China Eastern Airlines Corporation Limited | ||
|
|
(Registrant) |
Date April 20, 2007 | By: | /s/ Li Fenghua |
Name: Li Fenghua |
||
Title: Chairman of the Board of Directors |
A.
|
Prepared
in accordance with International Financial Reporting Standards
(“IFRS”)
|
2006
|
2005
|
|||||||||
Note
|
RMB’000
|
|
RMB’000
|
|||||||
Revenues
|
2
|
37,488,875
|
27,454,443
|
|||||||
Other
operating income
|
4
|
424,265
|
245,279
|
|||||||
Operating
expenses
|
||||||||||
Commissions
|
(1,316,620
|
)
|
(969,587
|
)
|
||||||
Aircraft
fuel
|
(13,608,793
|
)
|
(8,888,873
|
)
|
||||||
Take-off
and landing charges
|
(4,989,382
|
)
|
(3,718,846
|
)
|
||||||
Ground
services and other charges
|
(162,104
|
)
|
(115,516
|
)
|
||||||
Civil
aviation infrastructure levies
|
(696,428
|
)
|
(466,191
|
)
|
||||||
Food
and beverages
|
(1,188,016
|
)
|
(976,787
|
)
|
||||||
Wages,
salaries and benefits
|
(3,476,096
|
)
|
(2,359,467
|
)
|
||||||
Aircraft
maintenance
|
(2,647,340
|
)
|
(1,383,989
|
)
|
||||||
Aircraft
depreciation and operating lease rentals
|
(6,973,863
|
)
|
(5,254,716
|
)
|
||||||
Other
depreciation, amortization and operating lease rentals
|
(782,044
|
)
|
(666,287
|
)
|
||||||
Ticket
reservation fee
|
(418,367
|
)
|
(292,412
|
)
|
||||||
Insurance
costs
|
(161,469
|
)
|
(148,862
|
)
|
||||||
Deficits
on revaluation of property, plant and equipment
|
5
|
(1,035,343
|
)
|
-
|
||||||
Office,
administrative and other expenses
|
(3,448,715
|
)
|
(2,443,941
|
)
|
||||||
Total
operating expenses
|
(40,904,580
|
)
|
(27,685,474
|
)
|
||||||
Operating
(loss)/profit
|
(2,991,440
|
)
|
14,248
|
|||||||
Interest
income
|
120,161
|
128,700
|
||||||||
Finance
costs
|
6
|
(877,579
|
)
|
(707,050
|
)
|
|||||
Share
of results of associates
|
103,566
|
(9,030
|
)
|
|||||||
Share
of results of jointly controlled entities
|
29,595
|
(4,300
|
)
|
|||||||
Loss
before income tax
|
(3,615,697
|
)
|
(577,432
|
)
|
||||||
Taxation
|
7
|
162,932
|
138,704
|
|||||||
Loss
for the year
|
(3,452,765
|
)
|
(438,728
|
)
|
||||||
Attributable
to:
|
||||||||||
Equity
holders of the Company
|
(3,313,425
|
)
|
(467,307
|
)
|
||||||
Minority
interest
|
(139,340
|
)
|
28,579
|
|||||||
(3,452,765
|
)
|
(438,728
|
)
|
|||||||
Loss
per share for loss attributable to the equity
|
||||||||||
shareholders
of the Company during the year
|
||||||||||
-
basic and diluted
|
9
|
(RMB0.68
|
)
|
(RMB0.10
|
)
|
2006
|
2005
|
|||||||||
Note
|
RMB’000
|
|
RMB’000
|
|||||||
Non-current
assets
|
||||||||||
Intangible
assets
|
1,337,554
|
751,843
|
||||||||
Property,
plant and equipment
|
40,050,466
|
38,524,868
|
||||||||
Lease
prepayments
|
1,054,362
|
972,771
|
||||||||
Advance
payments on acquisition of aircraft
|
7,668,708
|
9,072,673
|
||||||||
Investments
in associates
|
623,390
|
629,746
|
||||||||
Investments
in jointly controlled entities
|
115,540
|
100,520
|
||||||||
Available-for-sale
financial assets
|
47,554
|
40,802
|
||||||||
Other
long-term assets
|
1,099,265
|
2,705,558
|
||||||||
Deferred
tax assets
|
82,146
|
12,324
|
||||||||
Derivative
assets
|
73,269
|
70,886
|
||||||||
52,152,254
|
52,881,991
|
|||||||||
Current
assets
|
||||||||||
Flight
equipment spare parts
|
1,198,642
|
978,922
|
||||||||
Trade
receivables and notes receivable
|
10
|
2,002,855
|
1,918,409
|
|||||||
Amounts
due from related companies
|
352,719
|
205,712
|
||||||||
Prepayments,
deposits and other receivables
|
2,475,992
|
997,271
|
||||||||
Cash
and cash equivalents
|
1,987,486
|
1,864,001
|
||||||||
Derivative
assets
|
113,532
|
53,036
|
||||||||
Non-current
assets held for sale
|
882,426
|
-
|
||||||||
9,013,652
|
6,017,351
|
|||||||||
Current
liabilities
|
||||||||||
Sales
in advance of carriage
|
891,659
|
823,149
|
||||||||
Trade
payables and notes payable
|
11
|
5,090,210
|
3,113,897
|
|||||||
Amounts
due to related companies
|
348,477
|
576,030
|
||||||||
Other
payables and accrued expenses
|
7,986,351
|
5,995,751
|
||||||||
Current
portion of obligations under finance leases
|
2,803,956
|
2,428,037
|
||||||||
Current
portion of borrowings
|
16,016,327
|
18,554,630
|
||||||||
Income
tax payable
|
80,483
|
47,259
|
||||||||
Current
portion of provision for aircraft overhaul expenses
|
20,900
|
15,589
|
||||||||
Derivative
liabilities
|
124,722
|
34,844
|
||||||||
Liabilities
relating to non-current assets held for sale
|
442,935
|
-
|
||||||||
33,806,020
|
31,589,186
|
|||||||||
Net
current liabilities
|
(24,792,368
|
)
|
(25,571,835
|
)
|
||||||
Total
assets less current liabilities
|
27,359,886
|
27,310,155
|
||||||||
Non-current
liabilities
|
||||||||||
Obligations
under finance leases
|
9,048,642
|
8,159,517
|
||||||||
Borrowings
|
12,091,413
|
9,790,116
|
||||||||
Provision
for aircraft overhaul expenses
|
489,721
|
388,410
|
||||||||
Other
long-term liabilities
|
438,461
|
201,902
|
||||||||
Deferred
tax liabilities
|
68,459
|
178,825
|
||||||||
Post-retirement
benefit obligations
|
1,292,960
|
1,202,877
|
||||||||
Long-term
portion of staff housing allowances
|
439,491
|
444,196
|
||||||||
Derivative
liabilities
|
14,096
|
25,770
|
||||||||
23,883,243
|
20,391,613
|
|||||||||
Net
assets
|
3,476,643
|
6,918,542
|
||||||||
Equity
|
||||||||||
Capital
and reserves attributable to the equity holders of the
Company
|
||||||||||
Share
capital
|
4,866,950
|
4,866,950
|
||||||||
Reserves
|
(2,052,053
|
)
|
1,229,115
|
|||||||
2,814,897
|
6,096,065
|
|||||||||
Minority
interests
|
661,746
|
822,477
|
||||||||
Total
equity
|
3,476,643
|
6,918,542
|
1. |
Basis
of preparation
|
· |
International
Accounting Standard (“IAS”) No. 39 (“IAS 39”) and IFRS 4 (Amendment) -
Financial Guarantee Contracts
|
· |
IAS
19 (Amendment) - Employee Benefits: Actuarial Gains and Losses,
Group
Plans and Disclosures
|
· |
IAS
39 (Amendment) - The Fair Value option
|
· |
International
Financial Reporting Interpretations Committee (“IFRIC”) Interpretation 4 -
Determining whether an Arrangement contains a
Lease
|
· |
IFRS
7 - Financial Instruments: Disclosures (effective for annual periods
beginning on or after 1 March 2006)
|
· |
IFRS
8 - Operating segments (effective for annual periods beginning
on or after
1 January 2009)
|
· |
IAS
1 (Amendment) - Presentation of Financial Statements: Capital disclosures
(effective for annual periods beginning on or after 1 January
2007)
|
· |
IFRIC
Interpretation 8 - Scope of IFRS 2 (effective for annual periods
beginning
on or after 1 May 2006)
|
· |
IFRIC
Interpretation 9 - Reassessment of Embedded Derivatives (effective
for
annual periods beginning on or after 1 June
2006)
|
· |
IFRIC
Interpretation 10 - Interim Financial Reporting and Impairment
(effective
for annual periods beginning on or after 1 November
2006)
|
· |
IFRIC
Interpretation 11 - IFRS 2 - Group and Treasury Share Transactions
(effective for annual periods beginning on or after 1 March
2007)
|
· |
IFRIC
Interpretation 12 - Service Concession Arrangements (effective
for annual
periods beginning on or after 1 January
2008)
|
2. |
Revenues
|
2006
|
2005
|
||||||
RMB’000
|
RMB’000
|
||||||
Revenues
|
|||||||
Traffic
revenues
|
|||||||
-
Passenger
|
31,229,591
|
21,367,747
|
|||||
-
Cargo and mail
|
5,776,671
|
5,087,244
|
|||||
Commission
income
|
125,576
|
185,827
|
|||||
Ground
service income
|
781,130
|
806,755
|
|||||
Cargo
handling income
|
289,530
|
292,488
|
|||||
Rental
income from operating subleases of aircraft
|
-
|
183,260
|
|||||
Others
|
263,169
|
198,175
|
|||||
38,465,667
|
28,121,496
|
||||||
Less:
Business tax (Note)
|
(976,792
|
)
|
(667,053
|
)
|
|||
37,488,875
|
27,454,443
|
Note:
|
Except
for traffic revenues derived from inbound international and regional
flights, which are not subject to the People’s Republic of China (the
“PRC”) business tax, the Group’s traffic revenues, commission income,
ground service income, cargo handling income and other revenues
are
subject to PRC business tax levied at rates ranging from 3% to
5%,
pursuant to PRC business tax rules and
regulations.
|
3. |
Segmental
information
|
(a)
|
Primary
reporting format by business
segment
|
Passenger
|
Cargo
and logistics
|
Unallocated
|
Total
|
||||||||||
RMB’000
|
|
RMB’000
|
RMB’000
|
RMB’000
|
|
||||||||
Traffic
revenues
|
33,489,978
|
2,842,836
|
-
|
36,332,814
|
|||||||||
Other
revenues and operating income
|
1,066,296
|
709,069
|
140,525
|
1,915,890
|
|||||||||
Total
segment revenue
|
34,556,274
|
3,551,905
|
140,525
|
38,248,704
|
|||||||||
Inter-segment
revenue
|
(759,829
|
)
|
-
|
-
|
(759,829
|
)
|
|||||||
Revenues
|
33,796,445
|
3,551,905
|
140,525
|
37,488,875
|
|||||||||
Operating
(loss)/profit - segment results
|
(2,770,861
|
)
|
(242,526
|
)
|
21,947
|
(2,991,440
|
)
|
||||||
Interest
income
|
112,181
|
6,247
|
1,733
|
120,161
|
|||||||||
Finance
costs
|
(776,647
|
)
|
(93,026
|
)
|
(7,906
|
)
|
(877,579
|
)
|
|||||
Share
of results of associates
|
103,566
|
-
|
-
|
103,566
|
|||||||||
Share
of results of jointly controlled entities
|
29,595
|
-
|
-
|
29,595
|
|||||||||
(Loss)/profit
before income tax
|
(3,302,166
|
)
|
(329,305
|
)
|
15,774
|
(3,615,697
|
)
|
||||||
Taxation
|
198,088
|
(30,262
|
)
|
(4,894
|
)
|
162,932
|
|||||||
(Loss)/profit
for the year
|
(3,104,078
|
)
|
(359,567
|
)
|
10,880
|
(3,452,765
|
)
|
||||||
The
segment results for the year ended 31 December 2005 are as
follows:
|
|||||||||||||
|
Passenger
|
Cargo
and logistics
|
Unallocated
|
Total
|
|||||||||
|
RMB’000
|
RMB’000
|
RMB’000
|
RMB’000
|
|||||||||
Traffic
revenues
|
23,182,516
|
2,731,636
|
-
|
25,914,152
|
|||||||||
Other
revenues and operating income
|
1,012,076
|
574,776
|
97,911
|
1,684,763
|
|||||||||
Total
segment revenue
|
24,194,592
|
3,306,412
|
97,911
|
27,598,915
|
|||||||||
Inter-segment
revenue
|
(144,472
|
)
|
-
|
-
|
(144,472
|
)
|
|||||||
Revenues
|
24,050,120
|
3,306,412
|
97,911
|
27,454,443
|
|||||||||
Operating
(loss)/profit - segment results
|
(165,559
|
)
|
167,414
|
12,393
|
14,248
|
||||||||
Interest
income
|
120,155
|
6,149
|
2,396
|
128,700
|
|||||||||
Finance
costs
|
(623,536
|
)
|
(83,518
|
)
|
4
|
(707,050
|
)
|
||||||
Share
of results of associates
|
(9,030
|
)
|
-
|
-
|
(9,030
|
)
|
|||||||
Share
of results of jointly controlled entities
|
(4,300
|
)
|
-
|
-
|
(4,300
|
)
|
|||||||
(Loss)/profit
before income tax
|
(682,270
|
)
|
90,045
|
14,793
|
(577,432
|
)
|
|||||||
Taxation
|
153,226
|
(11,415
|
)
|
(3,107
|
)
|
138,704
|
|||||||
(Loss)/profit
for the year
|
(529,044
|
)
|
78,630
|
11,686
|
(438,728
|
)
|
(b)
|
Secondary
reporting format by geographical
segment
|
2006
|
2005
|
||||||
RMB’000
|
RMB’000
|
||||||
Domestic
(the PRC, excluding Hong Kong)
|
20,803,441
|
13,357,972
|
|||||
Hong
Kong
|
3,244,846
|
3,150,123
|
|||||
Japan
|
3,582,962
|
2,644,372
|
|||||
Other
countries
|
9,857,626
|
8,301,976
|
|||||
Total
|
37,488,875
|
27,454,443
|
4. |
Other
operating income
|
2006
|
2005
|
||||||
RMB’000
|
RMB’000
|
||||||
Government
subsidies (Note)
|
462,370
|
193,069
|
|||||
Fair
value gains on financial instruments
|
|||||||
-
forward foreign exchange contracts
|
26,744
|
25,002
|
|||||
-
fuel hedging (losses)/gains
|
(64,849
|
)
|
27,208
|
||||
424,265
|
245,279
|
Note:
|
The
government subsidies represent (i) subsidies granted by local
government
to the Company in consideration of the relocation of the Company’s
international flights and related facilities from Shanghai Hongqiao
Airport to Pudong International Airport; and (ii) by various
local
municipalities to encourage the Group to operate certain routes
to places
where these municipalities are located; and (iii) other subsidies
granted
by the Central Government.
|
5. |
Revaluation
of property, plant and
equipment
|
6. |
Finance
costs
|
2006
|
2005
|
||||||
RMB’000
|
|
RMB’000
|
|||||
Interest
relating to obligations under finance leases
|
|||||||
-
wholly repayable within five years
|
244,962
|
195,764
|
|||||
-
not wholly repayable within five years
|
298,991
|
128,869
|
|||||
543,953
|
324,633
|
||||||
Interest
on loans from banks and financial institutions
|
|||||||
-
wholly repayable within five years
|
1,387,469
|
746,788
|
|||||
-
not wholly repayable within five years
|
193,067
|
243,433
|
|||||
1,580,536
|
990,221
|
||||||
Interest
relating to note payable
|
91,280
|
52,639
|
|||||
Amortisation
of the discount on zero coupon debentures
|
25,456
|
22,944
|
|||||
Interest
relating to a long-term payables
|
4,961
|
6,999
|
|||||
2,246,186
|
1,397,436
|
||||||
Less:
Amounts capitalised into advance payments on
|
|||||||
acquisition
of aircraft
|
(424,316
|
)
|
(279,989
|
)
|
|||
1,821,870
|
1,117,447
|
||||||
Net
foreign exchange gains
|
(888,402
|
)
|
(414,640
|
)
|
|||
Fair
value (gains)/ losses on financial instruments
|
|||||||
-
transfer from equity in respect of interest rate swaps
|
|||||||
qualified
as cash flow hedges
|
(55,889
|
)
|
4,243
|
||||
877,579
|
707,050
|
7. |
Taxation
|
(a)
|
Taxation
(credited)/charged to the consolidated income statement is as
follows:
|
2006
|
2005
|
||||||
RMB’000
|
RMB’000
|
||||||
Provision
for PRC income tax
|
55,964
|
(81,734
|
)
|
||||
Deferred
taxation
|
(218,896
|
)
|
(56,970
|
)
|
|||
(162,932
|
)
|
(138,704
|
)
|
(b)
|
The
Group operates international flights to overseas destinations.
There was
no material overseas taxation for the years ended 31 December
2006 and
2005, as there are double tax relieves between the PRC and the
corresponding jurisdictions (including Hong Kong) relating to
aviation
businesses.
|
8. |
Dividends
|
9. |
Loss
per share
|
10. |
Trade
receivables and notes
receivable
|
2006
|
2005
|
||||||
RMB’000
|
RMB’000
|
||||||
Less
than 31 days
|
1,556,144
|
1,580,082
|
|||||
31
to 60 days
|
147,439
|
134,095
|
|||||
61
to 90 days
|
44,602
|
122,377
|
|||||
91
to 180 days
|
132,977
|
34,097
|
|||||
181
to 365 days
|
102,534
|
13,302
|
|||||
Over
365 days
|
112,934
|
127,466
|
|||||
2,096,630
|
2,011,419
|
||||||
Less:
Provision for impairment of receivables
|
(93,775
|
)
|
(93,010
|
)
|
|||
Trade
receivables and notes receivable, net
|
2,002,855
|
1,918,409
|
11. |
Trade
payables and notes payable
|
2006
|
2005
|
||||||
RMB’000
|
RMB’000
|
||||||
Less
than 31 days
|
1,374,384
|
1,416,292
|
|||||
31
to 60 days
|
577,883
|
397,187
|
|||||
61
to 90 days
|
781,666
|
195,869
|
|||||
91
to 180 days
|
2,030,629
|
846,775
|
|||||
181
to 365 days
|
243,296
|
212,025
|
|||||
Over
365 days
|
82,352
|
45,749
|
|||||
5,090,210
|
3,113,897
|
12. |
Post
balance sheet event
|
13. |
Comparative
figures
|
B. |
Prepared
in accordance with PRC Accounting
Regulations
|
2006
RMB’000
|
2005
RMB’000
|
||||||
I. Revenue
from Main Operations:
|
36,805,731
|
26,392,028
|
|||||
Less:
Main Operating Cost
|
(34,052,721
|
)
|
(22,847,511
|
)
|
|||
Business
Taxes and additional levies
|
(932,748
|
)
|
(643,285
|
)
|
|||
II. Profit
from Main operations
|
1,820,262
|
2,901,232
|
|||||
Add:
Other Operating Revenue
|
777,745
|
617,208
|
|||||
Less:
Operating Expenses
|
(2,554,296
|
)
|
(1,951,059
|
)
|
|||
General
& Administrative Expenses
|
(1,907,583
|
)
|
(1,302,743
|
)
|
|||
Financial
Expenses
|
(761,678
|
)
|
(570,698
|
)
|
|||
III. Loss
from Operations
|
(2,625,550
|
)
|
(306,060
|
)
|
|||
Add:
Investment Income
|
26,700
|
6,405
|
|||||
Subsidy
Income
|
461,869
|
175,422
|
|||||
Non-operating
Income
|
175,345
|
228,265
|
|||||
Less:
Non-operating Expenses
|
(885,866
|
)
|
1,526
|
||||
IV. Total
(Loss)/Profit
|
(2,847,502
|
)
|
105,558
|
||||
Less:
Income Tax
|
(13,234
|
)
|
(9,549
|
)
|
|||
Gains
or Losses of Minority Shareholders
|
80,757
|
(35,535
|
)
|
||||
V. Net
(Loss)/Profit
|
(2,779,979
|
)
|
60,474
|
2006
|
2005
|
||||||
RMB’000
|
RMB’000
|
||||||
Consolidated
loss attributable to
|
|||||||
equity
holders of the Company
|
|||||||
As
stated in accordance with PRC Accounting Regulations
|
(2,779,979
|
)
|
60,474
|
||||
Impact
of IFRS and other adjustments:
|
|||||||
Difference
in depreciation charges for flight equipment
|
|||||||
due
to different depreciation lives
|
239,467
|
115,086
|
|||||
Difference
in depreciation charges for aircraft due to different
|
|||||||
depreciation
lives, revaluation and component accounting
|
(676,820
|
)
|
(611,368
|
)
|
|||
Provision
for post-retirement benefits
|
(84,982
|
)
|
(133,417
|
)
|
|||
Unrealised
(losses)/gains on derivatives
|
(42,344
|
)
|
27,779
|
||||
Deficit
on revaluation of property, plant and equipment
|
(235,046
|
)
|
-
|
||||
Recognition
of gain on sales & leaseback
|
74,207
|
-
|
|||||
Equity
investment difference amortisation under PRC GAAP
|
42,010
|
-
|
|||||
Goodwill
on acquisition of a subsidiary
|
(85,119
|
)
|
-
|
||||
Others
|
432
|
(81,068
|
)
|
||||
Minority
interests
|
58,585
|
6,957
|
|||||
Tax
and deferred tax adjustments
|
176,164
|
148,250
|
|||||
As
stated in accordance with IFRS
|
(3,313,425
|
)
|
(467,307
|
)
|
For
the year ended 31 December 2006
|
For
the year
ended 31
December 2005
|
Change
|
||||||||
Capacity
|
||||||||||
ATK
(available tonne-kilometers)
(millions)
|
11,065.57
|
8,751.49
|
26.44
|
%
|
||||||
-
Domestic routes
|
4,901.45
|
3,185.42
|
53.87
|
%
|
||||||
-
International routes
|
5,313.14
|
4,775.45
|
11.26
|
%
|
||||||
-
Hong Kong routes
|
850.98
|
790.32
|
7.68
|
%
|
||||||
ASK
(available seat-kilometers) (millions)
|
70,468.28
|
52,427.85
|
34.41
|
%
|
||||||
-
Domestic routes
|
42,687.36
|
27,467.54
|
55.41
|
%
|
||||||
-
International routes
|
22,226.69
|
19,672.20
|
12.99
|
%
|
||||||
-
Hong Kong routes
|
5,554.22
|
5,288.11
|
5.03
|
%
|
||||||
AFTK
(available freight tonne-kilometers)
(millions)
|
4,723.43
|
4,032.98
|
17.12
|
%
|
||||||
-
Domestic routes
|
1,059.58
|
713.34
|
48.54
|
%
|
||||||
-
International routes
|
3,312.74
|
3,005.25
|
10.23
|
%
|
||||||
-
Hong Kong routes
|
351.10
|
314.39
|
11.68
|
%
|
||||||
Hours
flown
(thousands)
|
678.28
|
467.75
|
45.01
|
%
|
||||||
Traffic
|
||||||||||
RTK
(revenue tonne-kilometers)
(millions)
|
6,930.97
|
5,395.17
|
28.47
|
%
|
||||||
-
Domestic routes
|
3,369.67
|
2,220.93
|
51.72
|
%
|
||||||
-
International routes
|
3,106.23
|
2,746.25
|
13.11
|
%
|
||||||
-
Hong Kong routes
|
455.07
|
427.99
|
6.33
|
%
|
||||||
RPK
(revenue passenger-kilometers)
(millions)
|
50,271.88
|
36,380.58
|
38.18
|
%
|
||||||
-
Domestic routes
|
31,272.41
|
20,277.57
|
54.22
|
%
|
||||||
-
International routes
|
15,478.45
|
12,818.98
|
20.75
|
%
|
||||||
-
Hong Kong routes
|
3,521.02
|
3,284.03
|
7.22
|
%
|
||||||
RFTK
(revenue freight tonne-kilometers)
(millions)
|
2,444.01
|
2,151.52
|
13.59
|
%
|
||||||
-
Domestic routes
|
574.70
|
409.56
|
40.32
|
%
|
||||||
-
International routes
|
1,728.01
|
1,607.16
|
7.52
|
%
|
||||||
-
Hong Kong routes
|
141.30
|
134.80
|
4.82
|
%
|
Number
of passengers carried
(thousands)
|
35,039.74
|
24,290.49
|
44.25
|
%
|
||||||
-
Domestic routes
|
27,744.49
|
18,206.93
|
52.38
|
%
|
||||||
-
International routes
|
4,807.75
|
3,762.39
|
27.78
|
%
|
||||||
-
Hong Kong routes
|
2,487.51
|
2,321.17
|
7.17
|
%
|
||||||
Weight
of cargo and mail carried
(millions of kg)
|
893.22
|
775.52
|
15.18
|
%
|
||||||
-
Domestic routes
|
438.55
|
315.59
|
38.96
|
%
|
||||||
-
International routes
|
358.98
|
347.81
|
3.21
|
%
|
||||||
-
Hong Kong routes
|
95.70
|
92.12
|
3.89
|
%
|
||||||
Load
Factor
|
||||||||||
Overall
load factor
(%)
|
62.64
|
61.65
|
0.99
|
|||||||
-
Domestic routes
|
68.75
|
69.72
|
-0.97
|
|||||||
-
International routes
|
58.46
|
57.51
|
0.95
|
|||||||
-
Hong Kong routes
|
53.48
|
54.15
|
-0.67
|
|||||||
Passenger
load factor
(%)
|
71.34
|
69.39
|
1.95
|
|||||||
-
Domestic routes
|
73.26
|
73.82
|
-0.56
|
|||||||
-
International routes
|
69.64
|
65.16
|
4.48
|
|||||||
-
Hong Kong routes
|
63.39
|
62.10
|
1.29
|
|||||||
Freight
load factor
(%)
|
51.74
|
53.35
|
-1.61
|
|||||||
-
Domestic routes
|
54.24
|
57.41
|
-3.17
|
|||||||
-
International routes
|
52.16
|
53.48
|
-1.32
|
|||||||
-
Hong Kong routes
|
40.24
|
42.88
|
-2.64
|
|||||||
Break-even
load factor
(%)
|
71.15
|
65.97
|
5.18
|
|||||||
Yield
and Cost Statistics
|
||||||||||
Revenue
tonne-kilometers yield (RMB)
|
5.20
|
4.79
|
8.56
|
%
|
||||||
-
Domestic routes
|
5.77
|
5.31
|
8.66
|
%
|
||||||
-
International routes
|
4.31
|
3.97
|
8.56
|
%
|
||||||
-
Hong Kong routes
|
7.12
|
7.32
|
-2.73
|
%
|
||||||
Passenger-kilometers
yield
(RMB)
|
0.61
|
0.57
|
7.02
|
%
|
||||||
-
Domestic routes
|
0.61
|
0.56
|
8.93
|
%
|
||||||
-
International routes
|
0.58
|
0.54
|
7.41
|
%
|
||||||
-
Hong Kong routes
|
0.71
|
0.76
|
-6.58
|
%
|
||||||
Freight
tonne-kilometers yield
(RMB)
|
2.30
|
2.31
|
-0.43
|
%
|
||||||
-
Domestic routes
|
0.87
|
0.85
|
2.35
|
%
|
||||||
-
International routes
|
2.54
|
2.48
|
2.42
|
%
|
||||||
-
Hong Kong routes
|
5.24
|
4.76
|
10.08
|
%
|
||||||
Available
tonne-kilometers unit cost (RMB)
|
3.70
|
3.16
|
17.09
|
%
|
1.
|
The
Group shall strengthen safety supervision and safety education
and enhance
the standard of safety management, in order to ensure flight
safety.
|
2.
|
The
Group shall improve the service-providing concepts, innovate
servicing
ideas, unify service standards, standardize the procedures of
servicing,
establish a swift response mechanism, enhance the standard of
both ground
services and air traffic services, and provide diversified and
customized
air transportation services to
passengers.
|
3.
|
In
terms of marketing, the Group shall change the mode of business
expansion
which was largely depended on acquiring additional aircraft,
updating
aircraft models and penetrating the intensely competitive markets
by
investing heavily in transport capacity. Instead, the Group shall
design
products in line with the requirements of passengers and enhance
the
profitability of aviation routes through formulating marketing
concepts
and innovating marketing strategies. The Group shall continue
to build up
Shanghai as an aviation hub, optimize the strategic planning
of the route
network and open up profitable routes on the basis of a prudent
analysis
on market research, so as to enlarge market share step by step
and to
increase total income by enhancing
profitability.
|
4.
|
The
Group shall continue to manage strictly the overall budget, strengthen
cost control, establish a reasonable capital structure which
can lower
financing costs, step up efforts on risk management, and avoid
financial
and operation risks.
|
5.
|
The
Group shall implement standardized management, strengthen the
training of
management and front line staff and increase its ability to execute
strategy. The Group shall step up efforts on IT investment and
integration, so as to enhance information security and the effectiveness
of applications.
|
6.
|
The
Group shall vigorously promote the building of its corporate
culture,
create a harmonic corporate environment and enhance the corporate
brand
image.
|
1.
|
Change
in the share capital
structure
|
2.
|
Share
capital structure
|
Total
number of shares
|
Approximate
percentage in shareholding
|
||||||
(%)
|
|||||||
1. A
shares
|
|||||||
(a) Unlisted
State-owned legal person shares
|
3,000,000,000
|
61.64
|
|||||
(b) Listed
shares
|
300,000,000
|
6.16
|
|||||
2. H
shares
|
1,566,950,000
|
32.20
|
|||||
3. Total
number of shares
|
4,866,950,000
|
100.00
|
*
|
The
Share Reform Plan of the Company was approved in the relevant
shareholders’ meeting of the holders of A shares of the Share Reform Plan
of the Company held on 18 December 2006, and the trading in the
A shares
was resumed on 12 January 2007. After the completion of the share
reform,
the change in the shareholding structure was as
follows:
|
Total
number of Shares
|
Approximate
percentage in shareholding
|
||||||
(%)
|
|||||||
1. A
shares
|
|||||||
(a) Listed
shares with trading moratorium
|
2,904,000,000
|
59.67
|
|||||
(b) Listed
shares without trading moratorium
|
396,000,000
|
8.13
|
|||||
2. H
shares
|
1,566,950,000
|
32.20
|
|||||
3. Total
number of shares
|
4,866,950,000
|
100.00
|
3.
|
Substantial
shareholders
|
Name
|
Number
of shares
|
Approximate
percentage in shareholding
|
|||||
(%)
|
|||||||
China
Eastern Air Holding Company (“CEA Holding”)
|
3,000,000,000
|
61.64
|
|||||
HKSCC
Nominees Limited
|
1,494,139,799
|
30.70
|
1.
|
Dividends
|
2.
|
Share
Reform
|
3.
|
Purchase,
Sale or Redemption of
Securities
|
4.
|
Material
Litigation
|
5.
|
Corporate
Governance Practices
|
6. |
Audit
Committee
|
7.
|
Changes
in the Board Personnel
|
8.
|
Material
Contracts
|
1.
|
On
10 April 2006, the Company entered into an aircraft purchase
agreement
with Boeing Company at Shanghai regarding the purchase of sixteen
Boeing
737NG series Aircraft, details of which are set out in the Company’s
announcements dated 11 April 2006 and 26 April 2006, and the
circular
dated 30 May 2006.
|
2.
|
On
26 June 2006, the Company entered into an aircraft purchase agreement
with
Airbus SAS at Beijing regarding the purchase of thirty Airbus
A320 series
aircraft, details of which are set out in the Company’s announcements
dated 26 June 2006 and 18 July 2006, and the circular dated 31
July
2006.
|
3.
|
For
material contracts entered into after the balance sheet date,
please refer
to the notes to the financial statements prepared in accordance
with the
IFRS.
|
9.
|
Miscellaneous
|
1.
|
On
12 May 2006, the Board decided that 上海眾華滬銀會計師事務所 (Shanghai Zhonghua
Certified Public Accountants), the Company’s PRC domestic auditors for the
financial year ended 31 December 2005, would not be re-appointed
as its
PRC domestic auditors for the financial year ending 31 December
2006, and
that 普華永道中天會計師事務所有限公司
(PricewaterhouseCoopers Zhong Tian CPAs Limited Company) was
selected
based on the result of a tender and was proposed to be appointed
as the
Company’s PRC domestic auditors. Such appointment was approved by
shareholders of the Company at its 2005 annual general meeting
held on 28
June 2006.
|
2.
|
On
29 December 2006, the Board approved the Provisional Code of
Conduct for
Securities Transactions by Employees of the
Company.
|