Air China Regulatory News (AIRC)

Name of absent

directors

Position of absent

directors

Reason(s) for absence

Name of proxy

Wang Yinxiang

Vice Chairman and

business engagement

Cao Jianxiong

 Non-executive director

Christopher Dale Pratt

Non-executive director

business engagement

Ian Sai Cheung Shiu

Cai Jianjiang

Executive director

business engagement

Fan Cheng

1.4

Legal representative of the Company

Kong Dong

Person in charge of accounting function

Fan Cheng

Person in charge of accounting department (accounting superintendent)

Xiao Feng

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 (RMB'000)

171,421,348.00

155,219,613.00

10.44

Owner's equity (or shareholders'

 equity) (RMB'000)

47,316,090.00

41,652,625.00

13.60

Net asset per share attributable to

 shareholders of the listed

 company (RMB per share)

3.89

3.58

8.66

From the beginning of

the year to the end of

the reporting period

(January to September)

Increase/ decrease

over the corresponding period of the previous year

(%)

Net cash flow from operating

 activities (RMB'000)

18,690,636.00

20.04

Net cash flow from operating

 activities per share

 (RMB per share)

1.54

14.93

Net profit attributable to

 shareholders of the

 listed company (RMB'000)

3,799,624.00

7,862,838.00

-26.46

Basic earnings per share

 (RMB per share)

0.31

0.65

-31.11

Basic earnings per share after

 deducting non-recurring

 profits and losses

 (RMB per share)

0.30

0.62

-26.83

Diluted earnings per share

 (RMB per share)

N/A

N/A

N/A

Weighted average return

 on net assets (%)

8.53

17.66

Decreased by 9.57 percentage points

Weighted average return

 on net assets after deducting

 non-recurring profits

 and losses (%)

8.09

16.83

Decreased by 8.51 percentage points

Gains/losses from disposal of non-current assets

47,979

Government grants (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) included in the profits and losses

 for the current period

461,701

Gain/losses from changes in fair value of financial

 assets/liabilities held for trading and investment gains

 from disposal of financial assets/liabilities held for trading

 and available-for-sale financial assets (except for hedging

 activities related to the Company's normal operating business)

77,208

Reversal of provision for impairment of receivables which

 are individually tested for impairment

56,835

Other non-operating income and expenses not covered above

-33,696

Effect of income tax

-150,158

Effect on non-controlling interests (after tax)

-89,840

Total

370,029

Total number of shareholders at the end of the reporting period

320,513

(in which registered shareholders of

H shares amounted

to 4,704)

Name of shareholder (full name)

Number of listed shares not subject

to trading

moratorium held

as at period end

Class of Shares

China National Aviation Holding Company

4,949,066,567

RMB ordinary shares 4,949,066,567

Cathay Pacific Airways Limited

2,507,385,455

Overseas listed  foreign shares 2,507,385,455

HKSCC NOMINEES LIMITED

1,857,943,579

Overseas listed  foreign shares 1,857,943,579

China National Aviation Corporation

 (Group) Limited

1,399,334,920

RMB ordinary shares 1,332,482,920

Overseas listed

foreign shares 66,852,000

China Life Insurance Company Limited -

 Bonus- Personal Bonus - 005L - FH002 Shanghai

85,540,848

RMB ordinary shares 85,540,848

Sinotrans Air Transportation Development Co., Ltd.

75,800,000

RMB ordinary shares 75,800,000

China Life Insurance Company

 Limited - Traditional - Ordinary

 Insurance Products - 005L - CT001 Shanghai

36,092,823

RMB ordinary shares 36,092,823

China Construction Bank - Yinhua - Dow Jones

 China 88 Select Equity Fund

23,759,910

RMB ordinary shares 23,759,910

Bank of Communications - E Fund 50 Index

 Securities Investment Fund

21,946,169

RMB ordinary shares 21,946,169

Industrial and Commercial Bank of

 China - Baoying Pan-Coastal Regional Growth Equity  

 Securities Investment Fund

21,634,520

RMB ordinary shares 21,634,520

 Applicable

 Not applicable

Accounts payable

32.72%

The increase in the accounts payables

 corresponding to major costs was driven

 by the increasing number of flight

 and the rising oil price.

Corporate bonds

-33.33%

The first tranche of the RMB3,000 million

  medium term notes issued in 2009 was

  transferred to the non-current liabilities  

 repayable within one year.

Non-controlling interests

5365.08%

This was mainly attributable to a reduction  

 of the shareholding in Air China Cargo,  

 a subsidiary of the Group, from 100% to  

 51% through ownership restructuring and  

 other arrangements. Profitability of

 other non-wholly owned subsidiaries  

 also had an impact on

 the non-controlling interests.

Finance costs

-375.17%

Due to a substantial change in the exchange

 rates, the net exchange gains generated  

 during the period between January and  

 September in 2011 increased by

 RMB1,330 million as compared with

 the same period last year.

Impairment losses

 of assets

307.67%

Impairment provision for fixed assets

 was made for the current period.

Gains from movements

 in fair value

-92.95%

There was a decrease in the balance of

 the unsettled fuel derivative contracts for

 the current period.

Investment income

-56.10%

There was a decrease in the investment

 income from associates as compared with

 the same period last year.

Non-operating income

75.50%

There was an increase in the government

 grants included in the profit and loss for

 the current period.

 Applicable

 Not applicable

 Applicable

 Not applicable

 Applicable

 Not applicable

CURRENT ASSETS:

 Cash and bank balances

16,599,513

15,011,027

 Provisions on payables

 Contributions made

 Financial assets held for trading

18,363

27,379

 Bills receivable

646

14,295

 Accounts receivable

3,235,470

3,180,638

 Prepayments

665,130

683,781

 Premium receivable

 Receivables on reinsurance

 Provisions for reinsurance contracts

 Interest receivable

 Dividend receivable

 Other receivables

1,769,556

1,138,695

 Purchase of financial assets resold

 Inventories

1,130,397

932,317

 Non-current assets due within a year

 Other current assets

Total current assets

23,419,075

20,988,132

NON-CURRENT ASSETS:

 Loans and advances

 Available-for-sale financial assets

 Held-to-maturity investments

 Long term receivables

395,680

393,492

 Long term equity investments

15,175,697

15,522,585

 Investment property

 Fixed assets

98,943,260

88,224,954

 Construction in progress

26,945,219

23,518,332

 Construction materials

 Disposal of fixed assets

 Biological assets for production

 Oil and gas assets

 Intangible assets

2,860,935

2,867,600

 Development expenses

 Goodwill

1,279,076

1,449,030

 Long term deferred expenses

175,481

181,317

 Deferred tax assets

2,226,925

2,074,171

 Other non-current assets

Total non-current assets

148,002,273

134,231,481

Total assets

171,421,348

155,219,613

CURRENT LIABILITIES:

 Short term loans

11,983,922

15,703,154

 Borrowings from central bank

 Deposits from clients and placements

from other banks

 Contributions received

 Financial liabilities held for trading

275,694

427,329

 Bills payable

190,078

387,327

 Accounts payable

12,510,740

9,426,483

Domestic air traffic liabilities

1,929,072

1,582,868

International air traffic liabilities

2,635,212

2,025,831

 Receipts in advance

137,210

125,088

 Sale of financial assets repurchased

 Fees and commissions payable

 Employee compensations payable

2,108,654

1,593,762

 Taxes payable

3,201,988

2,998,802

 Interest payable

322,076

310,029

 Dividend payable

 Other payables

5,907,568

4,630,782

 Amounts payable on reinsurance

 Provisions on insurance contracts

 Brokerage payable

 Underwriting fees payable

 Non-current liabilities repayable within one year

10,813,118

11,421,643

 Other current liabilities

Total current liabilities

52,015,332

50,633,098

Items

Balance at

the end of

the period

Balance at

the beginning

of the year

NON-CURRENT LIABILITIES:

 Long term loans

38,380,657

31,923,371

 Corporate bonds

6,000,000

9,000,000

 Long term payables

2,556,758

2,271,951

Obligations under finance leases

18,183,910

16,061,353

 Specific payables

 Accrued liabilities

68,080

77,820

 Deferred tax liabilities

1,155,985

1,005,840

Deferred income

3,192,617

2,546,860

 Other non-current liabilities

Total non-current liabilities

69,538,007

62,887,195

Total liabilities

121,553,339

113,520,293

OWNERS' EQUITY (or SHAREHOLDERS'

 EQUITY):

 Issued capital

12,891,955

12,891,955

 Capital reserve

16,369,935

16,245,469

 Less: Treasury shares

 Specific reserves

 Reserve funds

2,792,686

2,178,300

 General risk provisions

 Retained earnings

18,201,754

12,515,511

 Foreign exchange translation reserve

-2,940,240

-2,178,610

 Equity attributable to equity holders

  of the Company

47,316,090

41,652,625

 Non-controlling interests

2,551,919

46,695

Total owners' equity

49,868,009

41,699,320

Total liabilities and owners' equity

171,421,348

155,219,613

CURRENT ASSETS:

 Cash and bank balances

9,870,544

11,501,617

 Financial assets held for trading

 Bills receivable

14,000

 Accounts receivable

2,802,445

2,373,658

 Prepayments

301,840

286,661

 Interest receivable

 Dividend receivable

 Other receivables

1,863,461

863,251

 Inventories

793,951

610,976

 Non-current assets due within a year

1,000,000

 Other current assets

Total current assets

16,632,241

15,650,163

NON-CURRENT ASSETS:

 Available-for-sale financial assets

 Held-to-maturity investments

 Long term receivables

182,805

202,668

 Long term equity investments

21,357,669

20,400,634

 Investment property

 Fixed assets

73,221,411

66,229,019

 Construction in progress

20,537,632

17,073,638

 Construction materials

 Disposal of fixed assets

 Biological assets for production

 Oil and gas assets

 Intangible assets

2,243,578

2,306,963

 Development expenses

 Goodwill

 Long term deferred expenses

111,174

133,027

 Deferred tax assets

1,356,500

1,406,000

 Other non-current assets

Total non-current assets

119,010,769

107,751,949

Total assets

135,643,010

123,402,112

Items

Balance at

the end of the period

Balance at

the beginning

of the year

CURRENT LIABILITIES:

 Short term loans

10,378,475

12,510,835

 Financial liabilities held for trading

217,732

340,049

 Bills payable

 Accounts payable

7,762,435

6,030,431

Domestic air traffic liabilities

1,415,664

1,061,056

International air traffic liabilities

2,406,410

1,913,086

 Receipts in advance

28,663

32,077

 Employee compensations payable

1,260,085

826,969

 Taxes payable

2,535,100

2,652,617

 Interest payable

310,289

283,176

 Dividend payable

 Other payables

1,747,318

1,817,937

 Non-current liabilities repayable within one year

8,733,050

9,018,891

 Other current liabilities

Total current liabilities

36,795,221

36,487,124

NON-CURRENT LIABILITIES:

 Long term loans

25,573,619

18,576,233

 Corporate bonds

6,000,000

9,000,000

 Long term payables

1,286,480

1,216,641

Obligations under finance leases

17,374,746

15,407,125

 Specific payables

 Accrued liabilities

66,693

77,820

 Deferred tax liabilities

104,500

128,000

Deferred income

2,332,465

1,806,514

 Other non-current liabilities

Total non-current liabilities

52,738,503

46,212,333

Total liabilities

89,533,724

82,699,457

OWNERS' EQUITY (or SHAREHOLDERS'

 EQUITY):

 Issued capital

12,891,955

12,891,955

 Capital reserve

20,111,446

20,112,513

 Less: Treasury shares

 Specific reserves

 Reserve funds

2,783,096

2,168,710

 General risk provisions

 Retained earnings

10,322,789

5,529,477

Total owners' equity (or shareholders' equity)

46,109,286

40,702,655

 Total liabilities and owners' equity

(or shareholders' equity)

135,643,010

123,402,112

I. Total revenue from operations

28,144,172

24,826,376

73,274,530

59,134,049

Including: Operating income

28,144,172

24,826,376

73,274,530

59,134,049

Interest income

Premium earned

Fees and commission income

II. Total operating cost

23,359,768

19,416,141

63,848,184

50,825,245

Including: Cost of operations

20,308,920

17,149,479

56,112,880

44,100,892

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 surcharges

654,223

514,545

1,682,321

1,176,649

Selling expenses

1,807,184

1,710,459

4,887,771

4,132,214

General and administrative

 expenses

754,412

622,543

2,040,634

1,581,768

Finance costs

-660,290

-580,885

-1,390,784

-292,693

Impairment losses of assets

495,319

515,362

126,415

Add: Gains from movements in fair value (loss is represented by "-" sign)

37,882

518,545

77,208

1,095,514

Investment income (loss is represented by "-" sign)

583,927

897,711

1,224,028

2,787,920

Including: Share of profits and losses of associates and joint ventures

583,929

889,500

1,222,528

2,628,954

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 previous reporting period (January

to September)

III. Profit from operations (loss is represented by "-" sign)

5,406,213

6,826,491

10,727,582

12,192,238

Add: Non-operating income

281,074

92,469

536,629

305,780

Less: Non-operating expenses

10,603

8,690

60,645

28,491

Including:Loss on disposal of non-current assets

737

4,955

10,793

IV. Profit before tax (loss is represented by "-" sign)

5,676,684

6,910,270

11,203,566

12,469,527

Less: Tax

1,497,438

1,437,168

2,672,207

2,215,254

V. Net profit (loss is represented

 by "-" sign)

4,179,246

5,473,102

8,531,359

10,254,273

Net profit attributable to equity holders

 of the Company

3,799,624

5,166,778

7,862,838

9,860,799

Non-controlling interests

379,622

306,324

668,521

393,474

VI. Earnings per share:

(I) Basic

0.31

0.45

0.65

0.85

(II) Diluted

N/A

N/A

N/A

N/A

VII. Other comprehensive income

-345,022

-210,909

-564,830

-353,375

VIII. Total comprehensive income

3,834,224

5,262,193

7,966,529

9,900,898

Attributable to equity holders of the Company

3,455,872

4,955,883

7,300,418

9,507,401

Non-controlling interests

378,352

306,310

666,111

393,497

I. Revenue from operations

20,165,821

18,196,086

52,639,379

46,087,475

Less: Cost of operations

14,301,961

12,229,044

39,931,956

34,282,264

Business taxes and surcharges

437,261

368,613

1,132,709

929,114

Selling expenses

1,324,071

1,293,219

3,591,194

3,375,367

General and administrative expenses

421,248

372,030

1,120,662

1,032,642

Finance costs

-674,941

-550,418

-1,417,251

-300,156

Impairment losses in assets

550,000

550,000

126,415

Add: Gains from movements in fair value (loss isrepresented by "-"sign)

-16,800

519,400

26,119

1,116,002

Investment income (loss is represented by "-" sign)

216,083

172,063

1,083,101

299,251

Including: Share of profitsof associates andjoint ventures

216,084

171,002

408,118

298,063

II. Profit from operations (loss is represented by "-" sign)

4,005,504

5,175,061

8,839,329

8,057,082

Add: Non-operating income

187,575

34,647

342,446

160,071

Less: Non-operating expenses

10,758

6,519

23,299

16,332

Including: Loss on disposal of non-current assets

1,144

792

3,516

4,510

III. Profit before tax (loss is represented by "-" sign)

4,182,321

5,203,189

9,158,476

8,200,821

Less: Tax

1,210,536

1,258,993

2,226,948

1,917,856

IV. Net profit (loss is represented by "-" sign)

2,971,785

3,944,196

6,931,528

6,282,965

V. Earnings per share:

(I) Basic

(II) Diluted

VI. Other comprehensive income

-147

-1,067

452

VII. Total comprehensive income

2,971,638

3,944,196

6,930,461

6,283,417

I. Cash flows from operating activities:

Cash received from sales of goods, provision of

 services

73,226,146

59,086,031

Net increase in deposits from clients and

 placements from other banks

Net increase in borrowings from central bank

Net increase in contributions received from

 other financial institutions

Cash received from premiums of original

 insurance contracts

Net cash receipt from reinsurance operations

Net increase in reserve of the insured and

 investment

Net increase in financial assets held for trading

Cash received from interests, fees and commission

Net increase in contributions

Net increase in cash from repurchase operations

Refund of tax and levy

Other cash received relating to operating activities

2,168,068

1,524,519

 Subtotal of cash inflows of operating activities

75,394,214

60,610,550

Cash paid for goods purchased, services rendered

38,934,790

32,156,275

Net increase in loans and advances to clients

Net increase in deposits to central bank and

 to other banks

Cash payment of claims under original

 insurance contracts

Cash payment of interests, fees and commission

Cash payment of bonus paid to insurance policy

Cash paid to or on behalf of employees

7,200,571

5,174,381

Tax paid

5,266,213

2,485,454

Other cash paid in relation to operating activities

5,302,004

5,223,553

 Subtotal of cash outflows of operating activities

56,703,578

45,039,663

Net cash flows from operating activities

18,690,636

15,570,887

II. Cash flows from investing activities:

Cash received from investments

Cash from investment income

852,727

166,296

Net cash from disposal of fixed assets,

 intangible assets and other long term assets

494,152

227,261

Net cash from disposal of subsidiaries and

 other business units

1,669,177

18,170

Other cash received from investing activities

1,439,248

3,073,261

 Subtotal of cash inflows of investment activities

4,455,304

3,484,988

Cash paid to purchase of fixed assets,

 intangible assets and other long term assets

16,712,276

12,361,886

Cash paid to investments

225,569

Net increase in pledged loans

Net cash from subsidiaries and other business units

Cash payments relating to other investments

130,643

 Subtotal of cash outflows of investment activities

16,842,919

12,587,455

Net cash flows from investing activities

-12,387,615

-9,102,467

III. Cash flows from financing activities:

Cash received from investments

Including: Cash received from investments of

 minority shareholders through subsidiaries

Cash received from borrowings

22,901,906

24,025,525

Cash received from issue of debentures

Other cash relating to financing activities

 Subtotal of cash inflows of financing activities

22,901,906

24,025,525

Cash repaid to amounts borrowed

21,606,315

21,772,449

Cash payments for distribution of dividends,

 profits or interest expenses

3,384,556

1,110,549

Including: Dividends and profit paid to

 minority shareholders by subsidiaries

Other cash payments relating to financing activities

1,823,936

2,328,048

 Subtotal of cash outflows of financing activities

26,814,807

25,211,046

Net cash flows from financing activities

-3,912,901

-1,185,521

IV. Effect of exchange rate changes on cash and

 cash equivalents

-126,754

-47,157

V. Net increase in cash and cash equivalents

2,263,366

5,235,742

Add: Balance of cash and cash equivalents

 at the beginning of the period

14,204,591

2,636,821

VI. Balance of cash and cash equivalents at the end

 of the period

16,467,957

7,872,563

I. Cash flows from operating activities:

Cash received from sales of goods, provision of

 services

52,714,914

45,647,580

Refund of tax and levy

Other cash received relating to operating activities

972,843

918,841

 Subtotal of cash inflows of operating activities

53,687,757

46,566,421

Cash paid for goods purchased, services rendered

28,701,031

24,308,504

Cash paid to and on behalf of employees

4,427,420

3,715,999

Taxes paid

4,192,114

1,755,795

Other cash paid in relation to operating activities

3,811,472

3,945,359

 Subtotal of cash outflows of operating activities

41,132,037

33,725,657

Net cash flows from operating activities

12,555,720

12,840,764

II. Cash flows from investing activities:

Cash received from investments

Cash from investment income

87,246

58,965

Net cash from disposal of fixed assets, intangible

 assets and other long term assets

152,870

202,840

Net cash from disposal of subsidiaries and

 other business units

Other cash received from investing activities

126,913

150,310

 Subtotal of cash inflows of investment activities

367,029

412,115

Cash paid to purchase of fixed assets, intangible

 assets and other long term assets

11,428,133

9,472,950

Cash paid for investments

1,000,000

71,800

Net cash from subsidiaries and other business units

670,000

682,144

Cash payments relating to other investments

98,140

112,069

 Subtotal of cash outflows of investment activities

13,196,273

10,338,963

Net cash flows from investing activities

-12,829,244

-9,926,848

III. Cash flows from financing activities:

Cash received from investments

Cash received from borrowings

19,058,514

21,118,193

Cash received from issue of debentures

Other cash relating to financing activities

 Subtotal of cash inflows of financing activities

19,058,514

21,118,193

Cash repaid to amounts borrowed

15,960,240

17,071,106

Cash payments for distribution of dividends,

 profits or interest expenses

2,807,771

802,070

Other cash payments relating to financing activities

1,573,774

2,267,802

 Subtotal of cash outflows of financing activities

20,341,785

20,140,978

Net cash flows from financing activities

-1,283,271

977,215

IV. Effect of exchange rate changes on cash and

 cash equivalents

-74,278

-35,742

V. Net increase in cash and cash equivalents

-1,631,073

3,855,389

Add: Balance of cash and cash equivalents at the

 beginning of the period

11,501,617

1,089,515

VI. Balance of cash and cash equivalents at the end

 of the period

9,870,544

4,944,904