吉祥航空(603885) - 2020 Q3 - 季度财报

Important Notice Report Authenticity Guarantee The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of this quarterly report, affirming no false statements, misleading representations, or material omissions, and note that this quarterly financial report is unaudited - Management guarantees the truthfulness, accuracy, and completeness of the report content and assumes corresponding legal responsibilities[6] - The company's Q3 2020 report is unaudited[6] Company Profile Key Financial Data Severely impacted by the COVID-19 pandemic, the company's performance in the first three quarters of 2020 significantly declined, with revenue decreasing by 44.86% year-on-year and net profit attributable to shareholders turning into a loss of 480 million yuan, a 139.19% year-on-year decrease, alongside negative operating cash flow Key Financial Data for Q1-Q3 2020 (Compared to Prior Year) | Indicator | Q1-Q3 2020 | Q1-Q3 2019 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue (CNY) | 7,169,949,438.15 | 13,003,732,151.55 | -44.86 | | Net Profit Attributable to Shareholders (CNY) | -479,701,390.62 | 1,224,135,078.77 | -139.19 | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) (CNY) | -607,995,310.71 | 1,140,769,788.33 | -153.30 | | Net Cash Flow from Operating Activities (CNY) | -58,428,231.84 | 2,420,021,876.46 | -102.41 | | Basic Earnings Per Share (CNY/share) | -0.24 | 0.67 | -135.82 | | Weighted Average Return on Net Assets (%) | -3.99% | 12.12% | Decrease of 16.11 percentage points | Non-recurring Gains and Losses for Q1-Q3 2020 | Item | Amount (CNY) | | :--- | :--- | | Government grants included in current profit and loss | 105,635,837.65 | | Fair value changes and investment income from financial assets | 69,111,743.03 | | Net other non-operating income and expenses | -5,840,451.56 | | Gains and losses on disposal of non-current assets | 2,799,261.21 | | Total | 128,293,920.09 | Shareholder Information As of the end of the reporting period, the company had 47,784 shareholders, with controlling shareholder Shanghai Juneyao (Group) Co., Ltd. holding 51.92% of shares, some of which are pledged, indicating a relatively concentrated ownership structure among the top ten shareholders - As of the end of the reporting period, the company had a total of 47,784 shareholders[12] Top Ten Shareholders' Holdings | Shareholder Name | Number of Shares Held | Holding Percentage (%) | | :--- | :--- | :--- | | Shanghai Juneyao (Group) Co., Ltd. | 1,020,862,080 | 51.92 | | China Eastern Air Industry Investment Co., Ltd. | 294,921,623 | 15.00 | | Wang Junhao | 77,280,000 | 3.93 | | Shanghai Juneyao Airlines Investment Co., Ltd. | 36,066,977 | 1.83 | | Zhong Ou New Blue Chip Flexible Allocation Mixed Securities Investment Fund | 24,932,181 | 1.27 | - Controlling shareholder Shanghai Juneyao (Group) Co., Ltd. pledged 163 million shares it holds[12] - Shareholder Wang Junhao holds equity in both Shanghai Juneyao (Group) Co., Ltd. and Shanghai Juneyao Airlines Investment Co., Ltd., but has no concerted action relationship with other shareholders[14] Significant Matters Analysis of Significant Changes in Key Financial Statement Items and Indicators During the reporting period, the company's financial statement items significantly changed due to the pandemic and new revenue standard implementation, with increased cash and short-term borrowings to manage liquidity, decreased revenue and costs from reduced flights, higher finance costs from increased borrowing, and a shift to external financing to maintain operations Major Balance Sheet Item Changes (Compared to Prior Year-End) | Item | Change (%) | Primary Reason | | :--- | :--- | :--- | | Cash and Cash Equivalents | 79.35% | Due to increased loans influenced by the pandemic during the reporting period | | Short-term Borrowings | 92.49% | Due to increased borrowing scale in the current period | | Deferred Income Tax Assets | 1,718.68% | Deferred income tax assets recognized for current period losses to be offset in future years | | Advances from Customers | -99.97% | Reclassified to contract liabilities due to the adoption of new revenue standards | | Contract Liabilities | Not Applicable | Due to the adoption of new revenue standards | Major Income Statement Item Changes (Compared to Prior Year) | Item | Change (%) | Primary Reason | | :--- | :--- | :--- | | Operating Revenue | -44.86% | Significant reduction in flight volume due to the pandemic | | Operating Costs | -30.74% | Significant reduction in flight volume due to the pandemic | | Finance Costs | 61.55% | Due to increased interest expenses in the current period | | Investment Income | 8,481.62% | Due to cash dividends received in the current period | | Non-operating Expenses | 1,462.29% | Increased pandemic-related donation expenses in the current period | Major Cash Flow Statement Item Changes (Compared to Prior Year) | Item | Change (%) | Primary Reason | | :--- | :--- | :--- | | Cash Received from Sales of Goods and Services | -44.59% | Due to reduced flight volume influenced by the pandemic | | Cash Paid for Acquisition of Fixed Assets, Intangible Assets, and Other Long-term Assets | -87.55% | Due to reduced investment in aircraft assets in the current period | | Cash Paid for Debt Repayment | 45.26% | Due to increased repayment of matured borrowings in the current period | | Cash Paid for Distribution of Dividends, Profits, or Interest Payments | 139.59% | Increased borrowing scale led to higher interest expenses | Progress of Significant Matters The company's board approved jet fuel futures hedging in March 2020 to mitigate price volatility, with an authorized limit not exceeding 20% of the latest audited net assets, though no actual transactions have been conducted as of the reporting period end - The company's board approved futures hedging operations on March 18, 2020, to hedge against jet fuel price risks[19] - As of the report date, the company has not yet commenced any jet fuel hedging activities[19] Earnings Forecast and Risk Warning The company issued an earnings warning, anticipating a cumulative net loss for the full year 2020 due to significant uncertainties regarding the duration and impact of the COVID-19 pandemic, advising investors to be aware of associated risks - The company anticipates a cumulative net loss for the full year 2020[21] - The primary reasons for the loss forecast are the significant impact of the COVID-19 pandemic on the transportation industry and the uncertainty of its duration[21] Appendix Financial Statements This appendix includes the company's unaudited consolidated and parent company financial statements as of September 30, 2020, comprising the balance sheet, income statement, and cash flow statement, comprehensively reflecting the financial position, operating results, and cash flows for the reporting period Consolidated Balance Sheet As of September 30, 2020, total assets were 33.32 billion yuan, a slight 0.55% increase from the prior year-end, while total liabilities rose 10.18% to 22.25 billion yuan, driven by short-term borrowings, and net assets attributable to shareholders decreased 14.44% to 11.04 billion yuan due to current period losses and changes in other comprehensive income Key Consolidated Balance Sheet Items (September 30, 2020) | Item | Amount (CNY) | Change from Prior Year-End (%) | | :--- | :--- | :--- | | Total Assets | 33,320,601,158.08 | 0.55 | | Cash and Cash Equivalents | 2,909,788,745.53 | 79.35 | | Fixed Assets | 13,104,880,999.45 | -2.06 | | Total Liabilities | 22,249,427,576.99 | 10.18 | | Short-term Borrowings | 6,563,304,272.79 | 92.49 | | Long-term Borrowings | 6,990,867,683.26 | 1.14 | | Equity Attributable to Parent Company Shareholders | 11,036,738,435.67 | -14.44 | Consolidated Income Statement In the first three quarters of 2020, the company's operating revenue was 7.17 billion yuan, a 44.86% year-on-year decrease, leading to an operating loss of 718 million yuan from a prior year profit of 1.58 billion yuan, and a net loss attributable to parent company shareholders of 480 million yuan, despite a Q3 net profit of 196 million yuan indicating some domestic market recovery Key Consolidated Income Statement Items (Q1-Q3 2020) | Item | Q1-Q3 2020 (CNY) | Q1-Q3 2019 (CNY) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 7,169,949,438.15 | 13,003,732,151.55 | -44.86 | | Total Operating Costs | 8,395,830,477.67 | 11,725,124,805.73 | -28.39 | | Operating Profit | -717,968,403.67 | 1,584,557,718.62 | -145.31 | | Total Profit | -645,552,183.47 | 1,678,032,340.45 | -138.47 | | Net Profit | -490,167,293.48 | 1,243,986,167.33 | -139.40 | | Net Profit Attributable to Parent Company Shareholders | -479,701,390.62 | 1,224,135,078.77 | -139.19 | Consolidated Cash Flow Statement In the first three quarters of 2020, net cash flow from operating activities significantly deteriorated to -58 million yuan from a 2.42 billion yuan inflow in the prior year, primarily due to reduced ticket revenue from the pandemic, while net cash outflow from investing activities narrowed to 513 million yuan due to reduced long-term asset investments, and net cash inflow from financing activities was 1.98 billion yuan, mainly from increased borrowings to maintain liquidity Key Consolidated Cash Flow Statement Items (Q1-Q3 2020) | Item | Q1-Q3 2020 (CNY) | Q1-Q3 2019 (CNY) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -58,428,231.84 | 2,420,021,876.46 | | Net Cash Flow from Investing Activities | -513,182,857.28 | -8,510,509,167.30 | | Net Cash Flow from Financing Activities | 1,983,862,368.61 | 7,081,105,212.62 | | Net Increase in Cash and Cash Equivalents | 1,456,912,029.78 | 1,025,341,583.29 | Accounting Standard Change Adjustments Effective January 1, 2020, the company adopted new revenue standards, retrospectively adjusting financial statements at the initial adoption date by reclassifying contract-related advances from "Advances from Customers" to "Contract Liabilities" and "Other Current Liabilities," without impacting total assets or net assets - The company first adopted the new revenue standard effective January 1, 2020, and made corresponding adjustments to its opening financial statements[54][58] Impact of New Revenue Standard Adoption on Opening Consolidated Balance Sheet | Item | Before Adjustment (2019-12-31) | After Adjustment (2020-01-01) | Adjustment Amount | | :--- | :--- | :--- | :--- | | Advances from Customers | 1,159,947,713.37 | 299,698.00 | -1,159,648,015.37 | | Contract Liabilities | 0.00 | 1,140,064,321.21 | 1,140,064,321.21 | | Other Current Liabilities | 0.00 | 1,386,380.87 | 1,386,380.87 | | Deferred Income | 12,522,962.69 | 0.00 | -12,522,962.69 | | Retained Earnings | 5,105,549,531.09 | 5,129,812,748.26 | 24,263,217.17 |