Form 6-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 6-K

 

 

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16

under the Securities Exchange Act of 1934

For the month of April 2019

Commission File Number: 001-14550

 

 

China Eastern Airlines Corporation Limited

(Translation of Registrant’s name into English)

 

 

Board Secretariat’s Office

5/F, Block A2, Northern District, CEA Building

36 Hongxiang 3rd Road, Minhang District

Shanghai, China 200335

(Address of principal executive offices)

 

 

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

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

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

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

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

 

 

 


SIGNATURES

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

 

    China Eastern Airlines Corporation Limited
   

(Registrant)

Date   April 30, 2019                             By  

/s/ Wang Jian

    Name:   Wang Jian
    Title:   Company Secretary

 

2


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

 

3


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

 

LOGO

2019 FIRST QUARTERLY REPORT

 

  

This announcement is made pursuant to the requirements under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) and Rule 13.09 and Rule 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

 

The financial statements of the Company for the first quarter of 2019 were not audited, and were prepared in accordance with the China Accounting Standards for Business Enterprises.

 

 

1.

IMPORTANT NOTICE

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

This quarterly report was prepared in accordance with the regulations as prescribed by the China Securities Regulatory Commission in relation to disclosure of information in quarterly reports for listed companies, and is published simultaneously in Shanghai and Hong Kong. The financial statements of the Company for the first quarter of 2019 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.

 

1


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

Liu Shaoyong, the person-in-charge of the Company, Li Yangmin, the officer-in-charge of accounting of the Company, and 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 first quarterly report of the Company are unaudited.

Pursuant to the notice regarding the “Accounting Standards for Business Enterprises No. 21 — Leases” amended and published by the Ministry of Finance of the People’s Republic of China (Caihui (2018) No. 35) (the “New Lease Standards”), the Group began to apply the New Lease Standards from 1 January 2019 onwards. Save for short-term leases and low-value leases, the Group adjusted the opening balance of retained earnings and other related items in the financial statements in 2019 based on the cumulative effect of initial application of such standards, and did not adjust information for the comparable period. Please refer to Appendix 4.2 for details of impact of the adoption of the New Lease Standards by the Group. The abovementioned impact of changes in accounting policies was made by the Group in accordance with the relevant regulations which had been issued by the Ministry of Finance as of the date of this report. If the Ministry of Finance issues further guidelines or requirements related to the New Lease Standards (including guidelines, interpretations, reporting requirements and tax regulatory guidelines related to the relevant accounting policies), the Group will review the accuracy of the above disclosures on changes in accounting policies, which may lead to inconsistency between the disclosure of the abovementioned impact of changes in accounting policies and the corresponding data of the first quarterly financial statements of 2019.

 

2


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 the             period compared  
     end of the      As at the end      with the end  
     reporting period      of last year      of last year  
                   (%)  

Total assets

     280,012        236,765        18.27  

Net assets attributable to shareholders of the listed company

     55,964        55,765        0.36  
     From the      From the      Increase/  
     beginning of the      beginning of last      decrease  
     year to the end      year to the end      compared  
     of the reporting      of the reporting      with the same  
     period      period last year      period last year  
                   (%)  

Net cash flows from operating activities

     5,335        6,376        -16.33  
     From the      From the      Increase/  
     beginning of the      beginning of last      decrease  
     year to the end      year to the end      compared  
     of the reporting      of the reporting      with the same  
     period      period last year      period last year  
                   (%)  

Revenue

     30,053        26,753        12.34  

Net profit attributable to shareholders of the listed company

     2,006        1,983        1.16  

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

     1,935        1,897        2.00  
           Increased by  

Weighted average return on net assets (%)

     3.65        3.64        0.01 pt  

Basic earnings per share (RMB/share)

     0.1387        0.1371        1.17  

Diluted earnings per share (RMB/share)

     0.1387        0.1371        1.17  

 

3


Non-recurring profit and loss and relevant amounts

 

     Unit: million Currency: RMB  
     Amount for  
Item    the period  

Gains or losses from disposal of non-current assets

     -2  

Non-operating incomes and expenses other than the above

     96  

Effect on income tax

     -23  
  

 

 

 

Total

     71  
  

 

 

 

 

4


  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

 

              183,735
     Shareholding of the 10 largest shareholders                     
                  Number of                     
                  shares with      Pledged or locked-up       
     Shareholdings            trading                     
     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 Limited

( 中國東方航空集團有限公司 )

     5,072,922,927        35.06     0        0        0      State-owned legal person

HKSCC Nominees Limited

     4,183,975,178        28.92     0        Unknown        Unknown      Overseas legal person

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

     504,767,895        3.49     0        0        0      State-owned legal person

Delta Air Lines, Inc.

     465,910,000        3.22     0        Unknown        Unknown      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     0        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 )

     457,317,073        3.16     0        0        0      State-owned legal person

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

     429,673,382        2.97     0        0        0      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     0        0        0      State-owned legal person

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

     85,576,960        0.59     0        0        0      Overseas legal person

Central Huijin Asset Management Ltd.

( 中央匯金資產管理有限責任公司 )

     70,984,100        0.49     0        0        0      State-owned legal person

 

5


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 Limited ( 中國東方航空集團有限公司 )

     5,072,922,927      RMB ordinary shares      5,072,922,927  

HKSCC Nominees Limited

     4,183,975,178      Overseas listed foreign shares      4,183,975,178  

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

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

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

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

     232,919,254      RMB ordinary shares      232,919,254  

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

     85,576,960      RMB ordinary shares      85,576,960  

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

     70,984,100      RMB ordinary shares      70,984,100  

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

    








Among the 4,183,975,178 shares held by HKSCC Nominees
Limited, 2,626,240,000 shares are held by CES Global Holdings
(Hong Kong) Limited (“CES Global”) in the capacity of beneficial
owner; China Eastern Air Holding Company Limited (“CEA
Holding”) owns 100% equity interest in CES Finance Holding Co.,
Ltd (“CES Finance”); CES Finance owns 100% equity interest in
CES Global; thus, CEA Holding 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.
 
 
 
 
 
 
 
 
 
 

 

Note:

As at the end of the reporting period, CES Global has pledged in aggregate 1,450,000,000 H shares of the Company.

 

6


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

During the first quarter of 2019, the Company achieved passenger traffic volume of 54,343.09 million passenger-kilometres, representing an increase of 12.02% from last year; served 31.8777 million travelers, representing an increase of 10.92% from last year; and achieved passenger load factor of 82.58%, representing an increase of 0.83 percentage points from last year.

During the first quarter of 2019, the Company achieved outstanding operating results. Operating income amounted to RMB30,053 million, representing an increase of 12.34% from last year; total profits amounted to RMB2,875 million, representing an increase of 3.94% from last year; and net profit attributable to shareholders of parent company amounted to RMB2,006 million, representing an increase of 1.16% from last year. During the first quarter of 2019, the Company achieved net profit excluding non-recurring profit and loss attributable to shareholders of the listed company of RMB1,935 million, representing an increase of 2.00% from last year.

 

     Change      
     compared      
     to the end      
Item    of last year     Reason for the Change

Monetary capital

     188.52   Primarily due to the reserve of capital by the Company for prepayment of aircraft and engines based on the situation of external capital market

Notes and trade receivables

     95.33   Primarily due to the cyclical impact of the billing and settlement plan

Prepayments

     -51.11   Primarily due to the implementation of the New Lease Standards by the Company

Hedge instruments

     -64.86   Primarily due to the decrease in fair value of derivative financial instruments as at the end of the reporting period

Fixed assets

     -52.61   Primarily due to the transfer of finance lease assets to right-of-use assets as a result of the implementation of the New Lease Standards by the Company

Right-of-use assets

     —       Primarily due to the recognition of lease assets as right-of-use assets as a result of the implementation of the New Lease Standards by the Company

Other non-current assets

     33.23   Primarily due to the increase in prepayment for acquisition of long-term asset by the Company

 

7


     Change      
     compared      
     to the end      
Item    of last year     Reason for the Change

Deferred income tax assets

     239.13   Primarily due to the adjustment of opening balance of retained earnings and adjustment of deferred income tax as a result of the implementation of the New Lease Standards by the Company

Short-term borrowings

     -60.59   Primarily due to the decrease in financing from short-term borrowings and increase in financing from super short-term debentures by the Company based on financial market conditions

Other current liabilities

     90.33   Primarily due to the increase in financing from super short-term debentures by the Company based on financial market conditions

Long-term borrowings

     -39.45   Primarily due to the decrease in financing from long-term borrowings and increase in financing from super short-term debentures by the Company based on financial market conditions

Long-term payables

     -97.91   Primarily due to the transfer of finance lease liabilities to lease liabilities as a result of the implementation of the New Lease Standards by the Company

Lease liabilities

     —       Primarily due to the recognition of finance lease and operating lease liabilities as a result of the implementation of the New Lease Standards by the Company

Estimated liabilities

     223.98   Primarily due to the recognition of provision for overhauls of lease assets as a result of the implementation of the New Lease Standards by the Company

Deferred income tax liabilities

     -100   Primarily due to the adjustment of opening balance of retained earnings and adjustment of deferred income tax as a result of the implementation of the New Lease Standards by the Company

 

8


     Change      
     compared      
Item    to last year     Reason for the Change

Research and development expenses

     50.00   Primarily due to the increase in investment in research and development by the Company

Finance costs

     145.81   Primarily due to the year-on-year decrease in net exchange gains for the period and the increase in interest expenses upon implementation of the New Lease Standards

Non-operating income

     -62.43   Primarily due to the decrease in non-operating income of the Company

Cash flow from investing activities

     59.20   Primarily due to the increase in acquisition of long-term assets such as aircraft and engines

 

  3.2

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

 

  1.

On 18 January 2019, the Board considered and approved that the Company shall provide, within the period from the effective date of the Board resolution to 31 December 2019, guarantee in the total amount of up to RMB1 billion to China United Airlines Co., Ltd., Shanghai Eastern Flight Training Co., Ltd., Eastern Business Airlines Services Co., Ltd., China Eastern Technology Co., Ltd., Shanghai Dongmei Air Travel Co., Ltd. and their respective wholly-owned subsidiaries. Shanghai Airlines Tours International (Group) Co., Ltd. (a wholly-owned subsidiary of the Company) shall provide guarantee in the total amount of RMB10 million to Shanghai Dongmei Air Travel Co., Ltd., the period of which shall be the same as the period of the subject obligations of the respective guaranteed parties and shall not exceed 10 years. For details, please refer to the announcement of the Company published on the China Securities Journal, Shanghai Securities News, Securities Daily and website of the Shanghai Stock Exchange on 19 January 2019 and on the website of the Hong Kong Stock Exchange on 18 January 2019.

 

  2.

On 1 February 2019, the Company received a resignation letter from Mr. Ma Xulun, the vice chairman and president of the Company. Due to work re-allocation, Mr. Ma Xulun resigned as a director, vice chairman, chairman of the Planning and Development Committee of the Board, chairman of the Aviation Safety and Environment Committee of the Board and president of the Company.

 

  3.

On 15 March 2019, the Company received a resignation letter from Mr. Tang Bing, a vice president of the Company. Due to work arrangement, Mr. Tang Bing resigned as a vice president of the Company.

 

  4.

On 15 March 2019, the 21st ordinary meeting of the eighth session of the Board of the Company considered and approved the “Proposal on the Appointment of President of the Company” and agreed to appoint Li Yangmin as the president of the Company for the same term of office as the Board; and considered and approved the “Proposal on the Election of Candidates for the Board of Directors” and agreed to nominate Li Yangmin and Tang Bing as candidates for the Board of the Company.

 

9


  5.

In July 2018, the Company announced a major capital project regarding the non- public issuance of A shares and H shares of the Company, which proposed to introduce Shanghai Juneyao Airlines Co., Ltd. (“JuneYao Airlines”) and its controlling shareholder, Shanghai Juneyao (Group) Co., Ltd. (“JuneYao Group”), and China Structural Reform Fund Corporation Limited as strategic investors. JuneYao Airlines and JuneYao Group plan to hold 10% of the shares of the Company in aggregate. The application for non-public issuance of A shares of the Company has been examined and approved by the Issuance Examination Committee of the China Securities Regulatory Commission (the “CSRC”). Currently, the Company has not yet received the written approval document from the CSRC. The capital project has been steadily advancing, and shall be implemented upon fulfilment of certain market conditions.

Eastern Airlines Industry Investment Company Limited (“Eastern Airlines Industry Investment”), a wholly-owned subsidiary of CEA Holding, the controlling shareholder of the Company, has completed the transfer of 7% of the shares in JuneYao Airlines from JuneYao Group in early 2019. Eastern Airlines Industry Investment has also announced its subscription in the proposed non-public issuance of A Shares of JuneYao Airlines. Eastern Airlines Industry Investment plans to hold 15% of shares of JuneYao Airlines in aggregate.

On 15 March 2019, the 20th ordinary meeting of the eighth session of the Board of the Company considered and approved the proposal on the adjustment of non-public issuance of A shares, which adjusted the maximum limit of number of shares and amount of proceeds regarding the non-public issuance of A shares. On 26 April 2019, the application for non-public issuance of A shares of the Company was approved by the CSRC. The non-public issuance of H shares of the Company is subject to written approvals such as by the CSRC. For details, please refer to the announcements of the Company published on the China Securities Journal, Shanghai Securities News, Securities Daily and website of the Shanghai Stock Exchange on 9 January, 16 March and 27 April 2019, and on the website of the Hong Kong Stock Exchange on 8 January, 15 March and 26 April 2019.

 

  3.3

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

Not applicable

 

  3.4

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

Not applicable

 

By order of the Board

CHINA EASTERN AIRLINES CORPORATION LIMITED Liu Shaoyong

Chairman

Shanghai, the People’s Republic of China

29 April 2019

As at the date of this announcement, the directors of the Company include Liu Shaoyong (Chairman), Lin Wanli (Independent non-executive Director), Li Ruoshan (Independent non-executive Director), Ma Weihua (Independent non-executive Director), Shao Ruiqing (Independent non-executive Director), Cai Hongping (Independent non-executive Director) and Yuan Jun (Employee representative Director).

 

10


4.

APPENDICES

 

  4.1

Financial Statements

China Eastern Airlines Corporation Limited

Consolidated and Company’s Balance Sheet as at 31 March 2019 (unaudited)

 

RMB million                            
     31 March      31 December      31 March      31 December  
     2019      2018      2019      2018  
     Consolidated      Consolidated      Company      Company  

Assets

           

Current assets

           

Monetary capital

     1,910        662        1,530        400  

Held-for-trading financial assets

     96        96        96        96  

Hedge instruments

     —          1        —          1  

Notes and trade receivables

     2,805        1,436        2,208        1,177  

Prepayments

     374        765        68        242  

Other receivables

     5,272        5,203        9,548        11,413  

Inventory

     1,991        1,950        33        29  

Held-for-sale assets

     10        11        —          —    

Non-current assets due within one year

     18        18        5        4  

Other current assets

     6,585        5,790        6,286        5,224  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total current assets

     19,061        15,932        19,774        18,586  
  

 

 

    

 

 

    

 

 

    

 

 

 

Non-current assets

           

Long-term equity investment

     2,423        2,273        15,345        15,195  

Other equity instrument investments

     1,299        1,247        1,193        1,149  

Hedge instruments

     78        222        78        222  

Investment properties

     724        724        181        181  

Fixed assets

     83,255        175,675        54,736        113,116  

Right-of-use assets

     133,210        —          78,811        —    

Construction in progress

     24,915        26,554        24,575        26,214  

Intangible assets

     1,708        1,726        1,135        1,140  

Goodwill

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

Long-term deferred expenses

     1,817        1,832        1,531        1,531  

Deferred income tax assets

     702        207        186        —    

Other non-current assets

     1,792        1,345        1,573        1,411  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total non-current assets

     260,951        220,833        188,372        169,187  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total assets

     280,012        236,765        208,146        187,773  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

11


  4.1

Financial Statements (Cont’d)

China Eastern Airlines Corporation Limited

Consolidated and Company’s Balance Sheet as at 31 March 2019 (unaudited) (Cont’d)

 

RMB million                            
     31 March      31 December      31 March      31 December  
     2019      2018      2019      2018  
     Consolidated      Consolidated      Company      Company  

Liabilities and shareholders’ equity

           

Current liabilities

           

Short-term borrowings

     3,200        8,120        7,413        16,357  

Hedge instruments

     29        29        29        29  

Notes and trade payables

     12,418        12,166        9,852        9,954  

Account collected in advance

     9        6        —          6  

Contract liabilities

     7,466        8,811        6,866        8,123  

Staff remuneration payable

     2,591        2,854        1,478        1,663  

Tax payable

     2,130        2,065        1,068        928  

Other payables

     7,719        7,581        8,897        9,084  

Non-current liabilities due within one year

     19,379        16,551        11,008        12,755  

Other current liabilities

     28,318        14,878        28,269        14,821  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total current liabilities

     83,259        73,061        74,880        73,720  
  

 

 

    

 

 

    

 

 

    

 

 

 

Non-current liabilities

           

Long-term borrowings

     5,141        8,490        4,840        5,131  

Bonds payable

     17,295        17,377        14,819        14,880  

Long-term payables

     1,449        69,355        626        44,368  

Long-term staff remuneration payable

     2,843        2,822        2,228        2,206  

Estimated liabilities

     8,945        2,761        3,681        777  

Lease liabilities

     97,954        —          60,308        —    

Deferred income

     1,391        1,294        1,225        1,132  

Other non-current liabilities

     2,219        2,169        1,305        1,245  

Deferred income tax liabilities

     —          84        —          63  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total non-current liabilities

     137,237        104,352        89,032        69,802  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total liabilities

     220,496        177,413        163,912        143,522  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

12


  4.1

Financial Statements (Cont’d)

China Eastern Airlines Corporation Limited

Consolidated and Company’s Balance Sheet as at 31 March 2019 (unaudited) (Cont’d)

 

RMB million                            
     31 March      31 December      31 March      31 December  
     2019      2018      2019      2018  
     Consolidated      Consolidated      Company      Company  

Liabilities and shareholders’ equity

           

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

     (2,355      (2,213      (1,685      (1,550

Surplus reserves

     570        570        570        570  

Undistributed profits

     16,522        16,181        3,412        3,294  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total equity attributable to shareholders of parent company

     55,964        55,765        44,234        44,251  

Minority interests

     3,552        3,587        —          —    
  

 

 

    

 

 

    

 

 

    

 

 

 

Total shareholders’ equity

     59,516        59,352        44,234        44,251  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total liabilities and shareholders’ equity

     280,012        236,765        208,146        187,773  
  

 

 

    

 

 

    

 

 

    

 

 

 

The financial statements are signed by:

Person-in-charge of the Company: Liu Shaoyong

Officer-in-charge of accounting: Li Yangmin

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

 

13


  4.1

Financial Statements (Cont’d)

China Eastern Airlines Corporation Limited

Consolidated and Company’s Income Statement for the Period from January to March 2019 (unaudited)

 

RMB million                            
     Jan to Mar      Jan to Mar      Jan to Mar      Jan to Mar  
     2019      2018      2019      2018  
     Consolidated      Consolidated      Company      Company  

Revenue

     30,053        26,753        18,390        15,753  

Less: Operating costs

     25,819        23,563        16,144        14,407  

Taxes and surcharges

     57        62        15        16  

Selling expenses

     1,535        1,359        1,123        985  

Administrative expenses

     794        647        524        430  

Research and development expenses

     33        22        24        21  

Finance costs

     213        (465      75        (413

Of which: Interest expenses

     1,209        955        819        734  

Interest income

     10        12        10        12  

Credit impairment loss

     1        1        —          —    

Add: Other gains

     1,151        1,152        472        650  

Investment gains

     58        70        145        80  

Of which: Gains from investments in associates and joint ventures

     58        70        58        80  

Gains/(Loss) arising from changes in fair value

     —          (209      —          (209

Gains from disposal of assets

     —          3        —          1  

Operating profit

     2,810        2,580        1,102        829  

Add: Non-operating income

     71        189        60        131  

Less: Non-operating expenses

     6        3        5        2  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total profits

     2,875        2,766        1,157        958  

Less: Income tax expenses

     705        608        289        240  
  

 

 

    

 

 

    

 

 

    

 

 

 

Net profit

     2,170        2,158        868        718  
  

 

 

    

 

 

    

 

 

    

 

 

 

Classified by continuation of business Net profit from continuing activities

     2,170        2,158        

Classified by ownership Net profit attributable to shareholders of parent company

     2,006        1,983        

Minority interests

     164        175        

 

14


  4.1

Financial Statements (Cont’d)

China Eastern Airlines Corporation Limited

Consolidated and Company’s Income Statement for the Period from January to March 2019 (unaudited) (Cont’d)

 

RMB million                            
     Jan to Mar      Jan to Mar      Jan to Mar      Jan to Mar  
     2019      2018      2019      2018  
     Consolidated      Consolidated      Company      Company  

Other comprehensive income, net of tax

           

Other comprehensive income that cannot be reclassified into profit or loss

           

Changes arising from re-measuring defined benefit plan

     (46      (20      (35      (15

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

     —          (5      —          (6

Changes in fair value of other equity instrument investments

     52        (34      45        (34
  

 

 

    

 

 

    

 

 

    

 

 

 

Other comprehensive income that will be reclassified into profit or loss Cash flow hedge reserve

     (145      1        (145      1  
  

 

 

    

 

 

    

 

 

    

 

 

 

Other comprehensive income, net of tax

     (139      (58      (135      (54
  

 

 

    

 

 

    

 

 

    

 

 

 

Of which:

           

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

     (142      (58      
  

 

 

    

 

 

       

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

     3        —          
  

 

 

    

 

 

       

Total comprehensive income

     2,031        2,100        733        664  
  

 

 

    

 

 

    

 

 

    

 

 

 

Of which:

           

Total comprehensive income attributable to shareholders of the parent company

     1,864        1,925        
  

 

 

    

 

 

       

Total comprehensive income attributable to minority interests

     167        175        
  

 

 

    

 

 

       

Earnings per share

           

Basis earnings per share (in RMB)

     0.14        0.14        
  

 

 

    

 

 

       

Diluted earnings per share (in RMB)

     0.14        0.14        
  

 

 

    

 

 

       

 

15


  4.1

Financial Statements (Cont’d)

China Eastern Airlines Corporation Limited

Consolidated and Company’s Cash Flow Statement for the Period from January to March 2019 (unaudited)

 

RMB million                            
     Jan to Mar      Jan to Mar      Jan to Mar      Jan to Mar  
     2019      2018      2019      2018  
     Consolidated      Consolidated      Company      Company  

1. Cash flow from operating activities

           

Cash received from sales of goods and provision of labour services

     31,034        28,277        17,838        15,490  

Refund of taxes

     50        1        —          —    

Other cash received from operating activities

     3,347        3,612        3,090        3,142  
  

 

 

    

 

 

    

 

 

    

 

 

 

Sub-total of cash inflow from operating activities

     34,431        31,890        20,928        18,632  
  

 

 

    

 

 

    

 

 

    

 

 

 

Cash paid for purchase of goods and receiving of labour services

     (20,352      (18,194      (11,521      (10,855

Cash paid to and for employees

     (5,450      (4,162      (2,565      (2,019

Taxes paid

     (1,096      (1,189      (349      (767

Other cash paid for operating activities

     (2,198      (1,969      (1,837      (1,766
  

 

 

    

 

 

    

 

 

    

 

 

 

Sub-total of cash outflow from operating activities

     (29,096      (25,514      (16,272      (15,407
  

 

 

    

 

 

    

 

 

    

 

 

 

Net cash flows from operating activities

     5,335        6,376        4,656        3,225  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

16


  4.1

Financial Statements (Cont’d)

China Eastern Airlines Corporation Limited

Consolidated and Company’s Cash Flow Statement for the Period from January to March 2019 (unaudited) (Cont’d)

 

RMB million                            
     Jan to Mar      Jan to Mar      Jan to Mar      Jan to Mar  
     2019      2018      2019      2018  
     Consolidated      Consolidated      Company      Company  

2. Cash flow from investing activities

           

Investment income in cash

     12        41        98        41  

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

     5        —          5        —    

Other cash received from investing activities

     —          12        —          12  
  

 

 

    

 

 

    

 

 

    

 

 

 

Sub-total of cash inflow from investing activities

     17        53        103        53  
  

 

 

    

 

 

    

 

 

    

 

 

 

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

     (6,429      (4,128      (6,012      (3,089

Investments paid in cash

     (101      (16      (101      (16
  

 

 

    

 

 

    

 

 

    

 

 

 

Sub-total of cash outflow from investing activities

     (6,530      (4,144      (6,113      (3,105
  

 

 

    

 

 

    

 

 

    

 

 

 

Net cash flow from investing activities

     (6,513      (4,091      (6,010      (3,052
  

 

 

    

 

 

    

 

 

    

 

 

 

 

17


  4.1

Financial Statements (Cont’d)

China Eastern Airlines Corporation Limited

Consolidated and Company’s Cash Flow Statement for the Period from January to March 2019 (unaudited) (Cont’d)

 

RMB million                            
     Jan to Mar      Jan to Mar      Jan to Mar      Jan to Mar  
     2019      2018      2019      2018  
     Consolidated      Consolidated      Company      Company  

3. Cash flow from financing activities

           

Cash received from borrowings

     17,654        13,236        15,971        14,612  
  

 

 

    

 

 

    

 

 

    

 

 

 

Sub-total of cash inflow from financing activities

     17,654        13,236        15,971        14,612  
  

 

 

    

 

 

    

 

 

    

 

 

 

Cash paid for repayment of indebtedness

     (7,930      (13,947      (8,922      (14,368

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

     (1,652      (1,162      (1,203      (940

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

     (32      —          —          —    

Other cash paid for financing activities

     (5,659      (2,233      (3,368      (1,044
  

 

 

    

 

 

    

 

 

    

 

 

 

Sub-total of cash outflow from financing activities

     (15,241      (17,342      (13,493      (16,352
  

 

 

    

 

 

    

 

 

    

 

 

 

Net cash flow from financing activities

     2,413        (4,106      2,478        (1,740
  

 

 

    

 

 

    

 

 

    

 

 

 

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

     (36      (71      (23      (71
  

 

 

    

 

 

    

 

 

    

 

 

 

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

     1,199        (1,892      1,101        (1,638

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

     646        4,616        393        3,882  
  

 

 

    

 

 

    

 

 

    

 

 

 

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

     1,845        2,724        1,494        2,244  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

18


  4.2

Adjustment of Opening Balance of Related Items in the Financial Statements in 2019 Due to Initial Application of the New Financial Instrument Standards, New Revenue Standards and New Lease Standards

China Eastern Airlines Corporation Limited

Consolidated Balance Sheet (Unaudited)

 

RMB million                     
     31 December      1 January      Adjusted  
     2018      2019      amount  
     Consolidated      Consolidated         

Assets

        

Current assets

        

Monetary capital

     662        662     

Held-for-trading financial assets

     96        96     

Hedge instruments

     1        1     

Notes and trade receivables

     1,436        1,436     

Prepayments

     765        362        (403

Other receivables

     5,203        5,203     

Inventory

     1,950        1,950     

Held-for-sale assets

     11        11     

Non-current assets due within one year

     18        18     

Other current assets

     5,790        5,790     
  

 

 

    

 

 

    

 

 

 

Total current assets

     15,932        15,529        (403
  

 

 

    

 

 

    

 

 

 

Non-current assets

        

Long-term equity investment

     2,273        2,273     

Other equity instrument investments

     1,247        1,247     

Hedge instruments

     222        222     

Investment properties

     724        724     

Fixed assets

     175,675        81,259        (94,416

Right-of-use assets

     —          129,978        129,978  

Construction in progress

     26,554        26,554     

Intangible assets

     1,726        1,726     

Goodwill

     9,028        9,028     

Long-term deferred expenses

     1,832        1,832     

Deferred income tax assets

     207        702        495  

Other non-current assets

     1,345        1,345     
  

 

 

    

 

 

    

 

 

 

Total non-current assets

     220,833        256,890        36,057  
  

 

 

    

 

 

    

 

 

 

Total assets

     236,765        272,419        35,654  
  

 

 

    

 

 

    

 

 

 

 

19


  4.2

Adjustment of Opening Balance of Related Items in the Financial Statements in 2019 Due to Initial Application of the New Financial Instrument Standards, New Revenue Standards and New Lease Standards (Cont’d)

China Eastern Airlines Corporation Limited

Consolidated Balance Sheet (Unaudited) (Cont’d)

 

RMB million                     
     31 December      1 January      Adjusted  
     2018      2019      amount  
     Consolidated      Consolidated         
Liabilities and shareholders’ equity                     

Current liabilities

        

Short-term borrowings

     8,120        8,120     

Hedge instruments

     29        29     

Notes and trade payables

     12,166        12,166     

Account collected in advance

     6        6     

Contract liabilities

     8,811        8,811     

Staff remuneration payable

     2,854        2,854     

Tax payable

     2,065        2,065     

Other payables

     7,581        7,581     

Non-current liabilities due within one year

     16,551        21,507        4,956  

Other current liabilities

     14,878        14,878     
  

 

 

    

 

 

    

 

 

 

Total current liabilities

     73,061        78,017        4,956  
  

 

 

    

 

 

    

 

 

 

Non-current liabilities

        

Long-term borrowings

     8,490        8,490     

Bonds payable

     17,377        17,377     

Long-term payables

     69,355        1,292        (68,063

Long-term staff remuneration payable

     2,822        2,822     

Estimated liabilities

     2,761        8,832        6,071  

Lease liabilities

     —          94,609        94,609  

Deferred income

     1,294        1,294     

Other non-current liabilities

     2,169        2,169     

Deferred income tax liabilities

     84        —          (84
  

 

 

    

 

 

    

 

 

 

Total non-current liabilities

     104,352        136,885        32,533  
  

 

 

    

 

 

    

 

 

 

Total liabilities

     177,413        214,902        37,489  
  

 

 

    

 

 

    

 

 

 

 

20


  4.2

Adjustment of Opening Balance of Related Items in the Financial Statements in 2019 Due to Initial Application of the New Financial Instrument Standards, New Revenue Standards and New Lease Standards (Cont’d)

China Eastern Airlines Corporation Limited

Consolidated Balance Sheet (Unaudited) (Cont’d)

 

RMB million                     
     31 December      1 January      Adjusted  
     2018      2019      amount  
     Consolidated      Consolidated         

Liabilities and shareholders’ equity

        

Shareholders’ equity

        

Share capital

     14,467        14,467     

Capital reserves

     26,760        26,760     

Other comprehensive income

     (2,213      (2,213   

Surplus reserves

     570        570     

Undistributed profits

     16,181        14,516        (1,665
  

 

 

    

 

 

    

 

 

 

Total equity attributable to shareholders of parent company

     55,765        54,100        (1,665

Minority interests

     3,587        3,417        (170
  

 

 

    

 

 

    

 

 

 

Total shareholders’ equity

     59,352        57,517        (1,835
  

 

 

    

 

 

    

 

 

 

Total liabilities and shareholders’ equity

     236,765        272,419        35,654  
  

 

 

    

 

 

    

 

 

 

 

21


  4.2

Adjustment of Opening Balance of Related Items in the Financial Statements in 2019 Due to Initial Application of the New Financial Instrument Standards, New Revenue Standards and New Lease Standards (Cont’d)

China Eastern Airlines Corporation Limited

Balance Sheet of the Parent Company (Unaudited)

 

RMB million                     
     31 December      1 January      Adjusted  
     2018      2019      amount  
     Company      Company         

Assets

        

Current assets

        

Monetary capital

     400        400     

Held-for-trading financial assets

     96        96     

Hedge instruments

     1        1     

Notes and trade receivables

     1,177        1,177     

Prepayments

     242        74        (168

Other receivables

     11,413        11,413     

Inventory

     29        29     

Held-for-sale assets

     —          —       

Non-current assets due within one year

     4        4     

Other current assets

     5,224        5,224     
  

 

 

    

 

 

    

 

 

 

Total current assets

     18,586        18,418        (168
  

 

 

    

 

 

    

 

 

 

Non-current assets

        

Long-term equity investment

     15,195        15,195     

Other equity instrument investments

     1,149        1,149     

Hedge instruments

     222        222     

Investment properties

     181        181     

Fixed assets

     113,116        52,232        (60,884

Right-of-use assets

     —          77,296        77,296  

Construction in progress

     26,214        26,214     

Intangible assets

     1,140        1,140     

Goodwill

     9,028        9,028     

Long-term deferred expenses

     1,531        1,531     

Deferred income tax assets

     —             186  

Other non-current assets

     1,411        1,411     
  

 

 

    

 

 

    

 

 

 

Total non-current assets

     169,187        185,785        16,598  
  

 

 

    

 

 

    

 

 

 

Total assets

     187,773        204,203        16,430  
  

 

 

    

 

 

    

 

 

 

 

22


  4.2

Adjustment of Opening Balance of Related Items in the Financial Statements in 2019 Due to Initial Application of the New Financial Instrument Standards, New Revenue Standards and New Lease Standards (Cont’d)

China Eastern Airlines Corporation Limited

Balance Sheet of the Parent Company (Unaudited) (Cont’d)

 

RMB million                     
     31 December      1 January      Adjusted  
     2018      2019      amount  
     Company      Company         

Liabilities and shareholders’ equity

        

Current liabilities

        

Short-term borrowings

     16,357        16,357     

Hedge instruments

     29        29     

Notes and trade payables

     9,954        9,954     

Account collected in advance

     6        6     

Contract liabilities

     8,123        8,123     

Staff remuneration payable

     1,663        1,663     

Tax payable

     928        928     

Other payables

     9,084        9,084     

Non-current liabilities due within one year

     12,755        13,154        399  

Other current liabilities

     14,821        14,821     
  

 

 

    

 

 

    

 

 

 

Total current liabilities

     73,720        74,119        399  
  

 

 

    

 

 

    

 

 

 

Non-current liabilities

        

Long-term borrowings

     5,131        5,131     

Bonds payable

     14,880        14,880     

Long-term payables

     44,368        566        (43,802

Long-term staff remuneration payable

     2,206        2,206     

Estimated liabilities

     777        3,510        2,733  

Lease liabilities

     —          57,910        57,910  

Deferred income

     1,132        1,132     

Other non-current liabilities

     1,245        1,245     

Deferred income tax liabilities

     63        —          (63
  

 

 

    

 

 

    

 

 

 

Total non-current liabilities

     69,802        86,580        16,778  
  

 

 

    

 

 

    

 

 

 

Total liabilities

     143,522        160,699        17,177  
  

 

 

    

 

 

    

 

 

 

 

23


  4.2

Adjustment of Opening Balance of Related Items in the Financial Statements in 2019 Due to Initial Application of the New Financial Instrument Standards, New Revenue Standards and New Lease Standards (Cont’d)

China Eastern Airlines Corporation Limited

Balance Sheet of the Parent Company (Unaudited) (Cont’d)

 

RMB million                     
     31 December      1 January      Adjusted  
     2018      2019      amount  
     Company      Company         

Liabilities and shareholders’ equity

        

Shareholders’ equity

        

Share capital

     14,467        14,467     

Capital reserves

     27,470        27,470     

Other comprehensive income

     (1,550      (1,550   

Surplus reserves

     570        570     

Undistributed profits

     3,294        2,547        (747
  

 

 

    

 

 

    

 

 

 

Total equity attributable to shareholders of parent company

     44,251        43,504        (747

Minority interests

     —          —       
  

 

 

    

 

 

    

 

 

 

Total shareholders’ equity

     44,251        43,504        (747
  

 

 

    

 

 

    

 

 

 

Total liabilities and shareholders’ equity

     187,773        204,203        16,430  
  

 

 

    

 

 

    

 

 

 

 

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