2023-08-30 16:00Financial Performance - Air China reported no profit distribution or capital reserve transfer to share capital for the first half of 2023[4]. - The company's operating revenue for the reporting period was CNY 59,613,193, an increase of 148.88% compared to the same period last year[15]. - The net loss attributable to shareholders was CNY (3,450,728), a significant improvement from a net loss of CNY (19,434,906) in the previous year[15]. - The net cash flow from operating activities was CNY 20,031,524, compared to a negative cash flow of CNY (6,650,156) in the previous year[15]. - The total assets at the end of the reporting period were CNY 344,514,953, reflecting a 16.78% increase from the previous year[15]. - The company's net assets attributable to shareholders increased by 48.01% to CNY 34,942,843 compared to CNY 23,609,134 at the end of the previous year[15]. - The average return on equity (ROE) was (9.42)%, an improvement of 27.84 percentage points from (37.26)% in the previous year[15]. - The company achieved a total of 1.1515 million safe flight hours during the reporting period, successfully completing major transportation tasks[23]. - The company reported a total nitrogen oxide emission of 0.593117 tons from gas boiler exhaust at the Beijing base, which is below the annual permitted emission of 3.88193 tons[74]. - The company reported a net loss of 54,914,639 with total assets of 136,302,742, indicating a significant financial challenge[114]. Market Position and Strategy - The company emphasizes its vision of being a "globally leading airline" and adheres to the mission of "safety first, customer service, steady development"[9]. - Air China is focused on expanding its market presence and enhancing service quality to achieve sustainable growth[9]. - The company plans to focus on building a dual-hub strategy with the Beijing Capital International Airport and Chengdu Tianfu International Airport as key hubs[19]. - The company has become the largest airline in Asia by fleet size after acquiring control of Shandong Airlines Group and Shandong Airlines, further solidifying its position among the top global airlines[21]. - The company is actively pursuing market expansion and strategic investments in the aviation sector[106]. Operational Highlights - The aviation transportation industry in China has shown a strong recovery, with passenger transport volume reaching 2.84 billion, recovering to 88.2% of the 2019 level[20]. - The average daily passenger flights in the domestic market increased by 5.14% compared to the same period in 2019[20]. - The company has significantly increased domestic market capacity and is expanding international route operations to enhance competitiveness[24]. - The company has optimized its frequent flyer program to enhance customer loyalty and increase revenue from premium cabin services[25]. - The company achieved a 7.3-fold increase in inter-airline joint operations, totaling 106,000 segments in the first half of the year[26]. Environmental Initiatives - The company has implemented a carbon peak action plan and developed a carbon emission monitoring platform, contributing to green development initiatives[26]. - The company has established self-monitoring plans for environmental emissions, with data uploaded to relevant environmental monitoring systems[77]. - The company has not faced any administrative penalties related to environmental issues during the reporting period[78]. - The company continues to focus on integrating low-carbon concepts into its operations, aiming to enhance resource utilization efficiency and reduce carbon emissions[79]. - During the reporting period, the company saved a total of 10,483 tons of aviation fuel, resulting in a reduction of 33,021 tons of CO2 emissions[80]. Corporate Governance - Air China maintains a commitment to corporate governance and transparency, with all board members present at meetings[4]. - The company has no significant risks or non-operational fund occupation by controlling shareholders[5]. - The company held three shareholder meetings in 2023, with all resolutions passed, including the election of new board members and approval of financial reports[69][70]. - The company has appointed new executives, including Wang Mingyuan as President and Vice Chairman, and has made several changes in the supervisory board[72]. Employee and Community Engagement - The company has a total of 46,385 employees, with subsidiaries employing an additional 55,008 staff as of the end of the reporting period[73]. - The company is committed to a performance-based compensation policy, enhancing employee motivation and aligning pay with job value and individual performance[73]. - The company invested CNY 25 million in targeted assistance to Zhaoping County, Guangxi, and CNY 15 million to Sunite Right Banner, Inner Mongolia in 2023[82]. - A total of 19 assistance projects were planned, covering various sectors including specialty industries, basic education, basic medical care, and rural governance[82]. Financial Instruments and Accounting - The company applies the equity method for accounting investments in joint ventures, which are classified as joint operations and joint ventures[158]. - The company recognizes goodwill in business combinations when the acquisition cost exceeds the fair value of identifiable net assets acquired[156]. - Financial assets are classified into categories for subsequent measurement, including amortized cost and fair value through profit or loss[164]. - The company uses the effective interest method to calculate the amortized cost of financial assets and liabilities, considering all contractual terms[165]. - The group measures expected credit losses for financial assets based on the entire expected credit loss over the asset's lifetime[169].