Financial Performance - For the first half of 2022, the total revenue of TravelSky Technology Limited was RMB 2,272.0 million, a decrease of RMB 566.3 million or 20.0% compared to RMB 2,838.3 million in the same period of 2021[21]. - The pre-tax profit for the first half of 2022 was RMB 462.7 million, an increase of approximately 41.2% from RMB 327.6 million in the first half of 2021[20]. - The net profit attributable to shareholders for the first half of 2022 was RMB 443.0 million, up approximately 61.0% from RMB 275.2 million in the same period of 2021[20]. - Total operating revenue for the six months ended June 30, 2022, was RMB 2,271,990,839.04, a decrease of 20% from RMB 2,838,332,752.63 in the same period last year[77]. - Net profit for the period was RMB 455,820,238.46, representing an increase of 54.5% compared to RMB 294,904,534.90 in the previous year[78]. - Basic and diluted earnings per share were both RMB 0.15, up from RMB 0.09 in the same period last year, indicating a growth of 66.7%[79]. - The total comprehensive income for the period was RMB 457,921,316.41, an increase of 57.3% from RMB 291,167,477.35 in the same period last year[79]. Revenue Breakdown - The revenue from aviation information technology services accounted for 35.3% of total revenue, decreasing from 52.0% in the first half of 2021, with a drop from RMB 1,476.5 million to RMB 801.9 million, a decrease of 45.7%[21]. - The revenue from system integration services increased by 26.3% to RMB 600.3 million, up from RMB 475.2 million in the first half of 2021, accounting for 26.4% of total revenue[21]. - Data network revenue rose by 15.9% to RMB 232.3 million, compared to RMB 200.4 million in the first half of 2021, representing 10.2% of total revenue[21]. - Other income accounted for 21.9% of total revenue in the first half of 2022, down from 18.4% in the same period of 2021, with a decrease of 4.9% from RMB 522.0 million to RMB 496.4 million[22]. Operating Costs and Expenses - Total operating costs in the first half of 2022 were RMB 1,823.4 million, a decrease of RMB 337.5 million or 15.6% compared to RMB 2,160.9 million in the first half of 2021[24]. - Research and development expenses decreased to RMB 216,765,622.61 from RMB 293,664,655.80, a reduction of approximately 26.2%[77]. - The total operating costs, including taxes and additional expenses, were RMB 1,016,840,005.69, down from RMB 1,095,444,756.81, a decrease of about 7.2%[81]. - The company experienced a significant reduction in sales expenses, which fell to RMB 6,574,055.39 from RMB 10,393,367.81, a decrease of approximately 36.0%[81]. Cash Flow and Liquidity - Cash and cash equivalents as of June 30, 2022, amounted to RMB 5,555.9 million, with 94.6% in RMB, 4.5% in USD, and 0.4% in TWD[25]. - Operating cash inflow from operating activities was RMB 496.7 million in the first half of 2022[25]. - Cash flow from operating activities generated a net amount of RMB 496,670,492.62, down from RMB 998,910,751.45, reflecting a decline of approximately 50.3%[84]. - The total cash and cash equivalents at the end of the period were 5,555,889,791.20 RMB, compared to 4,426,355,098.00 RMB in the previous period, showing an increase in liquidity[85]. - The net increase in cash and cash equivalents was -783,712,750.32 RMB, contrasting with an increase of 61,419,616.31 RMB in the previous period, highlighting a challenging cash flow environment[85]. Investments and Assets - The fair value of the investment in China Merchants Renhe Life Insurance was approximately RMB 850.6 million as of June 30, 2022, accounting for 3.4% of the group's total assets[33]. - The investment in China Merchants Renhe Life Insurance reported a loss of RMB 247.5 million in the first half of 2022 due to initial investments in branch establishment and channel expansion[34]. - The company's total assets amounted to RMB 24,904,255,877.79, an increase from RMB 24,111,138,979.19 at the end of the previous year, representing a growth of approximately 3.29%[67]. - The company's current assets totaled RMB 16,551,289,296.26, up from RMB 15,638,632,722.94, indicating an increase of about 5.83% year-over-year[66]. - The total liabilities increased to RMB 5,378,032,427.21 from RMB 4,881,056,042.58, which is an increase of approximately 10.18%[69]. Shareholder Information - China Eastern Airlines Group holds approximately 9.17% of the company's total shares, equating to 182,743,500 domestic shares[46]. - Citigroup Inc. controls 58,284,676 H shares, representing 6.24% of the H share class and 1.99% of the total share capital[48]. - JPMorgan Chase & Co. holds 56,064,901 H shares, accounting for 6.01% of the H share class and 1.91% of the total share capital[49]. - BlackRock, Inc. possesses 47,536,609 H shares, which is 5.10% of the H share class and 1.62% of the total share capital[51]. - The total issued shares of the company as of June 30, 2022, are 2,926,209,589[52]. Corporate Governance - The company has adopted the Corporate Governance Code and has complied with all provisions except for a temporary deviation regarding the roles of Chairman and CEO[58]. - The board diversity policy has been revised to ensure gender diversity and limit nominations for individuals aged 70 and above[60]. - Liu Jianping was appointed as an executive director, and several new independent non-executive directors were appointed as of September 1, 2022[61]. - The company has maintained high levels of corporate governance and transparency in its operations[58]. Future Plans and Strategies - The company plans to invest a total of RMB 1 billion in the China Mobile Equity Fund, focusing on 5G applications and the information communication industry[37]. - The company aims to enhance its technological innovation capabilities and accelerate the construction of a dual-carbon work system[41]. - The company is focusing on safety and innovation to drive high-quality development amid a complex economic environment[41]. Accounting Policies - The financial statements are prepared in accordance with the accounting standards issued by the Ministry of Finance, reflecting the company's financial position as of June 30, 2022[100]. - The company recognizes revenue when the company fulfills its performance obligations, which occurs when the customer gains control of the related goods[198]. - Financial assets are classified into whole transfers and partial transfers, with gains or losses recognized based on the difference between the carrying amount and the consideration received[131].
中国民航信息网络(00696) - 2022 - 中期财报