Core Insights - In 2024, China Southern Airlines reported total revenue of 174.22 billion yuan, an increase of 8.94% year-on-year, while net loss narrowed to 1.696 billion yuan from a loss of 4.209 billion yuan in the previous year, representing a 59.71% reduction in losses [1] Passenger Transport Business - The passenger transport revenue reached 146.45 billion yuan, accounting for 86.96% of the company's main business income, with a year-on-year increase of 7.55% [2] - The total number of passengers transported was 165 million, a growth of 15.84% year-on-year, with domestic routes carrying 145 million passengers (up 10.34%) and international routes (excluding Hong Kong, Macau, and Taiwan) carrying 17.6494 million passengers, a significant increase of 94.09% [2] - The average passenger load factor improved to 84.38%, an increase of 6.28 percentage points year-on-year, although the revenue per passenger kilometer decreased by 12.73% to 0.48 yuan due to intensified market competition and declining domestic ticket prices [2] Cargo Business - The cargo business emerged as a crucial pillar for reducing losses, with air cargo demand globally increasing by 11.3% year-on-year, surpassing 2021 records [3] - Cargo and mail transportation revenue reached 18.695 billion yuan, a year-on-year increase of 22.39%, representing 11.10% of the company's main business income [3] - The cargo turnover volume was 9.415 billion ton-kilometers, up 15.85% year-on-year, with revenue per ton-kilometer increasing by 5.85% to 1.99 yuan [3][4] Future Plans - The company plans to enhance domestic market capacity by increasing flight frequency and routes, including new domestic routes such as Beijing-Xishuangbanna and Haikou-Yiwu, as well as international routes like Guangzhou-Madrid and Beijing-Xi'an-Doha [2] - In the cargo sector, the company aims to optimize its cargo network, strengthen partnerships with logistics companies, and advance digital transformation and cost control to improve operational efficiency and profitability [4]

Investment Rating - The investment rating for the company is "Buy" [7][8] Core Views - The company is expected to enter a profit cycle soon, with a projected revenue of RMB 174.22 billion in 2024, an increase of 8.9% year-on-year, and a narrowed net loss of RMB 1.696 billion, down 59.7% from a loss of RMB 4.209 billion in 2023 [1][4] - The airline industry is anticipated to see supply growth remain low, leading to improved supply-demand dynamics and enhanced revenue levels for airlines [1][4] Summary by Sections Revenue and Profitability - In 2024, the company achieved a passenger load factor of 84.4%, up 6.3 percentage points year-on-year, while unit revenue per passenger kilometer decreased by 12.7% to RMB 0.48 [2] - The company’s cargo revenue reached RMB 18.695 billion in 2024, a 22.4% increase, driven by high growth in cross-border e-commerce [2] Cost and Margin Analysis - The company improved its aircraft utilization rate to 9.62 hours, leading to a 4.5% reduction in unit costs, resulting in a gross profit margin increase of 0.7 percentage points to 8.4% [3] - The total operating cost for 2024 was RMB 159.571 billion, an increase of 8.1% year-on-year, while gross profit improved by 18.7% to RMB 14.653 billion [3] Profit Forecast and Valuation - The net profit forecast for 2025 has been raised by 6% to RMB 4.027 billion, with expected net profits of RMB 7.894 billion in 2026 and RMB 9.501 billion in 2027 [4][6] - The target price for the A-share is set at RMB 7.50 and for the H-share at HKD 5.10, reflecting an upward adjustment in valuation multiples [4][8]

Investment Rating - The report maintains an "Outperform" rating for the company [2] Core Insights - The company recorded a net loss of 1.696 billion yuan in 2024, a reduction of 59.71% year-on-year, aligning with expectations [6] - Total operating revenue for 2024 reached 174.224 billion yuan, reflecting an 8.94% year-on-year growth [6] - The company is gradually moving towards a profit phase, with projected net profits of 3.64 billion yuan in 2025 and 7.229 billion yuan in 2026 [6] Financial Data and Profit Forecast - Total operating revenue (in million yuan): - 2023: 159,929 - 2024: 174,224 - 2025E: 176,292 - 2026E: 186,869 - 2027E: 196,419 [8] - Net profit (in million yuan): - 2023: -4,209 - 2024: -1,696 - 2025E: 3,640 - 2026E: 7,229 - 2027E: 9,823 [8] - The company expects a gross margin improvement from 8.4% in 2024 to 12.8% by 2027 [6] Operational Data - The company’s capacity and volume continued to recover in 2024, with overall ASK (Available Seat Kilometers) increasing by 14.8% year-on-year [6] - Domestic RPK (Revenue Passenger Kilometers) recovered to 118.5% of the 2019 level, with a year-on-year increase of 11.3% [6] - The company plans to increase its fleet by 53, 55, and 59 aircraft in the years 2025 to 2027, respectively [6]

Financial Performance - In 2024, the company achieved operating revenue of RMB 174,224 million, an increase of 8.94% compared to RMB 159,929 million in 2023[20]. - The net loss attributable to shareholders was RMB (1,696) million, a significant improvement of 59.71% from RMB (4,209) million in the previous year[20]. - The cash flow from operating activities was RMB 31,445 million, a decrease of 21.65% from RMB 40,134 million in 2023[20]. - The total assets at the end of 2024 were RMB 329,738 million, reflecting a growth of 6.63% from RMB 309,226 million at the end of 2023[20]. - The basic loss per share improved to RMB (0.09) from RMB (0.23) in 2023, marking a 60.87% reduction in losses[21]. - The weighted average return on equity increased by 6.09 percentage points to (4.72)% compared to (10.81)% in 2023[21]. - The total operating revenue for the reporting period was RMB 174,224 million, an increase of RMB 14,295 million or 8.94% year-on-year[64]. - The total operating cost was RMB 159,571 million, an increase of RMB 11,989 million or 8.12% year-on-year, with fuel costs rising to RMB 54,989 million, up 5.65%[65]. - The net cash inflow from operating activities was RMB 31,445 million, a decrease of 21.65% compared to the previous year[81]. - The total liabilities increased to RMB 277,143 million, up 7.74% from the end of the previous year, with current liabilities accounting for 49.94% of total liabilities[67]. Operational Highlights - The company reported a total passenger transport volume of 1.65 billion people, contributing to a significant operational scale in the aviation sector[33]. - The company achieved a passenger transport volume increase of 15.8% and a cargo mail transport volume increase of 15.7% during the reporting period[35]. - The total revenue passenger kilometers (RPK) reached 305,965.93 million, up 23.90% from 246,947.23 million in the previous year[42]. - The total revenue ton kilometers (RTK) increased by 21.54% to 36,207.79 million from 29,791.11 million[42]. - The average passenger load factor improved to 84.38%, an increase of 6.28 percentage points compared to the previous year[43]. - The total number of flights increased by 5.50% to 1,135.10 thousand flights in 2024 from 1,075.95 thousand flights in 2023[44]. - The fleet size reached 917 aircraft, with 345 owned, 241 under finance lease, and 331 under operating lease[45]. Strategic Initiatives - The company aims to build a world-class airline by 2025, focusing on core air transport and collaborative development[55]. - The company is enhancing its hub network strategy, particularly in the Guangdong-Hong Kong-Macao Greater Bay Area[54]. - The company plans to accelerate the construction of the Beijing Daxing hub and implement digital transformation initiatives[56]. - The company is focusing on strengthening its hub network strategy centered around Guangzhou and Beijing, aiming to enhance its international hub capabilities[59]. - The company is advancing its digital transformation initiatives, with key performance indicators such as social media followers and app downloads ranking among the industry leaders[62]. - The company is committed to advancing digital transformation and strategic industry adjustments to enhance competitiveness and market responsiveness[120]. Governance and Compliance - The company guarantees the authenticity, accuracy, and completeness of the annual report, with no false records or major omissions[5]. - The audit report issued by KPMG Huazhen shows a standard unqualified opinion for the company[5]. - The company’s governance structure complies with relevant laws and regulations, ensuring a balanced decision-making process among its governing bodies[140]. - The company held 2 shareholder meetings and 2 category shareholder meetings during the reporting period, ensuring all shareholders, especially minority investors, could participate in decision-making through online voting[143]. - The board of directors consists of 6 members, including 3 executive directors and 3 independent directors, and held 8 board meetings during the reporting period[144]. - The company received an A-level rating for information disclosure from the Shanghai Stock Exchange for the 2023-2024 period, marking the 11th consecutive year of receiving this rating[153]. Risk Factors - The company faces macroeconomic risks that could impact demand for air passenger and cargo services, directly affecting business performance[125]. - The company is exposed to fuel price fluctuations, with a 10% increase in average fuel prices potentially raising operating costs by RMB 5,499 million[136]. - The company has a significant capital expenditure risk due to high fixed costs associated with aircraft operations, which could lead to financial difficulties if business conditions deteriorate[133]. - The company’s financial performance is sensitive to exchange rate fluctuations, with a 1% change in the USD/CNY exchange rate potentially impacting shareholder equity by RMB 289 million[134]. - The company is subject to regulatory risks related to macroeconomic policies, which could affect its operational performance and future business development[126]. Future Outlook - The company projects that by 2025, global air transport revenue will exceed $1 trillion, with a 4.4% year-on-year growth[111]. - In China, the aviation industry is expected to achieve a passenger transport volume of 780 million by 2025, driven by rising national income and increased public holidays[112]. - The company aims to establish a world-class aviation transport enterprise by 2025, focusing on core aviation operations and collaborative development[113]. - The company plans to deliver a total of 970 aircraft by the end of 2025, with 91 deliveries expected in that year, and a total of 1,084 aircraft by the end of 2027[122]. Employee and Management - The company reported a total of 102,597 employees, with 67,303 in the parent company and 35,294 in major subsidiaries[188]. - The company has established a market-oriented personnel selection and incentive mechanism to enhance employee motivation and performance linkage[189]. - The total pre-tax remuneration for all directors, supervisors, and senior management during the reporting period amounted to RMB 8.2459 million, including deferred compensation[172]. - The company has appointed new senior management members, including a new Chief Safety Officer and a new Chief Flight Officer, indicating a restructuring in leadership[159]. - The company is actively engaging in performance assessments to align management compensation with company performance metrics[159].

Core Points - China Southern Airlines reported a total operating revenue of 174.22 billion yuan for the year 2024, an increase of 8.94% year-on-year [1] - The loss attributable to equity holders narrowed to 1.769 billion yuan, a decrease of 57.27% compared to the previous year [1] - The basic loss per share was 0.1 yuan [1] Revenue Breakdown - The majority of the company's operating revenue comes from air transportation, accounting for 94.79% in 2024 [1] - In 2024, passenger revenue constituted 88.68% of total transportation revenue, while cargo and mail revenue made up 11.32% [1] - Total transportation revenue increased by 9.05% year-on-year to 165.145 billion yuan, driven by growth in both passenger and cargo revenues [1] Passenger Metrics - Passenger revenue rose from 136.17 billion yuan in 2023 to 146.45 billion yuan in 2024, marking a 7.55% increase [2] - Total passenger numbers increased by 15.84% to 165 million in 2024 [2] - Revenue passenger kilometers (RPK) grew by 23.90% from 246.947 billion RPK in 2023 to 305.966 billion RPK in 2024, primarily due to increased production capacity [2]

证券代码：600029 证券简称：南方航空 公告编号：临 2025-013 中国南方航空股份有限公司 第十届监事会第五次会议决议公告 本公司监事会及全体监事保证本公告内容不存在任何虚假 记载、误导性陈述或者重大遗漏，并对其内容的真实性、准确性 和完整性承担法律责任。 一、监事会会议召开情况 （二）关于提名张弢先生为公司第十届监事会股东代表监事 候选人的议案； 根据本公司控股股东中国南方航空集团有限公司的推荐，监 事会同意提名张弢先生为本公司第十届监事会股东代表监事候 选人（简历附后）。监事会同意将此议案提交本公司股东会审议。 表决情况：同意 3 票、反对 0 票、弃权 0 票。表决结果：通 过。 （三）关于公司 2024 年度报告全文、摘要及业绩公告的议 案； 2025 年 3 月 26 日，中国南方航空股份有限公司（以下简称 "本公司""公司"）第十届监事会第五次会议在广州市白云区 齐心路 68 号中国南方航空大厦 34 楼 33A12 会议室以现场会议方 式召开。应出席会议监事 3 人，实际出席会议监事 3 人，任积东 监事因公未亲自出席本次会议，授权魏振兴监事代为出席会议并 表决。本次会议由魏振兴监事主 ...

证券代码：600029 证券简称：南方航空 公告编号：临2025-012 本公司董事会及全体董事保证本公告内容不存在任何虚假 记载、误导性陈述或者重大遗漏，并对其内容的真实性、准确性 和完整性承担法律责任。 一、董事会会议召开情况 2025 年 3 月 26 日，中国南方航空股份有限公司（以下简称 "本公司""公司"）第十届董事会第六次会议在广州市白云区 齐心路 68 号中国南方航空大厦 33 楼 3301 会议室以现场会议结 合视频会议的方式召开。本次会议应出席会议董事 5 人，实际出 席会议董事 5 人，张俊生董事因公未亲自出席本次会议，授权郭 为董事代为出席会议并表决。本次会议由董事长马须伦先生主持， 公司部分监事及部分高级管理人员列席。本次会议的通知和资料 已以书面方式发出。会议的召开及表决等程序符合《中华人民共 和国公司法》以及本公司章程的有关规定。 中国南方航空股份有限公司 第十届董事会第六次会议决议公告 二、董事会会议审议情况 经出席本次董事会的董事审议并表决，一致通过以下议案： 1 （一）关于公司 2024 年度董事会工作报告的议案； 表决情况：同意 5 票、反对 0 票、弃权 0 票，表决结 ...

Meeting Overview - The 5th meeting of the 10th Supervisory Board of China Southern Airlines was held in Guangzhou, with all 3 attending supervisors present [1] - The meeting was conducted in accordance with relevant laws and regulations [1] Resolutions Passed - The Supervisory Board unanimously approved the 2024 work report, which will be submitted to the annual shareholders' meeting for review [2] - Zhang Zhao was nominated as a candidate for the shareholder representative supervisor, with the proposal also submitted for shareholder meeting review [2] - The full text, summary, and performance announcement of the 2024 annual report were reviewed and approved, confirming compliance with legal and regulatory requirements [2] - The audited consolidated financial report for 2024 was approved [4] - The profit distribution plan for 2024 was approved [3] - The proposal regarding unmade losses reaching one-third of the total share capital was approved [4] - The financial derivatives business plan for 2025 was approved [4] - The report on the use of raised funds for 2024 was approved [4] - A risk assessment report for China Southern Airlines Group Financial Co., Ltd. was approved [4] - The internal control evaluation report for 2024 was approved [4] - The social responsibility and ESG report for 2024 was approved [4] - The shareholder dividend return plan for 2025-2027 was approved [5] Candidate Profile - Zhang Zhao, born in February 1973, holds a master's degree in management and has extensive experience in the aviation industry, including roles in Guizhou Airport Group and China Southern Airlines [5]

中国南方航空股份有限公司 内部控制审计报告 毕马威华振会计师事务所 (特殊普通合伙) 中国北京 东长安街 1 号 东方广场毕马威大楼 8 层 邮政编码:100738 电话 +86 (10) 8508 5000 传真 +86 (10) 8518 5111 网址 kpmg.com/cn 内部控制审计报告 按照《企业内部控制审计指引》及中国注册会计师执业准则的相关要求，我们审计了中 国南方航空股份有限公司（以下简称"南方航空"）2024 年 12 月 31 日的财务报告内部控制的 有效性。 一、 企业对内部控制的责任 按照《企业内部控制基本规范》、《企业内部控制应用指引》、《企业内部控制评价指 引》的规定，建立健全和有效实施内部控制，并评价其有效性是南方航空董事会的责任。 毕马威华振会计师事务所(特殊普通合伙) — 中国合伙制会计师事 务所，是与毕马威国际有限公司(英国私营担保有限公司)相关联的 独立成员所全球组织中的成员。 毕马威华振审字第 2507336 号 中国南方航空股份有限公司全体股东： 二、 注册会计师的责任 我们的责任是在实施审计工作的基础上，对财务报告内部控制的有效性发表审计意见， 并对注意到的非财 ...