PAYMENT OF THE FINAL DIVIDENDS

RNS Number : 4860S

Air China Ld

09 July 2020

 

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)

PAYMENT OF THE FINAL DIVIDENDS

Reference is made to the announcement of Air China Limited (the "Company") dated 26 May 2020  in relation to the poll results of the 2019 annual general meeting of the Company (the "AGM"). The Company's shareholders approved the profit distribution proposal for the year of 2019 at the AGM.

The Company will pay a final dividend of RMB0.4442 per ten shares (tax inclusive) (equivalent to HK$0.4854 per ten shares) for the year ended 31 December 2019 (the "2019 Final Dividends"). For H shares, as set out in the notice of the Company dated 9 April 2020, the 2019 Final Dividends will be paid to holders of H shares of the Company whose names appear on the register of members of the Company on Saturday, 6 June 2020. Dividends payable to the Company's shareholders shall be denominated and declared in Renminbi.

PAYMENT OF THE FINAL DIVIDENDS

The board of directors of the Company (the "Board") wishes to inform the shareholders of the Company that details of the payment of the 2019 Final Dividends are as follows:

1.            Holders of H shares of the Company (excluding mainland investors who invest in the H  shares of the

         Company via the Shanghai-Hong Kong Stock Connect or Shenzhen-Hong Kong Stock Connect)

Dividends payable to the holders of H shares of  the Company (excluding mainland  investors  who invest in the H shares of the Company via the Shanghai-Hong Kong Stock Connect or Shenzhen-Hong Kong Stock Connect) shall be paid in Hong Kong dollars. The amount of Hong Kong dollars payable shall be calculated on the basis of the average of the middle rate of Renminbi to Hong Kong dollars as announced by the People's Bank of China for the calendar week prior to the declaration of the 2019 Final Dividends at the AGM (RMB0.9152 equivalent to HK$1.00).

The Company has appointed Bank of China (Hong Kong)  Trustees  Limited  as  the  receiving agent in Hong Kong (the "Receiving Agent") and will pay to such Receiving Agent the 2019  Final Dividends declared for payment to holders of H shares of  the  Company  (excluding  mainland investors who invest in the H shares of the Company via the Shanghai-Hong Kong Stock Connect or Shenzhen-Hong Kong Stock Connect). The  Receiving  Agent  will  pay  the  2019 Final Dividends on 16 July 2020. Relevant cheques will be dispatched to holders of H shares of the Company (excluding mainland investors who invest in the  H shares of the Company via the Shanghai-Hong Kong Stock Connect or Shenzhen-Hong Kong Stock Connect) entitled to receive such dividends by ordinary post at their own  risk  of  postal  errors  on  or  around 16 July 2020.  

2.            Mainland investors investing in the H shares of the Company via the Shanghai-Hong Kong Stock Connect or Shenzhen-Hong Kong Stock Connect

Dividends payable to mainland investors who invest in the H shares of the Company via the Shanghai-Hong Kong Stock Connect or Shenzhen-Hong Kong Stock Connect will be paid in Renminbi by China Securities Depository and Clearing Corporation Limited (the "CSDC") as entrusted by the Company. The Company will pay the 2019 Final Dividends to CSDC on 16 July 2020 for distribution thereafter.

3.  Holders of A shares of the Company

Dividends payable to the holders of A shares of the Company shall be paid in Renminbi. The  2019 Final Dividends will be paid on 16 July 2020 to holders of A shares of the Company registered with the Shanghai Branch of CSDC after the close of trading hours of the Shanghai  Stock Exchange in the afternoon on 15 July 2020.

TAXATION ON THE FINAL DIVIDENDS

In accordance with the "Enterprise Income Tax Law of the People' s Republic of China" 《 (  中 ) and the "Rules for the Implementation of the Enterprise Income Tax Law of the People's Republic of China" 《 (  中 ), both implemented on 1 January 2008 and the "Notice of the State Administration of Taxation on Issues Relevant to the Withholding  of  Enterprise  Income  Tax  on  Dividends  Paid  by  PRC  Enterprises  to  Offshore  Non-resident Enterprise Holders of H Shares" (Guo Shui Han [2008] No. 897) 《 (  關 外 H 股 ( 國 [2008]897 號 )) promulgated on 6 November 2008, the Company is obliged to withhold  and  pay  PRC  enterprise  income tax on behalf of non-resident enterprise shareholders at a tax rate of 10% from 2008 onwards when the Company distributes any dividends to non-resident enterprise shareholders whose  names appear  on  the  register  of  members  of  H  shares  of  the  Company.  As  such,  any  H  shares  of  the Company which are not registered in the name(s) of  individual  shareholder(s)  (which,  for  this  purpose, includes shares registered in the name of HKSCC Nominees  Limited,  other  nominees,  trustees, or other organisations or groups) shall be deemed to be H shares held by  non-resident  enterprise shareholder(s), and the PRC enterprise income tax shall be withheld from any dividends payable thereon. Non-resident enterprise shareholders may wish to apply for a tax refund (if any) in accordance with the relevant requirements, such as  tax agreements  (arrangements),  upon  receipt of any dividends.

In accordance with the "Circular on Certain Issues Concerning the Policies of Individual Income Tax" (Cai Shui Zi [1994] No. 020) 《 ( 關 ( 財 [1994]020 號 )) promulgated by the Ministry of Finance and the State Administration  of Taxation on 13 May 1994, overseas individuals  are,  as an interim measure, exempted from the PRC individual income  tax  for  dividends  or bonuses  received from foreign-invested enterprises. As the Company is a foreign invested enterprise, the Company will not withhold and pay the individual income tax on behalf of individual shareholders when  the  Company distributes the 2019 Final Dividends to individual shareholders whose names appear on the register  of  members of H shares of the Company.

Pursuant to the "Circular on Tax Policies Concerning the Pilot Programme of the Shanghai and Hong Kong Stock Market Trading Interconnection Mechanism" (Cai Shui [2014] No. 81) 《 (  關 於 滬 港 股 票 ( 財 [2014]81 號 ))  promulgated  on  31  October 2014 and the "Circular on Tax Policies Concerning the Pilot Programme of the Shenzhen and Hong Kong Stock Market Trading Interconnection Mechanism" (Cai Shui [2016] No. 127) 《 (  關 ( 財 [2016]127 號 )) promulgated on 5 November 2016:

• For mainland individual investors who invest in the H shares of the Company via the Shanghai- Hong Kong Stock Connect or Shenzhen-Hong Kong Stock Connect, the Company will withhold individual income tax at the rate of 20% in the distribution of the 2019 Final Dividends. Where individual investors have already paid foreign withholding taxes for such income, investors may apply to the competent tax authorities of CSDC for tax credit with valid tax withholding  certificates. For mainland securities investment funds that invest in  the  H  shares  of  the Company via the Shanghai-Hong Kong Stock Connect or Shenzhen-Hong Kong Stock Connect,  the Company will withhold individual income tax in the  distribution  of  the  2019  Final  Dividends pursuant to the foregoing provisions; and

•           For mainland corporate investors that invest in the H shares of the Company via the Shanghai- Hong Kong Stock Connect or Shenzhen-Hong Kong Stock Connect, the Company will not  withhold the income tax in the distribution of the 2019 Final Dividends and  the  mainland  corporate investors shall file the tax returns on their own.

Shareholders are recommended to consult their tax advisors for the tax effects in Mainland China,  Hong Kong and other countries (regions) regarding the ownership and disposal of H shares of the Company.

    By Order Of The Board

Air China Limited

Zhou Feng   Huen Ho Yin

Joint Company Secretaries

Beijing, the PRC, 8 July 2020

As at the date of this announcement, the directors of the Company are Mr. Cai Jianjiang, Mr. Song Zhiyong, Mr. Feng Gang, Mr. Patrick Healy, Mr. Xue Yasong, Mr. Wang Xiaokang*, Mr. Duan  Hongyi*, Mr. Stanley Hui Hon-chung* and Mr. Li Dajin*

*  Independent non-executive director of the Company

 

END

 

 

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