Air China : FIRST QUARTERLY REPORT OF 2021

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 OF 2021

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 29 April 2021 and passed the resolution approving the first quarterly report of 2021 of the Company for the period ended 31 March 2021 (the "Reporting Period" or "Period") prepared in accordance with the PRC Accounting Standards for Business Enterprises.

1. IMPORTANT NOTICE
2. 1. 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.
   2. All directors of the Company attended the Board meeting to review the quarterly report.
   3. Mr. Song Zhiyong (person in charge 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.
   4. The first quarterly report of the Company is unaudited.

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1. BASIC INFORMATION OF THE COMPANY
   2.1 Major financial data

						Unit: RMB'000
						Increase/decrease
						at the end of the
						Reporting Period as
				At the end of the	At the end of the	compared to the end
				Reporting Period	previous year	of the previous year
						(%)
Total assets		288,384,073	284,070,710	1.52
Net assets attributable to shareholders
of the listed company		71,464,006	77,582,421	-7.89
				For the period from		Increase/decrease
				the beginning of the	For the	as compared to the
				year to the end of the	corresponding period	corresponding period
				Reporting Period	of the previous year	of the previous year
						(%)
Net cash flows from operating activities	-1,254,296	-8,716,790	85.61
				For the period from		Increase/decrease
				the beginning of the	For the	as compared to the
				year to the end of the	corresponding period	corresponding period
				Reporting Period	of the previous year	of the previous year
						(%)
Revenue		14,580,678	17,255,757	-15.50
Net profit attributable to shareholders
of the listed company		-6,207,790	-4,805,210	-29.19
Net profit attributable to shareholders
of the listed company after deducting
non-recurring profits and losses	-6,301,309	-4,883,411	-29.03
Weighted average return on net assets	-8.33	-5.26	Decreased by 3.07
(%)					percentage points
Basic earnings per share (RMB per
share)		-0.45	-0.35	-28.57
Diluted earnings per share (RMB per
share)		N/A	N/A	N/A
Non-recurring profits and losses items and amounts
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	-1,991
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)	124,528
Other non-operating income and expenses not covered above	21,162
Effect of non-controlling shareholders' interests (after taxation)	-15,847
Effect of income tax	-34,333
Total	93,519

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2.2 Total number of shareholders, particulars of 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 (account)						152,624
	Particulars of the top 10 shareholders
			Number
			of shares
	Number of shares		held subject
	held as at the end	Shareholding	to selling	Shares pledged or frozen	Nature of
Name of shareholder (full name)	of the Period	percentage	restrictions	Status	Number	shareholder
		(%)
China National Aviation Holding Corporation	5,952,236,697	40.98	0	Frozen	127,445,536	State-owned
Limited						legal
						person
Cathay Pacific Airways Limited	2,633,725,455	18.13	0	Nil	0	Foreign legal
						person
HKSCC NOMINEES LIMITED	1,687,906,388	11.62	0	Nil	0	Foreign legal
						person
China National Aviation Corporation (Group)	1,556,334,920	10.72	0	Frozen	36,454,464	Foreign legal
Limited						person
China National Aviation Fuel Group Corporation	463,083,102	3.19	0	Nil	0	State-owned
						legal
						person
China Securities Finance Corporation Limited	311,302,365	2.14	0	Nil	0	State-owned
						legal
						person
Hong Kong Securities Clearing Company Ltd.	168,838,788	1.16	0	Nil	0	Foreign legal
						person
Agricultural Bank of China Limited - GF	44,657,648	0.31	0	Nil	0	Others
Balanced Preferred Hybrid Securities
Investment Fund
Bank of China Limited - Business Solicitation	30,624,884	0.21	0	Nil	0	Others
Industry Selective Stock Securities Investment
Fund (招商行業精選股票型證券投資基金)
Ke Miaorong (柯妙容)	26,822,811	0.18	0	Nil	0	Domestic
						natural
						person

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Particulars of the top 10 shareholders not subject to selling restrictions
	Number of tradable shares
	held not subject to selling	Class and number of shares
Name of shareholder	restrictions	Class	Number
China National Aviation Holding Corporation Limited	5,952,236,697	RMB ordinary shares	5,952,236,697
Cathay Pacific Airways Limited	2,633,725,455	Overseas listed foreign shares	2,633,725,455
HKSCC NOMINEES LIMITED	1,687,906,388	Overseas listed foreign shares	1,687,906,388
China National Aviation Corporation (Group) Limited	1,556,334,920	RMB ordinary shares	1,332,482,920
		Overseas listed foreign shares	223,852,000
China National Aviation Fuel Group Corporation	463,083,102	RMB ordinary shares	463,083,102
China Securities Finance Corporation Limited	311,302,365	RMB ordinary shares	311,302,365
Hong Kong Securities Clearing Company Ltd.	168,838,788	RMB ordinary shares	168,838,788
Agricultural Bank of China Limited - GF Balanced Preferred Hybrid Securities	44,657,648	RMB ordinary shares	44,657,648
Investment Fund
Bank of China Limited - Business Solicitation Industry Selective Stock	30,624,884	RMB ordinary shares	30,624,884
Securities Investment Fund (招商行業精選股票型證券投資基金)
Ke Miaorong (柯妙容)	26,822,811	RMB ordinary shares	26,822,811
Explanation on connected relationship or action in concert among the above	China National Aviation Corporation (Group) Limited is a wholly-owned subsidiary of China
shareholders	National Aviation Holding Corporation Limited. Accordingly, China National Aviation Holding
	Corporation Limited is directly and indirectly interested in 51.70% of the shares of the Company.
Explanation on holders of preference shares with restored voting rights and	Nil
number of shares held

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 1,687,906,388 H shares held by it in the Company do not include the 166,852,000 shares held by it as nominee of China National Aviation Corporation (Group) Limited.
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) (《境內證券市場轉持部分國有股充實全國社會保障基金實施辦 法》(財企[2009]94號)) and the Notice ([2009] No. 63) jointly issued by the Ministry of Finance, the State-ownedAssets Supervision and Administration Commission of the State Council, China Securities Regulatory Commission and the National Council for Social Security Fund, 127,445,536 shares and 36,454,464 shares held by China National Aviation Holding Corporation Limited, the controlling shareholder of the Company, and China National Aviation Corporation (Group) Limited respectively are frozen at present.

2.3 Total number of holders of preference shares, particulars of the top 10 holders of preference shares and the shareholdings of the top 10 holders of preference shares not subject to selling restrictions as at the end of the Reporting Period

Applicable 3 Not applicable

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