5.

FINANCIAL PERFORMANCE
A. Balance Sheet

Cathay Pacific Airways Balance Sheet Annual As

Originally Reported 2019 2020 2021
Total Assets 214,516.00 204,574.00 196,627.00
Total Current Assets 27,284.00 27,567.00 28,897.00
Cash, Cash Equivalents and Short-Term Investments 14,864.00 19,341.00 19,284.00
Cash and Cash Equivalents 8,881.00 6,166.00 8,573.00
Short Term Investments 5,983.00 13,175.00 10,711.00
Derivative Investment and Hedging Assets, Current 431.00 90.00 1,759.00
Inventories 1,812.00 1,719.00 1,269.00
Trade and Other Receivables, Current 10,177.00 6,379.00 6,537.00
Assets Held for Sale/Discontinued Operations, Current 38.00 48.00
Total Non-Current Assets 187,232.00 177,007.00 167,730.00
Net Property, Plant and Equipment 140,114.00 131,925.00 123,990.00
Gross Property, Plant and Equipment 222,344.00 227,948.00 228,713.00
Properties 22,899.00 23,523.00 22,654.00
Construction in Progress and Advance Payments 20.00 20.00 20.00
Leased Property, Plant and Equipment 217.00 312.00 315.00
Other Property, Plant and Equipment 5,616.00 5,474.00 5,359.00
Accumulated Depreciation and Impairment -82,230.00 -96,023.00 -104,723.00
Net Intangible Assets 15,151.00 15,061.00 15,027.00
Gross Goodwill and Other Intangible Assets 19,069.00 19,591.00 20,118.00
Accumulated Amortization and Impairment -3,918.00 -4,530.00 -5,091.00
Total Long-Term Investments 27,941.00 27,304.00 25,288.00
Derivative Investment and Hedging Assets, Non-
Current 1,579.00 243.00 243.00
Trade and Other Receivables, Non-Current 888.00 852.00 906.00
Total Liabilities 151,740.00 131,313.00 124,378.00
Total Current Liabilities 56,862.00 46,724.00 43,135.00
Payables and Accrued Expenses, Current 19,646.00 13,042.00 12,674.00
Financial Liabilities, Current 21,275.00 25,560.00 22,536.00
Deferred Liabilities, Current 15,941.00 8,122.00 7,925.00
Total Non-Current Liabilities 94,878.00 84,589.00 81,243.00
Financial Liabilities, Non-Current 76,902.00 69,379.00 67,688.00
Long Term Debt and Capital Lease Obligation 76,508.00 68,880.00 67,504.00
Derivative and Hedging Liabilities, Non-Current 394.00 499.00 184.00
Tax Liabilities, Non-Current 13,564.00 11,499.00 9,820.00
Deferred Liabilities, Non-Current 4,412.00 3,711.00 3,735.00
Provisions, Non-Current
Total Equity 62,776.00 73,261.00 72,249.00
Equity Attributable to Parent Stockholders 62,773.00 73,257.00 72,244.00
Paid in Capital 17,106.00 48,322.00 48,322.00
Capital Stock 17,106.00 48,322.00 48,322.00
Common Stock 17,106.00 48,322.00 48,322.00
Reserves/Accumulated Comprehensive Income/Losses 45,667.00 24,935.00 23,922.00
Other Reserves/Accum.Comp.Inc 45,667.00 24,935.00 23,922.00
Non-Controlling/Minority Interests in Equity 3.00 4.00 5.00
  COMMON-SIZE BALANCE SHEET
Cathay Pacific Airways Balance Sheet Annual As
Originally Reported 2019 2020 2021
Total Assets 100% 100% 100%
Total Current Assets 12.72% 13.48% 14.70%
Cash, Cash Equivalents and Short Term Investments 6.93% 9.45% 9.81%
Cash and Cash Equivalents 4.14% 3.01% 4.36%
Short Term Investments 2.79% 6.44% 5.45%
Derivative Investment and Hedging Assets, Current 0.20% 0.04% 0.89%
Inventories 0.84% 0.84% 0.65%
Trade and Other Receivables, Current 4.74% 3.12% 3.32%
Assets Held for Sale/Discontinued Operations, Current 0.00% 0.02% 0.02%
Total Non-Current Assets 87.28% 86.52% 85.30%
Net Property, Plant and Equipment 65.32% 64.49% 63.06%
Gross Property, Plant and Equipment 103.65% 111.43% 116.32%
Properties 10.67% 11.50% 11.52%
Construction in Progress and Advance Payments 0.01% 0.01% 0.01%
Leased Property, Plant and Equipment 0.10% 0.15% 0.16%
Other Property, Plant and Equipment 2.62% 2.68% 2.73%
Accumulated Depreciation and Impairment -38.33% -46.94% -53.26%
Net Intangible Assets 7.06% 7.36% 7.64%
Gross Goodwill and Other Intangible Assets 8.89% 9.58% 10.23%
Accumulated Amortization and Impairment -1.83% -2.21% -2.59%
Total Long Term Investments 13.03% 13.35% 12.86%
Derivative Investment and Hedging Assets, Non-
Current 0.74% 0.12% 0.12%
Trade and Other Receivables, Non-Current 0.41% 0.42% 0.46%
Total Liabilities 100% 100% 100%
Total Current Liabilities 37.47% 35.58% 34.68%
Payables and Accrued Expenses, Current 12.95% 9.93% 10.19%
Financial Liabilities, Current 14.02% 19.46% 18.12%
Deferred Liabilities, Current 10.51% 6.19% 6.37%
Total Non-Current Liabilities 62.53% 64.42% 65.32%
Financial Liabilities, Non-Current 50.68% 52.83% 54.42%
Long Term Debt and Capital Lease Obligation 50.42% 52.45% 54.27%
Derivative and Hedging Liabilities, Non-Current 0.26% 0.38% 0.15%
Tax Liabilities, Non-Current 8.94% 8.76% 7.90%
Deferred Liabilities, Non-Current 2.91% 2.83% 3.00%
Provisions, Non-Current
Total Equity 100% 100% 100%
Equity Attributable to Parent Stockholders 100.00% 99.99% 99.99%
Paid in Capital 27.25% 65.96% 66.88%
Capital Stock 27.25% 65.96% 66.88%
Common Stock 27.25% 65.96% 66.88%
Reserves/Accumulated Comprehensive Income/Losses 72.75% 34.04% 33.11%
Other Reserves/Accum.Comp.Inc 72.75% 34.04% 33.11%
Non-Controlling/Minority Interests in Equity 72.75% 34.04% 33.11%

B. Income Statement
 Cathay Pacific Airways Income Statement Annual
As Originally Reported 2019 2020 2021
Gross Profit 9,101.00 -8,572.00 3,172.00
Total Revenue 106,973.00 46,934.00 45,587.00
Business Revenue 106,973.00 46,934.00 45,587.00
Cost of Revenue -97,872.00 -55,506.00 -42,415.00
Cost of Goods and Services -5,306.00 -1,102.00 -366.00
Rent and Landing Fees, Cost of Revenue -17,758.00 -6,868.00 -5,743.00
Purchased Fuel, Power and Gas -29,812.00 -11,379.00 -7,031.00
Operation Maintenance and Repairs -9,858.00 -5,772.00 -5,152.00
Staff Cost, Cost of Revenue -20,125.00 -15,786.00 -11,298.00
Depreciation & Amortization, Cost of Revenue -15,013.00 -14,599.00 -12,825.00
Operating Income/Expenses -5,774.00 -3,133.00 -3,622.00
Selling, General and Administrative Expenses -927.00 -146.00
Selling and Marketing Expenses -927.00 -146.00
Other Income/Expenses, Operating -4,847.00 -2,987.00 -3,622.00
Other Expenses, Operating -4,847.00 -2,987.00 -3,622.00
Total Operating Profit/Loss 3,327.00 -11,705.00 -450.00
Non-Operating Income/Expense, Total -1,182.00 -10,616.00 -5,607.00
Total Net Finance Income/Expenses -2,940.00 -2,550.00 -2,411.00
Net Interest Income/Expense -2,940.00 -2,550.00 -2,411.00
Interest Expense Net of Capitalized Interest -3,277.00 -2,699.00 -2,486.00
Interest Income 337.00 149.00 75.00
Net Investment Income 1,644.00 -1,700.00 -2,203.00
Income from Associates, JointVentures and Other
Participating Interests 1,643.00 -1,282.00 -1,985.00
Irregular Income/Expenses 114.00 -6,439.00 -993.00
Other Income/Expenses, Non-Operating 73.00 .

* COMMON-SIZE INCOME STATEMENT

Cathay Pacific Airways Income Statement Annual

As Originally Reported 2019 2020 2021
Gross Profit 8.51% -18.26% 6.96%
Total Revenue 100% 100% 100%
Business Revenue 100.00% 100.00% 100.00%
Cost of Revenue -91.49% -118.26% -93.04%
Cost of Goods and Services -4.96% -2.35% -0.80%
Rent and Landing Fees, Cost of Revenue -16.60% -14.63% -12.60%
Purchased Fuel, Power and Gas -27.87% -24.24% -15.42%
Operation Maintenance and Repairs -9.22% -12.30% -11.30%
Staff Cost, Cost of Revenue -18.81% -33.63% -24.78%
Depreciation & Amortization, Cost of Revenue -14.03% -31.11% -28.13%
Operating Income/Expenses -5.40% -6.68% -7.95%
Selling, General and Administrative Expenses -0.87% -0.31% 0.00%
Selling and Marketing Expenses -0.87% -0.31% 0.00%
Other Income/Expenses, Operating -4.53% -6.36% -7.95%
Other Expenses, Operating -4.53% -6.36% -7.95%
Total Operating Profit/Loss 100% 100% 100%
Non-Operating Income/Expense, Total -35.53% 90.70% 1,246%
 Total Net Finance Income/Expenses -88.37% 21.79% 535.78%
Net Interest Income/Expense -88.37% 21.79% 535.78%
Interest Expense Net of Capitalized Interest -98.50% 23.06% 552.44%
Interest Income 10.13% -1.27% -16.67%
Net Investment Income 49.41% 14.52% 489.56%
Income from Associates, JointVentures and Other
Participating Interests 49.38% 10.95% 441.11%
Irregular Income/Expenses 3.43% 55.01% 220.67%
Other Income/Expenses, Non-Operating -0.62%

C. Cash Flow

Cathay Pacific Airways Cash Flow Annual As

Originally Reported 2019 2020 2021
Cash Flow from Operating Activities, Indirect 15,342.00 -14,291.00 8,835.00
Net Cash Flow from Continuing Operating Activities,
Indirect 15,342.00 -14,291.00 8,835.00
Cash Generated from Operating Activities 18,458.00 -11,237.00 11,705.00
Income/Loss before Non-Cash Adjustment 3,441.00 -18,144.00 -1,443.00
Total Adjustments for Non-Cash Items 13,069.00 18,177.00 13,307.00
Depreciation, Amortization and Depletion, Non-
Cash Adjustment 14,222.00 14,421.00 12,786.00
Irregular Income/Loss, Non-Cash Adjustment -280.00 3,718.00 563.00
Other Irregular Income/Loss, Non-Cash
Adjustment -316.00 -301.00
Other Provisions, Non-Cash Adjustment -785.00
Changes in Operating Capital 1,948.00 -11,270.00 -159.00
Change in Inventories 16.00 93.00 340.00
Change in Trade and Other Receivables 2,127.00 3,751.00 -159.00
Change in Payables and Accrued Expenses 294.00 -7,284.00 -1,608.00
Change in Deferred Assets/Liabilities 149.00 -7,819.00 281.00
Change in Other Operating Capital -638.00 -11.00 987.00
Taxes Refund/Paid, Indirect -285.00 -923.00 -991.00
Cash Flow from Investing Activities -11,604.00 -11,758.00 493.00
Cash Flow from Continuing Investing Activities -11,604.00 -11,758.00 493.00
Purchase/Sale and Disposal of Property, Plant and
Equipment, Net -12,037.00 -5,265.00 -2,164.00
Purchase of Property, Plant and Equipment -12,171.00 -5,418.00 -2,276.00
Sale and Disposal of Property, Plant and Equipment 134.00 153.00 112.00
Purchase/Sale of Investments, Net 1,736.00 -7,150.00 2,464.00
Purchase/Sale of Other Non-Current Assets, Net . -2.00 -17.00
Dividends Received/Paid, CFI 394.00 675.00 .
Purchase/Sale of Business, Net -1,697.00 .
Purchase/Acquisition of Business -1,697.00 .
Cash Flow from Financing Activities -2,469.00 23,309.00 -6,932.00
Cash Flow from Continuing Financing Activities -2,469.00 23,309.00 -6,932.00
Issuance of/Payments for Preferred Stock, Net 19,500.00 .
Proceeds from Issuance of Preferred Stock 19,500.00 .
Issuance of/Repayments for Debt, Net -1,810.00 -7,830.00 -6,932.00
Issuance of/Repayments for Long Term Debt, Net -1,810.00 -7,830.00 -6,932.00
Proceeds from Issuance of Long Term Debt 16,975.00 22,304.00 13,906.00
 Repayments for Long Term Debt -18,785.00 -30,134.00 -20,838.00
Issue and Financing Costs -77.00 .
Share Issuance Costs -77.00 .
Cash Dividends and Interest Paid -1,495.00 .
Cash Dividends Paid -1,495.00 .
Cash Dividends Paid to Non-Controlling/Minority
Interests -1.00 .

5. Accrual Ratios

Profitability Ratios 2019 2020 2021

Gross Margin % 0.09% 0.18% 0.07%
Net Margin % 0.05 0.01 0.03
Return on Assets % 0.03% 0.02% 0.02%
Return on Equity % 0.06 0.03 0.03
Efficiency Ratios 2019 2020 2021
Days Sales 107.65 111.97 103.9
Outstanding (DSO)
Days Inventory 110.06 529.95 1,595.63
Receivables Turnover 0.02 0.01 0.02
Inventory Turnover 3.32 0.69 0.23
Fixed Assets 6.44 2.95 0.27
Turnover
Asset Turnover 0.91 1.18 0.93
Liquidity Ratios 2019 2020 2021
Current Ratio 0.48 0.59 0.67
Quick Ratio 0.45 0.55 0.64
Leverage Ratios 2019 2020 2021
Debt/Equity 2.42 1.79 1.72
Interest Coverage 2.14 4.35 3.62
Market Value Ratios 2019 2020 2021
Book Value/Share 3.67 1.52 1.50
Price/Earnings 0.17 0.09 0.16

6.
- In terms of financial statements from 2019 to 2021 of Cathay Pacific, in general, there are not much fluctuations
in many aspects:

+ The total value of short-term assets increased gradually from 12.72% to 14.70%, in which there was a sudden
growth in cash fluctuating up to about 3%.

+ However, in terms of long-term assets, there is a downward trend, namely from 87.28% to 85.30%. Overall,
there is not a strong effect on long-term assets.

+ In terms of total short-term debt, there was a decrease from 37.47% to 34.68% thanks to the decrease in
expenses payable.
+ But long-term debt tends to grow from 62.53% to 65.32%, possibly due to the impact of the covid-19 crisis.

+ We can see that the contributed capital and retained earnings over the years have almost not changed, so it
can be inferred that the capital has not changed.

- To conclude, we can see that although the company has certain difficulties, considering the above factors,
buying shares is worth considering.

7.
- For business, the toughest leadership test of the health and economic crisis due to Covid-19 is how to
sustain a business in an environment where economies are still struggling. From my perspective,
Cathay Pacific navigates this crisis and remain sustainable due to delivery. In the first half of 2021,
Cathay Pacific carried only 157,000 passengers, down 96% compared to the same period in 2020 and
brought in revenue of only $96 million for the airline. Instead, the freight segment is a "lifesaver" for
Cathay, generating 75% of its revenue in the first six months of the year. Cathay Pacific recorded a
record-high loss of $2.8 billion in 2020. The airline has cut staff by laying off and retiring many
employees early, and closed pilot facilities in five countries.