中国飞机租赁(01848) - 2025 - 中期财报

Company Information Company Basic Information The company was incorporated in the Cayman Islands on December 21, 2012, listed on the HKEX on July 11, 2014, and has a board with audit, remuneration, and nomination committees - The company was incorporated in the Cayman Islands on December 21, 2012, and listed on the Hong Kong Stock Exchange on July 11, 2014[127] - The company's stock code is 01848[3] - The Board of Directors comprises non-executive directors (Mr. An Xuesong, Mr. Pan Jianyun), executive directors (Mr. Pan Hao Wen, Mr. Li Guohui), and independent non-executive directors (Mr. Cheuk Sing Chuen, Mr. Fan Chun Wah, Dr. Hung Man)[3][4] - The company has an Audit Committee, a Remuneration Committee, and a Nomination Committee[3] Major Banks and Financial Institutions The company maintains relationships with numerous major domestic and international banks and financial institutions, demonstrating diversified financing channels - The company has dealings with major banks and financial institutions including Agricultural Bank of China, Airbus Bank GmbH, Bank of Beijing, Bank of China, Bank of Communications, Bank of Jiangsu, Bank of Ningbo, Bank of Shanghai, Bank of Tianjin, BNP Paribas, Bohai Bank, China CITIC Bank, CITIC Bank International, China Construction Bank, China Development Bank, China Everbright Bank, China Minsheng Banking Corp, China Merchants Bank, China Zheshang Bank, Chong Hing Bank, Crédit Agricole Corporate and Investment Bank, Deutsche Bank, Fubon Bank (Hong Kong), Bank of East Asia, Export-Import Bank of China, Huaxia Bank, Industrial and Commercial Bank of China, Industrial Bank Co Ltd, Korea Development Bank, MUFG Bank, Ltd., Nanyang Commercial Bank, Natixis, Postal Savings Bank of China, Shanghai Pudong Development Bank, Shengjing Bank, Société Générale, and Standard Chartered Bank[5] Management Discussion and Analysis Interim Results Review In H1 2025, the global aviation industry grew, China's civil aviation passenger market expanded rapidly, and the company achieved a 6.7% increase in profit attributable to shareholders - In H1 2025, global air passenger traffic increased by 5.1% year-on-year, with load factor rising to 82.5%; China's civil aviation international passenger traffic increased by approximately 30%, with an overall load factor of 84.2%[7] - Supply chain pressures and capacity shortages continued to drive up aircraft lease rates and asset values, but exchange rate fluctuations posed short-term challenges[7] 2025 H1 Key Financial Data | Indicator | 2025 H1 (million HKD) | 2024 H1 (million HKD) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 2,405.2 | 2,528.1 | -4.9% | | Profit Attributable to Company Shareholders | 140.5 | 131.7 | +6.7% | | Earnings Per Share (HKD) | 0.189 | 0.177 | +6.8% | | Interim Dividend (HKD per share) | 0.12 | 0.12 | 0% | 1) Active Trading and Asset Portfolio Optimization%29%20Active%20Trading%20and%20Asset%20Portfolio%20Optimization) The company actively optimized its fleet in H1, delivering 10 new and 1 used aircraft, signing 21 aircraft sale and purchase agreements, and selling 19 aircraft and 2 engines - During the review period, the company delivered 10 new aircraft and 1 used aircraft, mostly new-generation Airbus fuel-efficient models[9] - New sale and purchase agreements/MOUs were signed for 21 aircraft, and 19 aircraft and 2 engines were sold, setting a new record for aircraft transactions in the same period[9] Fleet Size and Composition (as of June 30, 2025) | Indicator | Quantity | | :--- | :--- | | Total Fleet | 181 aircraft | | Owned Aircraft | 151 aircraft | | Managed Aircraft | 30 aircraft | | Owned Fleet Narrow-body Aircraft Ratio | 89% | | Owned Fleet Utilization Rate | 100% (excluding one Russia-related aircraft) | | Owned Fleet Average Age | 8.6 years | | Owned Fleet Average Remaining Lease Term | 5.7 years | | Order Book | 114 aircraft (88 Airbus, 26 COMAC) | 2) Accelerating Globalization and Focusing on Quality Clientele%29%20Accelerating%20Globalization%20and%20Focusing%20on%20Quality%20Clientele) The company expanded its global presence, leasing 7 new aircraft to overseas airlines and securing agreements with major carriers, with overseas clients exceeding 30% of the portfolio - In H1, 7 new aircraft were leased to overseas airlines and 3 to domestic airlines[11] - The company delivered its first three Airbus A321neo aircraft to United Airlines, signed its first new aircraft lease agreement with Thai Airways, and delivered 1 aircraft to Korean Air[11] Customer Structure and Lease Collection Rate (as of June 30, 2025) | Indicator | Data | | :--- | :--- | | Owned Fleet Leased to Chinese Airlines Ratio | 67% | | Overseas Customer Ratio | >30% | | Countries/Regions Served | 22 | | Number of Airlines Served | 41 | | Overall Lease Collection Rate | 102% | - All new aircraft scheduled for delivery by December 2026 or earlier have secured leases, with over half to be leased to overseas airlines, projecting a further increase in overseas client proportion[12] 3) Strengthening Financing Capabilities and Credit Rating%29%20Strengthening%20Financing%20Capabilities%20and%20Credit%20Rating) The company secured over HKD 10 billion in new and renewed financing in H1 through diversified channels, strategically re-entering the USD bond market and maintaining a AAA credit rating - During the review period, the company secured over HKD 10 billion in new and renewed financing facilities[13] Liquidity Position (as of June 30, 2025) | Indicator | Amount (million HKD) | | :--- | :--- | | Cash and Cash Equivalents | 4,884 | | Undrawn Borrowing Facilities | 11,228 | | Total Cash and Cash Equivalents and Undrawn Borrowing Facilities | 16,112 | - In USD financing, the company successfully increased its first warehouse aircraft financing facility issued in 2024 to USD 700 million, oversubscribed by 20 top global financial institutions[14] - Strategically re-entered the USD bond public market, enhancing flexibility in USD fund utilization[14] - In RMB financing, through its wholly-owned subsidiary CALC (Tianjin), the company successfully issued a 5-year RMB 1.5 billion corporate bond with a coupon rate of 2.38%, oversubscribed by 1.73 times[16] - As of June 30, 2025, RMB borrowings accounted for approximately 32% of total interest-bearing debt[16] - CALC (Tianjin) maintained the AAA highest credit rating with a stable outlook from two major domestic Chinese rating agencies[16] 4) Two Years of Safe Operations, Writing a New Chapter for Domestic Aircraft%29%20Two%20Years%20of%20Safe%20Operations%2C%20Writing%20a%20New%20Chapter%20for%20Domestic%20Aircraft) Associate company Transnusa Aviation Mandiri, a flagship for Chinese domestic aircraft overseas, received its fourth COMAC C909 aircraft and launched a new international route - Associate company Transnusa Aviation Mandiri has received its fourth COMAC C909 aircraft[17] - Successfully launched the "Manado, Indonesia – Shanghai Pudong" route, the second regular route to a Chinese first-tier city operated by the C909 fleet[17] - The Transnusa C909 fleet celebrated two years of safe operations, having flown to 20 regions in 4 countries and transported over 360,000 passengers[17] Outlook The company anticipates steady global aviation market growth in 2025, with record high industry revenue and passenger volumes, and will leverage market opportunities to expand its global client base - IATA forecasts record high industry total revenue and passenger volumes in 2025, reaching USD 979 billion and 4.99 billion passengers, respectively[18] - Supply chain challenges will persist, and global fleet shortages will continue to drive up aircraft market values and lease rates[18] - The company will capitalize on the market upcycle, expand its global quality clientele, and provide full aircraft lifecycle solutions[18] - Expected Fed interest rate cuts in H2 will reduce funding costs, stimulating global transaction market activity and bringing more quality transaction opportunities[18] - The company will continue the strong momentum in its trading business from H1, optimize its fleet assets, expand its managed fleet size, and flexibly utilize diversified financing channels while closely monitoring exchange rate market changes[18] Interim Condensed Consolidated Statement of Profit or Loss For the six months ended June 30, 2025, total revenue was HKD 2,405.2 million, a 4.9% decrease, while profit attributable to shareholders increased by 6.7% to HKD 140.5 million Key Data from Interim Condensed Consolidated Statement of Profit or Loss (for the six months ended June 30) | Indicator | 2025 (thousand HKD) | 2024 (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 2,405,225 | 2,528,096 | -4.9% | | Lease Income | 1,908,112 | 2,222,461 | -14.1% | | Net Income from Aircraft Trading and Aircraft Parts Trading | 294,679 | 25,427 | +1059.0% | | Other Income | 202,434 | 280,208 | -27.8% | | Interest Expense and Payments to Trust Schemes | (1,104,362) | (1,340,118) | -17.6% | | Depreciation and Impairment | (683,313) | (839,726) | -18.6% | | Reversal of Expected Credit Losses | 7,805 | 28,331 | -72.5% | | Other Operating Expenses | (267,377) | (236,601) | +13.0% | | Profit for the Period | 157,867 | 185,649 | -14.9% | | Profit Attributable to Company Shareholders | 140,526 | 131,749 | +6.7% | | Basic Earnings Per Share (HKD) | 0.189 | 0.177 | +6.8% | Interim Condensed Consolidated Statement of Financial Position As of June 30, 2025, total assets were HKD 58,612.8 million, a 0.6% increase, total liabilities were HKD 52,787.1 million, a 0.2% decrease, and total equity grew by 9.3% to HKD 5,825.7 million Key Data from Interim Condensed Consolidated Statement of Financial Position (as of June 30) | Indicator | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 58,612,796 | 58,239,688 | +0.6% | | Property, Plant and Equipment and Right-of-Use Assets | 29,072,332 | 28,860,008 | +0.7% | | Finance Lease Receivables – Net | 9,518,719 | 9,185,457 | +3.6% | | Assets Classified as Held for Sale | 4,330,242 | 5,555,238 | -22.1% | | Cash and Cash Equivalents | 4,884,186 | 3,778,318 | +29.3% | | Total Equity | 5,825,688 | 5,328,197 | +9.3% | | Total Liabilities | 52,787,108 | 52,911,491 | -0.2% | | Borrowings | 42,815,976 | 43,046,205 | -0.5% | | Bonds and Commercial Papers | 4,384,084 | 3,930,722 | +11.5% | 1. Performance In H1 2025, total revenue decreased by 4.9% to HKD 2,405.2 million due to a smaller fleet, but profit attributable to shareholders increased by 6.7% to HKD 140.5 million 2025 H1 Key Performance Indicators | Indicator | 2025 H1 (million HKD) | 2024 H1 (million HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 2,405.2 | 2,528.1 | -4.9% | | Profit for the Period | 157.9 | 185.6 | -14.9% | | Profit Attributable to Company Shareholders | 140.5 | 131.7 | +6.7% | | EBITDA | 1,976.1 | 2,481.3 | -20.3% | | Total Assets (period-end) | 58,612.8 | 58,239.7 (Dec 31, 2024) | +0.6% | | Total Liabilities (period-end) | 52,787.1 | 52,911.5 (Dec 31, 2024) | -0.2% | 1.1 Total Revenue Total revenue for H1 2025 was HKD 2,405.2 million, a 4.9% decrease, with lease income falling 14.1% due to a smaller fleet and lower average lease yields Lease Income and Yields (for the six months ended June 30) | Indicator | 2025 (million HKD) | 2024 (million HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 2,405.2 | 2,528.1 | -4.9% | | Total Lease Income | 1,908.1 | 2,222.5 | -14.1% | | Average Finance Lease Yield | 6.8% | 9.5% | -2.7 percentage points | | Average Operating Lease Yield | 9.3% | 10.2% | -0.9 percentage points | | Weighted Average Lease Yield | 9.3% | 10.1% | -0.8 percentage points | - The decrease in total lease income was primarily due to a reduction in fleet size from 172 aircraft as of June 30, 2024, to 151 aircraft as of June 30, 2025[23] - The decrease in average finance lease yield was mainly due to the reclassification of certain finance lease aircraft to operating leases[24] 1.2 Other Operating Income In H1 2025, total other operating income was HKD 497.1 million, with net income from aircraft trading significantly increasing to HKD 294.7 million, while other income decreased Other Operating Income Components (for the six months ended June 30) | Indicator | 2025 (million HKD) | 2024 (million HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Net Income from Aircraft Trading and Aircraft Parts Trading | 294.7 | 25.4 | +1059.0% | | Other Income | 202.4 | 280.2 | -27.8% | | Total | 497.1 | 305.6 | +62.7% | - The significant increase in net income from aircraft trading and aircraft parts trading was primarily due to the sale of 19 aircraft and aircraft parts trading, compared to the sale of 5 aircraft in the same period last year[26] Other Income Breakdown (for the six months ended June 30) | Indicator | 2025 (million HKD) | 2024 (million HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Government Grants | 66.6 | 113.1 | -41.1% | | Interest Income from Loans to Associates and Joint Ventures | 46.0 | 55.0 | -16.4% | | Bank Interest Income | 62.1 | 65.3 | -4.9% | | Asset Management Service Fees from CAG Group | 4.3 | 9.2 | -53.3% | | Others | 23.4 | 37.6 | -37.8% | | Total | 202.4 | 280.2 | -27.8% | 1.3 Expenses In H1 2025, interest expense and trust scheme payments decreased by 17.6%, and depreciation and impairment decreased by 18.6%, while other operating expenses increased due to higher engine lease costs Major Expense Changes (for the six months ended June 30) | Indicator | 2025 (million HKD) | 2024 (million HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Interest Expense and Payments to Trust Schemes | 1,104.4 | 1,340.1 | -17.6% | | Depreciation and Impairment | 683.3 | 839.7 | -18.6% | | Reversal of Expected Credit Losses | 7.8 | 28.3 | -72.5% | | Other Operating Expenses | 267.4 | 236.6 | +13.0% | - The decrease in interest expense was mainly due to reduced bank and other borrowings resulting from a smaller fleet size, and a decrease in the average USD Secured Overnight Financing Rate (SOFR) from 5.36% to 4.47%[29] - The decrease in depreciation and impairment was primarily due to a reduction in the number of operating lease aircraft subject to depreciation from 119 aircraft as of June 30, 2024, to 90 aircraft as of June 30, 2025[30] - The decrease in reversal of expected credit losses was mainly due to the repayment of certain loans by a joint venture and improved operating performance[31] - The increase in other operating expenses was primarily due to higher engine lease costs[33] 1.4 Other (Losses)/Gains, Net In H1 2025, net other losses were HKD 170.4 million, compared to net gains of HKD 162.0 million in the prior period, primarily due to foreign exchange losses Other (Losses)/Gains, Net Breakdown (for the six months ended June 30) | Indicator | 2025 (million HKD) | 2024 (million HKD) | | :--- | :--- | :--- | | Exchange (Losses)/Gains | (176.3) | 253.5 | | Fair Value Gains/(Losses) on Forward Currency Contracts | 16.1 | (78.2) | | Fair Value Gains on Financial Assets at FVTPL | 0.7 | 0.4 | | Fair Value Changes of Interest Rate Swaps | (6.3) | – | | Hedge Ineffectiveness | 0.6 | 0.2 | | Realized Losses on Currency Swaps | – | (13.9) | | Loss on Disposal of a Subsidiary | (5.2) | – | | Total | (170.4) | 162.0 | - The net exchange losses were mainly due to the depreciation of the USD against the RMB from approximately 7.3 as of December 31, 2024, to approximately 7.2 as of June 30, 2025[34] - A 5% appreciation/depreciation of the RMB against the USD would result in a decrease/increase in profit before tax of HKD 195.7 million[35] 1.5 Income Tax Expense Income tax expense for H1 2025 was HKD 30.5 million, a significant reduction from HKD 115.8 million in the prior period, primarily due to deferred tax adjustments Income Tax Expense (for the six months ended June 30) | Indicator | 2025 (million HKD) | 2024 (million HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Income Tax Expense | 30.5 | 115.8 | -73.7% | - The decrease in income tax expense was mainly due to the reversal of deferred tax liabilities from prior years and the recognition of deferred tax assets due to foreseeable future profits and their utilization[36] 2. Interim Condensed Consolidated Statement of Financial Position As of June 30, 2025, total assets were HKD 58,612.8 million, a 0.6% increase, and total liabilities were HKD 52,787.1 million, a 0.2% decrease, maintaining a stable financial structure Major Statement of Financial Position Item Changes (as of June 30) | Indicator | June 30, 2025 (million HKD) | December 31, 2024 (million HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 58,612.8 | 58,239.7 | +0.6% | | Property, Plant and Equipment and Right-of-Use Assets | 29,072.3 | 28,860.0 | +0.7% | | Finance Lease Receivables – Net | 9,518.7 | 9,185.5 | +3.6% | | Assets Classified as Held for Sale | 4,330.2 | 5,555.2 | -22.1% | | Cash and Cash Equivalents | 4,884.2 | 3,778.3 | +29.3% | | Total Liabilities | 52,787.1 | 52,911.5 | -0.2% | | Borrowings | 42,816.0 | 43,046.2 | -0.5% | | Bonds and Commercial Papers | 4,384.1 | 3,930.7 | +11.5% | 2.1 Assets As of June 30, 2025, total assets increased by 0.6% to HKD 58,612.8 million, with increases in PPE and cash, and a decrease in assets held for sale Asset Item Changes (as of June 30) | Indicator | June 30, 2025 (million HKD) | December 31, 2024 (million HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Property, Plant and Equipment and Right-of-Use Assets | 29,072.3 | 28,860.0 | +0.7% | | Finance Lease Receivables – Net | 9,518.7 | 9,185.5 | +3.6% | | Assets Classified as Held for Sale | 4,330.2 | 5,555.2 | -22.1% | | Aircraft Prepayments and Other Prepayments and Receivables | 7,772.3 | 7,855.3 | -1.1% | | Deferred Income Tax Assets | 94.8 | 36.1 | +162.6% | | Cash and Cash Equivalents | 4,884.2 | 3,778.3 | +29.3% | - The increase in property, plant and equipment and right-of-use assets was mainly due to the appreciation of the USD against the HKD and the RMB against the HKD[40] - The decrease in assets classified as held for sale was mainly due to the disposal of certain aircraft classified as held for sale, with the number decreasing from 19 to 12[41] - Operating lease receivables decreased by 11.9%, mainly due to the repayment of overdue rent by lessees, with the rent collection ratio increasing to 102.2%[48] 2.1.2 Aircraft Portfolio As of June 30, 2025, the company's owned fleet comprised 151 aircraft, a decrease from 159 at year-end 2024, primarily consisting of Airbus A320 CEO/NEO and Boeing B737 NG series Owned Aircraft Portfolio (by number of aircraft) | Aircraft Type | June 30, 2025 (aircraft) | December 31, 2024 (aircraft) | June 30, 2024 (aircraft) | | :--- | :--- | :--- | :--- | | Airbus A320 CEO Series | 67 | 71 | 80 | | Airbus A320 NEO Series | 50 | 51 | 54 | | Airbus A330 CEO Series | 12 | 12 | 13 | | Boeing B737 NG Series | 15 | 19 | 19 | | Boeing B737 MAX Series | 2 | 2 | 2 | | Boeing B787 | 1 | 1 | 1 | | COMAC C909 | 4 | 3 | 3 | | Total | 151 | 159 | 172 | 2.2 Liabilities As of June 30, 2025, total liabilities slightly decreased by 0.2% to HKD 52,787.1 million, with borrowings decreasing and bonds and commercial papers increasing Liability Item Changes (as of June 30) | Indicator | June 30, 2025 (million HKD) | December 31, 2024 (million HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Total Liabilities | 52,787.1 | 52,911.5 | -0.2% | | Borrowings | 42,816.0 | 43,046.2 | -0.5% | | Bonds and Commercial Papers | 4,384.1 | 3,930.7 | +11.5% | | Medium Term Notes | 1,643.2 | 1,599.7 | +2.7% | | Total Interest-bearing Debt | 48,843.3 | 48,576.6 | +0.5% | | Derivative Financial Liabilities | 6.9 | 233.7 | -97.0% | - The decrease in total borrowings was mainly due to a reduction of HKD 1,528.1 million in bank and other borrowings for aircraft purchase financing and a decrease of HKD 605.6 million in PDP financing, offset by an increase of HKD 2,205.7 million in other bank borrowings[51] - The increase in bonds and commercial papers was mainly due to the net effect of issuing RMB 1,500.0 million in bonds and repaying RMB 1,200.0 million in bonds that matured[52] 3. Capital Management The company's capital management policy aims to maintain a robust credit profile and sound capital ratios to support business growth and enhance shareholder value - The company's capital management policy aims to ensure the maintenance of a sound credit profile and healthy capital ratios to support its business and create maximum value for shareholders[55] - Funding sources include cash generated from operations, bank and other borrowings, bond, commercial paper, and medium-term note issuances, as well as a light-asset strategy (including aircraft disposals)[55] Capital Position Indicators (as of June 30) | Indicator | June 30, 2025 | December 31, 2024 | Change (percentage points/%) | | :--- | :--- | :--- | :--- | | Gearing Ratio | 83.3% | 83.4% | -0.1 percentage points | | Debt-to-Asset Ratio | 90.1% | 90.9% | -0.8 percentage points | | Interest-bearing Debt to Equity Ratio | 8.4:1 | 9.1:1 | -7.7% | 4. Human Resources As of June 30, 2025, the company had 175 employees, a decrease from the prior period, with total employee remuneration also declining Human Resources Data (as of June 30) | Indicator | June 30, 2025 | June 30, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Total Employees | 175 | 183 | -4.4% | | Total Employee Remuneration (million HKD) | 94.2 | 122.1 | -22.9% | - The company has established effective employee incentive schemes and share option schemes to recognize employee contributions and implement a merit-based reward system[57] 5. Contractual Obligations, Contingent Liabilities and Capital Commitments As of June 30, 2025, the company provided HKD 497.1 million in guarantees for associate and joint venture bank borrowings, with net guarantees of HKD 309.6 million, and had HKD 41.4 billion in capital commitments for aircraft purchases Contingent Liabilities and Capital Commitments (as of June 30) | Indicator | June 30, 2025 (million HKD) | December 31, 2024 (million HKD) | | :--- | :--- | :--- | | Guarantees for Bank Borrowings of Associates and Joint Ventures | 497.1 | 515.6 | | Net Guarantees Excluding Counter-guarantees | 309.6 | 319.6 | | Capital Commitments for Aircraft Purchases | 41,400 | 45,100 | | Number of Aircraft in Order Book | 114 aircraft | | Number of Aircraft Delivered During Review Period | 11 aircraft | | Number of Aircraft Sold During Review Period | 19 aircraft | - Capital commitments involve 114 aircraft, including 88 Airbus and 26 COMAC aircraft[60] Reconciliation of Non-GAAP Financial Measures The company believes that payments to trust schemes should not be included in interest expense for performance evaluation, and has ceased disclosing certain non-GAAP measures due to immaterial impact - The company believes that payments to trust schemes should not be included in interest expense to more accurately assess operating performance[63] Adjusted Interest Expense (for the six months ended June 30) | Indicator | 2025 (million HKD) | 2024 (million HKD) | | :--- | :--- | :--- | | Interest Expense | 1,104.4 | 1,340.1 | | Less: Payments to Trust Schemes | (123.1) | (133.5) | | Adjusted Interest Expense | 981.3 | 1,206.6 | - As payments related to trust schemes or asset-backed special purpose schemes had no material impact on the financial performance for H1 2025, the company no longer discloses related non-GAAP financial measures[64] General Information Disclosure of Interests As of June 30, 2025, directors, chief executives, major shareholders, and other individuals held interests in the company's shares and related shares Shareholdings of Directors and Chief Executives (as of June 30, 2025) | Director Name | Capacity | Total Interests (shares) | Approximate Percentage of Issued Shares | | :--- | :--- | :--- | :--- | | Pan Hao Wen | Interest of controlled corporation/Beneficial owner | 186,427,261 | 25.04% | | Cheuk Sing Chuen | Beneficial owner | 5,000 | 0.001% | Shareholdings of Major Shareholders and Other Persons (as of June 30, 2025) | Shareholder Name | Capacity | Total Interests (shares) | Approximate Percentage of Issued Shares | | :--- | :--- | :--- | :--- | | Everbright Aircraft Leasing Investment Holdings Limited | Beneficial owner | 244,065,373 | 32.78% | | China Everbright Limited | Interest of controlled corporation | 283,417,693 | 38.06% | | China Everbright Group Ltd | Interest of controlled corporation | 283,417,693 | 38.06% | | China Everbright Group Company Limited | Interest of controlled corporation | 283,417,693 | 38.06% | | Central Huijin Investment Ltd | Interest of controlled corporation | 283,417,693 | 38.06% | | Friedmann Pacific Asset Management Limited | Beneficial owner | 176,496,672 | 23.70% | | Capella Capital Limited | Interest of controlled corporation | 176,496,672 | 23.70% | | Pan Hao Wen | Interest of controlled corporation/Beneficial owner | 186,427,261 | 25.04% | | Wu Yiling | Interest of controlled corporation/Beneficial owner | 183,996,672 | 24.71% | Corporate Governance The company is committed to maintaining high standards of corporate governance and has complied with all code provisions of the Corporate Governance Code under Appendix C1 of the Listing Rules - The company has adopted the principles of the Corporate Governance Code set out in Appendix C1 of the Listing Rules as its corporate governance practices[74] - For the six months ended June 30, 2025, the company has complied with all code provisions contained in Part 2 of the Corporate Governance Code[75] - All directors confirmed their compliance with the required standards set out in the Model Code for securities transactions for the six months ended June 30, 2025[76] Board Committees The company has an Audit Committee, Remuneration Committee, and Nomination Committee, all chaired or primarily composed of independent non-executive directors to ensure independence and professionalism - The Audit Committee comprises three independent non-executive directors, with Mr. Fan Chun Wah as Chairman, and its primary responsibilities include reviewing financial reporting, internal audit, and risk management systems[77] - The Remuneration Committee comprises five members, with Dr. Hung Man as Chairman, and its primary responsibility is to monitor the remuneration policies for directors and senior management[80] - The Nomination Committee comprises three independent non-executive directors, with Mr. Cheuk Sing Chuen as Chairman, and its primary responsibilities include selecting and recommending director candidates, reviewing the Board structure, and assessing the independence of independent non-executive directors[81] Post-IPO Share Option Scheme The company's Post-IPO Share Option Scheme expired on July 10, 2024, with no options granted or exercised in H1 2025, and all unexercised options automatically lapsed on April 5, 2025 - The Post-IPO Share Option Scheme expired on July 10, 2024[83] - For the six months ended June 30, 2025, no share options were granted or exercised[83][85] - All unexercised share options granted under the Post-IPO Share Option Scheme automatically lapsed upon the expiry of their exercise period on April 5, 2025[89] Other Information This section discloses changes in director information since the last annual report, including resignations, appointments, and re-designations, as well as post-reporting period aircraft sales and dividend declaration - Ms. Wang Yun resigned as a non-executive director and member of several committees, effective March 18, 2025[95] - Mr. Pan Jianyun was appointed as a non-executive director and member of several committees, effective March 18, 2025, and was appointed as an executive director and vice president of China Everbright Limited on March 27, 2025[96] - Dr. Hung Man was appointed as an independent non-executive director and member of several committees, effective March 18, 2025, and was re-designated as Chairman of the Remuneration Committee on May 27, 2025[98] - On July 31, 2025, the company entered into agreements to sell eight aircraft (six owned, two managed), with completion expected by the end of October 2025[101] - The Board declared an interim dividend of HKD 0.12 per share for the six months ended June 30, 2025, payable on or about October 8, 2025[104] - The company repaid its RMB 1.2 billion non-public bond that matured in February 2025[106] Review Report on Interim Condensed Consolidated Financial Information Review Conclusion Deloitte Touche Tohmatsu has reviewed the interim condensed consolidated financial information of China Aircraft Leasing Group Holdings Limited for the six months ended June 30, 2025, and found no matters suggesting non-compliance with HKAS 34 - Deloitte Touche Tohmatsu has reviewed the company's interim condensed consolidated financial information[111] - The review was conducted in accordance with Hong Kong Standard on Review Engagements 2410, with a scope smaller than an audit, and no audit opinion is expressed[112] - The review concluded that no matters came to their attention that caused them to believe the interim financial information is not prepared, in all material respects, in accordance with Hong Kong Accounting Standard 34[113] - The comparative interim condensed consolidated statement of profit or loss, statement of comprehensive income, statement of changes in equity, and statement of cash flows for the six months ended June 30, 2024, and related notes were not reviewed in accordance with Hong Kong Standard on Review Engagements 2410[114] Interim Condensed Consolidated Statement of Financial Position Statement of Financial Position Overview As of June 30, 2025, total assets were HKD 58,612.8 million, total liabilities were HKD 52,787.1 million, and total equity was HKD 5,825.7 million, with PPE and borrowings being the largest categories Interim Condensed Consolidated Statement of Financial Position (as of June 30) | Indicator | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | | Assets | | | | Property, Plant and Equipment and Right-of-Use Assets | 29,072,332 | 28,860,008 | | Aircraft Prepayments and Other Prepayments and Receivables | 7,772,295 | 7,855,333 | | Finance Lease Receivables – Net | 9,518,719 | 9,185,457 | | Assets Classified as Held for Sale | 4,330,242 | 5,555,238 | | Cash and Cash Equivalents | 4,884,186 | 3,778,318 | | Total Assets | 58,612,796 | 58,239,688 | | Equity | | | | Equity Attributable to Company Shareholders | 4,181,529 | 4,229,457 | | Perpetual Capital Securities and Other Non-controlling Interests | 1,644,159 | 1,098,740 | | Total Equity | 5,825,688 | 5,328,197 | | Liabilities | | | | Borrowings | 42,815,976 | 43,046,205 | | Bonds and Commercial Papers | 4,384,084 | 3,930,722 | | Total Liabilities | 52,787,108 | 52,911,491 | Interim Condensed Consolidated Statement of Profit or Loss Statement of Profit or Loss Overview For the six months ended June 30, 2025, total revenue was HKD 2,405.2 million, profit for the period was HKD 157.9 million, and profit attributable to shareholders was HKD 140.5 million, with significant growth in net income from aircraft trading Interim Condensed Consolidated Statement of Profit or Loss (for the six months ended June 30) | Indicator | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Total Revenue | 2,405,225 | 2,528,096 | | Lease Income | 1,908,112 | 2,222,461 | | Net Income from Aircraft Trading and Aircraft Parts Trading | 294,679 | 25,427 | | Other Operating Income | 497,113 | 305,635 | | Interest Expense | (1,104,362) | (1,340,118) | | Depreciation and Impairment | (683,313) | (839,726) | | Profit for the Period | 157,867 | 185,649 | | Profit Attributable to Company Shareholders | 140,526 | 131,749 | | Basic Earnings Per Share (HKD) | 0.189 | 0.177 | Interim Condensed Consolidated Statement of Comprehensive Income Statement of Comprehensive Income Overview For the six months ended June 30, 2025, profit for the period was HKD 157.9 million, with total other comprehensive losses of HKD 56.7 million, resulting in total comprehensive income of HKD 101.2 million Interim Condensed Consolidated Statement of Comprehensive Income (for the six months ended June 30) | Indicator | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Profit for the Period | 157,867 | 185,649 | | Other Comprehensive (Losses)/Income for the Period: | | | | Cash Flow Hedges | (6,347) | (35,156) | | Currency Translation Differences | (48,070) | (43,131) | | Currency Translation Differences Attributable to Non-controlling Interests | (2,260) | 447 | | Total Other Comprehensive Losses for the Period, Net of Tax | (56,677) | (77,840) | | Total Comprehensive Income for the Period | 101,190 | 107,809 | | Total Comprehensive Income Attributable to Company Shareholders | 86,109 | 53,462 | | Holders of Perpetual Capital Securities and Other Non-controlling Interests | 15,081 | 54,347 | Interim Condensed Consolidated Statement of Changes in Equity Statement of Changes in Equity Overview As of June 30, 2025, total equity was HKD 5,825.7 million, with HKD 4,181.5 million attributable to company shareholders and HKD 1,644.2 million to perpetual capital securities and other non-controlling interests Interim Condensed Consolidated Statement of Changes in Equity (as of June 30) | Indicator | June 30, 2025 (thousand HKD) | January 1, 2024 (thousand HKD) | | :--- | :--- | :--- | | Total Equity Attributable to Company Shareholders | 4,181,529 | 4,329,540 | | Total Perpetual Capital Securities Holders and Other Non-controlling Interests | 1,644,159 | 810,422 | | Total Equity | 5,825,688 | 5,139,962 | | Profit for the Period (Attributable to Company Shareholders) | 140,526 | 131,749 | | Profit for the Period (Attributable to Perpetual Capital Securities and Non-controlling Interests) | 17,341 | 53,900 | | Issuance of Perpetual Capital Securities | 530,628 | – | | Dividends | (134,037) | (111,653) | Interim Condensed Consolidated Statement of Cash Flows Statement of Cash Flows Overview For the six months ended June 30, 2025, net cash from operating activities was HKD 1,012.0 million, net cash from investing activities was HKD 1,448.0 million, and net cash used in financing activities was HKD 1,407.1 million Interim Condensed Consolidated Statement of Cash Flows (for the six months ended June 30) | Indicator | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Net Cash Generated from Operating Activities | 1,012,038 | 1,544,558 | | Net Cash Generated from/(Used in) Investing Activities | 1,448,040 | (3,898,406) | | Net Cash (Used in)/Generated from Financing Activities | (1,407,113) | 3,207,880 | | Net Increase in Cash and Cash Equivalents | 1,052,965 | 854,032 | | Cash and Cash Equivalents at End of Period | 4,884,186 | 6,114,507 | - Net cash flow from investing activities changed from a net outflow in the prior period to a net inflow, mainly due to a significant increase in proceeds from aircraft disposals[124] - Net cash flow from financing activities changed from a net inflow in the prior period to a net outflow, mainly due to the repayment of borrowings and bonds and commercial papers[125] Notes to Interim Condensed Consolidated Financial Information 1. General Information of the Group China Aircraft Leasing Group Holdings Limited, incorporated in the Cayman Islands and listed in Hong Kong, primarily engages in aircraft leasing across mainland China and globally, with interim financial information presented in HKD - The company was incorporated in the Cayman Islands on December 21, 2012, and its shares have been listed on the Main Board of The Stock Exchange of Hong Kong Limited since July 11, 2014[127] - The company and its subsidiaries are principally engaged in aircraft leasing business, operating in mainland China and other countries or regions globally[127] - The interim financial information is presented in Hong Kong dollars[128] 2. Basis of Preparation The interim financial information is prepared in accordance with HKAS 34, and despite current liabilities exceeding current assets, management assesses sufficient working capital for the next 12 months - The interim financial information has been prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting"[129] - As of June 30, 2025, the company's current liabilities exceeded its current assets by HKD 7,697.2 million, and total capital commitments amounted to HKD 41,390.3 million[130] - The directors believe that, through internal resources, bank financing, aircraft project loans, debt instrument issuances, and aircraft disposal plans, the company has sufficient working capital to meet its requirements for the next 12 months, and thus the financial information is prepared on a going concern basis[137] - As of June 30, 2025, the company's cash and cash equivalents amounted to HKD 4,884.2 million[130] 3. Accounting Policies The accounting policies and methods of computation used in preparing this interim financial information are consistent with those followed in the 2024 annual consolidated financial statements, with no material impact from new standards - The accounting policies and methods of computation used in the preparation of this interim financial information are consistent with those followed in the preparation of the 2024 annual consolidated financial statements[139] - Hong Kong Accounting Standard 21 (Amendments) "Lack of Exchangeability" was first applied in the current interim period but had no material impact on the financial position and performance for the current and prior periods[140] 4. Estimates The preparation of interim financial information requires management to make judgments, estimates, and assumptions consistent with those applied in the 2024 annual consolidated financial statements, with actual results potentially differing from estimates - The preparation of interim financial information requires management to make judgments, estimates, and assumptions, which are consistent with those applied in the 2024 annual consolidated financial statements[141] 5. Financial Risk Management The company manages market risks (currency, interest rate), credit risk, and liquidity risk through hedging, counterparty credit assessment, portfolio diversification, and maintaining adequate liquidity - The company is exposed to market risk (including currency translation risk and cash flow and fair value interest rate risk), credit risk, and liquidity risk[142] - There have been no significant changes in the risk management department or any risk management policies since December 31, 2024[143] Capital Position Indicators (as of June 30) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Gearing Ratio | 83.3% | 83.4% | | Debt-to-Asset Ratio | 90.1% | 90.9% | | Interest-bearing Debt to Equity Ratio | 8.4:1 | 9.1:1 | Financial Risk Factors The company manages market risks (currency, interest rate), credit risk, and liquidity risk through hedging, counterparty credit assessment, portfolio diversification, and maintaining adequate liquidity - The company faces currency translation risk, primarily due to certain financial assets and liabilities being denominated in currencies other than the functional currency[145] - A 5% appreciation/depreciation of the RMB against the USD or HKD would have a potential impact on profit before income tax of a decrease/increase of HKD 195.7 million[147] - The company faces cash flow interest rate risk (floating rate borrowings) and fair value interest rate risk (fixed rate financial instruments)[147] - A 50 basis points change in interest rates would result in a potential decrease/increase in profit before income tax of approximately HKD 79.2 million[152] - The company is exposed to credit risk, primarily from aircraft leasing services, loans to associates and joint ventures, and other financial assets[154] - As of June 30, 2025, current liabilities exceeded current assets by HKD 7,697.2 million[165] Fair Value Estimation of Financial Instruments The company determines the fair value of financial instruments using active market quotes or valuation techniques like discounted cash flow analysis, primarily for interest rate swaps, forward currency contracts, and financial assets at FVTPL - The company uses quoted market prices in active markets or valuation techniques (such as discounted cash flow analysis) to determine the fair value of financial instruments[172] - Financial assets and liabilities measured at fair value are categorized into three levels, primarily using Level 2 (observable inputs) and Level 3 (unobservable inputs)[172] Financial Assets and Liabilities Measured at Fair Value (as of June 30) | Item | Level 1 (thousand HKD) | Level 2 (thousand HKD) | Level 3 (thousand HKD) | Total (thousand HKD) | | :--- | :--- | :--- | :--- | :--- | | Assets | | | | | | Interest Rate Swaps | – | 304 | – | 304 | | Forward Currency Contracts | – | 7,252 | – | 7,252 | | Financial Assets at FVTPL | 1,191 | – | 1,483,135 | 1,484,326 | | Liabilities | | | | | | Interest Rate Swaps | – | 3,076 | – | 3,076 | | Forward Currency Contracts | – | 3,869 | – | 3,869 | - Financial assets measured at Level 3 fair value primarily include shareholder loans to CAG Group and Feitian II (Tianjin) and exchangeable bonds issued by International Aircraft Recycling Group[174] 6. Property, Plant and Equipment and Right-of-Use Assets As of June 30, 2025, the net book value of property, plant and equipment and right-of-use assets was HKD 29,072.3 million, with additions of HKD 4,753.1 million and disposals of HKD 1,452.8 million during the period Property, Plant and Equipment and Right-of-Use Assets Movement (as of June 30) | Indicator | January 1, 2025 (thousand HKD) | Additions (thousand HKD) | Disposals (thousand HKD) | Depreciation and Impairment (thousand HKD) | June 30, 2025 (thousand HKD) | | :--- | :--- | :--- | :--- | :--- | :--- | | Net Book Value | 28,860,008 | 4,753,055 | (1,452,848) | (683,313) | 29,072,332 | - As of June 30, 2025, the net book value of aircraft was HKD 28,393.1 million[186] - As of June 30, 2025, operating lease aircraft with a net book value of HKD 21,357.6 million were pledged as collateral for bank and other borrowings for aircraft purchase financing and borrowings from trust schemes[186] - For the six months ended June 30, 2025, net aircraft impairment of HKD 9.96 million was recognized[186] 7. Investments in and Loans to Associates and Joint Ventures As of June 30, 2025, the company's net investments in and loans to associates and joint ventures were HKD 655.8 million, with cumulative expected credit loss provisions of HKD 209.6 million Investments in and Loans to Associates and Joint Ventures (as of June 30) | Indicator | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | | Carrying Value (net of share of results) | 865,328 | 707,352 | | Cumulative Expected Credit Loss Provision for Loans to Associates and Joint Ventures | (209,575) | (215,655) | | Total | 655,753 | 491,697 | - For the six months ended June 30, 2025, a net reversal of expected credit loss provision of HKD 6.8 million was recognized[187] - Key associates and joint ventures include International Aircraft Recycling (investment holding), CAG (aircraft leasing), CALC Global (aircraft maintenance), Airfly I/II (Tianjin) (aircraft leasing), Feitian II (Tianjin) (aircraft leasing), PT Transnusa Aviation Mandiri (TAM) (commercial air transport services), and PT Linkaviasi Asia Indonesia (LAI) (commercial air transport services)[189] 8. Finance Lease Receivables – Net As of June 30, 2025, net finance lease receivables were HKD 9,518.7 million, with the top five airline clients accounting for 67% and cumulative expected credit loss provisions of HKD 22.8 million Finance Lease Receivables – Net (as of June 30) | Indicator | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | | Total Lease Receivables | 5,619,429 | 5,532,076 | | Net Investment in Leases | 9,541,476 | 9,203,965 | | Less: Cumulative Expected Credit Loss Provision | (22,757) | (18,508) | | Finance Lease Receivables – Net | 9,518,719 | 9,185,457 | - For the six months ended June 30, 2025, a net expected credit loss of HKD 4.0 million was recognized[200] - The top five airline clients accounted for 67% of net finance lease receivables[201] 9. Financial Assets at Fair Value Through Profit or Loss As of June 30, 2025, total financial assets at fair value through profit or loss were HKD 1,484.3 million, primarily comprising shareholder loans to CAG Group and Feitian II (Tianjin), and exchangeable bonds issued by International Aircraft Recycling Financial Assets at Fair Value Through Profit or Loss (as of June 30) | Indicator | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | | Shareholder Loans to CAG Group | 582,383 | 576,136 | | Shareholder Loans to Feitian II (Tianjin) | 46,990 | 45,945 | | Exchangeable Bonds | 850,000 | 850,000 | | Others | 4,953 | 3,995 | | Total | 1,484,326 | 1,476,076 | 10. Prepayments and Other Assets As of June 30, 2025, total prepayments and other assets were HKD 727.0 million, with aircraft prepayments and related receivables at HKD 7,772.3 million, and net operating lease receivables at HKD 182.5 million Prepayments and Other Assets (as of June 30) | Indicator | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | | PDP and Other Prepayments and Receivables Related to Aircraft Purchases | 7,772,295 | 7,855,333 | | Operating Lease Receivables | 332,114 | 376,860 | | Less: Cumulative Expected Credit Loss Provision | (149,598) | (152,951) | | Net Prepayments and Other Assets | 726,988 | 683,835 | - PDPs are made according to the payment schedule in aircraft purchase agreements, with aircraft to be delivered in phases by the end of 2028[205] - For the six months ended June 30, 2025, a net reversal of expected credit loss provision for operating lease receivables of HKD 4.974 million was recognized[208] 11. Assets Classified as Held for Sale As of June 30, 2025, the carrying value of assets classified as held for sale was HKD 4,330.2 million, a decrease from year-end 2024, primarily comprising aircraft with signed MOUs for sale Assets Classified as Held for Sale (as of June 30) | Indicator | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | | Carrying Value of Assets Classified as Held for Sale | 4,330,242 | 5,555,238 | | Carrying Value of Borrowings Related to Assets Held for Sale | 2,054,960 | 2,707,840 | - The fair value of assets classified as held for sale is determined based on aircraft market prices, falling within Level 2 of the fair value hierarchy[211] - Borrowings related to assets held for sale will be repaid upon the disposal of the aircraft[211] 12. Share Capital As of June 30, 2025, the company had 744,648,542 issued and fully paid ordinary shares with a par value of HKD 0.1 per share, totaling HKD 74.5 million, consistent with January 1, 2025 Issued and Fully Paid Ordinary Shares (as of June 30) | Indicator | June 30, 2025 | January 1, 2024 | | :--- | :--- | :--- | | Par Value per Share | HKD 0.1 | HKD 0.1 | | Number of Shares | 744,648,542 | 744,355,352 | | Share Capital (thousand HKD) | 74,465 | 74,436 | 13. Reserves As of June 30, 2025, total reserves were HKD 1,927.3 million, a decrease from January 1, 2025, primarily due to cash flow hedging losses and currency translation differences, with all unexercised Post-IPO Share Option Scheme options having lapsed Reserves Movement (as of June 30) | Indicator | January 1, 2025 (thousand HKD) | Cash Flow Hedges (thousand HKD) | Currency Translation Differences (thousand HKD) | Lapsed Share Options (thousand HKD) | June 30, 2025 (thousand HKD) | | :--- | :--- | :--- | :--- | :--- | :--- | | Total | 1,986,750 | (6,347) | (48,070) | (5,034) | 1,927,299 | Unexercised Share Options Movement (as of June 30) | Indicator | January 1, 2025 | Lapsed | June 30, 2025 | | :--- | :--- | :--- | :--- | | Number of Share Options | 16,781,071 | (16,781,071) | – | - All unexercised share options granted under the Post-IPO Share Option Scheme automatically lapsed upon the expiry of their exercise period on April 5, 2025[89] 14. Perpetual Capital Securities and Other Non-controlling Interests As of June 30, 2025, total perpetual capital securities and other non-controlling interests significantly increased to HKD 1,644.2 million, driven by the issuance of RMB 500 million in perpetual capital securities by a subsidiary Perpetual Capital Securities and Other Non-controlling Interests (as of June 30) | Indicator | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | | Perpetual Capital Securities | 1,659,376 | 1,111,899 | | Other Non-controlling Interests in Ordinary Shares | (15,217) | (13,159) | | Total | 1,644,159 | 1,098,740 | - On April 28, 2025, a subsidiary of the company further issued RMB 500 million in perpetual capital securities with a fixed interest rate of 2.48%, generating net proceeds of HKD 537.2 million[219] - Perpetual capital securities have no maturity date, and their distribution payments can be deferred at the company's discretion, thus classified as equity instruments[219] 15. Deferred Income Tax (Assets)/Liabilities As of June 30, 2025, net deferred income tax liabilities were HKD 1,126.1 million, a decrease from January 1, 2025, primarily due to deferred income tax charged to profit or loss Deferred Income Tax (Assets)/Liabilities Movement (as of June 30) | Indicator | January 1, 2025 (thousand HKD) | Charged to Profit or Loss (thousand HKD) | Currency Translation Differences (thousand HKD) | June 30, 2025 (thousand HKD) | | :--- | :--- | :--- | :--- | :--- | | Total | 1,267,694 | (155,449) | 13,856 | 1,126,101 | - As of June 30, 2025, deferred income tax liabilities expected to be settled within 12 months amounted to HKD 189.6 million[222] 16. Borrowings As of June 30, 2025, total borrowings were HKD 42,816.0 million, a slight decrease of 0.5% from year-end 2024, with HKD 11,228.4 million in undrawn borrowing facilities Borrowings Composition (as of June 30) | Indicator | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | | Bank and Other Borrowings for Aircraft Purchase Financing | 20,008,945 | 21,537,088 | | PDP Financing | 5,688,534 | 6,294,118 | | Other Bank Borrowings | 13,227,541 | 11,021,832 | | Borrowings from Trust Schemes | 3,681,372 | 3,989,918 | | Other Borrowings | 209,584 | 203,249 | | Total Borrowings | 42,815,976 | 43,046,205 | - Bank and other borrowings for aircraft purchase financing are partially secured by related aircraft, shares in subsidiaries, guarantees, and pledged deposits[225] - PDP financing and other bank borrowings are mostly unsecured and guaranteed by the company or certain of its subsidiaries[225] Undrawn Borrowing Facilities (as of June 30) | Indicator | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | | Due within one year | 3,569,739 | 2,142,453 | | Due after one year | 7,658,621 | 7,482,137 | | Total | 11,228,360 | 9,624,590 | 17. Medium Term Notes As of June 30, 2025, the total carrying value of medium-term notes was HKD 1,643.2 million, a slight increase from year-end 2024, including RMB 300 million and RMB 1.2 billion notes issued in 2024 Medium Term Notes (as of June 30) | Indicator | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | | Total Carrying Value | 1,643,222 | 1,599,726 | - The company issued RMB 300 million (3-year, 2.75%) and RMB 1.2 billion (5-year, 3.3%) medium-term notes in April 2024[228] 18. Bonds and Commercial Papers As of June 30, 2025, the total carrying value of bonds and commercial papers was HKD 4,384.1 million, an increase from year-end 2024, reflecting the issuance of RMB 1.5 billion corporate bonds and repayment of RMB 1.2 billion private bonds Bonds and Commercial Papers (as of June 30) | Indicator | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | | Total Carrying Value | 4,384,084 | 3,930,722 | - The company issued RMB 1.5 billion (5-year, 2.38%) corporate bonds in February 2025[231] - The company repaid RMB 1.2 billion in three-year private bonds that matured in 2025[231] 19. Derivative Financial Instruments As of June 30, 2025, net derivative financial assets were HKD 7.6 million and net derivative financial liabilities were HKD 6.9 million, with fair value gains on forward currency contracts and fair value changes in interest rate swaps Derivative Financial Instruments (as of June 30) | Indicator | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | | Derivative Financial Assets | 7,556 | 13,381 | | Derivative Financial Liabilities | 6,945 | 233,712 | Fair Value Changes of Derivative Financial Instruments (for the six months ended June 30) | Indicator | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Recognized in Other Comprehensive Income (Interest Rate Swaps) | (6,347) | (35,156) | | Fair Value Gains/(Losses) on Forward Currency Contracts | 16,113 | (78,167) | | Fair Value Changes of Interest Rate Swaps | (6,316) | – | | Hedge Ineffectiveness | 576 | 240 | | Realized Losses on Currency Swaps | – | (13,932) | - The company has two outstanding forward currency contracts with a notional amount of RMB 600 million to mitigate RMB exchange rate risk[236] - The company has 11 outstanding interest rate swap contracts to convert floating interest rates to fixed rates, managing unmatched interest rate exposure[236] 20. Other Liabilities and Accruals As of June 30, 2025, total other liabilities and accruals were HKD 2,313.5 million, a slight decrease from year-end 2024, primarily including deposits, professional fees, and dividends payable Other Liabilities and Accruals (as of June 30) | Indicator | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | | Deposits and Funds Received for Leases and Aircraft Projects | 1,623,753 | 1,715,060 | | Consultants and Professional Fees Payable | 81,923 | 80,852 | | VAT and Other Taxes | 154,559 | 186,091 | | Operating Lease Rentals Received in Advance | 180,628 | 212,290 | | Dividends Payable to Ordinary Shareholders | 135,458 | – | | Total | 2,313,452 | 2,371,674 | 21. Lease Income and Segment Information For the six months ended June 30, 2025, total lease income was HKD 1,908.1 million, with the top five airline clients contributing 50% and other clients contributing the remaining 50% Lease Income by Customer Category (for the six months ended June 30) | Customer Category | 2025 (thousand HKD) | Share (%) | 2024 (thousand HKD) | Share (%) | | :--- | :--- | :--- | :--- | :--- | | Airline – A | 455,439 | 24% | 596,768 | 27% | | Airline – B | 209,716 | 11% | 296,774 | 13% | | Airline – C | 118,094 | 6% | 145,591 | 7% | | Airline – D | 90,411 | 5% | 90,720 | 4% | | Airline – E | 84,871 | 4% | 22,751 | 1% | | Others | 949,581 | 50% | 1,069,857 | 48% | | Total | 1,908,112 | 100% | 2,222,461 | 100% | 22. Net Income from Aircraft Trading and Aircraft Parts Trading For the six months ended June 30, 2025, net income from aircraft trading and aircraft parts trading significantly increased to HKD 294.7 million, primarily due to the sale of 19 aircraft and two engines Net Income from Aircraft Trading and Aircraft Parts Trading (for the six months ended June 30) | Indicator | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Aircraft Trading | 295,217 | 25,256 | | Aircraft Parts Trading | (538) | 171 | | Total | 294,679 | 25,427 | - Net gains from aircraft trading include the sale of 19 aircraft and two engines to third parties, compared to the sale of 5 aircraft in the same period last year[242] 23. Other Income For the six months ended June 30, 2025, total other income was HKD 202.4 million, a decrease from the prior period, mainly due to reduced government grants Other Income Breakdown (for the six months ended June 30) | Indicator | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Government Grants | 66,624 | 113,125 | | Interest Income from Loans to Associates and Joint Ventures | 46,012 | 54,986 | | Bank Interest Income | 62,102 | 65,277 | | Asset Management Service Fees from CAG Group | 4,282 | 9,244 | | Others | 23,414 | 37,576 | | Total | 202,434 | 280,208 | - Government grants refer to subsidies and grants received from the mainland Chinese government as preferential support for the development of the aircraft leasing industry[244] 24. Interest Expense For the six months ended June 30, 2025, total interest expense was HKD 1,104.4 million, a decrease from the prior period, primarily due to lower interest expense on borrowings and reduced capitalized interest on qualifying assets Interest Expense (for the six months ended June 30) | Indicator | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Interest Expense on Borrowings | 1,201,989 | 1,462,725 | | Settlement of Interest Rate Swaps Designated a