中国民航信息网络（696） 更新报告 买入 2024年4月3日 基本面企稳向好，有望继续 受益于民航业复苏 罗凡环  公司业绩符合预期，派息分红有待提高：23 年公司收入 69.8 亿元人民币 852-25321962 （YoY+34%）,归属于母公司股东净利润 13.99 亿元（YoY+123%）,符合公司 之前的盈利预告（预计 23 年录得净利润约为 12.5-14.5 亿元）。公司每股 Simon.luo@firstshanghai.com.hk 盈利为人民币 0.48 元，董事会建议派发 23 年年度以现金支付的末期股息 李京霖 0.16元，全年派息比率33%，去年同期为25%，23年来自经营活动现金流入 净额为1.37亿元，公司的现金及现金等价物为72.8亿元，财务状况健康， 852-25321957 公司也通过提升派息比率回馈股东。 Jinglin.li@firstshanghai.com.hk  公司 23 年基础业务显著恢复，系统集成业务有所拖累：随着疫情放开， 中国民航业呈现有序恢复的局面。2023 年公司航空信息服务技术收入达 主要数据 38.5 亿元（YoY+149%）,全年系统处理 ...

Financial Performance - Total revenue for the fiscal year ended December 31, 2023, was approximately RMB 6,983.8 million, an increase of about 34.0% compared to the previous year[5] - Net profit attributable to shareholders of the parent company was approximately RMB 1,399.0 million, representing an increase of about 123.1% year-over-year[5] - Earnings per share for the fiscal year was RMB 0.48, up from RMB 0.21 in the previous year[10] - The company reported a total profit of RMB 1,612.1 million, compared to RMB 735.1 million in the previous year[8] - The company achieved a significant increase in investment income, reporting RMB 81.6 million compared to RMB 30.6 million in the previous year[6] - The revenue from aviation information technology services accounted for 55.1% of total revenue in 2023, up from 29.7% in 2022, with a significant increase of 149.0% to RMB 3,850.8 million[80] - The revenue from settlement and clearing services increased by 52.1% to RMB 447.3 million in 2023, accounting for 6.4% of total revenue[83] Dividends and Shareholder Returns - The board proposed a final cash dividend of RMB 0.16 per share for the fiscal year 2023[5] - The company declared a cash dividend of RMB 0.053 per share for the 2022 final dividend, totaling RMB 155,089 thousand, and proposed a cash dividend of RMB 0.16 per share for the 2023 final dividend, totaling RMB 468,194 thousand, pending shareholder approval[47] - As of December 31, 2023, the reserves available for distribution to shareholders amounted to RMB 8,200.3 million, up from RMB 7,419.5 million as of December 31, 2022[94] Operating Costs and Expenses - Total operating costs for the year were RMB 5,300.8 million, compared to RMB 4,729.5 million in the previous year[6] - The company’s operating costs for the current period were RMB 3,316,519 thousand, compared to RMB 3,089,871 thousand in the previous period, representing an increase of approximately 7.3%[42] - Total operating costs for 2023 were RMB 5,300.8 million, an increase of RMB 571.3 million or 12.1% from RMB 4,729.5 million in 2022[82] - The company achieved a 14.4% increase in labor costs due to higher employee compensation and social insurance expenses[82] - The company experienced a 212.6% increase in commission and promotion expenses, primarily due to a significant year-on-year increase in passenger volume[86] Assets and Liabilities - The total assets as of December 31, 2023, amounted to RMB 27,500.1 million, up from RMB 25,237.6 million in the previous year[14] - Total liabilities increased to RMB 6,481,535,000 from RMB 5,495,393,000, representing a growth of 18% year-over-year[16] - Current liabilities rose to RMB 6,193,494,000, up from RMB 5,142,697,000, marking an increase of 20%[16] - Non-current liabilities decreased to RMB 288,042,000 from RMB 352,696,000, a decline of 18%[16] - Total equity increased to RMB 21,018,594,000 from RMB 19,742,230,000, reflecting an increase of 6.5%[17] - The asset-liability ratio as of December 31, 2023, is 23.6%, up from 21.8% on December 31, 2022[112] Research and Development - Research and development expenses increased to RMB 863.0 million from RMB 701.7 million, reflecting a focus on innovation[6] - The company was recognized as a national-level enterprise technology center and established a national-level postdoctoral research workstation, enhancing its innovation capabilities[75] Operational Highlights - The company processed approximately 620.1 million passenger transactions through its electronic travel distribution (ETD) system, a growth of about 148.7% compared to the previous year[57] - In 2023, the company processed approximately 1,017.7 million transactions in its settlement and clearing system, representing a year-on-year growth of 78.1%[61] - The company signed contracts with 19 airlines for its digital retail platform solution, supporting a customer-centric business model[58] - The company established connections with 142 foreign and regional commercial airlines, expanding its distribution network to over 400 cities and reaching 33 countries and regions[63] Future Outlook - The outlook for 2024 indicates a focus on high-quality development in the civil aviation industry, driven by increased domestic demand and structural reforms[126] - The company plans to enhance safety levels, improve operational quality, accelerate strategic industry layout, and increase technological innovation efforts in 2024[128] - The company aims to deepen reforms, enhance talent incentive mechanisms, and optimize business structures to promote high-quality development[128] Governance and Compliance - The board of directors includes executive, non-executive, and independent non-executive members, ensuring a diverse governance structure[130] - The Audit and Risk Management Committee has reviewed the accounting policies and practices adopted by the group, discussing matters related to audit, risk management, and internal controls[122] - The company appointed Lixin Certified Public Accountants as the auditor for the fiscal year 2023, with a recommendation to reappoint them for 2024[123]

Financial Performance - In the first half of 2023, the total profit of the group was RMB 1,346.9 million, an increase of approximately 191.1% compared to RMB 462.7 million in the same period of 2022[24]. - The net profit attributable to the parent company's shareholders was RMB 1,200.4 million, up approximately 171.0% from RMB 443.0 million in the first half of 2022[24]. - Total revenue for the first half of 2023 was RMB 3,307.6 million, representing an increase of RMB 1,035.6 million or 45.6% from RMB 2,272.0 million in the same period of 2022[25]. - Operating profit for the first half of 2023 was RMB 1,338,680,209.07, compared to RMB 418,235,787.17 in the previous year, indicating a substantial increase of about 219.5%[87]. - Net profit for the first half of 2023 amounted to RMB 1,207,653,920.80, up from RMB 455,820,238.46 in the prior year, reflecting an increase of approximately 164.5%[87]. Revenue Breakdown - Revenue from agency settlement for passenger, cargo, and postal transport, as well as miscellaneous fees and international and domestic clearing fees exceeded $2.57 billion, reflecting a year-on-year increase of 100.8%[18]. - Revenue from aviation information technology services accounted for 57.1% of total revenue in the first half of 2023, up from 35.3% in the same period of 2022, with an increase from RMB 801.9 million to RMB 1,890.1 million, a growth of 135.7%[25]. - Settlement and clearing revenue increased by 31.4% to RMB 185.4 million in the first half of 2023, compared to RMB 141.1 million in the same period of 2022[27]. Cost and Expenses - Total operating costs for the first half of 2023 were RMB 2,178.2 million, an increase of RMB 354.8 million or 19.5% from RMB 1,823.4 million in the same period of 2022[30]. - Labor costs increased by 13.1% due to higher employee compensation and social insurance expenses[30]. - Research and development expenses for the first half of 2023 were RMB 275,217,130.34, up from RMB 216,765,622.61 in the same period last year, indicating an increase of about 27%[86]. Cash Flow and Liquidity - The net cash inflow from operating activities for the first half of 2023 was RMB 1,011.2 million[35]. - Cash and cash equivalents amounted to RMB 4,933,610,343.78, an increase from RMB 4,646,870,810.21, showing a rise of about 6.2%[83]. - The cash flow from operating activities for the first half of 2023 was RMB 1,011,222,951.49, compared to RMB 496,670,492.62 in the previous year, marking an increase of about 103%[94]. Assets and Liabilities - As of June 30, 2023, the total assets of the company amounted to RMB 28,181,129,502.66, an increase from RMB 25,262,644,119.55 at the end of the previous year, representing a growth of approximately 7.6%[80]. - Total liabilities increased to RMB 7,377,501,262.35, up from RMB 5,520,413,793.01 year-over-year, representing a growth of approximately 33.6%[81]. - The asset-liability ratio as of June 30, 2023, was 26.2%, compared to 21.9% as of December 31, 2022[47]. Share Capital and Equity - The issued share capital as of June 30, 2023, was 2,926,209,589 shares, with domestic shares accounting for 68.13% and H shares for 31.87%[59]. - The total equity attributable to the parent company increased to RMB 20,283,507,913.86 from RMB 19,229,378,570.23, showing a growth of approximately 5.5%[82]. - The company reported a profit distribution of RMB 155,089,108.22 to shareholders during the period, which reflects a decrease in retained earnings[101]. Corporate Governance and Compliance - The company has made amendments to its articles of association to enhance corporate governance and comply with regulatory requirements[58]. - The company confirmed that all directors complied with the standard code regarding securities trading during the six months ending June 30, 2023[74]. - The company is committed to maintaining high levels of corporate governance and transparency to all market participants and regulatory bodies[72]. Technological Developments - The group has established a third-generation passenger revenue management platform in line with new distribution capabilities (NDC) and One Order trends[18]. - The group has deployed facial recognition boarding at 54 major airports and has promoted the One ID passenger service platform to over 20 domestic airports[19]. - The group launched the first airport digital RMB solution at Changsha Huanghua International Airport, becoming a pioneer in the civil aviation industry[20]. Market and Business Strategy - The company plans to focus on enhancing core system autonomy and promoting "dual carbon" technology innovation in the second half of 2023[54]. - The company aims to maximize fund returns by selecting principal-protected financial products with higher interest rates than bank deposits[38]. - The company plans to focus on market expansion and new product development in the upcoming quarters[100].

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份 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） （股份編號：00696） 截至二零二三年六月三十日止期間之業績公佈 中國民航信息網絡股份有限公司（「本公司」）董事會（「董事會」）謹此公佈本公司及其附 屬公司（「本集團」）截至二零二三年六月三十日止六個月期間的按照中國企業會計準則 （「中國企業會計準則」）編製的未經審計之中期業績公告。 合併利潤表 截至二零二三年六月三十日止六個月（除特別註明外，金額單位均為人民幣千元） 項目 附註 本期金額 上期金額 一、營業總收入 3,307,556 2,271,991 其中：營業收入 5.f) 3,307,556 2,271,991 二、營業總成本 2,178,181 1,823,422 其中：營業成本 5.f) 1,438,785 1,265,393 稅金及附加 36,221 35,089 銷售費用 55,082 38,293 管理費用 444,719 349,548 ...

Business Overview - TravelSky's core business includes aviation IT services, distribution IT services, and aviation settlement and clearing services, catering to various industry participants [2]. - The group has over 20 subsidiaries in China and wholly-owned subsidiaries in regions such as Hong Kong, Singapore, and Ireland [3]. - The company is a leading supplier of information technology solutions for the aviation tourism industry in China, focusing on aviation IT services, distribution IT services, and settlement services [134]. Shareholder Information - As of December 31, 2022, the largest shareholder is China Civil Aviation Information Group, holding approximately 29.29% of the shares [3]. - As of December 31, 2022, the company's issued share capital was 2,926,209,589 shares, with domestic shares accounting for 68.13% and H shares for 31.87% [136]. - The percentage of shares held by major shareholders is calculated based on the total number of shares issued as of December 31, 2022 [142]. Financial Performance - Operating revenue for 2022 was RMB 5,210,106 thousand, a decrease of 4.9% compared to RMB 5,476,177 thousand in 2021 [41]. - Total profit for 2022 reached RMB 735,139 thousand, reflecting an increase of 10.8% from RMB 663,883 thousand in 2021 [41]. - Net profit attributable to shareholders for 2022 was RMB 626,499 thousand, up 13.6% from RMB 551,301 thousand in 2021 [41]. - Basic and diluted earnings per share for 2022 were RMB 0.21, compared to RMB 0.19 in 2021, representing a growth of 10.5% [41]. - Total assets as of December 31, 2022, amounted to RMB 25,236,452 thousand, an increase of 4.7% from RMB 24,111,139 thousand in 2021 [42]. - Total liabilities for 2022 were RMB 5,495,296 thousand, up 12.6% from RMB 4,881,056 thousand in 2021 [42]. Operational Highlights - The ETD system processing volume has ranked first globally for six consecutive years, with a processing volume of nearly 700 million passengers in 2021 [28]. - In 2022, the group processed approximately 249.3 million passenger trips through its electronic travel distribution (ETD) system, a decrease of about 42.4% compared to 2021 [50]. - The processing volume for domestic commercial airlines decreased by approximately 42.9%, while the processing volume for foreign and regional commercial airlines increased by approximately 81.5% [50]. - The group’s CRS system is directly connected to 154 foreign and regional commercial airlines, with a direct sales ratio of approximately 99.9% [50]. Technological Advancements - The "Aggregation" platform based on New Distribution Capability (NDC) received the highest NDC Level 4 certification from the International Air Transport Association [28]. - The company was recognized as a high-tech enterprise for 22 consecutive years and received multiple awards for technological advancements in 2022 [43]. - The company completed significant tasks related to passenger information systems during major events such as the Beijing Winter Olympics and the 20th National Congress of the Communist Party [26]. Employee and Corporate Governance - As of December 31, 2022, the group employed 6,570 staff members [3]. - The board of directors consists of nine members, with external directors accounting for more than half, including at least three independent non-executive directors [94]. - The company has established a transparent complaint and reporting management process to prevent bribery and corruption [93]. Risk Management and Compliance - The company has established a comprehensive risk management and internal control system to ensure the effectiveness of its strategic goals [116]. - The board believes that the internal control system is effective and sufficient, with no significant deficiencies identified during the evaluation period [117]. - The company conducts at least one internal control effectiveness check and risk assessment annually, addressing any identified deficiencies and significant risks [120]. Market and Future Outlook - The international passenger market is recovering rapidly, with the adjustment of pandemic control policies leading to an increase in international flights [48]. - Future outlook includes potential market expansion and new product development initiatives to drive growth in the upcoming fiscal periods [200]. Dividend and Shareholder Returns - The proposed final cash dividend for the year 2022 is RMB 155.1 million, which equates to RMB 0.053 per share, based on a total of 2,926,209,589 shares issued [74]. - The company has a consistent dividend policy, proposing a final cash dividend of RMB 0.053 per share for the year 2022, which represents approximately 30-40% of the company's after-tax profit [156]. Supplier and Customer Relations - The largest supplier for the company in 2022 was China Civil Aviation Information Group, accounting for 1.5% of the total operating costs (excluding depreciation and amortization) for the year [164]. - The largest customer, China Southern Airlines, contributed 8.4% to the company's revenue from goods sold or services provided in 2022 [165].

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，並明確表示概不就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） （股份編號：00696） 截至二零二二年十二月三十一日止 財政年度全年業績公佈 業績摘要： • 總收入約為人民幣5,210.1百萬元，較二零二一年度減少了約4.9%。 • 本集團歸屬於母公司股東淨利潤約為人民幣626.5百萬元，較二零二一年度增 加了約13.6%。 • 每股盈利為人民幣0.21元。 • 董事會建議派發二零二二年度以現金支付的末期股息每股人民幣0.053元。 茲提述中國民航信息網絡股份有限公司（「本公司」）所發佈的日期為二零二三年三月二 十三日之二零二二年度業績公告（「原業績公告」）和日期為二零二三年四月十日之有關 二零二二年度業績公告之澄清公告（「澄清公告」）。 ...

Financial Performance - The net profit for the year ended December 31, 2022, is clarified to be 679,277, not 679,227 as previously reported[1] - The board confirms that the clarification does not affect any other information in the annual performance announcement[1] - The announcement maintains all other data unchanged in both English and Chinese versions[1] - The document serves as a clarification rather than a new announcement, emphasizing accuracy in financial reporting[1] Governance and Leadership - The board of directors includes both executive and non-executive members, ensuring diverse oversight[1] - The board includes independent non-executive directors, enhancing governance and accountability[1] - The chairman of the board is Huang Rongshun, indicating leadership continuity[1] Company Information - The company is registered in the People's Republic of China, indicating its operational jurisdiction[1] - The company operates under stock code 00696, relevant for investors tracking its performance[1] Communication - The announcement was made on April 10, 2023, reflecting timely communication with stakeholders[1]

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，並明確表示概不就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） （股份編號：00696） 截至二零二二年十二月三十一日止 財政年度全年業績公佈 業績摘要： • 總收入約為人民幣5,210.1百萬元，較二零二一年度減少了約4.9%。 • 本集團歸屬於母公司股東淨利潤約為人民幣626.5百萬元，較二零二一年度增 加了約13.6%。 • 每股盈利為人民幣0.21元。 • 董事會建議派發二零二二年度以現金支付的末期股息每股人民幣0.053元。 中國民航信息網絡股份有限公司（「本公司」）董事會（「董事會」）謹此公佈本公司及其附屬 公司（「本集團」）截至二零二二年十二月三十一日止年度（「二零二二年度」）的按照中國企 業會計準則（「中國企業會計準則」）編製的經審計的綜合業績。 ...

Financial Performance - For the first half of 2022, the total revenue of TravelSky Technology Limited was RMB 2,272.0 million, a decrease of RMB 566.3 million or 20.0% compared to RMB 2,838.3 million in the same period of 2021[21]. - The pre-tax profit for the first half of 2022 was RMB 462.7 million, an increase of approximately 41.2% from RMB 327.6 million in the first half of 2021[20]. - The net profit attributable to shareholders for the first half of 2022 was RMB 443.0 million, up approximately 61.0% from RMB 275.2 million in the same period of 2021[20]. - Total operating revenue for the six months ended June 30, 2022, was RMB 2,271,990,839.04, a decrease of 20% from RMB 2,838,332,752.63 in the same period last year[77]. - Net profit for the period was RMB 455,820,238.46, representing an increase of 54.5% compared to RMB 294,904,534.90 in the previous year[78]. - Basic and diluted earnings per share were both RMB 0.15, up from RMB 0.09 in the same period last year, indicating a growth of 66.7%[79]. - The total comprehensive income for the period was RMB 457,921,316.41, an increase of 57.3% from RMB 291,167,477.35 in the same period last year[79]. Revenue Breakdown - The revenue from aviation information technology services accounted for 35.3% of total revenue, decreasing from 52.0% in the first half of 2021, with a drop from RMB 1,476.5 million to RMB 801.9 million, a decrease of 45.7%[21]. - The revenue from system integration services increased by 26.3% to RMB 600.3 million, up from RMB 475.2 million in the first half of 2021, accounting for 26.4% of total revenue[21]. - Data network revenue rose by 15.9% to RMB 232.3 million, compared to RMB 200.4 million in the first half of 2021, representing 10.2% of total revenue[21]. - Other income accounted for 21.9% of total revenue in the first half of 2022, down from 18.4% in the same period of 2021, with a decrease of 4.9% from RMB 522.0 million to RMB 496.4 million[22]. Operating Costs and Expenses - Total operating costs in the first half of 2022 were RMB 1,823.4 million, a decrease of RMB 337.5 million or 15.6% compared to RMB 2,160.9 million in the first half of 2021[24]. - Research and development expenses decreased to RMB 216,765,622.61 from RMB 293,664,655.80, a reduction of approximately 26.2%[77]. - The total operating costs, including taxes and additional expenses, were RMB 1,016,840,005.69, down from RMB 1,095,444,756.81, a decrease of about 7.2%[81]. - The company experienced a significant reduction in sales expenses, which fell to RMB 6,574,055.39 from RMB 10,393,367.81, a decrease of approximately 36.0%[81]. Cash Flow and Liquidity - Cash and cash equivalents as of June 30, 2022, amounted to RMB 5,555.9 million, with 94.6% in RMB, 4.5% in USD, and 0.4% in TWD[25]. - Operating cash inflow from operating activities was RMB 496.7 million in the first half of 2022[25]. - Cash flow from operating activities generated a net amount of RMB 496,670,492.62, down from RMB 998,910,751.45, reflecting a decline of approximately 50.3%[84]. - The total cash and cash equivalents at the end of the period were 5,555,889,791.20 RMB, compared to 4,426,355,098.00 RMB in the previous period, showing an increase in liquidity[85]. - The net increase in cash and cash equivalents was -783,712,750.32 RMB, contrasting with an increase of 61,419,616.31 RMB in the previous period, highlighting a challenging cash flow environment[85]. Investments and Assets - The fair value of the investment in China Merchants Renhe Life Insurance was approximately RMB 850.6 million as of June 30, 2022, accounting for 3.4% of the group's total assets[33]. - The investment in China Merchants Renhe Life Insurance reported a loss of RMB 247.5 million in the first half of 2022 due to initial investments in branch establishment and channel expansion[34]. - The company's total assets amounted to RMB 24,904,255,877.79, an increase from RMB 24,111,138,979.19 at the end of the previous year, representing a growth of approximately 3.29%[67]. - The company's current assets totaled RMB 16,551,289,296.26, up from RMB 15,638,632,722.94, indicating an increase of about 5.83% year-over-year[66]. - The total liabilities increased to RMB 5,378,032,427.21 from RMB 4,881,056,042.58, which is an increase of approximately 10.18%[69]. Shareholder Information - China Eastern Airlines Group holds approximately 9.17% of the company's total shares, equating to 182,743,500 domestic shares[46]. - Citigroup Inc. controls 58,284,676 H shares, representing 6.24% of the H share class and 1.99% of the total share capital[48]. - JPMorgan Chase & Co. holds 56,064,901 H shares, accounting for 6.01% of the H share class and 1.91% of the total share capital[49]. - BlackRock, Inc. possesses 47,536,609 H shares, which is 5.10% of the H share class and 1.62% of the total share capital[51]. - The total issued shares of the company as of June 30, 2022, are 2,926,209,589[52]. Corporate Governance - The company has adopted the Corporate Governance Code and has complied with all provisions except for a temporary deviation regarding the roles of Chairman and CEO[58]. - The board diversity policy has been revised to ensure gender diversity and limit nominations for individuals aged 70 and above[60]. - Liu Jianping was appointed as an executive director, and several new independent non-executive directors were appointed as of September 1, 2022[61]. - The company has maintained high levels of corporate governance and transparency in its operations[58]. Future Plans and Strategies - The company plans to invest a total of RMB 1 billion in the China Mobile Equity Fund, focusing on 5G applications and the information communication industry[37]. - The company aims to enhance its technological innovation capabilities and accelerate the construction of a dual-carbon work system[41]. - The company is focusing on safety and innovation to drive high-quality development amid a complex economic environment[41]. Accounting Policies - The financial statements are prepared in accordance with the accounting standards issued by the Ministry of Finance, reflecting the company's financial position as of June 30, 2022[100]. - The company recognizes revenue when the company fulfills its performance obligations, which occurs when the customer gains control of the related goods[198]. - Financial assets are classified into whole transfers and partial transfers, with gains or losses recognized based on the difference between the carrying amount and the consideration received[131].

Company Performance - The company reported a significant increase in system processing volume, ranking among the top globally for five consecutive years[3]. - Total revenue for the year ended December 31, 2021, was RMB 5,476,177,000, a slight decrease from RMB 5,485,577,000 in 2020[43]. - Total profit for the year ended December 31, 2021, was RMB 663,883,000, compared to RMB 314,161,000 in 2020, indicating a significant increase[43]. - Net profit attributable to shareholders for the year ended December 31, 2021, was RMB 551,301,000, up from RMB 362,800,000 in 2020[43]. - Basic and diluted earnings per share for the year ended December 31, 2021, were RMB 0.19, compared to RMB 0.12 in 2020[43]. - The company achieved a market capitalization exceeding HKD 50 billion as of February 7, 2021, marking its 20th anniversary of listing[40]. - The company reported a pre-tax profit of approximately RMB 663.9 million in 2021, an increase of about 111.3% compared to 2020[66]. - The net profit attributable to shareholders was approximately RMB 551.3 million, representing a year-on-year increase of about 52.0%[66]. Operational Growth - As of December 31, 2021, the company had 6,608 employees, reflecting its growth and operational scale[3]. - The company has established over 20 subsidiaries in China, including the China Aviation Settlement Co., Ltd.[3]. - The company successfully completed the acquisition of the entire registered capital and properties of the settlement company[34]. - The electronic ticketing system achieved 100% electronicization, earning the company the IATA Global Outstanding Contribution Award[34]. - The company has developed advanced products and services to meet the electronic transaction needs of all industry participants[3]. - The company is committed to expanding its market presence and enhancing its technological capabilities[3]. - The company established a new data center in Beijing Shunyi, further improving its operational capabilities[40]. Financial Overview - Total assets as of December 31, 2021, reached RMB 24,111,139 thousand, an increase from RMB 22,769,276 thousand in 2020, representing a growth of approximately 5.9%[46]. - Total liabilities as of December 31, 2021, were RMB 4,881,056 thousand, an increase from RMB 4,001,118 thousand in 2020, which is an increase of about 22%[46]. - The asset-liability ratio as of December 31, 2021, was 20.2%, up from 17.6% in 2020[88]. - The total capital expenditure for the year 2021 was RMB 867.7 million, down from RMB 941.8 million in 2020[89]. - The net cash flow from operating activities for the year ended December 31, 2021, was RMB 2,942.8 million, a significant increase from RMB 164.2 million in 2020[76]. Market Position and Recognition - The company has been recognized as a high-tech enterprise for 21 consecutive years, reflecting its commitment to innovation[40]. - The company has been included in major indices such as MSCI Emerging Markets Index and Hang Seng Composite Index, enhancing its market visibility[40]. - The company achieved a direct connection with 152 foreign airlines, covering over 400 cities domestically and internationally, and reached 33 countries and regions[54]. - The company received significant awards, including the 22nd China Patent Award for Excellence and the First Prize for Technological Progress in Civil Aviation[47]. Corporate Governance - The board of directors consists of nine members, with more than half being external directors, including three independent non-executive directors[94]. - The company fully complied with the corporate governance code during the fiscal year 2021[92]. - The company has established four specialized committees to oversee strategic investment, nominations, remuneration, and financial reporting, among other areas[104]. - The company’s independent non-executive directors confirmed their independence in accordance with listing rules during the reporting period[99]. Risk Management and Compliance - The company established a comprehensive risk management and internal control system to ensure the effectiveness of its operations[122]. - The company identified and assessed risks across strategic, market, operational, and financial domains, leading to a decrease in the likelihood and impact of significant risks[124]. - The audit report emphasizes the importance of internal controls to prevent material misstatements due to fraud or error[192]. - The company has maintained its accounting policies and practices without changes in auditors from 2018 to 2021[181]. Shareholder Information - The company maintains a stable dividend policy, proposing a final cash dividend of RMB 0.055 per share for the fiscal year 2021, representing approximately 30-40% of the net profit[145]. - The company’s largest shareholder, China Civil Aviation Information Group, holds approximately 29.29% of the shares[3]. - The company did not repurchase, sell, or redeem any of its listed securities during the year ended December 31, 2021[131]. Technological Advancements - The company is focusing on digital transformation and the construction of smart airports, driven by high-tech innovations such as cloud computing and artificial intelligence[48]. - The company developed a self-service check-in system (CUSS) compliant with IATA standards, which is used in 194 major airports, and online check-in services were applied in 246 airports, processing approximately 258 million departing passengers[51]. - The company launched a smart travel service platform, which won a first-class award for technological progress from the China Transportation Association[52]. Customer and Supplier Relations - The company aims to continuously improve customer satisfaction and loyalty through a customer demand-oriented service approach[151]. - The largest customer, China Southern Airlines, represented 8.9% of the company's revenue from goods sold or services provided in 2021[151]. - The company has established a supplier management mechanism to enhance supplier relationships and ensure compliance with relevant laws and regulations[150].