Company Overview
China Southern Airlines Company Limited (CSA), with world headquarters based in Guangzhou, China, is a provider of airline services. The Company’s main businesses consist of passenger transportation, freight transportation, mail transportation and others. The Company operates domestic airlines, airlines among Hong Kong, Macau and Taiwan, as well as international airlines. As of December 31, 2021, the company operated 1,401 routes, of which 1,303 were domestic, 90 were international and 8 were regional (Hong Kong, Macau and Taiwan). Through close cooperation with its global airline partners including American Airlines and Qatar Airways, CSA continues to extend its route network to more destinations around the world.
Based on the statistics of the CAAC, China Southern Airlines is one of the largest Chinese airlines and, as of December 31, 2021, it was ranked first in Asia in terms of number of passengers carried, number of scheduled flights per week, number of hours flown, number of routes and size of aircraft fleet.
In 2020, passenger demand dropped sharply and CSA?s passenger revenue plummeted. Cargo volumes had also fallen, but prices raised, and cargo revenues bucked the trend. In 2021, passenger demand recovered slowly and cargo transport showed a strong demand. Overall, CSA?s operating revenue dropped sharply in 2020 and recovered slowly in 2021.
Source investopedia.
Founders
China Southern Airlines was decentralized from CAAC Airlines and was incorporated under the PRC laws on March 25, 1995. It is now indirectly majority owned by the Chinese government. China Southern Air Holding Company Limited (CSAH), an entity wholly-owned by the Chinese government, directly and indirectly held and exercised the rights of ownership of 64.20% of CSA?s equity stake as of April 22, 2022.
Shareholding Structure:
Source Airchina.com
Major Shareholders of CSA:
Source Airchina.com
CSA completed its initial public offering of H Shares on July 30, 1997 and of A Shares on July 25, 2003.
The principal trading market for CSA?s A Shares is the Shanghai Stock Exchange, they are traded in Chinese yuan and are only available for purchase by Mainland China citizens and selected foreign institutions, known as Qualified Foreign Institutional Investors (QFII), that meet certain requirements by China?s State Administration of Foreign Exchange.
The principal trading market for our Company?s H Shares is the Hong Kong Stock Exchange, they are traded in Hong Kong Dollars and are open for trading to all investors.
Shareholders of H Shares and A Shares enjoy the same voting rights with respect to each share. Under the PRC company law, holders of H Shares and ADSs (American depositary shares) generally are required to resolve disputes with the Company, its senior management and holders of its A Shares only through arbitration in Hong Kong or China.
As shown in the graph above, the largest holders of A Shares of CSA are CSAH, China National Aviation Fuel Group Corporation, and Hong Kong Securities Clearing Company Limited, which, as of March 31, 2022, hold 67.87%, 2.79%, and 4.83% of CSA?s A Shares respectively.
The largest holders of H Shares of CSA are CSAH, HKSCC Nominees Limited, and American Airlines Group Inc., which, as of March 31, 2022, hold 40.95%, 53.33%, and 6.33% of CSA?s H Shares respectively.
Board of Directors
Ma Xulun
Chairman of the Board, Executive Director, President
- He obtained a Master of Engineering degree from Huazhong University of Science and Technology, China
- In 2016, he served as the Director, the President and the Deputy Party Secretary of China Eastern Air Holding Company, and the Vice Chairman, the President and the Deputy Party Secretary of China Eastern Airlines Corporation Limited
- Since December 2020, he has served as the President and Chairman of China Southern Air Holding (CSAH)
- Currently, he also acts as the vice chairman of China Chamber of International Commerce, member of China Council for the Promotion of International Trade and director of the board of International Air Transport Association
Han Wensheng
Executive Director, Vice Chairman of the Board, President
- He obtained a Master of Engineering degree from Tianjin University, China
- He served as the Deputy Director General of Cadre Training Center of the China Southern Airlines Limited
- Since October 2016, he has served as the Vice President and the Party Member of CSAH.
- Currently, he also acts as the standing committee member of the 12th session of Guangdong Provincial Committee of Chinese People?s Political Consultative Conference.
Liu Changle
Independent Non-Executive Director
- He graduated from the Communication University of China with a Bachelor?s degree
- He was conferred an honorary doctoral degree in literature by the City University of Hong Kong and an honorary doctoral degree in management sciences by the University of South China.
- He founded Phoenix Satellite Television in 1996 and had been the Executive Director, Chairman and Chief Executive Officer of Phoenix Media Investment (Holdings) Limited.
- He is currently a member of the Thirteenth National Committee of the Chinese People?s Political Consultative Conference
Gu Huizhong
Independent Non-Executive Director
- He obtained a Master of International Finance degree from Beihang University, China
- He served as the Deputy Chief and Chief of the General Office of the Financial Division of Aviation Industry Department and the General Manager of Zhongzhen Accounting Consultative Corporation
Guo Wei
Independent Non-Executive Director
- He obtained a Master of Management degree from the University of Science and Technology of China
- He served as Executive Director and the Senior Vice President of the Lenovo Group
- Currently, he is the Executive Director, Chairman of the Board of Directors and Chief Executive Officer of Digital China Holdings Limited, the Chairman of Digital China Group Co., Ltd and the Chairman of Digital China Information Service Co., Ltd
Yan Andrew Y
Independent Non-Executive Director
- He obtained a Master of International Political Economy from Princeton University
- From January 1993 to February 1994, he served as the Director of Asia Business Development of US Sprint Corporation
- From March 1994 to September 2001, he served as the Managing Director and Head of Hong Kong office of Emerging Markets Partnership, the management company of AIG Asian Infrastructure Funds
Executive Team
Qualifications of Executive Vice Presidents included
Zhang Zhengrong
Executive Vice President
- He obtained an Executive Master of Business Administration (EMBA) degree from Tsinghua University
- Since April 2014, he has acted as Chief Pilot, COO Flight Safety and Director of Aviation Security Department of CSAH
- Currently, he also serves as the chairman of Guizhou Airlines Company Limited, and Vice President of the fourth Council of Aircraft Owners and Pilots Association of China
Luo Laijun
Executive Vice President
- He obtained an Executive Master of Business Administration (EMBA) degree from Tsinghua University
- He acted as Director of Business Assessment Office of the Company in June 2005; Deputy Director of Commercial Steering Committee and General Manager and Party Member of Financing Plan Department of the Company in November 2005; General Manager and Deputy Party Secretary of Freight Department of the Company in February 2009; the General Manager and the Deputy Party Secretary of Dalian Branch of the Company in July 2012
Wu Yingxiang
Executive Vice President