Audit and Financial Integrity - The company reported a standard unqualified audit opinion from PwC, ensuring the accuracy and completeness of the financial report[6]. - The company emphasizes the importance of the accuracy and completeness of the annual report, with all board members present at the meeting[5]. - The company has engaged PwC to audit the effectiveness of its internal control design and execution, receiving a standard unqualified opinion[160]. Financial Performance - The company's operating revenue for 2021 was CNY 34,002,019 thousand, an increase of 15.65% compared to 2020[24]. - The net profit attributable to shareholders for 2021 was CNY 4,720,934 thousand, a significant recovery from a loss of CNY 64,003,308 thousand in 2020[24]. - The net cash flow from operating activities for 2021 was CNY 677,262 thousand, compared to a negative cash flow of CNY 506,068 thousand in 2020[24]. - The company reported a basic earnings per share of CNY 0.260 for 2021, recovering from a loss of CNY 3.834 per share in 2020[24]. - The total assets decreased by 12.96% to CNY 143,254,576 thousand at the end of 2021 compared to the end of 2020[24]. - The company achieved a revenue of 34.002 billion RMB in 2021, representing a year-on-year increase of 15.65%[48]. - The transportation revenue reached 30.905 billion RMB, up 16.67% year-on-year, primarily due to the gradual reduction of COVID-19 impacts and increased capacity and passenger volume[52]. Operational Highlights - The company transported 41.3 million passengers in 2021, an increase of over 8% compared to 2020[35]. - The company completed 765,600 flight hours and 332,400 flights in 2021, reflecting operational recovery amidst the pandemic[35]. - The company achieved an overall flight punctuality rate of 87.75% in 2021, marking a steady improvement for four consecutive years[42]. - Hainan Airlines operated nearly 1,800 domestic and international routes in 2021, including approximately 1,700 domestic routes and nearly 100 international routes, covering 30 cities abroad[37]. Sustainability Initiatives - In 2021, Hainan Airlines saved 73,000 tons of fuel and reduced carbon dioxide emissions by approximately 230,000 tons as part of its commitment to sustainable development[46]. - The "Green Path Carbon Offset" project has restored about 50 acres of degraded mangroves, contributing to biodiversity protection and regional economic development[165]. - Hainan Airlines has fully implemented the "Hainan Plastic Ban Policy" 63 days ahead of regulations, aiming to replace over 50 million single-use plastic items annually[165]. Risk Management - The company has detailed risk factors in the report, advising investors to be aware of potential unforeseen risks[10]. - The company faces significant risks from macroeconomic factors, including ongoing pandemic instability, rising fuel prices, and intense competition in the domestic aviation market[101]. - A 5% fluctuation in the RMB to USD exchange rate could impact the company's pre-tax profit by approximately 3,843 million yuan[101]. Corporate Governance - The company emphasizes the independence of its management team, ensuring that senior executives do not hold positions in other companies controlled by the major shareholder, thereby maintaining operational integrity[109]. - The company has established a dedicated investor relations management system to enhance communication and ensure equal access to information for all investors[109]. - The company has implemented strict procedures for related party transactions to protect the interests of minority shareholders[109]. Employee and Management Information - The total pre-tax remuneration for the reporting period amounted to CNY 1,982.05 million[119]. - The current president, Xu Jun, has a tenure starting from May 21, 2021, and is set to end on May 20, 2024, with a pre-tax remuneration of CNY 131.20 million[119]. - The company has a total of 34,200 shares held by Wu Feng, indicating no increase or decrease in shareholding[119]. Future Outlook - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 12% to 15%[124]. - New product launches are expected to contribute an additional 1 billion CNY in revenue, with a focus on enhancing customer experience[124]. - The company plans to implement a new loyalty program, expected to increase customer retention by 30%[124]. Compliance and Regulatory Matters - The company received a notice from the China Securities Regulatory Commission regarding a case filed for suspected violations of information disclosure laws on December 17, 2021[134]. - The company has no penalties from securities regulatory agencies in the last three years, except for the aforementioned case[134]. - The company has rectified issues identified in its self-inspection report regarding non-operating fund occupation and undisclosed guarantees[160]. Strategic Development - The company plans to optimize its core network and enhance operational efficiency by increasing the proportion of direct flights and improving route management[100]. - The company is committed to improving service quality and operational standards to ensure stable and healthy development amid external challenges[104]. - The company plans to complete the equity custody of airlines held by its controlling shareholder by the end of the 24-month extension period, which started from the shareholder meeting approval date[179].

Financial Performance - The company's operating revenue for Q3 2021 was CNY 8,923,560, representing a year-on-year increase of 9.71%[6] - The net profit attributable to shareholders for the same period was a loss of CNY 2,561,342, with no applicable year-on-year comparison[6] - Total operating revenue for the first three quarters of 2021 reached RMB 27,257,131 thousand, an increase from RMB 19,845,287 thousand in the same period of 2020[22] - The company reported a net loss of RMB 59,829,099 thousand as of September 30, 2021, compared to a loss of RMB 53,366,792 thousand at the end of 2020[22] - The net profit for the company was -3,966,485 thousand RMB, a decrease from -16,426,418 thousand RMB in the previous year, indicating a significant improvement[26] - Operating profit was reported at -7,159,163 thousand RMB, compared to -20,318,957 thousand RMB in the same period last year, showing a reduction in losses[26] - Total comprehensive income amounted to -4,227,879 thousand RMB, an improvement from -16,590,191 thousand RMB year-over-year[28] Assets and Liabilities - The total assets at the end of the reporting period amounted to CNY 213,452,162, reflecting a 29.70% increase compared to the end of the previous year[8] - Total assets increased to RMB 213,452,162 thousand as of September 30, 2021, compared to RMB 164,576,692 thousand at the end of 2020[20] - Total liabilities rose to RMB 244,623,903 thousand as of September 30, 2021, up from RMB 186,830,599 thousand at the end of 2020[20] - Total liabilities grew from 186.83 billion to 252.70 billion, an increase of 35.19%[38] - The company's equity attributable to shareholders decreased from -28.37 billion to -31.39 billion, a decline of 10.67%[38] Cash Flow - The cash flow from operating activities for the year-to-date was CNY 2,376,606, with an increase attributed to higher air transport revenue[11] - Cash flow from operating activities generated a net inflow of 2,376,606 thousand RMB, a recovery from -12,079,376 thousand RMB in the previous year[30] - The company received cash from sales and services totaling 28,746,081 thousand RMB, up from 19,410,910 thousand RMB year-over-year[30] - Cash outflow for purchasing goods and services was 20,134,659 thousand RMB, down from 25,700,569 thousand RMB in the previous year[30] - The company reported cash flow from investing activities with a net inflow of 87,651 thousand RMB, a decrease from 9,562,610 thousand RMB in the previous year[30] - Cash and cash equivalents at the end of the period totaled 4,876,184 thousand RMB, an increase from 3,118,954 thousand RMB year-over-year[30] - The company reported a total cash inflow from financing activities of 88,701 thousand RMB, compared to an outflow of 295,426 thousand RMB in the previous year[30] Shareholder Information - The company reported a total of 399,775 common shareholders at the end of the reporting period[12] - The major shareholder, Daxin Air Co., Ltd., holds 23.08% of the shares, amounting to 3,879,228,176 shares[12] Inventory and Investments - The company’s inventory increased to RMB 1,488,330 thousand as of September 30, 2021, compared to RMB 1,142,228 thousand at the end of 2020[17] - The company’s long-term equity investments were valued at RMB 10,302,035 thousand as of September 30, 2021, slightly up from RMB 10,250,172 thousand at the end of 2020[17] - The company’s total non-current assets amounted to RMB 142,238,977 thousand as of September 30, 2021, compared to RMB 98,297,775 thousand at the end of 2020[20] Operational Insights - The company experienced a decrease in operational losses for the year-to-date, contributing to improved net profit figures[11] - The company has not disclosed any new product developments or market expansion strategies in this report[6] - Total operating costs decreased to RMB 35,687,957 thousand in 2021 from RMB 37,094,830 thousand in 2020[22] - Financial expenses for the first three quarters of 2021 were RMB 1,762,286 thousand, down from RMB 3,115,854 thousand in 2020[22] - Cash and cash equivalents as of September 30, 2021, were RMB 7,862,051 thousand, a decrease from RMB 8,236,327 thousand at the end of 2020[17] - Non-current assets rose from 98.30 billion to 160.78 billion, marking a significant increase of 63.23%[35] - Current liabilities increased from 178.87 billion to 186.67 billion, a rise of 4.43%[35] - The company reported a significant increase in lease liabilities, now at 50.27 billion[35] - The total current assets remained at 66.28 billion, showing stability in liquidity[33]

Bankruptcy and Restructuring - The company is currently undergoing bankruptcy reorganization, with risks of being declared bankrupt if the reorganization fails[9]. - The company has been accepted for reorganization by the Hainan Provincial High Court as of February 10, 2021[9]. - The company is actively cooperating with the Hainan Provincial High Court and creditors to implement a restructuring plan aimed at reducing debt and optimizing the capital structure[63]. - The company and HNA Group have been accepted for bankruptcy reorganization by the court, and the company is actively cooperating with the administrator to formulate a reorganization plan[115]. - The reorganization plan submission deadline has been extended to November 10, 2021[118]. - The company is undergoing bankruptcy reorganization as of February 10, 2021, affecting all debts which will be settled under bankruptcy law[198]. - All outstanding bonds have ceased to accrue interest since the acceptance of the reorganization on February 10, 2021[199]. - The company's credit rating has been downgraded multiple times, with the latest rating at C as of February 22, 2021[195]. Financial Performance - The company's operating revenue for the first half of the year reached CNY 18,333,571, an increase of 56.54% compared to CNY 11,711,856 in the same period last year[21]. - The net profit attributable to shareholders was -CNY 880,889, showing an improvement from -CNY 11,823,220 year-on-year[21]. - The net cash flow from operating activities was CNY 1,831,913, a significant recovery from -CNY 7,945,814 in the previous year[21]. - Total assets increased by 32.28% to CNY 217,698,241 from CNY 164,576,692 at the end of the previous year[21]. - The company reported a total of CNY 2,634,454 in non-recurring gains and losses, primarily driven by debt restructuring gains of CNY 2,972,393[22]. - The net loss for the first half of 2021 was 968 million yuan, a reduction of 92.29% compared to the previous year[39]. - The company reported a total revenue of 4,465,778 thousand RMB for the first half of 2021, an increase from 3,899,823 thousand RMB in the same period last year, representing a growth of approximately 14.6%[140]. Operational Metrics - The company maintained a flight operation safety record of 26.67 million flight hours during the reporting period, with a cumulative total of over 8.6 million flight hours[31]. - The on-time flight rate for the first half of 2021 was 84.61%, an increase of 4 percentage points compared to the same period before the pandemic[32]. - The company operated a total of 345 aircraft as of June 30, 2021, with an average fleet age of 6.64 years[39]. - Passenger transport volume reached 23.24 million, up 78.20% year-on-year, and cargo and mail transport volume was 215,500 tons, increasing by 58.97%[39]. - The passenger load factor improved to 76.78%, up 7.42 percentage points from the previous year[41]. Risks and Challenges - The company faces risks related to its restructuring process, which could impact its financial stability and stock listing status[38]. - The company faces significant risks including macro industry risks due to ongoing global pandemic impacts on passenger transport[58]. - The company’s fuel costs accounted for 22.04% of operating costs in the first half of 2021, indicating vulnerability to oil price fluctuations[60]. - The company reported a net loss attributable to shareholders of RMB 880,889 thousand for the first half of 2021, significantly impacted by the decline in travel demand due to the pandemic[63]. - The company is currently involved in various legal disputes related to contract breaches, highlighting potential risks to its financial stability[132]. Shareholder and Capital Structure - The total number of common shareholders at the end of the reporting period was 397,472[174]. - The largest shareholder, Daxin Air Limited, holds 3,879,228,176 shares, representing 23.08% of total shares[174]. - The company has a total of 1,440,000,000 yuan in outstanding corporate bonds with a 6.20% interest rate, maturing on May 24, 2021[181]. - The company’s credit rating was downgraded from AA to C by Shanghai New Century Credit Rating Co., Ltd. due to bankruptcy restructuring applications[187]. - The company has a total bond balance of 2,500,000 with an interest rate of 8.78% maturing on October 21, 2021[192]. Related Party Transactions - The company reported a total of 7,994,838 thousand yuan in funds deducted by financial institutions due to guarantees provided to related parties in 2020[91]. - The company has identified non-operating fund occupation by shareholders and related parties, which will be addressed through debt transfer during the restructuring process[169]. - The total amount of non-operating funds occupied by controlling shareholders and other related parties is 38,003,064 thousand yuan, which accounts for a significant percentage of the latest audited net assets[103]. Social Responsibility and Environmental Initiatives - The company is actively involved in social responsibility initiatives, including the transportation of COVID-19 vaccines and support for national defense logistics[38]. - The company has initiated over 30 emission reduction projects since 2008, cumulatively reducing carbon dioxide emissions by approximately 1.988 million tons[74]. - The company has launched the "Green Path Carbon Offset" public welfare project, restoring approximately 50 acres of degraded mangrove forests[75]. - The company has become the first airline to fully implement the Hainan plastic ban policy, engaging over 3 million passengers in the initiative[75].