Financial Performance - The total revenue for the six months ended June 30, 2024, was RMB 64,199 million, an increase of 29.6% compared to RMB 49,511 million for the same period in 2023[3]. - The net loss for the period was RMB 3,099 million, an improvement from a net loss of RMB 6,584 million in the same period last year[4]. - The total comprehensive loss for the period was RMB 3,295 million, compared to RMB 6,640 million in the previous year[4]. - The basic and diluted loss per share attributable to equity holders of the company was RMB (0.12), compared to RMB (0.28) for the same period in 2023[3]. - The company reported a basic loss per share of approximately RMB 2,768 million, calculated based on a weighted average of 22.291 billion shares issued[42]. - The net loss attributable to shareholders was RMB 2.768 billion, a significant reduction of RMB 3.490 billion compared to the previous year[91]. Revenue Breakdown - For the six months ended June 30, 2024, the total revenue from the aviation business segment was RMB 64,044 million, while the other business segment generated RMB 155 million[22]. - Domestic revenue reached RMB 44,961 million, up from RMB 41,835 million, indicating a growth of about 5.1% year-over-year[30]. - International revenue surged to RMB 17,407 million, compared to RMB 6,559 million in the previous year, marking an increase of approximately 165.5%[30]. - Transportation revenue reached RMB 61.709 billion, growing by 31.67% year-on-year, with passenger revenue accounting for 96.16% of total transportation revenue[98]. - International passenger revenue surged to RMB 15.397 billion, a remarkable increase of 184.18% year-on-year, driven by a 346.40% rise in passenger turnover[98]. Operating Costs - Operating expenses totaled RMB 67,359 million, up from RMB 54,703 million in the previous year, reflecting a 22.9% increase[3]. - Total operating costs for the first half of 2024 amounted to RMB 67.359 billion, reflecting a year-on-year increase of 23.14%[99]. - Aircraft fuel costs rose to RMB 23.292 billion, up 33.62% year-on-year, primarily due to increased flight hours and rising oil prices[99]. Cash Flow and Liquidity - The company’s operating cash flow for the six months ended June 30, 2024, was RMB 10.718 billion, a decrease from RMB 16.183 billion in the same period of 2023[13][14]. - The company had a net cash decrease of RMB 8.133 billion for the six months ended June 30, 2024, compared to an increase of RMB 2.471 billion in the same period of 2023[14]. - The company expects positive cash inflows from operating activities for at least the next 12 months, considering the recovery of flights and major operating costs[15]. - The company had unused bank credit facilities available, indicating sufficient liquidity for operations[15]. Assets and Liabilities - Non-current assets amounted to RMB 256,322 million as of June 30, 2024, slightly down from RMB 259,000 million at the end of 2023[5]. - As of June 30, 2024, the company's total equity was RMB 40.141 billion, down from RMB 43.463 billion as of December 31, 2023[11][12]. - The company’s total assets increased to RMB 117,394 million as of June 30, 2024, from RMB 111,028 million as of December 31, 2023[52]. - The company’s total liabilities exceeded total assets by approximately RMB 98.21 billion as of June 30, 2024[15]. - The debt-to-asset ratio increased to 85.40%, up by 0.69 percentage points from December 31, 2023[103]. Operational Efficiency - The company continues to focus on operational efficiency and cost management strategies to improve future performance[2]. - The group implemented cost control measures, resulting in a 10.44% decrease in operating costs per ton-kilometer in the first half of 2024[94]. - The overall passenger load factor improved by 9.44 percentage points to 81.21% from 71.77% year-over-year[85]. Strategic Initiatives - The company is focusing on digital transformation and has established a digital transformation leadership team to enhance operational efficiency[96]. - The company is committed to enhancing its service brand value through a focus on passenger experience and the implementation of 22 key tasks to meet diverse service needs[117]. - The company plans to increase its investment in Sichuan Airlines by RMB 1.2 billion through a combination of cash and non-cash assets[132]. Acquisitions and Investments - The group acquired the remaining 55% stake in Eastern Airlines Media Co., Ltd. for RMB 126 million, making it a wholly-owned subsidiary[17]. - The company plans to acquire a 55% stake in Eastern Airlines Media for approximately RMB 126.203 million, as approved in the board meeting on December 14, 2023[131]. - The company has completed the acquisition of 55% equity in Eastern Airlines Import and Export, which will no longer be a related party in future transactions[135]. Market Performance - The group’s operating performance improved steadily in the first half of 2024, with a significant reduction in losses year-on-year[93]. - Passenger traffic at Shanghai Pudong International Airport reached 2.34 million, a 31.30% increase compared to 2019[93]. - The group achieved a 90% recovery in passenger kilometers and revenue in the international market compared to 2019 levels[93]. Compliance and Governance - The board has implemented a governance improvement plan, with independent directors now exceeding 50% of the board composition[97]. - The company adopted the Listing Rules Appendix C3 as the code of conduct for directors and supervisors regarding securities trading, ensuring compliance with regulations[125]. - The Audit and Risk Management Committee reviewed the accounting principles and methods adopted by the group, with no dissenting opinions noted[126].
中国东方航空股份(00670) - 2024 - 中期业绩