0001193125-18-309764.txt : 20181029 0001193125-18-309764.hdr.sgml : 20181029 20181029060908 ACCESSION NUMBER: 0001193125-18-309764 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20181029 FILED AS OF DATE: 20181029 DATE AS OF CHANGE: 20181029 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CHINA EASTERN AIRLINES CORP LTD CENTRAL INDEX KEY: 0001030475 STANDARD INDUSTRIAL CLASSIFICATION: AIR TRANSPORTATION, SCHEDULED [4512] IRS NUMBER: 000000000 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 6-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-14550 FILM NUMBER: 181142725 BUSINESS ADDRESS: STREET 1: BOARD SECRETARIAT'S OFFICE STREET 2: KONG GANG SAN LU, NUMBER 88, CITY: SHANGHAI, STATE: F4 ZIP: 200335 BUSINESS PHONE: (8621) 6268-6268 MAIL ADDRESS: STREET 1: BOARD SECRETARIAT'S OFFICE STREET 2: KONG GANG SAN LU, NUMBER 88, CITY: SHANGHAI, STATE: F4 ZIP: 200335 6-K 1 d641316d6k.htm FORM 6-K Form 6-K

 

 

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 2018

Commission File Number: 001-14550

 

 

China Eastern Airlines Corporation Limited

(Translation of Registrant’s name into English)

 

 

Board Secretariat’s Office

5/F, Block A2, Northern District, CEA Building

36 Hongxiang 3rd Road, Minhang District

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:  ☒ 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   ☒ 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 29, 2018            

    

By

 

  

/s/ Wang Jian

        Name: Wang Jian
        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.

 

3

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.

 

LOGO

2018 THIRD QUARTERLY REPORT

 

 

This announcement is made pursuant to the requirements under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) and Rule 13.09 and Rule 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

The financial statements of the Company for the third quarter of 2018 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 simultaneously 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 2018 were not audited, and were prepared in accordance with the China Accounting Standards for Business Enterprises.

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.

 

1

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  
     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

      239,615        227,464        5.34  

Net assets attributable to shareholders of the listed company

      57,909        53,106        9.04  

 

    

From the
beginning of the

year to the end

of the reporting
period
(January-September)

     

From the
beginning of

last year to the end
of the reporting
period last year
(January-September)

      Increase/ decrease
compared with
the same period
last year		  
                   (%)  

Net cash flows from operating activities

      21,072        14,528        45.04  

 

2

    

From the

beginning of the

year to the end

of the reporting

period
(January-September)

     

From the

beginning of

last year to the end
of the reporting
period last year
(January-September)

     

Increase/decrease
compared with

the same period

last year

  
                   (%)  

Revenue

      87,878        77,505        13.38  

Net profit attributable to shareholders of the listed company

      4,490        7,915        -43.27  

Net profit attributable to shareholders of the listed company after deducting non-recurring profit and loss

      4,230        5,649        -25.12  

Weighted average return on net assets(%)

      8.00        15.45        Decreased by 7.45 pts  

Basic earnings per share (RMB/share)

      0.31        0.55        -43.64  

Diluted earnings per share (RMB/share)

      0.31        0.55        -43.64  

Non-recurring profit and loss and relevant amounts

 

     Unit: million Currency: RMB  
Item    Amount for the
period
(July-September)		      Amount from the
beginning of the year
to the end of the
reporting period
(January-September)		  

Gains or losses from disposal of non-current assets

      34        24  

Investment income derived from the holding of financial assets held for trading, gains and losses arising from changes in fair value of financial liabilities held for trading and disposal of financial assets held for trading, financial liabilities held for trading and available-for-sale financial assets (excluding the effective hedging activities related to the normal operation of the Company)

      0        -30  

Reverse of the provision for impairment of receivables individually tested for impairment

      0        5  

Other non-operating income and expenses other than aforesaid items

      103        377  

Impact on minority interests (after tax)

      -2        -24  

Impact on the income tax

      -39        -92  
  

 

 

     

 

 

  

Total

      96        260  
  

 

 

     

 

 

  

 

3

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

 

     Unit: Shares  

Total number of shareholders

      209,255  

 

Shareholding of the 10 largest shareholders
Name of shareholder (in full)   

Shareholdings
as at the end

of the period

      Proportion     Number of
shares with
trading
moratorium
held		      Pledged or locked-up      Nature of
shareholders
            (%)            Status of
shares		      Number of
shares		       

China Eastern Air Holding Company Limited (“CEA Holding”) (中國東方航空集團有限公司)

      5,072,922,927        35.06 %      0        Nil        0      State-owned legal person

HKSCC NOMINEES LIMITED

      4,183,671,259        28.92 %      0        Unknown        Unknown     

Overseas

legal person

China National Aviation Fuel Holding Company Limited (中國航空油料集團有限公司)

      504,767,895        3.49 %      0        Nil        0      State-owned legal person

DELTA AIR LINES INC

      465,910,000        3.22 %      0        Nil        0      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 %      0        Pledged        465,838,509     

Domestic non-state-owned

legal person

CES Finance Holding Co., Ltd. (“CES Finance”) ( 東航金控有限責任公司)

      457,317,073        3.16 %      0        Nil        0      State-owned legal person

China Securities Finance Corporation Limited (中國證券金融股份有限公司)

      428,713,382        2.96 %      0        Nil        0      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 %      0        Nil        0      State-owned legal person

Central Huijin Asset Management Ltd. ( 中央匯金資產管理有限責任公司)

      70,984,100        0.49 %      0        Nil        0      State-owned legal person

Dacheng Fund — Agricultural Bank — Dacheng China Securities and Financial Assets Management Program

      65,946,480        0.46 %      0        Nil        0      State-owned legal person

 

4

Shareholding of the 10 largest holders of shares without trading moratorium  
Name of shareholder    Number of listed
shares without trading
moratorium held		     

Class and number of shares

Class

    Number  

CEA Holding (中國東方航空集團有限公司)

      5,072,922,927      RMB ordinary shares      5,072,922,927  

HKSCC NOMINEES LIMITED

      4,183,671,259      Overseas listed foreign shares      4,183,671,259  

China National Aviation Fuel Holding Company Limited (中國航空油料集團有限公司)

      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 (東航金控有限責任公司)

      457,317,073      RMB ordinary shares      457,317,073  

China Securities Finance Corporation Limited (中國證券金融股份有限公司)

      428,713,382      RMB ordinary shares      428,713,382  

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. ( 中央匯金資產管理有限責任公司)

      70,984,100      RMB ordinary shares      70,984,100  

Dacheng Fund — Agricultural Bank — Dacheng China Securities and Financial Assets Management Program

      65,946,480      RMB ordinary shares      65,946,480  

Description of connected relationship or activities in concert among the above shareholders

     







 Among the 4,183,671,259 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.		  
 
 
 
 
 
 
 
 

As at the end of the reporting period, CES Global has pledged an aggregate of 1.45 billion H Shares of the Company.

 

5

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

Pursuant to the notice regarding the “Accounting Standards for Business Enterprises No. 14 — Revenue”, “Accounting Standards for Business Enterprises No. 22 — Recognition and Measurement of Financial Instruments”, “Accounting Standards for Business Enterprises No. 23 — Transfer of Financial Assets”, “Accounting Standards for Business Enterprises No. 24 — Hedge Accounting”, “Accounting Standards for Business Enterprises No. 37 — Presentation of Financial Instruments” amended and published by the Ministry of Finance, the Company has applied the above revised Accounting Standards for Business Enterprises since 1 January 2018. In respect of the cumulative effect of initial application of the above standards, the Company adjusted the retained profit and other comprehensive income at the beginning of the reporting period of 2018, and the shareholder’s equity at the beginning of the reporting period increased to 1,031 million.

 

Item  

Change as

compared to

January —

September

of last year

     Reason for the Change

Finance costs

     357.04 %    Primarily due to the appreciation of US dollar against RMB, resulting in exchange losses of RMB2.157 billion from January to September in 2018, realizing exchange gains of RMB1.298 billion during the same period

Investment income

     -91.28 %    Primarily due to the transfer of 100% equity interest in Eastern Airline Logistics Co., Limited by the Company to Eastern Airlines Industry Investment Company Limited in 2017, realizing investment income of RMB1.754 billion

Non-operating income

     -42.84 %    Primarily due to the Company’s transfer of amount of expired sales for which performance obligation is no longer existed, from non-operating income to operating income pursuant to the implementation of the revised “Accounting Standards for Business Enterprises No. 14 — Revenue”.

Net cash flows from operating activities

     45.04 %    Primarily due to the year-on-year increase of operating income arising from the year-on-year increase of revenue.

 

6

Item   Change as
compared to
January —
September
of last year		     Reason for the Change

Net cash flows from financing activities

     -272.26 %    Primarily due to the increase of net cash flows from operating activities, reducing the need for financing
Item   Change as
compared to
31 December
2017		     Reason for the change

Prepayments

     68.62 %    Primarily due to the increase in prepayment of aircraft operating lease rentals

Other receivable

     72.88 %    Primarily due to the increase in export refund receivables

Available-for-sale financial assets

     -100.00 %    Primarily due to the application of the revision of “Accounting Standards for Business Enterprises No. 22 — Recognition and Measurement of Financial Instruments” and “Accounting Standards for Business Enterprises No. 37 — Presentation of Financial Instruments” by the Company, measuring financial assets at fair values, and reclassifying to other equity instruments investments

Other equity instruments investments

     —    

Hedge instrument

     135.76 %    Primarily due to the settlement of certain foreign exchange contracts held by the Company

Account collected in advance

     -97.99 %    Primarily due to the application of the revised “Accounting Standards for Business Enterprises No. 14 — Revenue” by the Company, recognizing the unused tickets sold as contract liabilities

Settlement of vouchers

     -100.00 % 

Contract liabilities

     —      

Short-term borrowings

     -48.18 %    Primarily due to the adjustment in debt structure by the Company, decreasing short-term liabilities and increasing long-term liabilities

Long-term borrowings

     58.57 % 

Deferred income tax liabilities

     1577.78 %    Primarily due to the application of each of the revised accounting standards, adjusting the opening balance of the period retrospectively and adjusting deferred income tax

 

7

  3.2

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

 

  (1)

The non-public issuance of A Shares and H Shares by the Company

On 10 July 2018, the related matters of this non-public issuance of A Shares and non-public issuance of H Shares were approved at the fifteenth ordinary meeting of the eighth session of the Board. The Company intends to non-publicly issue A Shares to Juneyao Airlines Co., Ltd. (“Juneyao Airlines”), and its controlling shareholder Juneyao (Group) Co., Ltd. (“Juneyao Group”) and/or its designated controlled subsidiaries and China Structural Reform Fund Corporation Limited for proceed of not more than RMB11.8 billion (inclusive); the Company intends to non-publicly issue H Shares to Juneyao Airlines and/or its designated controlled subsidiaries for proceed of not more than HK$3.5503 billion (inclusive). The Company received the approval from State-owned Assets Supervision and Administration Commission of the State Council (“SASAC”) on 25 August 2018, SASAC agreed in principle on this non-public issuance of A Shares and H Shares proposal of the Company. On 30 August 2018, the relevant resolutions were considered and approved at the 2018 third extraordinary general meeting, 2018 first A Share class meeting and 2018 first H Share class meeting of the Company. On the same date, the resolution for the clarification and specification of subscribers of A Shares regarding the non-public issuance of A Shares by the Company in 2018 was considered and approved at the 2018 fourth regular meeting of the Board. On 18 October 2018, the resolution for the clarification and specification of subscribers of H Shares regarding the non-public issuance of H Shares by the Company in 2018 was considered and approved at the seventeenth ordinary meeting of the eighth session of the Board. For details, please refer to the announcements of the Company published on the websites of Shanghai Stock Exchange and Hong Kong Stock Exchange on 10 July, 29 August, 30 August and 18 October 2018. The non-public issuance proposal is still pending approval by regulatory authorities including the Civil Aviation Administration of China (if required) and/or East China Regional Administration of the Civil Aviation Administration of China and China Securities Regulatory Commission.

 

  (2)

Amendments to certain provisions of the articles of association of the Company

On 30 August 2018, the 2018 third extraordinary general meeting of the Company considered and approved the resolution regarding the amendments to certain provisions of the articles of association of the Company, the rules for the meetings of the Board and the rules for the meeting of the supervisory committee of the Company. For details, please refer to the announcement of the Company published on the websites of Shanghai Stock Exchange and Hong Kong Stock Exchange on 30 August 2018.

 

8

  (3)

Adjustments to the directors, supervisors and senior management of the Company

According to the unified deployment and arrangement of the Company’s comprehensive deepened reform, certain directors and supervisors resigned from the positions as directors and supervisors of the Company. On 30 August 2018, independent directors, shareholder representative supervisors, employee representatives supervisors and chief legal adviser of the Company were elected at the 2018 third extraordinary general meeting, the 2018 third leader joint meeting of the sixth employee representatives and the 2018 fourth regular meeting of the Board, respectively. For details, please refer to the announcements of the Company published on the websites of Shanghai Stock Exchange and Hong Kong Stock Exchange on 8 August and 30 August 2018.

 

  3.3

Failure in performance of undertakings during the reporting period

As at the end of the reporting period, the undertakings of the Company have been fully fulfilled.

 

  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
Liu Shaoyong
Chairman
Shanghai, the People’s Republic of China
26 October 2018

As at the date of this announcement, the directors of the Company include Liu Shaoyong (Chairman), Ma Xulun (Vice Chairman, President), Lin Wanli (Independent non-executive Director), Li Ruoshan (Independent non-executive Director), Ma Weihua (Independent non-executive Director), Shao Ruiqing (Independent non-executive Director), Cai Hongping (Independent nonexecutive Director) and Yuan Jun (Employee Representative Director).

 

9

4.

APPENDICES

 

  4.1   Financial Statements

 

         China Eastern Airlines Corporation Limited

 

  Consolidated   and Company’s Balance Sheet as at 30 September 2018

 

  RMB   million

 

     30 September
2018
Consolidated		      31 December
2017
Consolidated		      30 September
2018
Company		      31 December
2017
Company		  

Asset

            

Current asset

            

Monetary capital

      3,789        4,656        3,271        3,914  

Derivative financial assets

      93        —          93        —    

Bills receivable and trade receivable

      2,163        2,124        1,630        2,812  

Prepayments

      978        580        306        180  

Other receivables

      8,397        4,857        11,742        15,639  

Inventory

      2,287        2,185        31        38  

Held for sale assets

      —          14        —          —    

Non-current assets due within one year

      48        76        38        69  

Other current assets

      3,243        3,801        3,187        3,608  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total current assets

      20,998        18,293        20,298        26,260  
  

 

 

     

 

 

     

 

 

     

 

 

  

Non-current assets

            

Available for sale financial assets

      —          800        —          713  

Hedge instruments

      356        151        356        151  

Long-term equity investment

      2,342        2,211        15,254        15,104  

Other equity instruments investments

      1,562        —          1,467        —    

Investment properties

      287        302        18        27  

Fixed assets

      171,878        163,130        109,183        106,058  

Construction in progress

      28,096        28,780        27,321        28,077  

Intangible assets

      1,999        2,043        1,330        1,358  

Goodwill

      9,028        9,028        9,028        9,028  

Long-term deferred expenses

      1,659        1,543        1,307        1,308  

Deferred income tax assets

      112        122        —          45  

Other non-current assets

      1,298        1,061        1,167        949  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total non-current assets

      218,617        209,171        166,431        162,818  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total assets

      239,615        227,464        186,729        189,078  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

10

  4.1   Financial Statements (Cont’d)

 

         China Eastern Airlines Corporation Limited

 

  Consolidated   and Company’s Balance Sheet as at 30 September 2018 (Cont’d)

 

  RMB   million

 

     30 September
2018
Consolidated		      31 December
2017
Consolidated		      30 September
2018
Company		      31 December
2017
Company		  

Liabilities and shareholders’ equity

            

Current liabilities

            

Short-term borrowings

      12,935        24,959        21,464        27,202  

Hedge instruments

      43        324        43        324  

Notes payable and trade payable

      13,203        12,209        9,641        11,169  

Account collected in advance

      27        1,342        17        1,036  

Settlement of vouchers

      —          7,043        —          6,869  

Contract liabilities

      8,813        —          8,051        —    

Staff remuneration payable

      2,645        3,034        1,934        2,007  

Tax payable

      1,966        2,076        789        944  

Other payables

      5,294        3,939        8,340        11,884  

Held for sale liabilities

      —          8        —          —    

Non-current liabilities due within one year

      20,058        15,391        13,195        9,153  

Other current liabilities

      12,000        10,000        12,000        10,000  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total current liabilities

      76,984        80,325        75,474        80,588  
  

 

 

     

 

 

     

 

 

     

 

 

  

Non-current liabilities

            

Long-term borrowings

      7,808        4,924        4,391        4,338  

Hedge instruments

      —          1        —          1  

Bonds payable

      17,318        19,787        14,808        17,352  

Long-term payables

      67,211        58,791        41,874        38,740  

Long-term staff remuneration payable

      2,842        2,800        2,241        2,199  

Expected liabilities

      2,365        2,038        580        496  

Deferred income

      134        144        119        129  

Deferred income tax liabilities

      302        18        298        —    

Other non-current liabilities

      2,935        2,118        1,914        1,242  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total non-current liabilities

      100,915        90,621        66,225        64,497  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total liabilities

      177,899        170,946        141,699        145,085  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

11

  4.1   Financial Statements (Cont’d)

 

         China Eastern Airlines Corporation Limited

 

  Consolidated   and Company’s Balance Sheet as at 30 September 2018 (Cont’d)

 

  RMB   million

 

     30 September
2018
Consolidated		      31 December
2017
Consolidated		      30 September
2018
Company		     

31 December

2017
Company

  

Liabilities and shareholders’ equity

            

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

      -1,850        -2,540        -1,194        -1,909  

Surplus reserves

      540        540        540        540  

Undistributed profits

      17,992        13,879        3,747        3,425  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total equity attributable to shareholders of the parent company

      57,909        53,106        45,030        43,993  

Minority interests

      3,807        3,412        
  

 

 

     

 

 

        

Total shareholders’ equity

      61,716        56,518        45,030        43,993  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total liabilities and shareholders’ equity

      239,615        227,464        186,729        189,078  
  

 

 

     

 

 

     

 

 

     

 

 

  

The financial statements are signed by:

Legal representative: Liu Shaoyong

Officer-in-charge of accounting: Ma Xulun

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

 

12

  4.1   Financial Statements (Cont’d)

 

         China Eastern Airlines Corporation Limited

 

         Consolidated and Company’s Income Statement

 

         For the nine months ended 30 September 2018

 

         RMB million

 

   

Jul to Sep

2018

Consolidated

    

Jul to Sep

2017

Consolidated

     Jan to Sep
2018
Consolidated		     Jan to Sep
2017
Consolidated		    

Jul to Sep

2018
Company

    

Jul to Sep

2017
Company

    

Jan to Sep

2018
Company

    

Jan to Sep

2017
Company

  

Revenue

     33,456       29,485       87,878       77,505       19,879       17,573       52,074       45,793  

Less: Operating costs

     26,630       23,022       74,419       65,643       16,202       14,201       45,447       39,753  

Business tax and surcharges

     113       62       275       197       51       14       117       54  

Selling expenses

     1,600       1,535       4,467       4,196       1,179       1,147       3,272       3,104  

Administrative expenses

     803       767       2,209       2,060       505       492       1,436       1,279  

Research and development expenses

     20       23       62       69       20       19       61       57  

Finance expenses

     2,550       322       5,032       1,101       1,993       225       4,026       951  

Including: Interest expenses

     892       927       2,762       2,331       342       354       994       830  

Interest income

     15       41       67       70       13       90       62       115  

Assets impairment loss

     —         7       4       16       —         7       —         7  

Credit impairment loss

     —         —         2       —         —         —         1       —    

Add: Other income

     1,050       975       3,865       3,714       534       550       2,193       2,262  

Investment gains

     85       91       175       2,006       178       153       286       1,141  

Including: Investment gains in associates and joint ventures

     64       68       149       212       64       68       167       213  

Gains arising from changes in fair value

     38       —         281       —         38       —         281       —    

Gains from disposal of assets

     36       —         30       —         —         —         2       —    
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Operating profit

     2,949       4,813       5,759       9,943       679       2,171       476       3,991  

Add: Non-operating income

     218       368       587       1,027       188       296       467       889  

Less: Non-operating expenses

     29       25       37       35       20       24       26       28  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total profits

     3,138       5,156       6,309       10,935       847       2,443       917       4,852  

Less: Income tax expenses

     706       1,287       1,371       2,439       222       645       197       1,196  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net profit

     2,432       3,869       4,938       8,496       625       1,798       720       3,656  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Classification according to the continuity of operation

                

Continuous operation net profit

     2,432       3,869       4,938       8,496          

Discontinued operation net profit

     —         —         —         —            

Classification according to ownership

                

Net profit attributable to shareholders of the parent company

     2,207       3,568       4,490       7,915          

Profit or loss of minority interests

     225       301       448       581          

 

13

  4.1   Financial Statements (Cont’d)

 

         China Eastern Airlines Corporation Limited

 

         Consolidated and Company’s Income Statement (Cont’d)

 

         For the nine months ended 30 September 2018

 

         RMB million

 

    

Jul to Sep

2018

Consolidated

    

Jul to Sep

2017

Consolidated

    

Jan to Sep

2018

Consolidated

    

Jan to Sep

2017

Consolidated

    

Jul to Sep

2018

Company

    

Jul to Sep

2017

Company

    

Jan to Sep

2018

Company

    

Jan to Sep

2017

Company

  

Other comprehensive income, net of tax

                 

Other comprehensive income that cannot be reclassified into profit or loss

                 

Changes arising from re-measuring defined benefit plan

      35       181       (91 )      365       26       181       (64 )      332  

Other comprehensive income that cannot be reclassified to profit or loss under the equity method

      (3 )      —         (19 )      9       (3 )      —         (19 )      9  

Fair value changes of other equity instruments investments

      —         —         (7 )      33       —         —         (6 )      17  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Other comprehensive income that will be reclassified into profit or loss

                 

Other comprehensive income that can be reclassified to profit or loss under the equity method

      —         4       —         —         —         4       —         —    

Fair value changes of available-or-sale financial assets

      —         (66 )      —         —         —         (66 )      —         —    

Cash flow hedge reserves

      30       (104 )      140       (241 )      30       (104 )      140       (207 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Other comprehensive income, net of tax

                 

Including:

                 

Other comprehensive income, net of tax, attributable to shareholders of the parent company

      62       15       23       160          
  

 

 

    

 

 

    

 

 

    

 

 

          

Other comprehensive income, net of tax, attributable to minority interests

      —         —         —         6          
  

 

 

    

 

 

    

 

 

    

 

 

          

Total comprehensive income

      2,494       3,884       4,961       8,662          
  

 

 

    

 

 

    

 

 

    

 

 

          

Including:

                 

Total comprehensive income attributable to shareholders of the parent company

      2,269       3,583       4,513       8,075          
  

 

 

    

 

 

    

 

 

    

 

 

          

Total comprehensive income attributable to minority interests

      225       301       448       587          
  

 

 

    

 

 

    

 

 

    

 

 

          

Earnings per share

                 

Basic earnings per share (RMB)

      0.15       0.25       0.31       0.55          
  

 

 

    

 

 

    

 

 

    

 

 

          

Diluted earnings per share (RMB)

      0.15       0.25       0.31       0.55          
  

 

 

    

 

 

    

 

 

    

 

 

          

 

14

  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 2018 (Unaudited)

 

         RMB million

 

     January to
September
2018
Consolidated		     January to
September
2017
Consolidated		     January to
September
2018
Company		     January to
September
2017
Company		  

1. Cash flow from operating activities

         

Cash received from sales of goods and provision of labour services

      96,324       81,236       66,372       50,622  

Tax refund received

      39       123       25       60  

Other cash received from operating activities

      9,356       9,862       8,987       9,592  
  

 

 

    

 

 

    

 

 

    

 

 

  

Sub-total of cash inflow from operating activities

      105,719       91,221       75,384       60,274  
  

 

 

    

 

 

    

 

 

    

 

 

  

Cash paid for purchase of goods and receiving of labour services

      (60,427 )      (52,754 )      (45,877 )      (35,501 ) 

Cash paid to and for employees

      (14,547 )      (14,038 )      (7,739 )      (7,001 ) 

Taxes paid

      (4,153 )      (4,014 )      (1,353 )      (2,124 ) 

Other cash paid for operating activities

      (5,520 )      (5,887 )      (6,852 )      (5,293 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Sub-total of cash outflow from operating activities

      (84,647 )      (76,693 )      (61,821 )      (49,919 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net cash flows from operating activities

      21,072       14,528       13,563       10,355  
  

 

 

    

 

 

    

 

 

    

 

 

  

 

15

  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 2018 (Cont’d) (Unaudited)

 

         RMB million

 

          January to
September
2018
Consolidated		     January to
September
2017
Consolidated		     January to
September
2018
Company		     January to
September
2017
Company		  
2.   

Cash flow from investing activities

         
  

Cash received from disposal of investment

      —         12       —         266  
  

Investment income in cash

      71       70       167       173  
  

Net cash recovered from disposals of fixed assets, intangible assets and other long-term assets

      789       224       360       115  
  

Net cash received from disposal of subsidiaries and other operating unit

      (11 )      1,897       —         2,433  
  

Other cash received from investing activities

      741       70       736       115  
     

 

 

    

 

 

    

 

 

    

 

 

  
  

Sub-total of cash inflow from investing activities

      1,590       2,273       1,263       3,102  
     

 

 

    

 

 

    

 

 

    

 

 

  
  

Amount paid in cash in relation to purchases of fixed assets, intangible assets and other long-term assets

      (14,910 )      (19,140 )      (12,890 )      (17,818 ) 
  

Investments paid in cash

      (16 )      (33 )      (16 )      (283 ) 
  

Other cash paid for investing activities

      (22 )      (4 )      —         —    
     

 

 

    

 

 

    

 

 

    

 

 

  
  

Sub-total of cash outflow from investing activities

      (14,948 )      (19,177 )      (12,906 )      (18,101 ) 
     

 

 

    

 

 

    

 

 

    

 

 

  
  

Net cash flow from investing activities

      (13,358 )      (16,904 )      (11,643 )      (14,999 ) 
     

 

 

    

 

 

    

 

 

    

 

 

  
3.   

Cash flow from financing activities

         
  

Cash received from borrowings

      53,859       71,972       54,309       66,319  
     

 

 

    

 

 

    

 

 

    

 

 

  
  

Sub-total of cash inflow from financing activities

      53,859       71,972       54,309       66,319  
     

 

 

    

 

 

    

 

 

    

 

 

  
  

Cash paid for repayment of indebtedness

      (51,788 )      (54,639 )      (48,939 )      (51,846 ) 
  

Cash payments for distribution of dividends, profits or payments of interest expense

      (3,792 )      (2,951 )      (3,185 )      (2,305 ) 
  

Other cash paid for financing activities

      (6,904 )      (9,375 )      (4,736 )      (4,584 ) 
     

 

 

    

 

 

    

 

 

    

 

 

  

 

16

  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 2018 (Cont’d) (Unaudited)

 

         RMB million

 

          January to
September
2018
Consolidated		     January to
September
2017
Consolidated		     January to
September
2018
Company		     January to
September
2017
Company		  
  

Sub-total of cash outflow from financing activities

      (62,484 )      (66,965 )      (56,860 )      (58,735 ) 
     

 

 

    

 

 

    

 

 

    

 

 

  
  

Net cash flow from financing activities

      (8,625 )      5,007       (2,551 )      7,584  
     

 

 

    

 

 

    

 

 

    

 

 

  
4.    Effect of changes in exchange rate on cash and cash equivalents      45       5       1       (10 ) 
     

 

 

    

 

 

    

 

 

    

 

 

  
5.    Net increase in cash and cash equivalents      (866 )      2,636       (630 )      2,930  
   Add: Balance of cash and cash equivalents at the beginning of the period      4,616       1,695       3,882       976  
     

 

 

    

 

 

    

 

 

    

 

 

  
6.    Balance of cash and cash equivalents at the end of the year      3,750       4,331       3,252       3,906  
     

 

 

    

 

 

    

 

 

    

 

 

  

 

17

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