ShanDong Airlines Co, ltd. 2012 SEMI-ANNUAL Financial Report
(I) Auditing opinion
Audited the semi-annual report or not
□ Yes √No □Non-applicable
(II) Financial statement
Whether consolidated statement or not:
√Yes □No □Non-applicable
Unless otherwise, currency for this statement refers to RMB (Yuan)
Currency used in note of financial statement is RMB (Yuan)
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
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:
1
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
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
2
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
Total liabilities 8,424,918,360.26 7,723,740,626.16
Owners 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
3
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 owners equity
2,080,267,300.97 2,049,244,919.81
attributable to parent company
Minority interests
Total owners equity(or
2,080,267,300.97 2,049,244,919.81
shareholders equity)
Total liabilities and owners
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
investment
4
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
5
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
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
Owners 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 owners equity(or
2,076,809,332.12 2,048,938,827.60
shareholders equity)
Total liabilities and owners
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
6
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
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
owners 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
7
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
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
8
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
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
9
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
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
10
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
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
38,876.45 167,143.06
of fixed, intangible and other
11
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
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
12
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 Minoritys
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
with'"-") 81.16 .16
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
(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
13
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 Minoritys
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
with'"-") 99.14 266.86 282.19 71.78 8.13
771,225, -453,076. 770,772,47
(i) Net profit
549.05 79 2.26
(ii) Other consolidated income
771,225, -453,076. 770,772,47
Subtotal of (i)and (ii)
549.05 79 2.26
(III) Owners' devoted and
0.00 -8,639,7 0.00 0.00 0.00 0.00 0.00 0.00 -13,009,1 -21,648,99
decreased capital
14
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
15
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
(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
16
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
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. Corporation profile
1. Company’s history
17
Shandong Airlines Co., Ltd. (hereafter, the Company) is a foreign-invested limited liability company incorporated in the
Peoples Republic of China. The Company was incorporated through the restructuring project jointly initiated by Shandong
Airlines Group Co., Ltd. (hereafter, SDA Group), Inspur Co., Ltd. (previously known as Inspur Electronic Information
Industry Group Company (浪潮电子信息产业集团公司)), Shandong Hualu Group Co., Ltd, Shandong Group Corp. of
Fisheries Enterprises and Luyin Investment Group ( 鲁 银 投 资 集 团 股 份 有 限 公 司 ) following the approval
(LuTiGaiQiZi(1999)No.88 (鲁体改企字（1999）第 88 号)) granted by the Economic Reform Commission of Shandong
Province (山东省经济体制改革委员会) on July 29th, 1999.
Shandong Airlines Group Co., Ltd. acquired 259,204,000 state-owned corporate shares (国有法人股), with CNY 1.00 at par,
of the Company by transferring its air transportation operation and the related assets and liabilities to the Company on
November 25th, 1999. Inspur Co., Ltd., Shandong Hualu Group Co., Ltd. and Shandong Group Corp. of Fisheries Enterprises
each acquired 199,000 state-owned corporate shares, with CNY 1.00 at par, by cash investment of CNY 200,000.00 each on
November 26th, 1999. Luyin Investment Group acquired 199,000 domestic corporate shares (国内法人股), with CNY 1.00
at par, by cash investment of CNY 200,000.00 on November 26th, 1999.
The Company issued 140,000,000 domestically listed shares denominated in foreign currency (境内上市外资股) (hereafter,
B share(s)), with par value at CNY 1.00 each and issue price at HKD 1.58 each, on August 28th, 2000 upon the approval
(ZhengJianFaXingZi[2000]No.116 (证监发行字[2000]116 号)) granted by the China Securities Regulatory Commission on
August 22nd, 2000; and, the Company was listed on the Shenzhen Stock Exchange on September 12th, 2000. Immediately
after the issuance of the B shares, the capital of the Company increased to CNY 400,000,000.00.
The Agreement of Share Transfer 《股份转让协议》 signed by SDA Group and China National Aviation Holding Company
(hereafter, China Aviation Group) on February 28th, 2004 authorised the transfer of 91,200,000 shares of the Company,
equal to 22.8% shareholding, from SDA Group to China Aviation Group. Immediately after the share transfer, SDA Groups
shareholding in the Company was 42.00%. In November 2004, the Board of Directors of the Company, in accordance with
the approval (GuoZiChanQuan[2004]No.956 (国资产权[2004]956 号： 关于中国航空集团公司将受让山东航空股份有限
公司国有股的合同实施转让有关问题的批复》)) issued by the State-owned Assets Supervision and Administration
Commission of the State Council, authorised China Aviation Group to transfer the state-owned corporate shares received
from SDA Group to Air China Co., Ltd. (hereafter, Air China). As so provided in GuoZiChanQuan[2004]No.956, the rights
and obligation attributable to China Aviation Group as specified in the Agreement of Share Transfer shall be afforded by Air
China. The change of share ownership was registered at the China Securities Depository and Clearing Corporation Limited
Shenzhen Office by SDA Group and Air China on December 3rd, 2004; and, 91,200,000 shares of the Company then became
held by Air China.
Legal representative of the Company: ZHANG, Xingfu
Place of registration: Shandong Jinan Yaoqiang International Airport
Address of headquarter: Shandong Airlines Centre, 5746 – East 2nd Ring Road, Jinan, Shandong
2. Industry of operation
The Company operates in the industry of transportation.
3. Operating capacity
The Company is permitted to undertake international and domestic passenger and cargo transportation, hotel and beverage
related operation (limited to operation through branch); provision of aircraft maintenance, training of civil aviation pilots and
air crew, insurance brokerage (limited to air accident insurance, with period of operation valid until September 3 rd, 2012);
inter-airline agenting, and principal operation related ground services; sales of airborne material and equipments, non-food
grocery, art work, souvenir, etc.; retailing of tobacco products (limited to Qingdao Red-Crowned Crane Hotel); lease of
18
airborne material and equipments; business services; conference services; transportation agency; air cargo storage; and
aviation pilot provision (for other domestic airlines). The operating activities listed herein does not involve operation related
to commodity that are subject to State Administered Trading (国营贸易管理).
4. Principal products (and/or services)
The principal service supplied by the Company is domestic air transportation.
IV. Summary of significant accounting policies and estimates and correction of errors
1. Bases for preparation of the financial statements
The financial statements of the Company have been prepared on the going concern basis with reference to the actual
occurrence of transactions and events and in accordance with the China Enterprise Accounting Standards (CAS) issued by
the Ministry of Finance on 15th February 2006 and the significant accounting policies and estimates as set out in Note 2.
2. Declaration of Compliance with the Enterprise Accounting Standards
The financial statements of the Company have been prepared in accordance with the Enterprise Accounting Standards to
present truly and completely the financial position, result of operation and cash flow and the relevant information of the
Company.
3. Accounting year
The Companys accounting year is the calendar year, i.e. from 1 January to 31 December each year.
4. Presentation (functional) currency
The presentation (functional) currency of the Company is Chinese Yuan (hereafter, CNY).
5. Business acquisitions
(1) Acquiring business under common control
The Company measures the identifiable assets acquired and liabilities assumed at their acquisition-date book values in the
accounts of the acquiree. The excess of the consideration transferred in the form of book value or shares issued over the
acquisition-date book values in the acquirers accounts of the identifiable net assets acquired is debited to Capital reserves
and to undistributed profits where the total value of Capital reserves is insufficient.
(2) Acquiring business not under common control
The Company measures the identifiable assets acquired and the liabilities assumed at their acquisition-date fair values.
Goodwill as of the acquisition date measured as the excess of the amount of the total consideration paid for the acquisition
measured in accordance with s11, Ch. 3, CAS 20 over the net of the acquisition-date amounts of the identifiable assets
acquired and the liabilities assumed measured in accordance with s14, Ch.3, CAS 20 is recognized by the Company, if the
later exceeds the former (i.e. negative excess), the Company recognizes the resulting gain in profit or loss on the acquisition
date after reviewing their fair values and confirming the negative excess.
6. Consolidated financial statements
(1) How to consolidate financial statements
① Scope of consolidated financial statements
Consolidated financial statements are prepared on the basis of control existence in accordance with CAS 33 issued by the
19
Ministry of Finance in February 2006. The consolidated financial statements of the Company include all subsidiaries and the
entities, which are established for specified purposes, either directly or indirectly controlled by the Company and the
Company itself. The Company has control over an entity where the Company has the power to govern the financial and
operating policies of the entity under a statute or an agreement and is able to obtain economic benefit from the entitys
operation by virtue of that power. Where it is clearly demonstrated that the Companys investment in an entity does not
constitute control over the entity, the Company excludes the entity from consolidation.
② Purchase and sales of ordinary shares of subsidiaries
The Company determines the date of purchase and sales of the ordinary shares of subsidiaries on the basis of the actual
occurrence of transfer of the risks attached to and proceeds associated with the shares respectively. The respective post- or
pre-transaction-date operation results and cash flows of the subsidiary acquired or disposed in the course of the combination
of businesses not under common control are accounted for in the consolidated income statement and cash flow statement.
The operation results and cash flows of the subsidiary, which occur after the start date of the accounting period in which the
subsidiary is acquired and prior to the disposal date, acquired in the course of the combination of businesses under common
control are accounted for and separately presented in the consolidated income statement and cash flow statement with
comparables adjusted accordingly.
The excess of the value of a long-term equity investment, recognized and measured in accordance with CAS 2, in a
subsidiary arising from the purchase of small amount of the ordinary shares of the subsidiary over the Companys share of
the net fair value of the subsidiarys identifiable assets and liabilities as from the purchase date is debited to Capital reserves,
and to Undistributed profits where the total value of Capital reserves is insufficient.
③ Uniform accounting policies
If a subsidiary uses accounting policies other than those adopted in the consolidated financial statements for like transactions
and events in similar circumstances, appropriate adjustments are made to its financial statements in preparing the
consolidated financial statements; the adjustments are conducted also with reference to the acquisition-date fair values of the
identifiable assets acquired and the liabilities assumed from the subsidiary measured in accordance with s14, Ch.3, CAS 20
where the subsidiary is acquired in the course of the combination of businesses not under common control.
④ Consolidation procedures
Intragroup balances and transactions are eliminated in full in the preparation of consolidated financial statements.
Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the Companys
ownership interests in them. Non-controlling interests are debited by the excess, if any, of the loss attributable to
non-controlling shareholders over their share of the net fair value of the subsidiarys identifiable assets and liabilities where
they are able and obliged to contribute to the excess; the excess is otherwise attributable to the Company.
(2) Disclosure o accounting correspondence to buying and selling or selling and buying equity of the same subsidiary
company in 2 consecutive accounting years
Nil
7. Cash equivalents
Cash equivalents are short-term (usually with a maturity date within three months from the date of acquisition), highly liquid
investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes
in value.
8. Foreign currency transactions and foreign currency translation
(1) Foreign currency transactions
20
The Companys foreign currency transactions are recorded, on initial recognition in the reporting (functional) currency, by
applying to the foreign currency amount the middle exchange rate quoted by the Peoples Bank of China (hereafter, the (spot)
exchange rate) between the reporting (functional) currency and the foreign currency at the date of the transaction.
Foreign currency monetary items as at the balance sheet date are translated using the balance-sheet-date spot exchange rate;
non-monetary items as at the balance sheet date that are measured in terms of historical cost in foreign currencies are
translated using the transaction-date exchange rates with no adjustment made to the recorded amounts on initial recognition
in the reporting (functional) currency; non-monetary items as at the balance sheet date that are measured at fair value in
foreign currencies are translated using the exchange rates at the dates when the fair values were determined. Exchange
differences arising on translating monetary or non-monetary items at rates different from those at which they were translated
on initial recognition during the period or in previous financial statements are recognized directly or as fair value
adjustments in profit or loss in the period in which they arise except for monetary items that satisfy the criteria for borrowing
costs capitalization.
(2) Foreign currency translation
① Assets, liabilities and all Shareholders equity items as at the balance sheet date except undistributed profits are
translated using the balance-sheet-date spot exchange rates.
② Income and expenses are translated using the transaction-date exchange rates.
Exchange differences arising from the translation methods specified in paragraph 2.8.2① and ② are separately presented in
Shareholders equity.
③ The cash flows of a foreign subsidiary are translated at the exchange rates at the dates of the cash flows. The effect of
exchange rate changes on cash and cash equivalents held or due in foreign currencies is reported in the cash flow statement
by presenting separately the amount of the unrealized exchange differences arising from changes in foreign currency
exchange rates
9. Financial instruments
(1) Categorizations of Financial instruments
The Company categories its financial assets and financial liabilities, with reference to their objectives of investments and
economic nature, as financial assets or financial liabilities at fair value through profit or loss, held-to-maturity investments,
loans and receivables, available-for-sale financial assets, and other financial liabilities.
① Financial assets or financial liabilities at fair value through profit or loss include the financial assets or financial
liabilities classified as held for trading and the financial assets or financial liabilities designated by the Company as at fair
value through profit or loss on their initial recognition.
A financial asset or financial liability is classified as held for trading if it meets either of the following conditions:
a. it is acquired or incurred principally for the purpose of selling or repurchasing it in the near term;
b. on initial recognition it is part of a portfolio of identified financial instruments that are managed together and for which
there is evidence of a recent actual pattern of short-term profit-taking; or
c. it is a derivative (except for a derivative that is a designated and effective hedging instrument, a financial guarantee
contract, or linked to and only settled by delivery of an equity instrument that does not have a quoted market price in an
active market and whose fair value cannot be reliably measured).
A financial asset or financial liability is designated by the Company as at fair value through profit or loss if it meets either of
the following conditions:
21
a. the designation eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise
arise from measuring assets or liabilities or recognizing the gains and losses on them on different bases; or
b. a group of financial assets, financial liabilities or both is managed and its performance is evaluated on a fair value basis,
in accordance with an officially documented risk management or investment strategy, and information about the group is
provided internally on that basis to the Companys key management personnel.
② Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and fixed
maturity that the Company has the positive intention and ability to hold to maturity, which include principally fixed-rate
treasury bonds and floating-rate corporate bonds that the Company has the positive intention and ability to hold to maturity.
③ Receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active
market, which include principally accounts receivables arising from sales of products and provisions of services by the
Company and other receivables.
④ Available-for-sale financial assets are those non-derivative financial assets that are designated as available for sale on
their initial recognition or are not categorized as loans and receivables, held-to-maturity investments or financial assets at
fair value through profit or loss.
⑤ Other financial liabilities are financial liabilities that are not categorized as financial liabilities at fair value through
profit or loss.
(2) Recognize conditions and measure methods of financial instruments
When a financial asset or financial liability is recognized initially, the Company measures it at its fair value plus, in the case
of a financial asset or financial liability not at fair value through profit or loss, transaction costs that are directly attributable
to the acquisition or issue of the financial asset or financial liability; transaction costs attributable to the acquisition or issue
of the financial asset or financial liability at fair value through profit or loss are accounted for through profit or loss for the
current period.
The Company subsequently measures financial assets and financial liabilities according to the following procedures:
① Financial assets or financial liabilities are subsequently measured at fair value through profit or loss at their fair value,
with gains or losses arising from changes in fair value or de-recognition accounted for through profit or loss for the current
period.
② Held-to-maturity investments are subsequently measured at amortized cost using the effective interest method, with
gains or losses arising from de-recognition, impairment or amortization accounted for through profit or loss for the current
period.
③ Receivables are subsequently measured at amortized cost using the effective interest method, with gains or losses
arising from de-recognition, impairment or amortization accounted for through profit or loss for the current period.
④ Available-for-sale financial assets are subsequently measured at their fair value, with gains or losses arising from
changes in fair value recognized in Capital reserves. The difference between the disposal proceeds and carrying value of an
available-for-sale financial asset on its disposal is recognized as investment gain or loss, with the cumulative gains or losses
recognized in Capital reserves de-recognized from Capital reserves and re-recognized as investment gains or losses.
Impairment losses and exchange differences of available-for-sale financial assets, if any, are accounted for through profit or
loss for the current period. Interests and dividends arising from the possession of available-for-sale financial assets, if any,
are recognized as investment gains.
⑤ Other financial liabilities and a instrument that is linked to and only settled by delivery of an equity instrument that
does not have a quoted market price in an active market and whose fair value cannot be reliably measured are subsequently
22
measured at cost.
A financial guarantee contract or a loan that bears an off-market interest rate, which are not designated by the Company as at
fair value through profit or loss, are subsequently measured at the higher of:
a. the value specified by CAS 13 Contingencies; and
b. the residual value after deducting the cumulative amortization determined in accordance with CAS 14 Revenue from
the value recognized on its initial recognition.
Other financial liabilities are subsequently measured at amortized cost using the effective interest method, with gains or
losses arising from de-recognition, impairment or amortization accounted for through profit or loss for the current period.
⑥ Fair value is the amount for which an asset could be exchanged or a liability settled between knowledgeable, willing
parties in an arms length transaction. The parties to an arms length transaction shall be going concerns, not subject to or
intended to enter the procedures of liquidation or significant reduction in operating capacity, or forced to enter the
transaction. The fair value of a financial asset or financial liability for which there is an active market shall be measured at
the quoted market price in the active market; the fair value of a financial asset or financial liability for which there is not an
active market shall be established by the Company using a valuation technique.
The Company measures initially and subsequently the fair value of an interest rate swap at the value of a competitors
interest rate swap quoted by a recognized financial institution as at the Companys balance sheet date in accordance with the
principle of consistency.
⑦ The residual cost of a financial asset is the residual value after deducting the sum of impairment losses and the
principal amount that has been repaid from the sum of its value measured on its initial recognition and the cumulative
amortization of the difference between its value measured on its initial recognition and its value on its maturity determined
using the effective interest method. The residual cost of a financial liability is the residual value after deducting the sum of
the principal amount that has been repaid and the cumulative amortization of the difference between its value measured on
its initial recognition and its value on its maturity determined using the effective interest method from its value measured on
its initial recognition.
⑧ The effective interest rate method is a valuation method for determining the residual value and interest income or/and
expense of a financial instrument (or a group of financial instruments) using the effective interest rate. An effective interest
rate is the interest rate used to discount the cash flows of a financial instrument (or a group of financial instruments) over its
expected life, or a shorter period if it is relevant, to determine its current carrying value. The effective interest rate applicable
to a financial instrument (or a group of financial instruments) shall be determined with reference to its future cash flows
estimated by taking into account the whole of its contract terms (including but not limited to early repayment rights, call
options and option equivalents, but excluding future credit losses).
(3) Recognize conditions and measure methods of transferred financial assets
① The Company de-recognizes a financial asset if it meets either of the following conditions:
a. the contractual rights to the cash flows from the financial asset expire;
b. the financial asset has been transferred and all the risks and rewards of ownership of the financial asset have been
substantially transferred to the transferee; or
c. the financial asset has been transferred and the Company has neither transferred nor retained substantially all the risks
and rewards of ownership of the financial asset and not retained control of the financial asset.
② Where the transfer of the whole of a financial asset satisfies the conditions for de-recognition set out in paragraph
23
2.9.3①, the Company recognizes through profit or loss for the current period the difference between:
a. the carrying value of the financial asset; and
b. the sum of the proceeds from the transfer and the cumulative gains or losses recognized in Shareholders equity.
③ Where the transfer of a part of a financial asset satisfies the conditions for de-recognition set out in paragraph 2.9.3①,
the fair value of the whole of the financial asset is apportioned accordingly to the transferred part and the part not transferred;
and, the Company recognizes through profit or loss for the current period the difference between:
a. the carrying value of the transferred part of the financial asset; and
b. the sum of the proceeds from the transfer and the cumulative gains or losses attributable to the transferred part of the
financial asset recognized in Shareholders equity.
④ If a transfer of a financial asset does not satisfy the conditions for de-recognition set out in paragraph 2.9.3①, the
Company continues to recognize the transferred asset in its entirety and recognizes a financial liability for the consideration
received. Where the Company is in continuing involvement in a transferred financial asset, the Company continues to
recognize the financial asset to the extent of its continuing involvement, and recognizes an associated financial liability.
(4) Conditions to de-recognizes financial liability
Nil
(5) Methods to confirm fair value of financial assets and financial liabilities
Fair value is the amount for which an asset could be exchanged or a liability settled between knowledgeable, willing parties
in an arms length transaction. The parties to an arms length transaction shall be going concerns, not subject to or intended
to enter the procedures of liquidation or significant reduction in operating capacity, or forced to enter the transaction. The
fair value of a financial asset or financial liability for which there is an active market shall be measured at the quoted market
price in the active market; the fair value of a financial asset or financial liability for which there is not an active market shall
be established by the Company using a valuation technique.
The Company measures initially and subsequently the fair value of an interest rate swap at the value of a competitors
interest rate swap quoted by a recognized financial institution as at the Companys balance sheet date in accordance with the
principle of consistency.
(6) Impairment of financial assets (receivables excluded)
① The company recognizes impairment of a financial asset if either of the following is objectively evidential:
a. significant financial difficulty of the issuer or obligor;
b. a breach of contract, such as a default or delinquency in interest or principal payments, by the obligor;
c. the lender, for economic or legal reasons relating to the obligors financial difficulty, granting to the obligor a
concession that the lender would not otherwise consider;
d. it becoming probable that the obligor will enter bankruptcy or other financial reorganization;
e. the disappearance of an active market for that financial asset because of significant financial difficulty of the issuer;
f. observable data indicating that there is a measurable decrease in the estimated future cash flows from a group of
financial assets since the initial recognition of those assets, although the decrease cannot yet be identified with the individual
financial assets in the group;
24
g. significant changes with an adverse effect that have taken place in the technological, market, economic or legal
environment in which the obligor operates, and indicates that the cost of the investment in the equity instrument may not be
recovered;
h. a significant or prolonged decline in the fair value of an investment in an equity instrument; or
i. other events of impairment.
② The Company assesses the occurrence of impairment of different categories of financial assets and recognizes and
measures impairment on the balance sheet date using different criteria.
a. If there is objective evidence that an impairment loss on a held-to-maturity investments has been incurred as at the
balance sheet date, the amount of the loss is measured as the difference between the assetss carrying amount and the present
value of its estimated future cash flows.
b. If there is objective evidence that the fair value of an available-for-sale financial asset has experienced a significant
decline and the decline is not temporary after considering all relevant information as at the balance sheet date, impairment
loss on the available-for-sale financial asset is recognized and the cumulative loss recognized in Shareholders equity is
reclassified from equity to profit or loss as impairment loss.
(7) For those held-to-maturity changed to available-for-sale financial assets, provide foundations for the change of
holding purpose or capability.
Nil
10. Confirmation standard and recognition method of provision for bad debts of receivables
(1) The provision of bad debts for receivables of individual significance
Individual receivables equal to or higher than 5% of total receivables are
Receivables of individual significance
classified as receivables of individual significance.
Receivables of individual significance are individually assessed for
impairment. If it is objectively evidential that a receivable of individual
Method of recognition of provision for bad debts significance is subject to impairment, the excess of the carrying amount over
for receivables of individual significance the net present value of the estimated future cash flows is recognized as
impairment loss and a provision for bad debts is recognized at the same
amount.
(2) Provision for bad debts for categorized receivables
Method of recognition
of provision for bad
Category Basis for categorizing
debts for categorized
receivables:
Receivables not individually assessed for impairment are categorized on the basis of
Categorization by Percentage of carrying credit risk. Provision for bad debts for each category of receivables is recognized at
nature of receivables amount the actual rate of loss for the previous year of the same or similar category bearing
similar credit risk characteristics after adjustment for the current year circumstances.
Categories of receivables subject to provision for bad debts by aging:
□ Applicable √ non-Applicable
Categories of receivables subject to provision for bad debts by percentage of carrying amount:
25
√ Applicable □ non-Applicable
Percentage of carrying amount for
Percentage of carrying amount for
recognition of provision for bad
Category recognition of provision for bad debts
debts applicable to accounts
applicable to other receivables
receivable (%)
Categorization by nature of receivables 5% 5%
Categories of receivables subject to provision for bad debts by other methods:
□ Applicable √ non-Applicable
(3) Receivables of individual insignificance subject to individual assessment for impairment
Justification for individual assessment for impairment:
If it is objectively evidential that a receivable of individual insignificance bears differing credit risk characteristics to other
receivables of individual insignificance, the receivable is subject to individual assessment for impairment.
Method of recognition of provision for bad debts for receivables of individual insignificance subject to individual assessment
for impairment:
The provision for bad debts for a receivable of individual insignificance subject to individual assessment for impairment is
recognized as the excess of the carrying amount over the net present value of the estimated future cash flows; an impairment
loss is recognized at the same amount.
11. Inventories
(1) Categorization of inventories
The Companys inventories include materials or supplies to be consumed by the Company in the rendering of services
during the Companys ordinary operating activities. The Company categorizes its inventories as air materials and low-value
consumables.
(2) Cost of inventories
√FIFO □ Weighted Average □ Individual Identification □ others
The cost of inventories at their acquisition is measured at their actual cost of purchase. The cost of inventories at their issue
is determined using the first-in; first-out (FIFO) cost formula.
(3) Net realizable value and impairment of inventories
① Determination of net realizable value of inventories
The net realizable value of finished goods, products and sellable materials is measured as the residual value after deducting
the estimated sales expense and related taxes and fees from the estimated selling price. The net realizable value of an item of
inventories subject to further processing is measured as the residual value after deducting the sum of the estimated costs of
completion, sales expense and related taxes and fees from the estimated selling price of the sellable item. The net realizable
value of the quantity of inventories held to satisfy firm sales or service contracts is based on the contract price. If the sales
contracts are for less than the inventory quantities held, the net realizable value of the excess is based on general selling
prices.
② Impairment of inventories
The Company measures inventories at the lower of historical costs and net realizable values as at the balance sheet date. If
26
the net realizable value is lower than the historical cost of an item of inventories as at the balance sheet date, an impairment
allowance is recognized. An impairment allowance, if any, is generally individually recognized for each type of inventories
except:
a. an individual impairment allowance, if any, is recognized for the whole category of inventories of low value and large
quantities; and
b. an individual impairment allowance, if any, is recognized for a group of inventories, which are held for the production
and sales of products of a single territory and for identical or similar usages or purposes, and which are indistinguishable
from other types of inventories within the group.
When the circumstances that previously caused inventories to be written down below cost no longer exist, the amount of the
write-down is reversed and the associated impairment allowance de-recognized and re-recognized through profit or loss for
the period in which the reversal occurs.
(4) Stocktaking
√ Perpetual Stocktaking System □ Periodic Stocktaking System □ Others
The Company adopts the perpetual stocktaking system.
(5) Amortization of low-value consumables and packaging materials
Amortization of low-value consumables: in full
Amortization of packaging materials: in full
12. Long-term equity investments
(1) Initial measurement of long-term equity investments
Long-term equity investments are initially measured using the following two methods:
① Initial measurement of long-term equity investments acquired through business combination
a. The cost of a business under common control acquired by the Company by payment in cash, non-monetary asset
transfer, or assuming the acquirers liabilities is initially measured at the carrying value of the equity instruments acquired as
at the acquisition date, with the excess of the (carrying) value of cash paid, assets transferred, or liabilities assumed over the
initially measured cost debited to Capital reserves, and to Undistributed profits where the total value of Capital reserves is
insufficient. The cost of a business under common control acquired by the Company by share issues is initially measured at
the carrying value of the equity instruments acquired as at the acquisition date, with the excess of the total value at par of
shares issued over the initially measured cost debited to Capital reserves, and to Undistributed profits where the total value
of Capital reserves is insufficient. Expenses incurred directly for the acquisition, including but not limited to audit fees,
valuation fees and legal fees, are recognized through profit or loss for the period in which the expenses are incurred.
b. The cost of a business not under common control acquired by the Company is initially measured at the fair value of
assets transferred, liabilities incurred or assumed, or shares issued for the acquisition as at the transaction date. The excess of
the initially measured cost over the net of the carrying values of the identifiable assets acquired and the liabilities assumed as
at the acquisition date is recognized as goodwill. The excess of the net of the carrying values of the identifiable assets
acquired and the liabilities assumed as at the acquisition date over the initially measured cost is recognized through profit or
loss for the current period in Non-operating revenue. Fees paid to advisers including auditors, solicitors, values, consultants,
etc. and other related administrative expenses are accounted for through profit or loss for the reporting period during which
they are incurred; transaction costs incurred by the acquirer directly attributable to the issuance of equity instruments or debt
instruments, which are consideration for the acquisition, are capitalized as part of the initial measurement of the relevant
27
equity instruments or debt instruments.
Differing accounting treatments shall be applied to the consolidated financial statements and the acquirers separate financial
statements for a business combination not under common control achieved in stages:
(I) In the acquirers separate financial statements, the cost of investment of a business combination not under common
control achieved in stages is initially measured as the sum of the carrying amount of the investment immediately before the
addition investment and the cost of the additional investment; if the carrying amount of the investment immediately before
the additional investment includes other comprehensive income, the related other comprehensive income (such as changes in
fair value of available-for-sale financial assets accounted for in capital reserves, hereafter the same applied) is transferred to
investment income for the reporting period during which the investment is disposed.
(II) In the consolidated financial statements, the carrying amount of the investment immediately before the additional
investment is adjusted to the fair value of the existing investment as at the acquisition date of the additional investment and
the difference between the carrying amount of the investment immediately before the addition investment and the fair value
of the existing investment as at the acquisition date of the additional investment is accounted for in investment income for
the reporting period during which the additional investment is acquired; if the carrying amount of the investment
immediately before the additional investment includes other comprehensive income, the related other comprehensive income
is transferred to investment income for the reporting period during which the additional investment is acquired. The fair
value of the existing investment as at the acquisition date of the additional investment and the gain or loss arising from the
fair value adjustment are disclosed in the notes to the financial statements.
② Initial measurement of long-term equity investments acquired not through business combination
a. The cost of a long-term equity investment acquired by the Company by payments in cash is initially measured at the
sum of the consideration transferred and the fees, taxes and necessary expenses directly attributable to the acquisition, with
the value of declared-but-unpaid cash dividends included in the consideration separately recognized as receivables.
b. The cost of a long-term equity investment acquired by the Company by share issues is initially measured at the fair
value of shares issued for the acquisition as at the issuance date.
c. The cost of a long-term equity investment acquired by the Company by direct shareholder contribution is initially
measured at the value agreed upon the investment contract or agreement, excluding a contract value or agreement value that
is inconsistent with the definition of fair value.
d. The cost of a long-term equity investment acquired by the Company by non-monetary asset transfer is initially
measured at the sum of the fair values of the assets transferred to the transferee and the taxes directly attributable to the asset
transfer, with the difference between the fair values of the assets transferred to the transferee and their carrying values as at
the transaction date recognized through profit or loss for the current period, where the exchange of non-monetary assets for
equity instruments is transacted on a commercial basis and the fair values of the assets transferred and equity instruments
acquired can be reliably measured; or, at the sum of the carrying values of the assets transferred to the transferee and the
taxes directly attributable to the asset transfer, where the exchange of non-monetary assets for equity is not on a commercial
basis or the fair values of the assets transferred or equity instruments acquired can not be reliably measured.
e. The cost of a long-term equity investment acquired by the Company through the invitees debt restructuring is initially
measured at the fair values of the equity instruments acquired, with the difference between the initially measured cost and
the carrying value of the original loans to the investee as at the restructuring date recognized through profit or loss for the
current period.
(2) Subsequent measurement and recognition and measurement of gains or losses
Long-term equity investments in subsidiaries are subsequently measured at cost. In preparing consolidated financial
28
statements, the long-term equity investments in subsidiaries are adjusted using the equity method.
Long-term equity investments which do not constitute the Companys joint control or significant influence over the investee,
of which the fair value of equity instruments is not quoted in an active market and can not be measured reliably, are
subsequently measured at cost.
Long-term equity investments which constitute the Companys joint control or significant influence over the investee are
subsequently measured by the equity method.
a. If a long-term equity investment is subsequently measured at cost, further acquisition or disposal of the investment
increases or reduces the cost of the investment accordingly; dividends or share of profits, except those included in the
consideration which has been declared but not received, are recognized through profit or loss for the current period.
b. If a long-term equity investment is subsequently measured by the equity method, its carrying value is adjusted by the
share of the invitees net profit or loss.
Gain or loss for the current period is measured at the share of the net profit or loss of the investee for the current period.
When determining the net profit or loss of the investee, where the investee adopts different accounting policies, the net profit
or loss reported by the investee is adjusted by the depreciation or amortization calculated on the basis of the fair value of the
invitees fixed assets or intangible assets as at acquisition and the impairment provisions determined on the basis of the fair
value of the relevant assets of the investee as at acquisition; transactions between the Company and associates or joint
ventures are also eliminated. The losses arising from transactions between the Company and associates or joint ventures are
wholly recognized as asset impairment if the losses meet the conditions set by CAS 8 – Asset Impairment.
Losses of a long-term equity investment reduce the carrying value of the investment to zero as the furthest. If the cumulative
value of subsequent profits of the investee becomes higher than the cumulative value of unrecognized losses, the excess of
the cumulative profits over the cumulative unrecognized losses is recognized in the carrying value of the investment.
Where a long-term equity investment existed prior to the first adoption of CAS, the excess of consideration over acquired net
assets of the investee as at the adoption date, if any, is amortized over the remaining life determined at the acquisition using
the straight line method; the amortization is recognized through profit or loss for the current period.
(3) Joint control and significant influence
① The Company has joint control over an investee if the investment meets one of the following conditions:
a. neither of the investors can individually influence the operation of the investee;
b. decisions of the invitees must be approved by the general consensus of the investors; or
c. an individual investor is authorized by an agreement of contract signed by each investor to manage the invitees
operation in accordance with the accounting and operation policies agreed by each investor.
Investors may lose joint controls over an investee where the investee is in the procedures of legal administration or
bankruptcy, or where the invitees ability to transfer economic resource to investors is severely limited for a substantial
length of time; however, if it is objectively evidential that the joint control exists, the investors shall continue to recognize
and measure the investment using the equity method.
② The Company has significant influence over an investee if:
a. the Company has delegates in the invitees Board of Directors or similar body;
b. the Company participates in the invitees policy making process, including the policy making process for declaration of
dividends;
29
c. the Company has significant transactions with the investee;
d. the Company has delegated personnel to the invitees management; or
e. the Company has provided key technology to the investee.
(4) Impairment test method and withdrawal method of impairment provision
The Company assesses the operation policies, legal environment, market and industry conditions, and profitability each
long-term equity investment individually on the balance sheet date to determine whether an investment is subject to
impairment. If the net recoverable value of an investment is lower than its carrying value as at the balance sheet date, an
impairment provision is recognized at the excess of its carrying value over the net recoverable value as at the balance sheet
date. A recognized impairment loss of an investment is not recoverable in subsequent periods.
13. Real Estate for Investment
Nil
14. Fixed Assets
(1) Recognition
A fixed asset is a tangible asset the Company holds for the purpose of production, service rendering, leasing and operation,
of which the useful life is longer than one year and which has a relatively higher value. A fixed asset is measured at the cost
of acquisition if it meets both of the following conditions:
① it is probable that the economic benefits associated with the asset will flow to the Company; and
② the cost of the asset can be measured reliably.
Subsequent expense associated with the asset, which meets the above conditions, is recognized as parts of its cost; otherwise,
through profit or loss for the period in which the expense is accrued.
(2) Leased fixed assets
If the Company acquired substantially the risks attached to and the economic benefits associated with a leased non-current
asset, the asset is recognized. The asset is measured at the lower of the assets fair value as at the lease-commence date and
the net present value of the minimum lease payment. The depreciation policies for owned non-current assets are applicable
to leased non-current assets. The expected useful life of a leased asset, of which the ownership is reasonably transferable to
the Company after the expiry of the lease, is the assets own expected useful life; the expected useful life of a leased asset, of
which the ownership is not reasonably transferable to the Company, is the shorter of the lease life and the assets own
expected useful life.
(3) Depreciation
Fixed assets are depreciated using the straight line method.
Residual value percentage
Types Useful life(years) Annual depreciation rate (%)
(%)
Houses and buildings 27-33 5.00 2.88-3.52
Equipments
Electronic devices
Transportation vehicles 5-10 5.00 9.5-19.00
30
Key components and power
15-20 5.00 4.75-6.33
supports of aircraft engine
Replacement parts of aircraft
6-8 0.00 12.5-16.67
body
Replacement parts of engine 3-5 0.00 20-33.33
Equipments, electronic devices
4-10 0-5.00 9.5-23.75
and furniture
High value routable 15-18 0.00 5.56-6.67
Other facilities
Leased fixed assets: -- -- --
Including: Houses and buildings
Equipments
Electronic devices
Transportation vehicles
Other facilities
(4) Impairment test on fixed asset and providing of impairment provision
The Company assesses each non-current asset for impairment on the balance sheet date. If it is objectively evidential that the
net recoverable value of a non-current asset is lower than its carrying value as at the balance sheet date, its carrying value is
reduced to the net recoverable value and the reduction accounted for through profit for the current period and recognized as
impairment provision. A recognized impairment loss of a non-current asset is not recoverable in subsequent periods. A
non-current asset is impaired if one of the following is evidential:
① its fair value decreased significantly during the current period with a decrease rate significantly higher than the rate
estimated on the basis of time or normal usage;
② the economic, technological or legal environment, in which the Company operates or in which the asset is located,
changed during the current period or is going to change in the near future; and, e the change caused or is going to cause
significant disadvantage to the Company;
③ the rate for discounting future cash flows, which has been affected by the increased interest rate or investment return
rate, has led to a significant decrease of the assets recoverable value;
④ the asset is either obsolete or physically damaged;
⑤ the asset has been or is going to be retired, terminated for usage or disposed prior to the end of its use life;
⑥ the Company recognized internally that the assets associated economic benefit has been or is going to be below
expectation, e.g. The net cash flows or net profit or loss significantly lower than the expected value; or
Other evidence which suggests the asset has been impaired.
31
(5) Other explanation
Nil
15. Construction-in-progress
(1) Categorizations
The Company categorizes construction-in-progress on the basis of project approval.
(2) Conversion of construction-in-progress to fixed assets
A construction-in-progress is recognized as a fixed asset when it satisfied the predetermined usable state. A converted
construction-in-progress is initially measured at its full construction cost. A converted construction-in-progress of which the
construction cost is not fully recognized is initially measured at a reasonable estimate; and, the initial measured cost is
adjusted to its full construction cost when the construction is fully recognized; but, its recognized depreciation as at the full
recognition is not adjusted.
(3) Impairment
The Company assesses each construction-in-progress for impairment on the balance sheet date. If it is objectively evidential
that the net recoverable value of a construction-in-progress is lower than its carrying value as at the balance sheet date, its
carrying value is reduced to the net recoverable value and the reduction accounted for through profit for the current period
and recognized as impairment provision. A recognized impairment loss of a construction-in-progress is not recoverable in
subsequent periods. A construction-in-progress is impaired if one or more of the following are evidential:
① the project has been suspended for a substantially long period of time and of which the construction is not to be
re-activated within three years;
② either the capability or the technology of the project is obsolete and the economic benefit associated with the project is
highly indeterminable; or
③ there is other evidence which suggests the project has been impaired.
16. Borrowing costs
(1) Capitalization of borrowing costs
The borrowing costs directly attributable to asset construction or production are capitalized into cost of asset when they meet
the following conditions:
① the asset construction or production expense has been incurred;
② the borrowing costs have been incurred; and
③ the construction or production which directly contributes to the usable state of the asset has been activated.
(2) Period of capitalization of borrowing costs
The capitalization of relevant borrowing costs is terminated when a constructed or produced asset reaches its usable or
sellable state. Any subsequent borrowing cost associated with the asset is accounted for through profit or loss for the period
in which it is incurred.
(3) Suspending capitalization period
If the construction or production of an asset eligible for capitalization has suspended not in accordance with schedule, where
32
the suspension has lasted continuously for a period longer than three months, the capitalization of relevant borrowing costs is
suspended.
(4) Measurement amounts of capitalized borrowing costs
The capitalized borrowing costs of a finance specifically raised for an asset construction or production are measured at the
excess of the borrowing costs over the interests arising from the deposit of the unused part of the finance or the gains arising
from the investment using the unused part of the finance for the relevant period.
Where the value of an asset construction or product is higher than the finance specifically raised for the construction or
production, the capitalized borrowing costs of the part of general finance used by the construction or production are
measured by multiplying the weighted average of the excess of the asset value over the specific-raised finance with the
capitalization rate of general finance.
17. Biological Assets
Nil
18. Oil and Gas Assets
Nil
19. Intangible assets
(1) Measurement
Intangible assets are initially measured at actual cost.
(2) Useful life and amortization
The period during which an intangible asset is reasonably capable of generating economic benefits for the Company with
reference to its contractual rights and other legal rights, industry practice, historical experience, and professional evidence is
determined as the assets useful life. If a period during which an intangible asset is reasonably capable of generating
economic benefits for the Company is not determinable, the asset is categorized as with undeterminable useful life.
① The useful life of an intangible asset with useful life is determined on the basis of:
a. the general useful life of products produced by the asset and the obtainable information in relation to the useful life of a
similar asset;
b. the current condition and estimated future trends of technology and techniques;
c. the market demand for products produced or service rendered by the asset;
d. the expected reaction of existing and potential competitors;
e. the estimated maintenance expense for the continuance of the assets ability in generating economic benefits and the
Company's estimated ability in maintaining the expense;
f. the relevant law and regulation which regulate the ownership period of the asset, e.g. chartered usage rights and lease
rights; and
g. the connection between the useful life of the asset and the useful life of the Companys other assets.
② An intangible asset with undeterminable useful life is amortized using a reasonable method determined by the
realization process of the assets expected economic benefit. Where a reasonable amortization method is undeterminable, the
asset is amortized using the straight line method.
33
(3) Recognition of intangible assets with undeterminable useful life
Those intangible assets fail to identify its period of generating benefits to the corporation are considered as intangible assets
with undeterminable useful life.
(4) Impairment of intangible assets with undeterminable useful life
The Company assesses the useful life of each intangible asset with undeterminable useful life on the balance sheet date. If
the useful life of an asset remains undeterminable, the asset is assessed for impairment on the balance sheet date. If it is
objectively evidential that the net recoverable value of an intangible asset with undeterminable useful life is lower than its
carrying value as at the balance sheet date, its carrying value is reduced to the net recoverable value and the reduction
accounted for through profit for the current period and recognized as impairment provision. A recognized impairment loss of
an intangible asset with undeterminable useful life is not recoverable in subsequent periods. An intangible asset with
undeterminable useful life is assessed for impairment if one or more of the following are evidential:
a. the asset has been replaced by another new technology which renders its ability to generate economic benefit for the
Company being significantly devastated;
b. the assets fair value has decreased significantly during the period and it may not increase during the remaining life of
the asset; or
c. there is there is other evidence which suggests the asset has been impaired.
(5) Research and development
Research expenses associated with an internal development project are accounted for through profit or loss for the period in
which they are incurred. Development expenses associated with an internal development project are recognized as intangible
assets if the project meets all of the following:
Assets arising from the project are either for sale or for internal use and it is technically viable to complete the project;
② the Company has clear intention to complete the intangible asset and to use or sell the asset;
③ it is objectively evidential that products produced by the intangible or the intangible asset itself are marketable or that
the intangible asset is employable if used internally;
④ it is practical, in terms of technology, finance and other resources, to complete the development of the intangible asset
and to use or sell the intangible asset; and
⑤ development expenses of the development of the intangible asset can be measured reliably.
(6) Accounting of expenditure for research and development
20. Long-term deferred expenses
The Companys long-term deferred expenses refer to expense which has been incurred but which generates economic benefit
for the Company for a period of longer than one year, such as expenses for pilots initial trainings. Those expenses are
amortized at 10 years according to their benefit period respectively. When a pilot is transferred from the Company, the cost
of transfer is the unamortized part of the original expenditure.
21. Assets transferred on condition of repurchase
Nil
22. Accrued liabilities
(1) Recognition of accrued liabilities
34
The obligations related to some items that meet the following conditions at the same time will be confirmed as the liabilities:
①This obligation is the current obligation of the company;
②The performance of this obligation will probably cause the economic benefits to flow out of the company;
③The amount of this obligation can be reliably calculated.
The Company should recognize accrued liabilities, when the Companys loss contract and restructuring liabilities undertaken
satisfied above conditions.
(2) The measurement of accrued liabilities
The accrued liabilities are initially measured in accordance with the best estimated outflow of economic benefits to fulfill the
current obligation as well as related risks regarding the contingencies, uncertainties and time value of money. Significant
impact on the time value of money the best estimation is determined through the related discounted future cash outflows.
The increase of book value of accrued liability caused due to the passage of time is recognized as interest.
Optimum evaluation of accrued liabilities
If the necessary payments have scopes, the optimum evaluation shall be determined based on the average amount between
the upper and lower limit amount of scope ; if the necessary payments do not have such scopes, the optimum evaluation shall
be determined in the following method:
① If the contingent event is involved in an individual project, the optimum evaluation amount will be determined based on
the possible amount;
② If the contingent event is involved in some projects, the optimum evaluation amount shall be determined based on
possible amount and occurrence probability. In case of all or part of payments about the confirmed liquidation liabilities are
expected to be compensated by the third parties or other parties, and the compensation amounts are surely received, then
such amounts shall be separately recognized. The confirmed compensation amounts shall not exceed book values of
confirmed liabilities
23. Share-based payments and equity instruments
(1) Categories of share-based payments
Nil
(2) Recognition methods of fair value of equity instruments
Nil
(3) Recognition foundations of the best estimation of vested equity instruments
Nil
(4) Accounting correspondence to the implementation, modification and termination of share-based payments plan
Nil
24. Repurchased stocks of the company
Nil
25. Revenue
(1) Specific criteria of time to recognize revenue
35
Service rendering
① The Company recognize revenue from rendering of air service for carriage of passengers when the service is rendered
or when an unused ticket expires. The sale of a ticket does not constitute revenue. An unused ticket expires on the annual
anniversary of its sale. Tickets sold but of which the service is not yet rendered are recognized in current liabilities as
Advances from customers. If service is rendered through code sharing, revenue arising from the service provision is
apportioned amongst parties to the code sharing agreement. The revenue arising from code sharing is also recognized when
the service is rendered.
② If the service is rendered in conjunction with reward points, the amount arising from ticket sales and of receivables
shall be apportioned between revenue and reward points. The amount apportioned to reward points is initially recognized as
deferred income and subsequently accounted for through profit or loss for the period in which the reward points expire or are
exchanged.
③Revenue arising from other air service rendering is recognized when the service rendering is completed.
(2) Transfer of asset use rights
Revenue is recognized when the inflow of the economic benefit associated with the transfer is probable and when the
amount of the inflow can be measured reliably. Revenue arising from transfer of asset use rights is recognized according to
the income category:
① interest income is recognized on the basis of the length of time for which the Companys monetary asset is used by
other parties using the effective interest rates;
② use right income is recognized in accordance with the payment schedules and means agreed in the relevant contracts or
agreements.
(3) Contracts of service rendering and contraction revenue of is confirmed base on the completion percentage
Nil
26. Government grants
(1) Types
There e is 2 kinds of government grants: the grant associated with an asset and the grant compensating expenditure or loss
(2) Accounting for government grants
Recognition
① The Company meets the conditions attached to the grant; and
② The Company is probable to receive the grant.
Types of government grants and accounting for government grants
① A grant associated with an asset is recognized as deferred income when the grant is received. The grant is subsequently
averaged over the useful life of the asset and the average is accounted for through profit or loss for subsequent periods
during the assets useful life after the asset reaches its usable state. If the asset is disposed, transferred, scrapped or damaged
prior to the end of its useful life, the whole of the remaining deferred income is accounted for through profit or loss for the
period in which the asset is disposed, transferred, scrapped or damaged.
② A grant compensating expenditure or loss in subsequent periods is initially recognized as deferred income and
subsequently accounted for through profit or loss for the period in which the relevant expenditure of loss is incurred. A grant
36
compensating expenditure or loss already incurred is accounted for through profit or loss for the period in which the grant is
received.
Measurement
A grant that is in the form of monetary asset is measured at the amount of actual receipt or actual receivable. A grant that is
in the form of non-monetary asset is measured at fair value or at notional value if fair value can not be obtained.
Repayment of government grants
① If there is deferred income associated with the grant, the carrying value of the deferred income is reduced by the
repayment. The excess of the repayment over the carrying value of the deferred income is accounted for through profit or
loss for the period in which the repayment is incurred.
② If there is not deferred income associated with the grant, the repayment is accounted for through profit or loss for the
period in which the repayment is incurred.
27. Deferred income tax assets and deferred income tax liabilities
(1) Recognition of deferred income tax assets
① A deferred income tax asset is recognized for all deductible temporary differences to the extent that it is probable that
taxable profit will be available against which the deductible temporary difference can be utilized, unless the deferred income
tax asset arises from the initial recognition of an asset or liability in a transaction that:
a. is not a business combination; and
b. at the time of the transaction, affects neither accounting profit nor taxable profit (tax loss).
② A deferred income tax asset is recognized for all deductible temporary differences arising from investments in
subsidiaries, branches and associates, and interests in joint ventures, to the extent that, and only to the extent that, it is
probable that:
a. the temporary difference will reverse in the foreseeable future; and
b. taxable profit will be available against which the temporary difference can be utilized.
③ A deferred income tax asset is recognized for all tax losses and tax credits eligible for being carried forward to the
extent that it is probable that taxable profit will be available against which the tax losses and tax credits can be utilised.
(2) Recognition of deferred income tax liabilities
A deferred income tax liability is recognized for all taxable temporary differences, except to the extent that the deferred
income tax liability arises from:
① the initial recognition of goodwill; or
② the initial recognition of an asset or liability in a transaction which:
a. is not a business combination; and
b. at the time of the transaction, affects neither accounting profit nor taxable profit (tax loss).
③ A deferred income tax liability is recognized for all taxable temporary differences associated with investments in
subsidiaries, branches and associates, and interests in joint ventures, except to the extent that both of the following
conditions are satisfied:
37
a. the parent, investor or venture is able to control the timing of the reversal of the temporary difference; and
b. it is probable that the temporary difference will not reverse in the foreseeable future.
28. Financial leases and operating leases
(1) Accounting correspondence to Operating leases
① When the Company is the leasee to a operating lease, the total lease expenditure is apportioned over the lease life using
the straight line method or on the basis of the leased asset usage. The apportioned amount is recognized through profit or
loss for the relevant period. Initial expenditure directly attributable to the acquisition of the lease is recognized in
administrative expenses for the period in which the expenditure is incurred or recognized through profit of loss for the period
in which the first lease payment is incurred. If a rent holiday is offered by the leaser, the total expenditure is apportioned
over the whole life of the lease using the straight line method or on a reasonable basis; the lease expense during the rent
holiday is accounted for through profit or loss for the relevant period and recognized as a liability on the balance sheet. If a
part of the total lease expenditure is compensated by the leaser, the residual amount after deducting the compensation from
the total lease expenditure is apportioned over the lease life.
② When the Company is the leaser to a operating lease, the total lease revenue is apportioned over the lease life. The
apportioned amount is recognized through profit or loss for each year of the lease life. Initial expenditure directly attributable
to the grant of the lease is recognized through profit or loss for the period in which it is incurred. If the initial expenditure is
of significant value, it is capitalized and apportioned over the lease life using the same method adopted for the
apportionment of lease revenue; the apportioned amount is recognized through profit or loss for each year of the lease life.
The initial expenditure of significant value is recognized in full through profit or loss for the period in which the first lease
income is accrued if the recognition is so provided by an agreement. If a rent holiday is offered, the total lease revenue is
apportioned over the whole life of the lease using the straight line method or on a reasonable basis. The apportioned amount
is recognized as lease income for each year of the lease life, including the years within the rent holiday. If a part the total
lease expenditure is compensated by the leaser, the residual amount after deducting the compensation from the total lease
revenue is apportioned over the lease life.
(2) Accounting correspondence to Financial leases
① When the Company is the leasee to a financial lease, the Company recognizes on the lease start date the leased asset at
the lower of its fair value as at the lease start date and the minimum total lease payments; the minimum total lease payments
is recognized as long-term payables; and, the excess of the minimum total lease payments over the leased assets fair value
as at the lease start date is accounted for as unrecognized financing cost and amortized over the life of the lease using the
effective interest rate method with the amortized amount recognized in financial costs for the relevant period. Initial
expenditure directly attributable to the acquisition of the lease is recognized as a part of the leased assets carrying value.
The depreciation policies for owned depreciatable assets are applicable to an asset leased under a financial lease. The
expected useful life of a leased asset, of which the ownership is reasonably transferable to the Company after the expiry of
the lease, is the assets own expected useful life; the expected useful life of a leased asset, of which the ownership is not
reasonably transferable to the Company, is the shorter of the lease life and the assets own expected useful life.
② When the Company the leaser to a financial lease, the Company recognizes on the lease start date the sum of initial
expenditure directly attributable to the grant of the lease and the minimum total lease revenue as long-term receivables; and,
the unguaranteed residual value is recorded. The excess of the sum of the minimum total lease revenue, initial expenditure
directly attributable to the grant of the lease and unguaranteed residual value over the leased assets fair value as at the least
start date is accounted for as unrealized financing income and amortized over the lease life using the effective interest rate
method with the amortized amount recognized as rental income for the relevant period.
38
29. Holding assets for sale
(1) Recognition criteria of holding assets for sale
Nil
(2) Accounting correspondence to holding assets for sale
Nil
30. Assets securitization business
Nil
31. Hedge accounting
Nil
32. Significant changes of accounting policies and accounting assessments
Is there any significant change of accounting policies and accounting assessments during reporting period?
□ Yes √ No □ non-Applicable
(1) Changes of accounting policies
□ Yes √ No □ non-Applicable
(2) Changes of accounting assessments
□ Yes √ No □ non-Applicable
33. Corrections of accounting errors during last period
Are there any accounting errors of last period detected during reporting period?
□ Yes √ No □ non-Applicable
(1) Retrospective restatement method
Is there any accounting error of last period applying retrospective restatement method detected during reporting period?
□ Yes √ No □ non-Applicable
(2) Prospective applicable method
Is there any accounting error of last period applying prospective applicable method detected during reporting period?
□ Yes √ No □ non-Applicable
34. Other primary consolidation methods of accounting policies, accounting assessments and financial statements.
Nil
V. Taxation
1. Major taxes and tax rates
Tax Tax base Tax rate
Value-added tax
Consumption tax
39
Revenue from air service for carriage of
Operating tax goods and passengers and from 3%, 5%
commission or rental service
Urban maintenance and construction tax
Enterprise income tax Taxable profit 25%
2. Tax preference and approvals
(1) Revenue earned by domestic individuals and incorporation domiciled in the PRC for the provision of international
transportation services is exempted for operating tax purposes as from January 1 st, 2010 as provided by Caishui[2010]No.8
(财政部国家税务总局关于国际运输劳务免征营业税的通知)
(2) As provided by CaiShui[2011]No.48 (财税[2011]48 号《关于跨境设备租赁合同继续实行过渡性营业税免税政策的通
知》) jointly issued by the Ministry of Finance and the State Adnimistration of Taxation on June 30th, 2011 and approved by
the State Council, the transitional operating tax exemption applicable to revenue received by overseas leaser(s) to lease
contracts (applicable to both financing lease and operating lease) of machinery and equipment import leasing involving
domestic leasee(s) and overseas leaser(s) entered into prior to and remaining in force as at December 31 st, 2008 continues to
apply from January 1st, 2010 to the expiry date of the relevant contract. Operating tax over-payment in relation to the subject
of the operating tax exemption paid by either the tax payer or the withholding agent during the period from January 1 st, 2010
to the issue date of CaiShui[2011]No.48 (here after, the OTO) shall be utilised against the operating tax payable by the tax
payer or the withholding agent calculated from the issue date of CaiShui[2011]No.48. The OTO remaining utilised as at
December 31st, 2011 shall become repayable to the tax payer or the withholding agent.
3. Other explanation
Infrastructure fund for civil aviation is calculated in accordance with the guidance set out in CaiZong[2004] No.38 (财政部
关于印发民航基础设施建设基金征收使用管理暂行办法) issued by the Ministry of Finance. CaiZong[2004] No.38
provides that infrastructure fund and civil aviation shall be calculated using the rates set out within applicable to the relevant
category of flight routes, maximum departure weight and flight distance adopted by the civil aviation industry.
VI Business combination and consolidated financial statements
General statement of business combination and consolidated financial statements
40
1. Background information of subsidiary companies
(1) Subsidiaries acquired through incorporation or investment
Unit: RMB
Value of
The balance of parent
minority
companys equity,
interest
that is equal to the
Ending that
parent shareholders
balances of Financi utilized
equity less the
Actual projects al to write
Shareholdin subsidiarys current
Name of Type of Place of Nature of Registered Business investment constituting Voting right stateme Minority off the
Currency g proportion loss undertaken by
subsidiary subsidiary registration business capital scope value as net (%) nt interest profits
(%) the minority
period-end investment consolid or losses
shareholders
in the ation attribute
according their share
subsidiary d to
quotient at the
minority
beginning of the
sharehol
period
ders
Qingdao
International
Warehousin
Air
Transportati g and
Logistics
Holding Shandong on 30,000,000. distribution 48,323,205.
Centre Co., CNY 0.00 100% 100% Yes 0.00 0.00 0.00
subsidiary Qingdao warehousin 00 of air cargo, 97
Ltd
g E-commerc
(hereafter,
e, etc
Qingdao
Logistics)
Notes of subsidiaries acquired through incorporation or investment:
(2) Subsidiaries acquired through business combination under common control
Nil
(3) Subsidiaries acquired through business combination not under common control
Nil
2．Special purpose entities or entities control via trustee or lease operation
□ Applicable √ non-Applicable
41
3. Change of the scope of consolidation
The scope of consolidation for the year ended June 30th, 2012 remained unchanged from the scope of consolidation as at
December 31st, 2011.
4. Entities new consolidated or excluded from consolidation in reporting period
□ Applicable √ non-Applicable
5. Entities consolidated under common control in reporting period
□ Applicable √ non-Applicable
6. Entities consolidated not under common control in reporting period
□ Applicable √ non-Applicable
7. Decrease of subsidiaries in reporting period through selling those euiqities the control rights of which have been
deprived
□ Applicable √ non-Applicable
8. Counter purchases in reporting period
□ Applicable √ non-Applicable
9. Mergered by absorption in reporting period
□ Applicable √ non-Applicable
10. Exchange rate of primary statement items associated with oversea entities
□ Applicable √ non-Applicable
VII Main elements of the consolidated financial statements
1. Monetary funds
Unit: RMB
End of reporting period Beginning of reporting period
Item Exchan Original Exchange
Original currency CNY CNY
ge rate currency rate
Cash in hand: -- -- 918,866.82 -- -- 464,985.14
CNY -- -- 541,401.06 -- -- 444,053.27
HKD 606.60 0.8152 494.50 106.60 0.8107 86.42
USD 20,859.78 6.3249 131,936.02 1,534.07 6.3009 9,666.02
GBP 58.55 9.8169 574.78 58.55 9.7116 568.61
CAD 10.00 6.1223 61.22 10.00 6.1777 61.78
0.07964
JPY 94,000.00 7,486.91 130,000.00 0.0811 10,543.00
8
EUR 27,970.00 7.871 220,151.87 0.00 8.1625 0.00
0.21014
TWD 79,758.00 16,760.46 29.00 0.208355 6.04
1
Demand deposit: -- -- 344,932,580.15 -- -- 239,720,762.34
CNY -- -- 297,666,093.15 -- -- 236,879,354.17
USD 7,270,879.56 6.3249 45,987,586.13 315,249.24 6.3009 1,986,353.94
0.00553
KRW 62,821,535.00 347,654.37 10,003,126.00 0.005476 54,777.12
4
0.21014
TWD 4,236,463.00 890,256.37 3,840,930.00 0.208355 800,277.11
1
0.07964
JPY 514,641.00 40,990.13 0.00 0.0811 0.00
8
Other monetary funds: -- -- 500,000.00 -- -- 8,000,000.00
CNY -- -- 500,000.00 -- -- 8,000,000.00
Total -- -- 346,351,446.97 -- -- 248,185,747.48
Notes for funds have limited access, deposit oversea, and potential risks of derecognise caused by mortgage, pledge or
42
freeze:
(1) Restricted other monetary funds amounting to 0.5 million as at June 30th, 2012 included security deposit amounting
to 7.5 million for bankers acceptance.
(2) Monetary funds at the end of reporting period increase by 39.55% compared to the beginning which is mainly for
cash raised at the end of reporting period.
2. Financial assets held for trading
(1) Financial assets held for trading
Unit: RMB
Item Fair value as at 2012.06.30 Fair value as at 2012.1.1
Tradable bond investment
Tradable equity investment for trading
Financial assets appointed measure with fair value and
changes accounted to current gain and loss
Derivative financial assets
Hedging instruments
Others
Total 0.00 0.00
(2) Financial assets for trading which have limited access to cash out
Nil
(3) Explanations to Hedging instruments and related hedging trade
Nil
3. Notes receivable
Nil
4. Dividends receivable
Unit: RMB
Items Amount at period-begin Increase in this period Decrease in this period Amount at period-end
Dividend receivables aged
0.00 15,295,400.00 0.00 15,295,400.00
within a year
Including:
China Travelsky
0.00 1,565,400.00 0.00 1,565,400.00
Technology Co., Ltd.
Sichuan Airlines Co., Ltd 0.00 13,730,000.00 0.00 13,730,000.00
Dividend receivables aged
0.00 0.00 0.00 0.00
over a year
Including: -- -- -- --
Total 0.00 15,295,400.00 0.00 15,295,400.00
5. Interests receivable
Nil
6. Other receivables
(1) Disclosure by classification
Unit: RMB
Amount at period-end Amount at period-begin
Book value Provision for bad debts Book value Provision fro bad debts
Item
Proportion Proportion Proportion Proportion
Amount Amount Amount Amount
(%) (%) (%) (%)
Other receivables of 182,685,63 133,831,5
76.36% 0.00 0% 70.68% 0.00 0%
individual significance 5.96 01.87
Categorized other receivables:
Categorization by nature 55,648,901. 23.26% 2,782,445.1 5% 54,598,61 28.84% 2,729,930.73 5%
43
of receivables 88 0 4.70
55,648,901. 2,782,445.1 54,598,61
Subtotal of category 23.26% 5% 28.84% 2,729,930.73 5%
88 0 4.70
Other receivables of
individual insignificance 916,508.0
916,508.05 0.38% 916,508.05 100% 0.48% 916,508.05 100%
subject to individual 5
assessment for impairment
239,251,04 3,698,953.1 189,346,6
Total -- -- -- 3,646,438.78 --
5.89 5 24.62
Accounts receivable of individual significance subject to individual assessment for impairment:
√Applicable □ non-Applicable
Unit: RMB
Provision for bad
Content Book value Proportion Reason for provision
debt
Individually assessed as
BSP 91,459,484.56 0.00 0%
non-impaired
Individually assessed as
Air China 52,195,847.73 0.00 0%
non-impaired
Individually assessed as
CAAC Settlement Centre 39,030,303.67 0.00 0%
non-impaired
Total 182,685,635.96 0.00 --
Categories of accounts receivable subject to provision for bad debts by aging
□ Applicable √ non-Applicable
Categories of accounts receivable subject to provision for bad debts by percentage of carrying amount
√Applicable □ non-Applicable
Unit: RMB
Category Book value Proportion (%) Provision for bad debts
Categorization by nature of receivables 55,648,901.88 5% 2,782,445.10
Total 55,648,901.88 -- 2,782,445.10
Categories of accounts receivable subject to provision for bad debts by other methods
□ Applicable √ non-Applicable
Other receivables of individual insignificance subject to individual assessment for impairment:
√ Applicable □ non-Applicable
Unit: RMB
Category Book value Provision for bad debts Proportion (%) Reason for provision
Individually assessed as
CR Airways 916,508.05 916,508.05 100%
non-impaired
Total 916,508.05 916,508.05 100% --
(2) Receivables reverse or derecognise in reporting period
Nil
(3) Receivables actually cancelled after verification in reporting period
Nil
(4) Other receivables owed by shareholders with 5% or more voting right during the reporting period
√ Applicable □ non-Applicable
Unit: RMB
Amount at period-end Amount at period-begin
Shareholder Provision for bad Provision for bad
Book value Book value
debts debts
Air China 52,195,847.73 0.00 54,247,936.00 0.00
Total 52,195,847.73 0.00 54,247,936.00 0.00
(5) Shareholders own top five other receivables
44
Unit: RMB
Relationship with % of total other
Name of company Amount Age
the Company receivables
BSP Non-related party 91,459,484.56 Within 1 year 38.23%
Air China Related party 52,195,847.73 Within 1 year 21.82%
CAAC Settlement Centre Non-related party 39,030,303.67 Within 1 year 16.31%
Hebei Airport Management Co.,
Ltd, Shi Jiazhuang International Non-related party 5,200,000.00 Within 1 year 2.17%
Airport branch
The peoples government of
Non-related party 4,270,061.70 Within 1 year 1.78%
Luoyang
Total -- 192,155,697.66 -- 80.31%
(6) Other receivables owed by related parties
Unit: RMB
Name of company Relationship with the Company Amount % of total other receivables
Second-largest shareholder of
Air China 52,195,847.73 21.82%
the company
Subsidiary company of
Shenzhen Airlines Co., Ltd. Second-largest shareholder of 1,849,400.00 0.77%
the company
total -- 54,045,247.73 22.59%
(7) Receivables derecognized
(8) Securitization of accounts receivable, listing amounts of continuous involvement formed assets and liabilities
7. Other accounts receivable
(1) Disclosure by classification
Unit: RMB
Amount at period-end Amount at period-begin
Book value Provision for bad debt Book value Provision for bad debt
Classification
Proportio Proportio Proportion Proportio
Amount Amount Amount Amount
n (%) n (%) (%) n (%)
Accounts receivable of 219,290,764. 109,051,717. 168,048,800.
70.49% 49.73% 55.87% 109,051,717.65 64.89%
individual significance 09 65 93
Categorized accounts receivable:
Categorization by nature 52,437,220.2 51,848,032.2
16.86% 2,621,861.02 5% 17.23% 2,592,401.60 5%
of receivables 4 7
52,437,220.2 51,848,032.2
Subtotal of category 16.86% 2,621,861.02 5% 17.23% 2,592,401.60 5%
4 7
Accounts receivable of
individual insignificance
39,370,230.9 80,903,554.9
subject to individual 12.65% 0.00 0% 26.9% 0.00 0%
9 7
assessment for
impairment
311,098,215. 111,673,578. 300,800,388.
Total -- -- -- 111,644,119.25 --
32 67 17
Accounts receivable of individual significance：
√ Applicable □ non-Applicable
Unit: RMB
Other receivables Book value Amounts of bad debt Portion (%) Reason for provision
Shandong Rainbow Individually assessed as
109,051,717.65 109,051,717.65 100%
Commercial Jet Co., Ltd. uncollectible
Individually assessed as
CBD-leasing Co., Ltd 41,354,563.28 0.00 0%
non
Beijing FuLaiTe 34,480,941.10 0.00 0% Individually assessed as
45
Technology non
Development Co., Ltd
Individually assessed as
Company 1 17,709,720.00 0.00 0%
non
Individually assessed as
Air China 16,693,822.06 0.00 0%
non
Total 219,290,764.09 109,051,717.65 -- --
Categories of other receivables subject to provision for bad debts by aging
□ Applicable √ non-Applicable
Categories of other receivables subject to provision for bad debts by percentage of carrying amount
√ Applicable □ non-Applicable
Unit: RMB
Category Book value Proportion (%) Provision for bad debts
Categorization by nature of receivables 52,437,220.24 5% 2,621,861.02
Total 52,437,220.24 -- 2,621,861.02
Categories of other receivables subject to provision for bad debts by other means
□ Applicable √ non-Applicable
Other receivables of individual insignificance subject to individual assessment for impairment:
√ Applicable □ non-Applicable
Unit: RMB
Content Book value Provision for bad debt Proportion (%) Reason for provision
Individually assessed as
Company2 189,747.00 0.00 0%
non
Individually assessed as
Company3 632,490.00 0.00 0%
non
Individually assessed as
Company4 3,339,547.20 0.00 0%
non
Individually assessed as
Company5 9,842,833.50 0.00 0%
non
Individually assessed as
Company6 790,612.50 0.00 0%
non
Individually assessed as
Company7 5,945,406.00 0.00 0%
non
Individually assessed as
Company8 13,268,532.39 0.00 0%
non
Individually assessed as
Company9 4,338,881.40 0.00 0%
non
China Merchants Bank Individually assessed as
353,438.00 0.00 0%
Phone Payment non
KuaiQian Telephone Individually assessed as
58,199.00 0.00 0%
Payment non
HuiFuTianXia Phone Individually assessed as
610,544.00 0.00 0%
Payment non
Total 39,370,230.99 0.00 0% --
(2) Other receivables reverse or derecognise in reporting period
Nil
(3) Other receivables actually cancelled after verification in reporting period
Nil
(4) Other receivables owed by shareholders with 5% or more voting right during the reporting period
√ Applicable □ non-Applicable
Unit: RMB
Shareholder Amount at period-end Amount at period-begin
46
Provision for bad Provision for bad
Book value Book value
debts debt
Air China 16,693,822.06 0.00 13,859,769.26 0.00
Total 16,693,822.06 0.00 13,859,769.26 0.00
(5) Contents or nature of other significant receivables
Nil
(6) Top five other receivables
Unit: RMB
Relationship with the % of total other
Name of company Amount Age
Company receivables
Shandong Rainbow
Related party 109,051,717.65 4 to 8 years 35.05%
Commercial Jet Co., Ltd.
CBD-leasing Co., Ltd. Non-related party 41,354,563.28 Over 5 years 13.3%
Beijing FuLaiTe
Technology Non-related party 34,480,941.10 Within 1 year 11.08%
Development Co., Ltd.
Company1 Non-related party 17,709,720.00 Over 4 years 5.69%
Air China Related party 16,693,822.06 Within 1 year 5.37%
Total -- 219,290,764.09 -- 70.49%
(7) Other receivables owed by related parties
Unit: RMB
Name of company Relationship with the Company Amount % of total other receivables
Second-large shareholder of the
Air China 16,693,822.06 5.37%
company
Shandong Rainbow
Associate 109,051,717.65 35.05%
Commercial Jet Co., Ltd.
Total -- 125,745,539.71 40.42%
(8) Receivables derecognized
(9) Securitization of other receivables, listing amounts of continuous involvement formed assets and liabilities
8. Advances to suppliers
(1) Disclosure by age
Unit: RMB
Amount at period-end Amount at period-begin
Age
Amount Portion (%) Amount Portion (%)
Within 1 year 64,808,975.56 98.66% 40,518,175.85 97.99%
1 to 2 years 76,641.00 0.12% 343,276.80 0.83%
2 to 3 years 606,500.00 0.92% 476,994.00 1.15%
More than 3
200,176.90 0.3% 10,000.00 0.03%
years
Total 65,692,293.46 -- 41,348,446.65 --
(2) Top five advances to suppliers
Unit: RMB
Relationship with the
Name of company Amount Age Reasons for advance
Company
Pay in advance for plane
RBS AEROSPACE LTD Non-related party 8,495,274.44
Within 1 year rents
ACG ACQUISITION Non-related party Pay in advance for plane
5,160,174.86
IRELAND III LIMITED Within 1 year rents
Indiscreet Leasing Non-related party Pay in advance for plane
4,449,340.00
Limited Within 1 year rents
Shandong De Tai Non-related party Pay in advance for
3,100,000.00
Decoration Co., Ltd Within 1 year decoration expenses
47
Shenzhen Hua Hui Non-related party
Pay in advance for
Decoration Co., Ltd 2,964,000.00
decoration expenses
Jinan branch Within 1 year
Total -- 24,168,789.30 -- --
(3) Advance to supplier paid to shareholders who own 5% or more voting rights during reporting period
□ Applicable √ non-Applicable
(4) Notes to advances to suppliers
The balance of advances to suppliers as at June 30th, 2012 increased for 58.87% from that as at December 31st, 2011, mainly
due to increased prepayment for aircraft rental resulted from the increased number of leased aircraft.
9. Inventories
(1) Disclosure by classification
Unit: RMB
Amount at period-end Amount at period-begin
Classification Impairment Impairment
Book value Carrying amount Book value Carrying amount
provision provision
Raw materials
Products under
manufacturing
Products in stock
Rotables
Consumable
biological assets
Consumable air
94,321,270.68 0.00 94,321,270.68 111,200,001.62 0.00 111,200,001.62
equipments
Low-value
4,218,079.57 0.00 4,218,079.57 4,283,702.66 0.00 4,283,702.66
consumables
Materials 689,630.80 0.00 689,630.80 787,075.91 0.00 787,075.91
Total 99,228,981.05 0.00 99,228,981.05 116,270,780.19 0.00 116,270,780.19
(2)Impairment provision
Unit: RMB
Book value as at Provision amount in Decrease in reporting period Book value as at
Classification
2011.12.31 reporting period Reverse De-recognize 2012.6.30
Raw material
Product under
manufacturing
Products in stock
Rotables
Consumable biological
assets
Total 0.00 0.00 0.00 0.00 0.00
(3) Provision of impairment for inventories
Nil
10. Other liquid assets
Nil
11. Financial assets available for sale
(1) Financial assets available for sale
Nil
(2) Long-term equity investment in financial assets
Nil
48
12. Held-to-maturity investment
(1) Held-to-maturity investment
Nil
(2) Held-to-maturity investment not expired sold during reporting period
Nil
13. Long-term receivables
Unit: RMB
Category Amount at period-end Amount at period-begin
Financial leasing
Including: unrealized financial
income
Installment sales merchandise
Installment provide services
Others
Total 0.00 0.00
14. Investment in joint ventures or associates
Unit: RMB
Total
Total Net Total Net
liabilitie
Type of Place of Legal Scope Register Shareho Voting assets Assets revenue profit
Currenc s
Investee incorpor registrat represen of ed lding right as at as at for for
y as at
ation ion tative business capital (%) (%) 2012.6. 2012.6. reportin reportin
2012.6.
30 30 g period g period
30
1. Joint venture
2. Associates
Shandong
Rainbow Limited Air -161,74
Jinan, Zhao 13,520, 175,265 170,397
Commerc liability transporta 50 million CNY 45% 45% 4,162.2 0.00
Shandong Hong 992.23 ,154.52 .15
ial Jet company tion 9
Co., Ltd.
49
15. Long-term equity investments
(1) Disclosure by classification
Unit: RMB
Reason for Impairment
Shareholding Voting right disagreement Impairment Cash dividend
between provision
Investee Measurements Original cost 2011.12.31 Movement 2012.6.30 provision recognised in
(%) (%) shareholding in year
and voting right year
China
Travelsky Historical cost No
6,690,000.00 6,690,000.00 0.00 6,690,000.00 0.45% 0.45% 0.00 0.00 1,565,400.00
Technology convention disagreement
Co., Ltd.
Sichuan Historical cost No
Airlines Co., convention 35,000,000.00 35,000,000.00 0.00 35,000,000.00 10% 10% 0.00 0.00 13,730,000.00
disagreement
Ltd.
Jinan
International Historical cost No
46,662,100.00 46,662,100.00 0.00 46,662,100.00 2.53% 2.53% 0.00 0.00 0.00
Airport Co., convention disagreement
Ltd.
Shandong
Rainbow No
Equity method 22,500,000.00 22,500,000.00 0.00 22,500,000.00 45% 45% 22,500,000.00 22,500,000.00 0.00
Commercial Jet disagreement
Co., Ltd.
Total -- 110,852,100.00 110,852,100.00 0.00 110,852,100.00 -- -- -- 22,500,000.00 22,500,000.00 15,295,400.00
50
(2) Limitations of capability to invest
Nil
16. Real estate for investment
(1) Real estate for investment measured by cost
□ Applicable √ non-Applicable
(2) Real estate for investment measured by fair value
□ Applicable √ non-Applicable
17. Fixed assets
(1) Disclosure by classification
Unit: RMB
Book balance at Decrease in Book balance at
Classification Increased in reporting period
period-begin reporting period period-end
I. Total historical cost 10,274,102,193.05 1,069,775,619.32 56,944,435.57 11,286,933,376.80
Including: Houses and
216,534,784.90 0.00 432,570.81 216,102,214.09
buildings
Machinery equipment
Transportation vehicles
Aircrafts and engines 9,389,885,334.62 1,001,169,537.40 50,765,042.50 10,340,289,829.52
High-value routable 514,120,231.79 54,784,269.30 4,068,743.26 564,835,757.83
Transportation equipment 48,813,412.30 9,287,933.22 781,671.00 57,319,674.52
Machinery, equipments and
104,748,429.44 4,533,879.40 896,408.00 108,385,900.84
other
Book balance at Increase during Accrual in this Decrease in Book balance at
--
period-begin this period period reporting period period-end
II. Cumulative depreciation: 3,396,835,560.77 331,006,395.60 0.00 47,555,640.25 3,680,286,316.12
Including: Houses and
39,393,560.99 3,411,699.99 128,338.20 42,676,922.78
buildings
Machinery equipment
Transportation vehicles
Aircrafts and engines 3,097,768,452.52 305,703,740.76 44,436,029.68 3,359,036,163.60
High-value routable 183,183,084.17 14,949,374.66 1,409,869.17 196,722,589.66
Transportation equipment 21,814,042.77 2,027,378.21 731,510.81 23,109,910.17
Machinery, equipments and
54,676,420.32 4,914,201.98 849,892.39 58,740,729.91
other
Book balance at Book balance at
-- --
period-begin period-end
III. Net Carrying amount 6,877,266,632.28 -- 7,606,647,060.68
Including: Houses and
177,141,223.91 -- 173,425,291.31
buildings
Machinery equipment --
Transportation vehicles --
Aircrafts and engines 6,292,116,882.10 -- 6,981,253,665.92
High-value routable 330,937,147.62 -- 368,113,168.17
Transportation equipment 26,999,369.53 -- 34,209,764.35
Machinery, equipments and
50,072,009.12 -- 49,645,170.93
other
IV. Impairment provision 193,810,080.67 -- 193,629,045.56
Including: Houses and
0.00 -- 0.00
buildings
Machinery equipment --
Transportation vehicles --
51
Aircrafts and engines 178,336,555.41 -- 178,336,555.41
High-value routable 15,473,525.26 -- 15,292,490.15
Transportation equipment 0.00 -- 0.00
Machinery, equipments and
0.00 -- 0.00
other
VCarrying amount 6,683,456,551.61 -- 7,413,018,015.12
Including: Houses and
177,141,223.91 -- 173,425,291.31
buildings
Machinery equipment --
Transportation vehicles --
Aircrafts and engines 6,113,780,326.72 -- 6,802,917,110.51
High-value routable 315,463,622.33 -- 352,820,678.02
Transportation equipment 26,999,369.53 -- 34,209,764.35
Machinery, equipments and
50,072,009.12 -- 49,645,170.93
other
Depreciation of reporting period is RMB 331,006,395.60; cost of fixed assets transferred from construction in progress
during the current reporting period amounting to RMB 613,918,532.28.
(2) Fixed assets currently idle
□ Applicable √ non-Applicable
(3) Fixed assets acquired under financial lease
√ Applicable □ non-Applicable
Unit: RMB
Item Historical cost Cumulative depreciation Carrying amount
Houses and buildings 0.00
Machinery equipment 0.00
Transportation vehicles 0.00
Aircrafts and engines 1,744,779,294.10 483,023,074.87 1,261,756,219.23
(4) Operating leased fixed assets
□ Applicable √ non-Applicable
(5) Fixed assets for sale owned on 2012.6.30
(6) Fixed assets pending ownership registration
Estimate time to complete ownership
Item Reason for pending ownership registration
registration
Jinan cargo arrival and departure Land rented from Jinan Air Control, no
warehouses eligible for ownership registration
Qingdao aircraft maintenance workshops Ownership registration in process
Yantai terminal building Ownership registration in process
Explanations to fixed assets:
Book value of fixed assets in mortgage rationing and financing leased limited aircraft engines is RMB
5,688,439,102.03.
18. Constructions in progress
(1) Disclosure by project
Unit: RMB
Amount at period-end Amount at period-begin
Projects Impairment Carrying Impairment
Book value Book value Carrying amount
provision amount provision
1,252,928,300. 1,252,928,300. 1,559,456,551.
B737-800 aircrafts 0.00 0.00 1,559,456,551.45
81 81 45
ARJ21-700 aircrafts 60,778,195.00 0.00 60,778,195.00 60,778,195.00 0.00 60,778,195.00
B737NG simulator 18,121,962.22 0.00 18,121,962.22 100,000.00 0.00 100,000.00
52
Terminal building 40,258,268.64 0.00 40,258,268.64 22,956,157.35 0.00 22,956,157.35
Other projects 5,041,019.00 0.00 5,041,019.00 1,634,015.58 0.00 1,634,015.58
1,377,127,745. 1,377,127,745. 1,644,924,919.
Total 0.00 0.00 1,644,924,919.38
67 67 38
53
(2) Movement of significant constructions-in-progress
Unit: RMB
Including: Ratio of
Accumulated
Transferred to Other Proportion of amounts of interests
Amount at Increase in Progressing amounts of Amount at
Project Budget fixed assets in decrease in expenses to interests capitalized in Capital Origin
period-begin this period this period status interests period-end
this period budget (%) capitalized in this period
capitalized
this period (%)
B737-800 1,559,456,551 307,390,281.6 613,918,532.2 -11,785,366.6 1,252,928,300
0.00 4,977,286.15
aircrafts .45 4 8 2 .81
ARJ21-700
60,778,195.00 0.00 0.00 0.00 487,587.70 0.00 60,778,195.00
aircrafts
B737NG
100,000.00 18,021,962.22 0.00 0.00 18,121,962.22
simulator
Terminal
22,956,157.35 17,302,111.29 0.00 0.00 40,258,268.64
building
Other projects 1,634,015.58 3,407,003.42 0.00 0.00 5,041,019.00
1,644,924,919 346,121,358.5 613,918,532.2 -11,297,778.9 1,377,127,745
Total 0.00 0.00 -- -- 4,977,286.15 -- --
.38 7 8 2 .67
54
(3) Provisions of impairment for constructions in progress
Nil
(4) Progressing status of significant constructions in progress
Nil
(5) Explanations to constructions in progress
The balance of aircraft purchase right pledge as security for bank loans amounted to 1,165,462,034.53 as at June 30th, 2012.
No impairment provision shall be recognized for construction in progress as at June 30th, 2012.
19. Project materials
Nil
20. Liquidation of fixed assets
Nil
21. Productive biological assets
(1) Measured by cost
□ Applicable √ non-Applicable
(2) Measured by fair value
□ Applicable √ non-Applicable
22. Oil and gas assets
Nil
23. Intangible assets
(1) Disclosure
Unit: RMB
Book balance at Book balance at
Item Increase in this period Decrease in this period
period-begin period-end
I. Total historical cost 83,601,933.13 1,062,000.00 0.00 84,663,933.13
Land use rights 83,601,933.13 1,062,000.00 0.00 84,663,933.13
II. Total cumulative 4,414,811.09 720,715.25 0.00 5,135,526.34
amortisation
Land use rights 4,414,811.09 720,715.25 0.00 5,135,526.34
III. Total net book value of 79,187,122.04 0.00 0.00 79,528,406.79
intangible assets
Land use rights 79,187,122.04 0.00 0.00 79,528,406.79
IV. Total impairment 0.00 0.00 0.00 0.00
provision
Land use rights 0.00 0.00 0.00 0.00
Total carrying amount 79,187,122.04 0.00 0.00 79,528,406.79
Land use rights 79,187,122.04 0.00 0.00 79,528,406.79
Amount of amortisation in this period is RMB 720,715.25.
(2) Expenditure for company developing project
Nil
(3) Intangible assets pending on ownership registration
Nil
24. Goodwill
Unit: RMB
Impairment
Amount at Increase in this Decrease in this Amount at
Investee or events earn goodwill provision
period-beginning period period period-end
as at 2012.6.30
Qingdao Feisheng 10,220,816.22 0.00 0.00 10,220,816.22 0.00
55
Total 10,220,816.22 0.00 0.00 10,220,816.22 0.00
25. Long-term deferred expenses
Unit: RMB
Balance at Increase in this Amortisation in Other decrease in Balance at Reason for other
Item
period-begin period this period this period period-end decrease
Pilot recruitment
and training 249,104,101.12 35,057,996.13 21,382,335.45 0.00 262,779,761.80
expenditure
Jinan Operation
Building 6,676,288.11 0.00 351,383.58 0.00 6,324,904.53
Decoration
expenditure
Total 255,780,389.23 35,057,996.13 21,733,719.03 0.00 269,104,666.33 --
26. Deferred income tax assets and deferred income tax liabilities
(1) Deferred income tax assets and deferred income tax liabilities listed not with net amount after offset
√ Applicable □ non-Applicable
Recognised deferred income tax assets and deferred income tax liabilities
Unit: RMB
Item Amount at period-end Amount at period-begin
Deferred income tax
Impairment provision 48,407,261.39 48,452,520.17
Initial expenditure
Tax-deductible loss
Accrued substantial maintenance expenditure 178,998,022.50 135,006,662.91
Undue wages and salaries 9,201,404.99 17,388,124.64
Unutilised loss 88,199.04 195,890.90
Changes of fair value of financial liabilities held
1,595,875.04 536,380.28
for trading
Rewards to frequent passengers 39,155,164.31 0.00
Provision for bad debts 28,843,132.96 28,822,639.51
Subtotal 306,289,060.23 230,402,218.41
Deferred income tax liabilities
Estimate amounts of financial equities held for
trading and derivative financial equities
Changes of fair value of financial assets held for
trading accountable for capital accumulation
Subtotal;
Taxable and tax-deductible differences details
Unit: RMB
Amount of temporary differences
Item
period-end period-begin
Taxable differences
Subtotal
Tax-deductible differences
Provision for bad debts 115,372,531.82 115,290,558.03
Impairment provision for fixed assets 193,629,045.56 193,810,080.67
Accrued substantial maintenance expenditure 715,992,090.00 540,026,651.65
Undue wages and salaries 36,805,619.96 69,552,498.55
Unutilised loss 352,796.16 783,563.60
56
Changes of fair value of financial liabilities held for
6,383,500.14 2,145,521.10
trading
Phoenix Miles Program 156,620,657.22 0.00
Subtotal 1,225,156,240.86 921,608,873.60
(2) Deferred income tax assets and deferred income tax liabilities listed with net amount after offset
□ Applicable √ non-Applicable
Notes to deferred income tax assets and deferred income tax liabilities:
The balance of deferred income tax assets as at June 30th, 2012 increased for 32.94%from that as at December 31st, 2011,
mainly due to substantial maintenance expenditure and confirmed Phoenix Miles award during the current reporting period.
27. Impairment provision
Unit: RMB
Balance as at Increase in Decrease in reporting period Balance as at
Item
period-begin reporting period Reverse Derecognised period-end
1.Provision for bad debts 115,290,558.03 81,973.79 0.00 0.00 115,372,531.82
II. Impairment provision for
0.00 0.00 0.00 0.00 0.00
inventories
III.Impariment provision for
financial assets available for
sale
III.Impariment provision for
held-to-maturity investment
V. Impairment provision for
22,500,000.00 0.00 0.00 0.00 0.00
long-term equity investment
VI. Impairment provision for
investment real estate
VII. Impairment provision for
193,810,080.67 0.00 0.00 181,035.11 193,629,045.56
fixed assets
VIII. Impairment provision
for project materials
IX. Impairment provision for
0.00 0.00 0.00
constructions in progress
X. Impairment provision for
productive biological
materials
Including: impairment
provision for mature
productive biological
materials
XI. Impairment provision for
0.00 0.00 0.00
oil and gas assists
XII. Impairment provision for
0.00 0.00 0.00
intangible assets
XIII. Impairment provision
0.00
for goodwill
XIV. Others
Total 331,600,638.70 81,973.79 0.00 181,035.11 331,501,577.38
28. Other illiquid assets
Nil
29. Short-term borrowings
(1) Classifications
Unit: RMB
Item Amount as at period-end Amount as at period-begin
Secured loans (rights on assets pledged)
57
Mortgages
Guaranteed loans 0.00 317,636,239.20
Unsecured loans 694,765,886.10 450,000,000.00
Total 694,765,886.10 767,636,239.20
29.2 Due short-term borrowings not paid
Nil
30. Financial liabilities held for trading
Unit: RMB
Item Fair value at period-end Fair value at period-begin
Tradable bonds issued
Financial liabilities appointed measure via fair
value and its movement included to current
profits and losses
Derivative financial liabilities 6,383,500.14 2,145,521.10
Other financial liabilities
Total 6,383,500.14 2,145,521.10
Notes:
(1) The principal of immature interest rate swaps amounting to USD 157,283,026.20 as at June 30th, 2012. The
bank-quoted fair value of the immature interest rate swaps as at June 30th, 2012 amounting to CNY-6,383,500.14(USD
-1,009,264.99).
(2) The balance of financial liabilities held for trading as at June 30th, 2012 increased for 197.53% from that as at
December 31st, 2011, mainly due to changes in fair value of interest rate swaps.
31. Notes payable
Unit: RMB
Item Amount at period-end Amount at period-begin
Trade acceptance 0.00 104,587,852.86
Bankers acceptance 0.00 24,959,340.48
Total 0.00 129,547,193.34
Notes:
The balance of notes payable as at June 30th, 2012 decreased for 100% as at December 31st, 2011, mainly due to payment for
due bills.
32. Accounts payable
(1)
Unit: RMB
Item Amount as at period-end Amount as at period-begin
Within 1 year 1,643,714,381.71 1,342,854,460.06
Over 1 year 41,709,131.88 31,003,415.17
Total 1,685,423,513.59 1,373,857,875.23
(2) Accounts payable owed to shareholders with 5% or more voting right during the reporting period
√ Applicable □ non-Applicable
Unit: RMB
Shareholder Amount as at period-end Amount as at period-begin
Air China 4,856,330.98 7,735,879.32
Taikoo (Shandong) Aircraft Engineering 20,316,096.60 23,072,537.89
Company Limited
Aircraft Maintenance and Engineering 2,791,525.72 3,825,794.45
Corporation (Ameco Beijing)
Sichuan International Aero Engine Maintenance 9,411,540.78 8,835,970.40
Co., Ltd.
58
Air China Cargo Co., Ltd. 1,697,687.91 417,427.64
Falcon (Chengdu) Aircraft Engineering Service 862,343.53 1,981,738.08
Company Limited
Total 39,935,525.52 45,869,347.78
33. Advances from customers
(1)
Unit: RMB
Item Amount as at period-end Amount as at period-begin
Within 1 year 227,817,059.40 292,567,049.69
Over 1 year 333,454.25 279,602.73
Total 228,150,513.65 292,846,652.42
(2) Advance from customer received from shareholders who own 5% or more voting rights as at June 30 th, 2012.
□ Applicable √ non-Applicable
34. Employment benefits payable
Unit: RMB
Balance as at
Item Increase in this period Decrease in this period Balance as at period-end
period-begin
1. Wages and
salaries, bonuses, 227,244,844.29 394,583,185.37 489,604,729.98 132,223,299.68
subsidies and
allowances
2. Employee benefits 0.00 22,813,903.85 22,813,903.85 0.00
3. Social insurance 2,612,106.72 62,897,488.24 62,879,854.36 2,629,740.60
Within: ①Medical 0.00 13,730,364.42 13,730,364.42 0.00
insurance
②Basic 0.00 28,540,762.35 28,540,762.35 0.00
retirement insurance
③Annuity 2,612,106.72 15,724,523.72 15,706,889.84 2,629,740.60
fee
④Unemploy 0.00 2,958,141.32 2,958,141.32 0.00
ment fee
⑤Work 0.00 753,930.46 753,930.46 0.00
injury insurance
⑥Pregnancy 0.00 1,189,765.97 1,189,765.97 0.00
insurance
⑦Reserved
funds for 0.00 0.00 0.00 0.00
disable
jobseekers
4. Housing provident
15,290.40 20,113,112.28 19,928,708.24 199,694.44
fund
5. Redemption of
termination of labor 0.00 0.00 0.00 0.00
contract
6. Others 33,866,869.24 7,759,345.67 4,691,702.48 36,934,512.43
Labor union fee and
employee education 33,866,869.24 7,759,345.67 4,691,702.48 36,934,512.43
fee
Non-monetary
0.00 0.00 0.00 0.00
benefits
Total 263,739,110.65 508,167,035.41 599,918,898.91 171,987,247.15
No defaults in employment benefits payable.
Amount of labor union fee and employee education fee is 7,759,345.67, no non-monetary benefits or redemption of
termination of labor contract.
59
35. Taxes payable
Unit: RMB
Item Amount as at period-end Amount as at period-begin
VAT 2,889.52 2,889.52
Consumption Taxes
Operating tax 25,163,400.53 19,366,568.31
Corporate income tax 87,337,820.29 66,816,641.91
Personal income tax 10,209,407.25 4,111,680.70
Urban maintenance and construction surcharge 1,399,942.42 1,116,189.38
Education surcharge 1,683,885.21 1,456,370.22
Property tax 1,137,794.95 1,191,811.73
Tenure tax 8,037.03 135,237.68
Stamp duty 0.00 3,679,689.12
Infrastructure fund for civil aviation 16,948,315.81 16,027,672.27
Construction fund for civil airports 44,201,410.34 36,262,303.33
Withholding income tax 2,632,433.34 17,237,385.96
Withholding operating Tax 584,330.78 715,315.42
Others 1,084,843.09 12,524.02
Total 192,394,510.56 168,132,279.57
36. Interests payable
Unit: RMB
Item Amount as at period-end Amount as at period-begin
Long-term loan interests with interests installment paid
and capital paid at due day
Enterprise bonds interests
Interests of short-term loan
Interests on borrowings 8,136,638.93 8,048,176.38
Total 8,136,638.93 8,048,176.38
37. Dividend payable
Unit: RMB
Reasons for more than1year
Shareholder Amount as at period-end Amount as at period-begin
overdue unpaid
Shandong Fisheries Group 11,940.00 11,940.00
Total 11,940.00 11,940.00 --
38. Other payables
(1)
Unit: RMB
Item Amount as at period-end Amount as at period-begin
Within 1 year 118,027,060.56 93,969,022.74
Over 1 year 77,718,981.03 67,777,605.67
Total 195,746,041.59 161,746,628.41
(2) Other payables owed to shareholders with 5% or more voting right during the reporting period
√ Applicable □ non-Applicable
Unit: RMB
Shareholder Amount as at period-end Amount as at period-begin
SDA Group 6,211,496.94 1,008,583.74
Air China 20,000,000.00 20,000,000.00
Taikoo (Shandong) Aircraft Engineering Company 245,400.00 245,400.00
Limited
60
Shenzhen Airlines Co., Ltd. 1,850,144.00 1,850,144.00
Total 28,307,040.94 23,104,127.74
(3) Significant other payables aged over 1 year
Name of company Amount Age Reason for unsettlement
Air China 20,000,000.00 4 to5 years
Wet lease agreement in force, quality margin pending settlement
Total 20,000,000.00
(4) Explanation on unit of major connected amount for other account payable
Nil
39. Accrued liabilities
Nil
40. Non-current liabilities due within one year
(1)
Unit: RMB
Item Amount as at period-end Amount as at period-begin
Long-term borrowings due within one year 284,153,852.40 258,278,648.16
Long-term payable bonds due within one year
Long-term payables due within one year 131,563,782.58 126,278,712.23
Total 415,717,634.98 384,557,360.39
(2) Long-term borrowings due within one year
Disclosure
Unit: RMB
Item Amount as at period-end Amount as at period-begin
Secured loans (rights on assets pledged) 25,299,600.00 0.00
Secured loans (assets pledged) 258,854,252.40 258,278,648.16
Guaranteed loans
Unsecured loans
Total 284,153,852.40 258,278,648.16
Top five long-term borrowings due within one year
Unit: RMB
Amount at period-end Amount at period-begin
Interest rate
Lender Start date Expiry date Currency Original Presentation Original Presentation
(%)
currency currency currency currency
China
Minsheng Step 50,000,000.0 50,000,000.0
29 June 2004 CNY 0.00 0.00
Bank, Jiefang repayment 0 0
Rd Branch
China Step
41,744,340.0
Development 11 July 2008 repayment USD 6,600,000.00 0.00 0.00
0
Bank
ICBC, Step
25,299,600.0
Dongjiao 30 June 2009 repayment USD 4,000,000.00 0.00 0.00
0
Branch
China Bank Step
of repayment
Communicati 17,700,000.0 17,700,000.0
30 May 2006 CNY 0.00 0.00
ons, Jinan 0 0
Tianqiao
Branch
China Bank Step 13,600,000.0 13,600,000.0
of 3 Dec. 2007 repayment CNY 0.00 0.00
0 0
Communicati
61
ons, Jinan
Tianqiao
Branch
148,343,940.
Total -- -- -- -- -- -- 0.00
00
Note:
Interest rates applicable to the borrowings listed above ranged from 1.0375%~ 7.0500% as at June 30th, 2012.
(3) Long-term payable bonds due within one year
Nil
(4) Long-term payables
Unit: RMB
Interest rate Amount at Condition
Leaser Term Initial amount (%) Interest for
period-end landing
CBD-lease Co., 2005.6-2020.6 1,440,000,000.00 7.473% 57,674,342.61 116,947,109.07 Asset pledged
Ltd.
CALC Jian Zhao 2011.8-2026.8 284,290,146.39 7.05% 18,197,244.77 14,616,673.51 Asset pledged
Limited
Total 1,724,290,146.39 75,871,587.38 131,563,782.58
41. Other non-current liabilities
Nil
42. Long-term borrowings
(1) Disclosure
Unit: RMB
Item Amount at period-end Amount at period-begin
Secured loans (rights on assets pledged) 577,087,291.45 161,774,914.40
Secured loans (assets pledged) 2,620,393,479.62 2,301,107,100.91
Guaranteed loans 0.00 544,127,623.23
Unsecured loans
Total 3,197,480,771.07 3,007,009,638.54
(2) Top five long-term borrowings
Unit: RMB
Amount at period-end Amount at period-begin
Interest rate
Lender Start date Expiry date Currency Original Presentation Original Presentation
(%)
currency currency currency currency
China
Development
50,000,000.0 316,245,000.
Bank, 7 May 2012 USD 0.00 0.00
0 00
Shandong Step
Branch repayment
China
Minsheng 150,000,000. 150,000,000. 150,000,000. 150,000,000.
29 June 2004 CNY
Bank, Jinan Step 00 00 00 00
Branch repayment
ICBC,
24,491,654.6 154,907,266. 26,491,654.6 166,921,266.
Dongjiao 30 June 2009 Step USD
4 43 4 72
Branch repayment
BOC, Jinan Step 26,213,260.0 165,796,248. 26,213,260.0 165,167,129.
21 Dec. 2005 USD
Branch repayment 0 17 0 93
BOC, Jinan Step 26,071,798.0 164,901,515. 26,071,798.0 164,275,792.
19 Oct. 2005 USD
Branch repayment 0 17 0 02
USD
Total -- -- -- -- -- 951,850,029. -- 646,364,188.
62
77 67
Interest rates applicable to the borrowings listed above ranged from 1.0375% to 7.0500% as at June 30th, 2012.
43. Bonds payable
Unit: RMB
Interest
Accrued Interests Interests
Bond Issue payable at Balance at
Bond name Face value Issue date interests in paid in this payable as
maturity amount period-begi period-end
this period period at 2012.6.30
n
Medium-ter 500,000,000 12 June 500,000,000 1,012,916.0 1,012,916.0 501,012,916
3 years 0.00 0.00
m Notes .00 2012 .00 0 0 .00
44. Long-term payables
(1)Top five long-term payables
Unit: RMB
Condition
Leaser Term Initial amount Interest rate Interest Balance at
(%) period-end for
landing
CBD-lease Co., 2005.6-2020.6 1,440,000,000.00 7.473% 223,038,803.80 691,200,000.02 Asset pledged
Ltd.
CALC Jian Zhao 2011.8-2026.8 284,290,146.39 7.05% 126,140,480.47 247,925,064.74 Asset pledged
Limited
(2) Financial lease rentals payable in long-term payables
Unit: RMB
Amount at period-end Amount at period-begin
Leaser Presentation
Original currency Presentation currency Original currency currency
CBD-lease Co., Ltd. 691,200,000.02 751,002,964.49
CALC Jian Zhao Limited 247,925,064.74 253,197,384.85
Total 0.00 939,125,064.76 0.00 1,004,200,349.34
45. Special payable
Nil
46. Other non-current liabilities
Unit: RMB
Item Book balance at period-end Book balance at period-begin
Designated subsidy for snow disaster 3,738,208.34 3,987,958.34
SMS fund 1,000,000.00 1,000,000.00
Phoenix Miles Program 156,620,657.22 127,562,137.01
Designated subsidy for IT construction 10,000,000.00 10,000,000.00
Designated subsidy for civil aviation
17,223,316.18 17,711,566.24
energy-saving program
Total 188,582,181.74 160,261,661.59
Notes to other non-current liabilities, including all kinds of government grants and its amount as at 2012.6.30 related with
assets or profits obtained in reporting period:
(1) Asset-related government grants
Category 2011.12.31 Increase in Decrease in 2012.6.30
reporting period reporting period
3,987,958.34 0.00 249,750.00 3,738,208.34
Designated subsidy for snow disaster
1,000,000.00 0.00 0.00 1,000,000.00
SMS fund
10,000,000.00 0.00 0.00 10,000,000.00
Designated subsidy for IT construction
17,711,566.24 0.00 488,250.06 17,223,316.18
Designated subsidy for civil aviation energy-saving
program
Total 32,699,524.58 0.00 738,000.06 31,961,524.52
63
(2) Phoenix Miles Program
Category 2011.12.31 Increase in Decrease in 2012.6.30
reporting period reporting period
Phoenix Miles Program 127,562,137.01 46,895,376.61 17,836,856.40 156,620,657.22
Total 127,562,137.01 46,895,376.61 17,836,856.40 156,620,657.22
47. Share capital
Unit: RMB
Movement in reporting period(＋/－)
Amount at Shares Amount at
period-begin Share allotment Bonus issue converted from Others Subtotal period-end
accumulated
fund
Total shares 400,000,000 0 0 0 0 0 400,000,000
48. Inventory of shares
Nil
49. Special reserve
Nil
50. Capital reserves
Unit: RMB
Amount at
Item Amount at period-begin Increase in this period Decrease in this period
period-end
Share premium 67,618,282.54 0.00 0.00 67,618,282.54
Other capital reserves 7,792,081.16 0.00 0.00 7,792,081.16
Total 75,410,363.70 0.00 0.00 75,410,363.70
51. Surplus reserves
Unit: RMB
Amount at
Item Amount at period-begin Increase in this period Decrease in this period
period-end
Statutory surplus reserves 199,414,021.75 0.00 0.00 199,414,021.75
Other surplus reserves
Reserve funds
Funds for venture development
Others
Total 199,414,021.75 0.00 0.00 199,414,021.75
52. Reserve for common risks
Nil
53. Undistributed profit
Unit: RMB
Withdrawal or Allocation
Item Amount
Ratio
Balance brought forward 1,374,420,534.36 --
Total amount of balance brought forward
--
(increase+, decrease-)
Adjusted balance brought forward 1,374,420,534.36 --
Add: net profit in reporting period of owner in
191,022,381.16 --
parent company
Less: Statutory surplus reserve
Other surplus reserves
Reserve for common risks
64
Ordinary dividends 160,000,000.00
Ordinary dividends converted to capital
Balance carried forward 1,405,442,915.52 --
54. Operating revenue and operating costs
(1)Disclosure by classification
Unit: RMB
Classification Amount of this period Amount of last period
Principle operating revenue 5,016,118,681.75 4,272,221,904.81
Other operating revenue 56,289,021.23 50,310,187.50
Operating costs 4,094,937,039.01 3,324,900,493.51
(2) Disclosure by operation
√ Applicable □ non-Applicable
Unit: RMB
Amount of this period Amount of last period
Operation
Operating revenue Operating costs Operating revenue Operating costs
Air transportation 4,996,878,206.46 4,080,162,639.35 4,250,871,074.52 3,308,417,132.42
Cargo and logistics 4,343,960.36 1,484,268.69 3,824,790.35 1,514,242.72
Hospitality 7,811,810.36 6,829,054.69 7,357,536.31 6,394,573.47
Training 7,084,704.57 2,423,290.18 10,168,503.63 4,615,212.55
Total 5,016,118,681.75 4,090,899,252.91 4,272,221,904.81 3,320,941,161.16
(3)Disclosure by products
□ Applicable √non-Applicable
(4) Disclosure by regions
√ Applicable □ non-Applicable
Unit: RMB
Amount of this period Amount of last period
Region
Operating costs Operating revenue Operating costs Operating revenue
Domestic 4,858,373,088.02 4,007,238,498.28 4,142,399,659.15 3,258,150,501.87
International 63,311,876.07 29,792,581.61 62,786,007.29 28,065,151.64
Regions 94,433,717.66 53,868,173.02 67,036,238.37 34,725,507.65
Total 5,016,118,681.75 4,090,899,252.91 4,272,221,904.81 3,320,941,161.16
(5) Operating revenue from top five customers
Unit: RMB
Customer Operating revenue The percentage in all operating income of the Company
(%)
Customer 1 324,834,726.64 6.4%
Customer 2 11,847,200.60 0.23%
Customer 3 7,068,968.10 0.14%
Customer 4 6,157,008.00 0.12%
Customer 5 5,813,713.33 0.11%
Total 355,721,616.67 7%
55. Contract project revenue
□ Applicable √non-Applicable
56. Operating tax and surcharges
Unit: RMB
65
Item Amount of this period Amount of last period Calculating and payment standards
Consumption tax
Operating tax 149,559,872.78 127,686,577.18 3%、5%
Urban maintenance and construction
10,295,838.38 9,009,168.71 7%
surcharge
Education surcharge 7,353,096.62 6,343,588.87 3%、2%
Resource tax
Water conservancy construction
1,304,956.56 0.00 1%
funds
Total 168,513,764.34 143,039,334.76 --
57. Gain from changes in fair value
Unit: RMB
Source of fair value change Amount of this period Amount of last period
Financial assets for trading 0.00 0.00
Including: profits of fair value movements of
derivative financial instruments
Financial liabilities for trading
Investment real estate measured by fair value
Others -4,237,979.04 -2,006,791.66
Interest rate swaps -4,237,979.04 -2,051,632.74
HuiLiDa Contracts 0.00 44,841.08
Total -4,237,979.04 -2,006,791.66
Notes:
The balance of changes in fair value as at June 30th, 2012 increased for 111.18% as at December 31st, 2011, mainly due to
changes in fair value of interest rate swaps.
58. Investment income
(1) Disclosure by classification
Unit: RMB
Classification Amount of this period Amount of last period
Investment arising from long-term equity
investments measure using the historical cost 15,295,400.00 11,365,400.00
convention
Investment arising from long-term equity
investments measure using the equity method
Investment arising from disposal of long-term
equity investments
Investment arsing from holding of financial assets
held for trading
Investment arising from holding held-to-maturity
investment
Investment arising from holding financial assets
available for sale
Investment arising from disposal of tradable
financial assets
Investment arising from held-to-maturity investment
Investment arising from financial assets available
for sale
Others -916,894.81 -4,090,085.80
Total 14,378,505.19 7,275,314.20
(2) Investment arsing from long-term equity investments measured using the historical cost convention
Unit: RMB
Investee Amount of this period Amount of last period Reason for change from the previous
66
year
China Travelsky Technology Co., Ltd. 1,565,400.00 1,365,400.00 Change of profit distribution
Sichuan Airlines Co., Ltd. 13,730,000.00 10,000,000.00 Change of profit distribution
Total 15,295,400.00 11,365,400.00 --
(3) Investment arsing from long-term equity investments measured using the equity method
Nil
Notes:
The balance of investment arising as at June 30th, 2012 increased for 97.63% from that as at June 30th 2011, mainly due to
increase of dividends from investee and decrease of interest rate swaps settlement loss.
59. Impairment loss on assets
Unit: RMB
Item Amount of this period Amount of last period
1. Provision for bad debts 81,973.79 783,970.23
2. Impairment provision for inventories
3. Impairment provision for financial assets available for
sale
4. Impairment provision for held-to-maturity investment
5. Impairment provision for long-term equity investment
6. Impairment provision for investment real estate
7. Impairment provision for fixed assets
8. Impairment provision for project materials
9. Impairment provision for projects in progress
10. Impairment provision for productive biological
materials
11. Impairment provision for oil and gas assets
12. Impairment provision for intangible assets
13. Impairment provision for goodwill
14. Others
Total 81,973.79 783,970.23
60. Non-operating income
(1)
Unit: RMB
Classification Amount of this period Amount of last period
Gains from disposals of non-current assets 38,876.45 167,143.06
Including: Gains from disposals of fixed assets 38,876.45 167,143.06
Gains from disposals of intangible assets
Gains for debt restructuring
Gains for non-monetary assets exchanges
Donates accepted
Government grants 6,358,400.06 4,631,000.10
Airport-funded flight-route subsidy 29,098,602.00 12,202,002.00
Others 3,858,980.87 819,827.95
Total 39,354,859.38 17,819,973.11
(2) Government grants
Unit: RMB
Classification Amount of this period Amount of last period Notes
Designated subsidy for snow
249,750.00 182,250.00 Amortisation of utilised subsidy
disaster
Designated subsidy for civil 488,250.06 374,750.10 Amortisation of utilised subsidy
67
aviation energy-saving program
Air route subsidies granted
Others 5,620,400.00 4,074,000.00
by local governments
Total 6,358,400.06 4,631,000.10 --
Notes:
Non-operating income for the current year increased for 120.85% from that for the previous year, mainly due to increased
airport-funded flight route subsidy.
61. Non-operating expenses
Unit: RMB
Classification Amount of this period Amount of last period
Total losses from disposals of non-current assets 9,188,914.83 7,667,031.42
Including: Losses from disposals of fixed assets 9,188,914.83 7,667,031.42
Losses from disposals of intangible assets
Losses from debt restructuring
Loss from non-monetary assets exchange
Donating 10,000.00 0.00
Others 43,159.70 670,573.10
Total 9,242,074.53 8,337,604.52
62. Corporate income tax expenses
Unit: RMB
Classification Amount of this period Amount of last period
Current corporate income tax liability duly recognised 139,248,593.76 155,773,448.97
Adjustment of deferred corporate income tax assets/liabilities -75,886,841.82 -37,440,373.21
Total 63,361,751.94 118,333,075.76
63. Computation of basic earnings per share and diluted earnings per share
2012 Jan-June 2011 Jan-June
Profit for the reporting period Basic Diluted Basic Diluted
earnings per share earnings per share earnings per share earnings per share
0.48 0.48 0.89 0.89
Profit attributable to ordinary
shareholders of the Company
0.43 0.43 0.88 0.88
Profit after adjustment for non-operating
gain/loss attributable to ordinary
shareholders of the Company
Basic earnings per share = P0 ÷S
S = S 0 + S 1 + Si × M i ÷ M 0 － S j × M j ÷ M 0 － Sk
P0: net profits attributable to ordinary shareholders or net profits attributable to ordinary shareholders
after deducting extraordinary gains or losses
S: weighted average of number of listed ordinary shares
S0: number of ordinary shares brought forward
S1: number of shares increased in the reporting period resulting from conversion of accumulated fund
or dividends
Si: number of shares increased in the reporting period resulting from share issues or convertible bond
issues
Sj: number of shares decreased in the reporting period resulting from share buy-backs
Sk: number of shares decreased in the reporting period resulting from share contraction
M0: number of months in the reporting period
Mi: cumulative number of months from the second month of the share number increase month to the
last month of the reporting period
Mj: cumulative number of months from the second month of the share number decrease month to the
last month of the reporting period
Diluted earnings per share = P1 / (S0 + S1 + Si × Mi ÷ M0 － Sj × Mj ÷ M0 － Sk + the weighted average of number of
ordinary shares increased by share warrants, share options and convertible bonds)
P1: net profits attributable to ordinary shareholders or net profits attributable to ordinary shareholders
after deducting extraordinary gains or losses adjusted for dilutive impact in accordance with CAS
and relevant regulations
68
64. Other comprehensive profits
Nil
65. Notes to the consolidated statement of cash flows
(1) Other cash receipts in relation to operating activities
Unit: RMB
Item Amounts
Government grants received 2,996,400.00
Interest income on bank deposits received 1,345,863.46
Cash receipt from non-operating income 616,476.45
Cash receipt from operating balances 68,716,883.74
Total 73,675,623.65
(2)Other cash payments in relation to operating activities
Unit: RMB
Item Amounts
Cash payment for bank charges 2,795,268.13
Cash payment for non-operating expenses 14,283.25
Cash payment to operating balances 40,923,875.31
Cash payment for sales expenses and general and administrative expenses 19,219,655.81
Total 62,953,082.50
(3) Other cash proceeds in relation to investing activities
Nil
(4) Other cash payments in relation to investing activities
Unit: RMB
Item Amounts
Cash payment upon settlement of interest rate swaps 916,894.81
Total 916,894.81
(5) Other cash proceeds in relation to financing activities
Unit: RMB
Item Amounts
Deposit for bankers acceptance received 7,500,000.00
Total 7,500,000.00
(6) Other cash payments in relation to financing activities
Unit: RMB
Item Amounts
Cash payment for aircraft lease rental 102,826,674.86
Handling fees to issue medium-term ticket 1,500,000.00
Total 104,326,674.86
66. Supplementary information to the consolidated statement of cash flows
(1) Supplementary information to the consolidated statement of cash flows
Unit: RMB
Item Amount as at this period Amount as at previous period
1. Cash flows adjusted from net profits: -- --
Net profits 191,022,381.16 353,553,106.70
Add: Impairment losses 81,973.79 783,970.23
Add: Depreciation of non-current assets and productive 331,006,395.60 281,624,782.67
biological assets and losses of fuel
Add: Amortization of intangible assets 720,715.26 349,015.29
69
Add: Amortization of long-term deferred expenses 21,733,719.03 22,034,741.94
Add: Losses on disposals of non-current assets,
intangible assets and long-term assets (minus sign -38,876.45 -167,143.06
representing gains)
Add: Losses arising from scrapping non-current assets 9,188,914.83 7,667,031.42
(minus sign representing gains)
Add: Losses arising from fair value changes (minus sign 4,237,979.04 2,006,791.66
representing gains)
Add: Financial costs (minus sign representing income) 129,114,938.74 47,425,192.08
Add: Investment losses (minus sign representing -14,378,505.19 -7,275,314.20
income)
Add: Decrease of deferred income tax assets (minus -75,886,841.82 -36,927,465.02
sign representing increase)
Add: Increase of deferred income tax liabilities (minus 0.00 -512,908.19
sign representing decrease)
Add: Decrease of inventories (minus sign representing 17,041,799.14 -5,152,041.96
increase)
Add: Decrease of operating accounts receivables (minus -84,546,095.23 -21,488,828.95
sign representing increase)
Add: Increase of operating accounts payables (minus 112,191,483.51 189,400,258.06
sign representing decrease)
Add: Others 0.00 0.00
Net cash flows from operating activities 641,489,981.41 833,321,188.67
2. Non-cash-flow related significant investing and
-- --
financing activities:
Conversion of debt to equity 0.00 0.00
Conversion debt instruction of maturity less than 1 year 0.00 0.00
Non-current assets under financial leases 0.00 0.00
3. Net change of cash and cash equivalents: -- --
Cash carried forward 345,851,446.97 137,466,494.87
Less: Cash brought forward 240,185,747.48 148,606,284.51
Add: Cash equivalents carried forward 0.00 0.00
Less: Cash equivalents brought forward 0.00 0.00
Net increase of cash and cash equivalents 105,665,699.49 -11,139,789.64
(2) Subsidiaries and other operating units obtained or disposal in reporting period
(3) Composition of cash and cash equivalents
Unit: RMB
Item Balance as at period-end Balance as at period-begin
1. Cash 345,851,446.97 240,185,747.48
Including: Cash on hand 918,866.82 464,985.14
Bank deposit capable of immediate payments 344,932,580.15 239,720,762.34
Other monetary assets capable of immediate payments 0.00 0.00
Deposit in CBC capable of immediate payments
Storage of interbank payments
Removal of interbank payments
2. Cash equivalents 0.00 0.00
Including: Debt instruments matured with three months 0.00 0.00
3. Balance of cash and cash equivalents 345,851,446.97 240,185,747.48
70
67. Notes to “Statement of Change in Owner’s Equity”
Nil
VIII Accounting correspondence to assets securitization
Nil
IX Related parties and related party transaction
1. Parent of the company
Unit: RMB
Voting Ultimate
Sharehold
Name of Type of Place of Legal right in controllin
Relations Nature of Capital ing in the Institutio
parent incorporat registratio representa Currency the g party of
hip business registered company n code
company ion n tive company the
(%)
(%) company
Investment
Controllin and
Limited Ma
g managemen 580,000,0 61407164
SDA Group liability Jinan Chongxia t of air
CNY 42% 42% SDA Group
sharehold 00.00 -7
company n transportati
er
on
Notes:
Name of the enterprise: Shandong Aviation Group
Place of SDA: No. 5746, Er Huan East Road, Lixia District, Jinan, Shandong
Date of establishment: February 9, 1995
Organization Code: 61407164-7
Registered capital: RMB 580 million
Business scope: Investment and management on air transport industry; maintenance of aircraft that limit in
maintenance license and ground equipments; service of conferences and exhibition; office service; sales of general
merchandise, artworks and souvenirs; service of accommodation and dinning; retail of tobacco products as well as
housing leasing (operated in sub-branch only).
2. Subsidiaries of the company
Unit: RMB
Sharehol Voting
Place of Legal Nature ding in right in
Full name of Type of Type of Capital Curren Institution
registrati represen of the the
subsidiaries subsidiaries company registered cy code
on tative business compan company
y (%) (%)
Wholly-own Limited Su Transporta
Qingdao International
tion
Air Logistics Centre ed liability Qingdao Zhongm warehousi 30,000,000.00 CNY 100% 100% 733496541
Co., Ltd subsidiary company in ng
Qingdao Feisheng
International
Wholly-own Limited
Aviation Song Pilot
ed liability Qingdao 51,545,500.00 CNY 100% 100% 72557262-0
Technology Yuxia training
subsidiary company
Development Co.,
Ltd
71
3. Joint ventures and Associates of the company
Unit: RMB
Total Total Total
Shareholdi Voting Total net
Legal Total assets amounts of amounts of operation
Type of Place of Nature of Capital ng in the right in the profit of Relationshi Organizatio
Investee representati Currency at liabilities net assets income of
company registration business registered company company reporting p n code
ve period-end as at as at reporting
(%) (%) period
period-end period-end period
1. Joint
-- -- -- -- -- -- -- -- -- -- -- -- -- -- --
ventures
2.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- --
Associates
Shandong
Rainbow Limited Air
13,520,992 175,265,15 -161,744,1
Commercia liability Jinan Zhao Hong transportati 5,000.00 CNY 45% 45% 0.00 170,397.15 Share-join 72497146
.23 4.52 62.29
l Jet Co., company on
Ltd
72
4. Particulars about other related parties
Related party Relationship Institution code
Taikoo (Shandong) Aircraft Engineering Subsidiary of controlling shareholder of
70588297-1
Company Limited the company
Shandong XiangYu Air Technology Co., Subsidiary of controlling shareholder of
720736454
Ltd. the company
Shandong Rainbow Commercial Jet Co., Associate 72497146
Ltd.
Subsidiary of the Second-largest
Shenzhen Airlines Co., Ltd. 19221129-0
shareholder of the company
Subsidiary of the Second-largest
Air China Cargo Co., Ltd. 71093205-6
shareholder of the company
Subsidiary of the Second-largest
China National Aviation Finance Co., Ltd. shareholder of the company 10113699
Sichuan International Aero Engine Subsidiary of the Second-largest
shareholder of the company 71188088-4
Maintenance Co., Ltd.
Aircraft Maintenance and Engineering Subsidiary of the Second-largest
shareholder of the company 62591162-1
Corporation (Ameco Beijing)
Falcon (Chengdu) Aircraft Engineering Subsidiary of the Second-largest
72808856-X
Service Company Limited shareholder of the company
5. Related party transaction
(1) Purchase of goods and services from related parties
Unit: RMB
Amount in this period Amount in last period
Pricing Ratio in Ratio in
Related party Subject of transaction method and similar similar
procedure Amount Amount
transactio transactio
ns (%) ns (%)
Taikoo (Shandong)
Aircraft Engineering Aircraft maintenance Market price 38,243,558.71 12.63% 49,538,490.52 16.9%
Company Limited
SDA Group Office rental, Market price 11,777,701.91 3.6% 6,349,652.29 23.15%
Shandong XiangYu Maintenance
Air Technology Co., Market price 15,520,889.14 5.13% 12,666,040.33 4.32%
Ltd.
Sichuan Maintenance
International Aero
Market price 44,390,291.88 14.66% 15,793,624.02 5.39%
Engine Maintenance
Co., Ltd.
Aircraft
Maintenance and
Engineering Aircraft maintenance Market price 5,761,481.85 1.9% 7,423,638.68 2.53%
Corporation (Ameco
Beijing)
Air China Ground service Market price 4,004,953.71 0.17% 5,195,193.86 0.31%
Air China Cargo
Ground service Market price 1,199,174.99 0.05% 1,252,713.41 0.08%
Co., Ltd.
Falcon (Chengdu)
Aircraft Engineering
Repair Market price 1,949,272.58 0.64% 0.00 0%
Service Company
Limited
Sales goods and services to related parties
Unit: RMB
Related party Subject of transaction Pricing Amount in this period Amount in last period
73
method and Ratio in Ratio in
procedure similar similar
Amount Amount
transactio transactio
ns (%) ns (%)
Air China Services By 4,454,085.60 94.88% 6,000,000.00 76.7%
agreement
(2) Trusteeship and contracting among related parties
Nil
(3) Lease among related parties
Rent out
Unit: RMB
Profit
Type of Status of Amount of Influence to
Expire Pricing confirmed
Lessor Lessee assets assets assets Start date the
dated method in reporting
leased leased leased company
period
Renting
Unit: RMB
Profit
Type of Status of Amount of Influence to
Expiry Pricing confirmed
Lessor Lessee assets assets assets Start date the
dated method in reporting
leased leased leased company
period
Influence
total profit
The 3,244,328.6 By 3,244,328.6
Air China Engine Lease by
company 2 agreement 2
3,244,328.6
2
Influence
Qingdao 1,350,000.0 By 1,350,000.0 total profit
Air China Simulator Lease
Feisheng 0 agreement 0 by1,350,00
0.00
(4) Guarantee among related parties
Nil
(5) Lending among related parties
Unit: RMB
Related party Amount Start date Expiry date Note
Lender
China National Aviation
50,000,000.00 25.7.2011 20.7.2012
Finance Co.
China National Aviation
50,000,000.00 27.7.2011 27.7.2012
Finance Co.
China National Aviation
50,000,000.00 16.8.2011 16.8.2012
Finance Co.
China National Aviation
50,000,000.00 23.8.2011 23.8.2012
Finance Co.
China National Aviation
50,000,000.00 30.8.2011 30.8.2012
Finance Co.
China National Aviation
50,000,000.00 21.3.2012 20.3.2013
Finance Co.
Capital Lent
(6) Assets transferred and debt reconstruction among related parties
(7) Other related party transaction
Related party Pricing Subject of 2012 Jan-June 2011 Jan-June
74
method transaction Amount % of transaction Amount % of
of the same type transaction of
the same type
Air China By agreement Wet lease 325,294,684.73 100.00 383,856,880.00 100.00
Air China By agreement Code-share 459,958.09 100.00 11,245,643.73 100.00
Air China Cargo By agreement Code-share 222,288.64 100.00 1,034,388.87 100.00
Co., Ltd.
Total 325,976,931.46 100.00 396,136,912.60 100.00
6. Accounts balance due from and to related parties
Accounts balance due from related parties
Unit: RMB
Account Related party Amount at period-end Amount at period-begin
Air China 52,195,847.73 54,247,936.00
Shenzhen Airlines Co., 1,849,400.00 1,849,400.00
Accounts receivable Ltd.
Air China Cargo Co., 0.00 3,762,274.92
Ltd.
Shandong XiangYu Air
Advances to suppliers 300,102.30 4,511,590.60
Technology Co., Ltd.
Air China 16,693,822.06 13,859,769.26
Accounts payable Shandong Rainbow
Commercial Jet Co., 109,051,717.65 109,051,717.65
Ltd.
Accounts balance due to related parties
Unit: RMB
Account Related party Amount at period-end Amount at period-begin
Aircraft Maintenance and
Engineering Corporation 2,791,525.72 3,825,794.45
(Ameco Beijing)
Sichuan International Aero
9,411,540.78 8,835,970.40
Engine Maintenance Co., Ltd.
Air China 4,856,330.98 7,735,879.32
Accounts receivable Taikoo (Shandong) Aircraft
Engineering Company 20,316,096.60 23,072,537.89
Limited
Air China Cargo Co., Ltd. 1,697,687.91 417,427.64
Falcon (Chengdu) Aircraft
Engineering Service 862,343.53 1,981,738.08
Company Limited
Air China 20,000,000.00 20,000,000.00
SDA Group 6,211,496.94 1,008,583.74
Accounts payable Taikoo (Shandong) Aircraft
Engineering Company 245,400.00 245,400.00
Limited
Shenzhen Airlines Co., Ltd. 1,850,144.00 1,850,144.00
(X) Share-based payment
1. General state of share-based payment
Nil
2. Share-based payment settled by equity method
Nil
3. Share-based payment settled by cash
Nil
75
4. Services via share-based payment
Nil
5. Modification and termination to share-based payment
Nil
(XI) Contingencies
1. Contingent liabilities and its financial influence caused by pending litigation or arbitration
Nil
2. Contingent liabilities and its financial influence caused by financial guarantee provided to other units
Nil
(XII) Commitments
1. Significant commitments
Commitments of which performance in progress as at June 30 th, 2012
Item 2012.6.30(000)
Within 1 year 1 to 2 years 2 to 3 years Over 3 years Total
Operating lease 716,351.76 738,285.88 726,580.00 4,085,372.92 6,266,590.56
Capital
commitments 1,910,577.84 1,945,803.25 2,148,026.64 1,662,476.79 7,666,884.52
Total 2,626,929.60 2,684,089.13 2,874,606.64 5,747,849.71 13,933,475.08
2. Commitments in last period
Nil
(XIII) Post-balance-sheet-date events
Nil
(XIV) Other significant issues
1. Non-monetary assets exchange
Nil
2. Debt reconstruction
Nil
3. Joint venture
Nil
4. Lease
Nil
5. Financial instruments issued out which can be concerted to shares as at 2012.6.30
Nil
6. Contents and significant changes of annuity plan
Nil
7. Other significant issues need by disclosure
(1) Assets and liabilities measured by fair value
Gain or loss from Impairment
Amount at change Cumulative change provision
Item period-begin in fair value in fair value recognised recognised Amount at period-end
during the current in capital reserve during the
year current year
Financial assets
0.00 0.00 0.00 0.00 0.00
Financial derivatives
76
0.00 0.00 0.00 0.00 0.00
Subtotal
Financial liabilities
2,145,521.10 4,237,979.04 0.00 0.00 6,383,500.14
Financial derivative
2,145,521.10 4,237,979.04 0.00 0.00 6,383,500.14
Subtotal
(2) Financial assets and financial liabilities denominated in foreign currency
Item Gain or loss from Impairment
Amount at change Cumulative change provision
period-begin in fair value in fair value recognised recognised Amount at period-end
during the current in capital reserve during the
year current year
Financial assets
0.00 0.00 0.00 0.00 0.00
Financial derivatives
0.00 0.00 0.00 0.00 0.00
Subtotal
Financial liabilities
2,145,521.10 4,237,979.04 0.00 0.00 6,383,500.14
Financial derivative
2,145,521.10 4,237,979.04 0.00 0.00 6,383,500.14
Subtotal
(XV) Notes to the main elements of the separate financial statements
1. Accounts receivable
(1) Classifications
Unit: RMB
Closing balance Opening balance
Book value Provision for bad debts Book value Provision for bad debts
Classification
Propo
Proporti Proporti Proporti
Amount rtion Amount Amount Amount
on (%) on (%) on (%)
(%)
Accounts receivable of 79.11
182,685,635.96 0.00 0% 133,831,501.87 73.71% 0.00 0%
individual significance %
Categorized accounts receivable:
Categorization by nature 20.89
48,233,095.74 2,411,654.79 5% 47,744,614.85 26.29% 2,387,230.74 5%
of receivables %
20.89
Subtotal of category 48,233,095.74 2,411,654.79 5% 47,744,614.85 26.29% 2,387,230.74 5%
%
Accounts receivable of
individual insignificance 0.00 0% 0.00 0%
subject to individual
assessment for impairment
Total 230,918,731.70 -- 2,411,654.79 -- 181,576,116.72 -- 2,387,230.74 --
Accounts receivable of individual significance subject to individual assessment for impairment
√ Applicable □ non-Applicable
Unit: RMB
Provision for bad
Content Book value Proportion (%) Reason for provision
debt
Individually assessed
BSP 91,459,484.56 0.00 0%
as non
Individually assessed
Air China 52,195,847.73 0.00 0%
as non
Individually assessed
CAAC Settlement Centre 39,030,303.67 0.00 0%
as non
Total 182,685,635.96 0.00 -- --
Categories of accounts receivable subject to provision for bad debts using aging method
77
□Applicable √ non-Applicable
Categories of accounts receivable subject to provision for bad debts by percentage of carrying amount
√ Applicable □ non-Applicable
Unit: RMB
Category Book value Proportion (%) Provision for bad debts
Categorization by nature of receivables 48,233,095.74 5% 2,411,654.79
Total 48,233,095.74 -- 2,411,654.79
Categories of accounts receivable subject to provision for bad debts by other methods
□Applicable √ non-Applicable
Accounts receivable of individual insignificance subject to individual assessment for impairment
□Applicable √ non-Applicable
(2) Other accounts receivable reversed or derecognised in reporting period
Nil
(3) Other accounts receivable cancelled after verification in reporting period
Nil
(4) Other accounts receivables owed by shareholders with 5% or more voting right during the reporting period
√ Applicable □ non-Applicable
Unit: RMB
Closing balance Opening balance
Shareholder Provision for bad Provision for bad
Book value Book value
debts debts
Air China 52,195,847.73 0.00 54,247,936.00 0.00
Total 52,195,847.73 0.00 54,247,936.00 0.00
(5) Nature or contents of other significant accounts receivable
Nil
(6) Top five other receivables
Unit: RMB
Relationship with the % of total accounts
Name of the company Amount Age
company receivable
BSP Non-related party 91,459,484.56 Within 1 year 39.61%
Air China Related party 52,195,847.73 Within 1 year 22.6%
CAAC Settlement Centre Non-related party 39,030,303.67 Within 1 year 16.9%
Hebei Airport Non-related party
Management Co., Ltd,
Shi Jiazhuang 5,200,000.00 Within 1 year 2.25%
International Airport
branch
The peoples government
Non-related party 4,270,061.70 Within 1 year 1.85%
of Luoyang
Total -- 192,155,697.66 -- 83.21%
(7) Other Accounts receivables owed by related parties
Unit: RMB
Relationship with the
Name of the company Amount % of total accounts receivable
company
Second-largest shareholder
Air China 52,195,847.73 22.6%
of the company
Total -- 52,195,847.73 22.6%
(8) Transferred amount of other accounts receivable mismatch with termination conditions
(9) Briefly illustrate related transaction arrangements of assets capitalization with accounts receivables as subject
Nil
2. Other receivables
(1) Classification
Unit: RMB
Classification Closing balance Opening balance
78
Book value Provision for bad debts Book value Provision for bad debts
Propo
Proporti Proporti Proporti
Amount rtion Amount Amount Amount
on (%) on (%) on (%)
(%)
Accounts receivable of 65.65
219,290,764.09 109,051,717.65 49.73% 168,048,800.93 53.15% 109,051,717.65 64.89%
individual significance %
Categorized other receivables:
Categorization by nature 22.56
75,368,933.53 3,768,446.68 5% 67,223,638.48 21.26% 3,361,181.92 5%
of receivables %
22.56
Subtotal of category 75,368,933.53 3,768,446.68 5% 67,223,638.48 21.26% 3,361,181.92 5%
%
Other receivables of
individual insignificance 11.79
39,370,230.99 0.00 0% 80,903,554.97 25.59% 0.00 0%
subject to individual %
assessment for impairment
Total 334,029,928.61 -- 112,820,164.33 -- 316,175,994.38 -- 112,412,899.57 --
Other receivables of individual significance subject to individual assessment for impairment
√ Applicable □ non-Applicable
Unit: RMB
Provision for bad
Content Book value Proportion (%) Reason for provision
debt
Shandong Rainbow Commercial Jet Co., Individually assessed
109,051,717.65 109,051,717.65 100% as non-impaired
Ltd.
Individually assessed
CBD-leasing Co., Ltd. 41,354,563.28 0.00 0%
as non
Beijing FuLaiTe Technology Individually assessed
34,480,941.10 0.00 0%
Development Co., Ltd as non
Individually assessed
Company1 17,709,720.00 0.00 0%
as non
Individually assessed
Air China 16,693,822.06 0.00 0%
as non
Total 219,290,764.09 109,051,717.65 -- --
Categories of other receivables subject to provision for bad debts using aging method
□Applicable √ non-Applicable
Categories of other receivables subject to provision for bad debts by percentage of carrying amount
√ Applicable □ non-Applicable
Unit: RMB
Category Book value Proportion (%) Provision for bad debts
Categorization by nature of receivables 75,368,933.53 5% 3,768,446.68
Total 75,368,933.53 -- 3,768,446.68
Categories of other receivables subject to provision for bad debts by other methods
□Applicable √ non-Applicable
Other receivables of individual insignificance subject to individual assessment for impairment
□Applicable √ non-Applicable
(2) Other receivables reversed or derecognised in reporting period
Other receivables of individual insignificance subject to individual assessment for impairment:
Content Book value Provision for bad debts Proportion (%) Reason for provision
Individually assessed as
Company 2 189,747.00 0.00 0%
non
Individually assessed as
Company 3 632,490.00 0.00 0%
non
Individually assessed as
Company 4 3,339,547.20 0.00 0%
non
Individually assessed as
Company 5 9,842,833.50 0.00 0%
non
79
Individually assessed as
Company 6 790,612.50 0.00 0%
non
Individually assessed as
Company 7 5,945,406.00 0.00 0%
non
Individually assessed as
Company 8 13,268,532.39 0.00 0%
non
Individually assessed as
Company 9 4,338,881.40 0.00 0%
non
China Merchants Bank Individually assessed as
353,438.00 0.00 0%
Phone Payment non
KuqiQian Telephone Individually assessed as
58,199.00 0.00 0%
Payment non
HuiFuTianXia Phone Individually assessed as
610,544.00 0.00 0%
Payment non
Total 39,370,230.99 0.00 -- --
(3) Other receivables cancelled after verification in reporting period
Nil
(4) Other receivables owed by shareholders with 5% or more voting right during the reporting period
√ Applicable □ non-Applicable
Unit: RMB
Closing balance Opening balance
Shareholder Provision for bad Provision for bad
Book value Book value
debts debts
Air China 16,693,822.06 0.00 13,859,769.26 0.00
Total 16,693,822.06 0.00 13,859,769.26 0.00
(5) Nature or contents of other significant accounts receivable
Nil
(6) Top five other receivables
Unit: RMB
Relationship with the % of total other
Name of the company Amount Age
company receivables
Shandong Rainbow Related party 109,051,717.65 4 to 8 years 32.65%
Commercial Jet Co., Ltd.
CBD-leasing Co., Ltd. Non-related party 41,354,563.28 Over 5 years 12.38%
Beijing FuLaiTe Non-related party
Technology 34,480,941.10 Within 1 year 10.32%
Development Co., Ltd
Company1 Non-related party 17,709,720.00 Over 4 years 5.3%
Air China Related party 16,693,822.06 Within 1 year 5%
Total -- 219,290,764.09 -- 65.65%
(7) Other receivables owed by related parties
Unit: RMB
Relationship with the
Name of the company Amount % of total other receivables
company
Shandong Rainbow Commercial
Associate 109,051,717.65 32.65%
Jet Co., Ltd.
Second-largest shareholder
Air China 16,693,822.06 5%
of the company
Qingdao Logistics Wholly-owned subsidiary 23,286,107.07 6.97%
Qingdao Feisheng Wholly-owned subsidiary 218,161.76 0.07%
Total -- 149,249,808.54 44.68%
(8) Transferred amount of other receivables mismatch termination conditions
(9) Briefly illustrate related transaction arrangements of assets capitalization with other receivables as subject
Nil
80
3. Long-term equity investments
Unit: RMB
Reason for Cash
Balance Movemen Balance Impairment
Cost of disagreeme Impairme
provision dividend
Measure at t in at Sharehold Voting nt between
Investee investmen nt recognised in
ment period-be reporting period-en ing (%) right (%) shareholdin
t g and provision in reporting reporting
gin period d period
voting right period
Historical 48,323,20 48,323,20 48,323,20 No
Qingdao 0.00 100% 100% disagreeme 0.00 0.00 0.00
cost 5.97 5.97 5.97
Logistics
convention nt
China
Historical 6,690,000 6,690,000 6,690,000 1,565,400
Travelsky 0.00 0.45% 0.45% No disagre 0.00 0.00
cost .00 .00 .00 .00
Technology ement
convention
Co., Ltd.
Sichuan Historical 35,000,00 35,000,00 35,000,00 13,730,00
Airlines cost 0.00 10% 10% No disagre 0.00 0.00
0.00 0.00 0.00 ement 0.00
Co., Ltd. convention
Jinan
Historical 46,662,10 46,662,10 46,662,10
Internationa 0.00 2.53% 2.53% No disagre 0.00 0.00 0.00
cost 0.00 0.00 0.00
l Airport ement
convention
Co., Ltd.
Historical 57,677,47 57,677,47 57,677,47
Qingdao 0.00 100% 100% No disagre 0.00 0.00 0.00
cost 9.46 9.46 9.46
Feisheng ement
convention
Shandong
Rainbow 22,500,00 22,500,00 22,500,00 22,500,00
Equity 0.00 45% 45% No disagre 0.00 0.00
Commercia 0.00 0.00 0.00 0.00
method ement
l Jet Co.,
Ltd.
216,852,7 216,852,7 216,852,7 22,500,00 15,295,40
Total -- 0.00 -- -- -- 0.00
85.43 85.43 85.43 0.00 0.00
4. Operating revenue and operating costs
(1) Disclosure by classification
Unit: RMB
Item Amount of this period Amount of last period
Principle operating revenue 5,007,345,044.39 4,261,187,760.83
Other operating revenue 56,289,021.23 50,303,684.50
Operation costs 4,092,363,922.98 3,320,114,273.92
(2) Disclosure by operation
√ Applicable □ non-Applicable
Unit: RMB
Amount of this period Amount of last period
Operation
Operating revenue Operating costs Operating revenue Operating costs
Air transportation 4,996,878,206.46 4,080,162,639.35 4,250,871,074.52 3,308,417,132.42
Hospitality 7,811,810.36 6,829,054.69 7,357,536.31 6,394,573.47
Training 2,655,027.57 1,334,442.84 2,959,150.00 1,343,235.68
Total 5,007,345,044.39 4,088,326,136.88 4,261,187,760.83 3,316,154,941.57
(3) Disclosure by product
□Applicable √ non-Applicable
(4) Disclosure by regions
√ Applicable □ non-Applicable
Unit: RMB
Amount of this period Amount of last period
Region
Operating costs Operating revenue Operating costs Operating revenue
Domestic 4,849,599,450.66 4,004,665,382.25 4,131,365,515.17 3,253,364,282.28
International 63,311,876.07 29,792,581.61 62,786,007.29 28,065,151.64
81
Regions 94,433,717.66 53,868,173.02 67,036,238.37 34,725,507.65
Total 5,007,345,044.39 4,088,326,136.88 4,261,187,760.83 3,316,154,941.57
(5) Operating revenue from top five customers
Unit: RMB
% of total
Customer Operating revenue operating
revenue
Customer 1 324,834,726.64 6.41%
Customer 2 11,847,200.60 0.23%
Customer 3 7,068,968.10 0.14%
Customer 4 6,157,008.00 0.12%
Customer 5 5,813,713.33 0.11%
Total 355,721,616.67 7.01%
5. Investment income
(1) Disclosure by classification
Classification Amount of this period Amount of last period
Investment arising from long-term equity investments
15,295,400.00 11,365,400.00
measure using the historical cost convention
Investment arising from long-term equity investments
measure using the equity method
Investment arising from disposal of long-term equity
investments
Investment arsing from holding of financial assets held for
trading
Investment arsing from holding of held-to-maturity
investment
Investment arsing from holding of financial assets available
for sale
Investment arsing from disposal of financial assets available
for sale
Investment arsing from held-to-maturity investment
Investment arsing from financial assets available for sale
Others -916,894.81 -4,090,085.80
Total 14,378,505.19 7,275,314.20
(2) Investment arising from long-term equity investments measured using the historical cost convention
Unit: RMB
Amount of last Reason for change from the previous
Investee Amount of this period year
period
China Travelsky Technology Co., Ltd. 1,565,400.00 1,365,400.00 Change of profit distribution
Sichuan Airlines Co., Ltd. 13,730,000.00 10,000,000.00 Change of profit distribution
Total 15,295,400.00 11,365,400.00 --
(3) Investment arising from long-term equity investments measured using the equity method
Nil
6. Supplementary information to the separate statement of cash flows
Unit: RMB
Supplementary information Amount of the current period Amount of the last period
1．Cash flows adjusted from net profits: -- --
Net profits 187,870,504.52 353,232,383.01
Add: Impairment losses 431,688.81 790,630.51
Add: Depreciation of non-current assets and productive 328,151,445.90 278,737,330.77
biological assets and losses of fuel
82
Add: Amortization of intangible assets 703,387.32 331,687.32
Add: Amortization of long-term deferred expenses 21,703,072.32 22,011,455.94
Add: Losses on disposals of non-current assets, intangible assets -38,876.45 -167,143.06
and long-term assets (minus sign representing gains)
Add: Losses arising from scrapping non-current assets (minus 9,188,914.83 7,667,031.42
sign representing gains)
Add: Losses arising from fair value changes (minus sign 4,237,979.04 2,006,791.66
representing gains)
Add: Financial costs (minus sign representing income) 129,114,938.74 46,605,192.08
Add: Investment losses (minus sign representing income) -14,378,505.19 -7,275,314.20
Add: Decrease of deferred income tax assets (minus sign -76,081,962.43 -36,929,130.10
representing increase)
Add: Increase of deferred income tax liabilities (minus sign 0.00 -512,908.19
representing decrease)
Add: Decrease of inventories (minus sign representing increase) 17,041,799.14 -5,152,041.96
Add: Decrease of operating accounts receivables (minus sign -90,857,063.45 -21,625,169.84
representing increase)
Add: Increase of operating accounts payables (minus sign 110,095,924.57 180,879,161.90
representing decrease)
Add: Others 0.00 0.00
Net cash flows from operating activities 627,183,247.67 820,599,957.26
2．Non-cash-flow related significant investing and financing
-- --
activities:
Conversion of debt to equity 0.00 0.00
Conversion debt instruction of maturity less than 1 year 0.00 0.00
Non-current assets under financial leases 0.00 0.00
3．Net change of cash and cash equivalents: -- --
Cash carried forward 338,895,692.45 130,144,449.45
Less: Cash brought forward 235,921,301.34 143,930,783.00
Add: Cash equivalents carried forward 0.00 0.00
Less: Cash equivalents brought forward 0.00 0.00
Net increase of cash and cash equivalents 102,974,391.11 -13,786,333.55
7. Accrued counter purchased assets and liabilities
Nil
(XVI) Supplementary information
1. Rate of return on net assets and earnings per share
Unit: RMB
Weighted average rate Earnings per share
Profit for the reporting period
of return on net assets (%) Basic EPS Diluted EPS
Profit attributable to ordinary shareholders of 9.13% 0.48 0.48
the Company
Profit after adjustment for non-operating
gain/loss attributable to ordinary shareholders 8.24% 0.43 0.43
of the Company
2. Explanation of inconsistence and its reasons of primary accounting statement of the company
Increasing
Introductions to reasons of
th 31st, December, and
Project 30 , June, 2012 increasing and decreasing
2011 decreasing
changes
changes %
83
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
earning becomes to exchange
Financial expenses 130,250,004.76 43,934,555.41 196.46%
loss compared with the
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
84
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
This financial statements are approved and authorised for issuance by the Board of Directors on August 27, 2012.
85
