3rd Quarter Results

RNS Number : 4776B

Air China Ld

28 October 2009

 

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.

(a joint stock limited company incorporated in the People's Republic of China with limited liability)

(Stock Code: 753)

THIRD QUARTERLY REPORT 2009

This announcement is made pursuant to Rule 13.09 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 27 October 2009 and the Board passed, inter alia, the resolution approving the quarterly report for the third quarter of 2009 prepared in accordance with the PRC Accounting Rules and Regulations.

§1    IMPORTANT NOTICE 

1.1    The Board, the Supervisory Committee, as well as the directors, supervisors and senior management of the Company hereby warrant that there are no false representations, misleading statements or material omissions in this report, and jointly and severally accept full responsibility for the truthfulness, accuracy and completeness of the contents of this quarterly report.

1.2    The Chairman of the Company Mr. Kong Dong was unable to attend the Board meeting due to a business engagement and appointed Vice Chairman Ms. Wang Yinxiang to attend and vote on his behalf. Director Mr. Christopher Dale Pratt was unable to attend the Board meeting due to a business engagement and appointed Director Mr. Chen Nan Lok, Philip to attend and vote on his behalf. Independent Director Mr. Hu Hung Lick, Henry was unable to attend the Board meeting due to a business engagement and appointed Independent Director Mr. Zhang Ke to attend and vote on his behalf. Independent Director Mr. Jia Kang was unable to attend the Board meeting due to a business engagement and appointed Independent Director Mr. Fu Yang to attend and vote on his behalf.

1.3    This Third Quarterly Financial Report of the Company is unaudited.

1.4    The Legal representative of the Company Mr. Kong Dong, Person in charge of accounting function Mr. Fan Cheng, and Person in charge of accounting department Mr. Li Youqiang hereby jointly declare that the financial statements set out in this quarterly report is true and complete.

§2    BASIC INFORMATION OF THE COMPANY

2.1    Major accounting data and financial ratios

			In RMB
	At the end of the reporting period	At the end of pervious year	Increase/ decrease at the end of the reporting period as compared to the end of the pervious year
			(%)
Total assets (RMB'000)	101,959,366	98,897,743	3.10
Owner's equity (or shareholders'  equity)	23,605,019	19,773,890	19.37
Net asset per share attributable to  shareholders of the listed  company (RMB)	1.99	1.67	19.16

	From the beginning of the year to the end of the reporting period (January to September)	Increase/ Decrease over the corresponding period of previous year
		(%)
Net cash flow from operating  activities (RMB'000)	4,753,513	9.97
Net cash flow from operating  activities per share (RMB)	0.40	11.11

	Reporting period (July to September)	From the beginning of the year to the end of the reporting period (January to September)	Increase/ decrease of this reporting period as compared to the corresponding period of previous year
			(%)
Net profit attributable to  shareholders of the listed  company (RMB'000)	885,298	3,810,947	144.90
Basic earnings per share (RMB)	0.07	0.32	141.18
Basic earnings per share after  deducting non-recurring gains  and losses (RMB)	0.04	0.06	134.56
Diluted earnings per share (RMB)	N/A	N/A	N/A
Fully diluted return on net assets  (%)	3.75	16.14	Increased by 10.51 percentage points
Fully diluted return on net assets  after deducting non-recurring  gains and losses (%)	1.83	3.62	Increased by 1.88 percentage points

Items and data deducting non-recurring gains and losses

Non-recurring gain and loss items	From the beginning of the year to the end of the reporting period (January to September)
	(RMB'000)
Gains and losses from disposal of non-current assets	16,188
Government grants (except for the government grants which  are closely related to the Company's normal operating business  and qualified under national policy to receive certain standard  amounts and quantities) accounted for as gains and losses for  the period	962,297
Gain/(loss) from changes in fair value of trading financial assets/  liabilities and investing income from disposal of trading  financial assets/liabilities and available-for-sale financial assets  (except for hedging activities related to the Company's normal  operating business)	2,074,712
Other non-operating income and expenses apart from  those stated above	13,326
Effect on minority interest	-5,795
Effect of income tax	34,656
Total	3,095,384

2.2    Total number of shareholders and top 10 holders of listed shares not subject to trading moratorium as at the end of the reporting period

	Unit: Share
Total number of shareholders at  the end of the reporting period	430,104 (among which 5,953 of H Shares)

Particulars of the top 10 holders of listed shares not subject 

to trading moratorium

Name of shareholder (full name)	Number of listed Shares not subject to trading moratorium held as at period end	Class of Shares
China National Aviation Holding Company	4,949,066,567	RMB ordinary shares
Cathay Pacific Airways Limited	2,217,617,455	Overseas listed  foreign shares
HKSCC NOMINEES LIMITED	2,084,087,904	Overseas listed  foreign shares
China National Aviation Corporation  (Group) Limited	1,380,482,920	RMB ordinary shares
	66,852,000	Overseas listed  foreign shares
Sinotrans Air Transportation Development  Co., Ltd.	80,000,000	RMB ordinary shares
China Construction Bank - Yin Hua Core  Value Equity Fund	40,002,969	RMB ordinary shares
Industrial and Commercial Bank of  China - JianXin Optimal Allocation  Mixed Investment Fund	24,071,625	RMB ordinary shares
China Life Insurance Company Limited  - Dividend Payout - Individual Dividend  Payout - 005L - FH002 Shanghai	18,106,136	RMB ordinary shares
Bank of Communications - Rongtong  Industrial Prosperity Fund	16,491,297	RMB ordinary shares
Industrial and Commercial Bank of China  - China Southern Component Selected Stock  Securities Investment Fund	16,126,016	RMB ordinary shares

§3    SIGNIFICANT EVENTS

3.1    Significant changes of the principal accounting statements and financial indicators and reasons thereof

☑ Applicable    ☐Not applicable

Item	Change in %	Reason for the change
Trading financial liabilities	-61.43%	Decrease in the loss of  fair value of the  outstanding financial  derivatives contracts as  at 30 September 2009.
Debentures payable	200%	Due to the issue of  RMB6 billion medium  term notes in the  first half of year 2009.
Finance expenses	240.8%	As a result of exchange  rate changes, exchange  gains of January to  September 2009 dropped  by RMB2 billion  compared to the  corresponding period  of last year.
Gains from changes  in fair value	439.42%	As a result of increase  in international fuel  prices, gain on changes  in fair value of  financial derivatives is  RMB2.075 billion, of  which RMB2.015 billion  is the gain on changes in  fair value of the fuel  derivative contracts  (the recovery in fair  value of RMB4.664  billion and the decrease  in fair value of  RMB2.649 billion  resulted from the  settlement of financial  derivatives contracts).
Item	Change in %	Reason for the change
Investment income	208.42%	Mainly due to  the increase in profits  of the associates of  air traffic business  as compared to the  corresponding period  of last year.
Non-operating income	351.73%	Recognition revenue of  RMB824 million from  the refund of CAAC  Infrastructure  Development Fund  mainly in the first half  of year 2009.

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, the shareholders and actual controller

☐Applicable    ☑ Not applicable

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 reasons therefore

☐ Applicable    ☑ Not applicable

Air China Limited

Legal representative: Kong Dong

27 October 2009

  §4    APPENDIX

4.1    Consolidated Balance Sheet

30 September 2009

Prepared by Air China Limited

Unit: RMB'000 (Unaudited)

Items	Balance at the end of the period	Balance at the beginning of the year
Items	Balance at the end of the period	Balance at the beginning of the year
CURRENT ASSETS:
Cash and bank balances	4,575,296	4,663,792
Provisions on payables
Contributions received
Trading financial assets		253,406
Bills receivable	1,516	1,604
Accounts receivable	2,450,979	2,074,178
Prepayments	312,577	309,945
Premium receivable
Receivables on reinsurance
Provisions for reinsurance contracts
Interests receivable
Dividends receivable
Other receivables	1,105,852	1,110,524
Purchase of financial assets resold
Inventories	839,729	812,941
Non-current assets due within a year
Other current assets
Total current assets	9,285,949	9,226,390

Items	Balance at the end of the period	Balance at the beginning of the year
Items	Balance at the end of the period	Balance at the beginning of the year
NON-CURRENT ASSETS:
Loans and advances
Available-for-sale financial assets
Held-to-maturity investment
Long-term receivables	269,711	231,586
Long-term equity investment	8,020,064	7,323,075
Investment property
Fixed assets	68,017,464	66,244,815
Construction in progress	11,757,754	10,887,225
Construction materials
Disposal of fixed assets
Biological assets for production
Oil and gas assets
Intangible assets	2,546,596	2,563,887
Development expenses
Goodwill	349,055	349,055
Long-term deferred expenses	125,427	141,601
Deferred income tax assets	1,587,346	1,930,109
Other non-current assets
Total non-current assets	92,673,417	89,671,353
Total assets	101,959,366	98,897,743

Items	Balance at the end of the period	Balance at the beginning of the year
Items	Balance at the end of the period	Balance at the beginning of the year
CURRENT LIABILITIES:
Short-term borrowings	7,193,487	9,379,700
Borrowings from central bank
Deposits from clients and placements   from other banks
Contributions made
Trading financial liabilities	2,980,381	7,727,918
Bills payable	1,333,819	1,493,815
Accounts payable	7,524,941	7,792,638
Domestic air traffic liabilities	978,343	744,804
International air traffic liabilities	1,564,822	1,517,530
Advances from customers	35,349	56,022
Sale of financial assets repurchased
Fees and commissions payable
Salaries and wages payable	201,062	163,918
Taxes payable	301,892	300,198
Interests payable	243,507	303,066
Dividend payable
Other payables	3,462,139	3,030,210
Amounts payable on reinsurance
Provisions on insurance contracts
Brokerage payable
Underwriting fees payable
Non-current liabilities due within a year	12,984,103	10,186,078
Other current liabilities
Total current liabilities	38,803,845	42,695,897
NON-CURRENT LIABILITIES:
Long-term borrowings	10,834,258	14,109,828
Debentures payable	9,000,000	3,000,000
Long-term payables	1,344,099	1,307,706
Obligations under finance leases	16,632,525	16,480,784
Specific payables
Estimated liabilities	91,444	112,754
Deferred income	1,009,541	689,232
Deferred income tax liabilities	189,745	214,000
Other non-current liabilities
Total non-current liabilities	39,101,612	35,914,304
Total liabilities	77,905,457	78,610,201

Items	Balance at the end of the period	Balance at the beginning of the year
Items	Balance at the end of the period	Balance at the beginning of the year
SHAREHOLDERS' EQUITY:
Equity	12,251,362	12,251,362
Capital surplus	11,709,845	11,676,739
Less: Treasury shares
Surplus reserves	1,563,914	1,563,914
General risk provisions
Profit available for appropriation	-296,656	-4,107,603
Foreign exchange translation reserve	-1,623,446	-1,610,522
Total equities attributable to owners   of the Company	23,605,019	19,773,890
Minority interests	448,890	513,652
Total shareholders' equity	24,053,909	20,287,542
Total liabilities and shareholders' equity	101,959,366	98,897,743

Legal representative of the Company: Kong Dong

Person in charge of accounting function: Fan Cheng

Person in charge of accounting department: Li Youqiang

Balance Sheet of the Company

30 September 2009

Prepared by Air China Limited

Unit: RMB'000 (Unaudited)

Items	Balance at the end of the period	Balance at the beginning of the year
Items	Balance at the end of the period	Balance at the beginning of the year
CURRENT ASSETS:
Cash and bank balances	1,616,715	1,511,221
Trading financial assets		253,406
Bills receivable	787	965
Accounts receivable	2,328,278	1,941,404
Prepayments	178,501	261,822
Interests receivable
Dividends receivable
Other receivables	1,240,957	1,422,428
Inventories	763,124	741,916
Non-current assets due within a year
Other current assets
Total current assets	6,128,362	6,133,162

Items	Balance at the end of the period	Balance at the beginning of the year
Items	Balance at the end of the period	Balance at the beginning of the year
NON-CURRENT ASSETS:
Available-for-sale financial assets
Held-to-maturity investment
Long-term receivables	200,931	166,690
Long-term equity investment	14,009,722	13,534,419
Investment property
Fixed assets	64,021,030	62,712,454
Construction in progress	11,124,993	10,072,643
Construction materials
Disposal of fixed assets
Biological assets for production
Oil and gas assets
Intangible assets	2,163,709	2,181,481
Development expenses
Goodwill
Long-term deferred expenses	118,744	133,707
Deferred income tax assets	1,545,174	1,890,000
Other non-current assets
Total non-current assets	93,184,303	90,691,394
Total assets	99,312,665	96,824,556
CURRENT LIABILITIES:
Short-term borrowings	7,033,870	9,201,444
Trading financial liabilities	2,980,381	7,727,918
Bills payable	731,882	1,493,815
Accounts payable	6,560,094	6,817,030
Domestic air traffic liabilities	976,215	739,247
International air traffic liabilities	1,435,720	1,411,075
Advances from customers	34,768	35,152
Salaries and wages payable	150,799	113,413
Taxes payable	287,397	290,579
Interests payable	235,895	301,088
Dividend payable
Other payables	2,801,929	2,402,427
Non-current liabilities due within a year	12,792,571	10,048,877
Other current liabilities
Total current liabilities	36,021,521	40,582,065

Items	Balance at the end of the period	Balance at the beginning of the year
Items	Balance at the end of the period	Balance at the beginning of the year
NON-CURRENT LIABILITIES:
Long-term borrowings	9,371,157	12,855,636
Debentures payable	9,000,000	3,000,000
Long-term payables	1,059,922	1,017,791
Obligations under finance leases	16,632,525	16,480,784
Specific payables
Estimated liabilities	91,445	112,754
Deferred income	995,421	681,001
Deferred income tax liabilities	180,000	214,000
Other non-current liabilities
Total non-current liabilities	37,330,470	34,361,966
Total liabilities	73,351,991	74,944,031
SHAREHOLDERS' EQUITY:
Equity	12,251,362	12,251,362
Capital surplus	14,331,111	14,334,111
Less: Treasury shares
Surplus reserves	1,554,324	1,554,324
Profit available for appropriation	-2,176,123	-6,259,272
Foreign exchange translation reserve
Total shareholders' equity	25,960,674	21,880,525
Total liabilities and shareholders' equity	99,312,665	96,824,556

Legal representative of the Company: Kong Dong

Person in charge of accounting function: Fan Cheng

Person in charge of accounting department: Li Youqiang

  4.2    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 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 previous reporting period  (January to September)
I.	Revenue from operations	14,054,335	13,872,973	36,459,360	39,539,498
	Including:    Operating income	14,054,335	13,872,973	36,459,360	39,539,498
	Interest income
	Premium earned
	Fees and commission income
II.	Total operating cost	13,489,300	15,093,752	35,940,774	40,105,297
	Including:    Operating costs	11,282,767	13,323,677	30,258,540	36,457,808
	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      surcharges	358,351	338,713	902,014	962,509
	Selling expenses	1,035,453	762,151	2,675,877	2,339,678
	Administrative expenses	442,989	356,632	1,127,805	1,029,935
	Finance expenses	369,740	302,789	976,538	-693,543
	Impairment loss of assets		9,790		8,910
	Add:    Gains from changes in fair value      (loss is represented by "-" sign)	553,634	-899,553	2,074,712	-611,245
	Investment income (loss is      represented by "-" sign)	149,142	-261,115	460,267	149,233
	Including: Gains arising from          investments in          associated companies          and joint ventures	149,156	-261,390	460,281	-327,848
	Exchange gains (loss is      represented by "-" sign)
III.	Profit from operations (loss is  represented by "-" sign)	1,267,811	-2,381,447	3,053,565	-1,027,811
	Add:    Non-operating income	50,901	75,803	1,003,745	222,202
	Less:    Non-operating expenses	3,511	7,016	11,934	142,124
	Including:    Net loss arising from      disposal of      non-current assets	1,370	1,683	5,618	20,643
IV.	Total profit (loss is represented by  "-" sign)	1,315,201	-2,312,660	4,045,376	-947,733
	Less: Income tax expenses	450,044	-292,701	315,544	-752
V.	Net profit (loss is represented by  "-" sign)	865,157	-2,019,959	3,729,832	-946,981
	Net profits attributable to owners  of Company	885,298	-1,971,531	3,810,947	-806,061
	Net profits or losses attributable to  minority interests	-20,141	-48,428	-81,115	-140,920
VI.	Earnings per share:
	(I) Basic	0.07	-0.17	0.32	-0.07
	(II) Diluted	N/A	N/A	N/A	N/A

Legal representative of the Company: Kong Dong

Person in charge of accounting function: Fan Cheng

Person in charge of accounting department: Li Youqiang

  Income Statement of the Company

Prepared by Air China Limited

Unit: RMB'000 (Unaudited)

Items		Amounts for the period (July to September)	Amounts for the Corresponding period of 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 previous reporting period (January to September)
I.	Revenue from operations	12,882,230	12,180,423	33,877,373	34,651,361
	Less:    Operating cost	10,253,905	11,715,439	27,479,107	31,760,140
	Business taxes and other      surcharges	341,480	313,917	870,432	885,730
	Selling expenses	980,165	728,606	2,570,606	2,215,763
	Administrative expenses	352,098	263,114	869,517	742,813
	Finance expenses	371,080	305,309	956,124	-606,507
	Impairment loss of assets
	Add:    Gains from changes in fair value      (loss is represented by "-"sign)	553,634	-904,034	2,074,712	-601,993
	Investment income (loss is      represented by "-" sign)	148,879	-16,485	235,096	18,304
	Including:    Investment income      from associates      and joint ventures	148,879	-16,486	235,096	18,246
II.	Profit from operations (loss is  represented by "-" sign)	1,286,015	-2,066,481	3,441,395	-930,267
	Add:    Non-operating income	45,224	62,254	969,481	205,493
	Less:    Non-operating expenses	3,420	6,851	9,993	141,522
	Including:    Net loss on      disposal of      non-current assets	1,289	1,559	3,712	20,510
III.	Total profit (loss is represented by  "-" sign)	1,327,819	-2,011,078	4,400,883	-866,296
	Less:    Income tax expenses	341,826	-310,262	310,826	-28,127
IV.	Net profit (loss is represented by  "-" sign)	985,993	-1,700,816	4,090,057	-838,169

Legal representative of the Company: Kong Dong

Person in charge of accounting function: Fan Cheng

Person in charge of accounting department: Li Youqiang

4.3    Consolidated Cash Flow Statement

January to September 2009

Prepared by Air China Limited

Unit: RMB (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 previous reporting period (January to September)
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 previous reporting period (January to September)
I.	Cash flows from operating activities:
	Cash received from sales of goods,  provision of services	35,634,387	39,023,445
	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 trading financial assets
	Cash received from interests, fees and commission
	Net increase in contributions
	Net increase in cash from repurchase operations
	Refund of tax and levy	41,314	36,747
	Other cash received relating to operating activities	1,670,621	1,005,724
	Subtotal of cash inflows of operating activities	37,346,322	40,065,916
	Cash paid for goods purchased, services rendered	21,205,921	26,439,750
	Net increase in loans and advances to clients
	Net increase in deposits to central bank  and to other banks
	Cash payment of claims under original  insurance contracts
	Cash payment of interests, fees and commission
	Cash payment of bonus paid to insurance policy
	Cash paid to or on behalf of employees	3,825,954	3,365,686
	Tax paid	1,562,484	2,678,664
	Other cash paid in relation to operating activities	5,998,450	3,259,388
	Subtotal of cash outflows of operating activities	32,592,809	35,743,488
	Net cash flows from operating activities	4,753,513	4,322,428
II.	Cash flows from investing activities:
	Cash received from investments
	Cash from investment income	14,880	418,832
	Net cash from disposal of fixed assets,  intangible assets and other long-term assets	213,377	928,165
	Net cash from disposal of subsidiaries and  other business units
	Other cash received from investing activities	2,383,381	722,983
	Subtotal of cash inflows of investment activities	2,611,638	2,069,980
	Cash paid to purchase of fixed assets, intangible  assets and other long-term assets	4,574,223	5,753,416
	Cash paid to investments	265,200	978,502
	Net increase in pledged loans
	Net cash from subsidiaries and other business  units
	Cash payments relating to other investments
	Subtotal of cash outflows of investment activities	4,839,423	6,731,918
	Net cash flows from investing activities	-2,227,785	-4,661,938
III.	Cash flows from financing activities:
	Cash received from investments
	Including: Cash received from investments of  minority shareholders through subsidiaries
	Cash received from borrowings	23,620,857	14,375,233
	Cash received from issue of debentures
	Other cash relating to financing activities
	Subtotal of cash inflows of financing activities	23,620,857	14,375,233
	Cash repaid to amounts borrowed	19,392,411	9,303,104
	Cash payments for distribution of dividends,  profits or interest expenses	1,142,801	2,147,033
	Including: Dividends and profit paid to minority  shareholders by subsidiaries
	Other cash payments relating to financing  activities	3,935,761	2,232,407
	Subtotal of cash outflows of financing activities	24,470,973	13,682,544
	Net cash flows from financing activities	-850,116	692,689

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 previous reporting period (January to September)
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 previous reporting period (January to September)
IV.	Effect of exchange rate changes on cash  and cash equivalents	-14,816	-81,241
V.	Net increase in cash and cash equivalents	1,660,796	271,938
	Add:    Balance of cash and cash equivalents      at the beginning of the period	2,913,332	3,668,528
VI.	Balance of cash and cash equivalents  at the end of the period	4,574,128	3,940,466

Legal representative of the Company: Kong Dong

Person in charge of accounting function: Fan Cheng

Person in charge of accounting department: Li Youqiang

Cash Flow Statement of the Company

January to September 2009

Prepared by Air China Limited

Unit: RMB (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 previous reporting period (January to September)
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 previous reporting period (January to September)
I.	Cash flows from operating activities:
	Cash received from sales of goods, provision  of services	33,506,746	34,326,429
	Refund of tax and levy	41,314	36,747
	Other cash received relating to operating activities	1,557,009	739,139
	Subtotal of cash inflows of operating activities	35,105,069	35,102,315
	Cash paid for goods purchased, services rendered	20,703,724	22,927,025
	Cash paid to and on behalf of employees	2,989,528	2,934,260
	Taxes paid	1,522,522	2,552,144
	Other cash paid in relation to operating activities	5,279,007	2,569,851
	Subtotal of cash outflows of operating activities	30,494,781	30,983,280
	Net cash flows from operating activities	4,610,288	4,119,035
II.	Cash flows from investing activities:
	Cash received from investments
	Cash from investment income	6,632	1,053
	Net cash from disposal of fixed assets,  intangible assets and other long-term assets	415,945	51,388
	Net cash from disposal of subsidiaries  and other business units
	Other cash received from investing activities	655,967	395,759
	Subtotal of cash inflows of investment activities	1,078,544	448,200
	Cash paid to purchase of fixed assets, intangible  assets and other long-term assets	4,354,376	5,156,863
	Cash paid for investments	273,405	121,498
	Net cash from subsidiaries and other business  units
	Cash payments relating to other investments
	Subtotal of cash outflows of investment activities	4,627,781	5,278,361
	Net cash flows from investing activities	-3,549,237	-4,830,161
III.	Cash flows from financing activities:
	Cash received from investments
	Cash received from borrowings	23,120,884	14,200,165
	Other cash relating to financing activities
	Subtotal of cash inflows of financing activities	23,120,884	14,200,165
	Cash repaid to amounts borrowed	19,127,756	9,268,735
	Cash payments for distribution of dividends,  profits or interest expenses	1,006,587	2,121,079
	Other cash payments relating to financing  activities	3,935,761	2,232,406
	Subtotal of cash outflows of financing activities	24,070,104	13,622,220
	Net cash flows from financing activities	-949,220	577,945
IV.	Effect of exchange rate changes on cash  and cash equivalents	-4,063	-56,086

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 previous reporting period (January to September)
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 previous reporting period (January to September)
V.	Net increase in cash and cash equivalents	107,768	-189,267
	Add:    Balance of cash and cash equivalents at      the beginning of the period	1,508,947	1,348,887
VI.	Balance of cash and cash equivalents at  the end of the period	1,616,715	1,159,620

Legal representative of the Company: Kong Dong

Person in charge of accounting function: Fan Cheng

Person in charge of accounting department: Li Youqiang

By order of the Board

Air China Limited

Huang Bin   Tam Shuit Mui

Joint Company Secretaries

Beijing, PRC, 27 October 2009

As at the date of this announcement, the Directors of the Company are Mr. Kong Dong, 
Ms. Wang Yinxiang, Mr. Wang Shixiang, Mr. Cao Jianxiong, Mr. Christopher Dale Pratt, 
Mr. Chen Nan Lok, Philip, Mr. Cai Jianjiang, Mr. Fan Cheng, Mr. Hu Hung Lick, Henry*, 
Mr. Zhang Ke*, Mr. Jia Kang* and Mr. Fu Yang*.

* Independent non-executive Director of the Company

 

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