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 2017

 

Commission File Number: 001-14550

 

China Eastern Airlines Corporation Limited

———————————————————————————————————

(Translation of Registrant’s name into English)

 

Board Secretariat’s Office

Kong Gang San Lu, Number 88

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    ¨ 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):  ¨

 

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):  ¨

 

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:  ¨ 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 26, 2017

  By /s/ Wang Jian
        Name: Wang Jian
        Title: Company Secretary

 

 

 

 

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.

 

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

 

 

 

2017 THIRD QUARTERLY REPORT

 

This announcement is made pursuant to Rule 13.09 and Rule 13.10B of the Listing Rules and the Inside Information Provisions (as defined under the Listing Rules) under Part
XIVA of the Securities and Futures Ordinance.
 
The financial statements of the Company for the third quarter of 2017 were not audited, and were prepared in accordance with the China Accounting Standards for Business Enterprises.

 

1.IMPORTANT NOTICE

 

This announcement is made by China Eastern Airlines Corporation Limited (the “Company”) pursuant to the disclosure requirement under Rule 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “Listing Rules”) (which requires any issuer listed on The Stock Exchange of Hong Kong Limited (the “Hong Kong Stock Exchange”) whose securities are also listed on other stock exchange(s) to simultaneously inform the Hong Kong Stock Exchange 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 (the “CSRC”) 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 2017 were not audited, and were prepared in accordance with the China Accounting Standards for Business Enterprises.

 

– 1

 

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 quarterly report does not contain false information, misleading statement or material omission, and accept joint and several responsibility for the correctness, accuracy and completeness of the information set out in this quarterly report.

 

All directors of the Company attended the meeting of the Board to consider this quarterly report.

 

Liu Shaoyong, the person-in-charge of the Company, Ma Xulun, the officer-in-charge of accounting of the Company, and Wu Yongliang, the officer-in-charge of the accounting department (accounting officer) of the Company hereby confirm that the financial statements forming part of this quarterly report are true, accurate and complete.

 

The financial statements in the third quarterly report of the Company are unaudited.

 

2.MAIN FINANCIAL DATA AND CHANGES IN SHAREHOLDERS OF THE COMPANY

 

2.1Main financial data

 

Unit: million Currency: RMB

  

           Increase/ 
           decrease as 
           at the end 
           of the 
   As at       reporting 
   the end       period 
   of the   As at   compared 
   reporting   the end of   with the end 
   period   last year   of last year 
         (%) 
             
Total assets   223,652    210,051    6.48 
Net assets attributable to shareholders of the listed company   54,552    47,186    15.61 

 

       From the     
   From the   beginning of     
   beginning of   last year to     
   the year to   the end of   Increase/ 
   the end of   the reporting   decrease 
   the reporting   period last   compared 
   period (from   year (from   with the 
   January to   January to   same period last 
   September)   September)   year (%) 
                
Net cash flows from operating activities   14,528    19,222    –24.42 

 

– 2

 

       From the     
   From the   beginning of     
   beginning of   last year to     
   the year to   the end of   Increase/ 
   the end of   the reporting   decrease 
   the reporting   period last   compared 
   period (from   year (from   with the 
   January to   January to   same period last 
   September)   September)   year (%) 
             
Revenue   77,505    75,408    2.78 
Net profit attributable to shareholders of the listed company   7,915    6,694    18.24 
Net profit attributable to shareholders of the listed company after deducting non-recurring profit and loss   5,649    6,249    –9.60 
Weighted average return on net assets (%)             Decreased by 
    15.45    16.19    0.74 pts 
Basic earnings per share (RMB/share)   0.5471    0.4928    11.02 
Diluted earnings per share (RMB/share)   0.5471    0.4928    11.02 

 

Note: The calculation of earnings per share of the Company is based on the weighted average number of outstanding ordinary shares of the parent company. The weighted average number of outstanding ordinary shares of the parent company for the reporting period and for the corresponding period last year was 14.467 billion shares and 13.582 billion shares respectively.

 

– 3

 

Non-recurring profit and loss and relevant amounts

 

Unit: million Currency: RMB

 

       Amount    
       from the    
       beginning of    
       the year to    
       the end of    
   Amount for   the reporting    
   the Period   period (from    
   (from July to   January to    
Item  September)   September)   Description
            
Gains from disposal of non-current assets   27    25    
Gains from disposal of long-term investments        12    
Gains from disposal of subsidiaries        1,754   Transfer of equity interest in Eastern Air Logistics Co., Ltd (“Eastern Logistics”)
Government grants recognized in profit or loss of the current period, excluding those closely related to the normal operation of the Company and granted on an ongoing basis in fixed amount or fixed quota in accordance with government policies and regulations   100    676    
Non-operating incomes and expenses other than the above   158    277    
Effect on minority interests (net of tax)   –15    –43    
Effect on income tax   –70    –435    
              
Total   200    2,266    

 

– 4

 

2.2The total number of the Company’s shareholders and the shareholding of the 10 largest shareholders and the shareholding of the 10 largest holders of listed shares (or holders of shares without trading moratorium) as at the end of the reporting period (30 September 2017)

 

Unit: Shares

 

Total number of shareholders 275,947

 

Shareholding of the 10 largest shareholders

   Shareholdings       Number of shares   Pledged or locked-up   
   as at the end of       with trading   Status of  Number of   Nature of
Name of shareholder (in full)  the period   Proportion   moratorium held   shares  shares   shareholders
       (%)               
                       
China Eastern Air Holding Company (中國東方航空集團公司) (“CEA Holding”)   5,072,922,927    35.06%      Nil      State-owned legal person
                           
HKSCC NOMINEES LIMITED   4,182,443,289    28.91%      PledgedNote  960,000,000   Overseas legal person
                           
China Securities Finance Corporation Limited (中國證券金融股有限公司)   612,745,734    4.24%      Nil       State-owned legal person
                           
China National Aviation Fuel Holding Company (中國航空油料集團公司)   504,767,895    3.49%       Nil      State-owned legal person
                           
DELTA AIR LINES INC   465,910,000    3.22%       Nil    –   Overseas legal person
                           
Shanghai Licheng Information Technology Consulting Co., Ltd. (上 海勵程信息技術諮詢有限公司)   465,838,509    3.22%       Pledged   465,838,509   Domestic non- state-owned legal person
                           
CES Finance Holding Co., Ltd. (東航金控有限責任公司) (“CES Finance”)   457,317,073    3.16%       Nil    –   State-owned legal person
                           
China COSCO Shipping Corporation Limited (中國遠洋海運集團有限公司)   232,919,254    1.61%       Nil    –   State-owned legal person
                           
Central Huijin Asset Management Ltd. (中央匯金資管理有限責任公司)   70,984,100    0.49%       Nil    –   State-owned legal person
                           
Shanghai Alliance Investment Limited (上海聯和投資有限公司)   65,615,429    0.45%       Nil    –   State-owned legal person

 

– 5

 

Shareholding of the 10 largest holders of shares without trading moratorium

   Number of        
   listed shares        
   without trading        
Name of shareholder  moratorium held   Class and number of shares
       Class  Number 
            
China Eastern Air Holding Company (中國東方航空集團公司)   5,072,922,927   RMB ordinary shares   5,072,922,927 
              
HKSCC NOMINEES LIMITED   4,182,443,289   Overseas listed foreign shares   4,182,443,289 
              
China Securities Finance Corporation Limited (中國證券金融股 有限公司)   612,745,734   RMB ordinary shares   612,745,734 
              
China National Aviation Fuel Holding Company (中國航空油料集團公司)   504,767,895   RMB ordinary shares   504,767,895 
              
DELTA AIR LINES INC   465,910,000   Overseas listed foreign shares   465,910,000 
              
Shanghai Licheng Information Technology Consulting Co., Ltd. (上海勵程信息 技術諮詢有限公司)   465,838,509   RMB ordinary shares   465,838,509 
              
CES Finance Holding Co., Ltd. (東航金控有限責任公司)   457,317,073   RMB ordinary shares   457,317,073 
              
China COSCO Shipping Corporation Limited (中國遠洋海運集團有限公司)   232,919,254   RMB ordinary shares   232,919,254 
              
Central Huijin Asset Management Ltd. (中央匯金資 管理有限責任公司)   70,984,100   RMB ordinary shares   70,984,100 
              
Shanghai Alliance Investment Limited (上海聯和投資有限公司)   65,615,429   RMB ordinary shares   65,615,429 

 

– 6

 

Description of connected relationship or activities in concert among the above shareholders   Among the 4,182,443,289 shares held by HKSCC NOMINEES LIMITED, 2,626,240,000 shares are held by CES Global Holdings (Hong Kong) Limited (“CES Global”) in the capacity of beneficial owner; CEA Holding owns 100% equity interest in CES Finance; CES Finance owns 100% equity interest in CES Global; thus, CEA Holding indirectly owns 100% equity interest in CES Global. The Company is not aware of any other connected relationship or activities in concert among the 10 largest holders of shares without trading moratorium.

 

Description of the preference shareholders with restored voting rights and the number of shares held by them   Not applicable

 

Note:On 30 August 2017, CES Global pledged an aggregate of 960,000,000 H shares of the Company, all of which are listed shares without trading moratorium, including 700,000,000 H shares of the Company held by it to China Construction Bank (Asia) Corporation Limited and 260,000,000 H shares of the Company, all of which are listed shares without trading moratorium held by it to The Hong Kong and Shanghai Banking Co., Limited, for a pledged period of not more than 12 months.

 

2.3The total number of the Company’s preference shareholders and the shareholding of the 10 largest preference shareholders and the shareholding of the 10 largest preference holders of shares without trading moratorium as at the end of the reporting period

 

Not applicable

 

– 7

 

3.IMPORTANT MATTERS

 

3.1Details of and reasons for the substantial changes in main items of financial statements and financial indicators of the Company

 

    Change in the    
    reporting period    
    as compared to    
    the same period    
Item   last year   Reason for the Change
    (%)    
         
Business tax   84.11   Primarily due to relevant tax adjustments which were originally included in administrative expenses by the Company are now accounted for under “Tax and surcharges” in accordance with the “Notice on Issuing the Regulations on the Accounting Treatment of Value-added Tax” issued by the Ministry of Finance, PRC (Cai Kuai [2016] No. 22)
         
Finance costs   –72.20   Primarily due to the impact of exchange gains or losses. The appreciation of RMB from January to September in 2017 resulted in exchange gains of RMB1.298 billion, as compared to exchange losses amounting to RMB1.768 billion due to depreciation in RMB during the same period last year.
         
Investment income   659.85   Primarily due to the disposal of 100% equity interest in Eastern Logistics, resulting in an investment income of RMB1.754 billion
         
Other income   Not applicable   Pursuant to the “Accounting Standards for Business Enterprises No. 16 – Government Grant” published by the Ministry of Finance, the Company has reclassified government grants in relation to its ordinary business from “non-operating incomes” to “other income”.
         
Monetary capital   152.59   Primarily due to the enhancement of the Company’s liquidity, lowering of financial risks and the increase in cash and cash equivalents as at the end of the period
         
Prepayments   –38.02   Primarily due to the decrease in payment for aircraft fuel for the current period
         
Dividend receivables   84.93   Primarily due to the increase in distribution of dividends receivable from associates of the Company

 

– 8

 

    Change in the    
    reporting period    
    as compared to    
    the same period    
Item   last year   Reason for the Change
    (%)    
         
Other current assets   87.13   Primarily due to the increase in the Company’s value-added tax credit
         
Short-term borrowings   155.33   Primarily due to the adjustment in debt structure by the Company and increase in short-term borrowings for the current period
         
Bills payable   –90.54   Primarily due to the decrease in the use of bill payables for settlement by the Company during the reporting period
         
Tax payables   55.47   Primarily due to the increase in corporate income tax payable
         
Other current liabilities   –41.18   Primarily due to the repayment of super short-term commercial paper by the Company during the current period
         
Undistributed profits   85.30   Primarily due to realization of profits of the Company during the reporting period

 

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

 

(1)Implementation of Profits Distribution for the Year 2016

 

On 28 June 2017, the Company’s Profits Distribution Proposal for 2016 was considered and approval at the 2016 annual general meeting of the Company. It was proposed that a dividend of RMB0.49 per ten Shares (tax inclusive) be distributed in cash for the year 2016. Based on the total share capital of 14,467,585,682 Shares of the Company, the total amount of cash dividend would be approximately RMB708 million (tax inclusive). The record date fell on 9 August 2017. The ex-right and ex-dividend date and cash dividend payment date fell on 10 August 2017. For details, please refer to the announcement published by the Company in China Securities Journal, Shanghai Securities News and on the website of the Shanghai Stock Exchange on 3 August 2017 and the announcement published by the Company on the website of the Hong Kong Stock Exchange on 28 June 2017.

 

– 9

 

(2)Subscription of Equity Interest in AIR FRANCE-KLM by CEA Holding

 

On 27 July 2017, a wholly-owned subsidiary of CEA Holding, which is the controlling shareholder of the Company, entered into a conditional subscription agreement with AIR FRANCE-KLM, intending to provide for CEA Holding’s investment in AIR FRANCE-KLM through a reserved capital increase. With the amount of investment being around EUR375 million, CEA Holding intended to acquire 10% stake in AIR FRANCE-KLM’s share capital at the completion of the reserved capital increase. On the same day, Delta Air Lines, Inc. (“Delta”), which is the strategic shareholder of the Company, also entered into a conditional subscription agreement with AIR FRANCE- KLM and intended to acquire 10% stake in AIR FRANCE-KLM’s share capital at the completion of the reserved capital increase (the “Placement(s)”). On the same date, the Company entered into a marketing agreement with AIR FRANCE-KLM. On the basis of good business relationship between the two parties, the comprehensive business partnership has been further strengthened.

 

On 4 September 2017, the Placements to CEA Holding and Delta were approved at the general meeting of shareholders of AIR FRANCE-KLM. On 27 September 2017, the condition precedent relating to regulatory approvals by the relevant governmental authorities in respect of the completion of the Placements to CEA Holding and Delta has been satisfied. The settlement of the reserved capital increases and the admission on the regulated market of Euronext (mainly in the market of Paris and Amsterdam) of the related new shares occurred on 3 October 2017. At the completion of the Placements, CEA Holding holds 10% stake in AIR FRANCE-KLM’s share capital. In the meantime, Mr. Tang Bing, the director and vice president of the Company was appointed by CEA Holding as a director of AIR FRANCE-KLM.

 

CEA Holding, which is the controlling shareholder of the Company, and Delta, which is an important shareholder of the Company, strategically invested in AIR FRANCE-KLM to form a closer long-term partnership among the Company, AIR FRANCE-KLM and Delta. These three companies are complementary, mutually beneficial and the cooperation will achieve a win-win situation. These three companies will build a global network of airlines and will provide more convenient, efficient and high-quality travel services for passengers around the world. It will also help improve the Company’s competitiveness and influence in the global aviation market.

 

– 10

 

(3)Connected Transaction with Shanghai Eastern Airlines Investment Co., Limited

 

On 30 March 2017, during its second regular meeting in 2017, the Board of the Company considered and approved the proposal regarding the transfer of the land and buildings in the eastern district of the Shanghai Hongqiao International Airport to CEA Holding. On 28 June 2017, during its sixth ordinary meeting, the eighth session of the Board of the Company considered and approved the proposal regarding the change to the plan for handling the target land and buildings in the eastern district of the Shanghai Hongqiao International Airport, pursuant to which it was agreed that the transferee shall be changed from CEA Holding to its wholly-owned subsidiary, Shanghai Eastern Airlines Investment Co., Limited (“Eastern Investment”).

 

On 29 September 2017, the Company entered into the land use rights transfer agreement and the buildings compensation agreement with Eastern Investment in Shanghai. Pursuant to the said land use rights transfer agreement and the buildings compensation agreement, the Company agreed to transfer to Eastern Investment the land use rights in respect of the six parcels of land located near Terminal One of the Shanghai Hongqiao International Airport with a total area of approximately 371,652 square meters, and Eastern Investment agreed to compensate the Company for the transfer of the buildings on these six parcels of land (comprising of 90 buildings and constructions, 62 structures, and green belts with a total area of 31,623 square meters). The consideration of the target land and the compensation of the buildings amounted to RMB808,019,100 in total. The ownership of the target land and buildings erected thereon has been vested to Eastern Investment, and the issue relating to the 76 defective properties on the target land will be resolved altogether. For details, please refer to the announcement published by the Company in China Securities Journal, Shanghai Securities News and on the website of the Shanghai Stock Exchange on 29 September 2017 and the announcement published by the Company on the website of the Hong Kong Stock Exchange on 29 September 2017.

 

– 11

 

(4)Connected Transaction in Relation to Aircraft Operating Lease

 

The connected party under this connected transaction is CES International Financial Leasing Corporation Limited, a controlled subsidiary of CEA Holding (“CES Leasing”). On 27 April 2017, during its third regular meeting in 2017, the Board of the Company considered and approved the resolution regarding the transfer to CES Leasing of the purchase rights of five B737-800 Boeing aircraft and the provision of operating leasing under the agreement entered into between the Company (as purchaser) and Boeing Company (as seller) on 9 July 2015. On 10 August 2017, the Company entered into the aircraft lease agreements with a subsidiary established and wholly-owned by CES Leasing.

 

For details, please refer to the announcement published by the Company in China Securities Journal, Shanghai Securities News and on the website of the Shanghai Stock Exchange on 10 August 2017 and the announcement published by the Company on the website of the Hong Kong Stock Exchange on 10 August 2017.

 

– 12

 

3.3The status of implementation of the matters undertaken by the Company and shareholders holding more than 5% interests

 

                        Whether the
                        undertaking
                    Whether   has been strictly
                    there is an   implemented
Background of   Type of   Undertaking       Time and term   implementation   in a timely
undertaking   undertaking   party   Content of undertaking   of undertaking   period   manner
                         
Undertaking in relation to refinancing   To resolve defects in land and other property ownership   CEA Holding   Due to historical reasons, some of the land and properties injected by CEA Holding into the Company had not yet been transferred to the name of the Company. With regard to 17 properties which are located in Guangzhou and Shenzhen (with an aggregate GFA of approximately 1,996.51 square meters), CEA Holding undertook that it shall, resolve defects in building ownership by completing procedures for transferring property ownership to the Company, or transferring the relevant gains to the Company upon external disposal within 3 years; and CEA Holding shall bear the corresponding obligations in relation to the losses caused to the Company as a result of the failure of CEA Holding in completing the relevant procedures for transferring the relevant property ownership in a timely manner.   Time of undertaking: June 2014; term of undertaking: from 27 June 2014 to 30 June 2017   Yes   Completed

 

– 13

 

                        Whether the
                        undertaking
                    Whether   has been strictly
                    there is an   implemented
Background of   Type of   Undertaking       Time and term   implementation   in a timely
undertaking   undertaking   party   Content of undertaking   of undertaking   period   manner
                         
    To resolve defects in land and other property ownership   CEA Holding   Due to historical reasons, some of the land and property injected by CEA Holding into the Company had not yet been transferred to the name of the Company. With regard to 76 properties which are located in the Eastern District of Shanghai Hongqiao Airport (the relevant land ownership of which has been transferred to the Company) (with an aggregate GFA of approximately 146,700 square meters), relevant construction procedures were not completed for the buildings due to historical reasons, and therefore it is currently difficult to carry out ownership transfer. As a result, CEA Holding undertook that it shall, strive for opportunity to develop in the Eastern District of Shanghai Hongqiao Airport, and resolve defects in relevant building ownership by completing relevant procedures for transferring building ownership to the Company in batches upon fulfillment of conditions or through land replacement, the expected final completion time of which is approximately 10 to 12 years. The progress of resolving the above defects in property ownership and its results are subject to the overall development policy of the Eastern District of Shanghai Hongqiao Airport and its progress of implementation. CEA Holding shall bear the corresponding obligations in relation to the losses caused to the Company as a result of the failure of CEA Holding in completing the relevant procedures for transferring the relevant property ownership in a timely manner.   Time of undertaking: June 2014; term of undertaking: from 27 June 2014 to 30 June 2026   Yes   Completed
                         
Other undertaking   Trading moratorium of shares   CEA Holding/ CES Finance   CEA Holding and CES Finance undertook that they will not dispose of the 241,547,927 A shares and 457,317,073 A shares held by each of them, within 24 months from the lifting of the trading moratorium on 18 April 2016.   Time of undertaking: April 2016; term of undertaking: from 18 April 2016 to 17 April 2018   Yes   Yes

 

– 14

 

3.4Warning 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

 

Not applicable

 

  By order of the Board
 

CHINA EASTERN AIRLINES CORPORATION LIMITED

Wang Jian

  Company Secretary
  Shanghai, the People’s Republic of China
  26 October 2017

 

As at the date of this announcement, the directors of the Company include Liu Shaoyong (Chairman), Ma Xulun (Vice Chairman, President), Li Yangmin (Director, Vice President), Xu Zhao (Director), Gu Jiadan (Director), Tang Bing (Director, Vice President), Tian Liuwen (Director, Vice President), Li Ruoshan (Independent non-executive Director), Ma Weihua (Independent non-executive Director), Shao Ruiqing (Independent non-executive Director) and Cai Hongping (Independent non-executive Director).

 

– 15

 

4.APPENDICES

 

4.1Financial Statements

 

China Eastern Airlines Corporation Limited

Consolidated and Company’s Balance Sheet as at 30 September 2017

(Unaudited)

(RMB million)

 

  30 September   31 December   30 September   31 December 
   2017   2016   2017   2016 
Assets   Consolidated   Consolidated   Company   Company 
                 
Current assets                    
Monetary capital   4,390    1,738    3,940    1,002 
Hedge instruments   14    11    11    11 
Bills receivable       30         
Trade receivables   2,680    2,630    3,420    6,305 
Prepayments   1,712    2,762    1,201    2,166 
Dividends receivable   135    73    135    73 
Other receivables   3,580    4,213    12,773    12,882 
Inventory   2,400    2,248    42    38 
Non-current assets due within one year   87    140    90    111 
Other current assets   3,823    2,043    3,458    2,031 
                     
Total current assets   18,821    15,888    25,070    24,619 
                     
Non-current assets                    
Hedge instruments   87    137    87    137 
Financial assets available for sale   713    645    616    570 
Long-term equity investment   2,244    2,060    15,354    16,630 
Investment properties   315    321    30    31 
Fixed assets   159,865    150,751    105,295    97,264 
Construction in progress   27,847    25,755    26,331    24,582 
Intangible assets   2,058    2,418    1,374    1,404 
Goodwill   9,028    9,028    9,028    9,028 
Long-term deferred expenses   1,471    1,879    1,239    1,210 
Deferred income tax assets   84    79         
Other non-current assets   1,119    1,090    926    915 
                     
Total non-current assets   204,831    194,163    160,280    151,771 
                     
Total assets   223,652    210,051    185,350    176,390 

 

– 16

 

4.1Financial Statements (Cont’d)

 

China Eastern Airlines Corporation Limited

Consolidated and Company’s Balance Sheet as at 30 September 2017 (Cont’d)

(Unaudited)

(RMB million)

 

  30 September   31 December   30 September   31 December 
  2017   2016   2017   2016 
Liabilities and shareholders’ equity  Consolidated   Consolidated   Company   Company 
                 
Current liabilities                    
Short-term borrowings   25,490    9,983    24,110    9,245 
Hedge instruments   256    11    195    11 
Notes payable   106    1,120    80    1,107 
Trade payables   11,812    10,811    10,524    11,827 
Account collected in advance   1,117    966    820    708 
Settlement of vouchers   6,704    7,677    6,497    7,294 
Staff remuneration payable   2,938    4,025    2,018    1,993 
Tax payable   2,814    1,810    1,496    885 
Interest payable   844    932    627    691 
Other payables   2,056    3,455    9,944    12,715 
Non-current liabilities due within one year   9,673    10,289    6,663    6,216 
Other current liabilities   10,000    17,000    10,000    17,000 
                     
Total current liabilities   73,810    68,079    72,974    69,692 
                     
Non-current liabilities                    
Long-term borrowings   8,321    10,604    4,609    5,747 
Hedge instruments   38    47    38    47 
Bonds payable   17,296    17,286    17,296    17,286 
Long-term payables   61,032    58,514    41,385    37,546 
Long-term staff remuneration payable   2,487    3,085    1,933    2,305 
Special items payable   83    86    67    66 
Deferred income tax liabilities   68    86    73    95 
Other non-current liabilities   2,440    2,168    1,505    1,250 
                     
Total non-current liabilities   91,765    91,876    66,906    64,342 
                     
Total liabilities   165,575    159,955    139,880    134,034 

 

– 17

 

4.1Financial Statements (Cont’d)

 

China Eastern Airlines Corporation Limited

Consolidated and Company’s Balance Sheet as at 30 September 2017 (Cont’d)

(Unaudited)

(RMB million)

 

  30 September   31 December   30 September   31 December 
  2017   2016   2017   2016 
Liabilities and shareholders’ equity  Consolidated   Consolidated   Company   Company 
                 
Shareholders’ equity                    
Share capital   14,467    14,467    14,467    14,467 
Capital reserves   26,760    26,760    27,470    27,470 
Other comprehensive income   (2,657)   (2,817)   (1,973)   (2,140)
Surplus reserves   328    328    328    328 
Undistributed profits   15,654    8,448    5,178    2,231 
                     
Total equity attributable to shareholders of the parent company   54,552    47,186           
                     
Minority interests   3,525    2,910           
                     
Total shareholders’ equity   58,077    50,096    45,470    42,356 
                     
Total liabilities and shareholders’ equity   223,652    210,051    185,350    176,390 

 

Legal representative: Liu Shaoyong

Officer-in-charge of accounting: Ma Xulun

Officer-in-charge of the accounting department: Wu Yongliang

 

– 18

 

4.1Financial Statements (Cont’d)

 

China Eastern Airlines Corporation Limited

Consolidated and Company’s Income Statement for the Period from January to September 2017

(RMB million)

 

      Jul to Sep   Jul to Sep   Jan to Sep   Jan to Sep   Jul to Sep   Jul to Sep   Jan to Sep   Jan to Sep 
      2017   2016   2017   2016   2017   2016   2017   2016 
      Consolidated   Consolidated   Consolidated   Consolidated   Company   Company   Company   Company 
1.  Revenue   29,485    29,076    77,505    75,408    17,573    16,274    45,793    42,071 
   Less: Operating costs   23,022    22,135    65,643    59,870    14,201    12,494    39,753    33,605 
   Business tax and surcharges   62    35    197    107    14    7    54    16 
   Selling expenses   1,535    1,350    4,196    4,122    1,147    966    3,104    2,985 
   Administrative expenses   790    785    2,129    2,103    511    444    1,336    1,198 
   Finance expenses/ (income) – net   322    1,165    1,101    3,960    225    826    951    2,779 
   Assets impairment loss   7        16    3    7        7     
   Add: Gains arising from changes in fair value               2                2 
   Investment gains   91    53    2,006    264    153    53    1,141     358 
   Other income   975         3,714         550         2,262      
                                            
2.  Operating profit   4,813    3,659    9,943    5,509    2,171    1,590    3,991    1,848 
   Add: Non-operating income   368    1,235    1,027    3,967    296    758    889    2,251 
   Less: Non-operating expenses   25    14    35    22    24    6    28    10 
                                            
3.  Total profits   5,156    4,880    10,935    9,454    2,443    2,342    4,852    4,089 
   Less: Income tax expenses   1,287    1,149    2,439    2,190    645    606    1,196    928 
                                            
4.  Net profit   3,869    3,731    8,496    7,264    1,798    1,736    3,656    3,161 
                                            
   – Net profit attributable to shareholders of the parent company   3,568    3,461    7,915    6,694                     
                                            
   – Minority interests   301    270    581    570                     

 

– 19

 

4.1Financial Statements (Cont’d)

 

China Eastern Airlines Corporation Limited

Consolidated and Company’s Income Statement for the Period from January to September 2017 (Cont’d)

(RMB million)

 

      Jul to Sep   Jul to Sep   Jan to Sep   Jan to Sep   Jul to Sep   Jul to Sep   Jan to Sep   Jan to Sep 
      2017   2016   2017   2016   2017   2016   2017   2016 
      Consolidated   Consolidated   Consolidated   Consolidated   Company   Company   Company   Company 
                                    
5.  Earnings per share                           
   Basic earnings per share (RMB)   0.25    0.24    0.55    0.49        
                                            
   Diluted earnings per share (RMB)   0.25    0.24    0.55    0.49                     
                                            
6.  Other comprehensive income, net of tax                                        
   Other comprehensive income that cannot be reclassified into profit or loss in subsequent accounting periods                                        
   Changes arising from re- measuring net assets or net liabilities of defined benefit plan   181        365    30    181        332    34 
                                            
   Other comprehensive income that will be reclassified into profit or loss in subsequent accounting periods when meeting the prescribed conditions                                        
   Share of other comprehensive income of investees to be reclassified into profit and loss in subsequent accounting periods under the equity method when meeting the prescribed conditions   4         9    (7)   4         9    (7)
   Gain or loss from fair value movements of available- for-sale financial assets   (66)   83    33    118    (66)   83    17    110 

 

– 20

 

4.1Financial Statements (Cont’d)

 

China Eastern Airlines Corporation Limited

Consolidated and Company’s Income Statement for the Period from January to September 2017 (Cont’d)

(RMB million)

 

      Jul to Sep   Jul to Sep   Jan to Sep   Jan to Sep   Jul to Sep   Jul to Sep   Jan to Sep   Jan to Sep 
      2017   2016   2017   2016   2017   2016   2017   2016 
      Consolidated   Consolidated   Consolidated   Consolidated   Company   Company   Company   Company 
                                    
  Effective portion of gains or losses from cash flow hedge instruments   (104)   81    (241)   (97)   (104)   81    (207)   (97)
                                            
   Other comprehensive income, net of tax   15    164    166    44    15    164    151    40 
                                            
   Of which:                                        
   Other comprehensive income, net of tax, attributable to shareholders of the parent company   15    164    160    41                     
                                            
   Other comprehensive income, net of tax, attributable to minority interests             6    3                     
                                            
7.  Total comprehensive income   3,884    3,895    8,662    7,308    1,813    1,900    3,807    3,201 
   Of which:                                        
   Total comprehensive income attributable to shareholders of the parent company   3,583    3,625    8,075    6,735                     
                                            
   Total comprehensive income attributable to minority interests   301    270    587    573                     

 

Legal representative: Liu Shaoyong

Officer-in-charge of accounting: Ma Xulun

Officer-in-charge of the accounting department: Wu Yongliang

 

– 21

 

4.1Financial Statements (Cont’d)

 

China Eastern Airlines Corporation Limited

Consolidated and Company’s Cash Flow Statement for the Period from January to September 2017 (Unaudited)

(RMB million)

 

     For the nine   For the nine   For the nine   For the nine 
      months ended   months ended   months ended   months ended 
      30 September   30 September   30 September   30 September 
      2017   2016   2017   2016 
Item     Consolidated   Consolidated   Company   Company 
                    
1.  Cash flow from operating activities                
   Cash received from sales of goods and provision of labour services   81,236    79,314    50,622    44,577 
   Refund of taxes   1,942    1,778    1,754    926 
   Other cash received from operating activities   8,043    8,052    7,898    6,394 
                        
   Sub-total of cash inflow from operating activities   91,221    89,144    60,274    51,897 
                        
   Cash paid for purchase of goods and receiving of labour services   (52,754)   (48,608)   (35,501)   (26,600)
   Cash paid to and for employees   (14,038)   (13,703)   (7,001)   (6,739)
   Taxes paid   (4,014)   (2,840)   (2,124)   (1,256)
   Other cash paid for operating activities   (5,887)   (4,771)   (5,293)   (10,107)
                        
   Sub-total of cash outflow from operating activities   (76,693)   (69,922)   (49,919)   (44,702)
                        
   Net cash flows from operating activities   14,528    19,222    10,355    7,195 
                        
2.  Cash flow from investing activities                    
   Cash received from disposal of investment   12        266     
   Investment income in cash   70    138    173    138 

 

– 22

 

4.1Financial Statements (Cont’d)

 

China Eastern Airlines Corporation Limited

Consolidated and Company’s Cash Flow Statement for the Period from January to September 2017 (Cont’d) (Unaudited)

(RMB million)

 

     For the nine   For the nine   For the nine   For the nine 
      months ended   months ended   months ended   months ended 
      30 September   30 September   30 September   30 September 
      2017   2016   2017   2016 
Item     Consolidated   Consolidated   Company   Company 
                    
  Net cash recovered from disposals of fixed assets, intangible assets and other long-term assets   224    587    115    242 
   Net cash received from disposal of subsidiaries   1,897        2,433     
   Other cash received from investing activities   70    53    115    50 
                        
   Sub-total of cash inflow from investing activities   2,273    778    3,102    430 
                        
   Amount paid in cash in relation to purchases of fixed assets, intangible assets and other long-term assets   (19,140)   (24,485)   (17,818)   (22,826)
   Investments paid in cash   (33)       (283)    
   Other cash paid for investing activities   (4)   (4)        
                        
   Sub-total of cash outflow from investing activities   (19,177)   (24,489)   (18,101)   (22,826)
                        
   Net cash flow from investing activities   (16,904)   (23,711)   (14,999)   (22,396)

 

– 23

 

4.1Financial Statements (Cont’d)

 

China Eastern Airlines Corporation Limited

Consolidated and Company’s Cash Flow Statement for the Period from January to September 2017 (Cont’d) (Unaudited)

(RMB million)

 

     For the nine   For the nine   For the nine   For the nine 
      months ended   months ended   months ended   months ended 
      30 September   30 September   30 September   30 September 
      2017   2016   2017   2016 
Item     Consolidated   Consolidated   Company   Company 
                    
3.  Cash flow from financing activities                    
   Proceeds received in cash from investments       8,540        8,540 
   Cash received from borrowings   71,972    89,508    66,319    85,340 
   Cash received from bond issue       9,533        9,533 
   Other cash received in relation to financing activities       40        40 
                        
   Sub-total of cash inflow from financing activities   71,972    107,621    66,319    103,453 
                        
   Cash paid for repayment of indebtedness   (54,639)   (99,907)   (51,846)   (89,543)
   Cash payments for distribution of dividends, profits or payments of interest expense   (2,951)   (2,509)   (2,305)   (1,878)
   Other cash paid for financing activities   (9,375)   (8,574)   (4,584)   (4,011)
                        
   Sub-total of cash outflow from financing activities   (66,965)   (110,990)   (58,735)   (95,432)
                        
   Net cash flow from financing activities   5,007    (3,369)   7,584    8,021 
                        
4.  Effect of changes in exchange rate on cash and cash equivalents   5    105    (10)   96 
                        
5.  Net increase in cash and cash equivalents   2,636    (7,753)   2,930    (7,084)
   Add: Balance of cash and cash equivalents at the beginning of the period/year   1,695    9,080    976    8,042 
                        
6.  Balance of cash and cash equivalents at the end of the period/year   4,331    1,327    3,906    958 

 

Legal representative: Liu Shaoyong

Officer-in-charge of accounting: Ma Xulun

Officer-in-charge of the accounting department: Wu Yongliang

 

– 24