BEIJING AIRPORT(HK:00694)2019-04-24 12:45Financial Performance - In 2018, Beijing Capital International Airport achieved a passenger throughput of 100,983,290, marking a 5.4% increase year-over-year, and solidifying its position as the second busiest airport globally [24]. - The total revenue for 2018 was RMB 11,262,512,000, up from RMB 9,574,516,000 in 2017, representing an increase of 17.7% [18]. - The pre-tax profit for 2018 reached RMB 3,828,591,000, a 10.3% increase compared to RMB 3,470,294,000 in 2017 [18]. - The net profit attributable to equity holders was RMB 2,872,055,000, reflecting a 10.4% growth from RMB 2,600,461,000 in the previous year [18]. - The company's net profit after tax for 2018 was RMB 2,872,055,000, reflecting a growth of 10.4% year-over-year [26]. - The company's main business revenue for 2018 was RMB 11,262,512,000, an increase of 17.6% compared to the previous year [115]. - The aviation business revenue reached RMB 5,309,408,000, growing by 4.1% year-on-year, driven by increased passenger throughput and optimized route structure [118]. - Non-aviation business revenue totaled RMB 5,953,104,000, marking a significant increase of 33.1% from the previous year, attributed to new duty-free contracts and improved passenger purchasing power [119]. - The company's net profit for the fiscal year ending December 31, 2018, was RMB 2,872,055,000, representing a growth of 10.4% year-on-year [126]. - The proposed final dividend for 2018 is RMB 0.1623 per share, totaling approximately RMB 702,903,000, which is 40% of the company's after-tax profit for the year [127]. Operational Metrics - The number of aircraft movements in 2018 was 614,022, which is a 2.8% increase from the previous year [24]. - The cargo and mail throughput reached 2,074,005 tons, representing a 2.2% increase year-over-year [24]. - The total number of aircraft movements in 2018 was 614,022, a 2.8% increase from the previous year, with passenger throughput reaching 100,983,290, up by 5.4% [116]. - The international passenger throughput increased by 7.2% to 23,290,699, while domestic passenger throughput rose by 4.9% to 77,692,591 [117]. Revenue Segmentation - In 2018, the company achieved aviation revenue of RMB 5,309,408,000, a 4.1% increase year-over-year, and non-aviation revenue of RMB 5,953,104,000, a 33.1% increase, leading to total main business revenue of RMB 11,262,512,000, up 17.6% [26]. - The company's rental income from non-aviation services was RMB 1,300,476,000, an 8.6% increase compared to the previous year [119]. - The retail segment within non-aviation business saw a remarkable growth of 83.2%, generating RMB 2,774,187,000 in revenue [119]. - The company's advertising revenue was RMB 1,148,177,000, up 4.5% from the previous year, due to contract renewals and new advertising media resources [120]. - The company's parking service revenue was RMB 169,896,000, an increase of 4.6% year-on-year, driven by increased passenger throughput [120]. Expenses and Liabilities - Total operating expenses for 2018 were RMB 7,223,392,000, an increase of 21.0% compared to the previous year, with financial expenses rising by 193.1% due to RMB exchange rate fluctuations [26]. - Operating expenses for 2018 amounted to RMB 7,223,392,000, reflecting a 21.0% increase year-on-year due to rising management fees and maintenance costs [115]. - Total liabilities increased to RMB 11,284,918 thousand in 2018 from RMB 9,207,443 thousand in 2017, representing a rise of about 22.5% [196]. Strategic Initiatives - The company plans to continue expanding international routes and enhancing the competitiveness of its premium routes [25]. - The company aims to strengthen its hub competitiveness and expand routes along the "Belt and Road" initiative, focusing on maintaining leadership in European and American routes [31]. - The company plans to enhance infrastructure and service capabilities at Beijing Capital Airport, leveraging the operational pressure relief from the transition of airlines to Daxing Airport [35]. - The company aims to create new development momentum through structural adjustments and quality improvements to achieve high-quality, efficient, and satisfactory growth [30]. - The company anticipates a decline in revenue and profit levels due to the cancellation of the airport fee policy effective November 29, 2018, which was a significant component of aviation revenue [29]. Governance and Management - The company has maintained a governance structure that complies with the corporate governance code, with all board members attending the annual general meeting except for two due to work commitments [136]. - The board of directors consists of ten members, including three executive directors, three non-executive directors, and four independent non-executive directors, ensuring compliance with listing rules [139]. - The company has implemented a corporate pension plan, requiring both the company and employees to contribute monthly to the pension account [133]. - The company has provided appropriate liability insurance for directors and senior officers against third-party liabilities [91]. - The company has a commitment to transparency and accountability, as evidenced by the qualifications and experiences of its board members [104]. Risk Management - The company has established a robust risk management and internal control mechanism to avoid legal violations and protect its reputation [37]. - The company’s risk management and internal control system aims to ensure operational efficiency, asset security, and the reliability of operational information and financial reporting [168]. - The company updated its risk management manual in 2018, identifying new risk points and optimizing the risk management control system [173]. - The audit department conducted internal audits in key business areas and high-risk control segments during 2018 [173]. Shareholder Information - As of December 31, 2018, the total share capital of the company was 4,330,890,000 shares, with H shares amounting to 1,879,364,000 and domestic shares at 2,451,526,000 [81]. - Capital Airport Group Company held 2,451,526,000 domestic shares, representing 100% of the domestic shares and 56.61% of the total issued shares [82]. - The company’s major shareholders include entities with significant stakes, such as Chow Tai Fook Capital Limited, which is controlled by Cheng Yu Tung Family [84]. - The company has not entered into any significant contracts with its controlling shareholders or their subsidiaries during the year ended December 31, 2018 [90]. Audit and Compliance - The financial reports for the year ended December 31, 2018, were audited and deemed to accurately reflect the company's financial position and performance [184]. - The auditor's responsibility includes evaluating the appropriateness of accounting policies and the reasonableness of accounting estimates and disclosures made by management [192]. - The audit report was issued on March 27, 2019, by PwC, with the audit engagement partner being Wu Jun [193]. - The company has implemented internal controls to ensure the financial statements are free from material misstatement due to fraud or error [190].