Shandong Airlines Co., Ltd. Summary of Semi-Annual Report 2019
Shandong Airlines Co., Ltd.
Summary of Semi-Annual Report 2019
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) 8,989,068,400.72 8,729,278,564.65 2.98%
Net profit attributable to shareholders of
-27,364,005.41 203,730,704.65 -113.43%
the listed company (RMB)
Net profit attributable to shareholders of
the listed company after deducting -66,030,703.80 61,909,312.57 -206.66%
non-recurring gains and losses (RMB)
Net cash flow arising from operating
544,076,655.68 858,898,162.88 -36.65%
activities (RMB)
Basic earnings per share (RMB/Share) -0.07 0.51 -113.73%
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Shandong Airlines Co., Ltd. Summary of Semi-Annual Report 2019
Diluted earnings per share (RMB/Share) -0.07 0.51 -113.73%
Weighted average ROE 5.29 percentage points
-0.61% 4.68%
decrease
Increase/decrease over same
End of current Period End of period of last year
period-end of last year
Total assets (RMB) 16,885,295,621.99 16,563,979,100.41 1.94%
Net assets attributable to shareholder of
4,684,060,262.44 4,471,325,978.28 4.76%
listed company (RMB)
3. Number of shares and share-holding
In Share
Total preference shareholders
Total common stock shareholders in with voting rights recovered
15,088 0
reporting period-end at end of reporting period (if
applicable)
Particulars about shares held by top ten shareholders
Number of Pledge or frozen
Nature of Proportion of
Shareholders Total shares hold uncirculated
shareholder shares held Status Numbers
shares
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 EMERGING
Foreign legal
MARKETS STOCK INDEX 0.74% 2,960,917 0
person
FUND
WANXIANG
INTERNATIONAL Foreign legal
0.66% 2,658,100 0
INVESTMENT person
CORPORATION
VANGUARD TOTAL
Foreign legal
INTERNATIONAL STOCK 0.57% 2,268,651 0
person
INDEX FUND
ISHARES CORE MSCI Foreign legal
0.50% 1,982,453 0
EMERGING MARKETS ETF person
Domestic
Hou Chunhu 0.43% 1,731,045 0
nature person
Domestic
Chen Jingjian 0.40% 1,595,200 0
nature person
Domestic
Wang Jingqing 0.32% 1,279,053 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;
Explanation on related relationship or concerted 2. Air China Limited is the second largest shareholder of the Company, who holds
action among the above mentioned shareholders the shares of the Company on behalf of the State with unlisted shares;
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
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Shandong Airlines Co., Ltd. Summary of Semi-Annual Report 2019
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 2019, the Company has basically completed the intended targets in various works of production
and management.
——Safety position is generally stable. In transpiration, we have ensured security flight of 213,800 hours and
100,100 vehicles, a respective increase of 1.53% and 0.39% on a year-on-year basis. No transporting aviation
incidents and above insecurity incidents occurred due to the Company.
——Operation quality Steadily improved. The transportation main business totally organized and ensured the
flights of 100455 flights, the flight punctuality rate was 84.85%, and an increase of 5.97% on a year-on-year basis,
ranks No. 1 in the Civil Aviation major airline.
——Profitability quality is challenged. The Company achieved operating income of 8.99 billion Yuan with an
increase of 2.98% on a year-on-year basis; the net profit of -27.36 million Yuan with an decrease of 113.43% on a
year-on-year basis; The total turnover of transportation reached 1.768 billion ton-kilometers, passenger traffic
volume reached 12,391,000 person-time, cargo and mail transport volume reached 85,800 tons, a respective
increase of 3.34%, 1.66% and 1.58% on a year-on-year basis; passenger load factor of 83.99%, an increase of
0,16% on a year-on-year basis, cargo and mail load factor of 37.49%, a decrease of 2.69% on a year-on-year
basis.
——Continuous improvement of service quality. Passenger satisfaction achieved 93.7 scores, risen by 1.59 score
on a year-on-year basis. The civil aviation media service ranked number four. CAAC accepted passenger
complaint rate (from low to high) ranks second among major airlines
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Shandong Airlines Co., Ltd. Summary of Semi-Annual Report 2019
The Company has been awarded as China Top 500 Most Valuable Brand for twelve consecutive years, ranking
No. 98 with the brand value of 51.292 billion Yuan.
The Company mainly carried out the following work:
1. Consolidate the foundation of safety management and continuously improve safety quality
The first is to strengthen the political responsibility for ensuring security, conscientiously study and implement
General Secretary Xi Jinping's important instructions for civil aviation work, and have a more correct attitude
towards safety work. The enthusiasm and initiative to promote the reform of safety management concepts and
implement measures have been improved. The second is to continuously improve the safety management system.
The third is to carry out the "three foundations" construction in a solid manner. The fourth is to comprehensively and
thoroughly promote the construction of style and discipline. The fifth is to continue to deepen the risk prevention
and control.
2. Consolidate and optimize the operation and control mechanism, and maintain high-level flight regularity
The first is to continue to consolidate the operation and control basis, optimize the operation quality index system,
optimize the process of operation and control system, and hold the red line and bottom line of “not lower than the
management and control requirements of the administration bureau and each airport transportation management
committee”. The second is to improve the flight operation decision-making level and guarantee efficiency,
continuously enhance the meteorological forecasting and early warning capability, improve the rapid transit
mechanism, and optimize the control measures for long hours delay flight. The third is to focus on key links and
improve problems. Since July 2018, the company has won the 12th consecutive championship in the on time
performance of China's large-scale airlines in the Asia-Pacific region, the operational efficiency has been
consolidated and improved, and the effect of operational management organizational structure optimization and
management and control mode reform has been fully reflected.
3. Actively respond to risk challenges and comprehensively strengthen efficiency control
The first is to unswervingly improve the competitiveness of the airline network, keep up with national and industry
policy trends, and actively strive for time resources in the potential markets. The second is to continuously polish
the income management and control capabilities, optimize the income management and control ideas, focus on
market dynamics, coordinate production and investment relations, and control the balance between quality and
price. The third is to focus on the trend risk to strengthen cost control, and actively respond to the risk of jet fuel
prices and exchange rate fluctuations.
4. Optimize service presentation and brighten service brand
First, continue to promote the service quality construction, and the service quality management system becomes
more perfect. Second, actively implement service innovation and improvement, vigorously promote “paperless”
travel, optimize the self-service rescheduled function of all-channel irregular flights, and continuously improve
service shortcomings. Third, continuously enrich the “honest and kind” brand connotation, clarify the brand
positioning and improvement plan, and the brand influence is continuously enhanced.
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Shandong Airlines Co., Ltd. Summary of Semi-Annual Report 2019
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
A- On 15 June 2018, the Ministry of Finance issued the Notice on Revision and Issuance of 2018 Financial
Statement Format for General Corporate (Cai Kuai [2018] No.15), and the financial statement format of general
enterprises has been revised.
B- In 2017, the Ministry of Finance issued the Accounting Standards for Business Enterprise No. 22-
Recognition and Measurement of Financial Instruments (Cai Kuai [2017] No.7), Accounting Standards for
Business Enterprise No. 23- Transfer of Financial Assets(Cai Kuai [2017] No.8), Accounting Standards for
Business Enterprise No. 24- Hedge Accounting(Cai Kuai [2017] No.9) and Accounting Standards for Business
Enterprise No. 37- Presentation of Financial Instruments(Cai Kuai [2017] No.14) after revised, and the enterprise
listed domestically are required to implemented the above mentioned new financial instrument standards since 1 st
January 2019.
After approved by the resolution of 4th session of 6th BOD on 21st March 2019, the Company implemented the
above mentioned accounting standards for business enterprise since 1st January 2019
(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.
Shandong Airlines Co., Ltd.
Legal representative: Sun Xiujiang
27 August 2019
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