Financial Performance - Total revenue for the year ended December 31, 2024, was RMB 132,120 million, an increase of 16.1% from RMB 113,788 million in 2023[5] - Operating income for 2024 was RMB 1,618 million, compared to an operating loss of RMB 1,937 million in 2023[6] - The annual loss for 2024 was RMB 4,798 million, a reduction of 44.5% from RMB 8,636 million in 2023[7] - Basic loss per share for the year was RMB 0.19, improved from RMB 0.37 in the previous year[6] - The group reported a net loss of RMB 4.798 billion for the year 2024[16] - The net loss attributable to shareholders was RMB 4.23 billion, a significant reduction in loss by RMB 3.96 billion year-on-year[53] Assets and Liabilities - Total assets as of December 31, 2024, were RMB 403,578 million, compared to RMB 397,534 million in 2023[8] - Non-current liabilities decreased to RMB 121,188 million in 2024 from RMB 134,969 million in 2023[10] - As of December 31, 2024, the group's current liabilities exceeded current assets by approximately RMB 94.9 billion[16] - The total assets for the airline business segment as of December 31, 2024, were RMB 261,705 million, down from RMB 267,430 million in 2023, a decrease of 2.7%[29] - The total liabilities for the airline business segment decreased to RMB 236,235 million in 2024 from RMB 242,039 million in 2023, a reduction of 2.4%[29] Revenue Breakdown - The airline business segment generated revenue of RMB 131,802 million, up from RMB 113,348 million in the previous year, indicating a growth of 15.5%[34] - Domestic revenue reached RMB 90,676 million in 2024, slightly up from RMB 90,190 million in 2023, showing a growth of 0.5%[31] - International revenue surged to RMB 37,853 million in 2024, a significant increase of 82.4% from RMB 20,750 million in 2023[31] - In 2024, the group's passenger revenue reached RMB 121.48 billion, a year-on-year increase of 16.17%, accounting for 95.80% of the group's air transport revenue[64] - Domestic passenger revenue was RMB 84.70 billion, a slight increase of 0.85%, while international passenger revenue surged to RMB 33.32 billion, up 86.93%[64] Operating Expenses - The company’s total operating expenses increased to RMB 137,005 million in 2024, compared to RMB 121,154 million in 2023[6] - The company reported an increase in aircraft fuel expenses to RMB 45,499 million in 2024, up from RMB 41,102 million in 2023[5] - Fuel costs, a major component of operating expenses, rose to RMB 45.50 billion, an increase of 10.70% year-on-year, driven by an 18.28% increase in fuel consumption[66] Capital Expenditures - Capital expenditures for the airline business segment were RMB 34,669 million in 2024, compared to RMB 27,243 million in 2023, marking an increase of 27.4%[34] - The group anticipates total capital expenditures of approximately RMB 64.445 billion for aircraft and engines over the next three years, with projected expenditures of RMB 27.736 billion, RMB 21.518 billion, and RMB 15.191 billion for 2025 to 2027 respectively[83] Market and Operational Strategy - The company plans to continue expanding its market presence and investing in new technologies to enhance operational efficiency[11] - The company is focusing on high-quality development, aiming for the strategic goal of "world-class, happy Eastern Airlines" by enhancing safety, operations, service, reform, and governance[102] - The company is strengthening core hub construction to enhance transfer and diversion capabilities, particularly at Pudong Airport[104] Risk Management and Financial Health - The board believes the group has sufficient funding sources to meet operational and capital expenditure needs for at least the next 12 months[16] - The group has unused bank credit facilities and a good credit standing with banks and financial institutions[17] - The group is actively monitoring macroeconomic conditions and geopolitical risks that could affect aviation demand and is prepared to adjust capacity and marketing strategies accordingly[86] - The group has no significant contingent liabilities as of December 31, 2024, indicating a stable financial position[82] Corporate Governance and Leadership Changes - The company has complied with the corporate governance code as of December 31, 2024, ensuring adherence to relevant regulations[115] - Liu Tiexiang was elected as a director and appointed as the general manager on October 22, 2024, and will also serve as the vice chairman starting November 8, 2024[119] - The company has seen multiple resignations, including Li Yangmin as vice chairman and general manager due to job adjustments on October 22, 2024[120] Environmental and Social Responsibility - The company has implemented sustainable aviation fuel (SAF) across multiple routes and aircraft types, promoting green operations[63] - The company has maintained a "good" rating for six consecutive years in the central unit's targeted assistance evaluation for poverty alleviation efforts[63] - The company executed special flight missions, including emergency aid flights and organ transport, demonstrating corporate responsibility[63]

Group 1 - China Eastern Airlines announced a share buyback of 2.5 million shares at a price range of HKD 2.580 to HKD 2.630, totaling HKD 6.5174 million [1] - The stock closed at HKD 2.630, reflecting a 1.94% increase, with a total trading volume of HKD 20.2767 million on that day [1] - Since February 18, the company has conducted buybacks for seven consecutive days, totaling 16.76 million shares and an aggregate amount of HKD 42.1565 million, with the stock rising 8.23% during this period [1] Group 2 - Year-to-date, the company has executed 37 buybacks, amounting to 79.9823 million shares and a total expenditure of HKD 255 million [1]

Financial Performance - Operating revenue for Q3 2024 was RMB 38,386 million, representing a 6.23% increase compared to RMB 36,136 million in the same period last year[4]. - Net profit attributable to shareholders for Q3 2024 was RMB 2,630 million, a decrease of 28.18% from RMB 3,662 million year-on-year[4]. - Net profit excluding non-recurring gains and losses for Q3 2024 was RMB 2,430 million, down 30.59% from RMB 3,501 million in the previous year[4]. - The basic earnings per share for Q3 2024 was RMB 0.12, a decline of 25.00% compared to RMB 0.16 in the same period last year[4]. - The weighted average return on equity for Q3 2024 was 14.21%, down from 14.62% in the previous year[4]. - For the first three quarters of 2024, the total operating revenue reached RMB 102,585 million, an increase of 19.7% compared to RMB 85,647 million in the same period of 2023[23]. - The total operating costs for the first three quarters of 2024 were RMB 107,472 million, up from RMB 92,643 million in 2023, indicating a rise of 15.9%[23]. - The operating profit for the first three quarters of 2024 was reported at RMB -319 million, a significant improvement from RMB -3,225 million in the same period of 2023[23]. - Total profit for the first three quarters of 2024 reached RMB 51 million, a significant improvement from a loss of RMB 3,051 million in the same period of 2023[24]. - Net profit attributable to shareholders of the parent company was a loss of RMB 138 million, compared to a loss of RMB 2,596 million in the previous year, indicating a reduction in losses by approximately 94.7%[25]. - The company reported a total comprehensive loss of RMB 375 million for the first three quarters of 2024, compared to a loss of RMB 2,634 million in the same period of 2023[25]. - Basic and diluted earnings per share for the first three quarters of 2024 were both -0.01 yuan, an improvement from -0.12 yuan in the same period of 2023[25]. Cash Flow and Assets - The net cash flow from operating activities for the year-to-date was RMB 26,377 million, showing a slight increase of 0.37% from RMB 26,281 million in the previous year[4]. - Cash and cash equivalents decreased to RMB 6,544 million as of September 30, 2024, down from RMB 12,177 million at the end of 2023, a decline of 46.2%[17]. - The cash and cash equivalents at the end of the first three quarters of 2024 were RMB 6,293 million, down from RMB 13,565 million at the end of the same period in 2023[30]. - Operating cash inflow for the first three quarters of 2024 was RMB 123,212 million, up 19% from RMB 103,553 million in the same period of 2023[26]. - The company received cash from operating activities totaling RMB 109,888 million, an increase of 17.9% from RMB 93,281 million in the previous year[26]. - Cash flow from investing activities resulted in a net outflow of RMB 11,829 million, compared to a net outflow of RMB 10,761 million in the same period of 2023[28]. - Cash flow from financing activities showed a net outflow of RMB 20,105 million, similar to a net outflow of RMB 20,128 million in the previous year[30]. - As of September 30, 2024, the total assets of China Eastern Airlines amounted to RMB 276,257 million, a decrease from RMB 282,574 million as of December 31, 2023, reflecting a decline of approximately 2.3%[18]. - The total liabilities decreased from RMB 241,251 million as of December 31, 2023, to RMB 235,438 million as of September 30, 2024, representing a reduction of about 2.3%[19]. Shareholder Information and Corporate Actions - The total number of common shareholders at the end of the reporting period is 186,678[10]. - China Eastern Airlines Group holds 8,858,963,273 shares, accounting for 39.74% of total shares[10]. - HKSCC NOMINEES LIMITED holds 4,703,650,775 shares, representing 21.10% of total shares[10]. - The company plans to repurchase shares with a total amount of RMB 5 billion to 10 billion, subject to shareholder approval[14]. - The company will complete the merger with Shanghai Jidao Aviation Management Co., which holds 589,041,096 shares (2.64% of total shares)[13]. - The company intends to increase capital in Shanghai Airlines Co., Ltd. by RMB 4.5 billion, raising its registered capital to RMB 10 billion[14]. - The company has completed a share buyback plan, accumulating a total of 152,157,306 A-shares and 152,156,000 H-shares, with a total investment of approximately RMB 9.78 billion[15]. - The company will have 1,138,952,165 A-shares released from lock-up on July 12, 2024[13]. - The company’s major shareholder, China Eastern Airlines Group, plans to increase its stake in the company by at least RMB 5 billion within 12 months[15]. - The company’s board of directors has approved the liquidation of Yijia Airlines Co., Ltd. through a merger[14]. Management Changes - The company appointed Deloitte as the domestic and international financial report auditor for the fiscal year 2024, pending shareholder approval[16]. - Liu Tiexiang has been appointed as the new General Manager of the company following the resignation of Li Yangmin[16]. Operational Performance - The company faced intensified competition in the domestic passenger market, which contributed to the decline in net profit for the reporting period[8]. - The company has increased capacity deployment and optimized route and resource allocation to improve operational performance year-to-date[8]. - The company reported an increase in accounts receivable from RMB 2,191 million as of December 31, 2023, to RMB 2,745 million as of September 30, 2024, reflecting a growth of 25.3%[17]. - The company’s inventory rose to RMB 1,824 million as of September 30, 2024, compared to RMB 1,640 million at the end of 2023, marking an increase of 11.2%[18].

Investment Rating - The report maintains a rating of "Buy" for China Eastern Airlines [2][4]. Core Views - The airline industry is recovering in 2024, with China Eastern Airlines leading in the recovery of international routes and achieving a basic recovery in fleet turnover and passenger load factor during the summer travel season. The report anticipates an upward trend in profitability as industry supply and demand recover, alongside market-driven ticket pricing and a gradual reduction in capacity growth [4]. Summary by Sections Financial Performance - In the first half of 2024, the company reported a net profit of -2.8 billion RMB, continuing to reduce losses year-on-year. The fleet size has increased by nearly 13% compared to 2019, with ASK (Available Seat Kilometers) growing by 10%. The daily aircraft utilization and passenger load factor are close to 2019 levels. Passenger revenue has increased by 3% compared to 2019, while seat revenue has grown by 1% [4][6]. Market Dynamics - The summer travel demand remains strong, with passenger traffic increasing by nearly 18% compared to 2019, and over 12% year-on-year, setting a new historical high. The company is actively restoring international routes, particularly to Japan, Southeast Asia, Europe, and Australia, with international ASK showing positive growth compared to 2019 [4][6]. Future Outlook - The report projects a downward adjustment in net profit forecasts for 2024 and 2025 to 200 million RMB and 4.67 billion RMB, respectively, while introducing a new net profit forecast of 8.8 billion RMB for 2026. The company is expected to continue its capacity reduction planning despite having a substantial order book for new aircraft, which aligns with the long-term constraints of China's airspace [4][6].

Company Overview - The company operated an average fleet of 792 passenger aircraft with an average age of approximately 9 years[15]. - The company provides domestic and approved international, regional air passenger, cargo, mail, and baggage transportation services, along with extended services[15]. - The company has established core hubs in Shanghai and Beijing, as well as regional hubs in Xi'an and Kunming, to offer quality and convenient air transportation services[15]. - The company is authorized to engage in general aviation, aircraft maintenance, and related businesses, including e-commerce and air supermarket operations[15]. - The company emphasizes a streamlined and efficient modern fleet to enhance operational capabilities[15]. - The company’s stock is listed on both the Shanghai Stock Exchange (A-shares: 600115) and the Hong Kong Stock Exchange (H-shares: 00670)[18]. - The company’s registered address is located at 66 Airport Avenue, Pudong New District, Shanghai, with a postal code of 201202[17]. - The company’s mobile application is named "Eastern Airlines," providing customers with easy access to services[17]. - The company’s service hotline is +86 95530, ensuring customer support availability[17]. Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 64,199 million, an increase of 29.6% compared to RMB 49,511 million for the same period in 2023[22]. - Operating expenses totaled RMB 67,359 million, up from RMB 54,703 million, reflecting a 23% increase year-over-year[22]. - The net loss for the period was RMB 3,099 million, an improvement from a net loss of RMB 6,584 million in the same period last year[22]. - The company reported a basic and diluted loss per share of RMB 0.12, compared to RMB 0.28 for the same period in 2023[22]. - The company’s total comprehensive loss for the period was RMB 3,295 million, compared to RMB 6,640 million in the previous year[25]. - The company reported a net loss of RMB 2,768 million for the six months ended June 30, 2024, compared to a net loss of RMB 6,258 million for the same period in 2023, reflecting an improvement of approximately 55.8%[32]. - The company’s total equity attributable to equity holders decreased to RMB 39,869 million as of June 30, 2024, from RMB 42,954 million as of December 31, 2023, a decline of about 7.2%[30]. - The company’s long-term borrowings as of June 30, 2024, amounted to RMB 7,500 million, down from RMB 14,500 million as of June 30, 2023, indicating a reduction of approximately 48.8%[34]. - The group reported a net loss of RMB 3.1 billion for the six months ending June 30, 2024[41]. Assets and Liabilities - Non-current assets amounted to RMB 256,322 million as of June 30, 2024, slightly down from RMB 259,000 million at the end of 2023[27]. - Current liabilities increased to RMB 116,808 million from RMB 106,282 million, indicating a rise in short-term financial obligations[27]. - Cash and cash equivalents decreased significantly to RMB 3,713 million from RMB 11,858 million, highlighting liquidity challenges[27]. - As of June 30, 2024, current liabilities exceeded current assets by approximately RMB 9.821 billion[41]. - The company’s total liabilities decreased to RMB 2,154 million as of June 30, 2024, down from RMB 4,601 million as of December 31, 2023, reflecting a reduction of approximately 53.3%[82]. - The company’s long-term bank loans amounted to RMB 52.748 billion, a decrease from RMB 58.022 billion as of December 31, 2023, representing a reduction of approximately 9.5%[84]. - The company’s lease liabilities from Eastern Airlines Leasing decreased to RMB 25,483 million from RMB 34,776 million, representing a reduction of 26.8%[115]. Operational Highlights - The company plans to focus on expanding its market presence and enhancing operational efficiency in the upcoming quarters[22]. - The management indicated ongoing investments in new technologies and fleet upgrades to improve service quality and operational capacity[22]. - The group achieved a total of 1.283 million safe flight hours and 507,600 takeoffs and landings in the first half of 2024, representing year-on-year increases of 22.72% and 13.66% respectively[150]. - The group launched several new international routes, including Shanghai to Riyadh and Shanghai to Marseille, enhancing its international network[154]. - The group is actively promoting sustainable aviation fuel (SAF) and has launched a new on-demand meal service to enhance customer experience[161]. Market and Revenue Insights - Domestic transportation revenue reached RMB 44,961 million, up 7.5% from RMB 41,835 million year-on-year[60]. - International transportation revenue surged to RMB 17,407 million, a significant increase of 165.5% compared to RMB 6,559 million in the previous year[60]. - The airline business segment reported a pre-tax loss of RMB 3.155 billion, while the other business segment reported a profit of RMB 168 million[52]. - The group’s total customer contract revenue was RMB 64,199 million, with passenger transport contributing RMB 59,338 million[63]. - The group anticipates continued seasonal fluctuations, with higher demand expected in the second half of the year due to holiday peaks[61]. Related Party Transactions - The company has significant related party transactions with various entities, including joint ventures and subsidiaries, reflecting its extensive operational network[97]. - The procurement of meals and cabin supplies from Eastern Airlines Food amounted to RMB 1,545 million in 2024, up 21% from RMB 1,276 million in 2023[98]. - The revenue from exclusive transportation services related to cargo operations provided by Eastern Airlines Logistics was RMB 2,371 million, a significant rise of 59% from RMB 1,487 million in 2023[104]. Employee and Operational Metrics - The group employed 83,125 employees as of June 30, 2024, primarily based in China[185]. - The average annual interest rate for capitalized interest was 3.21%, slightly down from 3.40% in the previous year[67]. - The group’s sales and marketing expenses grew by 40.00% to RMB 1.876 billion, reflecting increased travel demand[172]. Future Outlook - The group expects net cash inflows from operating activities for at least the next 12 months, considering factors such as flight recovery and major operating costs[44]. - The company continues to be the global launch customer for the domestically produced C919 aircraft, with 6 units in operation as of June 30, 2024[142]. - The group is focused on enhancing operational efficiency and cost control amidst increasing competition and high fuel prices[149].

Financial Performance - The total revenue for the six months ended June 30, 2024, was RMB 64,199 million, an increase of 29.6% compared to RMB 49,511 million for the same period in 2023[3]. - The net loss for the period was RMB 3,099 million, an improvement from a net loss of RMB 6,584 million in the same period last year[4]. - The total comprehensive loss for the period was RMB 3,295 million, compared to RMB 6,640 million in the previous year[4]. - The basic and diluted loss per share attributable to equity holders of the company was RMB (0.12), compared to RMB (0.28) for the same period in 2023[3]. - The company reported a basic loss per share of approximately RMB 2,768 million, calculated based on a weighted average of 22.291 billion shares issued[42]. - The net loss attributable to shareholders was RMB 2.768 billion, a significant reduction of RMB 3.490 billion compared to the previous year[91]. Revenue Breakdown - For the six months ended June 30, 2024, the total revenue from the aviation business segment was RMB 64,044 million, while the other business segment generated RMB 155 million[22]. - Domestic revenue reached RMB 44,961 million, up from RMB 41,835 million, indicating a growth of about 5.1% year-over-year[30]. - International revenue surged to RMB 17,407 million, compared to RMB 6,559 million in the previous year, marking an increase of approximately 165.5%[30]. - Transportation revenue reached RMB 61.709 billion, growing by 31.67% year-on-year, with passenger revenue accounting for 96.16% of total transportation revenue[98]. - International passenger revenue surged to RMB 15.397 billion, a remarkable increase of 184.18% year-on-year, driven by a 346.40% rise in passenger turnover[98]. Operating Costs - Operating expenses totaled RMB 67,359 million, up from RMB 54,703 million in the previous year, reflecting a 22.9% increase[3]. - Total operating costs for the first half of 2024 amounted to RMB 67.359 billion, reflecting a year-on-year increase of 23.14%[99]. - Aircraft fuel costs rose to RMB 23.292 billion, up 33.62% year-on-year, primarily due to increased flight hours and rising oil prices[99]. Cash Flow and Liquidity - The company’s operating cash flow for the six months ended June 30, 2024, was RMB 10.718 billion, a decrease from RMB 16.183 billion in the same period of 2023[13][14]. - The company had a net cash decrease of RMB 8.133 billion for the six months ended June 30, 2024, compared to an increase of RMB 2.471 billion in the same period of 2023[14]. - The company expects positive cash inflows from operating activities for at least the next 12 months, considering the recovery of flights and major operating costs[15]. - The company had unused bank credit facilities available, indicating sufficient liquidity for operations[15]. Assets and Liabilities - Non-current assets amounted to RMB 256,322 million as of June 30, 2024, slightly down from RMB 259,000 million at the end of 2023[5]. - As of June 30, 2024, the company's total equity was RMB 40.141 billion, down from RMB 43.463 billion as of December 31, 2023[11][12]. - The company’s total assets increased to RMB 117,394 million as of June 30, 2024, from RMB 111,028 million as of December 31, 2023[52]. - The company’s total liabilities exceeded total assets by approximately RMB 98.21 billion as of June 30, 2024[15]. - The debt-to-asset ratio increased to 85.40%, up by 0.69 percentage points from December 31, 2023[103]. Operational Efficiency - The company continues to focus on operational efficiency and cost management strategies to improve future performance[2]. - The group implemented cost control measures, resulting in a 10.44% decrease in operating costs per ton-kilometer in the first half of 2024[94]. - The overall passenger load factor improved by 9.44 percentage points to 81.21% from 71.77% year-over-year[85]. Strategic Initiatives - The company is focusing on digital transformation and has established a digital transformation leadership team to enhance operational efficiency[96]. - The company is committed to enhancing its service brand value through a focus on passenger experience and the implementation of 22 key tasks to meet diverse service needs[117]. - The company plans to increase its investment in Sichuan Airlines by RMB 1.2 billion through a combination of cash and non-cash assets[132]. Acquisitions and Investments - The group acquired the remaining 55% stake in Eastern Airlines Media Co., Ltd. for RMB 126 million, making it a wholly-owned subsidiary[17]. - The company plans to acquire a 55% stake in Eastern Airlines Media for approximately RMB 126.203 million, as approved in the board meeting on December 14, 2023[131]. - The company has completed the acquisition of 55% equity in Eastern Airlines Import and Export, which will no longer be a related party in future transactions[135]. Market Performance - The group’s operating performance improved steadily in the first half of 2024, with a significant reduction in losses year-on-year[93]. - Passenger traffic at Shanghai Pudong International Airport reached 2.34 million, a 31.30% increase compared to 2019[93]. - The group achieved a 90% recovery in passenger kilometers and revenue in the international market compared to 2019 levels[93]. Compliance and Governance - The board has implemented a governance improvement plan, with independent directors now exceeding 50% of the board composition[97]. - The company adopted the Listing Rules Appendix C3 as the code of conduct for directors and supervisors regarding securities trading, ensuring compliance with regulations[125]. - The Audit and Risk Management Committee reviewed the accounting principles and methods adopted by the group, with no dissenting opinions noted[126].

Financial Performance - The company's operating revenue for Q1 2024 was RMB 33,189 million, representing a 48.96% increase compared to RMB 22,261 million in the same period last year[4]. - The net profit attributable to shareholders was a loss of RMB 803 million, an improvement from a loss of RMB 3,803 million in the previous year[4]. - The company reported a total of 168 million in non-recurring gains and losses for the period[6]. - The basic earnings per share for the period was -0.04 yuan, an improvement from -0.17 yuan in the previous year[4]. - Net loss for Q1 2024 was RMB 931 million, an improvement from a net loss of RMB 4,036 million in Q1 2023[24]. - The total comprehensive loss for Q1 2024 was RMB 1,014 million, compared to RMB 4,100 million in Q1 2023[25]. Cash Flow and Assets - The net cash flow from operating activities decreased by 29.36% to RMB 4,738 million, down from RMB 6,665 million in the same period last year[4]. - Cash flow from operating activities generated RMB 4,738 million in Q1 2024, compared to RMB 6,707 million in Q1 2023[26]. - The cash and cash equivalents decreased to RMB 5,165 million from RMB 12,177 million, representing a decline of 57.5%[16]. - The ending balance of cash and cash equivalents for Q1 2024 was RMB 4,849 million, down from RMB 20,504 million in Q1 2023[31]. - The beginning balance of cash and cash equivalents for Q1 2024 was RMB 11,861 million, compared to RMB 18,173 million in Q1 2023[31]. - As of March 31, 2024, the total current assets of China Eastern Airlines amounted to RMB 18,905 million, a decrease of 26.9% from RMB 25,817 million on December 31, 2023[16]. - The total assets at the end of the reporting period were RMB 273,381 million, a decrease of 3.25% from RMB 282,491 million at the end of the previous year[4]. - Total assets decreased from RMB 282,576 million as of December 31, 2023, to RMB 273,381 million as of March 31, 2024[22]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 190,398[8]. - The top shareholder, China Eastern Airlines Group, holds 39.57% of the shares, totaling 8,820,552,003 shares[9]. - China Eastern Airlines' major shareholder, China Eastern Group, has cumulatively increased its holdings by 113,746,036 A-shares, accounting for 0.5103% of the total share capital[14]. - Shareholders' equity attributable to the parent company decreased to RMB 39,699 million from RMB 40,712 million[22]. Liabilities and Expenses - The total liabilities of the company as of March 31, 2024, were RMB 233,199 million, down from RMB 241,253 million on December 31, 2023, indicating a reduction of 3.3%[20]. - The company's short-term borrowings decreased to RMB 35,501 million from RMB 39,618 million, a reduction of 10.6%[19]. - Total operating costs for Q1 2024 were RMB 35,467 million, up 30% from RMB 27,234 million in Q1 2023[23]. - Research and development expenses for Q1 2024 were RMB 77 million, slightly down from RMB 87 million in Q1 2023[23]. Acquisitions and Investments - The company acquired a 55% stake in Eastern Airlines Media Co., Ltd., which is now a subsidiary, impacting the financial data for 2023[5]. - The company plans to acquire a 55% stake in Eastern Airlines Media for approximately RMB 126.203 million, with the agreement signed on January 24, 2024[14]. Other Financial Metrics - The weighted average return on equity was -1.99%, an improvement of 12 percentage points from -13.99% in the previous year[4]. - The total non-current assets were RMB 254,476 million, slightly down from RMB 256,759 million, a decrease of 0.9%[17]. - The company reported other income of RMB 1,373 million in Q1 2024, compared to RMB 945 million in Q1 2023[23]. - The company reported an increase in accounts receivable to RMB 2,644 million as of March 31, 2024, compared to RMB 2,191 million at the end of 2023, reflecting a growth of 20.6%[16]. - The company’s inventory increased to RMB 1,715 million from RMB 1,640 million, marking a rise of 4.6%[16].

Fleet and Operations - China Eastern Airlines operates a modern fleet of nearly 800 aircraft, making it one of the largest airlines in China[7]. - The fleet size reached 782 aircraft by the end of 2023, with an average age of 8.7 years[23]. - The company introduced 22 new aircraft and retired 15 aircraft in 2023, maintaining a young fleet structure[22]. - The company plans to introduce 56 aircraft from 2024 to 2026, with 22 aircraft in 2024, 47 in 2025, and 60 in 2026, while retiring 15, 36, and 26 aircraft respectively[26]. - The company signed a contract to add 100 C919 aircraft, becoming the largest user of the C919 globally[28]. - The company completed 2.282 million safe flight hours and 954,000 takeoffs and landings in 2023, maintaining overall safety stability[36]. Financial Performance - Total revenue for 2023 reached RMB 113,741 million, a significant increase from RMB 46,305 million in 2022, representing a growth of 145.0%[15]. - The net loss attributable to equity holders for 2023 was RMB (8,168) million, an improvement compared to RMB (37,356) million in 2022, indicating a reduction in losses by 78.1%[18]. - Operating income for 2023 was RMB 113,741 million, compared to RMB 46,305 million in 2022, reflecting a substantial recovery in business operations[18]. - The company reported a net loss of RMB (8,614) million for the year ended December 31, 2023, with a main business loss of RMB (318) million[17]. - The company achieved other business profits of RMB 1,598 million in 2023, contributing positively to overall financial performance[17]. - The company reported a net loss attributable to shareholders of RMB 8.17 billion, a reduction in loss of RMB 29.19 billion compared to the previous year[35]. Passenger and Cargo Traffic - The company reported a significant increase in passenger traffic, with a year-on-year growth of 20% in the first half of 2023[9]. - Total passengers carried increased by 171.97% to 115,617.54 thousand in 2023 from 42,510.46 thousand in 2022[19]. - Cargo revenue increased by 15% compared to the previous year, driven by higher demand for air freight services[9]. - Revenue ton kilometers (RTK) for cargo increased by 130.81% to 18,522.83 million in 2023 compared to 8,025.31 million in 2022[21]. - Cargo available ton kilometers (AFTK) grew by 17.80% to 7,479.14 million in 2023 from 6,349.11 million in 2022[20]. Strategic Initiatives and Future Outlook - Future outlook includes expanding international routes and enhancing digital services to improve customer experience[9]. - The company is investing in new technologies to optimize operational efficiency and reduce carbon emissions[9]. - The company is exploring strategic partnerships and potential acquisitions to strengthen its market position[9]. - The company aims to enhance its hub competitiveness by improving international transfer capabilities and optimizing service quality[41]. - The company is focusing on digital transformation to improve flight scheduling, revenue management, and marketing through big data technologies[43]. Sustainability and Environmental Initiatives - The company is committed to sustainable development and has implemented a "Carbon Peak Action Plan" to promote the deployment of Sustainable Aviation Fuel (SAF)[55]. - The company has deployed sustainable aviation fuel (SAF) on over 20 Airbus aircraft, marking its first use in commercial operations[38]. - The company completed the replacement of plastic materials for 53 types of aircraft supplies throughout the year[38]. Employee and Governance Initiatives - The company is committed to enhancing employee welfare through various initiatives, including housing projects and health care programs[38]. - The company conducted 147 training sessions with 6,361 participants in 2023, focusing on enhancing management capabilities and leadership skills[84]. - The company is enhancing its online learning platform, "Eastern Airlines Easy Learning," to provide training across various operational areas, including flight, cabin service, and marketing[84]. - The company has established a comprehensive dividend policy, aiming for cash dividends to account for at least 30% of the average distributable profit over the last three years, subject to certain conditions[89]. Market Position and Brand Value - The company was ranked 7th in the "2023 Global Airline Brand Value" by Brand Finance, highlighting its strong brand presence[37]. - The frequent flyer program "Eastern Miles" has surpassed 57 million members, indicating a strong customer base[53]. - The company is actively promoting strategic partnerships with SkyTeam members, enhancing cooperation with Delta and Air France-KLM[53]. Risk Management and Financial Strategies - The company faces significant risks from fluctuations in jet fuel prices, with a potential increase or decrease of approximately RMB 2.055 billion if average fuel prices change by 5%[56]. - The company is exploring hedging strategies to manage fuel price volatility and protect its financial performance[56]. - The company is actively enhancing its information security measures to protect against data breaches and network attacks, which could adversely affect its operations and brand image[60]. Shareholder and Corporate Governance - The company has established a voting rights delegation agreement with its major shareholder, enhancing governance and control[98]. - The company has a diverse board with members holding extensive experience in the aviation industry, including previous roles in other major airlines[110]. - The company emphasizes the importance of good corporate governance for operational development[152]. Financial Management and Audit - The company appointed PwC Zhongtian as the domestic financial report auditor and internal control auditor for 2023, with audit fees totaling RMB 11 million[151]. - The Audit and Risk Management Committee is responsible for overseeing financial reporting and internal controls, as well as assessing overall risk management[174]. - The company’s internal control system was initiated in 2004 to meet the requirements of the Sarbanes-Oxley Act, with a comprehensive risk management project launched in 2010[197].

Financial Performance - The net loss for the year 2023 was RMB 8.614 billion, a significant improvement from the net loss of RMB 39.870 billion in 2022[3] - Operating loss decreased to RMB 1.919 billion in 2023 from RMB 31.588 billion in 2022, indicating a recovery in operational performance[3] - Total comprehensive loss for the year was RMB 8.719 billion, compared to RMB 39.750 billion in the previous year[4] - The company reported a pre-tax loss of RMB 8.278 billion, down from RMB 40.114 billion in 2022, reflecting improved financial health[3] - The company reported a net loss attributable to equity holders of RMB 81.68 billion for 2023, compared to a loss of RMB 37.36 billion in 2022[28] - The net loss attributable to equity holders for 2023 was RMB 8.168 billion, significantly reduced from a net loss of RMB 37.356 billion in 2022[52] Assets and Liabilities - The total assets decreased slightly to RMB 259.070 billion in 2023 from RMB 260.390 billion in 2022[5] - Current liabilities were RMB 106.264 billion, showing a marginal decrease from RMB 106.544 billion in the previous year[6] - The company’s net current liabilities increased to RMB 80.601 billion from RMB 78.503 billion in 2022, indicating ongoing liquidity challenges[5] - Non-current liabilities decreased to RMB 135.006 billion in 2023 from RMB 149.209 billion in 2022, suggesting a reduction in long-term debt obligations[6] - The total liabilities decreased to RMB 241,270 million in 2023 from RMB 255,753 million in 2022, reflecting a reduction of approximately 5.6%[16] - The debt-to-asset ratio was 84.74%, down by 3.93 percentage points from December 31, 2022[53] - Total liabilities reached RMB 241.270 billion, with current liabilities accounting for 44.04% of total liabilities[53] Revenue and Growth - For the year ended December 31, 2023, the airline business segment reported revenue of RMB 113,348 million, while the other business segment contributed RMB 1,168 million, totaling RMB 113,741 million[13] - Domestic revenue for 2023 reached RMB 90,143 million, significantly up from RMB 34,643 million in 2022, indicating a growth of approximately 160%[18] - Customer contract revenue surged to RMB 113,505 million in 2023, compared to RMB 46,068 million in 2022, marking an increase of approximately 146%[20] - In 2023, the group's passenger revenue reached RMB 104.576 billion, a year-on-year increase of 198.75%, accounting for 96.64% of total transportation revenue[48] - Domestic passenger revenue was RMB 83.986 billion, up 174.72% year-on-year, representing 80.31% of passenger revenue[48] - International passenger revenue surged to RMB 17.825 billion, a remarkable increase of 325.93% year-on-year, making up 17.05% of passenger revenue[48] Operational Metrics - The overall fleet size reached 782 aircraft, with an average age of 8.7 years, following the introduction of 22 new aircraft and the retirement of 15[38] - The passenger load factor improved to 74.42%, up 10.72 percentage points from the previous year[34] - The total flight hours completed were 2.282 million hours, with 954,000 takeoffs and landings, maintaining overall safety stability during the rapid recovery of flights[41] - The company opened over 20 new international routes along the "Belt and Road" initiative, including routes from Shanghai Pudong to Istanbul and Cairo, with domestic, international, and regional seat kilometers recovering to 116.4%, 43.8%, and 75.0% of 2019 levels respectively[42] Costs and Expenses - The total operating cost for 2023 was RMB 121.089 billion, reflecting a year-on-year increase of 48.56%[49] - Fuel costs, a major component of operating expenses, rose to RMB 41.102 billion, an increase of 84.89% year-on-year, primarily due to a 104.23% increase in fuel consumption[49] - The group achieved a 50.26% year-on-year increase in other operating income and gains, totaling RMB 5.429 billion, driven by increased passenger travel[50] - The group’s financial expenses decreased by 20.96% year-on-year to RMB 6.982 billion, mainly due to reduced foreign exchange losses[51] Strategic Initiatives - The company plans to continue expanding its market presence and enhancing its service offerings in the coming years[17] - The company is focusing on enhancing operational efficiency and market competitiveness by optimizing its route network and improving service quality[82] - The company is committed to sustainable development, investing in energy-saving and noise-reduction technologies to comply with environmental regulations[78] - The company is exploring sustainable aviation fuel applications to reduce carbon emissions and improve environmental governance[78] Risk Management - The company faces significant risks from domestic and international economic policies and regulations, which may introduce uncertainties in future business development and operational performance[65] - Increased competition in the domestic and international aviation markets may affect the company's market share, pricing levels, and operational performance[68] - Fluctuations in jet fuel prices are a major cost factor, with a 5% change in average fuel prices potentially impacting fuel costs by approximately RMB 2.055 billion[69] - The company has significant foreign currency liabilities, primarily in USD, with a 1% change in the USD/CNY exchange rate potentially affecting total profit by RMB 297 million[71] Corporate Governance - The company has strengthened its corporate governance system, implementing various regulations and guidelines to ensure compliance with listing rules[91] - The board of directors includes Wang Zhiqing (Chairman), Li Yangmin (Vice Chairman, General Manager), and several independent non-executive directors[102] - The presence of a worker director indicates a commitment to employee representation in corporate governance[102] Future Outlook - The company plans to introduce 56 aircraft from 2024 to 2026, with 15 aircraft exiting during the same period[86] - The company is likely to discuss future strategies and performance metrics in upcoming earnings calls[102] - The company will announce the details of the 2023 Annual General Meeting, including date, time, and location, in due course[96]

Financial Performance - Operating revenue attributable to shareholders reached RMB 36,113 million, an increase of 118.92% year-on-year[4] - Net profit attributable to shareholders was RMB 3,642 million, with a basic earnings per share of RMB 0.1634[4] - Total operating revenue for the first three quarters of 2023 reached RMB 85,538 million, a significant increase from RMB 35,850 million in the same period of 2022, representing a growth of 138.0%[20] - The net profit for the first three quarters of 2023 was a loss of RMB 2,570 million, an improvement compared to a loss of RMB 29,934 million in the same period of 2022[21] - The total comprehensive loss for the first three quarters of 2023 was RMB 2,642 million, compared to a loss of RMB 29,826 million in 2022, showing a significant reduction in losses[22] - The company reported a basic and diluted earnings per share of -0.1170 yuan for the first three quarters of 2023, an improvement from -1.4897 yuan in the same period of 2022[22] Cash Flow and Liquidity - The company reported a net cash flow from operating activities of RMB 26,294 million for the year-to-date period, a significant improvement from a loss of RMB 3,201 million in the previous year[4] - Cash inflow from operating activities totaled RMB 103,192 million, compared to RMB 47,390 million in the same period of 2022, reflecting a growth of 117.0%[23] - Cash flow from operating activities generated RMB 26,294 million in the first three quarters of 2023, a turnaround from a negative cash flow of RMB 260 million in 2022[23] - The cash and cash equivalents at the end of Q3 2023 stood at RMB 13,313 million, a significant decrease of 43.4% from RMB 23,561 million at the end of Q3 2022[25] - The cash and cash equivalents net increase for the first three quarters of 2023 was negative RMB 4,228 million, compared to a positive increase of RMB 10,611 million in the same period of 2022[25] Assets and Liabilities - Total assets at the end of the reporting period were RMB 282,069 million, a decrease of 1.29% compared to the end of the previous year[4] - The total liabilities as of September 30, 2023, amounted to RMB 254,610 million, slightly down from RMB 255,641 million at the end of 2022[18] - Current assets totaled RMB 25,655 million, down from RMB 27,413 million year-over-year[14] - Cash and cash equivalents decreased to RMB 13,327 million from RMB 17,553 million[14] - The company’s long-term borrowings increased to RMB 55,019 million as of September 30, 2023, up from RMB 38,359 million at the end of 2022, indicating a rise of 43.4%[18] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 183,222[9] - The largest shareholder, China Eastern Airlines Group, holds 39.39% of the shares[9] - As of the report date, a total of 2,277,904,327 A-shares held by 19 shareholders were released for circulation[12] - The controlling shareholder plans to increase its stake in the company by investing between RMB 500 million and RMB 1 billion within 12 months starting from September 12, 2023[12] Operational Strategy - The company attributed the revenue growth to increased capacity deployment and optimized resource allocation in response to the recovery of the air passenger market[6] - The company plans to continue enhancing cost control and optimizing flight routes to further improve operational performance[6] - The company plans to purchase 100 C919 aircraft from COMAC, pending shareholder approval[12] Financial Expenses and Borrowings - The company’s financial expenses decreased to RMB 5,617 million in the first three quarters of 2023, down from RMB 7,309 million in the same period of 2022, a reduction of 23.2%[20] - In the first three quarters of 2023, China Eastern Airlines received cash from borrowings amounting to RMB 63,500 million, a decrease of 42.4% compared to RMB 110,102 million in the same period of 2022[25] - The total cash outflow from financing activities in the first three quarters of 2023 was RMB 83,582 million, down from RMB 95,057 million in the same period of 2022, reflecting a reduction of 12.1%[25] - The net cash flow from financing activities for the first three quarters of 2023 was negative RMB 20,082 million, compared to a positive RMB 15,045 million in the same period of 2022[25] Retained Earnings - The company reported a net loss of RMB 47,134 million in retained earnings as of September 30, 2023, compared to a loss of RMB 44,527 million at the end of 2022[16]