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 2016

 

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 27, 2016   By /s/ Wang Jian
        Name: Wang Jian
        Title: Company Secretary

 

 

 

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

 

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

 

 

2016 THIRD QUARTERLY REPORT

 

 

This announcement is made pursuant to Rule 13.09 and Rule 13.10B of the Listing Rules and the Inside Information Provisions (as defined under the Listing Rules) under Part XIVA of the Securities and Futures Ordinance.

 

The financial statements of the Company for the third quarter of 2016 were not audited, and were prepared in accordance with the PRC Accounting Standards.

 

1.IMPORTANT NOTICE

 

This announcement is made by China Eastern Airlines Corporation Limited (the “Company”) pursuant to the disclosure requirement under Rule 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “Listing Rules”) (which requires any issuer listed on The Stock Exchange of Hong Kong Limited (the “Hong Kong Stock Exchange”) whose securities are also listed on other stock exchange(s) to simultaneously inform the Hong Kong Stock Exchange of any information released to any of such other exchange(s) and to ensure that such information is released to the market in Hong Kong at the same time as it is released to the other market(s)). At the request of the Shanghai Stock Exchange, a similar announcement of the even date is being made by the Company in Shanghai pursuant to the relevant provisions of the Shanghai listing rules and regulations.

 

This quarterly report was prepared in accordance with the regulations as prescribed by the China Securities Regulatory Commission (the “CSRC”) in relation to disclosure of information in quarterly reports for listed companies, and is published simultaneously in Shanghai and Hong Kong. The financial statements of the Company for the third quarter of 2016 were not audited, and were prepared in accordance with the PRC Accounting Standards.

 

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

 

 – 1 – 

 

 

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

 

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 (accounting officer) Wu Yongliang

 

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

 

2.1Main financial data

 

Unit: million Currency: RMB

 

   As at the
end of the
reporting period		   As at the end
of last year		  

Increase/decrease
as at the end
of the reporting
period compared
with the end
of last year

(%)

 
             
Total assets   204,885    195,709    4.69 
Net assets attributable to shareholders of the listed company   50,418    35,137    43.49 

 

   From the
beginning of the
year to the end
of the reporting
period (from
January to
September)		   From the
beginning of last
year to the end
of the reporting
period last year
(from January
to September)		  

Increase/
decrease
compared
with the same
period last year

(%)

 
                
Net cash flows from operating activities   19,222    17,378    10.61 

 

 – 2 – 

 

 

   From the
beginning of the
year to the end
of the reporting
period (from
January to
September)		   From the
beginning of last
year to the end of
the reporting
period last year
(from January
to September)		  

Increase/
decrease
compared
with the same
period last year

(%)

 
             
Revenue   75,408    71,963    4.79 
Net profit attributable to shareholders of the listed company   6,694    5,334    25.50 
Net profit attributable to shareholders of the listed company after deducting non-recurring profit and loss   6,249    4,813    29.84 
              Increased by 0.6 
Weighted average return on net assets (%)   16.19    16.79    percentage points 
Basic earnings per share (RMB/share)   0.4928    0.4191    17.59 
Diluted earnings per share (RMB/share)   0.4928    0.4191    17.59 

 

  Note: Earnings per share of the Company is calculated based on the weighted average number of outstanding ordinary shares of the parent company. The weighted average number of outstanding ordinary shares of the parent company for the reporting period and for the corresponding period last year was 13.582 billion shares and 12.726 billion shares respectively.

 

Non-recurring profit and loss and relevant amounts

 

Unit: million Currency: RMB

 

Item  Amount for
the period
(from July to
September)		   Amount from
the beginning
of the year to
the end of the
reporting
period (from
January to
September)		 
         
Gains or losses from disposal of non-current assets   -6    38 
Non-operating incomes and expenses other than the above   188    611 
Effect on income tax   -43    -159 
Effect on minority interests (net of tax)   -14    -45 
           
Total   125    445 

 

 – 3 – 

 

 

2.2The 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   285,550 

 

   Shareholding of the 10 largest shareholders 
           Number of          
           shares with          
   Shareholdings       trading   Pledged or locked-up   
   as at the end       moratorium   Status of  Number of  Nature of
Name of shareholder (in full)  of the period   Proportion   held   shares  shares  shareholders
       (%)              
China Eastern Air Holding Company   5,072,922,927    35.06    0   Nil  0  State-owned legal person
(中國東方航空集團公司)                        
(“CEA Holding”)                        
                         
HKSCC NOMINEES LIMITED   4,182,641,289    28.91    0   Unknown  Unknown  Overseas legal person
                         
China National Aviation Fuel   586,300,252    4.05    465,838,509   Unknown  Unknown  State-owned legal person
Holding Company                        
(中國航空油料集團公司)                        
                         
DELTA AIR LINES INC   465,910,000    3.22    0   Unknown  Unknown  Overseas legal person
                         
Shanghai Licheng Information Technology Consulting Co., Ltd.   465,838,509    3.22    465,838,509   Unknown  Unknown  Domestic legal person
(上海勵程信息技術諮詢有限公司)                        
                         
CES Finance Holding Co., Ltd   457,317,073    3.16    0   Nil  0  State-owned legal person
(東航金控有限責任公司)                        
(“CES Finance”)                        
                         
China Securities Finance Corporation Limited   357,762,615    2.47    0   Unknown  Unknown  State-owned legal person
(中國證券金融股份有限公司)                        
                         
China COSCO Shipping Corporation Limited   232,919,254    1.61    232,919,254   Unknown  Unknown  State-owned legal person
(中國遠洋海運集團有限公司)                        
                         
Central Huijin Asset Management Ltd.   70,984,100    0.49    0   Unknown  Unknown  State-owned legal person
(中央匯金資產管理有限責任公司)                        
                         
Shanghai Alliance Investment Limited   65,615,429    0.45    0   Unknown  Unknown  State-owned legal person
(上海聯和投資有限公司)                        

 

 – 4 – 

 

 

Shareholding of the 10 largest holders of shares without trading moratorium

   Number of listed         
Name of shareholder  shares without trading
moratorium held		   Class and number of shares     
       Class   Number 
China Eastern Air Holding Company   5,072,922,927    RMB ordinary shares    5,072,922,927 
(中國東方航空集團公司)               
                
HKSCC NOMINEES LIMITED   4,182,641,289    Overseas listed foreign shares    4,182,641,289      
                
DELTA AIR LINES INC   465,910,000    Overseas listed foreign shares    465,910,000 
                
CES Finance Holding Co., Ltd   457,317,073    RMB ordinary shares    457,317,073 
(東航金控有限責任公司)               
                
China Securities Finance Corporation Limited   357,762,615    RMB ordinary shares    357,762,615 
(中國證券金融股份有限公司)               
                
China National Aviation Fuel Holding Company   120,461,743    RMB ordinary shares    120,461,743 
(中國航空油料集團公司)               
                
Central Huijin Asset Management Ltd.   70,984,100    RMB ordinary shares    70,984,100 
(中央匯金資產管理有限責任公司)               
                
Shanghai Alliance Investment Limited   65,615,429    RMB ordinary shares    65,615,429 
(上海聯和投資有限公司)               
                
National Social Security Fund 118   52,487,711    RMB ordinary shares    52,487,711 
(全國社保基金一一八組合)               
                
Sinotrans Air Transportation Development Company Limited   51,641,800    RMB ordinary shares    51,641,800 
(中外運空運發展股份有限公司)               

 

Description of connected relationship or activities in concert among the above shareholders Among the 4,182,641,289 H shares held by HKSCC NOMINEES LIMITED, 2,626,240,000 shares are held by CES Global Holdings (Hong Kong) Limited (“CES Global”) in the capacity of beneficial owner; CEA Holding owns 100% equity interest in CES Finance; CES Finance owns 100% equity interest in CES Global; thus, CEA Holding indirectly owns 100% equity 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.
   
Description of preference shareholders with voting rights restored and the number of shares held Not applicable

 

2.3The total number of the Company’s preference shareholders and the shareholding of the 10 largest preference shareholders and the shareholding of the 10 largest preference holders of shares without trading moratorium as at the end of the reporting period

 

Not applicable

 

 – 5 – 

 

 

3.IMPORTANT MATTERS

 

3.1Details of and reasons for the substantial changes in main items of financial statements and financial indicators of the Company

 

Item  Change in the
reporting
period
compared
to the same
period last year		   Reason for the Change
   (%)    
        
Finance costs   –20.27   Primarily due to remarkable appreciation of the exchange rate of USD against RMB since the third quarter last year, resulting in higher exchange loss during the same period last year
         
Assets impairment loss   –97.81   Primarily due to impairment in financial  assets available-for-sale during the same period last year, resulting  in assets impairment  loss of RMB137 million during the same period last year. The assets impairment loss for the reporting period was RMB3 million
         
Investment income   74.83   Primarily due to a gain on disposal of financial assets available-for-sale and an increase in profit of the associates of the Company, resulting in an investment income of RMB264 million for the reporting period. The investment income during the same period last year was RMB151 million
         
Non-operating expenses   –76.34   Primarily due to removal of operational base of the Company’s subsidiary during the same period last year, resulting in a loss on retirement of properties of RMB93 million during the same period last year. The non-operating expenses for the reporting period was RMB22 million.
         
Total profit   35.35   Primarily due to a stable increase in passenger load factor in light of the Company’s efforts in seizing market opportunities, strengthening marketing and striking a balance between the overall demand and supply. At the same time, the Company exercised stringent cost control and continually optimized the Company’s debt structure
         
Income tax   88.96   Primarily due to an increase in income tax payable of the Company as a result of an increase in total profit

 

 – 6 – 

 

 

Item  Change in the
reporting
period
compared
to the same
period last year		   Reason for the Change
   (%)    
        
Monetary Capital   –84.97   Primarily due to a lower balance as at the end of the reporting period as a result of a higher utilization rate of funds by the Company
         
Prepayments   317.40   Primarily due to an increase in prepayments for procurement of the Company during the reporting period
         
Financial assets available-for- sale   50.00   Primarily due to changes in fair value of financial assets available-for-sale of the Company during the reporting period
         
Other non-current assets   –40.86   Primarily due to a decrease in discounts recorded of the Company
         
Short-term borrowings   –45.50   Primarily due to the repayment of certain short- term borrowings by optimizing the Company’s debt structure through ways of financing, such as issuance of bonds, medium-term notes and super short-term commercial paper, during the reporting period
         
Bills payable   –95.63   Primarily due to a decrease in settlement by way of bank acceptance bill of the Company during the reporting period
         
Tax payable   50.89   Primarily due to an increase in the Company’s total profit, resulting in an increase in enterprise income tax payable during the reporting period
         
Non-current liabilities due within one year   –61.85   Primarily due to the repayment by the Company of certain long-term borrowings denominated in US dollar and long-term payables due within one year by optimizing the Company’s debt structure through ways of financing,  such as non-public issuance of shares, issuance of bonds, medium-term notes and super short-term commercial paper, during the reporting period
         
Other current liabilities   80.65   Primarily  due to the debt restructuring  of the Company through increased issuance of super short- term commercial paper during the reporting period
         
Long-term borrowings   –59.66   Primarily due to the repayment by the Company of certain long-term borrowings denominated in US dollar by optimizing the Company’s debt structure through ways of financing, such as issuance of bonds and medium-term notes, during the reporting period
         
Bonds payable   77.08   Primarily due to the issuance of medium-term notes and bonds denominated  in Korean Won by the Company during the reporting period
         
Capital reserves   36.93   Primarily due to the completion of non-public issuance of A shares of the Company to increase capital reserves during the reporting period

 

 – 7 – 

 

 

Item  Change in the
reporting
period
compared
to the same
period last year		   Reason for the Change
   (%)    
         
Undistributed profits   138.82   Primarily due to the profit recorded  during the reporting period and a significant increase in total profit of the Company as compared to last year

 

3.2Analysis of the progress of significant events and their effects and proposed solutions

 

(1)Non-public Issuance of A Shares

 

As approved by the “Zheng Jian Xu Ke [2016] No.8 Approval of the Non- public Issuance of A Shares by China Eastern Airlines Corporation Limited” ( 證 監 許 可 [2016]8 號《 關 於 核 准 中 國 東 方 航 空 股 份 有 限 公 司 非 公 開 發 行 股 票 的 批 覆 》) issued by the CSRC, the Company issued 1,327,406,822 RMB-denominated ordinary shares (A Shares) at an issue price of RMB6.44 per share by way of non-public issuance to Shanghai Licheng Information Technology Consulting Co., Ltd. ( 上海勵程信息技術諮詢 有限公司 ), China National Aviation Fuel Holding Company ( 中國航空油 料集團公司 ), China COSCO Shipping Corporation Limited ( 中國遠洋海 運集團有限公 司 ) and Caitong Fund Management Co., Ltd. ( 財通基金 管理有限公司 ), raising a total of RMB8,548,499,933.68. After deducting the issue expenses of RMB8,525,399.97, the net proceeds amounted to RMB8,539,974,533.71. The said proceeds were remitted to the Company’s account on 27 June 2016 and verified by Ernst & Young Hua Ming LLP ( 安永華明會計師事務 所 ( 特殊普通合 夥 )) which issued the capital verification report (Ernst& Young Hua Ming (2016) Yan Zi No. 61056687_B02) on 28 June 2016.

 

On 4 July 2016, the Resolution on the Use of Proceeds Raised from the Non-public Issuance of A Shares of the Company to Exchange with Self- raised Funds Funded in Advance was considered and approved on the second ordinary meeting of the eighth session of the Board of the Company, which consented to the Company’s use of net proceeds from the non-public issuance of A Shares in the amount of RMB8,539,974,533.71, on a 4:1 ratio, to exchange with the self-raised funds used for payment in advance for the purchase of 28 aircraft and the repayment of loans from financial institutions. For details, please refer to the announcement published by the Company in China Securities Journal and Shanghai Securities News and on the website of Shanghai Stock Exchange on 5 July 2016 and the overseas regulatory announcement published by the Company on the website of the Hong Kong Stock Exchange dated 4 July 2016.

 

For details of the use of proceeds from the non-public issuance of A Shares of the Company, please refer to the “Report on the Deposit and Use of Proceeds”( 募 集 資 金 存 放 與 使 用 情 況 報 告 ) to be published by the Company in China Securities Journal and Shanghai Securities News and on the website of Shanghai Stock Exchange.

 

 – 8 – 

 

 

(2)2016 Interim Profit Distribution

 

On 30 August 2016, the Board considered and approved the 2016 interim profit distribution proposal in its fourth regular meeting in 2016. It was recommended that the 2016 interim distribution shall be RMB0.51 per ten shares (inclusive of tax) in cash. Based on the total share capital of 14,467,585,682 shares of the Company, the total distribution amounted to approximately RMB738 million (inclusive of tax) in cash. The above interim profit distribution proposal has been considered and approved at the Company’s first extraordinary general meeting in 2016 held on 27 October 2016. For details, please refer to the announcements published by the Company in China Securities Journal and Shanghai Securities News and on the website of Shanghai Stock Exchange on 31 August 2016 and 28 October 2016, respectively, and the announcements published by the Company on the website of the Hong Kong Stock Exchange dated 30 August 2016 and 27

October 2016.

 

(3)2017–2019 Daily Connected Transactions

 

On 30 August 2016, the Company signed a framework agreement for daily connected transactions with its related party, China Eastern Air Holding Company, and its controlled subsidiaries for a term of 3 years (1 January 2017 to 31 December 2019) in respect of the daily connected transactions and renewed the caps of the daily connected transactions for 2017 to 2019, among which the daily connected transactions in respect of financial services and catering services were approved at the Company’s 2016 first extraordinary general meeting. On the same date, the Company renewed the caps of the daily connected transactions for aviation information technology service(2017-2019) with its related party, TravelSky Technology Limited. For details, please refer to the announcements published by the Company in China Securities Journal and Shanghai Securities News and on the website of Shanghai Stock Exchange on 31 August 2016 and 28 October 2016, respectively, and the announcements published by the Company on the website of the Hong Kong Stock Exchange dated 30 August 2016 and 27

October 2016.

 

(4)Public Issuance of Corporate Bonds

 

On 6 September 2016, the Company received from CSRC the “Approval on the Public Issuance of Corporate Bonds to Qualified Investors by China Eastern Airlines Corporation Limited” (Zheng Jian Xu Ke [2016] No.2002) (《關 於核准中國東方航空股份有限公司向合格投資者公開發行公司債 券的批覆》( 證監許可[2016]2002 號)), which approved the Company to publicly issue the corporate bonds with an aggregate amount of not exceeding RMB10.3 billion to qualified investors within 24 months from the date of the CSRC’s approval. For details, please refer to the announcement published by the Company in China Securities Journal and Shanghai Securities News and on the website of Shanghai Stock Exchange at www.sse.com.cn on 7 September 2016 and the overseas regulatory announcement published by the Company on the website of the Hong Kong Stock Exchange dated 6 September 2016.

 

 – 9 – 

 

 

For details of the issuance of 2016 corporate bonds (first tranche) of the Company, please refer to the announcement published by the Company in China Securities Journal and Shanghai Securities News and on the website of Shanghai Stock Exchange on 28 October 2016 and the overseas regulatory announcement published by the Company on the website of the Hong Kong Stock Exchange dated 27 October 2016.

 

(5)Issuance of Bonds Denominated in Korean Won (“KRW Bonds”)

 

On 28 September 2016, the Company completed the issuance of KRW Bonds, including, KRW120 billion of bank–guaranteed private placement bonds which were guaranteed by Korea Development Bank with a maturity of 3 years, nominal value of KRW5 billion and interest rate of 2.05% per annum; and KRW55 billion of senior private placement bonds with a maturity of 3 years, nominal value of KRW5 billion and interest rate of 2.85% per annum. For details, please refer to the announcement published by the Company in China Securities Journal and Shanghai Securities News and on the website of Shanghai Stock Exchange at www.sse.com.cn on 29 September 2016 and the overseas regulatory announcement published by the Company on the website of the Hong Kong Stock Exchange dated 28 September 2016.

 

3.3The status of implementation of the matters undertaken by the Company and shareholders holding more than 5% interests

 

                        Whether the
                        undertaking
                        has been
                    Whether   strictly
                    there is an   implemented
Background of   Type of   Undertaking       Time and term of   implementation   in a timely
undertaking   undertaking   party   Content of undertaking   undertaking   period   manner
                         
Undertaking in relation to refinancing   To resolve defects in land and other property ownership   CEA Holding   Due to historical  reasons, some of the land and properties injected by CEA Holding into the Company had not yet been transferred to the name of the Company. With regard to 17 properties which are located in Guangzhou and Shenzhen (with an aggregate GFA of approximately 1,996.51 square meters), CEA Holding undertook that it shall, resolve defects in building ownership by completing procedures for transferring property  ownership to the Company, or transferring the relevant  gains to the Company upon external disposal within 3 years; and CEA Holding shall bear the corresponding  obligations in relation to the losses caused to the Company as a result of the failure of CEA Holding  in completing  the relevant procedures  for transferring  the relevant property ownership in a timely manner.   Time of undertaking: June 2014; term of undertaking: from 27 June 2014 to 30 June 2017   Yes   Yes

 

 – 10 – 

 

 

 

                        Whether the
                        undertaking
                        has been
                    Whether   strictly
                    there is an   implemented
Background of   Type of   Undertaking       Time and term of   implementation   in a timely
undertaking   undertaking   party   Content of undertaking   undertaking   period   manner
                         
    To resolve defects in land and other property ownership   CEA Holding   Due to historical  reasons, some of the land and property injected by CEA Holding into the Company had not yet been transferred to the name of the Company. With regard to 76 properties which are located in the Eastern District of Shanghai Hongqiao Airport  (the  relevant  land  ownership of which has been transferred to the Company) (with an aggregate GFA of approximately 146,700 square meters), relevant construction procedures were not completed for the buildings due to historical reasons, and therefore it is currently difficult to carry out ownership transfer. As a result, CEA Holding undertook that it shall, strive for opportunity to develop in the Eastern District of Shanghai Hongqiao Airport, and resolve defects in relevant building ownership by completing  relevant procedures for transferring building ownership to the Company in batches upon fulfillment of conditions or through land replacement, the expected final completion time of which is approximately 10 to 12 years. The progress of resolving the above defects in property ownership and its results are subject to the overall development policy of the Eastern District of Shanghai Hongqiao Airport and its progress of implementation. CEA Holding shall bear the corresponding obligations in relation to the losses caused to the Company as a result of the failure of CEA Holding in completing the relevant procedures for transferring the relevant property ownership in a timely manner.   Time of undertaking: June 2014; term of undertaking: from 27 June 2014 to 30 June 2026   Yes   Yes
                         
Other undertaking   Trading moratorium of shares   CEA Holding/ CES Finance   CEA Holding and CES Finance undertook that they will not dispose of the 241,547,927 A shares  and 457,317,073  A shares  held by each of them, within 24 months from the lifting of the trading moratorium  on 18 April 2016.   Time of undertaking: April 2016; term of undertaking: from 18 April 2016 to 17 April 2018   Yes   Yes

 

 – 11 – 

 

 

3.4Warning of and reasons for any expected accumulated losses from the beginning of the year to the end of the following reporting period or substantial changes in profitability compared to the same period last year

 

Not applicable

 

  By order of the Board
  CHINA EASTERN AIRLINES CORPORATION LIMITED
Liu Shaoyong
  Chairman
  Shanghai, the People’s Republic of China
  27 October 2016

 

As at the date of this announcement, the directors of the Company include Liu Shaoyong (Chairman), Ma Xulun (Vice Chairman, President), Li Yangmin (Director, Vice President), Xu Zhao (Director), Gu Jiadan (Director), Tang Bing (Director, Vice President), Tian Liuwen (Director, Vice President), Li Ruoshan (Independent non-executive Director), Ma Weihua (Independent non-executive Director), Shao Ruiqing (Independent non-executive Director) and Cai Hong Ping (Independent non-executive Director).

 

 – 12 – 

 

 

4.APPENDICES

 

4.1Financial Statements

 

China Eastern Airlines Corporation Limited

Consolidated and Company’s Balance Sheet as at 30 September 2016

(Unless otherwise stated, amounts are expressed in RMB million)

 

Assets  30 September
2016
Consolidated		   31 December
2015
Consolidated		   30 September
2016
Company		   31 December
2015
Company		 
                 
Current assets                    
Monetary capital   1,370    9,115    984    8,042 
Trade receivables   2,651    2,867    4,587    6,725 
Prepayments   3,143    753    2,124    123 
Dividends receivable   63    22    63    22 
Other receivables   4,374    4,881    15,835    9,784 
Inventory   2,276    2,056    44    38 
Non-current assets held for sale   437    594    –    – 
Non-current assets due within one year   178    150    103    66 
Other current assets   3,278    2,640    3,311    2,768 
                     
Total current assets   17,770    23,078    27,051    27,568 
                     
Non-current assets                    
Hedge instruments   5    45    5    45 
Financial assets available for sale   678    452    604    388 
Long-term equity investment   2,049    2,061    16,616    16,627 
Investment properties   289    294    –    – 
Fixed assets   145,611    131,430    94,994    83,155 
Construction in progress   23,596    22,978    22,290    22,223 
Intangible assets   2,378    2,346    1,381    1,391 
Goodwill   9,028    9,028    9,028    9,028 
Long-term deferred expenses   2,191    1,904    1,535    1,155 
Deferred income tax assets   196    243    90    137 
Other non-current assets   1,094    1,850    1,059    1,780 
                     
Total non-current assets   187,115    172,631    147,602    135,929 
                     
Total assets   204,885    195,709    174,653    163,497 

 

 – 13 – 

 

 

4.1Financial Statements (Cont’d)

 

China Eastern Airlines Corporation Limited

Consolidated and Company’s Balance Sheet as at 30 September 2016 (Cont’d)

(Unless otherwise stated, amounts are expressed in RMB million)

 

Liabilities and shareholders’
equity		  30 September
2016
Consolidated		   31 December
2015
Consolidated		   30 September
2016
Company		   31 December
2015
Company		 
                 
Current liabilities                    
Short-term borrowings   4,108    7,537    254    5,287 
Hedge instruments   1    4    1    4 
Notes payable   35    800    35    800 
Trade payables   11,359    9,810    13,207    12,014 
Account collected in advance   985    1,059    609    749 
Settlement of vouchers   5,379    5,841    5,080    5,535 
Staff remuneration payable   3,128    3,998    1,532    1,856 
Tax payable   2,556    1,694    1,428    851 
Interest payable   878    758    661    496 
Other payables   4,592    4,065    14,452    16,772 
Non-current liabilities due within one year   8,895    23,318    5,297    16,716 
Other current liabilities   28,000    15,500    28,000    15,500 
                     
Total current liabilities   69,916    74,384    70,556    76,580 
                     
Non-current liabilities                    
Long-term borrowings   8,233    20,408    6,184    15,942 
Hedge instruments   213    97    213    97 
Bonds payable   14,326    8,090    14,326    4,792 
Long-term payables   53,689    50,036    34,926    29,400 
Long-term staff remuneration payable   2,722    2,790    2,030    2,064 
Special items payable   143    143    122    122 
Deferred income tax liabilities   30    8    40    16 
Other non-current liabilities   2,165    2,102    1,180    1,155 
                     
Total non-current liabilities   81,521    83,674    59,021    53,588 
                     
Total liabilities   151,437    158,058    129,577    130,168 

 

 – 14 – 

 

 

4.1Financial Statements (Cont’d)

 

China Eastern Airlines Corporation Limited

Consolidated and Company’s Balance Sheet as at 30 September 2016 (Cont’d)

(Unless otherwise stated, amounts are expressed in RMB million)

 

Liabilities and shareholders’
equity		  30 September
2016
Consolidated		   31 December
2015
Consolidated		   30 September
2016
Company		   31 December
2015
Company		 
                 
Shareholders’ equity                    
Share capital   14,467    13,140    14,467    13,140 
Capital reserves   26,766    19,547    27,476    20,257 
Other comprehensive income   (2,515)   (2,556)   (1,892)   (1,932)
Surplus reserves   184    184    184    184 
Undistributed profits   11,516    4,822    4,841    1,680 
                     
Total equity attributable to shareholders of parent company   50,418    35,137           
                     
Minority interests   3,030    2,514    –    – 
                     
Total shareholders’ equity   53,448    37,651    45,076    33,329 
                     
Total liabilities and shareholders’ equity   204,885    195,709    174,653    163,497 

 

Person-in-charge of the Company: Liu Shaoyong

Officer-in-charge of accounting: Ma Xulun

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

 

 – 15 – 

 

 

4.1Financial Statements (Cont’d)

 

China Eastern Airlines Corporation Limited

Consolidated and Company’s Income Statement for the Period from January to September 2016

(Unless otherwise stated, amounts are expressed in RMB million)

 

     

Jul to Sep

2016

Consolidated 

   Jul to Sep
2015
Consolidated		  

Jan to Sep

2016

Consolidated 

   Jan to Sep
2015
Consolidated		  

Jul to Sep

2016

Company

   Jul to Sep
2015
Company 		  

Jan to Sep

2016

Company

   Jan to Sep
2015
Company		 
          (Restated)       (Restated)       (Restated)       (Restated) 
                                    
1.  Revenue   29,076    27,652    75,408    71,963    16,274    15,137    42,071    38,925 
   Less:    Operating costs   22,135    20,425    59,870    57,365    12,494    10,880    33,605    30,715 
   Business taxes and surcharges   35    55    107    135    7    6    16    15 
   Selling expenses   1,350    1,366    4,122    4,136    966    965    2,985    2,831 
   Administrative expenses   785    701    2,103    1,930    444    382    1,198    1,064 
   Finance expenses/(income), net   1,165    3,794    3,960    4,967    826    2,729    2,779    3,545 
   Assets impairment loss   –    1    3    137    –    –    –    100 
   Add:    Gains arising from changes in fair value   –    2    2    6    –    2    2    6 
   Investment gains   53    38    264    151    53    49    358    246 
                                            
2.  Operating profit   3,659    1,350    5,509    3,450    1,590    226    1,848    907 
   Add: Non-operating income   1,235    1,024    3,967    3,628    758    468    2,251    2,011 
   Less: Non-operating expenses   14    79    22    93    6    3    10    6 
                                            
3.  Total profits   4,880    2,295    9,454    6,985    2,342    691    4,089    2,912 
   Less: Income tax expenses   1,149    328    2,190    1,159    606    72    928    415 
                                            
4.  Net profit   3,731    1,967    7,264    5,826    1,736    619    3,161    2,497 
                                            
   –  Net profit attributable to shareholders of the parent company   3,461    1,770    6,694    5,334                     
                                            
   –  Minority interests   270    197    570    492                     
                                            
5.  Earnings per share                                        
  Basic earnings per share (RMB)   0.24    0.14    0.49    0.42                     
                                            
   Diluted earnings per share (RMB)   0.24    0.14    0.49    0.42                     

 

 – 16 – 

 

 

4.1Financial Statements (Cont’d)

 

China Eastern Airlines Corporation Limited

Consolidated and Company’s Income Statement for the Period from January to September 2016

(Unless otherwise stated, amounts are expressed in RMB million)

 

     

Jul to Sep

2016

Consolidated

  

Jul to Sep

2015

Consolidated

  

Jan to Sep

2016

Consolidated

  

Jan to Sep

2015

Consolidated

  

Jul to Sep

2016

Company 

  

Jul to Sep

2015

Company

  

Jan to Sep

2016

Company 

  

Jan to Sep

2015

Company

 
          (Restated)       (Restated)       (Restated)       (Restated) 
                                    
6.  Other comprehensive income, net of tax                                        
   Other comprehensive income that cannot be reclassified into profit or loss in subsequent accounting periods Changes arising from re-measuring net assets or net liabilities of defined benefit plan        (138)   30    (214)        (106)   34    (158)
                                            
   Other comprehensive income that will be reclassified into profit or loss in subsequent accounting periods when meeting the prescribed conditions Share of other comprehensive income of investees to be reclassified into profit and loss in subsequent accounting periods under the equity method when meeting the prescribed conditions             (7)   4              (7)   4 
                                            
   Gain or loss from fair value movements of available-for-sale financial assets   83    (25)   118    42    83    (25)   110    35 
                                            
   Effective portion of gains or losses from cash flow hedge instruments   81    (127)   (97)   (119)   81    (127)   (97)   (119)
                                            
   Other comprehensive income, net of tax   164    (290)   44    (287)   164    (258)   40    (238)
                                            
   Of which:                                        
   Other comprehensive income, net of tax, attributable to shareholders of the parent company   164    (290)   41    (290)                    
                                            
   Other comprehensive income, net of tax, attributable to minority interests             3    3                     

 

 – 17 – 

 

 

4.1Financial Statements (Cont’d)

 

China Eastern Airlines Corporation Limited

Consolidated and Company’s Income Statement for the Period from January to September 2016

(Unless otherwise stated, amounts are expressed in RMB million)

 

     

Jul to Sep

2016

Consolidated 

   Jul to Sep
2015
Consolidated 		  

Jan to Sep

2016

Consolidated 

   Jan to Sep
2015
Consolidated 		  

Jul to Sep

2016

Company 

   Jul to Sep
2015
Company		  

Jan to Sep

2016

Company 

   Jan to Sep
2015
Company 		 
          (Restated)       (Restated)       (Restated)       (Restated) 
                                    
7.  Total comprehensive income   3,895    1,677    7,308    5,539    1,900    361    3,201    2,259 
   Of which:                                        
   Total comprehensive income attributable to shareholders of the parent company   3,625    1,480    6,735    5,044                     
   Total comprehensive income attributable to minority interests   270    197    573    495                     

 

Person-in-charge of the Company: Liu Shaoyong

Officer-in-charge of accounting: Ma Xulun

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

 

 – 18 – 

 

 

 

4.1Financial Statements (Cont’d)

 

China Eastern Airlines Corporation Limited

Consolidated and Company’s Cash Flow Statement for the Period from January to September 2016

(Unless otherwise stated, amounts are expressed in RMB million)

 

Item     Jan to Sep   Jan to Sep   Jan to Sep   Jan to Sep 
      2016   2015   2016   2015 
      Consolidated   Consolidated   Company   Company 
          (Restated)         
                    
1.  Cash flow from operating activities                
   Cash received from sales of goods and provision of labour services   79,314    76,448    44,577    38,629 
   Other cash received from operating activities   9,830    8,242    7,320    10,680 
                        
   Sub-total of cash inflow from operating activities   89,144    84,690    51,897    49,309 
                        
   Cash paid for purchase of goods and receiving of labour services   (48,608)   (48,840)   (26,600)   (22,305)
   Cash paid to and for employees   (13,703)   (12,920)   (6,739)   (6,726)
   Taxes paid   (2,840)   (1,390)   (1,256)   (1,064)
   Other cash paid for operating activities   (4,771)   (4,162)   (10,107)   (4,554)
                        
   Sub-total of cash outflow from operating activities   (69,922)   (67,312)   (44,702)   (34,649)
                        
   Net cash flows from operating activities   19,222    17,378    7,195    14,660 
                        
2.  Cash flow from investing activities                    
   Cash received from disposal of investment   –    49    –    49 
   Investment income in cash   138    57    138    119 
   Net cash recovered from disposals of fixed assets, intangible assets and other long-term assets   587    2,355    242    1,594 
   Other cash received from investing activities   53    540    50    44 
                        
   Sub-total of cash inflow from investing activities   778    3,001    430    1,806 

 

 – 19 – 

 

  

4.1Financial Statements (Cont’d)

 

China Eastern Airlines Corporation Limited

Consolidated and Company’s Cash Flow Statement for the Period from January to September 2016

(Unless otherwise stated, amounts are expressed in RMB million)

 

Item     Jan to Sep   Jan to Sep   Jan to Sep   Jan to Sep 
      2016   2015   2016   2015 
      Consolidated   Consolidated   Company   Company 
          (Restated)         
                        
   Amount paid in cash in relation to purchases of fixed assets, intangible assets and other long-term assets   (24,485)   (22,665)   (22,826)   (18,623)
   Investments paid in cash   0    (413)   0    (462)
   Other cash paid for investing activities   (4)   0    0    0 
                        
   Sub-total of cash outflow from investing activities   (24,489)   (23,078)   (22,826)   (19,085)
                        
   Net cash flow from investing activities   (23,711)   (20,077)   (22,396)   (17,279)
                        
3.  Cash flow from fund raising activities                    
   Proceeds received in cash from investments   8,540    2,870    8,540    2,870 
   Cash received from borrowings   89,508    37,763    85,340    36,317 
   Proceeds received in cash from bonds issuance   9,533    –    9,533    – 
   Other cash received in relation to fund raising activities   40    –    40    – 
                        
   Sub-total of cash inflow from fund raising activities   107,621    40,633    103,453    39,187 
                        
   Cash paid for repayment of indebtedness   (99,907)   (33,379)   (89,543)   (32,603)
   Cash payments for distribution of dividends, profits or payments of interest expense   (2,509)   (1,842)   (1,878)   (1,675)
   Other cash paid for fund raising activities   (8,574)   (3,169)   (4,011)   (2,675)
                        
   Sub-total of cash outflow from fund raising activities   (110,990)   (38,390)   (95,432)   (36,953)
                        
   Net cash flow from fund raising activities   (3,369)   2,243    8,021    2,234 

 

 – 20 – 

 

 

4.1Financial Statements (Cont’d)

 

China Eastern Airlines Corporation Limited

Consolidated and Company’s Cash Flow Statement for the Period from January to September 2016

(Unless otherwise stated, amounts are expressed in RMB million)

 

Item     Jan to Sep   Jan to Sep   Jan to Sep   Jan to Sep 
      2016   2015   2016   2015 
      Consolidated   Consolidated   Company   Company 
          (Restated)         
                    
4.  Effect of changes in exchange rate on cash and cash equivalents   105    12    96    5 
                        
5.  Net decrease in cash and cash equivalents   (7,753)   (444)   (7,084)   (380)
   Add: Balance of cash and cash equivalents at the beginning of the year   9,080    1,355    8,042    866 
                        
6.  Balance of cash and cash equivalents at the end of the period   1,327    911    958    486 

 

Person-in-charge of the Company: Liu Shaoyong

Officer-in-charge of accounting: Ma Xulun

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

 

 – 21 –