CSN(600029)2014-03-28 16:00Financial Performance - In 2013, the company's operating revenue was RMB 98,130 million, a decrease of 3.30% compared to RMB 101,483 million in 2012[24]. - The net profit attributable to shareholders was RMB 1,895 million, down 27.89% from RMB 2,628 million in the previous year[24]. - The basic earnings per share decreased by 29.63% to RMB 0.19 from RMB 0.27 in 2012[25]. - The weighted average return on equity fell to 5.67%, a decrease of 2.48 percentage points from 8.15% in 2012[25]. - The total assets increased by 15.90% to RMB 165,145 million compared to RMB 142,494 million at the end of 2012[24]. - The net cash flow from operating activities was RMB 11,128 million, down 16.86% from RMB 13,384 million in 2012[24]. - The company reported a decline in overall profitability due to increased competition and high oil prices, leading to a drop in revenue quality[35]. - The net assets attributable to shareholders increased by 4.27% to RMB 34,139 million from RMB 32,740 million in 2012[24]. - The company faced challenges from high-speed rail competition and excess capacity in the market, impacting domestic pricing[35]. - Operating revenue decreased by 3.30% to RMB 98,130 million, while operating costs increased by 1.31% to RMB 87,061 million[54]. Dividend Distribution - The company proposed a cash dividend distribution of RMB 393 million for the year ended December 31, 2013, which translates to RMB 0.4 per share based on a total share capital of 9,817,567,000 shares[6]. - The cash dividend amount for 2013 accounted for 35% of the company's net profit as per the non-consolidated financial statements[131]. - The company’s profit distribution policy emphasizes a minimum cash distribution of 30% of the average distributable profit over the past three years, ensuring a stable return to investors[129]. - The company will distribute dividends annually, subject to meeting profit distribution conditions and ensuring normal operations and long-term development[129]. - The company has committed to maintaining a continuous and stable profit distribution policy that prioritizes reasonable returns to investors while considering long-term sustainable development[128]. Operational Highlights - The company achieved a total transportation turnover of 174.7 billion ton-kilometers, an increase of 8.1% year-on-year[36]. - The number of transported passengers reached 91.79 million, representing a year-on-year growth of 6.14%[47]. - The two-class passenger load factor improved to 44.8%, an increase of 2.9 percentage points year-on-year[37]. - Direct sales revenue reached 15.6 billion yuan, with a direct sales ratio of 20.5%, up by 4.5 percentage points year-on-year[37]. - The company completed 182.94 million hours of transportation flights, maintaining a flight safety record for 170 consecutive months[36]. - The international transfer passenger volume increased by 11.1%, with revenue growth of 10.8%[39]. - The company opened new international routes including Guangzhou-Moscow and enhanced existing routes, contributing to a 3.9% increase in passenger transfers at major hubs[39]. - The company maintained a flight punctuality rate among the industry leaders, with a year-on-year decrease in delay rate by 1.18 percentage points[40]. Market Position and Strategy - The company is the largest airline in China, with the most transport aircraft and the largest passenger volume, covering a route network that connects 1,024 destinations across 187 countries and regions[22]. - The company has a significant presence in the aviation market with 14 branch companies and 6 major subsidiaries, including Xiamen Airlines and Shantou Airlines[22]. - The company aims to become a strong international airline with a focus on quality and efficiency, adapting to the slow recovery of the global economy[71]. - The company plans to enhance safety management and operational efficiency in 2014, focusing on improving flight quality and system construction[109]. - The company aims to strengthen its marketing capabilities and expand its international market presence, particularly in the Asia-Pacific region[110]. Challenges and Risks - The company has identified challenges such as unstable international economic growth and increased competition in the aviation market[103]. - The competitive landscape is intensifying with domestic and foreign airlines, posing challenges to market share and profitability[119]. - The company faces risks from macroeconomic fluctuations, which can significantly impact air transport demand and operational performance[116]. - The company is exposed to increased operational costs due to the EU carbon emissions tax, which may affect profitability[118]. - Seasonal fluctuations in passenger and cargo transport volumes can lead to variability in revenue and profitability[126]. Corporate Governance and Compliance - The company has received a standard unqualified audit report from PwC Zhong Tian Certified Public Accountants[5]. - The supervisory board confirmed that the financial management and internal control systems were sound, with no significant omissions or false records in the financial reports[142]. - The company did not experience any major litigation, arbitration, or media controversies during the reporting period[148]. - The supervisory board emphasized the importance of compliance, financial control, and internal control in its oversight functions for 2014[146]. - The company has maintained close contact with social responsibility research institutions and actively participated in surveys and discussions on social responsibility[133]. Fleet and Infrastructure - The fleet size increased to 561 aircraft, a growth of 14.26% from the previous year[52]. - The company operated a fleet of 182 aircraft under operating leases and 137 aircraft under finance leases as of December 31, 2013[159]. - The company’s fixed assets increased to RMB 119.25 billion, primarily due to the addition of new aircraft during the reporting period[81]. - The fleet delivery plan for the next three years includes 65 aircraft deliveries in 2014, 52 in 2015, and 12 in 2016, totaling 651 aircraft by the end of 2016[114]. Subsidiary Performance - Xiamen Airlines, a major subsidiary, reported a passenger transport volume of 18.57 million, accounting for 20.2% of the group, with a revenue of RMB 16.63 billion and a net profit of RMB 1.297 billion[93]. - The total operating revenue for Xiamen Airlines in 2013 was RMB 16.63 billion, with a year-on-year growth of 10.3% in passenger transport volume[93]. - The average passenger load factor for Xiamen Airlines was 74.9%, a decrease of 2.1 percentage points year-on-year, while the average cargo load factor was 65.7%, down 2.0 percentage points[93]. Community and Social Responsibility - The company has engaged in community responsibility initiatives, integrating into local communities for harmonious development[133]. - The company has established a supplier code of conduct and conducted surveys with key suppliers to enhance responsibility management[133].