EX-99.1

EX-99.1 2 d408570dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

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

(a joint stock limited company incorporated in the People’s Republic of China with limited liability)

(Stock Code: 1055)

THIRD QUARTERLY REPORT OF 2022

Summary

The quarterly financial report for the third quarter of 2022 (i.e. the three months ended 30 September 2022, the “reporting period”) of China Southern Airlines Company Limited (the “Company”, together with its subsidiaries, the “Group”) was prepared in accordance with the PRC Accounting Standards and was unaudited.

This announcement is published pursuant to Rule 13.09 and Rule 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

IMPORTANT NOTICE:

The board of directors (the “Board”) and the supervisory committee of China Southern Airlines Company Limited (the “Company”) and its directors (the “Directors”), supervisors and senior management warrant the truthfulness, accuracy and completeness of the content contained in this quarterly report, and the report does not contain inaccurate or misleading statements or material omission, and jointly and severally accept full legal responsibility.

The responsible person of the Company, Mr. Ma Xu Lun (Chairman), the responsible person of the accounting of the Company, Mr. Yao Yong (Executive Vice President, Chief Account and Chief Financial Officer of the Company), and the responsible person of the accounting department, Ms. Mao Juan (General Manager of Finance Department) warrant the truthfulness, accuracy and completeness of the financial statements contained in this quarterly report.

Whether the Third Quarterly Financial Statements have been audited

☐ Yes ☒ No

I.	MAJOR ACCOUNTING DATA

(I)

Principal accounting data and financial indicators

Unit: Million Currency: RMB


Items	The reporting period		Increase/ (decrease) as compared with the corresponding period last year (%)		Nine months ended 30 September 2022		Increase/ (decrease) as compared with the corresponding period last year (%)
Operating revenue		29,344		9.01		70,161		-10.62
Net profit attributable to shareholders of the Company		-6,099		326.21		-17,587		187.42
Net profit attributable to shareholders of the Company after deducting non-recurring gains and losses		-6,571		298.24		-18,322		184.06
Net cash flows generated from operating activities		N/A		N/A		7,300		-44.52
Basic earnings per share (RMB/share)		-0.36		350.00		-1.03		171.05
Diluted earnings per share (RMB/share)		-0.36		350.00		-1.03		171.05
Weighted average return on net assets (%)		-11.98		Decrease by 10.05 percentage points		-34.94		Decrease by 26.23 percentage points
		As at the end of the reporting period		As at the end of last year				Increase/ (decrease) as compared with that of the end of last year (%)

Total assets		309,794		322,948				-4.07

Equity attributable to shareholders of the Company		51,595		67,616				-23.69

Note:

The “reporting period” and the same expressions hereafter mentioned refer to the three-months period from the beginning to the end of the third quarter of 2022.

(II)

Non-recurring gains and losses

Unit: Million Currency: RMB


Items	Amount for the reporting period		Amount for the period from the beginning of the year to the end of the reporting period
Gains or losses on disposal of non-current assets		44		149
Government grants recorded in the income statement for the current period, but exclusive of government grants which are closely related to the normal business of the Company and entitled pursuant to unified standard quota or amount under the government policy		80		119
Other non-operating income and expenses other than the above		213		528
Other profit and loss items that meet the definition of non-recurring profit and loss		318		329
Less: Effect of income tax		163		278
Effect on non-controlling interests after taxation		20		112

Total		472		735

Notes on defining any non-recurring gains and losses items as listed in the “The No. 1 Explanatory Announcement Regarding Information Disclosure for Companies Issuing Securities Publically – Non-Recurring Gains and Losses” as recurring gains and losses items

☐ Applicable ☒ Not applicable

(III)

Changes to major accounting data and financial indicators and reasons

☒ Applicable ☐ Not applicable


Items	Percentage of change (%)		Main reason(s)
Net profit attributable to shareholders of the Company – the reporting period		326.21	The loss increased in the reporting period as compared with the same period last year, which is attributable to the epidemics, high oil price, RMB devaluation and other unfavorable factors.
Net profit attributable to shareholders of the Company – nine months ended 30 September 2022		187.42	The loss increased in the nine months ended 30 September 2022 as compared with the same period last year, which is attributable to the epidemics, high oil price, RMB devaluation and other unfavorable factors.
Net profit attributable to shareholders of the Company after deducting non-recurring gains and losses – the reporting period		298.24	The loss increased in the reporting period as compared with the same period last year, which is attributable to the epidemics, high oil price, RMB devaluation and other unfavorable factors.
Net profit attributable to shareholders of the Company after deducting non-recurring gains and losses – nine months ended 30 September 2022		184.06	The loss increased in the nine months ended 30 September 2022 as compared with the same period last year, which is attributable to the epidemics, high oil price, RMB devaluation and other unfavorable factors.
Net cash flows generated from operating activities – nine months ended 30 September 2022		-44.52	The income decreased in the nine months ended 30 September 2022 as compared with the same period last year, which is attributable to the epidemics and other unfavorable factors.
Basic earnings per share – the reporting period		350.00	The loss increased in the reporting period as compared with the same period last year, which is attributable to the epidemics, high oil price, RMB devaluation and other unfavorable factors.
Basic earnings per share – nine months ended 30 September 2022		171.05	The loss increased in the nine months ended 30 September 2022 as compared with the same period last year, which is attributable to the epidemics, high oil price, RMB devaluation and other unfavorable factors.
Diluted earnings per share – the reporting period		350.00	The loss increased in the reporting period as compared with the same period last year, which is attributable to the epidemics, high oil price, RMB devaluation and other unfavorable factors.
Diluted earnings per share – nine months ended 30 September 2022		171.05	The loss increased in the nine months ended 30 September 2022 as compared with the same period last year, which is attributable to the epidemics, high oil price, RMB devaluation and other unfavorable factors.

II.

INFORMATION OF SHAREHOLDERS

(I)

Total number of ordinary shareholders and number of preference shareholders with restored voting rights and shareholdings of the top ten shareholders

Unit: Share


Total number of ordinary shareholders as at the end of the reporting period			137,795			Total number of preference shareholders with restored voting rights as at the end of the reporting period (if any)		Not applicable


Shareholdings of the top ten shareholders

Name of shareholder	Capacity of shareholder	Total number of shares held at the end of the reporting period		Shareholding percentage at the end of the reporting period (%)		Number of shares subject to trading restrictions at the end of the reporting period		Status of pledged, marked or frozen shares
Name of shareholder	Capacity of shareholder							Status of shares		Number of shares
China Southern Air Holding Company Limited	State-owned legal entity		8,600,897,508		49.67		2,453,434,457		No		0
Nan Lung Holding Limited	State-owned legal entity		2,612,124,036		15.08		0		No		0
HKSCC Nominees Limited	Overseas legal entity		1,750,886,837		10.11		0		Not known		—
Hong Kong Securities Clearing Company Limited	Overseas legal entity		623,084,982		3.60		0		No		0
China National Aviation Fuel Group Limited	State-owned legal entity		350,162,257		2.02		0		No		0
China Securities Finance Corporation Limited	State-owned legal entity		320,484,148		1.85		0		No		0
American Airlines, Inc	Overseas legal entity		270,606,272		1.56		0		No		0
China Structural Reform Fund Corporation Limited	State-owned legal entity		192,659,933		1.11		0		No		0
Spring Airlines Co., Ltd.	Domestic non-State-owned legal entity		140,531,561		0.81		0		No		0
China Reform State-owned Enterprise Operation Investment Fund Management (Guangzhou) Co., Ltd. – China Reform State-owned Enterprise Operation (Guangzhou) Investment Fund (LLP)	Domestic non-State-owned legal entity		70,006,275		0.40		0		No		0

Particulars of the top ten shareholders not subject to trading restrictions


Name of shareholder	Number of tradable shares not subject to selling restrictions		Type and number of shares
Name of shareholder			Type of shares	Number of shares
China Southern Air Holding Company Limited		6,147,463,051	RMB ordinary shares		6,147,463,051
Nan Lung Holding Limited		2,612,124,036	Overseas-listed foreign shares		2,612,124,036
HKSCC Nominees Limited		1,750,886,837	Overseas-listed foreign shares		1,750,886,837
Hong Kong Securities Clearing Company Limited		623,084,982	RMB ordinary shares		623,084,982
China National Aviation Fuel Group Limited		350,162,257	RMB ordinary shares		350,162,257
China Securities Finance Corporation Limited		320,484,148	RMB ordinary shares		320,484,148
American Airlines, Inc.		270,606,272	Overseas-listed foreign shares		270,606,272
China Structural Reform Fund Corporation Limited		192,659,933	RMB ordinary shares		192,659,933
Spring Airlines Co., Ltd.		140,531,561	RMB ordinary shares		140,531,561
China Reform State-owned Enterprise Operation Investment Fund Management (Guangzhou) Co., Ltd. – China Reform State-owned Enterprise Operation (Guangzhou) Investment Fund (LLP)		70,006,275	RMB ordinary shares		70,006,275
Explanation of the related party relationship or concert party relationship of the above shareholders		China Southern Air Holding Company Limited held in aggregate 2,648,836,036 H shares of the Company through its wholly-owned subsidiaries in Hong Kong, namely Nan Lung Holding Limited and Perfect Lines (Hong Kong) Limited. The Company is not aware of any other related party relationship between other shareholders. The overseas-listed foreign shares among the tradable shares not subject to the trading restrictions in the table above include 608,695,652 H shares and 368,852,459 H shares held by Nan Lung Holding Limited, a wholly-owned subsidiary of China Southern Air Holding Company Limited, the controlling shareholder of the Company, in connection with the subscription of the Company’s 2020 non-public issuance of H shares and the subscription of the Company’s 2022 non-public issuance of H shares, respectively. Nan Lung Holding Limited undertakes not to trade or transfer the aforesaid H shares within 36 months from the completion date of subscription for the aforementioned H shares.
Explanation on the top ten shareholders and the top ten shareholders not subject to trading restrictions who have participated in the business of margin financing and securities lending and margin refinancing (if any)		Not applicable

III.

IMPORTANT INFORMATION

Other important information related to the Company’s business performance during the reporting period should be brought to the attention of the investors

☒ Applicable ☐ Not applicable

Status on the guarantees provided for the SPVs of the Company as of the date of this report:


No.	Established SPVs	Actually Provided (Yes/no)	Guaranteed Amount (US$100 million)
1	China Southern Airlines No. 1	Yes		1.50
2	China Southern Airlines No. 2	Yes		1.40
3	China Southern Airlines No. 3	Yes		3.28
4	China Southern Airlines No. 5	Yes		0.92
5	China Southern Airlines No. 6	Yes		0.35
6	China Southern Airlines No. 7	Yes		0.35
7	China Southern Airlines No. 8	Yes		0.35
8	China Southern Airlines No. 9	Yes		5.88
9	China Southern Airlines No. 10	Yes		5.17
10	China Southern Airlines No. 11	Yes		2.98
11	China Southern Airlines No. 12	Yes		0.25
12	China Southern Airlines No. 13	Yes		0.25
13	China Southern Airlines No. 14	Yes		0.33
14	China Southern Airlines No. 15	Yes		3.11
15	China Southern Airlines No. 16	Yes		5.26
16	China Southern Airlines No. 17	Yes		1.49
17	China Southern Airlines No. 18	Yes		2.50
18	China Southern Airlines No. 19	Yes		0.51
19	China Southern Airlines No. 20	Yes		0.51
20	China Southern Airlines No. 21	Yes		0.48
21	China Southern Airlines No. 22	Yes		0.48


No.	Established SPVs	Actually Provided (Yes/no)	Guaranteed Amount (US$100 million)
22	China Southern Airlines No. 23	Yes		0.48
23	China Southern Airlines No. 24	Yes		2.78
24	China Southern Airlines No. 25	Yes		2.04
25	China Southern Airlines No. 26	Yes		4.73
26	Chongqing Airlines No.1	Yes		3.52
27	Chongqing Airlines No.2	Yes		0.32
28	Xiamen Airlines No.2	Yes		0.10
29	Xiamen Airlines No.3	Yes		0.09
30	Xiamen Airlines No.4	Yes		0.19
31	Xiamen Airlines No.5	Yes		0.19
32	Xiamen Airlines No.6	Yes		0.20
33	Xiamen Airlines No.7	Yes		0.11
34	Xiamen Airlines No.8	Yes		0.19
35	Xiamen Airlines No.9	Yes		0.19
36	Xiamen Airlines No.10	Yes		0.19
37	Xiamen Airlines No.11	Yes		0.19
38	Xiamen Airlines No.12	Yes		0.13
39	Xiamen Airlines No.13	Yes		0.19
40	Xiamen Airlines No.14	Yes		0.18
41	Xiamen Airlines No.15	Yes		0.18
42	Xiamen Airlines No.16	Yes		0.09
43	Xiamen Airlines No.17	Yes		0.09

Total	/	/		53.72

Note

During the reporting period, pursuant to the authorization of the 2019 annual general meeting of the Company, Xiamen Airlines adjusted the guarantee limits of Xiamen Airlines No.16 and Xiamen Airlines No. 17 to US$9 million and US$9 million, respectively, within the authorized guarantee line of US$274 million.

As at the end of reporting period, the total guarantee amounts actually provided for the aforementioned 43 SPVs by the Company and its subsidiaries, i.e. Xiamen Airlines and Chongqing Airlines, are US$5.372 billion (equivalent to approximately RMB38.14 billion, calculated based on the Renminbi central parity rate of US$1=RMB7.0998 published by the People’s Bank of China on 30 September 2022), which are within the scope of the authorized guarantee amount approved by the general meeting of the Company.

IV.

QUARTERLY FINANCIAL STATEMENTS

(I)

Type of audit opinion

☐ Applicable ☒ Not applicable

(II)

Financial statements

Consolidated Balance Sheet

As at 30 September 2022

Prepared by: China Southern Airlines Company Limited

Unit: Million Currency: RMB Audit type: Unaudited


Items	30 September 2022		31 December 2021
Current assets:
Cash at bank and on hand		15,195		21,841
Settlement provisions
Loans to banks and other financial institutions
Held-for-trading financial assets
Derivative financial assets		26		—
Bills receivable		—		4
Accounts receivable		4,499		2,894
Receivables financing
Prepayments		607		736
Premiums receivable
Reinsurance accounts receivable


Items	30 September 2022		31 December 2021
Reinsurance contract reserves receivable
Other receivables		1,542		1,275
Including: Interest receivable
Dividends receivable		11		5
Financial assets purchased with agreement to resale
Inventories		1,751		1,652
Contract assets
Assets held for sale		834		1,292
Non-current assets due within one year		137		138
Other current assets		5,017		8,034

Total current assets		29,608		37,866

Non-current assets:
Loans and advances
Debt investments
Other debt investments
Long-term receivables		541		645
Long-term equity investments		6,084		5,977
Other equity instrument investments		563		563
Other non-current financial assets		91		95
Investment properties		349		305
Fixed assets		88,679		90,817
Construction in progress		33,714		31,869
Productive biological assets
Oil and gas assets
Right-of-use assets		124,583		132,725
Intangible assets		6,398		6,564


Items	30 September 2022		31 December 2021
Development expenses
Goodwill
Long-term deferred expenses		650		768
Deferred tax assets		16,903		12,831
Other non-current assets		1,631		1,923
Total non-current assets		280,186		285,082

Total assets		309,794		322,948

Current liabilities:
Short-term borrowings		44,995		25,116
Borrowings from the central bank
Loans from other banks
Held-for-trading financial liabilities
Derivative financial liabilities		1,148		1,222
Bills payable
Accounts payable		14,640		12,183
Transportation documents settlement
Contract liabilities		1,341		1,542
Funds from selling out and repurchasing financial assets
Receipts of deposits and deposits from other banks
Accounts payable to brokerage customers
Proceeds from underwriting securities received on behalf of customers
Employee benefits payable		3,915		4,457


Items	30 September 2022		31 December 2021
Taxes payable		785		1,140
Other payables		9,262		7,914
Including: Interest payable
Dividends payable		1		3
Fees and commissions payable
Reinsurance accounts payable
Liabilities held for sale
Non-current liabilities due within one year		32,867		28,990
Other current liabilities		11,392		28,426

Total current liabilities		120,345		110,990

Non-current liabilities:
Reserves for insurance contracts
Long-term borrowings		22,966		15,389
Bonds payable		19,059		22,965
Including: Preferred shares
Perpetual bonds
Lease liabilities		72,955		81,944
Long-term payables		385		193
Long-term salaries payable
Accrued liabilities
Deferred income		769		725
Deferred tax liabilities		24		26
Other non-current liabilities		7,203		6,471

Total non-current liabilities		123,361		127,713

Total liabilities		243,706		238,703


Items	30 September 2022		31 December 2021
Owners’ equity (or shareholders’ equity):
Share capital (or issued capital)		17,317		16,948
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserve		49,082		47,887
Less: Inventory shares
Other comprehensive income		161		159
Specific reserve
Surplus reserve		2,579		2,579
General risk reserve
Retained earnings		-17,544		43

Total equity attributable to shareholders of the Company		51,595		67,616

Non-controlling interests		14,493		16,629

Total owners’ equity (or shareholders’ equity)		66,088		84,245

Total liabilities and owners’ equity (or shareholders’ equity)		309,794		322,948

Responsible person of

the Company:

Ma Xu Lun

Responsible person of the

accounting of the Company:
Yao Yong

Responsible person of the

accounting department:
Mao Juan

Consolidated Income Statement

For the nine months ended 30 September 2022

Prepared by: China Southern Airlines Company Limited

Unit: Million Currency: RMB Audit type: Unaudited


Items	Nine months ended 30 September 2022		Nine months ended 30 September 2021
I. Total revenue		70,161		78,495
Including: Operating revenue		70,161		78,495
Interest income
Premiums earned
Fees and commissions income
II. Total operating costs		94,601		88,437
Including: Cost of sales		80,216		77,748
Interest expense
Fees and commissions expense
Surrender payment
Net payment for insurance claim
Net provisions for insurance liability
Expenditure for insurance policy dividend
Reinsurance costs
Taxes and surcharges		196		291
Selling and administrative expenses		2,996		3,724
General and administrative expenses		2,455		2,650
Research and development expenses		268		298
Financial expenses		8,470		3,726
Including: Interest expenses		4,474		4,880
Interest income		347		533


Items	Nine months ended 30 September 2022		Nine months ended 30 September 2021
Add: Other income		2,478		2,681
Investment income (“-” for losses)		479		246
Including: Share of profit of associates and joint ventures		215		242
Derecognition of income from financial assets at amortised cost
Exchange gain (“–” for losses)
Gain arising from net exposure hedge (“–” for losses)
Gains arising from changes in fair value (“-” for losses)		164		-93
Credit losses (“-” for losses)		30		1
Impairment losses on property, plant and equipment and right-of-use rights (“–” for losses)
Gains on disposal of assets (“–” for losses)		149		103
III. Operating profit (“-” for losses)		-21,140		-7,004
Add: Non-operating income		553		417
Less: Non-operating expenses		22		40
IV. Total profits (“-” for total losses)		-20,609		-6,627
Less: Income tax expenses		-2,474		-1,527
V. Net profit (“-” for net losses)		-18,135		-5,100
(I) By continuity
1. Net profit from continuing operations (“-” for net losses)		-18,135		-5,100
2. Net profit from discontinued operations (“-” for net losses)
(II) By ownership
1. Net profit attributable to shareholders of the Company (“-” for net losses)		-17,587		-6,119
2. Non-controlling interests (“-” for net losses)		-548		1,019


Items	Nine months ended 30 September 2022		Nine months ended 30 September 2021
VI. Other comprehensive income, net of tax		3		-60
(I) Other comprehensive income (net of tax) attributable to shareholders of the Company		2		-59
1. Items that will not be reclassified to profit or loss		—		-76
(1) Change in defined benefit plans arising from re-measurement
(2) Equity-accounted investees – share of other comprehensive income (non-recycling)		—		-1
(3) Changes in fair value of other equity instruments		—		-75
(4) Change in fair value of the Company’s own credit risk
2. Items that may be reclassified subsequently to profit or loss		2		17
(1) Equity-accounted investees-share of other comprehensive income (recycling)		—		3
(2) Change in fair value of other debt investments
(3) Financial assets reclassified into other comprehensive income
(4) Provision for credit impairment of other debt investments
(5) Cash flow hedge: fair value movement of derivative financial assets/liabilities		—		14
(6) Translation differences arising on translation of foreign currency financial statements		2		—
(7) Others
(II) Other comprehensive income (net of tax) attributable to non-controlling interests		1		-1


Items	Nine months ended 30 September 2022		Nine months ended 30 September 2021
VII. Total comprehensive income		-18,132		-5,160
(I) Attributable to shareholders of the Company		-17,585		-6,178
(II) Attributable to non-controlling interests		-547		1,018
VIII.Earnings per share:
(I) Basic earnings per share (RMB/share)		-1.03		-0.38
(II) Diluted earnings per share (RMB/share)		-1.03		-0.38


Responsible person of the Company: Ma Xu Lun		Responsible person of the accounting of the Company: Yao Yong		Responsible person of the accounting department: Mao Juan

Consolidated Cash Flow Statement

For the nine months ended 30 September 2022

Prepared by: China Southern Airlines Company Limited

Unit: Million Currency: RMB Audit type: Unaudited


Items	Nine months ended 30 September 2022		Nine months ended 30 September 2021
I. Cash flows from operating activities:
Proceeds from sale of goods and rendering of services		75,035		85,440
Net increase in customer and interbank deposits
Net increase in borrowings from the central bank
Net cash increase in placements from other financial institutions
Cash received from premiums under original insurance contracts
Net cash received from reinsurance business
Net increase in deposits of policy holders and investment funds
Cash received from interest, fees and commissions
Net increase in capital due to banks and other financial institutions
Net increase in cash received from repurchase business
Net cash received by agents for trading in securities
Refund of taxes and surcharges		5,600		47
Proceeds from other operating activities		3,266		3,273
Sub-total of operating cash inflows from operating activities		83,901		88,760


Items	Nine months ended 30 September 2022		Nine months ended 30 September 2021
Payment for goods and services		54,057		51,511
Net increase in customer loans and advances to customers
Net increase in deposits in the central bank and interbank deposits
Cash paid for compensation payments under original insurance contracts
Net increase in placements with banks and other financial institutions
Cash paid for interest, fees and commissions
Cash paid for insurance policy dividend
Payment to and for employees		18,820		20,461
Payment of taxes and surcharges		3,147		3,134
Payment for other operating activities		577		496
Sub-total of cash outflows from operating activities		76,601		75,602
Net cash flows from operating activities		7,300		13,158
II. Cash flows from investment activities:
Cash received from return of investments		597		120
Cash received on investment income		129		233
Net proceeds from disposal of fixed assets, intangible assets and other long-term assets		3,831		736
Net cash received from disposal of subsidiaries and other operating units		190		—
Proceeds from other investing activities		321		465
Sub-total of cash inflows from investing activities		5,068		1,554
Payment for acquisition of fixed assets, intangible assets and other long-term assets		7,209		13,762
Cash paid for investment		530		—
Net increase in secured loans
Net cash paid for acquisition of subsidiaries and other operating units
Other cash paid relating to investing activities
Sub-total of cash outflows from investment activities		7,739		13,762
Net cash flows from investing activities		-2,671		-12,208


Items	Nine months ended 30 September 2022		Nine months ended 30 September 2021
III. Cash flows from financing activities:
Proceeds from investors		1,665		1,124
Including: Investment received from non-controlling interests		116		1,124
Proceeds from borrowings		57,726		52,262
Proceeds from other financing activities		19,900		69,938
Sub-total of cash inflows from financing activities		79,291		123,324
Repayments of borrowings		85,116		122,588
Payment for dividends, profit distributions or interest		5,440		5,122
Including: Dividends and profits paid to non-controlling shareholders of subsidiaries		902		42
Payment for other financing activities		14		—
Sub-total of cash outflows from financing activities		90,570		127,710
Net cash flows from financing activities		-11,279		-4,386
IV. Effect of changes in exchange rate on cash and cash equivalents		80		-4
V. Net increase in cash and cash equivalents		-6,570		-3,440
Add: Cash and cash equivalents at the beginning of the period		21,456		25,419
VI. Cash and cash equivalents at the end of the period		14,886		21,979


Responsible person of the Company: Ma Xu Lun		Responsible person of the accounting of the Company: Yao Yong		Responsible person of the accounting department: Mau Juan

(III)

Adjustment to relevant items of the financial statements at the beginning of the first adoption year due to the first adoption of new leasing standards in 2022

☐ Applicable ☒ Not applicable

By order of the Board

China Southern Airlines Company Limited

Chen Wei Hua and Liu Wei

Joint Company Secretaries

Guangzhou, the People’s Republic of China

28 October 2022

As at the date of this announcement, the Directors include Ma Xu Lun and Han Wen Sheng as executive Directors; and Liu Chang Le, Gu Hui Zhong and Guo Wei as independent non-executive Directors.