FIRST QUARTERLY REPORT OF 2026

Summary by AI ^BETAClose X

Air China Limited reported a significant turnaround in its first quarter of 2026, with revenue increasing by 11.28% to RMB 44,536,441,000 compared to the same period last year. Total profit surged to RMB 1,897,348,000 from a loss of RMB 2,453,100,000 in the prior year, and net profit attributable to shareholders was RMB 1,714,097,000, a substantial improvement from a net loss of RMB 2,043,993,000. This positive performance is attributed to seizing market opportunities, optimizing route structures, and implementing cost control measures. Net cash flows from operating activities also saw a healthy increase of 9.71% to RMB 9,151,285,000.

Disclaimer*

Items	31 March 2026	31 December 2025
CURRENT ASSETS:
Cash and bank balance	15,994,646	15,859,324
Provisions on payables
Contributions made
Financial assets held-for-trading	121,591	151,633
Derivative financial assets
Bills receivable	11,574	12,516
Accounts receivable	4,259,872	3,480,157
Receivables financing
Prepayments	631,650	590,827
Premium receivable
Receivables on reinsurance
Provisions for reinsurance contracts
Other receivables	4,698,087	4,275,525
Including: Interest receivable
Dividend receivable
Purchase of financial assets resold
Inventories	5,222,193	4,809,698
Including: Data resources
Contract assets
Held-for-sale assets
Non-current assets due within a year
Other current assets	5,115,307	5,623,629
Total current assets	36,054,920	34,803,309
NON-CURRENT ASSETS:
Loans and advances
Debt investments
Other debt investments	1,044,478	1,093,435
Long-term receivables	728,635	735,200
Long-term equity investments	18,153,482	18,292,560
Investments in other equity instruments	1,909,596	1,926,616
Other non-current financial assets
Investment properties	287,274	291,001
Fixed assets	114,395,845	112,844,370
Construction in progress	34,624,779	34,331,014
Biological assets for production
Oil and gas assets
Right-of-use assets	114,981,300	116,551,531
Intangible assets	6,138,262	6,194,476
Including: Data resources
Development expenses
Including: Data resources
Goodwill	3,614,390	3,614,390
Long-term deferred expenses	296,784	325,628
Deferred tax assets	11,305,296	11,310,161
Other non-current assets	738,223	733,553
Total non-current assets	308,218,344	308,243,935
Total assets	344,273,264	343,047,244

CURRENT LIABILITIES:
Short-term loans	9,000,611	6,560,932
Short-term financing bonds payable	13,473,665	11,051,420
Borrowings from central bank
Contributions received
Financial liabilities held-for-trading
Derivative financial liabilities
Bills payable	496,901	1,500,000
Accounts payable	22,682,727	20,856,695
Air traffic liabilities	12,848,521	11,221,885
Receipts in advance	106,635	73,656
Contract liabilities	1,645,923	1,720,744
Sale of financial assets repurchased
Deposits from clients and placements from other banks
Brokerage payable
Underwriting fees payable
Employee compensation payable	3,165,483	4,178,271
Taxes payable	541,122	683,576
Other payables	12,254,866	13,420,424
Including: Interest payable
Dividend payable
Fees and commissions payable
Amounts payable on reinsurance
Held-for-sale liabilities
Non-current liabilities due within a year	48,811,658	46,024,492
Other current liabilities
Total current liabilities	125,028,112	117,292,095

NON-CURRENT LIABILITIES:
Reserves on insurance contracts
Long-term loans	54,430,588	60,858,057
Debentures payable	32,000,000	32,000,000
Including: Preference shares
Perpetual bonds
Lease liabilities	59,374,841	61,452,171
Long-term payables	24,724,332	24,293,835
Long-term employee compensation payables	169,575	168,765
Provisions	4,415,169	4,337,583
Deferred income	405,076	401,549
Deferred tax liabilities	140,027	137,992
Other non-current liabilities	2,851,050	2,873,684
Total non-current liabilities	178,510,658	186,523,636
Total liabilities	303,538,770	303,815,731

OWNERS' EQUITY (OR SHAREHOLDERS' EQUITY):
Paid-up capital (or share capital)	17,448,421	17,448,421
Other equity instruments
Including: Preference shares
Perpetual bonds
Capital reserve	46,286,645	46,113,911
Less: Treasury shares
Other comprehensive income	-716,493	-265,919
Special reserves
Surplus reserves	11,564,287	11,564,287
General risk provisions	177,506	177,506
Retained earnings	-30,772,534	-32,486,631
Total owners' equity (or shareholders' equity) attributable to the parent company	43,987,832	42,551,575
Non-controlling interests	-3,253,338	-3,320,062
Total owners' equity (or shareholders' equity)	40,734,494	39,231,513
Total liabilities and owners' equity (or shareholders' equity)	344,273,264	343,047,244

Items	First quarter of 2026	First quarter of 2025
I. Total revenue from operations	44,536,441	40,023,324
Including: Operating income	44,536,441	40,023,324
Interest income
Premium earned
Fees and commission income

II. Total operating cost	45,193,276	44,421,862
Including: Operating costs	41,033,705	39,813,278
Interest expenses
Fees and commission expenses
Returned premium
Net reimbursement paid
Net amounts of provisions on insurance obligations drawn
Bonus paid on insurance policy
Reinsurance premium
Taxes and other levies	111,536	100,635
Selling expenses	1,718,923	1,741,182
General and administrative expenses	1,320,854	1,328,732
R&D expenses	96,021	85,246
Finance expenses	912,237	1,352,789
Including: Interest expenses	1,213,540	1,472,135
Interest income	87,830	131,527
Add: Other income	1,224,947	1,170,042
Investment income (loss is represented by "-" sign)	1,198,322	710,259
Including: Share of profits of associates and joint ventures	1,183,229	699,425
Gains on derecognition of financial assets measured at amortised cost
Exchange gains (loss is represented by "-" sign)
Gains from net exposure to hedging (loss is represented by "-" sign)
Gains from changes in fair value (loss is represented by "-" sign)	-43	2
Impairment loss of credit (loss is represented by "-" sign)	5,265	-4,270
Impairment loss of assets (loss is represented by "-" sign)
Gains from disposal of assets (loss is represented by "-" sign)	-3,175	8,908
III. Profit from operations (loss is represented by "-" sign)	1,768,481	-2,513,597
Add: Non-operating income	138,356	67,719
Less: Non-operating expenses	9,489	7,222

IV. Total profit (total loss is represented by "-" sign)	1,897,348	-2,453,100
Less: Income tax expenses	104,012	82,141

V. Net profit (net loss is represented by "-" sign)	1,793,336	-2,535,241
(I) Classified by continuity of operations
1. Net profit from continuing operations (net loss is represented by "-" sign)	1,793,336	-2,535,241
2. Net profit from discontinued operation (net loss is represented by "-" sign)
(II) Classified by ownership
1. Net profits attributable to shareholders of the parent company (net loss is represented by "-" sign)	1,714,097	-2,043,993
2. Profit or loss attributable to non-controlling interests (net loss is represented by "-" sign)	79,239	-491,248

VI. Other comprehensive income after tax, net	-463,089	-79,021
(I) Other comprehensive income after tax attributable to owners of the parent company, net	-450,574	-83,248
1. Other comprehensive income that cannot be subsequently reclassified to profit or loss	-8,385	10,416
(1) Changes arising on remeasurement of defined benefit plans
(2) Other comprehensive income accounted for using the equity method that cannot be reclassified to profit or loss	-1,899
(3) Change in fair value of investments in other equity instruments	-6,486	10,416
(4) Change in fair value of own credit risk of the Company
2. Other comprehensive income that will be reclassified to profit or loss	-442,189	-93,664
(1) Other comprehensive income accounted for using the equity method that may be reclassified to profit or loss	14,007
(2) Change in fair value of other debt investments	67	-5,423
(3) Amount of financial assets reclassified into other comprehensive income
(4) Provisions for credit impairment of other debt investments	-437	-76
(5) Reserve for cash flow hedging
(6) Exchange difference on translation of financial statements in foreign currency	-455,826	-88,165
(7) Others
(II) Other comprehensive income after tax attributable to non-controlling interests, net	-12,515	4,227

VII. Total comprehensive income	1,330,247	-2,614,262
(I) Total comprehensive income attributable to owners of the parent company	1,263,523	-2,127,241
(II) Total comprehensive income attributable to non-controlling interests	66,724	-487,021

VIII. Earnings per share:
(I) Basic earnings per share (RMB per share)	0.10	-0.12
(II) Diluted earnings per share (RMB per share)	0.10	-0.12

Items	First quarter of 2026	First quarter of 2025

I. Cash flows from operating activities:
Cash received from sales of goods and provision of services	48,947,531	40,353,061
Net increase in deposits from clients and placements from 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
Cash received from interest, fees and commission
Net increase in contributions received
Net increase in cash from repurchase operations
Net cash receipt from securities trading as agent
Refund of taxes and levies	5,491	65,572
Other cash received relating to operating activities	3,688,482	4,161,814
Subtotal of cash inflows of operating activities	52,641,504	44,580,447
Cash paid for goods purchased and services received	27,589,971	24,027,112
Net increase in loans and advances to clients
Net increase in deposits in central bank and other banks
Cash paid in respect of claims under original insurance contracts
Net increase in contributions made
Cash paid for interest, fees and commissions
Cash paid for bonus paid on insurance policy
Cash paid to or on behalf of employees	10,520,759	9,996,301
Taxes and levies paid	738,413	471,275
Other cash paid relating to operating activities	4,641,076	1,744,358
Subtotal of cash outflows from operating activities	43,490,219	36,239,046
Net cash flows from operating activities	9,151,285	8,341,401

II. Cash flows from investing activities:
Cash received from sale and redemption of investments	1,867,350	278,155
Cash received from investment income	17,192	24,759
Net cash proceeds from disposal of fixed assets, intangible assets and other long-term assets	20,863	74,873
Net cash proceeds from disposal of subsidiaries and other business units
Other cash received relating to investing activities	87,830	131,527
Subtotal of cash inflows from investing activities	1,993,235	509,314
Cash paid for purchase and construction of fixed assets, intangible assets and other long-term assets	7,051,321	4,140,915
Cash paid for investments	43,061	394,850
Net increase in secured loans
Net cash payments for acquisition of subsidiaries and other business units
Other cash paid relating to investing activities	737,113	187,800
Subtotal of cash outflows from investing activities	7,831,495	4,723,565
Net cash flows from investing activities	-5,838,260	-4,214,251

III. Cash flows from financing activities:
Cash received from issuance of debentures	4,400,000	9,000,000
Cash received from capital injection
Including: Cash received from capital injection of non-controlling shareholders in subsidiaries
Cash received from borrowings	8,806,894	17,119,947
Other cash received relating to financing activities
Subtotal of cash inflows from financing activities	13,206,894	26,119,947
Cash paid for repayment of borrowings	11,804,842	22,949,370
Cash paid for distribution of dividends, profits or payment of interest expenses	1,118,809	1,460,773
Including: Dividends and profits paid to non-controlling shareholders by subsidiaries
Cash paid for leases	4,211,020	5,116,290
Other cash paid relating to financing activities
Subtotal of cash outflows from financing activities	17,134,671	29,526,433
Net cash flows from financing activities	-3,927,777	-3,406,486

IV. Effect of exchange rate changes on cash and cash equivalents	-53,242	11,726

V. Net increase in cash and cash equivalents	-667,994	732,390
Add: Balance of cash and cash equivalents as at the beginning of the Period	14,295,268	21,039,472

VI. Balance of cash and cash equivalents as at the end of the Period	13,627,274	21,771,862

Companies

Air China Ltd. (AIRC)

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	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	344,273,264	343,047,244	0.36
Owners' equity attributable to shareholders of the listed company	43,987,832	42,551,575	3.38

Items of non-recurring profits and losses	Amounts for the Period	Explanation

Gains or losses on disposal of non-current assets, including provision for asset impairment being written off	-6,108
Government subsidies recorded in profit or loss for the current period (excluding those closely related to the Company's normal business operations, in compliance with national policies and regulations, are granted in accordance with established standards and have a continuing effect on the Company's profit or loss)	48,313
Gain or loss from change in fair value arising from holding financial assets and financial liabilities by non-financial enterprises, and gain or loss arising from disposal of financial assets and financial liabilities, excluding the effective hedging businesses related to the normal operations of the Company	-43
Capital occupancy fee from non-financial enterprises recognised through current profit or loss
Profit or loss from entrusting others to invest or manage assets
Profit or loss from externally entrusted loans
Loss of assets due to force majeure factors, such as natural disasters
Reversal of provision for impairment of receivable that has undergone impairment test alone	4,289
Profit and loss from disposal of long-term equity investment	185,771
Gains arising from the investment costs for acquisition of subsidiaries, associates and joint ventures being less than the fair value of attributable identifiable net assets of such investees at the time of acquisition
Current net profit or loss of subsidiaries from business combination under common control from the beginning of the period to the date of combination
Profit or loss from exchange of non-monetary assets

Items of non-recurring profits and losses	Amounts for the Period	Explanation

Profit or loss from debt restructuring
One-time costs incurred by the enterprise due to the fact that the relevant business activities are no longer continuing, such as expenses for relocating employees
One-time effect on current profit or loss due to adjustments in tax, accounting and other laws and regulations
One-time share-based payment expense recognized for cancellation and modification of equity incentive plans
Gain or loss from changes in fair values of employee benefits payable for cash-settled share-based payments after the exercise date
Profit or loss from changes in fair value of investment properties subsequently measured using the fair value model
Gains arising from transactions at significantly unfair prices
Profit or loss arising from contingencies irrelevant to the normal business operations of the company
Trusteeship fee income from entrusted operations
Other non-operating income and expenses other than the above items	131,800
Other profit and loss items that meet the definition of non-recurring profit or loss
Less: Effect of income tax	7,288
Effect of non-controlling interests (after tax)	24,901

Total	331,833

Items	Percentage of Change (%)	Major Reasons

Total profit	177.34	Seizing market opportunities, the Company continued to optimize its route structure and achieved steady growth in production scale with a year-on-year increase in operating income. At the same time, it made every effort to promote refined cost control measures, resulting in a significant improvement in profitability for the Period.

Net profit attributable to shareholders of the listed company	183.86	Seizing market opportunities, the Company continued to optimize its route structure and achieved steady growth in production scale with a year-on-year increase in operating income. At the same time, it made every effort to promote refined cost control measures, resulting in a significant improvement in profitability for the Period.

Net profit attributable to shareholders of the listed company after deducting non-recurring profits and losses	164.96	Seizing market opportunities, the Company continued to optimize its route structure and achieved steady growth in production scale with a year-on-year increase in operating income. At the same time, it made every effort to promote refined cost control measures, resulting in a significant improvement in profitability for the Period.

Basic earnings per share (RMB per share)	183.33	Seizing market opportunities, the Company continued to optimize its route structure and achieved steady growth in production scale with a year-on-year increase in operating income. At the same time, it made every effort to promote refined cost control measures, resulting in a significant improvement in profitability for the Period.

Diluted earnings per share (RMB per share)	183.33	Seizing market opportunities, the Company continued to optimize its route structure and achieved steady growth in production scale with a year-on-year increase in operating income. At the same time, it made every effort to promote refined cost control measures, resulting in a significant improvement in profitability for the Period.

Name of shareholder	Nature of shareholder	Number of shares held	Shareholding percentage	Number of shares held subject to selling restrictions	Shares pledged, marked or frozen Status Number
			(%)

China National Aviation Holding Corporation Limited	State-owned legal person	7,421,462,701	42.53	854,700,854	Frozen	127,445,536
Cathay Pacific Airways Limited	Foreign legal person	2,633,725,455	15.09	0	Nil	0
China National Aviation Corporation (Group) Limited	Foreign legal person	1,949,262,228	11.18	392,927,308	Frozen	36,454,464
HKSCC NOMINEES LIMITED	Foreign legal person	1,691,166,370	9.69	0	Nil	0
China National Aviation Fuel Group Limited	State-owned legal person	237,224,158	1.36	0	Nil	0
Hong Kong Securities Clearing Company Limited	Foreign legal person	136,311,325	0.78	0	Nil	0
National Social Security Fund 114 Portfolio (全國社保基金一一四組合)	Other	93,823,770	0.54	0	Nil	0
China Securities Finance Corporation Limited	Other	89,733,769	0.51	0	Nil	0
China Structural Reform Fund Co., Ltd. (中國國有企業結構調整基金股份有限公司)	State-owned legal person	52,422,706	0.30	0	Nil	0
Bank of China Limited - Huashang Runfeng Flexible Allocation Hybrid Securities Investment Fund (中國銀行股份有限公司－華商潤豐靈活配置混合型證券投資基金)	Other	48,492,056	0.28	0	Nil	0

FIRST QUARTERLY REPORT OF 2026

Summary by AI ^BETAClose X

IMPORTANT NOTICE

1. MAJOR FINANCIAL DATA

2. INFORMATION OF SHAREHOLDERS

3. OTHER REMINDER

4. QUARTERLY FINANCIAL STATEMENTS

CONSOLIDATED BALANCE SHEET

CONSOLIDATED INCOME STATEMENT

CONSOLIDATED CASH FLOW STATEMENT

BALANCE SHEET OF THE PARENT COMPANY

INCOME STATEMENT OF THE PARENT COMPANY

CASH FLOW STATEMENT OF THE PARENT COMPANY

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Items	During the Reporting Period	During the corresponding period of the previous year	Increase/decrease of the Reporting Period as compared to the corresponding period of the previous year (%)

Revenue	44,536,441	40,023,324	11.28
Total profit	1,897,348	-2,453,100	177.34
Net profit attributable to shareholders of the listed company	1,714,097	-2,043,993	183.86
Net profit attributable to shareholders of the listed company after deducting non- recurring profits and losses	1,382,264	-2,127,891	164.96
Net cash flows from operating activities	9,151,285	8,341,401	9.71
Basic earnings per share (RMB per share)	0.10	-0.12	183.33
Diluted earnings per share (RMB per share)	0.10	-0.12	183.33
Weighted average return on net assets (%)	3.96	-4.64	Increased by 8.60 percentage points

Name of shareholder	Number of tradable shares held not subject to selling restrictions	Type and number of shares Type of shares Number

China National Aviation Holding Corporation Limited	6,566,761,847	RMB ordinary shares	6,566,761,847
Cathay Pacific Airways Limited	2,633,725,455	Overseas listed foreign shares	2,633,725,455
HKSCC NOMINEES LIMITED	1,691,166,370	Overseas listed foreign shares	1,691,166,370
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 Limited	237,224,158	RMB ordinary shares	237,224,158
Hong Kong Securities Clearing Company Limited	136,311,325	RMB ordinary shares	136,311,325
National Social Security Fund 114 Portfolio (全國社保基金一一四組合)	93,823,770	RMB ordinary shares	93,823,770
China Securities Finance Corporation Limited	89,733,769	RMB ordinary shares	89,733,769
China Structural Reform Fund Co., Ltd. (中國國有企業結構調整基金股份有限公司)	52,422,706	RMB ordinary shares	52,422,706
Bank of China Limited - Huashang Runfeng Flexible Allocation Hybrid Securities Investment Fund (中國銀行股份有限公司－華商潤豐靈活配置混合型證券投資基金)	48,492,056	RMB ordinary shares	48,492,056
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 53.71% of the shares of the Company.
Explanation on the participation of the top 10 shareholders and the top 10 shareholders not subject to selling restrictions in margin financing and securities lending as well as margin and securities refinancing business (if any)	Nil

Items	31 March 2026	31 December 2025

CURRENT ASSETS:
Cash and bank balance	5,039,112	4,267,178
Financial assets held-for-trading
Derivative financial assets
Bills receivable
Accounts receivable	3,249,717	2,258,034
Receivables financing
Prepayments	278,322	303,194
Other receivables	3,558,368	3,161,821
Including: Interest receivable
Dividend receivable
Inventories	89,694	65,084
Including: Data resources
Contract assets
Held-for-sale assets
Non-current assets due within a year
Other current assets	3,005,953	2,860,229
Total current assets	15,221,166	12,915,540

FIRST QUARTERLY REPORT OF 2026

Summary by AI BETAClose X

IMPORTANT NOTICE

1. MAJOR FINANCIAL DATA

2. INFORMATION OF SHAREHOLDERS

3. OTHER REMINDER

4. QUARTERLY FINANCIAL STATEMENTS

CONSOLIDATED BALANCE SHEET

CONSOLIDATED INCOME STATEMENT

CONSOLIDATED CASH FLOW STATEMENT

BALANCE SHEET OF THE PARENT COMPANY

INCOME STATEMENT OF THE PARENT COMPANY

CASH FLOW STATEMENT OF THE PARENT COMPANY

Companies

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Summary by AI ^BETAClose X