Financial Performance - Total revenue for the fiscal year ending December 31, 2024, was approximately RMB 8,823.0 million, an increase of about 26.3% compared to the previous year[6] - Net profit attributable to shareholders of the parent company was approximately RMB 2,074.3 million, representing an increase of about 48.3% year-over-year[6] - Earnings per share (EPS) for the year was RMB 0.71, up from RMB 0.48 in the previous year[9] - The company reported a total comprehensive income of RMB 2,280.8 million, compared to RMB 1,445.8 million in the previous year[9] - Operating profit for the year was RMB 2,402.5 million, compared to RMB 1,604.6 million in the previous year[7] - The company reported a net profit of RMB 2,074,273 thousand, compared to RMB 1,398,952 thousand in the previous year, resulting in earnings per share of RMB 0.71, up from RMB 0.48[33] - In 2024, the company's pre-tax profit was approximately RMB 2,394.5 million, an increase of about 48.5% compared to 2023[54] - The net profit attributable to shareholders was approximately RMB 2,074.3 million, reflecting an increase of about 48.3% year-on-year[54] - Total revenue for 2024 was approximately RMB 8,823.0 million, representing an increase of about RMB 1,839.2 million or 26.3% from 2023[56] Dividends and Shareholder Returns - The board proposed a final cash dividend of RMB 0.239 per share for the fiscal year 2024, which is included in the adjusted dividend policy of distributing 35%-45% of the net profit[6] - The proposed cash dividend for the fiscal year 2024 is RMB 699,364 thousand, equating to RMB 0.239 per share, pending shareholder approval[34] - The company plans to distribute a final dividend of RMB 699.4 million for the fiscal year 2024, which is approximately 35%–45% of the net profit attributable to the parent company[65] Operating Costs and Expenses - Total operating costs for the year were RMB 6,453.5 million, an increase from RMB 5,300.8 million in the previous year[7] - Total operating costs for the current period amounted to RMB 6,358,861 thousand, up from RMB 5,218,966 thousand in the previous period, reflecting a year-on-year increase of approximately 21.9%[36] - The company's total operating costs for 2024 were RMB 6,453.5 million, an increase of RMB 1,152.6 million or 21.7% from 2023[57] - Research and development expenses for the year were RMB 824.6 million, slightly down from RMB 863.0 million in the previous year[7] Assets and Liabilities - Cash and cash equivalents at the end of the fiscal year were RMB 10,548.9 million, up from RMB 7,367.6 million in the previous year[10] - The company’s total assets at the end of the fiscal year were RMB 20,498.2 million, an increase from RMB 18,126.2 million in the previous year[10] - Total assets increased to RMB 29,694,646 million, up from RMB 27,500,129 million, representing a growth of approximately 8% year-over-year[11] - Total liabilities increased to RMB 6,797,660 million, compared to RMB 6,481,535 million, indicating a growth of around 5%[12] - Owner's equity reached RMB 22,896,986 million, up from RMB 21,018,594 million, which is an increase of about 8.9%[13] - The asset-liability ratio of the group as of December 31, 2024, is 22.9%, down from 23.6% as of December 31, 2023[82] Investments and Capital Expenditures - The company has committed RMB 1 billion to the establishment of a private equity fund focused on 5G applications and related industries, with actual contributions of RMB 852,175 thousand as of December 31, 2024[28] - The company has invested RMB 852.2 million in the China Mobile Equity Fund as of December 31, 2024, focusing on the 5G industry applications[79] - The total capital expenditure for the group in fiscal year 2024 was RMB 545.6 million, a decrease from RMB 1,227.8 million in fiscal year 2023[85] - The company has committed approximately RMB 1,207.7 million for capital expenditures, primarily for daily operations and system upgrades[85] Operational Highlights - The system processing volume for domestic and international commercial airlines reached approximately 732.4 million passengers in 2024, representing an 18.1% increase compared to the previous year[39] - The group’s settlement and clearing system processed approximately 1,263.9 million transactions in 2024, a year-on-year growth of 24.2%[42] - The revenue from agency settlement for passenger, cargo, and mail transport exceeded RMB 66.38 billion, marking a 39.7% increase compared to the previous year[42] - The group signed contracts with 19 airlines for its digital retail platform, enhancing customer-centric business models[40] - The group has established direct connections with 134 foreign and regional airlines, covering over 400 cities and reaching 32 countries and regions by 2024[43] Future Outlook and Strategic Initiatives - The company is focusing on enhancing safety production stability and improving information security and data management levels in 2025[98] - The company plans to increase investment in technology innovation and accelerate the transformation of technological achievements in 2025[98] - The company aims to expand its market coverage of smart civil aviation products and promote high-quality international operations in 2025[98] - The company acknowledges the challenges posed by external uncertainties and intensified competition in the domestic civil aviation information market[97] - The company will continue to deepen reform initiatives and enhance its strategic planning for the 15th Five-Year Plan[98] - The company is committed to maintaining its leading position in the industry while exploring new growth opportunities in the digital economy and emerging industries[97]

中国民航信息网络申请基于多定价规则的过滤和去 重专利，提高定价规则去重的效率 天眼查资料显示，中国民航信息网络股份有限公司，成立于2000年，位于北京市，是一家以从事互联网 和相关服务为主的企业。企业注册资本292620.9589万人民币，实缴资本292620.9589万人民币。通过天 眼查大数据分析，中国民航信息网络股份有限公司共对外投资了39家企业，参与招投标项目2169次，财 产线索方面有商标信息137条，专利信息1543条，此外企业还拥有行政许可166个。 来源：金融界 金融界2025年3月25日消息，国家知识产权局信息显示，中国民航信息网络股份有限公司申请一项名 为"一种基于多定价规则的过滤和去重方法及相关装置"的专利，公开号CN 119669533 A，申请日期为 2024年10月。 专利摘要显示，本发明公开了一种基于多定价规则的过滤和去重方法及相关装置，包括：接收查询请 求，基于查询请求确定可售产品，可售产品至少为一个；获取与所述可售产品对应的各个初始定价规 则；获取可售产品的数量，在数量大于1的情况下，遍历各个初始定价规则，对各个初始定价规则进行 去重，得到各个备选定价规则；确定各个备选定价规 ...

Financial Performance - Total revenue for the first half of 2024 reached RMB 4,041.8 million, an increase of RMB 734.2 million or 22.2% compared to RMB 3,307.6 million in the first half of 2023[12]. - Net profit attributable to shareholders was RMB 1,367.2 million, up approximately 13.9% from RMB 1,200.4 million in the same period last year[11]. - Revenue from aviation information technology services accounted for 56.0% of total revenue, increasing from RMB 1,890.1 million to RMB 2,265.0 million, a growth of 19.8%[12]. - Settlement and clearing revenue rose by 50.0%, from RMB 185.4 million to RMB 278.0 million, representing 6.9% of total revenue[12]. - System integration service revenue surged by 111.9%, from RMB 320.9 million to RMB 679.8 million, making up 16.8% of total revenue[13]. - Total operating revenue for the first half of 2024 reached RMB 4,041,791,212.19, a 22.2% increase from RMB 3,307,555,567.64 in the same period last year[77]. - Operating profit for the first half of 2024 was RMB 1,613,655,709.35, compared to RMB 1,338,680,209.07 in the previous year, reflecting a growth of 20.5%[78]. - Net profit attributable to shareholders for the first half of 2024 was RMB 1,376,815,468.69, up from RMB 1,207,653,920.80, marking a 14% increase year-over-year[78]. - Comprehensive income attributable to the parent company for the first half of 2024 was RMB 1,412,617,483.14, compared to RMB 1,209,218,451.85 in the previous year, indicating a growth of 16.8%[80]. Operational Highlights - In the first half of 2024, the group processed approximately 352.0 million system transactions for domestic and international airlines, representing a year-on-year increase of about 24.0%[5]. - The group's settlement and clearing system handled approximately 606.1 million transactions, a year-on-year growth of 36.0%[6]. - The revenue from agency settlement for passenger, cargo, and postal services exceeded RMB 29.67 billion, marking a year-on-year increase of 66.6%[6]. - The self-service check-in system (CUSS) was implemented in 235 major airports, processing approximately 221 million departing passengers[4]. - The group expanded its electronic travel distribution (ETD) system, with 204 foreign and regional airlines using its services, processing approximately 506,000 departing passengers at 48 airports[5]. - The group has successfully launched 27 out of 30 certified neutral settlement systems in overseas markets along the Belt and Road Initiative[7]. - The group participated in smart airport projects, signing contracts for the T5 terminal at Xi'an Airport and the third phase of Lanzhou Airport[8]. - The APP front-end system for departure processing dominated in large and medium-sized domestic airports, handling approximately 19.47 million departing passengers, accounting for about 95.9% of returning passengers from Chinese airlines[8]. Cost and Expenditure - Total operating costs for the first half of 2024 were RMB 2,535.3 million, an increase of RMB 357.1 million or 16.4% compared to RMB 2,178.2 million in the first half of 2023[15]. - Personnel costs increased by 31.7%, primarily due to a decrease in capitalized R&D expenses and growth in employee social insurance-related expenditures[15]. - Depreciation and amortization rose by 14.1%, mainly due to increased amortization of intangible assets from self-developed projects[15]. - Software and hardware sales costs surged by 142.1%, attributed to the orderly progress of engineering construction and an increase in the scale and number of projects reaching completion[15]. - The total capital expenditure for the group in the first half of 2024 is RMB 141.5 million, a decrease from RMB 363.1 million in the same period of 2023[37]. - The group has committed capital expenditures of approximately RMB 1,302.1 million, primarily for daily operations and system upgrades[37]. Cash Flow and Financial Position - The net cash inflow from operating activities for the first half of 2024 was RMB 1,287.4 million[21]. - The group maintained a cash and cash equivalents balance of RMB 9,562.5 million as of June 30, 2024[21]. - The fair value of the investment in China Merchants Renhe Life Insurance as of June 30, 2024, is approximately RMB 882.5 million, accounting for 2.9% of the group's total assets[29]. - The asset-liability ratio of the group as of June 30, 2024, is 26.5%, an increase from 23.6% as of December 31, 2023[34]. - The company's current assets totaled RMB 20,895,928,151.69, up from RMB 18,126,205,041.15, indicating an increase of about 15.2% year-over-year[64]. - Cash and cash equivalents reached RMB 9,609,663,328.73, compared to RMB 7,367,554,453.37, reflecting a significant increase of approximately 30.2%[64]. - The company's short-term borrowings rose to RMB 1,151,999,999.00 from RMB 751,589,902.50, marking an increase of around 53.3%[67]. - Total liabilities increased to RMB 7,889,835,245.66 from RMB 6,193,493,525.98, which is an increase of approximately 27.4%[67]. Shareholder and Governance Information - The board of directors has proposed not to declare an interim dividend for the first half of 2024[42]. - Major shareholders include China Civil Aviation Information Group Co., Ltd., holding 43.38% of domestic shares, and China Mobile Communications Group Co., Ltd., holding 14.65%[46]. - The company has fully complied with the corporate governance code except for temporary deviations regarding the roles of the chairman and CEO, and the rotation of directors[56]. - The company aims to maintain high levels of corporate governance and transparency to all market participants and regulatory bodies[55]. - The company has adopted the corporate governance code as part of its governance framework[55]. Strategic Initiatives - The company aims to enhance its international operations and achieve high-quality business objectives while focusing on technological innovation and core technology breakthroughs[41]. - The company is committed to accelerating the construction of a world-class enterprise and enhancing its safety capabilities[41]. - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[96]. - The financial report is prepared based on the going concern assumption, complying with relevant accounting standards and regulations[107]. Research and Development - Research and development expenses for the first half of 2024 were RMB 431,960,329.68, significantly higher than RMB 275,217,130.34 in the previous year, indicating a 56.8% increase[77]. - The company is focusing on market expansion and technological advancements as part of its strategic initiatives for future growth[82]. Accounting Policies and Financial Reporting - The financial statements comply with the accounting standards issued by the Ministry of Finance, accurately reflecting the company's financial position as of June 30, 2024, and the operating results and cash flows for the first half of 2024[110]. - The company recognizes revenue when control of goods or services is transferred to the customer, which means the customer can dominate the use and obtain almost all economic benefits[192]. - The company recognizes impairment losses for non-current assets held for sale when their carrying amount exceeds the fair value less costs to sell[153].

Financial Performance - Total operating revenue for the six months ended June 30, 2024, was RMB 4,041,791, an increase of 22.2% compared to RMB 3,307,556 in the previous period[4] - Operating profit for the same period was RMB 1,613,656, up 20.5% from RMB 1,338,680 in the prior year[4] - Net profit attributable to shareholders for the period was RMB 1,367,221, representing a 13.9% increase from RMB 1,200,385 in the previous period[5] - The company reported a total comprehensive income of RMB 1,422,212 for the period, compared to RMB 1,216,487 in the previous period, marking a 17.0% increase[5] - Basic and diluted earnings per share for the period were both RMB 0.47, an increase from RMB 0.41 in the prior year[5] - The company’s total operating costs were RMB 2,535,291, which is a 16.4% increase from RMB 2,178,181 in the previous period[4] - The company’s investment income decreased to RMB 39,335 from RMB 44,643 in the previous period, reflecting a decline of 11.5%[4] - In the first half of 2024, the total profit of the group was RMB 1,605.7 million, an increase of approximately 19.2% compared to RMB 1,346.9 million in the first half of 2023[62] - The net profit attributable to the parent company's shareholders was RMB 1,367.2 million, up about 13.9% from RMB 1,200.4 million in the same period last year[70] - Total revenue for the first half of 2024 was RMB 4,041.8 million, representing an increase of RMB 734.2 million or 22.2% from RMB 3,307.6 million in the first half of 2023[64] Assets and Liabilities - Total assets as of June 30, 2024, amounted to RMB 29,976,966, an increase from RMB 27,500,129 at the end of the previous year[9] - Total liabilities increased to RMB 7,949,064 thousand, up from RMB 6,481,535 thousand, representing a growth of approximately 22.7% year-over-year[11] - Current liabilities rose to RMB 7,889,835 thousand, compared to RMB 6,193,494 thousand, marking an increase of about 27.4% year-over-year[11] - Non-current liabilities decreased significantly to RMB 59,229 thousand from RMB 288,042 thousand, a decline of approximately 79.4% year-over-year[11] - Total equity reached RMB 22,027,902 thousand, up from RMB 21,018,594 thousand, reflecting an increase of about 4.8% year-over-year[12] - The company’s retained earnings grew to RMB 12,953,116 thousand from RMB 12,171,069 thousand, an increase of about 6.4% year-over-year[12] - The company’s short-term borrowings increased to RMB 1,152,000 thousand from RMB 751,590 thousand, a rise of approximately 53.3% year-over-year[11] - The asset-liability ratio as of June 30, 2024, was 26.5%, an increase from 23.6% as of December 31, 2023[89] Cash Flow and Investments - Cash and cash equivalents increased to RMB 9,609,663, up from RMB 7,367,554 at the end of the previous year, reflecting a growth of 30.0%[7] - The company achieved a net cash inflow from operating activities of RMB 1,287.4 million in the first half of 2024[71] - The total investment in non-listed company, China Merchants Renhe Life Insurance Co., Ltd., was valued at RMB 882,453 thousand as of June 30, 2024, reflecting an increase from RMB 830,474 thousand year-over-year[31] - The fair value of the investment in China Merchants Renhe Life Insurance was approximately RMB 882.5 million, representing 2.9% of the group's total assets[85] - The group’s cash and cash equivalents amounted to RMB 9,562.5 million, with 97.85% in RMB, 1.83% in USD, and 0.16% in HKD[73] Operational Highlights - In the first half of 2024, the group processed approximately 352.0 million passengers through its electronic travel distribution (ETD) system, representing a year-on-year increase of about 24.0%[50] - The group completed approximately 606.1 million transactions in its settlement and clearing system, a year-on-year growth of 36.0%[53] - The revenue from agency settlement for passenger, cargo, and postal transport exceeded RMB 29.67 billion, reflecting a year-on-year increase of 66.6%[53] - The group signed contracts with 4 airlines for its Airline Total Operations Management System (ATOMS), enhancing operational efficiency and safety[52] - The group’s self-service check-in system (CUSS) is now in use at 235 major airports, processing approximately 221 million departing passengers[52] - The group has expanded its market presence with 204 foreign and regional airlines using its airport passenger processing system services, handling about 5.06 million departing passengers[50] - The group has successfully implemented 27 out of 30 certified neutral settlement systems in overseas markets along the Belt and Road Initiative[55] - The group’s smart airport solutions have been deployed at 252 airports, enhancing connectivity and service efficiency[56] - The group has signed contracts for new projects, including the T5 terminal at Xi'an Airport and the third phase of Lanzhou Airport, focusing on digital and intelligent solutions[56] Research and Development - Research and development expenses rose to RMB 431,960, a significant increase of 56.8% compared to RMB 275,217 in the prior year[4] - The company received 12 technology awards and 92 patent authorizations, including 87 invention patents, marking a significant achievement in innovation[62] Corporate Governance and Compliance - The company maintains a preferential corporate income tax rate of 15% as a recognized "High-tech Enterprise" until 2025[23] - The company is committed to improving corporate governance and has adopted the corporate governance code as per the listing rules, although it has temporarily deviated from certain provisions[100][101] - The audit and risk management committee has discussed and reviewed the unaudited interim results for the six months ended June 30, 2024, focusing on internal controls and risk management[104] - The company has fully complied with the standard code regarding securities trading by directors during the six months ended June 30, 2024[103] Future Outlook - The company anticipates a stable growth trend in the Chinese civil aviation transportation market, with domestic passenger traffic continuing to grow naturally and international passenger traffic further recovering[96] - The company aims to enhance its technological innovation capabilities and promote key core technology breakthroughs while accelerating the establishment of a world-class enterprise[96]

Financial Performance - For the fiscal year ending December 31, 2023, the company reported total revenue of RMB 6,983,847,000, an increase from RMB 5,210,106,000 in the previous year, representing a growth of approximately 34%[5] - The total profit for the year was RMB 1,612,136,000, up from RMB 735,139,000 in 2022, indicating a growth of about 119%[5] - Net profit attributable to shareholders was RMB 1,398,952,000, compared to RMB 627,052,000 in the prior year, reflecting an increase of approximately 123%[5] - Basic and diluted earnings per share for the year were RMB 0.48, up from RMB 0.21 in 2022, indicating a growth of approximately 128%[5] - In 2023, the company achieved total revenue of RMB 6.98 billion, a year-on-year increase of 34.0%[9] - Net profit attributable to shareholders reached RMB 1.40 billion, representing a year-on-year growth of 123.1%[9] - Earnings per share increased to RMB 0.48, up 128.6% compared to the previous year[9] - The company’s pre-tax profit was approximately RMB 1,612.1 million, an increase of about 119.3% compared to 2022[30] - The total operating costs for the fiscal year 2023 amounted to RMB 5,300.8 million, an increase of RMB 571.3 million or 12.1% compared to RMB 4,729.5 million in 2022[34] Assets and Liabilities - The company's total assets as of December 31, 2023, reached RMB 27,500,129,000, up from RMB 25,237,623,000 in 2022, marking a growth of about 9%[6] - Total liabilities increased to RMB 6,481,535,000 from RMB 5,495,393,000, which is an increase of approximately 18%[6] - The total equity of the company rose to RMB 21,018,594,000, compared to RMB 19,742,230,000 in the previous year, representing an increase of about 6.5%[6] - The asset-liability ratio of the group as of December 31, 2023, is 23.6%, up from 21.8% in the previous year[57] - Total liabilities increased to RMB 6,481,535,099.77, up from RMB 5,495,393,104.48, representing a growth of approximately 18% year-over-year[186] - Total assets reached RMB 27,500,129,430.98, compared to RMB 25,237,623,430.91 in the previous year, indicating an increase of about 9%[188] Operational Highlights - The company processed approximately 620.1 million passenger trips through its electronic travel distribution (ETD) system, a growth of about 148.7% year-on-year[14] - Domestic passenger traffic exceeded pre-pandemic levels, growing by 1.5% compared to 2019, while international routes recovered to 62.8% of 2019 levels[13] - The company expanded its distribution network to reach 33 countries and regions, supporting the recovery of Chinese airlines in international markets[9] - The group processed approximately 1,017.7 million transactions in its settlement and clearing system, representing a year-on-year growth of 78.1%[18] - Revenue from agency settlement for passenger, cargo, and postal transport exceeded 47.53 billion RMB, marking a year-on-year increase of 116.2%[18] Research and Development - The company achieved significant advancements in technology innovation, including the establishment of a national enterprise technology center and a national postdoctoral research station[28] - Research and development expenses for 2023 were RMB 863,038,653.00, up from RMB 701,713,632.36 in the previous year, indicating a 23% increase[192] Corporate Governance - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange Listing Rules, ensuring effective governance policies are in place[62] - The company deviated from the code regarding the separation of roles between the Chairman and CEO, with the same individual currently holding both positions as a transitional arrangement[62] - The company has established four specialized committees: Audit and Risk Management Committee, Remuneration and Assessment Committee, Nomination Committee, and Strategic and Investment Committee[68] - The company emphasizes a corporate culture focused on safety, service, and innovation, aiming to create value through information services[64] - The company has implemented strict anti-corruption policies and established transparent reporting channels for whistleblowers[67] Shareholder Information - The company proposed a final cash dividend of RMB 468.2 million for the fiscal year 2023, which equates to RMB 0.16 per share based on 2,926,209,589 shares outstanding[41] - As of December 31, 2023, the reserves available for distribution to shareholders amounted to RMB 8,200.3 million, up from RMB 7,419.5 million as of December 31, 2022[42] - The company reported a total issued share capital of 2,926,209,589 shares as of December 31, 2023, with a par value of RMB 1.00 per share[116] - Domestic shares account for 68.13% of the total share capital, while H shares represent 31.87%[116] Compliance and Risk Management - The company has established a comprehensive risk management and internal control system to ensure the effectiveness of its operations, with the board responsible for its implementation and management[93] - The internal control system is subject to annual evaluations to identify and rectify any deficiencies, ensuring continuous improvement and compliance with external regulations[97] - The company has a dedicated internal audit department that assesses the effectiveness of the risk management and internal control systems annually[98] - The audit report confirmed that the financial statements fairly reflect the company's financial position as of December 31, 2023[174] Employee Information - The company has a workforce of 6,620 employees as of December 31, 2023[2] - The company has a total of 6,620 employees, with a gender ratio of approximately 6:4, which aligns with regional and industry standards[101] Investor Relations - The company has responded to nearly 3,500 investor inquiries throughout the year, achieving a 100% response rate for investor hotline and email inquiries[109] - The company has conducted extensive communication with nearly 900 domestic and international shareholders and investors through various channels, including performance briefings and one-on-one meetings[109] - The company has maintained effective communication policies to ensure transparency and compliance with shareholder and investor needs[107]

Financial Data and Key Metrics Changes - The net profit attributable to shareholders increased to approximately RMB1.399 billion, representing a year-on-year growth of 123% [84] - Operating income for 2023 totaled around RMB6.984 billion, up by 34% year-on-year [108] - The diluted earnings per share rose to RMB0.48, reflecting an increase of 128.6% year-on-year [108] - Operating costs in the second half of 2023 were RMB3.12 billion, compared to RMB2.18 billion in the first half, marking a 43.4% increase [7] Business Line Data and Key Metrics Changes - Income from Aviation Information Technology (AIT) services reached RMB3.85 billion, up by 149% year-on-year [90] - Revenues from settlement and clearing services increased to RMB447 million, up by 52.1% [90] - Revenue from system integration services was RMB994 million, down by 41.4% due to project completion delays [6] Market Data and Key Metrics Changes - The system processed 620 million passengers in 2023, a 148.7% increase year-on-year, reaching 90% of the 2019 level [78] - Domestic passenger processing increased by 147.6% year-on-year, reaching 91.8% of the 2019 level [78] - Revenue from data network services was RMB390 million, down by 5.3% compared to the previous year [79] Company Strategy and Development Direction - The company aims to focus on high-quality development and innovation capabilities while maintaining stability [84] - Plans to enhance cooperation with domestic airports and strengthen smart airport services through promotional activities [95] - The company is committed to green and low-carbon development, with initiatives recognized by national authorities [76][66] Management Comments on Operating Environment and Future Outlook - The management noted a steady recovery in the civil aviation industry post-COVID, which has positively impacted business development [84] - Future CapEx is expected to remain stable, typically around RMB700 million to RMB800 million, with potential increases if new projects commence [53] - The company plans to continue investing in R&D and technical support to strengthen core capabilities and competitiveness [24] Other Important Information - The company has been recognized as a national high-tech company for 23 consecutive years and has received numerous awards for innovation [87] - The company has set aside RMB304 million for expected credit losses, maintaining consistent provisioning policies [11] Q&A Session All Questions and Answers Question: Will there be changes to the dividend policy? - The company is actively looking into market cap evaluation as per SASAC requirements and will consider this in their dividend policy [13][14] Question: What are the plans regarding mobile communication? - The company has established a general aviation short-haul transportation information network and is working on digital solutions for regional routes [15] Question: Why did the revenue from data network services decline despite market growth? - The decline is attributed to the widespread use of new technologies and modes, leading to fewer agents using the data network services [17] Question: What is the outlook for labor costs? - Labor costs will increase in proportion to profit growth, with a focus on attracting and retaining talent [47] Question: What measures are being taken for carbon neutrality? - The company has implemented energy-saving measures in data centers and is recognized for its efforts in energy efficiency [66][39]

Financial Performance - Total revenue for the fiscal year ended December 31, 2023, was approximately RMB 6,983.8 million, an increase of about 34.0% compared to the previous year[5] - Net profit attributable to shareholders of the parent company was approximately RMB 1,399.0 million, representing an increase of about 123.1% year-over-year[5] - Earnings per share for the fiscal year was RMB 0.48, up from RMB 0.21 in the previous year[10] - The company reported a total profit of RMB 1,612.1 million, compared to RMB 735.1 million in the previous year[8] - The company achieved a significant increase in investment income, reporting RMB 81.6 million compared to RMB 30.6 million in the previous year[6] - The revenue from aviation information technology services accounted for 55.1% of total revenue in 2023, up from 29.7% in 2022, with a significant increase of 149.0% to RMB 3,850.8 million[80] - The revenue from settlement and clearing services increased by 52.1% to RMB 447.3 million in 2023, accounting for 6.4% of total revenue[83] Dividends and Shareholder Returns - The board proposed a final cash dividend of RMB 0.16 per share for the fiscal year 2023[5] - The company declared a cash dividend of RMB 0.053 per share for the 2022 final dividend, totaling RMB 155,089 thousand, and proposed a cash dividend of RMB 0.16 per share for the 2023 final dividend, totaling RMB 468,194 thousand, pending shareholder approval[47] - As of December 31, 2023, the reserves available for distribution to shareholders amounted to RMB 8,200.3 million, up from RMB 7,419.5 million as of December 31, 2022[94] Operating Costs and Expenses - Total operating costs for the year were RMB 5,300.8 million, compared to RMB 4,729.5 million in the previous year[6] - The company’s operating costs for the current period were RMB 3,316,519 thousand, compared to RMB 3,089,871 thousand in the previous period, representing an increase of approximately 7.3%[42] - Total operating costs for 2023 were RMB 5,300.8 million, an increase of RMB 571.3 million or 12.1% from RMB 4,729.5 million in 2022[82] - The company achieved a 14.4% increase in labor costs due to higher employee compensation and social insurance expenses[82] - The company experienced a 212.6% increase in commission and promotion expenses, primarily due to a significant year-on-year increase in passenger volume[86] Assets and Liabilities - The total assets as of December 31, 2023, amounted to RMB 27,500.1 million, up from RMB 25,237.6 million in the previous year[14] - Total liabilities increased to RMB 6,481,535,000 from RMB 5,495,393,000, representing a growth of 18% year-over-year[16] - Current liabilities rose to RMB 6,193,494,000, up from RMB 5,142,697,000, marking an increase of 20%[16] - Non-current liabilities decreased to RMB 288,042,000 from RMB 352,696,000, a decline of 18%[16] - Total equity increased to RMB 21,018,594,000 from RMB 19,742,230,000, reflecting an increase of 6.5%[17] - The asset-liability ratio as of December 31, 2023, is 23.6%, up from 21.8% on December 31, 2022[112] Research and Development - Research and development expenses increased to RMB 863.0 million from RMB 701.7 million, reflecting a focus on innovation[6] - The company was recognized as a national-level enterprise technology center and established a national-level postdoctoral research workstation, enhancing its innovation capabilities[75] Operational Highlights - The company processed approximately 620.1 million passenger transactions through its electronic travel distribution (ETD) system, a growth of about 148.7% compared to the previous year[57] - In 2023, the company processed approximately 1,017.7 million transactions in its settlement and clearing system, representing a year-on-year growth of 78.1%[61] - The company signed contracts with 19 airlines for its digital retail platform solution, supporting a customer-centric business model[58] - The company established connections with 142 foreign and regional commercial airlines, expanding its distribution network to over 400 cities and reaching 33 countries and regions[63] Future Outlook - The outlook for 2024 indicates a focus on high-quality development in the civil aviation industry, driven by increased domestic demand and structural reforms[126] - The company plans to enhance safety levels, improve operational quality, accelerate strategic industry layout, and increase technological innovation efforts in 2024[128] - The company aims to deepen reforms, enhance talent incentive mechanisms, and optimize business structures to promote high-quality development[128] Governance and Compliance - The board of directors includes executive, non-executive, and independent non-executive members, ensuring a diverse governance structure[130] - The Audit and Risk Management Committee has reviewed the accounting policies and practices adopted by the group, discussing matters related to audit, risk management, and internal controls[122] - The company appointed Lixin Certified Public Accountants as the auditor for the fiscal year 2023, with a recommendation to reappoint them for 2024[123]

Financial Performance - In the first half of 2023, the total profit of the group was RMB 1,346.9 million, an increase of approximately 191.1% compared to RMB 462.7 million in the same period of 2022[24]. - The net profit attributable to the parent company's shareholders was RMB 1,200.4 million, up approximately 171.0% from RMB 443.0 million in the first half of 2022[24]. - Total revenue for the first half of 2023 was RMB 3,307.6 million, representing an increase of RMB 1,035.6 million or 45.6% from RMB 2,272.0 million in the same period of 2022[25]. - Operating profit for the first half of 2023 was RMB 1,338,680,209.07, compared to RMB 418,235,787.17 in the previous year, indicating a substantial increase of about 219.5%[87]. - Net profit for the first half of 2023 amounted to RMB 1,207,653,920.80, up from RMB 455,820,238.46 in the prior year, reflecting an increase of approximately 164.5%[87]. Revenue Breakdown - Revenue from agency settlement for passenger, cargo, and postal transport, as well as miscellaneous fees and international and domestic clearing fees exceeded $2.57 billion, reflecting a year-on-year increase of 100.8%[18]. - Revenue from aviation information technology services accounted for 57.1% of total revenue in the first half of 2023, up from 35.3% in the same period of 2022, with an increase from RMB 801.9 million to RMB 1,890.1 million, a growth of 135.7%[25]. - Settlement and clearing revenue increased by 31.4% to RMB 185.4 million in the first half of 2023, compared to RMB 141.1 million in the same period of 2022[27]. Cost and Expenses - Total operating costs for the first half of 2023 were RMB 2,178.2 million, an increase of RMB 354.8 million or 19.5% from RMB 1,823.4 million in the same period of 2022[30]. - Labor costs increased by 13.1% due to higher employee compensation and social insurance expenses[30]. - Research and development expenses for the first half of 2023 were RMB 275,217,130.34, up from RMB 216,765,622.61 in the same period last year, indicating an increase of about 27%[86]. Cash Flow and Liquidity - The net cash inflow from operating activities for the first half of 2023 was RMB 1,011.2 million[35]. - Cash and cash equivalents amounted to RMB 4,933,610,343.78, an increase from RMB 4,646,870,810.21, showing a rise of about 6.2%[83]. - The cash flow from operating activities for the first half of 2023 was RMB 1,011,222,951.49, compared to RMB 496,670,492.62 in the previous year, marking an increase of about 103%[94]. Assets and Liabilities - As of June 30, 2023, the total assets of the company amounted to RMB 28,181,129,502.66, an increase from RMB 25,262,644,119.55 at the end of the previous year, representing a growth of approximately 7.6%[80]. - Total liabilities increased to RMB 7,377,501,262.35, up from RMB 5,520,413,793.01 year-over-year, representing a growth of approximately 33.6%[81]. - The asset-liability ratio as of June 30, 2023, was 26.2%, compared to 21.9% as of December 31, 2022[47]. Share Capital and Equity - The issued share capital as of June 30, 2023, was 2,926,209,589 shares, with domestic shares accounting for 68.13% and H shares for 31.87%[59]. - The total equity attributable to the parent company increased to RMB 20,283,507,913.86 from RMB 19,229,378,570.23, showing a growth of approximately 5.5%[82]. - The company reported a profit distribution of RMB 155,089,108.22 to shareholders during the period, which reflects a decrease in retained earnings[101]. Corporate Governance and Compliance - The company has made amendments to its articles of association to enhance corporate governance and comply with regulatory requirements[58]. - The company confirmed that all directors complied with the standard code regarding securities trading during the six months ending June 30, 2023[74]. - The company is committed to maintaining high levels of corporate governance and transparency to all market participants and regulatory bodies[72]. Technological Developments - The group has established a third-generation passenger revenue management platform in line with new distribution capabilities (NDC) and One Order trends[18]. - The group has deployed facial recognition boarding at 54 major airports and has promoted the One ID passenger service platform to over 20 domestic airports[19]. - The group launched the first airport digital RMB solution at Changsha Huanghua International Airport, becoming a pioneer in the civil aviation industry[20]. Market and Business Strategy - The company plans to focus on enhancing core system autonomy and promoting "dual carbon" technology innovation in the second half of 2023[54]. - The company aims to maximize fund returns by selecting principal-protected financial products with higher interest rates than bank deposits[38]. - The company plans to focus on market expansion and new product development in the upcoming quarters[100].

Financial Data and Key Metrics Changes - In the first half of 2023, the company achieved total operating income of RMB3.3 billion, representing a 45% increase year-on-year [14] - Basic and diluted earnings per share increased by 173% to 0.41 RMB [14] - Profits attributable to shareholders reached RMB1.2 billion [14] Business Line Data and Key Metrics Changes - Revenue from Aviation Information Technology Services reached RMB1.89 billion, a significant increase from RMB802 million year-on-year [15] - Revenue from online payment transactions increased to RMB710 million due to the recovery of passenger volume [16] - Revenue from technical services amounted to RMB312 million, reflecting a 40% increase year-on-year [31] Market Data and Key Metrics Changes - The company processed approximately 283.9 million passengers, a 143% increase compared to the previous period, recovering to 84.2% of the same period in 2019 [3] - Domestic airlines' processing volume reached 99.19% of 2019 levels, while international flights showed recovery rates of 29.60% and 39.45% for foreign and regional airlines respectively [39][40] Company Strategy and Development Direction - The company is focusing on high-quality development of core businesses and expanding market presence in aviation information technology services [2] - It aims to provide higher quality and more convenient services to customers while creating stable returns for shareholders [12] - The company is actively promoting carbon neutrality and technological innovation [10][11] Management's Comments on Operating Environment and Future Outlook - The management acknowledged a complicated global economic landscape but emphasized that the long-term growth characteristics of China's economy remain unchanged [12] - The company expects to see stable momentum in revenue growth driven by the recovery in civil aviation transport [31] Other Important Information - The company has been recognized as the first national enterprise technology center in the civil aviation industry, obtaining 48 patents [8] - It has implemented a three-tiered ESG governance structure to oversee and improve its ESG initiatives [33][34] Q&A Session Summary Question: About the per passenger transaction fee - The company noted that the per passenger fee decreased due to a substantial increase in traveler numbers, but this would not significantly affect overall revenue [21] Question: Regarding technical services costs and NDC applications - The company acknowledged that COVID-19 impacted revenue and expects more project completions in the second half of the year [23] - It is actively supporting domestic airlines in establishing NDC platforms [24][26] Question: About equity-based incentive programs - The company is pushing forward with its equity-based incentive plan, which requires regulatory compliance and board approval [27][28] Question: On other revenues and sustainability - The impressive revenue performance in payment and technical services is attributed to the recovery in civil aviation transport, and the company expects stable growth momentum [30][31] Question: About ESG governance and carbon neutrality - The company has established a comprehensive ESG governance system and is implementing measures to achieve carbon peak and neutrality by 2030 [33][35][36] Question: Forecast on customer structure and travel seasons - The company observed a rapid recovery in passenger numbers and expects domestic flights to meet recovery forecasts while international flights will follow a gradual recovery [39][40] Question: System integration revenue confirmation - The company anticipates stabilization in system integration revenue for the second half of the year, close to 2022 levels [42] Question: Increase in other payments - The increase in payments is driven by a dramatic rise in passenger volume and partnerships with third-party payment companies [43] Question: Plans for Umetrip listing - The company is currently assessing Umetrip's capital and business development for future public listing considerations [44]

TravelSky Technology Limited (A joint stock limited company incorporated in the People's Republic of China with Iimited liability) Stock Code: 00696.HK H Shares Listed on Feb. 7, 2001 First Level ADR Traded on Dec. 27, 2002 2023 INTERIM RESULTS Aug.2023 © Copyright 2020 TravelSky Technology Limited Please scan the QR code, if you need this document Disclaimer The information contained in this document is for general informational purposes only and does not constitute an offer, solicitation, invitation or re ...