Earnings Call: H2 2017

Mar 26, 2018

Good afternoon, ladies and gentlemen. Welcome to join the Global Investor Conference Call of TravelSky Technology Limited for the 2017 annual result announcement today. [Foreign language] The attending management today are CEO Mr. Xiao Yinhong, Secretary to the Board Mr. Yu Xiaochun, Head of Finance Department Ms. Liu Qian, Investor relation manager Ms. Shen Yingjie. [Foreign language] On our conference call today, Mr. Yu Xiaochun, secretary to the board will walk us through the 2017 annual result performance and its business status of the company. All participants will be on a listen-only mode during management's presentation. Then we will have a Q&A session after that. [Foreign language] Now I'd like to invite Mr. Yu Xiaochun to start the presentation. Thank you. 大家下午好，我是公司董事会秘书，欢迎各位参加今天下午的会议。昨天公司的年度业绩已经挂网了，想必各位投资人已经对有关的数据有所了解。虽然个别的财务数据有所调整，但是公司的整体的业务应该说增长还是比较强劲的，保持了稳定的增长。下面我们就投资者关心的和分析员关心的问题展开讨论。那么接下来我们就直接进入提问的关键。谢谢。 Good afternoon, everyone. Yesterday we released the annual results and you will have already seen the results. The general situation remains the same and there are certain small changes to the figures, but overall speaking, the overall business is doing well and I believe you have already read that in our result announcement PPT. I am going to go direct into the Q&A session. 好的，现在我们已经看到有投资人在排队提问了。可能线路原因，这个operator正在往里头接入。我是公司的IR Manager申应杰，非常欢迎大家来参加这次会议。因为我们现在看到已经有100多位的投资人上线，可能问题比较多，那我们待会就紧凑一点提问，尽量简洁一些，给更多的朋友们机会。好，那现在operator准备好了吗？可以接入第一个提问者了吗？可以了，大家如需提问，请在电话上按星1号键。当我们讲出你的名字后，你可以开始发问。如果你需要取消发问，请按星1。If any question, please press star one on your telephone. Thank you. 我们第一个提问是来自China Open的Ben Zheng，请开始，谢谢。于总你好，我想问一下我们新建的数据中心现在进展得怎么样？数据中心的整个招商的情况，今年大概数据中心的贡献会有多少？谢谢。 Mr. Yu, I have a question. I would like to ask about the new data center and how is the progress and how is it going with the business at the moment and what do you predict the contribution to be for this year from the data center? 今年我们数据中心到目前为止，基本上一期整体上都已经竣工了，但是从财务上还有一些工程款会在今年甚至是明年来支付，但是主体的工程现在都已经竣工了，并且我们已经在18年的年底，包括机房，包括运行中心，包括办公用房，应该说整体都完成了搬迁的工作。 At the moment, in 2017, we have completed most of the work. Financially speaking, some of the fees that we need to pay for the engineering construction fees that will be done either this year or next year. We predict by end of this year, we will be able to move into the new building for the data center. 关于数据中心的招商，目前还是在洽谈中，应该说接近尾声了。我们实际上是有一家相对规模比较大的互联网公司在接触，但是目前最终协议还没有谈妥。但是这个可能性应该说还是比较确定的。关于它的收入的规模，因为协议还没签所以我们也不太好在这里来确认。那么等这个协议签署之后，有机会再跟大家来交流。谢谢。 In terms of the business soliciting at the moment, we are in negotiation with partners. It is going into the end of the phase. We are currently speaking with a large scale Internet company. We haven't yet signed the agreement, but the possibility to sign is very high. Because we haven't signed the agreement, it would be difficult to predict the overall contribution. I think we would be able to report on that next year. 另外我再补充一句，即使签署了新的数据中心的服务，它提供的机房的规模也会在今年逐步地投入使用。那也不是说一次性地签完协议之后，所有的外包的服务都提供，它也是逐步实现的一个过程。谢谢。 In addition, I would also like to add that even if we sign an agreement, the actual machine rooms or the data centers and the scale being launched into, we will go into phases. So for the outsourcing business, it would take in phases rather than everything happening in one go. 请问你有其他提问吗？ Do you have any other questions? 暂时没有了，谢谢Yu总。 Thank you. 谢谢。我们下一个提问是来自台湾的Kevin。 Next question comes from Kevin from Daiwa. Thank you. 肖总、Yu总，各位管理层你们好。我有几个问题想请教一下。第一，我看到你们收入来说，同比系统集成有点下降，但是看数据网络跟其他收入是增长得不错的。那我想问一下具体里面是哪一个增长是比较高？因为我记得之前你们提过，可能跟一些航空公司的一些IT服务那边，三方也增长不错，我想知道三方全年是不是开始比较稳定的高增长？另外我想问一下，去年整个新的云中心的折旧，你们是算了多长时间了？最后一个问题想问一下，关于你们外面一些办公楼的租金，今年也应该会继续下降是吧？那个趋势是怎么样？谢谢。 Mr. Xiao and Mr. Yu, good afternoon all the management team. I have three questions. First of all, it is on revenue. I have seen that the revenue is doing well and especially in data and Internet area. We have heard that from the airline companies and they said the IT is going well, and we saw that first half of this year will be doing well. Do you predict the second half of this year will be a steady high growth? Second question is on your appreciation and how long would that be? The third question is on office rental. Do you expect that to come down? Thank you. 感谢您对TravelSky的关注。刚才您提的第一个问题，是有关公司去年收入的情况。这一块，应该是说我们在数据网络和其他的这部分内容里头，增长主要是来自于几个部分，一个是我们公司下属的，有一块第三方支付业务，这块业务公司去年的增长还是比较乐观，所以带来了整体这个板块收入的增长。另外一块，我们还是属于航空公司IT服务方面，这一块和航空公司的需求量的增长是相关的，也有一定的业务量的增长，带来了我们收入的增长。应该说主要是这两部分构成了我们其他业务收入的增长。 To answer your question, just now you mentioned about our data business going well, there are actually two parts of it. The first part is the third-party payment, that has been going very well and very positive, which has given us an increase of the business. The second part is on the Airline IT service, this is correlated with the increased demand from the airlines, which has pulled up the business growth. These are the two areas of the other income that has grown in last year. 您刚才提到的第二个问题，是有关公司折旧摊销这一部分的成本增长的情况。这部分应该说我们新的数据中心投入使用以后，折旧随着我们搬迁的进程，去年是逐步增加的。它不是一次性地迁入新的数据中心，因为迁入的时间点、启用的时间不同，生产区、办公区它有一个时间差。所以应该是说在17年并没有完全体现我们整体搬迁后的这部分折旧的费用。但是和您提到的第三部分的公司租金的支出情况是相关的。就是我们去年应该是说，在北京的这部分整体的搬迁在年底完成的，那么应该说租金在18年能够体现出是下降的。这是在北京的数据中心搬迁过程中间。那么18年同时它也会体现一个比较完整的新的数据中心一期使用的这一部分折旧相应增加，也就是说折旧在18年会完整地体现出来，同时租金也会体现出来。但我们17年因为办公室部分主要是在年底搬家的，所以可能租金下降在17年是没有体现太多。大概情况是这样。 In terms of the second question, which is on depreciation and amortization, which has made the cost to go high up, this I would like to elaborate. This is because the depreciation happens in phases and there is a timeline between the period and the actual timing that which is actually put into launch. That is why you can see the depreciation and the amortization, which has caused the cost to go up. In terms of the rental, as we said, we moved our offices by end of last year in Beijing, with our new data center being put into work in 2018, I believe that the depreciation will be fully reflected in 2018. For the moving, as I said earlier, we moved by end of 2017, so the rental decrease will not be reflected in 2017, but the rental decrease will be reflected in 2018. 我可不可以问一个follow-up？关于数据网络，如果暂时看数据网络增长是多少？还有刚才你提过第三方支付跟Airline IT，分别占了数据网络和其他服务的收入，大概的百分比是多少？ Could I please ask a follow-up question? The follow-up question is on the data network part. In terms of the increase you mentioned about the third-party payment increase and the Airline IT service increase. Could you please tell us what would the proportion of increase be from those two areas? 刚才提到的数据网络和其他这部分业务收入里头，应该说Airline IT这部分我们能够占到大约30%左右的份额。第三方支付业务应该是能够占到12%左右的份额。 With regard to your question for Airline IT, that would account for 30%, and for third-party payment, that would be about 12%. 好的，谢谢。 Thank you. 谢谢。我们下一个提问是来自普鑫的Sheena。 Our next question comes from Sheena with Pure Price. Thank you. Hello! Thanks for the opportunity. I just have two questions. One was on system integration services. It was down for the year 2017, even though management expects this area to really pick up going forward. So what was the reason and trend going forward? The second question is on guidance on cost, because the staff cost, technical support and maintenance fee went up double digits. So what is the reason for this and the trend going forward on these cost items? Thank you. 您好，黄立冲，我有两个问题，一个问题有关于系统的整合。系统的整合2017年做完了，预计对于未来的增长，您的一个预断是什么？另外的一个问题是有关于成本的问题，我们看到在过去一年中相应的成本，比如说员工成本、技术成本，还有维修成本都是双位数的增长，对于未来的成本的走向，你是怎么看的呢？ OK，我回答第一个问题，关于系统集成这个业务，因为这个业务虽然去年它的业务收入有所下降，但是这个业务的整体的驱动力应该说还是存在的，主要的驱动就是随着旅客量的增长，机场的建设，新建的机场，扩建的机场的候机楼的这些项目还会继续保持增长。我们的难处就是由于系统集成业务，它的项目发生的时间以及这个项目完成的时间，我们相对是被动的。所以总体来讲，这个业务它的收入总体趋势是保持增长的，没有问题，未来它的收入依然还是会有波动。 I'll take your first question regarding the system integration business. Last year there is a small decrease. However, we believe the driving force is still there with the passengers, number of passengers growing and with the airport. For example, newly built ones or either the airport expansion, so they're driving the business to go forward. The only issue we face is that the timing of the project when they happen, we are not in the active driving seat. But I can tell you the overall trajectory is still going up. In the meantime, we will still see volatility in terms of the income in this area. 我要回答第二个问题。刚才您提到的就是有关公司成本增长的情况。应该说2017年，公司总体上成本增长是低于我们收入的增长的。在具体的成本分类上面，我们可以看到实际上是和公司的一块，是刚才提到的，我们新的数据中心投入使用，包括我们买的一些机器设备、无线覆盖增加，这些可能会涉及到一些折旧摊销增加导致的我们这块成本的一个增长。另一块可以看到我们成本增长的主要的这一块是技术支持和维护费用这一块。那么在这一项里头，实际上反映了公司业务增长的需求。那么也是随着航空公司IT，还有包括我们新产品、新技术，包括我们在一些新的市场上，我们提供的一些技术服务的需求，导致了我们这一块费用的增加。我觉得这个增长是一个公司经营发展正常的一个增长。那么再有呢，可能里头会涉及到人工成本这一块。您提到双数的这一块呢，实际上也是和我们公司业务的发展，人员是和公司业务发展相匹配的。那么这个里头呢，我们应该可以看到人工成本增长里头有很大一部分是属于我们人员增加，因为业务需求导致人员增加带来的人工成本的上涨。所以我觉得总体来讲呢，公司成本费用的增长和公司的业务规模的增长是保持了一个比较合理的增长的水平。而且呢，我们认为公司还是一直保持比较稳健的成长的策略。对未来的预期，我们也是看好公司业务的发展。谢谢。 To answer your second question regarding the cost, we can see that for 2017, the overall cost growth is still smaller than the overall revenue growth. If you take it by different categories to look at the different costs. For example, with the new data center that has affected our depreciation and amortization, we have also bought certain new equipment as well as certain new intangible assets. In terms of the cost going up, that also comes from the technical support. This comes with the growing demand of our business. For example, with our new IT system, new products, new technology, this is mainly for the purpose of the operation development of our business. In terms of human cost going up the double digit growth, this again is correlated with the development of the business. The number of staff has grown, and this is because of the demand of the business. The cost, overall speaking, its growth is in line with the growth of the business. It is reasonable with the growth of the business. Overall speaking, our company is still very stably developing and growing, and we are very bullish on the future business development of the company. Got it. Thanks very much. 好，谢谢。谢谢。我们下一个提问是来自麦格理的Eric。 Our next question comes from Eric Cheng with Macquarie. Thank you. 好，非常感谢。我有两个问题，第一个问题是关于AIT业务的单票的收入的趋势。因为我注意到，就是说在去年下半年的话，其实同比来讲的话，我们的AIT单票收入是下降了2.1%个点，然后在去年上半年基本上是打平的。所以我想问一下郭经理，就这个2%个点的下降，去年下半年是什么原因？这是第一个问题。然后第二个问题是想问一下关于我们的资本开支的指引，因为在年报里面有提到，我们对2018年是有26.6亿的资本开支的指引，其中有大概6.3亿是来自于顺义这个新办公室的，剩下还有20亿。就想请郭经理能不能把这20亿分拆一下呢？谢谢。 Thank you. I have two questions. The first one is related to the billing income or the billing revenue coming from the AIT business. We can see for the second half of this year compared to the year before, it has decreased by 2.1%. For the first half of the year, it is at the same level. Could I please ask for the reason of the small decline of 2.1% of the second half? The second question is about your capital expense. We can see the capital expense in total is CNY 2.6 billion, and among which about CNY 630 million goes for the new offices. Could you please let us know more about the rest of the plan for the CNY 2 billion capital expense? Thank you. 您刚才提到的第一个问题，就关于这个单价的问题，我觉得可能从我们公司内部的区分呢，无法像您这么综合来计算说一个平均的单价是多少。因为不同的业务，不同的市场，它是有区分的。那么从我们目前业务的现状来看呢，应该是说对我们国内主要的这些航空公司的收费，它是一个递增递减的这样一种模式。应该可以看到民航按照我们民航局公布的这个数据，实际上这"十四五"的规划呢，每年平均的增长都是超过了10%。但是我们对客户的收费情况，航空公司收费的情况呢，它是随着你的量的增加，这个增长它是不断增长，但是增长的情况下呢，它递增递减，这个收费的模式是之前和这个客户合同里头确定的。这是一个情况。另一块就是我们对外航的收费，有几块因素的影响，对外航来讲，它提供的服务可能需求有一些不同。那么针对外航不同的服务，它的收费价格也不是一个价格能够反映出来的。区分对不同的服务收取不同的价格，这是一个方面。再一个方面，可能还会有一些汇率因素的些微的影响。大致情况是这样。 For your question, the first one was asking about the unit price. Actually, it is very difficult for me to give you a detailed and segmented unit price, because it is impossible for us to calculate. In different markets, they have different methods. For domestic market, it is mainly going with the volume. For example, according to the statistics of the China aviation, during the 13th Five-Year Plan, the total has grown by 10%. In terms of the fee that they charge, as the volume growing and the fee model is actually already defined in the contract that they have signed. With regards to the foreign airlines, again, their service fee is different. It cannot really be reflected by one unit price. In addition, this may also be affected by foreign exchange factors. This is a general answer to your first question. 关于第二个问题，就是资本开支。我们目前的计划是18年是27个亿，主要是几个部分组成，一个就是我们新的运营中心，还有继续未完成的一些部分，或者是财务上还会有一些开支。第二个部分就是现有系统的升级和维护，这个方面也是一个主要的部分。现有系统的升级，一个是因为我们新的数据中心，还有系统的一些部署，包括网络系统。另外，在现有系统安全生产方面，系统安全方面还会有一些新的投入。在这个方面，国家也会有一些新的要求。另外，第三个方面就是我们在系统的能力、资源方面还会有一些提升。所以这是两个主要的部分。另外还有一部分就是我们在各地的一些分子公司，它有一些运营的分中心，以及他们的办公用房的一些投资。但总体上来讲，这27个亿它只是一个计划。根据我们往年的经验来看，我们的资本性开支有的时候做了计划也没有达到，因为情况会发生一些变化，所以也不一定是完全都能够得到执行。那么具体资本性开支是多少，全年下来还要根据项目生产的实际情况来进行。谢谢。不好意思，于总，可以先翻译一下吧。 Thank you for your question. For the second question about the capital expenditure, at the moment for 2018, our plan is CNY 2.7 billion, which includes the new center that we have talked about. This also includes some of the uncompleted version of it. Financially, we might also need to expand a little bit more for the new center. It also includes investment into the current IT systems, upgrading and maintenance. We also have our network system deployment in terms of security. The government also has new requirements for enhanced security, which requires investment in terms of our capabilities and resources. These are also going up. In addition, we are also putting more investment into our branches and subsidiaries and for their offices around the country in different locations. As I said again, the CNY 2.7 billion is a plan for our capital expenditure. Judging from our past experience, we are not completely able to execute all the capital expenditure plans sometimes, and the specific capital expenditure will again depend on the actual operation and the actual situation. Thank you. 谢谢。不好意思，于总，我能再追问一个小问题吗？关于我们区域的那些办公室，他们会收购一些自有物业，其实27个亿也包含这些开支。在去年一季度的时候，我们就有规划这部分的一些花销，但是实际上看目前我们的一些资本开销实际额，我们是没有把这个执行嘛。然后今年可能要执行这一部分，能不能有详细的数字跟我们分享下来，大概有多少个亿是在这方面投入的呢？ I have a follow-up question on the branches and subsidiaries in different locations, and we have heard that last year, we heard that they might be acquiring some real estate projects. However, that was the plan for 2017. It did not get executed. Could I please ask that maybe this year you would be executing this plan, and do you have a specific allocation for such plans? 我们27个亿主要是三个部分组成：一个是新的运营中心有9个亿的预算；然后现用系统升级及维护是11个亿；另外其他的部分大概有7.8不到8个亿。总体结构是这样。 I can tell you for the CNY 2.7 billion, the allocation goes as follows: the first part is for the new operation center, which is CNY 900 million, and for the upgrading and maintenance of the current existing IT system CNY 1.1 billion, and for the others, which is less than CNY 800 million. 好，谢谢。 Thank you. 谢谢。我们下一个提问是来自深圳真常荣的Edward。Edward请开始，谢谢。你好，听得见吗？你好。能听见，你是高杰，对吗？你好。对。请开始，谢谢。我看到刚刚说成本我们单价的问题，因为我们看到去年我们的股东也是我们的客户，航空公司受到价改的影响，我们在单价跟他们谈判的时候有没有受到影响？能不能再提一点点？我们单价大地铁有没有在未来一两年之内稍微有一些改观，单价的未来的趋势是怎么样的？这是第一个问题。我想问的第二个问题是关于我们航旅纵横的事，可能是之前没有人提，但是可能每次都会有人提。这个事我们想问一下，航旅纵横现在到底是资产化到哪一个地步了？想跟进一下，就这样，谢谢。不好意思，您第二个问题是什么？您能再重复一下吗？航旅纵横的资产化进度。航旅纵横。航旅纵横的翻译是Umetrip。 OK。航旅纵横的资产化。 Yes, I have two questions. The first one is on the cost. We talked about the unit price earlier. I just wonder, with our shareholders as well as our customers going forward, is there any other room for discussion or negotiation for the unit price? Second one is the asset securitization of Umetrip. What is the progress and what is the situation there? Thank you. 关于单价的问题，我们一直都希望努力吧，跟航空公司协商，希望能够使得单价有所提升。但是目前从我们跟航空公司新一代系统投产之后，从我们跟航空公司协商的情况来看，直到目前甚至短期内，应该说单价都不会改变原来的那种趋势。也就是说，随着旅客量的增长，可能每年还会有微弱的下降这样一个趋势。这是第一个问题。 For your first question with the unit price, actually, we continue to discuss with airlines and our negotiations always hope to improve the unit price. However, with the new generation system being launched, I do not think that we would be able to reverse that trajectory. I think that we will maintain on the old trend, which we are seeing, which is with as the number of passengers going up and the unit price will continue to come down. 关于第二个问题，就是航旅纵横改制资产化的问题。目前还是在方案制定和协商的过程中，进展确实时间也比较长了，但是公司还在抓紧推进。那么它主要的难点呢，或者说症结点还是在未来，在股东或者是潜在的股东之间，大家就航旅纵横的一个是资产化的方案，一个是未来它的商业化，它的发展方向。在资产化之前，大家有一个协商的过程，所以它时间相对拖得比较长，但目前公司管理层正在全力地推进。 The second one regarding the securitization of the Umetrip and the changes of the system, it is still under negotiation. The process has been a lengthy one and the management continue to push forward. The main issues are still relating to the specific proposals among the shareholders or the potential shareholders. We know that it has been quite a long time, and the management is working hard on pushing this forward. 谢谢。 Thank you. [Foreign language] Our next question comes from James, JPMorgan in Singapore, thank you. 各位领导好，想请教一下，因为看到民航局新的航季的一些航班数量的数字，总体来说是差不多3点多个百分点的一个year on year的同比增长。请问一下这个业务量的增加速度比前几年或前几个季度都来得慢，那请问一下这个对TravelSky的一些收入的影响会有怎么样的一个体现？然后在其他的业务部分是会有怎么样的方法可以弥补吗？可以在这个方面多讲解一下，谢谢。 Thank you. I have a question. Looking at the current figures from the Civil Aviation Administration of China, we can see that the year-on-year growth is 3%. In terms of the growth of the actual volume of business compared to a few years ago or a few quarters ago, it is slowing down. I wonder what kind of impact this has on your revenue. In addition, do you have other business segments which can make up for the slowdown of growth for your business volume? 关于这个，你刚才说得很对，就是TravelSky是比较基于旅客量增长，对旅客量的增长之间是有一个非常紧密关联的这样一个公司。那么从我们过去的数据来看，旅客量的增长一直是保持了一个强劲的增长。从近10年、15年来看都超过了10%。去年旅客量的增长，也是从我们的数据来看达到了12.2%。今年你刚才提到说有所下降3%，这个从我们的数据看不出来。我们的数据应该说没有前两个月的这个数据来看，总的旅客量接近10%，但这只是前两个月。那么总体来讲，民航局也做过预测，今年的预测总的旅客量的增长还会保持在11.4%。 To answer your question, yes, you are right. TravelSky is a company where our business is closely related to the growing number of passengers, and we have seen it growing at a very strong momentum for the past 10 or 15 years, maintaining at an average level of 10%, and last year the growth was 12.2%. You said in your question that there was a decrease of 3%. However, I do not see that from my data, and actually for the first month of this year, the growth again is close to 10% and it is predicted that it will maintain at this growth for this year. 另外，从总的旅客量增长来看，总体上来讲，国内的旅客量增长要高于国内航空公司的国际段的增长，也高于外国航空公司进出中国大陆航班的旅客量的增长。所以说从今年的前两个月的数字来看，依然还是这样一个趋势，就是说很有可能国内的增速还是保持一个快速的，而国际进出港、进出境的旅客比国内的增速略低一些。 In terms of the overall speaking of the number of passengers, if we look at the growth of domestic passengers, the growth is still higher than the passengers who travel abroad. This is true for both domestic airlines as well as international airlines. Therefore, to sum up the growth of domestic passengers number, it is still higher and faster than the growth of people traveling abroad. 对不起，可以再追问一下。其实我刚才说的是夏秋季的航班量的增速似乎只有3点多个百分点，比前几年或者前几个季度都来得慢。所以我的意思是这样子一个比较慢的增速可能是机场的一个限制的问题，所以在这方面才会想知道对收入的影响是还有其他业务可以弥补这一块，还是您的意思是旅客量的增速还是会维持在10%，即使航班量是在比较低单位数的一个数字的意思呢？谢谢。 Could I please just further clarify on my question? Actually, what I was mentioning about the 3% I referred to is the actual volume of the total number of the flights, and for last summer and autumn season, it only grew at 3 point something percent. Compared to the year before, it is very slow and perhaps this is due to the airport limitation. What sort of impact does this have on your revenue? Do you have other business to make up for the slowing down of the number of flights generated? Or when you're referring to the 10% and you're talking about the passenger growth at 10%, right? 我们看到的是这样，第一就是说还是刚需，人们出行无论是国际国内，还是刚需，未来还是一个长期增长的一个趋势，尤其在中国进入消费升级的这个阶段，那么旅行，尤其包括未来出境游的一些增长还会是持续的。那么这是第一。 What we can see is that it's a structural demand, whether it is domestic flight or it's international flight, and tourism and overseas outbound tourism would continue to be a growth point going forward. 至于你提到的有一些政策出台之后，对一些机场有一些航班量有所限制，那我们是这样来看的：即使是航班量，个别机场或者一些机场有所减少，但是不会对旅客量的增长有特别大的影响。因为从航班的客座率，包括它的准点率几个方面应该说都还有进一步上升的这种空间。而我们的商业模式不是跟航班量挂钩的，而是跟旅客量紧密挂钩的。所以我们不认为政策的调整对这种刚需，对旅客量会有特别大的冲击。谢谢。 In addition, what you mentioned about the policies for the number of flights and being limited and would that actually affect our business? Actually, those policies do not affect the number of passengers and this is related to the airlines of whether they would be able to leave on time, etc. However, our business is not correlated with the number of flights. Our business is directly correlated with the number of passengers. In that sense, I don't think that this has an impact on our business. 好的，谢谢。 Thank you. 谢谢。我们下一个提问是来自 Morgan Stanley 的 Edward. Our next question comes from Edward Xu, Morgan Stanley. Thank you. 谢谢。各位管理层你们好。前面可能几个问题都已经问到了，我这里就了解一下。第一就是说我们看到派息率，这个payout ratio还是差不多在33%左右，贵公司现金非常稳定，这个派息率未来有没有提高的可能？具体是一个什么指引？第二个问题主要想了解一下，现在民航局今年出了一个文，说要混改，航空公司他们都可以让外资进入，持有更多的股份。那么同样作为民航业里边的中航信来讲，在混改方面、股权这种方面有些什么动作？谢谢。 Thank you. I have two questions. The first one is about the dividend payout ratio, and we can see that it is 33%. We know that your company has always been a cash flow steady company. Is there any possibility of raising the dividend payout ratio going forward? Second, we have seen encouragement of the reforms of mixed ownership by the China Aviation Bureau, and they are encouraging foreign capital to get involved. For your company and going forward, would you have any sort of vision in this area or any plans for this mixed ownership reform? Thank you. 我先来回答您的第一个问题，关于派息率计算的问题。您刚才提到的33%，有可能是您按照我们合并报表的数字计算的。实际上在计算的时候，应该按照我们本部，也就是母公司的单体报表来进行计算。公司的派息政策从上市以来一直保持一个统一的政策，40%这个政策是一直没有改变过的。从公司本身来讲，也希望能够给股东带来持续稳定的回报。目前暂时没有改变的计划。谢谢。 I will take your first question, which is about the dividend payout ratio. The 33% that you mentioned probably comes from our consolidated balance sheet. What you should be looking at is the parent company's balance sheet. Since listing of our company, our payout ratio policy has always been the same, which is to stay at 40%. Going forward, we always strive to give our shareholders a steady return of their investment. We will not change this policy, and we will maintain at the current rate. At the moment, we do not have any plan to change the dividend payout ratio. 关于第二个混改的问题，因为我们目前在这个方面主要是在我们的二级公司、三级公司着手进行一些混改方案的制定。比如说我们目前在进行的航旅纵横的智能化过程，就属于二级公司的混改项目。关于母公司的混改，因为这个主要还是取决于国资委。目前我们没有从国资委得到任何这些方面的进一步的一些消息。 Second question regarding the mixed ownership reforms. What we are doing is for the secondary and tertiary companies, we have plans and for example, Umetrip, which we talked about earlier. Regarding the mixed ownership reforms for the parent company, that would wait for news from SASAC, and at the moment we have not received any news from them yet. 好的，谢谢。 Okay, thank you. 谢谢。我们下一个提问是来自CICC的赵心月，请开始，谢谢。各位领导好。我大概有三个问题，第一个问题是关于系统集成业务的。我想问一下公司这块业务的收入和成本的确认原则大概是怎样的？是否大多数的时间成本的确认都会先于收入的确认？以及我想问一下，因为北京新机场也在积极地建设中，那我们是否在这样一个大的工程里是否有中标？如果中标的话，是不是会分在几年圈在我们的收入里面？这是第一个问题。 Good afternoon, dear management team. I have three questions, and my first question is on the system integration business. The question is about the recognition principle for your revenue and cost, and if the cost recognition does that happen prior to the revenue recognition? Second, for the Beijing new airport, it is being built well underway. Do you have any plans to grab a piece of pie of this area of business? Thank you. 我先回答您的第一个问题，就是关于系统集成业务，我们是如何核算的这个问题。实际上还是根据会计准则相关的规定，我们是按照完工百分比来进行收入成本的确认。那么涉及到您提到的首都机场的这个，因为它和我们现在所有的机场的集成项目都有一些不同，因为它是采用BOT的建设模式，所以在首都机场这个项目上，可能我们未来肯定是先要发生成本，然后才会有收入。这是这个项目和我们目前所有其他机场集成项目不同的地方。 To answer your question, first of all, on the system integration business and in terms of the auditing, actually the recognition of revenue and the cost is accounting is based on the percentage of the completion of the project, and this is based on the accounting rules. Regarding with the Beijing new airport building, this is a different business model. It is operated on a BOT model. Differing from our other business models, with this obviously we will have cost first and then we will have revenue later on. 你好，我还想追问一下，目前有没有一个大概的我们中标的收入的一个指引，以及我还想知道，如果先发生成本的话，可能会是确认在哪几年？不知道有没有这方面的指引。 Second question, I would also like to have a follow-up question, which is on the bidding. If you succeed in the bidding, do you have any sort of guidance on this success of the bidding? Second, for the cost, if the cost occurs first, do you have a rough idea of during which years would the cost appear in? 这个取决于我们合同签署的建设期和运营期的划分。那么得按照合同确定的划分的时间才能够确认您说的这个问题。实际就是说，这个项目本身来讲，我们还是比较看好的，因为毕竟首都机场也是我们国内最大的一个机场，能够参与到首都机场的建设，应该是说对公司来讲是一个有利的一个项目。然后也能给公司未来在机场建设方面能够提供一个比较好的创新模式。对公司以后这方面的业务开展，我觉得BOT的第一个项目的开展，应该说对公司是一个利好。 For this question, actually, regarding the cost and if it occurs first and when would that be appearing in our balance sheet in the next few years, I think that again, depends on what is written in the contract and in terms of what is the construction phase and what is the operation phase and how you actually divide these phases. For the project itself, we are very confident and very positive on this project. The Capital Airport is very important and the largest airport in China. To be able to participate in such a project, we believe that this will bring us with a lot of benefits and to help us to go forward in the airport construction business and the BOT model, and we believe that this will bring great benefits to the company. 感谢刘总的解答，我们也非常期待这个新机场以及新机场给我们带来的收入上的增加。那我还有两个非常小的问题，我会一起问掉。一个是就是刚才于总也预期了未来我们内航内线的增速可能是快过内航外线，以及包括外航的增长。那就我的理解，是不是就单从这个增速上的差异就会结构性地降低我们的ASP？我的问题也就是说会不会未来我们实际看到的ASP的下降，那个下降的程度其实会是多于它实际的下降，就实际降幅可能没有我们看到的这么多。这是第二个问题。然后第三个问题就是想问一下新系统研发的进度应该已经，我记得上一次是能到80%了。那想问一下目前来看，这一块未来跟航空公司洽谈得如何，以及是否会有相关的合同的签订？谢谢。 I have another 2 small questions, and I will ask them all together. The first one is that, just now Mr. Yu mentioned he thinks that the domestic lines, domestic flights of domestic airlines growth will be faster than the international routes of both domestic airlines and foreign airlines. Maybe does that mean structurally speaking, going forward, the ASP will be coming down? Would it mean that the actual decrease of the ASP will be bigger than the actual decrease of the unit price? Second, for the new system, R&D, we have heard that it has already completed 80%, and are you in any sort of negotiation with different companies? How is the progress in this regard? 关于第一个问题，就是如果说国内航空公司国际航段的增速慢于国内旅客量的增速，那当然可能因为我们国际航段的定价略高一点，这个可能对ASP的增长会略微差一点。就是ASP的影响。如果国际段增长得快的，当然对我们是利好的。那么关于外航，主要还是受到美元汇率的波动的影响，随着美元汇率对人民币的汇率的波动，来上下浮动。这是关于第二个问题。 For your first question regarding the international routes of the domestic airlines, generally speaking, they are priced at a higher price compared to the domestic routes. Of course, if this part of the business grows faster, then it is a benefit to us. If it is growing slower, then it would be a negative impact for us and for the foreign airlines. That is mainly dominated and affected by the USD to RMB exchange rate. 关于第三个问题，就是说新一代系统投产之后价格的问题。这个永远都是我们一个追求的目标。我们希望新一代系统逐渐投产之后，在产品服务有所提升之后，对航空公司的收费也有所变化。但从目前来看，刚才我也提到，短期以及能不能看得见，目前没有价格提升的趋势。 Certainly, for the pricing of the new system, as you mentioned, of course, price is always something that we pursue. With the upgrading of the product and service that we provide to the airlines, obviously we hope that the fees would also change accordingly. However, looking at the short term and foreseeable future, we do not believe so. 但是我们还会努力与航空公司继续就价格问题进行协商。但恐怕这个协商和谈判应该是长期的。谢谢。 We will try our best to continue to negotiate with the airline companies in terms of the pricing. However, we believe that this process will be a lengthy one. 好的，非常感谢于总和刘总的详细解答。谢谢。 Thank you very much, Mr. Yu and Ms. Liu, for your detailed explanation. 好的，非常感谢大家。我们看到时间其实已经到了，但今天因为上线人数太多，有一些朋友们排队很久才上来，那管理层也给大家延长一下时间。请最后一位投资者来提问。感谢。谢谢。我们最后一个提问是来自兴业的安毅夫，请开始。谢谢。好，谢谢。谢谢管理层。那我这边可能有三个比较小的问题。第一个还是关于我们的集成服务收入。因为今年我们看到收入下降，想问一下，我们公司内部数据来看，可能是新的订单比较少，还是其实我们拿了很多订单，但只是完成进度确认得比较慢。这第一个问题。那第二个问题是我看到我们公司其实今年的话递延收益会比较多。我想问一下这个递延收益增加这么多，主要是哪部分业务导致了这个递延收益的增加？然后第三个小问题，其实还是一些会计的细节，就是说因为我们说2017年其实新的折旧还没有算进来，但我看到其实2017年的折旧已经是有3.4个亿，就是想了解一下这个折旧主要是哪方面具体的。谢谢。 I have three small questions. Thank you. The first one is again on the system integration income, the revenue. We have seen that the revenue has come down. Is this because the new orders are becoming fewer? Or we know that you have a lot of orders, or is it because the actual completion of these orders, the rate is very slow? My second question is on the deferred income. We have seen the deferred income is quite large for this year, and which parts does that really occur in? Third question is an accounting question. For 2017, the depreciation has not been accounted yet. We have seen that the depreciation is CNY 340 million. Where would you put this provision in your balance sheet? 先回答您的第一个问题，关于集成服务收入确认的问题。刚才已经提到过，我们是按照完工百分比来确认的。那么从本身项目拿到的订单情况来讲，我们情况还是比较好的。相关的业务部门也一直在市场上跟踪所有国内机场的项目招标的情况。那么整个市场应该是说，从订单上来讲，我们量是增长的，只不过就是由于完工百分比，施工工期它开展的情况，跟进度确认的情况相关。第二个问题，您提到的是关于递延收益的问题，这一块主要还是由于一些我们做的集成项目，它没有满足我们收入确认的条件，所以导致了一部分递延收益反映出来。再有就可能是我们申请了一些政府部门的项目，它也是一个跨期的、时间比较长的一些项目，可能在这个里头也有所体现。第三个，您说到的关于折旧的问题，实际上还是和公司目前所拥有的资产的状况是相关的。一个是就是我们拥有了这些物业的，包括刚才提到的，我们新的数据中心的这些物业慢慢进来，增加了一些折旧，当然也会有一些资产。 To answer your questions, first of all, on the integrated system service, as I mentioned earlier, this will be related to the percentage of the completion of the project. At the moment our orders are doing very well. For different business departments, they are following very closely with the different bidding projects of airports. So the order volume is going up. Again, as I said, this is related to the actual timing of when the project gets kicked start and this is related to the recognition of the revenue. Second on the deferred income. This perhaps is because of two reasons. One is that some of the integrated projects, they have not matched the requirements that we need for recognizing revenue. Second is that we have also taken on some government projects. These projects are usually long-term projects which has also caused deferred income. A third question in terms of depreciation, this is related to our asset situation. For example, as I mentioned, we have the new data center and some other new real estate projects which is causing the depreciation for 2017. Thank you. 好的，谢谢。是这样，我们看到跟进公司多年的Daiwa的Kevin Lao先生也已经排队进来了。那管理层说我们再回答一下您的问题。好，感谢，就结束了。好的。我们这一个提问是来自Daiwa的Kevin。Kevin请开始，谢谢。感谢管理层提供这个机会。那我就补充一下，问一下关于成本那边，就佣金及推广那边上半年是减少不少，因为记得之前你们曾经去年有过一些可能合同的改变，去年也有一些合同的改变，还有一些持续性的改变，会导致佣金及推广这个收入，这个成本上涨。另外第二个问题就是其他营业成本，上半年从大概28%左右吧，上半年反而掉得比较多，所以我想问一下管理层有没有一些特殊的原因？谢谢。 Thank you. We have seen Kevin Lao, who has followed the company for a very long time. He has just logged online, so the management decided to give him the last question to end this Q&A session. Kevin, please go ahead. Kevin says that I have two questions. The first one is related to the cost. We have seen the commission and the promotion has come down. We know that the year before last year there has been a one-off change made to the contract. Is it because of the same reason that happened last year that we are witnessing this decrease of the commission rate? The second one is on your second half of last year and the operation cost has actually gone up by 28%. This is according to my calculation. Could you please further elaborate on the reasons? 刚才您提到的第一个问题是有关佣金和推广费用这一块。实际上公司一直在成本控制方面还是比较严格的，也是希望能够给我们的股东带来更多的回报。那么在这块，应该也是公司和客户基本上做了很多的洽商的工作，然后尽可能把这一块的费用能够往下降就往下降。所以这一块应该是我们相关的业务部门、市场部门他们工作的成果的体现。您提到的第二个问题是其他营业成本这一块，实际上还是和公司对非生产性的费用管控相对比较严格有关系。那么这一块也是按照政府部门的相关的要求，我们也对公司的行政性的开支进行了压缩和控制。那么对于整体的这一块，其他的营业成本的控制应该是说在去年体现出来了。大概情况就是这样。 To answer your question, the first one for the decrease of the commission and promotion rate. The company has very tight control on our cost. We are very strict about it because we hope to give more return to our investors. We have done a lot of work and negotiation with our customers to try our best to bring down the cost. This truly reflects the efforts put in by our colleagues from the business department and the marketing department. For the second question, for last year, again, you can see this is on our non-production type of cost. As an SOE, we are working our hardest to reduce our costs, such as administrative cost, etc. This is where you can see that it is well reflected as well. Thank you. 好的，谢谢鲍女士。 Thank you very much management team. 好，谢谢各位。今天我们会议就开到这儿。感谢各位的参加。如果未来大家有些什么问题，还可以跟我们投资的关系部宋经理，还有王希等等，跟我们取得联系。谢谢。 Thank you again for everyone for participating in today's Q&A session. Going forward, if you have any other questions, you are more than welcome to get in touch with our IR department. Thank you. 好的，也非常感谢大家。给大家做一个小的提示，我们在四五月份都会在国内、国外有一些会议或者是路演的安排，大家可以先去会上报名。那如果要到公司来约会的话，请大家在电子邮件上尽量写上"中航信约会"这几个字样。因为现在的安全级别都越来越高，服务器可能会屏蔽一些大家的需求。另外也非常抱歉，可能我们在发送电话会议号码的时候，有一些也的确是被贵公司的邮件系统屏蔽掉了，我们尝试过多次也没有发送成功。那以后如果遇到这些情况，可以提早来打电话，打5765 0696这个电话。在会议之前再来，恐怕我们线路会满，也不一定能进来。好，再次感谢大家。 I also have a gentle reminder. Actually, we have a lot of meetings in April and May and some road shows. We welcome you to sign up for those meetings. If you would like to book a meeting with our company via email, please make sure that you write down the title as TravelSky appointment booking because our safety alert is becoming very high. Again, I would like to further apologize for sometimes some of the telephone calls that we try to send you is blocked by your email system. Going forward, you could dial directly on the following number 5765 0696. Again, we look forward to communicating with you in the future. Thank you.