Financial Performance - For the six months ending June 30, 2022, Air China reported operating revenue of RMB 23,952,653, a decrease of 36.5% compared to RMB 37,663,803 for the same period in 2021[8]. - The company experienced a significant operating loss of RMB (16,972,714) for the first half of 2022, compared to an operating loss of RMB (6,042,612) in the prior year, indicating a deterioration in financial performance[8]. - The net loss attributable to shareholders for the six months was RMB (19,436,846), which is a substantial increase from RMB (6,781,429) in the same period of 2021, reflecting ongoing challenges[8]. - EBITDA for the first half of 2022 was reported at RMB (6,514,396), a decline from a positive EBITDA of RMB 4,289,009 in the previous year[8]. - The return on equity for shareholders was reported at (45.32)%, a significant drop from (9.10)% in the previous year, highlighting the impact of losses on shareholder value[8]. - The company’s equity attributable to shareholders decreased to RMB 42,889,048 from RMB 61,368,557, reflecting the adverse effects of the financial losses[10]. - The company reported a significant increase in other comprehensive income for the period, totaling RMB 984,012 thousand compared to RMB 648,496 thousand in the previous year[96]. - The company incurred a loss of RMB 19.44 billion for the six months ended June 30, 2022, compared to a loss of RMB 6.78 billion in the same period in 2021, representing an increase in losses of approximately 187.5%[100]. Assets and Liabilities - Total assets as of June 30, 2022, stood at RMB 299,295,794, slightly up from RMB 298,381,190 at the end of 2021, indicating stability in asset management[10]. - Total liabilities increased to RMB 254,694,816 from RMB 232,550,079, suggesting a rise in financial obligations[10]. - The group’s total liabilities amounted to RMB 166.66 billion, an increase from RMB 140.93 billion as of December 31, 2021, representing a growth of approximately 18.3%[99]. - The company’s total equity attributable to shareholders decreased to RMB 42.89 billion as of June 30, 2022, down from RMB 61.37 billion at the end of 2021, reflecting a decline of approximately 30.0%[99]. - The group reported a net current liability of approximately RMB 55.58 billion as of June 30, 2022, with unused bank credit facilities amounting to RMB 126.29 billion, ensuring sufficient liquidity for debt repayment and capital expenditures[105]. Operational Metrics - Available seat kilometers (ASK) decreased by 46.32% to 44,282.01 million from 82,499.92 million year-on-year[12]. - Passenger load factor dropped by 10.19 percentage points to 60.42% compared to 70.61% in the previous year[13]. - Revenue passenger kilometers (RPK) increased by 54.07% to 26,756.90 million from 58,252.60 million year-on-year[12]. - Total passenger numbers decreased by 55.00% to 17,373.04 thousand from 38,610.67 thousand year-on-year[12]. - The fleet size reached 748 aircraft with an average age of 8.39 years, after introducing 16 new aircraft and retiring 14 during the reporting period[14]. - The operating cost per available seat kilometer increased by 71.64% to RMB 0.9569 compared to RMB 0.5575 in the previous year[13]. - Cargo and mail carried decreased by 18.98% to 486,513.58 tons from 600,504.45 tons year-on-year[12]. Strategic Initiatives - Air China continues to focus on its strategic direction of hub network development and cost leadership, aiming to enhance service quality despite current financial challenges[3]. - The company is committed to innovation and expansion, with ongoing efforts in fleet development and market penetration to improve future performance[3]. - The company plans to introduce 36 new aircraft and retire 46 aircraft over the next two years[16]. - The company is actively responding to market volatility risks by deepening supply-side structural reforms and adapting to the new development stage[55]. - The company is planning to acquire control of Shandong Airlines Group and has made progress in negotiations for equity transfer and capital increase[90]. - The company is proceeding with a non-public offering of A-shares, targeting up to 35 specific investors, including AVIC Group, with a minimum subscription amount of 5.5 billion RMB[93]. Market and Competitive Landscape - The competitive landscape is evolving with opportunities for mergers and consolidations in the industry, which may enhance industry concentration[58]. - The expansion of China's high-speed rail network is expected to change the economic geography and create a competitive relationship between high-speed rail and civil aviation[59]. - Future outlook indicates a focus on expanding market presence and enhancing operational efficiency to recover from the financial impacts of the pandemic[102]. - Market expansion strategies are being implemented to capture a larger share of the aviation market[190]. Shareholder Information - China Aviation Group Company holds 5,952,236,697 A shares, representing 40.98% of the total issued shares[66]. - Cathay Pacific Airways holds 2,633,725,455 H shares, accounting for 18.13% of the total issued shares[68]. - The total number of shareholders is 106,297, with 3,013 being H share registered shareholders[68]. - The shares held by China Aviation Group Company are subject to a freeze, totaling 127,445,536 shares[71]. - The shares held by China Aviation Limited are also subject to a freeze, totaling 36,454,464 shares[71]. Corporate Governance and Compliance - The company has complied with the Corporate Governance Code, except for the provision B.2.2 regarding the rotation of directors every three years, which was postponed due to incomplete nominations[74]. - The company has adopted a behavior code that is not less stringent than the Standard Code as per the listing rules, and all directors and supervisors have adhered to this code during the reporting period[75]. - The company has established a carbon peak and carbon neutrality leadership group to promote green development and has implemented various initiatives to reduce plastic waste and carbon emissions[77]. Debt and Financing - The group has obtained bank credit facilities totaling RMB 193.689 billion, of which approximately RMB 67.399 billion has been utilized, sufficient to meet liquidity and future capital expenditure commitments[54]. - The company issued six debt financing instruments, with total amounts of 10.17 billion RMB, 10.17 billion RMB, 20.26 billion RMB, 10.09 billion RMB, 20.52 billion RMB, and 15.14 billion RMB respectively[82]. - The interest rates for the issued bonds range from 2.43% to 3.2%[82]. - The company did not declare an interim dividend for the six months ending June 30, 2022[87].
中国国航(00753) - 2022 - 中期财报