Last checked at 29 Apr 2016 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.
AIR CHINA LIMITED
(a joint stock limited company incorporated in the People's Republic of China with limited liability)
(Stock Code:00753)
FIRST QUARTERLY REPORT 2016
This announcement is made pursuant to Rule 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.
The board of directors (the "Board") of Air China Limited (the "Company") held a meeting of the Board on 28 April 2016 and passed the resolution approving the first quarterly report 2016 of the Company for the first quarter ended 31 March 2016 (the "Reporting Period") prepared in accordance with the PRC Accounting Standards.
1. IMPORTANT NOTICE
1.1 The Board, the supervisory committee, as well as the directors, supervisors and senior management of the Company hereby confirm that there are no misrepresentation or misleading statements contained in or material omissions from this report, and jointly and severally accept full responsibility for the truthfulness, accuracy and completeness of the contents of this quarterly report.
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 | - |
Feng Gang | Director | Business engagement | Cai Jianjiang |
1.3 Mr. Cai Jianjiang (legal representative of the Company), Mr. Xiao Feng (person in charge of accounting function), and Mr. Zhan Zhong (person in charge of accounting department (accounting superintendent) and general manager of the finance department) hereby confirm 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. MAJOR FINANCIAL DATA OF THE COMPANY AND CHANGES IN SHAREHOLDERS
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 (%) | |
Total assets | 219,221,265 | 213,703,535 | 2.58 |
Net asset attributable to shareholders of the listed company | 62,140,930 | 59,820,396 | 3.88 |
For the period from the beginning of the year to the end of the Reporting Period (January to March) | For the corresponding period of the previous year (January to March) (restated) | Increase/decrease as compared to the corresponding period of the previous year (%) | |
Net cash flows from operating activities | 6,819,194 | 5,686,831 | 19.91 |
For the period from the beginning of the year to the end of the Reporting Period (January to March) | For the corresponding period of the previous year (January to March) (restated) | Increase/decrease as compared to the corresponding period of the previous year (%) | |
Revenue | 26,388,811 | 25,281,398 | 4.38 |
Net profit attributable to shareholders of the listed company | 2,435,293 | 1,681,472 | 44.83 |
Net profit attributable to shareholders of the listed company after deductingnon-recurring profits and losses | 2,384,011 | 1,596,426 | 49.33 |
Weighted average return on net assets (%) | 3.99 | 3.05 | Increased by 0.94 ppts |
Basic earnings per share (RMB per share) | 0.20 | 0.14 | 44.83 |
Diluted earnings per share (RMB per share) | N/A | N/A | N/A |
Non-recurring profits and losses
|X| Applicable Not applicable
Unit: RMB'000
Items | Amounts for the period |
Gains or losses on disposal of non-current assets | -1,469 |
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) | 94,281 |
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) | 126 |
Other non-operating income and expenses not covered above | 14,452 |
Effect of minority shareholders' interests (after tax) | -28,407 |
Effect of income tax | -27,701 |
| |
Total | 51,282 |
|
2.2 Total number of shareholders, the top 10 shareholders and the top 10 shareholders not subject to selling restrictions as at the end of the Reporting Period
Unit: share | |||||||
Total number of shareholders | 223,056 | ||||||
Particulars of the top 10 shareholders | |||||||
Name of shareholder (full name) | Shares held at the end of the period | Shareholding percentage (%) | Shares held subject to selling restrictions |
Shares pledged or frozen | Nature of shareholder | ||
Status | Number | ||||||
China National Aviation Holding Company | 5,438,757,879 | 41.57 | Frozen | 127,445,536 | State | ||
Cathay Pacific Airways Limited | 2,633,725,455 | 20.13 | Nil | Foreign legal person | |||
HKSCC NOMINEES LIMITED | 1,682,314,520 | 12.86 | Unknown | Foreign legal person | |||
China National Aviation Corporation (Group) Limited | 1,556,334,920 | 11.89 | Frozen | 36,454,464 | Foreign legal person | ||
China Securities Finance Corporation Limited | 243,634,353 | 1.86 | Unknown | State-owned legal person | |||
China National Aviation Fuel Group Corporation | 86,300,000 | 0.66 | Unknown | State-owned legal person | |||
Sinotrans Air Transportation Development Co., Ltd. | 75,800,000 | 0.58 | Unknown | State-owned legal person | |||
China Merchants Securities Co., Ltd. | 50,492,570 | 0.39 | Unknown | Unknown | |||
National Social Security Fund 108 | 25,999,948 | 0.20 | Unknown | Unknown | |||
Bank of China - E Fund Steady Return Debt Securities Investment Fund (易方達穩健收益債券型證券投資基金) | 25,009,658 | 0.19 | Unknown | 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 Holding Company | 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 | 1,682,314,520 | Overseas listed foreign shares | 1,682,314,520 |
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 Securities Finance Corporation Limited | 243,634,353 | RMB ordinary shares | 243,634,353 |
China National Aviation Fuel Group Corporation | 86,300,000 | RMB ordinary shares | 86,300,000 |
Sinotrans Air Transportation Development Co., Ltd. | 75,800,000 | RMB ordinary shares | 75,800,000 |
China Merchants SecuritiesCo., Ltd. | 50,492,570 | RMB ordinary shares | 50,492,570 |
National Social Security Fund 108 | 25,999,948 | RMB ordinary shares | 25,999,948 |
Bank of China - E Fund Steady Return Debt Securities Investment Fund (易方達穩健收益債券型證券投資基金) | 25,009,658 | RMB ordinary shares | 25,009,658 |
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 Company. Accordingly, China National Aviation Holding Company is directly and indirectly interested in 53.46% of the shares of the Company. | ||
Explanation of holders of preference shares with restored voting rights and number of shares held | Nil | ||
Note:
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 1,682,314,520 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 Company, 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 |X| 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
|X| Applicable Not applicable
Total profit of the Group for the first quarter of 2016 was RMB3,678 million, representing a year-on-year increase of RMB1,248 million; net profit attributable to the Company was RMB2,435 million, representing a year-on-year increase of RMB754 million. The increases in total profit of the Group and net profit attributable to the Company were mainly due to the year-on-year increase in revenue as a result of optimised operational arrangement and increased capacity deployment; the strengthened cost control through refining the management of business process and actively advancing the measures of "promoting direct sales and lowering agency fees"; and the year-on-year decrease in aviation fuel cost and the year-on-year increase in net exchange gain resulted from the low oil price and the change in exchange rate of US dollars against RMB.
Unit: RMB'000
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 |
Short-term loans | 6,741,255 | 3,055,641 | 3,685,614 | 120.62% | Mainly due to the new short-term loans based on the funding needs. |
Short-term bonds payable | 6,797,651 | 2,598,843 | 4,198,808 | 161.56% | The Group issued short-term bonds during the reporting period. |
Domestic air traffic liabilities | 1,614,614 | 2,619,395 | -1,004,781 | -38.36% | Decrease in outstanding air traffic tickets at the end of this Reporting Period. |
Items in consolidated income statement | For the period from the beginning of the year to the end of the Reporting Period (January to March) | For the corresponding period of the previous year (January to March) (restated) | Amount of Change | Percentage | Reasons for Change |
Finance expenses | 616,743 | 1,109,056 | -492,313 | -44.39% | Mainly due to net foreign exchange gain recognized during the reporting period as a result of the appreciation of RMB against US$, as compared to net foreign exchange loss of the corresponding period of the previous year. |
Income tax expenses | 795,430 | 518,121 | 277,309 | 53.52% | Increase in income tax expenses due to the increase in taxable income during the Reporting Period. |
Items in consolidated statement of cash flows | For the period from the beginning of the year to the end of the Reporting Period (January to March) | For the corresponding period of the previous year (January to March) (restated) | Amount of Change | Percentage | Reasons for Change |
Tax and levies paid | 1,086,502 | 612,207 | 474,295 | 77.47% | Increase in corporate income taxes paid as compared to the corresponding period of the previous year. |
Other cash paid relating to operating activities | 1,868,151 | 3,088,159 | -1,220,008 | -39.51% | The decreased net amount in loans issued by a subsidiary of the Group to a related party during the Reporting Period as compared to the corresponding period of the previous year. |
Cash received from other investment activities | 283,413 | 47,564 | 235,849 | 495.86% | Greater decrease in the balance of secured deposits during the Reporting Period as compared to the corresponding period of the previous year. |
Cash paid for purchase of fixed assets, intangible assets and other long-term assets | 6,995,326 | 3,408,344 | 3,586,982 | 105.24% | Increase in prepayments for the purchase of aircraft and payment of the balance of purchase prices upon the delivery of aircraft during the Reporting Period as compared to the corresponding period of the previous year. |
Cash received from borrowings | 7,485,382 | 4,995,568 | 2,489,814 | 49.84% | Increase in borrowings during the Reporting Period. |
Cash received from issue of bonds | 4,800,000 | 600,000 | 4,200,000 | 700.00% | Increase in short-term bonds issued during the Reporting Period as compared to the corresponding period of the previous year. |
Cash paid for repayment of bonds | 600,000 | 0 | 600,000 | 100.00% | Repayment of short-term bonds by a subsidiary of the Group during the Reporting Period. |
3.2 Analysis and explanation on the progress of significant events and their impact and resolutions
|X| Applicable Not applicable
At the 21st meeting of the fourth session of the Board and the 25th meeting of the fourth session of the Board of the Company, the Board approved the Company's proposed non-public offering of A shares not exceeding RMB12.0 billion (inclusive) to not more than 10 (inclusive) specified targets (including China National Aviation Holding Company, the controlling shareholder of the Company), with the total number of shares to be issued under non-public offering not exceeding 1,520,912,547 shares (inclusive) and the issue price not less than RMB7.89 per share. China National Aviation Holding Company will commit no more than RMB4,000 million to subscribe for not more than 506,970,849 shares at the issue price. The matter was considered and approved at the first extraordinary general meeting in 2016, the first A shareholders' class meeting in 2016 and the first H shareholders' class meeting in 2016 held on 26 January 2016. Please refer to the announcement dated 26 January 2016 and published by the Company on the website of The Stock Exchange of Hong Kong Limited (www.hkexnews.hk), the website of Shanghai Stock Exchange (www.sse.com.cn) and the China Securities Journal, Shanghai Securities News and Securities Daily.
On 5 February 2016, China Securities Regulatory Commission (hereinafter referred to as "CSRC") accepted the administrative permission application materials of the "Non-public Issuance for Listed Companies" submitted by the Company, and issued the "Notice regarding CSRC's Feedback on the Review of Administrative Permission Items" (《中國證監會行政許可項目審查反饋意見通知書》) on 8 March 2016. The Company will reply in writing to the CSRC within the prescribed time limit. Please refer to the announcements dated 5 February 2016 and 11 March 2016 and published by the Company on the website of The Stock Exchange of Hong Kong Limited (www.hkexnews.hk), the website of Shanghai Stock Exchange (www.sse.com.cn) and the China Securities Journal, Shanghai Securities News and Securities Daily.
3.3 Performance of undertakings given by the Company and the shareholders holding more than 5% of the shares of the Company
|X| Applicable Not applicable
Background of undertakings | Type of undertakings | The party making the undertakings | Contents of undertakings | Date and duration of undertakings | Is there performance duration? | Are they timely and strictly performed? |
Other undertakings | Shares sale restriction | CNAHC | On 3 August 2015, China National Aviation Holding Company ("CNAHC") increased its shareholding in the Company by 8,691,786 A shares via the trading system of the Shanghai Stock Exchange, representing 0.0664% of the total issued share capital of the Company (the "First Share Acquisition"). CNAHC intends to continue to increase its shareholdings in the Company, either in its own name or through parties acting in concert with it, via the secondary market within 12 months from 3 August 2015 up to an aggregate amount not exceeding 2% of the total issued share capital of the Company (including the increased shareholdings in the First Share Acquisition). CNAHC undertakes that it will not sell any shares it holds in the Company during the period of the implementation of the acquisition plan and within the statutory period. | The undertakings were made on 3 August 2015 and shall be fulfilled on or before 2 August 2016. | Yes | Yes |
3.4 Warning in respect of forecast of possible net loss from the beginning of the year to the end of the next reporting period or warning in respect of any significant changes in net profit as compared with that of the corresponding period of previous year and the underlying reasons
Applicable |X| Not applicable
Company name | Air China Limited | |
Legal representative | Cai Jianjiang | |
Date | 28 April 2016 |
4. APPENDIX
4.1 Financial Statements
Consolidated Balance Sheet
31 March 2016
Prepared by Air China Limited
Unit: RMB'000 (Unaudited)
Items | Balance at the end of the period | Balance at the beginning of the year |
CURRENT ASSETS: | ||
Cash and bank balances | 8,816,113 | 7,793,044 |
Provisions on payables | ||
Contributions made | ||
Financial assets | 913 | 995 |
Derivative financial assets | ||
Bills receivable | 627 | 224 |
Accounts receivable | 3,424,541 | 3,661,354 |
Prepayments | 1,098,694 | 1,069,263 |
Premium receivable | ||
Receivables on reinsurance | ||
Provisions for reinsurance contracts | ||
Interest receivable | ||
Dividend receivable | ||
Other receivables | 1,981,766 | 1,882,945 |
Purchase of financial assets resold | ||
Inventories | 1,887,489 | 1,730,742 |
Assets held for sale | 517,784 | 582,074 |
Non-current assets due within a year | ||
Other current assets | 3,371,614 | 2,806,973 |
Total current assets | 21,099,541 | 19,527,614 |
NON-CURRENT ASSETS: | ||
Loans and advances | ||
Available-for-sale financial assets | 1,192,975 | 1,108,631 |
Held-to-maturity investments | 10,000 | 10,000 |
Long-term receivables | 626,413 | 598,312 |
Long-term equity investments | 12,650,954 | 12,451,024 |
Investment properties | 349,562 | 353,511 |
Fixed assets | 148,050,660 | 149,267,398 |
Construction in progress | 25,667,453 | 20,747,815 |
Construction materials | ||
Disposal of fixed assets | ||
Biological assets for production | ||
Oil and gas assets | ||
Intangible assets | 4,243,249 | 4,169,341 |
Development expenses | ||
Goodwill | 1,102,185 | 1,102,185 |
Long-term deferred expenses | 677,187 | 683,325 |
Deferred tax assets | 3,551,086 | 3,684,379 |
Other non-current assets | ||
Total non-current assets | 198,121,724 | 194,175,921 |
Total assets | 219,221,265 | 213,703,535 |
CURRENT LIABILITIES: | ||
Short-term loans | 6,741,255 | 3,055,641 |
Short-term bonds payable | 6,797,651 | 2,598,843 |
Borrowings from central bank | ||
Deposits from clients and placements from other banks | ||
Contributions received | ||
Financial liabilities at fair value through profit or loss | ||
Derivative financial liabilities | ||
Bills payable | 0 | 11,646 |
Accounts payable | 13,117,954 | 11,747,465 |
Domestic air traffic liabilities | 1,614,614 | 2,619,395 |
International air traffic liabilities | 2,816,438 | 3,139,838 |
Receipts in advance | 159,442 | 148,505 |
Sale of financial assets repurchased | ||
Fees and commissions payable | ||
Employee compensations payable | 1,635,843 | 1,933,927 |
Taxes payable | 1,379,728 | 1,304,379 |
Interest payable | 723,254 | 679,394 |
Dividend payable | ||
Other payables | 9,327,217 | 10,574,693 |
Amounts payable on reinsurance | ||
Reserves on insurance contracts | ||
Brokerage payable | ||
Underwriting fees payable | ||
Liabilities held for sale | ||
Non-current liabilities due within a year | 11,554,178 | 12,399,620 |
Other current liabilities | ||
Total current liabilities | 55,867,574 | 50,213,346 |
NON-CURRENT LIABILITIES: | ||
Long-term loans | 28,062,449 | 30,794,484 |
Debentures payable | 18,193,789 | 18,193,038 |
Including: Preference shares | ||
Perpetual bonds | ||
Long-term payables | 3,235,212 | 3,122,381 |
Obligations under finance leases | 37,150,243 | 37,803,279 |
Deferred benefit obligations | 276,968 | 276,968 |
Specific payables | ||
Estimated liabilities | 347,465 | 347,465 |
Deferred income | 3,729,760 | 3,489,698 |
Deferred tax liabilities | 2,986,300 | 2,867,738 |
Other non-current liabilities | ||
Total non-current liabilities | 93,982,186 | 96,895,051 |
Total liabilities | 149,849,760 | 147,108,397 |
OWNER'S EQUITY | ||
Issued capital | 13,084,751 | 13,084,751 |
Other equity instruments | ||
Including: Preference shares | ||
Perpetual bonds | ||
Capital reserve | 16,509,531 | 16,509,531 |
Less: Treasury shares | ||
Other comprehensive income | -5,821,820 | -5,707,061 |
Specific reserves | ||
Surplus reserves | 6,633,105 | 6,633,105 |
General risk provisions | 54,951 | 54,951 |
Retained earnings | 31,680,412 | 29,245,119 |
Total owner's equity attributable to equity shareholders of the Company | 62,140,930 | 59,820,396 |
Non-controlling interests | 7,230,575 | 6,774,742 |
Total owner's equity | 69,371,505 | 66,595,138 |
Total liabilities and owner's equity | 219,221,265 | 213,703,535 |
Legal representative: Cai Jianjiang
Person in charge of accounting function: Mr. Xiao Feng
Person in charge of accounting department: Mr. Zhan Zhong (general manager of the finance department)
Balance Sheet of the Company
31 March 2016
Prepared by Air China Limited
Unit: RMB'000 (Unaudited)
Items | Balance at the end of the period | Balance at the beginning of the year |
CURRENT ASSETS: | ||
Cash and bank balances | 2,369,123 | 3,223,977 |
Financial assets | ||
Derivative financial assets | ||
Bills receivable | ||
Accounts receivable | 2,592,101 | 2,556,398 |
Prepayments | 637,865 | 523,523 |
Interest receivable | ||
Dividend receivable | ||
Other receivables | 2,012,424 | 1,956,110 |
Inventories | 229,517 | 243,332 |
Assets held for sale | 517,784 | 582,074 |
Non-current assets due within a year | ||
Other current assets | 1,930,737 | 1,341,946 |
Total current assets | 10,289,551 | 10,427,360 |
NON-CURRENT ASSETS: | ||
Available-for-sale financial assets | 22,784 | 22,784 |
Held-to-maturity investments | ||
Entrusted loans | 1,020,000 | 1,020,000 |
Long-term receivables | 420,933 | 412,808 |
Long-term equity investments | 26,606,144 | 26,434,219 |
Investment properties | ||
Fixed assets | 96,732,126 | 97,789,608 |
Construction in progress | 20,883,842 | 16,078,952 |
Construction materials | ||
Disposal of fixed assets | ||
Biological assets for production | ||
Oil and gas assets | ||
Intangible assets | 2,538,586 | 2,550,926 |
Development expenses | ||
Goodwill | ||
Long-term deferred expenses | 309,159 | 325,631 |
Deferred tax assets | 1,913,496 | 1,913,496 |
Other non-current assets | ||
Total non-current assets | 150,447,070 | 146,548,424 |
Total assets | 160,736,621 | 156,975,784 |
CURRENT LIABILITIES: | ||
Short-term loans | 5,454,099 | 2,489,992 |
Short-term debenture payable | 3,000,000 | 0 |
Financial liabilities at fair value through profit or loss | ||
Derivative financial liabilities | ||
Bills payable | ||
Accounts payable | 10,611,691 | 8,992,025 |
Domestic air traffic liabilities | 1,166,933 | 1,760,537 |
International air traffic liabilities | 2,526,959 | 2,826,463 |
Receipts in advance | 80,041 | 84,063 |
Employee compensations payable | 582,289 | 606,644 |
Taxes payable | 996,419 | 1,023,839 |
Interest payable | 560,514 | 553,479 |
Dividend payable | ||
Other payables | 6,599,792 | 8,674,617 |
Held-for-sale liabilities | ||
Non-current liabilities due within a year | 7,167,362 | 7,990,488 |
Other current liabilities | ||
Total current liabilities | 38,746,099 | 35,002,147 |
NON-CURRENT LIABILITIES: | ||
Long-term loans | 15,721,559 | 17,156,055 |
Debentures payable | 16,000,000 | 16,000,000 |
Including: Preference shares | ||
Perpetual bonds | ||
Long-term payables | 1,768,166 | 1,768,166 |
Obligations under finance leases | 24,893,717 | 25,446,576 |
Deferred benefit obligations | ||
Specific payables | ||
Estimated liabilities | 13,206 | 13,206 |
Deferred income | 3,149,709 | 2,963,675 |
Deferred tax liabilities | 116,643 | 116,643 |
Other non-current liabilities | ||
Total non-current liabilities | 61,663,000 | 63,464,321 |
Total liabilities | 100,409,099 | 98,466,468 |
OWNER'S EQUITY: | ||
Issued capital | 13,084,751 | 13,084,751 |
Other equity instruments | ||
Including: Preference shares | ||
Perpetual bonds | ||
Capital reserve | 20,857,370 | 20,857,370 |
Less: Treasury shares | ||
Other comprehensive income | 182,037 | 182,037 |
Specific reserves | ||
Surplus reserves | 6,595,999 | 6,595,999 |
Retained earnings | 19,607,365 | 17,789,159 |
Total owner's equity | 60,327,522 | 58,509,316 |
Total liabilities and owner's equity | 160,736,621 | 156,975,784 |
Legal representative: Cai Jianjiang
Person in charge of accounting function: Mr. Xiao Feng
Person in charge of accounting department: Mr. Zhan Zhong (general manager of the finance department)
Consolidated Income Statement
January to March 2016
Prepared by Air China Limited
Unit: RMB'000 (Unaudited)
Items | Amounts for the period | Amounts for the corresponding period of the previous year (restated) |
I. Revenue from operations | 26,388,811 | 25,281,398 |
Including: Revenue | 26,388,811 | 25,281,398 |
Interest income | ||
Premium earned | ||
Fees and commission income | ||
II. Total operating costs | 23,149,069 | 23,172,633 |
Including: Operating costs | 20,031,270 | 19,562,003 |
Interest expenses | ||
Fees and commission expenses | ||
Returned premium | ||
Net reimbursement paid | ||
Net amounts of provisions on insurance contracts drawn | ||
Bonus paid on insurance policy | ||
Reinsurance premium | ||
Business taxes and other levies | 77,502 | 48,941 |
Selling expenses | 1,453,115 | 1,683,692 |
General and Administrative expenses | 963,807 | 766,997 |
Finance expenses | 616,743 | 1,109,056 |
Impairment loss of assets | 6,632 | 1,944 |
Add: Gains from changes in fair value (loss is represented by "-" sign) | 78 | 3,404 |
Investment income (loss is represented by "-" sign) | 330,690 | 194,423 |
Including: Share of profits less losses of associates and joint ventures | 315,674 | 184,807 |
Exchange gains (loss is represented by "-" sign) | ||
III. Profit from operations (loss is represented by "-" sign) | 3,570,510 | 2,306,592 |
Add: Non-operating income | 114,855 | 143,071 |
Including: Gains arising from disposal of non-current assets | 196 | 13 |
Less: Non-operating expenses | 7,590 | 19,715 |
Including: Loss arising from disposal of non-current assets | 1,664 | 314 |
IV. Total profit (total loss is represented by "-" sign) | 3,677,775 | 2,429,948 |
Less: Taxation | 795,430 | 518,121 |
V. Net profit (net loss is represented by "-" sign) | 2,882,345 | 1,911,827 |
Net profits attributable to shareholders of the Company | 2,435,293 | 1,681,472 |
Net profits attributable to non-controlling interests | 447,052 | 230,355 |
VI. Other comprehensive income after taxation | -115,201 | 60,375 |
Other comprehensive income after taxation attributable to shareholders of the Company | -114,759 | 56,647 |
(I) Other comprehensive income that cannot besubsequently 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 | -114,759 | 56,647 |
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 | 1,661 | 2,790 |
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 | -116,420 | 53,857 |
6. Others | ||
Other comprehensive income after taxation attributable to non-controlling interests | -442 | 3,728 |
VII. Total comprehensive income | 2,767,144 | 1,972,202 |
Total comprehensive income attributable to shareholders of the Company | 2,320,534 | 1,738,119 |
Total comprehensive income attributable to non-controlling interests | 446,610 | 234,083 |
VIII. Earnings per share: | ||
(I) Basic earnings per share (RMB) | 0.20 | 0.14 |
(II) Diluted earnings per share (RMB) | N/A | N/A |
Legal representative: Cai Jianjiang
Person in charge of accounting function: Mr. Xiao Feng
Person in charge of accounting department: Mr. Zhan Zhong (general manager of the finance department)
Income Statement of the Company
January to March 2016
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 | 17,873,234 | 17,575,841 |
Less: Operating costs | 13,743,590 | 13,436,927 |
Business taxes and other levies | 27,659 | 28,055 |
Selling expenses | 1,075,197 | 1,269,511 |
General and Administrative expenses | 366,783 | 400,412 |
Finance expenses | 529,088 | 849,237 |
Impairment loss of assets | ||
Add: Gains from changes in fair value (loss is represented by "-" sign) | ||
Investment income (loss is represented by "-" sign) | 172,900 | 37,822 |
Including: Share of profits less losses of associates and joint ventures | 172,900 | 37,264 |
II. Profit from operations (loss is represented by "-" sign) | 2,303,817 | 1,629,521 |
Add: Non-operating income | 30,743 | 16,471 |
Including: Gains arising from disposal of non-current assets | 52 | 8 |
Less: Non-operating expenses | 4,195 | 6,324 |
Including: Loss arising from disposal of non-current assets | 333 | 26 |
III. Total profit (total loss is represented by "-" sign) | 2,330,365 | 1,639,668 |
Less: Income Taxation | 512,159 | 380,478 |
IV. Net profit (net loss is represented by "-" sign) | 1,818,206 | 1,259,190 |
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 | 1,818,206 | 1,259,190 |
VII. Earnings per share: | ||
(I) Basic earnings per share (RMB per share) | ||
(II) Diluted earnings per share (RMB per share) |
Legal representative: Cai Jianjiang
Person in charge of accounting function: Mr. Xiao Feng
Person in charge of accounting department: Mr. Zhan Zhong (general manager of the finance department)
Consolidated Cash Flow Statement
January to March 2016
Prepared by Air China Limited
Unit: RMB'000 (Unaudited)
Items | Amounts for the period | Amounts for the corresponding period of the previous year (restated) |
I. Cash flows from operating activities: | ||
Cash received from sales of goods and provision of services | 26,625,375 | 25,409,856 |
Net increase in deposits from clients and placements from other banks | ||
Net increase in borrowings from central bank | ||
Net increase in contributions made to other financial institutions | ||
Cash received from premiums of original insurance contracts | ||
Net cash receipt from reinsurance operations | ||
Net increase in reserve of the insured and investment | ||
Net increase in disposal of 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 | 4,719 | 1,918 |
Other cash received relating to operating activities | 1,449,552 | 1,821,030 |
Subtotal of cash inflows of operating activities | 28,079,646 | 27,232,804 |
Cash paid for goods purchased and services received | 13,413,663 | 13,649,637 |
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 | 4,892,136 | 4,195,970 |
Tax and levies paid | 1,086,502 | 612,207 |
Other cash paid relating to operating activities | 1,868,151 | 3,088,159 |
Subtotal of cash outflows from operating activities | 21,260,452 | 21,545,973 |
Net cash flows from operating activities | 6,819,194 | 5,686,831 |
II. Cash flows from investment activities: | ||
Cash received from sales and redemption of investments | ||
Cash received from investment income | 15,990 | 1,118 |
Net cash proceeds from disposal of fixed assets, intangible assets and other long-term assets | 126,093 | 3,568 |
Net cash proceeds from disposal of subsidiaries and other business units | ||
Other cash received relating to operating activities | 283,413 | 47,564 |
Subtotal of cash inflows from investment activities | 425,496 | 52,250 |
Cash paid for purchase of fixed assets, intangible assets and other long-term assets | 6,995,326 | 3,408,344 |
Cash paid for investments | 81,296 | 0 |
Net increase in secured loans | ||
Net cash payments for acquisition of subsidiaries and other business units | ||
Other cash paid relating to investment activities | 149 | 181,695 |
Subtotal of cash outflows from investment activities | 7,076,771 | 3,590,039 |
Net cash flows from investment activities | -6,651,275 | -3,537,789 |
III. Cash flows from financing activities: | ||
Cash received from capital injection | ||
Including: Cash received from capital injection of minority shareholders in subsidiaries | ||
Cash received from borrowings | 7,485,382 | 4,995,568 |
Cash received from issue of debentures | 4,800,000 | 600,000 |
Other cash received relating to financing activities | ||
Subtotal of cash inflows from financing activities | 12,285,382 | 5,595,568 |
Cash paid for repayment of borrowings | 8,328,734 | 6,598,736 |
Cash paid for repayment of debentures | 600,000 | 0 |
Cash paid for distribution of dividends, profits or payment of interest expenses | 710,529 | 669,094 |
Including: Dividends and profit paid to minority shareholders by subsidiaries | ||
Other cash paid relating to financing activities | 1,554,426 | 1,532,612 |
Subtotal of cash outflows from financing activities | 11,193,689 | 8,800,442 |
Net cash flows from financing activities | 1,091,693 | -3,204,874 |
IV. Effect of exchange rate changes on cash and cash equivalents | 20,751 | -5,162 |
V. Net increase in cash and cash equivalents | 1,280,363 | -1,060,994 |
Add: Balance of cash and cash equivalents as at the beginning of the period | 7,138,098 | 8,639,687 |
VI. Balance of cash and cash equivalents as at the end of the period | 8,418,461 | 7,578,693 |
Legal representative: Cai Jianjiang
Person in charge of accounting function: Mr. Xiao Feng
Person in charge of accounting department: Mr. Zhan Zhong (general manager of the finance department)
Cash Flow Statement of the Company
January to March 2016
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 | 17,638,277 | 17,475,983 |
Refund of tax and levy | ||
Other cash received relating to operating activities | 404,165 | 427,207 |
Subtotal of cash inflows of operating activities | 18,042,442 | 17,903,190 |
Cash paid for goods purchased and services received | 9,575,772 | 9,576,537 |
Cash paid to or on behalf of employees | 2,140,424 | 2,097,235 |
Tax and levies paid | 666,973 | 417,090 |
Other cash paid relating to operating activities | 1,599,806 | 1,761,599 |
Subtotal of cash outflows from operating activities | 13,982,975 | 13,852,461 |
Net cash flows from operating activities | 4,059,467 | 4,050,729 |
II. Cash flows from investment activities: | ||
Cash received from sales and redemption of investments | ||
Cash received from investment income | 975 | 559 |
Net cash proceeds from disposal of fixed assets, intangible assets and other long-term assets | 7,523 | 2,344 |
Net cash proceeds from disposal of subsidiaries and other business units | ||
Other cash received relating to operating activities | 13,263 | 14,740 |
Subtotal of cash inflows from investment activities | 21,761 | 17,643 |
Cash paid for purchase of fixed assets, intangible assets and other long-term assets | 5,896,293 | 2,105,561 |
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 | 5,896,293 | 2,105,561 |
Net cash flows from investment activities | -5,874,532 | -2,087,918 |
III. Cash flows from financing activities: | ||
Cash received from issue of debentures | 3,000,000 | 0 |
Cash received from capital injection | ||
Cash received from borrowings | 7,227,898 | 2,643,005 |
Other cash received relating to financing activities | ||
Subtotal of cash inflows from financing activities | 10,227,898 | 2,643,005 |
Cash paid for repayment of borrowings | 7,521,736 | 3,603,608 |
Cash paid for distribution of dividends, profits or payment of interest expenses | 488,412 | 536,131 |
Other cash paid relating to financing activities | 1,263,049 | 1,057,680 |
Subtotal of cash outflows from financing activities | 9,273,197 | 5,197,419 |
Net cash flows from financing activities | 954,701 | -2,554,414 |
IV. Effect of exchange rate changes on cash and cash equivalents | 5,510 | -7,774 |
V. Net increase in cash and cash equivalents | -854,854 | -599,377 |
Add: Balance of cash and cash equivalents as at the beginning of the period | 3,223,977 | 3,258,265 |
VI. Balance of cash and cash equivalents as at the end of the period | 2,369,123 | 2,658,888 |
Legal representative: Cai Jianjiang
Person in charge of accounting function: Mr. Xiao Feng
Person in charge of accounting department: Mr. Zhan Zhong (general manager of the finance department)
4.2 Auditor's Report
Applicable |X| Not applicable
By order of the Board
Air China Limited
Rao Xinyu Tam Shuit Mui
Joint Company Secretaries
Beijing, the PRC, 28 April 2016
As at the date of this announcement, the directors of the Company are Mr. Cai Jianjiang, Ms. Wang Yinxiang, Mr. Cao Jianxiong, Mr. Feng Gang, Mr. John Robert Slosar, Mr. Ian Sai Cheung Shiu, Mr. Song Zhiyong, Mr. Pan Xiaojiang*, Mr. Simon To Chi Keung*, Mr. Stanley Hui Hon-chung* and Mr. Li Dajin*.
* Independent non-executive Director of the Company