Company Overview - The company operated an average fleet of 792 passenger aircraft with an average age of approximately 9 years[15]. - The company provides domestic and approved international, regional air passenger, cargo, mail, and baggage transportation services, along with extended services[15]. - The company has established core hubs in Shanghai and Beijing, as well as regional hubs in Xi'an and Kunming, to offer quality and convenient air transportation services[15]. - The company is authorized to engage in general aviation, aircraft maintenance, and related businesses, including e-commerce and air supermarket operations[15]. - The company emphasizes a streamlined and efficient modern fleet to enhance operational capabilities[15]. - The company’s stock is listed on both the Shanghai Stock Exchange (A-shares: 600115) and the Hong Kong Stock Exchange (H-shares: 00670)[18]. - The company’s registered address is located at 66 Airport Avenue, Pudong New District, Shanghai, with a postal code of 201202[17]. - The company’s mobile application is named "Eastern Airlines," providing customers with easy access to services[17]. - The company’s service hotline is +86 95530, ensuring customer support availability[17]. Financial Performance - 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[22]. - Operating expenses totaled RMB 67,359 million, up from RMB 54,703 million, reflecting a 23% increase year-over-year[22]. - 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[22]. - The company reported a basic and diluted loss per share of RMB 0.12, compared to RMB 0.28 for the same period in 2023[22]. - The company’s total comprehensive loss for the period was RMB 3,295 million, compared to RMB 6,640 million in the previous year[25]. - The company reported a net loss of RMB 2,768 million for the six months ended June 30, 2024, compared to a net loss of RMB 6,258 million for the same period in 2023, reflecting an improvement of approximately 55.8%[32]. - The company’s total equity attributable to equity holders decreased to RMB 39,869 million as of June 30, 2024, from RMB 42,954 million as of December 31, 2023, a decline of about 7.2%[30]. - The company’s long-term borrowings as of June 30, 2024, amounted to RMB 7,500 million, down from RMB 14,500 million as of June 30, 2023, indicating a reduction of approximately 48.8%[34]. - The group reported a net loss of RMB 3.1 billion for the six months ending June 30, 2024[41]. 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[27]. - Current liabilities increased to RMB 116,808 million from RMB 106,282 million, indicating a rise in short-term financial obligations[27]. - Cash and cash equivalents decreased significantly to RMB 3,713 million from RMB 11,858 million, highlighting liquidity challenges[27]. - As of June 30, 2024, current liabilities exceeded current assets by approximately RMB 9.821 billion[41]. - The company’s total liabilities decreased to RMB 2,154 million as of June 30, 2024, down from RMB 4,601 million as of December 31, 2023, reflecting a reduction of approximately 53.3%[82]. - The company’s long-term bank loans amounted to RMB 52.748 billion, a decrease from RMB 58.022 billion as of December 31, 2023, representing a reduction of approximately 9.5%[84]. - The company’s lease liabilities from Eastern Airlines Leasing decreased to RMB 25,483 million from RMB 34,776 million, representing a reduction of 26.8%[115]. Operational Highlights - The company plans to focus on expanding its market presence and enhancing operational efficiency in the upcoming quarters[22]. - The management indicated ongoing investments in new technologies and fleet upgrades to improve service quality and operational capacity[22]. - The group achieved a total of 1.283 million safe flight hours and 507,600 takeoffs and landings in the first half of 2024, representing year-on-year increases of 22.72% and 13.66% respectively[150]. - The group launched several new international routes, including Shanghai to Riyadh and Shanghai to Marseille, enhancing its international network[154]. - The group is actively promoting sustainable aviation fuel (SAF) and has launched a new on-demand meal service to enhance customer experience[161]. Market and Revenue Insights - Domestic transportation revenue reached RMB 44,961 million, up 7.5% from RMB 41,835 million year-on-year[60]. - International transportation revenue surged to RMB 17,407 million, a significant increase of 165.5% compared to RMB 6,559 million in the previous year[60]. - The airline business segment reported a pre-tax loss of RMB 3.155 billion, while the other business segment reported a profit of RMB 168 million[52]. - The group’s total customer contract revenue was RMB 64,199 million, with passenger transport contributing RMB 59,338 million[63]. - The group anticipates continued seasonal fluctuations, with higher demand expected in the second half of the year due to holiday peaks[61]. Related Party Transactions - The company has significant related party transactions with various entities, including joint ventures and subsidiaries, reflecting its extensive operational network[97]. - The procurement of meals and cabin supplies from Eastern Airlines Food amounted to RMB 1,545 million in 2024, up 21% from RMB 1,276 million in 2023[98]. - The revenue from exclusive transportation services related to cargo operations provided by Eastern Airlines Logistics was RMB 2,371 million, a significant rise of 59% from RMB 1,487 million in 2023[104]. Employee and Operational Metrics - The group employed 83,125 employees as of June 30, 2024, primarily based in China[185]. - The average annual interest rate for capitalized interest was 3.21%, slightly down from 3.40% in the previous year[67]. - The group’s sales and marketing expenses grew by 40.00% to RMB 1.876 billion, reflecting increased travel demand[172]. Future Outlook - The group expects net cash inflows from operating activities for at least the next 12 months, considering factors such as flight recovery and major operating costs[44]. - The company continues to be the global launch customer for the domestically produced C919 aircraft, with 6 units in operation as of June 30, 2024[142]. - The group is focused on enhancing operational efficiency and cost control amidst increasing competition and high fuel prices[149].
中国东方航空股份(00670) - 2024 - 中期财报