Air China : FIRST QUARTERLY REPORT 2019

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

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

(Stock Code: 00753)

FIRST QUARTERLY REPORT 2019

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 25 April 2019 and passed the resolution approving the first quarterly report 2019 of the Company for the first quarter ended 31 March 2019 (the "Reporting Period" or "Period") prepared in accordance with the PRC Accounting Standards for Business Enterprises.

1.IMPORTANT NOTICE

1.1The 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.

1.2Particulars of absent directors

	Position of	Reason(s) for
Name of absent director	absent director	absence	Name of proxy
John Robert Slosar	Director	Business engagement	Cai Jianjiang
Stanley Hui Hon-chung	Independent Director	Business engagement	Liu Deheng

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1.3Mr. Cai Jianjiang (legal representative and the Chairman of the Board of the Company), Mr. Xiao Feng (person in charge of accounting function and the Chief Accountant), and Mr. Zhan Zhong (person in charge of accounting department (accounting superintendent) and the general manager of finance department) hereby guarantee that the financial statements set out in this quarterly report are true, accurate and complete.

1.4The first quarterly report of the Company is unaudited.

2.BASIC INFORMATION OF THE COMPANY

2.1Major financial data

			Unit: RMB'000
			Increase/
			decrease at
			the end of
			the Reporting
			Period as
	At the end of	At the end	compared to
	the Reporting	of the	the end of the
	Period	previous year	previous year
			(%)
Total assets	281,178,118	243,716,006	15.37
Net asset attributable to shareholders of
the listed company	89,876,726	93,216,239	-3.58
	For the period
	from the		Increase/
	beginning of		decrease as
	the year to the	For the	compared to the
	end of the	corresponding	corresponding
	Reporting	period of the	period of the
	Period	previous year	previous year
			(%)
Net cash flows from operating activities	5,935,389	7,237,628	-17.99

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				For the period
				from the		Increase/
				beginning of		decrease as
				the year to	For the	compared to the
				the end of	corresponding	corresponding
				the Reporting	period of the	period of the
				Period	previous year	previous year
						(%)
Revenue				32,554,019	31,606,754	3.00
Net profit attributable to shareholders of
the listed company				2,722,816	2,628,202	3.60
Net profit attributable to shareholders of
the listed company after deducting
non-recurring profits and losses				2,650,507	2,600,253	1.93
Weighted average return on net assets (%)				3.07	3.01	Increased by 0.06 ppt
Basic earnings per share (RMB per share)				0.20	0.19	3.60
Diluted earnings per share (RMB per share)				N/A	N/A	N/A
Non-recurring profits and losses
3	Applicable		Not applicable

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	Unit: RMB'000
	Amounts for
Items	the Period
Gains or losses on disposal of non-current assets	-1,542
Government subsidies recorded in the income statement for the current
period (excluding those closely related to the Company's normal business
and continuously entitled to in fixed amounts or quotas in accordance
with the requirements of the state policy)	32,228
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)	441
Reversal of provision for impairment of receivables and contract asset
which are individually tested for impairment	12,700
Other non-operating income and expenses not covered above	106,645
Effect of non-controlling shareholders' interests (after taxation)	-41,375
Effect of income tax	-36,788
Total	72,309

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2.2Total number of shareholders, the top 10 shareholders and the top 10 holders of tradable shares (or shares not subject to selling restrictions) as at the end of the Reporting Period

							Unit: share
Total number of shareholders							140,457
			Particulars of the top 10 shareholders
				Number
		Number of		of shares
		shares held as at		held subject
		the end of	Shareholding	to selling	Shares pledged or frozen		Nature of
Name of shareholder (full name)		the Period	percentage	restrictions	Status	Number	shareholder
China National Aviation Holding		5,952,236,697	40.98	513,478,818	Frozen	127,445,536	State-owned
	Corporation Limited						legal person
Cathay Pacific Airways Limited		2,633,725,455	18.13	0	Nil	0	Foreign legal person
HKSCC NOMINEES LIMITED		1,687,836,428	11.62	0	Unknown	0	Foreign legal person
China National Aviation		1,556,334,920	10.72	0	Frozen	36,454,464	Foreign legal person
	Corporation (Group) Limited
China National Aviation Fuel		468,485,702	3.23	0	Nil	0	State-owned
	Group Corporation						legal person
China Securities Finance		311,302,365	2.14	0	Nil	0	State-owned
	Corporation Limited						legal person
Zhongyuan Equity Investment		128,369,705	0.88	0	Unknown	128,369,705	State-owned
	Management Co., Ltd.						legal person
China Structural Reform		106,869,159	0.74	0	Nil	0	State-owned
	Fund Co., Ltd.						legal person
Hong Kong Securities Clearing		69,406,658	0.48	0	Nil	0	Foreign legal person
	Company Ltd.
China Merchants Bank Co.,		33,312,200	0.23	0	Nil	0	Others

Ltd. - Bosera CSI Central-SOEs'

Structural Reform ETF

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