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 2013

 

Commission File Number: 001-14550

 

China Eastern Airlines Corporation Limited

———————————————————————————————————

(Translation of Registrant’s name into English)

 

 

Board Secretariat’s Office

Kong Gang San Lu, Number 88

Shanghai, China 200335

———————————————————————————————————

(Address of principal executive offices)

 

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

 

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

 

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

 

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

 

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

 

 

SIGNATURES

 

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

 

	China Eastern Airlines Corporation Limited
	(Registrant)

 

Date	April 26, 2013		By	/s/ Wang Jian
				Name: Wang Jian
				Title: Joint Company Secretary

 

 

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

 

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

 

 

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

(Stock code: 00670)

 

FIRST QUARTERLY REPORT 2013

 

This announcement is made by the Company pursuant to the disclosure requirement under Rules 13.09 and 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 2013 were not audited, and were prepared in accordance with the PRC Accounting Regulations.

 

1.

IMPORTANT NOTICE

 

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

 

This quarterly report was prepared in accordance with the regulations as prescribed by the China Securities Regulatory Commission (the “CSRC”) in relation to disclosure of information in quarterly reports for listed companies, and is published simultaneously in Shanghai and Hong Kong. The financial statements of the Company for the first quarter of 2013 were not audited, and were prepared in accordance with the PRC Accounting Regulations.

 

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

 

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

 

 

This first quarterly report of the Company is unaudited.

 

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

 

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

 

2.

BASIC PARTICULARS OF THE COMPANY

 

2.1

Main accounting data and financial indicators

 

Currency: RMB

Increase/decrease as

As at the

at the end of the

end of the

reporting period

reporting

As at the end

compared with the

period

of last year

end of last year

(%)

Total assets (RMB’000)

128,617,887

120,962,479

6.33

Owners’ equity (or shareholders’ equity) (RMB’000)

23,343,003

23,376,346

–0.14

Net assets per share attributable to the shareholders of listed company (RMB per share)

2.070

2.073

–0.14

 

		From the beginning				Increase/decrease
		of the year to the end of				compared with the
		the reporting period				same period last year
						(%)
Net cash flows from operating activities (RMB’000)			1,797,174				–48.42
Net cash flows from operating activities per share (RMB per share)			0.1594				–48.42

 

 

From the

beginning of

Increase/decrease for

the year to the

the reporting period

Reporting

end of the

compared with the

period

reporting period

same period last year

(%)

Net profit attributable to shareholders of listed company (RMB’000)

–132,392

–132,392

–149.67

Basic earnings per share (RMB per share)

–0.01174

–0.01174

–149.75

Basic earnings per share after deducting non-recurring profit and loss (RMB per share)

–0.01408

–0.01408

–162.86

Diluted earnings per share (RMB per share)

–0.01174

–0.01174

–149.75

Weighted average return on net assets (%)

–0.568

–0.568

Decrease by 1.868 percentage points

Weighted average return on net assets after deducting non-recurring profit and loss (%)

–0.681

–0.681

Decrease by 1.911 percentage points

  

After deducting non-recurring profit and loss and relevant amounts:

 

		Unit: ’000
		Currency: RMB
Item		Amount
Gains or losses from disposal of non-current assets			–90
Non-operating incomes and expenses other than the above			29,506
Effect on income tax			–2,185
Effect on minority interests (net of tax)			–840
Total			26,391

 

 

2.2

The total number of the Company’s shareholders and the shareholdings of the 10 largest holders of shares not subject to selling moratorium as at the end of the reporting period

 

Unit: Shares

 

The total number of the Company’s shareholders as at the end of the reporting period

245,834

 

Shareholding of the 10 largest holders of circulating shares not subject to selling moratorium

 

		Number of
		circulating shares
		not subject to selling
		moratorium held at
Name of shareholders (in full)		the end of the period				Class
China Eastern Air Holding Company (“CEA Holding”)			4,831,375,000			RMB ordinary shares
HKSCC NOMINEES LIMITED (including CES Global Holdings (Hong Kong) Limited)			3,479,554,299			Overseas listed foreign shares
Shanghai Alliance Investment Limited (上海聯和投資有限公司)			427,085,429			RMB ordinary shares
China National Aviation Fuel Holding Company (中國航空油料集團公司)			421,052,632			RMB ordinary shares
Jin Jiang International Holdings Company Limited ( 錦江國際 (集團) 有限公司)			343,288,860			RMB ordinary shares
Aerospace Capital Holding Co., Ltd. (航天投資控股有限公司)			99,088,580			RMB ordinary shares
Sinotrans Air Transportation Development Co., Ltd. (中外運空運發展股有限公司)			83,157,894			RMB ordinary shares
Bank Of China Limited – Harvest Research Selective Equity Securities Investment Fund (中國銀行股有限公司—嘉實研究精選股票型證券投資基金)			27,747,727			RMB ordinary shares
Bank of China Group Investment Limited (中銀集團投資有限公司)			21,997,755			RMB ordinary shares
Shanghai Light Industry Co., Ltd For Foreign Economic & Technical Co-operation (上海輕工業對外經濟技術合作有限公司)			18,574,343			RMB ordinary shares

 

 

3.

IMPORTANT MATTERS

 

3.1

The details of and reasons for the substantial changes in main items of financial statements and financial indicators of the Company

 

ü Applicable   ¨   Not applicable

 

Item		Change				Reasons for change
		(%)
Monetary capital			111.4			Primarily due to the Company’s issuance of RMB4.8 billion corporate bonds on 18 March 2013.
Short-term borrowings			47.98			Primarily due to the increase in the Company’s short-term borrowings during the first quarter of 2013.
Notes payable			–80			Primarily due  to  the  decrease  in  commercial  acceptance bills of the Company’s subsidiaries  of RMB0.2 billion.
Bonds payable			191.81			Primarily due to the Company’s issuance of RMB4.8 billion corporate bonds on 18 March 2013.
Business taxes and surcharges			–31.8			Primarily due to the extension of the scope of the pilot programme for the transformation from business tax to value-added tax in PRC in July 2012. The Company’s subsidiaries, including China United Airlines Co., Ltd., China Eastern Airlines Jiangsu Co., Ltd. and China Eastern Airlines Wuhan Co., Ltd. began to enforce the policies on 1 September 2012, 1 October 2012 and 1 December 2012, respectively, which resulted in a decrease of RMB50 million in the Company’s business tax expense for the first quarter of 2013.
Finance expenses			–64.68			Primary due to the increase of RMB244 million in the Company’s exchange gain arising from the appreciation of Renminbi against the US dollar as compared to the same period last year.
Investment income			–92.03			Primary due to the  investment loss of RMB30 million incurred by Jetstar Hong Kong Limited, an associate of the Company.

 

 

Item		Change				Reasons for change
		(%)
Non-operating income			41.23			Primarily due to the increase in the unsettled incomes between the Company and other airlines as compared to the same period last year.
Net profit attributable to the Company			–149.67			Primary due to sluggish performance of the global economy in the first quarter of 2013, resulting in a decrease  in the number of business travelers, which in turn affected  the Company’s revenues from ticket sales. Geopolitical events also reduced the Company’s income from markets with higher profit margins. Moreover, preference passengers for railway over airline transportation becoming more common further affected the Company’s passenger revenues. As such, net profit attributable to the Company in the first quarter of 2013 recorded a slight loss.
Other cash received from investing activities			1,353.11			Primary due to the expiration of the long-term bank deposits of subsidiaries of the Company.
Amount paid in cash in relation to purchases of fixed assets, intangible assets and other long-term assets			72.54			Primary due to increase in advanced payments on acquisition of aircraft.
Cash paid for repayment of indebtedness			–68.98			Primary due to decrease in the Company’s repayment of short-term borrowings due during the reporting period as compared to last year.

 

3.2

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

 

ü   Applicable   ¨  Not applicable

 

(1)

Non-public issuance

The Board resolved to approve the non-public issuance of A shares and H shares of the Company to its controlling shareholder and the controlling shareholder’s wholly-owned subsidiaries at the 18th ordinary meeting of the sixth session of the Board held on 11 September 2012. On 9 November 2012, the first extraordinary general meeting of 2012 of the Company was convened, during which the relevant resolutions on such issuance was considered and approved. This non-public issuance shall help to satisfy the Company’s capital requirements for continuous and stable development, strengthen its financial position and enhance the Company’s core competitiveness and capabilities of risk resilience, thereby fostering the long-term healthy development of the Company. The Company obtained the approvals for this non-public issuance of H shares and A shares from CSRC on 1 February 2013 and 9 April 2013, respectively. On 17 April 2013, the Company completed the issuance and registration of the non-public issuance of A shares. Details of this non-public issuance are set out in the announcements published by the Company on the websites of the Shanghai Stock Exchange, the Stock Exchange and the Company and the newspapers designated by CSRC.

 

 

 

(2)

Continuing connected transactions – Financial Services

In order to establish a systematic capital risk prevention mechanism and further ensure safety of the Company’s financial deposit in the Eastern Air Group Finance Company Limited (“Eastern Air Finance Company”), on 16 January 2013, the resolution on the entering into supplemental agreement to the financial services framework agreement with Eastern Air Finance Company was considered and approved by the 21st ordinary meeting of the sixth session of the Board. It was agreed that the Company shall enter into a supplemental agreement to the financial services agreement with Eastern Air Finance Company to further regulate the balances of the Company’s deposits and loans with Eastern Air Finance Company, a related party of the Company, on a pre-condition that the agreed maximum daily balance of each of the deposits and the loans under the financial services framework agreement remains unchanged. Major terms of the supplemental agreement are as follows: the maximum balance of the Company and its subsidiaries’ deposits in the Eastern Air Finance Company shall not be more than the maximum outstanding balance of loans (including other financial crediting services); the daily balance of the Company and its subsidiaries’s deposits in Eastern Air Finance Company in each financial year shall not be more than the daily outstanding balance of loans (including other financial crediting services) in that particular financial year. For details, please see the related announcements of the Company published on the websites of the Shanghai Stock Exchange, the Stock Exchange and the Company and the newspapers designated by CSRC.

 

Meanwhile, CEA Holding, the controlling shareholder the Company, further strengthened the supervision over Eastern Air Finance Company to ensure the safety of the Company’s financial deposit in Eastern Air Finance Company.

 

3.3

The status of implementation of the matters undertaken by the Company, shareholders and the ultimate controller

 

ü   Applicable   £   Not applicable

 

Whether

the undertaking

Is there any

has been strictly

implementation

implemented in

Background of

Type of

Undertaking

Time and term of

period

a timely manner

undertaking

undertaking

party

Content of undertaking

undertaking

(Yes/No)

(Yes/No)

Undertaking in relation to material asset restructuring

To resolve business competition

CEA Holding

Pursuant to the “Report relating to share exchange and absorption of Shanghai Airlines Co., Ltd (draft)” published by the Company on 11 August 2009, CEA Holding undertook that: within 3 years after completion of the absorption, it shall duly resolve the problem of business competition between CEA Holding and the Company by means of entrusting the competing business of CEA Holding to the Company, injecting or selling the competing business of CEA Holding to the Company, or CEA Holding acquiring the competing business from the Company. The specific resolutions are subject to the specific conditions at the time of the resolutions and the characteristics of different ancillary operation segments.

Time of undertaking: 11 August 2009; term of undertaking: from 29 December 2010 to 29 December 2013

Yes

Yes

 

 

Whether

the undertaking

Is there any

has been strictly

implementation

implemented in

Background of

Type of

Undertaking

Time and term of

period

a timely manner

undertaking

undertaking

party

Content of undertaking

undertaking

(Yes/No)

(Yes/No)

Undertaking in relation to refinancing

To resolve defects in land and other property ownership

CEA Holding

Due to historical problems, some of the land and property injected by CEA Holding into the Company had not yet been transferred to the name of the Company. In this regard, CEA Holding undertook that it shall, on a best-effort basis, enable the Company to obtain the relevant land use rights certificates and property ownership certificates in relation to its capital contribution to the Company, and complete relevant legal procedures in relation to the transfer of property rights; and CEA Holding shall bear all obligations in relation to the losses caused to the Company as a result of the failure of CEA Holding in completing the relevant procedures for transferring the relevant property rights in a timely manner, and shall indemnify all the losses suffered by the Company in this regard.

Time of undertaking: 2001; effective for long-term

No

Yes

 

3.4

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

 

¨

Applicable    ü    Not applicable

 

3.5

Implementation of cash dividend policy during the reporting period

 

PricewaterhouseCoopers Zhong Tian Certified Public Accountants Limited Company has audited the Company’s financial reports for 2012, and confirmed the Company’s net profit for 2012 was RMB2,987 million, and the total accumulated losses of the Company as at 31 December 2012 amounted to RMB1,516 million.

 

According to the requirements of the Company Law and the articles of association of the Company, the Company shall make good its losses incurred in previous years with its profit for the year before any profit distribution to the shareholders. Though the Company has remained relatively profitable in recent years, the losses in previous years were not fully covered. As such, the Company will not distribute profit for 2012 or implement capitalization of the common reserve fund. The above proposal will be submitted to the 2012 annual general meeting of the Company for consideration.

 

By order of the Board

中國東方航空股 有限公司

CHINA EASTERN AIRLINES CORPORATION LIMITED

Liu Shaoyong

Chairman

 

 

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

 

Liu Shaoyong	(Chairman)
Ma Xulun	(Vice Chairman, President)
Xu Zhao	(Director)
Gu Jiadan	(Director)
Li Yangmin	(Director, Vice President)
Tang Bing	(Director, Vice President)
Luo Zhuping	(Director)
Sandy Ke-Yaw Liu	(Independent non-executive Director)
Wu Xiaogen	(Independent non-executive Director)
Ji Weidong	(Independent non-executive Director)
Shao Ruiqing	(Independent non-executive Director)

 

Shanghai, the People’s Republic of China

26 April 2013

 

 

4.

APPENDICES

 

4.1

Consolidated Balance Sheet

31 March 2013

Prepared by: China Eastern Airlines Corporation Limited

Amounts expressed in RMB’000

Unaudited

 

		Balance at
		the end of				Balance at the
		the reporting				beginning of
Item		period				the year
Current assets:
Monetary capital			8,958,934				4,237,947
Derivative financial assets			42,078				18,074
Notes receivable			–				6,000
Trade receivables			3,038,367				2,956,181
Prepayments			882,593				823,681
Interest receivable			–				6,309
Dividends receivable			58,550				59,186
Other receivables			1,356,218				1,559,338
Inventory			2,173,041				2,087,978
Non-current assets due within one year			–				–
Other current assets			1,071,461				920,135
Total current assets			17,581,242				12,674,829

 

 

4.1

Consolidated Balance Sheet (Cont’d)

31 March 2013

Prepared by: China Eastern Airlines Corporation Limited

Amounts expressed in RMB’000

Unaudited

 

		Balance at
		the end of				Balance at the
		the reporting				beginning of
Item		period				the year
Non-current assets:
Financial assets available for sale			1,939				1,955
Held-to-maturity investments			–				–
Long-term receivables			–				–
Long-term equity investment			1,745,919				1,484,366
Properties held for investment			–				–
Fixed asset			81,612,596				80,481,809
Construction in progress			15,220,313				13,878,942
Construction materials			–				–
Disposal of fixed assets			–				–
Biological assets for production			–				–
Oil and gas assets			–				–
Intangible assets			1,964,757				1,961,250
Development expenses			–				–
Goodwill			8,509,030				8,509,030
Long-term deferred expenses			1,096,133				1,150,712
Deferred income tax assets			12,043				12,043
Other non-current assets			873,915				807,543
Total non-current assets			111,036,645				108,287,650
Total assets			128,617,887				120,962,479

 

 

4.1

Consolidated Balance Sheet (Cont’d)

31 March 2013

Prepared by: China Eastern Airlines Corporation Limited

Amounts expressed in RMB’000

Unaudited

 

		Balance at
		the end of				Balance at the
		the reporting				beginning of
Item		period				the year
Current liabilities:
Short-term borrowings			13,140,630				8,880,244
Derivative financial liabilities			255,098				340,149
Notes payable			50,000				250,000
Trade payables			11,492,197				10,848,016
Account collected in advance			3,242,573				3,559,027
Staff remuneration payable			2,172,068				2,601,875
Tax payable			1,667,052				1,756,442
Interest payable			284,556				237,421
Other payables			2,522,256				2,954,190
Non-current liabilities due within one year			13,436,787				13,414,181
Other current liabilities			4,000,000				4,000,000
Total current liabilities			52,263,217				48,841,545

 

 

4.1

Consolidated Balance Sheet (Cont’d)

31 March 2013

Prepared by: China Eastern Airlines Corporation Limited

Amounts expressed in RMB’000

Unaudited

 

		Balance at
		the end of				Balance at the
		the reporting				beginning of
Item		period				the year
Non-current liabilities:
Long-term borrowings			20,594,545				20,596,163
Bonds payable			7,295,200				2,500,000
Long-term payables			22,017,279				22,507,716
Special items payable			113,454				116,558
Expected liabilities			–				–
Deferred income tax liabilities			29,326				29,326
Other non-current liabilities			1,302,178				1,328,529
Total non-current liabilities			51,351,982				47,078,292
Total liabilities			103,615,199				95,919,837
Owners’ equity (or shareholders’ equity):
Paid-up capital (or share capital)			11,276,539				11,276,539
Capital reserves			15,234,487				15,135,450
Surplus reserves			–				–
Undistributed profits			–3,168,023				–3,035,643
Exchange difference in foreign currency statements			–				–
Total equity attributable to equity holders of the Company			23,343,003				23,376,346
Minority interests			1,659,685				1,666,296
Total owners’ equity			25,002,688				25,042,642
Total liabilities and owners’ equity			128,617,887				120,962,479

 

Legal representative of the Company: Liu Shaoyong

Officer-in-charge of accounting: Ma Xulun

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

 

 

4.1

Balance Sheet of the Company

31 March 2013

Prepared by: China Eastern Airlines Corporation Limited

Amounts expressed in RMB’000

Unaudited

 

		Balance at
		the end of				Balance at the
		the reporting				beginning of
Item		period				the year
Current assets:
Monetary capital			7,208,784				726,965
Derivative financial assets			42,078				18,074
Notes receivable			–				–
Trade receivables			3,619,817				3,601,021
Prepayments			301,330				414,702
Interest receivable			–				–
Dividends receivable			59,186				138,409
Other receivables			8,374,732				5,270,769
Inventory			1,863,068				1,794,447
Non-current assets due within one year			–				–
Other current assets			1,084,373				1,125,151
Total current assets			22,553,368				13,089,538
Non-current assets:
Financial assets available for sale			–				–
Held-to-maturity investments			–				–
Long-term receivables			–				–
Long-term equity investment			11,015,661				12,342,036
Properties held for investment			–				–
Fixed assets			53,237,087				54,469,625
Construction in progress			13,662,329				12,231,183
Construction materials			–				–
Disposal of fixed assets			–				–
Biological assets for production			–				–
Oil and gas assets			–				–
Intangible assets			950,699				943,257
Development expenses			–				–
Goodwill			8,509,030				8,509,030
Long-term deferred expenses			785,879				825,625
Deferred income tax assets			–				–
Other non-current assets			266,069				251,411
Total non-current assets			88,426,754				89,572,167
Total assets			110,980,122				102,661,705

 

 

4.1

Balance Sheet of the Company (Cont’d)

31 March 2013

Prepared by: China Eastern Airlines Corporation Limited

Amounts expressed in RMB’000

Unaudited

 

		Balance at
		the end of				Balance at the
		the reporting				beginning of
Item		period				the year
Current liabilities:
Short-term borrowings			12,450,580				7,555,262
Derivative financial liabilities			255,098				340,149
Notes payable			–				–
Trade payables			11,425,425				11,393,136
Account collected in advance			2,633,611				2,955,551
Staff remuneration payable			1,386,295				1,604,161
Tax payable			826,317				919,523
Interest payable			230,869				161,649
Dividends payable			–				–
Other payables			5,592,211				4,167,065
Non-current liabilities due within one year			11,356,947				11,030,817
Other current liabilities			4,000,000				4,000,000
Total current liabilities			50,157,353				44,127,313
Non-current liabilities:
Long-term borrowings			14,160,011				15,087,334
Bonds payable			4,795,200				–
Long-term payables			16,088,088				17,273,947
Special items payable			91,646				91,821
Expected liabilities			–				–
Deferred income tax liabilities			–				–
Other non-current liabilities			792,337				769,696
Total non-current liabilities			35,927,282				33,222,798
Total liabilities			86,084,635				77,350,111

 

 

4.1

Balance Sheet of the Company (Cont’d)

31 March 2013

Prepared by: China Eastern Airlines Corporation Limited

Amounts expressed in RMB’000

Unaudited

 

		Balance at
		the end of				Balance at the
		the reporting				beginning of
Item		period				the year
Owners’ equity (or shareholders’ equity):
Paid-up capital (or share capital)			11,276,539				11,276,539
Capital reserves			15,652,206				15,551,235
Less: Treasury shares			–				–
Special reserves			–				–
Surplus reserves			–				–
Provision for ordinary risks			–				–
Undistributed profits			–2,033,258				–1,516,180
Total owners’ equity (or shareholders’ equity)			24,895,487				25,311,594
Total liabilities and owners’ equity (or shareholders’ equity)			110,980,122				102,661,705

 

Legal representative of the Company: Liu Shaoyong

Officer-in-charge of accounting: Ma Xulun

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

  

 

4.2

Consolidated Income Statement

January to March 2013

Prepared by: China Eastern Airlines Corporation Limited

Amounts expressed in RMB’000

Unaudited

 

								Amount for the
				Amount for				corresponding
				the reporting				period of
		Item		period				last year
1.		Total revenue			20,659,524				19,324,116
		Of which: Revenue			20,659,524				19,324,116
		Interest income			–				–
		Premiums earned			–				–
		Handling charges and commission income			–				–
2.		Total operating costs			21,398,555				19,566,510
		Of which: Operating costs			19,190,486				17,247,303
		Interest expenses			–				–
		Handling charges and commission expenses			–				–
		Payments on surrenders			–				–
		Net compensation expenses			–				–
		Net provision for insurance contract			–				–
		Insurance policy dividend expenses			–				–
		Reinsurance expenses			–				–
		Business taxes and surcharges			106,586				156,282
		Selling expenses			1,355,886				1,209,900
		General and administrative expenses			605,760				557,176
		Finance expenses			139,834				395,881
		Assets impairment loss			3				–32
		Add: Gains arising from changes in fair value (loss indicated by “–”)			10,664				9,128
		Investment gains (loss indicated by “–”)			2,992				37,557
		Of which: Investment gains on associated companies and joint ventures			–				–
		Exchange gains (loss indicated by “–”)			–				–
3.		Operating profit (loss indicated by “–”)			–725,375				–195,709
		Add: Non-operating income			585,855				414,834
		Less: Non-operating expenses			3,138				9,523
		Of which: Loss on disposal of non-current assets			–				–

 

 

4.2

Consolidated Income Statement (Cont’d)

January to March 2013

Prepared by: China Eastern Airlines Corporation Limited

Amounts expressed in RMB’000

Unaudited

 

								Amount for the
				Amount for				corresponding
				the reporting				period of
		Item		period				last year
4.		Total profits (total losses indicated by “–”)			–142,658				209,602
		Less: Income tax expenses			25,299				29,984
5.		Net profit (net loss indicated by “–”)			–167,957				179,618
		Net profit attributable to equity holders of the Company			–132,392				266,527
		Minority interests			–35,565				–86,909
6.		Earnings per share:
		(1)       Basic earnings per share			–0.01174				0.0236
		(2)       Diluted earnings per share			–0.01174				0.0236

 

Legal representative of the Company: Liu Shaoyong

Officer-in-charge of accounting: Ma Xulun

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

 

 

4.2

Income Statement of the Company

January to March 2013

Prepared by: China Eastern Airlines Corporation Limited

Amounts expressed in RMB’000

Unaudited

 

								Amount for the
				Amount for				corresponding
				the reporting				period of
		Item		period				last year
1.		Revenue			11,006,168				10,510,593
		Less: Operating costs			10,359,360				9,128,689
		Business taxes and surcharges			11,859				14,966
		Selling expenses			858,826				818,477
		General and administrative expenses			317,824				304,995
		Finance expenses			100,336				314,502
		Assets impairment loss			–				–
		Add: Gains arising from changes in fair value (loss indicated by “–”)			10,664				9,128
		Investment gains (loss indicated by “–”)			–399,627				28,987
		Of which: Investment gains on associated companies and joint ventures			–				–
2.		Operating profit (loss indicated by “–”)			–1,031,000				–32,921
		Add: Non–operating income			515,831				342,494
		Less: Non–operating expenses			1,915				2,115
		Of which: Loss on disposal of non–current assets			–				–
3.		Total profits (total losses indicated by “–”)			–517,084				307,458
		Less: Income tax expenses			–				–
4.		Net profit (net loss indicated by “–”)			–517,084				307,458

 

Legal representative of the Company: Liu Shaoyong

Officer-in-charge of accounting: Ma Xulun

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

 

 

4.3

Consolidated Cash Flow Statement

January to March 2013

Prepared by: China Eastern Airlines Corporation Limited

Amounts expressed in RMB’000

Unaudited

 

								Amount for the
				Amount for				corresponding
				the reporting				period of
		Item		period				last year
1.		Cash flow from operating activities:
		Cash received from sales of goods and provision of labour services			20,500,138				17,583,504
		Other cash received relating to operating activities			1,094,639				1,006,459
		Sub-total of operating cash inflow			21,594,777				18,589,963
		Cash paid for purchase of goods and receiving of labour services			14,044,677				9,636,206
		Cash paid to and for employees			3,607,083				3,458,997
		Taxes paid			502,459				626,061
		Other cash paid for operating activities			1,643,384				1,384,126
		Sub-total of cash outflow from operating activities			19,797,603				15,105,390
		Net cash flows from operating activities			1,797,174				3,484,573

 

 

4.3

Consolidated Cash Flow Statement (Cont’d)

January to March 2013 

Prepared by: China Eastern Airlines Corporation Limited

Amounts expressed in RMB’000

Unaudited

 

								Amount for the
				Amount for				corresponding
				the reporting				period of
		Item		period				last year
2.		Cash flow from investing activities:
		Cash received from disposal of investment			–				–
		Investment income in cash			636				7,083
		Net cash recovered from disposals of fixed assets, intangible assets and other long-term assets			11,744				6,538
		Other cash received from investing activities			990,675				68,176
		Sub-total of cash inflow from investing activities			1,003,055				81,797
		Amount paid in cash in relation to purchases of fixed assets, intangible assets and other long- term assets			4,710,974				2,730,406
		Investments paid in cash			–				–
		Other cash paid for investing activities			–				660,000
		Sub-total of cash outflow from investing activities			4,710,974				3,390,406
		Net cash flow from investing activities			–3,707,919				–3,308,609

 

 

4.3

Consolidated Cash Flow Statement (Cont’d)

January to March 2013 

Prepared by: China Eastern Airlines Corporation Limited

Amounts expressed in RMB’000

Unaudited

 

								Amount for the
				Amount for				corresponding
				the reporting				period of
		Item		period				last year
3.		Cash flow from fund raising activities:
		Proceeds received in cash from investments			50,000				–
		Cash received from borrowings			7,384,848				11,466,663
		Proceeds received in cash from bonds issuance			4,795,200				–
		Other proceeds in cash from fund raising activities			–				1,400
		Sub-total of cash inflow from fund raising activities			12,230,048				11,468,063
		Cash paid for repayment of indebtedness			3,034,860				9,783,517
		Cash payments for distribution of dividends, profits or payments of interest expense			448,144				504,732
		Other cash paid for fund raising activities			1,154,764				1,084,204
		Sub-total of cash outflow from fund raising activities			4,637,768				11,372,453
		Net cash flow from fund raising activities			7,592,280				95,610
4.		Effect of changes in exchange rate on cash and cash equivalents			–10,548				–4,016
5.		Net increase in cash and cash equivalents			5,670,987				267,558
		Add: Balance of cash and cash equivalents at the beginning of the period			2,511,696				3,860,973
6.		Balance of cash and cash equivalents at the end of the period			8,182,683				4,128,531

 

Legal representative of the Company: Liu Shaoyong

Officer-in-charge of accounting: Ma Xulun

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

 

 

4.3

Cash Flow Statement of the Company

January to March 2013 

Prepared by: China Eastern Airlines Corporation Limited

Amounts expressed in RMB’000

Unaudited

 

								Amount for the
				Amount for				corresponding
				the reporting				period of
		Item		period				last year
1.		Cash flow from operating activities:
		Cash received from sales of goods and provision of labour services			13,453,386				10,300,423
		Other cash received relating to operating activities			883,778				937,643
		Sub-total of operating cash inflow			14,337,164				11,238,066
		Cash paid for purchase of goods and receiving of labour services			9,324,501				6,409,063
		Cash paid to and for employees			2,024,066				1,990,286
		Taxes paid			222,429				322,244
		Other cash paid for operating activities			1,242,243				1,243,285
		Sub-total of cash outflow from operating activities			12,813,239				9,964,878
		Net cash flows from operating activities			1,523,925				1,273,188
2.		Cash flow from investing activities:
		Cash received from disposal of investment			950,520				–
		Investment income in cash			89,463				13,047
		Net cash recovered from disposals of fixed assets, intangible assets and other long-term assets			440				181
		Other cash received from investing activities			12,075				16,246
		Sub-total of cash inflow from investing activities			1,052,498				29,474
		Amount paid in cash in relation to purchases of fixed assets, intangible assets and other long- term assets			4,107,122				1,890,150
		Investments paid in cash			–				–
		Other cash paid for investing activities			–				–
		Sub-total of cash outflow from investing activities			4,107,122				1,890,150
		Net cash flow from investing activities			–3,054,624				–1,860,676

 

 

4.3

Cash Flow Statement of the Company (Cont’d)

January to March 2013 

Prepared by: China Eastern Airlines Corporation Limited

Amounts expressed in RMB’000

Unaudited

 

								Amount for the
				Amount for				corresponding
				the reporting				period of
		Item		period				last year
3.		Cash flow from fund raising activities:
		Proceeds received in cash from investments			–				–
		Cash received from borrowings			6,878,918				10,484,103
		Proceeds received in cash from bonds issuance			4,795,200				–
		Other proceeds in cash from fund raising activities			–				–
		Sub-total of cash inflow from fund raising activities			11,674,118				10,484,103
		Cash paid for repayment of indebtedness			2,416,314				8,499,998
		Cash payments for distribution of dividends, profits or payments of interest expense			218,097				298,421
		Other cash paid for fund raising activities			1,017,167				972,417
		Sub-total of cash outflow from fund raising activities			3,651,578				9,770,836
		Net cash flow from fund raising activities			8,022,540				713,267
4.		Effect of changes in exchange rate on cash and cash equivalents			–10,022				–3,884
5.		Net increase in cash and cash equivalents			6,481,819				121,895
		Add: Balance of cash and cash equivalents at the beginning of the period			617,422				852,012
6.		Balance of cash and cash equivalents at the end of the period			7,099,241				973,907

 

Legal representative of the Company: Liu Shaoyong

Officer-in-charge of accounting: Ma Xulun

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