CEA(600115)2024-04-25 12:09Fleet and Route Network - The company operates a modern fleet of nearly 800 aircraft, with the largest and most technologically advanced internet-enabled wide-body fleet in China[7] - The company's route network covers 1,050 destinations in 166 countries and regions globally[7] - The company operated a total of 782 aircraft as of December 31, 2023, with 7 net additions during the year, including 3 C919 series aircraft[22][23] - The company's fleet remains young, with an average age of 8.7 years, including 106 wide-body aircraft with an average age of 7.8 years and 659 narrow-body aircraft with an average age of 9 years[23] - The company introduced 22 new aircraft and retired 15 in 2023, continuing to optimize its fleet structure[22] - The company plans to introduce 56 aircraft and retire 15 in 2024, with a total of 143 aircraft to be introduced and 77 retired from 2024 to 2026[26] - The company signed an additional order for 100 C919 aircraft, becoming the largest global user of C919[28] Financial Performance - Revenue for 2023 reached RMB 113.741 billion, a significant increase from RMB 46.305 billion in 2022[15][18] - Net loss attributable to equity holders of the company in 2023 was RMB 8.168 billion, compared to RMB 37.356 billion in 2022[15][18] - Total assets decreased slightly to RMB 282.491 billion in 2023 from RMB 286.189 billion in 2022[18] - Shareholders' equity increased to RMB 41.221 billion in 2023 from RMB 30.436 billion in 2022[18] - Earnings per share (EPS) loss improved to RMB 0.37 in 2023 from RMB 1.98 in 2022[18] - Operating loss for 2023 was RMB 121.089 billion, compared to RMB 81.506 billion in 2022[15] - Cash and cash equivalents decreased to RMB 11.741 billion in 2023 from RMB 18.015 billion in 2022[15] - Net current liabilities increased to RMB 80.601 billion in 2023 from RMB 78.503 billion in 2022[15] - Long-term borrowings, including current portion, decreased to RMB 71.410 billion in 2023 from RMB 72.718 billion in 2022[15] - Lease liabilities, including current portion, decreased to RMB 84.175 billion in 2023 from RMB 97.007 billion in 2022[15] - The company's total assets amounted to RMB 2,847.33 billion, a decrease of 1.28% compared to the end of 2022[67] - The company's debt-to-asset ratio was 84.74%, a decrease of 3.93 percentage points from the end of 2022[67] - The company's net loss attributable to equity holders was RMB 8.168 billion, a significant improvement from the RMB 37.356 billion loss in 2022[67] - The company's interest-bearing liabilities decreased by 11.18% to RMB 1,950.88 billion, with RMB-denominated liabilities accounting for 82.13%[69][71] - The company's lease liabilities decreased by 14.08% to RMB 84.547 billion, with RMB-denominated liabilities accounting for 82.13%[68][69] - The company's long-term and short-term bank loans and bonds decreased by 8.82% to RMB 1,105.41 billion, with RMB-denominated liabilities accounting for 82.13%[69][70] - The company's fixed-rate interest-bearing debt accounted for 50.28% of total interest-bearing debt, while floating-rate debt accounted for 49.72%[71] - The company's USD-denominated interest-bearing debt accounted for 15.86% of total interest-bearing debt, a slight increase from 14.95% in 2022[71] - The company's financial expenses decreased by 20.96% to RMB 6.982 billion, primarily due to reduced exchange losses[67] - The company's other operating income and gains increased by 50.26% to RMB 5.429 billion, driven by increased passenger traffic and expanded capacity[67] - The nominal amount of outstanding interest rate swap contracts held by the company as of December 31, 2023, was approximately 327 million as of December 31, 2022[72] - The company's foreign currency interest-bearing debt totaled RMB 34.874 billion as of December 31, 2023, with USD-denominated debt accounting for 88.73% of the total foreign currency interest-bearing debt[72] - The company's capital expenditure for aircraft and engines over the next three years is expected to be approximately RMB 63.215 billion, with RMB 21.202 billion in 2024, RMB 22.347 billion in 2025, and RMB 19.666 billion in 2026[72] - The company's overseas assets amounted to RMB 833 million as of December 31, 2023, accounting for 0.29% of total assets[72] - The company invested RMB 600 million in Sichuan Airlines, acquiring a 10% stake, and RMB 430 million in Dongfang Import & Export, acquiring a 100% stake[73] - The company's total financial assets measured at fair value through profit or loss amounted to RMB 1,170.97 million as of December 31, 2023[75] - The company's investment in China Civil Aviation Information Network had an initial investment cost of RMB 18.50 million and a year-end book value of RMB 259.48 million[76] - The company's subsidiary, Eastern Airlines Jiangsu, reported a net loss of RMB 522 million and an asset-liability ratio of 118.89%[76] - The company's subsidiary, Shanghai Airlines, reported a net loss of RMB 2.045 billion and an asset-liability ratio of 118.59%[76] - Eastern Jiangsu achieved operating revenue of RMB 9.437 billion, a year-on-year increase of 130.33%, with a net loss of RMB 522 million, significantly reduced from RMB 3.041 billion in 2022[77] - Eastern Wuhan's operating revenue reached RMB 4.016 billion, up 180.78% year-on-year, with a net loss of RMB 102 million, down from RMB 1.285 billion in 2022[78] - Eastern Yunnan reported operating revenue of RMB 9.851 billion, a 113.05% increase year-on-year, with a net loss of RMB 594 million, reduced from RMB 2.417 billion in 2022[79] - Shanghai Airlines achieved operating revenue of RMB 10.337 billion, up 175.32% year-on-year, with a net loss of RMB 2.045 billion, down from RMB 4.469 billion in 2022[80] - China United Airlines achieved operating revenue of RMB 7.111 billion, a 241.47% increase year-on-year, with a net profit of RMB 1 million, compared to a net loss of RMB 1.964 billion in 2022[81] Passenger and Cargo Traffic - Passenger traffic (RPK) increased by 197.45% to 182,299.38 million, with domestic routes up 153.99% to 149,930.96 million and international routes surging 1,328.57% to 28,846.07 million[19] - Available seat kilometers (ASK) grew 154.61% to 244,960.45 million, with domestic routes up 116.71% to 199,818.68 million and international routes skyrocketing 1,027.44% to 40,338.30 million[19] - Cargo and mail traffic (RFTK) decreased by 4.01% to 2,504.35 million, with domestic routes up 68.94% to 886.40 million but international routes down 22.88% to 1,600.16 million[20] - Available ton kilometers (ATK) increased by 96.73% to 29,525.58 million, with domestic routes up 128.81% to 22,091.31 million and international routes growing 29.28% to 6,813.62 million[21] - Passenger load factor improved by 10.72 percentage points to 74.42%, with domestic routes at 75.03% and international routes at 71.51%[19] - Cargo and mail load factor decreased by 7.61 percentage points to 33.48%, with domestic routes at 21.58% and international routes at 50.27%[20] - Revenue ton kilometers (RTK) increased by 130.81% to 18,522.83 million, with domestic routes up 144.86% to 14,063.03 million and international routes growing 83.59% to 4,133.89 million[21] - Passenger transport volume for A320 series reached 55.329 million, with a load factor of 76.39% and a daily utilization rate of 8.12 hours[25] - C919 series achieved a load factor of 77.03% and a daily utilization rate of 5.03 hours, with a passenger transport volume of 81,700[25] - The company completed a total transport turnover of 185.2 billion ton-kilometers and transported 120 million passengers in 2023, with a revenue of RMB 113.74 billion, a year-on-year increase of 145.6%[35] - Revenue and passenger volume recovered to RMB 100 billion and 100 million passengers respectively, with a significant year-on-year reduction in losses[37] - Domestic, international, and regional seat kilometers deployed recovered to 116.4%, 43.8%, and 75.0% of 2019 levels respectively[37] - Domestic, international, and regional passenger traffic recovered to 97.5%, 38.8%, and 67.7% of 2019 levels respectively[37] - Ancillary product revenue totaled RMB 6.86 billion in 2023, an 80.4% increase compared to 2022[37] - Completed 160 quality and efficiency improvement projects, cumulatively increasing efficiency by approximately RMB 1.31 billion[37] - Flight punctuality rate reached 87.4% for the year[37] - Launched over 20 new international routes along the "Belt and Road" initiative, including Shanghai Pudong-Istanbul and Shanghai Pudong-Cairo[37] - Air-rail intermodal products covered 46 cities and 710 railway stations, achieving two-way intermodal connections between 1,240 rail segments and air segments[37] - C919 maiden flight publicity accumulated over 1 billion views[37] - Ranked 7th in Brand Finance's "2023 Global Airline Brand Value Top 50"[37] - The company successfully issued perpetual bonds at a fair interest rate, reducing the asset-liability ratio by nearly 6 percentage points[38] - The company completed the replacement or substitution of plastic materials for 53 types of aircraft supplies, and deployed SAF (Sustainable Aviation Fuel) on more than 20 Airbus aircraft for delivery flights[38] - The company operated over 3,500 flights involving targeted poverty alleviation, transporting more than 320,000 passengers and contributing over RMB 570 million to local GDP[38] - The company has a fleet of 782 passenger aircraft with an average age of approximately 8.7 years, focusing on core hubs in Shanghai and Beijing, and regional hubs in Xi'an and Kunming[46] - The company plans to enhance its digital transformation, leveraging big data to improve flight scheduling, revenue management, and marketing intelligence[43] - The company aims to strengthen its risk management, particularly in areas such as safety operations, overseas operations, fuel price fluctuations, and exchange rate risks[44] - The company is committed to improving service quality, optimizing irregular flight handling, and enhancing member benefits[42] - The company will focus on increasing operational efficiency, including cost reduction, asset optimization, and expanding the coverage of financial integration[41] - The company emphasizes the importance of safety, aiming to improve the operational scale and quality of domestically produced aircraft[40] - The company's future outlook includes cautious optimism about the international and domestic economic environment, with plans to adapt to market uncertainties[39] - Global air passenger traffic in 2023 increased by 36.9% YoY, reaching 94.1% of 2019 levels, with domestic traffic up 30.4% and international traffic up 41.6%[47] - China's civil aviation passenger traffic in 2023 reached 620 million, a 146.1% YoY increase, recovering to 93.9% of 2019 levels, while international flights recovered to 62.8% of 2019 levels[47] - The IMF forecasts global economic growth of 3.1% in 2024, with China remaining the largest engine of global economic growth[48] - IATA predicts that the Asia-Pacific aviation industry is expected to achieve profitability by the end of 2024[48] - The company aims to become a world-class smart aviation travel service integrator, focusing on safety, efficiency, service quality, and economic benefits[49] - The company holds a dominant market share at Shanghai Hongqiao and Pudong International Airports, benefiting from the Yangtze River Delta integration strategy[50] - The company's route network covers 1,050 destinations in 166 countries and regions, with "Eastern Miles" frequent flyer program offering access to over 750 airport lounges globally[51] - The company was ranked 7th in Brand Finance's "2023 Global Airline Brand Value Top 50" and among the top 50 in WPP's "BrandZ Most Valuable Chinese Brands"[52] - The company's "Eastern Miles" frequent flyer membership has exceeded 57 million members[53] - The company operates a modern fleet of nearly 800 aircraft, with an average fleet age of 8.7 years as of the end of 2023[53] - The company has established a comprehensive strategic partnership with Delta and Air France-KLM, forming a golden triangle connecting Asia, North America, and Europe[53] - The company is actively promoting cooperation with JAL, Korean Air, and Saudi Airlines in areas such as joint marketing and code-sharing[53] - The company has strengthened its competitiveness in the Shanghai hub through a "equity + business" strategic cooperation model with Juneyao Air[53] - The company has established an "aviation + internet" cooperation model with Ctrip, enhancing collaboration in product promotion and route promotion[53] - The company has achieved one-stop booking for "air tickets + train tickets" in cooperation with China State Railway Group[53] - The company is actively deploying and applying sustainable aviation fuel (SAF) and participating in the SkyTeam "Sustainable Flight Challenge"[55] - The company has been publishing high-quality social responsibility and ESG reports annually since 2009[55] - The company is closely monitoring the impact of macroeconomic conditions, international trade relations, geopolitical situations, and public health events, and flexibly adjusting capacity deployment and market sales[54] - Jet fuel price fluctuations pose a significant risk, with a 5% change in average jet fuel price potentially increasing or decreasing the company's fuel costs by approximately RMB 2.055 billion[56] - The company has a substantial amount of foreign currency debt, primarily in USD, and a fluctuation in the USD to RMB exchange rate could significantly impact profits. For example, a change in the exchange rate could affect the profit by RMB 297 million[56] - The company has optimized its debt structure by issuing short-term financing bills, corporate bonds, and RMB loans to mitigate exchange rate risks[57] - Interest rate changes could affect the company's financial expenses. A 25 basis point change in interest rates could impact the profit by RMB 231 million[58][59] - The company is actively managing its floating rate debt through derivative transactions and timing the issuance of short-term financing bills and corporate bonds to reduce RMB financing costs[59] - The company faces data and information security risks, which could impact operations and lead to data breaches. It has implemented measures such as appointing a Data Protection Officer and enhancing data protection systems[60] - The company is expanding into international markets and engaging in investment and M&A activities, which carry risks related to decision-making, management, and competition. It is strengthening risk control systems and conducting due diligence to mitigate these risks[61] - The company is exposed to supply chain risks, particularly related to aircraft, engines, and critical technical services. It regularly assesses supplier performance and monitors market prices and policy changes to manage these risks[62] - The company's passenger revenue in 2023 was RMB 104.576 billion, a year-on-year increase of 198.75%, accounting for 96.64% of the company's transportation revenue[66] - Domestic route passenger revenue in 2023 was RMB 83.986 billion, a year-on-year increase of 174.72%, accounting for 80.31% of passenger revenue[66] - International route passenger revenue in 2023 was RMB 17.825 billion, a year-on-year increase of 325.93%, accounting for 17.05% of passenger revenue[66] - Regional route passenger revenue in 2023 was RMB 2.765 billion, a year-on-year increase of 1,014.92%, accounting for 2.64% of passenger revenue[66] - The company's total operating costs in 2023 were RMB 121.089 billion, a year-on-year increase of 48.56%[66] - Aircraft fuel costs in 2023 were RMB 41.102 billion, a year-on-year increase of 84.89%, mainly due to a 104.23% increase in refueling volume[66] - Aircraft landing fees in 2023 were RMB 14.558 billion, a year-on-year increase of 132.82%, mainly due to increased flight operations[66] - Depreciation and amortization in 2023 were RMB 25.023 billion, a year-on-year increase of 14.73%, mainly due to increased transportation turnover[66] - Wages, salaries, and benefits in 2023 were RMB 23.613 billion, a year-on-year increase of 15.27%, mainly due to increased transportation turnover and flight crew hourly fees[66] - Aircraft maintenance costs in 2023 were RMB 4.542 billion, a year-on-year increase of 35.34%, mainly due to increased transportation turnover and daily maintenance costs[66] Corporate Governance and Leadership - The company's Board Secretary is Wang Jian, and the Securities Affairs Representative is Yang Hui[12] - The company's contact email for investor relations is ir@ceair.com[12] -