SA(SH:601021)2023-04-27 16:00Financial Performance - The net profit of the parent company for 2022 was -3,255,678,920 yuan, with accumulated undistributed profits of 2,754,221,684 yuan as of December 31, 2022[4]. - The company's operating revenue for 2022 was CNY 8,368,966,339, a decrease of 22.92% compared to CNY 10,858,107,439 in 2021[20]. - The net profit attributable to shareholders for 2022 was a loss of CNY 3,035,823,226, compared to a profit of CNY 39,111,907 in 2021, representing a decrease of 7,861.89%[20]. - The net cash flow from operating activities for 2022 was CNY 438,620,270, down 73.95% from CNY 1,683,550,095 in 2021[20]. - The total assets at the end of 2022 were CNY 43,419,681,529, an increase of 13.31% from CNY 38,320,295,713 at the end of 2021[20]. - The basic earnings per share for 2022 was -CNY 3.30, a decrease of 8,350.00% compared to CNY 0.04 in 2021[21]. - The weighted average return on net assets for 2022 was -24.41%, a decrease of 24.7 percentage points from 0.29% in 2021[22]. - The company reported a net profit attributable to shareholders of -3,035,823,226 RMB, reflecting a significant loss compared to a profit of 37,286,589 RMB in the previous year[72]. Dividend and Profit Distribution - The company plans not to distribute cash dividends or increase capital reserves due to current operational conditions and long-term development considerations[4]. - The profit distribution plan has been approved by the board and will be submitted for shareholder meeting review[5]. - The company has a cash dividend policy stating that at least 10% of the distributable profit will be distributed in cash, with a minimum of 20% of the total distribution being cash dividends[169]. Operational Strategy and Market Position - The aviation transportation industry is capital-intensive, requiring significant capital expenditures for aircraft and related equipment, impacting the company's financial strategy[4]. - The company maintains a prudent financial strategy to retain liquidity for operational development and to mitigate risks from economic fluctuations[4]. - The company is in a growth phase, balancing current funding needs with future development investments[5]. - The company aims to enhance domestic market integration and expand the aviation industry chain, focusing on the development of second and third-tier cities[107]. - The company is positioned as a leader in the low-cost airline model in China, ensuring safety and service quality while maximizing operational efficiency[59]. Risk Management - The company has detailed potential risks in the report, which investors should review[7]. - The company has not reported any non-operational fund occupation by controlling shareholders or related parties[6]. - There are no violations of decision-making procedures regarding external guarantees[6]. - The company faces challenges in securing airport resources due to saturation in some hub airports and competition from established airlines[70]. - The company is exposed to risks from economic cycles, seasonal fluctuations, and unexpected events that could affect air travel demand[124]. Fleet and Capacity - The fleet included 116 Airbus A320 series aircraft, with an average age of 6.7 years as of the end of 2022[31]. - The available ton-kilometer (ATK) decreased by 27.02% year-on-year to 290,599.35 million ton-kilometers, with domestic routes dropping by 27.00%[28]. - The total available seat kilometers decreased by 26.8% year-on-year, with domestic, international, and regional routes down 26.8%, 8.7%, and 67.0% respectively[32]. - The company operated 215 routes by the end of 2022, including 202 domestic routes and 11 international routes[31]. Customer Experience and Service Quality - The company enhanced service quality by improving its APP and mini-program capabilities, offering services like easy security checks and baggage tracking[197]. - The launch of the "Unreturned Price Difference Refund" service in September 2022 aimed to provide travelers with more confidence in their purchases[197]. - The company introduced various paid membership products, including co-branded versions with Alipay, to create additional value for travelers[197]. Research and Development - Research and development expenses for 2022 were approximately 122,307,314 RMB, an increase of 2.4% compared to the previous year[73]. - The total R&D expenditure was CNY 122,307,314, accounting for 1.46% of operating revenue[82]. - The company is investing 100 million RMB in research and development for new technologies aimed at improving customer experience[145]. Corporate Governance - The company has established a comprehensive corporate governance structure and system, ensuring compliance with relevant laws and regulations[131]. - The board of directors consists of 8 members, including 3 independent directors, ensuring a balanced governance structure[133]. - The company has implemented a robust internal control system to effectively prevent and manage operational risks[134]. Environmental and Social Responsibility - The company invested 20.11 million yuan in environmental protection during the reporting period[188]. - The company reduced carbon emissions by 32,792 tons through various carbon reduction measures[192]. - The company donated a total of 1.59 million yuan to charitable projects, benefiting 426 individuals[194]. - The company actively participates in ecological protection projects, contributing 20 million yuan to ecological restoration efforts[190]. Future Outlook - The company anticipates a recovery in the aviation market in 2023, with overall competition expected to develop positively and healthily[102]. - The company plans to expand its fleet by adding 7 A320 aircraft in 2023, 14 in 2024, and 10 in 2025, maintaining a stable growth trajectory during the "14th Five-Year Plan" period[115]. - The company will actively pursue international market opportunities, particularly in Southeast Asia and Northeast Asia, to capitalize on the rebound in international travel demand[114].