29th Oct 2014 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 REPOPT 2014
This announcement is made pursuant to Rule 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.
The board of directors (the "Board") of Air China Limited (the "Company") hereby announces that a meeting of the Board was held on 28 October 2014 and the Board, among others, passed the resolution approving the quarterly report of the Company for the third quarter of 2014 prepared in accordance with the PRC Accounting Standards.
1. IMPORTANT NOTICE
1.1 The Board, the supervisory committee, as well as the directors, supervisors and senior management of the Company hereby warrant that the contents of this quarterly report are true, accurate and complete and there are no false representations, misleading statements or material omissions in this report, and jointly and severally accept full legal responsibility for this report.
1.2 Directors' absence from the meeting
Name of absent director | Position of absent director | Reason(s) for absence | Name of proxy | |||
Fan Cheng | Director | Business engagement | Song Zhiyong |
1.3 Cai Jianjiang (legal representative of the Company), Xiao Feng (person in charge of accounting function), and Zhan Zhong (person in charge of accounting department (accounting superintendent)) hereby declare that the financial statements set out in this quarterly report are true, accurate and complete.
1.4 The financial statements set out in the third quarterly report of the Company are not audited.
2. MAJOR FINANCIAL DATA OF THE COMPANY AND CHANGES IN SHAREHOLDERS
2.1 Major financial data
Unit: RMB'000
At the end of the reporting period | At the end of the previous year | Increase/decrease at the end of the reporting period as compared to the end of the previous year | ||||
(%) | ||||||
Total assets | 207,714,699 | 205,361,883 | 1.15 | |||
Net asset attributable to shareholders of the listed company | 56,519,763 | 54,154,190 | 4.37 |
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 | 14,729,780 | 14,607,638 | 0.84 | |||
Revenue | 78,911,498 | 73,786,988 | 6.95 | |||
Net profit attributable to shareholders of the listed company | 3,157,021 | 4,061,019 | -22.26 | |||
Net profit attributable to shareholders of the listed company after deducting non-recurring profits and losses | 2,597,360 | 3,810,504 | -31.84 | |||
Weighted average return on net assets (%) | 5.69 | 7.68 | Decreased by 1.99 ppt | |||
Basic earnings per share (RMB) | 0.26 | 0.33 | -21.21 | |||
Diluted earnings per share (RMB) | N/A | N/A | N/A |
Non-recurring profits and losses:
Unit: RMB'000
Amounts for the period(July to September) | From the beginning of the year to the end of the reporting period(January to September) | Remarks | ||||
Items | ||||||
Gains/(losses) from disposal of non-current assets | -30,428 | -45,734 | ||||
Government grants included in the profits and losses for the current period (except for those that are closely related to the Company's normal operating business and qualified under national policy to continually receive certain standard amount and quantities) | 68,069 | 886,038 | ||||
Gain/(loss) from changes in fair value of financial assets/liabilities held for trading and investment gains from disposal of financial assets/ liabilities held for trading and available-for-sale financial assets (except for hedging activities related to the Company's normal operating business) | 4,481 | 2,986 | ||||
Reversal of provision for impairment of receivables which are individually tested for impairment | 111,502 | 112,072 | ||||
Other non-operating income and expenses not covered above | 9,538 | 34,456 | ||||
Effect of income tax | -11,932 | -219,068 | ||||
Effect on minority interest (after tax) | -73,666 | -211,089 | ||||
Total | 77,564 | 559,661 |
2.2 Total number of shareholders, the top 10 shareholders and the top 10 shareholders not subject to selling restrictions as at the end of the reporting period
Total number of shareholders | 265,373 (including 4,384 registered H Share shareholders) |
Particulars of the top 10 shareholdersUnit: share
Name of shareholder (full name) | Changes during the reporting period | Shares held at the end of period | Shareholding percentage (%) | Shares held subject to selling restrictions | Shares pledged or frozen | Nature of shareholder | |
Status | Number | ||||||
China National Aviation Holding Company | 0 | 5,427,546,093 | 41.48 | 192,796,331 | Frozen | 127,445,536 | State |
Cathay Pacific Airways Limited | 0 | 2,633,725,455 | 20.13 | 0 | Nil | Foreign legal person | |
HKSCC NOMINEES LIMITED | 427,900 | 1,678,009,975 | 12.82 | 0 | Unknown | Foreign legal person | |
China National Aviation Corporation (Group) Limited | 0 | 1,556,334,920 | 11.89 | 0 | Frozen | 36,454,464 | Foreign legal person |
China National Aviation Fuel Group Corporation | 0 | 86,300,000 | 0.66 | 0 | Unknown | State-owned legal person | |
Sinotrans Air Transportation Development Co., Ltd. | 0 | 75,800,000 | 0.58 | 0 | Unknown | State-owned legal person | |
New China Life Insurance Company Ltd. - Bonus - Personal Bonus - 018L - FH002 Shanghai | -5,716,419 | 62,661,799 | 0.48 | 0 | Unknown | Unknown | |
Agricultural Bank of China - Baoying Strategic Growth Stock Securities Investment Fund | 40,000,000 | 40,000,000 | 0.31 | 0 | Unknown | Unknown | |
Bank of China Limited - Harvest Research Selected Equity Fund | 39,165,045 | 39,165,045 | 0.30 | 0 | Unknown | Unknown | |
Bank of China Limited - Baoying Core Competence Flexible Allocation Balanced Securities Investment Fund | 20,000,000 | 20,000,000 | 0.15 | 0 | Unknown | Unknown | |
Particulars of the top 10 shareholders not subject to selling restrictions
Name of shareholder of shares | Number of tradable shares held not subject to selling restrictions | Class and number | ||
Class | Number | |||
China National Aviation Holding Company | 5,234,749,762 | RMB ordinary shares | 5,234,749,762 | |
Cathay Pacific Airways Limited | 2,633,725,455 | Overseas listed foreign shares | 2,633,725,455 | |
HKSCC NOMINEES LIMITED | 1,678,009,975 | Overseas listed foreign shares | 1,678,009,975 | |
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 | 86,300,000 | RMB ordinary shares | 86,300,000 | |
Sinotrans Air Transportation Development Co., Ltd. | 75,800,000 | RMB ordinary shares | 75,800,000 | |
New China Life Insurance Company Ltd. - Bonus - Personal Bonus - 018L - FH002 Shanghai | 62,661,799 | RMB ordinary shares | 62,661,799 | |
Agricultural Bank of China - Baoying Strategic Growth Stock Securities Investment Fund | 40,000,000 | RMB ordinary shares | 40,000,000 | |
Bank of China Limited - Harvest Research Selected Equity Fund | 39,165,045 | RMB ordinary shares | 39,165,045 | |
Bank of China Limited - Baoying Core Competence Flexible Allocation Balanced Securities Investment Fund | 20,000,000 | RMB ordinary shares | 20,000,000 | |
Explanations on connected relationship or action in concert among the above shareholders | China National Aviation Corporation (Group) Limited is a wholly-owned subsidiary of China National Aviation Holding Company. Accordingly, China National Aviation Holding Company is directly and indirectly interested in 53.37% shares of the Company. | |||
Notes:
1. HKSCC NOMINEES LIMITED is a subsidiary of The Stock Exchange of Hong Kong Limited and its principal business is acting as nominee for and on behalf of other corporate shareholders or individual shareholders. The 1,678,009,975 H Shares held by it in the Company does 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 and China National Aviation Corporation (Group) Limited respectively, the controlling shareholder of the Company, are frozen at present.
3. SIGNIFICANT EVENTS
3.1 Particulars of, and reasons for, significant changes in major items in the accounting statements and key financial indicators of the Company
√ Applicable □ Not applicable
The total profit of the Group for the period from January to September in 2014 was RMB4.275 billion, representing a decrease of 24.48% as compared to the corresponding period of the previous year; net profit attributable to the shareholders of the listed company was RMB3.157 billion, representing a decrease of 22.26% as compared to the corresponding period of the previous year. The decrease in both total profit of the Group and net profit attributable to the shareholders of the listed company was mainly due to net foreign exchange losses arising from the depreciation of RMB, resulting in a decrease of profit by RMB2.267 billion as compared to the corresponding period of the previous year. During the reporting period, operating profit after deducting foreign exchange gains and losses increased by RMB410 million as compared to the corresponding period of the previous year, mainly due to the combined effects of improved utilization efficiency of transportation capacity, as well as lower fuel price as compared to that of the corresponding period of the previous year.
Unit: RMB'000
Items in consolidated balance sheet | As of 30 September 2014 | As of 31 December 2013 (Adjusted) | Amount of Change | Percentage | Reasons for Change | |||||
Cash and bank balances | 10,588,476 | 15,507,677 | -4,919,201 | -31.72% | Mainly due to more repayments of debts due for repayment financed by the Group's own funds during the reporting period. | |||||
Prepayments | 951,694 | 679,962 | 271,732 | 39.96% | Mainly due to the increase in jet fuel prepayments and aircraft lease prepayments under operating lease. | |||||
Non-current assets held for sale | 233,418 | 994,413 | -760,995 | -76.53% | Mainly due to the decrease in the number of aircraft held for sale as at the end of the reporting period. | |||||
Other current assets | 2,292,316 | 1,236,939 | 1,055,377 | 85.32% | Mainly due to the increase in deductible input VAT as at the end of the reporting period. | |||||
Available-for- sale financial assets | 162,387 | 47,968 | 114,419 | 238.53% | Mainly due to the change in the fair value of available-for-sale financial assets during the reporting period. | |||||
Short-term bonds payable | 700,000 | -700,000 | -100.00% | Repayment of short-term commercial papers of RMB700 million during the reporting period. | ||||||
Bills payable | 441,234 | 441,234 | 100.00% | Increase in settlement by bills payable during the period. | ||||||
Taxes payable | 937,477 | 711,649 | 225,828 | 31.73% | Mainly due to the increase in enterprise income tax payable by the parent company. | |||||
Non-current liabilities due within one year | 13,112,926 | 20,507,235 | -7,394,309 | -36.06% | Mainly due to the decrease in long-term borrowings due within one year. | |||||
Long-term borrowings | 30,344,571 | 23,266,406 | 7,078,165 | 30.42% | Mainly due to certain new long- term borrowings raised under the capital expenditure scheme and financing scheme of the Company. |
Items in consolidated income statement | For the period from the beginning of the year to the end of the reporting period | For the corresponding period of the previous year | Amount of Change | Percentage | Reasons for Change | |||||
Business taxes and other levies | 141,343 | 258,278 | -116,935 | -45.27% | Mainly due to timing differences for the implementation of value-added tax to replace business tax in various regions leading to different taxation policies as compared to the corresponding period of the previous year. | |||||
Finance expenses | 3,020,576 | 498,895 | 2,521,681 | 505.45% | Due to net foreign exchange loss recognized during the reporting period as a result of the appreciation of US$ against RMB, as compared to net foreign exchange gain of the corresponding period of the previous year. | |||||
Impairment loss of assets | -104,299 | 18,491 | -122,790 | -664.05% | Mainly due to the reversal of the bad debt provision for other receivables in prior years by a subsidiary of the Group during the reporting period. | |||||
Non-operating income | 963,743 | 462,760 | 500,983 | 108.26% | Mainly due to the increase in subsidy income received during the reporting period as compared to the corresponding period of the previous year. | |||||
Non-operating expenses | 88,983 | 59,046 | 29,937 | 50.70% | Mainly due to the increase in loss on disposal of fixed assets. | |||||
Net profits attributable to non- controlling interests | 224,280 | 330,911 | -106,631 | -32.22% | Mainly due to the decrease in total profit of non-wholly owned subsidiary of the Group for the reporting period as compared to the corresponding period of the previous year. |
Items in consolidated statement of cash flows | For the period from the beginning of the year to the end of the reporting period | For the corresponding period of the previous year | Amount of Change | Percentage | Reasons for Change | |||||
Other cash received relating to operating activities | 2,321,067 | 1,510,584 | 810,483 | 53.65% | Mainly due to the increase in non- operating income during the reporting period as compared to the corresponding period of the previous year. | |||||
Cash received from investment income | 334,851 | 216,825 | 118,026 | 54.43% | Increase in dividends received from investees during the reporting period. | |||||
Net cash proceeds from disposal of fixed assets, intangible assets and other long- term assets | 1,571,984 | 975,168 | 596,816 | 61.20% | Increase in aircraft disposals completed in this reporting period as compared to the corresponding period of the previous year. | |||||
Other cash received relating to investment activities | 875,087 | 429,771 | 445,316 | 103.62% | Mainly due to the greater change in the balance of secured deposits during the reporting period as compared to the corresponding period of the previous year. | |||||
Cash paid for purchase of fixed assets, intangible assets and other long- term assets | 10,262,602 | 15,668,864 | -5,406,262 | -34.50% | Decrease in prepayments for the purchase of aircraft and payment of the balance of purchase prices upon the delivery of aircraft during the reporting period as compared to the corresponding period of the previous year. | |||||
Other cash paid relating to investing activities | 44,354 | 124,827 | -80,473 | -64.47% | Mainly due to the decrease in the loss on derivative settlement as compared to the corresponding period of the previous year. | |||||
Cash received from capital injection | 1,044,449 | -1,044,449 | -100.00% | The Company privately issued ordinary shares (A shares) to the parent company during the corresponding period of the previous year. | ||||||
Cash received from issue of debentures | 10,000,000 | -10,000,000 | -100.00% | The Company issued corporate bonds during the corresponding period of the previous year. | ||||||
Cash paid for repayment of borrowings | 36,224,773 | 23,904,226 | 12,320,547 | 51.54% | The Company made greater payments of debts due for repayment during the reporting period as compared to the corresponding period of the previous year. |
3.2 Analysis and explanation on the progress of significant events and their impact and resolutions
□ Applicable √ Not applicable
3.3 Performance of undertakings given by the Company and the shareholders holding more than 5% of the shares of the Company
√ Applicable □ Not applicable
Background of undertakings | Type of undertakings | The party making the undertakings | Contents of undertakings | Date and duration of undertakings | Is there performance duration? | Are they timely and strictly performed? | ||||||
Undertakings in relation to refinancing | Related party transactions | CNAHC | China National Aviation Holding Company ("CNAHC") made the undertakings in respect of matters relating to deposits and loans business between the Company and China National Aviation Finance Co., Ltd. ("CNAF"), a subsidiary of CNAHC, as follows: (1) CNAF is a duly incorporated enterprise group finance company pursuant to the Administrative Measures for Enterprise Groups Finance Companies and other relevant rules and regulations, and sets up sound internal control and financial accounting systems. The operations of CNAF are in compliance with the requirements of the relevant rules and regulations and it is running very well, therefore the Company's deposits placed with and loans from CNAF are definitely secure. In the future, CNAF will continue to operate in strict compliance with the requirements of the relevant rules and regulations; (2) As the Company is independent from CNAHC in respect of its assets, businesses, personnel, finance and organizations, CNAHC will continue to ensure independence of the Company and fully respect the rights of the Company to determine its own operations. The deposits and loans business activities between the Company and CNAF are decided by the Company in its sole discretion in accordance with the relevant regulatory requirements and actual operating needs, and the internal procedures are to be performed according to the relevant laws and regulations and the articles of association of the Company. CNAHC will not intervene the decisions of the Company; | |||||||||
Background of undertakings | Type of undertakings | The party making the undertakings | Contents of undertakings | Date and duration of undertakings | Is there performance duration? | Are they timely and strictly performed? | ||||||
(3) According to the Administrative Measures for Enterprise Groups Finance Companies, in the event of crisis involving payment difficulties of CNAF, CNAHC will increase the capital of CNAF to the extent required for resolving such payment difficulties, so as to ensure the security of the Company's deposits placed with CNAF. | The undertakings were made on 12 August 2010 | No | Yes | |||||||||
Undertakings in relation to refinancing
| Related party transactions | The Company | Under the framework of the financial services agreement signed by the Company and CNAF on 20 November 2012, it is assured that the maximum daily balance of deposits placed by the Company and its holding subsidiaries with CNAF shall be less than the maximum daily balance of loans and other credit services granted by CNAF to the Company and its holding subsidiaries, and the average daily balance of deposits placed by the Company and its holding subsidiaries with CNAF in each accounting year shall be less than the average daily balance of loans and other credit services actually granted by CNAF to the Company and its holding subsidiaries in the relevant year. | The undertakings were made on 17 October 2012 and shall be fulfilled on or before 31 December 2015 | Yes | Yes | ||||||
Other undertakings | Shares sale restriction | CNAHC | On 20 December 2013, CNAHC increased its shareholdings in the Company by 760,000 A shares via the trading system of the Shanghai Stock Exchange, representing 0.01% of the total issued share capital of the Company (the "First Share Acquisition"). CNAHC intends to continue to increase its shareholdings in the Company, either in its own name or through parties acting in concert with it, via the secondary market within 12 months from 20 December 2013 up to an aggregated amount not exceeding 2% of the total issued share capital of the Company (including the increased shareholdings in the First Share Acquisition). CNAHC undertakes that it will not sell any shares it holds in the Company during the period of the implementation of the acquisition plan and within the statutory period. | The undertakings were made on 21 December 2013 and shall be fulfilled on or before 19 June 2015 | Yes | Yes |
3.4 Warning in respect of forecast of possible net loss from the beginning of the year to the end of the next reporting period or warning in respect of any significant changes in net profit as compared with that of the corresponding period of previous year and the underlying reasons
□ Applicable √ Not applicable
3.5 Effect of implementation of new accounting standards on consolidated financial statements
The Company had prospectively implemented five new standards (Accounting Standard for Business Enterprises No. 9 - Employee benefits, Accounting Standard for Business Enterprises No. 30 - Presentation of financial statements, Accounting Standard for Business Enterprises No. 33 - Consolidated financial statements, Accounting Standard for Business Enterprises No. 39 - Fair value measurement and Accounting Standard for Business Enterprises No. 40 - Joint arrangement) in its 2013 Annual Report. Except for retrospective reduction made on consolidated long-term equity investments of RMB292 million, capital reserve of RMB207 million and retained earnings of RMB85 million as at the beginning of 2013 in accordance with Accounting Standard for Business Enterprises No. 9 - Employee benefits, the other four standards did not affect the data presented in the financial statements of the Company. The remaining two new standards were implemented from 1 July 2014. In accordance with Accounting Standard for Business Enterprises No. 2 - Long-term equity investments, retrospective reduction was made on consolidated long- term equity investments of RMB48 million, and retrospective increase was made on available-for-sale financial assets of RMB48 million as at the beginning of 2014. Accounting Standard for Business Enterprises No. 41 - Disclosure of interests in other entities did not affect the data presented in the financial statements of the Company.
3.5.1 Effect of change in standard on long-term equity investments on consolidated financial report (I)
Unit: RMB'000
Investees | Basic information of the transaction | 1 January 2013 | 31 December 2013 | |||||||
Equity attributable to shareholders of the Company (+/-) | Long-term equity investments (+/-) | Available-for-sale financial assets (+/-) | Equity attributable to shareholdersof the Company (+/-) | |||||||
Shenzhen Civil Aviation Cares Co., Ltd. | -2,588 | 2,588 | ||||||||
Hainan Civil Aviation Cares Co., Ltd. | -512 | 512 | ||||||||
Aviation Data Communication Corporation | -1,331 | 1,331 | ||||||||
Guangzhou Baiyun International Airport Ground Handling Service Company Limited | -18,744 | 18,744 | ||||||||
China National Aviation Investment Holding Company | 0 | 0 | ||||||||
TravelSky Technology Limited | -9,600 | 9,600 | ||||||||
Wuxi Airport Co., Ltd. | -15,193 | 15,193 | ||||||||
Xibei Leasing Co., Ltd. | 0 | 0 | ||||||||
Henan Airlines Co., Ltd. | 0 | 0 | ||||||||
Jade Cargo International Airlines Co., Ltd. | 0 | 0 | ||||||||
Total | -47,968 | 47,968 | ||||||||
Explanation on effect of change in standard on long-term equity investments on consolidated financial report (I)
In accordance with the standard, the investees on which the Company has no control, joint control or significant influence shall be accounted for as available-for-sale financial assets.
Air China LimitedLegal representative: Cai Jianjiang28 October 2014 |
4. APPENDIX
4.1 Financial Statements
Consolidated Balance Sheet30 September 2014
Prepared by Air China Limited
Unit: RMB'000 (Unaudited)
Items | Balance at the end of period | Balance at the beginning of the year | ||
CURRENT ASSETS: | ||||
Cash and bank balances | 10,588,476 | 15,507,677 | ||
Provisions on payables | ||||
Contributions made | ||||
Financial assets at fair value through profit or loss | 24,064 | 11,350 | ||
Bills receivable | 381 | 131 | ||
Accounts receivable | 3,153,136 | 3,100,584 | ||
Prepayments | 951,694 | 679,962 | ||
Premium receivable | ||||
Receivables on reinsurance | ||||
Provisions for reinsurance contracts | ||||
Interest receivable | ||||
Dividend receivable | ||||
Other receivables | 2,880,572 | 2,849,938 | ||
Purchase of financial assets resold | ||||
Inventories | 1,094,874 | 1,044,617 | ||
Non-current assets due within a year | ||||
Fixed assets held for sale | 233,418 | 994,413 | ||
Other current assets | 2,292,316 | 1,236,939 | ||
Total current assets | 21,218,931 | 25,425,611 | ||
NON-CURRENT ASSETS: | ||||
Loans and advances | ||||
Available-for-sale financial assets | 162,387 | 47,968 | ||
Held-to-maturity investments | ||||
Long-term receivables | 537,309 | 451,404 | ||
Long-term equity investments | 16,062,078 | 15,939,840 | ||
Investment properties | 237,826 | 246,291 | ||
Fixed assets | 133,307,160 | 123,988,709 | ||
Construction in progress | 28,448,363 | 31,772,505 | ||
Construction materials | ||||
Disposal of fixed assets | ||||
Biological assets for production | ||||
Oil and gas assets | ||||
Intangible assets | 3,245,262 | 2,864,299 | ||
Development expenses | ||||
Goodwill | 1,102,185 | 1,102,185 | ||
Long-term deferred expenses | 381,096 | 363,536 | ||
Deferred tax assets | 3,012,102 | 3,159,535 | ||
Other non-current assets | ||||
Total non-current assets | 186,495,768 | 179,936,272 | ||
Total assets | 207,714,699 | 205,361,883 | ||
CURRENT LIABILITIES: | ||||
Short-term loans | 21,600,118 | 22,821,013 | ||
Short-term bonds payable | 700,000 | |||
Borrowings from central bank | ||||
Deposits from clients and placements from other banks | ||||
Contributions received | ||||
Financial liabilities at fair value through profit or loss | 13,430 | 24,070 | ||
Bills payable | 441,234 | |||
Accounts payable | 12,557,360 | 11,828,973 | ||
Domestic air traffic liabilities | 1,745,811 | 1,785,306 | ||
International air traffic liabilities | 2,950,280 | 2,676,142 | ||
Receipts in advance | 110,866 | 133,112 | ||
Sale of financial assets repurchased | ||||
Fees and commissions payable | ||||
Salaries and wages payable | 1,569,233 | 2,239,516 | ||
Taxes payable | 937,477 | 711,649 | ||
Interest payable | 779,441 | 712,165 |
Items | Balance at the end of period | Balance at the beginning of the year | ||
Dividend payable | ||||
Other payables | 5,166,087 | 5,505,080 | ||
Amounts payable on reinsurance | ||||
Reserves on insurance contracts | ||||
Brokerage payable | ||||
Underwriting fees payable | ||||
Non-current liabilities due within a year | 13,112,926 | 20,507,235 | ||
Other current liabilities | ||||
Total current liabilities | 60,984,263 | 69,644,261 | ||
NON-CURRENT LIABILITIES: | ||||
Long-term borrowings | 30,344,571 | 23,266,406 | ||
Debentures payable | 16,000,000 | 19,000,000 | ||
Long-term payables | 3,402,724 | 3,376,552 | ||
Obligations under finance leases payable | 29,741,503 | 25,972,715 | ||
Specific payables | ||||
Estimated liabilities | 370,251 | 376,601 | ||
Deferred income | 4,158,681 | 3,767,948 | ||
Deferred income tax liabilities | 2,252,409 | 2,014,407 | ||
Other non-current liabilities | ||||
Total non-current liabilities | 86,270,139 | 77,774,629 | ||
Total liabilities | 147,254,402 | 147,418,890 | ||
OWNER'S EQUITY (OR SHAREHOLDERS' EQUITY): | ||||
Issued capital | 13,084,751 | 13,084,751 | ||
Capital reserve | 17,957,748 | 18,318,568 | ||
Less: Treasury shares | ||||
Specific reserves | ||||
Surplus reserves | 5,481,256 | 5,233,245 | ||
General risk provisions | ||||
Profit available for appropriation | 23,560,484 | 21,245,364 | ||
Foreign exchange translation reserve | -3,564,476 | -3,727,738 | ||
Total owner's equity attributable to shareholders of the Company | 56,519,763 | 54,154,190 | ||
Non-controlling interests | 3,940,534 | 3,788,803 | ||
Total owner's equity | 60,460,297 | 57,942,993 | ||
Total liabilities and owner's equity | 207,714,699 | 205,361,883 |
Legal representative: Cai JianjiangPerson in charge of accounting function: Xiao FengPerson in charge of accounting department: Zhan Zhong
Balance Sheet of the Parent Company30 September 2014
Prepared by Air China Limited
Unit: RMB'000 (Unaudited)
Items | Balance at the end of the period | Balance at the beginning of the year | ||
CURRENT ASSETS: | ||||
Cash and bank balances | 3,738,797 | 6,587,506 | ||
Held-for-trading financial assets | ||||
Bills receivable | ||||
Accounts receivable | 4,223,657 | 3,432,286 | ||
Prepayments | 489,092 | 394,823 | ||
Interest receivable | ||||
Dividend receivable | ||||
Other receivables | 3,006,956 | 2,841,241 | ||
Inventories | 656,140 | 619,845 | ||
Entrusted loans | 1,020,000 | |||
Non-current assets due within a year | ||||
Fixed assets held for sale | 233,419 | 577,627 | ||
Other current assets | 1,760,961 | 1,022,022 | ||
Total current assets | 15,129,022 | 15,475,350 | ||
NON-CURRENT ASSETS: | ||||
Available-for-sale financial assets | 22,784 | 22,784 | ||
Held-to-maturity investments | ||||
Long-term receivables | 337,680 | 260,921 | ||
Long-term equity investments | 23,226,620 | 22,663,811 | ||
Investment properties | ||||
Fixed assets | 93,325,868 | 92,051,664 | ||
Construction in progress | 19,122,493 | 20,292,144 | ||
Construction materials | ||||
Disposal of fixed assets | ||||
Biological assets for production | ||||
Oil and gas assets | ||||
Intangible assets | 2,088,213 | 2,121,602 | ||
Development expenses | ||||
Goodwill | ||||
Long-term deferred expenses | 177,755 | 127,045 | ||
Deferred tax assets | 1,748,449 | 2,102,909 | ||
Other non-current assets | ||||
Total non-current assets | 140,049,862 | 139,642,880 | ||
Total assets | 155,178,884 | 155,118,230 | ||
CURRENT LIABILITIES: | ||||
Short-term loans | 13,314,115 | 11,681,204 | ||
Financial liabilities at fair value through profit or loss | 3,819 | |||
Bills payable | ||||
Accounts payable | 9,036,881 | 8,548,547 | ||
Domestic air traffic liabilities | 1,306,740 | 1,297,248 | ||
International air traffic liabilities | 2,712,839 | 2,402,980 | ||
Receipts in advance | 94,202 | 78,145 | ||
Salaries and wages payable | 591,354 | 1,192,412 | ||
Taxes payable | 670,538 | 368,760 | ||
Interest payable | 681,269 | 631,840 | ||
Dividend payable | ||||
Other payables | 3,509,760 | 1,897,005 |
Items | Balance at the end of the period | Balance at the beginning of the year | ||
Non-current liabilities due within a year | 9,712,472 | 17,661,914 | ||
Other current liabilities | ||||
Total current liabilities | 41,630,170 | 45,763,874 | ||
NON-CURRENT LIABILITIES: | ||||
Long-term borrowings | 15,494,241 | 10,937,026 | ||
Debentures payable | 16,000,000 | 19,000,000 | ||
Long-term payables | 1,631,528 | 1,656,739 | ||
Obligations under finance leases payable | 23,604,463 | 23,444,512 | ||
Specific payables | ||||
Estimated liabilities | 28,592 | 34,942 | ||
Deferred income | 3,133,755 | 2,621,292 | ||
Deferred income tax liabilities | 119,313 | 244,745 | ||
Other non-current liabilities | ||||
Total non-current liabilities | 60,011,892 | 57,939,256 | ||
Total liabilities | 101,642,062 | 103,703,130 | ||
OWNER'S EQUITY (OR SHAREHOLDERS' EQUITY): | ||||
Issued capital | 13,084,751 | 13,084,751 | ||
Capital reserve | 20,988,932 | 20,963,029 | ||
Less: Treasury shares | ||||
Specific reserves | ||||
Surplus reserves | 5,481,256 | 5,233,245 | ||
General risk provisions | ||||
Profit available for appropriation | 13,981,883 | 12,134,075 | ||
Total owner's equity (or shareholders' equity) | 53,536,822 | 51,415,100 | ||
Total liabilities and owner's equity (or shareholders' equity) | 155,178,884 | 155,118,230 |
Legal representative: Cai JianjiangPerson in charge of accounting function: Xiao FengPerson in charge of accounting department: Zhan Zhong
Consolidated Income Statement
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 | 29,794,197 | 27,928,675 | 78,911,498 | 73,786,988 | ||||
Including: Operating income | 29,794,197 | 27,928,675 | 78,911,498 | 73,786,988 | ||||
Interest income | ||||||||
Premium earned | ||||||||
Fees and commission income | ||||||||
II. Total operating costs | 26,488,767 | 24,317,952 | 76,168,272 | 69,110,000 | ||||
Including: Operating costs | 23,018,492 | 21,254,349 | 65,317,714 | 60,785,053 | ||||
Interest expenses | ||||||||
Fees and commission expenses | ||||||||
Returned premium | ||||||||
Net reimbursement paid | ||||||||
Net amounts of provisions on insurance contracts drawn | ||||||||
Bonus paid on insurance policy | ||||||||
Reinsurance premium | ||||||||
Business taxes and other levies | 56,936 | 81,707 | 141,343 | 258,278 | ||||
Selling expenses | 1,900,250 | 1,937,006 | 5,497,335 | 5,334,748 | ||||
Administrative expenses | 799,298 | 763,969 | 2,295,603 | 2,214,535 | ||||
Finance expenses | 825,330 | 280,574 | 3,020,576 | 498,895 | ||||
Impairment loss of assets | -111,539 | 347 | -104,299 | 18,491 | ||||
Add: Gains from changes in fair value (loss is represented by "-" sign) | 4,758 | -2,091 | 4,335 | -3,045 | ||||
Investment income (loss is represented by "-" sign) | 406,026 | 412,552 | 652,875 | 583,053 | ||||
Including: Gains arising from investments in associated companies and joint ventures | 404,093 | 411,273 | 648,723 | 579,884 | ||||
Exchange gains (loss is represented by "-" sign) | ||||||||
III. Profit from operations (loss is represented by "-" sign) | 3,716,214 | 4,021,184 | 3,400,436 | 5,256,996 | ||||
Add: Non-operating income | 86,104 | 145,817 | 963,743 | 462,760 | ||||
Less: Non-operating expenses | 38,926 | 18,373 | 88,983 | 59,046 |
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) | ||||
Including: Loss arising from disposal of non-current assets | 32,661 | 5,919 | 70,630 | 26,946 | ||||
IV. Total profit (total loss is represented by "-" sign) | 3,763,392 | 4,148,628 | 4,275,196 | 5,660,710 | ||||
Less: Income tax expenses | 803,629 | 882,197 | 893,895 | 1,268,780 | ||||
V. Net profit (net loss is represented by "-" sign) | 2,959,763 | 3,266,431 | 3,381,301 | 4,391,930 | ||||
Net profits attributable to shareholders of the listed company | 2,682,640 | 2,942,127 | 3,157,021 | 4,061,019 | ||||
Net profits attributable to non- controlling interests | 277,123 | 324,304 | 224,280 | 330,911 | ||||
VI. Earnings per share: | ||||||||
(I) Basic | 0.22 | 0.24 | 0.26 | 0.33 | ||||
(II) Diluted | N/A | N/A | N/A | N/A | ||||
VII. Other consolidated gains | 78,122 | -92,744 | -153,070 | 47,459 | ||||
VIII. Total consolidated gains | 3,037,885 | 3,173,687 | 3,228,231 | 4,439,389 | ||||
Total consolidated gains attributable to shareholders of the listed company | 2,720,887 | 2,851,796 | 2,959,463 | 4,118,278 | ||||
Total consolidated gains attributable to Non-controlling interests | 316,998 | 321,891 | 268,768 | 321,111 |
Legal representative of the Company: Cai JianjiangPerson in charge of accounting function: Xiao FengPerson in charge of accounting department: Zhan Zhong
Income Statement of the Parent Company
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 | 21,206,303 | 19,842,160 | 56,040,674 | 52,335,145 | ||||
Less: Operating cost | 16,052,793 | 15,006,593 | 45,711,385 | 42,936,494 | ||||
Business taxes and other levies | 24,319 | 29,139 | 68,637 | 97,432 | ||||
Selling expenses | 1,493,473 | 1,446,421 | 4,292,309 | 4,122,034 | ||||
Administrative expenses | 442,985 | 430,031 | 1,253,562 | 1,234,608 | ||||
Finance expenses | 599,041 | 172,937 | 2,212,885 | 197,245 | ||||
Impairment loss of assets | 5,482 | 18,242 | ||||||
Add: Gains from changes in fair value (loss is represented by "-"sign) | 71 | 1,470 | ||||||
Investment income (loss is represented by "-" sign) | 184,488 | 219,015 | 375,235 | 449,087 | ||||
Including: Gains arising from investments in associated companies andjoint ventures | 182,350 | 219,015 | 250,687 | 330,312 | ||||
II. Profit from operations (loss is represented by "-" sign) | 2,778,180 | 2,976,125 | 2,871,649 | 4,179,647 | ||||
Add: Non-operating income | 138,085 | 44,337 | 629,585 | 231,683 | ||||
Less: Non-operating expenses | 33,635 | 11,779 | 80,204 | 36,189 | ||||
Including: Loss arising from disposal of non-current assets | 30,690 | 5,118 | 68,069 | 14,772 | ||||
III. Total profit (total loss is represented by "-" sign) | 2,882,630 | 3,008,683 | 3,421,030 | 4,375,141 | ||||
Less: Income tax expenses | 656,903 | 636,375 | 732,341 | 896,210 | ||||
IV. Net profit (net loss is represented by "-" sign) | 2,225,727 | 2,372,308 | 2,688,689 | 3,478,931 | ||||
V. Earnings per share: | ||||||||
(I) Basic (RMB) | ||||||||
(II) Diluted (RMB) | ||||||||
VI. Other consolidated gains | 24,806 | 25,903 | 89 | |||||
VII. Total consolidated gains | 2,250,533 | 2,372,308 | 2,714,592 | 3,479,020 |
Legal representative of the Company: Cai JianjiangPerson in charge of accounting function: Xiao FengPerson in charge of accounting department: Zhan Zhong
Consolidated Cash Flow StatementJanuary to September 2014
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 | 82,863,244 | 77,950,954 | ||
Net increase in deposits from clients and placements from other banks | ||||
Net increase in borrowings from central bank | ||||
Net increase in contributions made to other financial institutions | ||||
Cash received from premiums of original insurance contracts | ||||
Net cash receipt from reinsurance operations | ||||
Net increase in reserve of the insured and investment | ||||
Net increase in disposal of held-for-trading financial assets | ||||
Cash received from interests, fees and commission | ||||
Net increase in contributions received | ||||
Net increase in cash from repurchase operations | ||||
Refund of tax and levy | 16,795 | 12,300 | ||
Other cash received relating to operating activities | 2,321,067 | 1,510,584 | ||
Subtotal of cash inflows of operating activities | 85,201,106 | 79,473,838 | ||
Cash paid for goods purchased and services received | 49,285,841 | 46,067,549 | ||
Net increase in loans and advances to clients | ||||
Net increase in deposits in central bank and to other banks | ||||
Cash paid in respect of claims under original insurance contracts | ||||
Cash paid for interests, fees and commission | ||||
Cash paid for bonus paid on insurance policy | ||||
Cash paid to or on behalf of employees | 11,566,230 | 9,739,148 | ||
Tax and levies paid | 2,927,019 | 2,433,170 | ||
Other cash paid relating to operating activities | 6,692,236 | 6,626,333 | ||
Subtotal of cash outflows from operating activities | 70,471,326 | 64,866,200 | ||
Net cash flows from operating activities | 14,729,780 | 14,607,638 | ||
II. Cash flows from investment activities: | ||||
Cash received from sales and redemption of investments | ||||
Cash received from investment income | 334,851 | 216,825 | ||
Net cash proceeds from disposal of fixed assets, intangible assets and other long-term assets | 1,571,984 | 975,168 | ||
Net cash proceeds from disposal of subsidiaries and other business units | ||||
Other cash received relating to investment activities | 875,087 | 429,771 | ||
Subtotal of cash inflows from investment activities | 2,781,922 | 1,621,764 | ||
Cash paid for purchase of fixed assets, intangible assets and other long-term assets | 10,262,602 | 15,668,864 | ||
Cash paid for investments | 10,403 |
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) | ||
Net increase in secured loans | ||||
Net cash payments for acquisition of subsidiaries and other business units | ||||
Other cash paid relating to investment activities | 44,354 | 124,827 | ||
Subtotal of cash outflows from investment activities | 10,306,956 | 15,804,094 | ||
Net cash flows from investment activities | -7,525,034 | -14,182,330 | ||
III. Cash flows from financing activities: | ||||
Cash received from capital injection | 1,044,449 | |||
Including: Cash received from capital injection of minority shareholders in subsidiaries | ||||
Cash received from borrowings | 31,163,598 | 24,271,543 | ||
Cash received from issue of debentures | 10,000,000 | |||
Other cash received relating to financing activities | ||||
Subtotal of cash inflows from financing activities | 31,163,598 | 35,315,992 | ||
Cash paid for repayment of borrowings | 36,224,773 | 23,904,226 | ||
Cash paid for distribution of dividends, profits or payment of interest expenses | 2,968,713 | 2,707,301 | ||
Including: Dividends and profit paid to minority shareholders by subsidiaries | 117,037 | 114,998 | ||
Other cash paid relating to financing activities | 3,482,801 | 2,996,558 | ||
Subtotal of cash outflows from financing activities | 42,676,287 | 29,608,085 | ||
Net cash flows from financing activities | -11,512,689 | 5,707,907 | ||
IV. Effect of exchange rate changes on cash and cash equivalents | 16,226 | -142,022 | ||
V. Net increase in cash and cash equivalents | -4,291,717 | 5,991,193 | ||
Add: Balance of cash and cash equivalents as at the beginning of the period | 14,761,830 | 11,787,943 | ||
VI. Balance of cash and cash equivalents as at the end of the period | 10,470,113 | 17,779,136 |
Legal representative of the Company: Cai JianjiangPerson in charge of accounting function: Xiao FengPerson in charge of accounting department: Zhan Zhong
Cash Flow Statement of the Parent CompanyJanuary to September 2014
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 | 58,058,101 | 55,448,326 | ||
Refund of tax and levy | 4,965 | 4,805 | ||
Other cash received relating to operating activities | 1,819,260 | 1,214,673 | ||
Subtotal of cash inflows from operating activities | 59,882,326 | 56,667,804 | ||
Cash paid for goods purchased and services received | 35,997,536 | 33,290,008 | ||
Cash paid to and on behalf of employees | 6,476,507 | 5,398,547 | ||
Taxes and levies paid | 2,023,452 | 1,351,502 | ||
Other cash paid relating to operating activities | 5,204,011 | 4,752,123 | ||
Subtotal of cash outflows from operating activities | 49,701,506 | 44,792,180 | ||
Net cash flows from operating activities | 10,180,820 | 11,875,624 | ||
II. Cash flows from investment activities: | ||||
Cash received from sales and redemption of investments | ||||
Cash received from investment income | 227,835 | 236,066 | ||
Net cash proceeds from disposal of fixed assets, intangible assets and other long-term assets | 924,903 | 261,589 | ||
Net cash proceeds from disposal of subsidiaries and other business units | ||||
Other cash received relating to investment activities | 788,479 | 87,940 | ||
Subtotal of cash inflows from investment activities | 1,941,217 | 585,595 | ||
Cash paid for purchase of fixed assets, intangible assets and other long-term assets | 4,928,332 | 10,428,323 | ||
Cash paid for investments | 9,403 | |||
Net cash payments for acquisition of subsidiaries and other business units | 431,743 | 147,824 | ||
Other cash paid relating to investment activities | 1,023,819 | 66,762 | ||
Subtotal of cash outflows from investment activities | 6,383,894 | 10,652,312 | ||
Net cash flows from investment activities | -4,442,677 | -10,066,717 | ||
III. Cash flows from financing activities: | ||||
Cash received from capital injection | 1,044,449 | |||
Cash received from borrowings | 20,076,997 | 13,348,903 | ||
Cash received from issue of debentures | 10,000,000 | |||
Other cash received relating to financing activities | ||||
Subtotal of cash inflows from financing activities | 20,076,997 | 24,393,352 | ||
Cash paid for repayment of borrowings | 23,165,199 | 16,535,304 | ||
Cash paid for distribution of dividends, profits or payment of interest expenses | 2,115,306 | 1,799,926 | ||
Other cash paid relating to financing activities | 2,716,087 | 2,680,608 |
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) | ||
Subtotal of cash outflows from financing activities | 27,996,592 | 21,015,838 | ||
Net cash flows from financing activities | -7,919,595 | 3,377,514 | ||
IV. Effect of exchange rate changes on cash and cash equivalents | -3,940 | -22,047 | ||
V. Net increase in cash and cash equivalents | -2,185,392 | 5,164,374 | ||
Add: Balance of cash and cash equivalents as at the beginning of the period | 5,924,189 | 3,900,178 | ||
VI. Balance of cash and cash equivalents as at the end of the period | 3,738,797 | 9,064,552 |
Legal representative of the Company: Cai JianjiangPerson in charge of accounting function: Xiao FengPerson in charge of accounting department: Zhan Zhong
4.2 Audit report
If the quarterly report is audited by the Certified Public Accountant, the appendix should disclose the text of the audit report.
□ Applicable √ Not applicable
By order of the BoardAir China LimitedRao Xinyu Tam Shuit MuiJoint Company Secretaries |
Beijing, the PRC, 28 October 2014
As at the date of this announcement, the directors of the Company are Mr. Cai Jianjiang, Ms. Wang Yinxiang, Mr. Cao Jianxiong, Mr. Feng Gang, Mr. John Robert Slosar, Mr. Ian Sai Cheung Shiu, Mr. Song Zhiyong, Mr. Fan Cheng, Mr. Fu Yang*, Mr. Yang Yuzhong*, Mr. Pan Xiaojiang* and Mr. Simon To Chi Keung*.
* Independent non-executive Director of the Company
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