Announcement on Impairment Provision
Summary by AI BETAClose X
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.
中國國際航空股份有限公司
AIR CHINA LIMITED
(a joint stock limited company incorporated in the People's Republic of China with limited liability)
(Stock Code: 00753)
ANNOUNCEMENT REGARDING PROVISION FOR IMPAIRMENT FOR THE HALF YEAR OF 2025
Air China Limited (the "Company") held the sixth meeting of the seventh session of the board of directors (the "Board") on 28 August 2025, at which the Board considered and approved the "Resolution on Provision for Impairment for the Half Year of 2025".
1. OVERVIEW OF THE PROVISION FOR IMPAIRMENT
In accordance with the Accounting Standards for Business Enterprises and the requirements of the Company's relevant accounting policies and accounting estimates, and in order to present an objective and fair view of the Company's financial position and operating results for the half year of 2025, the Company conducted an assessment of expected credit losses on the relevant assets and performed impairment tests on assets having indications of impairment. Based on the test results, the Company recognised a total of RMB91 million in provisions for various asset impairments for the half year of 2025, with the specific details as follows:
Unit: RMB'000
|
Item |
Provision made for the half year of 2025 |
Remarks |
|
|
||
|
Provision for asset impairment |
85,154 |
Impairment provision for fixed assets |
|
Provision for credit impairment |
5,563 |
Impairment provisions made for accounts receivable, other receivables, other debt investments, other current assets and interbank deposits |
|
Total |
90,717 |
- |
2. SPECIFIC DETAILS OF THE PROVISIONS FOR IMPAIRMENT
A. Provision for Asset Impairment
In accordance with Accounting Standards for Business Enterprises No. 8 - Asset Impairment, the Company conducted an impairment test on aircraft approaching retirement and recognised a provision for fixed asset impairment in the amount of RMB85 million for the shortfall between the assets' recoverable amount and their carrying value.
B. Provision for Credit Impairment
In accordance with Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments, the Company, based on the expected credit losses, recognised impairment provisions in the amount of RMB6 million for accounts receivable, other receivables, other debt investments, other current assets and interbank deposits.
3. IMPACT OF THE PROVISION FOR IMPAIRMENT ON THE COMPANY'S FINANCIAL POSITION
For the half year of 2025, the Company recognised a total of RMB91 million in provisions for various asset impairments in its consolidated financial statements. After considering the comprehensive impact of factors such as the reversal of impairments during the year, loss before taxation in the Company's consolidated financial statements increased by RMB87 million. The provisions for impairment comply with the Accounting Standards for Business Enterprises and the requirements of the Company's relevant accounting policies and estimates, providing a true and objective reflection of the Company's financial position and operating results for the half year of 2025 and accurately represent the actual condition of the Company's assets.
By Order of the Board
Air China Limited
Xiao Feng
Company Secretary
Beijing, the PRC, 28 August 2025
As at the date of this announcement, the directors of the Company are Mr. Ma Chongxian, Mr. Wang Mingyuan, Mr. Cui Xiaofeng, Mr. Patrick Healy, Mr. Xiao Peng, Mr. Xu Niansha*, Mr. He Yun*, Ms. Winnie Tam Wan-chi* and Mr. Gao Chunlei*.
* Independent non-executive director of the Company
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
Latest directors dealings
- 5 hours ago Johnson Matthey
- 6 hours ago Galliford Try
- 6 hours ago Galliford Try
- 6 hours ago Centrica
- 7 hours ago Smith & Nephew