Hong Kong, 22 August 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 the Group’s unaudited interim results for the six months ended 30 June 2023 (the "Review Period").

Results highlights

• Total revenue regained momentum - For the Review Period, the Group's total revenue was HK$2,326.3 million, up 23.0% from the same period last year (1H2022: HK$1,890.8 million).

• Profit attributable to shareholders significantly improved - Profit attributable to shareholders of the Company for the Review Period reached HK$201.2 million (loss attributable to shareholders of the Company for 1H2022: HK$130.2 million), with a significant improvement compared with the same period in 2022. Earnings per share amounted to HK$0.270 (Losses per share for 1H2022: HK$0.175). The Board has resolved to declare payment of an interim dividend of HK$0.15 per ordinary share (1H2022: HK$0.15), totaling HK$112 million.

• Continued fleet optimization with first-time exposure to new markets - During the Review Period, 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.
• On-going efforts to facilitate the overseas commercial operation of COMAC ARJ21- The first ARJ21 jet delivered to the Indonesian market previously completed its debut flight in April and flew its first international route later.

• Improving credit rating - During the Review Period, Fitch Ratings (“Fitch”) reaffirmed CALC’s Long-Term Issuer Default Rating at BB+, with a stable outlook. China Asset Leasing Company Limited (“CALC (TJ)”) as the Group’s wholly-owned subsidiary, received an AAA issuer rating from Dagong Global Credit Rating Co., Ltd(“Dagon Global”) and an upgrade to AAA rating from China Cheng Xin International Credit Rating Co., Ltd(“CCXI”), both with a stable outlook.

Business Review

Growing global quality clientele with ongoing optimization of fleet assets

• During the Review Period, the Group delivered a total of 13 new aircraft to airline customers, with a majority of new-generation fuel-efficient models, including its first B737 Max aircraft taken from Boeing. As at 30 June 2023, the Group’s total fleet has increased to 189 aircraft, including 162 owned aircraft and 27 managed aircraft.
• As at 30 June 2023, 90% of the Group’s owned fleet, by number of aircraft, were narrow-body models, a highly liquid asset class. With its quality fleet assets, the utilization rate of the Group’s owned fleet (except for the two aircraft related to Russian airlines) reached 100% as at 30 June 2023.
• The Group has actively participated in facilitating the commercial operation of China-made aircraft. In April, the first ARJ21 jet delivered to the Indonesian airline TransNusa in 2022 completed its debut flight and flew its first international route in July. The Group has also delivered its second ARJ21 to TransNusa during the Review Period. As at 30 June 2023, the Group had a total of 213 aircraft in backlog, including 120 Airbus, 65 Boeing (the commitment to purchase 64 of them shall be novated to a third party in August), and 28 COMAC aircraft.
• During the first half of 2023, the Group further strengthen its globalization development with expanding its footprint to the African and Oceania market to diversify its clientele. Among all the new deliveries during the Review Period, seven aircraft were leased to overseas airlines and six were leased to Chinese airlines, including cooperation with three first-tier airlines in new aircraft leasing for the first time. As of 30 June 2023, by number of aircraft, 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.

Active green financing and improving credit rating

• During the Review Period, total new facilities 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. As at 30 June 2023, the Group had cash and bank balances of 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.
• During the Review Year, 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.
• During the Review Year, Fitch affirmed CALC’s Long-Term Issuer Default Rating at BB+ with stable outlook, while Moody’s Investors Service Co., Ltd. (“Moody’s”) affirmed the Company’s Corporate Family Rating at Ba1 with a stable outlook in July. CALC TJ received an AAA issuer rating from Dagong Global and an upgrade to AAA rating from CCXI, both with a stable outlook. In the future, the Group will strive to improve its international credit rating by various measures, so as to further enhance its financing capabilities with reduced costs.

Further strengthened full value-chain service capabilities

• The Group’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 (36000FH/24000FC/108MO) of A320 series aircraft in June, further enhancing its MRO capabilities.
• During the Review Period, China Aviation Aftermarket Holdings Limited (“CAAM”), the Group’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.

Mr. Mike Poon, Executive Director and Chief Executive Officer of 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.”

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