TIDMAIRC

RNS Number : 6831X

Air China Ld

27 April 2023

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

AIR CHINA LIMITED

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

(Stock Code: 00753)

FIRST QUARTERLY REPORT OF 2023

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

The board of directors (the "Board") of Air China Limited (the "Company") held a meeting of the Board on 26 April 2023 and passed the resolution approving the first quarterly report of 2023 of the Company for the period ended 31 March 2023 (the "Reporting Period" or "Period") prepared in accordance with the PRC Accounting Standards for Business Enterprises.

IMPORTANT NOTICE

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

The person in charge of the Company, person in charge of accounting function and person in charge of accounting department (accounting superintendent) hereby guarantee that the financial information set out in this quarterly report are true, accurate and complete.

Whether the first quarterly report of the Company is audited

   Yes            No 
   I.       MAJOR FINANCIAL DATA 
   (1)     MAJOR ACCOUNTING DATA AND FINANCIAL INDICATORS 

Unit: RMB'000

 
                                                                              Increase/ decrease 
                                                                                  as compared to 
                                                                                 the same period 
                                                                                 of the previous 
                                                    During the                          year (%) 
                                                     Reporting 
  Items                                                 Period 
 
Revenue                                             25,067,711                             94.06 
Net profit attributable to shareholders 
 of the listed company                              -2,926,407                               N/A 
Net profit attributable to shareholders 
 of the listed company after deducting 
 non-recurring profits and losses                   -3,017,904                               N/A 
Net cash flow from operating activities              6,796,158                               N/A 
Basic earnings per share (RMB per share)                 -0.19                               N/A 
Diluted earnings per share (RMB per                        N/A                               N/A 
 share) 
                                                                 Increased by 
  Weighted average return on net assets                  -8.03    7.61 percentage 
  (%)                                                             points 
 
 
                                                                                                             Increase/ 
                                                                                                              decrease 
                                                                                                         at the end of 
                                                                                                         the Reporting 
                                                                                                             Period as 
                                                At the end                    At the end                      compared 
                                                    of the                        of the                 to the end of 
                                                 Reporting                      previous                  the previous 
                                                    Period                          year                      year (%) 
 
Total assets                                   345,152,642                   295,011,335                         17.00 
Owners' equity attributable 
 to shareholders of the 
 listed 
 company                                        35,325,730                    23,609,134                         49.63 
 
   (2)     Items and amount of non-recurring profits and losses 

Unit: RMB'000

 
                                                                      Amount for 
  Items                                                                the Period 
 
Gains or losses on disposal of non-current assets                          18,082 
Government subsidies recorded in profit or loss for 
 the current period (excluding those closely related 
 to the Company's normal business operations and continuously 
 entitled to in fixed amounts or quotas in accordance 
 with the requirements of the state policy)                                84,517 
Gain or loss from change in fair value by holding 
 tradable financial assets, derivative financial assets, 
 tradable financial liabilities and derivative financial 
 liabilities, and investment income from disposal 
 of tradable financial assets, derivative financial 
 assets, tradable financial liabilities and derivative 
 financial liabilities as well as other debt investments, 
 excluding the effective hedging businesses related 
 with the normal operations of the Company                                   -271 
Reversal of provision for impairment of receivable 
 and contract assets that have undergone impairment 
 test alone                                                                 2,425 
Other non-operating income and expenses besides the 
 above items                                                               19,792 
Less: Effect of income tax                                                  6,644 
         Effect of non-controlling interests (after tax)                   26,404 
 
 
Total                                                                      91,497 
 
 

Explanation of non-recurring profits and losses items listed in the "Interpretative

Announcement for Information Disclosure of Companies That Issue Securities to the Public No.1 - Non-recurring Profits and Losses" ( 1 ) which are defined as recurring profits and losses items

   Applicable             Not applicable 
   (3)     Particulars of, and reasons for, changes in major accounting data and financial indicators 
                                     Applicable           Not applicable 
 
                                Percentage 
  Items                          of Change (%)      Major Reasons 
 
Revenue                                  94.06         With the increase in deployment 
                                                        of transportation capacity by 
                                                        the 
                                                        Company, and driven by the increase 
                                                        in both passenger load factor 
                                                        and price, the revenue increased 
                                                        significantly. 
Net profit attributable                    N/A         With the increase in deployment 
 to shareholders of the                                 of transportation capacity by 
 listed company                                         the 
                                                        Company, and driven by the increase 
                                                        in both passenger load factor 
                                                        and 
                                                        price, the loss decreased significantly. 
Net profit attributable                    N/A         With the increase in deployment 
 to shareholders of the                                 of transportation capacity by 
 listed company after                                   the 
 deducting nonrecurring                                 Company, and driven by the increase 
 profits and losses                                     in both passenger load factor 
                                                        and 
                                                        price, the loss decreased significantly. 
Net cash flow from operating               N/A         With the increase in deployment 
 activities                                             of transportation capacity by 
                                                        the 
                                                        Company, and driven by the increase 
                                                        in both passenger load factor 
                                                        and price, the revenue increased 
                                                        significantly. 
Basic earnings per share                   N/A         With the increase in deployment 
 (RMB per share)                                        of transportation capacity by 
                                                        the 
                                                        Company, and driven by the increase 
                                                        in both passenger load factor 
                                                        and 
                                                        price, the loss decreased significantly. 
Owners' equity attributable              49.63     The non-public issuance of A 
 to shareholders of the                             shares by the Company during 
 listed company                                     the Reporting Period. 
 
   II.      INFORMATION OF SHAREHOLDERS 

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

Unit: share

 
Total number of holders              Total number of holders 
 of ordinary shares                   of preference shares 
 as at the end of          126,705    with restored voting       / 
 the Reporting Period                 rights as at the end 
                                      of the Reporting Period 
                                      (if any) 
 
 
                                                                   Particulars of the top 10 shareholders 
                                                                                     Number 
                                                                                  of shares 
                                                                               held subject         Shares pledged, 
                                                                                 to selling         marked or frozen 
                                                                               restrictions 
                                         Number                                                 Status          Number 
                      Nature of           of shares      Shareholding 
Name of shareholder    shareholder        held            percentage 
                                                                  (%) 
 
China National 
 Aviation 
 Holding Corporation  State-owned 
 Limited               legal person     6,566,761,847           40.53           614,525,150     Frozen     127,445,536 
Cathay Pacific 
 Airways              Foreign legal 
 Limited               person           2,633,725,455           16.26                     0        Nil               0 
HKSCC NOMINEES        Foreign legal 
 LIMITED               person           1,688,739,345           10.42                     0        Nil               0 
China National 
 Aviation 
 Corporation (Group)  Foreign legal 
 Limited               person           1,556,334,920            9.61                     0     Frozen      36,454,464 
China Securities 
 Finance Corporation 
 Limited              Other               311,302,365            1.92                     0        Nil               0 
China National 
 Aviation 
 Fuel Group           State-owned 
 Corporation           legal person       241,079,458            1.49           167,597,765        Nil               0 
UBS AG                Other               218,305,765            1.35           218,212,290        Nil               0 
Hong Kong Securities 
 Clearing Company     Foreign legal 
 Ltd.                  person             125,260,731            0.77                     0        Nil               0 
China Structural 
 Reform Fund Co.,     State-owned 
 Ltd.                  legal person        67,039,106            0.41            67,039,106        Nil               0 
Basic Pension Fund 
 15022 Portfolio      Other                58,092,370            0.36            22,346,368        Nil               0 
 
 
                                      Particulars of the top 10 shareholders not subject to selling 
                                                               restrictions 
                                                        Number of 
                                                  tradable shares 
                                                 held not subject 
                                                       to selling            Class and number of 
                                                     restrictions            shares 
Name of shareholder                                                                     Class         Number 
 
China National Aviation Holding                                                  RMB ordinary 
 Corporation Limited                                5,952,236,697                      shares  5,952,236,697 
                                                                              Overseas listed 
Cathay Pacific Airways Limited                      2,633,725,455              foreign shares  2,633,725,455 
                                                                              Overseas listed 
HKSCC NOMINEES LIMITED                              1,688,739,345              foreign shares  1,688,739,345 
China National Aviation Corporation                                              RMB ordinary 
 (Group) Limited                                    1,556,334,920                      shares  1,332,482,920 
                                                                              Overseas listed 
                                                                               foreign shares    223,852,000 
China Securities Finance Corporation                                             RMB ordinary 
 Limited                                              311,302,365                      shares    311,302,365 
Hong Kong Securities Clearing                                                    RMB ordinary 
 Company Ltd.                                         125,260,731                      shares    125,260,731 
China National Aviation Fuel                                                     RMB ordinary 
 Group Corporation                                     73,481,693                      shares     73,481,693 
  Industrial Bank Co., Ltd. - GF 
   Ruiyi Leading Hybrid Securities 
   Investment Fund ( -                                                           RMB ordinary 
   )                                                   50,751,766                      shares     50,751,766 
                                                                                 RMB ordinary 
Basic Pension Fund 15022 Portfolio                     35,746,002                      shares     35,746,002 
  Agricultural Bank of China Limited 
   - GF Balanced Preferred Hybrid 
   Securities Investment Fund 
   ( -                                                                           RMB ordinary 
   )                                                   35,012,099                      shares     35,012,099 
Explanation on connected relationship   China National Aviation Corporation 
 or action in concert among the          (Group) Limited is a wholly-owned 
 above shareholders                      subsidiary of China National Aviation 
                                         Holding Corporation Limited. Accordingly, 
                                         China National Aviation Holding 
                                         Corporation Limited is directly 
                                         and indirectly interested in 50.14% 
                                         of the shares of the Company. 
Explanation on the participation        Nil 
 of the top 10 shareholders and 
 the top 10 shareholders not subject 
 to selling restrictions in margin 
 financing and securities lending 
 as well as margin and securities 
 refinancing business (if any) 
 

1. HKSCC NOMINEES LIMITED is a subsidiary of The Stock Exchange of Hong Kong Limited and its principal business is acting as nominee for and on behalf of other corporate shareholders or individual shareholders. The 1,688,739,345 H shares held by it in the Company do not include the 166,852,000 shares held by it as nominee of CNACG.

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

Qi [2009] No. 94) (

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

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

   III.    OTHER ALERTS 

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

                          Applicable           Not applicable 

(1) During the Reporting Period, the Company completed the non-public issuance of 1,675,977,653 A shares at a price of RMB8.95/share for a total proceeds of RMB14,999,999,994.35. For details, please refer to the Announcement on Results of Non-Public Issuance of A Shares and Changes in Share Capital of Air China Limited, which was published by the Company on the website of the Shanghai Stock Exchange (http://www.sse.com.cn/), China Securities Journal, Shanghai Securities News and Securities Daily on 18 January 2023.

(2) As of 21 March 2023, the Company acquired the control of Shandong Aviation Group Company Limited ("Shandong Aviation Group Corporation"). Shandong Aviation Group Corporation and its subsidiaries within the scope of consolidation, including Shandong Airlines Co., Ltd., will be consolidated into the financial statements of the Company. For details, please refer to the Announcement of Progress in relation to the Planning of Material Matters of Air China Limited, which was published by the Company on the website of the Shanghai Stock Exchange (http://www.sse.com.cn/), China Securities Journal, Shanghai Securities News and Securities Daily on 22 March 2023. As of the date of publication of this report, the audit of the consolidation date of the Shandong Aviation Group Corporation has not yet been completed and the actual amount of goodwill will be disclosed in the 2023 interim report of the Company.

(1)

   IV.    QUARTERLY FINANCIAL STATEMENTS 
   (1)     Type of audit opinion 
   Applicable             Not applicable 
   (2)     Financial statements 

CONSOLIDATED BALANCE SHEET

31 March 2023

Prepared by Air China Limited

Unit: RMB'000 (Unaudited)

 
                                             31 March  31 December 
  Items                                          2023         2022 
 
CURRENT ASSETS: 
  Cash and bank balance                    32,638,728   11,435,877 
  Provisions on payables 
  Contributions made 
  Financial assets held-for-trading             3,127        3,398 
  Derivative financial assets 
  Bills receivable                             66,864        7,483 
  Accounts receivable                       2,754,064    1,649,356 
  Receivables financing 
  Prepayments                                 534,029      368,692 
  Premium receivable 
  Receivables on reinsurance 
  Provisions for reinsurance contracts 
  Other receivables                         3,278,291    2,807,726 
  Including: Interest receivable 
                     Dividend receivable 
  Purchase of financial assets resold 
  Inventories                               3,291,223    2,557,823 
  Contract assets 
  Held-for-sale assets                                       1,302 
  Non-current assets due within a year 
  Other current assets                      2,872,895    3,413,474 
     Total current assets                  45,439,221   22,245,131 
 
 
                                                 31 March  31 December 
  Items                                              2023         2022 
 
NON-CURRENT ASSETS: 
  Loans and advances 
  Debt investments 
  Other debt investments                        1,362,741    1,360,982 
  Long-term receivables                           554,211      539,624 
  Long-term equity investments                 16,657,070   12,574,373 
  Investments in other equity instruments         682,537      243,760 
  Other non-current financial assets 
  Investment properties                           360,522      106,118 
  Fixed assets                                 91,209,224   86,369,754 
  Construction in progress                     38,344,929   32,908,551 
  Biological assets for production 
  Oil and gas assets 
  Right-of-use assets                         130,599,187  122,591,793 
  Intangible assets                             4,851,646    4,300,216 
  Development expenses 
  Goodwill                                      1,102,185    1,102,185 
  Long-term deferred expenses                     263,409      249,268 
  Deferred tax assets                          13,718,562   10,417,452 
  Other non-current assets                          7,198        2,128 
     Total non-current assets                 299,713,421  272,766,204 
        Total assets                          345,152,642  295,011,335 
CURRENT LIABILITIES: 
  Short-term loans                             32,133,910   19,946,147 
  Short-term financing bonds payable            2,015,075    2,006,149 
  Borrowings from central bank 
  Contributions received 
  Financial liabilities held-for-trading 
  Derivative financial liabilities 
  Bills payable                                   514,038 
  Accounts payable                             18,652,262   11,628,611 
  Air traffic liabilities                       4,233,344    2,757,601 
  Receipts in advance                              58,970       58,970 
  Contract liabilities                          1,429,008    1,095,185 
  Sale of financial assets repurchased 
  Deposits from clients and placements from 
   other banks 
  Brokerage payable 
  Underwriting fees payable 
  Employee compensations payable                4,597,600    4,317,738 
  Taxes payable                                   309,667      275,930 
  Other payables                               11,364,466   13,131,744 
  Including: Interest payable 
                     Dividend payable 
  Fees and commissions payable 
 
 
                                                         31 March    31 December 
  Items                                                      2023           2022 
 
  Amounts payable on reinsurance 
  Held-for-sale liabilities 
  Non-current liabilities due within a year            38,636,942     37,264,533 
  Other current liabilities 
     Total current liabilities                        113,945,282     92,482,608 
 
NON-CURRENT LIABILITIES: 
  Reserves on insurance contracts 
  Long-term loans                                      76,414,970     66,868,774 
  Debentures payable                                   11,194,159     11,193,342 
  Including: Preference shares 
                     Perpetual bonds 
  Lease liabilities                                    79,997,283     76,897,347 
  Long-term payables                                   27,288,413     20,551,757 
  Long-term employee compensation payables                203,659        202,016 
  Accrued liabilities                                   4,259,841      3,090,965 
  Deferred income                                         495,686        418,200 
  Deferred tax liabilities                                589,095        323,297 
  Other non-current liabilities                         1,422,288      1,422,843 
     Total non-current liabilities                    201,865,394    180,968,541 
        Total liabilities                             315,810,676    273,451,149 
 
  OWNERS' EQUITY 
   (OR SHAREHOLDERS' EQUITY): 
  Paid-up capital (or share capital)                   16,200,793     14,524,815 
  Other equity instruments 
  Including: Preference shares 
                     Perpetual bonds 
  Capital reserve                                      39,587,880     26,270,841 
  Less: Treasury shares 
  Other comprehensive income                              -75,101        421,075 
  Special reserves 
  Surplus reserves                                     11,564,287     11,564,287 
  General risk provisions                                 137,138        137,138 
  Retained earnings                                   -32,089,267    -29,309,022 
   Total owners' equity (or shareholders' 
    equity) attributable to the parent company         35,325,730     23,609,134 
  Non-controlling interests                            -5,983,764     -2,048,948 
     Total owners' equity (or shareholders' 
      equity)                                          29,341,966     21,560,186 
         Total liabilities and owners' equity (or 
          shareholders' equity)                       345,152,642    295,011,335 
 

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

CONSOLIDATED INCOME STATEMENT

January to March 2023

Prepared by Air China Limited

Unit: RMB'000 (Unaudited)

 
                                                                                     First quarter  First quarter 
  Items                                                                                    of 2023        of 2022 
 
I. Total revenue from operations                                                        25,067,711     12,917,577 
        Including: Operating income                                                     25,067,711     12,917,577 
                       Interest income 
                       Premium earned 
                       Fees and commission income 
 
II. Total operating cost                                                                29,749,323     23,144,688 
        Including: Operating costs                                                      26,319,512     19,688,533 
                       Interest expenses 
                       Fees and commission expenses 
                       Returned premium 
                       Net reimbursement paid 
                        Net amounts of provisions on insurance 
                         obligations drawn 
                       Bonus paid on insurance policy 
                       Reinsurance premium 
                       Taxes and other levies                                               69,991         52,195 
                       Selling expenses                                                  1,120,191      1,048,349 
                       General and administrative expenses                               1,110,720      1,066,408 
                       R&D expenses                                                         69,676         38,099 
                       Finance expenses                                                  1,059,233      1,251,104 
                       Including: Interest expenses                                      1,684,838      1,500,782 
                                       Interest income                                     109,982         29,366 
        Add: Other income                                                                  628,577        613,591 
                           Investment income 
                            (loss is represented by "-" sign)                              737,421      - 842,440 
                                         Including: Share of profits of associates 
                                          and joint ventures                               725,728      - 853,876 
                        Gains on derecognition of financial assets 
                         measured at amortised cost 
                       Exchange gains (loss is represented by 
                        "-" sign) 
                        Gains from net exposure to hedging (loss 
                         is represented by "-" sign) 
                        Gains from changes in fair value (loss 
                         is represented by "-" sign)                                         - 271          - 657 
                          Impairment loss of credit 
                           (loss is represented by "-" sign)                               - 4,422          4,948 
                          Impairment loss of assets 
                           (loss is represented by "-" sign) 
                        Gains from disposal of assets (loss is 
                         represented by "-" sign)                                           25,361          1,193 
 
 
                                                                  First quarter  First quarter 
  Items                                                                 of 2023        of 2022 
 
III. Profit from operations (loss is 
 represented by "-" sign)                                           - 3,294,946   - 10,450,476 
        Add: Non-operating income                                        23,216         27,255 
        Less: Non-operating expenses                                     10,703         17,989 
 
IV. Total profit (total loss is represented 
 by "-" sign)                                                       - 3,282,433   - 10,441,210 
        Less: Income tax expenses                                       - 8,785      - 569,551 
 
V. Net profit (net loss is represented 
 by "-" sign)                                                       - 3,273,648    - 9,871,659 
        (I) Classified by continuity of operations 
              1. Net profit from continuing operations 
               (net loss is represented by "-" sign)                - 3,273,648    - 9,871,659 
              2. Net profit from discontinued operation 
               (net loss is represented by "-" sign) 
        (II) Classified by ownership 
              1. Net profits attributable to shareholders 
               of the parent company (net loss is represented 
               by "-" sign)                                         - 2,926,407    - 8,899,923 
              2. Profit or loss attributable to non-controlling 
               interests (net loss is represented by 
               "-" sign)                                              - 347,241      - 971,736 
 
VI. Other comprehensive income after 
 tax, net                                                             - 362,071      - 138,086 
        (I) Other comprehensive income after tax 
         attributable to owners of the parent company, 
         net                                                          - 350,014      - 126,834 
              1. Other comprehensive income that cannot 
               be subsequently reclassified to profit 
               or loss                                                 - 19,768        - 8,021 
                       (1) Changes arising on remeasurement of 
                        defined benefit plans 
                       (2) Other comprehensive income accounted 
                        for using the equity method that cannot 
                        be reclassified to profit or loss 
                       (3) Change in fair value of investments 
                        in other equity instruments                    - 19,768        - 8,021 
                       (4) Change in fair value of own credit 
                        risk of the Company 
 
 
                                                                      First quarter  First quarter 
  Items                                                                     of 2023        of 2022 
 
              2. Other comprehensive income that will 
               be reclassified to profit or loss                          - 330,246      - 118,813 
                       (1) Other comprehensive income accounted 
                        for using the equity method that may be 
                        reclassified to profit or loss 
                       (2) Change in fair value of other debt 
                        investments                                           - 748 
                       (3) Amount of financial assets reclassified 
                        into other comprehensive income 
                       (4) Provisions for credit impairment of 
                        other debt investments                                - 405 
                       (5) Reserve for cash flow hedging 
                       (6) Exchange difference on translation 
                        of financial statements in foreign currency       - 329,093      - 118,813 
                       (7) Others 
        (II) Other comprehensive income after 
         tax attributable to non-controlling interests, 
         net                                                               - 12,057       - 11,252 
 
VII. Total comprehensive income                                         - 3,635,719   - 10,009,745 
        (I) Total comprehensive income attributable 
         to owners of the parent company                                - 3,276,421    - 9,026,757 
        (II) Total comprehensive income attributable 
         to non-controlling interests                                     - 359,298      - 982,988 
 
VIII. Earnings per share: 
        (I) Basic earnings per share (RMB per 
         share)                                                              - 0.19         - 0.65 
        (II) Diluted earnings per share (RMB per                                N/A            N/A 
         share) 
 

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

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

CONSOLIDATED CASH FLOW STATEMENT

January to March 2023

Prepared by Air China Limited

Unit: RMB'000 (Unaudited)

 
                                                          First quarter  First quarter 
  Items                                                         of 2023        of 2022 
 
I. Cash flows from operating activities: 
         Cash received from sales of goods and 
          provision of services                              28,280,057     14,657,731 
         Net increase in deposits from clients 
          and placements from banks 
        Net increase in borrowings from central 
         bank 
         Net increase in contributions received 
          from other financial institutions 
         Cash received from premiums of original 
          insurance contracts 
        Net cash receipt from reinsurance operations 
        Net increase in reserve of the insured 
         and investment 
        Cash received from interest, fees and 
         commission 
        Net increase in contributions received 
        Net increase in cash from repurchase operations 
        Net cash receipt from securities trading 
         as agent 
        Refund of taxes and levies                              583,713          9,761 
        Other cash received relating to operating 
         activities                                           1,340,351      1,204,029 
             Subtotal of cash inflows of operating 
                           activities                        30,204,121     15,871,521 
        Cash paid for goods purchased and services 
         received                                            12,538,632      9,480,709 
        Net increase in loans and advances to 
         clients 
        Net increase in deposits in central bank 
         and other banks 
         Cash paid in respect of claims under original 
          insurance contracts 
        Net increase in contributions made 
        Cash paid for interest, fees and commissions 
        Cash paid for bonus paid on insurance 
         policy 
        Cash paid to or on behalf of employees                7,184,047      6,550,937 
        Taxes and levies paid                                   353,582        236,815 
        Other cash paid relating to operating 
         activities                                           3,331,702      7,261,889 
           Subtotal of cash outflows from operating 
            activities                                       23,407,963     23,530,350 
              Net cash flows from operating activities        6,796,158    - 7,658,829 
 
 
                                                                            First quarter  First quarter 
  Items                                                                           of 2023        of 2022 
 
II. Cash flows from investing activities: 
        Cash received from sale and redemption 
         of investments                                                           231,633         30,061 
        Cash received from investment income                                       24,479         22,064 
         Net cash proceeds from disposal of fixed 
          assets, intangible assets and other long-term 
          assets                                                                   22,930        233,921 
         Net cash proceeds from disposal of subsidiaries 
          and other business units 
        Other cash received relating to investing 
         activities                                                             5,513,783         76,675 
                       Subtotal of cash inflows from investing 
                                      activities                                5,792,825        362,721 
         Cash paid for purchase and construction 
          of fixed assets, intangible assets and 
          other long-term assets                                                2,266,548      1,466,844 
        Cash paid for investments                                                  94,801        794,343 
        Net increase in secured loans 
         Net cash payments for acquisition of subsidiaries 
          and other business units 
        Other cash paid relating to investing 
         activities                                                                 3,397          1,554 
           Subtotal of cash outflows from investing 
            activities                                                          2,364,746      2,262,741 
              Net cash flows from investing activities                          3,428,079    - 1,900,020 
 
III. Cash flows from financing activities: 
        Cash received from issuance of debentures                                              5,750,000 
        Cash received from capital injection                                   14,993,017 
                            Including: Cash received from capital 
                             injection of 
                             non-controlling shareholders in subsidiaries 
        Cash received from borrowings                                          13,814,652     15,029,966 
        Other cash received relating to financing 
         activities 
                       Subtotal of cash inflows from financing 
                                      activities                               28,807,669     20,779,966 
        Cash paid for repayment of borrowings                                   4,505,775      7,581,824 
        Cash paid for repayment of debentures                                   6,000,000      3,250,000 
         Cash paid for distribution of dividends, 
          profits or payment of interest expenses                               1,936,187      1,588,383 
         Including: Dividends and profits paid 
          to non-controlling shareholders by subsidiaries 
        Other cash paid relating to financing 
         activities                                                             5,120,329      3,516,104 
           Subtotal of cash outflows from financing 
            activities                                                         17,562,291     15,936,311 
              Net cash flows from financing activities                         11,245,378      4,843,655 
 
 
                                                    First quarter  First quarter 
  Items                                                   of 2023        of 2022 
 
IV. Effect of exchange rate changes on 
 cash and cash equivalents                               - 25,125        - 7,693 
 
V. Net increase in cash and cash equivalents           21,444,490    - 4,722,887 
        Add: Balance of cash and cash equivalents 
         as at the beginning of the Period             10,607,711     15,934,713 
 
VI. Balance of cash and cash equivalents 
 as at the end of the Period                           32,052,201     11,211,826 
 

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

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

   Applicable             Not applicable 

By Order of the Board

Air China Limited

Huang Bin Huen Ho Yin

Joint Company Secretaries

Beijing, the PRC, 26 April 2023

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

   *   Independent non-executive director of the Company 

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END

QRFSEUSMWEDSELL

(END) Dow Jones Newswires

April 27, 2023 02:53 ET (06:53 GMT)

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