China Aircraft Leasing Group Holdings Limited (CALC) reported a total revenue of HK$2,326.3 million in the first half (H1) of 2023, up 23.0% from the same period last year. The group’s revenue in H1 of 2022 was HK$1,890.8 million.
The group reported a profit of HK$201.2 million, a significant improvement over the loss of HK$130.2 million reported during the H1 of 2022.
In H1, the group delivered a total of 13 new aircraft including its first B737Max jet taken from Boeing, and extended its footprint into the African and Oceania market. In another significant achievement, the group delivered ARJ21 to TransNusa in Indonesian market. The group also delivered its second ARJ21 to TransNusa during the review period. As of June 30, 2023, the group’s total fleet has increased to 189 aircraft, including 162 owned aircraft and 27 managed aircraft with a backlog of 213 aircraft, including 120 Airbus, 65 Boeing and 28 COMAC aircraft.
Among all the new deliveries the group leased seven aircraft to overseas airlines and six to Chinese airlines, including cooperation with three first-tier airlines in new aircraft leasing for the first time. As of June 30 2023, about 73.5% of the group’s owned fleet was leased to Chinese airline customers including Hong Kong, Macau and Taiwan. The group’s overall customer base including both owned and managed aircraft has been enlarged to 42 airlines in 20 countries and regions.
In the H1, 2023 CALC obtained and renewed facilities amounted to HK$14.63 billion, including aircraft project loans, PDP financing, working capital facilities, RMB bonds, etc., providing strong support for the group’s business development. The group’s cash and bank balances amounted to HK$6,202.7 million and undrawn borrowing facilities of HK$3,990.3 million, with total cash and undrawn borrowings amounting to 10,193.0 million.
The group successfully issued the first tranche of low-carbon transition corporate bonds in the China market, with a term of 3 years and the amount of RMB 1.5 billion, attracting oversubscription of 1.83 times, receiving wide recognition by bond investors from PRC market. Meanwhile, the group repaid the RMB 1 billion super short-term debentures this July as they came due.
Fitch Ratings (Fitch) reaffirmed CALC’s long-term Issuer default rating at BB+, with a stable outlook. Dagong Global Credit Rating issued an AAA rating for China Asset Leasing Company Limited, CALC’s subsidiary. China Cheng Xin International Credit Rating also issued an upgrade to AAA ratings with a stable outlook.
Commenting on the positive results Mike Poon, executive director and chief executive officer, CALC, said: “In the first half of 2023, we’ve been seeing the fast rebuilding and nearly full recovery of the global aviation market, again exhibiting strong resilience of the sector. During the Review Period, CALC has regained momentum and delivered another set of strong interim results backed by the accelerating market recovery. CALC will continue to capitalize on a strong trading market while improve the Company’s liquidity to allow itself more flexibility in future development. We have full confidence to maintain CALC’s long-term sustainable and robust growth, striving to become an international investment-grade company yet continuing to explore market opportunities for business expansion, creating better value for our shareholders and investors.”
CALC’s MRO joint venture FL ARI Aircraft Maintenance & Engineering Company Ltd (FL ARI) obtained the base maintenance license by Civil Aviation Administration of China for 3C-check of A320 series aircraft in June, further enhancing its MRO capabilities.
China Aviation Aftermarket Holdings Limited (CAAM), CALC’s associate company, completed the comprehensive solutions to the 5 old aircraft acquired from Air China Limited to assist the airline’s fleet retirement plan. CAAM successfully maximized the residual value of the assets through a series of complex sustainability solutions including parts swap, passenger-to-freighter (P2F) conversions, portfolio trading, aircraft disassembly, component repair and sales.