Figure: For the first time, "domestic equipment" is used to transport "domestic medicine" for export. The cold chain company under China Eastern Airlines Logistics controls temperature throughout the process. China Eastern Airlines provides pictures.
On April 16, China Eastern Airlines Logistics disclosed its 2024 annual report. In 2024, China Eastern Airlines Logistics achieved revenue of 24.056 billion yuan, a record high year-on-year increase of 16.66%, and net profit of 3.064 billion yuan, a year-on-year increase of 7.40%. The weighted average return on net assets was 16.10%, ranking among the top 10% of Shanghai and Shenzhen listed companies that have disclosed annual reports.
At the operational level, the daily utilization rate of all-cargo aircraft was 13.01 hours, the highest level since 2018. The load factor of all-cargo aircraft was 82.17%, which continued to lead the industry. The total turnover of China Eastern Airlines Logistics' cargo and mail transportation was 7.907 billion ton-kilometers, a year-on-year increase of 15.87%, and the cargo and mail transportation volume was 1.5564 million tons, a year-on-year increase of 7.70%. The ground cargo terminal handled 2.4889 million tons, of which the Shanghai cargo terminal had a market share of 51.86%.
In terms of the transformation business, the revenue scale continued to grow. The revenue of the integrated logistics solution segment was 12.476 billion yuan, a year-on-year increase of 36.72%, accounting for 51.89% of the overall revenue of China Eastern Airlines Logistics, a year-on-year increase of 7.61 percentage points. Among them, the cross-border e-commerce solution revenue was 5.92 billion yuan, a year-on-year increase of 26.01%; the direct-to-origin solution revenue was 3.307 billion yuan, a year-on-year increase of 73.32%.
In terms of shareholder returns, China Eastern Airlines Logistics has distributed a total of 1.075 billion yuan in interim cash dividends in 2024 and plans to distribute annual cash dividends in 2024, accounting for 40% of the net profit attributable to the parent company in that year; since its listing in 2021, a total of 2.726 billion yuan in cash dividends have been distributed (including the planned 2024 annual cash dividends); in the future, from 2024 to 2026, the annual cash dividend will account for 30%-50% of the net profit attributable to the parent company in that year, and continue to give back to shareholders.
Figure: The "China-Zhi Express 10th Anniversary Commemorative Number" painted aircraft helps to build the "Belt and Road" with high quality. Photo provided by China Eastern Airlines
In terms of strategic planning, China Eastern Logistics has actively changed its marketing concepts, implemented the "business" thinking, optimized the organizational structure of its business segments, carried out regional system reforms, formed four major regions in South China, North China, Northwest China, and Southwest China, enhanced cross-regional territorial joint operations capabilities, and strengthened regional coordination; deepened the cooperation of passenger and cargo networks, continued to consolidate and strengthen mature markets in Europe and the United States, actively explored emerging markets such as the Middle East, South America, and Southeast Asia, stimulated the effect of "1+1>2" for passenger and cargo aircraft, and expanded the sales network through various intermodal cooperation methods such as SPA and cab class; seized the growth trend of logistics demand in the fields of fresh food and medicine, established a wholly-owned subsidiary, China Eastern Cold Chain, and the import volume of fresh products in 2024 reached 32,000 tons, an increase of 48.15%; 1,865 charter flights directly to the origin, an increase of 73.97%; promoted digital transformation, and started the construction of the first phase of the new carrier marketing system project for the entire process, explored the construction of automated models such as automatic flight assembly, automatic cabin batching, and real-time revenue, and AI empowered the aviation main business scenarios, and made breakthroughs in digital marketing, revenue analysis, and intelligent cargo terminal scenarios.
In terms of practicing ESG, China Eastern Logistics has continuously improved its energy efficiency by building a modern green fleet, accelerating the construction of a green and low-carbon fleet, promoting the construction of green cargo warehouses, and improving green logistics service capabilities. In 2024, it will reduce carbon dioxide emissions by 32,140 tons in total. It has actively participated in the high-quality joint construction of the "Belt and Road Initiative", and has been deeply involved in South America for ten years. It has become one of the largest importers of Chilean air-transported cherries in China and one of the main importers of Chilean salmon in China. It has opened the "Shanghai-Budapest" all-cargo route to broaden the logistics channel between China and Europe; it has created an air cargo product of "civil aviation + e-commerce + rural revitalization" to provide an innovative rural revitalization freight model for agricultural and sideline products in Cangyuan and Shuangjiang. Since the signing of the contract in August 2023, it has completed the transportation of agricultural and sideline products with a total value of more than 34 million yuan, and won the 2024 Cailianshe ESG "Zhiyuan Award" "Social Responsibility Pioneer Award", "Guoxin Cup ESG Golden Bull Award", "Golden Bee 2024 Yangtze River Delta Excellent Enterprise Sustainable Development Report List" and many other honors.
(Source: China Eastern Airlines)