2019-03-29 16:00Financial Performance - In 2018, the company reported operating revenue of RMB 114.93 billion, a 12.99% increase from RMB 101.72 billion in 2017 [26]. - The net profit attributable to shareholders was RMB 2.71 billion, representing a significant decrease of 57.35% compared to RMB 6.35 billion in 2017 [26]. - The net profit after deducting non-recurring gains and losses was RMB 1.93 billion, down 56.96% from RMB 4.49 billion in the previous year [26]. - The company generated a net cash flow from operating activities of RMB 22.34 billion, an increase of 14.13% from RMB 19.57 billion in 2017 [26]. - As of the end of 2018, the company's total assets reached RMB 236.77 billion, a 4.09% increase from RMB 227.46 billion in 2017 [26]. - The company's net assets at the end of 2018 were RMB 55.77 billion, reflecting a 5.01% increase from RMB 53.11 billion in 2017 [26]. - Basic earnings per share for 2018 were RMB 0.1873, a decrease of 57.34% from RMB 0.4391 in 2017 [27]. - The weighted average return on equity decreased to 3.52% in 2018 from 8.94% in 2017, a decline of 5.42 percentage points [27]. Operational Highlights - The company operated a fleet of 692 passenger aircraft, with an average fleet age of approximately 5.7 years, making it one of the youngest fleets among major global airlines [16]. - In 2018, the company transported over 120 million passengers, expanding its route network to 1,150 destinations across 175 countries and regions [16]. - The company achieved a passenger volume of 121.2 million in 2018, representing a year-on-year increase of 9.37% [46]. - The total number of frequent flyer members reached 39.63 million by the end of 2018, with a total of 9,283 corporate clients [46]. - The company operated a total of 692 aircraft, including 680 passenger aircraft and 12 managed business jets [52]. Strategic Initiatives - The company aims to transform from a traditional airline carrier to a modern integrated aviation service provider, focusing on brand building and capability enhancement [36]. - The company is positioned to benefit from the "Yangtze River Delta Integration" national strategy and the construction of Beijing Daxing International Airport [38]. - The company plans to introduce strategic investors, including Juneyao Airlines, to hold a combined 10% stake [64]. - The company is enhancing its digital capabilities, achieving over 98% automation in nine business areas, leveraging big data and cloud computing for improved decision-making [43]. - The company is exploring low-cost airline operations and e-commerce markets as part of its transformation strategy [149]. Challenges and Risks - The company continues to face challenges such as rising fuel prices and increased market competition while maintaining a focus on high-quality development [54]. - The company faces risks related to economic and trade environments, which could impact passenger and cargo demand [133]. - The company is actively monitoring policy and regulatory changes that may affect its business operations and is prepared to adapt accordingly [134]. - The company faces risks from international terrorism activities targeting aircraft and airports, which could negatively impact flight safety and passenger demand [137]. Governance and Compliance - The company reported a standard unqualified audit opinion from Ernst & Young Hua Ming Accounting Firm, ensuring the accuracy and completeness of the financial statements [7]. - The company has no non-operating fund occupation by controlling shareholders or related parties, nor any violations in decision-making procedures for external guarantees [10]. - The company’s governance structure and shareholder situation are outlined, ensuring transparency and compliance with regulatory requirements [6]. - The company’s board of directors and management have confirmed the authenticity and completeness of the annual report content, taking legal responsibility for any misstatements [6]. Future Outlook - The company’s future development discussions highlight potential risks and strategic considerations for 2019 [11]. - The company plans to continue monitoring economic conditions and market trends, acknowledging that actual results may differ from expectations due to various uncertainties [125]. - The aviation transportation industry is expected to maintain a double-digit annual growth rate in passenger turnover during the 13th Five-Year Plan period, driven by rising disposable income and increasing demand for air travel [126]. - The company plans to introduce a total of 60 aircraft in 2019, with 61 in 2020 and 18 in 2021, while retiring 1, 10, and 10 aircraft respectively in those years [132]. Community and Environmental Responsibility - The company is actively engaged in poverty alleviation efforts, focusing on infrastructure, industry development, education, and healthcare in targeted poverty-stricken areas [167]. - The company invested RMB 16.2687 million in poverty alleviation efforts in 2018 [170]. - The company is committed to environmental protection and has implemented measures to reduce fuel consumption and carbon emissions [174].