China Southern Airlines Company Limited provided earnings guidance for the year ended December 31, 2015. For the year, the company preliminarily estimated the annual results of 2015 in accordance with the "China Accounting Standards for Business Enterprises" and the net profits attributable to equity holders of the company for year 2015 is expected to increase 110% to 130% as compared with the corresponding period last year. The company reported net profit attributable to equity holders of the company of RMB 1.773 billion or RMB 0.18 per share for the same period a year ago.

The reasons for estimated profit increase in the results: During 2015, the demand of Chinese civil aviation transportation market showed a strong trend, the Company optimized resource allocation, enhanced the deployed capacity and seized the market opportunities, so that the operating revenue of the Company recorded an increase as compared with the corresponding period in the previous year. The preliminary results of strategic transformation of the Company were achieved with Guangzhou hub has been gradually improved, and the international route has become a new profit growth point which was driven by the substantial growth of outbound tourism. The comprehensive budget management of the Company highlighted its role with the continuous improvement in the Company's cost control capability, so that the company's cost decreased as compared with the corresponding period in the previous year.

Benefit from the fluctuation of the international crude oil price at a lower level, the company's cost of jet fuel price has been substantially decreased as compared with the corresponding period in the previous year. The Company took the initiative to deal with the sharp depreciation of RMB and substantially reduced debt ratio denominated in USD, therefore reduced the exchange losses from the depreciation of RMB.