Air China plans to increase the funds of not over 15 billion yuan to introduce 22 aircraft

On the evening of August 2nd, Air China (SH601111, the stock price of 9.67 yuan, a total market value of 140.455 billion yuan) announced that the formulation of funds for raising of no more than 15 billion yuan was used to introduce 22 aircraft projects and supplementary funds. Among them, the company's controlling shareholder China Aviation Group Co., Ltd. intends to identify the total amount of shares of the purchase of not less than 5.5 billion yuan.

Why should the new aircraft be introduced when the aviation industry's epidemic impact is significantly impacted and the company's losses are greater? This is one of the focus of small and medium investors' attention. According to Air China China, in 2022, the demand for China's civil aviation industry is expected to accelerate recovery. In addition, according to the "Fourteenth Five-Year Plan" Civil Aviation Development Plan, China's civil aviation industry will enter the growth period and release period from 2023 to 2025. The company's early layout can not only meet the replacement needs of old aircraft, but also ensure that the fleet grows reasonably in the next 3-5 years in order to cope with the rapid growth of the demand for civil aviation after the epidemic.

According to Calculation of Air China, the aforementioned 22 aircraft calculated a total of 3.806 billion US dollars according to the unit price of the directory, which was about RMB 25.653 billion. The models include 9 ARJ21 aircraft, 4 A320 NEO aircraft and 9 A350 aircraft. It is expected to be from 2022 -2023 Delivery annual delivery. Air China China said that the use of this fixed increase will not exceed 10.8 billion yuan for the introduction of the 22 aircraft, and the insufficient part will be raised by other channels.

On the other hand, the raised funds are also planned to arrange 4.2 billion yuan to supplement liquidity to optimize the financial structure and reduce the asset -liability ratio.

In the past three years, China Air China's asset -liability ratio has remained at a high level and has risen year by year. As of the end of 2021, its asset -liability ratio reached 77.93%. And this is also affected by the repeated epidemic. Due to the sharp reduction in international routes and the significant fluctuations in domestic routes, Air China ’s operations are facing heavy losses. From 2019 to 2021, the company's net profit attributable to mothers was 6.409 billion yuan, -14.409 billion yuan, respectively. And -16642 billion yuan.

Daily Economic News

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