s a result, our e-commerce revenue grew by 26% from
the previous year, and the proportion of direct sales revenue continued to rise and reached 23%. We actively
adjusted the management strategy of our agents, flattened the sales channel structure, and increased the
loyalty of our agents. We also enhanced our co-operation with business travel service providers and continued
to extend our overseas sales channels. By introducing a number of new products in our long-haul flights, such
as seat selection fee, upgrade coupon, prepaid luggage fee and upgrade at boarding gate, we established a
range of products generating ancillary revenue, which achieved positive results in collecting ancillary revenue.
Taking advantage of a number of key events such as in-flight Internet connections, the 20th anniversary of
PhoenixMiles, the introduction of our first Boeing 747-8 aircraft and the 50th anniversary of the establishment
of diplomatic relationship between China and France, we launched a series of marketing campaigns to
increase our brand value.