CSN(600029)2022-03-30 16:00Financial Performance - China Southern Airlines reported a net profit of CNY 1.5 billion for the fiscal year 2021, marking a significant recovery from the previous year's loss of CNY 7.1 billion[3]. - The total revenue for the year reached CNY 36.2 billion, an increase of 25% compared to 2020[3]. - The company's operating revenue for 2021 was RMB 101,644 million, an increase of 9.81% compared to RMB 92,561 million in 2020[20]. - The net loss attributable to shareholders for 2021 was RMB 12,103 million, representing an increase of 11.63% from a net loss of RMB 10,842 million in 2020[20]. - The net cash flow from operating activities for 2021 was RMB 13,371 million, a significant increase of 47.76% compared to RMB 9,049 million in 2020[20]. - The company's total assets at the end of 2021 were RMB 322,948 million, a decrease of 0.97% from RMB 326,115 million at the end of 2020[20]. - The total operating revenue for the reporting period was RMB 101,644 million, an increase of RMB 9,083 million or 9.81% year-on-year[63]. - Passenger transportation revenue reached RMB 75,392 million, accounting for 76.52% of total revenue, with a year-on-year increase of RMB 4,858 million or 6.89%[63]. - Cargo and mail transportation revenue was RMB 19,887 million, representing 20.18% of total revenue, up RMB 3,394 million or 20.58% year-on-year[63]. - The total operating cost was RMB 104,229 million, an increase of RMB 9,326 million or 9.83% year-on-year, with fuel costs rising by 35.69% to RMB 25,505 million[64]. Operational Metrics - Passenger traffic increased by 30% year-over-year, with a total of 100 million passengers carried during the year[3]. - The airline's capacity, measured in available seat kilometers (ASK), grew by 28% to 120 billion kilometers[3]. - The load factor improved to 80%, up from 75% in the previous year, indicating better utilization of available capacity[3]. - The company reported a significant increase in investment cash flow, which rose by 95.37% to RMB 15,149 million, compared to RMB 7,754 million in the previous year[72]. - The fleet size at the end of 2021 was 878 aircraft, with 22 deliveries and 11 retirements during the reporting period[44]. - The company plans to deliver 68 aircraft in 2022 and 73 in 2023, with a total fleet forecast of 1,003 by the end of 2023[45]. - The average daily utilization rate of the fleet was 6.96 hours, with a passenger load factor of 71.25%[75]. - The company transported over 130 million doses of COVID-19 vaccines domestically and internationally during the reporting period[31]. Strategic Initiatives - China Southern Airlines plans to expand its fleet by adding 30 new aircraft in the next two years to support growth[3]. - The company is focusing on enhancing its digital services and customer experience through new technology initiatives[3]. - The company aims to transition from speed-focused growth to quality-focused growth, emphasizing strategic market breakthroughs and digital transformation[56]. - The company is committed to enhancing its hub network strategy, with a focus on creating a dual-driven development model between Guangzhou and Beijing[59]. - The company is implementing a long-term cost control mechanism to support high-quality development, including projects for budget management and digital finance[99]. Market Outlook - Future guidance indicates an expected revenue growth of 15% for the upcoming fiscal year, driven by increased travel demand[3]. - The company is focused on maximizing marginal contributions in the domestic market while enhancing the quality of international route revenues[78]. - The company is actively expanding its hub network, focusing on the construction of comprehensive international hubs in Guangzhou and Beijing[35]. - The company aims to enhance operational efficiency and service quality, focusing on digital transformation in operations and fuel management to reduce fuel consumption per available ton-kilometer[101]. Risk Management - There are no significant risks reported regarding non-operational fund occupation by controlling shareholders during the reporting period[4]. - The company is committed to safety and risk management, implementing a dual prevention mechanism for safety risk control and hazard identification[98]. - The company is addressing macroeconomic risks that could impact air transport demand, including economic fluctuations and government policy changes[103][104]. Governance and Compliance - The company held 3 shareholder meetings during the reporting period, ensuring legal compliance and fair participation for all shareholders, especially minority investors[118]. - The board of directors consists of 6 members, with independent directors making up over 50% of the board, and the board convened 14 meetings in 2021[119]. - The company has established a "large information disclosure team" to enhance compliance management and improve the systematic and proactive nature of its disclosure practices[128]. - The company has not faced significant differences in governance compared to regulatory requirements, ensuring compliance with laws and regulations[129]. Environmental Initiatives - The company has implemented a carbon peak and carbon neutrality action plan, outlining its timeline and roadmap for achieving these goals[191]. - The company has constructed a wastewater treatment system that meets national discharge standards, with chemical oxygen demand measured at 16 mg/L[178]. - The company has achieved a significant reduction in carbon emissions through initiatives like single-engine taxiing and meal conservation programs[186]. - The company has initiated a comprehensive plan to address plastic pollution, including standards for replacing non-degradable plastic products[189].