Formal Notice - First Quarterly Report 2014

RNS Number : 8698F

Air China Ld

30 April 2014

 



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.

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 2014

This announcement is made pursuant to 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") hereby announces that a meeting of the Board was held on 29 April 2014 and the Board passed the resolution approving the quarterly report of the Company for the first quarter of 2014 prepared in accordance with the PRC Accounting Standards.

1.       IMPORTANT NOTICE

1.1     The Board, the supervisory committee, as well as the directors, supervisors and senior management of the Company hereby warrant that there are no false representations, misleading statements or material omissions in this report, and jointly and severally accept full responsibility for the truthfulness, accuracy and completeness of the contents of this quarterly report.

1.2     All of the directors of the Company attended the Board meeting to consider the first quarterly report.

1.3     The legal representative of the Company                        Cai Jianjiang

Person in charge of accounting function                          Fan Cheng

Person in charge of accounting department                     Xiao Feng

 (accounting superintendent)

Cai Jianjiang (legal representative of the Company), Fan Cheng (person in charge of accounting function), and Xiao Feng (person in charge of accounting department (accounting superintendent)) hereby jointly declare that the financial statements set out in this quarterly report are true, accurate and complete.

1.4     The financial statements set out in the first quarterly report of the Company are not audited.

2.       MAJOR FINANCIAL DATA OF THE COMPANY AND CHANGES IN SHAREHOLERS

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	205,636,613	205,361,883	0.13
Net asset attributable to shareholders  of the listed company	54,421,183	54,154,190	0.49
	For the period from the beginning of the year to the end of the reporting period (January to March)	For the corresponding period of the previous year (January to March)	Increase/decrease as compared to the corresponding period of the previous year
			(%)
Net cash flows from operating  activities	3,730,780	3,449,671	8.15
	For the period from the beginning of the year to the end of the reporting period	For the corresponding period of the previous year	Increase/decrease as compared to the corresponding period of the previous year
			(%)
Revenue	24,418,843	22,719,031	7.48
Net profit attributable to shareholders  of the listed company	92,708	248,592	-62.71
Net profit attributable to shareholders  of the listed company after deducting  non-recurring profits and losses	-17,468	155,246	-111.25
Weighted average return on  net assets (%)	0.17	0.49	Decrease by 0.32 ppt
Basic earnings per share (RMB)	0.01	0.02	-50.00
Diluted earnings per share (RMB)	N/A	N/A	N/A
Basic earnings per share after  deducting non-recurring  profits and losses (RMB)	-0.001	0.013	-107.69
Weighted average return on net assets  after deducting non-recurring  profits and losses (%)	-0.03	0.30	Decrease by 0.33 ppt

Non-recurring profits and losses:

Unit: RMB'000

Items	Amounts for the period (January to March)
Gains/(losses) from disposal of non-current assets	-282
Government grants included in the profits and losses  for the current period (except for those that are closely  related to the Company's normal operating business and  qualified under national policy to continually receive  certain standard amount and quantities)	213,850
Gain/(loss) 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)	-935
Reversal of provision for impairment of receivables which  are individually tested for impairment	341
Other non-operating income and expenses not covered above	2,527
Effect of income tax	-52,562
Effect on minority interest (after tax)	-52,763
Total	110,176

2.2     Total number of shareholders, the top 10 shareholders and the top 10 shareholders not subject to selling restrictions as at the end of the reporting period

Total number of shareholders

278,030 (including 4,453 registered H Share shareholders)

Particulars of the top 10 shareholders                            Unit: share
Name of shareholder	Nature of shareholder	Shareholding percentage	Total number of shares held	Shares held subject to selling restrictions	Number of shares pledged or frozen
		(%)
China National Aviation Holding Company	State	41.48	5,427,546,093	192,796,331	Frozen 127,445,536
Cathay Pacific Airways Limited	Foreign legal person	20.13	2,633,725,455		Nil
HKSCC NOMINEES LIMITED	Foreign legal person	12.83	1,678,230,075		Unknown
China National Aviation Corporation (Group) Limited	Foreign legal person	11.89	1,556,334,920		Frozen 36,454,464
China National Aviation Fuel Group Corporation	State-owned legal person	0.66	86,300,000		Unknown
Sinotrans Air Transportation Development Co., Ltd.	State-owned legal person	0.58	75,800,000		Unknown
New China Life Insurance Company Ltd. - Bonus - Personal Bonus - 018L - FH002 Shanghai	Unknown	0.52	68,378,218		Unknown
Industrial and Commercial Bank of China - Baoying Coastal Area Growth Stock Fund	Unknown	0.17	22,155,420		Unknown
China Merchants Securities Co., Ltd.	Unknown	0.14	18,649,134		Unknown
National Social Securities Fund110 Portfolio	Unknown	0.10	13,508,135		Unknown

Particulars of the top 10 shareholders not subject to selling restrictions            Unit: share
Name of shareholder (full name)	Number of tradable shares held not subject to selling restrictions at the end of the period	Class and number of shares
China National Aviation Holding Company	5,234,749,762	RMB ordinary shares 5,234,749,762
Cathay Pacific Airways Limited	2,633,725,455	Overseas listed foreign shares 2,633,725,455
HKSCC NOMINEES LIMITED	1,678,230,075	Overseas listed foreign shares 1,678,230,075
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	86,300,000	RMB ordinary shares 86,300,000
Sinotrans Air Transportation Development Co., Ltd.	75,800,000	RMB ordinary shares 75,800,000
New China Life Insurance Company Ltd. - Bonus - Personal Bonus - 018L - FH002 Shanghai	68,378,218	RMB ordinary shares 68,378,218
Industrial and Commercial Bank of China - Baoying Coastal Area Growth Stock Fund	22,155,420	RMB ordinary shares 22,155,420
China Merchants Securities Co., Ltd.	18,649,134	RMB ordinary shares 18,649,134
National Social Securities Fund110 Portfolio	13,508,135	RMB ordinary shares 13,508,135
Explanations 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 Company. Accordingly, China National Aviation Holding Company holds, directly and indirectly, 53.37% shares of the Company.

Notes:

1.         HKSCC NOMINEES LIMITED is a subsidiary of The Stock Exchange of Hong Kong Limited and its principal business is to act as nominee for and on behalf of other corporate shareholders or individual shareholders. The 1,678,230,075 H Shares held by it in the Company does 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) (《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 Company and China National Aviation Corporation (Group) Limited respectively, the controlling shareholder of the Company, are frozen at present.

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   □ Not applicable

The total profit of the Group for the first quarter of 2014 was RMB142 million, representing a decrease of 59.68% as compared to the corresponding period of the previous year; net profit attributable to the parent company was RMB93 million, representing a decrease of 62.71% as compared to the corresponding period of the previous year. The decrease in both total profit of the Group and net profit attributable to the parent company was mainly due to net foreign exchange losses arising from the depreciation of RMB, resulting in a decrease of profit by RMB803 million as compared to the corresponding period of the previous year. During the reporting period, operating profit after deducting foreign exchange gains and losses increased by RMB515 million as compared to the corresponding period of the previous year, mainly due to the combined effects of improved utilization efficiency of transportation capacity, effective cost controls, as well as lower fuel price compared to that of the corresponding period of the previous year.

Unit: RMB'000

Items in consolidated balance sheet	As of 31 March 2014	As of 31 December 2013	Amount of Change	Percentage	Reasons for Change
Fixed assets held  for sale	632,683	994,413	-361,730	-36.38%	Decrease in the number of aircrafts held for sale at the end of this reporting period.
Domestic air traffic  liabilities	1,104,124	1,785,306	-681,182	-38.15%	Decrease in outstanding air traffic tickets at the end of this reporting period.

Items in consolidated income statement	For the period from the beginning of the year to the end of the reporting period (January-March)	For the corresponding period of the previous year (January-March)	Amount of Change	Percentage	Reasons for Change
Business taxes and  other levies	39,761	70,082	-30,321	-43.27%	Mainly due to timing differences for the implementation of value-added tax to replace business tax in various regions leading to different taxation policies as compared to the corresponding period of the previous year.
Finance costs	1,311,394	462,562	848,832	183.51%	Due to net foreign exchange loss recognized during the reporting period as a result of the appreciation of US$ against RMB, as compared to net foreign exchange gain of the corresponding period of the previous year.
Investment income	44,141	73,595	-29,454	-40.02%	Decrease in gains on investments by our joint ventures and associated companies recognized in this reporting period as compared to the corresponding period of the previous year.
Non-operating income	223,708	154,491	69,217	44.80%	Increase in our subsidy income in this reporting period as compared to the same period of last year.
Income tax expenses	48,987	99,187	-50,200	-50.61%	Decrease in income tax due to the decrease in taxable income in this reporting period.

Items in consolidated statement of cash flows	For the period from the beginning of the year to the end of the reporting period (January-March)	For the corresponding period of the previous year (January-March)	Amount of Change	Percentage	Reasons for Change
Net cash proceeds from disposal of fixed assets, intangible assets and other long- term assets	268,674	27,668	241,006	871.06%	Increase in aircraft disposals completed in this reporting period as compared to the corresponding period of the previous year.
Other cash received relating to investment activities	49,844	71,265	-21,421	-30.06%	Decrease in term deposits in this reporting period as compared to the corresponding period of the previous year.
Cash paid for investments	-	95,803	-95,803	-100.00%	Payment of investment amounts based on the schedule of our investments in two enterprises in the corresponding period of the previous year.
Cash received from capital injection	-	1,046,740	-1,046,740	-100.00%	Non-public issuance by the Company of its ordinary shares (A shares) to the parent company in the corresponding period of the previous year.
Cash paid for repayment of borrowings	11,337,256	4,640,837	6,696,419	144.29%	Increase in repayments of mature debts in this reporting period as compared to the corresponding period of the previous year.
Cash paid for distribution of dividends, profits or payment of interest expenses	791,374	603,186	188,188	31.20%	Increase in interest paid in this reporting period.

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

□ Applicable   √ Not applicable

3.3     Performance of undertakings given by the Company and the shareholders holding more than 5% of the shares of the Company

√ Applicable   □ Not applicable

Background of undertakings	Type of undertakings	The party making the undertakings	Contents of undertakings	Date and duration of undertakings	Is there performance duration?	Are they timely and strictly performed?
Undertakings in relation to refinancing	Related party transactions	CNAHC	China National Aviation Holding Company ("CNAHC") made the undertakings in respect of matters relating to deposits and loans business between the Company and China National Aviation Finance Co., Ltd. ("CNAF"), a subsidiary of CNAHC, as follows: (1)   CNAF is a duly incorporated enterprise group finance company pursuant to the Administrative Measures for Enterprise Groups Finance Companies and other relevant rules and regulations, and sets up sound internal control and financial accounting systems. The operations of CNAF are in compliance with the requirements of the relevant rules and regulations and it is running very well, therefore the Company's deposits placed with and loans from CNAF are definitely secure. In the future, CNAF will continue to operate in strict compliance with the requirements of the relevant rules and regulations;	The undertakings were made on 12 August 2010	No	Yes
			(2)   As the Company is independent from CNAHC in respect of its assets, businesses, personnel, finance and organizations, CNAHC will continue to ensure independence of the Company and fully respect the rights of the Company to determine its own operations. The deposits and loans business activities between the Company and CNAF are decided by the Company in its sole discretion in accordance with the relevant regulatory requirements and actual operating needs, and the internal procedures are to be performed according to the relevant laws and regulations and the articles of association of the Company. CNAHC will not intervene the decisions of the Company; (3)   According to the Administrative Measures for Enterprise Groups Finance Companies, in the event of crisis involving payment difficulties of CNAF, CNAHC will increase the capital of CNAF to the extent required for resolving such payment difficulties, so as to ensure the security of the Company's deposits placed with CNAF.

Background of undertakings	Type of undertakings	The party making the undertakings	Contents of undertakings	Date and duration of undertakings	Is there performance duration?	Are they timely and strictly performed?
Undertakings in relation to refinancing	Rselated party transactions	The Company	Under the framework of the financial services agreement signed by the Company and CNAF on 20 November 2012, it is assured that the maximum daily balance of deposits placed by the Company and its holding subsidiaries with CNAF shall be less than the maximum daily balance of loans and other credit services granted by CNAF to the Company and its holding subsidiaries, and the average daily balance of deposits placed by the Company and its holding subsidiaries with CNAF in each accounting year shall be less than the average daily balance of loans and other credit services actually granted by CNAF to the Company and its holding subsidiaries in the relevant year.	The undertakings were made on 17 October 2012 and shall be fulfilled on or before 31 December 2015	Yes	Yes
Other undertakings	Shares sale restriction	CNAHC	On 20 December 2013, CNAHC increased its shareholdings in the Company by 760,000 A shares via the trading system of the Shanghai Stock Exchange, representing 0.01% of the total issued share capital of the Company (the "First Share Acquisition"). CNAHC intends to continue to increase its shareholdings in the Company, either in its own name or through parties acting in concert with it, via the secondary market within 12 months from 20 December 2013 up to an aggregated amount not exceeding 2% of the total issued share capital of the Company (including the increased shareholdings in the First Share Acquisition). CNAHC undertakes that it will not sell any shares it holds in the Company during the period of the implementation of the acquisition plan and within the statutory period.	The undertakings were made on 21 December 2013 and shall be fulfilled on or before 19 June 2015	Yes	Yes

3.4     Warning in respect of forecast of possible net loss from the beginning of the year to the end of the next reporting period or warning in respect of any significant changes in net profit as compared with that of the corresponding period of previous year and the underlying reasons

□ Applicable   √ Not applicable

Air China Limited

Legal representative: Cai Jianjiang

29 April 2014

4        APPENDIX

Consolidated Balance Sheet

31 March 2014

Prepared by Air China Limited

Unit: RMB'000

Items	Balance at the end of the period	Balance at the beginning of the year
CURRENT ASSETS:
Cash and bank balances	11,095,064	15,507,677
Financial assets designated at fair value   through profit or loss	11,909	11,350
Provisions on payables
Contributions made
Financial assets held for trading
Bills receivable	157	131
Accounts receivable	3,250,330	3,100,584
Prepayments	700,266	679,962
Premium receivable
Receivables on reinsurance
Provisions for reinsurance contracts
Interest receivable
Dividend receivable
Other receivables	3,192,435	2,849,938
Purchase of financial assets resold
Inventories	1,053,831	1,044,617
Non-current assets due within a year
Fixed assets held for sale	632,683	994,413
Other current assets	1,248,851	1,236,939
Total current assets	21,185,526	25,425,611

Items	Balance at the end of the period	Balance at the beginning of the year
NON-CURRENT ASSETS:
Loans and advances
Available-for-sale financial assets
Held-to-maturity investments
Long term receivables	482,476	451,404
Long term equity investments	16,161,031	15,987,808
Investment properties	243,078	246,291
Fixed assets	127,331,460	123,988,709
Construction in progress	32,690,136	31,772,505
Construction materials
Disposal of fixed assets
Biological assets for production
Oil and gas assets
Intangible assets	2,880,055	2,864,299
Development expenses
Goodwill	1,102,185	1,102,185
Long term deferred expenses	352,232	363,536
Deferred tax assets	3,208,434	3,159,535
Other non-current assets
Total non-current assets	184,451,087	179,936,272
Total assets	205,636,613	205,361,883

Items	Balance at the end of the period	Balance at the beginning of the year
CURRENT LIABILITIES:
Short-term loans	20,066,755	22,821,013
Short-term bonds payable	700,000	700,000
Financial liabilities designated at fair value   through profit or loss	20,223	24,070
Borrowings from central bank
Deposits from clients and placements from other banks
Contributions received
Financial liabilities held for trading
Bills payable
Accounts payable	13,065,310	11,828,973
Domestic air traffic liabilities	1,104,124	1,785,306
International air traffic liabilities	2,724,928	2,676,142
Receipts in advance	170,831	133,112
Sale of financial assets repurchased
Fees and commissions payable
Salaries and wages payable	1,714,073	2,239,516
Taxes payable	527,043	711,649
Interest payable	718,254	712,165
Dividend payable
Other payables	5,216,141	5,505,080
Amounts payable on reinsurance
Reserves on insurance contracts
Brokerage payable
Underwriting fees payable
Non-current liabilities due within a year	17,398,356	20,507,235
Other current liabilities
Total current liabilities	63,426,038	69,644,261

Items	Balance at the end of the period	Balance at the beginning of the year
NON-CURRENT LIABILITIES:
Long-term borrowings	27,628,235	23,266,406
Debentures payable	19,000,000	19,000,000
Long-term payables	3,448,572	3,376,552
Obligations under finance leases payable	27,465,419	25,972,715
Specific payables
Estimated liabilities	376,601	376,601
Deferred income	3,944,432	3,767,948
Deferred income tax liabilities	2,133,206	2,014,407
Other non-current liabilities
Total non-current liabilities	83,996,465	77,774,629
Total liabilities	147,422,503	147,418,890
OWNER'S EQUITY (OR SHAREHOLDERS' EQUITY):
Issued capital	13,084,751	13,084,751
Capital reserve	18,318,568	18,318,568
Less: Treasury shares
Specific reserves
Surplus reserves	5,233,245	5,233,245
General risk provisions
Profit available for appropriation	21,338,072	21,245,364
Foreign exchange translation reserve	-3,553,453	-3,727,738
Total owner's equity attributable to shareholders of   the Company	54,421,183	54,154,190
Minority interests	3,792,927	3,788,803
Total owner's equity	58,214,110	57,942,993
Total liabilities and owner's equity	205,636,613	205,361,883

Legal representative of the Company: Cai Jianjiang

Person in charge of accounting function: Fan Cheng

Person in charge of accounting department: Xiao Feng

BALANCE SHEET OF THE PARENT COMPANY

31 March 2014

Prepared by Air China Limited

Unit: RMB'000

Items	Balance at the end of the period	Balance at the beginning of the year
CURRENT ASSETS:
Cash and bank balances	2,708,680	6,587,506
Held-for-trading financial assets
Bills receivable
Accounts receivable	3,312,710	3,432,286
Prepayments	329,681	394,823
Interest receivable
Dividend receivable
Other receivables	3,029,677	2,841,241
Inventories	642,746	619,845
Fixed assets held for sale	262,075	577,627
Entrusted loans	1,020,000
Non-current assets due within a year
Other current assets	1,003,336	1,022,022
Total current assets	12,308,905	15,475,350
NON-CURRENT ASSETS:
Available-for-sale financial assets
Held-to-maturity investments
Long-term receivables	287,667	260,921
Long-term equity investments	22,734,305	22,686,595
Investment properties
Fixed assets	93,066,163	92,051,664
Construction in progress	20,496,744	20,292,144
Construction materials
Disposal of fixed assets
Biological assets for production
Oil and gas assets
Intangible assets	2,143,086	2,121,602
Development expenses
Goodwill
Long-term deferred expenses	122,612	127,045
Deferred income tax assets	2,102,909	2,102,909
Other non-current assets
Total non-current assets	140,953,486	139,642,880
Total assets	153,262,391	155,118,230

Items	Balance at the end of the period	Balance at the beginning of the year
CURRENT LIABILITIES:
Short-term loans	11,649,133	11,681,204
Financial liabilities designated at fair value   through profit or loss		3,819
Held-for-trading financial liabilities
Bills payable
Accounts payable	9,194,095	8,548,547
Domestic air traffic liabilities	888,264	1,297,248
International air traffic liabilities	2,463,422	2,402,980
Receipts in advance	116,084	78,145
Salaries and wages payable	813,362	1,192,412
Taxes payable	215,433	368,760
Interest payable	603,115	631,840
Dividend payable
Other payables	1,578,479	1,897,005
Non-current liabilities due within a year	14,464,510	17,661,914
Other current liabilities
Total current liabilities	41,985,897	45,763,874
NON-CURRENT LIABILITIES:
Long-term borrowings	12,030,515	10,937,026
Debentures payable	19,000,000	19,000,000
Long-term payables	1,656,739	1,656,739
Obligations under finance leases payable	24,040,165	23,444,512
Specific payables
Estimated liabilities	34,942	34,942
Deferred income	2,757,202	2,621,292
Deferred income tax liabilities	244,745	244,745
Other non-current liabilities
Total non-current liabilities	59,764,308	57,939,256
Total liabilities	101,750,205	103,703,130
OWNER'S EQUITY (OR SHAREHOLDER'S EQUITY):
Issued capital	13,084,751	13,084,751
Capital reserve	20,963,029	20,963,029
Less: Treasury shares
Specific reserves
Surplus reserves	5,233,245	5,233,245
General risk provisions
Profit available for appropriation	12,231,161	12,134,075
Total owner's equity (or shareholders' equity)	51,512,186	51,415,100
Total liabilities and owner's equity   (or shareholders' equity)	153,262,391	155,118,230

Legal representative of the Company: Cai Jianjiang

Person in charge of accounting function: Fan Cheng

Person in charge of accounting department: Xiao Feng

Consolidated Income Statement

January to March 2014

Unit: RMB'000

Items	Amounts for the period	Amounts for the corresponding period of the previous year
I.       Revenue from operations	24,418,843	22,719,031
Including:     Operating income	24,418,843	22,719,031
Interest income
Premium earned
Fees and commission income
II.      Total operating costs	24,537,159	22,575,438
Including:     Operating costs	20,732,739	19,676,482
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
Business taxes and other levies	39,761	70,082
Selling expenses	1,721,119	1,643,964
Administrative expenses	732,407	722,258
Finance expenses	1,311,394	462,562
Impairment loss of assets	-261	90
Add:  Gains from changes in fair value  (loss is represented by "-" sign)	-204	-4,011
Investment income (loss is represented  by "-" sign)	44,141	73,595
Including: Gains arising from investments in   associated companies and   joint ventures	43,786	73,682
Exchange gains (loss is represented by "-" sign)

Items	Amounts for the period	Amounts for the corresponding period of the previous year
III.    Profit from operations (loss is represented  by "-" sign)	-74,379	213,177
Add:  Non-operating income	223,708	154,491
Less:  Non-operating expenses	7,613	16,216
Including: Loss arising from disposal of   non-current assets	480	1,859
IV.    Total profit (total loss is represented  by "-" sign)	141,716	351,452
Less:  Income tax expenses	48,987	99,187
V.      Net profit (net loss is represented by "-" sign)	92,729	252,265
Net profits attributable to shareholders of  the Company	92,708	248,592
Gains or losses attributable to minority interests	21	3,673
VI.    Earnings per share:
(I)      Basic	0.01	0.02
(II)     Diluted	N/A	N/A
VII.   Other consolidated gains	178,388	-79,145
VIII. Total consolidated gains	271,117	173,120
Total consolidated gains attributable to  shareholders of the Company	266,993	171,116
Total consolidated gains attributable to  minority interests	4,124	2,004

Legal representative of the Company: Cai Jianjiang

Person in charge of accounting function: Fan Cheng

Person in charge of accounting department: Xiao Feng

Income Statement of the Parent Company

January to March 2014

Unit: RMB'000

Items	Amounts for the period	Amounts for the corresponding period of the previous year
I.       Revenue from operations	17,066,804	16,011,358
Less:  Operating cost	14,389,650	13,935,926
Business taxes and other levies	22,109	31,336
Selling expenses	1,307,449	1,292,893
Administrative expenses	376,729	378,586
Finance expenses	971,036	302,151
Impairment loss of assets
Add:  Gains from changes in fair value  (loss is represented by "-"sign)	0	1,027
Investment income (loss is represented  by "-" sign)	47,710	57,657
Including: Gains arising from investments   in associated companies and joint   ventures	47,710	57,657
II.      Profit from operations (loss is represented  by "-" sign)	47,541	129,150
Add:  Non-operating income	62,767	113,665
Less:  Non-operating expenses	6,357	11,410
Including: Loss arising from disposal of  non-current assets	77	1,203
III.    Total profit (total loss is represented by "-" sign)	103,951	231,405
Less:  Income tax expenses	6,865	34,578
IV.    Net profit (net loss is represented by "-" sign)	97,086	196,827
V.      Earnings per share:
(I)      Basic
(II)     Diluted
VI.    Other consolidated gains		156
VII.   Total consolidated gains	97,086	196,983

Legal representative of the Company: Cai Jianjiang

Person in charge of accounting function: Fan Cheng

Person in charge of accounting department: Xiao Feng

Consolidated Cash Flow Statement

January to March 2014

Unit: RMB'000

Items	Amounts for the period	Amounts for the corresponding period of the previous year
I.       Cash flows from operating activities:
Cash received from sales of goods and  provision of services	25,117,741	23,664,318
Net increase in deposits from clients and  placements from other banks
Net increase in borrowings from central bank
Net increase in contributions made to  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 held-for-trading  financial assets
Cash received from interests, fees and commission
Net increase in contributions received
Net increase in cash from repurchase operations
Refund of tax and levy
Other cash received relating to operating activities	726,794	601,233
Subtotal of cash inflows of operating activities	25,844,535	24,265,551
Cash paid for goods purchased and services received	16,038,164	14,644,136
Net increase in loans and advances to clients
Net increase in deposits in central bank and  to 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	3,735,003	3,481,693
Tax and levies paid	571,584	750,831
Other cash paid relating to operating activities	1,769,004	1,939,220
Subtotal of cash outflows from operating activities	22,113,755	20,815,880
Net cash flows from operating activities	3,730,780	3,449,671

Items	Amounts for the period	Amounts for the corresponding period of the previous year
II.      Cash flows from investment activities:
Cash received from sales and redemption of investments
Cash received from investment income		3,510
Net cash proceeds from disposal of fixed assets,  intangible assets and other long-term assets	268,674	27,668
Net cash proceeds from disposal of subsidiaries and  other business units
Other cash received relating to investment activities	49,844	71,265
Subtotal of cash inflows from investment activities	318,518	102,443
Cash paid for purchase of fixed assets, intangible  assets and other long-term assets	4,845,716	7,308,229
Cash paid for investments		95,803
Net increase in secured loans	4,543	0
Net cash payments for acquisition of subsidiaries and  other business units
Other cash paid relating to investment activities	6,071	29,540
Subtotal of cash outflows from investment activities	4,856,330	7,433,572
Net cash flows from investment activities	-4,537,812	-7,331,129
III.    Cash flows from financing activities:
Cash received from capital injection		1,046,740
Including:     Cash received from capital injection of  minority shareholders in subsidiaries
Cash received from borrowings	9,403,891	11,183,044
Cash received from issue of debentures
Other cash received relating to financing activities
Subtotal of cash inflows from financing activities	9,403,891	12,229,784
Cash paid for repayment of borrowings	11,337,256	4,640,837
Cash paid for distribution of dividends,  profits or payment of interest expenses	791,374	603,186
Including:     Dividends and profit paid to minority  shareholders by subsidiaries
Other cash paid relating to financing activities	935,247	871,405
Subtotal of cash outflows from financing activities	13,063,877	6,115,428
Net cash flows from financing activities	-3,659,986	6,114,356

Items	Amounts for the period	Amounts for the corresponding period of the previous year
IV.    Effect of exchange rate changes on cash and  cash equivalents	49,862	27,018
V.      Net increase in cash and cash equivalents	-4,417,156	2,259,916
Add:  Balance of cash and cash equivalents as  at the beginning of the period	14,761,830	11,787,943
VI.    Balance of cash and cash equivalents as at  the end of the period	10,344,674	14,047,859

Legal representative of the Company: Cai Jianjiang

Person in charge of accounting function: Fan Cheng

Person in charge of accounting department: Xiao Feng

Cash Flow Statement of the Parent Company

January to March 2014

Unit: RMB'000

Items	Amounts for the period	Amounts for the corresponding period of the previous year
I.       Cash flows from operating activities:
Cash received from sales of goods and  provision of services	17,753,637	16,358,454
Refund of tax and levy
Other cash received relating to operating activities	433,294	422,431
Subtotal of cash inflows from operating activities	18,186,931	16,780,885
Cash paid for goods purchased and services received	10,796,400	10,514,808
Cash paid to and on behalf of employees	1,982,487	1,795,990
Taxes and levies paid	227,049	491,239
Other cash paid relating to operating activities	1,816,505	1,493,737
Subtotal of cash outflows from operating activities	14,822,441	14,295,774
Net cash flows from operating activities	3,364,490	2,485,111
II.      Cash flows from investment activities:
Cash received from sales and redemption of investments
Cash received from investment income		1,452
Net cash proceeds from disposal of fixed assets,  intangible assets and other long-term assets	267,848	25,680
Net cash proceeds from disposal of subsidiaries and  other business units
Other cash received relating to investment activities	46,213	20,016
Subtotal of cash inflows from investment activities	314,061	47,148
Cash paid for purchase of fixed assets, intangible assets  and other long-term assets	2,948,777	4,035,695
Cash paid for investments
Net cash payments for acquisition of subsidiaries and  other business units
Cash paid for entrusted loans	1,020,000
Other cash paid relating to investment activities	3,819	120,150
Subtotal of cash outflows from investment activities	3,972,596	4,155,845
Net cash flows from investment activities	-3,658,535	-4,108,697

Items	Amounts for the period	Amounts for the corresponding period of the previous year
III.    Cash flows from financing activities:
Cash received from capital injection		1,046,740
Cash received from borrowings	3,402,694	6,171,472
Cash received from issue of debentures
Other cash received relating to financing activities
Subtotal of cash inflows from financing activities	3,402,694	7,218,212
Cash paid for repayment of borrowings	5,659,422	2,521,960
Cash paid for distribution of dividends, profits or  payment of interest expenses	605,154	343,731
Other cash paid relating to financing activities	727,815	811,770
Subtotal of cash outflows from financing activities	6,992,391	3,677,461
Net cash flows from financing activities	-3,589,697	3,540,751
IV.    Effect of exchange rate changes on cash and  cash equivalents	4,915	27,225
V.      Net increase in cash and cash equivalents	-3,878,827	1,944,390
Add:  Balance of cash and cash equivalents as  at the beginning of the period	5,924,189	3,900,178
VI.    Balance of cash and cash equivalents as at the end  of the period	2,045,362	5,844,568

Legal representative of the Company: Cai Jianjiang

Person in charge of accounting function: Fan Cheng

Person in charge of accounting department: Xiao Feng

By order of the Board

Air China Limited

Rao Xinyu Tam Shuit Mui

Joint Company Secretaries

Beijing, the PRC, 29 April 2014

As at the date of this announcement, the directors of the Company are Mr. Cai Jianjiang, Ms. Wang Yinxiang, Mr. Cao Jianxiong, Mr. Sun Yude, Mr. Ian Sai Cheung Shiu, Mr. Fan Cheng, Mr. Fu Yang*, Mr. Yang Yuzhong*, Mr. Pan Xiaojiang* and Mr. Simon To Chi Keung*.

* Independent non-executive Director of the Company

 

END

 

 

QRFXBLBXZZFFBBZ