Shandong Airlines Co., Ltd. Summary of Annual Report 2016
Shandong Airlines Co., Ltd.
Summary of Annual Report 2016
1. Important Notice
The summary is abstract from full-text of annual report, for more details of operating results, financial condition and future
development plan of the Company; investors should found in the full-text of annual report that published on media appointed by
CSRC.
Other directors attending the Meeting for annual report deliberation except for the followed:
Name of director absent Title for absent director Reasons for absent Attorney
Wang Mingyuan Director Work causes Xu Chuanyu
The profit distribution plan that deliberated and approved by the Board is: based on total stock issued 400,000,000 shares, distributed
3.0 Yuan (tax included) bonus in cash for every 10-share hold by all shareholders, 0 shares bonus issued (tax included) and no
capitalizing of common reserves carried out.
II. Basic information of the company
1. Company profile
Short form of the stock Shanhang-B Stock code 200152
Stock exchange for listing Shenzhen Stock Exchange
Person/Way to contact Secretary of the Board Rep. of security affairs
Name Dong Qiantang Fan Peng
1/F, Tiangong Office Building, North of 3/F, Tiangong Office Building, North of
Red-crowed cranes Hotel, Yaoqiang Red-crowed cranes Hotel, Yaoqiang
Office add.
International Airlines, Licheng District, International Airlines, Licheng District,
Jinan, Shandong Jinan, Shandong
Fax. 0531-85698767 ext.8679 0531-85698767 ext.8679
Tel. 0531-82085939 0531-82085586
E-mail dongqt@shandongair.com.cn fanp@shandongair.com.cn
2. Main business or product introduction in the reporting period
Our Company and its subsidiaries are mainly engaged in provision of airline transportation service.
As of the end of 2016, the Company has 100 airplanes like Boeing B737 series, and enters into the ranks of large airlines. At present,
the Company takes Jinan as the headquarters base, and sets up five branches (base) in Qingdao, Yantai, Xiamen, Chongqing, and
Beijing, establishes four flight bases in Urumqi, Guiyang, Kunming, and Haikou, builds an airline network which cuts through south
and north and connects east to west, and builds the triangle base pattern among Shandong, Xiamen, and Chongqing. The Company
elaborately creates the "honest and kind" brand characteristics, which is increasingly blending in the enterprise blood along with the
growth of fleet size and airline network. The Company has been awarded the title of the “most valuable top 500 brands of China” for
successive nine years. In 2016, the brand value of the Company increased by RMB 5.313 billion as compared to previous year to
RMB 28.528 billion, making it rank No.101 among the most valuable top 500 brands of China, with 4 positions improved than last
year.
3. Main accounting data and financial indexes
(1) Main accounting data and financial indexes for recently three years
In RMB
2016 2015 Changes over last year 2014
Operating income 13,742,365,545.56 12,108,963,139.11 13.49% 11,570,296,757.48
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Shandong Airlines Co., Ltd. Summary of Annual Report 2016
Net profit attributable to
532,834,567.17 532,260,993.04 0.11% 287,851,542.09
shareholders of the listed company
Net profit attributable to
shareholders of the listed company
409,577,360.28 387,733,814.57 5.63% 146,403,043.43
after deducting non-recurring gains
and losses
Net cash flow arising from
2,427,055,988.42 2,424,457,843.01 0.11% 1,459,828,215.31
operating activities
Basic earnings per share
1.33 1.33 0.00% 0.72
(RMB/Share)
Diluted earnings per share
1.33 1.33 0.00% 0.72
(RMB/Share)
2.34 percentage points
Weighted average ROE 14.88% 17.22% 10.33%
down
Changes over end of
End of 2016 End of 2015 End of 2014
last year
Total assets 12,741,974,788.53 12,748,902,597.96 -0.05% 12,118,867,620.51
Net assets attributable to
3,836,172,828.06 3,365,013,204.57 14.00% 2,878,120,380.35
shareholder of listed company
(2) Quarterly main financial index
In RMB
First quarter Second quarter Third quarter Fourth quarter
Operating income 3,219,038,263.72 3,090,711,026.50 4,281,345,876.23 3,151,270,379.11
Net profit attributable to
245,104,203.92 38,585,284.73 561,083,160.10 -311,938,081.58
shareholders of the listed company
Net profit attributable to
shareholders of the listed company
211,053,323.68 -8,590,154.76 543,592,573.16 -336,478,381.80
after deducting non-recurring gains
and losses
Net cash flow arising from
269,904,370.90 754,591,361.32 1,307,244,115.90 95,316,140.30
operating activities
4. Shares and shareholders
(1) Particulars about common stock shareholders, preference shareholders with voting rights recovered and
top ten shareholders
In Share
Total preference
Total common Total common Total preference
shareholders with
stock stock shareholders shareholders with
voting rights recovered
shareholders in 15,801 at end of last month 15,759 voting rights 0 0
at end of last month
reporting before annual recovered at end of
before annual report
period-end report disclosed reporting period
disclosed
Top ten shareholders
Amount of Amount of restricted Number of shares
Nature of Proportion of pledged/frozen
Full name of Shareholders
shareholder shares held shares held shares held
State of share Amount
State-owned
Shandong Aviation Group 42.00% 168,004,000 168,004,000
legal person
State-owned
Air China Limited 22.80% 91,200,000 91,200,000
legal person
BBH A/C VANGUARD Foreign legal 0.74% 2,960,917 0
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Shandong Airlines Co., Ltd. Summary of Annual Report 2016
EMERGING MARKETS person
STOCK INDEX FUND
Foreign legal
NORGES BANK 0.63% 2,520,800 0
person
WANXIANG
INTERNATIONAL Foreign legal
0.62% 2,490,000 0
INVESTMENT person
CORPORATION
Domestic
侯春虎 0.41% 1,651,345 0
nature person
VANGUARD TOTAL
Foreign legal
INTERNATIONAL STOCK 0.40% 1,582,720 0
person
INDEX FUND
Domestic
陈经建 0.38% 1,519,400 0
nature person
Domestic
姚明 0.33% 1,300,000 0
nature person
Domestic
叶渠发 0.30% 1,180,169 0
nature person
1. Shandong Aviation Group(SDA) is the first largest shareholder of the
Company, who holds the shares of the Company on behalf of the State with
unlisted shares;
2. Air China Limited is the second largest shareholder of the Company, who
Explanation on related relationship or concerted holds the shares of the Company on behalf of the State with unlisted shares;
action among the abovementioned shareholders 3. Among the above top ten shareholders, Air China Limited is the first largest
shareholder of the SDA, and there exists no associated relationship between SDA
and Air China and the other shareholders, and they don’t belong to the consistent
actionist regulated by the Management Regulation of Information Disclosure on
Change of Shareholding for Listed Companies with the other shareholders.
(2) Total preferred stock shareholders of the Company and shares held by top ten shareholders with
preferred stock held
The Company had no shareholders with preferred stock held in the reporting.
(3) Property right and controlling relationships between the actual controllers of the Company and the
Company is as follows:
Shandong Aviation Group
42%
Shandong Airlines Co., Ltd.
5. Corporate bonds
Not applicable
III. Discussion and analysis of business
1. Introduction of operation in the reporting period
Investors are advice to reading full text of the Annual Report, and pay attention to the follow risks
The security situation remained stable in year of 2016, operating quality continues to improve, main business maintain profitability
and service quality improved steadily, operation business are achieved the targets that predicted as a whole.
(I) continue to deepen security management
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Shandong Airlines Co., Ltd. Summary of Annual Report 2016
In 2016, transportation segment, our principal business, has guaranteed 170,100 safe flights for 353,000 hours, representing increases
of 12.5% and 9.5% respectively as compared to previous year. There is no civil aircraft incident or worse occurred due to the reason
of the Company or external engagement. Safety quality evaluation indicator was 10.29. The Company continues to improve its
security management policy, innovate a safety supervision mechanism, strengthen the safety production capacity and pay close
attention to safety style rectification.
(II) Optimized and improve the operation control and decision-making mechanism
Our punctuation rate throughout the year was 80.09%, representing an increase of 6.95 percentage points over last year, ranking the
2nd position among the major airline companies. 42 flights for significant missions and special III (inclusive) were ensured, with
punctuation rate of 98%. The Company reinforce management of flight normality, the normal rate for first flight in the whole year
achieved as 88%; optimized the operation decision-making mechanism, actively implement technological innovation. Implemented
143 times HUD LVTO in the whole year, and realized the effective support of technical factors to operation efficiency.
(III) Drive on structure optimization and cost control
In 2016, we completed a total turnover of 2.667 billion tons per kilometer, total passengers of 19.205 million and freights
transportation of 155,600 tons, representing increases of 19.6%, 14.0% and 8.9% respectively. In addition, we realized operating
income of RMB 13.742 billion, representing an increase of 13.49% year on year; total profit of RMB 709 million, representing a
decrease of 0.23% year on year. The occupation rate of our passenger flights was 77.90%, with an increase of 2.02 percentage points
year on year, the loading rate of freight flights was 40.94%, with an increase of 5.36 percentage points year on year. The Company
strengthen organization of production resources, positively advancing construction of direct marketing channel, and digging deep
into customer value, actively winning synergize, achieved cost advantage strategy, innovation development ability of the investment
enterprise is enhanced.
(IV) Promoting service quality and brand building
The overall comment on passenger satisfaction investigation reached at 96.33, increasing 2.17 points year on year. Customer’s
effective complain rate was 0.165 per ten thousand people. We are ranking fourth in aspect of services in the civil aviation
authoritative media, and honor the prize of Best Airline in Civil Aviation Service. The Company honor the China’s 500 Most
Valuable Brands for nine consecutive years with brand value up to over 28.528 billion Yuan, a 5313 million Yuan grown over last
year, ranked 4 to enhance the ranking of the top 101st. Optimized the service management mechanism, continue to building the
quality service brand-Lu Yan, and vigorously promote the construction of service team.
2. Whether the main business had major change in the reporting period
□ Yes √ No
3. About the industries, products, or regions accounting for over 10% of the company’s operating income or
operating profit
√Applicable □Not applicable
In RMB
Increase/decrease Increase/decrease Increase/decrease
Gross profit
Name Operating revenue Operating cost of operating of operating cost of gross profit
ratio
revenue y-o-y y-o-y ratio y-o-y
Air transport 3.34 percentage
service 13,301,825,036.11 1,490,630,519.81 11.21% 12.21% 16.60%
points down
4. Whether the characteristics of management seasonal or cyclical need special attention
□ Yes √ No
5. In the reporting period, note of major changes in operating income, operating cost, total net profit
attributable to common stock shareholders of listed company or composing the previous reporting period
□ Applicable √ Not applicable
6. Particular about suspended and delisting
□ Applicable √ Not applicable
7. Relevant items involving financial report
(1) Particulars about the changes in aspect of accounting policy, estimates and calculation method
compared with the financial report of last year
No particulars about the changes in aspect of accounting policy, estimates or calculation method in Period.
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Shandong Airlines Co., Ltd. Summary of Annual Report 2016
(2) Major accounting errors within reporting period that needs retrospective restatement
No major accounting errors within reporting period that needs retrospective restatement for the Company in the period.
(3) Compare with last year’s financial report; explain changes in consolidation statement’s scope
No changes in consolidation statement’s scope for the Company in the period.
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