INTERIM REPORT 2025
Summary by AI BETAClose X
中國國際航空股份有限公司 (short name: 中國國航) (English name: Air China Limited, short name: Air China) is the only national flag carrier of China.
As the old saying goes, "Phoenix, a bird symbolizing benevolence" and "The whole world will be at peace once a phoenix reveals itself". The corporate logo of Air China is composed of an artistic phoenix figure, the Chinese characters of "中國國際航空公司" in calligraphy written by Deng Xiaoping, by whom the China's reform and opening-up blueprint was designed, and the characters of "AIR CHINA" in English. Signifying good auspices in the ancient Chinese legends, phoenix is the king of all birds. It "flies from the eastern Happy Land and travels over mountains and seas and bestows luck and happiness upon all parts of the world". Air China advocates the core spirit of phoenix which is to "serve the world, to lead and move forward to higher goals". By virtue of the immense historical heritage, Air China strives to create perfect travel experience and keep passengers safe by upholding the spirit of phoenix of being a practitioner, promoter and leader for the development of the Chinese civil aviation industry. The Company is also committed to leading the industrial development by establishing itself as a national brand, at the same time pursuing outstanding performance through innovation and excelling efforts.
Air China was listed on The Stock Exchange of Hong Kong Limited (stock code: 00753) and the London Stock Exchange (stock code: AIRC) on 15 December 2004, and was listed on the Shanghai Stock Exchange (stock code: 601111) on 18 August 2006.
Headquartered in Beijing, Air China has set up branches in Southwest China, Zhejiang, Chongqing, Tianjin, Shanghai, Hubei, Xinjiang, Guangdong, Guizhou, Tibet and Wenzhou. As at the end of the Reporting Period, the major subsidiaries of Air China are Shenzhen Airlines Company Limited (including Kunming Airlines Company Limited), Shandong Aviation Group Company Limited (including Shandong Airlines Co., Ltd.), Air Macau Company Limited, Beijing Airlines Company Limited, Dalian Airlines Company Limited, Air China Inner Mongolia Co., Ltd., Aircraft Maintenance and Engineering Corporation, Air China Import and Export Co., Ltd., Chengdu Falcon Aircraft Engineering Service Co., Ltd., Air China Shantou Industrial Development Company; its joint ventures mainly include Sichuan Services Aero-Engine Maintenance Co., Ltd, Beijing Aero-Engine Services Co., Ltd. and GA Innovation China Co., Ltd; and its associates mainly include Cathay Pacific Airways Limited and Tibet Airlines Co., Ltd.
With the goal of becoming "the world's leading airline", Air China remains committed to the mission of "put safety first, serve passengers with credibility, convenience, comfort and choice, maintain stable development, help employees achieve success and fulfill corporate responsibilities", advocates the values of "people-oriented, accountable, excelling efforts and enjoyable flights" and positions the brand as "professional and reliable with both international quality and Chinese temperament".
TABLE OF CONTENTS
|
Corporate Information |
2 |
|
Summary of Financial Information |
3 |
|
Summary of Operating Data |
4 |
|
Development of Fleet |
6 |
|
Business Overview |
7 |
|
Management Discussion and Analysis |
14 |
|
Corporate Governance and Other Information |
22 |
|
Independent Review Report |
30 |
|
Condensed Consolidated Financial Statements |
|
|
- Consolidated Statement of Profit or Loss |
31 |
|
- Consolidated Statement of Profit or Loss and |
32 |
|
- Consolidated Statement of Financial Position |
33 |
|
- Consolidated Statement of Changes in Equity |
36 |
|
- Condensed Consolidated Statement of Cash Flows |
37 |
|
- Notes to the Unaudited Interim Financial Report |
38 |
|
Glossary of Technical Terms |
62 |
|
Definitions |
63 |
Corporate Information
REGISTERED CHINESE NAME:
中國國際航空股份有限公司
ENGLISH NAME:
Air China Limited
REGISTERED OFFICE:
1st Floor-9th Floor 101
Building 1
30 Tianzhu Road
Shunyi District
Beijing, the PRC
PRINCIPAL PLACE OF BUSINESS IN HONG KONG:
5th Floor
CNAC House
12 Tung Fai Road
Hong Kong International Airport
Hong Kong
WEBSITE:
www.airchina.com.cn
DIRECTORS:1
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*
Mr. Gao Chunlei*
LEGAL REPRESENTATIVE OF THE COMPANY:
Mr. Ma Chongxian
COMPANY SECRETARY:
Mr. Xiao Feng
AUTHORISED REPRESENTATIVES:
Mr. Ma Chongxian
Mr. Xiao Feng
LEGAL ADVISERS TO THE COMPANY:
DeHeng Law Offices
(as to domestic laws)
Jingtian & Gongcheng LLP
(as to overseas laws)
INTERNATIONAL AUDITOR:
KPMG
Public Interest Entity Auditors registered in accordance with the Accounting and Financial Reporting Council Ordinance
H SHARE REGISTRAR AND TRANSFER OFFICE:
Computershare Hong Kong Investor Services Limited
Rooms 1712-1716, 17th Floor, Hopewell Centre
183 Queen's Road East
Wanchai
Hong Kong
LISTING VENUES:
Hong Kong, London and Shanghai
* Independent Non-executive Director
1 For details of changes in Directors of the Company during the Reporting Period, please refer to page 22 of this report. This page sets out the list of Directors of the Company as of the date of this interim report (i.e. 28 August 2025).
Summary of Financial Information
|
(RMB'000) |
Six months ended |
Six months ended |
|
(Unaudited) |
(Unaudited) |
|
|
|
|
|
|
Revenue |
80,757,434 |
79,520,332 |
|
Loss from operations |
(1,696,430) |
(1,081,972) |
|
Loss before taxation |
(2,787,902) |
(3,286,075) |
|
Loss for the period |
(2,710,105) |
(3,538,611) |
|
Loss attributable to non-controlling interests |
(905,285) |
(759,658) |
|
Loss attributable to equity shareholders of the Company |
(1,804,820) |
(2,778,953) |
|
EBITDA(1) |
13,141,208 |
12,943,313 |
|
EBITDAR(2) |
13,849,545 |
13,551,345 |
|
Loss per share attributable to equity shareholders of the Company (RMB) |
(0.11) |
(0.18) |
|
Return on equity attributable to equity shareholders (%) |
(4.23) |
(7.60) |
|
|
|
|
(1) EBITDA represents earnings before finance income and finance costs, net exchange gains/losses, income tax, share of results of associates and joint ventures, depreciation and amortisation as computed under IFRS Accounting Standards.
(2) EBITDAR represents EBITDA before deducting aircraft and engine lease expenses as well as other lease expenses.
|
(RMB'000) |
30 June 2025 |
31 December 2024 |
|
(Unaudited) |
(Audited) |
|
|
|
|
|
|
Total assets |
347,539,122 |
345,750,173 |
|
Total liabilities |
309,309,125 |
304,824,203 |
|
Non-controlling interests |
(4,393,572) |
(4,202,202) |
|
Equity attributable to equity shareholders of the Company |
42,623,569 |
45,128,172 |
|
Equity attributable to equity shareholders of the Company per share (RMB) |
2.44 |
2.71 |
|
|
|
|
Summary of Operating Data
The following is the operating data summary of the Company, Shenzhen Airlines (including Kunming Airlines), Shandong Airlines, Beijing Airlines, Dalian Airlines, Air China Inner Mongolia and Air Macau.
|
|
January to |
January to |
Increase/(decrease) |
|
|
|
|
|
|
Capacity |
|
|
|
|
|
|
|
|
|
ASK (million) |
177,576.14 |
171,790.89 |
3.37% |
|
|
|
|
|
|
International |
51,445.77 |
44,082.60 |
16.70% |
|
|
|
|
|
|
Mainland China |
121,132.50 |
122,675.40 |
(1.26%) |
|
|
|
|
|
|
Hong Kong SAR, Macau SAR and Taiwan, China |
4,997.87 |
5,032.90 |
(0.70%) |
|
|
|
|
|
|
AFTK (million) |
6,425.74 |
6,122.03 |
4.96% |
|
|
|
|
|
|
International |
3,055.74 |
2,577.25 |
18.57% |
|
|
|
|
|
|
Mainland China |
3,246.51 |
3,409.83 |
(4.79%) |
|
|
|
|
|
|
Hong Kong SAR, Macau SAR and Taiwan, China |
123.50 |
134.96 |
(8.49%) |
|
|
|
|
|
|
ATK (million) |
22,428.25 |
21,606.69 |
3.80% |
|
|
|
|
|
|
Traffic |
|
|
|
|
|
|
|
|
|
RPK (million) |
143,336.58 |
136,213.57 |
5.23% |
|
|
|
|
|
|
International |
39,337.74 |
33,625.02 |
16.99% |
|
|
|
|
|
|
Mainland China |
100,349.17 |
98,966.23 |
1.40% |
|
|
|
|
|
|
Hong Kong SAR, Macau SAR and Taiwan, China |
3,649.66 |
3,622.31 |
0.75% |
|
|
|
|
|
|
RFTK (million) |
2,408.59 |
2,237.13 |
7.66% |
|
|
|
|
|
|
International |
1,560.66 |
1,409.88 |
10.69% |
|
|
|
|
|
|
Mainland China |
817.46 |
795.51 |
2.76% |
|
|
|
|
|
|
Hong Kong SAR, Macau SAR and Taiwan, China |
30.47 |
31.74 |
(4.01%) |
|
|
|
|
|
|
Passengers carried (thousand) |
77,114.33 |
74,959.47 |
2.87% |
|
|
|
|
|
|
International |
8,939.31 |
7,535.97 |
18.62% |
|
|
|
|
|
|
Mainland China |
65,835.77 |
65,161.14 |
1.04% |
|
|
|
|
|
|
Hong Kong SAR, Macau SAR and Taiwan, China |
2,339.26 |
2,262.37 |
3.40% |
|
|
|
|
|
|
Cargo and mail carried (tonnes) |
735,334.14 |
701,598.29 |
4.81% |
|
|
|
|
|
|
Kilometres flown (million) |
922.72 |
896.88 |
2.88% |
|
|
|
|
|
|
Block hours (thousand) |
1,465.36 |
1,438.31 |
1.88% |
|
|
|
|
|
|
Number of flights |
504,285 |
498,613 |
1.14% |
|
|
|
|
|
|
International |
56,194 |
47,201 |
19.05% |
|
|
|
|
|
|
Mainland China |
430,131 |
434,608 |
(1.03%) |
|
|
|
|
|
|
Hong Kong SAR, Macau SAR and Taiwan, China |
17,960 |
16,804 |
6.88% |
|
|
|
|
|
|
RTK (million) |
15,050.36 |
14,229.30 |
5.77% |
|
|
|
|
|
|
Load factor |
|
|
|
|
|
|
|
|
|
Passenger load factor (RPK/ASK) |
80.72% |
79.29% |
1.43 pp |
|
|
|
|
|
|
International |
76.46% |
76.28% |
0.19 pp |
|
|
|
|
|
|
Mainland China |
82.84% |
80.67% |
2.17 pp |
|
|
|
|
|
|
Hong Kong SAR, Macau SAR and Taiwan, China |
73.02% |
71.97% |
1.05 pp |
|
|
|
|
|
|
Cargo and mail load factor (RFTK/AFTK) |
37.48% |
36.54% |
0.94 pp |
|
|
|
|
|
|
International |
51.07% |
54.70% |
(3.63 pp) |
|
|
|
|
|
|
Mainland China |
25.18% |
23.33% |
1.85 pp |
|
|
|
|
|
|
Hong Kong SAR, Macau SAR and Taiwan, China |
24.67% |
23.52% |
1.15 pp |
|
|
|
|
|
|
Overall load factor (RTK/ATK) |
67.10% |
65.86% |
1.25 pp |
|
|
|
|
|
|
Utilisation |
|
|
|
|
|
|
|
|
|
Daily utilisation of aircraft (block hours per day per aircraft) |
8.76 |
8.79 |
(0.03 hours) |
|
|
|
|
|
|
Yield |
|
|
|
|
|
|
|
|
|
Yield per RPK (RMB) |
0.5107 |
0.5369 |
(4.88%) |
|
|
|
|
|
|
International |
0.4889 |
0.4927 |
(0.77%) |
|
|
|
|
|
|
Mainland China |
0.5134 |
0.5475 |
(6.23%) |
|
|
|
|
|
|
Hong Kong SAR, Macau SAR and Taiwan, China |
0.6683 |
0.6578 |
1.60% |
|
|
|
|
|
|
Yield per RFTK (RMB) |
1.4853 |
1.4878 |
(0.17%) |
|
|
|
|
|
|
International |
1.7344 |
1.7792 |
(2.52%) |
|
|
|
|
|
|
Mainland China |
0.9419 |
0.9035 |
4.25% |
|
|
|
|
|
|
Hong Kong SAR, Macau SAR and Taiwan, China |
3.3024 |
3.1906 |
3.50% |
|
|
|
|
|
|
Unit cost |
|
|
|
|
|
|
|
|
|
Operating expenses per ASK (RMB) |
0.4791 |
0.4881 |
(1.84%) |
|
|
|
|
|
|
Operating expenses per ATK (RMB) |
3.7930 |
3.8809 |
(2.26%) |
|
|
|
|
|
Development of Fleet
During the first half of 2025, the Group introduced a total of nine aircraft, including one A320 series aircraft, five B737 series aircraft, one C919 aircraft and two C909 aircraft, and phased out a total of five aircraft, including one A330 series aircraft, three A320 series aircraft and one business jet. As at the end of the Reporting Period, the Group had a total of 934 aircraft with an average age of 10.28 years, of which the Company operated a fleet of 510 aircraft in total, with an average age of 9.92 years. During the Reporting Period, the Company introduced eight aircraft and phased out two aircraft.
Details of the fleet of the Group are set out in the table below:
|
|
30 June 2025 |
||||
|
|
Sub-total |
Self-owned |
Finance leases |
Operating leases |
Average age (year) |
|
|
|
|
|
|
|
|
Airbus |
430 |
196 |
115 |
119 |
10.14 |
|
|
|
|
|
|
|
|
A320 |
347 |
165 |
90 |
92 |
10.35 |
|
|
|
|
|
|
|
|
A330 |
53 |
21 |
5 |
27 |
12.18 |
|
|
|
|
|
|
|
|
A350 |
30 |
10 |
20 |
- |
4.13 |
|
|
|
|
|
|
|
|
Boeing |
462 |
191 |
97 |
174 |
11.11 |
|
|
|
|
|
|
|
|
B737 |
410 |
156 |
88 |
166 |
11.08 |
|
|
|
|
|
|
|
|
B747 |
10 |
8 |
2 |
- |
15.97 |
|
|
|
|
|
|
|
|
B777 |
28 |
17 |
5 |
6 |
11.21 |
|
|
|
|
|
|
|
|
B787 |
14 |
10 |
2 |
2 |
8.36 |
|
|
|
|
|
|
|
|
COMAC |
39 |
27 |
12 |
- |
2.02 |
|
|
|
|
|
|
|
|
C909 |
35 |
23 |
12 |
- |
2.19 |
|
|
|
|
|
|
|
|
C919 |
4 |
4 |
- |
- |
0.52 |
|
|
|
|
|
|
|
|
Business jets |
3 |
1 |
- |
2 |
9.31 |
|
|
|
|
|
|
|
|
Total |
934 |
415 |
224 |
295 |
10.28 |
|
|
|
|
|
|
|
|
|
Introduction Plan |
Phase-out Plan |
||||
|
|
2025 |
2026 |
2027 |
2025 |
2026 |
2027 |
|
|
|
|
|
|
|
|
|
Airbus |
22 |
27 |
24 |
13 |
13 |
3 |
|
|
|
|
|
|
|
|
|
A320 |
22 |
27 |
24 |
9 |
13 |
3 |
|
|
|
|
|
|
|
|
|
A330 |
- |
- |
- |
4 |
- |
- |
|
|
|
|
|
|
|
|
|
Boeing |
13 |
2 |
21 |
5 |
1 |
1 |
|
|
|
|
|
|
|
|
|
B737 |
13 |
- |
12 |
4 |
1 |
1 |
|
|
|
|
|
|
|
|
|
B747 |
- |
- |
- |
1 |
- |
- |
|
|
|
|
|
|
|
|
|
B787 |
- |
2 |
9 |
- |
- |
- |
|
|
|
|
|
|
|
|
|
COMAC |
12 |
10 |
10 |
- |
- |
- |
|
|
|
|
|
|
|
|
|
C909 |
2 |
- |
- |
- |
- |
- |
|
|
|
|
|
|
|
|
|
C919 |
10 |
10 |
10 |
- |
- |
- |
|
|
|
|
|
|
|
|
|
Total |
47 |
39 |
55 |
18 |
14 |
4 |
|
|
|
|
|
|
|
|
Note: Please refer to the actual operation for the introduction and phase-out of the Group's fleet in the future.
Business Overview
Safe Operations
Comprehensively implementing the holistic approach to national security, the Group reinforced safety accountability with resolute political commitment, unwaveringly upholding the principle of "safety first". The annual key safety tasks were rigorously advanced, with the Group's leadership team conducting safety supervision and field research at seven subsidiaries and branches. Steady progress was made in the three-year action plan for fundamental improvement in workplace safety. This included formulating implementation plans for safety production, comprehensively strengthening process management, and continuously enhancing safety operation systems across key areas such as safety management, flight training, operational management, aircraft maintenance, risk identification and hidden hazard identification and mitigation, dangerous goods air transportation, aviation security as well as fire and construction safety. Focusing on complex operational environments and critical production processes, the Group applied to "human error, equipment failure, environmental factors and deficiencies management (人、機、環、管)" framework to rigorously enforce risk controls. During the Reporting Period, the Group achieved 1.465 million safe flight hours while successfully executing multiple charter flights and special missions including repatriation of overseas cultural relics, earthquake relief and rescue in Myanmar and Tibet and emergency evacuations from Iran, all demonstrating the Group's strong political accountability and commitment to social responsibilities.
Operational Performance
The Group made solid strides in enhancing quality and efficiency, steadfastly anchoring its efforts to achieve the annual business objectives. The Group adhered to implementing the "Four Maximizations" production organization principle to increase the scale of effective input. The hub network strategy was further advanced, with continuous optimization of the flight route network and meticulous development of domestic express routes to strengthen competitive edges. The Group steadily pushed forward the launch of new international routes and resumption of suspended ones, prioritizing market expansion along the "Belt and Road" initiative. The Group continuously enhanced its product marketing and innovation capabilities. Product design was continually refined to cater to passengers' differentiated needs, with innovative upgrades to distinctive tailored offerings such as the "Phoenix Junior Program
(新生旅客計劃)", the "Silver Age Plan (活力銀齡計劃)" and the "Student Zone (學生專區)". The Group also deepened customer orientation by implementing a dedicated client manager system, elevating the experience of core customer groups and bolstering the Company's reputation. The Group continued to reinforce synergistic development to extend the breadth and depth of the route network, and conducted joint thematic marketing initiatives to sharpen the core competitiveness. Cost control was advanced, with focused efforts on unlocking potential savings and enhancing overall profitability. The Group continuously strengthened the financial coordination, enhanced debt risk management, improved capital utilization efficiency while ensuring fund security to reduce financial costs.
Quality Service
Guided by the "people-centered" development philosophy and anchored to the goal of building a world-class aviation transportation group, the Group made steady progress in its annual priority tasks of creating "Four First-class (四個一流)" services. By continuously advancing the development of the service quality management system, enhancing service standards, deepening product and service innovation and focusing on driving digital upgrades across the entire service process, the Group promoted its high-quality development through service excellence.
Adhering to a problem-oriented approach, the Group revised its key service standards such as service compensation policies, optimized satisfaction survey analysis and established coordinated ticketing policy and payment monitoring mechanisms to precisely improve passenger experiences. Branded service products were further developed, including the launch of the new "Zichen (紫宸)" premium lounge in Urumqi and the addition of "Hangzhou-Chengdu" express route and "Chongqing-Shenzhen" city express route, enriching the express route portfolio. To enhance passenger convenience, the Group enriched in-app payment methods and introduced multiple features such as passport chip scanning and cross-airline special service bookings, extended intercity air-rail intermodal service coverage to 73 cities and expanded domestic through-check-in flight services to 21 locations. The Group accelerated the development and rollout of service system platforms, with the officially full operation of an end-to-end passenger notification system. In-flight meal reservation service was extended to all domestic flights, providing superior service to passengers. Intelligent customer service provides passengers with inquiry and response services including flight status queries and pre-flight instructions. The passenger service compensation system, service knowledge database and other service production support systems have been upgraded, further enhancing digital capabilities in both service and management.
Digital Transformation
The Group accelerated the digital and intelligent transformation across all business domains. In terms of safety operations, the global ground flight support platform achieved full coverage across all branches, enabling flight monitoring visualization, intelligent shift scheduling and mobile operations for frontline staff, significantly enhancing ground support capabilities. Supported by the intelligent route engineer platform, engineers were empowered to formulate fault response plans, enhance maintenance efficiency, and boost safety management capabilities through technological innovation. In terms of marketing and services, all business model phase II projects were launched, delivering enhanced precision marketing and diversified product management, enabling rapid and flexible configuration of air tickets and products and expanded sales channels. The Group actively promoted artificial intelligence (AI) adoption, developing key applications including intelligent customer service and smart maintenance. In-flight meal reservation services achieved full coverage across all domestic flights, with intelligent customer service providing passengers with smart voice-enabled Q&A support. The centralized departure control business attained complete implementation at all Air China's flight destinations. Service production support systems, including the passenger service compensation systems, service knowledge database and others, underwent upgrades and iterations. The Group also established a comprehensive AI+ platform to enable centralized and intensive sharing of AI resources across the organization, providing foundational support for the implementation of AI applications throughout all operational domains.
Brand Value
Aligned with the goal of building a "world-renowned brand" as part of its world-class enterprise development strategy, the Group continuously strengthened its integrated online-offline and air-ground synergistic three-dimensional communication system, focusing on creating a globally leading brand. Participating in the 20th Western China International Fair, under the theme "Harnessing Western Momentum for Global Connections (乘西部之風 赴世界之約)", the Group showcased its role as the national flag carrier in serving national strategies and empowering regional economies with solid results. The Group actively carried out its overseas brand promotion, accelerating the establishment of a brand management and international communication framework. At the 2025 Brand Global Communication Conference (2025品牌全球傳播力大會), Air China ranked 26th on the "2025 China Brands Global Influence Index (2025中國品牌全球傳播力總榜)", as the only airline included in the ranking. According to the evaluation released by World Brand Lab, Air China ranked 25th in the "China's Top 500 Most Valuable Brands" for 2025 with a brand value of RMB275.576 billion, maintaining its leading position in China's aviation service industry.
Review of Enhancing Quality And Efficiency to Boosting Returns
During the Reporting Period, the Group expedited the improvement of the quality and efficiency of its core business operations, continued to enhance profitability, and implemented comprehensive and systematic measures to elevate quality and efficiency, resulting in a notable improvement in operating performance. During the Reporting Period, the Group's cumulative available seat kilometers (ASK) reached 177.576 billion, representing a year-on-year increase of 3.37%. The Group transported 77.114 million passengers, representing a year-on-year increase of 2.87%. During the Reporting Period, the Group recorded revenue of RMB80,757 million, representing a year-on-year increase of RMB1,237 million; and recorded a net loss attributable to equity shareholders of the listed company amounted to RMB1,805 million, representing a reduction in loss of RMB974 million.
Continuously improving the efficiency of core resource utilization and accelerating the expansion of routes under the "Belt and Road" initiative, Air China has now reached 40 destinations in "Belt and Road" countries. The Group enhanced its precision control capabilities and adopted multiple measures to stabilize revenue. It further strengthened the top-level design for strategic synergy, enhanced coordination within the Air China family airlines in areas such as capacity allocation and yield management, as well as marketing products and services, thereby coordinating the regional resources to foster economies of scale. Through the implementation of "intensive, coordinated and refined" management, costs in major areas such as jet fuel, takeoffs and landings, in-flight catering and aircraft maintenance were reduced, while refined cost control were continuously deepened across the entire operational chain.
Adhering to standardized operation, the Group continuously improved the corporate governance mechanisms. By giving full play to the leadership role of the Party Committee, the Group strictly implemented the requirement that material operational and management matters must undergo preliminary research and discussion by the Party Committee. As of the end of the Reporting Period, the Board held six meetings, at which 34 resolutions were considered and approved. Among these, the Party Committee made pre-decisions on 2 proposals, and conducted preliminary research and discussion on 13 major resolutions; and the Board received 11 special reports. In February 2025, the Board re-election was completed, and the seventh session of the Board was established with adjustments made to the composition of its various special committees and joint working groups. The Company implemented measures to align with the provisions of newly amended Company Law and the latest regulatory requirements, systematically amended the Articles of Association, the Rules and Procedures of Shareholders' Meetings, the Rules and Procedures of Meetings of the Board and the Working Rules of the Nomination Committee, thereby supporting the establishment of a governance-compliant Board. All information related to the Company's production and operations that could have a material impact on share price was disclosed in a truthful, accurate, complete and timely manner, ensuring that all shareholders have equal access to the information of the Company and safeguarding the rights and interests of investors. During the Reporting Period, the Company completed the preparation and disclosure of periodic reports, ad hoc announcements and circulars of high quality. The Company's information disclosure work for the year 2023-2024 was rated as Grade A by the Shanghai Stock Exchange, indicating excellence in information disclosure.
Efforts in investor relations were actively promoted to establish bridges and communication channels with the capital market. The Company organized and held the 2024 online results briefings to fully address market concerns. By conducting the 2024 results roadshow in Hong Kong and Shanghai and visiting 12 major institutional investors, the Company provided thorough and in-depth responses to various questions of concern of investors to boost investor confidence. The Company actively participated in institutional strategy conferences and organized or took part in nearly 20 investment conferences or telephone research meetings during the Reporting Period. Using platforms such as the SSE E-Interactive and the investor relations section of the Company's official website, the Company promptly updated various types of corporate information and actively responded to investor inquiries, placing strong emphasis on the needs of small- and medium-sized investors. Additionally, the Company scientifically managed its market value and formulated the Work Plan on the Market Value Management of Air China Limited (《中國國際航空股份有限公司市值管理工作方案》) to promote high-quality development of the Company.
The Company strengthened responsibilities of the key minorities to promote the robust development of the Company. The Company's controlling shareholders, CNAHC and CNACG, maintain a long-term positive outlook on the China's aviation industry. Based on their confidence in the future prospects of the Company's development and recognition of its intrinsic investment value, they have committed not to reduce their holdings of the Company's tradable shares that are not subject to selling restrictions in any manner for a period of 18 months commencing from 8 April 2025.
MAJOR SUBSIDIARIES AND ASSOCIATES AND THEIR OPERATING RESULTS
|
|
Note: As at the end of the Reporting Period, CNACG is a wholly-owned subsidiary of CNAHC. Accordingly, CNAHC is directly and indirectly interested in 53.71% of the shares of the Company.
During the Reporting Period, the operating results of the major subsidiaries and associates of the Company affecting more than 10% of the Company's net profit were as follows:
|
|
Shenzhen Airlines |
Shandong Aviation Group Corporation |
Beijing Airlines |
Dalian Airlines |
Air China Inner Mongolia |
Air Macau |
Ameco |
CNAF |
Cathay Pacific |
|
|
|
|
|
|
|
|
|
|
|
|
Company Type |
Subsidiary |
Subsidiary |
Subsidiary |
Subsidiary |
Subsidiary |
Subsidiary |
Subsidiary |
Subsidiary |
Associate |
|
|
|
|
|
|
|
|
|
|
|
|
Year of establishment |
1992 |
1995 |
2011 |
2011 |
2013 |
1994 |
1989 |
1994 |
1946 |
|
|
|
|
|
|
|
|
|
|
|
|
Place of domicile |
Shenzhen |
Shandong |
Beijing |
Dalian |
Inner Mongolia |
Macau |
Beijing |
Beijing |
Hong Kong |
|
|
|
|
|
|
|
|
|
|
|
|
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 |
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 |
|
|
|
|
|
|
|
|
|
|
|
|
Registered capital |
RMB5,360,000,000 |
RMB10,454,489,846.24 |
RMB1,000,000,000 |
RMB3,000,000,000 |
RMB2,000,000,000 |
MOP2,379,415,900 |
USD300,052,800 |
RMB1,127,961,864 |
6,439,409,250 shares in issue |
|
|
|
|
|
|
|
|
|
|
|
|
Percentage of shareholding |
51% |
66% |
51% |
80% |
80% |
74.94% |
75% |
51% |
29.98% |
|
|
|
|
|
|
|
|
|
|
|
|
Total assets (RMB100 million) |
671.76 |
350.70 |
10.17 |
31.57 |
28.24 |
68.95 |
76.42 |
175.06 |
1,553.07 |
|
|
|
|
|
|
|
|
|
|
|
|
Net assets (RMB100 million) |
(142.09) |
24.53 |
4.94 |
22.81 |
19.52 |
16.32 |
14.51 |
20.32 |
471.12 |
|
|
|
|
|
|
|
|
|
|
|
|
Revenue (RMB100 million) |
164.02 |
100.38 |
2.32 |
9.83 |
7.89 |
15.02 |
64.98 |
0.79 |
499.10 |
|
|
|
|
|
|
|
|
|
|
|
|
Year-on-year changes (%) |
2.39 |
2.63 |
0.23 |
3.76 |
(8.50) |
1.97 |
13.65 |
8.65 |
10.64 |
|
|
|
|
|
|
|
|
|
|
|
|
Profit/(loss) attributable to parent company (RMB100 million) |
(8.33) |
(3.08) |
(0.48) |
(0.83) |
0.09 |
(3.86) |
1.91 |
0.27 |
33.55 |
|
|
|
|
|
|
|
|
|
|
|
|
Profit/(loss) attributable to parent company in the corresponding period of last year |
(13.74) |
0.26 |
(0.40) |
(1.21) |
(0.59) |
(3.78) |
2.66 |
0.26 |
30.67 |
|
|
|
|
|
|
|
|
|
|
|
The fleet information and operating data of the major subsidiaries and associates of the Company were as follows:
|
As at the end of the Reporting Period/During the Reporting Period |
Shenzhen Airlines |
Shandong Airlines |
Beijing Airlines* |
Dalian Airlines |
Air China Inner Mongolia |
Air Macau |
Cathay Pacific |
|
|
|
|
|
|
|
|
|
|
Fleet size (unit) |
234 |
138 |
6 |
13 |
11 |
22 |
234 |
|
|
|
|
|
|
|
|
|
|
Average age (year) |
10.45 |
11.20 |
12.45 |
11.73 |
11.53 |
9.04 |
11.5 |
|
|
|
|
|
|
|
|
|
|
ASK (100 million) |
386.40 |
236.63 |
4.06 |
21.56 |
16.96 |
34.56 |
667.92 |
|
|
|
|
|
|
|
|
|
|
Year-on-year changes (%) |
4.66 |
4.12 |
(13.42) |
3.63 |
(4.00) |
(0.51) |
26.3 |
|
|
|
|
|
|
|
|
|
|
RPK (100 million) |
327.19 |
197.31 |
2.79 |
17.06 |
13.20 |
26.18 |
566.51 |
|
|
|
|
|
|
|
|
|
|
Year-on-year changes (%) |
8.17 |
4.92 |
(10.27) |
6.26 |
(2.98) |
2.39 |
30.0 |
|
|
|
|
|
|
|
|
|
|
Passengers carried (10 thousand) |
2,037.16 |
1,326.97 |
25.61 |
123.19 |
100.37 |
156.53 |
1,362.7 |
|
|
|
|
|
|
|
|
|
|
Year-on-year changes (%) |
7.05 |
3.35 |
13.62 |
8.09 |
(2.52) |
5.83 |
27.8 |
|
|
|
|
|
|
|
|
|
|
Average passenger load factor (%) |
84.68 |
83.4 |
68.62 |
79.11 |
77.84 |
75.74 |
84.8 |
|
|
|
|
|
|
|
|
|
|
Year-on-year changes (pp) |
2.74 |
0.64 |
2.41 |
1.96 |
0.81 |
2.14 |
2.4 |
|
|
|
|
|
|
|
|
|
*Note: As at the end of the Reporting Period, Beijing Airlines operated a fleet of two entrusted business jets and one self-owned business jet with an average age of 9.31 years. During the Reporting Period, in terms of business charter service, Beijing Airlines completed 117 flights, representing a year-on-year decrease of 4.88%; it completed 541.08 flying hours, representing a year-on-year increase of 16.30%; it transported a total of 1,292 passengers, representing a year-on-year increase of 33.75%.
EMPLOYEES
As at the end of the Reporting Period, the Company had a total of 47,073 employees, and the subsidiaries of the Company had a total of 58,475 employees.
REMUNERATION POLICY AND TRAINING
The Company upholds the concept of "compensation based on job value, individual competence as well as performance appraisal". During the Reporting Period, the Company strengthened full-level management and supervision of total payroll, remuneration of heads of subsidiaries and employee remuneration. It further emphasized performance-driven compensation distribution, implemented differentiated salary reforms and promoted the distribution of salary resources to core and key talents in the field of scientific and technological innovation and those who have made outstanding contributions, as well as front-line positions involving arduous, dirty, hazardous and high-intensity work. With continuous efforts in deepening the reform of gross payroll management, the Company improved the compensation control mechanisms for enterprise heads at all levels to promote more rational and orderly income distribution.
The training programs of the Company are the same as those disclosed in the 2024 annual report of the Company published on 23 April 2025.
Management Discussion and Analysis
The following discussion and analysis are based on the Group's interim condensed consolidated financial statements and notes thereto which were prepared in accordance with International Accounting Standard 34, Interim Financial Reporting, as well as the applicable disclosure requirements under Appendix D2 to the Listing Rules and are designed to assist the readers in further understanding the information provided in this report so as to better understand the financial conditions and results of operations of the Group as a whole.
Revenue
During the Reporting Period, the Group's revenue was RMB80,757 million, representing a year-on-year increase of RMB1,237 million or 1.56%. Among them, air traffic revenue was RMB76,774 million, representing a year-on-year increase of RMB308 million or 0.40%; other operating revenue was RMB3,983 million, representing a year-on-year increase of RMB929 million or 30.41%.
Revenue Contributed by Geographical Segments
|
|
For the six months ended 30 June |
|
|||
|
|
2025 |
2024 |
|
||
|
(in RMB'000) |
Amount |
Percentage |
Amount |
Percentage |
Change |
|
|
|
|
|
|
|
|
International |
21,940,162 |
27.17% |
19,075,627 |
23.99% |
15.02% |
|
|
|
|
|
|
|
|
Mainland China |
56,277,430 |
69.69% |
57,960,673 |
72.89% |
(2.90%) |
|
|
|
|
|
|
|
|
Hong Kong SAR, Macau SAR |
2,539,842 |
3.14% |
2,484,032 |
3.12% |
2.25% |
|
|
|
|
|
|
|
|
Total |
80,757,434 |
100.00% |
79,520,332 |
100.00% |
1.56% |
|
|
|
|
|
|
|
Air Passenger Revenue
During the Reporting Period, the Group recorded an air passenger revenue of RMB73,196 million, representing a year-on-year increase of RMB59 million. Among the air passenger revenue, the increase of capacity resulted in an increase in revenue of RMB2,463 million, and the increase of passenger load factor resulted in an increase in revenue of RMB1,361 million, while the decrease of passenger yield resulted in a decrease in revenue of RMB3,765 million. The capacity, passenger load factor and yield per RPK of air passenger business during the Reporting Period are as follows:
|
|
For the six months ended 30 June |
|
|
|
|
2025 |
2024 |
Change |
|
|
|
|
|
|
Available seat kilometres (million) |
177,576.14 |
171,790.89 |
3.37% |
|
|
|
|
|
|
Passenger load factor (%) |
80.72 |
79.29 |
1.43 pp |
|
|
|
|
|
|
Yield per RPK (RMB) |
0.5107 |
0.5369 |
(4.88%) |
|
|
|
|
|
Air Passenger Revenue Contributed by Geographical Segments
|
|
For the six months ended 30 June |
|
|||
|
|
2025 |
2024 |
|
||
|
(in RMB'000) |
Amount |
Percentage |
Amount |
Percentage |
Change |
|
|
|
|
|
|
|
|
International |
19,233,312 |
26.28% |
16,567,178 |
22.65% |
16.09% |
|
|
|
|
|
|
|
|
Mainland China |
51,523,843 |
70.39% |
54,187,183 |
74.09% |
(4.92%) |
|
|
|
|
|
|
|
|
Hong Kong SAR, Macau SAR and Taiwan, China |
2,439,221 |
3.33% |
2,382,755 |
3.26% |
2.37% |
|
|
|
|
|
|
|
|
Total |
73,196,376 |
100.00% |
73,137,116 |
100.00% |
0.08% |
|
|
|
|
|
|
|
Air Cargo and Mail Revenue
During the Reporting Period, the Group's air cargo and mail revenue was RMB3,577 million, representing a year-on-year increase of RMB249 million. Among which, the increase of capacity contributed to an increase in revenue of RMB165 million, and the increase of cargo and mail load factor resulted in an increase in revenue of RMB90 million, while the decrease of yield of cargo and mail business resulted in a decrease in revenue of RMB6 million. The capacity, cargo and mail load factor and yield per RFTK of air cargo and mail business during the Reporting Period are as follows:
|
|
For the six months ended 30 June |
|
|
|
|
2025 |
2024 |
Change |
|
|
|
|
|
|
Available freight tonne kilometres (million) |
6,425.74 |
6,122.03 |
4.96% |
|
|
|
|
|
|
Cargo and mail load factor (%) |
37.48 |
36.54 |
0.94 pp |
|
|
|
|
|
|
Yield per RFTK (RMB) |
1.4853 |
1.4878 |
(0.17%) |
|
|
|
|
|
Air Cargo and Mail Revenue Contributed by Geographical Segments
|
|
For the six months ended 30 June |
|
|||
|
|
2025 |
2024 |
|
||
|
(in RMB'000) |
Amount |
Percentage |
Amount |
Percentage |
Change |
|
|
|
|
|
|
|
|
International |
2,706,850 |
75.67% |
2,508,449 |
75.36% |
7.91% |
|
|
|
|
|
|
|
|
Mainland China |
769,997 |
21.52% |
718,726 |
21.59% |
7.13% |
|
|
|
|
|
|
|
|
Hong Kong SAR, Macau SAR and Taiwan, China |
100,621 |
2.81% |
101,277 |
3.05% |
(0.65%) |
|
|
|
|
|
|
|
|
Total |
3,577,468 |
100.00% |
3,328,452 |
100.00% |
7.48% |
|
|
|
|
|
|
|
Operating Expenses
During the Reporting Period, the Group's operating expenses increased by RMB1,217 million on a year-on-year basis to RMB85,070 million, representing an increase of 1.45%. The breakdown of the operating expenses is set out below:
|
|
For the six months ended 30 June |
|
|||
|
|
2025 |
2024 |
|
||
|
(in RMB'000) |
Amount |
Percentage |
Amount |
Percentage |
Change |
|
|
|
|
|
|
|
|
Jet fuel costs |
24,327,485 |
28.60% |
27,132,269 |
32.36% |
(10.34%) |
|
|
|
|
|
|
|
|
Take-off, landing and depot charges |
10,613,810 |
12.48% |
9,963,482 |
11.88% |
6.53% |
|
|
|
|
|
|
|
|
Depreciation and amortisation |
14,837,638 |
17.44% |
14,025,285 |
16.73% |
5.79% |
|
|
|
|
|
|
|
|
Aircraft maintenance, repair |
7,292,075 |
8.57% |
6,862,447 |
8.18% |
6.26% |
|
|
|
|
|
|
|
|
Employee compensation costs |
17,849,218 |
20.98% |
16,953,921 |
20.22% |
5.28% |
|
|
|
|
|
|
|
|
Air catering charges |
2,104,979 |
2.47% |
1,973,435 |
2.35% |
6.67% |
|
|
|
|
|
|
|
|
Selling and marketing expenses |
2,410,378 |
2.83% |
2,275,875 |
2.71% |
5.91% |
|
|
|
|
|
|
|
|
General and administrative expenses |
797,634 |
0.94% |
780,314 |
0.93% |
2.22% |
|
|
|
|
|
|
|
|
Others |
4,836,492 |
5.69% |
3,886,126 |
4.64% |
24.46% |
|
|
|
|
|
|
|
|
Total |
85,069,709 |
100.00% |
83,853,154 |
100.00% |
1.45% |
|
|
|
|
|
|
|
- Jet fuel costs decreased by RMB2,805 million on a year-on-year basis, mainly due to the combined effect of the decrease in the prices of jet fuel and increase in the consumption of jet fuel.
- Take-off, landing and depot charges increased by RMB650 million on a year-on-year basis, mainly due to the year-on-year increase in the number of take-offs and landings.
- Depreciation and amortisation expenses increased by RMB812 million on a year-on-year basis, mainly due to the expansion of fleet as well as the year-on-year increase in flying hours.
- Aircraft maintenance, repair and overhaul costs increased by RMB430 million on a year-on-year basis, mainly due to the year-on-year increase in flying hours.
- Employee compensation costs increased by RMB895 million on a year-on-year basis, mainly due to the year-on-year increase in flight hour fees.
- Air catering charges increased by RMB132 million on a year-on-year basis, mainly due to the increase in the number of passengers.
- Selling and marketing expenses increased by RMB135 million on a year-on-year basis, mainly due to the increase in booking fees resulting from the increase in the sales volumes and the number of passengers.
- Other operating expenses mainly included the Civil Aviation Development Fund and ordinary expenses arising from the core air traffic business that are not included in the aforementioned specific items, which increased by RMB950 million on a year-on-year basis, mainly due to the effect of the increase in the investment in production and operation and changes in contract performance costs of aircraft maintenance subsidiaries.
Net Exchange Gain and Finance Costs
During the Reporting Period, the Group recorded a net exchange gain of RMB176 million, as compared to the net exchange loss of RMB360 million for the same period last year. The Group incurred finance costs of RMB2,891 million (excluding those capitalised) during the Reporting Period, representing a year-on-year decrease of RMB375 million.
Share of Results of Associates and Joint Ventures
During the Reporting Period, the Group's share of profits of its associates was RMB1,220 million, representing a year-on-year increase of RMB135 million. The Group recognised share of profit from Cathay Pacific of RMB1,174 million during the Reporting Period, representing a year-on-year increase of RMB106 million.
During the Reporting Period, the Group's share of profits of its joint ventures was RMB117 million, representing a year-on-year increase of RMB26 million.
MATERIAL ACQUISITIONS AND DISPOSALS
The Company did not make any material acquisitions or disposals of subsidiaries, associates or joint ventures during the Reporting Period.
Assets Structure Analysis
At the end of the Reporting Period, the total assets of the Group were RMB347,539 million, representing an increase of 0.52% from that as at 31 December 2024. Among them, the current assets accounted for RMB47,750 million or 13.74% of the total assets, while the non-current assets accounted for RMB299,789 million or 86.26% of the total assets.
Among the current assets, cash and cash equivalents were RMB25,331 million, representing an increase of 20.40% from that as at 31 December 2024, which was mainly due to the Company's flexible adjustment of its funds according to its capital arrangements.
Among the non-current assets, the book values of property, plant and equipment and right-of-use assets as at the end of the Reporting Period amounted to RMB237,141 million, representing a decrease of 1.61% from that as at 31 December 2024.
Asset Mortgage/Pledge
At the end of the Reporting Period, the Group, pursuant to certain bank loan agreements, had secured aircraft and buildings with an aggregate book value of approximately RMB4,669 million (RMB3,825 million as at 31 December 2024) and land use rights with book value of approximately RMB23 million (RMB23 million as at 31 December 2024). Meanwhile, the Group had restricted monetary funds of approximately RMB2,591 million (RMB1,428 million as at 31 December 2024), which were mainly statutory reserves deposited in the People's Bank of China, pledged bank deposits, security deposits and time deposits with a maturity of more than three months.
Capital Expenditure
During the Reporting Period, the Group's capital expenditure amounted to a total of RMB5,859 million. Among this, aircraft-related investments totalled RMB2,362 million, primarily covering the acquisition of aircraft and engines, aircraft modifications and retrofitting, as well as flight simulators. Cash portion of long-term investment projects amounted to RMB2,726 million, including capital injection projects for Air Macau, Air China Inner Mongolia and Sichuan Airlines Co., Ltd. Other capital expenditure project investments amounted to RMB771 million, mainly covering infrastructure construction, information system development and ground equipment procurement.
Equity Investment
As at the end of the Reporting Period, the Group's equity investment in its associates amounted to RMB14,286 million, representing a decrease of 2.37% from that of 31 December 2024. Among this, the balance of the equity investment of the Group in Cathay Pacific amounted to RMB13,951 million.
As at the end of the Reporting Period, the Group's equity investment in its joint ventures was RMB2,486 million, representing an increase of 2.57% from that as at 31 December 2024.
Debt Structure Analysis
At the end of the Reporting Period, the Group's total liabilities were RMB309,309 million, representing an increase of 1.47% from that as at 31 December 2024. Among them, current liabilities amounted to RMB126,209 million, accounting for 40.80% of the total liabilities; and non-current liabilities amounted to RMB183,100 million, accounting for 59.20% of the total liabilities.
Among the current liabilities, interest-bearing debts (including interest-bearing borrowings and lease liabilities) amounted to RMB76,696 million, representing a decrease of 16.64% from that as at 31 December 2024.
Among the non-current liabilities, interest-bearing debts (including interest-bearing borrowings and lease liabilities) amounted to RMB159,483 million, representing an increase of 10.77% from that as at 31 December 2024.
Details of interest-bearing liabilities of the Group categorised by currency are set out below:
|
|
30 June 2025 |
31 December 2024 |
Change |
||
|
(in RMB'000) |
Amount |
Percentage |
Amount |
Percentage |
|
|
|
|
|
|
|
|
|
RMB |
209,851,014 |
88.85% |
205,662,318 |
87.15% |
2.04% |
|
|
|
|
|
|
|
|
US dollars |
25,877,883 |
10.96% |
29,874,295 |
12.66% |
(13.38%) |
|
|
|
|
|
|
|
|
Others |
449,659 |
0.19% |
443,893 |
0.19% |
1.30% |
|
|
|
|
|
|
|
|
Total |
236,178,556 |
100.00% |
235,980,506 |
100.00% |
0.08% |
|
|
|
|
|
|
|
Details of the interest-bearing borrowings of the Group (including the range of interest rates) are set out in note 18 to the condensed consolidated financial statements of this interim report.
As at the end of the Reporting Period, the Group did not use financial instruments for hedging purposes.
Commitments
The Group's capital commitments, which mainly consisted of the expenditure in the next few years for purchasing certain aircraft and related equipment, decreased by 2.07% from RMB95,175 million as at 31 December 2024 to RMB93,200 million as at the end of the Reporting Period. The Group's investment commitments, which were mainly used for the investment agreements that have been signed and come into effect, amounted to RMB267 million as at the end of the Reporting Period, as compared with RMB313 million as at 31 December 2024.
Contingent Liabilities
At the end of the Reporting Period, the Group had no material contingent liabilities.
Gearing Ratio
As at the end of the Reporting Period, the Group's gearing ratio (total liabilities divided by total assets) was 89.00%, representing an increase of 0.84 percentage points from that as at 31 December 2024.
Working Capital and Its Sources
As at the end of the Reporting Period, the Group's net current liabilities (current liabilities less current assets) were RMB78,459 million, representing a decrease of RMB18,464 million from that as at 31 December 2024. The Group's current ratio (current assets divided by current liabilities) was 0.38, representing an increase of 0.08 as compared to that as at 31 December 2024.
The Group meets its working capital needs mainly through its operating activities and external financing activities. During the Reporting Period, the Group's net cash inflow from operating activities was RMB14,828 million, representing an increase of 4.03% from RMB14,253 million for the corresponding period in 2024. Net cash outflow from investing activities was RMB7,338 million, representing a decrease of 10.26% from RMB8,177 million for the corresponding period in 2024, mainly due to a year-on-year decrease in expenditures for the purchase of debt instruments measured at amortised cost. Net cash outflow from financing activities amounted to RMB3,218 million, representing an increase of 178.99% from RMB1,154 million for the corresponding period in 2024, mainly due to the repayment of bank loans and other borrowings during the current period.
At the end of the Reporting Period, the Company has obtained certain bank facilities of up to RMB278,622 million granted by several banks in the PRC, among which approximately RMB98,529 million has been utilised and approximately RMB180,093 million remained unutilised. The remaining amount is sufficient to meet its demands on liquidity and future capital commitments.
POTENTIAL RISKS
1. Risks of External Environment
Market Fluctuation
Relying on the super-sized domestic demand market, the domestic aviation market is expected to achieve steady growth. Against the backdrop of rapidly evolving global political, economic and trade dynamics, uncertainties persist in the development of the Company's traditionally strong international markets, particularly in North America. The Group will fully, precisely and comprehensively implement the new development philosophy, proactively support and integrate into the new development paradigm, anchor efforts on the domestic circulation, better support high-standard opening up, increase the international fleet capacity deployment, optimize its structure, and actively explore and cultivate emerging markets relating to the "Belt and Road" initiative.
Oil Price Fluctuation
Jet fuel is one of the major operating costs of the Group. The performance of the Group is affected to a certain extent by fluctuations in jet fuel prices. During the Reporting Period, with all other variables remaining unchanged, a 5% increase or decrease in the average jet fuel price would lead to a corresponding approximate increase or decrease of RMB1,216 million in the Group's jet fuel costs. The introduction of fuel surcharges has alleviated the Group's jet fuel cost pressure to some extent.
Exchange Rate Fluctuation
The Group's certain assets and liabilities are denominated in US dollar, while a portion of international revenue and expenses of the Group are settled in currencies other than RMB. Assuming all other risk variables remain unchanged, a 1% appreciation or depreciation of RMB against the US dollar would result in an increase or decrease of RMB133 million in the Group's net profit and shareholders' equity as of 30 June 2025. As of the end of the Reporting Period, the Group had no foreign exchange hedging instruments.
2. Risks of Competition
Industry competition
During the Reporting Period, as there was no significant reduction in the number of operating entities in the market, the Company continued to face relatively intense industry competition. The domestic market maintained a supply-demand imbalance characterized by increasing volume but declining prices. Influenced by market recovery, traffic right allocation and other factors, the resumption and launch of new international routes mainly concentrated in destinations such as Central Asia, West Asia and Europe, resulting in an intense competition in certain regions. Adhering to its strategy for hub network, the Company will devote efforts to building the Beijing-Chengdu dual-hub with a focus on developing strategic markets including the "Four-Pole Clusters" and Xinjiang, thereby achieving differentiated development from other market competitors. Consistent efforts will be made to optimize competitive domestic and international route networks centering around hubs as well as principal bases and markets, while introducing efficient and convenient domestic route and express route products to strengthen core market competitiveness through high-quality products and services.
Alternative competition
As the world's largest high-speed railway network further expanded, there is an ongoing risk of passenger diversion in short- and medium-distance transportation. In the long run, high-speed railway will reshape China's economic geography. The civil aviation sector shall give full play to its comparative advantages within the comprehensive transportation system by increasing fleet capacity on domestic long-haul and international routes, and expanding public travel services to remote regions. Meanwhile, leveraging air-rail intermodal transport as a key support for the development of aviation hubs, advancing the optimization and upgrade of transit products, and delivering universally accessible, high-quality integrated transportation services to the public.
Corporate Governance and Other Information
CHANGES IN THE INFORMATION OF DIRECTORS, SUPERVISORS AND SENIOR MANAGEMENT OF THE COMPANY
1. On 25 February 2025, Mr. Ma Chongxian, Mr. Wang Mingyuan, Mr. Cui Xiaofeng and Mr. Patrick Healy were elected as non-independent Directors of the seventh session of the Board of the Company at the 2025 first extraordinary general meeting of the Company. Mr. Xu Niansha, Mr. He Yun, Ms. Winnie Tam Wan-chi and Mr. Gao Chunlei were elected as the independent non-executive Directors of the seventh session of the Board of the Company. Mr. Xu Junxin ceased to be an independent non-executive Director of the Company due to expiry of term of office. The thirteenth meeting of the third session of the employee representatives congress of the Company elected Mr. Xiao Peng as the employee representative Director of the seventh session of the Board of the Company. For details, please refer to the announcements of the Company dated 27 January 2025 and 25 February 2025.
In addition, on 30 August 2024, Mr. Li Fushen resigned as an independent non-executive Director of the Company as well as from other duties. In subsequent months, the Company has been actively considering and processing the adjustment of the composition of the Audit and Risk Management Committee (the Supervision Committee) and the Nomination Committee, including but not limited to exploring the candidate who will fill the vacancy resulted from Mr. Li Fushen's resignation. As such, the Company has applied to the Hong Kong Stock Exchange and the Hong Kong Stock Exchange has agreed to grant a waiver from strict compliance with Rules 3.21 and 3.27A of the Listing Rules, and extend the deadline for filling the vacancy from 30 November 2024 to 28 February 2025. Immediately following the election of Directors of the seventh session of the Board and the change of the Board committee members, the Company has fully complied with the requirements as set out in Rules 3.21 and 3.27A of the Listing Rules. For details, please refer to the announcements of the Company dated 30 August 2024, 27 December 2024 and 25 February 2025.
2. On 24 June 2025, the resolution on the amendments to the Articles of Associations and the abolishment of the Supervisory Committee was approved at the 2024 annual general meeting of the Company. Since 24 June 2025, the Company no longer maintains the Supervisory Committee and Supervisor positions. For details, please refer to the announcement of the Company dated 24 June 2025.
3. On 31 July 2025, Mr. Huen Ho Yin ("Mr. Huen") resigned as the joint company secretary of the Company with effect from 1 August 2025. Mr. Xiao Feng continues to serve and act as the sole company secretary of the Company after the resignation of Mr. Huen. Mr. Xiao Feng has been admitted as a fellow of both The Hong Kong Chartered Governance Institute and The Chartered Governance Institute. Mr. Leung Yik Fung replaced Mr. Huen as the agent of the Company for accepting service of process and notices on behalf of the Company in Hong Kong under Rule 19A.13(2) of the Listing Rules with effect from 1 August 2025. For details, please refer to the announcement of the Company dated 31 July 2025.
SHAREHOLDINGS OF DIRECTORS, CHIEF EXECUTIVE AND SUBSTANTIAL SHAREHOLDERS OF THE COMPANY
INTERESTS OF DIRECTORS AND CHIEF EXECUTIVE
As at the end of the Reporting Period, none of the Directors or the chief executive of the Company had interests or short positions in the shares, underlying shares and/or debentures (as the case may be) of the Company or its associated corporations (within the meaning of Part XV of the SFO) which shall be recorded and maintained in the register kept by the Company pursuant to section 352 of the SFO, or which shall be notified to the Company and the Hong Kong Stock Exchange pursuant to the Model Code.
Cathay Pacific is currently a substantial shareholder of the Company holding 2,633,725,455 H Shares of the Company as at the end of the Reporting Period. Such interests are required to be disclosed to the Company in accordance with Divisions 2 and 3 under Part XV of the SFO. During the Reporting Period, Mr. Ma Chongxian, Mr. Wang Mingyuan (executive Directors of the Company) and Mr. Patrick Healy (non-executive Director of the Company) also served as directors of Cathay Pacific. Cathay Pacific competes or is likely to compete either directly or indirectly with some aspects of the business of the Company as it operates airline services to certain destinations, which are also served by the Company.
Save as disclosed above, none of the Directors of the Company and their respective close associates (as defined in the Listing Rules) has any competing interests which shall be disclosed under Rule 8.10 of the Listing Rules.
SUBSTANTIAL SHAREHOLDERS' INTERESTS IN THE COMPANY
As at the end of the Reporting Period, to the knowledge of the Directors and chief executive of the Company, the following persons (other than the Directors or chief executive of the Company) had interests or short positions in the shares or underlying shares of the Company as recorded in the register required to be kept pursuant to Section 336 of the SFO:
|
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 |
7,421,462,701 A Shares |
42.53% |
59.41% |
- |
- |
|
CNAHC (1) |
Equity attributable |
1,332,482,920 A Shares |
7.64% |
10.67% |
- |
- |
|
CNAHC (1) |
Equity attributable |
616,779,308 H Shares |
3.54% |
- |
12.45% |
- |
|
CNACG |
Beneficial owner |
1,332,482,920 A Shares |
7.64% |
10.67% |
- |
- |
|
CNACG |
Beneficial owner |
616,779,308 H Shares |
3.54% |
- |
12.45% |
- |
|
Cathay Pacific |
Beneficial owner |
2,633,725,455 H Shares |
15.09% |
- |
53.15% |
- |
|
Swire Pacific Limited(2) |
Equity attributable |
2,633,725,455 H Shares |
15.09% |
- |
53.15% |
- |
|
John Swire & Sons (H.K.) Limited(2) |
Equity attributable |
2,633,725,455 H Shares |
15.09% |
- |
53.15% |
- |
|
John Swire & Sons Limited(2) |
Equity attributable |
2,633,725,455 H Shares |
15.09% |
- |
53.15% |
- |
|
|
|
|
|
|
|
|
Notes:
Based on the information available to the Directors and chief executive (including such information as was available on the website of the Hong Kong Stock Exchange) and to the knowledge of the Directors and chief executive, as at the end of the Reporting Period:
1. By virtue of CNAHC's 100% interest in CNACG, CNAHC was deemed to be interested in the 1,332,482,920 A Shares and 616,779,308 H Shares directly held by CNACG.
2. By virtue of John Swire & Sons Limited's 100% interest in John Swire & Sons (H.K.) Limited and their approximately 64.45% equity interest and 70.97% voting rights in Swire Pacific Limited, and Swire Pacific Limited's approximately 44.98% equity interest in Cathay Pacific as at the end of the Reporting Period, John Swire & Sons Limited, John Swire & Sons (H.K.) Limited and Swire Pacific Limited were deemed to be interested in the 2,633,725,455 H Shares of the Company directly held by Cathay Pacific.
Save as disclosed above, as at the end of the Reporting Period, to the knowledge of the Directors and chief executive of the Company, no other person had an interest or short position in the shares or underlying shares of the Company as recorded in the register required to be kept pursuant to Section 336 of the SFO.
TOTAL NUMBER OF SHAREHOLDERS
|
|
|
|
Total number of holders of ordinary shares as at the end of the Reporting Period (account) |
129,205 accounts, of which 2,777 accounts are registered holders of H Shares |
|
|
|
INFORMATION OF SHAREHOLDERS
|
|
|||||||
|
Unit: Share |
|||||||
|
|
|||||||
|
Shareholdings of the top 10 shareholders (excluding shares lent through securities lending and refinancing) |
|||||||
|
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 |
|
Nature of |
|
|
|
|||||||
|
Status |
Number |
||||||
|
|
|
|
|
|
|
|
|
|
China National Aviation Holding Corporation Limited |
0 |
7,421,462,701 |
42.53 |
854,700,854 |
Frozen |
127,445,536 |
State-owned legal person |
|
Cathay Pacific Airways Limited |
0 |
2,633,725,455 |
15.09 |
0 |
Nil |
0 |
Foreign legal person |
|
China National Aviation Corporation (Group) Limited |
0 |
1,949,262,228 |
11.18 |
392,927,308 |
Frozen |
36,454,464 |
Foreign legal person |
|
HKSCC NOMINEES LIMITED |
275,350 |
1,689,880,685 |
9.69 |
0 |
Nil |
0 |
Foreign legal person |
|
China Securities Finance Corporation Limited |
0 |
311,302,365 |
1.78 |
0 |
Nil |
0 |
Other |
|
Hong Kong Securities Clearing Company Limited |
-21,281,787 |
279,073,653 |
1.60 |
0 |
Nil |
0 |
Foreign legal person |
|
China National Aviation Fuel Group Corporation |
0 |
238,524,158 |
1.37 |
0 |
Nil |
0 |
State-owned legal person |
|
National Social Security Fund 114 Portfolio (全國社保基金一一四組合) |
68,249,185 |
68,249,185 |
0.39 |
0 |
Nil |
0 |
Other |
|
Industrial and Commercial Bank of China - Huatai-PineBridge CSI 300 Exchange-traded Open-end Index Securities Investment Fund (中國工商銀行股份有限公司－華泰柏瑞滬深300交易型開放式指數證券投資基金) |
2,177,700 |
66,800,769 |
0.38 |
0 |
Nil |
0 |
Other |
|
China Structural Reform Fund Co., Ltd. (中國國有企業結構調整基金股份有限公司) |
0 |
52,833,706 |
0.30 |
0 |
Nil |
0 |
State-owned legal person |
|
|
|
|
|
|
|
|
|
|
|
|||
|
Unit: Share |
|||
|
|
|||
|
Shareholdings of the top 10 shareholders |
|||
|
Name of shareholder |
Number of tradable shares held not subject to selling restrictions |
|
|
|
Type |
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 |
1,689,880,685 |
Overseas listed foreign shares |
1,689,880,685 |
|
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 Securities Finance Corporation Limited |
311,302,365 |
RMB ordinary shares |
311,302,365 |
|
Hong Kong Securities Clearing Company Limited |
279,073,653 |
RMB ordinary shares |
279,073,653 |
|
China National Aviation Fuel Group Limited |
238,524,158 |
RMB ordinary shares |
238,524,158 |
|
National Social Security Fund 114 Portfolio (全國社保基金一一四組合) |
68,249,185 |
RMB ordinary shares |
68,249,185 |
|
Industrial and Commercial Bank of China -Huatai-PineBridge CSI 300 Exchange-traded Open-end Index Securities Investment Fund (中國工商銀行股份有限公司－華泰柏瑞滬深300交易型開放式指數證券投資基金) |
66,800,769 |
RMB ordinary shares |
66,800,769 |
|
China Structural Reform Fund Co., Ltd. (中國國有企業結構調整基金股份有限公司) |
52,833,706 |
RMB ordinary shares |
52,833,706 |
|
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 related 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 preference shareholders whose voting rights have been restored and the number of shares held |
Nil |
||
|
|
|
||
1. HKSCC NOMINEES LIMITED is a subsidiary of The Stock Exchange of Hong Kong Limited and its principal business is acting as nominee for and on behalf of other corporate shareholders or individual shareholders. The 1,689,800,685 H Shares held by it in the Company do not include the 166,852,000 shares held by it as nominee of CNACG.
2. According to the "Implementation Measures on Partial Transfer of State-owned Shares to the National Social Security Fund in the Domestic Securities Market" (Cai Qi [2009] No. 94) (《境內證券市場轉持部分國有股充實全國社會保障基金實施辦法》(財企[2009]94號)) and the Notice (2009 No. 63) jointly issued by the Ministry of Finance, the State-owned Assets Supervision and Administration Commission of the State Council, China Securities Regulatory Commission and the National Council for Social Security Fund, 127,445,536 and 36,454,464 shares held by CNAHC, the controlling shareholder of the Company, and CNACG respectively are frozen at present.
|
|
|||||
|
Unit: Share |
|||||
|
|
|||||
|
Shareholdings of the top 10 shareholders subject to selling restrictions and conditions of selling restrictions |
|||||
|
No. |
Name of shareholder subject to selling restrictions |
Number of |
Listing and trading status of |
Selling restrictions |
|
|
Date of being permitted for listing and trading |
Number of shares to be listed and traded |
||||
|
|
|||||
|
1 |
China National Aviation Holding Corporation Limited |
854,700,854 |
10 December 2027 |
854,700,854 |
Lock-up period of 36 months |
|
2 |
China National Aviation Corporation (Group) Limited |
392,927,308 |
8 February 2027 |
392,927,308 |
Lock-up period of 36 months |
|
Explanation on related relationship or action in |
|
CNACG is a wholly-owned subsidiary of CNAHC. |
|||
|
|
|
|
|
|
|
CORPORATE GOVERNANCE
Compliance with the Corporate Governance Code
The Company has complied with the code provisions in Part 2 of the Corporate Governance Code as set out in Appendix C1 to the Listing Rules throughout the Reporting Period.
Compliance with the Model Code
The Company has adopted and formulated a code of conduct on terms no less stringent than the required standards of the Model Code. After making specific enquiries, the Company confirmed that each Director and each Supervisor has complied with the required standards of the Model Code and the Company's code of conduct throughout the Reporting Period.
OTHER SIGNIFICANT MATTERS
On 28 May 2025, at the 4th meeting of the seventh session of the Board of the Company, resolutions in relation to the amendments to the Articles of Association and the abolishment of the Supervisory Committee, the amendments to the Rules and Procedures of Shareholders' Meetings and the amendments to the Rules and Procedures of Meetings of the Board were considered and approved. On 24 June 2025, the above-mentioned resolutions were considered and approved at the 2024 annual general meeting of the Company. For details, please refer to the announcements of the Company dated 28 May 2025 and 24 June 2025.
As considered and approved at the 2nd meeting of the seventh session of the Board of the Company and approved at the 2024 annual general meeting, KPMG was appointed as the Company's international auditor for the year 2025 and KPMG Huazhen LLP was appointed as the Company's domestic auditor and internal control auditor for the year 2025. For details, please refer to the announcements of the Company dated 27 March 2025 and 24 June 2025.
On 29 July 2025, as considered and approved at the 5th meeting of the seventh session of the Board of the Company, the Company entered into an agreement with Air China Cargo, pursuant to which the Company sold two Trent700 spare engines and one GTCP331-350 spare APU to Air China Cargo at a selling price of RMB151.4405 million (exclusive of tax). For details, please refer to the announcement of the Company dated 29 July 2025.
On 28 August 2025, the Company announced that Shenzhen Airlines proposes to carry out an equity financing with a total financing amount of RMB16 billion (the "Financing"), among which, the Company intends to participate in the Financing by making capital contribution proportionate to its current 51% equity interests in Shenzhen Airlines. The total capital contribution to be made by the Company in the Financing will not exceed RMB8.16 billion. The Financing will be conducted in stages. For the initial tranche of the Financing (the "Initial Financing"), it is proposed that one investor (the "Investor") will be solicited through the Shenzhen United Property and Equity Exchange to invest RMB2 billion in cash. Concurrently, the Company will make a cash capital contribution by way of a non-public agreement in the amount of RMB2.08163 billion. Upon completion of the Financing, the Company's equity interests in Shenzhen Airlines will remain unchanged at 51%, and Shenzhen Airlines will remain a subsidiary of the Company. For details, please refer to the announcement of the Company dated 28 August 2025.
USE OF PROCEEDS RAISED FROM THE ISSUANCE OF A SHARES TO SPECIFIC INVESTOR
In order to enhance fleet strength, consolidate competitive advantages, accelerate the realization of the Company's strategic planning, replenish working capital, implement safety production responsibilities, meet the Company's capital requirement for business development, improve capital structure, strengthen financial soundness and enhance the Company's comprehensive risk resistance capability, on 10 December 2024, the Company issued 854,700,854 A Shares to CNAHC (with a total nominal value of RMB854,700,854) at the issue price of RMB7.02 per share (the "Issuance of A Shares to Specific Investor"), raising net proceeds of RMB5,995,841,631.45 or net proceeds of RMB7.0151 per A Share issued to the specific investor. For details, please refer to the announcement of the Company dated 12 December 2024. On 22 December 2023 (being the date on which the terms of the issue were fixed), the closing price of the Company's A Shares was RMB7.17 per share. During the Reporting Period, the net proceeds from the Issuance of A Shares to Specific Investor have been utilized according to the plan disclosed by the Company. The following table shows the use of net proceeds from the Issuance of A Shares to Specific Investor:
|
|
|||||
|
Unit: RMB |
|||||
|
|
|||||
|
Committed investment project |
Total committed investment of proceeds raised |
Outstanding |
Amount utilised |
Outstanding |
Expected timeline for the completion of utilisation of proceeds raised |
|
|
|
|
|
|
|
|
Introduction of 17 aircraft |
4,195,841,631.45 |
3,396,240,456.16 |
2,941,840,127.91 |
454,400,328.25 |
By 31 December 2026Note |
|
Replenishing working capital |
1,800,000,000.00 |
Nil |
Nil |
Nil |
N/A |
|
|
|
|
|
|
|
Note: The expected timeline for the utilization of the proceeds is estimated based on the Company's current available information and may be subject to change depending on the actual delivery schedule of the aircraft.
BASIC INFORMATION OF NON-FINANCIAL CORPORATE DEBT FINANCING INSTRUMENTS
The following is the basic information of the Group's non-financial corporate debt financing instruments as at the end of the Reporting Period:
|
|
||||||||
|
Unit: RMB billion, Currency: RMB |
||||||||
|
|
||||||||
|
Name of Bond |
Abbreviation |
Code |
Issue Date |
Value Date |
Expiry Date |
Balance of |
Interest |
Payment of |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Air China Limited 2025 Super Short-term Commercial Paper (First Tranche) |
25ACSCP001 |
012580391 |
17 February 2025 |
18 February 2025 |
15 November 2025 |
2.013 |
1.82 |
One-off payment of principal and interest on maturity |
|
Air China Limited 2025 Super Short-term Commercial Paper (Second Tranche) |
25ACSCP002 |
012580449 |
20 February 2025 |
21 February 2025 |
18 November 2025 |
2.517 |
1.90 |
One-off payment of principal and interest on maturity |
|
Air China Limited 2025 Super Short-term Commercial Paper (Third Tranche) |
25ACSCP003 |
012580860 |
10 April 2025 |
11 April 2025 |
8 October 2025 |
3.011 |
1.62 |
One-off payment of principal and interest on maturity |
|
Air China Limited 2025 Super Short-term Commercial Paper (Fourth Tranche) |
25ACSCP004 |
012581468 |
20 June 2025 |
23 June 2025 |
20 March 2026 |
2.001 |
1.51 |
One-off payment of principal and interest on maturity |
|
Air China Limited 2022 Medium Term Note (First Tranche) |
22ACMTN001 |
102282150 |
22 September 2022 |
23 September 2022 |
23 September 2025 |
3.059 |
2.54 |
Interest on annual basis Repayment of principal on maturity |
|
Air China Limited 2024 Medium Term Note (First Tranche) |
24ACMTN001 |
102482159 |
4 June 2024 |
5 June 2024 |
5 June 2027 |
1.002 |
2.25 |
Interest on annual basis Repayment of principal on maturity |
|
Air China Limited 2024 Medium Term Note (Second Tranche) |
24ACMTN002 |
102484189 |
19 September 2024 |
20 September 2024 |
20 September 2027 |
3.047 |
2.03 |
Interest on annual basis Repayment of principal on maturity |
|
Air China Limited 2024 Medium Term Note (Third Tranche) |
24ACMTN003 |
102484862 |
11 November 2024 |
12 November 2024 |
12 November 2027 |
2.027 |
2.15 |
Interest on annual basis Repayment of principal on maturity |
|
Air China Limited 2025 Medium Term Note (First Tranche) |
25ACMTN001 |
102581251 |
19 March 2025 |
20 March 2025 |
20 March 2028 |
2.514 |
2.03 |
Interest on annual basis Repayment of principal on maturity |
|
Air China Limited 2025 Medium Term Note (Second Tranche) |
25ACMTN002 |
102581322 |
21 March 2025 |
24 March 2025 |
24 March 2030 |
2.012 |
2.15 |
Interest on annual basis Repayment of principal on maturity |
|
Air China Limited 2025 Medium Term Note (Third Tranche) |
25ACMTN003 |
102581710 |
17 April 2025 |
18 April 2025 |
18 April 2028 |
2.007 |
1.82 |
Interest on annual basis Repayment of principal on maturity |
|
Air China Limited 2025 Medium Term Note (Fourth Tranche) |
25ACMTN004 |
102581862 |
24 April 2025 |
25 April 2025 |
25 April 2028 |
2.508 |
1.85 |
Interest on annual basis Repayment of principal on maturity |
|
Air China Limited 2025 Medium Term Note (Fifth Tranche) |
25ACMTN005 |
102582133 |
22 May 2025 |
23 May 2025 |
23 May 2028 |
3.006 |
1.77 |
Interest on annual basis Repayment of principal on maturity |
|
Air China Limited 2025 Medium Term Note (Sixth Tranche) |
25ACMTN006 |
102582162 |
26 May 2025 |
27 May 2025 |
27 May 2028 |
3.005 |
1.76 |
Interest on annual basis Repayment of principal on maturity |
|
Air China Limited 2025 Medium Term Note (Seventh Tranche) |
25ACMTN007 |
102582570 |
23 June 2025 |
24 June 2025 |
24 June 2028 |
2.001 |
1.74 |
Interest on annual basis Repayment of principal on maturity |
|
|
|
|
|
|
|
|
|
|
The bonds set out in the table, namely "25ACSCP001", "25ACSCP002", "25ACSCP003", "25ACSCP004", "22ACMTN001", "24ACMTN001", "24ACMTN002", "24ACMTN003", "25ACMTN001", "25ACMTN002", "25ACMTN003", "25ACMTN004", "25ACMTN005", "25ACMTN006" and "25ACMTN007" are all traded on the interbank bond market, issued to institutional investors in the national interbank bond market, performed in accordance with the trading rules of the National Interbank Funding Centre (全國銀行間同業拆借中心), and are not subject to the risk of termination of listing and trading.
PURCHASE, SALE OR REDEMPTION OF LISTED SECURITIES
During the Reporting Period, neither the Company nor any of its subsidiaries purchased, sold or redeemed any listed securities of the Company (including the sale of Treasury Shares) (the term "securities" has the meaning ascribed to it under paragraph 1 of Appendix D2 to the Listing Rules).
As at the end of the Reporting Period, the Company did not hold any Treasury Shares.
INTERIM DIVIDEND
No interim dividend will be paid by the Company for the six months ended 30 June 2025.
REVIEW BY THE AUDIT AND RISK MANAGEMENT COMMITTEE (THE SUPERVISION COMMITTEE)
The audit and risk control committee (the supervision committee) of the Company has reviewed the Company's interim report for the six months ended 30 June 2025, the Company's unaudited interim condensed consolidated financial statements and the accounting policies and practices adopted by the Group.
OTHER INFORMATION
In order to comply with paragraph 40 of Appendix D2 to the Listing Rules, save as disclosed herein, the Company confirmed that there are no material changes in the current information of the Company in relation to matters as set out in paragraph 32 of Appendix D2 to the Listing Rules as compared with the relevant disclosures in the 2024 annual report of the Company.
SUBSEQUENT EVENTS
For subsequent events, please refer to the sections headed "Changes in the Information of Directors, Supervisors and Senior Management of the Company" and "Other Significant Matters" of this report.
Independent Review Report
TO THE BOARD OF DIRECTORS OF AIR CHINA LIMITED
(中國國際航空股份有限公司)
(Incorporated in the People's Republic of China with limited liability)
INTRODUCTION
We have reviewed the accompanying interim financial report, which comprises the consolidated statement of financial position of Air China Limited as of 30 June 2025, the related consolidated statement of profit or loss, statement of profit or loss and other comprehensive income, statement of changes in equity and condensed consolidated statement of cash flows for the six-month period then ended and explanatory notes. The Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited require the preparation of an interim financial report to be in compliance with the relevant provisions thereof and International Accounting Standard 34, Interim Financial Reporting, issued by the International Accounting Standards Board. The directors are responsible for the preparation and presentation of the interim financial report in accordance with International Accounting Standard 34.
Our responsibility is to form a conclusion, based on our review, on the interim financial report and to report our conclusion solely to you, as a body, in accordance with our agreed terms of engagement, and for no other purpose. We do not assume responsibility towards or accept liability to any other person for the contents of this report.
SCOPE OF REVIEW
We conducted our review in accordance with International Standard on Review Engagements 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity, issued by the International Auditing and Assurance Standards Board. A review of interim financial report consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
CONCLUSION
Based on our review, nothing has come to our attention that causes us to believe that the interim financial report as at 30 June 2025 is not prepared, in all material respects, in accordance with International Accounting Standard 34 Interim Financial Reporting.
KPMG Huazhen LLP
Certified Public Accountants
(Registered as a Third Country Auditor with the UK Financial Reporting Council)
Beijing, China
28 August 2025
Consolidated Statement of Profit or Loss
For the Six Months Ended 30 June 2025 - unaudited
(Expressed in Renminbi ("RMB"))
|
|
|
Six months ended 30 June |
|
|
|
NOTES |
2025 |
2024 |
|
|
|
RMB'000 |
RMB'000 |
|
|
|
|
|
|
|
|
|
|
|
Revenue |
3 |
80,757,434 |
79,520,332 |
|
Other income and gains |
5 |
2,615,845 |
3,250,850 |
|
|
|
|
|
|
|
|
|
|
|
|
|
83,373,279 |
82,771,182 |
|
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
Jet fuel costs |
|
(24,327,485) |
(27,132,269) |
|
Employee compensation costs |
|
(17,849,218) |
(16,953,921) |
|
Depreciation and amortisation |
|
(14,837,638) |
(14,025,285) |
|
Take-off, landing and depot charges |
|
(10,613,810) |
(9,963,482) |
|
Aircraft maintenance, repair and overhaul costs |
|
(7,292,075) |
(6,862,447) |
|
Air catering charges |
|
(2,104,979) |
(1,973,435) |
|
Aircraft and engine lease expenses |
|
(342,162) |
(261,132) |
|
Other lease expenses |
|
(366,175) |
(346,900) |
|
Other flight operation expenses |
|
(4,040,914) |
(3,263,760) |
|
Selling and marketing expenses |
|
(2,410,378) |
(2,275,875) |
|
General and administrative expenses |
|
(797,634) |
(780,314) |
|
Impairment loss recognised on non-current assets |
|
(85,154) |
- |
|
Net impairment loss recognised under expected credit loss model |
|
(2,087) |
(14,334) |
|
|
|
|
|
|
|
|
|
|
|
|
|
(85,069,709) |
(83,853,154) |
|
|
|
|
|
|
|
|
|
|
|
Loss from operations |
6 |
(1,696,430) |
(1,081,972) |
|
Finance income |
|
285,792 |
245,615 |
|
Finance costs |
7 |
(2,890,954) |
(3,265,473) |
|
Share of results of associates |
|
1,220,174 |
1,084,817 |
|
Share of results of joint ventures |
|
117,208 |
91,360 |
|
Exchange gain/(losses), net |
|
176,308 |
(360,422) |
|
|
|
|
|
|
|
|
|
|
|
Loss before taxation |
|
(2,787,902) |
(3,286,075) |
|
Income tax credit/(expense) |
8 |
77,797 |
(252,536) |
|
|
|
|
|
|
|
|
|
|
|
Loss for the period |
|
(2,710,105) |
(3,538,611) |
|
|
|
|
|
|
|
|
|
|
|
Attributable to: |
|
|
|
|
- Equity shareholders of the Company |
|
(1,804,820) |
(2,778,953) |
|
- Non-controlling interests |
|
(905,285) |
(759,658) |
|
|
|
|
|
|
|
|
|
|
|
|
|
(2,710,105) |
(3,538,611) |
|
|
|
|
|
|
|
|
|
|
|
Loss per share |
|
|
|
|
- Basic and diluted (RMB) |
10 |
RMB(0.11) |
RMB(0.18) |
|
|
|
|
|
The notes on pages 38 to 61 form part of this interim financial report.
Consolidated Statement of Profit or Loss
and Other Comprehensive Income
For the Six Months Ended 30 June 2025 - unaudited
(Expressed in RMB)
|
|
Six months ended 30 June |
|
|
|
2025 |
2024 |
|
|
RMB'000 |
RMB'000 |
|
|
|
|
|
|
|
|
|
Loss for the period |
(2,710,105) |
(3,538,611) |
|
|
|
|
|
|
|
|
|
Other comprehensive income for the period |
|
|
|
Items that will not be reclassified to profit or loss: |
|
|
|
- Fair value gain/(losses) on investments in equity instruments |
42,421 |
(86,078) |
|
- Remeasurement of net defined benefit liability |
9 |
(5,741) |
|
- Share of other comprehensive income of an associate |
(556) |
(361) |
|
- Income tax (expense)/credit relating to items that will not be |
(10,291) |
21,519 |
|
|
|
|
|
|
|
|
|
Items that may be reclassified subsequently to profit or loss: |
|
|
|
- Fair value (losses)/gains on investments in debt instruments |
(10,644) |
14,619 |
|
- Share of other comprehensive income of associates and joint ventures |
(362,428) |
232,792 |
|
- Exchange differences on translation of foreign operations |
(362,807) |
137,205 |
|
- Impairment loss recognised on investments in debt instruments |
(235) |
(236) |
|
- Income tax credit/(expense) relating to items that may be |
2,720 |
(3,597) |
|
|
|
|
|
|
|
|
|
Other comprehensive income for the period, net of tax |
(701,811) |
310,122 |
|
|
|
|
|
|
|
|
|
Total comprehensive income for the period |
(3,411,916) |
(3,228,489) |
|
|
|
|
|
|
|
|
|
Attributable to: |
|
|
|
- Equity shareholders of the Company |
(2,504,603) |
(2,433,924) |
|
- Non-controlling interests |
(907,313) |
(794,565) |
|
|
|
|
|
|
|
|
|
|
(3,411,916) |
(3,228,489) |
|
|
|
|
The notes on pages 38 to 61 form part of this interim financial report.
Consolidated Statement of
Financial Position
At 30 June 2025 - unaudited
(Expressed in RMB)
|
|
|
At 30 June |
At 31 December |
|
|
NOTES |
2025 |
2024 |
|
|
|
RMB'000 |
RMB'000 |
|
|
|
|
|
|
|
|
|
|
|
Non-current assets |
|
|
|
|
Property, plant and equipment |
11 |
124,153,264 |
122,180,871 |
|
Right-of-use assets |
11 |
112,987,896 |
118,832,142 |
|
Investment properties |
|
676,264 |
693,059 |
|
Intangible assets |
|
106,584 |
106,563 |
|
Goodwill |
|
4,095,732 |
4,095,732 |
|
Interests in associates |
12 |
14,285,989 |
14,632,923 |
|
Interests in joint ventures |
|
2,486,232 |
2,423,853 |
|
Advance payments for aircraft and flight equipment |
|
23,334,608 |
24,689,737 |
|
Deposits for aircraft under leases |
|
532,947 |
526,004 |
|
Equity instruments at fair value through |
|
2,073,694 |
1,791,273 |
|
Debt instruments at fair value through |
|
1,290,262 |
1,426,851 |
|
Deferred tax assets |
|
13,159,241 |
12,959,766 |
|
Other non-current assets |
|
606,259 |
704,196 |
|
|
|
|
|
|
|
|
|
|
|
|
|
299,788,972 |
305,062,970 |
|
|
|
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
Inventories |
|
4,752,910 |
4,224,992 |
|
Accounts receivable |
13 |
4,783,169 |
3,670,252 |
|
Bills receivable |
|
6,402 |
7,785 |
|
Prepayments, deposits and other receivables |
14 |
5,333,200 |
5,223,257 |
|
Financial assets at fair value through profit or loss |
|
153,221 |
37,559 |
|
Time deposits and restricted deposits |
|
2,591,176 |
1,428,429 |
|
Cash and cash equivalents |
|
25,331,101 |
21,039,472 |
|
Assets held for sale |
|
147,048 |
94,829 |
|
Other current assets |
|
4,651,923 |
4,960,628 |
|
|
|
|
|
|
|
|
|
|
|
|
|
47,750,150 |
40,687,203 |
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
347,539,122 |
345,750,173 |
|
|
|
|
|
The notes on pages 38 to 61 form part of this interim financial report.
|
|
NOTES |
At 30 June |
At 31 December |
|
|
|
RMB'000 |
RMB'000 |
|
|
|
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
Air traffic liabilities |
|
(11,388,539) |
(11,098,740) |
|
Accounts payable |
15 |
(19,653,382) |
(18,869,784) |
|
Dividends payable |
|
(98,000) |
(98,000) |
|
Other payables and accruals |
16 |
(15,056,991) |
(13,437,502) |
|
Advance |
|
(1,264) |
(36,270) |
|
Current taxation |
|
(42,483) |
(130,653) |
|
Lease liabilities |
17 |
(16,666,649) |
(17,464,654) |
|
Interest-bearing borrowings |
18 |
(60,029,434) |
(74,544,705) |
|
Provision for return condition checks |
|
(1,716,556) |
(758,575) |
|
Contract liabilities |
|
(1,555,806) |
(1,171,172) |
|
|
|
|
|
|
|
|
|
|
|
|
|
(126,209,104) |
(137,610,055) |
|
|
|
|
|
|
|
|
|
|
|
Net current liabilities |
|
(78,458,954) |
(96,922,852) |
|
|
|
|
|
|
|
|
|
|
|
Total assets less current liabilities |
|
221,330,018 |
208,140,118 |
|
|
|
|
|
|
|
|
|
|
|
Non-current liabilities |
|
|
|
|
Lease liabilities |
17 |
(53,759,875) |
(59,134,187) |
|
Interest-bearing borrowings |
18 |
(105,722,598) |
(84,836,960) |
|
Provision for return condition checks |
|
(19,507,071) |
(19,228,054) |
|
Provision for early retirement benefit obligations |
|
(354) |
(359) |
|
Long-term payables |
|
(720,589) |
(727,741) |
|
Contract liabilities |
|
(2,650,359) |
(2,565,188) |
|
Defined benefit obligations |
|
(178,238) |
(186,700) |
|
Deferred income |
|
(425,901) |
(406,943) |
|
Deferred tax liabilities |
|
(135,036) |
(128,016) |
|
|
|
|
|
|
|
|
|
|
|
|
|
(183,100,021) |
(167,214,148) |
|
|
|
|
|
|
|
|
|
|
|
NET ASSETS |
|
38,229,997 |
40,925,970 |
|
|
|
|
|
The notes on pages 38 to 61 form part of this interim financial report.
|
|
NOTES |
At 30 June |
At 31 December |
|
|
|
RMB'000 |
RMB'000 |
|
|
|
|
|
|
|
|
|
|
|
CAPITAL AND RESERVES |
|
|
|
|
Issued capital |
19 |
17,448,421 |
17,448,421 |
|
Reserves |
|
25,175,148 |
27,679,751 |
|
|
|
|
|
|
|
|
|
|
|
Total equity attributable to equity shareholders of the Company |
|
42,623,569 |
45,128,172 |
|
Non-controlling interests |
|
(4,393,572) |
(4,202,202) |
|
|
|
|
|
|
|
|
|
|
|
TOTAL EQUITY |
|
38,229,997 |
40,925,970 |
|
|
|
|
|
Approved and authorised for issue by the board of directors on 28 August 2025.
|
Ma Chongxian |
Wang Mingyuan |
|
Director |
Director |
The notes on pages 38 to 61 form part of this interim financial report.
Consolidated Statement of
Changes in Equity
For the Six Months Ended 30 June 2025 - unaudited
(Expressed in RMB)
|
|
|
Attributable to equity shareholders of the Company |
|
|
||||||
|
|
|
|
|
|
||||||
|
|
Note |
Issued |
Capital |
Reserve |
General reserve |
Foreign |
Accumulated losses |
Subtotal |
Non- |
Total |
|
|
|
RMB'000 |
RMB'000 |
RMB'000 |
RMB'000 |
RMB'000 |
RMB'000 |
RMB'000 |
RMB'000 |
RMB'000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at 1 January 2025 |
|
17,448,421 |
46,832,986 |
11,564,287 |
177,506 |
(743,025) |
(30,152,003) |
45,128,172 |
(4,202,202) |
40,925,970 |
|
Changes in equity for the |
|
|
|
|
|
|
|
|
|
|
|
Loss for the period |
|
- |
- |
- |
- |
- |
(1,804,820) |
(1,804,820) |
(905,285) |
(2,710,105) |
|
Other comprehensive income |
|
- |
(335,298) |
- |
- |
(364,485) |
- |
(699,783) |
(2,028) |
(701,811) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income |
|
- |
(335,298) |
- |
- |
(364,485) |
(1,804,820) |
(2,504,603) |
(907,313) |
(3,411,916) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital increase by non-controlling |
|
- |
- |
- |
- |
- |
- |
- |
715,943 |
715,943 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at 30 June 2025 |
|
17,448,421 |
46,497,688 |
11,564,287 |
177,506 |
(1,107,510) |
(31,956,823) |
42,623,569 |
(4,393,572) |
38,229,997 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at 1 January 2024 |
|
16,200,793 |
40,368,217 |
11,564,287 |
156,687 |
(1,176,240) |
(29,907,769) |
37,205,975 |
(1,941,966) |
35,264,009 |
|
Changes in equity for the |
|
|
|
|
|
|
|
|
|
|
|
Loss for the period |
|
- |
- |
- |
- |
- |
(2,778,953) |
(2,778,953) |
(759,658) |
(3,538,611) |
|
Other comprehensive income |
|
- |
208,333 |
- |
- |
136,696 |
- |
345,029 |
(34,907) |
310,122 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income |
|
- |
208,333 |
- |
- |
136,696 |
(2,778,953) |
(2,433,924) |
(794,565) |
(3,228,489) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issue of new shares |
19 |
392,927 |
1,422,815 |
- |
- |
- |
- |
1,815,742 |
- |
1,815,742 |
|
Dividends paid to non-controlling |
|
- |
- |
- |
- |
- |
- |
- |
(2,603) |
(2,603) |
|
Others |
|
- |
17 |
- |
- |
- |
- |
17 |
- |
17 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at 30 June 2024 |
|
16,593,720 |
41,999,382 |
11,564,287 |
156,687 |
(1,039,544) |
(32,686,722) |
36,587,810 |
(2,739,134) |
33,848,676 |
|
|
|
|
|
|
|
|
|
|
|
|
The notes on pages 38 to 61 form part of this interim financial report.
Condensed Consolidated Statement of
Cash Flows
For the Six Months Ended 30 June 2025 - unaudited
(Expressed in RMB)
|
|
Six months ended 30 June |
|
|
|
2025 |
2024 |
|
|
RMB'000 |
RMB'000 |
|
|
|
|
|
|
|
|
|
Operating activities |
|
|
|
Cash generated from operations |
17,919,320 |
17,747,919 |
|
Income tax paid |
(88,170) |
(91,754) |
|
Interest paid |
(3,003,178) |
(3,403,093) |
|
|
|
|
|
|
|
|
|
Net cash generated from operating activities |
14,827,972 |
14,253,072 |
|
|
|
|
|
|
|
|
|
Investing activities |
|
|
|
Proceeds from disposal of property, plant and equipment, right-of-use assets and assets held for sale |
716,817 |
775,072 |
|
Dividends received |
937,323 |
807,696 |
|
Proceeds from disposal of debt instruments at fair value through |
500,419 |
374,465 |
|
Purchase of debt instruments at amortised cost |
(141,899) |
(1,000,000) |
|
Purchase of property, plant and equipment |
(6,435,935) |
(4,779,369) |
|
Advance payments for aircraft and flight equipment |
(1,783,732) |
(2,702,445) |
|
Placement of term deposits |
(1,135,398) |
(1,172,268) |
|
Investment in a joint venture |
(44,850) |
(148,991) |
|
Purchase of debt instruments and equity instruments at fair value through other comprehensive income |
(240,000) |
(229,639) |
|
Net cash flows arising from other investing activities |
289,216 |
(101,865) |
|
|
|
|
|
|
|
|
|
Net cash used in investing activities |
(7,338,039) |
(8,177,344) |
|
|
|
|
|
|
|
|
|
Financing activities |
|
|
|
Proceeds from new bank loans and other borrowings |
27,689,016 |
18,984,932 |
|
Proceeds from issue of new shares |
- |
1,816,860 |
|
Proceeds from issuance of corporate bonds and short-term commercial papers |
26,500,000 |
3,000,000 |
|
Capital contribution from a non-controlling shareholder of a subsidiary |
715,943 |
- |
|
Repayment of bank loans and other borrowing |
(39,738,040) |
(15,678,403) |
|
Repayment of leases liabilities |
(9,185,178) |
(9,275,056) |
|
Transaction costs attributable to issue of new shares |
- |
(1,118) |
|
Dividends paid to non-controlling shareholders |
- |
(747) |
|
Repayment of corporate bonds and short-term commercial papers |
(9,200,000) |
- |
|
|
|
|
|
|
|
|
|
Net cash used in financing activities |
(3,218,259) |
(1,153,532) |
|
|
|
|
|
|
|
|
|
Net increase in cash and cash equivalents |
4,271,674 |
4,922,196 |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at 1 January |
21,039,472 |
15,016,804 |
|
Effect of foreign exchanges rates changes |
19,955 |
24,866 |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at 30 June |
25,331,101 |
19,963,866 |
|
|
|
|
The notes on pages 38 to 61 form part of this interim financial report.
Notes to the Unaudited
Interim Financial Report
For the Six Months Ended 30 June 2025
(Expressed in RMB)
1. CORPORATE INFORMATION
Air China Limited (the "Company") was established as a joint stock limited company in Beijing, the People's Republic of China (the "PRC"), on 30 September 2004. The registered address of the Company is at 1st Floor - 9th Floor 101, Building 1, 30 Tianzhu Road, Shunyi District, Beijing, the PRC. The Company's H shares are listed on The Stock Exchange of Hong Kong Limited (the "HKSE") and the London Stock Exchange (the "LSE") while the Company's A shares are listed on the Shanghai Stock Exchange. In the opinion of the directors of the Company (the "Directors"), the Company's parent and ultimate holding company is China National Aviation Holding Corporation Limited ("CNAHC"), a PRC state-owned enterprise under the supervision of the State Council.
The principal activities of the Company and its subsidiaries (together referred to as the "Group") are provision of airline and airline-related services, including aircraft engineering services and airport ground handling services.
The interim consolidated financial report is presented in Renminbi ("RMB"), the functional currency of the Company, and all values are rounded to the nearest thousand ('000) unless otherwise indicated.
2. BASIS OF PREPARATION
The interim financial report for the six months ended 30 June 2025 has been prepared in accordance with the applicable disclosure provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, including compliance with International Accounting Standard ("IAS") 34, Interim Financial Reporting, issued by the International Accounting Standards Board. It was authorised for issue on 28 August 2025.
The interim financial report has been prepared in accordance with the same accounting policies adopted in the 2024 annual financial statements. The Group did not have any changes to its accounting policies from those applied in 2024.
This interim financial report contains condensed consolidated financial statements and selected explanatory notes. The notes include an explanation of events and transactions that are significant to an understanding of the changes in the Group's financial position and performance since the 2024 annual financial statements. The condensed consolidated interim financial statements and notes thereon do not include all of the information required for a full set of financial statements prepared in accordance with IFRS Accounting Standards.
The interim financial report is unaudited, but has been reviewed by KPMG in accordance with International Standard of Review Engagements 2410, Review of interim financial information performed by the independent auditor of the entity, issued by the International Auditing and Assurance Standards Board. KPMG's independent review report to the Board of Directors is included in page 30.
As at 30 June 2025, the Group's current liabilities exceeded its current assets by approximately RMB78,459 million. The liquidity of the Group is primarily dependent on its ability to maintain cash inflows from operations and sufficient financing to meet its financial obligations as and when they fall due. Considering the Company's sources of liquidity and the unutilised bank facilities of RMB180,093 million as at 30 June 2025, the Directors believe that the Group has sufficient sources of financing to enable it to operate, as well as to meet its liabilities as and when they become due, and to support its capital expenditures in the foreseeable future of not less than twelve months from the end of the reporting period. Accordingly, this interim financial report has been prepared on a going concern basis.
3. REVENUE
Disaggregation of revenue
|
|
Six months ended 30 June |
|
|
|
2025 |
2024 |
|
|
RMB'000 |
RMB'000 |
|
|
|
|
|
|
|
|
|
Revenue from contracts with customers |
|
|
|
Airline operations |
|
|
|
Passenger |
73,196,376 |
73,137,116 |
|
Cargo and mail |
3,577,468 |
3,328,452 |
|
Others |
921,734 |
859,569 |
|
|
|
|
|
|
|
|
|
|
77,695,578 |
77,325,137 |
|
|
|
|
|
|
|
|
|
Other operations |
|
|
|
Aircraft engineering income |
2,825,795 |
2,023,821 |
|
Others |
61,703 |
57,751 |
|
|
|
|
|
|
|
|
|
|
2,887,498 |
2,081,572 |
|
|
|
|
|
|
|
|
|
Sub-total |
80,583,076 |
79,406,709 |
|
|
|
|
|
|
|
|
|
Rental income (included in revenue of airline operations segment) |
174,358 |
113,623 |
|
|
|
|
|
|
|
|
|
Total revenue |
80,757,434 |
79,520,332 |
|
|
|
|
4. SEGMENT INFORMATION
The Group's businesses are structured and managed, according to the nature of its operations and the services it provides. The Group has the following reportable operating segments:
(a) the "airline operations" segment which mainly comprises the provision of air passenger and air cargo services; and
(b) the "other operations" segment which comprises the provision of aircraft engineering and other airline-related services.
Inter-segment sales and transfers are transacted with reference to the then prevailing market prices.
The Company's chief operating decision maker monitors the results, assets and liabilities of the Group based on the financial results prepared in accordance with the Accounting Standards for Business Enterprises issued by the Ministry of Finance of the PRC ("CASs"). As such, the segment information is presented in accordance with CAS with reconciliation to financial information presented in IFRS Accounting Standards.
4. SEGMENT INFORMATION (continued)
For the six months ended 30 June 2025
|
|
Airline |
Other |
Elimination |
Total |
|
|
RMB'000 |
RMB'000 |
RMB'000 |
RMB'000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
Sales to external customers |
77,869,936 |
2,887,498 |
- |
80,757,434 |
|
Inter-segment sales |
106,983 |
4,426,862 |
(4,533,845) |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment revenue under CASs and |
77,976,919 |
7,314,360 |
(4,533,845) |
80,757,434 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment results before taxation |
|
|
|
|
|
(Loss)/profit before taxation for reportable segments under CASs |
(3,185,233) |
388,330 |
7,862 |
(2,789,041) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of differences between IFRS Accounting Standards and CASs |
|
|
|
1,139 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before taxation for the period under IFRS Accounting Standards |
|
|
|
(2,787,902) |
|
|
|
|
|
|
For the six months ended 30 June 2024
|
|
Airline |
Other |
|
|
|
|
operations |
operations |
Elimination |
Total |
|
|
RMB'000 |
RMB'000 |
RMB'000 |
RMB'000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
Sales to external customers |
77,438,760 |
2,081,572 |
- |
79,520,332 |
|
Inter-segment sales |
106,388 |
4,343,972 |
(4,450,360) |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment revenue under CASs and |
77,545,148 |
6,425,544 |
(4,450,360) |
79,520,332 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment results before taxation |
|
|
|
|
|
(Loss)/profit before taxation for reportable segments under CASs |
(3,715,694) |
502,625 |
(77,722) |
(3,290,791) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of differences between IFRS Accounting Standards and CASs |
|
|
|
4,716 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before taxation for the period under IFRS Accounting Standards |
|
|
|
(3,286,075) |
|
|
|
|
|
|
4. SEGMENT INFORMATION (continued)
As at 30 June 2025/31 December 2024
|
|
Airline |
Other |
|
|
|
|
operations |
operations |
Elimination |
Total |
|
|
RMB'000 |
RMB'000 |
RMB'000 |
RMB'000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment assets |
|
|
|
|
|
Segment assets as at 30 June 2025 |
334,218,916 |
29,253,558 |
(15,914,966) |
347,557,508 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of differences between IFRS Accounting Standards and CASs |
|
|
|
(18,386) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets as at 30 June 2025 under IFRS Accounting Standards |
|
|
|
347,539,122 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment assets as at 31 December 2024 under CASs |
335,387,462 |
35,068,041 |
(24,686,091) |
345,769,412 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of differences between IFRS Accounting Standards and CASs |
|
|
|
(19,239) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets as at 31 December 2024 under IFRS Accounting Standards |
|
|
|
345,750,173 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment liabilities |
|
|
|
|
|
Segment liabilities under CASs and |
|
|
|
|
|
As at 30 June 2025 |
304,360,027 |
20,338,559 |
(15,389,461) |
309,309,125 |
|
|
|
|
|
|
|
|
|
|
|
|
|
As at 31 December 2024 |
301,829,477 |
27,135,795 |
(24,141,069) |
304,824,203 |
|
|
|
|
|
|
4. SEGMENT INFORMATION (continued)
Geographical information
The following tables present the Group's consolidated revenue to external customers by geographical location for the six months ended 30 June 2025 and 2024:
|
|
Six months ended 30 June |
|
|
|
2025 |
2024 |
|
|
RMB'000 |
RMB'000 |
|
|
|
|
|
|
|
|
|
Chinese Mainland |
56,277,430 |
57,960,673 |
|
Hong Kong SAR, Macau SAR and Taiwan, China |
2,539,842 |
2,484,032 |
|
International |
21,940,162 |
19,075,627 |
|
|
|
|
|
|
|
|
|
|
80,757,434 |
79,520,332 |
|
|
|
|
In determining the Group's geographical information, revenue is based on the origin and destination of each flight. Assets, which principally consist of aircraft and ground equipment, supporting the Group's worldwide transportation network, are mainly registered/located in Chinese Mainland. According to the business demand, the Group flexibly allocates aircraft to match the need of the route network. An analysis of the assets of the Group by geographical distribution has therefore not been presented.
There was no individual customer that contributed 10% or more of the Group's revenue for both periods presented.
5. OTHER INCOME AND GAINS
|
|
Six months ended 30 June |
|
|
|
2025 |
2024 |
|
|
RMB'000 |
RMB'000 |
|
|
|
|
|
|
|
|
|
Co-operation routes income and subsidy income |
2,407,102 |
2,232,415 |
|
Gains on disposal of property, plant and equipment and |
22,327 |
775,226 |
|
Loss on disposal of assets held for sale |
- |
(7,907) |
|
Dividend income |
13,131 |
5,935 |
|
Others |
173,285 |
245,181 |
|
|
|
|
|
|
|
|
|
|
2,615,845 |
3,250,850 |
|
|
|
|
6. LOSS FROM OPERATIONS
The Group's loss from operations is arrived at after charging:
|
|
Six months ended 30 June |
|
|
|
2025 |
2024 |
|
|
RMB'000 |
RMB'000 |
|
|
|
|
|
|
|
|
|
Depreciation of property, plant and equipment |
7,072,151 |
6,505,225 |
|
Depreciation of right-of-use assets |
7,748,718 |
7,503,289 |
|
Depreciation of investment properties |
16,767 |
16,767 |
|
Amortisation of intangible assets |
2 |
4 |
|
|
|
|
7. FINANCE COSTS
|
|
Six months ended 30 June |
|
|
|
2025 |
2024 |
|
|
RMB'000 |
RMB'000 |
|
|
|
|
|
|
|
|
|
Interest on interest-bearing borrowings |
1,951,327 |
2,215,565 |
|
Interest on lease liabilities |
1,114,236 |
1,192,838 |
|
Imputed interest expenses on defined benefit obligations |
5,147 |
2,628 |
|
|
|
|
|
|
|
|
|
|
3,070,710 |
3,411,031 |
|
Less: Interest capitalised |
(179,756) |
(145,558) |
|
|
|
|
|
|
|
|
|
|
2,890,954 |
3,265,473 |
|
|
|
|
The interest capitalisation rates during the period ranged from 1.95% to 2.80% (six months ended 30 June 2024: 2.40% to 4.45%) per annum relating to the costs of related borrowings during the period.
8. INCOME TAX (CREDIT)/EXPENSE
|
|
Six months ended 30 June |
|
|
|
2025 |
2024 |
|
|
RMB'000 |
RMB'000 |
|
|
|
|
|
|
|
|
|
Current income tax: |
|
|
|
- Chinese Mainland |
120,343 |
201,017 |
|
- Other tax jurisdictions |
895 |
887 |
|
Under provision in respect of prior years |
1,525 |
431 |
|
Deferred tax |
(200,560) |
50,201 |
|
|
|
|
|
|
|
|
|
|
(77,797) |
252,536 |
|
|
|
|
Under the Law of the PRC on Enterprise Income Tax (the "EIT Law") and Implementation Regulation of the EIT Law, except for certain branches and subsidiaries of the Group which are taxed at a preferential rate of 15%, all group companies located in Chinese Mainland are subject to an income tax rate of 25% (six months ended 30 June 2024: 25%). Subsidiaries in Hong Kong SAR, China are taxed at profits tax rate of 16.5%, and subsidiaries in Macau SAR, China are taxed at profits tax rate of 12%, for both periods.
9. DIVIDENDS
In accordance with the Company's articles of association, the profit after tax of the Company for the purpose of dividend distribution is based on the lesser of (i) the profit determined in accordance with CASs; and (ii) the profit determined in accordance with IFRSs.
(a) Dividends payable to equity shareholders attributable to the interim period
No interim dividend has been declared by the Directors for the six months ended 30 June 2025 (six months ended 30 June 2024: Nil).
(b) Dividends payable to equity shareholders attributable to the previous financial year, approved during the current interim period
No dividend has been declared by the Directors for the financial year of 2024 during the six months ended 30 June 2025 (six months ended 30 June 2024: Nil).
10. LOSS PER SHARE
The calculation of the basic loss per share is based on the loss attributable to ordinary equity shareholders of the Company of RMB1,805 million (six months ended 30 June 2024: RMB2,779 million) and the weighted average number of 16,658,566,736 (six months ended 30 June 2024: 15,723,985,056) ordinary shares in issue during the period, as adjusted to reflect the effect of reciprocal shareholding with Cathay Pacific Airways Limited ("Cathay Pacific") (Note 12).
The Group had no potential ordinary shares in issue during both periods. The basic loss per share is the same as the diluted loss per share.
11. PROPERTY, PLANT AND EQUIPMENT AND RIGHT-OF-USE ASSETS
(a) Property, plant and equipment
During the six months ended 30 June 2025, additions to the cost of property, plant and equipment were RMB7,581 million (six months ended 30 June 2024: RMB6,879 million). Property, plant and equipment with carrying amount of RMB738 million were disposed of during the six months ended 30 June 2025 (six months ended 30 June 2024: RMB306 million).
During the six months ended 30 June 2025, the Group recognised impairment loss amounting to approximately RMB85 million (six months ended 30 June 2024: Nil) for certain aircraft held for sale. The recoverable amount is estimated based on fair value less cost of disposal. The fair value is determined based on depreciated replacement cost method. The fair value measurement falls into level 3 of the fair value hierarchy.
As at 30 June 2025, the Group was in the process of applying for the title certificates of certain buildings with an aggregate net book value of approximately RMB6,126 million (31 December 2024: RMB6,906 million). The Directors are of the opinion that the Group is entitled to lawfully and validly occupy and use the above-mentioned buildings.
(b) Right-of-use assets
During the six months ended 30 June 2025, additions to the right-of-use assets were RMB5,531 million (six months ended 30 June 2024: RMB4,970 million).
As at 30 June 2025, the Group had future undiscounted lease payments under non-cancellable leases of RMB2 million (31 December 2024: RMB188 million), which was not recognised as lease liabilities since leases are yet to be commenced.
12. INTERESTS IN ASSOCIATES
|
|
At 30 June |
At 31 December |
|
|
RMB'000 |
RMB'000 |
|
|
|
|
|
|
|
|
|
Listed shares in Hong Kong SAR, China |
13,950,934 |
14,310,718 |
|
Unlisted investments |
335,055 |
322,205 |
|
|
|
|
|
|
|
|
|
|
14,285,989 |
14,632,923 |
|
|
|
|
|
|
|
|
|
Market value of listed shares |
18,837,718 |
17,054,995 |
|
|
|
|
Summarised financial information in respect of Cathay Pacific Airways Limited ("Cathay Pacific"), the only individually material associate of the Group, and a reconciliation to the carrying amount in the condensed consolidated financial statements, are set out below. The summarised financial information below represents amounts shown in the associate's consolidated financial statements.
12. INTERESTS IN ASSOCIATES (continued)
Cathay Pacific
|
|
At 30 June |
At 31 December |
|
|
RMB'000 |
RMB'000 |
|
|
|
|
|
|
|
|
|
Gross amounts of the associate's |
|
|
|
Current assets |
16,798,119 |
17,822,566 |
|
Non-current assets |
138,508,790 |
140,756,228 |
|
Current liabilities |
(48,196,558) |
(46,523,324) |
|
Non-current liabilities |
(59,998,102) |
(63,431,888) |
|
Equity attributable to equity shareholders of the associate |
46,951,745 |
48,130,929 |
|
|
|
|
|
|
Six months ended 30 June |
|
|
|
2025 |
2024 |
|
|
RMB'000 |
RMB'000 |
|
|
|
|
|
|
|
|
|
Revenue |
49,909,699 |
45,112,358 |
|
Profit for the period |
3,355,251 |
3,285,843 |
|
Other comprehensive income |
(1,233,291) |
706,643 |
|
Total comprehensive income |
2,121,960 |
3,992,486 |
|
|
|
|
|
|
At 30 June |
At 31 December |
|
|
RMB'000 |
RMB'000 |
|
|
|
|
|
|
|
|
|
Reconciled to the Group's interests in the associate |
|
|
|
Gross amounts of net assets of the associate attributable |
46,951,745 |
48,130,929 |
|
Group's effective interest |
29.98% |
29.98% |
|
Group's share of net assets of the associate |
14,076,133 |
14,429,653 |
|
Elimination of reciprocal shareholding |
(2,713,285) |
(2,747,008) |
|
Goodwill |
2,588,086 |
2,628,073 |
|
|
|
|
|
|
|
|
|
Carrying amount in the condensed consolidated financial statements |
13,950,934 |
14,310,718 |
|
|
|
|
12. INTERESTS IN ASSOCIATES (continued)
Aggregate information of associates that are not individually material:
|
|
At 30 June |
At 31 December |
|
|
RMB'000 |
RMB'000 |
|
|
|
|
|
|
|
|
|
Aggregate carrying amounts of individually immaterial |
335,055 |
322,205 |
|
|
|
|
|
|
Six months ended 30 June |
|
|
|
2025 |
2024 |
|
|
RMB'000 |
RMB'000 |
|
|
|
|
|
|
|
|
|
Aggregate amounts of the Group's share of those associates' |
|
|
|
- Profit for the period |
46,325 |
17,448 |
|
- Other comprehensive income for the period |
(1,184) |
440 |
|
|
|
|
|
|
|
|
|
Total comprehensive income for the period |
45,141 |
17,888 |
|
|
|
|
13. ACCOUNTS RECEIVABLE
The ageing analysis of the accounts receivable as at the end of the reporting period, based on the transaction date, net of allowance for expected credit losses, was as follows:
|
|
At 30 June |
At 31 December |
|
|
RMB'000 |
RMB'000 |
|
|
|
|
|
|
|
|
|
Within 30 days |
3,640,790 |
2,963,962 |
|
31 to 60 days |
499,885 |
147,934 |
|
61 to 90 days |
76,653 |
139,120 |
|
Over 90 days |
565,841 |
419,236 |
|
|
|
|
|
|
|
|
|
|
4,783,169 |
3,670,252 |
|
|
|
|
14. PREPAYMENTS, DEPOSITS AND OTHER RECEIVABLES
An analysis of prepayments, deposits and other receivables as at the end of the reporting period, net of allowance for expected credit losses, was as follows:
|
|
At 30 June |
At 31 December |
|
|
RMB'000 |
RMB'000 |
|
|
|
|
|
|
|
|
|
Manufacturers' credits |
1,049,963 |
1,311,700 |
|
Prepayments of jet fuel |
161,119 |
116,961 |
|
Other prepayments |
362,982 |
345,284 |
|
|
|
|
|
|
|
|
|
|
1,574,064 |
1,773,945 |
|
Deposits and other receivables |
3,759,136 |
3,449,312 |
|
|
|
|
|
|
|
|
|
|
5,333,200 |
5,223,257 |
|
|
|
|
15. ACCOUNTS PAYABLE
The ageing analysis of the accounts payable, based on the transaction date, as at the end of the reporting period was as follows:
|
|
At 30 June |
At 31 December |
|
|
RMB'000 |
RMB'000 |
|
|
|
|
|
|
|
|
|
Within 30 days |
8,148,551 |
8,354,764 |
|
31 to 60 days |
2,286,119 |
2,009,755 |
|
61 to 90 days |
4,623,235 |
4,806,725 |
|
Over 90 days |
4,595,477 |
3,698,540 |
|
|
|
|
|
|
|
|
|
|
19,653,382 |
18,869,784 |
|
|
|
|
16. OTHER PAYABLES AND ACCRUALS
An analysis of other payables and accruals as at the end of the reporting period was as follows:
|
|
At 30 June |
At 31 December |
|
|
RMB'000 |
RMB'000 |
|
|
|
|
|
|
|
|
|
Accrued salaries, wages and benefits |
3,567,517 |
3,507,037 |
|
Payables for construction in progress |
1,039,110 |
1,365,753 |
|
Other tax payable |
407,432 |
524,754 |
|
Deposits received from sales agents |
750,753 |
593,809 |
|
Current portion of long-term payables |
2,252 |
2,377 |
|
Deposits received by China National Aviation Finance Co., Ltd. ("CNAF"), a subsidiary of the Company, from related parties |
6,694,941 |
4,891,502 |
|
Others |
2,594,986 |
2,552,270 |
|
|
|
|
|
|
|
|
|
|
15,056,991 |
13,437,502 |
|
|
|
|
17. LEASE LIABILITIES
The Group has obligations under lease agreements expiring from the second half of 2025 to 2035 (31 December 2024: 2025 to 2033). An analysis of the lease payments as at the end of the reporting period, together with the present values of the lease payments which are principally denominated in foreign currencies, is as follows:
|
|
At 30 June 2025 |
At 31 December 2024 |
||
|
|
|
Present values |
|
Present values |
|
|
Lease |
of |
Lease |
of |
|
|
payments |
lease payments |
payments |
lease payments |
|
|
RMB'000 |
RMB'000 |
RMB'000 |
RMB'000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts repayable |
|
|
|
|
|
- Within 1 year |
18,454,576 |
16,666,649 |
19,536,185 |
17,464,654 |
|
- After 1 year but within 2 years |
14,922,323 |
13,635,448 |
16,251,571 |
14,744,586 |
|
- After 2 years but within 5 years |
27,925,821 |
26,012,476 |
31,277,456 |
28,948,310 |
|
- After 5 years |
14,683,034 |
14,111,951 |
16,181,484 |
15,441,291 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
75,985,754 |
70,426,524 |
83,246,696 |
76,598,841 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Amounts representing future |
(5,559,230) |
|
(6,647,855) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Present values of lease payments |
70,426,524 |
|
76,598,841 |
|
|
Less: Portion classified as current liabilities |
(16,666,649) |
|
(17,464,654) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current portion |
53,759,875 |
|
59,134,187 |
|
|
|
|
|
|
|
18. INTEREST-BEARING BORROWINGS
|
|
At 30 June |
At 31 December |
|
|
RMB'000 |
RMB'000 |
|
|
|
|
|
|
|
|
|
Bank loans and other borrowings: |
|
|
|
- Secured |
4,326,546 |
3,583,562 |
|
- Unsecured |
125,695,735 |
137,370,418 |
|
|
|
|
|
|
|
|
|
|
130,022,281 |
140,953,980 |
|
|
|
|
|
|
|
|
|
Corporate bonds and short-term commercial papers: |
|
|
|
- Unsecured |
35,729,751 |
18,427,685 |
|
|
|
|
|
|
|
|
|
|
165,752,032 |
159,381,665 |
|
|
|
|
|
|
At 30 June |
At 31 December |
|
|
RMB'000 |
RMB'000 |
|
|
|
|
|
|
|
|
|
Bank loans and other borrowings repayable: |
|
|
|
- Within 1 year |
47,299,683 |
62,117,020 |
|
- After 1 year but within 2 years |
31,821,960 |
30,458,552 |
|
- After 2 years but within 5 years |
50,220,569 |
43,561,628 |
|
- After 5 years |
680,069 |
4,816,780 |
|
|
|
|
|
|
|
|
|
|
130,022,281 |
140,953,980 |
|
|
|
|
|
|
|
|
|
Corporate bonds and short-term commercial papers repayable: |
|
|
|
- Within 1 year |
12,729,751 |
12,427,685 |
|
- After 1 year but within 2 years |
1,000,000 |
- |
|
- After 2 years but within 5 year |
20,000,000 |
6,000,000 |
|
- After 5 years |
2,000,000 |
- |
|
|
|
|
|
|
|
|
|
|
35,729,751 |
18,427,685 |
|
|
|
|
|
|
|
|
|
Total interest-bearing borrowings |
165,752,032 |
159,381,665 |
|
Less: portion classified as current liabilities |
(60,029,434) |
(74,544,705) |
|
|
|
|
|
|
|
|
|
Non-current portion |
105,722,598 |
84,836,960 |
|
|
|
|
18. INTEREST-BEARING BORROWINGS (continued)
As at 30 June 2025, the interest rates of the Group's bank loans and other borrowings ranged from 1.00% to 4.38% (31 December 2024: 1.60% to 4.38%) per annum.
As at 30 June 2025, the interest rates of the Group's corporate bonds and short-term commercial papers ranged from 1.76% to 2.54% (31 December 2024: 2.03% to 3.46%) per annum.
As at 30 June 2025, the Group's bank loans of approximately RMB4,327 million (31 December 2024: RMB3,584 million) were secured by:
|
|
At 30 June |
At 31 December |
|
|
RMB'000 |
RMB'000 |
|
|
|
|
|
|
|
|
|
Aircraft and flight equipment, buildings and other equipment |
4,669,069 |
3,825,292 |
|
Land use rights |
23,039 |
23,433 |
|
|
|
|
|
|
|
|
|
|
4,692,108 |
3,848,725 |
|
|
|
|
19. ISSUED CAPITAL
The numbers of shares of the Company and their nominal values as at 30 June 2025 and 31 December 2024 are as follows:
|
|
30 June 2025 |
31 December 2024 |
||
|
|
Number |
Nominal |
Number |
Nominal |
|
|
of shares |
value |
of shares |
value |
|
|
|
RMB'000 |
|
RMB'000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Registered, issued and fully paid: |
|
|
|
|
|
- H shares of RMB1.00 each: |
|
|
|
|
|
Tradable |
4,562,683,364 |
4,562,683 |
4,562,683,364 |
4,562,683 |
|
Tradable-restricted (Note 1) |
392,927,308 |
392,927 |
392,927,308 |
392,927 |
|
- A shares of RMB1.00 each: |
|
|
|
|
|
Tradable |
11,638,109,474 |
11,638,109 |
11,638,109,474 |
11,638,109 |
|
Tradable-restricted (Note 2) |
854,700,854 |
854,701 |
854,700,854 |
854,701 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
17,448,421,000 |
17,448,421 |
17,448,421,000 |
17,448,421 |
|
|
|
|
|
|
All shares rank equally with regard to the company's residual assets.
Note 1: On 7 February 2024, the Company issued 392,927,308 new H shares to China National Aviation Corporation (Group) Limited ("CNACG", a wholly-owned subsidiary of CNAHC) at the price of HKD5.09 per share with par value of RMB1. Total proceeds of the issuance were HKD2,000 million and the net proceeds were RMB1,816 million, after deducting issue cost of RMB1 million (excluding value-added tax), of which RMB393 million were recognised as issued capital and RMB1,423 million were recognised as capital reserve. Upon completion of the issuance, the new H shares are subject to a lock-up period of 36 months.
Note 2: On 17 July 2024, 614,525,150 A share subscribed by CNAHC were released from restriction.
On 19 November 2024, the Company issued 854,700,854 new A shares to CNAHC at the price of RMB7.02 per share with par value of RMB1. Total proceeds of the issuance were RMB6,000 million and the net proceeds were 5,996 million, after deducting issuance cost of RMB4 million (excluding value-added tax), of which RMB855 million were recognised as issued capital and RMB5,141 million were recognised as capital reserve. Upon completion of the issuance, the new A shares are subject to a lock-up period of 36 months.
20. OTHER EVENTS
Pursuant to the restructuring of CNAHC in preparation for the listing of the Company's H shares on the HKSE and the LSE, the Company entered to a restructuring agreement (the "Restructuring Agreement") with CNAHC and CNACG on 20 November 2004. According to the Restructuring Agreement, except for liabilities constituting or arising out of or relating to business undertaken by the Company after the restructuring, no liabilities would be assumed by the Company and the Company would not be liable, whether severally, or jointly and severally, for debts and obligations incurred prior to the restructuring by CNAHC and CNACG. The Company has also undertaken to indemnify CNAHC and CNACG against any damage suffered or incurred by CNAHC and CNACG as a result of any breach by the Company of any provision of the Restructuring Agreement.
21. FINANCIAL INSTRUMENTS
(a) Financial assets measured at fair value
(i) Fair value hierarchy
The following table presents the fair value of the Group's financial instruments measured at the end of the reporting period on a recurring basis, categorised into the three-level fair value hierarchy as defined in IFRS 13 Fair value measurement. The level into which a fair value measurement is classified is determined with reference to the observability and significance of the inputs used in the valuation technique as follows:
• Level 1 fair value measurements are based on quoted prices (unadjusted) in active market for identical assets or liabilities;
• Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and
• Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs).
|
|
Fair value at |
Fair value measurements |
||
|
|
30 June |
as at 30 June 2025 categorised into |
||
|
|
2025 |
Level 1 |
Level 2 |
Level 3 |
|
|
RMB'000 |
RMB'000 |
RMB'000 |
RMB'000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity instruments at fair value through other comprehensive income ("FVTOCI") |
2,073,694 |
- |
- |
2,073,694 |
|
Debt instruments at FVTOCI (including debt instruments at FVTOCI included in other current assets) |
1,482,024 |
- |
1,482,024 |
- |
|
Financial assets at fair value through profit or loss |
153,221 |
153,221 |
- |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total financial assets at fair value |
3,708,939 |
153,221 |
1,482,024 |
2,073,694 |
|
|
|
|
|
|
21. FINANCIAL INSTRUMENTS (continued)
(a) Financial assets measured at fair value (continued)
(i) Fair value hierarchy (continued)
|
|
Fair value at |
Fair value measurements |
||
|
|
31 December |
as at 31 December 2024 categorised into |
||
|
|
2024 |
Level 1 |
Level 2 |
Level 3 |
|
|
RMB'000 |
RMB'000 |
RMB'000 |
RMB'000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity instruments at FVTOCI |
1,791,273 |
- |
- |
1,791,273 |
|
Debt instruments at FVTOCI (including debt instruments at FVTOCI included in other current assets) |
1,476,713 |
- |
1,476,713 |
- |
|
Financial assets at fair value through profit or loss |
37,559 |
37,559 |
- |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total financial assets at fair value |
3,305,545 |
37,559 |
1,476,713 |
1,791,273 |
|
|
|
|
|
|
During the six months ended 30 June 2025, there were no transfers between Level 1 and Level 2, or transfers into or out of Level 3. The Group's policy is to recognise transfers between levels of fair value hierarchy as at the end of the reporting period in which they occur.
(ii) Valuation techniques and inputs used in Level 2 fair value measurements
The financial instruments classified within Level 2 of the fair value hierarchy are debt investments, the fair value is of which was estimated based on the publicly available indicative price.
(iii) Valuation techniques and inputs used in Level 3 fair value measurements
As at 30 June 2025, the fair value of the equity interest in unlisted securities of a listed company amounting to approximately RMB254 million (as at 31 December 2024: RMB254 million) was estimated by reference to the quoted prices in an active market with an adjustment of discount for lack of marketability.
As at 30 June 2025, the fair value of private equity instruments at FVTOCI amounting to approximately RMB1,819 million (as at 31 December 2024: RMB1,537 million) have been estimated using a market-based valuation technique, which is derived by reference to observable valuation measures for comparable companies, and with the adjustment of discount for lack of marketability.
The changes in Level 3 financial assets are analysed below:
|
|
2025 |
2024 |
|
|
RMB'000 |
RMB'000 |
|
|
|
|
|
|
|
|
|
As at 1 January |
1,791,273 |
1,547,986 |
|
Purchase |
240,000 |
360,000 |
|
Change in fair value recognised in other comprehensive income |
42,421 |
(86,078) |
|
|
|
|
|
|
|
|
|
As at 30 June |
2,073,694 |
1,821,908 |
|
|
|
|
21. FINANCIAL INSTRUMENTS (continued)
(b) Fair values of financial assets and liabilities carried at other than fair value
Except as detailed in the following table, the Directors consider that the carrying amounts of financial assets and liabilities measured at amortised cost in these condensed consolidated financial statements approximate their fair values.
|
|
Carrying amounts |
Fair values |
||
|
|
As at |
As at |
As at |
As at |
|
|
30 June |
31 December |
30 June |
31 December |
|
|
2025 |
2024 |
2025 |
2024 |
|
|
RMB'000 |
RMB'000 |
RMB'000 |
RMB'000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities |
|
|
|
|
|
- Corporate bonds |
|
|
|
|
|
(fixed rate) |
26,188,123 |
15,416,838 |
26,068,606 |
15,283,291 |
|
|
|
|
|
|
The fair value measurement of corporate bonds falls into level 2 of the fair value hierarchy.
22. COMMITMENTS
(a) Capital commitments
The Group had the following amounts of contractual commitments for the acquisition and construction of property, plant and equipment as at the end of the reporting period:
|
|
At 30 June |
At 31 December |
|
|
RMB'000 |
RMB'000 |
|
|
|
|
|
|
|
|
|
Contracted, but not provided in the consolidated financial statements |
93,200,377 |
95,175,219 |
|
|
|
|
22. COMMITMENTS (continued)
(b) Investment commitments
The Group had the following amounts of investment commitments as at the end of the reporting period:
|
|
At 30 June |
At 31 December |
|
|
RMB'000 |
RMB'000 |
|
|
|
|
|
|
|
|
|
Contracted, but not provided for: |
|
|
|
- investment commitment to joint ventures |
266,658 |
312,695 |
|
|
|
|
In 2012, the Company entered into an agreement with a joint venture as its 50% shareholder, with a total investment commitment of USD5 million. As at 30 June 2025, the Company has invested United State Dollar ("USD") 1.5 million (31 December 2024: USD1.5 million) and committed to invest USD3.5 million (31 December 2024: USD3.5 million) in the future.
In 2022, the Company entered into an agreement with a joint venture as its 50% shareholder, with a total investment commitment of USD95 million. As at 30 June 2025, the Company has invested USD61.25 million (31 December 2024: USD55 million) and committed to invest USD33.75 million (31 December 2024: USD40 million) in the future.
23. RELATED PARTY TRANSACTIONS
(a) During the period, the Group had the following significant transactions with (i) CNAHC, its subsidiaries (other than the Group), joint ventures and associates (collectively, the "CNAHC Group"); (ii) its joint ventures and its associates:
(i) Transactions with related parties
|
|
Six months ended 30 June |
|
|
|
2025 |
2024 |
|
|
RMB'000 |
RMB'000 |
|
|
|
|
|
|
|
|
|
Service provided to the CNAHC Group: |
|
|
|
|
|
|
|
Transportation service fee on the passenger aircraft cargo business |
3,326,422 |
3,009,102 |
|
Aircraft maintenance income |
240,939 |
150,046 |
|
Land and buildings rental income |
113,269 |
81,322 |
|
Ground services income |
100,680 |
71,872 |
|
Pilot transfer income |
- |
49,220 |
|
Government charter flights services |
17,831 |
36,906 |
|
Air catering, onboard supplies and aircraft parts income |
28,776 |
30,060 |
|
Income from advertising media business |
7,259 |
6,786 |
|
Sales commission income |
4,552 |
5,972 |
|
Trademark licensing income |
4,656 |
4,660 |
|
Aviation communication income |
10,730 |
1,185 |
|
Others |
70,082 |
55,025 |
|
|
|
|
|
|
|
|
|
|
3,925,196 |
3,502,156 |
|
|
|
|
23. RELATED PARTY TRANSACTIONS (continued)
(a) During the period, the Group had the following significant transactions with (i) CNAHC, its subsidiaries (other than the Group), joint ventures and associates (collectively, the "CNAHC Group"); (ii) its joint ventures and its associates: (continued)
(i) Transactions with related parties (continued)
|
|
Six months ended 30 June |
|
|
|
2025 |
2024 |
|
|
RMB'000 |
RMB'000 |
|
|
|
|
|
|
|
|
|
Service provided by the CNAHC Group: |
|
|
|
|
|
|
|
Airport ground services, take-off, landing and |
598,007 |
757,051 |
|
Air catering and onboard supplies charges |
828,068 |
739,499 |
|
Aviation communication expenses |
399,950 |
407,196 |
|
Other procurement and maintenance |
243,313 |
291,220 |
|
Interest expenses |
126,325 |
196,418 |
|
Management fees |
182,278 |
173,226 |
|
Media advertisement expenses |
66,088 |
64,056 |
|
Repair and maintenance costs |
34,673 |
25,093 |
|
Expense relating to short-term leases and |
18,279 |
15,644 |
|
Sales commission expenses |
- |
193 |
|
Others |
24,789 |
14,524 |
|
|
|
|
|
|
|
|
|
|
2,521,770 |
2,684,120 |
|
|
|
|
|
|
|
|
|
Loans to the CNAHC Group by CNAF: |
|
|
|
|
|
|
|
(Repayments)/advances of loans |
(80,084) |
105,000 |
|
Interest income |
3,374 |
4,413 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits from the CNAHC Group received by CNAF: |
|
|
|
|
|
|
|
Increase in deposits received |
1,789,284 |
730,815 |
|
Interest expenses |
39,546 |
30,327 |
|
|
|
|
|
|
|
|
|
As a lessee with CNAHC Group: |
|
|
|
|
|
|
|
Additions to right-of-use assets and lease liabilities on new leases |
1,215,895 |
1,665,731 |
|
Lease payments paid |
1,324,048 |
1,331,248 |
|
Interest on lease liabilities |
201,424 |
292,543 |
|
|
|
|
23. RELATED PARTY TRANSACTIONS (continued)
(a) During the period, the Group had the following significant transactions with (i) CNAHC, its subsidiaries (other than the Group), joint ventures and associates (collectively, the "CNAHC Group"); (ii) its joint ventures and its associates: (continued)
(i) Transactions with related parties (continued)
|
|
Six months ended 30 June |
|
|
|
2025 |
2024 |
|
|
RMB'000 |
RMB'000 |
|
|
|
|
|
|
|
|
|
Asset transfers with CNAHC Group |
|
|
|
|
|
|
|
Sales of assets |
89,801 |
66,481 |
|
|
|
|
|
|
|
|
|
Service provided to joint ventures and associates: |
|
|
|
|
|
|
|
Aircraft maintenance income |
116,780 |
109,020 |
|
Ground services income |
18,568 |
29,286 |
|
Air catering, onboard supplies and aircraft parts income |
204 |
4,182 |
|
Frequent-flyer programme income |
2,019 |
1,562 |
|
Land and buildings rental income |
832 |
797 |
|
Sales commission income |
220 |
157 |
|
Others |
223 |
702 |
|
|
|
|
|
|
|
|
|
|
138,846 |
145,706 |
|
|
|
|
|
|
|
|
|
Service provided by joint ventures and associates: |
|
|
|
|
|
|
|
Repair and maintenance costs |
2,588,414 |
1,507,998 |
|
Airport ground services, take-off, |
373,540 |
215,333 |
|
Other procurement and maintenance |
15,323 |
17,319 |
|
Aviation communication expenses |
2,210 |
2,153 |
|
Frequent-flyer programme expenses |
2,504 |
1,958 |
|
Management fees |
652 |
- |
|
Sales commission expenses |
204 |
216 |
|
Air catering and onboard supplies charges |
23,734 |
8 |
|
Expenses relating to short-term leases |
26,046 |
5 |
|
|
|
|
|
|
|
|
|
|
3,032,627 |
1,744,990 |
|
|
|
|
23. RELATED PARTY TRANSACTIONS (continued)
(a) During the period, the Group had the following significant transactions with (i) CNAHC, its subsidiaries (other than the Group), joint ventures and associates (collectively, the "CNAHC Group"); (ii) its joint ventures and its associates: (continued)
(i) Transactions with related parties (continued)
|
|
Six months ended 30 June |
|
|
|
2025 |
2024 |
|
|
RMB'000 |
RMB'000 |
|
|
|
|
|
|
|
|
|
Deposits from joint ventures and associates |
|
|
|
|
|
|
|
Increase/(decrease) in deposits received |
11,155 |
(3,229) |
|
Interest expenses |
305 |
327 |
|
|
|
|
The Directors are of the opinion that the above transactions were conducted in the ordinary course of business of the Group.
(ii) Balances with related parties
|
|
At 30 June |
At 31 December |
|
|
RMB'000 |
RMB'000 |
|
|
|
|
|
|
|
|
|
Outstanding balances with related parties* |
|
|
|
|
|
|
|
Amount due from the ultimate holding company |
170,572 |
152,422 |
|
Amounts due from associates |
44,991 |
48,660 |
|
Amounts due from joint ventures |
8,959 |
8,717 |
|
Amounts due from other related companies |
1,460,926 |
1,295,098 |
|
|
|
|
|
|
|
|
|
Amount due to the ultimate holding company |
10,205 |
6,515 |
|
Amounts due to associates |
68,137 |
64,354 |
|
Amounts due to joint ventures |
487,039 |
985,757 |
|
Amounts due to other related companies |
15,358,707 |
16,040,882 |
|
|
|
|
* Outstanding balances with related parties exclude borrowing balances with related parties and outstanding balances between CNAF and related parties.
23. RELATED PARTY TRANSACTIONS (continued)
(a) During the period, the Group had the following significant transactions with (i) CNAHC, its subsidiaries (other than the Group), joint ventures and associates (collectively, the "CNAHC Group"); (ii) its joint ventures and its associates: (continued)
(ii) Balances with related parties (continued)
Except for lease liabilities, the above outstanding balances with related parties are unsecured, interest-free and repayable within one year or have no fixed terms of repayment.
|
|
At 30 June |
At 31 December |
|
|
2025 |
2024 |
|
|
RMB'000 |
RMB'000 |
|
|
|
|
|
|
|
|
|
Outstanding borrowing balances with related parties |
|
|
|
|
|
|
|
Interest-bearing borrowings |
|
|
|
- Due to the ultimate holding company |
5,885,000 |
10,792,957 |
|
- Due to other related companies |
300,000 |
- |
|
|
|
|
|
|
|
|
|
Outstanding balances between CNAF and |
|
|
|
|
|
|
|
(1) Outstanding balances between CNAF and |
|
|
|
CNAHC Group |
|
|
|
Loans granted |
208,000 |
288,000 |
|
Deposits received |
6,649,507 |
4,879,173 |
|
Interest payable to related parties |
30,764 |
11,815 |
|
Interest receivable from related parties |
139 |
223 |
|
|
|
|
|
|
|
|
|
(2) Outstanding balances between CNAF and joint |
|
|
|
Deposits received |
14,644 |
3,487 |
|
Interest payable to related parties |
26 |
27 |
|
|
|
|
The outstanding balances between CNAF and related parties represent loans to related parties or deposits received by CNAF from related parties. The applicable interest rates are determined in accordance with the prevailing borrowing rates/deposit saving rates published by the People's Bank of China.
23. RELATED PARTY TRANSACTIONS (continued)
(b) An analysis of the compensation of key management personnel of the Group is as follows:
|
|
Six months ended 30 June |
|
|
|
2025 |
2024 |
|
|
RMB'000 |
RMB'000 |
|
|
|
|
|
|
|
|
|
Short-term employee benefits |
5,382 |
4,292 |
|
Retirement scheme contributions |
886 |
807 |
|
|
|
|
|
|
|
|
|
Total emoluments for key management personnel |
6,268 |
5,099 |
|
|
|
|
The breakdown of emoluments for key management personal are as follows:
|
|
Six months ended 30 June |
|
|
|
2025 |
2024 |
|
|
RMB'000 |
RMB'000 |
|
|
|
|
|
|
|
|
|
Directors and supervisors |
2,482 |
1,840 |
|
Senior management |
3,786 |
3,259 |
|
|
|
|
|
|
|
|
|
|
6,268 |
5,099 |
|
|
|
|
(c) Transactions with other government-related entities in the PRC
The Company is ultimately controlled by the PRC government and the Group operates in an economic environment currently predominated by entities controlled, jointly controlled or significantly influenced by the PRC government ("government-related entities").
Apart from above transactions with CNAHC Group, the Group has collectively, but not individually significant transactions with other government-related entities, which include but are not limited to the following:
• Rendering and receiving services
• Sales and purchases of goods, properties and other assets
• Lease of assets
• Depositing and borrowing money
• Use of public utilities
The transactions between the Group and other government-related entities are conducted in the ordinary course of the Group's business within normal business operations. The Group has established its approval process for providing of services, purchase of products, properties and services, purchase of lease service and its financing policy for borrowing. Such approval processes and financing policy do not depend on whether the counterparties are government-related entities or not.
Glossary of Technical Terms
CAPACITY MEASUREMENTS
|
|
|
|
"available tonne kilometres" or "ATK(s)" |
the number of tonnes of capacity available for transportation multiplied by the kilometres flown |
|
|
|
|
"available seat kilometres" or "ASK(s)" |
the number of seats available for sale multiplied by the kilometres flown |
|
|
|
|
"available freight tonne kilometres" or "AFTK(s)" |
the number of tonnes of capacity available for the carriage of cargo and mail multiplied by the kilometres flown |
|
|
|
TRAFFIC MEASUREMENTS
|
|
|
|
"passenger traffic" |
measured in RPK, unless otherwise specified |
|
|
|
|
"revenue passenger kilometres" or "RPK(s)" |
the number of revenue passengers carried multiplied by the kilometres flown |
|
|
|
|
"cargo and mail traffic" |
measured in RFTK, unless otherwise specified |
|
|
|
|
"revenue freight tonne kilometres" or "RFTK(s)" |
the revenue cargo and mail load in tonnes multiplied by the kilometres flown |
|
|
|
|
"revenue tonne kilometres" or "RTK(s)" |
the revenue load (passenger and cargo) in tonnes multiplied by the kilometres flown |
|
|
|
EFFICIENCY MEASUREMENTS
|
|
|
|
"passenger load factor" |
RPK expressed as a percentage of ASK |
|
|
|
|
"cargo and mail load factor" |
RFTK expressed as a percentage of AFTK |
|
|
|
|
"overall load factor" |
RTK expressed as a percentage of ATK |
|
|
|
|
"Block hours" |
the total time from the removal of wheel chocks before the aircraft begins to move until the placement of wheel chocks after the aircraft has landed and come to a complete stop |
|
|
|
YIELD MEASUREMENTS
|
|
|
|
"passenger yield"/"yield per RPK" |
revenues from passenger transportation divided by RPKs |
|
|
|
|
"cargo yield"/"yield per RFTK" |
revenues from cargo and mail transportation divided by RFTKs |
|
|
|
Definitions
In this interim report, unless the context otherwise requires, the following terms shall have the following meanings:
|
|
|
|
"Air China Cargo" |
Air China Cargo Co., Ltd., a non-wholly owned subsidiary of CNAHC |
|
|
|
|
"Airbus" |
Airbus S.A.S., a company established in Toulouse, France |
|
|
|
|
"Air China Inner Mongolia" |
Air China Inner Mongolia Co., Ltd., a non-wholly owned subsidiary of the Company |
|
|
|
|
"Air Macau" |
Air Macau Company Limited, a non-wholly owned subsidiary of the Company |
|
|
|
|
"Ameco" |
Aircraft Maintenance and Engineering Corporation, a non-wholly owned subsidiary of the Company |
|
|
|
|
"Articles of Association" |
the articles of association of the Company, as amended from time to time |
|
|
|
|
"A Share(s)" |
ordinary share(s) in the share capital of the Company, with a nominal value of RMB1.00 each, which are subscribed for and traded in Renminbi and listed on Shanghai Stock Exchange |
|
|
|
|
"Beijing Airlines" |
Beijing Airlines Company Limited, a non-wholly owned subsidiary of the Company |
|
|
|
|
"Board" |
the board of directors of the Company |
|
|
|
|
"Boeing" |
The Boeing Company |
|
|
|
|
"CASs" |
China Accounting Standards for Business Enterprises |
|
|
|
|
"Cathay Pacific" |
Cathay Pacific Airways Limited, an associate of the Company |
|
|
|
|
"CNACG" |
China National Aviation Corporation (Group) Limited, a wholly-owned subsidiary of CNAHC |
|
|
|
|
"CNAF" |
China National Aviation Finance Co., Ltd, a non-wholly owned subsidiary of the Company |
|
|
|
|
"CNAHC" |
China National Aviation Holding Corporation Limited |
|
|
|
|
"COMAC" |
Commercial Aircraft Corporation of China, Ltd. |
|
|
|
|
"Company", "We" or "Air China" |
Air China Limited, a company incorporated in the PRC, whose H Shares are listed on the Hong Kong Stock Exchange as its primary listing venue and on the Official List of the UK Listing Authority as its secondary listing venue, and whose A Shares are listed on the Shanghai Stock Exchange |
|
|
|
|
"CSRC" |
China Securities Regulatory Commission |
|
|
|
|
"Dalian Airlines" |
Dalian Airlines Company Limited, a non-wholly owned subsidiary of the Company |
|
|
|
|
"Director(s)" |
the director(s) of the Company |
|
|
|
|
"Group" |
the Company and its subsidiaries |
|
|
|
|
"Hong Kong Stock Exchange" |
The Stock Exchange of Hong Kong Limited |
|
|
|
|
"H Share(s)" |
overseas-listed foreign invested share(s) in the share capital of the Company, with a nominal value of RMB1.00 each, which is/are listed on the Hong Kong Stock Exchange (as primary listing venue) and has/have been admitted into the Official List of the UK Listing Authority (as secondary listing venue) |
|
|
|
|
"IFRS Accounting Standards" or "IFRSs" |
International Financial Reporting Standards Accounting Standards as issued by the International Accounting Standards Board (IASB) |
|
|
|
|
"Kunming Airlines" |
Kunming Airlines Company Limited, a subsidiary of Shenzhen Airlines |
|
|
|
|
"Listing Rules" or "Hong Kong Listing Rules" |
The Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited |
|
|
|
|
"Model Code" |
the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 to the Listing Rules |
|
|
|
|
"Reporting Period" |
the period from 1 January 2025 to 30 June 2025 |
|
|
|
|
"RMB" |
Renminbi, the lawful currency of the PRC |
|
|
|
|
"SFO" |
The Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) |
|
|
|
|
"Shandong Airlines" |
Shandong Airlines Co., Ltd., a non-wholly owned subsidiary of Shandong Aviation Group Corporation |
|
|
|
|
"Shandong Aviation Group Corporation" |
Shandong Aviation Group Company Limited, a non-wholly owned subsidiary of the Company |
|
|
|
|
"Shenzhen Airlines" |
Shenzhen Airlines Company Limited, a non-wholly owned subsidiary of the Company |
|
|
|
|
"Supervisor(s)" |
the supervisor(s) of the Company |
|
|
|
|
"Supervisory Committee" |
the supervisory committee of the Company |
|
|
|
|
"Treasury Share(s)" |
has the meaning ascribed thereto under the Listing Rules |
|
|
|
|
"US dollars" |
United States dollars, the lawful currency of the United States |
|
|
|
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