3rd Quarter Results

RNS Number : 0239R

Air China Ld

28 October 2011

 



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 2011

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 2011 (the "Board Meeting") and the Board passed, inter alia, the resolution approving the quarterly report for the third quarter of 2011 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     Directors absent from the board meeting are required to be disclosed separately

Name of absent directors	Position of absent directors	Reason(s) for absence	Name of proxy
Wang Yinxiang	Vice Chairman and	business engagement	Cao Jianxiong
	Non-executive director
Christopher Dale Pratt	Non-executive director	business engagement	Ian Sai Cheung Shiu
Cai Jianjiang	Executive director	business engagement	Fan Cheng

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

1.4	Legal representative of the Company	Kong Dong
	Person in charge of accounting function	Fan Cheng
	Person in charge of accounting department (accounting superintendent)	Xiao Feng

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 (accounting superintendent) Mr. Xiao Feng 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 the previous year	Increase/ decrease at the end of the reporting period as compared to the end of the previous year
			(%)
Total assets (RMB'000)	171,421,348.00	155,219,613.00	10.44
Owner's equity (or shareholders'  equity) (RMB'000)	47,316,090.00	41,652,625.00	13.60
Net asset per share attributable to  shareholders of the listed    company (RMB per share)	3.89	3.58	8.66

	From the beginning of the year to the end of the reporting period (January to September)	Increase/ decrease over the corresponding period of the previous year
		(%)
Net cash flow from operating     activities (RMB'000)	18,690,636.00	20.04
Net cash flow from operating     activities per share    (RMB per share)	1.54	14.93

	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)	3,799,624.00	7,862,838.00	-26.46
Basic earnings per share    (RMB per share)	0.31	0.65	-31.11
Basic earnings per share after    deducting non-recurring    profits and losses    (RMB per share)	0.30	0.62	-26.83
Diluted earnings per share    (RMB per share)	N/A	N/A	N/A
Weighted average return    on net assets (%)	8.53	17.66	Decreased by 9.57 percentage points
Weighted average return    on net assets after deducting    non-recurring profits    and losses (%)	8.09	16.83	Decreased by 8.51 percentage points

After deducting non-recurring profits and losses:

         RMB'000

Items	Amounts for the period from the beginning of the year to the end of the reporting period (January to September)
Gains/losses from disposal of non-current assets	47,979
Government grants (except for those that are closely related to  the Company's normal operating business and qualified    under national policy to receive certain standard amount    and quantities) included in the profits and losses    for the current period	461,701
Gain/losses 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)	77,208
Reversal of provision for impairment of receivables which    are individually tested for impairment	56,835
Other non-operating income and expenses not covered above	-33,696
Effect of income tax	-150,158
Effect on non-controlling interests (after tax)	-89,840
Total	370,029

2.2     Total number of shareholders and shareholding of 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	320,513
	(in which registered shareholders of H shares amounted to 4,704)

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  4,949,066,567
Cathay Pacific Airways Limited	2,507,385,455	Overseas listed   foreign shares 2,507,385,455
HKSCC NOMINEES LIMITED	1,857,943,579	Overseas listed   foreign shares 1,857,943,579
China National Aviation Corporation    (Group) Limited	1,399,334,920	RMB ordinary shares 1,332,482,920 Overseas listed   foreign shares  66,852,000
China Life Insurance Company Limited -    Bonus- Personal Bonus - 005L - FH002 Shanghai	85,540,848	RMB ordinary shares 85,540,848
Sinotrans Air Transportation Development Co., Ltd.	75,800,000	RMB ordinary shares 75,800,000
China Life Insurance Company    Limited - Traditional - Ordinary    Insurance Products - 005L - CT001 Shanghai	36,092,823	RMB ordinary shares 36,092,823
China Construction Bank - Yinhua - Dow Jones    China 88 Select Equity Fund	23,759,910	RMB ordinary shares 23,759,910
Bank of Communications - E Fund 50 Index    Securities Investment Fund	21,946,169	RMB ordinary shares 21,946,169
Industrial and Commercial Bank of    China - Baoying Pan-Coastal Regional Growth Equity    Securities Investment Fund	21,634,520	RMB ordinary shares 21,634,520

Note: 1. HKSCC NOMINEES LIMITED is a subsidiary of the Hong Kong Securities Clearing Company Limited, and its principle business is shareholding as nominee on behalf of other corporate or  individual shareholders. The 1,857,943,579 H Shares it held in the Company did not include the 66,852,000 Shares not subject to trading moratorium and 100,000,000 Shares subject to trading moratorium which HKSCC Nominees Limited held as nominee for China National Aviation Corporation (Group) Limited.

§3      SIGNIFICANT EVENTS

3.1     Significant changes in the major items of the accounting statements and the key financial indicators of the Company and the underlying reasons

Applicable

Not applicable

From January to September of 2011, the Group's net profit attributable to equity holders of the Company decreased by RMB1,998 million, or 20.26%, as compared with the same period last year, which was mainly attributable to a reduction of gains from movements in fair value and investment income of RMB1,019 million and RMB1,564 million, respectively. Gross profit generated from the principal business increased by RMB2,100 million as compared with the same period last year, in which due to a surge of jet fuel price, the jet fuel cost increased by RMB8,100 million as compared with the same period last year.

Set out below are changes in major items and the underlying reasons:

Accounts payable	32.72%	The increase in the accounts payables    corresponding to major costs was driven    by the increasing number of flight  and the rising oil price.
Corporate bonds	-33.33%	The first tranche of the RMB3,000 million   medium term notes issued in 2009 was   transferred to the non-current liabilities    repayable within one year.
Non-controlling interests	5365.08%	This was mainly attributable to a reduction    of the shareholding in Air China Cargo,    a subsidiary of the Group, from 100% to    51% through ownership restructuring and    other arrangements. Profitability of  other non-wholly owned subsidiaries    also had an impact on  the non-controlling interests.
Finance costs	-375.17%	Due to a substantial change in the exchange  rates, the net exchange gains generated    during the period between January and    September in 2011 increased by    RMB1,330 million as compared with  the same period last year.
Impairment losses  of assets	307.67%	Impairment provision for fixed assets  was made for the current period.
Gains from movements  in fair value	-92.95%	There was a decrease in the balance of  the unsettled fuel derivative contracts for  the current period.
Investment income	-56.10%	There was a decrease in the investment    income from associates as compared with    the same period last year.
Non-operating income	75.50%	There was an increase in the government    grants included in the profit and loss for    the current period.

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 underlying reasons

Applicable

Not applicable

3.5     Distribution of cash dividends during the reporting period

Nil

Air China Limited

Legal representative: Kong Dong

27 October 2011

§4      APPENDIX

4.1     Consolidated Balance Sheet

30 September 2011

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	16,599,513	15,011,027
Provisions on payables
Contributions made
Financial assets held for trading	18,363	27,379
Bills receivable	646	14,295
Accounts receivable	3,235,470	3,180,638
Prepayments	665,130	683,781
Premium receivable
Receivables on reinsurance
Provisions for reinsurance contracts
Interest receivable
Dividend receivable
Other receivables	1,769,556	1,138,695
Purchase of financial assets resold
Inventories	1,130,397	932,317
Non-current assets due within a year
Other current assets
Total current assets	23,419,075	20,988,132
NON-CURRENT ASSETS:
Loans and advances
Available-for-sale financial assets
Held-to-maturity investments
Long term receivables	395,680	393,492
Long term equity investments	15,175,697	15,522,585
Investment property
Fixed assets	98,943,260	88,224,954
Construction in progress	26,945,219	23,518,332
Construction materials
Disposal of fixed assets
Biological assets for production
Oil and gas assets
Intangible assets	2,860,935	2,867,600
Development expenses
Goodwill	1,279,076	1,449,030
Long term deferred expenses	175,481	181,317
Deferred tax assets	2,226,925	2,074,171
Other non-current assets
Total non-current assets	148,002,273	134,231,481
Total assets	171,421,348	155,219,613
CURRENT LIABILITIES:
Short term loans	11,983,922	15,703,154
Borrowings from central bank
Deposits from clients and placements     from other banks
Contributions received
Financial liabilities held for trading	275,694	427,329
Bills payable	190,078	387,327
Accounts payable	12,510,740	9,426,483
Domestic air traffic liabilities	1,929,072	1,582,868
International air traffic liabilities	2,635,212	2,025,831
Receipts in advance	137,210	125,088
Sale of financial assets repurchased
Fees and commissions payable
Employee compensations payable	2,108,654	1,593,762
Taxes payable	3,201,988	2,998,802
Interest payable	322,076	310,029
Dividend payable
Other payables	5,907,568	4,630,782
Amounts payable on reinsurance
Provisions on insurance contracts
Brokerage payable
Underwriting fees payable
Non-current liabilities repayable within one year	10,813,118	11,421,643
Other current liabilities
Total current liabilities	52,015,332	50,633,098

Items	Balance at the end of the period	Balance at the beginning of the year
NON-CURRENT LIABILITIES:
Long term loans	38,380,657	31,923,371
Corporate bonds	6,000,000	9,000,000
Long term payables	2,556,758	2,271,951
Obligations under finance leases	18,183,910	16,061,353
Specific payables
Accrued liabilities	68,080	77,820
Deferred tax liabilities	1,155,985	1,005,840
Deferred income	3,192,617	2,546,860
Other non-current liabilities
Total non-current liabilities	69,538,007	62,887,195
Total liabilities	121,553,339	113,520,293
OWNERS' EQUITY (or SHAREHOLDERS'  EQUITY):
Issued capital	12,891,955	12,891,955
Capital reserve	16,369,935	16,245,469
Less: Treasury shares
Specific reserves
Reserve funds	2,792,686	2,178,300
General risk provisions
Retained earnings	18,201,754	12,515,511
Foreign exchange translation reserve	-2,940,240	-2,178,610
Equity attributable to equity holders     of the Company	47,316,090	41,652,625
Non-controlling interests	2,551,919	46,695
Total owners' equity	49,868,009	41,699,320
Total liabilities and owners' equity	171,421,348	155,219,613

Legal representative of the Company: Kong Dong 

Person in charge of accounting function: Fan Cheng

Person in charge of accounting department: Xiao Feng

Balance Sheet of the Parent Company

30 September 2011

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	9,870,544	11,501,617
Financial assets held for trading
Bills receivable		14,000
Accounts receivable	2,802,445	2,373,658
Prepayments	301,840	286,661
Interest receivable
Dividend receivable
Other receivables	1,863,461	863,251
Inventories	793,951	610,976
Non-current assets due within a year	1,000,000
Other current assets
Total current assets	16,632,241	15,650,163
NON-CURRENT ASSETS:
Available-for-sale financial assets
Held-to-maturity investments
Long term receivables	182,805	202,668
Long term equity investments	21,357,669	20,400,634
Investment property
Fixed assets	73,221,411	66,229,019
Construction in progress	20,537,632	17,073,638
Construction materials
Disposal of fixed assets
Biological assets for production
Oil and gas assets
Intangible assets	2,243,578	2,306,963
Development expenses
Goodwill
Long term deferred expenses	111,174	133,027
Deferred tax assets	1,356,500	1,406,000
Other non-current assets
Total non-current assets	119,010,769	107,751,949
Total assets	135,643,010	123,402,112

Items	Balance at the end of the period	Balance at the beginning of the year
CURRENT LIABILITIES:
Short term loans	10,378,475	12,510,835
Financial liabilities held for trading	217,732	340,049
Bills payable
Accounts payable	7,762,435	6,030,431
Domestic air traffic liabilities	1,415,664	1,061,056
International air traffic liabilities	2,406,410	1,913,086
Receipts in advance	28,663	32,077
Employee compensations payable	1,260,085	826,969
Taxes payable	2,535,100	2,652,617
Interest payable	310,289	283,176
Dividend payable
Other payables	1,747,318	1,817,937
Non-current liabilities repayable within one year	8,733,050	9,018,891
Other current liabilities
Total current liabilities	36,795,221	36,487,124
NON-CURRENT LIABILITIES:
Long term loans	25,573,619	18,576,233
Corporate bonds	6,000,000	9,000,000
Long term payables	1,286,480	1,216,641
Obligations under finance leases	17,374,746	15,407,125
Specific payables
Accrued liabilities	66,693	77,820
Deferred tax liabilities	104,500	128,000
Deferred income	2,332,465	1,806,514
Other non-current liabilities
Total non-current liabilities	52,738,503	46,212,333
Total liabilities	89,533,724	82,699,457
OWNERS' EQUITY (or SHAREHOLDERS'    EQUITY):
Issued capital	12,891,955	12,891,955
Capital reserve	20,111,446	20,112,513
Less: Treasury shares
Specific reserves
Reserve funds	2,783,096	2,168,710
General risk provisions
Retained earnings	10,322,789	5,529,477
Total owners' equity (or shareholders' equity)	46,109,286	40,702,655
Total liabilities and owners' equity     (or shareholders' equity)	135,643,010	123,402,112

Legal representative of the Company: Kong Dong

Person in charge of accounting function: Fan Cheng

Person in charge of accounting department: Xiao Feng

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 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 previous reporting period (January to September)
I.        Total revenue from operations	28,144,172	24,826,376	73,274,530	59,134,049
Including: Operating income	28,144,172	24,826,376	73,274,530	59,134,049
Interest income
Premium earned
Fees and commission income
II.       Total operating cost	23,359,768	19,416,141	63,848,184	50,825,245
Including: Cost of operations	20,308,920	17,149,479	56,112,880	44,100,892
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 surcharges	654,223	514,545	1,682,321	1,176,649
Selling expenses	1,807,184	1,710,459	4,887,771	4,132,214
General and administrative    expenses	754,412	622,543	2,040,634	1,581,768
Finance costs	-660,290	-580,885	-1,390,784	-292,693
Impairment losses of assets	495,319		515,362	126,415
Add: Gains from movements in fair value (loss is represented by "-" sign)	37,882	518,545	77,208	1,095,514
Investment income (loss is  represented by "-" sign)	583,927	897,711	1,224,028	2,787,920
Including: Share of profits and losses of associates  and joint ventures	583,929	889,500	1,222,528	2,628,954
Exchange gains (loss is   represented by "-" sign)

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 previous reporting period (January to September)
III.      Profit from operations (loss is  represented by "-" sign)	5,406,213	6,826,491	10,727,582	12,192,238
Add: Non-operating income	281,074	92,469	536,629	305,780
Less: Non-operating expenses	10,603	8,690	60,645	28,491
Including: Loss on disposal of non-current assets		737	4,955	10,793
IV.      Profit before tax (loss is represented  by "-" sign)	5,676,684	6,910,270	11,203,566	12,469,527
Less: Tax	1,497,438	1,437,168	2,672,207	2,215,254
V.       Net profit (loss is represented              by "-" sign)	4,179,246	5,473,102	8,531,359	10,254,273
Net profit attributable to equity holders    of the Company	3,799,624	5,166,778	7,862,838	9,860,799
Non-controlling interests	379,622	306,324	668,521	393,474
VI.      Earnings per share:
(I) Basic	0.31	0.45	0.65	0.85
(II) Diluted	N/A	N/A	N/A	N/A
VII.     Other comprehensive income	-345,022	-210,909	-564,830	-353,375
VIII.    Total comprehensive income	3,834,224	5,262,193	7,966,529	9,900,898
Attributable to equity holders  of the Company	3,455,872	4,955,883	7,300,418	9,507,401
Non-controlling interests	378,352	306,310	666,111	393,497

Legal representative of the Company: Kong Dong

Person in charge of accounting function: Fan Cheng

Person in charge of accounting department: Xiao Feng

Income Statement of the Parent Company

30 September 2011

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	20,165,821	18,196,086	52,639,379	46,087,475
Less: Cost of operations	14,301,961	12,229,044	39,931,956	34,282,264
Business taxes and surcharges	437,261	368,613	1,132,709	929,114
Selling expenses	1,324,071	1,293,219	3,591,194	3,375,367
General and administrative expenses	421,248	372,030	1,120,662	1,032,642
Finance costs	-674,941	-550,418	-1,417,251	-300,156
Impairment losses in assets	550,000		550,000	126,415
Add: Gains from movements in fair value (loss is represented by "-"sign)	-16,800	519,400	26,119	1,116,002
Investment income (loss is represented by "-" sign)	216,083	172,063	1,083,101	299,251
Including: Share of profits of associates and joint ventures	216,084	171,002	408,118	298,063
II.       Profit from operations (loss is  represented by "-" sign)	4,005,504	5,175,061	8,839,329	8,057,082
Add: Non-operating income	187,575	34,647	342,446	160,071
Less: Non-operating expenses	10,758	6,519	23,299	16,332
Including: Loss on disposal of non-current assets	1,144	792	3,516	4,510
III.      Profit before tax (loss is represented  by "-" sign)	4,182,321	5,203,189	9,158,476	8,200,821
Less: Tax	1,210,536	1,258,993	2,226,948	1,917,856
IV.       Net profit (loss is represented  by "-" sign)	2,971,785	3,944,196	6,931,528	6,282,965
V.        Earnings per share:
(I) Basic
(II) Diluted
VI.      Other comprehensive income	-147		-1,067	452
VII.     Total comprehensive income	2,971,638	3,944,196	6,930,461	6,283,417

Legal representative of the Company: Kong Dong

Person in charge of accounting function: Fan Cheng

Person in charge of accounting department: Xiao Feng

4.3     Consolidated Cash Flow Statement

January to September 2011

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 previous reporting period (January to September)
I.       Cash flows from operating activities:
Cash received from sales of goods, provision of  services	73,226,146	59,086,031
Net increase in deposits from clients and  placements from other banks
Net increase in borrowings from central bank
Net increase in contributions received 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
Net increase in financial assets held for trading
Cash received from interests, fees and commission
Net increase in contributions
Net increase in cash from repurchase operations
Refund of tax and levy
Other cash received relating to operating activities	2,168,068	1,524,519
Subtotal of cash inflows of operating activities	75,394,214	60,610,550
Cash paid for goods purchased, services rendered	38,934,790	32,156,275
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	7,200,571	5,174,381
Tax paid	5,266,213	2,485,454
Other cash paid in relation to operating activities	5,302,004	5,223,553
Subtotal of cash outflows of operating activities	56,703,578	45,039,663
Net cash flows from operating activities	18,690,636	15,570,887
II.      Cash flows from investing activities:
Cash received from investments
Cash from investment income	852,727	166,296
Net cash from disposal of fixed assets,  intangible assets and other long term assets	494,152	227,261
Net cash from disposal of subsidiaries and  other business units	1,669,177	18,170
Other cash received from investing activities	1,439,248	3,073,261
Subtotal of cash inflows of investment activities	4,455,304	3,484,988
Cash paid to purchase of fixed assets,  intangible assets and other long term assets	16,712,276	12,361,886
Cash paid to investments		225,569
Net increase in pledged loans
Net cash from subsidiaries and other business units
Cash payments relating to other investments	130,643
Subtotal of cash outflows of investment activities	16,842,919	12,587,455
Net cash flows from investing activities	-12,387,615	-9,102,467
III.     Cash flows from financing activities:
Cash received from investments
Including: Cash received from investments of  minority shareholders through subsidiaries
Cash received from borrowings	22,901,906	24,025,525
Cash received from issue of debentures
Other cash relating to financing activities
Subtotal of cash inflows of financing activities	22,901,906	24,025,525
Cash repaid to amounts borrowed	21,606,315	21,772,449
Cash payments for distribution of dividends,  profits or interest expenses	3,384,556	1,110,549
Including: Dividends and profit paid to  minority shareholders by subsidiaries
Other cash payments relating to financing activities	1,823,936	2,328,048
Subtotal of cash outflows of financing activities	26,814,807	25,211,046
Net cash flows from financing activities	-3,912,901	-1,185,521

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	-126,754	-47,157
V.       Net increase in cash and cash equivalents	2,263,366	5,235,742
Add: Balance of cash and cash equivalents  at the beginning of the period	14,204,591	2,636,821
VI.     Balance of cash and cash equivalents at the end            of the period	16,467,957	7,872,563

Legal representative of the Company: Kong Dong

Person in charge of accounting function: Fan Cheng

Person in charge of accounting department: Xiao Feng

Cash Flow Statement of the Parent Company

January to September 2011

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 previous reporting period (January to September)
I.       Cash flows from operating activities:
Cash received from sales of goods, provision of  services	52,714,914	45,647,580
Refund of tax and levy
Other cash received relating to operating activities	972,843	918,841
Subtotal of cash inflows of operating activities	53,687,757	46,566,421
Cash paid for goods purchased, services rendered	28,701,031	24,308,504
Cash paid to and on behalf of employees	4,427,420	3,715,999
Taxes paid	4,192,114	1,755,795
Other cash paid in relation to operating activities	3,811,472	3,945,359
Subtotal of cash outflows of operating activities	41,132,037	33,725,657
Net cash flows from operating activities	12,555,720	12,840,764
II.      Cash flows from investing activities:
Cash received from investments
Cash from investment income	87,246	58,965
Net cash from disposal of fixed assets, intangible  assets and other long term assets	152,870	202,840
Net cash from disposal of subsidiaries and  other business units
Other cash received from investing activities	126,913	150,310
Subtotal of cash inflows of investment activities	367,029	412,115
Cash paid to purchase of fixed assets, intangible  assets and other long term assets	11,428,133	9,472,950
Cash paid for investments	1,000,000	71,800
Net cash from subsidiaries and other business units	670,000	682,144
Cash payments relating to other investments	98,140	112,069
Subtotal of cash outflows of investment activities	13,196,273	10,338,963
Net cash flows from investing activities	-12,829,244	-9,926,848
III.     Cash flows from financing activities:
Cash received from investments
Cash received from borrowings	19,058,514	21,118,193
Cash received from issue of debentures
Other cash relating to financing activities
Subtotal of cash inflows of financing activities	19,058,514	21,118,193
Cash repaid to amounts borrowed	15,960,240	17,071,106
Cash payments for distribution of dividends,  profits or interest expenses	2,807,771	802,070
Other cash payments relating to financing activities	1,573,774	2,267,802
Subtotal of cash outflows of financing activities	20,341,785	20,140,978
Net cash flows from financing activities	-1,283,271	977,215
IV.     Effect of exchange rate changes on cash and            cash equivalents	-74,278	-35,742
V.       Net increase in cash and cash equivalents	-1,631,073	3,855,389
Add: Balance of cash and cash equivalents at the  beginning of the period	11,501,617	1,089,515
VI.     Balance of cash and cash equivalents at the end            of the period	9,870,544	4,944,904

Legal representative of the Company: Kong Dong

Person in charge of accounting function: Fan Cheng

Person in charge of accounting department: Xiao Feng

By order of the Board

Air China Limited

Huang Bin   Tam Shuit Mui

Joint Company Secretaries

Beijing, PRC, 27 October 2011

As at the date of this announcement, the Directors of the Company are Mr. Kong Dong, Ms. Wang Yinxiang, Mr. Cao Jianxiong, Mr. Sun Yude, Mr. Christopher Dale Pratt, Mr. Ian Sai Cheung Shiu, Mr. Cai Jianjiang, Mr. Fan Cheng, Mr. Fu Yang*, Mr. Li Shuang*, Mr. Han Fangming* and Mr. Yang Yuzhong*.

* Independent non-executive Director of the Company

 

END

 

 

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