THIRD QUARTERLY REPORT 2013

RNS Number : 7159R

Air China Ld

30 October 2013

 



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)

THIRD QUARTERLY REPORT 2013

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 October 2013 and the Board, among others, passed the resolution approving the quarterly report of the Company for the third quarter of 2013 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 report.

1.2     Directors absent from the meeting

Name of absent director	Position of absent director	Reason(s) for absence	Name of proxy
Wang Yinxiang	Director	Business engagement	Cao Jianxiong
Christopher Dale Pratt	Director	Business engagement	Ian Sai Cheung Shiu
Han Fangming	Independent Director	Business engagement	Fu Yang

1.3	The legal representative of the Company	Wang Changshun
	Person in charge of accounting function	Fan Cheng
	Person in charge of accounting department  (accounting superintendent)	Xiao Feng

Wang Changshun (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 is true and complete.

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

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

2.1     Major financial data

                                                                                                                                                           (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
		After adjustment	Before adjustment
				(%)
Total assets	204,549,853	185,418,452	185,710,906	10.32
Net asset attributable to  shareholders of  the listed company	54,511,169	50,286,084	50,578,538	8.4
	For the period from the beginning of the year to the end of the reporting period (January to September)	For the period from the beginning of last year to the end of the last reporting period (January to September)		Increase/decrease as compared to the corresponding period of the previous year
		After adjustment	Before adjustment
				(%)
Net cash flows from  operating activities	14,607,638	11,606,622	11,606,622	25.86

	For the period from the beginning of the year to the end of the reporting period (January to September)	For the period from the beginning of last year to the end of the last reporting period (January to September)		Increase/decrease as compared to the corresponding period of the previous year
		After adjustment	Before adjustment
				(%)
Revenue	73,786,988	76,309,837	76,309,837	-3.31
Net profit attributable to  shareholders of the listed     company	4,061,019	4,216,776	4,236,003	-3.69
Net profit attributable to  shareholders of the      listed company after    deducting non-recurring    profits and losses	3,810,504	3,631,124	3,650,351	4.94
Weighted average return  on net assets (%)	7.68	8.75	8.79	Decreased by 1.07 ppt
Basic earnings per share (RMB)	0.33	0.35	0.35	-5.71
Diluted earnings per share (RMB)	N/A	N/A	N/A	N/A

After deducting non-recurring profits and losses:

                                                                                                                                                          (RMB'000)

Items	Amounts for the period (July to September)	From the beginning of the year to the end of the reporting period (January to September)
Gains/(losses) from disposal of non-current assets	3,029	44,349
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 receive certain standard amount and quantities)	128,885	364,505
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)	-2,091	-3,728
Reversal of provision for impairment of receivables which are individually tested for impairment	23	228
Other non-operating income and expenses not covered above	-4,470	-5,140
Effect of income tax	-31,514	-91,731
Effect on minority interest (after tax)	-32,605	-57,968
Total	61,257	250,515

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

                                                                                                                                                        Unit: share

Total number of shareholders

288,056 (including 4,519 registered H Share shareholders)

Particulars of the top 10 shareholders

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	41.47	5,426,536,093	322,330,010	Frozen 127,445,536
Cathay Pacific Airways Limited	Foreign legal  person	20.13	2,633,725,455	0	Nil
HKSCC NOMINEES LIMITED	Foreign legal  person	12.82	1,677,472,175	0	Unknown
China National Aviation  Corporation (Group) Limited	Foreign legal  person	11.89	1,556,334,920	0	Frozen 36,454,464
China National Aviation Fuel Group Corporation	State-owned  legal person	0.66	86,300,000	0	Unknown
Sinotrans Air Transportation  Development Co., Ltd.	State-owned  legal person	0.58	75,800,000	0	Unknown
New China Life Insurance  Company Ltd. - Bonus - Personal  Bonus - 018L - FH002 Shanghai	Unknown	0.52	68,378,218	0	Unknown
Industrial and Commercial Bank  of China - Huaan Mid/Small-Cap  Securities Investment Fund	Unknown	0.19	25,000,000	0	Unknown
Industrial and Commercial Bank  of China - Baoying Coastal Area  Growth Stock Fund	Unknown	0.10	13,000,000	0	Unknown
National Social Securities Fund  110 Portfolio	Unknown	0.09	12,008,181	0	Unknown

Particulars of the top 10 shareholders not subject to selling restrictions

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	5,104,206,083	RMB ordinary shares 5,104,206,083
Cathay Pacific Airways Limited	2,633,725,455	Overseas listed foreign shares 2,633,725,455
HKSCC NOMINEES LIMITED	1,677,472,175	Overseas listed foreign shares 1,677,472,175
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 - Huaan  Mid/Small-Cap Securities Investment Fund	25,000,000	RMB ordinary shares 25,000,000
Industrial and Commercial Bank of China - Baoying  Coastal Area Growth Stock Fund	13,000,000	RMB ordinary shares 13,000,000
National Social Securities Fund 110 Portfolio	12,008,181	RMB ordinary shares 12,008,181
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 is directly and indirectly interested in 53.37% shares of the Company.

Note:  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 1,677,472,175 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.

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                  □ N/A

                                                                                                                                               (RMB'000)

Items in the consolidated balance sheet	As of 30 September 2013	As of 31 December 2012	Amount of change	Percentage change	Reasons for change
Cash and bank balances	18,560,025	12,590,884	5,969,141	47.41%	Mainly due to the fund raised from the issuance of corporate bonds of RMB5 billion in August and the peak season for traffic in the third quarter.
Bills receivable	254	1,253	-999	-79.73%	Due to the decrease in bills receivable issued for settlement for the period.
Prepayments	957,457	623,754	333,703	53.50%	Mainly to the increase in jet fuel prepayments and aircraft lease prepayments under operating lease.
Other current assets	372,527	144,552	227,975	157.71%	Due to the increase in deductible input VAT.
Long-term deferred expenses	424,229	296,613	127,616	43.02%	Mainly due to the deferred expenses arising from new aircraft under sale and leaseback finance lease to be amortized the future period.
Short-term borrowings	23,215,382	16,787,697	6,427,685	38.29%	Mainly due to some of the short-term borrowings raised under the capital expenditure scheme and financing scheme of the Company.
Short-term bonds payable	700,000	1,500,000	-800,000	-53.33%	Mainly due to the repayment of short-term bonds in the sum of RMB1,500 million and the short-term bonds raised in the sum of RMB700 million for the period.

Items in the consolidated balance sheet	As of 30 September 2013	As of 31 December 2012	Amount of change	Percentage change	Reasons for change
Financial liabilities held for trading	45,716	120,413	-74,697	-62.03%	Mainly due to the reversal of fair value of the liabilities under interest rate derivative contract.
Bills payable	-	1,503	-1,503	-100.00%	Mainly due to the repayment of bills payable for the period.
Taxes payable	1,090,223	444,972	645,251	145.01%	Mainly due to the increase in enterprise income tax payable to the parent company of RMB600 million.
Interest payable	783,571	352,515	431,056	122.28%	Mainly due to the provision for interests accrued on medium-term bills and corporate bonds of the parent company for the period.
Non-current liabilities due within one year	19,181,699	13,802,983	5,378,716	38.97%	Mainly due to the increase in long-term borrowings due within one year and bonds payable.
Bonds payable	19,000,000	12,000,000	7,000,000	58.33%	Mainly due to the issuance of two tranches of corporate bonds in the sum of RMB10 billion by the parent company in 2012 and the reclassification of the second tranche medium-term bills in the sum of RMB3 billion in 2009 to non-current liabilities due within one year upon request for 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 period from beginning of last year to the end of the last reporting period (January to September)	Amount of change	Percentage change	Reasons for the change
Business taxes and  surcharges	258,278	1,646,562	-1,388,284	-84.31%	Mainly due to the application of VAT instead of business tax.
Finance costs	498,895	2,076,851	-1,577,956	-75.98%	Mainly due to the increase in net exchange gain of RMB1,986 million.
Impairment loss of assets	18,491	-230,408	248,899	-108.03%	Mainly due to the reversal of the provision for other receivables and bad debt of the subsidiaries made in prior years in the same period of last year and the absence of such gain recognised for the period.
Investment income	583,053	172,801	410,252	237.41%	Mainly due to the increase in the investment income from associates and joint ventures as compared with the same period of last year.
Non-operating income	462,760	701,467	-238,707	-34.03%	Mainly due to the decrease in subsidy income received for the period as compared with the same period of last year.
Non-operating expenses	59,046	103,591	-44,545	-43.00%	Mainly due to the estimated losses on liquidation of the investee amounting to RMB300 million and the absence of such loss recognized for the period.

Items in the consolidated statement of cash flows	For the period from the begin- ning of the year to the end of the reporting period (January to September)	For the period from beginning of last year to the end of the last reporting period (January to September)	Amount of change	Percentage change	Reasons for the change
Tax and levies paid	2,433,170	5,785,336	-3,352,166	-57.94%	Decrease in enterprise income taxes in this reporting period as compared to the corresponding period of the previous year, and substantial decrease in business tax provided for and paid in this reporting period due to the change of applicable taxes from business taxes to value-added taxes.
Cash received from  investment income	216,825	445,391	-228,566	-51.32%	Decrease in dividends received from associates in this reporting period.
Net cash proceeds from disposal of fixed assets, intangible assets and other long-term assets	975,168	227,562	747,606	328.53%	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	429,771	300,773	128,998	42.89%	Establishment of a new subsidiary in this reporting period and capital injection from minority shareholders received for subscription of registered capital.
Cash paid for purchase of fixed assets, intangible assets and other long-term assets	15,668,864	10,322,533	5,346,331	51.79%	Increase in prepayments for the purchase of aircraft and payment of the balance of purchase prices upon the delivery of aircraft in this reporting period as compared to the corresponding period of the previous year.

Items in the consolidated statement of cash flows	For the period from the begin- ning of the year to the end of the reporting period (January to September)	For the period from beginning of last year to the end of the last reporting period (January to September)	Amount of change	Percentage change	Reasons for the change
Cash paid for investments	10,403	-	10,403	100.00%	Capital contributions for the establishment of associates and investees in this reporting period.
Net increase in secured loans	47,253	674,283	-627,030	-92.99%	Smaller change between the opening and closing balances of secured deposits in this reporting period and greater change in the balance of secured deposits in the corresponding period of last year.
Cash received from capital injection	1,044,449	-	1,044,449	100.00%	Private place of ordinary shares (A Shares) by the Company to the parent company in this reporting period.
Cash received from bond issuances	10,000,000	-	10,000,000	100.00%	Issuance of two tranches of bonds in this reporting period.

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

□Applicable                             ✓□□□ N/A

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

□Applicable                             ✓□ N/A

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                             ✓□ N/A

Air China Limited

Legal representative: Wang Changshun

29 October 2013

4.       APPENDIX

4.1     Consolidated Balance Sheet

30 September 2013

Prepared by Air China Limited

                                                                                                                                Unit: RMB'000 (Unaudited)

Items	Balance at the end of period	Balance at the beginning of the year
CURRENT ASSETS:
Cash and bank balances	18,560,025	12,590,884
Provisions on payables
Contributions made
Financial assets held for trading	12,503	12,671
Bills receivable	254	1,253
Accounts receivable	3,167,922	2,967,150
Prepayments	957,457	623,754
Premium receivable
Receivables on reinsurance
Provisions for reinsurance contracts
Interest receivable
Dividend receivable
Other receivables	3,555,440	3,103,008
Purchase of financial assets resold
Inventories	1,111,600	1,105,048
Non-current assets due within a year
Other current assets	372,527	144,552
Total current assets	27,737,728	20,548,320
NON-CURRENT ASSETS:
Loans and advances
Available-for-sale financial assets
Held-to-maturity investments
Long-term receivables	424,203	445,657
Long-term equity investments	15,321,656	14,947,723
Investment property	221,533	229,824
Fixed assets	122,610,732	116,303,025
Construction in progress	31,040,859	25,977,975

Items	Balance at the end of period	Balance at the beginning of the year
Construction materials
Disposal of fixed assets
Biological assets for production
Oil and gas assets
Intangible assets	2,893,524	2,810,814
Development expenses
Goodwill	1,102,185	1,102,185
Long-term deferred expenses	424,229	296,613
Deferred tax assets	2,773,204	2,756,316
Other non-current assets
Total non-current assets	176,812,125	164,870,132
Total assets	204,549,853	185,418,452
CURRENT LIABILITIES:
Short-term loans	23,215,382	16,787,697
Short-term bonds payable	700,000	1,500,000
Borrowings from central bank
Deposits from clients and placements from   other banks
Contributions received
Financial liabilities held for trading	45,716	120,413
Bills payable		1,503
Accounts payable	12,401,101	11,246,311
Domestic air traffic liabilities	1,842,105	1,566,686
International air traffic liabilities	2,722,613	2,310,101
Receipts in advance	157,107	162,884
Sale of financial assets repurchased
Fees and commissions payable
Salaries and wages payable	2,027,337	2,192,434
Taxes payable	1,090,223	444,972
Interests payable	783,571	352,515
Dividend payable
Other payables	5,583,002	5,322,884
Amounts payable on reinsurance
Reserves on insurance contracts
Brokerage payable
Underwriting fees payable
Non-current liabilities due within a year	19,181,699	13,802,983
Other current liabilities
Total current liabilities	69,749,856	55,811,383

Items	Balance at the end of period	Balance at the beginning of the year
NON-CURRENT LIABILITIES:
Long-term borrowings	21,410,190	30,254,161
Debentures payable	19,000,000	12,000,000
Long-term payables	3,287,408	2,892,595
Obligations under finance leases payable	26,728,393	25,476,607
Specific payables
Estimated liabilities	380,341	406,470
Deferred income tax liabilities	1,836,692	1,561,424
Deferred income	3,871,700	3,361,737
Other non-current liabilities
Total non-current liabilities	76,514,724	75,952,994
Total liabilities	146,264,580	131,764,377
OWNER'S EQUITY (OR SHAREHOLDERS'  EQUITY):
Issued capital	13,084,751	12,891,955
Capital reserve	17,683,628	16,492,312
Less: Treasury shares
Specific reserves
Surplus reserves	4,985,234	4,572,881
General risk provisions
Profit available for appropriation	22,236,871	19,374,375
Foreign exchange translation reserve	-3,479,315	-3,045,439
Total owner's equity attributable to   shareholders of the Company	54,511,169	50,286,084
Minority interests	3,774,104	3,367,991
Total owner's equity	58,285,273	53,654,075
Total liabilities and owner's equity	204,549,853	185,418,452

Legal representative of the Company: Wang Changshun

Person in charge of accounting function: Fan Cheng

Person in charge of accounting department: Xiao Feng

Balance Sheet of the Parent Company

30 September 2013

Prepared by Air China Limited

                                                                                                                               Unit: RMB'000 (Unaudited)

Items	Balance at the end of the period	Balance at the beginning of the year
CURRENT ASSETS:
Cash and bank balances	9,727,869	4,563,495
Held-for-trading financial assets
Bills receivable
Accounts receivable	3,286,899	3,035,978
Prepayments	406,840	356,752
Interests receivable
Dividend receivable
Other receivables	3,077,189	2,959,011
Inventories	701,849	712,204
Non-current assets due within a year
Other current assets	310,991	96,956
Total current assets	17,511,637	11,724,396
NON-CURRENT ASSETS:
Available-for-sale financial assets
Held-to-maturity investments
Long-term receivables	239,794	268,036
Long-term equity investments	22,648,650	22,286,909
Investment properties
Fixed assets	91,779,969	86,210,690
Construction in progress	19,569,790	18,866,393
Construction materials
Disposal of fixed assets
Biological assets for production
Oil and gas assets
Intangible assets	2,149,055	2,168,710
Development expenses
Goodwill
Long-term deferred expenses	115,810	144,147
Deferred income tax assets	1,943,001	1,936,769
Other non-current assets
Total non-current assets	138,446,069	131,881,654
Total assets	155,957,706	143,606,050

Items	Balance at the end of the period	Balance at the beginning of the year
CURRENT LIABILITIES:
Short-term borrowings	12,793,479	9,472,970
Short-term bonds payable		1,500,000
Held-for-trading financial liabilities	18,143	86,375
Bills payable
Accounts payable	8,156,825	7,471,856
Domestic air traffic liabilities	1,400,460	1,075,356
International air traffic liabilities	2,570,921	2,118,787
Receipts in advance	61,765	66,562
Salaries and wages payable	1,044,890	1,057,014
Taxes payable	764,046	186,033
Interests payable	717,161	311,029
Dividend payable
Other payables	1,617,403	1,601,657
Non-current liabilities due within a year	16,460,816	11,213,067
Other current liabilities
Total current liabilities	45,605,909	36,160,706
NON-CURRENT LIABILITIES:
Long-term borrowings	10,144,613	18,433,492
Debentures payable	19,000,000	12,000,000
Long-term payables	1,691,411	1,488,439
Obligations under finance leases payable	24,089,342	24,270,585
Specific payables
Estimated liabilities	38,198	46,099
Deferred income tax liabilities	230,946	210,441
Deferred income	2,742,882	2,328,772
Other non-current liabilities
Total non-current liabilities	57,937,392	58,777,828
Total liabilities	103,543,301	94,938,534
OWNER'S EQUITY (OR SHAREHOLDER'S  EQUITY):
Issued capital	13,084,751	12,891,955
Capital reserve	20,963,508	20,111,766
Less: Treasury shares
Specific reserves
Surplus reserves	4,985,234	4,563,291
General risk provisions
Profit available for appropriation	13,380,912	11,100,504
Total owner's equity (or shareholders' equity)	52,414,405	48,667,516
Total liabilities and owner's equity   (or shareholders' equity)	155,957,706	143,606,050

Legal representative of the Company: Wang Changshun

Person in charge of accounting function: Fan Cheng

Person in charge of accounting department: Xiao Feng

4.2     Consolidated Income Statement

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 last reporting period (January to September)
I.	Revenue from operations	27,928,675	28,749,484	73,786,988	76,309,837
	Including:      Operating income	27,928,675	28,749,484	73,786,988	76,309,837
	Interest income
	Premium earned
	Fees and commission income
II.	Total operating costs	24,317,952	24,651,424	69,110,000	70,901,507
	Including:      Operating costs	21,254,349	20,777,552	60,785,053	60,162,745
	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	81,707	554,517	258,278	1,646,562
	Selling expenses	1,937,006	1,790,599	5,334,748	5,070,806
	Administrative expenses	763,969	760,020	2,214,535	2,174,951
	Finance expenses	280,574	768,945	498,895	2,076,851
	Impairment loss of assets	347	-209	18,491	-230,408
	Add:      Gains from changes in fair value - (loss is represented by "-" sign)	-2,091	2,409	-3,045	5,953
	Investment income (loss is represented               by "-" sign)	412,552	384,205	583,053	172,801
	Including:   Gains arising from investments in  associated companies  and joint ventures	411,273	337,726	579,884	170,306
	Exchange gains (loss is represented by               "-" sign)

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 last reporting period (January to September)
III.	Profit from operations  (loss is represented by "-" sign)	4,021,184	4,484,674	5,256,996	5,587,084
	Add: Non-operating income	145,817	230,344	462,760	701,467
	Less: Non-operating expenses	18,373	14,116	59,046	103,591
	Including: Loss arising from disposal of non-current assets	5,919	2,610	26,946	13,992
IV.	Total profit (total loss is represented by "-" sign)	4,148,628	4,700,902	5,660,710	6,184,960
	Less: Income tax expenses	882,197	1,188,915	1,268,780	1,493,675
V.	Net profit (net loss is represented by "-" sign)	3,266,431	3,511,987	4,391,930	4,691,285
	Net profits attributable to shareholders of the Company	2,942,127	3,174,118	4,061,019	4,216,776
	Gains or losses attributable to minority interests	324,304	337,869	330,911	474,509
VI.	Earnings per share:
	(I) Basic	0.24	0.26	0.33	0.35
	(II) Diluted	N/A	N/A	N/A	N/A
VII.	Other consolidated gains	-92,744	59,445	47,459	115,201
VIII.	Total consolidated gains	3,173,687	3,571,432	4,439,389	4,806,486
	Total consolidated gains attributable to shareholders of the Company	2,851,796	3,233,860	4,118,278	4,329,659
	Total consolidated gains attributable to minority interests	321,891	337,572	321,111	476,827

Legal representative of the Company: Wang Changshun

Person in charge of accounting function: Fan Cheng

Person in charge of accounting department: Xiao Feng

Income Statement of the Parent Company

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 last  reporting period (January to September)
I.	Revenue from operations	19,842,160	20,292,634	52,335,145	54,040,244
	Less: Operating cost	15,006,593	14,537,505	42,936,494	42,600,103
	Business taxes and other levies	29,139	321,032	97,432	1,033,049
	Selling expenses	1,446,421	1,310,269	4,122,034	3,703,270
	Administrative expenses	430,031	407,361	1,234,608	1,189,871
	Finance expenses	172,937	507,122	197,245	1,383,418
	Impairment loss of assets	0	0	18,242	15,526
	Add: Gains from changes in fair value (loss is represented by "-"sign)	71	-4,539	1,470	-8,031
	Investment income (loss is represented by "-" sign)	219,015	252,764	449,087	267,816
	Including: Gains arising from investments in associated companies and joint ventures	219,015	252,764	330,312	267,816
II.	Profit from operations (loss is  represented by "-" sign)	2,976,125	3,457,570	4,179,647	4,374,792
	Add: Non-operating income	44,337	164,411	231,683	471,736
	Less: Non-operating expenses	11,779	8,812	36,189	29,217
	Including: Loss arising from disposal of non-current assets	5,118	2,422	14,772	11,972
III.	Total profit (total loss is represented by "-" sign)	3,008,683	3,613,169	4,375,141	4,817,311
	Less: Income tax expenses	636,375	933,574	896,210	1,101,056
IV.	Net profit (net loss is represented by "-" sign)	2,372,308	2,679,595	3,478,931	3,716,255
V.	Earnings per share:
	(I) Basic
	(II) Diluted
VI.	Other consolidated gains	0	0	89	300
VII.	Total consolidated gains	2,372,308	2,679,595	3,479,020	3,716,555

Legal representative of the Company: Wang Changshun

Person in charge of accounting function: Fan Cheng

Person in charge of accounting department: Xiao Feng

4.3    Consolidated Cash Flow Statement

January to September 2013

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 to September)	Amounts for the period from the beginning of last year to the end of the last reporting period (January to September)
I.	Cash flows from operating activities:
	Cash received from sales of goods and provision  of services	77,950,954	75,138,050
	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	155,187	149,108
	Other cash received relating to operating activities	1,367,697	1,913,079
	Subtotal of cash inflows of operating activities	79,473,838	77,200,237
	Cash paid for goods purchased and services received	46,067,549	44,395,196
	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	9,739,148	9,646,963
	Tax and levies paid	2,433,170	5,785,336
	Other cash paid relating to operating activities	6,626,333	5,766,120
	Subtotal of cash outflows from operating activities	64,866,200	65,593,615
	Net cash flows from operating activities	14,607,638	11,606,622

Items		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 last year to the end of the last reporting period (January to September)
II.	Cash flows from investment activities:
	Cash received from sales and redemption of  investments
	Cash received from investment income	216,825	445,391
	Net cash proceeds from disposal of fixed assets,  intangible assets and other long-term assets	975,168	227,562
	Net cash proceeds from disposal of subsidiaries  and other business units
	Other cash received relating to investment activities	429,771	300,773
	Subtotal of cash inflows from investment activities	1,621,764	973,726
	Cash paid for purchase of fixed assets,  intangible assets and other long-term assets	15,668,864	10,322,533
	Cash paid for investments	10,403
	Net increase in secured loans	47,253	674,283
	Net cash payments for acquisition of subsidiaries  and other business units
	Other cash paid relating to investment activities	77,574	62,418
	Subtotal of cash outflows from investment activities	15,804,094	11,059,234
	Net cash flows from investment activities	-14,182,330	-10,085,508

Items		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 last year to the end of the last reporting period (January to September)
III.	Cash flows from financing activities:
	Cash received from capital injection	1,044,449
	Including: Cash received from capital injection of 　　　　 minority shareholders in subsidiaries
	Cash received from borrowings	24,271,543	21,868,527
	Cash received from issue of debentures	10,000,000
	Other cash received relating to financing activities
	Subtotal of cash inflows from financing activities	35,315,992	21,868,527
	Cash paid for repayment of borrowings	23,904,226	19,650,465
	Cash paid for distribution of dividends, profits or  payment of interest expenses	2,707,301	3,552,167
	Including: Dividends and profit paid to minority 　　　　 shareholders by subsidiaries	114,998
	Other cash paid relating to financing activities	2,996,558	2,604,436
	Subtotal of cash outflows from financing activities	29,608,085	25,807,068
	Net cash flows from financing activities	5,707,907	-3,938,541
IV.	Effect of exchange rate changes on cash and  cash equivalents	-142,022	-58,111
V.	Net increase in cash and cash equivalents	5,991,193	-2,475,538
	Add: Balance of cash and cash equivalents as at 　　 the beginning of the period	11,787,943	15,306,409
VI.	Balance of cash and cash equivalents as at the  end of the period	17,779,136	12,830,871
Legal representative of the Company: Wang Changshun
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 September 2013

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 to September)	Amounts for the period from the beginning of last year to the end of the last reporting period (January to September)
I.	Cash flows from operating activities:
	Cash received from sales of goods and provision  of services	55,448,326	52,876,501
	Refund of tax and levy	7,214	7,985
	Other cash received relating to operating activities	1,212,264	1,235,272
	Subtotal of cash inflows from operating activities	56,667,804	54,119,758
	Cash paid for goods purchased and services  received	33,290,008	31,826,473
	Cash paid to and on behalf of employees	5,398,547	6,060,737
	Taxes and levies paid	1,351,502	3,971,238
	Other cash paid relating to operating activities	4,752,123	4,118,384
	Subtotal of cash outflows from operating activities	44,792,180	45,976,832
	Net cash flows from operating activities	11,875,624	8,142,926
II.	Cash flows from investment activities:
	Cash received from sales and redemption of investments		2,200,000
	Cash received from investment income	236,066	107,129
	Net cash proceeds from disposal of fixed assets,  intangible assets and other long-term assets	261,589	192,855
	Net cash proceeds from disposal of subsidiaries  and other business units
	Other cash received relating to investment activities	87,940	158,704
	Subtotal of cash inflows from investment activities	585,595	2,658,688
	Cash paid for purchase of fixed assets, intangible  assets and other long-term assets	10,428,323	6,366,526
	Cash paid for investments	9,403
	Net cash payments for acquisition of subsidiaries  and other business units	147,824	480,000
	Other cash paid relating to investment activities	66,762	742,617
	Subtotal of cash outflows from investment activities	10,652,312	7,589,143
	Net cash flows from investment activities	-10,066,717	-4,930,455

Items		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 last year to the end of the last reporting period (January to September)
III.	Cash flows from financing activities:
	Cash received from capital injection	1,044,449
	Cash received from borrowings	13,348,903	14,347,805
	Cash received from issue of debentures	10,000,000
	Other cash received relating to financing activities
	Subtotal of cash inflows from financing activities	24,393,352	14,347,805
	Cash paid for repayment of borrowings	16,535,304	15,704,780
	Cash paid for distribution of dividends, profits or  payment of interest expenses	1,799,926	2,837,887
	Other cash paid relating to financing activities	2,680,608	2,065,255
	Subtotal of cash outflows from financing activities	21,015,838	20,607,922
	Net cash flows from financing activities	3,377,514	-6,260,117
IV.	Effect of exchange rate changes on cash and  cash equivalents	-22,047	-49,373
V.	Net increase in cash and cash equivalents	5,164,374	-3,097,019
	Add: Balance of cash and cash equivalents as at 　　 the beginning of the period	3,900,178	7,797,123
VI.	Balance of cash and cash equivalents as at the  end of the period	9,064,552	4,700,104
Legal representative of the Company: Wang Changshun
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 October 2013

As at the date of this announcement, the directors of the Company are Mr. Wang Changshun, Ms. Wang Yinxiang, Mr. Cao Jianxiong, Mr. Sun Yude, Mr. Christopher Dale Pratt, Mr. Ian Sai Cheung Shiu, Mr. Cai Jianjiang, Mr. Fan Cheng, Mr. Fu Yang*, Mr. Li Shuang*, Mr. Han Fangming* and Mr. Yang Yuzhong*.

* Independent non-executive director of the Company

 

END

 

 

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