China Southern Airlines Co Ltd 6-K, filed May 4, 2020
China Southern Airlines Co Ltd (CHKIF)
About this 6-K
China Southern Airlines Co Ltd filed this 6-K on May 4, 2020.
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
May 4, 2020
CHINA SOUTHERN AIRLINES COMPANY LIMITED
68 Qi Xin Road
Guangzhou, 510403
People’s Republic of China
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover 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
China Southern Airlines Company Limited (the “Company”) published the following announcement on April 29, 2020 on the Hong Kong Stock Exchange’s website at:
https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0429/2020042902868.pdf, in relation to the first quarterly financial report of 2020.
The announcement in English is included as exhibit to this Form 6-K.
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 SOUTHERN AIRLINES COMPANY LIMITED | ||
| By: | /s/ Xie Bing | |
| Name: | Xie Bing | |
| Title: | Company Secretary | |
Date: May 4, 2020
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.
FIRST QUARTERLY REPORT OF 2020
|
Summary
The 2020 first 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.
|
1
| 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, Mr. Ma Xu Lun (Vice Chairman and President of the Company), and the responsible person of the accounting department, Mr. Xiao Li Xin (Executive Vice President, Chief Accountant and Chief Financial Officer of the Company) warrant the truthfulness, accuracy and completeness of the financial statements contained in this quarterly report. |
| 1.4 | The 2020 first 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 | ||||||
| 31 March 2020 | 31 December 2019 | Increase / decrease at the end of the reporting period as compared to the end of the previous year (%) |
||||||||||
| Total assets |
300,280 | 306,646 | -2.08 | |||||||||
| Net assets attributable to the shareholders of the Listed Company |
58,431 | 63,863 | -8.51 | |||||||||
| Three months ended 31 March 2020 |
Three months ended 31 March 2019 |
Increase / decrease at the end of the reporting period as compared to the end of the previous year (%) |
||||||||||
| Net cash flows from operating activities |
-8,238 | 5,087 | -261.94 | |||||||||
| Three months ended 31 March 2020 |
Three months ended 31 March 2019 |
Increase / decrease at the end of the reporting period as compared to the end of the previous year (%) |
||||||||||
| Operating revenue |
21,141 | 37,633 | -43.82 | |||||||||
| Net profit attributable to the shareholders of the Listed Company |
-5,262 | 2,649 | -298.64 | |||||||||
| Net profit attributable to the shareholders of the Listed Company after deducting non-recurring gains and losses |
-5,353 | 2,459 | -317.69 | |||||||||
| Weighted average return on net assets (%) |
-8.61 | 4.10 | |
Decreased by 12.71 percentage points |
| |||||||
| Basic earnings per share (RMB/share) |
-0.43 | 0.22 | -295.45 | |||||||||
| Diluted earnings per share (RMB /share) |
-0.43 | 0.22 | -295.45 | |||||||||
Non-recurring gains and losses
☑ Applicable ☐ Not applicable
2
Unit: Million Currency: RMB
| Items |
Amount for the reporting period | |||
| 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) |
7 | |||
| Gains or losses from changes in fair value of financial assets/liabilities held for trading and derivative financial assets/liabilities and investment gains from disposal of financial assets/liabilities held for trading and derivative financial assets/liabilities and other debt investments (except for hedging activities related to the Company’s normal operating business) |
-7 | |||
| Other non-operating income and expenses besides items above |
123 | |||
| Effect on non-controlling interests after taxation |
-1 | |||
| Effect of income tax |
-31 | |||
|
|
|
|||
| Total |
91 | |||
|
|
|
|||
3
| 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) |
248,503 | |||||||||||||||||||
| Particulars of the top ten shareholders | ||||||||||||||||||||
| Name of the shareholder (in full) |
Number of shares held as at the end of the reporting period |
Shareholding (%) |
Number of shares subject to trading restrictions |
Pledged or frozen shares |
Capacity | |||||||||||||||
|
Status |
Number of shares |
|||||||||||||||||||
| China Southern Air Holding Limited Company | 4,528,431,323 | 36.92 | 489,202,658 | No |
0 | State-owned legal entity | ||||||||||||||
| HKSCC Nominees Limited | 1,750,424,907 | 14.27 | 0 | Not known |
– | Overseas legal entity | ||||||||||||||
| Nan Lung Holding Limited | 1,634,575,925 | 13.32 | 600,925,925 | No |
0 | State-owned legal entity | ||||||||||||||
| Hong Kong Securities Clearing Company Limited | 531,265,211 | 4.33 | 0 | No |
0 | Overseas legal entity | ||||||||||||||
| China National Aviation Fuel Group Corporation | 490,980,970 | 4.00 | 0 | No |
0 | State-owned legal entity | ||||||||||||||
| China Securities Finance Corporation Limited | 320,484,156 | 2.61 | 0 | No |
0 | State-owned legal entity | ||||||||||||||
| American Airlines, Inc. | 270,606,272 | 2.21 | 0 | No |
0 | Overseas legal entity | ||||||||||||||
| China Structural Reform Fund Co., Ltd. | 242,524,916 | 1.98 | 0 | No |
0 | State-owned legal entity | ||||||||||||||
| Spring Airlines Co., Ltd. | 140,531,561 | 1.15 | 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 | 0.57 | 0 | No |
0 | Domestic non-State-owned legal entity | ||||||||||||||
4
| Particulars of the top ten shareholders holding the Company’s tradable shares not subject to trading restrictions | ||||||||
| Name of the shareholder |
Number of tradable shares not subject to selling restrictions |
Type and number of shares | ||||||
| Type of shares |
Number of shares | |||||||
| China Southern Air Holding Limited Company | 4,039,228,665 | RMB ordinary shares | 4,039,228,665 | |||||
| HKSCC Nominees Limited | 1,750,424,907 | Overseas listed foreign shares | 1,750,424,907 | |||||
| Nan Lung Holding Limited | 1,033,650,000 | Overseas listed foreign shares | 1,033,650,000 | |||||
| Hong Kong Securities Clearing Company Limited | 531,265,211 | RMB ordinary shares | 531,265,211 | |||||
| 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 Limited Company held aggregate 1,671,287,925 (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 | |||||||
5
| 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 ☑ 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 |
☑ Applicable ☐ Not applicable
| 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 |
31 March 2020 |
31 December 2019 |
Percentage of Change (%) |
Main reason(s) for the change | ||||||||||
| Prepayments |
448 | 1,591 | -71.84 | Mainly due to the decrease in prepayments for jet fuel | ||||||||||
| Deferred tax assets |
4,066 | 2,697 | 50.76 | Mainly due to the tax losses resulted from the effect of COVID-19 outbreak | ||||||||||
| Sales in advance of carriage |
2,997 | 10,303 | -70.91 | Mainly due to the increase of ticket returns and decrease of sales in advance of carriage resulted from the effect of COVID-19 outbreak | ||||||||||
| Employee benefits payable |
2,291 | 3,976 | -42.38 | Mainly due to the payments of 2019 annual bonus during the reporting period | ||||||||||
| Taxes payable |
247 | 760 | -67.50 | Mainly due to the decrease of operating revenue and tax losses recognized in the reporting period, which led to the decrease of taxes payable | ||||||||||
| Long-term loans |
4,501 | 2,391 | 88.25 | Mainly due to the increase of long-term borrowings during the reporting period | ||||||||||
| Bonds payable |
18,246 | 11,246 | 62.24 | Mainly due to the issuance of medium-term notes and corporate bonds during the reporting period | ||||||||||
6
| 3.1.2 | Significant changes in major items in consolidated income statement: |
Unit: million Currency: RMB
| Items |
Three months ended 31 March 2020 |
Three months ended 31 March 2019 |
Percentage of Change (%) |
Main reason(s) for the change | ||||||||||
| Operating income | 21,141 | 37,633 | -43.82 | Mainly due to the decrease of operating revenue resulted from the effect of COVID-19 outbreak | ||||||||||
| Financial expenses | 2,633 | -41 | 6,521.95 | Mainly due to the increase of exchange losses | ||||||||||
| Investment income | -598 | 163 | -466.87 | Mainly due to the loss of associates resulted from the effect of COVID-19 outbreak | ||||||||||
| Gains/(losses) arising from changes in fair value | -24 | -147 | -83.67 | Mainly due to the fair value change of derivative financial assets during the reporting period | ||||||||||
| Income tax expenses | -1,593 | 890 | -278.99 | Mainly due to the loss during the reporting period, which led to the decrease of income tax expenses | ||||||||||
| 3.1.3 | Significant changes in major items in consolidated cash flow statement: |
Unit: million Currency: RMB
| Items |
Three months ended 31 March 2020 |
Three months ended 31 March 2019 |
Percentage of Change (%) |
Main reason(s) for the change | ||||||||||
| Proceeds from sale of goods and rendering of services | 15,829 | 38,189 | -58.55 | Mainly due to the decrease of operating revenue and increase of ticket returns in the reporting period resulted from the effect of COVID-19 outbreak | ||||||||||
| Proceeds from other operating activities | 697 | 462 | 50.87 | Mainly due to the increase of received government grants during the reporting period | ||||||||||
| Investment income received | / | 440 | -100.00 | Mainly due to the disposal of financing products during the prior period | ||||||||||
| Payment for acquisition of fixed assets, intangible assets and other long-term assets | 1,293 | 5,164 | -74.96 | Mainly due to the decrease of acquisition of aircraft and other fixed assets resulted from the effect of COVID-19 outbreak | ||||||||||
| Proceeds from borrowings | 19,388 | 6,033 | 221.37 | Mainly due to the increase of borrowings during the reporting period | ||||||||||
| Proceeds from issuance of bonds | 22,500 | 12,000 | 87.50 | Mainly due to the increase of issuance of ultra-short-term financing bills, medium-term notes and corporate bonds during the reporting period | ||||||||||
| Repayments of borrowings | 30,812 | 18,659 | 65.13 | Mainly due to the increase of repayment for short-term borrowings and ultra-short-term financing bills during the reporting period | ||||||||||
| Payment for acquisition of non-controlling interest of subsidiaries | 232 | / | / | Mainly due to the acquisition of non-controlling interest of a subsidiary | ||||||||||
7
| 3.2 | Analysis and explanation of the development of major events and their impact and proposal as to the solutions |
☑ Applicable ☐ Not applicable
On 30 October 2019, the tenth meeting of the eighth session of the Board of the Company passed the resolutions to approve the Company to enter into the A Shares subscription agreement with China Southern Air Holding Limited Company and to enter into the H Shares subscription agreement with Nan Lung Holding Limited (together referred to as the “Proposed Non-public Issuance”). China Southern Air Holding Limited Company proposed to subscribe for all A shares to be issued under the Proposed Non-public Issuance, the consideration of which shall be satisfied by cash. Nan Lung Holding Limited proposed to subscribe for all H shares to be issued under the Proposed Non-public Issuance, the consideration of which shall be satisfied by cash. The Proposed Non-public Issuance of A shares and H shares were approved by the extraordinary general meeting and the respective class meetings convened on 27 December 2019.
On 15 April 2020, the Company issued 608,695,652 H shares to Nan Lung Holding Limited and the Company had completed the relevant subscription and completion procedures with Nan Lung. For details, please refer to the “Announcement on Completion of Issuance of H Shares by the Company to Nan Lung Holding Limited” published by the Company on the China Securities Journal, Shanghai Securities News, Securities Times and the website of Shanghai Stock Exchange on 16 April 2020.
On 24 April 2020, the Issuance Examination Committee of the China Securities Regulatory Commission (the “CSRC”) reviewed the application for the non-public issuance of A shares by the Company. According to the review results, the Company’s application for the non-public issuance of A shares was approved.
Currently, the Company has not received the written approval from the CSRC. The Company will issue a separate announcement upon receipt of the formal approval document from the CSRC. For details, please refer to the “Announcement in relation to the Approval by the Issuance Examination Committee of the CSRC of the Application for the Non-public Issuance of A Shares of the Company” published by the Company on the China Securities Journal, Shanghai Securities News, Securities Times and the website of Shanghai Stock Exchange on 27 April 2020.
| 3.3 | Status on the guarantee provided by the Company |
As at the date of this report, the Company and its controlled subsidiaries have established 45 special purpose vehicles (“SPVs”), including China Southern Airlines No. 1 to No. 27, Chongqing Airlines No. 1 and Xiamen Airlines No. 1 to No. 17. The amount of guarantee provided by the Company to China Southern Airlines No. 1 to No. 10, China Southern Airlines No. 12 to No. 26 was approximately US$150 million, US$110 million, US$89 million, US$16 million, US$92 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 amount of guarantee provided by Chongqing Airlines to Chongqing Airlines No. 1 was approximately US$360 million. The amount of guarantee provided by Xiamen Airlines to Xiamen Airlines No. 1 to No. 17 was 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 amount of guarantee provided by the Company and its controlled subsidiaries to the aforementioned 43 SPVs was approximately US$4,798 million, equivalent to approximately RMB33,970 million (calculated based on exchange rate of US$1 against RMB7.08), all of which fall within the authorized scope of guarantee approved by the Company in its annual general meeting.
| 3.4 | Undertakings of overdue performance during the reporting period |
☐ Applicable ☑ Not applicable
8
| 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 |
☑ Applicable ☐ Not applicable
Since late January 2020, the global spread of the new coronavirus pneumonia epidemic (COVID-19) has led to a sharp decline in aviation demand. As of today, China’s overall epidemic control situation showed a positive trend. Many provinces and cities in China adopted differentiated policies for resuming production and work, and the demand for domestic air passenger transport recovered to a certain extent. However, due to the continuous global spread of COVID-19 and the tightening of international aviation restrictions, the international air passenger traffic has further decreased. The Group has actively responded to changes in market demand, timely adjusted its operation strategy, and vigorously reduced various costs. However, in view of the uncertainty of the development and severe impact of COVID-19 on the civil aviation industry, it is expected that the Group’s operating results in the first half of 2020 will be adversely affected. Investors are reminded of the investment risks.
By order of the Board
China Southern Airlines Company Limited
Xie Bing
Company Secretary
Guangzhou, the People’s Republic of China
29 April 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.
9
| 4. | APPENDIX |
| 4.1 | Financial Statements |
Consolidated Balance Sheet
As at 31 March 2020
Prepared by: China Southern Airlines Company Limited
Unit: Million Currency: RMB Unaudited
| Items |
31 March 2020 | 31 December 2019 | ||||||
| Current assets: |
||||||||
| Cash at bank and on hand |
1,839 | 1,994 | ||||||
| Derivative financial assets |
202 | 218 | ||||||
| Bills receivable |
1 | |||||||
| Accounts receivables |
2,895 | 3,197 | ||||||
| Prepayments |
448 | 1,591 | ||||||
| Other receivables |
1,872 | 2,358 | ||||||
| Including: Interest receivable |
3 | 8 | ||||||
| Dividend receivable |
10 | 7 | ||||||
| Inventories |
2,021 | 1,893 | ||||||
| Other current assets |
5,598 | 5,486 | ||||||
|
|
|
|
|
|||||
| Total current assets |
14,875 | 16,738 | ||||||
|
|
|
|
|
|||||
| Non-current assets: |
||||||||
| Long-term equity investments |
5,840 | 6,445 | ||||||
| Other equity instrument investments |
1,049 | 1,049 | ||||||
| Other non-current financial assets |
99 | 106 | ||||||
| Investment properties |
303 | 304 | ||||||
| Fixed assets |
82,474 | 84,374 | ||||||
| Construction in progress |
38,812 | 39,344 | ||||||
| Right-of-use assets |
147,027 | 149,941 | ||||||
| Intangible assets |
3,639 | 3,709 | ||||||
| Long-term deferred expenses |
734 | 652 | ||||||
| Deferred tax assets |
4,066 | 2,697 | ||||||
| Other non-current assets |
1,362 | 1,287 | ||||||
|
|
|
|
|
|||||
| Total non-current assets |
285,405 | 289,908 | ||||||
|
|
|
|
|
|||||
| Total assets |
300,280 | 306,646 | ||||||
|
|
|
|
|
|||||
| Current liabilities: |
||||||||
| Short-term loans |
12,023 | 12,250 | ||||||
| Bills payable |
798 | |||||||
| Accounts payable |
11,560 | 13,797 | ||||||
| Sales in advance of carriage |
2,997 | 10,303 | ||||||
| Contract liabilities |
1,737 | 1,610 | ||||||
| Employee benefits payable |
2,291 | 3,976 | ||||||
| Taxes payable |
247 | 760 | ||||||
| Other payables |
5,558 | 7,503 | ||||||
| Including: Interest payable |
417 | 345 | ||||||
| Dividends payable |
1 | 6 | ||||||
| Non-current liabilities due within one year |
22,091 | 22,794 | ||||||
| Other current liabilities |
28,800 | 22,497 | ||||||
|
|
|
|
|
|||||
| Total current liabilities |
88,102 | 95,490 | ||||||
|
|
|
|
|
|||||
10
| Non-current liabilities: |
||||||||
| Long-term loans |
4,501 | 2,391 | ||||||
| Bonds payable |
18,246 | 11,246 | ||||||
| Lease liabilities |
112,070 | 114,076 | ||||||
| Deferred income |
900 | 833 | ||||||
| Deferred tax liabilities |
172 | 232 | ||||||
| Other non-current liabilities |
5,516 | 5,324 | ||||||
|
|
|
|
|
|||||
| Total non-current liabilities |
141,405 | 134,102 | ||||||
|
|
|
|
|
|||||
| Total liabilities |
229,507 | 229,592 | ||||||
|
|
|
|
|
|||||
| Owners’ equity (or shareholders’ equity) |
||||||||
| Share capital (or issued capital) |
12,267 | 12,267 | ||||||
| Capital reserve |
25,496 | 25,623 | ||||||
| Other comprehensive income |
363 | 406 | ||||||
| Surplus reserve |
2,579 | 2,579 | ||||||
| Retained earnings |
17,726 | 22,988 | ||||||
| Total equity(or shareholders’ equity) attributable to shareholders of the Company |
58,431 | 63,863 | ||||||
| Non-controlling interests |
12,342 | 13,191 | ||||||
|
|
|
|
|
|||||
| Total owners’ equity(or shareholders’ equity) |
70,773 | 77,054 | ||||||
|
|
|
|
|
|||||
| Total liabilities and owners’ equity(or shareholders’ equity) |
300,280 | 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: Mr. Xiao Li Xin
11
Balance Sheet of the Company
As at 31 March 2020
Prepared by: China Southern Airlines Company Limited
Unit: Million Currency: RMB Unaudited
| Items |
31 March 2020 | 31 December 2019 | ||||||
| Current assets: |
||||||||
| Cash at bank and on hand |
628 | 937 | ||||||
| Derivative financial assets |
202 | 218 | ||||||
| Accounts receivable |
2,823 | 3,102 | ||||||
| Prepayments |
556 | 1,684 | ||||||
| Other receivables |
1,645 | 1,752 | ||||||
| Including: Interest receivable |
134 | 135 | ||||||
| Dividend receivable |
10 | 7 | ||||||
| Inventories |
1,328 | 1,235 | ||||||
| Assets classified as held for sale |
689 | |||||||
| Other current assets |
4,431 | 4,508 | ||||||
|
|
|
|
|
|||||
| Total current assets |
11,613 | 14,125 | ||||||
|
|
|
|
|
|||||
| Non-current assets: |
||||||||
| Long-term equity investments |
15,309 | 15,044 | ||||||
| Other equity instrument investments |
188 | 188 | ||||||
| Other non-current financial assets |
18 | 22 | ||||||
| Investment properties |
430 | 435 | ||||||
| Fixed assets |
55,037 | 56,774 | ||||||
| Construction in progress |
30,237 | 30,233 | ||||||
| Right-of-use assets |
121,012 | 123,618 | ||||||
| Intangible assets |
1,926 | 1,967 | ||||||
| Long-term deferred expenses |
73 | 78 | ||||||
| Deferred tax assets |
3,903 | 2,536 | ||||||
| Other non-current assets |
978 | 1,034 | ||||||
|
|
|
|
|
|||||
| Total non-current assets |
229,111 | 231,929 | ||||||
|
|
|
|
|
|||||
| Total assets |
240,724 | 246,054 | ||||||
|
|
|
|
|
|||||
| Current liabilities: |
||||||||
| Short-term loans |
15,174 | 15,079 | ||||||
| Bills payable |
548 | |||||||
| Accounts payable |
8,236 | 10,107 | ||||||
| Sales in advance of carriage |
1,955 | 8,318 | ||||||
| Contract liabilities |
1,557 | 1,442 | ||||||
| Employee benefits payable |
1,470 | 2,916 | ||||||
| Taxes payable |
59 | 91 | ||||||
| Other payables |
6,390 | 9,527 | ||||||
| Including: Interest payable |
327 | 304 | ||||||
| Non-current liabilities due within one year |
17,674 | 18,176 | ||||||
| Other current liabilities |
25,000 | 19,498 | ||||||
|
|
|
|
|
|||||
| Total current liabilities |
78,063 | 85,154 | ||||||
|
|
|
|
|
|||||
12
| Non-current liabilities: |
||||||||
| Long-term loans |
4,320 | 2,320 | ||||||
| Bonds payable |
14,149 | 8,149 | ||||||
| Lease liabilities |
92,434 | 94,075 | ||||||
| Deferred income |
456 | 442 | ||||||
| Other non-current liabilities |
3,908 | 3,827 | ||||||
|
|
|
|
|
|||||
| Total non-current liabilities |
115,267 | 108,813 | ||||||
|
|
|
|
|
|||||
| Total liabilities |
193,330 | 193,967 | ||||||
|
|
|
|
|
|||||
| Owners’ equity(or shareholders’ equity) |
||||||||
| Share capital(or issued capital) |
12,267 | 12,267 | ||||||
| Capital reserve |
25,541 | 25,541 | ||||||
| Other comprehensive income |
25 | 68 | ||||||
| Surplus reserve |
2,579 | 2,579 | ||||||
| Retained earnings |
6,982 | 11,632 | ||||||
|
|
|
|
|
|||||
| Total owners’ equity(or shareholders’ equity) |
47,394 | 52,087 | ||||||
|
|
|
|
|
|||||
| Total liabilities and owners’ equity(or shareholders’ equity) |
240,724 | 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: Mr. Xiao Li Xin
13
Consolidated Income Statement
For the three months ended 31 March 2020
Prepared by: China Southern Airlines Company Limited
Unit: Million Currency: RMB Unaudited
| Items |
First quarter of 2020 | First quarter of 2019 | ||||||
| 1. Total revenue |
21,141 | 37,633 | ||||||
| Including: Operating income |
21,141 | 37,633 | ||||||
| 2. Total operating costs |
28,928 | 34,692 | ||||||
| Including: Cost of sales |
23,940 | 32,072 | ||||||
| Taxes and surcharges |
49 | 66 | ||||||
| Selling and distribution expenses |
1,389 | 1,671 | ||||||
| General and administrative expenses |
831 | 836 | ||||||
| Research and development expenses |
86 | 88 | ||||||
| Financial expenses |
2,633 | -41 | ||||||
| Including: Interest expenses |
1,645 | 1,455 | ||||||
| Interest income |
16 | 36 | ||||||
| Add: Other income |
676 | 560 | ||||||
| Investment income (“-” for losses) |
-598 | 163 | ||||||
| Including: Share of profit of associates and joint ventures |
-598 | 163 | ||||||
| Gains/(losses) arising from changes in fair value (“-” for losses) |
-24 | -147 | ||||||
| Gains/(losses) on disposal of property, plant and equipment and construction in progress |
1 | 36 | ||||||
| 3. Operating profit (“-” for losses) |
-7,732 | 3,553 | ||||||
| Add: Non-operating income |
131 | 223 | ||||||
| Less:Non-operating expenses |
2 | 2 | ||||||
| 4. Total profits (“-” for losses) |
-7,603 | 3,774 | ||||||
| Less: Income tax expenses |
-1,593 | 890 | ||||||
| 5. Net profit (“-” for net losses) |
-6,010 | 2,884 | ||||||
| (1) By continuity |
||||||||
| Net profit from continuing operations (“-” for net losses) |
-6,010 | 2,884 | ||||||
| (2) By ownership |
||||||||
| Net profit attributable to shareholders of the Company |
-5,262 | 2,649 | ||||||
| Non-controlling interests |
-748 | 235 | ||||||
| 6. Other comprehensive income, net of tax |
-43 | -28 | ||||||
| Other comprehensive income (net of tax) attributable to shareholders of the Company |
-43 | -28 | ||||||
| (1) Items that will not be reclassified to profit or loss | ||||||||
| 1. Remeasurement of defined benefit plan | ||||||||
| 2. Equity-accounted investees – share of other comprehensive income (non-recycling) | ||||||||
| 3. Changes in fair value of other equity instruments | ||||||||
| 4.Changes in fair value of credit risk specific to the company |
||||||||
| (2) Items that may be reclassified subsequently to profit or loss: |
-43 | -28 | ||||||
| 1.Equity-accounted investees – share of other comprehensive income (recycling) | ||||||||
| 2.Changes in fair value of available-for-sale financial assets | ||||||||
| 3.Transferred to other comprehensive income upon reclassification of financial assets | ||||||||
| 4.Credit loss allowance for other debt instruments | ||||||||
| 5.Cash flow hedge: net movement in the hedging reserve | -43 | -22 | ||||||
| 6.Translation differences arising on translation of foreign currency financial statements | -6 | |||||||
| 7. Total comprehensive income |
-6,053 | 2,856 | ||||||
| Attributable to shareholders of the Company |
-5,305 | 2,621 | ||||||
| Attributable to non-controlling interests |
-748 | 235 | ||||||
| 8. Earnings per share: |
||||||||
| (1) Basic earnings per share (RMB/share) |
-0.43 | 0.22 | ||||||
| (2) Diluted earnings per share (RMB/share) |
-0.43 | 0.22 | ||||||
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: Mr. Xiao Li Xin
14
Income Statement of the Company
For the three months ended 31 March 2020
Prepared by: China Southern Airlines Company Limited
Unit: Million Currency: RMB Unaudited
| Items |
First quarter of 2020 | First quarter of 2019 | ||||||
| 1. Total revenue |
14,272 | 25,860 | ||||||
| Less: Cost of sales |
16,544 | 22,021 | ||||||
| Taxes and surcharges |
20 | 35 | ||||||
| Selling and distribution expenses |
923 | 1,091 | ||||||
| General and administrative expenses |
482 | 467 | ||||||
| Research and development expenses |
50 | 58 | ||||||
| Financial expenses |
2,099 | -248 | ||||||
| Including: Interest expense |
1,328 | 1,046 | ||||||
| Interest income |
5 | 27 | ||||||
| Add: Other income |
278 | 222 | ||||||
| Investment income (“-” for losses) |
-596 | 159 | ||||||
| Including: Share of profit of associates and joint ventures |
-596 | 159 | ||||||
| Gains/(losses) arising from changes in fair value (“-” for losses) |
-19 | -151 | ||||||
| Gains/(losses) on disposal of property, plant and equipment and construction in progress |
57 | 70 | ||||||
| 2. Operating profit (“-” for losses) |
-6,126 | 2,736 | ||||||
| Add: Non-operating income |
124 | 210 | ||||||
| 3. Total profits (“-” for losses) |
-6,002 | 2,946 | ||||||
| Less: Income tax expenses |
-1,352 | 697 | ||||||
| 4. Net profit (“-” for net losses) |
-4,650 | 2,249 | ||||||
| Net profit from continuing operations (“-” for net losses) |
-4,650 | 2,249 | ||||||
| Net profit from discontinued operations (“-” for net losses) |
||||||||
| 5. Other comprehensive income, net of tax |
-43 | -22 | ||||||
| (1) Items that will not be reclassified to profit or loss |
||||||||
| 1. Remeasurement of defined benefit plan |
||||||||
| 2. Equity-accounted investees – share of other comprehensive income (non-recycling) |
||||||||
| 3. Changes in fair value of other equity instruments |
||||||||
| 4. Changes in fair value of credit risk specific to the company |
||||||||
| (2) Items that may be reclassified to profit or loss: |
-43 | -22 | ||||||
| 1. Equity-accounted investees – share of other comprehensive income (recycling) |
||||||||
| 2. Changes in fair value of available-for-sale financial assets |
||||||||
| 3. Transferred to other comprehensive income upon reclassification of financial assets |
||||||||
| 4. Credit loss allowance for other debt instruments |
||||||||
| 5. Cash flow hedge: net movement in the hedging reserve |
-43 | -22 | ||||||
| 6. Translation differences arising on translation of foreign currency financial statements |
||||||||
| 6. Total comprehensive income | -4,693 | 2,227 | ||||||
| 7. Earnings per share: |
||||||||
| (1) Basic earnings per share (RMB/share) |
||||||||
| (2) Diluted earnings per share (RMB/share) |
||||||||
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: Mr. Xiao Li Xin
15
Consolidated Cash Flow Statement
For the three months ended 31 March 2020
Prepared by: China Southern Airlines Company Limited
Unit: Million Currency: RMB Unaudited
| Items |
Three months ended 31 March 2020 |
Three months ended 31 March 2019 |
||||||
| 1. Cash flows from operating activities: |
||||||||
| Proceeds from sale of goods and rendering of services |
15,829 | 38,189 | ||||||
| Refund of taxes and surcharges |
6 | 48 | ||||||
| Proceeds from other operating activities |
697 | 462 | ||||||
| Sub-total of operating cash inflows from operating activities |
16,532 | 38,699 | ||||||
| Payment for goods and services |
16,743 | 25,207 | ||||||
| Payment to and for employees |
7,074 | 7,235 | ||||||
| Payment of taxes and surcharges |
571 | 759 | ||||||
| Payment for other operating activities |
382 | 411 | ||||||
| Sub-total of cash outflows from operating activities |
24,770 | 33,612 | ||||||
| Net cash flows from operating activities |
-8,238 | 5,087 | ||||||
| 2. Cash flows from investment activities: |
||||||||
| Proceeds from disposal of investments |
440 | |||||||
| Investment income received |
9 | |||||||
| Net proceeds from disposal of fixed assets, intangible assets and other long-term assets |
207 | 269 | ||||||
| Proceeds from other investing activities |
21 | 36 | ||||||
| Sub-total of cash inflows from investing activities |
228 | 754 | ||||||
| Payment for acquisition of fixed assets, intangible assets and other long-term assets |
1,293 | 5,164 | ||||||
| Sub-total of cash outflows from investment activities |
1,293 | 5,164 | ||||||
| Net cash flows from investing activities |
-1,065 | -4,410 | ||||||
| 3. Cash flows from financing activities: |
||||||||
| Proceeds from borrowings |
19,388 | 6,033 | ||||||
| Proceeds from issuance of bonds |
22,500 | 12,000 | ||||||
| Proceeds from other financing activities |
||||||||
| Sub-total of cash inflows from financing activities |
41,888 | 18,033 | ||||||
| Repayments of borrowings |
30,812 | 18,659 | ||||||
| Payment for dividends, profit distributions or interest |
1,687 | 1,696 | ||||||
| Including: Dividends and profits paid to non-controlling shareholders of subsidiaries |
1 | |||||||
| Payment for acquisition of non-controlling interest of subsidiaries |
232 | |||||||
| Sub-total of cash outflows from financing activities |
32,731 | 20,355 | ||||||
| Net cash flows from financing activities |
9,157 | -2,322 | ||||||
| 4. Effect of changes in exchange rate on cash and cash equivalents |
2 | -7 | ||||||
| 5. Net increase in cash and cash equivalents |
-144 | -1,652 | ||||||
| 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 |
1,705 | 5,540 | ||||||
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: Mr. Xiao Li Xin
16
Cash Flow Statement of the Company
For the three months ended 31 March 2020
Prepared by: China Southern Airlines Company Limited
Unit: Million Currency: RMB Unaudited
| Items |
Three months ended 31 March 2020 |
Three months ended 31 March 2019 |
||||||
| 1. Cash flows from operating activities: |
||||||||
| Proceeds from sale of goods and rendering of services |
9,289 | 26,745 | ||||||
| Refund of taxes and surcharges |
6 | 48 | ||||||
| Proceeds from other operating activities |
385 | 314 | ||||||
| Sub-total of operating cash inflows from operating activities |
9,680 | 27,107 | ||||||
| Payment for goods and services |
12,666 | 17,432 | ||||||
| Payment to and for employees |
5,522 | 5,544 | ||||||
| Payment of taxes and surcharges |
378 | 497 | ||||||
| Payment for other operating activities |
283 | 316 | ||||||
| Sub-total of cash outflows from operating activities |
18,849 | 23,789 | ||||||
| Net cash flows from operating activities |
-9,169 | 3,318 | ||||||
| 2. Cash flows from investment activities: |
||||||||
| Proceeds from disposal of investments |
440 | |||||||
| Investment income received |
6 | |||||||
| Net proceeds from disposal of fixed assets, intangible assets and other long-term assets |
796 | 34 | ||||||
| Proceeds from other investing activities |
5 | 27 | ||||||
| Sub-total of cash inflows from investing activities |
801 | 507 | ||||||
| Payment for acquisition of fixed assets, intangible assets and other long-term assets |
646 | 4,999 | ||||||
| Payment for acquisition of investments |
232 | 203 | ||||||
| Sub-total of cash outflows from investment activities |
878 | 5,202 | ||||||
| Net cash flows from investing activities |
-77 | -4,695 | ||||||
| 3. Cash flows from financing activities: |
||||||||
| Proceeds from borrowings |
17,120 | 5,173 | ||||||
| Proceeds from issuance of bonds |
19,000 | 12,000 | ||||||
| Sub-total of cash inflows from financing activities |
36,120 | 17,173 | ||||||
| Repayments of borrowings |
25,753 | 16,458 | ||||||
| Payment for dividends, profit distributions or interest |
1,432 | 1,206 | ||||||
| Sub-total of cash outflows from financing activities |
27,185 | 17,664 | ||||||
| Net cash flows from financing activities |
8,935 | -491 | ||||||
| 4. Effect of changes in exchange rate on cash and cash equivalents |
2 | -6 | ||||||
| 5. Net increase in cash and cash equivalents |
-309 | -1,874 | ||||||
| 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 |
550 | 1,746 | ||||||
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: Mr. Xiao Li Xin
| 4.2 | Audited Report |
☐ Applicable ☑Not applicable
17