JUNEYAOAIR(SH:603885)2023-04-17 16:00Financial Performance - The company's operating revenue for 2022 was ¥8,210,348,380.23, a decrease of 30.23% compared to the previous year[18]. - The net profit attributable to shareholders for 2022 was -¥4,147,879,747.71, indicating a significant loss compared to -¥477,255,471.66 in 2021[18]. - The basic earnings per share for 2022 was -¥2.03, a decline from -¥0.24 in 2021[20]. - The total assets at the end of 2022 were ¥45,147,251,216.81, an increase of 2.17% from the previous year[19]. - The net cash flow from operating activities for 2022 was ¥207,861,725.16, down 86.52% from ¥1,542,389,046.26 in 2021[18]. - The weighted average return on equity for 2022 was -44.11%, a decrease of 39.53 percentage points from the previous year[20]. - The company reported a net profit of -¥1,340,522,654.84 in Q2 2022, reflecting ongoing financial challenges[22]. - The total non-recurring profit and loss for 2022 was 9,627,053.45 yuan, significantly lower than 188,528,068.47 yuan in 2021[25]. - The company reported a significant increase in revenue, achieving a total of $1.5 billion, representing a 20% year-over-year growth[154]. - The company reported a net profit of CNY -67,178.77 million for the fiscal year ending December 31, 2022, indicating ongoing financial challenges[114]. Operational Performance - The company faced multiple adverse factors impacting its operational performance in 2022[4]. - The company's available ton-kilometers decreased by 34.43% to 278,393.11 million kilometers in 2022 from 424,603.39 million kilometers in 2021[28]. - The passenger count dropped by 44.64% to 10,210.78 thousand in 2022 compared to 18,442.98 thousand in 2021[29]. - The revenue ton-kilometers fell by 40.93% to 154,330.61 million kilometers in 2022 from 261,276.01 million kilometers in 2021[28]. - The cargo and mail volume decreased by 30.75% to 74,812.37 tons in 2022 from 108,034.70 tons in 2021[29]. - The operating routes decreased to 274 from 295 in 2021, a reduction of 21 routes[30]. - The average aircraft utilization rate dropped to 5.22 hours per day in 2022 from 8.35 hours in 2021[30]. - The company reported a flight operation of 155,600 hours and a total transportation turnover of 1.154 billion ton-kilometers in 2022[42]. - The company aims to achieve a recovery of approximately 75% of its 2019 operational levels in 2023, with a target of 460 million passengers transported[40]. - The company is actively working on restoring international flights and optimizing daily routes based on market demand[58]. Risk Management - The company has detailed potential risks in the "Management Discussion and Analysis" section of the report[5]. - The company emphasizes the importance of investment risk awareness for investors regarding forward-looking statements[4]. - The company has established a dual prevention system for risk management and hidden danger investigation, enhancing its overall safety management framework[61]. - The company is closely monitoring macroeconomic conditions and international trade relations to adapt its capacity and market strategies accordingly[145]. - The company has established a comprehensive risk management system, enhancing financial data analysis and fund usage supervision[187]. Governance and Compliance - The company has confirmed that there are no non-operational fund occupations by controlling shareholders or related parties[4]. - The company has not violated decision-making procedures for external guarantees[4]. - The audit report issued by Dahua Accounting Firm is a standard unqualified opinion[4]. - The financial report is guaranteed to be true, accurate, and complete by the responsible executives[4]. - The company has a comprehensive governance structure with all board members present at the meeting[4]. - The company held its annual general meeting on June 22, 2022, to discuss the 2021 annual report and financial statements[149]. - The company has appointed auditing firms for the 2022 financial report and internal control audit[149]. - The internal control audit report issued by Da Hua Accounting Firm confirmed the effectiveness of the internal control system with a standard unqualified opinion[188]. Strategic Initiatives - The board of directors has proposed a profit distribution plan considering the company's long-term development and future cash needs[4]. - The company plans to expand its fleet in 2023, with an expected net increase of 12 aircraft, bringing the total to 95 for Juneyao Airlines and 27 for Juneyao Airlines[35]. - The company is focusing on expanding its market presence through strategic acquisitions and investments in the aviation sector[101]. - The company plans to enhance its safety management system and digital transformation in 2023, focusing on risk prevention and control mechanisms[120]. - The company aims to strengthen its hub construction and expand its route network, particularly in the southwestern and central-southern regions of China, while resuming international routes[125]. Customer Engagement and Marketing - The company has introduced new international routes, including Helsinki, Seoul, Osaka, Tokyo, Singapore, Taipei, Hong Kong, and Macau, enhancing its market presence[42]. - The company launched several innovative products, including themed marketing cards, to meet diverse customer needs and increase ancillary revenue[58]. - The company is investing $50 million in research and development for new technologies aimed at enhancing user experience[154]. - The company is focusing on enhancing its operational efficiency and cost structure to improve profitability in the competitive airline market[119]. - The company aims to enhance international marketing capabilities by identifying potential domestic sources for intercontinental routes and improving sales organization[129]. Employee and Management Structure - The total number of employees in the parent company and major subsidiaries is 9,371, with 7,270 in the parent company and 2,101 in major subsidiaries[175]. - The number of pilots is 1,774, and the number of cabin crew is 2,964, indicating a significant workforce in operational roles[175]. - The company organized 7 training programs in 2022, with a total of 1,617 participants, enhancing overall employee skills and management capabilities[178]. - The company has a market-oriented compensation policy to enhance competitiveness and attract talent, with annual performance assessments in place[177]. - The company has implemented a performance-based remuneration system for directors, supervisors, and senior management, linked to annual assessment results[164]. Environmental and Sustainability Efforts - The company is committed to achieving carbon neutrality by 2025, with strategies to reduce fuel consumption and implement sustainable development projects[135]. - The company has launched its first low-carbon economy class product, contributing positively to carbon emission control and revenue generation[190]. - The company has developed a sustainable green development strategy in line with the Civil Aviation Administration's 2025 goals[191]. Shareholder Commitments - The actual controller and shareholders committed to not transferring shares for 36 months after registration[194]. - The company guarantees the authenticity and completeness of all materials provided during the transaction, assuming legal responsibility[194]. - The commitment to avoid competition is effective long-term and has been strictly adhered to, ensuring compliance with legal and regulatory requirements[200]. - The company has established a priority purchase right for any new competitive business that meets the criteria for injection into the listed company, ensuring fair treatment in any potential sale[200].