Red Star News:

Which central SOE business sectors have been most affected since the outbreak of the COVID-19? Have these sectors fully recovered based on their performance in the first half of this year? In addition, how is the overseas investment performance of central SOEs? Thank you.

Peng Huagang:

Thank you for your questions. Since the outbreak of the COVID-19, the central SOEs' aviation industry has suffered the heaviest blow. Businesses in all three central aviation enterprises were severely affected in 2020. Total transport turnover and passenger volume last year was less than half of normal annual levels, suffering losses of nearly 30 billion yuan, which was indeed a heavy blow. China is not alone in this regard, with most aviation enterprises around the world having been seriously hit by the pandemic. Nevertheless, it didn't take long for China to resume production and restore the normal operation of its economy and society, and the affected industries are also recovering gradually. In general, the situation this year is better than that of the same period in 2020.

In the first half of this year, the total transport turnover of all three central aviation enterprises increased by 38.8%; passenger volume increased by 63.1%; and cargo and mail volume increased by 25.2%. Their major business volume has recovered to more than 70% of that seen in the same period in 2019. In the first half of this year, the total business revenue among these three enterprises increased by nearly 30% year on year. Although their net profit is still in deficit, their losses were significantly reduced by more than 15 billion yuan compared to the same period last year.

Regarding your question about central SOEs' business development overseas, I think the overall situation is manageable, but it will definitely affect performance to a certain extent. Since the outbreak of the pandemic, we have taken numerous measures. While the pandemic in China has been effectively curbed, the situation abroad is still rather grave. Given this, the SASAC established guiding groups for pandemic prevention overseas at the early stage of the outbreak. Until now, the guiding groups have still been on duty 24 hours a day, maintaining contact with central SOEs overseas, and issuing a series of standard guiding documents and manuals for projects and personnel abroad. This is a summary of effective on-site pandemic prevention measures. To provide timely medical treatment for those infected, we have established a telemedicine platform, coordinated medical resources at home, and built standardized clinics in other countries. These clinics are directly connected to major hospitals in China via telemedicine means and have played a crucial role in dealing with infected staff overseas in a timely manner. In accordance with the domestic requirements of pandemic prevention and control, flights outside China have not fully resumed. The flow of personnel should also follow requirements accordingly. By arranging charter flights and other means, we have managed to coordinate the dispatch of staff and relevant vocation plans. So far, we have dispatched employees on approximately 170,000 overseas trips, of which 20,000 trips were made via charter flights. We have also organized 170,000 trips bringing employees back to China, of which 10,000 trips were made via charter flights. Currently, central SOE projects concerning the construction of the Belt and Road Initiative have not been affected by the pandemic and are continuing. The overall situation in this regard is going well. Thank you.