China Eastern Airlines Corporation Limited - Form 6-K

China Eastern Airlines Corporation Limited
			(Registrant)
Date		November 1, 2021			By		/s/ Wang Jian
				Name: Wang Jian
				Title: Company Secretary

2

Certain statements contained in this announcement may be regarded as "forward-looking statements" within the meaning of the U.S. Securities Exchange Act of 1934, as amended. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual performance, financial condition or results of operations of the Company to be materially different from any future performance, financial condition or results of operations implied by such forward-looking statements. Further information regarding these risks, uncertainties and other factors is included in the Company's filings with the U.S. Securities and Exchange Commission. The forward-looking statements included in this announcement represent the Company's views as of the date of this announcement. While the Company anticipates that subsequent events and developments may cause the Company's views to change, the Company specifically disclaims any obligation to update these forward-looking statements, unless required by applicable laws. These forward-looking statements should not be relied upon as representing the Company's views as of any date subsequent to the date of this announcement.

3

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: 00670)

2021 THIRD QUARTERLY REPORT

This announcement is made pursuant to the requirements under 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 financial statements of the Company for the third quarter of 2021 were not audited, and were prepared in accordance with the China Accounting Standards for Business Enterprises.

IMPORTANT NOTICE

This announcement is made by China Eastern Airlines Corporation Limited (the "Company") pursuant to the disclosure requirement under Rule 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules") (which requires any issuer listed on The Stock Exchange of Hong Kong Limited (the "Hong Kong Stock Exchange") whose securities are also listed on other stock exchange(s) to simultaneously inform the Hong Kong Stock Exchange of any information released to any of such other exchange(s) and to ensure that such information is released to the market in Hong Kong at the same time as it is released to the other market(s)). At the request of the Shanghai Stock Exchange, a similar announcement of the even date is being made simultaneously by the Company in Shanghai pursuant to the relevant provisions of the Shanghai listing rules and regulations.

This quarterly report was prepared in accordance with the regulations as prescribed by the China Securities Regulatory Commission in relation to disclosure of information in quarterly reports for listed companies, and is published simultaneously in Shanghai and Hong Kong. The financial statements of the Company for the third quarter of 2021 were not audited, and were prepared in accordance with the China Accounting Standards for Business Enterprises.

The board of directors (the "Board") and the supervisory committee of the Company, and its directors, supervisors and senior management hereby confirm that the information set out in this quarterly report does not contain false information, misleading statement or material omission, and accept joint and several responsibility for the correctness, accuracy and completeness of the information set out in this quarterly report.

4

Liu Shaoyong, the person-in-charge of the Company, Li Yangmin, the officer-in-charge of accounting of the Company, and Zhou Qimin, the officer-in-charge of the accounting department (accounting officer) of the Company, hereby confirm that the financial statements forming part of this quarterly report are true, accurate and complete.

The financial statements in this third quarterly report of the Company are unaudited.

1.	KEY FINANCIAL DATA

(1)

Key accounting data and financial indicators

Unit: million

Currency: RMB

Increase/decrease

from the

beginning of the

Increase/decrease

year to the end of

for the reporting

From the

the reporting

period compared

beginning of the

period compared

with the same

year to the end

with the same

For the reporting

period last year

of the reporting

period last year

Item

period

(%)

period

(%)

Revenue

17,791

3.61

52,501

24.12

Net profit attributable to shareholders of the listed company

-2,954

N/A

-8,162

N/A

Net profit attributable to shareholders of the listed company after deducting non-recurring profit or loss

-3,049

N/A

-8,668

N/A

Net cash flow from operating activities

N/A

N/A

12,828

12,989.80

Basic earnings per share (RMB/share)

-0.1804

N/A

-0.4983

N/A

Diluted earnings per share (RMB/share)

-0.1804

N/A

-0.4983

N/A

Weighted average return on net assets (%)

-6.37

Decreased by 5.38 pt

-16.59

Decreased by 1.81 pt

Increase/decrease

as at the end

of the reporting

period compared

As at the

with the end

end of the

As at the end

of last year

Item

reporting period

of last year

(%)

Total assets

285,468

282,408

1.08

Owners' equity attributable to shareholders of the listed company

44,891

54,007

-16.88

Note:

The "reporting period" refers to the three-month period from the beginning of this quarter to the end of this quarter, the same for below.

5

(2)

Non-recurring profit or loss items and relevant amounts

		Unit: million			Currency: RMB
					Amount from
					the beginning
					of the year to
					the end of
		Amount for the			the reporting
Item		reporting period			period
Profit or loss from disposal of non-current assets (including the write-off portion for which provision for impairment of assets is made)			-4				103
Government grants recognised in current profit or loss, excluding those closely related to the ordinary operations of the Company and granted on an ongoing basis in fixed amount or fixed quota in accordance with government policies and regulations			77				454
Profit or loss from change in fair value of held-for-trading financial assets and held-for-trading financial liabilities, and investment gains from disposal of held-for-trading financial assets, held-for-trading financial liabilities and available-for-sale financial assets, other than effective hedging business in the ordinary operations of the Company			4				7
Non-operating income and expenses other than the above			45				96
Less: Effect on income tax			26				147
Effect on minority interests (after tax)			1				7
Total			95				506

Description of the circumstances in which the non-recurring profit or loss items listed in the "Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public - Non-recurring Profit or Loss" (《公開發行證券的公司信息披露解釋性公告第 1 號 - 非經常性損益》) are defined as recurring profit or loss items

☐ Applicable ☒ Not Applicable

6

(3)

Details and reasons for changes in key accounting data and financial indicators

☒ Applicable ☐ Not Applicable

Item		Change (%)			Major reasons
Net profit attributable to shareholders of the listed company (for the reporting period)			N/A			During the reporting period, net profit attributable to shareholders of the listed company amounted to RMB-2,954 million, as compared to RMB-563 million for the same period last year, mainly attributable to the decline in demand of the passenger transportation market during the reporting period due to the impact of COVID-19, as well as the increase in jet fuel prices and the slowdown of appreciation of Renminbi as compared to the same period last year.
Net profit attributable to shareholders of the listed company after deducting non-recurring profit or loss (for the reporting period)			N/A			During the reporting period, net profit attributable to shareholders of the listed company after deducting non-recurring profit or loss amounted to RMB-3,049 million, as compared to RMB-826 million for the same period last year, mainly attributable to the decline in demand of the passenger transportation market during the reporting period due to the impact of COVID-19, as well as the increase in jet fuel prices and the slowdown of appreciation of Renminbi as compared to the same period last year.
Net cash flow from operating activities (from the beginning of the year to the end of the reporting period)			12,989.80			From January to September 2021, domestic passenger travel demand rebounded as compared to the same period last year, and the Company's revenue increased.
Basic earnings per share (RMB/share) (for the reporting period)			N/A			During the reporting period, basic earnings per share was RMB-0.1804, as compared to RMB-0.0344 for the same period last year, mainly attributable to the decline in operating results from July to September 2021.
Diluted earnings per share (RMB/share) (for the reporting period)			N/A			During the reporting period, diluted earnings per share was RMB-0.1804, as compared to RMB-0.0344 for the same period last year, mainly attributable to the decline in operating results from July to September 2021.

7

2.	INFORMATION OF SHAREHOLDERS

(1)

Total number of ordinary shareholders and number of preferred shareholders with restored voting rights and shareholding of the 10 largest shareholders

		Unit: share
Total number of ordinary shareholders as at the end of the reporting period			181,305
Total number of preferred shareholders with restored voting rights as at the end of the reporting period (if any)			N/A

		Shareholding of the 10 largest shareholders
		Nature of shareholder		Number of shares held			Percentage of shares held			Number of shares with trading moratorium held			Pledged, marked or locked-up
Name of shareholder		(%)			Status		Number
China Eastern Air Holding Company Limited ( 中國東方航空集團有限公司 )		State-owned legal person			5,072,922,927				30.97				0			None			0
HKSCC Nominees Limited		Overseas legal person			4,701,241,905				28.70				517,677,777			Unknown			0
Shanghai Jidaohang Enterprise Management Company Limited ( 上海吉道航企業管理有限公司 )		Domestic non- state-owned legal person			589,041,096				3.60				589,041,096			None			0
China National Aviation Fuel Holding Company Limited ( 中國航空油料集團有限公司 )		State-owned legal person			502,767,895				3.07				0			None			0
Delta Air Lines, Inc.		Overseas legal person			465,910,000				2.84				0			None			0
Shanghai Licheng Information Technology Consulting Co., Ltd. ( 上海勵程信息技術諮詢有限公司)		Domestic non- state-owned legal person			465,838,509				2.84				0			Pledged			285,838,509
CES Finance Holding Co., Ltd. ( 東航金控有限責任公司 )		State-owned legal person			457,317,073				2.79				0			None			0
China Securities Finance Corporation Limited ( 中國證券金融股份有限公司 )		State-owned legal person			429,673,382				2.62				0			None			0
Shanghai Juneyao (Group) Co., Ltd. ( 上海均瑤（集團）有限公司 )		Domestic non- state-owned legal person			311,831,909				1.90				311,831,909			Pledged			311,831,909
China Structural Reform Fund Corporation Limited ( 中國國有企業結構調整基金股份有限公司)		State-owned legal person			273,972,602				1.67				273,972,602			None			0

8

Shareholding of the 10 largest holders of shares without trading moratorium

Name of shareholder		Number of listed shares without trading moratorium held			Class and number of shares Class
	Number
China Eastern Air Holding Company Limited ( 中國東方航空集團有限公司 )			5,072,922,927			RMB ordinary shares			5,072,922,927
HKSCC Nominees Limited			4,183,564,128			Overseas listed foreign shares			4,183,564,128
China National Aviation Fuel Holding Company Limited ( 中國航空油料集團有限公司 )			502,767,895			RMB ordinary shares			502,767,895
Delta Air Lines, Inc.			465,910,000			Overseas listed foreign shares			465,910,000
Shanghai Licheng Information Technology Consulting Co., Ltd. ( 上海勵程信息技術諮詢有限公司 )			465,838,509			RMB ordinary shares			465,838,509
CES Finance Holding Co., Ltd. ( 東航金控有限責任公司 )			457,317,073			RMB ordinary shares			457,317,073
China Securities Finance Corporation Limited ( 中國證券金融股份有限公司 )			429,673,382			RMB ordinary shares			429,673,382
China COSCO Shipping Corporation Limited ( 中國遠洋海運集團有限公司 )			232,919,254			RMB ordinary shares			232,919,254
Hong Kong Securities Clearing Company Limited ( 香港中央結算有限公司 )			182,167,508			RMB ordinary shares			182,167,508
Agricultural Bank of China Limited - Guangfa Balance Selected Mixed Type Securities Investment Fund ( 中國農業銀行股份有限公司 - 廣發均衡優選混合型證券投資基金)			105,598,491			RMB ordinary shares			105,598,491

Description of connected relationship or activities in concert among the above shareholders		Among the 4,701,241,905 shares held by HKSCC Nominees Limited, 2,626,240,000 shares are held by CES Global Holdings (Hong Kong) Limited ("CES Global") in the capacity of beneficial owner. China Eastern Air Holding Company Limited ("CEA Holding") owns 100% equity interest in CES Finance Holding Co., Ltd. ("CES Finance"). CES Finance owns 100% equity interest in CES Global. Thus, CEA Holding directly or indirectly holds 8,156,480,000 shares of the Company, representing 49.80% of the total share capital of the Company.
	Among the 4,701,241,905 shares held by HKSCC Nominees Limited, 546,769,777 shares are held by Shanghai Juneyao Airline Hong Kong Limited ("Juneyao Hong Kong") in the capacity of beneficial owner. Shanghai Juneyao (Group) Co., Ltd. ("Juneyao Group") is the controlling shareholder of Juneyao Airlines Co., Ltd. ("Juneyao Airlines"), and Juneyao Airlines owns 100% equity interest in Shanghai Jidaohang Enterprise Management Company Limited and Juneyao Hong Kong. Thus, Juneyao Group directly or indirectly holds 1,679,042,919 shares of the Company, representing 10.25% of the total share capital of the Company.
	The Company is not aware of any other connected relationship or activities in concert among the 10 largest holders of shares without trading moratorium.
Description of the 10 largest shareholders and the 10 largest holders of shares without trading moratorium engaging in margin financing and securities lending as well as margin and securities refinancing business (if any)		N/A

As at the end of the reporting period, CES Global has pledged in aggregate 1,450,000,000 H shares of the Company; and Juneyao Hong Kong has pledged in aggregate 232,000,000 H shares of the Company.

9

3.	OTHER REMINDERS

Other important information on the operating condition of the Company during the reporting period that investors need to be reminded of

☒ Applicable ☐ Not Applicable

(1)

On 8 July 2021, Eastern Air Overseas (Hong Kong) Corporation Limited ( 東航海外（香港）有限公司), a wholly-owned subsidiary of the Company in Hong Kong, issued overseas SGD500 million credit enhanced bonds with a maturity of 5 years and an annual interest rate of 2.00%. For details, please refer to the announcement of the Company published on the website of the Shanghai Stock Exchange and the website of the Hong Kong Stock Exchange on 9 July 2021.

(2)

On 27 August 2021, at the 2021 second extraordinary general meeting of the Company, the "Resolution in Relation to the Adjustment to the Estimated Caps for the Daily Connected Transaction of the Exclusive Operation of Freight Business for Passenger Aircraft between the Company and China Cargo Airlines Co., Limited for 2021 and 2022" was considered and approved, and the estimated caps for the daily connected transaction of the exclusive operation of freight business for passenger aircraft for 2021 and 2022 were agreed to be adjusted to RMB9 billion and RMB8 billion, respectively. For details, please refer to the announcement of the Company published on the website of the Shanghai Stock Exchange and the website of the Hong Kong Stock Exchange on 27 August 2021.

(3)

On 30 August 2021, the Company and its subsidiaries, namely Shanghai Airlines Co., Limited ( 上海航空有限公司 ), China Eastern Airlines Yunnan Co., Limited ( 東方航空雲南有限公司 ), China Eastern Airlines Jiangsu Co., Limited ( 中國東方航空江蘇有限公司 ) and China Eastern Airlines Wuhan Limited ( 中國東方航空武漢有限責任公司 ), on one hand, and China Eastern Air Catering Investment Co., Ltd. ( 東方航空食品投資有限公司 ) ("Eastern Air Catering"), on the other hand, entered into the Agreement on the Transfer of Assets of Catering Trolleys and Aircraft On-Board Supplies of China Eastern Airlines Corporation Limited to China Eastern Air Catering Investment Co., Ltd., pursuant to which, the Company and its subsidiaries shall transfer their assets of catering trolleys and aircraft on-board supplies suitable for transfer in a total amount of RMB123,412,000 (tax exclusive) to Eastern Air Catering. For details, please refer to the announcement of the Company published on the website of the Shanghai Stock Exchange and the website of the Hong Kong Stock Exchange on 30 August 2021.

(4)

On 30 August 2021, at the fourth ordinary meeting of the Board of the Company, the "Resolution in Relation to the Adjustment to the Estimated Caps for the Daily Connected Transactions of the Property Leasing and Construction and Management Agency Business for 2021 and 2022" was considered and approved, and the estimated caps for the daily connected transactions of the property leasing and construction and management agency business for 2021 and 2022 were agreed to be adjusted to RMB287 million and RMB330 million, respectively, and the estimated caps for the total value of the right-of-use assets involved in the property leasing for 2021 and 2022 were agreed to be adjusted to RMB735 million and RMB828 million, respectively. For details, please refer to the announcement of the Company published on the website of the Shanghai Stock Exchange and the website of the Hong Kong Stock Exchange on 30 August 2021.

10

(5)

On 27 September 2021, the Issuance Review Committee of the China Securities Regulatory Commission considered and approved the Company's application for non-public issuance of A shares to China Eastern Air Holding Company Limited ("CEA Holding") (its controlling shareholder), and agreed to the Company's non-public issuance of 2,494,930,875 A shares to CEA Holding, with the amount of financing not exceeding RMB10.828 billion. For details, please refer to the announcement of the Company published on the website of the Shanghai Stock Exchange and the website of the Hong Kong Stock Exchange on 27 September 2021.

(6)

On 30 September 2021, the Company, on one hand, and CEA Holding (its controlling shareholder) and its subsidiary, i.e. Eastern Air Catering, on the other hand, entered into the China Eastern Air Catering Investment Co., Ltd. Capital Increase Agreement, pursuant to which, the Company and CEA Holding shall increase the capital contribution to Eastern Air Catering by an aggregate amount of RMB310 million by way of cash in proportion to their respective shareholdings, of which the Company shall contribute RMB139.5 million and CEA Holding shall contribute RMB170.5 million. For details, please refer to the announcement of the Company published on the website of the Shanghai Stock Exchange and the website of the Hong Kong Stock Exchange on 30 September 2021.

11

4.	QUARTERLY FINANCIAL STATEMENTS

(1)

Type of audit opinion

☐ Applicable ☒ Not Applicable

(2)

Financial statements

Consolidated Balance Sheet

30 September 2021

Prepared by: China Eastern Airlines Corporation Limited

Unit: million Currency: RMB Type of audit: Unaudited

Item		30 September 2021			31 December 2020
Current assets:
Monetary capital			10,844				7,663
Held-for-trading financial assets			88				95
Derivative financial assets			-				362
Trade receivables			1,881				1,124
Prepayments			378				123
Other receivables			2,422				2,476
Inventory			1,963				2,054
Held-for-sale assets			2				2
Non-current assets due within one year			359				11
Other current assets			8,512				8,588
Total current assets			26,449				22,498
Non-current assets:
Long-term equity investment			2,329				2,387
Other equity instrument investments			874				995
Other non-current financial assets			-				37
Investment properties			158				166
Fixed assets			92,463				97,681
Construction in progress			18,243				20,685
Right-of-use assets			121,195				116,842
Intangible assets			2,498				1,816
Goodwill			9,028				9,028
Long-term deferred expenses			2,112				2,412
Deferred income tax assets			8,064				5,011
Other non-current assets			2,055				2,850
Total non-current assets			259,019				259,910
Total assets			285,468				282,408

12

(2)	Financial statements (Cont'd)

Consolidated Balance Sheet (Cont'd)

30 September 2021

Prepared by: China Eastern Airlines Corporation Limited

Unit:million Currency:RMB Typeofaudit:Unaudited

Item		30 September 2021			31 December 2020
Current liabilities:
Short-term borrowings			29,291				21,966
Derivative financial liabilities			4				3
Notes payables			2,142				610
Trade payables			13,413				12,281
Account collected in advance			73				20
Contract liabilities			3,188				3,671
Staff remuneration payable			3,334				3,806
Tax payable			1,452				1,401
Other payables			6,073				6,119
Non-current liabilities due within one year			18,853				23,181
Other current liabilities			7,236				26,750
Total current liabilities			85,059				99,808
Non-current liabilities:
Long-term borrowings			29,891				13,164
Bonds payable			24,297				17,581
Lease liabilities			84,374				82,178
Long-term payables			924				1,047
Long-term staff remuneration payable			2,523				2,582
Estimated liabilities			7,276				6,966
Deferred income			102				121
Deferred income tax liabilities			13				13
Other non-current liabilities			1,917				2,036
Total non-current liabilities			151,317				125,688
Total liabilities			236,376				225,496

13

(2)	Financial statements (Cont'd)

Consolidated Balance Sheet (Cont'd)

30 September 2021

Prepared by: China Eastern Airlines Corporation Limited

Unit:million Currency:RMB Typeofaudit:Unaudited

Item		30 September 2021			31 December 2020
Owners' equity (or shareholders' equity):
Paid-up capital (or share capital)			16,379				16,379
Capital reserves			33,609				34,298
Other comprehensive income			-2,739				-2,368
Surplus reserves			782				782
Undistributed profits			-3,140				4,916
Total owners' equity (or shareholders' equity) attributable to owners of the parent company			44,891				54,007
Minority interests			4,201				2,905
Total owners' equity (or shareholders' equity)			49,092				56,912
Total liabilities and owners' equity (or shareholders' equity)			285,468				282,408

Person-in-charge of the Company: Liu Shaoyong		Officer-in-charge of accounting: Li Yangmin		Officer-in-charge of the accounting department: Zhou Qimin

14

(2)	Financial statements (Cont'd)

Consolidated Income Statement

January - September 2021

Prepared by: China Eastern Airlines Corporation Limited

Unit: million Currency: RMB Type of audit: Unaudited

		The first three quarters (January - September) of			The first three quarters (January - September) of
Item		2021			2020
I. Total revenue			52,501				42,300
Of which: Revenue			52,501				42,300
II. Total operating costs			67,880				59,060
Of which: Operating costs			59,440				50,912
Taxes and surcharges			172				117
Selling expenses			2,316				2,622
Administrative expenses			2,525				2,274
Research and development expenses			192				193
Finance costs			3,235				2,942
Of which: Interest expenses			4,326				3,972
Interest income			238				112
Add: Other gains			3,629				3,758
Investment gains ("-" indicating losses)			158				-69
Of which: Gains from investments in associates and joint ventures			45				-85
Gains arising from changes in fair value ("-" indicating losses)			-7				-29
Credit impairment losses ("-" indicating losses)			-3				-17
Asset impairment losses ("-" indicating losses)			-2				-14
Gains from disposal of assets ("-" indicating losses)			-				60
III. Operating profit ("-" indicating loss)			-11,604				-13,071
Add: Non-operating income			166				269
Less: Non-operating expenses			20				35
IV. Total profits ("-" indicating total losses)			-11,458				-12,837
Less: Income tax expenses			-2,878				-3,156
V. Net profit ("-" indicating net loss)			-8,580				-9,681
(I) Classified by continuation of business
1. Net profit from continuing activities ("-" indicating net loss)			-8,580				-9,681
2. Net profit from discontinued activities ("-" indicating net loss)			-				-
(II) Classified by ownership
1. Net profit attributable to shareholders of the parent company ("-" indicating net loss)			-8,162				-9,105
2. Minority interests ("-" indicating net loss)			-418				-576

15

(2)	Financial statements (Cont'd)

Consolidated Income Statement (Cont'd)

January - September 2021

Prepared by: China Eastern Airlines Corporation Limited

Unit:million Currency:RMB Typeofaudit:Unaudited

		The first three quarters (January - September) of			The first three quarters (January - September) of
Item		2021			2020
VI. Other comprehensive income, net of tax			-268				-83
(I) Other comprehensive income, net of tax, attributable to owners of the parent company			-265				-79
1. Other comprehensive income that cannot be reclassified into profit or loss			-20				-35
(1) Changes arising from re-measuring defined benefit plan			-29				26
(2) Other comprehensive income that cannot be transferred to profit or loss under the equity method			-				10
(3) Changes in fair value of other equity instrument investments			9				-71
(4) Changes in fair value of the enterprise's own credit risk			-				-
2. Other comprehensive income that will be reclassified into profit or loss			-245				-44
(1) Other comprehensive income that will be transferred to profit or loss under the equity method			-				-
(2) Changes in fair value of other debt investments			-				-
(3) Amount of financial assets reclassified into other comprehensive income			-				-
(4) Credit impairment provision for other debt investments			-				-
(5) Cash flow hedge reserve			-245				-44
(II) Other comprehensive income, net of tax, attributable to minority interests			-3				-4

16

(2)	Financial statements (Cont'd)

Consolidated Income Statement (Cont'd)

January - September 2021

Prepared by: China Eastern Airlines Corporation Limited

Unit:million Currency:RMB Typeofaudit:Unaudited

		The first three quarters (January - September) of			The first three quarters (January - September) of
Item		2021			2020
VII. Total comprehensive income			-8,848				-9,764
(I) Total comprehensive income attributable to owners of the parent company			-8,427				-9,184
(II) Total comprehensive income attributable to minority interests			-421				-580
VIII. Earnings per share:
(I) Basic earnings per share (RMB/share)			-0.4983				-0.5608
(II) Diluted earnings per share (RMB/share)			-0.4983				-0.5608

Person-in-charge		Officer-in-charge		Officer-in-charge
of the Company:		of accounting:		of the accounting department:
Liu Shaoyong		Li Yangmin		Zhou Qimin

17

(2)	Financial statements (Cont'd)

Consolidated Cash Flow Statement

January - September 2021

Prepared by: China Eastern Airlines Corporation Limited

Unit: million Currency: RMB Type of audit: Unaudited

				The first three			The first three
				quarters (January			quarters (January
				- September) of			- September) of
Item				2021			2020
1.		Cash flow from operating activities:
	Cash received from sales of goods and provision of labour services			54,371				42,756
	Refund of taxes			18				92
	Other cash received from operating activities			7,906				8,643
	Sub-total of cash inflow from operating activities			62,295				51,491
	Cash paid for purchase of goods and receiving of labour services			26,248				30,300
	Cash paid to and for employees			16,949				15,470
	Taxes paid			1,987				1,445
	Other cash paid for operating activities			4,283				4,178
	Sub-total of cash outflow from operating activities			49,467				51,393
	Net cash flow from operating activities			12,828				98
2.		Cash flow from investing activities:
	Cash received from disposal of investment			201				-
	Investment income in cash			103				46
	Net cash received from disposal of fixed assets, intangible assets and other long-term assets			-				94
	Net cash received from disposal of subsidiaries and other operating units			117				-
	Other cash received from investing activities			5,721				12
	Sub-total of cash inflow from investing activities			6,142				152
	Amount paid in cash in relation to purchases of fixed assets, intangible assets and other long-term assets			8,805				5,682
	Other cash paid for investing activities			31				-
	Sub-total of cash outflow from investing activities			8,836				5,682
	Net cash flow from investing activities			-2,694				-5,530

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(2)	Financial statements (Cont'd)

Consolidated Cash Flow Statement (Cont'd)

January - September 2021

Prepared by: China Eastern Airlines Corporation Limited

Unit:million Currency:RMB Typeofaudit:Unaudited

				The first three			The first three
				quarters (January			quarters (January
				- September) of			- September) of
Item				2021			2020
3.		Cash flow from financing activities:
	Cash received from acquisition of investment			284				-
	Cash received from borrowings			102,081				82,539
	Other cash received from financing activities			792				10
	Sub-total of cash inflow from financing activities			103,157				82,549
	Cash paid for repayment of indebtedness			92,259				53,662
	Cash payments for distribution of dividends, profits expense or payment of interest			4,326				4,883
	Other cash paid for financing activities			13,528				10,837
	Sub-total of cash outflow from financing activities			110,113				69,382
	Net cash flow from financing activities			-6,956				13,167
4.		Effect of changes in exchange rate on cash and cash equivalents			3				-23
5.		Net increase in cash and cash equivalents			3,181				7,712
	Add: Balance of cash and cash equivalents at the beginning of the period			7,651				1,350
6.		Balance of cash and cash equivalents at the end of the period			10,832				9,062

Person-in-charge		Officer-in-charge		Officer-in-charge
of the Company:		of accounting:		of the accounting department:
Liu Shaoyong		Li Yangmin		Zhou Qimin

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(3)

Adjustment to financial statements at the beginning of the year upon adoption of the new leasing standards for the first time starting from 2021

☐ Applicable ☒ Not Applicable

The Board of

CHINA EASTERN AIRLINES CORPORATION LIMITED

29 October 2021

As at the date of this announcement, the directors of the Company include Liu Shaoyong (Chairman), Li Yangmin (Vice Chairman, President), Tang Bing (Director), Lin Wanli (Director), Cai Hongping (Independent non-executive Director), Dong Xuebo (Independent non-executive Director), Sun Zheng (Independent non-executive Director), Lu Xiongwen (Independent non-executive Director) and Jiang Jiang (Employee Representative Director).

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