Shandong Airlines Co., Ltd. Summary of Annual Report 2009
1
Shandong Airlines Co., Ltd.
Summary of Annual Report 2009
§1. Important Notice
1.1 Board of Directors, Supervisory Committee, all directors, supervisors and senior executives of
Shandong Airlines Co., Ltd. (hereinafter referred to as the Company) hereby confirm that there are
no any fictitious statements, misleading statements, or important omissions carried in this report,
and shall take all responsibilities, individual and/or joint, for the reality, accuracy and completion of
the whole contents.
The summary of Annual Report 2009 is abstracted from the Annual Report; and full text of the
Annual Report is published on Internet website http://www.cninfo.com.cn in the mean time. The
investors are suggested to read the full text of semi-annual report to get more details.
1.2 Director Mr.Wang Mingyuan was absent from the Board meeting and authorized Director
Mr.Feng Gang to vote on his behalf.
1.3 Reanda Certified Public Accountants issued the standard unqualified Auditors’ Report for the
Company.
1.4 Chairman of the Board Mr. Zhang Xingfu, General Manager Mr. Zeng Guoqiang, and Chief
Accountant Mr. Xu Guojian of the Company hereby confirm that the Financial Report of the Annual
Report is true and complete.
§2. Company Profile
2.1 Basic information
Short form of the stock Shanhang B
Stock code 200152
Listed stock exchange Shenzhen Stock Exchange
Registered address Yaoqiang International Airport, Jinan, Shandong
Post code of registered address 250107
Office address SDA Building, No. 5746, Er Huan East Road, Jinan, Shandong
Post code of office address 250014
Internet web site of the
Company http://www.shandongair.com.cn
E-mail zqb@shandongair.com.cn
2.2 Contact person and method
Secretary of the Board of Directors Authorized Representative in Charge
of Securities Affairs
Name Dong Qiantang Fan Peng
Contact address 12/F, SDA Building, No. 5746, Er Huan
East Road, Jinan, Shandong
19/F, SDA Building, No. 5746, Er Huan
East Road, Jinan, Shandong
Telephone 0531－85698229 0531－85698678
Fax 0531－85698679 0531－85698679Shandong Airlines Co., Ltd. Summary of Annual Report 2009
2
E-mail dongqt@shandongair.com.cn fanp@shandongair.com.cn
§3. Summary of Accounting Data and Financial Indexes
3.1 Major accounting data
Unit: RMB
2009 2008
Increase/decrease in this
year compared with that
of last year (%)
2007
Operating income 5,366,113,363.68 5,049,391,116.47 6.27% 4,630,130,538.19
Total profit 403,361,305.82 108,260,827.56 272.58% 98,768,111.17
Net profit
attributable to
shareholders of the
listed company
302,282,325.68 80,981,442.68 273.27% 68,171,958.24
Net profit
attributable to
shareholders of the
listed company after
deducting
non-recurring gains
and losses
203,597,306.19 92,440,296.87 120.25% 53,689,781.57
Net cash flow arising
from operating
activities
1,317,347,150.42 1,059,833,106.56 24.30% 734,571,420.98
At the end of 2009 At the end of 2008
Increase/decrease at the
end of this year compared
with that at the end of last
year (%)
At the end of 2007
Total assets 8,096,403,730.75 7,844,104,901.47 3.22% 7,082,444,002.92
Owners’ equity
attributable to
shareholders of the
listed company
852,294,621.98 550,012,296.30 54.96% 469,030,853.62
Share capital 400,000,000.00 400,000,000.00 0.00% 400,000,000.00
3.2 Major financial indexes
Unit: RMB
2009 2008
Increase/decrease this
year compared with
that last year (%)
2007
Basic earnings per share
(RMB/Share) 0.76 0.20 280.00% 0.17
Diluted earnings per share
(RMB/Share) 0.76 0.20 280.00% 0.17
Basic earnings per share
after deducting
0.51 0.23 121.74% 0.13Shandong Airlines Co., Ltd. Summary of Annual Report 2009
3
non-recurring gains and
losses (RMB/Share)
Weighted average return on
equity (%) 43.11% 15.89% 27.22% 15.67%
Weighted average return on
equity after deducting
non-recurring gains and
losses (%)
29.04% 18.14% 10.90% 12.34%
Net cash flow arising from
operating activities per
share (RMB/Share)
3.29 2.65 24.15% 1.84
At the end of 2009 At the end of 2008
Increase/decrease at
the end of this year
compared with that at
the end of last year
(%)
At the end of 2007
Net asset per share attributable
to shareholders of listed
company (RMB/Share)
2.13 1.38 54.35% 1.17
Items of non-recurring gains and losses
√Applicable □Inapplicable
Unit: RMB
Items of non-recurring gains and losses Amount
Notes
(If applicable)
Gains and losses from the disposal of non-current asset 2,758,500.92
Losses caused by the
disposal of fixed assets,
transferring of contract of
construction in progress,
and bankruptcy of CAPT
Driving School.
Governmental subsidy calculated into current gains and
losses, while closely related with the business of the
Company, excluding the fixed-amount or fixed-proportion
governmental subsidy according to the unified national
standard
135,213,761.47
Due to the returns of
Construction Fund of Civil
Aviation and subsidiaries
for flight courses
Losses/gains from changes of fair values occurred in
holding transaction financial assets and transaction financial
liabilities, and investment income obtaining from the
disposal of transaction financial assets and transaction
financial liabilities and financial assets available for sales,
excluded effective hedging business relevant with normal
operations of the Company
-10,020,739.69
Changes in delivery
income of interest rate
swaps and fair values.
Other non-operating income and expenditure except for the
aforementioned items 3,628,053.31
Influenced amount of income tax -32,894,894.00
Influenced amount of minority shareholders’ equity 337.48
Total 98,685,019.49 -Shandong Airlines Co., Ltd. Summary of Annual Report 2009
4
3.3 Differences between CAS and IAS
□Applicable √Inapplicable
§4. Changes in Share Capital and Particulars about Shareholders
4.1 Statement of change in share capital
Unit: Share
Before the change Increase/Decrease of this time (+, -) After the change
Amount Proportion
New shares
issued
Bonus
shares
Capitalizati
on of
public
reserve
Others Subtotal Amount Proportion
I. Unlisted shares 260,000,000 65.00% 260,000,000 65.00%
1. Sponsor’s shares 168,780,100 42.20% 168,780,100 42.20%
Including:
State-owned shares 168,581,100 42.15% 168,581,100 42.15%
Domestic legal
person’s shares 199,000 0.05% 199,000 0.05%
Foreign legal
person’s shares
Others
2. Raised legal
person’s shares
3. Inner employees’
shares
4. Preference shares
or other 91,219,900 22.80% 91,219,900 22.80%
II. Listed shares 140,000,000 35.00% 140,000,000 35.00%
1. RMB ordinary
shares
2. Domestically listed
foreign shares 140,000,000 35.00% 140,000,000 35.00%
3. Overseas listed
foreign shares
4. Other
III. Total shares 400,000,000 100.00% 400,000,000 100.00%
4.2 Statement of shares held by the top ten shareholders and the top ten shareholders of circulation
share
Unit: Share
Total shareholders at the
end of report 20,162
Particulars about shares held by the top ten shareholders
Full name of Shareholders Nature of
shareholders Proportion Shares held Non-circulating
shares
Number of share
pledged/
frozen
SHANDONG AVIATION
GROUP
State-owned
legal person 42.00% 168,004,000 168,004,000 0
AIR CHINA LIMITED State-owned 22.80% 91,200,000 91,200,000 0Shandong Airlines Co., Ltd. Summary of Annual Report 2009
5
legal person
CHEN TIAN MING Foreign
natural person 0.44% 1,769,072 0 0
CHEN CHUN PENG Foreign
natural person 0.36% 1,430,000 0 0
CHEN JING JIAN Foreign
natural person 0.33% 1,304,200 0 0
WU HAO YUAN Foreign
natural person 0.27% 1,062,700 0 0
LIU LI YA Foreign
natural person 0.23% 904,217 0 0
JOHN POSS Foreign
natural person 0.18% 700,000 0 0
DENG HONG WEI Foreign
natural person 0.16% 650,609 0 0
FENG WU CHU Foreign
natural person 0.16% 631,700 0 0
Particulars about shares held by the top ten shareholders of circulation share
Full name of the shareholders Circulating shares held Type of shares
CHEN TIAN MING 1,769,072 Domestically listed foreign share
CHEN CHUN PENG 1,430,000 Domestically listed foreign share
CHEN JING JIAN 1,304,200 Domestically listed foreign share
WU HAO YUAN 1,062,700 Domestically listed foreign share
LIU LI YA 904,217 Domestically listed foreign share
JOHN POSS 700,000 Domestically listed foreign share
DENG HONG WEI 650,609 Domestically listed foreign share
FENG WU CHU 631,700 Domestically listed foreign share
XU ZHAO HUAN 623,400 Domestically listed foreign share
CHEN ZI XIANG 610,700 Domestically listed foreign share
Explanation on associated
relationship or accordant
action among the aforesaid
shareholders
1. Shandong Aviation Group is the first largest shareholder of the Company, who holds
the shares of the Company on behalf of the State with unlisted shares.
2. Air China Limited is the second largest shareholder of the Company, who holds the
shares of the Company on behalf of the State with unlisted shares; Air China is the first
largest shareholder of SDA and the actual controller of the Company.
3. Among the above the top ten shareholders, Air China, shareholders of state-owned
legal person’s share, is the first largest shareholder of the SDA, and there exists no
associated relationship between SDA and Air China and the other shareholders, and
they don’t belong to the consistent actionist regulated by the Management Regulation of
Information Disclosure on Change of Shareholding for Listed Companies with the other
shareholders. The Company is not aware of their associated relationship among the
other shareholders of circulation share, whether belongs to the consistent actionist
regulated by the Management Regulation of Information Disclosure on Change of
Shareholding for Listed Companies.
4.3 Particulars about controlling shareholders and actual controller of the Company
4.3.1 Particulars about change in controlling shareholders and actual controller of the Company
□Applicable √Inapplicable
4.3.2 Introduction of especial situation for controlling shareholder and actual controllerShandong Airlines Co., Ltd. Summary of Annual Report 2009
6
Actual controller of the Company: Air China Limited.
Place: 9F/Sky Mansion, No.28 Buliding Tianzhu Road, Block A of Tianzhu Airport Industrial Zone,
Shunyi District, Beijing.
Legal Representative: Kong Dong
Registered capital: RMB 12.251 billion
Business scope: It was engaged in the domestic and overseas transportation business such as periodic
and aperiodic aviation passenger, cargo, letter and baggage; domestic and overseas official flight
business; aeroplane management business; repairing of aerostat; business agent among air
companies; ground service and air courier services related with the main operations (excluding letter
and articles with the nature of letters); tax-free commodities in airplane.
Main shareholders: China National Aviation Group Co., Ltd., which accounted for 40.4% in total
shares;
Cathay Pacific Airways Ltd., which accounted for 18.1% in total shares.
4. 3. 3 Property right and controlling relationships between the actual controller of the Company
and the Company is as follows:
100%
40.4%
49.406%
22.8%
42%
§5. Particulars about Directors, Supervisors, Senior Executives
5.1 Particulars about changes in shares held by directors, supervisors and senior executives and their
remunerations
Air China Limited
Shandong Aviation Group
Shandong Airlines Co., Ltd.
China National Aviation Group Co., Ltd.
State-owned Assets Supervision & Administration Commission of State CouncilShandong Airlines Co., Ltd. Summary of Annual Report 2009
7
Name Title Sex Birthday
Begin
date of
office
term
End date of
office term
Shares
held at
year-begi
n
Shares
held at
year -end
Reason for
change
Total
remunera
tion
drawn
from the
Company
in the
report
period
(RMB’00
00)(befor
e tax)
Drawing
remuner
ation
from
sharehol
ders’
units or
other
related
units or
not
Zhang
Xingfu Chairman Male Apr. 1955 June 26,
2009
June 25,
2010 0 0 0.00 Yes
Feng Gang Vice
Chairman Male Sep. 1963 June 26,
2009
June 25,
2010 0 0 0.00 Yes
Zeng
Guoqiang
Director,
General
Manger
Male Oct. 1953 June 26,
2009
June 25,
2010 0 0 65.65 No
Su
Zhongmin
Director,
Standing
Deputy
General
Manager
Male March 1954 June 26,
2009
June 25,
2010 0 0 56.41 No
Xiao Feng
Director
Deputy
General
Manager,
Chief
Accountant
Male Oct. 1968 June 26,
2009
March 24,
2010 0 0 46.83 No
Wang
Mingyuan Director Male Sep. 1965 June 26,
2009
June 25,
2010 0 0 0.00 Yes
Kou
Zunxian Director Male Aug. 1955 June 26,
2009
June 25,
2010 0 0 0.00 Yes
Wang
Jieming Director Fem
ale June 1958 June 26,
2009
June 25,
2010 0 0 0.00 Yes
Wei Jincai Independent
Director Male Feb. 1950 June 26,
2009
June 25,
2010 0 0 5.90 No
Li Chun
Independent
Director Male March 1957
June 26,
2009
June 25,
2010 0 0 2.98 No
Qu Wenzhou
Independent
Director Male June 1972
June 26,
2009
June 25,
2010 0 0 2.98 No
Wang Fuzhu
Chairman of
the
Supervisory
Committee
Male June 1953 June 26,
2009
June 25,
2010 0 0 0.00 Yes
Xue Ruitao Supervisor Male March 1961
June 26,
2009
June 25,
2010 0 0 0.00 Yes
Zhang Kai Supervisor Male May 1965
June 26,
2009
June 25,
2010 0 0 0.00 YesShandong Airlines Co., Ltd. Summary of Annual Report 2009
8
Miao Liubin
Employee
Supervisor,
GM of
Flight
Department
Male Feb. 1971
June 26,
2009
June 25,
2010 0 0 30.79 No
Zhou
Qiaoyan
Employee
Supervisor,
Deputy Head
of Cabin
Service
Department
Fem
ale Jan. 1975 June 26,
2009
June 25,
2010 0 0 19.27 No
Yu Haitian
Deputy
General
Manager
Male Sep. 1969 June 26,
2009
June 25,
2010 0 0 54.82 No
Song Yuxia
Deputy
General
Manager
Fem
ale Jan. 1956 June 26,
2009
June 25,
2010 0 0 56.97 No
Li Qing’en
Deputy
General
Manager
Male Aug. 1955 June 26,
2009
June 25,
2010 0 0 53.70 No
Qiu Feng
Deputy
General
Manager
Male Jan. 1967
June 26,
2009
June 25,
2010 0 0 33.28 No
Zhang
Qingshe Chief Pilot Male Oct. 1958 June 26,
2009
June 25,
2010 0 0 54.85 No
Xiong
Jianbo
General
Engineer
Male Jan. 1965
Dec. 1,
2009
June 25,
2010 0 0 31.50 No
Dong
Qiantang
Secretary of
the Board
Male Jan. 1962
June 26,
2009
June 25,
2010 0 0 23.21 No
Total - - - - - 0 0 - 539.14 -
Stocks option of the directors, supervisors and senior executives bestowed in the report period
□Applicable √Inapplicable
5.2 Presences at the meetings of the Board by the directors
Name of the
directors Positions
Due
Presence
(times)
Presence in
person
(times)
Attending
the meeting
in way of
communicat
ion
(times)
Entrusted
presence
Absence
(times)
Whether
attending the
meeting in
person in
successive
two times or
notShandong Airlines Co., Ltd. Summary of Annual Report 2009
9
Zhang Xingfu Chairman 8 3 4 0 1 No
Feng Gang Vice Chairman 8 2 5 0 1 No
Zeng Guoqiang Director, General
Manger 8 3 5 0 0 No
Su Zhongmin
Director,
Standing Deputy
General Manager
8 3 5 0 0 No
Xiao Feng
Director, Deputy
General
Manager, Chief
Accountant
8 3 5 0 0 No
Wang Mingyuan Director 8 2 5 1 0 No
Kou Zunxian Director 8 3 5 0 0 No
Wang Jieming Director 8 2 4 2 0 No
Wei Jincai Independent
Director 4 1 3 0 0 No
Li Chun
Independent
Director 4 1 3 0 0 No
Qu Wenzhou
Independent
Director 4 1 3 0 0 No
Explanations on not attending the meeting of the Board in person in successive two times
Meetings of the Board held
during the year (times) 8
Of which: site meetings (times) 3
Meetings held in way of
communication (times) 5
Meetings held in way of both site
and communication (times) 0
§6. Report of the Board of Directors
6.1 Discussion and analysis by the management team
Confronted with severe impact posed by international financial crisis, the Company thoroughly
applied the Scientific Development Thought and implemented Crisis-Passing strategy actively under
the right leadership of Shandong Provincial Party Committee, Shandong Provincial Government, and
Civil Aviation Administration of China. The Company scientifically and practically adapted itself to
the changing environment to turn crisis into opportunities; made coordinated arrangement for works
involving reform, innovation and development; achieved the stable development of safe production;
realized historic breakthrough in profit; had prominent improvement in service, positive change in
overall management levels, a harmonious and stable staff; and successfully realized safe flights for
15 years.
1. Safety: The Company kept zero human error-caused flying accident for two consecutive years and
zero record of ground accident. The safety management level and safety control ability were
reinforced further and the general security trend remained steady.
2. Transportation index: In 2009, the Company totally had 151,000 hours for safety flights and
87,000 sorties, respectively 18.5% and 13.9% up compared to those of the same period of last year;
overall transportation amounting to 971 million ton*kilometer was accomplished by the Company,
21.3% up compared to those of the same period of last year; and totally 7,817,000 passengers wereShandong Airlines Co., Ltd. Summary of Annual Report 2009
10
safely conveyed, 19.2% up compared to those of the same period of last year.
3. Benefit: In 2009, the operating income realized by the Company totaled RMB 5.302 billion，6.34
% up compared to that of the same period of the last year; total profit amounted to RMB403 million ,
increasing by RMB295 million compared to that of the same period of last year; ratio of debts to
assets was reduces to below 90%. The Company received some promotions in its capabilities of
profit-making, development and debts repayment.
4. Service:
The punctuality rate for the scheduled flight in the whole year of 2009 was 83.4%, ranking second
among the national civil aviation; only 0.82 time complaints were received from every 10,000
passengers, 0.48 time/10,000 passenger down compared to that of the same period of last year; the
satisfaction rate from passengers was 89.82%, 0.62 percentage points up compared to that of the
same period of last year; and the dilapidation error rate for baggage was 0.0238%, 0.0044% down
compared to that of the same period of the last year. As the flight service partner for the Eleventh
National Games, the Company successfully finished the service and assurance task during the session
and was thus rewarded as “Advanced Collective for Preparing the Eleventh National Games” and
“Award for Special Contributions for the Eleventh National Games” by Provincial Party Committee
of Shandong, Shandong Provincial Government, and Organization Committee for National Games.
6.2 Statement of main operations classified according to industries or products
Unit: RMB’0000
Main operations classified according to industries
Classified according to
industries or products
Income from
operations
Cost of
operations
Gross profit
ratio
(%)
Increase/decre
ase in income
from
operations
over the last
year
(%)
Increase/decre
ase in cost of
operations
over the last
year
(%)
Increase/decrea
se in gross
profit ratio
over the last
year
(%)
Aviation transportation
industry 527,436.24 408,589.56 22.53% 6.49% -0.38% 5.34%
Logistics
transportation services 701.53 191.04 72.77% 16.52% 45.48% -5.42%
Hotel and food
services 2,298.41 1,917.90 16.56% 1.98% 22.83% -14.17%
Main operations classified according to products
Aviation transportation
industry 527,436.24 408,589.56 22.53% 6.49% -0.38% 5.34%
Logistics
transportation services 701.53 191.04 72.77% 16.52% 45.48% -5.42%
Hotel and food
services 2,298.41 1,917.90 16.56% 1.98% 22.83% -14.17%
6.3 Particulars about main operations classified according to areas
Unit: RMB’0000
Areas Income from operations
Increase/decrease in income
from operations over last
year (%)
Domestic 515,990.34 7.39%Shandong Airlines Co., Ltd. Summary of Annual Report 2009
11
International 14,445.83 -18.33%
6.4 Items measured by adopting fair value
√Applicable □Inapplicable
Unit: RMB
Item Amount at
period-begin
Gains/losses
from changes of
fair value in the
report period
Changes of
accumulative
fair value
reckoned in
equities
Devaluation
withdrawn in the
report period
Amount at
report-end
Financial assets
Of which: 1. Financial
assets measured by fair
value, and its changes are
reckoned in current
gains/losses
23,460,812.11 -12,118,965.63 11,341,846.48
Including: Derivative
financial asset
2. Financial assets available
for sales
Subtotal of financial assets 23,460,812.11 -12,118,965.63 11,341,846.48
Financial liabilities
Investment property
Productive biological assets
Others
Total 23,460,812.11 -12,118,965.63 11,341,846.48
6.5 Application of the raised proceeds
□Applicable √Inapplicable
Particulars about the changed projects
□Applicable √Inapplicable
6.6 Application of the proceeds not raised through shares offering
□Applicable √Inapplicable
6.7 Explanation of the Board of Directors on changes to the accounting policy and accounting
estimates, or reasons of modification of material accounting errors and the influences
√Applicable □Inapplicable
With the changes on recent market condition and pilot mobility, the Company re-examined the
beneficial years in accordance with the service years and resignations of the pilots. The 2010 First
Extraordinary Meeting of the 4th Board of the Company examined and approved the Proposal on
Changes to Accounting Estimation of Shandong Airlines Co., Ltd., which decided to adopt new
accounting estimations since Oct. 1, 2009, and change the amortization periods of training expense
on pilots from 20 years to 10 year. Thus, the changes of accounting estimation made the current net
profit decrease amounting to RMB 24,159,590.99.
The influences on net profit of 2009 by the aforementioned as follows: (Unit: RMB)Shandong Airlines Co., Ltd. Summary of Annual Report 2009
12
2009
Adjustment
Item Amount
Changes of the amortization periods of Operating cost 32,212,787.99
training expense on pilots Income tax expense -8,053,197.00
Total 24,159,590.99
6.8 Explanation of the Board of Directors on the “Qualified Opinion” made by the CPAs
□Applicable √Inapplicable
6.9 The preplan of the profit distribution and capitalization of capital public reserve of the Board of
Directors
Audited by Reanda Certified Public Accountants, the Company realized net profit RMB300.8534
million in 2009. The undistributed profits of the beginning of the year was 33,9647 million,And the
profit available for distribution of parent company till Dec. 31, 2009 was RMB334.8181 million.
In order to return the shareholder’s supports for many years, and meanwhile, consider the long-term
development of the Company, the Board plans to submit the 2009 profit distribution plan to the
shareholders’ general meeting, as follows:
1. Withdrawal of current statutory surplus reserve amounts to RMB30.0853 million.
2. Plans to distribute cash bonus amounting to RMB80 million, taking the total shares 400,000,000
of the Company ended as Dec. 31, 2009 as the base, the cash bonus for each 10 share is RMB2(Tax
included).
Particulars about the cash bonus of the Company in previous three years
Unit: RMB
Year for bonus
distribution
Amount of cash bonus
(tax included)
Net profit attributable
to shareholders of
listed company in
consolidated statement
of bonus year
Ratio of net profit
attributable to
shareholders of listed
company in
consolidated statement
Distributable profit
during the year
2008 0.00 80,981,442.68 0.00% 36,471,405.69
2007 0.00 68,171,958.24 0.00% 0.00
2006 0.00 10,025,635.45 0.00% 0.00
The proportion of accumulative cash bonus during recent three
years in latest annual average net profit (%) 0.00%
The Company didn’t put forward cash profit distribution preplan though the Company achieved the
profit in the report period
□Applicable √Inapplicable
§7. Significant Events
7.1 Purchase of assets
□Applicable √InapplicableShandong Airlines Co., Ltd. Summary of Annual Report 2009
13
7.2 Sales of assets
□Applicable √Inapplicable
Influences on the business continuity and stability of management of the Company by the matters
7.1 and 7.2 concerned
7.3 Significant guarantees
□Applicable √Inapplicable
7.4 Significant related transaction
7.4.1 Related transaction connected to routine operations
√Applicable □Inapplicable
Unit: RMB’0000
Sell products and supply labor force to
the related parties
Purchase products and accept labor
force from related parties
Related parties
Transaction amount
Proportion in the
amount of the same
transaction
Transaction amount
Proportion in the
amount of the same
transaction
Taikoo (Shandong) Aircraft
Engineering Co., Ltd 0.00 0.00% 8,334.70 22.19%
Shandong Aviation Group 0.00 0.00% 1,129.46 23.70%
Qingdao Feisheng International
Aero Technical Training Co., Ltd. 0.00 0.00% 409.74 4.64%
Shandong International Aero
Training Co., Ltd. 0.00 0.00% 792.79 8.98%
Shandong Xiangyu Aero
Technical Services Co., Ltd. 0.00 0.00% 1,935.00 5.15%
Air China Limited 1,020.00 79.01% 0.00 0.00%
Total 1,020.00 79.01% 12,601.69 64.66%
Of which: In the report period, the related transaction amount the listed companies sold products or
supplied labor forced for the controlling shareholders and its subsidiaries was RMB 652.63 million.
7.4.2 Related current credits and liabilities
□Applicable √Inapplicable
7.4.3 Occupation and its progress of paying off on non-operational funds by largest shareholder and
its affiliated enterprises
□Applicable √Inapplicable
7.5 Entrusted assets management
□Applicable √Inapplicable
7.6 Implementation of commitments
□Applicable √Inapplicable
Commitments made by the listed company and its directors, supervisors, senior executives, the
shareholders with holding above 5% shares and its actual controller in the report period or lasting
until the report period.Shandong Airlines Co., Ltd. Summary of Annual Report 2009
14
□Applicable √Inapplicable
7.7 Significant lawsuit and arbitrations
□ Applicable √Inapplicable
7.8 Other significant events and analysis on their influences and solutions
7.8.1 Particulars about securities investment
□Applicable √Inapplicable
7.8.2 Equity of other listed companies held
□Applicable √Inapplicable
7.8.3 Equities of companies to be listed and unlisted financial enterprises held
□Applicable √Inapplicable
7.8.4 Particulars about the purchases and sales on equities of other listed company
□Applicable √Inapplicable
7.8.5 Other consolidated incomes
Unit: RMB
Items Amount occurred in the report
period
Amount occurred in last report
period
1. Gains/losses from financial assets available for
sales
Less: Income tax influences from financial assets
available for sales
Net amount reckoned into other consolidated
income in previous period but transferred into
gains/losses in current period
Subtotal
2. Shares in the other consolidated income of the
investee calculated based on equity method
Less: Income tax influences of shares in the other
consolidated income of the investee calculated
based on equity method
Net amount reckoned into other consolidated
income in previous period but transferred into
gains/losses in current period
Subtotal
3. Gains/losses from cash flow hedge instrument
Less: Income tax influences from cash flow hedge
Net amount reckoned into other consolidated
income in previous period but transferred into
gains/losses in current period
Adjusted amount transferred to initial confirmed
amount of the arbitraged itemsShandong Airlines Co., Ltd. Summary of Annual Report 2009
15
Subtotal
4. Differences from translating foreign currency
financial statements
Less: Net amount of disposing overseas business
transferred to current gains/losses
Subtotal
5. Others
Less: Income tax influences by others reckoned
into other consolidated income
Net amount reckoned into other consolidated
income in previous period but transferred into
gains/losses in current period
Subtotal
Total 0.00 0.00
§8. Report of the Supervisory Committee
√Applicable □Inapplicable
(I) Particulars about the work of Supervisory Committee
In 2009, the Supervisory Committee exerted the duties authorized by Company Law of the P.R.C.
and the Articles of Association of the Company according to laws with assiduity and responsibility,
actively implemented supervision functions on the Company’s operating decision-making, financial
status, the responsibility and behaviors of directors and senior managers in the period and tried to
safeguard the rights and interests of the shareholders.
The Supervisory Committee had hold four meetings of the Supervisory Committee and attended all
Shareholders’ General Meetings and meetings of the Board in 2009.
In the report period, the Supervisory Committee totally held the following meetings:
1. On Mar. 27th of 2009, the 9th Meeting of the 3rd Supervisory Committee was held in the conference
room of SDA Building. The meeting examined and approved the following proposals:
(1) The 2008 Annual Report and Summary of Shandong Airlines Co., Ltd;
(2) The 2008 Working Report of Shandong Airlines Co., Ltd.;
(3) Proposal on Accounting Treatment of Errors Correction of Interest Rate Swap.
The public notice of the resolutions was published on China Securities Journal, Securities Times and
Hong Kong Wen Wei Po dated Mar. 31st of 2009.
2. On April 28th of 2009, the 10th Meeting of the 3rd Supervisory Committee was held in the
conference room of SDA Building. The meeting examined and approved the Proposal on Election of
Changing Term of Supervisory Committee of Shandong Airlines Co., Ltd.
The public notice of the resolutions was published on China Securities Journal, Securities Times and
Hong Kong Wen Wei Po dated April 30th of 2009.
3. On June 26th of 2009, the 1st Meeting of the 4th Supervisory Committee was held in the conference
room of SDA Building. The meeting examined and approved Proposal on Election of Chairman of
Supervisory Committee of Shandong Airlines Co., Ltd.
The public notice of the resolutions was published on China Securities Journal, Securities Times and
Hong Kong Wen Wei Po dated June 27th of 2009.
4. On Aug. 21st of 2009, the Meeting of the Supervisory Committee was held in the conference room
of SDA Building. The meeting examined and approved the 2009 Semi-annual Report and its
Summary of Shandong Airlines Co., Ltd.Shandong Airlines Co., Ltd. Summary of Annual Report 2009
16
(II) Independent Opinions of the Supervisory Committee on relevant events in 2009
The Supervisory Committee conducted serious inspection and supervision on such conditions as the
Company’s finance, implementing resolutions of Shareholders’ General Meeting, operating
decision-making, operation according to laws, operating behaviors of directors, managers and senior
executives and related transactions, etc; and believed that the operation management of the Company
was in accordance with the relevant laws and regulations and the Articles of Association of the
Company.
1. Operation according to laws
In the report period, the Company conducted regulated operation complying with Company Law,
Securities Law, Articles of Association of the Company, and Rules for Shares Listed with Shenzhen
Stock Exchange and other national relevant laws and regulations. It implemented effective internal
control system inside the Company. Following the regulations and laws and being honest with faith
and diligence, directors and senior executives of the Company carefully implemented every
resolutions approved in Shareholders’ General Meeting with a view to protect the shareholders’
interests. There was no behaviors found that directors or senior executives broke the laws,
regulations, or Articles of Association or harmed the interests of the Company in their office terms.
2. Finance management of the Company
The Supervisory Committee carefully examined the financing situation of the Company. In the
opinion of the Supervisory Committee, 2009 Financial Report of the Company reflected the financial
situation and operation results of the Company truthfully and fairly. The accounting vouchers, books
and statements, and other accounting materials were genuine and standard.
3. Related transaction
The related transactions of the Company are done in accordance with the market principle, so they
are of equality and reasonable price, and also maintain the interests of shareholders’ equity and the
listed companies.
§9. Financial Report
9.1 Auditor’s opinions
Audited or not Yes
Auditor’s opinions Standard unqualified auditor’s opinions
Ref. No. of auditor’s
report Reanda SZi No.[2010]1141
Title of auditor’s report Auditor’s Report
Receiver of auditor’s
report Shareholders of Shanhang Airlines Co., Ltd.
Introduction paragraph
We have audited the accompanying financial statements of Shandong Airlines Co., Ltd.
(“the Company”), including balance sheet and consolidated balance sheet of 31 December
2009, and profit statement and consolidated profit statement, and cash flow statement and
consolidated cash flow statement, and statement on changes of owners’ equity and
consolidated statement on changes of owners’ equity for the year ended, and notes to the
financial statements for the year ended.
Responsibilities
paragraph of the
management on the
financial statements
The Company's management is responsible for the preparation and fair presentation of the
financial statements in accordance with the Enterprises Accounting Standards and
Enterprises Accounting System. The responsibility includes: (1) designing, performing
and maintaining internal control related to the preparation and fair presentation of the
financial statements, which are free from material misstatements whether due to frauds orShandong Airlines Co., Ltd. Summary of Annual Report 2009
17
errors; (2) choosing and applying right accounting policies; (3) making reasonable
accounting estimates.
Responsibilities
paragraph of the CPA
Our responsibility is to express an audit opinion on these financial statements based on
our audit. We performed our audit in accordance with Chinese Certified Public
Accountants Auditing Standards. Those standards require us to comply with professional
ethics, and to plan and perform our audit so as to obtain reasonable assurance about
whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures of the financial statements. The selective audit procedures depend on auditor’s
judgment, including the evaluation of the risk of material misstatement of the
consolidated financial statements due to frauds or errors. When evaluating risk, we
consider internal control related to financial statements, in order to design auditing
procedures, but not for the purpose of expressing an opinion on the internal control’s
effectiveness. An audit also includes assessing the appropriateness of the accounting
policies adopted and the reasonableness of the accounting estimates made by
management, as well as evaluating the overall presentation of the financial statements.
We believe that we have obtained sufficient and appropriate audit evidences to provide a
basis for our audit opinion.
Paragraph of auditor’s
opinions
In our opinion, the Company’s financial statements have been prepared in accordance
with the Enterprises Accounting Standards and Enterprises Accounting System, and they
fairly present, in all material respects, the financial position of the Company as of
December 31, 2009, and its operation results and cash flows for the year ended.
Non-standard opinions
Name of audit institution Reanda Certified Public Accountants
Address of audit
institution
Room 2008 on 20/F, East District of No.1 Building, No.100, Xili Street, Balizhuang,
Chaoyang District, Beijing
Date of auditor’s report March 24, 2010
Name of the Certified Accountants
Lin Wanqiang/Yang Yunhui
9.2 Financial statement
9.2.1 Balance Sheet
Prepared by Shandong Airlines Co., Ltd. December 31, 2009 Unit: RMB
Balance at Items period-end Balance at year-begin Consolidation Parent Company Consolidation Parent Company
Current assets:
Monetary funds 194,065,742.69 179,813,989.83 71,872,933.88 57,648,117.02
Settlement provisions
Capital lent
Transaction finance asset 11,341,846.48 11,341,846.48 23,460,812.11 23,460,812.11
Notes receivable
Accounts receivable 142,545,895.96 140,731,572.47 126,118,032.09 125,105,495.35
Accounts paid in
advance 22,504,262.48 22,370,882.70 29,124,244.97 28,986,600.63
Insurance receivable
Reinsurance receivables
Contract reserve of
reinsurance receivableShandong Airlines Co., Ltd. Summary of Annual Report 2009
18
Interest receivable
Dividend receivable 1,617,642.00 1,617,642.00
Other receivables 160,552,013.99 160,483,475.47 144,978,136.24 145,198,107.29
Purchase restituted
finance asset
Inventories 65,267,781.10 65,267,781.10 74,347,529.57 74,347,529.57
Non-current asset due
within one year
Other current assets
Total current assets 597,895,184.70 581,627,190.05 469,901,688.86 454,746,661.97
Non-current assets:
Granted loans and
advances
Finance asset available
for sales
Held-to-maturity
securities
Long-term account
receivable
Long-term equity
investment 88,352,100.00 112,165,305.97 88,352,100.00 112,165,305.97
Investment property
Fixed assets 6,631,600,764.96 6,619,089,545.44 5,684,074,945.46 5,670,839,727.85
Construction in progress 422,277,445.58 422,277,445.58 1,277,744,153.32 1,277,744,153.32
Engineering material
Disposal of fixed asset
Productive biological
asset
Oil and gas asset
Intangible assets 47,895,073.21 33,013,562.26 46,945,074.17 32,028,907.27
Expense on Research
and Development
Goodwill
Long-term expenses to
be apportioned 216,546,250.96 216,370,254.46 208,312,781.55 208,312,781.55
Deferred income tax
asset 91,836,911.34 91,812,136.84 68,774,158.11 68,767,156.73
Other non-current asset
Total non-current asset 7,498,508,546.05 7,494,728,250.55 7,374,203,212.61 7,369,858,032.69
Total assets 8,096,403,730.75 8,076,355,440.60 7,844,104,901.47 7,824,604,694.66
Current liabilities:
Short-term loans 739,819,020.88 739,819,020.88 1,006,887,514.55 1,006,887,514.55
Loan from central bank
Absorbing deposit and
interbank deposit
Capital borrowed
Transaction financial
liabilities
Notes payable 182,124,331.32 182,124,331.32 10,000,000.00 10,000,000.00
Accounts payable 812,032,950.07 810,639,584.15 875,319,060.11 873,297,361.73Shandong Airlines Co., Ltd. Summary of Annual Report 2009
19
Accounts received in
advance 117,956,240.43 117,467,352.04 87,735,493.54 86,115,566.69
Selling financial asset of
repurchase
Commission charge and
commission payable
Wage payable 135,033,537.40 135,018,545.42 91,119,967.07 91,114,079.09
Taxes payable 177,564,425.49 177,319,512.46 111,337,241.37 111,270,281.82
Interest payable 4,001,134.66 4,001,134.66 9,634,990.00 9,634,990.00
Dividend payable 11,940.00 11,940.00 11,940.00 11,940.00
Other accounts payable 124,930,463.59 124,872,192.44 161,736,748.70 161,909,084.49
Reinsurance payables
Insurance contract
reserve
Security trading of
agency
Security sales of agency
Non-current liabilities
due within 1 year 535,108,457.71 535,108,457.71 615,589,677.22 615,589,677.22
Other current liabilities
Total current liabilities 2,828,582,501.55 2,826,382,071.08 2,969,372,632.56 2,965,830,495.59
Non-current liabilities:
Long-term loans 3,402,752,588.39 3,402,752,588.39 3,159,333,277.39 3,159,333,277.39
Bonds payable
Long-term account
payable 968,968,451.94 968,968,451.94 1,114,459,905.38 1,114,459,905.38
Special accounts payable
Projected liabilities
Deferred income tax
liabilities 2,835,461.62 2,835,461.62 19,816,576.46 19,816,576.46
Other non-current
liabilities 27,718,573.00 27,718,573.00 18,319,557.83 18,319,557.83
Total non-current liabilities 4,402,275,074.95 4,402,275,074.95 4,311,929,317.06 4,311,929,317.06
Total liabilities 7,230,857,576.50 7,228,657,146.03 7,281,301,949.62 7,277,759,812.65
Owner’s equity (or
shareholders’ equity):
Paid-in capital (or share
capital) 400,000,000.00 400,000,000.00 400,000,000.00 400,000,000.00
Capital public reserve 84,050,162.84 84,050,162.84 84,050,162.84 84,050,162.84
Less: Inventory shares
Reasonable reserve
Surplus public reserve 59,576,069.03 58,915,364.50 29,490,727.77 28,830,023.24
Provision of general risk
Retained profit 308,668,390.11 304,732,767.23 36,471,405.69 33,964,695.93
Balance difference of
foreign currency translation
Total owner’s equity
attributable to parent
company
852,294,621.98 847,698,294.57 550,012,296.30 546,844,882.01
Minority interests 13,251,532.27 0.00 12,790,655.55
Total owner’s equity 865,546,154.25 847,698,294.57 562,802,951.85 546,844,882.01Shandong Airlines Co., Ltd. Summary of Annual Report 2009
20
Total liabilities and owner’s
equity 8,096,403,730.75 8,076,355,440.60 7,844,104,901.47 7,824,604,694.66
9.2.2 Profit Statement
Prepared by Shandong Airlines Co., Ltd. January-December, 2009 Unit: RMB
Amount in this period Amount in last period
Items Consolidation Parent Company Consolidation Parent Company
I. Total operating income 5,366,113,363.68 5,362,673,481.18 5,049,391,116.47 5,043,370,423.20
Including: Operating income 5,366,113,363.68 5,362,673,481.18 5,049,391,116.47 5,043,370,423.20
Interest income
Insurance gained
Commission charge and
commission income
II. Total operating cost 5,095,949,275.87 5,094,605,991.37 4,965,513,678.71 4,962,342,309.78
Including: Operating cost 4,110,033,275.19 4,111,698,242.88 4,156,123,366.72 4,154,810,196.93
Interest expense
Commission charge and
commission expense
Cash surrender value
Net amount of expense
of compensation
Net amount of
withdrawal of insurance
contract reserve
Bonus expense of
guarantee slip
Reinsurance expense
Operating tax and extras 158,797,763.77 158,446,999.40 132,823,862.65 132,521,572.99
Sales expenses 346,387,720.51 346,387,720.51 236,554,096.88 236,554,096.88
Administration expenses 228,619,847.42 225,696,583.77 187,022,654.78 185,216,685.46
Financial expenses 251,871,219.83 252,180,082.66 253,541,156.57 253,847,227.41
Losses of devaluation of
asset 239,449.15 196,362.15 -551,458.89 -607,469.89
Add: Changing income
of fair value(Loss is listed
with “-”)
-12,118,965.63 -12,118,965.63 -19,293,822.87 -19,293,822.87
Investment income (Loss
is listed with “-”) 3,715,867.94 3,715,867.94 11,175,753.02 11,632,849.93
Including: Investment
income on affiliated company
and joint venture
Exchange income (Loss
is listed with “-”)
III. Operating profit (Loss is
listed with “-”) 261,760,990.12 259,664,392.12 75,759,367.91 73,367,140.48
Add: Non-operating
income 155,122,260.87 155,122,260.87 43,893,809.88 43,886,369.82
Less: Non-operating
expense 13,521,945.17 13,520,445.27 11,392,350.23 11,392,350.23
Including: Disposal loss
of non-current asset 13,495,868.42 13,494,368.52 10,915,236.47 10,915,236.47Shandong Airlines Co., Ltd. Summary of Annual Report 2009
21
IV. Total Profit (Loss is
listed with “-”) 403,361,305.82 401,266,207.72 108,260,827.56 105,861,160.07
Less: Income tax 100,618,103.42 100,412,795.16 26,622,215.36 26,309,550.14
V. Net profit (Net loss is listed
with “-”) 302,743,202.40 300,853,412.56 81,638,612.20 79,551,609.93
Net profit attributable to
owner’s equity of parent
company
302,282,325.68 300,853,412.56 80,981,442.68 79,551,609.93
Minority shareholders’
gains and losses 460,876.72 0.00 657,169.52 0.00
VI. Earnings per share
i. Basic earnings per share 0.76 0.20
ii. Diluted earnings per share 0.76 0.20
VII. Other consolidated
income
VIII. Total consolidated
income 302,743,202.40 300,853,412.56 81,638,612.20 79,551,609.93
Total consolidated income
attributable to owners of
parent company
302,282,325.68 300,853,412.56 80,981,442.68 79,551,609.93
Total consolidated income
attributable to minority
shareholders
460,876.72 0.00 657,169.52 0.00
9.2.3 Cash Flow Statement
Prepared by Shandong Airlines Co., Ltd. January-December, 2009 Unit: RMB
Amount in this period Amount in last period
Items Consolidation Parent Company Consolidation Parent Company
I. Cash flows arising from
operating activities:
Cash received from selling
commodities and providing
labor services
5,372,538,176.19 5,371,074,050.51 5,142,461,900.44 5,136,425,151.76
Net increase of customer
deposit and interbank deposit
Net increase of loan from
central bank
Net increase of capital
borrowed from other financial
institution
Cash received from
original insurance contract fee
Net cash received from
reinsurance business
Insured savings and net
increase of investment
Net increase of disposal of
transaction financial asset
Cash received from
interest, commission charge
and commissionShandong Airlines Co., Ltd. Summary of Annual Report 2009
22
Net increase of capital
borrowed
Net increase of returned
business capital
Write-back of tax received
Other cash received
concerning operating activities 144,094,051.53 143,549,876.83 79,525,658.45 79,162,652.85
Subtotal of cash inflow
arising from operating activities 5,516,632,227.72 5,514,623,927.34 5,221,987,558.89 5,215,587,804.61
Cash paid for purchasing
commodities and receiving
labor service
3,288,589,954.21 3,290,761,891.91 3,362,644,381.56 3,362,102,687.66
Net increase of customer
loans and advances
Net increase of deposits in
central bank and interbank
Cash paid for original
insurance contract
compensation
Cash paid for interest,
commission charge and
commission
Cash paid for bonus of
guarantee slip
Cash paid to/for staff and
workers 614,147,622.35 612,051,079.62 543,461,203.22 542,037,899.11
Taxes paid 199,428,230.46 198,501,653.16 176,555,377.04 174,869,903.11
Other cash paid
concerning operating activities 97,119,270.28 96,311,963.23 79,493,490.51 79,146,006.44
Subtotal of cash outflow
arising from operating activities 4,199,285,077.30 4,197,626,587.92 4,162,154,452.33 4,158,156,496.32
Net cash flows arising
from operating activities 1,317,347,150.42 1,316,997,339.42 1,059,833,106.56 1,057,431,308.29
II. Cash flows arising from
investing activities:
Cash received from
recovering investment
Cash received from
investment income 2,098,225.94 2,098,225.94 11,211,668.70 11,211,668.70
Net cash received from
disposal of fixed, intangible and
other long-term assets
327,572,914.09 327,572,914.09 23,995.00 19,095.00
Net cash received from
disposal of subsidiaries and
other units
912,019.23 912,019.23
Other cash received
concerning investing activities
Subtotal of cash inflow
from investing activities 329,671,140.03 329,671,140.03 12,147,682.93 12,142,782.93
Cash paid for purchasing
fixed, intangible and other
long-term assets
1,002,204,067.04 1,001,881,192.04 1,298,080,393.22 1,297,866,611.22
Cash paid for investment
Net increase of mortgaged
loansShandong Airlines Co., Ltd. Summary of Annual Report 2009
23
Net cash received from
subsidiaries and other units
Other cash paid
concerning investing activities
Subtotal of cash outflow
from investing activities 1,002,204,067.04 1,001,881,192.04 1,298,080,393.22 1,297,866,611.22
Net cash flows arising
from investing activities -672,532,927.01 -672,210,052.01 -1,285,932,710.29 -1,285,723,828.29
III. Cash flows arising from
financing activities
Cash received from
absorbing investment
Including: Cash received
from absorbing minority
shareholders’ investment by
subsidiaries
Cash received from loans 2,228,373,619.53 2,228,373,619.53 2,578,478,035.95 2,578,478,035.95
Cash received from issuing
bonds
Other cash received
concerning financing activities
Subtotal of cash inflow
from financing activities 2,228,373,619.53 2,228,373,619.53 2,578,478,035.95 2,578,478,035.95
Cash paid for settling debts 2,345,081,757.10 2,345,081,757.10 1,812,750,241.19 1,812,750,241.19
Cash paid for dividend and
profit distributing or interest
paying
195,890,585.87 195,890,585.87 262,317,177.48 262,317,177.48
Including: Dividend and
profit of minority shareholder
paid by subsidiaries
Other cash paid
concerning financing activities 327,783,543.29 327,783,543.29 273,796,099.64 273,796,099.64
Subtotal of cash outflow
from financing activities 2,868,755,886.26 2,868,755,886.26 2,348,863,518.31 2,348,863,518.31
Net cash flows arising
from financing activities -640,382,266.73 -640,382,266.73 229,614,517.64 229,614,517.64
IV. Influence on cash due to
fluctuation in exchange rate -35,585.75 -35,585.75 -709,703.85 -706,709.41
V. Net increase of cash and cash
equivalents 4,396,370.93 4,369,434.93 2,805,210.06 615,288.23
Add: Balance of cash and
cash equivalents at the period
-begin
44,937,058.88 30,712,242.02 42,131,848.82 30,096,953.79
VI. Balance of cash and cash
equivalents at the period -end 49,333,429.81 35,081,676.95 44,937,058.88 30,712,242.02Shandong Airlines Co., Ltd. Summary of Annual Report 2009
24
9.2.4 Statement on Changes of Owners’ Equity
Prepared by Shandong Airlines Co., Ltd. 2009 Unit: RMB
Amount in this report period Amount in last year
Owners’ equity attributable to the parent company Owners’ equity attributable to the parent company
Items
Paid-up
capital
(Share
capital)
Capital
reserve
s
Less:
Treasur
y Stock
Reason
able
reserve
Surplus
reserve
s
Genera
l risk
provisi
on
Retaine
d profit
Others
Minorit
y’s
equity
Total
owners’
equity
Paid-up
capital
(Share
capital)
Capital
reserve
s
Less:
Treasur
y Stock
Reason
able
reserve
Surplus
reserve
s
Genera
l risk
provisi
on
Retaine
d profit
Others
Minorit
y’s
equity
Total
owners’
equity
I. Balance at the end of the last
year
400,00
0,000.0
0
84,050,
162.84
29,490,
727.77
36,471,
405.69
12,790,
655.55
562,80
2,951.8
5
400,00
0,000.0
0
84,050,
162.84
24,919,
586.71
-39,938
,895.93
12,133,
486.03
481,16
4,339.6
5
Add: Changes of accounting
policy
Error correction of the last
period
Others
II. Balance at the beginning of
this year
400,00
0,000.0
0
84,050,
162.84
29,490,
727.77
36,471,
405.69
12,790,
655.55
562,80
2,951.8
5
400,00
0,000.0
0
84,050,
162.84
24,919,
586.71
-39,938
,895.93
12,133,
486.03
481,16
4,339.6
5
III. Increase/ Decrease in this
year (Decrease is listed with
“-”)
30,085,
341.26
272,19
6,984.4
2
460,87
6.72
302,74
3,202.4
0
4,571,1
41.06
76,410,
301.62
657,16
9.52
81,638,
612.20
(I) Net profit
302,28
2,325.6
8
460,87
6.72
302,74
3,202.4
0
80,981,
442.68
657,16
9.52
81,638,
612.20Shandong Airlines Co., Ltd. Summary of Annual Report 2009
25
(II) Other consolidated income
Subtotal of (I) and (II)
302,28
2,325.6
8
460,87
6.72
302,74
3,202.4
0
80,981,
442.68
657,16
9.52
81,638,
612.20
(III) Owners’ devoted and
decreased capital
1. Owners’ devoted capital
2. Amount calculated into
owners’ equity paid in shares
3. Others
(IV) Profit distribution
30,085,
341.26
-30,085
,341.26
4,571,1
41.06
-4,571,
141.06
1. Withdrawal of surplus
reserves
30,085,
341.26
-30,085
,341.26
4,571,1
41.06
-4,571,
141.06
2. Withdrawal of general risk
provisions
3. Distribution for owners
(shareholders)
4. Others
(V) Carrying forward internal
owners’ equity
1. Capital reserves conversed to
capital (share capital)
2. Surplus reserves conversed
to capital (share capital)Shandong Airlines Co., Ltd. Summary of Annual Report 2009
26
3. Remedying loss with surplus
reserve
4. Others
(VI) Reasonable reserve
1. Withdrawal in the report
period
2. Usage in the report period
IV. Balance at the end of the
report period
400,00
0,000.0
0
84,050,
162.84
59,576,
069.03
308,66
8,390.1
1
13,251,
532.27
865,54
6,154.2
5
400,00
0,000.0
0
84,050,
162.84
29,490,
727.77
36,471,
405.69
12,790,
655.55
562,80
2,951.8
5
9.2.5 Statement on Changes of Owners’ Equity of Parent Company
Prepared by Shandong Airlines Co., Ltd. 2009 Unit: RMB
Amount in this report period Amount in last year
Paid-up
capital
(Share
capital)
Capital
reserves
Less:
Treasury
Stock
Reasonab
le reserve
Surplus
reserves
General
risk
provision
Retained
profit
Total
owners’
equity
Paid-up
capital
(Share
capital)
Capital
reserves
Less:
Treasury
Stock
Reasonab
le reserve
Surplus
reserves
General
risk
provision
Retained
profit
Total
owners’
equity
I. Balance at the end of the last
year
400,000,0
00.00
84,050,16
2.84
28,830,02
3.24
33,964,69
5.93
546,844,8
82.01
400,000,0
00.00
84,050,16
2.84
24,442,94
8.14
-41,199,8
38.89
467,293,2
72.09
Add: Changes of accounting
policy
Error correction of the last period
OthersShandong Airlines Co., Ltd. Summary of Annual Report 2009
27
II. Balance at the beginning of
this year
400,000,0
00.00
84,050,16
2.84
28,830,02
3.24
33,964,69
5.93
546,844,8
82.01
400,000,0
00.00
84,050,16
2.84
24,442,94
8.14
-41,199,8
38.89
467,293,2
72.09
III. Increase/ Decrease in this
year (Decrease is listed with “-”)
30,085,34
1.26
270,768,0
71.30
300,853,4
12.56
4,387,075
.10
75,164,53
4.82
79,551,60
9.92
(I) Net profit
300,853,4
12.56
300,853,4
12.56
79,551,60
9.92
79,551,60
9.92
(II) Other consolidated income
Subtotal of (I) and (II)
300,853,4
12.56
300,853,4
12.56
79,551,60
9.92
79,551,60
9.92
(III) Owners’ devoted and
decreased capital
1. Owners’ devoted capital
2. Amount calculated into
owners’ equity paid in shares
3. Others
(IV) Profit distribution
30,085,34
1.26
-30,085,3
41.26
4,387,075
.10
-4,387,07
5.10
1. Withdrawal of surplus reserves
30,085,34
1.26
-30,085,3
41.26
4,387,075
.10
-4,387,07
5.10
2. Withdrawal of general risk
provisions
3. Distribution for owners
(shareholders)
4. OthersShandong Airlines Co., Ltd. Summary of Annual Report 2009
28
(V) Carrying forward internal
owners’ equity
1. Capital reserves conversed to
capital (share capital)
2. Surplus reserves conversed to
capital (share capital)
3. Remedying loss with profit
surplus
4. Others
(VI) Reasonable reserve
1. Withdrawal in the report
period
2. Usage in the report period
IV. Balance at the end of the
report period
400,000,0
00.00
84,050,16
2.84
58,915,36
4.50
304,732,7
67.23
847,698,2
94.57
400,000,0
00.00
84,050,16
2.84
28,830,02
3.24
33,964,69
5.93
546,844,8
82.01Shandong Airlines Co., Ltd. Summary of Annual Report 2009
29
9.3 Explanation on changes of accounting policy, accounting estimation and settlement method
compared with the latest annual report
√Applicable □Inapplicable
With the changes on recent market condition and pilot mobility, the Company re-examined the
beneficial years in accordance with the service years and resignations of the pilots. The 2010 First
Extraordinary Meeting of the 4th Board of the Company examined and approved the Proposal on
Changes to Accounting Estimation of Shandong Airlines Co., Ltd., which decided to adopt new
accounting estimations since Oct. 1, 2009, and change the amortization periods of training expense
on pilots from 20 years to 10 year. Thus, the changes of accounting estimation made the current net
profit decrease amounting to RMB 24,159,590.99.
9.4 Contents, correction amount, reason and its influence of significant accounting errors
□Applicable √Inapplicable
9.5 Explanation on change of consolidated scope compared with the latest annual report
□Applicable √Inapplicable
