TIDMAIRC
RNS Number : 1914R
Air China Ld
03 November 2021
Hong Kong Exchanges and Clearing Limited and The Stock Exchange
of Hong Kong Limited take no responsibility for the contents of
this announcement, make no representation as to its accuracy or
completeness and expressly disclaim any liability whatsoever for
any loss howsoever arising from or in reliance upon the whole or
any part of the contents of this announcement.
AIR CHINA LIMITED
(a joint stock limited company incorporated in the People's
Republic of China with limited liability)
(Stock Code: 00753)
THIRD QUARTERLY REPORT 2021
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", the Company together with its subsidiaries, the "Group")
held a Board meeting on 29 October 2021 and passed the resolution
approving the third quarterly report 2021 (the "Quarterly Report")
of the Company for the three months ended 30 September 2021 (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 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. The legal representative of the Company, person in charge
of accounting function and person in charge of accounting
department (accounting superintendent) hereby guarantee that the
financial statements set out in the Quarterly Report are true,
accurate and complete.
1.3. The third quarterly report of the Company is unaudited.
II. BASIC INFORMATION OF THE COMPANY
2.1. Major accounting data and financial indicators
Unit: RMB'000
Increase/decrease
for the period
from the beginning
Increase/decrease of the year
of the Reporting to
Period as For the the end of
compared to period the Reporting
the corresponding from the Period as
The Reporting period of beginning compared to
Items Period the of the the corresponding
previous year year period of
(%) to the
the end of previous year
the (%)
Reporting
Period
Revenue 19,793,622 5.24 57,457,425 18.58
Net profit
attributable
to shareholders
of
the listed
company -3,535,851 427.17 -10,321,667 2.07
Net profit
attributable
to shareholders
of
the listed
company
after deducting
non-recurring
profits and
losses -3,653,470 388.49 -10,573,863 2.22
Net cash flows
from
operating
activities N/A N/A 10,151,293 668.84
Basic earnings
per
share (RMB per
share) -0.26 427.17 -0.75 1.35
Diluted earnings
per N/A N/A N/A N/A
share (RMB per
share)
Weighted average
return Decreased Decreased
on net assets by 4.25 percentage by 2.62 percentage
(%) -5.07 points -14.18 points
Increase/decrease
at the end
of the Reporting
Period as
At the end compared to
of the At the end of the previous the end of
Reporting year the previous
Period year (%)
Total assets 287,445,792 284,070,710 1.19
Owners' equity
attributable
to shareholders
of
the listed
company 67,991,228 77,582,421 -12.36
2.2. Non-recurring profits and losses items and amounts
Unit: RMB'000
Amounts for
the period
from the beginning
of the year
Amounts for to the end
Items the Reporting of the Reporting
Period Period
Gains or losses on disposal of non-current
assets (including write-offs of asset
impairment provision) 19,037 19,806
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) 107,554 269,002
Reversal of provision for impairment of
receivables which are individually tested
for impairment 100,383 101,458
Other non-operating income and expenses
not covered above -8,506 38,991
Less: Effect of income tax 27,828 78,934
Effect of non-controlling shareholders'
interests (after taxation) 73,021 98,127
Total 117,619 252,196
Explanation of non-recurring profits and losses items listed in
the "Interpretative
Announcement for Information Disclosure of Companies That Issue
Securities to the Public No.1 - Non-recurring Profits and Losses" (
1 ) which are defined as recurring profits and losses items
Applicable Not applicable
2.3. Changes of major accounting data and financial indicators and reasons for changes
Applicable Not applicable
Percentage
Items of change (%) Main reason
Net profit attributable 427.17 Mainly due to the combined effects
to shareholders of of the sporadic outbreak of COVID-19
the listed company pandemic, the rising aviation
for the Reporting fuel price and the fluctuation
Period in exchange rate
Net profit attributable 388.49 Mainly due to the combined effects
to shareholders of of the sporadic outbreak of COVID-19
the listed company pandemic, the rising aviation
after deducting non-recurring fuel price and the fluctuation
profits and losses in exchange rate
for the Reporting
Period
Basic earnings per 427.17 Mainly due to the combined effects
share for the Reporting of the sporadic outbreak of COVID-19
Period (RMB per share) pandemic, the rising aviation
fuel price and the fluctuation
in exchange rate
Net cash flows from 668.84 Mainly due to the impact of the
operating activities year-on- year increase in sales
for the period from revenue and the decrease in returned
the beginning of the tickets
year to the end of
the Reporting Period
The Group will firmly establish the concept of "Safety First",
implement safety responsibilities, stringently adhere to rules and
regulations as well as manage and control various types of risks,
thereby resolutely upholding the safety standards. Moreover, the
organizational leadership in respect of the pandemic prevention and
control will be further strengthened and the regularized prevention
and control measures will be strictly implemented. The Group will
continuously strengthen market research and judgement, keep abreast
of the changes in demand, dynamically adjust the deployment of
transport capacity and implement strict cost control, all in an
effort to reduce the impact of the pandemic on the operation.
2.4. Total number of shareholders, particulars of the top 10
shareholders and the top 10 shareholders of tradable shares (or
shares not subject to selling restrictions) as at the end of the
Reporting Period
Total number of shareholders of ordinary shares and number of
shareholders of preference shares with restored voting rights as
well as particulars of the top 10 shareholders
Unit: share
http://www.rns-pdf.londonstockexchange.com/rns/1914R_1-2021-11-3.pdf
Particulars of the top 10 shareholders not subject to selling
restrictions
Number of tradable Class and number of shares
shares held
not subject
to selling
restrictions
Name of shareholder Class of shares Number
China National Aviation Holding RMB ordinary
Corporation Limited 5,952,236,697 shares 5,952,236,697
Overseas listed
Cathay Pacific Airways Limited 2,633,725,455 foreign shares 2,633,725,455
Overseas listed
HKSCC NOMINEES LIMITED 1,688,048,365 foreign shares 1,688,048,365
China National Aviation Corporation RMB ordinary
(Group) Limited 1,556,334,920 shares 1,332,482,920
Overseas listed
foreign shares 223,852,000
China National Aviation Fuel RMB ordinary
Group Corporation 462,583,102 shares 462,583,102
China Securities Finance Corporation RMB ordinary
Limited 311,302,365 shares 311,302,365
Hong Kong Securities Clearing RMB ordinary
Company Ltd. 79,930,038 shares 79,930,038
Agricultural Bank of China
Limited - GF Balanced Preferred
Hybrid Securities Investment
Fund
( - RMB ordinary
) 72,954,329 shares 72,954,329
China Construction Bank Corporation
-
GF Value Leading Hybrid Securities
Investment Fund ( - RMB ordinary
) 37,046,485 shares 37,046,485
Industrial Bank Co., Ltd. -
GF Stable Preferred Six-month
Hybrid Securities Investment
Fund
( - RMB ordinary
) 36,480,514 shares 36,480,514
Explanation on connected relationship China National Aviation Corporation
or action in concert among (Group) Limited is a wholly-owned
the above shareholders 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 on the top 10 shareholders Nil
and the top 10 shareholders
not subject to selling restrictions
involved in margin financing
and securities lending as well
as margin and securities refinancing
business
(if any)
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 1,688,048,365 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) ( ( [2009]94 ))
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.
III. OTHER REMINDERS
Other significant information in relation to the operation of
the Company during the Reporting Period that needs to be brought to
the attention of investors
Applicable Not applicable
IV. QUARTERLY FINANCIAL STATEMENTS
Types of audit opinion
Applicable Not applicable
CONSOLIDATED BALANCE SHEET
30 September 2021
Prepared by Air China Limited
Unit: RMB'000 (Unaudited)
30 September 31 December
Items 2021 2020
CURRENT ASSETS:
Cash and bank balance 9,482,681 6,575,243
Provisions on payables
Contributions made
Financial assets held-for-trading
Derivative financial assets
Bills receivable 5,748 6,593
Accounts receivable 2,709,506 2,942,799
Receivables financing
Prepayments 496,939 421,237
Premium receivable
Receivables on reinsurance
Provisions for reinsurance contracts
Other receivables 3,166,001 3,491,233
Including: Interest receivable
Dividend receivable
Purchase of financial assets resold
Inventories 2,406,238 1,853,990
Contract assets
Held-for-sale assets
Non-current assets due within a year
Other current assets 4,197,760 4,444,806
Total current assets 22,464,873 19,735,901
30 September 31 December
Items 2021 2020
NON-CURRENT ASSETS:
Loans and advances
Debt investments
Other debt investments 1,329,055 1,344,829
Long-term receivables 618,907 621,398
Long-term equity investments 11,479,800 12,379,614
Investments in other equity instruments 197,017 235,223
Other non-current financial assets
Investment properties 130,353 138,688
Fixed assets 86,477,618 87,717,717
Construction in progress 33,675,777 38,138,866
Biological assets for production
Oil and gas assets
Right-of-use assets 116,572,791 112,074,148
Intangible assets 3,545,707 3,597,206
Development expenses
Goodwill 1,102,185 1,102,185
Long-term deferred expenses 279,183 292,972
Deferred income tax assets 9,572,526 6,691,963
Other non-current assets
Total non-current assets 264,980,919 264,334,809
Total assets 287,445,792 284,070,710
30 September 31 December
Items 2021 2020
CURRENT LIABILITIES:
Short-term loans 22,306,828 29,327,087
Short-term financing bonds payable 2,530,144 510,810
Borrowings from central bank
Contributions received
Financial liabilities held-for-trading
Derivative financial liabilities
Bills payable - 62,570
Accounts payables 14,896,695 12,740,096
Air traffic liabilities 2,254,283 2,002,649
Receipts in advance
Contract liabilities 1,523,522 1,280,102
Sale of financial assets repurchased
Deposits from clients and placements from
other banks
Brokerage payable
Underwriting fees payable
Employee compensations payable 2,543,024 2,608,944
Taxes payable 229,711 206,547
Other payables 13,043,968 9,600,645
Including: Interest payable
Dividend payable
Fees and commissions payable
Amounts payable on reinsurance
Held-for-sale liabilities
Non-current liabilities due within a year 22,562,294 22,054,735
Other current liabilities
Total current liabilities 81,890,469 80,394,185
30 September 31 December
Items 2021 2020
NON-CURRENT LIABILITIES:
Reserves on insurance contracts
Long-term loans 35,079,045 21,140,699
Debentures payable 9,499,132 10,498,398
Including: Preference shares
Perpetual bonds
Lease liabilities 76,218,303 76,098,678
Long-term payables 5,450,951 5,783,825
Long-term employee compensation payables 225,344 229,332
Accrued liabilities 3,045,899 3,023,109
Deferred income 549,103 488,791
Deferred income tax liabilities 329,728 334,720
Other non-current liabilities 1,971,922 2,264,843
Total non-current liabilities 132,369,427 119,862,395
Total liabilities 214,259,896 200,256,580
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 26,270,841 26,270,841
Less: Treasury shares
Other comprehensive income -137,476 -871,587
Including: Foreign currency translation
differences -2,435,937 -2,311,036
Special reserves
Surplus reserves 11,564,287 11,564,287
General risk provisions 110,628 110,628
Retained earnings 15,658,133 25,983,437
Total owners' equity (or shareholders'
equity) attributable to equity shareholders
of the parent company 67,991,228 77,582,421
Non-controlling interests 5,194,668 6,231,709
Total owners' equity (or shareholders'
equity) 73,185,896 83,814,130
Total liabilities and owners' equity (or
shareholders' equity) 287,445,792 284,070,710
Person in charge of the Company: Mr. Song Zhiyong
Person in charge of accounting function: Mr. Xiao Feng
Person in charge of accounting department: Mr. Zhan Zhong
CONSOLIDATED INCOME STATEMENT
January to September 2021
Prepared by Air China Limited
Unit: RMB'000 (Unaudited)
First three First three
quarters of quarters of
Items 2021 (January 2020 (January
to September) to September)
I. Total revenue from operations 57,457,425 48,454,050
Including: Operating income
Interest income Premium earned
Fees and commission income 57,457,425 48,454,050
II. Total operating cost 73,584,421 61,471,267
Including: Operating costs 63,149,708 52,945,632
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 188,691 153,033
Selling expenses 3,316,364 2,967,568
General and administrative expenses 3,244,237 2,737,019
R&D expenses 92,814 223,392
Finance expenses 3,592,607 2,444,623
Including: Interest expenses 4,052,386 3,830,249
Interest income 63,887 107,760
Add: Other income 2,919,449 2,989,572
Investment income (loss is represented by
"-" sign) -1,592,710 -3,666,326
Including: Investment income from
associates
and joint ventures -1,648,727 -3,713,229
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) 100,850 70,165
Impairment loss of assets (loss is
represented
by "-" sign) -5,027 -137
Gains from disposal of assets (loss is
represented
by "-" sign) 25,796 29,079
First three First three
quarters of quarters of
Items 2021 (January 2020 (January
to September) to September)
III. Profit from operations (loss is represented
by "-" sign) -14,678,638 -13,594,864
Add: Non-operating income 88,974 132,287
Less: Non-operating expenses 55,917 106,516
IV. Total profit (total loss is represented
by "-" sign) -14,645,581 -13,569,093
Less: Income tax expenses -2,849,163 -2,107,276
V. Net profit (net loss is represented by
"-" sign) -11,796,418 -11,461,817
(I) Classified by continuity of operations
1. Net profit from continuing operations (net
loss is represented by "-" sign) -11,796,418 -11,461,817
2. Net profit from discontinued operation
(net loss is represented by "-" sign)
(II) Classified by ownership
1. Net profits attributable to shareholders
of the parent company (net loss is represented
by "-" sign) -10,321,667 -10,111,847
2. Profit or loss attributable to non-controlling
interests (net loss is represented by "-"
sign) -1,474,751 -1,349,970
VI. Other comprehensive income after taxation,
net 702,188 -1,403,285
(I) Other comprehensive income after taxation
attributable to shareholders of the parent
company, net 730,474 -1,386,552
1.Other comprehensive income that cannot be
subsequently reclassified to profit or loss -20,066 -123,665
(1) Changes arising on remeasurement of defined
benefit plans -1,594 -3,324
(2) Other comprehensive income accounted for
using the equity method that cannot be
reclassified
to profit or loss -3,858 -103,423
(3) Change in fair value of investments in
other equity instruments -14,614 -16,918
(4) Change in fair value of own credit risk
of the Company
First three First three
quarters of quarters of
Items 2021 (January 2020 (January
to September) to September)
2.Other comprehensive income that will be
reclassified to profit or loss 750,540 -1,262,887
(1) Other comprehensive income accounted for
using the equity method that may be
reclassified
to profit or loss 879,233 -885,536
(2) Change in fair value of other debt
investments -388 -8,011
(3) Amount of financial assets reclassified
into other comprehensive income
(4) Provisions for credit impairment of other
debt investments -3,404 17,511
(5) Reserve for cash flow hedging
(6) Exchange difference on translation of
financial statements in foreign currency -124,901 -386,851
(7) Others
(II) Other comprehensive income after taxation
attributable to non-controlling interests,
net -28,286 -16,733
VII. Total comprehensive income -11,094,230 -12,865,102
(I) Total comprehensive income attributable
to shareholders of the parent company -9,591,193 -11,498,399
(II) Total comprehensive income attributable
to non-controlling interests -1,503,037 -1,366,703
VIII. Earnings per share:
(I) Basic earnings per share -RMB per share -0.75 -0.74
(II) Diluted earnings per share -RMB per share 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.
Person in charge of the Company: Mr. Song Zhiyong
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 2021
Prepared by Air China Limited
Unit: RMB'000 (Unaudited)
First three First three
quarters of quarters of
2021 (January 2020 (January
Items to September) to September)
I. Cash flows from operating activities:
Cash received from sales of goods and provision
of services 61,020,442 44,861,340
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 13,275 24,206
Other cash received relating to operating
activities 6,962,870 4,873,350
Subtotal of cash inflows of operating activities 67,996,587 49,758,896
Cash paid for goods purchased and services
received 34,568,979 30,033,412
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 17,412,815 16,862,435
Taxes and levies paid 1,318,399 1,495,050
Other cash paid relating to operating activities 4,545,101 3,152,563
Subtotal of cash outflows from operating
activities 57,845,294 51,543,460
Net cash flows from operating activities 10,151,293 -1,784,564
First three First three
quarters of quarters of
2021 (January 2020 (January
Items to September) to September)
II. Cash flows from investing activities:
Cash received from sale and redemption of
investments 1,681,058
Recovery of the secured bank deposits 25,579 1,713
Cash received from investment income 27,120 17,350
Net cash proceeds from disposal of fixed assets,
intangible assets and other long-term assets 105,047 101,728
Net cash proceeds from disposal of subsidiaries
and other business units
Other cash received relating to investing
activities 63,887 107,760
Subtotal of cash inflows from investing activities 1,902,691 228,551
Cash paid for purchase and construction of
fixed assets, intangible assets and other
long-term assets 3,051,141 8,836,759
Cash paid for investments 4,322,061
Net increase in secured loans
Net cash payments for acquisition of subsidiaries
and other business units
Increase in secured bank deposits 14,761 1,633
Other cash paid relating to investing activities
Subtotal of cash outflows from investing
activities 3,065,902 13,160,453
Net cash flows from investing activities -1,163,211 -12,931,902
First three First three
quarters of quarters of
2021 (January 2020 (January
Items to September) to September)
III. Cash flows from financing activities:
Cash received from capital injection
Including: Cash received from capital injection
of minority shareholders in subsidiaries
Cash received from issuance of debentures 6,300,000 29,300,000
Cash received from borrowings 36,016,349 42,857,458
Cash received from capital injection 490,148
Other cash received relating to financing
activities
Subtotal of cash inflows from financing activities 42,806,497 72,157,458
Cash paid for repayment of borrowings 27,741,688 23,350,268
Cash paid for repayment of debentures 5,700,000 19,100,000
Cash paid for distribution of dividends, profits
or payment of interest expenses 4,184,910 4,447,319
Including: Dividends and profits paid to minority
shareholders by subsidiaries 24,152 16,477
Cash paid for leases 11,211,366 10,454,908
Other cash paid relating to financing activities
Subtotal of cash outflows from financing
activities 48,837,964 57,352,495
Net cash flows from financing activities - 6,031,467 14,804,963
IV. Effect of exchange rate changes on cash
and cash equivalents -26,438 -28,661
V. Net increase in cash and cash equivalents 2,930,177 59,836
Add: Balance of cash and cash equivalents
as at the beginning of the Period 5,837,998 8,935,282
VI. Balance of cash and cash equivalents as
at the end of the Period 8,768,175 8,995,118
Person in charge of the Company: Mr. Song Zhiyong
Person in charge of accounting function: Mr. Xiao Feng
Person in charge of accounting department: Mr. Zhan Zhong
Particulars in relation to adjustments made to the financial
statements as at the beginning
of the year for the initial implementation of New Lease Standard
since 2021
Applicable Not applicable
By Order of the Board
Air China Limited
Huang Bin Huen Ho Yin
Joint Company Secretaries
Beijing, the PRC, 29 October 2021
As at the date of this announcement, the directors of the
Company are Mr. Song Zhiyong, Mr. Ma Chongxian, Mr. Feng Gang, Mr.
Patrick Healy, Mr. Xue Yasong, Mr. Duan Hongyi*, Mr. Stanley Hui
Hon-chung* and Mr. Li Dajin*.
* Independent non-executive director of the Company
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