2019-04-29 16:00Financial Performance - Operating revenue for the first quarter was RMB 30,053 million, reflecting a year-on-year growth of 12.34%[6] - Net profit attributable to shareholders was RMB 2,006 million, a 1.16% increase year-on-year[6] - The operating profit for Q1 2019 was RMB 2,810 million, a rise from RMB 2,580 million in Q1 2018[21] - The total comprehensive income for Q1 2019 was RMB 2,031 million, slightly down from RMB 2,100 million in Q1 2018[22] - The company reported a basic earnings per share of RMB 0.14 for Q1 2019, unchanged from Q1 2018[22] - The financial expenses for Q1 2019 were RMB 213 million, a significant improvement from a financial expense of RMB (465) million in Q1 2018[21] Asset and Liability Management - Total assets reached RMB 280,012 million, an increase of 18.27% compared to the end of the previous year[6] - The total liabilities as of March 31, 2019, amounted to RMB 220,496 million, an increase from RMB 177,413 million as of December 31, 2018[20] - The total equity attributable to shareholders of the parent company was RMB 55,964 million as of March 31, 2019, compared to RMB 55,765 million at the end of 2018[20] - The total current liabilities as of March 31, 2019, were RMB 83,259 million, an increase from RMB 73,061 million at the end of 2018[20] - The total liabilities increased to RMB 214,902 million, up RMB 37,489 million from the previous year[26] - Total liabilities rose from RMB 143,522 million in 2018 to RMB 160,699 million in 2019, an increase of about 12%[29] Cash Flow Analysis - Cash flow from operating activities was RMB 5,335 million, down 16.33% from the previous year[6] - In Q1 2019, the net cash flow from operating activities was RMB 5,335 million, a decrease of 16.4% compared to RMB 6,376 million in Q1 2018[23] - Total cash inflow from operating activities was RMB 34,431 million, up 7.7% from RMB 31,890 million in the same period last year[23] - Cash outflow from operating activities totaled RMB 29,096 million, an increase of 14.5% from RMB 25,514 million in Q1 2018[23] - Cash flow from investing activities showed a net outflow of RMB 6,513 million, compared to RMB 4,091 million in Q1 2018, indicating a significant increase in investment expenditures[24] - Cash inflow from financing activities was RMB 17,654 million, a 33.5% increase from RMB 13,236 million in Q1 2018[24] - The net cash flow from financing activities was RMB 2,413 million, recovering from a net outflow of RMB 4,106 million in Q1 2018[24] Investment and R&D - Research and development expenses rose by 50.00% as a result of increased investment in R&D[15] - The company’s research and development expenses for Q1 2019 were RMB 33 million, up from RMB 22 million in Q1 2018[21] Changes Due to New Standards - The company implemented new leasing standards starting January 1, 2019, affecting financial reporting[12] - Financial expenses surged by 145.81% mainly due to a decrease in foreign exchange gains and increased interest expenses following the new leasing standards[15] - Deferred tax assets increased by 239.13% due to adjustments in retained earnings and deferred taxes as a result of the new leasing standards[13] - The impact of the new leasing standards resulted in an adjustment of RMB 16,430 million to total liabilities[30] Strategic Moves - The company is in the process of a non-public offering of A-shares and H-shares, aiming to introduce strategic investors, including Juneyao Airlines and its controlling shareholder[16] - Cash and cash equivalents increased by 188.52% due to the company reserving funds for aircraft and engine prepayments based on external market conditions[13] - Accounts receivable increased by 95.33% primarily due to the impact of the billing and settlement plan clearing calendar[13] - Short-term borrowings decreased by 60.59% as the company reduced short-term financing and increased the issuance of ultra-short-term financing bonds[13] - Long-term borrowings decreased by 39.45% due to a reduction in long-term financing in favor of ultra-short-term financing bonds[13] - The company reported a significant increase in long-term borrowings, which rose to RMB 8,490 million, indicating a strategic move to leverage for growth[26] Overall Financial Position - The weighted average return on equity was 3.65%, an increase of 0.01 percentage points[6] - Basic earnings per share were RMB 0.1387, up 1.17% year-on-year[6] - The total non-current assets increased from RMB 169,187 million in 2018 to RMB 185,785 million in 2019, representing a growth of about 9.8%[28] - Shareholders' equity decreased from RMB 44,251 million in 2018 to RMB 43,504 million in 2019, a decline of approximately 1.7%[30]