Social Responsibility Report 2014 · and the national economy lifelines, AVIC is an important part of the national strategic industry and the national innovation system. Our mission

This report is prepared in green environmental hard copy and electronic copy

Address: AVIC Plaza, No.128, Jianguo Road, Chaoyang District, Beijing City

Postcode: 100022

Tel.: 010-58356041

Fax: 010-58356979

E-mail: [email protected]

Wechat: AVIC-2008

Micro-blog: AVIC mic

Wechat: AVIC-2008

AVIC official wechat

AVIC official websitehttp://www.avic.com.cn/

AVIC official micro-bloghttp://weibo.com/u/3061210763

Aviation Industry C

orporation of China

Social R

esponsibility Report 2014

with us

Social Responsibility Report 2014

Social Responsibility Report 2014

AVIC

Together with the motherland

Together with the world

Together with us

……

About Us 04

AVIC Ecological Map 06

Speech of Chairman 08

Speech of General 09

Manager

Implementation and 10

Management of

Responsibility

Content

AVIC in the Blue Sky Self-disciplined and Responsible AVIC

AVIC around Us Green development of the AVIC

AVIC with Safety First AVIC moving toward the world

(special topic)

The sound of reading in the mountains (special topic)

18 4426 5236 58 68

Retrospect and Prospect 74

Appendix 76

About the Report 85

Eagles soar in the cloud, cruising for peace

19

Doves flutter in the sky, spreading wings for

development21

People know you well around the world as a neighborhood

28

It lies in the life instead up in the clouds

32

AVIC in pursuit of safety37

AVIC manufacture focusing on quality

40

Law-abiding and self-disciplined, innovative and

progressive45

Care for employee, pay back the society

48

Construction of environmental management system

53

Development of low-carbon ecological industry

54

Carry out energy conservation and consumption reduction

action56

AVIC over the seas59

Localized business philosophy62

To be a friendly and sincere international citizen

64

“Blue Chalk” of the teacher recruitment and supporting

education69

Sponsorship and Assistance – “Parents’ Love”

70

0504About Us

Aviation Industry Corporation of China (referred

to as “AVIC”) is an aviation-oriented corporation,

who can provide complete services to customers

in many fields – from research and development

to operation, manufacturing and financing. Its

predecessor was founded in 1951 and the Aviation

Industry Corporation of China (AVIC) was founded

on November 6, 2008 through the restructuring

and consolidation of the China Aviation Industry

Corporation I (AVIC I) and the China Aviation Industry

Corporation II (AVIC II). The headquarter of the

corporation is located in Beijing, where we have

segments of aviation equipment, transport aircraft,

engines, helicopter, avionics and systems, general

aircraft, research and development, flight testing,

trade and logistics, assets management, engineering

and construction, automobiles and more. We have

over 200 subsidiaries, 29 listed companies, and

about 550, 000 employees. In 2014, AVIC ranked

178th among the Fortune Top 500 enterprises for the

sixth time.

In addition to the research and development of

advanced aviation weapon equipment, AVIC is

committed to developing civil transport industry,

actively is engaged in the development of major

international aviation projects, and vigorously

develops the aviation subcontract businesses.

In respect of non-aviation industry, AVIC has

integrated high-end aviation science and technology

in to mechanica l equ ipment , spare par ts o f

automobiles, new energy vehicles and other fields.

We have vigorously developed products, such

as gas turbine, electrical devices, refrigeration

equipment, environmental protection equipment,

new energy equipment. Meanwhile, we provide

various services, including general aviation, aircraft

leasing, transportation, medical service, planning and

construction and etc.

AVIC owns subsidiaries (branches) distributed

in more than 30 provinces and cities, and 182

overseas agencies, offering products and service

for both military and civil fields for the customers in

China, as well as in over 180 countries and regions

of Asia Pacific, Europe and the United States, and

Africa. Since our establishment in 2008, we have

continuously achieved double-digit annual growth.

AVIC, always promise to “serve our country with

aviation, build a strong army and enrich people”, fulfill

the idea of “respect and honesty to work, innovation

and surpass”, and have proposed a development

strategy of “Two integrations, three innovations, five

upgrades and one Trillion”. “Two integrations” means

that we need get rid of the old conservative thinking,

instead, form a new idea of opening and cooperation

so as to achieve integration into both the global

aviation industry chain and regional development

economic circles; “Three innovations” refers to the

Group’s core competitiveness. We are committed

to transforming and upgrading the Group’s core

competitiveness, moving from “the traditional triad

of capital, technology, and management” to the

new trinity of “brand value, business model, and

integrated networking”; “Five upgrades” means

that we vigorously promote market-oriented reform,

industry sector consolidation, capitalized operations,

international exploitation, and industrial development.

In the end, we strive for a challenging sales target of

RMB one trillion.

0504

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

Aviation Industry Corporation of China

Non-aero Business Department

Civil Aircraft Projects Department

Engine Project Department

Department of Retired Employee

General Administration Department

Strategy and Capital Management Department

Finance & Planning Department

Human Resources Department

Defense Engineering Department

Department of Science, Technology and Informatization

Department of International Affairs

Quality & Safety Management Department

Policy and Legal Affairs Department

Party-building and Ideological and Political Department

Audit Department

Disciplinary Inspection and Supervision Department

AVIC Aeronautic Equipment Co., Ltd.

AVIC Aircraft Co., Ltd.

AVIC Engine Co., Ltd.

AVIC Copter Co., Ltd.

China Avionics Systems Co., Ltd.

AVIC Electromechanical Systems Co., Ltd.

China Aviation Industry General Aircraft Co., Ltd.

AVIC Asset Management Co., Ltd.

AVIC Economy Establishment

Chinese Flight Test Establishment

AVIC Capital Co., Ltd.

AVIC Automobile Industry Holding Co., Ltd.

China National Aero-technology International Holding Corporation

AVIC Technology Foundation Establishment

Joy Air Holding Co., Ltd.

AVIC Heavy Machinery Co., Ltd.

China Aviation Planning and Construction Development Co., Ltd.

AVIC Commercial Aircraft Engine Co., Ltd.

China National Aero-Technology Import & Export Corporation

About Us

三六一医院

天虹

0706AVIC Ecological Map

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 ZuomingJune, 2015

09Speech of General Manager 08

AVIC continued to seek for peaceful development, guarantee national defense security and pay attention to national economy and the people’s livelihood in the past year, and made great contributions to safeguarding national security, stimulating economic development, and promoting the progress of science and technology.

In 2014, AVIC made full strength to promote reform, conducted various kinds of task deeply, and carried out the “year of reform and management” activity in a deep-going way, each work obtained new achievements. In the circumstances of facing growing downward pressure of economy, AVIC achieved a contrarian growth. Our annual business income is RMB386.38 billion yuan, with year-on-year growth of 11%. Moreover, we ranked 178th among the Fortune Top 500 enterprises, moving up 34th compared to that in the last year, with a 90.5-billion-Yuan brand value breakthrough, ranking 25th in the whole country.

As a company driven by aviation, AVIC offers the whole value chain services in many fields. In 2014, more than 150 products of AVIC appeared in public at Zhuhai Airshow, which was a milestone of the development of Chinese civil aviation industry and had changed the world’s attitude to Chinese aviation manufacturing. Meanwhile, we had seized the opportunity of revolution on values. Through the development of creative economy, we had achieved the “spillover effect” in the aviation industry, promoting the upgrade and growth of non-aeronautical civil industries and modern service industry.

AVIC has made more efforts to carry out the innovation-oriented strategy, acquiring new accomplishments in technological innovation. In 2014, we had acquired 4 National Science & Technology Awards and 86 National Defense Science & Technology Awards. We had applied for 6970 patents. AVIC had constructed the innovation system step by step and built 39 key laboratories of aviation technology. We had promoted the combination of informationization and industrialization in depth and integrated the internal IT infrastructure. We had established an Experience Innovation Center of a deep integration between informationization and industrialization and an R&D base of the industrial software of the deep integration.

AVIC has taken the initiative to execute the conception of low carbon and healthy development. Taking the resource conservation and the increase of efficiency in utilizing resources as the core, we have strengthened the management of energy saving and emission reduction. We have strived to make mutual benefits for interested parties with the innovation system and mechanism.

AVIC has recruited a large number of talents, providing many job opportunities to the society. AVIC attracts more than 500,000 people around the world. The number of the newly recruited university students is more than 12,000 annually even just in China. AVIC has always regarding the overall management of the employee as the way of enterprise development. In AVIC, technical and managerial talents who have outstanding performance will get the chance to study and get further education overseas. Every year, AVIC funds excellent employees to study for a degree or accept further education in foreign reputable universities. Those returned doctors, masters and exchange scholars are becoming the backbone of AVIC.

AVIC seeks to deepen reform unswervingly. We focus on carrying forward the spirit of entrepreneur, carrying out reformation in a complete and thorough way. As a result, we will seek for the “new bonus” of this deepen reform. With the continuous development of AVIC, we should and will pay more attention to maintaining employee interests, undertake public utilities actively, and participate in social management. Besides, we will save energy and reduce consumption, protect the environment, be a public-spirited enterprise who would support the distressed people, and devote ourselves to the social development.

Tan RuisongJune, 2015

1110Implementation and Management of Responsibility

Model of Concept of Social Responsibility

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

“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.

Our Governance

Management Organization of Social Responsibility

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 full-

time and part time employees of social responsibility,

coordinated by the Group headquarters.

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 Environ-ment Management System

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.

Pursuit of theideal of peacePursuit of theideal of peace

Integrated military andcivilian development

Integrated military andcivilian development

Quality and safetyas the root

Quality and safetyas the root

Adherence toindependentinnovation

Adherence toindependentinnovation

Practice of low-carbonenvironmental

philosophy

Practice of low-carbonenvironmental

philosophy

Dedication togrow togetherDedication togrow together

Corporate governance

Managementpromoted byresponsibility

Responsibilityculture

Stakeholderengagement

Comprehensive riskmanagement

Take heart as wing to fly

with dream

Take heart as wing to fly

with dream

Strategy and

Investment

Committee

Nominating andCorporate

GovernanceCommittee

Remuneration

and Appraisal

Committee

General Manager of the Group

Comprehensive Management

Department of the Group

Management office of social

responsibility of each listed company

Management office of social

responsibility of each member unit

Board of Directors

of the Group

Audit and Risk

Management

Committee

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

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

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

Three major systems of energy conservation and emissions reduction


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.

Interested Party and Communication Mechanism

Communication of Interested PartyInterested 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

PartnersStrictly 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 (non-governmental 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

Cases of Communication ActivitiesMainly Participant Associations and Organizations

Name Association office-holding

China Federation of Industrial Economics Presidium unitChina Association of Enterprises, China Entrepreneur Association

Vice-president unit

China Association of Management of Military Enterprises

Vice-president unit

China Association of Peaceful User of Military Industrial Technology

Vice-director unit

Society of Management of China Director unitChina Association of Chief Financial Officers

Vice-president unit

Accounting Society of China Vice-president unitChina Human Resource Development Association

Vice-president unit

China Association for Quality Vice-director unitSino-Italy Commission on Entrepreneurship

Director unit

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

Leader Supporting

On October 8, Lin Zuoming and Jean-Paul HERTEMAN, Chairman and CEO of Safran (France) took part in the interview of People’s Dai ly Onl ine, and spoke glowingly of Sino-French aerospace power cooperation

Online Interaction

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

Visit to Africa

On February 13th, LI Fangyong, Deputy General Manager of AVIC met with FOLEY, CEO of Airbus Helicopter

European Partners

Recreational Performance

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

Participation in Charity Fair

In September, AVIC, who brought a project with “Colorful Aviation People” as the theme, appeared in the Third Session of China Charity Fair

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

Scientific Popularization of Aviation

On January 15, Xu Fushun, Deputy Director of the State-owned Assets Supervision and Administrat ion Commission, and Gao Jianshe, Deputy General Manager of AVIC expressed sympathy and solicitude for academician GUAN Qiao, the national model worker

Express Sympathy and Solicitude for Model Workers

On December 25, AV IC and Da l ian University of Technology signed a strategic cooperation agreement in Beijing

Coalition of college and enterprise

In October, volunteers from AVIC Guiyang Aircraft went to Ziyun Houchang Primary School to visit sponsor students

Voluntary Action

The activity of law popularization for the public on “12.4” National Constitution Day was carried out in AVIC Changhe Aircraft

Law Popularization for the Public

In November, L in Zuoming met wi th POGOSYAN, General Manager of Russian OAK. The two parties signed the minutes of meeting for cooperation matters in various fields

Enterprise Cooperation


Social Assessment

Social Assessment of AVIC in 2014

SerialNumber

Date Content Awarding Body

1 January 2014Three achievements of AVIC respectively won the first and second prizes of National Award for Science and Technology Progress

The State Council

2 April 2014Three achievements of AVIC South Aviation Industry Co., Ltd. won “2013 Quality Technology Excellence Award of China Association for Quality”

China Association for Quality

3 April 2014AVIC won the f irst prize of Research Achievement of Organization Department of the CPC Central Committee

Organization Department of the CPC Central Committee

4 April 2014 30 persons from AVIC won the tile of National Technical ExpertThe Ministry of Human Resources and Social Security

5 April 201416 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 2014AVIC was elected as the member unit of “Sino-Ital ian Entrepreneurs’ Committee”

Sino-Italian Entrepreneurs’ Committee

7 July 2014AVIC 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 2014AVIC 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 2014Four 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 2014AviChina Industry & Technology Company Limited won Corporate Governance Asia Excellence Award

Corporate Governance Asia

11 November 2014Two 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)

12 December 2014AVIC 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

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”.

AVIC won Bashu Charity Award in May

SerialNumber

Date Content Awarding Body

13 December 2014AVIC 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

14 December 2014AVIC 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

15 December 2014Lin Zuoming won Top 10 People in the News from Stated-owned Enterprises

The Enterprise Observer

16 March 2015AVIC was elected as one of 2014 Top 10 Chinese Domestic Enterprises on Innovation

Scientif ic American (Chinese version), a famous American science & technology magazine


Origin of the Issues

Based on group strategy, management and control

of current situation as well as concerns of each

stakeholder, AVIC determined the annual report

issues on the basis of reference to domestic and

international standards on social responsibility, at

the same time, in accordance with national policy

requirements, hotspots of current affairs and public

opinion, focus of investors, top 500 companies at

home and abroad as well as report issues on aviation

manufacturer’s social responsibility as a supplement.

Communication of the Issues

AVIC attaches great importance to the management

work on social responsibility, and shows its actions

on social responsibility through the measures, such

as regular release of reports on social responsibility

and participation in related activities on social

responsibil ity. In addition, AVIC integrates the

management work on social responsibility into the

news propaganda, enterprise culture and other works

of the Group to improve the public’s awareness in

AVIC and its social responsibility fulfillment situation

through the external medias, such as Xinhua News

Agency, People’s Daily, CCTV, China National Radio,

etc. and We-medias, such as China Aviation News,

Air Express, official websites, micro-blog, WeChat,

etc.

Identification of the Issues of Social 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

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.

Key Performance of Responsibility

Figure of Ranking Change among top 500

Economic performance index Safety and quality index

Taxpaying and employee training Energy saving and environmental protection index

3863.8

3495.4

3008.9

2012

2012

2012

2012

2013

2013

2013

2013 2014 2014 2014

2014

2014

2014

2014 2013 2013 2013

171.92

145.88

126.32

143.3143.6

109.27111.43

131

493 5.6

3

11.9

8

131.3

101.26

2012 2013 2014

3.213.263.25

2013 2014

89.1

75.2

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.

2009 2010 2011 2012 2013 2014

No.426

No.330No.310

No.250

No.212

No.178

Idea of responsibility

Governance mechanism

Interested parties

Collection of report issues

Market responsibility

Main business of aero-manufacturing

Development of non-aviation industry

Safety production

Quality management

Special topic on poverty reduction

and assist of impoverished students

Special topic on oversea operation

Implement the action of energy saving and consumption reduction

Develop low carbon ecological industries

Establish environmental management system

Self-discipline, observance of law, innovation and progress

Care and love the employee, pay back the society

Deal with emergencies and disasters and provide relief,

poverty reduction and assist the impoverished students

Responsibility

managem

ent

Environmental

responsibilityS

ocialresponsibility

Income (108 Yuan) Profit (108 Yuan) Invested money for safetyproduction (108 Yuan)

Covering-ratio of standardhitting units under AVIC

quality management system (%)

Amount of taxpaying (108 Yuan)

Total person-timeof employee training(104 person-time)

The implementation of technical innovation projects for energy conservation and emissions reduction (number)

Invested money for technicalinnovation of energy conservationand emissions reduction (108 Yuan)

Degree of reduction ofCOD’s emission (%)

1918

(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

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

mult i -purpose heavy mi l i tary

t r a n s p o r t a t i o n a i r c r a f t

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 f i r s t

displayed in the air show and

performed flight demonstrations.

In the 2014 Zhuhai Air Show, F-10

performed flight demonstrations.

F - 1 0 i s a t h i rd - g e n e r a t i o n

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 theBlue SkyEagles soar in the cloud, cruising for peace 19

Doves f lut ter in the sky, spreading wings for development 21

2120AVIC in the Blue Sky

2. Maintain and Create Our Environment, Pursue the Dream of Peace

From the early days of building the nation to new century, the aviation equipment provided by AVIC offers a reliable protection for national

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.

Z-8 escorting the Gulf of Aden

The two Z-8 jets of certain type manufactured by AVIC Changhe

Aircraft performed the mission of escorting the Gulf of Aden in the

company of a particular team in marine force. In light of Chang

Fei’s safety maintenance against crew and under meticulous

maintenance by a particular unit, the Z-8 jets of certain type

completed the escorting mission in a safe and successful way.

Since 26 December 2008 to late 2014, Z-8 and Z-9 manufactured

by AVIC have performed nearly 20 missions of escorting the Gulf of

Aden with outstanding achievements.

(II) Doves flutter in the sky, spreading wings for development

1. Commit in Peacebuilding, Sustain Economic Development

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

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

and rescue, medical care, emergency rescue, police and law enforcement. 2014 is a fruitful year for AVIC with

respect to its research and manufacturing in civil aircraft projects, achieving “Four pioneer take off” (MA60

artificial rain machine, Vision SF50 light business jet, Leadair AG300 independently-owned business jet,

AC311A light helicopter), “One issued with production permit” (AC312 twin-engine multi-purpose helicopter),

“Three with qualified assessment” (AG600 large firefight/water rescue amphibious aircraft, Y-12F multi-purpose

transportation aircraft, AC312), “Four approved” (AC311A helicopter, AC3X2 light twin-engine civil helicopter,

AC313A heavy helicopter, JL-4A/1 propeller aircraft).

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

administrative affairs and commercial activities,

also known as administrative or commercial

aircraft. The project of China’s Leadair AG300

independently-owned business jet was kicked

off in June 2011, and has attempted first flight

successfully on 5 July 2014.

AG600 a i rc ra f t i s a l a rge f i re f igh t /wate r

rescue amphibious aircraft designed and self-

manufactured by China. This aircraft is equipped

with functions designated for various special

tasks, such as emergency rescue, forest firefight

and marine patrol. In 2014, we received indicative

orders for two such aircrafts.

2014 is a fruitful year for AVIC with respect to its research and m a n u f a c t u r i n g i n civil aircraft projects, a c h i e v i n g “ F o u r pioneer take off”

Four pioneer take off

In 2014, “Modern Ark” 60/600 aircraft received 88

new orders, which has accumulated the delivery

of the 100th aircraft. MA60-series aircraft is

currently operated by 28 operators for almost 260

air routes across 18 countries and regions, with

cumulative flight hours and landing times nearly

doubled 300,000.



2. Popularize Aviation Knowledge, Propel the Development in General Aviation

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”.

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.

AVIC lub exper ienced rap id deve lopment 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

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 Shij iazhuang. Shenzhen AVIC has init iated 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.

Zhong Hang Tong Hang developed general aviation business in Hulun Buir

“Under the boundless sky, on vast plains, cows and sheep can be seen when the wind blows and grass lowers…try to fly from Hailar to Manzhouli on a sunny day, overlooking the grasslands of Inner Mongolian for only RMB300, discounted to RMB90 when necessary.” This is not an exaggerated advertisement but a physical activity of AVIC in the general aviation sector. AVIC Tongfei North China Company together with Inner Mongolia Hulun Buir League have established China’s first general aviation short-haul 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”.

Glamour at the Zhuhai Air Show

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 line-

up 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.

2726

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

distributed almost all provinces, municipalities directly under the Central Government and autonomous regions

and AVIC people are found in Asia, Africa, America and Europe.

When you travel in the mountains and see drones executing the tasks of farmland and woodland spraying,

power line inspection as well as aerial survey and aerial photograph, can you think of that they might be new

civil products of AVIC?

When you frown in the face of urban haze, do you know that UAV platform for dispersal of haze has been

successfully developed by AVIC?

When you are attracted by the big screens on urban squares, do you know these screens are mostly from

AVIC Shenzhen Tianma Microelectronics Company?

When you go shopping with your credit-card, can you image that the chip in it is a product of AVIC Shennan

Circuit Limited Company?

When you visit the Forbidden City and Great Hall of the People with your relatives and friends, you may not

think of that AVIC Dabei Property Management Ltd. is at your service anytime and anywhere.

When you and your family go shopping and enjoy a diversion in Rainbow Department Store, you may not

know that the high quality services provided by Rainbow Department Store is the result of AVIC’s high quality.

When you are wearing Fiyta watch, do you know this brand also belongs to AVIC?

When you invest money into the stock market, you may accidentally become the shareholder of any of 29 listed

companies under the governance of AVIC.

It is predicted that El Nino phenomenon will come in 2015. When you worry about the crops to be affected, do

you know that Groupama AVIC Property Insurance’s agricultural insurance products can help you with

your problems?

Besides, there are hospitals of AVIC, AVIC Automobile Industry, AVIC Trade, Civil Aviation University Of

China, AVIClub, iyouke.com, itronk.com and others spreading all over the country.

That’s it. AVIC is all around us, and we are together.

AVICaround UsPeople know you wel l around the world as a neighborhood 28

It lies in the life instead up in the clouds 32

2928AVIC around Us

(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

3130AVIC around Us

3. List of Listed Companies and Index Diagram of AVIC

Serial No. Listed company Abbreviation Code

Listing location

Serial No. Listed company Abbreviation Code

Listing location

1Hafei Aviation Industry

Co., Ltd.HAI 600038.SH Shanghai 16

AVIC Electro-mechanical

System Co., Ltd.

AVIC Electro-

mechanical002013.SZ Shenzhen

2Jiangxi Hongdu Aviation

Industry Co., LtdHongdu Aviation 600316.SH Shanghai 17

Sichuang Chengfei Jicheng

Science & Technology

Innovation Co., Ltd.

Chengfei Jicheng 002190.SZ Shenzhen

3China AVIC Electronics

Co., LtdAVIC Electronics 600372.SH Shanghai 18

AVIC Photo-electricity


Innovation Co., Ltd.

AVIC Photo-

electricity002179.SZ Shenzhen

4

Sishuan Chengfa Aero


Co., Ltd.

Chengfa Science

& Technology600391.SH Shanghai 19 AVIC Sanxin Co., Ltd. AVIC Sanxin 002163.SZ Shenzhen

5Guizhou Guihang Automotive

Components Co., Ltd.GACO 600523.SH Shanghai 20

Rainbow Department Store

Co., Ltd.

Rainbow

Department Store002419.SZ Shenzhen

6AVIC Capital Holdings

LimitedAVIC Capital 600705.SH Shanghai 21

AVIC Electrical Measuring

Instrument Co., Ltd.ZEMIC 300114.SZ Shenzhen

7 AVIC Hebao Auto Co., Ltd AVIC Hebao 600760.SH Shanghai 22AVIC International Holdings

Limited

AVIC International

Holdings0161.HK Hong Kong

8AVIC Heavy Machinery

Co., Ltd.

AVIC Heavy

Machinery600765.SH Shanghai 23

AVIC International Holdings

(HK) LimitedAVIC International 0232.HK Hong Kong

9 AVIC Power Co., Ltd. AVIC Power 600893.SH Shanghai 24Happiness Holdings

(HK) Ltd.

Happiness

Holdings0260.HK Hong Kong

10

Baosheng Science &

Technology Innovation

Co., Ltd.

BSTI 600973.SH Shanghai 25

AviChina Industry &

Technology Company

Limited

AviChina 2357.HK Hong Kong

11 AVIC Real Estate Co., Ltd. AVIC Real Estate 000043.SZ Shenzhen 28Nexteer Automotive

System Group LimitedNexteer 1316.HK Hong Kong

12Shenzhen Fiyta (Group)

Co., Ltd.Fiyta A 000026.SZ Shenzhen 26

AVIC International Ship

Holdings LimitedAVIC Ship O2l.Sl Singapore

13Shenzhen Tianma

Microelectronics Co., Ltd.

Shenzhen

Tianma A000050.SZ Shenzhen 27

KHD Humbo Idt Wedag

International AGKWG: GR Frankfurt

14AVIC Power Control

Co., Ltd.

AVIC Power

Control000738.SZ Shenzhen 29 FACC AG AT0000FACC2 Vienna

15 AVIC Aircraft Co., Ltd. AVIC Aircraft 000768.SZ Shenzhen

Indicator Unit 2012 2013 2014

Asset and capital securitization rates % 52% 54% 59%

The market value of its listed companies RMB One hundred Million 1,796.6 2,723.8 4,641.7

The number of its listed companies Company 26 28 29

Cumulative dividends of listed companies RMB One hundred Million 18.13 15.69 25.28

-20%

-10%

0%

10%

20%

30%

40%

50%

60%

70%

80%

2014, AVIC index rose up to more than 70%, exceeding the market.

DecNovOctSepAugJulJuneMayAprMarFebJan

AVIC (898001)

Shanghai Composite Index (000001)

3332AVIC around Us

(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

means of the advantages in aviation high-techs and

aerospace manufacturing system.

1. AVIC is in your life

AVIC-involved civilian industrial fields

MotorcycleHigh-end consumer

goods and retailing

AutomobileGeneral aviation

services

Mechanical equipment Logistics

Energy equipment Air freight

Refrigeration

equipment

Medicine and

healthcare

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

The AVIC smart electric

m e t e r m o u n t e d t o

t he doo r rem inded

m e o f r u n n i n g o u t

electricity after I arrived

home, so I purchased

additional quantity of

electricity online with

my electricity-purchase

c a r d . O p e n e d t h e

h o m e c a re o x y g e n

generator produced

by AV IC J i anghang

Medical Equipment to

ensure indoor air fresh.

The doo rbe l l r ang ,

Rainbow Department

S to re de l i ve red my

orders, as well as in

the re f ined o l ive o i l

p ro d u c e d b y AV I C

(Tieling) Pharmaceutical.

After dinner, I checked

AVIC Wechat and China

Av ia t ion News w i th

my mobile phone, set

the FIYTA alarm clock,

a n d w e n t t o s l e e p

peacefully.

In the morning, I was

aroused by time service

of the FIYTA watch.

A f t e r o p e n i n g t h e

new refr igerator and

a hurr ied breakfast,

I d r o v e m y n e w l y

brought new-energy

car to my office. There

was a traffic jam when

I passed AV IC 361

Hospital, so I simply

turned to AVIC Property

Management’s Urban

Green Conven ience

Car Wash Self-Service

Station, not far away,

for a car wash.

When I a r r i v ed t he

o f f i c e , e m p l o y e e s

o f AV I C H u i l i w e re

designing photovoltaic

(PV ) sys tems us ing

ro o f t o p re s o u rc e s .

They said that, the first

325 KW d is t r ibuted

PV power generation

demonstration project

o f AV IC Hebe i An j i

Hongye Machinery Co.,

Ltd. in Botou City, Hebei

Prov ince, had been

connected to the grid

since March 13, 2014,

wh ich was the f i r s t

demonstration project

connected to the grid

of AVIC; and on March

19, Spriggs Farm, a

terrestr ia l PV power

station project in UK

of AVIC International,

was completely and

successfully connected

to the grid.

A t n o o n , w e w e n t

t o A V I C H o t e l ’ s

u n d e r g r o u n d s t a f f

c a n t e e n f o r l u n c h ,

see ing tha t severa l

s tocks of AVIC had

limited up. According

to colleagues of AVIC

Secur i t ies, that was

because that day the

subsidiary, FACC AG,

of AVIC was officially

l i s t e d o v e r s e a s i n

Austria and raised funds

o f RMB1.81 B i l l i on

(approximately EUR 213

Million).

In the afternoon, my

ema i l box rece i ved

A V I C J o y A i r ’ s

promotional information

f o r ce l eb ra t i ng t he

f i f t h ann i ve rsa ry o f

f o r m a l o p e r a t i o n ,

which recommended

me to take part in the

travelling route – “a tour

of famous mountains

and great waters with

aircraft manufacturing”

– prov ided by AVIC

International Travel.

After a day’s work, I

chose the shuffle bus for

fear of traffic jams. The

shuttle bus is a Silver

900 independent ly -

deve loped by AV IC

and Xi’an Si lver Bus

affiliated to Volvo Joint

Venture. I t fe l t very

good to sit in the bus.

On my way, I brought

some f resh food a t

“Rainbow Department

Store Online”. Rainbow

Department Store is the

f irst ISO22000 Food

Safety Management

S y s t e m c e r t i f i e d

enterprise in China’s

retail sector.

June 7, Rainbow’s first mall-centered community-type

department store was opened

3534AVIC around Us

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.

(1) Joy Air’s 5th anniversary of official operation, number of passengers reaches one million

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 China-

made civil aircrafts have carried 1 million passengers.

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.

The number of one million passengers is a milestone. Air Joy, holding the China Dream of “self-

improvement of China’s civil aircrafts”, is ready to meet the new future with confidence.

(2) Groupama AVIC Insurance’s Rapid Response to “11.22” Kangding Earthquake

In November 22, a 6.3 earthquake occurred in

Kangding County, Ganzi T ibetan Autonomous

Prefecture, Sichuan Province. A total of 3,261 people

in Ganzi Prefecture are policyholders of personal

accident insurance in Groupama AVIC Property

Insurance Co., Ltd. (referred to as “Groupama

AVIC”), there is a total of 280 thousand mu of

farmlands and 87 million mu of forests insuring

agriculture and forestry insurance. Within 30 minutes

since occurrence of the earthquake, Groupama

AVIC immediately initiated an emergency plan,

prepared RMB20 million as excess reserve, opened

green channel of claims, and contacted with the

clients forwardly for fast payments. Meanwhile, the

Company donated RMB1 million used for earthquake

relief work.

(3) A Special Return Visit

One year ago, 34-weeks pregnant LV Yuanfang

“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.

(4) Develop Creative Industry and Serve Transformation of Economy

In 2014, AVIC proposed to realize transformation and

upgrading into manufacturing industry servicizing

with cultural creative industry as a leader, develop

general aviation creative cultural industry with

“Aifeike” as brand, develop leisure tourism industry

with “Aiyouke” as brand, develop endowment health

industry with “Aixinke” as brand, develop Internet

business incubation platform with “Aichuangke”

as brand, and develop high-end environmental

intelligent commercial bus with “Aiweike” as brand,

to realize effective overflow of brand, technology and

industry of high-tech aviation industries into modern

service industry, cultivate new economic growth point

and serve transformation and upgrading of domestic

economy.

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

23,739 flights

Joy A i r has accumulated

23,739 flights, safe flight time

of 43,233.77 hours, and fleet

size up to 8 aircrafts

3736

(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

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 systemOrganization 52

Production Safety Management Framework 1. Advance Production Safety Standardization

AVIC safety management departments actively

implement State Administration of Work Safety and

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

efforts to achieve enterprise safety management

standardization, onsite production standardization

and operation procedure standardization.

AVIC Production Safety Management System

Corporation Basic Management Platform Focusing on Improvement of 6S Standards

Resp

onsib

ility S

ystem

Sup

ervision and

M

anagem

ent System

Institution and

S

tandard

System

Training and

E

ducatio

n System

Em

ergency

Manag

ement S

ystem

Inform

ation

Netw

ork S

ystem

Ap

praisal and

Incentive S

ystem

AVIC with SafetyFirstAVIC in pursuit of safety 37

AVIC manufacture focusing on quality 40

3938AVIC with Safety First

AVIC Regional Production

Safety Coordination Team

AVIC Technical

Support Department

Production Safety Management Departments of Organizations Directly Subordinated to AVIC

AVIC Production

Safety Experts Team

AVIC Production Safety Commission

AVIC Production Safety Of�ce

Production Safety Management Departments of Organizations

Af�liated to AVIC

AVIC Production Safety Commission

AVIC Emergency Rescue Of�ce

Emergency Rescue Management Departments of Organizations Directly Subordinated to AVIC

Emergency Rescue Management Departments of Organizations Af�liated to AVIC

Safety Production Management Organization Chart

Safety and Emergency Reuse Management

Organization Chart2. 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%.

Hidden danger troubleshooting on site

3. Continue to Strengthen Basic Safety Management

In 2014, organizations of the Corporation, by combination of their own characteristics, continued to strengthen

basic management, prepared emergency plans, organized safety drills and emergency rescue drills, promoted

6S management and safety appraisal and management and increased efforts with regard to personal protection

and technological protection to improve the level of production safety. The Corporation’s investment amount in

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

p ro t ec t i on mo th ” ac t i v i t y w i t h t hemes o f

“strengthening the awareness of red l ine and

promoting safety and development” and “declaring

war against pollution”. During the activity, a total of

138 sets of propaganda and education wall charts

and 530 books for learning were distributed; more

than 300 workers, more than 400 shift leaders

and more than 310 pilots received safety training;

compliance inspections were carried out in 16

professional plants and 5 production departments;

500 employees were organized to participate and

performed well in knowledge contests.

China Flying Dragon deepens the construction of safety management system

In 2014, China Flying Dragon revised Production

Safety Responsibi l i ty system, t imely updated

Aviation Safety Management Manual, Operation

Specifications, Working Procedures Manual” and

other manual, developed China Flying Dragon

Handling Procedures for Unsafe Events of Civilian

Aircrafts, widely promoted the new China Flying

Dragon General Aviation Regulations on Flight

Operations and the brand new Safety Supervision

Worksheet, built a new cloud drive for safety

information, and introduced a safety monitoring

mechanism with tripartite participation of the Civil

Aviation, Flying Dragon and clients; Flying Dragon’s

safety management system was deepened in

all aspects. No flight accident, ground accident,

accident proneness or serious quality problem

occurred throughout the year.

AVIC Chengdu Aircraft nearly ten thousand people fighting in the forefront of production safety during the hot holiday in August

RMB

321.25

Million

The Corporation’s

investment amount in

terms of safety in 2014

is RMB321.25 Million,

essentially equivalent

compared with the

previous year

530 books

A total of 138 sets

of propaganda and

education wall charts

and 530 books

for learning were

distributed


4. Safeguard Occupational Health and Safety

AVIC issued Aviation Industry Corporation of China Management Measures for Occupational Health Monitoring

(Z Zi [2014] No. 135) and Aviation Industry Corporation of China Management Measures of Occupational Health

Experts (Z Zi [2014] No. 103), which made clear the occupational health rights of workers according to the law;

created the “AVIC Occupational Health Information System to monitor critical data with regard to occupational

health at regular intervals; by publishing compilations of occupational health laws and regulations, establishment

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.

According to Occupational Disease Prevention Law and work practice, each organization set full-time or

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.

(II) AVIC manufacture focusing on quality

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

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.

1. Under the Headquarters’ Overall Planning and Guidance

In 2014, quality assurance department of Corporation headquarters prepared and issued the Aviation Product

Quality Status Quo (2009-2014), promulgated the AVIC Outline for Quality Development (AVICQ2020) (2014

Edition), in which, they analyzed the quality development status and determined the quality development

planning in the next five years. 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.

In 2014, AVIC focused on user needs and successfully hosted the Third Aviation Quality Forum with the

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

development dynamics of advanced quality assurance concepts and methods, and enhanced exchanges,

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

and quality of supply chain and reduce procurement costs.

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

Association for Quality, and quality assurance teams of 15 affiliated organizations were awarded the title of

“2013-2014 National Outstanding Quality assurance T.

Serial

No.

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

7 organizations

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


Serial

No.

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 AviationContinuous Improvement of Core Workshop

QC Team

7 AVIC Changhe Aircraft Quality Composite Parts Engineering QC Team

8 AVIC Chengdu Institute GVT QC Team

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

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

3. Distinguished Quality Management Performance

(1) Xinhang achieved the title of “One Hundred Excellent Automobile Spare Parts Suppliers in China” for six years successively

In December, 2014, the appraisal result of the Eleventh One Hundred Excellent Automobile Spare Parts

Suppliers in China held by the China Automotive News was disclosed and 3 automobile spare parts enterprises

affiliated to the AVIC Xinhang won laurels again: the AVIC Xinhang PingYuan Filter Co., Ltd. was awarded

“excellent engine fittings and blowdown system supplier”; the AVIC Xinhang Yubei Steering System Limited

Liability Company was awarded “excellent steering system supplier” and the AVIC Xinhang Yuxin Automotive Air

Conditioning Co., Ltd. was awarded “excellent automotive electronics and electrical appliances supplier”. So

far, Xinhang has achieved the title of “One Hundred Excellent Automobile Spare Parts Suppliers in China” for six

years successively and won high praise within the industry and wide concern, which fully manifests the brand

influence of the Xinhang automobile spare parts.

Xinhang has integrated the aviation quality into the automobile spare parts industry and employ the advanced

technologies and the innovative management in the aviation industry into research and development,

production, sale and all other links of the automobile spare parts for years. At present, three automobile spare

parts products, including the Yubei power steering gear, the Yuxin automotive air conditioning and the PingYuan

filter rank first three positions in the industry among the national brands, whose rate of increase in production

and sale each year always exceeds that of the domestic automobile industry.

(2 ) AV IC 3201 Hosp i ta l won the h o n o r a r y t i t l e o f “ M e d i c a l a n d Heath Institution with the Masses’ Satisfaction” in Shaanxi Province

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.

The representative of AVIC in the supplier’s plant conducts the quality inspection at the site

(3) AVIC PingYuan got the UTAS Quality Clinic Certificate

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.

(4) AVIC Logistics boosts the supply chain quality management

“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 cutting-

edge purchase army.

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.

4544

(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.

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 ResponsibleAVIC

Law-abiding and self-disciplined, innovative and progressive 45

Care for employee, pay back the society 48

Cultivate and self-discipline, innovation and aggressiveFlourish enterprise, prosper country, and benefit the whole world

4746Self-disciplined and Responsible AVIC

AVIC Capital carefully propels education and implementation campaign

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

organizations, 665 party members and 37 members of the party leading group participating in this campaign. Since

commencement of this campaign, the three public consumptions of all the participants had great decreased by

reducing 42 meetings and 112 documents and abolishing, changing and establishing 424 rules and regulations.

2. Standardized Management, Self-examination and Self-discipline

In 2014, AVIC continued to standardize the internal management, successfully launched the model of leadership,

fully implemented the operation administration system (AOS) and fully conducted the unified IT framework. In

addition, implementation of “cost decrease and efficiency increase” achieved new effects; the auditing work was

enhanced and the risk prevention was promoted.

(1) AVIC Leadership Model Release

After repeated discussion and modification, the AVIC leadership model is finally released, which provides guidance

for AVIC leaders at all levels to enhance leadership.

(2) Development of AVIC Operation System

AVIC developed and implemented AVIC Operation

System (hereinafter referred to as AOS) throughout

the Corporation in 2004. By means of establishment

of a process-based operation framework, AOS

integrates and consolidates various elements of

management, clarifies operation processes and their

corresponding systems, standards, performance

indicators, tools and methods, etc. to fully integrate

management activities and all types of operation

activities into a unified document system that can

effectively adapt to needs of different operations,

units and levels, covering all product life cycles

and the whole value chain. This is a big leap in

management history of AVIC.

3. Self-Independent Innovation & Aggressiveness

AVIC has obtained a number of new achievements

on the technological development in 2014 by

strengthening innovation-driven. Throughout the year,

there are 4 national science and technology awards,

86 national defense science and technology awards;

AVIC-DoAVIC Leadership Model

Essential Factors: Conviction, Vision, Achievement, Inspiration, Do

Conviction“Cultivating our moral character, thriving the enterprise, dedicating ourselves to the serve of our

Vision“We can go as far as the mind let us.”

Inspiration“As heaven maintains vigor through movements, man should constantly strive for self-perfection.”

Do“Always be truth in word and resolute in deed.”

Achievement

“From good to excellent”

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 serviceGrow the energy of entrepreneurship In the process of bustle and changes, we sweep away camou�age to enhance concentration and uphold a country take-off dream with conviction.

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 scientic 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 difcult circumstances with endless hard work and color the magnicent 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 efcient execution teams;In the deepening of reform and the implementation of the strategy, we ought to conquer the difculties 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 scientic development;Achieving a win-win situation for all parties concerned;Fullling 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.

Aviation service: adhere to the strategy of “two integrations, three innovations, five characteris-tics, 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.

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.

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-mak-ing in accordance with the law.

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.

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.

Honest and Pragmatic: be honest, truth-seek-ing 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.

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.

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.

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.

AVIC-Do

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

and Industrialization” in-depth integration and

innovation experience center established by MIIT

becomes a national demonstration base.

China is the f i rst to develop the “Graphene Alloy”

Graphene, discovered in 2004 officially, is the

thinnest visible nanoscale material known to people;

is the most solid materials, and it is more than 100

times stronger than steel; is the fastest electronic

conductivity material, which is 140 times faster than

silicon materials; it is the lightest solid material, with

97.7% of light transmittance ...... it will “subvert the

future of the world’s electronics industry”.

In May 2014, AVIC Institute of Aviation Materials

originated “Graphene Alloy” materials – a major

independent innovation – a new type of alloy

materials was invented, filling the gap in the world’s

materials science. It also allows China to become the

leader in this field. The term “Graphene Alloy” went

down the word’s technological development history

from then on.


(II) Care for employee, pay back the society

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

Serial No.

Indicator Unit 2014 Remarks

1 Total number of employees Person 548,276Excluding 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

5Ratio of female administrative personnel

% 36.99

6 Employee turnover rate % 8.98

7Rate of social insurance for employees

% 100

8I n v e s t m e n t f o r e m p l o y e e training

104

Yuan5.01

9 Per capita training time Day 9.9

10 Total training person-timePerson-time

1,092,702

Induction training

Mountain-climbing competitions

(2) Employees’ happy lives

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.

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.

Painting and calligraphy exhibition

Tree planting activity

Birthday party

Labor is really beautiful

Employee paper-cut


2. Pay Taxes by the Law and Return to the SocietyAt 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”.

(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:

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.

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. Disaster Rescue and Relief, Poverty Alleviation

(1) Yun-8 aircraft put into rescue for Ludian Disaster Area in Yunnan fully

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 Yun-

8C 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.

Links

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

Mountains (Special Topics)” for more information.

On August 6, 2014, Yun-8 aircraft arrived at Yunnan Zhaotong Airport and

unloaded the relief materials.

(2) AVIC assists Shaanxi to ease drought by artificial precipitation

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.

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 High-temperature area was reduced obviously, which plays a critical role in relief of high-temperature and drought weather constantly existing in Shaanxi.

“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.”

—ElsaTECLEAB, GAAS Representative (African Ambassadors Spouses Association) and Mrs. Eritrean Ambassador

Echo

(2) AVIC is elected as 2014 China Best Enterprise for College Students Employment

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 (person-time); 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”.

(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.

53

(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.

Green development of the AVIC

52

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.

Construction of environmental management system 53Development of low-carbon ecological industry 54Carry out energy conservation and consumption reduction action 56

5554The Green Development of AVIC

(II) Development of low-carbon ecological industry

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 environment-friendly low-carbon ecological industry.

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.

The application of new technologies helps MA700 aircraft become the world’s next generation environment

protection aircraft type of turboprop regional jets. The direct cost, carbon dioxide (CO2) emissions and

nitrogen oxides (NOX) emissions of MA700 aircraft reduce 10%, 20% and 30% to 50% respectively, with an

outfield noise better than the standard requirement. MA700 aircraft also provides a bigger, quieter and more

comfortable cabin environment, with a sound airport adaptability and a rapid departure ability equivalent to a

turbofan aircraft.

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

services industry covering tourism, healthcare, pension, innovative design should be actively developed, which

is in line with the green aviation innovation proposed by AVIC.

(I) AVIC develops pension and health industry

According to the data issued by the Committee for Elderly Affairs of the PRC, the aging population in China will

increase from 178 million in 2011 to 221 million in 2015, and the aging population will represent one-third of the

national population around 2050. Based on the international standard, China has already become one of the

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.

AVIC Medical Industry Management Co., Ltd was formed in 2014 to integrate all medical institutions under

AVIC Assets into an entity. AVIC Medical will establish a regional “medical unity” by ways of integration, merger,

restructuring and escrow to form a O2O of medical and healthcare industry, thereby realizing long-distance

therapy and extending pension industry to the community as soon as possible. AVIC will also establish a

platform of pension and health industry on this basis, to make the pension and health industry that combines

healthcare and nursing moving toward standardization, network formation and clustering, as well as, enlarging

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

a p l a t f o rm o f pens ion and

health industry to fully utilize the

advantages of medical institutions

and aviat ion industry. Some

hospitals will be converted into

elderly inst i tut ions providing

healthcare services, aiming at

exploring the pension industry

c o m b i n i n g h e a l t h c a re a n d

nursing.

Secondly, the company will attract

the f ranch isees f rom sec to rs

of f inancia l , insurance, e lder ly

institutions, in particular the culture

c rea t i ve i ns t i t u t i ons , to fo rm

network distribution advantages

and gradually establish a regional

retirement pension platform.

Thirdly, the company will complete

the establishment of a platform by

2020, to form a creative pension

and health industry cluster with

brand advantages of AVIC, and

tap into the securities market

timely for business expansion.

(II) AVIC holds on strongly to develop green industry though facing difficulties

In recent years, wind power and photovoltaic industry has reached its trough.

However, AVIC is determined to develop green energy business and commenced

the largest distributed photovoltaic power project in China with a total investment

amount of RMB3.8 billion in August 2013.

The first batch of 325 kwh distributed photovoltaic power pilot project of AVIC

Hebei Anji Hongye was integrated into the power grid in the morning on 13 March,

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

generation capacity is 4,083 million kilowatt-hours, saving 12.25 tons of standard

coal per year, and reducing 407.12 tons of carbon dioxide emissions and 12.25

tons of sulfur dioxide emissions per year.

20%The carbon dioxide

emissions of MA700

aircraft will reduce 20%

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 environment-friendly low-carbon ecological industry

AVIC distributed photovoltaic power generation demonstration project combined to the grid

5756The Green Development of AVIC

(III) Carry out energy conservation and con-sumption reduction action

We actively implemented “green manufacturing”, carried out green production,

devote more effort to energy saving and emission reduction technological

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.

1. To Issue the Pollutants Treatment Standard and Technology of the Industry

The Cooperative Unit for Environmental Protection of AVIC organized and

prepared the “Advanced and Practical Technology Information of Major Pollutants

Treatment for Aviation Industry” and the “Work Manual of Energy Saving” to

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.

AVIC fog dispersal soft wing UAV platform field experiment achieved success

AVIC renewable strategic metals and alloy project phase I commissioning test run achieved success

2. To Promote and Apply the Technology of Energy Saving and Consumption Reduction

— Firstly, applying new technology and new process, phasing out obsolete

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

sewage treatment system to reduce pollutant discharge.

— Promoting resources reusing and carrying out green operation. For example,

implementing wastewater reusing, and using natural lighting, wind power and

solar power in factories.

— Researching and applying new green aviation technologies, focusing on the

development of technologies reducing pollutant discharge and internal and

external noise of aircrafts.

The Steering Group for Energy Saving and Environmental Protection of Aviation Industry Corporation of China

The Office of Energy Saving and Environmental Protection of Aviation Industry Corporation of China

The Administration Office of Energy Saving and Environmental Protection of the subordinate units

The Administration Office of Energy Saving and Environmental Protection of the member units

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

11.90%

6.78%

8.02%

19.13%

7.99%

6.85%

The comprehensive

energy consumption

for every

RMB10,000 of

production value

(comparable price)

reduced by 11.90%

In 2014, AVIC

further implemented

the national policy of

energy saving and

emission reduction

and reduced SO2

emissions by 6.78%

NOX emission

reduced by 8.02%

The comprehensive

energy consumption

for RMB10,000

added value

(comparable price)

decreased by

19.13%

COD emission

reduced by 7.99%

Ammonia nitrogen

emission reduced by

6.85%

3. To Research and Develop New Environmental Protection Treatment Technology

The pervasion of smog has become more frequent and serious in many cities

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

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.

AVIC Hangyu successfully achieved a breakthrough in a series of critical

technologies by utilizing the unique mature technologies of military products based

on the aviation products. It developed soft-wings unmanned aerial vehicle and

obtained a variety of patents.

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.

5958

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.

(I) AVIC over the seas

1. AVIC’s Scale Abroad

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.

Achievements in

Overseas Operation

(special topic)

AVIC moving toward the worldAVIC over the seas 59

Localized business philosophy 62

To be a friendly and sincere international citizen 64

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 fromnon-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

6160AVIC moving toward the world (special topic)

2. Main Activities in 2014

I n recen t yea rs , AV IC tends to

accelerate its overseas investment.

AVIC processes unique advantages in

implementation of overseas investment,

where the support network established

during decades of international trade

allows AVIC to get hold of information

around the world comprehensively

and conveniently; and the friendship

formed by years of friendly exchanges

allows AVIC to integrate into the local

community quickly.

Tender o ffe r and ho ld ing of KHD

Humboldt Wedag International AG (KHD)

In January 2014, AVIC International saw the

delivery of tender offer and holding of KHD.

By achieving majority shareholding of KHD,

AVIC has greatly enhanced its international

competit iveness in terms of cement-

concerned EPC projects, which lays a more

solid foundation for the development of

cement-based mechanical and electrical

EPC businesses.

AVIC integrates and sets up continental

motors group

In February 2014, AVIC International

announced the establishment of Continental

Motors Group. AVIC International acquired

Continental Motors, Inc. (USA) in 2011;

and acquired Thielert Company (Germany)

in to form Continental Motors Germany

in 2013. The Two well-known enterprises

and the recent established CMB constitute

the world’s only manufacturer with the full

line of aviation gasoline piston engines

and aviation coal / diesel piston engines -

Continental Motors Group.

AVIC Continental Company acquires F406 aircraft

production line

In April 2014, the Continental Motors located in the

United States acquired by AVIC in 2011 acquired the

F406 twin-engine aircraft production line from the

bankrupt Reims Airlines. F406 is a 14-seat general-

purpose aircraft with non-pressurized cabin. With

the acquisition, AVIC further enriched its production

lines of light business aircrafts and general-purpose

aviation / special-mission aircrafts.

FACC AG listed in Austria successfullyAt 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.

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 airl ine 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.

AVIC’s acquisition for Hilite Company

On October 30, AVIC took over all-around global

assets and businesses of Hilite Company upon the

successful M & A delivery from 3i Croup to AVIC EM

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 roadshow of liability insurance for aviation products rounded offOn October 28, AVIC rounded off a special roadshow of liability insurance for aviation products in London insurance market.

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.

January February

July August

April June

October


(II) Localized business philosophy

1. Localization of corporate culture

AVIC adheres to the Chinese cultural concept

“tolerance, solidarity, mutual assistance, and

win-win” with full respect for the host country’s

nat ional re l ig ion, customs and cul ture, and

l ifestyle, and actively takes various exchange

activit ies to promote cross-cultural exchange

and integration between Chinese and foreign

employees and to promote overseas companies to

build their corporate culture based on distinctive

AVIC characteristics.

2. Localization of Employees Employment

With the continuous development of overseas business, AVIC overseas companies, in line with the principle

of non-discrimination and in strict accordance with the management mode of “internationalization of talents,

and localization of employment”, actively promote the employees localization strategy by means of recruitment,

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

employees, accounting for about 3.61% of the total number. In the process of overseas operations, the initially

cultivated and created team of employees with diverse sources and diverse forms of employment further

promote a closer contact of overseas subsidiaries with local society.

Foreign employees of South African AVIC-International Flight Training Academy

As a professional school for training civilian pilots, AVIC-International Flight Training Academy (AIFA) has

become a pioneer of the “Go Out” strategy of Chinese aviation industry; become a high quality platform

to push the Chinese civil aviation airport to African market. More than half of all 103 employees in this

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

number of job opportunities for the locals when it enters into the market of South Africa.

Collaboration in perfect harmony AVIC

local office of Kenya that integrates into the local community

Foreign employees of AIFA

Cirrus SF50c Aircraft

On December 24, the Chr istmas Eve, AVIC

Chairman, Lin Zuoming sent a congratulatory letter

to CAIGA Cirrus in the United States, to extend

holiday greetings to the company’s employees and

their family members. In the letter, Lin Zuoming

said that, since Cirrus has become a wholly owned

subsidiary to CAIGA, under the leadership of the

Board of Directors, and with joint efforts of Cirrus’

executive team and all the employees led by Mr.

Dale KLAPMEIER and Mr. Patrick WADDICK, they

have achieved sustained improvement of operating

performance.


(III) To be a friendly and sincere international citizenAVIC 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 Sino-

foreign economic and trading cooperation, and a model international corporate citizen to make stakeholders’

satisfaction; it also wins the respect from local society.

1. Operation Management and Profit According to the Law

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.

(2) Profitable AVIC FACC AG and Successful Listing

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

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

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

Sino-Austrian cooperation and another milestone in China’s investment in Austria. It is widely reported and

generally considered by Austria’s main media that, thanks to the strong support of Chinese shareholders,

the listing of FACC AG is quite an extraordinary step, which is deemed as a “coronation” in the FACC AG’s

company history.

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.

(1) Acquisition and integration of Cirrus

Founded in 1984, Cirrus is the world’s leading

manufacturer of small aircrafts. After the financial

crisis in 2008, the United States’ market demand for

small general-purpose aircrafts shrank rapidly, leaving

Cirrus’ development in plight. CAIGA then seized the

favorable opportunity to realize the strategic M&A of

Cirrus in 2011.

However, after the M&A, the world economy touched

the bottom again, causing Cirrus’ market to continue

to deteriorate with serious shortage of funds and

the M&A strategy faced serious challenges. In face

of difficulties, CAIGA sized up the situation and

provided financial and policy supports for Cirrus

immediately to ensure operational turnover and R&D

investment. At the same time, it made great efforts to

accelerate innovations in technologies and products

and actively explore innovative business models

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.

By means of such efforts, improvement was made

in the overall economic performance of AVIC Cirrus

year by year. It delivered 276 aircrafts in 2013 with an

increase of 29% on year-on-year basis, accounting

for 37% in the global market segment; it delivered

308 aircrafts in 2014 with an increase of more than

12% compared with that in 2013, which was the

best performance of new aircraft shipments since

2008 and further reinforced its sound share in the

market of same-level aircrafts.

Joint efforts of employees from both AVIC and Cirrus

ushered in a bright future, which also won the local

community’s praise and drew their attention. In 2013,

Cirrus SR Aircraft obtained the “American Innovation

Award”. PR Newswire reported in a large format

about CAIGA Cirrus expanding the capacity of

Grand Forks Parts Plant and its preparations for the

production of jets the big screen of Times Square,

New York.

308

Foreign and Chinese employees of AVIC celebrated the successful startup of Turkish Cement Project

AVIC delivered 308

aircrafts in 2014 with an

increase of more than

12% compared with

that in 2013


3. Co-build and contribute to the local community

Support and help of the local parties are inseparable

for AVIC’s overseas development. AVIC shall, on

the basis of faithful operation according to the

law, actively pay attention to and participate in

construction and development of local areas, realize

enterprise value for local service, and perform social

responsibilities.

(1) The most environmentally friendly cement plant at the food of Alps

Rezzato Cement Plant affiliated to Italcementi Group

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

one of the most environmentally friendly, most

energy-saving and most efficient cement production

enterprises to welcome its 150th anniversary.

Eventually, it chose environmentally friendly and

energy-saving equipment, clean technology solutions

and project management services provided by

KHD affiliated to AVIC. Italian Prime Minister, Matteo

RENZI, personally ignited the clinker cement line for

the upgraded plant in November 2014.

KHD has rich experience in plant transformation

projects that it is capable of installing efficiently and

commissioning new equipment and minimizing

investment costs under the circumstances to ensure

the normal operation.

In addition, KHD also transform cement plants to

urban solid waste treatment stations successfully in

Italy, Norway, Russia, Latvia, Romania, Brazil, Turkey,

Lebanon, Thailand, India and other countries.

(2) New energy company’s PV power plant roots in England

In March 19, the gr id connect ion for AVIC

International terrestrial PV power plant project in

UK, namely the SpriggsFarm Power Station, was

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.

(3) Africa sees China’s first overseas technical support center for civi l aircrafts

To implement the “China-Africa Regional Aviation

Cooperation Program” init iated by Premier Li

Keqiang during his visit to Africa to provide technical

services and spare parts support for African users,

AVIC officially established its first Chinese overseas

technical support center for civil aircrafts (Tanzania) in

Tanzania. In the future, AVIC will gradually establish

customer service support centers including airline

technical support, spare parts support, f l ight

simulation training, and aircraft maintenance, to

deliver timely, effective, and comprehensive customer

services for Chinese aircraft users in Tanzania and

neighboring countries.

4. Carry out Overseas Public Benefit Activities

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.

(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.

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.

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.

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.

(2) AVIC International New Energy built roads and helps students in Cambodia

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.

(3) AVIC EM makes contributions orphanage in Sri Lanka

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.

Africa Vocational Skill Contest

New Energy builds roads for Cambodia

AVIC EM Sri Lanka makes contributions to

“Loris” orphanage

The most environmentally friendly cement plant at the food of Alps established by AVIC KHD

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.

The sound of readingin the mountains“Blue Chalk” of the teacher recruitment and supporting education69Sponsorship and Assistance – “Parents’ Love”70

(special topic)

(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

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 17th “teacher recruitment and education supporting” action sets off again

6968

(II) Sponsorship and Assistance – “Parents’ Love”

The problem “Stay-at-Home Children” is an emerging one encountered in poverty

alleviation in recent years. In addition to financial support, the children need more of

psychological care. And the poverty alleviation and student assistance done by AVIC

has been adhered to, by means of long-term practices, has been gradually expanded

and deepened, having touched people’s hearts.

Guizhou Airline Poverty Alleviation and “Parents’ love” Action

In 1993, Guizhou Airline of AVIC was commissioned by the former AVIC I, to conduct

the party construction and poverty alleviation in the 4 relative poor counties, including

Zhenning, Guanling, Puding, Ziyun. In recent 20 years, Guizhou Airline has invested

poverty alleviation funds over 30 million yuan in terms of the culture, education, health,

breeding, cultivation, transportation, water conservancy and renovation of dilapidated

buildings, etc., combining with practice, carried out some effective work based on the

AVIC leader’s visit of Pitaya Poverty Alleviation Project

AVIC volunteer visits the sponsorship student

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.

In the long process of helping the poor, Guizhou

Airline of AVIC concerned the new problem of stay-

at-home children dropping out the school and

lacking of love. Guizhou Airline volunteers launched a

sponsorship action “Parents’ love”. They chose poor

dropout children for volunteers to “adopt” according

to their own economic conditions, providing 100

yuan per month to the sponsorship children, and

often write to and visit them, so as to make the poor

stay-at-home children to go back to school due to

the relief, and get mental health growth due to the

love and care.

The key of AVIC volunteers’ loving action is not the

donation amount, but the true love and care to the

stay-at-home children.

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

On June 9, 2015, four stay-at-home

children committed suicide by taking

pesticides in Bijie, Guizhou. That is not the

first occurrence of such similar incident in

Bijie. In 2012, five children died of carbon

monoxide poisoning when they refuged

themselves in a garbage can and started

fire to warm themselves at a rainy night;

in 2014, twelve girls were raped by a

teacher, of which the youngest was only 8

years old...... without exception, they are

all lacked of happy childhood as peers

in cities and did not have basic life care

and spiritual care because their parents

worked in other places all year round.

7170The sound of reading in the mountains (special topic)

7372Retrospect and Prospect

7574Retrospect and Prospect

In 2014, AVIC carried out the “Year of Management Reform” activity in a deep-going way to overcome

difficulties incurred by the economic downward pressure and made new achievements in various tasks. It has

fulfilled social responsibilities properly in concert with the pace of development.

New breakthrough has been made in aviation equipment R&D; new achievements have been made in civilian

industrial development; new breakthrough has been made in overseas M&A and operations; solidification and

growth have been achieved in operating results; related market responsibilities have been well fulfilled, and

expectations of others have been well responded.

Management in terms of safety and quality has been enhanced to build and maintain the intrinsically safe and

reliable aviation industry manufacturing system; continuous promotion of enterprise management according

to the law and compliance operations has been carried out; the development of anti-corruption and the

construction of four undesirable working styles have been advanced; management improvement has been

promoted in all aspects by implementation of AVIC Operation System (AOS), strengthening of innovation-driven

roles, and transformation of scientific and technical achievements, to lay a foundation of self-discipline and

innovative responsibility to fulfill social responsibilities.

AVIC cares about its employees, conducts local investment, pays tax by law, returns to the society and

actively leads and participates in various community benefit activities, in which AVIC plays a positive role and

makes should due contributions, in China and foreign countries, and effectively fulfills its responsibilities in the

communities.

In terms of environmental responsibility, it continues to devote itself to adjustment of internal economic structure

and development of green economy, saving energy, vigorous development of new energy and green health

industries to promote the transformation of the macro-economy in its own development and upgrading way,

and to play its won role in environmental protection and sustainable economic and social development.

In 2015, AVIC will promote “running enterprise according to law” in all respects by holding onto the law-

based construction. In terms of social responsibility fulfillment, AVIC shall determine to accomplish research

and production tasks, expedite the implementation of civil aviation industry and expand the development

blueprint of civilian industries with the emerging aviation industries as breakthrough; to push forward soundly

the development of an innovative group based on technology innovation; to enhance the operation and

management control capabilities by the driving force of deepening the reform; to implement all requirements of

a law-based enterprise by the starter of running the enterprise according to law; to strengthen comprehensive

risk management, adhere to promotion of the construction of a clear and honest organization, talent teams

and culture depending on the mainline of secured development. In terms of social responsibility management,

AVIC shall plan and set up AVIC socially responsible funds to guide and build more projects that can show the

image of AVIC’s overall fulfillment of its social responsibilities, to support the group and member organizations

to undertake the social responsibility as central enterprises and establish the image of good corporate citizens.

AVIC Chairman, Lin Zuoming said: “Vision determines altitude; responsibility creates value!”

An enterprise with a sense of responsibility is of more growth potential. AVIC will regard social

responsibilities as an powerful engine to promote its healthy development and shoulder responsibilities

and advance forward in great strides on the way of achieving the China Dream!

7776Appendix

Expert Evaluation

2014 Corporate Social Responsibility Report released by AVIC completely discloses the Company’s responsibilities to shareholders,

customers, employees, environment and community, and related stakeholders, as well as critical issues concerned in respects of safety,

quality, energy saving, etc. in a systematic manner, which fully embodies AVIC’s concept of social responsibilities, “Heart as Wing the and Fly

with Dream”, and its achievements made by active fulfillment of its social responsibilities.

The report also shows the Company’s social responsibilities and public benefit charitable responsibilities in foreign countries in unique

manners of the two special topics “AVIC Going Global” and “Reading Sounds in Mountains”, which fully illustrates that, AVIC is an eligible

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

consolidate, innovate and develop continuously by the opportunity of 2014 CSR Report to establish a new benchmark for the sustainable

development of the industry and to become a leader of Central enterprises in respect of social responsibilities.

Deng Guosheng

Professor, Director of Innovation and Social Responsibility Research Center,

School of Public Policy & Management, Tsinghua University

Comparison table of GRI indicatorsDisclosure standard of general information

Category Content of indicator Reference location

Strategy and analysis

G4-1The 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

G4-2 Describe main impacts, risks and opportunities P8-9

Introduction to the organization

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

G4-6The 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

G4-8The market the organization serves (including region segmentation, types of service-related industries, types of customers/beneficiaries)

P1, P30

G4-9Size 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

G4-10

Total numbers of employees divided by labor contracts and sexes P46

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

G4-15Organization-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

Substantial aspects and boundaries identified

G4-17

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

G4-18Describe 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

G4-23Describe significant changes in terms of scope and boundary of aspects and changes during the previous reporting period

N/A

7978Appendix

Disclosure standard of general information


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

G4-31

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

G4-33

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 Not Adopted

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

G4-37Consultation 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

G4-43 Measures taken to strengthen the top governance body’s collective understanding of economic, environmental and social topics Not Adopted

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 self-evaluation

Not Adopted

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

G4-45

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

G4-50 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



G4-51

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

G4-52Describe 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

G4-53Describe how to consult and consider stakeholders’ view on compensation, including the remuneration policy and results of proposal voting, if applicable

Not adopted

G4-54Each 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

G4-55Each 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

Integrity and ethics

G4-56 Describe value, principle, standard and codes of conduct, such as the rules of conduct and ethics P1

G4-57Seek 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

G4-58Internal 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

Economy

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

Environment

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-EN11The 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-EN12In 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-EN141According 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

G4-EN17 Other indirect greenhouse gas emissions (Category III) Not Adopted

G4-EN18 Greenhouse gas emission intensity P52, P54

8180Appendix



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-EN22 The total amount of sewage water classified by the water quality and discharge destination Not Adopted

G4-EN23 Total weight of waste classified by category and treatment Not Adopted

G4-EN24 Total number and amount of serious leakage N/A

G4-EN25The 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

G4-EN26The 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

G4-EN27 Reduce the degree of the environmental impact of products and services P52, P54

G4-EN28 Percentage of recovery-based sold products and their packaging materials by categories descriptions Not Adopted

G4-EN29 Amount refined due to violations of environmental laws and regulations as well as frequency of non-financial penalties N/A

G4-EN30Significant environmental impacts caused by transportation of products, other goods and materials for operation of the organization

Not Adopted

G4-EN31 Total environmental protection expenditures and investments by categories description P17

G4-EN32 Proportion of new suppliers selected by environment standards Not Adopted

G4-EN33 Significant actual and potential adverse impact on the environment of supply chain, as well as measures taken Not Adopted

G4-EN34Number of complaints in terms of human rights impacts that have been submitted, processed and resolved through formal mechanism

N/A

Labor practices and decent work

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-LA4Minimum notice period on re-operating changes, including whether description is specified in the collective agreement during the notice period

N/A

G4-LA5The 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-LA6Categories 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-LA10Skills management and lifelong learning programs to strengthen continued employability and assist employees to manage career termination

Not Adopted

G4-LA11 Percentage of employees receiving regular performance and career development appraisal by sexes and categories Not Adopted

G4-LA12Composition of employees in the governance body and other employees by sexes, age groups, minority groups and other diverse indicators

Not Adopted

G4-LA13 Male and female ratio of basic salary and remuneration by employee categories and important operation sites N/A

G4-LA14 The proportion of new suppliers selected in accordance with standard labor practices 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

G4-LA16 Number of labor complaints that have been submitted, processed and resolved through the formal mechanism N/A



Human rights

G4-HR1The total number and percentage of important investment agreements and contracts with clauses about human rights or under human rights review

Not Adopted

G4-HR2The total number of hours of employee training and percentage of such trained employees as per operation-related human rights policies and procedures

Not Adopted

G4-HR3 The total number of incidents of discrimination as well as corrective actions taken by the organization N/A

G4-HR4Identified 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

N/A

G4-HR5Identified operation site and supplier that have serious risks of child-labor employment and measures to effectively eliminate employment of child labor

N/A

G4-HR6Identified 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-HR7 Percentage of security personnel trained in operation-related human rights policies and procedures Not Adopted

G4-HR8 The total number of incidents involving violations of indigenous rights, and actions taken by the organization N/A

G4-HR9 The total number and percentage of operation sites under receiving human rights review or impact assessment Not Adopted

G4-HR10 The proportion of new suppliers selected by human rights 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-HR12Number of complaints in terms of human rights impacts that have been submitted, processed and resolved through formal mechanism

Not Adopted

Community

G4-SO1Ratio 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-SO3Percentage 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-SO8Amount 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

Product responsibility

G4-PR1The percentage of important product and service categories under health and safety assessment with the purpose of improving current situations

Not Adopted

G4-PR2The 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

N/A

G4-PR3Information 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

Not Adopted

G4-PR4The 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-PR7Total 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-PR9If 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

8382Appendix

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):

★　E-mail: [email protected]☆　 Mail: Mailing address: Social Responsibility of the Group, AVIC Building, No. 128 Jianguo Road, Chaoyang District, Beijing City,

postcode: 100022☆　Tel or fax: Tel: 010-58356041 Fax: 010-58356979

1. Your overall assessment on the Report (select and scoring)□ Satisfied, points (90-100) □ Relatively satisfied, points (80-89) □ Generally satisfied, points (70-79)□ Less satisfied, points (60 to 69) □ Dissatisfied, points (0 to 59)

2. Please scoring for AVIC’s fulfillment of social responsibilities in the following form

ItemSatisfied

(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

ItemSatisfied

(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

Layout design

5. What do you think you need to know the information that does not be reflected:

.

6. What are your suggestions for our future preparation of the Report?

.

《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《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。

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。

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

出具时间：2015 年 6 月 29 日

84Appendix

7. Please select the best topic and content of the Report in your opinion (click”√” in the corresponding position, one optional only)

Topics and content catalog Page Vote for best topic and content Description

I. AVIC in Blue Sky 18 –

(I) Eagle Soaring in Sky, Cruise for Peace 19

(II) Pigeon Singing in Blue Sky, Add Wing for the Development 21

II. AVIC around Us 24 –

(I) Be with Each Other’s Neighbor, Anyone Knows You 26

(II) Not in the Cloud, But in Your Life 30

III. AVIC with Safety First 34 –

(I) AVIC in pursuit of safety 35

(II) AVIC manufacturing with Reliable Quality 38

IV. Self-discipline and Responsible AVIC 42 –

(I) Self-Discipline, Law-Abiding, Innovative and Aggressive 43

(II) Care for Employees and Return to Society 46

V. AVIC with Green Development 50 –

(I) Construction of environmental management system 51

(II) Development of Low-Carbon Eco-Industries 52

(III) Carry Out Energy Conservation Actions 54

VI AVIC Going Global (Special Topics) 56 –

(I) AVIC Abroad 57

(II) The Philosophy – Localization 60

(III) Sincere and Friendly Global Citizens 62

VII. Reading sounds in Mountains (Special Topics) 66 –

(I) The “Blue Chalk” of teacher recruitment and supporting education 67

(II) Sponsorship and Assistance -”Parents’ Love” 68

8. Which channels do you access to get and read the Report?□ Downloaded from AVIC website □ Receive a paper version □ Forwarding in your Circle of Friends□ Others (please specify appropriately)

9. Relationship between you and AVIC can be defined as which one of the following:□ Internal employee □ Customer □ Supplier □ Central or local government □ Community organizations □ Investor□ Creditor □ Investment partner □ Social public □ Other status (please specify appropriately)

10. Please fill in the following information and we will give full consideration to your comments and suggestions; we will thank you and respond in an appropriate manner, and promise to protect your information properly from being accessible to third parties:

Name: Phone: E-mail:

Mailing address:

Thanks again for your help!

Developed by CSR Department, Aviation Industry Corporation of ChinaJune 2015

About the Report 8584

The Report is the fifth CSR report released by Aviation Industry Corporation of China.

For ease of presentation and reading, “Aviation Industry Corporation of China” may also be expressed by “AVIC”

“the Corporation” and “we/us”.

Organizational Scope of the Report

The Report covers the headquarters and all units affiliated to Aviation Industry Corporation of China.

Time Scope of the Report

January 1 – December 31, 2014. Taking into account the continuity and comparability of information

disclosure, part of the information may be extended appropriately prior to or after the Scope of Time.

Reporting Period

The Report is an annual report. The last report was released on December 5, 2014.

Reference Guidelines for Preparation of the Report

The Report is developed in accordance with relevant requirements of Guidelines on the Central Enterprises’

Fulfillment of Corporate Social Responsibility and “Twelfth Five-Year Plan” Harmonious Development Strategy

Outline for Central Enterprises released by State-owned Assets Supervision and Administration Commission,

with reference to Sustainability Reporting Guidelines (Version G4.0) released by Global Reporting Initiative

(GRI), ISO26000 Guidance on Social Responsibility and Corporate Social Responsibility Reporting Guidelines

for Chinese Enterprises (CASS-CSR3.0) released by International Standard Organization, and combined with

actual situations of Aviation Industry Corporation of China.

Language Version

The Report is released in both English and Chinese versions, and the Chinese version shall prevail in case of

any discrepancies.

Release Form of the Report

The Report is provided paper and electronic forms. Please visit our web site (www.avic.com.cn/) to download

the electronic version. For the paper version of the Report, please send an e-mail to [email protected] or call

8610-58356041 for obtaining.

Wechat lovers can scan the Wechat number to follow AVIC, where you may download a

HTML5-format Simplified Report and keep abreast of our fulfillment of responsibilities..

Official Wechat of AVIC

Social Responsibility Report 2014 · and the national economy lifelines, AVIC is an important part of the national strategic industry and the national innovation system. Our mission

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