6-K 1 d180220d6k.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 April 2021

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  

April 30, 2021

     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

2021 FIRST 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 first quarter of 2021 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 Rules Governing the Listing of Stocks on the Shanghai Stock Exchange and relevant 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 first quarter of 2021 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.

 

4

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, Li Yangmin, the officer-in-charge of accounting of the Company, and Zhou Qimin, 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 first quarterly report of the Company are unaudited.

 

5

2.

BASIC INFORMATION OF THE COMPANY

 

  2.1

Main financial data

 

Unit: million Currency: RMB

 

Item    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

      292,115        282,408        3.44  

Net assets attributable to shareholders of the listed company

      49,918        54,007        -7.57  
Item    From the
beginning of the
year to the end
of the reporting
period		      From the
beginning of last
year to the end
of the reporting
period last year		     

Increase/

decrease

compared

with the same

period last year

(%)

  

Net cash flows from operating activities

      313        -6,126        N/A  
Item    From the
beginning of the
year to the end
of the reporting
period		      From the
beginning of last
year to the end
of the reporting
period last year		     

Increase/

decrease

compared

with the same

period last year

(%)

  

Revenue

      13,395        15,454        -13.32  

Net profit attributable to shareholders of the listed company

      -3,805        -3,933        N/A  

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

      -4,148        -4,046        N/A  

Weighted average return on net assets (%)

      -7.33        -6.08        Decreased by 1.25 pt  

Basic earnings per share (RMB/share)

      -0.2323        -0.2401        N/A  

Diluted earnings per share (RMB/share)

      -0.2323        -0.2401        N/A  

 

6

Non-recurring profit and loss and relevant amounts

 

Unit: million Currency: RMB

 

Item    Amount for
the period		  

Net gains from disposal of non-current assets

      -2  

Changes in fair value arising from financial assets/ liabilities held for trading

      12  

Non-operating net incomes and expenses

      29  

Net incomes and expenses other than the above

      398  

Effect on income tax

      -92  

Effect on minority interests (after tax)

      -2  
  

 

 

  

Total

      343  
  

 

 

  

 

7

  2.2

The total number of 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

      195,107  

Shareholding of the 10 largest shareholders

 

                          Pledged or locked-up       
Name of shareholder (in full)    Shareholdings
as at the end
of the period		     

Proportion

(%)

      Number of shares
with trading
moratorium held		      Status of
shares		     

Number of

shares

      Nature of
shareholders

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

      5,072,922,927        30.97        0        None        0      State-owned legal person

HKSCC Nominees Limited

      4,701,425,905        28.70        517,677,777        Unknown        Unknown      Overseas legal person

Shanghai Jidaohang Enterprise Management Company Limited (上海吉道航企業管理有限公司)

      589,041,096        3.60        589,041,096        None        0      Domestic non-state- owned legal person

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

      502,767,895        3.07        0        None        0      State-owned legal person

Delta Air Lines, Inc.

      465,910,000        2.84        0        None        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        2.84        0        Pledged        285,838,509      Domestic non-state- owned legal person

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

      457,317,073        2.79        0        None        0      State-owned legal person

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

      429,673,382        2.62        0        None        0      State-owned legal person

Shanghai Juneyao (Group) Co., Ltd. (上海均瑤 (集團) 有限公司)

      311,831,909        1.90        311,831,909        Pledged        311,831,909      Domestic non-state- owned legal person

China Structural Reform Fund Corporation Limited (中國國有企業結構調整基金股份有限公司)

      273,972,602        1.67        273,972,602        None        0      State-owned legal person

 

8

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  

China Eastern Air Holding Company Limited
( 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

      4,183,748,128      Overseas listed foreign shares      4,183,748,128  

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

      502,767,895      RMB ordinary shares      502,767,895  

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

      429,673,382      RMB ordinary shares      429,673,382  

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  

Hong Kong Securities Clearing Company Limited
( 香港中央結算有限公司 )

      158,923,224      RMB ordinary shares      158,923,224  

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  

 

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

Among the 4,701,425,905 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. China Eastern Air Holding Company Limited (“CEA Holding”) owns 100% equity interest in CES Finance Holding Co., Ltd. (“CES Finance”). CES Finance owns 100% equity interest in CES Global. Thus, CEA Holding directly or indirectly holds 8,156,480,000 shares of the Company, representing 49.80% of the total share capital of the Company.

 

Among the 4,701,425,905 shares held by HKSCC Nominees Limited, 546,769,777 shares are held by Shanghai Juneyao Airline Hong Kong Limited (“Juneyao Hong Kong”) in the capacity of beneficial owner. Shanghai Juneyao (Group) Co., Ltd. (“Juneyao Group”) is the controlling shareholder of Juneyao Airlines Co., Ltd. (“Juneyao Airlines”), and Juneyao Airlines owns 100% equity interest in Shanghai Jidaohang Enterprise Management Company Limited and Juneyao Hong Kong. Thus, Juneyao Group directly or indirectly holds 1,679,042,919 shares of the Company, representing 10.25% of the total share capital of the Company.

 

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 in aggregate 1,450,000,000 H shares of the Company; and Juneyao Hong Kong has pledged in aggregate 232,000,000 H shares of the Company.

 

9

  2.3

The total number of preferred shareholders and the shareholding of the 10 largest preferred shareholders and the shareholding of the 10 largest holders of preferred shares without trading moratorium as at the end of the reporting period

Not applicable

 

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

Since the beginning of 2020, the worldwide outbreak of the novel coronavirus (COVID-19) pandemic (“COVID-19”) caused a significant impact on the global aviation industry. As the situation of COVID-19 prevention and control in China continued to steadily improve, passengers’ willingness to travel has increased and the demand for civil aviation passenger transportation in China has shown a trend of recovery. However, in the first quarter of 2021, the sporadic COVID-19 cases in certain areas of China posed certain adverse impact on the recovery of air travel demand. The global situation of COVID-19 is still severe, and China is still facing great pressure from prevention of imported cases of COVID-19. Passenger traffic volume of international routes has remained at a low level.

Under a complex operating environment, the Company closely followed the changes in market demand, timely adjusted its operating strategies, implemented strict cost control measures, and strived to overcome the adverse impact brought by COVID-19. In the first quarter of 2021, the Company’s total traffic volume amounted to 2,996 million tonne-kilometres, representing a year-on-year increase of 14.86%; number of passengers carried amounted to 17,635,500, representing a year-on-year increase of 28.56%; revenue amounted to RMB13,395 million; net profit attributable to shareholders of the parent company amounted to RMB-3,805 million, representing a reduction of loss in the amount of RMB128 million compared to the corresponding period of last year; net cash and cash equivalents at the end of the period amounted to RMB15,693 million; and the production and operation and cash flows remained stable.

 

10

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

 

Item    Change
compared
to the end
of last year
(%)		      Reason for the change

Monetary capital

      104.95      Primarily due to the fact that the Company conducted research and made judgement on the future operation and reserved capital for the subsequent payments based on the external capital market situation.

Hedge instruments

      -70.99      Primarily due to the changes in fair value of hedge contracts.

Trade receivables

      53.91      Primarily due to the increase in unsettled balance of air ticket payments at the end of the reporting period.

Intangible assets

      40.53      Primarily due to the increase in land use right assets of a subsidiary of the Company.

Staff remuneration payable

      -33.05      Primarily due to payment of staff remuneration and contribution to social insurance during the reporting period.

Other current liabilities

      -54.27      Primarily due to the fact that the Company adjusted the financing structure according to the situation of the financial market and reduced the issuance of super short-term debentures.

Long-term borrowings

      132.82      Primarily due to the fact that the Company adjusted the financing structure according to the situation of the financial market and increased long-term borrowings.

Bonds payable

      50.86      Primarily due to the fact that the Company issued corporate bonds in the amount of RMB9 billion according to the situation of the financial market during the reporting period.

Undistributed profits

      -74.84      Primarily due to the loss for the period as affected by COVID-19.

 

11

Item    Change
compared
to the end
of last year
(%)		      Reason for the change

Finance costs

      -42.61      Primarily due to the foreign exchange gains for the period as compared to the foreign exchange loss for the corresponding period of last year.

Gains arising from changes in fair value

      N/A      Primarily due to the fluctuations in prices of stocks held by the Company.

Investment gains

      N/A      Primarily due to the gains from disposal of subsidiaries of the Company.

Non-operating income

      -36.07      Primarily due to the decrease in tax and fee collections for passenger transportation business beyond the settlement period.

Net cash flows from operating activities

      N/A      Primarily due to the increase in ticket sales compared to the corresponding period of last year.

Net cash flows from investing activities

      65.07      Primarily due to the increase in aircraft prepayments compared to the corresponding period of last year.

 

  3.2

Analysis of the progress of important matters and their effects and proposed solutions

 

  (1)

On 2 February 2021, at the ninth ordinary meeting of the ninth session of the Board, the resolution on the non-public issuance of A shares of the Company was considered and approved, pursuant to which the Company proposed to non-publicly issue A shares to CEA Holding, its controlling shareholder, with proceeds of not more than RMB10,828 million. On 22 March 2021, the Company received the approval from CEA Holding for the non-public issuance of A shares, pursuant to which CEA Holding agreed in principle to the proposal of the non-public issuance of A shares. On 29 March 2021, at the 2021 first extraordinary general meeting, 2021 first class meeting of holders of A shares and 2021 first class meeting of holders of H shares of the Company, the relevant resolution was considered and approved. The proposal for the non-public issuance of A shares is still subject to the approval of the China Securities Regulatory Commission, the East China Regional Administration of the Civil Aviation Administration of China and other competent authorities. For details, please refer to the announcements of the Company published on the website of the Shanghai Stock Exchange and the website of the Hong Kong Stock Exchange on 2 February, 22 March and 29 March 2021.

 

12

  (2)

On 12 March 2021, the Company publicly issued the 2021 corporate bonds (first tranche) to professional investors, with a total issuance amount of RMB9 billion. For details, please refer to the announcements of the Company published on the website of the Shanghai Stock Exchange and the website of the Hong Kong Stock Exchange on 12 March 2021.

 

  3.3

Overdue commitments that have not yet been fulfilled during the reporting period

Not applicable

 

  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

COVID-19 has caused a significant impact on the global aviation industry. There remains great complexity and uncertainty as to the global situation of COVID-19. It is expected that the operating results of the Company in the first half of 2021 may still be adversely affected by COVID-19. Investors are reminded of the risks thereof.

The above description of the future situation of the Company is based on preliminary judgment under the current situation and involves certain uncertainties. Investors are reminded of the risks thereof. Shareholders and potential investors of the Company are advised to exercise caution when dealing in the securities of the Company.

 

By order of the Board
CHINA EASTERN AIRLINES CORPORATION LIMITED
Liu Shaoyong
Chairman
Shanghai, the People’s Republic of China
29 April 2021

As at the date of this announcement, the directors of the Company include Liu Shaoyong (Chairman), Li Yangmin (Vice Chairman, President), Tang Bing (Director), Shao Ruiqing (Independent non-executive Director), Cai Hongping (Independent non-executive Director), Dong Xuebo (Independent non-executive Director) and Jiang Jiang (Employee Representative Director).

 

13

4.

APPENDICES

 

  4.1

Financial Statements

China Eastern Airlines Corporation Limited

Consolidated and Company’s Balance Sheet as at 31 March 2021 (unaudited)

 

RMB million                            
Assets    31 March
2021
Consolidated		      31 December
2020
Consolidated		      31 March
2021
Company		      31 December
2020
Company		  

Current assets

            

Monetary capital

      15,705        7,663        15,605        7,572  

Held-for-trading financial assets

      107        95        107        95  

Hedge instruments

      105        362        105        362  

Notes receivables

      —          —          —          —    

Trade receivables

      1,730        1,124        1,336        846  

Prepayments

      89        123        24        67  

Other receivables

      2,687        2,476        30,052        28,659  

Inventory

      2,096        2,054        38        24  

Held-for-sale assets

      2        2        —          —    

Non-current assets due within one year

      7        11        —          —    

Other current assets

      8,669        8,588        7,633        7,625  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total current assets

      31,197        22,498        54,900        45,250  
  

 

 

     

 

 

     

 

 

     

 

 

  

Non-current assets

            

Long-term equity investment

      2,358        2,387        15,713        15,817  

Other equity instrument investments

      926        995        834        903  

Hedge instruments

      37        37        37        37  

Investment properties

      166        166        65        65  

Fixed assets

      96,707        97,681        62,767        63,685  

Construction in progress

      20,550        20,685        19,934        20,088  

Right-of-use assets

      117,111        116,842        74,567        73,612  

Intangible assets

      2,552        1,816        1,177        1,172  

Goodwill

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

Long-term deferred expenses

      2,294        2,412        1,890        1,997  

Deferred income tax assets

      6,456        5,011        3,441        2,497  

Other non-current assets

      2,733        2,850        2,988        3,017  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total non-current assets

      260,918        259,910        192,441        191,918  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total assets

      292,115        282,408        247,341        237,168  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

14

 

  4.1

Financial Statements (Cont’d)

China Eastern Airlines Corporation Limited

Consolidated and Company’s Balance Sheet as at 31 March 2021 (unaudited) (Cont’d)

 

 

RMB million                            
Liabilities and shareholders’ equity    31 March
2021
Consolidated		      31 December
2020
Consolidated		      31 March
2021
Company		      31 December
2020
Company		  

Current liabilities

            

Short-term borrowings

      27,600        21,966        39,038        32,586  

Hedge instruments

      105        3        105        3  

Notes payables

      721        610        721        610  

Trade payables

      12,874        12,281        10,853        10,021  

Account collected in advance

      26        20        3        3  

Contract liabilities

      3,863        3,671        3,527        3,231  

Staff remuneration payable

      2,548        3,806        1,820        2,559  

Tax payable

      1,460        1,401        526        478  

Other payables

      5,191        6,119        4,095        7,629  

Non-current liabilities due within one year

      19,856        23,181        13,831        17,149  

Other current liabilities

      12,232        26,750        12,199        26,699  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total current liabilities

      86,476        99,808        86,718        100,968  
  

 

 

     

 

 

     

 

 

     

 

 

  

Non-current liabilities

            

Long-term borrowings

      30,649        13,164        30,525        13,164  

Bonds payable

      26,523        17,581        24,794        15,794  

Hedge instruments

      138        138        138        138  

Lease liabilities

      81,935        82,178        52,858        52,309  

Long-term payables

      1,051        1,047        485        498  

Long-term staff remuneration payable

      2,733        2,582        2,149        2,028  

Estimated liabilities

      7,042        6,966        2,990        2,961  

Deferred income

      116        121        108        116  

Deferred income tax liabilities

      15        13        —          —    

Other non-current liabilities

      1,894        1,898        949        985  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total non-current liabilities

      152,096        125,688        114,996        87,993  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total liabilities

      238,572        225,496        201,714        188,961  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

15

 

  4.1

Financial Statements (Cont’d)

China Eastern Airlines Corporation Limited

Consolidated and Company’s Balance Sheet as at 31 March 2021 (unaudited) (Cont’d)

 

RMB million                            
Liabilities and shareholders’ equity    31 March
2021
Consolidated		      31 December
2020
Consolidated		      31 March
2021
Company		      31 December
2020
Company		  

Shareholders’ equity

            

Share capital

      16,379        16,379        16,379        16,379  

Capital reserves

      34,298        34,298        35,000        35,000  

Other comprehensive income

      (2,792 )       (2,368 )       (2,129 )       (1,705 ) 

Surplus reserves

      796        782        794        780  

Undistributed profits

      1,237        4,916        (4,417 )       (2,247 ) 
  

 

 

           

 

 

  

Total equity attributable to shareholders of the parent company

      49,918        54,007        45,627        48,207  
           

 

 

  

Minority interests

      3,625        2,905        —          —    
           

 

 

  

Total shareholders’ equity

      53,543        56,912        45,627        48,207  
           

 

 

  

Total liabilities and shareholders’ equity

      292,115        282,408        247,341        237,168  
  

 

 

     

 

 

     

 

 

     

 

 

  

The financial statements are signed by:

Legal representative: Liu Shaoyong

Officer-in-charge of accounting: Li Yangmin

Officer-in-charge of the accounting department: Zhou Qimin

 

16

 

  4.1

Financial Statements (Cont’d)

 

China Eastern Airlines Corporation Limited

Consolidated and Company’s Income Statement for the Period from January to March 2021 (unaudited)

 

RMB million                            
     Jan to Mar      Jan to Mar      Jan to Mar      Jan to Mar  
     2021      2020      2021      2020  
     Consolidated      Consolidated      Company      Company  

Revenue

      13,395        15,454        8,502        10,631  

Less: Operating costs

      17,835        18,546        10,836        11,807  

Taxes and surcharges

      37        46        11        22  

Selling expenses

      676        913        515        727  

Administrative expenses

      706        751        478        487  

Research and development expenses

      44        40        —          29  

Finance costs

      1,118        1,948        899        1,483  

Of which: Interest expenses

      1,313        1,354        1,065        1,057  

Interest income

      41        17        40        16  

Credit impairment loss

      —          —          —          —    

Add: Other gains

      1,301        1,130        449        574  

Investment gains

      84        (6 )       533        (6 ) 

Of which: Gains from investments in associates and joint ventures

      (9 )       (6 )       (9 )       (6 ) 

Gains/(Loss) arising from changes in fair value

      12        (22 )       12        (22 ) 

Gains from disposal of assets

      (1 )       —          (1 )       —    

Operating profit

      (5,625 )       (5,688 )       (3,244 )       (3,378 ) 

Add: Non-operating income

      39        61        10        36  

Less: Non-operating expenses

      6        1        5        1  
  

 

 

           

 

 

  

Total profits

      (5,592 )       (5,628 )       (3,239 )       (3,343 ) 

Less: Income tax expenses

      (1,479 )       (1,437 )       (943 )       (827 ) 
           

 

 

  

Net profit

      (4,113 )       (4,191 )       (2,296 )       (2,516 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Classified by continuation of business

            

Net profit from continuing activities

      (4,113 )       (4,191 )       

Classified by ownership

            

Net profit attributable to shareholders of the parent company

      (3,805 )       (3,933 )       

Minority interests

      (308 )       (258 )       

 

17

 

  4.1

Financial Statements (Cont’d)

China Eastern Airlines Corporation Limited

Consolidated and Company’s Income Statement for the Period from January to March 2021 (unaudited) (Cont’d)

 

RMB million                            
     Jan to Mar      Jan to Mar      Jan to Mar      Jan to Mar  
     2021      2020      2021      2020  
     Consolidated      Consolidated      Company      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

      —          —          —          —    

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

      3        —          3        —    

Changes in fair value of other equity instrument investments

      (68 )       (174 )       (68 )       (175 ) 
           

 

 

  

Other comprehensive income that will be reclassified into profit or loss

            

Cash flow hedge reserve

      (359 )       (115 )       (359 )       (127 ) 
           

 

 

  

Other comprehensive income, net of tax

      (424 )       (289 )       (424 )       (302 ) 
           

 

 

  

Of which:

            

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

      (424 )       (289 )       
     

 

 

        

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

      —          —          
     

 

 

        

Total comprehensive income

      (4,537 )       (4,480 )       (2,720 )       (2,818 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Of which:

            

Total comprehensive income attributable to shareholders of the parent company

      (4,229 )       (4,222 )       
  

 

 

     

 

 

        

Total comprehensive income attributable to minority interests

      (308 )       (258 )       
  

 

 

     

 

 

        

Earnings per share

            

Basis earnings per share (in RMB)

      (0.23 )       (0.24 )       
  

 

 

     

 

 

        

Diluted earnings per share (in RMB)

      (0.23 )       (0.24 )       
  

 

 

     

 

 

        

 

18

 

  4.1

Financial Statements (Cont’d)

 

China Eastern Airlines Corporation Limited

Consolidated and Company’s Cash Flow Statement for the Period from January to March 2021 (unaudited)

 

RMB million                            
     Jan to Mar      Jan to Mar      Jan to Mar      Jan to Mar  
   2021      2020      2021      2020  
     Consolidated      Consolidated      Company      Company  

1. Cash flow from operating activities

            

Cash received from sales of goods and provision of labour services

      14,469        10,055        9,539        5,163  

Refund of taxes

      —          36        —          7  

Other cash received from operating activities

      2,759        2,070        1,448        1,219  
  

 

 

     

 

 

     

 

 

     

 

 

  

Sub-total of cash inflow from operating activities

      17,228        12,161        10,987        6,389  
  

 

 

     

 

 

     

 

 

     

 

 

  

Cash paid for purchase of goods and receiving of labour services

      (9,125 )       (10,980 )       (6,989 )       (8,111 ) 

Cash paid to and for employees

      (5,751 )       (5,618 )       (3,817 )       (3,340 ) 

Taxes paid

      (639 )       (503 )       (187 )       (202 ) 

Other cash paid for operating activities

      (1,400 )       (1,186 )       (3,437 )       (1,569 ) 
           

 

 

  

Sub-total of cash outflow from operating activities

      (16,915 )       (18,287 )       (14,430 )       (13,222 ) 
           

 

 

  

Net cash flows from operating activities

      313        (6,126 )       (3,443 )       (6,833 ) 
           

 

 

  

 

19

 

  4.1

Financial Statements (Cont’d)

China Eastern Airlines Corporation Limited

Consolidated and Company’s Cash Flow Statement for the Period from January to March 2021 (unaudited) (Cont’d)

 

RMB million                            
     Jan to Mar      Jan to Mar      Jan to Mar      Jan to Mar  
   2021      2020      2021      2020  
     Consolidated      Consolidated      Company      Company  

2. Cash flow from investing activities

            

Cash received from disposal of investment

      141        —          141        —    

Investment income in cash

      80        —          580        —    

Net cash received from disposal of fixed assets, intangible assets and other long-term assets

      —          —          —          —    

Net cash received from disposal of subsidiaries

      117        —          117        —    

Other cash received from investing activities

      —          —          —          —    
  

 

 

     

 

 

     

 

 

     

 

 

  

Sub-total of cash inflow from investing activities

      338        —          838        —    
  

 

 

     

 

 

     

 

 

     

 

 

  

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

      (2,654 )       (1,403 )       (1,951 )       (1,397 ) 

Investments paid in cash

      —          —          —          —    
  

 

 

     

 

 

     

 

 

     

 

 

  

Sub-total of cash outflow from investing activities

      (2,654 )       (1,403 )       (1,951 )       (1,397 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Net cash flow from investing activities

      (2,316 )       (1,403 )       (1,113 )       (1,397 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

 

20

 

  4.1

Financial Statements (Cont’d)

China Eastern Airlines Corporation Limited

Consolidated and Company’s Cash Flow Statement for the Period from January to March 2021 (unaudited) (Cont’d)

 

RMB million                            
     Jan to Mar      Jan to Mar      Jan to Mar      Jan to Mar  
   2021      2020      2021      2020  
     Consolidated      Consolidated      Company      Company  

3. Cash flow from financing activities

            

Cash received from borrowings

      54,515        27,397        56,322        27,484  
  

 

 

           

 

 

  

Sub-total of cash inflow from financing activities

      54,515        27,397        56,322        27,484  
           

 

 

  

Cash paid for repayment of indebtedness

      (40,146 )       (8,328 )       (40,630 )       (9,974 ) 

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

      (1,310 )       (1,618 )       (1,065 )       (1,218 ) 

Of which: Payment of dividends and profits to minority interests from subsidiaries

      —          —          —          —    

Other cash paid for financing activities

      (3,020 )       (4,265 )       (2,043 )       (2,522 ) 
           

 

 

  

Sub-total of cash outflow from financing activities

      (44,476 )       (14,211 )       (43,738 )       (13,714 ) 
           

 

 

  

Net cash flow from financing activities

      10,039        13,186        12,584        13,770  
           

 

 

  

4. Effect of changes in exchange rate on cash and cash equivalents

      6        12        6        7  
           

 

 

  

5. Net (decrease)/increase in cash and cash equivalents

      8,042        5,669        8,034        5,547  

Add: Balance of cash and cash equivalents at the beginning of the period

      7,651        1,350        7,560        1,107  
           

 

 

  

6. Balance of cash and cash equivalents at the end of the period

      15,693        7,019        15,594        6,654  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

21