Hong Kong, 14 March 2023 - China Aircraft Leasing Group Holdings Limited ("CALC" or the "Company", together with its subsidiaries, the "Group"; HKEX stock code: 01848), a full value chain aircraft solutions provider for the global aviation industry, is pleased to announce its annual results for the year ended 31 December 2022 (the "Review Year").

Results highlights

• Total revenue increased rapidly by 27.2% year-on-year - For the Review Year, the Group's total revenue amounted to HK$4,171 million, up 27.2% from 2021.
• Adjusted profit attributable to shareholders reached HK$513 million - Adhering to prudent principles, the Company wrote off in full of two aircraft that remain in Russia due to the Russia-Ukraine Conflict. Profit attributable to shareholders of the Company for the Review Year was HK$74 million. If the above-mentioned write-off was excluded, adjusted profit attributable to shareholders of the Company for the Review Year should have reached HK$513 million. The Board recommended a final dividend of HK$0.15 per share.

• Significant growth of fleet portfolio with rental collection rate continued to improve - The Group added a significant number of 24 aircraft from the end of 2021, resulting in a fleet of 176 aircraft in total as at 31 December 2022. 90% of CALC’s owned fleet by number of aircraft were highly-liquid narrow-body models. For the Review Year, the Group’s rental collection rate increased by 5 percentage point to 102.4% year-on-year.

• Further strengthened full value-chain service capabilities - During the Review Year, China’s home-developed jetliner ARJ21 was successfully delivered to Indonesian airline TransNusa (“TransNusa”). The Group placed its first freighter conversion order, marking the beginning of its "passenger-to-freighter" (“P2F”) business. CALC’s MRO business ushers in new stage of development with integration of facilities into Harbin Taiping International Airport Flight Zone.

• Expanding diversified financing channels with continued recognition from international credit rating agencies – During the Review Year, the Group successfully issued the first low-carbon transition bond in China’s aviation industry amounting RMB1 billion and one RMB 1.2 billion corporate bond as well as a RMB 1.5 billion Medium-term note. Moody's Investors Service Co., Ltd. (“Moody’s”) and Fitch Ratings (“Fitch”) reaffirmed CALC’s Corporate Family Rating at Ba1; and Long-Term Issuer Default Rating at BB+, with stable outlook, respectively.
• Steady business development of the Group’s domestic subsidiary - The Group’s subsidiary China Asset Leasing Company Limited (“CALC (TJ)”) reported total revenue of RMB3,164 million and net profit of RMB460 million respectively, while total assets reached RMB37,856 million during the Review Year.

Business Review

Rapid expansion of highly-liquid fleet

• The CALC’s fleet significantly increased 24 aircraft from the end of 2021, resulting in a fleet of 176 aircraft as at 31 December 2022, including 150 owned aircraft and 26 managed aircraft. As at 31 December 2022, CALC had 226 aircraft on its order book, including 131 Airbus, 66 Boeing and 29 COMAC aircraft. During the Review Year, the Group delivered a total of 28 aircraft, among which 18 aircraft were from the order book placement while 10 were completed through purchase and leaseback arrangements.  As at 31 December 2022, the Group was ranked seventh among global lessors by ICF international in terms of the combined asset value of owned fleet and order book.

• CALC has been maintaining a quality fleet portfolio consisting of highly liquid aircraft models. As at 31 December 2022, 90% of CALC 's owned fleet by number of aircraft were narrow-body models, which were relatively less affected by the Pandemic. The utilization rate of CALC’s owned fleet (except for the two aircraft related to Russian lessees) reached 100% as at 31 December 2022. For the Review Year, the Group’s rental collection rate increased by 5 percentage point to 102.4% year-on-year.
• As at 31 December 2022, 76% of CALC’s owned fleet, by number of aircraft, was leased to Chinese airlines (including Hong Kong, Macau and Taiwan), most of which are state-owned airlines with strong financial strengths. CALC’s owned and managed aircraft were on lease to 38 airlines in 17 countries and regions. All aircraft to be delivered in the next 15 months after 31 December 2022 have been mandated for lease with lower remarketing pressure.

Expanding multiple financing channels

• During the Review Year, the Group’s total new financing facilities obtained and renewed exceeded HK$ 21 billion, including aircraft project loans, PDP financing, working capital facilities, RMB bonds, etc., providing strong support for the Group’s business development. As at 31 December 2022, the Group had cash and bank balances amounting to HK$4.668 billion and undrawn borrowing facilities amounting to HK$6.701 billion.
• During the Review Year, the Group made further achievements in the capital market. In addition to issuing RMB1.2 billion corporate bonds and RMB1.5 billion medium-term notes in the Chinese domestic market, the Group successfully issued an RMB 1 billion low-carbon transition bond, which marked the first-ever of its kind in China’s aviation market.
• During the Review Year, Moody's affirmed CALC’s Corporate Family Rating at Ba1 with stable outlook, while Fitch affirmed CALC’s Long-Term Issuer Default Rating at BB+ with stable outlook, underscoring the international rating agencies' recognition of CALC’s stable operations and sound credit profile.

Further strengthened full value-chain service capabilities

• During the Review Year, COMAC delivered one ARJ21-700 aircraft to TransNusa in Indonesia, adding a new model to its fleet and marking the Group’s achievement in facilitating China’s home-grown jetliner for the first time to enter into the overseas market.
• During the Review Year, the Group placed its first freighter conversion order, marking the beginning of its “P2F” business. CALC’s MRO business ushers in new stage of development with integration of facilities into Harbin Taiping International Airport Flight Zone. The Group's associate company, China Aviation Aftermarket Holdings Limited (“CAAM”), reached agreements for the first time with Air China Limited and LATAM Airlines Group S.A. (“LATAM”) on old aircraft transactions, assisting the two airlines to retire 5 old aircraft and 6 airframes respectively, in July 2022.
• During the Review Year, the Group’s MRO joint venture - FL ARI Aircraft Maintenance & Engineering Company Ltd (“FL ARI”) - obtained approval by CAAC for Part-145 base maintenance certificate for Airbus A320neo and Boeing B737NG series aircraft, further enhanced its maintenance and repair business capability.

Mr. Mike Poon, Executive Director and Chief Executive Officer of CALC, said: “The aviation industry is poised for a full recovery and strong growth in 2023, with global borders reopening and in particular, the strong rebound in China's civil aviation market is expected to lead a sharp rise in global passenger traffic. We also expect that airline will rely more on lessors to meet their accelerated needs for fleet optimization and capacity expansion due to a shortage of popular aircraft models and thus boost the market value of such asset class further too. In the coming year, the Group shall continue to enhance the profitability of our core business, planning ahead and proactively getting prepared for expanding our high-quality clientele in regions undergoing accelerating development, to seize more opportunities emerged from the booming global aviation market.”

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