⌘K

Third Quarterly Report of 2023

RNS Number : 5252R

Air China Ld

27 October 2023

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.

中國國際航空股份有限公司

AIR CHINA LIMITED

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

(Stock Code: 00753)

THIRD QUARTERLY REPORT OF 2023

This announcement is made pursuant to 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 board of directors (the "Board") of Air China Limited (the "Company" or "Air China", the Company together with its subsidiaries, the "Group") held a meeting of the Board on 26 October 2023 and passed the resolution approving the third quarterly report of 2023 (the "Quarterly Report") of the Company for the period ended 30 September 2023 prepared in accordance with the PRC Accounting Standards for Business Enterprises.

IMPORTANT NOTICE:

The Board and the supervisory committee of the Company together with the directors, supervisors and the senior management of the Company guarantee that the contents of the Quarterly Report are true, accurate and complete and do not contain any false representation, misleading statement or material omission, and shall jointly and severally accept legal liability.

The person in charge of the Company, person in charge of accounting function and person in charge of accounting department (accounting superintendent) hereby guarantee that the financial information set out in the Quarterly Report is true, accurate and complete.

Whether the financial statements of the third quarter are audited

Yes No

I. MAJOR FINANCIAL DATA

(1) Major accounting data and financial indicators

Unit: RMB'000

Items	The Reporting Period	Increase/ decrease of the Reporting Period as compared to the corresponding period of the previous year (%)	For the period from the beginning of the year to the end of the Reporting Period	Increase/ decrease for the period from the beginning of the year to the end of the Reporting Period as compared to the corresponding period of the previous year (%)

Revenue	45,863,652	152.89	105,476,845	150.61
Net profit attributable to shareholders of the listed company	4,242,149	N/A	791,421	N/A
Net profit attributable to shareholders of the listed company after deducting non-recurring profits and losses	4,065,035	N/A	-873,124	N/A
Net cash flows from operating activities	N/A	N/A	33,075,596	N/A
Basic earnings per share (RMB per share)	0.28	N/A	0.05	N/A
Diluted earnings per share (RMB per share)	N/A	N/A	N/A	N/A
Weighted average return on net assets (%)	11.46	Increased by 33.67 percentage points	2.05	Increased by 60.26 percentage points

	At the end of the Reporting Period	At the end of the previous year	Increase/ decrease at the end of the Reporting Period as compared to the end of the previous year (%)

Total assets	338,864,552	295,011,335	14.86
Owners' equity attributable to shareholders of the listed company	39,061,556	23,609,134	65.45

Note: The "Reporting Period" refers to the 3-month period from the beginning of this quarter to the end of this quarter, the same below.

(2) Items and amounts of non-recurring profits and losses

Unit: RMB'000

Items	Amounts for the Reporting Period	Amounts for the period from the beginning of the year to the end of the Reporting Period

Gains or losses on disposal of non-current assets	-143	673,841
Government subsidies recorded in the income statement for the current period (excluding those closely related to the Company's normal business and continuously entitled to in fixed amounts or quotas in accordance with the requirements of the state policy)	166.389	334.398
Gain or loss from change in fair value by holding financial assets held-for-trading, derivative financial assets, financial liabilities held-for-trading and derivative financial liabilities, and investment income from disposal of financial assets held-for-trading, derivative financial assets, financial liabilities held-for-trading and derivative financial liabilities as well as other debt investments, excluding the effective hedging businesses related to the normal operations of the Company	-61	814
Reversal of provision for impairment of receivable and contract assets that have undergone impairment test alone	215	3,559
Other non-operating income and expenses besides the above items	56,633	1,386,883
Less: Effect of income tax	2,587	80,371
Effect of non-controlling interests (after tax)	43,322	654,579

Total	177,114	1,664,545

Explanation of non-recurring profits and losses items listed in the "Interpretative Announcement for Information Disclosure of Companies That Issue Securities to the Public No.1 - Non-recurring Profits and Losses" (《公開發行證券的公司信息披露解釋性公告第1號－非經常性損益》) which are defined as recurring profits and losses items

Applicable Not applicable

(3) Changes of major accounting data and financial indicators and reasons for changes

Applicable Not applicable

Items	Percentage of Change (%)	Major Reasons

Revenue	150.61	With the increase in deployment of transportation capacity by the Company, and driven by the increase in both passenger load factor and price, the revenue increased significantly
Net profit attributable to shareholders of the listed company	N/A	With the increase in deployment of transportation capacity by the Company, and driven by the increase in both passenger load factor and price, the loss decreased significantly with a growth in profit
Net profit attributable to shareholders of the listed company after deducting non-recurring profits and losses	N/A	With the increase in deployment of transportation capacity by the Company, and driven by the increase in both passenger load factor and price, the loss decreased significantly with a growth in profit
Net cash flow from operating activities	N/A	With the increase in deployment of transportation capacity by the Company, and driven by the increase in both passenger load factor and price, the revenue increased significantly
Basic earnings per share (RMB per share)	N/A	With the increase in deployment of transportation capacity by the Company, and driven by the increase in both passenger load factor and price, the loss decreased significantly with a growth in profit
Weighted average return on net assets (%)	Increased by 60.26 percentage points	With the increase in deployment of transportation capacity by the Company, and driven by the increase in both passenger load factor and price, the loss decreased significantly with a growth in profit
Owners' equity attributable to shareholders of the listed company	65.45	Profit achieved during the current period, and the non-public issuance of shares of Air China

II. INFORMATION OF SHAREHOLDERS

(1) Total number of holders of ordinary shares, the number of holders of preference shares with restored voting rights and the particulars of the top 10 shareholders

Unit: share

Total number of holders of ordinary shares as at the end of the Reporting Period	162,801		Total number of holders of preference shares with restored voting rights as at the end of the Reporting Period (if any)			/

Particulars of the top 10 shareholders
Name of shareholder	Nature of shareholder	Number of shares held	Shareholding percentage	Number of shares held subject to selling restrictions	Shares pledged, marked or frozen
Name of shareholder	Nature of shareholder	Number of shares held	Shareholding percentage	Number of shares held subject to selling restrictions	Status	Number
			(%)

China National Aviation Holding Corporation Limited	State-owned legal person	6,566,761,847	40.53	614,525,150	Frozen	127,445,536
Cathay Pacific Airways Limited	Foreign legal person	2,633,725,455	16.26	0	Nil	0
HKSCC NOMINEES LIMITED	Foreign legal person	1,688,957,345	10.43	0	Nil	0
China National Aviation Corporation (Group) Limited	Foreign legal person	1,556,334,920	9.61	0	Frozen	36,454,464
China Securities Finance Corporation Limited	Others	311,302,365	1.92	0	Nil	0
China National Aviation Fuel Group Corporation	State-owned legal person	238,524,158	1.47	0	Nil	0
Hong Kong Securities Clearing Company Ltd.	Foreign legal person	156,551,132	0.97	0	Nil	0
China Structural Reform Fund Co., Ltd.	State-owned legal person	67,039,106	0.41	0	Nil	0
Basic Pension Fund 15022 Portfolio	Others	58,092,370	0.36	0	Nil	0
Bank of China Limited - China Merchants Anhua Bond Securities Investment Fund (中國銀行股份有限公司－招商安華債券型證券投資基金)	Others	49,638,500	0.31	0	Nil	0

Particulars of the top 10 shareholders not subject to selling restrictions
Name of shareholder	Number of tradable shares held not subject to selling restrictions	Class and number of shares
Name of shareholder		Class of shares	Number

China National Aviation Holding Corporation Limited	5,952,236,697	RMB ordinary shares	5,952,236,697
Cathay Pacific Airways Limited	2,633,725,455	Overseas listed foreign shares	2,633,725,455
HKSCC NOMINEES LIMITED	1,688,957,345	Overseas listed foreign shares	1,688,957,345
China National Aviation Corporation (Group) Limited	1,556,334,920	RMB ordinary shares	1,332,482,920
China National Aviation Corporation (Group) Limited	1,556,334,920	Overseas listed foreign shares	223,852,000
China Securities Finance Corporation Limited	311,302,365	RMB ordinary shares	311,302,365
China National Aviation Fuel Group Corporation	238,524,158	RMB ordinary shares	238,524,158
Hong Kong Securities Clearing Company Ltd.	156,551,132	RMB ordinary shares	156,551,132
China Structural Reform Fund Co., Ltd.	67,039,106	RMB ordinary shares	67,039,106
Basic Pension Fund 15022 Portfolio	58,092,370	RMB ordinary shares	58,092,370
Bank of China Limited - China Merchants Anhua Bond Securities Investment Fund (中國銀行股份有限公司－招商安華債券型證券投資基金)	49,638,500	RMB ordinary shares	49,638,500
Explanation on connected relationship or action in concert among the above shareholders	China National Aviation Corporation (Group) Limited ("CNACG") is a wholly-owned subsidiary of China National Aviation Holding Corporation Limited ("CNAHC"). Accordingly, China National Aviation Holding Corporation Limited is directly and indirectly interested in 50.14% of the shares of the Company.
Explanation on the participation of the top 10 shareholders and the top 10 shareholders not subject to selling restrictions in margin financing and securities lending as well as margin and securities refinancing business (if any)	Nil

1. HKSCC NOMINEES LIMITED is a subsidiary of The Stock Exchange of Hong Kong Limited and its principal business is acting as nominee for and on behalf of other corporate shareholders or individual shareholders. The 1,688,957,345 H shares held by it in the Company do not include the 166,852,000 shares held by it as nominee of CNACG.

2. According to the "Implementation Measures on Partial Transfer of State-owned Shares to the National Social Security Fund in the Domestic Securities Market" (Cai

Qi [2009] No. 94) (《境內證券市場轉持部分國有股充實全國社會保障基金實施辦

法》 (財企[2009]94號)) and the Notice ([2009] No. 63) jointly issued by the Ministry

of Finance, the State-owned Assets Supervision and Administration Commission of the State Council, China Securities Regulatory Commission and the National Council for Social Security Fund, 127,445,536 and 36,454,464 shares held by CNAHC, the controlling shareholder of the Company, and CNACG respectively are frozen at present.

III. OTHER ALERTS

Other important information that needs to be brought to the attention of investors regarding the Company's operations during the Reporting Period

Applicable Not applicable

On 30 August 2023, the resolutions regarding the amendments to the Articles of Association, the Rules and Procedures of Shareholders' Meetings and the Rules and Procedures of Meetings of the Board have been approved by the twenty-third meeting of the sixth session of the Board of the Company. For details, please refer to the relevant announcements published by the Company on the website of the Shanghai Stock Exchange (http://www.sse.com.cn/), China Securities Journal, Shanghai Securities News and Securities Daily on 31 August 2023. On 26 October 2023, the above resolutions have been approved by the 2023 third extraordinary general meeting, the 2023 first A shareholders' class meeting and the 2023 first H shareholders' class meeting of the Company. For details, please refer to the relevant announcements published by the Company on the website of the Shanghai Stock Exchange (http://www.sse.com.cn/), China Securities Journal, Shanghai Securities News and Securities Daily on 27 October 2023.

IV. QUARTERLY FINANCIAL STATEMENTS

(1) Type of audit opinion

Applicable Not applicable

(2) Financial statements

CONSOLIDATED BALANCE SHEET

30 September 2023

Prepared by Air China Limited

Unit: RMB'000 (Unaudited)

Items	30 September 2023	31 December 2022

CURRENT ASSETS:
Cash and bank balance	22,219,322	11,435,877
Provisions on payables
Contributions made
Financial assets held-for-trading	2,687	3,398
Derivative financial assets
Bills receivable	31,497	7,483
Accounts receivable	3,343,487	1,649,356
Receivables financing
Prepayments	607,357	368,692
Premium receivable
Receivables on reinsurance
Provisions for reinsurance contracts
Other receivables	5,387,334	2,807,726
Including: Interest receivable
Dividend receivable
Purchase of financial assets resold
Inventories	3,916,847	2,557,823
Contract assets
Held-for-sale assets	66,481	1,302
Non-current assets due within a year
Other current assets	2,938,315	3,413,474
Total current assets	38,513,327	22,245,131

Items	30 September 2023	31 December 2022

NON-CURRENT ASSETS:
Loans and advances
Debt investments
Other debt investments	1,386,956	1,360,982
Long-term receivables	899,034	539,624
Long-term equity investments	14,671,191	12,574,373
Investments in other equity instruments	738,620	243,760
Other non-current financial assets
Investment properties	324,845	106,118
Fixed assets	97,833,833	86,369,754
Construction in progress	37,912,741	32,908,551
Biological assets for production
Oil and gas assets
Right-of-use assets	122,830,591	122,591,793
Intangible assets	5,497,440	4,300,216
Development expenses
Goodwill	4,097,942	1,102,185
Long-term deferred expenses	272,315	249,268
Deferred tax assets	13,878,557	10,417,452
Other non-current assets	7,160	2,128
Total non-current assets	300,351,225	272,766,204
Total assets	338,864,552	295,011,335

Items	30 September 2023	31 December 2022

CURRENT LIABILITIES:
Short-term loans	23,341,530	19,946,147
Short-term financing bonds payable		2,006,149
Borrowings from central bank
Contributions received
Financial liabilities held-for-trading
Derivative financial liabilities
Bills payable	240,649
Accounts payable	22,734,330	11,628,611
Air traffic liabilities	7,634,011	2,757,601
Receipts in advance	150,970	58,970
Contract liabilities	1,412,321	1,095,185
Sale of financial assets repurchased
Deposits from clients and placements from other banks
Brokerage payable
Underwriting fees payable
Employee compensations payable	4,315,267	4,317,738
Taxes payable	442,637	275,930
Other payables	15,253,529	13,131,744
Including: Interest payable
Dividend payable
Fees and commissions payable
Amounts payable on reinsurance
Held-for-sale liabilities
Non-current liabilities due within a year	37,374,032	37,264,533
Other current liabilities
Total current liabilities	112,899,276	92,482,608

Items	30 September 2023	31 December 2022

NON-CURRENT LIABILITIES:
Reserves on insurance contracts
Long-term loans	72,980,897	66,868,774
Debentures payable	11,196,030	11,193,342
Including: Preference shares
Perpetual bonds
Lease liabilities	68,640,093	76,897,347
Long-term payables	28,077,364	20,551,757
Long-term employee compensation payables	196,402	202,016
Accrued liabilities	4,253,291	3,090,965
Deferred income	430,713	418,200
Deferred tax liabilities	371,164	323,297
Other non-current liabilities	1,793,752	1,422,843
Total non-current liabilities	187,939,706	180,968,541
Total liabilities	300,838,982	273,451,149

OWNERS' EQUITY (OR SHAREHOLDERS' EQUITY):
Paid-up capital (or share capital)	16,200,793	14,524,815
Other equity instruments
Including: Preference shares
Perpetual bonds
Capital reserve	39,587,727	26,270,841
Less: Treasury shares
Other comprehensive income	208,955	421,075
Special reserves	3,047
Surplus reserves	11,564,287	11,564,287
General risk provisions	137,138	137,138
Retained earnings	-28,640,391	-29,309,022
Total owners' equity (or shareholders' equity) attributable to the parent company	39,061,556	23,609,134
Non-controlling interests	-1,035,986	-2,048,948
Total owners' equity (or shareholders' equity)	38,025,570	21,560,186
Total liabilities and owners' equity (or shareholders' equity)	338,864,552	295,011,335

Person in charge of the Company: Mr. Ma Chongxian Person in charge of accounting function: Mr. Sun Yuquan Person in charge of accounting department: Mr. Lyu Lingfei

CONSOLIDATED INCOME STATEMENT

January to September 2023

Prepared by Air China Limited

Unit: RMB'000 (Unaudited)

Items	First three quarters of 2023 (January to September)	First three quarters of 2022 (January to September)

I. Total revenue from operations	105,476,845	42,088,565
Including: Operating income	105,476,845	42,088,565
Interest income
Premium earned
Fees and commission income

II. Total operating cost	111,920,572	76,941,159
Including: Operating costs	97,359,086	61,410,372
Interest expenses
Fees and commission expenses
Returned premium
Net reimbursement paid
Net amounts of provisions on insurance obligations drawn
Bonus paid on insurance policy
Reinsurance premium
Taxes and other levies	259,123	96,654
Selling expenses	3,996,379	2,712,924
General and administrative expenses	3,729,604	3,231,633
R&D expenses	213,842	126,195
Finance expenses	6,362,538	9,363,381
Including: Interest expenses	5,323,094	4,783,027
Interest income	481,087	159,173
Add: Other income	3,208,572	2,153,587
Investment income (loss is represented by "-" sign)	2,240,021	-642,522
Including: Share of profits of associates and joint ventures	2,189,703	-683,153
Gains on derecognition of financial assets measured at amortised cost
Exchange gains (loss is represented by "-" sign)
Gains from net exposure to hedging (loss is represented by "-" sign)
Gains from changes in fair value (loss is represented by "-" sign)	-711	-624

Items	First three quarters of 2023 (January to September)	First three quarters of 2022 (January to September)

Impairment loss of credit (loss is represented by "-" sign)	-16,331	-218
Impairment loss of assets (loss is represented by "-" sign)	-107,432
Gains from disposal of assets (loss is represented by "-" sign)	689,664	-3,176
III. Profit from operations (loss is represented by "-" sign)	-429,944	-33,345,547
Add: Non-operating income	1,468,565	76,286
Less: Non-operating expenses	97,505	93,094

IV. Total profit (total loss is represented by "-" sign)	941,116	-33,362,355
Less: Income tax expenses	-245,721	-950,069

V. Net profit (net loss is represented by "-" sign)	1,186,837	-32,412,286
(I) Classified by continuity of operations
1. Net profit from continuing operations (net loss is represented by "-" sign)	1,186,837	-32,412,286
2. Net profit from discontinued operation (net loss is represented by "-" sign)
(II) Classified by ownership
1. Net profits attributable to shareholders of the parent company (net loss is represented by "-" sign)	791,421	-28,103,264
2. Profit or loss attributable to non-controlling interests (net loss is represented by "-" sign)	395,416	-4,309,022

VI. Other comprehensive income after tax, net	-91,351	1,883,524
(I) Other comprehensive income after tax attributable to owners of the parent company, net	-65,958	1,850,445
1. Other comprehensive income that cannot be subsequently reclassified to profit or loss	-23,673	2,659
(1) Changes arising on remeasurement of defined benefit plans	33	-260
(2) Other comprehensive income accounted for using the equity method that cannot be reclassified to profit or loss		-10
(3) Change in fair value of investments in other equity instruments	-23,706	2,929
(4) Change in fair value of own credit risk of the Company

Items	First three quarters of 2023 (January to September)	First three quarters of 2022 (January to September)

2. Other comprehensive income that will be reclassified to profit or loss	-42,285	1,847,786
(1) Other comprehensive income accounted for using the equity method that may be reclassified to profit or loss	-473,547	269,267
(2) Change in fair value of other debt investments	159	-132
(3) Amount of financial assets reclassified into other comprehensive income
(4) Provisions for credit impairment of other debt investments	-344	-1,210
(5) Reserve for cash flow hedging
(6) Exchange difference on translation of financial statements in foreign currency	431,447	1,579,861
(7) Others
(II) Other comprehensive income after tax attributable to non- controlling interests, net	-25,393	33,079

VII. Total comprehensive income	1,095,486	-30,528,762
(I) Total comprehensive income attributable to owners of the parent company	725,463	-26,252,819
(II) Total comprehensive income attributable to non-controlling interests	370,023	-4,275,943

VIII. Earnings per share:
(I) Basic earnings per share (RMB per share)	0.05	-2.05
(II) Diluted earnings per share (RMB per share)	N/A	N/A

For business combination under common control during the current period, the net profit of merged party before the business combination is RMB0, and the net profit of the merged party for the last period is RMB0.

Person in charge of the Company: Mr. Ma Chongxian Person in charge of accounting function: Mr. Sun Yuquan Person in charge of accounting department: Mr. Lyu Lingfei

CONSOLIDATED CASH FLOW STATEMENT

January to September 2023

Prepared by Air China Limited

Unit: RMB'000 (Unaudited)

Items	First three quarters of 2023 (January to September)	First three quarters of 2022 (January to September)

I. Cash flows from operating activities:
Cash received from sales of goods and provision of services	117,873,834	44,775,183
Net increase in deposits from clients and placements from banks
Net increase in borrowings from central bank
Net increase in contributions received from other financial institutions
Cash received from premiums of original insurance contracts
Net cash receipt from reinsurance operations
Net increase in reserve of the insured and investment
Cash received from interest, fees and commission
Net increase in contributions received
Net increase in cash from repurchase operations
Net cash receipt from securities trading as agent
Refund of taxes and levies	1,260,276	3,667,415
Other cash received relating to operating activities	3,970,888	3,866,614
Subtotal of cash inflows of operating activities	123,104,998	52,309,212
Cash paid for goods purchased and services received	60,606,339	33,419,398
Net increase in loans and advances to clients
Net increase in deposits in central bank and other banks
Cash paid in respect of claims under original insurance contracts
Net increase in contributions made
Cash paid for interest, fees and commissions
Cash paid for bonus paid on insurance policy
Cash paid to or on behalf of employees	22,312,292	18,342,731
Taxes and levies paid	1,425,490	895,130
Other cash paid relating to operating activities	5,685,281	4,547,513
Subtotal of cash outflows from operating activities	90,029,402	57,204,772
Net cash flows from operating activities	33,075,596	-4,895,560

Items	First three quarters of 2023 (January to September)	First three quarters of 2022 (January to September)

II. Cash flows from investing activities:
Cash received from sale and redemption of investments	695,882	3,690
Recovery of the secured bank deposits	2,379	15,081
Cash received from investment income	161,483	247,381
Net cash received for acquisition of subsidiaries and other business units	5,392,113
Net cash proceeds from disposal of fixed assets, intangible assets and other long-term assets	802,934	569,232
Net cash proceeds from disposal of subsidiaries and other business units
Other cash received relating to investing activities	472,732	159,173
Subtotal of cash inflows from investing activities	7,527,523	994,557
Cash paid for purchase and construction of fixed assets, intangible assets and other long-term assets	13,758,422	5,685,046
Cash paid for investments	171,838	961,140
Net increase in secured loans
Net cash payments for acquisition of subsidiaries and other business units
Increase in secured bank deposits	6,407	1,557
Other cash paid relating to investing activities
Subtotal of cash outflows from investing activities	13,936,667	6,647,743
Net cash flows from investing activities	-6,409,144	-5,653,186

III. Cash flows from financing activities:
Cash received from capital injection	18,393,017
Including: Cash received from capital injection of non-controlling shareholders in subsidiaries
Cash received from issuance of debentures		13,950,000
Cash received from borrowings	40,176,857	79,739,578
Other cash received relating to financing activities
Subtotal of cash inflows from financing activities	58,569,874	93,689,578
Cash paid for repayment of borrowings	39,733,328	51,580,318
Cash paid for repayment of debentures	9,500,000	17,000,000
Cash paid for distribution of dividends, profits or payment of interest expenses	5,653,200	5,001,317
Including: Dividends and profits paid to non-controlling shareholders by subsidiaries	9,890	644
Cash paid for leases	19,592,765	11,758,167
Other cash paid relating to financing activities	13
Subtotal of cash outflows from financing activities	74,479,306	85,339,802
Net cash flows from financing activities	-15,909,432	8,349,776

Items	First three quarters of 2023 (January to September)	First three quarters of 2022 (January to September)

IV. Effect of exchange rate changes on cash and cash equivalents	145,037	39,950

V. Net increase in cash and cash equivalents	10,902,057	-2,159,020
Add: Balance of cash and cash equivalents as at the beginning of the period	10,607,711	15,934,713

VI. Balance of cash and cash equivalents as at the end of the period	21,509,768	13,775,693

Person in charge of the Company: Mr. Ma Chongxian Person in charge of accounting function: Mr. Sun Yuquan Person in charge of accounting department: Mr. Lyu Lingfei

Adjustments made to the financial statements as at the beginning of the year for the initial implementation of New Accounting Standards or interpretation of standards since 2023

Applicable Not applicable

The announcement is hereby given.

By Order of the Board

Air China Limited

Huang Bin Huen Ho Yin

Joint Company Secretaries

Beijing, the PRC, 26 October 2023

As at the date of this announcement, the directors of the Company are Mr. Ma Chongxian, Mr. Wang Mingyuan, Mr. Feng Gang, Mr. Patrick Healy, Mr. Xiao Peng, Mr. Li Fushen*, Mr. He Yun*, Mr. Xu Junxin* and Ms. Winnie Tam Wan-chi*.

* Independent non-executive director of the Company

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QRTFEMSDWEDSELS

Third Quarterly Report of 2023 - Air China Limited | RNS | Ticker

RNS Number : 5252R

Air China Ld

27 October 2023

中國國際航空股份有限公司

AIR CHINA LIMITED

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

(Stock Code: 00753)

THIRD QUARTERLY REPORT OF 2023

IMPORTANT NOTICE:

Whether the financial statements of the third quarter are audited

Yes No

I. MAJOR FINANCIAL DATA

(1) Major accounting data and financial indicators

Unit: RMB'000

Items	The Reporting Period	Increase/ decrease of the Reporting Period as compared to the corresponding period of the previous year (%)	For the period from the beginning of the year to the end of the Reporting Period	Increase/ decrease for the period from the beginning of the year to the end of the Reporting Period as compared to the corresponding period of the previous year (%)

Revenue	45,863,652	152.89	105,476,845	150.61
Net profit attributable to shareholders of the listed company	4,242,149	N/A	791,421	N/A
Net profit attributable to shareholders of the listed company after deducting non-recurring profits and losses	4,065,035	N/A	-873,124	N/A
Net cash flows from operating activities	N/A	N/A	33,075,596	N/A
Basic earnings per share (RMB per share)	0.28	N/A	0.05	N/A
Diluted earnings per share (RMB per share)	N/A	N/A	N/A	N/A
Weighted average return on net assets (%)	11.46	Increased by 33.67 percentage points	2.05	Increased by 60.26 percentage points

	At the end of the Reporting Period	At the end of the previous year	Increase/ decrease at the end of the Reporting Period as compared to the end of the previous year (%)

Total assets	338,864,552	295,011,335	14.86
Owners' equity attributable to shareholders of the listed company	39,061,556	23,609,134	65.45

Note: The "Reporting Period" refers to the 3-month period from the beginning of this quarter to the end of this quarter, the same below.

(2) Items and amounts of non-recurring profits and losses

Unit: RMB'000

Items	Amounts for the Reporting Period	Amounts for the period from the beginning of the year to the end of the Reporting Period

Gains or losses on disposal of non-current assets	-143	673,841
Government subsidies recorded in the income statement for the current period (excluding those closely related to the Company's normal business and continuously entitled to in fixed amounts or quotas in accordance with the requirements of the state policy)	166.389	334.398
Gain or loss from change in fair value by holding financial assets held-for-trading, derivative financial assets, financial liabilities held-for-trading and derivative financial liabilities, and investment income from disposal of financial assets held-for-trading, derivative financial assets, financial liabilities held-for-trading and derivative financial liabilities as well as other debt investments, excluding the effective hedging businesses related to the normal operations of the Company	-61	814
Reversal of provision for impairment of receivable and contract assets that have undergone impairment test alone	215	3,559
Other non-operating income and expenses besides the above items	56,633	1,386,883
Less: Effect of income tax	2,587	80,371
Effect of non-controlling interests (after tax)	43,322	654,579

Total	177,114	1,664,545

Applicable Not applicable

(3) Changes of major accounting data and financial indicators and reasons for changes

Applicable Not applicable

Items	Percentage of Change (%)	Major Reasons

Revenue	150.61	With the increase in deployment of transportation capacity by the Company, and driven by the increase in both passenger load factor and price, the revenue increased significantly
Net profit attributable to shareholders of the listed company	N/A	With the increase in deployment of transportation capacity by the Company, and driven by the increase in both passenger load factor and price, the loss decreased significantly with a growth in profit
Net profit attributable to shareholders of the listed company after deducting non-recurring profits and losses	N/A	With the increase in deployment of transportation capacity by the Company, and driven by the increase in both passenger load factor and price, the loss decreased significantly with a growth in profit
Net cash flow from operating activities	N/A	With the increase in deployment of transportation capacity by the Company, and driven by the increase in both passenger load factor and price, the revenue increased significantly
Basic earnings per share (RMB per share)	N/A	With the increase in deployment of transportation capacity by the Company, and driven by the increase in both passenger load factor and price, the loss decreased significantly with a growth in profit
Weighted average return on net assets (%)	Increased by 60.26 percentage points	With the increase in deployment of transportation capacity by the Company, and driven by the increase in both passenger load factor and price, the loss decreased significantly with a growth in profit
Owners' equity attributable to shareholders of the listed company	65.45	Profit achieved during the current period, and the non-public issuance of shares of Air China

II. INFORMATION OF SHAREHOLDERS

(1) Total number of holders of ordinary shares, the number of holders of preference shares with restored voting rights and the particulars of the top 10 shareholders

Unit: share

Total number of holders of ordinary shares as at the end of the Reporting Period	162,801		Total number of holders of preference shares with restored voting rights as at the end of the Reporting Period (if any)			/

Particulars of the top 10 shareholders
Name of shareholder	Nature of shareholder	Number of shares held	Shareholding percentage	Number of shares held subject to selling restrictions	Shares pledged, marked or frozen
Name of shareholder	Nature of shareholder	Number of shares held	Shareholding percentage	Number of shares held subject to selling restrictions	Status	Number
			(%)

China National Aviation Holding Corporation Limited	State-owned legal person	6,566,761,847	40.53	614,525,150	Frozen	127,445,536
Cathay Pacific Airways Limited	Foreign legal person	2,633,725,455	16.26	0	Nil	0
HKSCC NOMINEES LIMITED	Foreign legal person	1,688,957,345	10.43	0	Nil	0
China National Aviation Corporation (Group) Limited	Foreign legal person	1,556,334,920	9.61	0	Frozen	36,454,464
China Securities Finance Corporation Limited	Others	311,302,365	1.92	0	Nil	0
China National Aviation Fuel Group Corporation	State-owned legal person	238,524,158	1.47	0	Nil	0
Hong Kong Securities Clearing Company Ltd.	Foreign legal person	156,551,132	0.97	0	Nil	0
China Structural Reform Fund Co., Ltd.	State-owned legal person	67,039,106	0.41	0	Nil	0
Basic Pension Fund 15022 Portfolio	Others	58,092,370	0.36	0	Nil	0
Bank of China Limited - China Merchants Anhua Bond Securities Investment Fund (中國銀行股份有限公司－招商安華債券型證券投資基金)	Others	49,638,500	0.31	0	Nil	0

Particulars of the top 10 shareholders not subject to selling restrictions
Name of shareholder	Number of tradable shares held not subject to selling restrictions	Class and number of shares
Name of shareholder		Class of shares	Number

China National Aviation Holding Corporation Limited	5,952,236,697	RMB ordinary shares	5,952,236,697
Cathay Pacific Airways Limited	2,633,725,455	Overseas listed foreign shares	2,633,725,455
HKSCC NOMINEES LIMITED	1,688,957,345	Overseas listed foreign shares	1,688,957,345
China National Aviation Corporation (Group) Limited	1,556,334,920	RMB ordinary shares	1,332,482,920
China National Aviation Corporation (Group) Limited	1,556,334,920	Overseas listed foreign shares	223,852,000
China Securities Finance Corporation Limited	311,302,365	RMB ordinary shares	311,302,365
China National Aviation Fuel Group Corporation	238,524,158	RMB ordinary shares	238,524,158
Hong Kong Securities Clearing Company Ltd.	156,551,132	RMB ordinary shares	156,551,132
China Structural Reform Fund Co., Ltd.	67,039,106	RMB ordinary shares	67,039,106
Basic Pension Fund 15022 Portfolio	58,092,370	RMB ordinary shares	58,092,370
Bank of China Limited - China Merchants Anhua Bond Securities Investment Fund (中國銀行股份有限公司－招商安華債券型證券投資基金)	49,638,500	RMB ordinary shares	49,638,500
Explanation on connected relationship or action in concert among the above shareholders	China National Aviation Corporation (Group) Limited ("CNACG") is a wholly-owned subsidiary of China National Aviation Holding Corporation Limited ("CNAHC"). Accordingly, China National Aviation Holding Corporation Limited is directly and indirectly interested in 50.14% of the shares of the Company.
Explanation on the participation of the top 10 shareholders and the top 10 shareholders not subject to selling restrictions in margin financing and securities lending as well as margin and securities refinancing business (if any)	Nil

2. According to the "Implementation Measures on Partial Transfer of State-owned Shares to the National Social Security Fund in the Domestic Securities Market" (Cai

Qi [2009] No. 94) (《境內證券市場轉持部分國有股充實全國社會保障基金實施辦

法》 (財企[2009]94號)) and the Notice ([2009] No. 63) jointly issued by the Ministry

III. OTHER ALERTS

Other important information that needs to be brought to the attention of investors regarding the Company's operations during the Reporting Period

Applicable Not applicable

IV. QUARTERLY FINANCIAL STATEMENTS

(1) Type of audit opinion

Applicable Not applicable

(2) Financial statements

CONSOLIDATED BALANCE SHEET

30 September 2023

Prepared by Air China Limited

Unit: RMB'000 (Unaudited)

Items	30 September 2023	31 December 2022

CURRENT ASSETS:
Cash and bank balance	22,219,322	11,435,877
Provisions on payables
Contributions made
Financial assets held-for-trading	2,687	3,398
Derivative financial assets
Bills receivable	31,497	7,483
Accounts receivable	3,343,487	1,649,356
Receivables financing
Prepayments	607,357	368,692
Premium receivable
Receivables on reinsurance
Provisions for reinsurance contracts
Other receivables	5,387,334	2,807,726
Including: Interest receivable
Dividend receivable
Purchase of financial assets resold
Inventories	3,916,847	2,557,823
Contract assets
Held-for-sale assets	66,481	1,302
Non-current assets due within a year
Other current assets	2,938,315	3,413,474
Total current assets	38,513,327	22,245,131

Items	30 September 2023	31 December 2022

NON-CURRENT ASSETS:
Loans and advances
Debt investments
Other debt investments	1,386,956	1,360,982
Long-term receivables	899,034	539,624
Long-term equity investments	14,671,191	12,574,373
Investments in other equity instruments	738,620	243,760
Other non-current financial assets
Investment properties	324,845	106,118
Fixed assets	97,833,833	86,369,754
Construction in progress	37,912,741	32,908,551
Biological assets for production
Oil and gas assets
Right-of-use assets	122,830,591	122,591,793
Intangible assets	5,497,440	4,300,216
Development expenses
Goodwill	4,097,942	1,102,185
Long-term deferred expenses	272,315	249,268
Deferred tax assets	13,878,557	10,417,452
Other non-current assets	7,160	2,128
Total non-current assets	300,351,225	272,766,204
Total assets	338,864,552	295,011,335

Items	30 September 2023	31 December 2022

CURRENT LIABILITIES:
Short-term loans	23,341,530	19,946,147
Short-term financing bonds payable		2,006,149
Borrowings from central bank
Contributions received
Financial liabilities held-for-trading
Derivative financial liabilities
Bills payable	240,649
Accounts payable	22,734,330	11,628,611
Air traffic liabilities	7,634,011	2,757,601
Receipts in advance	150,970	58,970
Contract liabilities	1,412,321	1,095,185
Sale of financial assets repurchased
Deposits from clients and placements from other banks
Brokerage payable
Underwriting fees payable
Employee compensations payable	4,315,267	4,317,738
Taxes payable	442,637	275,930
Other payables	15,253,529	13,131,744
Including: Interest payable
Dividend payable
Fees and commissions payable
Amounts payable on reinsurance
Held-for-sale liabilities
Non-current liabilities due within a year	37,374,032	37,264,533
Other current liabilities
Total current liabilities	112,899,276	92,482,608

Items	30 September 2023	31 December 2022

NON-CURRENT LIABILITIES:
Reserves on insurance contracts
Long-term loans	72,980,897	66,868,774
Debentures payable	11,196,030	11,193,342
Including: Preference shares
Perpetual bonds
Lease liabilities	68,640,093	76,897,347
Long-term payables	28,077,364	20,551,757
Long-term employee compensation payables	196,402	202,016
Accrued liabilities	4,253,291	3,090,965
Deferred income	430,713	418,200
Deferred tax liabilities	371,164	323,297
Other non-current liabilities	1,793,752	1,422,843
Total non-current liabilities	187,939,706	180,968,541
Total liabilities	300,838,982	273,451,149

OWNERS' EQUITY (OR SHAREHOLDERS' EQUITY):
Paid-up capital (or share capital)	16,200,793	14,524,815
Other equity instruments
Including: Preference shares
Perpetual bonds
Capital reserve	39,587,727	26,270,841
Less: Treasury shares
Other comprehensive income	208,955	421,075
Special reserves	3,047
Surplus reserves	11,564,287	11,564,287
General risk provisions	137,138	137,138
Retained earnings	-28,640,391	-29,309,022
Total owners' equity (or shareholders' equity) attributable to the parent company	39,061,556	23,609,134
Non-controlling interests	-1,035,986	-2,048,948
Total owners' equity (or shareholders' equity)	38,025,570	21,560,186
Total liabilities and owners' equity (or shareholders' equity)	338,864,552	295,011,335

Person in charge of the Company: Mr. Ma Chongxian Person in charge of accounting function: Mr. Sun Yuquan Person in charge of accounting department: Mr. Lyu Lingfei

CONSOLIDATED INCOME STATEMENT

January to September 2023

Prepared by Air China Limited

Unit: RMB'000 (Unaudited)

Items	First three quarters of 2023 (January to September)	First three quarters of 2022 (January to September)

I. Total revenue from operations	105,476,845	42,088,565
Including: Operating income	105,476,845	42,088,565
Interest income
Premium earned
Fees and commission income

II. Total operating cost	111,920,572	76,941,159
Including: Operating costs	97,359,086	61,410,372
Interest expenses
Fees and commission expenses
Returned premium
Net reimbursement paid
Net amounts of provisions on insurance obligations drawn
Bonus paid on insurance policy
Reinsurance premium
Taxes and other levies	259,123	96,654
Selling expenses	3,996,379	2,712,924
General and administrative expenses	3,729,604	3,231,633
R&D expenses	213,842	126,195
Finance expenses	6,362,538	9,363,381
Including: Interest expenses	5,323,094	4,783,027
Interest income	481,087	159,173
Add: Other income	3,208,572	2,153,587
Investment income (loss is represented by "-" sign)	2,240,021	-642,522
Including: Share of profits of associates and joint ventures	2,189,703	-683,153
Gains on derecognition of financial assets measured at amortised cost
Exchange gains (loss is represented by "-" sign)
Gains from net exposure to hedging (loss is represented by "-" sign)
Gains from changes in fair value (loss is represented by "-" sign)	-711	-624

Items	First three quarters of 2023 (January to September)	First three quarters of 2022 (January to September)

Impairment loss of credit (loss is represented by "-" sign)	-16,331	-218
Impairment loss of assets (loss is represented by "-" sign)	-107,432
Gains from disposal of assets (loss is represented by "-" sign)	689,664	-3,176
III. Profit from operations (loss is represented by "-" sign)	-429,944	-33,345,547
Add: Non-operating income	1,468,565	76,286
Less: Non-operating expenses	97,505	93,094

IV. Total profit (total loss is represented by "-" sign)	941,116	-33,362,355
Less: Income tax expenses	-245,721	-950,069

V. Net profit (net loss is represented by "-" sign)	1,186,837	-32,412,286
(I) Classified by continuity of operations
1. Net profit from continuing operations (net loss is represented by "-" sign)	1,186,837	-32,412,286
2. Net profit from discontinued operation (net loss is represented by "-" sign)
(II) Classified by ownership
1. Net profits attributable to shareholders of the parent company (net loss is represented by "-" sign)	791,421	-28,103,264
2. Profit or loss attributable to non-controlling interests (net loss is represented by "-" sign)	395,416	-4,309,022

VI. Other comprehensive income after tax, net	-91,351	1,883,524
(I) Other comprehensive income after tax attributable to owners of the parent company, net	-65,958	1,850,445
1. Other comprehensive income that cannot be subsequently reclassified to profit or loss	-23,673	2,659
(1) Changes arising on remeasurement of defined benefit plans	33	-260
(2) Other comprehensive income accounted for using the equity method that cannot be reclassified to profit or loss		-10
(3) Change in fair value of investments in other equity instruments	-23,706	2,929
(4) Change in fair value of own credit risk of the Company

Items	First three quarters of 2023 (January to September)	First three quarters of 2022 (January to September)

2. Other comprehensive income that will be reclassified to profit or loss	-42,285	1,847,786
(1) Other comprehensive income accounted for using the equity method that may be reclassified to profit or loss	-473,547	269,267
(2) Change in fair value of other debt investments	159	-132
(3) Amount of financial assets reclassified into other comprehensive income
(4) Provisions for credit impairment of other debt investments	-344	-1,210
(5) Reserve for cash flow hedging
(6) Exchange difference on translation of financial statements in foreign currency	431,447	1,579,861
(7) Others
(II) Other comprehensive income after tax attributable to non- controlling interests, net	-25,393	33,079

VII. Total comprehensive income	1,095,486	-30,528,762
(I) Total comprehensive income attributable to owners of the parent company	725,463	-26,252,819
(II) Total comprehensive income attributable to non-controlling interests	370,023	-4,275,943

VIII. Earnings per share:
(I) Basic earnings per share (RMB per share)	0.05	-2.05
(II) Diluted earnings per share (RMB per share)	N/A	N/A

Person in charge of the Company: Mr. Ma Chongxian Person in charge of accounting function: Mr. Sun Yuquan Person in charge of accounting department: Mr. Lyu Lingfei

CONSOLIDATED CASH FLOW STATEMENT

January to September 2023

Prepared by Air China Limited

Unit: RMB'000 (Unaudited)

Items	First three quarters of 2023 (January to September)	First three quarters of 2022 (January to September)

I. Cash flows from operating activities:
Cash received from sales of goods and provision of services	117,873,834	44,775,183
Net increase in deposits from clients and placements from banks
Net increase in borrowings from central bank
Net increase in contributions received from other financial institutions
Cash received from premiums of original insurance contracts
Net cash receipt from reinsurance operations
Net increase in reserve of the insured and investment
Cash received from interest, fees and commission
Net increase in contributions received
Net increase in cash from repurchase operations
Net cash receipt from securities trading as agent
Refund of taxes and levies	1,260,276	3,667,415
Other cash received relating to operating activities	3,970,888	3,866,614
Subtotal of cash inflows of operating activities	123,104,998	52,309,212
Cash paid for goods purchased and services received	60,606,339	33,419,398
Net increase in loans and advances to clients
Net increase in deposits in central bank and other banks
Cash paid in respect of claims under original insurance contracts
Net increase in contributions made
Cash paid for interest, fees and commissions
Cash paid for bonus paid on insurance policy
Cash paid to or on behalf of employees	22,312,292	18,342,731
Taxes and levies paid	1,425,490	895,130
Other cash paid relating to operating activities	5,685,281	4,547,513
Subtotal of cash outflows from operating activities	90,029,402	57,204,772
Net cash flows from operating activities	33,075,596	-4,895,560

Items	First three quarters of 2023 (January to September)	First three quarters of 2022 (January to September)

II. Cash flows from investing activities:
Cash received from sale and redemption of investments	695,882	3,690
Recovery of the secured bank deposits	2,379	15,081
Cash received from investment income	161,483	247,381
Net cash received for acquisition of subsidiaries and other business units	5,392,113
Net cash proceeds from disposal of fixed assets, intangible assets and other long-term assets	802,934	569,232
Net cash proceeds from disposal of subsidiaries and other business units
Other cash received relating to investing activities	472,732	159,173
Subtotal of cash inflows from investing activities	7,527,523	994,557
Cash paid for purchase and construction of fixed assets, intangible assets and other long-term assets	13,758,422	5,685,046
Cash paid for investments	171,838	961,140
Net increase in secured loans
Net cash payments for acquisition of subsidiaries and other business units
Increase in secured bank deposits	6,407	1,557
Other cash paid relating to investing activities
Subtotal of cash outflows from investing activities	13,936,667	6,647,743
Net cash flows from investing activities	-6,409,144	-5,653,186

III. Cash flows from financing activities:
Cash received from capital injection	18,393,017
Including: Cash received from capital injection of non-controlling shareholders in subsidiaries
Cash received from issuance of debentures		13,950,000
Cash received from borrowings	40,176,857	79,739,578
Other cash received relating to financing activities
Subtotal of cash inflows from financing activities	58,569,874	93,689,578
Cash paid for repayment of borrowings	39,733,328	51,580,318
Cash paid for repayment of debentures	9,500,000	17,000,000
Cash paid for distribution of dividends, profits or payment of interest expenses	5,653,200	5,001,317
Including: Dividends and profits paid to non-controlling shareholders by subsidiaries	9,890	644
Cash paid for leases	19,592,765	11,758,167
Other cash paid relating to financing activities	13
Subtotal of cash outflows from financing activities	74,479,306	85,339,802
Net cash flows from financing activities	-15,909,432	8,349,776

Items	First three quarters of 2023 (January to September)	First three quarters of 2022 (January to September)

IV. Effect of exchange rate changes on cash and cash equivalents	145,037	39,950

V. Net increase in cash and cash equivalents	10,902,057	-2,159,020
Add: Balance of cash and cash equivalents as at the beginning of the period	10,607,711	15,934,713

VI. Balance of cash and cash equivalents as at the end of the period	21,509,768	13,775,693

Person in charge of the Company: Mr. Ma Chongxian Person in charge of accounting function: Mr. Sun Yuquan Person in charge of accounting department: Mr. Lyu Lingfei

Adjustments made to the financial statements as at the beginning of the year for the initial implementation of New Accounting Standards or interpretation of standards since 2023

Applicable Not applicable

The announcement is hereby given.

By Order of the Board

Air China Limited

Huang Bin Huen Ho Yin

Joint Company Secretaries

Beijing, the PRC, 26 October 2023

* Independent non-executive director of the Company

END

QRTFEMSDWEDSELS

TIDM	AIRC
Share Price	Loading...
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Date	27 Oct 2023
Time	07:00:05
Category	Results
ID	5252R

TIDM	AIRC
Share Price	Loading...
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Date	27 Oct 2023
Time	07:00:05
Category	Results
ID	5252R

t

t

Company Information

RNS Metadata

Third Quarterly Report of 2023

IMPORTANT NOTICE:

I. MAJOR FINANCIAL DATA

(1) Major accounting data and financial indicators

(2) Items and amounts of non-recurring profits and losses

(3) Changes of major accounting data and financial indicators and reasons for changes

II. INFORMATION OF SHAREHOLDERS

(1) Total number of holders of ordinary shares, the number of holders of preference shares with restored voting rights and the particulars of the top 10 shareholders

III. OTHER ALERTS

IV. QUARTERLY FINANCIAL STATEMENTS

(1) Type of audit opinion

CONSOLIDATED BALANCE SHEET

CONSOLIDATED INCOME STATEMENT

CONSOLIDATED CASH FLOW STATEMENT

Company Information

RNS Metadata

IMPORTANT NOTICE:

I. MAJOR FINANCIAL DATA

(1) Major accounting data and financial indicators

(2) Items and amounts of non-recurring profits and losses

(3) Changes of major accounting data and financial indicators and reasons for changes

II. INFORMATION OF SHAREHOLDERS

(1) Total number of holders of ordinary shares, the number of holders of preference shares with restored voting rights and the particulars of the top 10 shareholders

III. OTHER ALERTS

IV. QUARTERLY FINANCIAL STATEMENTS

(1) Type of audit opinion

CONSOLIDATED BALANCE SHEET

CONSOLIDATED INCOME STATEMENT

CONSOLIDATED CASH FLOW STATEMENT