by Xue Bingbing

Air China Cargo (001391.SZ) debuted on the Shenzhen Stock Exchange on December 30, marking a significant milestone as the "second aviation logistics company to complete mixed-ownership reform" and the largest IPO on the Shenzhen Stock Exchange in 2024. Its shares soared to almost five times its issue price of 2.3 yuan per share, reaching a market value of 136 billion yuan.

Since 2017, Air China Cargo has implemented significant reforms, including integration with freight companies and partnerships with strategic investors like Cainiao Supply Chain and Shenzhen International Holdings. The IPO marks the completion of its mixed-ownership reform, with 3.5 billion yuan raised to enhance logistics capabilities, including the purchase of five Boeing B777-200F cargo planes.

s, including the purchase of five Boeing B777-200F cargo planes.

Air China Cargo’s business model focuses on air cargo services, terminal operations, and logistics solutions. With 21 freighters and a route network spanning six continents, the company aims to strengthen its position as a global aviation logistics leader. Major customers include Cainiao Supply Chain, which accounted for up to 11.86 percent of revenue in 2024.

Despite challenges like lower cargo volume and aircraft utilization compared to competitors, the company benefits from its new Chengdu Tianfu Airport terminal, operational since 2023, which is expected to boost profitability. Revenue rebounded in 2024 due to cross-border e-commerce demand, with projections of 20.201 billion yuan in revenue and 1.796 billion yuan in net profit, up 35.40 percent and 55.70 percent year-on-year, respectively.

While trailing China Eastern Airlines Logistics in market share and efficiency, Air China Cargo is leveraging strategic hubs and expanding its global network to close the gap and enhance competitiveness.