Zheng Quan Shi Bao Wang·2025-10-31 06:37Core Viewpoint - China National Airlines (601111.SH) plans to issue A-shares to its controlling shareholder, China Aviation Group, to raise up to RMB 20 billion for debt repayment and working capital, reflecting confidence in the company's future amid the aviation industry's recovery [2][4]. Group 1: Financial Performance - For the first nine months of 2025, China National Airlines reported revenue of RMB 129.83 billion, a year-on-year increase of 1.31% [3]. - The net profit attributable to shareholders reached RMB 1.87 billion, showing a significant year-on-year growth of 37.31%, indicating improved profitability [3]. Group 2: Capital Strengthening - The planned A-share issuance will be fully subscribed by China Aviation Group and its subsidiary, China Aviation Capital, through cash payments [4]. - The funds raised will be used entirely for debt repayment and enhancing working capital, which will help optimize the company's capital structure and reduce financial costs [4]. Group 3: Strategic Development - China National Airlines aims to build a globally competitive world-class airline group, focusing on resource optimization and hub network development while supporting domestic aircraft manufacturing and the Belt and Road Initiative [5]. - The full subscription of the new shares by the controlling shareholder signifies recognition of the company's current performance and long-term strategic support [5]. Group 4: Industry Outlook - The aviation industry is expected to enter a new growth cycle as domestic travel demand continues to rise and international routes recover [7]. - The support from the controlling shareholder is anticipated to enhance market competitiveness and position the company favorably in the recovering industry [7].