Unassociated Document


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________

FORM 6-K

Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
under the Securities Exchange Act of 1934

For the month of October 2008.

Commission File Number: 001-14550

China Eastern Airlines Corporation Limited
——————————————————————————————————— 
(Translation of Registrant’s name into English)

2550 Hongqiao Road
Hongqiao Airport
Shanghai, China 200335
———————————————————————————————————
(Address of principal executive offices)


Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:  x Form 20-F    o Form 40-F

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  o

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  o

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:  o Yes    x No

If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):    n/a 



SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

         
     
China Eastern Airlines Corporation Limited
(Registrant)
 
 
     
 
 
 
Date October 28, 2008   By  /s/ Luo Zhuping
  Name: Luo Zhuping
 
Title: Company Secretary
 
2


Certain statements contained in this announcement may be regarded as "forward-looking statements" within the meaning of the U.S. Securities Exchange Act of 1934, as amended. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual performance, financial condition or results of operations of the Company to be materially different from any future performance, financial condition or results of operations implied by such forward-looking statements. Further information regarding these risks, uncertainties and other factors is included in the Company's filings with the U.S. Securities and Exchange Commission. The forward-looking statements included in this announcement represent the Company's views as of the date of this announcement. While the Company anticipates that subsequent events and developments may cause the Company's views to change, the Company specifically disclaims any obligation to update these forward-looking statements, unless required by applicable laws. These forward-looking statements should not be relied upon as representing the Company's views as of any date subsequent to the date of this announcement.

(A joint stock limited company incorporated in the People’s Republic of China with limited liability)
(Stock code: 670)

THIRD QUARTERLY REPORT 2008

This announcement is made by China Eastern Airlines Corporation Limited pursuant to the disclosure requirement under Rule 13.09(2) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.
 
The financial statements of China Eastern Airlines Corporation Limited for the third quarter of 2008 were not audited, and were prepared in accordance with the PRC Accounting Regulations.
 
1.
IMPORTANT NOTICE

This announcement is made by China Eastern Airlines Corporation Limited (the “Company”) pursuant to the disclosure requirement under Rule 13.09(2) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (which requires any issuer listed on The Stock Exchange of Hong Kong Limited whose securities are also listed on other stock exchange(s) to simultaneously inform The Stock Exchange of Hong Kong Limited of any information released to any of such other exchange(s) and to ensure that such information is released to the market in Hong Kong at the same time as it is released to the other market(s)). At the request of the Shanghai Stock Exchange, a similar announcement of the even date is being made by the Company in Shanghai pursuant to the relevant provisions of the Shanghai listing rules and regulations.

This quarterly report was prepared in accordance with the regulations as prescribed by the China Securities Regulatory Commission in relation to disclosure of information in quarterly reports for listed companies, and is published simultaneously in Shanghai and Hong Kong. The financial statements of the Company for the third quarter of 2008 were not audited, and were prepared in accordance with the PRC Accounting Regulations.

The board of directors (the “Board”) and the supervisory committee of the Company, and its directors, supervisors and senior management hereby confirm that the information set out in this report does not contain any false information, misleading statement or material omission, and accept joint and several responsibility for the truthfulness, accuracy and completeness of the contents of this report.

Hu Honggao, an independent non-executive director, authorized Xie Rong, an independent non-executive director, to vote for him. Zhou Ruijin, an independent non-executive director, authorized Xie Rong, an independent non-executive director, to vote for him.

Mr. Li Fenghua, chairman of the Board of the Company and person-in-charge of the Company, Mr. Cao Jianxiong, president of the Company and officer-in-charge of accounting, Mr. Luo Weide, chief financial officer, and Mr. Wu Longxue, general manager of the accounting department and officer-in-charge of the accounting department (accounting officer), hereby declare that the financial report forming part of this quarterly report is true and complete.
 
3

 
2.
BASIC PARTICULARS OF THE COMPANY

2.1 Main accounting data and financial indicators
Currency: RMB

 
   
As at the end of
the reporting period
 
 
As at the end
of last year
   
Increase/decrease
as at the end of
the reporting period
compared with the end
of last year(%)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets (RMB’000)
 
 
75,471,082
 
 
67,141,714
 
 
12.41
 
Owners’ equity (or shareholders’
equity) (RMB’000)
 
 
528,337
 
 
2,862,865
 
 
-81.54
 
Net earnings per share attributable
to the shareholders of listed
company (RMB)
 
 
0.1086
 
 
0.5882
 
 
-81.54
 
 
 
 
 
 
 
 
 
From the beginning of the year to the end
of the reporting period (January to September)
 
Increase/decrease
compared with
the same period
last year(%)
 
Net cash flow generated from
operating activities (RMB’000)
         
1,657,949
   
-69.79
 
Net cash flow generated from
operating activities per share
(RMB)
         
0.3407
   
-69.79
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reporting period
(July to September)
last year (%)
 
 
From the beginning
of the year to
the end of the
reporting period (January to September)
 
 
Increase/decrease
for the reporting
period compared
with the same period
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net profit attributable to shareholders
of listed company (RMB’000)
 
 
-2,333,847
 
 
-2,292,226
 
 
-339.01
 
Basic earnings per share (RMB)
 
 
-0.4795
 
 
-0.4710
 
 
-339.01
 
Basic earnings per share after
non-recurring gains and losses (RMB)
 
 
-
 
 
-0.5642
 
 
-
 
Diluted earnings per share (RMB)
 
 
-0.4795
 
 
-0.4710
 
 
-339.01
 
Return on net assets (fully diluted) (%)
 
 
-441.73
 
 
-433.86
 
 
Decreased by 465.3
percentage points
 
Return on net assets (fully diluted)
after deducting non-recurring losses
(%)
 
 
-447.09
 
 
-519.73
 
 
Decreased by 467.34 percentage points
 

4


Non-recurring gains or losses
 
 
From the beginning of the year
to the end of the reporting period
 
 
 
 
(January to September)
(RMB’000)
 
 
 
 
Excluding method: consolidated
exclusion
 
 
 
 
 
 
Gains or losses from disposal of non current assets
 
 
334,378
 
Net non-operating income other than the aforementioned items
 
 
-15,817
 
Subsidy income
 
 
210,508
 
Impact of the aforementioned items on minority shareholders
 
 
-75,347
 
Total
 
 
453,722
 
 
2.2 The total number of the Company’s shareholders and the shareholdings of the 10 largest holders of shares not subject to selling moratorium as at the end of the reporting period
Unit: Shares

Total number of shareholders as at the end of the reporting period
 
190,700
 
 
Shareholdings of the 10 largest holders of circulating shares
not subject to selling moratorium
               
Name of shareholders (in full)
   
Number of circulating
shares not subject to
selling moratorium held
at the end of the period
   
Class
 
               
HKSCC NOMINEES LIMITED
   
1,544,701,139
   
Overseas listed
foreign shares
 
               
TEMASEK FULLERTON
ALPHA PTE LTD
   
9,999,969
   
RMB ordinary
shares
 
UBS AG
   
8,030,924
   
RMB ordinary
shares
 
               
MORGAN STANLEY &
CO. INTERNATIONAL PLC.
   
6,499,420
   
RMB ordinary
shares
 
   
4,800,902
   
RMB ordinary
shares
 
   
3,164,833
   
RMB ordinary
shares
 
ARSENTON NOMINEES
LIMITED
   
1,500,000
   
Overseas listed
foreign shares
 
               
   
1,430,098
   
RMB ordinary
shares
 
   
1,137,588
   
RMB ordinary
shares
 
DEUTSCHE BANK
AKTIENGESELLSCHAFT
   
1,028,965
   
RMB ordinary
shares
 
 
 
 
5

 
3.
IMPORTANT MATTERS

3.1 The details of and reasons for the substantial changes in main items of financial statements and financial indicators of the Company
 
x Applicable  o  Not applicable

1. Balance Sheet Items
(RMB’000)
 
 
 
 
 
Balance as
at the end
of the period
 
 
Balance as
at the
beginning
of the year
 
 
Increase/
decrease
 
 
Reasons for the change
 
Monetary fund
 
 
 
 
 
4,853,225
 
 
2,127,691
 
 
128%
 
 
Note 1
 
Tradable financial assets
 
 
 
 
 
149,209
 
 
95,547
 
 
56%
 
 
Note 2
 
Prepayments
 
 
 
 
 
803,257
 
 
382,031
 
 
110%
 
 
Note 3
 
Dividends receivable
 
 
 
 
 
490
 
 
3,917
 
 
-87%
 
 
Note 4
 
Long-term equity investments
 
 
 
 
 
1,403,725
 
 
990,758
 
 
42%
 
 
Note 5
 
Amortization of long-term
payment
 
 
 
 
 
311,705
 
 
219,041
 
 
42%
 
 
Note 6
 
Tradable financial liability
 
 
 
 
 
107,579
 
 
41,796
 
 
157%
 
 
Note 7
 
Bill payables
 
 
 
 
 
2,152,034
 
 
1,615,773
 
 
33%
 
Note 8
 
Trade payables
 
 
 
 
 
10,732,153
 
 
7,159,660
 
 
50%
 
 
Note 9
 
Receivables in advance
 
 
 
 
 
68,134
 
 
131,212
 
 
-48%
 
 
Note 10
 
Interest payables
 
 
 
 
 
257,594
 
 
393,092
 
 
-34%
 
 
Note 11
 
Other current liabilities
 
 
 
 
 
-14,670
 
 
21,011
 
 
-170%
 
 
Note 12
 
Undistributed profit
 
 
 
 
 
-5,554,030
 
 
-3,261,804
 
 
70%
 
 
Note 13
 
Total owner’s equity
attributable to the parent
 
 
 
 
 
528,337
 
 
2,862,865
 
 
-82%
 
 
Note 14
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2. Income Statement Items
(RMB’000)
 
 
 
 
 
Amount for
the period
 
 
Amount
for the
corresponding
period of the
previous year
 
 
Increase/
decrease
 
 
Reasons for
the change
 
Financial expenses, net
 
 
 
 
 
442,632
 
 
127,017
 
 
248%
 
 
Note 15
 
Impairment loss on assets
 
 
 
 
 
-3,658
 
 
16,500
 
 
-122%
 
 
Note 16
 
Gains on changes in fair value
 
 
 
 
 
-270,806
 
 
20,425
 
 
-1426%
 
 
Note 17
 
Investment gains/(losses)
 
 
 
 
 
11,397
 
 
33,897
 
 
-66%
 
 
Note 18
 
Non-operating income
 
 
 
 
 
32,882
 
 
78,171
 
 
-58%
 
 
Note 19
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3. Cash Flow Statement Items
(RMB’000)
 
 
 
 
 
Amount for
the period
 
 
Amount for the
corresponding
period of the
previous year
 
 
Increase/
decrease
 
 
Reasons for
the change
 
Other cash received relating
to operating activities
 
 
 
 
 
471,691
 
 
918,028
 
 
-49%
 
 
Note 20
 
Cash payment to and
for employees
 
 
 
 
 
4,337,868
 
 
2,801,909
 
 
55%
 
 
Note 21
 
Other cash paid relating
to operating activities
 
 
 
 
 
1,005,062
 
 
488,150
 
 
106%
 
 
Note 22
 
Cash received from recovery
of investments
 
 
 
 
 
38,972
 
 
-
 
 
-
 
 
Note 23
 
Net cash received from disposal
of fixed assets, intangible assets
and other long-term assets
 
 
 
 
 
1,797,704
 
 
51,940
 
 
3361%
 
 
Note 24
 
Cash paid for acquisition of fixed
assets, intangible assets and
other long-term assets
 
 
 
 
 
6,422,700
 
 
2,004,339
 
 
220%
 
 
Note 25
 
Cash paid for acquisition
of investments
 
 
 
 
 
384,186
 
 
92,415
 
 
316%
 
 
Note 26
 
Cash received from borrowings
 
 
 
 
 
21,164,117
 
 
12,115,147
 
 
75%
 
 
Note 27
 
Effect of foreign exchange
rate changes on cash and cash
equivalents
 
 
 
 
 
-54,791
 
 
116,198
 
 
-147%
 
 
Note 28
 

6


Note 1: Increase of bank deposit;

Note 2: This item shall be analysed after consolidation with tradable financial liability, and the amount after consolidation is not substantially different as compared to the amount at the beginning of the year;

Note 3: Increase in prepayments for the purchase of fixed assets;

Note 4: Dividends received from associated companies;

Note 5: Additional investments in, among others, Xingfu Airlines;

Note 6: Increase in, among others, modification fees for aircraft under operating leases;

Note 7: This item shall be analysed after consolidation with tradable financial assets, and the amount after consolidation is not substantially different as compared to the amount at the beginning of the year;

Note 8: Increase in the business volume of bill payables;

Note 9: Increase in, among others, aircraft fuel charges and take-off and landing charges;

Note 10: Decrease in the proceeds from the sales in advance of carriage;

Note 11: Decrease in long-term borrowings;

Note 12: Deferred loss incurred from sales & leaseback;

Note 13: Increase in losses;

Note 14: Increase in losses;

Note 15: Increase in exchange losses;

Note 16: Writing off of bad loan losses;

Note 17: Losses in option contracts for aircraft fuel due to the fluctuations of the crude oil price;

Note 18: Dissatisfactory performance of associate companies invested;

Note 19: Decrease of other non-operating income;

Note 20: Decrease of subsidy income;

Note 21: Increase in salary and social security fund;

Note 22: Increase in other operating expenses paid;

Note 23: Disposal of investment companies;

Note 24: Fixed asset disposal income derived from sales & leaseback of cargo carriers;

Note 25: Increase in newly purchased aircraft;

Note 26: Additional investments in, among others, Xingfu Airlines;

Note 27: Increase in total borrowings;

Note 28: Increase in exchange losses.

7


3.2 Analysis of the progress of other significant events and their effects and proposed solutions

o Applicable  x  Not applicable

3.3 The status of implementation of the matters undertaken by the Company, shareholders and the ultimate controller

x Applicable  o  Not applicable

The share reform was completed by the Company on 12 January 2007. China Eastern Air Holding Company undertakes that:

 
(1)
the original non-circulating shares of the Company held by it shall not be listed and traded within 36 months from the day of the implementation of the share reform plan; and

 
(2)
shall bear all the expenses in relation to the share reform plan.

The shareholder of non-circulating shares of the Company represented that it shall perform the undertakings in good faith and accept relevant legal responsibilities. Unless the transferee(s) is/are willing and able to accept the responsibilities of the undertakings, the shareholder of non-circulating shares of the Company shall not transfer any shares held.

Status of implementation: faithfully implemented.

3.4 Warnings of and reasons for any expected accumulated losses from the beginning of the year to the end of the following reporting period or substantial changes in profitability compared to the same period last year

x Applicable  o  Not applicable

The Company recorded a greater loss in the third quarter of 2008. As the fourth quarter is the traditional off-season for the aviation industry and the demands in the aviation markets may not be revived in the near future, the Company expects to record a loss for the year 2008.

3.5 Particulars of Securities investment

x Applicable  o  Not applicable

No. Stock code
   
 
   
Stock
short name
   
Number
of shares
held at
the end of
the reporting
period
(shares)
 
 
Initial cost
of investment
 
 
Carrying
amount at
the end of
the reporting
period
 
 
Carrying
amount at
the beginning
of the
reporting
period
 
 
Item for
accounting
purpose
 
 
 
 
 
 
 
 
 
 
 
 
 
(RMB)
 
 
(RMB)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1 600377
 
 
 
 
 
JS Co, Ltd.
 
 
200,000
 
 
360,000
 
 
360,000
 
 
-
 
 
Financial
assets
available
for sale
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2 000563
 
 
 
 
 
 
 
216,000
 
 
203,040
 
 
203,040
 
 
-
 
 
Financial
assets
available
for sale
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
 
 
 
 
 
 
 
-
 
 
563,040
 
 
563,040
 
 
-
 
 
-
 

8

 
By order of the Board of
CHINA EASTERN AIRLINES CORPORATION LIMITED
Li Fenghua
Chairman

The directors of the Company as at the date of this announcement are:

Li Fenghua
(Chairman, Non-executive Director)
Li Jun
(Vice Chairman, Non-executive Director)
Cao Jianxiong
(President, Executive Director)
Luo Chaogeng
(Non-executive Director)
Luo Zhuping
(Executive Director)
Hu Honggao
(Independent non-executive Director)
Peter Lok
(Independent non-executive Director)
Wu Baiwang
(Independent non-executive Director)
Zhou Ruijin
(Independent non-executive Director)
Xie Rong
(Independent non-executive Director)

Shanghai, the People’s Republic of China
28 October 2008