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 2014

 

Commission File Number: 001-14550

 

China Eastern Airlines Corporation Limited

———————————————————————————————————

(Translation of Registrant’s name into English)

 

Board Secretariat’s Office

Kong Gang San Lu, Number 88

Shanghai, China 200335

———————————————————————————————————

(Address of principal executive offices)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F: x Form 20-F    ¨ Form 40-F

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ¨

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ¨

 

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:  ¨ Yes    x No

 

If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):    n/a 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

			China Eastern Airlines Corporation Limited
			(Registrant)
Date	October 30, 2014		By	/s/ Wang Jian
					Name: Wang Jian
					Title: Joint Company Secretary

  

 

Certain statements contained in this announcement may be regarded as "forward-looking statements" within the meaning of the U.S. Securities Exchange Act of 1934, as amended. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual performance, financial condition or results of operations of the Company to be materially different from any future performance, financial condition or results of operations implied by such forward-looking statements. Further information regarding these risks, uncertainties and other factors is included in the Company's filings with the U.S. Securities and Exchange Commission. The forward-looking statements included in this announcement represent the Company's views as of the date of this announcement. While the Company anticipates that subsequent events and developments may cause the Company's views to change, the Company specifically disclaims any obligation to update these forward-looking statements, unless required by applicable laws. These forward-looking statements should not be relied upon as representing the Company's views as of any date subsequent to the date of this announcement.

 

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

 

 

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

(Stock code: 00670)

 

THIRD QUARTERLY REPORT 2014

 

This announcement is made by the Company pursuant to Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) and Rule 13.09(2)(a) 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 2014 were not audited, and were prepared in accordance with the PRC Accounting Regulations.

 

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 (which requires any issuer listed on The Stock Exchange of Hong Kong Limited (the “Stock Exchange”) whose securities are also listed on other stock exchange(s) to simultaneously inform the Stock Exchange of any information released to any of such other exchange(s) and to ensure that such information is released to the market in Hong Kong at the same time as it is released to the other market(s)). At the request of the Shanghai Stock Exchange, a similar announcement of the even date is being made by the Company in Shanghai pursuant to the relevant provisions of the Shanghai listing rules and regulations.

 

This quarterly report was prepared in accordance with the regulations as prescribed by the China Securities Regulatory Commission (the “CSRC”) in relation to disclosure of information in quarterly reports for listed companies, and is published simultaneously in Shanghai and Hong Kong. The financial statements of the Company for the third quarter of 2014 were not audited, and were prepared in accordance with the PRC Accounting Regulations.

 

The board of directors (the “Board”) and the supervisory committee of the Company, and its directors, supervisors and senior management hereby confirm that the information set out in this quarterly report does not contain false information, misleading statement or material omission, and accept joint and several responsibility for the correctness, accuracy and completeness of the information set out in this quarterly report.

 

  

All directors of the Company attended the meeting of the Board.

 

Name of the person-in-charge of the Company	Liu Shaoyong
Name of the officer-in-charge of accounting	Ma Xulun
Name of the officer-in-charge of the accounting department	Wu Yongliang
(accounting officer)

 

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

 

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

 

2.

MAIN FINANCIAL DATA AND CHANGES IN SHAREHOLDERS OF THE COMPANY

 

2.1

Main financial data

 

Unit: million

Currency: RMB

 

Increase/

decrease as

at the end of

the reporting

As at

period

the end of

As at the end of

compared

the reporting

last year

with the end

period

Adjusted

Unadjusted

of last year

(%)

Total assets

156,105

137,776

137,776

13.30

Net assets attributable to the shareholders of listed company

26,609

24,617

24,617

8.09

 

From the

beginning of

the year to

From the beginning of

Increase/

the end of

last year to the end of

decrease

the reporting

the reporting period

compared

period (from

last year (from January to

with the

January to

September)

same period

September)

Adjusted

Unadjusted

last year

(%)

Net cash flows from operating activities

8,883

11,823

11,823

–24.87

 

  

		From the
		beginning of
		the year to				From the beginning of								Increase/
		the end of				last year to the end of								decrease
		the reporting				the reporting period								compared
		period (from				last year (from January to								with the
		January to				September)								same period
		September)				Adjusted				Unadjusted				last year
														(%)
Revenue			68,735				67,112				67,112				2.42
Net profit attributable to shareholders of listed company			2,058				3,412				3,621				-39.68
Net profit attributable to shareholders of listed company after deducting non- recurring profit and loss			1,562				3,209				3,418				-51.32
															Decrease
															by 8.51
															percentage
Weighted average return on net assets (%)			8.04				16.55				14.09				points
Basic earnings per share (RMB per share)			0.1625				0.2894				0.3072				-43.85
Diluted earnings per share (RMB per share)			0.1625				0.2894				0.3072				-43.85

 

Note:	(1)	The total number of shares of the Company in 2013 increased from 11,276,539,000 shares as at the beginning of the year to 12,674,269,000 shares as at the end of the period;
	(2)	The relevant earnings per share of the Company in 2013 were calculated based on the weighted average number of the issued ordinary shares of the parent company, namely 11,789,678,000 shares, and the same financial information as at 30 September 2014 was calculated based on the weighted average number of the issued ordinary shares of the parent company, namely 12,674,269,000 shares.

 

  

After deducting non-recurring profit and loss and relevant amounts

 

Unit: million Currency: RMB

 

						Amount
						from the
						beginning of
						the year to
						the end of
		Amount for				the reporting
		the period				period (from
		(from July to				January to
Item		September)				September)
Gains or losses from disposal of non-current assets			-9				3
Non-operating incomes and expenses other than the above			319				553
Effect on income tax			-1				-18
Effect on minority interests (net of tax)			-12				-42
Total			297				496

 

  

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			224,609

  

	Shareholding of the 10 largest shareholders
		Increase or				Shareholdings								Number of
		decrease				as at								shares with
		during the				the end of								trading				Pledged or locked-up
Name of shareholders		reporting				the reporting								moratorium				Status of		Number of		Nature of
(in full)		Period				period				Proportion				held				shares		shares		shareholders
										(%)
China Eastern Air Holding Company (中國東方航空集團公司) (“CEA Holding”)			0				5,072,922,927				40.03	%			241,547,927			Nil				State-owned legal person
HKSCC NOMINEES LIMITED including CES Global Holdings (Hong Kong) Limited ( 東航國際控 股（香 港）有限公司) (“CES Global”)			68,000				4,178,529,298				32.97	%			698,865,000			Unknown				Overseas legal person
CES Finance Holding Co. Ltd (東航金控 有限責任公司）			0				457,317,073				3.61	%			457,317,073			Nil				State-owned legal person
Shanghai Alliance Investment Limited (上海聯和投資 有限公司)			0				427,085,429				3.37	%			0			Unknown				State-owned legal person
China National Aviation Fuel Holding Company (中國航空油料集團公司)			0				421,052,632				3.32	%			0			Unknown				State-owned legal person
Jin Jiang International Holdings Company Limited (錦江國際（集團）有限公司)			0				343,288,860				2.71	%			0			Unknown				State-owned legal person
Aerospace Capital Holding Co., Ltd. (航天投資控股有限公司)			0				99,088,580				0.78	%			0			Unknown				State-owned legal person
Sinotrans Air Transportation Development Co., Ltd. (中外運空運發展股份 有限公司)			0				83,157,894				0.66	%			0			Unknown				State-owned legal person
Bank of China Limited – Jiashi Research Selection Stock Securities Investment Fund (中國銀行股份有限 公司－嘉實研究精選 股票型證券投資基金)			55,075,433				55,075,433				0.43	%			0			Unknown				Unknown
China Construction Bank Corporation – Jiashi and Hybrid Securities Investment Fund (中國建設銀行股份有限 公司－嘉實泰和混合型 證券投資基金)			24,084,308				24,084,308				0.19	%			0			Unknown				Unknown

 

 

 

  

Shareholding of the 10 largest holders of shares without trading moratorium

 

		Number of listed
		shares held
		without trading
Name of shareholders		moratorium				Class and number of shares
						Class		Number
China Eastern Air Holding Company (中國東方航空集團公司)			4,831,375,000			RMB ordinary shares			4,831,375,000
HKSCC NOMINEES LIMITED			3,479,664,298			Overseas listed foreign shares			3,479,664,298
Shanghai Alliance Investment Limited (上海聯和投資有限公司)			427,085,429			RMB ordinary shares			427,085,429
China National Aviation Fuel Holding Company (中國航空油料集團公司)			421,052,632			RMB ordinary shares			421,052,632
Jin Jiang International Holdings Company Limited ( 錦江國際（集團）有限公司)			343,288,860			RMB ordinary shares			343,288,860
Aerospace Capital Holding Co., Ltd. (航天投資控股有限公司)			99,088,580			RMB ordinary shares			99,088,580
Sinotrans Air Transportation Development Co., Ltd. (中外運空運發展股 有限 公司)			83,157,894			RMB ordinary shares			83,157,894
Bank of China Limited – Jiashi Research Selection Stock Securities Investment Fund (中國銀行股 有限公司－嘉實 研究精選股票型證券投資基金)			55,075,433			RMB ordinary shares			55,075,433
China Construction Bank Corporation – Jiashi and Hybrid Securities Investment Fund (中國建設銀行股 有限公司－ 嘉實泰和混合型證券投資基金)			24,084,308			RMB ordinary shares			24,084,308
Bank of China Group Investment Limited (中銀集團投資有限公司)			21,997,755			RMB ordinary shares			21,997,755

 

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

Among the 4,178,529,298 shares held by HKSCC NOMINEES LIMITED, 2,626,240,000 shares are held by CES Global in the capacity of beneficial owner; CEA Holding owns 100% equity interest in CES Finance; thus, CES Finance indirectly owns 100% equity interest in CES Global; and CEA Holding owns 100% equity interests 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.

 

  

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

 

þ Applicable    ¨ Not applicable

 

Item		Change		Reasons for the change
		(%)
Prepayments		40.61		Primarily due to the prepaid tour fees by Shanghai Airlines Tours, a subsidiary, which have not yet been settled
Non-current assets held for sale		36.63		Primarily due to the increase in aircraft and engines held for sale by the Company
Non-current assets due within one year		57.14		Primarily due to the addition of aircraft under operating lease of the Company
Other current assets		97.15		Primarily due to the difference of input tax over output tax
Construction in progress		30.86		Primarily due to the addition of aircraft of the Company
Short-term borrowings		65.94		Primarily due to the increase in working capital requirements for business development of the Company
Notes payable		1400		Primarily due to the addition of bank acceptance bills for the payment of jet fuel cost
Bonds payable		47.24		Primarily due to the issuance of long-term bonds
Long-term payables		39.31		Primarily due to the addition of aircraft under finance lease
Business taxes and surcharges		-69.64		Primarily due to the implementation of the “transformation from business tax to value- added tax” policy by one of the Company’s subsidiaries since August 2013
Finance expenses, net		-587.34		Primarily due to substantial foreign exchange loss resulted from the significant increase in USD exchange rate

 

  

Item		Change		Reasons for the change
		(%)
Non-operating incomes		92.63		Primarily due to the increase in operational routes subsidy
Net profit attributable to shareholders of the parent company		-39.68		Primarily due to non-operating factors such as exchange loss which resulted in a decrease in net profit attributable to shareholders of the parent company

 

3.2

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

 

¨ Applicable     þ Not applicable

 

3.3

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

 

þ Applicable ¨ Not applicable

 

Whether the

undertaking has

Whether there is

been strictly

Background of

Type of

Undertaking

Time and term of

an implementation implemented in a

undertaking

undertaking

party

Content of undertaking

undertaking

period

timely manner

Undertaking in relation to refinancing

Trading moratorium of shares

CEA Holding/CES Finance

Pursuant to the “Report on non-public issuance of A shares” published by the Company on 17 April 2013, the Company issued 241,547,927 A shares of the Company and 457,317,073 A shares of the Company to CEA Holding and CES Finance respectively, on a non-public basis in April 2013. CEA Holding and CES Finance undertook that: they shall not transfer the A shares of the Company purchased under the aforesaid issuance within 36 months from the date of completion of the issuance of A shares.

Time of undertaking: April 2013; term of undertaking: from 16 April 2013 to 16 April 2016

Yes

Yes

Trading moratorium of shares

CES Global

The Company issued 698,865,000 additional H shares to CES Global in June 2013. According to the resolution passed at the 18th ordinary meeting of the sixth session of the Board held on 11 September 2012 and the resolution passed at the 2012 first extraordinary general meeting of the Company held on 9 November 2012, CES Global undertook that: it shall not transfer the H shares of the Company purchased under the aforesaid issuance within 36 months from the date of completion of the issuance of H shares.

Time of undertaking: November 2012; term of undertaking: from 21 June 2013 to 21 June 2016

Yes

Yes

 

 

Whether the

undertaking has

Whether there is

been strictly

Background of

Type of

Undertaking

Time and term of

an implementation implemented in a

undertaking

undertaking

party

Content of undertaking

undertaking

period

timely manner

To resolve defects in land and other property ownership

CEA Holding

Due to historical reasons, some of the land and property injected by CEA Holding into the Company had not yet been transferred to the name of the Company. With regard to 17 properties which are located in Guangzhou and Shenzhen (with an aggregate GFA of approximately 1,996.51 square meters), CEA Holding undertook that it shall, resolve defects in building ownership by completing procedures for transferring property ownership to the Company, or transferring the relevant gains to the Company upon external disposal within 3 years; and CEA Holding shall bear the corresponding obligations in relation to the losses caused to the Company as a result of the failure of CEA Holding in completing the relevant procedures for transferring the relevant property ownership in a timely manner.

Time of undertaking: June 2014; term of undertaking: from 27 June 2014 to 30 June 2017

Yes

Yes

Due to historical reasons, some of the land and property injected by CEA Holding into the Company had not yet been transferred to the name of the Company. With regard to 76 properties which are located in the Eastern District of Shanghai Hongqiao Airport (the relevant land ownership of which has been transferred to the Company) (with an aggregate GFA of approximately 146,700 square meters), relevant construction procedures were not completed for the buildings due to historical reasons, and therefore it is currently difficult to carry out ownership transfer. As a result, CEA Holding undertook that it shall, strive for opportunity to develop in the Eastern District of Shanghai Hongqiao Airport, and resolve defects in relevant building ownership by completing relevant procedures for transferring building ownership to the Company in batches upon fulfillment of conditions or through land replacement, the expected final completion time of which is approximately 10 to 12 years. The progress of resolving the above defects in property ownership and its results are subject to the overall development policy of the Eastern District of Shanghai Hongqiao Airport and its progress of implementation.  CEA Holding shall bear the corresponding obligations in relation to the losses caused to the Company as a result of the failure of CEA Holding in completing the relevant procedures for transferring the relevant property ownership in a timely manner.

Time of undertaking: June 2014; term of undertaking: from 27 June 2014 to 30 June 2026

Yes

Yes

  

 

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

 

¨ Applicable

þ  Not applicable

 

3.5	Impact of the adoption of new accounting standards on the consolidated financial statements

 

In January 2014, Ministry of Finance (“MOF”) successively promulgated or revised a series of accounting standards. Overseas listed enterprises were encouraged to early adopt some of such standards notwithstanding the effective date is 1 July 2014. As an overseas listed company, the Company has early adopted six accounting standards including Accounting Standards for Business Enterprises No. 39 – Fair Value Measurement, Accounting Standards for Business Enterprises No. 40 – Joint Arrangements, as well as revised Accounting Standards for Business Enterprises No. 30 – Presentation of Financial Statements, Accounting Standards for Business Enterprises No. 9 – Employee Remunerations, Accounting Standards for Business Enterprises No. 33 – Consolidated Financial Statements and Accounting Standards for Business Enterprises No. 2 – Long-term Equity Investment in the preparation of 2013 financial statements. Early adoption of the six aforesaid accounting standards was approved at the 2014 fifth regular meeting of the board of directors of the Company, and retrospective adjustments to the relevant financial data shall be made in accordance with the requirements. Please refer to the paragraph headed “(2) Adoption of Certain Revised/New Accounting Standards” under “Note 2. Critical Accounting Policies and Accounting Estimates” to the financial statements set out in the 2013 annual report as disclosed by the Company on 26 March 2014 for details.

 

In addition, following the publication of 2013 annual report by the Company, MOF issued two accounting standards including Accounting Standards for Business Enterprises No. 41 – Disclosure of Interests in Other Entity and Accounting Standards for Business Enterprises No. 37 – Presentation of Financial Instruments (as revised). Accounting Standards for Business Enterprises No. 41 – Disclosure of Interests in Other Entity came into effect on 1 July 2014, while Accounting Standards for Business Enterprises No. 37 – Presentation of Financial Instruments (as revised) are adopted for the preparation of financial reports from year 2014 and the subsequent periods. Adoption of the two aforesaid new accounting standards was approved at the 2014 fifth regular meeting of the board of directors of the Company, and retrospective adjustments to the relevant financial data shall be made in accordance with the requirements (if necessary).

 

By order of the Board

中國東方航空股 有限公司

CHINA EASTERN AIRLINES CORPORATION LIMITED

Liu Shaoyong

Chairman

 

 

As at the date of this announcement, the directors of the Company are:

 

Liu Shaoyong	(Chairman)
Ma Xulun	(Vice Chairman, President)
Xu Zhao	(Director)
Gu Jiadan	(Director)
Li Yangmin	(Director, Vice President)
Tang Bing	(Director, Vice President)
Sandy Ke-Yaw Liu	(Independent non-executive Director)
Ji Weidong	(Independent non-executive Director)
Li Ruoshan	(Independent non-executive Director)
Ma Weihua	(Independent non-executive Director)

 

Shanghai, the People’s Republic of China

29 October 2014

 

 

4.	APPENDICES

 

4.1

Financial Statements

 

Consolidated Balance Sheet

30 September 2014

Prepared by: China Eastern Airlines Corporation Limited

Amounts expressed in RMB million

Unaudited

 

		Balance at
		the end of				Balance at
		the reporting				the beginning of
Item		Period				the year
Current assets:
Monetary capital			2,126				2,378
Hedge instruments			8				–
Trade receivables			2,882				3,524
Prepayments			1,198				852
Dividends receivable			9				20
Other receivables			2,097				2,107
Inventory			2,317				2,305
Non-current assets held for sale			470				344
Non-current assets due within one year			154				98
Other non-current assets			1,936				982
Total current assets			13,197				12,610
Non-current assets:
Financial assets available for sale			401				411
Hedge instruments			13				68
Long-term equity investment			1,608				1,497
Investment properties			234				–
Fixed assets			102,711				90,677
Construction in progress			24,015				18,352
Intangible assets			2,445				2,375
Goodwill			9,028				9,028
Long-term deferred expenses			1,217				1,338
Deferred income tax assets			389				389
Other non-current assets			847				1,031
Total non-current assets			142,908				125,166
Total assets			156,105				137,776

 

 

4.1	Financial Statements

 

Consolidated Balance Sheet (Cont’d)

30 September 2014

Prepared by: China Eastern Airlines Corporation Limited

Amounts expressed in RMB million

Unaudited

 

			Balance at
			the end of				Balance at
			the reporting				the beginning of
Item			period				the year
Current liabilities:
Short-term borrowings			13,151				7,925
Hedge instruments			9				3
Notes payable			600				40
Trade payables			12,590				12,532
Account collected in advance			654				436
Settlement of vouchers			3,919				4,497
Staff remuneration payable			2,191				2,819
Tax payable			1,669				1,755
Interest payable			573				484
Other payables			2,346				2,224
Non-current liabilities due within one year			11,457				16,366
Other current liabilities			4,000				4,000
Total current liabilities			53,159				53,081
Non-current liabilities:
Long-term borrowings			23,687				20,330
Hedge instruments			80				124
Bonds payable			10,285				6,985
Long-term payables			33,055				23,728
Long-term staff remuneration payable			5,615				5,615
Special items payable			116				115
Deferred income tax liabilities			66				30
Other non-current liabilities			1,648				1,477
Total non-current liabilities			74,552				58,404
Total liabilities			127,711				111,485

 

 

4.1

Financial Statements

 

Consolidated Balance Sheet (Cont’d)

30 September 2014

Prepared by: China Eastern Airlines Corporation Limited

Amounts expressed in RMB million

Unaudited

 

		Balance at
		the end of				Balance at
		the reporting				the beginning of
Item			Period				the year
Owners’ equity (or shareholders’ equity):
Paid-up capital (or share capital)			12,674				12,674
Capital reserves			14,816				14,882
Undistributed profits			-881				-2,939
Total equity attributable to equity holders of parent company			26,609				24,617
Minority interests			1,785				1,674
Total owners’ equity			28,394				26,291
Total liabilities and owners’ equity			156,105				137,776

 

Legal representative: Liu Shaoyong

Officer-in-charge of accounting: Ma Xulun

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

 

 

4.1	Financial Statements

 

Balance Sheet of Parent Company

30 September 2014

Prepared by: China Eastern Airlines Corporation Limited

Amounts expressed in RMB million

Unaudited

 

		Balance at
		the end of				Balance at
		the reporting				the beginning of
Item		period				the year
Current assets:
Monetary capital			1,639				1,242
Hedge instruments			8				–
Trade receivables			2,750				2,914
Prepayments			319				291
Dividends receivable			9				51
Other receivables			10,101				9,318
Inventory			1,950				1,964
Non-current assets held for sale			–				–
Non-current assets due within one year			65				40
Other non-current assets			1,936				977
Total current assets			18,777				16,797
Non-current assets:
Financial assets available for sale			366				374
Hedge instruments			13				68
Long-term equity investment			11,971				11,366
Investment properties			–				–
Fixed assets			66,184				57,840
Construction in progress			22,297				16,709
Intangible assets			1,471				1,381
Goodwill			9,028				9,028
Long-term deferred expenses			849				958
Deferred income tax assets			–				–
Other non-current assets			502				600
Total non-current assets			112,681				98,324
Total assets			131,458				115,121

 

 

4.1	Financial Statements

 

Balance Sheet of Parent Company (Cont’d)

30 September 2014

Prepared by: China Eastern Airlines Corporation Limited

Amounts expressed in RMB million

Unaudited

 

		Balance at
		the end of				Balance at
		the reporting				the beginning of
Item		period				the year
Current liabilities:
Short-term borrowings			14,825				8,018
Hedge instruments			9				3
Notes payable			600				–
Trade payables			11,899				11,787
Account collected in advance			214				148
Settlement of vouchers			3,796				4,366
Staff remuneration payable			1,319				1,690
Tax payable			803				848
Interest payable			443				379
Other payables			6,976				6,307
Non-current liabilities due within one year			8,028				10,935
Other current liabilities			4,000				4,000
Total current liabilities			52,912				48,481
Non-current liabilities:
Long-term borrowings			18,558				14,400
Hedge instruments			80				124
Bonds payable			4,791				4,789
Long-term payables			22,088				15,767
Long-term staff remuneration payable			4,466				4,466
Special items payable			96				95
Deferred income tax liabilities			33				–
Other non-current liabilities			1,063				867
Total non-current liabilities			51,175				40,508
Total liabilities			104,087				88,989

 

 

4.1	Financial Statements

 

Balance Sheet of Parent Company (Cont’d)

30 September 2014

Prepared by: China Eastern Airlines Corporation Limited

Amounts expressed in RMB million

Unaudited

 

		Balance at
		the end of				Balance at
		the reporting				the beginning of
Item		period				the year
Owners’ equity (or shareholders’ equity):
Paid-up capital (or share capital)			12,674				12,674
Capital reserves			15,653				15,716
Undistributed profits			-956				-2,258
Total owners’ equity (or shareholders’ equity)			27,371				26,132
Total liabilities and owners’ equity (or shareholders’ equity)			131,458				115,121

 

Legal representative: Liu Shaoyong

Officer-in-charge of accounting: Ma Xulun

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

 

 

4.1	Financial Statements

 

Consolidated Income Statement 

Prepared by: China Eastern Airlines Corporation Limited

Amounts expressed in RMB million

Unaudited

  

												Amount				Amount
												from the				from the
								Amount				beginning				beginning of
				Amount				for the				of the year				last year to
				for the				corresponding				to the end of				the end of
				reporting				period of				the reporting				the reporting
				period				last year				period				period
				(from				(from				(from				(from
				July to				July to				January to				January to
Item				September)				September)				September)				September)
1.		Total revenue			26,144				25,633				68,735				67,112
		Of which: Revenue			26,144				25,633				68,735				67,112
2.		Total operating costs			24,833				23,301				69,778				65,363
		Of which: Operating costs			22,034				20,868				61,305				59,110
		Business taxes and surcharges			34				75				85				280
		Selling expenses			1,630				1,583				4,486				4,208
		Administrative expenses			717				750				1,972				2,141
		Finance expenses			417				25				1,925				-395
		Assets impairment loss			1								5				19
		Add: Gains arising from changes in fair value (loss indicated by “–”)			5				6				11				18
		Investment gains (loss indicated by “–”)			37				46				72				57
3.		Operating profit (loss indicated by “–”)			1,353				2,384				-960				1,824
		Add: Non-operating income			893				597				3,425				1,778
		Less: Non-operating expenses			12				3				26				8
4.		Total profits (total losses indicated by “–”)			2,234				2,978				2,439				3,594
		Less: Income tax expenses			141				123				300				203
5.		Net profit (net loss indicated by “–”)			2,093				2,855				2,139				3,391
		Net profit attributable to equity holders of parent company			2,044				2,788				2,058				3,412
		Minority interests			49				67				81				-21
6.		Earnings per share:
		(1)   Basic earnings per share (RMB/share)			0.1613				0.2200				0.1625				0.2894
		(1)   Diluted earnings per share (RMB/share)			0.1613				0.2200				0.1625				0.2894

 

Legal representative: Liu Shaoyong

Officer-in-charge of accounting: Ma Xulun

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

 

 

4.1

Financial Statements

 

Income Statement of Parent Company

Prepared by: China Eastern Airlines Corporation Limited

Amounts expressed in RMB million

Unaudited

 

												Amount				Amount
												from the				from the
								Amount				beginning				beginning of
				Amount				for the				of the year				last year to
				for the				corresponding				to the end of				the end of
				reporting				period of				the reporting				the reporting
				period				last year				period				period
				(from				(from				(from				(from
				July to				July to				January to				January to
Item				September)				September)				September)				September)
1.		Revenue			13,931				13,730				36,815				35,685
		Less:  Operating costs			11,471				10,875				32,654				31,324
		Business taxes and surcharges			7				10				19				35
		Selling expenses			1,020				1,010				2,723				2,653
		Administrative expenses			407				415				1,097				1,206
		Finance expenses			233				27				1,330				-317
		Assets impairment loss			–				–				4				15
		Add:  Gains arising from changes in fair value (loss indicated by “–”)			5				6				11				18
		Investment gains (loss indicated by “–”)			51				174				157				-164
2.		Operating profit (loss indicated by “–”)			849				1,573				-844				623
		Add: Non-operating income			586				406				2,167				1,318
		Less: Non-operating expenses			11				1				22				4
3.		Total profits (total losses indicated by “–”)			1,424				1,978				1,301				1,937
		Less: Income tax expenses			–				–				–				–
4.		Net profit (net loss indicated by “–”)			1,424				1,978				1,301				1,937

 

Legal representative: Liu Shaoyong

Officer-in-charge of accounting: Ma Xulun

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

 

 

4.1

Financial Statements

 

Consolidated Cash Flow Statement

From January to September 2014

Prepared by: China Eastern Airlines Corporation Limited

Amounts expressed in RMB million

Unaudited

 

				Amount from				Amount from
				the beginning of				the beginning
				the year to				of last year
				the end of				to the end of
				the reporting				the reporting
				period				period
				(from January to				(from January to
Item				September)				September)
1.		Cash flow from operating activities:
		Cash received from sales of goods and provision of labour services			72,191				69,790
		Other cash received from operating activities			7,068				4,729
		Sub-total of cash inflow from operating activities			79,259				74,519
		Cash paid for purchase of goods and receiving of labour services			52,553				45,648
		Cash paid to and for employees			11,672				10,303
		Taxes paid			2,763				2,184
		Other cash paid for operating activities			3,388				4,561
		Sub-total of cash outflow from operating activities			70,376				62,696
		Net cash flows from operating activities			8,883				11,823

 

 

4.1

Financial Statements

 

Consolidated Cash Flow Statement (Cont’d)

From January to September 2014

Prepared by: China Eastern Airlines Corporation Limited

Amounts expressed in RMB million

Unaudited

 

				Amount from				Amount from
				the beginning of				the beginning
				the year to				of last year
				the end of				to the end of
				the reporting				the reporting
				period				period
				(from January to				(from January to
Item				September)				September)
2.		Cash flow from investing activities:
		Cash received from disposal of investment			9				3
		Investment income in cash			55				5
		Net cash recovered from disposals of fixed assets, intangible assets and other long-term assets			739				34
		Other cash received from investing activities			2,227				1,594
		Sub-total of cash inflow from investing activities			3,030				1,636
		Amount paid in cash in relation to purchases of fixed assets, intangible assets and other long-term assets			17,648				14,216
		Investments paid in cash			102				258
		Other cash paid for investing activities			44				2,100
		Sub-total of cash outflow from investing activities			17,794				16,574
		Net cash flow from investing activities			-14,764				-14,938

 

 

4.1

Financial Statements

 

Consolidated Cash Flow Statement (Cont’d)

From January to September 2014

Prepared by: China Eastern Airlines Corporation Limited

Amounts expressed in RMB million

Unaudited

 

				Amount from				Amount from
				the beginning of				the beginning
				the year to				of last year
				the end of				to the end of
				the reporting				the reporting
				period				period
				(from January to				(from January to
Item				September)				September)
3.		Cash flow from fund raising activities:
		Proceeds received in cash from investments			–				3,622
		Cash received from borrowings			18,660				21,065
		Proceeds received in cash from bonds issuance			7,298				6,985
		Sub-total of cash inflow from fund raising activities			25,958				31,672
		Cash paid for repayment of indebtedness			17,126				22,652
		Cash payments for distribution of dividends, profits or payments of interest expense			1,166				1,213
		Other cash paid for fund raising activities			1,776				2,334
		Sub-total of cash outflow from fund raising activities			20,068				26,199
		Net cash flow from fund raising activities			5,890				5,473

 

 

4.1

Financial Statements

 

Consolidated Cash Flow Statement (Cont’d)

From January to September 2014

Prepared by: China Eastern Airlines Corporation Limited

Amounts expressed in RMB million

Unaudited

 

				Amount from				Amount from
				the beginning of				the beginning
				the year to				of last year
				the end of				to the end of
				the reporting				the reporting
				period				period
				(from January to				(from January to
Item				September)				September)
4.		Effect of changes in exchange rate on cash and cash equivalents			23				-6
5.		Net increase in cash and cash equivalents			32				2,352
		Add: Balance of cash and cash equivalents at the beginning of the period			1,995				2,512
6.		Balance of cash and cash equivalents at the end of the period			2,027				4,864

 

Legal representative: Liu Shaoyong

Officer-in-charge of accounting: Ma Xulun

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

 

 

4.1

Financial Statements

 

Cash Flow Statement of Parent Company

From January to September 2014

Prepared by: China Eastern Airlines Corporation Limited

Amounts expressed in RMB million

Unaudited

 

				Amount from				Amount from
				the beginning of				the beginning
				the year to				of last year
				the end of				to the end of
				the reporting				the reporting
				period				period
				(from January to				(from January to
Item				September)				September)
1.		Cash flow from operating activities:
		Cash received from sales of goods and provision of labour services			37,344				35,590
		Other cash received from operating activities			4,582				4,082
		Sub-total of cash inflow from operating activities			41,926				39,672
		Cash paid for purchase of goods and receiving of labour services			25,121				23,160
		Cash paid to and for employees			6,891				6,181
		Taxes paid			925				1,123
		Other cash paid for operating activities			3,088				2,961
		Sub-total of cash outflow from operating activities			36,025				33,425
		Net cash flows from operating activities			5,901				6,247

 

 

4.1

Financial Statements

 

Cash Flow Statement of Parent Company (Cont’d)

From January to September 2014

Prepared by: China Eastern Airlines Corporation Limited

Amounts expressed in RMB million

Unaudited

 

				Amount from				Amount from
				the beginning of				the beginning
				the year to				of last year
				the end of				to the end of
				the reporting				the reporting
				period				period
				(from January to				(from January to
Item				September)				September)
2.		Cash flow from investing activities:
		Cash received from disposal of investment			2				963
		Investment income in cash			87				213
		Net cash recovered from disposals of fixed assets, intangible assets and other long-term assets			495				2,382
		Other cash received from investing activities			65				84
		Sub-total of cash inflow from investing activities			649				3,642
		Amount paid in cash in relation to purchases of fixed assets, intangible assets and other long-term assets			10,191				10,028
		Investments paid in cash			541				47
		Other cash paid for investing activities			28				3,936
		Sub-total of cash outflow from investing activities			10,760				14,011
		Net cash flow from investing activities			-10,111				-10,369

 

 

4.1

Financial Statements

 

Cash Flow Statement of Parent Company (Cont’d)

From January to September 2014

Prepared by: China Eastern Airlines Corporation Limited

Amounts expressed in RMB million

Unaudited

 

				Amount from				Amount from
				the beginning of				the beginning
				the year to				of last year
				the end of				to the end of
				the reporting				the reporting
				period				period
				(from January to				(from January to
Item				September)				September)
3.		Cash flow from fund raising activities:
		Proceeds received in cash from investments			–				3,572
		Cash received from borrowings			23,085				18,405
		Proceeds received in cash from bonds issuance			4,000				4,790
		Sub-total of cash inflow from fund raising activities			27,085				26,767
		Cash paid for repayment of indebtedness			20,126				19,392
		Cash payments for distribution of dividends, profits or payments of interest expense			1,149				888
		Other cash paid for fund raising activities			1,061				2,206
		Sub-total of cash outflow from fund raising activities			22,336				22,486
		Net cash flow from fund raising activities			4,749				4,281
4.		Effect of changes in exchange rate on cash and cash equivalents			-1				-3

 

 

4.1

Financial Statements

 

Cash Flow Statement of Parent Company (Cont’d)

From January to September 2014

Prepared by: China Eastern Airlines Corporation Limited

Amounts expressed in RMB million

Unaudited

 

				Amount from				Amount from
				the beginning of				the beginning
				the year to				of last year
				the end of				to the end of
				the reporting				the reporting
				period				period
				(from January to				(from January to
Item				September)				September)
5.		Net increase in cash and cash equivalents			538				156
		Add: Balance of cash and cash equivalents at the beginning of the period			1,029				617
6.		Balance of cash and cash equivalents at the end of the period			1,567				773

 

Legal representative: Liu Shaoyong

Officer-in-charge of accounting: Ma Xulun

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