Financial Performance - Operating revenue for Q3 2024 reached CNY 48,629,587, an increase of 6.03% year-on-year[2] - Net profit attributable to shareholders was CNY 4,144,237, a decrease of 2.31% compared to the same period last year[2] - Net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 3,872,907, down 4.73% year-on-year[2] - Basic earnings per share for Q3 2024 was CNY 0.26, a decrease of 7.14% compared to the previous year[2] - Total operating revenue for the first three quarters of 2024 reached CNY 128,149,919 thousand, compared to CNY 105,476,845 thousand in the same period of 2023, reflecting a year-on-year increase of 21.5%[14] - Net profit for the first three quarters of 2024 was CNY 769,271 thousand, a decrease from CNY 1,186,837 thousand in the same period of 2023[15] - The company reported a comprehensive income total of CNY 889,405 thousand for Q3 2024, down from CNY 1,095,486 thousand in the same quarter of 2023[16] - The total comprehensive income for the first three quarters of 2024 was RMB 477,272 thousand, a recovery from a total comprehensive loss of RMB 1,844,579 thousand in the same period of 2023[24] Assets and Liabilities - Total assets at the end of Q3 2024 amounted to CNY 344,550,972, reflecting a 2.76% increase from the end of the previous year[3] - The total liabilities as of September 30, 2024, were RMB 40,348,110, compared to RMB 32,334,721 at the end of 2023, reflecting an increase of approximately 24.8%[11] - The total liabilities as of the end of Q3 2024 amounted to CNY 306,569,088 thousand, compared to CNY 300,014,685 thousand at the end of Q3 2023[12] - The total liabilities decreased to RMB 182,014,141 thousand in Q3 2024 from RMB 188,766,159 thousand in Q3 2023, indicating improved financial stability[22] Shareholder Equity - Shareholders' equity attributable to shareholders reached CNY 40,543,145, an increase of 8.90% year-on-year[3] - The total equity attributable to shareholders of the parent company increased to CNY 40,543,145 thousand from CNY 37,229,962 thousand year-on-year[12] Cash Flow - The cash flow from operating activities for the first three quarters of 2024 showed significant improvement, although specific figures were not disclosed in the provided content[15] - In the first three quarters of 2024, cash inflow from operating activities reached RMB 143,775,914 thousand, an increase from RMB 123,104,998 thousand in the same period of 2023, representing a growth of approximately 16.8%[17] - The net cash flow from operating activities for the first three quarters of 2024 was RMB 30,741,937 thousand, compared to RMB 33,075,596 thousand in 2023, indicating a decrease of about 10.0%[18] - The cash flow from operating activities generated a net amount of RMB 19,770,703 thousand, compared to RMB 21,719,076 thousand in the same period of 2023[25] Investments and Financing - The company issued bonds worth RMB 7,000,000 thousand in 2024, contributing to its financing activities[25] - The company reported a significant increase in cash received from other operating activities, which rose to RMB 6,013,482 thousand in 2024 from RMB 3,970,888 thousand in 2023, marking an increase of about 51.4%[17] - The total cash inflow from investment activities in the first three quarters of 2024 was RMB 2,470,695 thousand, down from RMB 7,527,523 thousand in 2023, reflecting a decline of approximately 67.2%[18] - The net cash flow from financing activities for the first three quarters of 2024 was RMB -15,283,175 thousand, slightly improved from RMB -15,909,432 thousand in 2023[19] Operational Metrics - The company plans to introduce 100 C919 aircraft, which was approved in the second extraordinary general meeting on August 9, 2024[9] - The company plans to continue expanding its market presence and investing in new technologies to enhance operational efficiency and customer experience[15] - The company reported a significant increase in sales expenses, which rose to RMB 3,118,048 thousand from RMB 2,332,122 thousand year-over-year, reflecting increased marketing efforts[23] - The financial expenses decreased to RMB 2,815,913 thousand in 2024 from RMB 4,001,530 thousand in 2023, indicating better cost management[23]

2024年，公司坚持稳中求进工作总基调，完整、准确、 全面贯彻新发展理念，服务加快构建新发展格局，统筹高质 量发展和高水平安全，增强核心功能、提高核心竞争力。着 力提升核心资源使用效率，加大投入规模。坚持边际贡献总 量最大化原则，持续扩大有效投入规模，统筹飞机、机组、 航权、时刻等关键资源和保障能力，提升资源利用效率。动 态把控运力投向和结构，及时优化机型与市场匹配，优化飞 机衔接，提升运行保障效率和运行品质。提升精细化管理水 平，积极创收增利。增强市场信心，把控好主基地、主市场、 主干线价格水平，合理调控量价关系，保持收益品质行业领 先水平。丰富国际营销产品，以品牌运价、入境自由行产品 等为抓手，深入挖掘市场增量，促进"向上销售"。深化协 同配合，强化集团"一盘棋"。坚持战略管控、市场布局、 核心资源和关键规则"四个统一"，进一步发挥"国航系" 协同效应，带动营收持续增长。强化客运协同，统筹时刻资 源使用，完善各子企业的基地布局和发展方向，统一收益管 理，统筹市场把控策略。严格管控成本，着力防范风险。持 续深化全链条、全业务降本节支，严控人工、保障等固定成 本和"两金"增幅。持续深化"四位一体"法治中航建设 ...

日常关联交易公告 证券代码：601111 股票简称：中国国航 公告编号：2024-046 中国国际航空股份有限公司 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述 或者重大遗漏，并对其内容的真实性、准确性和完整性承担法律责任。 重要内容提示： 一、日常关联交易基本情况 本次关联交易须提交公司股东大会审议； 本次关联交易不会影响公司的独立性，不会对公司的经营产生重大影响。 签署了有关持续性关联交易的《框架协议》，协议有效期至 2024 年 12 月 31 日。 详情请见本公司 2022 年 9 月 21 日在上海证券交易所网站（www.sse.com.cn）及 《中国证券报》《上海证券报》《证券日报》上披露的相关公告。 鉴于前述日常关联交易协议将于 2024 年 12 月 31 日届满，为保持相关业务 的连续性，经本公司第六届董事会第三十三次会议批准，本公司于 2024 年 10 月 30 日与中航集团公司等相关关联方就如下日常关联交易事项达成协议：（1）与 中航集团公司续展《政府包机服务持续性关联（连）交易框架协议》并续签《房 地产租赁持续性关联（连）交易框架协议》及《相互提供服务持续性关 ...

本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述 或者重大遗漏，并对其内容的真实性、准确性和完整性承担法律责任。 重要内容提示： 会议召开时间：2024 年 10 月 31 日（星期四）下午 15:00-16:00 会 议 召 开 地 点 ： 上海证券 交 易 所 上 证 路 演 中 心 （ 网址： https://roadshow.sseinfo.com/） 会议召开方式：上证路演中心网络互动 投资者可于 2024 年 10 月 24 日（星期四） 至 10 月 30 日（星期三）16:00 前登录上证路演中心网站首页点击"提问预征集"栏目或通过公司邮箱 ir@airchina.com 进行提问。公司将在说明会上对投资者普遍关注的问题进行回 答。 中国国际航空股份有限公司（以下简称公司）将于 2024 年 10 月 31 日披露 公司 2024 年第三季度报告，为便于广大投资者更全面深入地了解公司 2024 年第 三季度经营成果、财务状况，公司计划于 2024 年 10 月 31 日下午 15:00-16:00 举 行 2024 年第三季度业绩说明会，就投资者关心的问题进行交流。 证券代码 ...

中国国际航空股份有限公司（以下简称"公司"）于近日收到上海证券交易 所上市审核中心向公司出具的《关于中国国际航空股份有限公司向特定对象发行 股票审核意见的通知》，认为公司向特定对象发行股票申请符合发行条件、上市 条件和信息披露要求。 公司本次向特定对象发行 A 股股票事项尚需经中国证券监督管理委员会作 出同意注册决定后方可实施，最终能否获得中国证券监督管理委员会同意注册的 决定及其时间尚存在不确定性。公司将根据进展情况，严格按照上市公司向特定 对象发行股票相关法律法规的规定和要求及时履行信息披露义务，敬请投资者注 意投资风险。 证券代码：601111 股票简称：中国国航 公告编号：2024-042 中国国际航空股份有限公司 关于向特定对象发行 A 股股票申请获得 上海证券交易所审核通过的公告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈 述或者重大遗漏，并对其内容的真实性、准确性和完整性承担法律责任。 中国北京，二〇二四年十月二十一日 特此公告。 中国国际航空股份有限公司董事会 ...

证券代码：601111 股票简称：中国国航 公告编号：2024-041 中国国际航空股份有限公司 2024年9月主要运营数据公告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述 或者重大遗漏，并对其内容的真实性、准确性和完整性承担法律责任。 2024 年 9 月，中国国际航空股份有限公司（以下简称"本公司"）及所属 子公司（以下简称"本集团"）合并旅客周转量（按收入客公里计）同比上升。 客运运力投入（按可用座位公里计）同比上升 11.8%，旅客周转量同比上升 20.0%。 其中，国内客运运力投入同比下降 0.1%，旅客周转量同比上升 8.5%；国际客运 运力投入同比上升 55.4%，旅客周转量同比上升 65.4%；地区客运运力投入同比 上升 24.8%，旅客周转量同比上升 28.3%。平均客座率 79.7%，同比上升 5.5 个 百分点。其中，国内航线同比上升 6.5 个百分点，国际航线同比上升 4.5 个百分 点，地区航线同比上升 1.9 个百分点。 货运方面，货运运力投入（按可用货运吨公里计）同比上升 15.8%，货邮周 转量（按收入货运吨公里计）同比上升 27.6%，货运载运率为 3 ...

FF301 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2024年9月30日 狀態: 新提交 呈交日期: 2024年10月8日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 H | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 00753 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 4,955,610,672 | RMB | | 1 RMB | | 4,955,610,672 | | 增加 / 減少 (-) | | | 0 | | | RMB | | 0 | | 本月底結存 | | | 4,955,610,672 | RMB | | 1 RMB | | 4,955,610,672 | | 2. 股份分類 | 普通股 | 股份類別 | A | | 於香港聯交所上市 (註1) | | 否 ...

Investment Rating - The report maintains an "Accumulate" rating for China National Aviation (China National Airlines) [2][7]. Core Views - The aviation demand shows resilience, and supply-demand dynamics are expected to continue recovering. The company is projected to see a significant increase in profitability as supply-demand conditions improve [6][7]. - The report anticipates a net profit of -2.8 billion RMB for the first half of 2024, indicating a continued reduction in losses compared to the previous year [7]. - The company is adjusting its net profit forecasts for 2024 and 2025 to 0.8 billion and 6.1 billion RMB respectively, while introducing a new forecast of 15 billion RMB for 2026 [7]. Financial Summary - Revenue is expected to rise from 52.9 billion RMB in 2022 to 141.1 billion RMB in 2023, reflecting a 167% increase. Projections for 2024, 2025, and 2026 are 169.9 billion, 182.5 billion, and 199.1 billion RMB respectively, with growth rates of 20%, 7%, and 9% [5]. - Gross profit is forecasted to improve from a loss of 29.9 billion RMB in 2022 to a profit of 7.1 billion RMB in 2023, with further increases to 10.8 billion, 19.8 billion, and 31.8 billion RMB in the following years [5]. - Net profit is projected to shift from a loss of 38.6 billion RMB in 2022 to a loss of 1.0 billion RMB in 2023, followed by profits of 0.8 billion, 6.1 billion, and 14.9 billion RMB in 2024, 2025, and 2026 respectively [5]. Market Position and Strategy - The company is focusing on optimizing its high-quality flight network, which is expected to enhance long-term value despite short-term pressures [7]. - The report highlights that the company’s fleet size has increased by 14% compared to 2019, with a 5% increase in available seat kilometers (ASK), although recovery in wide-body aircraft operations remains slow [7]. - The strategic acquisition of Shandong Airlines is expected to bolster the company’s market position, enhancing its operational capabilities and profitability potential [7].

Investment Rating - The report maintains a "Buy" rating for China National Aviation (601111) [4] Core Views - The aviation demand shows resilience, and supply-demand recovery is expected to continue. The company is projected to reduce losses year-on-year in the first half of 2024, with a high-quality flight network anticipated to demonstrate an upward shift in profit center once supply-demand recovers [2][3]. Summary by Sections Investment Highlights - The report emphasizes the optimization of the high-quality flight network of China National Aviation, indicating that short-term pressures do not diminish its long-term value. The profit center is expected to exceed expectations once supply-demand recovers. The net profit forecasts for 2024 and 2025 have been adjusted down to 8 billion and 61 billion respectively, with a new forecast for 2026 set at 150 billion. The target price has been revised down to 13.52 yuan from 14.53 yuan, based on a 15x PE ratio for 2026 [3][4]. Financial Performance - In the first half of 2024, the company reported a net profit attributable to shareholders of -28 billion yuan, continuing to reduce losses year-on-year. The recovery in profitability is slower than the recovery in turnover due to factors such as pressure from wide-body aircraft and seasonal supply-demand challenges. The company is committed to a stable pricing strategy, although domestic passenger revenue remains nearly 6% lower than in 2019 due to business travel cost controls [3][10]. Market Outlook - The report suggests that the aviation sector has a long-term growth logic, as the Chinese aviation market is still in its early stages of development. The low frequency and low penetration characteristics indicate significant long-term potential. Additionally, international flight increases are expected to help absorb excess capacity, further driving supply-demand recovery [3][10]. Strategic Positioning - Under the "Super Carrier" strategy, the optimization of the flight network is expected to enhance long-term value. The company has acquired high-quality flight slots in key markets, which will support ongoing optimization of passenger sources. Future international flight increases and demand growth are anticipated to further drive supply-demand recovery and cost reductions [3][10].

[Company Information](index=4&type=section&id=%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99) Air China is China's exclusive flag carrier, listed in Hong Kong, London, and Shanghai, headquartered in Beijing - Air China is China's sole flag carrier, listed in Hong Kong and London in 2004, and Shanghai in 2006, with its headquarters in Beijing[2](index=2&type=chunk) [Financial Data Summary](index=5&type=section&id=%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99%E6%91%98%E8%A6%81) The company reported increased operating revenue and a narrowed loss attributable to shareholders in the first half of 2024 2024 H1 Income Statement Summary | Metric (RMB thousands) | 2024 H1 | 2023 H1 | | :--- | :--- | :--- | | **Operating Revenue** | 79,520,332 | 59,613,193 | | **Operating Loss** | (1,081,972) | (898,200) | | **Loss Attributable to Equity Holders of the Company** | (2,778,953) | (3,446,814) | | **Loss Per Share Attributable to Equity Holders of the Company (RMB)** | (0.1767) | (0.2239) | 2024 H1 Balance Sheet Summary | Metric (RMB thousands) | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total Assets** | 345,400,348 | 335,278,694 | | **Total Liabilities** | 311,551,672 | 300,014,685 | | **Equity Attributable to Equity Holders of the Company** | 36,587,810 | 37,205,975 | - In the first half of 2024, the company's operating revenue increased year-on-year, and the loss attributable to shareholders narrowed from **RMB 3.447 billion** in the prior period to **RMB 2.779 billion**[7](index=7&type=chunk) [Business Operations Data Summary](index=6&type=section&id=%E6%A5%AD%E5%8B%99%E9%81%8B%E7%87%9F%E6%95%B8%E6%93%9A%E6%91%98%E8%A6%81) The company experienced significant growth in capacity and passenger traffic, leading to improved load factors, despite a decline in unit passenger yield - In the first half of 2024, the company's overall capacity (Available Seat Kilometers) increased by **33.38%** year-on-year, with international route capacity surging by **210.41%**; passenger traffic (Revenue Passenger Kilometers) grew by **49.96%**, and the overall passenger load factor improved by **8.77 percentage points** to **79.29%**[10](index=10&type=chunk) 2024 H1 Key Operating Data | Metric | 2024 H1 | 2023 H1 | Y-o-Y Change | | :--- | :--- | :--- | :--- | | **Available Seat Kilometers (Millions)** | 171,790.89 | 128,799.56 | 33.38% | | **Revenue Passenger Kilometers (Millions)** | 136,213.57 | 90,835.35 | 49.96% | | **Passenger Load Factor** | 79.29% | 70.52% | +8.77 percentage points | | **Number of Passengers (Thousands)** | 74,959.47 | 55,544.89 | 34.95% | | **Cargo and Mail (Tons)** | 701,598.29 | 429,444.60 | 63.37% | | **Overall Load Factor** | 65.86% | 58.15% | +7.70 percentage points | - Despite improvements in passenger and overall load factors, unit yield declined, with revenue per Revenue Passenger Kilometer decreasing by **12.08%** year-on-year, and international routes experiencing the largest drop at **36.61%**, while revenue per Revenue Freight Ton Kilometer increased by **14.91%**[11](index=11&type=chunk) [Fleet Development](index=8&type=section&id=%E6%A9%9F%E9%9A%8A%E7%99%BC%E5%B1%95) The group's fleet expanded to 915 aircraft with an average age of 9.64 years, with plans for significant future additions and retirements - As of June 30, 2024, the group's fleet comprised **915 aircraft** with an average age of **9.64 years**, following the introduction of 16 new aircraft and the retirement of 6[12](index=12&type=chunk) Fleet Composition (As of June 30, 2024) | Aircraft Series | Quantity | Average Age (Years) | | :--- | :--- | :--- | | Airbus Series | 437 | 9.29 | | Boeing Series | 447 | 10.46 | | COMAC Series | 27 | 1.66 | | Business Jets | 4 | 10.78 | | **Total** | **915** | **9.64** | - The group plans to introduce **164 aircraft** from Airbus, Boeing, and COMAC series between 2024 and 2026, while also planning to retire **32 aircraft**[14](index=14&type=chunk) [Business Overview](index=9&type=section&id=%E6%A5%AD%E5%8B%99%E6%A6%82%E8%A7%88) The company focused on enhancing safety, operational efficiency, service quality, brand value, and synergistic development across its subsidiaries [Safety Operations](index=9&type=section&id=%E5%AE%89%E5%85%A8%E9%81%8B%E8%A1%8C) During the reporting period, the group prioritized safety, achieving 1.438 million safe flight hours and successfully completing key transportation support missions - The group achieved **1.438 million safe flight hours** in the first half of the year, successfully completing critical transportation support tasks for events like the Spring Festival travel rush and the "Two Sessions," ensuring absolute safety[16](index=16&type=chunk) [Efficiency Enhancement](index=9&type=section&id=%E6%95%88%E7%9B%8A%E6%94%BB%E5%A0%85) The group implemented various strategies to improve operational efficiency, including increasing domestic capacity, restoring international routes, refining marketing, and strengthening cost control - The company significantly increased capacity in the domestic market to develop express routes while steadily resuming and launching new international routes to expand operational scale[17](index=17&type=chunk) - Revenue quality was enhanced through scientific pricing of connecting products, adjusting premium cabin price gradients, optimizing frequent flyer policies, and strengthening passenger-cargo synergy[17](index=17&type=chunk) [Service Improvement](index=10&type=section&id=%E6%9C%8D%E5%8B%99%E6%8F%90%E5%8D%87) The company continuously enhanced service quality and passenger experience by optimizing special passenger services, launching cultural events, introducing new express products, and advancing digital service transformation - Focusing on passenger concerns, the company optimized services for special passengers, irregular flights, and ticketing, while launching brand activities such as the "Phoenix Pavilion" cultural exhibition[18](index=18&type=chunk) - Accelerated digital service transformation, promoted a global ground flight support platform, and advanced the development of a full-process service information notification system and in-flight meal pre-order management system[18](index=18&type=chunk) [Brand Value](index=10&type=section&id=%E5%93%81%E7%89%8C%E5%83%B9%E5%80%BC) The company actively promoted brand leadership, enhancing its influence through participation in major exhibitions and strengthening international cooperation, maintaining a leading position in China's aviation service industry - According to the World Brand Lab's ranking, Air China was listed 25th in the 2024 China's 500 Most Valuable Brands, with a brand value of **RMB 259.695 billion**, a year-on-year increase of **RMB 24.533 billion**[19](index=19&type=chunk) [Synergistic Development](index=10&type=section&id=%E5%8D%94%E5%90%8C%E7%99%BC%E5%B1%95) The company adopted a centralized and synergistic development model, enhancing efficiency and competitive strength through integrated network planning, intermodal transport, and mobile ticketing across its subsidiaries - In the first half of the year, intermodal segments within the Air China Group increased by **216%** year-on-year, with gradual implementation of mobile inter-group flight sales and one-stop ticket changes/refunds[20](index=20&type=chunk) [Operating Performance of Major Subsidiaries and Associates](index=11&type=section&id=%E4%B8%BB%E8%A6%81%E9%99%84%E5%B1%AC%E5%85%AC%E5%8F%B8%E5%92%8C%E5%8F%83%E8%82%A1%E5%85%AC%E5%8F%B8%E7%9A%84%E7%B6%93%E7%87%9F%E6%83%85%E6%B3%81%E5%8F%8A%E6%A5%AD%E7%B8%BE) Major subsidiaries like Shenzhen Airlines and Shandong Airlines Group reported revenue growth, with Shandong Airlines Group turning profitable, while associate Cathay Pacific achieved a significant profit attributable to equity holders Performance Summary of Major Subsidiaries and Associates (RMB billions) | Company Name | Company's Shareholding Percentage | Operating Revenue | Profit/(Loss) Attributable to Equity Holders | Prior Period Profit/(Loss) Attributable to Equity Holders | | :--- | :--- | :--- | :--- | :--- | | Shenzhen Airlines | 51% | 16.018 | (1.374) | (1.420) | | Shandong Airlines Group | 66% | 9.781 | 0.026 | 0.357 | | Air Macau | 66.92% | 1.473 | (0.378) | (0.173) | | Ameco | 75% | 5.718 | 0.266 | 0.134 | | Cathay Pacific | 29.99% | 45.112 | 3.067 | 3.593 | [Employee Information](index=13&type=section&id=%E5%93%A1%E5%B7%A5%E6%83%85%E6%B3%81) As of the reporting period, the company and its subsidiaries employed 103,159 staff, with a compensation philosophy focused on job value, individual capability, and performance outcomes - As of the reporting period, the company had **46,656 employees** and its subsidiaries had **56,503 employees**[25](index=25&type=chunk) [Management Discussion and Analysis](index=14&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90) This section provides an in-depth analysis of the company's financial performance, operational results, and key risk factors during the reporting period [Operating Revenue](index=14&type=section&id=%E7%87%9F%E6%A5%AD%E6%94%B6%E5%85%A5) The group's operating revenue increased by 33.39% to RMB 79.52 billion, driven by a significant 34.43% growth in air transportation revenue, particularly from international routes Operating Revenue Composition (RMB billions) | Item | 2024 H1 | 2023 H1 | Y-o-Y Growth | | :--- | :--- | :--- | :--- | | **Total Operating Revenue** | **79.520** | **59.613** | **33.39%** | | Air Transportation Revenue | 76.466 | 56.880 | 34.43% | | Other Operating Revenue | 3.054 | 2.733 | 11.74% | [Passenger Revenue](index=14&type=section&id=%E5%AE%A2%E9%81%8B%E6%94%B6%E5%85%A5) Passenger revenue grew by 31.85% to RMB 73.137 billion, primarily due to increased capacity and load factor, though partially offset by a decline in unit yield, with international passenger revenue showing the strongest growth - Passenger revenue growth was primarily driven by increased capacity and passenger load factor, but revenue per Revenue Passenger Kilometer decreased by **12.08%** year-on-year, negatively impacting revenue growth[29](index=29&type=chunk)[30](index=30&type=chunk) [Cargo and Mail Transportation Revenue](index=15&type=section&id=%E8%B2%A8%E9%83%B5%E9%81%8B%E8%BC%B8%E6%94%B6%E5%85%A5) Cargo and mail transportation revenue surged by 136.08% to RMB 3.328 billion, driven by increases in capacity, load factor, and unit yield, with international cargo revenue being the primary growth driver - Cargo and mail transportation showed strong performance, with capacity (Available Freight Ton Kilometers) increasing by **49.66%**, load factor improving by **9.92 percentage points**, and unit yield growing by **14.91%**, collectively driving significant revenue growth[32](index=32&type=chunk)[33](index=33&type=chunk) [Operating Expenses](index=16&type=section&id=%E7%B6%93%E7%87%9F%E8%B2%BB%E7%94%A8) The group's operating expenses increased by 29.84% to RMB 83.853 billion, primarily due to higher aviation fuel costs, landing and parking fees, aircraft maintenance, and staff costs, correlating with increased business volume Major Operating Expense Items (RMB billions) | Expense Item | 2024 H1 | 2023 H1 | Y-o-Y Growth | | :--- | :--- | :--- | :--- | | **Total Operating Expenses** | **83.853** | **64.581** | **29.84%** | | Aviation Fuel Costs | 27.132 | 19.347 | 40.24% | | Staff Costs | 16.954 | 13.595 | 24.71% | | Depreciation and Amortization | 14.025 | 12.705 | 10.39% | | Landing and Parking Fees | 9.963 | 6.636 | 50.15% | - Aviation fuel costs increased by **RMB 7.785 billion** year-on-year, mainly due to higher fuel consumption and rising jet fuel prices, while landing and parking fees increased by **RMB 3.328 billion** due to more take-offs and landings[36](index=36&type=chunk) [Financial Position and Performance](index=17&type=section&id=%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%88%87%E6%A5%AD%E7%B8%BE) The group significantly narrowed its net exchange loss to RMB 360 million, reduced interest expenses, and recognized RMB 1.085 billion in profit from associates, primarily from Cathay Pacific, though this contribution decreased year-on-year - Net exchange loss was **RMB 360 million**, a year-on-year reduction of **RMB 1.205 billion**[37](index=37&type=chunk) - Profit from associates was **RMB 1.085 billion**, with Cathay Pacific contributing **RMB 1.067 billion** in investment income, though this contribution decreased by **RMB 212 million** year-on-year[38](index=38&type=chunk) [Asset and Liability Structure Analysis](index=18&type=section&id=%E8%B3%87%E7%94%A2%E8%B2%A0%E5%82%B5%E7%B5%90%E6%A7%8B%E5%88%86%E6%9E%90) As of the reporting period, the group's total assets reached RMB 345.40 billion, with total liabilities at RMB 311.552 billion, resulting in a 90.20% debt-to-asset ratio, and interest-bearing debt totaling RMB 237.735 billion - Total assets increased by **3.02%** from the end of 2023 to **RMB 345.40 billion**, with cash and cash equivalents increasing by **32.94%** to **RMB 19.964 billion**[39](index=39&type=chunk) - Total liabilities increased by **3.85%** from the end of 2023 to **RMB 311.552 billion**, with the debt-to-asset ratio rising by **0.72 percentage points** to **90.20%** from the beginning of the year[43](index=43&type=chunk)[46](index=46&type=chunk) - Capital expenditures totaled **RMB 5.921 billion** during the reporting period, primarily for aircraft, engines, and related investments[41](index=41&type=chunk) [Liquidity and Funding Sources](index=19&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E8%88%87%E8%B3%87%E9%87%91%E4%BE%86%E6%BA%90) The group primarily met its funding needs through operating activities and external financing, with net cash inflow from operating activities at RMB 14.253 billion and substantial unused bank credit lines available Cash Flow Summary (RMB billions) | Cash Flow Item | 2024 H1 | 2023 H1 | | :--- | :--- | :--- | | **Net Cash Inflow from Operating Activities** | 14.253 | 16.142 | | **Net Cash Outflow from Investing Activities** | 8.177 | 2.032 | | **Net Cash (Outflow)/Inflow from Financing Activities** | (1.154) | 1.046 | - As of the reporting period, the company had total bank credit facilities of **RMB 230.587 billion**, with approximately **RMB 137.665 billion** unused, sufficient to meet liquidity and capital expenditure needs[47](index=47&type=chunk) [Potential Risks](index=20&type=section&id=%E5%8F%AF%E8%83%BD%E9%9D%A2%E5%B0%8D%E7%9A%84%E9%A2%A8%E9%9A%AA) The group faces significant external environment risks, including market volatility, oil price fluctuations, and exchange rate changes, alongside competitive pressures from industry peers and high-speed rail [External Environment Risks](index=20&type=section&id=%E5%A4%96%E9%83%A8%E7%92%B0%E5%A2%83%E9%A2%A8%E9%9A%AA) External risks include market, oil price, and exchange rate fluctuations, with uneven international market recovery, particularly slow recovery in North American routes, and significant impacts of oil price and exchange rate changes on costs and profits - If the average jet fuel price increases or decreases by **5%**, the group's aviation fuel costs would change by approximately **RMB 1.357 billion**[48](index=48&type=chunk) - A **1%** appreciation or depreciation of the RMB against the USD would result in a change of approximately **RMB 227 million** in the group's net profit and shareholders' equity[48](index=48&type=chunk) [Competition Risks](index=21&type=section&id=%E7%AB%B6%E7%88%AD%E9%A2%A8%E9%9A%AA) The company faces intense peer competition due to wide-body aircraft redeployment to domestic routes amid incomplete international market recovery, and ongoing passenger diversion risks from high-speed rail development - The strategy to address this is to adhere to the hub network strategy, building world-class hubs in Beijing and Chengdu, achieving differentiated development, and consolidating core markets with high-quality products[49](index=49&type=chunk) [Corporate Governance and Other Information](index=22&type=section&id=%E5%85%AC%E5%8F%B8%E6%B2%BB%E7%90%86%E5%8F%8A%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) This section details changes in the company's board and management, shareholder structure, significant corporate actions, and dividend policy [Changes in Directors, Supervisors, and Senior Management Information](index=22&type=section&id=%E5%85%AC%E5%8F%B8%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%A3%E4%BA%8B%E8%88%87%E9%AB%98%E7%B4%9A%E7%AE%A1%E7%90%86%E4%BA%BA%E5%93%A1%E4%BF%A1%E6%81%AF%E8%AE%8A%E6%9B%B4%E6%83%85%E6%B3%81) During and after the reporting period, the company's board and senior management underwent several changes, including new appointments and departures due to retirement or age - During the reporting period, Mr. Yan Fei was appointed Vice President, and Mr. Xiao Feng was appointed Board Secretary and Joint Company Secretary, while Mr. Chen Zhiyong and Mr. Huang Bin retired from their respective positions[52](index=52&type=chunk) [Shareholding Structure](index=23&type=section&id=%E8%82%A1%E6%9D%B1%E6%8C%81%E8%82%A1%E6%83%85%E6%B3%81) As of the reporting period, controlling shareholder CNAC Group held a combined 51.32% stake, with Cathay Pacific as the second-largest shareholder at 15.87% - Controlling shareholder CNAC Group, through direct and indirect holdings via its wholly-owned subsidiary CNAC Limited, collectively controls **51.32%** of the company's shares[56](index=56&type=chunk)[59](index=59&type=chunk) - Cathay Pacific Airways Limited holds **2,633,725,455 H shares**, representing **15.87%** of the total share capital, making it a major shareholder of the company[56](index=56&type=chunk) [Other Significant Matters](index=27&type=section&id=%E5%85%B6%E4%BB%96%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A0%85) The company completed a private placement of H-shares raising approximately HKD 2 billion and signed an agreement to purchase 100 C919 aircraft for about USD 10.8 billion, approved by shareholders - In February 2024, the company completed a private placement of **392,927,308 H shares** to CNAC Limited, raising net proceeds of approximately **HKD 1.999 billion** for working capital replenishment[63](index=63&type=chunk)[64](index=64&type=chunk) - In April 2024, the company signed an agreement with COMAC to purchase **100 C919 aircraft** for a total basic price of approximately **USD 10.8 billion**, with the transaction approved by shareholders in August[63](index=63&type=chunk) [Interim Dividend](index=29&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The company's board of directors decided not to declare an interim dividend for the six months ended June 30, 2024 - The company will not distribute an interim dividend for 2024[70](index=70&type=chunk) [Review Report on Condensed Consolidated Financial Statements](index=31&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E7%9A%84%E5%AF%A9%E9%96%B1%E5%A0%B1%E5%91%8A) Deloitte Touche Tohmatsu, the international auditor, reviewed the interim condensed consolidated financial statements and found no material non-compliance with IAS 34 - International auditor Deloitte Touche Tohmatsu reviewed the interim condensed consolidated financial statements in accordance with Hong Kong Standards on Review Engagements, noting no matters that would lead them to believe the financial statements were not prepared in all material respects in accordance with International Accounting Standard 34[75](index=75&type=chunk)[76](index=76&type=chunk) [Condensed Consolidated Financial Statements](index=32&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) This section presents the company's core financial statements, including income, comprehensive income, balance sheet, equity changes, and cash flow statements, along with detailed explanatory notes [Condensed Consolidated Income Statement](index=32&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E8%A1%A8) This statement details the company's revenues, various costs and expenses, pre-tax loss, and final net loss for the reporting period [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=33&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E7%B6%9C%E5%90%88%E6%94%B6%E7%9B%8A%E8%A1%A8) This statement extends the net loss by incorporating other comprehensive income or expenses, such as fair value changes of financial instruments and foreign currency translation differences, to arrive at the total comprehensive expense for the period [Condensed Consolidated Statement of Financial Position](index=34&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) This statement presents the detailed composition of the company's assets, liabilities, and shareholders' equity at the end of the reporting period, reflecting its financial condition [Condensed Consolidated Statement of Changes in Equity](index=36&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8) This statement details the changes in various components of shareholders' equity, including share capital, capital reserves, and retained earnings, influenced by factors such as net loss and new share issuance during the reporting period [Condensed Consolidated Cash Flow Statement](index=37&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E7%8F%BE%E9%87%91%E6%B5%81%E8%A1%A8) This statement clearly presents the company's cash flows categorized into operating, investing, and financing activities, showing cash inflows and outflows during the reporting period [Notes to the Condensed Consolidated Financial Statements](index=38&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) This section provides detailed explanations and supplementary information for key items in the financial statements, including accounting policies, segment information, revenue breakdown, related party transactions, and commitments, essential for understanding the financial reports [Glossary of Technical Terms](index=66&type=section&id=%E6%8A%80%E8%A1%93%E8%A9%9E%E5%BD%99%E8%A1%A8) This section defines specialized aviation industry terms used in the report, such as 'Available Ton Kilometers,' 'Revenue Passenger Kilometers,' and 'Passenger Load Factor,' to aid reader comprehension - This section explains specialized aviation industry terms used in the report, such as 'Available Ton Kilometers,' 'Revenue Passenger Kilometers,' and 'Passenger Load Factor,' to help readers understand the meaning of operational data[155](index=155&type=chunk)[156](index=156&type=chunk)[157](index=157&type=chunk) [Definitions](index=67&type=section&id=%E9%87%8B%E7%BE%A9) This section provides clear definitions for specific terms and abbreviations used throughout the report, such as 'Ameco,' 'CNAC Group,' and 'Shandong Airlines Group' - This section provides clear definitions for specific terms and abbreviations used in the report, such as 'Ameco,' 'CNAC Group,' and 'Shandong Airlines Group'[160](index=160&type=chunk)[161](index=161&type=chunk)