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 2021
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, 2021 | By | /s/ Wang Jian | |||||||
Name: | Wang Jian | |||||||||
Title: | Company Secretary |
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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.
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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.
2021 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 2021 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 Rules Governing the Listing of Stocks on the Shanghai Stock Exchange and relevant 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 2021 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.
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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 Zhou Qimin, 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.
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2. | BASIC INFORMATION OF THE COMPANY |
2.1 | Main financial data |
Unit: million Currency: RMB |
| |||||||||||
Item | As at the end of the reporting period | As at the end of last year | Increase/decrease as at the end of the reporting period compared with the end of last year (%) | |||||||||
Total assets | 292,115 | 282,408 | 3.44 | |||||||||
Net assets attributable to shareholders of the listed company | 49,918 | 54,007 | -7.57 | |||||||||
Item | From the beginning of the year to the end of the reporting period | From the beginning of last year to the end of the reporting period last year | Increase/ decrease compared with the same period last year (%) | |||||||||
Net cash flows from operating activities | 313 | -6,126 | N/A | |||||||||
Item | From the beginning of the year to the end of the reporting period | From the beginning of last year to the end of the reporting period last year | Increase/ decrease compared with the same period last year (%) | |||||||||
Revenue | 13,395 | 15,454 | -13.32 | |||||||||
Net profit attributable to shareholders of the listed company | -3,805 | -3,933 | N/A | |||||||||
Net profit attributable to shareholders of the listed company after deducting non-recurring profit and loss | -4,148 | -4,046 | N/A | |||||||||
Weighted average return on net assets (%) | -7.33 | -6.08 | Decreased by 1.25 pt | |||||||||
Basic earnings per share (RMB/share) | -0.2323 | -0.2401 | N/A | |||||||||
Diluted earnings per share (RMB/share) | -0.2323 | -0.2401 | N/A |
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Non-recurring profit and loss and relevant amounts
Unit: million Currency: RMB |
| |||
Item | Amount for the period | |||
Net gains from disposal of non-current assets | -2 | |||
Changes in fair value arising from financial assets/ liabilities held for trading | 12 | |||
Non-operating net incomes and expenses | 29 | |||
Net incomes and expenses other than the above | 398 | |||
Effect on income tax | -92 | |||
Effect on minority interests (after tax) | -2 | |||
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Total | 343 | |||
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2.2 | The total number of 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 | 195,107 |
Shareholding of the 10 largest shareholders
Pledged or locked-up | ||||||||||||||||||||||
Name of shareholder (in full) | Shareholdings as at the end of the period | Proportion (%) | Number of shares with trading moratorium held | Status of shares | Number of shares | Nature of shareholders | ||||||||||||||||
China Eastern Air Holding Company Limited (中國東方航空集團有限公司) | 5,072,922,927 | 30.97 | 0 | None | 0 | State-owned legal person | ||||||||||||||||
HKSCC Nominees Limited | 4,701,425,905 | 28.70 | 517,677,777 | Unknown | Unknown | Overseas legal person | ||||||||||||||||
Shanghai Jidaohang Enterprise Management Company Limited (上海吉道航企業管理有限公司) | 589,041,096 | 3.60 | 589,041,096 | None | 0 | Domestic non-state- owned legal person | ||||||||||||||||
China National Aviation Fuel Holding Company Limited (中國航空油料集團有限公司) | 502,767,895 | 3.07 | 0 | None | 0 | State-owned legal person | ||||||||||||||||
Delta Air Lines, Inc. | 465,910,000 | 2.84 | 0 | None | 0 | 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 | 2.84 | 0 | Pledged | 285,838,509 | Domestic non-state- owned legal person | ||||||||||||||||
CES Finance Holding Co., Ltd. (東航金控有限責任公司) | 457,317,073 | 2.79 | 0 | None | 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 | 2.62 | 0 | None | 0 | State-owned legal person | ||||||||||||||||
Shanghai Juneyao (Group) Co., Ltd. (上海均瑤 (集團) 有限公司) | 311,831,909 | 1.90 | 311,831,909 | Pledged | 311,831,909 | Domestic non-state- owned legal person | ||||||||||||||||
China Structural Reform Fund Corporation Limited (中國國有企業結構調整基金股份有限公司) | 273,972,602 | 1.67 | 273,972,602 | None | 0 | State-owned legal person |
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Shareholding of the 10 largest holders of shares without trading moratorium
Name of shareholder | Number of listed shares without trading moratorium held | Class and number of shares | ||||||||
Class | Number | |||||||||
China Eastern Air Holding Company Limited | 5,072,922,927 | RMB ordinary shares | 5,072,922,927 | |||||||
HKSCC Nominees Limited | 4,183,748,128 | Overseas listed foreign shares | 4,183,748,128 | |||||||
China National Aviation Fuel Holding Company Limited | 502,767,895 | RMB ordinary shares | 502,767,895 | |||||||
Delta Air Lines, Inc. | 465,910,000 | Overseas listed foreign shares | 465,910,000 | |||||||
Shanghai Licheng Information Technology Consulting Co., Ltd. | 465,838,509 | RMB ordinary shares | 465,838,509 | |||||||
CES Finance Holding Co., Ltd. | 457,317,073 | RMB ordinary shares | 457,317,073 | |||||||
China Securities Finance Corporation Limited | 429,673,382 | RMB ordinary shares | 429,673,382 | |||||||
China COSCO Shipping Corporation Limited | 232,919,254 | RMB ordinary shares | 232,919,254 | |||||||
Hong Kong Securities Clearing Company Limited | 158,923,224 | RMB ordinary shares | 158,923,224 | |||||||
Central Huijin Asset Management Ltd. | 70,984,100 | RMB ordinary shares | 70,984,100 |
Description of connected relationship or activities in concert among the above shareholders | Among the 4,701,425,905 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 directly or indirectly holds 8,156,480,000 shares of the Company, representing 49.80% of the total share capital of the Company.
Among the 4,701,425,905 shares held by HKSCC Nominees Limited, 546,769,777 shares are held by Shanghai Juneyao Airline Hong Kong Limited (“Juneyao Hong Kong”) in the capacity of beneficial owner. Shanghai Juneyao (Group) Co., Ltd. (“Juneyao Group”) is the controlling shareholder of Juneyao Airlines Co., Ltd. (“Juneyao Airlines”), and Juneyao Airlines owns 100% equity interest in Shanghai Jidaohang Enterprise Management Company Limited and Juneyao Hong Kong. Thus, Juneyao Group directly or indirectly holds 1,679,042,919 shares of the Company, representing 10.25% of the total share capital of the Company.
The Company is not aware of any other connected relationship or activities in concert among the 10 largest holders of shares without trading moratorium. |
As at the end of the reporting period, CES Global has pledged in aggregate 1,450,000,000 H shares of the Company; and Juneyao Hong Kong has pledged in aggregate 232,000,000 H shares of the Company.
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2.3 | The total number of preferred shareholders and the shareholding of the 10 largest preferred shareholders and the shareholding of the 10 largest holders of preferred shares without trading moratorium as at the end of the reporting period |
Not applicable
3. | IMPORTANT MATTERS |
3.1 | Details of and reasons for the substantial changes in main items of financial statements and financial indicators of the Company |
Since the beginning of 2020, the worldwide outbreak of the novel coronavirus (COVID-19) pandemic (“COVID-19”) caused a significant impact on the global aviation industry. As the situation of COVID-19 prevention and control in China continued to steadily improve, passengers’ willingness to travel has increased and the demand for civil aviation passenger transportation in China has shown a trend of recovery. However, in the first quarter of 2021, the sporadic COVID-19 cases in certain areas of China posed certain adverse impact on the recovery of air travel demand. The global situation of COVID-19 is still severe, and China is still facing great pressure from prevention of imported cases of COVID-19. Passenger traffic volume of international routes has remained at a low level.
Under a complex operating environment, the Company closely followed the changes in market demand, timely adjusted its operating strategies, implemented strict cost control measures, and strived to overcome the adverse impact brought by COVID-19. In the first quarter of 2021, the Company’s total traffic volume amounted to 2,996 million tonne-kilometres, representing a year-on-year increase of 14.86%; number of passengers carried amounted to 17,635,500, representing a year-on-year increase of 28.56%; revenue amounted to RMB13,395 million; net profit attributable to shareholders of the parent company amounted to RMB-3,805 million, representing a reduction of loss in the amount of RMB128 million compared to the corresponding period of last year; net cash and cash equivalents at the end of the period amounted to RMB15,693 million; and the production and operation and cash flows remained stable.
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Details of and reasons for the substantial changes in main items of financial statements
Item | Change compared to the end of last year (%) | Reason for the change | ||||
Monetary capital | 104.95 | Primarily due to the fact that the Company conducted research and made judgement on the future operation and reserved capital for the subsequent payments based on the external capital market situation. | ||||
Hedge instruments | -70.99 | Primarily due to the changes in fair value of hedge contracts. | ||||
Trade receivables | 53.91 | Primarily due to the increase in unsettled balance of air ticket payments at the end of the reporting period. | ||||
Intangible assets | 40.53 | Primarily due to the increase in land use right assets of a subsidiary of the Company. | ||||
Staff remuneration payable | -33.05 | Primarily due to payment of staff remuneration and contribution to social insurance during the reporting period. | ||||
Other current liabilities | -54.27 | Primarily due to the fact that the Company adjusted the financing structure according to the situation of the financial market and reduced the issuance of super short-term debentures. | ||||
Long-term borrowings | 132.82 | Primarily due to the fact that the Company adjusted the financing structure according to the situation of the financial market and increased long-term borrowings. | ||||
Bonds payable | 50.86 | Primarily due to the fact that the Company issued corporate bonds in the amount of RMB9 billion according to the situation of the financial market during the reporting period. | ||||
Undistributed profits | -74.84 | Primarily due to the loss for the period as affected by COVID-19. |
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Item | Change compared to the end of last year (%) | Reason for the change | ||||
Finance costs | -42.61 | Primarily due to the foreign exchange gains for the period as compared to the foreign exchange loss for the corresponding period of last year. | ||||
Gains arising from changes in fair value | N/A | Primarily due to the fluctuations in prices of stocks held by the Company. | ||||
Investment gains | N/A | Primarily due to the gains from disposal of subsidiaries of the Company. | ||||
Non-operating income | -36.07 | Primarily due to the decrease in tax and fee collections for passenger transportation business beyond the settlement period. | ||||
Net cash flows from operating activities | N/A | Primarily due to the increase in ticket sales compared to the corresponding period of last year. | ||||
Net cash flows from investing activities | 65.07 | Primarily due to the increase in aircraft prepayments compared to the corresponding period of last year. |
3.2 | Analysis of the progress of important matters and their effects and proposed solutions |
(1) | On 2 February 2021, at the ninth ordinary meeting of the ninth session of the Board, the resolution on the non-public issuance of A shares of the Company was considered and approved, pursuant to which the Company proposed to non-publicly issue A shares to CEA Holding, its controlling shareholder, with proceeds of not more than RMB10,828 million. On 22 March 2021, the Company received the approval from CEA Holding for the non-public issuance of A shares, pursuant to which CEA Holding agreed in principle to the proposal of the non-public issuance of A shares. On 29 March 2021, at the 2021 first extraordinary general meeting, 2021 first class meeting of holders of A shares and 2021 first class meeting of holders of H shares of the Company, the relevant resolution was considered and approved. The proposal for the non-public issuance of A shares is still subject to the approval of the China Securities Regulatory Commission, the East China Regional Administration of the Civil Aviation Administration of China and other competent authorities. For details, please refer to the announcements of the Company published on the website of the Shanghai Stock Exchange and the website of the Hong Kong Stock Exchange on 2 February, 22 March and 29 March 2021. |
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(2) | On 12 March 2021, the Company publicly issued the 2021 corporate bonds (first tranche) to professional investors, with a total issuance amount of RMB9 billion. For details, please refer to the announcements of the Company published on the website of the Shanghai Stock Exchange and the website of the Hong Kong Stock Exchange on 12 March 2021. |
3.3 | Overdue commitments that have not yet been fulfilled during the reporting period |
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 |
COVID-19 has caused a significant impact on the global aviation industry. There remains great complexity and uncertainty as to the global situation of COVID-19. It is expected that the operating results of the Company in the first half of 2021 may still be adversely affected by COVID-19. Investors are reminded of the risks thereof.
The above description of the future situation of the Company is based on preliminary judgment under the current situation and involves certain uncertainties. Investors are reminded of the risks thereof. Shareholders and potential investors of the Company are advised to exercise caution when dealing in the securities of the Company.
By order of the Board |
CHINA EASTERN AIRLINES CORPORATION LIMITED |
Liu Shaoyong |
Chairman |
Shanghai, the People’s Republic of China |
29 April 2021 |
As at the date of this announcement, the directors of the Company include Liu Shaoyong (Chairman), Li Yangmin (Vice Chairman, President), Tang Bing (Director), Shao Ruiqing (Independent non-executive Director), Cai Hongping (Independent non-executive Director), Dong Xuebo (Independent non-executive Director) and Jiang Jiang (Employee Representative Director).
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4. | APPENDICES |
4.1 | Financial Statements |
China Eastern Airlines Corporation Limited
Consolidated and Company’s Balance Sheet as at 31 March 2021 (unaudited)
RMB million | ||||||||||||||||
Assets | 31 March 2021 Consolidated | 31 December 2020 Consolidated | 31 March 2021 Company | 31 December 2020 Company | ||||||||||||
Current assets | ||||||||||||||||
Monetary capital | 15,705 | 7,663 | 15,605 | 7,572 | ||||||||||||
Held-for-trading financial assets | 107 | 95 | 107 | 95 | ||||||||||||
Hedge instruments | 105 | 362 | 105 | 362 | ||||||||||||
Notes receivables | — | — | — | — | ||||||||||||
Trade receivables | 1,730 | 1,124 | 1,336 | 846 | ||||||||||||
Prepayments | 89 | 123 | 24 | 67 | ||||||||||||
Other receivables | 2,687 | 2,476 | 30,052 | 28,659 | ||||||||||||
Inventory | 2,096 | 2,054 | 38 | 24 | ||||||||||||
Held-for-sale assets | 2 | 2 | — | — | ||||||||||||
Non-current assets due within one year | 7 | 11 | — | — | ||||||||||||
Other current assets | 8,669 | 8,588 | 7,633 | 7,625 | ||||||||||||
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Total current assets | 31,197 | 22,498 | 54,900 | 45,250 | ||||||||||||
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Non-current assets | ||||||||||||||||
Long-term equity investment | 2,358 | 2,387 | 15,713 | 15,817 | ||||||||||||
Other equity instrument investments | 926 | 995 | 834 | 903 | ||||||||||||
Hedge instruments | 37 | 37 | 37 | 37 | ||||||||||||
Investment properties | 166 | 166 | 65 | 65 | ||||||||||||
Fixed assets | 96,707 | 97,681 | 62,767 | 63,685 | ||||||||||||
Construction in progress | 20,550 | 20,685 | 19,934 | 20,088 | ||||||||||||
Right-of-use assets | 117,111 | 116,842 | 74,567 | 73,612 | ||||||||||||
Intangible assets | 2,552 | 1,816 | 1,177 | 1,172 | ||||||||||||
Goodwill | 9,028 | 9,028 | 9,028 | 9,028 | ||||||||||||
Long-term deferred expenses | 2,294 | 2,412 | 1,890 | 1,997 | ||||||||||||
Deferred income tax assets | 6,456 | 5,011 | 3,441 | 2,497 | ||||||||||||
Other non-current assets | 2,733 | 2,850 | 2,988 | 3,017 | ||||||||||||
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Total non-current assets | 260,918 | 259,910 | 192,441 | 191,918 | ||||||||||||
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Total assets | 292,115 | 282,408 | 247,341 | 237,168 | ||||||||||||
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4.1 | Financial Statements (Cont’d) |
China Eastern Airlines Corporation Limited
Consolidated and Company’s Balance Sheet as at 31 March 2021 (unaudited) (Cont’d)
RMB million | ||||||||||||||||
Liabilities and shareholders’ equity | 31 March 2021 Consolidated | 31 December 2020 Consolidated | 31 March 2021 Company | 31 December 2020 Company | ||||||||||||
Current liabilities | ||||||||||||||||
Short-term borrowings | 27,600 | 21,966 | 39,038 | 32,586 | ||||||||||||
Hedge instruments | 105 | 3 | 105 | 3 | ||||||||||||
Notes payables | 721 | 610 | 721 | 610 | ||||||||||||
Trade payables | 12,874 | 12,281 | 10,853 | 10,021 | ||||||||||||
Account collected in advance | 26 | 20 | 3 | 3 | ||||||||||||
Contract liabilities | 3,863 | 3,671 | 3,527 | 3,231 | ||||||||||||
Staff remuneration payable | 2,548 | 3,806 | 1,820 | 2,559 | ||||||||||||
Tax payable | 1,460 | 1,401 | 526 | 478 | ||||||||||||
Other payables | 5,191 | 6,119 | 4,095 | 7,629 | ||||||||||||
Non-current liabilities due within one year | 19,856 | 23,181 | 13,831 | 17,149 | ||||||||||||
Other current liabilities | 12,232 | 26,750 | 12,199 | 26,699 | ||||||||||||
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Total current liabilities | 86,476 | 99,808 | 86,718 | 100,968 | ||||||||||||
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Non-current liabilities | ||||||||||||||||
Long-term borrowings | 30,649 | 13,164 | 30,525 | 13,164 | ||||||||||||
Bonds payable | 26,523 | 17,581 | 24,794 | 15,794 | ||||||||||||
Hedge instruments | 138 | 138 | 138 | 138 | ||||||||||||
Lease liabilities | 81,935 | 82,178 | 52,858 | 52,309 | ||||||||||||
Long-term payables | 1,051 | 1,047 | 485 | 498 | ||||||||||||
Long-term staff remuneration payable | 2,733 | 2,582 | 2,149 | 2,028 | ||||||||||||
Estimated liabilities | 7,042 | 6,966 | 2,990 | 2,961 | ||||||||||||
Deferred income | 116 | 121 | 108 | 116 | ||||||||||||
Deferred income tax liabilities | 15 | 13 | — | — | ||||||||||||
Other non-current liabilities | 1,894 | 1,898 | 949 | 985 | ||||||||||||
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Total non-current liabilities | 152,096 | 125,688 | 114,996 | 87,993 | ||||||||||||
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Total liabilities | 238,572 | 225,496 | 201,714 | 188,961 | ||||||||||||
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4.1 | Financial Statements (Cont’d) |
China Eastern Airlines Corporation Limited
Consolidated and Company’s Balance Sheet as at 31 March 2021 (unaudited) (Cont’d)
RMB million | ||||||||||||||||
Liabilities and shareholders’ equity | 31 March 2021 Consolidated | 31 December 2020 Consolidated | 31 March 2021 Company | 31 December 2020 Company | ||||||||||||
Shareholders’ equity | ||||||||||||||||
Share capital | 16,379 | 16,379 | 16,379 | 16,379 | ||||||||||||
Capital reserves | 34,298 | 34,298 | 35,000 | 35,000 | ||||||||||||
Other comprehensive income | (2,792 | ) | (2,368 | ) | (2,129 | ) | (1,705 | ) | ||||||||
Surplus reserves | 796 | 782 | 794 | 780 | ||||||||||||
Undistributed profits | 1,237 | 4,916 | (4,417 | ) | (2,247 | ) | ||||||||||
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Total equity attributable to shareholders of the parent company | 49,918 | 54,007 | 45,627 | 48,207 | ||||||||||||
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Minority interests | 3,625 | 2,905 | — | — | ||||||||||||
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Total shareholders’ equity | 53,543 | 56,912 | 45,627 | 48,207 | ||||||||||||
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Total liabilities and shareholders’ equity | 292,115 | 282,408 | 247,341 | 237,168 | ||||||||||||
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The financial statements are signed by:
Legal representative: Liu Shaoyong
Officer-in-charge of accounting: Li Yangmin
Officer-in-charge of the accounting department: Zhou Qimin
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4.1 | Financial Statements (Cont’d) |
China Eastern Airlines Corporation Limited
Consolidated and Company’s Income Statement for the Period from January to March 2021 (unaudited)
RMB million | ||||||||||||||||
Jan to Mar | Jan to Mar | Jan to Mar | Jan to Mar | |||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Consolidated | Consolidated | Company | Company | |||||||||||||
Revenue | 13,395 | 15,454 | 8,502 | 10,631 | ||||||||||||
Less: Operating costs | 17,835 | 18,546 | 10,836 | 11,807 | ||||||||||||
Taxes and surcharges | 37 | 46 | 11 | 22 | ||||||||||||
Selling expenses | 676 | 913 | 515 | 727 | ||||||||||||
Administrative expenses | 706 | 751 | 478 | 487 | ||||||||||||
Research and development expenses | 44 | 40 | — | 29 | ||||||||||||
Finance costs | 1,118 | 1,948 | 899 | 1,483 | ||||||||||||
Of which: Interest expenses | 1,313 | 1,354 | 1,065 | 1,057 | ||||||||||||
Interest income | 41 | 17 | 40 | 16 | ||||||||||||
Credit impairment loss | — | — | — | — | ||||||||||||
Add: Other gains | 1,301 | 1,130 | 449 | 574 | ||||||||||||
Investment gains | 84 | (6 | ) | 533 | (6 | ) | ||||||||||
Of which: Gains from investments in associates and joint ventures | (9 | ) | (6 | ) | (9 | ) | (6 | ) | ||||||||
Gains/(Loss) arising from changes in fair value | 12 | (22 | ) | 12 | (22 | ) | ||||||||||
Gains from disposal of assets | (1 | ) | — | (1 | ) | — | ||||||||||
Operating profit | (5,625 | ) | (5,688 | ) | (3,244 | ) | (3,378 | ) | ||||||||
Add: Non-operating income | 39 | 61 | 10 | 36 | ||||||||||||
Less: Non-operating expenses | 6 | 1 | 5 | 1 | ||||||||||||
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Total profits | (5,592 | ) | (5,628 | ) | (3,239 | ) | (3,343 | ) | ||||||||
Less: Income tax expenses | (1,479 | ) | (1,437 | ) | (943 | ) | (827 | ) | ||||||||
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Net profit | (4,113 | ) | (4,191 | ) | (2,296 | ) | (2,516 | ) | ||||||||
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| |||||||||
Classified by continuation of business | ||||||||||||||||
Net profit from continuing activities | (4,113 | ) | (4,191 | ) | ||||||||||||
Classified by ownership | ||||||||||||||||
Net profit attributable to shareholders of the parent company | (3,805 | ) | (3,933 | ) | ||||||||||||
Minority interests | (308 | ) | (258 | ) |
17
4.1 | Financial Statements (Cont’d) |
China Eastern Airlines Corporation Limited
Consolidated and Company’s Income Statement for the Period from January to March 2021 (unaudited) (Cont’d)
RMB million | ||||||||||||||||
Jan to Mar | Jan to Mar | Jan to Mar | Jan to Mar | |||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
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 | — | — | — | — | ||||||||||||
Other comprehensive income that cannot be transferred to profit or loss under the equity method | 3 | — | 3 | — | ||||||||||||
Changes in fair value of other equity instrument investments | (68 | ) | (174 | ) | (68 | ) | (175 | ) | ||||||||
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Other comprehensive income that will be reclassified into profit or loss | ||||||||||||||||
Cash flow hedge reserve | (359 | ) | (115 | ) | (359 | ) | (127 | ) | ||||||||
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Other comprehensive income, net of tax | (424 | ) | (289 | ) | (424 | ) | (302 | ) | ||||||||
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Of which: | ||||||||||||||||
Other comprehensive income, net of tax, attributable to shareholders of the parent company | (424 | ) | (289 | ) | ||||||||||||
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Other comprehensive income, net of tax, attributable to minority interests | — | — | ||||||||||||||
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Total comprehensive income | (4,537 | ) | (4,480 | ) | (2,720 | ) | (2,818 | ) | ||||||||
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Of which: | ||||||||||||||||
Total comprehensive income attributable to shareholders of the parent company | (4,229 | ) | (4,222 | ) | ||||||||||||
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Total comprehensive income attributable to minority interests | (308 | ) | (258 | ) | ||||||||||||
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Earnings per share | ||||||||||||||||
Basis earnings per share (in RMB) | (0.23 | ) | (0.24 | ) | ||||||||||||
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Diluted earnings per share (in RMB) | (0.23 | ) | (0.24 | ) | ||||||||||||
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18
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 2021 (unaudited)
RMB million | ||||||||||||||||
Jan to Mar | Jan to Mar | Jan to Mar | Jan to Mar | |||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Consolidated | Consolidated | Company | Company | |||||||||||||
1. Cash flow from operating activities | ||||||||||||||||
Cash received from sales of goods and provision of labour services | 14,469 | 10,055 | 9,539 | 5,163 | ||||||||||||
Refund of taxes | — | 36 | — | 7 | ||||||||||||
Other cash received from operating activities | 2,759 | 2,070 | 1,448 | 1,219 | ||||||||||||
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Sub-total of cash inflow from operating activities | 17,228 | 12,161 | 10,987 | 6,389 | ||||||||||||
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Cash paid for purchase of goods and receiving of labour services | (9,125 | ) | (10,980 | ) | (6,989 | ) | (8,111 | ) | ||||||||
Cash paid to and for employees | (5,751 | ) | (5,618 | ) | (3,817 | ) | (3,340 | ) | ||||||||
Taxes paid | (639 | ) | (503 | ) | (187 | ) | (202 | ) | ||||||||
Other cash paid for operating activities | (1,400 | ) | (1,186 | ) | (3,437 | ) | (1,569 | ) | ||||||||
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Sub-total of cash outflow from operating activities | (16,915 | ) | (18,287 | ) | (14,430 | ) | (13,222 | ) | ||||||||
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Net cash flows from operating activities | 313 | (6,126 | ) | (3,443 | ) | (6,833 | ) | |||||||||
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19
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 2021 (unaudited) (Cont’d)
RMB million | ||||||||||||||||
Jan to Mar | Jan to Mar | Jan to Mar | Jan to Mar | |||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Consolidated | Consolidated | Company | Company | |||||||||||||
2. Cash flow from investing activities | ||||||||||||||||
Cash received from disposal of investment | 141 | — | 141 | — | ||||||||||||
Investment income in cash | 80 | — | 580 | — | ||||||||||||
Net cash received from disposal of fixed assets, intangible assets and other long-term assets | — | — | — | — | ||||||||||||
Net cash received from disposal of subsidiaries | 117 | — | 117 | — | ||||||||||||
Other cash received from investing activities | — | — | — | — | ||||||||||||
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| |||||||||
Sub-total of cash inflow from investing activities | 338 | — | 838 | — | ||||||||||||
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Amount paid in cash in relation to purchases of fixed assets, intangible assets and other long-term assets | (2,654 | ) | (1,403 | ) | (1,951 | ) | (1,397 | ) | ||||||||
Investments paid in cash | — | — | — | — | ||||||||||||
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Sub-total of cash outflow from investing activities | (2,654 | ) | (1,403 | ) | (1,951 | ) | (1,397 | ) | ||||||||
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Net cash flow from investing activities | (2,316 | ) | (1,403 | ) | (1,113 | ) | (1,397 | ) | ||||||||
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20
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 2021 (unaudited) (Cont’d)
RMB million | ||||||||||||||||
Jan to Mar | Jan to Mar | Jan to Mar | Jan to Mar | |||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Consolidated | Consolidated | Company | Company | |||||||||||||
3. Cash flow from financing activities | ||||||||||||||||
Cash received from borrowings | 54,515 | 27,397 | 56,322 | 27,484 | ||||||||||||
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Sub-total of cash inflow from financing activities | 54,515 | 27,397 | 56,322 | 27,484 | ||||||||||||
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Cash paid for repayment of indebtedness | (40,146 | ) | (8,328 | ) | (40,630 | ) | (9,974 | ) | ||||||||
Cash payments for distribution of dividends, profits expense or payment of interest | (1,310 | ) | (1,618 | ) | (1,065 | ) | (1,218 | ) | ||||||||
Of which: Payment of dividends and profits to minority interests from subsidiaries | — | — | — | — | ||||||||||||
Other cash paid for financing activities | (3,020 | ) | (4,265 | ) | (2,043 | ) | (2,522 | ) | ||||||||
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| |||||||||||||||
Sub-total of cash outflow from financing activities | (44,476 | ) | (14,211 | ) | (43,738 | ) | (13,714 | ) | ||||||||
|
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Net cash flow from financing activities | 10,039 | 13,186 | 12,584 | 13,770 | ||||||||||||
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4. Effect of changes in exchange rate on cash and cash equivalents | 6 | 12 | 6 | 7 | ||||||||||||
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5. Net (decrease)/increase in cash and cash equivalents | 8,042 | 5,669 | 8,034 | 5,547 | ||||||||||||
Add: Balance of cash and cash equivalents at the beginning of the period | 7,651 | 1,350 | 7,560 | 1,107 | ||||||||||||
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6. Balance of cash and cash equivalents at the end of the period | 15,693 | 7,019 | 15,594 | 6,654 | ||||||||||||
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21