Financial Performance - The net profit attributable to the parent company for 2021 was ¥463,289,691.71, while the undistributed profit as of December 31, 2021, was -¥17,129,012,836.79[4] - The parent company reported a net profit of -¥24,327,148.80 for the year, resulting in a distributable profit of ¥276,012,014.25 for shareholders[4] - The company plans not to distribute profits for 2021 to enhance its risk resistance capabilities and ensure long-term development[4] - The company's operating revenue for 2021 was approximately CNY 4.52 billion, a decrease of 28.40% compared to 2020[18] - The net profit attributable to shareholders for 2021 was approximately CNY 463.29 million, a significant turnaround from a loss of CNY 7.77 billion in 2020, representing a 105.97% increase[18] - The net cash flow from operating activities for 2021 was approximately CNY 422.54 million, down 36.67% from 2020[18] - The total assets at the end of 2021 were approximately CNY 61.17 billion, an increase of 5.37% compared to 2020[18] - The net assets attributable to shareholders at the end of 2021 were approximately CNY 19.31 billion, a substantial increase of 159.81% from 2020[18] - Basic earnings per share for 2021 were CNY 0.0405, a recovery from a loss of CNY 0.6796 in 2020, marking a 105.96% increase[19] - The weighted average return on equity for 2021 was 6.05%, a significant improvement from -38.05% in 2020[19] Operational Highlights - The company reported a quarterly revenue of CNY 1.34 billion in Q1 2021, with a gradual decline to CNY 853.63 million in Q4 2021[21] - The company received government subsidies amounting to approximately CNY 125.45 million in 2021, which are closely related to its normal business operations[22] - In 2021, the company managed 7 airports, including Sanya Phoenix Airport and Qionghai Boao Airport, while maintaining zero safety responsibility accidents throughout the year[26] - The company operates duty-free businesses across multiple locations, including a total operating area of 17,944 square meters at Haikou Meilan Airport[26] - The company operates 2 self-managed hotels and 2 managed hotels, with nearly 2000 rooms in operation or under development[27] - The aviation training segment served over 40 clients, totaling approximately 140,000 hours of simulator training[27] Market and Industry Trends - The total retail sales of duty-free shops in Hainan reached RMB 601.7 billion, a year-on-year increase of 84%[28] - The number of duty-free shopping travelers in Hainan increased by 102% to 6.28 million[28] - Nationally, real estate development investment reached RMB 14,760.2 billion, a year-on-year increase of 4.4%[29] - Hainan's real estate sales area grew by 18.3% to 8.89 million square meters, with sales revenue increasing by 26.6% to RMB 155.9 billion[29] - The tourism industry in Hainan received 81.0 million domestic and international visitors, a year-on-year increase of 25.5%[29] - The total tourism revenue in Hainan reached RMB 138.4 billion, a year-on-year increase of 58.6%[29] Corporate Governance and Compliance - The audit report for the company was issued with a standard unqualified opinion by Zhongshen Zhonghuan Accounting Firm[3] - The board of directors and supervisory board members confirmed the authenticity, accuracy, and completeness of the annual report[2] - The company has not engaged in any non-operating fund occupation by controlling shareholders or related parties[6] - The company has not violated decision-making procedures in providing guarantees to external parties[6] - The company is committed to transparency and effective information disclosure to ensure stakeholder trust and compliance with regulatory requirements[69] - The company has established a complete governance structure and independent organizational framework to ensure compliance with legal and regulatory requirements[112] Risk Management - The company has not identified any significant risks that would impact its ongoing operations during the reporting period[7] - The company faces risks from macroeconomic fluctuations, particularly due to the ongoing COVID-19 pandemic, which may adversely impact operational performance[67] - Regulatory risks in the civil aviation industry could affect the company's airport investment and operational management due to potential changes in government policies[67] Strategic Initiatives - The company is focusing on ensuring stable and long-term returns for investors amidst its current operational environment[4] - The company is actively expanding its market presence through new media partnerships and enhancing service quality[27] - The company plans to enhance its product offerings and technology development in the upcoming periods[52] - The company aims to improve its flight training services by offering promotional packages and expanding into new markets such as aviation experience products and vocational education[66] Employee and Management - The company employed a total of 8,776 staff, with 114 in the parent company and 8,662 in major subsidiaries[89] - The workforce includes 5,782 production personnel, 199 sales personnel, 1,592 technical personnel, 311 financial personnel, and 892 administrative personnel[89] - The company has a competitive salary policy aimed at attracting and retaining talent while ensuring fairness and motivation among employees[90] - The training program in 2021 focused on enhancing management quality, optimizing training systems, and improving training efficiency[91] Environmental and Social Responsibility - The company has actively engaged in environmental protection initiatives, including the installation of solar photovoltaic systems with a total capacity of 3.8MWP, generating approximately 4.5 million kWh of electricity in 2021[100] - The company replaced diesel shuttle buses with electric ones, resulting in a reduction of 76.88 tons of CO2 emissions annually[100] - The company has undertaken various green public welfare activities, including tree planting and waste collection campaigns, enhancing its corporate social responsibility profile[100] Legal and Financial Issues - The company is involved in several bankruptcy debt confirmation disputes, with claims totaling 56,801,109.54 CNY against Hainan Boao Airport[127] - The company has ongoing litigation related to bankruptcy claims, with amounts involved totaling approximately 14.8 million RMB and 58.6 million RMB in separate cases[125] - The company is involved in multiple legal disputes concerning construction contracts, indicating ongoing operational challenges[134] - The company has outstanding debts totaling ¥738,513,175.80, with a court case regarding unconfirmed debts of ¥1,107,769,763.64 related to Hainan Airport[130] Shareholder Information - The total number of shares increased from 3,907,592,460 to 11,425,309,602 due to a capital reserve conversion, resulting in a dilution of earnings per share from 0.1186 to 0.0405[150] - The largest shareholder, Hainan Development Holdings Co., Ltd., holds 2,800,000,000 shares, representing 24.51% of the total shares[160] - The second largest shareholder, HNA Infrastructure Investment Group Co., Ltd., holds 2,639,844,285 shares, representing 23.11% of the total shares[160] - The company has undergone a change in control, with Hainan Development Holdings becoming the controlling shareholder following a restructuring plan[163]