FIRST QUARTERLY REPORT OF 2021

RNS Number : 2667X

Air China Ld

30 April 2021

 

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

AIR CHINA LIMITED

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

(Stock Code: 00753)

FIRST QUARTERLY REPORT OF 2021

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 29 April 2021 and passed the resolution approving the first quarterly report of 2021 of the Company for the period ended 31 March 2021 (the "Reporting Period" or "Period") prepared in accordance with the PRC Accounting Standards for Business Enterprises.

I.  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  All directors of the Company attended the Board meeting to review the quarterly report.

1.3  Mr. Song Zhiyong (person in charge 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 first quarterly report of the Company is unaudited.

II.  BASIC INFORMATION OF THE COMPANY

2.1  Major financial data

Unit: RMB'000

	At the end of the ReportingPeriod	At the end of the previousyear	Increase/decrease at the end of the ReportingPeriodascomparedtotheendofthepreviousyear
			(%)
Totalassets	288,384,073	284,070,710	1.52
Netassetsattributabletoshareholders ofthelistedcompany	71,464,006	77,582,421	-7.89

	Fortheperiodfrom the beginning of theyear to the end of theReportingPeriod	For thecorresponding period oftheprevious year	Increase/decrease ascomparedtothe correspondingperiod oftheprevious year
			(%)
Netcashflowsfromoperatingactivities	-1,254,296	-8,716,790	85.61

	Fortheperiodfrom the beginning of theyear to the end of theReportingPeriod	For thecorresponding period oftheprevious year	Increase/decrease ascomparedtothe correspondingperiod oftheprevious year
			(%)
Revenue	14,580,678	17,255,757	-15.50
Netprofitattributabletoshareholders ofthelistedcompany	-6,207,790	-4,805,210	-29.19
Netprofit attributable to shareholdersofthelistedcompanyafterdeducting non-recurringprofitsandlosses	-6,301,309	-4,883,411	-29.03
Weightedaveragereturnonnetassets (%)	-8.33	-5.26	Decreasedby3.07percentagepoints
Basicearningspershare(RMBper share)	-0.45	-0.35	-28.57
Dilutedearningspershare(RMBper share)	N/A	N/A	N/A

Non-recurring profits and losses items and amounts

Applicable  Not applicable

Unit: RMB'000

Items	AmountsforthePeriod
Gainsorlossesondisposalofnon-currentassets	-1,991
Governmentsubsidiesrecordedintheincomestatementforthecurrentperiod(excludingthosecloselyrelatedtotheCompany'snormalbusinessandcontinuouslyentitledtoinfixedamountsorquotasinaccordancewiththerequirementsofthestatepolicy)	124,528
Othernon-operatingincomeandexpensesnotcoveredabove	21,162
Effectofnon-controllingshareholders'interests(aftertaxation)	-15,847
Effectofincometax	-34,333
Total	93,519

2.2  Total number of shareholders, particulars of 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

Totalnumberofshareholders(account)	152,624
Particularsofthetop10shareholders
Nameofshareholder(fullname)	NumberofsharesheldasattheendofthePeriod	Shareholdingpercentage	Numberofsharesheldsubjecttosellingrestrictions			Natureofshareholder
				Sharespledge Status	dorfrozen Number
		(%)
ChinaNationalAviationHoldingCorporation Limited	5,952,236,697	40.98	0	Frozen	127,445,536	State-owned legalperson
CathayPacificAirwaysLimited	2,633,725,455	18.13	0	Nil	0	Foreignlegal person
HKSCCNOMINEESLIMITED	1,687,906,388	11.62	0	Nil	0	Foreignlegal person
ChinaNationalAviationCorporation(Group) Limited	1,556,334,920	10.72	0	Frozen	36,454,464	Foreignlegal person
ChinaNationalAviationFuelGroupCorporation	463,083,102	3.19	0	Nil	0	State-owned legalperson
ChinaSecuritiesFinanceCorporationLimited	311,302,365	2.14	0	Nil	0	State-owned legalperson
HongKongSecuritiesClearingCompanyLtd.	168,838,788	1.16	0	Nil	0	Foreignlegal person
AgriculturalBankofChinaLimited-GFBalancedPreferredHybridSecuritiesInvestmentFund	44,657,648	0.31	0	Nil	0	Others
BankofChinaLimited-BusinessSolicitationIndustrySelectiveStockSecuritiesInvestment Fund ( 招 )	30,624,884	0.21	0	Nil	0	Others
KeMiaorong ( 柯 )	26,822,811	0.18	0	Nil	0	Domesticnaturalperson

Particularsofthetop10shareholdersnotsubjecttosellingrestrictions
Nameofshareholder	Numberoftradablesharesheldnotsubjecttoselling restrictions
		Classandnumb Class	erofshares Number
ChinaNationalAviationHoldingCorporationLimited	5,952,236,697	RMBordinaryshares	5,952,236,697
CathayPacificAirwaysLimited	2,633,725,455	Overseaslistedforeignshares	2,633,725,455
HKSCCNOMINEESLIMITED	1,687,906,388	Overseaslistedforeignshares	1,687,906,388
ChinaNationalAviationCorporation(Group)Limited	1,556,334,920	RMBordinaryshares	1,332,482,920
		Overseaslistedforeignshares	223,852,000
ChinaNationalAviationFuelGroupCorporation	463,083,102	RMBordinaryshares	463,083,102
ChinaSecuritiesFinanceCorporationLimited	311,302,365	RMBordinaryshares	311,302,365
HongKongSecuritiesClearingCompanyLtd.	168,838,788	RMBordinaryshares	168,838,788
AgriculturalBankofChinaLimited-GFBalancedPreferredHybridSecuritiesInvestmentFund	44,657,648	RMBordinaryshares	44,657,648
BankofChinaLimited-BusinessSolicitationIndustrySelectiveStock SecuritiesInvestmentFund ( 招 )	30,624,884	RMBordinaryshares	30,624,884
KeMiaorong ( 柯 )	26,822,811	RMBordinaryshares	26,822,811
Explanationonconnectedrelationshiporactioninconcertamongtheabove shareholders	ChinaNationalAviation Corporation (Group) Limited is a wholly-owned subsidiary of ChinaNationalAviationHoldingCorporationLimited.Accordingly,ChinaNationalAviationHoldingCorporationLimitedisdirectlyandindirectlyinterestedin51.70%ofthesharesoftheCompany.
Explanationonholdersofpreferenceshareswithrestoredvotingrightsandnumberofsharesheld	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 1,687,906,388 H shares held by it in the Company do not include the 166,852,000 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) ( 《

法 ( 財 [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, particulars of the top 10 holders of 

preference shares and the shareholdings of the top 10 holders of preference shares not

  subject to selling restrictions as at the end of the Reporting Period

Applicable    Not applicable

III.  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  Not applicable

The Group's revenue amounted to RMB14.581 billion and the net loss attributable to equity 

shareholders of the Company amounted to RMB6.208 billion in the first quarter of 2021.

Unit: RMB'000

Itemsinconsolidated balancesheet	31March 2021	31December 2020	PercentageofChange(%)	ReasonsforChange
Cash andbankbalance	9,912,976	6,575,243	50.76	Mainly due to the increase in cash andbank balance pursuant to the capital useplan.
Accountsreceivable	3,898,888	2,942,799	32.49	Mainlyduetotheincreaseinpassenger ticketreceivables.
Inventories	2,452,987	1,853,990	32.31	Mainlyduetotheincreaseinthenumberofgoodsinprocessandsparepartsof flightequipment.
Short-termfinancing bondspayable	702,052	510,810	37.44	Mainlyduetotheimpactoftheaddition ofshort-termfinancingbonds.
Billspayable	282,111	62,570	350.87	Impactoftheadditionofbankacceptance notesduringtheReportingPeriod.

Unit: RMB'000

Itemsinconsolidated incomestatement	Firstquarter of2021	Firstquarter of2020	PercentageofChange(%)	ReasonsforChange
Financeexpenses	1,615,728	2,329,605	-30.64	Duetotheyear-on-yeardecreaseintheexchangelossduringtheReporting Period.
Incometaxexpenses	-1,690,959	-1,172,789	-44.18	Due todeferred incometax expenses incurredinrecognizingthedeductibletaxlossesduringtheReportingPeriod.

Unit: RMB'000

Itemsinconsolidatedstatementofcashflows	Firstquarter of2021	Firstquarter of2020	PercentageofChange(%)	ReasonsforChange
Othercashreceivedrelatingtooperating activities	1,624,412	2,374,432	-31.59	Mainlydue to the year-on-year increaseinthenetlendingmadebyasubsidiary oftheGroupduringthePeriod.
Cashpaidforgoods purchasedandservices received	8,587,763	12,857,493	-33.21	Mainlyduetotheyear-on-yeardecrease inpaymentsfor,amongothers, aviationfuelpaidduringthePeriod.
Cashpaidforpurchase andconstructionof fixedassets,intangibleassetsandotherlong- termassets	562,481	2,811,387	-79.99	Mainlydueto the year-on-year decreaseinadvancepaymentsforaircraftduring thePeriod.
Cashreceivedfrom issuanceofdebentures	700,000	9,000,000	-92.22	Duetotheyear-on-yeardecreaseintheissuanceofdebenturesduringthe Period
Cashreceivedfromcapital injection	490,148	-	N/A	Duetothecapitalcontributionreceived fromminorityshareholdersofa subsidiaryoftheGroupduringthe Period.
Cashpaidforrepayment ofborrowings	4,219,254	1,971,740	113.99	Duetotheyear-on-yearincreaseinrepaymentofborrowingsduringthe Period.
Cashpaidforrepayment ofdebentures	1,000,000	5,300,000	-81.13	Duetotheyear-on-yeardecreaseinrepaymentofdebenturesduringthe Period.
Othercashpaidrelatingto financingactivities	3,616,317	2,749,273	31.54	Duetotheyear-on-yearincreaseinlease paymentpaidduringthePeriod.

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

Applicable  Not applicable

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

Applicable  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  Not applicable

In the event that the impact of the COVID-19 pandemic extends into the next reporting 

period, it is estimated that the results of the Group during the period from the beginning of 

the year to the end of the next reporting period will be affected. With the domestic pandemic

  brought under control and the coverage of vaccination continuing to expand, the

  demand for civil aviation transportation will gradually recover. The Group will capitalize on

 the opportunity of market recovery by optimizing transport capacity investment in a timely

  manner, and take various initiatives, all with an active effort to achieve better performances.

Companyname		AirChinaLimited
Legalrepresentative		Mr.SongZhiyong
Date		29April2021

IV.  APPENDICES

4.1  Financial Statements CONSOLIDATED BALANCE SHEET

31 March 2021

Prepared by Air China Limited

Unit: RMB'000 (Unaudited)

Items	31March 2021	31December 2020
CURRENTASSETS:
Cashandbankbalance	9,912,976	6,575,243
Provisionsonpayables
Contributionsmade
Financialassetsheld-for-trading	50,014
Derivativefinancialassets
Billsreceivable	2,143	6,593
Accountsreceivable	3,898,888	2,942,799
Receivablesfinancing
Prepayments	502,387	421,237
Premiumreceivable
Receivablesonreinsurance
Provisionsforreinsurancecontracts
Otherreceivables	3,307,743	3,491,233
Including:Interestreceivable
Dividendreceivable

Items	31March 2021	31December 2020
Purchaseoffinancialassetsresold
Inventories	2,452,987	1,853,990
Contractassets
Held-for-saleassets
Non-currentassetsduewithinayear
Othercurrentassets	4,591,796	4,444,806
Totalcurrentassets	24,718,934	19,735,901
NON-CURRENTASSETS:
Loansandadvances
Debtinvestments
Otherdebtinvestments	1,279,422	1,344,829
Long-termreceivables	604,241	621,398
Long-termequityinvestments	11,403,923	12,379,614
Investmentsinotherequityinstruments	230,373	235,223
Othernon-currentfinancialassets
Investmentproperties	137,225	138,688
Fixedassets	86,199,984	87,717,717
Constructioninprogress	35,776,305	38,138,866
Biologicalassetsforproduction
Oilandgasassets
Right-of-useassets	114,680,176	112,074,148
Intangibleassets	3,582,001	3,597,206
Developmentexpenses
Goodwill	1,102,185	1,102,185
Long-termdeferredexpenses	275,706	292,972
Deferredtaxassets	8,393,598	6,691,963
Othernon-currentassets
Totalnon-currentassets	263,665,139	264,334,809
Totalassets	288,384,073	284,070,710
CURRENTLIABILITIES:
Short-termloans	34,550,530	29,327,087
Short-termfinancingbondspayable	702,052	510,810
Borrowingsfromcentralbank
Contributionsreceived

Items	31March 2021	31December 2020
Financialliabilitiesheld-for-trading
Derivativefinancialliabilities
Billspayable	282,111	62,570
Accountspayables	14,192,448	12,740,096
Airtrafficliabilities	2,185,697	2,002,649
Receiptsinadvance
Contractliabilities	1,509,446	1,280,102
Saleoffinancialassetsrepurchased
Depositsfromclientsandplacementsfromotherbanks
Brokeragepayable
Underwritingfeespayable
Employeecompensationspayable	1,880,087	2,608,944
Taxespayable	212,693	206,547
Otherpayables	8,724,309	9,600,645
Including:Interestpayable
Dividendpayable
Feesandcommissionspayable
Amountspayableonreinsurance
Held-for-saleliabilities
Non-currentliabilitiesduewithinayear	23,023,916	22,054,735
Othercurrentliabilities
Totalcurrentliabilities	87,263,289	80,394,185

Items	31March 2021	31December 2020
NON-CURRENTLIABILITIES:
Reservesoninsurancecontracts
Long-termloans	25,101,140	21,140,699
Debenturespayable	9,498,639	10,498,398
Including:Preferenceshares
Perpetualbonds
Leaseliabilities	76,707,769	76,098,678
Long-termpayables	6,105,917	5,783,825
Long-termemployeecompensationpayables	231,732	229,332
Accruedliabilities	3,099,970	3,023,109
Deferredincome	482,447	488,791
Deferredtaxliabilities	332,965	334,720
Othernon-currentliabilities	2,120,272	2,264,843
Totalnon-currentliabilities	123,680,851	119,862,395
Totalliabilities	210,944,140	200,256,580
OWNERS'EQUITY(ORSHAREHOLDERS'EQUITY):
Paid-upcapital(orsharecapital)	14,524,815	14,524,815
Otherequityinstruments
Including:Preferenceshares
Perpetualbonds
Capitalreserve	26,270,841	26,270,841
Less:Treasuryshares
Othercomprehensiveincome	-782,212	-871,587
Specialreserves
Surplusreserves	11,564,287	11,564,287
Generalriskprovisions	110,628	110,628
Retainedearnings	19,775,647	25,983,437
Totalowners'equity(orshareholders'equity)attributabletoequityshareholdersoftheparentcompany	71,464,006	77,582,421
Non-controllinginterests	5,975,927	6,231,709
Totalowners'equity(orshareholders'equity)	77,439,933	83,814,130
Totalliabilitiesandowners'equity(orshareholders'equity)	288,384,073	284,070,710

PersoninchargeoftheCompany:Mr.SongZhiyong

Personinchargeofaccountingfunction:Mr.XiaoFeng

Personinchargeofaccountingdepartment:Mr.ZhanZhong

BALANCE SHEET OF THE PARENT COMPANY

31 March 2021

Prepared by Air China Limited

Unit: RMB'000 (Unaudited)

Items	31March 2021	31December 2020
CURRENTASSETS:
Cashandbankbalance	5,093,766	4,651,356
Financialassetsheld-for-trading
Derivativefinancialassets
Billsreceivable
Accountsreceivable	3,124,558	2,259,952
Receivablesfinancing
Prepayments	257,416	261,522
Otherreceivables	2,823,166	2,999,425
Including:Interestreceivable
Dividendreceivable
Inventories	88,787	88,664
Contractassets
Held-for-saleassets
Non-currentassetsduewithinayear
Othercurrentassets	2,584,440	2,327,891
Totalcurrentassets	13,972,133	12,588,810

Items	31March 2021	31December 2020
NON-CURRENTASSETS:
Debtinvestments
Otherdebtinvestments
Long-termreceivables	908,209	934,946
Long-termequityinvestments	24,247,219	24,719,781
Investmentsinotherequityinstruments	22,783	22,783
Othernon-currentfinancialassets
Investmentproperties
Fixedassets	62,694,698	64,110,458
Constructioninprogress	25,240,481	26,891,441
Biologicalassetsforproduction
Oilandgasassets
Right-of-useassets	78,395,914	76,579,042
Intangibleassets	2,483,490	2,479,040
Developmentexpenses
Goodwill
Long-termdeferredexpenses	196,099	217,999
Deferredtaxassets	6,929,567	5,620,570
Othernon-currentassets
Totalnon-currentassets	201,118,460	201,576,060
Totalassets	215,090,593	214,164,870
CURRENTLIABILITIES:
Short-termloans	24,620,295	20,431,852
Financialliabilitiesheld-for-trading
Derivativefinancialliabilities
Billspayable
Accountspayable	10,664,119	10,376,360
Airtrafficliabilities	1,707,653	1,652,124
Receiptsinadvance
Contractliabilities	1,201,576	1,006,813
Employeecompensationspayable	553,174	882,311
Taxespayable	136,897	96,157
Otherpayables	4,767,099	6,254,523
Including:Interestpayable
Dividendpayable
Held-for-saleliabilities
Non-currentliabilitiesduewithinayear	15,471,543	15,306,089
Othercurrentliabilities
Totalcurrentliabilities	59,122,356	56,006,229

Items	31March 2021	31December 2020
NON-CURRENTLIABILITIES:
Long-termloans	18,704,714	16,467,910
Debenturespayable	6,500,000	6,500,000
Including:Preferenceshares
Perpetualbonds
Leaseliabilities	52,265,887	51,955,400
Long-termpayables	2,936,246	2,876,964
Long-termemployeecompensationpayables
Accruedliabilities	2,217,316	2,155,105
Deferredincome	348,093	355,457
Deferredtaxliabilities
Othernon-currentliabilities	1,822,853	1,981,139
Totalnon-currentliabilities	84,795,109	82,291,975
Totalliabilities	143,917,465	138,298,204
OWNERS'EQUITY(ORSHAREHOLDERS'EQUITY):
Paid-upcapital(orsharecapital)	14,524,815	14,524,815
Otherequityinstruments
Including:Preferenceshares
Perpetualbonds
Capitalreserve	30,618,680	30,618,680
Less:Treasuryshares
Othercomprehensiveincome	283,195	283,195
Specialreserves
Surplusreserves	11,527,181	11,527,181
Retainedearnings	14,219,257	18,912,795
Totalowners'equity(orshareholders'equity)	71,173,128	75,866,666
Totalliabilitiesandowners'equity(orshareholders'equity)	215,090,593	214,164,870

PersoninchargeoftheCompany:Mr.SongZhiyong

Personinchargeofaccountingfunction:Mr.XiaoFeng

Personinchargeofaccountingdepartment:Mr.ZhanZhong

CONSOLIDATED INCOME STATEMENT

January to March 2021

Prepared by Air China Limited

Unit: RMB'000 (Unaudited)

Items	Firstquarter of2021	Firstquarter of2020
I.Totalrevenuefromoperations	14,580,678	17,255,757
Including:Operatingincome	14,580,678	17,255,757
Interestincome
Premiumearned
Feesandcommissionincome
II.Totaloperatingcost	23,098,558	23,823,243
Including:Operatingcosts	19,241,297	19,365,536
Interestexpenses
Feesandcommissionexpenses
Returnedpremium
Netreimbursementpaid
Netamountsofprovisionsoninsuranceobligationsdrawn
Bonuspaid on insurance policy
Reinsurancepremium
Taxesandotherlevies	58,856	42,039
Sellingexpenses	1,095,861	1,064,170
Generalandadministrativeexpenses	1,056,567	902,659
R&Dexpenses	30,249	119,234
Finance expenses	1,615,728	2,329,605
Including:Interestexpenses	1,313,417	1,277,782
Interestincome	8,188	15,041
Add:Otherincome	913,601	999,269
Investmentincome(lossisrepresentedby"-"sign)	-1,047,673	-1,238,000
Including:Shareofprofitsofassociatesandjointventures	-1,062,546	-1,252,951
Derecognitionofgainsonfinancialassets measuredatamortisedcost
Exchangegains(lossisrepresentedby"-"sign)
Gainsfromnetexposuretohedging(lossisrepresentedby "-"sign)
Gainsfromchangesinfairvalue(lossisrepresentedby"-" sign)
Impairmentlossofcredit(lossisrepresentedby"-"sign)	-5,228	16,994
Impairmentlossofassets(lossisrepresentedby"-"sign)
Gainsfromdisposalofassets(lossisrepresentedby"-" sign)	-914	387

Items	Firstquarter of2021	Firstquarter of2020
III.Profitfromoperations(lossisrepresentedby"-"sign)	-8,658,094	-6,788,836
Add:Non-operatingincome	27,204	17,633
Less:Non-operatingexpenses	7,119	17,998
IV.Totalprofit(totallossisrepresentedby"-" sign)	-8,638,009	-6,789,201
Less: Income tax expenses	-1,690,959	-1,172,789
V. Net profit (net loss is represented by "-" sign)	-6,947,050	-5,616,412
(I)Classifiedbycontinuityofoperations
1.Netprofitfromcontinuingoperations(netlossisrepresented by"-"sign)	-6,947,050	-5,616,412
2.Netprofitfromdiscontinuedoperation(netlossis representedby"-"sign)
(II)Classified by ownership
1.Netprofitsattributabletoshareholdersoftheparent company(netlossisrepresentedby"-"sign)	-6,207,790	-4,805,210
2.Netprofitsattributabletonon-controllinginterests(netloss isrepresentedby"-"sign)	-739,260	-811,202
VI.Othercomprehensiveincomeaftertaxation,net	82,705	408,388
(I)Othercomprehensiveincomeaftertaxationattributableto shareholdersoftheparentcompany,net	89,375	417,470
1.Othercomprehensiveincomethatcannotbesubsequently reclassifiedtoprofitorloss	-1,854	-22,641
(1)Changesarisingonremeasurementofdefinedbenefit plans
(2)Othercomprehensiveincomeaccountedforusingtheequitymethodthatcannotbereclassifiedtoprofitor loss
(3)Changeinfairvalueofinvestmentsinotherequity instruments	-1,854	-22,641
(4)Changein fairvalue ofown creditrisk of theCompany
2.Othercomprehensiveincomethatwillbereclassifiedto profitorloss	91,229	440,111
(1)Other comprehensive income accounted for using the equitymethodthatmaybereclassifiedtoprofitorloss
(2)Change infair value of otherdebt investments	-1,945	5,591
(3)Amountoffinancialassetsreclassifiedintoother comprehensiveincome
(4)Provisionsforcreditimpairmentofotherdebt investments	-2,387	-2,101
(5)Reserveforcashflowhedging
(6)Exchangedifferenceontranslationoffinancialstatements inforeigncurrency	95,561	436,621
(7)Others

Items	Firstquarter of2021	Firstquarter of2020
(II)Othercomprehensiveincomeaftertaxationattributabletonon- controllinginterests,net	-6,670	-9,082
VII.Totalcomprehensiveincome	-6,864,345	-5,208,024
(I)Totalcomprehensiveincomeattributabletoshareholdersofthe Company	-6,118,415	-4,387,740
(II)Totalcomprehensiveincomeattributabletonon-controlling interests	-745,930	-820,284
VIII.Earningspershare:
(I)Basicearnings pershare (RMBper share)	-0.45	-0.35
(II)Dilutedearningspershare(RMBpershare)	N/A	N/A

For business combination under common control during the Period, the net profit of merged

  party before the business combination is Nil, and the net profit of the merged party for

  the last period is Nil.

PersoninchargeoftheCompany:Mr.SongZhiyong

Personinchargeofaccountingfunction:Mr.XiaoFeng

Personinchargeofaccountingdepartment:Mr.ZhanZhong

INCOME STATEMENT OF THE PARENT COMPANY

January to March 2021

Prepared by Air China Limited

Unit: RMB'000 (Unaudited)

Items	Firstquarter of2021	Firstquarter of2020
I.Revenuefromoperations	9,503,315	12,074,346
Less:Operatingcosts	13,081,239	13,176,995
Taxesandotherlevies	32,236	17,135
Sellingexpenses	787,775	733,625
Generalandadministrativeexpenses	508,679	367,534
R&Dexpenses	12,708	36,263
Finance expenses	1,122,009	1,674,339
Including:Interestexpenses	962,317	920,183
Interestincome	21,290	22,643
Add:Otherincome	511,239	559,303
Investmentincome(lossisrepresentedby"-"sign)	-472,271	-315,809
Including:Shareofprofitsofassociatesandjointventures	-472,562	-315,809
Derecognitionofgainsonfinancialassets measuredatamortisedcost
Gainsfromnetexposuretohedging(lossisrepresentedby "-"sign)
Gainsfromchangesinfairvalue(lossisrepresentedby"-" sign)
Impairmentlossofcredit(lossisrepresentedby"-"sign)
Impairmentlossofassets(lossisrepresentedby"-"sign)
Gainsfromdisposalofassets(lossisrepresentedby"-"sign)	-949	93
II.Profitfromoperations(lossisrepresentedby"-"sign)	-6,003,312	-3,687,958
Add:Non-operatingincome	2,352	3,134
Less:Non-operatingexpenses	289	15,428
III.Totalprofit(totallossisrepresentedby"-"sign)	-6,001,249	-3,700,252
Less: Income tax expenses	-1,307,711	-779,658
IV.Netprofit(netlossisrepresentedby"-"sign)	-4,693,538	-2,920,594
(I) Net profit from continuing operations (net loss is represented by "-" sign)	-4,693,538	-2,920,594
(II) Net profit from discontinued operations (net loss is represented by "-" sign)

Items	Firstquarter of2021	Firstquarter of2020
V.Othercomprehensiveincomeaftertaxation,net
(I)Othercomprehensiveincomethatcannotbesubsequently reclassifiedtoprofitorloss
1.Changesarisingonremeasurementofdefinedbenefitplans
2.Othercomprehensiveincomeaccountedforusingtheequity methodthatcannotbereclassifiedtoprofitorloss
3.Changeinfairvalueofinvestmentsinotherequity instruments
4. Change in fair value of own credit risks of the Company
(II)Othercomprehensiveincomethatwillbereclassifiedtoprofit orloss
1.Othercomprehensiveincomeaccountedforusingtheequity methodthatmaybereclassifiedtoprofitorloss
2.Change in fair valueof other debt investments
3.Amountoffinancialassetsreclassifiedintoother comprehensiveincome
4.Provisionsforcreditimpairmentofotherdebtinvestments
5. Reserveforcash flowhedging
6.Exchangedifferenceontranslationoffinancialstatementsin foreigncurrency
7.Others
VI.Totalcomprehensiveincome	-4,693,538	-2,920,594
VII.Earningspershare:
(I)Basicearnings pershare (RMBper share)
(II)Dilutedearningspershare(RMBpershare)

PersoninchargeoftheCompany:Mr.SongZhiyong

Personinchargeofaccountingfunction:Mr.XiaoFeng

Personinchargeofaccountingdepartment:Mr.ZhanZhong

CONSOLIDATED CASH FLOW STATEMENT

January to March 2021

Prepared by Air China Limited

Unit: RMB'000 (Unaudited)

Items	Firstquarter of2021	Firstquarter of2020
I.Cashflowsfromoperatingactivities:
Cashreceivedfromsalesofgoodsandprovisionofservices	14,380,541	11,619,620
Netincreaseindepositsfromclientsandplacementsfrombanks
Netincreaseinborrowingsfromcentralbank
Netincreaseinborrowingsfromotherfinancialinstitutions
Cashreceivedfrompremiumsoforiginalinsurancecontracts
Netcashreceiptfromreinsuranceoperations
Netincreaseinreserveoftheinsuredandinvestment
Cashreceivedfrominterest,feesandcommission
Netincreaseincontributionsreceived
Netincreaseincashfromrepurchaseoperations
Netcashreceiptfromsecuritiestradingasagent
Refundoftaxesandlevies	4,636	4,297
Othercashreceivedrelatingtooperatingactivities	1,624,412	2,374,432
Subtotalofcashinflowsofoperatingactivities	16,009,589	13,998,349
Cashpaidforgoodspurchasedandservicesreceived	8,587,763	12,857,493
Netincrease in loans and advances toclients
Netincreaseindepositsincentralbank andotherbanks
Cashpaidinrespectofclaimsunderoriginalinsurancecontracts
Netincreaseincontributionsmade
Cashpaidforinterest,feesandcommissions
Cashpaidfor bonuspaid oninsurancepolicy
Cash paidtooronbehalfofemployees	6,584,075	7,044,573
Taxesandleviespaid	266,475	618,697
Othercashpaidrelatingtooperatingactivities	1,825,572	2,194,376
Subtotalofcashoutflowsfromoperatingactivities	17,263,885	22,715,139
Netcashflowsfromoperatingactivities	-1,254,296	-8,716,790
II.Cashflowsfrominvestingactivities:
Cashreceivedfromsaleandredemptionofinvestments	722,905	394,656
Cashreceivedfrominvestmentincome	291	11,570
Netcashproceedsfromdisposaloffixedassets,intangibleassets andotherlong-termassets	8,251	8,022

Items	Firstquarter of2021	Firstquarter of2020
Netcashproceedsfromdisposalofsubsidiariesandotherbusiness units
Othercashreceivedrelatingtoinvestingactivities	31,118	15,901
Subtotalofcashinflowsfrominvestingactivities	762,565	430,149
Cashpaidforpurchaseandconstructionoffixedassets,intangible assetsandotherlong-termassets	562,481	2,811,387
Cash paidfor investments	50,000
Netincrease insecuredloans
Netcashpaymentsforacquisitionofsubsidiariesandotherbusiness units
Othercashpaidrelatingtoinvestingactivities	6,758	1,631
Subtotalofcashoutflowsfrominvestingactivities	619,239	2,813,018
Netcashflowsfrominvestingactivities	143,326	-2,382,869
III.Cashflowsfromfinancingactivities:
Cashreceivedfromissuanceofdebentures	700,000	9,000,000
Cashreceivedfromcapitalinjection	490,148
Including:Cashreceivedfromcapitalinjectionofminority shareholdersinsubsidiaries	490,148
Cashreceivedfromborrowings	13,650,876	15,321,878
Othercashreceivedrelatingtofinancingactivities
Subtotalofcashinflowsfromfinancingactivities	14,841,024	24,321,878
Cashpaidforrepaymentofborrowings	4,219,254	1,971,740
Cashpaidforrepaymentofdebentures	1,000,000	5,300,000
Cashpaidfordistributionofdividends,profitsorpaymentof interestexpenses	1,564,579	1,462,255
Including:Dividendsandprofitspaidtominorityshareholdersby subsidiaries
Othercashpaidrelatingtofinancingactivities	3,616,317	2,749,273
Subtotalofcashoutflowsfromfinancingactivities	10,400,150	11,483,268
Netcashflowsfromfinancingactivities	4,440,874	12,838,610
IV.Effectofexchangeratechangesoncashandcashequivalents	23,666	24,514
V.Netincreaseincashandcashequivalents	3,353,570	1,763,465
Add:Balanceofcashandcashequivalentsasatthebeginningof thePeriod	5,837,998	8,935,282
VI.Balanceofcashandcashequivalentsasattheendofthe Period	9,191,568	10,698,747

Person in charge of the Company: Mr. Song Zhiyong

  Person in charge of accounting function: Mr. Xiao Feng

Person in charge of accounting department: Mr. Zhan Zhong

CASH FLOW STATEMENT OF THE PARENT COMPANY

January to March 2021

Prepared by Air China Limited

Unit: RMB'000 (Unaudited)

Items	Firstquarter of2021	Firstquarter of2020
I.Cashflowsfromoperatingactivities:
Cashreceivedfromsalesofgoodsandprovisionofservices	8,896,718	6,952,959
Refundoftaxesandlevies
Othercashreceivedrelatingtooperatingactivities	1,189,980	968,627
Subtotalofcashinflowsofoperatingactivities	10,086,698	7,921,586
Cashpaidforgoodspurchasedandservicesreceived	6,670,049	9,349,929
Cash paidtooronbehalfofemployees	3,665,393	3,916,282
Taxesandleviespaid	68,839	527,452
Othercashpaidrelatingtooperatingactivities	831,692	630,850
Subtotalofcashoutflowsfromoperatingactivities	11,235,973	14,424,513
Netcashflowsfromoperatingactivities	-1,149,275	-6,502,927
II.Cashflowsfrominvestingactivities:
Cashreceivedfromsaleandredemptionofinvestments
Cashreceivedfrominvestmentincome	291
Netcashproceedsfromdisposaloffixedassets,intangibleassets andotherlong-termassets	1,204	2,271
Netcashproceedsfromdisposalofsubsidiariesandotherbusiness units
Othercashreceivedrelatingtoinvestingactivities	21,290	22,643
Subtotalofcashinflowsfrominvestingactivities	22,785	24,914
Cashpaidforpurchaseandconstructionoffixedassets,intangible assetsandotherlong-termassets	462,723	2,328,567
Cash paidfor investments
Netcashpaymentsforacquisitionofsubsidiariesandotherbusiness units
Othercashpaidrelatingtoinvestingactivities
Subtotalofcashoutflowsfrominvestingactivities	462,723	2,328,567
Netcashflowsfrominvestingactivities	-439,938	-2,303,653

Items	Firstquarter of2021	Firstquarter of2020
III.Cashflowsfromfinancingactivities:
Cashreceivedfromcapitalinjection
Cashreceivedfromissuanceofdebentures		3,000,000
Cashreceivedfromborrowings	9,050,000	10,566,500
Othercashreceivedrelatingtofinancingactivities
Subtotalofcashinflowsfromfinancingactivities	9,050,000	13,566,500
Cashpaidforrepaymentofborrowings	3,615,542	1,558,821
Cashpaidfordistributionofdividends,profitsorpaymentof interestexpenses	1,058,650	996,478
Othercashpaidrelatingtofinancingactivities	2,366,299	2,060,798
Subtotalofcashoutflowsfromfinancingactivities	7,040,491	4,616,097
Netcashflowsfromfinancingactivities	2,009,509	8,950,403
IV.Effectofexchangeratechangesoncashandcashequivalents	22,114	-5,466
V.Netincreaseincashandcashequivalents	442,410	138,357
Add:Balanceofcashandcashequivalentsasatthebeginningof thePeriod	4,609,130	6,751,816
VI.Balanceofcashandcashequivalentsasattheendofthe Period	5,051,540	6,890,173

PersoninchargeoftheCompany:Mr.SongZhiyong

Personinchargeofaccountingfunction:Mr.XiaoFeng

Personinchargeofaccountingdepartment:Mr.ZhanZhong

4.2  Particulars in relation to adjustments made to the financial statements as at the

  beginning of the year for the initial implementation of New Lease Standard since 2021

Applicable    Not Applicable

4.3  Description of the retrospective adjustment to the comparable figures for the previous

  period due to the initial implementation of the New Lease Standard since 2021

Applicable  Not Applicable

4.4  Auditor's Report

Applicable  Not Applicable

By Order of the Board 

Air China Limited

  Zhou Feng

Company Secretary

Beijing, the PRC, 29 April 2021

As at the date of this announcement, the directors of the Company are Mr. Song Zhiyong, Mr. Feng

  Gang, Mr. Patrick Healy, Mr. Xue Yasong, Mr. Duan Hongyi*, Mr. Stanley Hui Hon-chung* and 

Mr. Li Dajin*.

* Independent non-executive director of the Company

 

END

 

 

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