Air China : 2020 ANNUAL RESULTS

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)

2020 ANNUAL RESULTS

FINANCIAL HIGHLIGHTS

• During the Reporting Period, the Group recorded a revenue of RMB69,504 million with loss before tax of RMB18,466 million. The net loss attributable to equity shareholders of the Company was RMB14,403 million.
• As considered and approved by the 27th meeting of the fifth session of the Board of the Company, the Company proposed not to make profit distribution for the year of 2020.

2020 ANNUAL RESULTS

The Board hereby announces the audited consolidated financial results of the Group for the year ended 31 December 2020 together with the corresponding comparative figures for the year ended 31 December 2019 as follows:

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CONSOLIDATED STATEMENT OF PROFIT OR LOSS

FOR THE YEAR ENDED 31 DECEMBER 2020

		2020		2019
	Notes	RMB'000	RMB'000
Revenue	4	69,503,749		136,180,690
Other income and gains	6	4,356,946		4,059,190
		73,860,695		140,239,880
Operating expenses
	(14,817,474)
Jet fuel costs		(35,965,239)
Employee compensation costs		(22,012,834)	(25,473,898)
Depreciation and amortisation		(20,408,317)	(21,279,084)
Take-off, landing and depot charges		(9,239,943)	(16,440,081)
Aircraft maintenance, repair and overhaul costs		(6,423,313)	(6,119,539)
Air catering charges		(1,605,027)	(4,026,090)
Aircraft and engine lease expenses		(223,034)	(966,227)
Other lease expenses		(463,265)	(565,160)
Other flight operation expenses		(5,869,393)	(8,193,008)
Selling and marketing expenses		(2,568,362)	(4,684,722)
General and administrative expenses		(1,051,495)	(1,844,232)
Impairment loss recognised on property, plant and equipment		(439,656)	-
Net impairment loss reversed/(recognised)		92,598
under expected credit loss model			(40,682)
		(85,029,515)	(125,597,962)
(Loss)/profit from operations	7	(11,168,820)	14,641,918
Finance income		191,598		163,185
Finance costs	8	(5,099,785)	(4,948,928)
Share of results of associates		(6,148,692)	215,532
Share of results of joint ventures		155,541		259,727
Exchange gain/(loss), net		3,603,752		(1,211,171)
(Loss)/profit before taxation		(18,466,406)	9,120,263
Income tax credit/(expense)	9	2,650,275		(1,856,499)
(Loss)/profit for the year		(15,816,131)	7,263,764
Attributable to:
	(14,403,343)
- Equity shareholders of the Company		6,420,294
- Non-controlling interests		(1,412,788)	843,470
		(15,816,131)	7,263,764
(Loss)/earnings per share
	RMB(104.87) cents
- Basic and diluted	10	RMB46.74 cents

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CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 DECEMBER 2020

	2020	2019
	RMB'000	RMB'000
(Loss)/profit for the year	(15,816,131)	7,263,764
Other comprehensive (expense)/income for the year
Items that will not be reclassified to profit or loss:
- Fair value (losses)/gains on investments in equity instruments
at fair value through other comprehensive income	(19,933)	3,842
- Income tax relating to items that will not be reclassified
to profit or loss	4,983	(59)
- Remeasurement of net defined benefit liability	3,265	(3,905)
- Share of other comprehensive income of associates	94,761	441,862
Items that may be reclassified subsequently to profit or loss:
- Fair value (losses)/gains on investments in debt instruments
at fair value through other comprehensive income	(4,310)	3,551
- Impairment loss on investments in debt instruments
at fair value through other comprehensive income
included in profit or loss	7,637	8,096
- Income tax relating to items that may be
reclassified subsequently to profit or loss	(832)	(2,912)
- Share of other comprehensive income of associates	139,255	23,272
- Exchange differences on translation of foreign operations	(1,111,691)	495,324
Other comprehensive (expense)/income
for the year (net of tax)	(886,865)	969,071
Total comprehensive (expense)/income for the year	(16,702,996)	8,232,835
Attributable to:
- Equity shareholders of the Company	(15,260,368)	7,370,539
- Non-controlling interests	(1,442,628)	862,296
	(16,702,996)	8,232,835

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CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AT 31 DECEMBER 2020

		31 December			31 December
		2020	2019
	Note	RMB'000			RMB'000
Non-current assets
Property, plant and equipment		101,346,490	102,158,432
Right-of-use assets		114,539,680	119,376,500
Investment properties		600,329	637,986
Intangible assets		36,580	36,610
Goodwill		1,099,975	1,099,975
Interests in associates		10,938,428	14,647,561
Interests in joint ventures		1,581,105	1,543,509
Advance payments for aircraft and flight equipment		24,907,862	22,413,867
Deposits for aircraft under leases		615,537	636,671
Equity instruments at fair value through other
comprehensive income		233,180	253,113
Debt instruments at fair value through other
comprehensive income		1,344,829	1,688,451
Deferred tax assets		6,750,883	4,352,452
Other non-current assets		298,836		544,390
		264,293,714	269,389,517
Current assets
Inventories		1,853,990	2,098,673
Accounts receivable	12	2,942,799	5,997,690
Bills receivable		6,593	362
Prepayments, deposits and other receivables		3,912,471	3,724,468
Restricted bank deposits		737,245	728,385
Cash and cash equivalents		5,837,998	8,935,282
Other current assets		4,444,806		3,331,996
		19,735,902		24,816,856
Total assets		284,029,616	294,206,373

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		31 December	31 December
		2020		2019
	Note	RMB'000	RMB'000
Current liabilities
Air traffic liabilities		(2,002,649)	(9,980,300)
Accounts payable	13	(12,510,582)	(16,578,153)
Bills payable		(62,570)	-
Dividends payable		(98,000)	-
Other payables and accruals		(11,177,928)	(11,977,447)
Current taxation		(45,614)	(938,732)
Lease liabilities		(13,560,862)	(13,861,503)
Interest-bearing bank loans and other borrowings		(39,630,365)	(22,729,991)
Provision for return condition checks		(229,514)	(869,651)
Contract liabilities		(1,280,102)	(1,037,031)
		(80,598,186)	(77,972,808)
Net current liabilities		(60,862,284)	(53,155,952)
Total assets less current liabilities		203,431,430		216,233,565
Non-current liabilities
Lease liabilities		(76,098,678)	(86,586,353)
Interest-bearing bank loans and other borrowings		(31,639,097)	(16,598,965)
Provision for return condition checks		(8,580,560)	(7,538,095)
Provision for early retirement benefit obligations		(1,351)	(1,989)
Long-term payables		(21,022)	(115,190)
Contract liabilities		(2,264,843)	(2,670,910)
Defined benefit obligations		(229,332)	(249,933)
Deferred income		(488,791)	(521,227)
Deferred tax liabilities		(334,720)	(621,440)
		(119,658,394)	(114,904,102)
NET ASSETS		83,773,036		101,329,463
CAPITAL AND RESERVES
Issued capital		14,524,815		14,524,815
Treasury shares		(3,047,564)	(3,047,564)
Reserves		66,064,076		81,981,426
Total equity attributable to equity shareholders of
the Company		77,541,327		93,458,677
Non-controlling interests		6,231,709		7,870,786
TOTAL EQUITY		83,773,036		101,329,463

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