CEA(SH:600115)2024-08-30 13:28Fleet and Operations - The company operates a modern fleet of 792 passenger aircraft with an average age of approximately 9 years[42]. - The company is focusing on modernizing its fleet, operating an average of 792 aircraft with an average age of approximately 9 years[58]. - The company operates nearly 800 modern aircraft, with an average fleet age of 9 years, including B787, A350, A320, and C919 models[62]. - The fleet size reached 792 aircraft, with the introduction of 12 new aircraft and the retirement of 2 aircraft in the first half of 2024[71]. - The company operates 6 C919 aircraft, marking its position as the global launch customer for this domestic model[71]. Financial Performance - The company's operating revenue for the first half of 2024 reached RMB 64,199 million, a 29.67% increase compared to RMB 49,511 million in the same period of 2023[50]. - The net profit attributable to shareholders was a loss of RMB 2,768 million, an improvement from a loss of RMB 6,258 million in the previous year[50]. - The net cash flow from operating activities decreased by 33.77% to RMB 10,718 million, down from RMB 16,183 million in the same period last year[50]. - The total assets as of June 30, 2024, were RMB 272,677 million, a decrease of 3.50% from RMB 282,574 million at the end of the previous year[50]. - The weighted average return on equity improved by 9.12 percentage points, reaching -14.60% compared to -23.72% in the previous year[52]. - The company's operating costs for the first half of 2024 were RMB 62,457 million, reflecting a year-on-year increase of 23.06%[100]. - Passenger revenue for the first half of 2024 was RMB 59,338 million, up 30.76% year-on-year, accounting for 94.25% of total airline transportation revenue[99]. Market Position and Growth - The company reported a total of 3.5 billion passenger trips in the first half of 2024, a 9.0% increase compared to the same period in 2019[58]. - The international passenger transport market has shown a recovery, with passenger transport volume reaching 81.7% of the levels seen in the same period of 2019[58]. - The company is the largest carrier in the China-Japan market and the largest Chinese carrier in the South Korea market, indicating strong market positions in high-revenue routes[61]. - The company has opened new international routes in 2024, including Shanghai-Riyadh and Shanghai-Marseille, and plans to launch additional routes such as Shanghai-Venice[61]. - The company's international market seat kilometer deployment and passenger revenue recovered to over 90% of 2019 levels, with some international markets exceeding 2019 flight volumes[78]. Customer Engagement and Services - The company has established a frequent flyer program with over 61.83 million members, enhancing customer loyalty and engagement[64]. - The company has received multiple awards for service quality and brand value, ranking 7th in Brand Finance's "2023 Global Airline Brand Value" list[63]. - The company is committed to improving service quality through the "Four Precision" service brand initiative, which includes 22 key tasks to meet diverse passenger needs[89]. - The company has a service hotline available at +86 95530 for customer inquiries[46]. Risk Management and Compliance - The company emphasizes the importance of risk management, highlighting potential operational risks in its management discussion and analysis section[9]. - The company has implemented a comprehensive risk management framework to enhance safety and operational efficiency, including a dual prevention mechanism for safety risk control[86]. - The company is committed to continuous improvement in corporate governance and compliance, with a focus on enhancing the quality of listed companies and optimizing asset quality[92]. - The company has not faced any non-operational fund occupation by controlling shareholders or their related parties[8]. Environmental and Social Responsibility - The company is committed to enhancing its carbon emission management capabilities and exploring sustainable aviation fuel applications[152]. - The company actively participates in carbon trading mechanisms, including the EU carbon trading and local pilot programs in Shanghai, to fulfill carbon emission obligations[152]. - The company has implemented an online monitoring system for environmental monitoring, ensuring real-time tracking of environmental conditions[163]. - The company has fully replaced 56 types of non-degradable plastic products on domestic flights and is expanding this initiative to international flights[168]. - The company invested a total of 28.97 million yuan in targeted poverty alleviation efforts in Yunnan Province, including 27.97 million yuan in non-repayable aid and 10.33 million yuan in repayable aid[174]. Strategic Initiatives and Future Plans - The company is focused on high-quality development and accelerating state-owned enterprise reform, with a goal of enhancing core competitiveness and implementing key reforms in marketing and service systems[83]. - The company plans to maintain its strategic objectives for the second half of 2024, aiming for steady growth in the civil aviation passenger market despite facing challenges such as localized capacity surplus[85]. - The company is enhancing its operational efficiency by optimizing its hub structure, focusing on Shanghai and Beijing as core hubs, and expanding international routes, particularly along the "Belt and Road" initiative[87]. - The company is advancing digital transformation by establishing a digital technology subsidiary and launching key projects such as smart maintenance and digital marketing[83]. Financial Management and Investments - The company has provided guarantees totaling approximately RMB 1.356 billion for SPV companies, which is within the authorized limit approved by the shareholders' meeting[195]. - The total amount of comprehensive credit granted to the controlling shareholder's subsidiary is RMB 14,981 million, with an actual occurrence of RMB 3,148 million[191]. - The company reported a loan amount of RMB 4,600 million from its controlling shareholder, with an interest rate of 2.60%[190]. - The company aims to focus resources on the development of passenger air transport business, enhancing operational capabilities and competitiveness[193].