3rd Quarter Results

RNS Number : 7911F

Air China Ld

31 October 2018

 

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

中國國際航空股份有限公司

AIR CHINA LIMITED

(a joint stock limited company incorporated in the People’s Republic of China with limited liability)

(Stock Code: 00753)

THIRD QUARTERLY REPORT 2018

This announcement is made pursuant to Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) and Rule 13.09 and Rule 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

The board of directors (the "Board") of Air China Limited (the "Company") held a meeting of the Board on 30 October 2018 and passed the resolution approving the third quarterly report 2018 of the Company for the nine months ended 30 September 2018 (the "Reporting Period" or "Period") prepared in accordance with the PRC Accounting Standards.

1.       IMPORTANT NOTICE

1.1     The Board and the supervisory committee of the Company together with the directors, supervisors and the senior management of the Company guarantee that the contents of the quarterly report are true, accurate and complete and do not contain any false representation, misleading statement or material omission, and shall jointly and severally accept legal liability.

1.2     Particulars of absent directors

Name of absent director	Position of absent director	Reason(s) for absence	Name of proxy
John Robert Slosar	Director	Business engagement	Cai Jianjiang

 

1.3     Mr. Cai Jianjiang (legal representative and the Chairman of the Board of the Company), Mr. Xiao Feng (person in charge of accounting function and the Chief Accountant), and Mr. Zhan Zhong (person in charge of accounting department (accounting superintendent) and the general manager of finance department) hereby guarantee that the financial statements set out in this quarterly report are true, accurate and complete.

1.4     The third quarterly report of the Company is unaudited.

2.       BASIC INFORMATION OF THE COMPANY

2.1     Major financial data

Unit: RMB'000

	At the end of the Reporting Period	At the end of the previous year	Increase/decrease at the end of the Reporting Period as compared to the end of the previous year
			(%)
Total assets	252,579,331	235,717,816	7.15
Net asset attributable to shareholders of the listed company	93,932,818	86,120,794	9.07
	For the period from the beginning of the year to the end of the Reporting Period (January to September)	For the corresponding period of the previous year (January to September)	Increase/decrease as compared to the corresponding period of the previous year
			(%)
Net cash flows from operating activities	24,614,813	18,860,654	30.51

 

	For the period from the beginning of the year to the end of the Reporting Period (January to September)	For the corresponding period of the previous year (January to September)	Increase/decrease as compared to the corresponding period of the previous year
			(%)
Revenue	102,880,095	91,782,079	12.09
Net profit attributable to shareholders of the listed company	6,937,408	8,278,508	-16.20
Net profit attributable to shareholders of the listed company after deducting non-recurring profits and losses	6,526,228	8,150,110	-19.92
Weighted average return on net assets (%)	7.68	10.34	Decrease by 2.66 ppts
Basic earnings per share (RMB per share)	0.51	0.62	-17.74
Diluted earnings per share (RMB per share)	N/A	N/A	-

 

Non-recurring profits and losses

£ Applicable þ Not applicable

Unit: RMB'000

Items	Amounts for the Period (July to September)	Amounts for the period from the beginning of the year to the end of the Reporting Period (January to September)
Gains or losses on disposal of non-current assets	6,347	75,606
Government subsidies recorded in the income statement for the current period (exclusive of government subsidies which are closely related to the normal operating business of the Company and consistently entitled pursuant to unified standard quota or amount under the government policy)	96,167	310,531
Gains or losses from changes in fair value of financial assets/liabilities held for trading and investment gains from disposal of financial assets/liabilities held for trading and available-for-sale financial assets (except for hedging activities related to the Company's normal operating business)	-3,273	4,879
Reversal of provision for impairment of receivables which are individually tested for impairment	100,000	289,635
Other non-operating income and expenses not covered above	-29,232	-11,792
Profit or loss on disposal of long-term equity investments	0	161,894
Effect of non-controlling shareholders' interests (after taxation)	-50,118	-211,882
Effect of income tax	-42,260	-207,691
Total	77,631	411,180

 

2.2     Total number of shareholders, the top 10 shareholders and the top 10 holders of tradable shares (or shares not subject to selling restrictions) as at the end of the Reporting Period

Unit: share

Total number of shareholders	169,527
Particulars of the top 10 shareholders
Name of shareholder (full name)	Number of shares held as at the end of the Period	Shareholding percentage	Number of shares held subject to selling restrictions	Shares pledged or frozen		Nature of shareholder
				Status	Number
		(%)
China National Aviation Holding Corporation Limited	5,952,236,697	40.98	513,478,818	Frozen	127,445,536	State-owned legal person
Cathay Pacific Airways Limited	2,633,725,455	18.13	0	Nil	0	Foreign legal person
HKSCC NOMINEES LIMITED	1,687,732,499	11.62	0	Unknown		Foreign legal person
China National Aviation Corporation (Group) Limited	1,556,334,920	10.72	0	Frozen	36,454,464	Foreign legal person
China National Aviation Fuel Group Corporation	468,485,702	3.23	0	Nil	0	State-owned legal person
China Securities Finance Corporation Limited	310,201,830	2.14	0	Nil	0	State-owned legal person
Zhongyuan Equity Investment Management Co., Ltd.	256,739,405	1.77	0	Unknown	256,739,405	State-owned legal person
China Structural Reform Fund Co., Ltd.	115,565,509	0.80	0	Nil	0	State-owned legal person
National Social Security Fund 118	58,964,678	0.41	0	Nil	0	State-owned legal person
Hong Kong Securities Clearing Company Ltd.	49,292,604	0.34	0	Unknown		Foreign legal person

 

Particulars of the top 10 shareholders not subject to selling restrictions
Name of shareholder	Number of tradable shares held not subject to selling restrictions	Class and number of shares
		Class	Number
China National Aviation Holding Corporation Limited	5,438,757,879	RMB ordinary shares	5,438,757,879
Cathay Pacific Airways Limited	2,633,725,455	Overseas listed foreign shares	2,633,725,455
HKSCC NOMINEES LIMITED	1,687,732,499	Overseas listed foreign shares	1,687,732,499
China National Aviation Corporation (Group) Limited	1,556,334,920	RMB ordinary shares	1,332,482,920
		Overseas listed foreign shares	223,852,000
China National Aviation Fuel Group Corporation	468,485,702	RMB ordinary shares	468,485,702
China Securities Finance Corporation Limited	310,201,830	RMB ordinary shares	310,201,830
Zhongyuan Equity Investment Management Co., Ltd.	256,739,405	RMB ordinary shares	256,739,405
China Structural Reform Fund Co., Ltd.	115,565,509	RMB ordinary shares	115,565,509
National Social Security Fund 118	58,964,678	RMB ordinary shares	58,964,678
Hong Kong Securities Clearing Company Ltd.	49,292,604	RMB ordinary shares	49,292,604
Explanation on connected relationship or action in concert among the above shareholders	China National Aviation Corporation (Group) Limited is a wholly-owned subsidiary of China National Aviation Holding Corporation Limited. Accordingly, China National Aviation Holding Corporation Limited is directly and indirectly interested in 51.70% of the shares of the Company.
Explanation of holders of preference shares with restored voting rights and number of shares held	Nil

 

1.      HKSCC NOMINEES LIMITED is a subsidiary of The Stock Exchange of Hong Kong Limited and its principal business is acting as nominee for and on behalf of other corporate shareholders or individual shareholders. The 1,687,732,499 H shares held by it in the Company do not include the 166,852,000 H shares held by it as nominee of China National Aviation Corporation (Group) Limited.

2.      According to the "Implementation Measures on Partial Transfer of State-owned Shares to the National Social Security Fund in the Domestic Securities Market" (Cai Qi [2009] No. 94) (《境內證券市場轉持部分國有股充實全國社會保障基金實施辦法》(財企[2009]94號)) and the Notice ([2009] No. 63) jointly issued by the Ministry of Finance, the State-owned Assets Supervision and Administration Commission of the State Council, China Securities Regulatory Commission and the National Council for Social Security Fund, 127,445,536 shares and 36,454,464 shares held by China National Aviation Holding Corporation Limited, the controlling shareholder of the Company, and China National Aviation Corporation (Group) Limited respectively are frozen at present.

2.3     Total number of holders of preference shares, the top 10 holders of preference shares and the top 10 holders of preference shares not subject to selling restrictions as at the end of the Reporting Period

£ Applicable þ Not applicable

 

3.       SIGNIFICANT EVENTS

3.1     Particulars of, and reasons for, significant changes in major items in the accounting statements and key financial indicators of the Company

£ Applicable þ Not applicable

Unit: RMB'000

Items in consolidated balance sheet	Balance at the end of the Reporting Period	Balance at the end of the previous year	Amount of Change	Percentage	Reasons for Change
				(%)
Cash and bank	9,645,275	6,260,074	3,385,201	54.08	Mainly due to the relatively abundant cash flows of the Group in the peak season
Bills receivable and accounts receivable	5,247,723	3,490,775	1,756,948	50.33	Mainly due to the impact of the increase in sales volume
Prepayments	1,301,803	3,113,262	-1,811,459	-58.19	Mainly due to the decrease in prepayments for jet fuel during the Period
Inventories	2,523,405	1,535,769	987,636	64.31	Mainly due to the increase in airplane  consumable and work-in-process
Held-for-sale assets	32,689	283,562	-250,873	-88.47	Mainly due to the disposal of certain aircraft held for sale during the Period
Short-term bonds payable	3,384,130	1,199,450	2,184,680	182.14	Mainly due to the issue of ultra-short-term commercial papers by the Group during the Period
Taxes payable	1,625,701	2,361,253	-735,552	-31.15	Mainly due to the enterprise income taxes paid by the Group during the Period
Long-term loans	4,792,769	7,608,289	-2,815,520	-37.01	Mainly due to the impact of the amount of new loans raised being less than the amount of loans repaid during the Period
Other comprehensive income	151,074	-1,693,743	1,844,817	108.92	Mainly due to the increase in exchange difference on translation of financial statements in foreign currency during the Period

 

Items in consolidated income statement	For the period from the beginning of the year to the end of the Reporting Period (January to September)	For the corresponding period of the previous year (January to September)	Amount of Change	Percentage	Reasons for Change
				(%)
Finance expenses	4,522,277	66,338	4,455,939	6,717.02	Mainly due to the increase in the net exchange loss during the Reporting Period as compared to the corresponding period of the previous year
Investment income	974,517	-252,959	1,227,476	485.25	Mainly due to the increase in the net profit of the Group's associates as compared to the corresponding period of the previous year
Income taxation	1,947,312	2,927,601	-980,289	-33.48	Mainly due to the decrease in taxable income during the Reporting Period as compared to the corresponding period of the previous year

 

Items in consolidated cash flow statement	For the period from the beginning of the year to the end of the Reporting Period (January to September)	For the corresponding period of the previous year (January to September)	Amount of Change	Percentage	Reasons for Change
				(%)
Other cash received relating to operating activities	5,017,851	3,771,018	1,246,833	33.06	Mainly due to the year-on-year increase in the Group's revenue from non-principal businesses during the Period
Net cash proceeds from disposal of fixed assets and intangible assets	367,240	2,536,996	-2,169,75	-85.52	Mainly due to the year-on-year decrease in cash inflows from disposal of aircraft during the Period
Cash received from issue of debentures	6,100,000	600,000	5,500,000	916.67	Mainly due to the year-on-year increase in issue of debentures during the Period
Cash paid under the finance lease	5,791,932	4,441,728	1,350,204	30.40	Mainly due to the year-on-year increase in repayment of the amount payable under the finance lease during the Period

 

3.2     Analysis and explanation on the progress of significant events and their impact and resolutions

£ Applicable þ Not applicable

On 30 August 2018, upon approval at the seventh meeting of the fifth session of the Board of the Company, the Company entered into an equity transfer agreement with China National Aviation Capital Holding Co., Ltd., a controlling subsidiary of China National Aviation Holding Corporation Limited. Pursuant to the agreement, the Company has conditionally agreed to sell and Capital Holding has conditionally agreed to purchase 51% equity interests in Air China Cargo at a consideration of RMB2,438,837,520. Upon completion of the Disposal, Air China Cargo will cease to be a controlling subsidiary of the Company. The Disposal has been approved at the 2018 first extraordinary general meeting of the Company on 19 October 2018.

3.3     Undertakings that were failed to fulfil as scheduled during the Reporting Period

£ Applicable þ Not applicable

3.4     Warnings and explanations with regard to forecast of a probable loss in respect of the accumulative net profits from the beginning of the year to the end of the next reporting period or any significant changes as compared with that of the corresponding period of previous year

£ Applicable þ Not applicable

 

4.       APPENDIX

4.1     Financial Statements

CONSOLIDATED BALANCE SHEET

30 September 2018

Prepared by Air China Limited

Unit: RMB'000 (Unaudited)

Items	Balance at the end of the Period	Balance at the end of the previous year
CURRENT ASSETS:
Cash and bank	9,645,275	6,260,074
Provisions on payables
Contributions made
Financial assets held-for-trading	124,363	-
Financial assets at fair value through profit or loss	-	19,938
Derivative financial assets
Bills receivable and accounts receivable	5,247,723	3,490,775
Including: Bills receivable	224	348
Accounts receivable	5,247,499	3,490,427
Prepayments	1,301,803	3,113,262
Premium receivable
Receivables on reinsurance
Provisions for reinsurance contracts
Other receivables	1,878,196	2,009,253
Including: Interest receivable
Dividend receivable
Purchase of financial assets resold
Inventories	2,523,405	1,535,769
Contract assets
Held-for-sale assets	32,689	283,562
Non-current assets due within a year	-	10,000
Other current assets	5,173,830	4,036,700
Total current assets	25,927,284	20,759,333
NON-CURRENT ASSETS:
Loans and advances
Available-for-sale financial assets	-	1,336,996
Debt investments
Other debt investments	856,377	-
Long-term receivables	809,181	784,339
Long-term equity investments	17,702,969	15,299,017
Investments in other equity instruments	273,489	-
Other non-current financial assets
Investment properties	338,907	330,768
Fixed assets	165,411,815	158,274,275
Construction in progress	32,942,101	30,340,891
Biological assets for production
Oil and gas assets
Intangible assets	4,022,614	4,400,762
Development expenses
Goodwill	1,102,185	1,102,185
Long-term deferred expenses	641,480	657,364
Deferred tax assets	2,550,929	2,431,886
Other non-current assets
Total non-current assets	226,652,047	214,958,483
Total assets	252,579,331	235,717,816
CURRENT LIABILITIES:
Short-term loans	20,541,112	19,483,625
Short-term bonds payable	3,384,130	1,199,450
Borrowings from central bank
Deposits from clients and placements   from other banks
Contributions received
Financial liabilities held-for-trading
Derivative financial liabilities
Bills payable and accounts payable	15,994,716	14,672,242
Domestic air traffic liabilities	2,727,336	2,565,696
International air traffic liabilities	5,459,649	4,840,061
Receipts in advance	-	518,413
Contract liabilities	951,822	-
Sale of financial assets repurchased
Fees and commissions payable
Employee compensations payable	3,292,383	2,533,032
Taxes payable	1,625,701	2,361,253
Other payables	9,029,597	8,581,663
Including: Interest payable	667,519	610,089
Dividend payable
Amounts payable on reinsurance
Reserves on insurance contracts
Brokerage payable
Underwriting fees payable
Held-for-sale liabilities
Non-current liabilities due within a year	14,725,364	14,999,650
Other current liabilities
Total current liabilities	77,731,810	71,755,085
NON-CURRENT LIABILITIES:
Long-term loans	4,792,769	7,608,289
Debentures payable	12,400,000	14,500,000
Including: Preference shares
Perpetual bonds
Long-term payables	4,255,477	3,669,405
Obligations under finance leases	44,509,051	37,798,582
Defined benefit obligations	263,424	263,575
Accrued liabilities	473,524	492,869
Deferred income	706,633	3,568,127
Deferred tax liabilities	813,135	1,130,054
Other non-current liabilities	3,344,922	-
Total non-current liabilities	71,558,935	69,030,901
Total liabilities	149,290,745	140,785,986
OWNER'S EQUITY (OR SHAREHOLDER'S  EQUITY)
Paid-up capital (or share capital)	14,524,815	14,524,815
Other equity instruments
Including: Preference shares
Perpetual bonds
Capital reserve	26,270,841	26,270,841
Less: Treasury shares
Other comprehensive income	151,074	-1,693,743
Specific reserves
Surplus reserves	9,873,710	9,177,905
General risk provisions	69,742	69,742
Retained earnings	43,042,636	37,771,234
Total owner's equity attributable to equity   shareholders of the Company	93,932,818	86,120,794
Non-controlling interests	9,355,768	8,811,036
Total owner's equity (or shareholder's equity)	103,288,586	94,931,830
Total liabilities and owner's equity     (or shareholder's equity)	252,579,331	235,717,816

Legal representative: Mr. Cai Jianjiang

Person in charge of accounting function: Mr. Xiao Feng

Person in charge of accounting department: Mr. Zhan Zhong

 

BALANCE SHEET OF THE COMPANY

30 September 2018

Prepared by Air China Limited

Unit: RMB'000 (Unaudited)

Items	Balance at the end of the Period	Balance at the end of the previous year
CURRENT ASSETS:
Cash and bank	6,315,690	3,172,520
Financial assets held-for-trading
Derivative financial assets
Bills receivable and accounts receivable	6,119,021	3,534,850
Including: Bills receivable
Accounts receivable
Prepayments	840,465	2,612,939
Other receivables	1,961,951	1,913,843
Including: Interest receivable
Dividend receivable
Inventories	217,325	97,900
Contract assets
Held-for-sale assets	32,689	283,562
Non-current assets due within a year
Other current assets	2,100,209	1,173,376
Total current assets	17,587,350	12,788,990
NON-CURRENT ASSETS:
Available-for-sale financial assets	-	22,783
Entrusted loans	-	1,020,000
Debt investments
Other debt investments
Long-term receivables	470,982	449,913
Long-term equity investments	27,823,169	27,325,997
Investments in other equity instruments	22,783	-
Other non-current financial assets
Investment properties
Fixed assets	110,780,006	106,694,613
Construction in progress	22,900,263	20,856,626
Biological assets for production
Oil and gas assets
Intangible assets	2,695,771	2,758,672
Development expenses
Goodwill
Long-term deferred expenses	297,824	312,285
Deferred tax assets	2,152,716	2,034,870
Other non-current assets
Total non-current assets	167,143,514	161,475,759
Total assets	184,730,864	174,264,749
CURRENT LIABILITIES:
Short-term loans	13,296,000	11,538,000
Financial liabilities held-for-trading
Derivative financial liabilities
Bills payable and accounts payable	13,555,331	11,975,550
Domestic air traffic liabilities	1,948,391	1,821,334
International air traffic liabilities	4,951,776	4,455,368
Receipts in advance	-	183,194
Contract liabilities	399,501	-
Employee compensations payable	1,362,158	852,023
Taxes payable	1,122,370	1,118,137
Other payables	8,312,667	8,279,541
Including: Interest payable	472,004	542,539
Dividend payable
Held-for-sale liabilities
Non-current liabilities due within a year	9,823,659	8,738,784
Other current liabilities
Total current liabilities	54,771,853	48,961,931
NON-CURRENT LIABILITIES:
Long-term loans	1,522,623	1,871,198
Debentures payable	10,500,000	14,500,000
Including: Preference shares
Perpetual bonds
Long-term payables	2,104,953	1,928,023
Obligations under finance leases	27,354,750	23,643,577
Defined benefit obligations
Accrued liabilities	132,280	158,711
Deferred income	380,166	2,935,541
Deferred tax liabilities
Other non-current liabilities	2,968,426	-
Total non-current liabilities	44,963,198	45,037,050
Total liabilities	99,735,051	93,998,981
OWNER'S EQUITY (OR SHAREHOLDER'S  EQUITY)
Paid-up capital (or share capital)	14,524,815	14,524,815
Other equity instruments
Including: Preference shares
Perpetual bonds
Capital reserve	30,618,680	30,618,680
Less: Treasury shares
Other comprehensive income	217,593	219,029
Specific reserves
Surplus reserves	9,836,604	9,140,799
Retained earnings	29,798,121	25,762,445
Total owner's equity (or shareholder's equity)	84,995,813	80,265,768
Total liabilities and owner's equity  (or shareholder's equity)	184,730,864	174,264,749

Legal representative: Mr. Cai Jianjiang

Person in charge of accounting function: Mr. Xiao Feng

Person in charge of accounting department: Mr. Zhan Zhong

 

CONSOLIDATED INCOME STATEMENT

January to September 2018

Prepared by Air China Limited

Unit: RMB'000 (Unaudited)

Items	Amounts for the Period (July to September)	Amounts for the corresponding period of the previous year (July to September)	Amounts for the period from the beginning of the year to the end of the Reporting Period (January to September)	Amounts for the period from the beginning of the previous year to the end of the previous Reporting Period (January to September)
I.      Revenue from operations	38,637,773	34,401,461	102,880,095	91,782,079
Including: Revenue	38,637,773	34,401,461	102,880,095	91,782,079
Interest income
Premium earned
Fees and commission income
II.    Total operating costs	35,240,204	27,682,153	96,633,464	80,858,572
Including: Operating costs	29,817,131	25,220,307	84,069,227	72,874,900
Interest expenses
Fees and commission expenses
Returned premium
Net reimbursement paid
Net amounts of provisions on insurance contracts drawn
Bonus paid on insurance policy
Reinsurance premium
Taxes and other levies	53,054	61,408	163,086	220,290
Selling expenses	1,687,850	1,602,723	4,750,436	4,674,358
General and administrative expenses	1,141,159	1,015,313	3,351,877	2,944,291
R&D expenses	20,743	18,256	61,250	54,357
Finance expenses	2,622,059	-247,213	4,522,277	66,338
Including:     Interest expenses	762,271	704,144	2,132,416	2,296,554
Interest income	52,408	59,935	112,090	149,641
Impairment loss of assets	-	11,359	440	24,038
Impairment loss of credit	-101,792	-	-285,129	-
Add: Other income	607,764	479,940	2,287,680	1,762,871
Investment income (loss is represented by "-" sign)	596,386	111,062	974,517	-252,959
Including: Share of profits or losses of associates and joint ventures	579,678	94,281	772,454	-306,567
Gains from net exposure to hedging (loss is represented by "-" sign)
Gains from changes in fair value (loss is represented by "-" sign)	-1,735	215	323	304
Gains from disposal of assets (loss is represented by "-" sign)	12,074	48,376	84,258	48,591
Exchange gains (loss is represented by "-" sign)
III.   Profit from operations (loss is represented by "-" sign)	4,612,058	7,358,901	9,593,409	12,482,314
Add: Non-operating income	25,776	23,609	59,023	70,196
Including: Gains arising from disposal of non-current assets	237	251	1,303	832
Less: Non-operating expenses	60,736	18,013	79,467	33,256
Including: Loss arising from disposal of non-current assets	5,964	1,164	9,955	3,939
IV.    Total profit (total loss is represented by "-" sign)	4,577,098	7,364,497	9,572,965	12,519,254
Less: Income taxation	848,305	1,679,317	1,947,312	2,927,601
V.     Net profit (net loss is represented by "-" sign)	3,728,793	5,685,180	7,625,653	9,591,653
(I)     Classified by continuity of operations
1. Net profit from continuing operations (net loss is represented by "-" sign)	3,728,793	5,685,180	7,625,653	9,591,653
2. Net profit from discontinued operations (net loss is represented by "-" sign)
(II)    Classified by ownership of equity
1. Net profits attributable to shareholders of the Company	3,468,889	4,952,088	6,937,408	8,278,508
2. Net profits attributable to non-controlling interests	259,904	733,092	688,245	1,313,145
VI.    Other comprehensive income after taxation	972,599	-472,893	2,066,810	-1,180,120
Other comprehensive income after taxation attributable to shareholders of the Company	949,055	-449,799	2,042,501	-1,173,758
(I)   Other comprehensive income that  cannot be reclassified to profit or  loss	-6,634	-	-18,377	-13,441
1. Changes arising on remeasurement of defined benefit plans	-	-	-6,022	-13,441
2. Other comprehensive income accounted for using the equity method that cannot be reclassified to profit or loss	-	-	-1,436	-
3. Change in fair value of investments in other equity instruments	-6,634	-	-10,919	-
4. Change in fair value of own credit risk
(II)  Other comprehensive income that will  be reclassified to profit or loss	955,689	-449,799	2,060,878	-1,160,317
1. Other comprehensive income accounted for using the equity method that may be reclassified to profit or loss	20,544	-	956,874	-133,787
2. Change in fair value of other debt investments	2,784	-	4,791	-
3. Amount included in other comprehensive income on reclassification of financial assets
4. Provision for credit impairment of other debt investments
5. Cash flows hedging reserve
6. Exchange difference on translation of financial statements in foreign currency	932,361	-438,712	1,099,213	-1,056,648
7. Fair value gain or loss of available-for-sale financial assets	-	-11,087	-	30,118
Other comprehensive income after taxation attributable to non-controlling interests	23,544	-23,094	24,309	-6,362
VII.  Total comprehensive income	4,701,392	5,212,287	9,692,463	8,411,533
Total comprehensive income attributable to shareholders of the Company	4,417,944	4,502,289	8,979,909	7,104,750
Total comprehensive income attributable to non-controlling interests	283,448	709,998	712,554	1,306,783
VIII. Earnings per share:
(I)   Basic earnings per share (RMB per  share)	0.26	0.37	0.51	0.62
(II)  Diluted earnings per share (RMB per  share)	N/A	N/A	N/A	N/A

Legal representative: Mr. Cai Jianjiang

Person in charge of accounting function: Mr. Xiao Feng

Person in charge of accounting department: Mr. Zhan Zhong

 

INCOME STATEMENT OF THE COMPANY

January to September 2018

Prepared by Air China Limited

Unit: RMB'000 (Unaudited)

Items	Amounts for the Period (July to September)	Amounts for the corresponding period of the previous year (July to September)	Amounts for the period from the beginning of the year to the end of the Reporting Period (January- September)	Amounts for the period from the beginning of the previous year to the end of the previous Reporting Period (January- September)
I.      Revenue from operations	26,603,234	23,784,535	70,085,373	63,148,234
Less: Operating costs	20,425,043	17,263,149	57,259,408	50,117,799
Taxes and other levies	18,324	18,742	56,669	84,836
Selling expenses	1,263,580	1,148,934	3,577,571	3,448,329
General and administrative expenses	440,221	435,480	1,282,913	1,224,923
R&D expenses	11,881	11,254	36,964	36,286
Finance expenses	1,529,253	-19,850	2,743,035	403,697
Including: Interest expenses	492,692	505,779	1,406,457	1,643,872
Interest income	44,282	37,567	87,474	82,256
Impairment loss of assets	-	-	-	1,991
Impairment loss of credit	-	-	3,616	-
Add: Other income	337,060	310,641	1,548,136	1,370,765
Investment income (loss is represented by "-" sign)	409,883	390,299	894,755	809,808
Including: Share of profits or losses of associates and joint ventures	373,456	386,424	707,040	638,111
Gains from net exposure to hedging (loss is represented by "-" sign)
Gains from changes in fair value (loss is represented by "-" sign)
Income from disposal of assets (loss is represented by "-" sign)	2,928	49,546	74,962	49,761
II.    Profit from operations (loss is represented by "-" sign)	3,664,803	5,677,312	7,643,050	10,060,707
Add: Non-operating income	6,852	3,175	11,210	9,144
Including: Gains arising from disposal of non-current assets	75	17	938	92
Less: Non-operating expenses	8,691	3,229	15,691	9,886
Including: Loss arising from disposal of non-current assets	4,273	433	6,140	555
III.   Total profit (total loss is represented by "-" sign)	3,662,964	5,677,258	7,638,569	10,059,965
Less: Income Taxation	769,552	1,308,068	1,591,806	2,240,010
IV.    Net profit (net loss is represented by "-" sign)	2,893,412	4,369,190	6,046,763	7,819,955
(I)   Net profit from continuing operations  (net loss is represented by "-" sign)	2,893,412	4,369,190	6,046,763	7,819,955
(II)  Net profit from discontinued operations  (net loss is represented by "-" sign)
V.     Other comprehensive income after taxation	-	-	-1,436	22,929
(I)   Other comprehensive income that  cannot be subsequently reclassified  to profit or loss	-	-	-1,436	-
1. Change arising from re-measurement of defined benefit plans
2. Other comprehensive income accounted for using the equity method that cannot be reclassified to profit or loss	-	-	-1,436	-
3. Changes in fair value of investment in other equity instruments
4. Changes in fair value of enterprise's own credit risk
(II)  Other comprehensive income that will  be reclassified to profit or loss	-	-	-	22,929
1. Other comprehensive income accounted for using the equity method that can be reclassified to profit or loss	-	-	-	22,929
2. Change in fair value of other debt investments
3. Amount of financial assets reclassified into other comprehensive income
4. Credit impairment reserve for other debt investment
5. Reserve for cash flow hedging
6. Differences on translation of foreign currency financial statements
VI.    Total comprehensive income	2,893,412	4,369,190	6,045,327	7,842,884
VII.  Earnings per share:
(I)   Basic earnings per share  (RMB per share)
(II)  Diluted earnings per share  (RMB per share)

Legal representative: Mr. Cai Jianjiang

Person in charge of accounting function: Mr. Xiao Feng

Person in charge of accounting department: Mr. Zhan Zhong

 

CONSOLIDATED CASH FLOW STATEMENT

January to September 2018

Prepared by Air China Limited

Unit: RMB'000 (Unaudited)

Items	Amounts for the period from the beginning of the year to the end of the Reporting Period (January- September)	Amounts for the period from the beginning of the previous year to the end of the previous Reporting Period (January- September)
I.     Cash flows from operating activities:
Cash received from sales of goods and provision of services	107,714,571	96,270,956
Net increase in deposits from clients and placements from other banks
Net increase in borrowings from central bank
Net increase in borrowings from other financial institutions
Cash received from premiums of original insurance contracts
Net cash receipt from reinsurance operations
Net increase in reserve of the insured and investment
Net increase in disposal of financial assets at fair value through profit or loss
Cash received from interests, fees and commission
Net increase in contributions received
Net increase in cash from repurchase operations
Refund of tax and levy	90,838	22,972
Other cash received relating to operating activities	5,017,851	3,771,018
Subtotal of cash inflows of operating activities	112,823,260	100,064,946
Cash paid for goods purchased and services received	59,752,837	52,388,593
Net increase in loans and advances to clients
Net increase in deposits in central bank and other banks
Cash paid in respect of claims under original insurance contracts
Cash paid for interests, fees and commission
Cash paid for bonus paid on insurance policy
Cash paid to or on behalf of employees	17,185,580	15,770,795
Tax and levies paid	5,636,907	5,235,393
Other cash paid relating to operating activities	5,633,123	7,809,511
Subtotal of cash outflows from operating activities	88,208,447	81,204,292
Net cash flows from operating activities	24,614,813	18,860,654
II.    Cash flows from investment activities:
Cash received from sales and redemption of investments	275,897	-
Recovery of the secured bank deposits	7,477	4,902
Cash received from investment income	250,081	218,769
Net cash proceeds from disposal of fixed assets, intangible assets and other long-term assets	367,240	2,536,996
Net cash proceeds from disposal of subsidiaries and other business units
Other cash received relating to investment activities	150,454	157,169
Subtotal of cash inflows from investment activities	1,051,149	2,917,836
Cash paid for purchase of fixed assets, intangible assets and other long-term assets	10,020,140	10,143,733
Cash paid for investments	178,904	118,132
Net increase in secured loans
Net cash payments for acquisition of subsidiaries and other business units
Other cash paid relating to investment activities	177,632	8,328
Subtotal of cash outflows from investment activities	10,376,676	10,270,193
Net cash flows from investment activities	-9,325,527	-7,352,357
III.  Cash flows from financing activities:
Cash received from capital injection	-	11,201,374
Including: Cash received from capital injection of minority shareholders in subsidiaries
Cash received from borrowings	27,706,042	21,516,462
Cash received from issue of debentures	6,100,000	600,000
Other cash received relating to financing activities
Subtotal of cash inflows from financing activities	33,806,042	33,317,836
Cash paid for repayment of borrowings	30,496,786	25,994,065
Cash paid for repayment of debentures	5,500,000	5,147,717
Cash paid for distribution of dividends, profits or payment of interest expenses	4,403,925	4,184,214
Including: Dividends and profits paid to minority shareholders by subsidiaries	185,043	176,120
Cash paid under the finance lease	5,791,932	4,441,728
Other cash paid relating to financing activities
Subtotal of cash outflows from financing activities	46,192,643	39,767,724
Net cash flows from financing activities	-12,386,601	-6,449,888
IV.  Effect of exchange rate changes on cash and cash equivalents	107,569	-134,197
V.    Net increase in cash and cash equivalents	3,010,254	4,924,212
Add: Balance of cash and cash equivalents as at the      beginning of the period	5,562,907	6,848,018
VI.  Balance of cash and cash equivalents as at the end of the period	8,573,161	11,772,230

Legal representative: Mr. Cai Jianjiang

Person in charge of accounting function: Mr. Xiao Feng

Person in charge of accounting department: Mr. Zhan Zhong

 

CASH FLOW STATEMENT OF THE COMPANY

January to September 2018

Prepared by Air China Limited

Unit: RMB'000 (Unaudited)

Items	Amounts for the period from the beginning of the year to the end of the Reporting Period (January- September)	Amounts for the period from the beginning of the previous year to the end of the previous Reporting Period (January- September)
I.     Cash flows from operating activities:
Cash received from sales of goods and provision of services	71,119,564	64,344,737
Refund of tax and levy
Other cash received relating to operating activities	3,422,622	2,887,597
Subtotal of cash inflows of operating activities	74,542,186	67,232,334
Cash paid for goods purchased and services received	41,569,413	38,521,178
Cash paid to or on behalf of employees	8,036,437	7,282,311
Tax and levies paid	3,187,847	3,211,344
Other cash paid relating to operating activities	4,593,937	4,565,204
Subtotal of cash outflows from operating activities	57,387,634	53,580,037
Net cash flows from operating activities	17,154,552	13,652,297
II.    Cash flows from investment activities:
Cash received from sales and redemption of investments	1,020,000	-
Cash received from investment income	328,820	402,223
Net cash proceeds from disposal of fixed assets, intangible assets and other long-term assets	1,041,554	917,646
Net cash proceeds from disposal of subsidiaries and other business units
Other cash received relating to investment activities	91,128	82,256
Subtotal of cash inflows from investment activities	2,481,502	1,402,125
Cash paid for purchase of fixed assets, intangible assets and other long-term assets	7,951,473	5,495,017
Cash paid for investments
Net cash payments for acquisition of subsidiaries and other business units
Other cash paid relating to investment activities
Subtotal of cash outflows from investment activities	7,951,473	5,495,017
Net cash flows from investment activities	-5,469,971	-4,092,892
III.  Cash flows from financing activities:
Cash received from capital injection	-	11,201,374
Cash received from borrowings	21,088,936	11,767,567
Cash received from issue of bonds
Other cash received relating to financing activities
Subtotal of cash inflows from financing activities	21,088,936	22,968,941
Cash paid for repayment of borrowings	18,558,918	19,548,222
Cash paid for repayment of debentures	3,500,000	-
Cash paid for distribution of dividends, profits or payment of interest expenses	3,330,452	3,186,951
Other cash paid relating to financing activities	4,268,662	3,365,810
Subtotal of cash outflows from financing activities	29,658,032	26,100,983
Net cash flows from financing activities	-8,569,096	-3,132,042
IV.  Effect of exchange rate changes on cash and cash equivalents	27,685	-60,683
V.    Net increase in cash and cash equivalents	3,143,170	6,366,680
Add: Balance of cash and cash equivalents as at      the beginning of the period	3,172,520	2,221,952
VI.  Balance of cash and cash equivalents as at the end of the period	6,315,690	8,588,632

Legal representative: Mr. Cai Jianjiang

Person in charge of accounting function: Mr. Xiao Feng

Person in charge of accounting department: Mr. Zhan Zhong

 

4.2     Auditor's Report

£ Applicable þ Not applicable

By Order of the Board

Air China Limited

Zhou Feng Tam Shuit Mui

Joint Company Secretaries

Beijing, the PRC, 30 October 2018

As at the date of this announcement, the directors of the Company are Mr. Cai Jianjiang, Mr. Song Zhiyong, Mr. Xue Yasong, Mr. John Robert Slosar, Mr. Wang Xiaokang*, Mr. Liu Deheng*, Mr. Stanley Hui Hon-chung* and Mr. Li Dajin*.

* Independent non-executive director of the Company

 

END

 

 

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