Shandong Airlines Co., Ltd. Summary of Semi-Annual Report 2012
Shandong Airlines Co., Ltd.
Summary of Semi-Annual Report 2012
I. Important Notes
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.
All directors are attending the Meeting for deliberation and approval for the semi-annual report.
Financial report of this semi-annual repot has not been audited by CPA.
Zhang Xingfu, person in charge of the Company, Xu Guojian, person in charge of accounting works,
and Wang Wuping, person in charge of accounting institution (accounting officer) hereby confirm
the truthfulness and completeness of the Financial Report in the Semi-annual Report 2012.
II. Company Profile
(I) Company profile
Short form for B-stock Shanhang B
Code for B-stock 200152
Listing stock exchange Shenzhen Stock Exchange
Secretary of the Board Representative of security affairs
Name Dong Qiantang Fan Peng
19/F, SDA Building, No. 5746, Er 19/F, SDA Building, No. 5746, Er
Contact adds.
Huan East Road, Jinan, Shandong Huan East Road, Jinan, Shandong
Tel. 0531－85698229 0531－85698678
Fax. 0531－85698679 0531－85698679
E-mail dongqt@shandongair.com.cn fanp@shandongair.com.cn
(II) Major financial data and indexes
1. Major accounting data and financial indexes
Whether retroactive adjusted on previous financial report or not
□Yes √ No
Increase/decrease in this
End of this report period End of last period period-end over that of
last year (%)
Total assets(RMB) 10,505,185,661.23 9,772,985,545.97 7.49%
Owners’ equity attributable to
shareholders of the listed 2,080,267,300.97 2,049,244,919.81 1.51%
company(RMB)
Share capital(Share) 400,000,000.00 400,000,000.00 0.00%
Net assets per share attributable to
shareholder of listed company 5.2 5.12 1.56%
(RMB/ Share)
Asset-liability ratio (%) 80.2% 79.03% 1.17 percentages points up
Increase/decrease in this
Reporting period (Jan.
Same period of last year report period
to June)
year-on-year (%)
Total business revenue(RMB) 5,072,407,702.98 4,322,532,092.31 17.35%
Business profit(RMB) 224,271,348.25 462,403,813.87 -51.50%
1
Shandong Airlines Co., Ltd. Summary of Semi-Annual Report 2012
Total profit(RMB) 254,384,133.10 471,886,182.46 -46.09%
Net profit attributable to
shareholders of the listed company 191,022,381.16 354,185,295.46 -46.07%
(RMB)
Net profit attributable to
shareholders of the listed company
172,303,947.91 351,626,127.86 -51.00%
after deducting non-recurring gains
and losses(RMB)
Basic earnings per share
0.48 0.89 -46.07%
(RMB/Share)
Diluted earnings per share
0.48 0.89 -46.07%
(RMB/Share)
13.81 percentages points
Weighted average ROE (%) 9.13% 22.94%
down
Weighted average ROE after
14.54 percentages points
deducting non-recurring gains/losses 8.24% 22.78%
down
(%)
Net cash flow arising from operating
641,489,981.41 833,321,188.67 -23.02%
activities(RMB)
Net cash flow per share arising from
1.6 2.08 -23.08%
operating activities (RMB/Share)
Explanation on former accounting data and financial index at period-end
Increasing
Introductions to reasons of
th 31st, December, and
Project 30 , June, 2012 increasing and decreasing
2011 decreasing
changes
changes %
Mainly due to receiving
Monetary capital 346,351,446.97 248,185,747.48 39.55% cashes from the end
fund-raising
Mainly due to the increase in
Payment in advance 58.87% leasing aircraft and then the
65,692,293.46 41,348,446.65 increase in advance deposit
Mainly due to the increase in
the overhaul costs of accrued
aircraft assets and deferred
Deferred income tax
306,289,060.23 230,402,218.41 32.94% income tax assets
assets
corresponding to affirming
the reward points for frequent
flyer
Mainly due to the fair value
Transaction financial
6,383,500.14 2,145,521.10 197.53% changes of interest rate swaps
liabilities
contract held by the company
Mainly due to the maturity of
Notes payable 129,547,193.34 -100.00%
- bill of exchange
Employee pay Mainly due to the payment
171,987,247.15 263,739,110.65 -34.79%
payable for 2011 annual bonus
January to June, January to June,
2012 2011
Mainly due to the increase in
Management fee 111,021,150.38 80,241,899.17 38.36%
labor costs at current period
Mainly due to the devaluation
of RMB, the exchange
Financial expenses 130,250,004.76 43,934,555.41 196.46%
earning becomes to exchange
loss compared with the
2
Shandong Airlines Co., Ltd. Summary of Semi-Annual Report 2012
corresponding period of last
year
Mainly due to the calculation
Asset impairment determined by accounting
81,973.79 783,970.23 -89.54%
loss policies for bad debt reserves
executed by the company
Mainly due to the fair value
Gains arising from changes of interest rate swaps
-4,237,979.04 -2,006,791.66 111.18%
changes in fair value transaction held by the
company
Mainly due to increase in
dividends from external
investment at current period
Income from
14,378,505.19 7,275,314.20 97.63% and loss reduction in actual
investment
delivery for the interest rate
swap transaction held by the
company
Non-operating Mainly due to increase in
39,354,859.38 17,819,973.11 120.85%
income subsidy for flight path
Mainly due to reduction in
Income tax expenses 63,361,751.94 118,333,075.76 -46.45% profits and relevant income
tax expense
January to June, January to June,
2012 2011
Mainly due to increase in
current funds for paying
Cashes paid for
import aviation materials
others related to 135.46%
62,953,082.50 26,736,517.36 margin at current period and
operating activities
increase in scale, relevant
costs and expenses
Cashes paid for
Mainly due to purchase for
acquisition of fixed
two CRJ 700 flights whose
assets, intangible 832,707,582.78 555,500,516.86 49.90%
operating lease is due at the
assets and other
current period
long-term assets
Mainly due to purchase for
Cashes paid for
- 12,255,000.00 -100.00% Qingdao logistics stock rights
investment
at the same period of last year
Mainly due to decrease in
Cashes paid for actual delivery loss of interest
others related to 916,894.81 2,914,720.42 -68.54% rate swap transaction of the
investing activities company compared to the
same period of last year
Mainly due to MTN issued by
Cashes received by
500,000,000.00 the company at the current
issuing bonds
period
Mainly due to decrease in
Cashes received banker's acceptance and
from others related 7,500,000.00 66,740,000.00 -88.76% margin financing of Huilida
to financial activities agreement withdrawn by the
company at current period
Mainly due to decrease in
Cashes paid for refund at current period
281,339,544.44 484,958,885.00 -41.99%
repayment of debt compared with the same
period of last year
3
Shandong Airlines Co., Ltd. Summary of Semi-Annual Report 2012
2. Items of non-recurring gains/losses
√Applicable □Not applicable
Amount from
Items of non-recurring gains/losses year-begin to Note
period-end (RMB)
Gains and losses from disposal of non-current
-9,150,038.38
assets
Tax refund or exemption out of authorization, with
absence of official approval document or
accidentally
Governmental subsidy calculated into current gains
and losses(while closely related with the normal
business of the Company, excluding the 6,358,400.06 Route government subsidy etc.
fixed-amount or fixed-proportion governmental
subsidy according to the unified national standard)
Fund occupation expenses received from
non-financial enterprises that reckon into current
gains/losses
Income occurred when investment cost paid by
enterprise for obtaining subsidiaries, associates and
joint ventures are lower than its share in fair
value of net realizable assets of invested units
Gains and losses from exchange of non-monetary
assets
Gains and losses from entrusted investment or
management assets
Various asset impairment reserve provided for force
majeure, such as natural disaster;
Gains/losses from debt reorganization
Reorganization expenses, such as expenditure for
allocation of employees and integration fee
Gains and losses from excess of transaction which
are conducted on a non-fair-valued basis over its
fair value
Current net gains and losses of subsidiaries
occurred from combination under the same control
commencing from period-begin to combination
date
Gains and losses from contingent events which has
no relation with normal business of the Company
Gains and losses from change of fair values of
held-for-transaction financial assets and financial
liabilities except for the effective hedge business
related to normal business of the Company, and -5,154,873.85
investment income from disposal of transactional
financial assets and liabilities and financial assets
available for sale
Reversal of impairment reserve for account
receivable with separate impairment testing
gains/ losses from external entrustment loans
Gains and losses arising from change of fair value
of investment properties whose follow-up
measurement are at fair value
Affect upon current gains/losses arising from the
4
Shandong Airlines Co., Ltd. Summary of Semi-Annual Report 2012
one-off adjustment in subject to requirement of
laws and rules in relation to taxation and
accounting
Income from entrusted custody operation
Other non-operating income and expenditure
32,904,423.17 Other non-operating expenditure
except the abovementioned
Other item that satisfied the definition of
non-recurring gains and losses
Influenced amount of minority shareholders’ equity
Impact on income tax -6,239,477.75
Total 18,718,433.25 --
3. Difference of net profit and net assets disclosed in financial report based on IAS and CAS
□ Applicable √ not applicable
4. Difference of net profit and net assets disclosed in financial report based on foreign
accounting standards and CAS
□ Applicable √ not applicable
III. Changes in Share Capital and Particular about Shareholders
(I) Changes in share capital
□ Applicable √ not applicable
(II) Statement of shares held by top ten shareholders and the top ten shareholders with
unrestricted conditions/circulate shareholders
Statement of shares held by top 10 shareholders and top 10 shareholders with circulated shares held
Total shareholders 19,043
Particulars about the shares held by the top ten shareholders
Total amount of Amount of Shares pledged or frozen
Shareholders (full Nature of Proporti
shares held at non-circulate
name) shareholders on (%)
period-end d shares held Share status Amount
SHANDONG State-owned
42% 168,004,000 168,004,000
AVIATION GROUP legal person
State-owned
AIR CHINA LIMITED 22.8% 91,200,000 91,200,000
legal person
GUOTAI JUNAN
Foreign legal p
SECURITIES(HONGK 0.86% 3,421,508 0
erson
ONG) LIMITED
Domestic
Yao Ming 0.58% 2,300,300 0
natural person
Domestic
Chen Jingjian 0.34% 1,378,200 0
natural person
Domestic
Ou Yanping 0.24% 945,043 0
natural person
WANXIANG
INTERNATIONAL Foreign legal
0.23% 925,000 0
INVESTMENT person
CORPORATION
Foreign natural
HUANG LIU LIA 0.23% 918,917 0
person
Ye Qufa Domestic 0.21% 824,600 0
5
Shandong Airlines Co., Ltd. Summary of Semi-Annual Report 2012
natural person
Domestic
Bao Xiuzhen 0.2% 800,000 0
natural person
Particulars about shares held by the top ten shareholders of circulation share
Type/amount of shares
Shareholders Circulating shares held
Type Amount
GUOTAI JUNAN
3,421,508 B-share 3,421,508
SECURITIES(HONGKONG) LIMITED
Yao Ming 2,300,300 B-share 2,300,300
Chen Jingjian 1,378,200 B-share 1,378,200
Ou Yanping 945,043 B-share 945,043
WANXIANG INTERNATIONAL
925,000 B-share 925,000
INVESTMENT CORPORATION
HUANG LIU LIA 918,917 B-share 918,917
Ye Qufa 824,600 B-share 824,600
Bao Xiuzhen 800,000 B-share 800,000
JOHN POSS 748,300 B-share 748,300
Wu Haoyuan 704,020 B-share 704,020
Among the above the top ten shareholders, Air China 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
Explanation on associated relationship Management Regulation of Information Disclosure on Change of
among the top ten shareholders or (and) Shareholding for Listed Companies with the other shareholders. The
consistent action 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.
(III) Changes of controlling shareholders and actual controller
□Applicable √Not applicable
IV. Directors, Supervisors and Senior Executives
(I) Changes of shares held by directors, supervisors and senior executive
Amount Amount of Amount of
Shares held of shares shares Shares held Including: stock
at increase in decreased at restricted option held Reasons for
Name Title
period-begi this in this period-end shares held at changes
n(Share) period(Shar period (Share) (Share) period-end
e) (Share) (Share)
Chairman
Zhang
of the 0 0 0 0 0 0
Xingfu
Board
Ma Deputy
0 0 0 0 0 0
Congxian chairman
Zeng
Director 0 0 0 0 0 0
Guoqiang
Yu Haitian Director 0 0 0 0 0 0
6
Shandong Airlines Co., Ltd. Summary of Semi-Annual Report 2012
GM
Director,
Deputy
Xu Guojian 0 0 0 0 0 0
GM, Chief
Accountant
Wang
Director 0 0 0 0 0 0
Minyuan
Wang
Director 0 0 0 0 0 0
Jieming
Li Xiuqin Director 0 0 0 0 0 0
Independen
Wang t 0 0 0 0 0 0
Kaiyuan
director
Independen
Ping t 0 0 0 0 0 0
Xiaofeng
director
Independen
Li Chun t 0 0 0 0 0 0
director
Independen
Qu t 0 0 0 0 0 0
Wenzhou
director
Chairman
of
Wang
supervisor 0 0 0 0 0 0
Fuzhu
y
committee
Xue Ruitao Supervisor 0 0 0 0 0 0
Zhang Kai Supervisor 0 0 0 0 0 0
Dong
Supervisor 0 0 0 0 0 0
Jianmin
Zhou
Supervisor 0 0 0 0 0 0
Qiaoyan
Standing
Su
Deputy 0 0 0 0 0 0
Zhongmin
GM
Deputy
Li Qing’en 0 0 0 0 0 0
GM
Deputy
Qiu Feng 0 0 0 0 0 0
GM
Miao Deputy
0 0 0 0 0 0
Liubin GM
Jiang Deputy
0 0 0 0 0 0
Chengda GM
Zhang
Chief pilot 0 0 0 0 0 0
Qingshe
Xiong Chief
0 0 0 0 0 0
Jianbo engineer
Wang CSO 0 0 0 0 0 0
7
Shandong Airlines Co., Ltd. Summary of Semi-Annual Report 2012
Xianlin
Secretary
Dong
of the 0 0 0 0 0 0
Qiantang
Board
V. Report of the Board of Directors
(I) Statement of main business classified according to industries and products
Unit: RMB
Main business classified according to industries
Increase or Increase or
Increase or
decrease of decrease of
decrease of
operating gross profit
According to Operating Gross profit operating cost
Operating cost revenue over ratio over the
industries revenue ratio (%) over the last
the last same last same
same period of
period of last period of last
last year (%)
year (%) year (%)
Aviation
transportation 4,996,878,206.46 4,080,162,639.35 18.35% 17.55% 23.33% -3.82%
services
Logistics
transportation 4,343,960.36 1,484,268.69 65.83% 13.57% -1.98% 5.42%
services
Hotel and food
7,811,810.36 6,829,054.69 12.58% 6.17% 6.79% -0.51%
services
Training
7,084,704.57 2,423,290.18 65.8% -30.33% -47.49% 11.19%
service
(II) Main business classified according to areas
Unit: RMB
Increase/decrease in revenue from
Areas Operating revenue operations over the same period of
last year (%)
Domestic 4,858,373,088.02 17.28%
International 63,311,876.07 0.84%
region 94,433,717.66 40.87%
(III) Explanation on reasons of material changes in main operations and its structure
□Applicable √Not applicable
(IV) Explanation on reasons of material changes in profitability (gross profit ratio) of main
operations compared with that of last year
□Applicable √Not applicable
(V) Analysis on reasons of material changes in profit structure compared with the previous
year
□Applicable √Not applicable
(VI) Application of the raised proceeds
1. Statement of application of the raised proceeds
□Applicable √Not applicable
8
Shandong Airlines Co., Ltd. Summary of Semi-Annual Report 2012
2. Statement of changes on projects invested by raised funds
□Applicable √Not applicable
(VII) The modification of Board to the business plan for the second half of the year
□Applicable √Not applicable
(VIII) Prediction of business performance from January – September 2012
Estimation on accumulative net profit from the beginning of the year to the end of next report
period to be loss probably or the warning of its material change compared with the corresponding
period of the last year and explanation on reason
□Applicable √Not applicable
(IX) Explanation on “Qualified Opinion” from the Certified Public Accountants in the report
period by the Board of Directors
□Applicable √Not applicable
(X) Explanation of the Management on changes and disposal of the issues involved in
“Qualified Opinion” from the Certified Public Accountants in the last year by the Board of
Directors
□Applicable √Not applicable
VI. Significant Event
(I) Assets acquisition, sales of assets and assets reorganization
1. Assets purchased or acquired
□Applicable √Not applicable
2. Assets sold
□Applicable √Not applicable
3. Progress of the events and their influence on the Company’s operating results and financial
status in the report period after the Report on Assets Restructure or Public Notice on
Acquisition and Sales of Assets being published
□Applicable √Not applicable
(II) Guarantee
□Applicable √Not applicable
(III) Non-operating current related credits and liabilities
Whether have non-operating current related credits and liabilities or not
□ Yes □ No
(IV) Material lawsuits and arbitrations
□Applicable √Not applicable
(V) Other significant events and analysis of their influences and solution plan
□Applicable √Not applicable
1. Security investment
□Applicable √Not applicable
2. Equity of other listed company held by the Company
□Applicable √Not applicable
3. Fund occupation and progress of paying off
□Applicable √Not applicable
Till end of reporting period, accountability plan proposed by the Board for completed no non-operational fund
occupation from listed company
□Applicable √Non-applicable
4. Implementation of commitments
Commitments made by the Company and its directors, supervisors, senior executives, shareholders holding above
5% shares of the Company and actual controller in reporting period or extending to reporting period
√Applicable □Not applicable
Commitments Accepter Contents Implementation
9
Shandong Airlines Co., Ltd. Summary of Semi-Annual Report 2012
Commitments for
Share Merger Reform
Commitments in report of
acquisition or equity change
Commitments in assets
replacement
Commitments made in
issuing
The compensation commitment for profit
estimation was made by first largest
shareholder SDA, based on “Appraisal
Report” while 100 percent equity of
Qingdao Feisheng was bided by the
Company. The above commitments are:
calculated by income approach, net profit Qingdao Feisheng gains a
Other commitments for generated from Qingdao Feisheng in next 3 profit target in 3rd year
medium and small Shandong Aviation Group years predicted to 4.8049 million yuan, commitment period, no cash
shareholders 5.3614 million yuan and 5.7784 million compensation required from
yuan respectively. If Qingdao Feisheng SDA
does not accomplish the estimative profit
in operation performance on the continual
appraisal basis, which causes the
Company’s profit loss, SDA Group
committed for the cash compensation for
the above difference.
5. Profit distribution of Board of Directors this time or preplan of capital reserve capitalizing
□Applicable √Not applicable
6. Items of other consolidated income
Unit: RMB
Amount occurred in
Amount occurred in the
Items same period of last
report period
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 items
10
Shandong Airlines Co., Ltd. Summary of Semi-Annual Report 2012
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 0 0
Total 0 0
(VI)Registration form of receiving research, communication and interview in the report
period
Content discussed and
Date Place Way Type Object
documents provided
Individual General operation of
Telephone
Jan.-June 2012 Jinan Individual the Company; no files
communication investor provided
News media,
Corporate General operation of
shareholders the Company,
2012-04-26 Jinan Field research Other and provided annual report
Individual of the Company
investor
News media,
Corporate
shareholders General operation of
2012-06-28 Jinan Field research Other and the Company; no files
Individual provided
investor
VII. Financial Report
(I) Auditing opinion
Audited the semi-annual report or not
□ Yes √No
(II) Financial statement
Whether consolidated statement or not:
√Yes □No
1. Consolidated Balance Sheet
Prepared by Shandong Airlines co., ltd
Unit: RMB
Items Note Balance at period-end Balance at period-begin
Current assets:
Monetary funds 346,351,446.97 248,185,747.48
Settlement provisions
11
Shandong Airlines Co., Ltd. Summary of Semi-Annual Report 2012
Capital lent
Transaction finance asset 0.00 0.00
Notes receivable 0.00 0.00
Accounts receivable 235,552,092.74 185,700,185.84
Accounts paid in advance 65,692,293.46 41,348,446.65
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance
receivable
Interest receivable 0.00 0.00
Dividend receivable 15,295,400.00 0.00
Other receivables 199,424,636.65 189,156,268.92
Purchase restituted
finance asset
Inventories 99,228,981.05 116,270,780.19
Non-current asset due
0.00 0.00
within one year
Other current assets 0.00 0.00
Total current assets 961,544,850.87 780,661,429.08
Non-current assets:
Granted loans and
advances
Finance asset available
0.00 0.00
for sales
Held-to-maturity
0.00 0.00
investment
Long-term account
0.00 0.00
receivable
Long-term equity
88,352,100.00 88,352,100.00
investment
Investment real estate 0.00 0.00
Fixed assets 7,413,018,015.12 6,683,456,551.61
Construction in progress 1,377,127,745.67 1,644,924,919.38
Engineering material 0.00 0.00
Disposal of fixed asset 0.00 0.00
Productive biological
0.00 0.00
asset
Oil and gas asset 0.00 0.00
Intangible assets 79,528,406.79 79,187,122.04
Expense on Research and
0.00 0.00
Development
Goodwill 10,220,816.22 10,220,816.22
Long-term expenses to be
269,104,666.33 255,780,389.23
apportioned
Deferred income tax asset 306,289,060.23 230,402,218.41
12
Shandong Airlines Co., Ltd. Summary of Semi-Annual Report 2012
Other non-current asset 0.00 0.00
Total non-current asset 9,543,640,810.36 8,992,324,116.89
Total assets 10,505,185,661.23 9,772,985,545.97
Current liabilities:
Short-term loans 694,765,886.10 767,636,239.20
Loan from central bank
Absorbing deposit and
interbank deposit
Capital borrowed
Transaction financial
6,383,500.14 2,145,521.10
liabilities
Notes payable 0.00 129,547,193.34
Accounts payable 1,685,423,513.59 1,373,857,875.23
Accounts received in
228,150,513.65 292,846,652.42
advance
Selling financial asset of
repurchase
Commission charge and
commission payable
Wage payable 171,987,247.15 263,739,110.65
Taxes payable 192,394,510.56 168,132,279.57
Interest payable 8,136,638.93 8,048,176.38
Dividend payabl 11,940.00 11,940.00
Other accounts payable 195,746,041.59 161,746,628.41
Reinsurance payables
Insurance contract reserve
Security trading of agency
Security sales of agency
Non-current liabilities due
415,717,634.98 384,557,360.39
within 1 year
Other current liabilities 0.00 0.00
Total current liabilities 3,598,717,426.69 3,552,268,976.69
Non-current liabilities:
Long-term loans 3,197,480,771.07 3,007,009,638.54
Bonds payable 501,012,916.00 0.00
Long-term account
939,125,064.76 1,004,200,349.34
payable
Special accounts payable 0.00 0.00
Projected liabilities 0.00 0.00
Deferred income tax
0.00 0.00
liabilities
Other non-current
188,582,181.74 160,261,661.59
liabilities
Total non-current liabilities 4,826,200,933.57 4,171,471,649.47
13
Shandong Airlines Co., Ltd. Summary of Semi-Annual Report 2012
Total liabilities 8,424,918,360.26 7,723,740,626.16
Owner’s equity (or
shareholders’ equity):
Paid-up capital (or share
400,000,000.00 400,000,000.00
capital)
Capital public reserve 75,410,363.70 75,410,363.70
Less: Inventory shares
Reasonable reserve
Surplus public reserve 199,414,021.75 199,414,021.75
Provision of general risk
Retained profit 1,405,442,915.52 1,374,420,534.36
Balance difference of
foreign currency translation
Total owner’s equity
2,080,267,300.97 2,049,244,919.81
attributable to parent company
Minority interests
Total owner’s equity(or
2,080,267,300.97 2,049,244,919.81
shareholders’ equity)
Total liabilities and owner’s
10,505,185,661.23 9,772,985,545.97
equity(or shareholders’ equity)
Legal representative: Zhang Xingfu
Person in charge of accounting works: Xu Guojian
Person in charge of accounting institution: Wang Wuping
2. Balance Sheet of parent company
Unit: RMB
Items Note Balance at period-end Balance at period-begin
Current assets:
Monetary funds 339,395,692.45 243,921,301.34
Transaction finance asset
Notes receivable
Accounts receivable 228,507,076.91 179,188,885.98
Accounts paid in advance 64,600,828.41 40,940,314.17
Interest receivable
Dividend receivable 15,295,400.00
Other receivables 221,209,764.28 203,763,094.81
Inventories 99,228,981.05 116,270,780.19
Non-current asset due
within one year
Other current assets
Total current assets 968,237,743.10 784,084,376.49
Non-current assets:
Finance asset available
for sales
Held-to-maturity
14
Shandong Airlines Co., Ltd. Summary of Semi-Annual Report 2012
investment
Long-term account
receivable
Long-term equity
194,352,785.43 194,352,785.43
investment
Investment real estate
Fixed assets 7,355,828,640.34 6,623,652,373.64
Construction in progress 1,342,796,309.47 1,621,968,762.03
Engineering material
Disposal of fixed asset
Productive biological
asset
Oil and gas asset
Intangible assets 64,733,535.57 64,374,922.89
Expense on Research and
Development
Goodwill
Long-term expenses to be
268,955,792.53 255,600,868.72
apportioned
Deferred income tax asset 306,165,683.01 230,083,720.58
Other non-current asset
Total non-current asset 9,532,832,746.35 8,990,033,433.29
Total assets 10,501,070,489.45 9,774,117,809.78
Current liabilities:
Short-term loans 694,765,886.10 767,636,239.20
Transaction financial
6,383,500.14 2,145,521.10
liabilities
Notes payable 129,547,193.34
Accounts payable 1,686,066,181.24 1,372,067,599.53
Accounts received in
225,656,167.16 291,086,272.00
advance
Wage payable 171,946,867.74 263,558,230.63
Taxes payable 192,125,505.70 166,980,287.94
Interest payable 8,136,638.93 8,048,176.38
Dividend payable 11,940.00 11,940.00
Other accounts payable 197,249,901.77 168,068,512.20
Non-current liabilities due
415,717,634.98 384,557,360.39
within 1 year
Other current liabilities
Total current liabilities 3,598,060,223.76 3,553,707,332.71
Non-current liabilities:
Long-term loans 3,197,480,771.07 3,007,009,638.54
Bonds payable 501,012,916.00
Long-term account 939,125,064.76 1,004,200,349.34
15
Shandong Airlines Co., Ltd. Summary of Semi-Annual Report 2012
payable
Special accounts payable
Projected liabilities
Deferred income tax
liabilities
Other non-current
188,582,181.74 160,261,661.59
liabilities
Total non-current liabilities 4,826,200,933.57 4,171,471,649.47
Total liabilities 8,424,261,157.33 7,725,178,982.18
Owner’s equity (or
shareholders’ equity):
Paid-up capital (or share
400,000,000.00 400,000,000.00
capital)
Capital public reserve 86,911,168.71 86,911,168.71
Less: Inventory shares
Reasonable reserve
Surplus public reserve 198,753,317.22 198,753,317.22
Provision of general risk
Retained profit 1,391,144,846.19 1,363,274,341.67
Balance difference of
foreign currency translation
Total owner’s equity(or
2,076,809,332.12 2,048,938,827.60
shareholders’ equity)
Total liabilities and owner’s
10,501,070,489.45 9,774,117,809.78
equity(or shareholders’ equity)
3. Consolidated Profit Statement
Unit: RMB
Items Note Amount in this period Amount in last period
I. Total operating income 5,072,407,702.98 4,322,532,092.31
Including: Operating income 5,072,407,702.98 4,322,532,092.31
Interest income
Insurance gained
Commission charge and
commission income
II. Total operating cost 4,858,276,880.88 3,865,396,800.98
Including: Operating cost 4,094,937,039.01 3,324,900,493.51
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
16
Shandong Airlines Co., Ltd. Summary of Semi-Annual Report 2012
Operating tax and extras 168,513,764.34 143,039,334.76
Sales expenses 353,472,948.60 272,496,547.90
Administration expenses 111,021,150.38 80,241,899.17
Financial expenses 130,250,004.76 43,934,555.41
Losses of devaluation of asset 81,973.79 783,970.23
Add: Changing income of fair
-4,237,979.04 -2,006,791.66
value(Loss is listed with “-”)
Investment income (Loss is
14,378,505.19 7,275,314.20
listed with “-”)
Including: Investment income
on affiliated company and joint 0.00 0.00
venture
Exchange income (Loss is
listed with “-”)
III. Operating profit (Loss is
224,271,348.25 462,403,813.87
listed with “-”)
Add: Non-operating income 39,354,859.38 17,819,973.11
Less: Non-operating expense 9,242,074.53 8,337,604.52
Including: Disposal loss of
9,188,914.83 7,667,031.42
non-current asset
IV. Total Profit (Loss is listed
254,384,133.10 471,886,182.46
with “-”)
Less: Income tax expense 63,361,751.94 118,333,075.76
V. Net profit (Net loss is listed
191,022,381.16 353,553,106.70
with “-”)
Including: net profit realized
before consolidation by
mergered party
Net profit attributable to
191,022,381.16 354,185,295.46
owner’s of parent company
Minority shareholders’ gains
0.00 -632,188.76
and losses
VI. Earnings per share -- --
i. Basic earnings per share 0.48 0.89
ii. Diluted earnings per share 0.48 0.89
VII. Other consolidated
income
VIII. Total comprehensive
191,022,381.16 353,553,106.70
income
Total consolidated income
attributable to owners of parent 191,022,381.16 354,185,295.46
company
Total consolidated income
attributable to minority -632,188.76
shareholders
Legal representative: Zhang Xingfu
Person in charge of accounting works: Xu Guojian
Person in charge of accounting institution: Wang Wuping
4. Profit Statement of parent company
Unit: RMB
Items Note Amount in this period Amount in last period
I. Operating income 5,063,634,065.62 4,311,491,445.33
17
Shandong Airlines Co., Ltd. Summary of Semi-Annual Report 2012
Less: operating cost 4,092,363,922.98 3,320,114,273.92
Operating tax and extras 168,057,847.51 142,582,912.25
Sales expenses 353,472,948.60 272,496,547.90
Administration expenses 108,914,492.24 76,626,822.73
Financial expenses 130,258,347.24 43,123,703.92
Losses of devaluation of asset 431,688.81 790,630.51
Add: Changing income of fair
-4,237,979.04 -2,006,791.66
value(Loss is listed with “-”)
Investment income (Loss is
14,378,505.19 7,275,314.20
listed with “-”)
Including: Investment income
on affiliated company and joint
venture
II. Operating profit (Loss is
220,275,344.39 461,025,076.64
listed with “-”)
Add: Non-operating income 39,354,859.38 17,819,973.11
Less: Non-operating expense 9,234,739.82 7,868,539.08
Including: Disposal loss of
9,188,914.83 7,667,031.42
non-current asset
III. Total Profit (Loss is listed
250,395,463.95 470,976,510.67
with “-”)
Less: Income tax expense 62,524,959.43 117,744,127.66
IV. Net profit (Net loss is listed
187,870,504.52 353,232,383.01
with “-”)
V. Earnings per share -- --
i. Basic earnings per share
ii. Diluted earnings per share
VI. Other consolidated income
VII. Total comprehensive
187,870,504.52 353,232,383.01
income
5. Consolidated Cash Flow Statement
Unit: RMB
Item Amount in this period Amount in last period
I. Cash flows arising from
operating activities:
Cash received from selling
commodities and providing labor 5,013,983,191.91 4,311,495,703.81
services
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
Net increase of insured
savings and investment
Net increase of disposal of
18
Shandong Airlines Co., Ltd. Summary of Semi-Annual Report 2012
transaction financial asset
Cash received from interest,
commission charge and
commission
Net increase of capital
borrowed
Net increase of returned business
capital
Write-back of tax received
Other cash received concerning
73,675,623.65 64,896,819.96
operating activities
Subtotal of cash inflow arising
5,087,658,815.56 4,376,392,523.77
from operating activities
Cash paid for purchasing
commodities and receiving labor 3,296,356,585.51 2,561,325,472.28
service
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 599,918,898.91 501,914,224.17
Taxes paid 486,940,267.23 453,095,121.29
Other cash paid concerning
62,953,082.50 26,736,517.36
operating activities
Subtotal of cash outflow arising
4,446,168,834.15 3,543,071,335.10
from operating activities
Net cash flows arising from
641,489,981.41 833,321,188.67
operating activities
II. Cash flows arising from
investing activities:
Cash received from recovering
investment
Cash received from investment
income
Net cash received from disposal
of fixed, intangible and other 38,876.45 167,143.06
long-term assets
Net cash received from
disposal of subsidiaries and other
units
Other cash received concerning
0.00 0.00
investing activities
Subtotal of cash inflow from
38,876.45 167,143.06
investing activities
Cash paid for purchasing fixed,
intangible and other long-term 832,707,582.78 555,500,516.86
assets
Cash paid for investment 12,255,000.00
19
Shandong Airlines Co., Ltd. Summary of Semi-Annual Report 2012
Net increase of mortgaged loans
Net cash received from
subsidiaries and other units
Other cash paid concerning
916,894.81 2,914,720.42
investing activities
Subtotal of cash outflow from
833,624,477.59 570,670,237.28
investing activities
Net cash flows arising from
-833,585,601.14 -570,503,094.22
investing activities
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 414,290,000.00 417,738,410.49
Cash received from issuing bonds 500,000,000.00
Other cash received concerning
7,500,000.00 66,740,000.00
financing activities
Subtotal of cash inflow from
921,790,000.00 484,478,410.49
financing activities
Cash paid for settling debts 281,339,544.44 484,958,885.00
Cash paid for dividend and profit
239,464,255.88 189,987,656.41
distributing or interest paying
Including: Dividend and profit of
minority shareholder paid by
subsidiaries
Other cash paid concerning
104,326,674.86 83,410,798.44
financing activities
Subtotal of cash outflow from
625,130,475.18 758,357,339.85
financing activities
Net cash flows arising from
296,659,524.82 -273,878,929.36
financing activities
IV. Influence on cash and cash
equivalents due to fluctuation in 1,101,794.40 -78,954.73
exchange rate
V. Net increase of cash and cash
105,665,699.49 -11,139,789.64
equivalents
Add: Balance of cash and cash
240,185,747.48 148,606,284.51
equivalents at the period -begin
VI. Balance of cash and cash
345,851,446.97 137,466,494.87
equivalents at the period -end
6. Cash Flow Statement of parent company
Unit: RMB
Item Amount in this period Amount in last period
I. Cash flows arising from
operating activities:
Cash received from selling
commodities and providing labor 5,004,954,866.01 4,301,263,995.38
services
Write-back of tax received
Other cash received 68,845,352.66 64,884,259.15
20
Shandong Airlines Co., Ltd. Summary of Semi-Annual Report 2012
concerning operating activities
Subtotal of cash inflow arising
5,073,800,218.67 4,366,148,254.53
from operating activities
Cash paid for purchasing
commodities and receiving labor 3,294,108,050.48 2,561,230,007.91
service
Cash paid to/for staff and
597,587,653.06 499,680,602.95
workers
Taxes paid 484,651,323.16 450,288,640.47
Other cash paid concerning
70,269,944.30 34,349,045.94
operating activities
Subtotal of cash outflow arising
4,446,616,971.00 3,545,548,297.27
from operating activities
Net cash flows arising from
627,183,247.67 820,599,957.26
operating activities
II. Cash flows arising from
investing activities:
Cash received from recovering
investment
Cash received from investment
income
Net cash received from disposal
of fixed, intangible and other 38,876.45 167,143.06
long-term assets
Net cash received from
disposal of subsidiaries and other
units
Other cash received
concerning investing activities
Subtotal of cash inflow from
38,876.45 167,143.06
investing activities
Cash paid for purchasing
fixed, intangible and other 821,092,157.42 546,245,829.36
long-term assets
Cash paid for investment 12,255,000.00
Net cash received from
subsidiaries and other units
Other cash paid concerning
916,894.81 2,914,720.42
investing activities
Subtotal of cash outflow from
822,009,052.23 561,415,549.78
investing activities
Net cash flows arising from
-821,970,175.78 -561,248,406.72
investing activities
III. Cash flows arising from
financing activities
Cash received from
absorbing investment
Cash received from loans 414,290,000.00 417,738,410.49
21
Shandong Airlines Co., Ltd. Summary of Semi-Annual Report 2012
Cash received from issuing
500,000,000.00
bonds
Other cash received
7,500,000.00 66,740,000.00
concerning financing activities
Subtotal of cash inflow from
921,790,000.00 484,478,410.49
financing activities
Cash paid for settling debts 281,339,544.44 484,958,885.00
Cash paid for dividend and
profit distributing or interest 239,464,255.88 189,167,656.41
paying
Other cash paid concerning
104,326,674.86 83,410,798.44
financing activities
Subtotal of cash outflow from
625,130,475.18 757,537,339.85
financing activities
Net cash flows arising from
296,659,524.82 -273,058,929.36
financing activities
IV. Influence on cash and cash
equivalents due to fluctuation in 1,101,794.40 -78,954.73
exchange rate
V. Net increase of cash and cash
102,974,391.11 -13,786,333.55
equivalents
Add: Balance of cash and
cash equivalents at the period 235,921,301.34 143,930,783.00
-begin
VI. Balance of cash and cash
338,895,692.45 130,144,449.45
equivalents at the period -end
7. Consolidated Statement on Changes of Owners' Equity
Amount in this period
Unit: RMB
Amount in this period
Owners' equity attributable to the parent company
Paid-up General Total
Items Less: Reasona Minority’s
capital Capital Surplus risk Retaine owners’
Treasury ble Others equity
(Share reserves reserves provisio d profit equity
Stock reserve
capital) n
I. Balance at the end of last 400,000 75,410,3 199,414 1,374,42 2,049,244,
year ,000.00 63.70 ,021.75 0,534.36 919.81
Add: Changes of accounting
policy
Error correction of the last
period
Others
II. Balance at the beginning of 400,000 75,410,3 199,414 1,374,42 2,049,244,
this year ,000.00 63.70 ,021.75 0,534.36 919.81
III. Increase/ Decrease in this
31,022,3 31,022,381
year (Decrease is listed
81.16 .16
with'"-")
191,022, 191,022,38
(i) Net profit
381.16 1.16
(ii) Other consolidated income
191,022, 191,022,38
Subtotal of (i)and (ii)
381.16 1.16
22
Shandong Airlines Co., Ltd. Summary of Semi-Annual Report 2012
(III) Owners' devoted and
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
decreased capital
1. Owners' devoted capital
2. Amount calculated into
owners' equity paid in shares
3. Others
-160,00 -160,000,0
(IV)Profit distribution 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0,000.00 00.00
1. Withdrawal of surplus
reserves
2. Withdrawal of general risk
provisions
3. Distribution for owners -160,00 -160,000,0
(shareholders) 0,000.00 00.00
4. Others
(V) Carrying forward internal
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
owners' equity
1. Capital reserves conversed to
capital (share capital)
2. Surplus reserves conversed
to capital (share capital)
3. Remedying loss with
surplus reserve
4. Others
(VI) Reasonable reserve
1. Withdrawal in this period
2. Usage in this period
(VII) Other
IV. Balance at the end of the 400,000 75,410,3 199,414 1,405,44 2,080,267,
report period ,000.00 63.70 ,021.75 2,915.52 300.97
Amount in last period
Unit: RMB
Amount in last period
Owners' equity attributable to the parent company
Paid-up General Total
Items Less: Reasona Minority’s
capital Capital Surplus risk Retaine owners’
Treasur ble Others equity
(Share reserves reserves provisio d profit equity
y Stock reserve
capital) n
I. Balance at the end of last 400,000 84,050,1 122,944 799,664, 13,462,27 1,420,121,
year ,000.00 62.84 ,754.89 252.17 1.78 441.68
Add: retroactive adjustment
arising from enterprise
consolidation under the same
control
Add: Changes of accounting
policy
Error correction of the last
period
Others
II. Balance at the beginning of 400,000 84,050,1 122,944 799,664, 13,462,27 1,420,121,
this year ,000.00 62.84 ,754.89 252.17 1.78 441.68
III. Increase/ Decrease in this
-8,639,7 76,469, 574,756, -13,462,2 629,123,47
year (Decrease is listed
99.14 266.86 282.19 71.78 8.13
with'"-")
771,225, -453,076. 770,772,47
(i) Net profit
549.05 79 2.26
(ii) Other consolidated income
Subtotal of (i)and (ii) 771,225, -453,076. 770,772,47
23
Shandong Airlines Co., Ltd. Summary of Semi-Annual Report 2012
549.05 79 2.26
(III) Owners' devoted and -8,639,7 -13,009,1 -21,648,99
0.00 0.00 0.00 0.00 0.00 0.00 0.00
decreased capital 99.14 94.99 4.13
1. Owners' devoted capital
2. Amount calculated into
owners' equity paid in shares
-8,639,7 -13,009,1 -21,648,99
3. Others
99.14 94.99 4.13
76,469, -196,46 -120,000,0
(IV)Profit distribution 0.00 0.00 0.00 0.00 0.00 0.00 0.00
266.86 9,266.86 00.00
1. Withdrawal of surplus 76,469, -76,469,
reserves 266.86 266.86
2. Withdrawal of general risk
provisions
3. Distribution for owners -120,00 -120,000,0
(shareholders) 0,000.00 00.00
4. Others
(V) Carrying forward internal
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
owners' equity
1. Capital reserves conversed to
capital (share capital)
2. Surplus reserves conversed
to capital (share capital)
3. Remedying loss with
surplus reserve
4. Others
(VI) Reasonable reserve
1.Withdrawal in this period
2.Usage in this period
(VII) Other
IV. Balance at the end of the 400,000 75,410,3 199,414 1,374,42 2,049,244,
report period ,000.00 63.70 ,021.75 0,534.36 919.81
8. Statement on Changes of Owners' Equity of Parent Company
Amount in this period
Unit: RMB
Amount in this year
Paid-up
Less: General Total
Item capital Capital Reasonabl Surplus Retained
Treasury risk owners’
(Share reserves e reserve reserves profit
Stock reserve equity
capital)
400,000,00 86,911,168 198,753,31 1,363,274, 2,048,938,
I. Balance at the end of last year
0.00 .71 7.22 341.67 827.60
Add: Changes of accounting
policy
Error correction of the last period
Others
II. Balance at the beginning of 400,000,00 86,911,168 198,753,31 1,363,274, 2,048,938,
this year 0.00 .71 7.22 341.67 827.60
III. Increase/ Decrease in this 27,870,504 27,870,504
year (Decrease is listed with'"-") .52 .52
187,870,50 187,870,50
(i) Net profit
4.52 4.52
(ii) Other consolidated income
187,870,50 187,870,50
Subtotal of (i)and (ii)
4.52 4.52
24
Shandong Airlines Co., Ltd. Summary of Semi-Annual Report 2012
(III) Owners' devoted and
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
decreased capital
1. Owners' devoted capital
2. Amount calculated into
owners' equity paid in shares
3. Others
-160,000,0 -160,000,0
(IV) Profit distribution 0.00 0.00 0.00 0.00 0.00 0.00
00.00 00.00
1. Withdrawal of surplus reserves
2. Withdrawal of general risk
reserve
3. Distribution for owners -160,000,0 -160,000,0
(shareholders) 00.00 00.00
4. Others
(V) Carrying forward internal
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
owners' equity
1. Capital reserves conversed to
capital (share capital)
2. Surplus reserves conversed to
capital (share capital)
3. Remedying loss with surplus
reserves
4. Others
(VI) Reasonable reserve
1. Withdrawal in this period
2. Usage in this period
(VII) Other
IV. Balance at the end of the 400,000,00 86,911,168 198,753,31 1,391,144, 2,076,809,
report period 0.00 .71 7.22 846.19 332.12
Amount in last period
Unit: RMB
Amount in last year
Paid-up
Less: General Total
Item capital Capital Reasonabl Surplus Retained
Treasury risk owners’
(Share reserves e reserve reserves profit
Stock reserve equity
capital)
400,000,00 84,050,162 122,284,05 795,050,93 1,401,385,
I. Balance at the end of last year
0.00 .84 0.36 9.95 153.15
Add: Changes of accounting
policy
Error correction of the last period
Others
II. Balance at the beginning of 400,000,00 84,050,162 122,284,05 795,050,93 1,401,385,
this year 0.00 .84 0.36 9.95 153.15
III. Increase/ Decrease in this 2,861,005. 76,469,266 568,223,40 647,553,67
year (Decrease is listed with'"-") 87 .86 1.72 4.45
764,692,66 764,692,66
(i) Net profit
8.58 8.58
(ii) Other consolidated income
764,692,66 764,692,66
Subtotal of (i)and (ii)
8.58 8.58
(III) Owners' devoted and 2,861,005. 2,861,005.
0.00 0.00 0.00 0.00 0.00 0.00
decreased capital 87 87
1. Owners' devoted capital
2. Amount calculated into
owners' equity paid in shares
25
Shandong Airlines Co., Ltd. Summary of Semi-Annual Report 2012
2,861,005. 2,861,005.
3. Others
87 87
76,469,266 -196,469,2 -120,000,0
(IV) Profit distribution 0.00 0.00 0.00 0.00 0.00
.86 66.86 00.00
76,469,266 -76,469,26
1. Withdrawal of surplus reserves
.86 6.86
3. Withdrawal of general risk
reserve
3. Distribution for owners -120,000,0 -120,000,0
(shareholders) 00.00 00.00
4. Others
(V) Carrying forward internal
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
owners' equity
1. Capital reserves conversed to
capital (share capital)
2. Surplus reserves conversed to
capital (share capital)
3. Remedying loss with surplus
reserves
4. Others
(VI) Reasonable reserve
1. Withdrawal in this period
2. Usage in this period
(VII) Other
IV. Balance at the end of the 400,000,00 86,911,168 198,753,31 1,363,274, 2,048,938,
report period 0.00 .71 7.22 341.67 827.60
(III) Notes to financial statement
1. Changes of main accounting policy and accounting estimation as well as accounting errors
modification and figures
(1) Changes of accounting policy
Is there any change on accounting policy in reporting period?
□ Yes √ No
(2) Changes of accounting estimation
Is there any change on main accounting estimation in reporting period?
□ Yes √ No
(3) Accounting errors modification
Is there has previous accounting errors modified in reporting period?
□ Yes √ No
2. Reasons of consolidation range changed in aspect of consolidation statement
Consolidation range has the same as last period
3. If Non-standard Unqualified Opinion is supplied, list the related notes to the matters
involved.
Board of Directors of
Shandong Airlines Company Limited
August 27, 2012
26