%% %% 丨证券研究报告丨 公司研究丨点评报告丨中航沈飞（600760.SH） [Table_Title] 批产型号毛利率创新高，按需扩产迎接景气上行 | --- | --- | |------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------| | 报告要点 | | | [Table_Summary] 受合同签订进度影响公司 2024H1 收入同比下滑，但下游型号需求确定交付加速，待后续合同 | | | 签订全年收入目标预计稳步实现；盈利角度，沈飞随批产机型生产成熟度持续提升，毛利率在 | | | 2024Q2 创新高，受研发费用高额投入以及信用减值损失影响净利率同比提升幅度小于毛利率， 但整体仍维持高位；在军品"以销定产"背景下，公司在沈北新区新建厂区优化结构布局拓展 | | | 发展空间，同时吉航公司作为维修平台成长 ...

证券研究报告 2024 年 9 月 2 日 公司研究/公司快报 公司近一年市场表现 市场数据：2024 年 8 月 30 日 收盘价（元）： 41.22 年内最高/最低（元）： 46.00/33.39 流通 A 股/总股本（亿股）： 27.45/27.56 流通 A 股市值（亿元）： 1,131.38 总市值（亿元）： 1,135.90 基础数据：2024 年 6 月 30 日 基本每股收益(元)： 0.59 摊薄每股收益(元)： 0.59 每股净资产(元)： 6.24 净资产收益率(%)： 9.40 资料来源：最闻 骆志伟 执业登记编码：S0760522050002 邮箱：luozhiwei@sxzq.com 李通 执业登记编码：S0760521110001 电话：010-83496308 邮箱：litong@sxzq.com 其他军工Ⅲ 中航沈飞（600760.SH） 买入-A(维持) 净利润稳定增长，利润率提升 事件描述 中航沈飞公司发布 2024 年中报。2024 年上半年公司营业收入为 216.25 亿元，同比减少 6.59%；归母净利润为 16.18 亿元，同比上升 8.39%；扣非 后归母净利润 ...

利润稳定增长，全面强化提质增效 主要观点： ⚫[Table_Summary] 事件描述 8 月 28 日，公司发布 2024 年半年度报告。根据公告，2024 年上半年公 司营业收入为 216.25 亿元，同比下滑 6.59%；归母净利润为 16.18 亿元， 同比增长 8.39%。 ⚫ 公司持续推动重点任务建设 面对严峻的科研生产任务形势，公司聚焦当前形势任务和年度工作目标， 对正航空工业集团党组决策部署，协调推进九大重点任务，加快建设一 流企业。 上半年公司受合同签订进度影响，相关产品既定需求未如期签订合同， 营收有所下滑。费用方面，销售费用同比有所减少，主要是展览费减少 以及处置子公司所致；管理费用同比有所减少，主要是物料消耗减少所 致。 ⚫ 投资建议 预计公司 2024-2026 年归母净利润分别为 37.03 亿元、45.05 亿元、54.20 亿元，同比增速为 23.1%、21.7%、20.3%。对应 PE 分别为 30.68 倍、25.21 倍、20.96 倍。维持"买入"评级。 ⚫ 风险提示 下游需求低于预期，研发不及预期，产能释放不及预期。 [公司价格与沪深 Table_Chart] 300 ...

归母净利稳定增长,成本管控能力突出 中航沈飞点评报告 2024 年 08 月 28 日 | --- | --- | |-------|---------------------| | | | | | 中航沈飞(600760.SH) | | 推荐 | 维持评级 | | | | 分析师 李良 율: 010-80927657 网: liliang_yj@chinastock.com.cn 分析师登记编码：S0130515090001 胡浩淼 盤: 010-80927657 网: huhaomiao_yj@chinastock.com.cn 分析师登记编码：S0130521100001 资料来源：iFinD，中国银河证券研究院 ● 投资建议:预计公司 2024-2026 年归母净利润分别为 37.52/46.19/55.44 亿 元,EPS分别为1.36/1.68/2.01元,当前股价对应PE分别为29.79/24.20/20.16 倍,维持"推荐"评级。 相关研究 ● 风险提示:下游行业需求波动的风险;客户延迟验收的风险;产能释放进度不 及预期的风险;市场竞争和军品审价导致毛利率下降的风险。 ● ● 事件:公司发布 ...

中航沈飞（600760.SH） 买入（维持评级） 公司点评 证券研究报告 中航沈飞：盈利能力提升彰显主机链长 发展韧性，静待装备建设景气恢复 业绩简评 公司 24H1实现营收216.25亿（同比-6.6%），实现归母净利润 16.18 亿（同比+8.4%），其中 24Q2 实现营收 121.32 亿（同比-13.2%， 环比+27.8%），实现归母净利润 9.02 亿（同比+6.0%，环比+26.0%）， 符合预期。 经营分析 短期营收端承压，利润增长彰显主机链长发展韧性：24H1 公司营 收 216.25 亿元（-6.6%），归母净利润 16.18 亿（+8.4%）；其中 Q2 单季营收 121.32 亿元，同比-13.2%，环比+27.8%；归母净利润 9.02 亿，同比+6.0%，环比+26.0%。受合同签订进度影响，相关产品既 定需求未如期签订合同，公司营收端短期承压。截至 24Q2 季末， 公司合同负债为 29.52 亿元，较 23Q4 末减少 55.97%，主要系前期 预收款产品销售在当期确认收入所致。 毛利率同比提升，研造修一体化促成能效提升：24H1 公司实现毛 利率 12.5%（同比+2.1 ...

经营计划完成度超过 40%；盈利能力有所提升 2024 年 08 月 29 日 事件：公司 8 月 28 日发布了 2024 年中报，1H24 实现营收 216.2 亿元， YoY-6.6%；归母净利润 16.2 亿元，YoY+8.4%；扣非归母净利润 15.9 亿元， YoY+10.5%。公司业绩基本符合市场预期。公司 1H24 收入下降主要受合同签 订进度影响，相关产品既定需求未能如期签订合同；归母净利润增长主要受益于 毛利率的提升。 连续 2 个季度利润同比增长；盈利能力有所提升。单季度看，公司 1Q24~2Q24 分别实现营收 94.9 亿元（YoY+3.5%）、121.3 亿元（YoY-13.2%）； 分别实现归母净利润 7.2 亿元（YoY+11.6%）、9.0 亿元（YoY+6.0%）。公司 季度收入同比有所波动（受合同签订进度影响），但归母净利润同比保持增长。 盈利能力方面，公司 2Q24 毛利率为 12.9%，同比增加 3.02ppt；净利率为 7.4%， 同比增加 1.46ppt。公司 1H24 综合毛利率同比增加 2.09ppt 至 12.5%；净利率 同比增加 1.11ppt 至 7. ...

审议通过《关于中航沈飞 2024 年半年度报告全文及摘要的议案》 监事会认为公司 2024 年半年度报告的编制和审议程序符合法律、法规、公 司章程和公司内部管理制度的各项规定。公司 2024 年半年度报告的内容和格式 符合中国证监会和上海证券交易所的各项规定，所包含的信息能从各个方面真 实地反映出公司 2024 年半年度的经营管理和财务状况等事项。监事会没有发现 参与 2024 年半年度报告编制和审议的人员有违反保密规定的行为。 监事会保证公司 2024 年半年度报告所披露的信息真实、准确、完整，承诺 其中不存在虚假性记载、误导性陈述或重大遗漏。 证券代码：600760 证券简称：中航沈飞 公告编号：2024-039 中航沈飞股份有限公司 第十届监事会第四次会议决议公告 本公司监事会及全体监事保证本公告内容不存在任何虚假记载、误导性陈 述或者重大遗漏，并对其内容的真实性、准确性和完整性承担法律责任。 一、监事会会议召开情况 中航沈飞股份有限公司（以下简称"公司"）第十届监事会第四次会议（以 下简称"本次会议"）于 2024 年 8 月 18 日以电子邮件方式发出会议通知，并于 2024 年 8 月 28 日在 ...

一、中航财务公司基本情况 中航财务公司是经国家金融监督管理总局批准，并取得《金融许 可证》，在原国家工商行政管理总局登记注册，具有企业法人地位的 非银行金融机构。 中航财务公司是在原西安飞机工业集团财务有限责任公司和原 贵州航空工业集团财务有限责任公司重组基础上，由中国航空工业集 团有限公司及所属成员单位共 12 家共同出资组建，于 2007 年 5 月正 式成立。后经四次增资及股权变更，现有注册资金 395,138 万元人民 币，股东单位 4 家，其中，中国航空工业集团有限公司出资额 262,938 万元，占注册资本的 66.54%；中航投资控股有限公司出资额 111,250 万元，占注册资本的 28.16%；中航西安飞机工业集团股份有限公司 出资额 14,400 万元，占注册资本的 3.64%；贵州贵航汽车零部件股 份有限公司出资额 6,550 万元，占注册资本 1.66%。 中航沈飞股份有限公司 关于对中航工业集团财务有限责任公司 关联存贷款的风险持续评估报告 根据《上海证券交易所上市公司自律监管指引第 5 号——交易与 关联交易》要求，中航沈飞股份有限公司（以下简称"公司"）查验 了中航工业集团财务有 ...

中航沈飞股份有限公司 独立董事专门会议 2024 年第三次会议 独立董事签字： 中航沈飞股份有限公司董事会独立董事专门会议 ______________ 朱秀梅 ______________ 王 敏 ______________ 杨志明 _____________ 毛 群 2024 年第三次会议的审核意见 根据《上市公司独立董事管理办法》《上海证券交易所股票上市规则》等 法律、法规和规范性文件及《中航沈飞股份有限公司章程》（以下简称"《公 司章程》"）的有关规定，作为中航沈飞股份有限公司（以下简称"公司"） 的独立董事，我们召开了公司董事会独立董事专门会议 2024 年第三次会议， 对拟提交公司第十届董事会第七次会议审议的《关于中航沈飞对中航工业集团 财务有限责任公司关联存贷款风险持续评估报告的议案》发表如下审核意见： (以下无正文） 中航沈飞股份有限公司 独立董事专门会议 2024 年第三次会议 （此页无正文，系《中航沈飞股份有限公司董事会独立董事专门会议 2024 年第三次会议的审核意见》签署页） 公司本次编制的风险持续评估报告充分反映了中航工业集团财务有限责 任公司的经营资质、业务及风险状况。我们认为中 ...

Earnings Per Share and Profitability - Basic earnings per share for the reporting period (1-6 months) increased by 9.26% to 0.59 RMB per share compared to the same period last year[19] - Diluted earnings per share for the reporting period (1-6 months) increased by 9.26% to 0.59 RMB per share compared to the same period last year[19] - Basic earnings per share after deducting non-recurring gains and losses increased by 11.54% to 0.58 RMB per share compared to the same period last year[19] - Net profit attributable to shareholders of the listed company was RMB 1.62 billion, an increase of 8.39% year-on-year[21] - Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses was RMB 1.59 billion, an increase of 10.51% year-on-year[21] - Net profit attributable to parent company shareholders increased to 1,618,348,252.70 RMB, up 8.4% from 1,493,066,408.17 RMB in the same period last year[93] - Basic and diluted earnings per share (EPS) both increased to 0.59 RMB, up 9.3% from 0.54 RMB in the previous year[93] - Total comprehensive income attributable to parent company shareholders reached 1,591,410,102.14 RMB, a 7.3% increase from 1,482,519,122.09 RMB in the same period last year[93] Return on Equity - Weighted average return on equity decreased by 0.83 percentage points to 10.16% compared to the same period last year[19] - Weighted average return on equity after deducting non-recurring gains and losses decreased by 0.60 percentage points to 9.97% compared to the same period last year[19] Revenue and Costs - Revenue for the reporting period (1-6 months) was RMB 21.62 billion, a decrease of 6.59% compared to the same period last year[21] - Revenue for the first half of the year was RMB 216.25 billion, a decrease of 6.59% year-on-year, primarily due to delays in contract signings affecting product demand[27] - Total revenue for the first half of 2024 was RMB 21,624,693,546.57, a decrease from RMB 23,150,071,290.54 in the same period of 2023[91] - Operating costs for the first half of 2024 were RMB 19,705,227,428.17, down from RMB 21,365,303,387.23 in the same period of 2023[92] Cash Flow and Financial Position - Net cash flow from operating activities was negative RMB 5.89 billion, an improvement from negative RMB 9.47 billion in the same period last year[21] - Total assets at the end of the reporting period were RMB 48.00 billion, a decrease of 13.46% compared to the end of the previous year[21] - Accounts receivable surged by 97.88% to RMB 140.97 billion, mainly due to delayed collection of sales proceeds[31] - Inventory decreased by 38.02% to RMB 72.21 billion, primarily due to a reduction in work-in-progress[31] - Monetary funds decreased by 46.63% to RMB 83.11 billion, mainly due to delayed collection of sales proceeds[31] - Contract liabilities decreased by 55.97% to RMB 29.52 billion, as prepayments were recognized as revenue upon product delivery[31] - Total assets decreased to 48.00 billion yuan from 55.47 billion yuan, a decline of 13.47%[87] - Current assets decreased to 38.79 billion yuan from 46.60 billion yuan, a decline of 16.75%[85] - Non-current assets increased to 9.22 billion yuan from 8.87 billion yuan, a growth of 3.92%[86] - Total liabilities decreased to 30.81 billion yuan from 39.21 billion yuan, a decline of 21.42%[87] - Current liabilities decreased to 28.16 billion yuan from 35.60 billion yuan, a decline of 20.89%[86] - Non-current liabilities decreased to 2.66 billion yuan from 3.61 billion yuan, a decline of 26.33%[87] - Shareholders' equity increased to 17.19 billion yuan from 16.26 billion yuan, a growth of 5.71%[87] - Accounts receivable increased to 14.10 billion yuan from 7.12 billion yuan, a growth of 98.03%[85] - Inventory decreased to 7.22 billion yuan from 11.65 billion yuan, a decline of 38.01%[85] - Fixed assets increased to 5.07 billion yuan from 4.54 billion yuan, a growth of 11.70%[86] - Total assets as of June 2024 were RMB 9,204,392,130.70, compared to RMB 8,934,397,787.76 in the same period of 2023[89] - Total liabilities as of June 2024 were RMB 352,392,447.68, slightly higher than RMB 351,740,255.86 in the same period of 2023[90] - Shareholders' equity as of June 2024 was RMB 8,851,999,683.02, up from RMB 8,582,657,531.90 in the same period of 2023[90] - Other receivables amounted to RMB 1,344,505,926.97 as of June 2024[89] - Long-term equity investments were RMB 6,467,105,040.26 as of June 2024, slightly higher than RMB 6,437,775,423.02 in the same period of 2023[89] - Interest income for the first half of 2024 was RMB 199,245,527.42, down from RMB 238,451,079.61 in the same period of 2023[92] - Cash received from sales of goods and services surged to 11,849,312,505.75 RMB, more than doubling from 5,129,055,882.18 RMB in the previous year[96] - Interest income decreased to 10,342,433.03 RMB, down 35.3% from 15,977,859.25 RMB in the same period last year[94] - Investment income from associates and joint ventures declined to -1,476,829.18 RMB, a 234.5% decrease from -441,415.31 RMB in the previous year[94] - Other comprehensive income after tax related to equity instrument investments decreased to -11,560,509.10 RMB, a significant drop from 13,375,788.54 RMB in the same period last year[95] - Total comprehensive income for the period stood at 1,336,430,429.90 RMB, a 2.9% decrease from 1,376,580,627.71 RMB in the previous year[95] - Operating cash flow for the first half of 2024 was -5.89 billion RMB, a significant improvement from -9.47 billion RMB in the same period last year[97] - Net cash used in investing activities was -551.63 million RMB, compared to -763.05 million RMB in the previous year[97] - Net cash used in financing activities was -815.71 million RMB, an increase from -431.82 million RMB in the prior year[98] - Cash and cash equivalents at the end of the period were 8.31 billion RMB, down from 15.57 billion RMB at the beginning of the period[98] - Parent company's operating cash flow was 4.17 million RMB, a decrease from 7.60 million RMB in the previous year[99] - Parent company's net cash used in investing activities was -96.46 million RMB, a significant improvement from -477.69 million RMB in the prior year[100] - Parent company's net cash used in financing activities was -1.10 billion RMB, compared to -534.69 million RMB in the previous year[100] - Parent company's cash and cash equivalents at the end of the period were 883.40 million RMB, down from 2.08 billion RMB at the beginning of the period[100] R&D and Innovation - R&D expenses increased by 38.73% to RMB 5.68 billion, reflecting higher investment in innovation[29] - R&D expenses increased to RMB 568,012,443.10 in the first half of 2024, up from RMB 409,446,288.68 in the same period of 2023[92] Subsidiaries and Investments - The company completed a capital increase and expansion for its subsidiary, Jihang Company, introducing two new investors, maintaining a controlling stake of over 51%[33] - The company's wholly-owned subsidiary, Shenfei Company, acquired a state-owned land use right for RMB 628.88 million for a partial relocation project[34] - The fair value of the company's stock investments decreased by RMB 15.41 million, resulting in a total fair value of RMB 203.55 million at the end of the period[35] - The company invested RMB 180 million in the non-public issuance of shares of AVIC Avionics Systems Co., Ltd., with a fair value of RMB 152.48 million at the end of the period[36][37] - Shenfei Company, a subsidiary, reported total assets of RMB 4.41 billion, net assets of RMB 1.39 billion, and operating income of RMB 2.13 billion[39] - Jihang Company, another subsidiary, reported total assets of RMB 263.31 million, net assets of RMB 56.47 million, and operating income of RMB 36.36 million[39] - Yangzhou Institute, a joint venture, reported total assets of RMB 56.16 million, net assets of RMB 19.97 million, and operating income of RMB 3 million[39] Environmental and Social Responsibility - Shenfei Company's chemical oxygen demand (COD) emissions in the first half of 2024 were 18.4 tons, and ammonia nitrogen emissions were 1.84 tons, both meeting discharge standards[50] - Shenfei Company's volatile organic compounds (VOCs) emissions in the first half of 2024 were 61.56 tons, meeting discharge standards[50] - Shenfei Company's hazardous waste disposal in the first half of 2024 was 1,398.95 tons, all entrusted to qualified units[50] - Jihang Company's chemical oxygen demand (COD) emissions in the first half of 2024 were 1.72 tons, and ammonia nitrogen emissions were 0.10 tons, both meeting discharge standards[51] - Jihang Company's volatile organic compounds (VOCs) emissions in the first half of 2024 were 10.25 tons, meeting discharge standards[51] - Jihang Company's hazardous waste disposal in the first half of 2024 was 75.86 tons, all entrusted to qualified units[51] - Shenfei Company implemented 6 environmental protection renovation projects in 2024, including sandblasting machine and supporting facility upgrades, and sewage station anti-corrosion layer renovation[52] - Shenfei Company and Jihang Company are currently undergoing multiple construction projects, including the 412 Metal Honeycomb Manufacturing Project and the Aircraft Maintenance Production Line Construction Project[54] - Both companies conducted emergency environmental incident drills during the reporting period, with no environmental incidents occurring[55] - Shenfei Company implemented automatic online monitoring for wastewater, heavy metals, and gas boilers, while Jihang Company monitored COD, ammonia nitrogen, pH, and VOCs emissions[56] - Shenfei Company disclosed environmental information in March 2024 as required by the Shenyang Ecological Environment Bureau, while Jihang Company was not required to disclose environmental information[57] - Shenfei Company developed an energy online monitoring system (Phase I) and is exploring an energy and environmental information platform to enhance digital pollution prevention[60] - Jihang Company conducted an emergency drill for hazardous waste leakage and improved its environmental management system by re-applying for a pollution discharge permit[61] - Shenfei Company achieved the AVIC Group's carbon emission reduction target for the first half of the year, with specific measures including optimizing the energy and carbon management system and developing an energy and environmental information system[62] - Jihang Company also met the AVIC Group's carbon emission reduction target, implementing measures such as energy-saving lighting system upgrades and replacing high-energy-consuming equipment[62] Corporate Governance and Shareholder Meetings - The company held its 2024 First Extraordinary General Meeting on February 29, 2024, passing 7 proposals including amendments to the Articles of Association and the election of the 10th Board of Directors[41] - The 2023 Annual General Meeting was held on April 26, 2024, approving 10 proposals including the 2023 financial report and 2024 financial budget[41] - The 2024 Second Extraordinary General Meeting on June 14, 2024 approved 15 proposals, including the issuance of A-shares to specific targets and related transactions[42] - The company completed the election of the 10th Board of Directors and Supervisory Committee on February 29, 2024, with Ji Ruidong elected as Chairman and Song Shuiyun as Chairman of the Supervisory Committee[43][44] - Liu Niancai was elected as a director at the 2024 Second Extraordinary General Meeting on June 14, 2024[44] - Wang Linfeng was appointed as Vice President at the 10th Board of Directors' fifth meeting on June 28, 2024[44] - Zuo Linxuan was appointed as Vice President at the 10th Board of Directors' sixth meeting on July 22, 2024[44] - No profit distribution or capital reserve to share capital conversion plan was proposed for the first half of 2024[45] - The company's 2023-2025 shareholder dividend return plan was approved at the 2024 Second Extraordinary General Meeting[42] - The company plans to issue A-shares to specific targets, with related feasibility analysis and demonstration reports approved[42] - The company granted 7.861 million restricted shares to 224 incentive recipients under the A-share restricted stock incentive plan (Phase II) on March 17, 2023[48] - The company completed the registration of 7.8305 million restricted shares for the first grant under the A-share restricted stock incentive plan (Phase II) on April 26, 2023[48] - The reserved 1.965 million restricted shares under the A-share restricted stock incentive plan (Phase II) expired on March 18, 2024[48] Related-Party Transactions - The company's actual related-party transactions in H1 2024 totaled 2.36 billion yuan, including 611.15 million yuan for purchasing raw materials and 144.50 million yuan for product sales[74] - The company's related-party transactions with AVIC Group and its subsidiaries included 1.52 billion yuan in deposits with AVIC Finance Company[74] - The company's 2024 H1 related-party transactions with AVIC Group and its subsidiaries included 84.86 million yuan for accepting labor services[74] - The company's 2024 H1 related-party transactions with AVIC Group and its subsidiaries included 2.07 million yuan for providing labor services[74] - The company's 2024 H1 related-party transactions with AVIC Group and its subsidiaries included 699.88 million yuan for accepting labor services[74] - The company's 2024 H1 related-party transactions with AVIC Group and its subsidiaries included 7.74 million yuan for providing labor services[74] - The maximum daily deposit limit with AVIC Finance Company is 27.5 billion RMB, with a deposit interest rate range of 0.205% to 4.125%[79] - The company's total deposits with AVIC Finance Company at the beginning of the period were 14.927 billion RMB, with a total deposit of 20.518 billion RMB and a total withdrawal of 27.987 billion RMB during the period, resulting in an ending balance of 7.458 billion RMB[79] Shareholder Structure - The company's total number of ordinary shareholders at the end of the reporting period was 81,436[81] - China Aviation Industry Corporation holds 1.814 billion shares, representing 65.84% of the total shares[82] - China CITIC Financial Asset Management holds 51.646 million shares, representing 1.87% of the total shares[82] - AVIC Electromechanical Systems Co., Ltd. holds 40.577 million shares, representing 1.47% of the total shares[82] - AECC Asset Management Co., Ltd. holds 28.731 million shares, representing 1.04% of the total shares[82] - Hong Kong Securities Clearing Company holds 25.757 million shares, representing 0.93% of the total shares[82] - AECC Asset Management Co., Ltd. - Special Account for Pledged Bonds holds 23.9 million shares, representing 0.87% of the total shares[82] - China Construction Bank - E Fund National Defense and Military Industry Mixed Securities Investment Fund holds 23.576 million shares, representing 0.86% of the total shares[82] Financial Instruments and Accounting Policies - The company's financial statements are prepared in accordance with Chinese Accounting Standards and the CSRC's disclosure rules[119] - The company's merger and acquisition activities are accounted for based on the fair value of identifiable net assets at the acquisition date, with any excess recognized as goodwill[127] - For non-controlling interests, the company recognizes minority shareholders' equity and minority shareholders' share of net profit separately in the consolidated financial statements[130] - The company re-measures the remaining equity at fair value when control over a subsidiary is lost, with any difference recognized in the investment income of the period[131] - The company includes the operating results and cash flows of subsidiaries from the date of obtaining control until the date of losing control in the consolidated financial statements[130] - The company adjusts the financial statements of subsidiaries acquired through non-controlling business combinations based on the fair value of identifiable net assets at the acquisition date[130] - The company classifies joint arrangements into joint operations and joint ventures, with joint operations involving shared assets and liabilities, and joint ventures involving rights to net assets[132] - For joint operations, the company recognizes its share of jointly held assets and liabilities, as well as revenue and expenses related to its share of the output[132] - The company uses the equity method to account for investments in joint ventures, following