Financial Performance - Total revenue for the year ended December 31, 2022, reached HKD 4,171 million, an increase of 27.2% compared to HKD 3,278 million in 2021[19]. - The company's attributable profit for the year was HKD 73.6 million, down from HKD 525.8 million in 2021, primarily due to asset impairments related to the conflict in Ukraine[19]. - Adjusted attributable profit, excluding the impairment impact, was HKD 512.6 million, slightly lower than HKD 525.8 million in 2021[19]. - The average return on equity decreased to 1.6% in 2022 from 12.4% in 2021[16]. - The adjusted EBITDA for 2022 was HKD 3,929.6 million, compared to HKD 2,864.1 million in 2021, reflecting a significant increase[38]. - Leasing income from finance and operating leases amounted to HKD 3,542.2 million, up HKD 1,041.8 million or 41.7% from HKD 2,500.4 million in 2021[42]. - The average rental yield for finance leases increased to 13.8% in 2022 from 12.9% in 2021, while the average yield for operating leases rose to 11.7% from 11.5%[42]. - The group’s income tax expense for the year ended December 31, 2022, was HKD 307.8 million, compared to HKD 204.9 million in 2021, reflecting a higher effective tax rate due to non-deductible items[54]. Assets and Liabilities - The total assets increased to HKD 55.3 billion in 2022, up from HKD 50.0 billion in 2021[16]. - The total liabilities increased to HKD 49,075.9 million, up HKD 5,064.0 million or 11.5% from HKD 44,011.9 million in 2021, primarily due to increased interest-bearing debt for newly delivered aircraft[39]. - The total amount of bonds and financing notes decreased from HKD 7,022.7 million as of December 31, 2021, to HKD 5,406.5 million as of December 31, 2022, primarily due to the repayment of bonds and financing notes totaling HKD 3,977.3 million and the issuance of new bonds totaling HKD 2,485.6 million[66]. - The total borrowings increased by 17.0% to HKD 38,001.1 million as of December 31, 2022, from HKD 32,477.9 million as of December 31, 2021[64]. - The debt-to-equity ratio was 81.5% in 2022, compared to 80.9% in 2021, reflecting a slight increase[70]. Fleet and Operations - The total value of the fleet as of December 31, 2022, was HKD 119.2 billion, comprising 150 owned aircraft and 26 managed aircraft[7]. - The total fleet size of the company expanded to 176 aircraft, an increase of 24 aircraft year-on-year[22]. - The company delivered a total of 28 aircraft in 2022, including 18 new aircraft and 10 through sale-leaseback arrangements, increasing its fleet size to 176 aircraft by December 31, 2022[31]. - The company's fleet utilization rate reached 100% as of December 31, 2022, with 90% of its owned fleet consisting of highly liquid narrow-body aircraft[31]. - The company had 226 aircraft orders and served 38 airline customers across 17 countries and regions[7]. Dividends and Shareholder Information - The board proposed a final dividend of HKD 0.15 per share, totaling HKD 0.30 per share for the year, down from HKD 0.41 in 2021[19]. - The proposed final dividend for the year ended December 31, 2022, is HKD 0.15 per share, compared to HKD 0.26 per share in 2021[77]. - The company declared an interim dividend of HKD 0.15 per share for the six months ended June 30, 2022, totaling approximately HKD 111.7 million[77]. - As of December 31, 2022, the total issued shares is 744,355,352 shares[104]. - The company’s major shareholders include China Everbright Holdings Limited, which holds 38.08% of the issued shares, and Everbright Aviation Investment Limited, which holds 32.79%[104]. Corporate Governance - The company has established a strategy committee to execute its corporate strategy, while daily operations are managed by the management team[142]. - The board consists of 3 executive directors, 1 non-executive director, and 5 independent non-executive directors, ensuring at least one independent director has appropriate professional qualifications and financial expertise[139]. - The company has adopted a board diversity policy, considering factors such as gender, age, cultural background, and professional experience in the nomination process[151]. - The company has established three board committees: the audit committee, the remuneration committee, and the nomination committee, all chaired by independent non-executive directors[157]. - The company has complied with the disclosure requirements under the Hong Kong Listing Rules for related party transactions for the year ended December 31, 2022[128]. Risk Management - The company has established a "three lines of defense" framework for risk management, involving business units, support departments, and internal audit functions[176]. - The company has not identified any significant control deficiencies or weaknesses during the year[180]. - The company closely monitors foreign exchange risks and uses currency swaps and forwards to hedge against currency exchange risks[185]. - The company effectively hedges floating-rate borrowings through interest rate swap arrangements[185]. - The company has implemented measures to maximize cash flow in the short term and protect its assets in response to COVID-19 impacts[183]. Sustainability and Development - The company continues to focus on green aviation and sustainable development as part of its long-term strategy[6]. - The company is committed to investing in new generation energy-efficient aircraft in line with the long-term trend of green low-carbon development in the aviation industry[27]. - The company published its 9th ESG report in 2022, reflecting its commitment to environmental, social, and governance practices[135]. - The climate risk policy was approved in 2021 and became effective on January 1, 2022, allowing the group to implement comprehensive measures against climate-related risks[166]. Market Outlook - The global airline revenue passenger kilometers (RPK) increased by 64.4% in 2022 compared to 2021, recovering to 68.5% of pre-COVID levels[25]. - The International Air Transport Association (IATA) forecasts that global travel volume will reach 85.5% of pre-pandemic levels in 2023[27]. - The global aviation market is expected to recover rapidly, with IATA projecting a net profit of USD 4.7 billion for airlines in 2023[36].
中国飞机租赁(01848) - 2022 - 年度财报