香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何 部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 （在中華人民共和國註冊成立的股份有限公司） （股份代號：00696） 持續關連交易： 訂立算力服務合同 於二零二五年八月二十九日，本公司與中航信雲數據訂立算力服務合同，據此， 中航信雲數據同意向本公司提供算力服務，期限為自二零二五年九月一日起至二 零二六年八月三十一日止。 民航信息集團為本公司發起人及主要股東，於本公告日期持有本公司已發行股本 的約29.55%。中航信雲數據為民航信息集團的全資附屬公司，故為本公司的關連 人士。因此，根據上市規則，算力服務合同項下擬進行的交易構成本公司的持續 關連交易。 由於參考算力服務合同之年度上限計算的最高適用百分比率超過0.1%但低於 5%，因此，根據上市規則第14A章，有關交易需遵守申報、年度審閱及公告的規 定，但獲豁免遵守獨立股東批准的規定。 1. 緒言 於二零二五年八月二十九日，本公司與中航信雲數據訂立算力服務合同，據 此，中航信雲數據同意向本公司提供算力服務 ...

Core Viewpoint - Daiwa's report indicates a gradual recovery for China Civil Aviation Information Network (00696), expressing optimism about its system integration business, but anticipates a slow recovery for international airlines. Revenue forecasts for 2025 to 2027 have been lowered by 4% to 5% due to slower-than-expected tourism recovery. Earnings per share estimates for 2025 to 2027 have been reduced by 16% to 17% reflecting underperformance in the first half of 2025. The "Buy" rating is maintained, with the target price adjusted from HKD 13.5 to HKD 13 [1] Revenue and Earnings Forecast - Revenue forecasts for 2025 to 2027 have been reduced by 4% to 5% due to slower tourism recovery [1] - Earnings per share estimates for 2025 to 2027 have been lowered by 16% to 17% reflecting disappointing performance in the first half of 2025 [1] Business Performance and Cost Management - The management noted that several changes in the post-pandemic period have impacted recent profitability, including low processing volumes from international airlines, which previously had higher average prices and profit margins compared to domestic airlines [1] - System integration business contributes approximately 20% to revenue (down from double-digit figures pre-pandemic) [1] - Employee costs are projected to exceed RMB 2 billion for 2023 to 2024, compared to an average of RMB 1.8 billion from 2017 to 2019 [1] Operational Leverage and Cost Control - Despite the revenue forecast adjustments, the company retains significant operational leverage potential, as fixed costs account for 60% to 70% of total operating costs [1] - Daiwa emphasizes that management has intensified cost control efforts, particularly regarding employee costs, to enhance profitability [1]

Group 1 - The core viewpoint of the report is that China Civil Aviation Information Network (00696) is experiencing a gradual recovery, with optimism regarding its system integration business, but a slow recovery for international airlines is anticipated [1] - The revenue forecast for the company from 2025 to 2027 has been lowered by 4% to 5% due to slower-than-expected tourism recovery [1] - The earnings per share estimates for 2025 to 2027 have been reduced by 16% to 17% to reflect underperformance in the first half of 2025 [1] Group 2 - The management indicated that several changes in the post-pandemic period have negatively impacted recent profitability, including low processing volumes from international airlines, which previously had higher average prices and profit margins compared to domestic airlines [1] - The revenue contribution from the system integration business is approximately 20%, down from double-digit figures before the pandemic [1] - Employee costs are projected to exceed 2 billion RMB for 2023 to 2024, compared to an average of 1.8 billion RMB from 2017 to 2019 [1] Group 3 - Despite the adjustments to revenue forecasts, the company’s future operational leverage potential is reaffirmed, as fixed costs account for 60% to 70% of total operating costs [1] - The management has intensified cost control measures, particularly regarding employee costs, to enhance profitability [1]

Core Viewpoint - China Civil Aviation Information Network Co., Ltd. (CAVIC) reported a revenue decline of 3.6% year-on-year for the first half of 2025, while net profit increased by 5.9%, highlighting a contrast between revenue drop and profit growth amid a recovering domestic aviation market [1][2][4]. Revenue Performance - CAVIC's total revenue for the first half of 2025 was approximately 3.895 billion yuan, with significant contributions from various business segments [1][2]. - The aviation information technology service revenue was about 2.313 billion yuan, accounting for 59.4% of total revenue, showing a growth of 2.1% year-on-year [2]. - Settlement and clearing service revenue reached approximately 312 million yuan, up 12.4% year-on-year, while technical support and product revenue surged by 30.4% to 385 million yuan, marking it as a performance highlight [2]. - In contrast, the system integration segment saw a dramatic decline of 38.5%, with revenue around 418 million yuan, primarily due to slowed project construction and a high base effect from previous periods [2][3]. Market Dynamics - The operational data indicates a structural divergence influenced by market conditions, with domestic passenger transport volume exceeding pre-pandemic levels, while international routes lagged behind [3]. - The total passenger transport volume in the domestic civil aviation market for the first half of 2024 was approximately 350 million, reflecting a year-on-year growth of 23.5% [3]. Cost and Profitability - CAVIC's total operating costs for the first half of 2025 were about 2.428 billion yuan, down 4.2% year-on-year, with significant reductions in depreciation and amortization expenses by 17.6% and system integration project costs by 52.1% [3]. - The company reported a reversal of credit impairment losses amounting to 177 million yuan, indicating improved customer payment conditions and contributing to profit performance [3][4]. Competitive Positioning - CAVIC's strong market position is attributed to its deep integration into China's civil aviation industry rules and infrastructure, operating the central reservation and inventory control systems for all commercial airlines in China [5][6]. - The company plays a crucial role similar to the International Air Transport Association's (IATA) settlement system in China, enhancing its bargaining power and market share [6][8]. Technological Advancements - CAVIC is actively participating in global aviation industry standards while also developing unique solutions tailored to the Chinese market, such as the deployment of its APP departure system in 182 overseas airports [6][7]. - The company has implemented RFID baggage tracking systems in over 70 airports and facial recognition self-service platforms in 45 airports, showcasing its technological capabilities [7]. Financial Advantages - CAVIC benefits from favorable tax rates as a high-tech enterprise, with an effective tax rate lower than that of international competitors, providing additional support to its net profit [7][8]. - As of June 2025, the company had over 6 billion yuan in net cash, contrasting with international peers that carry significant debt burdens [7].

Core Viewpoint - *ST Rock (600696) reported a significant decline in revenue and a negative net profit for the first half of 2025, indicating ongoing financial struggles and operational challenges [1] Financial Performance Summary - Total revenue for the first half of 2025 was 28.25 million yuan, a decrease of 85.22% year-on-year [1] - The net profit attributable to shareholders was -67.77 million yuan, an increase of 12.42% compared to the previous year [1] - The gross margin was 51.16%, down 21.99% year-on-year, while the net margin was -272.82%, a decrease of 624.5% [1] - The total of selling, administrative, and financial expenses reached 44.17 million yuan, accounting for 156.35% of total revenue, an increase of 87.28% year-on-year [1] Cash Flow and Operational Insights - The net cash flow from operating activities increased by 110.59%, attributed to a focus on business collections, staff reductions, and extended payment terms [2] - The company experienced a significant decrease in sales revenue due to reduced liquor sales, impacting overall financial performance [3] Cost Structure and Expense Analysis - Operating costs decreased by 79.03% due to lower liquor sales [3] - Tax expenses increased by 84.27% due to consumption tax from the auction of inventory [3] - Selling expenses dropped by 91.04% as a result of reduced advertising and market investments [3] - Management expenses fell by 54.2% due to a reduction in the management team [3] - Financial expenses rose by 24.91% due to increased overdue interest on loans [3] Investment and Return Metrics - The company's historical return on invested capital (ROIC) over the past decade has been weak, with a median of 4.31% [3] - The company has reported losses in 6 out of 31 annual reports since its listing, indicating a challenging investment profile [3] Inventory and Cash Position - The ratio of cash to current liabilities is only 1.91%, and the average operating cash flow to current liabilities over the past three years is 16.07% [3] - Inventory levels have reached 171.87% of revenue, raising concerns about inventory management [3]

Core Viewpoint - The recent launch of the "Surprise Number" precise delay insurance by the company has faced significant consumer backlash due to its stringent claim conditions, leading to accusations of misleading marketing and likening it to a gambling game [1][7][9]. Product Details - The insurance product is priced at 9.9 yuan and offers a 300 yuan allowance if the flight delay matches a randomly set number of minutes [1][3]. - The product's claim conditions require the actual flight delay to exactly match the predetermined "Surprise Number" for compensation, which many consumers found misleading [3][5]. Consumer Reactions - Numerous consumers have expressed frustration on social media, stating that the critical information regarding the claim conditions is easily overlooked, leading to feelings of being misled [5][7]. - Complaints on platforms like Black Cat Complaints highlight instances where consumers believed they qualified for compensation based on their delay times, only to find discrepancies with the app's reported delay [5][9]. Company Response - The company has acknowledged the feedback and has decided to discontinue the "Surprise Number" product due to its negative impact on user experience [8][9]. - Customer service representatives indicated that the product was intended to provide more flexible delay compensation but recognized the need for improvement based on user feedback [8][9]. Industry Context - The "Surprise Number" insurance is underwritten by Sunshine Property & Casualty Insurance, with the activity being facilitated by the company in collaboration with a licensed insurance provider [9]. - Experts have raised concerns about the legality and consumer protection aspects of such precise delay insurance products, suggesting that regulatory clarity is needed in the industry [9]. Company Background - The company, known for its comprehensive travel services, is a subsidiary of China Civil Aviation Information Network Co., Ltd., which provides essential information services to major airlines and airports in China [11][12]. - The platform has been expanding its services, recently launching a direct sales feature for airline tickets, enhancing user experience by allowing price comparisons across multiple airlines [11][12].

Core Viewpoint - The recent launch of the "Surprise Number" precise delay insurance by the company has faced significant consumer backlash due to its stringent claim conditions, leading to accusations of misleading marketing and likening it to a gambling game [1][7]. Group 1: Product Details - The insurance product costs 9.9 yuan and offers a 300 yuan allowance if the flight delay matches a randomly set number of minutes [1][2]. - The product's promotional materials emphasize the need for the actual delay time to match the "Surprise Number" exactly, which is presented in smaller font compared to the payout amount [2][5]. - The product was designed to provide flexible delay protection for travelers, but user feedback indicated it negatively impacted their travel experience [7]. Group 2: Consumer Reactions - Many consumers expressed frustration over the product's misleading nature, with some stating they did not fully understand the terms before purchasing [2][5]. - Complaints on social media and consumer platforms highlighted instances where users felt cheated due to discrepancies in reported delay times [5][7]. Group 3: Company Response and Future Actions - In response to the criticism, the company has decided to discontinue the "Surprise Number" product and is committed to improving its offerings based on user feedback [7]. - The company aims to enhance its product and service experience for travelers moving forward [7]. Group 4: Industry Context - The "Surprise Number" insurance is underwritten by Sunshine Property & Casualty Insurance, with the activity being facilitated by the company in collaboration with a licensed insurance provider [7]. - The insurance product raises concerns regarding consumer rights and the ethical implications of such precise delay insurance offerings, prompting calls for regulatory clarity in the industry [8].

Core Viewpoint - The recent launch of the "Surprise Number" precise delay insurance by the company has faced significant consumer backlash due to its stringent claim conditions, leading to accusations of misleading marketing and likening it to a gambling game [1][7]. Product Details - The insurance product is priced at 9.9 yuan and offers a 300 yuan allowance if the flight delay matches a randomly set number of minutes [1][2]. - The product's interface allows for the purchase of multiple policies, claiming that the allowance can double to 600 yuan [2]. - The conditions for receiving the allowance require the actual flight delay to match the announced "Surprise Number" exactly, which many consumers found misleading [2][7]. Consumer Reactions - Numerous consumers have expressed frustration, stating that critical information regarding the claim conditions is easily overlooked, leading to feelings of being misled [5]. - Complaints on platforms like Black Cat Complaints highlight instances where consumers believed they qualified for compensation, only to find discrepancies in the timing reported by the app [5][7]. Company Response - The company has acknowledged the feedback and has decided to discontinue the "Surprise Number" product due to its low payout rate and negative consumer experiences [7]. - The customer service team emphasized that the product was intended to provide flexible delay coverage but recognized the need for improvement based on user feedback [7]. Industry Context - Experts have raised concerns about the legality and consumer protection aspects of such precise delay insurance products, suggesting that regulatory clarity is needed [8]. - The company, as part of China Civil Aviation Information Network Co., Ltd., has been expanding its service offerings, including a new direct sales platform for airline tickets [10][12].

Core Viewpoint - The "Surprise Number" activity by the travel app "Hanglv Zongheng" has faced significant consumer complaints due to misleading claims regarding flight delay insurance, making it extremely difficult for users to receive compensation [1][3][6]. Group 1: Activity Details - The activity, underwritten by Sunshine Insurance, required users to pay 9.9 yuan to participate, with the promise of a 300 yuan allowance if their flight delay matched a randomly set number in whole minutes [3][6]. - The actual compensation conditions were very strict, requiring the delay to be exactly equal to the specified number of minutes, down to the second, which many consumers misunderstood [3][10]. Group 2: Consumer Reactions - Many consumers expressed frustration, feeling misled by the promotional claims, with comments indicating that the activity felt more like a lottery than a legitimate insurance product [6][10]. - The probability of receiving compensation was calculated to be approximately 0.00009, indicating that it was more difficult than winning a lottery [10]. Group 3: Company Background - Hanglv Zongheng, developed by China Civil Aviation Information Network Co., Ltd., has over 100 million active users and is often compared to a "civil aviation version of 12306" due to its extensive user base and data accuracy [12][13]. - Despite its strong market position, the company faced backlash due to the "Surprise Number" activity, which has since been taken down without an official response from the involved parties [14]. Group 4: Industry Implications - The incident highlights a concerning trend in the insurance industry where low-cost products may exploit consumer misunderstanding, leading to a loss of trust in insurance offerings [14]. - Experts suggest that merely removing the problematic activity is insufficient; a formal apology and compliance adjustments are necessary to regain consumer confidence [14].

Core Viewpoint - Morgan Stanley has downgraded the EBITDA forecast for China Civil Aviation Information Network (00696) for the years 2023 to 2027 by 6% to 7% due to slower-than-expected revenue recognition in the SI business, lower processing volumes from foreign airlines, and reduced depreciation and amortization expenses [1] Summary by Category Financial Performance - The net profit forecast for the company for this year remains largely unchanged, supported by a significant credit impairment reversal and lower depreciation and amortization [1] - The net profit forecasts for the next two years have been reduced by 1% and 2% respectively [1] Target Price and Ratings - The target price for China Civil Aviation Information Network has been raised from HKD 9.9 to HKD 10.2, with the assumption for the RMB exchange rate adjusted from considering RMB appreciation to a 1.5% appreciation against the HKD [1] - The stock continues to be rated as "Underweight" by Morgan Stanley [1]