Financial Performance - Operating revenue for Q1 2022 was RMB 21,471 million, an increase of 1.03% compared to the same period last year[4] - Net profit attributable to shareholders was a loss of RMB 4,496 million, representing a decrease of 12.23% year-on-year[4] - The net profit attributable to shareholders after deducting non-recurring gains and losses was a loss of RMB 4,575 million, a decline of 18.89% compared to the previous year[4] - The basic and diluted earnings per share were both RMB -0.27, reflecting a decrease of 3.85% year-on-year[4] - Net profit for Q1 2022 was a loss of RMB 4,539 million, compared to a loss of RMB 4,114 million in Q1 2021[18] - The company reported a total comprehensive loss of RMB 4,539 million in Q1 2022, compared to a loss of RMB 4,102 million in Q1 2021[20] Assets and Liabilities - Total assets at the end of the reporting period were RMB 319,820 million, down 0.97% from the end of the previous year[4] - Total assets as of March 31, 2022, were RMB 319,820 million, a decrease from RMB 322,948 million as of December 31, 2021[16] - Total liabilities increased from RMB 238,703 million as of December 31, 2021, to RMB 240,114 million as of March 31, 2022, indicating a growth of about 0.6%[15] - Shareholders' equity attributable to shareholders was RMB 63,120 million, a decrease of 6.65% compared to the previous year[4] - Shareholders' equity attributable to the parent company decreased to RMB 63,120 million from RMB 67,616 million[16] Cash Flow - The net cash flow from operating activities was RMB 17 million, with no applicable year-on-year comparison[4] - Cash inflow from operating activities in Q1 2022 was RMB 23,889 million, an increase from RMB 22,500 million in Q1 2021[21] - Net cash outflow from operating activities for Q1 2022 was 23,872 million, compared to 22,551 million in Q1 2021, reflecting an increase of 5.8%[22] - Net cash flow from investing activities for Q1 2022 was -2,834 million, an improvement from -3,552 million in Q1 2021, indicating a reduction in cash outflow by 20.3%[22] - Cash inflow from financing activities in Q1 2022 totaled 28,910 million, down 38.5% from 47,060 million in Q1 2021[23] - The net increase in cash and cash equivalents for Q1 2022 was -1,736 million, worsening from -400 million in Q1 2021[23] - The ending balance of cash and cash equivalents for Q1 2022 was 19,720 million, down from 25,019 million in Q1 2021, representing a decline of 21.1%[23] Operational Metrics - The company had a weighted average return on equity of -5.54%, an increase of 0.41 percentage points year-on-year[4] - Total current assets decreased from RMB 37,866 million as of December 31, 2021, to RMB 35,427 million as of March 31, 2022, a decline of approximately 6.4%[13] - Total non-current assets slightly decreased from RMB 285,082 million as of December 31, 2021, to RMB 284,393 million as of March 31, 2022[14] - Accounts receivable increased from RMB 2,894 million as of December 31, 2021, to RMB 3,116 million as of March 31, 2022, reflecting an increase of about 7.7%[12] Employee and Tax Expenses - Cash paid to employees in Q1 2022 was 7,398 million, an increase of 6.7% from 6,934 million in Q1 2021[22] - Cash paid for taxes in Q1 2022 was 1,257 million, up 50.6% from 834 million in Q1 2021[22] Guarantees and Compliance - The company has provided guarantees totaling $53.79 billion for 43 SPV companies as of the reporting period end[11] - The company continues to manage its SPV guarantees within the authorized limits set by the shareholders' meeting, ensuring compliance and risk management[11]

Fleet and Operations - The fleet size of the group is 878 aircraft, making it the largest in Asia and among the top in the world[10] - The company has established two major international hubs in Guangzhou and Beijing, gradually forming a network airline model[10] - The company operates a network of 18 subsidiaries and 53 overseas offices, including major cities like Sydney and New York[9] - The company has launched six fast routes, enhancing connectivity in the Greater Bay Area[10] - The company aims to strengthen the integration of the Greater Bay Area, consolidating its market control[10] - The fleet size at the end of 2021 was 878 aircraft, with plans to increase to 937 by the end of 2022[30] - The average fleet age was 8.0 years, with an overall load factor of 71.25% for passenger aircraft[95] - The company introduced 22 new aircraft during the reporting period, including 2 B787 series and 10 A320 series[96] Financial Performance - Operating revenue for 2021 was CNY 101,644 million, an increase of 9.81% from CNY 92,561 million in 2020[18] - Net loss attributable to equity holders for 2021 was CNY (12,106) million, compared to CNY (10,847) million in 2020, representing an increase in loss of 11.61%[18] - Passenger revenue in 2021 was RMB 75,392 million, up 6.89% from RMB 70,534 million in 2020, with domestic passenger revenue increasing by 18.80% to RMB 68,656 million[73] - Cargo and mail revenue rose by 20.58% to RMB 19,887 million in 2021, compared to RMB 16,493 million in 2020[73] - The company's operating expenses increased by RMB 7,229 million or 6.63% to RMB 116,340 million in 2021 from RMB 109,111 million in 2020[72] - The operating loss for 2021 was RMB 9,929 million, compared to an operating loss of RMB 11,864 million in 2020[78] - The total assets as of December 31, 2021, were CNY 323,211 million, a decrease of 0.97% from CNY 326,383 million in 2020[18] - The total liabilities decreased by 1.06% to RMB 238,703 million as of December 31, 2021, compared to RMB 241,252 million in 2020[85] Market Share and Strategy - The market share at Beijing Daxing International Airport reached 45.9% in 2021, with a focus on high-quality development of the Beijing hub[10] - The domestic starting capacity share in the Guangdong-Hong Kong-Macao Greater Bay Area reached 38%[10] - The company is actively promoting the Hainan Free Trade Port strategy to enhance market share in key cities in Hainan[10] - The company has established a hub network strategy centered around Guangzhou and Beijing, with nearly 50% market share in Guangzhou[70] - The company emphasizes high-quality development, focusing on six major transformations, including a shift from speed to quality and from traditional business models to digitalization[67] - The company is actively expanding its hub network, focusing on the development of the Guangzhou and Beijing international hubs, and enhancing flight coverage in the Greater Bay Area[50] Safety and Efficiency - The company has received the highest award for flight safety in Chinese civil aviation, the "Diamond Two-Star Award" for flight safety[10] - The company maintained a safety record of 2.11 million flight hours during the reporting period[44] - The company is focused on the development of new products and technologies to enhance operational efficiency[10] - The company has implemented a green flight initiative, reducing in-flight meal waste by over 2,000 tons through on-demand meal services[57] - The company achieved a flight punctuality rate that ranked first in the industry for six consecutive years[71] Cargo Operations - Cargo traffic (RTK) for international routes increased by 8.77% to 6,434.18 million kilometers in 2021 from 5,915.47 million kilometers in 2020[20] - The company achieved a record high in cargo operations, with a total cargo volume of 732,000 tons, up 8.2% year-on-year[44] - The company reported a strong demand for air cargo, with cargo revenue expected to reach USD 175 billion globally[59] - The average revenue per ton kilometer for cargo increased by 13.66% to RMB 2.58, with international routes showing a 14.57% increase[25] Challenges and Risks - The company faces risks from macroeconomic fluctuations, which directly impact air passenger and cargo demand[118] - The company acknowledges the competitive risks from other transportation modes, particularly the growing high-speed rail network[118] - The global airline industry is projected to continue facing losses in 2022, with the International Air Transport Association estimating a net loss of USD 51.8 billion for the global airline industry in 2021[107] Future Plans - The company plans to enhance domestic market capacity and improve international route profitability in 2022, with new domestic routes planned[98] - The company plans to introduce new aircraft models, including 67 new passenger aircraft by the end of 2022[30] - The company plans to increase domestic capacity, optimize international layout, and enhance market control to improve operational efficiency and profitability[116] - The company will focus on cargo market opportunities, increasing cargo aircraft utilization, and expanding the scale of passenger-to-freight flights[116] Shareholder and Financial Management - The company has a plan to supplement working capital with the funds raised from the H-share issuance[175] - The company plans to issue up to 803,571,428 new A-shares to China Southern Airlines Group, raising a maximum of RMB 4,500 million for working capital[181] - The company issued RMB 16 billion in convertible bonds, with an initial conversion price of RMB 6.24 per share[178] - The company has secured a credit line of approximately RMB 295,683 million from domestic banks, with RMB 204,051 million remaining unused as of December 31, 2021[94] Corporate Governance - The independent non-executive directors confirmed that all related party transactions were conducted under normal commercial terms and in the best interest of shareholders[185] - The company has complied with all relevant laws and regulations affecting its operations, ensuring safety and compliance in applying for new flight slots[147] - There were no significant contracts signed with controlling shareholders or their subsidiaries during the fiscal year[149]

Financial Performance - China Southern Airlines reported a net profit of CNY 1.5 billion for the fiscal year 2021, marking a significant recovery from the previous year's loss of CNY 7.1 billion[3]. - The total revenue for the year reached CNY 36.2 billion, an increase of 25% compared to 2020[3]. - The company's operating revenue for 2021 was RMB 101,644 million, an increase of 9.81% compared to RMB 92,561 million in 2020[20]. - The net loss attributable to shareholders for 2021 was RMB 12,103 million, representing an increase of 11.63% from a net loss of RMB 10,842 million in 2020[20]. - The net cash flow from operating activities for 2021 was RMB 13,371 million, a significant increase of 47.76% compared to RMB 9,049 million in 2020[20]. - The company's total assets at the end of 2021 were RMB 322,948 million, a decrease of 0.97% from RMB 326,115 million at the end of 2020[20]. - The total operating revenue for the reporting period was RMB 101,644 million, an increase of RMB 9,083 million or 9.81% year-on-year[63]. - Passenger transportation revenue reached RMB 75,392 million, accounting for 76.52% of total revenue, with a year-on-year increase of RMB 4,858 million or 6.89%[63]. - Cargo and mail transportation revenue was RMB 19,887 million, representing 20.18% of total revenue, up RMB 3,394 million or 20.58% year-on-year[63]. - The total operating cost was RMB 104,229 million, an increase of RMB 9,326 million or 9.83% year-on-year, with fuel costs rising by 35.69% to RMB 25,505 million[64]. Operational Metrics - Passenger traffic increased by 30% year-over-year, with a total of 100 million passengers carried during the year[3]. - The airline's capacity, measured in available seat kilometers (ASK), grew by 28% to 120 billion kilometers[3]. - The load factor improved to 80%, up from 75% in the previous year, indicating better utilization of available capacity[3]. - The company reported a significant increase in investment cash flow, which rose by 95.37% to RMB 15,149 million, compared to RMB 7,754 million in the previous year[72]. - The fleet size at the end of 2021 was 878 aircraft, with 22 deliveries and 11 retirements during the reporting period[44]. - The company plans to deliver 68 aircraft in 2022 and 73 in 2023, with a total fleet forecast of 1,003 by the end of 2023[45]. - The average daily utilization rate of the fleet was 6.96 hours, with a passenger load factor of 71.25%[75]. - The company transported over 130 million doses of COVID-19 vaccines domestically and internationally during the reporting period[31]. Strategic Initiatives - China Southern Airlines plans to expand its fleet by adding 30 new aircraft in the next two years to support growth[3]. - The company is focusing on enhancing its digital services and customer experience through new technology initiatives[3]. - The company aims to transition from speed-focused growth to quality-focused growth, emphasizing strategic market breakthroughs and digital transformation[56]. - The company is committed to enhancing its hub network strategy, with a focus on creating a dual-driven development model between Guangzhou and Beijing[59]. - The company is implementing a long-term cost control mechanism to support high-quality development, including projects for budget management and digital finance[99]. Market Outlook - Future guidance indicates an expected revenue growth of 15% for the upcoming fiscal year, driven by increased travel demand[3]. - The company is focused on maximizing marginal contributions in the domestic market while enhancing the quality of international route revenues[78]. - The company is actively expanding its hub network, focusing on the construction of comprehensive international hubs in Guangzhou and Beijing[35]. - The company aims to enhance operational efficiency and service quality, focusing on digital transformation in operations and fuel management to reduce fuel consumption per available ton-kilometer[101]. Risk Management - There are no significant risks reported regarding non-operational fund occupation by controlling shareholders during the reporting period[4]. - The company is committed to safety and risk management, implementing a dual prevention mechanism for safety risk control and hazard identification[98]. - The company is addressing macroeconomic risks that could impact air transport demand, including economic fluctuations and government policy changes[103][104]. Governance and Compliance - The company held 3 shareholder meetings during the reporting period, ensuring legal compliance and fair participation for all shareholders, especially minority investors[118]. - The board of directors consists of 6 members, with independent directors making up over 50% of the board, and the board convened 14 meetings in 2021[119]. - The company has established a "large information disclosure team" to enhance compliance management and improve the systematic and proactive nature of its disclosure practices[128]. - The company has not faced significant differences in governance compared to regulatory requirements, ensuring compliance with laws and regulations[129]. Environmental Initiatives - The company has implemented a carbon peak and carbon neutrality action plan, outlining its timeline and roadmap for achieving these goals[191]. - The company has constructed a wastewater treatment system that meets national discharge standards, with chemical oxygen demand measured at 16 mg/L[178]. - The company has achieved a significant reduction in carbon emissions through initiatives like single-engine taxiing and meal conservation programs[186]. - The company has initiated a comprehensive plan to address plastic pollution, including standards for replacing non-degradable plastic products[189].