2022-03-30 16:00Financial Performance - In 2021, China Eastern Airlines reported a net profit attributable to shareholders of RMB -12.214 billion, indicating a significant impact from the pandemic on operational performance[6]. - The company did not declare a cash dividend for 2021 due to negative distributable profits, as per the relevant provisions of the Company Law and Articles of Association[6]. - In 2021, the company's operating revenue reached RMB 67,127 million, an increase of 14.48% compared to RMB 58,639 million in 2020[24]. - The net profit attributable to shareholders was RMB -12,214 million in 2021, compared to RMB -11,835 million in 2020, indicating a slight deterioration[24]. - The cash flow from operating activities improved significantly to RMB 5,692 million in 2021, up 370.02% from RMB 1,211 million in 2020[24]. - The total assets of the company at the end of 2021 were RMB 286,548 million, a 1.47% increase from RMB 282,408 million at the end of 2020[24]. - The basic earnings per share for 2021 was -0.7272 yuan, slightly worse than -0.7226 yuan in 2020[25]. - The weighted average return on equity decreased to -25.03% in 2021 from -19.60% in 2020, reflecting a decline of 5.43 percentage points[25]. - The company's operating profit for 2021 was RMB -17.788 billion, a decline from RMB -16.801 billion in the previous year, primarily due to increased operating costs exceeding revenue growth[89]. - The company reported operating revenue of RMB 67,127 million, an increase of 14.48% compared to the previous year[73]. - The company's operating costs rose to RMB 80,041 million, reflecting a year-on-year increase of 13.05%[73]. - Passenger revenue reached RMB 54,105 million, up 10.13% year-on-year, accounting for 83.84% of total airline transportation revenue[76]. - Cargo revenue increased significantly by 69.74% to RMB 8,309 million, representing 12.88% of total airline transportation revenue[76]. - The company’s financial expenses rose to RMB 38,800 million, an increase of 48.26% due to debt restructuring and increased interest expenses[83]. - The company’s R&D expenses increased by 78.98% to RMB 315 million, indicating a focus on innovation[73]. Operational Performance - As of the end of 2021, the company operated a modern fleet of 758 passenger aircraft, with an average fleet age of approximately 7.7 years, making it one of the youngest fleets among major global airlines[15]. - The company has a strong focus on enhancing customer experience and operational efficiency as part of its strategic objectives[15]. - The company experienced a net cash flow from operating activities of RMB 7,956 million in Q2 2021, indicating strong operational performance during that period[30]. - The available seat kilometers (ASK) increased by 5.67% to 160,690.39 million in 2021, with domestic routes up by 15.82% and international routes down by 76.06%[34]. - Passenger traffic measured in revenue passenger kilometers (RPK) rose by 1.43% to 108,803.69 million, with domestic routes increasing by 10.81% while international routes decreased by 83.14%[34]. - The total number of passengers carried increased by 6.00% to 79,099.06 thousand, with domestic passengers up by 9.06% and international passengers down by 88.06%[34]. - The cargo available ton kilometers (AFTK) grew by 30.68% to 9,077.33 million, with international routes seeing a significant increase of 42.95%[35]. - The cargo revenue ton kilometers (RFTK) surged by 54.24% to 3,393.40 million, with international routes increasing by 77.73%[35]. - The company maintained a safety flight record of 1.755 million hours and 756,000 takeoffs and landings in 2021, with increases of 13.2% and 12.4% year-on-year[46]. - The company improved its flight punctuality rate to 88.6%, surpassing the average level of the civil aviation industry[54]. - The company reported a decrease in passenger load factor to 67.71%, down by 2.83 percentage points from the previous year[34]. - The revenue per passenger kilometer increased by 7.93% to RMB 0.531, with international routes seeing a significant rise of 120.47%[34]. Strategic Initiatives - The company aims to build a world-class modern aviation comprehensive service integrator, focusing on precision, delicacy, and detail in service delivery[15]. - The company has committed to long-term development strategies that prioritize shareholder interests despite the current financial challenges[6]. - The company plans to invest approximately RMB 249 billion in aircraft and related equipment over the next three years, with expected capital expenditures of RMB 95 billion, RMB 80 billion, and RMB 74 billion for 2022 to 2024 respectively[106]. - The company aims to enhance its market control through the development of dual core hubs in Beijing-Shanghai and regional hubs in Xi'an and Kunming, while focusing on digital transformation and green development[129]. - The company is committed to digital transformation and innovation, implementing its "14th Five-Year" information and technology innovation plan[136]. - The company will focus on improving service quality by enhancing the overall service brand and ensuring integrated service requirements are met[135]. - The company is actively optimizing capacity deployment and enhancing marketing efforts to improve passenger load factors and unit revenue in response to rising fuel prices[149]. Risk Management and Governance - The company emphasizes the importance of risk awareness in its forward-looking statements regarding economic conditions and future operational plans[6]. - The company is enhancing its risk management framework to address potential supply chain disruptions from key suppliers in the aviation industry[155]. - The company is committed to improving information security to protect customer data and maintain operational integrity against potential cyber threats[153]. - The company emphasizes good corporate governance to enhance investor confidence and ensure compliance with regulatory requirements[160]. - The company maintains a strict compliance framework for related party transactions, ensuring fairness and transparency without harming the interests of minority shareholders[164]. - The company has established a robust governance structure, including a board of directors and supervisory board, to ensure independent operations[173]. Market Outlook - The company anticipates a "slow recovery" in the aviation market due to ongoing pandemic uncertainties and geopolitical tensions[130]. - The company faces intensified competition in the domestic and international aviation markets due to the opening of the domestic aviation market and increased capacity from international airlines[147]. - The company anticipates that by 2025, China's civil aviation transport turnover will reach 1,750 billion ton-kilometers, with passenger transport volume at 930 million[127]. - Fluctuations in international oil prices significantly impact the company's fuel costs; a 5% change in average fuel prices could result in a cost variation of approximately RMB 1.03 billion[148]. - The company has significant foreign currency liabilities, primarily in USD; a 1% change in the USD/RMB exchange rate could substantially affect net profit and other comprehensive income[150]. Social Responsibility - The company was recognized as an advanced collective in poverty alleviation efforts, reflecting its commitment to social responsibility[60]. - The company was rated MSCI ESG A grade for two consecutive years, ranking first in the global industry[60]. - The company actively participates in carbon trading markets and has executed China's first carbon-neutral flight, showcasing its commitment to green development[59]. - The company is committed to fulfilling its social responsibilities and advancing its "dual carbon" strategy for sustainable development[139].