Exhibit 99.1
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.
(Stock Code: 1055)
THIRD QUARTERLY REPORT OF 2020
Summary
The 2020 third quarterly financial report of China Southern Airlines Company Limited (the “Company”, together with its subsidiaries, the “Group”) was prepared in accordance with the PRC Accounting Standards and was unaudited.
This announcement is published pursuant to rules 13.09 and 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited. |
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1 | Important Notice |
1.1 | The board of directors (the “Board”) and the supervisory committee of the Company and its directors (the “Directors”), supervisors and senior management warrant the truthfulness, accuracy and completeness of the content contained in this quarterly report, and the report does not contain inaccurate or misleading statements or material omission, and jointly and severally accept full legal responsibility. |
1.2 | All Directors attended the meeting of the Board and considered the quarterly report of the Company. |
1.3 | The responsible person of the Company, Mr. Wang Chang Shun (Chairman), the responsible person of the finance work of the Company, |
1.4 | The 2020 third quarterly report of the Company is unaudited. |
2 | Major accounting data and changes of shareholders of the Company |
2.1 | Major accounting data |
Unit: Million Currency: RMB
30 September 2020 | 31 December 2019 | Increase/ (decrease) | ||||
Total assets | 315,491 | 306,646 | 2.88 | |||
Total equity attributable to shareholders of the Company | 72,091 | 63,863 | 12.88 | |||
Nine months ended | Nine months ended | Increase/ (decrease) | ||||
Net cash flows from operating activities | 3,977 | 24,776 | -83.95 | |||
Nine months ended | Nine months ended | Increase/ (decrease) | ||||
Operating revenue | 65,350 | 116,665 | -43.98 | |||
Net profit attributable to the shareholders of the Company | -7,463 | 4,078 | -283.01 | |||
Net profit attributable to the shareholders of the Company after deducting non-recurring gains and losses | -7,816 | 3,601 | -317.05 | |||
Weighted average return on net assets (%) | -11.20 | 6.26 | Decreased by 17.46 percentage points | |||
Basic earnings per share (RMB/share) | -0.55 | 0.33 | -266.67 | |||
Diluted earnings per share (RMB /share) | -0.55 | 0.33 | -266.67 |
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Non-recurring gains and losses
Ö Applicable ☐ Not applicable
Unit: Million Currency: RMB
Items | Amount for the reporting period (July to September 2020) | Amount for the period from the beginning of the year to the end of the reporting period (January to September 2020) | ||||||
Gains or losses on disposal of non-current assets | 37 | 118 | ||||||
Government grants recorded in the income statement for the current period (exclusive of government grants which are closely related to the business of the Company and entitled pursuant to unified standard quota or amount under the government policy) | 11 | 24 | ||||||
Gains or losses from changes in fair value of other non-current financial assets | -4 | -10 | ||||||
Other non-operating income and expenses besides items above | 115 | 466 | ||||||
Effect on non-controlling interests after taxation | -10 | -96 | ||||||
Effect of income tax | -40 | -149 | ||||||
Total | 109 | 353 |
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2.2 | Total number of shareholders, particulars of the top ten shareholders and the top ten shareholders holding the Company’s tradable shares not subject to selling restrictions as at the end of the reporting period. |
Unit: Share
Total number of shareholders (shareholders) |
| 233,457 | ||||||||||||||||||||
Particulars of the top ten shareholders | ||||||||||||||||||||||
Pledged or frozen shares | ||||||||||||||||||||||
Name of the shareholder (in full) | Number of shares held as at the end of the reporting period | Share holding (%) | Number of shares subject to trading restrictions | Status | Number of shares | Capacity | ||||||||||||||||
China Southern Air Holding Company Limited | 6,981,865,780 | 45.55 | 2,942,637,115 | No | 0 | State-owned legal entity | ||||||||||||||||
Nan Lung Holding Limited | 2,243,271,577 | 14.63 | 1,209,621,577 | No | 0 | State-owned legal entity | ||||||||||||||||
HKSCC Nominees Limited | 1,750,491,857 | 11.42 | — | | Not known | | — | Overseas legal entity | ||||||||||||||
Hong Kong Securities Clearing Company Limited | 579,687,575 | 3.78 | 0 | No | 0 | Overseas legal entity | ||||||||||||||||
China National Aviation Fuel Group Corporation | 490,980,970 | 3.20 | 0 | No | 0 | State-owned legal entity | ||||||||||||||||
China Securities Finance Corporation Limited | 320,484,156 | 2.09 | 0 | No | 0 | State-owned legal entity | ||||||||||||||||
American Airlines, Inc | 270,606,272 | 1.77 | 0 | No | 0 | Overseas legal entity | ||||||||||||||||
China Structural Reform Fund Co., Ltd. | 242,524,916 | 1.58 | 0 | No | 0 | State-owned legal entity | ||||||||||||||||
Spring Airlines Co., Ltd. | 140,531,561 | 0.92 | 0 | No | 0 | Domestic non-State-owned legal entity | ||||||||||||||||
Guo Xin Central Enterprise Operation Investment Fund Management (Guangzhou) Co., Ltd. – Guo Xin Central Enterprise Operation (Guangzhou) Investment Fund (LLP) | 70,006,275 | 0.46 | 0 | No | 0 | Domestic non-State-owned legal entity | ||||||||||||||||
Particulars of the top ten shareholders holding the Company’s tradable shares not subject to trading restrictions |
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Name of the shareholder | Number of tradable | Type and number of shares | ||||
Type of shares | Number of shares | |||||
China Southern Air Holding Company Limited | 4,039,228,665 | RMB ordinary shares | 4,039,228,665 | |||
HKSCC Nominees Limited | 1,750,491,857 | Overseas listed foreign shares | 1,750,491,857 | |||
Nan Lung Holding Limited | 1,033,650,000 | Overseas listed foreign shares | 1,033,650,000 | |||
Hong Kong Securities Clearing Company Limited | 579,687,575 | RMB ordinary shares | 579,687,575 | |||
China National Aviation Fuel Group Corporation | 490,980,970 | RMB ordinary shares | 490,980,970 | |||
China Securities Finance Corporation Limited | 320,484,156 | RMB Ordinary shares | 320,484,156 | |||
American Airlines, Inc. | 270,606,272 | Overseas listed foreign shares | 270,606,272 | |||
China Structural Reform Fund Co., Ltd. | 242,524,916 | RMB Ordinary shares | 242,524,916 | |||
Spring Airlines Co., Ltd. | 140,531,561 | RMB Ordinary shares | 140,531,561 | |||
Guo Xin Central Enterprise Operation Investment Fund Management (Guangzhou) Co., Ltd. – Guo Xin Central Enterprise Operation (Guangzhou) Investment Fund (LLP) | 70,006,275 | RMB Ordinary shares | 70,006,275 | |||
Explanation of the connected relationship or acting in concert relationship of the above shareholders | China Southern Air Holding Company Limited held aggregate 2,279,983,577 (including shares subject to trading restrictions) H shares of the Company through its wholly-owned subsidiaries in Hong Kong, namely Nan Lung Holding Limited and Perfect Lines (Hong Kong) Limited. The Company is not aware of any other connected relationship between other shareholders. | |||||
Explanation of the preference shareholders with restored voting rights and its number of shares | Not applicable |
2.3 | Total number of preference shareholders, particulars of the top ten preference shareholders and the top ten preference shareholders holding the Company’s tradable preference shares not subject to selling restrictions as at the end of the reporting period |
☐ Applicable Ö Not applicable
3 | Major Events |
3.1 | Significant changes in major accounting items and financial indicators of the Company and the reasons for such changes |
Ö Applicable ☐ Not applicable
For details of changes in important accounting estimates, please refer to the “Announcement of China Southern Airlines on Changes in Accounting Estimates” disclosed on the China Securities Journal, Shanghai Securities News, Securities Times and the Shanghai Stock Exchange website on August 29, 2020.
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3.1.1 | Significant changes in major items in consolidated balance sheet: |
Description and reasons for changes of other financial statements items were as follows:
Unit: Million Currency: RMB
Items | End of the | End of the | Percentage | Main reason(s) for the change | ||||
Cash at bank and on hand | 17,235 | 1,994 | 764.34 | Mainly due to the increase of funds raised on special accounts from issuance of shares during the reporting period | ||||
Derivative financial assets | / | 218 | -100.00 | Mainly due to the derecognition of derivative financial assets resulted from the maturity of cross currency swaps, and forward foreign exchange contracts were recognised as derivative financial liabilities resulted from the fair value changes affected by exchange rate fluctuations during the reporting period | ||||
Prepayments | 457 | 1,591 | -71.28 | Mainly due to the decrease in prepayments for jet fuel | ||||
Other receivables | 1,637 | 2,358 | -30.58 | Mainly due to the receipt of government grants during the reporting period | ||||
Intangible assets | 6,004 | 3,709 | 61.88 | Mainly because the land use rights of the Beijing New Airport China Southern Airlines base were transferred from construction in progress | ||||
Deferred tax assets | 6,191 | 2,697 | 129.55 | Mainly due to the increase in deferred tax assets calculated at the income tax rate as a result of the loss during the reporting period | ||||
Bills payable | 573 | / | / | Mainly due to the increase in the use of settlement by bills during the reporting period | ||||
Sales in advance of carriage | 5,162 | 10,303 | -49.90 | Mainly due to the decrease of sales in advance of carriage resulted from the effect of COVID-19 pandemic | ||||
Long-term loans | 7,628 | 2,391 | 219.03 | Mainly due to the increase of long-term borrowings during the reporting period | ||||
Bonds payable | 20,085 | 11,246 | 78.60 | Mainly due to the issuance of medium-term notes during the reporting period |
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3.1.2 | Significant changes in major items in consolidated income statement: |
Unit: Million Currency: RMB
Items | Nine | Nine | Percentage | Main reason(s) for the change | ||||
Operating revenue | 65,350 | 116,665 | -43.98 | Mainly due to the combined effect of the decrease of passenger revenue and the increase of cargo and mail revenue resulted from the effect of COVID-19 pandemic | ||||
Cost of sales | 67,572 | 99,547 | -32.12 | Mainly due to the decrease of traffic volume resulted from the effect of COVID-19 pandemic, together with the decrease of jet fuel price | ||||
Financial expenses | 3,866 | 7,146 | -45.9 | Mainly due to the fluctuation of exchange rate of Renminbi against US dollar | ||||
Investment income | -477 | 550 | -186.73 | Mainly due to the loss made by the associates resulted from the effect of COVID-19 pandemic | ||||
Gains/(losses) arising from changes in fair value | -55 | 506 | -110.87 | Mainly due to the maturity of cross currency swaps, and affected by exchange rate fluctuations, forward foreign exchange contracts resulted a negative fair value changes during the reporting period | ||||
Gains/(losses) on disposal of assets | 126 | 53 | 137.74 | Mainly due to the disposal of fixed assets during the reporting period |
3.1.3 | Significant changes in major items in consolidated cash flow statement: |
Unit: Million Currency: RMB
Items | Nine | Nine | Percentage | Main reason(s) for the change | ||||
Net cash flows from operating activities | 3,977 | 24,776 | -83.95 | Mainly due to the decrease of operating revenue resulted from the effect of COVID-19 pandemic | ||||
Net cash flows from investing activities | -1,550 | -11,671 | -86.72 | Mainly due to the decrease of aircraft introduced | ||||
Net cash flows from financing activities | 12,119 | -19,304 | 162.78 | Mainly due to the increase in issuance of shares, borrowings, medium-term notes and corporate bonds during the reporting period |
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3.2 | Analysis and explanation of the development of major events and their impact and proposal as to the solutions |
Ö Applicable ☐ Not applicable
On 21 September 2020, the Company received the Approval of China Southern Airlines Company Limited’s Public Issuance of Convertible Bonds (Zheng Jian Xu Ke [2020] No. 2264) issued by the China Securities Regulatory Commission, approving the Company’s public issuance of convertible bonds with a total amount of RMB16 billion. On 13 October 2020, the Company issued relevant announcements, such as the “Announcement on the Public Issuance of A Share Convertible Bonds by China Southern Airlines” and the “Prospectus for the Public Issuance of A Share Convertible Bonds by China Southern Airlines”, to start the public issuance of A share convertible bonds. On 16 October 2020, the Company issued the “Announcement on China Southern Airlines’ Public Issuance of A Share Convertible Bonds Online Issuance Rate and Priority Placement Results”. On 19 October 2020, the Company issued the “Announcement on the Results of the Online Issuance of A Share Convertible Bonds by China Southern Airlines”. On 21 October 2020, the Company published the “Announcement on the Results of China Southern Airlines’ Public Issuance of A Share Convertible Bonds”. The said public issuance of A Share Convertible Bonds has been completed smoothly. On 30 October 2020, the Company issued the “Announcement for the Listing of A Share Convertible Bonds by China Southern Airlines”. The said A Share Convertible Bonds publicly issued will be listed on 3 November 2020.. For details of the above announcements, please refer to the announcements disclosed by the Company in the “China Securities Journal”, “Shanghai Securities News”, “Securities Times” and the website of the Shanghai Stock Exchange.
3.3 | Status on the guarantee provided by the Company |
As of the date of this report, the Company and its holding subsidiaries have established 46 special purpose vehicles (“SPVs”) including China Southern Airlines No. 1 to No. 27, Chongqing Airlines No. 1 to No. 2 and Xiamen Airlines No. 1 to No. 17. The amounts of guarantee actually provided by the Company to China Southern Airlines No. 1 to No. 10, China Southern Airlines No. 12 to No. 26 were approximately US$150 million, US$139 million, US$89 million, US$16 million, US$62 million, US$35 million, US$35 million, US$35 million, US$588 million, US$517 million, US$25 million, US$25 million, US$33 million, US$311 million, US$527 million, US$149 million, US$250 million, US$51 million, US$51 million, US$48 million, US$48 million, US$48 million, US$278 million, US$204 million and US$473 million, respectively. The amounts of guarantee actually provided by Chongqing Airlines to Chongqing Airlines No. 1 to No. 2 were approximately US$360 million and US$33 million, respectively. The amounts of guarantee actually provided by Xiamen Airlines to Xiamen Airlines No. 1 to No. 17 were approximately US$17 million, US$11 million, US$11 million, US$14 million, US$15 million, US$20 million, US$9 million, US$14 million, US$15 million, US$15 million, US$16 million, US$13 million, US$19 million, US$18 million, US$18 million, US$13 million and US$12 million, respectively. The total amounts of guarantees provided by the Company and its holding subsidiaries for the aforementioned 44 SPVs were approximately US$4.83 billion, equivalent to approximately RMB 32.893 billion (calculated based on the exchange rate of US$1 to RMB1:6.8101), all of which fall within the authorized scope of guarantee approved by the Company in its general meeting of shareholders.
3.4 | Undertakings of overdue performance during the reporting period |
☐ Applicable Ö Not applicable
3.5 | Warning in respect of, and the reason for, the forecast of a probable loss in respect of the accumulated net profit from the beginning of the financial year to the end of the next reporting period or any significant changes as compared to the corresponding period of the previous year |
Ö Applicable ☐ Not applicable
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In the first three quarters of 2020, affected by the COVID-19 pandemic, the global aviation industry has experienced severe challenges. With the gradual stabilization of the domestic pandemic control situation, domestic’s civil aviation is showing a steady recovery and development trend, however, due to the impact of the overseas pandemic, the scale of passenger transportation on international routes continues to remain low. In the face of unprecedented difficulties, the Group is taking pandemic prevention and control as part of its normal operations. On one hand, the Group has been strengthening its cost control to make every effort to reduce the losses caused by the pandemic and actively seek policy support and, on the other hand, seizing market opportunities to adopt various measures to increase passenger and freight revenue, and to help the Company survive the pandemic smoothly. In view of the huge losses caused by the pandemic to the aviation industry and the global economy, it is expected that the operating results of the Group in 2020 will be materially and adversely affected. Investors are advised to pay attention to investment risks.
By order of the Board |
China Southern Airlines Company Limited |
Xie Bing |
Company Secretary |
Guangzhou, the People’s Republic of China
30 October 2020
As at the date of this announcement, the Directors include Wang Chang Shun, Ma Xu Lun and Han Wen Sheng as executive Directors; and Zheng Fan, Gu Hui Zhong, Tan Jin Song and Jiao Shu Ge as independent non-executive Directors.
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4 | APPENDIX |
4.1 | Financial Statements |
Consolidated Balance Sheet
As at 30 September 2020
Prepared by: China Southern Airlines Company Limited
Unit: Million Currency: RMB Unaudited
Items | 30 September 2020 | 31 December 2019 | ||||||
Current assets: | ||||||||
Cash at bank and on hand | 17,235 | 1,994 | ||||||
Derivative financial assets | 218 | |||||||
Bills receivable | 1 | |||||||
Accounts receivable | 3,038 | 3,197 | ||||||
Prepayments | 457 | 1,591 | ||||||
Other receivables | 1,637 | 2,358 | ||||||
Including: Interest receivable | 32 | 8 | ||||||
Dividends receivable | 101 | 7 | ||||||
Inventories | 2,131 | 1,893 | ||||||
Other current assets | 5,905 | 5,486 | ||||||
Total current assets | 30,403 | 16,738 | ||||||
Non-current assets: | ||||||||
Long-term equity investments | 5,595 | 6,445 | ||||||
Other equity instrument investments | 938 | 1,049 | ||||||
Other non-current financial assets | 96 | 106 | ||||||
Investment properties | 309 | 304 | ||||||
Fixed assets | 84,395 | 84,374 | ||||||
Construction in progress | 32,872 | 39,344 | ||||||
Right-of-use assets | 146,472 | 149,941 | ||||||
Intangible assets | 6,004 | 3,709 | ||||||
Long-term deferred expenses | 697 | 652 | ||||||
Deferred tax assets | 6,191 | 2,697 | ||||||
Other non-current assets | 1,519 | 1,287 | ||||||
Total non-current assets | 285,088 | 289,908 | ||||||
Total assets | 315,491 | 306,646 | ||||||
Current liabilities: | ||||||||
Short-term loans | 11,247 | 12,250 | ||||||
Derivative financial liabilities | 25 | |||||||
Bills payable | 573 | |||||||
Accounts payable | 12,108 | 13,797 | ||||||
Sales in advance of carriage | 5,162 | 10,303 | ||||||
Contract liabilities | 1,539 | 1,610 | ||||||
Employee benefits payable | 3,313 | 3,976 | ||||||
Taxes payable | 630 | 760 | ||||||
Other payables | 8,720 | 7,503 | ||||||
Including: Interest payable | 718 | 345 | ||||||
Dividends payable | 26 | 6 | ||||||
Non-current liabilities due within one year | 21,722 | 22,794 | ||||||
Other current liabilities | 24,300 | 22,497 | ||||||
Total current liabilities | 89,339 | 95,490 |
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Non-current liabilities: | ||||||||
Long-term loans | 7,628 | 2,391 | ||||||
Bonds payable | 20,085 | 11,246 | ||||||
Lease liabilities | 107,707 | 114,076 | ||||||
Deferred income | 826 | 833 | ||||||
Deferred tax liabilities | 98 | 232 | ||||||
Other non-current liabilities | 5,777 | 5,324 | ||||||
Total non-current liabilities | 142,121 | 134,102 | ||||||
Total liabilities | 231,460 | 229,592 | ||||||
Owners’ equity (or shareholders’ equity) | ||||||||
Share capital (or issued capital) | 15,329 | 12,267 | ||||||
Capital reserve | 38,350 | 25,623 | ||||||
Other comprehensive income | 308 | 406 | ||||||
Surplus reserve | 2,579 | 2,579 | ||||||
Retained earnings | 15,525 | 22,988 | ||||||
Total equity attributable to shareholders of the Company | 72,091 | 63,863 | ||||||
Non-controlling interests | 11,940 | 13,191 | ||||||
Total owners’ equity(or shareholders’ equity) | 84,031 | 77,054 | ||||||
Total liabilities and owners’ equity(or shareholders’ equity) | 315,491 | 306,646 |
Legal Representative of the Company: Mr. Wang Chang Shun
Responsible person of the finance work: Mr. Ma Xu Lun
Responsible person of the accounting department:Ms.Wu Ying Xiang
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Balance Sheet of the Company
As at 30 September 2020
Prepared by: China Southern Airlines Company Limited
Unit: Million Currency: RMB Unaudited
Items | 30 September 2020 | 31 December 2019 | ||||||
Current assets: | ||||||||
Cash at bank and on hand | 11,592 | 937 | ||||||
Derivative financial assets | 218 | |||||||
Accounts receivable | 1,359 | 3,102 | ||||||
Prepayments | 625 | 1,684 | ||||||
Other receivables | 1,391 | 1,752 | ||||||
Including: Interest receivable | 150 | 135 | ||||||
Dividends receivable | 98 | 7 | ||||||
Inventories | 1,443 | 1,235 | ||||||
Assets held for sale | 689 | |||||||
Other current assets | 4,617 | 4,508 | ||||||
Total current assets | 21,027 | 14,125 | ||||||
Non-current assets: | ||||||||
Long-term equity investments | 15,183 | 15,044 | ||||||
Other equity instrument investments | 188 | 188 | ||||||
Other non-current financial assets | 21 | 22 | ||||||
Investment properties | 452 | 435 | ||||||
Fixed assets | 56,873 | 56,774 | ||||||
Construction in progress | 23,815 | 30,233 | ||||||
Right-of-use assets | 122,563 | 123,618 | ||||||
Intangible assets | 4,275 | 1,967 | ||||||
Long-term deferred expenses | 71 | 78 | ||||||
Deferred tax assets | 5,569 | 2,536 | ||||||
Other non-current assets | 1,333 | 1,034 | ||||||
Total non-current assets | 230,343 | 231,929 | ||||||
Total assets | 251,370 | 246,054 | ||||||
Current liabilities: | ||||||||
Short-term loans | 8,391 | 15,079 | ||||||
Derivative financial liabilities | 25 | |||||||
Bills payable | 573 | |||||||
Accounts payable | 8,152 | 10,107 | ||||||
Sales in advance of carriage | 3,798 | 8,318 | ||||||
Contract liabilities | 1,359 | 1,442 | ||||||
Employee benefits payable | 1,693 | 2,916 | ||||||
Taxes payable | 143 | 91 | ||||||
Other payables | 7,624 | 9,527 | ||||||
Including: Interest payable | 584 | 304 | ||||||
Dividends payable | ||||||||
Non-current liabilities due within one year | 17,169 | 18,176 | ||||||
Other current liabilities | 23,501 | 19,498 | ||||||
Total current liabilities | 72,428 | 85,154 |
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Non-current liabilities: | ||||||||
Long-term loans | 6,979 | 2,320 | ||||||
Bonds payable | 15,988 | 8,149 | ||||||
Lease liabilities | 90,293 | 94,075 | ||||||
Deferred income | 439 | 442 | ||||||
Other non-current liabilities | 4,113 | 3,827 | ||||||
Total non-current liabilities | 117,812 | 108,813 | ||||||
Total liabilities | 190,240 | 193,967 | ||||||
Owners’ equity | ||||||||
Share capital (or issued capital) | 15,329 | 12,267 | ||||||
Capital reserve | 38,423 | 25,541 | ||||||
Other comprehensive income | 18 | 68 | ||||||
Surplus reserve | 2,579 | 2,579 | ||||||
Retained earnings | 4,781 | 11,632 | ||||||
Total owners’ equity (or shareholders’ equity) | 61,130 | 52,087 | ||||||
Total liabilities and owners’ equity (or shareholders’ equity) | 251,370 | 246,054 |
Legal Representative of the Company: Mr. Wang Chang Shun
Responsible person of the finance work: Mr. Ma Xu Lun
Responsible person of the accounting department: Ms. Wu Ying Xiang
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Consolidated Income Statement
For the nine months ended 30 September 2020
Prepared by: China Southern Airlines Company Limited
Unit: Million Currency: RMB Unaudited
Items | Third quarter of 2020 | Third quarter of 2019 | Nine months ended 30 September 2020 | Nine months ended 30 September 2019 | ||||||||||||
1. Total revenue | 26,386 | 43,726 | 65,350 | 116,665 | ||||||||||||
Including: Operating revenue | 26,386 | 43,726 | 65,350 | 116,665 | ||||||||||||
2. Total operating costs | 26,443 | 42,180 | 78,470 | 115,242 | ||||||||||||
Including: Cost of sales | 24,428 | 35,102 | 67,572 | 99,547 | ||||||||||||
Taxes and surcharges | 65 | 84 | 206 | 270 | ||||||||||||
Selling and distribution expenses | 1,490 | 1,978 | 3,825 | 5,311 | ||||||||||||
General and administrative expenses | 1,013 | 1,039 | 2,728 | 2,735 | ||||||||||||
Research and development expenses | 109 | 74 | 273 | 233 | ||||||||||||
Financial expenses | -662 | 3,903 | 3,866 | 7,146 | ||||||||||||
Including: interest expenses | 1,673 | 1,512 | 5,078 | 4,388 | ||||||||||||
Interest income | 118 | 6 | 160 | 64 | ||||||||||||
Add: Other income | 1,124 | 1,044 | 2,318 | 2,887 | ||||||||||||
Investment income (“-” for losses) | 108 | 351 | -477 | 550 | ||||||||||||
Including: Share of profit of associates and joint ventures | 104 | 349 | -555 | 511 | ||||||||||||
Gains/(losses) arising from changes in fair value (“-” for losses) | -141 | 383 | -55 | 506 | ||||||||||||
Credit losses (“-” for losses) | -1 | -13 | -1 | |||||||||||||
Gains/(losses) on disposal of assets | 45 | 16 | 126 | 53 | ||||||||||||
3. Operating profit (“-” for losses) | 1,079 | 3,339 | -11,221 | 5,418 | ||||||||||||
Add: Non-operating income | 161 | 300 | 560 | 635 | ||||||||||||
Less: Non-operating expenses | 43 | 1 | 78 | 15 | ||||||||||||
4. Total profits (“-” for losses) | 1,197 | 3,638 | -10,739 | 6,038 | ||||||||||||
Less: Income tax expenses | 267 | 783 | -2,193 | 1,471 | ||||||||||||
5. Net profit (“-” for net losses) | 930 | 2,855 | -8,546 | 4,567 | ||||||||||||
(1) By continuity | ||||||||||||||||
1) Net profit from continuing operations (“-” for net losses) | 930 | 2,855 | -8,546 | 4,567 | ||||||||||||
2) Net profit from discontinued operations (“-” for net losses) | ||||||||||||||||
(2) By ownership | ||||||||||||||||
1) Net profit attributable to shareholders of the Company | 711 | 2,388 | -7,463 | 4,078 | ||||||||||||
2) Non-controlling interests | 219 | 467 | -1,083 | 489 | ||||||||||||
6. Other comprehensive income, net of tax | 5 | -21 | -137 | -72 | ||||||||||||
Other comprehensive income (net of tax) attributable to shareholders of the Company | 5 | -22 | -98 | -73 | ||||||||||||
(1) Items that will not be reclassified to profit or loss | 1 | -47 | 3 | |||||||||||||
1) Equity-accounted investees - share of other comprehensive income (non-recycling) | 1 | -2 | 3 | |||||||||||||
2) Changes in fair value of other equity instruments | -45 | |||||||||||||||
(2) Items that may be reclassified subsequently to profit or loss: | 5 | -23 | -51 | -76 | ||||||||||||
1) Equity-accounted investees - share of other comprehensive income (recycling) | -6 | |||||||||||||||
2) Cash flow hedge: net movement in the hedging reserve (effective portion in cash flow hedge) | 5 | -21 | -44 | -66 | ||||||||||||
3) Translation differences arising on translation of foreign currency financial statements | -2 | -1 | -10 | |||||||||||||
Other comprehensive income (net of tax) attributable to non-controlling interests | 1 | -39 | 1 | |||||||||||||
7. Total comprehensive income | 935 | 2,834 | -8,683 | 4,495 | ||||||||||||
(1) Attributable to shareholders of the Company | 716 | 2,366 | -7,561 | 4,005 | ||||||||||||
(2) Attributable to non-controlling interests | 219 | 468 | -1,122 | 490 | ||||||||||||
8. Earnings per share: | ||||||||||||||||
(1) Basic earnings per share (RMB/share) | 0.05 | 0.22 | -0.55 | 0.33 | ||||||||||||
(2) Diluted earnings per share (RMB/share) | 0.05 | 0.22 | -0.55 | 0.33 |
Legal Representative of the Company: Mr. Wang Chang Shun
Responsible person of the finance work: Mr. Ma Xu Lun
Responsible person of the accounting department: Ms. Wu Ying Xiang
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Income Statement of the Company
For the nine months ended 30 September 2020
Prepared by: China Southern Airlines Company Limited
Unit: Million Currency: RMB Unaudited
Items | Third quarter of 2020 | Third quarter of 2019 | Nine months ended 30 September 2020 | Nine months ended 30 September 2019 | ||||||||||||
1. Total revenue | 16,535 | 30,004 | 40,798 | 80,356 | ||||||||||||
Less: Cost of sales | 16,708 | 24,426 | 46,302 | 68,731 | ||||||||||||
Taxes and surcharges | 34 | 44 | 120 | 115 | ||||||||||||
Selling and distribution expenses | 928 | 1,363 | 2,413 | 3,545 | ||||||||||||
General and administrative expenses | 631 | 637 | 1,629 | 1,609 | ||||||||||||
Research and development expenses | 50 | 37 | 133 | 132 | ||||||||||||
Financial expenses | -636 | 3,092 | 2,906 | 5,463 | ||||||||||||
Including: Interest expense | 1,298 | 1,195 | 3,908 | 3,248 | ||||||||||||
Interest income | 86 | 8 | 120 | 46 | ||||||||||||
Add: Other income | 446 | 688 | 969 | 1,735 | ||||||||||||
Investment income (“-” for losses) | 402 | 392 | 1,761 | 556 | ||||||||||||
Including: Share of profit of associates and joint ventures | 105 | 347 | -556 | 496 | ||||||||||||
Gains/(losses) arising from changes in fair value (“-” for losses) | -133 | 389 | -44 | 512 | ||||||||||||
Credit losses (“-” for losses) | -1 | -13 | ||||||||||||||
Gains/(losses) on disposal of assets | 19 | 1 | 81 | 73 | ||||||||||||
2. Operating profit (“-” for losses) | -447 | 1,875 | -9,951 | 3,637 | ||||||||||||
Add: Non-operating income | 146 | 263 | 364 | 552 | ||||||||||||
Less: Non-operating expenses | 32 | -3 | 61 | 6 | ||||||||||||
3. Total profits (“-” for losses) | -333 | 2,141 | -9,648 | 4,183 | ||||||||||||
Less: Income tax expenses | -234 | 435 | -2,797 | 905 | ||||||||||||
4. Net profit (“-” for net losses) | -99 | 1,706 | -6,851 | 3,278 | ||||||||||||
(1) Net profit from continuing operations (“-” for net losses) | -99 | 1,706 | -6,851 | 3,278 | ||||||||||||
(2) Net profit from discontinued operations (“-” for net losses) | ||||||||||||||||
5. Other comprehensive income, net of tax | 5 | -21 | -50 | -66 | ||||||||||||
(1) Items that will not be reclassified to profit or loss | ||||||||||||||||
(2) Items that may be reclassified to profit or loss: | 5 | -21 | -50 | -66 | ||||||||||||
1) Equity-accounted investees - share of other comprehensive income (recycling) | -6 | |||||||||||||||
2) Cash flow hedge: net movement in the hedging (effective portion in cash flow hedge) | 5 | -21 | -44 | -66 | ||||||||||||
6. Total comprehensive income | -94 | 1,685 | -6,901 | 3,212 |
Legal Representative of the Company: Mr. Wang Chang Shun
Responsible person of the finance work: Mr. Ma Xu Lun
Responsible person of the accounting department: Ms. Wu Ying Xiang
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Consolidated Cash Flow Statement
For the nine months ended 30 September 2020
Prepared by: China Southern Airlines Company Limited
Unit: Million Currency: RMB Unaudited
Items | Nine months ended 30 September 2020 | Nine months ended 30 September 2019 | ||||||
1. Cash flows from operating activities: | ||||||||
Proceeds from sale of goods and rendering of services | 64,528 | 126,797 | ||||||
Refund of taxes and surcharges | 342 | 30 | ||||||
Proceeds from other operating activities | 3,057 | 2,641 | ||||||
Sub-total of operating cash inflows from operating activities | 67,927 | 129,468 | ||||||
Payment for goods and services | 43,653 | 82,998 | ||||||
Payment to and for employees | 17,251 | 18,101 | ||||||
Payment of taxes and surcharges | 2,213 | 2,649 | ||||||
Payment for other operating activities | 833 | 944 | ||||||
Sub-total of cash outflows from operating activities | 63,950 | 104,692 | ||||||
Net cash flows from operating activities | 3,977 | 24,776 | ||||||
2. Cash flows from investment activities: | ||||||||
Proceeds from disposal of investments | 3 | 467 | ||||||
Investment income received | 281 | 182 | ||||||
Net proceeds from disposal of fixed assets, intangible assets and other long-term assets | 2,699 | 554 | ||||||
Proceeds from other investing activities | 178 | 72 | ||||||
Sub-total of cash inflows from investing activities | 3,161 | 1,275 | ||||||
Payment for acquisition of fixed assets, intangible assets and other long-term assets | 3,989 | 12,314 | ||||||
Payment for acquisition of investments | 722 | 632 | ||||||
Sub-total of cash outflows from investment activities | 4,711 | 12,946 | ||||||
Net cash flows from investing activities | -1,550 | -11,671 | ||||||
3. Cash flows from financing activities: | ||||||||
Proceeds from investors | 15,951 | |||||||
Proceeds from borrowings | 50,704 | 23,265 | ||||||
Proceeds from issuance of bonds | 56,300 | 36,700 | ||||||
Sub-total of cash inflows from financing activities | 122,955 | 59,965 | ||||||
Repayments of borrowings | 105,705 | 73,665 | ||||||
Payment for dividends, profit distributions or interest | 4,871 | 5,604 | ||||||
Including: Dividends and profits paid to non-controlling shareholders of subsidiaries | 5 | 38 | ||||||
Payment for purchase of non-controlling interests of a subsidiary | 260 | |||||||
Sub-total of cash outflows from financing activities | 110,836 | 79,269 | ||||||
Net cash flows from financing activities | 12,119 | -19,304 | ||||||
4. Effect of changes in exchange rate on cash and cash equivalents | -8 | 9 | ||||||
5. Net increase in cash and cash equivalents | 14,538 | -6,190 | ||||||
Add: Cash and cash equivalents at the beginning of the period | 1,849 | 7,192 | ||||||
6. Cash and cash equivalents at the end of the period | 16,387 | 1,002 |
Legal Representative of the Company: Mr. Wang Chang Shun
Responsible person of the finance work: Mr. Ma Xu Lun
Responsible person of the accounting department: Ms. Wu Ying Xiang
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Cash Flow Statement of the Company
For the nine months ended 30 September 2020
Prepared by: China Southern Airlines Company Limited
Unit: Million Currency: RMB Unaudited
Items | Nine months ended 30 September 2020 | Nine months ended 30 September 2019 | ||||||
1. Cash flows from operating activities: | ||||||||
Proceeds from sale of goods and rendering of services | 41,421 | 88,084 | ||||||
Refund of taxes and surcharges | 18 | 23 | ||||||
Proceeds from other operating activities | 1,388 | 1,968 | ||||||
Sub-total of operating cash inflows from operating activities | 42,827 | 90,075 | ||||||
Payment for goods and services | 33,855 | 56,684 | ||||||
Payment to and for employees | 11,039 | 12,542 | ||||||
Payment of taxes and surcharges | 497 | 1,965 | ||||||
Payment for other operating activities | 388 | 593 | ||||||
Sub-total of cash outflows from operating activities | 45,779 | 71,784 | ||||||
Net cash flows from operating activities | -2,952 | 18,291 | ||||||
2. Cash flows from investment activities: | ||||||||
Proceeds from disposal of investments | 467 | |||||||
Investment income received | 2,674 | 244 | ||||||
Net proceeds from disposal of fixed assets, intangible assets and other long-term assets | 3,062 | 37 | ||||||
Proceeds from other investing activities | 142 | 44 | ||||||
Sub-total of cash inflows from investing activities | 5,878 | 792 | ||||||
Payment for acquisition of fixed assets, intangible assets and other long-term assets | 2,817 | 9,139 | ||||||
Payment for acquisition of investments | 436 | 757 | ||||||
Sub-total of cash outflows from investment activities | 3,253 | 9,896 | ||||||
Net cash flows from investing activities | 2,625 | -9,104 | ||||||
3. Cash flows from financing activities: | ||||||||
Proceeds from investors | 15,951 | |||||||
Proceeds from borrowings | 43,820 | 22,427 | ||||||
Proceeds from issuance of bonds | 51,000 | 33,500 | ||||||
Sub-total of cash inflows from financing activities | 110,771 | 55,927 | ||||||
Repayments of borrowings | 95,895 | 64,094 | ||||||
Payment for dividends, profit distributions or interest | 3,886 | 4,073 | ||||||
Sub-total of cash outflows from financing activities | 99,781 | 68,167 | ||||||
Net cash flows from financing activities | 10,990 | -12,240 | ||||||
4. Effect of changes in exchange rate on cash and cash equivalents | -8 | 8 | ||||||
5. Net increase in cash and cash equivalents | 10,655 | -3,045 | ||||||
Add: Cash and cash equivalents at the beginning of the period | 859 | 3,620 | ||||||
6. Cash and cash equivalents at the end of the period | 11,514 | 575 |
Legal Representative of the Company: Mr. Wang Chang Shun
Responsible person of the finance work: Mr. Ma Xu Lun
Responsible person of the accounting department: Ms. Wu Ying Xiang
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4.2 | Audited Report |
☐ Applicable Ö Not applicable
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