Losing 11 billion yuan in 3 years: The most "hardcore" Shanhang was killed by high-speed rail?

#Headlines on current events and hot topics#Shanhang, just like Shandong people, is sincere and kind.Produced by Zhengxie BureauA few days ago, Shandong Airlines was forced to delist, and its shares were terminated and delisted

#Headlines on current events and hot topics#

Shanhang, just like Shandong people, is sincere and kind.

Produced by Zhengxie Bureau

A few days ago, Shandong Airlines was forced to delist, and its shares were terminated and delisted.

This is also the first airline in China to be forcibly delisted.

It's a bit awkward.

There are three major wonders of transportation in China that have been circulating online, namely:

Wuhan bus.

It is said that every Wuhan bus driver was a folding wing F1 Racing driver in his last life.

Chongqing Taxi.

Third rate roads, second rate cars, first-class driving skills, people sitting in cars, souls chasing behind, known as "ground flying vehicles".

Shandong Airlines.

As long as there is no knife in the sky, Shanhang will never be late.

Arriving early is considered punctual, and arriving on time is considered delayed.

Even the English abbreviation SDA of Shandong Airlines has been interpreted by netizens as "ShanDianAirlines".

A joke is a joke.

But the hard core of Shanhang is real.

Friends who frequently fly may be most afraid of flight delays and delays.

Shan Hang is definitely first-class on time.

In 2019, Shandong Airlines ranked among the top 10 major airlines in the Asia Pacific region, ranking first in China.

According to the report, the normal flight rate of Shandong Airlines was 84.18% in January and 96.27% in February this year, ranking first among major airlines.

You should know that the average punctuality rate of Chinese aircraft is only over 80%.

Ranking of on-time arrival rates of mainland airlines in January 2023

Moreover, the planes operated by Shanhang are all Boeing 737.

It also maintains a 26 year continuous record of safe flight.

In our impression, the most important thing about transportation is safety and punctuality.

But flying well doesn't necessarily mean living well.

In fact, in recent years, Shanhang has indeed had a difficult time.

The most direct scenario is consecutive losses.

In 2020, there was a loss of 2.382 billion yuan, a loss of 1.814 billion yuan in 2021, and a loss of 6.907 billion yuan in 2022.

In just three years, we lost 11.103 billion yuan.

What's more, by the end of 2022, Shandong Airlines will have a negative net asset of 7.807 billion yuan and an asset liability ratio of 124.93%.

In the first quarter of this year, Shandong Airlines had total assets of 30.77 billion yuan and total liabilities of 39.067 billion yuan.

Already insolvent!

This is also the direct reason why Shan Hang was forcibly delisted.

However, the question is, with so many listed airlines, why can't Shan Hang alone do it?

This statement may sound a bit lengthy.

1993 was an important year in the history of Chinese civil aviation:

The state has canceled the requirement that Letter of introduction must be available when buying air tickets. Ordinary people can buy air tickets and take flights with their ID cards.

The civil aviation market has been activated.

China's civil aviation industry has also ushered in a period of vigorous development, with a boom in establishing airlines across the country.

In 1994, there were over 40 airlines nationwide.

Shandong Airlines was founded in March 1994 under this background.

Considering various factors, Shandong Airlines chooses the main branch lines, mainly flights from Shandong to domestic cities, most of which are within 1000 kilometers.

Now, there are three Airline hub of Shanhang:

Jinan Yaoqiang Airport, Qingdao Jiaodong Airport, Xiamen Gaoqi Airport.

It can also be seen from this point.

Due to its positioning as a regional airline, Shan Hang avoided the price war among airlines at the time and became one of the few profitable airlines.

In 1997, Shanhang had a revenue of 364 million yuan and a profit after tax of 53.77 million yuan.

In 1998, the revenue was 455 million yuan and the post tax profit was 51.17 million yuan.

In 1999, the revenue was 743 million yuan, and the post tax profit reached 87.55 million yuan.

By 2011, Shanhang's net profit had risen to 771 million yuan, with a Gross margin of 24.86%.

For a moment, there was no difference in popularity.

Annual calendar card of Shandong Airlines

But the crisis has also quietly arrived.

Now, looking back, it is inevitable to be said that Zhuge Liang was after the event.

But 2011 was indeed a turning point in the fate of Shanhang.

On June 30th of that year, the Beijing Shanghai high-speed railway was officially opened to traffic.

According to statistical data, among the 20 busiest routes of Shan Hang, 10 depart from Jinan and 7 depart from Qingdao. Among them, the busiest routes are:

Qingdao Shanghai, Beijing Qingdao, Shanghai Jinan, Beijing Jinan, Qingdao Nanjing Kunming.

These routes are absolute 'profit cows'.

The Beijing Shanghai high-speed railway covers most of the cities above. Currently, the shortest high-speed railway from Qingdao to Beijing is only 3 hours and 6 minutes, and the shortest high-speed train from Shanghai is only 4 hours and 21 minutes.

Jinan takes the high-speed rail from Beijing to Shanghai, and the shortest time is only 1 hour, 23 minutes, and 3 hours, 3 minutes.

By plane, not only is the distance between the two ends long, the waiting time is long, and it is also greatly affected by the weather.

So, flying in front of high-speed rail has no advantage.

The impact on Shanhang is obvious.

In the second year of the opening of the Beijing Shanghai high-speed railway, in 2012, Shanhang achieved a net profit of 590 million yuan, a year-on-year decrease of 23.52%.

In 2013, the net profit was 389 million yuan, a year-on-year decrease of 34.03%.

In 2014, the net profit was 288 million, a year-on-year decrease of 26.18%.

Of course, these are all reflected in the stock price trend.

This is also the reason why Sichuan Airlines, Shenzhen Airlines, Hainan Airlines and other local airlines are still doing well.

Because airplanes are still the most convenient means of transportation from these places to several relatively core cities in China, such as Beijing and Shanghai (or Guangzhou and Shenzhen).

For example, it takes up to 7 and a half hours for the high-speed rail from Chengdu to Beijing, and up to 11 and a half hours for the high-speed rail to Shanghai.

Taking high-speed rail is obviously better than taking a plane, especially for business travel.

And Shanhang, unfortunately.

Because starting from Shandong, whether it's going north to Beijing or south to Shanghai, taking the high-speed rail is too convenient.

This involves a relatively professional issue.

In 1992, China established the B-share market, officially known as RMB special stocks.

Simply put, it is a domestic company that uses RMB to indicate the face value of its stocks, but subscribes and buys and sells in foreign currencies (US dollars, Hong Kong dollars) mainly to attract foreign investors.

However, after the policy was liberalized, many Chinese companies began to list in places other than Chinese Mainland (such as Tencent, Alibaba, JD, etc.), and the main listing places were the United States and Hong Kong, China.

In this way, there are fewer players in the B-share market, as they can fully buy high-quality Chinese company stocks in the US and Hong Kong stock markets.

With fewer players, the financing capacity of this market becomes weaker.

Here, Shanhang has made a choice that affects its own destiny today.

In September 2000, Shan Hang was listed on the B-share market and was also the third listed airline in China.

So, there is a big difference between Shan Hang and other airlines.

Air China, China Eastern Airlines, China Southern Airlines, Hainan Airlines, Spring and Autumn Airlines and Jixiang Airlines are all listed on the Shanghai Stock Exchange, while China Express Airlines is listed on the Shenzhen Stock Exchange.

Faced with the epidemic, airlines are living a tight life.

The stock market has become an important channel for airline financing and survival.

Due to its listing on the B-share market, Shanhang has almost lost its financing ability.

Life can only be renewed through issuing bonds and bank loans, but the borrowed debts will have to be repaid sooner or later.

Until now, Shanhang has finally been unable to endure.

Of course, we don't have to lament.

Because this time, Shanhang is only exiting in the B-share market.

At present, Air China has taken over Shan Hang and Shan Hang will continue to fly.

Shanhang, just like Shandong people, is sincere and kind.

Lei Jun once said an interesting sentence: A kind person will not have too bad luck!

I also wish Shanhang can overcome difficulties and become better and better.

Friends who share the same feelings, if you want to go on a business trip or travel, you may choose a specific flight to support "Lightning Airlines".

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