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 2017

 

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 26, 2017		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.

 

 

 

2017 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 2017 were not audited, and were prepared in accordance with the China Accounting Standards for Business Enterprises.

 

1.

IMPORTANT NOTICE

 

This announcement is made by China Eastern Airlines Corporation Limited (the “Company”) pursuant to the disclosure requirement under Rule 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “Listing Rules”) (which requires any issuer listed on The Stock Exchange of Hong Kong Limited (the “Hong Kong Stock Exchange”) whose securities are also listed on other stock exchange(s) to simultaneously inform the Hong Kong Stock Exchange of any information released to any of such other exchange(s) and to ensure that such information is released to the market in Hong Kong at the same time as it is released to the other market(s)). At the request of the Shanghai Stock Exchange, a similar announcement of the even date is being made 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 2017 were not audited, and were prepared in accordance with the China Accounting Standards for Business Enterprises.

 

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

 

All directors of the Company attended the meeting of the Board to consider this quarterly report.

 

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

 

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

 

2.

MAIN FINANCIAL DATA AND CHANGES IN SHAREHOLDERS OF THE COMPANY

 

2.1

Main financial data

 

Unit: million Currency: RMB

  

Increase/

decrease as

at the end

of the

As at

reporting

the end

period

of the

As at

compared

reporting

the end of

with the end

period

last year

of last year

(%)

Total assets

223,652

210,051

6.48

Net assets attributable to shareholders of the listed company

54,552

47,186

15.61

 

From the

From the

beginning of

beginning of

last year to

the year to

the end of

Increase/

the end of

the reporting

decrease

the reporting

period last

compared

period (from

year (from

with the

January to

January to

same period last

September)

September)

year (%)

Net cash flows from operating activities

14,528

19,222

–24.42

 

From the

From the

beginning of

beginning of

last year to

the year to

the end of

Increase/

the end of

the reporting

decrease

the reporting

period last

compared

period (from

year (from

with the

January to

January to

same period last

September)

September)

year (%)

Revenue

77,505

75,408

2.78

Net profit attributable to shareholders of the listed company

7,915

6,694

18.24

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

5,649

6,249

–9.60

Weighted average return on net assets (%)

Decreased by

15.45

16.19

0.74 pts

Basic earnings per share (RMB/share)

0.5471

0.4928

11.02

Diluted earnings per share (RMB/share)

0.5471

0.4928

11.02

 

Note:

The calculation of earnings per share of the Company is 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 14.467 billion shares and 13.582 billion shares respectively.

 

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)				Description
Gains from disposal of non-current assets			27				25
Gains from disposal of long-term investments							12
Gains from disposal of subsidiaries							1,754			Transfer of equity interest in Eastern Air Logistics Co., Ltd (“Eastern Logistics”)
Government grants recognized in profit or loss of the current period, excluding those closely related to the normal operation of the Company and granted on an ongoing basis in fixed amount or fixed quota in accordance with government policies and regulations			100				676
Non-operating incomes and expenses other than the above			158				277
Effect on minority interests (net of tax)			–15				–43
Effect on income tax			–70				–435
Total			200				2,266

 

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 (30 September 2017)

 

Unit: Shares

 

Total number of shareholders

275,947

 

Shareholding of the 10 largest shareholders

Shareholdings

Number of shares

Pledged or locked-up

as at the end of

with trading

Status of

Number of

Nature of

Name of shareholder (in full)

the period

Proportion

moratorium held

shares

shares

shareholders

(%)

China Eastern Air Holding Company (中國東方航空集團公司) (“CEA Holding”)

5,072,922,927

35.06

%

–

Nil

–

State-owned legal person

HKSCC NOMINEES LIMITED

4,182,443,289

28.91

%

–

Pledged

Note

960,000,000

Overseas legal person

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

612,745,734

4.24

%

–

Nil

–

State-owned legal person

China National Aviation Fuel Holding Company (中國航空油料集團公司)

504,767,895

3.49

%

–

Nil

–

State-owned legal person

DELTA AIR LINES INC

465,910,000

3.22

%

–

Nil

–

Overseas legal person

Shanghai Licheng Information Technology Consulting Co., Ltd. (上 海勵程信息技術諮詢有限公司)

465,838,509

3.22

%

–

Pledged

465,838,509

Domestic non- state-owned legal person

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

457,317,073

3.16

%

–

Nil

–

State-owned legal person

China COSCO Shipping Corporation Limited (中國遠洋海運集團有限公司)

232,919,254

1.61

%

–

Nil

–

State-owned legal person

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

70,984,100

0.49

%

–

Nil

–

State-owned legal person

Shanghai Alliance Investment Limited (上海聯和投資有限公司)

65,615,429

0.45

%

–

Nil

–

State-owned legal person

 

Shareholding of the 10 largest holders of shares without trading moratorium

		Number of
		listed shares
		without trading
Name of shareholder		moratorium held				Class and number of shares
						Class		Number
China Eastern Air Holding Company (中國東方航空集團公司)			5,072,922,927			RMB ordinary shares			5,072,922,927
HKSCC NOMINEES LIMITED			4,182,443,289			Overseas listed foreign shares			4,182,443,289
China Securities Finance Corporation Limited (中國證券金融股 有限公司)			612,745,734			RMB ordinary shares			612,745,734
China National Aviation Fuel Holding Company (中國航空油料集團公司)			504,767,895			RMB ordinary shares			504,767,895
DELTA AIR LINES INC			465,910,000			Overseas listed foreign shares			465,910,000
Shanghai Licheng Information Technology Consulting Co., Ltd. (上海勵程信息 技術諮詢有限公司)			465,838,509			RMB ordinary shares			465,838,509
CES Finance Holding Co., Ltd. (東航金控有限責任公司)			457,317,073			RMB ordinary shares			457,317,073
China COSCO Shipping Corporation Limited (中國遠洋海運集團有限公司)			232,919,254			RMB ordinary shares			232,919,254
Central Huijin Asset Management Ltd. (中央匯金資 管理有限責任公司)			70,984,100			RMB ordinary shares			70,984,100
Shanghai Alliance Investment Limited (上海聯和投資有限公司)			65,615,429			RMB ordinary shares			65,615,429

 

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

Among the 4,182,443,289 shares held by HKSCC NOMINEES LIMITED, 2,626,240,000 shares are held by CES Global Holdings (Hong Kong) Limited (“CES Global”) in the capacity of beneficial owner; CEA Holding owns 100% equity interest in CES Finance; CES Finance owns 100% equity interest in CES Global; thus, CEA Holding indirectly owns 100% equity interest in CES Global. The Company is not aware of any other connected relationship or activities in concert among the 10 largest holders of shares without trading moratorium.

 

Description of the preference shareholders with restored voting rights and the number of shares held by them

Not applicable

 

Note:

On 30 August 2017, CES Global pledged an aggregate of 960,000,000 H shares of the Company, all of which are listed shares without trading moratorium, including 700,000,000 H shares of the Company held by it to China Construction Bank (Asia) Corporation Limited and 260,000,000 H shares of the Company, all of which are listed shares without trading moratorium held by it to The Hong Kong and Shanghai Banking Co., Limited, for a pledged period of not more than 12 months.

 

2.3

The 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

 

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

 

		Change in the
		reporting period
		as compared to
		the same period
Item		last year		Reason for the Change
		(%)
Business tax		84.11		Primarily due to relevant tax adjustments which were originally included in administrative expenses by the Company are now accounted for under “Tax and surcharges” in accordance with the “Notice on Issuing the Regulations on the Accounting Treatment of Value-added Tax” issued by the Ministry of Finance, PRC (Cai Kuai [2016] No. 22)
Finance costs		–72.20		Primarily due to the impact of exchange gains or losses. The appreciation of RMB from January to September in 2017 resulted in exchange gains of RMB1.298 billion, as compared to exchange losses amounting to RMB1.768 billion due to depreciation in RMB during the same period last year.
Investment income		659.85		Primarily due to the disposal of 100% equity interest in Eastern Logistics, resulting in an investment income of RMB1.754 billion
Other income		Not applicable		Pursuant to the “Accounting Standards for Business Enterprises No. 16 – Government Grant” published by the Ministry of Finance, the Company has reclassified government grants in relation to its ordinary business from “non-operating incomes” to “other income”.
Monetary capital		152.59		Primarily due to the enhancement of the Company’s liquidity, lowering of financial risks and the increase in cash and cash equivalents as at the end of the period
Prepayments		–38.02		Primarily due to the decrease in payment for aircraft fuel for the current period
Dividend receivables		84.93		Primarily due to the increase in distribution of dividends receivable from associates of the Company

 

		Change in the
		reporting period
		as compared to
		the same period
Item		last year		Reason for the Change
		(%)
Other current assets		87.13		Primarily due to the increase in the Company’s value-added tax credit
Short-term borrowings		155.33		Primarily due to the adjustment in debt structure by the Company and increase in short-term borrowings for the current period
Bills payable		–90.54		Primarily due to the decrease in the use of bill payables for settlement by the Company during the reporting period
Tax payables		55.47		Primarily due to the increase in corporate income tax payable
Other current liabilities		–41.18		Primarily due to the repayment of super short-term commercial paper by the Company during the current period
Undistributed profits		85.30		Primarily due to realization of profits of the Company during the reporting period

 

3.2

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

 

(1)

Implementation of Profits Distribution for the Year 2016

 

On 28 June 2017, the Company’s Profits Distribution Proposal for 2016 was considered and approval at the 2016 annual general meeting of the Company. It was proposed that a dividend of RMB0.49 per ten Shares (tax inclusive) be distributed in cash for the year 2016. Based on the total share capital of 14,467,585,682 Shares of the Company, the total amount of cash dividend would be approximately RMB708 million (tax inclusive). The record date fell on 9 August 2017. The ex-right and ex-dividend date and cash dividend payment date fell on 10 August 2017. For details, please refer to the announcement published by the Company in China Securities Journal, Shanghai Securities News and on the website of the Shanghai Stock Exchange on 3 August 2017 and the announcement published by the Company on the website of the Hong Kong Stock Exchange on 28 June 2017.

 

(2)

Subscription of Equity Interest in AIR FRANCE-KLM by CEA Holding

 

On 27 July 2017, a wholly-owned subsidiary of CEA Holding, which is the controlling shareholder of the Company, entered into a conditional subscription agreement with AIR FRANCE-KLM, intending to provide for CEA Holding’s investment in AIR FRANCE-KLM through a reserved capital increase. With the amount of investment being around EUR375 million, CEA Holding intended to acquire 10% stake in AIR FRANCE-KLM’s share capital at the completion of the reserved capital increase. On the same day, Delta Air Lines, Inc. (“Delta”), which is the strategic shareholder of the Company, also entered into a conditional subscription agreement with AIR FRANCE- KLM and intended to acquire 10% stake in AIR FRANCE-KLM’s share capital at the completion of the reserved capital increase (the “Placement(s)”). On the same date, the Company entered into a marketing agreement with AIR FRANCE-KLM. On the basis of good business relationship between the two parties, the comprehensive business partnership has been further strengthened.

 

On 4 September 2017, the Placements to CEA Holding and Delta were approved at the general meeting of shareholders of AIR FRANCE-KLM. On 27 September 2017, the condition precedent relating to regulatory approvals by the relevant governmental authorities in respect of the completion of the Placements to CEA Holding and Delta has been satisfied. The settlement of the reserved capital increases and the admission on the regulated market of Euronext (mainly in the market of Paris and Amsterdam) of the related new shares occurred on 3 October 2017. At the completion of the Placements, CEA Holding holds 10% stake in AIR FRANCE-KLM’s share capital. In the meantime, Mr. Tang Bing, the director and vice president of the Company was appointed by CEA Holding as a director of AIR FRANCE-KLM.

 

CEA Holding, which is the controlling shareholder of the Company, and Delta, which is an important shareholder of the Company, strategically invested in AIR FRANCE-KLM to form a closer long-term partnership among the Company, AIR FRANCE-KLM and Delta. These three companies are complementary, mutually beneficial and the cooperation will achieve a win-win situation. These three companies will build a global network of airlines and will provide more convenient, efficient and high-quality travel services for passengers around the world. It will also help improve the Company’s competitiveness and influence in the global aviation market.

 

(3)

Connected Transaction with Shanghai Eastern Airlines Investment Co., Limited

 

On 30 March 2017, during its second regular meeting in 2017, the Board of the Company considered and approved the proposal regarding the transfer of the land and buildings in the eastern district of the Shanghai Hongqiao International Airport to CEA Holding. On 28 June 2017, during its sixth ordinary meeting, the eighth session of the Board of the Company considered and approved the proposal regarding the change to the plan for handling the target land and buildings in the eastern district of the Shanghai Hongqiao International Airport, pursuant to which it was agreed that the transferee shall be changed from CEA Holding to its wholly-owned subsidiary, Shanghai Eastern Airlines Investment Co., Limited (“Eastern Investment”).

 

On 29 September 2017, the Company entered into the land use rights transfer agreement and the buildings compensation agreement with Eastern Investment in Shanghai. Pursuant to the said land use rights transfer agreement and the buildings compensation agreement, the Company agreed to transfer to Eastern Investment the land use rights in respect of the six parcels of land located near Terminal One of the Shanghai Hongqiao International Airport with a total area of approximately 371,652 square meters, and Eastern Investment agreed to compensate the Company for the transfer of the buildings on these six parcels of land (comprising of 90 buildings and constructions, 62 structures, and green belts with a total area of 31,623 square meters). The consideration of the target land and the compensation of the buildings amounted to RMB808,019,100 in total. The ownership of the target land and buildings erected thereon has been vested to Eastern Investment, and the issue relating to the 76 defective properties on the target land will be resolved altogether. For details, please refer to the announcement published by the Company in China Securities Journal, Shanghai Securities News and on the website of the Shanghai Stock Exchange on 29 September 2017 and the announcement published by the Company on the website of the Hong Kong Stock Exchange on 29 September 2017.

 

(4)

Connected Transaction in Relation to Aircraft Operating Lease

 

The connected party under this connected transaction is CES International Financial Leasing Corporation Limited, a controlled subsidiary of CEA Holding (“CES Leasing”). On 27 April 2017, during its third regular meeting in 2017, the Board of the Company considered and approved the resolution regarding the transfer to CES Leasing of the purchase rights of five B737-800 Boeing aircraft and the provision of operating leasing under the agreement entered into between the Company (as purchaser) and Boeing Company (as seller) on 9 July 2015. On 10 August 2017, the Company entered into the aircraft lease agreements with a subsidiary established and wholly-owned by CES Leasing.

 

For details, please refer to the announcement published by the Company in China Securities Journal, Shanghai Securities News and on the website of the Shanghai Stock Exchange on 10 August 2017 and the announcement published by the Company on the website of the Hong Kong Stock Exchange on 10 August 2017.

 

3.3

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

 

Whether the

undertaking

Whether

has been strictly

there is an

implemented

Background of

Type of

Undertaking

Time and term

implementation

in a timely

undertaking

undertaking

party

Content of undertaking

of 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

Completed

 

Whether the

undertaking

Whether

has been strictly

there is an

implemented

Background of

Type of

Undertaking

Time and term

implementation

in a timely

undertaking

undertaking

party

Content of undertaking

of 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

Completed

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

 

3.4

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

 

Not applicable

 

	By order of the Board
	CHINA EASTERN AIRLINES CORPORATION LIMITED Wang Jian
	Company Secretary
	Shanghai, the People’s Republic of China
	26 October 2017

 

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 Hongping (Independent non-executive Director).

 

4.

APPENDICES

 

4.1

Financial Statements

 

China Eastern Airlines Corporation Limited

Consolidated and Company’s Balance Sheet as at 30 September 2017

(Unaudited)

(RMB million)

 

		30 September				31 December				30 September				31 December
		2017				2016				2017				2016
Assets		Consolidated				Consolidated				Company				Company
Current assets
Monetary capital			4,390				1,738				3,940				1,002
Hedge instruments			14				11				11				11
Bills receivable			–				30				–				–
Trade receivables			2,680				2,630				3,420				6,305
Prepayments			1,712				2,762				1,201				2,166
Dividends receivable			135				73				135				73
Other receivables			3,580				4,213				12,773				12,882
Inventory			2,400				2,248				42				38
Non-current assets due within one year			87				140				90				111
Other current assets			3,823				2,043				3,458				2,031
Total current assets			18,821				15,888				25,070				24,619
Non-current assets
Hedge instruments			87				137				87				137
Financial assets available for sale			713				645				616				570
Long-term equity investment			2,244				2,060				15,354				16,630
Investment properties			315				321				30				31
Fixed assets			159,865				150,751				105,295				97,264
Construction in progress			27,847				25,755				26,331				24,582
Intangible assets			2,058				2,418				1,374				1,404
Goodwill			9,028				9,028				9,028				9,028
Long-term deferred expenses			1,471				1,879				1,239				1,210
Deferred income tax assets			84				79				–				–
Other non-current assets			1,119				1,090				926				915
Total non-current assets			204,831				194,163				160,280				151,771
Total assets			223,652				210,051				185,350				176,390

 

4.1

Financial Statements (Cont’d)

 

China Eastern Airlines Corporation Limited

Consolidated and Company’s Balance Sheet as at 30 September 2017 (Cont’d)

(Unaudited)

(RMB million)

 

		30 September				31 December				30 September				31 December
		2017				2016				2017				2016
Liabilities and shareholders’ equity		Consolidated				Consolidated				Company				Company
Current liabilities
Short-term borrowings			25,490				9,983				24,110				9,245
Hedge instruments			256				11				195				11
Notes payable			106				1,120				80				1,107
Trade payables			11,812				10,811				10,524				11,827
Account collected in advance			1,117				966				820				708
Settlement of vouchers			6,704				7,677				6,497				7,294
Staff remuneration payable			2,938				4,025				2,018				1,993
Tax payable			2,814				1,810				1,496				885
Interest payable			844				932				627				691
Other payables			2,056				3,455				9,944				12,715
Non-current liabilities due within one year			9,673				10,289				6,663				6,216
Other current liabilities			10,000				17,000				10,000				17,000
Total current liabilities			73,810				68,079				72,974				69,692
Non-current liabilities
Long-term borrowings			8,321				10,604				4,609				5,747
Hedge instruments			38				47				38				47
Bonds payable			17,296				17,286				17,296				17,286
Long-term payables			61,032				58,514				41,385				37,546
Long-term staff remuneration payable			2,487				3,085				1,933				2,305
Special items payable			83				86				67				66
Deferred income tax liabilities			68				86				73				95
Other non-current liabilities			2,440				2,168				1,505				1,250
Total non-current liabilities			91,765				91,876				66,906				64,342
Total liabilities			165,575				159,955				139,880				134,034

 

4.1

Financial Statements (Cont’d)

 

China Eastern Airlines Corporation Limited

Consolidated and Company’s Balance Sheet as at 30 September 2017 (Cont’d)

(Unaudited)

(RMB million)

 

		30 September				31 December				30 September				31 December
		2017				2016				2017				2016
Liabilities and shareholders’ equity		Consolidated				Consolidated				Company				Company
Shareholders’ equity
Share capital			14,467				14,467				14,467				14,467
Capital reserves			26,760				26,760				27,470				27,470
Other comprehensive income			(2,657	)			(2,817	)			(1,973	)			(2,140	)
Surplus reserves			328				328				328				328
Undistributed profits			15,654				8,448				5,178				2,231
Total equity attributable to shareholders of the parent company			54,552				47,186
Minority interests			3,525				2,910
Total shareholders’ equity			58,077				50,096				45,470				42,356
Total liabilities and shareholders’ equity			223,652				210,051				185,350				176,390

 

Legal representative: Liu Shaoyong

Officer-in-charge of accounting: Ma Xulun

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

 

4.1

Financial Statements (Cont’d)

 

China Eastern Airlines Corporation Limited

Consolidated and Company’s Income Statement for the Period from January to September 2017

(RMB million)

 

				Jul to Sep				Jul to Sep				Jan to Sep				Jan to Sep				Jul to Sep				Jul to Sep				Jan to Sep				Jan to Sep
				2017				2016				2017				2016				2017				2016				2017				2016
				Consolidated				Consolidated				Consolidated				Consolidated				Company				Company				Company				Company
1.		Revenue			29,485				29,076				77,505				75,408				17,573				16,274				45,793				42,071
		Less: Operating costs			23,022				22,135				65,643				59,870				14,201				12,494				39,753				33,605
		Business tax and surcharges			62				35				197				107				14				7				54				16
		Selling expenses			1,535				1,350				4,196				4,122				1,147				966				3,104				2,985
		Administrative expenses			790				785				2,129				2,103				511				444				1,336				1,198
		Finance expenses/ (income) – net			322				1,165				1,101				3,960				225				826				951				2,779
		Assets impairment loss			7				–				16				3				7				–				7				–
		Add: Gains arising from changes in fair value			–				–				–				2				–				–				–				2
		Investment gains			91				53				2,006				264				153				53				1,141				358
		Other income			975								3,714								550								2,262
2.		Operating profit			4,813				3,659				9,943				5,509				2,171				1,590				3,991				1,848
		Add: Non-operating income			368				1,235				1,027				3,967				296				758				889				2,251
		Less: Non-operating expenses			25				14				35				22				24				6				28				10
3.		Total profits			5,156				4,880				10,935				9,454				2,443				2,342				4,852				4,089
		Less: Income tax expenses			1,287				1,149				2,439				2,190				645				606				1,196				928
4.		Net profit			3,869				3,731				8,496				7,264				1,798				1,736				3,656				3,161
		– Net profit attributable to shareholders of the parent company			3,568				3,461				7,915				6,694
		– Minority interests			301				270				581				570

 

4.1

Financial Statements (Cont’d)

 

China Eastern Airlines Corporation Limited

Consolidated and Company’s Income Statement for the Period from January to September 2017 (Cont’d)

(RMB million)

 

				Jul to Sep				Jul to Sep				Jan to Sep				Jan to Sep				Jul to Sep				Jul to Sep				Jan to Sep				Jan to Sep
				2017				2016				2017				2016				2017				2016				2017				2016
				Consolidated				Consolidated				Consolidated				Consolidated				Company				Company				Company				Company
5.		Earnings per share
		Basic earnings per share (RMB)			0.25				0.24				0.55				0.49
		Diluted earnings per share (RMB)			0.25				0.24				0.55				0.49
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			181				–				365				30				181				–				332				34
		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			4								9				(7	)			4								9				(7	)
		Gain or loss from fair value movements of available- for-sale financial assets			(66	)			83				33				118				(66	)			83				17				110

 

4.1

Financial Statements (Cont’d)

 

China Eastern Airlines Corporation Limited

Consolidated and Company’s Income Statement for the Period from January to September 2017 (Cont’d)

(RMB million)

 

				Jul to Sep				Jul to Sep				Jan to Sep				Jan to Sep				Jul to Sep				Jul to Sep				Jan to Sep				Jan to Sep
				2017				2016				2017				2016				2017				2016				2017				2016
				Consolidated				Consolidated				Consolidated				Consolidated				Company				Company				Company				Company
		Effective portion of gains or losses from cash flow hedge instruments			(104	)			81				(241	)			(97	)			(104	)			81				(207	)			(97	)
		Other comprehensive income, net of tax			15				164				166				44				15				164				151				40
		Of which:
		Other comprehensive income, net of tax, attributable to shareholders of the parent company			15				164				160				41
		Other comprehensive income, net of tax, attributable to minority interests											6				3
7.		Total comprehensive income			3,884				3,895				8,662				7,308				1,813				1,900				3,807				3,201
		Of which:
		Total comprehensive income attributable to shareholders of the parent company			3,583				3,625				8,075				6,735
		Total comprehensive income attributable to minority interests			301				270				587				573

 

Legal representative: Liu Shaoyong

Officer-in-charge of accounting: Ma Xulun

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

 

4.1

Financial Statements (Cont’d)

 

China Eastern Airlines Corporation Limited

Consolidated and Company’s Cash Flow Statement for the Period from January to September 2017 (Unaudited)

(RMB million)

 

				For the nine				For the nine				For the nine				For the nine
				months ended				months ended				months ended				months ended
				30 September				30 September				30 September				30 September
				2017				2016				2017				2016
Item				Consolidated				Consolidated				Company				Company
1.		Cash flow from operating activities
		Cash received from sales of goods and provision of labour services			81,236				79,314				50,622				44,577
		Refund of taxes			1,942				1,778				1,754				926
		Other cash received from operating activities			8,043				8,052				7,898				6,394
		Sub-total of cash inflow from operating activities			91,221				89,144				60,274				51,897
		Cash paid for purchase of goods and receiving of labour services			(52,754	)			(48,608	)			(35,501	)			(26,600	)
		Cash paid to and for employees			(14,038	)			(13,703	)			(7,001	)			(6,739	)
		Taxes paid			(4,014	)			(2,840	)			(2,124	)			(1,256	)
		Other cash paid for operating activities			(5,887	)			(4,771	)			(5,293	)			(10,107	)
		Sub-total of cash outflow from operating activities			(76,693	)			(69,922	)			(49,919	)			(44,702	)
		Net cash flows from operating activities			14,528				19,222				10,355				7,195
2.		Cash flow from investing activities
		Cash received from disposal of investment			12				–				266				–
		Investment income in cash			70				138				173				138

 

4.1

Financial Statements (Cont’d)

 

China Eastern Airlines Corporation Limited

Consolidated and Company’s Cash Flow Statement for the Period from January to September 2017 (Cont’d) (Unaudited)

(RMB million)

 

				For the nine				For the nine				For the nine				For the nine
				months ended				months ended				months ended				months ended
				30 September				30 September				30 September				30 September
				2017				2016				2017				2016
Item				Consolidated				Consolidated				Company				Company
		Net cash recovered from disposals of fixed assets, intangible assets and other long-term assets			224				587				115				242
		Net cash received from disposal of subsidiaries			1,897				–				2,433				–
		Other cash received from investing activities			70				53				115				50
		Sub-total of cash inflow from investing activities			2,273				778				3,102				430
		Amount paid in cash in relation to purchases of fixed assets, intangible assets and other long-term assets			(19,140	)			(24,485	)			(17,818	)			(22,826	)
		Investments paid in cash			(33	)			–				(283	)			–
		Other cash paid for investing activities			(4	)			(4	)			–				–
		Sub-total of cash outflow from investing activities			(19,177	)			(24,489	)			(18,101	)			(22,826	)
		Net cash flow from investing activities			(16,904	)			(23,711	)			(14,999	)			(22,396	)

 

4.1

Financial Statements (Cont’d)

 

China Eastern Airlines Corporation Limited

Consolidated and Company’s Cash Flow Statement for the Period from January to September 2017 (Cont’d) (Unaudited)

(RMB million)

 

				For the nine				For the nine				For the nine				For the nine
				months ended				months ended				months ended				months ended
				30 September				30 September				30 September				30 September
				2017				2016				2017				2016
Item				Consolidated				Consolidated				Company				Company
3.		Cash flow from financing activities
		Proceeds received in cash from investments			–				8,540				–				8,540
		Cash received from borrowings			71,972				89,508				66,319				85,340
		Cash received from bond issue			–				9,533				–				9,533
		Other cash received in relation to financing activities			–				40				–				40
		Sub-total of cash inflow from financing activities			71,972				107,621				66,319				103,453
		Cash paid for repayment of indebtedness			(54,639	)			(99,907	)			(51,846	)			(89,543	)
		Cash payments for distribution of dividends, profits or payments of interest expense			(2,951	)			(2,509	)			(2,305	)			(1,878	)
		Other cash paid for financing activities			(9,375	)			(8,574	)			(4,584	)			(4,011	)
		Sub-total of cash outflow from financing activities			(66,965	)			(110,990	)			(58,735	)			(95,432	)
		Net cash flow from financing activities			5,007				(3,369	)			7,584				8,021
4.		Effect of changes in exchange rate on cash and cash equivalents			5				105				(10	)			96
5.		Net increase in cash and cash equivalents			2,636				(7,753	)			2,930				(7,084	)
		Add: Balance of cash and cash equivalents at the beginning of the period/year			1,695				9,080				976				8,042
6.		Balance of cash and cash equivalents at the end of the period/year			4,331				1,327				3,906				958

 

Legal representative: Liu Shaoyong

Officer-in-charge of accounting: Ma Xulun

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