CSN(600029)2022-08-30 16:00Financial Performance - The company reported a significant increase in passenger traffic, with a year-on-year growth of 25% in revenue passenger kilometers (RPK) for the first half of 2022[7]. - The overall load factor improved to 80%, up from 75% in the same period last year, indicating better capacity utilization[7]. - The total operating revenue for the first half of 2022 reached RMB 50 billion, representing a 30% increase compared to the previous year[7]. - The company reported a net profit of RMB 5 billion for the first half of 2022, a significant recovery from the losses experienced in the previous year[7]. - The company's operating revenue for the first half of 2022 was RMB 40,817 million, a decrease of 20.86% compared to RMB 51,576 million in the same period last year[12]. - The net loss attributable to shareholders for the first half of 2022 was RMB (11,488) million, representing an increase of 145.05% from RMB (4,688) million in the previous year[12]. - The basic loss per share for the first half of 2022 was RMB (0.68), an increase of 126.67% compared to RMB (0.30) in the same period last year[13]. - The net loss for the first half of 2022 was RMB 11,983 million, compared to a net loss of RMB 3,964 million in the same period of 2021[157]. Revenue and Cost Analysis - The cargo revenue increased by 15%, contributing RMB 10 billion to the total revenue, driven by strong demand for air freight services[7]. - Passenger revenue decreased by 32.65% to RMB 26,732 million, primarily due to a 43.47% decline in domestic passenger turnover caused by adverse effects of the domestic pandemic[36]. - Cargo and mail revenue increased by 25.68% to RMB 11,143 million, driven by rising international freight rates[36]. - Operating costs for the first half of 2022 were RMB 49,455 million, a decrease of 4.65% year-on-year, with fuel costs rising by 16.69% to RMB 14,395 million[42]. - The gross profit margin for the main business decreased by 23.35% year-on-year, indicating challenges in profitability[44]. Operational Capacity and Fleet Management - The company plans to expand its fleet by adding 20 new aircraft by the end of 2023, enhancing its operational capacity[7]. - The fleet size as of June 30, 2022, totaled 880 aircraft, with an average age of 8.4 years[20]. - The total available seat kilometers (ASK) decreased by 34.33% from 114,295.35 million to 75,058.50 million[18]. - The total available ton kilometers (ATK) decreased by 26.92% from 17,863.41 million to 13,054.10 million[18]. - The total flight hours increased by 30.92% from 1,127.65 thousand hours to 779.02 thousand hours[19]. Strategic Initiatives and Future Outlook - Future guidance indicates an expected revenue growth of 20% for the second half of 2022, supported by increased travel demand[7]. - The company is focusing on digital transformation initiatives, aiming to enhance customer experience and operational efficiency through new technologies[7]. - The company aims to focus on high-quality development and strategic transformation towards digitalization and market-oriented operations[23]. - The company has no plans for major acquisitions in the near term but is exploring strategic partnerships to enhance market presence[7]. Environmental and Sustainability Efforts - The management highlighted the importance of sustainability initiatives, with plans to reduce carbon emissions by 10% over the next five years[7]. - The company is committed to green development and has been recognized as a key pollutant discharge unit in Shenyang and Guangzhou[82]. - The company achieved a fuel consumption of 2.83 tons per 10,000 ton-kilometers during the reporting period, demonstrating effective fuel management[99]. - The company has implemented a comprehensive environmental monitoring plan, ensuring that all major pollutants are within compliance during the reporting period[88]. - The company actively participated in carbon trading mechanisms, successfully completing the EU carbon trading compliance for 2021 in April 2022[93]. Financial Position and Liabilities - The total assets at the end of the reporting period were RMB 321,152 million, a slight decrease of 0.56% from RMB 322,948 million at the end of the previous year[12]. - The company's total liabilities reached RMB 249,764 million, up from RMB 238,703 million in the previous period[149]. - The current ratio decreased to 29.85%, down 4.27 percentage points from the previous year[51]. - The debt-to-asset ratio was 77.77%, an increase of 3.86 percentage points from 73.91% on December 31, 2021[51]. - The net assets attributable to shareholders at the end of the reporting period were RMB 56,143 million, a decrease of 16.97% from RMB 67,616 million at the end of the previous year[12]. Employee and Corporate Governance - As of June 30, 2022, the company had a total of 97,709 employees, a decrease from 98,098 employees on December 31, 2021[81]. - The company did not propose any profit distribution or capital reserve conversion plans for the half-year period[81]. - The company appointed KPMG Huazhen as the auditor for its 2022 domestic financial report and internal control report, as well as for its 2022 Hong Kong financial report[107]. - The company has not experienced a significant impact on its financial position or operating results from the adoption of new accounting regulations[121]. Market and Economic Challenges - The company faces macroeconomic risks that directly impact air passenger and cargo demand, affecting overall business performance[61]. - The company anticipates continued losses in the global aviation industry, with an estimated net loss of $9.7 billion for 2022 due to high oil prices and pandemic impacts[74]. - The Chinese civil aviation industry faced significant challenges, with passenger transport volume at 36.7% of 2019 levels[24].