香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內 容 概 不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示，概 不對因本公告全部或任何部份內容而產生或因倚賴該等內容而引致的 任 何 損 失 承 擔 任 何 責 任。 （ 在 中 華 人 民 共 和 國 註 冊 成 立 的 股 份 有 限 公 司 ） （股份代號：1055） 2025年第一季度報告 摘 要 中 國 南 方 航 空 股 份 有 限 公 司（「本公司」，連 同 其 附 屬 公 司 合 稱「本集團」） 2025年 第 一 季 度（即2025年1-3月（「報告期」）財 務 報 告 乃 根 據 中 國 會 計 準 則 編 製，且 未 經 審 計。 本 公 告 乃 根 據《香 港 聯 合 交 易 所 有 限 公 司 證 券 上 市 規 則》第13.09及 13.10B條 而 作 出。 重 要 內 容 提 示： 中 國 南 方 航 空 股 份 有 限 公 司（以 下 簡 稱「本公司」、「公 司」）董 事 會、監 事 會 及 董 事、監 事、高 級 管 理 人 員 保 證 季 度 報 告 內 容 的 ...

目錄 關於我們 002 釋義 004 公司簡介 005 公司資料 經營業績 008 主要會計資料和財務指標 016 全年大事記 020 管理層討論與分析 企業管治 | 051 | 董事會報告 | | --- | --- | | 068 | 股份變動、股東情況及權益披露 | | 074 | 董事、監事、高級管理人員和員工情況 | | 087 | 公司治理報告 | | 102 | 環境與社會責任 | | 115 | 重要事項 | | 124 | 風險管理及內部控制 | 財務報告 按照國際財務報告準則編製之財務報表 128 獨立核數師報告 133 合併利潤表 134 合併綜合收益表 135 合併財務狀況表 137 合併權益變動表 138 合併現金流量表 139 財務報表附註 248 財務補充資料 252 五年財務摘要 釋義 在本報告中，除非文義另有所指，下列詞語具有如下含義： | 本公司、公司、南航、 | 中國南方航空股份有限公司 | | --- | --- | | 南方航空 | | | 本集團 | 中國南方航空股份有限公司及控股子公司 | | 南航集團 | 中國南方航空集團有限公司 | | 廈門航空、廈航 | 廈 ...

Financial Performance - Total operating revenue for the year ended December 31, 2024, was RMB 174,224 million, an increase of 8.06% from RMB 159,929 million in 2023[4] - Transportation revenue reached RMB 165,145 million, up 9.06% from RMB 151,445 million in the previous year[4] - The company reported a net profit of RMB 25 million for 2024, a significant recovery from a net loss of RMB 2,957 million in 2023[5] - Basic and diluted loss per share improved to RMB 0.10 from RMB 0.23 in the previous year[5] - The company reported a net loss of RMB 1,769 million for the year ending December 31, 2024, with total comprehensive income amounting to a loss of RMB 60 million[10] - The company’s net profit for the year ending December 31, 2023, was a loss of RMB 4,140 million, resulting in a total comprehensive loss of RMB 3,040 million[9] - The company reported a net profit of RMB 154 million for the fiscal year ending December 31, 2024, compared to a net loss of RMB 3,082 million in 2023, indicating a substantial improvement in profitability[32][33] - The net loss attributable to equity holders for 2024 was RMB 1,769 million, compared to a net loss of RMB 4,140 million in 2023, indicating a significant improvement[84] Operating Expenses - Operating expenses totaled RMB 171,806 million, reflecting an increase of 8.06% compared to RMB 159,052 million in 2023[5] - Operating expenses for flights rose to RMB 83,046 million in 2024, up from RMB 76,799 million in 2023, representing an increase of about 8.5%[44] - Fuel costs increased to RMB 54,989 million in 2024 from RMB 52,050 million in 2023, marking a rise of approximately 5.6%[44] - Operating expenses for 2024 totaled RMB 171,806 million, an increase of 8.14% from RMB 159,052 million in 2023[91] - Flight operating expenses accounted for 48.34% of total operating expenses, rising 8.13% from RMB 76,799 million in 2023 to RMB 83,046 million in 2024, primarily due to increased flight volume and fuel costs[91] Assets and Liabilities - Non-current assets increased to RMB 292,216 million as of December 31, 2024, compared to RMB 281,657 million in 2023[7] - Current liabilities rose to RMB 138,402 million, up from RMB 134,934 million in the previous year[8] - Total assets less current liabilities increased to RMB 191,577 million from RMB 174,662 million in 2023[8] - The total liabilities increased from RMB 129,436 million to RMB 134,934 million due to the reclassification of convertible bonds as current liabilities[20] - The total assets as of December 31, 2024, amounted to RMB 329,738 million, up from RMB 309,226 million in 2023, representing an increase of 6.65%[64] - The company's total liabilities rose to RMB 277,143 million in 2024, compared to RMB 257,229 million in 2023, marking an increase of 7.73%[66] Revenue Growth - The total revenue from customer contracts for 2024 is projected to be RMB 173,838 million, compared to RMB 159,566 million in 2023, indicating a growth of approximately 8.9%[26] - The revenue from cargo operations increased from RMB 15,275 million in 2023 to RMB 18,695 million in 2024, reflecting a growth of about 22.5%[26] - International passenger revenue surged by 52.64% from RMB 21,616 million in 2023 to RMB 32,994 million in 2024[89] - Cargo and mail revenue increased by 22.39% to RMB 18,695 million in 2024, up from RMB 15,275 million in 2023, due to rising international demand[89] Market and Operational Strategy - The company plans to continue expanding its market presence and investing in new technologies to enhance operational efficiency[3] - The company has implemented a strategy to enhance market competitiveness, focusing on optimizing operational efficiency and customer segmentation[72] - The company aims to enhance core competitiveness and achieve high-quality development, focusing on sustainable and safe operations[120] - The company plans to deepen safety management systems and improve safety quality, targeting a stable safety status by 2025[121] Cash Flow and Investments - The company’s cash and cash equivalents increased to RMB 12,984 million, up from RMB 9,531 million in 2023[7] - The company added non-current assets worth RMB 40,788 million in 2024, significantly higher than the RMB 28,099 million added in 2023, indicating a strong investment in growth[32][35] - The group reported a net current liability of RMB 106,995 million as of December 31, 2023, an increase from RMB 101,497 million[20] Shareholder Equity - As of December 31, 2023, total equity attributable to the company's shareholders was RMB 37,071 million, a decrease from RMB 41,275 million at the beginning of the year[9] - By December 31, 2024, total equity attributable to the company's shareholders was RMB 34,943 million, down from RMB 37,071 million[10] - The total equity attributable to shareholders under Chinese accounting standards as of December 31, 2024, is RMB 34,729 million, down from RMB 36,784 million in 2023[68] Safety and Compliance - The company achieved a total of 314.8 million safe flight hours during the reporting period, maintaining a leading safety level in the Chinese civil aviation sector[71] - The company received an AA rating from China National New ESG evaluation, highlighting its commitment to sustainable development[76] Future Outlook - The global economic growth forecast for 2025 is projected at 3.3%, with China's economy expected to remain stable and resilient[119] - The group has committed to expanding domestic demand and stabilizing expectations through proactive macroeconomic policies[119]

Investment Rating - The investment rating for China Southern Airlines is "Accumulate" [2][5]. Core Views - The report indicates that the supply and demand in the industry are expected to continue recovering, with the company poised to reduce losses in its main operations. The construction of the Beijing Daxing hub is anticipated to elevate the profit center [4][5]. - The company has significant profit elasticity and benefits from a potential decline in oil prices, which could enhance profitability during peak seasons [5]. Summary by Sections Financial Performance - The net profit for the first half of 2024 is projected at -1.23 billion RMB, with a significant impact from a nearly 1.4 billion RMB investment loss due to the capital increase in Sichuan Airlines. The main operations are expected to continue reducing losses year-on-year [5]. - The company’s fleet size increased by 6.7% compared to the same period in 2019, with an ASK growth of 6% [5]. - The passenger load factor improved by 6 percentage points year-on-year, surpassing 2019 levels, while seat revenue increased by 4% compared to 2019 [5]. Market Position and Strategy - The company is actively investing in international routes, capitalizing on cross-border e-commerce opportunities, leading to a 4.5 billion RMB increase in logistics profits to 1.7 billion RMB [5]. - The report highlights that if the average fuel procurement price decreases by 10%, the estimated annual net profit increases for China Southern Airlines and other airlines would be 4.2 billion RMB, 4.1 billion RMB, 3.5 billion RMB, 530 million RMB, and 470 million RMB respectively [5]. Long-term Development - The construction of the Beijing Daxing hub is a significant strategic move for China Southern Airlines, as it is the largest base airline at the airport. The company is expected to benefit from new slot allocation policies [5]. - The report anticipates that as supply and demand recover, the profitability of domestic routes will improve, and the long-term profitability of international routes is also expected to enhance [5].

Financial Performance - Operating revenue for the first half of 2024 reached RMB 84,790 million, an increase of 18.04% compared to RMB 71,830 million in the same period of 2023[8]. - The net loss attributable to equity holders of the company decreased by 63.36% to RMB 1,054 million from RMB 2,877 million year-on-year[8]. - Basic and diluted loss per share improved to RMB (0.06) from RMB (0.16), marking a 62.50% reduction in loss per share[8]. - Passenger revenue for the same period was RMB 71,764 million, up 17.73% from RMB 60,958 million in 2023, driven by an increase in passenger numbers[38]. - Cargo and mail revenue increased by 21.59% to RMB 8,730 million, compared to RMB 7,180 million in 2023, attributed to higher cargo volume[39]. - The total operating expenses rose by 16.51% to RMB 84,126 million from RMB 72,204 million in 2023[41]. - The company reported a pre-tax profit of RMB 357 million, compared to a pre-tax loss of RMB 1,764 million in the previous year[160]. - Total comprehensive loss for the period was RMB 538 million, compared to RMB 2,563 million in 2023[162]. Operational Efficiency - Net cash inflow from operating activities was RMB 12,893 million, down 23.40% from RMB 16,831 million in the first half of 2023[8]. - The company’s operational efficiency improved, reducing the number of passengers affected by irregular flights by 171.7 thousand[24]. - The average passenger load factor improved to 83.07%, up 7.30 percentage points from 75.77% in 2023[32]. - The total flight hours increased by 15.82% to 1,536.60 thousand hours from 1,326.73 thousand hours in 2023[33]. - The company’s hub transfer ratios reached 19.8% in Guangzhou and 11.6% in Beijing during the reporting period[25]. Market Expansion and Development - The company plans to continue expanding its market presence and enhancing operational efficiency in the upcoming quarters[8]. - New product and technology developments are underway to improve service offerings and customer experience[8]. - The group plans to accelerate the construction of a world-class enterprise through targeted actions to enhance quality and innovation[16]. - The company plans to expand its fleet, with a focus on the introduction of the C919 aircraft series[36]. Financial Position - Total assets as of June 30, 2024, amounted to RMB 315,422 million, reflecting a 1.88% increase from RMB 309,596 million at the end of 2023[8]. - Equity attributable to equity holders of the company was RMB 35,945 million, a decrease of 3.04% from RMB 37,071 million at the end of 2023[8]. - Total liabilities increased by 2.47% to RMB 263,589 million as of June 30, 2024[45]. - The debt-to-asset ratio as of June 30, 2024, was 83.57%, up 0.48 percentage points from 83.09% on December 31, 2023[47]. - Cash and cash equivalents as of June 30, 2024, were RMB 9,553 million, remaining stable compared to December 31, 2023[44]. Environmental Management - The company’s environmental management practices include being listed as a key pollutant discharge unit in Shenyang, focusing on wastewater, waste gas, and hazardous waste management[90]. - The company has implemented pollution prevention facilities in strict accordance with environmental regulations, ensuring that production facilities operate simultaneously with pollution control measures[94]. - The company has engaged a third-party firm to conduct regular monitoring of pollutants, achieving compliance with emission standards during the reporting period[97]. - The company has developed a carbon account for passengers, recording carbon emissions reductions from actions such as canceling meals and using electronic check-in, with a total of 600 tons of CO2 offset by June 2024[103]. Risk Management - The company faced risks from macroeconomic fluctuations, which directly impact air passenger and cargo demand[60]. - The company is exposed to competition risks from other transportation modes, particularly with the expansion of high-speed rail networks[64]. - A 10% increase or decrease in average fuel prices is projected to affect operating costs by RMB 2,789 million during the reporting period[69]. - The company’s financial risk management includes liquidity, interest rate, foreign exchange, and credit risks[176]. Shareholder and Governance - The company held its 2023 Annual General Meeting on May 24, 2024, where all resolutions were passed by shareholders[79]. - The company’s board confirmed compliance with the corporate governance code throughout the reporting period[86]. - There were no changes in the shareholding of current and departing directors, supervisors, and senior management during the reporting period[84]. - The company has appointed KPMG as the auditor for the 2024 financial reports, approved by the shareholders' meeting on May 24, 2024[118]. Future Commitments - The company has committed to purchasing a total of 6 ARJ21 aircraft, 136 A320NEO series aircraft, and 100 C919 series aircraft, which are yet to be delivered[11]. - The company has committed to a lock-up period of 6 months for shares held prior to the IPO of Southern Airlines Logistics, contingent on profit performance[116]. - The company plans to transfer four cargo aircraft to Southern Airlines Cargo in 2024, subject to regulatory approvals, and will support the transfer of ownership and operational rights[114].

Financial Performance - China Southern Airlines reported its unaudited interim results for the six months ended June 30, 2024[1]. - The company achieved a passenger turnover of 100 billion RPK, representing a year-on-year increase of 15%[2]. - Revenue from passenger transport reached 50 billion RMB, a 20% increase compared to the previous year[5]. - Operating revenue for the first half of 2024 reached RMB 84,790 million, an increase of 18.04% compared to RMB 71,830 million in the same period of 2023[10]. - The net loss attributable to equity holders of the company improved to RMB (1,054) million, a 63.36% reduction from RMB (2,877) million in the first half of 2023[10]. - Basic and diluted loss per share improved to RMB (0.06) from RMB (0.16), reflecting a 62.50% reduction in loss per share[11]. - The company reported a net loss of RMB 408 million for the six months ended June 30, 2024, significantly improved from a net loss of RMB 2,481 million in the prior year[162]. - Transportation revenue reached RMB 80,494 million, up 18% from RMB 68,138 million year-over-year[161]. Capacity and Operations - The available seat kilometers (ASK) increased by 12% to 120 billion, indicating a strong capacity expansion[3]. - The load factor improved to 82%, up from 78% in the same period last year[4]. - The total passenger kilometers (RPK) increased by 33.46% to 145,636.90 million compared to 109,127.69 million in the same period last year[31]. - The international RPK saw a significant rise of 178.14%, reaching 32,570.62 million from 11,710.03 million[31]. - The total available seat kilometers (ASK) grew by 21.72% to 175,321.27 million from 144,030.87 million year-on-year[32]. - The average passenger load factor improved by 7.30 percentage points to 83.07% from 75.77%[33]. - The company plans to expand its fleet by adding 20 new aircraft in the next 12 months[6]. - Total flight kilometers for the first half of 2024 were 962.74 million, a 17.40% increase from 820.05 million kilometers in the same period of 2023[34]. Financial Position and Assets - Total assets as of June 30, 2024, amounted to RMB 315,422 million, a 1.88% increase from RMB 309,596 million at the end of 2023[10]. - The equity attributable to equity holders of the company as of June 30, 2024, was RMB 35,945 million, a decrease of 3.04% from RMB 37,071 million at the end of 2023[10]. - Total liabilities increased by 2.47% to RMB 263,589 million as of June 30, 2024[45]. - The asset-liability ratio as of June 30, 2024, was 83.57%, up 0.48 percentage points from 83.09% on December 31, 2023[47]. - The company’s total equity decreased to RMB 51,833 million from RMB 52,367 million, a decline of 1.02%[164]. Cash Flow and Investments - Net cash inflow from operating activities decreased by 23.40% to RMB 12,893 million, down from RMB 16,831 million in the same period last year[10]. - Cash and cash equivalents stood at RMB 9,553 million, slightly up from RMB 9,531 million, indicating a marginal increase of 0.23%[163]. - The company recorded a net increase in cash and cash equivalents of RMB 27 million for the six months ended June 30, 2024, contrasting with a net decrease of RMB 6,863 million in the same period of 2023[167]. - Net cash outflow from investing activities was RMB 9,776 million, compared to RMB 4,505 million in the previous year, indicating a significant increase in investment expenditures[167]. Strategic Initiatives - The company is exploring potential mergers and acquisitions to enhance its market position in Asia[8]. - Future guidance indicates a projected revenue growth of 10-15% for the second half of 2024[9]. - The company is focusing on enhancing its digital services to improve customer experience and engagement[10]. - The company has set a target to build a world-class aviation transport enterprise by 2025, focusing on core aviation transport and collaborative development with pillar industries[19]. - The company is actively promoting digital transformation and enhancing its IT research and development ecosystem[28]. Environmental and Social Responsibility - The company adheres to green development principles and continuously improves pollution prevention and environmental management levels[86]. - The company achieved a significant reduction in carbon emissions, with fuel consumption per ton-kilometer decreasing to 2.572 tons per 10,000 ton-kilometers[102]. - The company has established an emergency management system for environmental incidents, enhancing its response capabilities[99]. - The company has engaged in various charitable projects, including the "Standing Plan" and "Angel Journey," to support children in need[105]. Risk Management and Compliance - The company has not made any additional disclosures in the interim financial report regarding the new disclosure requirements introduced by the amendments to IFRS 7[175]. - The company’s risk management policies have remained unchanged since December 31, 2023[176]. - There were no bankruptcy restructuring matters during the reporting period[116]. - The company did not face any significant litigation or arbitration matters during the reporting period[116].

Financial Performance - Operating revenue for Q1 2024 reached RMB 44,601 million, an increase of 30.97% compared to the same period last year[4]. - Net profit attributable to shareholders was RMB 756 million, with a significant recovery in passenger revenue due to the improving air travel market[4][7]. - The net profit for Q1 2024 was RMB 1,256 million, a significant recovery from a net loss of RMB 1,724 million in Q1 2023[22]. - The operating profit for Q1 2024 was RMB 1,519 million, compared to an operating loss of RMB 1,467 million in the same quarter last year[20]. - The revenue for Q1 2024 reached RMB 44,601 million, up from RMB 34,055 million in Q1 2023, marking a growth of 31%[19]. - The earnings per share for Q1 2024 was RMB 0.04, recovering from a loss of RMB 0.10 per share in Q1 2023[22]. Cash Flow and Liquidity - Net cash flow from operating activities amounted to RMB 9,777 million, reflecting an 11.00% increase year-on-year[4]. - In Q1 2024, cash inflow from operating activities was RMB 49,919 million, up from RMB 38,946 million in Q1 2023, representing a 28.5% increase[23]. - The cash inflow from investment activities was RMB 327 million in Q1 2024, down from RMB 987 million in Q1 2023, indicating a decrease of 66.9%[24]. - The ending cash and cash equivalents balance for Q1 2024 was RMB 9,692 million, down from RMB 18,948 million in Q1 2023[25]. - The company received RMB 1,529 million in other cash related to operating activities in Q1 2024, compared to RMB 856 million in Q1 2023, marking an increase of 78.5%[23]. - The company paid RMB 1,088 million in taxes in Q1 2024, an increase from RMB 737 million in Q1 2023, representing a 47.5% rise[24]. Assets and Liabilities - Total assets at the end of the reporting period were RMB 313,729 million, up 1.46% from the end of the previous year[4]. - The total assets increased to RMB 313,729 million as of March 31, 2024, up from RMB 309,226 million on December 31, 2023, representing a growth of 1.62%[18]. - The total liabilities rose to RMB 260,476 million as of March 31, 2024, compared to RMB 257,229 million at the end of 2023, indicating an increase of 0.87%[17]. - Accounts receivable rose to RMB 4,406 million, up from RMB 3,322 million, indicating an increase of about 32.6%[14]. - The company’s inventory increased to RMB 1,798 million from RMB 1,565 million, marking a rise of approximately 14.9%[15]. - The company’s total non-current assets include fixed assets valued at RMB 93,271 million, slightly up from RMB 93,076 million[15]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 170,953[8]. - The largest shareholder, China Southern Airlines Group Co., Ltd., holds 51.90% of the shares[8]. - The company reported a total of 2,648,836,036 shares held by related shareholders through subsidiaries, indicating significant ownership concentration[9]. Future Outlook - The company is focusing on expanding its passenger services as the market continues to recover[7]. - Future outlook remains positive with expectations of continued growth in passenger revenue[7]. Investment and Guarantees - The company provided guarantees totaling USD 54.39 million for 43 SPVs, equivalent to approximately RMB 385.90 million based on the exchange rate of 7.0950[12]. - The company has established SPVs with guaranteed amounts, including USD 5.88 million for SPV 9 and USD 5.17 million for SPV 10, among others[10]. - Long-term equity investments increased to RMB 6,848 million from RMB 6,718 million, showing a growth of about 1.9%[15]. Other Financial Metrics - The weighted average return on equity increased by 5.21 percentage points to 2.03%[4][7]. - The company reported non-recurring gains and losses totaling RMB 210 million for the period[5].

Fleet and Operations - China Southern Airlines operates a fleet of 908 aircraft, including Boeing 787, 777, 737 series, and Airbus A350, 330, 320 series[6]. - The company has 20 subsidiaries and 7 holding airline subsidiaries, with 52 overseas offices globally[6]. - The fleet size reached 908 aircraft, with 37 new deliveries and 23 retirements during the reporting period[17]. - The average age of the fleet is 9.2 years, with an overall load factor of 66.4%[69]. - The company achieved a total flight time of 2.842 million hours and transported 142 million passengers in 2023, marking a significant operational recovery[26]. Financial Performance - The company's operating revenue for 2023 reached RMB 159,929 million, an increase of 83.70% compared to RMB 87,059 million in 2022[10]. - The net loss attributable to equity holders of the company was RMB (4,140) million, a significant improvement of 87.34% from RMB (32,699) million in the previous year[10]. - Operating expenses rose by 37.99% to RMB 159,052 million in 2023, compared to RMB 115,262 million in 2022[46]. - The company achieved operating profit of RMB 5,557 million in 2023, a turnaround from an operating loss of RMB 22,542 million in 2022[46]. - Passenger revenue reached RMB 136,170 million in 2023, a 126.89% increase from RMB 60,017 million in 2022[47]. Market Presence and Strategy - The company aims to enhance its strategic market presence and develop a hub-centric network structure[6]. - In 2023, the company focused on deepening its presence in the Guangdong-Hong Kong-Macao Greater Bay Area and optimizing its Beijing hub operations[6]. - The company plans to continue expanding its market presence and enhancing its operational efficiency through new strategies and technologies[12]. - The company plans to expand its international route network, having launched a new direct flight from Beijing Daxing to Istanbul[19]. - The company aims to enhance its brand service with the launch of the upgraded "Southern Airlines Express" service[20]. Safety and Awards - The company received the highest safety award in civil aviation in China, the "Diamond Three-Star Award for Flight Safety," in January 2024[6]. - The group achieved a total of 2.842 million safe flight hours during the reporting period, maintaining a leading safety level in the industry[27]. - The group has maintained a stable quality of operations and improved brand image, winning the "Best Airline Award" for six consecutive years[114]. Customer and Passenger Metrics - The number of passengers carried increased to 142,201.09 thousand, representing a growth of 127.02% from 62,637.12 thousand in 2022[13]. - The average passenger load factor improved to 78.09%, up by 11.74 percentage points from 66.35% in 2022[14]. - Passenger traffic during the summer season exceeded 26 million, surpassing pre-pandemic levels from 2019[19]. - Customer and frequent flyer numbers reached 29,000 and 99.06 million respectively, with cargo and mail transport volume increasing by 19.47% year-on-year[28]. Cargo and Mail Operations - The cargo volume transported increased by 19.47% to 1,584.92 thousand tons compared to 1,326.66 thousand tons in 2022[13]. - Cargo and mail revenue decreased by 26.86% to RMB 15,275 million in 2023, down from RMB 20,884 million in 2022[47]. - The average revenue per available ton kilometer decreased by 33.57% to RMB 1.88, indicating challenges in the cargo segment[15]. Digital Transformation and Innovation - The group is advancing digital transformation with a new IT architecture, promoting automated flight scheduling[30]. - The company has established a digital operation and management model focusing on five key business areas, enhancing operational efficiency and service quality[44]. - The group added 115 new national authorized patents during the reporting period, enhancing its technological innovation capabilities[31]. Future Outlook and Plans - The company aims to establish a world-class airline by 2025, focusing on core air transport operations and collaborative development with pillar industries[42]. - The company plans to deliver a total of 82 aircraft in 2024, with a projected fleet size of 948 by year-end[94]. - The company plans to enhance market competitiveness by improving customer engagement and expanding product offerings, while also transitioning to a full-value chain logistics service provider[90]. - The company anticipates global economic growth of 3.1% in 2024, with a resilient and vibrant Chinese economy supporting its strategic objectives[88]. Share Issuance and Capital Structure - The company plans to issue up to 5,436,269,319 new A-shares, raising a total of up to RMB 17,500 million for purchasing new aircraft and supplementing working capital[153]. - The company will also issue up to 855,028,969 new H-shares, raising up to HKD 2,900 million for general operating funds[153]. - The total number of shares as of December 31, 2023, is 18,120,906,806, with 803,571,428 shares subject to limited sale conditions, representing 4.43% of total shares[163]. - The company has received necessary approvals for the issuance of A-shares and H-shares from relevant authorities[157]. Employee Metrics - As of December 31, 2023, the total number of employees in the group is 99,468, an increase of 1,569 from 97,899 on December 31, 2022, representing a growth of approximately 1.6%[198]. - The breakdown of employees by category includes 11,590 pilots, 40,314 service staff, 6,809 management, 1,414 operations, 12,080 technical staff, 1,640 information technology, 4,620 marketing, 14,853 comprehensive roles, and 6,148 functional roles, totaling 99,468 employees[200].

Financial Performance - Total operating revenue for 2023 reached RMB 159,929 million, a significant increase from RMB 87,059 million in 2022, representing an increase of 83.3%[2] - Operating expenses totaled RMB 159,052 million in 2023, up from RMB 115,262 million in 2022, reflecting a rise of 38.0%[3] - The company reported an operating profit of RMB 5,557 million for 2023, a turnaround from an operating loss of RMB 22,542 million in 2022[3] - Net loss for the year was RMB 2,957 million, a substantial improvement compared to a net loss of RMB 33,716 million in the previous year[4] - Basic and diluted loss per share improved to RMB (0.23) in 2023 from RMB (1.90) in 2022[3] - The total comprehensive income for the year was a net loss of (32,699) million, compared to (33,608) million in the previous year, indicating a slight improvement[11] - The company reported a decrease in total comprehensive income, with a loss of (36,900) million as of December 31, 2023, compared to (32,760) million in the previous year[11] - The net loss attributable to shareholders for 2023 was RMB 4,209 million, compared to a net loss of RMB 32,682 million in 2022, showing significant improvement[65] Assets and Liabilities - Non-current assets as of December 31, 2023, amounted to RMB 281,657 million, slightly up from RMB 278,792 million in 2022[6] - Current assets decreased to RMB 27,939 million in 2023 from RMB 33,454 million in 2022, indicating a decline of 16.5%[6] - Total liabilities decreased to RMB 129,436 million in 2023 from RMB 141,458 million in 2022, a reduction of 8.5%[8] - The company’s total equity as of December 31, 2023, was RMB 52,367 million, down from RMB 55,359 million in 2022[8] - As of December 31, 2023, the total assets amounted to RMB 96,976 million, an increase from RMB 86,514 million on December 31, 2022, reflecting a growth of approximately 12.5%[43] - The total amount of borrowings as of December 31, 2023, is RMB 116,216 million, down from RMB 119,780 million in 2022, indicating a reduction of about 3.1%[53] - The total liabilities as of December 31, 2023, were RMB 257,229 million, consistent with the total liabilities reported for December 31, 2022[32] Revenue Breakdown - Passenger revenue for 2023 was RMB 136,170 million, significantly up from RMB 60,017 million in 2022, marking a growth of 127.3%[22] - The total revenue from domestic operations in 2023 was RMB 122,933 million, significantly up from RMB 57,256 million in 2022, indicating a growth of approximately 114%[30] - Passenger load factor rose by 11.74 percentage points to 78.09% in 2023, compared to 66.35% in 2022[82] - Revenue per available seat kilometer (RPK) decreased by 6.78% to RMB 0.55 in 2023 from RMB 0.59 in 2022[82] - Revenue per ton kilometer (RTK) increased by 2.83% to RMB 5.08 in 2023, up from RMB 4.94 in 2022[82] Operational Efficiency - The company plans to focus on expanding its market presence and enhancing operational efficiency in the upcoming year[1] - The company continues to focus on its core aviation business, including passenger and cargo transport services[12] - The group achieved a flight safety record of 2.842 million hours, maintaining a leading safety level in the industry[67] - The company aims to enhance safety management through digital transformation and strict management of safety personnel, maintaining a stable safety status in 2024[108] - The company plans to improve market competitiveness by enhancing core network connectivity and developing a comprehensive customer management system[109] Taxation and Financial Management - The income tax expense for 2023 was RMB 1,436 million, a decrease of 33.7% from RMB 2,166 million in 2022[37] - The effective income tax rate for the company and its subsidiaries in China remained between 15% to 25% for both 2023 and 2022[37] - The company recognized deferred tax assets from unused tax losses and deductible temporary differences amounting to RMB 1,345 million in 2023, down from RMB 6,956 million in 2022[38] - The company reported a decrease in tax expenses due to non-deductible expenses of RMB 109 million in 2023, compared to RMB 90 million in 2022[38] Future Outlook and Strategic Initiatives - The company plans to continue expanding its market presence and investing in new technologies to enhance operational efficiency and asset utilization[44] - Strategic initiatives include high-quality development goals and expanding into emerging industries, particularly enhancing capabilities at Beijing hub and Daxing Airport[111] - The International Monetary Fund forecasts a global economic growth of 3.1% for 2024, with challenges from tightening monetary policies and geopolitical conflicts[107] Shareholder Information - The company did not recommend any dividends for the years ended December 31, 2023, and 2022[41] - The total number of shares as of December 31, 2023, was 18,120,892,710, with no repurchase or redemption of shares during the year[103] - The company confirmed compliance with the Hong Kong Stock Exchange's Listing Rules throughout the year ended December 31, 2023[105]

Financial Performance - Operating revenue for Q3 2023 reached RMB 47,661 million, an increase of 62.42% compared to the same period last year[4] - Net profit attributable to shareholders for Q3 2023 was RMB 4,195 million, with a significant recovery in passenger revenue contributing to this result[4] - Net profit attributable to shareholders after deducting non-recurring gains and losses for the year-to-date period was RMB -151 million, reflecting a 99.18% decrease compared to the same period last year[4] - Basic earnings per share for Q3 2023 was RMB 0.23, reflecting improved profitability[4] - Weighted average return on equity for Q3 2023 increased by 22.41 percentage points to 10.43% due to enhanced operational performance[4] - Total operating revenue for the first three quarters of 2023 reached RMB 119,491 million, a significant increase from RMB 70,161 million in the same period of 2022, representing a growth of 70.3%[18] - The net profit for the first three quarters of 2023 was RMB 2,770 million, a turnaround from a net loss of RMB 18,135 million in the same period of 2022[19] - Total comprehensive income for the first three quarters of 2023 reached RMB 2,688 million, a significant improvement from a loss of RMB 18,132 million in the same period of 2022[21] - Basic earnings per share for the first three quarters of 2023 was RMB 0.07, a recovery from a loss of RMB 1.03 per share in the same period of 2022[21] Cash Flow and Liquidity - Cash flow from operating activities for the year-to-date period increased by 406.56% to RMB 36,979 million, indicating a strong recovery in operations[7] - The net cash flow generated from operating activities was RMB 36,979 million, compared to RMB 7,300 million in the first three quarters of 2022, indicating a strong operational performance[23] - The total net cash inflow from operating activities was RMB 138,845 million, compared to RMB 83,901 million in the same period last year, showing a robust increase in cash generation[23] - The net cash flow from investing activities was negative at RMB 6,633 million, worsening from a negative RMB 2,671 million in the previous year, indicating increased investment outflows[24] - The net cash inflow from financing activities was negative at RMB 36,069 million, compared to a negative RMB 11,279 million in the same period of 2022, reflecting higher debt repayments[24] - As of September 30, 2023, the company's cash and cash equivalents amount to RMB 14,435 million, a decrease from RMB 20,240 million as of December 31, 2022[13] - Cash and cash equivalents at the end of the period stood at RMB 14,191 million, down from RMB 14,886 million at the end of the same period last year[24] Assets and Liabilities - Total assets at the end of the reporting period were RMB 306,201 million, a decrease of 1.86% from the previous year-end[4] - The total assets as of September 30, 2023, were RMB 306,201 million, a decrease from RMB 312,001 million at the end of 2022[17] - Total liabilities decreased to RMB 248,339 million as of September 30, 2023, down from RMB 256,887 million at the end of 2022[17] - Long-term borrowings increased to RMB 22,465 million in 2023 from RMB 15,316 million in 2022, reflecting a growth of 47.0%[16] Shareholder Information - The total number of common shareholders at the end of the reporting period is 162,987, with the largest shareholder, China Southern Airlines Group Co., Ltd., holding 9,404,468,936 shares, representing 51.90% of the total[8] - The top ten shareholders collectively hold a significant portion of the company's shares, with the top three alone accounting for over 75% of the total shares[9] - The company has a total of 803,571,428 preferred shares with restored voting rights, indicating a potential for increased shareholder engagement[8] - The largest foreign shareholder is American Airlines, holding 270,606,272 shares, which represents 1.49% of the total shares[8] - The company has a diversified shareholder base, including both state-owned and foreign entities, which may enhance its market stability[9] - The company has not reported any pledges, markings, or frozen shares among the top shareholders, suggesting a stable ownership structure[9] Revenue and Expenses - Revenue from sales of goods and services amounted to RMB 136,323 million, up from RMB 75,035 million year-on-year, reflecting a growth of approximately 81.8%[22] - Total operating costs for the first three quarters of 2023 were RMB 119,954 million, compared to RMB 94,601 million in 2022, reflecting an increase of 26.9%[18] - The company reported a significant increase in sales expenses, which rose to RMB 4,791 million in 2023 from RMB 2,996 million in 2022, marking a 60.0% increase[18] - Research and development expenses increased to RMB 377 million in 2023, up from RMB 268 million in 2022, indicating a growth of 40.7%[18] - The company reported an increase in investment income to RMB 463 million in 2023, compared to RMB 479 million in 2022, showing a slight decrease of 3.3%[19] Market Outlook - The company experienced a significant increase in passenger revenue, which was a key driver for the overall revenue growth[6] - The company is focused on continuing its market recovery and expansion strategies in the upcoming quarters[6]