Last checked at 31 Oct 2018 07:00
Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.
中國國際航空股份有限公司
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 2018
This announcement is made pursuant to Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) and Rule 13.09 and 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") held a meeting of the Board on 30 October 2018 and passed the resolution approving the third quarterly report 2018 of the Company for the nine months ended 30 September 2018 (the "Reporting Period" or "Period") prepared in accordance with the PRC Accounting Standards.
1. IMPORTANT NOTICE
1.1 The Board and the supervisory committee of the Company together with the directors, supervisors and the senior management of the Company guarantee that the contents of the quarterly report are true, accurate and complete and do not contain any false representation, misleading statement or material omission, and shall jointly and severally accept legal liability.
1.2 Particulars of absent directors
Name of absent director | Position of absent director | Reason(s) for absence | Name of proxy |
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John Robert Slosar | Director | Business engagement | Cai Jianjiang |
1.3 Mr. Cai Jianjiang (legal representative and the Chairman of the Board of the Company), Mr. Xiao Feng (person in charge of accounting function and the Chief Accountant), and Mr. Zhan Zhong (person in charge of accounting department (accounting superintendent) and the general manager of finance department) hereby guarantee that the financial statements set out in this quarterly report are true, accurate and complete.
1.4 The third quarterly report of the Company is unaudited.
2. BASIC INFORMATION OF THE COMPANY
2.1 Major financial data
Unit: RMB'000
| At the end of the Reporting Period | At the end of the previous year | Increase/decrease at the end of the Reporting Period as compared to the end of the previous year |
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Total assets | 252,579,331 | 235,717,816 | 7.15 |
Net asset attributable to shareholders of the listed company | 93,932,818 | 86,120,794 | 9.07 |
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| For the period from the beginning of the year to the end of the Reporting Period (January to September) | For the corresponding period of the previous year (January to September) | Increase/decrease as compared to the corresponding period of the previous year |
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| (%) |
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Net cash flows from operating activities | 24,614,813 | 18,860,654 | 30.51 |
| For the period from the beginning of the year to the end of the Reporting Period (January to September) | For the corresponding period of the previous year (January to September) | Increase/decrease as compared to the corresponding period of the previous year |
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| (%) |
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Revenue | 102,880,095 | 91,782,079 | 12.09 |
Net profit attributable to shareholders of the listed company | 6,937,408 | 8,278,508 | -16.20 |
Net profit attributable to shareholders of the listed company after deducting non-recurring profits and losses | 6,526,228 | 8,150,110 | -19.92 |
Weighted average return on net assets (%) | 7.68 | 10.34 | Decrease by 2.66 ppts |
Basic earnings per share (RMB per share) | 0.51 | 0.62 | -17.74 |
Diluted earnings per share (RMB per share) | N/A | N/A | - |
Non-recurring profits and losses
£ Applicable þ Not applicable
Unit: RMB'000
Items | Amounts for the Period (July to September) | Amounts for the period from the beginning of the year to the end of the Reporting Period (January to September) |
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Gains or losses on disposal of non-current assets | 6,347 | 75,606 |
Government subsidies recorded in the income statement for the current period (exclusive of government subsidies which are closely related to the normal operating business of the Company and consistently entitled pursuant to unified standard quota or amount under the government policy) | 96,167 | 310,531 |
Gains or 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) | -3,273 | 4,879 |
Reversal of provision for impairment of receivables which are individually tested for impairment | 100,000 | 289,635 |
Other non-operating income and expenses not covered above | -29,232 | -11,792 |
Profit or loss on disposal of long-term equity investments | 0 | 161,894 |
Effect of non-controlling shareholders' interests (after taxation) | -50,118 | -211,882 |
Effect of income tax | -42,260 | -207,691 |
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Total | 77,631 | 411,180 |
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2.2 Total number of shareholders, the top 10 shareholders and the top 10 holders of tradable shares (or shares not subject to selling restrictions) as at the end of the Reporting Period
Unit: share
Total number of shareholders | 169,527 | |||||
Particulars of the top 10 shareholders | ||||||
Name of shareholder (full name) | Number of shares held as at the end of the Period | Shareholding percentage | Number of shares held subject to selling restrictions | Shares pledged or frozen | Nature of shareholder | |
Status | Number | |||||
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China National Aviation Holding Corporation Limited | 5,952,236,697 | 40.98 | 513,478,818 | Frozen | 127,445,536 | State-owned legal person |
Cathay Pacific Airways Limited | 2,633,725,455 | 18.13 | 0 | Nil | 0 | Foreign legal person |
HKSCC NOMINEES LIMITED | 1,687,732,499 | 11.62 | 0 | Unknown |
| Foreign legal person |
China National Aviation Corporation (Group) Limited | 1,556,334,920 | 10.72 | 0 | Frozen | 36,454,464 | Foreign legal person |
China National Aviation Fuel Group Corporation | 468,485,702 | 3.23 | 0 | Nil | 0 | State-owned legal person |
China Securities Finance Corporation Limited | 310,201,830 | 2.14 | 0 | Nil | 0 | State-owned legal person |
Zhongyuan Equity Investment Management Co., Ltd. | 256,739,405 | 1.77 | 0 | Unknown | 256,739,405 | State-owned legal person |
China Structural Reform Fund Co., Ltd. | 115,565,509 | 0.80 | 0 | Nil | 0 | State-owned legal person |
National Social Security Fund 118 | 58,964,678 | 0.41 | 0 | Nil | 0 | State-owned legal person |
Hong Kong Securities Clearing Company Ltd. | 49,292,604 | 0.34 | 0 | Unknown |
| Foreign legal person |
Particulars of the top 10 shareholders not subject to selling restrictions | |||
Name of shareholder | Number of tradable shares held not subject to selling restrictions | Class and number of shares | |
Class | Number | ||
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China National Aviation Holding Corporation Limited | 5,438,757,879 | RMB ordinary shares | 5,438,757,879 |
Cathay Pacific Airways Limited | 2,633,725,455 | Overseas listed foreign shares | 2,633,725,455 |
HKSCC NOMINEES LIMITED | 1,687,732,499 | Overseas listed foreign shares | 1,687,732,499 |
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 | 468,485,702 | RMB ordinary shares | 468,485,702 |
China Securities Finance Corporation Limited | 310,201,830 | RMB ordinary shares | 310,201,830 |
Zhongyuan Equity Investment Management Co., Ltd. | 256,739,405 | RMB ordinary shares | 256,739,405 |
China Structural Reform Fund Co., Ltd. | 115,565,509 | RMB ordinary shares | 115,565,509 |
National Social Security Fund 118 | 58,964,678 | RMB ordinary shares | 58,964,678 |
Hong Kong Securities Clearing Company Ltd. | 49,292,604 | RMB ordinary shares | 49,292,604 |
Explanation 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 Corporation Limited. Accordingly, China National Aviation Holding Corporation Limited is directly and indirectly interested in 51.70% of the shares of the Company. | ||
Explanation of holders of preference shares with restored voting rights and number of shares held | Nil | ||
1. 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 1,687,732,499 H shares held by it in the Company do not include the 166,852,000 H shares held by it as nominee of China National Aviation Corporation (Group) Limited.
2. According to the "Implementation Measures on Partial Transfer of State-owned Shares to the National Social Security Fund in the Domestic Securities Market" (Cai Qi [2009] No. 94) (《境內證券市場轉持部分國有股充實全國社會保障基金實施辦法》(財企[2009]94號)) and the Notice ([2009] No. 63) jointly issued by the Ministry of Finance, the State-owned Assets Supervision and Administration Commission of the State Council, China Securities Regulatory Commission and the National Council for Social Security Fund, 127,445,536 shares and 36,454,464 shares held by China National Aviation Holding Corporation Limited, the controlling shareholder of the Company, and China National Aviation Corporation (Group) Limited respectively are frozen at present.
2.3 Total number of holders of preference shares, the top 10 holders of preference shares and the top 10 holders of preference shares not subject to selling restrictions as at the end of the Reporting Period
£ Applicable þ Not applicable
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 þ Not applicable
Unit: RMB'000
Items in consolidated balance sheet | Balance at the end of the Reporting Period | Balance at the end of the previous year | Amount of Change | Percentage | Reasons for Change |
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Cash and bank | 9,645,275 | 6,260,074 | 3,385,201 | 54.08 | Mainly due to the relatively abundant cash flows of the Group in the peak season |
Bills receivable and accounts receivable | 5,247,723 | 3,490,775 | 1,756,948 | 50.33 | Mainly due to the impact of the increase in sales volume |
Prepayments | 1,301,803 | 3,113,262 | -1,811,459 | -58.19 | Mainly due to the decrease in prepayments for jet fuel during the Period |
Inventories | 2,523,405 | 1,535,769 | 987,636 | 64.31 | Mainly due to the increase in airplane consumable and work-in-process |
Held-for-sale assets | 32,689 | 283,562 | -250,873 | -88.47 | Mainly due to the disposal of certain aircraft held for sale during the Period |
Short-term bonds payable | 3,384,130 | 1,199,450 | 2,184,680 | 182.14 | Mainly due to the issue of ultra-short-term commercial papers by the Group during the Period |
Taxes payable | 1,625,701 | 2,361,253 | -735,552 | -31.15 | Mainly due to the enterprise income taxes paid by the Group during the Period |
Long-term loans | 4,792,769 | 7,608,289 | -2,815,520 | -37.01 | Mainly due to the impact of the amount of new loans raised being less than the amount of loans repaid during the Period |
Other comprehensive income | 151,074 | -1,693,743 | 1,844,817 | 108.92 | Mainly due to the increase in exchange difference on translation of financial statements in foreign currency during 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 corresponding period of the previous year (January to September) | Amount of Change | Percentage | Reasons for Change |
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Finance expenses | 4,522,277 | 66,338 | 4,455,939 | 6,717.02 | Mainly due to the increase in the net exchange loss during the Reporting Period as compared to the corresponding period of the previous year |
Investment income | 974,517 | -252,959 | 1,227,476 | 485.25 | Mainly due to the increase in the net profit of the Group's associates as compared to the corresponding period of the previous year |
Income taxation | 1,947,312 | 2,927,601 | -980,289 | -33.48 | Mainly due to the decrease in taxable income during the Reporting Period as compared to the corresponding period of the previous year |
Items in consolidated cash flow statement | For the period from the beginning of the year to the end of the Reporting Period (January to September) | For the corresponding period of the previous year (January to September) | Amount of Change | Percentage | Reasons for Change |
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Other cash received relating to operating activities | 5,017,851 | 3,771,018 | 1,246,833 | 33.06 | Mainly due to the year-on-year increase in the Group's revenue from non-principal businesses during the Period |
Net cash proceeds from disposal of fixed assets and intangible assets | 367,240 | 2,536,996 | -2,169,75 | -85.52 | Mainly due to the year-on-year decrease in cash inflows from disposal of aircraft during the Period |
Cash received from issue of debentures | 6,100,000 | 600,000 | 5,500,000 | 916.67 | Mainly due to the year-on-year increase in issue of debentures during the Period |
Cash paid under the finance lease | 5,791,932 | 4,441,728 | 1,350,204 | 30.40 | Mainly due to the year-on-year increase in repayment of the amount payable under the finance lease during the Period |
3.2 Analysis and explanation on the progress of significant events and their impact and resolutions
£ Applicable þ Not applicable
On 30 August 2018, upon approval at the seventh meeting of the fifth session of the Board of the Company, the Company entered into an equity transfer agreement with China National Aviation Capital Holding Co., Ltd., a controlling subsidiary of China National Aviation Holding Corporation Limited. Pursuant to the agreement, the Company has conditionally agreed to sell and Capital Holding has conditionally agreed to purchase 51% equity interests in Air China Cargo at a consideration of RMB2,438,837,520. Upon completion of the Disposal, Air China Cargo will cease to be a controlling subsidiary of the Company. The Disposal has been approved at the 2018 first extraordinary general meeting of the Company on 19 October 2018.
3.3 Undertakings that were failed to fulfil as scheduled during the Reporting Period
£ Applicable þ Not applicable
3.4 Warnings and explanations with regard to forecast of a probable loss in respect of the accumulative net profits from the beginning of the year to the end of the next reporting period or any significant changes as compared with that of the corresponding period of previous year
£ Applicable þ Not applicable
4. APPENDIX
4.1 Financial Statements
CONSOLIDATED BALANCE SHEET
30 September 2018
Prepared by Air China Limited
Unit: RMB'000 (Unaudited)
Items | Balance at the end of the Period | Balance at the end of the previous year |
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CURRENT ASSETS: |
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Cash and bank | 9,645,275 | 6,260,074 |
Provisions on payables |
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Contributions made |
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Financial assets held-for-trading | 124,363 | - |
Financial assets at fair value through profit or loss | - | 19,938 |
Derivative financial assets |
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Bills receivable and accounts receivable | 5,247,723 | 3,490,775 |
Including: Bills receivable | 224 | 348 |
Accounts receivable | 5,247,499 | 3,490,427 |
Prepayments | 1,301,803 | 3,113,262 |
Premium receivable |
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Receivables on reinsurance |
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Provisions for reinsurance contracts |
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Other receivables | 1,878,196 | 2,009,253 |
Including: Interest receivable |
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Dividend receivable |
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Purchase of financial assets resold |
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Inventories | 2,523,405 | 1,535,769 |
Contract assets |
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Held-for-sale assets | 32,689 | 283,562 |
Non-current assets due within a year | - | 10,000 |
Other current assets | 5,173,830 | 4,036,700 |
Total current assets | 25,927,284 | 20,759,333 |
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NON-CURRENT ASSETS: |
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Loans and advances |
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Available-for-sale financial assets | - | 1,336,996 |
Debt investments |
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Other debt investments | 856,377 | - |
Long-term receivables | 809,181 | 784,339 |
Long-term equity investments | 17,702,969 | 15,299,017 |
Investments in other equity instruments | 273,489 | - |
Other non-current financial assets |
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Investment properties | 338,907 | 330,768 |
Fixed assets | 165,411,815 | 158,274,275 |
Construction in progress | 32,942,101 | 30,340,891 |
Biological assets for production |
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Oil and gas assets |
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Intangible assets | 4,022,614 | 4,400,762 |
Development expenses |
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Goodwill | 1,102,185 | 1,102,185 |
Long-term deferred expenses | 641,480 | 657,364 |
Deferred tax assets | 2,550,929 | 2,431,886 |
Other non-current assets |
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Total non-current assets | 226,652,047 | 214,958,483 |
Total assets | 252,579,331 | 235,717,816 |
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CURRENT LIABILITIES: |
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Short-term loans | 20,541,112 | 19,483,625 |
Short-term bonds payable | 3,384,130 | 1,199,450 |
Borrowings from central bank |
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Deposits from clients and placements from other banks |
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Contributions received |
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Financial liabilities held-for-trading |
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Derivative financial liabilities |
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Bills payable and accounts payable | 15,994,716 | 14,672,242 |
Domestic air traffic liabilities | 2,727,336 | 2,565,696 |
International air traffic liabilities | 5,459,649 | 4,840,061 |
Receipts in advance | - | 518,413 |
Contract liabilities | 951,822 | - |
Sale of financial assets repurchased |
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Fees and commissions payable |
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Employee compensations payable | 3,292,383 | 2,533,032 |
Taxes payable | 1,625,701 | 2,361,253 |
Other payables | 9,029,597 | 8,581,663 |
Including: Interest payable | 667,519 | 610,089 |
Dividend payable |
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Amounts payable on reinsurance |
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Reserves on insurance contracts |
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Brokerage payable |
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Underwriting fees payable |
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Held-for-sale liabilities |
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Non-current liabilities due within a year | 14,725,364 | 14,999,650 |
Other current liabilities |
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Total current liabilities | 77,731,810 | 71,755,085 |
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NON-CURRENT LIABILITIES: |
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Long-term loans | 4,792,769 | 7,608,289 |
Debentures payable | 12,400,000 | 14,500,000 |
Including: Preference shares |
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Perpetual bonds |
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Long-term payables | 4,255,477 | 3,669,405 |
Obligations under finance leases | 44,509,051 | 37,798,582 |
Defined benefit obligations | 263,424 | 263,575 |
Accrued liabilities | 473,524 | 492,869 |
Deferred income | 706,633 | 3,568,127 |
Deferred tax liabilities | 813,135 | 1,130,054 |
Other non-current liabilities | 3,344,922 | - |
Total non-current liabilities | 71,558,935 | 69,030,901 |
Total liabilities | 149,290,745 | 140,785,986 |
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OWNER'S EQUITY (OR SHAREHOLDER'S EQUITY) |
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Paid-up capital (or share capital) | 14,524,815 | 14,524,815 |
Other equity instruments |
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Including: Preference shares |
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Perpetual bonds |
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Capital reserve | 26,270,841 | 26,270,841 |
Less: Treasury shares |
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Other comprehensive income | 151,074 | -1,693,743 |
Specific reserves |
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Surplus reserves | 9,873,710 | 9,177,905 |
General risk provisions | 69,742 | 69,742 |
Retained earnings | 43,042,636 | 37,771,234 |
Total owner's equity attributable to equity shareholders of the Company | 93,932,818 | 86,120,794 |
Non-controlling interests | 9,355,768 | 8,811,036 |
Total owner's equity (or shareholder's equity) | 103,288,586 | 94,931,830 |
Total liabilities and owner's equity (or shareholder's equity) | 252,579,331 | 235,717,816 |
Legal representative: Mr. Cai Jianjiang
Person in charge of accounting function: Mr. Xiao Feng
Person in charge of accounting department: Mr. Zhan Zhong
BALANCE SHEET OF THE COMPANY
30 September 2018
Prepared by Air China Limited
Unit: RMB'000 (Unaudited)
Items | Balance at the end of the Period | Balance at the end of the previous year |
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CURRENT ASSETS: |
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Cash and bank | 6,315,690 | 3,172,520 |
Financial assets held-for-trading |
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Derivative financial assets |
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Bills receivable and accounts receivable | 6,119,021 | 3,534,850 |
Including: Bills receivable |
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Accounts receivable |
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Prepayments | 840,465 | 2,612,939 |
Other receivables | 1,961,951 | 1,913,843 |
Including: Interest receivable |
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Dividend receivable |
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Inventories | 217,325 | 97,900 |
Contract assets |
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Held-for-sale assets | 32,689 | 283,562 |
Non-current assets due within a year |
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Other current assets | 2,100,209 | 1,173,376 |
Total current assets | 17,587,350 | 12,788,990 |
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NON-CURRENT ASSETS: |
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Available-for-sale financial assets | - | 22,783 |
Entrusted loans | - | 1,020,000 |
Debt investments |
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Other debt investments |
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Long-term receivables | 470,982 | 449,913 |
Long-term equity investments | 27,823,169 | 27,325,997 |
Investments in other equity instruments | 22,783 | - |
Other non-current financial assets |
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Investment properties |
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Fixed assets | 110,780,006 | 106,694,613 |
Construction in progress | 22,900,263 | 20,856,626 |
Biological assets for production |
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Oil and gas assets |
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Intangible assets | 2,695,771 | 2,758,672 |
Development expenses |
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Goodwill |
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Long-term deferred expenses | 297,824 | 312,285 |
Deferred tax assets | 2,152,716 | 2,034,870 |
Other non-current assets |
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Total non-current assets | 167,143,514 | 161,475,759 |
Total assets | 184,730,864 | 174,264,749 |
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CURRENT LIABILITIES: |
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Short-term loans | 13,296,000 | 11,538,000 |
Financial liabilities held-for-trading |
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Derivative financial liabilities |
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Bills payable and accounts payable | 13,555,331 | 11,975,550 |
Domestic air traffic liabilities | 1,948,391 | 1,821,334 |
International air traffic liabilities | 4,951,776 | 4,455,368 |
Receipts in advance | - | 183,194 |
Contract liabilities | 399,501 | - |
Employee compensations payable | 1,362,158 | 852,023 |
Taxes payable | 1,122,370 | 1,118,137 |
Other payables | 8,312,667 | 8,279,541 |
Including: Interest payable | 472,004 | 542,539 |
Dividend payable |
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Held-for-sale liabilities |
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Non-current liabilities due within a year | 9,823,659 | 8,738,784 |
Other current liabilities |
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Total current liabilities | 54,771,853 | 48,961,931 |
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NON-CURRENT LIABILITIES: |
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Long-term loans | 1,522,623 | 1,871,198 |
Debentures payable | 10,500,000 | 14,500,000 |
Including: Preference shares |
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Perpetual bonds |
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Long-term payables | 2,104,953 | 1,928,023 |
Obligations under finance leases | 27,354,750 | 23,643,577 |
Defined benefit obligations |
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Accrued liabilities | 132,280 | 158,711 |
Deferred income | 380,166 | 2,935,541 |
Deferred tax liabilities |
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Other non-current liabilities | 2,968,426 | - |
Total non-current liabilities | 44,963,198 | 45,037,050 |
Total liabilities | 99,735,051 | 93,998,981 |
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OWNER'S EQUITY (OR SHAREHOLDER'S EQUITY) |
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Paid-up capital (or share capital) | 14,524,815 | 14,524,815 |
Other equity instruments |
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Including: Preference shares |
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Perpetual bonds |
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Capital reserve | 30,618,680 | 30,618,680 |
Less: Treasury shares |
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Other comprehensive income | 217,593 | 219,029 |
Specific reserves |
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Surplus reserves | 9,836,604 | 9,140,799 |
Retained earnings | 29,798,121 | 25,762,445 |
Total owner's equity (or shareholder's equity) | 84,995,813 | 80,265,768 |
Total liabilities and owner's equity (or shareholder's equity) | 184,730,864 | 174,264,749 |
Legal representative: Mr. Cai Jianjiang
Person in charge of accounting function: Mr. Xiao Feng
Person in charge of accounting department: Mr. Zhan Zhong
CONSOLIDATED INCOME STATEMENT
January to September 2018
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 previous Reporting Period (January to September) |
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I. Revenue from operations | 38,637,773 | 34,401,461 | 102,880,095 | 91,782,079 |
Including: Revenue | 38,637,773 | 34,401,461 | 102,880,095 | 91,782,079 |
Interest income |
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Premium earned |
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Fees and commission income |
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II. Total operating costs | 35,240,204 | 27,682,153 | 96,633,464 | 80,858,572 |
Including: Operating costs | 29,817,131 | 25,220,307 | 84,069,227 | 72,874,900 |
Interest expenses |
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Fees and commission expenses |
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Returned premium |
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Net reimbursement paid |
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Net amounts of provisions on insurance contracts drawn |
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Bonus paid on insurance policy |
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Reinsurance premium |
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Taxes and other levies | 53,054 | 61,408 | 163,086 | 220,290 |
Selling expenses | 1,687,850 | 1,602,723 | 4,750,436 | 4,674,358 |
General and administrative expenses | 1,141,159 | 1,015,313 | 3,351,877 | 2,944,291 |
R&D expenses | 20,743 | 18,256 | 61,250 | 54,357 |
Finance expenses | 2,622,059 | -247,213 | 4,522,277 | 66,338 |
Including: Interest expenses | 762,271 | 704,144 | 2,132,416 | 2,296,554 |
Interest income | 52,408 | 59,935 | 112,090 | 149,641 |
Impairment loss of assets | - | 11,359 | 440 | 24,038 |
Impairment loss of credit | -101,792 | - | -285,129 | - |
Add: Other income | 607,764 | 479,940 | 2,287,680 | 1,762,871 |
Investment income (loss is represented by "-" sign) | 596,386 | 111,062 | 974,517 | -252,959 |
Including:Share of profits or losses of associates and joint ventures | 579,678 | 94,281 | 772,454 | -306,567 |
Gains from net exposure to hedging (loss is represented by "-" sign) |
|
|
|
|
Gains from changes in fair value (loss is represented by "-" sign) | -1,735 | 215 | 323 | 304 |
Gains from disposal of assets (loss is represented by "-" sign) | 12,074 | 48,376 | 84,258 | 48,591 |
Exchange gains (loss is represented by "-" sign) |
|
|
|
|
|
|
|
|
|
III. Profit from operations (loss is represented by "-" sign) | 4,612,058 | 7,358,901 | 9,593,409 | 12,482,314 |
Add: Non-operating income | 25,776 | 23,609 | 59,023 | 70,196 |
Including:Gains arising from disposal of non-current assets | 237 | 251 | 1,303 | 832 |
Less: Non-operating expenses | 60,736 | 18,013 | 79,467 | 33,256 |
Including:Loss arising from disposal of non-current assets | 5,964 | 1,164 | 9,955 | 3,939 |
|
|
|
|
|
IV. Total profit (total loss is represented by "-" sign) | 4,577,098 | 7,364,497 | 9,572,965 | 12,519,254 |
Less: Income taxation | 848,305 | 1,679,317 | 1,947,312 | 2,927,601 |
|
|
|
|
|
V. Net profit (net loss is represented by "-" sign) | 3,728,793 | 5,685,180 | 7,625,653 | 9,591,653 |
(I) Classified by continuity of operations |
|
|
|
|
1. Net profit from continuing operations (net loss is represented by "-" sign) | 3,728,793 | 5,685,180 | 7,625,653 | 9,591,653 |
2. Net profit from discontinued operations (net loss is represented by "-" sign) |
|
|
|
|
(II) Classified by ownership of equity |
|
|
|
|
1. Net profits attributable to shareholders of the Company | 3,468,889 | 4,952,088 | 6,937,408 | 8,278,508 |
2. Net profits attributable to non-controlling interests | 259,904 | 733,092 | 688,245 | 1,313,145 |
|
|
|
|
|
VI. Other comprehensive income after taxation | 972,599 | -472,893 | 2,066,810 | -1,180,120 |
Other comprehensive income after taxation attributable to shareholders of the Company | 949,055 | -449,799 | 2,042,501 | -1,173,758 |
(I) Other comprehensive income that cannot be reclassified to profit or loss | -6,634 | - | -18,377 | -13,441 |
1. Changes arising on remeasurement of defined benefit plans | - | - | -6,022 | -13,441 |
2. Other comprehensive income accounted for using the equity method that cannot be reclassified to profit or loss | - | - | -1,436 | - |
3. Change in fair value of investments in other equity instruments | -6,634 | - | -10,919 | - |
4. Change in fair value of own credit risk |
|
|
|
|
(II) Other comprehensive income that will be reclassified to profit or loss | 955,689 | -449,799 | 2,060,878 | -1,160,317 |
1. Other comprehensive income accounted for using the equity method that may be reclassifiedto profit or loss | 20,544 | - | 956,874 | -133,787 |
2. Change in fair value of other debt investments | 2,784 | - | 4,791 | - |
3. Amount included in other comprehensive income on reclassification of financial assets |
|
|
|
|
4. Provision for credit impairment of other debt investments |
|
|
|
|
5. Cash flows hedging reserve |
|
|
|
|
6. Exchange difference on translation of financial statements in foreign currency | 932,361 | -438,712 | 1,099,213 | -1,056,648 |
7. Fair value gain or loss of available-for-sale financial assets | - | -11,087 | - | 30,118 |
Other comprehensive income after taxation attributable to non-controlling interests | 23,544 | -23,094 | 24,309 | -6,362 |
|
|
|
|
|
VII. Total comprehensive income | 4,701,392 | 5,212,287 | 9,692,463 | 8,411,533 |
Total comprehensive income attributable to shareholders of the Company | 4,417,944 | 4,502,289 | 8,979,909 | 7,104,750 |
Total comprehensive income attributable to non-controlling interests | 283,448 | 709,998 | 712,554 | 1,306,783 |
|
|
|
|
|
VIII. Earnings per share: |
|
|
|
|
(I) Basic earnings per share (RMB per share) | 0.26 | 0.37 | 0.51 | 0.62 |
(II) Diluted earnings per share (RMB per share) | N/A | N/A | N/A | N/A |
Legal representative: Mr. Cai Jianjiang
Person in charge of accounting function: Mr. Xiao Feng
Person in charge of accounting department: Mr. Zhan Zhong
INCOME STATEMENT OF THE COMPANY
January to September 2018
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- September) | Amounts for the period from the beginning of the previous year to the end of the previous Reporting Period (January- September) |
|
|
|
|
|
I. Revenue from operations | 26,603,234 | 23,784,535 | 70,085,373 | 63,148,234 |
Less: Operating costs | 20,425,043 | 17,263,149 | 57,259,408 | 50,117,799 |
Taxes and other levies | 18,324 | 18,742 | 56,669 | 84,836 |
Selling expenses | 1,263,580 | 1,148,934 | 3,577,571 | 3,448,329 |
General and administrative expenses | 440,221 | 435,480 | 1,282,913 | 1,224,923 |
R&D expenses | 11,881 | 11,254 | 36,964 | 36,286 |
Finance expenses | 1,529,253 | -19,850 | 2,743,035 | 403,697 |
Including: Interest expenses | 492,692 | 505,779 | 1,406,457 | 1,643,872 |
Interest income | 44,282 | 37,567 | 87,474 | 82,256 |
Impairment loss of assets | - | - | - | 1,991 |
Impairment loss of credit | - | - | 3,616 | - |
Add: Other income | 337,060 | 310,641 | 1,548,136 | 1,370,765 |
Investment income (loss is represented by "-" sign) | 409,883 | 390,299 | 894,755 | 809,808 |
Including: Share of profits or losses of associates and joint ventures | 373,456 | 386,424 | 707,040 | 638,111 |
Gains from net exposure to hedging (loss is represented by "-" sign) |
|
|
|
|
Gains from changes in fair value (loss is represented by "-" sign) |
|
|
|
|
Income from disposal of assets (loss is represented by "-" sign) | 2,928 | 49,546 | 74,962 | 49,761 |
|
|
|
|
|
II. Profit from operations (loss is represented by "-" sign) | 3,664,803 | 5,677,312 | 7,643,050 | 10,060,707 |
Add: Non-operating income | 6,852 | 3,175 | 11,210 | 9,144 |
Including: Gains arising from disposal of non-current assets | 75 | 17 | 938 | 92 |
Less: Non-operating expenses | 8,691 | 3,229 | 15,691 | 9,886 |
Including: Loss arising from disposal of non-current assets | 4,273 | 433 | 6,140 | 555 |
|
|
|
|
|
III. Total profit (total loss is represented by "-" sign) | 3,662,964 | 5,677,258 | 7,638,569 | 10,059,965 |
Less: Income Taxation | 769,552 | 1,308,068 | 1,591,806 | 2,240,010 |
|
|
|
|
|
IV. Net profit (net loss is represented by "-" sign) | 2,893,412 | 4,369,190 | 6,046,763 | 7,819,955 |
(I) Net profit from continuing operations (net loss is represented by "-" sign) | 2,893,412 | 4,369,190 | 6,046,763 | 7,819,955 |
(II) Net profit from discontinued operations (net loss is represented by "-" sign) |
|
|
|
|
|
|
|
|
|
V. Other comprehensive income after taxation | - | - | -1,436 | 22,929 |
(I) Other comprehensive income that cannot be subsequently reclassified to profit or loss | - | - | -1,436 | - |
1. Change arising from re-measurement of defined benefit plans |
|
|
|
|
2. Other comprehensive income accounted for using the equity method that cannot be reclassified to profit or loss | - | - | -1,436 | - |
3. Changes in fair value of investment in other equity instruments |
|
|
|
|
4. Changes in fair value of enterprise's own credit risk |
|
|
|
|
(II) Other comprehensive income that will be reclassified to profit or loss | - | - | - | 22,929 |
1. Other comprehensive income accounted for using the equity method that can be reclassified to profit or loss | - | - | - | 22,929 |
2. Change in fair value of other debt investments |
|
|
|
|
3. Amount of financial assets reclassified into other comprehensive income |
|
|
|
|
4. Credit impairment reserve for other debt investment |
|
|
|
|
5. Reserve for cash flow hedging |
|
|
|
|
6. Differences on translation of foreign currency financial statements |
|
|
|
|
|
|
|
|
|
VI. Total comprehensive income | 2,893,412 | 4,369,190 | 6,045,327 | 7,842,884 |
|
|
|
|
|
VII. Earnings per share: |
|
|
|
|
(I) Basic earnings per share (RMB per share) |
|
|
|
|
(II) Diluted earnings per share (RMB per share) |
|
|
|
|
Legal representative: Mr. Cai Jianjiang
Person in charge of accounting function: Mr. Xiao Feng
Person in charge of accounting department: Mr. Zhan Zhong
CONSOLIDATED CASH FLOW STATEMENT
January to September 2018
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- September) | Amounts for the period from the beginning of the previous year to the end of the previous Reporting Period (January- September) |
|
|
|
I. Cash flows from operating activities: |
|
|
Cash received from sales of goods and provision of services | 107,714,571 | 96,270,956 |
Net increase in deposits from clients and placements from other banks |
|
|
Net increase in borrowings from central bank |
|
|
Net increase in borrowings 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 disposal of financial assets at fair value through profit or loss |
|
|
Cash received from interests, fees and commission |
|
|
Net increase in contributions received |
|
|
Net increase in cash from repurchase operations |
|
|
Refund of tax and levy | 90,838 | 22,972 |
Other cash received relating to operating activities | 5,017,851 | 3,771,018 |
Subtotal of cash inflows of operating activities | 112,823,260 | 100,064,946 |
Cash paid for goods purchased and services received | 59,752,837 | 52,388,593 |
Net increase in loans and advances to clients |
|
|
Net increase in deposits in central bank and 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 | 17,185,580 | 15,770,795 |
Tax and levies paid | 5,636,907 | 5,235,393 |
Other cash paid relating to operating activities | 5,633,123 | 7,809,511 |
Subtotal of cash outflows from operating activities | 88,208,447 | 81,204,292 |
Net cash flows from operating activities | 24,614,813 | 18,860,654 |
|
|
|
II. Cash flows from investment activities: |
|
|
Cash received from sales and redemption of investments | 275,897 | - |
Recovery of the secured bank deposits | 7,477 | 4,902 |
Cash received from investment income | 250,081 | 218,769 |
Net cash proceeds from disposal of fixed assets, intangible assets and other long-term assets | 367,240 | 2,536,996 |
Net cash proceeds from disposal of subsidiaries and other business units |
|
|
Other cash received relating to investment activities | 150,454 | 157,169 |
Subtotal of cash inflows from investment activities | 1,051,149 | 2,917,836 |
Cash paid for purchase of fixed assets, intangible assets and other long-term assets | 10,020,140 | 10,143,733 |
Cash paid for investments | 178,904 | 118,132 |
Net increase in secured loans |
|
|
Net cash payments for acquisition of subsidiaries and other business units |
|
|
Other cash paid relating to investment activities | 177,632 | 8,328 |
Subtotal of cash outflows from investment activities | 10,376,676 | 10,270,193 |
Net cash flows from investment activities | -9,325,527 | -7,352,357 |
|
|
|
III. Cash flows from financing activities: |
|
|
Cash received from capital injection | - | 11,201,374 |
Including: Cash received from capital injection of minority shareholders in subsidiaries |
|
|
Cash received from borrowings | 27,706,042 | 21,516,462 |
Cash received from issue of debentures | 6,100,000 | 600,000 |
Other cash received relating to financing activities |
|
|
Subtotal of cash inflows from financing activities | 33,806,042 | 33,317,836 |
Cash paid for repayment of borrowings | 30,496,786 | 25,994,065 |
Cash paid for repayment of debentures | 5,500,000 | 5,147,717 |
Cash paid for distribution of dividends, profits or payment of interest expenses | 4,403,925 | 4,184,214 |
Including: Dividends and profits paid to minority shareholders by subsidiaries | 185,043 | 176,120 |
Cash paid under the finance lease | 5,791,932 | 4,441,728 |
Other cash paid relating to financing activities |
|
|
Subtotal of cash outflows from financing activities | 46,192,643 | 39,767,724 |
Net cash flows from financing activities | -12,386,601 | -6,449,888 |
|
|
|
IV. Effect of exchange rate changes on cash and cash equivalents | 107,569 | -134,197 |
|
|
|
V. Net increase in cash and cash equivalents | 3,010,254 | 4,924,212 |
Add: Balance of cash and cash equivalents as at the beginning of the period | 5,562,907 | 6,848,018 |
|
|
|
VI. Balance of cash and cash equivalents as at the end of the period | 8,573,161 | 11,772,230 |
Legal representative: Mr. Cai Jianjiang
Person in charge of accounting function: Mr. Xiao Feng
Person in charge of accounting department: Mr. Zhan Zhong
CASH FLOW STATEMENT OF THE COMPANY
January to September 2018
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- September) | Amounts for the period from the beginning of the previous year to the end of the previous Reporting Period (January- September) |
|
|
|
I. Cash flows from operating activities: |
|
|
Cash received from sales of goods and provision of services | 71,119,564 | 64,344,737 |
Refund of tax and levy |
|
|
Other cash received relating to operating activities | 3,422,622 | 2,887,597 |
Subtotal of cash inflows of operating activities | 74,542,186 | 67,232,334 |
Cash paid for goods purchased and services received | 41,569,413 | 38,521,178 |
Cash paid to or on behalf of employees | 8,036,437 | 7,282,311 |
Tax and levies paid | 3,187,847 | 3,211,344 |
Other cash paid relating to operating activities | 4,593,937 | 4,565,204 |
Subtotal of cash outflows from operating activities | 57,387,634 | 53,580,037 |
Net cash flows from operating activities | 17,154,552 | 13,652,297 |
|
|
|
II. Cash flows from investment activities: |
|
|
Cash received from sales and redemption of investments | 1,020,000 | - |
Cash received from investment income | 328,820 | 402,223 |
Net cash proceeds from disposal of fixed assets, intangible assets and other long-term assets | 1,041,554 | 917,646 |
Net cash proceeds from disposal of subsidiaries and other business units |
|
|
Other cash received relating to investment activities | 91,128 | 82,256 |
Subtotal of cash inflows from investment activities | 2,481,502 | 1,402,125 |
Cash paid for purchase of fixed assets, intangible assets and other long-term assets | 7,951,473 | 5,495,017 |
Cash paid for investments |
|
|
Net cash payments for acquisition of subsidiaries and other business units |
|
|
Other cash paid relating to investment activities |
|
|
Subtotal of cash outflows from investment activities | 7,951,473 | 5,495,017 |
Net cash flows from investment activities | -5,469,971 | -4,092,892 |
|
|
|
III. Cash flows from financing activities: |
|
|
Cash received from capital injection | - | 11,201,374 |
Cash received from borrowings | 21,088,936 | 11,767,567 |
Cash received from issue of bonds |
|
|
Other cash received relating to financing activities |
|
|
Subtotal of cash inflows from financing activities | 21,088,936 | 22,968,941 |
Cash paid for repayment of borrowings | 18,558,918 | 19,548,222 |
Cash paid for repayment of debentures | 3,500,000 | - |
Cash paid for distribution of dividends, profits or payment of interest expenses | 3,330,452 | 3,186,951 |
Other cash paid relating to financing activities | 4,268,662 | 3,365,810 |
Subtotal of cash outflows from financing activities | 29,658,032 | 26,100,983 |
Net cash flows from financing activities | -8,569,096 | -3,132,042 |
|
|
|
IV. Effect of exchange rate changes on cash and cash equivalents | 27,685 | -60,683 |
|
|
|
V. Net increase in cash and cash equivalents | 3,143,170 | 6,366,680 |
Add: Balance of cash and cash equivalents as at the beginning of the period | 3,172,520 | 2,221,952 |
|
|
|
VI. Balance of cash and cash equivalents as at the end of the period | 6,315,690 | 8,588,632 |
Legal representative: Mr. Cai Jianjiang
Person in charge of accounting function: Mr. Xiao Feng
Person in charge of accounting department: Mr. Zhan Zhong
4.2 Auditor's Report
£ Applicable þ Not applicable
By Order of the Board
Air China Limited
Zhou Feng Tam Shuit Mui
Joint Company Secretaries
Beijing, the PRC, 30 October 2018
As at the date of this announcement, the directors of the Company are Mr. Cai Jianjiang, Mr. Song Zhiyong, Mr. Xue Yasong, Mr. John Robert Slosar, Mr. Wang Xiaokang*, Mr. Liu Deheng*, Mr. Stanley Hui Hon-chung* and Mr. Li Dajin*.
* Independent non-executive director of the Company