Last checked at 28 Oct 2008 16:15
The Stock Exchange of Hong Kong Limited takes no responsibility for the contents of this announcement, makes no representation as to its accuracy or completeness and expressly disclaims any liability whatsoever for any loss whatsoever arising from or in reliance upon the whole or any part of the contents of this announcement.
(a joint stock limited company incorporated in the People's Republic of China with limited liability)
(Stock Code: 753)
THIRD QUARTERLY REPORT 2008
CHANGE OF SUPERVISOR
http://www.rns-pdf.londonstockexchange.com/rns/8696G_1-2008-10-28.pdf
1. Third Quarterly Report 2008
This announcement is made pursuant to Rule 13.09 of the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited (the "Hong Kong Listing Rules").
§1 IMPORTANT NOTICE
1.1 The board of directors (the "Board"), the Supervisory Committee, as well as the directors, supervisors and senior management of Air China Limited (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 Director Ms. Wang Yinxiang was unable to attend the Board meeting due to a business engagement and appointed Chairman Mr. Kong Dong to attend and vote on her behalf.
Director Mr. Wang Shixiang was unable to attend the Board meeting due to a business engagement and appointed Director Mr. Cai Jianjiang to attend and vote on his behalf.
Director Mr. Ma Xulun was unable to attend the Board meeting due to a business engagement and appointed Director Mr. Fan Cheng to attend and vote on his behalf.
Director Christopher Dale Pratt was unable to attend the Board meeting due to a business engagement and appointed Director Mr. Chen Nan Lok, Philip to attend and vote on his behalf.
Independent Director Mr. Wu Zhipan was unable to attend the Board meeting due to a business engagement and appointed Independent Director Mr. Hu Hung Lick, Henry to attend and vote on his behalf.
Independent Director Mr. Jia Kang was unable to attend the Board meeting due to a business engagement and appointed Independent Director Mr. Zhang Ke to attend and vote on his behalf.
1.3 The Third Quarterly Financial Report of the Company is unaudited.
1.4 The Third Quarterly Report has been approved by the Board.
1.5 The Chairman of the Company Mr. Kong Dong, Chief Financial Officer Mr. Fan Cheng (person in charge of accounting function), and the General Manager of the Finance Department Mr. Li Youqiang hereby jointly declare that the financial statements set out in this quarterly report is true and complete.
§2 BASIC INFORMATION OF THE COMPANY
2.1 Major accounting data and financial ratios
In RMB
| At the end of the reporting period | At the end of pervious year | Increase/ (decrease) at the end of the reporting period as compared to the end of the pervious year | |
| (%) | |||
| Total assets (RMB'000) | 97,554,239 | 88,295,239 | 10.49 |
| Owner's equity (or shareholders' equity (RMB'000) | 29,157,896 | 31,288,095 | -6.81 |
| Net asset per share attributable to shareholders of the listed company (RMB) | 2.46 | 2.64 | -6.82 |
| From the beginning of the year to the end of the reporting period | Increase/ (decrease) over the corresponding period of previous year | |
| (%) | ||
| Net cash flows from operating activities (RMB'000) | 4,322,428 | -31.59 |
| Net cash flows from operating activities per share (RMB) | 0.36 | -31.55 |
| Reporting period | From the beginning of the year to the end of the reporting period | Increase/ (decrease) of this reporting period as compared to the corresponding period of previous year | |
| (July to September) | (January to September) | (%) | |
| Net profit attributable to shareholders of the listed company (RMB'000) | -1,939,570 | -657,253 | -188.67 |
| Basic earnings per share (RMB) | -0.163 | -0.055 | -188.59 |
| Basic earnings per share after exceptional gains and losses (RMB) | -0.167 | -0.092 | -192.52 |
| Diluted earnings per share (RMB) | n/a | n/a | n/a |
| Fully diluted return on net assets (%) | -6.65 | -2.25 | Decrease by 13.65 percentage points |
| Fully diluted return on net assets after exceptional gains and losses (%) | -6.81 | -3.75 | Decrease by 13.69 percentage points |
| Exceptional gain and loss items | From the beginning of the year to the end of the reporting period (January to September) (RMB'000) |
| Excluding method: Consolidated exclusion | |
| Gains and losses from disposal of non-current assets | 517,403 |
| Government grants (except for the grants which are closely related to the Company's business and have the standard amount and quantities in accordance with the national standard) attributable to gains and losses for the period | 165,760 |
| Other non-operating net income and expenses apart from those stated above | -126,062 |
| Effect of deduction of minority interest and income tax | -120,694 |
|
| |
| Total | 436,407 |
|
|
2.2 Total number of shareholders and top 10 holders of listed shares not subject to trading moratorium as at the end of the reporting period
| Unit: Share | |
| Total number of shareholders at the end of the reporting period | 583,957 |
Particulars of the top 10 holders of listed shares not subject to trading moratorium
| Name of shareholder (full name) | Number of listed shares not subject to trading moratorium held as at period end | Class of Shares |
| CATHAY PACIFIC AIRWAYS LIMITED | 2,217,617,455 | Overseas listed foreign shares |
| HKSCC NOMINEES LIMITED | 2,157,644,752 | Overseas listed foreign shares |
| China National Aviation Holding Company | 122,870,578 | RMB ordinary shares |
| Sinotrans Air Transportation Development Co., Ltd. | 80,000,000 | RMB ordinary shares |
| China General Technology (Group) Holding Limited | 30,000,000 | RMB ordinary shares |
| China Yangtze Power Co., Ltd. | 24,300,000 | RMB ordinary shares |
| Industrial and Commercial Bank of China Limited - SSE 50ETF (上證50交易型開放式指數證券 投資基金) | 22,872,770 | RMB ordinary shares |
| Three Gorges Finance Co., Ltd. (三峽財務有限責任公司) | 17,500,000 | RMB ordinary shares |
| China Power Finance Co., Ltd. (中國電力財務有限公司) | 14,120,000 | RMB ordinary shares |
| Tongde Securities Investment Fund | 12,320,667 | RMB ordinary shares |
| Bank of China - Jiashi Shanghai Shenzhen 300 Index Securities Investment Fund | 11,414,113 | RMB ordinary shares |
§3 SIGNIFICANT EVENTS
3.1 Significant changes of the principal accounting statements and financial indicators and reasons thereof
√ applicable □ not applicable
The Company recorded a loss of RMB 1,940 million (excluding minority interest) for the reporting period (July to September) as compared to the profit of RMB 2,187 million for the corresponding period in the previous year. This is primarily due to the decrease in demand in the aviation market and the fluctuations in crude oil prices. The rise in crude oil prices resulted in an increase of RMB 2,663 million, or 64%, in the jet fuel costs of the Company compared to the corresponding period in the previous year. The investment income of associate companies dropped by RMB 852 million compared to the corresponding period of previous year. Concurrently, due to the recent dramatic decline of international crude oil prices, the fair value of the fuel derivatives held by the Company was RMB -961 million as on 30 September 2008.
The aforementioned fair value of the fuel derivatives is subject to further changes in crude oil prices, the development of the financial market and the adjustment of positions in the financial market. In the event that crude oil prices remain at a relatively low level, the spot purchasing cost of aircraft fuel of the Company will drop correspondingly. In the event the oil prices rise, the negative valuation of the fair value of the fuel derivatives will turn around correspondingly. For the period of January to September 2008, the settled portion of the fuel derivatives of the Company generated accumulated realised revenue of RMB 378 million.
3.2 Analysis and explanation on the progress of significant events and their impact and resolutions
√ applicable □ not applicable
On 26 February 2007, the Eastern District Court of New York of the Federal Judiciary of the United States filed a civil summon against the Company and Air China Cargo, claiming that they, together with a number of other airlines, have violated certain antitrust regulations in respect of their air cargo operations in the United States by acting in concert in imposing excessive surcharges to impede the offering of discounts and allocating revenue and customers so as to achieve increasing, maintaining or stabilizing air cargo prices. As the status of the proceedings is still in its preliminary stage, the Directors of the Company are of the view that it is not possible to reasonably estimate the eventual outcome of the claim at this point and therefore no provision for this claim has been made at this stage.
On 9 October 2008, the 2008 first extraordinary general meeting of the Company approved the purchase of 20 Airbus 330 aircraft, 15 Boeing 777 aircraft and 30 Boeing 737 aircraft.
3.3 Performance of undertakings given by the Company, the shareholders and the effective controlling person
√ applicable □ not applicable
China National Aviation Holding Company and China National Aviation Corporation (Group) Limited gave an undertaking that it would not transfer, or nominate other persons to manage, the shares of the Company held by it, and none of these shares would be acquired by the Company, during the period of 36 months from the listing date of the A shares of the Company.
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 reasons therefore
□ applicable √ not applicable
3.5 Particulars of the Securities Investment
□ applicable √ not applicable
Air China Limited
Legal representative: Kong Dong
28 October 2008
§4 APPENDIX
4.1 Consolidated Balance Sheet
30 September 2008
Prepared by Air China Limited
Unit: RMB'000 (Unaudited)
| Items | Balance at the end of the period | Balance at the beginning of the year |
| Items | Balance at the end of the period | Balance at the beginning of the year |
| CURRENT ASSETS: | ||
| Cash and bank balances | 4,049,800 | 3,787,152 |
| rovisions on payables | ||
| Contributions received | ||
| Trading financial assets | 0 | 6,493 |
| Bills receivable | 2,658 | 1,599 |
| Accounts receivable | 3,083,810 | 2,812,327 |
| Prepayments | 366,946 | 311,784 |
| Premium receivable | ||
| Receivables on reinsurance | ||
| Provisions for reinsurance contracts | ||
| Interests receivable | ||
| Dividend receivable | ||
| Other receivables | 994,757 | 997,205 |
| Purchase of financial assets resold | ||
| Inventories | 962,454 | 755,340 |
| Non-current assets due within a year | ||
| Other current assets | ||
| Total current assets | 9,460,425 | 8,671,900 |
|
|
| |
| NON-CURRENT ASSETS: | ||
| Loans and advances | ||
| Available-for-sale financial assets | ||
| Held-to-maturity investment | 100,000 | |
| Long-term receivables | 268,145 | 255,340 |
| Long-term equity investment | 8,738,358 | 11,404,643 |
| Investment property | ||
| Fixed assets | 63,675,510 | 55,000,376 |
| Construction in progress | 11,860,668 | 10,967,888 |
| Construction materials | ||
| Disposal of fixed assets | ||
| Biological assets for production | ||
| Oil and gas assets | ||
| Intangible assets | 1,745,472 | 1,396,620 |
| Development expenses | ||
| Goodwill | 511,309 | 131,945 |
| Long-term deferred expenses | 133,267 | 80,684 |
| Deferred income tax assets | 1,061,085 | 385,843 |
| Other non-current assets | ||
| Total non-current assets | 88,093,814 | 79,623,339 |
| Total assets | 97,554,239 | 88,295,239 |
|
|
| |
| CURRENT LIABILITIES: | ||
| Short-term borrowings | 7,947,930 | 6,546,088 |
| Borrowings from central bank | ||
| Deposits from clients and placements from other banks | ||
| Contributions made | ||
| Trading financial liabilities | 1,003,772 | 14,826 |
| Bills payable | ||
| Accounts payable | 8,283,000 | 6,338,341 |
| Domestic air traffic liabilities | 797,556 | 666,208 |
| International air traffic liabilities | 1,642,151 | 1,888,548 |
| Receipts in advance | 69,963 | 53,778 |
| Financial assets sold under agreements to repurchase | ||
| Fees and commission payable | ||
| Salaries and wages payable | 368,048 | 254,073 |
| Taxes payable | 456,215 | 1,677,332 |
| Interests payable | 301,760 | 273,824 |
| Dividend payable | ||
| Other payables | 2,008,598 | 2,035,038 |
| Amounts payable on reinsurance | ||
| Provisions on insurance contracts | ||
| Brokerage payable | ||
| Underwriting fees payable | ||
| Non-current liabilities due within a year | 7,822,435 | 6,344,212 |
| Other current liabilities | ||
| Total current liabilities | 30,702,228 | 26,092,268 |
| NON-CURRENT LIABILITIES: | ||
| Long-term borrowings | 15,932,450 | 12,938,092 |
| Debentures payable | 3,000,000 | 3,000,000 |
| Long-term payables | 1,342,848 | 1,301,844 |
| Finance leases payables | 15,599,558 | 13,328,193 |
| Estimated liabilities | 217,197 | 191,533 |
| Deferred income tax liabilities | 1,119,510 | 5,000 |
| Other non-current liabilities | ||
| Total non-current liabilities | 37,211,563 | 30,764,662 |
| Total liabilities | 67,913,791 | 56,856,930 |
| OWNER'S EQUITY (OR SHAREHOLDERS' EQUITY): | ||
| Paid-up capital (or equity) | 12,251,362 | 12,251,362 |
| Capital surplus | 13,273,626 | 13,135,900 |
| Less: Treasury shares | 1,353,714 | 1,283,492 |
| Surplus reserves | 1,563,915 | 1,299,214 |
| General risk provisions | ||
| Profit available for appropriation | 5,128,903 | 6,888,843 |
| Currency translation differences | -1,706,196 | -1,003,732 |
| Total equities attributable to owners of Company | 29,157,896 | 31,288,095 |
| Minority interests | 482,552 | 150,214 |
| Total owners' equity | 29,640,448 | 31,438,309 |
| Total liabilities and owners' equity | 97,554,239 | 88,295,239 |
Legal representative of the Company: Kong Dong
Person in charge of accounting function: Fan Cheng
Person in charge of accounting department: Li Youqiang
Balance Sheet of the Company
30 September 2008
Prepared by Air China Limited
Unit: RMB'000 (Unaudited)
| Items | Balance at the end of the period | Balance at the beginning of the year |
| Items | Balance at the end of the period | Balance at the beginning of the year |
| CURRENT ASSETS: | ||
| Cash and bank balances | 1,162,104 | 1,351,373 |
| Trading financial assets | 0 | 6,493 |
| Bills receivable | 965 | 1,599 |
| Accounts receivable | 2,641,618 | 2,446,047 |
| Prepayments | 309,368 | 264,840 |
| Interests receivable | ||
| Dividend receivable | ||
| Other receivables | 1,174,657 | 984,279 |
| Inventories | 889,408 | 689,871 |
| Non-current liabilities due within a year | ||
| Other current assets | ||
| Total current assets | 6,178,120 | 5,744,502 |
|
|
| |
| NON-CURRENT ASSETS: | ||
| Available-for-sale financial assets | ||
| Held-to-maturity investment | 100,000 | |
| Long-term receivables | 194,088 | 192,848 |
| Long-term equity investment | 14,030,646 | 13,804,257 |
| Investment property | ||
| Fixed assets | 60,506,589 | 54,672,583 |
| Construction in progress | 11,316,229 | 10,967,675 |
| Construction materials | ||
| Disposal of fixed assets | ||
| Biological assets for production | ||
| Oil and gas assets | ||
| Intangible assets | 1,549,851 | 1,396,527 |
| Development expenses | ||
| Goodwill | ||
| Long-term deferred expenses | 125,651 | 79,307 |
| Deferred income tax assets | 1,037,117 | 372,000 |
| Other non-current assets | ||
| Total non-current assets | 88,860,171 | 81,485,197 |
| Total assets | 95,038,291 | 87,229,699 |
|
|
| |
| CURRENT LIABILITIES: | ||
| Short-term borrowings | 7,772,862 | 6,533,088 |
| Trading financial liabilities | 1,003,772 | 6,819 |
| Bills payable | ||
| Accounts payable | 7,038,540 | 5,750,093 |
| Domestic air traffic liabilities | 796,534 | 666,208 |
| International air traffic liabilities | 1,549,132 | 1,761,626 |
| Receipts in advance | 60,620 | 27,235 |
| Salaries and wages payable | 314,026 | 248,977 |
| Taxes payable | 435,360 | 1,667,134 |
| Interests payable | 289,284 | 273,824 |
| Dividend payable | ||
| Other payables | 1,741,267 | 1,881,640 |
| Non-current liabilities due within a year | 7,726,297 | 6,344,212 |
| Other current liabilities | ||
| Total current liabilities | 28,727,694 | 25,160,856 |
|
|
| |
| NON-CURRENT LIABILITIES: | ||
| Long-term borrowings | 15,017,639 | 12,938,092 |
| Debentures payable | 3,000,000 | 3,000,000 |
| Long-term payables | 1,174,275 | 1,098,856 |
| Finance leases payables | 15,599,561 | 13,328,193 |
| Estimated liabilities | 214,802 | 191,533 |
| Deferred income tax liabilities | 1,119,510 | 5,000 |
| Other non-current liabilities | ||
| Total non-current liabilities | 36,125,787 | 30,561,674 |
| Total liabilities | 64,853,481 | 55,722,530 |
|
|
| |
| OWNER'S EQUITY (OR SHAREHOLDERS' EQUITY): | ||
| Paid-up capital (or equity) | 12,251,362 | 12,251,362 |
| Capital surplus | 14,309,947 | 14,280,532 |
| Less: Treasury shares | ||
| Surplus reserves | 1,554,324 | 1,289,624 |
| Profit available for appropriation | 2,069,177 | 3,685,651 |
| Total owner's equity (or shareholders' equity) | 30,184,810 | 31,507,169 |
| Total liabilities and owner's equity (or shareholders' equity) | 95,038,291 | 87,229,699 |
Legal representative: Kong Dong
Person in charge of accounting function: Fan Cheng
Person in charge of accounting department: Li Youqiang
4.2 Consolidated Income Statement
Unit: RMB'000 (Unaudited)
Prepared by Air China Limited
| Items | Amounts for the period | Amounts for the corresponding period of previous year | Amounts for the period from the beginning of the year to the end of the reporting period | Amounts for the period from the beginning of the previous year to the end of the previous reporting period | |
| (July to September) | (July to September) | (January to September) | (January to September) | ||
| Items | Amounts for the period | Amounts for the corresponding period of previous year | Amounts for the period from the beginning of the year to the end of the reporting period | Amounts for the period from the beginning of the previous year to the end of the previous reporting period | |
| (July to September) | (July to September) | (January to September) | (January to September) | ||
| I. | Total revenue from operations | 13,915,589 | 14,471,739 | 39,675,827 | 37,215,758 |
| Including: Operating income | 13,915,589 | 14,471,739 | 39,675,827 | 37,215,758 | |
| Interest income | |||||
| Premium earned | |||||
| Fees and commission income | |||||
| II. | Total operating cost | 15,093,752 | 12,134,144 | 40,138,231 | 33,790,778 |
| Including: Operating costs | 13,323,677 | 10,349,626 | 36,457,808 | 29,461,244 | |
| 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 surcharges | 338,713 | 359,483 | 962,509 | 905,573 | |
| Selling expenses | 762,151 | 920,313 | 2,372,612 | 2,290,993 | |
| Administrative expenses | 356,632 | 259,323 | 1,029,935 | 760,775 | |
| Finance expenses | 302,789 | 245,399 | -693,543 | 372,193 | |
| Impairment loss of assets | 9,790 | 8,910 | |||
| Add: Gains from changes in fair value (loss is represented by "-" sign) | -1,063,964 | -58,468 | -979,078 | 195,390 | |
| Investment income (loss is represented by "-" sign) | -96,704 | 552,592 | 517,066 | 906,866 | |
| Including: Gains arising from investments in associated companies and joint ventures | -261,390 | 552,368 | -327,848 | 904,392 | |
| Exchange gains (loss is represented by "-" sign) | |||||
| III. | Profit from operations (loss is represented by "-" sign) | -2,338,831 | 2,831,719 | -924,416 | 4,527,236 |
| Add: Non-operating income | 75,803 | 87,447 | 222,202 | 163,775 | |
| Less: Non-operating expenses | 7,016 | 31,610 | 142,124 | 103,452 | |
| Including: Net loss arising from disposal of non-current assets | 1,683 | 324 | 20,643 | 44,572 | |
| IV. | Total profit (loss is represented by "-" sign) | -2,270,044 | 2,887,556 | -844,338 | 4,587,559 |
| Less: Income tax expenses | -282,047 | 700,677 | -65,098 | 1,177,619 | |
| V. | Net profit (loss is represented by "-" sign) | -1,987,997 | 2,186,879 | -779,240 | 3,409,940 |
| Net profits attributable to owners of Company | -1,939,570 | 2,187,417 | -657,253 | 3,487,714 | |
| Gains or losses from minority interests | -48,427 | -538 | -121,987 | -77,774 | |
| VI. | Earnings per share: | ||||
| (I) Basic | -0.163 | 0.184 | -0.055 | 0.287 | |
| (II) Diluted | n/a | n/a | n/a | n/a | |
Legal representative of the Company: Kong Dong
Person in charge of accounting function: Fan Cheng
Person in charge of accounting department: Li Youqiang
Income Statement of the Company
Unit: RMB'000 (Unaudited)
Prepared by Air China Limited
| Items | Amounts for the period | Amounts for the corresponding period of previous year | Amounts for the period from the beginning of the year to the end of the reporting period | Amounts for the period from the beginning of the previous year to the end of the previous reporting period | |
| (July to September) | (July to September) | (January to September) | (January to September) | ||
| I. | Revenue from operations | 12,223,040 | 13,710,267 | 34,747,989 | 35,134,830 |
| Less: Operating cost | 11,715,439 | 9,598,349 | 31,760,140 | 27,369,864 | |
| Business taxes and other surcharges | 313,917 | 357,987 | 885,730 | 901,070 | |
| Selling expenses | 728,606 | 926,598 | 2,247,632 | 2,303,958 | |
| Administrative expenses | 263,116 | 285,190 | 742,813 | 707,745 | |
| Finance expenses | 305,309 | 259,070 | -606,507 | 428,059 | |
| Impairment loss of assets | |||||
| Add: Gains from changes in fair value (loss is represented by "-"sign) | -1,076,775 | -52,325 | -979,078 | 187,721 | |
| Investment income (loss is represented by "-" sign) | 156,255 | 135,833 | 395,388 | -10,201 | |
| Including: Gains arising from investments in associated companies and joint ventures | -16,486 | 135,610 | 18,246 | -13,695 | |
| II. | Profit from operations (loss is represented by "-" sign) | -2,023,867 | 2,366,581 | -865,509 | 3,601,654 |
| Add: Non-operating income | 62,254 | 89,833 | 205,493 | 163,558 | |
| Less: Non-operating expenses | 6,851 | 31,610 | 141,522 | 103,448 | |
| Including: Net loss arising from disposal of non-current assets | 1,559 | 331 | 20,510 | 44,572 | |
| III. | Total profit (loss is represented by "-" sign) | -1,968,464 | 2,424,804 | -801,538 | 3,661,764 |
| Less: Income tax expenses | -299,608 | 686,940 | -92,473 | 1,163,907 | |
| IV. | Net profit (loss is represented by "-" sign) | -1,668,856 | 1,737,864 | -709,065 | 2,497,857 |
Legal representative of the Company: Kong Dong
Person in charge of accounting function: Fan Cheng
Person in charge of accounting department: Li Youqiang
4.3 Consolidated Cash Flow Statement
January to September 2008
Unit: RMB'000 (Unaudited)
Prepared by Air China Limited
| Items | Amounts for the period from the beginning of the year to the end of the reporting period | Amounts for the period from the beginning of the previous year to the end of the previous reporting period | |
| (January to September) | (January to September) | ||
| Items | Amounts for the period from the beginning of the year to the end of the reporting period | Amounts for the period from the beginning of the previous year to the end of the previous reporting period | |
| (January to September) | (January to September) | ||
| I. | Cash flows from operating activities: | ||
| Cash received from sales of goods, provision of services | 39,023,445 | 36,917,540 | |
| 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 trading financial assets | |||
| Cash received from interests, fees and commission | |||
| Net increase in contributions | |||
| Net increase in cash from repurchase operations | |||
| Refund of tax and levy | 36,747 | 51,108 | |
| Other cash received relating to operating activities | 1,005,724 | 687,986 | |
| Subtotal of cash inflows of operating activities | 40,065,916 | 37,656,634 | |
| Cash paid for goods purchased, services rendered | 26,439,750 | 22,905,509 | |
| 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 | 3,365,686 | 3,108,960 | |
| Tax paid | 2,678,664 | 2,311,634 | |
| Other cash paid in relation to operating activities | 3,259,388 | 3,011,894 | |
| Subtotal of cash outflows of operating activities | 35,743,488 | 31,337,997 | |
| Net cash flows from operating activities | 4,322,428 | 6,318,637 | |
| II. | Cash flows from investing activities: | ||
| Cash received from investments | |||
| Cash from investment income | 418,832 | 414,773 | |
| Net cash from disposal of fixed assets, intangible assets and other long-term assets | 928,165 | 97,145 | |
| Net cash from disposal of subsidiaries and other business units | 21,939 | ||
| Other cash received from investing activities | 722,983 | 2,750,874 | |
| Subtotal of cash inflows of investment activities | 2,069,980 | 3,284,731 | |
| Cash paid to purchase of fixed assets, intangible assets and other long-term assets | 5,753,416 | 6,454,489 | |
| Cash paid to investments | 978,502 | 3,032,955 | |
| Net increase in pledged loans | |||
| Net cash from subsidiaries and other business units | |||
| Cash payments relating to other investments | 2,515,457 | ||
| Subtotal of cash outflows of investment activities | 6,731,918 | 12,002,901 | |
| Net cash flows from investing activities | -4,661,938 | -8,718,170 | |
| III. | Cash flows from financing activities: | ||
| Cash received from investments | |||
| Including: Cash received from investments of minority shareholders through subsidiaries | |||
| Cash received from borrowings | 14,375,233 | 15,898,309 | |
| Cash received from issue of debentures | |||
| Other cash relating to financing activities | |||
| Subtotal of cash inflows of financing activities | 14,375,233 | 15,898,309 | |
| Cash repaid to amounts borrowed | 9,303,104 | 10,608,798 | |
| Cash payments for distribution of dividends, profits or interest expenses | 2,147,033 | 2,023,325 | |
| Including: Dividends and profit paid to minority shareholders by subsidiaries | |||
| Other cash payments relating to financing activities | 2,232,407 | 2,699,711 | |
| Subtotal of cash outflows of financing activities | 13,682,544 | 15,331,834 | |
| Net cash flows from financing activities | 692,689 | 566,475 | |
| IV. | Effect of exchange rate changes on cash and cash equivalents | -81,241 | -23,976 |
| V. | Net increase in cash and cash equivalents | 271,938 | -1,857,034 |
| Add: Balance of cash and cash equivalents at the beginning of the period | 3,668,528 | 3,200,563 | |
| VI. | Balance of cash and cash equivalents at the end of the period | 3,940,466 | 1,343,529 |
Legal representative of the Company: Kong Dong
Person in charge of accounting function: Fan Cheng
Person in charge of accounting department: Li Youqiang
Cash Flow Statement of the Company
January to September 2008
Unit: RMB'000 (Unaudited)
Prepared by Air China Limited
| Items | Amounts for the period from the beginning of the year to the end of the reporting period | Amounts for the period from the beginning of the previous year to the end of the previous reporting period | |
| (January to September) | (January to September) | ||
| Items | Amounts for the period from the beginning of the year to the end of the reporting period | Amounts for the period from the beginning of the previous year to the end of the previous reporting period | |
| (January to September) | (January to September) | ||
| I. | Cash flows from operating activities: | ||
| Cash received from sales of goods, provision of services | 34,326,429 | 34,408,263 | |
| Refund of tax and levy | 36,747 | 51,108 | |
| Other cash received relating to operating activities | 739,139 | 520,643 | |
| Subtotal of cash inflows of operating activities | 35,102,315 | 34,980,014 | |
| Cash paid for goods purchased, services rendered | 22,927,025 | 20,830,843 | |
| Cash paid to or on behalf of employees | 2,934,260 | 2,780,008 | |
| Tax paid | 2,552,144 | 2,201,988 | |
| Other cash paid in relation to operating activities | 2,569,851 | 2,734,361 | |
| Subtotal of cash outflows of operating activities | 30,983,280 | 28,547,200 | |
| Net cash flows from operating activities | 4,119,035 | 6,432,814 | |
| II. | Cash flows from investing activities: | ||
| Cash received from investments | |||
| Cash from investment income | 1,053 | 21,572 | |
| Net cash from disposal of fixed assets, intangible assets and other long-term assets | 51,388 | 97,108 | |
| Net cash from disposal of subsidiaries and other business units | 21,939 | ||
| Other cash received from investing activities | 395,759 | 2,612,845 | |
| Subtotal of cash inflows of investment activities | 448,200 | 2,753,464 | |
| Cash paid to purchase of fixed assets, intangible assets and other long-term assets | 5,156,863 | 6,446,911 | |
| Cash paid to investments | 121,498 | 3,032,955 | |
| Net cash from subsidiaries and other business units | |||
| Cash payments relating to other investments | 2,127,687 | ||
| Subtotal of cash outflows of investment activities | 5,278,361 | 11,607,553 | |
| Net cash flows from investing activities | -4,830,161 | -8,854,089 | |
| III. | Cash flows from financing activities: | ||
| Cash received from investments | |||
| Cash received from borrowings | 14,200,165 | 15,773,310 | |
| Other cash relating to financing activities | |||
| Subtotal of cash inflows of financing activities | 14,200,165 | 15,773,310 | |
| Cash repaid to amounts borrowed | 9,268,735 | 10,558,798 | |
| Cash payments for distribution of dividends, profits or interest expenses | 2,121,079 | 2,021,817 | |
| Other cash payments relating to financing activities | 2,232,406 | 2,621,444 | |
| Subtotal of cash outflows of financing activities | 13,622,220 | 15,202,059 | |
| Net cash flows from financing activities | 577,945 | 571,251 | |
| IV. | Effect of exchange rate changes on cash and cash equivalents | -56,086 | 27,034 |
| V. | Net increase in cash and cash equivalents | -189,267 | -1,822,990 |
| Add: Balance of cash and cash equivalents at the beginning of the period | 1,348,887 | 2,500,402 | |
| VI. | Balance of cash and cash equivalents at the end of the period | 1,159,620 | 677,412 |
Legal representative of the Company: Kong Dong
Person in charge of accounting function: Fan Cheng
Person in charge of accounting department: Li Youqiang
2. CHANGE OF SUPERVISOR
The Board of the Company annuonces that Mr. He Chaofan has been nominated by China National Aviation Holding Company as a shareholder representative supervisor for the second session of the Supervisory Committee of the Company subject to the approval of the shareholders of the Company. Accordingly, Mr. Liao Wei shall cease to be the shareholder representative supervisor with effect from the date of approval by the shareholders of the Company of Mr. He's appointment.
Mr. He Chaofan, aged 46, a senior accountant, graduated from the Civil Aviation University of China majoring in civil aviation planning and finance. Mr. He served as an accountant at the Beijing Administrative Bureau of Civil Aviation Administration of China, and served in various positions in Air China Limited including that of an accountant, section chief, deputy head and head of the Finance Department and director and general manager of the Revenue Accounting Department of Air China Limited. From March 2003 to October 2008, he served as the general manager and deputy party secretary of China National Aviation Finance Co., Ltd.. He was appointed the general manager of the Finance Department of China National Aviation Holding Company in October 2008.
Save as disclosed above, Mr. He Chaofan has not held any directorship in any other listed companies or taken up a post in any affiliated companies of the Company in the past three years, and does not have any relationship with any other director, senior management, substantial shareholder or controlling shareholder of the Company.
Mr. He Chaofan does not have any equity interest in the Company within the meaning of Part XV of the Securities and Futures Ordinance (Cap. 571 of the Laws of Hong Kong). There is no information to be disclosed on items from (h) to (v) in Rule 13.51(2) of the Listing Rules. No other matter needs to be brought to the attention of the Shareholders in respect of the Company and its directors and supervisors of the Company.
Mr. He Chaofan will not receive any emolument for serving as a supervisor of the Company. The term of his office is no more than three years, which shall commence upon the shareholders' approval to the appointment and shall end upon the third session of the Supervisory Committee being elected.
By order of the Board
Air China Limited
Huang Bin Tam Shuit Mui
Joint Company Secretaries
Beijing, 28 October 2008
As at the date of this announcement, the Directors of the Company are Messrs Kong Dong, Wang Yinxiang, Wang Shixiang, Ma Xulun, Christopher Dale Pratt, Chen Nan Lok, Philip, Cai Jianjiang, Fan Cheng, Hu Hung Lick, Henry*, Wu Zhipan*, Zhang Ke* and Jia Kang*.
* Independent non-executive Director of the Company