Financial Performance - The company achieved operating revenue of RMB 136.774 billion, with a pre-tax profit of RMB 9.977 billion and a net profit attributable to shareholders of RMB 7.351 billion, representing a year-on-year increase of 1.47%[19] - In 2018, the company achieved operating revenue of RMB 136.77 billion, an increase from RMB 121.36 billion in 2017, representing a growth of approximately 12.1%[28] - The company reported a net profit attributable to shareholders of RMB 7.35 billion in 2018, slightly up from RMB 7.24 billion in 2017, indicating a growth of about 1.5%[28] - The company’s EBITDA for 2018 was RMB 28.85 billion, up from RMB 25.35 billion in 2017, marking a growth of around 9.8%[28] - Operating revenue for the period was RMB 136.774 billion, up RMB 15.412 billion or 12.70% year-on-year[89] - Passenger revenue reached RMB 120.430 billion, increasing by RMB 13.686 billion or 12.82% year-on-year[94] - Cargo and mail transportation revenue was RMB 11.406 billion, up RMB 1.151 billion or 11.22% year-on-year[99] - Operating expenses rose to RMB 126.537 billion, an increase of 12.71% from RMB 112.270 billion in 2017[101] Transportation and Operations - The total transportation turnover reached 27.518 billion ton-kilometers, an increase of 8.40% year-on-year, while the number of passengers transported was 110 million, up 8.02% year-on-year[19] - The total passenger turnover reached 220.528 billion revenue passenger kilometers, representing a year-on-year growth of 9.67%, while the passenger load factor was 80.60%, a decrease of 0.54 percentage points[46] - The company achieved a flight safety record of 2.2452 million hours, a year-on-year increase of 6.14%[19] - The company expanded its hub network, launching 155 new domestic and international routes, bringing the total number of passenger routes to 754, including 138 international routes[47] - The company plans to complete 2.306 million hours of transportation flights and a total turnover of 26.74 billion ton-kilometers in 2019[82] Fleet and Capacity - The fleet size at the end of 2018 was 669 aircraft, with an average age of 6.62 years[42] - The company introduced 50 new aircraft in 2018, including 6 A350 and 1 B787-9[42] - Available seat kilometers increased by 10.41% to 273,600.29 million in 2018 from 247,815.03 million in 2017[37] - Revenue passenger kilometers rose by 9.67% to 220,528.34 million in 2018 compared to 2017[37] - The company plans to introduce 72 new aircraft in 2019, with 39 from the Airbus series and 33 from the Boeing series[44] Customer Engagement and Services - The registered users on the mobile platform increased by 29.6% year-on-year, with sales revenue growing by 50%[19] - The company’s "Phoenix Miles" membership reached over 56 million, with revenue contribution from frequent flyers increasing by 11.6% year-on-year[19] - The company is committed to enhancing service quality and customer satisfaction, with significant improvements noted in passenger experience[19] - The company’s additional service product sales increased by 45.9% year-on-year, with significant growth in upgrade products, paid seat selection, and prepaid baggage revenue[50] Strategic Initiatives and Partnerships - The company expanded its international network by launching 56 new international routes in 19 countries along the Belt and Road Initiative, connecting 28 cities[19] - The company signed its first joint venture agreement with Air Canada in June 2018, aiming to optimize flight schedules and enhance customer offerings on China-North America routes[24] - The company’s international cooperation expanded, with 36 partners providing 14,087 code-share flights weekly, enhancing its global service reach to 1,317 destinations in 193 countries[47] Financial Stability and Investments - The asset-liability ratio decreased to 58.75%, indicating improved financial stability and risk management[18] - The group’s total liabilities amounted to RMB 143.159 billion, an increase of 1.69% year-on-year, with current liabilities making up 50.67%[113] - Future capital expenditure plans for aircraft and related equipment total RMB 46.291 billion over the next three years, with RMB 24.107 billion planned for 2019[117] - The company completed the transfer of 51% equity in China National Aviation Holding to Capital Holdings, marking a strategic divestment[26] Governance and Compliance - The board of directors consists of eight members, with four being independent non-executive directors, demonstrating active participation in company affairs[128] - The company emphasizes compliance with legal and regulatory requirements, with ongoing reviews of governance policies and practices[130] - The company has established a risk management and internal control system, which is reviewed at least annually for effectiveness[150] - The company has established compliance procedures to ensure adherence to applicable laws and regulations, with no significant violations reported during the reporting period[194] Shareholder Relations and Dividends - The company proposes to distribute a cash dividend of approximately RMB 1.5 billion, which is 35% of the distributable profit for the year, translating to RMB 1.0328 per 10 shares[173] - The company emphasizes a consistent and stable profit distribution policy, prioritizing cash dividends, with a minimum of 15% of distributable profits allocated for cash dividends[172] - The company will communicate with shareholders, especially minority shareholders, to gather their opinions and concerns regarding profit distribution[172] Market Outlook and Challenges - The competitive landscape in the global aviation market is evolving, with increased competition from both domestic and international carriers[85] - The competitive landscape is intensifying with the emergence of low-cost airlines and regional carriers, which may impact the company's future revenue levels[123] - The Chinese aviation market is expected to continue growing, driven by business travel and tourism, despite economic pressures[84]
中国国航(00753) - 2018 - 年度财报