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].