Customer Profile
Headquartered in Shanghai, China Eastern Air Holding Co.Ltd (CEAH) is one of the three major air transportation groups in China and could be traced back as the first squadron established by former Civil Aviation Administration of Shanghai in January, 1957. By the end of 2017, CEAH’s total assets exceeded RMB 276 billion, and has evolved into a major aviation industry group with a state-of-the-art integrated aviation service system, named “one plus nine”（“1+9”）, focusing on core business of passenger transport service, reinforced by a wide range of additional businesses including logistics, finance, real estate, air catering, financial leasing, import and export trade, air media,
Challenges
- China Eastern has a complex ownership structure, the Group’s financial monitoring is not properly in place, and its management of subsidiaries is weak;
- The Group’s financial management and control system cannot effectively monitor its finances or support the implementation of its strategic decisions;
- The Group does not have a unform and standardized finanical accounting system, and has yet to set up a sound internal finanical reporting system; this is not conducive to the establishment of an effective risk prevention system;
- The financial information systems of the Group and its various segments are scattered and independent, and are unable to provide strong support to finance and decision-making efforts.
Solutions
- Conducted systematic diagnosis of China Eastern’s existing finanical management and informatization systems;
- Re-planned its finanical management and informatization frameworks and steps, clarified the objectives and principles of management, and defined the means and methods of management and the rights to use such means and methods;
- Re-planned its finanical management and informatization frameworks and steps, clarified the objectives and principles of management, and defined the means and methods of management and the rights to use such means and methods;
Value
- Finanical management models were designed for different levels and different types of units to meet the requirements of the Group’s overall strategies and finanical strategies, and management means and methods were implemented;
- Sophisticated accounting has been adopted by China Eastern, its accounting standards have been unitied, and an internal management reporting system covering the Group level, segment level, and tertiary company level has been set up from scratch
- China Eastern’s finanical informatization plan has been designed, laying an excellent foundation for future finanical informatization arrangements.