Last checked at 27 Apr 2018 07:12
Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.
AIR CHINA LIMITED
中國國際航空股份有限公司
FIRST 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 26 April 2018 and passed the resolution approving the first quarterly report 2018 of the Company for the first quarter ended 31 March 2018 (the "Reporting Period" or "Period") prepared in accordance with the PRC Accounting Standards for Business Enterprises.
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 |
|
|
|
|
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 first 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 | |
After adjustment | Before adjustment | |||
|
|
|
| (%) |
|
|
|
|
|
Total assets | 234,620,919 | 235,717,816 | 235,717,816 | -0.47 |
Net asset attributable to shareholders of the listed company | 88,253,607 | 86,494,223 | 86,120,794 | 2.03 |
| For the period from the beginning of the year to the end of the Reporting Period | For the corresponding periodof the previous year | Increase/ decrease as compared to the corresponding period of the previous year | |
After adjustment | Before adjustment | |||
|
|
|
| (%) |
|
|
|
|
|
Net cash flows from operating activities | 7,237,628 | 2,472,549 | 2,472,549 | 192.72 |
|
|
|
|
|
| For the period from the beginning of the year to the end of the Reporting Period | For the corresponding periodof the previous year | Increase/ decrease as compared to the corresponding period of the previous year | |
After adjustment | Before adjustment | |||
|
|
|
| (%) |
|
|
|
|
|
Revenue | 31,606,754 | 28,968,982 | 28,968,982 | 9.11 |
Net profit attributable to shareholders of the listed company | 2,628,202 | 1,466,400 | 1,466,400 | 79.23 |
Net profit attributable to shareholders of the listed company after deducting non-recurring profits and losses | 2,600,253 | 1,439,366 | 1,439,366 | 80.65 |
Weighted average return on net assets (%) | 3.01 | 2.03 | 2.03 | Increase by 0.98 ppt |
Basic earnings per share(RMB per share) | 0.19 | 0.11 | 0.11 | 79.23 |
Diluted earnings per share(RMB per share) | N/A | N/A | N/A | N/A |
Non-recurring profits and losses
Applicable Not applicable
Unit: RMB'000
Items | Amounts for the Period |
|
|
Gains or losses on disposal of non-current assets | -1,542 |
Government subsidies recorded in the income statement for the current period (exclusive of government subsidies which are closely related to the business of the Company and entitled pursuant to unified standard quota or amount under the government policy) | 39,297 |
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) | 4,901 |
Other non-operating income and expenses not covered above | 8,113 |
Effect of non-controlling shareholders' interests (after taxation) | -10,219 |
Effect of income tax | -12,601 |
|
|
|
|
Total | 27,949 |
|
|
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 | 153,479 | |||||||||||
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 | |||||||||||
|
| (%) |
|
|
|
|
| |||||
|
|
|
|
|
|
|
| |||||
China National Aviation HoldingCorporation Limited | 5,952,236,697 | 40.98 | 513,478,818 | Frozen | 127,445,536 | State |
| |||||
Cathay Pacific Airways Limited | 2,633,725,455 | 18.13 | 0 | Nil | 0 | Foreign legal person |
| |||||
HKSCC NOMINEES LIMITED | 1,687,426,519 | 11.62 | 0 | Nil | 0 | 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 |
| |||||
Zhongyuan Equity Investment Management Co., Ltd. | 256,739,505 | 1.77 | 0 | Unknown | 256,739,405 | State-owned legal person |
| |||||
China Securities Finance Corporation Limited | 253,339,908 | 1.74 | 0 | Nil | 0 | State-owned legal person |
| |||||
China Structural Reform Fund Co., Ltd. | 208,833,358 | 1.44 | 0 | Nil | 0 | State-owned legal person |
| |||||
National Social Security Fund 118 | 62,034,895 | 0.43 | 0 | Nil | 0 | State-owned legal person |
| |||||
China Life Insurance Company Limited - Dividends - Individual Dividends - 005L - FH002 Shanghai | 34,080,837 | 0.23 | 0 | Nil | 0 | Unknown |
| |||||
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 | ||
|
|
|
|
China National Aviation HoldingCorporation 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 | 1,687,426,519 | Overseas listed foreign shares | 1,687,426,519 |
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 |
Zhongyuan Equity Investment Management Co., Ltd. | 256,739,505 | RMB ordinary shares | 256,739,505 |
China Securities Finance Corporation Limited | 253,339,908 | RMB ordinary shares | 253,339,908 |
China Structural Reform Fund Co., Ltd. | 208,833,358 | RMB ordinary shares | 208,833,358 |
National Social Security Fund 118 | 62,034,895 | RMB ordinary shares | 62,034,895 |
China Life Insurance Company Limited - Dividends - Individual Dividends - 005L - FH002 Shanghai | 34,080,837 | RMB ordinary shares | 34,080,837 |
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 1,687,426,519 H shares held by it in the Company do not include the 166,852,000 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 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 Not applicable
In the first quarter of 2018, the Company achieved a year-on-year increase in revenue by optimizing production organizations, increasing operating efficiency, expanding investment scale and refining yield control. Meanwhile, benefiting from the appreciation of the RMB against the US dollar, the Company achieved good results in the first quarter, recording the total profit of RMB4.024 billion, representing a year-on-year increase of RMB1.604 billion, and net profit attributable to the Company of RMB2.628 billion, representing a year-on-year increase of RMB1.162 billion.
The Company implemented five Accounting Standards for Business Enterprises revised and issued by the Ministry of Finance in 2017 from 1 January 2018, including "Accounting Standards for Business Enterprises No. 14 - Revenue", "Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments", "Accounting Standards for Business Enterprises No. 23 - Transfer of Financial Assets", "Accounting Standards for Business Enterprises No. 24 - Hedge Accounting" and "Accounting Standards for Business Enterprises No. 37 - Presentation and Reporting of Financial Instrument". In particular, according to "Accounting Standards for Business Enterprises No. 14 - Revenue", retained earnings and non-controlling interests at the beginning of 2018 in aggregate were increased by approximately RMB391 million in the consolidated financial statements and no adjustments were made to the information during the comparable period. The Company also adjusted the presentation of the current financial statements according to the requirements of "Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments", and no adjustments were made to the information during the comparable period.
Items in consolidated balance sheet | Balance at the end of the Reporting Period | Balance at the beginning of the year | Amount of Change | Percentage | Reasons for Change |
|
| (Restated) |
| (%) |
|
|
|
|
|
|
|
Financial assets at fair value through profit or loss | 402,302 | 19,938 | 382,364 | 1,917.77 | Mainly due to the impact of the implementation of new accounting standards for financial instruments. |
Prepayments | 1,061,275 | 3,113,262 | -2,051,987 | -65.91 | Mainly due to the decrease in prepayment for aviation oil during the Reporting Period. |
Financial assets at fair value through other comprehensive income | 898,606 | - | 898,606 | Not applicable | Mainly due to the impact of the implementation of new accounting standards for financial instruments. |
Available-for-sale financial assets | - | 1,336,996 | -1,336,996 | Not applicable | Mainly due to the impact of the implementation of new accounting standards for financial instruments. |
Short-term bonds payable | 599,923 | 1,199,450 | -599,527 | -49.98 | Repayment of short-term bonds due during the Reporting Period. |
Other comprehensive income | -2,562,561 | -1,693,743 | -868,818 | -51.30 | The decrease in exchange difference on translation of financial statements in foreign currency during the Reporting Period. |
Items in consolidated income statement | Amounts for the Period | Amounts for the corresponding period of the previous year | Amount of Change | Percentage | Reasons for Change |
|
|
|
| (%) |
|
|
|
|
|
|
|
Finance expenses | -997,160 | 496,915 | -1,494,075 | -300.67 | Mainly due to the increase in the net exchange gain during the Reporting Period as compared to the corresponding period of the previous year. |
Items in consolidatedcash flow statement | Amounts for the Period | Amounts for the corresponding period of the previous year | Amount of Change | Percentage | Reasons for Change |
|
|
|
| (%) |
|
|
|
|
|
|
|
Other cash received relating to operating activities | 2,073,744 | 725,989 | 1,347,755 | 185.64 | Mainly due to the decrease in the net amounts of contributions made by China National Aviation Finance Co., Ltd., a subsidiary of the Company, during the Reporting Period as compared to the corresponding period of the previous year. |
Tax and levies paid | 1,977,075 | 1,401,135 | 575,940 | 41.11 | Mainly due to the increase in enterprise income taxes paid during the Reporting Period as compared to the corresponding period of the previous year. |
Cash received from capital injection | - | 11,201,374 | -11,201,374 | -100.00 | Due to raised capital by non-public issue of shares received during the corresponding period of the previous year. |
Cash paid for repayment of debentures | 600,000 | 1,200,000 | -600,000 | -50.00 | Due to the decrease in repayment of debentures during the Reporting Period as compared to the corresponding period of the previous year. |
3.2 Analysis and explanation on the progress of significant events and their impact and resolutions
Applicable Not applicable
3.3 Undertakings that were failed to fulfill as scheduled during the Reporting Period
Applicable Not applicable
3.4 Warnings and explainations 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 Not applicable
Company name |
| Air China Limited |
Legal representative |
| Mr. Cai Jianjiang |
Date |
| 26 April 2018 |
4. APPENDIX
4.1 Financial Statements
CONSOLIDATED BALANCE SHEET
31 March 2018
Prepared by Air China Limited
Unit: RMB'000 (Unaudited)
Items | Balance at the end of the Period | Balance at the beginning of the year |
|
| (Restated) |
|
|
|
CURRENT ASSETS: |
|
|
Cash and bank | 6,264,280 | 6,260,074 |
Provisions on payables |
|
|
Contributions made |
|
|
Financial assets at fair value through profit or loss | 402,302 | 19,938 |
Derivative financial assets |
|
|
Bills receivable | 287 | 348 |
Accounts receivable | 3,544,918 | 3,490,427 |
Prepayments | 1,061,275 | 3,113,262 |
Premium receivable |
|
|
Receivables on reinsurance |
|
|
Provisions for reinsurance contracts |
|
|
Interest receivable |
|
|
Dividend receivable |
|
|
Other receivables | 1,599,529 | 2,009,253 |
Purchase of financial assets resold |
|
|
Inventories | 1,669,004 | 1,535,769 |
Held-for-sale assets | 194,303 | 283,562 |
Non-current assets due within a year | - | 10,000 |
Other current assets | 3,542,291 | 4,036,700 |
Total current assets | 18,278,189 | 20,759,333 |
Items | Balance at the end of the Period | Balance at the beginning of the year |
|
| (Restated) |
|
|
|
NON-CURRENT ASSETS: |
|
|
Financial assets at fair value through other comprehensive income | 898,606 | - |
Loans and advances |
|
|
Available-for-sale financial assets | - | 1,336,996 |
Held-to-maturity investments |
|
|
Long-term receivables | 757,798 | 784,339 |
Long-term equity investments | 14,790,353 | 15,299,017 |
Investment properties | 326,447 | 330,768 |
Fixed assets | 158,554,240 | 158,274,275 |
Construction in progress | 32,401,359 | 30,340,891 |
Construction materials |
|
|
Disposal of fixed assets |
|
|
Biological assets for production |
|
|
Oil and gas assets |
|
|
Intangible assets | 4,351,190 | 4,400,762 |
Development expenses |
|
|
Goodwill | 1,102,185 | 1,102,185 |
Long-term deferred expenses | 657,441 | 657,364 |
Deferred tax assets | 2,503,111 | 2,431,886 |
Other non-current assets |
|
|
Total non-current assets | 216,342,730 | 214,958,483 |
Total assets | 234,620,919 | 235,717,816 |
Items | Balance at the end of the Period | Balance at the beginning of the year |
|
| (Restated) |
|
|
|
CURRENT LIABILITIES: |
|
|
Short-term loans | 19,449,299 | 19,483,625 |
Borrowings from central bank |
|
|
Short-term bonds payable | 599,923 | 1,199,450 |
Deposits from clients and placements fromother banks |
|
|
Contributions received |
|
|
Financial liabilities at fair value through profit or loss |
|
|
Derivative financial liabilities |
|
|
Bills payable |
|
|
Accounts payable | 15,767,931 | 14,672,242 |
Domestic air traffic liabilities | 2,076,939 | 2,396,633 |
International air traffic liabilities | 4,199,523 | 4,477,730 |
Receipts in advance | 374,194 | 518,413 |
Sale of financial assets repurchased |
|
|
Fees and commissions payable |
|
|
Employee compensations payable | 2,037,363 | 2,533,032 |
Taxes payable | 2,152,831 | 2,501,162 |
Interest payable | 561,538 | 610,089 |
Dividend payable |
|
|
Other payables | 7,262,713 | 7,971,574 |
Amounts payable on reinsurance |
|
|
Reserves on insurance contracts |
|
|
Brokerage payable |
|
|
Underwriting fees payable |
|
|
Held-for-sale liabilities |
|
|
Non-current liabilities due within a year | 15,367,628 | 14,999,650 |
Other current liabilities |
|
|
Total current liabilities | 69,849,882 | 71,363,600 |
Items | Balance at the end of the Period | Balance at the beginning of the year |
|
| (Restated) |
|
|
|
NON-CURRENT LIABILITIES: |
|
|
Long-term loans | 6,118,745 | 7,608,289 |
Debentures payable | 15,000,000 | 14,500,000 |
Including: Preference shares |
|
|
Perpetual bonds |
|
|
Long-term payables | 3,800,323 | 3,669,405 |
Obligations under finance leases | 36,649,223 | 37,798,582 |
Defined benefit obligations | 263,575 | 263,575 |
Specific payables |
|
|
Accrued liabilities | 475,769 | 492,869 |
Deferred income | 3,785,082 | 3,568,127 |
Deferred tax liabilities | 1,085,417 | 1,130,054 |
Other non-current liabilities |
|
|
Total non-current liabilities | 67,178,134 | 69,030,901 |
Total liabilities | 137,028,016 | 140,394,501 |
|
|
|
OWNER'S EQUITY |
|
|
Issued capital | 14,524,815 | 14,524,815 |
Other equity instruments |
|
|
Including: Preference shares |
|
|
Perpetual bonds |
|
|
Capital reserve | 26,270,841 | 26,270,841 |
Less: Treasury shares |
|
|
Other comprehensive income | -2,562,561 | -1,693,743 |
Specific reserves |
|
|
Surplus reserves | 9,177,905 | 9,177,905 |
General risk provisions | 69,742 | 69,742 |
Retained earnings | 40,772,865 | 38,144,663 |
Total owner's equity attributable to equity shareholders of the Company | 88,253,607 | 86,494,223 |
Non-controlling interests | 9,339,296 | 8,829,092 |
Total owner's equity | 97,592,903 | 95,323,315 |
Total liabilities and owner's equity | 234,620,919 | 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
31 March 2018
Prepared by Air China Limited
Unit: RMB'000 (Unaudited)
Items | Balance at the end of the Period | Balance at the beginning of the year |
|
| (Restated) |
|
|
|
CURRENT ASSETS: |
|
|
Cash and bank | 3,576,579 | 3,172,520 |
Financial assets at fair value through profit or loss |
|
|
Derivative financial assets |
|
|
Bills receivable |
|
|
Accounts receivable | 3,621,654 | 3,534,850 |
Prepayments | 668,002 | 2,612,939 |
Interest receivable |
|
|
Dividend receivable |
|
|
Other receivables | 1,766,000 | 1,913,843 |
Inventories | 107,680 | 97,900 |
Held-for-sale assets | 194,303 | 283,562 |
Non-current assets due within a year | 1,020,000 | - |
Other current assets | 1,576,356 | 1,173,376 |
Total current assets | 12,530,574 | 12,788,990 |
|
|
|
Items | Balance at the end of the Period | Balance at the beginning of the year |
|
| (Restated) |
|
|
|
NON-CURRENT ASSETS: |
|
|
Financial assets at fair value through other comprehensive income | 22,783 | - |
Entrusted loans | - | 1,020,000 |
Available-for-sale financial assets | - | 22,783 |
Held-to-maturity investments |
|
|
Long-term receivables | 427,379 | 449,913 |
Long-term equity investments | 27,515,969 | 27,325,997 |
Investment properties |
|
|
Fixed assets | 106,888,415 | 106,694,613 |
Construction in progress | 22,513,260 | 20,856,626 |
Construction materials |
|
|
Disposal of fixed assets |
|
|
Biological assets for production |
|
|
Oil and gas assets |
|
|
Intangible assets | 2,734,141 | 2,758,672 |
Development expenses |
|
|
Goodwill |
|
|
Long-term deferred expenses | 303,878 | 312,285 |
Deferred tax assets | 2,103,103 | 2,034,870 |
Other non-current assets |
|
|
Total non-current assets | 162,508,928 | 161,475,759 |
Total assets | 175,039,502 | 174,264,749 |
|
|
|
Items | Balance at the end of the Period | Balance at the beginning of the year |
|
| (Restated) |
|
|
|
CURRENT LIABILITIES: |
|
|
Short-term loans | 11,674,723 | 11,538,000 |
Financial liabilities at fair value through profit or loss |
|
|
Derivative financial liabilities |
|
|
Bills payable |
|
|
Accounts payable | 12,644,177 | 11,975,550 |
Domestic air traffic liabilities | 1,483,040 | 1,702,630 |
International air traffic liabilities | 3,842,322 | 4,097,351 |
Receipts in advance | 73,421 | 183,194 |
Employee compensations payable | 657,539 | 852,023 |
Taxes payable | 1,173,668 | 1,240,223 |
Interest payable | 464,749 | 542,539 |
Dividend payable |
|
|
Other payables | 7,615,386 | 7,737,002 |
Held-for-sale liabilities |
|
|
Non-current liabilities due within a year | 8,499,410 | 8,738,784 |
Other current liabilities |
|
|
Total current liabilities | 48,128,435 | 48,607,296 |
|
|
|
NON-CURRENT LIABILITIES: |
|
|
Long-term loans | 1,831,800 | 1,871,198 |
Debentures payable | 14,500,000 | 14,500,000 |
Including: Preference shares |
|
|
Perpetual bonds |
|
|
Long-term payables | 2,027,956 | 1,928,023 |
Obligations under finance leases | 22,594,206 | 23,643,577 |
Defined benefit obligations |
|
|
Specific payables |
|
|
Accrued liabilities | 141,611 | 158,711 |
Deferred income | 3,149,413 | 2,935,541 |
Deferred tax liabilities |
|
|
Other non-current liabilities |
|
|
Total non-current liabilities | 44,244,986 | 45,037,050 |
Total liabilities | 92,373,421 | 93,644,346 |
|
|
|
Items | Balance at the end of the Period | Balance at the beginning of the year |
|
| (Restated) |
|
|
|
OWNER'S EQUITY: |
|
|
Issued capital | 14,524,815 | 14,524,815 |
Other equity instruments |
|
|
Including: Preference shares |
|
|
Perpetual bonds |
|
|
Capital reserve | 30,618,680 | 30,618,680 |
Less: Treasury shares |
|
|
Other comprehensive income | 219,029 | 219,029 |
Specific reserves |
|
|
Surplus reserves | 9,140,799 | 9,140,799 |
Retained earnings | 28,162,758 | 26,117,080 |
Total owner's equity | 82,666,081 | 80,620,403 |
Total liabilities and owner's equity | 175,039,502 | 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 March 2018
Prepared by Air China Limited
Unit: RMB'000 (Unaudited)
Items | Amounts for the Period | Amounts for the corresponding period of the previous year |
|
|
|
I. Revenue from operations | 31,606,754 | 28,968,982 |
Including: Revenue |
|
|
Interest income |
|
|
Premium earned |
|
|
Fees and commission income |
|
|
|
|
|
II. Total operating costs | 28,230,239 | 26,455,261 |
Including: Operating costs | 26,602,726 | 23,435,307 |
Interest expenses |
|
|
Fees and commission expenses |
|
|
Returned premium |
|
|
Net reimbursement paid |
|
|
Net amounts of provisions oninsurance contracts drawn |
|
|
Bonus paid on insurance policy |
|
|
Reinsurance premium |
|
|
Taxes and other levies | 34,984 | 62,818 |
Selling expenses | 1,498,159 | 1,528,115 |
General and Administrative expenses | 1,092,113 | 925,965 |
Finance expenses | -997,160 | 496,915 |
Impairment loss of assets | -583 | 6,141 |
Add: Gains from changes in fair value (loss is represented by "-" sign) | 4,364 | 82 |
Investment income (loss is represented by "-" sign) | 133,484 | -141,592 |
Including: Share of profits less losses of associates and joint ventures | 124,259 | -153,770 |
Gains on disposal of assets (loss is represented by "-" sign) | -568 | - |
Exchange gains (loss is represented by "-" sign) |
|
|
Other income | 503,353 | - |
|
|
|
Items | Amounts for the Period | Amounts for the corresponding period of the previous year |
|
|
|
III. Profit from operations (loss is represented by "-" sign) | 4,017,148 | 2,372,211 |
Add: Non-operating income | 13,358 | 53,977 |
Including: Gains arising from disposal ofnon-current assets | 1,028 | 145 |
Less: Non-operating expenses | 6,219 | 6,366 |
Including: Loss arising from disposal ofnon-current assets | 2,002 | 1,635 |
|
|
|
IV. Total profit (total loss is represented by "-" sign) | 4,024,287 | 2,419,822 |
Less: Income Taxation | 846,567 | 610,832 |
|
|
|
V. Net profit (net loss is represented by "-" sign) | 3,177,720 | 1,808,990 |
(I) Classified by continuity of operations |
|
|
1. Net profit from continuing operations (net loss is represented by "-" sign) | 3,177,720 | 1,808,990 |
2. Net profit from discontinued operations (net loss is represented by "-" sign) |
|
|
(II) Classified by ownership of equity |
|
|
1. Net profits attributable to non-controlling interests | 549,518 | 342,590 |
2. Net profits attributable to shareholders of the Company | 2,628,202 | 1,466,400 |
|
|
|
VI. Other comprehensive income after taxation | -903,232 | -157,907 |
Other comprehensive income after taxation attributable to shareholders of the Company | -868,818 | -155,530 |
(I) Other comprehensive income that cannot be subsequently reclassified to profit or loss |
|
|
1. Change arising from re-measurement of net liabilities or net assets in defined benefit plans |
|
|
2. Share of other comprehensive income of the investees accounted for using the equity method that cannot be reclassified to profit or loss |
|
|
|
|
|
Items | Amounts for the Period | Amounts for the corresponding period of the previous year |
|
|
|
(II) Other comprehensive income that will be subsequently reclassified to profit or loss | -868,818 | -155,530 |
1. Share of other comprehensive income of the investees accounted for using the equity method that will be subsequently reclassified to profit or loss |
|
|
2. Gains or losses arising from changes in fair value of available-for-sale financial assets | -10,491 | 2,389 |
3. Gains or losses arising from reclassification of held-to-maturity investments to available-for-sale financial assets |
|
|
4. Effective portion of profit or loss on cash flow hedge |
|
|
5. Exchange difference on translation of financial statements in foreign currency | -858,327 | -157,919 |
6. Others |
|
|
Other comprehensive income after taxation attributable to non-controlling interests | -34,414 | -2,377 |
|
|
|
VII. Total comprehensive income | 2,274,488 | 1,651,083 |
Total comprehensive income attributable to shareholders of the Company | 1,759,384 | 1,310,870 |
Total comprehensive income attributable to non-controlling interests | 515,104 | 340,213 |
|
|
|
VIII. Earnings per share: |
|
|
(I) Basic earnings per share (RMB per share) | 0.19 | 0.11 |
(II) Diluted earnings per share (RMB per share) | N/A | N/A |
For the business combination under common control for the Period, the net profit achieved by the combined party before the combination is RMB0, the net profit of last period achieved by the combined party is RMB0.
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 March 2018
Prepared by Air China Limited
Unit: RMB'000 (Unaudited)
Items | Amounts for the Period | Amounts for the corresponding period of the previous year |
|
|
|
I. Revenue from operations | 21,061,803 | 19,511,606 |
Less: Operating costs | 17,862,405 | 15,958,142 |
Taxes and other levies | 2,492 | 18,601 |
Selling expenses | 1,125,788 | 1,153,433 |
General and Administrative expenses | 409,287 | 363,780 |
Finance expenses | -448,853 | 400,399 |
Impairment loss of assets |
|
|
Add: Gains from changes in fair value (loss is represented by "-" sign) |
|
|
Investment income (loss is represented by "-" sign) | 195,798 | 85,092 |
Including: Share of profits less losses of associates and joint ventures | 189,972 | 85,092 |
Income from disposal of assets (loss is represented by "-" sign) |
|
|
Other income | 312,229 | - |
|
|
|
II. Profit from operations (loss is represented by "-" sign) | 2,618,711 | 1,702,343 |
Add: Non-operating income | 2,169 | 15,553 |
Including: Gains arising from disposal of non-current assets | 825 | 13 |
Less: Non-operating expenses | 4,246 | 2,683 |
Including: Loss arising from disposal of non-current assets | 1,406 | - |
|
|
|
III. Total profit (total loss is represented by "-" sign) | 2,616,634 | 1,715,213 |
Less: Income Taxation | 570,956 | 384,468 |
|
|
|
IV. Net profit (net loss is represented by "-" sign) | 2,045,678 | 1,330,745 |
(I) Net profit from continuing operations (net loss is represented by "-" sign) | 2,045,678 | 1,330,745 |
(II) Net profit from discontinued operations (net loss is represented by "-" sign) |
|
|
|
|
|
Items | Amounts for the Period | Amounts for the corresponding period of the previous year |
|
|
|
V. Other comprehensive income after taxation |
|
|
(I) Other comprehensive income that cannot be subsequently reclassified to profit or loss |
|
|
1. Change arising from re-measurement of net liabilities or net assets in defined benefit plans |
|
|
2. Share of other comprehensive income of the investees accounted for using the equity method that cannot be reclassified to profit or loss |
|
|
|
|
|
(II) Other comprehensive income that will be subsequently reclassified to profit or loss |
|
|
1. Share of other comprehensive income of the investees accounted for using the equity method that will be subsequently reclassified to profit or loss |
|
|
2. Gains or losses arising from changes in fair value of available-for-sale financial assets |
|
|
3. Gains or losses arising from reclassification of held-to-maturity investments to available-for-sale financial assets |
|
|
4. Effective portion of profit or loss on cash flow hedge |
|
|
5. Exchange difference on translation of financial statements in foreign currency |
|
|
6. Others |
|
|
|
|
|
VI. Total comprehensive income | 2,045,678 | 1,330,745 |
|
|
|
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 March 2018
Prepared by Air China Limited
Unit: RMB'000 (Unaudited)
Items | Amounts for the Period | Amounts for the corresponding period of the previous year |
|
|
|
I. Cash flows from operating activities: |
|
|
Cash received from sales of goods and provision of services | 32,612,171 | 29,017,429 |
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 | 52,298 | 7,267 |
Other cash received relating to operating activities | 2,073,744 | 725,989 |
Subtotal of cash inflows of operating activities | 34,738,213 | 29,750,685 |
Cash paid for goods purchased and services received | 17,045,091 | 18,515,079 |
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 | 6,098,999 | 5,378,811 |
Tax and levies paid | 1,977,075 | 1,401,135 |
Other cash paid relating to operating activities | 2,379,420 | 1,983,111 |
Subtotal of cash outflows from operating activities | 27,500,585 | 27,278,136 |
Net cash flows from operating activities | 7,237,628 | 2,472,549 |
|
|
|
Items | Amounts for the Period | Amounts for the corresponding period of the previous year |
|
|
|
II. Cash flows from investment activities: |
|
|
Cash received from sales and redemption of investments | 43,720 | - |
Recovery of the secured bank deposits | 2,114 | - |
Cash received from investment income | 8,825 | 13,031 |
Net cash proceeds from disposal of fixed assets, intangible assets and other long-term assets | 190,982 | 372,961 |
Net cash proceeds from disposal of subsidiaries and other business units |
|
|
Other cash received relating to investment activities | 42,027 | 34,144 |
Subtotal of cash inflows from investment activities | 287,668 | 420,136 |
Cash paid for purchase of fixed assets, intangible assets and other long-term assets | 4,266,407 | 3,332,804 |
Cash paid for investments | - | 85,551 |
Net increase in secured loans |
|
|
Net cash payments for acquisition of subsidiaries and other business units |
|
|
Other cash paid relating to investment activities | 3,620 | 868 |
Subtotal of cash outflows from investment activities | 4,270,027 | 3,419,223 |
Net cash flows from investment activities | -3,982,359 | -2,999,087 |
|
|
|
III. Cash flows from financing activities: |
|
|
Cash received from capital injection | - | 11,201,374 |
Including: Cash received from capital injection ofnon-controlling shareholders in subsidiaries |
|
|
Cash received from borrowings | 8,991,154 | 9,558,000 |
Cash received from issue of debentures | 500,000 | - |
Other cash received relating to financing activities |
|
|
Subtotal of cash inflows from financing activities | 9,491,154 | 20,759,374 |
Cash paid for repayment of borrowings | 9,556,697 | 8,613,146 |
Cash paid for repayment of debentures | 600,000 | 1,200,000 |
Cash paid for distribution of dividends, profits or payment of interest expenses | 857,545 | 851,181 |
Including: Dividends and profits paid to non-controlling shareholders by subsidiaries | 4,900 | - |
Cash paid for finance leases | 1,452,860 | 1,259,774 |
Other cash paid relating to financing activities |
|
|
Subtotal of cash outflows from financing activities | 12,467,102 | 11,924,101 |
Net cash flows from financing activities | -2,975,948 | 8,835,273 |
|
|
|
Items | Amounts for the Period | Amounts for the corresponding period of the previous year |
|
|
|
IV. Effect of exchange rate changes on cash and cash equivalents | -65,147 | -12,293 |
|
|
|
V. Net increase in cash and cash equivalents | 214,174 | 8,296,442 |
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 | 5,777,081 | 15,144,460 |
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 March 2018
Prepared by Air China Limited
Unit: RMB'000 (Unaudited)
Items | Amounts for the Period | Amounts for the corresponding period of the previous year |
|
|
|
I. Cash flows from operating activities: |
|
|
Cash received from sales of goods and provision of services | 21,296,041 | 19,071,678 |
Refund of tax and levy |
|
|
Other cash received relating to operating activities | 871,437 | 560,776 |
Subtotal of cash inflows of operating activities | 22,167,478 | 19,632,454 |
Cash paid for goods purchased and services received | 11,351,029 | 13,981,210 |
Cash paid to or on behalf of employees | 2,701,246 | 2,152,973 |
Tax and levies paid | 1,101,422 | 936,328 |
Other cash paid relating to operating activities | 1,409,773 | 1,573,503 |
Subtotal of cash outflows from operating activities | 16,563,470 | 18,644,014 |
Net cash flows from operating activities | 5,604,008 | 988,440 |
|
|
|
II. Cash flows from investment activities: |
|
|
Cash received from sales and redemption of investments |
|
|
Cash received from investment income | 5,826 | 86,818 |
Net cash proceeds from disposal of fixed assets, intangible assets and other long-term assets | 456,996 | 362,761 |
Net cash proceeds from disposal of subsidiaries and other business units |
|
|
Other cash received relating to investment activities | 13,563 | 14,420 |
Subtotal of cash inflows from investment activities | 476,385 | 463,999 |
Cash paid for purchase of fixed assets, intangible assets and other long-term assets | 4,078,474 | 2,252,618 |
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 | 4,078,474 | 2,252,618 |
Net cash flows from investment activities | -3,602,089 | -1,788,619 |
|
|
|
Items | Amounts for the Period | Amounts for the corresponding period of the previous year | ||
|
|
| ||
III. Cash flows from financing activities: |
|
| ||
Cash received from capital injection | - | 11,201,374 |
| |
Cash received from borrowings | 6,797,791 | 7,673,000 |
| |
Other cash received relating to financing activities |
|
|
| |
Subtotal of cash inflows from financing activities | 6,797,791 | 18,874,374 |
| |
Cash paid for repayment of borrowings | 6,688,145 | 7,757,232 |
| |
Cash paid for distribution of dividends, profits or payment of interest expenses | 580,362 | 603,237 |
| |
Cash paid for finance leases | 1,104,422 | 1,067,048 |
| |
Other cash paid relating to financing activities |
|
|
| |
Subtotal of cash outflows from financing activities | 8,372,929 | 9,427,517 |
| |
Net cash flows from financing activities | -1,575,138 | 9,446,857 |
| |
|
|
|
| |
IV. Effect of exchange rate changes on cash and cash equivalents | -22,722 | 3,946 |
| |
|
|
|
| |
V. Net increase in cash and cash equivalents | 404,059 | 8,650,624 |
| |
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 | 3,576,579 | 10,872,576 |
| |
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 Not applicable
By Order of the Board
Air China Limited
Zhou Feng Tam Shuit Mui
Joint Company Secretaries
Beijing, the PRC, 26 April 2018
As at the date of this announcement, the directors of the Company are Mr. Cai Jianjiang, Mr. Song Zhiyong, Mr. John Robert Slosar, Mr. Xue Yasong, Mr. Wang Xiaokang*, Mr. Liu Deheng*, Mr. Stanley Hui Hon-chung* and Mr. Li Dajin*.
* Independent non-executive director of the Company