3rd Quarter Results-Third Quarterly Report 2014

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Name of absent director	Position of absent director	Reason(s) for absence	Name of proxy

Fan Cheng	Director	Business engagement	Song Zhiyong

	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

	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

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

Companies

UK 100

Latest directors dealings

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
China National Aviation Corporation (Group) Limited		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.

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.

Investees	Basic information of the transaction	1 January 2013	31 December 2013
Investees	Basic information of the transaction	Equity attributable to shareholders of the Company (+/-)	Long-term equity investments (+/-)	Available-for-sale financial assets (+/-)	Equity attributable to shareholders of 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

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 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	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	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