Data released by the National Bureau of Statistics on August 27 shows that as of the end of July, accounts receivable for China's industrial enterprises above designated size reached 28.88 trillion yuan, up 8.5% year-on-year, while operating revenue for the same group totaled 80.92 trillion yuan, up 6.5% year-on-year. The growth rate of accounts receivable for large industrial enterprises outpaced revenue growth.
At the same time, corporate payment collection periods are also lengthening, with private enterprises taking longer than state-owned ones. As of the end of July, the average collection period for accounts receivable of large industrial enterprises was 71.9 days, an increase of 0.9 days year-on-year. As of the end of June, the collection period for private industrial enterprises was 75.6 days, significantly longer than the 55.6 days for state-controlled enterprises.
On September 14, the State Council Information Office held a routine policy briefing dedicated to addressing the difficulties small and medium-sized enterprises face in collecting payments. Guo Ruiming, director of the Listed Company Supervision Department of the China Securities Regulatory Commission, stated at the meeting that regulators will tackle the payment collection problem from both ends: on one hand, urging listed companies to strengthen information disclosure and standardize payment practices; on the other hand, focusing on the operational difficulties of small and medium-sized entities in the industrial chain to promote smooth capital circulation across the entire chain. This policy signal has once again placed the accounts payable and supplier payment terms of listed companies under the capital market spotlight.
As an important transportation pillar of the national economy, the civil aviation industry's payment ecosystem also reflects the capital circulation status of the entire sector. Based on the latest financial reports of seven listed airlines, the industry's accounts payable shows a pattern of "state-owned carriers dominating in scale while private carriers lead in growth rate," with significant divergence in payment term lengths. Among them, China Eastern Airlines Corporation Limited (ASX: 600115) ranks first among the seven listed carriers in both payables scale at 36.7 billion yuan and payables turnover days at 87 days, and the operational and liquidity risks behind its continuously lengthening payment terms deserve attention against the backdrop of strengthened regulatory governance over payment practices.
Industry Payables Show Clear Tiered Structure with Notable Divergence Between State-Owned and Private Carriers
In terms of the absolute scale of accounts payable and notes, listed airlines present a clear tiered structure, with size differences being the key factor determining the level of payables. Among major state-owned carriers, China Eastern Airlines Corporation Limited (ASX: 600115) leads the industry with 36.7 billion yuan, followed by China Southern Airlines and Air China with 26.5 billion yuan and 25.3 billion yuan respectively, forming the first tier; Hainan Airlines Holding ranks fourth with 15.7 billion yuan; the three small and medium-sized carriers Spring Airlines, China Express Airlines, and Juneyao Airlines all have accounts payable of 3 billion yuan or less, with the lowest being Juneyao Airlines at just 1.6 billion yuan, a gap of more than 22 times between the highest and lowest.
Year-on-year growth rates of accounts payable show a pattern of "private carriers growing faster, with internal divergence among state-owned carriers." Spring Airlines and China Express Airlines, both private carriers, recorded the fastest growth rates at 75.9% and 68.3% respectively, indicating a rapid increase in smaller carriers' willingness to hold up payments to upstream suppliers. China Eastern Airlines Corporation Limited (ASX: 600115) posted a growth rate of 33.4%, ranking first among the three major carriers and significantly higher than China Southern Airlines' 22.0% and Air China's 19.2%. Hainan Airlines Holding grew 7.9% year-on-year, while Juneyao Airlines was the only company to record negative growth, with accounts payable declining 7.4% year-on-year, reflecting a relatively prudent payables management strategy.
Compared with scale metrics, accounts payable turnover days more accurately reflect the actual payment terms airlines offer to upstream suppliers. Data shows that turnover days vary widely across the seven carriers. China Eastern Airlines Corporation Limited (ASX: 600115) tops the list with 87 days, followed closely by Hainan Airlines Holding at 83 days and China Express Airlines at 73 days. China Southern Airlines, Air China, and Spring Airlines have turnover days concentrated in the 46-49 day range, while Juneyao Airlines stands at just 24 days, less than one-third of China Eastern's figure, highlighting significant divergence in industry payment terms.
In terms of year-on-year changes in turnover days, more than half of the carriers have seen their payment terms lengthen. China Express Airlines saw its accounts payable turnover days surge 61.0% year-on-year, the largest increase in the industry. Spring Airlines rose 45.3% year-on-year, also at a high level. China Eastern Airlines Corporation Limited (ASX: 600115) increased its turnover days by 19.2% year-on-year, the fastest growth among the three major carriers, with a clear trend of lengthening payment terms. In contrast, Hainan Airlines Holding and Juneyao Airlines saw their turnover days decline year-on-year, with Juneyao Airlines dropping sharply by 28.1%, continuing to optimize its payment cycle to upstream suppliers.
China Eastern Leads in Both Payables Amount and Payment Terms, Increasing Passive Obligations Under High Debt and Loss Pressure
In terms of the growth rate of payment terms, China Eastern Airlines Corporation Limited (ASX: 600115) saw its accounts payable turnover days increase 79.9% year-on-year, the highest among the listed companies. It should be noted that this is closely related to alleviating liquidity pressure amid operational challenges. Latest financial data shows that in the first half of 2026, China Eastern Airlines generated revenue of 74.234 billion yuan, up 11.09% year-on-year, with a net loss attributable to shareholders of 2.179 billion yuan, an expanded loss of 52.27% year-on-year, reflecting a pattern of revenue growth alongside declining profits.
Of particular note, China Eastern's gross margin in the first half was only 0.04%, nearly falling into negative territory and significantly lower than Air China and China Southern Airlines. Affected by factors such as fuel price volatility, ticket price competition in air passenger transport, and insufficient capacity deployment efficiency, the profitability of the core business has been continuously eroded, making it nearly impossible to generate stable profit accumulation through operating activities, with cash flow generation capacity greatly weakened.
The elevated debt-to-asset ratio further amplifies financial pressure. As of the end of June this year, China Eastern's debt-to-asset ratio had reached 87%, also higher than Air China and China Southern Airlines. With minimal core business profitability, high interest-bearing debt brings rigid interest expenses and debt repayment pressure, and the company's own operating cash generation capacity is insufficient to cover debt principal and interest, continuously narrowing its liquidity buffer. Extending accounts payable terms and occupying upstream supplier funds has become an important means for the company to supplement operating cash flow and ease debt repayment pressure.
The marginal weakening of core operating metrics has intensified capital turnover pressure. In the first half of 2026, the pace of civil aviation demand recovery slowed, and China Eastern's declining operating efficiency dragged down operating cash collection, with net operating cash flow of 10.697 billion yuan in the first half, down 15% year-on-year, while generating a net loss of 2.2 billion yuan. Against this backdrop, the company has extended payment cycles to upstream parties such as aviation material suppliers, airport service providers, and fuel suppliers, relying on occupying upstream payments and buying time to maintain daily operating capital turnover, with capital turnover pressure becoming increasingly prominent.
The recent regulatory initiative to address payment collection difficulties for small and medium-sized enterprises and standardize listed companies' payment practices has direct implications for the civil aviation industry, which has a large concentration of small and medium-sized aviation services, materials, and maintenance companies upstream in the industrial chain. During the industry's past high-growth phase, large airlines commonly used their scale advantages to occupy upstream funds and extend payment terms, but against the backdrop of divergent profit recovery across the industry and tightening regulatory policies, China Eastern Airlines Corporation Limited (ASX: 600115) may face greater operational pressure.
Comments