China Southern Airlines Logistics IPO has been accepted, and the three major airlines' logistics businesses will soon gather in the A-share market
At the end of 2023, China Southern Logistics will officially launch its IPO. Following the completion of the A-share listing of China Eastern Airlines Logistics in 2021 and the IPO of Air China Cargo on the Shenzhen Main Board in September last year, the three major airline logistics sectors will soon gather in the A-share market for mixed reform and listing.
China Southern Airlines announced on the evening of January 2 that the Shanghai Main Board IPO of China Southern Airlines Logistics Co., Ltd. (referred to as "China Southern Logistics") was accepted by the Shanghai Stock Exchange on December 31, 2023. In this IPO, China Southern Logistics plans to raise 6.08 billion yuan, of which 5.6 billion yuan will be used to purchase all-cargo aircraft and 480 million yuan will be used for informatization and digital construction.
Revenue in 2022 reaches 21.5 billion yuan
With the help of its global route network and comprehensive aviation logistics hubs in Guangzhou, Shenzhen and Shanghai, China Southern Logistics has created a multi-level aviation logistics product system and has become one of the leading aviation logistics service providers in China. The company's main business can be divided into air express transportation, comprehensive ground services and comprehensive supply chain solutions.
Customers of China Southern Airlines' logistics services cover traditional air freight forwarding, express logistics, cross-border e-commerce, cooperative airlines, manufacturers and other fields, and have many well-known customers. In terms of cargo aircraft, as of the signing date of the prospectus, China Southern Airlines Logistics exclusively operates 17 all-cargo aircraft, all of which are B777F large all-cargo aircraft, and has the leading large cargo aircraft transport fleet in China. With the significant advantages of all-cargo aircraft on long-distance routes, the company can further increase the market share level of its international business. In addition, China Southern Airlines leverages its abundant passenger aircraft fleet resources to carry out passenger aircraft cargo business, forming a leading domestic passenger aircraft cargo transport capacity and network.
In terms of performance, from 2020 to the first half of 2023, China Southern Logistics achieved operating income of 15.325 billion yuan, 19.688 billion yuan, 21.538 billion yuan and 7.788 billion yuan, and net profits in the same period were 4.014 billion yuan, 5.632 billion yuan, 4.648 billion yuan and 1.243 billion yuan respectively. billion.
China Southern Airlines Logistics stated that from 2020 to 2022, affected by the sharp decline in the supply of bellyhold capacity of passenger aircraft, the air cargo market pattern has undergone major changes. The supply-side capacity is in short supply, and demand exceeds supply. Air cargo prices continue to rise, and the industry as a whole is in a boom state. High Point. Against this background, China Southern Airlines Logistics' revenue and net profit from 2020 to 2022 have generally remained at a high level.
China Southern Airlines Logistics' net profit in 2022 has declined compared with that in 2021, mainly due to market factors such as the increase in jet fuel prices in 2022 and the substantial increase in jet fuel costs that year. China Southern Airlines Logistics' net profit and net profit declined year-on-year in the first half of 2023, mainly due to the slowdown in global economic growth, high inflation in European and American countries, and declining consumer demand in overseas markets, resulting in a decline in air cargo demand. In addition, as transportation networks such as shipping and railways gradually become smoother, and bellyhold transportation capacity recovers amid the recovery of the civil aviation industry, the overall supply of transportation capacity in the global supply chain continues to increase.
China Southern Airlines Logistics stated that compared with the high point between 2020 and 2022, the company's performance in the first half of 2023 has declined significantly year-on-year, but it still has higher growth than the performance before 2020, and the company's overall operations are still in a normal and stable situation.
Looking back at the listing process of China Southern Airlines Logistics, we can see that arrangements have been made as early as 2020 when China Southern Airlines launched the mixed reform. On December 22, 2020, China Southern Airlines announced that the mixed reform of China Southern Airlines Logistics was officially settled. The announcement shows that China Southern Airlines Logistics has introduced seven investment entities, including GLP Hidden Mountain Capital, Bell Ding Capital, National Reform Double Hundred Fund, Legend Eagle, Sinotrans, CICC Qichen and CICC Pucheng, and implemented employee stock ownership, with a total capital increase. About 3.355 billion yuan.
According to China Southern Airlines, after the implementation of the mixed-ownership reform, China Southern Airlines Logistics will transform and develop into a modern comprehensive logistics service provider, and the funds raised from the mixed-ownership reform will focus on increasing air cargo capacity, strengthening the construction of ground logistics infrastructure, and building a "heaven and earth integration" Aviation logistics industry system. According to the plan, during the "14th Five-Year Plan" period, based on the stable development of air cargo business, China Southern Logistics will focus on promoting the development of modern warehousing, supply chain management and e-commerce trade sectors, and initially form a complete aviation logistics industry chain.
Subsequently, in December 2022, China Southern Airlines Logistics' listing guidance filing was accepted by the China Securities Regulatory Bureau. One year later, in December 2023, the IPO of China Southern Logistics on the Shanghai Main Board was officially accepted. The prospectus shows that China Southern Airlines Logistics' current issuance and listing method is that China Southern Airlines will spin off its subsidiaries and list them on the main board of the Shanghai Stock Exchange.
The prospectus shows that as of June 30, 2023, China Southern Airlines directly holds 55% of the shares of China Southern Airlines Logistics and is the company's controlling shareholder. China Southern Airlines Group directly and indirectly holds 66.52% of the shares of China Southern Airlines and is the actual controller of the company.
China Southern Airlines Logistics, Air China Cargo and China Eastern Airlines Logistics are the main players in my country's aviation logistics market. The Shenzhen Main Board IPO of Air China Cargo, the logistics business of Air China, successfully passed in September last year and planned to raise 6.5 billion yuan. China Eastern Logistics, a subsidiary of China Eastern Airlines, has completed its A-share listing in 2021.
Reviewing the listing process of China Eastern Logistics, on June 19, 2017, China Eastern Logistics introduced strategic investors such as Legend Holdings, GLP, Deppon, and Greenland Group, and sold 45% of its equity for 2.255 billion yuan. In June 2021, China Eastern Logistics was listed on the Shanghai Stock Exchange Main Board, becoming the "first share" in the mixed civil aviation reform. China Eastern Airlines stated that its listing on the A-share market marks that China Eastern Logistics has completed the "three-step" "mixed ownership reform" path as one of the first batch of mixed-ownership reform pilot enterprises in the country and the first in civil aviation, and has officially grown into a public company. It also means that China Eastern Airlines Group It became the first large state-owned air transport group to achieve "dual listing" of its two core businesses of air passenger transportation and air logistics.