China Southern Airlines Co Ltd 6-K, filed Apr 1, 2022

China Southern Airlines Co Ltd (CHKIF)

6-K 2022-04-01 For: 2022-03-31

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Added on April 06, 2026

About this 6-K

China Southern Airlines Co Ltd filed this 6-K on April 1, 2022.

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By:		/s/ Xie Bing
Name:		Xie Bing
Title:		Company Secretary

Date: March 31, 2022


	Note		2021 *RMB million*			2020 RMB million
Total operating expenses				116,340			109,111

Other net income		7		4,767			4,686

Operating losses				(9,929	)		(11,864	)

Interest income				675			322
Interest expense		8		(6,202	)		(6,716	)
Exchange gain, net		20		1,575			3,485
Share of associates’ results				9			(776	)
Share of joint ventures’ results				271			309
Changes in fair value of financial assets/liabilities				(309	)		53
Loss on disposal of a subsidiary				—			(8	)

Loss before income tax				(13,910	)		(15,195	)
Income tax		9		2,894			3,368

Loss for the year				(11,016	)		(11,827	)

Loss attributable to:
Equity shareholders of the Company				(12,106	)		(10,847	)
Non-controlling interests				1,090			(980	)

Loss for the year				(11,016	)		(11,827	)

Loss per share
Basic and diluted		10		RMB(0.75	)		RMB(0.77	)


	2021 *RMB million*			2020 RMB million
Loss for the year		(11,016	)		(11,827	)

Other comprehensive income:
Items that will not be reclassified to profit or loss
– Equity investments at fair value through other comprehensive income – net movement in fair value reserve (non-recycling)		(236	)		(250	)
– Share of other comprehensive income of an associate		(2	)		(2	)
– Income tax effect of the above items		60			63

Items that may be reclassified subsequently to profit or loss
– Cash flow hedge: fair value movement of derivative financial instrument		42			(45	)
– Differences resulting from the translation of foreign currency financial statements		—			8
– Share of other comprehensive income of an associate		3			(3	)
– Income tax effect of the above items		(10	)		11

Other comprehensive income for the year		(143	)		(218	)

Total comprehensive income for the year		(11,159	)		(12,045	)

Total comprehensive income attributable to:
Equity shareholders of the Company		(12,189	)		(11,011	)
Non-controlling interests		1,030			(1,034	)

Total comprehensive income for the year		(11,159	)		(12,045	)


	Attributable to equity shareholders of the Company
	Share capital		Share premium		Fair value reserve (recycling)			Fair value reserve (non- recycling)			Other reserves			Retained Earnings/(acc umulated losses)			Total			Non- controlling interests			Total equity
	RMB million		RMB million		RMB million			RMB Million			RMB million			RMB million			RMB million			RMB million			RMB million
Balance at 1 January 2020		12,267		25,652		2			409			2,844			22,932			64,106			13,223			77,329
Changes in equity for 2020
Loss for the year		—		—		—			—			—			(10,847	)		(10,847	)		(980	)		(11,827	)
Other comprehensive income		—		—		(37	)		(135	)		8			—			(164	)		(54	)		(218	)
Total comprehensive income		—		—		(37	)		(135	)		8			(10,847	)		(11,011	)		(1,034	)		(12,045	)
Issuance of shares		3,062		12,889		—			—			—			—			15,951			—			15,951
Acquisition of non-controlling interests in a subsidiary		—		—		—			—			(155	)		—			(155	)		(105	)		(260	)
Capital injection from non-controlling interests		—		—		—			—			700			—			700			3,521			4,221
Distributions to non-controlling interests		—		—		—			—			—			—			—			(57	)		(57	)
Decrease in non-controlling interests as a result of loss of control of a subsidiary		—		—		—			—			—			—			—			(1	)		(1	)
Change in other reserves		—		—		—			—			(7	)		—			(7	)		—			(7	)

Balance at 31 December 2020		15,329		38,541		(35	)		274			3,390			12,085			69,584			15,547			85,131

Changes in equity for 2021:
Loss for the year		—		—		—			—			—			(12,106	)		(12,106	)		1,090			(11,016	)
Other comprehensive income		—		—		35			(118	)		—			—			(83	)		(60	)		(143	)
Total comprehensive income		—		—		35			(118	)		—			(12,106	)		(12,189	)		1,030			(11,159	)
Distributions to non-controlling interests		—		—		—			—			—			—			—			(659	)		(659	)
Conversion of convertible bonds to ordinary shares		1,619		8,837		—			—			—			—			10,456			—			10,456
Capital injection from non-controlling interests		—		—		—			—			—			—			—			810			810
Decrease in non-controlling interests as a result of liquidation of a subsidiary		—		—		—			—			—			—			—			(71	)		(71	)

Balance at 31 December 2021		16,948		47,378		—			156			3,390			(21	)		67,851			16,657			84,508


	2021 *RMB million*		2020 RMB million
Revenue from contracts with customers within the scope of IFRS 15:
Disaggregated by service lines
– Traffic revenue
– Passenger		75,392		70,534
– Cargo and mail		19,887		16,493
– Commission income		2,677		2,771
– General aviation income		572		508
– Cargo handling income		864		507
– Hotel and tour operation income		538		390
– Ground services income		326		210
– Air catering service income		271		273
– Others		885		689

		101,412		92,375
Revenue from other sources:
– Rental income		232		186

		101,644		92,561


	Airline transportation operations			Other segments			Elimination			Unallocated*			Total
	*RMB million*			*RMB million*			*RMB million*			*RMB million*			*RMB million*
Disaggregated by timing of revenue recognition
Point in time		2,763			1,418			(1,171	)		—			3,010
Over time		98,206			3,257			(2,829	)		—			98,634

Revenue from external customers		100,419			1,225			—			—			101,644
Inter-segment sales		550			3,450			(4,000	)		—			—

Reportable segment revenue		100,969			4,675			(4,000	)		—			101,644

Reportable segment loss before taxation		(13,769	)		(111	)		2			(25	)		(13,903	)

Reportable segment loss after taxation		(10,998	)		(67	)		2			52			(11,011	)

Other segment information
Income tax		(2,771	)		(44	)		—			(77	)		(2,892	)
Interest income		763			15			(103	)		—			675
Interest expense		6,291			26			(115	)		—			6,202
Depreciation and amortisation		23,854			380			—			—			24,234
Impairment loss		2,596			18			—			—			2,614
Credit losses		1			(2	)		—			—			(1	)
Share of associates’ results		—			—			—			9			9
Share of joint ventures’ results		—			—			—			271			271
Change in fair value of financial assets/liabilities		—			—			—			(309	)		(309	)
Non-current assets additions during the year^#		21,457			905			(359	)		—			22,003


	Airline transportation operations			Other segments			Elimination			Unallocated*			Total
	RMB million			RMB million			RMB million			RMB million			RMB million
Disaggregated by timing of revenue recognition
Point in time		2,856			1,727			(1,483	)		—			3,100
Over time		89,196			2,448			(2,183	)		—			89,461

Revenue from external customers		91,722			839			—			—			92,561
Inter-segment sales		330			3,336			(3,666	)		—			—

Reportable segment revenue		92,052			4,175			(3,666	)		—			92,561

Reportable segment loss before taxation		(14,727	)		(112	)		1			(348	)		(15,186	)

Reportable segment loss after taxation		(11,388	)		(61	)		1			(372	)		(11,820	)

Other segment information
Income tax		(3,339	)		(51	)		—			24			(3,366	)
Interest income		328			26			(32	)		—			322
Interest expense		6,739			11			(34	)		—			6,716
Depreciation and amortisation		24,438			143			—			—			24,581
Impairment loss		4,015			2			—			—			4,017
Credit losses		153			11			—			—			164
Share of associates’ results		—			—			—			(776	)		(776	)
Share of joint ventures’ results		—			—			—			309			309
Change in fair value of financial assets/liabilities		—			—			—			53			53
Non-current assets additions during the year^#		24,039			547			(49	)		—			24,537


	2021		2020
	*RMB million*		RMB million
Domestic		76,517		65,137
International		24,739		27,090
Hong Kong, Macau and Taiwan		388		334

		101,644		92,561


	31 December 2021			31 December 2020
	*RMB million*			RMB million
Assets
Reportable segment assets		322,948			326,115
Capitalisation of exchange difference of specific loans		39			47
Government grants		(5	)		(6	)
Adjustments arising from business combinations under common control		237			237
Others		(8	)		(10	)

Consolidated total assets		323,211			326,383


	2021		2020
	*million*		million
Issued ordinary shares at 1 January		15,329		12,267
Effect of issuance of shares		872		1,790

Weighted average number of ordinary shares at 31 December		16,201		14,057


	Investment properties			Buildings			Aircraft			Other flight equipment including rotables			Machinery, equipment and vehicles			Total
	RMB million			RMB million			RMB million			RMB million			RMB million			RMB million
Cost:
At 1 January 2020		470			16,046			113,276			24,385			8,253			162,430
Additions		—			12			1,435			542			935			2,924
Transferred from construction in progress		—			5,720			3,719			497			1,340			11,276
Reclassification on change of holding intention:
– transferred from other property, plant and equipment, net		52			(52	)		—			—			—			—
Transferred from right-of-use assets on exercise of purchase option (Note 14)		—			—			2,780			—			—			2,780
Disposals
– disposals		—			(152	)		(6,830	)		(399	)		(558	)		(7,939	)
– disposal of a subsidiary		—			(99	)		—			–			(34	)		(133	)

At 31 December 2020		522			21,475			114,380			25,025			9,936			171,338

At 1 January 2021		522			21,475			114,380			25,025			9,936			171,338

Additions		—			66			2,855			487			668			4,076
Transferred from construction in progress		—			2,097			8,796			434			486			11,813
Reclassification on change of holding intention:
– transferred to other property, plant and equipment, net		(32	)		32			—			—			—			—
– transferred from other property, plant and equipment, net		50			(50	)		—			—			—			—
Transfer to assets held for sale		—			—			(6,309	)		(152	)		—			(6,461	)
Transferred from right-of-use assets on exercise of purchase option (Note 14)		—			—			2,761			—			—			2,761
Others		9			—			—			—			—			9
Disposals		(8	)		(115	)		(6,393	)		(441	)		(556	)		(7,513	)

At 31 December 2021		541			23,505			116,090			25,353			10,534			176,023


	Investment properties			Buildings			Aircraft			Other flight equipment including rotables			Machinery, equipment and vehicles			Total
	RMB million			RMB million			RMB million			RMB million			RMB million			RMB million
Accumulated depreciation and impairment losses:
At 1 January 2020		166			4,917			54,177			13,119			5,263			77,642
Depreciation charge for the year		23			618			5,744			1,493			946			8,824
Reclassification on change of holding intention:
– transferred from other property, plant and equipment, net		21			(21	)		—			—			—			—
Transferred from right-of-use assets on exercise of purchase option (Note 14)		—			—			982			—			—			982
Disposals
– disposals		—			(59	)		(4,588	)		(372	)		(483	)		(5,502	)
– disposal of a subsidiary		—			(15	)		—			—			(11	)		(26	)
Provision for impairment losses		—			—			3,202			75			2			3,279
Impairment losses written off on disposals		—			—			—			(7	)		—			(7	)

At 31 December 2020		210			5,440			59,517			14,308			5,717			85,192

At 1 January 2021		210			5,440			59,517			14,308			5,717			85,192
Depreciation charge for the year		16			712			5,673			1,394			1,040			8,835
Reclassification on change of holding intention:
– transferred to other property, plant and equipment, net		(19	)		19			—			—			—			—
– transferred from other property, plant and equipment, net		35			(35	)		—			—			—			—
Transfer to assets held for sale		—			—			(2,746	)		(66	)		—			(2,812	)
Transferred from right-of-use assets on exercise of purchase option (Note 14)		—			—			1,202			—			—			1,202
Disposals		(6	)		(28	)		(4,270	)		(406	)		(414	)		(5,124	)
Provision for impairment losses (a)		—			—			914			80			—			994
Impairment losses transfer to assets held for sale		—			—			(2,581	)		(60	)		—			(2,641	)
Impairment losses written off on disposals		—			—			(809	)		—			—			(809	)

At 31 December 2021		236			6,108			56,900			15,250			6,343			84,837

Net book value:
At 31 December 2021		305			17,397			59,190			10,103			4,191			91,186

At 31 December 2020		312			16,035			54,863			10,717			4,219			86,146


	Aircraft and engines			Land use rights			Buildings			Others			Total
	RMB million			RMB million			RMB million			RMB million			RMB million
Cost:
At 1 January 2020		215,381			4,022			2,790			392			222,585
Additions		6,526			45			412			190			7,173
Transfer from construction in progress		5,993			2,440			—			226			8,659
Transferred to property, plant and equipment on exercise of purchase option (Note 12)		(2,780	)		—			—			—			(2,780	)
Disposals
– disposals		(4,419	)		—			(180	)		—			(4,599	)
– disposal of a subsidiary		—			(26	)		—			(43	)		(69	)

At 31 December 2020		220,701			6,481			3,022			765			230,969

At 1 January 2021		220,701			6,481			3,022			765			230,969
Additions		3,493			343			1,194			243			5,273
Transfer from construction in progress		302			61			—			152			515
Transferred to property, plant and equipment on exercise of purchase option (Note 12)		(2,761	)		—			—			—			(2,761	)
Transferred to assets held for sale		(1,582	)		—			—			—			(1,582	)
Disposals		(5,959	)		(75	)		(931	)		(26	)		(6,991	)

At 31 December 2021		214,194			6,810			3,285			1,134			225,423


	31 December 2021		31 December 2020
	*RMB million*		RMB million
Assets
Current assets:
Cash at bank and on hand		21,841		25,823
Bills receivable		4		12
Accounts receivable		2,894		2,544
Prepayments		736		732
Other receivables		1,275		1,955
Inventories		1,652		1,760
Assets held for sale		1,292		—
Non-current assets due within one year		138		—
Other current assets		8,034		6,159

Total current assets		37,866		38,985

Non-current assets
Long-term equity investments		5,977		5,673
Other equity instrument investment		563		799
Other non-current financial assets		95		92
Investment properties		305		312
Fixed assets		90,817		85,754
Construction in progress		31,869		32,438
Right-of-use assets		132,725		145,540
Intangible assets		6,564		6,155
Long-term receivables		645		—
Aircraft lease deposits		321		362
Long-term deferred expenses		768		887
Deferred tax assets		12,831		7,749
Other non-current assets		1,602		1,369

Total non-current assets		285,082		287,130

Total assets		322,948		326,115


	Loss attributable to equity shareholders of the Company						Equity attributable to equity shareholders of the Company
	2021			2020			31 December 2021			31 December 2020
	*RMB million*			RMB million			*RMB million*			RMB million
Amounts under PRC GAAP		(12,103	)		(10,842	)		67,616			69,346
Adjustments:
Capitalisation of exchange difference of specific loans		(8	)		(9	)		39			47
Government grants		1			—			(5	)		(6	)
Adjustment arising from the Company’s business combination under common control		—			—			237			237
Income tax effect of the above adjustments		2			2			(8	)		(10	)
Effect of the above adjustments on non-controlling interests		2			2			(28	)		(30	)

Amounts under IFRSs		(12,106	)		(10,847	)		67,851			69,584


	2021		2020
	*RMB million*		RMB million
Jet fuel costs		25,505		18,797
Flight personnel payroll and welfare		10,763		10,232
Air catering expenses		1,577		1,765
Civil Aviation Development Fund		1,059		—
Aircraft operating lease charges		920		977
Training expenses		690		857
Aircraft insurance		184		191
Others		4,871		4,726

		45,569		37,545


	For the year ended 31 December				Increase/(decrease)
	2021		2020		Increase/(decrease)
					(%)
Traffic
Revenue passenger kilometers (RPK) (million)
Domestic		148,223.63		140,135.20		5.77
Hong Kong, Macau and Taiwan		152.48		239.14		(36.24	)
International		4,050.18		13,065.78		(69.00	)

Total:		152,426.29		153,440.11		(0.66	)

Revenue tonne kilometers (RTK) (million)
Domestic		14,389.54		13,720.92		4.87
Hong Kong, Macau and Taiwan		25.48		30.19		(15.60	)
International		6,793.68		7,053.76		(3.69	)

Total:		21,208.71		20,804.88		1.94

RTK – passenger (million)
Domestic		13,124.43		12,390.86		5.92
Hong Kong, Macau and Taiwan		13.48		20.91		(35.54	)
International		359.50		1,138.30		(68.42	)

Total:		13,497.41		13,550.07		(0.39	)

RTK – cargo (million)
Domestic		1,265.11		1,330.06		(4.88	)
Hong Kong, Macau and Taiwan		12.01		9.29		29.30
International		6,434.18		5,915.47		8.77

Total:		7,711.30		7,254.81		6.29


	31 December 2021		31 December 2020
	*RMB million*		RMB million
Lease liabilities		102,749		121,213
Borrowings		96,267		78,233
Long-term payable		291		385

Fixed rate interest-bearing liabilities		144,553		130,072
Floating rate interest-bearing liabilities		54,754		69,759


	31 December 2021			31 December 2020			Change
Total liabilities (RMB million)		238,703			241,252			(1.06	%)
Total assets (RMB million)		323,211			326,383			(0.97	%)
Debt ratio		73.85	%		73.92	%		Decreased by 0.07 percentage point


	31 December 2020				Increase/ (decrease) in 2021			31 December 2021
	Number of Shares		Percentage *(%)*		Number of Shares			Number of Shares		Percentage *(%)*
I. Shares subject to restrictions on sales
1. RMB ordinary shares		2,942,637,115		19.20		(489,202,658	)		2,453,434,457		14.48
2. Foreign listed shares (Note)		1,209,621,577		7.89		(1,209,621,577	)		0		0

Total		4,152,258,692		27.09		(1,698,824,235	)		2,453,434,457		14.48

II. S hares not subject to restrictions on sales
1. RMB ordinary shares		8,111,520,431		52.91		2,108,338,291			10,219,858,722		60.30
2. Foreign listed shares (Note)		3,065,523,272		20.00		1,209,621,577			4,275,144,849		25.22

Total		11,177,043,703		72.91		3,317,959,868			14,495,003,571		85.52

III. Total number of shares		15,329,302,395		100		1,619,135,633			16,948,438,028		100


Letter from the Chairman			5

About Us			7

Board Statement			14

Focus 2021			21

1. Building a Strong Line of Defense - Setting Sail for a Safe Future			35

1.1 Consolidating Safety Management			35

1.2 Adhering to Aviation Safety			37

1.3 Ensuring Passenger Safety			41

1.4 Managing Occupational Health			42

2. Low Carbon Environmental Protection - Setting Sail Towards a Green Future			44

2.1 Improving Environmental Management			44

2.2 Implementing Energy Saving and Emission Reduction			46

2.3 Strengthening Pollution Prevention and Control			47

2.4 Advocating Green Environmental Protection			49

3. Affinity and Refinement - Setting Sail for a Warm Future			51

3.1 Guaranteeing Safe Flight Operations			51

3.2 Smart Travel			52

3.3 Providing Warm Service			54

3.4 Maintaining Customer Relations			59

3.5 Quality Logistics Service			62

4. Innovation and Efficiency - Setting Sail for a Prosperous Future			65

4.1 Compliant and Stable Flight Operations			65

4.2 Deepening Reforms			69


4.3 Sustainable Supply Chain			71

4.4 Strengthening Exchanges and Cooperation			74

5. Moving Forward Hand in Hand - Setting Sail Toward a Wonderful Future			78

5.1 Helping Employees Flourish			78

5.2 Contributing to a Harmonious Society			88

6. Report Appendix

Outlook			98

List of Policies and Regulations			99

Performance Data			103

Index of Indicators			107

Feedback Form			115


2021 Fleet Structure

Passenger Aircraft

Airbus A350 系列		12

Airbus A330 系列		40

Airbus A320 系列		334

Airbus A380 系列		5

Boeing B787 系列		39

Boeing B777 系列		15

Boeing B737 系列		399

EMB190 系列		6

ARJ21 系列		12

Cargo Aircraft

Boeing B777 系列		14

Boeing B747 系列		2

A total of 878 passenger aircraft

862 passenger aircraft

16 cargo aircraft


Core Concepts	Cultural Character: Sunshine China Southern	Corporate Mission Connecting the world for a better life

		Corporate Vision Building a world-class air transport enterprise with global competitiveness

		Spirit of China Southern Diligence, pragmatism, tolerance, innovation

		Core Values: CSAIR Customers first, respecting all talents, pursuing excellence with continuous innovation


Five Major Developments

Safe Development	High-Quality Development	Innovative Development	Cooperative Development	Shared Development

Five Strategies

Hub Network Strategy	Ecosystem Strategy	Innovation Driven Strategy	Lean and Control Strategy	Brand Management Strategy

Six Actions

Special Rectification of Production Safety	Grasping Major Strategic Opportunities	Deepening Key Reform Breakthroughs	Improving the Benchmarking of First Class Management	Adjusting and Optimizing Five Major Structures	Improving Service Quality

Six Changes

From Speed to Quality	From Comprehensive Market Expansion to Key Breakthroughs	From Single Industry to Related Diversified Industry	From Planned Management to Market Operation	From Traditional Business Model to Digital and Ecosystem	From Extensive Management to Refined Management


Safety		Ensuring Safe Flight

		• Continued to promote the “strong system, strict work style and risk control” safety management • Established a long-term safety mechanism from various aspects such as flight, maintenance, operation control and even technological innovations

		Passenger Health and Safety

		• Formulated standards and requirements for personnel protection, environmental disinfection and food safety

		Employee Occupational Health and Safety

		• Regularly carried out employee health examinations and training lectures • In-depth examination of aircrew mental health

Environment		Combating Climate Change

		• Set up a leading group for ecological • Environmental protection work to focus on identifying risks and opportunities brought about by climate change • Formulated the “China Southern Group’s Green Development Work Plan” • Integrated green development into the entire production and operation process of enterprises from the aspects of aircraft energy saving and carbon reduction, ground energy consumption reduction and passenger green travel

		Waste Disposal

		• Formulated a work plan for pollution prevention and control and issued the “China Southern Airlines Group’s 2021-2025 Plastic Pollution Control Work Plan” • Compliant disposal of production and domestic waste • Promoted plastic pollution elimination

		• Sustainable Use of Resources

		• Steady promotion of clean energy replacement • Accelerate research and development and actively promote advanced and applicable plastic substitute products


Service		Reducing Flight Delays

		• Continued to promote the construction of large-scale flight operations

		• Carried out the normal flight improvement project

		Protecting Passenger Privacy

		• Formulated the “Administrative Measures for the Protection of Personal Privacy Data of China Southern” • Compliance and lawful collection and use of passenger personal information

		Convenient Business Management

		• The first domestic airline to launch the whole “luggage home” product • Launched “One ID” full-process face-scanning travel service

		Optimizing the Passenger Experience

		• “China Southern e-Travel” provided door-to-door service for the whole process of air travel • Built platforms, found partners, activated points, attracted customers and integrated resources to accelerate the construction of China Southern’s ecosystem • Special Needs and People with a Disability

		Passenger Rights Protection

		• Responsible for product knowledge promotion • Continued to optimize omni-channel refund and correction services • Carried out the key activities of “providing services and minimizing complaints”

Staff		Supporting Employee Training and Education

		• Organized and implement curriculum development • Strengthening the construction of teaching staff • Established a management training mechanism

		Diversity and Equal Opportunity

		• Adhered to equal pay and equal benefits for equal work • Signed the “Special Collective Contract for the Protection of Female Workers’ Rights and Interests”

		Employee Compensation and Benefits

		• Established a sound salary system and provided competitive salary • Paid five insurances and one housing fund and optimized supplementary medical insurance

Society		Overseas Responsibility

		• Strengthening international cooperation with New Zealand, integrated into local communities and promoted local development

		Rural Revitalization

		• Formulated the “China Southern Group’s Fixed-point Assistance Work Plan” • Carried out cultural assistance

		Pandemic Response

		• Upgraded COVID-19 prevention and control measures • Transported COVID-19 vaccines to support the global fight • Communicated pandemic prevention policies in a timely manner through multiple channels • Carried out “Defense and Escort” volunteer action


Economy		Anti-Corruption

		• Formulated and issue relevant systems for rectifying the “four bad styles” • Strengthening the supervision of the “top leaders” and the leadership team

		Promoting Suppliers’ Responsibility

		• Adhered to the honest procurement and degradable green materials procurement • Standardized supplier management and promoting suppliers to assume social responsibilities

		Innovative Development

		• Carried out the top-level design of digital transformation • Carried out “Cloud T” digital talent training • Fully integrated digitalization into information management, aviation safety, marketing services and green development

		Legal Compliance

		• Improved comprehensive risk management • New intellectual property protection


	Expectations and Demands	Communication Channels and Methods
Investor	Participated in corporate governance Protected shareholders’ rights and interests Control risks ROI - return on investment Important information disclosure	Board of Directors Shareholders’ Meeting Supervisory Board Regular disclosure reports, and temporary announcements

Environment	Energy saving and emission reduction, addressing Climate change Protected ecology and reduce pollution Noise abatement	Carried out green flight, saved energy and reduced emissions Promoted environmental protection on the ground Applied noise reduction measures Public disclosure of environmental information


Client	Continuous safety and quality service Quickly replied to customer comments or complaints Protected customer privacy	Information disclosure Safety management system Customer relationship management, online services

Government	Abided by the law and paid taxes according to the law Implemented national strategies and deepened reforms Maintenance and appreciation of state-owned assets safe flight Promoted employment Improving people’s livelihood	Communication channels and methods Daily report, special report Research visit Project cooperation, working meeting Statistical report

Staff	Safeguard the rights and interests of employees established communication channels Strengthened employee training Continuously improved employee compensation and benefits Employee care Open, transparent, healthy and upward human policy	Employee representative meeting Diversity employee training Remuneration system reform Employee integrated management Employee activity

Supplier	Integrity management and common development Open, fair and just procurement	Transparent procurement Training and technical exchange meeting Daily communication

Financial institution	Improved solvency Reduced business risks	Strengthened compliance management Strengthened risk management and control

Expectations and demands	Helped rural revitalization and development carried out volunteer service Community communication and exchange	Promoted rural revitalization Charity and public welfare activities Information disclosure Public communication

Media	Established information release channels to deliver the messages of China Southern Airlines to the domestic and international public	Press conferences News releases

Peers	Fair competition and friendly cooperation information communication and exchange Healthy and harmonious industry development	Strengthened cooperation Organized exchanges and learning, forums and meetings


		Zhu Deci 42 year party member As “the first person in the capital operation of China Southern”, this 100-year-old hero worked hard for the development of China Southern, the civil aviation industry and the cause of Communism until he was nearly 80 years old.

		Feng Yunwu 50 year party member During Year 1983, as the navigator and the crew, he calmly handled challenges as they emerged and worked tirelessly to ensure the safety of all passengers. The crew was awarded the title of “Heroic Crew of Chinese Civil Aviation”.

		Liu Yuhui 23 year party member As the winner of the “National May 1^st Labor Medal”, Liu developed the first “aircraft remote diagnosis and real-time tracking system” in China’s civil aviation industry, providing technical support for the flight safety of civil aviation aircraft.

		Tang Huizhong 13 year party member During the continuous rescue and treatment of children with broken arms in Hotan, Xinjiang, Tang contacted the airport as soon as possible to apply for the aircraft to be return to the gate which opened a “door of hope” for the treatment of this young boy with a broken arm.


Emission of Greenhouse Gases

		2019		2020		2021
Fuel consumption per ton-kilometer (ton/ton-kilometer)	Wide body model		2.24		2.23		2.00
Fuel consumption per ton-kilometer (ton/ton-kilometer)	Narrow body model		3.10		3.43		3.40
Carbon dioxide emissions (10,000 tons)			2,852.77		1,946.49		1,924.38
	Category 1		2,836.03		1,931.80		1,910.86
	Category 2		16.74		14.69		13.52
CO2 emissions per ton-kilometer (ton/ton-kilometer)			8.69		9.29		8.98

Energy Consumption

Aviation fuel (10,000 tons)			900.33		613.27		605.31
Gasoline (tons)			4,869.11		3,922.78		3,452.12
Diesel (tons)			8,598.59		7,282.09		6,384.37
Coal (tons)			550		0		0


Strategic Leadership		Promoted the construction of “three networks” and “four modernizations” to help China Southern Airlines develop with high quality Built a social Internet that continuously interacts with customers around touch points, built a consumer Internet that creates value for customers around products and services, and built a win-win industrial Internet around internal operating units and external ecological partners; Strengthened the deep integration of new generation information technology and business and realized digital customers, digital employees, digital processes, and digital companies

Management Assurance		Improved organizational structure and mechanism construction and enhanced digital awareness and capabilities Adopting the first-in-command responsibility system, China Southern’s senior managers took the lead personally and set up the enterprise structure and process management committee at the Headquarters, set up the scientific and technological information and process management department, strengthened the top-level design and overall management of digital construction; coordinated processes, IT and data to promote business transformation and upgrading; With the help of the “Cloud T” digital talent training project, cultivated compound talents who understand both business and technology

Business Innovation		Built a new IT architecture, implemented the EA methodology, and promoted the deep integration of technology and business Continued to strengthen IT infrastructure, network security and computing power support; introduced enterprise architecture (EA) methodology, strengthened the integration from intelligent vision planning, business architecture design, technical architecture specification to project implementation, and led the architecture to layered construction and service-oriented and consistent user experience development


Technical Support		Accelerated industrial digitalization, built up the China Southern Airlines ecosystem, and explored business model changes With the help of a new generation of information technology, promoted the transformation of passenger transport to a modern service integrator and freight transport to a modern logistics integrator; opened up the upstream and downstream industrial ecology, build a platform for China Southern’s ecological circle, established a supply chain system around the whole process of passenger travel, connected high-quality partners, and provided passengers with one-stop comprehensive solutions and promoted business model changes

Skill Building		Relied on the new IT architecture, creating new capabilities to quickly respond to business changes Based on the new generation IT architecture planning of “one cloud (China Southern Airlines Cloud) + one data center (China Southern Airlines Data Center) + two middle stations (data middle station, business middle station) + N front-end applications based on new IT architecture”, realized resource sharing and capability platformization


China Southern COVID-19 Vaccine Transportation Guarantee Process

1		Receipt inspection

2		Cargo assembly

3		Warehousing & monitoring

4		Out for uploading

5		Notifying the captain

6		Flight

7		Inbound sorting

8		Inbound reception

9		Warehousing & monitoring

10		Cargo delivery


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