Group 1: Market Position and Competition - The company emphasizes that regional aviation and high-speed rail serve different travel needs, with most of its routes not overlapping with high-speed rail lines [1] - Regional aviation primarily caters to lower-density cities, while high-speed rail connects densely populated urban areas [1] - The company has developed a regional aviation hub model centered around cities like Quzhou to enhance its route network [1] Group 2: Industry Growth and Demand - The overall airport throughput growth rate during the 13th Five-Year Plan period is approximately 10%, with regional airport throughput growing at about twice that rate [2] - By 2035, the number of transport airports in China is expected to reach around 450, with most new airports being regional [2] - The demand for air travel in regional cities is projected to continue growing due to rising economic levels and consumer spending [2] Group 3: Financial Performance - In 2024, the company's operating revenue reached CNY 669,560,000, a year-on-year increase of 29.98% [3] - The net profit attributable to shareholders was CNY 26,797,300, reflecting a year-on-year growth of 127.77% [3] Group 4: Operational Efficiency - The average aircraft utilization rate in Q1 2025 was 8 hours, an increase of 0.9 hours year-on-year [3] - The company aims to enhance aircraft utilization to reduce fixed costs associated with leasing and depreciation [4] Group 5: Regulatory Changes and Support - The revised subsidy management measures for regional aviation, effective from January 1, 2024, increase support for economically underdeveloped areas [4] - The new subsidy method shifts from passenger transport volume to actual flight hours, benefiting airlines operating regional routes [4] - In 2024, the proportion of capacity in subsidized routes increased by 4.4 percentage points [4] Group 6: Challenges and Solutions - The company faces challenges in profitability due to the nature of regional aviation, where low passenger volumes hinder route development [5] - Local governments and airports are collaborating with airlines through capacity purchase agreements to stimulate market growth and ensure economic viability [6]