Shandong Airlines Co., Ltd. Summary of Annual Report 2014 Shandong Airlines Co., Ltd.
Summary of Annual Report 2014
1. Important Notice
The summary is abstract from full-text of annual report, for more details information, investors should found in the full-text of annual report that published on website of Shenzhen Stock Exchange and other website appointed by CSRC.
Company Profile
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|Short form of the stock|Shanhang B||Stock code|||200152|
|Stock exchange for listing||Shenzhen Stock Exchange|||||
|Person/Way to contact||Secretary of the Board|||Secretary of the Board||
|Name|Dong Qiantang|||Fan Peng|||
|Tel.|0531－85698229|||0531－85698678|||
|Fax.|0531－85698767 ext.8679|||0531－85698767 ext.8679|||
|E-mail|dongqt@shandongair.com.cn|||fanp@shandongair.com.cn|||

2. Main financial data and changes of shareholders
(1) Main financial data
Whether it has retroactive adjustment or re-statement on previous accounting data for accounting policy changed and accounting error correction or not
√ Yes□No
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|-|-|-|-|-|-|-|-|-|
|||||||Changes|||
||||2013|||over last|2012||
|||2014||||year|||
||||Before the||After the|After the|Before the|After the|
||||adjustment||adjustment|adjustment|adjustment|adjustment|
||11,570,296,757.48||11,427,157,9|11,427,157,933.15|||10,993,024,9|10,993,024,9|
|Operating income (RMB)||||||1.25%|||
||||33.15||||14.41|14.41|
|Net profit attributable to|287,851,542.09|||390,121,811.72|||||
||||389,081,811.||||589,810,932.|589,810,932.|
|shareholders of the listed||||||-26.21%|||
||||72||||47|47|
|company(RMB)|||||||||
|Net profit attributable to|||||||||
|shareholders of the listed|||||||||
|||146,403,043.4|137,850,318.||138,890,318.||490,146,637.|490,146,637.|
|company after deducting||||||5.41%|||
|||3|37||37||15|15|
|non-recurring gains and|||||||||
|losses(RMB)|||||||||
|Net cash flow arising from|1,459,828,215.31||1,411,186,52|1,411,186,522.15|||1,726,317,50|1,726,317,50|
|||||||3.45%|||
|operating activities(RMB)|||2.15||||0.75|0.75|
|Basic earnings per share|0.72|||0.98|||||
||||0.97|||-26.53%|1.47|1.47|
|(RMB/Share)|||||||||
|Diluted earnings per share|0.72|||0.98|||||
||||0.97|||-26.53%|1.47|1.47|
|(RMB/Share)|||||||||
|||||||5.09|||
|Weighted average ROE||10.33%|15.08%||15.42%|percentage|26.36%|26.36%|
|||||||points down|||

Shandong Airlines Co., Ltd. Summary of Annual Report 2014
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|-|-|-|-|-|-|-|-|-|
|||||||Changes|||
||||End of 2013|||over end of|End of 2012||
|||End of 2014||||last year|||
||||Before the||After the|After the|Before the|After the|
||||adjustment||adjustment|adjustment|adjustment|adjustment|
||12,118,867,620.51||11,403,124,4|11,474,898,669.33|||11,261,341,4|11,298,444,1|
|Total assets (RMB)||||||5.61%|||
||||28.82||||30.03|16.84|
|Net assets attributable to|2,878,120,380.35|||2,692,517,344.38|||||
||||2,708,137,66||||2,479,055,85|2,429,050,86|
|shareholder of listed||||||6.89%|||
||||4.00||||2.28|7.39|
|company (RMB)|||||||||

(2) Statement of shares held by top 10 common shareholders
||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||Total common shareholders at||||||||
||Total common shareholders in||||||||||||||
|||15,879|||||end of the 5th trading day before|||||15,924|||
||reporting period-end||||||||||||||
||||||||annual report disclosed||||||||
||Particular about shares held by top ten common shareholders||||||||||||||
||||||||||||||Shares pledge or||
|||||||Proportion|||||Amount of||||
||||||||||Amount of||||||
||Shareholders|||Nature||of shares|||||restricted||frozen||
||||||||||shares held||||||
|||||||held|||||shares held||State of|Amou|
||||||||||||||share|nt|
|Shandong Aviation Group|||State-ownedlegal person||42.00%|||168,004,000||168,004,000|||||
|Air China Limited|||State-ownedlegal person||22.80%|||91,200,000||91,200,000|||||
|Yao Ming|||Domesticnature person||0.62%|||2,486,308||0|||||
|WANXIANG INTERNATIONALINVESTMENT CORPORATION|||Foreign legalperson||0.56%|||2,250,983||0|||||
|BOCI SECURITIES LIMITED|||Foreign legalperson||0.38%|||1,530,744||0|||||
|Chen Jingjian|||Domesticnature person||0.37%|||1,481,800||0|||||
|GUOTAI JUNANSECURITIES(HONGKONG)LIMITED|||Foreign legalperson||0.35%|||1,410,678||0|||||
|Xie Qingjun|||Domesticnature person||0.28%|||1,103,379||0|||||
|NAV CANADA PENSION PLAN|||Foreign legalperson||0.26%|||1,052,295||0|||||
|CREDIT SUISSE (HONG KONG)LIMITED|||Foreign legalperson||0.25%|||999,962||0|||||
|||||||1. Shandong Aviation Group(SDA) is the first largest shareholder of the|||||||||
|||||||Company, who holds the shares of the Company on behalf of the State|||||||||
|||||||with unlisted shares;|||||||||
|||||||2. Air China Limited is the second largest shareholder of the Company,|||||||||
|||||||who holds the shares of the Company on behalf of the State with unlisted|||||||||
||Explanation on related relationship or concerted|||||shares;|||||||||
||action among the abovementioned shareholders|||||3. Among the above top ten shareholders, Air China Limited is the first|||||||||
|||||||largest shareholder of the SDA, and there exists no associated|||||||||
|||||||relationship between SDA and Air China and the other shareholders, and|||||||||
|||||||they don’t belong to the consistent actionist regulated by the Management|||||||||
|||||||Regulation of Information Disclosure on Change of Shareholding for|||||||||
|||||||Listed Companies with the other shareholders.|||||||||

Shandong Airlines Co., Ltd. Summary of Annual Report 2014 (3)Shares held by top ten shareholders with preferred stock held
The Company had no shareholders with preferred stock held in the reporting.
(4) Property right and controlling relationships between the actual controllers of the Company and the Company is as follows
S h a nd o n g A vi a tio n G r o up
42%
Shandong Airlines Co., Ltd.
3. Discussion and analysis by the Management Team
Against the severe and complicated safety benefit situation since 2014, the Company adherence to stable operation, line with “innovative controlling, quality and efficiency achieved”; aggressively implemented structural adjustment of strategy resources; as a whole, the safety, operation, benefit and services achieved intended target; the Company maintains stable operation trends and gains a better operation results.
(1) Thorough going efforts to promote innovation upgrade of safety controlling system, maintains stable safety trends In 2014, theCompany’s transportation core business guaranteed a safety flight of 275,200 hours and 145,200 sorties, respectively increased by6.83% and5.23% year on year, and no safety incidents as transport and aviation accident proneness or above caused by the Company and sub-contractor occurred. The security quality evaluation index is10.74 with a stabile safety position owned. By end of 2014, the Company achieved a safety flight of 2,090,000 hours, won the civil aviation “Flight Safety-Two Star Award” and smoothly realized the 20 anniversary of safety flight. Continued to strengthen safety responsibility, breaking in safety supervision system, made the safety foundation firm and achieved fruitful specific governance in key link
(2) Optimize flight normal controlling mechanism, flight operating efficiency enhance continuously
TheCompany’s average flight punctuality rate was80.92% at all year round, a 2.64 percentage points up y-o-y; guarantee 62 flights of important mission and expert III (included) or above; the prosponed flight over 4 hours takes0.83% in total flights, a 0.74 percentage points declined y-o-y; the rates of flight alternating and returning was2.90%, a 1.18 permillage points down y-o-y. Vigorously focus on source management and process management, on time performance is rising steadily.
(3) Improve production organization efficiency, benefit standards largely in line with the expectation
In 2014, the Company completed total transport turnover volume of 1,940 million tons km, the passenger transport volume of 15,320,000 person-time, mail volume was 141,400 tons(including wet lease services), respectively increased by10.38%,9.14% and8.03% year on year; achieved operating income of 11.57 billion Yuan, net profit of 398 million Yuan; affected by a slowdown in demand and faster growth of transport capacity, the passenger load factor turns to77.21% with 0.55 percentage points down on a y-o-y basis, and the cargo and mail load factor turns to42.67%, a 4.02 percentage points down year on year. Continued to improve acquire ability for resources and its use efficiency, the competitive advantage in market has been consolidated. Promoted innovation of marketing mode with great efforts and the e-Commerce stay ahead of the curve.
(4) Promote five-star obtained plans, service quality enhance continuously
The overall passenger satisfaction survey score reached 91.69, increased 2.16 scores year on year, media authority is fifth-rated on average; the valid customer complaint rate was 0.2028 per ten thousand person-times, lower than the index carried out at beginning of the year. Won the title of “China 500 Most Valuable Brands” for the seventh consecutive year, brand value achieving 18,272 million Yuan with 298,600 million Yuan added over last year in value, raised 9 places to 112th.
4. Relevant items involving financial report
(1)Comparing with lastyear’s financial report, explain changes in aspect of accounting policy, accounting estimates and calculation measures
The fourth extraordinary meeting 2014 of the 5th session of the Board was held on 23 October 2014, deliberated and passed the “proposal of accounting policy change”. A serial accounting rules were promulgated successively or revised in 2014 by Ministry of Finance, and part of the rules are come into effect dated 1 July 2014. Relevant accounting policies have been changed by the Company in line with requirements. Found more details in “Section III. Important Event” carried in 3Q Report of 2014 published on China Securities Journal, Securities Times, Hong Kong Commercial Daily and Juchao Website (http://www.cninfo.com.cn).
Shandong Airlines Co., Ltd. Summary of Annual Report 2014 (2)Particular about major accounting errors correction that needs retroactive re-statement in reporting period
No major accounting errors correction that needs retroactive re-statement in reporting period.
(3)Compare with lastyear’s financial report; explain changes in consolidationstatement’s scope
No changes in scope of consolidation statement in this Period
(4)Explanation from the Board and Supervisory Committee for “Qualified Opinion” from the CPA In reporting period, the Ruihua Certified Public Accountants (LLP) issued a standard unqualifiedauditors’ report for the Company.