Last checked at 2 Nov 2020 07:42
Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.
中國國際航空股份有限公司
AIR CHINA LIMITED
(a joint stock limited company incorporated in the People's Republic of China with limited liability)
(Stock Code: 00753)
THIRD QUARTERLY REPORT 2020
This announcement is made pursuant to Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) and Rule 13.09 and Rule 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.
The board of directors (the "Board") of Air China Limited (the "Company") held a meeting of the Board on 30 October 2020 and passed the resolution approving the third quarterly report 2020 of the Company for the period ended 30 September 2020 (the "Reporting Period" or "Period") prepared in accordance with the PRC Accounting Standards for Business Enterprises.
I. IMPORTANT NOTICE
1.1 The Board and the supervisory committee of the Company together with the directors, supervisors and the senior management of the Company guarantee that the contents of the quarterly report are true, accurate and complete and do not contain any false representation, misleading statement or material omission, and shall jointly and severally accept legal liability.
1.2 Particulars of absent directors
Name of absent director | Position of absent director | Reason(s) for absence | Name of proxy |
Cai Jianjiang | Chairman | Business engagement | / |
Li Dajin | Independent Director | Business engagement | Wang Xiaokang |
1.3 Mr. Cai Jianjiang (legal representative and the Chairman of the Board of the Company), Mr. Xiao Feng (person in charge of accounting function and the Chief Accountant), and Mr. Zhan Zhong (person in charge of accounting department (accounting superintendent) and the general manager of finance department) hereby guarantee that the financial statements set out in this quarterly report are true, accurate and complete.
1.4 The third quarterly report of the Company is unaudited.
II. BASIC INFORMATION OF THE COMPANY
2.1 Major financial data
Unit: RMB'000
| At the end of theReporting Period | At the end of theprevious year | Increase/decreaseat the end of theReporting Periodas compared tothe end of the previous year |
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|
| (%) |
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Total assets | 290,845,914 | 294,253,553 | -1.16 |
Net assets attributable to shareholders of the listed company | 81,350,516 | 93,505,857 | -13.00 |
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| For the period from thebeginning ofthe year to theend of theReporting Period(January toSeptember) | For thecorrespondingperiod of theprevious year(January toSeptember) | Increase/decreaseas compared tothe correspondingperiod of theprevious year |
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| (%) |
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Net cash flows from operating activities | -1,784,564 | 30,103,490 | -105.93 |
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| For the period from the beginning of the year to the end of the Reporting Period(January to September) | For the corresponding period of the previous year (January to September) | Increase/decreaseas compared to the corresponding period of the previous year |
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| (%) |
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|
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Revenue | 48,454,050 | 103,077,172 | -52.99 |
Net profit attributable to shareholders of the listed company | -10,111,847 | 6,762,090 | -249.54 |
Net profit attributable to shareholders of the listed company after deducting non-recurring profits and losses | -10,344,676 | 6,556,791 | -257.77 |
Weighted average return on net assets (%) | -11.56 | 7.45 | Decreased by 19.01percentage points |
Basic earnings per share (RMB per share) | -0.74 | 0.49 | -251.02 |
Diluted earnings per share (RMB per share) | N/A | N/A | N/A |
Non-recurring profits and losses items and amounts
Applicable Not applicable
Unit: RMB'000
Items | Amounts forthe Period(July toSeptember) | Amounts for the period from the beginning of the year to the end of the Reporting Period(January to September) |
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|
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Gains or losses on disposal of non-current assets | -2,916 | 22,995 |
Government subsidies recorded in the income statement for the current period (excluding those closely related to the Company's normal business and continuously entitled to in fixed amounts or quotas in accordance with the requirements of the state policy) | 90,664 | 340,636 |
Gains or losses from changes in fair value of financial assets/liabilities held for trading and derivative financial assets/liabilities and investment gains from disposal of financial assets/liabilities held for trading and derivative financial assets/liabilities and other debt investments (except for effective hedging activities related to the Company's normal operating business) | - | -124 |
Reversal of provision for impairment of receivables and contract asset which are individually tested for impairment | 72 | 77,441 |
Other non-operating income and expenses not covered above | 41,129 | 31,855 |
Effect of non-controlling shareholders' interests (after taxation) | -21,786 | -124,085 |
Effect of income tax | -29,969 | -115,889 |
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Total | 77,194 | 232,829 |
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2.2 Total number of shareholders, particulars of 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 (account) | 189,677 | |||||
Particulars of the top 10 shareholders | ||||||
Name of shareholder (full name) | Number ofshares heldas at the endof the Period | Share holding percentage | Number of sharesheld subjectto sellingrestrictions |
Shares pledged or frozen | Nature of shareholder | |
Status | Number | |||||
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| (%) |
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China National Aviation Holding Corporation Limited | 5,952,236,697 | 40.98 | 0 | Frozen | 127,445,536 | State-ownedlegal person |
Cathay Pacific Airways Limited | 2,633,725,455 | 18.13 | 0 | Nil | 0 | Foreign legal person |
HKSCC NOMINEES LIMITED | 1,687,580,388 | 11.62 | 0 | Nil | 0 | Foreign legal person |
China National Aviation Corporation (Group) Limited | 1,556,334,920 | 10.72 | 0 | Frozen | 36,454,464 | Foreign legal person |
China National Aviation Fuel Group Corporation | 466,583,102 | 3.21 | 0 | Nil | 0 | State-owned legal person |
China Securities Finance Corporation Limited | 311,302,365 | 2.14 | 0 | Nil | 0 | State-owned legal person |
Hong Kong Securities Clearing Company Ltd. | 97,914,561 | 0.67 | 0 | Nil | 0 | Foreign legal person |
Zhongyuan Equity Investment Management Co., Ltd. | 63,981,101 | 0.44 | 0 | Nil | 0 | State-owned legal person |
Bank of China Limited - Business Promotion Industry Selective Stock Securities Investment Fund (招商行業精選股票型證券投資基金) | 21,142,501 | 0.15 | 0 | Nil | 0 | Domestic non-state-owned legal person |
Industrial and Commercial Bank of China Limited - Dong Fang Hong China Strengthen Balanced Mix Securities Investment Fund | 17,432,430 | 0.12 | 0 | Nil | 0 | Domestic non-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 | ||
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|
China National Aviation Holding Corporation Limited | 5,952,236,697 | RMB ordinary shares | 5,952,236,697 |
Cathay Pacific Airways Limited | 2,633,725,455 | Overseas listed foreign shares | 2,633,725,455 |
HKSCC NOMINEES LIMITED | 1,687,580,388 | Overseas listed foreign shares | 1,687,580,388 |
China National Aviation Corporation (Group) Limited | 1,556,334,920 | RMB ordinary shares | 1,332,482,920 |
|
| Overseas listed foreign shares | 223,852,000 |
China National Aviation Fuel Group Corporation | 466,583,102 | RMB ordinary shares | 466,583,102 |
China Securities Finance Corporation Limited | 311,302,365 | RMB ordinary shares | 311,302,365 |
Hong Kong Securities Clearing Company Ltd. | 97,914,561 | RMB ordinary shares | 97,914,561 |
Zhongyuan Equity Investment Management Co., Ltd. | 63,981,101 | RMB ordinary shares | 63,981,101 |
Bank of China Limited - Business Promotion Industry Selective Stock Securities Investment Fund (招商行業精選股票型證券投資基金) | 21,142,501 | RMB ordinary shares | 21,142,501 |
Industrial and Commercial Bank of China Limited - Dong Fang Hong China Strengthen Balanced Mix Securities Investment Fund | 17,432,430 | RMB ordinary shares | 17,432,430 |
Explanation on connected relationship or action in concert among the above shareholders | China National Aviation Corporation (Group) Limited is a wholly-owned subsidiary of China National Aviation Holding Corporation Limited. Accordingly, China National Aviation Holding Corporation Limited is directly and indirectly interested in 51.70% of the shares of the Company. | ||
Explanation of holders of preference shares withrestored voting rights and number of shares held | Nil | ||
1. HKSCC NOMINEES LIMITED is a subsidiary of The Stock Exchange of Hong Kong Limited and its principal business is acting as nominee for and on behalf of other corporate shareholders or individual shareholders. The 1,687,580,388 H shares held by it in the Company do not include the 166,852,000 shares held by it as nominee of China National Aviation Corporation (Group) Limited.
2. According to the "Implementation Measures on Partial Transfer of State-owned Shares to the National Social Security Fund in the Domestic Securities Market" (Cai Qi [2009] No. 94) (《境內證券市場轉持部分國有股充實全國社會保障基金實施辦法》(財企[2009]94號)) and the Notice ([2009] No. 63) jointly issued by the Ministry of Finance, the State-owned Assets Supervision and Administration Commission of the State Council, China Securities Regulatory Commission and the National Council for Social Security Fund, 127,445,536 shares and 36,454,464 shares held by China National Aviation Holding Corporation Limited, the controlling shareholder of the Company, and China National Aviation Corporation (Group) Limited respectively are frozen at present.
2.3 Total number of holders of preference shares, particulars of the top 10 holders of preference shares and the shareholdings of the top 10 holders of preference shares not subject to selling restrictions as at the end of the Reporting Period
Applicable Not applicable
III. 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
With the spread of the COVID-19 pandemic across the globe, the air transportation industry has been hit hard. In the third quarter, the domestic air passenger market resumption is accelerating but air passenger transportation for international routes remained low. The Group strengthened market research and judgement, kept abreast of the changes in demand, dynamically adjusted the deployment of transport capacity, grasped market opportunities, refined marketing control, optimized yield management, implemented strict cost control, actively reduced cost and increased efficiency and took various initiatives, all with an effort to minimize the impact of the pandemic. In view of the serious impact of the COVID-19 pandemic on the civil aviation transportation industry, from January to September 2020, the Group's revenue amounted to RMB48,454 million and the net loss attributable to shareholders of the parent company amounted to RMB10,112 million.
Unit: RMB'000
Items in consolidated balance sheet | 30 September 2020 | 31 December 2019 | Percentageof Change | Reasons for Change |
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| (%) |
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Other debt investments | 2,799,829 | 1,688,451 | 65.82 | Mainly due to the increase in the investment in debt instrument during the Reporting Period |
Deferred income tax assets | 6,168,439 | 4,291,504 | 43.74 | Mainly due to the increase in the deferred income tax incurred in recognizing the deductible losses |
Short-term loans | 23,903,550 | 13,566,403 | 76.20 | Mainly due to the impact of new borrowings |
Short-term financing bonds payable | 15,075,768 | 7,381,933 | 104.23 | Mainly due to the impact of the issuance of short-term bonds |
Air traffic liabilities | 3,133,113 | 9,980,300 | -68.61 | Decrease in outstanding air traffic tickets as at the end of the Reporting Period as affected by the COVID-19 pandemic |
Employee compensations payable | 1,832,650 | 3,196,108 | -42.66 | Mainly due to the impact of payment of employee compensations and enterprise annuity |
Taxes payable | 214,726 | 1,255,056 | -82.89 | Mainly due to the enterprise income tax paid during the Reporting Period |
Long-term loans | 10,149,944 | 1,200,430 | 745.53 | Mainly due to the impact of new borrowings |
Other comprehensive income | -1,401,114 | -14,562 | -9,521.71 | Mainly due to the impact of the non-profit/loss changes in invested enterprises |
Unit: RMB'000
Items in consolidated income statement | First three quarters of 2020(January to September) | First three quarters of 2019 (January to September) | Percentageof Change | Reasons for Change |
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| (%) |
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Revenue | 48,454,050 | 103,077,172 | -52.99 | Mainly due to the impact of the decrease in traffic during the Reporting Period as a result of the COVID-19 pandemic |
Operating costs | 52,945,632 | 83,228,254 | -36.39 | Mainly due to the impact of the decrease in traffic during the Reporting Period as a result of the COVID-19 pandemic |
Selling expenses | 2,967,568 | 4,901,152 | -39.45 | Mainly due to the corresponding decrease in handling fees from agency services and fees charged for reservation via computers during the Reporting Period as a result of the decrease in traffic volume |
Finance expenses | 2,444,623 | 5,828,398 | -58.06 | Mainly due to the net exchange gains during the Reporting Period and the net exchange loss in the corresponding period of last year |
Investment income (loss) | -3,666,326 | 980,874 | -473.78 | Mainly due to the decline in performance of the associates of the Group during the Reporting Period as affected by the COVID-19 pandemic |
Income tax expenses | -2,107,276 | 1,734,258 | -221.51 | Mainly due to deferred income tax expenses incurred in recognizing the deductible losses during the Reporting Period |
Unit: RMB'000
Items in consolidated statement of cash flows | First three quarters of 2020(January to September) | First three quarters of 2019 (January to September) | Percentageof Change | Reasons for Change |
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| (%) |
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Cash received from sales of goods and provision of services | 44,861,340 | 105,359,920 | -57.42 | Mainly due to the year-on-year decrease in sales revenue during the Period as affected by the COVID-19 pandemic |
Other cash received relating to operating activities | 4,873,350 | 7,687,329 | -36.61 | Mainly due to the year-on-year decrease in deposits of a subsidiary of the Group during the Period |
Cash paid for goods purchased and services received | 30,033,412 | 55,037,672 | -45.43 | Mainly due to the year-on-year decrease in cost expenditure during the Period as affected by the COVID-19 pandemic |
Taxes and levies paid | 1,495,050 | 4,628,178 | -67.70 | Due to the year-on-year decrease in tax paid during the Period |
Other cash paid relating to operating activities | 3,152,563 | 5,157,190 | -38.87 | Mainly due to the year-on-year decrease in other expenses during the Period as affected by the COVID-19 pandemic |
Cash received from investment income | 17,350 | 388,877 | -95.54 | Mainly due to the year-on-year decrease in dividend from joint ventures and associates during the Period |
Net cash proceeds from disposal of fixed assets, intangible assets and other long-term assets | 101,728 | 608,842 | -83.29 | Mainly due to the year-on-year decrease in asset disposal during the Period |
Cash paid for investments | 4,322,061 | 204,325 | 2,015.29 | Mainly due to the Group's subscription of shares of Cathay Pacific during the Reporting Period |
Cash received from issuance of debentures | 29,300,000 | 13,004,875 | 125.30 | Due to the year-on-year increase in the issuance of debentures during the Period |
Cash received from capital injection | - | 400,000 | -100.00 | Due to the receipt of capital injection from minority shareholders by a subsidiary of the Group in the corresponding period of last year |
Cash received from borrowings | 42,857,458 | 12,900,489 | 232.22 | Due to the year-on-year increase in new borrowings during the Period |
Cash paid for repayment of debentures | 19,100,000 | 9,405,725 | 103.07 | Due to the year-on-year increase in repayment of debentures during the Period |
3.2 Analysis and explanation on the progress of significant events and their impact and resolutions
Applicable Not applicable
3.3 Undertakings that were failed to fulfill as scheduled during the Reporting Period
Applicable Not applicable
3.4 Warnings and explanations with regard to forecast of a probable loss in respect of the accumulative net profits from the beginning of the year to the end of the next reporting period or any significant changes as compared with that of the corresponding period of previous year
Applicable Not applicable
In view of the uncertainties of the evolvement of the pandemic and its serious impact on the civil aviation transportation industry, it is estimated that the result of the Group during the period from the beginning of the year to the end of the next reporting period will be significantly affected.
Company name | Air China Limited |
Legal representative | Mr. Cai Jianjiang |
Date | 30 October 2020 |
IV. APPENDICES
4.1 Financial Statements
CONSOLIDATED BALANCE SHEET
30 September 2020
Prepared by Air China Limited
Unit: RMB'000 (Unaudited)
Items | 30 September 2020 | 31 December2019 |
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CURRENT ASSETS: |
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|
Cash and bank | 9,698,597 | 9,663,667 |
Provisions on payables |
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Contributions made |
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Financial assets held-for-trading |
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Derivative financial assets |
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Bills receivable | 4,458 | 362 |
Accounts receivable | 4,523,690 | 5,997,690 |
Receivables financing |
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Prepayments | 521,734 | 479,029 |
Premium receivable |
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Receivables on reinsurance |
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Provisions for reinsurance contracts |
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Other receivables | 3,943,327 | 3,245,439 |
Including: Interest receivable |
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Dividend receivable |
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Purchase of financial assets resold |
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Inventories | 2,677,975 | 2,098,673 |
Contract assets |
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Held-for-sale assets |
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Non-current assets due within a year |
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Other current assets | 3,525,798 | 3,331,996 |
Total current assets | 24,895,579 | 24,816,856 |
Items | 30 September2020 | 31 December2019 |
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NON-CURRENT ASSETS: |
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Loans and advances |
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Debt investments |
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Other debt investments | 2,799,829 | 1,688,451 |
Long-term receivables | 642,187 | 814,507 |
Long-term equity investments | 14,148,963 | 16,051,151 |
Investments in other equity instruments | 210,925 | 255,156 |
Other non-current financial assets |
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Investment properties | 143,040 | 151,443 |
Fixed assets | 88,596,901 | 88,890,118 |
Construction in progress | 36,431,035 | 35,276,017 |
Biological assets for production |
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Oil and gas assets |
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Right-of-use assets | 111,819,242 | 116,827,217 |
Intangible assets | 3,577,035 | 3,722,394 |
Development expenses |
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Goodwill | 1,102,185 | 1,102,185 |
Long-term deferred expenses | 310,554 | 366,554 |
Deferred tax assets | 6,168,439 | 4,291,504 |
Other non-current assets |
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|
Total non-current assets | 265,950,335 | 269,436,697 |
Total assets | 290,845,914 | 294,253,553 |
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Items | 30 September2020 | 31 December2019 |
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CURRENT LIABILITIES: |
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Short-term loans | 23,903,550 | 13,566,403 |
Short-term financing bonds payable | 15,075,768 | 7,381,933 |
Borrowings from central bank |
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Contributions received |
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Financial liabilities held-for-trading |
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Derivative financial liabilities |
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Bills payable |
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Accounts payables | 15,128,179 | 17,307,980 |
Air traffic liabilities | 3,133,113 | 9,980,300 |
Receipts in advance |
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Contract liabilities | 1,236,431 | 1,037,031 |
Sale of financial assets repurchased |
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Deposits from clients and placements from other banks |
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Brokerage payable |
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Underwriting fees payable |
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Employee compensations payable | 1,832,650 | 3,196,108 |
Taxes payable | 214,726 | 1,255,056 |
Other payables | 8,969,677 | 9,031,542 |
Including: Interest payable |
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Dividend payable |
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Fees and commissions payable |
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Amounts payable on reinsurance |
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Held-for-sale liabilities |
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Non-current liabilities due within a year | 18,055,554 | 14,873,364 |
Other current liabilities |
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Total current liabilities | 87,549,648 | 77,629,717 |
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Items | 30 September2020 | 31 December2019 |
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NON-CURRENT LIABILITIES: |
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Reserves on insurance contracts |
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Long-term loans | 10,149,944 | 1,200,430 |
Debentures payable | 14,498,156 | 15,398,535 |
Including: Preference shares |
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Perpetual bonds |
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|
Lease liabilities | 78,795,680 | 86,586,353 |
Long-term payables | 5,701,289 | 4,971,572 |
Long-term employee compensation payables | 248,043 | 249,933 |
Accrued liabilities | 3,031,589 | 3,026,793 |
Deferred income | 550,285 | 521,227 |
Deferred tax liabilities | 335,915 | 621,440 |
Other non-current liabilities | 2,302,686 | 2,670,910 |
Total non-current liabilities | 115,613,587 | 115,247,193 |
Total liabilities | 203,163,235 | 192,876,910 |
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OWNERS' EQUITY(OR SHAREHOLDERS' EQUITY): |
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Paid-up capital (or share capital) | 14,524,815 | 14,524,815 |
Other equity instruments |
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Including: Preference shares |
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Perpetual bonds |
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|
Capital reserve | 26,270,841 | 26,270,841 |
Less: Treasury shares |
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Other comprehensive income | -1,401,114 | -14,562 |
Special reserves |
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|
Surplus reserves | 11,564,287 | 11,026,605 |
General risk provisions | 110,628 | 110,628 |
Retained earnings | 30,281,059 | 41,587,530 |
Total owners' equity (or shareholders' equity) attributable to equity shareholders of the parent company | 81,350,516 | 93,505,857 |
Non-controlling interests | 6,332,163 | 7,870,786 |
Total owners' equity (or shareholders' equity) | 87,682,679 | 101,376,643 |
Total liabilities and owners' equity (or shareholders' equity) | 290,845,914 | 294,253,553 |
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 PARENT COMPANY
30 September 2020
Prepared by Air China Limited
Unit: RMB'000 (Unaudited)
Items | 30 September 2020 | 31 December 2019 |
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CURRENT ASSETS: |
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|
Cash and bank | 4,888,067 | 6,782,234 |
Financial assets held-for-trading |
|
|
Derivative financial assets |
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|
Bills receivable |
|
|
Accounts receivable | 4,000,547 | 4,746,976 |
Receivables financing |
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Prepayments | 233,052 | 220,809 |
Other receivables | 3,461,408 | 2,663,180 |
Including: Interest receivable |
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Dividend receivable |
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Inventories | 185,182 | 79,558 |
Contract assets |
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|
Held-for-sale assets |
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Non-current assets due within a year |
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Other current assets | 2,102,751 | 1,773,630 |
Total current assets | 14,871,007 | 16,266,387 |
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Items | 30 September 2020 | 31 December 2019 |
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NON-CURRENT ASSETS: |
|
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Debt investments |
|
|
Other debt investments |
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Long-term receivables | 992,979 | 906,547 |
Long-term equity investments | 25,019,423 | 25,773,081 |
Investments in other equity instruments | 22,783 | 22,783 |
Other non-current financial assets |
|
|
Investment properties |
|
|
Fixed assets | 64,697,809 | 63,603,497 |
Construction in progress | 25,079,396 | 24,207,431 |
Biological assets for production |
|
|
Oil and gas assets |
|
|
Right-of-use assets | 75,720,195 | 80,217,465 |
Intangible assets | 2,493,707 | 2,584,849 |
Development expenses |
|
|
Goodwill |
|
|
Long-term deferred expenses | 236,328 | 292,361 |
Deferred tax assets | 5,070,106 | 3,684,145 |
Other non-current assets |
|
|
Total non-current assets | 199,332,726 | 201,292,159 |
Total assets | 214,203,733 | 217,558,546 |
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|
|
Items | 30 September 2020 | 31 December 2019 |
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|
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CURRENT LIABILITIES: |
|
|
Short-term loans | 13,418,647 | 10,743,223 |
Short-term financing bonds payable | 12,060,114 |
|
Financial liabilities held-for-trading |
|
|
Derivative financial liabilities |
|
|
Bills payable |
|
|
Accounts payable | 11,412,415 | 13,825,527 |
Air traffic liabilities | 2,456,973 | 8,200,724 |
Receipts in advance |
|
|
Contract liabilities | 879,773 | 785,481 |
Employee compensations payable | 231,969 | 1,339,255 |
Taxes payable | 102,987 | 1,022,716 |
Other payables | 6,676,593 | 9,948,496 |
Including: Interest payable |
|
|
Dividend payable |
|
|
Held-for-sale liabilities |
|
|
Non-current liabilities due within a year | 11,336,262 | 10,212,519 |
Other current liabilities |
|
|
Total current liabilities | 58,575,733 | 56,077,941 |
|
|
|
NON-CURRENT LIABILITIES: |
|
|
Long-term loans | 6,485,008 | 651,779 |
Debentures payable | 10,500,000 | 10,500,000 |
Including: Preference shares |
|
|
Perpetual bonds |
|
|
Lease liabilities | 53,348,479 | 59,443,076 |
Long-term payables | 2,753,156 | 2,374,899 |
Long-term employee compensation payables |
|
|
Accrued liabilities | 2,164,006 | 2,016,618 |
Deferred income | 363,137 | 385,246 |
Deferred tax liabilities |
|
|
Other non-current liabilities | 2,016,341 | 2,345,017 |
Total non-current liabilities | 77,630,127 | 77,716,635 |
Total liabilities | 136,205,860 | 133,794,576 |
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|
|
Items | 30 September 2020 | 31 December 2019 |
|
|
|
OWNERS' EQUITY(OR SHAREHOLDERS' EQUITY): |
|
|
Paid-up capital (or share capital) | 14,524,815 | 14,524,815 |
Other equity instruments |
|
|
Including: Preference shares |
|
|
Perpetual bonds |
|
|
Capital reserve | 30,618,680 | 30,618,680 |
Less: Treasury shares |
|
|
Other comprehensive income | 257,867 | 361,290 |
Special reserves |
|
|
Surplus reserves | 11,527,181 | 10,989,499 |
Retained earnings | 21,069,330 | 27,269,686 |
Total owners' equity (or shareholders' equity) | 77,997,873 | 83,763,970 |
Total liabilities and owners' equity (or shareholders' equity) | 214,203,733 | 217,558,546 |
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 2020
Prepared by Air China Limited
Unit: RMB'000 (Unaudited)
Items | Thirdquarterof 2020(July toSeptember) | Thirdquarterof 2019(July to September) | First three quartersof 2020(January toSeptember) | First threequartersof 2019(January toSeptember) |
|
|
|
|
|
I. Total revenue from operations | 18,808,284 | 37,764,085 | 48,454,050 | 103,077,172 |
Including: Operating income | 18,808,284 | 37,764,085 | 48,454,050 | 103,077,172 |
Interest income |
|
|
|
|
Premium earned |
|
|
|
|
Fees and commission income |
|
|
|
|
|
|
|
|
|
II. Total operating cost | 19,771,161 | 34,488,027 | 61,471,267 | 97,469,922 |
Including: Operating costs | 18,784,033 | 28,451,454 | 52,945,632 | 83,228,254 |
Interest expenses |
|
|
|
|
Fees and commission expenses |
|
|
|
|
Returned premium |
|
|
|
|
Net reimbursement paid |
|
|
|
|
Net amounts of provisions on insurance obligations drawn |
|
|
|
|
Bonus paid on insurance policy |
|
|
|
|
Reinsurance premium |
|
|
|
|
Taxes and other levies | 59,408 | 53,760 | 153,033 | 186,750 |
Selling expenses | 997,142 | 1,578,760 | 2,967,568 | 4,901,152 |
General and administrative expenses | 939,357 | 1,114,125 | 2,737,019 | 3,189,412 |
R&D expenses | 58,788 | 48,676 | 223,392 | 135,956 |
Finance expenses | -1,067,567 | 3,241,252 | 2,444,623 | 5,828,398 |
Including: Interest expenses | 1,281,953 | 1,265,606 | 3,830,249 | 3,705,188 |
Interest income | 51,658 | 40,324 | 107,760 | 103,786 |
Items | Thirdquarterof 2020(July toSeptember) | Thirdquarterof 2019(July to September) | First three quartersof 2020(January toSeptember) | First threequartersof 2019(January toSeptember) |
|
|
|
|
|
Add: Other income | 1,263,362 | 854,438 | 2,989,572 | 2,603,680 |
Investment income (loss is represented by "-" sign) | -795,103 | 688,711 | -3,666,326 | 980,874 |
Including: Share of profits or losses of associates and joint ventures | -809,315 | 676,159 | -3,713,229 | 933,921 |
Derecognition of gains on financial assets measured at amortised cost |
|
|
|
|
Exchange gains (loss is represented by "-" sign) |
|
|
|
|
Gains from net exposure to hedging (loss is represented by "-" sign) |
|
|
|
|
Gains from changes in fair value (loss is represented by "-" sign) |
|
|
|
|
Impairment loss of credit (loss is represented by "-" sign) | -13,990 | 115 | 70,165 | 9,598 |
Impairment loss of assets (loss is represented by "-" sign) |
|
| -137 |
|
Gains from disposal of assets (loss is represented by "-" sign) | 174 | 39,656 | 29,079 | 39,703 |
|
|
|
|
|
III. Profit from operations (loss is represented by "-" sign) | -508,434 | 4,858,978 | -13,594,864 | 9,241,105 |
Add: Non-operating income | 46,209 | 34,142 | 132,287 | 181,899 |
Less: Non-operating expenses | 8,170 | 54,859 | 106,516 | 85,943 |
|
|
|
|
|
IV. Total profit (total loss is represented by "-" sign) | -470,395 | 4,838,261 | -13,569,093 | 9,337,061 |
Less: Income tax expenses | 129,687 | 731,050 | -2,107,276 | 1,734,258 |
|
|
|
|
|
Items | Thirdquarterof 2020(July toSeptember) | Thirdquarterof 2019(July to September) | First three quartersof 2020(January toSeptember) | First threequartersof 2019(January toSeptember) |
|
|
|
|
|
V. Net profit (net loss is represented by "-" sign) | -600,082 | 4,107,211 | -11,461,817 | 7,602,803 |
(I) Classified by continuity of operations |
|
|
|
|
1. Net profit from continuing operations (net loss is represented by "-" sign) | -600,082 | 4,107,211 | -11,461,817 | 7,602,803 |
2. Net profit from discontinued operation (net loss is represented by "-" sign) |
|
|
|
|
(II) Classified by ownership of equity |
|
|
|
|
1. Net profits attributable to shareholders of the Company (net loss is represented by "-" sign) | -670,719 | 3,622,633 | -10,111,847 | 6,762,090 |
2. Net profits attributable to non-controlling interests (net loss is represented by "-" sign) | 70,637 | 484,578 | -1,349,970 | 840,713 |
|
|
|
|
|
VI. Other comprehensive income after taxation | -781,205 | 581,548 | -1,403,285 | 943,205 |
(I) Other comprehensive income after taxation attributable to shareholders of the Company | -779,689 | 563,434 | -1,386,552 | 939,971 |
1. Other comprehensive income that cannot be subsequently reclassified to profit or loss | 9,719 | 4,195 | -123,665 | 122,723 |
(1) Changes arising on remeasurement of defined benefit plans |
|
| -3,324 | 169 |
(2) Other comprehensive income accounted for using the equity method that cannot be reclassified to profit or loss |
|
| -103,423 | 135,529 |
(3) Change in fair value of investments in other equity instruments | 9,719 | 4,195 | -16,918 | -12,975 |
(4) Change in fair value of own credit risk |
|
|
|
|
Items | Thirdquarterof 2020(July toSeptember) | Thirdquarterof 2019(July to September) | First three quartersof 2020(January toSeptember) | First threequartersof 2019(January toSeptember) |
|
|
|
|
|
2. Other comprehensive income that will be reclassified to profit or loss | -789,408 | 559,239 | -1,262,887 | 817,248 |
(1) Other comprehensive income accounted for using the equity method that may be reclassified to profit or loss | 17,326 | 2,263 | -885,536 | 183,668 |
(2) Change in fair value of other debt investments | -5,748 | 1,228 | -8,011 | 357 |
(3) Amount of financial assets reclassified into other comprehensive income |
|
|
|
|
(4) Provisions for credit impairment of other debt investments | 13,272 |
| 17,511 |
|
(5) Reserve for cash flow hedging |
|
|
|
|
(6) Exchange difference on translation of financial statements in foreign currency | -814,258 | 555,748 | -386,851 | 633,223 |
(7) Others |
|
|
|
|
(II) Other comprehensive income after taxation attributable to non-controlling interests | -1,516 | 18,114 | -16,733 | 3,234 |
|
|
|
|
|
VII. Total comprehensive income | -1,381,287 | 4,688,759 | -12,865,102 | 8,546,008 |
(I) Total comprehensive income attributable to shareholders of the Company | -1,450,408 | 4,186,067 | -11,498,399 | 7,702,061 |
(II) Total comprehensive income attributable to non-controlling interests | 69,121 | 502,692 | -1,366,703 | 843,947 |
|
|
|
|
|
VIII. Earnings per share: |
|
|
|
|
(I) Basic earnings per share (RMB per share) | -0.05 | 0.26 | -0.74 | 0.49 |
(II) Diluted earnings per share (RMB per share) | N/A | N/A | N/A | N/A |
For business combination under common control during the Period, the net profit of merged party before the business combination is Nil, and the net profit of the merged party for the last period is Nil.
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 PARENT COMPANY
January to September 2020
Prepared by Air China Limited
Unit: RMB'000 (Unaudited)
Items | Thirdquarterof 2020(July toSeptember) | Thirdquarterof 2019(July to September) | First three quartersof 2020(January toSeptember) | First threequartersof 2019(January toSeptember) |
|
|
|
|
|
I. Revenue from operations | 12,286,917 | 26,223,098 | 32,910,346 | 71,391,493 |
Less: Operating costs | 12,423,781 | 19,874,736 | 35,388,293 | 57,958,834 |
Taxes and other levies | 35,113 | 19,747 | 84,407 | 89,738 |
Selling expenses | 725,140 | 1,040,901 | 2,108,083 | 3,428,987 |
General and administrative expenses | 445,109 | 433,902 | 1,229,054 | 1,265,920 |
R&D expenses | 22,193 | 36,454 | 76,133 | 100,349 |
Finance expenses | -753,955 | 2,342,017 | 1,764,367 | 4,234,529 |
Including: Interest expenses | 904,226 | 894,531 | 2,731,267 | 2,643,770 |
Interest income | 22,829 | 33,626 | 73,634 | 111,339 |
Add: Other income | 810,387 | 507,739 | 1,699,838 | 1,703,472 |
Investment income (loss is represented by "-" sign) | 20,998 | 432,829 | -369,730 | 726,064 |
Including: Share of profits or losses of associates and joint ventures | -142,117 | 431,000 | -650,234 | 462,437 |
Derecognition of gains on financial assets measured at amortised cost |
|
|
|
|
Gains from net exposure to hedging (loss is represented by "-" sign) |
|
|
|
|
Gains from changes in fair value (loss is represented by "-" sign) |
|
|
|
|
Impairment loss of credit (loss is represented by "-" sign) |
|
| 4,378 | -1,469 |
Impairment loss of assets (loss is represented by "-" sign) |
|
|
|
|
Gains from disposal of assets (loss is represented by "-" sign) | 12,680 | 39,580 | 25,885 | 53,024 |
|
|
|
|
|
Items | Thirdquarterof 2020(July toSeptember) | Thirdquarterof 2019(July to September) | First three quartersof 2020(January toSeptember) | First threequartersof 2019(January toSeptember) |
|
|
|
|
|
II. Profit from operations (loss is represented by "-" sign) | 233,601 | 3,455,489 | -6,379,620 | 6,794,227 |
Add: Non-operating income | 5,577 | 7,765 | 10,689 | 16,948 |
Less: Non-operating expenses | 4,670 | 33,541 | 96,270 | 58,488 |
|
|
|
|
|
III. Total profit (total loss is represented by "-" sign) | 234,508 | 3,429,713 | -6,465,201 | 6,752,687 |
Less: Income tax expenses | 49,831 | 707,928 | -1,447,719 | 1,421,550 |
|
|
|
|
|
IV. Net profit (net loss is represented by "-" sign) | 184,677 | 2,721,785 | -5,017,482 | 5,331,137 |
(I) Net profit from continuing operations (net loss is represented by "-" sign) | 184,677 | 2,721,785 | -5,017,482 | 5,331,137 |
(II) Net profit from discontinued operations (net loss is represented by "-" sign) |
|
|
|
|
|
|
|
|
|
V. Other comprehensive income after taxation, net |
|
| -103,423 | 139,404 |
(I) Other comprehensive income that cannot be subsequently reclassified to profit or loss |
|
| -103,423 | 135,529 |
1. Changes arising on remeasurement of defined benefit plans |
|
|
|
|
2. Other comprehensive income accounted for using the equity method that cannot be reclassified to profit or loss |
|
| -103,423 | 135,529 |
3. Change in fair value of investments in other equity instruments |
|
|
|
|
4. Change in fair value of own credit risks of the Company |
|
|
|
|
Items | Thirdquarterof 2020(July toSeptember) | Thirdquarterof 2019(July to September) | First three quartersof 2020(January toSeptember) | First threequartersof 2019(January toSeptember) |
|
|
|
|
|
(II) Other comprehensive income that will be reclassified to profit or loss |
|
|
| 3,875 |
1. Other comprehensive income accounted for using the equity method that may be reclassified to profit or loss |
|
|
| 3,875 |
2. Change in fair value of other debt investments |
|
|
|
|
3. Amount of financial assets reclassified into other comprehensive income |
|
|
|
|
4. Provisions for credit impairment of other debt investments |
|
|
|
|
5. Reserve for cash flow hedging |
|
|
|
|
6. Exchange difference on translation of financial statements in foreign currency |
|
|
|
|
7. Others |
|
|
|
|
|
|
|
|
|
VI. Total comprehensive income | 184,677 | 2,721,785 | -5,120,905 | 5,470,541 |
|
|
|
|
|
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 2020
Prepared by Air China Limited
Unit: RMB'000 (Unaudited)
Items | Firstthree quartersof 2020 (Januaryto September) | Firstthree quartersof 2019 (January to September) |
|
|
|
I. Cash flows from operating activities: |
|
|
Cash received from sales of goods and provision of services | 44,861,340 | 105,359,920 |
Net increase in deposits from clients and placements from 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 |
|
|
Cash received from interest, fees and commission |
|
|
Net increase in contributions received |
|
|
Net increase in cash from repurchase operations |
|
|
Net cash receipt from securities trading as agent |
|
|
Refund of taxes and levies | 24,206 | 55,456 |
Other cash received relating to operating activities | 4,873,350 | 7,687,329 |
Subtotal of cash inflows of operating activities | 49,758,896 | 113,102,705 |
Cash paid for goods purchased and services received | 30,033,412 | 55,037,672 |
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 |
|
|
Net increase in contributions made |
|
|
Cash paid for interest, fees and commissions |
|
|
Cash paid for bonus paid on insurance policy |
|
|
Cash paid to or on behalf of employees | 16,862,435 | 18,176,175 |
Taxes and levies paid | 1,495,050 | 4,628,178 |
Other cash paid relating to operating activities | 3,152,563 | 5,157,190 |
Subtotal of cash outflows from operating activities | 51,543,460 | 82,999,215 |
Net cash flows from operating activities | -1,784,564 | 30,103,490 |
|
|
|
Items | Firstthree quartersof 2020 (Januaryto September) | Firstthree quartersof 2019 (January to September) |
|
|
|
II. Cash flows from investing activities: |
|
|
Cash received from sale and redemption of investments |
|
|
Recovery of the secured bank deposits | 1,713 | 188,681 |
Cash received from investment income | 17,350 | 388,877 |
Net cash proceeds from disposal of fixed assets, intangible assets and other long-term assets | 101,728 | 608,842 |
Net cash proceeds from disposal of subsidiaries and other business units |
|
|
Other cash received relating to investing activities | 107,760 | 162,544 |
Subtotal of cash inflows from investing activities | 228,551 | 1,348,944 |
Cash paid for purchase and construction of fixed assets, intangible assets and other long-term assets | 8,836,759 | 10,696,300 |
Cash paid for investments | 4,322,061 | 204,325 |
Net increase in secured loans |
|
|
Net cash payments for acquisition of subsidiaries and other business units |
|
|
Other cash paid relating to investing activities | 1,633 | 1,201 |
Subtotal of cash outflows from investing activities | 13,160,453 | 10,901,826 |
Net cash flows from investing activities | -12,931,902 | -9,552,882 |
|
|
|
Items | Firstthree quartersof 2020 (Januaryto September) | Firstthree quartersof 2019 (January to September) |
|
|
|
III. Cash flows from financing activities: |
|
|
Cash received from capital injection |
| 400,000 |
Including: Cash received from capital injection of minority shareholders in subsidiaries |
| 400,000 |
Cash received from issuance of debentures | 29,300,000 | 13,004,875 |
Cash received from borrowings | 42,857,458 | 12,900,489 |
Other cash received relating to financing activities |
|
|
Subtotal of cash inflows from financing activities | 72,157,458 | 26,305,364 |
Cash paid for repayment of borrowings | 23,350,268 | 20,436,792 |
Cash paid for repayment of debentures | 19,100,000 | 9,405,725 |
Cash paid for distribution of dividends, profits or payment of interest expenses | 4,447,319 | 5,307,924 |
Including: Dividends and profits paid to minority shareholders by subsidiaries | 16,477 | 193,058 |
Cash paid for leases | 10,454,908 | 10,954,543 |
Other cash paid relating to financing activities |
|
|
Subtotal of cash outflows from financing activities | 57,352,495 | 46,104,984 |
Net cash flows from financing activities | 14,804,963 | -19,799,620 |
|
|
|
IV. Effect of exchange rate changes on cash and cash equivalents | -28,661 | 85,696 |
|
|
|
V. Net increase in cash and cash equivalents | 59,836 | 836,684 |
Add: Balance of cash and cash equivalents as at the beginning of the Period | 8,935,282 | 6,763,183 |
|
|
|
VI. Balance of cash and cash equivalents as at the end of the Period | 8,995,118 | 7,599,867 |
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 PARENT COMPANY
January to September 2020
Prepared by Air China Limited
Unit: RMB'000 (Unaudited)
Items | Firstthree quartersof 2020 (Januaryto September) | Firstthree quartersof 2019 (Januaryto September) |
|
|
|
I. Cash flows from operating activities: |
|
|
Cash received from sales of goods and provision of services | 27,762,035 | 71,128,721 |
Refund of taxes and levies |
|
|
Other cash received relating to operating activities | 2,917,327 | 3,316,144 |
Subtotal of cash inflows of operating activities | 30,679,362 | 74,444,865 |
Cash paid for goods purchased and services received | 20,992,357 | 40,405,604 |
Cash paid to or on behalf of employees | 9,368,424 | 8,661,340 |
Taxes and levies paid | 988,773 | 2,940,642 |
Other cash paid relating to operating activities | 2,194,089 | 3,722,022 |
Subtotal of cash outflows from operating activities | 33,543,643 | 55,729,608 |
Net cash flows from operating activities | -2,864,281 | 18,715,257 |
|
|
|
II. Cash flows from investing activities: |
|
|
Cash received from sale and redemption of investments |
|
|
Cash received from investment income | 17,926 | 413,148 |
Net cash proceeds from disposal of fixed assets, intangible assets and other long-term assets | 41,077 | 1,159,052 |
Net cash proceeds from disposal of subsidiaries and other business units |
|
|
Other cash received relating to investing activities | 73,634 | 111,339 |
Subtotal of cash inflows from investing activities | 132,637 | 1,683,539 |
Cash paid for purchase and construction of fixed assets, intangible assets and other long-term assets | 7,590,082 | 7,557,741 |
Cash paid for investments |
| 1,600,000 |
Net cash payments for acquisition of subsidiaries and other business units |
|
|
Other cash paid relating to investing activities |
|
|
Subtotal of cash outflows from investing activities | 7,590,082 | 9,157,741 |
Net cash flows from investing activities | -7,457,445 | -7,474,202 |
|
|
|
Items | Firstthree quartersof 2020 (Januaryto September) | Firstthree quartersof 2019 (January to September) |
|
|
|
III. Cash flows from financing activities: |
|
|
Cash received from capital injection |
|
|
Cash received from issuance of debentures | 18,500,000 |
|
Cash received from borrowings | 27,066,500 | 11,153,800 |
Other cash received relating to financing activities |
|
|
Subtotal of cash inflows from financing activities | 45,566,500 | 11,153,800 |
Cash paid for repayment of borrowings | 21,598,610 | 11,439,989 |
Cash paid for repayment of debentures | 5,000,000 | 4,000,000 |
Cash paid for distribution of dividends, profits or payment of interest expenses | 3,223,007 | 4,109,951 |
Cash paid for leases | 7,297,486 | 7,585,752 |
Other cash paid relating to financing activities |
|
|
Subtotal of cash outflows from financing activities | 37,119,103 | 27,135,692 |
Net cash flows from financing activities | 8,447,397 | -15,981,892 |
|
|
|
IV. Effect of exchange rate changes on cash and cash equivalents | -19,892 | 18,518 |
|
|
|
V. Net increase in cash and cash equivalents | -1,894,221 | -4,722,319 |
Add: Balance of cash and cash equivalents as at the beginning of the Period | 6,751,816 | 7,149,360 |
|
|
|
VI. Balance of cash and cash equivalents as at the end of the Period | 4,857,595 | 2,427,041 |
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 Particulars in relation to adjustments made to the financial statements as at the beginning of the year for the initial implementation of New Revenue Standard and New Lease Standard since 2020
Applicable Not applicable
4.3 Description of the retrospective adjustment to the comparable figures for the previous period due to the initial implementation of the New Revenue Standard and the New Lease Standard since 2020
Applicable Not applicable
4.4 Auditor's Report
Applicable Not applicable
By Order of the Board
Air China Limited
Zhou Feng
Company Secretary
Beijing, the PRC, 30 October 2020
As at the date of this announcement, the directors of the Company are Mr. Cai Jianjiang, Mr. Song Zhiyong, Mr. Feng Gang, Mr. Patrick Healy, Mr. Xue Yasong, Mr. Wang Xiaokang*, Mr. Duan Hongyi*, Mr. Stanley Hui Hon-chung* and Mr. Li Dajin*.
* Independent non-executive director of the Company