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
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(Translation of Registrant’s name into English)
Board Secretariat’s Office
Kong Gang San Lu, Number 88
Shanghai, China 200335
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(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 |
2.1 | Main 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 |
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2.2 | The 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 | % | – | Pledged | Note | 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. |
2.3 | The 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 |
3.1 | Details 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 |
3.2 | Analysis 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.
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(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.
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(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 –
3.3 | The 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 |
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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 –
3.4 | Warning 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 |
4.1 | Financial 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 –
4.1 | Financial 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 –
4.1 | Financial 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 –
4.1 | Financial 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 –
4.1 | Financial 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 –
4.1 | Financial 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 –
4.1 | Financial 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 –
4.1 | Financial 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 –
4.1 | Financial 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 –