[年报]山 航Ｂ:2020年年度报告（英文版）
原标题:山 航Ｂ:2020年年度报告（英文版） ANNUAL REPORT 2020 March 2021 Contents Section I Important Notice and Interpretation .............................................................................. 1 Section II Company Profile and Main Financial Indexes ............................................................. 4 Section III Summary of Company Business .................................................................................. 9 Section IV Discussion and Analysis of Operation ......................................................................... 12 Section V Important Events ........................................................................................................... 31 Section VI Changes in shares and particular about shareholders ............................................... 47 Section VII Preferred Stock……………………………………………………............................ 55 Section VIII Convertible Bond……………………………………………....................................56 Section IX Particulars about Directors, Supervisors,Senior Executives and Employees .......... 57 Section X Corporate Governance ................................................................................................... 71 Section XI Corporate Bonds ........................................................................................................... 79 Section XII Financial Report .......................................................................................................... 80 Section XIII Documents available for reference.......................................................................... 234 Section I. Important Notice and Interpretation Board of Directors, Supervisory Committee, all directors, supervisors and senior executives of Shandong Airlines Co., Ltd. (hereinafter referred to as the Company) hereby confirm that there are no any fictitious statements, misleading statements, or important omissions carried in this report, and shall take all responsibilities, individual and/or joint, for the reality, accuracy and completion of the whole contents. Sun Xiujiang, Principal of the Company, Xu Guojian, person in charge of accounting works and Zhou Shoubin, person in charge of accounting organ (accounting principal) hereby confirm that the Financial Report of 2020 Annual Report is authentic, accurate and complete. Except the followed directors, other directors are attending the meeting for annual report deliberation in person Director not personally attended Title of the director not personally attended Reasons for absent Mandatory Wang Mingyuan Director Job-related reason Xu Chuanyu Li Xiuqin Director Job-related reason Wang Zhifu Lv Hongbing Independent Director Job-related reason Xu Xiangyi Duan Yalin Independent Director Job-related reason Hu Yuanmu Concerning the forward-looking statements with development strategy and business plans involved in the Report, they do not constitute a substantial commitment for the investors. Investors are advised to exercise caution of investment risks. This report has been prepared in Chinese and English version respectively. In the event of difference in interpretation between the two versions, Chinese report shall prevail. The Company has no plans of cash dividend distributed, no bonus shares and has no share converted from capital reserve either Interpretation Items Refers to Contents The Company, Company Refers to Shandong Airlines Co., Ltd. Shandong Aviation Refers to Shandong Aviation Group, the first largest shareholder and controlling shareholder of the Company Air China Refers to Air China Limited, the second largest shareholder of the Company ATK (Available Tonne-Kilometre) Refers to Sum of products of payload and route distance for each segment ASK Refers to Sum of products of maximum numbers of seats and route distance for each segment AFTK Refers to Sum of products of maximum cargo carrying tonnage and route distance for each segment RTK Refers to Sum of products of tonnage of transport and route distance for each segment actually RPK (Revenue Passenger Kilometers) Refers to Sum of products of passenger traffic volume and route distance for each segment actually RFTK Refers to Sum of products of freight carrying tonnage and route distance for each segment actually Integrated carrier rate Refers to RTK/ATK PLF (Passenger Load Factor) Refers to RPK/ASK Freight Rate Refers to RFTK/ AFTK Section II Company Profile and Main Financial Indexes I. Company information Short form of the stock Shanhang-B Stock code 200152 Stock exchange for listing Shenzhen Stock Exchange Name of the Company (in Chinese) 山东航空股份有限公司 Short form of the Company (in Chinese) 山东航空 Foreign name of the Company (if applicable) SHANDONG AIRLINES CO.,LTD. Short form of foreign name of the Company (if applicable) SDA Legal representative Sun Xiujiang Registration add. Yaoqiang International Airport, Jinan, Shandong Code for registrations add. 250107 Offices add. SDA Bldg., No. 5746, Er Huan East Road, Jinan, Shandong Codes for office add. 250014 Company website www.sda.cn [email protected] II. Person/Way to contact Secretary of the Board Rep. of security affairs Name Dong Qiantang Fan Peng Contacts add. 1/F, Tiangong Office Building, North of Red-crowed cranes Hotel, Yaoqiang International Airlines, Licheng District, Jinan, Shandong 3/F, Tiangong Office Building, North of Red-crowed cranes Hotel, Yaoqiang International Airlines, Licheng District, Jinan, Shandong Tel. 0531-82085939 0531-82085586 Fax. 0531-85698034 0531-85698034 [email protected] [email protected] III. Information disclosure and preparation place Newspaper appointed for information disclosure In China: China Securities Journal, Securities Times overseas: Hong Kong Commercial Daily(H.K.) Website for annual report publish appointed by CSRC http://www.cninfo.com.cn Preparation place for annual report Office of Board (3/F, Tiangong Office Building, North of Red-crowed cranes Hotel, Yaoqiang International Airlines, Licheng District, Jinan, Shandong) IV. Registration changes of the Company Organization code 91370000720721201F Changes of main business since listing (if applicable) No change. Previous changes for controlling shareholders (if applicable) No change. V. Other relevant information CPA engaged by the Company Name of CPA RSM Certified Public Accountants (special general partnership) Offices add. for CPA 901-22 to 901-26, Foreign Economic & Trade Building, Block 1, No. 22, Fuchengmenwai Street, Xichang District, Beijing Signing Accountants Yang Yunhui, Xu Hong Sponsor engaged by the Company for performing continuous supervision duties in reporting period □ Applicable √ Not applicable Financial consultant engaged by the Company for performing continuous supervision duties in reporting period □ Applicable √ Not applicable VI. Main accounting data and financial indexes Whether the Company needs to retroactively adjust or restate the accounting data of previous years □Yes √No 2020 2019 Changes over last year(+,-) 2018 Operating income (RMB) 10,534,403,350.87 18,990,415,024.88 -44.53% 18,765,953,326.74 Net profit attributable to shareholders of the listed company(RMB) -2,382,015,455.81 361,005,776.31 -759.83% 347,379,314.89 Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses(RMB) -2,491,142,998.52 203,107,863.26 -1,326.51% 132,549,289.96 Net cash flow arising from operating activities(RMB) -1,699,728,760.80 2,629,812,252.38 -164.63% 2,450,017,519.48 Basic earnings per share (RMB/Share) -5.960 0.900 -762.22% 0.87 Diluted earnings per share (RMB/Share) -5.960 0.900 -762.22% 0.87 Weighted average ROE -61.31% 7.22% 68.53 percentage points down 7.94% Year end of 2020 Year end of 2019 Changes over end of last year (+,-) Year end of 2018 Total assets (RMB) 22,403,505,133.99 17,392,935,986.48 28.81% 16,563,979,100.41 Net assets attributable to shareholder of listed company (RMB) 2,570,260,924.21 5,173,519,005.57 -50.32% 4,471,325,978.28 The lower one of net profit before and after deducting the non-recurring gains/losses in the last three fiscal years is negative, and the audit report of last year shows that the ability to continue operating is uncertain . Yes .No The lower one of net profit before and after deducting the non-recurring gains/losses is negative √Yes .No Item 2020 2019 Note Operating income (RMB) 10,534,403,350.87 18,990,415,024.88 The operating revenue is mainly from international and domestic air passenger, cargo transportation business and other business license related revenue Deduction amount from operating income（RMB） 0.00 0.00 The operating revenue is mainly from international and domestic air passenger, cargo transportation business and other business license related revenue Amount of operating income after deduction（RMB） 10,534,403,350.87 18,990,415,024.88 The operating revenue is mainly from international and domestic air passenger, cargo transportation business and other business license related revenue VII. Difference of the accounting data under accounting rules in and out of China 1. Difference of the net profit and net assets disclosed in financial report, under both IAS (International Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles) □ Applicable √ Not applicable The Company had no difference of the net profit or net assets disclosed in financial report, under either IAS (International Accounting Standards) or Chinese GAAP (Generally Accepted Accounting Principles) in the period. 2. Difference of the net profit and net assets disclosed in financial report, under both foreign accounting rules and Chinese GAAP (Generally Accepted Accounting Principles) □ Applicable √Not applicable The Company had no difference of the net profit or net assets disclosed in financial report, under either foreign accounting rules or Chinese GAAP (Generally Accepted Accounting Principles) in the period. VIII. Quarterly main financial index In RMB Q 1 Q 2 Q 3 Q 4 Operating income 2,272,051,496.91 1,918,598,299.18 3,175,728,671.98 3,168,024,882.80 Net profit attributable to shareholders of the listed company -593,802,879.77 -702,207,694.13 -387,100,636.29 -698,904,245.62 Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses -623,330,188.48 -713,188,779.87 -404,417,235.22 -750,206,794.95 Net cash flow arising from operating activities -1,293,435,795.24 -604,312,983.19 574,301,527.34 -376,281,509.71 Whether there are significant differences between the above-mentioned financial index or its total number and the relevant financial index disclosed in the company’s quarterly report and semi-annual report □Yes √ No IX. Items and amounts of non-recurring profit (gains)/loss √ Applicable □ Not applicable In RMB Item 2020 2019 2018 Note Gains/losses from the disposal of non-current asset (including the write-off that accrued for impairment of assets) 59,471.65 -2,066,959.25 25,187,750.35 Governmental subsidy reckoned into current gains/losses (not including the subsidy enjoyed in quota or ration according to national standards, which are closely relevant to enterprise’s business) 98,058,606.34 102,684,463.91 210,862,890.39 Losses/gains from changes of fair values occurred in holding trading financial assets, derivative financial assets, trading financial liabilities and derivative financial liabilities, and investment income obtaining from the disposal of trading financial assets, derivative financial assets, trading financial liability, derivative financial liability and other debt investment, excluded effective hedging business relevant with normal operations of the Company -1,565,885.31 -207,436.01 3,789,484.18 Other non-operating income and expenditure except for the aforementioned items 46,338,437.81 105,248,418.17 35,762,795.56 Other items of profits/losses that qualified the definition of non-recurring profit/loss 2,626,332.77 4,954,383.18 10,952,470.45 Less: impact on income tax 36,389,420.55 52,714,956.95 71,725,366.00 Total 109,127,542.71 157,897,913.05 214,830,024.93 -- Concerning the non-recurring profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Non-recurring Profit/loss, and the items defined as recurring profit (gain)/loss according to the lists of non-recurring profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- non-recurring Profit/loss, explain reasons □ Applicable √ Not applicable Concerning the non-recurring profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Non-recurring Profit/loss, and the items defined as recurring profit (gain)/loss according to the lists of non-recurring profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Non-recurring Profit/loss, the Company has no such items in the reporting period for the aforesaid Section III Summary of Company Business I. Main businesses of the company engaged in during the Period 1.Main business of the Company engaged in during the Period (i) Main business and business model of the Company The Company is mainly engaged in international and domestic air passenger and cargo transportation business; hotel catering; aircraft maintenance; civil aviation personnel training; insurance agency; airline agency business; ground services related to main business; sales of aviation materials, general merchandise, food, health foods, handicrafts, souvenirs, etc., and retail sales of tobacco; leasing of aviation materials; leasing of premises, rental of houses; business services; hotel accommodation agents and ticket agents; conference services; transport agency services, air cargo storage; and labor services. Among them, international and domestic air passenger and cargo transportation business is the Company's main business. For more than 20 years, the Company has always been giving first priority to “ensure safety, pay close attention to efficiency, and strive to punctuality and quality service”. As of the end of 2020, the Company has 131 airplanes of Boeing B737 series, and striding into the ranks of large airlines. At present, the Company bases its headquarters in Jinan and has branch offices and flight bases in Qingdao, Yantai, Xiamen, Chongqing, Beijing, Urumqi and Guiyang. The Company operates more than 200 domestic, and opens routes to the surrounding countries as South Korea, Japan, Thailand, India and Cambodia as well as the region of Taiwan China and Hong Kong China. (ii) Development status of the industry In 2020, due to the impact of COVID-19 epidemic, the global civil aviation industry's passenger traffic dropped sharply, and China's civil aviation industry reduced 240 million passengers on a year-on-year basis. The international epidemic continued to spread, passenger travel demand was sluggish, and industry operations were facing severe challenges. In the face of the impact of the epidemic, our country’s civil aviation industry continued to maintain a safe operation situation, the national transport aviation achieved a record of “120+4” months and 89.43 million hours of continuous safe flight, and ensured air defense safety for 18 consecutive years, and the flight regularity rate has exceeded 80% for three successive years, which reached 88.52% in 2020. According to the “Main Production Index Statistics of CAAC in December 2020” published by the Civil Aviation Administration, the RTK of entire industry in 2020 reached 79.85 billion ton-km, a decrease of 38.3% on a year-on-year basis; passenger transport volume reached 418 million persons, a decrease of 36.7% on a year-on-year basis; cargo and mail transport volume reached 6,766,000 tons, a decrease of 10.2% from a year earlier. Data sources: Civil Aviation Industry Development Statistics Bulletin of 2019 The civil aviation industry is a cyclical industry closely related to the macroeconomic cycle, and also has obvious seasonal and regional characteristics. Affected by holidays and students' winter and summer vacations, the peak season of China's air passenger transport generally occurs in Spring Festival and during the time between July and August. II. Major changes in main assets 1. Major changes in main assets Major assets Note of major changes Equity assets No major changes in the period Fixed assets No major changes in the period Intangible assets No major changes in the period Construction in progress No major changes in the period Other equity instrument investment Amount at period-end has 38.06% declined over that of period-begin, mainly because the fair value of the non-tradable equity instruments held declined. 2. Main overseas assets □ Applicable √ Not applicable III. Core competence analysis 1. Industry-leading safety management capabilities: The Company has the industry-leading safety management model and safety management level. Excellent safety management capabilities enable the Company to provide passengers with a safer journey, effectively reduce the Company’s operational risk, and shape the Company’s safe brand image. At the same time, under the supervision of “safety first” in the civil aviation industry, the good safety records have also brought opportunities for the Company to take the lead in applying new technologies in the industry and play a leading role in promoting the safety control level in the industry. 2. Excellent resource allocation and organization & executive capacity: The Company operated a total of 131 airplanes of Boeing 737 serials with an average age of 7.28 years. The single Boeing model can help to enhance the bargaining power of the Company in the purchase, the aviation materials and the experience and technology of the crew and maintenance team can also be shared, and various resources can be adjusted and deployed flexibly to maximize the efficiency. The Company has outstanding organization and execution capability, and has man-machine ratio is 85:1, which is far below the industry average. Superior resource allocation and organizational execution capabilities maintain the Company’s industry-leading level in cost control. Besides, the Company has formed a Company-specific management mode through continuous innovation and accumulation and by focusing on safety, efficiency, service and operation. In 2017, the Company won the 17th National Quality Award and became the first and only award-winning aviation Company in the civil aviation industry; in 2020, successfully passed the confirmation review of National Quality Award, which proved the Company's management level and execution efficiency. 3. Incentive and competitive corporate culture brand: By many years of practice, the Company has formed the corporate values of “harmony, safety, innovation, and kindness” and the brand culture of “Honest Shanhang”. Qilu’s Confucianism and Shandong people’s character of “promise keeping and honor credibility” have been integrated into the Company and widely recognized by the Company's employees, which has also formed a resonance with the social mainstream’s recognition to honesty and kindness. Through the promotion of “honest and kind” culture and brand, the Company can better convey the service value to the passengers, gain the trust of customers, constantly enhance the passengers' sense of identity to the Company, and create greater value for the passengers. According to the passenger complaint rate of airlines published by the Civil Aviation Administration of China, the Company has maintained the leading level in the industry, and has been honored as the best airline enterprise with civil aviation services for six consecutive years. The core competence of the Company has no change in the reporting period. Section IV Discussion and Analysis of Operation I. Introduction (i) Operation data summary: Item 2020 2019 Changes (+,-) Transport capacity Available tonnage kilometer (ATK) (10 thousand TK) 363162.17 480063.30 -24.35% Including: Domestic flight 352563.43 440168.39 -19.90% International flight 10024.66 32325.42 -68.99% Regional routes 574.08 7569.49 -92.42% Available seat km(ASK) (10 thousand PK) 3379945.00 4481197.35 -24.57% Including: Domestic flight 3332174.98 4097117.74 -18.67% International flight 42369.88 313063.28 -86.47% Regional routes 5400.14 71016.33 -92.40% Available freight ton-kilometers (AFTK) (10 thousand TK) 58967.12 76755.54 -23.18% Including: Domestic flight 52667.68 71427.80 -26.26% International flight 6211.37 4149.73 49.68% Regional routes 88.07 1178.02 -92.52% Carrying capacity RTK (RTK)（10 thousand TK） 255192.97 362809.20 -29.66% Including: Domestic flight 250338.61 335661.31 -25.42% International flight 4636.04 22777.03 -79.65% Regional routes 218.31 4370.85 -95.01% Volume of passenger transportation (RPK)（10 thousand PK） 2562748.52 3765361.44 -31.94% Including: Domestic flight 2532349.27 3469080.26 -27.00% International flight 28066.01 249643.85 -88.76% Regional routes 2333.25 46637.33 -95.00% Turnover volume of freight transportation (RFTK)（10 thousand TK） 27966.64 30921.21 -9.56% Including: Domestic flight 25743.48 29878.91 -13.84% International flight 2207.02 769.61 186.77% Regional routes 16.14 272.69 -94.08% Volume of passenger traffic (10 thousand passengers) 1819.49 2583.76 -29.58% Including: Domestic flight 1799.74 2390.88 -24.72% International flight 18.42 165.61 -88.87% Regional routes 1.33 27.27 -95.14% Cargo & mail traffic volume (ton) 165922.33 182158.12 -8.91% Including: Domestic flight 152682.28 175578.69 -13.04% International flight 13142.78 4932.34 166.46% Regional routes 97.27 1647.09 -94.09% Load factor Integrated carrier rate (%) 70.27 75.58 -5.31 percentage points Including: Domestic flight 71.01 76.26 -5.25 percentage points International flight 46.25 70.46 -24.22 percentage points Regional routes 38.03 57.74 -19.71 percentage points PLF (%) 75.82 84.03 -8.2 percentage points Including: Domestic flight 76.00 84.67 -8.67 percentage points International flight 66.24 79.74 -13.5 percentage points Regional routes 43.21 65.67 -22.46 percentage points Freight Rate (%) 47.43 40.29 7.14 percentage points Including: Domestic flight 48.88 41.83 7.05 percentage points International flight 35.53 18.55 16.99 percentage points Regional routes 18.33 23.15 -4.82 percentage points Utilization of aircraft on a daily basis (Daily cycle times per aircraft) 7.50 10.08 -2.58 hours (ii) Fleet structure In the Period, totally seven B737-8 airplanes are introduced by the Company. Up to 31 December 2020, the Company operates 131 airplanes in total and the fleet distribution below: Model Numbers Average service age (Year) 737-700 3 7.28 737-800 121 737-8 7 (iii) Discussion and analysis of business The Company coordinate efforts to prevent and control the epidemic and the work of production and operation in 2020 with a positive achievement resulted. ——The situation of epidemic prevention & control is stable, and the responsibility of an enterprise has been demonstrated. There was no epidemic spread caused by the company’s flights; and no confirmed or asymptomatic infection among employees of the company. It has performed 39 epidemic prevention and control transportation charter flights and used the main shift to transport 19 shifts of personnel and materials, transported a total of 3,714 medical personnel, and 159.62 tons of epidemic prevention and control materials. ——The security situation remains stable. The main business of transportation guarantees a total of 327,400 hours of a safe flight with 159,900 sorties, a declined of 24.6% and 22.4% on a y-o-y basis respectively without serious symptoms of transport aviation occurred. The safety quality evaluation index was 12.06, an increase of 0.45 from a year earlier. ——Maintain a high level of operating quality. The normal flight rate of main business of transport was 91.69%, a 6.41 percentage points up on a y-o-y basis, and ranked the first among the major airlines in civil aviation industry. Guaranteed 27 VVIP flights with a flight on-time rate of 100%. ——In terms of benefits.The company has an operating income of 10.506 billion yuan, a decrease of 44.7% from a year earlier; total profit has -3.151 billion yuan, a decrease of 3.632 billion yuan (profit from transport has a y-o-y decrease of 3.654 billion yuan)on a y-o-y basis; completed RTK of 2.55 billion ton kilometre, a passenger volume of 18.195 million person-time and 166000 tons in cargo & mail volume, a 29.7%, 29.6% and 8.9% declined respectively on a y-o-y basis; the PLF has a 75.8% with 8.2 percentage points down from a year earlier, the cargo & mail load rate was 47.4%, a 7.1 percentage point up on a y-o-y basis. ——The service quality is stable on the whole. The passenger satisfaction score is93.7, which is the same as last year basically. The rate of passenger complaints remained low among the major airlines- forwarded by the Civil Aviation Administration. Won the CAPSE “Best Domestic Airline” for six consecutive years. Successfully passed the “National Quality Award” confirmation review, and honor the “Asia Service Awards”, awarded the “Five-Star Service Site” and “Four-Star Service Site” respectively from Lu-Yan boutique route and 95369customer service center. The following works have been carried out: 1. Strengthen responsibilities, coordinate & implement policies to combat the COVID-19 Firstly, coordinate and improve the working mechanism of epidemic prevention & control and production & operation. Resolutely implemented the spirit of General Secretary Xi Jinping’s important speech and instructions on coordinating epidemic prevention & control and economic growth, clarify the goals and task of fighting the three tough battles of “epidemic prevention & control, safe production and business efficiency”. Intensive scheduling in terms of material reserves, safety management, production organization, rush in the harvest & expenditure reduction, fund raising and public opinions responding, implementing the refine management and control. Secondly, make comprehensive arrangements and do our best to prevent and control the epidemic. We will strictly implement the requirements of the National Health Commission and Civil Aviation Administration, insist on the air-ground joint defense and person-material defense, strictly implement the prevention & control measures such as aircraft disinfection & ventilation, risk investigation for passengers & freight. Thirdly, acting according to the order, serving the overall situation and reflecting the responsibility. Resolutely implement the policies of free ticket refunds from the CAA and “Five Ones”; actively implement the task of ensuring transportation for epidemic prevention & control and the resumption of work & production. 2. Grasp the key works, and consolidate the quality foundation for safe operation Firstly, improve the management system of safe operation continuously. Strengthen safety responsibility, promote the transformation of safety management to “data-driven”, improve the quality-control mechanism for operation assurance. Secondly, work hard to develop the “primary construction, basic work and basic skills training”. Implement the safe rectification of “grasping work style, strengthening the three basics and keeping the bottom line”. Comprehensively promote the optimization and reform of flight training system, improve the management mechanism of teachers and inspectors, standardize the AOC management system, completed the development of qualification and training management system for transport control professionals. Thirdly, strengthen the capacity building of emergency management system. Organize and carried out the mirroring exercises and review training. Comprehensively sort out the external emergency supporting resources of each branch and terminals to enhance the joint force of emergency supporting. Fourthly, staring closely at risks and hidden dangers, carrying out investigation and governance. To thoroughly identify the impact of epidemic on production and operation, caring out safety hazard investigation and quality improvement actions. Carefully study the changes in security risks during the epidemic, conduct in-depth risk assessment to ensure the air defense security during the important periods such as spring festival, the Two Sessions and National Day. 3. Adhere to alteration according to the changes, seek opportunities in the process of changing and do out best to rush in the harvest & expenditure reduction Firstly, scientifically control the production organization rhythm. Promote the formulation of efficiency control plan and strengthen the synergy of production and marketing. Secondly, strengthen revenue control and product innovation. Strive to improve the efficiency of market response, grasp the market trends. Innovate the product forms, launch the products of resume work vouchers and campus flying people, explore new types of live broadcast sales. Thirdly, actively advance the “passenger-to-cargo” business. Launch the international scheduled cargo flights of “passenger-to-cargo” , vigorously organizes the cargo sources and develop customers, and laying a foundation for building a new pattern of passenger and cargo linkage. Fourth, tap the potential of cost savings in full. Review various budget reduction and cost reduction measures. Fifthly, actively prevent the capital risks. Focusing on cash flow risks and enhancing capital reserves through various financing measures. Sixthly, coordinate the needs of epidemic prevention & control, innovate the passenger services experience. Dynamically adjust transportation service guarantee standards and procedures, accelerate the improvement of online channel service function and realize the paperless customs clearance services at general aviation airports. 4. Push forward the capacity building in governance management, improve comprehensive management efficiency Firstly, continue to optimize the organization and management information construction. Further improve the management efficiency, strengthen grassroots management & control responsibilities, improve the function of crew resource management system, and actively promote the construction of remote office carriers. Secondly, promote investment enterprises to take the initiative to respond to the emergencies and carried out business optimization. Thirdly, promote the key tasks steadily. Advance the formulation of “14th Five-Year Plan”, completed the construction demand estimation of the first phase of Shandong Airline base- a renovation and extension project of Jinan Airport, strictly control the costs of aircraft introduction and fully complete the work of transferring retirees to social management. II. Main business analysis 1. Introduction See “I. Introduction” in “Discussion and Analysis of Operation”. 2. Revenue and cost (1) Constitute of operation revenue In RMB 2020 2019 Increase/decrease y-o-y (+,-) Amount Ratio in operation revenue Amount Ratio in operation revenue Total operation revenue 10,534,403,350.87 100% 18,990,415,024.88 100% -44.53% According to industries Air transport service 9,829,874,543.16 93.31% 18,256,980,628.88 96.14% -46.16% Logistics freight service 27,974,801.19 0.27% 26,690,701.39 0.14% 4.81% Hotel & catering service 26,515,773.38 0.25% 31,610,469.95 0.17% -16.12% Training service 4,497,391.59 0.04% 4,292,933.20 0.02% 4.76% Other 645,540,841.55 6.13% 670,840,291.46 3.53% -3.77% According to region Domestic 10,199,538,957.01 96.82% 17,095,651,842.88 90.03% -40.34% International 318,879,147.92 3.03% 1,571,151,462.00 8.27% -79.70% Region 15,985,245.94 0.15% 323,611,720.00 1.70% -95.06% (2) The industries, products, or regions accounting for over 10% of the company’s operating income or operating profit √ Applicable □ Not applicable In RMB Operating revenue Operating cost Gross profit ratio Increase/decrease of operating revenue y-o-y Increase/decrease of operating cost y-o-y Increase/decrease of gross profit ratio y-o-y According to industries Air transport service 9,829,874,543.16 12,484,416,884.36 -27.00% -46.16% -27.07% -33.24% According to region Domestic 10,199,538,957.01 12,118,925,035.52 -18.82% -40.34% -19.94% -30.28% Under circumstances of adjustment in reporting period for statistic scope of main business data, adjusted main business based on latest one year’s scope of period-end □ Applicable √ Not applicable (3) Whether income from physical sales larger than income from labors or not □Yes √ No (4) Performance of the major sales contract signed by the Company till end of the Period □ Applicable √ Not applicable (5) Constitute of operation cost Product category In RMB Product category Item 2020 2019 Y-o-y changes(+,-) Amount Ratio in operation cost Amount Ratio in operation cost Air transport service Aviation fuel consumption 2,480,650,679.48 19.87% 5,195,698,126.98 30.35% -52.26% Take-off & landing fees 1,764,458,597.80 14.13% 2,535,562,544.63 14.81% -30.41% Employee’s salary 1,948,282,428.99 15.61% 2,223,185,474.51 12.99% -12.37% Depreciation of aircraft and engine 735,757,435.25 5.89% 853,476,817.73 4.99% -13.79% Other 5,555,267,742.84 44.50% 6,309,481,237.49 36.86% -11.95% Total 12,484,416,884.36 100.00% 17,117,404,201.34 100.00% -27.07% Logistics freight service Employee’s salary 19,995,267.47 79.94% 22,799,253.36 68.72% -12.30% Other 5,018,161.25 20.06% 10,376,450.44 31.28% -51.64% Total 25,013,428.72 100.00% 33,175,703.80 100.00% -24.60% Hotel & catering service Raw materials 17,836,443.41 71.71% 15,801,094.38 63.63% 12.88% Employee’s salary 5,109,291.94 20.54% 5,973,882.71 24.06% -14.47% Other 1,926,063.95 7.74% 3,056,748.68 12.31% -36.99% Total 24,871,799.30 99.99% 24,831,725.77 100.00% 0.16% Training service Depreciation 4,105,088.76 25.59% 4,080,459.72 23.34% 0.60% Other 11,933,577.85 74.41% 13,401,825.79 76.66% -10.96% Total 16,038,666.61 100.00% 17,482,285.51 100.00% -8.26% Note (6) Whether has any changes in consolidation scope during the reporting period （未完）  |