2023-03-30 16:00Financial Performance - The net profit attributable to shareholders for 2022 was a loss of RMB 37.386 billion, resulting in no cash dividends or capital reserve transfers to shareholders [5]. - In 2022, China Eastern Airlines reported operating revenue of RMB 46,111 million, a decrease of 31.31% compared to RMB 67,127 million in 2021 [21]. - The net profit attributable to shareholders was a loss of RMB 37,386 million in 2022, compared to a loss of RMB 12,214 million in 2021 [21]. - The net cash flow from operating activities was negative RMB 6,474 million in 2022, a decline of 213.74% from positive RMB 5,692 million in 2021 [21]. - The total assets at the end of 2022 were RMB 285,742 million, a slight decrease of 0.28% from RMB 286,548 million at the end of 2021 [21]. - The basic earnings per share for 2022 was -1.9806 yuan, compared to -0.7272 yuan in 2021 [22]. - The weighted average return on equity was -114.16% in 2022, a decrease of 89.13 percentage points from -25.03% in 2021 [22]. - The company's operating revenue for the reporting period was RMB 46,111 million, a decrease of 31.31% compared to the previous year [61]. - The company's operating costs amounted to RMB 74,599 million, down 6.80% year-on-year [62]. - The financial expenses increased by 115.05% to RMB 8,344 million compared to the previous year [62]. - The company reported an asset impairment loss of RMB 0.97 billion, a year-on-year increase of 340.91% [75]. - The company’s other income decreased by 33.37% to RMB 3.253 billion, primarily due to reduced flight capacity [77]. - The company reported a net loss of RMB 30.41 billion for Eastern Airlines Jiangsu in 2022, with a revenue decrease of 20.55% year-on-year [106]. - Eastern Airlines Wuhan experienced a 49.16% decline in revenue, resulting in a net loss of RMB 12.85 billion in 2022 [107]. - Eastern Airlines Yunnan reported a net loss of RMB 24.17 billion in 2022, with a revenue decrease of 29.93% year-on-year [108]. - Shanghai Airlines had a net loss of RMB 44.70 billion in 2022, with a revenue decline of 42.36% compared to the previous year [109]. Operational Metrics - The total number of passengers carried decreased by 46.26% to 42,510.46 thousand in 2022 from 79,099.06 thousand in 2021 [33]. - The available seat kilometers (ASK) decreased by 40.13% to 96,210.85 million in 2022 from 160,690.39 million in 2021 [33]. - The passenger revenue per kilometer (RPK) decreased by 43.67% to 61,287.67 million in 2022 compared to 108,803.69 million in 2021 [33]. - The total available ton kilometers (ATK) decreased by 36.24% to 15,008.09 million in 2022 from 23,539.47 million in 2021 [36]. - The company completed 1.0774 million flight hours and 445,800 takeoffs and landings during the reporting period [43]. - The company achieved a total transportation turnover of 80.25 billion ton-kilometers and a passenger transportation volume of 42.51 million, representing declines of 38.49% and 46.26% respectively compared to 2021 [41]. - The passenger load factor for 2022 was 63.70%, down 4.01 percentage points from 67.71% in 2021 [94]. Strategic Initiatives - The company plans to expand its market presence and enhance its service offerings through new product development and technology advancements [21]. - The company is undergoing strategic adjustments to improve financial performance and operational efficiency in response to market challenges [21]. - The company plans to invest approximately RMB 54.108 billion in capital expenditures for aircraft and related equipment over the next three years, with 2023, 2024, and 2025 estimated at RMB 12.741 billion, RMB 27.851 billion, and RMB 13.516 billion respectively [96]. - The company plans to enhance infrastructure construction and accelerate the development of smart civil aviation in 2023 [113]. - The company plans to introduce 36 aircraft in 2023 and 50 in 2024, while retiring 14 and 23 aircraft respectively [123]. - The company is actively involved in social responsibility initiatives, including rural revitalization and climate change research [122]. - The company is investing 1 billion yuan in technology upgrades to improve customer service and operational efficiency over the next two years [60]. - The company is considering strategic acquisitions to enhance its market position, with a budget of 3 billion yuan allocated for potential mergers and acquisitions [176]. Risk Management - The company has outlined potential risks in its future development discussions, emphasizing the importance of investor awareness regarding investment risks [8]. - The company faces risks related to economic conditions, geopolitical tensions, and public health events that could impact aviation demand [124]. - The company is enhancing its risk management framework to address unforeseen events that could disrupt operations, such as natural disasters [139]. - The company is actively managing risks associated with international market expansion and potential mergers and acquisitions through thorough due diligence [135]. - Fluctuations in jet fuel prices significantly affect operational costs; a 5% change in average fuel prices could lead to a cost variation of approximately RMB 1.112 billion [129]. - The company has substantial foreign currency liabilities, primarily in USD; a 1% change in the USD/RMB exchange rate could impact net profit by RMB 242 million [130]. - Interest rate changes could affect the company's floating rate loan costs; a 25 basis point change could impact net profit by RMB 165 million [132]. Corporate Governance - The company has received a standard unqualified audit report from PwC Zhongtian [4]. - The company has established a complete control over its assets, ensuring no asset encroachment by the controlling shareholder [149]. - The company maintains an independent financial department with a separate accounting system and does not share bank accounts with the controlling shareholder [152]. - The company has established governance systems including rules for shareholder meetings and board meetings to enhance corporate governance [191]. - The board of directors consists of 8 independent directors, including 4 members on specialized committees [141]. - The supervisory board comprises 3 members and held 8 meetings in 2022, with 100% attendance [143]. - The company conducted 25 investor communication events and engaged with 423 investors throughout the year [147]. - The company has a structured process for shareholders to access financial reports and other corporate documents, promoting accountability [160]. Sustainability Efforts - The company is committed to achieving carbon peak and carbon neutrality, exploring fuel-saving management methods combining information technology and market approaches [114]. - The company has established a leadership group to promote the overall deployment of sustainable aviation fuel (SAF) and is actively collaborating with other airlines and research institutions on SAF development [50]. - The company is investing in sustainable practices to comply with environmental regulations, which may increase operational costs [138]. - The management highlighted a focus on sustainability, with plans to reduce carbon emissions by 30% by 2025 through fleet modernization [60]. Customer Experience - The company is committed to creating an excellent travel experience for global passengers through refined service [13]. - The company has launched the "Easy Enjoy" series of products, covering services such as easy boarding, easy transfer, parking privileges, and VIP lounge access, with approximately 410,000 passengers served throughout the year [48]. - The company is enhancing its brand service through digital innovation and improving service efficiency during irregular flight operations [121]. - The company is actively promoting green development and has established a carbon peak action plan as part of its environmental sustainability efforts [50].