Financial Performance - Operating revenue for Q1 2023 reached RMB 34,055 million, an increase of 58.61% compared to the same period last year[4] - Net profit attributable to shareholders was a loss of RMB 1,898 million, reflecting a recovery in the air passenger market[4] - Net profit attributable to shareholders after deducting non-recurring gains and losses was a loss of RMB 2,163 million[5] - Basic and diluted earnings per share were both -0.10 RMB, indicating a reduction in losses[5] - 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%[20] - The total comprehensive income attributable to the parent company for Q1 2023 was -1,898 million RMB, an improvement from -4,496 million RMB in Q1 2022[21] Cash Flow and Liquidity - Net cash flow from operating activities was RMB 8,808 million, a significant increase compared to the previous year[5] - The net cash flow from operating activities for Q1 2023 was 8,808 million RMB, compared to only 17 million RMB in Q1 2022, indicating a substantial improvement[24] - The company incurred a net cash outflow of 8,176 million RMB from financing activities in Q1 2023, a decline from a net inflow of 1,081 million RMB in the same period last year[25] - The cash inflow from investment activities was 987 million RMB in Q1 2023, an increase from 607 million RMB in Q1 2022[24] - The total cash inflow from operating activities was 38,946 million RMB in Q1 2023, compared to 23,889 million RMB in Q1 2022, indicating strong operational performance[24] Assets and Liabilities - Total assets at the end of the reporting period were RMB 308,760 million, a decrease of 1.04% from the end of the previous year[5] - The company's total assets decreased to RMB 308,760 million in Q1 2023 from RMB 312,001 million in Q4 2022, a decline of 1.0%[17] - Total liabilities for Q1 2023 were RMB 255,370 million, slightly down from RMB 256,887 million in Q4 2022, a decrease of 0.6%[16] Shareholder Information - Shareholder equity attributable to shareholders was RMB 39,159 million, down 4.62% from the previous year[5] - The total number of ordinary shareholders at the end of the reporting period was 139,577[9] - The largest shareholder, China Southern Airlines Group Co., Ltd., holds 51.90% of the shares[9] - The company has a significant foreign shareholder base, with 2,612,124,036 shares held by Nanlong Holdings Limited[10] - The company has a total of 2,648,836,036 shares held by related parties through various subsidiaries[10] Operational Costs and Expenses - Total operating costs for Q1 2023 were RMB 36,569 million, up from RMB 28,055 million in Q1 2022, indicating a rise of 30.4%[18] - Research and development expenses rose to RMB 114 million in Q1 2023, up from RMB 88 million in Q1 2022, reflecting a growth of 29.5%[18] - The cash outflow for purchasing goods and services was 20,631 million RMB in Q1 2023, compared to 15,009 million RMB in Q1 2022, reflecting increased operational costs[24] Guarantees and SPV Companies - The company has provided guarantees totaling USD 54.33 million for various SPV companies during the reporting period[13] - The company has issued guarantees for SPV companies, including USD 5.88 million for South Airlines No. 9 and USD 5.17 million for South Airlines No. 10[12] - The company has a total of 24 SPV companies that have received guarantees, with amounts ranging from USD 0.08 million to USD 5.88 million[13] Future Outlook - The company has not disclosed any significant new product developments or market expansions during the reporting period[11] - The company has not provided specific future performance guidance in the current report[11] - The company has not indicated any plans for mergers or acquisitions in the near term[11]

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 - The company's operating revenue for 2022 was RMB 87,059 million, a decrease of 14.35% compared to RMB 101,644 million in 2021[22]. - The net loss attributable to shareholders for 2022 was RMB (32,682) million, representing a significant increase of 170.03% from RMB (12,103) million in 2021[22]. - The net cash flow from operating activities for 2022 was RMB 3,465 million, down 74.09% from RMB 13,371 million in 2021[22]. - The basic loss per share for 2022 was RMB (1.90), an increase of 153.33% compared to RMB (0.75) in 2021[23]. - The total assets at the end of 2022 were RMB 312,001 million, a decrease of 3.39% from RMB 322,948 million at the end of 2021[22]. - The company reported a net loss of RMB (15,095) million in Q4 2022, with total revenue of RMB 16,898 million for the quarter[28]. - Non-recurring gains and losses for 2022 totaled RMB 1,346 million, compared to RMB 527 million in 2021[29]. - The weighted average return on equity for 2022 was (62.19)%, a decrease of 44.62 percentage points from (17.57)% in 2021[23]. - The company's total operating costs amounted to RMB 105,862 million, an increase of RMB 1,633 million or 1.57% year-on-year[64]. - The financial expenses surged by 129.57% to RMB 9,240 million, mainly due to an increase in exchange losses[68]. Operational Metrics - In 2022, the company achieved a passenger transportation volume of 62.64 million, with a year-on-year decrease of 36.41% compared to 2021[41]. - The total cargo and mail transportation volume reached 1.33 million tons, reflecting an 8.00% decrease from the previous year[41]. - The company reported a total revenue passenger kilometers (RPK) of 102,077.70 million, down 33.03% from 2021[41]. - The available seat kilometers (ASK) totaled 153,845.14 million, a decrease of 28.08% compared to the previous year[41]. - The passenger load factor (RPK/ASK) decreased by 4.90% to 66.35% from 71.25%[43]. - Revenue per available seat kilometer (RASK) increased by 20.41% to RMB 0.59 from RMB 0.49[43]. - Total flight kilometers decreased by 24.55% to 994.38 million from 1,317.85 million[45]. - Total flight hours decreased by 26.24% to 1,556.69 thousand hours from 2,110.36 thousand hours[45]. - The fleet size at the end of 2022 was 894 aircraft, with 23 deliveries and 7 retirements during the reporting period[46]. Risk Management - The company has detailed potential risks in the "Management Discussion and Analysis" section of the report[7]. - The company emphasizes the importance of risk awareness in its forward-looking statements, advising investors to consider potential risks[7]. - The company faces macroeconomic risks that could impact air passenger and cargo demand, affecting overall business performance[116]. - The company is exposed to risks from major pandemics and natural disasters, which could disrupt normal operations and adversely affect long-term development[119]. - The company acknowledges the risk of intensified industry competition and the need for effective marketing strategies to maintain revenue targets[120]. - The company highlights the significant impact of fuel price fluctuations, estimating that a 10% change in average fuel prices could affect operating costs by RMB 3,267 million[127]. - The company is vulnerable to exchange rate fluctuations, with a 1% change in the USD/RMB exchange rate potentially impacting shareholder equity by RMB 293 million[125]. - The company emphasizes the importance of flight safety, noting that various external factors could pose risks to operational safety and reputation[122]. - The company recognizes the need for robust information security management to mitigate risks that could affect operations and services[123]. Corporate Governance - The board of directors confirmed that all seven members attended the meeting to approve the annual report, ensuring full accountability[5]. - The company held 2 shareholder meetings during the reporting period, ensuring legal compliance and effective participation from all shareholders, particularly minority investors[131]. - The board of directors consists of 7 members, with independent directors making up over 50% of the board, and held 12 meetings in 2022[132]. - The audit and risk management committee is composed entirely of independent directors, ensuring rigorous oversight of financial reporting and risk management[135]. - The company’s governance structure aligns with the guidelines set by the China Securities Regulatory Commission, ensuring effective checks and balances[129]. - The company has not been subject to any penalties from securities regulatory authorities in the past three years[170]. - The company has established a comprehensive internal control management framework, ensuring clarity in responsibilities and organizational structure[193]. - The company has not disclosed any significant issues regarding its governance self-inspection actions[194]. - The company’s major shareholder, China Southern Airlines Group, does not interfere with the company’s decision-making processes[130]. Strategic Initiatives - The company plans to continue expanding its market presence and invest in new technologies to enhance operational efficiency[22]. - The company plans to increase domestic capacity and enhance international route profitability in 2023, with new routes including Guangzhou-Melbourne and Guangzhou-Vancouver[90]. - The company is actively pursuing new strategies to adapt to market changes, although detailed plans were not outlined[147]. - The company plans to implement a performance contract for senior management in 2022, which was approved during the compensation and assessment committee meetings[182]. - The company is exploring partnerships with tech firms to integrate advanced analytics into its operations, aiming for implementation by Q3 2024[149]. - The company is considering strategic acquisitions to enhance its market position, with a budget of 3 billion yuan for potential deals[158]. - The company aims to enhance safety and operational quality in 2023, focusing on risk management and digital safety ecosystems[107]. - The company plans to maintain strategic focus and ensure the implementation of high-quality development strategies, including enhancing the Beijing hub and optimizing domestic and international route networks[112]. Environmental Responsibility - The company invested 14,802,000 RMB in environmental protection during the reporting period[195]. - The company’s environmental management includes compliance with pollution discharge standards, with specific measures in place for wastewater and waste gas emissions[195]. - The company reported that all pollutant emissions during the reporting period complied with national emission standards, with no violations of environmental laws or regulations[199]. - The construction and operation of pollution control facilities were executed in strict accordance with the regulations of the ecological environment authorities, ensuring simultaneous operation with production facilities[200]. - Hazardous waste is collected and stored in designated hazardous waste storage areas, with regular transfers and disposal conducted by qualified entities[200]. - The company has not experienced any major environmental pollution incidents or significant ecological damage events during the reporting period[199].

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].

Report Overview [Important Notice](index=1&type=section&id=Important%20Notice) This unaudited Q3 2022 report for China Southern Airlines is guaranteed by its board, supervisory committee, and senior management for truthfulness, accuracy, and completeness - This quarter's financial statements are unaudited[3](index=3&type=chunk) - The company's Board of Directors, Supervisory Committee, and senior management guarantee the truthfulness, accuracy, and completeness of the report's content[3](index=3&type=chunk) - The company's principal Ma Xulun, chief accountant Yao Yong, and head of accounting Mao Juan have signed assurance statements[3](index=3&type=chunk) Key Financial Data [Key Accounting Data and Financial Indicators](index=1&type=section&id=Key%20Accounting%20Data%20and%20Financial%20Indicators) Q3 2022 saw a 9.01% revenue increase to **RMB 29.344 billion**, but net loss attributable to shareholders expanded by 326.21% to **RMB 6.099 billion** Key Financial Indicators for Q3 2022 and Year-to-Date | Item | Current Period (Million RMB) | YoY Change (%) | Year-to-Date (Million RMB) | Year-to-Date YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 29,344 | 9.01 | 70,161 | -10.62 | | Net Profit Attributable to Shareholders of Listed Company | -6,099 | 326.21 | -17,587 | 187.42 | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-recurring Items) | -6,571 | 298.24 | -18,322 | 184.06 | | Net Cash Flow from Operating Activities | N/A | N/A | 7,300 | -44.52 | | Basic Earnings Per Share (RMB/share) | -0.36 | 350.00 | -1.03 | 171.05 | | Diluted Earnings Per Share (RMB/share) | -0.36 | 350.00 | -1.03 | 171.05 | | Weighted Average Return on Net Assets (%) | -11.98 | Decrease by 10.05 percentage points | -34.94 | Decrease by 26.23 percentage points | | Total Assets (End of Current Period) | 309,794 | -4.07 (vs. end of previous year) | | | | Owners' Equity Attributable to Shareholders of Listed Company (End of Current Period) | 51,595 | -23.69 (vs. end of previous year) | | | [Non-recurring Gains and Losses and Amounts](index=2&type=section&id=Non-recurring%20Gains%20and%20Losses%20and%20Amounts) Total non-recurring gains and losses were **RMB 472 million** for the quarter and **RMB 735 million** year-to-date, primarily from asset disposal, government grants, and other non-operating items Non-recurring Gains and Losses for Q3 2022 and Year-to-Date | Item | Amount for Current Period (Million RMB) | Amount for Year-to-Date (Million RMB) | | :--- | :--- | :--- | | Gains/Losses from Disposal of Non-current Assets | 44 | 149 | | Government Grants Included in Current Profit/Loss | 80 | 119 | | Other Non-operating Income and Expenses Apart from the Above | 213 | 528 | | Other Gains/Losses Meeting the Definition of Non-recurring Items | 318 | 329 | | Less: Income Tax Impact | 163 | 278 | | Minority Interest Impact (After Tax) | 20 | 112 | | Total | 472 | 735 | [Changes and Reasons for Key Accounting Data and Financial Indicators](index=3&type=section&id=Changes%20and%20Reasons%20for%20Key%20Accounting%20Data%20and%20Financial%20Indicators) Net profit, non-recurring net profit, and EPS showed significant loss increases due to the pandemic, high oil prices, and RMB depreciation, with operating cash flow down **44.52%** year-to-date - **Net profit attributable to shareholders** of the listed company (for the current period and year-to-date) significantly increased its loss, with changes of **326.21%** and **187.42%** respectively[7](index=7&type=chunk) - **Net profit attributable to shareholders** of the listed company (excluding non-recurring items) (for the current period and year-to-date) significantly increased its loss, with changes of **298.24%** and **184.06%** respectively[7](index=7&type=chunk) - **Basic and diluted earnings per share** (for the current period and year-to-date) both showed significant increases in losses, with changes of **350.00%** and **171.05%** respectively[7](index=7&type=chunk) - The primary reasons for these increased losses are multiple adverse factors including the **pandemic, high oil prices, and RMB depreciation**[7](index=7&type=chunk) - **Net cash flow from operating activities** decreased by **44.52%** year-to-date, primarily due to reduced revenue impacted by adverse factors such as the pandemic[7](index=7&type=chunk) Shareholder Information [Total Number of Common Shareholders and Top Ten Shareholders' Holdings](index=4&type=section&id=Total%20Number%20of%20Common%20Shareholders%20and%20Top%20Ten%20Shareholders'%20Holdings) The company had **137,795 common shareholders** at period-end, with China Southern Air Holding Company Limited and Nan Lung Holding Limited as the largest shareholders, holding **49.67%** and **15.08%** respectively - The total number of common shareholders at the end of the reporting period was **137,795**[8](index=8&type=chunk) Top Ten Shareholders' Holdings | Shareholder Name | Shareholder Nature | Number of Shares Held (Shares) | Shareholding Ratio (%) | | :--- | :--- | :--- | :--- | | China Southern Air Holding Company Limited | State-owned Legal Entity | 8,600,897,508 | 49.67 | | Nan Lung Holding Limited | State-owned Legal Entity | 2,612,124,036 | 15.08 | | HKSCC Nominees Limited | Overseas Legal Entity | 1,750,886,837 | 10.11 | | Hong Kong Securities Clearing Company Limited | Overseas Legal Entity | 623,084,982 | 3.60 | | China National Aviation Fuel Group Limited | State-owned Legal Entity | 350,162,257 | 2.02 | | China Securities Finance Corporation Limited | State-owned Legal Entity | 320,484,148 | 1.85 | | American Airlines, Inc. | Overseas Legal Entity | 270,606,272 | 1.56 | | China Structural Reform Fund Corporation Limited | State-owned Legal Entity | 192,659,933 | 1.11 | | Spring Airlines Co., Ltd. | Domestic Non-state-owned Legal Entity | 140,531,561 | 0.81 | | Guoxin Central Enterprise Operation Investment Fund Management (Guangzhou) Co., Ltd. - Guoxin Central Enterprise Operation (Guangzhou) Investment Fund (Limited Partnership) | Domestic Non-state-owned Legal Entity | 70,006,275 | 0.40 | - China Southern Air Holding Company Limited holds shares in the company through its wholly-owned subsidiaries, Nan Lung Holding Limited and TravelSky (Hong Kong) Limited, indicating a related party relationship[9](index=9&type=chunk) Other Reminders [Other Important Information Regarding the Company's Operating Performance During the Reporting Period Requiring Investor Attention](index=5&type=section&id=Other%20Important%20Information%20Regarding%20the%20Company's%20Operating%20Performance%20During%20the%20Reporting%20Period%20Requiring%20Investor%20Attention) The company and its subsidiaries have provided **USD 5.372 billion** (approximately **RMB 38.140 billion**) in guarantees for **43 SPV companies**, all within shareholder-approved limits - The company and its controlled subsidiaries have provided actual guarantees for **43 SPV companies**[11](index=11&type=chunk) Total SPV Company Guarantee Amount | Item | Amount | | :--- | :--- | | Guaranteed Amount (Billion USD) | 5.372 | | Guaranteed Amount (RMB, at Sep 30, 2022 exchange rate) | 38.140 Billion RMB | - All guarantees are within the authorized guarantee limits approved by the company's general meeting of shareholders[11](index=11&type=chunk) Quarterly Financial Statements [Type of Audit Opinion](index=7&type=section&id=Type%20of%20Audit%20Opinion) This quarter's financial statements are unaudited - This quarter's financial statements are unaudited[13](index=13&type=chunk) [Consolidated Balance Sheet](index=7&type=section&id=Consolidated%20Balance%20Sheet) As of September 30, 2022, total assets were **RMB 309.794 billion** (down **4.07%**), total liabilities **RMB 243.706 billion**, and owners' equity attributable to the parent company **RMB 51.595 billion** (down **23.69%**) Consolidated Balance Sheet Key Data (As of September 30, 2022) | Item | Sep 30, 2022 (Million RMB) | Dec 31, 2021 (Million RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 309,794 | 322,948 | -4.07 | | Total Current Assets | 29,608 | 37,866 | -21.80 | | Total Non-current Assets | 280,186 | 285,082 | -1.72 | | Total Liabilities | 243,706 | 238,703 | 2.10 | | Total Current Liabilities | 120,345 | 110,990 | 8.43 | | Total Non-current Liabilities | 123,361 | 127,713 | -3.39 | | Total Owners' Equity Attributable to Parent Company | 51,595 | 67,616 | -23.69 | | Minority Interests | 14,493 | 16,629 | -12.85 | | Total Owners' Equity | 66,088 | 84,245 | -21.55 | - **Short-term borrowings** significantly increased from **RMB 25.116 billion** at the end of 2021 to **RMB 44.995 billion** as of September 30, 2022, an increase of approximately **79.19%**[15](index=15&type=chunk) - **Retained earnings** changed from **RMB 43 million** at the end of 2021 to **RMB -17.544 billion** as of September 30, 2022, reflecting the company's significant losses during the reporting period[16](index=16&type=chunk) [Consolidated Income Statement](index=9&type=section&id=Consolidated%20Income%20Statement) Q1-Q3 2022 total operating revenue was **RMB 70.161 billion** (down **10.62%**), with total operating costs at **RMB 94.601 billion**, leading to a net loss of **RMB 18.135 billion** Consolidated Income Statement Key Data (Q1-Q3 2022) | Item | Q1-Q3 2022 (Million RMB) | Q1-Q3 2021 (Million RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 70,161 | 78,495 | -10.62 | | Total Operating Costs | 94,601 | 88,437 | 6.97 | | Of which: Operating Costs | 80,216 | 77,748 | 3.17 | | Financial Expenses | 8,470 | 3,726 | 127.33 | | Total Profit (Total Loss) | -20,609 | -6,627 | 210.99 | | Net Profit (Net Loss) | -18,135 | -5,100 | 255.59 | | Net Profit (Net Loss) Attributable to Parent Company Shareholders | -17,587 | -6,119 | 187.42 | | Basic Earnings Per Share (RMB/share) | -1.03 | -0.38 | 171.05 | - **Financial expenses** significantly increased by **127.33%** year-on-year, a major contributing factor to the expanded loss[18](index=18&type=chunk) - **Minority interest income/loss** shifted from a profit of **RMB 1.019 billion** in Q1-Q3 2021 to a loss of **RMB 548 million** in Q1-Q3 2022[22](index=22&type=chunk) [Consolidated Cash Flow Statement](index=12&type=section&id=Consolidated%20Cash%20Flow%20Statement) Q1-Q3 2022 net cash flow from operating activities was **RMB 7.300 billion** (down **44.52%**), investing activities improved to **RMB -2.671 billion**, while financing activities saw increased outflow to **RMB -11.279 billion** Consolidated Cash Flow Statement Key Data (Q1-Q3 2022) | Item | Q1-Q3 2022 (Million RMB) | Q1-Q3 2021 (Million RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 7,300 | 13,158 | -44.52 | | Net Cash Flow from Investing Activities | -2,671 | -12,208 | 78.12 (Improvement) | | Net Cash Flow from Financing Activities | -11,279 | -4,386 | -157.16 (Increased outflow) | | Net Increase in Cash and Cash Equivalents | -6,570 | -3,440 | -91.00 (Increased outflow) | | Cash and Cash Equivalents at End of Period | 14,886 | 21,979 | -32.36 | - **Tax refunds received** significantly increased from **RMB 47 million** in Q1-Q3 2021 to **RMB 5.600 billion** in Q1-Q3 2022, contributing significantly to operating cash inflows[24](index=24&type=chunk) - **Cash paid for the acquisition of fixed assets, intangible assets, and other long-term assets** decreased from **RMB 13.762 billion** in Q1-Q3 2021 to **RMB 7.209 billion** in Q1-Q3 2022, indicating reduced investment expenditures[26](index=26&type=chunk)

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]

Financial Performance - The company reported a significant increase in passenger traffic, with a year-on-year growth of 25% in available seat kilometers (ASK) for the first half of 2022[8]. - Revenue from passenger transport reached approximately 50 billion RMB, marking a 30% increase year-on-year[8]. - Operating revenue for the first half of 2022 was RMB 40,817 million, a decrease of 20.86% compared to RMB 51,576 million in the same period of 2021[16]. - Net loss attributable to equity holders of the company was RMB (11,490) million, an increase of 144.99% from RMB (4,690) million in the first half of 2021[16]. - Net cash inflow from operating activities was RMB 1,654 million, down 66.52% from RMB 4,940 million in the same period of 2021[16]. - The company reported a net foreign exchange loss of RMB 2,052 million in the first half of 2022, compared to a net foreign exchange gain of RMB 793 million in the same period of 2021[64]. - Transportation revenue was RMB 37,875 million, down 22.00% year-on-year, primarily due to a decline in passenger revenue[55]. - Passenger revenue decreased to RMB 26,732 million, a drop of 32.65% year-on-year, attributed to repeated domestic COVID-19 outbreaks[56]. Operational Efficiency - The load factor improved to 80%, reflecting a 5% increase compared to the same period last year[8]. - The company is investing in new technology for operational efficiency, including a digital platform for customer engagement[8]. - Operating expenses decreased by 5.52% to RMB 53.35 billion from RMB 56.47 billion year-on-year[53]. - Operating expenses accounted for 130.70% of total operating revenue, an increase of 21.22 percentage points compared to the same period last year[59]. - Flight operation expenses were RMB 23,236 million, representing 43.55% of total operating expenses, influenced by rising fuel prices and reduced flight volumes[60]. - The company has established a lean cost control mechanism to enhance long-term cost management[33]. Future Outlook - Future guidance indicates an expected revenue growth of 20% for the next quarter, driven by increased travel demand[8]. - Future outlook remains cautious with ongoing market uncertainties and potential recovery strategies being evaluated[19]. - The company plans to expand its fleet by adding 20 new aircraft in the next fiscal year to enhance capacity[8]. Market Position and Strategy - The company is exploring strategic partnerships to enhance its market presence in Southeast Asia[8]. - The company aims to build a world-class aviation transport enterprise, focusing on quality and efficiency, and implementing a strategic framework of "32453" to achieve high-quality development[38]. - The company continues to focus on the development of its hub networks in Guangzhou and Beijing, aiming for a new development pattern of "North-South coordination, flying together"[40]. Environmental and Safety Initiatives - The company reported that all pollutant emissions during the reporting period complied with national emission standards, with no violations of environmental laws or regulations[108]. - The company implemented strict pollution control measures, ensuring that production-related waste gases were discharged according to permit standards[109]. - The company has established an environmental emergency management system to address sudden environmental incidents effectively[118]. - The company is committed to maintaining aviation safety throughout 2022, ensuring a high-quality safety management system[48]. Employee and Corporate Governance - The company had a total of 97,709 employees as of June 30, 2022, a slight decrease from 98,098 employees on December 31, 2021[98]. - The company’s board believes it has complied with the corporate governance code during the six months ending June 30, 2022[99]. - There were no changes in the shareholding of directors, supervisors, and senior management during the reporting period[97]. Debt and Financing - The company has established a comprehensive debt repayment plan to ensure timely servicing of its financial obligations[177]. - The company is actively managing its debt financing tools in the interbank bond market, with ongoing evaluations of its non-financial corporate debt financing instruments[179]. - The company plans to continue its bond issuance strategy to support operational liquidity and expansion efforts in the coming quarters[180]. Shareholder Information - The company’s major shareholder, China Southern Airlines Group, held 64.20% of the total issued shares after the conversion of bonds[140]. - The total number of A shares issued by the company is 12,673,318,167, with 9,404,468,936 A shares directly owned by China Southern Airlines Group, representing 74.21% of the total A shares issued[172]. - The total number of H shares issued is 4,275,144,849, with 3,135,012,546 H shares indirectly owned by China Southern Airlines Group through its controlled entity, accounting for 73.33% of the total H shares issued[173].

Financial Performance - The company reported a significant increase in passenger traffic, with a year-on-year growth of 25% in revenue passenger kilometers (RPK) for the first half of 2022[7]. - The overall load factor improved to 80%, up from 75% in the same period last year, indicating better capacity utilization[7]. - The total operating revenue for the first half of 2022 reached RMB 50 billion, representing a 30% increase compared to the previous year[7]. - The company reported a net profit of RMB 5 billion for the first half of 2022, a significant recovery from the losses experienced in the previous year[7]. - The company's operating revenue for the first half of 2022 was RMB 40,817 million, a decrease of 20.86% compared to RMB 51,576 million in the same period last year[12]. - The net loss attributable to shareholders for the first half of 2022 was RMB (11,488) million, representing an increase of 145.05% from RMB (4,688) million in the previous year[12]. - The basic loss per share for the first half of 2022 was RMB (0.68), an increase of 126.67% compared to RMB (0.30) in the same period last year[13]. - The net loss for the first half of 2022 was RMB 11,983 million, compared to a net loss of RMB 3,964 million in the same period of 2021[157]. Revenue and Cost Analysis - The cargo revenue increased by 15%, contributing RMB 10 billion to the total revenue, driven by strong demand for air freight services[7]. - Passenger revenue decreased by 32.65% to RMB 26,732 million, primarily due to a 43.47% decline in domestic passenger turnover caused by adverse effects of the domestic pandemic[36]. - Cargo and mail revenue increased by 25.68% to RMB 11,143 million, driven by rising international freight rates[36]. - Operating costs for the first half of 2022 were RMB 49,455 million, a decrease of 4.65% year-on-year, with fuel costs rising by 16.69% to RMB 14,395 million[42]. - The gross profit margin for the main business decreased by 23.35% year-on-year, indicating challenges in profitability[44]. Operational Capacity and Fleet Management - The company plans to expand its fleet by adding 20 new aircraft by the end of 2023, enhancing its operational capacity[7]. - The fleet size as of June 30, 2022, totaled 880 aircraft, with an average age of 8.4 years[20]. - The total available seat kilometers (ASK) decreased by 34.33% from 114,295.35 million to 75,058.50 million[18]. - The total available ton kilometers (ATK) decreased by 26.92% from 17,863.41 million to 13,054.10 million[18]. - The total flight hours increased by 30.92% from 1,127.65 thousand hours to 779.02 thousand hours[19]. Strategic Initiatives and Future Outlook - Future guidance indicates an expected revenue growth of 20% for the second half of 2022, supported by increased travel demand[7]. - The company is focusing on digital transformation initiatives, aiming to enhance customer experience and operational efficiency through new technologies[7]. - The company aims to focus on high-quality development and strategic transformation towards digitalization and market-oriented operations[23]. - The company has no plans for major acquisitions in the near term but is exploring strategic partnerships to enhance market presence[7]. Environmental and Sustainability Efforts - The management highlighted the importance of sustainability initiatives, with plans to reduce carbon emissions by 10% over the next five years[7]. - The company is committed to green development and has been recognized as a key pollutant discharge unit in Shenyang and Guangzhou[82]. - The company achieved a fuel consumption of 2.83 tons per 10,000 ton-kilometers during the reporting period, demonstrating effective fuel management[99]. - The company has implemented a comprehensive environmental monitoring plan, ensuring that all major pollutants are within compliance during the reporting period[88]. - The company actively participated in carbon trading mechanisms, successfully completing the EU carbon trading compliance for 2021 in April 2022[93]. Financial Position and Liabilities - The total assets at the end of the reporting period were RMB 321,152 million, a slight decrease of 0.56% from RMB 322,948 million at the end of the previous year[12]. - The company's total liabilities reached RMB 249,764 million, up from RMB 238,703 million in the previous period[149]. - The current ratio decreased to 29.85%, down 4.27 percentage points from the previous year[51]. - The debt-to-asset ratio was 77.77%, an increase of 3.86 percentage points from 73.91% on December 31, 2021[51]. - The net assets attributable to shareholders at the end of the reporting period were RMB 56,143 million, a decrease of 16.97% from RMB 67,616 million at the end of the previous year[12]. Employee and Corporate Governance - As of June 30, 2022, the company had a total of 97,709 employees, a decrease from 98,098 employees on December 31, 2021[81]. - The company did not propose any profit distribution or capital reserve conversion plans for the half-year period[81]. - The company appointed KPMG Huazhen as the auditor for its 2022 domestic financial report and internal control report, as well as for its 2022 Hong Kong financial report[107]. - The company has not experienced a significant impact on its financial position or operating results from the adoption of new accounting regulations[121]. Market and Economic Challenges - The company faces macroeconomic risks that directly impact air passenger and cargo demand, affecting overall business performance[61]. - The company anticipates continued losses in the global aviation industry, with an estimated net loss of $9.7 billion for 2022 due to high oil prices and pandemic impacts[74]. - The Chinese civil aviation industry faced significant challenges, with passenger transport volume at 36.7% of 2019 levels[24].

Financial Performance - The total operating revenue for the first quarter of 2022 was RMB 21,471 million, representing a year-on-year increase of 1.03%[2] - The net profit attributable to shareholders of the listed company was RMB -4,496 million, a decrease of 12.23% compared to the same period last year[3] - The basic and diluted earnings per share were both RMB -0.27, reflecting a decrease of 3.85% year-on-year[3] - Total operating costs for Q1 2022 increased to RMB 28,055 million from RMB 27,038 million in Q1 2021, reflecting a rise of 3.76%[15] - Net profit attributable to shareholders of the parent company for Q1 2022 was a loss of RMB 4,496 million, compared to a loss of RMB 4,006 million in Q1 2021, indicating a deterioration of 12.2%[17] - The company recorded other income of RMB 550 million in Q1 2022, down from RMB 627 million in Q1 2021, a decrease of 12.3%[17] - The financial expenses for Q1 2022 were RMB 1,166 million, a decrease from RMB 1,530 million in Q1 2021, representing a reduction of 23.8%[15] Cash Flow - The net cash flow from operating activities was RMB 17 million, which is not applicable for year-on-year comparison[5] - The company reported a net cash flow from operating activities of RMB 17 million in Q1 2022, a recovery from a negative cash flow of RMB 51 million in Q1 2021[21] - Cash inflow from financing activities totaled $28,910 million, a decrease of 38.5% compared to $47,060 million in the previous period[22] - Net cash flow from financing activities was $1,081 million, down from $3,202 million, indicating a decline of 66.3%[22] - Cash and cash equivalents at the end of the period were $19,720 million, compared to $25,019 million at the end of the previous period, reflecting a decrease of 21.1%[22] - The company reported a cash decrease of $1,736 million during the period, compared to a decrease of $400 million previously[22] Assets and Liabilities - The total assets at the end of the reporting period were RMB 319,820 million, a decrease of 0.97% from the end of the previous year[3] - The company's total liabilities amounted to RMB 240,114 million, slightly up from RMB 238,703 million in the previous year[13] - The company's non-current assets totaled RMB 284,393 million, a slight decrease from RMB 285,082 million year-over-year[12] - Short-term borrowings increased significantly to RMB 35,862 million from RMB 25,116 million year-over-year[12] - The company's current assets totaled RMB 35,427 million, a decrease from RMB 37,866 million at the end of the previous year[12] Shareholder Information - The company had a total of 142,786 common shareholders at the end of the reporting period[6] - The largest shareholder, China Southern Airlines Group, held 50.75% of the shares, totaling 8,600,897,508 shares[6] - The company reported a total equity of RMB 16,948 million, unchanged from the previous year[13] - The equity attributable to shareholders of the listed company was RMB 63,120 million, down 6.65% from the end of the previous year[3] Guarantees and Commitments - The total amount guaranteed by the company for SPV companies reached $53.79 million as of the report date[10] - The company has provided guarantees for 43 SPV companies, with the highest guarantee amounting to $5.88 million for SPV company 南航 9 号[10] - The company has a total of 43 SPV companies that have received guarantees, indicating a strong commitment to supporting its subsidiaries[10] Accounting and Reporting Changes - The company has adopted new accounting standards starting in 2022, which may affect future financial reporting[22]