Financial Performance - Operating revenue for Q3 2022 was RMB 16,496 million, a decrease of 7.28% compared to the same period last year[5]. - Net profit attributable to shareholders was RMB -9,380 million, with a year-to-date loss of RMB -28,116 million[5]. - Total operating revenue for the first three quarters of 2022 was RMB 35,850 million, a decrease of 31.8% compared to RMB 52,501 million in the same period of 2021[25]. - Net loss for the first three quarters of 2022 was RMB 29,934 million, compared to a net loss of RMB 8,580 million in the same period of 2021[26]. - The total comprehensive income for the first three quarters of 2022 was -29,826 million RMB, compared to -8,848 million RMB in the same period of 2021, reflecting a significant decline[27]. - Basic and diluted earnings per share for the first three quarters of 2022 were both -1.4897 RMB, compared to -0.4983 RMB in the same period of 2021[27]. Cash Flow and Liquidity - The net cash flow from operating activities for the year-to-date period was RMB -260 million, representing a decrease of 102.03% compared to the previous year[5]. - The net cash flow from operating activities for the first three quarters of 2022 was -260 million RMB, a decrease from 12,828 million RMB in the same period of 2021[28]. - Cash inflow from operating activities totaled 47,390 million RMB in 2022, down from 62,295 million RMB in 2021, indicating a 24% decrease[28]. - The net cash flow from investing activities was -4,185 million RMB in 2022, worsening from -2,694 million RMB in 2021[29]. - Cash inflow from financing activities increased to 110,102 million RMB in 2022, compared to 103,157 million RMB in 2021, showing a growth of approximately 6%[30]. - The total cash and cash equivalents at the end of September 2022 were 23,561 million RMB, up from 10,832 million RMB at the end of September 2021[30]. Assets and Liabilities - Total assets at the end of the reporting period were RMB 288,095 million, a slight increase of 0.54% from the previous year[5]. - Non-current assets totaled RMB 253,345 million as of September 30, 2022, down from RMB 258,638 million as of December 31, 2021[20]. - Current liabilities increased to RMB 110,368 million as of September 30, 2022, compared to RMB 85,891 million as of December 31, 2021[20]. - Long-term borrowings rose to RMB 42,359 million as of September 30, 2022, up from RMB 28,151 million as of December 31, 2021[21]. - Total liabilities amounted to RMB 263,011 million as of September 30, 2022, compared to RMB 231,638 million as of December 31, 2021[22]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 151,072[11]. - The largest shareholder, China Eastern Airlines Group, holds 40.10% of the shares, totaling 7,567,853,802 shares[12]. - Shanghai Junyao Group intends to reduce its holdings by up to 155,915,954 shares, representing 0.826% of the total share capital[17]. - The total number of shares pledged by Donghang International Holdings (Hong Kong) reached 1.67 billion shares as of the report date[14]. Operational Highlights - The decline in operating revenue was primarily due to decreased passenger demand caused by the COVID-19 pandemic[7]. - The company reported non-operating income of RMB 123 million for the current period, with government subsidies contributing RMB 155 million[6]. - The company has signed an agreement to introduce 100 A320NEO series aircraft, pending shareholder approval[15]. - The company has set the upper limit for daily related transactions for air cargo business at RMB 9 billion for 2022, pending shareholder approval[17]. - The company reported a financial expense of RMB 7,309 million for the first three quarters of 2022, significantly higher than RMB 3,235 million in the same period of 2021[25]. Inventory and Receivables - The company reported a total of RMB 1,768 million in inventory as of September 30, 2022, slightly down from RMB 1,799 million in the previous year[19]. - The accounts receivable increased to RMB 1,263 million from RMB 974 million, reflecting a rise of approximately 29.7%[19].

Fleet and Operations - The company operates a modern fleet of 755 aircraft, with an average age of approximately 8.1 years, providing quality air transport services[11]. - The company achieved a passenger load factor of 75%, reflecting improved operational efficiency and demand recovery[9]. - The company plans to expand its international routes, focusing on key markets in Europe and North America, to enhance its global presence[11]. - The company introduced 1 new aircraft and retired 3 aircraft in the first half of 2022, continuing to optimize fleet structure[101]. - The company will introduce 33 aircraft and retire 10 aircraft in the second half of 2022, with a total of 41 aircraft planned for introduction and 21 for retirement by 2024[169]. Financial Performance - For the six months ending June 30, 2022, the company reported a significant increase in passenger traffic, with a total of 10.5 million passengers carried, representing a 150% year-over-year growth[9]. - The total operating revenue for the first half of 2022 reached RMB 30 billion, a 120% increase from the same period in 2021[10]. - Total revenue for the six months ended June 30, 2022, was RMB 19,354 million, a decrease of 44% compared to RMB 34,710 million in the same period of 2021[18]. - The company reported a net loss of RMB 19,974 million for the six months ended June 30, 2022, compared to a net loss of RMB 5,398 million in the same period of 2021[19]. - The company reported a pre-tax loss of RMB 19,995 million for the period, compared to a pre-tax loss of RMB 7,280 million in the previous year[18]. - The company reported a net loss attributable to shareholders of RMB 18.736 billion, a significant decline compared to the same period in 2021[104]. - The company’s total equity decreased to RMB 37.2 billion from RMB 57.2 billion, a decline of approximately 34.8%[21]. Revenue Breakdown - Passenger transport revenue contributed RMB 13,899 million, while cargo and mail transport revenue was RMB 3,910 million for the six months ended June 30, 2022[45]. - Domestic passenger revenue decreased to RMB 12.288 billion, a year-on-year decline of 54.67%, accounting for 88.41% of total passenger revenue[114]. - International passenger revenue increased to RMB 1.510 billion, a year-on-year increase of 23.87%, accounting for 10.86% of total passenger revenue[114]. - Cargo revenue for the first half of 2022 was RMB 3.910 billion, a year-on-year decline of 0.89%, accounting for 21.96% of total transportation revenue[114]. Operational Efficiency and Cost Management - Operating expenses totaled RMB 36,883 million, down from RMB 43,214 million year-over-year, reflecting a 14.5% reduction[18]. - The company incurred aircraft fuel costs of RMB 8,960 million, a decrease from RMB 9,773 million, reflecting an 8.3% reduction[18]. - The company achieved a simulated revenue increase of approximately RMB 380 million through quality and efficiency improvements in the first half of 2022[108]. - Fuel consumption per ton-kilometer decreased by 2.63% year-on-year in the first half of 2022[108]. Cash Flow and Financing - The company raised nearly RMB 64.1 billion through various financing channels, including the issuance of short-term financing bonds and medium-term notes, to ensure liquidity[108]. - The net cash generated from financing activities was RMB 18.314 billion, a significant increase from RMB 1.609 billion in the previous year[25]. - Operating cash flow for the six months ended June 30, 2022, was negative at RMB 1.6 billion, a significant decline from positive cash flow of RMB 8.3 billion in the prior year[24]. - The company has sufficient unused bank credit facilities as of June 30, 2022, to support its operations[27]. Strategic Initiatives and Future Outlook - Investment in new technology and digital transformation initiatives is underway to improve customer experience and operational efficiency[11]. - The management provided a positive outlook for the second half of 2022, anticipating continued recovery in passenger traffic and cargo demand[10]. - The company plans to focus on expanding its market presence and enhancing operational efficiency in the upcoming quarters[22]. - The company is exploring strategic partnerships and potential acquisitions to strengthen its market position and service offerings[11]. Sustainability and Social Responsibility - The company is committed to sustainability initiatives, aiming to reduce carbon emissions by 30% by 2030 through fleet modernization and operational improvements[11]. - The group is developing a dual-carbon action plan to achieve carbon peak and carbon neutrality goals[113]. - The company has implemented new plastic reduction standards, ceasing the provision of non-degradable plastic products on domestic flights since January 2022[114]. - The company is committed to social responsibility, contributing to rural revitalization and environmental protection initiatives[168]. Risk Management - The company faces risks related to international market expansion and investment acquisitions, which may not meet expected targets; it is implementing thorough due diligence and risk management processes for these activities[157]. - Supplier risks are present due to the limited number of suppliers for critical equipment and technology; the company regularly assesses supplier performance to mitigate these risks[158]. - The company is enhancing its risk management strategies to address unforeseen events such as natural disasters and regulatory restrictions that could impact operations and revenue[160]. Corporate Governance - The company has adopted the Corporate Governance Code and believes its governance level meets the requirements as of June 30, 2022[183]. - The audit and risk management committee reviewed the accounting principles and methods adopted by the group[183]. - The company has organized training to enhance compliance awareness among directors and senior management regarding regulatory rules[183].

Fleet and Operations - The company operates a modern fleet of 755 passenger aircraft, with an average age of approximately 8.1 years[23]. - The company introduced 1 new aircraft and retired 3 during the first half of 2022[52]. - The average fleet age was reported at 8.1 years, reflecting the company's commitment to optimizing its fleet structure[42]. - The company exited 3 old aircraft and introduced 1 A350-900 aircraft, maintaining a young fleet structure and improving overall fuel efficiency[140]. Financial Performance - The company's operating revenue for the first half of 2022 was RMB 19,354 million, a decrease of 44.24% compared to RMB 34,710 million in the same period last year[30]. - The net profit attributable to shareholders of the listed company was -RMB 18,736 million, compared to -RMB 5,208 million in the same period last year[30]. - The net cash flow from operating activities was -RMB 1,575 million, a decline of 119.05% from RMB 8,269 million in the previous year[30]. - The total assets at the end of the reporting period were RMB 289,997 million, an increase of 1.20% from RMB 286,548 million at the end of the previous year[30]. - The weighted average return on net assets was -44.56%, a decrease of 34.29 percentage points from -10.27% in the same period last year[31]. - The company's total profit for the first half of 2022 was RMB -19.995 billion, an increase in loss of RMB 12.715 billion compared to the same period last year[85]. - The company's total equity decreased to RMB 35,005 million as of June 30, 2022, down from RMB 54,910 million at the end of 2021, reflecting a decline of 36.4%[196]. Passenger and Cargo Traffic - The passenger transport volume in China for the first half of 2022 was 118 million, which is 36.7% of the level in the same period of 2019[38]. - The total turnover of civil aviation transportation in China was 29.34 billion ton-kilometers, which is 46.7% of the level in the same period of 2019[38]. - The company reported a significant decline in passenger traffic, with available seat kilometers (ASK) dropping by 48.17% to 44,535.60 million compared to the same period last year[46]. - The passenger revenue passenger kilometers (RPK) decreased by 55.62% to 27,005.95 million, with domestic routes seeing a decline of 56.17%[47]. - The total number of passengers carried fell by 57.89% to 18,675.62 thousand, with domestic routes down by 58.06%[47]. - Cargo traffic also experienced a decline, with available freight ton kilometers (AFTK) down by 36.28% to 3,274.26 million[48]. - The cargo revenue ton kilometers (RFTK) decreased by 29.83% to 1,268.02 million, with domestic routes down by 39.93%[49]. Revenue and Costs - The passenger transport revenue for the first half of 2022 was RMB 13,899 million, a decrease of 51.17%, accounting for 76.07% of the airline's revenue[78]. - The total operating costs decreased by 14.36% to RMB 33,959 million, with significant reductions in airport takeoff and landing fees by 46.36%[80]. - The company's aircraft fuel costs were RMB 8.960 billion, down 8.32% year-on-year, primarily due to a 44.91% decrease in fuel consumption[81]. - The company's sales expenses were RMB 1.022 billion, a year-on-year decrease of 39.06%[82]. - The company's financial expenses were RMB 4.266 billion, a year-on-year increase of 132.61% due to exchange losses[82]. Risk Management and Compliance - The company emphasizes the importance of risk awareness in its forward-looking statements regarding economic conditions and future plans[15]. - The company faces risks from economic conditions, geopolitical issues, and pandemic impacts, which significantly affect air transport demand and operational performance[112]. - The company is actively monitoring macroeconomic trends and adjusting capacity and market strategies to mitigate external risks[113]. - The company has not identified any violations of decision-making procedures for external guarantees[15]. - The company is enhancing its information network security projects to protect customer data and company information, including appointing a "Data Protection Officer" to comply with EU GDPR regulations[123]. Environmental and Social Responsibility - The company is committed to green and low-carbon development, implementing measures to reduce plastic usage since January 2022[65]. - The company has implemented a plastic reduction mechanism, ceasing the provision of non-degradable plastic items on domestic and EU flights since January 2022[140]. - The company actively participates in carbon trading mechanisms, including national and local pilot carbon trading, and has submitted carbon emission reports as required[138]. - The company has established a green low-carbon development task force to promote energy conservation and ecological protection initiatives[138]. - In the first half of 2022, the company invested a total of CNY 29.33 million in non-repayable aid and CNY 36.93 million in repayable aid for poverty alleviation efforts[141]. Shareholder and Corporate Governance - The company is listed on three stock exchanges: New York, Hong Kong, and Shanghai, making it the first Chinese airline to be listed in multiple locations[23]. - The company plans to issue up to 5,662,332,023 A-shares, raising a total of no more than RMB 15 billion, with China Eastern Airlines Group committing to subscribe at least RMB 5 billion[162]. - The company’s non-public issuance of shares is subject to a 36-month lock-up period for several major shareholders, including China Eastern Airlines Group and Shanghai Jidong Aviation Management Co., Ltd.[170]. - The company has not reported any changes in its share capital structure during the reporting period[163]. - The company’s stock price is influenced by various factors, and it is committed to improving corporate governance and maintaining effective communication with investors to avoid abnormal stock price fluctuations[126].

Financial Performance - The total revenue for Q1 2022 was RMB 12,665 million, representing a decrease of 5.45% compared to the same period last year[5]. - The net profit attributable to shareholders was a loss of RMB 7,760 million, with a net profit excluding non-recurring items also showing a loss of RMB 7,823 million[5]. - The net loss for Q1 2022 was RMB 8,269 million, compared to a net loss of RMB 4,113 million in Q1 2021, representing a 100.4% increase in losses[22]. - The weighted average return on equity was -16.33%, a decrease of 9.00 percentage points compared to the previous year[5]. - Total operating revenue for Q1 2022 was RMB 12,665 million, a decrease of 5.4% compared to RMB 13,395 million in Q1 2021[20]. - Total operating costs for Q1 2022 were RMB 21,821 million, an increase of 6.9% from RMB 20,416 million in Q1 2021[20]. Cash Flow - The net cash flow from operating activities was negative RMB 4,067 million, a significant decline of 1,399.36% year-on-year[5]. - In Q1 2022, the cash inflow from operating activities was RMB 14,236 million, a decrease of 17.3% from RMB 17,228 million in Q1 2021[24]. - The net cash flow from operating activities was negative RMB 4,067 million, compared to a positive RMB 313 million in the same period last year[24]. - Cash outflow for purchasing goods and services was RMB 10,319 million, an increase of 13.1% from RMB 9,125 million in Q1 2021[24]. - The cash inflow from investment activities was RMB 474 million, up from RMB 338 million in Q1 2021[24]. - The net cash flow from investment activities improved to negative RMB 784 million, compared to negative RMB 2,316 million in Q1 2021[24]. - Cash inflow from financing activities was RMB 42,000 million, down 22.9% from RMB 54,515 million in Q1 2021[25]. - The net cash flow from financing activities was RMB 4,855 million, a decrease of 51.7% from RMB 10,039 million in the same quarter last year[25]. - The total cash outflow for financing activities was RMB 37,145 million, compared to RMB 44,476 million in Q1 2021[25]. - The company reported a net increase in cash and cash equivalents of RMB 3 million, significantly lower than RMB 8,042 million in Q1 2021[25]. Assets and Liabilities - Total assets at the end of the reporting period were RMB 283,792 million, down 0.96% from the end of the previous year[6]. - Total assets as of March 31, 2022, were RMB 283,792 million, down from RMB 286,548 million at the end of 2021[19]. - Total liabilities as of March 31, 2022, were RMB 237,123 million, an increase from RMB 231,638 million at the end of 2021[19]. - Shareholders' equity attributable to shareholders decreased by 15.05% to RMB 43,641 million compared to the end of the previous year[6]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 174,945[10]. - The largest shareholder, China Eastern Airlines Group, held 40.10% of the shares, totaling 7,567,853,802 shares[10]. Operational Challenges - The decline in net profit was primarily due to decreased passenger demand caused by the COVID-19 pandemic and high fuel prices, which significantly increased operating costs[8]. - The company experienced a significant increase in accounts receivable, which rose to RMB 1,498 million from RMB 974 million year-over-year[16]. Research and Development - Research and development expenses for Q1 2022 were RMB 75 million, an increase of 70.5% from RMB 44 million in Q1 2021[20]. Earnings Per Share - The company reported a basic and diluted earnings per share of -0.41 yuan for Q1 2022, compared to -0.23 yuan in Q1 2021[22].

Financial Performance - The company's operating revenue for Q1 2022 was RMB 12,665 million, representing a decrease of 5.45% compared to the same period last year[4]. - The net profit attributable to shareholders was RMB -7,760 million, with a significant decline due to the impact of COVID-19 on passenger demand and high fuel costs[4][7]. - The net cash flow from operating activities was RMB -4,067 million, a drastic decrease of 1,399.36% year-on-year, primarily due to reduced ticket sales[4][7]. - The basic and diluted earnings per share were both RMB -0.41, reflecting a decline in operational performance[4][7]. - The weighted average return on net assets was -16.33%, a decrease of 9.00 percentage points year-on-year[4]. - Net loss for Q1 2022 was RMB 8,269 million, compared to a net loss of RMB 4,113 million in Q1 2021, reflecting a deterioration in financial performance[21]. - Operating profit for Q1 2022 was RMB -8,307 million, worsening from RMB -5,625 million in Q1 2021[20]. - Total comprehensive loss for Q1 2022 was RMB -8,241 million, compared to RMB -4,537 million in Q1 2021[22]. - The company incurred financial expenses of RMB 1,166 million in Q1 2022, slightly up from RMB 1,118 million in Q1 2021[20]. Assets and Liabilities - The total assets at the end of the reporting period were RMB 283,792 million, down 0.96% from the previous year[5]. - The total liabilities of China Eastern Airlines were RMB 237,123 million, compared to RMB 231,638 million at the end of 2021, indicating an increase in liabilities[18]. - The company's current assets totaled RMB 28,076 million, slightly up from RMB 27,910 million in the previous period[14]. - The non-current assets totaled RMB 255,716 million, down from RMB 258,638 million, showing a decrease in long-term investments[15]. - The company's cash and cash equivalents stood at RMB 12,965 million, showing a marginal increase from RMB 12,962 million[14]. - Cash and cash equivalents at the end of Q1 2022 were RMB 12,953 million, down from RMB 15,693 million at the end of Q1 2021[25]. - The accounts receivable increased significantly to RMB 1,498 million from RMB 974 million, reflecting a growth of approximately 54%[14]. Shareholder Information - The equity attributable to shareholders decreased by 15.05% to RMB 43,641 million compared to the end of the previous year[5]. - The total equity attributable to the owners of the parent company decreased to RMB 43,641 million from RMB 51,373 million, indicating a decline of about 15%[19]. - The total number of ordinary shareholders at the end of the reporting period was 174,945[8]. - The largest shareholder, China Eastern Airlines Group Co., Ltd., holds 40.10% of the shares, totaling 7,567,853,802 shares[9]. Strategic Moves and Accounting Changes - The company provided guarantees totaling RMB 3 billion for its wholly-owned subsidiaries, reflecting a strategic move to support its operations[12]. - The company has pledged 1.67 billion H shares, indicating a significant level of financial leverage[11]. - The company reported non-recurring gains and losses totaling RMB 63 million for the period[6]. - The company has implemented new accounting standards starting from 2022, affecting the financial statements from the beginning of the year[26]. Communication and Leadership - The announcement was made on April 29, 2022, reflecting timely communication with stakeholders[26]. - The board of directors includes key members such as the chairman and vice chairman, indicating a stable leadership structure[26].

Fleet and Operations - The company operates a modern fleet of 758 passenger aircraft, with an average age of approximately 7.7 years, making it one of the youngest fleets among major global airlines[14]. - The total fleet size as of December 31, 2021, was 758 aircraft, with 33 new aircraft introduced during the year[33]. - The average age of the fleet is 7.7 years, with a total of 752 aircraft, including 261 owned and 274 financed[34]. - The company achieved a daily utilization rate of 7.97 hours for the B777-300ER model, with a passenger load factor of 57.77%[36]. - The company is focusing on efficient operations around key hubs in Shanghai, Beijing, and regional centers[84]. Financial Performance - In 2021, China Eastern Airlines reported a total revenue of RMB 67,127 million, a 14.3% increase from RMB 58,727 million in 2020[26]. - The company experienced a net loss of RMB 12,214 million in 2021, compared to a net loss of RMB 11,836 million in 2020, indicating a worsening financial position[26]. - Operating expenses for 2021 were RMB 86,724 million, up from RMB 78,265 million in 2020, reflecting a 10.4% increase[26]. - The company reported a loss per share of RMB 0.73 in 2021, compared to a loss per share of RMB 0.72 in 2020[26]. - The group reported a net loss attributable to equity holders of RMB 12.214 billion in 2021, compared to a net loss of RMB 11.836 billion in 2020, resulting in a loss per share of RMB 0.73[109]. Market and Growth Strategy - The company has plans for market expansion and new product development, although specific figures and timelines were not disclosed in the conference call[8]. - The company is exploring potential mergers and acquisitions to strengthen its market position and expand its service offerings[8]. - The company aims to consolidate and increase market share in key areas while dynamically adjusting market model configurations based on pandemic and passenger flow changes[73]. - The company is actively involved in research and development of new technologies to enhance operational efficiency and customer service[11]. - The company is considering strategic acquisitions to enhance its service offerings, with a budget of 3 billion yuan earmarked for potential mergers[168]. Customer Experience and Service Quality - The company aims to enhance its service quality by focusing on precision, refinement, and detail, creating an exceptional travel experience for global passengers[14]. - The company is committed to improving service quality by enhancing integrated ground and air services, focusing on flight assurance, baggage handling, and multi-channel refund services[76]. - The company is actively enhancing onboard service quality and has improved meal services to provide a better travel experience for passengers[88]. - The new "Eastern Miles" membership system was launched, aimed at creating a customer-centric service platform[48]. - The company is focusing on improving passenger experience and operational efficiency by optimizing flight schedules and enhancing service quality[98]. Environmental and Social Responsibility - The company executed its first carbon-neutral flight and initiated approximately 780 carbon-neutral flights nationwide, aligning with dual carbon goals[48]. - The company is actively fulfilling social responsibilities and contributing to economic development while implementing a "dual carbon" strategy for green and low-carbon development[79]. - The company has been awarded the MSCI ESG A rating for two consecutive years, ranking first in the global industry[69]. - The company has executed approximately 516 flights on 13 domestic premium routes as part of its carbon-neutral flight initiative[69]. - The company is exploring sustainable development paths, including carbon peak and carbon neutrality strategies[92]. Operational Efficiency and Cost Management - The company has achieved a cumulative fuel saving of approximately 390,000 tons over the past four years, with fuel consumption per ton-kilometer decreasing for four consecutive years[68]. - The company reported a 5% reduction in operational costs due to efficiency improvements[166]. - The group’s total operating costs in 2021 were RMB 86.724 billion, an increase of 10.81% year-on-year, with fuel costs rising to RMB 20.593 billion, up 48.79% due to a 34.38% increase in average oil prices[106]. - The company is enhancing fine management by improving air traffic control coordination and production command efficiency, while also focusing on financial management and cost reduction[78]. - The company plans to optimize its debt structure and reduce the adverse effects of exchange rate fluctuations by broadening financing channels and issuing various financial instruments[98]. Strategic Leadership and Governance - The company has a strong leadership team with diverse expertise in aviation, finance, and management, which is expected to drive future growth[165]. - The company has appointed independent directors with significant backgrounds in finance and management, enhancing its governance structure[165]. - The board has been proactive in appointing members to various committees, ensuring diverse expertise in audit, risk management, and development planning[173]. - The company is committed to maintaining transparency and accountability in its financial reporting and governance practices[163]. - The company has emphasized the importance of leadership continuity and expertise in its strategic direction, particularly in the context of the aviation industry's recovery[171]. Future Outlook and Projections - The company has provided a positive outlook for the next quarter, projecting a revenue growth of 10% to 12%[168]. - Future guidance includes maintaining a profit margin of at least 20% for the next fiscal year[167]. - The company plans to invest approximately RMB 24.9 billion in capital expenditures for aircraft and engines over the next three years, with projected expenditures of RMB 9.5 billion, RMB 8 billion, and RMB 7.4 billion for 2022, 2023, and 2024 respectively[119][120]. - By 2025, China's civil aviation transport turnover is expected to reach 1,750 billion ton-kilometers, with passenger transport volume projected at 930 million people[91]. - The company aims to enhance its core competitiveness and financial stability through the private placement, which reduces debt and improves capital structure[147].

Financial Performance - In 2021, China Eastern Airlines reported a net profit attributable to shareholders of RMB -12.214 billion, indicating a significant impact from the pandemic on operational performance[6]. - The company did not declare a cash dividend for 2021 due to negative distributable profits, as per the relevant provisions of the Company Law and Articles of Association[6]. - In 2021, the company's operating revenue reached RMB 67,127 million, an increase of 14.48% compared to RMB 58,639 million in 2020[24]. - The net profit attributable to shareholders was RMB -12,214 million in 2021, compared to RMB -11,835 million in 2020, indicating a slight deterioration[24]. - The cash flow from operating activities improved significantly to RMB 5,692 million in 2021, up 370.02% from RMB 1,211 million in 2020[24]. - The total assets of the company at the end of 2021 were RMB 286,548 million, a 1.47% increase from RMB 282,408 million at the end of 2020[24]. - The basic earnings per share for 2021 was -0.7272 yuan, slightly worse than -0.7226 yuan in 2020[25]. - The weighted average return on equity decreased to -25.03% in 2021 from -19.60% in 2020, reflecting a decline of 5.43 percentage points[25]. - The company's operating profit for 2021 was RMB -17.788 billion, a decline from RMB -16.801 billion in the previous year, primarily due to increased operating costs exceeding revenue growth[89]. - The company reported operating revenue of RMB 67,127 million, an increase of 14.48% compared to the previous year[73]. - The company's operating costs rose to RMB 80,041 million, reflecting a year-on-year increase of 13.05%[73]. - Passenger revenue reached RMB 54,105 million, up 10.13% year-on-year, accounting for 83.84% of total airline transportation revenue[76]. - Cargo revenue increased significantly by 69.74% to RMB 8,309 million, representing 12.88% of total airline transportation revenue[76]. - The company’s financial expenses rose to RMB 38,800 million, an increase of 48.26% due to debt restructuring and increased interest expenses[83]. - The company’s R&D expenses increased by 78.98% to RMB 315 million, indicating a focus on innovation[73]. Operational Performance - As of the end of 2021, the company operated a modern fleet of 758 passenger aircraft, with an average fleet age of approximately 7.7 years, making it one of the youngest fleets among major global airlines[15]. - The company has a strong focus on enhancing customer experience and operational efficiency as part of its strategic objectives[15]. - The company experienced a net cash flow from operating activities of RMB 7,956 million in Q2 2021, indicating strong operational performance during that period[30]. - The available seat kilometers (ASK) increased by 5.67% to 160,690.39 million in 2021, with domestic routes up by 15.82% and international routes down by 76.06%[34]. - Passenger traffic measured in revenue passenger kilometers (RPK) rose by 1.43% to 108,803.69 million, with domestic routes increasing by 10.81% while international routes decreased by 83.14%[34]. - The total number of passengers carried increased by 6.00% to 79,099.06 thousand, with domestic passengers up by 9.06% and international passengers down by 88.06%[34]. - The cargo available ton kilometers (AFTK) grew by 30.68% to 9,077.33 million, with international routes seeing a significant increase of 42.95%[35]. - The cargo revenue ton kilometers (RFTK) surged by 54.24% to 3,393.40 million, with international routes increasing by 77.73%[35]. - The company maintained a safety flight record of 1.755 million hours and 756,000 takeoffs and landings in 2021, with increases of 13.2% and 12.4% year-on-year[46]. - The company improved its flight punctuality rate to 88.6%, surpassing the average level of the civil aviation industry[54]. - The company reported a decrease in passenger load factor to 67.71%, down by 2.83 percentage points from the previous year[34]. - The revenue per passenger kilometer increased by 7.93% to RMB 0.531, with international routes seeing a significant rise of 120.47%[34]. Strategic Initiatives - The company aims to build a world-class modern aviation comprehensive service integrator, focusing on precision, delicacy, and detail in service delivery[15]. - The company has committed to long-term development strategies that prioritize shareholder interests despite the current financial challenges[6]. - The company plans to invest approximately RMB 249 billion in aircraft and related equipment over the next three years, with expected capital expenditures of RMB 95 billion, RMB 80 billion, and RMB 74 billion for 2022 to 2024 respectively[106]. - The company aims to enhance its market control through the development of dual core hubs in Beijing-Shanghai and regional hubs in Xi'an and Kunming, while focusing on digital transformation and green development[129]. - The company is committed to digital transformation and innovation, implementing its "14th Five-Year" information and technology innovation plan[136]. - The company will focus on improving service quality by enhancing the overall service brand and ensuring integrated service requirements are met[135]. - The company is actively optimizing capacity deployment and enhancing marketing efforts to improve passenger load factors and unit revenue in response to rising fuel prices[149]. Risk Management and Governance - The company emphasizes the importance of risk awareness in its forward-looking statements regarding economic conditions and future operational plans[6]. - The company is enhancing its risk management framework to address potential supply chain disruptions from key suppliers in the aviation industry[155]. - The company is committed to improving information security to protect customer data and maintain operational integrity against potential cyber threats[153]. - The company emphasizes good corporate governance to enhance investor confidence and ensure compliance with regulatory requirements[160]. - The company maintains a strict compliance framework for related party transactions, ensuring fairness and transparency without harming the interests of minority shareholders[164]. - The company has established a robust governance structure, including a board of directors and supervisory board, to ensure independent operations[173]. Market Outlook - The company anticipates a "slow recovery" in the aviation market due to ongoing pandemic uncertainties and geopolitical tensions[130]. - The company faces intensified competition in the domestic and international aviation markets due to the opening of the domestic aviation market and increased capacity from international airlines[147]. - The company anticipates that by 2025, China's civil aviation transport turnover will reach 1,750 billion ton-kilometers, with passenger transport volume at 930 million[127]. - Fluctuations in international oil prices significantly impact the company's fuel costs; a 5% change in average fuel prices could result in a cost variation of approximately RMB 1.03 billion[148]. - The company has significant foreign currency liabilities, primarily in USD; a 1% change in the USD/RMB exchange rate could substantially affect net profit and other comprehensive income[150]. Social Responsibility - The company was recognized as an advanced collective in poverty alleviation efforts, reflecting its commitment to social responsibility[60]. - The company was rated MSCI ESG A grade for two consecutive years, ranking first in the global industry[60]. - The company actively participates in carbon trading markets and has executed China's first carbon-neutral flight, showcasing its commitment to green development[59]. - The company is committed to fulfilling its social responsibilities and advancing its "dual carbon" strategy for sustainable development[139].

Financial Performance - The total operating revenue for the third quarter was RMB 17,791 million, an increase of 3.61% compared to the same period last year[3]. - The net profit attributable to shareholders was RMB -2,954 million, reflecting a significant decline due to the impact of COVID-19 on passenger demand and rising fuel prices[3][6]. - The net profit attributable to shareholders for the year-to-date period was RMB -8,162 million, indicating ongoing challenges in the market[3]. - Net profit for the first three quarters of 2021 was a loss of RMB 8,580 million, an improvement from a loss of RMB 9,681 million in the same period of 2020[18]. - The basic and diluted earnings per share for the third quarter were both RMB -0.1804, worsening from RMB -0.0344 in the same period last year[3][6]. - The company reported a basic earnings per share of -0.4983 yuan, an improvement from -0.5608 yuan in the previous year[19]. Cash Flow and Liquidity - The net cash flow from operating activities for the year-to-date period was RMB 12,828 million, slightly down from RMB 12,989.80 million in the previous year[3][6]. - The company reported cash and cash equivalents of RMB 10,844 million as of September 30, 2021, an increase from RMB 7,663 million at the end of 2020[14]. - Cash flow from operating activities generated RMB 12,828 million, a significant increase compared to RMB 98 million in the first three quarters of 2020[20]. - The net cash flow from investment activities was -2,694 million, a decrease of 5,530 million compared to the previous period[21]. - The total cash inflow from financing activities was 103,157 million, an increase from 82,549 million in the prior period[21]. - The net cash flow from financing activities was -6,956 million, a decrease of 13,167 million compared to the previous period[21]. - The cash inflow from borrowing was 102,081 million, an increase from 82,539 million in the previous period[21]. - The cash outflow for debt repayment was 92,259 million, compared to 53,662 million in the prior period[21]. - The cash inflow from other financing activities was 792 million, significantly higher than 10 million in the previous period[21]. - The cash inflow from investment activities totaled 6,142 million, an increase from 152 million in the prior period[21]. - The cash flow from exchange rate changes had a minor impact of 3 million, compared to -23 million in the previous period[21]. Assets and Liabilities - The total assets at the end of the reporting period were RMB 285,468 million, representing a 1.08% increase from the previous year[4]. - The total current assets increased to RMB 26,449 million from RMB 22,498 million year-over-year[14]. - The company reported a decrease in fixed assets to RMB 92,463 million from RMB 97,681 million year-over-year[14]. - The company’s long-term equity investments stood at RMB 2,329 million as of September 30, 2021, down from RMB 2,387 million[14]. - The company’s total non-current assets amounted to RMB 238,065 million, reflecting a decrease from the previous year[14]. - Total liabilities increased to RMB 236,376 million, up from RMB 225,496 million year-over-year[16]. - The company's equity attributable to shareholders decreased to RMB 44,891 million from RMB 54,007 million in the previous year[16]. Shareholder Information - The company reported a total of 181,305 ordinary shareholders at the end of the reporting period[7]. - The largest shareholder, China Eastern Airlines Group Co., Ltd., holds 5,072,922,927 shares, accounting for 30.97% of the total shares[8]. - As of the end of the reporting period, China Eastern Airlines International Holdings (Hong Kong) Limited has pledged a total of 145 million H shares[9]. Government Support and Investments - The company received government subsidies amounting to RMB 77 million during the quarter, contributing to its financial performance[5]. - The company plans to issue up to 249,493,087.5 A shares to its controlling shareholder, China Eastern Airlines Group, raising up to RMB 10.828 billion[11]. - The estimated upper limit for exclusive operating transactions with China Cargo Airlines for 2021 and 2022 was adjusted to RMB 9 billion and RMB 8 billion, respectively[10]. - The company signed an agreement to transfer assets worth RMB 123.412 million to Eastern Airlines Food Investment Co., Ltd.[10]. Operational Efficiency - The company’s cash flow from operating activities showed improvement, indicating a positive trend in operational efficiency[12]. - Total operating revenue for the first three quarters of 2021 reached RMB 52,501 million, a 24.0% increase from RMB 42,300 million in the same period of 2020[17]. - Total operating costs increased to RMB 67,880 million, up 14.9% from RMB 59,060 million year-over-year[17]. - Research and development expenses were RMB 192 million, slightly down from RMB 193 million in the same period of 2020[17]. - The company plans to continue expanding its market presence and investing in new technologies to enhance operational efficiency[17].

Fleet and Operations - The company operates a modern fleet of 749 aircraft with an average age of approximately 7.4 years, including 9 business jets[12]. - The company provides domestic and approved international passenger, cargo, mail, and baggage transportation services, along with extended services[12]. - The company focuses on providing high-quality and convenient air transportation services centered around key hubs in Shanghai, Beijing, Xi'an, and Kunming[12]. - The company emphasizes a streamlined and efficient operation model to enhance service delivery[12]. - The group operates primarily in the aviation business segment, which includes passenger, cargo, and postal services[32]. - The airline segment reported revenue of RMB 34,611 million, while the other business segment generated RMB 99 million, leading to a total revenue of RMB 34,710 million[34]. - The airline segment's revenue from domestic operations was RMB 29,764 million, while international operations generated RMB 4,743 million[40]. - The company executed 48,450 unconventional passenger flights in the first half of 2021, enhancing cargo capacity through the "passenger-to-cargo" flight strategy[106]. Financial Performance - The mid-term financial performance for the six months ending June 30, 2021, was reviewed and approved by the board on August 30, 2021[10]. - The mid-term financial results do not necessarily predict the company's full-year and future performance[11]. - The company's revenue for the six months ended June 30, 2021, was RMB 34,710 million, a 37.7% increase from RMB 25,159 million in the same period of 2020[21]. - The net loss for the same period was RMB 5,398 million, an improvement from a net loss of RMB 9,072 million in the prior year[22]. - Operating expenses totaled RMB 43,214 million, up from RMB 35,941 million in the previous year, with significant increases in aircraft fuel costs and salaries[21]. - The company reported a pre-tax loss of RMB 7,280 million, compared to a pre-tax loss of RMB 12,033 million in the same period last year[21]. - The basic and diluted loss per share attributable to equity holders of the company was RMB 0.32, improved from RMB 0.52 in the prior year[21]. - Total comprehensive loss for the period was RMB 5,650 million, compared to RMB 9,343 million in the previous year[22]. - The company reported a significant increase in capital expenditures, with a total of RMB 6,131 million for the six months ended June 30, 2021, compared to RMB 6,347 million for the same period in 2020[41]. - The company reported a net cash flow from operating activities of RMB 8,269 million for the six months ended June 30, 2021, a significant improvement compared to a net cash outflow of RMB 6,720 million in the same period of 2020[26]. - The company recorded financial income of RMB 950 million, a significant increase from RMB 69 million in the same period of 2020[21]. - The company reported a net loss attributable to equity holders of approximately RMB 5,208 million, resulting in a basic loss per share of RMB 0.32 based on a weighted average of 16,379 million shares issued[54]. Assets and Liabilities - As of June 30, 2021, total assets amounted to RMB 261,744 million, slightly down from RMB 262,152 million as of December 31, 2020[23]. - Non-current liabilities increased to RMB 145,527 million from RMB 125,688 million, primarily due to an increase in borrowings from RMB 30,745 million to RMB 51,444 million[24]. - The total equity attributable to equity holders decreased to RMB 50,103 million from RMB 59,154 million, reflecting a loss during the period[25]. - The company’s total liabilities increased to RMB 200,059 million from RMB 184,842 million, reflecting a higher debt level[23]. - The current liabilities totaled RMB 93,107 million, down from RMB 99,808 million, indicating a reduction in short-term obligations[23]. - The company’s total liabilities increased to RMB 100,317 million as of June 30, 2021, compared to RMB 87,895 million as of December 31, 2020, reflecting a rise of 14%[64]. - The company’s total interest-bearing debt as of June 30, 2021, was RMB 1,962.73 billion, compared to RMB 1,841.68 billion as of December 31, 2020, reflecting a significant increase[124]. Market Strategy and Future Outlook - The company has a strategic focus on expanding its market presence and enhancing operational efficiency[12]. - The company plans to continue expanding its market presence and enhancing operational efficiency in the upcoming quarters[21]. - The management remains optimistic about recovery trends in the aviation sector and is adjusting strategies accordingly[21]. - The company continues to explore market expansion and new strategies to enhance operational efficiency and revenue growth[50]. - The company anticipates seasonal fluctuations, with typically lower performance in the first half of the year compared to the second half[45]. - The company plans to continue expanding its domestic routes while addressing the challenges in international travel due to ongoing global conditions[98]. - The company is advancing a non-public stock issuance project with a capital increase of RMB 10.8 billion from its controlling shareholder, enhancing cash flow and reducing debt ratios[111]. - The company is implementing a five-year plan for key domestic route networks as part of its "14th Five-Year Plan" to enhance market positioning[109]. Risk Management and Compliance - The company faces risks related to the economic environment and international trade relations, which could adversely affect its operational performance and financial condition[139]. - The company acknowledges potential volatility in stock prices due to various factors, including macroeconomic conditions and investor sentiment, and is committed to improving corporate governance and communication with investors[150]. - The company is enhancing its safety management capabilities and emergency response systems to ensure continuous safe operations[140]. - The company is actively enhancing its information security projects, establishing a robust security management platform, and deepening strategic cooperation with external security authorities[147]. - The company has strengthened compliance awareness among directors and senior management through training and systematic organization of regulatory rules[172]. - The company adopted the Corporate Governance Code and confirmed compliance with its provisions as of June 30, 2021[172]. Shareholder Structure - The company has a significant ownership structure, with China Eastern Airlines Group holding 30.97% directly and an additional 18.82% indirectly through subsidiaries as of June 30, 2021[75]. - The ownership structure indicates significant control by major shareholders, with China Eastern Airlines Group and Donghai International holding substantial stakes[165][167]. - As of June 30, 2021, the total number of shares is 16,379,509,203, with A shares accounting for 68.39% and H shares for 31.61%[162]. Related Party Transactions - The company is engaged in various related party transactions, including services from joint ventures and associates, which are essential for operational efficiency[76]. - The company reported a significant increase in related party transactions, with procurement of products and services from KLM totaling RMB 30 million in 2021, compared to RMB 186 million in 2020, reflecting a decrease of approximately 83.87%[80]. - The adjusted annual transaction cap for passenger cargo business with China Cargo Airlines is set at RMB 9 billion for 2021 and RMB 8 billion for 2022, approved by the board and shareholders[181]. - The adjusted annual transaction cap for cargo logistics services with Eastern Airlines Logistics is set at RMB 450 million for 2021 and RMB 460 million for 2022[182]. Environmental and Social Responsibility - The company is actively participating in international and domestic discussions on climate governance, planning pathways for carbon peak and carbon neutrality[158]. - The company is committed to rural revitalization, linking poverty alleviation efforts with rural development initiatives[158]. - The company is focusing on green and low-carbon development, actively engaging in discussions to promote sustainable practices[158].