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Sep 30,2021

China Air Cargo's third quarter report (July, August and September)

1. SF Holdings completed the acquisition of 51.5% equity in Kerry Logistics


On the evening of September 28, SF Holdings issued an announcement stating that as of September 28, SF Express’s proposed partial tender offer to acquire 51.8% of Kerry Logistics has been completed and its wholly-owned subsidiary Flourish Harmony Holdings Company Limited has successfully acquired Kerry Logistics. 931 million shares (approximately 51.5% of the issued share capital of Kerry Logistics). On February 9 this year, SF Holdings announced that it would acquire a 51.8% stake in Kerry Logistics, a stock exchange company, for HK$17.555 billion in cash.


2. Air freight services in South China was approved for operation


Air freight services


On August 13, China Southern Air Cargo Co., Ltd. (hereinafter referred to as "China Southern Cargo") formally obtained the "Air Carrier Operation Qualification Certificate" issued by the Central and Southern Regional Administration of Civil Aviation, marking that China Southern Cargo has officially become a China Southern Airlines Co., Ltd. Cargo airlines under the limited liability company that are qualified for public air transport. On November 3, 2020, the Civil Aviation Administration of China issued a public announcement on the preparations for the establishment of China Southern Cargo Airlines, and on May 21, 2012, the Civil Aviation Administration’s official website issued a public announcement on the issuance of a business license for public air transport enterprises. China Southern Cargo Airlines is a wholly-owned subsidiary of China Southern Airlines Co., Ltd., with a registered capital of RMB 1 billion. China Southern Cargo is organized as an independent 121 all-cargo airlines of China Civil Aviation. The main base is located at Guangzhou Baiyun International Airport. It has independent traffic rights and time. It uses the two-character code CZ of China Southern Airlines. With Guangzhou and Shanghai as its dual hubs, China Southern Cargo will operate 14 B777F all-cargo aircrafts.


In March and August, civil aviation transportation showed a trend of both passenger and cargo decline


On September 14, the Civil Aviation Administration introduced at a regular press conference in September that in August, affected by the Nanjing epidemic and its spread, the scale of civil aviation production declined by a large margin, showing a trend of both passenger and cargo. In August, the industry's total transportation turnover, passenger transportation, cargo and mail transportation volume were 4.91 billion ton-kilometers, 22.407 million passengers, and 520,000 tons, respectively, representing a year-on-year decrease of 35.6%, 51.5%, and 5.6%, which are equivalent to the same period in 2019. Of which 42.6%, 36.6% and 82.5% of the total, all-cargo aircraft completed cargo and mail transportation of 217,000 tons, a year-on-year decrease of 1.2%.