Air China predicts that its net profit in the first half of 2007 will rocket up by more than 20 times year-on-year, according to the Xinhua news wire. In the first quarter report, Air China only anticipated a 100 per cent increase in first half net profit.
Such a big leap is attributable mainly to the growth of market demand, continuous appreciation of the Renminbi and increase in earnings on investment, said the company.
Data shows that Air China’s net profit in the first half of 2006 was 45 million yuan (US$6 million), and per share earnings was 0.005 yuan.
However, its capital stock then was only 9.43 billion shares. Now its capital stock has been expanded to 12.25 billion shares after the return to the A-share market and the directional issue of H-shares to Cathay Pacific Airways.