Shandong Airlines Co., Ltd. Summary of Semi-Annual Report 2018
Shandong Airlines Co., Ltd.
Summary of Semi-Annual Report 2018
I. 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.
Prompt of non-standard audit opinion
□ Applicable √ Not applicable
There is no plan of cash bonus, dividend distribution and capitalizing of common reserves carried out by the Company.
Profit distribution pre-plan of preferred stock deliberated and approved by the Board in the reporting period
□ Applicable √ Not applicable
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
Tel. 0531-82085939 0531-82085586
E-mail dongqt@sda.cn fanp@sda.cn
2. Main financial data and indexes
Whether it has retroactive adjustment or re-statement on previous accounting data or not
□Yes √ No
Increase/decrease over same
Current Period Same period of last year
period of last year
Operating revenue (RMB) 8,729,278,564.65 7,550,794,741.92 15.61%
Net profit attributable to shareholders of
203,730,704.65 90,093,090.83 126.13%
the listed company (RMB)
Net profit attributable to shareholders of
the listed company after deducting 61,909,312.57 31,207,526.00 98.38%
non-recurring gains and losses (RMB)
Net cash flow arising from operating 858,898,162.88 649,153,844.96 32.31%
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Shandong Airlines Co., Ltd. Summary of Semi-Annual Report 2018
activities (RMB)
Basic earnings per share (RMB/Share) 0.51 0.23 121.74%
Diluted earnings per share (RMB/Share) 0.51 0.23 121.74%
2.36 percentage points
Weighted average ROE (%) 4.68% 2.32%
increase
Increase/decrease over same
End of current Period End of period of last year
period-end of last year
Total assets (RMB) 14,942,758,296.05 13,351,422,839.91 11.92%
Net assets attributable to shareholder of
4,353,574,272.77 4,253,141,013.93 2.36%
listed company (RMB)
3. Number of shares and share-holding
In Share
Total preference shareholders
Total common stock shareholders in with voting rights recovered
15,428 0
reporting period-end at end of reporting period (if
applicable)
Particulars about shares held by top ten shareholders
Number of shares
Nature of Proportion of Total shares Number of uncirculated
Shareholders pledged/frozen
shareholder shares held hold shares
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
Foreign legal
NORGES BANK 0.87% 3,498,479 0
person
VANGUARD
Foreign legal
EMERGING MARKETS 0.74% 2,960,917 0
person
STOCK INDEX FUND
WANXIANG
INTERNATIONAL Foreign legal
0.65% 2,609,500 0
INVESTMENT person
CORPORATION
ISHARES CORE MSCI
Foreign legal
EMERGING MARKETS 0.44% 1,763,224 0
person
ETF
VANGUARD TOTAL
Foreign legal
INTERNATIONAL 0.43% 1,735,020 0
person
STOCK INDEX FUND
Domestic
Hou Chunhu 0.42% 1,693,945 0
nature person
Domestic
Chen Jingjian 0.39% 1,554,400 0
nature person
GUOTAI JUNAN
Foreign legal
SECURITIES(HONGKO 0.34% 1,354,378 0
person
NG) LIMITED
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Shandong Airlines Co., Ltd. Summary of Semi-Annual Report 2018
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 holds the
Explanation on related relationship or shares of the Company on behalf of the State with unlisted shares;
concerted action among the 3. Among the above top ten shareholders, Air China Limited is the first largest
abovementioned shareholders 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.
4. Changes of controlling shareholders or actual controller
Controlling shareholders had no change in reporting period.
Actual controller had no change in reporting period.
5. Total preferred shareholders and top 10 shares held by preferred shareholders
The Company has no preferred shareholders
6. Corporate bond
The Company did not has a corporation bonds that issuance publicly and listed on stock exchange and without due on the date when
semi-annual report approved for released or fail to cash in full on due
No
III. Discussion and analysis of operation
1. Operation status in the period
In the first half of 2018, the Company has basically completed the intended targets in various works of production and management.
- The security situation remained stable. Ensured security flight of total 210,600 hours and 99,700 vehicles, a respective increase
of 10.07% and 9.39% on a year-on-year basis; no transporting aviation incidents and above insecurity incidents occurred due to the
Company and aviation safety quality evaluation index was 10.68.
-Operation quality improved. The transportation main business totally organized and ensured the flights of 100334 flights, the
flight punctuality rate was 78.88%, and an increase of 8.44% on a year-on-year basis; guaranteed 12 flights for important missions
and dedicated class III or above, and the flight punctuality rate was 100%.
-Profitability continues to improve. The Company achieved operating income of 8.73 billion Yuan, the total profit of 261.10
million Yuan. The total turnover of transportation reached 1.712 billion ton-kilometers, passenger traffic volume reached 12,186,200
person-time, cargo and mail transport volume reached 84,400 tons, an increase of 14.64%, 13.87% and 9.29% on a year-on-year
basis; passenger load factor of 83.82%, an increase of 1.54% on a year-on-year basis, cargo and mail load factor of 40.15%, an
increase of 0.87% on a year-on-year basis.
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Shandong Airlines Co., Ltd. Summary of Semi-Annual Report 2018
-Continuous improvement of service quality. Passenger satisfaction achieved 93.46 scores, risen by 1.72 score on a year-on-year
basis. The civil aviation media service ranked number four. The Company has been awarded as China Top 500 Most Valuable Brand
for eleven consecutive years, ranking No. 99 with the brand value of 41.652 billion Yuan.
The Company mainly carried out the following work:
(i) Practice the concept of safety development and improve the safety management and control capabilities
The first is to firmly establish the concept of safe development, conscientiously implement the decision-making and industry
requirements of the Party Central Committee and the State Council on safety production, continue to enhance the awareness of the
red line and the bottom line, and strengthen the organizational leadership of safety production. The second is to continue to
strengthen the construction of a safety management system and actively promote the transformation of safety management from
after-management to pre-event management and process management. The third is to pay close attention to the construction of
security teams and the skills training of professional team. The fourth is to carry out in-depth security management and rectification.
The fifth is to actively carry out risk prevention and control, and strengthen the investigation and management of hidden dangers and
the risk management and control.
(ii) Improve the operation management system and improve the flight operation efficiency
The first is to enhance the operational management coordination and strengthen the cooperation and linkage among production,
operation, maintenance and marketing departments so as to improve the operational support efficiency. The second is to pay close
attention to the normal quality of flights, and the coincidence rate of flight time, transit time and flight connection time has been
significantly improved. The third is to improve the level of release control and the capability of emergency response.
(iii) Vigorously increase revenue and reduce expenditure, and improve profitability
The first is to actively acquire time resources, actively consolidate the advantages of the main base, and lay out in the hot potential
markets. The second is to improve the level of production resources allocation and optimize the route network layout. The third is to
improve the quality of revenue control and the online marketing control platform, and the adjustment of competition strategy is more
precise. The fourth is to vigorously implement cost control, adhere to giving consideration to both large and small, formulate cost
control measures, improve the quality of benefits through large cost monitoring, and increase the cost awareness of all employees
through small cost reduction. The fifth is to actively mould the collaborative advantages and continue to promote the synergy of the
Air China system.
(iv) Improve the service management and control efficiency, and continuously optimize the passenger experience
The first is to continuously improve the service management system. The second is to put forth efforts to improve the presentation of
product services, sort out the high-end passenger service standard process, reflect the differentiated services, continue to improve the
service weakness, and enhance the passenger experience. The third is to strengthen the construction of service team, focus on giving
play to the demonstration and leading role of the brands, such as “Luyan Crew” of the cabin department, “Sunshine Team” of the
ground service department, and “Luyin Service Team” of the marketing committee; continue to promote the construction of
“Confucius School in the Air” project, highlight the “Honest and Kind” service culture characteristics, and continuously enhance the
brand influence.
2. Matters relevant to financial report
(1) Particulars about the changes in aspect of accounting policy, estimates and calculation method
compared with the accounting period of last year
The Company had no particulars about the changes in aspect of accounting policy, estimates or calculation method in the reporting
period.
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Shandong Airlines Co., Ltd. Summary of Semi-Annual Report 2018
(2) Particulars about retroactive restatement on major correction for accounting errors in reporting period
The company had no particulars about retroactive restatement on major correction for accounting errors in the reporting period.
(3) Particulars about the change of consolidation range compared with the accounting period of last year
No changes of consolidation range occurred in the period.
BOD
Shandong Airlines Co., Ltd.
24 August 2018
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