SA(SH:601021)2019-10-30 16:00Important Notice The company's board of directors, supervisory board, and senior management ensure the truthfulness, accuracy, and completeness of this quarterly report, assuming corresponding legal responsibilities - The company's board of directors, supervisory board, and senior management ensure the truthfulness, accuracy, and completeness of this quarterly report, assuming corresponding legal responsibilities439 - Wang Yu, the company's responsible person, Wang Zhijie, the person in charge of accounting, and Chen Ke, the head of the accounting department, guarantee the truthfulness, accuracy, and completeness of the financial statements439 - This company's Q3 2019 report has not been audited439 Company Profile This section provides an overview of the company's key financial performance and shareholder structure as of the reporting period Key Financial Data As of the first three quarters of 2019, the company achieved robust performance with operating revenue growing by 13.61% to CNY 11.56 billion and net profit attributable to shareholders increasing by 21.70% to CNY 1.72 billion, demonstrating strong profitability and healthy cash flow Key Financial Data for Q1-Q3 2019 | Metric | Q1-Q3 2019 | Q1-Q3 2018 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue (CNY) | 11,564,379,345 | 10,179,252,453 | 13.61% | | Net Profit Attributable to Shareholders (CNY) | 1,718,747,518 | 1,412,285,997 | 21.70% | | Net Profit Excluding Non-recurring Items (CNY) | 1,586,748,394 | 1,272,125,437 | 24.73% | | Net Cash Flow from Operating Activities (CNY) | 3,199,218,415 | 2,543,556,962 | 25.78% | | Basic Earnings Per Share (CNY/share) | 1.87 | 1.58 | 18.35% | | Weighted Average ROE (%) | 12.19% | 11.98% | Increased by 0.21 percentage points | - In the first three quarters of 2019, the company's non-recurring gains and losses totaled CNY 132 million, primarily from government subsidies, disposal gains on non-current assets, and bill settlement income641 Shareholder Information As of the reporting period, the company had 20,134 shareholders, with Shanghai Spring International Travel Service (Group) Co., Ltd. as the controlling shareholder holding 54.98%, and Mr. Wang Zhenghua as the ultimate controlling person - As of the end of the reporting period, the company had a total of 20,134 shareholders742 Top Five Shareholders' Holdings | Shareholder Name | Number of Shares Held | Shareholding Percentage (%) | | :--- | :--- | :--- | | Shanghai Spring International Travel Service (Group) Co., Ltd. | 504,000,000 | 54.98 | | Hong Kong Securities Clearing Company Limited | 35,441,316 | 3.87 | | Shanghai Spring Airlines Charter Travel Service Co., Ltd. | 34,295,661 | 3.74 | | Shanghai Chunxiang Investment Co., Ltd. | 23,907,711 | 2.61 | | Minsheng Royal Asset Management - Ping An Bank - Minsheng Royal Xinniu Targeted Issuance No. 82 Asset Management Plan | 17,447,657 | 1.90 | - The controlling shareholder, Spring International Travel Service, along with Spring Airlines Charter, Chunxiang Investment, and Chunyi Investment, form a concerted action group, with Mr. Wang Zhenghua as the ultimate controlling person1045 Significant Events This section analyzes significant changes in key financial statement items and indicators, detailing the underlying reasons for these movements Analysis of Significant Changes in Key Financial Statement Items and Indicators During the reporting period, several financial statement items experienced significant changes, including a 68.31% increase in monetary funds and a 91.63% decrease in bonds payable, alongside substantial shifts in investment income, asset disposal gains, and cash flows from investing and financing activities Balance Sheet Key Item Changes and Reasons | Item | Change (%) | Primary Reason | | :--- | :--- | :--- | | Monetary Funds | 68.31% | Increase in other monetary funds | | Prepayments | 173.34% | New prepaid land transfer fees | | Other Receivables | -71.60% | Decrease in structured deposits | | Short-term Borrowings | 49.82% | Increase in aircraft prepayment borrowings | | Taxes Payable | 112.99% | Increase in corporate income tax payable | | Bonds Payable | -91.63% | Bond repurchases | Income Statement Key Item Changes and Reasons | Item | Change (%) | Primary Reason | | :--- | :--- | :--- | | R&D Expenses | 36.22% | Increased investment in IT technology application and development | | Investment Income | 149.40% | Changes in net gains/losses from foreign exchange forward contracts and loan interest rate swap contracts settlement | | Fair Value Change Income | -149.02% | Fair value changes of financial assets and liabilities held for trading | | Asset Disposal Gains | 108.50% | Increase in gains from transfer of purchase rights | - Net cash outflow from investing activities decreased by 80.80%, primarily due to a reduction in structured deposits, while net cash inflow from financing activities decreased by 68.82% due to prior period private placement financing and current period bond repurchases121348 Appendix This section includes the company's unaudited financial statements and details on the impact of new accounting standards implementation Financial Statements This section presents the company's unaudited consolidated and parent company financial statements, including the balance sheet, income statement, and cash flow statement, reflecting the financial position as of September 30, 2019, and operating results for the first three quarters of 2019 Consolidated Balance Sheet As of September 30, 2019, total assets reached CNY 29.39 billion, a 10.60% increase from year-end, with total liabilities at CNY 14.53 billion and owners' equity attributable to the parent company at CNY 14.86 billion, up 11.52% Consolidated Balance Sheet Key Items (Unit: CNY) | Item | September 30, 2019 | December 31, 2018 | Change | | :--- | :--- | :--- | :--- | | Total Assets | 29,391,219,056 | 26,575,393,475 | +10.60% | | Monetary Funds | 8,235,214,579 | 4,892,899,395 | +68.31% | | Fixed Assets | 10,665,488,380 | 10,454,334,362 | +2.02% | | Total Liabilities | 14,527,398,120 | 13,250,715,198 | +9.63% | | Short-term Borrowings | 4,037,850,663 | 2,695,159,618 | +49.82% | | Owners' Equity Attributable to Parent Company | 14,859,473,636 | 13,324,678,277 | +11.52% | Consolidated Income Statement In the first three quarters of 2019, operating revenue reached CNY 11.56 billion, a 13.61% increase, with total operating costs at CNY 10.03 billion, resulting in net profit attributable to parent company shareholders of CNY 1.72 billion, up 21.70% Consolidated Income Statement Key Items (Unit: CNY) | Item | Q1-Q3 2019 | Q1-Q3 2018 | Change | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 11,564,379,345 | 10,179,252,453 | +13.61% | | Total Operating Costs | 10,024,778,666 | 9,083,614,554 | +10.36% | | Operating Profit | 2,228,333,598 | 1,846,704,599 | +20.66% | | Total Profit | 2,274,504,090 | 1,878,850,184 | +21.06% | | Net Profit Attributable to Parent Company Shareholders | 1,718,747,518 | 1,412,285,997 | +21.70% | | Basic Earnings Per Share (CNY/share) | 1.87 | 1.58 | +18.35% | Consolidated Cash Flow Statement In the first three quarters of 2019, net cash flow from operating activities was CNY 3.20 billion, a 25.78% increase, while net cash outflow from investing activities significantly decreased by 80.80% to CNY 896 million, and net cash inflow from financing activities decreased by 68.82% to CNY 922 million Consolidated Cash Flow Statement Key Items (Unit: CNY) | Item | Q1-Q3 2019 | Q1-Q3 2018 | Change | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 3,199,218,415 | 2,543,556,962 | +25.78% | | Net Cash Flow from Investing Activities | -895,832,774 | -4,665,332,043 | -80.80% (Net outflow decreased) | | Net Cash Flow from Financing Activities | 922,265,149 | 2,958,132,958 | -68.82% | | Period-end Cash and Cash Equivalents Balance | 8,043,373,181 | 5,099,744,695 | +57.72% | Impact of Accounting Standard Changes Effective January 1, 2019, the company adopted new financial instrument accounting standards, reclassifying certain financial assets and liabilities on the opening balance sheet, which solely impacted statement presentation without affecting opening net assets or net profit - The company adopted new financial instrument accounting standards, including the Ministry of Finance's revised 'Accounting Standard for Business Enterprises No. 22 – Recognition and Measurement of Financial Instruments,' effective January 1, 2019313566 Key Adjustments to Opening Consolidated Balance Sheet (Unit: CNY) | Item Before Adjustment | Amount Before Adjustment | Item After Adjustment | Amount After Adjustment | | :--- | :--- | :--- | :--- | | Financial Assets Measured at Fair Value with Changes Recognized in Profit or Loss | 16,745,806 | Financial Assets Held for Trading | 16,745,806 | | Available-for-sale Financial Assets | 986,758,817 | Investments in Other Equity Instruments | 986,758,817 | | Financial Liabilities Measured at Fair Value with Changes Recognized in Profit or Loss | 3,558,635 | Financial Liabilities Held for Trading | 3,558,635 |