SECURITIES AND EXCHANGE COMMISSION

 

Washington, D.C. 20549

 

FORM 6-K

 

Report of Foreign Private Issuer

 

Pursuant to Rule 13a-16 or 15d-16 of

 

the Securities Exchange Act of 1934

 

November 2, 2015

 

CHINA SOUTHERN AIRLINES COMPANY LIMITED

 

(Translation of registrant's name into English)

 

278 Jichang Road

 

Guangzhou, Guangdong 510405

 

People’s Republic of China

 

(Address of principal executive offices)

 

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

 

Form 20-F x Form 40-F ¨

 

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

 

Yes¨ Nox

 

(If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-________.)

 

   
 

 

China Southern Airlines Company Limited (the “Company”) published the following announcement on October 30, 2015 on the Hong Kong Stock Exchange’s website at: http://www.hkexnews.hk/listedco/listconews/SEHK/2015/1030/LTN20151030470.pdf, in relation to the Third Quarterly Report of 2015.

 

The announcement in English is included as exhibit to this Form 6-K.

 

   
 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

CHINA SOUTHERN AIRLINES COMPANY LIMITED

 

By: /s/ Xie Bing  
   
Name: Xie Bing  
   
Title: Company Secretary  
   
Date: November 2, 2015  

 

   

 



 

Exhibit 99.1

 

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.

 

 

THIRD QUARTERLY REPORT OF 2015

 

Summary
 
The 2015 third quarterly financial report of China Southern Airlines Company Limited (the “Company”, together with its subsidiaries, the "Group") was prepared in accordance with the PRC Accounting Standards and was unaudited.
 
This announcement is published pursuant to Rules 13.09 and 13.10B of The Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

 

 1 
 

 

1Important Notice

 

1.1The board of directors (the “Board”) and the supervisory committee of the Company and its directors (the “Directors”), supervisors and senior management warrant the truthfulness, accuracy and completeness of the content contained in this quarterly report, and the report does not contain inaccurate or misleading statements or material omission, and jointly and severally accept full legal responsibility.

 

1.2All Directors attended the meeting of the Board and considered the quarterly report.

 

1.3Mr. Si Xian Min, the responsible person of the Company, Mr. Tan Wan Geng, the responsible person of the finance work, and the responsible person of the accounting department, Mr. Xiao Li Xin (Chief Financial Officer of the Company) warrant the truthfulness, accuracy and completeness of the financial statements contained in this quarterly report.

 

1.4The third quarterly report of the Company is unaudited.

 

2Major accounting data and changes of shareholders of the Company

 

2.1Major accounting data

Unit: Million Currency: RMB

 

   30 September 2015   31 December 2014   Increase/ (decrease) (%) 
Total assets   183,862    189,697    (3.08)
Net assets attributable to the shareholders of the Listed Company   39,808    35,554    11.96 

 

   Nine months ended
30 September 2015
   Nine months ended 
30 September 2014
   Increase/ (decrease) (%) 
Net cash flow from operating activities   19,481    10,513    85.30 

 

   Nine months ended
30 September 2015
   Nine months ended 
30 September 2014
   Increase/ (decrease) (%) 
Operating revenue   85,328    81,827    4.28 
Net profit attributable to the shareholders of the Listed Company   4,656    1,256    270.7 
Net profit attributable to the shareholders of the Listed Company after  deducting non-recurring gains and losses   4,393    1,084    305.26 
Weighted average return on net assets (%)   12.33    3.63    8.70 
Basic earnings per share (Yuan/share)   0.47    0.13    261.54 
Diluted earnings per share (Yuan/share)   0.47    0.13    261.54 

 

 2 
 

 

After deducting non-recurring gains and losses

 

þApplicable ¨Not applicable

 

Unit: Million Currency: RMB

Items  Amount for the
reporting period
(from July to
September)
   Amount from the beginning of
the year to the end of the
reporting period (from
January to September)
   Notes 
Gains and losses on disposal of noncurrent assets   (10)   16      
Revert of bad debts of accounts receivable testing  separately   -    1      
Other non-operating income and expenses   188    417      
Influence of income tax   (23)   (87)     
Influence of minority interests (after tax)   (60)   (84)     
Total   95    263      

 

2.2Number of shareholders, particulars of the top ten shareholders and the top ten shareholders holding the Company’s tradable shares not subject to selling restrictions as at the end of the reporting period

 

 3 
 

 

Unit: Share

Total number of shareholders (shareholders) 359,163

Particulars of the top ten shareholders
               Pledged or frozen
shares
   
Name of the
shareholder (in full)
  Number of
shares held as
at the end of
the reporting
period
   Shareholding
(%)
   Number
of shares
subject to
trading
restrictions
   Status  Number
of
shares
  Capacity
China Southern Air Holding Company (“CSAHC”)   4,039,228,665    41.14    0   No  0  State-owned legal entity
HKSCC Nominees Limited   1,748,983,987    17.81    0   Not known  Not known  Overseas legal entity
Nan Lung Holding Limited (“Nan Lung”)   1,033,650,000    10.53    0   No  0  State-owned legal entity
China Securities Finance Corporation Limited   293,546,458    2.99    0   Not known  Not known  State-owned legal entity
Zhong Hang Xin Gang Guarantee Co., Ltd.    80,000,000    0.81    0   Not known  Not known  Domestic Non-state-owned legal entity
Central Huijin Investment Ltd.   64,510,900    0.66    0   Not known  Not known  State-owned legal entity
Hong Kong Securities Clearing Company Limited   49,854,835    0.51    0   Not known  Not known  Overseas legal entity
China National Aviation Corporation (Group) Limited   49,253,400    0.50    0   Not known  Not known  State-owned legal entity
China Galaxy Securities Co., Ltd.   31,997,315    0.33    0   Not known  Not known  Domestic Non-state-owned legal entity
Zhao Xiaodong   31,500,026    0.32    0   Not known  Not known  Domestic Individual

 

Particulars of the top ten shareholders holding

the Company’s tradable shares not subject to trading restrictions

      Type and number of shares
Name of the shareholder (in full)  Number of tradable
shares not subject to
selling restrictions
  Type of shares  Number of
shares
China Southern Air Holding Company   4,039,228,665   RMB-denominated Ordinary shares   4,039,228,665 
HKSCC Nominees Limited   1,748,983,987   Overseas listed foreign shares   1,748,983,987 
Nan Lung Holding Limited   1,033,650,000   Overseas listed foreign shares   1,033,650,000 
China Securities Finance Corporation Limited   293,546,458   RMB-denominated Ordinary shares   293,546,458 
Zhong Hang Xin Gang Guarantee Co., Ltd.
   80,000,000   RMB-denominated Ordinary shares   80,000,000 
Central Huijin Investment Ltd.   64,510,900   RMB-denominated Ordinary shares   64,510,900 
Hong Kong Securities Clearing Company Limited   49,854,835   RMB-denominated Ordinary shares   49,854,835 
China National Aviation Corporation (Group) Limited   49,253,400   RMB-denominated Ordinary shares   49,253,400 
China Galaxy Securities Co., Ltd.   31,997,315   RMB-denominated Ordinary shares   31,997,315 
Zhao Xiaodong   31,500,026   RMB-denominated Ordinary shares   31,500,026 

Explanation of the connected relationship or acting in concert relationship of the above shareholders

Nan Lung is incorporated in Hong Kong and a wholly-owned subsidiary of CSAHC. The Company is not aware of any other connected relationship between other shareholders. The H shares held by HKSCC Nominees Limited include the 31,120,000 H shares of the Company held by Yazhou Travel Investment Company Limited, a fourth level subsidiary of CSAHC incorporated in Hong Kong.

   
Explanation of the preference shareholders with restored voting rights and its number of shares Not applicable.

 

 4 
 

 

2.3Number of preference shareholders, particulars of the top ten preference shareholders and the top ten preference shareholders holding the Company’s tradable preference shares not subject to selling restrictions as at the end of the reporting period

 

¨Applicable  þNot applicable

 

§3Major Events

 

3.1Significant changes in major accounting items and financial indicators of the Company and the reasons for such changes

 

þApplicable  ¨Not applicable

 

3.1.1Significant changes in major items in consolidated balance sheet:

Unit: million Currency: RMB

Items  30 September
2015
   31 December
2014
   Increase/
(decrease)
(%)
   Main reason(s) for the change
Cash and bank balances   5,504    18,306    (69.93)  Mainly due to the repayment of borrowings in the reporting period.
Other receivables   3,267    2,474    32.05   Mainly due to the increase of payment for intention to purchase airplanes.
Taxes payable   621    436    42.43   Mainly due to the increase in the accrual of enterprise income tax which has not yet paid.
Other current liabilities   -    3,000    (100.00)  Mainly due to the repayment of short-term financing bill in the reporting period.
Long-term borrowings   26,317    42,066    (37.44)  Mainly due to the decrease in receipt of new borrowings and the repayment of borrowings in advance in the reporting period.
Undistributed profits   14,252    9,989    42.68   Mainly due to profit before taxation was achieved in the reporting period.

 

 5 
 

 

3.1.2Significant changes in major items in consolidated income statement:

Unit: million Currency: RMB

Items  Nine months
ended
30 September
2015
   Nine months
ended
30 September
2014
   Increase/
(decrease)
(%)
   Main reason(s) for the change
Business taxes and surcharges   208    158    31.65   Mainly due to the fact that the gross margin of airline service increased, which made the related VAT surcharges increased in the reporting period.
Financial expenses   5,789    2,387    142.52   Mainly due to the increase of foreign exchange loss due to the depreciation of RMB against US dollar in the reporting period.
Investment income   612    345    77.39   Mainly due to the increase in profit of investing aviation units in the reporting period.
Non-operating income   2,137    1,530    39.67   Mainly due to the increase of government grants in the reporting period.
Income tax expense   1,610    445    261.80   Mainly due to the increase of profit in the reporting period.

 

3.1.3 Significant changes in major items in consolidated cash flow statement:

Unit: million Currency: RMB

Items  Nine months
ended
30 September
2015
   Nine months
ended
30 September
2014
   Increase/
(decrease)
(%)
   Main reason(s) for the change
Payments of taxes and surcharges   2,692    1,811    48.65   Mainly due to the fact that the gross margin of airline service increased in the reporting period.
Cash received by subsidiaries from investment by minority interests   1,360    -    100.00   Mainly due to the investment to the subsidiaries of Henan Airline Company Ltd. and Jiangxi Airline Company Ltd. from minority interests
Cash received from borrowings   10,978    27,544    (60.14)  Mainly due to the decrease in receipt of new borrowings in the reporting period.
Other proceeds in cash from financing activities   324    -    100.00   Mainly due to the withdrawal of pledged bank deposits in the reporting period.

 

3.2Analysis and explanation of the development of major events and their impact and proposal as to the solutions

 

¨Applicable  þNot applicable

 

3.3Performance of the undertakings by the Company and its shareholders holding more than 5% equity interests of the Company

 

þApplicable  ¨Not applicable

 

Undertakings given by CSAHC, the controlling shareholder of the Company, during the reporting period or existing to the reporting period are as follow:

 

1.Upon completion of the Share Reform Plan, and subject to compliance with the relevant laws and regulations of the PRC, CSAHC will support the Company in respect of the formulation and implementation of a management equity incentive system. It has been strictly performed.

 

 6 
 

 

2.The Company and CSAHC entered into the “Property Compensation Agreement” on 22 May 1997, pursuant to which CSAHC agreed to compensate the Company for any losses or damages resulting from any challenge to or interference with the Company’s rights in the use of the land and buildings leased from CSAHC. It’s a long-term undertaking, and it has been strictly performed.

 

3.In 1995, CSAHC and the Company entered into a Separation Agreement with regard to the definition and allocation of the assets and liabilities between CSAHC and the Company on 25 March 1995 (the Agreement was amended on 22 May 1997). According to the Separation Agreement, CSAHC and the Company agreed to compensate the other party for the claims, liabilities and costs borne by such party as a result of the business, assets and liabilities held or inherited by CSAHC and the Company pursuant to the Separation Agreement. It’s a long-term undertaking, and it has been strictly performed.

 

4.In respect of the connected transaction entered into between the Company and CSAHC on 14 August 2007 in relation to the sale and purchase of various assets, the application for building title certificates for eight properties of Air Catering (with a total gross floor area of 8,013.99 square meters) and 11 properties of the Training Centre (with a total gross floor area of 13,948.25 square meters) have not been made for various reasons. In this regard, CSAHC has issued an undertaking letter, undertaking that: (1) the above title certificates should be obtained by CSAHC by the end of 2008; (2) all the costs and expenses arising from the application of the relevant title certificates would be borne by CSAHC; and (3) CSAHC would be liable for all the losses suffered by the Company as a result of the above two undertakings, including but not limited to: a) any production losses arising from the lack of title certificates, b) any other losses occasioned by the potential risk arising from the outstanding title certificates. The application for the title certificates mentioned above remained outstanding for various reasons. Therefore, CSAHC issued an undertaking letter, undertaking that it would attend to and complete the above-mentioned obligation before 31 December 2016 and would compensate the Company for any losses arising from the undertakings.

 

Due to such kind of change of ownership title requires compliance with the state and local laws and regulations, and a series of formalities in relation to the government approval is required to be attended to, CSAHC has been actively communicating with the government. However, as at the end of the reporting period, such undertakings are still in the course of being implemented. The performance period of this undertaking is up to 31 December 2016.

 

5.The relevant undertakings under the Financial Services Framework Agreement between the Company and Southern Airlines Group Finance Company Limited (the "Finance Company"): (1) Finance Company is a duly incorporated enterprise group finance company under the “Administrative Measures for Enterprise Group Finance Companies” and the other relevant rules and regulations, whose principal business is to provide finance management services, such as deposit and financing for the members of the Group; and the relevant capital flows are kept within the Group; (2) the operations of Finance Company are in compliance with the requirements of the relevant laws and regulations and it is running well, therefore the deposits placed with and loans from Finance Company of the Company are definitely secure. In future, Finance Company will continue to operate in strict compliance with the requirements of the relevant laws and regulations; (3) in respect of the Company’s deposits with and borrowings from Finance Company, the Company will continue to implement its internal procedures in accordance with the relevant laws and regulations and the Articles of Association, and CSAHC will not intervene in the relevant decision-making process of the Company; and (4) As the Company is independent from CSAHC in respect of its assets, businesses, personnel, finance and organizational structures, CSAHC will continue to fully respect the rights of the Company to manage its own operations, and will not intervene in the daily business operations of the Company. It’s a long-term undertaking, and it has been strictly performed.

 

 7 
 

 

6.On 8 July 2015, given the abnormal fluctuation of the stock market and based on its confidence in development prospects of the Company as well as the recognition of the values of the Company, CSAHC makes the following undertakings so as to facilitate the sustainable healthy development of the Company and safeguard the interests of the investors of the Company: (1) CSAHC will not reduce its shareholding in the Company during the abnormal fluctuation of the stock market; (2) CSAHC will take measures to increase its shareholding in the Company in line with market conditions in due course as permitted by relevant laws and regulations; and (3) CSAHC will continuously extend its support to the operational development of the Company, with an aim to assist the Company in improving operational results and maximizing investor returns of the Company. It’s a long-term undertaking, and it is being performed.

 

3.4Warning in respect of, and the reason for, the forecast of a probable loss in respect of the accumulated net profit from the beginning of the financial year to the end of the next reporting period or any significant changes as compared to the corresponding period of the previous year

 

¨Applicable  þNot applicable

 

  By order of the Board
  China Southern Airlines Company Limited
  Xie Bing
  Joint Company Secretary

 

Guangzhou, the People’s Republic of China

 

30 October 2015

 

As at the date of this notice, the Directors include Si Xian Min, Yuan Xin An and Yang Li Hua as non-executive Directors, Tan Wan Geng, Zhang Zi Fang and Li Shao Bin as executive Directors; and Ning Xiang Dong, Liu Chang Le, Tan Jin Song, Guo Wei and Jiao Shu Ge as independent nonexecutive Directors.

 

 8 
 

 

4.APPENDIX

 

4.1Financial Statements

 

Consolidated Balance Sheet

As at 30 September 2015

 

Prepared by: China Southern Airlines Company Limited

Unit: Million Currency: RMB Unaudited

 

Items  30 September 2015   31 December 2014 
Current assets:          
Cash and bank balances   5,504    18,306 
Settlement reserves fund          
Deposits with banks and other financial institutions          
Financial assets at fair value through profit or loss          
Derivative financial assets          
Notes receivable          
Accounts receivable   3,145    2,705 
Prepayments   1,022    1,104 
Premiums receivable          
Receivables from reinsurers          
Provisions for reinsurance contracts          
Interest receivable          
Dividends receivable   9    4 
Other receivables   3,267    2,474 
Purchase of financial assets resold          
Inventories   1,758    1,661 
Assets classified as held for sale          
Non-current assets due within one year          
Other current assets   1,307    1,586 
Total current assets   16,012    27,840 
Non-current assets:          
Entrusted loans and advances          
Available-for-sale financial assets   239    240 
Held-to-maturity investments          
Long-term receivables          
Long-term equity investments   3,505    2,937 
Investment properties   521    459 
Fixed assets   142,664    134,001 
Construction in progress   15,706    19,247 
Construction materials          
Fixed assets pending for disposal          
Bearer biological assets          
Oil and gas assets          
Intangible assets   2,646    2,544 
Development costs          
Goodwill          
Long-term prepaid expenses   657    733 
Deferred tax assets   1,157    1,045 
Other non-current assets   755    651 
Total non-current assets   167,850    161,857 
Total assets   183,862    189,697 

 

 9 
 

 

Current liabilities:          
Short-term borrowings   7,224    7,243 
Borrowings from central bank          
Deposits from customers and other banks          
Advances from banks and other financial institutions          
Financial liabilities at fair value through profit and loss          
Derivative financial liabilities          
Notes payable   200    11 
Accounts payable   12,052    11,211 
Sales in advance of carriage   6,141    6,101 
Financial assets sold under agreements repurchase          
Handling charges and commissions payable          
Salaries and wages payable   2,529    2,405 
Taxes payable   621    436 
Interest payable   340    471 
Dividends payable          
Other payables   4,588    5,320 
Amounts due to reinsurers          
Reserves on insurance contracts          
Securities trading agency fees          
Securities underwriting fees          
Liabilities classified as held for sale          
Non-current liabilities due within one year   16,028    17,888 
Other current liabilities        3,000 
Total current liabilities   49,723    54,086 
Non-current liabilities:          
Long-term borrowings   26,317    42,066 
Bonds payable          
Including: Preference share          
 Perpetual capital securities          
Long-term payables   50,720    43,919 
Long-term employee benefits payable          
Special items payable          
Estimated liabilities   12    25 
Deferred revenue   3,136    2,831 
Deferred tax liabilities   926    873 
Other non-current liabilities   2,054    1,623 
Total non-current liabilities   83,165    91,337 
Total liabilities   132,888    145,423 
Owners' equity          
Paid-in capital   9,818    9,818 
Other equity instruments          
Including: Preference share          
 Perpetual capital securities          
Capital surplus   14,388    14,388 
Less: Treasury shares          
Other comprehensive income   44    53 
Special reserve          
Surplus reserve   1,306    1,306 
Provision for ordinary risks          
Undistributed profits   14,252    9,989 
Total equity attributable to shareholders of the Company   39,808    35,554 
Minority interests   11,166    8,720 
Total owners' equity   50,974    44,274 
Total liabilities and owners' equity   183,862    189,697 

 

Legal Representative of the Company: Mr. Si Xian Min

Responsible person of the finance work : Mr. Tan Wan Geng

Responsible person of the accounting department: Mr. Xiao Li Xin

 

 10 
 

 

Balance Sheet of the Company

As at 30 September 2015

 

Prepared by: China Southern Airlines Company Limited

Unit: Million Currency: RMB Unaudited

 

Items  30 September 2015   31 December 2014 
Current assets:          
Cash and bank balances   2,092    10,755 
Financial assets at fair value through profit or loss          
Derivative financial assets          
Notes receivable          
Accounts receivable   2,743    2,232 
Prepayments   550    743 
Interest receivable          
Dividends receivable        4 
Other receivables   1,188    4,616 
Inventories   1,232    1,179 
Assets classified as held for sale          
Non-current assets due within one year          
Other current assets   1,271    1,434 
Total current assets   9,076    20,963 
Non-current assets:          
Available-for-sale financial assets   138    140 
Held-to-maturity investments          
Long-term receivables          
Long-term equity investments   8,145    6,255 
Investment properties   284    229 
Fixed assets   112,039    105,214 
Construction in progress   9,118    11,960 
Construction materials          
Fixed assets pending for disposal          
Bearer biological assets          
Oil and gas assets          
Intangible assets   1,437    1,491 
Development costs          
Goodwill          
Long-term prepaid expenses   316    342 
Deferred tax assets   1,116    1,004 
Other non-current assets   612    600 
Total non-current assets   133,205    127,235 
Total assets   142,281    148,198 
Current liabilities:          
Short-term borrowings   5,760    5,993 
Financial liabilities at fair value through profit and loss          
Derivative financial liabilities          
Notes payable          
Accounts payable   9,010    8,292 
Sales in advance of carriage   5,389    5,413 
Salaries and wages payable   1,837    1,814 
Taxes payable   135    303 
Interest payable   267    417 
Dividends payable          
Other payables   7,615    6,221 

 

 11 
 

 

Liabilities classified as held for sale          
Non-current liabilities due within one year   13,464    15,167 
Other current liabilities        3,000 
Total current liabilities   43,477    46,620 
Non-current liabilities:          
Long-term borrowings   20,428    30,844 
Bonds payable          
Including: Preference share          
 Perpetual capital securities          
Long-term payables   42,643    38,357 
Long-term employee benefits payable          
Special items payable          
Estimated liabilities   10    23 
Deferred revenue   2,615    2,441 
Deferred tax liabilities          
Other non-current liabilities   1,531    1,184 
Total non-current liabilities   67,227    72,849 
Total liabilities   110,704    119,469 
Owners' equity          
Paid-in capital   9,818    9,818 
Other equity instruments          
Including: Preference share          
 Perpetual capital securities          
Capital surplus   14,100    14,100 
Less: Treasury shares          
Other comprehensive income   21    28 
Special reserve          
Surplus reserve   1,306    1,306 
Undistributed profits   6,332    3,477 
Total owners' equity   31,577    28,729 
Total liabilities and owners' equity   142,281    148,198 

 

Legal Representative of the Company: Mr. Si Xian Min

Responsible person of the finance work : Mr. Tan Wan Geng

Responsible person of the accounting department: Mr. Xiao Li Xin

 

 12 
 

 

Consolidated Income Statement

For the nine months ended 30 September 2015

 

Prepared by: China Southern Airlines Company Limited

Unit: Million Currency: RMB Unaudited

 

Items  Amount for the
reporting
period (from
July to
September)
   Amount for
the
corresponding
period of last
year (from
July to
September)
   Nine
months
ended 30
September
2015
   Nine
months
ended 30
September
2014
 
1. Total revenue   32,001    31,615    85,328    81,827 
Including: Operating income   32,001    31,615    85,328    81,827 
Interest income                    
Premiums earned                    
Fees and commission income                    
2. Total operating costs   30,902    28,949    80,669    81,400 
Including: Cost of sales   23,940    25,714    67,503    71,160 
Interest expenses                    
Fees and commission expenses                    
Returned premium                    
Net compensation expenses                    
Net provision for insurance contract                    
Insurance policy dividend expenses                    
Reinsurance expenses                    
Business taxes and surcharges   77    56    208    158 
Selling and distribution expenses   1,528    2,119    5,100    5,797 
General and administrative expenses   761    670    2,060    1,892 
Financial expenses   4,595    390    5,789    2,387 
Assets impairment losses   1         9    6 
Add: Gains/(losses) arising from changes in fair value                    
Investment income/ (losses)   172    265    612    345 
Including: Share of profit of associates and joint ventures   172    255    600    331 
Exchange gains /(losses)                    
3. Operating profit/ (losses)   1,271    2,931    5,271    772 
Add: Non-operating income   800    418    2,137    1,530 
Including: Gains on disposal of non-current assets   1    76    45    107 
Less: Non-operating expenses   21    11    50    29 
Including: Losses on disposal of non-current assets   11    4    29    5 
4. Total profits/ (losses)   2,050    3,338    7,358    2,273 
Less: Income tax expenses/(credit)   399    742    1,610    445 
5. Net profit/ (losses)   1,651    2,596    5,748    1,828 
Net profit/(losses) attributable to shareholders of the Company   1,174    2,274    4,656    1,256 
Minority interests   477    322    1,092    572 
6. Net other comprehensive income/(losses) after tax   (26)   10    (13)   16 

 

 13 
 

 

Net other comprehensive income/(losses) after tax attributable to shareholders of the Company   (18)   10    (9)   15 
(1) Other comprehensive income/(losses) that will be reclassified to the profit and losses   (18)   10    (9)   15 
      Including: The attributable share of other comprehensive income/(losses) which will be reclassified to the profit and losses under equity method   (2)   3    (8)   6 
Gains/(losses) arising from changes in fair value of available-for-sale financial assets   (16)   7    (1)   9 
Net other comprehensive income/(losses) after tax attributable to minority interests   (8)        (4)   1 
7. Total comprehensive income   1,625    2,606    5,735    1,844 
Total comprehensive income attributable to shareholders of the Company   1,156    2,284    4,647    1,271 
Total comprehensive income attributable to minority interests   469    322    1,088    573 
8. Earnings per share:                    
(1) Basic earnings per share   0.12    0.23    0.47    0.13 
(2) Diluted earnings per share   0.12    0.23    0.47    0.13 

 

Legal Representative of the Company: Mr. Si Xian Min

Responsible person of the finance work : Mr. Tan Wan Geng

Responsible person of the accounting department: Mr. Xiao Li Xin

 

 14 
 

 

Income Statement of the Company

For the nine months ended 30 September 2015

 

Prepared by: China Southern Airlines Company Limited

Unit: Million Currency: RMB Unaudited

 

Items  Amount for
the reporting
period (from
July to
September)
   Amount for the
corresponding
period of last
year (from July
to September)
   Nine
months
ended 30
September
2015
   Nine
months
ended 30
September
2014
 
1. Revenue   23,068    24,122    61,224    61,952 
Less: Cost of sales   17,351    19,777    48,894    54,711 
Business taxes and surcharges   34    33    100    94 
Selling and distribution expenses   1,243    1,629    3,830    4,463 
General and administrative expenses   529    494    1,377    1,369 
Financial expenses   3,853    384    4,900    2,198 
Assets impairment losses             6    6 
Add: Gains/(losses) arising from changes in fair value                    
Investment income/ (losses)   171    257    582    327 
Including: Share of profit of associates and joint ventures   170    250    581    319 
2. Operating profit/ (losses)   229    2,062    2,699    (562)
Add: Non-operating income   451    376    1,453    1,190 
Including: Gains on disposal of non-current assets   1    76    36    105 
Less: Non-operating expenses   14    8    36    23 
Including: Losses on disposal of non-current assets   7    4    19    5 
3. Total profit/ ( losses)   666    2,430    4,116    605 
Less: Income tax expenses/(credit)   124    546    868    61 
4. Net profit /(losses)   542    1,884    3,248    544 
5. Net other comprehensive income/(losses) after tax   (11)   6    (7)   9 
(1) Other comprehensive income/(losses) that will be reclassified to the profit and losses   (11)   6    (7)   9 
  Including: The attributable share of other comprehensive income/(losses) which will be reclassified to the profit and losses under equity method        (2)   (5)   1 
Gains/(losses) arising from changes in fair value of available-for-sale financial assets   (11)   8    (2)   8 
6. Total comprehensive income/(losses)   531    1,890    3,241    553 
7. Earnings per share:                    
(1) Basic earnings per share                    
(2) Diluted earnings per share                    

 

Legal Representative of the Company: Mr. Si Xian Min

Responsible person of the finance work : Mr. Tan Wan Geng

Responsible person of the accounting department: Mr. Xiao Li Xin

 

 15 
 

 

Consolidated Cash Flow Statement

For the nine months ended 30 September 2015

 

Prepared by: China Southern Airlines Company Limited

Unit: Million Currency: RMB Unaudited

 

Items  Nine months
ended 30
September 2015
   Nine months
ended 30
September 2014
 
1. Cash flows from operating activities:          
Cash received from sales of goods or rendering of services   91,369    82,544 
Net increase in customer deposits and deposits in other banks          
Net increase in borrowings from central bank          
Net increase in advances from other financial institutions          
Cash received from original insurance policy premium          
Net cash received from reinsurance operations          
Net increase in policyholders’ deposits and investment          
Net increase in disposal of financial assets at fair value through profit or loss          
Interest, fees and commissions received in cash          
Net increase in advances from banks and other financial institutions          
Net increase in repurchase of business funds          
Refund of taxes and surcharges   383    580 
Cash received from other operating activities   1,710    1,624 
Sub-total of operating cash inflows from operating activities   93,462    84,748 
Cash paid for goods and services   56,893    59,047 
Net increase in customers deposits and advances          
Net increase in deposits with Central Bank and other banks          
Compensation paid pursuant to original insurance contract and settled in cash          
Interest, fees and commission paid in cash          
Insurance policy dividend paid by cash          
Cash paid to and on behalf of employees   13,202    12,162 
Payments of taxes and surcharges   2,692    1,811 
Cash paid relating to other operating activities   1,194    1,215 
Sub-total of cash outflows from operating activities   73,981    74,235 
Net cash flows from operating activities   19,481    10,513 
2. Cash flows from investment activities:          
Cash received from disposal of investments          
Investment income in cash   72    85 
Net cash recovered from disposals of fixed assets, intangible assets and other long-term assets   134    287 
Net cash received from disposal of subsidiaries and other operating units          
Cash received from other investing activities   162    204 
Sub-total of cash inflows from investing activities   368    576 
Amount paid in cash in relation to purchases of fixed assets, intangible assets and other long-term assets   5,344    5,135 
Investments paid in cash   38      
Cash paid by subsidiaries for investment in minority interests   69      
Net increase in pledged loans          
Net cash received from subsidiaries and other business units          
Cash paid relating to other investing activities          
Sub-total of cash outflows from investment activities   5,451    5,135 
Net cash flows from investing activities   (5,083)   (4,559)

 

 16 
 

 

3. Cash flows from financing activities:          
Proceeds received in cash from investments   1,360      
Including: Cash received by subsidiaries from investment by minority interests   1,360      
Cash received from borrowings   10,978    27,544 
Proceeds received in cash from bonds issuance        6,000 
Other proceeds in cash from financing activities   324      
Sub-total of cash inflows from financing activities   12,662    33,544 
Cash repayments of borrowings   37,226    31,746 
Cash payments for distribution of dividends, profits or payments of interest expense   2,344    2,100 
Including: Dividend and profit paid by subsidiaries to minority interests   2    2 
Cash paid relating to other financing activities        1,060 
Sub-total of cash outflows from financing activities   39,570    34,906 
Net cash flows from financing activities   (26,908)   (1,362)
4. Effect of changes in exchange rate on cash and cash equivalents   27    2 
5. Net increase in cash and cash equivalents   (12,483)   4,594 
Add: Balance of cash and cash equivalents at the beginning of the period   17,868    12,170 
6. Balance of cash and cash equivalents at the end of the period   5,385    16,764 

 

Legal Representative of the Company: Mr. Si Xian Min

Responsible person of the finance work : Mr. Tan Wan Geng

Responsible person of the accounting department: Mr. Xiao Li Xin

 

 17 
 

 

Cash Flow Statement of the Company

For the nine months ended 30 September 2015

 

Prepared by: China Southern Airlines Company Limited

Unit: Million Currency: RMB Unaudited

 

Items  Nine months
ended 30
September 2015
   Nine months
ended 30
September 2014
 
1. Cash flows from operating activities:          
Cash received from sales of goods or rendering of services   63,272    63,505 
Refund of taxes and surcharges   319    580 
Cash received from other operating activities   1,619    1,059 
Sub-total of operating cash inflows from operating activities   65,210    65,144 
Cash paid for goods and services   36,738    46,431 
Cash paid to and on behalf of employees   9,892    9,178 
Payments of taxes and surcharges   1,239    1,037 
Cash paid relating to other operating activities   725    834 
Sub-total of cash outflows from operating activities   48,594    57,480 
Net cash flows from operating activities   16,616    7,664 
2. Cash flows from investment activities:          
Cash received from disposal of investments          
Investment income in cash   58    104 
Net cash recovered from disposals of fixed assets, intangible assets and other long-term assets   3,089    283 
Net cash received from disposal of subsidiaries and other operating units          
Cash received from other investing activities   77    103 
Sub-total of cash inflows from investing activities   3,224    490 
Amount paid in cash in relation to purchases of fixed assets, intangible assets and other long-term assets   3,284    2,511 
Investments paid in cash   1,366      
Cash paid by subsidiaries for investment in minority interests        5 
Net cash received from subsidiaries and other business units          
Cash paid relating to other investing activities          
Sub-total of cash outflows from investment activities   4,650    2,516 
Net cash flows from investing activities   (1,426)   (2,026)
3. Cash flows from financing activities:          
Proceeds received in cash from investments          
Cash received from borrowings   7,570    22,713 
Other proceeds in cash from financing activities        6,000 
Sub-total of cash inflows from financing activities   7,570    28,713 
Cash repayments of borrowings   29,448    28,364 
Cash payments for distribution of dividends, profits or payments of interest expense   1,997    1,912 
Cash paid relating to other financing activities          
Sub-total of cash outflows from financing activities   31,445    30,276 
Net cash flows from financing activities   (23,875)   (1,563)
4. Effect of changes in exchange rate on cash and cash equivalents   14    5 
5. Net increase in cash and cash equivalents   (8,671)   4,080 
Add: Balance of cash and cash equivalents at the beginning of the period   10,662    5,468 
6. Balance of cash and cash equivalents at the end of the period   1,991    9,548 

 

Legal Representative of the Company: Mr. Si Xian Min

Responsible person of the finance work : Mr. Tan Wan Geng

Responsible person of the accounting department: Mr. Xiao Li Xin

 

4.2Audited Report

 

¨Applicable  þNot applicable

 

 18 

 

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