CEA(600115)2024-09-27 13:08Financial Performance - The group reported a mid-term financial performance for the six months ending June 30, 2024, with results approved by the board on August 30, 2024[6]. - The mid-term financial results do not necessarily predict the group's full-year performance, indicating potential volatility in future earnings[6]. - 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[11]. - Operating expenses totaled RMB 67,359 million, up 23% from RMB 54,703 million in the previous year[11]. - The net loss for the period was RMB 3,099 million, a significant improvement from a net loss of RMB 6,584 million in the same period last year[12]. - The operating profit for the period was RMB 40 million, compared to an operating loss of RMB 2,567 million in the previous year[11]. - The company reported a financial expense of RMB 3,088 million, down 34% from RMB 4,673 million in the previous year[11]. - The basic and diluted loss per share attributable to equity holders of the company was RMB 0.12, improved from RMB 0.28 in the same period last year[11]. - Total comprehensive loss for the period was RMB 3,295 million, compared to RMB 6,640 million in the previous year[12]. - The company recognized other comprehensive losses of RMB 196 million for the period, compared to RMB 56 million in the previous year[12]. - The company’s total comprehensive loss for the period was RMB 3,295 million, compared to RMB 6,640 million in the previous year, indicating a reduction in losses[15]. - The company reported a net cash flow from operating activities of RMB 10,718 million for the six months ended June 30, 2024, a decrease of 34.1% compared to RMB 16,183 million in the same period of 2023[16]. - The company incurred a net loss of RMB 3.1 billion for the six months ended June 30, 2024, with current liabilities exceeding current assets by approximately RMB 9.82 billion[19]. - The company’s net loss for the six months ended June 30, 2024, was RMB 2,768 million, compared to a net loss of RMB 6,258 million for the same period in 2023, indicating an improvement in financial performance[15]. Operational Efficiency - The company is committed to maintaining high operational efficiency, as indicated by its focus on transport capacity and revenue metrics[3]. - The group emphasizes efficient operations centered around key hubs in Shanghai, Beijing, Xi'an, and Kunming, enhancing service delivery to global travelers[7]. - The company plans to continue expanding its market presence and investing in new technologies to enhance operational efficiency[10]. - The management indicated a focus on cost control measures to improve profitability in the upcoming quarters[10]. - The company is focused on enhancing asset quality and financial stability through strategic initiatives aligned with its core aviation business[136]. - The company is enhancing its information security measures to protect customer data and maintain operational integrity, including appointing a Data Protection Officer[126]. - The company is committed to improving operational safety through rigorous training and risk management systems[131]. Fleet and Capacity - The company operates a modern fleet of 792 passenger aircraft with an average age of approximately 9 years, focusing on providing quality air transport services[7]. - The company introduced 12 new aircraft and retired 2, maintaining a young fleet structure[82]. - The company operates 6 domestically produced C919 aircraft, enhancing its operational experience with large domestic aircraft[82]. - The total fleet size reached 792 aircraft, with an average fleet age of 9 years[83]. - The company plans to introduce a total of 36 aircraft in the second half of 2024, with 54 in 2025, and 56 in 2026, while retiring 13, 35, and 27 aircraft respectively during the same periods[137]. Revenue Streams - The group is actively involved in e-commerce and related services, diversifying its revenue streams beyond traditional air transport[7]. - The airline business segment reported revenue of RMB 64,044 million, while the other business segment reported revenue of RMB 737 million, leading to a total revenue of RMB 64,199 million[25]. - Operating income from passenger transport was RMB 59,338 million, while cargo and mail transport generated RMB 2,371 million[35]. - Other operating income increased to RMB 3,200 million, up from RMB 2,625 million in the previous year[37]. - The company’s cargo revenue reached RMB 2.371 billion in the first half of 2024, reflecting a year-on-year growth of 59.45%, with bellyhold cargo turnover increasing by 88.83%[88]. Market Expansion - The company is part of the SkyTeam Alliance, which enhances its global connectivity and service offerings[5]. - The company has launched new international routes in 2024, including Shanghai-Riyadh and Beijing Daxing-Bangkok, to expand its network[116]. - The company expanded its domestic routes to 36 and launched several new international routes, including Shanghai to Riyadh and Shanghai to Marseille, enhancing its international flight recovery rate[88]. - The company is focused on international market expansion and potential mergers and acquisitions, while implementing strict risk management protocols[127]. Customer Engagement - The company has a comprehensive passenger loyalty program, "Eastern Miles," aimed at enhancing customer retention and engagement[5]. - The company has over 61.83 million members in its "Eastern Miles" frequent flyer program, indicating a strong customer base[118]. Financial Position - As of June 30, 2024, total assets amounted to RMB 256,322 million, a slight decrease from RMB 259,000 million as of December 31, 2023, representing a decline of approximately 1%[13]. - Total equity decreased to RMB 40,141 million from RMB 43,565 million, a decline of approximately 8%[14]. - The company reported cash and cash equivalents of RMB 3,713 million, down from RMB 11,858 million, a decrease of about 69%[13]. - The company’s total borrowings amounted to RMB 117,394 million as of June 30, 2024, an increase from RMB 111,028 million at the end of 2023[49]. - The company’s total interest-bearing debt amounted to RMB 1889.30 billion, with a fixed interest rate debt ratio of 54.92% and a floating interest rate debt ratio of 45.08%[102]. Governance and Compliance - The board has implemented a governance improvement plan, with independent directors making up over 50% of the board, enhancing corporate governance quality[93]. - The company is committed to improving corporate governance and investor relations through performance briefings and investor communication events[136]. - The audit and risk management committee has reviewed the accounting principles and methods adopted by the company without any objections[150]. Related Party Transactions - The company has various related party transactions with entities controlled by China Eastern Airlines Group, including joint ventures and associates[57]. - The company reported related party transactions totaling RMB 1,545 million for procurement of food and cabin supplies, an increase of 21% from RMB 1,276 million in the previous year[59]. - The company acquired 55% equity of Eastern Airlines Import and Export from China Eastern Airlines Group, which will no longer result in related party transactions for foreign trade import and export services in the future[160]. - The company also acquired 55% equity of Eastern Airlines Media from China Eastern Airlines Group, eliminating future related party transactions for advertising agency services[160]. Sustainability Initiatives - The group is committed to sustainable practices, promoting the use of sustainable aviation fuel (SAF) and launching green travel initiatives[90]. - The company is actively exploring sustainable aviation fuel applications and carbon reduction models to enhance its environmental governance[130]. - The company is committed to sustainable development, investing in energy-saving and noise-reduction technologies to comply with environmental regulations[130].