China Aircraft Leasing Group (CALC) states that it has successfully navigated its journey through an extremely challenging year in 2020. CALC’s total revenue was HK$3,485.8 million, only a slight dip on 2019 revenue of HK$3,523.2 million.
CALC’s operating profit was approximately HK$948.7 million compared to HK$967.6 million in 2019.
Profit attributable to shareholders was HK$334.1 million. Earnings per share were HK$0.482.
Stripping out the HK$300 million unrealized mark-to-market RMB exchange loss and the HK$200 million share of loss and provision for the investment in Aviation Synergy, CALC states that its adjusted profit attributable to shareholders for 2020 should have been HK$846.1 million
As at 31 December 2020, the Group had a cash balance of HK$5,289.4 million, representing an increase of 15.3% from the beginning of the Review Year.
The Board of Directors has continued its scrip dividend scheme for the final dividend for 2020, and has recommended the payment of a final dividend of HK$0.2 (2019: HK$0.48) per ordinary share.
Together with the 2020 interim dividend of HK$0.2 per share (2019: HK$0.23) already paid, the total dividend payout for the year amounts to HK$0.4 per share (2019: HK$0.71).
During 2020, CALC delivered 10 aircraft and disposed of 18 aircraft. As of 31 December 2020, CALC had 128 aircraft in its fleet, including 103 owned and 25 managed aircraft.
By number of aircraft, 78% of CALC’s owned fleet as of 31 December 2020 were leased to Chinese clients, the majority of which are state-owned airlines. CALC’s non-Chinese clients are mainly flag-carriers or backed by strong shareholders.
CALC’s owned fleet had an average age of 5.7 years and an average remaining lease period of 7.6 years as at 31 December 2020. As at 31 December 2020, CALC had 253 narrow-body aircraft in its order book, to be delivered in stages by 2027.
CALC rolled out ARG Cayman 1 Limited (ARG), another aircraft investment vehicle focusing on old aircraft portfolios and trading of parts and components following the full operation of CAG. During the year, CALC injected four aircraft into ARG.
CALC also disposed of two aircraft to a joint venture it established with HNCA Aviation & Equipment Leasing, and also joined forces with Moutai Financial Leasing in a strategic cooperative partnership for the investment in lease-attached aircraft portfolio in May 2020.
CALC also completed the disposal of seven aircraft from its portfolio to Everbright Financial Leasing.
Zhao Wei, Chairman of CALC said: “2020 was the most challenging year. The CALC team had been proactively identifying opportunities in the middle of the crisis and actually turned crises into opportunities. They continued to enhance the Group’s strengths in aircraft operating leasing around the world. In the past few years, CALC has been tirelessly enhancing its aircraft full-industry-chain operation capabilities and extending its service coverage to all major segments of the aircraft aftermarket… In the new year of CALC will continue its prudence in business operations, consolidating its business foundation in various areas to unleash its industry edges in full, treading ahead our journey of accomplishing the vision of becoming a world-leading aircraft leasing full-industry-chain service provider.”
Mike Poon, CEO of CALC said: “Although the external environment is full of challenges and will exact considerable pressure on CALC in the near term, our footing for long-term development remains intact. Unlike traditional lessors, CALC is on the path of competition by differentiation. Our professional qualifications in aircraft leasing, disassembly, maintenance and aviation component distribution are the core competences supporting our sustainable development and ensuring our stability as a Company. The pandemic has been accelerating retirement of old fleet. Yet the imminent market recovery will draw on support from more new aircraft for capacities. This is the right timing for CALC's one-stop fleet upgrade service to establish a foothold. In an era when the civil aviation sector in China is leading the world’s growth momentum, as the only lessor in China with capabilities and a proven track record in aircraft asset management, CALC must continue to sharpen our strengths and reinforce our own edges to tap market opportunities with in-tandem steps, and payback to our shareholders, customers, investors and industry partners who have been relentlessly supporting us for a long time.