Hainan Airlines Holding (600221) investor relations material

Executive summary

• Q3 revenue was RMB 20,214,545 thousand, down 0.69% YoY, while attributable net income fell 80.28% to RMB 549,749 thousand as higher aviation fuel costs pressured operating results.

• 9M revenue rose 4.29% YoY to RMB 55,731,891 thousand, but attributable net income declined 71.18% to RMB 819,914 thousand.

Financial highlights

• Q3 total profit was RMB 588,730 thousand, down 80.16% YoY; net income excluding non-recurring items was RMB 417,031 thousand, down 84.86%.

• 9M total profit was RMB 697,236 thousand, down 76.60%; net income excluding non-recurring items was RMB 446,238 thousand, down 83.49%.

• 9M operating revenue increased to RMB 55,731,891 thousand from RMB 53,437,562 thousand, while total operating costs rose to RMB 56,706,588 thousand from RMB 52,334,114 thousand.

• 9M operating profit was RMB 683,619 thousand versus RMB 2,955,637 thousand YoY; consolidated net profit was RMB 684,589 thousand versus RMB 2,976,455 thousand.

Key financial ratios and metrics

• Q3 basic and diluted EPS were RMB 0.0127, down 80.31% YoY; 9M basic and diluted EPS were RMB 0.0190, down 71.12%.

• Weighted average ROE was 9.24% for Q3 and 14.22% for 9M, down 62.63 and 60.03 percentage points, respectively, YoY.

• Operating cash flow was RMB 3,836,755 thousand in Q3, down 32.78% YoY, and RMB 10,067,763 thousand for 9M, down 11.18%.