SA(SH:601021)2022-04-28 16:00Financial Performance - The net profit of the parent company for 2021 was -282.87 million CNY, with accumulated undistributed profits amounting to 600.99 million CNY as of December 31, 2021[4]. - The company plans not to distribute cash dividends or increase capital reserves due to the significant adverse impact of the COVID-19 pandemic on its operations[4]. - The company's operating revenue for 2021 was CNY 10,858,107,439, representing a 15.85% increase compared to CNY 9,372,918,140 in 2020[17]. - The net profit attributable to shareholders for 2021 was CNY 39,111,907, a significant recovery from a loss of CNY 588,413,004 in 2020[17]. - The net cash flow from operating activities increased by 103.88% to CNY 1,683,550,095 in 2021, up from CNY 825,762,360 in 2020[17]. - Total assets at the end of 2021 reached CNY 38,320,295,713, an 18.16% increase from CNY 32,430,080,969 at the end of 2020[17]. - The company's net asset attributable to shareholders decreased by 3.06% to CNY 13,747,091,930 at the end of 2021, down from CNY 14,180,855,764 at the end of 2020[17]. - Basic earnings per share for 2021 were CNY 0.04, recovering from a loss of CNY 0.64 per share in 2020[18]. - The weighted average return on equity for 2021 was 0.29%, an increase of 4.31 percentage points from -4.02% in 2020[18]. - The company reported a total of 916,727,713 shares outstanding as of the end of 2020 after several stock repurchase actions[19]. Operational Highlights - The company is in a capital-intensive industry, requiring substantial capital expenditures for aircraft and related equipment, while maintaining a prudent financial strategy to ensure liquidity[4]. - The ongoing COVID-19 pandemic continues to pose risks to the company's future production and operations[4]. - The company continues to focus on expanding its market presence and enhancing operational efficiency through strategic initiatives[17]. - The company is focused on balancing current funding needs with future development investments, considering both short-term and long-term shareholder returns[4]. - The company has implemented new leasing standards as per the Ministry of Finance's guidelines[16]. - The company has outlined potential risks in its management discussion and analysis section, highlighting challenges it may face in the future[7]. Market and Capacity - The available ton-kilometers (ATK) increased by 10.52% year-on-year to 398,196.23 million ton-kilometers in 2021, driven by a significant increase in domestic routes[26]. - The passenger turnover (RPK) rose by 14.02% year-on-year to 3,437,563.74 million passenger-kilometers, with domestic routes contributing to a 21.25% increase[26]. - The average passenger load factor improved by 3.20 percentage points to 82.87% in 2021, with domestic routes showing a 2.65 percentage point increase[26]. - The total number of operating routes increased by 2.28% year-on-year, reaching 224 by the end of 2021[27]. - Domestic capacity increased by 17.4% year-on-year in 2021, and by 47.0% compared to pre-pandemic levels in 2019[33]. - The company expanded its route network to a total of 224 routes by the end of 2021, with 218 domestic routes and 5 international routes, reflecting a strong focus on domestic operations[32]. Safety and Compliance - The company invested 272,744 million yuan in safety-related expenditures, achieving a major accident rate of 0 over 1 million flight hours[30]. - The company has a clear safety responsibility framework with 7,389 safety responsibilities defined across various levels and key positions[184]. - The company has implemented measures to ensure safety hazard elimination, including regular inspections and accountability for safety management[184]. - The company has been recognized with multiple awards for its contributions to poverty alleviation and social responsibility initiatives[184]. - The company achieved a 95.5% vaccination rate among frontline employees, ensuring no COVID-19 infections occurred at work[185]. Corporate Governance - The board of directors consists of 8 members, including 3 independent directors, ensuring compliance with legal requirements and effective governance[125]. - The company has established a reasonable performance evaluation system with clear performance assessment indicators for all positions, enhancing scientific and motivational aspects[127]. - The company actively engages with investors through various channels, including performance briefings and online communication, to ensure transparency and equal access to information[126]. - The company has implemented internal control systems that cover all aspects of operations, effectively preventing and controlling various risks[126]. - The company emphasizes the importance of corporate governance, adhering to laws and regulations to protect the rights of shareholders, especially minority shareholders[124]. Social Responsibility - The company has been involved in various public welfare activities, including educational support and community assistance[189]. - The company continues to strengthen cooperation with targeted poverty alleviation areas as part of its rural revitalization strategy[189]. - The company has maintained a long-term commitment to fulfilling its social responsibilities and enhancing community engagement[189]. - The company has successfully transported tourists to Xinjiang, aiding in the region's industrial development since 2020[189]. - The company donated 1.5 million yuan to participate in the "Ecological Poverty Alleviation Special Fund" and supported multiple ecological restoration projects[182]. Future Outlook - The company aims to increase its passenger transport volume to 930 million by 2025, as part of its strategic growth plan[100]. - The company anticipates that the civil aviation market penetration rate will improve, with a target of achieving a total turnover of 1,750 billion ton-kilometers by 2025[100]. - The company plans to enhance auxiliary business revenue, focusing on travel-related products and services to improve customer experience[59]. - The company is investing heavily in R&D, with a budget allocation of 500 million CNY for new technologies and product development in the upcoming year[135]. - The company is considering strategic acquisitions to enhance its market position, targeting firms with a combined revenue of 500 million[143].