Last checked at 30 Oct 2017 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 2017
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 27 October 2017 and passed the resolution approving the third quarterly report 2017 of the Company for the nine months ended 30 September 2017 prepared in accordance with the PRC Accounting Standards.
1. IMPORTANT NOTICE
1.1 The Board and the supervisory committee of the Company together with the directors, supervisors and the senior management of the Company guarantee that the contents of the quarterly report are true, accurate and complete and do not contain any false representation, misleading statement or material omission, and shall jointly and severally accept legal liability.
1.2 All directors of the Company attended the board meeting to consider the quarterly report.
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 Financial Officer), and Mr. Zhan Zhong (person in charge of accounting department (accounting superintendent) and the general manager of finance department) hereby guarantee that the financial statements set out in this quarterly report are true, accurate and complete.
1.4 The third quarterly report of the Company is unaudited.
2. BASIC INFORMATION OF THE COMPANY
2.1 Major financial data
Unit: RMB'000
At the end of the reporting period | At the end of the previous year | Increase/decrease at the end of the reporting period as compared to the end of the previous year | |
(%) | |||
Total assets | 239,073,681 | 224,128,192 | 6.67 |
Net asset attributable to shareholders of the listed company | 85,618,153 | 68,876,496 | 24.31 |
For the period from the beginning of the year to the end of the reporting period (January to September) | For the corresponding period of the previous year (January to September) | Increase/decrease as compared to the corresponding period of the previous year | |
(%) | |||
Net cash flows from operating activities | 18,860,654 | 24,008,238 | (21.44) |
For the period from the beginning of the year to the end of the reporting period (January to September) | For the corresponding period of the previous year (January to September) | Increase/decrease as compared to the corresponding period of the previous year | |
(%) | |||
Revenue | 92,995,787 | 85,447,650 | 8.83 |
Net profit attributable to shareholders of the listed company | 8,278,508 | 7,226,708 | 14.55 |
Net profit attributable to shareholders of the listed company after deducting non-recurring profits and losses | 8,150,110 | 6,691,893 | 21.79 |
Weighted average return on net assets (%) | 10.34 | 11.39 | Decreased by 1.05 ppts |
Basic earnings per share(RMB per share) | 0.62 | 0.59 | 5.08 |
Diluted earnings per share(RMB per share) | N/A | N/A | N/A |
Non-recurring profits and losses
Applicable
Unit: RMB'000
Items | Amounts for the period (July to September) | Amounts for the period from the beginning of the year to the end of the reporting period (January to September) | ||||
Gains or losses on disposal of non-current assets | 47,464 | 45,485 | ||||
Government subsidies recorded in the income statement for the current period (exclusive of government subsidies which are closely related to the normal operating business of the Company and consistently entitled pursuant to prescribed standard quota or amount under the government policy) | 40,604 | 129,575 | ||||
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) | 338 | 370 | ||||
Reversal of provision for impairment of receivables which are individually tested for impairment | - | 3,572 | ||||
Other non-operating income and expenses not covered above | 6,506 | 40,044 | ||||
Effect of minority shareholders' interests(after taxation) | (8,337) | (31,342) | ||||
Effect of income tax | (25,481) | (59,306) | ||||
|
| |||||
Total | 61,094 | 128,398 | ||||
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|
2.2 Total number of shareholders, the top 10 shareholders and the top 10 holders of tradable shares (or shares not subject to selling restrictions) as at the end of the reporting period
Unit: share
Total number of shareholders 179,431
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 Holding Company | 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 | / | Foreign legal person |
HKSCC NOMINEES LIMITED | 1,684,098,519 | 11.60 | 0 | Nil | / | 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 | 469,145,502 | 3.23 | 385,109,114 | Nil | / | State-owned legal person |
China Securities Finance Corporation Limited | 384,806,469 | 2.65 | 0 | Nil | / | State-owned legal person |
Zhongyuan Equity Investment Management Co., Ltd. | 262,569,509 | 1.81 | 256,739,409 | Unknown | 262,569,405 | State-owned legal person |
China Structural Reform FundCo., Ltd. | 231,065,468 | 1.59 | 231,065,468 | Nil | / | State-owned legal person |
National Social Security Fund 118 | 71,034,895 | 0.49 | 0 | Nil | / | Unknown |
China Merchants SecuritiesCo., Ltd. | 34,419,032 | 0.24 | 0 | Nil | / | State-owned legal person |
Particulars of the top 10 shareholders not subject to selling restrictions | |||
Name of shareholder | Number of tradable shares held not subject to selling restrictions | Class and number of shares | |
Class | Number | ||
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 listedforeign shares | 2,633,725,455 |
HKSCC NOMINEES LIMITED | 1,684,098,519 | Overseas listedforeign shares | 1,684,098,519 |
China National Aviation Corporation(Group) Limited | 1,556,334,920 | RMB ordinary shares | 1,332,482,920 |
Overseas listedforeign shares | 223,852,000 | ||
China Securities Finance Corporation Limited | 384,806,469 | RMB ordinary shares | 384,806,469 |
China National Aviation Fuel Group Corporation | 84,036,388 | RMB ordinary shares | 84,036,388 |
National Social Security Fund 118 | 71,034,895 | RMB ordinary shares | 71,034,895 |
China Merchants Securities Co., Ltd. | 34,419,032 | RMB ordinary shares | 34,419,032 |
Sinotrans Air Transportation DevelopmentCo., Ltd. | 23,120,000 | RMB ordinary shares | 23,120,000 |
Jiang Hongye | 23,000,000 | RMB ordinary shares | 23,000,000 |
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 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 1,684,098,519 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 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
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
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 |
Cash and bank | 12,520,406 | 7,322,356 | 5,198,050 | 70.99 | Mainly due to the sale back of medium-term notes planned by the Group with its own funds. |
Prepayments | 3,151,458 | 1,136,826 | 2,014,632 | 177.22 | Mainly due to the increase in prepayments for aviation oil during the reporting period. |
Held-for-sale assets | 1,451 | 918,587 | (917,136) | (99.84) | The impact of disposal of certain aircraft held for sale during the reporting period. |
Other current assets | 5,186,800 | 3,053,370 | 2,133,430 | 69.87 | Mainly due to the increase in outstanding VAT credit and other financial assets held by China National Aviation Finance Co., Ltd., a subsidiary of the Company, during the reporting period. |
Short-term bonds payable | 599,366 | 5,147,083 | (4,547,717) | (88.36) | Repayment of short-term bonds due during the reporting period. |
Taxes payable | 2,425,669 | 1,361,742 | 1,063,927 | 78.13 | Mainly due to the increase in enterprise income taxes payable by the Group. |
Long-term loans | 8,755,600 | 12,835,222 | (4,079,622) | (31.78) | The impact of the amount of new loans raised being less than the amount of loans repaid during the reporting period. |
Capital reserve | 26,270,841 | 16,509,531 | 9,761,310 | 59.13 | The non-public A share issue during the reporting period. |
Other comprehensive income | (3,236,355) | (2,062,598) | (1,173,757) | (56.91) | The decrease in exchange difference on translation of financial statements in foreign currency 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 (January to September) | For the corresponding period of the previous year (January to September) | Amount of Change | Percentage (%) | Reasons for Change |
Finance expenses | 66,338 | 4,636,962 | (4,570,624) | (98.57) | Mainly due to the increase in the net exchange gain during the reporting period as compared to the corresponding period of the previous year. |
Investment income | (252,959) | 518,792 | (771,751) | (148.76) | Mainly due to the decrease in investment income from joint ventures and associates recognized during the reporting period as compared to the corresponding period of the previous year. |
Items in consolidated cash flow statement | For the period from the beginning of the year to the end of the reporting period (January to September) | For the corresponding period of the previous year (January to September) | Amount of Change | Percentage (%) | Reasons for Change |
Other cash paid relating to operating activities | 7,809,511 | 5,832,000 | 1,977,511 | 33.91 | Mainly due to the increase in contributions made and the net amounts of financial assets held under resale agreements 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. |
Net cash proceeds from disposal of fixed assets and intangible assets | 2,536,996 | 530,778 | 2,006,218 | 377.98 | Mainly due to the increase in cash inflows from disposal of aircraft during the reporting period as compared to the corresponding period of the previous year. |
Cash paid for purchase of fixed assets and other long-term assets | 10,143,733 | 21,208,750 | (11,065,017) | (52.17) | Mainly due to the decrease in prepayments and balance payments for the purchase of aircraft during the reporting period. |
Items in consolidated cash flow statement | For the period from the beginning of the year to the end of the reporting period (January to September) | For the corresponding period of the previous year (January to September) | Amount of Change | Percentage (%) | Reasons for Change |
Cash received from issue of debentures | 600,000 | 15,853,964 | (15,253,964) | (96.22) | Due to the decrease in bonds issued during the reporting period as compared to the corresponding period of the previous year. |
Cash received from borrowings | 21,516,462 | 13,099,369 | 8,417,093 | 64.26 | Due to the increase in new borrowings 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 raising capital by non-public issue of shares during the reporting period. |
Cash paid for repayment of borrowings | 25,994,065 | 16,634,786 | 9,359,279 | 56.26 | Due to the increase in repayment of borrowings 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
Not applicable
3.3 Undertakings that were failed to fulfill as scheduled during the reporting period
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
Not applicable
Company name | Air China Limited | |
Legal representative | Mr. Cai Jianjiang | |
Date | 27 October 2017 |
4. APPENDIX
4.1 Financial Statements
Consolidated Balance Sheet
30 September 2017
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 | 12,520,406 | 7,322,356 |
Provisions on payables | ||
Contributions made | ||
Financial assets at fair value through profit or loss | 40,351 | 222 |
Derivative financial assets | ||
Bills receivable | 507 | 837 |
Accounts receivable | 4,105,726 | 3,286,091 |
Prepayments | 3,151,458 | 1,136,826 |
Premium receivable | ||
Receivables on reinsurance | ||
Provisions for reinsurance contracts | ||
Interest receivable | ||
Dividend receivable | ||
Other receivables | 1,841,173 | 1,923,459 |
Purchase of financial assets resold | ||
Inventories | 2,137,871 | 1,680,633 |
Held-for-sale assets | 1,451 | 918,587 |
Non-current assets due within a year | 10,000 | - |
Other current assets | 5,186,800 | 3,053,370 |
Total current assets | 28,995,743 | 19,322,381 |
Items | Balance at the end of the period | Balance at the beginning of the year |
NON-CURRENT ASSETS: | ||
Loans and advances | ||
Available-for-sale financial assets | 1,291,315 | 1,152,704 |
Held-to-maturity investments | - | 10,000 |
Long-term receivables | 869,981 | 898,845 |
Long-term equity investments | 13,794,007 | 15,168,760 |
Investment properties | 324,961 | 337,551 |
Fixed assets | 154,550,365 | 148,910,057 |
Construction in progress | 30,422,705 | 29,320,914 |
Construction materials | ||
Disposal of fixed assets | ||
Biological assets for production | ||
Oil and gas assets | ||
Intangible assets | 4,429,450 | 4,252,314 |
Development expenses | ||
Goodwill | 1,102,185 | 1,102,185 |
Long-term deferred expenses | 1,092,035 | 669,414 |
Deferred tax assets | 2,200,934 | 2,983,067 |
Other non-current assets | ||
Total non-current assets | 210,077,938 | 204,805,811 |
Total assets | 239,073,681 | 224,128,192 |
CURRENT LIABILITIES: | ||
Short-term loans | 15,524,160 | 14,488,948 |
Borrowings from central bank | ||
Deposits from clients and placements from other banks | ||
Contributions received | ||
Short-term bonds payable | 599,366 | 5,147,083 |
Financial liabilities at fair value through profit or loss | ||
Derivative financial liabilities | ||
Bills payable | ||
Accounts payable | 14,854,289 | 11,775,901 |
Domestic air traffic liabilities | 2,645,353 | 2,933,845 |
International air traffic liabilities | 3,586,453 | 3,380,091 |
Receipts in advance | 301,142 | 181,050 |
Sale of financial assets repurchased | ||
Fees and commissions payable | ||
Employee compensations payable | 2,612,703 | 2,191,248 |
Taxes payable | 2,425,669 | 1,361,742 |
Interest payable | 864,252 | 761,913 |
Items | Balance at the end of the period | Balance at the beginning of the year |
Dividend payable | ||
Other payables | 8,705,464 | 8,480,453 |
Amounts payable on reinsurance | ||
Reserves on insurance contracts | ||
Brokerage payable | ||
Underwriting fees payable | ||
Held-for-sale liabilities | ||
Non-current liabilities due within a year | 15,162,109 | 13,144,160 |
Other current liabilities | ||
Total current liabilities | 67,280,960 | 63,846,434 |
NON-CURRENT LIABILITIES: | ||
Long-term loans | 8,755,600 | 12,835,222 |
Debentures payable | 21,498,774 | 24,998,024 |
Including: Preference shares | ||
Perpetual bonds | ||
Long-term payables | 3,786,824 | 3,546,586 |
Obligations under finance leases | 38,283,774 | 36,295,471 |
Defined benefit obligations | 277,881 | 269,742 |
Specific payables | ||
Accrued liabilities | 340,200 | 341,919 |
Deferred income | 3,563,064 | 3,092,841 |
Deferred tax liabilities | 940,644 | 2,428,313 |
Other non-current liabilities | ||
Total non-current liabilities | 77,446,761 | 83,808,118 |
Total liabilities | 144,727,721 | 147,654,552 |
Items | Balance at the end of the period | Balance at the beginning of the year |
OWNER'S EQUITY | ||
Share capital | 14,524,815 | 13,084,751 |
Other equity instruments | ||
Including: Preference shares | ||
Perpetual bonds | ||
Capital reserve | 26,270,841 | 16,509,531 |
Less: Treasury shares | ||
Other comprehensive income | -3,236,355 | -2,062,598 |
Specific reserves | ||
Surplus reserves | 8,482,100 | 7,829,643 |
General risk provisions | 66,709 | 66,709 |
Retained earnings | 39,510,043 | 33,448,460 |
Total owner's equity attributable to equity shareholders of the Company | 85,618,153 | 68,876,496 |
Non-controlling interests | 8,727,807 | 7,597,144 |
Total owner's equity | 94,345,960 | 76,473,640 |
Total liabilities and owner's equity | 239,073,681 | 224,128,192 |
Legal representative: Mr. Cai Jianjiang
Person in charge of accounting function: Mr. Xiao Feng
Person in charge of accounting department: Mr. Zhan Zhong
Balance Sheet of the Company
30 September 2017
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 | 8,588,632 | 2,221,952 |
Financial assets at fair value through profit or loss | ||
Derivative financial assets | ||
Bills receivable | ||
Accounts receivable | 4,546,069 | 3,028,488 |
Prepayments | 2,685,865 | 683,229 |
Interest receivable | ||
Dividend receivable | ||
Other receivables | 2,074,987 | 2,449,640 |
Inventories | 139,312 | 130,941 |
Held-for-sale assets | - | 917,136 |
Non-current assets due within a year | ||
Other current assets | 1,233,958 | 829,828 |
Total current assets | 19,268,823 | 10,261,214 |
NON-CURRENT ASSETS: | ||
Available-for-sale financial assets | 22,783 | 22,784 |
Held-to-maturity investments | ||
Entrusted loans | 1,020,000 | 1,020,000 |
Long-term receivables | 453,420 | 470,648 |
Long-term equity investments | 27,426,337 | 26,909,004 |
Investment properties | ||
Fixed assets | 103,565,919 | 97,170,211 |
Construction in progress | 21,670,613 | 22,939,247 |
Construction materials | ||
Disposal of fixed assets | ||
Biological assets for production | ||
Oil and gas assets | ||
Intangible assets | 2,786,113 | 2,555,719 |
Development expenses | ||
Goodwill | ||
Long-term deferred expenses | 746,283 | 338,712 |
Deferred tax assets | 1,912,083 | 1,865,409 |
Other non-current assets | ||
Total non-current assets | 159,603,551 | 153,291,734 |
Total assets | 178,872,374 | 163,552,948 |
CURRENT LIABILITIES: | ||
Short-term loans | 9,463,000 | 13,637,422 |
Short-term bonds payable | ||
Financial liabilities at fair value through profit or loss | ||
Derivative financial liabilities | ||
Bills payable | ||
Accounts payable | 12,985,803 | 10,286,723 |
Domestic air traffic liabilities | 1,846,882 | 1,904,317 |
International air traffic liabilities | 3,192,917 | 3,005,001 |
Receipts in advance | 71,500 | 87,372 |
Employee compensations payable | 1,086,277 | 644,294 |
Taxes payable | 1,334,945 | 857,313 |
Interest payable | 725,423 | 644,030 |
Dividend payable | ||
Other payables | 6,725,014 | 6,975,454 |
Held-for-sale liabilities | ||
Non-current liabilities due within a year | 8,932,249 | 7,769,333 |
Other current liabilities | ||
Total current liabilities | 46,364,010 | 45,811,259 |
NON-CURRENT LIABILITIES: | ||
Long-term loans | 1,945,124 | 3,025,373 |
Debentures payable | 20,500,000 | 24,000,000 |
Including: Preference shares | ||
Perpetual bonds | ||
Long-term payables | 1,742,293 | 1,821,218 |
Obligations under finance leases | 24,192,403 | 22,519,793 |
Defined benefit obligations | ||
Specific payables | ||
Accrued liabilities | 6,041 | 7,760 |
Deferred income | 2,992,205 | 2,614,384 |
Deferred tax liabilities | - | 102,654 |
Other non-current liabilities | ||
Total non-current liabilities | 51,378,066 | 54,091,182 |
Total liabilities | 97,742,076 | 99,902,441 |
Items | Balance at the end of the period | Balance at the beginning of the year |
OWNER'S EQUITY: | ||
Issued capital | 14,524,815 | 13,084,751 |
Other equity instruments | ||
Including: Preference shares | ||
Perpetual bonds | ||
Capital reserve | 30,618,680 | 20,857,370 |
Less: Treasury shares | ||
Other comprehensive income | 221,657 | 198,728 |
Specific reserves | ||
Surplus reserves | 8,444,994 | 7,792,537 |
Retained earnings | 27,320,152 | 21,717,121 |
Total owner's equity | 81,130,298 | 63,650,507 |
Total liabilities and owner's equity | 178,872,374 | 163,552,948 |
Legal representative: Mr. Cai Jianjiang
Person in charge of accounting function: Mr. Xiao Feng
Person in charge of accounting department: Mr. Zhan Zhong
Consolidated Income Statement
January to September 2017
Prepared by Air China Limited
Unit: RMB'000 (Unaudited)
Items | Amounts for the period (July to September) | Amounts for the corresponding period of the previous year (July to September) | Amounts for the period from the beginning of the year to the end of the reporting period (January to September) | Amounts for the period from the beginning of the previous year to the end of the last reporting period (January to September) |
I. Revenue from operations | 34,840,798 | 31,923,192 | 92,995,787 | 85,447,650 |
Including: Revenue | 34,840,798 | 31,923,192 | 92,995,787 | 85,447,650 |
Interest income | ||||
Premium earned | ||||
Fees and commission income | ||||
II. Total operating costs | 27,682,152 | 27,004,261 | 80,858,571 | 76,332,038 |
Including: Operating costs | 25,225,103 | 23,109,253 | 72,889,066 | 64,269,665 |
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 | ||||
Taxes and other levies | 61,408 | 71,544 | 220,290 | 208,970 |
Selling expenses | 1,602,751 | 1,388,155 | 4,674,386 | 4,239,408 |
General and Administrative expenses | 1,028,744 | 1,086,437 | 2,984,453 | 2,982,468 |
Finance expenses | -247,213 | 1,346,147 | 66,338 | 4,636,962 |
Impairment loss of assets | 11,359 | 2,725 | 24,038 | -5,435 |
Add: Gains from changes in fair value(loss is represented by "-" sign) | 215 | 63 | 304 | -47 |
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) |
Investment income (loss isrepresented by "-" sign) | 111,062 | 226,216 | -252,959 | 518,792 |
Including: Share of profits lesslosses of associates andjoint ventures | 94,281 | 208,353 | -306,567 | 467,816 |
Exchange gains(loss is represented by "-" sign) | ||||
Other income | - | - | 419,589 | - |
III. Profit from operations (loss is represented by "-" sign) | 7,269,923 | 5,145,210 | 12,304,150 | 9,634,357 |
Add: Non-operating income | 114,019 | 341,732 | 250,397 | 906,746 |
Including: Gains arising fromdisposal of non-current assets | 50,060 | 39,561 | 51,461 | 40,569 |
Less: Non-operating expenses | 19,445 | 32,790 | 35,293 | 62,025 |
Including: Loss arising fromdisposal of non-current assets | 2,596 | 26,847 | 5,976 | 33,739 |
IV. Total profit (total loss is representedby "-" sign) | 7,364,497 | 5,454,152 | 12,519,254 | 10,479,078 |
Less: Income Taxation | 1,679,317 | 1,149,778 | 2,927,601 | 2,391,003 |
V. Net profit (net loss is representedby "-" sign) | 5,685,180 | 4,304,374 | 9,591,653 | 8,088,075 |
Net profits attributable to shareholders ofthe Company | 4,952,088 | 3,769,087 | 8,278,508 | 7,226,708 |
Net profits attributable to non-controlling interests | 733,092 | 535,287 | 1,313,145 | 861,367 |
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) |
VI. Other comprehensive income after taxation | -472,893 | 160,320 | -1,180,120 | 1,480,351 |
Other comprehensive income aftertaxation attributable to shareholders ofthe Company | -449,799 | 148,995 | -1,173,758 | 1,456,924 |
(I) Other comprehensive incomethat cannot be subsequently reclassified to profit or loss | - | - | -13,441 | 214 |
1. Change arising from re-measurement of net liabilities or net assets in defined benefit plans | - | - | -13,441 | 214 |
2. Share of other comprehensiveincome of the investees accounted for using the equity method that cannot be reclassified to profit or loss | ||||
(II) Other comprehensive income thatwill be subsequently reclassified to profit or loss | -449,799 | 148,995 | -1,160,317 | 1,456,710 |
1. Share of other comprehensive income of the investees accounted for using the equity method that will be subsequently reclassified to profit or loss | - | - | -133,787 | 928,326 |
2. Gains or losses arising from changes in fair value of available-for-sale financial assets | -11,087 | 6,628 | 30,118 | 9,548 |
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) |
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 | -438,712 | 142,367 | -1,056,648 | 518,836 |
6. Others | ||||
Other comprehensive income aftertaxation attributable to non-controlling interests | -23,094 | 11,325 | -6,362 | 23,427 |
VII. Total comprehensive income | 5,212,287 | 4,464,694 | 8,411,533 | 9,568,426 |
Total comprehensive income attributableto shareholders of the Company | 4,502,289 | 3,918,082 | 7,104,750 | 8,683,632 |
Total comprehensive income attributableto non-controlling interests | 709,998 | 546,612 | 1,306,783 | 884,794 |
VIII. Earnings per share: | ||||
(I) Basic earnings per share (RMB per share) | 0.37 | 0.31 | 0.62 | 0.59 |
(II) Diluted earnings per share (RMB per share) | N/A | N/A | N/A | N/A |
Legal representative: Mr. Cai Jianjiang
Person in charge of accounting function: Mr. Xiao Feng
Person in charge of accounting department: Mr. Zhan Zhong
Income Statement of the Company
January to September 2017
Prepared by Air China Limited
Unit: RMB'000 (Unaudited)
Items | Amounts for the period (July to September) | Amounts for the corresponding period of the previous year (July to September) | Amounts for the period from the beginning of the year to the end of the reporting period (January to September) | Amounts for the period from the beginning of the previous year to the end of the last reporting period (January to September) |
I. Revenue from operations | 24,076,193 | 21,968,535 | 64,060,120 | 58,714,178 |
Less: Operating costs | 17,263,149 | 15,663,304 | 50,117,799 | 44,003,631 |
Taxes and other levies | 18,742 | 10,448 | 84,836 | 54,753 |
Selling expenses | 1,148,934 | 1,039,232 | 3,448,329 | 3,134,464 |
General and Administrative expenses | 446,733 | 406,034 | 1,261,209 | 1,164,331 |
Finance expenses | -19,850 | 990,764 | 403,697 | 3,296,035 |
Impairment loss of assets | - | - | 1,991 | -5,283 |
Add: Gains from changes in fair value(loss is represented by "-" sign) | ||||
Investment income (loss isrepresented by "-" sign) | 390,299 | 344,519 | 809,808 | 791,169 |
Including: Share of profits lesslosses of associates and joint ventures | 386,424 | 342,849 | 638,111 | 656,634 |
Other income | ||||
II. Profit from operations (loss is represented by "-" sign) | 5,608,784 | 4,203,272 | 9,552,067 | 7,857,416 |
Add: Non-operating income | 71,965 | 21,223 | 518,651 | 541,096 |
Including: Gains arising fromdisposal of non-current assets | 49,826 | 55 | 50,721 | 169 |
Less: Non-operating expenses | 3,491 | 6,700 | 10,753 | 18,386 |
Including: Loss arising fromdisposal of non-current assets | 695 | 3,447 | 1,422 | 7,684 |
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) |
III. Total profit (total loss is representedby "-" sign) | 5,677,258 | 4,217,795 | 10,059,965 | 8,380,126 |
Less: Income Taxation | 1,308,068 | 915,017 | 2,240,010 | 1,796,148 |
IV. Net profit (net loss is representedby "-" sign) | 4,369,190 | 3,302,778 | 7,819,955 | 6,583,978 |
V. Other comprehensive income after taxation | - | - | 22,929 | 8,713 |
(I) Other comprehensive income thatcannot 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 comprehensiveincome of the investees accounted for using the equity method that cannot be reclassified to profit or loss | ||||
(II) Other comprehensive income that willbe subsequently reclassified to profit or loss | - | - | 22,929 | 8,713 |
1. Share of other comprehensiveincome of the investees accounted for using the equity method that will be subsequently reclassified to profit or loss | - | - | 22,929 | 8,713 |
2. Gains or losses arising fromchanges in fair value of available-for-sale financial assets |
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) |
3. Gains or losses arising fromreclassification of held-to-maturity investments to available-for-sale financial assets | ||||
4. Effective portion of profit or losson cash flow hedge | ||||
5. Exchange difference on translationof financial statements in foreign currency | ||||
6. Others | ||||
VI. Total comprehensive income | 4,369,190 | 3,302,778 | 7,842,884 | 6,592,691 |
VII. Earnings per share: | ||||
(I) Basic earnings per share(RMB per share) | ||||
(II) Diluted earnings per share(RMB per share) |
Legal representative: Mr. Cai Jianjiang
Person in charge of accounting function: Mr. Xiao Feng
Person in charge of accounting department: Mr. Zhan Zhong
Consolidated Cash Flow Statement
January to September 2017
Prepared by Air China Limited
Unit: RMB'000 (Unaudited)
Items | Amounts for the period from the beginning of the year to the end of the reporting period (January 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 | 97,484,664 | 90,128,015 |
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 | 22,972 | 15,127 |
Other cash received relating to operating activities | 2,557,310 | 3,103,870 |
Subtotal of cash inflows of operating activities | 100,064,946 | 93,247,012 |
Cash paid for goods purchased and services received | 52,388,593 | 44,932,237 |
Net increase in loans and advances to clients | ||
Net increase in deposits in central bank and other banks |
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) |
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 | 15,770,795 | 14,129,026 |
Tax and levies paid | 5,235,393 | 4,345,511 |
Other cash paid relating to operating activities | 7,809,511 | 5,832,000 |
Subtotal of cash outflows from operating activities | 81,204,292 | 69,238,774 |
Net cash flows from operating activities | 18,860,654 | 24,008,238 |
II. Cash flows from investment activities: | ||
Cash received from sales and redemption of investments | ||
Recovery of the secured bank deposits | 4,902 | 183,769 |
Cash received from investment income | 218,769 | 494,403 |
Net cash proceeds from disposal of fixed assets, intangible assets and other long-term assets | 2,536,996 | 530,778 |
Net cash received for acquisition of subsidiaries | - | 28,984 |
Net cash proceeds from disposal of subsidiaries and other business units | ||
Other cash received relating to investment activities | 157,169 | 81,044 |
Subtotal of cash inflows from investment activities | 2,917,836 | 1,318,978 |
Cash paid for purchase of fixed assets, intangible assets and other long-term assets | 10,143,733 | 21,208,750 |
Cash paid for investments | 118,132 | 96,342 |
Net increase in secured loans | ||
Net cash payments for acquisition of subsidiaries and other business units | ||
Other cash paid relating to investment activities | 8,382 | 7,717 |
Subtotal of cash outflows from investment activities | 10,270,193 | 21,312,809 |
Net cash flows from investment activities | -7,352,357 | -19,993,831 |
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) |
III. Cash flows from financing activities: | ||
Cash received from capital injection | 11,201,374 | - |
Including: Cash received from capital injection ofminority shareholders in subsidiaries | ||
Cash received from borrowings | 21,516,462 | 13,099,369 |
Cash received from issue of debentures | 600,000 | 15,853,964 |
Other cash received relating to financing activities | ||
Subtotal of cash inflows from financing activities | 33,317,836 | 28,953,333 |
Cash paid for repayment of borrowings | 25,994,065 | 16,634,786 |
Cash paid for repayment of debentures | 5,147,717 | 6,304,325 |
Cash paid for distribution of dividends, profits or payment of interest expenses | 4,184,214 | 3,772,622 |
Including: Dividends and profit paid to minorityshareholders by subsidiaries | 176,120 | 117,592 |
Other cash paid relating to financing activities | 4,441,728 | 4,578,502 |
Subtotal of cash outflows from financing activities | 39,767,724 | 31,290,235 |
Net cash flows from financing activities | -6,449,888 | -2,336,902 |
IV. Effect of exchange rate changes on cash andcash equivalents | -134,197 | 87,729 |
V. Net increase in cash and cash equivalents | 4,924,212 | 1,765,234 |
Add: Balance of cash and cash equivalents as atthe beginning of the period | 6,848,018 | 7,138,098 |
VI. Balance of cash and cash equivalents as at theend of the period | 11,772,230 | 8,903,332 |
Legal representative: Mr. Cai Jianjiang
Person in charge of accounting function: Mr. Xiao Feng
Person in charge of accounting department: Mr. Zhan Zhong
Cash Flow Statement of the Company
January to September 2017
Prepared by Air China Limited
Unit: RMB'000 (Unaudited)
Items | Amounts for the period from the beginning of the year to the end of the reporting period (January 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 | 65,256,623 | 60,505,240 |
Refund of tax and levies | - | 1,183 |
Other cash received relating to operating activities | 1,975,711 | 1,723,740 |
Subtotal of cash inflows of operating activities | 67,232,334 | 62,230,163 |
Cash paid for goods purchased and services received | 38,521,178 | 32,440,751 |
Cash paid to or on behalf of employees | 7,282,311 | 6,311,630 |
Tax and levies paid | 3,211,344 | 2,948,135 |
Other cash paid relating to operating activities | 4,565,204 | 4,184,803 |
Subtotal of cash outflows from operating activities | 53,580,037 | 45,885,319 |
Net cash flows from operating activities | 13,652,297 | 16,344,844 |
II. Cash flows from investment activities: | ||
Cash received from sales and redemption of investments | ||
Cash received from investment income | 402,223 | 283,042 |
Net cash proceeds from disposal of fixed assets, intangible assets and other long-term assets | 917,646 | 479,764 |
Net cash proceeds from disposal of subsidiaries and other business units |
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) |
Other cash received relating to investment activities | 82,256 | 51,339 |
Subtotal of cash inflows from investment activities | 1,402,125 | 814,145 |
Cash paid for purchase of fixed assets, intangible assets and other long-term assets | 5,495,017 | 18,409,054 |
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 | 5,495,017 | 18,409,054 |
Net cash flows from investment activities | -4,092,892 | -17,594,909 |
III. Cash flows from financing activities: | ||
Cash received from capital injection | 11,201,374 | - |
Cash received from borrowings | 11,767,567 | 12,547,842 |
Cash received from issue of debentures | - | 11,200,000 |
Other cash received relating to financing activities | ||
Subtotal of cash inflows from financing activities | 22,968,941 | 23,747,842 |
Cash paid for repayment of borrowings | 19,548,222 | 12,897,193 |
Cash paid for repayment of debentures | - | 4,200,000 |
Cash paid for distribution of dividends, profits or payment of interest expenses | 3,186,951 | 2,978,716 |
Other cash paid relating to financing activities | 3,365,810 | 3,622,865 |
Subtotal of cash outflows from financing activities | 26,100,983 | 23,698,774 |
Net cash flows from financing activities | -3,132,042 | 49,068 |
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) |
IV. Effect of exchange rate changes on cash andcash equivalents | -60,683 | 39,708 |
V. Net increase in cash and cash equivalents | 6,366,680 | -1,161,289 |
Add: Balance of cash and cash equivalents as atthe beginning of the period | 2,221,952 | 3,223,977 |
VI. Balance of cash and cash equivalents as at the end of the period | 8,588,632 | 2,062,688 |
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
Not applicable
By order of the Board
Air China Limited
Zhou Feng Tam Shuit Mui
Joint Company Secretaries
Beijing, the PRC, 27 October 2017
As at the date of this announcement, the directors of the Company are Mr. Cai Jianjiang, Mr. Song Zhiyong, Mr. John Robert Slosar, Mr. Wang Xiaokang*, Mr. Liu Deheng*, Mr. Stanley Hui Hon-chung* and Mr. Li Dajin*.
* Independent non-executive director of the Company