After the first loss of operating income in 2020, Shanghai International Airport Co.Ltd(600009) performance was under pressure last year, and the loss continued to expand.
On April 15, Shanghai International Airport Co.Ltd(600009) ( Shanghai International Airport Co.Ltd(600009) , Shanghai International Airport Co.Ltd(600009) . SH) released the annual report for 2021. Affected by covid-19 pneumonia, the company’s operating revenue last year was 3.728 billion yuan, a year-on-year decrease of 13.38%. The net profit attributable to shareholders of listed companies was -1.711 billion yuan, compared with -1.267 billion yuan in the same period last year. The basic earnings per share is -0.89 yuan.
Throughout the year, Pudong Airport ensured a total of 349500 aircraft take-off and landing, a year-on-year increase of 7.32%. The passenger throughput was 322068 million person times, a year-on-year increase of 5.68%. The cargo and mail throughput was 3.9826 million tons, a year-on-year increase of 8.03%. Last year, the production index picked up slightly, but the passenger throughput and the completion of aircraft take-off and landing sorties at Pudong Airport were lower than expected at the beginning of the year.
In this regard, the financial report explained that the epidemic situation in many places in China has limited the recovery and growth of China’s route business. Due to the global epidemic situation, the business volume of international routes is still greatly affected. The business development and customer operation of the company are greatly affected by the continuous impact of the epidemic, and the operation continues to be under pressure.
Quarter by quarter, the Shanghai International Airport Co.Ltd(600009) revenue of last year increased quarter by quarter, and the net loss also increased quarter by quarter compared with the first three quarters, reaching 510 million yuan in the third quarter, and the net loss in the fourth quarter fell slightly to 460 million yuan.
From a year-on-year perspective, the total revenue of the aviation sector was RMB 1.8 billion, accounting for 49.7% of the total revenue. Among them, due to the continuous impact of covid-19 pneumonia, the passenger throughput of international routes decreased year-on-year, accounting for 19.42% of the revenue related to tourists and cargo and mail was 724 million yuan, a year-on-year decrease of 1.9%.
The non aviation revenue accounting for 50.33% reached 1.876 billion yuan, a year-on-year decrease of 27.18%. Among them, the commercial catering income accounting for 17.61% was 656 million yuan, a year-on-year decrease of 48.23%, mainly due to the sharp year-on-year decrease in the rental income of duty-free stores affected by the epidemic.
Last year, the rental income of Shanghai International Airport Co.Ltd(600009) duty-free shop was 486 million yuan, a year-on-year decrease of 57.96%, of which the income in the first half of the year was 221 million yuan.
Recalling the high revenue of Shanghai International Airport Co.Ltd(600009) before the epidemic, Pudong Airport, as a large flow international complex hub airport, can allow Shanghai International Airport Co.Ltd(600009) to enjoy the huge dividend brought by the rental income of duty-free stores every year.
According to the earlier Shanghai International Airport Co.Ltd(600009) announcement, the rent paid by Shanghai to the company from 2017 to 2019 was 2.555 billion yuan, 3.681 billion yuan and 5.210 billion yuan respectively, accounting for 23.30%, 39.53% and 47.60% of the company’s operating revenue from 2017 to 2019.
In the 2020 annual report, it is mentioned that the purchasing power of duty-free consumption at the airport port has changed due to the influence of multiple factors such as duty-free outlying islands in Hainan, duty-free shops in the city and cross-border e-commerce, as well as the continuous decline of import tariffs, and the previous tax-free dividend of Pudong Airport is difficult to continue.
With the impact of the epidemic, the sharp reduction of international passenger flow and the reduction of stopping time in crowded areas, Shanghai International Airport Co.Ltd(600009) and Shanghai have adjusted the cooperation mode.
On January 29, 2021, both parties published a supplementary agreement. According to the announcement, the signing of the supplementary agreement on the operation right transfer contract of the duty-free shop project of Shanghai Pudong International Airport makes the realization of the business income of the duty-free shop from 2021 to 2025 largely depend on the progress of the epidemic and the recovery of passenger flow on the routes of Pudong International Airport and China, Hong Kong, Macao and Taiwan, which is uncertain Xin Shujun, chairman of Shanghai International Airport Co.Ltd(600009) said at the 2020 performance presentation meeting held on April 23, 2021 that in the absence of new force majeure events or major changes in circumstances, the effectiveness of the agreement will remain valid until the expiration of the period agreed in the original contract.
According to the announcement in June last year, Shanghai International Airport Co.Ltd(600009) plans to purchase 100% equity of Shanghai Hongqiao International Airport Co., Ltd., 100% equity of Shanghai International Airport Co.Ltd(600009) Group Logistics Development Co., Ltd. and related assets of the fourth runway of Shanghai Pudong International Airport held by its controlling shareholder Shanghai International Airport Co.Ltd(600009) Group Co., Ltd. by issuing shares.
After the completion of the restructuring transaction, Hongqiao company and logistics company will become the wholly-owned subsidiaries of Shanghai International Airport Co.Ltd(600009) and Pudong fourth runway will become the assets held by the company. This means that Pudong Airport and Hongqiao Airport will be jointly managed, their airline flights will be uniformly optimized, and the freight layout of the two airports in Shanghai will also be optimized. In the follow-up announcement, Shanghai International Airport Co.Ltd(600009) also mentioned the confidence of the restructuring transaction in improving the profitability and core competitiveness of the airport group.
Previously, a senior analyst of AVIC industry told the surging news reporter, “the reorganization of Hongqiao Airport and Pudong airport can solve the problems of horizontal competition in the past years and seems to strengthen the ability to jointly resist risks. However, whether we can save Shanghai International Airport Co.Ltd(600009) the performance in the future depends on the quality of newly purchased and injected assets. I hope the rate of return on capital will not lag behind.”
For the future outlook, Shanghai International Airport Co.Ltd(600009) annual report said that the recovery of civil aviation transportation production still faces the intertwined and superimposed impact of epidemic prevention and control, operating losses and safety pressure, but civil aviation is generally in the period of recovery and growth. In 2022, Pudong Airport is expected to realize 400000 aircraft take-off and landing, with 40 million passengers swallowing and spitting. The recovery of main business volume will largely depend on the progress of the epidemic at home and abroad.
For the follow-up business plan, the annual report points out that in terms of aviation business, we will deeply implement the allocation of aviation resources, promote the recovery of main business, continue to make flexible use of international idle time, and fully allocate it to the Chinese market and freight market. In terms of non aviation business, we will strive to overcome the impact of the epidemic and the transformation of consumption patterns on business formats, continue to optimize business layout and integrate business resources. And seek diversified development, improve commercial profitability, promote industrial and financial innovation, and open up new profit growth points.
As of the closing on April 15, Shanghai International Airport Co.Ltd(600009) reported 52.71 yuan, up 1.37%, with a market value of 101.6 billion yuan, up 12.89% year to date.
