Summary of Key Points Core Viewpoint - As of July 14, a total of 138 stocks reached their 52-week highs, indicating a strong performance in the market, with notable leaders including Green Heart Group Holdings, OK Blockchain, and Pearl River Steel Pipe [1]. Group 1: Top Performers - Green Heart Group Holdings (02999) achieved a closing price of 0.013 with a peak of 0.017, marking a 70.00% increase [1]. - OK Blockchain (01499) closed at 0.680, reaching a high of 0.690, reflecting a 48.39% rise [1]. - Pearl River Steel Pipe (01938) had a closing price of 0.335 and a peak of 0.340, resulting in a 33.33% increase [1]. Group 2: Other Notable Stocks - Weishi Jiajie (00856) saw a 32.01% increase, closing at 8.870 with a high of 11.300 [1]. - Cloud Intelligence (09678) reached a high of 520.000, closing at 510.000, which is a 20.99% increase [1]. - China Chengtong Development Group (00217) closed at 0.165 with a peak of 0.166, marking a 14.48% rise [1]. Group 3: Additional Stocks with Significant Increases - Sihuan Pharmaceutical (00460) closed at 1.380, reaching a high of 1.430, which is a 14.40% increase [1]. - Taited Pharmaceutical (03880) had a closing price of 36.950 and a peak of 37.400, reflecting a 13.85% rise [1]. - Beihai Kangcheng-B (01228) closed at 0.850 with a high of 0.960, resulting in a 12.94% increase [1].

Financial Performance - Total revenue for 2024 reached HKD 5,203.8 million, representing a year-on-year increase of 9.2% from HKD 4,763.7 million in 2023[24]. - Profit attributable to shareholders surged to HKD 257.5 million, a significant increase of 809.9% compared to HKD 28.3 million in 2023[24]. - Earnings per share for 2024 was HKD 0.346, reflecting a robust growth of 810.5% from HKD 0.038 in 2023[24]. - EBITDA for 2024 was HKD 5,038 million, showing a consistent upward trend from previous years[14]. - The total revenue for the year ended December 31, 2024, was HKD 5.204 billion, an increase from HKD 4.764 billion in 2023, representing a growth of approximately 9.2%[52]. - The net profit attributable to shareholders for the year was HKD 257.5 million, compared to HKD 28.3 million in the previous year, reflecting a substantial increase of approximately 812%[52]. - The EBITDA for 2024 reached HKD 5,038.4 million, an increase of HKD 661.4 million or 15.1% from HKD 4,377.0 million in 2023[54]. - Operating profit decreased slightly to HKD 898.7 million in 2024 from HKD 935.2 million in 2023[93]. Assets and Liabilities - Total assets amounted to HKD 58,240 million as of December 31, 2024[20]. - The total interest-bearing debt was HKD 48,577 million, with a debt-to-asset ratio of 83.4%[20][17]. - The total assets of the group as of December 31, 2024, were HKD 58,239.7 million, a decrease of HKD 1,585.0 million or 2.6% from HKD 59,824.7 million in 2023[54]. - The total liabilities decreased to HKD 52,911.5 million, down HKD 1,773.2 million or 3.2% from HKD 54,684.7 million in 2023[55]. - The total amount of bonds and financing notes decreased from HKD 5,943.5 million in 2023 to HKD 3,930.7 million in 2024, primarily due to the repayment of USD 240.3 million in bonds upon maturity[81]. - The total borrowings increased slightly by HKD 134.4 million or 0.3%, from HKD 42,911.8 million in 2023 to HKD 43,046.2 million in 2024[80]. - The group has a total of HKD 48,576.6 million in interest-bearing debt, which decreased by 3.8% from HKD 50,511.5 million in 2023[79]. Aircraft Operations - The company operated a fleet of 189 aircraft, consisting of 159 owned and 30 managed aircraft, serving 40 airline customers across 21 countries and regions[6]. - The company has 124 aircraft orders in its pipeline, indicating ongoing growth and expansion plans[6]. - The company completed the delivery of 19 aircraft during the fiscal year ending December 31, 2024[88]. - The total number of owned aircraft decreased from 165 in 2023 to 159 in 2024, with a notable increase in the Airbus A320 NEO series from 43 to 51[73]. - The total fleet size decreased from 165 aircraft to 159 aircraft, with 19 aircraft classified as held for sale as of December 31, 2024[72]. Dividends and Shareholder Returns - The board proposed a final dividend of HKD 0.18 per share, totaling HKD 0.30 per share for the year 2024, consistent with 2023[25]. - The board declared an interim dividend of HKD 0.12 per share, totaling approximately HKD 89.4 million[99]. - The proposed final dividend for the year ending December 31, 2024, is HKD 0.18 per share, an increase from HKD 0.15 per share in 2023[99]. - The company maintains a dividend policy aligned with its financial strategy, ensuring sufficient cash reserves for operational needs[101]. Market and Industry Outlook - In 2024, global air passenger demand is expected to grow by 10.4%, with a historic load factor of 83.5%[37]. - China's aviation industry recorded 730 million passengers in 2024, representing a year-on-year growth of 17.9%[37]. - The group anticipates global passenger numbers to exceed 5.2 billion by 2025, with a year-on-year growth of 6.7%, and expects the aviation market to continue to grow[49]. Financing and Capital Structure - The group secured approximately HKD 24 billion in new and renewed financing, including a USD 400 million warehouse-style aircraft financing project, marking the first issuance by an Asian aircraft leasing company since 2015[45]. - The group successfully issued RMB 1 billion perpetual medium-term notes at a record low interest rate of 2.7% during the year, further optimizing its capital structure[46]. - The group plans to optimize its capital structure and enhance operational strength in response to changing domestic and international interest rate environments[49]. - The group has established a stock option plan with a vesting period of two years, contingent upon performance targets set by the CEO[170]. Governance and Management - The board of directors underwent changes, with several appointments and resignations noted, including the appointment of Mr. Li Guohui as Chief Financial Officer on March 19, 2024[120]. - The board of directors is required to rotate one-third of its members at each annual general meeting, ensuring governance and compliance[122]. - The audit committee consists of independent non-executive directors, including Mr. Fan Junhua (Chairman), Mr. Zhuo Shengquan, Dr. Xie Xiaodong, and Dr. Hong Wen, with discussions on financial reporting and risk management[196]. - Deloitte will replace PwC as the company's auditor effective October 22, 2024, following PwC's resignation on October 21, 2024[199]. Corporate Social Responsibility - The total charitable donations made by the group during the year were approximately HKD 140,000[119]. - The company has established a strategy for sustainable development, with a focus on environmental, social, and governance issues[124].

Summary of the Conference Call Company Overview - The conference call featured China Aircraft Leasing Group, with key speakers including Chief Strategy Officer and Co-CFO Li Bo-hui and Director of Investor Relations Ivy [1][2]. Financial Performance - For 2024, the company reported a total revenue of HKD 5.204 billion, a year-on-year increase of 9% [1]. - Shareholder earnings reached HKD 258 million, maintaining a consistent dividend policy with a final dividend of HKD 0.18 [1]. - New assets grew by 4% to HKD 5.328 billion, with a debt ratio decreasing to 83.4% [2]. - The company achieved an international investment-grade rating from China Chengxin International Credit Rating Co. [2]. Business Operations - The leasing business was active, signing new leases or letters of intent for 48 aircraft, with 17 aircraft delivered [2]. - The company sold 27 out of 50 aircraft signed under SPA, setting a historical record for aircraft transactions [2]. - The fleet composition remains focused on narrow-body aircraft, which constitute 90% of the fleet, ensuring liquidity and value stability [3]. Market Outlook - The global and Chinese aviation markets are experiencing growth, with passenger traffic reaching new records [4]. - Supply chain issues, particularly in OEM production capacity, are causing a persistent aircraft supply shortage, benefiting asset values and rental income [4]. - The Federal Reserve's interest rate cuts are expected to stimulate the aircraft trading market and reduce dollar borrowing costs [4]. Financial Management - The company reported a net income of HKD 213 million, with government support contributing HKD 316 million to operations [5]. - Total financing in the previous year was HKD 24 billion, with an average financing cost of 5.5% [6]. - The company is actively managing its debt structure to improve its international credit rating and reduce interest expenses [7]. Fleet Management - The owned fleet decreased slightly to 159 aircraft, while the managed fleet increased to 30 aircraft, representing 16% of the total fleet [8]. - The company plans to maintain a balance between aircraft deliveries and sales, with 25 aircraft expected to be delivered and sold in 2025 [8]. Customer Base and Expansion - The proportion of overseas customers exceeded 30%, with a focus on first-tier airlines [9]. - The company anticipates a positive rental income outlook due to the high demand for aircraft and the upcoming lease expirations in 2025-2027 [9]. Challenges and Risks - The supply chain issues affecting Boeing and Airbus are primarily due to engine shortages and production quality concerns [12]. - The company is aware of potential delivery delays for aircraft, which could impact fleet expansion plans [13]. Strategic Focus - The company aims to enhance its asset management capabilities and increase management fee income as a growth driver [19]. - There is a strategic emphasis on expanding the managed fleet and optimizing asset management to improve profitability [20]. Future Projections - The company expects to continue benefiting from a strong demand for aircraft leasing, despite potential supply chain constraints [25]. - The leasing market is projected to remain robust, with a significant backlog of orders from manufacturers [25]. Conclusion - Overall, China Aircraft Leasing Group is positioned for continued growth, supported by a strong financial performance, strategic fleet management, and favorable market conditions, despite facing challenges related to supply chain disruptions and aircraft delivery timelines [36][42].

Financial Performance - Total revenue for the year ended December 31, 2024, reached HKD 5,203.8 million, an increase of 9.2% compared to HKD 4,763.7 million in 2023[3] - Profit attributable to shareholders surged to HKD 257.5 million, reflecting a remarkable growth of 809.9% from HKD 28.3 million in the previous year[3] - The company's earnings per share (basic) increased to HKD 0.346, a significant rise of 810.5% from HKD 0.038 in 2023[3] - The group achieved an EBITDA of HKD 5,038.4 million, marking a 15.1% increase from HKD 4,377.0 million in 2023[3] - The profit for 2024 was HKD 325.6 million, up HKD 105.4 million or 47.9% from 2023's HKD 220.2 million[40] - The total revenue for 2024 was HKD 5,203.8 million, an increase of HKD 440.1 million or 9.2% compared to 2023's HKD 4,763.7 million[42] - The company reported a total comprehensive income of HKD 142,236,000 for the year, compared to HKD 77,953,000 in 2023[96] Aircraft Operations and Fleet Management - The average passenger load factor for the airline subsidiary exceeded 70%, with over 1 million passengers transported and more than 9,000 flights operated during the year[13] - The company delivered 17 new aircraft and purchased 2 used aircraft during the review period[24] - The company's fleet consisted of 189 aircraft as of December 31, 2024, with 90% of owned aircraft being narrow-body models, maintaining a 100% rental rate[27] - The total fleet size decreased from 165 aircraft on December 31, 2023, to 159 aircraft on December 31, 2024[40] - The number of aircraft classified as held for sale increased by 289.8% from 4 aircraft in 2023 to 19 aircraft in 2024[64] - The total number of owned aircraft decreased from 165 in 2023 to 159 in 2024, with a notable increase in the A320 NEO series from 43 to 51[68] - The group completed the delivery of 19 aircraft during the year ending December 31, 2024[89] Financial Management and Capital Structure - The group issued its first perpetual medium-term notes in the Chinese market, diversifying its funding sources[10] - The group secured approximately HKD 24 billion in new and renewed financing, including aircraft project loans and RMB bonds, enhancing liquidity for business development[32] - The group issued its first USD 400 million warehouse-style aircraft financing in October 2024, marking a significant innovation in financing channels since 2015[32] - The group successfully issued RMB 3 billion and RMB 12 billion medium-term notes with interest rates of 2.75% and 3.3%, respectively, optimizing its capital structure[33] - The total amount of bonds and financing notes decreased significantly from HKD 5,943.5 million in 2023 to HKD 3,930.7 million in 2024, primarily due to the repayment of USD 240.3 million in bonds[80] - The total borrowings increased slightly by HKD 134.4 million or 0.3%, from HKD 42,911.8 million in 2023 to HKD 43,046.2 million in 2024[78] - The company plans to consider equity and debt financing opportunities to support rapid expansion and has established multiple aircraft investment platforms[83] Market and Growth Strategy - The global air passenger demand is expected to grow by 10.4% in 2024, with China's aviation market showing a record 730 million passengers, a 17.9% increase year-on-year[23] - The company aims to leverage its strengths to enhance its role in the global aviation market and create greater value for stakeholders[18] - The company plans to continue optimizing financial management and expanding its global operations in response to market opportunities[23] - The group aims to expand its global customer base and provide comprehensive aircraft lifecycle solutions in response to market opportunities[36] - The anticipated continuation of the interest rate reduction cycle is expected to lower market funding costs and accelerate the recovery of the global aircraft trading market[36] - The company plans to continue focusing on operational efficiency and cost management to improve future cash flows and profitability[102] Awards and Recognition - The group received two awards from Airline Economics, recognizing its contributions to sustainable development and business innovation in the aviation sector[11] - The company achieved an investment-grade international rating for the first time, reflecting its strong market position and asset quality[15] - The company received AAA ratings from two domestic rating agencies for its wholly-owned subsidiary, reflecting strong operational strength and credit status[15] Dividends and Shareholder Returns - The final dividend per share proposed is HKD 0.18, alongside an interim dividend of HKD 0.12, maintaining a total annual dividend of HKD 0.30[7] - The company declared a final dividend of HKD 0.18 per share for 2024, up from HKD 0.15 per share in 2023, reflecting a 20% increase[152] - The board has proposed a final dividend of HKD 0.18 per share for the year ending December 31, 2024, an increase from HKD 0.15 per share in 2023[159] Compliance and Governance - The company has adhered to all applicable corporate governance codes as of December 31, 2024, except for the absence of the chairman at the annual general meeting[167] - The Audit Committee, consisting of independent non-executive directors, reviewed the accounting principles and practices adopted by the group, including discussions on audit, internal controls, risk management, and financial reporting[170] - The consolidated financial statements for the year ending December 31, 2024, have been reviewed and agreed upon by the external auditor, Deloitte[172] Future Outlook - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[93] - The group is evaluating the specific impact of the new Hong Kong Financial Reporting Standard 18 on its consolidated financial statements[110] - The group anticipates that the application of revised accounting standards will not have a significant impact on the consolidated financial statements in the foreseeable future[109]

中國飛機租賃集團控股有限公司 (根據開曼群島法例註冊成立的有限公司) 股份代號: 01848 2024 中期報告 全 球 視 野 佈 局 未 來 . ........... ES 27 一般資料 40 中期合併資產負債表 41 中期合併收益表 42 中期合併全面收益表 43 中期合併權益變動表 目錄 2 公司資料 4 管理層討論及分析 44 中期合併現金流量表 46 中期簡明合併財務資料附註 公司資料 2 中國飛機租賃集團控股有限公司 2024中期報告 | --- | --- | |----------------------------------------------------|------------------------------------------------------------------| | 董事會 | 註冊辦事處 | | 執行董事 | Maples Corporate Services Limited | | 張 明 翱 先 生 （董事會主席） | PO Box 309 | | 潘浩文先生 （首席執行官） | Ugland House | | 李國輝先生 （首席財務官兼首席策 ...

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 會 就 本 公 告 全 部 或任何部分內容而產生或因依賴該等內容而引致的任何損失承擔任何責任。 CHINA AIRCRAFT LEASING GROUP HOLDINGS LIMITED 中國飛機租賃集團控股有限公司 （根據開曼群島法例註冊成立的有限公司） （股份代號：1848） 截 至2024年6月30日止六個月 中期業績公告 中 國 飛 機 租 賃 集 團 控 股 有 限 公 司（「本公司」）董 事 會（「董事會」）公 佈 本 公 司 及 其 附 屬 公 司（「本集團」）截 至2024年6月30日止六個月之未經審核中期業績如下： 財務摘要 截 至6月30日止六個月 | --- | --- | --- | --- | |-------------------------------|-------------------|-------------------|--------| | | 2024 年 | 2023 年 | 變 動 | | ...

Financial Performance - Total revenue for 2023 reached HKD 4,764 million, an increase from HKD 4,171 million in 2022, representing a growth of 14.2%[10] - The profit attributable to shareholders for 2023 was HKD 28 million, a significant decrease from HKD 74 million in 2022, reflecting a decline of 62.2%[10] - The EBITDA for 2023 was HKD 4,377 million, demonstrating the company's operational efficiency[10] - For the fiscal year ending December 31, 2023, the total revenue of the group was HKD 4,763.7 million, representing a strong year-on-year growth of 14.2% compared to HKD 4,171.0 million in 2022[14] - The net profit attributable to shareholders for the year was HKD 28.3 million, a decrease from HKD 73.6 million in 2022[14] - Operating profit for 2023 was HKD 693.7 million, a decrease of HKD 81.5 million or 10.5% from HKD 775.2 million in 2022[31] - Adjusted profit attributable to shareholders was HKD 184.9 million, up HKD 148.7 million or 410.8% from HKD 36.2 million in 2022[31] Assets and Liabilities - The total assets of the company amounted to HKD 59.8 billion, reflecting a stable asset base[8] - The total assets of the group increased to HKD 59,825 million in 2023, up from HKD 55,332 million in 2022, reflecting a growth of 4.5%[11] - The total liabilities rose to HKD 54,685 million in 2023, compared to HKD 49,076 million in 2022, indicating an increase of 11.0%[11] - The total liabilities increased by 11.4% to HKD 54,684.7 million from HKD 49,075.9 million year-on-year[57] - The total interest-bearing debt increased by 12.0% to HKD 50,511.5 million from HKD 45,104.1 million year-on-year[57] - The equity total decreased by 17.8% from HKD 6,256.2 million in 2022 to HKD 5,140.0 million in 2023[65] Fleet and Operations - The company operates a fleet of 192 aircraft, consisting of 165 owned and 27 managed aircraft[6] - There are currently 141 aircraft orders in the pipeline, indicating strong future growth potential[6] - The company serves 41 airline customers across 20 countries and regions, showcasing its global reach[6] - The company delivered a total of 21 new aircraft in 2023, including two Boeing 737 MAX aircraft, and increased its fleet size to 192 aircraft by the end of the year, up by 16 from the previous year[21] - The average age of the company's owned fleet was 8.5 years, with an average remaining lease term of 5.7 years as of December 31, 2023[21] - The company maintained a strong order book with a total of 141 aircraft orders, including 113 Airbus A320 NEO and 28 COMAC ARJ21 aircraft[21] Debt and Financing - The debt ratio stands at 81.9%, indicating a high level of leverage in the company's capital structure[9] - The debt ratio (interest-bearing debt to total assets) increased to 84.4% in 2023 from 81.5% in 2022, indicating a higher leverage[11] - The company secured over HKD 24 billion in new financing, including a sustainable development-linked aircraft prepayment loan, marking a first in the global aviation leasing industry[23] - The average actual interest rate on bank borrowings was 6.12% in 2023, compared to 4.20% in 2022[36] Sustainability and Future Strategies - The company is committed to sustainable development and green aviation, positioning itself as a leader in the industry[4] - Future strategies include expanding into new markets and enhancing aircraft asset management services[4] - The group is actively promoting green financing and has issued the first low-carbon transition bond in the Chinese aviation leasing industry[16] - The company is committed to supporting the development of domestic aircraft and enhancing overseas aviation material support capabilities[17] Shareholder and Dividend Information - The board proposed a final dividend of HKD 0.15 per share, maintaining the total dividend for 2023 at HKD 0.30 per share, consistent with 2022[14] - The group maintains a dividend policy aligned with its financial strategy, ensuring sufficient cash reserves to meet operational needs[72] - The board will review the dividend policy periodically, considering various factors impacting the group[72] Corporate Governance - The company has established a governance report for the year ending December 31, 2023, detailing its corporate governance practices[133] - The company has adhered to all provisions of the Corporate Governance Code as of December 31, 2023[134] - The board composition includes 25% female and 75% male directors, with 38% being independent non-executive directors[137] - The company emphasizes compliance with applicable laws and regulations across its jurisdictions[135] Risk Management - The company has established a risk management and internal control system to monitor and manage risks effectively[175] - The risk management framework includes a "three lines of defense" model to identify and manage risks effectively[193] - The company has conducted a climate risk assessment since 2019 to understand potential risks from climate change on its operations[181] - The company closely monitors foreign exchange risks and employs currency swaps and forwards to hedge against currency exchange risks[198] Employee and Diversity Initiatives - Employee count rose to 185 as of December 31, 2023, compared to 169 in 2022, with total employee compensation for 2023 amounting to HKD 171.2 million[66] - The company aims to maintain a diverse board with at least 25% female representation, despite the upcoming retirement of a female director in 2024[159] - The company has implemented an Equal Opportunity and Anti-Discrimination Policy to promote a fair and inclusive work environment[158] Board Changes and Appointments - The board has undergone changes, with new appointments and resignations noted, including the resignation of independent non-executive director Fan Renhe[81] - The company has appointed a new company secretary, effective May 1, 2023, who is a Chartered Financial Analyst and a registered accountant in Singapore[182] - The board has established formal procedures for the appointment, re-election, and retirement of directors, ensuring transparency[145]

Investment Rating - The report maintains a "Buy" rating for China Aircraft Leasing (1848.HK) with a target price of HKD 4.3 [2][5] Core Views - The company's revenue for 2023 met expectations, achieving HKD 4.76 billion, a year-on-year increase of 14.2%, driven by an increase in the number of aircraft leased from 97 to 113 [1][2] - The net profit attributable to shareholders for 2023 was HKD 28 million, significantly lower than the expected HKD 440 million, primarily due to higher interest expenses and a provision for impairment on shareholder loans [2] - The aircraft market is expected to experience a supply-demand imbalance, leading to an increase in aircraft values and rental yields, with the company holding a significant number of popular narrow-body aircraft [2][5] Financial Projections - Revenue projections for 2024-2026 are adjusted to HKD 5.15 billion, HKD 5.33 billion, and HKD 5.47 billion respectively, with net profit attributable to shareholders forecasted at HKD 230 million, HKD 500 million, and HKD 800 million [2][5] - The company's price-to-book (P/B) ratios for 2024-2026 are projected to be 0.57, 0.52, and 0.47 respectively [2][5] Market Position - The company has a total of 113 Airbus orders, with nearly half already leased out, indicating a strong market position and demand for its aircraft [2][5] - The report highlights that over 90% of the company's aircraft are popular narrow-body models, which are expected to see continued demand in the market [2][5]

2024年3月24日 公司研究 美元加息侵蚀盈利，赎回永续债影响后置 ——中国飞机租赁（1848.HK）2023 全年业绩点评 要点 增持（维持） ◆事件：公司发布2023年业绩。公司23年实现收入47.6亿港元，同比增长 当 前价：3.31港元 14.2%；实现净利润2.2亿港元，同比增长2.1%；实现归母净利润0.28亿港元， 同比下降61.6%，主要原因是永续债成本大幅增加。剔除计提CAG减值影响， 作者 公司23年净利润约3.8亿港元，同比增长111%；归母净利润约1.8亿港元， 分析师：程新星 同比增长410%。公司拟派发23年末期股息1.1亿港元（每股0.15港元），加 执业证书编号：S0930518120002 上23年中期股息，公司23年全年共派发股息2.2亿港元（每股0.3港元），实 021-52523841 际现金分红率(调整后)约121%，与上年同期分红金额（每股0.3港元）持平。 chengxx@ebscn.com ◆航空需求复苏持续恢复，公司自有机队规模继续增长。公司2023年底自有机 联系人：卢浩敏 队规模为165架（同比增加15架），其中融资租赁合约飞机48架（同比减少 021- ...

Financial Performance - Total revenue for the year ended December 31, 2023, was HKD 4,763.7 million, representing a strong growth of 14.2% compared to HKD 4,171.0 million in 2022[2] - Profit attributable to shareholders for the year was HKD 28.3 million, a decrease of 61.5% from HKD 73.6 million in 2022[2] - EBITDA for the year increased by 25.4% to HKD 4,377.0 million, up from HKD 3,490.6 million in 2022[2] - Adjusted profit attributable to shareholders surged by 410.8% to HKD 184.9 million, compared to HKD 36.2 million in 2022[2] - The operating profit for 2023 was HKD 693.7 million, a decrease of HKD 81.5 million or 10.5% from HKD 775.2 million in 2022[25] - The total revenue for 2023 was HKD 4,763.7 million, an increase of HKD 778.1 million or 18.7% compared to HKD 4,171.0 million in 2022[25] - The total lease income from finance and operating leases for 2023 was HKD 4,199.2 million, an increase of HKD 657.0 million or 18.5% compared to HKD 3,542.2 million in 2022[27] - The net income from aircraft sales and parts trading for 2023 was HKD 124.5 million, compared to HKD 207.1 million in 2022[28] - The company recorded a comprehensive income of HKD 77,953 thousand for the year, down from HKD 536,691 thousand in 2022, a decrease of 85.51%[67] Cash and Liquidity - Cash and cash equivalents as of December 31, 2023, were HKD 5,295.9 million, reflecting a significant increase of 49.1% from HKD 3,552.5 million in 2022[2] - The group secured over HKD 24 billion in new financing, including aircraft project loans and RMB bonds, enhancing liquidity for business development, with cash and bank balances amounting to HKD 5,840.4 million as of December 31, 2023[17] - The cash flow from operating activities for the year ended December 31, 2023, was HKD 3,685,874,000, an increase from HKD 3,348,587,000 in 2022[70] - The net cash flow used in investing activities was HKD (3,965,451,000), compared to HKD (6,529,265,000) in the previous year[71] - Cash flow from financing activities generated HKD 2,105,369,000, slightly up from HKD 2,008,278,000 in 2022[71] Fleet and Operations - The company maintained a fleet size of 192 aircraft by the end of 2023, an increase of 16 aircraft from the previous year, including 165 owned and 27 managed aircraft[13] - The company delivered 21 new aircraft in 2023, including two Boeing 737 MAX aircraft, and maintained a strong order book with 141 aircraft orders, comprising 113 Airbus A320 NEO and 28 ARJ21 aircraft[14] - The average age of the company's owned fleet was 8.5 years, with an average remaining lease term of 5.7 years as of December 31, 2023[14] - The company achieved a rental income recovery rate of 101.4% for the year, reflecting improved operational performance among most airline customers[15] - The company delivered its first new Boeing 737 MAX aircraft from its order book during the review year, marking a significant milestone in its partnership[6] Debt and Financing - The total liabilities as of December 31, 2023, were HKD 54,684.7 million, an increase of HKD 5,608.8 million or 11.4% from HKD 49,075.9 million in 2022[25] - Total interest-bearing debt rose by 12.0% from HKD 45,104.1 million in 2022 to HKD 50,511.5 million in 2023[53] - The average effective interest rate for bank and other borrowings increased to 6.12% in 2023 from 4.20% in 2022[32] - The group has issued RMB 1.5 billion and RMB 0.5 billion three-year corporate bonds in China in June and November 2023, respectively[76] - The total amount of bonds and financing notes increased from HKD 5,406.5 million as of December 31, 2022, to HKD 5,943.5 million as of December 31, 2023, primarily due to the issuance of two three-year RMB bonds totaling HKD 2,204.0 million[55] Market and Strategic Initiatives - The company is actively promoting green financing and has issued the first low-carbon transition bond in the Chinese aviation and aircraft leasing industry[8] - The company aims to enhance its global footprint and sustainable development through strategic partnerships and asset management[5] - The group has expanded its customer base to 41 airlines across 20 countries and regions, with all aircraft scheduled for delivery in the next 21 months already under lease agreements, over half of which will be leased to overseas airline customers[16] - Global air passenger demand increased by 36.9% in 2023, reaching 94.1% of 2019 levels, with domestic routes in China surpassing pre-pandemic levels[12] - The aircraft supply chain faces challenges, particularly a shortage of narrow-body aircraft, which is expected to persist until at least 2027, driving demand for aircraft leasing[20] Governance and Compliance - The company has adhered to all applicable provisions of the Corporate Governance Code as of December 31, 2023[111] - The consolidated financial statements for the year ended December 31, 2023, were audited by PwC in accordance with Hong Kong Financial Reporting Standards[114] - The audit committee, consisting of independent non-executive directors, reviewed the group's accounting principles and discussed matters related to auditing, internal controls, and financial reporting[113] - The 2023 ESG report marks the company's 10th report on its ESG performance, available on its website and the Hong Kong Stock Exchange[111] Employee and Operational Metrics - The total number of employees increased from 169 in 2022 to 185 in 2023, with total employee compensation amounting to HKD 171.2 million in 2023[61] - The company maintained a prudent approach to credit loss provisioning, resulting in an increase in expected credit loss provisions[51] - The aging analysis of operating lease receivables shows that 65% are overdue by more than 90 days, compared to 44% in 2022, indicating a significant increase in overdue amounts[87]