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]

Financial Performance - The net profit attributable to the parent company for 2020 was -7,736,830,872.54 CNY, indicating a significant loss [4]. - As of December 31, 2020, the undistributed profits amounted to -8,196,530,247.63 CNY, reflecting ongoing financial challenges [4]. - The company reported a negative net profit of -659,079,677.54 CNY for the year, with actual distributable profits for shareholders at 300,339,163.05 CNY [4]. - The company will not distribute profits for 2020 to enhance its ability to withstand risks and ensure long-term development [4]. - The company reported a net loss of CNY 8,636,761,425.99 after deducting non-recurring gains and losses, compared to a loss of CNY 1,043,232,517.81 in 2019, marking a decline of 727.88% [16]. - The company’s total operating revenue decreased by 45.23% to CNY 6.31 billion compared to the previous year [35]. - The company’s operating cash flow net amount was CNY 871 million, a decline of 62.35% year-on-year [35]. - The company reported a total comprehensive loss of CNY 19,064,541,778.39 for 2020, compared to a loss of CNY 4,267,080,801.22 in 2019 [182]. - The company incurred a financial expense of CNY 2,700,704,149.17 in 2020, which was an increase from CNY 1,771,251,525.60 in 2019 [179]. - The company reported a net profit attributable to ordinary shareholders of -7.74 billion RMB in 2020, -1.21 billion RMB in 2019, and 1.73 billion RMB in 2018, indicating a significant decline in profitability over the three years [70]. Bankruptcy and Financial Risks - The company is undergoing bankruptcy reorganization, affecting its ability to assess and disclose potential liabilities related to guarantees provided to HNA Group [3]. - There are significant uncertainties regarding the financial impact of non-operating fund occupation by related parties and potential credit losses [3]. - The audit report issued by Zhongzheng Zhonghuan CPA indicates an inability to express an opinion due to the ongoing bankruptcy proceedings [3]. - The company faces major risks related to its financial stability and operational continuity, as detailed in the risk section of the report [7]. - The company has acknowledged the existence of non-compliance in decision-making procedures regarding external guarantees [6]. - The company reported a beginning balance of 78,976,000 RMB for funds occupied, with an ending balance of 76,589,450 RMB, indicating a reduction of 1,386,550 RMB during the reporting period [79]. - A total of 182,324,930 RMB was occupied during the reporting period, with an ending balance of 181,862,460 RMB, reflecting a significant increase in occupied funds [79]. - The company plans to resolve the occupied funds through a bankruptcy reorganization plan, with expected repayment timelines set for February 2021 and after the completion of the reorganization [79]. - The company has already cleared 2,386,550 RMB of occupied funds through debt offsetting during the reporting period [79]. - The company has identified significant internal control deficiencies, including non-operational fund occupation by related parties and large unauthorized guarantees [151]. Revenue and Operational Performance - The company's operating revenue for 2020 was CNY 6,314,792,845.84, a decrease of 45.23% compared to CNY 11,529,506,164.31 in 2019 [16]. - The company’s total operating costs for 2020 were CNY 8,840,694,868.89, down from CNY 11,274,470,099.58 in 2019, reflecting a reduction of 21.6% [179]. - The company reported a total revenue of 1,307,000,000.00 for the year 2019, with a guarantee responsibility of 1,307,000,000.00 [95]. - The company achieved total sales revenue of RMB 2,087.01 million and a sales area of 119,648.38 square meters during the reporting period [50]. - The company reported a total of ¥899,930,553.45 in non-recurring gains and losses for the year, a significant increase from the previous year's loss of ¥471,927,690.71 [22]. Investments and Acquisitions - The company has made significant equity investments in various subsidiaries, including Hainan HNA Duty Free Co., Ltd. with an investment balance of CNY 22,285,136.66 (50% stake) and Hainan Pacific Petroleum Industry Co., Ltd. with CNY 265,283,767.27 (35.29% stake) [55]. - The company approved the acquisition of 100% equity in Hainan Yingping Construction Development Co., Ltd. for 1,050 million RMB and the acquisition of 100% equity in Hainan Tianyu Flight Training Co., Ltd. for 749 million RMB [90]. - The company plans to invest 2,500 million RMB in HNA Technology Co., Ltd., resulting in a 31.93% equity stake post-investment [90]. - The company has signed an agreement to acquire 100% equity in Tianjin Airport Commercial Center Development Co., Ltd. for 310 million RMB, although the transaction has faced delays due to shareholder issues [91]. Shareholder and Governance Issues - The company has committed to resolving competition issues with its controlling shareholder, HNA Group, by ensuring that HNA Group's subsidiaries do not engage in overlapping business operations with the company [72]. - HNA Group has pledged to divest certain real estate projects to eliminate competition with the company, with plans to complete sales within three years [73]. - The company has not engaged in any share buybacks during the reporting period, as indicated by the lack of cash repurchase plans [70]. - The company has established measures to ensure the independence of its board and senior management, ensuring compliance with legal and regulatory requirements [77]. - The company has a shareholding of 2,249,297,094 shares that are subject to lock-up restrictions until performance commitments are fulfilled [122]. Market and Industry Trends - The company is focused on stabilizing the real estate market, emphasizing that housing is for living, not speculation, as part of its future development strategy [60]. - The company aims to transform its investment strategy under the Hainan Free Trade Port policy, focusing on increasing the supply of affordable housing through targeted land supply and tax incentives [61]. - The duty-free shopping policy in Hainan is expected to boost sales, with the global market share of China's duty-free industry anticipated to increase due to favorable policies and promotional strategies [61]. - The company plans to expand its duty-free operations at Phoenix Airport, introducing multiple international luxury brands to enhance the shopping experience for departing travelers [65]. Social Responsibility and Community Engagement - The company completed poverty alleviation procurement amounting to 2.3957 million RMB, focusing on agricultural products such as eggs and pork [102]. - The company has supported 262 students through its educational assistance program, contributing over 280,000 RMB in donations, with 10 students receiving 12,000 RMB in 2020 [102]. - The company has actively engaged in social responsibility initiatives, including the construction of a charity bridge in Hainan and ongoing community clean-up activities [109]. Future Outlook - The company provided a positive outlook for 2021, projecting a revenue growth of 10% to 12% based on current market trends [128]. - New product launches are expected to contribute an additional 200 million in revenue in 2021, with a focus on innovative technology solutions [129]. - The company plans to invest 50 million in research and development for new technologies in the upcoming fiscal year [130].