ANNUAL REPORT 2021-Correction

	Agreement	Parties and Connected Relationship	Execution Date and Term of Agreement	Contents of Agreement	Pricing Policy
1	Properties Leasing Framework Agreement	The Company and CNAHC (a substantial shareholder of the Company and therefore a connected person of the Company)	Renewed on 30 October 2018 with a term from 1 January 2019 to 31 December 2021 The details are set out in the announcement of the Company dated 30 October 2018	The Group agreed to lease from and to CNAHC Group a number of properties.	The rent payable will be consulted and determined based on the price for leasing services available from independent third parties for the same type of properties in close proximity to the properties with reference to other factors including property service quality, location, district of properties and specific needs of the parties.

2	Sales Agency Services Framework Agreement	The same as above	The same as above	Certain subsidiaries of CNAHC Group will (i) solicit customers and act as the Group's sales agents for the Group's air tickets and cargo spaces on a commission basis; or (ii) purchase air tickets (other than domestic air tickets) and cargo spaces from the Group and resell such air tickets and cargo spaces to end customers.	The air passenger agency services: agency service fee shall be consulted and determined on a fair and voluntary basis; specific sales targets and the corresponding incentive plans for achieving such targets may be agreed to the extent permitted by law and in accordance with the industry practice. The air cargo agency services: the transportation prices shall be not less favourable than the prices offered by independent third parties in China's air cargo transportation market for transporting such products, with reference to prices charged by air cargo agencies of the same scale and type as well as the specific product types and required transportation time; specific sales targets and the corresponding price discounts on cargo transportation for achieving such sales targets may be agreed in accordance with the industry practice.

3	Comprehensive Services Framework Agreement	The same as above	The same as above	(i) The subsidiaries of CNAHC engaged in ancillary services in relation to air transportation business will be appointed as suppliers of ancillary services in relation to production or supply services business to the Company. (ii) The Company is commissioned by CNAHC to provide welfare logistics services for CNAHC's retired employees.	Ancillary services in relation to air transportation business: (i) the prices of airline catering services will be consulted and determined based on the price for the same type of catering services available from independent third parties with reference to relevant factors; (ii) the prices of property management services will be consulted and determined based on the price for the same type of property management services available from independent third parties with reference to relevant factors; (iii) the prices of hotel accommodation and staff recuperation services shall be no less favourable than the price for the same type of guest room products or services available to the Group from independent third parties with equivalent level in the same location of the hotel and determined with reference to relevant factors; and (iv) catering supplies, publications and other services are provided in accordance with the bidding management requirements of the Group, and the prices shall be no less favourable than the price of similar products or services available from independent third parties to the Group. Welfare-logistics services for CNAHC's retired employees: management fee charged by the Company at a rate of 4% of the actual aggregate welfare expense paid to such retired employees as confirmed by CNAHC.

4	Government Charter Flight Service Framework Agreement	The same as above	The same as above	CNAHC agreed to resort to the Company's charter flight services so as to fulfill the government charter flight assignment.	Hourly rate of the charter flight services = Total cost per flight hour * (1 + 6.5%). Total cost per flight hour includes direct costs and indirect costs.

5	Media Services Framework Agreement	The Company and CNAMC (CNAMC is a wholly-owned subsidiary of CNAHC and therefore a connected person of the Company)	The same as above	CNAMC provided the Group with media services. Among them, the Company grants CNAMC an exclusive right to distribute the in-flight reading materials of the Company.	For the entrusted media services provided by CNAMC to the Company, the Company should pay the relevant service fee at market price to CNAMC. For the media resources of the Company used in the course of the Company's media business by CNAMC, CNAMC should pay the Company RMB13.8915 million as media usage fee for each year within the term of the agreement.

6	Construction Project Management Framework Agreement	The Company and CNACD (a wholly-owned subsidiary of CNAHC and therefore a connected person of the Company)	The same as above	CNACD was commissioned by the Company to serve as the manager of the construction projects and establish project headquarters. It shall provide management services for the Company's projects based on its project characteristics using its industry expertise and professional skills.	CNACD receives service fees based on the audited amounts in the financial settlement of specific commissioned projects in accordance with the commissioned management contract. The service fees shall be calculated at 3% of the audited amount in the financial settlement of the investment relating to the management contents provided by CNACD as commissioned by the Company, with the rewards and penalties agreed by both parties based on the project management progress and the balance. Alternatively, CNACD may receive service fees from the Company as per the commissioned management contents based on the size of or investment in the projects to be commissioned, and the service fees shall be calculated as per the full-labour cost (including management fee) based on the human resources and materials invested by CNACD, with the rewards and penalties agreed by both parties based on the project management progress and the balance.

7	Financial Services Agreement	The Company and CNAF (CNAF is a non-wholly owned subsidiary of the Company that CNAHC holds 49% of its equity interest and therefore a connected subsidiary of the Company)	Renewed on 28 August 2020 with a term from 1 January 2021 to 31 December 2023 The details are set out in the announcement of the Company dated 28 August 2020	CNAF agreed to provide the Group with a range of financial services including deposit services, credit services and other financial services.	Interest rates applicable to deposits: should (i) comply with the requirements prescribed by the People's Bank of China on the interest rates for such type of deposit; (ii) not be lower than the interest rates for the same type of services charged by State-owned commercial banks to the Group under the same conditions; and (iii) not be lower than the interest rates for the same type of services charged by CNAF to other CNAHC member companies under the same conditions. Interest rates applicable to credit services: should (i) comply with the requirements prescribed by the People's Bank of China on the interest rates for such type of loan; (ii) not be higher than the interest rates for the same type of services offered by State-owned commercial banks to the Group under the same conditions; and (iii) not be higher than the interest rates for the same type of services offered by CNAF to other CNAHC member companies under the same conditions. Fees for other paid financial services: should (i) comply with the relevant charging standards (if any) prescribed by the People's Bank of China, CBIRC, CSRC, NAFMII or other regulatory authorities; (ii) not be higher than those for the same type of services charged by State-owned commercial banks to the Group under the same conditions; and (iii) not be higher than those for the same type of services charged by CNAF to other CNAHC member companies under the same conditions.

8	Financial Services Framework Agreement1	CNAF (a non-wholly owned subsidiary of the Company), and CNAHC (a substantial shareholder of the Company and therefore a connected person of the Company)	The same as above	CNAF agreed to provide CNAHC Group with a range of financial services including deposit services, credit services and other financial services.	Interest rates applicable to deposits: should (i) comply with the requirements prescribed by the People's Bank of China on the interest rates for such type of deposit; (ii) not be higher than the interest rates for the same type of services charged by State-owned commercial banks to CNAHC Group under the same conditions; and (iii) not be higher than the interest rates for the same type of services charged by CNAF to other CNAHC member companies under the same conditions. Interest rates applicable to credit services: should (i) comply with the requirements prescribed by the People's Bank of China on the interest rates for such type of loan; (ii) not be lower than the interest rates for the same type of services offered by State-owned commercial banks to the CNAHC Group under the same conditions; and (iii) not be lower than the interest rates for the same type of services offered by CNAF to other CNAHC member companies under the same conditions. Fees for other paid financial services: should (i) comply with the relevant charging standards (if any) prescribed by the People's Bank of China, CBIRC, CSRC, NAFMII or other regulatory authorities; (ii) not be lower than those for the same type of services charged by State-owned commercial banks to the CNAHC Group under the same conditions; and (iii) not be lower than those for the same type of services charged by CNAF to other CNAHC member companies under the same conditions.

9	Framework Agreement	The Company and CNACG (CNACG is a substantial shareholder of the Company and therefore a connected person of the Company)	Renewed and revised on 30 October 2019 with a term from 1 January 2020 to 31 December 2022 The details are set out in the announcement of the Company dated 30 October 2019	Finance and operating lease services: CNACG Group agreed to provide finance and operating lease services in respect of, among other things, aircraft, engines, simulators, equipment and vehicles to the Group; the Group agreed to provide finance and operating lease services in respect of, among other things, equipment and vehicles to CNACG Group. Ground support services and other services: including but not limited to the following transactions conducted between any member of the Group on the one hand and any member of CNACG Group on the other hand: ground support services, aircraft maintenance services, aircraft repair services, property investment and management services, ticket and tourism services, logistics services, administrative management services, cleaning and washing services, resident security services, lounge supplies procurement services and aircraft material procurement services.	Finance and operating lease services: The final transaction price will be determined on arm's length negotiations between both parties with reference to the prices for the same type of lease services offered by independent third parties and after taking into account certain factors. Such factors include purchasing price of the leasing subject, interest rate and arrangement fees (if any) (for finance lease), rental fee (for operating lease), the lease terms, the features of the leasing subject and the comparable market rental prices. The final transaction price shall not be higher than the transaction prices offered by at least two independent third parties on the same conditions. Ground support services and other services: (1) Follow the government pricing or guidance price if it is available; (2) If no government pricing or guidance price is available, the final transaction price will be determined on arm's length negotiations between the parties, with reference to the market prices offered by at least two independent third parties on the market for the same type of service, and after taking into account certain factors such as the service standard, service scope, business volume and specific needs of the parties. If any service needs of the service recipient changes, appropriate adjustment will be made to the transaction price after negotiation between both parties based on the extent of variation in the relevant costs, service quality or other factors; (3) If neither of the above cases is applicable, the price will be determined on the basis of costs plus reasonable profit. The costs are mainly based on the costs and expenses of the service provider, including costs of human resources, facility, equipment and materials. Reasonable profit margin will be determined with mainly making reference to the historical average prices of similar products or services (where possible) published in the relevant industry, and/or the profit margin of the comparable products and services disclosed by other listed companies. The profit margin of CNACG Group shall not exceed 10%. The final transaction prices shall be determined on terms that, to the Group, are no less favorable to those provided by independent third parties to the Group or those provided by CNACG Group to independent third parties (with regards to the receipt of services by the Group), or no more favorable than those provided by the Group to the independent third parties (with regards to the rendering of services by the Group).

10	Framework Agreement	The Company and Cathay Pacific (Cathay Pacific is a substantial shareholder of the Company and therefore a connected person of the Company)	Renewed on 1 October 2019 with a term from 1 January 2020 to 31 December 2022 The details are set out in the announcement of the Company dated 28 August 2019	Providing a framework for the transactions between the Group and Cathay Pacific Group arising from interline arrangements, code sharing arrangements, joint operating arrangements, aircraft leasing, frequent flyer programmes, the provision of airline catering, ground support and engineering services and other services agreed to be provided and other transactions agreed to be undertaken under the Cathay Pacific Framework Agreement.	Interline arrangements and code share arrangements: Revenue is apportioned between the parties in accordance with bilateral prorate agreements which follow the principles in the Multi-lateral Prorate Agreement of International Air Transport Association. Joint operating arrangements: Revenue is apportioned between the parties having regard to the fleet capacity of both parties and the values of seats sold by each party. Aircraft leasing: Rentals payable under aircraft leases are determined after negotiations at arm's length between the parties having regard to rentals payable under comparable leases between unconnected parties for comparable aircraft and comparable periods and prevailing long-term interest rates. Frequent flyer programmes: Frequent flyers of either party can earn mileage credits by taking the other party's flights. Payments by each party to the other for mileage values are determined by the parties on an arm's length basis having regard to comparable mileage values payable by unconnected airlines to each other. Airline catering: The parties determine the pricing of airline catering having regard to quotations provided by unconnected caterers, taking due account of material and labor costs, quality, assurance of supply, safety and innovation (including changes in the foregoing matters). Ground support and engineering services: The pricing is required to be no less favorable than that offered for comparable services to unconnected parties taking due account of the quality of services. Other products and services (including leasing premises and customs declaration services): The pricing is determined having regard to relevant market information (including independent third party quotations for comparable products and services), costs incurred by the relevant party and the quality of products and services.

11	Framework Agreement	The Company and Air China Cargo (a 51%-owned subsidiary of CNAHC and therefore a connected person of the Company)	Renewed and revised on 30 October 2019 with a term from 1 January 2020 to 31 December 2022 The details are set out in the announcement of the Company dated 30 October 2019	Bellyhold space business contracting operation: The Company has contracted the operation of all bellyhold space business to Air China Cargo. Air China Cargo shall undertake the overall responsibilities for transporting the cargos in the capacity of contracted carrier to the consignors with respect to the cargos which are transported through the bellyhold spaces of passenger aircraft. Ground support services and other services: The ground support services and other services provided by the Group to ACC Group include but are not limited to operation support services, IT sharing services, comprehensive support services, engine and other aircraft-related materials lease services and labor management services. The ground support services and other services provided by ACC Group to the Group include but are not limited to terminal cargo and mail services, airport apron services, container and pallet management services, engine and other aircraft related materials lease services.	Contracting Operation Income: The Company will regularly receive the contracting operation income from Air China Cargo in respect of bellyhold space business each year. The parties shall determine the benchmark income (excluding tax) of bellyhold space business contracting operation after arm's length negotiations with reference to the Company's fleet capacity, overall load factor and yield level. The specific formula is as follows: benchmark income (excluding tax) = ATK (available tonne kilometres) × OLF (overall load factor) × yield level per kilometer. The parties agreed to jointly appoint a qualified accounting firm to conduct a special audit on the actual income (excluding tax) of Air China Cargo for the operation of bellyhold space business of the previous financial year within three months after the end of each financial year. Where there is any difference between the benchmark income (excluding tax) and the actual income (excluding tax), the excess income or risk incurred shall be allocated between Air China Cargo and the Company at the proportion of 51% and 49%, respectively, and paid accordingly. The operation expense of the bellyhold space business: The Company shall pay the operation expenses of the bellyhold space business to Air China Cargo on a regular basis per year. In accordance with the common industry practice, the operation expense shall be determined according to the settlement price (determined according to the method as set out above in the paragraph headed "Contracting Operation Income") and the Expense Rate, and the calculation formula is as follows: Operation Expense = Settlement Price × Expense Rate. The expense rate shall be determined by the parties through arm's length negotiation with reference to historical expense rates and other factors such as expense rates of companies in the relevant industry and their variation trends. Ground support services and other services: The pricing policies for the ground support services and other services provided to or by the Group are set forth below: (1) Follow the government pricing or guidance price if it is available; (2) If no government pricing or guidance price is available, the final transaction price will be determined on arm's length negotiations between the parties, with reference to the market prices offered by at least two independent third parties on the market for the same type of service, and after taking certain factors into account such as the service standard, service scope, business volume and specific need of parties. If any service needs of the service recipient changes, appropriate adjustment will be made to the transaction price after negotiation between both parties based on the extent of variation in relevant costs, service quality or other factors; (3) If neither of the above cases is applicable, the price will be determined on the basis of costs plus reasonable profit. The costs are mainly based on the costs and expenses of the service provider, including costs of human resources and costs of facility, equipment and materials. Reasonable profit margin will be determined with mainly making reference to the historical average prices of similar products or services (where possible) published in the relevant industry, and/or the profit margin of the comparable products and services disclosed by other listed companies. The profit margin of ACC Group shall not exceed 10%. The final transaction prices shall be determined on terms that, to the Group, are no less favorable to those provided by independent third parties to the Group or those provided by ACC Group to independent third parties (with regards to the receipt of services by the Group), or no more favorable than those provided by the Group to the independent third parties (with regards to the rendering of services by the Group).

		31 December	31 December

Non-current assets
Property, plant and equipment	17	98,804,707	101,346,490
Right-of-use assets	18	121,610,254	114,539,680
Investment properties	19	571,798	600,329
Intangible assets	20	35,430	36,580
Goodwill	21	1,099,975	1,099,975
Interests in associates	23	10,390,940	10,938,428
Interests in joint ventures	24	1,830,070	1,581,105
Advance payments for aircraft and flight equipment		21,510,230	24,907,862
Deposits for aircraft under leases		566,684	615,537
Equity instruments at fair value through other comprehensive income	25	176,323	233,180
Debt instruments at fair value through other comprehensive income	26	1,373,634	1,344,829
Deferred tax assets	27	9,757,097	6,750,883
Other non-current assets		257,320	298,836


		267,984,462	264,293,714


Current assets
Inventories	28	2,050,282	1,853,990
Accounts receivable	29	2,991,037	2,942,799
Bills receivable		3,591	6,593
Prepayments, deposits and other receivables	30	3,631,521	3,912,471
Financial assets at fair value through profit or loss		4,157	-
Restricted bank deposits	31	774,951	737,245
Cash and cash equivalents	31	15,934,713	5,837,998
Assets held for sale	32	333,884	-
Other current assets	33	4,672,592	4,444,806


		30,396,728	19,735,902


Total assets		298,381,190	284,029,616


Current liabilities
Air traffic liabilities		(2,116,028)	(2,002,649)
Accounts payable	34	(12,590,775)	(12,510,582)
Bills payable		(199,276)	(62,570)
Dividends payable		(98,000)	(98,000)
Other payables and accruals	35	(19,593,940)	(11,177,928)
Current taxation		(4,572)	(45,614)
Lease liabilities	36	(14,534,309)	(13,560,862)
Interest-bearing borrowings	37	(40,201,875)	(39,630,365)
Provision for return condition checks	38	(801,235)	(229,514)
Contract liabilities	39	(1,479,717)	(1,280,102)


		(91,619,727)	(80,598,186)


Net current liabilities		(61,222,999)	(60,862,284)

Total assets less current liabilities		206,761,463	203,431,430


Non-current liabilities
Lease liabilities	36	(76,347,051)	(76,098,678)
Interest-bearing borrowings	37	(53,120,047)	(31,639,097)
Provision for return condition checks	38	(8,583,611)	(8,580,560)
Provision for early retirement benefit obligations		(1,006)	(1,351)
Long-term payables		(15,646)	(21,022)
Contract liabilities	39	(1,772,209)	(2,264,843)
Defined benefit obligations	40	(218,336)	(229,332)
Deferred income	41	(544,383)	(488,791)
Deferred tax liabilities	27	(328,063)	(334,720)


		(140,930,352)	(119,658,394)


NET ASSETS		65,831,111	83,773,036


CAPITAL AND RESERVES
Issued capital	42	14,524,815	14,524,815
Treasury shares	42	(3,047,564)	(3,047,564)
Reserves		49,891,306	66,064,076


Total equity attributable to equity shareholders of the Company		61,368,557	77,541,327
Non-controlling interests		4,462,554	6,231,709


TOTAL EQUITY		65,831,111	83,773,036

Companies

Air China Ltd. (AIRC)

UK 100

Latest directors dealings

6 hours ago Johnson Matthey
7 hours ago Galliford Try
7 hours ago Galliford Try
7 hours ago Centrica
8 hours ago Smith & Nephew

All directors dealings today

3	Corporate Information	Financial Statements Prepared under International Financial Reporting Standards
4	Chairman's Statement	76	Independent Auditor's Report
6	Summary of Financial Information	82	Consolidated Statement of Profit or Loss
7	Summary of Operating Data	83	Consolidated Statement of Profit or Loss and Other Comprehensive Income
9	Fleet Information
10	Business Overview	84	Consolidated Statement of Financial Position
2 1	Management's Discussion and Analysis of Financial Position and Operating Results	86	Consolidated Statement of Changes in Equity
		87	Consolidated Statement of Cash Flows
28	Corporate Governance Report	89	Notes to the Consolidated Financial Statements
44	Report of the Directors	193	Supplementary Information
68	Profile of Directors, Supervisors and Senior Management	194	Glossary of Technical Terms
		195	Definitions

	31 December 2021	31 December 2020	31 December 2019	31 December 2018	31 December 2017

Total assets	298,381,190	284,029,616	294,206,373	243,657,108	235,644,584
Total liabilities	232,550,079	200,256,580	192,876,910	143,159,074	140,785,986
Non-controlling interests	4,462,554	6,231,709	7,870,786	7,340,693	8,811,036
Equity attributable to equity shareholders of the Company	61,368,557	77,541,327	93,458,677	93,157,341	86,047,562
Equity attributable to equity shareholders of the Company per share (RMB)	4.23	5.34	6.43	6.41	5.92

	Current period	Previous period	Increase/(decrease)

Capacity
ASK (million)	152,444.53	156,060.66	(2.32%)
International	4,152.23	18,639.58	(77.72%)
Mainland China	145,939.38	135,554.18	7.66%
Hong Kong SAR, Macau SAR and Taiwan, China	2,352.93	1,866.90	26.03%

AFTK (million)	10,760.61	9,634.66	11.69%
International	6,715.58	6,163.23	8.96%
Mainland China	3,937.54	3,375.26	16.66%
Hong Kong SAR, Macau SAR and Taiwan, China	107.49	96.17	11.77%

ATK (million)	24,490.45	23,685.73	3.40%


Traffic
RPK (million)	104,625.58	109,830.07	(4.74%)
International	1,880.33	11,753.53	(84.00%)
Mainland China	101,494.42	97,117.80	4.51%
Hong Kong SAR, Macau SAR and Taiwan, China	1,250.83	958.75	30.47%

RFTK (million)	4,302.85	3,558.06	20.93%
International	2,981.52	2,300.49	29.60%
Mainland China	1,281.20	1,229.44	4.21%
Hong Kong SAR, Macau SAR and Taiwan, China	40.13	28.13	42.63%

Passengers carried (thousand)	69,045.17	68,687.07	0.52%
International	301.31	2,241.20	(86.56%)
Mainland China	67,995.09	65,834.70	3.28%
Hong Kong SAR, Macau SAR and Taiwan, China	748.78	611.18	22.51%

Cargo and mail carried (tonnes)	1,186,701.55	1,113,676.51	6.56%

Kilometres flown (million)	994.20	973.01	2.18%

Block hours (thousand)	1,590.15	1,552.86	2.40%

Number of flights	572,264	551,373	3.79%
International	18,179	29,703	(38.80%)
Mainland China	545,724	513,747	6.22%
Hong Kong SAR, Macau SAR and Taiwan, China	8,361	7,923	5.53%

RTK (million)	13,598.95	13,285.14	2.36%


Load factor
Passenger load factor (RPK/ASK)	68.63%	70.38%	(1.75 ppt)
International	45.28%	63.06%	(17.78 ppt)
Mainland China	69.55%	71.65%	(2.10 ppt)
Hong Kong SAR, Macau SAR and Taiwan, China	53.16%	51.36%	1.80 ppt

Cargo and mail load factor (RFTK/AFTK)	39.99%	36.93%	3.06 ppt
International	44.40%	37.33%	7.07 ppt
Mainland China	32.54%	36.42%	(3.88 ppt)
Hong Kong SAR, Macau SAR and Taiwan, China	37.33%	29.25%	8.08 ppt

Overall load factor (RTK/ATK)	55.53%	56.09%	(0.56 ppt)


Utilisation
Daily utilisation of aircraft (block hours per day per aircraft)	6.28	6.34	(0.06 hours)


Yield
Yield per RPK (RMB)	0.5574	0.5074	9.85%
International	1.8523	0.8204	125.78%
Mainland China	0.5318	0.4665	14.00%
Hong Kong SAR, Macau SAR and Taiwan, China	0.6872	0.8109	(15.25%)

Yield per RFTK (RMB)	2.5828	2.4040	7.44%
International	3.0329	2.9885	1.49%
Mainland China	1.3722	1.1574	18.56%
Hong Kong SAR, Macau SAR and Taiwan, China	7.7885	9.0770	(14.20%)

Unit cost
Operating expense per ASK (RMB)	0.6262	0.5448	14.94%
Operating expense per ATK (RMB)	3.8980	3.5899	8.58%

	Sub-total	Self-owned	Finance leases	Operating leases	Average age (year)

Airbus	408	155	135	118	7.94

A319	41	32	6	3	14.18

A320/A321	287	96	105	86	7.00

A330	64	27	8	29	9.56

A350	16	-	16	-	2.17

Boeing	326	143	97	86	8.76

B737	274	119	77	78	8.93

B747	10	8	2	-	12.47

B777	28	4	18	6	7.71

B787	14	12	-	2	4.86

COMAC	7	1	6	-	0.81

ARJ21	7	1	6	-	0.81

Business jets	5	1	-	4	8.52

Total	746	300	238	208	8.23

	Shenzhen Airlines	Air Macau	Beijing Airlines	Dalian Airlines	Air China Inner Mongolia	Ameco	CNAF	Cathay Pacific	Shandong Airlines


Year of establishment	1992	1994	2011	2011	2013	1989	1994	1946	1999

Place of domicile	Shenzhen	Macau	Beijing	Dalian	Inner Mongolia	Beijing	Beijing	Hong Kong	Shandong

Principal business	Air passenger and air cargo services	Air passenger and air cargo services	Business charter and public air passenger and air cargo services	Air passenger and air cargo services	Air passenger and air cargo services	Repair and overhaul of aircraft, engines and components	Provision of financial services to CNAHC Group and the Group	Air passenger and air cargo services	Air passenger and air cargo services

Registered capital	RMB5,360,000,000	MOP2,242,042,000	RMB1,000,000,000	RMB3,000,000,000	RMB1,000,000,000	USD300,052,800	RMB1,127,961,864	6,437,200,203 shares in issue	RMB400,000,000

Percentage of shareholding by the Company	51%	66.92%	51%	80%	80%	75%	51%	29.99%	22.8%

Revenue (RMB100 million)	185.00	9.33	3.17	10.17	11.43	81.67	2.29	378.20	125.15

Year-on-year changes (%)	6.36	40.30	(21.84)	(3.72)	16.75	(4.93)	0.78	(7.24)	18.80

Total assets (RMB100 million)	670.44	60.15	11.31	44.37	22.14	64.83	223.93	1,607.62	326.44

Profit/(loss) attributable to parent company (RMB100 million)	(33.43)	(6.74)	(1.16)	(1.89)	(1.38)	(1.46)	0.46	(50.80)	(18.14)

Profit/(loss) attributable to parent company in the corresponding period of last year (RMB100 million)	(20.62)	(9.18)	(0.32)	0.25	(0.35)	(1.53)	0.65	(190.04)	(23.82)

	Introduction Plan			Phase-out Plan
	2022	2023	2024	2022	2023	2024

Airbus	36	6	-	10	10	10

A319	-	-	-	4	2	8

A320/A321	27	1	-	-	3	2

A330	-	-	-	6	5	-

A350	9	5	-	-	-	-

Boeing	-	-	-	12	5	1

B737	-	-	-	12	5	1

COMAC	10	9	9	-	-	-

ARJ21	10	9	9	-	-	-

Total	46	15	9	22	15	11

As at the end of the Reporting Period/ During the Reporting Period	Shenzhen Airlines	Air Macau	Beijing Airlines*	Dalian Airlines	Air China Inner Mongolia	Cathay Pacific	Shandong Airlines


Fleet size (unit)	229 (on a consolidated basis)	17	3	13	12	234 (on a consolidated basis)	134

Average age (year)	8.04	5.56	12.08	8.24	9.61	10.5	8.21

ASK (100 million)	518.35	19.62	4.51	26.01	28.79	132.28	350.94

Year-on-year changes (%)	(0.41)	11.14	(18.29)	(11.01)	17.01	(61.8)	3.83

RPK (100 million)	358.59	11.76	3.04	17.72	19.58	41.20	268.56

Year-on-year changes (%)	(3.57)	28.96	(22.40)	(12.11)	13.70	(79.5)	4.80

Passengers carried (10 thousand)	2,433.13	69.85	31.67	149.10	174.28	71.7	1,865.49

Year-on-year changes (%)	(4.51)	27.95	(26.19)	(5.52)	10.94	(84.5)	2.53

Average passenger load factor (%)	69.18	59.96	67.31	68.11	67.99	31.1	76.53

Year-on-year changes (ppt)	(2.27)	8.28	(3.57)	(0.85)	(1.98)	(26.9)	0.71

	2021		2020
(in RMB'000)	Amount	Percentage	Amount	Percentage	Change


Mainland China	60,833,951	81.63%	51,953,674	74.74%	17.09%

Hong Kong SAR, Macau SAR and Taiwan, China	1,172,112	1.57%	1,032,767	1.49%	13.49%

Europe	4,795,494	6.43%	6,176,092	8.89%	(22.35%)

North America	2,661,521	3.57%	3,397,082	4.89%	(21.65%)

Japan and Korea	958,898	1.29%	2,123,022	3.05%	(54.83%)

Asia Pacific and others	4,109,694	5.51%	4,821,112	6.94%	(14.76%)

Total	74,531,670	100.00%	69,503,749	100.00%	7.23%

	Number of meetings attended in person/should be attended
	General Meeting	Board Meeting	Audit and Risk Control Committee (Supervision Committee) Meeting	Nomination and Remuneration Committee Meeting	Strategy and Investment Committee Meeting	Aviation Safety Committee Meeting


Executive Directors

Song Zhiyong	2/3	10/11	N/A	N/A	7/7	2/2

Ma Chongxian	0/1	6/6	N/A	N/A	N/A	N/A


Non-executive Directors

Feng Gang	2/3	11/11	N/A	N/A	N/A	N/A

Patrick Healy	3/3	11/11	N/A	N/A	N/A	N/A

Xue Yasong	2/3	10/11	N/A	N/A	N/A	N/A


Independent Non-executive Directors

Wang Xiaokang (resigned during the Reporting Period)	0/0	0/1	N/A	0/0	N/A	N/A

Duan Hongyi	3/3	11/11	8/8	6/6	7/7	N/A

Stanley Hui Hon-chung	3/3	11/11	8/8	N/A	N/A	2/2

Li Dajin	3/3	10/11	7/8	6/6	N/A	N/A

Training for Directors during the Reporting Period	Category ^Notes


Executive Directors

Song Zhiyong (Chairman)	a, b

Ma Chongxian (President)	a, b

Non-executive Directors

Feng Gang	b

Patrick Healy	a

Xue Yasong	a, b

Independent Non-executive Directors

Wang Xiaokang (resigned during the Reporting Period)	a

Duan Hongyi	a, b

Stanley Hui Hon-chung	a, b

Li Dajin	a, b

Name	Position	Gender	Age	Starting date of term of office	Expiry date of term of office	Total remuneration payables received from the Company during the Reporting Period (RMB0'000)	Whether received remuneration from the Company's related parties or not


Song Zhiyong	Executive Director	Male	56	22 May 2014	-	-	Yes

	Secretary of the Communist Party Committee			14 December 2020	-	-

	Chairman			29 December 2020	-	-

Ma Chongxian	Vice President	Male	56	8 April 2010	31 May 2021	-	Yes

	Vice Chairman			20 July 2021	-	-

	President			31 May 2021	-	-

	Deputy Secretary of the Communist Party Committee			11 May 2021	-	-

Feng Gang	Deputy Secretary of the Communist Party Committee	Male	58	19 November 2019	-	-	Yes

	Non-executive Director			26 May 2020	-	-

Patrick Healy	Non-executive Director	Male	56	19 December 2019	-	-	Yes

Xue Yasong	Employee Representative Director	Male	60	29 March 2018	25 February 2022	82.81	No

	Chairman of the Labour Union			31 October 2016	15 December 2021	-

Wang Xiaokang	Independent Non-executive Director	Male	66	25 May 2017	9 February 2021	1	No

Duan Hongyi	Independent Non-executive Director	Male	58	26 May 2020	25 February 2022	-	No

Stanley Hui Hon-chung	Independent Non-executive Director	Male	71	22 May 2015	25 February 2022	20	No

Li Dajin	Independent Non-executive Director	Male	63	22 December 2015	25 February 2022	20	No

Li Fushen	Independent Non-executive Director	Male	59	25 February 2022	-	-	No

He Yun	Independent Non-executive Director	Male	60	25 February 2022	-	-	No

Xu Junxin	Independent Non-executive Director	Male	57	25 February 2022	-	-	No

Winnie Tam Wan-chi	Independent Non-executive Director	Female	60	25 February 2022	-	-	No

Zhao Xiaohang	Vice President	Male	60	22 February 2011	25 February 2022	-	Yes

	Chairman of the Supervisory Committee			19 December 2019	25 February 2022	-

He Chaofan	Supervisor	Male	59	29 October 2013	-	-	Yes

	Chairman of the Supervisory Committee			25 February 2022	-

Wang Jie	Employee Representative Supervisor	Male	56	25 September 2020	-	85.73	No

Qin Hao	Employee Representative Supervisor	Male	53	25 September 2020	-	78.53	No

Lyu Yanfang	Supervisor	Female	50	18 December 2020	-	65.13	No

Guo Lina	Supervisor	Female	51	25 February 2022	-	-	No

Tan Huanmin	Secretary of Committee for Discipline Inspection	Male	57	19 January 2019	-	-	Yes

Wang Mingyuan	Vice President	Male	56	22 February 2011	-	-	Yes

Zhang Sheng	Vice President	Male	49	9 June 2020	-	-	Yes

Chen Zhiyong	Vice President	Male	58	17 December 2012	-	-	Yes

Chai Weixi	Vice President	Male	59	14 March 2012	-	96.79	No

Xu Chuanyu	Chief Safety Officer	Male	57	17 December 2012	-	137.06	No

Zhang Hua	General Counsel	Male	56	9 August 2017	-	95.77	No

Xiao Feng	Chief Accountant	Male	53	28 July 2014	-	94.89	No

Wang Yingnian	Chief Pilot	Male	58	27 November 2014	-	136.13	No

Ni Jiliang	Chief Engineer	Male	55	21 January 2020	-	94.24	No

Yan Simeng	Chief Information Officer	Male	39	7 September 2021	-	46.61	No

Zhou Feng	Secretary to the Board	Male	60	30 August 2017	30 September 2021	40.97	No

Huang Bin	Secretary to the Board	Male	58	30 September 2021	-	24.41	No

	Assistant to the President			10 December 2021	-

Shao Bin	Assistant to the President	Male	56	14 March 2012	8 November 2021	205.89	No

Zhao Yang	Assistant to the President	Male	54	27 October 2017	-	146.80	No

Total	/	/	/	/	/	1,472.76	/

Address:	Air China Headquarter, 30 Tian Zhu Road, Airport Industrial Zone, Beijing, 101312
Email:	ir@airchina.com
Telephone number:	86-10-61462560
Fax number:	86-10-61462805

Category of shares	Number of shares	Percentage of the total share capital


A Shares	9,962,131,821	68.59%

H Shares	4,562,683,364	31.41%

Total	14,524,815,185	100.00%

Name	Type of interests	Type and number of shares held by the Company	Percentage of the total issued shares of the Company	Percentage of the total issued A shares of the Company	Percentage of the total issued H shares of the Company	Short positions


CNAHC	Beneficial owner	5,952,236,697 A Shares	40.98%	59.75%	-	-

CNAHC⁽¹⁾	Equity attributable	1,332,482,920 A Shares	9.17%	13.38%	-	-

CNAHC⁽¹⁾	Equity attributable	223,852,000 H Shares	1.54%	-	4.91%	-

CNACG	Beneficial owner	1,332,482,920 A Shares	9.17%	13.38%	-	-

CNACG	Beneficial owner	223,852,000 H Shares	1.54%	-	4.91%	-

Cathay Pacific	Beneficial owner	2,633,725,455 H Shares	18.13%	-	57.72%	-

Swire Pacific Limited⁽²⁾	Equity attributable	2,633,725,455 H Shares	18.13%	-	57.72%	-

John Swire & Sons (H.K.) Limited⁽²⁾	Equity attributable	2,633,725,455 H Shares	18.13%	-	57.72%	-

John Swire & Sons Limited⁽²⁾	Equity attributable	2,633,725,455 H Shares	18.13%	-	57.72%	-


Total number of holders of ordinary shares as at the end of the Reporting Period (account)	120,745 accounts, of which 3,040 accounts are registered holders of H Shares
Total number of holders of ordinary shares as at the end of the month preceding to the disclosing date of the annual report (account)	111,460 accounts, of which 3,203 accounts are registered holders of H Shares

	2021		2020
(in RMB'000)	Amount	Percentage	Amount	Percentage	Change


Mainland China	53,974,171	92.56%	45,307,186	81.30%	19.13%

Hong Kong SAR, Macau SAR and Taiwan, China	859,594	1.47%	777,411	1.40%	10.57%

Europe	1,299,608	2.23%	3,567,703	6.40%	(63.57%)

North America	717,278	1.23%	1,955,890	3.51%	(63.33%)

Japan and Korea	344,866	0.59%	1,345,339	2.41%	(74.37%)

Asia Pacific and others	1,121,178	1.92%	2,773,333	4.98%	(59.57%)

Total	58,316,695	100.00%	55,726,862	100.00%	4.65%

	2021		2020
(in RMB'000)	Amount	Percentage	Amount	Percentage	Change


Jet fuel costs	20,703,780	21.69%	14,817,474	17.43%	39.73%

Take-off, landing and depot charges	9,667,650	10.13%	9,239,943	10.87%	4.63%

Depreciation and amortisation	20,934,502	21.93%	20,408,317	24.00%	2.58%

Aircraft maintenance, repair and overhaul costs	6,910,741	7.24%	6,423,313	7.55%	7.59%

Employee compensation costs	24,230,071	25.38%	22,012,834	25.89%	10.07%

Air catering charges	1,650,028	1.73%	1,605,027	1.89%	2.80%

Selling and marketing expenses	2,576,346	2.70%	2,568,362	3.02%	0.31%

General and administrative expenses	1,263,044	1.32%	1,051,495	1.24%	20.12%

Others	7,528,446	7.88%	6,902,750	8.12%	9.06%

Total	95,464,608	100.00%	85,029,515	100.00%	12.27%

	31 December 2021		31 December 2020
(in RMB'000)	Amount	Percentage	Amount	Percentage	Change


RMB	139,158,663	75.46%	109,420,080	67.96%	27.18%

US dollars	43,949,421	23.84%	49,669,410	30.85%	(11.52%)

Others	1,294,474	0.70%	1,902,083	1.19%	(31.94%)

Total	184,402,558	100.00%	160,991,573	100.00%	14.54%


Unit: Share

Shareholdings of the top 10 shareholders
Name of shareholder (full name)	Change(s) during the Reporting Period	Number of shares held as at the end of the Reporting Period	Shareholding percentage (%)	Number of shares held subject to selling restrictions	Shares pledged, marked or frozen		Nature of shareholder
Name of shareholder (full name)	Change(s) during the Reporting Period	Number of shares held as at the end of the Reporting Period	Shareholding percentage (%)	Number of shares held subject to selling restrictions	Status	Number	Nature of shareholder


China National Aviation Holding Corporation Limited	0	5,952,236,697	40.98	0	Frozen	127,445,536	State-owned legal person

Cathay Pacific Airways Limited	0	2,633,725,455	18.13	0	Nil	0	Foreign legal person

HKSCC NOMINEES LIMITED	399,977	1,688,134,365	11.62	0	Nil	0	Foreign legal person

China National Aviation Corporation (Group) Limited	0	1,556,334,920	10.72	0	Frozen	36,454,464	Foreign legal person

China National Aviation Fuel Group Corporation	(40,910,035)	425,673,067	2.93	0	Nil	0	State-owned legal person

China Securities Finance Corporation Limited	0	311,302,365	2.14	0	Nil	0	State-owned legal person

Hong Kong Securities Clearing Company Limited	(78,569,831)	75,987,042	0.52	0	Nil	0	Foreign legal person

Agricultural Bank of China Limited - Guangfa Balanced Preferred Hybrid Securities Investment Fund ( 中 )	67,263,829	67,263,829	0.46	0	Nil	0	Domestic non-State-owned legal person

Industrial Bank Co. Ltd. - Guangfa Stable Preferred Six-Month Holding Period Hybrid Securities Investment Fund ( 興 )	33,734,114	33,734,114	0.23	0	Nil	0	Domestic non-State-owned legal person

China Construction Bank Corporation - Guangfa Value Leadership Hybrid Securities Investment Fund ( 中 )	28,410,985	28,410,985	0.20	0	Nil	0	Domestic non-State-owned legal person

Shareholdings of the top 10 shareholders not subject to selling restrictions
Name of shareholder	Number of tradable shares held not subject to selling restrictions	Class and number of shares
Name of shareholder		Class	Number


China National Aviation Holding Corporation Limited	5,952,236,697	RMB ordinary shares	5,952,236,697

Cathay Pacific Airways Limited	2,633,725,455	Overseas listed foreign shares	2,633,725,455

HKSCC NOMINEES LIMITED	1,688,134,365	Overseas listed foreign shares	1,688,134,365

China National Aviation Corporation (Group) Limited	1,556,334,920	RMB ordinary shares	1,332,482,920

		Overseas listed foreign shares	223,852,000

China National Aviation Fuel Group Corporation	425,673,067	RMB ordinary shares	425,673,067

China Securities Finance Corporation Limited	311,302,365	RMB ordinary shares	311,302,365

Hong Kong Securities Clearing Company Limited	75,987,042	RMB ordinary shares	75,987,042

Agricultural Bank of China Limited - Guangfa Balanced Preferred Hybrid Securities Investment Fund ( 中 )	67,263,829	RMB ordinary shares	67,263,829

Industrial Bank Co. Ltd. - Guangfa Stable Preferred Six-Month Holding Period Hybrid Securities Investment Fund ( 興 )	33,734,114	RMB ordinary shares	33,734,114

China Construction Bank Corporation - Guangfa Value Leadership Hybrid Securities Investment Fund ( 中 )	28,410,985	RMB ordinary shares	28,410,985

Explanation on the repurchase special accounts among the top 10 shareholders	Nil

Explanation on the right to vote by proxy, proxy and abstention from voting among the above shareholders	Nil

Explanation on connected relationship or action in concert among the above shareholders	CNACG is a wholly-owned subsidiary of CNAHC. Accordingly, CNAHC is directly and indirectly interested in 51.70% of the shares of the Company.

Explanation on preference shareholders whose voting rights have been restored and the number of shares held	Nil

Name	Date of election and if applicable, leaving office as Director


Song Zhiyong (Chairman and executive Director)	Elected as executive Director on 22 May 2014 and as Vice Chairman on 6 June 2016, elected as Chairman on 29 December 2020

Ma Chongxian (President, Vice Chairman and executive Director)	Elected as President on 31 May 2021 and as executive Director on 20 July 2021

Feng Gang (Non-executive Director)	Elected on 26 May 2020

Patrick Healy (Non-executive Director)	Elected on 19 December 2019

Xue Yasong (Then non-executive Director and employee representative Director)	Elected on 29 March 2018, retired on 25 February 2022

Wang Xiaokang (Then independent non-executive Director)	Elected on 25 May 2017, resigned on 9 February 2021

Duan Hongyi (Then independent non-executive Director)	Elected on 26 May 2020, retired on 25 February 2022

Stanley Hui Hon-chung (Then independent non-executive Director)	Elected on 22 May 2015, retired on 25 February 2022

Li Dajin (Then independent non-executive Director)	Elected on 22 December 2015, retired on 25 February 2022

Li Fushen (Independent non-executive Director)	Elected on 25 February 2022

He Yun (Independent non-executive Director)	Elected on 25 February 2022

Xu Junxin (Independent non-executive Director)	Elected on 25 February 2022

Winnie Tam Wan-chi (Independent non-executive Director)	Elected on 25 February 2022

Name	Date of election and if applicable, leaving office as Supervisor


Zhao Xiaohang (Then Chairman of the Supervisory Committee)	Elected on 19 December 2019, retired on 25 February 2022

He Chaofan (Chairman of the Supervisory Committee)	Elected on 29 October 2013

Wang Jie (Employee representative Supervisor)	Elected on 25 September 2020

Qin Hao (Employee representative Supervisor)	Elected on 25 September 2020

Lyu Yanfang	Elected on 18 December 2020

Guo Lina	Elected on 25 February 2022

Professional Categories	As at 31 December 2021	As at 31 December 2020	Increase/(Decrease)


Management	10,856	11,001	(145)

Marketing and Sales	5,337	6,277	(940)

Operation	4,531	4,705	(174)

Ground Handling	11,698	11,278	420

Cabin Service	23,382	23,619	(237)

Logistics and Support	6,964	7,323	(359)

Flight Crew	10,644	9,632	1,012

Engineering and Maintenance	13,146	13,628	(482)

Information Technology	809	820	(11)

Others	1,028	1,090	(62)

Total	88,395	89,373	(978)

		Total amount for the Reporting Period
	Currency	Annual cap	Actual amount
		(in millions)	(in millions)


Transactions with CNAHC Group:

Charter flight services	RMB	900	365

Comprehensive services	RMB	3,000	1,123

Total value of right-of-use assets involved in property leasing	RMB	620	92

Media and advertising services	RMB	750	152

Expenditure on construction project management services	RMB	130	34

Financial services

Maximum daily balance of loans and other credit services granted by CNAF to CNAHC Group	RMB	6,500	90

Transactions with CNACG Group:

Ground handling and other services	RMB	696	91

Total value of right-of-use assets involved in financing and operating leasing	RMB	16,000	3,526

Transactions with Cathay Pacific Group:

Aggregate amount payable/paid by the Group to Cathy Pacific Group	HKD	900	20

Aggregate amount payable/paid by Cathay Pacific Group to the Group	HKD	900	39

Transactions with ACC Group:

Operation expenses of bellyhold space paid by the Group to ACC Group	RMB	960	609

Aggregate amount of ground handling and other services paid by the Group to ACC Group	RMB	1,200	630

Bellyhold space business contracting operation paid by ACC Group to the Group⁽¹⁾	RMB	11,000	10,491

Aggregate amount of ground handling and other services paid by ACC Group to the Group	RMB	1,000	789

Transactions with CNAF:

Maximum daily balance of deposits placed by the Group with CNAF	RMB	15,000	10,798


Unit: RMB billion, Currency: RMB

Name of Corporate Bond	Abbreviation	Code	Issue Date	Value Date	Expiry Date	Balance of the Bond	Interest Rate (%)	Payment of principal and interest	Investor suitability arrangement (if any)	Trading Mechanism


Air China Limited 2012 Corporate Bond (First Tranche)	12AC01	122218	18 January 2013	18 January 2013	18 January 2023	5.243	5.10	Interest on annual basis Repayment of principal on maturity	Issued to public and institutional investors	Listed and traded on the Auction Trading System and Fixed Income Platform of SSE

Air China Limited 2012 Corporate Bond (Second Tranche)	12AC03	122269	16 August 2013	16 August 2013	16 August 2023	1.530	5.30	Interest on annual basis Repayment of principal on maturity	Issued to public and institutional investors	Listed and traded on the Auction Trading System and Fixed Income Platform of SSE

Shenzhen Airlines Company Limited 2019 Corporate Bond (First Tranche)	19SA01	155388	25 April 2019	26 April 2019	26 April 2022	1.027	4.00	Interest on annual basis Repayment of principal on maturity	Issued to qualified investors only	Listed and traded on the Auction Trading System and Fixed Income Platform of SSE

Shenzhen Airlines Company Limited 2021 Public Offering of Short-term Corporate Bond for Professional Investors (First Tranche)	21SAD1	149379	4 February 2021	5 February 2021	5 February 2022	0.514	3.09	Payment of principal and interest on maturity	For institutional investors among professional investors only	Bilateral listed and traded on the Centralized Bidding System and Integrated Agreement Trading Platform of SZSE

Shenzhen Airlines Company Limited 2021 Non-public Offering Short-term Corporate Bond (First Tranche)	21SAD2	133010	3 June 2021	4 June 2021	4 June 2022	2.036	3.10	Payment of principal and interest on maturity	For not more than 200 institutional investors among professional investors only	Listed and Transfered on the Integrated Agreement Trading Platform of SZSE


Unit: RMB billion, Currency: RMB

Name of Bond	Abbreviation	Code	Issue Date	Value Date	Expiry Date	Balance of the Bond	Interest Rate (%)	Payment of principal and interest


Air China Limited 2021 Super Short-term Commercial Paper (First Tranche)	21ACSCP001	012103630	8 October 2021	8 October 2021	8 April 2022	2.011	2.42	One-off payment of principal and interest on maturity

Air China Limited 2021 Super Short-term Commercial Paper (Second Tranche)	21ACSCP002	012103651	11 October 2021	11 October 2021	8 July 2022	1.005	2.43	One-off payment of principal and interest on maturity

Air China Limited 2021 Super Short-term Commercial Paper (Third Tranche)	21ACSCP003	012103822	20 October 2021	21 October 2021	19 January 2022	1.758	2.34	One-off payment of principal and interest on maturity

Air China Limited 2021 Super Short-term Commercial Paper (Fourth Tranche)	21ACSCP004	012103867	22 October 2021	25 October 2021	22 July 2022	1.005	2.5	One-off payment of principal and interest on maturity

Air China Limited 2021 Super Short-term Commercial Paper (Fifth Tranche)	21ACSCP005	012105420	15 December 2021	16 December 2021	14 June 2022	2.002	2.34	One-off payment of principal and interest on maturity

Air China Limited 2021 Super Short-term Commercial Paper (Sixth Tranche)	21ACSCP006	012105483	21 December 2021	22 December 2021	16 September 2022	2.001	2.49	One-off payment of principal and interest on maturity

Shenzhen Airlines Company Limited 2019 Medium Term Note (First Tranche)	19SAMTN001	101900344	14 March 2019	18 March 2019	18 March 2022	1.030	3.73	Interest on annual basis Repayment of principal on maturity

Shenzhen Airlines Company Limited 2019 Medium Term Note (Second Tranche)	19SAMTN002	101900725	21 May 2019	23 May 2019	23 May 2022	1.023	3.79	Interest on annual basis Repayment of principal on maturity

Shenzhen Airlines Company Limited 2020 Medium Term Note (First Tranche) (i.e. Bond for COVID-19 prevention and control)	20SAMTN001(Bond for COVID-19 prevention and control)	102000224	3 March 2020	5 March 2020	5 March 2023	1.024	3.00	Interest on annual basis Repayment of principal on maturity

Shenzhen Airlines Company Limited 2021 Medium Term Note (First Tranche)	21SAMTN001	102101631	19 August 2021	23 August 2021	23 August 2024	2.023	3.2	Interest on annual basis Repayment of principal on maturity

Name of Bond	Payment of Principal and Interest


Shenzhen Airlines Company Limited 2021 Super Short-term Commercial Paper (First Tranche)	On 9 July 2021, Shenzhen Airlines completed the payment of principal and interest on "21SASCP001" Super Short-term Commercial Paper

Shenzhen Airlines Company Limited 2021 Super Short-term Commercial Paper (Second Tranche)	On 26 August 2021, Shenzhen Airlines completed the payment of principal and interest on "21SASCP002" Super Short-term Commercial Paper

Shenzhen Airlines Company Limited 2021 Super Short-term Commercial Paper (Third Tranche)	On 31 August 2021, Shenzhen Airlines completed the payment of principal and interest on "21SASCP003" Super Short-term Commercial Paper

Shenzhen Airlines Company Limited 2021 Super Short-term Commercial Paper (Fourth Tranche)	On 1 September 2021, Shenzhen Airlines completed the payment of principal and interest on "21SASCP004" Super Short-term Commercial Paper

Shenzhen Airlines Company Limited 2019 Medium Term Note (First Tranche)	On 1 March 2021, Shenzhen Airlines completed the interest payment on "19SAMTN001" Medium Term Note

Shenzhen Airlines Company Limited 2019 Medium Term Note (Second Tranche)	On 23 May 2021, Shenzhen Airlines completed the interest payment on "19SAMTN002" Medium Term Note

Shenzhen Airlines Company Limited 2020 Medium Term Note (First Tranche) (i.e. Bond for COVID-19 prevention and control)	On 5 March 2021, Shenzhen Airlines completed the interest payment on "20SAMTN001(Bond for COVID-19 prevention and control)" Medium Term Note

Key audit matter	How our audit addressed the key audit matter

Provision for major overhauls
As at 31 December 2021, the provision for major overhauls of RMB6,373 million was recorded in the consolidated statement of financial position. The Group held certain aircraft under leases at 31 December 2021. Under the terms of the lease arrangements, the Group is contractually committed to return the aircraft to the lessors in a certain condition agreed with the lessors at the inception of each lease. In order to fulfil these return conditions, major overhauls are required to be conducted on a regular basis. Management estimates the maintenance costs of major overhauls for aircraft held under leases at the end of each reporting period and accrues such costs over the lease terms. The calculation of such costs includes a number of variable factors and assumptions, including the anticipated utilisation of the aircraft and the expected costs of maintenance. We identified provision for major overhauls to fulfil the return condition of aircraft under leases as a key audit matter because of the significant management estimation and judgement required in assessing the variable factors and assumptions in order to quantify the amount of provision required at each reporting date. Details of the related estimation uncertainty are set out in Notes 4, 5 and 38 to the consolidated financial statements.	Our procedures in relation to provision for major overhauls to fulfil the return condition of aircraft under leases included: · Testing and evaluating the design and operating effectiveness of the key internal controls relevant to the audit of provision for major overhauls to fulfil the return condition of aircraft under leases. · Evaluating the appropriateness of the methodology and key assumptions adopted by management in estimating the provision for these major overhauls. This evaluation based on the terms of the leases and the Group's maintenance cost experience. · Performing a retrospective review of the provision for major overhauls to evaluate the appropriateness of the assumptions adopted by management by comparing the assumptions adopted by management in prior years with actual maintenance costs incurred. · Discussing with managers in the engineering department responsible for aircraft engineering about the utilisation pattern of aircraft, obtaining relevant operating data, performing recalculation and checking the assumptions adopted by management and the mathematical accuracy of the calculation of provision for major overhauls prepared by management for those aircraft under leases.

Key audit matter	How our audit addressed the key audit matter

Passenger revenue recognition
The Group's revenue primarily consists of passenger revenue amounting to RMB58,317 million for the year ended 31 December 2021. Passenger revenue are recognised as revenue when the related transportation service is provided. The value of passenger revenue for which the related transportation service has not yet been provided at the end of the reporting period is recorded as air traffic liabilities in the consolidated statement of financial position. The Group allocates the transaction price to passenger revenue and miles awards on a relative stand-alone selling price basis. The transaction price allocated to miles awards under the Group's frequent-flyer programme is deferred and included in contract liabilities in the consolidated statement of financial position. The Group maintains complex information technology ("IT") systems in order to track the point of service provision for each sale and also to track the issuance and subsequent redemption and utilisation and expiry of frequent-flyer programme awards. We identified passenger revenue recognition as a key audit matter because revenue is one of the key performance indicators of the Group and because it involves complex IT systems and an estimation of the stand-alone selling price of miles in the frequent-flyer programme, both of which give rise to an inherent risk that revenue could be recorded in the incorrect period or could be subject to management manipulation. Details of passenger revenue are set out in Notes 4, 5, and 6 to the consolidated financial statements.	Our procedures in relation to passenger revenue recognition included: · Testing and evaluating the design and operating effectiveness of the key internal controls, including IT controls, relevant to our audit of passenger revenue recognition. · Performing substantive analytical procedures on passenger revenue by developing an expectation for passenger revenue using independent inputs and information generated from the Group's IT systems and to obtain evidence to support the reasonableness of the amounts recorded. · Evaluating the appropriateness of the assumptions adopted by management in estimating the stand-alone selling price of miles in the frequent-flyer programme by comparison with historical experience and planned changes to the programme that may impact future redemption activities. · Checking underlying supporting documents for passenger revenue transactions which are material or meet other specified criteria on a sample basis.

		2021	2020
	NOTES	RMB'000	RMB'000


Revenue	6	74,531,670	69,503,749
Other income and gains	8	4,070,762	4,356,946


		78,602,432	73,860,695


Operating expenses
Jet fuel costs		(20,703,780)	(14,817,474)
Employee compensation costs	9	(24,230,071)	(22,012,834)
Depreciation and amortisation	11	(20,934,502)	(20,408,317)
Take-off, landing and depot charges		(9,667,650)	(9,239,943)
Aircraft maintenance, repair and overhaul costs		(6,910,741)	(6,423,313)
Air catering charges		(1,650,028)	(1,605,027)
Aircraft and engine lease expenses		(236,287)	(223,034)
Other lease expenses		(673,261)	(463,265)
Other flight operation expenses		(6,488,734)	(5,869,393)
Selling and marketing expenses		(2,576,346)	(2,568,362)
General and administrative expenses		(1,263,044)	(1,051,495)
Impairment loss recognised on property, plant and equipment	17	(292,562)	(439,656)
Impairment loss recognised on intangible assets	20	(750)	-
Net impairment loss reversed under expected credit loss model	10	163,148	92,598


		(95,464,608)	(85,029,515)


Loss from operations	11	(16,862,176)	(11,168,820)
Finance income		112,062	191,598
Finance costs	12	(5,495,052)	(5,099,785)
Share of results of associates		(1,088,759)	(6,148,692)
Share of results of joint ventures		272,965	155,541
Exchange gain, net		1,235,430	3,603,752


Loss before taxation		(21,825,530)	(18,466,406)
Income tax credit	14	3,003,292	2,650,275


Loss for the year		(18,822,238)	(15,816,131)


Attributable to:
- Equity shareholders of the Company		(16,635,178)	(14,403,343)
- Non-controlling interests		(2,187,060)	(1,412,788)


		(18,822,238)	(15,816,131)


Loss per share
- Basic and diluted	15	RMB(121.12) cents	RMB(104.87) cents

		Attributable to equity shareholders of the Company

							Foreign exchange			Non-
		Issued	Treasury	Capital	Reserve	General	translation	Retained		controlling	Total
	Note	capital	shares	reserve	funds	reserve	reserve	earnings	Total	interests	equity
		RMB'000	RMB'000	RMB'000	RMB'000	RMB'000	RMB'000	RMB'000	RMB'000	RMB'000	RMB'000


As at 1 January 2020		14,524,815	(3,047,564)	29,916,386	11,026,605	110,628	(1,223,899)	42,151,706	93,458,677	7,870,786	101,329,463
Changes in equity for 2020
Loss for the year		-	-	-	-	-	-	(14,403,343)	(14,403,343)	(1,412,788)	(15,816,131)
Other comprehensive income/(expense)		-	-	230,112	-	-	(1,087,137)	-	(857,025)	(29,840)	(886,865)


Total comprehensive income/(expense)		-	-	230,112	-	-	(1,087,137)	(14,403,343)	(15,260,368)	(1,442,628)	(16,702,996)


Appropriation of discretionary reserve funds and others		-	-	-	537,682	-	-	(549,472)	(11,790)	(3,944)	(15,734)
Dividends paid to non-controlling shareholders		-	-	-	-	-	-	-	-	(192,505)	(192,505)
Dividends declared in respect of the previous year	16	-	-	-	-	-	-	(645,192)	(645,192)	-	(645,192)


As at 31 December 2020 and 1 January 2021		14,524,815	(3,047,564)	30,146,498	11,564,287	110,628	(2,311,036)	26,553,699	77,541,327	6,231,709	83,773,036


Changes in equity for 2021
Loss for the year		-	-	-	-	-	-	(16,635,178)	(16,635,178)	(2,187,060)	(18,822,238)
Other comprehensive income/(expense)		-	-	906,826	-	-	(444,185)	-	462,641	(45,539)	417,102


Total comprehensive income/(expense)		-	-	906,826	-	-	(444,185)	(16,635,178)	(16,172,537)	(2,232,599)	(18,405,136)


Capital contribution from non-controlling shareholder of a subsidiary		-	-	-	-	-	-	-	-	490,148	490,148
Appropriation of discretionary reserve funds and others		-	-	-	-	-	-	(233)	(233)	(155)	(388)
Appropriation of general reserve		-	-	-	-	21,288	-	(21,288)	-	-	-
Dividends paid to non-controlling shareholders		-	-	-	-	-	-	-	-	(26,549)	(26,549)
Others		-	-	3,637	-	-	-	(3,637)	-	-	-


As at 31 December 2021		14,524,815	(3,047,564)	31,056,961	11,564,287	131,916	(2,755,221)	9,893,363	61,368,557	4,462,554	65,831,111

IFRS 17	Insurance Contracts and the related Amendments²
Amendments to IFRS 3	Reference to the Conceptual Framework¹
Amendments to IFRS 10 and IAS 28	Sale or Contribution of Assets between an Investor and its Associate or Joint Venture³
Amendments to IAS 1	Classification of Liabilities as Current or Non-current²
Amendments to IAS 1 and IFRS Practice Statement 2	Disclosure of Accounting Policies²
Amendments to IAS 8	Definition of Accounting Estimates²
Amendments to IAS 12	Deferred Tax related to Assets and Liabilities arising from a Single Transaction²
Amendments to IAS 16	Property, Plant and Equipment: Proceeds before Intended Use¹
Amendments to IAS 37	Onerous Contracts-Cost of Fulfilling a Contract¹
Amendments to IFRSs	Annual Improvements to IFRS Standards 2018-2020¹

	2021		2020
Segments	Airline operations	Other operations	Airline operations	Other operations
	RMB'000	RMB'000	RMB'000	RMB'000


Type of goods or services
Airline operations
Passenger	58,316,695	-	55,726,862	-
Cargo and mail	11,113,288	-	8,553,407	-
Ground service income	202,812	-	239,713	-
Others	1,364,285	-	1,565,162	-


	70,997,080	-	66,085,144	-


Other operations
Aircraft engineering income	-	2,901,247	-	2,771,588
Others	-	346,592	-	388,198


	-	3,247,839	-	3,159,786


Total	70,997,080	3,247,839	66,085,144	3,159,786


Geographical markets
Mainland China	57,299,361	3,247,839	48,535,069	3,159,786
Hong Kong, Special Administrative
Region ("SAR"), Macau SAR and
Taiwan, China	1,172,112	-	1,032,767	-
International	12,525,607	-	16,517,308	-


Total	70,997,080	3,247,839	66,085,144	3,159,786

	Airline operations	Other operations	Elimination	Total
	RMB'000	RMB'000	RMB'000	RMB'000


Revenue
Sales to external customers	71,283,831	3,247,839	-	74,531,670
Inter-segment sales	166,623	5,846,246	(6,012,869)	-


Revenue for reportable segments under CASs and IFRSs	71,450,454	9,094,085	(6,012,869)	74,531,670


Segment loss before taxation
Loss before taxation for reportable segments under CASs	(21,687,315)	(93,034)	(54,690)	(21,835,039)


Effect of differences between IFRSs and CASs				9,509


Loss before taxation for the year under IFRSs				(21,825,530)

					Effect of
	Airline	Other			differences between IFRSs	Amounts
	operations	operations	Elimination	Total	and CASs	under IFRSs
	RMB'000	RMB'000	RMB'000	RMB'000	RMB'000	RMB'000


Other segment information

Share of (losses)/profit of associates and joint ventures	(1,106,530)	290,736	-	(815,794)	-	(815,794)
Impairment losses reversed/(recognized) on financial assets	169,463	(15,185)	8,870	163,148	-	163,148
Impairment losses recognised on non-financial assets	302,661	34,773	-	337,434	-	337,434
Depreciation and amortisation	20,668,858	408,365	(131,171)	20,946,052	(11,550)	20,934,502
Income tax (credit)/expense	(2,983,013)	(16,140)	(6,516)	(3,005,669)	2,377	(3,003,292)
Interests in associates and joint ventures	10,078,844	2,067,736	(65,489)	12,081,091	139,919	12,221,010
Additions to non-current assets	24,007,672	531,694	(14,077)	24,525,289	-	24,525,289

	Mainland	Hong Kong SAR, Macau SAR and
	China	Taiwan, China	International	Total
	RMB'000	RMB'000	RMB'000	RMB'000


Sales to external customers and total revenue	60,833,951	1,172,112	12,525,607	74,531,670

	Directors'	Salaries and other	Discretionary	Retirement benefit scheme
	fee	allowances	bonus	contributions	Total
	RMB'000	RMB'000	RMB'000	RMB'000	RMB'000


Executive directors
Song Zhiyong (Note (a))	-	-	-	-	-
Ma Chongxian (Note (a))(Appointed on 31 May 2021)	-	-	-	-	-


Non-executive directors
Patrick Healy (Note (b))	-	-	-	-	-
Xue Yasong	-	418	366	44	828
Feng Gang (Note (a))	-	-	-	-	-


	-	418	366	44	828


Independent non-executive directors
Wang Xiaokang (Resigned on 9 February 2021)	10	-	-	-	10
Stanley Hui Hon-chung	200	-	-	-	200
Li Dajin	200	-	-	-	200
Duan Hongyi	-	-	-	-	-


	410	-	-	-	410


Supervisors
Zhao Xiaohang (Note (a))	-	-	-	-	-
He Chaofan (Note (a))	-	-	-	-	-
Lyu Yanfang	-	481	117	53	651
Wang Jie	-	624	180	53	857
Qin Hao	-	590	143	53	786


	-	1,695	440	159	2,294


	410	2,113	806	203	3,532

	2021	2020


HKD2,000,001 to HKD2,500,000	2	5
HKD2,500,001 to HKD3,000,000	3	-


	5	5

	2021	2020
	'000	'000


Number of shares
Number of ordinary shares for the purpose of basic and diluted loss per share	13,734,961	13,734,961