Last checked at 30 Oct 2015 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)
THIRD QUARTERLY REPORT 2015
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 29 October 2015 and passed the resolution approving the quarterly report of the Company for the third quarter of 2015 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 warrant that there are no false representations, misleading statements or material omissions in this quarterly report, and jointly and severally accept full responsibility for the truthfulness, accuracy and completeness of the contents of this quarterly report.
1.2 Attendance of the directors of the Company at the Board meeting
Name of absent director | Position of absent director | Reason(s) for absence | Name of proxy |
Feng Gang | Director | Business engagement | Cai Jianjiang |
John Robert Slosar | Director | Business engagement |
1.3 Cai Jianjiang (legal representative of the Company), Xiao Feng (person in charge of accounting function), and Zhan Zhong (person in charge of accounting department (accounting superintendent)) hereby warrant that the financial statements set out in this quarterly report are true, accurate and complete.
1.4 The financial statements set out in the third quarterly report of the Company are unaudited.
2. MAJOR FINANCIAL DATA OF THE COMPANY AND CHANGES IN SHAREHOLDERS
2.1 Major financial data
Unit: RMBʼ000
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 | ||
After adjustment | Before adjustment | the previous year (%) | ||
Total assets | 220,456,991 | 212,001,866 | 209,642,869 | 3.99 |
Net asset attributable to shareholders of the listed company | 61,454,636 | 54,635,489 | 54,340,012 | 12.48 |
For the period from the beginning of the year to the end of the reporting period | For the corresponding period of the previous year (January to September) | Increase/decrease as compared to the cor-responding period of the | ||
(January to September) | After adjustment | Before adjustment | previous year (%) | |
Net cash flows from operating activities | 27,865,106 | 14,345,940 | 14,729,780 | 94.24 |
For the period from the beginning of the year to the end of the reporting period | For the corresponding period of the previous year (January to September) | Increase/decrease as compared to the cor-responding period of the | ||
(January to September) | After adjustment | Before adjustment | previous year (%) | |
Revenue | 82,381,027 | 78,959,890 | 78,911,498 | 4.33 |
Net profit attributable to shareholders of the listed company | 6,280,498 | 3,170,512 | 3,157,021 | 98.09 |
Net profit attributable to shareholders of the listed company after deducting non-recurring profits and losses | 5,855,992 | 2,584,282 | 2,597,360 | 126.6 |
Weighted average return on netassets (%) | 10.82 | 5.71 | 5.69 | Increased by 5.11 ppts |
Basic earnings per share (RMB) | 0.51 | 0.26 | 0.26 | 98.09 |
Diluted earnings per share (RMB) | N/A | N/A | N/A | N/A |
Non-recurring profits and losses
Applicable | Not applicable |
Unit: RMBʼ000
Items | Amounts for the period （July -September） | For the period from the beginning of the year to the end of the reporting period (January to September) |
Gains/(losses) from disposal of non-current assets | 2,241 | -19,303 |
Government grants included in the profits and losses for the current period (except for those that are closely related to the Company's normal operating business and qualified under national policy to continually receive certain standard amount and quantities) | 55,844 | 595,035 |
Income from the difference between the fair value of the identifiable net assets attributable from the investees and investment cost of subsidiaries, associates and joint ventures acquired | 0 | 2,813 |
Current net profit/loss of subsidiaries resulting from merger of enterprises under common control from the beginning of the period to the date of merger | 19,095 | 76,666 |
Gain/(loss) 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) | 4,513 | 7,986 |
Reversal of provision for impairment of receivables which are individually tested for impairment | 0 | 3 |
Other non-operating income and expenses not covered above | -7,267 | 31,911 |
Effect of income tax | -17,162 | -171,197 |
Effect on non-controlling interests (after taxation) | -25,590 | -99,408 |
|
| |
Total | 31,674 | 424,506 |
|
|
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 | 270,162 | |||||
Particulars of the top 10 shareholders | ||||||
Name of shareholder (full name) | Shares held at the end of the | Share-holding | Shares held subject to selling re- | Shares pledged or frozen | Nature of | |
period | percentage | strictions | Status | Number | shareholder | |
(%) | ||||||
China National Aviation Holding Company | 5,438,757,879 | 41.57 | 192,796,331 | Frozen | 127,445,536 | State |
Cathay Pacific Airways Limited | 2,633,725,455 | 20.13 | Nil | Foreign legal person | ||
HKSCC NOMINEES LIMITED | 1,682,456,520 | 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 | 285,316,841 | 2.18 | 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 | ||
Jiang Hongye (蔣宏業) | 48,000,000 | 0.37 | Unknown | Unknown | ||
Huaxia Life Insurance Co., Ltd. - universal insurance product | 19,204,929 | 0.15 | Unknown | Unknown | ||
Taikang Life Insurance Ltd - Bonus - Personal Bonus - 019L - FH002 Shanghai | 17,982,365 | 0.14 | 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 | Class and number of shares | |
restrictions | Class | Number | |
China National Aviation Holding Company | 5,245,961,548 | RMB ordinary shares | 5,245,961,548 |
Cathay Pacific Airways Limited | 2,633,725,455 | Overseas listed foreign shares | 2,633,725,455 |
HKSCC NOMINEES LIMITED | 1,682,456,520 | Overseas listed foreign shares | 1,682,456,520 |
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 | 285,316,841 | RMB ordinary shares | 285,316,841 |
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 |
Jiang Hongye (蔣宏業) | 48,000,000 | RMB ordinary shares | 48,000,000 |
Huaxia Life Insurance Co., Ltd. - universal insurance product | 19,204,929 | RMB ordinary shares | 19,204,929 |
Taikang Life Insurance Ltd - Bonus - Personal Bonus - 019L - FH002 Shanghai | 17,982,365 | RMB ordinary shares | 17,982,365 |
Explanations 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. | ||
Notes:
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 1,682,456,520 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 | 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 |
Total profit of the Group for January to September of 2015 was RMB8,563 million, representing a year-on-year increase of 97.69%; and net profit attributable to the parent company was RMB6,280 million, representing a year-on-year increase of 98.09%. The increases in total profit of the Group and net profit attributable to the parent company were mainly due to the combined effects of the year-on-year increase in revenue as a result of the optimised operational arrangement and increased capacity deployment of the Group as well as the strengthening of refined management on major cost items, continued exploiting the potential in cost reduction and the year-on-year decrease in aviation fuel cost.
Unit: RMBʼ000
Items in consolidated balance sheet | As of 30 September 2015 | As of 31 December 2014 (Restated) | Amount of Change | Percentage | Reasons for Change |
Inventories | 1,816,696 | 1,100,179 | 716,517 | 65.13% | Mainly due to the impact of the acquisition of a subsidiary during the reporting period. |
Assets held for sale | 102,628 | 457,623 | -354,995 | -77.57% | Mainly due to the disposal of several aircraft held for sale during the reporting period. |
Other current assets | 1,911,736 | 4,805,593 | -2,893,857 | -60.22% | Mainly due to the decrease in deductible input VAT and borrowings and advances issued by a subsidiary of the Group as at the end of the reporting period. |
Short-term loans | 7,787,050 | 19,146,494 | -11,359,444 | -59.33% | Mainly due to the Group's initiative to adjust its debt structure, thus decreasing its working capital loans. |
Short-term bonds payable | 1,240,000 | 640,000 | 600,000 | 93.75% | Mainly due to the impact of a new issuance of short-term bonds by a subsidiary of the Group. |
Bills payable | 487,176 | 150,000 | 337,176 | 224.78% | Increase in settlement by bills payable during the reporting period. |
Receipts in advance | 326,990 | 141,037 | 185,953 | 131.85% | Mainly due to the impact of the acquisition of a subsidiary during the reporting period. |
Salaries and wages payable | 2,335,529 | 1,663,888 | 671,641 | 40.37% | Mainly due to the impact of the acquisition of a subsidiary during the reporting period. |
Taxes payable | 1,390,783 | 977,764 | 413,019 | 42.24% | Mainly due to the increase in enterprise income tax payable. |
Interests payable | 915,902 | 669,108 | 246,794 | 36.88% | Mainly due to the provision of debenture interest payable during the reporting period. |
Long-term employee compensations payable | 264,860 | 264,860 | 100.00% | Mainly due to the impact of the acquisition of a subsidiary during the reporting period. |
Items in consolidated income statement | For the period from the beginning of the year to the end of the reporting period | For the corresponding period of the previous year (restated) | Amount of Change | Percentage | Reasons for Change |
Finance expenses | 5,662,220 | 2,951,130 | 2,711,090 | 91.87% | Due to the increase in net foreign exchange losses recognised during the reporting period as a result of the appreciation of US$ against RMB. |
Impairment loss of assets | 16,795 | -104,056 | 120,851 | 116.14% | Mainly due to the reversal of the bad debt provision for other receivables in prior years by a subsidiary of the Group during the corresponding period of the previous year. |
Investment income | 1,164,353 | 659,440 | 504,913 | 76.57% | Mainly due to the increase in investment income from associated companies and joint ventures recognised during the reporting period as compared to the corresponding period of the previous year. |
Income tax expenses | 1,882,844 | 911,027 | 971,817 | 106.67% | Mainly due to the year-on-year increase in profit during the reporting period, resulting in an increase in enterprise income tax payable. |
Gains or losses attributable to non- controlling interests | 399,813 | 250,139 | 149,674 | 59.84% | Mainly due to the acquisition of a new non-wholly owned subsidiary and the increase in total profit of the other non-wholly owned subsidiaries of the Group for 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 | For the corresponding period of the previous year (restated) | Amount of Change | Percentage | Reasons for Change |
Other cash received relating to operating activities | 5,355,733 | 3,342,286 | 2,013,447 | 60.24% | Mainly due to the year-on-year increase of loans and advances recovered by a subsidiary of the Group. |
Cash received from investment income | 443,096 | 328,751 | 114,345 | 34.78% | Increase in dividends received from investees during the reporting period. |
Net cash proceeds from acquisition of a subsidiary | 145,380 | 145,380 | 100.00% | Impact of the acquisition of a subsidiary during the reporting period. | |
Other cash received relating to investing activities | 580,040 | 1,019,732 | -439,692 | -43.12% | Mainly due to the smaller change in the balance of secured deposits during the reporting period as compared to the corresponding period of the previous year. |
Net cash proceeds from disposal of fixed assets and intangible assets and other long-term assets | 200,619 | 1,571,985 | -1,371,366 | -87.24% | Decrease in aircraft disposals completed during the reporting period as compared to the corresponding period of the previous year. |
Other cash paid relating to investingactivities | 500,241 | 257,930 | 242,311 | 93.94% | Mainly due to the increase in investment products purchased by a subsidiary of the Group as compared to the corresponding period of the previous year. |
Cash received from issue of debentures | 600,000 | 600,000 | 100.00% | New issuance of short-term bonds by a subsidiary of the Group during the reporting period. | |
Cash received from borrowings | 12,531,354 | 30,051,598 | -17,520,244 | -58.30% | Mainly due to abundant cash flow from operating activities during the reporting period, resulting in the decrease in new loans 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 |
1. Continuing connected transactions between CNAF and CNAHC
On 29 April 2015, China National Aviation Finance Co., Ltd (hereinafter as "CNAF") and China National Aviation Holding Company (plenipotentiary to its subsidiaries and hereinafter collectively as "CNAHC") entered into the Financial Services Framework Agreement (hereinafter as the "Agreement"), pursuant to which CNAF shall provide financial services to CNAHC during the term of the Agreement. Please refer to the announcement published by the Company on the China Securities Journal, Shanghai Securities News, Securities Daily and the website of Shanghai Stock Exchange (www.sse.com.cn) on 30 April 2015. The Agreement has come into effect as the related issues of the shareholding restructuring of CNAF has eventually been approved by relevant approval authorities and conditions for the Agreement to come into effect have been fulfilled. Upon completion of this acquisition, CNAF has been included in the scope of consolidation of the consolidated financial statements and belongs to business combination under common control.
2. Non-public offering of A shares
At the 21st meeting of the fourth session of the Board of Directors of the Company held on 27 July 2015, the Board approved the Company's proposed non-public offering of not more than 994,200,497 A shares (inclusive) to not more than 10 (inclusive) specified targets (including China National Aviation Holding Company, being the controlling shareholder of the Company), with total proceeds not exceeding RMB12 billion (inclusive). Please refer to the announcement published by the Company on the website of Shanghai Stock Exchange (www.sse.com.cn) and the China Securities Journal, Shanghai Securities News and Securities Daily on 29 July 2015. As the A share market has witnessed considerable changes in recent months, the Company is still considering the specific working arrangements regarding the implementation of the relevant transactions.
3.3 Performance of undertakings given by the Company and the shareholders holding more than 5% of the shares of the Company
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 undertak-ings were made on 3 August 2015 and shall be fulfilled on or before 2 August 2016 | Yes | Yes | ||||
Note:
As CNAF has become a subsidiary of the Company after its shareholding restructuring, transactions between the Company and CNAF no longer constitute connected transactions. As a result, the undertakings by CNAHC and the Company respectively relating to refinancing and resolving the problems arising from the connected transactions between the Company and CNAF, as contained in the previous report of the Company, were released on 1 September 2015. The undertaking is not subject to disclosure starting from this report.
Among the undertakings detailed in the Company's previous report, the undertaking by CNAHC resulting from a series of increases in the shareholding of the Company since 20 December 2013 has expired on 19 June 2015. The undertaking is not subject to disclosure starting from this report.
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 | Not applicable |
Company name | Air China Limited | |
Legal representative | Cai Jianjiang | |
Date | 29 October 2015 |
4. APPENDIX
4.1 Financial Statements
Consolidated Balance Sheet
30 September 2015
Prepared by Air China Limited
Unit: RMBʼ000 (Unaudited)
Items | Balance at the end of period | Balance at the beginning of the year |
CURRENT ASSETS: | ||
Cash and bank balances | 10,260,916 | 9,344,550 |
Provisions on payables | ||
Contributions made | ||
Financial assets at fair value through profit or loss | 24,136 | 12,534 |
Derivative financial assets | ||
Bills receivable | 496 | 155 |
Accounts receivable | 3,285,792 | 2,984,209 |
Prepayments | 1,002,021 | 843,801 |
Premium receivable | ||
Receivables on reinsurance | ||
Provisions for reinsurance contracts | ||
Interest receivable | ||
Dividend receivable | ||
Other receivables | 2,622,065 | 2,801,013 |
Purchase of financial assets resold | ||
Inventories | 1,816,696 | 1,100,179 |
Assets held for sale | 102,628 | 457,623 |
Non-current assets due within a year | ||
Other current assets | 1,911,736 | 4,805,593 |
Total current assets | 21,026,486 | 22,349,657 |
NON-CURRENT ASSETS: | ||
Loans and advances | ||
Available-for-sale financial assets | 697,280 | 715,711 |
Held-to-maturity investments | 80,000 | 30,000 |
Long-term receivables | 570,107 | 535,184 |
Long-term equity investments | 14,392,134 | 13,183,912 |
Investment properties | 357,460 | 347,992 |
Fixed assets | 149,526,906 | 139,619,667 |
Construction in progress | 24,615,930 | 26,448,536 |
Construction materials | ||
Disposal of fixed assets | ||
Biological assets for production | ||
Oil and gas assets | ||
Intangible assets | 4,109,304 | 3,620,472 |
Development expenses | ||
Goodwill | 1,102,185 | 1,102,185 |
Long-term deferred expenses | 507,620 | 558,726 |
Deferred tax assets | 3,471,579 | 3,489,824 |
Other non-current assets | ||
Total non-current assets | 199,430,505 | 189,652,209 |
Total assets | 220,456,991 | 212,001,866 |
CURRENT LIABILITIES: | ||
Short-term loans | 7,787,050 | 19,146,494 |
Borrowings from central bank | ||
Deposits from clients and placements from other banks | ||
Contributions received | ||
Short-term bonds payable | 1,240,000 | 640,000 |
Financial liabilities at fair value through profit or loss | 2,873 | 7,712 |
Derivative financial liabilities | ||
Bills payable | 487,176 | 150,000 |
Accounts payable | 12,646,253 | 11,757,797 |
Domestic air traffic liabilities | 2,218,898 | 2,103,215 |
International air traffic liabilities | 3,419,790 | 2,727,591 |
Receipts in advance | 326,990 | 141,037 |
Sale of financial assets repurchased | ||
Fees and commissions payable | ||
Salaries and wages payable | 2,335,529 | 1,663,888 |
Taxes payable | 1,390,783 | 977,764 |
Interest payable | 915,902 | 669,108 |
Dividend payable | 1,449 | |
Other payables | 9,046,949 | 8,343,510 |
Amounts payable on reinsurance | ||
Reserves on insurance contracts | ||
Brokerage payable | ||
Underwriting fees payable | ||
Liabilities held for sale | ||
Non-current liabilities due within a year | 12,867,124 | 13,725,417 |
Other current liabilities | ||
Total current liabilities | 54,685,317 | 62,054,982 |
NON-CURRENT LIABILITIES: | ||
Long-term loans | 31,523,051 | 31,829,076 |
Debentures payable | 17,195,491 | 17,194,120 |
Including: Preference shares | ||
Perpetual bonds | ||
Long-term payables | 3,486,566 | 3,409,031 |
Obligations under finance leases | 38,081,932 | 31,240,298 |
Long-term employee compensations payable | 264,860 | |
Specific payables | ||
Estimated liabilities | 350,803 | 360,481 |
Deferred income | 3,904,099 | 3,336,106 |
Deferred income tax liabilities | 2,782,800 | 2,337,958 |
Other non-current liabilities | ||
Total non-current liabilities | 97,589,602 | 89,707,070 |
Total liabilities | 152,274,919 | 151,762,052 |
OWNERʼS EQUITY: | ||
Issued capital | 13,084,751 | 13,084,751 |
Other equity instruments | ||
Including: Preference shares | ||
Perpetual bonds | ||
Capital reserve | 16,509,532 | 16,767,627 |
Less: Treasury shares | ||
Other comprehensive income | -3,581,638 | -5,058,975 |
Specific reserves | ||
Surplus reserves | 6,089,023 | 5,802,819 |
General risk provisions | 38,851 | 38,364 |
Retained earnings | 29,314,117 | 24,000,903 |
Total owner's equity attributable to shareholders of the Company | 61,454,636 | 54,635,489 |
Non-controlling interests | 6,727,436 | 5,604,325 |
Total owner's equity | 68,182,072 | 60,239,814 |
Total liabilities and owner's equity | 220,456,991 | 212,001,866 |
Legal representative of the Company: Cai Jianjiang
Person in charge of accounting function: Xiao Feng
Person in charge of accounting department: Zhan Zhong
Balance Sheet of The Parent Company
30 September 2015
Prepared by Air China Limited
Unit: RMBʼ000 (Unaudited)
Items | Balance at the end of period | Balance at the beginning of the year |
CURRENT ASSETS: | ||
Cash and bank balances | 3,632,958 | 3,258,265 |
Financial assets at fair value through profit or loss | ||
Derivative financial assets | ||
Bills receivable | ||
Accounts receivable | 2,680,700 | 2,033,210 |
Prepayments | 438,615 | 559,578 |
Interest receivable | ||
Dividend receivable | ||
Other receivables | 1,991,315 | 2,592,836 |
Inventories | 317,336 | 633,178 |
Assets held for sale | 102,628 | 457,623 |
Non-current assets due within a year | ||
Other current assets | 1,528,507 | 1,895,153 |
Total current assets | 10,692,059 | 11,429,843 |
NON-CURRENT ASSETS: | ||
Available-for-sale financial assets | 22,784 | 22,784 |
Entrusted loans | 1,020,000 | 1,020,000 |
Held-to-maturity investments | ||
Long-term receivables | 374,005 | 349,500 |
Long-term equity investments | 26,386,908 | 24,488,744 |
Investment properties | ||
Fixed assets | 98,473,944 | 96,751,867 |
Construction in progress | 17,984,132 | 18,466,382 |
Construction materials | ||
Disposal of fixed assets | ||
Biological assets for production | ||
Oil and gas assets | ||
Intangible assets | 2,490,727 | 2,125,388 |
Development expenses | ||
Goodwill | ||
Long-term deferred expenses | 330,639 | 362,315 |
Deferred tax assets | 1,883,932 | 2,009,455 |
Other non-current assets | ||
Total non-current assets | 148,967,071 | 145,596,435 |
Total assets | 159,659,130 | 157,026,278 |
CURRENT LIABILITIES: | ||
Short-term loans | 5,068,636 | 13,059,072 |
Financial liabilities at fair value through profit or loss | ||
Derivative financial liabilities | ||
Bills payable | ||
Accounts payable | 9,856,497 | 8,358,733 |
Domestic air traffic liabilities | 1,603,581 | 1,472,580 |
International air traffic liabilities | 3,114,068 | 2,445,144 |
Receipts in advance | 93,028 | 99,081 |
Salaries and wages payable | 936,574 | 522,110 |
Taxes payable | 1,092,535 | 788,834 |
Interest payable | 708,675 | 574,389 |
Dividend payable | ||
Other payables | 6,183,727 | 3,875,786 |
Held-for-sale liabilities | ||
Non-current liabilities due within a year | 7,971,741 | 9,915,116 |
Other current liabilities | ||
Total current liabilities | 36,629,062 | 41,110,845 |
NON-CURRENT LIABILITIES: | ||
Long-term loans | 17,491,724 | 17,612,658 |
Debentures payable | 16,000,000 | 16,000,000 |
Including: Preference shares | ||
Perpetual bonds | ||
Long-term payables | 1,678,255 | 1,757,510 |
Obligations under finance leases | 25,978,134 | 23,895,151 |
Long-term employee compensations payable | ||
Specific payables | ||
Estimated liabilities | 14,719 | 18,751 |
Deferred income | 3,284,664 | 2,798,912 |
Deferred income tax liabilities | 87,838 | 130,177 |
Other non-current liabilities | ||
Total non-current liabilities | 64,535,334 | 62,213,159 |
Total liabilities | 101,164,396 | 103,324,004 |
OWNER'S EQUITY: | ||
Issued capital | 13,084,751 | 13,084,751 |
Other equity instruments | ||
Including: Preference shares | ||
Perpetual bonds | ||
Capital reserve | 20,857,370 | 20,823,233 |
Less: Treasury shares | ||
Other comprehensive income | 177,531 | 166,530 |
Specific reserves | ||
Surplus reserves | 6,051,918 | 5,766,587 |
Retained earnings | 18,323,164 | 13,861,173 |
Total owner's equity | 58,494,734 | 53,702,274 |
Total liabilities and owner's equity | 159,659,130 | 157,026,278 |
Legal representative of the Company: Cai Jianjiang
Person in charge of accounting function: Xiao Feng
Person in charge of accounting department: Zhan Zhong
Consolidated Income Statement
January to September 2015
Prepared by Air China Limited
Unit: RMBʼ000 (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 last reporting period (January to September) |
I. Revenue from operations | 31,229,751 | 29,811,879 | 82,381,027 | 78,959,890 |
Including: Operation income | 31,229,751 | 29,811,879 | 82,381,027 | 78,959,890 |
Interest income | ||||
Premium earned | ||||
Fees and commission income | ||||
II. Total operating costs | 28,754,512 | 26,489,642 | 75,599,700 | 76,166,732 |
Including: Operating costs | 21,839,446 | 23,015,107 | 61,970,696 | 65,339,849 |
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 | 77,005 | 59,359 | 194,168 | 148,754 |
Selling expenses | 1,607,310 | 1,900,250 | 4,932,502 | 5,497,335 |
Administrative expenses | 1,102,786 | 812,150 | 2,823,319 | 2,333,720 |
Finance expenses | 4,123,704 | 814,249 | 5,662,220 | 2,951,130 |
Impairment loss of assets | 4,261 | -111,473 | 16,795 | -104,056 |
Add: Gains from changes in fair value (loss is represented by "-" sign) | 69 | 4,758 | 6,682 | 4,335 |
Investment income (loss is represented by "-" sign) | 504,369 | 408,594 | 1,164,353 | 659,440 |
Including:Gains arising from investments in associated companies and joint ventures | 495,013 | 399,360 | 1,133,865 | 635,979 |
Exchange gains (loss is represented by "-" sign) | ||||
III. Profit from operations (loss is represented by "-" sign) | 2,979,677 | 3,735,589 | 7,952,362 | 3,456,933 |
Add: Non-operating income | 121,431 | 86,228 | 746,055 | 963,885 |
Including:Gains arising from disposal of non- current assets | 28,490 | 2,234 | 48,126 | 24,897 |
Less: Non-operating expenses | 70,646 | 38,926 | 135,262 | 89,140 |
Including:Loss arising from disposal of non- current assets | 26,249 | 32,661 | 67,429 | 70,630 |
IV. Total profit (total loss is represented by "-" sign) | 3,030,462 | 3,782,891 | 8,563,155 | 4,331,678 |
Less: Income tax expenses | 669,073 | 809,475 | 1,882,844 | 911,027 |
V. Net profit (net loss is represented by "-" sign) | 2,361,389 | 2,973,416 | 6,680,311 | 3,420,651 |
Net profits attributable to shareholders of the listed Company | 2,331,227 | 2,687,167 | 6,280,498 | 3,170,512 |
Gains or losses attributable to non-controlling interests | 30,162 | 286,249 | 399,813 | 250,139 |
VI. Other comprehensive in-come after taxation | 788,152 | 78,553 | 1,498,998 | -148,652 |
Other comprehensive income after taxation attributable to shareholders of the listed Company | 786,429 | 38,464 | 1,477,316 | -195,996 |
(I) Other comprehensive income that cannot be subsequently reclassified to profit or loss | -158 | |||
1. Change arising from re- measurement of net liabilities or net assets in defined benefit plans | -158 | |||
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 | 786,429 | 38,464 | 1,477,474 | -195,996 |
1. Share of other comprehensive income of the investees accounted for using the equity method that will be subsequently reclassified to profit or loss | -12,075 | 69,057 | 664,204 | -362,156 |
2. Gains or losses arising from changes in fair value of available-for-sale financial assets | -6,187 | 218 | 15,835 | 2,898 |
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. Foreign exchange translation reserve | 804,691 | -30,811 | 797,435 | 163,262 |
6. Others | ||||
Other comprehensive income after taxation attributable to non- controlling interests | 1,723 | 40,089 | 21,682 | 47,344 |
VII. Total comprehensive income | 3,149,541 | 3,051,969 | 8,179,309 | 3,271,999 |
Total comprehensive income attributable to shareholders of the listed Company | 3,117,656 | 2,725,631 | 7,757,814 | 2,974,516 |
Total comprehensive income attributable to non-controlling interests | 31,885 | 326,338 | 421,495 | 297,483 |
VIII. Earnings per share: | ||||
(I) Basic (RMB) | 0.19 | 0.22 | 0.51 | 0.26 |
(II) Diluted (RMB) | N/A | N/A | N/A | N/A |
For the business combination under common control effected in the current period, the net profit realised by the combined party before the combination was RMB57,676,792, and the net profit realised by the combined party in the previous period was RMB52,093,200.
Legal representative of the Company: Cai Jianjiang
Person in charge of accounting function: Xiao Feng
Person in charge of accounting department: Zhan Zhong
Income Statement of the Parent Company
January to September 2015
Prepared by Air China Limited
Unit: RMBʼ000 (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 last reporting period (January to September) |
I. Revenue from operations | 22,112,059 | 21,206,303 | 58,131,530 | 56,040,674 |
Less: Operating costs | 15,221,410 | 16,052,793 | 43,192,772 | 45,711,385 |
Business taxes and other levies | 30,533 | 24,319 | 95,123 | 68,637 |
Selling expenses | 1,235,878 | 1,493,473 | 3,745,847 | 4,292,309 |
Administrative expenses | 393,017 | 442,985 | 1,251,821 | 1,253,562 |
Finance expenses | 2,868,235 | 599,041 | 4,074,951 | 2,212,885 |
Impairment loss of assets | 3,615 | 5,482 | ||
Add: Gains from changes in fair value (loss is represented by "-" sign) | ||||
Investment income (loss is represented by "-" sign) | 221,903 | 184,488 | 644,552 | 375,235 |
Including:Gains arising from investments in associated companies and joint ventures | 220,373 | 182,350 | 551,106 | 250,687 |
II. Profit from operations (loss is represented by "-" sign) | 2,584,889 | 2,778,180 | 6,411,953 | 2,871,649 |
Add: Non-operating income | 28,948 | 138,085 | 586,919 | 629,585 |
Including:Gains arising from disposal of non- current assets | 5,897 | 107,040 | 131,088 | 129,400 |
Less: Non-operating expenses | 27,070 | 33,635 | 77,149 | 80,204 |
Including:Loss arising from disposal of non- current assets | 23,650 | 30,690 | 63,929 | 68,069 |
III. Total profit (total loss is represented by "-" sign) | 2,586,767 | 2,882,630 | 6,921,723 | 3,421,030 |
Less: Income tax expenses | 556,502 | 656,903 | 1,490,985 | 732,341 |
IV. Net profit (net loss is represented by "-" sign) | 2,030,265 | 2,225,727 | 5,430,738 | 2,688,689 |
V. Other comprehensive income after taxation | 24,806 | 11,001 | 25,903 | |
(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 | 24,806 | 11,001 | 25,903 | |
1. Share of other comprehensive income of the investees accounted for using the equity method that will be subsequently reclassified to profit or loss | 24,806 | 11,001 | 25,903 | |
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. Foreign exchange translation reserve | ||||
6. Others | ||||
VI. Total comprehensive income | 2,030,265 | 2,250,533 | 5,441,739 | 2,714,592 |
VII. Earnings per share: | ||||
(I) Basic (RMB) | ||||
(II) Diluted (RMB) |
Legal representative of the Company: Cai Jianjiang
Person in charge of accounting function: Xiao Feng
Person in charge of accounting department: Zhan Zhong
Consolidated Cash Flow Statement
January to September 2015
Prepared by Air China Limited
Unit: RMBʼ000 (Unaudited)
Items | 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 last reporting period (January to September) |
I. Cash flows from operating activities: | ||
Cash received from sales of goods and provision of services | 87,479,093 | 82,863,244 |
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 held-for-trading financial assets | ||
Cash received from interests, fees and commission | ||
Net increase in contributions received | ||
Net increase in cash from repurchase operations | ||
Refund of tax and levy | 10,193 | 16,795 |
Other cash received relating to operating activities | 5,355,733 | 3,342,286 |
Subtotal of cash inflows of operating activities | 92,845,019 | 86,222,325 |
Cash paid for goods purchases and services received | 42,875,119 | 49,285,841 |
Net increase in loans and advances to clients | ||
Net increase in deposits in central bank and to 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 | 11,729,923 | 11,587,566 |
Tax and levies paid | 3,251,520 | 2,953,187 |
Other cash paid relating to operating activities | 7,123,351 | 8,049,791 |
Subtotal of cash outflows from operating activities | 64,979,913 | 71,876,385 |
Net cash flows from operating activities | 27,865,106 | 14,345,940 |
II. Cash flows from investment activities: | ||
Cash received from sales and redemption of investments | ||
Cash received from investment income | 443,096 | 328,751 |
Net cash received for acquisition of subsidiaries | 145,380 | |
Net cash proceeds from disposal of fixed assets, intangible assets and other long-term assets | 200,619 | 1,571,985 |
Other cash received relating to investment activities | 434,660 | 1,019,732 |
Subtotal of cash inflows from investment activities | 1,223,755 | 2,920,468 |
Cash paid for purchase of fixed assets, intangible assets and other long-term assets | 7,312,864 | 10,262,885 |
Cash paid for investments | 59,085 | |
Net cash payments for acquisition of subsidiaries and other business units | ||
Other cash paid relating to investment activities | 500,241 | 257,930 |
Subtotal of cash outflows from investment activities | 7,872,190 | 10,520,815 |
Net cash flows from investment activities | -6,648,435 | -7,600,347 |
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 | 12,531,354 | 30,051,598 |
Cash received from issue of debentures | 600,000 | |
Other cash received relating to financing activities | ||
Subtotal of cash inflows from financing activities | 13,131,354 | 30,051,598 |
Cash paid for repayment of borrowings | 23,669,446 | 30,526,773 |
Cash paid for redemption of debentures | 3,000,000 | 3,700,000 |
Cash paid for distribution of dividends, profits or payment of interest expenses | 2,910,743 | 2,923,370 |
Including: Dividends and profit paid to minority shareholders by subsidiaries | 87,110 | 138,465 |
Other cash paid relating to financing activities | 4,099,023 | 3,482,801 |
Subtotal of cash outflows from financing activities | 33,679,212 | 40,632,944 |
Net cash flows from financing activities | -20,547,858 | -10,581,346 |
IV. Effect of exchange rate changes on cash and cash equivalents | 46,443 | 16,053 |
V. Net increase in cash and cash equivalents | 715,256 | -3,819,700 |
Add:Balance of cash and cash equivalents as at the beginning of the period | 9,269,979 | 13,548,363 |
VI. Balance of cash and cash equivalents as at the end of the period | 9,985,235 | 9,728,663 |
Legal representative of the Company: Cai Jianjiang
Person in charge of accounting function: Xiao Feng
Person in charge of accounting department: Zhan Zhong
Cash Flow Statement of the Parent Company
January to September 2015
Prepared by Air China Limited
Unit: RMBʼ000 (Unaudited)
Items | 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 last reporting period (January to September) |
I. Cash flows from operating activities: | ||
Cash received from sales of goods and provision of services | 60,616,657 | 58,058,101 |
Refund of tax and levy | 4,807 | 4,965 |
Other cash received relating to operating activities | 2,047,750 | 1,819,260 |
Subtotal of cash inflows from operating activities | 62,669,214 | 59,882,326 |
Cash paid for goods purchased and services received | 30,722,967 | 35,997,536 |
Cash paid to or on behalf of employees | 6,175,991 | 6,476,507 |
Tax and levies paid | 2,200,143 | 2,023,452 |
Other cash paid relating to operating activities | 4,205,863 | 5,204,011 |
Subtotal of cash outflows from operating activities | 43,304,964 | 49,701,506 |
Net cash flows from operating activities | 19,364,250 | 10,180,820 |
II. Cash flows from investment activities: | ||
Cash received from sales and redemption of investments | ||
Cash received from investment income | 266,782 | 227,835 |
Net cash proceeds from disposal of fixed assets, intangible assets and other long-term assets | 408,392 | 924,903 |
Net cash proceeds from disposal of subsidiaries and other business units | ||
Other cash received relating to investment activities | 54,485 | 788,479 |
Subtotal of cash inflows from investment activities | 729,659 | 1,941,217 |
Cash paid for purchase of fixed assets, intangible assets and other long-term assets | 4,960,376 | 4,928,332 |
Cash paid for investments | 59,085 | |
Net cash payments for acquisition of subsidiaries and other business units | 734,930 | 431,743 |
Other cash paid relating to investment activities | 1,023,819 | |
Subtotal of cash outflows from investment activities | 5,754,391 | 6,383,894 |
Net cash flows from investment activities | -5,024,732 | -4,442,677 |
III. Cash flows from financing activities: | ||
Cash received from capital injection | ||
Cash received from borrowings | 9,679,060 | 20,076,997 |
Other cash received relating to financing activities | ||
Subtotal of cash inflows from financing activities | 9,679,060 | 20,076,997 |
Cash paid for repayment of borrowings | 15,410,730 | 20,165,199 |
Cash paid for redemption of debentures | 3,000,000 | 3,000,000 |
Cash paid for distribution of dividends, profits or payment of interest expenses | 2,181,195 | 2,115,306 |
Other cash paid relating to financing activities | 3,052,617 | 2,716,087 |
Subtotal of cash outflows from financing activities | 23,644,542 | 27,996,592 |
Net cash flows from financing activities | -13,965,482 | -7,919,595 |
IV. Effect of exchange rate changes on cash and cash equivalents | 657 | -3,940 |
V. Net increase in cash and cash equivalents | 374,693 | -2,185,392 |
Add:Balance of cash and cash equivalents as at the beginning of the period | 3,258,265 | 5,924,189 |
VI. Balance of cash and cash equivalents as at the end of the period | 3,632,958 | 3,738,797 |
Legal representative of the Company: Cai Jianjiang
Person in charge of accounting function: Xiao Feng
Person in charge of accounting department: Zhan Zhong
4.2 The Audit Report
Applicable | X | Not applicable |
By order of the Board
Air China Limited
Rao Xinyu Tam Shuit Mui
Joint Company Secretaries
Beijing, the PRC, 29 October 2015
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. Fan Cheng, Mr. Fu Yang*, Mr. Pan Xiaojiang*, Mr. Simon To Chi Keung* and Mr. Stanley Hui Hon-chung*.
* Independent non-executive Director of the Company