Fleet and Operations - China Southern Airlines operates a fleet of 908 aircraft, including Boeing 787, 777, 737 series, and Airbus A350, 330, 320 series[6]. - The company has 20 subsidiaries and 7 holding airline subsidiaries, with 52 overseas offices globally[6]. - The fleet size reached 908 aircraft, with 37 new deliveries and 23 retirements during the reporting period[17]. - The average age of the fleet is 9.2 years, with an overall load factor of 66.4%[69]. - The company achieved a total flight time of 2.842 million hours and transported 142 million passengers in 2023, marking a significant operational recovery[26]. Financial Performance - The company's operating revenue for 2023 reached RMB 159,929 million, an increase of 83.70% compared to RMB 87,059 million in 2022[10]. - The net loss attributable to equity holders of the company was RMB (4,140) million, a significant improvement of 87.34% from RMB (32,699) million in the previous year[10]. - Operating expenses rose by 37.99% to RMB 159,052 million in 2023, compared to RMB 115,262 million in 2022[46]. - The company achieved operating profit of RMB 5,557 million in 2023, a turnaround from an operating loss of RMB 22,542 million in 2022[46]. - Passenger revenue reached RMB 136,170 million in 2023, a 126.89% increase from RMB 60,017 million in 2022[47]. Market Presence and Strategy - The company aims to enhance its strategic market presence and develop a hub-centric network structure[6]. - In 2023, the company focused on deepening its presence in the Guangdong-Hong Kong-Macao Greater Bay Area and optimizing its Beijing hub operations[6]. - The company plans to continue expanding its market presence and enhancing its operational efficiency through new strategies and technologies[12]. - The company plans to expand its international route network, having launched a new direct flight from Beijing Daxing to Istanbul[19]. - The company aims to enhance its brand service with the launch of the upgraded "Southern Airlines Express" service[20]. Safety and Awards - The company received the highest safety award in civil aviation in China, the "Diamond Three-Star Award for Flight Safety," in January 2024[6]. - The group achieved a total of 2.842 million safe flight hours during the reporting period, maintaining a leading safety level in the industry[27]. - The group has maintained a stable quality of operations and improved brand image, winning the "Best Airline Award" for six consecutive years[114]. Customer and Passenger Metrics - The number of passengers carried increased to 142,201.09 thousand, representing a growth of 127.02% from 62,637.12 thousand in 2022[13]. - The average passenger load factor improved to 78.09%, up by 11.74 percentage points from 66.35% in 2022[14]. - Passenger traffic during the summer season exceeded 26 million, surpassing pre-pandemic levels from 2019[19]. - Customer and frequent flyer numbers reached 29,000 and 99.06 million respectively, with cargo and mail transport volume increasing by 19.47% year-on-year[28]. Cargo and Mail Operations - The cargo volume transported increased by 19.47% to 1,584.92 thousand tons compared to 1,326.66 thousand tons in 2022[13]. - Cargo and mail revenue decreased by 26.86% to RMB 15,275 million in 2023, down from RMB 20,884 million in 2022[47]. - The average revenue per available ton kilometer decreased by 33.57% to RMB 1.88, indicating challenges in the cargo segment[15]. Digital Transformation and Innovation - The group is advancing digital transformation with a new IT architecture, promoting automated flight scheduling[30]. - The company has established a digital operation and management model focusing on five key business areas, enhancing operational efficiency and service quality[44]. - The group added 115 new national authorized patents during the reporting period, enhancing its technological innovation capabilities[31]. Future Outlook and Plans - The company aims to establish a world-class airline by 2025, focusing on core air transport operations and collaborative development with pillar industries[42]. - The company plans to deliver a total of 82 aircraft in 2024, with a projected fleet size of 948 by year-end[94]. - The company plans to enhance market competitiveness by improving customer engagement and expanding product offerings, while also transitioning to a full-value chain logistics service provider[90]. - The company anticipates global economic growth of 3.1% in 2024, with a resilient and vibrant Chinese economy supporting its strategic objectives[88]. Share Issuance and Capital Structure - The company plans to issue up to 5,436,269,319 new A-shares, raising a total of up to RMB 17,500 million for purchasing new aircraft and supplementing working capital[153]. - The company will also issue up to 855,028,969 new H-shares, raising up to HKD 2,900 million for general operating funds[153]. - The total number of shares as of December 31, 2023, is 18,120,906,806, with 803,571,428 shares subject to limited sale conditions, representing 4.43% of total shares[163]. - The company has received necessary approvals for the issuance of A-shares and H-shares from relevant authorities[157]. Employee Metrics - As of December 31, 2023, the total number of employees in the group is 99,468, an increase of 1,569 from 97,899 on December 31, 2022, representing a growth of approximately 1.6%[198]. - The breakdown of employees by category includes 11,590 pilots, 40,314 service staff, 6,809 management, 1,414 operations, 12,080 technical staff, 1,640 information technology, 4,620 marketing, 14,853 comprehensive roles, and 6,148 functional roles, totaling 99,468 employees[200].

Financial Performance - Total operating revenue for 2023 reached RMB 159,929 million, a significant increase from RMB 87,059 million in 2022, representing an increase of 83.3%[2] - Operating expenses totaled RMB 159,052 million in 2023, up from RMB 115,262 million in 2022, reflecting a rise of 38.0%[3] - The company reported an operating profit of RMB 5,557 million for 2023, a turnaround from an operating loss of RMB 22,542 million in 2022[3] - Net loss for the year was RMB 2,957 million, a substantial improvement compared to a net loss of RMB 33,716 million in the previous year[4] - Basic and diluted loss per share improved to RMB (0.23) in 2023 from RMB (1.90) in 2022[3] - The total comprehensive income for the year was a net loss of (32,699) million, compared to (33,608) million in the previous year, indicating a slight improvement[11] - The company reported a decrease in total comprehensive income, with a loss of (36,900) million as of December 31, 2023, compared to (32,760) million in the previous year[11] - The net loss attributable to shareholders for 2023 was RMB 4,209 million, compared to a net loss of RMB 32,682 million in 2022, showing significant improvement[65] Assets and Liabilities - Non-current assets as of December 31, 2023, amounted to RMB 281,657 million, slightly up from RMB 278,792 million in 2022[6] - Current assets decreased to RMB 27,939 million in 2023 from RMB 33,454 million in 2022, indicating a decline of 16.5%[6] - Total liabilities decreased to RMB 129,436 million in 2023 from RMB 141,458 million in 2022, a reduction of 8.5%[8] - The company’s total equity as of December 31, 2023, was RMB 52,367 million, down from RMB 55,359 million in 2022[8] - As of December 31, 2023, the total assets amounted to RMB 96,976 million, an increase from RMB 86,514 million on December 31, 2022, reflecting a growth of approximately 12.5%[43] - The total amount of borrowings as of December 31, 2023, is RMB 116,216 million, down from RMB 119,780 million in 2022, indicating a reduction of about 3.1%[53] - The total liabilities as of December 31, 2023, were RMB 257,229 million, consistent with the total liabilities reported for December 31, 2022[32] Revenue Breakdown - Passenger revenue for 2023 was RMB 136,170 million, significantly up from RMB 60,017 million in 2022, marking a growth of 127.3%[22] - The total revenue from domestic operations in 2023 was RMB 122,933 million, significantly up from RMB 57,256 million in 2022, indicating a growth of approximately 114%[30] - Passenger load factor rose by 11.74 percentage points to 78.09% in 2023, compared to 66.35% in 2022[82] - Revenue per available seat kilometer (RPK) decreased by 6.78% to RMB 0.55 in 2023 from RMB 0.59 in 2022[82] - Revenue per ton kilometer (RTK) increased by 2.83% to RMB 5.08 in 2023, up from RMB 4.94 in 2022[82] Operational Efficiency - The company plans to focus on expanding its market presence and enhancing operational efficiency in the upcoming year[1] - The company continues to focus on its core aviation business, including passenger and cargo transport services[12] - The group achieved a flight safety record of 2.842 million hours, maintaining a leading safety level in the industry[67] - The company aims to enhance safety management through digital transformation and strict management of safety personnel, maintaining a stable safety status in 2024[108] - The company plans to improve market competitiveness by enhancing core network connectivity and developing a comprehensive customer management system[109] Taxation and Financial Management - The income tax expense for 2023 was RMB 1,436 million, a decrease of 33.7% from RMB 2,166 million in 2022[37] - The effective income tax rate for the company and its subsidiaries in China remained between 15% to 25% for both 2023 and 2022[37] - The company recognized deferred tax assets from unused tax losses and deductible temporary differences amounting to RMB 1,345 million in 2023, down from RMB 6,956 million in 2022[38] - The company reported a decrease in tax expenses due to non-deductible expenses of RMB 109 million in 2023, compared to RMB 90 million in 2022[38] Future Outlook and Strategic Initiatives - The company plans to continue expanding its market presence and investing in new technologies to enhance operational efficiency and asset utilization[44] - Strategic initiatives include high-quality development goals and expanding into emerging industries, particularly enhancing capabilities at Beijing hub and Daxing Airport[111] - The International Monetary Fund forecasts a global economic growth of 3.1% for 2024, with challenges from tightening monetary policies and geopolitical conflicts[107] Shareholder Information - The company did not recommend any dividends for the years ended December 31, 2023, and 2022[41] - The total number of shares as of December 31, 2023, was 18,120,892,710, with no repurchase or redemption of shares during the year[103] - The company confirmed compliance with the Hong Kong Stock Exchange's Listing Rules throughout the year ended December 31, 2023[105]

Financial Performance - Operating revenue for Q3 2023 reached RMB 47,661 million, an increase of 62.42% compared to the same period last year[4] - Net profit attributable to shareholders for Q3 2023 was RMB 4,195 million, with a significant recovery in passenger revenue contributing to this result[4] - Net profit attributable to shareholders after deducting non-recurring gains and losses for the year-to-date period was RMB -151 million, reflecting a 99.18% decrease compared to the same period last year[4] - Basic earnings per share for Q3 2023 was RMB 0.23, reflecting improved profitability[4] - Weighted average return on equity for Q3 2023 increased by 22.41 percentage points to 10.43% due to enhanced operational performance[4] - Total operating revenue for the first three quarters of 2023 reached RMB 119,491 million, a significant increase from RMB 70,161 million in the same period of 2022, representing a growth of 70.3%[18] - The net profit for the first three quarters of 2023 was RMB 2,770 million, a turnaround from a net loss of RMB 18,135 million in the same period of 2022[19] - Total comprehensive income for the first three quarters of 2023 reached RMB 2,688 million, a significant improvement from a loss of RMB 18,132 million in the same period of 2022[21] - Basic earnings per share for the first three quarters of 2023 was RMB 0.07, a recovery from a loss of RMB 1.03 per share in the same period of 2022[21] Cash Flow and Liquidity - Cash flow from operating activities for the year-to-date period increased by 406.56% to RMB 36,979 million, indicating a strong recovery in operations[7] - The net cash flow generated from operating activities was RMB 36,979 million, compared to RMB 7,300 million in the first three quarters of 2022, indicating a strong operational performance[23] - The total net cash inflow from operating activities was RMB 138,845 million, compared to RMB 83,901 million in the same period last year, showing a robust increase in cash generation[23] - The net cash flow from investing activities was negative at RMB 6,633 million, worsening from a negative RMB 2,671 million in the previous year, indicating increased investment outflows[24] - The net cash inflow from financing activities was negative at RMB 36,069 million, compared to a negative RMB 11,279 million in the same period of 2022, reflecting higher debt repayments[24] - As of September 30, 2023, the company's cash and cash equivalents amount to RMB 14,435 million, a decrease from RMB 20,240 million as of December 31, 2022[13] - Cash and cash equivalents at the end of the period stood at RMB 14,191 million, down from RMB 14,886 million at the end of the same period last year[24] Assets and Liabilities - Total assets at the end of the reporting period were RMB 306,201 million, a decrease of 1.86% from the previous year-end[4] - The total assets as of September 30, 2023, were RMB 306,201 million, a decrease from RMB 312,001 million at the end of 2022[17] - Total liabilities decreased to RMB 248,339 million as of September 30, 2023, down from RMB 256,887 million at the end of 2022[17] - Long-term borrowings increased to RMB 22,465 million in 2023 from RMB 15,316 million in 2022, reflecting a growth of 47.0%[16] Shareholder Information - The total number of common shareholders at the end of the reporting period is 162,987, with the largest shareholder, China Southern Airlines Group Co., Ltd., holding 9,404,468,936 shares, representing 51.90% of the total[8] - The top ten shareholders collectively hold a significant portion of the company's shares, with the top three alone accounting for over 75% of the total shares[9] - The company has a total of 803,571,428 preferred shares with restored voting rights, indicating a potential for increased shareholder engagement[8] - The largest foreign shareholder is American Airlines, holding 270,606,272 shares, which represents 1.49% of the total shares[8] - The company has a diversified shareholder base, including both state-owned and foreign entities, which may enhance its market stability[9] - The company has not reported any pledges, markings, or frozen shares among the top shareholders, suggesting a stable ownership structure[9] Revenue and Expenses - Revenue from sales of goods and services amounted to RMB 136,323 million, up from RMB 75,035 million year-on-year, reflecting a growth of approximately 81.8%[22] - Total operating costs for the first three quarters of 2023 were RMB 119,954 million, compared to RMB 94,601 million in 2022, reflecting an increase of 26.9%[18] - The company reported a significant increase in sales expenses, which rose to RMB 4,791 million in 2023 from RMB 2,996 million in 2022, marking a 60.0% increase[18] - Research and development expenses increased to RMB 377 million in 2023, up from RMB 268 million in 2022, indicating a growth of 40.7%[18] - The company reported an increase in investment income to RMB 463 million in 2023, compared to RMB 479 million in 2022, showing a slight decrease of 3.3%[19] Market Outlook - The company experienced a significant increase in passenger revenue, which was a key driver for the overall revenue growth[6] - The company is focused on continuing its market recovery and expansion strategies in the upcoming quarters[6]

Fleet and Operations - China Southern Airlines operates a fleet of 897 aircraft, including Boeing 787, 777, 737 series, and Airbus 350, 330, 320 models[1]. - The company has the largest passenger volume in China, with a comprehensive network covering domestic and international routes[1]. - The company has 20 subsidiaries and 7 holding airline subsidiaries, with a total of 52 overseas offices globally[1]. - The airline's operational performance is supported by a strong financial structure, with major banks including China Development Bank and Industrial and Commercial Bank of China as key partners[9]. - The company aims to expand its market presence and enhance its service offerings through strategic initiatives and technological advancements[5]. - The company aims to transform its operational model towards high-quality development, focusing on safety, innovation, and collaboration[20]. - The company has implemented a digital transformation strategy, enhancing its IT architecture and data management[25]. - The company is committed to improving operational control costs and enhancing service levels in response to complex domestic and international environments[64]. - The company aims to enhance operational efficiency and aircraft utilization rates, focusing on maximizing marginal contributions and improving performance in key markets[66]. Financial Performance - Operating revenue for the first half of 2023 reached RMB 71,830 million, a 75.98% increase compared to RMB 40,817 million in the same period of 2022[10]. - Net loss attributable to equity holders of the company improved to RMB (2,877) million, a 74.96% reduction from RMB (11,490) million year-on-year[10]. - Net cash inflow from operating activities surged to RMB 16,831 million, up 917.59% from RMB 1,654 million in the first half of 2022[10]. - Basic and diluted loss per share decreased to RMB (0.16), a 76.47% improvement from RMB (0.68) in the same period last year[11]. - Total operating income for the first half of 2023 was RMB 71,830 million, reflecting a 75.98% increase from RMB 40,817 million in the same period of 2022[34]. - Total operating expenses amounted to RMB 72,204 million, an increase of 35.34% from RMB 53,349 million in the first half of 2022[37]. - The total comprehensive income for the six months ended June 30, 2023, was a loss of RMB 2,563 million, compared to a loss of RMB 21,622 million for the same period in 2022, showing an improvement in financial performance[176]. Passenger and Cargo Statistics - The company transported 64.996 million passengers and handled 706,000 tons of cargo and mail during the reporting period[16]. - The total passenger transportation volume reached 64.99 million, an increase of 118.62% compared to the same period last year[27]. - The total cargo and mail transportation volume was 70.6 thousand tons, generating revenue of RMB 7.18 billion[24]. - The domestic passenger kilometers (RPK) increased by 108.24% to 96,663.87 million[27]. - The international passenger kilometers (RPK) surged by 529.50% to 11,706.75 million[27]. - Passenger revenue amounted to RMB 60,958 million, reflecting a significant increase due to the recovery in production and an increase in flight transportation volume[33]. Safety and Environmental Responsibility - China Southern Airlines has received the highest safety award in Chinese civil aviation, the "Diamond Two-Star Award" for flight safety[1]. - The company achieved a total of 132.7 million safe flight hours, maintaining industry-leading safety levels[23]. - The company emphasizes its commitment to corporate governance and environmental responsibility in its operations[5]. - The company has complied with the corporate governance code as per the listing rules for the six months ended June 30, 2023[77]. - The company achieved compliance with national pollution discharge standards, with no violations of environmental laws or regulations reported during the reporting period[86]. - The company conducted environmental impact assessments for construction projects and obtained discharge permits, adhering to the permit requirements[88]. Capital and Investment - Capital commitments as of June 30, 2023, amounted to approximately RMB 107,214 million, primarily for aircraft and related equipment purchases[15]. - The company plans to issue up to 5,436,269,319 new A-shares, raising a total of up to RMB 17.5 billion for purchasing new aircraft and supplementing working capital[114]. - The company will also issue up to 855,028,969 new H-shares, raising up to HKD 2.9 billion to supplement general operating funds[114]. - The funds raised will be used to expand the fleet size, optimize the age structure of the aircraft, and enhance operational capacity, supporting the increase in flight frequency and the opening of new routes[118]. Risk Management - The company faces risks from intensified industry competition and the need for effective marketing strategies to counter high-speed rail competition[56][57]. - The company recognizes the impact of macroeconomic policies and external factors such as pandemics and natural disasters on its operations and performance[54][55]. - A 10% fluctuation in average fuel prices could lead to an increase or decrease in operating costs by RMB 2,280 million[62]. - The company has entered into crude oil forward contracts to mitigate fuel price risk, with a fair value of RMB 4 million as of June 30, 2023[197]. Employee and Management - As of June 30, 2023, the group had a total of 98,490 employees, an increase from 97,899 employees as of December 31, 2022[76]. - Employee costs for the reporting period amounted to RMB 14,297 million, compared to RMB 12,543 million for the six months ended June 30, 2022, representing an increase of approximately 14%[76]. - The company has appointed several new senior management personnel, including a new Vice President and Chief Flight Officer[71]. Shareholder and Corporate Governance - The company did not experience any changes in its controlling shareholder or actual controller during the reporting period[151]. - The top shareholder, China Southern Airlines Group, holds 51.90% of shares, totaling 9,404,468,936 shares[147]. - The company has committed to supporting the implementation of an equity incentive plan following the completion of the share reform work[103]. - The company will continue to fulfill its information disclosure obligations as required by regulations[144].

Fleet and Operations - China Southern Airlines reported an operating fleet of 897 aircraft, including models from Boeing and Airbus, as of June 30, 2023[3]. - The company operates a comprehensive route network covering domestic and international destinations, with 20 subsidiaries and 52 overseas offices[3]. - The airline achieved a passenger volume of 100 million in 2022, making it the largest airline in China by passenger traffic[3]. - The group achieved a total of 132.7 million hours of safe flight operations and transported 64.996 million passengers in the first half of 2023[18]. - The average age of the fleet is 9.0 years, with a total of 897 aircraft at the end of the reporting period[31]. Financial Performance - Operating revenue for the first half of 2023 reached RMB 71,830 million, a 75.98% increase compared to RMB 40,817 million in the same period of 2022[12]. - Net loss attributable to equity holders of the company improved to RMB (2,877) million, a 74.96% reduction from RMB (11,490) million year-on-year[12]. - Net cash inflow from operating activities surged to RMB 16,831 million, a significant increase of 917.59% from RMB 1,654 million in the first half of 2022[12]. - Basic and diluted loss per share decreased to RMB (0.16) from RMB (0.68), reflecting a 76.47% improvement[13]. - The company reported a total comprehensive income for the six months ended June 30, 2023, was a loss of RMB 2,563 million, compared to a loss of RMB 21,622 million for the same period in 2022, showing an improvement in financial performance[177]. Revenue and Cost Management - Passenger revenue amounted to RMB 60,958 million, reflecting a significant increase of 128.03% compared to the same period in 2022[34]. - Operating expenses totaled RMB 72,204 million, an increase of 35.34% year-on-year, with a total operating expense to revenue ratio of 100.52%[37]. - The company aims to increase its revenue per available seat kilometer (RASK) by optimizing its flight schedules and capacity management[7]. - The average revenue per passenger kilometer (RPK) increased by 3.70% to RMB 0.56, indicating improved pricing power[29]. Market Position and Strategy - China Southern Airlines is focused on expanding its market presence and enhancing operational efficiency through strategic initiatives[3]. - The airline's management is optimistic about future growth prospects, anticipating a recovery in air travel demand post-pandemic[3]. - The company is exploring potential mergers and acquisitions to strengthen its market position and expand its service offerings[3]. - The company is focusing on high-quality development strategies, including five major development strategies and six major transformations to enhance operational efficiency and market competitiveness[21]. Sustainability and Environmental Management - The company is committed to sustainability and has implemented measures to reduce its carbon footprint in operations[3]. - The company’s environmental management includes being listed as a key pollutant discharge unit in Shenyang, focusing on pollution prevention and environmental management[81]. - The company achieved compliance with national pollution discharge standards during the reporting period, with no violations of environmental laws or regulations[87]. - The company is actively monitoring and managing its emissions to align with environmental regulations and standards[84]. Employee and Management - As of June 30, 2023, the total number of employees in the group was 98,490, an increase from 97,899 as of December 31, 2022[77]. - Employee costs for the group totaled RMB 14,297 million in the first half of 2023, compared to RMB 12,543 million for the same period in 2022, reflecting a year-on-year increase of approximately 14%[77]. - The company appointed several new senior management personnel, including Gao Fei as Deputy General Manager and Wang Renjie as Chief Pilot[71]. Risks and Challenges - The company faces risks from intensified industry competition and potential impacts from macroeconomic policies[54][56]. - The company has significant capital expenditure risks primarily related to aircraft acquisition, which may lead to substantial operating profit declines if business conditions deteriorate[60]. - A 10% fluctuation in average fuel prices would impact operating costs by RMB 2,280 million, highlighting the sensitivity to international oil price changes[62]. Capital and Financing - The company has a total credit facility of approximately RMB 412,139 million, with RMB 114,594 million utilized, leaving approximately RMB 297,545 million available for future capital expenditures[43]. - The company plans to issue up to 5,436,269,319 new A-shares, raising a total of up to RMB 17,500 million for purchasing new aircraft and supplementing working capital[115]. - The total amount raised from the 2020 A-share issuance was RMB 12,782,393,520.97, with a net amount of RMB 12,776,085,313.42 after deducting fees[114]. Compliance and Governance - The company’s board confirmed compliance with the corporate governance code during the six months ending June 30, 2023[78]. - The interim financial report was approved by the board on August 29, 2023, and is prepared in accordance with the same accounting policies as the 2022 annual financial report[179]. - The company has not been involved in any illegal activities or received penalties during the reporting period[111].

证券代码：600029 证券简称：南方航空 公告编号：临 2023-047 中国南方航空股份有限公司 2023 年 7 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。 2023年7月，中国南方航空股份有限公司及所属子公司（以 下简称"本集团"）客运运力投入（按可利用座公里计）同比上 升51.69%，其中国内、地区、国际分别同比上升30.35%、1153.57%、 717.68%；旅客周转量（按收入客公里计）同比上升75.39%，其 中国内、地区、国际分别同比上升49.76%、1381.95%、893.88%； 客座率为80.92%，同比上升10.93个百分点，其中国内、地区、 国际分别同比上升10.43、12.83、14.75个百分点。 货运方面，2023年7月货运运力投入（按可利用吨公里—货 邮运计）同比上升28.12%；货邮周转量（按收入吨公里—货邮运 计）同比上升6.79%；货邮载运率为46.72%，同比下降9.33个百 分点。 2023年7月，本集团新增主要航线情况如下：重庆-运城-大 1 连-运 ...

Financial Performance - Operating revenue for the first quarter reached RMB 34,055 million, representing a year-on-year increase of 58.61%[4] - Net profit attributable to shareholders was a loss of RMB 1,898 million, with a significant reduction in losses compared to the previous year[4][7] - The company reported a significant recovery in passenger revenue due to the resurgence of the air passenger market[7] - Total operating revenue for Q1 2023 reached RMB 34,055 million, a significant increase from RMB 21,471 million in Q1 2022, representing a growth of 58.4%[18] - The net profit for Q1 2023 was a loss of RMB 1,724 million, compared to a loss of RMB 4,539 million in Q1 2022, showing an improvement of 62.0%[21] - The company reported a basic and diluted earnings per share of -0.10 yuan for Q1 2023, compared to -0.27 yuan in Q1 2022[21] Cash Flow - Net cash flow from operating activities amounted to RMB 8,808 million, reflecting a substantial increase of 51,711.76% year-on-year[4][7] - In Q1 2023, the cash inflow from operating activities was RMB 38,946 million, a significant increase from RMB 23,889 million in Q1 2022, representing a growth of 62.9%[22] - The net cash flow from operating activities reached RMB 8,808 million in Q1 2023, compared to only RMB 17 million in Q1 2022, indicating a substantial improvement[23] - Cash outflow for investment activities was RMB 2,536 million in Q1 2023, down from RMB 3,441 million in Q1 2022, reflecting a decrease of 26.3%[23] - The net cash flow from investment activities was -RMB 1,549 million in Q1 2023, an improvement from -RMB 2,834 million in Q1 2022[23] - Cash inflow from financing activities totaled RMB 12,400 million in Q1 2023, a decrease from RMB 28,910 million in Q1 2022, representing a decline of 57.0%[24] - The net cash flow from financing activities was -RMB 8,176 million in Q1 2023, compared to RMB 1,081 million in Q1 2022, indicating a negative shift[24] - The total cash and cash equivalents at the end of Q1 2023 were RMB 18,948 million, down from RMB 19,720 million at the end of Q1 2022[24] - The company received RMB 4,200 million from other financing activities in Q1 2023, compared to RMB 14,400 million in Q1 2022, showing a decrease of 70.8%[24] - The cash inflow from the disposal of fixed assets and other long-term assets was RMB 852 million in Q1 2023, up from RMB 517 million in Q1 2022, marking a growth of 64.6%[23] Assets and Liabilities - Total assets at the end of the reporting period were RMB 308,760 million, a decrease of 1.04% from the previous year[4] - The total assets as of March 31, 2023, were RMB 308,760 million, a decrease from RMB 312,001 million at the end of 2022[17] - Total liabilities decreased to RMB 255,370 million as of March 31, 2023, from RMB 256,887 million at the end of 2022[16] - Long-term borrowings increased to RMB 18,070 million as of March 31, 2023, compared to RMB 15,316 million at the end of 2022, reflecting a growth of 11.5%[16] Shareholder Information - Shareholders' equity attributable to the parent company was RMB 39,159 million, down 4.62% from the previous year[4] - The total number of ordinary shareholders at the end of the reporting period was 139,577[8] - The largest shareholder, China Southern Airlines Group Co., Ltd., holds 51.90% of the shares[8] Investments and Assets Management - The company reported a long-term equity investment of RMB 6,290 million as of March 31, 2023, compared to RMB 6,205 million at the end of 2022[14] - Fixed assets increased to RMB 90,939 million from RMB 90,810 million, reflecting ongoing investments in infrastructure[14] - The company has established 44 SPV companies, all of which have received guarantees[12] - The total amount guaranteed by the company for SPV companies reached USD 54.33 billion, equivalent to approximately RMB 373.34 billion[12] - The company has a total of 20 SPV companies with guaranteed amounts ranging from USD 0.25 million to USD 5.88 million[11] - The company's inventory stood at RMB 1,535 million, up from RMB 1,387 million, indicating potential growth in sales[14] Other Income and Expenses - Non-recurring gains and losses included RMB 160 million from the disposal of non-current assets and RMB 142 million from government subsidies[5][6] - The company reported an increase in other income to RMB 777 million in Q1 2023, up from RMB 550 million in Q1 2022, marking a growth of 41.2%[19] - The company paid RMB 8,605 million to employees in Q1 2023, an increase from RMB 7,398 million in Q1 2022, reflecting a rise of 16.3%[22] Tax and Deferred Income - The company’s deferred income tax assets remained stable at RMB 12,473 million as of both March 31, 2023, and December 31, 2022[15] - The weighted average return on net assets increased by 2.36 percentage points compared to the previous year[4][7]

Fleet and Operations - China Southern Airlines operates a fleet of 894 aircraft, including Boeing 787, 777, 737 series, and Airbus A380, 350, 330, 320 series[8]. - The company has 21 subsidiaries and 53 overseas offices, enhancing its operational reach globally[8]. - The fleet size as of December 31, 2022, was 894 aircraft, with a net book value of RMB 188,883 million[24]. - The average age of the fleet is 8.7 years, with an average daily utilization rate of 5.04 hours and an overall load factor of 62.48%[84]. - The company introduced a total of 23 aircraft during the reporting period, including 4 A350 series, 10 A320 series, 1 B777 series, and 8 ARJ21 aircraft[86]. - The company plans to deliver and phase out aircraft according to the following schedule: 2023-2025, with a total of 1,059 aircraft expected by 2025, including 1,040 passenger aircraft and 19 cargo aircraft[111]. Market Position and Strategy - The company holds a market share of approximately 48.5% in the Guangzhou market and has surpassed 50% in flight slots at Beijing Daxing International Airport, establishing itself as the largest base company[9]. - The company aims to strengthen its presence in the Guangdong-Hong Kong-Macao Greater Bay Area, continuing to develop its strategic hubs in Guangzhou and Beijing[9]. - The company has established a strategic network structure centered around key markets, particularly focusing on the Guangdong-Hong Kong-Macao Greater Bay Area[51]. - The company is focusing on enhancing service quality and optimizing structural adjustments through six major actions aimed at transitioning from speed to quality[52]. - The company aims to enhance operational efficiency and service quality, focusing on customer-centric flight punctuality indicators and optimizing flight support processes[109]. Financial Performance - Operating revenue for 2022 was RMB 87,059 million, a decrease of 14.35% compared to RMB 101,644 million in 2021[17]. - Net loss attributable to equity holders of the company was RMB 32,699 million in 2022, an increase of 170.11% from a loss of RMB 12,106 million in 2021[17]. - Basic and diluted loss per share for 2022 was RMB (1.90), compared to RMB (0.75) in 2021, reflecting an increase of 153.33%[18]. - Total passenger traffic (RPK) decreased by 33.03% to 102,077.70 million kilometers in 2022 from 152,426.29 million kilometers in 2021[19]. - Total passenger numbers decreased by 36.41% to 62,636.06 thousand in 2022 from 98,504.66 thousand in 2021[20]. - Passenger revenue dropped by 20.39% from RMB 75,392 million in 2021 to RMB 60,017 million in 2022, with total passenger numbers decreasing by 36.41% to 63 million[59]. Operational Efficiency and Safety - The airline has been awarded the highest safety award in Chinese civil aviation, the "Diamond Two-Star Award for Flight Safety," in June 2018[8]. - The company maintained a leading on-time performance rate through enhanced flight management strategies[29]. - The company achieved a total passenger transportation of 62.64 million people and a cargo mail transportation volume of 1.33 million tons in 2022[34]. - The company maintained a flight safety record of 155.7 million hours during the reporting period, enhancing safety management systems[36]. - The company is committed to optimizing its service offerings and enhancing customer experience through strategic market expansions[9]. Investment and Future Outlook - Future outlook includes continued investment in fleet modernization and technology to improve operational efficiency and service quality[9]. - In 2022, the company completed fixed asset investments exceeding RMB 120 billion, marking three consecutive years of investments over RMB 100 billion[46]. - The company plans to enhance its domestic market capacity and improve international route profitability, with new domestic routes including Guangzhou-Huaihua and Guangzhou-Longyan[88]. - The company plans to resume international routes including Guangzhou-Melbourne and Guangzhou-San Francisco in 2023[88]. - The company aims to build a world-class aviation transport enterprise, focusing on quality and efficiency, and implementing five major strategies for high-quality development[103]. Risks and Challenges - The company faces macroeconomic risks that directly impact air passenger and cargo demand, influenced by domestic and international economic conditions[114]. - Regulatory risks from government policies regarding new airline establishments, route openings, and pricing mechanisms may affect operational performance and future business development[115]. - The company is exposed to risks from significant external events such as pandemics and natural disasters, which can disrupt normal operations and adversely affect long-term development[116]. - Increased competition within the industry may impact revenue targets if the company fails to enhance operational quality on international routes[117]. - The company is at risk from alternative transportation modes, particularly high-speed rail, which could affect operational efficiency if effective marketing strategies are not implemented[118]. Financial Management and Capital Structure - Total interest-bearing liabilities increased to RMB 215,073 million in 2022 from RMB 199,307 million in 2021, with a notable rise in borrowings[72]. - The debt-to-asset ratio increased to 82.27% in 2022 from 73.85% in 2021, reflecting a rise of 8.42 percentage points due to increased borrowings[74]. - The company raised approximately RMB 6.05 billion through a private placement of shares during the reporting period[41]. - The company did not declare a cash dividend for 2022 due to operational losses, pending approval from the annual general meeting[129]. - The company’s major shareholder, China Southern Airlines Group, holds approximately 63.18% of the total issued shares post-conversion of the convertible bonds[186]. Related Party Transactions and Governance - The independent non-executive directors confirmed that all related party transactions were conducted in accordance with pricing principles and were in the best interest of shareholders[190]. - The group strictly complied with relevant laws and regulations, ensuring operational safety and compliance[145]. - The group maintained sufficient public float in compliance with listing rules throughout the reporting period[150]. - The company has appointed KPMG for the 2023 financial reporting services, maintaining the same auditor for the past three years[195].

Financial Performance - Total operating revenue for 2022 was RMB 87,059 million, a decrease of 14.3% from RMB 101,644 million in 2021[3]. - Operating expenses totaled RMB 115,262 million, slightly down from RMB 116,340 million in 2021, resulting in an operating loss of RMB 22,542 million compared to a loss of RMB 9,929 million in the previous year[4]. - Net loss for the year was RMB 33,716 million, significantly higher than the net loss of RMB 11,016 million in 2021, with a basic and diluted loss per share of RMB (1.90) compared to RMB (0.75) in 2021[4]. - The total comprehensive income for the year 2022 was approximately RMB (32,699) million, compared to RMB (33,608) million in 2021, indicating a decrease of about 2.7%[10]. - The total operating revenue for the company was impacted by global economic slowdown, with a GDP growth of only 3.0% in China for 2022[55]. - The company reported a significant increase in non-current assets, with RMB 23,739 million added in the aviation transportation segment for the year ended December 31, 2022[18]. - The company reported a pre-tax loss of RMB 31,550 million for 2022, compared to a loss of RMB 13,910 million in 2021, representing a significant increase in losses[24]. Revenue Breakdown - Passenger transport revenue for 2022 was RMB 60,017 million, a decrease from RMB 75,392 million in 2021, reflecting a decline of approximately 20.4%[15]. - Cargo and mail transport revenue for 2022 was RMB 20,884 million, slightly up from RMB 19,887 million in 2021, representing an increase of about 5.0%[15]. - Domestic revenue for the year 2022 was RMB 57,256 million, a decrease from RMB 76,517 million in 2021, while international revenue increased to RMB 29,249 million from RMB 24,739 million[23]. - Passenger revenue decreased by 20.39% from RMB 75,392 million in 2021 to RMB 60,017 million in 2022, contributing 74.19% of total transportation revenue[72]. - Domestic passenger revenue fell by 27.58% to RMB 49,723 million, accounting for 82.85% of total passenger revenue[72]. - International passenger revenue increased by 50.90% to RMB 9,828 million, representing 16.38% of total passenger revenue[73]. - Cargo and mail revenue rose by 5.01% to RMB 20,884 million, making up 25.81% of total transportation revenue[73]. Assets and Liabilities - Non-current assets as of December 31, 2022, amounted to RMB 278,792 million, down from RMB 285,345 million in 2021[7]. - Current liabilities increased to RMB 141,458 million from RMB 110,990 million in 2021, contributing to a net current liability of RMB (108,004) million compared to RMB (73,124) million in the previous year[8]. - The company’s total assets less current liabilities stood at RMB 170,788 million, down from RMB 212,221 million in 2021[8]. - The company’s net assets decreased to RMB 55,359 million from RMB 84,508 million in 2021[8]. - Total liabilities increased to RMB 256,887 million in 2022 from RMB 238,703 million in 2021, reflecting a rise of approximately 7.5%[52]. - The company's total equity decreased to RMB 55,114 million in 2022 from RMB 84,245 million in 2021, a decline of about 34.5%[52]. - Total borrowings increased to RMB 119,780 million in 2022 from RMB 96,267 million in 2021, reflecting a growth of 24.5%[45]. Operational Efficiency and Strategy - The company plans to focus on expanding its market presence and enhancing operational efficiency in the upcoming fiscal year[2]. - The company aims to ensure aviation safety for the year 2023 by enhancing safety quality and establishing a digital safety ecosystem[96]. - The company plans to capitalize on market recovery opportunities and improve operational performance by restoring international flights and enhancing customer management systems[97]. - A cost control mechanism will be established to enhance risk resistance and optimize asset-liability structures, aiming to prevent debt and funding risks[98]. - The company will focus on improving operational efficiency and service quality, implementing a customer-centric flight punctuality indicator system[99]. - Strategic initiatives will be implemented to enhance the domestic route network and restore international routes, with a focus on high-value customer operations[100]. - The company will deepen reforms to stimulate internal growth, including optimizing performance evaluation and compensation mechanisms[101]. Cash Flow and Expenses - Cash and cash equivalents decreased to RMB 19,889 million from RMB 21,456 million in 2021[7]. - The company incurred interest expenses of RMB 6,096 million in the aviation transportation segment for the year ended December 31, 2022[18]. - The effective income tax expense for 2022 was RMB 2,166 million, compared to an income tax benefit of RMB 2,894 million in 2021[30]. - The company did not recommend any dividends for the years ended December 31, 2022, and 2021[33]. - The company recorded a bad debt provision of RMB 2,672 million for accounts receivable in 2022, compared to RMB 2,897 million in 2021, indicating a decrease of about 7.8%[41]. - The company reported a net cash outflow from operating activities of RMB 2,450 million for the year ended December 31, 2022[80]. Market and Economic Conditions - The global economic growth forecast for 2023 is 2.9%, with rising inflation and tightening monetary policies expected to slow down economic growth[95]. - The company organized 9,098 passenger-to-freight flight conversions, enhancing cargo operations[57]. - The market share at Beijing Daxing Airport reached 53.7%, indicating a strong presence in the region[59]. - The company raised approximately RMB 60.5 billion through a non-public stock issuance project[59].

Financial Performance - Operating revenue for Q3 2022 was RMB 29,344 million, an increase of 9.01% year-on-year[4] - Net profit attributable to shareholders for Q3 2022 was a loss of RMB 6,099 million, a deterioration of 326.21% compared to the same period last year[4] - Net profit attributable to shareholders after deducting non-recurring gains and losses for Q3 2022 was a loss of RMB 6,571 million, an increase of 298.24% year-on-year[4] - Total operating revenue for the first three quarters of 2022 was RMB 70,161 million, a decrease of 10.4% compared to RMB 78,495 million in the same period of 2021[17] - Net profit for the first three quarters of 2022 was a loss of RMB 18,135 million, compared to a loss of RMB 5,100 million in 2021[18] - Basic and diluted earnings per share for Q3 2022 were both RMB -0.36, reflecting a 350.00% decline year-on-year[4] - Basic and diluted earnings per share for the first three quarters of 2022 were both -1.03 RMB, compared to -0.38 RMB in 2021[20] Cash Flow and Liquidity - Cash flow from operating activities for the year-to-date was RMB 7,300 million, down 44.52% compared to the previous year[4] - Operating cash inflow for the first three quarters of 2022 was RMB 83,901 million, a decrease of 5.5% from RMB 88,760 million in the same period of 2021[21] - Cash outflow from operating activities totaled RMB 76,601 million, an increase of 1.3% compared to RMB 75,602 million in the previous year[22] - Net cash flow from operating activities was RMB 7,300 million, down 44.7% from RMB 13,158 million in the first three quarters of 2021[22] - Cash inflow from investment activities was RMB 5,068 million, significantly higher than RMB 1,554 million in the same period last year[22] - Net cash flow from investment activities was -RMB 2,671 million, an improvement from -RMB 12,208 million in the previous year[22] - Cash inflow from financing activities was RMB 79,291 million, a decrease of 35.7% from RMB 123,324 million in the first three quarters of 2021[23] - Net cash flow from financing activities was -RMB 11,279 million, worsening from -RMB 4,386 million in the same period last year[23] - The ending cash and cash equivalents balance was RMB 14,886 million, down from RMB 21,979 million at the end of the previous year[23] - The company received RMB 5,600 million in tax refunds, a significant increase from RMB 47 million in the same period of 2021[21] Assets and Liabilities - Total assets at the end of the reporting period were RMB 309,794 million, a decrease of 4.07% from the end of the previous year[4] - Total assets as of September 30, 2022, were RMB 309,794 million, down from RMB 322,948 million at the end of 2021[16] - Total liabilities increased to RMB 243,706 million as of September 30, 2022, compared to RMB 238,703 million at the end of 2021[15] - Non-current assets totaled RMB 280,186 million as of September 30, 2022, a slight decrease from RMB 285,082 million at the end of 2021[16] - The company’s total equity decreased to RMB 66,088 million as of September 30, 2022, down from RMB 84,245 million at the end of 2021[16] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 137,795[7] - The company has a total of 6,147,463,051 shares held by its largest shareholder, China Southern Airlines Group[8] - The company has a total of 2,648,836,036 H shares held by its wholly-owned subsidiary, Nanjing Holdings, indicating a significant stake in the company[8] Operational Challenges - The company faced multiple adverse factors including the pandemic, high oil prices, and depreciation of the RMB, leading to increased losses[6] Other Financial Metrics - Cash and cash equivalents decreased to RMB 15,195 million from RMB 21,841 million, reflecting a reduction of about 30.4%[12] - The accounts receivable increased to RMB 4,499 million, up from RMB 2,894 million, indicating an increase of approximately 55.5%[12] - Long-term equity investments increased to RMB 6,084 million from RMB 5,977 million, showing a growth of approximately 1.8%[13] - The company reported a financial expense of RMB 8,470 million for the first three quarters of 2022, significantly higher than RMB 3,726 million in 2021[17] - Deferred tax assets increased to RMB 16,903 million as of September 30, 2022, compared to RMB 12,831 million at the end of 2021[14] - The company reported a significant increase in other receivables, rising to RMB 1,542 million from RMB 1,275 million, which is an increase of approximately 20.9%[13] - The company has provided guarantees totaling USD 53.72 billion for 43 SPV companies, which is within the approved guarantee limit by the shareholders' meeting[11] - The company has established SPVs with various guaranteed amounts, with the highest being USD 5.88 billion for SPV 9[10] - The company reported a cash outflow of RMB 18,820 million for employee payments, a decrease of 8.0% from RMB 20,461 million in the previous year[22] - The company's fixed assets decreased to RMB 88,679 million from RMB 90,817 million, a decline of about 2.4%[13]