK Hong Kong 8 AVIC Heavy Machinery Co., Ltd. AVIC Heavy Machinery 600765.SH Shanghai 23 AVIC International Holdings AVIC International (HK) Limited 0232.HK Hong Kong 9 AVIC Power Co., Ltd. AVIC Power 600893.SH Shanghai 24 Happiness Holdings (HK) Ltd. Happiness Holdings 0260.HK Hong Kong 10 Baosheng Science & Technology Innovation Co., Ltd. BSTI 25 AviChina Industry & Technology Company Limited AviChina 2357.HK 11 AVIC Real Estate Co., Ltd. AVIC Real Estate 000043.SZ Shenzhen 28 Nexteer Automotive System Group Limited Nexteer 1316.HK Hong Kong 12 Shenzhen Fiyta (Group) Co., Ltd. Fiyta A 000026.SZ Shenzhen 26 AVIC International Ship Holdings Limited AVIC Ship O2l.Sl Singapore 13 Shenzhen Tianma Microelectronics Co., Ltd. Shenzhen Tianma A 000050.SZ Shenzhen 27 KHD Humbo Idt Wedag International AG KWG: GR Frankfurt AVIC Power Control Co., Ltd. AVIC Power Control 000738.SZ Shenzhen 29 FACC AG AT0000FACC2 Vienna AVIC Aircraft Co., Ltd. AVIC Aircraft 000768.SZ Shenzhen 14 15 600973.SH Shanghai ZEMIC AVIC (898001) Shanghai Composite Index (000001) 70% 60% 50% 40% 30% 20% 10% 0% -10% Jan Feb Mar Apr May June -20% Hong Kong 2014, AVIC index rose up to more than 70%, exceeding the market. Indicator Unit 2012 2013 2014 Asset and capital securitization rates % 52% 54% 59% The market value of its listed companies RMB One hundred Million 1,796.6 2,723.8 4,641.7 The number of its listed companies Company 26 28 29 Cumulative dividends of listed companies RMB One hundred Million 18.13 15.69 25.28 Jul Aug Sep Oct Nov Dec AVIC around Us 32 33 (II) It lies in the life instead up in the clouds AVIC dose not fly in the clouds, but more around us. In terms of geographical distribution, it has more than 200 affiliated organizations distributed in more than 30 provinces, autonomous regions and cities of China as well as more than 180 foreign countries and territories. In terms of industries, AVIC implements the “civil-military integration” strategy to vigorously development civilian industries and extensively integrates itself among the people’s daily lives by In the morning, I was When I arrived the At noon, we went In the afternoon, my After a day’s work, I The AVIC smart electric means of the advantages in aviation high-techs and aroused by time service office, employees t o A V I C H o t e l ’s email box received chose the shuffle bus for meter mounted to aerospace manufacturing system. of the FIYTA watch. o f AV I C H u i l i w e r e underground staff AVIC A i r ’s fear of traffic jams. The the door reminded After opening the designing photovoltaic canteen for lunch, promotional information shuttle bus is a Silver me of running out new refrigerator and (PV) systems using seeing that several for celebrating the 900 independently- electricity after I arrived a hurried breakfast, rooftop resources. s t o c k s o f AV I C h a d fifth anniversary of d e v e l o p e d b y AV I C home, so I purchased I drove my newly They said that, the first limited up. According formal operation, and Xi’an Silver Bus additional quantity of brought new-energy 325 KW distributed to colleagues of AVIC which recommended affiliated to Volvo Joint electricity online with High-end consumer car to my office. There PV power generation Securities, that was me to take part in the Ve n t u re . I t f e l t v e r y my electricity-purchase goods and retailing was a traffic jam when demonstration project because that day the travelling route – “a tour good to sit in the bus. card. Opened the 1. AVIC is in your life AVIC-involved civilian industrial fields Motorcycle Automobile Mechanical equipment Energy equipment Joy I p a s s e d AV I C 3 6 1 o f AV I C H e b e i A n j i subsidiary, FACC AG, of famous mountains On my way, I brought home care oxygen General aviation Hospital, so I simply Hongye Machinery Co., of AVIC was officially and great waters with s o m e f re s h f o o d a t g ener ato r p ro d uced services turned to AVIC Property Ltd. in Botou City, Hebei listed overseas in aircraft manufacturing” “Rainbow Department b y AV I C J i a n g h a n g Management’s Urban P ro v i n c e , h a d b e e n Austria and raised funds – p ro v i d e d b y AV I C Store Online”. Rainbow Medical Equipment to Logistics G re e n C o n v e n i e n c e connected to the grid of RMB1.81 Billion International Travel. Department Store is the ensure indoor air fresh. Car Wash Self-Service since March 13, 2014, (approximately EUR 213 first ISO22000 Food The doorbell rang, Station, not far away, which was the first Million). Safety Management Rainbow Department for a car wash. demonstration project System certified Store delivered my Air freight Refrigeration Medicine and connected to the grid enterprise in China’s orders, as well as in equipment healthcare of AVIC; and on March retail sector. t h e re f i n e d o l i v e o i l Electronic information products Others On March 25, FIYTA “Three-Dimensional Reading” Modern stood out from 4,815 pieces provided by 1,816 manufacturers from 53 countries and won the 2014 Red Dot Product Design Award 19, Spriggs Farm, a p r o d u c e d b y AV I C terrestrial PV power (Tieling) Pharmaceutical. station project in UK After dinner, I checked of AVIC International, AVIC Wechat and China June 7, Rainbow’s first mall-centered community-type was completely and Aviation News with department store was opened successfully connected my mobile phone, set to the grid. the FIYTA alarm clock, and went to sleep peacefully. AVIC around Us 34 35 2. AVIC Serves People’s Livelihood AVIC implements and practices the strategy of “integration into the circle of regional economic development”, is committed to economic development in non-aviation industries and local regions, and uses its advantages in aviation manufacturing system, to extensively serve people’s livelihood. 23,739 flights Joy Air has accumulated 23,739 flights, safe flight time of 43,233.77 hours, and fleet size up to 8 aircrafts (2) Groupama AVIC Insurance’s Rapid Response to “11.22” Kangding Earthquake (4) Develop Creative Industry and Serve Transformation of Economy In 2014, AVIC proposed to realize transformation and In November 22, a 6.3 earthquake occurred in upgrading into manufacturing industry servicizing (1) Joy Air’s 5th anniversary of official operation, number of passengers reaches one million Kangding County, Ganzi Tibetan Autonomous with cultural creative industry as a leader, develop Prefecture, Sichuan Province. A total of 3,261 people general aviation creative cultural industry with in Ganzi Prefecture are policyholders of personal “Aifeike” as brand, develop leisure tourism industry At noon on January 23, 2014, Flight JR1548 from TaiYuan to Xi’an landed at Xi’an Xianyang International Airport – Joy Air saw the one millionth passenger, which is also the first time that Chinamade civil aircrafts have carried 1 million passengers. accident insurance in Groupama AVIC Property with “Aiyouke” as brand, develop endowment health Insurance Co., Ltd. (referred to as “Groupama industry with “Aixinke” as brand, develop Internet AVIC”), there is a total of 280 thousand mu of business incubation platform with “Aichuangke” farmlands and 87 million mu of forests insuring as brand, and develop high-end environmental From operation commencement on August 15, 2009, Joy Air has gone through five years with 23,739 accumulated flights, 43,233.77 hours of safe flight time, and fleet size up to 8 aircrafts. The network including more than 20 routes covers the five regions of Northwestern China, Northern China, Central China, Eastern China and Southern China, including 13 provinces. Joy Air always keeps in mind the mission of “to develop China’s regional air transport market and promote China’s domestic civil aircraft manufacturing industry”, firmly assumes the role as a leader in market-based operation of China-made civil aircrafts. Constant collection of market information with feedback, listening to passengers’ comments, and improvement of aircraft performance and service levels jointly with AVIC, Joy Air and its “Xin Zhou 60 win passengers’ love and become popular in the market. Every Joy Air person and AVIC person knows by him/herself whether the hardness and challenges from zero to one million passengers are cold or warm. agriculture and forestry insurance. Within 30 minutes intelligent commercial bus with “Aiweike” as brand, since occurrence of the earthquake, Groupama to realize effective overflow of brand, technology and AVIC immediately initiated an emergency plan, industry of high-tech aviation industries into modern prepared RMB20 million as excess reserve, opened service industry, cultivate new economic growth point green channel of claims, and contacted with the and serve transformation and upgrading of domestic clients forwardly for fast payments. Meanwhile, the economy. The number of one million passengers is a milestone. Air Joy, holding the China Dream of “selfimprovement of China’s civil aircrafts”, is ready to meet the new future with confidence. One year ago, 34-weeks pregnant LV Yuanfang Company donated RMB1 million used for earthquake relief work. (3) A Special Return Visit “ALS” (a patient with spinal muscular atrophy) made a special visit to Beijing for delivery from Gansu but encountered a dilemma that no hospital would admit her. Under the almost desperate and no-way-out situation of poverty and disease, General Hospital of China Aviation admitted her for free. After careful treatment, LV Yuanfang gave birth to her son and was discharged to return home safely. A year later, a team of experts including President GAO Guolan went to the home of Yuanfang in Gansu for a special return visit of the mother and son with birthday gifts and blessings to her family. Inspections and evaluations showed Yuanfang’s recovery and her son Qihang’s development were in good condition. For Aiweike minbus, it obtains 35 items of technological innovation and 6 items of design patent as well as the whole intellectual property rights; through fast charging of one hour, it can drive 300km continuously 36 37 AVIC with Safety First (I) AVIC in pursuit of safety AVIC attaches great importance to production safety, earnestly implements safety laws and regulations, comprehensively promotes safety standardization combined with actual situations of AVIC, improves safety AVIC in pursuit of safety 37 AVIC manufacture focusing on quality 40 standards, normalizes operating procedures to form a standardized safety product-based platform, establish a hidden danger investigation and management system with the trinity of safety production standardization construction, hidden danger investigation and management activities of a mass character, and special hidden danger investigation and management in high-risk places, systematically normalize efforts in terms of production safety and occupational health, continue to implement safety training and education, and promotes stable progress in production safety. There is neither large, major or serious production safety accidents, nor new occupational diseases occurred throughout the year. Safety index Unit 2014 Rectification rate of hidden dangers % 95.74 Rectification rate of major accidents % 100 Developed master emergency rescue plans Plan 399 Developed division emergency rescue plans Plan 2,478 Investment in occupational safety RMB Ten Thousand 5,029 Organizations certified by occupational health and safety management system Organization 52 Production Safety Management Framework 1. Advance Production Safety Standardization AVIC Production Safety Management System AVIC safety management departments actively implement State Administration of Work Safety and Information Network System Emergency Management System Training and Education System Institution and Standard System Supervision and Management System Appraisal and Incentive System Responsibility System other departments’ requirements on promotion of the standardization of production safety, and established a whole set of production safety management system combined with AVIC’s own characteristics in respect of safety, to improve the management of production safety at all levels, in all aspects and during the entire procedures. It strives to make every possible Corporation Basic Management Platform Focusing on Improvement of 6S Standards efforts to achieve enterprise safety management standardization, onsite production standardization and operation procedure standardization. AVIC with Safety First 38 39 3. Continue to Strengthen Basic Safety Management Safety Production Management Organization Chart In 2014, organizations of the Corporation, by combination of their own characteristics, continued to strengthen AVIC Production Safety Commission basic management, prepared emergency plans, organized safety drills and emergency rescue drills, promoted 6S management and safety appraisal and management and increased efforts with regard to personal protection RMB AVIC Production Safety Office AVIC Regional Production AVIC Technical Safety Coordination Team Support Department Production Safety Management Departments of Organizations Directly Subordinated to AVIC 321.25 Million AVIC Production Safety Experts Team The Corporation’s investment amount in terms of safety in 2014 is RMB321.25 Million, essentially equivalent compared with the previous year Production Safety Management Departments of Organizations Affiliated to AVIC Safety and Emergency Reuse Management Organization Chart AVIC Production Safety Commission AVIC Emergency Rescue Office 2. Promote Hidden Danger Investigation and Management of a Mass Character In 2014, AVIC organized “Safety Month” activities, carried out AVIC hidden danger investigation and management activities of a mass character by means of “production safety of one hour” on the basis of integrating characteristics of aviation industry and in accordance with requirements of the National Defense Science and Industry Bureau. Significant results are achieved and the rectification rate of major accidents reached 100%. Emergency Rescue Management Departments of Organizations Directly Subordinated to AVIC and technological protection to improve the level of production safety. The Corporation’s investment amount in terms of safety in 2014 is RMB321.25 Million, essentially equivalent compared with the previous year. Significantly effective safety month activities of AVIC Chengdu Aircraft From June to July of 2014, AVIC Chengdu Aircraft actively carried out “safety and environmental In 2014, China Flying Dragon revised Production protection moth” activity with themes of Safety Responsibility system, timely updated “strengthening the awareness of red line and Aviation Safety Management Manual, Operation promoting safety and development” and “declaring Specifications, Working Procedures Manual” and war against pollution”. During the activity, a total of other manual, developed China Flying Dragon 138 sets of propaganda and education wall charts Handling Procedures for Unsafe Events of Civilian and 530 books for learning were distributed; more Aircrafts, widely promoted the new China Flying than 300 workers, more than 400 shift leaders Dragon General Aviation Regulations on Flight and more than 310 pilots received safety training; Operations and the brand new Safety Supervision compliance inspections were carried out in 16 Worksheet, built a new cloud drive for safety professional plants and 5 production departments; information, and introduced a safety monitoring 500 employees were organized to participate and mechanism with tripartite participation of the Civil performed well in knowledge contests. Aviation, Flying Dragon and clients; Flying Dragon’s safety management system was deepened in 530 books all aspects. No flight accident, ground accident, accident proneness or serious quality problem occurred throughout the year. A total of 138 sets of propaganda and education wall charts and 530 books for learning were distributed AVIC Chengdu Aircraft nearly ten thousand people fighting in the forefront of production safety during the hot holiday in August Emergency Rescue Management Departments of Organizations Affiliated to AVIC Hidden danger troubleshooting on site China Flying Dragon deepens the construction of safety management system AVIC with Safety First 40 41 4. Safeguard Occupational Health and Safety 1. Under the Headquarters’ Overall Planning and Guidance AVIC issued Aviation Industry Corporation of China Management Measures for Occupational Health Monitoring In 2014, quality assurance department of Corporation headquarters prepared and issued the Aviation Product (Z Zi [2014] No. 135) and Aviation Industry Corporation of China Management Measures of Occupational Health Quality Status Quo (2009-2014), promulgated the AVIC Outline for Quality Development (AVICQ2020) (2014 Experts (Z Zi [2014] No. 103), which made clear the occupational health rights of workers according to the law; Edition), in which, they analyzed the quality development status and determined the quality development created the “AVIC Occupational Health Information System to monitor critical data with regard to occupational planning in the next five years. A total of seven organizations directly subordinated to the Corporation and 69 health at regular intervals; by publishing compilations of occupational health laws and regulations, establishment organizations affiliated to the Corporation started the preparation of quality development plans in succession. of industry experts database, organizing professional training, to improve organizations’ capacities to manage occupational health and the quality of professional teams. Part of direct subordinate organizations and affiliated organizations also developed their own rules and regulations, which further normalized the occupational health monitoring. In 2014, the occupational health awareness week was carried out. At the same time, organizations at all levels searched carefully for problems existed in the management of occupational health and carried out problem rectification; organized workers exposed to occupational hazards and heads of organizations to participate a nationwide occupational disease knowledge contest. With a series of activities, employees’ awareness of prevention and treatment of occupational diseases were improved and organizations’ management levels of occupational health are enhanced, great importance was attached to occupational health management by organizations at all levels, and relevant requirements of laws and regulations on occupational disease prevention were further implemented. 7 organizations In 2014, AVIC focused on user needs and successfully hosted the Third Aviation Quality Forum with the A total of seven organizations directly subordinated to the Corporation and 69 organizations affiliated to the Corporation started the preparation of quality development plans in succession development dynamics of advanced quality assurance concepts and methods, and enhanced exchanges, theme of “to enhance quality capacities and promote transformation and upgrading” and exchanges and communications on 16 selected topics. It promoted aviation enterprises to understand and get hold of collaboration and resource sharing between enterprises in the field of quality assurance. In 2014, AVIC actively promoted AVIC-QMS compliance evaluation. By the end of the year, there had been 98 compliance organizations and 179 compliance processes in AVIC. Due to conduction of compliance evaluation on quality management system, all organizations were promoted to sort their system documents and related processes, further clarify quality responsibilities and improve their levels of quality assurance effectively. In 2014, AVIC continued to promote centralized procurement management, encouraged organizations to establish market-oriented and procurement-centralized operating companies to effectively improve efficiency According to Occupational Disease Prevention Law and work practice, each organization set full-time or and quality of supply chain and reduce procurement costs. part-time position for management of occupational health, established or improved the occupational health management systems and procedures; systematically normalized occupational health records, timely sorted out occupational health records and critical cases; effectively implemented occupational hazards monitoring and occupational health examination. AVIC had no new cases of occupational disease in 2014. 2. Affiliated Organizations Attach Importance In 2014, each affiliated organizations, on their actual conditions, carried out quality assurance activities to safeguard quality of products and services. AVIC was awarded “2014 Quality Technology Award of China (II) AVIC manufacture focusing on quality Association for Quality, and quality assurance teams of 15 affiliated organizations were awarded the title of “2013-2014 National Outstanding Quality assurance T. AVIC adheres to the concept of “Quality First, Quality is Priority, Quality as the Root”, the purpose of “Serving the Country by Aviation”, the basic idea of “Professionalism and Integrity”, the means of strengthening training quality to promote quality assurance comprehensively. It strengthens organizational leadership and implemented the responsibility system of quality work; strengthens quality assurance, improves the attainment of all people in terms of quality, and created a fresh phase of quality work. High achievements are made in respect of Serial Name of Organization Name of Team 1 AVIC Shenyang Aircraft Aircraft Pipes Manufacturing QC Team 2 AVIC Taifang Vibrating Cylinder QC Team 3 AVIC Hangyu Progress Everyday QC Team No. steady progress in construction of quality culture, promoting certified and evaluated quality assurance systems, carrying out special rectification to eliminate hidden dangers, and improving quality assurance. AVIC with Safety First Serial 42 43 ( 2 ) AV I C 3 2 0 1 H o s p i t a l w o n t h e honorary title of “Medical and Heath Institution with the Masses’ Satisfaction” in Shaanxi Province (3) AVIC PingYuan got the UTAS Quality Clinic Certificate Name of Organization Name of Team 4 AVIC Huafeng Plating QC Team 5 AVIC Xi’an Aero-Engine “Knowledge and Action” QC Team 6 AVIC Xinxiang Aviation Continuous Improvement of Core Workshop QC Team 7 AVIC Changhe Aircraft Quality Composite Parts Engineering QC Team In 2014, AVIC 3201 Hospital won the honorary title of “Medical and Heath Institution with the Masses’ Satisfaction” in Shaanxi Province. Among all the commended 25 medical institutions, 3201 Hospital is the unique enterprise hospital in the whole province. 8 AVIC Chengdu Institute GVT QC Team (4) AVIC Logistics boosts the supply chain quality management 9 AVIC Shenyang Institute Flight Control System Software QC Team 10 AVIC Nanjing Electric and Hydraulic Flying QC Team 11 AVIC Qingyun Bright QC Team “One generation of materials brings up one generation of airplanes.” As the technical field gathering the most high technologies, dependence of the aviation industry on quality of materials is the most direct and sensitive. In order to guarantee quality of materials, AVIC has gradually dispatched and established 62 plant-residential representative offices involving metallurgical, rubber and chemical industries, etc. to forge the most cuttingedge purchase army. 12 AVIC Hongling Gas Turbine Plant QC Team 13 AVIC Qing’an “Leap” QC Team 14 AVIC Institute of Strength Endless Progress QC team 15 AVIC Institute of Guizhou Aviation Aircraft Shape Design QC team 15 AVIC Institute of Guizhou Aviation Aircraft Shape Design QC team No. 3. Distinguished Quality Management Performance In April 2014, AVIC Xinhang PingYuan Company won the Quality Clinic Certificate awarded by the United Technologies Aviation System (UTAS), which is also the second enterprise in China winning this Certificate. At the end of 2013, AVIC Logistics established based on all the plant-residential representative offices was designated as the professional platform for the aviation centralized purchase by AVIC. In 2014, on the one hand, AVIC Logistics was devoted to demands integration and made great efforts to promote the aviation centralize purchase; on the other hand, it was rooted on mutual benefits and win-win to cultivate the strategic suppliers clusters. Meanwhile, it relied on the scientific management to fully realize the purchase professionalization. AVIC Logistics has effectively and greatly lowered the purchase costs, guarantee safety of the supply chains, expand the purchase channels and innovate the purchase mode and flow, which fully improve the supply chain quality management of AVIC. (1) Xinhang achieved the title of “One Hundred Excellent Automobile Spare Parts Suppliers in China” for six years successively In December, 2014, the appraisal result of the Eleventh One Hundred Excellent Automobile Spare Parts Suppliers in China held by the China Automotive News was disclosed and 3 automobile spare parts enterprises affiliated to the AVIC Xinhang won laurels again: the AVIC Xinhang PingYuan Filter Co., Ltd. was awarded “excellent engine fittings and blowdown system supplier”; the AVIC Xinhang Yubei Steering System Limited Liability Company was awarded “excellent steering system supplier” and the AVIC Xinhang Yuxin Automotive Air Conditioning Co., Ltd. was awarded “excellent automotive electronics and electrical appliances supplier”. So far, Xinhang has achieved the title of “One Hundred Excellent Automobile Spare Parts Suppliers in China” for six years successively and won high praise within the industry and wide concern, which fully manifests the brand influence of the Xinhang automobile spare parts. Xinhang has integrated the aviation quality into the automobile spare parts industry and employ the advanced technologies and the innovative management in the aviation industry into research and development, production, sale and all other links of the automobile spare parts for years. At present, three automobile spare parts products, including the Yubei power steering gear, the Yuxin automotive air conditioning and the PingYuan filter rank first three positions in the industry among the national brands, whose rate of increase in production and sale each year always exceeds that of the domestic automobile industry. The representative of AVIC in the supplier’s plant conducts the quality inspection at the site 44 45 Self-disciplined and Responsible AVIC Cultivate and self-discipline, innovation and aggressive Flourish enterprise, prosper country, and benefit the whole world (I) Law-abiding and self-disciplined, innovative and progressive 1. Enterprise Administration Pursuant to Laws and Working Style Construction In 2014, AVCI conducted the legal learning to create the atmosphere of enterprise administration pursuant to laws. It deeply propelled the party’s mass line education and implementation campaign, put great efforts on issues rectification and reform and established procedures and systems to conciliate and improve; these measures made issues related to “formalism, bureaucratism, hedonism and extravagance” controlled effectively. AVCI strives to fight corruption and uphold integrity, conducts full inspections and special inspection, strictly investigates and treats disciplinary violations and focuses on establishment of the incorruptible culture. Law-abiding and self-disciplined, innovative and progressive 45 Care for employee, pay back the society 48 Visit AVIC on Constitution Day in China On November 1, 2014, the Standing Committee of National People’s Congress determined to set December 4 in each year as the National Constitution Day. For this, all sectors of AVIC conducted all kinds of activities, established the constitution power and enhanced the legal sense of all employees. AVIC Missile Institute focused on the topic of “carry forward constitution spirits and establish rule of law in China”, highlighted the constitution and the Fourth Plenary Session of the 18th Central Committee of the Communist Party of China, conducted learning and propaganda, explained constitution knowledge, issued the Constitution and learning data and carried out the constitution knowledge competition. AVIC Turbine Institute held the special topic lecture of Constitution and China Constitution; all the affiliated sectors learnt the constitution through photo exhibitions, special topic films and forums, opened up the propaganda column and Weibo taking the constitution as the topic, and carried out knowledge competition. AVIC Calculation Institute invited the professional layers to fully introduce the legal risk prevention knowledge, cyclically play the propaganda pictures to enhance the sense of cadres and employees related to knowing laws, obeying laws and employing laws, and conducted the constitution knowledge competition to make the constitution concept get more and more popularity. AVIC Wanli established the propagation and implementation team, and took advantage of the rule of law propagation panel, LED panel and scrolls for the topic propagation, in combination of the relevant requirements of “Sixth 5” Law Popularization and “New three-year” legal work. AVIC Lanxiang conducted the questioning activity with awards in the employee activity center. During the activity, responses of employees were enthusiastic, creating a good legal atmosphere of “all learn laws and laws protect all”. Self-disciplined and Responsible AVIC 46 47 AVIC Capital carefully propels education and implementation campaign (2) Development of AVIC Operation System 4,680 applications for invention patents, with an increased of 37.6% compared to that in the last year. And the only state-level “Integration of Informatization The third education and implementation campaign of all members affiliated to AVIC Capital started from March 1, 2014, which is basically ended in September, 2014. There were 8 members units, 33 grass-roots party AVIC developed and implemented AVIC Operation and Industrialization” in-depth integration and organizations, 665 party members and 37 members of the party leading group participating in this campaign. Since System (hereinafter referred to as AOS) throughout innovation experience center established by MIIT commencement of this campaign, the three public consumptions of all the participants had great decreased by the Corporation in 2004. By means of establishment becomes a national demonstration base. reducing 42 meetings and 112 documents and abolishing, changing and establishing 424 rules and regulations. of a process-based operation framework, AOS integrates and consolidates various elements of 2. Standardized Management, Self-examination and Self-discipline management, clarifies operation processes and their China is the first to develop the “Graphene Alloy” corresponding systems, standards, performance In 2014, AVIC continued to standardize the internal management, successfully launched the model of leadership, indicators, tools and methods, etc. to fully integrate Graphene, discovered in 2004 officially, is the fully implemented the operation administration system (AOS) and fully conducted the unified IT framework. In management activities and all types of operation thinnest visible nanoscale material known to people; addition, implementation of “cost decrease and efficiency increase” achieved new effects; the auditing work was activities into a unified document system that can is the most solid materials, and it is more than 100 enhanced and the risk prevention was promoted. effectively adapt to needs of different operations, times stronger than steel; is the fastest electronic units and levels, covering all product life cycles conductivity material, which is 140 times faster than and the whole value chain. This is a big leap in silicon materials; it is the lightest solid material, with management history of AVIC. 97.7% of light transmittance ...... it will “subvert the (1) AVIC Leadership Model Release After repeated discussion and modification, the AVIC leadership model is finally released, which provides guidance future of the world’s electronics industry”. 3. Self-Independent Innovation & Aggressiveness for AVIC leaders at all levels to enhance leadership. AVIC-Do AVIC-Do AVIC Leadership Model Conviction “Cultivating our moral character, thriving the enterprise, dedicating ourselves to the serve of our Essential Factors: Conviction, Vision, Achievement, Inspiration, Do on the technological development in 2014 by materials was invented, filling the gap in the world’s materials science. It also allows China to become the there are 4 national science and technology awards, leader in this field. The term “Graphene Alloy” went “Always be truth in word and resolute in deed.” “From good to excellent” 86 national defense science and technology awards; down the word’s technological development history Do “We can go as far as the mind let us.” “As heaven maintains vigor through movements, man should constantly strive for self-perfection.” With wisdom and discretion, Mapping out a strategy, grasp the opportunity, and be good at: Having an insight into the clue of extremely critical situation; Drawing a blueprint of scientific development; Choosing strategies that conform to the time and rule In the competitive market and numerous challenges, we lead the future and direction of the enterprise with a penetrating vision. Being responsible and motivated, With diligence to dedicate oneself to work, aggressive to be stronger, adhere to: Driving the vigorous consciousness; Honing the dauntless strength; Emulating the innovative mode; Taking the initiative in comfort and difficult circumstances with endless hard work and color the magnificent life of responsibility with passion. Ability and action, Taking the lead in setting an example, engage in the career wholeheartedly, and be able to: Adhering to the standard of honesty; Carrying forward the style of earnest work; Building efficient execution teams; In the deepening of reform and the implementation of the strategy, we ought to conquer the difficulties and work in a down-to-earth manner, speed up the pace of implementation of the blueprint with heroic efforts. Producing result, creating value, Committed to growth, accomplish goals, and strive for: Getting results of scientific development; Achieving a win-win situation for all parties concerned; Fulfilling the realization of ambition in the top of the class; In the persevering and continuous process, begin well and end well, and make persistent efforts to play an everlasting discourse with the brilliant achievements. Firm Ideals: to staunchly insist on the lofty ideal of communism and beliefs of socialism with Chinese characteristics, consist with the central government in thoughts and actions to fulfill the great Chinese dream; to strengthen the cultivation of party spirit, adhere to the mass line, and work honestly with self-correction, self-cultivation and integrity. Vision: with a wide vision and clear mind, be able to seize up the situation, grasp the macro economic development trend and the law of industry development, scientific planning, formulation of development strategy and plan, inspire a shared vision, manage thought, and lead cadres and workers forward. Dedication and Self-improvement: conscientiously and responsibly, have a strong internal driving force, does not rest on its laurels, be unwilling to mediocrity, longing for new development and desiring for greater success with perseverance and high morale. Honest and Pragmatic: be honest, truth-seeking and pragmatic, to speak the truth, do practical work, stress practical results, and persevere with the difficulties by adhering to the blueprint; to take the lead in setting an example and be willing to sacrifice, to be diligent in successful career in a generous and noble spirit; to conquer the difficulties and spare no effort with a style of working in earnest, to persistent in strategic implementation. Keep People Rich and Army Strong: complete key types of tasks outstandingly, improve the development and production of weapons and equipment to build a modern defense; with openness and cooperation, civil military integration, combination of industry with finance, and the development of mixed economy, adhere to customer oriented, pay attention to the return of shareholders and create value for all stakeholders. Build and Organize: pick the right person for the right job and enhance the combat capability of the team with broad mind, good leadership and people-oriented; optimize the allocation of resources and coordinate the efforts of all parties to promote the overall development of internal and external force; perfect corporate governance, and continuously improve rules and regulations and management processes to create an efficient organization. Sustain and Transcend: strengthen management and support development, focus on the subject of first-class, dare to transcend to realize the leap from falling behind to competing on the equal footing, even to far ahead, build a century-aged shop, and commit to sustainable development and achieve an everlasting foundation. Reform and Innovation: emancipate the mind and renew ideas, be brave in innovation and reformation, dare to think, to do, to go, to try, to be the world first, and lead the future and drive the development with innovation. independent innovation – a new type of alloy strengthening innovation-driven. Throughout the year, Inspiration Scientific Decision: to thoroughly implement the scientific development view, adhere to the principle of democratic centralism, base on the overall situation and long-term interests in a focused and balanced way, and make scientific decision-making and democratic decision-making in accordance with the law. originated “Graphene Alloy” materials – a major AVIC has obtained a number of new achievements Achievement Vision country and enriching the world.” With ideals and pursuits, With a high aim and strong sense of responsibility, always to: Insisting on the road of Chinese characteristics Committing to the aspiration of aviation service Grow the energy of entrepreneurship In the process of bustle and changes, we sweep away camouflage to enhance concentration and uphold a country take-off dream with conviction. Aviation service: adhere to the strategy of “two integrations, three innovations, five characteristics, and one trillion”, obey and serve the overall situation of reform and development. As a member of AVIC, we should take on the responsibility, love and dedicate to the aviation. In May 2014, AVIC Institute of Aviation Materials from then on. Self-disciplined and Responsible AVIC 48 49 (II) Care for employee, pay back the society (2) Employees’ happy lives 1. Care for Employees, Harmony and Happiness AVIC adheres to the strategy of talent thriving enterprise that gives priority to the development of human resources to improve employees’ quality and ability and safeguard their rights and interests. AVIC is equipped with a team of workforce with a quite high happiness index. (1) 2014 employees statistics Painting and calligraphy exhibition Serial No. Indicator Unit 2014 Remarks 1 Total number of employees Person 548,276 Excluding labor dispatching personnel 2 Number of female employees Person 173,297 3 Number of minority employees Person 15,751 4 Number of foreign employees Person 14,983 5 Ratio of female administrative personnel % 36.99 6 Employee turnover rate % 8.98 7 Rate of social insurance for employees % 100 8 Investment for employee training 104 Yuan 5.01 9 Per capita training time Day 9.9 10 Total training person-time Persontime 1,092,702 Mountain-climbing competitions Award-winning works of Comrade Yangkun West Lake Moon A memory of Southern Xinjiang This is an emotion explosion during the three months of autumn and winter of 2012; at the moment, we were all at Malan Airport, Southern Xinjiang - fought for every minute to ensure the first flight. Great desert never worries no solitary moon, Residual clouds in vast sky not faded. Where sky and desert connected are people and house, Calling for astride along horses. Labor is really beautiful Tree planting activity Cold wind blows off the color of world, Frozen snow washes away excessive magnificence. Goshawk howling is far from the end of the world, Are picturesque rivers and mountains. Birthday party Employee paper-cut Induction training Self-disciplined and Responsible AVIC 50 51 2. Pay Taxes by the Law and Return to the Society (2) AVIC is elected as 2014 China Best Enterprise for College Students Employment At the same time of its own development, AVIC also actively fulfills its social responsibilities and enthusiastically return to the society; it has carried out a lot of work in respect of taking taxation as a glory, promotion of employment, poverty and alleviation and student assistance, providing health aid to Xinjiang, earthquake relief and other fields. AVIC is awarded titles of Advanced Central Enterprise and Advanced Individuals for Development of Poverty Alleviation by SASAC, State Council due to its efforts in fixed-point poverty alleviation; the “Blue Chalk” activity wins the China Charity Award for Outstanding Contributions; and AVIC is also awarded “2014 China’s First Session Five-Star Enterprise in Industrial Sectors to Fulfill Social Responsibilities”. In 2014, to promote the introduction of talents and ease the employment problem for students, AVIC issued Opinions on Strengthening and improvement of Graduate Recruitment, adopting site columns, Wechat and other modern electronic platforms for recruitment propaganda for the first time, which further expanded the scope of special recruitment. It has held special aviation recruitments in 23 universities and colleges with admission seekers of nearly 100,000 people (persontime); it has also held forums and visited 11 colleges and universities. A total of 13,218 graduates were recruited. And in the appraisal activities for “2014 China Best Enterprise for College Students Employment”, AVIC won the honorary title of “2014 China College Students Employment Top 100”. (1) AVIC bulletins to commend advanced tax-paying organizations To AVIC, the year of 2013 is a “year of market efficiency”, an important adjustment year of implementing development strategies and deepening reform, during which, the all personnel of Corporation worked hard and has accomplished the annual research and production tasks and operation development targets. At the same time of growth in both economic scale and economic benefits, AVIC actively pays taxes according to the law with paid taxes of RMB 14.588 billion for the year, with an increase of RMB 1.956 billion on year-on-year basis. Numerous organizations affiliated to AVIC also perform noticeably well and have set an example of operation integrity and paying tax by the law. In the 2014 annual financial plan meeting, AVIC bulletins to commend 12 organizations, such as AVIC International Rainbow Department Store, to incent organizations to make any efforts concerning improve of operational efficiency as well as enhancement of value and tax creation capabilities. According to the audit report data, the consolidated taxes paid by AVIC in 2014 was RMB 17.192 billion, with an increase of RMB 2.604 billion compared with that in the last year. List of advanced tax-paying organizations: Tip: Anyone who wishes to join in AVIC, please focus on Recruitment of AVIC website. Quick Link: http: //www.avic. com.cn/cn/rlzy/rczp/index.shtml (3) “Approaching AVIC International “charity auction On April 24, 2014 when willows were floating the sky of Beijing, twenty foreign guests from 15 countries embassy in China came to Yunhai Hall, Grand Skylight Catic Hotel at 2 p.m., where a worldwide trip carrying the message of love walked into AVIC International. Over 40 items from around the world were sold at the auction, raising a total of RMB 61,950 charitable money, all of which would be used to fund four hope schools in Fengning County, Hebei Province. 3. Disaster Rescue and Relief, Poverty Alleviation (2) AVIC assists Shaanxi to ease drought by artificial precipitation (1) Yun-8 aircraft put into rescue for Ludian Disaster Area in Yunnan fully Since summer of 2014, Shaanxi Province suffered high temperature and drought rarely seen in history. On the bass of “May drought” and serious “high-temperature and summer-autumn drought” occurred in the last year, persistent drought lasted for more than 300 days in Northern Shaanxi and Shangluo areas, and more than 200 days in other parts of Shaanxi. The province’s 85 cities and counties underwent 70% decrease of precipitation; 4.12 million mu of farmland were affected and 122 mu suffered total crop failure; 113.4 thousand people had difficult to obtain drinking water. Shaanxi Province launched Drought Orange Alert and Anti-drought Level IV Emergency Response. On August 4, 2014,after occurrence of earthquake in Ludian, Yuan, Yun-8 aircraft produced by AVIC Shaanxi Aircraft took off immediately from a certain airport in Chengdu, under the leading of members of flight crew from a certain division of airmen, braved the rain, such aircraft fully loaded with relief workers and materials landed in Yunan Zhaotong Airport, becoming the air rescue forces firstly arrived at the disaster area after occurrence of earthquake. On August 6, Chengdu Air Force re-dispatched Yun-8C aircraft to support earthquake relief work in Ludian Yunnan, there are 3 Yun8C aircrafts flying from Qionglai, Sichuan at 7:20, 9:30 and 13:15 respectively and arriving at Zhaotong, Yuannan for execution of task on transport of motors, which arrived and departed for four times, with 30t of materials transported totally. In accordance with the demand of relief work in disaster area, there are many Yun-8C aircrafts arriving at disaster area successively to execute the task on transporting the relief materials, professional earthquake rescue team and technical and medical support personnel. During the rescue, AVIC Shaanxi Aircraft embarked on the preparation of Yun-8 disaster relief aircraft and sent troops to Qionglai, to achieve the preparation tasks of 3 aircrafts; and meanwhile provided on-site coordination for the Yun-8 aircrafts on site or geared up, to ensure the aviation equipment of disaster relief aircrafts in good condition. On the other hand, AVIC Shaanxi Aircraft required the related units to fully guarantee the aircrafts, to ensure that the Yun-8 aircraft could implement air transport and communication in a best state, and thus providing the reliable support for the rescue work. As the main force of artificial precipitation in Shaanxi Province, AVIC Flight Test Establishment was entrusted with a mission at a critical and difficult moment, under sustained high temperature and adverse construction condition, completed the modified task of Yun-12 aircraft in advance, and the aircraft was dispatched from Yanliang to Xianyang Airport for standby in advance. To successfully realize the artificial precipitation, the AVIC crew cooperated with the staff from Bureau of Meteorology, actively studied weather conditions, and developed several flight plans. In early August, the storm rages in the sky of Xianyang Airport finally, many flights flied around it due to bad weather conditions, while this time is a good opportunity for artificial precipitation, and the crew took off decidedly, handled the unstable factors in the cloud layer serenely, adhered to conduct artificial precipitation, and completed the artificial precipitation task in Shaanxi nicely. Through constant artificial precipitation operation, obvious rainfall was occurred in most areas in Shaanxi, and the overall temperature of Hightemperature area was reduced obviously, which plays a critical role in relief of high-temperature and drought weather constantly existing in Shaanxi. AVIC International Tianhong Group Co., Ltd. AVIC Trust Co., Ltd. Shenzhen AVIC-Changtai Investment Development Co., Ltd. AVIC Import and Export Co., Ltd. AVIC Finance Co., Ltd. AVIC International Chengdu Xinhuaxin Chemical Materials Co., Ltd. AVIC International Aviation Development Investment Management Co., Ltd. AVIC Vanke Co., Ltd. AVIC Luoyang Institute of Electro-Optical Devices AVIC International Leasing Co., Ltd. AVIC Aircraft Co., Ltd. Shenyang Aircraft Industry (Group) Co., Ltd. Echo Links “Charity is an extension of culture. Through these auction items, we can carry out cultural exchanges and enhance mutual understanding in a better fashion. China-Africa friendship will also be more secure.” “At first I did not expect to have such a great amount of featured auction items. I felt so happy by the audiences’ enthusiastic participation and dedication of love. I think such activity should be held at least twice a year to attract more countries to participate in.” As a responsible Central Enterprise, AVIC carries out various types of poverty alleviation activities all across China. Especially in Guizhou and other regions, AVIC and its employees’ poverty alleviation actions have lasted for decades, during which there are a lot of touching stories. See “VII. Reading Sounds in —ElsaTECLEAB, GAAS Representative (African Ambassadors Spouses Association) and Mrs. Eritrean Ambassador Mountains (Special Topics)” for more information. On August 6, 2014, Yun-8 aircraft arrived at Yunnan Zhaotong Airport and unloaded the relief materials. 52 53 Green development of the AVIC Construction of environmental management system Development of low-carbon ecological industry Carry out energy conservation and consumption reduction action 56 53 54 AVIC upholds the philosophy of “Green Development, Harmonious Development”, to facilitate the corporate transformation development and innovation, thereby saving energy and improving resources utilization efficiency, establishing long-term environmental protection mechanism and creating a resources-saving and environment-friendly development model for the aviation industry. (I) Construction of environmental management system 1. The Launch of “AVIC Evaluation Standard for the Green Aviation Industry” In addition to the implementation of the works for the ISO14001 Environmental Management System, AVIC also prepared and issued the “AVIC Evaluation Standard for the Green Aviation Industry” (Q/AVIC 09301.2 – 2015 and Q/AVIC 09302.2 – 2015), as well as, commenced the standard pilot works in six pilot units (i.e. AVIC Chengfei, Shenfei, Liming, Xihang, Baocheng and Xinhang). As of the end of the year, AVIC 成 飞 has obtained the experts’ appraisal and has been the first unit passing the abovementioned evaluation criteria. The establishment of the industry standards and the implementation of the pilot units laid a solid foundation for “Green Aviation Industry”. 2. The Establishment of a Precaution System for Environmental Contingencies In 2014, AVIC prepared and issued the “Emergency Response Plans for Environmental Contingencies of Aviation Industry Corporation of China (2014)” (Hang Kong Zhi No. [2014] 1691), which specified the regulation of environmental contingencies. In the meantime, AVIC commenced the approved filing works of the emergency response plans for environmental contingencies to its subordinate units and member units. Units at all levels have complete emergency response systems in place which effectively prevent environmental contingencies. As of the end of 2014, over 65 corporations under AVIC’s units have been awarded the Environmental Management System Certification. AVIC actively promoted the establishment of the statistics, detection and assessment systems for energy saving and emission reduction. The statistics system covered all member units. Each member unit has a comprehensive management system for energy saving and emission reduction in place via the establishment of “AVIC Environmental Management Platform for Energy Saving”. AVIC also formulated the industry standards of “Audit Requirements of Clean Energy for the Aviation Industry” to carry out audit works of energy auditing and clean production for 62 member units. The Green Development of AVIC 54 55 (II) Development of low-carbon ecological industry AVIC Medical Industry Management Co., Ltd was formed in 2014 to integrate all medical institutions under AVIC considers the optimization of business structure, transformation of development modes, saving energy restructuring and escrow to form a O2O of medical and healthcare industry, thereby realizing long-distance and resources, and reducing emission as important social responsibilities, and actively develops an energy- therapy and extending pension industry to the community as soon as possible. AVIC will also establish a saving and environment-friendly low-carbon ecological industry. platform of pension and health industry on this basis, to make the pension and health industry that combines AVIC Assets into an entity. AVIC Medical will establish a regional “medical unity” by ways of integration, merger, healthcare and nursing moving toward standardization, network formation and clustering, as well as, enlarging 1. Developing Environmental Protection Aircrafts Types and Green Aviation Industrial Chain AVIC incorporates environmental protection requirements and standards into various processes, covering products research and development, manufacturing, services, etc. It develops Environmental Management System Certification, low-emission engines, environment-friendly turboprop regional jets and general purpose aeroplanes, so as to create a green aviation industrial chain. In 2014, the new turboprop regional jet, MA700, being developed by AVIC obtained milestone results. The aircraft targets the medium and short haul regional aviation market and applies modern green aviation technologies, aiming at obtaining the CAAC/FAA airworthiness certificate and enhancing its competitive advantage in the medium and short haul regional aviation segment, thereby becoming the next generation mainstream aircraft type of turboprop regional jets. MA700 aircraft will apply a variety of new aviation technologies, including the next generation turboprop engine technology, the telex flight control system, the advanced aerodynamic design, a new composite bearing structure, the active noise reduction technology, etc. AVIC considers the optimization of business structure, transformation of development modes, saving energy and resources, and reducing emission as important social responsibilities, and actively develops an energy-saving and environmentfriendly low-carbon ecological industry and strengthening the business leveraging on the capital market. AVIC’s pension and health industry are at the beginning stage, and has formulated a “three-step” strategy up to 2020: Firstly, the company will establish Secondly, the company will attract Thirdly, the company will complete a platform of pension and the franchisees from sectors the establishment of a platform by health industry to fully utilize the of financial, insurance, elderly 2020, to form a creative pension advantages of medical institutions institutions, in particular the culture and health industry cluster with and aviation industry. Some creative institutions, to form brand advantages of AVIC, and hospitals will be converted into network distribution advantages tap into the securities market elderly institutions providing and gradually establish a regional timely for business expansion. healthcare services, aiming at retirement pension platform. exploring the pension industry The application of new technologies helps MA700 aircraft become the world’s next generation environment combining healthcare and protection aircraft type of turboprop regional jets. The direct cost, carbon dioxide (CO 2) emissions and nursing. nitrogen oxides (NOX) emissions of MA700 aircraft reduce 10%, 20% and 30% to 50% respectively, with an outfield noise better than the standard requirement. MA700 aircraft also provides a bigger, quieter and more comfortable cabin environment, with a sound airport adaptability and a rapid departure ability equivalent to a turbofan aircraft. 2. Developing an Eco-Protection Industry and Realizing Green Aviation Innovation Premier Li Keqiang emphasized in the Government Work Report that substantive breakthrough should be achieved in the aspect of environmental protection; innovation, intelligent transformation, foundation strengthening and green development should be earnestly adhered to; and the lifestyle and manufacturing (II) AVIC holds on strongly to develop green industry though facing difficulties 20% In recent years, wind power and photovoltaic industry has reached its trough. However, AVIC is determined to develop green energy business and commenced The carbon dioxide emissions of MA700 aircraft will reduce 20% the largest distributed photovoltaic power project in China with a total investment amount of RMB3.8 billion in August 2013. services industry covering tourism, healthcare, pension, innovative design should be actively developed, which The first batch of 325 kwh distributed photovoltaic power pilot project of AVIC is in line with the green aviation innovation proposed by AVIC. (I) AVIC develops pension and health industry Hebei Anji Hongye was integrated into the power grid in the morning on 13 March, AVIC distributed photovoltaic power generation demonstration project combined to the grid 2014. It is the first pilot project of AVIC Group integrated into the power grid. The project was initiated, organized and implemented by AVIC Heavy Machinery, and was fully invested and constructed by AVIC Huili. The expected annual power According to the data issued by the Committee for Elderly Affairs of the PRC, the aging population in China will generation capacity is 4,083 million kilowatt-hours, saving 12.25 tons of standard increase from 178 million in 2011 to 221 million in 2015, and the aging population will represent one-third of the coal per year, and reducing 407.12 tons of carbon dioxide emissions and 12.25 national population around 2050. Based on the international standard, China has already become one of the tons of sulfur dioxide emissions per year. elderly countries. It poses a big challenge but also a great historical opportunity to develop the elderly industry. AVIC is well prepared for the development of pension and health business. The Green Development of AVIC 56 57 (III) Carry out energy conservation and consumption reduction action 2. To Promote and Apply the Technology of Energy Saving and Consumption Reduction We actively implemented “green manufacturing”, carried out green production, — Firstly, applying new technology and new process, phasing out obsolete devote more effort to energy saving and emission reduction technological 11.90% 19.13% The comprehensive energy consumption for every RMB10,000 of production value (comparable price) reduced by 11.90% The comprehensive energy consumption for RMB10,000 added value (comparable price) decreased by 19.13% upgrade, improve the comprehensive treatment of pollutants, conduct green office activities and strive to uphold the philosophy of low-carbon development. In 2014, AVIC further implemented the national policy of energy saving and emission reduction. The comprehensive energy consumption for every RMB10,000 of production value (comparable price) reduced by 11.90%, the comprehensive energy consumption for RMB10,000 added value (comparable price) decreased by 19.13%, and the emission of SO2, COD, NOX and ammonia reduced by 6.78%, 7.99%, 8.02% and 6.85% respectively. production capacities, achieving energy saving and emission reduction. For example, coordinating the manufacturing transformation via digitalization, replacing traditional paper printing, saving raw materials for manufacturing, as well as, conserving a large amount of water and power consumption, so as to avoid pollutants caused by processes such as heat treatment. — Next, reducing pollutant discharge at its very source, using clean process and equipment. For example, carrying out the coal-to-gas conversion project with furnace exhaust gas as the treatment focus; increasing desulfurization precipitator with desulphurization efficiency increased from 30% to 80%; using oxygen-rich The Steering Group for Energy Saving and Environmental Protection of Aviation Industry Corporation of China AVIC renewable strategic metals and alloy project phase I commissioning test run achieved success sewage treatment system to reduce pollutant discharge. — Promoting resources reusing and carrying out green operation. For example, The Office of Energy Saving and Environmental Protection of Aviation Industry Corporation of China implementing wastewater reusing, and using natural lighting, wind power and solar power in factories. 6.78% 7.99% In 2014, AVIC further implemented the national policy of energy saving and emission reduction and reduced SO2 COD emission reduced by 7.99% The Administration Office of Energy Saving and Environmental Protection of the subordinate units — Researching and applying new green aviation technologies, focusing on the development of technologies reducing pollutant discharge and internal and The Cooperative Unit for Energy Saving and Consumption Reduction of AVIC The Cooperative Unit for Environmental Protection of AVIC The Unit of Energy Saving and Environmental Protection Experts of AVIC external noise of aircrafts. 3. To Research and Develop New Environmental Protection Treatment Technology The Administration Office of Energy Saving and Environmental Protection of the member units The pervasion of smog has become more frequent and serious in many cities emissions by 6.78% of the PRC in recent years, which not only affects the transport and passenger travel, but also directly threatens the health of people in China. Hence, one of the 1. To Issue the Pollutants Treatment Standard and Technology of the Industry focuses of AVIC is to fully utilize our professional advantages in aviation platform to eliminate the smog and recreate a blue sky for the people in China. The Cooperative Unit for Environmental Protection of AVIC organized and AVIC Hangyu successfully achieved a breakthrough in a series of critical prepared the “Advanced and Practical Technology Information of Major Pollutants technologies by utilizing the unique mature technologies of military products based Treatment for Aviation Industry” and the “Work Manual of Energy Saving” to 8.02% 6.85% NOX emission reduced by 8.02% Ammonia nitrogen emission reduced by 6.85% on the aviation products. It developed soft-wings unmanned aerial vehicle and provide advanced and practical technology of energy management and pollutants treatment under various manufacturing process conditions for the industry, so as to improve the pollutants treatment of its operating units and enhance the compliance management ability. obtained a variety of patents. AVIC fog dispersal soft wing UAV platform field experiment achieved success On March 2014, field test of anti-fogging flexible-wing UAV was successful, achieving desired results, and drawing widespread attentions from all sectors of society. (special topic) 58 59 AVIC moving toward the world AVIC has always been actively geared to the global and open to the world over the three decades since the reform and opening up; it has exported a total thousands of aircrafts, imported hundreds of aircrafts, contributing to a large number of introduced technologies and international cooperation programs. In recent years, under the guidance of its strategic goals - “Two Integrations, Three Innovations, Five Characteristics, and One Trillion”, AVIC speeds up the pace of global involvement in terms of international trade, overseas M&A, and direct investment, etc. that its footprints have been all over the world, forming the initial pattern and volume of a large multinational company. In overseas M&A and operations, AVIC, as a rapidly globalizing enterprise, unfolds an image as a responsible corporate for global citizens by adhering to combining internationalization development and the fulfillment of social responsibilities. AVIC over the seas 59 Localized business philosophy 62 (I) AVIC over the seas To be a friendly and sincere international citizen 64 1. AVIC’s Scale Abroad Achievements in Overseas Operation Since the reform and opening up, AVIC began to set up a large number of permanent establishments in foreign countries based on international trade. In recent years, its continuous overseas M&A and industrial investments have formed a starry global network with affiliated organizations and institutions widely distributed in dozens of countries and territories including Asia, Africa, the Americas, Europe and the Pacific, etc. As of 2014, the number of overseas companies had reached 182, engaged in numerous business fields, such as international trade, aircraft manufacturing, high-end retail, engineering construction and resource development. AVIC begins to show the posture as a large-scale multinational company. Serial No. Name of indicator Unit 2010 2011 2012 2013 2014 1 Number of overseas companies Pcs 53 94 139 139 182 2 Number of overseas employees Persons 3,100 12,900 14,000 15,800 19,800 3 Export revenue from non-aviation products 108 dollars 9.8 15.9 19.8 12.4 17 4 Export revenue from civil aircrafts 104 Yuan 164,640 34,485 84,712 12,509 71,148 AVIC moving toward the world (special topic) 2. Main Activities in 2014 Te n d e r o f f e r a n d h o l d i n g o f K H D 60 61 AVIC integrates and sets up continental AVIC Continental Company acquires F406 aircraft Humboldt Wedag International AG (KHD) motors group production line I n r e c e n t y e a r s , AV I C t e n d s t o In January 2014, AVIC International saw the In February 2014, AVIC International In April 2014, the Continental Motors located in the accelerate its overseas investment. delivery of tender offer and holding of KHD. announced the establishment of Continental United States acquired by AVIC in 2011 acquired the AVIC processes unique advantages in By achieving majority shareholding of KHD, Motors Group. AVIC International acquired F406 twin-engine aircraft production line from the implementation of overseas investment, AVIC has greatly enhanced its international Continental Motors, Inc. (USA) in 2011; bankrupt Reims Airlines. F406 is a 14-seat general- where the support network established competitiveness in terms of cement- and acquired Thielert Company (Germany) purpose aircraft with non-pressurized cabin. With during decades of international trade concerned EPC projects, which lays a more in to form Continental Motors Germany the acquisition, AVIC further enriched its production allows AVIC to get hold of information solid foundation for the development of in 2013. The Two well-known enterprises lines of light business aircrafts and general-purpose around the world comprehensively cement-based mechanical and electrical and the recent established CMB constitute aviation / special-mission aircrafts. and conveniently; and the friendship EPC businesses. the world’s only manufacturer with the full formed by years of friendly exchanges line of aviation gasoline piston engines allows AVIC to integrate into the local and aviation coal / diesel piston engines - community quickly. Continental Motors Group. January February April July August October Xi Jinping witnessed the Signing of Contract with Venezuela Venezuela local time on July 21, witnessed by Chinese President Xi Jinping and Venezuelan President MADURO, a cooperation contract for a project of 3500 tons/day clinker cement production line was signed between AVIC and a Venezuelan enterprise. In recent years, AVIC has further extended in Venezuelan markets and actively fulfill their social responsibilities, which have made positive contributions to raise the level of the Venezuela’s building materials industry, create employment opportunities and improve people’s livelihood. Establishment of Cambodia Bayon Airlines Ltd. In August 2014, Joy Air subordinated to AVIC was established Cambodia Bayon Airline Ltd. and started the first flight at the end of the same year, becoming the first foreign airline that operates with Made-in-China aircrafts. Within five years, Bayon Airlines plans to introduce twenty “Modern Ark” 60 regional aircrafts and ten Airbus 320 trunk aircrafts, devoting itself to building a airline network that “covers throughout Cambodia and connects Cambodia with ASEAN internally and Japan and South Korea externally”. This is an important step for Joy Air to go out and achieve a long-term development, and a beginning to expand overseas aviation markets. FACC AG listed in Austria successfully At 9:00 on June 25 of Vienna local time, FACC AG, a subsidiary of AVIC was officially listed in Vienna Stock Exchange with the successful fund-raising of RMB 1.81 Billion (EUR 213 million), becoming the 29th listed companies affiliated to AVIC. This is the first IPO and listing of an subordinate enterprise to AVIC in European capital market, which expands the positive influence of AVIC in Europe and marks the AVIC’s successful completion of operations concerning overseas projects from acquisition, improvement of management, enhancement of core competitiveness, and increase of outstanding IPO and listing. It plays a leading roles in exploring practice and implementation of the “Go Out” strategy for Chinese enterprises as well as operations for overseas real economies and in financial capital markets. June AVIC roadshow of liability insurance for aviation products rounded off On October 28, AVIC rounded off a special roadshow of liability insurance for aviation products in London insurance market. AVIC’s acquisition for Hilite Company Great changes existed in China’s aviation subcontract production and complete-aircraft export make incurring liability insurance for aviation products an international rule. More than 50 subcontract-based and export enterprise affiliated to AVIC are facing such insurance needs. However, this type of insurance remains a blank in China and they need to international reinsurance with large amounts covered. Meanwhile, there also exist misunderstandings and concerns in “Made in China” in the international insurance market, which causes them holding an attitude of “no involvement” or “high price”. The roadshow has changed their attitudes of cooperation and created favorable conditions for “Made in China” to go abroad. successful M & A delivery from 3i Croup to AVIC EM On October 30, AVIC took over all-around global assets and businesses of Hilite Company upon the in Frankfurt. The acquisition will greatly promote the upgrading of China’s core technologies in terms of automotive driveline and powertrain to a world-class level. AVIC moving toward the world (special topic) 62 63 (II) Localized business philosophy 2. Localization of Employees Employment 1. Localization of corporate culture of non-discrimination and in strict accordance with the management mode of “internationalization of talents, With the continuous development of overseas business, AVIC overseas companies, in line with the principle and localization of employment”, actively promote the employees localization strategy by means of recruitment, employment, training of local employees to promote local employment and talent cultivation. By the end of 2014, the total number of AVIC’s overseas employees were about 19800, the vast majority of which are foreign AVIC adheres to the Chinese cultural concept employees, accounting for about 3.61% of the total number. In the process of overseas operations, the initially “tolerance, solidarity, mutual assistance, and cultivated and created team of employees with diverse sources and diverse forms of employment further win-win” with full respect for the host country’s promote a closer contact of overseas subsidiaries with local society. n at ional relig ion, c u st om s a n d c u l t u re , a n d lifestyle, and actively takes various exchange Foreign employees of South African AVIC-International Flight Training Academy activities to promote cross-cultural exchange and integration between Chinese and foreign As a professional school for training civilian pilots, AVIC-International Flight Training Academy (AIFA) has employees and to promote overseas companies to become a pioneer of the “Go Out” strategy of Chinese aviation industry; become a high quality platform build their corporate culture based on distinctive to push the Chinese civil aviation airport to African market. More than half of all 103 employees in this AVIC characteristics. flight school come from South African; the general manager, chief director and directors of the base as well as many flight instructor and chief instructor teaching the theory are locals. AIFA creates a large O n December 2 4, t h e Ch ri st m a s E ve , AV IC number of job opportunities for the locals when it enters into the market of South Africa. Chairman, Lin Zuoming sent a congratulatory letter to CAIGA Cirrus in the United States, to extend holiday greetings to the company’s employees and Collaboration in perfect harmony AVIC their family members. In the letter, Lin Zuoming said that, since Cirrus has become a wholly owned subsidiary to CAIGA, under the leadership of the Board of Directors, and with joint efforts of Cirrus’ executive team and all the employees led by Mr. Dale KLAPMEIER and Mr. Patrick WADDICK, they have achieved sustained improvement of operating performance. Foreign employees of AIFA Cirrus SF50c Aircraft local office of Kenya that integrates into the local community AVIC moving toward the world (special topic) 64 65 (III) To be a friendly and sincere international citizen (2) Profitable AVIC FACC AG and Successful Listing AVIC also accelerates its accession to the ranks of global enterprise citizens during the “Go Out”. As a rapidly globalizing enterprise, AVIC adheres to the combination of internationalization development and the fulfillment of social responsibilities. The healthy development of overseas enterprises becomes an example of Sinoforeign economic and trading cooperation, and a model international corporate citizen to make stakeholders’ satisfaction; it also wins the respect from local society. The revenue of FACC AG during the fiscal years 2008 and 2009 was EUR 277 Million, but the operating profit was only EUR 6.4 Million with a loss in net profit of EUR 19.6 Million before being acquired by AVIC. After completing the acquisition of FACC AG, AVIC proposed a strategy of concurrent internal and external development, that is, to reduce manufacturing costs significantly and improve international competitiveness by means of China’s low-cost centers as well as to create conditions for listing of FACC AG. Several years after 1. Operation Management and Profit According to the Law the acquisition and integration, compared with the previous fiscal year, the sales revenue of FACC AG increases from EUR 250 Million to about EUR 500 Million, EBIT from more than EUR 8 Million to more than EUR 40 It is an enterprise’s own duty and responsibility to demonstrate the profitable outlook and operate according to the law, and it is also a premise to win the respect of society. (1) Acquisition and integration of Cirrus Million, and employees from more than 1,400 people to 2,400 with an increase of more than 1,000 jobs. In June 2014, FACC AG was successfully listed in Vienna. Austrian Government sees it as a new example of By means of such efforts, improvement was made Sino-Austrian cooperation and another milestone in China’s investment in Austria. It is widely reported and in the overall economic performance of AVIC Cirrus Founded in 1984, Cirrus is the world’s leading year by year. It delivered 276 aircrafts in 2013 with an manufacturer of small aircrafts. After the financial increase of 29% on year-on-year basis, accounting crisis in 2008, the United States’ market demand for for 37% in the global market segment; it delivered small general-purpose aircrafts shrank rapidly, leaving 308 aircrafts in 2014 with an increase of more than Cirrus’ development in plight. CAIGA then seized the 12% compared with that in 2013, which was the favorable opportunity to realize the strategic M&A of best performance of new aircraft shipments since Cirrus in 2011. 2008 and further reinforced its sound share in the market of same-level aircrafts. However, after the M&A, the world economy touched the bottom again, causing Cirrus’ market to continue Joint efforts of employees from both AVIC and Cirrus to deteriorate with serious shortage of funds and ushered in a bright future, which also won the local the M&A strategy faced serious challenges. In face community’s praise and drew their attention. In 2013, of difficulties, CAIGA sized up the situation and Cirrus SR Aircraft obtained the “American Innovation provided financial and policy supports for Cirrus Award”. PR Newswire reported in a large format immediately to ensure operational turnover and R&D about CAIGA Cirrus expanding the capacity of investment. At the same time, it made great efforts to Grand Forks Parts Plant and its preparations for the accelerate innovations in technologies and products production of jets the big screen of Times Square, and actively explore innovative business models New York. generally considered by Austria’s main media that, thanks to the strong support of Chinese shareholders, the listing of FACC AG is quite an extraordinary step, which is deemed as a “coronation” in the FACC AG’s company history. 308 AVIC delivered 308 aircrafts in 2014 with an increase of more than 12% compared with that in 2013 2. Equality of Treatment and Care for Employees Overseas company of AVIC adheres to abide by the provisions of distribution according to work and equal pay for equal work, and pay remuneration to employees in accordance with relevant policies and regulations as well as company policies. Both male and female employees in each category receive equal pay. And hotlines are available to help overseas employees to solve problems in terms of cultural integration, family communication, medical treatment, differences in diets and the like. with external sales expansion and inhouse cost reduction by strengthening corporate governance and management control as well as giving full play to the advantages of Cirrus in respect of branding, marketing, customer services, R&D, production, sales, and airworthiness management, in order to achieve management improvement for Cirrus. Foreign and Chinese employees of AVIC celebrated the successful startup of Turkish Cement Project AVIC moving toward the world (special topic) 66 67 3. Co-build and contribute to the local community and project management services provided by Support and help of the local parties are inseparable the upgraded plant in November 2014. 4. Carry out Overseas Public Benefit Activities KHD affiliated to AVIC. Italian Prime Minister, Matteo Overseas companies affiliated to AVIC focus on people’s livelihood and social progress of the communities where they are located and will carry out public benefit activities to promote social development and progress according to actual situations and needs of the communities. RENZI, personally ignited the clinker cement line for for AVIC’s overseas development. AVIC shall, on the basis of faithful operation according to the KHD has rich experience in plant transformation law, actively pay attention to and participate in projects that it is capable of installing efficiently and construction and development of local areas, realize commissioning new equipment and minimizing enterprise value for local service, and perform social investment costs under the circumstances to ensure responsibilities. the normal operation. (1) The most environmentally friendly cement plant at the food of Alps In addition, KHD also transform cement plants to Rezzato Cement Plant affiliated to Italcementi Group Lebanon, Thailand, India and other countries. is located in the famous resort, Lake Garda, at the foot of Alps. The Group decided to transform and upgrade Rezzato Cement Plant to make it become (1) AVIC International held Africa Vocational Skill Contest On October 8, the Africa Vocational Skill Contest initiated by the Embassy in Kenya and AVIC International was rounded off in Nairobi, with three vocational college competing teams won the top three and they received prize funds and were awarded with a contract worth USD One Hundred Thousand, respectively; and three persons were given the opportunity to have further study in China. urban solid waste treatment stations successfully in Italy, Norway, Russia, Latvia, Romania, Brazil, Turkey, (2) New energy company’s PV power plant roots in England Africa Vocational Skill Contest The six-week challenge contest has trained and upgraded skill levels of machine processing and comprehensive professional skills of Kenya’s vocational and technical colleges, and also advanced education and training reform of local machining and other related professions. More than 50 players from 18 vocational and technical colleges around Kenya participated in the competition. “Our devices in the school are quite outdated and many students have share one; the devices here are very good. I have learned a lot from Chinese teachers.” one player said. Three intercommunications were hold during the contest with successful local entrepreneurs and young leaders invited to provide face-to-face communications and sharing of business experiences as well as encourage players to change their fates with great efforts and to realize their dreams, and also help them to understand the status of the manufacturing sector in Kenya, providing employment opportunities. one of the most environmentally friendly, most energy-saving and most efficient cement production I n M a rc h 1 9 , t h e g r i d c o n n e c t i o n f o r AV I C enterprises to welcome its 150th anniversary. International terrestrial PV power plant project in Eventually, it chose environmentally friendly and UK, namely the SpriggsFarm Power Station, was energy-saving equipment, clean technology solutions a complete success. This is the first new energy project operated successfully in Europe of the new energy company by active implementation of the strategic layout of market. Kenya is the first station of the Africa Vocational Skill Contest. AVIC wants to extend it to more African countries in order to enable more Chinese enterprises to help local vocational skill training and employment of young people in an even better fashion. (3) Africa sees China’s first overseas technical support center for civil aircrafts (2) AVIC International New Energy built roads and helps students in Cambodia To implement the “China-Africa Regional Aviation Cooperation Program” initiated by Premier Li Keqiang during his visit to Africa to provide technical New Energy builds roads for Cambodia services and spare parts support for African users, AVIC officially established its first Chinese overseas Tanzania. In the future, AVIC will gradually establish customer service support centers including airline technical support, spare parts support, flight simulation training, and aircraft maintenance, to deliver timely, effective, and comprehensive customer services for Chinese aircraft users in Tanzania and neighboring countries. In November 2014, the completion of free-of-charge village roads supported by AVIC International New Energy Cambodia greatly improved traffic conditions for local villagers. Previously, New Energy Cambodia carried out charity donation activities for the rural primary school of Trapaing Kaen, during which, books, small drawing boards, color pens, and other school supplies were donated; and they also approached poor families of students to learn more about local life, education and healthcare, with the hope to provide healthy life and happy growth for children. technical support center for civil aircrafts (Tanzania) in The most environmentally friendly cement plant at the food of Alps established by AVIC KHD The activity is the first vocational skill contest in Africa. With “teach one to fish” as the starting point, focusing on the concerns of general lack of professional skills and high unemployment rate of young people in Africa, it is hoped that the training and contest may enhance local young people’s employment skills, promote the combination of education and industry and create a new mode for Chinese enterprises to fulfill their social responsibility in foreign countries. (3) AVIC EM makes contributions orphanage in Sri Lanka AVIC EM Sri Lanka makes contributions to “Loris” orphanage August 7, AVIC EM International Sri Lanka carried out donation activity called “Let Love Hold Future” in Loris orphanage located in Colombo. The Company contributed food, stationery, cooking utensils, and electrical appliances worth Rupee 200 Thousand. (special topic) The sound of reading in the mountains “Blue Chalk” of the teacher recruitment and supporting education 69 Sponsorship and Assistance – “Parents’ Love” 70 68 69 Children are flowers of the motherland, the hope of the world, and it is our responsibility to take care of them for thrive. Education is the foundation of healthy growth of children, an important way to get rid of poverty. Poverty is the root cause of children deprived of education. AVIC devotes itself to long-term poverty alleviation by education, continuously carries out “Fixed-Point Poverty Alleviation”, “Small Hands in Large Hands”, “Light the Dream”, “Blue Chalk” and other public benefit activities, benefiting a total of more than 20 provinces, more than 1,000 schools, and more than 70,000 students. (I) “Blue Chalk” of the teacher recruitment and supporting education Learned from longer-practice of poverty alleviation by education, AVIC realized that: the poor foundation of teachers in poor-stricken areas becomes an important long-term factor restricting the development of education and poverty alleviation. Thus, an creative activity of “teacher recruitment and education supporting” was gradually formed. In 2010, AVIC started up “Blue Chalk” rural teacher training public benefit action to recruit excellent volunteer teachers and provide free training for rural teachers. The influence of “Blue Chalk” expanded gradually and became the potential of a prairie The 17th “teacher recruitment and education supporting” action sets off again fire from a single spark. At first, only a few people, dozens of people, and later hundreds of people, participated; and a series of love projects are derived such as “Mother Canteen” and “Love Desk”; the project has been widely responded and participated. In the recent five years, a total of more than 120 excellent volunteering teachers have been recruited all across China, providing free training for more than 16,000 rural teachers from more than 6,000 schools in Jiangxi, Guizhou, etc.; it has updated their philosophy of education, broadened their horizons, and played a positive role in the improvement of classroom teaching effectiveness. In the first “China Charity Exhibition” in 2012, “Blue Chalk”, as a brand public benefit project of AVIC, was well received and won the “China Charity Award for Outstanding Contribution”. In July 2014, Shenzhen saw the 5th anniversary of “Blue Chalk” and 2014 Set-out Ceremony sponsored by AVIC International Charitable Fund. 45 excellent teachers as well as principals of middle and elementary schools and education experts from all across China will set off again to provide an one-week free training for about 5,000 rural teachers in Guiding County and Changshun County of Guizhou Province and Dayu County, Chongyi County of Jiangxi. The sound of reading in the mountains (special topic) 70 71 project, and was praised by the local government and the masses. In recent years, Guizhou Airline has organized 14 enterprises to conduct the activity “Ten thousand party branch paired, ten thousand party members assisted” with the 14 state-level poverty-stricken villages in 7 counties (districts) in the province, which started the work of more large-scale integrating into the regional economy and fulfilling social responsibility. AVIC volunteer visits the sponsorship student In the long process of helping the poor, Guizhou Airline of AVIC concerned the new problem of stayat-home children dropping out the school and lacking of love. Guizhou Airline volunteers launched a sponsorship action “Parents’ love”. They chose poor dropout children for volunteers to “adopt” according to their own economic conditions, providing 100 yuan per month to the sponsorship children, and often write to and visit them, so as to make the poor stay-at-home children to go back to school due to AVIC leader’s visit of Pitaya Poverty Alleviation Project the relief, and get mental health growth due to the love and care. The key of AVIC volunteers’ loving action is not the donation amount, but the true love and care to the (II) Sponsorship and Assistance – “Parents’ Love” stay-at-home children. The problem “Stay-at-Home Children” is an emerging one encountered in poverty On June 9, 2015, four stay-at-home alleviation in recent years. In addition to financial support, the children need more of children committed suicide by taking psychological care. And the poverty alleviation and student assistance done by AVIC pesticides in Bijie, Guizhou. That is not the has been adhered to, by means of long-term practices, has been gradually expanded first occurrence of such similar incident in and deepened, having touched people’s hearts. Bijie. In 2012, five children died of carbon monoxide poisoning when they refuged Guizhou Airline Poverty Alleviation and “Parents’ love” Action themselves in a garbage can and started In 1993, Guizhou Airline of AVIC was commissioned by the former AVIC I, to conduct teacher, of which the youngest was only 8 the party construction and poverty alleviation in the 4 relative poor counties, including years old...... without exception, they are Zhenning, Guanling, Puding, Ziyun. In recent 20 years, Guizhou Airline has invested all lacked of happy childhood as peers poverty alleviation funds over 30 million yuan in terms of the culture, education, health, in cities and did not have basic life care breeding, cultivation, transportation, water conservancy and renovation of dilapidated and spiritual care because their parents buildings, etc., combining with practice, carried out some effective work based on the worked in other places all year round. fire to warm themselves at a rainy night; in 2014, twelve girls were raped by a Love links: As long as RMB100 per month, you can change a poverty-stricken child’s life, If you have been motivated, please contact the following volunteers: AVIC YU Ning: Mobile phone 18611196234 QQ 375420626 Retrospect and Prospect 72 73 Retrospect and Prospect 74 75 In 2014, AVIC carried out the “Year of Management Reform” activity in a deep-going way to overcome difficulties incurred by the economic downward pressure and made new achievements in various tasks. It has fulfilled social responsibilities properly in concert with the pace of development. New breakthrough has been made in aviation equipment R&D; new achievements have been made in civilian industrial development; new breakthrough has been made in overseas M&A and operations; solidification and growth have been achieved in operating results; related market responsibilities have been well fulfilled, and expectations of others have been well responded. Management in terms of safety and quality has been enhanced to build and maintain the intrinsically safe and reliable aviation industry manufacturing system; continuous promotion of enterprise management according to the law and compliance operations has been carried out; the development of anti-corruption and the construction of four undesirable working styles have been advanced; management improvement has been promoted in all aspects by implementation of AVIC Operation System (AOS), strengthening of innovation-driven roles, and transformation of scientific and technical achievements, to lay a foundation of self-discipline and innovative responsibility to fulfill social responsibilities. AVIC cares about its employees, conducts local investment, pays tax by law, returns to the society and actively leads and participates in various community benefit activities, in which AVIC plays a positive role and makes should due contributions, in China and foreign countries, and effectively fulfills its responsibilities in the communities. In terms of environmental responsibility, it continues to devote itself to adjustment of internal economic structure and development of green economy, saving energy, vigorous development of new energy and green health industries to promote the transformation of the macro-economy in its own development and upgrading way, and to play its won role in environmental protection and sustainable economic and social development. In 2015, AVIC will promote “running enterprise according to law” in all respects by holding onto the lawbased construction. In terms of social responsibility fulfillment, AVIC shall determine to accomplish research and production tasks, expedite the implementation of civil aviation industry and expand the development blueprint of civilian industries with the emerging aviation industries as breakthrough; to push forward soundly the development of an innovative group based on technology innovation; to enhance the operation and management control capabilities by the driving force of deepening the reform; to implement all requirements of a law-based enterprise by the starter of running the enterprise according to law; to strengthen comprehensive risk management, adhere to promotion of the construction of a clear and honest organization, talent teams and culture depending on the mainline of secured development. In terms of social responsibility management, AVIC shall plan and set up AVIC socially responsible funds to guide and build more projects that can show the image of AVIC’s overall fulfillment of its social responsibilities, to support the group and member organizations to undertake the social responsibility as central enterprises and establish the image of good corporate citizens. AVIC Chairman, Lin Zuoming said: “Vision determines altitude; responsibility creates value!” An enterprise with a sense of responsibility is of more growth potential. AVIC will regard social responsibilities as an powerful engine to promote its healthy development and shoulder responsibilities and advance forward in great strides on the way of achieving the China Dream! Appendix 76 77 Comparison table of GRI indicators Expert Evaluation 2014 Corporate Social Responsibility Report released by AVIC completely discloses the Company’s responsibilities to shareholders, Disclosure standard of general information Content of indicator Reference location G4-1 The declaration made by organization top decision-makers (such as CEO, Chairman or persons at equivalent senior positions) on the relevance between the sustainable development and the organization, and the organization’s sustainable development strategy P8-9 The report also shows the Company’s social responsibilities and public benefit charitable responsibilities in foreign countries in unique G4-2 Describe main impacts, risks and opportunities P8-9 manners of the two special topics “AVIC Going Global” and “Reading Sounds in Mountains”, which fully illustrates that, AVIC is an eligible Introduction to the organization customers, employees, environment and community, and related stakeholders, as well as critical issues concerned in respects of safety, Category quality, energy saving, etc. in a systematic manner, which fully embodies AVIC’s concept of social responsibilities, “Heart as Wing the and Fly Strategy and analysis with Dream”, and its achievements made by active fulfillment of its social responsibilities. G4-3 Name of organization About the Report G4-4 Primary brands, products and services P1, P18-33 G4-5 Location of organization’s headquarters P1 G4-6 The number of countries and what countries the organization operates in, or which counties have close relations with the sustainable development topic set forth in the Report P57 G4-7 The nature and legal form of ownership P1 G4-8 The market the organization serves (including region segmentation, types of service-related industries, types of customers/beneficiaries) P1, P30 G4-9 Size of the organization, including number of employees, number of operational sites, net sales amount (applicable to private sectors) or net income (applicable to public bodies), total market capitalizations by debt and by equity (applicable to private sectors), quantity of provided products or services P1, P17 consolidate, innovate and develop continuously by the opportunity of 2014 CSR Report to establish a new benchmark for the sustainable Total numbers of employees divided by labor contracts and sexes P46 development of the industry and to become a leader of Central enterprises in respect of social responsibilities. Total number of permanent employees divided by labor contracts and sexes P46 Total numbers of employees divided by formal employees, informal employees and sexes P46 Total number of employees divided by regions and sexes P46 Whether work of the organization is mostly undertaken by legally self-employed employees, or by non-employed and informally-employed individuals (including contractor’s employees and informal employees) N/A Significant changes in the number of employed individuals (such as seasonal changes in numbers of employees engaged in tourism or agriculture) N/A G4-11 Percentage of the total number of employees included in collective bargaining agreement N/A G4-12 Describe supply chains of the organization P41 G4-13 Significant changes of organization size, structure, ownership or supply chain during the reporting period, including operation sites or business transformations, the start-up, closing and expansion of plants; changes in equity structure, constitution and retention of capital, and business changes (applicable to private sectors); changes in supplier locations, institutions of structure chain and relationships with suppliers (including selection and termination) N/A G4-14 Whether and how to act based on early warning guidelines and principles P35-37, P51 G4-15 Organization-involved or -supported economic, environmental and social conventions, principles and other initiatives launched by external organizations or individuals About the Report G4-16 For associations (trade associations) and national or international initiative organizations the organization serves as a member and holds a seat in their governance bodies, participates in any project or committee, and provides large amounts of financial supports in addition to paying membership dues, such membership shall be regarded of possessing strategic significance P12 and excellent global citizen and corporate citizen. Another highlight of the report lies in the plain language, which vividly demonstrates that, on one hand, AVIC protects national security, purses the dream of peace, and safeguards the economic development, and on the other hand, closely connected with people’s daily lives, it also vigorously promotes the development of civil industries and serves people’s livelihood by means of its advantages in aviation high-tech and aviation manufacturing systems. Generally speaking, the report is developed with comprehensive issues, detailed content and distinctive features. AVIC is expected to Deng Guosheng G4-10 Professor, Director of Innovation and Social Responsibility Research Center, School of Public Policy & Management, Tsinghua University Substantial aspects and boundaries identified All entities included in the listed organization’s consolidated financial statements or other equivalent documents P1 Describe whether there is any entity (included in consolidated financial statements or other equivalent documents) failing to include sustainable development report N/A Describe the process of defining boundaries for report contents and aspects Not Adopted Describe how the organization will apply the “Reporting Principles for Defining Report Contents” Not Adopted G4-19 List of all substantial aspects identified in the process of defining report contents Not Adopted G4-20 List of each substantial aspect with describe the boundary for internal aspects Not Adopted G4-21 List of all substantial aspects with describe the boundary of external aspects Not Adopted G4-22 Describe impacts by information contained in the reformulated previous report and reasons for such reformulation N/A G4-23 Describe significant changes in terms of scope and boundary of aspects and changes during the previous reporting period N/A G4-17 G4-18 Appendix 78 79 Disclosure standard of general information Category Content of indicator Disclosure standard of general information Reference location Category Content of indicator Reference location G4-51 Describe remuneration policy of the top governance body and executives Not Adopted Describe how the performance standard in remuneration policy associates with the economic, environmental and social objectives of top governance body and executives Not Adopted G4-52 Describe the remuneration determination process. Describe whether there is a remuneration consultant participating in the determination, and whether they are independent of management. Describe whether there is any other relationship between the compensation consultant and the organization. Not adopted G4-53 Describe how to consult and consider stakeholders’ view on compensation, including the remuneration policy and results of proposal voting, if applicable Not adopted G4-54 Each country in which the organization has important business operation, the ratio of highest paid individual annual total income and all the other employees’ (excluding the highest-paid person) total average annual income Not Adopted Each country in which the organization has important business operation, the ratio of highest paid individual annual total income growth and all the other employees’ (excluding the highest-paid person) total average annual income growth N/A G4-56 Describe value, principle, standard and codes of conduct, such as the rules of conduct and ethics P1 G4-57 Seek internal and external mechanisms of moral and legal behavior recommendations, and the things related to the integrity of the organization, such as a helpline or advice hotline P12, P42-45 G4-58 Internal and external mechanisms of reporting unethical or illegal behaviors, as well as the matters related to the integrity of the organization, such as reporting by the line manager step by step, reporting mechanism or hotline Not Adopted G4-EC1 Direct economic value generated and distributed by the organization P17 G4-EC2 Financial implications, risks and opportunities generated from the climate change on agency activities Not Adopted G4-EC3 The covering degree of organization fixed-income pension funds Not Adopted G4-EC4 Financial subsidies given by the government Not Adopted G4-EC5 Ratio of gender wage of starting salary and the local minimum wage in important operational places Not Adopted G4-EC6 Ratio of local executives hired by the organization in important operational places N/A G4-EC7 The condition and the impact of conducting infrastructure investment and support services Not Adopted G4-EC8 Significant indirect economic impacts, including the extent of impacts P20-33 G4-EC9 In important operational places, the proportion of procurement expenditure from local suppliers N/A G4-EN1 Weight or volume of used materials Not Adopted G4-EN2 Percentage of recyclable materials Not Adopted G4-EN3 Energy consumption within the organization Not Adopted G4-EN4 Energy consumption outside the organization Not Adopted G4-EN5 Energy intensity P52, P54 G4-EN6 Reduction of energy consumption P52, P54 G4-EN7 Reduction of the energy required in the products and services P52, P54 G4-EN8 Total water consumption explained by the source Not Adopted G4-EN9 Headwaters materially affected by water taking Not Adopted G4-EN10 The percentage and total amount of circulation and reuse water Not Adopted G4-EN11 The owned, leased or managed operating point of the organization in conservation areas or other areas of significant biodiversity value or adjacent areas N/A G4-EN12 In terms of organization activities, products and service in biodiversity, there is a significant impact in conservation areas or other areas of significant biodiversity value N/A G4-EN13 Protected or restored habitats N/A G4-EN141 According to the endangered risk level, describe the total number of species included in the International Union for Conservation of Nature (IUCN) Red List and national protection list whose habitat affected by the organization operation N/A G4-EN15 Direct greenhouse gas emissions (Category I) P52, P54 G4-EN16 Energy indirect greenhouse gas emissions (Category II) Not Adopted Involvement of related stakeholders G4-24 List of related stakeholders of the organization P12 G4-25 Describe identification and selection basis with regard to selected stakeholders P12 G4-26 How stakeholders are involved, including different types and groups of stakeholders and frequency of their involvement with describe whether there is any involvement for preparation of the Report P12 G4-27 Key topics and concerns proposed in the process of stakeholders’ involvement, how the organization responds, including report response. Describe groups of stakeholders that propose each topic and concern P12, P16 Report profile G4-28 Reporting period of information provided (such as fiscal year or calendar year) About the Report G4-29 Dates of previous reports (if any) About the Report G4-30 Reporting period (such as once a year, every two years) About the Report G4-31 About the Report or contact person of report contents About the Report, back cover G4-55 Integrity and ethics G4-31 G4-33 Describe “conforming” program selected by organization (core or comprehensive) About the Report Describe GRI content index for the selected program P72-77 Cite external verification reports if the Report has received any external verification. External verification is recommended by GRI but does not constitute the requirement to “conforming” the guideline P78 Policies and current practices the organization seeks external verifications for the Report P78 If not listed in the verification report contained in the Report, you need to specify the scope and basis of any external verification provided N/A Describe relations between the organization and verification service provider P78 Describe whether the top governance body or senior management involved in seeking verification for sustainable report Not Adopted Governance G4-34 The organization’s governance structure, including committees under the top governance body. Describe committees responsible for decision-making that many impose economic, environmental and social impacts G4-35 Describe the process the top governance body authorizes executives and other employees to manage economic, environmental and social issues P10, P16-P17 G4-36 Whether the organization has assigned administrative-level executives to be responsible for economic, environmental and social issues, and whether they report directly to the top governance body Not Adopted G4-37 Consultation process between stakeholders and the top governance body on economic, environmental and social issues. In case of authorized consultations, describe authorization objects and feedback process to the top governance body P16-P17 G4-38 Describe composition of the top governance body and its committees Not Adopted G4-39 Whether chairman of the top governance body serves as an executive officer concurrently (if any, describe his management functions in the organization and reasons for such assignment) Not Adopted G4-40 Nomination and selection process of the top governance body and its committees, and the conditions for nomination and selection of the top governance body members Not Adopted G4-41 The top governance body’s procedures to ensure avoid and control conflicts of interest, whether to disclose conflicts of interest to stakeholders Not Adopted G4-42 Roles of the top governance body and executives in terms of development, approval, renewal and purposes, values or missions, strategies, policies, and objectives in connection with economic, environmental and social impacts Not Adopted Measures taken to strengthen the top governance body’s collective understanding of economic, environmental and social topics Not Adopted G4-43 G4-44 Process of evaluating the performance of the top governance body managing economic, environmental and social issues. Whether such evaluation is carried out independently, and how about the frequency. Whether it is selfevaluation Not Adopted Not Adopted Economy Environment Measures taken for the performance evaluation of the top governance structure’s measures for management of economic, environmental and social issues shall include change in membership and organizational management at least Not Adopted Role of the top governance body in terms of identification and management of economic, environmental and social impacts, risks and opportunities. Including the role of the top governance body to implement due diligence Not Adopted Whether to use stakeholder’s consultations to support the top governance body’s identification and management of economic. Environmental and social impacts, risks and opportunities Not Adopted G4-46 Role of the top governance body in assessing rick management of economic, environmental and social issues Not Adopted G4-47 Frequency of the top governance body to assess economic, environmental and social risks and opportunities Not Adopted G4-48 Formal review and approval of the organization’s sustainable development report and make sure such report covers top committees or positions in all substantial aspects Not Adopted G4-49 Describe the process of communicating important concerns with the top governance body Not Adopted G4-EN17 Other indirect greenhouse gas emissions (Category III) Not Adopted G4-50 In terms of communicating important concerns with the top governance body, describe the properties and the total number, as well as the processing and settlement mechanism taken Not Adopted G4-EN18 Greenhouse gas emission intensity P52, P54 G4-45 Appendix 80 81 Disclosure standard of general information Disclosure standard of general information Category Content of indicator Reference location Content of indicator Reference location G4-EN19 Reduction of greenhouse gas emissions P52, P54 G4-EN20 Emissions of ozone-depleting substance (ODS) Not Adopted G4-EN21 Emissions of nitrogen oxides, sulfur oxides and other major gases P52, P54 G4-HR1 The total number and percentage of important investment agreements and contracts with clauses about human rights or under human rights review Not Adopted G4-EN22 The total amount of sewage water classified by the water quality and discharge destination Not Adopted G4-HR2 The total number of hours of employee training and percentage of such trained employees as per operation-related human rights policies and procedures G4-EN23 Total weight of waste classified by category and treatment Not Adopted Not Adopted G4-EN24 Total number and amount of serious leakage N/A G4-HR3 The total number of incidents of discrimination as well as corrective actions taken by the organization N/A G4-HR4 Identified operation site or supplier that may violate or seriously compromise the freedom of association and collective bargaining, as well as actions to support these rights G4-EN25 The transportation, input, output or processed weight of hazardous waste defined by the Appendix I, II, III, VII of Basel Convention, and percentage of hazardous waste shipped outside N/A N/A G4-HR5 Identified operation site and supplier that have serious risks of child-labor employment and measures to effectively eliminate employment of child labor G4-EN26 The water body seriously affected by the organization sewage and other (surface) runoff discharge, and the position, area, protection status and biodiversity values of related habitats N/A N/A G4-EN27 Reduce the degree of the environmental impact of products and services P52, P54 G4-HR6 Identified operation site and supplier that have serious risks of forced or compulsory labor events, as well as measures to contribute to the elimination of all forms of forced or compulsory labor N/A G4-EN28 G4-EN29 Percentage of recovery-based sold products and their packaging materials by categories descriptions Not Adopted G4-HR7 Percentage of security personnel trained in operation-related human rights policies and procedures Not Adopted Amount refined due to violations of environmental laws and regulations as well as frequency of non-financial penalties N/A G4-HR8 The total number of incidents involving violations of indigenous rights, and actions taken by the organization G4-EN30 N/A Significant environmental impacts caused by transportation of products, other goods and materials for operation of the organization Not Adopted G4-HR9 The total number and percentage of operation sites under receiving human rights review or impact assessment Not Adopted G4-EN31 Total environmental protection expenditures and investments by categories description P17 G4-HR10 The proportion of new suppliers selected by human rights standards Not Adopted G4-EN32 Proportion of new suppliers selected by environment standards Not Adopted G4-HR11 Significant actual and potential adverse impacts on human rights of supply chain, as well as measures taken Not Adopted G4-EN33 Significant actual and potential adverse impact on the environment of supply chain, as well as measures taken Not Adopted G4-HR12 Number of complaints in terms of human rights impacts that have been submitted, processed and resolved through formal mechanism Not Adopted G4-EN34 Number of complaints in terms of human rights impacts that have been submitted, processed and resolved through formal mechanism N/A Community G4-SO1 Ratio of operation sites that have implemented local community-involved impact assessment and development programs Not Adopted G4-SO2 Operational sites with significant actual and potential adverse impacts on the local community Not Adopted G4-SO3 Percentage and total number of operation sites that have conducted corruption risk assessment, as well as major risk identified Not Adopted G4-SO4 Communication and training of anti-corruption policies and procedures P43-44 G4-SO5 Identified incidents of corruption and actions taken N/A G4-SO61 Total amount of political donations by countries and recipients/beneficiaries Not Adopted G4-SO7 Anti-competitive behavior, anti-trust and monopoly practices and their outcomes total number of legal actions N/A G4-SO8 Amount refined by serious punishments due to violation of laws and regulations as well as frequency of non-financial penalties N/A G4-SO9 Proportion of new suppliers selected by social impact standards Not Adopted G4-SO10 Significant actual and potential adverse impacts on the society of supply chain, as well as measures taken Not Adopted G4-SO11 Number of complaints of social impacts that have been submitted, processed and resolved through formal mechanism N/A Labor practices and decent work Category Human rights G4-LA1 The proportion of the total number of new hires and employee turnover by age groups, sexes and regions P46 G4-LA2 Benefits available to full-time employees only, not to temporary or part-time employees by important operational sites N/A G4-LA3 The proportion of returning to work and holding the job after maternity/paternity leave, by sexes Not Adopted G4-LA4 Minimum notice period on re-operating changes, including whether description is specified in the collective agreement during the notice period N/A G4-LA5 The percentage of employees that can help with employee supervision and assessment of health and safety-related projects, from the Occupational Health and Safety Committee established by both the labor and the management Not Adopted G4-LA6 Categories of occupational injury, occupational injury, occupational diseases, proportion of lost labor and absenteeism, and the number of death in line of duty by regions and sexes P4 G4-LA7 Workers engaged in the positions with high occupational vocational diseases or highest occupational risks P46 G4-LA8 Health and safety issues in formal agreements with the labor union Not Adopted G4-LA9 Average number of hours of each employee receiving training per year by sexes and employee categories P46 G4-LA10 Skills management and lifelong learning programs to strengthen continued employability and assist employees to manage career termination Not Adopted Product responsibility G4-LA11 Percentage of employees receiving regular performance and career development appraisal by sexes and categories Not Adopted G4-PR1 The percentage of important product and service categories under health and safety assessment with the purpose of improving current situations Not Adopted G4-LA12 Composition of employees in the governance body and other employees by sexes, age groups, minority groups and other diverse indicators Not Adopted G4-PR2 N/A G4-LA13 Male and female ratio of basic salary and remuneration by employee categories and important operation sites N/A The total number of events violating laws and regulations as well as voluntary guidelines (within the life periods of products and services) in terms of product and service health and safety by categories description of consequences G4-LA14 The proportion of new suppliers selected in accordance with standard labor practices Not Adopted G4-PR3 Not Adopted G4-LA15 Significant actual and potential adverse impacts on the labor practices of the supply chain, as well as measures taken Not Adopted Information categories of products and services that are required to be with product and service information and identification by the organization and percentage of important products and services in line with such information requirements G4-LA16 Number of labor complaints that have been submitted, processed and resolved through the formal mechanism N/A G4-PR4 The total number of violating laws and regulations as well as voluntary guidelines in terms of product and service information and identification by categories description of consequences N/A G4-PR5 Results of customer satisfaction surveys P40-41 G4-PR6 Sales of sales-banned or disputed products N/A G4-PR7 Total number of incidents in violation of relevant marketing (including advertising, promotion and sponsorship) laws and regulations as well as voluntary guidelines by categories of consequence N/A G4-PR8 The total number of complaints that have justified breaches of customer privacy and losses of customer information N/A G4-PR9 If any violation of relevant laws and regulations in terms of provision of products and services, describe the total amount of significant fines concerned N/A Appendix 82 83 《中国航空工业集团公司 2014 年社会责任报告》评级报告 中国社会科学院经济学部企业社会责任研究中心(以下简称“中心”)受中国航空工业集团公司委托,从“中国企业社会责任报告评级专 家委员会”中抽选专家组成评级小组,对《中国航空工业集团公司 2014 年社会责任报告》(以下简称《报告》)进行评级。 一、评级依据 Social Responsibility Report Feedback (This page can be torn down to mail) Dear Readers: Thanks for reading the Report! To provide you with more subsequent valuable information on social responsibilities and promote sustainable improvement of the Report, please help us fill the following feedback form, and send to us by using one of the following ways (state Social Responsibility Report Feedback): 《中国企业社会责任报告编写指南(CASS-CSR 3.0)》暨《中国企业社会责任报告评级标准(2014)》。 二、评级过程 1. 过程性评估小组访谈中国航空工业集团公司社会责任相关部门成员; 2. 过程性评估小组现场审查中国航空工业集团公司社会责任报告编写过程相关资料; 3. 评级小组对社会责任报告的管理过程及《报告》的披露内容进行评价。 ★ E-mail: cvr@avic.com Social Responsibility of the Group, AVIC Building, No. 128 Jianguo Road, Chaoyang District, Beijing City, ☆ Mail: Mailing address: postcode: 100022 ☆ Tel or fax: Tel: 010-58356041 Fax: 010-58356979 三、评级结论 过程性(★★★★☆) 集团综合管理部社会责任处牵头成立报告编写组,高层领导参与编写推进及报告审定;编写组对利益相关方进行识别,并根据公司发展战 略、国家相关政策、行业对标分析及舆论热点等对实质性议题进行界定;拟定召开专项发布会,并将以印刷品、多语种版本、H5 版本等 形式呈现报告,具有领先的过程性表现。 实质性(★★★★★) 《报告》系统披露了“贯彻宏观政策”、“客户关系管理”、“产品质量管理”、“产品科技创新”、“职业健康安全管 理”、“安全生产”、 “环保技术和设备的研发与应用”等特种设备制造业关键性议题,叙述详细充分,具有卓越的实质性表现。 完整性(★★★★) 《报告》从“蓝天上的中航工业”、“我们身边的中航工业”、“安全优质的中航工业”、“律己担当的中航工业”、“绿色发展的中航 工业”等方面披露了特种设备制造业核心指标的 71.7%,完整性表现优秀。 平衡性(★★★☆) 《报告》披露了“安全生产事故数”、“员工流失率”、“职业病例数”等少量负面数据,平衡性有待提高。 可比性(★★★☆) 《报告》披露了“安全生产投入”、“民机出口收入”等 15 个关键绩效指标连续 3 年以上的历史数据,并就“财富企业 500 强排名”进 行横向比较,可比性需进一步加强。 可读性(★★★★★) 《报告》框架合理,语言生动,专题深入;使用丰富的图片、表格等表现形式,与文字叙述相辅相成,设计凸显行业特色,配色清新大气, 具有卓越的可读性表现。 创新性(★★★★★) 《报告》在篇末设置“走向世界的中航工业”及“大山里的读书声”专题,详细阐述了企业在海外及公益方面的履责情况,内容深入且生 动;多处以“延伸阅读”、“回响”、“链接”等方式展开叙述,便于相关方进一步了解,创新性表现卓越。 综合评级(★★★★☆) 经评级小组评价,《中国航空工业集团公司 2014 年社会责任报告》为四星半级,是一份领先的企业社会责任报告。 1. Your overall assessment on the Report (select and scoring) points (90-100) □ Relatively satisfied, □ Satisfied, points (60 to 69) □ Dissatisfied, □ Less satisfied, points (70-79) 2. Please scoring for AVIC’s fulfillment of social responsibilities in the following form Item Satisfied (90-100 points) Relatively satisfied (80-89 points) Generally satisfied (70-79 points) Less satisfied (60-69 points) Dissatisfied (0-59 points) Market responsibility (Responsibility for customers, shareholders, and partners) Social Responsibility (Responsibility for employees, government, and community) Environmental Responsibility (Environmental management, energy conservation, and pollution and emission reduction) 3. Do you think that the Report could display the main situation of AVIC to fulfill market responsibility, social responsibility, the responsibility □ good display, scoring (90 – 100 points) □ better display, scoring (80 – 89 points) □ general display, scoring (70-79 points) □ less satisfied, scoring (60-69 points) □ dissatisfied, scoring (0-59 points) 4. How do you think the performance report in the following aspects 四、改进建议 1. 增加企业历史关键数据的披露,提高报告的可比性。 2. 增加负面数据及负面事件分析的披露,提高报告的平衡性。 评级小组 组长:中国社科院经济学部企业社会责任研究中心主任 钟宏武 成员:中国企业公民委员会副会长 刘卫华 北京工商大学经济学院教授 郭毅 中心过程性评估员 王志敏、林旭 points (80-89) □ Generally satisfied, points (0 to 59) Item Satisfied (90-100 points) Relatively satisfied (80-89 points) Generally satisfied (70-79 points) Less satisfied (60-69 points) Dissatisfied (0-59 points) Topic selection Logic thread Case content Languages and words 评级专家委员会主席 中心常务副理事长 评级小组组长 中心主任 Layout design 5. What do you think you need to know the information that does not be reflected: . 出具时间:2015 年 6 月 29 日 6. What are your suggestions for our future preparation of the Report? . Appendix 7. Please select the best topic and content of the Report in your opinion (click”√” in the corresponding position, one optional only) Topics and content catalog I. AVIC in Blue Sky Page Vote for best topic and content 18 – (I) Eagle Soaring in Sky, Cruise for Peace 19 (II) Pigeon Singing in Blue Sky, Add Wing for the Development 21 II. AVIC around Us 24 (I) Be with Each Other’s Neighbor, Anyone Knows You 26 (II) Not in the Cloud, But in Your Life 30 III. AVIC with Safety First 34 (I) AVIC in pursuit of safety 35 (II) AVIC manufacturing with Reliable Quality 38 IV. Self-discipline and Responsible AVIC 42 (I) Self-Discipline, Law-Abiding, Innovative and Aggressive 43 (II) Care for Employees and Return to Society 46 V. AVIC with Green Development 50 (I) Construction of environmental management system 51 (II) Development of Low-Carbon Eco-Industries 52 (III) Carry Out Energy Conservation Actions 54 VI AVIC Going Global (Special Topics) 56 (I) AVIC Abroad 57 (II) The Philosophy – Localization 60 (III) Sincere and Friendly Global Citizens 62 VII. Reading sounds in Mountains (Special Topics) 66 (I) The “Blue Chalk” of teacher recruitment and supporting education 67 (II) Sponsorship and Assistance -”Parents’ Love” 68 Description – – – – – – 8. Which channels do you access to get and read the Report? □ Downloaded from AVIC website □ Receive a paper version □ Forwarding in your Circle of Friends (please specify appropriately) □ Others 9. Relationship between you and AVIC can be defined as which one of the following: □ Internal employee □ Customer □ Supplier □ Central or local government □ Community organizations □ Investor (please specify appropriately) □ Creditor □ Investment partner □ Social public □ Other status 10. Please fill in the following information and we will give full consideration to your comments and suggestions; we will thank you and respond in an appropriate manner, and promise to protect your information properly from being accessible to third parties: Name: Phone: E-mail: Mailing address: Thanks again for your help! Developed by CSR Department, Aviation Industry Corporation of China June 2015 About the Report The Report is the fifth CSR report released by Aviation Industry Corporation of China. For ease of presentation and reading, “Aviation Industry Corporation of China” may also be expressed by “AVIC” “the Corporation” and “we/us”. Organizational Scope of the Report The Report covers the headquarters and all units affiliated to Aviation Industry Corporation of China. Time Scope of the Report January 1 – December 31, 2014. Taking into account the continuity and comparability of information disclosure, part of the information may be extended appropriately prior to or after the Scope of Time. Reporting Period The Report is an annual report. The last report was released on December 5, 2014. Reference Guidelines for Preparation of the Report The Report is developed in accordance with relevant requirements of Guidelines on the Central Enterprises’ Fulfillment of Corporate Social Responsibility and “Twelfth Five-Year Plan” Harmonious Development Strategy Outline for Central Enterprises released by State-owned Assets Supervision and Administration Commission, with reference to Sustainability Reporting Guidelines (Version G4.0) released by Global Reporting Initiative (GRI), ISO26000 Guidance on Social Responsibility and Corporate Social Responsibility Reporting Guidelines for Chinese Enterprises (CASS-CSR3.0) released by International Standard Organization, and combined with actual situations of Aviation Industry Corporation of China. Language Version The Report is released in both English and Chinese versions, and the Chinese version shall prevail in case of any discrepancies. Release Form of the Report The Report is provided paper and electronic forms. Please visit our web site (www.avic.com.cn/) to download the electronic version. For the paper version of the Report, please send an e-mail to csr@avic.com or call 8610-58356041 for obtaining. Wechat lovers can scan the Wechat number to follow AVIC, where you may download a HTML5-format Simplified Report and keep abreast of our fulfillment of responsibilities.. Official Wechat of AVIC 84 85