The year-on-year increase is about 18 times.

After wearing the "ST cap" for a year, ST Air China will reverse its "cap-wearing" status and return to being known as "China Eastern Airlines" tomorrow.

Originally reported by Chi Qiujie

Due to a record-breaking profit of 13.828 billion yuan in 2008 and assets not covering debts amounting to 11.59 billion yuan, the company had a negative net worth as of December 31, 2008. According to relevant regulations, trading of Air China's stock was subject to special handling starting on April 17, 2009, resulting in the "ST cap."

Abbreviation restored to China Eastern Airlines

However, after government capital injection and internal reforms, Air China achieved profitability in both this year and the first quarter, with a net profit of 770 million yuan in the first quarter report, an increase of approximately 18 times compared to the previous year. The debt-to-asset ratio dropped from over 115% to around 95%, reversing the situation of assets not covering debts. As of December 31, 2009, the company's audited net worth belonging to shareholders also turned positive. Therefore, the reasons for the company's stock being subject to special handling have been eliminated.

According to the Shanghai Stock Exchange Listing Rules, the company's A-share stock will be suspended for one day on May 27, 2010. Starting from May 28, 2010, the abbreviation of the company's A-share stock will change from ST Air China to China Eastern Airlines, and the daily price fluctuation limit for the company's A-share stock will be restored from 5% to 10%.

Last night, ST Air China announced that the company submitted an application to the exchange on April 19, 2010, to revoke the special handling of the company's stock trading. Subsequently, the application was approved by the exchange.

ST Air China is set to "remove the cap" today.