Hainan Meilan International Airport Company Limited (Meilan Airport) has reported its interim financial results for the first half of 2024, showcasing both positive operational growth and a significant financial impact from an arbitration settlement. As of June 30, 2024, the company reported total assets of RMB 10.735 billion and total liabilities of RMB 6.754 billion, resulting in net assets attributable to shareholders of RMB 4.025 billion. The asset-liability ratio stood at 62.91%, indicating a stable financial position.
Meilan Airport generated total revenue of RMB 1.149 billion in the first half of 2024, with the aviation business segment contributing RMB 604 million, representing a significant year-on-year growth of 22.09%. This substantial growth demonstrates the company’s strong performance in its core operations. Despite this positive performance, Meilan Airport experienced a net loss attributable to shareholders of RMB 248 million for the period. This loss was primarily driven by an arbitration settlement with Aero Infrastructure Holding Company Limited, which required a compensation payment of approximately RMB 273 million. The full provision for this settlement led to the interim net loss.
However, excluding the impact of the arbitration compensation, the company reported an adjusted net profit attributable to shareholders of approximately RMB 25 million. The arbitration settlement, which reduced the original claim from RMB 2.7 billion, was more favorable than initially anticipated. On the operational front, Meilan Airport exhibited strong performance metrics. During the first half of 2024, the company managed 98,900 aircraft movements, served 14.4937 million passengers, and achieved cargo and mail throughput of 116,400 tons. These figures represent substantial year-on-year increases of 15.89%, 20.3%, and 25.01%, respectively.
In conclusion, while Meilan Airport faced challenges due to the arbitration settlement, the company’s operational growth and financial stability demonstrate its resilience and continued success in the aviation sector. Despite the significant financial impact, the company’s robust operational performance and favorable outcome of the arbitration settlement underscore its strong position within the industry.
