Annual Report 2010
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A NNU A L R EPO R T 2010年報 2010 ANNU A L REPO R T 2010 年報 CONTENTS TravelSky Technology Limited • Annual Report 2010 Corporate Profile 2 Financial Highlights 3 Chairman’s Statement 4 Business Review 6 Management Discussion and Analysis of Financial Condition and Results of Operations 12 Corporate Governance Report 18 Report of Directors 31 Report of the Supervisory Committee 51 Independent Auditor’s Report 52 Consolidated Statement of Comprehensive Income 54 Consolidated Balance Sheet 55 Balance Sheet 56 Consolidated Statement of Changes in Equity 57 Consolidated Cash Flow Statement 58 Notes to the Consolidated Financial Statements 59 Supplementary Information from the Management 120 Corporate Information 121 Biographies of Directors, Supervisors, Senior Management and Joint Company Secretaries 126 1 TravelSky Technology Limited • Annual Report 2010 CORPORATE PROFILE TravelSky Technology Limited (the “Company”, or including its subsidiaries, the “Group”) is the dominant provider of information technology solutions for China’s aviation and travel industry. The Group has been devoted to developing leading products and services that satisfy the needs of all the industry participants – ranging from commercial airlines, airports and air travel products and services suppliers to travel agencies, corporate clients, travelers and cargo shippers – to conduct electronic transactions and manage the demand for travel-related information. The core businesses of the Company include aviation information technology service, distribution information technology service, clearing and accounting and settlement service for aviation industry, etc. The Company was incorporated in the People’s Republic of China (the “PRC” or “China”) on October 18, 2000. As of the date of this report, it has a direct controlling equity interest in each of the following significant subsidiaries: TravelSky Technology (Hong Kong) Limited, TravelSky Technology (Singapore) Limited, TravelSky Technology (Korea) Limited, TravelSky Technology (Japan) Limited, TravelSky Technology (Europe) GmbH, TravelSky Technology (USA) Ltd, Accounting Centre of China Aviation Limited Company (“ACCA”), Shanghai TravelSky Information Technology Limited, Guangzhou TravelSky Information Technology Limited, Hainan Civil Aviation Cares Co., Ltd., Cares Shenzhen Co., Ltd., Cares Hubei Co., Ltd., Cares Chongqing Information Technology Co., Ltd., Aviation Cares of Yunnan Information Co., Ltd., Civil Aviation Cares of Xiamen Ltd., Civil Aviation Cares of Qingdao Ltd., Civil Aviation Cares Technology of Xi’an Ltd., Civil Aviation Cares Technology of Xinjiang Ltd., InfoSky Technology Co., Ltd. and TravelSky Technology (Beijing) Real Estate Limited. The Company also holds an equity interest in each of the following associated companies: Shanghai Civil Aviation East China Cares System Integration Co., Ltd., Shenyang Civil Aviation Cares of Northeast China, Ltd., Aviation Cares of Southwest Chengdu, Ltd., Heilongjiang TravelSky Airport Technology Limited, Yunnan TravelSky Airport Technology Limited, Shanghai Dongmei Aviation Tourism Online Co., Ltd, Dalian TravelSky Airport Technology Limited, Hebei TravelSky Airport Technology Limited and Guangzhou Airport AirSpan Information Technology Co. Ltd. The Group had 4,324 employees as of December 31, 2010. The H shares of the Company were listed on The Stock Exchange of Hong Kong Limited (the “Stock Exchange”) on February 7, 2001. As of the date of this report, the largest shareholder of the Company is China TravelSky Holding Company, which holds an equity interest of approximately 29.29% in the Company. A total of approximately 38.84% of the equity interest in the Company is held by 13 Chinese commercial airlines, including the holding companies of the three largest Chinese commercial airlines, namely, China Southern Air Holding Company, China Eastern Air Holding Company and China National Aviation Holding Company. The remaining 31.87% of the equity interest in the Company is held by holders of its H shares. The Company established a Sponsored Level I American Depositary Receipt Programme. American depositary shares under the programme commenced trading on the U.S. over-the-counter market (OTC) on December 27, 2002. 2 100101010010010100110101000101001010100100101001101010001010010101001001010011010100010100101 100101010010010100110101000101001010100100101001101010001010010101001001010011010100010100101 100101010010010100110101000101001010100100101001101010001010010101001001010011010100010100101 100101010010010100110101000101001010100100101001101010001010010101001001010011010100010100 100101010010010100110101000101001010100100101001101010001010010101001001010011010100010100 1001010100100101001101010001010010101001001010011010100010100101010010010100110101000101 1001010100100101001101010001010010101001001010011010100010100101010010010100110 1001010100100101001101010001010010101001001010011010100010100101010010010100110 10010101001001010011010100010100101010010010100110101000101001010100100 3 100101010010010100110101000101001010100100101001101010001010010101001 100101010010010100110101000101001010100100101001101010001010010101001 100101010010010100110101000101001010100100101001101010001010010101001 10010101001001010011010100010100101010010010100110101000101 10010101001001010011010100010100101010010010100110101000101 10010101001001010011010100010100101010010010100110101000101 10 7,881,357 10 1,411,724 Annual Report 2010 09 7,027,283 09 1,163,121 08 6,295,531 08 963,449 07 6,055,922 07 1,003,670 1 1 0 0 0 0 0 0 06 5,450,540 06 901,941 Earnings before interests, tax, depreciation and amortization RMB’000 Total assets Total RMB’000 TravelSky Technology Limited • Technology TravelSky FINANCIAL HIGHLIGHTS 0.46 10 1,050,142 10 0.40 09 903,649 09 0.33 08 722,741 08 100101010010010100110101000101001010100100101001101010001010010101001001010011010100010100101 100101010010010100110101000101001010100100101001101010001010010101001001010011010100010100101 100101010010010100110101000101001010100100101001101010001010010101001001010011010100010100101 100101010010010100110101000101001010100100101001101010001010010101001001010011010100010100 1001010100100101001101010001010010101001001010011010100010100101010010010100110101000101 10010101001001010011010100010100101010010010100110101000101001010100100101001101010001 07 0.36 07 821,445 1001010100100101001101010001010010101001001010011010100010100101010010010100110 1001010100100101001101010001010010101001001010011010100010100101010010010100110 10010101001001010011010100010100101010010010100110101000101001010100100101001 06 0.30 06 724,382 Profit Profit before taxation RMB’000 Earnings Per Share Basic and Diluted RMB 100101010010010100110101000101001010100100101001101010001010010101001 100101010010010100110101000101001010100100101001101010001010010101001 100101010010010100110101000101001010100100101001101010001010010101001 10010101001001010011010100010100101010010010100110101000101 10010101001001010011010100010100101010010010100110101000101 10010101001001010011010100010100101010010010100110101000101 10 896,882 10 3,054,403 09 775,900 09 2,619,524 08 637,974 08 2,271,237 1 0 0 0 0 0 0 07 694,887 07 2,256,588 The financial figures for the year 2006, 2007 and 2008 have been adjusted, as if ACCA had been acquired at the earliest period presented. 06 06 Revenues RMB’000 Profit Profit Attributable to Equity Holders of the Company RMB’000 580,810 1,948,831 Note: TravelSky Technology Limited • Annual Report 2010 CHAIRMAN’S STATEMENT DEAR SHAREHOLDERS, 2010 was the last year of the 11th Five-Year Plan period for the Group. It was also a year that witnessed the Group’s proactive and progressive execution of the strategy of “growing stronger and larger to go global”, making progress in fields of safety, market exploration, service improvement, product research and development and managerial reform by capturing the favourable opportunities emerged following the macro-economic rebound and the growth in tourism market fuelled by increased consumer spending. And also in this same year, the Group achieved encouraging operating results for another consecutive year and accomplished its mission of providing information security service for Shanghai Expo and Guangzhou Asia Games. 2011 is the first year of the 12th Five-Year Plan period for the Mr. Xu Qiang Group. It is also a year that is crucial to leveraging on our past Chairman experience and preparing for future development. The favourable policies promulgated by the Chinese government and designated to build the nation into a civil aviation power, to accelerate the development of the tourism industry, to revitalize the logistics industry and to promote the development of information technology will underpin the growth of market demand and promote the sustained development of the industry, thus presenting a rare historic opportunity for the Group to achieve leapfrog development. On the other hand, the Group’s development may be exposed to notable external challenges due to (among others) the further restructuring of the commercial airlines and their urgent needs to reach out to the world, the impact of high-speed railway system and other means of transport on air transport market, the liberalization trend of the GDS market and the free boundary problem of the IT industry as a result of technological advancements. 4 TravelSky Technology Limited • Annual Report 2010 CHAIRMAN’S STATEMENT To this end, based on the achievements accomplished during the 11th Five-Year Plan period, the Group will continue