CSN(600029)2016-03-30 16:00Fleet and Operations - China Southern Airlines operated a fleet of 667 aircraft, making it the largest airline in China by fleet size as of December 31, 2015[8]. - The airline transported nearly 110 million passengers in 2015, maintaining its position as the largest airline in China for 37 consecutive years and the largest in Asia[8]. - China Southern Airlines' route network covers 261 destinations across 38 countries and regions, with over 2,500 flights daily[8]. - The fleet size increased by 55 aircraft to a total of 667, with 58 new aircraft added during the reporting period[16]. - The average age of the fleet as of December 31, 2015, is 6.3 years, with the Airbus A380 having an average age of 3.6 years and seating capacity of 506[65]. - The total number of aircraft at the end of 2015 was 667, with a forecasted increase to 707 by the end of 2016, representing a growth rate of 6%[67]. - The company launched over 70 new routes in Southeast Asia and Africa in response to the national "Belt and Road" strategy[76]. - The Guangzhou-San Francisco direct flight route was officially opened, marking the third intercontinental route from Guangzhou to the United States[79]. - The company achieved a record of 70 flights per week between China and North America in June 2015[79]. - The company successfully transported nearly 1,200 stranded passengers back to China following the Nepal earthquake in April 2015[76]. Financial Performance - In 2015, China Southern Airlines reported operating revenue of RMB 111,467 million, an increase of 2.91% compared to RMB 108,313 million in 2014[24]. - The net profit attributable to shareholders of the listed company reached RMB 3,851 million, representing a significant increase of 117.20% from RMB 1,773 million in the previous year[24]. - The net profit after deducting non-recurring gains and losses was RMB 3,315 million, up 133.29% from RMB 1,421 million in 2014[24]. - The net cash flow generated from operating activities was RMB 25,713 million, a 70.10% increase from RMB 15,116 million in 2014[24]. - Operating revenue for the fourth quarter of 2015 was RMB 26,139 million, with a net profit attributable to shareholders of RMB (805) million[39]. - Basic earnings per share increased by 116.67% to RMB 0.39 in 2015 from RMB 0.18 in 2014[26]. - The total operating revenue for the reporting period was RMB 111,467 million, an increase of RMB 3,154 million or 2.91% year-on-year[111]. - Net profit attributable to shareholders was RMB 3,851 million, up RMB 2,078 million or 117.20% compared to the previous year[112]. - Passenger transport revenue reached RMB 100,238 million, accounting for 91.63% of total revenue, with a year-on-year increase of RMB 3,093 million or 3.18%[111]. - Operating costs decreased to RMB 91,382 million, down RMB 3,769 million or 3.96% year-on-year[112]. Market Expansion and Strategy - The company is focused on expanding its international network and enhancing its service offerings through partnerships with SkyTeam alliance members[8]. - The airline's operational strategy includes a commitment to developing a comprehensive and competitive air transport network connecting domestic and international markets[8]. - The company plans to continue expanding its fleet and routes to enhance market presence and operational efficiency[58]. - The company aims to enhance its brand service quality and has established a customer care center to address complex complaints[19]. - The company plans to improve cargo operations by focusing on express delivery and cross-border e-commerce opportunities[162]. - The company aims to strengthen its competitive advantage in key domestic markets and enhance international marketing capabilities to attract high-end customers[162]. Risk Management and Challenges - The company faces risks from macroeconomic fluctuations and government policy changes that could impact operational performance and future business development[163][164]. - The company faces intensified competition from major airlines, foreign carriers, and low-cost airlines like Spring Airlines, impacting its market share and profitability[166]. - The company is under pressure from alternative transportation modes such as rail and road, which are becoming more competitive due to the expansion of high-speed rail networks and highways[167]. - External factors like natural disasters, public health emergencies, and political instability pose significant risks to the company's operations and long-term development[168]. - Safety risks are heightened due to the company's large fleet and international operations, with potential accidents adversely affecting production and reputation[169]. - The company is exposed to foreign exchange risks, with most of its financing liabilities denominated in foreign currencies, primarily USD, EUR, and JPY[172]. - Fluctuations in fuel prices significantly impact the company's profitability, with a 10% change in fuel prices potentially affecting operating costs by approximately RMB 2,627 million[177]. Shareholder Returns and Dividends - The company plans to distribute a total dividend of approximately RMB 785 million for the year ending December 31, 2015, which translates to RMB 0.8 per 10 shares (including tax) based on 9,817,567,000 shares issued[190]. - The cash dividend amount for 2015 accounts for 32% of the company's net profit as per the non-consolidated report[189]. - The company has a profit distribution policy emphasizing reasonable returns to investors, with cash distributions expected to be at least 30% of the average distributable profit over the past three years[185]. - The independent directors believe the proposed profit distribution plan adequately considers shareholder interests and aligns with the company's current situation[190]. Subsidiaries and Investments - The company has established 15 subsidiaries and 67 overseas offices to support its operational and market expansion strategies[9]. - The company signed agreements to purchase 110 B737NG and B737MAX aircraft from Boeing and 10 A330-300 aircraft from Airbus[90]. - In 2015, the company signed a share transfer agreement to acquire 4% equity in Xiamen Airlines for RMB 626,666,667[193]. - The company completed significant equity investments, including acquiring 4% of Xiamen Airlines for RMB 626.67 million and 100% of China Southern Airlines Group Import and Export Trade Company for RMB 400.5704 million[137].