Fleet and Operations - The fleet size of the group is 878 aircraft, making it the largest in Asia and among the top in the world[10] - The company has established two major international hubs in Guangzhou and Beijing, gradually forming a network airline model[10] - The company operates a network of 18 subsidiaries and 53 overseas offices, including major cities like Sydney and New York[9] - The company has launched six fast routes, enhancing connectivity in the Greater Bay Area[10] - The company aims to strengthen the integration of the Greater Bay Area, consolidating its market control[10] - The fleet size at the end of 2021 was 878 aircraft, with plans to increase to 937 by the end of 2022[30] - The average fleet age was 8.0 years, with an overall load factor of 71.25% for passenger aircraft[95] - The company introduced 22 new aircraft during the reporting period, including 2 B787 series and 10 A320 series[96] Financial Performance - Operating revenue for 2021 was CNY 101,644 million, an increase of 9.81% from CNY 92,561 million in 2020[18] - Net loss attributable to equity holders for 2021 was CNY (12,106) million, compared to CNY (10,847) million in 2020, representing an increase in loss of 11.61%[18] - Passenger revenue in 2021 was RMB 75,392 million, up 6.89% from RMB 70,534 million in 2020, with domestic passenger revenue increasing by 18.80% to RMB 68,656 million[73] - Cargo and mail revenue rose by 20.58% to RMB 19,887 million in 2021, compared to RMB 16,493 million in 2020[73] - The company's operating expenses increased by RMB 7,229 million or 6.63% to RMB 116,340 million in 2021 from RMB 109,111 million in 2020[72] - The operating loss for 2021 was RMB 9,929 million, compared to an operating loss of RMB 11,864 million in 2020[78] - The total assets as of December 31, 2021, were CNY 323,211 million, a decrease of 0.97% from CNY 326,383 million in 2020[18] - The total liabilities decreased by 1.06% to RMB 238,703 million as of December 31, 2021, compared to RMB 241,252 million in 2020[85] Market Share and Strategy - The market share at Beijing Daxing International Airport reached 45.9% in 2021, with a focus on high-quality development of the Beijing hub[10] - The domestic starting capacity share in the Guangdong-Hong Kong-Macao Greater Bay Area reached 38%[10] - The company is actively promoting the Hainan Free Trade Port strategy to enhance market share in key cities in Hainan[10] - The company has established a hub network strategy centered around Guangzhou and Beijing, with nearly 50% market share in Guangzhou[70] - The company emphasizes high-quality development, focusing on six major transformations, including a shift from speed to quality and from traditional business models to digitalization[67] - The company is actively expanding its hub network, focusing on the development of the Guangzhou and Beijing international hubs, and enhancing flight coverage in the Greater Bay Area[50] Safety and Efficiency - The company has received the highest award for flight safety in Chinese civil aviation, the "Diamond Two-Star Award" for flight safety[10] - The company maintained a safety record of 2.11 million flight hours during the reporting period[44] - The company is focused on the development of new products and technologies to enhance operational efficiency[10] - The company has implemented a green flight initiative, reducing in-flight meal waste by over 2,000 tons through on-demand meal services[57] - The company achieved a flight punctuality rate that ranked first in the industry for six consecutive years[71] Cargo Operations - Cargo traffic (RTK) for international routes increased by 8.77% to 6,434.18 million kilometers in 2021 from 5,915.47 million kilometers in 2020[20] - The company achieved a record high in cargo operations, with a total cargo volume of 732,000 tons, up 8.2% year-on-year[44] - The company reported a strong demand for air cargo, with cargo revenue expected to reach USD 175 billion globally[59] - The average revenue per ton kilometer for cargo increased by 13.66% to RMB 2.58, with international routes showing a 14.57% increase[25] Challenges and Risks - The company faces risks from macroeconomic fluctuations, which directly impact air passenger and cargo demand[118] - The company acknowledges the competitive risks from other transportation modes, particularly the growing high-speed rail network[118] - The global airline industry is projected to continue facing losses in 2022, with the International Air Transport Association estimating a net loss of USD 51.8 billion for the global airline industry in 2021[107] Future Plans - The company plans to enhance domestic market capacity and improve international route profitability in 2022, with new domestic routes planned[98] - The company plans to introduce new aircraft models, including 67 new passenger aircraft by the end of 2022[30] - The company plans to increase domestic capacity, optimize international layout, and enhance market control to improve operational efficiency and profitability[116] - The company will focus on cargo market opportunities, increasing cargo aircraft utilization, and expanding the scale of passenger-to-freight flights[116] Shareholder and Financial Management - The company has a plan to supplement working capital with the funds raised from the H-share issuance[175] - The company plans to issue up to 803,571,428 new A-shares to China Southern Airlines Group, raising a maximum of RMB 4,500 million for working capital[181] - The company issued RMB 16 billion in convertible bonds, with an initial conversion price of RMB 6.24 per share[178] - The company has secured a credit line of approximately RMB 295,683 million from domestic banks, with RMB 204,051 million remaining unused as of December 31, 2021[94] Corporate Governance - The independent non-executive directors confirmed that all related party transactions were conducted under normal commercial terms and in the best interest of shareholders[185] - The company has complied with all relevant laws and regulations affecting its operations, ensuring safety and compliance in applying for new flight slots[147] - There were no significant contracts signed with controlling shareholders or their subsidiaries during the fiscal year[149]
中国南方航空股份(01055) - 2021 - 年度财报