Air China plans Shenzhen Airlines equity financing, half-year results out

Air China Limited disclosed a comprehensive plan for its controlled subsidiary, Shenzhen Airlines, to undertake equity financing totaling RMB 16 bn, to be implemented in two phases. Air China will participate in the financing, injecting up to RMB 8.16 bn.

Initially, Shenzhen Airlines will seek one investor for a RMB 2 bn cash injection, with Air China simultaneously contributing RMB 2.08 bn. This initial phase will result in the new investor holding no more than 20.91% and Air China retaining 51.00% of Shenzhen Airlines. The remaining investment of up to RMB 12 bn will follow a 51:49 ratio between Air China and the investor, ensuring Air China's 51% stake remains unchanged.

These announcements coincided with Air China's 2025 half-year report, detailing financial results and management reviews. Additionally, a risk assessment report for China National Aviation Holding Co., Ltd. Finance Co., Ltd. (a financial company of which Air China owns 51%) confirmed its sound financial standing and manageable risks, with total assets of RMB 175.06 bn and net profits of RMB 2,671.77 m for the first half of 2025.

The company also reported half-year accruals for asset impairment provisions totaling RMB 85,154, and credit impairment provisions of RMB 5,563. Furthermore, a special report on the deposit and actual use of raised funds for the first half of 2025 indicated that funds from H-share issuance of HK$ 1,998,769,803.79 were fully utilized, and funds from A-share issuance totaling RMB 5,541,441,303.20 were used as planned, with a remaining balance of RMB 461,323,937.47.