"Internet celebrity" Shandong Airlines' stock delisted, losing over 10 billion yuan in three years | Loss | Shandong Airlines
On July 10th, Shandong Airlines, which had been listed for 23 years, was officially delisted and delisted.
Shandong Airlines announced on July 10th that its stock has been delisted by the Shenzhen Stock Exchange due to negative year-end net assets for two consecutive years.
Over 10 billion yuan in losses over three years
Looking back at recent financial reports, Shandong Airlines has suffered severe losses, with losses exceeding 10 billion yuan in the past three years.
Specifically, in 2020, Shandong Airlines achieved a revenue of 10.545 billion yuan and a net profit attributable to the parent company of 2.382 billion yuan; In 2021, Shandong Airlines achieved a revenue of 12.515 billion yuan and a net profit attributable to the parent company of 1.814 billion yuan; In 2022, Shandong Airlines achieved a revenue of 7.719 billion yuan and a net profit attributable to the parent company of 69.07 billion yuan. Over the past three years, its total loss reached 11.103 billion yuan.
Why does the above phenomenon occur?
Shandong Airlines analyzed in its 2022 financial report that "undistributed profits decreased by 312.33% compared to the beginning of the period, mainly due to the continued downturn in the aviation transportation market and an increase in the company's profit losses.".
In the view of Qi Qi, an expert at the China Civil Aviation High Quality Development Research Center, an important reason for Shanhang's losses is the increasing competitive pressure of high-speed rail. Due to the geographical characteristics of Shandong, after the opening of the Beijing Shanghai high-speed railway, the shortest time between Beijing and tourist cities such as Jinan and Qingdao can be controlled at 1.5 hours and 3 hours, which has strong substitutability.
Formerly referred to by netizens as the "never-ending airline"
Shandong Airlines has always had a "internet celebrity" side, and due to its less delayed nature, it was nicknamed "China Russia Airlines".
How punctual is Shanhang? In the 2019 Asia Pacific region's large airline on-time arrival rate ranking, Shandong Airlines ranked among the top 10 and ranked first among domestic airlines.
On social networks, Shandong Airlines is also known as "Lightning Airlines" and is referred to by netizens as the "never-ending airline".
Delisted and delisted, but not withdrawn from the aviation service market
Although Shandong Airlines has been delisted and delisted, this does not mean that Shandong Airlines has withdrawn from the aviation service market.
As early as the first half of 2022, one of Shandong Airlines' major shareholders, Air China, announced plans to acquire control of Shandong Airlines Group and its shares. In March 2023, Air China acquired Shanhang Group and Shanhang Shares for 33 million yuan.
Regarding the above-mentioned acquisition, Air China responded on the investor interaction platform on July 5th that after holding shares in Shanhang Group and Shanhang Shares, the company is further studying promoting the development of Shanhang Shares through multiple collaborative arrangements.
Screenshot of investor interaction platform
The response stated, "Shandong Airlines' future will fully develop within the Air China system, gradually demonstrating its vitality through synergies. With the improvement of the domestic market environment and the gradual emergence of synergies, the performance in 2023 is expected to be better than in 2022."
