Cover
Cover | 12 Months Ended |
Dec. 31, 2019shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2019 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
Trading Symbol | ZNH |
Entity Registrant Name | CHINA SOUTHERN AIRLINES CO LTD |
Entity Central Index Key | 0001041668 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Shell Company | false |
Entity Emerging Growth Company | false |
Entity Voluntary Filers | No |
Entity Interactive Data Current | Yes |
Document Accounting Standard | International Financial Reporting Standards |
Document Annual Report | true |
Entity Address, Country | CN |
Document Transition Report | false |
Document Shell Company Report | false |
Document Registration Statement | false |
Title of 12(b) Security | Ordinary H Shares of par value RMB1.00 per share represented by American Depositary Shares |
Security Exchange Name | NYSE |
Entity Incorporation, State or Country Code | F4 |
A Shares (par value RMB1.00 per share) [member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 8,600,723,089 |
H Shares (par value RMB1.00 per share) [member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 3,666,449,197 |
CONSOLIDATED INCOME STATEMENTS
CONSOLIDATED INCOME STATEMENTS - CNY (¥) ¥ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | [1] | Dec. 31, 2017 | [1],[2] | |
Operating revenue | |||||
Traffic revenue | ¥ 148,117 | ¥ 138,064 | ¥ 121,873 | ||
Other operating revenue | 6,205 | 5,559 | 5,933 | ||
Total operating revenue | 154,322 | 143,623 | 127,806 | ||
Operating expenses | |||||
Flight operation expenses | 70,566 | 76,216 | 62,978 | ||
Maintenance expenses | 13,057 | 12,704 | 11,877 | ||
Aircraft and transportation service expenses | 26,591 | 24,379 | 22,935 | ||
Promotion and selling expenses | 7,755 | 7,036 | 6,881 | ||
General and administrative expenses | 4,073 | 3,770 | 3,391 | ||
Depreciation and amortization | 24,620 | 14,308 | 13,162 | ||
Impairment losses on property, plant and equipment | 18 | 0 | [3] | 324 | [3] |
Others | 1,928 | 1,829 | 1,550 | ||
Total operating expenses | 148,608 | 140,242 | 123,098 | ||
Other net income | 5,124 | 5,438 | 4,448 | ||
Operating profit | 10,838 | 8,819 | 9,156 | ||
Interest income | 74 | 125 | 89 | ||
Interest expense | (5,845) | (3,202) | (2,747) | ||
Share of associates' results | (178) | 263 | 431 | ||
Share of joint ventures' results | 365 | 200 | 99 | ||
Exchange (loss)/gain, net | (1,477) | (1,853) | 1,801 | ||
Changes in fair value of financial assets / liabilities | 265 | 12 | (64) | ||
Remeasurement of the originally held equity interests in a joint venture | 13 | 0 | 109 | ||
Profit before income tax | 4,055 | 4,364 | [3] | 8,874 | [3] |
Income tax | (971) | (1,000) | (1,976) | ||
Profit for the year | 3,084 | 3,364 | 6,898 | ||
Profit attributable to: | |||||
Equity shareholders of the Company | 2,640 | 2,895 | 5,961 | ||
Non-controlling interests | 444 | 469 | 937 | ||
Profit for the year | ¥ 3,084 | ¥ 3,364 | ¥ 6,898 | ||
Earnings per share | |||||
Basic and diluted | ¥ 0.22 | ¥ 0.27 | ¥ 0.60 | ||
[1] | The Group has initially applied IFRS 16 at January 1, 2019 using the modified retrospective approach. Under this approach, comparative information is not restated. See Note 2(b). | ||||
[2] | The Group has initially applied IFRS 15 and IFRS 9 at January 1, 2018. Under the transition methods chosen, comparative information is not restated. See Note 2(b). | ||||
[3] | The Group has initially applied IFRS 16 using the modified retrospective approach and adjusted the opening balances at January 1, 2019 to recognize right-of-use assets and lease liabilities relating to leases which were previously classified as operating leases under IAS 17. In the comparative periods in 2018 and 2017, cash payments under operating leases made by the Group as a lessee of RMB9,920 million and RMB8,996 million, respectively, were included in operating cash outflows in the consolidated cash flow statements. Under IFRS 16, except for short-term lease payments and payments for leases of low value assets not included in the measurement of lease liabilities, all other rentals paid on leases are now split into capital element and interest element and classified as financing cash outflows and operating cash outflows, respectively. Under the modified retrospective approach, the comparative information is not restated. Further details on the impact of the transition to IFRS 16 are set out in Note 2(b). |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - CNY (¥) ¥ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | [1] | Dec. 31, 2017 | [1],[2] | |
Statement of comprehensive income [abstract] | |||||
Profit for the year | ¥ 3,084 | ¥ 3,364 | ¥ 6,898 | ||
Other comprehensive income: Items that will not be reclassified to profit or loss | |||||
Equity investments at fair value through other comprehensive income – net movement in fair value reserve (non-recycling) | (31) | 319 | 0 | [3] | |
Share of other comprehensive income of an associate | 3 | (4) | 0 | ||
Deferred tax relating to above items | 7 | (80) | 0 | ||
Items that may be reclassified subsequently to profit or loss | |||||
Cash flow hedge: fair value movement of derivative financial assets | (72) | 29 | 25 | ||
Fair value movement of available-for-sale financial assets (recycling) | 0 | 0 | 123 | ||
Share of other comprehensive income of an associate | 0 | 0 | 2 | ||
Differences resulting from the translation of foreign currency financial statements | (7) | (2) | 0 | ||
Deferred tax relating to above items | 17 | (7) | (37) | ||
Other comprehensive income for the year | (83) | 255 | 113 | ||
Total comprehensive income for the year | 3,001 | 3,619 | 7,011 | ||
Total comprehensive income attributable to: | |||||
Equity shareholders of the Company | 2,552 | 3,048 | 6,028 | ||
Non-controlling interests | 449 | 571 | 983 | ||
Total comprehensive income for the year | ¥ 3,001 | ¥ 3,619 | ¥ 7,011 | ||
[1] | The Group has initially applied IFRS 16 at January 1, 2019 using the modified retrospective approach. Under this approach, comparative information is not restated. See Note 2(b). | ||||
[2] | The Group has initially applied IFRS 15 and IFRS 9 at January 1, 2018. Under the transition methods chosen, comparative information is not restated. See Note 2(b). | ||||
[3] | The Group has initially applied IFRS 9 at January 1, 2018. Under the transition methods chosen, comparative information is not restated. See Note 2(b). |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | [1] |
Non-current assets | |||
Property, plant and equipment, net | ¥ 84,788 | ¥ 170,692 | |
Construction in progress | 39,222 | 37,791 | |
Right-of-use assets | 153,211 | 0 | |
Lease prepayments | 0 | 2,970 | |
Goodwill | 237 | 237 | |
Interest in associates | 3,322 | 3,181 | |
Interest in joint ventures | 3,124 | 2,812 | |
Aircraft lease deposits | 457 | 594 | |
Other equity instrument investments | 1,049 | 1,080 | |
Other non-current financial assets | 106 | 103 | |
Derivative financial assets | 3 | 75 | |
Deferred tax assets | 2,692 | 1,566 | |
Other assets | 1,979 | 1,776 | |
Total non-current assets | 290,190 | 222,877 | |
Current assets | |||
Inventories | 1,893 | 1,699 | |
Trade receivables | 3,152 | 2,901 | |
Other receivables | 7,860 | 8,015 | |
Cash and cash equivalents | 1,849 | 6,928 | |
Restricted bank deposits | 102 | 116 | |
Prepaid expenses and other current assets | 1,591 | 3,659 | |
Other financial assets | 0 | 440 | |
Derivative financial assets | 218 | 0 | |
Assets held for sale | 0 | 224 | |
Amounts due from related companies | 73 | 90 | |
Total current assets | 16,738 | 24,072 | |
Current liabilities | |||
Derivative financial liabilities | 0 | 44 | |
Borrowings | 37,543 | 38,741 | |
Lease liabilities | 19,998 | 0 | |
Current portion of obligations under finance leases | 0 | 9,555 | |
Trade payables | 2,317 | 2,309 | |
Contract liabilities | 1,610 | 1,693 | |
Sales in advance of carriage | 10,303 | 8,594 | |
Current income tax | 563 | 369 | |
Amounts due to related companies | 170 | 127 | |
Accrued expenses | 15,745 | 15,682 | |
Other liabilities | 7,241 | 6,573 | |
Total current liabilities | 95,490 | 83,687 | |
Non-current liabilities | |||
Borrowings | 13,637 | 15,676 | |
Lease liabilities | 114,076 | 0 | |
Obligations under finance leases | 0 | 62,666 | |
Other non-current liabilities | 1,782 | 2,036 | |
Provision for major overhauls | 3,542 | 2,831 | |
Provision for early retirement benefits | 0 | 2 | |
Deferred benefits and gains | 833 | 906 | |
Deferred tax liabilities | 239 | 676 | |
Total non-current liabilities | 134,109 | 84,793 | |
Net assets | 77,329 | 78,469 | |
Capital and reserves | |||
Share capital | 12,267 | 12,267 | |
Reserves | 51,839 | 52,990 | |
Total equity attributable to equity shareholders of the Company | 64,106 | 65,257 | |
Non-controlling interests | 13,223 | 13,212 | |
Total equity | ¥ 77,329 | ¥ 78,469 | |
[1] | The Group has initially applied IFRS 16 at January 1, 2019 using the modified retrospective approach. Under this approach, comparative information is not restated. See Note 2(b). |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - CNY (¥) ¥ in Millions | Total | Share capital [Member] | Share premium [member] | Fair value reserve [member]Fair value reserve (recycling) [member] | Fair value reserve [member]Fair value reserve (non-recycling) [member] | Other reserves [member] | Retained earnings [member] | Total attributable to equity shareholders of the Company [Member] | Non-controlling interests [member] | ||
Beginning balance at Dec. 31, 2016 | ¥ 54,976 | ¥ 9,818 | ¥ 14,131 | ¥ 209 | ¥ 0 | ¥ 2,078 | ¥ 17,220 | ¥ 43,456 | ¥ 11,520 | ||
Changes in equity | |||||||||||
Profit for the year | 6,898 | [1],[2] | 0 | 0 | 0 | 0 | 0 | 5,961 | 5,961 | 937 | |
Other comprehensive income | 113 | [1],[2] | 0 | 0 | 66 | 0 | 1 | 0 | 67 | 46 | |
Total comprehensive income for the year | 7,011 | [1],[2] | 0 | 0 | 66 | 0 | 1 | 5,961 | 6,028 | 983 | |
Appropriations to reserves | 0 | 0 | 0 | 0 | 0 | 492 | (492) | 0 | 0 | ||
Dividends relating to the prior year | (982) | 0 | 0 | 0 | 0 | 0 | (982) | (982) | 0 | ||
Issuance of shares | 1,321 | 270 | 1,051 | 0 | 0 | 0 | 0 | 1,321 | 0 | ||
Capital injection by non-controlling interests in subsidiaries | 404 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 404 | ||
Dilution and change in non-controlling interests and other reserves | 74 | 0 | 0 | 0 | 0 | 113 | 0 | 113 | (39) | ||
Distributions to non-controlling interests | (261) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (261) | ||
Ending balance at Dec. 31, 2017 | [1],[2] | 62,543 | 10,088 | 15,182 | 275 | 0 | 2,684 | 21,707 | 49,936 | 12,607 | |
Impact on initial application of IFRS 15 (Note 2(b)) | 579 | 0 | 0 | 0 | 0 | 0 | 526 | 526 | 53 | ||
Impact on initial application of IFRS 9 (Note 2(b)) | 111 | 0 | 0 | (240) | 303 | 0 | 40 | 103 | 8 | ||
Adjusted balance | 63,233 | 10,088 | 15,182 | 35 | 303 | 2,684 | 22,273 | 50,565 | 12,668 | ||
Changes in equity | |||||||||||
Profit for the year | 3,364 | [2] | 0 | 0 | 0 | 0 | 0 | 2,895 | 2,895 | 469 | |
Other comprehensive income | 255 | [2] | 0 | 0 | 22 | 133 | (2) | 0 | 153 | 102 | |
Total comprehensive income for the year | 3,619 | [2] | 0 | 0 | 22 | 133 | (2) | 2,895 | 3,048 | 571 | |
Appropriations to reserves | 0 | 0 | 0 | 0 | 0 | 221 | (221) | 0 | 0 | ||
Dividends relating to the prior year | (1,009) | 0 | 0 | 0 | 0 | 0 | (1,009) | (1,009) | 0 | ||
Issuance of shares | 12,649 | 2,179 | 10,470 | 0 | 0 | 0 | 0 | 12,649 | 0 | ||
Capital injection by non-controlling interests in subsidiaries | 72 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 72 | ||
Changes in other reserves | 4 | 0 | 0 | 0 | 0 | 4 | 0 | 4 | 0 | ||
Distributions to non-controlling interests | (99) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (99) | ||
Ending balance at Dec. 31, 2018 | [2] | 78,469 | 12,267 | 25,652 | 57 | 436 | 2,907 | 23,938 | 65,257 | 13,212 | |
Impact on initial application of IFRS 16 (Note 2(b)) | (3,462) | 0 | 0 | 0 | 0 | (272) | (2,852) | (3,124) | (338) | ||
Adjusted balance | 75,007 | 12,267 | 25,652 | 57 | 436 | 2,635 | 21,086 | 62,133 | 12,874 | ||
Changes in equity | |||||||||||
Profit for the year | 3,084 | 0 | 0 | 0 | 0 | 0 | 2,640 | 2,640 | 444 | ||
Other comprehensive income | (83) | 0 | 0 | (55) | (27) | (6) | (88) | 5 | |||
Total comprehensive income for the year | 3,001 | 0 | 0 | (55) | (27) | (6) | 2,640 | 2,552 | 449 | ||
Appropriations to reserves | 0 | 0 | 0 | 0 | 0 | 181 | (181) | 0 | 0 | ||
Dividends relating to the prior year | (613) | 0 | 0 | 0 | 0 | 0 | (613) | (613) | 0 | ||
Acquisition of non-controlling interests in a subsidiary | (24) | 0 | 0 | 0 | 0 | (10) | 0 | (10) | (14) | ||
Changes in other reserves | 44 | 0 | 0 | 0 | 0 | 44 | 0 | 44 | 0 | ||
Distributions to non-controlling interests | (86) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (86) | ||
Ending balance at Dec. 31, 2019 | ¥ 77,329 | ¥ 12,267 | ¥ 25,652 | ¥ 2 | ¥ 409 | ¥ 2,844 | ¥ 22,932 | ¥ 64,106 | ¥ 13,223 | ||
[1] | The Group has initially applied IFRS 15 and IFRS 9 at January 1, 2018. Under the transition methods chosen, comparative information is not restated. See Note 2(b). | ||||||||||
[2] | The Group has initially applied IFRS 16 at January 1, 2019 using the modified retrospective approach. Under this approach, comparative information is not restated. See Note 2(b). |
CONSOLIDATED CASH FLOW STATEMEN
CONSOLIDATED CASH FLOW STATEMENTS - CNY (¥) ¥ in Millions | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Operating activities | ||||||
Cash generated from operating activities | ¥ 39,728 | ¥ 21,174 | [1] | ¥ 23,478 | [1] | |
Interest received | 67 | 131 | [1] | 119 | [1] | |
Interest paid | (7,014) | (4,255) | [1] | (3,758) | [1] | |
Income tax paid | (1,606) | (1,662) | [1] | (2,107) | [1] | |
Net cash generated from operating activities | 31,175 | 15,388 | [1] | 17,732 | [1] | |
Investing activities | ||||||
Acquisition of subsidiaries, net of cash acquired | 176 | 6 | [1] | (682) | [1] | |
Proceeds from disposal of property, plant and equipment and land use right | 814 | 3,550 | [1] | 5,922 | [1] | |
Proceeds from sale of a joint venture | 0 | 0 | [1] | 7 | [1] | |
Proceeds from disposal of other financial assets | 492 | 0 | [1] | 0 | [1] | |
Acquisition of other financial assets | (50) | (440) | [1] | 0 | [1] | |
Dividends received from associates | 84 | 114 | [1] | 195 | [1] | |
Dividends received from joint ventures | 177 | 144 | [1] | 9 | [1] | |
Dividends received from other investments in equity securities and available-for-sale financial assets | 0 | 0 | [1] | 18 | [1] | |
Dividends received from other investments in equity and other non-current financial assets | 22 | 20 | [1] | 0 | [1] | |
Acquisition of term deposits | (43) | (264) | [1] | (313) | [1] | |
Proceeds from maturity of term deposits | 264 | 313 | [1] | 568 | [1] | |
Acquisition of property, plant and equipment and other assets | (15,622) | (24,033) | [1] | (13,846) | [1] | |
Capital injection into associates | (500) | 0 | [1] | (185) | [1] | |
Acquisition of an associate | (386) | 0 | [1] | 0 | [1] | |
Payments for aircraft lease deposits | (6) | (53) | [1] | (40) | [1] | |
Refunds of aircraft lease deposits | 151 | 126 | [1] | 111 | [1] | |
Net cash used in investing activities | (14,427) | (20,517) | [1] | (8,236) | [1] | |
Financing activities | ||||||
Dividends paid to equity shareholders of the Company | (613) | (1,009) | [1] | (982) | [1] | |
Proceeds from issuance of shares | 0 | 10,908 | [1] | 1,321 | [1] | |
Proceeds from bank borrowings | 33,985 | 34,385 | [1] | 42,854 | [1] | |
Proceeds from corporate bonds | 7,497 | 2,000 | [1] | 0 | [1] | |
Proceeds from issuance of ultra-short-term financing bills | 43,489 | 5,500 | [1] | 1,000 | [1] | |
Repayment of bank borrowings | (50,374) | (34,260) | [1] | (18,311) | [1] | |
Capital Element Of Lease Rentals Paid | (17,784) | 0 | [1] | 0 | [1] | |
Repayment of principal under finance lease obligations | 0 | (10,433) | [1] | (9,835) | [1] | |
Repayment of ultra-short-term financing bills | (25,000) | (1,500) | [1] | (22,986) | [1] | |
Repayment of corporate bonds | (12,951) | (345) | [1] | 0 | [1] | |
Capital injections by non-controlling interests in subsidiaries | 0 | 72 | [1] | 404 | [1] | |
Dividends paid to non-controlling interests | (82) | (98) | [1] | (261) | [1] | |
Net cash (used in)/generated from financing activities | (21,833) | 5,220 | [1] | (6,796) | [1] | |
Net (decrease)/increase in cash and cash equivalents | (5,085) | 91 | [1] | 2,700 | [1] | |
Cash and cash equivalents at January 1 | [1] | 6,928 | 6,826 | 4,152 | ||
Exchange gain/(loss) on cash and cash equivalents | 6 | 11 | [1] | (26) | [1] | |
Cash and cash equivalents at December 31 | ¥ 1,849 | ¥ 6,928 | [1] | ¥ 6,826 | [1] | |
[1] | The Group has initially applied IFRS 16 at January 1, 2019 using the modified retrospective approach. Under this approach, comparative information is not restated. See Note 2(b). |
Corporate information
Corporate information | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Corporate information | 1 Corporate information China Southern Airlines Company Limited (the “Company”), a joint stock limited company, was incorporated in the People’s Republic of China (the “PRC”) on March 25, 1995. The address of the Company’s registered office is Unit 301, 3/F, Office Tower, Guanhao Science Park Phase I, 12 Yuyan Street, Huangpu District, Guangzhou, Guangdong Province, the PRC. The Company and its subsidiaries (the “Group”) are principally engaged in the operation of civil aviation, including the provision of passenger, cargo, mail delivery and other extended transportation services. The Company’s majority interest is owned by China Southern Air Holding Limited Company (“CSAH”), a state-owned enterprise incorporated in the PRC. The Company’s shares are traded on the Shanghai Stock Exchange, The Stock Exchange of Hong Kong Limited and the New York Stock Exchange. |
Significant accounting policies
Significant accounting policies | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Significant accounting policies | 2 Significant accounting policies The consolidated financial statements have been prepared in accordance with all applicable International Financial Reporting Standards (“IFRSs”), which collective term includes all applicable individual IFRSs, International Accounting Standards (“IASs”) and Interpretations issued by the International Accounting Standards Board (the “IASB”). Significant accounting policies adopted by the Group are disclosed below. The IASB has issued certain new and revised IFRSs that are first effective for the current accounting period of the Group. Note 2(b) provides information on any changes in accounting policies resulting from initial application of these developments to the extent that they are relevant to the Group for the current accounting period reflected in these financial statements. (a) Basis of preparation The consolidated financial statements comprise the Group and the Group’s interest in associates and joint ventures. The measurement basis used in the preparation of the consolidated financial statements is the historical cost basis except that the following assets and liabilities are stated at their fair value as explained in the accounting policies set out below: • other equity instrument investments (see Note 2(f)); • other non-current • other financial assets (see Note 2(f)); and • derivative financial assets / liabilities (see Note 2(g)). Non-current The preparation of financial statements in conformity with IFRSs requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. Judgements made by management in the application of IFRSs that have significant effect on the financial statements and major sources of estimation uncertainty are discussed in Note 3. (b) Changes in accounting policies (A) New IFRSs and amendments that are first effective for the year ended December 31, 2019 The IASB has issued a new IFRS, IFRS 16, Leases Except for IFRS 16, Leases IFRS 16, Leases IFRS 16 replaces IAS 17, Leases Determining whether an arrangement contains a lease Operating leases – incentives Evaluating the substance of transactions involving the legal form of a lease right-of-use IFRS 16 also introduces additional qualitative and quantitative disclosure requirements which aim to enable users of the financial statements to assess the effect that leases have on the financial position, financial performance and cash flows of an entity. The Group has initially applied IFRS 16 as from January 1, 2019. The Group has elected to use the modified retrospective approach and has therefore recognized the cumulative effect of initial application as an adjustment to the opening balance of equity at January 1, 2019. Comparative information has not been restated and continues to be reported under IAS 17. Further details of the nature and effect of the changes to previous accounting policies and the transition options applied are set out below: a. New definition of a lease The change in the definition of a lease mainly relates to the concept of control. IFRS 16 defines a lease on the basis of whether a customer controls the use of an identified asset for a period of time, which may be determined by a defined amount of use. Control is conveyed where the customer has both the right to direct the use of the identified asset and to obtain substantially all of the economic benefits from that use. The Group applies the new definition of a lease in IFRS 16 only to contracts that were entered into or changed on or after January 1, 2019. For contracts entered into before January 1, 2019, the Group has used the transitional practical expedient to grandfather the previous assessment of which existing arrangements are or contain leases. Accordingly, contracts that were previously assessed as leases under IAS 17 continue to be accounted for as leases under IFRS 16 and contracts previously assessed as non-lease b. Lessee accounting and transitional impact IFRS 16 eliminates the requirement for a lessee to classify leases as either operating leases or finance leases, as was previously required by IAS 17. Instead, the Group is required to capitalize all leases when it is the lessee, including leases previously classified as operating leases under IAS 17, other than those short-term leases and leases of low-value At the date of transition to IFRS 16 (i.e. January 1, 2019), the Group determined the length of the remaining lease terms and measured the lease liabilities for the leases previously classified as operating leases at the present value of the remaining lease payments, discounted using the relevant incremental borrowing rates at January 1, 2019. The incremental borrowing rates range used for determination of the present value of the remaining lease payments was 4.75%~4.90%. Right-of-use • their carrying amount as if IFRS 16 had been applied since the commencement date, discounted using the lessee’s incremental borrowing rate at the date of initial application—the Group applied this approach to its aircraft and engine leases; or • an amount equal to the lease liability, adjusted by the amount of any prepaid or accrued lease payments—the Group applied this approach to all other leases. To ease the transition to IFRS 16, the Group applied the following recognition exemption and practical expedients at the date of initial application of IFRS 16: • the Group elected not to apply the requirements of IFRS 16 in respect of the recognition of lease liabilities and right-of-use • excluded initial direct costs from the measurement of the right-of-use • when measuring the lease liabilities at the date of initial application of IFRS 16, the Group applied a single discount rate to a portfolio of leases with reasonably similar characteristics (such as leases with a similar remaining lease term for a similar class of underlying asset in a similar economic environment); and • when measuring the right-of-use The following table reconciles the operating lease commitments as disclosed in Note 51(b) as at December 31, 2018 to the opening balance for lease liabilities recognized as at January 1, 2019: January 1, 2019 Operating lease commitments at December 31, 2018 75,729 Less: commitments relating to leases exempt from capitalization: - short-term leases, other leases with remaining lease term ending on or before December 31, 2019 and leases of low-value (924 ) - leases contracts entered before December 31, 2018 but the lease period start after January 1, 2019 (16,612 ) Less: total future interest expenses (10,037 ) Present value of remaining lease payments, discounted using the incremental borrowing rates at January 1, 2019 48,156 Add: finance lease liabilities recognized as at December 31, 2018 72,221 Total lease liabilities recognized at January 1, 2019 120,377 So far as the impact of the adoption of IFRS 16 on leases previously classified as finance leases is concerned, the Group is not required to make any adjustments at the date of initial application of IFRS 16, other than changing the captions for the balances. Accordingly, instead of “obligations under finance leases”, these amounts are included within “lease liabilities”, and the depreciated carrying amount of the corresponding leased assets is identified as right-of-use The following table summarizes the impacts of the adoption of IFRS 16 on the Group’s consolidated statement of financial position: Adoption of IFRS 16 Carrying December 31, Remeasurement Reclassification Carrying January 1, RMB million RMB million RMB million RMB million Line items in the consolidated statement of financial position impacted by the adoption of IFRS 16: Property, plant and equipment, net 170,692 — (88,880 ) 81,812 Right-of-use — 45,437 91,914 137,351 Lease prepayments 2,970 — (2,970 ) — Interest in associates 3,181 (527 ) — 2,654 Deferred tax assets 1,566 717 — 2,283 Other assets 1,776 — (210 ) 1,566 Total non-current 222,877 45,627 (146 ) 268,358 Prepaid expenses and other current assets 3,659 (811 ) — 2,848 Total current assets 24,072 (811 ) — 23,261 Lease liabilities — 6,969 9,952 16,921 Current portion of obligations under finance leases 9,555 — (9,555 ) — Accrued expenses 15,682 (83 ) (397 ) 15,202 Total current liabilities 83,687 6,886 — 90,573 Net current liabilities 59,615 7,697 — 67,312 Total assets less current liabilities 163,262 37,930 (146 ) 201,046 Line items in the consolidated statement of financial position impacted by the adoption of IFRS 16: Lease liabilities — 40,790 62,666 103,456 Obligations under finance leases 62,666 — (62,666 ) — Provision for major overhauls 2,831 780 — 3,611 Deferred benefits and gains 906 — (146 ) 760 Deferred tax liabilities 676 (178 ) — 498 Total non-current 84,793 41,392 (146 ) 126,039 Net assets 78,469 (3,462 ) — 75,007 Reserves 52,990 (3,124 ) — 49,866 Total equity attributable to equity shareholders of the Company 65,257 (3,124 ) — 62,133 Non-controlling 13,212 (338 ) — 12,874 Total equity 78,469 (3,462 ) — 75,007 c. Impact on the financial result and cash flows of the Group After the initial recognition of right-of-use right-of-use In the cash flow statement, the Group as a lessee is required to split rentals paid under capitalized leases into their capital element and interest element (see Note 34(c)). The capital element is classified as financing cash outflows, similar to how leases previously classified as finance leases under IAS 17 were treated, rather than as operating cash outflows, as was the case for operating leases under IAS 17. Although total cash flows are unaffected, the adoption of IFRS 16 therefore results in a significant change in presentation of cash flows within the cash flow statement (see Note 34(d)). The following tables give an indication of the estimated impact of the adoption of the IFRS 16 on the Group’s financial result and cash flows for the year ended December 31, 2019, by adjusting the amounts reported under IFRS 16 in these consolidated financial statements to compute estimates of the hypothetical amounts that would have been recognized under IAS 17 if this superseded standard had continued to apply to 2019 instead of IFRS 16, and by comparing these hypothetical amounts for 2019 with the actual 2018 corresponding amounts which were prepared under IAS 17. 2019 2018 Amounts under IFRS 16 Add back: IFRS 16 Add back: Deduct: estimated leases as if Hypothetical for 2019 as if under IAS 17 Compared to (A) (B) (C) (D) (E=A+B+C-D) RMB million RMB million RMB million RMB million RMB million RMB million Financial result for the year ended December 31, 2019 impacted by the adoption of IFRS 16: Operating profit 10,838 7,580 — 9,491 8,927 8,819 Interest expense (5,845 ) 2,380 — — (3,465 ) (3,202 ) Exchange loss, net (1,477 ) 756 — — (721 ) (1,853 ) Share of associates’ results (178 ) — 216 — 38 263 Profit before income tax 4,055 10,716 216 9,491 5,496 4,364 Profit for the year 3,084 10,716 216 9,491 4,525 3,364 2019 2018 Amounts under IFRS 16 Estimated (Notes (i) & (ii)) Hypothetical IAS 17 Compared to (A) (B) (C=A+B) RMB million RMB million RMB million RMB million Line items in the consolidated cash flow statement for the year ended December 31, 2019 impacted by the adoption of IFRS 16: Cash generated from operating activities 39,728 (9,491 ) 30,237 21,174 Interest paid (7,014 ) 2,380 (4,634 ) (4,255 ) Net cash generated from operating activities 31,175 (7,111 ) 24,064 15,388 Capital element of lease rentals paid (Note (iii)) (17,784 ) 7,111 (10,673 ) (10,433 ) Net cash (used in)/generated from financing activities (21,833 ) 7,111 (14,722 ) 5,220 Notes: (i) The “estimated amounts related to operating leases” is an estimate of the amounts of the cash flows in 2019 that relate to leases which would have been classified as operating leases, if IAS 17 had still applied in 2019. This estimate assumes that there were no differences between rentals and cash flows and that all of the new leases entered into in 2019 would have been classified as operating leases under IAS 17, if IAS 17 had still applied in 2019. Any potential net tax effect is ignored. (ii) In this impact table these cash outflows are reclassified from financing to operating in order to compute hypothetical amounts of net cash generated from operating activities and net cash used in financing activities as if IAS 17 still applied. (iii) The capital element of finance leases under IAS 17 previously presented as “Repayment of principal under finance lease obligations” in 2018 consolidated cash flow statement. d. Investment properties Under IFRS 16, the Group is required to account for all leasehold properties as investment properties when these properties are held to earn rental income and/or for capital appreciation (“leasehold investment properties”). The adoption of IFRS 16 does not have a significant impact on the Group’s consolidated financial statements as the Group previously elected to apply IAS 40, Investment properties e. Lessor accounting In addition to leasing out the investment property referred to in paragraph d. above, the Group leases out a number of items of consumable spare parts and maintenance materials as the lessor of operating leases. The accounting policies applicable to the Group as a lessor remain substantially unchanged from those under IAS 17. Under IFRS 16, when the Group acts as an intermediate lessor in a sublease arrangement, the Group is required to classify the sublease as a finance lease or an operating lease by reference to the right-of-use (B) New IFRSs and amendments that are first effective for the year ended December 31, 2018 The IASB has issued a number of new IFRSs and amendments to IFRSs that are first effective for the year ended December 31, 2018 of the Group. Of these, the following developments are relevant to the Group’s financial statements: • IFRS 9, Financial instruments • IFRS 15, Revenue from contracts with customers • IFRIC 22, Foreign currency transactions and advance consideration (i) IFRS 9, Financial instruments IFRS 9 replaces IAS 39, Financial instruments: recognition and measurement non-financial The Group has applied IFRS 9 retrospectively to items that existed at January 1, 2018 in accordance with the transition requirements. The Group has recognized the cumulative effect of initial application as an adjustment to the opening equity at January 1, 2018. Therefore, comparative information continues to be reported under IAS 39. The following table summarizes the impact of transition to IFRS 9 on retained earnings and reserves and the related tax impact at January 1, 2018. Retained earnings RMB million Transferred from fair value reserve (recycling) relating to financial assets now measured at fair value through profit or loss (FVPL) 30 Remeasurement of other investments in equity securities now measured at FVPL at January 1, 2018 23 Related tax (5 ) Effect of the above changes on non-controlling (8 ) Net increase in retained earnings at January 1, 2018 40 Fair value reserve (recycling) Transferred to retained earnings relating to financial assets now measured at FVPL (30 ) Transferred to fair value reserve (non-recycling) (210 ) Net decrease in fair value reserve (recycling) at January 1, 2018 (240 ) Fair value reserve (non-recycling) Transfer and remeasurement effect of other investments in equity securities now measured at FVOCI at January 1, 2018 334 Related tax (31 ) Net increase in fair value reserve (non-recycling) 303 Non-controlling Remeasurement of other investments in equity securities now measured at FVPL in non-controlling 8 Further details of the nature and effect of the changes to previous accounting policies and the transition approach are set out below: (a) Classification of financial assets and financial liabilities IFRS 9 categories financial assets into three principal classification categories: measured at amortized cost, at FVOCI and at FVPL. These supersede IAS 39’s categories of held-to-maturity available-for-sale The following table shows the original measurement categories for each class of the Group’s financial assets under IAS 39 and reconciles the carrying amounts of those financial assets determined in accordance with IAS 39 to those determined in accordance with IFRS 9. IAS 39 carrying Reclassification Remeasurement IFRS 9 carrying RMB million RMB million RMB million RMB million Financial assets measured at FVOCI (non-recyclable) Other equity instrument investments — 637 124 761 Financial assets carried at FVPL Other non-current financial assets — 88 23 111 Financial assets classified as available-for-sale Available-for-sale 622 (622 ) — — Other investments in equity securities 103 (103 ) — — Note: (i) For an explanation of how the Group classifies and measures financial assets and recognizes related gains and losses under IFRS 9, see respective accounting policy notes in Notes 2(f), (g), (l)(i), (o) and (s). The measurement categories for all financial liabilities remain the same, except for financial guarantee contracts (see Note 2(l)(ii)). The carrying amounts for all financial liabilities (including financial guarantee contracts) at January 1, 2018 have not been impacted by the initial application of IFRS 9. The Group had not designated or de-designated (b) Credit losses IFRS 9 replaces the “incurred loss” model in IAS 39 with the “expected credit losses” (“ECL”) model. The ECL model requires an ongoing measurement of credit risk associated with a financial asset and therefore recognizes ECLs earlier than under the “incurred loss” accounting model in IAS 39. The Group applies the new ECL model to the following items: • financial assets measured at amortized cost (including cash and cash equivalents and trade and other receivables); • lease receivables; and • financial guarantee contracts issued (see Note 2(l)(ii)). For further details on the Group’s accounting policy for accounting for credit losses, see Notes 2(l)(i) and (ii). The adoption of ECL model under IFRS 9 has no material impact on the Group. (c) Hedge accounting The Group has elected to adopt the new general hedge accounting model in IFRS 9. Depending on the complexity of the hedge, this new accounting model allows a more qualitative approach to assessing hedge effectiveness compared to IAS 39 to be applied, and the assessment is always forward-looking. The adoption of IFRS 9 has not had a significant impact on the Group’s financial statements in this regard. (d) Transition Changes in accounting policies resulting from the adoption of IFRS 9 have been applied retrospectively, except as described below: • Information relating to comparative periods has not been restated. Differences in the carrying amounts of financial assets resulting from the adoption of IFRS 9 are recognized in retained earnings and reserves as at January 1, 2018. Accordingly, the information presented for 2017 continues to be reported under IAS 39 and thus may not be comparable with the current period. • The following assessments have been made on the basis of the facts and circumstances that existed at January 1, 2018 (the date of initial application of IFRS 9 by the Group): • the determination of the business model within which a financial asset is held; and • the designation of certain investments in equity instruments not held for trading to be classified as at FVOCI (non-recycling). • If, at the date of initial application, the assessment of whether there has been a significant increase in credit risk since initial recognition would have involved undue cost or effort, a lifetime ECL has been recognized for that financial instrument. • All hedging relationships designated under IAS 39 at December 31, 2017 met the criteria for hedge accounting under IFRS 9 at January 1, 2018 and are therefore regarded as continuing hedging relationships. Changes to hedge accounting policies have been applied prospectively. (ii) IFRS 15, Revenue from contracts with customers IFRS 15 establishes a comprehensive framework for recognizing revenue and some costs from contracts with customers. IFRS 15 replaces IAS 18, Revenue Construction contracts IFRS 15 also introduces additional qualitative and quantitative disclosure requirements which aim to enable users of the financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The Group has elected to use the cumulative effect transition method and has recognized the cumulative effect of initial application as an adjustment to the opening balance of equity at January 1, 2018. Therefore, comparative information has not been restated and continues to be reported under IAS 11 and IAS 18. As allowed by IFRS 15, the Group has applied the new requirements only to contracts that were not completed before January 1, 2018. The following table summarizes the impact of transition to IFRS 15 on total equity at January 1, 2018: RMB million Total equity Earlier recognition of ticket breakage revenue 682 Change in measurement of revenue under frequent flyer award programs 89 Related income tax (192 ) Total equity 579 Representing: Attributable to equity shareholders of the Company 526 Non-controlling 53 Further details of the nature and effect of the changes on previous accounting policies are set out below: (a) Timing of revenue recognition Previously, revenue arising from construction contracts and provision of services was recognized over time, whereas revenue from sale of goods was generally recognized at a point in time when the risks and rewards of ownership of the goods had passed to the customers. Under IFRS 15, revenue is recognized when the customer obtains control of the promised good or service in the contract. This may be at a single point in time or over time. IFRS 15 identifies the following three situations in which control of the promised good or service is regarded as being transferred over time: A. When the customer simultaneously receives and consumes the benefits provided by the entity’s performance, as the entity performs; B. When the entity’s performance creates or enhances an asset (for example work in progress) that the customer controls as the asset is created or enhanced; C. When the entity’s performance does not create an asset with an alternative use to the entity and the entity has an enforceable right to payment for performance completed to date. If the contract terms and the entity’s activities do not fall into any of these 3 situations, then under IFRS 15 the entity recognizes revenue for the sale of that good or service at a single point in time, being when control has passed. Transfer of risks and rewards of ownership is only one of the indicators that is considered in determining when the transfer of control occurs. The adoption of IFRS 15 does not have a significant impact on when the Group recognizes revenue, except for revenue arising from ticket breakage. Ticket breakage relates to a portion of contractual rights that the Group does not expect to be exercised. Previously, revenue arising from ticket breakage was recognized when the tickets expired. Whereas under IFRS 15, the Group recognizes, in proportion to the pattern of rights exercised by the customer, the breakage amount to which the Group expects to be entitled as revenue. If the Group does not expect to be entitled to a breakage amount, the Group recognizes the expected breakage amount as revenue when the likelihood of the customer exercising its remaining rights becomes remote. As a result of this change in accounting policy, the Group has made adjustments to opening balances as at January 1, 2018 which increased retained earnings and non-controlling (b) Measurement of revenue under frequent flyer award programs Previously, the amount received in relation to mileage earning flights is allocated, based on fair value, between the flight and mileage awarded under the Group’s frequent flyer award programs. The value attributed to the awarded mileage is deferred as a liability, and the remainder value is recognized as revenue in current period. Under IFRS 15, the Group allocates the transaction price to flight and mileage awarded on a relative stand-alone selling price basis. Therefore, the amount allocated to mileage awarded changed as compared to the fair value of mileage awarded measured under IAS 18, and in the meantime affecting the amount recognized as current period revenue and contract liabilities. As a result of this change in accounting policy, the Group has made adjustments to opening balances as at January 1, 2018 which increased retained earnings and non-controlling (c) Presentation (1) Ticket Breakage Revenue Previously, revenue arising from ticket breakage was presented separately as “Expired sales in advance of carriage” in “Other operating revenue”. As a result of the adoption of IFRS 15, ticket breakage revenue of RMB698 million for 2018 is included in the line item “Traffic revenue”. (2) Change Fees Previously, change fees was included in “Other operating revenue”. As a result of the adoption of IFRS 15, change fees of RMB655 million in 2018 which is not considered distinct from the transportation component is classified as “Traffic revenue”. (3) Contract Liabilities Previously, the amount received in relation to mileage awarded is deferred as a liability, within “Deferred revenue”. Under IFRS 15, a contract liability is recognized when a customer pays consideration, or is contractually required to pay consideration and the amount is already due, before the Group recognizes the related revenue. As a result of the adoption of IFRS15, the amount allocated to mileage awarded under the Group’s frequent flyer award programs is presented as “Contract liabilities” as at December 31, 2018 and the non-current non-current (d) Disclosure of the estimated impact on the amounts reported in respect of the year ended December 31, 2018 as a result of the adoption of IFRS 15 on January 1, 2018 The following tables summarize the estimated impact of adoption of IFRS 15 on the Group’s consolidated financial statements for the year ended December 31, 2018, by comparing the amounts reported under IFRS 15 in these consolidated financial statements with estimates of the hypothetical amounts that would have been recognized under IAS 18 and IAS 11 if those superseded standards had continued to apply to 2018 instead of IFRS 15. These tables show only those line items impacted by the adoption of IFRS 15: Amounts reported in accordance IFRS 15 Hypothetical amounts under and 11 Difference: Estimated impact of adoption of IFRS 15 on 2018 (A) (B) (A)-(B) RMB million RMB million RMB million Line items in the consolidated income statement for year ended December 31, 2018 impacted by the adoption of IFRS 15: Traffic revenue 138,064 136,641 1,423 Other operating revenue 5,559 6,855 (1,296 ) Total operating revenue 143,623 143,496 127 Profit before income tax 4,364 4,237 127 Income tax (1,000 ) (968 ) (32 ) Profit for the year 3,364 3,269 95 Profit attributable to: Equity shareholders of the Company 2,895 2,805 90 Non-controlling 469 464 5 Earnings per share Basic and diluted RMB0.27 RMB0.26 RMB0.01 Line items in the consolidated statement of comprehensive income for year ended December 31, 2018 impacted by the adoption of IFRS 15: Total comprehensive income for the year 3,619 3,524 95 Total comprehensive income attributable to: Equity shareholders of the Company 3,048 2,958 90 Non-controlling 571 566 5 Line items in the consolidated statement of financial position as at December 31, 2018 impacted by the adoption of IFRS 15: Deferred tax assets 1,566 1,570 (4 ) Non-current 222,877 222,881 (4 ) Contract liabilities (1,693 ) — (1,693 ) Sales in advance of carriage (8,594 ) (9,357 ) 763 Deferred revenue — (1,808 ) 1,808 Current income tax (369 ) (130 ) (239 ) Total current liabilities (83,687 ) (84,326 ) 639 Total assets less current liabilities 163,262 162,627 635 Deferred revenue — (2,057 ) 2,057 Other non-current (2,036 ) (18 ) (2,018 ) Total non-current (84,793 ) (84,832 ) 39 Reserves (52,990 ) (52,374 ) (616 ) Total equity attributable to equity shareholders of the Company (65,257 ) (64,641 ) (616 ) Non-controlling (13,212 ) (13,154 ) (58 ) Total equity (78,469 ) (77,795 ) (674 ) Line items in the reconciliation of profit before income tax to cash generated from operating activities for year ended December 31, 2018 (Note 34(b)) impacted by the adoption of IFRS 15: Profit before income tax 4,364 4,237 127 Increase in contract liabilities 232 — 232 Increase in sales in advance of carriage 1,441 1,504 (63 ) Increase in deferred revenue — 514 (514 ) Increase in other non-current 218 — 218 The significant differences arise as a result of the changes in accounting policies described above. (iii) IFRIC 22, Foreign currency transactions and advance consideration This interpretation provides guidance on determining “the date of the transaction” for the purpose of determining the exchange rate to use on initial recognition of the related asset, expense or income (or part of it) arising from a transaction in which an entity receives or pays advance consideration in a foreign currency. The Interpretation clarifies that “the date of the transaction” is the date on initial recognition of the non-monetary (c) Subsidiaries and non-controlling Subsidiaries are all entities over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. When assessing whether the Group has power, only substantive rights (held by the Group and other parties) are considered. An investment in a subsidiary is consolidated into the consolidated financial statements from the date that control commences until the date that control ceases. Intra-group transactions, balances and cash flows and any unrealized profits arising from intra-group transactions are eliminated in full in preparing the consolidated financial statements. Unrealized losses resulting from intra-group transactions are eliminated in the same way as unrealized gains but only to the extent that there is no evidence of impairment. Amounts reported by subsidiaries have been adjusted to conform with the Group’s accounting policies. Non-controlling non-controlling non-controlling Non-controlling Non-controlling non-controlling non-controlling Changes in the Group’s interests in a subsidiary that do not result in a loss of control are accounted for as equity transactions, whereby adjustments are made to the amounts of controlling and non-controlling When the Group loses control of a subsidiary, it is accounted for as a disposal of the entire interest in that subsidiary, with a resulting gain or loss being recognized in consolidated income statement. Any interest retained in that former subsidiary at the date when control is lost is recognized at fair value and this amount is regarded as the fair value on initial recognition of a financial asset (Note 2(f)) or, when appropriate, the cost on initial recognition of an investment in an associate or joint venture (Note 2(d)). In the Company’s statement of financial position, an investment in a subsidiary is stated at cost less impairment losses (Note 2(l)(iii)). The Group applies the acquisition method to account for business combinations. The consideration transferred in the acquisition is generally measured at fair value, as are the identifiable net assets acquired. Transaction costs are expensed as incurred. The consideration transferred does not include amounts related to the settlement of pre-existing Any contingent consideration is measured at fair value at the date of acquisition. If an obligation to pay contingent consideration that meets the definition of a financial instrument is classified as equity, then it is not remeasured and settlement is accou |
Accounting estimates and judgem
Accounting estimates and judgements | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Accounting estimates and judgements | 3 Accounting estimates and judgements The Group’s financial position and results of operations are sensitive to accounting methods, assumptions and estimates that underlie the preparation of the consolidated financial statements. The Group bases the assumptions and estimates on historical experience and on various other assumptions that the Group believes to be reasonable and which form the basis for making judgements about matters that are not readily apparent from other sources. On an ongoing basis, management evaluates its estimates. Actual results may differ from those estimates as facts, circumstances and conditions change. The selection of critical accounting policies, the judgements and other uncertainties affecting application of those policies and the sensitivity of reported results to changes in condition and assumptions are factors to be considered when reviewing the financial statements. In addition to the assumptions and estimates regarding fair value measurements of financial instruments disclosed in Note 4(g), the Group believes the following also involve key accounting estimates and judgements used in the preparation of the financial statements. (a) Impairment of long-lived assets (other than goodwill) If circumstances indicate that the carrying amount of a long-lived asset may not be recoverable, the asset may be considered “impaired”, and an impairment loss may be recognized in accordance with IAS 36, Impairment of Assets (b) Depreciation and amortization Property, plant and equipment and right-of-use assets are depreciated or amortized on a straight-line basis over the estimated useful lives, after taking into account the estimated residual value. The Group reviews the estimated useful lives of assets annually in order to determine the amount of depreciation and amortization expense to be recorded during any financial year. The useful lives are based on the Group’s historical experience with similar assets and take into account anticipated technological changes. The depreciation and amortization expense for future periods is adjusted if there are significant changes from previous estimates. (c) Discount rate and return overhaul costs used to measure right-of-use As disclosed in Note 2(k) to the consolidated financial statements, the Group’s right-of-use right-of-use In the comparative periods prior to January 1, 2019, provision for the cost of major overhaul to fulfil the lease return conditions for operating leased aircraft were accrued and charged to consolidated income statement. (d) Frequent flyer revenue According to the frequent flyer award programs, the allocation of stand-alone selling price of the mileage awarded involves the estimation of the expected redemption rate. The expected redemption rate is estimated based on historical experience, of mileage redemption, taking into consideration future mileage redemption patterns, which are associated with changes in the terms to mileage programs and customer behavior. Different estimates could significantly affect the estimated contract liabilities and the results of operations. In the comparative period prior to January 1, 2018, the amount of revenue attributable to the mileage earned by the members of the Group’s frequent flyer award programs was estimated based on the fair value of the mileage awarded and the expected redemption rate. The fair value of mileage awarded was estimated by reference to external sales. The method to estimate the expected redemption rate remains unchanged. (e) Income tax There are certain transactions and calculations for which the ultimate tax determination is uncertain during the ordinary course of business. The Group needs to make judgements and estimates in determining the current income tax. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the current and deferred income tax assets and liabilities in the year in which such determination is made. (f) Ticket breakage revenue The Group recognizes, in proportion to the pattern of rights exercised by the customer, the breakage amount to which the Group expects to be entitled as ticket breakage revenue. Such portion is estimated based on the Group’s historical experiences, and the estimated revenue is recognized only to the extent that it is highly probable that a significant reversal in cumulative revenue recognized will not occur when the uncertainty is resolved. Different estimates could significantly affect the ticket breakage revenue recognized in the current financial year. In the comparative period prior to January 1, 2018, ticket breakage revenue was recognized when the tickets expired, and such revenue recognition did not involve significant accounting estimates. |
Financial risk management and f
Financial risk management and fair values | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Financial risk management and fair values | 4 Financial risk management and fair values The Group is exposed to liquidity, interest rate, currency, credit risks and commodity jet fuel price risk in the normal course of business. The Group’s overall risk management program focuses on the unpredictability of financial market and seeks to minimize the adverse effects on the Group’s financial performance. The Group’s exposure to these risks and the financial risk management policies and practices used by the Group to manage these risks are described below. (a) Liquidity risk As at December 31, 2019, the Group’s current liabilities exceeded its current assets by RMB78,752 million. For the year ended December 31, 2019, the Group recorded a net cash inflow from operating activities of RMB31,175 million, a net cash outflow from investing activities of RMB14,427 million and a net cash outflow from financing activities of RMB21,833 million, which in total resulted in a net decrease in cash and cash equivalents of RMB5,085 million. The Group is dependent on its ability to maintain adequate cash inflow from operations, its ability to maintain existing external financing, and its ability to obtain new external financing to meet its debt obligations as they fall due and to meet its committed future capital expenditures. The Group’s policy is to regularly monitor its liquidity requirements and its compliance with lending covenants, to ensure that it maintains sufficient reserves of cash and adequate committed lines of funding from major financial institutions to meet its liquidity requirements in the short and longer term. As at December 31, 2019, the Group had banking facilities with several banks and financial institutions for providing bank financing up to approximately RMB308,343 million, of which approximately RMB251,165 million was unutilized. The Directors of the Company believe that sufficient financing will be available to the Group when and where needed. The following tables show the remaining contractual maturities at the end of the reporting period of the Group’s non-derivative 2019 Contractual undiscounted cash outflow Within 1 year or on demand More than 1 year but 2 years More than 2 years but 5 years More than 5 years Total RMB million Carrying amount at December 31 RMB million Borrowings 38,304 4,251 8,720 2,007 53,282 51,180 Lease liabilities 25,404 23,860 63,003 44,814 157,081 134,074 Trade and other payables and accrued charges 21,300 — — — 21,300 21,300 85,008 28,111 71,723 46,821 231,663 206,554 2018 Contractual undiscounted cash outflow Carrying amount at December 31 Within 1 year or on demand More than 1 year but 2 years More than 2 years but 5 years More than 5 years Total (Note) Borrowings 40,121 8,272 6,335 2,188 56,916 54,417 Obligations under finance leases 12,062 11,738 36,765 22,200 82,765 72,221 Trade and other payables and accrued charges 21,292 — — — 21,292 21,292 73,475 20,010 43,100 24,388 160,973 147,930 Note: The Group has initially applied IFRS 16 at January 1, 2019 using the modified retrospective approach. Under this approach, comparative information is not restated. See Note 2(b). (b) Interest rate risk Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Group’s borrowings and lease liabilities issued at floating and fixed interest rates expose the Group to cash flow interest rate risk and fair value interest rate risk, respectively. The Group determines the ratio of fixed-rate and floating-rate instruments according to the market environment, and maintains an appropriate combination of fixed-rate and floating-rate instruments by reviewing and monitoring it on a regular basis. Interest rate swaps, denominated in United States Dollars (“USD”), have been entered into to mitigate its cash flow interest rate risk. Under the interest rate swaps, the Group agrees with other third parties to exchange, at specified intervals (primarily quarterly), the difference between fixed contract rates and floating-rate interest amounts calculated by reference to the agreed notional amounts (Note 27). Cross currency swaps have been entered into to mitigate its interest rate risk and foreign currency risk. Under the cross currency swaps, the Group agrees with other third parties to exchange the floating interest and principal payments in USD for fixed interest and principal payments in RMB for certain USD bank loans (Note 27). As at December 31, 2019, it is estimated that a general increase/decrease of 100 basis points in interest rates, with all other variables held constant, would have decreased/increased the Group’s profit after tax and retained profits by approximately RMB559 million (2018: RMB539 million; 2017: RMB530 million). The sensitivity analysis above indicates the instantaneous change in the Group’s profit after tax and retained profits and other components of consolidated equity that would arise assuming that the change in interest rates had occurred at the end of the reporting period and had been applied to re-measure non-derivative (c) Foreign currency risk Renminbi is not freely convertible into foreign currencies. All foreign exchange transactions involving Renminbi must take place either through the PBOC or other institutions authorized to buy and sell foreign exchange or at a swap center. The Group has significant exposure to foreign currency risk as majority of the Group’s lease liabilities (Note 37) and certain of the bank borrowings (Note 36) are denominated in foreign currencies, principally USD, Euro and Japanese Yen. Depreciation or appreciation of Renminbi against foreign currencies affects the Group’s results significantly because the Group’s foreign currency liabilities generally exceed its foreign currency assets. The following table indicates the instantaneous change in the Group’s profit after tax and retained profits that would arise if foreign exchange rates to which the Group has significant exposure at the end of the reporting period had changed at that date, assuming all other risk variables remained constant. The range of such sensitivity was considered to be reasonably possible at the end of the reporting date. 2019 Appreciation/(depreciation) of Renminbi against foreign currency Increase/(decrease) on profit after tax and retained profits RMB million USD 1 % 434 (1 %) (434 ) Euro 1 % 26 (1 %) (26 ) Japanese Yen 10 % 94 (10 %) (94 ) 2018 Appreciation/(depreciation) of Renminbi against foreign currency Increase/(decrease) on profit after tax and retained profits RMB million USD 1 % 195 (1 %) (195 ) Euro 1 % 28 (1 %) (28 ) Japanese Yen 10 % 103 (10 %) (103 ) 2017 Appreciation/(depreciation) of Renminbi against foreign currency Increase/(decrease) on profit after tax and retained profits RMB million USD 1 % 278 (1 %) (278 ) Euro 1 % 31 (1 %) (31 ) Japanese Yen 10 % 116 (10 %) (116 ) Results of the analysis as presented in the above table represent an aggregation of the instantaneous effects on each of the Group entities’ profit after tax and retained profits measured in the respective functional currencies, translated into Renminbi at the exchange rate ruling at the end of the reporting period for presentation purposes. The sensitivity analysis assumes that the change in foreign exchange rates had been applied to re-measure (d) Credit risk Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in a financial loss to the Group. The Group’s credit risk is primarily attributable to cash and cash equivalents, trade receivables, other receivables and derivative financial instruments. Cash and cash equivalents Substantially all of the Group’s cash and cash equivalents are deposited with major reputable PRC financial institutions, which management believes are of high credit quality. As the counterparties have favorable credit ratings, the Group does not expect there to be a risk of default. Trade receivables A significant portion of the Group’s air tickets are sold by agents participating in the Billing and Settlement Plan (“BSP”), a clearing scheme between airlines and sales agents organized by International Air Transportation Association. The use of the BSP reduces credit risk to the Group. As at December 31, 2019, the balance due from BSP agents amounted to RMB984 million (December 31, 2018: RMB955 million). The credit risk exposure to BSP and the remaining trade receivables balance are monitored by the Group on an ongoing basis and the relevant credit risk is within management’s expectations. The Group measures loss allowances for trade receivables at an amount equal to lifetime ECLs, which is calculated using a provision matrix. As the Group’s historical credit loss experience indicates significantly different loss patterns for different customer segments, the loss allowance based on past due status is further distinguished between air ticket receivables, mileage credits sales receivables, general aviation service receivables, receivables on cooperation flights and other trade receivables. The following table provides information about the Group’s exposure to credit risk and ECLs for air ticket receivables as at December 31, 2019 and 2018: December 31, 2019 Expected loss rate % Gross carrying amount RMB million Loss allowance RMB million Within 3 months 0.01 % 1,877 — More than 3 months but less than 1 year 50.00 % 11 6 More than 1 year but less than 2 years 100.00 % 7 7 More than 2 years but less than 3 years 100.00 % — — More than 3 years 100.00 % 16 16 1,911 29 December 31, 2018 Expected Gross Loss Within 3 months 0.01 % 1,940 — More than 3 months but less than 1 year 50.00 % 8 4 More than 1 year but less than 2 years 100.00 % 2 2 More than 2 years but less than 3 years 100.00 % 6 6 More than 3 years 100.00 % 16 16 1,972 28 Expected loss rates are estimated with reference to actual loss experience over the past years. These rates are adjusted to reflect differences between economic conditions during the period over which the historical data has been collected, current conditions and the Group’s view of economic conditions over the expected lives of the receivables. The credit risk of mileage credits sales receivables, general aviation service receivables and receivables on cooperation flights are considered to be low. The Group does not make credit loss allowance for these receivables. The Group measures credit loss allowance for other trade receivables amounted to RMB7 million (December 31, 2018: RMB8 million) based on ECLs. Movement in the loss allowance account in respect of trade receivables during the year is as follows: 2019 2018 Balance at January 1 36 37 Amounts written off during the year (11 ) (2 ) Impairment losses written back (1 ) (4 ) Impairment losses recognized during the year 12 5 Balance at December 31 36 36 Derivative financial instruments The Group entered into derivative financial instruments arrangements with counterparties such as banks. Such arrangements are settled in net. As the counterparties have favourable credit ratings, the Group does not expect there to be a risk of default. (e) Jet fuel price risk The Group’s results of operations may be significantly affected by fluctuations in fuel prices since the jet fuel expenses are a significant cost for the Group. A reasonable possible increase/decrease of 10% (2018 and 2017:10%) in jet fuel price, with volume of fuel consumed and all other variables held constant, would have increased/decreased the fuel costs by approximately RMB4,281 million (2018: RMB4,292 million; 2017: RMB3,190 million). The sensitivity analysis indicates the instantaneous change in the Group’s jet fuel costs that would arise assuming that the change in fuel price had occurred at the beginning of the financial year. (f) Capital management The Group’s primary objectives in managing capital are to safeguard the Group’s ability to continue as a going concern, and to generate sufficient profit to maintain growth and provide returns to its shareholders, by securing access to finance at a reasonable cost. The Group manages the amount of capital in proportion to risk and manages its debt portfolio in conjunction with projected financing requirements. The Group monitors capital on the basis of the debt ratio, which is calculated as total liabilities divided by total assets. During 2019, the Group’s strategy, which was unchanged from 2018 and 2017, was to maintain a debt ratio at a range of levels to support the operations and development of the Group’s business in the long run. In order to maintain or adjust the debt ratio, the Group may adjust the amount of dividends paid to shareholders, issue new shares, return capital to shareholders, raise new debt financing or sell assets to reduce debt. The Group has initially applied IFRS 16 using the modified retrospective approach. Under this approach, the Group recognizes right-of-use Except for the compliance of certain financial covenants for maintaining the Group’s banking facilities and borrowings, the Group is not subject to any externally imposed capital requirements. The Group complied with the financial covenants attached to borrowings as of and for the years ended December 31, 2019 and 2018. (g) Fair value (i) Financial instruments carried at fair value Fair value hierarchy The following table presents the carrying value of financial instruments measured at the end of the reporting period on a recurring basis, categorized into the three-level fair value hierarchy as defined in IFRS 13, Fair value measurement • Level 1 valuations: Fair value measured using only Level 1 inputs i.e. unadjusted quoted prices in active markets for identical assets or liabilities at the measurement date • Level 2 valuations: Fair value measured using Level 2 inputs i.e. observable inputs which fail to meet Level 1, and not using significant unobservable inputs. Unobservable inputs are inputs for which market data are not available • Level 3 valuations: Fair value measured using significant unobservable inputs Fair value measurements as at December 31, 2019 categorized into Note Fair value at RMB million Level 1 RMB million Level 2 RMB million Level 3 RMB million Recurring fair value measurement Financial assets: Other equity instrument investments: -Non-listed 26 188 — — 188 -Non-tradable 26 861 — — 861 Other non-current -Listed shares 26 74 74 — — -Non-listed 26 32 — — 32 Derivative financial assets: -Interest rate swaps 27 3 — 3 — -Cross currency swaps 27 187 — 187 — -Forward foreign exchange contracts 27 31 — 31 — Fair value measurements as at December 31, 2018 categorized into Note Fair value at RMB million Level 1 RMB million Level 2 RMB million Level 3 RMB million Recurring fair value measurement Financial assets: Other equity instrument investments: -Non-listed 26 234 — — 234 -Non-tradable 26 846 — — 846 Other non-current -Listed shares 26 71 71 — — -Non-listed 26 32 — — 32 Other financial assets 26 440 — 440 — Derivative financial assets: -Interest rate swaps 27 75 — 75 — Financial liabilities: Derivative financial liabilities: -Cross currency swaps 27 (44 ) — (44 ) — During the years ended December 31, 2019 and 2018, there were no transfers among level 1, level 2 and level 3. The Group’s policy is to recognize transfers between levels of fair value hierarchy as at the end of the reporting period in which they occur. Valuation techniques and inputs used in Level 2 fair value measurements Fair value of interest rate swaps in derivative financial assets is measured by discounting the expected receivable or payable amounts under the assumption that these swaps had been terminated at the end of the reporting period. The discount rates used are the US Treasury bond yield curve as at the end of the reporting period. Fair value of cross currency swaps is the estimated amount that the Group would receive or pay to terminate the swaps at the end of the reporting period, taking into account current exchange rates and interest rates and the current creditworthiness of the swap counterparties. Fair value of forward foreign exchange contracts is determined using quoted forward exchange rates at the reporting date and present value calculations based on high credit quality yield curves in the respective currencies. Fair value of other financial assets are the estimated amount that the Group would receive at the end of the reporting period, taking into account the current creditworthiness of the other financial assets counterparties. Information about Level 3 fair value measurements Valuation technique Significant unobservable inputs Range Other equity instruments investments -Non-listed shares Market comparable companies Discount for lack of marketability 22 % -Non-tradable shares Discounted cash flow Expected profit growth rate during the projection period 10-12 % Perpetual growth rate 3 % Perpetual dividend payout rate 80 % Expected dividend payout rate during the projection period 34 % Discount rate 9.90 % Other non-current -Non-listed shares (2) Discounted cash flow Expected profit growth rate during the projection period 11%-15 % Perpetual growth rate 1%-4 % Perpetual dividend payout rate 80 % Expected dividend payout rate during the projection period 27%-43 % Discount rate 9.90%-11.08 % (1) The fair value of non-listed (2) The fair value of these non-tradable non-listed (3) Any gain or loss arising from the remeasurement of the Group’s unlisted equity securities held for strategic purposes are recognized in the fair value reserve (non-recycling) (4) From January 1, 2018, any gain or loss arising from the remeasurement of the Group’s unlisted equity securities held for strategic purposes are recognized in the fair value reserve (non-recycling) (ii) Financial instruments not carried at fair value All other financial instruments, including cash and cash equivalents, amounts due from/to related companies, trade and other receivables, trade and other payables, borrowings, and lease liabilities are carried at amounts not materially different from their fair values as at December 31, 2019 and 2018. |
Operating revenue
Operating revenue | 12 Months Ended |
Dec. 31, 2019 | |
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Operating revenue | 5 Operating revenue The Group is principally engaged in the operation of civil aviation, including the provision of passenger, cargo, mail delivery, and other extended transportation services. (i) Disaggregation of revenue Disaggregation of revenue from contracts with customers by major services lines is as follow: 2019 2018 2017 Note RMB million RMB million RMB million (Note) Revenue from contracts with customers within the scope of IFRS 15: Disaggregated by service lines -Traffic revenue – Passenger 138,502 128,038 112,791 – Cargo and mail 9,615 10,026 9,082 -Commission income 2,952 2,619 2,781 -Hotel and tour operation income 712 676 547 -General aviation income 564 476 467 -Ground services income 409 429 429 -Expired sales in advance of carriage — — 396 -Air catering income 353 391 335 -Cargo handling income 359 254 241 -Others 654 536 553 154,120 143,445 127,622 Revenue from other sources: -Rental income 19(f) 202 178 184 154,322 143,623 127,806 Note: The Group has initially applied IFRS 15 at January 1, 2018, using the cumulative effect method. Under this method, the comparative information is not restated (see Note 2(b)). Disaggregation of revenue from contracts with customers by the timing of revenue recognition and by geographic markets is disclosed in Notes 6(a) and 6(b) respectively. (ii) Revenue expected to be recognized in the future arising from contracts with customers in existence at the reporting date. As at December 31, 2019, the aggregated amount of the transaction price allocated to the remaining performance obligation, which is the unredeemed credits under the frequent flyer award programs, amounted to RMB3,331 million (December 31, 2018: RMB3,711 million) (Note 40). This amount represents revenue expected to be recognized in the future when the customers take possession of the goods or services redeemed. |
Segment reporting
Segment reporting | 12 Months Ended |
Dec. 31, 2019 | |
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Segment reporting | 6 Segment reporting (a) Business segments The Group has two reportable operating segments “airline transportation operations” and “other segments”, according to internal organization structure, managerial needs and internal reporting system. “Airline transportation operations” comprises the Group’s passenger and cargo and mail operations. “Other segments” includes hotel and tour operation, air catering services, ground services, cargo handling and other miscellaneous services. For the purposes of assessing segment performance and allocating resources between segments, the Group’s chief operating decision maker (“CODM”) monitors the results, assets and liabilities attributable to each reportable segment based on financial results prepared under the People’s Republic of China Accounting Standards for Business Enterprises (“PRC GAAP”). As such, the amount of each material reconciling item from the Group’s reportable segment revenue, profit before taxation, assets and liabilities, which arises from different accounting policies, are set out in Note 6(c). Inter-segment sales and transfers are transacted with reference to the selling prices used for sales made to third parties at the then prevailing market prices. Information regarding the Group’s reportable segments as provided to the Group’s CODM for the purposes of resource allocation and assessment of segment performance is set out below. The segment results of the Group for the year ended December 31, 2019 are as follows: Airline Other Elimination Unallocated* Total RMB million RMB million RMB million RMB million RMB million Disaggregated by timing of revenue recognition Point in time 2,996 2,747 (2,401 ) — 3,342 Over time 149,799 2,785 (1,604 ) — 150,980 Revenue from external customers 152,591 1,731 — — 154,322 Inter-segment sales 204 3,801 (4,005 ) — — Reportable segment revenue 152,795 5,532 (4,005 ) — 154,322 Reportable segment profit before taxation 3,020 558 2 490 4,070 Reportable segment profit after taxation 2,224 446 2 423 3,095 Other segment information Income tax 796 112 — 67 975 Interest income 64 41 (31 ) — 74 Interest expense 5,833 43 (31 ) — 5,845 Depreciation and amortization 24,256 354 — — 24,610 Impairment loss 38 — — — 38 Credit loss 11 2 — — 13 Share of associates’ results — — — (178 ) (178 ) Share of joint ventures’ results — — — 365 365 Remeasurement of the originally held equity interests in a joint venture — — — 13 13 Change in fair value of financial assets / liabilities — — — 265 265 Non-current # 44,851 739 — — 45,590 The segment results of the Group for the year ended December 31, 2018 are as follows: Airline Other Elimination Unallocated* Total RMB million RMB million RMB million RMB million RMB million Disaggregated by timing of revenue recognition Point in time 2,532 1,975 (1,596 ) — 2,911 Over time 139,671 3,822 (2,781 ) — 140,712 Revenue from external customers 141,968 1,655 — — 143,623 Inter-segment sales 235 4,142 (4,377 ) — — Reportable segment revenue 142,203 5,797 (4,377 ) — 143,623 Reportable segment profit before taxation 3,448 604 (60 ) 495 4,487 Reportable segment profit after taxation 2,567 457 (60 ) 492 3,456 Other segment information Income tax 881 147 — 3 1,031 Interest income 107 18 — — 125 Interest expense 3,054 148 — — 3,202 Depreciation and amortization 14,084 282 — — 14,366 Impairment loss 12 — — — 12 Credit loss 2 1 — — 3 Share of associates’ results — — — 263 263 Share of joint ventures’ results — — — 200 200 Fair value movement of financial instruments — — — 12 12 Non-current # 37,155 406 — — 37,561 The segment results of the Group for the year ended December 31, 2017 are as follows: Airline Other Elimination Unallocated* Total RMB million RMB million RMB million RMB million RMB million Revenue from external customers 126,077 1,412 — — 127,489 Inter-segment sales 159 2,823 (2,982 ) — — Reportable segment revenue 126,236 4,235 (2,982 ) — 127,489 Reportable segment profit before taxation 7,708 529 — 561 8,798 Reportable segment profit after taxation 5,875 381 — 577 6,833 Other segment information Income tax 1,833 148 — (16 ) 1,965 Interest income 74 15 — — 89 Interest expense 2,724 23 — — 2,747 Depreciation and amortization 13,112 201 — — 13,313 Impairment loss 440 2 — — 442 Share of associates’ results — — — 420 420 Share of joint ventures’ results — — — 99 99 Remeasurement of the originally held equity interests in a joint venture — — — 88 88 Fair value movement of derivative financial instruments — — — (64 ) (64 ) Non-current # 30,776 1,828 — — 32,604 The segment assets and liabilities of the Group as at December 31, 2019 and December 31, 2018 are as follows: Airline Other Elimination Unallocated* Total RMB million RMB million RMB million RMB million RMB million As at December 31, 2019 Reportable segment assets 295,439 7,048 (3,662 ) 7,821 306,646 Reportable segment liabilities 230,738 2,458 (3,604 ) — 229,592 As at December 31, 2018 Reportable segment assets 234,755 6,479 (1,829 ) 7,250 246,655 Reportable segment liabilities 167,806 2,391 (1,769 ) 44 168,472 * Unallocated assets primarily include interest in associates and joint ventures, derivative financial assets and equity securities. Unallocated results primarily include the share of results of associates and joint ventures, dividend income from equity securities, and the fair value movement of financial instruments recognized through profit or loss. # The additions of non-current non-current (b) Geographical information The Group’s business segments operate in three main geographical areas, even though they are managed on a worldwide basis. The Group’s revenue by geographical segment are analysed based on the following criteria: (1) Traffic revenue from services of both origin and destination within the PRC (excluding Hong Kong Special Administrative Region, Macau Special Administrative Region and Taiwan (“Hong Kong, Macau and Taiwan”)), is classified as domestic revenue. Traffic revenue with origin and destination among PRC, Hong Kong, Macau and Taiwan is classified as Hong Kong, Macau and Taiwan revenue; while that with origin from or destination to other overseas markets is classified as international revenue. (2) Revenue from commission income, hotel and tour operation, air catering services, ground services, cargo handling and other miscellaneous services are classified on the basis of where the services are performed. 2019 2018 2017 RMB million RMB million RMB million Domestic 110,112 103,287 92,986 International 41,651 37,773 32,117 Hong Kong, Macau and Taiwan 2,559 2,563 2,386 154,322 143,623 127,489 The major revenue earning asset of the Group is its aircraft fleet which is registered in the PRC and is deployed across its worldwide route network. Majority of the Group’s other assets are located in the PRC. CODM considers that there is no suitable basis for allocating such assets and related liabilities to geographical locations. Accordingly, geographical segment assets and liabilities are not disclosed. (c) Reconciliation of reportable segment revenue, profit before income tax, assets and liabilities to the consolidated figures as reported in the consolidated financial statements 2019 2018 2017 Note RMB RMB RMB Revenue Reportable segment revenue 6(a) 154,322 143,623 127,489 Reclassification of expired sales in advance of carriage (i) — — 396 Reclassification of sales tax — — (65 ) Adjustments arising from business combinations under common control (iv) — — (14 ) Consolidated revenue 154,322 143,623 127,806 2019 2018 2017 Note RMB RMB RMB Profit before income tax Reportable segment profit before taxation 6(a) 4,070 4,487 8,798 Capitalization of exchange difference of specific loans (ii) (16 ) (124 ) 47 Government grants (iii) 1 1 21 Adjustments arising from business combinations under common control (iv) — — 8 Consolidated profit before income tax 4,055 4,364 8,874 2019 2018 Note RMB million RMB million Assets Reportable segment assets 6(a) 306,646 246,655 Capitalization of exchange difference of specific loans (ii) 56 72 Government grants (iii) (6 ) (7 ) Adjustments arising from business combinations under common control (iv) 237 237 Others (5 ) (8 ) Consolidated total assets 306,928 246,949 2019 2018 RMB million RMB million Liabilities Reportable segment liabilities 6(a) 229,592 168,472 Others 7 8 Consolidated total liabilities 229,599 168,480 Notes: (i) Expired sales in advance of carriage are recorded under non-operating (ii) In accordance with the PRC GAAP, exchange difference arising on translation of specific loans and related interest denominated in a foreign currency is capitalized as part of the cost of qualifying assets. Under IFRSs, such exchange difference is recognized in income statement unless the exchange difference represents an adjustment to interest. (iii) In accordance with the PRC GAAP, assets related government grants (other than special funds) are deducted from the cost of the related assets. Special funds granted by the government and clearly defined in the approval documents as part of “capital reserve” are accounted for as increase in capital reserve. Under IFRSs, assets related government grants are deducted to the cost of the related assets. The difference is resulted from government grants received in previous years and are recognized in capital reserve under PRC GAAP. (iv) In accordance with the PRC GAAP, the Company accounts for the business combination under common control by applying the pooling-of-interest pooling-of-interest |
Flight operation expenses
Flight operation expenses | 12 Months Ended |
Dec. 31, 2019 | |
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Flight operation expenses | 7 Flight operation expenses 2019 2018 2017 RMB million RMB million (Note) RMB million (Note) Jet fuel costs 42,814 42,922 31,895 Flight personnel payroll and welfare 12,709 11,467 10,574 Air catering expenses 3,975 3,734 3,379 Civil Aviation Development Fund 2,332 2,940 2,720 Aircraft operating lease charges 1,412 8,726 8,022 Training expenses 1,142 894 1,184 Aircraft insurance 192 163 — Others 5,990 5,370 5,204 70,566 76,216 62,978 Note: The Group has initially applied IFRS 16 at January 1, 2019 using the modified retrospective approach. Under this approach, comparative information is not restated. See Note 2(b). |
Maintenance expenses
Maintenance expenses | 12 Months Ended |
Dec. 31, 2019 | |
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Maintenance expenses | 8 Maintenance expenses 2019 2018 2017 RMB million RMB million RMB million Aviation repair and maintenance charges 8,565 8,394 7,930 Staff payroll and welfare 2,976 2,736 2,620 Maintenance materials 1,516 1,574 1,327 13,057 12,704 11,877 |
Aircraft and transportation ser
Aircraft and transportation service expenses | 12 Months Ended |
Dec. 31, 2019 | |
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Aircraft and transportation service expenses | 9 Aircraft and transportation service expenses 2019 2018 2017 RMB million RMB million RMB million Landing and navigation fees 17,658 15,980 14,910 Ground service and other charges 8,933 8,399 8,025 26,591 24,379 22,935 |
Promotion and selling expenses
Promotion and selling expenses | 12 Months Ended |
Dec. 31, 2019 | |
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Promotion and selling expenses | 10 Promotion and selling expenses 2019 2018 2017 RMB million RMB million RMB million Ticket office expenses 3,299 3,173 3,160 Sales commissions (Note) 2,214 2,027 1,935 Computer reservation services 959 892 835 Advertising and promotion 314 217 196 Others 969 727 755 7,755 7,036 6,881 Note: The Group applies the practical expedient in IFRS 15 and therefore expenses the portion of sales commissions which are regarded as directly related incremental costs of obtaining transportation contracts, as the amortization period is less than one year. |
General and administrative expe
General and administrative expenses | 12 Months Ended |
Dec. 31, 2019 | |
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General and administrative expenses | 11 General and administrative expenses 2019 2018 2017 RMB million RMB million RMB million General corporate expenses 3,705 3,477 3,218 Auditors’ remuneration 20 18 14 - Audit services 18 15 14 - Non-audit 2 3 — Other taxes and levies 348 275 159 4,073 3,770 3,391 |
Depreciation and amortization
Depreciation and amortization | 12 Months Ended |
Dec. 31, 2019 | |
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Depreciation and amortization | 12 Depreciation and amortization 2019 2018 2017 RMB million RMB million RMB million (Note) (Note) Depreciation of property, plant and equipment – Owned assets 9,029 8,193 8,080 – Finance leases — 5,776 4,883 Depreciation of right-of-use 15,263 — — Other amortization 328 339 199 24,620 14,308 13,162 Note: The Group has initially applied IFRS 16 at January 1, 2019 using the modified retrospective approach. Under this approach, comparative information is not restated. See Note 2(b). |
Staff costs
Staff costs | 12 Months Ended |
Dec. 31, 2019 | |
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Staff costs | 13 Staff costs 2019 2018 2017 RMB million RMB million RMB million Salaries, wages and welfare 24,647 22,445 21,400 Defined contribution retirement scheme 2,794 2,387 2,114 Other retirement welfare subsidy 206 197 194 Early retirement benefits (Note 47) — 1 1 27,647 25,030 23,709 Staff costs relating to flight operation and maintenance are also included in the respective total amounts disclosed separately in Note 7 and Note 8 above. |
Other net income
Other net income | 12 Months Ended |
Dec. 31, 2019 | |
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Other net income | 14 Other net income 2019 2018 2017 RMB million RMB million RMB million Government grants (Note) 4,129 4,348 3,075 Gains on disposal of property, plant and equipment and construction in progress – Aircraft and spare engines and construction in progress 34 584 960 – Other property, plant and equipment 106 18 29 Penalty income 273 216 126 Others 582 272 258 5,124 5,438 4,448 Note: Government grants mainly represent (i) subsidies based on certain amount of tax paid granted by governments to the Group; (ii) subsidies granted by various local governments to encourage the Group to operate certain routes to cities where these governments are located. There are no unfulfilled conditions and other contingencies related to subsidies that have been recognized during the years ended December 31, 2019, 2018 and 2017. |
Interest expense
Interest expense | 12 Months Ended |
Dec. 31, 2019 | |
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Interest expense | 15 Interest expense 2019 2018 2017 RMB million RMB million RMB million (Note(i)) (Note(i)) Interest on borrowings 1,840 1,891 1,628 Interest relating to lease liabilities (Note 21) 5,302 — — Interest relating to obligations under finance leases — 2,409 2,009 Interest relating to provision for early retirement benefits — — 1 Total interest expense on financial liabilities not at fair value through profit or loss 7,142 4,300 3,638 Less: interest expense capitalized (Note(ii)) (1,279 ) (1,085 ) (908 ) 5,863 3,215 2,730 Interest rate swaps: cash flow hedge, reclassified from equity (Note 17&21) (18 ) (13 ) 17 5,845 3,202 2,747 Notes: (i) The Group has initially applied IFRS 16 at January 1, 2019 using the modified retrospective approach. Under this approach, comparative information is not restated. See Note 2(b). (ii) The weighted average interest rate used for interest capitalization was 3.51% per annum in 2019 (2018: 3.54%; 2017: 3.32%). |
Income tax
Income tax | 12 Months Ended |
Dec. 31, 2019 | |
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Income tax | 16 Income tax (a) Income tax expense in the consolidated income statement 2019 2018 2017 RMB million RMB million RMB million PRC income tax –Provision for the year 1,611 962 2,280 –Under/(over)-provision in prior year 10 (27 ) (2 ) 1,621 935 2,278 Deferred tax (Note 29) Origination and reversal of temporary differences (650 ) 65 (302 ) Income tax expense 971 1,000 1,976 In respect of a majority of the Group’s airlines operation outside mainland China, the Group has either obtained exemptions from overseas taxation pursuant to the bilateral aviation agreements between the overseas governments and the PRC government, or has sustained tax losses in those overseas jurisdictions. Accordingly, no provision for overseas income tax has been made for overseas airlines operation in the current and prior years. For the year of 2019, the Company and its branches are liable to income tax rates ranging from 15% to 25% (2018: 15% to 25%; 2017: 15% to 25%), and the subsidiaries of the Company are liable to income tax rates ranging from 15% to 30% (2018: 15% to 30%; 2017: 15% to 25%). China Southern West Australian Flying College Pty Ltd. (“Flying College”), one of the subsidiaries of the Company, is located in Australia and is subject to income tax at 30%. Certain subsidiaries of the Company are located in Hong Kong and are subject to income tax at 16.5%. (b) Reconciliation between actual tax expense and calculated tax based on accounting profit at applicable tax rates 2019 2018 2017 RMB million RMB million RMB million Profit before income tax 4,055 4,364 8,874 Notional tax on profit before taxation, calculated at the rates applicable to profits in the tax jurisdictions concerned (Note 16(a)) 964 1,089 2,179 Adjustments for tax effect of: Non-deductible 18 23 9 Share of results of associates and joint ventures and other non-taxable (50 ) (121 ) (137 ) Taxable temporary differences for which no deferred tax liabilities were recognized — — (27 ) Unused tax losses and deductible temporary differences for which no deferred tax assets were recognized 62 73 26 Utilization of unused tax losses and deductible temporary differences for which no deferred tax assets were recognized in prior years (3 ) (17 ) (72 ) Under/(over)-provision in prior year 10 (27 ) (2 ) Super deduction of research and development expenses (30 ) (20 ) — Tax expense 971 1,000 1,976 |
Other comprehensive income
Other comprehensive income | 12 Months Ended |
Dec. 31, 2019 | |
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Other comprehensive income | 17 Other comprehensive income 2019 2018 2017 RMB million RMB million RMB million (Note) Cash flow hedges: Effective portion of changes in fair value of hedging instruments recognized during the year (54 ) 42 8 Reclassification adjustments for amounts transferred to profit or loss: - interest expense (Note 15) (18 ) (13 ) 17 Net deferred tax credited / (debited) to other comprehensive income 17 (7 ) (6 ) (55 ) 22 19 Equity investments measured at FVOCI: Changes in fair value recognized during the year (31 ) 319 — Net deferred tax credited / (debited) to other comprehensive income 7 (80 ) — (24 ) 239 — Share of other comprehensive income of an associate Will not be reclassified to profit or loss 3 (4 ) — May be reclassified subsequently to profit or loss — — 2 3 (4 ) 2 Differences resulting from the translation of foreign currency financial statements (7 ) (2 ) — Available-for-sale Changes in fair value recognized during the year — — 123 Net deferred tax debited to other comprehensive income — — (31 ) — — 92 Note: The Group has initially applied IFRS 9 at January 1, 2018. Under the transition methods chosen, comparative information is not restated. See Note 2(b). |
Earnings per share
Earnings per share | 12 Months Ended |
Dec. 31, 2019 | |
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Earnings per share | 18 Earnings per share The calculation of basic earnings per share for the year ended December 31, 2019 is based on the profit attributable to equity shareholders of the Company of RMB2,640 million (2018: RMB2,895 million; 2017: RMB5,961 million) and the weighted average of 12,267,172,286 shares in issue during the year (2018: 10,718,916,979 shares; 2017: 9,923,585,348 shares ). 2019 2018 2017 million million million Issued ordinary shares at January 1 12,267 10,088 9,818 Effect of issuance of A shares — 450 — Effect of issuance of H shares — 181 106 Weighted average number of ordinary shares at December 31 12,267 10,719 9,924 The amounts of diluted earnings per share are the same as basic earnings per share as there were no dilutive potential ordinary shares in existence for the years ended December 31, 2019, 2018 and 2017. |
Property, plant and equipment,
Property, plant and equipment, net | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Property, plant and equipment, net | 19 Property, plant and equipment, net Aircraft Investment properties Buildings Owned Acquired Other flight Machinery, Total RMB million RMB RMB RMB RMB RMB million RMB Cost: At January 1, 2018 794 12,611 105,974 99,367 21,906 6,629 247,281 Acquisitions through business combinations — 51 — — 12 34 97 Additions — 48 3,644 7,049 1,250 424 12,415 Transfer from construction in progress — 489 4,792 8,038 401 414 14,134 Reclassification on change of holding intention 19 (19 ) — — — — — Reclassification on exercise of purchase option — — 3,940 (3,940 ) — — — Transfer to assets held for sale — — (1,804 ) — (106 ) — (1,910 ) Disposals — (26 ) (7,784 ) (154 ) (774 ) (252 ) (8,990 ) At December 31, 2018 813 13,154 108,762 110,360 22,689 7,249 263,027 Impact on initial application of IFRS 16 (Note 2(b)) — — — (110,360 ) (81 ) — (110,441 ) At January 1, 2019 813 13,154 108,762 — 22,608 7,249 152,586 Acquisitions through business combinations — — — — — 18 18 Additions — 181 3,034 — 2,380 860 6,455 Transferred from construction in progress (Note 20) — 2,515 871 — 200 456 4,042 Reclassification on change of holding intention: - transferred to other property, plant and equipment, net (327 ) 327 — — — — — - transferred to right-of-use (16 ) — — — — — (16 ) Transferred from right-of-use — — 2,641 — — — 2,641 Disposals — (131 ) (2,032 ) — (803 ) (330 ) (3,296 ) At December 31, 2019 470 16,046 113,276 — 24,385 8,253 162,430 Accumulated depreciation and impairment losses: At January 1, 2018 270 3,965 50,995 17,011 11,678 4,436 88,355 Depreciation charge for the year 29 413 5,667 5,776 1,462 622 13,969 Reclassification on change of holding intention 15 (15 ) — — — — — Reclassification on exercise of purchase options — — 1,072 (1,072 ) — — — Transferred to assets held for sale — — (1,582 ) — (104 ) — (1,686 ) Disposal — (10 ) (6,912 ) (154 ) (664 ) (240 ) (7,980 ) Impairment losses written off on disposals — — (322 ) — (1 ) — (323 ) At December 31, 2018 314 4,353 48,918 21,561 12,371 4,818 92,335 Impact on initial application of IFRS 16 (Note 2(b)) — — — (21,561 ) — — (21,561 ) At January 1, 2019 314 4,353 48,918 — 12,371 4,818 70,774 Depreciation charge for the year 29 444 6,390 — 1,483 683 9,029 Reclassification on change of holding intention: - transferred to other property, plant and equipment, net (172 ) 172 — — — — — - transferred to right-of-use (5 ) — — — — — (5 ) Transferred from right-of-use — — 874 — — — 874 Disposals — (52 ) (1,993 ) — (698 ) (238 ) (2,981 ) Provision for impairment losses (Note 19(d)) — — 18 — — — 18 Impairment losses written off on disposals (Note 19(c)) — — (30 ) — (37 ) — (67 ) At December 31, 2019 166 4,917 54,177 — 13,119 5,263 77,642 Net book value: At December 31, 2019 304 11,129 59,099 — 11,266 2,990 84,788 At December 31, 2018 499 8,801 59,844 88,799 10,318 2,431 170,692 (a) As at December 31, 2019, the accumulated impairment provision of aircraft and flight equipment of the Group is RMB985 million (December 31, 2018: RMB1,034 million). (b) As at December 31, 2019, certain aircraft of the Group with an aggregate carrying value of approximately RMB339 million (December 31, 2018: RMB373 million) were mortgaged under certain loans (Note 36(a)(i)). (c) For the year ended December 31, 2019, certain aircraft and other flight equipment were disposed, against which impairment provision had been provided in previous years and the impairment provision of RMB30 million for these aircraft and RMB37 million for the other flight equipment was written off respectively. (d) As at December 31, 2019, the Group reviewed the recoverable amounts of the aircraft and related assets and made an additional impairment provision of RMB18 million for its aircraft. The estimates of recoverable amounts were based on the greater of the assets’ fair value less costs of disposal and the value in use. The fair value on which the recoverable amount is based is categorized as a level 3 measurement and it was determined by reference to the recent observable market prices for the aircraft fleet and flight equipment. In cases when value in use are based, the pre-tax discount rate used in the estimate is 9.00%. (e) As at December 31, 2019 and up to the date of approval of these financial statements, the Group is in the process of applying for the property title certificates in respect of the properties located in Guangdong, Guangxi, Guizhou, Xiamen, Heilongjiang, Jilin, Beijing, Henan, Xinjiang, Hainan, Shanghai, Hubei, Chongqing, Liaoning and Chengdu, in which the Group has interests and for which such certificates have not been granted. As at December 31, 2019, carrying value of such properties of the Group amounted to RMB7,106 million (December 31, 2018: RMB5,289 million). The Directors of the Company are of the opinion that the use of and the conduct of operating activities at the properties referred to above are not affected by the fact that the Group has not yet obtained the relevant property title certificates. (f) The Group leased out investment properties and facilities under operating leases. The leases typically run for an initial period of one to ten years, with an option to renew the leases after that date at which time all terms are renegotiated. None of the leases includes contingent rentals. In this connection, rental income totalling RMB202 million (2018: RMB178 million; 2017: RMB184 million) was recognized by the Group during the year in respect of the leases. Directors estimated the fair value of these investment properties approximate the carrying amount. The properties are reclassified between investment properties and other property, plant and equipment, upon the intention of commencement or cessation of lease. The Group’s total future minimum lease income under non-cancellable 2019 2018 RMB million RMB million Within 1 year 38 55 After 1 year but within 5 years 74 39 After 5 years 36 7 148 101 (g) As at December 31, 2019, certain investment properties of the Group with an aggregate carrying value of approximately RMB15 million (December 31, 2018: RMB18 million) were mortgaged for certain bank borrowings (Note 36(a)(i)). |
Construction in progress
Construction in progress | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Construction in progress | 20 Construction in progress Advance payment for aircraft and flight Others Total RMB million RMB million RMB million At January 1, 2018 27,543 2,690 30,233 Additions 19,973 4,486 24,459 Transferred to property, plant and equipment (13,231 ) (903 ) (14,134 ) Transferred to others — (155 ) (155 ) Transferred to lease prepayments — (7 ) (7 ) Disposals (2,605 ) — (2,605 ) At December 31, 2018 31,680 6,111 37,791 At January 1, 2019 31,680 6,111 37,791 Additions 10,512 5,780 16,292 Transferred to property, plant and equipment (Note 19) (1,071 ) (2,971 ) (4,042 ) Transferred to right-of-use (10,202 ) (313 ) (10,515 ) Transferred to others — (304 ) (304 ) At December 31, 2019 30,919 8,303 39,222 |
Right-of use assets
Right-of use assets | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Right-of use assets | 21 Right-of-use Aircraft Land use Buildings Others Total RMB RMB RMB RMB RMB (Note 1) Cost: At January 1, 2019 187,991 3,671 1,300 138 193,100 Additions 20,609 225 1,490 51 22,375 Transfer from construction in progress (Note 20) 10,202 110 — 203 10,515 Reclassification with investment properties (Note 19) — 16 — — 16 Transferred to property, plant and equipment on exercise of purchase option (Note 19) (2,641 ) — — — (2,641 ) Disposals (780 ) — — — (780 ) At December 31, 2019 215,381 4,022 2,790 392 222,585 Accumulated amortization: At January 1, 2019 55,048 701 — — 55,749 Amortization charge for the year 14,485 107 637 34 15,263 Reclassification with investment properties (Note 19) — 5 — — 5 Transferred to property, plant and equipment on exercise of purchase option (Note 19) (874 ) — — — (874 ) Disposals (769 ) — — — (769 ) At December 31, 2019 67,890 813 637 34 69,374 Net book value: At December 31, 2019 147,491 3,209 2,153 358 153,211 At January 1, 2019 132,943 2,970 1,300 138 137,351 Note 1: The Group was formally granted the rights to use certain parcels of land by the relevant PRC authorities for periods of 30 to 70 years, which expire between 2020 and 2073. As at December 31, 2019 and up to the date of approval of these financial statements, the Group is in the process of applying for land use right certificates in respect of certain land used by the Group. As at December 31, 2019, carrying value of such land use rights of the Group amounted to RMB843 million (December 31, 2018: RMB922 million). The Directors of the Company are of the opinion that the use of and the conduct of operating activities at the land referred to above are not affected by the fact that the Group has not yet obtained the relevant land use right certificates. As at December 31, 2019, certain land use rights of the Group with an aggregate carrying value of approximately RMB87 million (December 31, 2018: lease prepayments of RMB88 million) were mortgaged for certain bank borrowings (Note 36(a)(i)). In addition to the amortization charged, the analysis of expense items in relation to leases recognized in profit or loss is as follows: 2019 2018 2017 RMB million RMB million RMB million (Note) (Note) Interest on lease liabilities (Note 15) 5,302 2,409 2,009 Interest rate swaps: cash flow hedge, reclassified from equity (Note 15) (18 ) (13 ) 17 Expense relating to leases with remaining lease term ending on or before December 31, 2019 2,092 — — Expense relating to leases of variable lease payments not included in the measurement of lease liabilities 81 — — Total minimum lease payments for leases previously classified as operating leases under IAS 17 — 9,920 8,996 Note: The Group has initially applied IFRS 16 using the modified retrospective approach and adjusted the opening balances at January 1, 2019 to recognize right-of-use right-of-use right-of-use right-of-use During the year, additions to right-of-use Details of total cash outflow for leases and the maturity analysis of lease liabilities are set out in Note 34(d) and Note 37 respectively. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Goodwill | 22 Goodwill 2019 2018 RMB million RMB million Cost and carrying amount: 237 237 Impairment tests for cash-generating units containing goodwill 2019 2018 RMB million RMB million Southern Airlines Group Import and Export Trading Company (“SAIETC”) 182 182 Xiamen Airlines Culture and Media Co., Ltd. (“XACM”) 55 55 Total 237 237 The recoverable amount of the CGU is determined based on value-in-use The cash flows of the above entities are discounted using pre-tax |
Subsidiaries
Subsidiaries | 12 Months Ended |
Dec. 31, 2019 | |
Investments accounted for using equity method [abstract] | |
Subsidiaries | 23 Subsidiaries All the subsidiaries of the Company are unlisted. The following list contains only the particulars of subsidiaries which principally affect the results, assets or liabilities of the Group. Name of company Place of establishment/ operation Registered capital Proportion of ownership interest held by the Principal activity China Southern Airlines Henan Airlines Company Limited (i) PRC RMB 6,000,000,000 60 % Airline transportation Xiamen Airlines (i)&(viii) PRC RMB 8,000,000,000 55 % Airline transportation Chongqing Airlines Company Limited (i) PRC RMB 1,200,000,000 60 % Airline transportation Shantou Airlines Company Limited (i) PRC RMB 280,000,000 60 % Airline transportation Zhuhai Airlines Company Limited (i) PRC RMB 250,000,000 60 % Airline transportation Guizhou Airlines Company Limited (i) PRC RMB 1,220,000,000 60 % Airline transportation Guangzhou Nanland Air Catering Company Limited (ii) PRC RMB 240,000,000 70.50 % Air catering Guangzhou Baiyun International Logistic Company Limited (i) PRC RMB 50,000,000 61 % Logistics operations Beijing Southern Airlines Ground Services Company Limited (i) PRC RMB 18,000,000 100 % Airport ground services Nan Lung International Freight Limited Hong Kong HKD 3,270,000 51 % Freight services Southern Airlines General Aviation Company Limited (i) PRC RMB 1,000,000,000 100 % General aviation SAIETC (i) PRC RMB 15,000,000 100 % Import and export agent services Zhuhai Xiang Yi Aviation Technology Company Limited (“Zhuhai Xiang Yi”) (i)&(vi) PRC RMB 469,848,000 100 % Flight simulation services China Southern Airlines Xiongan Airlines Company Limited (i) PRC RMB 600,000,000 100 % Airline transportation Flying College (v) Australia AUD 39,651,627 84.30 % Pilot training services Southern Airlines Freight and Logistics (Guangzhou) Co.,Ltd (i) PRC RMB 1,000,000,000 100 % Logistics operations Shenyang Northern Aircraft Maintenance Co., Ltd. (“Shenyang Aircraft Maintenance”) (i) PRC RMB 31,520,545 100 % Aircraft repair and maintenance services Guangdong Southern Airline Pearl Aviation Services Company Limited (“Pearl Aviation Services”) (i) & (iv) PRC RMB 5,000,000 100 % Hotel management services (i) These subsidiaries are PRC limited liability companies. (ii) This subsidiary is a sino-foreign equity joint venture company established in the PRC. (iii) Shenyang Aircraft Maintenance Pursuant to the equity transfer agreement entered into between the Company and a third party, the Company acquired 21% equity interests Shenyang Aircraft Maintenance, a former joint venture of the Company, at a cash consideration of RMB14 million on April 23, 2019. On the same date, the Company obtained control over Shenyang Aircraft Maintenance, and Shenyang Aircraft Maintenance became a wholly-owned subsidiary of the Company. The acquisition of Shenyang Aircraft Maintenance enables the Group to engage in comprehensive maintenance service. In the period from the acquisition date to December 31, 2019, Shenyang Aircraft Maintenance contributed revenue of RMB39 million and profit of RMB1 million to the Group’s results. If the acquisition had occurred on January 1, 2019, management estimates that consolidated revenue would have been increased by RMB21 million, and consolidated profit for the year would have been increased by RMB4 million. In determining these amounts, management have assumed that the fair value adjustments that arose on the acquisition date would have been the same if the acquisition had occurred on January 1, 2019. The information above is the amount before inter-company eliminations. The above acquisitions had the following effect on the Group’s assets and liabilities on acquisition date: Recognized values on RMB million Non-current 31 Current assets 41 Non-current (6 ) Current liabilities (3 ) Total net identifiable assets 63 Analysis of the net inflow of cash and cash equivalents in respect of the acquisitions: Cash consideration paid (14 ) Cash and cash equivalents acquired 26 Net cash inflow 12 (iv) Pearl Aviation Services Pursuant to the equity transfer agreement entered into between the Company and the other third parties shareholders of Pearl Aviation Services, the Company acquired 100% equity interests in Pearl Aviation Services at a consideration of RMB9 million on December 17, 2019. On the same date, the Company obtained the control of Pearl Aviation Services, and Pearl Aviation Services became a wholly-owned subsidiary of the company. The acquisition of Pearl Aviation Services enables the Group to engage in hotel management services business. As the acquisition was completed in December, limited amount of revenue and profit were contributed to the Group by Pearl Aviation Services. If the acquisition had occurred on January 1, 2019, management estimates that consolidated revenue would have been increased by RMB499 million, and consolidated profit for the year would have been increased by RMB17 million. In determining these amounts, management have assumed that the fair value adjustments that arose on the acquisition date would have been the same if the acquisition had occurred on January 1, 2019. The information above is the amount before inter-company eliminations. The above acquisitions had the following effect on the Group’s assets and liabilities on acquisition date: Recognized values on RMB million Non-current 19 Current assets 252 Current liabilities (257 ) Total net identifiable assets 14 Analysis of the net inflow of cash and cash equivalents in respect of the acquisitions: Cash consideration paid (9 ) Cash and cash equivalents acquired 173 Net cash inflow 164 (v) Flying College Pursuant to the subscription agreement entered into between the Company, CAE International Holding Limited, Nan Lung Holding Limited and Flying College, the Company made a capital injection of cash equivalent to RMB63 million to Flying College on November 20, 2018, as a result of which the Company’s equity interests in Flying College increased from 48.12% to 84.30%. After the capital injection, the Company is entitled to appoint all 3 members of Board of directors of Flying College in accordance with the subscription agreement, and Flying College thus became a subsidiary of the Company upon completion of the capital injection. The acquisition through the capital injection of Flying College enables the Group to engage in pilot flying training services. In the period from the acquisition date to December 31, 2018, Flying College contributed a loss of RMB5 million to the Group’s results. If the acquisition had occurred on January 1, 2018, management estimates that consolidated revenue would have been increased by RMB0 million, and consolidated profit for the year would have been decreased by RMB60 million. In determining these amounts, management have assumed that the fair value adjustments that arose on the acquisition date would have been the same if the acquisition had occurred on January 1, 2018. The information above is the amount before inter-company eliminations. The above acquisitions had the following effect on the Group’s assets and liabilities on acquisition date: Recognized values on RMB million Non-current 153 Current assets 77 Current liabilities (155 ) Total net identifiable assets 75 Analysis of the net inflow of cash and cash equivalents in respect of the acquisitions: Cash consideration paid (63 ) Cash and cash equivalents acquired 69 Net cash inflow 6 (vi) Pursuant to the equity transfer agreement entered into between the Company and a third party, the Company acquired 49% equity interests in Zhuhai Xiang Yi, a former joint venture of the Company, at a cash consideration of USD99.52 million (equivalent to RMB678 million) on July 10, 2017. Zhuhai Xiang Yi became a wholly-owned subsidiary of the Company upon completion of the acquisition. The acquisition of Zhuhai Xiang Yi enables the Group to engage in flight simulation services. In the period from the acquisition date to December 31, 2017, Zhuhai Xiang Yi contributed revenue of RMB196 million and profit of RMB15 million to the Group’s results. If the acquisition had occurred on January 1, 2017, management estimates that consolidated revenue would have been increased by RMB424 million, and consolidated profit for the year would have been increased by RMB53 million. In determining these amounts, management have assumed that the fair value adjustments that arose on the acquisition date would have been the same if the acquisition had occurred on January 1, 2017. The information above is the amount before inter-company eliminations. The above acquisitions had the following effect on the Group’s assets and liabilities on acquisition date: Analysis of the net outflow of cash and cash equivalents in respect of the acquisitions: Recognized values on RMB million Property, plant and equipment, net 1,556 Lease prepayments 115 Trade and other receivables 70 Cash and cash equivalents 41 Other assets 32 Trade and other payables (34 ) Borrowings (342 ) Deferred tax liabilities (30 ) Other liabilities (24 ) Total net identifiable assets 1,384 Cash consideration paid (678 ) Cash and cash equivalents acquired 41 Net cash outflow (637 ) Effect of the acquisition on the Group’s consolidated income statements Fair value of the originally held 51% equity interests 706 Less: carrying value of the originally held 51% equity interests (597 ) Remeasurement of the originally held 51% equity interests 109 Acquisition-related costs were minimal and included in “general and administrative expenses” in the consolidated income statements. (vii) Pursuant to the equity transfer agreement entered into between the Company’s subsidiary, Xiamen Airlines, and Southern Airlines Culture and Media Co., Ltd. (“SACM”, an associate of the Company) on October 13, 2017, Xiamen Airlines acquired 51% equity interests in XACM, at a consideration of RMB47 million. Xiamen Airlines held 49% equity interest in XACM before the acquisition. XACM became a wholly-owned subsidiary of the Xiamen Airlines upon completion of the acquisition. The acquisition of XACM enables the Group to engage in advertising agency business. In the period from the acquisition date to December 31, 2017, XACM contributed revenue of RMB7 million and profit of RMB1 million to the Group’s results. If the acquisition had occurred on January 1, 2017, management estimates that consolidated revenue would have been increased by RMB44 million, and consolidated profit for the year would have been increased by RMB2 million. In determining these amounts, management have assumed that the fair value adjustments that arose on the acquisition date would have been the same if the acquisition had occurred on January 1, 2017. The information above is the amount before inter-company eliminations. The above acquisitions had the following effect on the Group’s assets and liabilities on acquisition date: Recognized RMB million Trade and other receivables 46 Cash and cash equivalents 2 Trade and other payables (11 ) Total net identifiable assets 37 Analysis of the net outflow of cash and cash equivalents in respect of the acquisitions: Cash consideration paid (47 ) Cash and cash equivalents acquired 2 Net cash outflow (45 ) Goodwill Goodwill was recognized as a result of the acquisitions as follows: Recognized RMB million Total consideration transferred 47 The fair value of 49% equity of XACM on the acquisition date 45 Less: fair value of identifiable net assets (37 ) Goodwill (Note 22) 55 The goodwill resulting from this acquisition represented the expected synergies from combining operations of XACM and the Group. Acquisition-related costs were minimal and included in “general and administrative expenses” in the consolidated income statements. (viii) Material non-controlling As at December 31, 2019, the balance of total non-controlling non-controlling Set out below are the summarized financial information for Xiamen Airlines. 2019 2018 RMB million RMB million (Note) Non-controlling 45 % 45 % Current assets 3,010 4,029 Non-current 53,855 43,234 Current liabilities (15,494 ) (14,397 ) Non-current (22,233 ) (13,678 ) Net assets 19,138 19,188 Carrying amount of non-controlling 9,003 9,035 Revenue 32,612 30,225 Profit for the year 784 915 Total comprehensive income 798 1,111 Profit allocated to non-controlling 350 393 Dividend paid to non-controlling 45 68 Net cash generated from operating activities 8,259 3,559 Net cash (used in) / generated from investing activities (1,990 ) 889 Net cash used in financing activities (6,097 ) (4,363 ) The information above is the amount before inter-company eliminations. Note: The subsidiary has initially applied IFRS 16 using the modified retrospective approach and adjusted the opening balances at January 1, 2019 to recognize right-of-use |
Interest in associates
Interest in associates | 12 Months Ended |
Dec. 31, 2019 | |
Investments accounted for using equity method [abstract] | |
Interest in associates | 24 Interest in associates 2019 2018 RMB million RMB million Share of net assets 3,322 3,181 All the Group’s associates are unlisted without quoted market price. The particulars of the Group’s principal associates as at December 31, 2019 are as follows: Proportion of ownership Place of / operation Group’s effective interest The Company Subsidiaries Proportion of voting rights held by the Group Principal activity Southern Airlines Group Finance Co., Ltd. (“SA Finance”) (Note) PRC 48.59 % 41.81 % 6.78 % 48.59 % Provision of airlines financial services Sichuan Airlines Co., Ltd. (“Sichuan Airlines”) PRC 39 % 39 % — 39 % Airline transportation Southern Airlines Culture and Media Co., Ltd. (“SACM”) PRC 40 % 40 % — 40 % Advertising services Shenyang Konggang Logistic Co.,Ltd. (“Shenyang Konggang”) PRC 42.80 % 42.80 % — 42.80 % Ground services Xinjiang Civil Aviation Property Management Limited PRC 42.80 % 42.80 % — 42.80 % Property management Note: In March 2019, the Group made capital injection of RMB500 million into SA Finance, and the share of equity interest held by the Group increased from 33.98% to 48.59%; There is no associate that is individually material to the Group. The Group has interest in a number of individually immaterial associates that are accounted for using the equity method. The aggregate financial information of these associates is summarized as following: 2019 2018 2017 RMB million RMB million RMB million (Note) (Note) Aggregate carrying amount of individually immaterial associates 3,322 3,181 3,031 Aggregate amounts of the Group’s share of: (Loss)/profit from continuing operations (178 ) 263 431 Other comprehensive income 3 (4 ) 2 Total comprehensive income (175 ) 259 433 Note: The Group has initially applied IFRS 16 at January 1, 2019 using the modified retrospective approach. Under this approach, comparative information is not restated. See Note 2(b). |
Interest in joint ventures
Interest in joint ventures | 12 Months Ended |
Dec. 31, 2019 | |
Investments accounted for using equity method [abstract] | |
Interest in joint ventures | 25 Interest in joint ventures 2019 2018 RMB million RMB million Share of net assets 3,124 2,812 All the Group’s joint ventures are unlisted without quoted market price. The particulars of the Group’s principal joint ventures as at December 31, 2019 are as follows: Proportion of ownership Place of establishment/ operation Group’s effective interest The Company Subsidiaries Proportion of voting rights held by the Group Principal activity Guangzhou Aircraft Maintenance Engineering Co., Ltd. (“GAMECO”) PRC 50 % 50 % — 50 % Aircraft repair and maintenance services MTU Maintenance Zhuhai Co. Ltd. (“MTU”) PRC 50 % 50 % — 50 % Aircraft repair and maintenance services There is no joint venture that is individually material to the Group. The Group has interest in a number of individually immaterial joint ventures that are accounted for using the equity method. The aggregate financial information of these joint ventures is summarized as follows: 2019 2018 2017 RMB RMB RMB Aggregate carrying amount of individually immaterial joint ventures 3,124 2,812 1,015 Aggregate amounts of the Group’s share of: Profit from continuing operations and total comprehensive income 365 200 99 |
Financial assets
Financial assets | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Financial assets | 26 Financial assets Non-current 2019 2018 Note RMB RMB Other equity instrument investments (FVOCI) - Non-listed (i) 188 234 - Non-tradable (i) 861 846 1,049 1,080 Other non-current - Listed shares (i) 74 71 - Non-listed (i) 32 32 106 103 Current financial assets 2019 2018 Note RMB RMB Other financial assets (ii) — 440 Notes: (i) Dividend income generated from the investments amounted to RMB23 million for the year of 2019 in total (2018: RMB20 million). (ii) This represents certain financing product the Group purchased from a commercial bank. |
Derivative financial assets _ (
Derivative financial assets / (liabilities) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Derivative financial assets / (liabilities) | 27 Derivative financial assets / (liabilities) 2019 2018 Note RMB RMB Current assets: Cross currency swaps (i) 187 — Forward foreign exchange contracts (ii) 31 — 218 — Non-current Interest rate swaps (iii) 3 75 C urrent liabilities: Cross currency swaps (i) — (44 ) Notes: (i) The Group entered into cross currency swaps to mitigate its interest rate risk and currency risk. Under the cross currency swaps, the Group agrees with other third parties to exchange the floating interest and principal payments in USD for fixed interest rate ranging from 3.39% to 3.67% per annum (2018: 3.20% to 3.91% per annum) and principal payments in RMB. At December 31, 2019, the fair value of the cross currency swaps amounted to RMB187 million was recognized in assets (December 31, 2018: RMB44 million recognized in liabilities). The notional principal of the outstanding cross currency swaps as at December 31, 2019 amounted to USD620 million (December 31, 2018: USD979 million). (ii) In 2019, the Group entered into forward foreign exchange contracts to mitigate its forward currency risk. At December 31, 2019, the fair value of the forward foreign exchange contracts amounted to RMB31 million was recognized in assets (December 31, 2018: nil). The notional principal of the outstanding forward foreign exchange contracts as at December 31, 2019 amounted to USD1,035 million (December 31, 2018: nil). (iii) In 2015, the Group entered into interest rate swaps to mitigate its cash flow interest rate risk. The interest rate swaps allow the Group to pay at fixed rate from 1.64% to 1.72% per annum to receive LIBOR. The notional principal of the outstanding interest rate swap contracts as at December 31, 2019 amounted to USD325 million (December 31, 2018: USD393 million). |
Changes in fair value of financ
Changes in fair value of financial assets / (liabilities) | 12 Months Ended |
Dec. 31, 2019 | |
Statement of changes in equity [abstract] | |
Changes in fair value of financial assets / (liabilities) | 28 Changes in fair value of financial assets / (liabilities) 2019 2018 RMB million RMB million Other non-current 3 (8 ) Cross currency swaps (Note 27) 231 20 Forward foreign exchange contracts (Note 27) 31 — 265 12 |
Deferred tax assets_(liabilitie
Deferred tax assets/(liabilities) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Deferred tax assets/(liabilities) | 29 Deferred tax assets / (liabilities) (a) Movements of net deferred tax assets are as follows: At December 31, Impact on Initial of IFRS 16 Acquired in business combination (Charged)/ credited to consolidated income Credited to income At December 31, 2019 RMB million RMB million RMB million RMB million RMB million RMB million For the year ended December 31, 2019 Deferred tax assets: Net effect on right-of-use — 1,312 — 511 — 1,823 Accrued expenses 929 — — 185 — 1,114 Provision for major overhauls 697 (417 ) — (18 ) — 262 Contract liabilities/other non-current 81 — — (13 ) — 68 Provision for impairment losses 210 — — (129 ) — 81 Provision for tax losses 22 — — (15 ) — 7 Change in fair value of derivative financial liabilities 11 — — (11 ) — — Others 85 — — 29 — 114 2,035 895 — 539 — 3,469 Deferred tax liabilities: Accrued expenses (211 ) — — 20 — (191 ) Depreciation allowances under tax in excess of the related depreciation under accounting (618 ) — — 140 — (478 ) Change in fair value of derivative financial assets (18 ) — — — 17 (1 ) Change in fair value of other equity instrument investments (236 ) — — — 7 (229 ) Change in fair value of other non-current (19 ) — — (1 ) — (20 ) Change in fair value of financial assets — — — (54 ) — (54 ) Fair value re-measurement (25 ) — (6 ) 2 — (29 ) Others (18 ) — — 4 — (14 ) (1,145 ) — (6 ) 111 24 (1,016 ) Net deferred tax assets 890 895 (6 ) 650 24 2,453 At December 31, Impact on application IFRS 9/15 (Charged)/ credited to consolidated income Charged to income At December 31, RMB million RMB million RMB million RMB million RMB million For the year ended December 31, 2018 Deferred tax assets: Accrued expenses 1,020 — (91 ) — 929 Provision for major overhauls 691 — 6 — 697 Deferred revenue 88 (88 ) — — — Contract liabilities/other non-current — 87 (6 ) — 81 Provision for impairment losses 248 — (38 ) — 210 Provision for tax losses 10 — 12 — 22 Change in fair value of derivative financial liabilities 16 — (5 ) — 11 Others 82 — 3 — 85 2,155 (1 ) (119 ) — 2,035 Deferred tax liabilities: Accrued expenses (216 ) — 5 — (211 ) Depreciation allowances under tax in excess of the related depreciation under accounting (633 ) — 15 — (618 ) Change in fair value of derivative financial assets (11 ) — — (7 ) (18 ) Change in fair value of available-for-sale (141 ) 141 — — — Change in fair value of other equity instrument investments — (156 ) — (80 ) (236 ) Change in fair value of other non-current — (21 ) 2 — (19 ) Fair value re-measurement (26 ) — 1 — (25 ) Others (49 ) — 31 — (18 ) (1,076 ) (36 ) 54 (87 ) (1,145 ) Net deferred tax assets 1,079 (37 ) (65 ) (87 ) 890 (b) Reconciliation to the consolidated statement of financial position: 2019 2018 RMB million RMB million Net deferred tax asset recognized in the statement of financial position 2,692 1,566 Net deferred tax liability recognized in the statement of financial position (239 ) (676 ) 2,453 890 (c) Deferred tax assets not recognized Tax losses in the PRC are available for carrying forward to set off future assessable income for a maximum period of five years. The Group’s unused tax losses of RMB667 million (2018: RMB492 million) have not been recognized as deferred tax assets, as it was determined by management that it is not probable that future taxable profits against which the losses can be utilized will be available before they expire. 2019 2018 RMB million RMB million Expiring in: 2019 — 193 2020 — — 2021 92 95 2022 82 82 2023 116 122 2024 377 — 667 492 As at December 31, 2019, the Group’s other deductible temporary differences amounting to RMB951 million (December 31, 2018: RMB822 million) have not been recognized as deferred tax assets as it was determined by management that it is not probable that future taxable profits will be available for these deductible temporary differences to reverse in the foreseeable future. |
Other assets
Other assets | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Other assets | 30 Other assets Prepayment for exclusive use right of an airport Software Leasehold Others Total RMB million RMB million RMB million RMB RMB At January 1, 2018 220 316 181 677 1,394 Additions — 105 — 407 512 Acquisitions through business combinations — — 36 — 36 Transferred from construction in progress — 69 86 — 155 Disposals — — — (6 ) (6 ) Amortization for the year (10 ) (118 ) (61 ) (126 ) (315 ) At December 31, 2018 210 372 242 952 1,776 Impact on initial application of IFRS 16 (Note 2(b)) (210 ) — — — (210 ) At January 1, 2019 — 372 242 952 1,566 Additions — 75 — 338 413 Acquisitions through business combinations — — 9 23 32 Transferred from construction in progress — 183 113 — 296 Amortization for the year — (148 ) (113 ) (67 ) (328 ) At December 31, 2019 — 482 251 1,246 1,979 Representing: 2019 2018 Note RMB million RMB million Prepayments to related parties for acquisition of long-term assets 43(b)&52(c) 513 227 Amount paid to third parties and others 1,466 1,549 1,979 1,776 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Inventories | 31 Inventories 2019 2018 RMB million RMB million Consumable spare parts and maintenance materials 1,683 1,688 Other supplies 264 232 1,947 1,920 Less: provision (54 ) (221 ) 1,893 1,699 Provision for inventories is shown as below: 2019 2018 RMB million RMB million At January 1 221 226 Provision for inventories 20 12 Provision written off upon disposal (187 ) (17 ) At December 31 54 221 |
Trade and Other receivables
Trade and Other receivables | 12 Months Ended |
Dec. 31, 2019 | |
Statement [LineItems] | |
Trade and Other receivables | 32 Trade receivables 2019 2018 RMB million RMB million Trade receivables 3,188 2,937 Less: loss allowance (36 ) (36 ) 3,152 2,901 (a) Ageing analysis Credit terms granted by the Group to sales agents and other customers generally range from one to three months. Ageing analysis of trade receivables based on transaction date is set out below: 2019 2018 RMB million RMB million Within 1 month 2,308 2,325 More than 1 month but less than 3 months 555 492 More than 3 months but less than 12 months 297 90 More than 1 year 28 30 3,188 2,937 Less: loss allowance (36 ) (36 ) 3,152 2,901 All of the trade receivables are expected to be recovered within one year. (b) Trade receivables by currencies The carrying amounts of the Group’s trade receivables are denominated in the following currencies: 2019 2018 RMB million RMB million RMB 2,686 2,430 USD 151 179 EURO 65 104 AUD 33 6 TWD 22 27 GBP 18 13 Others 213 178 3,188 2,937 As at December 31, 2019, the fair value of trade receivables approximates its carrying amount. |
Other receivables [member] | |
Statement [LineItems] | |
Trade and Other receivables | 33 Other receivables 2019 2018 Note RMB million RMB million VAT recoverable 5,214 5,342 Government grants receivables (i) 1,275 982 Rebate receivables on aircraft acquisitions 616 686 Other deposits 203 426 Others (ii) 557 584 7,865 8,020 Less: loss allowance (5 ) (5 ) 7,860 8,015 Notes: (i) Government grants receivables are recognized as there is reasonable assurance that they will be received and the Group has complied with the conditions attaching to them. (ii) The amounts include term deposits of RMB43 million (December 31, 2018: RMB264 million), which have a maturity over 3 months at acquisition. The weighted average annualized interest rate of term deposits as at December 31, 2019 is 2.54% (December 31, 2018: 2.26%). As at December 31, 2019, the fair value of other receivables approximates to their carrying amount. |
Cash and cash equivalents
Cash and cash equivalents | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Cash and cash equivalents | 34 Cash and cash equivalents (a) Cash and cash equivalents comprise: 2019 2018 RMB million RMB million Deposits in banks and other financial institutions 1 19 Cash at bank and other financial institutions and on hand 1,848 6,909 Cash and cash equivalents in the consolidated statement of financial position 1,849 6,928 As at December 31, 2019, the fair value of cash and cash equivalents approximates its carrying amount. The carrying amounts of the Group’s cash and cash equivalents are denominated in the following currencies: 2019 2018 RMB million RMB million RMB 1,231 6,281 USD 395 267 EURO 34 53 AUD 59 138 JPY 17 22 HKD 13 22 Others 100 145 1,849 6,928 (b) Reconciliation of profit before income tax to cash generated from operating activities: 2019 2018 2017 Note RMB RMB RMB million (Note(i)) (Note (i)&(ii)) Profit before income tax 4,055 4,364 8,874 Adjustments for: Depreciation and amortization charges 12 24,292 13,969 12,963 Other amortization 12 328 339 199 Impairment losses on property, plant, equipment 19 18 — 324 Share of associates’ results 24 178 (263 ) (431 ) Share of joint ventures’ results 25 (365 ) (200 ) (99 ) Gain on disposal of property, plant and equipment and construction in progress 14 (140 ) (602 ) (989 ) Changes in fair value of financial instruments 28 (265 ) (12 ) 64 Remeasurement of the originally held equity interests in a joint venture (13 ) — (109 ) Interest income (74 ) (125 ) (89 ) Interest expense 15 5,845 3,202 2,747 Dividends income from other non-current (23 ) (20 ) — Dividend income from investments — — (18 ) Exchange losses / (gains), net 1,268 2,820 (642 ) Changes in working capital: Increase in inventories (179 ) (77 ) (34 ) (Decrease) /increase in contract liabilities and other non-current (337 ) 450 — Increase / (decrease) in sales in advance of carriage 1,709 1,441 (567 ) Increase / (decrease) in deferred benefits and gains 73 (147 ) 362 Decrease / (increase) in operating receivables 1,178 (5,322 ) (281 ) Increase in operating payables 2,180 1,357 1,204 Cash generated from operating activities 39,728 21,174 23,478 Notes: (i) The Group has initially applied IFRS 16 using the modified retrospective approach and adjusted the opening balances at January 1, 2019 to recognize right-of-use (ii) The Group has initially applied IFRS 15 and IFRS 9 at January 1, 2018. Under the transition methods chosen, comparative information is not restated. See Note 2(b). (c) Reconciliation of liabilities arising from financing activities Bank loans Obligations Lease liabilities Interest rate Cross (liabilities) Cross (assets) Total RMB million RMB million RMB million RMB million RMB million RMB million RMB million (Note 36) (Note 38) (Note 37) (Note 27) (Note 27) (Note 27) At December 31, 2018 (Note) 54,417 72,221 — (75 ) 44 — 126,607 Impact on initial application of IFRS 16 — (72,221 ) 120,377 — — — 48,156 At January 1, 2019 54,417 — 120,377 (75 ) 44 — 174,763 Changes from financing cash flows: Proceeds from bank borrowings 33,985 — — — — — 33,985 Proceeds from ultra-short-term financing bills 43,489 — — — — — 43,489 Proceeds from corporate bonds 7,497 — — — — — 7,497 Repayment of bank borrowings (50,374 ) — — — — — (50,374 ) Repayment of ultra-short-term financing bills (25,000 ) — — — — — (25,000 ) Repayment of corporate bonds (12,951 ) — — — — — (12,951 ) Capital element of lease rentals paid — — (17,784 ) — — — (17,784 ) Total changes from financing cash flows (3,354 ) — (17,784 ) — — — (21,138 ) Exchange adjustments 108 — 1,130 — — — 1,238 Changes in fair value — — — 72 (44 ) (187 ) (159 ) Other changes: Increase in lease liabilities from entering into new leases during the year (Note 54) — — 30,351 — — — 30,351 Amortization amount of bond 9 — — — — — 9 Total other changes 9 — 30,351 — — — 30,360 At December 31, 2019 51,180 — 134,074 (3 ) — (187 ) 185,064 Note: The Group has initially applied IFRS 16 using the modified retrospective method and adjusted the opening balances at January 1, 2019 to recognize lease liabilities relating to leases which were previously classified as operating leases under IAS 17. See Note 2(b) and Note 34(b). Bank loans Obligations Interest rate Cross Total RMB million RMB million RMB million RMB million RMB million (Note 36) (Note 38) (Note 27) (Note 27) At January 1, 2018 48,287 67,924 (46 ) 64 116,229 Changes from financing cash flows: Proceeds from bank borrowings 34,385 — — — 34,385 Proceeds from issuance of ultra-short-term financing bills 5,500 — — — 5,500 Proceeds from corporate bonds 2,000 — — — 2,000 Repayment of bank borrowings (34,260 ) — — — (34,260 ) Repayment of ultra-short-term financing bills (1,500 ) — — — (1,500 ) Repayment of corporate bonds (345 ) — — — (345 ) Repayment of principal under finance lease obligations — (10,433 ) — — (10,433 ) Total changes from financing cash flows 5,780 (10,433 ) — — (4,653 ) Exchange adjustments 350 1,440 — — 1,790 Changes in fair value — — (29 ) (20 ) (49 ) Other changes: Additions of obligations under finance leases (Note 54) — 13,290 — — 13,290 Total other changes — 13,290 — — 13,290 At December 31, 2018 54,417 72,221 (75 ) 44 126,607 (d) Total cash outflow for leases Amounts included in the cash flow statement for leases comprise the following: 2019 2018 2017 RMB million RMB million RMB million (Note) (Note) Within operating cash flows (7,457 ) (12,316 ) (11,022 ) Within investing cash flows (224 ) (113 ) — Within financing cash flows (17,784 ) (10,433 ) (9,835 ) (25,465 ) (22,862 ) (20,857 ) Note: As explained in the Note to Note 34(b), the adoption of IFRS 16 introduces a change in classification of cash flows of certain rentals paid on leases. The comparative amounts have not been restated. These amounts relate to the following: 2019 2018 2017 RMB million RMB million RMB million Lease rentals paid (25,241 ) (22,749 ) (20,857 ) Addition of land use rights (224 ) (113 ) — (25,465 ) (22,862 ) (20,857 ) |
Assets held for sale
Assets held for sale | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Assets held for sale | 35 Assets held for sale Assets held for sale mainly represent property, plant and equipment which are planned to be sold in the next 12 months and are measured at the lower of their carrying amounts and fair values less costs to sell. 2019 RMB million 2018 RMB million Owned aircraft and other flight equipment — 224 As at December 31, 2018, the carrying amount of the assets held for sale is RMB224 million, while their fair value less cost to sell is RMB238 million. The fair value on which the recoverable amount is based is categorized as a level 3 measurement. |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Borrowings | 36 Borrowings (a) Borrowings are analyzed as follows: 2019 RMB million 2018 RMB million Non-current Long-term borrowings – secured (Note (i)) 10 511 – unsecured 2,381 8,911 2,391 9,422 Corporate bond – unsecured (Note (ii)) 8,646 4,655 Medium-term notes – unsecured (Note (iii)) 2,600 1,599 13,637 15,676 Current Current portion of long-term – secured (Note (i)) 90 94 – unsecured 51 808 Short-term borrowings – unsecured 12,250 20,739 Ultra-short-term financing bills – unsecured 22,497 4,000 34,888 25,641 Current portion of corporate bond and medium-term notes – unsecured (Notes (ii)&(iii)) 2,655 13,100 37,543 38,741 Total borrowings 51,180 54,417 The borrowings are repayable: Within one year 37,543 38,741 In the second year 3,773 7,757 In the third to fifth year 8,389 6,004 After the fifth year 1,475 1,915 Total borrowings 51,180 54,417 Notes: (i) As at December 31, 2019, bank borrowings of the Group of approximately RMB10 million (December 31, 2018: RMB390 million) were secured by certain owned aircraft with a carrying amount of RMB339 million (December 31, 2018: RMB373 million). Bank borrowings of approximately RMB90 million (December 31, 2018: RMB215 million) were secured by certain land use rights under right-of-use assets of RMB87 million (December 31, 2018: lease prepayments of RMB88 million) and investment property of RMB15 million (December 31, 2018: RMB18 million). (ii) The Group issued corporate bonds with aggregate nominal value of RMB3,000 million on November 20, 2015 at a bond rate of 3.63%. The corporate bonds mature in five years. The Company will be entitled at its option to adjust its bond rate and the investors will be entitled to request the Company to redeem all or a portion of the bonds after three years of the issue date. The bonds with nominal value of RMB345 million were redeemed by the Company in 2018 at the request of investors, and the remaining bonds of RMB2,655 million will mature within one year. The Group issued corporate bonds with aggregate nominal value of RMB5,000 million on March 3, 2016 at a bond rate of 2.97%. The corporate bonds mature in three years. The bonds with nominal value of RMB5,000 million were redeemed by the Company in 2019. The Group issued corporate bonds with aggregate nominal value of RMB5,000 million on May 25, 2016 at a bond rate of 3.12%. The corporate bonds mature in five years. The Company will be entitled at its option to adjust its bond rate and the investors will be entitled to request the Company to redeem all or a portion of the bonds after three years of the issue date. The bonds with nominal value of RMB4,851 million were redeemed by the Company in 2019 at the request of investors, and the remaining bonds of RMB149 million will mature in five years from the issue date. The Group issued corporate bonds with aggregate nominal value of RMB2,000 million on November 26, 2018 at a bond rate of 3.92%. The corporate bonds mature in three years. The Group issued corporate bonds with aggregate nominal value of RMB3,000 million on February 21, 2019 at a bond rate of 3.45%. The corporate bonds mature in three years. The Group issued corporate bonds with aggregate nominal value of RMB2,000 million on May 16, 2019 at a bond rate of 3.72%. The corporate bonds mature in three years. Xiamen Airlines issued corporate bonds with aggregate nominal value of RMB1,500 million on November 20, 2019 at a bond rate of 3.58%. The corporate bonds mature in three years. (iii) Xiamen Airlines issued medium-term notes with aggregate nominal value of RMB1,300 million on August 15, 2016 at an interest rate of 2.97%. The medium-term notes mature in three years and were redeemed in 2019. Xiamen Airlines issued medium-term notes with aggregate nominal value of RMB1,600 million on October 20, 2016 at an interest rate of 3.11%. The medium-term notes mature in five years. Xiamen Airlines issued medium-term notes with aggregate nominal value of RMB1,800 million on November 21, 2016 at an interest rate of 3.38%. The medium-term notes mature in three years and were redeemed in 2019. The Group issued medium-term notes with aggregate nominal value of RMB1,000 million on October 18, 2019 at an interest rate of 3.20%. The medium-term notes mature in three years. (b) As at December 31, 2019, the Group’s weighted average interest rates on short-term borrowings were 3.70% per annum (December 31, 2018: 3.92% per annum). (c) Details of borrowings with original maturity over one year are as follows: 2019 RMB million 2018 RMB million Renminbi denominated loans Fixed interest rate at 1.20% per annum as at December 31, 2019, with maturities through 2027 19 19 Corporate Bond - Fixed bond rate at 2.97%~3.92% 11,301 14,655 Medium-term notes - Fixed interest rate at 2.97%~3.38% 2,600 4,699 Floating interest rates 90%~100% of benchmark interest rate (stipulated by PBOC) as at December 31, 2019, with maturities through 2033 1,633 10,213 Fixed interest rate at 3.92% per annum as at December 31, 2019, with maturities through 2022 800 — Fixed interest rate at 4.41% per annum as at December 31, 2019, with maturities through 2034 80 — USD denominated loans Fixed interest rate at 3.32% per annum as at December 31, 2018, with maturities through 2020 — 92 16,433 29,678 Less: loans due within one year classified as current liabilities (2,796 ) (14,002 ) 13,637 15,676 (d) The carrying amounts of the borrowings are denominated in the following currencies: 2019 RMB million 2018 RMB million Renminbi 46,823 47,607 USD 4,357 6,810 51,180 54,417 The Group has certain borrowings as well as significant lease liabilities (Note 37) which are denominated in USD as at December 31, 2019. The net exchange loss of RMB1,477 million for the year ended December 31, 2019 (2018: net exchange loss of RMB1,853 million; 2017: net exchange gain of RMB1,801 million) was mainly attributable to the translation of balances of borrowings and lease liabilities which are denominated in USD. (e) The balance of long-term and short-term borrowings as at December 31, 2019 included entrusted loans from CSAH via SA Finance to the Group amounted to RMB800 million and RMB4,720 million (December 31, 2018: Nil and RMB500 million), respectively (Note 52(d)(ii)). (f) Certain of the Group’s banking facilities are subject to the fulfilment of covenants relating to certain of the Group’s consolidated statement of financial position ratios, as are commonly found in lending arrangements with financial institutions. If the Group were to breach the covenants, the drawn down facilities would become payable on demand. The Group regularly monitors its compliance with these covenants. Further details of the Group’s management of liquidity risk are set out in Note 4(a). As at December 31, 2019 and 2018, none of the covenants relating to drawn down facilities had been breached. |
Lease liabilities
Lease liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Lease liabilities [abstract] | |
Lease liabilities | 37 Lease liabilities The following table shows the remaining contractual maturities of the Group’s lease liabilities at the end of the current reporting period and at the date of transition to IFRS 16: December 31, 2019 Present value of the Total Present value January 1, 2019 (Note) Total minimum RMB million RMB million RMB million RMB million Within 1 year 19,998 25,404 16,921 21,507 After 1 year but within 2 years 19,249 23,860 16,018 20,033 After 2 years but within 5 years 54,155 63,003 50,709 59,111 After 5 years 40,672 44,814 36,729 40,307 114,076 131,677 103,456 119,451 134,074 157,081 120,377 140,958 Less: total future interest expenses (23,007 ) (20,581 ) Present value of lease liabilities 134,074 120,377 Note: The Group has initially applied IFRS 16 using the modified retrospective approach and adjusted the opening balances at January 1, 2019 to recognize lease liabilities relating to leases which were previously classified as operating leases under IAS 17. These liabilities have been aggregated with the brought forward balances relating to leases previously classified as finance leases. Comparative information as at December 31, 2018 has not been restated as set out in Note 38 and relates solely to leases previously classified as finance leases. Further details on the impact of the transition to IFRS 16 are set out in Note 2(b). Denominated obligations by currencies For the year ended Effective interest USD RMB million Japanese Yen Renminbi RMB million Euro RMB million Other currencies Total RMB million Fixed interest rates 1.75%~5.03% 50,568 10 7,023 15 22 57,638 Floating interest rates 0%~5.22% 15,335 1,272 56,100 3,535 194 76,436 65,903 1,282 63,123 3,550 216 134,074 Denominated obligations by currencies For the year ended Effective interest USD Japanese Yen Renminbi Euro Other currencies Total RMB million Fixed interest rates 1.75%~5.03% 8,630 — 1,097 — — 9,727 Floating interest rates 0%~5.80% 18,237 1,457 38,629 3,927 244 62,494 26,867 1,457 39,726 3,927 244 72,221 |
Obligations under finance lease
Obligations under finance leases | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Obligations under finance leases | 38 Obligations under finance leases As at December 31, 2018, obligations under finance leases are as follows: 2018 Present value of the minimum lease payments Total minimum lease payments Interest RMB million RMB million RMB million Within 1 year 9,555 12,062 2,507 After 1 year but within 2 years 9,572 11,738 2,166 After 2 years but within 5 years 32,285 36,765 4,480 After 5 years 20,809 22,200 1,391 72,221 82,765 10,544 Less: balance due within one year classified as current liabilities (9,555 ) 62,666 The Group has initially applied IFRS 16 at January 1, 2019 using the modified retrospective approach. Under this approach, obligations under finance leases of RMB72,221 million (including the current portion) at December 31, 2018 was reclassified to lease liabilities (Note 37) at January 1, 2019. |
Trade payables
Trade payables | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Trade payables | 39 Trade payables Ageing analysis of trade payables based on transaction date is set out below: 2019 RMB million 2018 RMB million Within 1 month 563 406 More than 1 month but less than 3 months 506 829 More than 3 months but less than 6 months 450 476 More than 6 months but less than 1 year 568 423 More than 1 year 230 175 2,317 2,309 As at December 31, 2019, the fair value of trade payables approximates to their carrying amount. The carrying amounts of the Group’s trade payables are denominated in the following currencies: 2019 RMB million 2018 RMB million Renminbi 1,845 1,910 USD 423 376 Others 49 23 2,317 2,309 |
Contract liabilities
Contract liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Contract liabilities | 40 Contract liabilities 2019 RMB million 2018 Unredeemed credits under the frequent flyer award programs (Notes (i) & (ii)) 1,568 1,693 Others 42 — 1,610 1,693 Notes: (i) As at December 31, 2019, the aggregated amount of the transaction price allocated to the remaining performance obligation, which is the unredeemed credits under the frequent flyer award programs, amounted to RMB3,331 million (December 31, 2018: RMB3,711 million). This amount represents revenue expected to be recognized in the future when the customers take possession of the goods or services redeemed. (ii) The amounts represent the unredeemed credits under the frequent flyer award programs. Movement in the accounts is set out below: 2019 2018 RMB million RMB million Balance at January 1 3,711 3,261 -Current 1,693 1,461 -Non-current 2,018 1,800 Addition as a result of increase of the unredeemed credits under the frequent flyer award programs 1,979 2,161 Reduction as a result of revenue recognized during the year (2,359 ) (1,711 ) Representing: -Recognized as revenue from opening balance of contract liabilities (1,948 ) (1,461 ) -Recognized as revenue from current year addition of contract liabilities (411 ) (250 ) Balance at December 31 3,331 3,711 Representing: -Current 1,568 1,693 -Non-current 1,763 2,018 |
Sales in advance of carriage
Sales in advance of carriage | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Sales in advance of carriage | 41 Sales in advance of carriage As at December 31, 2019, the amount of sales in advance of carriage represents revenue expected to be recognized in the future when the customers take possession of and accept the passenger transportation services to be provided by the Group. During the year, RMB8,398 million (2018: RMB7,279 million) which was included in the opening balance of the sales in advance of carriage was recognized as revenue. |
Other non-current liabilities
Other non-current liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Other non-current liabilities | 42 Other non-current Note 2019 2018 Unredeemed credits under the frequent flyer award programs 40 1,763 2,018 Others 19 18 1,782 2,036 |
Balances with related companies
Balances with related companies | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Balances with related companies | 43 Balances with related companies (a) Amounts due from related companies Note 2019 2018 Current CSAH and its affiliates 18 51 Associates 35 22 Joint ventures 20 17 52(c) 73 90 The amounts due from related companies are unsecured, interest free and have no fixed terms of repayment. They are expected to be recovered within one year. (b) Prepayments to related companies for acquisition of long-term assets Note 2019 2018 RMB million RMB million Non-current CSAH and its affiliates 160 80 An associate 353 147 30&52(c) 513 227 (c) Amounts due to related companies 2019 2018 Note RMB million RMB million Current CSAH and its affiliates 116 49 Associates 1 12 Joint ventures 53 63 Other related companies — 3 52(c) 170 127 The amounts due to related companies are unsecured, interest free and have no fixed terms of repayment. They are expected to be settled within one year. |
Accrued expenses
Accrued expenses | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Accrued expenses | 44 Accrued expenses 2019 2018 RMB million RMB million (Note) Repairs and maintenance 4,312 4,468 Jet fuel costs 1,846 1,900 Salaries and welfare 3,974 3,212 Landing and navigation fees 2,612 2,492 Computer reservation services 461 585 Provision for major overhauls (Note 46) 883 821 Interest expenses 345 771 Air catering expenses 147 166 Provision for early retirement benefits (Note 47) 1 2 Others 1,164 1,265 15,745 15,682 Note: The Group has initially applied IFRS 16 at January 1, 2019 using the modified retrospective approach. Under this approach, comparative information is not restated. See Note 2(b). |
Other liabilities
Other liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Other liabilities | 45 Other liabilities 2019 2018 RMB million RMB million Civil Aviation Development Fund and airport tax payable 1,937 2,012 Payable for purchase of property, plant and equipment 2,070 1,608 Sales agent deposits 592 597 Other taxes payable 426 443 Deposit received for chartered flights 214 186 Others 2,002 1,727 7,241 6,573 As at December 31, 2019, the fair value of the balances approximate their carrying amount. |
Provision for major overhauls
Provision for major overhauls | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Provision for major overhauls | 46 Provision for major overhauls Details of provision for major overhauls in respect of aircraft held under leases are as follows: 2019 2018 RMB million RMB million At January 1 (Note) 4,349 3,370 Additional provision 768 943 Utilization (692 ) (661 ) At December 31 4,425 3,652 Less: current portion (Note 44) (883 ) (821 ) 3,542 2,831 Note: On the date of transition to IFRS 16, provision for major overhauls of RMB697 million (including current portion) were recognized at January 1, 2019. See Note 2(b). |
Provision for early retirement
Provision for early retirement benefits | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Provision for early retirement benefits | 47 Provision for early retirement benefits Details of provision for early retirement benefits in respect of obligations to early retired employees are as follows: 2019 2018 RMB million RMB million At January 1 4 7 Provision for the year (Note 13) — 1 Payments made during the year (3 ) (4 ) At December 31 1 4 Less: current portion (Note 44) (1 ) (2 ) — 2 The Group has implemented an early retirement plan for certain employees. The benefits of the early retirement plan are calculated based on factors including the remaining number of years of service from the date of early retirement to the normal retirement date and the salary amount on the date of early retirement of the employees. The present value of the future cash flows expected to be required to settle the obligations is recognized as provision for early retirement benefits. |
Deferred benefits and gains
Deferred benefits and gains | 12 Months Ended |
Dec. 31, 2019 | |
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Deferred benefits and gains | 48 Deferred benefits and gains 2019 2018 RMB million RMB million (Note) Leases rebates — 47 Maintenance rebates 600 746 Gains relating to sale and leaseback — 15 Government grants 222 85 Others 11 13 833 906 Note: On the date of transition to IFRS 16, leases rebates of RMB47 million, maintenance rebates of RMB84 million and gains relating to sales and leaseback of RMB15 million, previously included in deferred benefits and gains, were adjusted to costs of right-of-use |
Share capital
Share capital | 12 Months Ended |
Dec. 31, 2019 | |
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Share capital | 49 Share capital 2019 2018 RMB million RMB million Registered, issued and paid up capital: Trade-restricted: 489,202,658 A shares of RMB1.00 each 489 489 Nil A share (2018: 1,088,870,431 shares of RMB1.00 each) (Note (ii)) — 1,089 600,925,925 H shares of RMB1.00 each 601 601 1,090 2,179 Tradable: 4,039,228,665 A shares of RMB1.00 each owned by CSAH 4,039 4,039 4,072,291,766 A shares of RMB1.00 each 4,073 2,984 3,065,523,272 H shares of RMB1.00 each 3,065 3,065 11,177 10,088 12,267 12,267 Notes: (i) All the A and H shares rank pari passu in all material respects. (ii) In September 2018, the Company issued 1,578,073,089 A shares (“new A shares”) to CSAH and other six entities, and issued 600,925,925 H shares (“new H shares”) to a fellow subsidiary of CSAH. The new A shares issued to CSAH are restricted for trading within 36 months upon completion of the issuance, whereas other new A shares issued to other parties are restricted for trading within 12 months upon completion of the issuances. In 2019, the trading restriction of 1,088,870,431 A shares issued to other parties was released. Further, in accordance with the H shares subscription agreement entered into between the Company and the fellow subsidiary of CSAH, the fellow subsidiary of CSAH committed not to trade or transfer any of the new H shares within 36 months upon completion of the issuance. |
Reserves
Reserves | 12 Months Ended |
Dec. 31, 2019 | |
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Reserves | 50 Reserves (a) Dividends Dividends payable to equity shareholders of the Company attributable to the year: 2019 2018 RMB RMB Nil dividend proposed after the end of the reporting year (2018: RMB0.05 per share) (inclusive of applicable tax) — 613 The directors did not propose any final dividend in respect of the year ended December 31, 2019 (2018: RMB0.05 per share (inclusive of applicable tax), amounting to a total dividend of RMB613 million). (b) Share premium The share premium represents the difference between the par value of the shares of the Company and proceeds received from the issuance of the shares of the Company. (c) Fair value reserve (recycling) The fair value reserve (recycling) represents the hedge reserve which comprises the effective portion of the cumulative net change in the fair value of hedging instruments used in cash flow hedges pending subsequent recognition of the hedged cash flow in accordance with the accounting policy adopted for cash flow hedges in Note 2(g). (d) Fair value reserve (non-recycling) The fair value reserve (non-recycling) comprises the cumulative net change in the fair value of equity investments designated at FVOCI under IFRS 9 that are held at the end of the reporting period (see Note 2(f)). (e) Other reserves Other reserves mainly comprise statutory surplus reserve. According to the PRC Company Law and the Articles of Association of the Company and certain of its subsidiaries, the Company and the relevant subsidiaries are required to transfer 10% of their annual net profits after taxation, as determined under the PRC accounting rules and regulations, to a statutory surplus reserve until the reserve balance reaches 50% of the registered capital. The transfer to this reserve must be made before distribution of dividend to shareholders and when there are retained profits at the end of the financial year. Statutory surplus reserve can be used to offset prior years’ losses, if any, and may be converted into share capital by the issue of new shares to shareholders in proportion to their existing shareholding or by increasing the par value of the shares currently held by them, provided that the balance after such issue is not less than 25% of the registered capital. For the year ended December 31, 2019, the Company made appropriation of statutory surplus reserve of RMB181 million (2018: RMB221 million). For the year ended December 31, 2019, the Group recorded an increase in other reserves of RMB44 million arising from adjustments in carrying amount of interest in associates relating to changes in an associate’s reserves (2018: RMB4 million), and recorded a decrease in other reserves of RMB10 million arising from acquisition of non-controlling interests in a subsidiary (2018: Nil). |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2019 | |
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Commitments | 51 Commitments (a) Capital commitments Capital commitments outstanding as at December 31, 2019 and 2018, not provided for in the financial statements were as follows: 2019 2018 RMB million RMB million Commitments in respect of aircraft and flight equipment – authorized and contracted for 71,224 82,199 Investment commitments – authorized and contracted for – share of capital commitments of a joint venture 322 26 – capital contributions for acquisition of non-controlling interests in a subsidiary 232 — – capital contributions for acquisition of interests in a joint venture — 14 554 40 – authorized but not contracted for – share of capital commitments of a joint venture 31 21 585 61 Commitments for other property, plant and equipment – authorized and contracted for 4,571 7,224 – authorized but not contracted for 10,451 14,062 15,022 21,286 86,831 103,546 As at December 31, 2019 and 2018, the approximate total future payments, including estimated amounts for price escalation through anticipated delivery dates for aircraft and flight equipment are as follows: 2019 2018 RMB million RMB million 2019 — 38,141 2020 41,442 32,395 2021 21,077 8,628 2022 5,464 3,035 2023 and afterwards 3,241 — 71,224 82,199 (b) Operating lease commitments As at December 31, 2018, the Group recorded a total commitment to operating leases of RMB75,729 million for contracted lease. Among which, the Group had operating lease commitments to CSAH and its affiliates in respect of lease payments for land and buildings of RMB665 million and aircraft of RMB78 million. The Group is the lessee in respect of a number of properties, aircraft and flight equipment held under leases which were previously classified as operating leases under IAS 17. The Group has initially applied IFRS 16 using the modified retrospective approach. Under this approach, the Group adjusted the opening balances at January 1, 2019 to recognize lease liabilities relating to these leases (see Note 2(b)). From January 1, 2019 onwards, future lease payments are recognized as lease liabilities in the consolidated statement of financial position in accordance with the policies set out in Note 2(k), and the details regarding the Group’s future lease payments are disclosed in Note 37. |
Material related party transact
Material related party transactions | 12 Months Ended |
Dec. 31, 2019 | |
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Material related party transactions | 52 Material related party transactions (a) Key management personnel remuneration Remuneration for key management personnel of the Group, including amounts paid to the Company’s directors (excluding independent non-executive 2019 2018 2017 RMB ’000 RMB ’000 RMB ’000 Salaries, wages and welfare 13,803 15,218 12,151 Retirement scheme contributions 1,785 1,797 1,841 15,588 17,015 13,992 2019 2018 2017 RMB ’000 RMB ’000 RMB ’000 Directors and supervisors (Note 60) 1,298 878 2,952 Senior management 14,290 16,137 11,040 15,588 17,015 13,992 Total remuneration is included in “staff costs” (Note 13). (b) Transactions with CSAH and its affiliates, associates, joint ventures and other related companies of the Group The Group provided various operational services to CSAH and its affiliates, associates, joint ventures and other related companies of the Group during the normal course of its business. The Group also received operational services provided by these entities. Details of the significant transactions carried out by the Group are as follows: 2019 2018 2017 Note RMB million RMB million RMB Income received from CSAH and its affiliates Cargo handling income and rental income (i) 7 4 3 Aviation material sales income (ii) 36 6 4 Entrusted management income (iii) 27 27 — Commission income (iv) 14 — — Others 1 9 8 Purchase of goods and services from CSAH and its affiliates Cargo handling charges (v) — 111 112 Commission expenses (v) 44 14 44 Transportation expense (v) — 10 — Maintenance material purchase expense and lease charges for maintenance material (ii) 165 98 43 Software service expenses (ii) — 5 4 Air catering supplies expenses (i) 142 135 125 Repairing charges (vi) — 1,184 1,537 Lease charges for land and buildings (vii) 353 294 189 Property management fee (viii) 151 106 72 Acquisition of property (ix) — 160 — Others 7 5 12 Purchase of goods and services from joint ventures and associates Repairing charges (vi) 2,442 786 — Repairing charges and maintenance material purchase expenses (x) 2,956 2,692 2,492 Flight simulation service charges (xxiv) — — 194 Training expenses (xxv) — — 36 Ground service expenses (xi) 112 123 123 Air catering supplies (xii) 93 98 109 Advertising expenses (xiii) 196 105 74 Property management fee (xiv) 26 28 26 Commission expenses (xv) 14 — — Others 7 7 6 Income received from joint ventures and associates Maintenance material sales and handling income (xvi) 7 15 28 Rental income (xxiv) — — 18 Entrustment income for advertising media business (xiii) 1 1 20 Repairing income (xv) 4 11 1 Air catering supplies income (xv) 35 16 26 Transfer of pilots income (xv) 35 — — Commission income (xvii) — 20 26 Ground service income (xviii) 16 13 10 Labor service income and rental income (xix) 8 22 20 Others 15 13 7 Income received from other related company Air tickets income (xx) — 9 6 Purchase of goods and services from other related companies Advertising expenses (xx) — 10 10 Computer reservation services (xxii) 685 592 576 Aviation supplies expenses (xxi) 53 48 39 Canteen service (xxi) 24 19 15 Others 9 3 4 Acquisition from CSAH and its affiliates Acquisition of a subsidiary (xiii) — — 47 Equity transaction (vi) — 1,602 — Aircraft related transactions with CSAH and its affiliates Payment of lease charges on aircraft (xxiii) 2,696 1,542 175 Consideration of disposal of aircraft (xxiii) — 481 — (i) Shenzhen Air Catering Co., Ltd. (“SACC”) is an associate of CSAH. Air catering supplies expenses are payable by the Group in respect of certain in-flight In addition, the Group leased certain equipment to SACC under operating lease agreements. (ii) China Aviation Supplies Holding Company (“CASC”) is an associate of CSAH. The Group purchases software service, as well as purchases and leases maintenance material from CASC, and CASC also purchases maintenance material from the Group. (iii) The Group provides entrusted management service to CSAH. (iv) Southern Airlines Insurance Brokerage Co., Ltd. (“SAIB”), is a wholly-owned subsidiary of CSAH. The Group provides certain website resources to SAIB for the sales of air insurance. (v) China Southern Airlines Group Ground Services Co., Ltd. (“GSC”), is a wholly-owned subsidiary of CSAH. GSC entered into liquidation at the year end of 2018 and has no transaction with the Group this year. Commission is earned by Shenzhen Baiyun Air Service Co.,Ltd., the subsidiary of GSC, in connection with the air tickets sold by them on behalf of the Group. Commission is calculated based on the rates stipulated by the Civil Aviation Administration of China and International Air Transportation Association. (vi) MTU, a former joint venture of CSAH, provides comprehensive maintenance services to the Group. MTU became a joint venture of the Group on August 28, 2018. (vii) The Group leases certain land and buildings in the PRC from CSAH and its affiliates. The amount represents rental payments for land and buildings paid or payable to CSAH and its affiliates. (viii) China Southern Airlines Group Property Management Co., Ltd., a wholly-owned subsidiary of CSAH. COHL & CSAH Construction Development Co., Ltd., a joint venture of CSAH. Both of them provide property management services to the Group. (ix) The Group acquires properties from COHL & CSAH Construction Development Co., Ltd. (x) GAMECO and Shenyang Aircraft Maintenance, joint ventures of the Group, provide comprehensive maintenance services to the Group. The Company acquired 21% equity interest in Shenyang Aircraft Maintenance on April 23, 2019, Shenyang Aircraft Maintenance became a wholly-owned subsidiary of the Company (Note 23(iii)). The Group also purchases maintenance material from GAMECO. (xi) Beijing Aviation Ground Services Co., Ltd. and Shenyang Konggang Logistic Co., Ltd., associates of the Group provide ground services to the Group. (xii) Beijing Airport Inflight Kitchen Co., Ltd. is an associate of the Group and provides air catering related services to the Group. (xiii) SACM, an associate of the Group, provides advertising services to the Group. The Group provides certain media resources to SACM. XACM, a former associate of Xiamen Airlines, provided advertising service to Xiamen Airlines. In October 2017, XACM became a wholly-owned subsidiary of Xiamen Airlines. Xiamen Airlines provides certain media resources to XACM before the acquisition. (xiv) Xinjiang Civil Aviation Property Management Ltd., an associate of the Group, provides property management services to the Group. (xv) The Group provides repairing service and air catering supplies service to Sichuan Airlines. Commission is earned by Sichuan Airlines in connection with the air tickets sold on behalf of the Group. In addition, the Group transferred pilots to Sichuan Airlines. (xvi) The Group imports and sells maintenance materials to GAMECO and earns maintenance material sales and handling income. (xvii) The Group provides certain website resources to SA Finance for the sales of air insurance. (xviii) The Group provides ground services to Shenyang Konggang Logistic Co., Ltd. and Sichuan Airlines, which are associates of the Group. (xix) The Group provides labor service to Shenyang Aircraft Maintenance, and the charge rates are determined by reference to prevailing market price. In addition, the Group leases certain property and equipment to Shenyang Aircraft Maintenance. (xx) Phoenix Satellite Television Holdings Ltd. (“the Phoenix Group”) was a related party of the Group as the board chairman of the Phoenix Group was appointed as a non-executive In addition, the Group sells tickets to the Phoenix Group on market price. (xxi) The chairman of Pearl Aviation Services is the key management personnel of the Company. The Group purchases aviation supplies and canteen services from Pearl Aviation Services. In December 2019, Pearl Aviation Services became a wholly-owned subsidiary of the Group (Note 23(iv)). (xxii) China Travel Sky Holding Company is a related party of the Group as a key management personnel of the Group was appointed as the director of China Travel Sky Holding Company. It provides computer reservation services. (xxiii) China Southern Airlines International Finance Leasing Co., Ltd. (“CSA International”), originally a wholly-owned subsidiary of CSAH, and became a joint venture of CSAH in 2019, provides aircraft and engines lease services to the Group. Also, the Group disposed aircraft to CSA International. (xxiv) Zhuhai Xiang Yi, a former joint venture of the Group, provides flight simulation services to the Group. In addition, the Group leased certain flight training facilities and buildings to Zhuhai Xiang Yi. In July 2017, Zhuhai Xiang Yi became a wholly-owned subsidiary of the Company. The amount represents the transactions in 2017 which incurred prior to the acquisition (Note 23(vi)). (xxv) Flying College, a former joint venture of the Group, provides training services to the Group. Flying College became a subsidiary of the Group on November 20, 2018 (Note 23(v)). (c) Balances with CSAH and its affiliates, associates, joint ventures and other related companies of the Group Details of amounts due from/to CSAH and its affiliates, associates, joint ventures and other related company of the Group: 2019 2018 Note RMB million RMB million Receivables: CSAH and its affiliates 18 51 Associates 35 22 Joint ventures 20 17 43(a) 73 90 2019 2018 Note RMB million RMB million Prepayments of acquisition of long-term assets: CSAH and its affiliates 160 80 An associate 353 147 30&43(b) 513 227 2019 2018 Note RMB million RMB million Payables: CSAH and its affiliates 116 49 Associates 1 12 Joint ventures 53 63 Other related companies — 3 43(c) 170 127 2019 2018 RMB million RMB million Accrued expenses: CSAH and its affiliates 55 62 Associates 169 139 Joint ventures 2,092 2,320 Other related companies 274 633 2,590 3,154 Lease liabilities The CSAH and its affiliates 23,734 — Obligations under finance leases: CSAH and its affiliates — 13,360 Except the lease liabilities, the amounts due from/to CSAH and its affiliates, associates, joint ventures and other related companies of the Group are unsecured, interest-free and have no fixed terms of repayment. (d) Loans from and deposits placed with related parties (i) Loans from related parties At December 31, 2019, loans from SA Finance to the Group amounted to RMB76 million (December 31, 2018: RMB758 million). The unsecured loans are repayable as follows: 2019 2018 RMB million RMB million Within 1 year 23 630 After 1 year but within 2 years — 10 After 2 years but within 5 years 53 118 76 758 Interest expense paid on such loans amounted to RMB9 million (2018: RMB18 million ) and the interest rates range from 4.28% to 4.35% per annum during the year ended December 31, 2019 (2018: 3.92% to 4.51% ). (ii) Entrusted loans from CSAH In 2019, CSAH, SA Finance and the Group entered into an entrusted loan agreement, pursuant to which, CSAH, as the lender, entrusted SA Finance to lend RMB5,520 million (December 31, 2018: RMB500 million) to the Group from July 10, 2019 to July 8, 2022. The interest rate is 90% of benchmark interest rate stipulated by PBOC per annum. The unsecured entrusted loans are repayable as follows: 2019 2018 Note RMB million RMB million Within 1 year 36(e) 4,720 500 After 1 year but within 2 years — — After 2 years but within 5 years 36(e) 800 — 5,520 500 Interest expense paid on such loans amounted to RMB86 million (2018: RMB10 million ) at interest rates 3.92% per annum during the year ended December 31, 2019 (2018: 3.92% per annum). (iii) Deposits placed with SA Finance As at December 31, 2019, the Group’s deposits with SA Finance are presented in the table below. The applicable interest rates are determined in accordance with the rates published by the PBOC. 2019 2018 RMB million RMB million Deposits placed with SA Finance 711 5,583 Interest income received on such deposits amounted to RMB40 million during the year ended December 31, 2019 (2018: RMB80 million). (e) Commitments to CSAH As at December 31, 2018, the Group had operating lease commitments to CSAH and its affiliates in respect of lease payments for land and buildings of RMB665 million and aircraft of RMB78 million. The Group is the lessee in respect of a number of properties, aircraft and flight equipment held under leases which were previously classified as operating leases under IAS 17. The Group has initially applied IFRS 16 using the modified retrospective approach. Under this approach, the Group adjusted the opening balances at January 1, 2019 to recognize lease liabilities relating to these leases (see Note 2(b)). From January 1, 2019 onwards, operating lease commitments are recognized as lease liabilities in the statement of financial position in accordance with the policies set out in Note 2(k), and the details regarding the Group’s future lease payments are disclosed in Note 37. As at December 31, 2019, the Group did not have capital commitments to CSAH (December 31, 2018: RMB291 million in respect of capital payments for other flight equipment). |
Employee benefits plan
Employee benefits plan | 12 Months Ended |
Dec. 31, 2019 | |
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Employee benefits plan | 53 Employee benefits plan (a) Retirement benefits Employees of the Group participate in several defined contribution retirement schemes organized separately by the PRC municipal and provincial governments in regions where the major operations of the Group are located. The Group is required to contribute to these schemes at rates ranging from 12% to 16% (2018: 13% to 20%; 2017: 13% to 20%) of salary costs including certain allowances. A member of the retirement schemes is entitled to pension benefits from the Local Labor and Social Security Bureau upon his/her retirement. The retirement benefit obligations of all retired staff of the Group are assumed by these schemes. The Group, at its sole discretion, had made certain welfare subsidy payments to these retirees. In 2014, the Company and its major subsidiaries joined a new defined contribution retirement scheme (“Pension Scheme”) that was implemented by CSAH. The annual contribution to the Pension Scheme is based on a fixed specified percentage of prior year’s annual wage. There will be no further obligation beyond the annual contribution according to the Pension Scheme. The total contribution into the Pension Scheme in 2019 was approximately RMB985 million (2018: RMB598 million; 2017: RMB546 million). (b) Housing benefits The Group contributes on a monthly basis to housing funds organized by municipal and provincial governments based on certain percentages of the salaries of employees. The Group’s liability in respect of these funds is limited to the contributions payable in each year. The Group also pays cash housing subsidies on a monthly basis to eligible employees. The monthly cash housing subsidies are charged to income statement. |
Supplementary information to th
Supplementary information to the consolidated cash flow statement | 12 Months Ended |
Dec. 31, 2019 | |
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Supplementary information to the consolidated cash flow statement | 54 Supplementary information to the consolidated cash flow statement Non-cash (i) Introducing of aircraft During the year ended December 31, 2019, aircraft introduced under leases amounted to RMB30,351 million (2018: aircraft acquired under finance leases RMB13,290 million, 2017: aircraft acquired under finance leases RMB17,283 million). (ii) Acquisition of a joint venture through issuance of new shares During the year ended December 31, 2018, CSAH subscribed the new A shares (Note 49) of the Company with a cash consideration and the equity interests held in MTU, representing 50% of the total equity interests of MTU. The related non-cash |
Contingent liabilities
Contingent liabilities | 12 Months Ended |
Dec. 31, 2019 | |
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Contingent liabilities | 55 Contingent liabilities (a) The Group leased certain properties and buildings from CSAH which were located in Guangzhou, Wuhan, Haikou, etc. However, such properties and buildings lack adequate documentation evidencing CSAH’s rights thereto. Pursuant to the indemnification agreement dated May 22, 1997 between the Group and CSAH, CSAH has agreed to indemnify the Group against any loss or damage arising from any challenge of the Group’s right to use the certain properties and buildings. (b) The Group entered into certain agreements with CSAH in prior years to acquire certain land use right and buildings from CSAH. The change of business registration of such land use right and buildings are still in progress. CSAH issued letters of commitment to the Company, committing to indemnify the Group against any claims from third parties to the Group, or any loss or damage in the Group’s operation activities due to lack adequate documentation of the certain properties and buildings, without recourse to the Group. (c) The Company and its subsidiary, Xiamen Airlines, entered into agreements with certain pilot trainees and certain banks to provide guarantees on personal bank loans amounting to RMB696 million (December 31, 2018: RMB696 million) that can be drawn by the pilot trainees to finance their respective flight training expenses. As at December 31, 2019, total personal bank loans of RMB275 million (December 31, 2018: RMB318 million), under these guarantees, were drawn down from the banks. During the year, no payment has been made by the Group (2018: RMB1 million) to the banks due to the default of payments of certain pilot trainees. |
Comparative figures
Comparative figures | 12 Months Ended |
Dec. 31, 2019 | |
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Comparative figures | 56 Comparative figures The Group has initially applied IFRS 16 at January 1, 2019 using the modified retrospective approach. Under this approach, comparative information is not restated. Further details of the changes in accounting policies are disclosed in Note 2(b). The Group has initially applied IFRS 15 and IFRS 9 at January 1, 2018. Under the transition methods chosen, comparative information is not restated. Further details of the changes in accounting policies are disclosed in Note 2(b). |
Immediate and ultimate controll
Immediate and ultimate controlling party | 12 Months Ended |
Dec. 31, 2019 | |
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Immediate and ultimate controlling party | 57 Immediate and ultimate controlling party As at December 31, 2019, the Directors of the Company consider the immediate parent and ultimate controlling party of the Group to be CSAH, a state-owned enterprise established in the PRC. |
Approval of financial statement
Approval of financial statements | 12 Months Ended |
Dec. 31, 2019 | |
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Approval of financial statements | 58 Approval of financial statements The financial statements were approved by the Board of Directors on April 28, 2020. |
Non-adjusting events after the
Non-adjusting events after the financial year end | 12 Months Ended |
Dec. 31, 2019 | |
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Non-adjusting events after the financial year end | 59 Non-adjusting (a) On October 30, 2019, the Company entered into the A Share Subscription Agreement with CSAH, pursuant to which the Company is to issue not more than 2,453,434,457 (inclusive) new A Shares to CSAH (“the A Share Issuance”). The total funds to be raised from the A Share Issuance will be not more than RMB16,800 million (inclusive). In the meantime, the Company entered into the H Share Subscription Agreement with Nan Lung (a wholly-owned subsidiary of CSAH), pursuant to which the Company is to issue not more than 613,358,614 (inclusive) new H shares (“the H Share Issuance”). The total funds to be raised from the H Share Issuance will be not more than HKD3,500 million (inclusive). The consideration of A and H shares will be satisfied by cash. Both of the A Share Issuance and the H Share Issuance were approved by the Extraordinary General Meeting and the respective Class Meetings on December 27, 2019. The Company received the “Acceptance Notice of the Application for Administration Permission” issued by China Securities Regulatory Commission (“CSRC”) for the A Share Issuance and H share Issuance on 6 January 2020 and 11 February 2020, respectively. The H Share Issuance has been completed on April 15, 2020. On April 24, 2020, the Issuance Examination Committee of the CSRC reviewed the application for the A Share Issuance and informed the Company that the Company’s application for the A Share Issuance was approved. Up to the issuance date of these financial statements, the Company had not received the written approval of A Share Issuance from the CSRC. (b) The COVID-19 |
Directors' and supervisors' emo
Directors' and supervisors' emoluments | 12 Months Ended |
Dec. 31, 2019 | |
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Directors' and supervisors' emoluments | 60 Directors’ and supervisors’ emoluments The remuneration of every director and supervisor for the year ended December 31, 2019 is set out below: Name Directors’ fees Salaries, Housing Employer’s Total RMB ’000 RMB ’000 RMB ’000 RMB ’000 RMB ’000 Executive directors Wang Chang Shun (Note (i)) — — — — — Ma Xu Lun (Note (i)&(iii)) — — — — — Han Wen Sheng (Note (i)&(iii)) — — — — — Zhang Zi Fang (Note (i)&(iv)) — — — — — Supervisors Pan Fu (Note (i)&(iv)) — — — — — Li Jia Shi (Note (ii)) — — — — — Mao Juan — 712 — 129 841 Lin Xiao Chun (Note (iii)) — 367 — 90 457 Independent non-executive Tan Jin Song 150 — — — 150 Jiao Shu Ge 150 — — — 150 Zheng Fan (Note (vi)) 60 — — — 60 Gu Hui Zhong (Note (vi)) 60 — — — 60 The remuneration of every director and supervisor for the year ended December 31, 2018 is set out below: Name Directors’ fees Salaries, Housing Employer’s Total RMB ’000 RMB ’000 RMB ’000 RMB ’000 RMB ’000 Executive directors Wang Chang Shun (Note (i)) — — — — — Tan Wan Geng (Note (i) & (v)) — — — — — Zhang Zi Fang (Note (i) & (iv)) — — — — — Supervisors Pan Fu (Note (i) & (iv)) — — — — — Li Jia Shi (Note (ii)) — 84 — 12 96 Mao Juan — 658 — 124 782 Independent non-executive Tan Jin Song 150 — — — 150 Jiao Shu Ge 150 — — — 150 Zheng Fan (Note (vi)) — — — — — Gu Hui Zhong (Note (vi)) 60 — — — 60 The remuneration of every director and supervisor for the year ended December 31, 2017 is set out below: Name Directors’ fees Salaries, Housing Employer’s Total RMB ’000 RMB ’000 RMB ’000 RMB ’000 RMB ’000 Non-executive Yuan Xin An (Note (i) & (vii)) — — — — — Yang Li Hua (Note (i) & (vii)) — — — — — Executive directors Wang Chang Shun (Note (i) & (x)) — — — — — Tan Wan Geng (Note (i)) — — — — — Zhang Zi Fang (Note (i)) — — — — — Li Shao Bin (Note (vii)) — 812 — 123 935 Supervisors Pan Fu (Note (i)) — — — — — Li Jia Shi — 901 — 126 1,027 Zhang Wei (Note (i) & (vii)) — — — — — Yang Yi Hua (Note (vii) & (ix)) — — — — — Wu De Ming (Note (vii)) — 419 — 127 546 Mao Juan (Note (viii)) — 324 — 120 444 Independent non-executive directors Ning Xiang Dong (Note (vii)) 150 — — — 150 Liu Chang Le (Note (vii)) 150 — — — 150 Tan Jin Song 150 — — — 150 Guo Wei (Note (vii)) 150 — — — 150 Jiao Shu Ge 150 — — — 150 Zheng Fan (Note (viii)) — — — — — Gu Hui Zhong (Note (viii)) — — — — — Notes: (i) These directors or supervisors did not receive any remuneration for their services in the capacity of the directors or supervisors of the Company. They also held management positions in CSAH and their salaries were borne by CSAH. (ii) Mr. Li Jia Shi did not receive any remuneration for his service in the capacity of the supervisor of the Company since February 1, 2018. He also held management position in CSAH and his salary was borne by CSAH. (iii) Appointed on May 8, 2019. (iv) Resigned on May 8, 2019. (v) Mr. Tan Wan Geng was an executive director of the Company before November 30, 2018, and resigned from the Company on November 30, 2018. (vi) Mr. Zheng Fan and Mr. Gu Hui Zhong receive remuneration in accordance with the relevant provisions of the PRC. (vii) Resigned on December 20, 2017. (viii) Appointed on December 20, 2017. (ix) Ms. Yang Yi Hua retired in September 2015, while still served as supervisor before December 20, 2017. Ms. Yang Yi Hua did not receive any remuneration for her service in the capacity of the supervisor of the Company since September 2015. (x) Mr. Wang Chang Shun was a non-executive director of the Company before December 20, 2017 and was appointed to be the executive director since December 20, 2017. |
Possible impact of amendments,
Possible impact of amendments, new standards and interpretations issued but not yet effective for the year ended December 31, 2019 | 12 Months Ended |
Dec. 31, 2019 | |
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Possible impact of amendments, new standards and interpretations issued but not yet effective for the year ended December 31, 2019 | 61 Possible impact of amendments, new standards and interpretations issued but not yet effective for the year ended December 31, 2019 Up to the date of issue of these financial statements, the IASB has issued a number of amendments, new standards and interpretations which are not yet effective for the year ended December 31, 2019 and which have not been adopted in these financial statements. These include the following which may be relevant to the Group. Effective for accounting periods Amendments to IFRS 3, Definition of a business January 1, 2020 Amendments to IAS 1 and IAS 8, Definition of material January 1, 2020 The Group is in the process of making an assessment of what the impact of these developments is expected to be in the period of initial application. So far it has concluded that the adoption of them is unlikely to have a significant impact on the consolidated financial statements. |
Significant accounting polici_2
Significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
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Basis of preparation | (a) Basis of preparation The consolidated financial statements comprise the Group and the Group’s interest in associates and joint ventures. The measurement basis used in the preparation of the consolidated financial statements is the historical cost basis except that the following assets and liabilities are stated at their fair value as explained in the accounting policies set out below: • other equity instrument investments (see Note 2(f)); • other non-current • other financial assets (see Note 2(f)); and • derivative financial assets / liabilities (see Note 2(g)). Non-current The preparation of financial statements in conformity with IFRSs requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. Judgements made by management in the application of IFRSs that have significant effect on the financial statements and major sources of estimation uncertainty are discussed in Note 3. |
Changes in accounting policies | (b) Changes in accounting policies (A) New IFRSs and amendments that are first effective for the year ended December 31, 2019 The IASB has issued a new IFRS, IFRS 16, Leases Except for IFRS 16, Leases IFRS 16, Leases IFRS 16 replaces IAS 17, Leases Determining whether an arrangement contains a lease Operating leases – incentives Evaluating the substance of transactions involving the legal form of a lease right-of-use IFRS 16 also introduces additional qualitative and quantitative disclosure requirements which aim to enable users of the financial statements to assess the effect that leases have on the financial position, financial performance and cash flows of an entity. The Group has initially applied IFRS 16 as from January 1, 2019. The Group has elected to use the modified retrospective approach and has therefore recognized the cumulative effect of initial application as an adjustment to the opening balance of equity at January 1, 2019. Comparative information has not been restated and continues to be reported under IAS 17. Further details of the nature and effect of the changes to previous accounting policies and the transition options applied are set out below: a. New definition of a lease The change in the definition of a lease mainly relates to the concept of control. IFRS 16 defines a lease on the basis of whether a customer controls the use of an identified asset for a period of time, which may be determined by a defined amount of use. Control is conveyed where the customer has both the right to direct the use of the identified asset and to obtain substantially all of the economic benefits from that use. The Group applies the new definition of a lease in IFRS 16 only to contracts that were entered into or changed on or after January 1, 2019. For contracts entered into before January 1, 2019, the Group has used the transitional practical expedient to grandfather the previous assessment of which existing arrangements are or contain leases. Accordingly, contracts that were previously assessed as leases under IAS 17 continue to be accounted for as leases under IFRS 16 and contracts previously assessed as non-lease b. Lessee accounting and transitional impact IFRS 16 eliminates the requirement for a lessee to classify leases as either operating leases or finance leases, as was previously required by IAS 17. Instead, the Group is required to capitalize all leases when it is the lessee, including leases previously classified as operating leases under IAS 17, other than those short-term leases and leases of low-value At the date of transition to IFRS 16 (i.e. January 1, 2019), the Group determined the length of the remaining lease terms and measured the lease liabilities for the leases previously classified as operating leases at the present value of the remaining lease payments, discounted using the relevant incremental borrowing rates at January 1, 2019. The incremental borrowing rates range used for determination of the present value of the remaining lease payments was 4.75%~4.90%. Right-of-use • their carrying amount as if IFRS 16 had been applied since the commencement date, discounted using the lessee’s incremental borrowing rate at the date of initial application—the Group applied this approach to its aircraft and engine leases; or • an amount equal to the lease liability, adjusted by the amount of any prepaid or accrued lease payments—the Group applied this approach to all other leases. To ease the transition to IFRS 16, the Group applied the following recognition exemption and practical expedients at the date of initial application of IFRS 16: • the Group elected not to apply the requirements of IFRS 16 in respect of the recognition of lease liabilities and right-of-use • excluded initial direct costs from the measurement of the right-of-use • when measuring the lease liabilities at the date of initial application of IFRS 16, the Group applied a single discount rate to a portfolio of leases with reasonably similar characteristics (such as leases with a similar remaining lease term for a similar class of underlying asset in a similar economic environment); and • when measuring the right-of-use The following table reconciles the operating lease commitments as disclosed in Note 51(b) as at December 31, 2018 to the opening balance for lease liabilities recognized as at January 1, 2019: January 1, 2019 Operating lease commitments at December 31, 2018 75,729 Less: commitments relating to leases exempt from capitalization: - short-term leases, other leases with remaining lease term ending on or before December 31, 2019 and leases of low-value (924 ) - leases contracts entered before December 31, 2018 but the lease period start after January 1, 2019 (16,612 ) Less: total future interest expenses (10,037 ) Present value of remaining lease payments, discounted using the incremental borrowing rates at January 1, 2019 48,156 Add: finance lease liabilities recognized as at December 31, 2018 72,221 Total lease liabilities recognized at January 1, 2019 120,377 So far as the impact of the adoption of IFRS 16 on leases previously classified as finance leases is concerned, the Group is not required to make any adjustments at the date of initial application of IFRS 16, other than changing the captions for the balances. Accordingly, instead of “obligations under finance leases”, these amounts are included within “lease liabilities”, and the depreciated carrying amount of the corresponding leased assets is identified as right-of-use The following table summarizes the impacts of the adoption of IFRS 16 on the Group’s consolidated statement of financial position: Adoption of IFRS 16 Carrying December 31, Remeasurement Reclassification Carrying January 1, RMB million RMB million RMB million RMB million Line items in the consolidated statement of financial position impacted by the adoption of IFRS 16: Property, plant and equipment, net 170,692 — (88,880 ) 81,812 Right-of-use — 45,437 91,914 137,351 Lease prepayments 2,970 — (2,970 ) — Interest in associates 3,181 (527 ) — 2,654 Deferred tax assets 1,566 717 — 2,283 Other assets 1,776 — (210 ) 1,566 Total non-current 222,877 45,627 (146 ) 268,358 Prepaid expenses and other current assets 3,659 (811 ) — 2,848 Total current assets 24,072 (811 ) — 23,261 Lease liabilities — 6,969 9,952 16,921 Current portion of obligations under finance leases 9,555 — (9,555 ) — Accrued expenses 15,682 (83 ) (397 ) 15,202 Total current liabilities 83,687 6,886 — 90,573 Net current liabilities 59,615 7,697 — 67,312 Total assets less current liabilities 163,262 37,930 (146 ) 201,046 Line items in the consolidated statement of financial position impacted by the adoption of IFRS 16: Lease liabilities — 40,790 62,666 103,456 Obligations under finance leases 62,666 — (62,666 ) — Provision for major overhauls 2,831 780 — 3,611 Deferred benefits and gains 906 — (146 ) 760 Deferred tax liabilities 676 (178 ) — 498 Total non-current 84,793 41,392 (146 ) 126,039 Net assets 78,469 (3,462 ) — 75,007 Reserves 52,990 (3,124 ) — 49,866 Total equity attributable to equity shareholders of the Company 65,257 (3,124 ) — 62,133 Non-controlling 13,212 (338 ) — 12,874 Total equity 78,469 (3,462 ) — 75,007 c. Impact on the financial result and cash flows of the Group After the initial recognition of right-of-use right-of-use In the cash flow statement, the Group as a lessee is required to split rentals paid under capitalized leases into their capital element and interest element (see Note 34(c)). The capital element is classified as financing cash outflows, similar to how leases previously classified as finance leases under IAS 17 were treated, rather than as operating cash outflows, as was the case for operating leases under IAS 17. Although total cash flows are unaffected, the adoption of IFRS 16 therefore results in a significant change in presentation of cash flows within the cash flow statement (see Note 34(d)). The following tables give an indication of the estimated impact of the adoption of the IFRS 16 on the Group’s financial result and cash flows for the year ended December 31, 2019, by adjusting the amounts reported under IFRS 16 in these consolidated financial statements to compute estimates of the hypothetical amounts that would have been recognized under IAS 17 if this superseded standard had continued to apply to 2019 instead of IFRS 16, and by comparing these hypothetical amounts for 2019 with the actual 2018 corresponding amounts which were prepared under IAS 17. 2019 2018 Amounts under IFRS 16 Add back: IFRS 16 Add back: Deduct: estimated leases as if Hypothetical for 2019 as if under IAS 17 Compared to (A) (B) (C) (D) (E=A+B+C-D) RMB million RMB million RMB million RMB million RMB million RMB million Financial result for the year ended December 31, 2019 impacted by the adoption of IFRS 16: Operating profit 10,838 7,580 — 9,491 8,927 8,819 Interest expense (5,845 ) 2,380 — — (3,465 ) (3,202 ) Exchange loss, net (1,477 ) 756 — — (721 ) (1,853 ) Share of associates’ results (178 ) — 216 — 38 263 Profit before income tax 4,055 10,716 216 9,491 5,496 4,364 Profit for the year 3,084 10,716 216 9,491 4,525 3,364 2019 2018 Amounts under IFRS 16 Estimated (Notes (i) & (ii)) Hypothetical IAS 17 Compared to (A) (B) (C=A+B) RMB million RMB million RMB million RMB million Line items in the consolidated cash flow statement for the year ended December 31, 2019 impacted by the adoption of IFRS 16: Cash generated from operating activities 39,728 (9,491 ) 30,237 21,174 Interest paid (7,014 ) 2,380 (4,634 ) (4,255 ) Net cash generated from operating activities 31,175 (7,111 ) 24,064 15,388 Capital element of lease rentals paid (Note (iii)) (17,784 ) 7,111 (10,673 ) (10,433 ) Net cash (used in)/generated from financing activities (21,833 ) 7,111 (14,722 ) 5,220 Notes: (i) The “estimated amounts related to operating leases” is an estimate of the amounts of the cash flows in 2019 that relate to leases which would have been classified as operating leases, if IAS 17 had still applied in 2019. This estimate assumes that there were no differences between rentals and cash flows and that all of the new leases entered into in 2019 would have been classified as operating leases under IAS 17, if IAS 17 had still applied in 2019. Any potential net tax effect is ignored. (ii) In this impact table these cash outflows are reclassified from financing to operating in order to compute hypothetical amounts of net cash generated from operating activities and net cash used in financing activities as if IAS 17 still applied. (iii) The capital element of finance leases under IAS 17 previously presented as “Repayment of principal under finance lease obligations” in 2018 consolidated cash flow statement. d. Investment properties Under IFRS 16, the Group is required to account for all leasehold properties as investment properties when these properties are held to earn rental income and/or for capital appreciation (“leasehold investment properties”). The adoption of IFRS 16 does not have a significant impact on the Group’s consolidated financial statements as the Group previously elected to apply IAS 40, Investment properties e. Lessor accounting In addition to leasing out the investment property referred to in paragraph d. above, the Group leases out a number of items of consumable spare parts and maintenance materials as the lessor of operating leases. The accounting policies applicable to the Group as a lessor remain substantially unchanged from those under IAS 17. Under IFRS 16, when the Group acts as an intermediate lessor in a sublease arrangement, the Group is required to classify the sublease as a finance lease or an operating lease by reference to the right-of-use (B) New IFRSs and amendments that are first effective for the year ended December 31, 2018 The IASB has issued a number of new IFRSs and amendments to IFRSs that are first effective for the year ended December 31, 2018 of the Group. Of these, the following developments are relevant to the Group’s financial statements: • IFRS 9, Financial instruments • IFRS 15, Revenue from contracts with customers • IFRIC 22, Foreign currency transactions and advance consideration (i) IFRS 9, Financial instruments IFRS 9 replaces IAS 39, Financial instruments: recognition and measurement non-financial The Group has applied IFRS 9 retrospectively to items that existed at January 1, 2018 in accordance with the transition requirements. The Group has recognized the cumulative effect of initial application as an adjustment to the opening equity at January 1, 2018. Therefore, comparative information continues to be reported under IAS 39. The following table summarizes the impact of transition to IFRS 9 on retained earnings and reserves and the related tax impact at January 1, 2018. Retained earnings RMB million Transferred from fair value reserve (recycling) relating to financial assets now measured at fair value through profit or loss (FVPL) 30 Remeasurement of other investments in equity securities now measured at FVPL at January 1, 2018 23 Related tax (5 ) Effect of the above changes on non-controlling (8 ) Net increase in retained earnings at January 1, 2018 40 Fair value reserve (recycling) Transferred to retained earnings relating to financial assets now measured at FVPL (30 ) Transferred to fair value reserve (non-recycling) (210 ) Net decrease in fair value reserve (recycling) at January 1, 2018 (240 ) Fair value reserve (non-recycling) Transfer and remeasurement effect of other investments in equity securities now measured at FVOCI at January 1, 2018 334 Related tax (31 ) Net increase in fair value reserve (non-recycling) 303 Non-controlling Remeasurement of other investments in equity securities now measured at FVPL in non-controlling 8 Further details of the nature and effect of the changes to previous accounting policies and the transition approach are set out below: (a) Classification of financial assets and financial liabilities IFRS 9 categories financial assets into three principal classification categories: measured at amortized cost, at FVOCI and at FVPL. These supersede IAS 39’s categories of held-to-maturity available-for-sale The following table shows the original measurement categories for each class of the Group’s financial assets under IAS 39 and reconciles the carrying amounts of those financial assets determined in accordance with IAS 39 to those determined in accordance with IFRS 9. IAS 39 carrying Reclassification Remeasurement IFRS 9 carrying RMB million RMB million RMB million RMB million Financial assets measured at FVOCI (non-recyclable) Other equity instrument investments — 637 124 761 Financial assets carried at FVPL Other non-current financial assets — 88 23 111 Financial assets classified as available-for-sale Available-for-sale 622 (622 ) — — Other investments in equity securities 103 (103 ) — — Note: (i) For an explanation of how the Group classifies and measures financial assets and recognizes related gains and losses under IFRS 9, see respective accounting policy notes in Notes 2(f), (g), (l)(i), (o) and (s). The measurement categories for all financial liabilities remain the same, except for financial guarantee contracts (see Note 2(l)(ii)). The carrying amounts for all financial liabilities (including financial guarantee contracts) at January 1, 2018 have not been impacted by the initial application of IFRS 9. The Group had not designated or de-designated (b) Credit losses IFRS 9 replaces the “incurred loss” model in IAS 39 with the “expected credit losses” (“ECL”) model. The ECL model requires an ongoing measurement of credit risk associated with a financial asset and therefore recognizes ECLs earlier than under the “incurred loss” accounting model in IAS 39. The Group applies the new ECL model to the following items: • financial assets measured at amortized cost (including cash and cash equivalents and trade and other receivables); • lease receivables; and • financial guarantee contracts issued (see Note 2(l)(ii)). For further details on the Group’s accounting policy for accounting for credit losses, see Notes 2(l)(i) and (ii). The adoption of ECL model under IFRS 9 has no material impact on the Group. (c) Hedge accounting The Group has elected to adopt the new general hedge accounting model in IFRS 9. Depending on the complexity of the hedge, this new accounting model allows a more qualitative approach to assessing hedge effectiveness compared to IAS 39 to be applied, and the assessment is always forward-looking. The adoption of IFRS 9 has not had a significant impact on the Group’s financial statements in this regard. (d) Transition Changes in accounting policies resulting from the adoption of IFRS 9 have been applied retrospectively, except as described below: • Information relating to comparative periods has not been restated. Differences in the carrying amounts of financial assets resulting from the adoption of IFRS 9 are recognized in retained earnings and reserves as at January 1, 2018. Accordingly, the information presented for 2017 continues to be reported under IAS 39 and thus may not be comparable with the current period. • The following assessments have been made on the basis of the facts and circumstances that existed at January 1, 2018 (the date of initial application of IFRS 9 by the Group): • the determination of the business model within which a financial asset is held; and • the designation of certain investments in equity instruments not held for trading to be classified as at FVOCI (non-recycling). • If, at the date of initial application, the assessment of whether there has been a significant increase in credit risk since initial recognition would have involved undue cost or effort, a lifetime ECL has been recognized for that financial instrument. • All hedging relationships designated under IAS 39 at December 31, 2017 met the criteria for hedge accounting under IFRS 9 at January 1, 2018 and are therefore regarded as continuing hedging relationships. Changes to hedge accounting policies have been applied prospectively. (ii) IFRS 15, Revenue from contracts with customers IFRS 15 establishes a comprehensive framework for recognizing revenue and some costs from contracts with customers. IFRS 15 replaces IAS 18, Revenue Construction contracts IFRS 15 also introduces additional qualitative and quantitative disclosure requirements which aim to enable users of the financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The Group has elected to use the cumulative effect transition method and has recognized the cumulative effect of initial application as an adjustment to the opening balance of equity at January 1, 2018. Therefore, comparative information has not been restated and continues to be reported under IAS 11 and IAS 18. As allowed by IFRS 15, the Group has applied the new requirements only to contracts that were not completed before January 1, 2018. The following table summarizes the impact of transition to IFRS 15 on total equity at January 1, 2018: RMB million Total equity Earlier recognition of ticket breakage revenue 682 Change in measurement of revenue under frequent flyer award programs 89 Related income tax (192 ) Total equity 579 Representing: Attributable to equity shareholders of the Company 526 Non-controlling 53 Further details of the nature and effect of the changes on previous accounting policies are set out below: (a) Timing of revenue recognition Previously, revenue arising from construction contracts and provision of services was recognized over time, whereas revenue from sale of goods was generally recognized at a point in time when the risks and rewards of ownership of the goods had passed to the customers. Under IFRS 15, revenue is recognized when the customer obtains control of the promised good or service in the contract. This may be at a single point in time or over time. IFRS 15 identifies the following three situations in which control of the promised good or service is regarded as being transferred over time: A. When the customer simultaneously receives and consumes the benefits provided by the entity’s performance, as the entity performs; B. When the entity’s performance creates or enhances an asset (for example work in progress) that the customer controls as the asset is created or enhanced; C. When the entity’s performance does not create an asset with an alternative use to the entity and the entity has an enforceable right to payment for performance completed to date. If the contract terms and the entity’s activities do not fall into any of these 3 situations, then under IFRS 15 the entity recognizes revenue for the sale of that good or service at a single point in time, being when control has passed. Transfer of risks and rewards of ownership is only one of the indicators that is considered in determining when the transfer of control occurs. The adoption of IFRS 15 does not have a significant impact on when the Group recognizes revenue, except for revenue arising from ticket breakage. Ticket breakage relates to a portion of contractual rights that the Group does not expect to be exercised. Previously, revenue arising from ticket breakage was recognized when the tickets expired. Whereas under IFRS 15, the Group recognizes, in proportion to the pattern of rights exercised by the customer, the breakage amount to which the Group expects to be entitled as revenue. If the Group does not expect to be entitled to a breakage amount, the Group recognizes the expected breakage amount as revenue when the likelihood of the customer exercising its remaining rights becomes remote. As a result of this change in accounting policy, the Group has made adjustments to opening balances as at January 1, 2018 which increased retained earnings and non-controlling (b) Measurement of revenue under frequent flyer award programs Previously, the amount received in relation to mileage earning flights is allocated, based on fair value, between the flight and mileage awarded under the Group’s frequent flyer award programs. The value attributed to the awarded mileage is deferred as a liability, and the remainder value is recognized as revenue in current period. Under IFRS 15, the Group allocates the transaction price to flight and mileage awarded on a relative stand-alone selling price basis. Therefore, the amount allocated to mileage awarded changed as compared to the fair value of mileage awarded measured under IAS 18, and in the meantime affecting the amount recognized as current period revenue and contract liabilities. As a result of this change in accounting policy, the Group has made adjustments to opening balances as at January 1, 2018 which increased retained earnings and non-controlling (c) Presentation (1) Ticket Breakage Revenue Previously, revenue arising from ticket breakage was presented separately as “Expired sales in advance of carriage” in “Other operating revenue”. As a result of the adoption of IFRS 15, ticket breakage revenue of RMB698 million for 2018 is included in the line item “Traffic revenue”. (2) Change Fees Previously, change fees was included in “Other operating revenue”. As a result of the adoption of IFRS 15, change fees of RMB655 million in 2018 which is not considered distinct from the transportation component is classified as “Traffic revenue”. (3) Contract Liabilities Previously, the amount received in relation to mileage awarded is deferred as a liability, within “Deferred revenue”. Under IFRS 15, a contract liability is recognized when a customer pays consideration, or is contractually required to pay consideration and the amount is already due, before the Group recognizes the related revenue. As a result of the adoption of IFRS15, the amount allocated to mileage awarded under the Group’s frequent flyer award programs is presented as “Contract liabilities” as at December 31, 2018 and the non-current non-current (d) Disclosure of the estimated impact on the amounts reported in respect of the year ended December 31, 2018 as a result of the adoption of IFRS 15 on January 1, 2018 The following tables summarize the estimated impact of adoption of IFRS 15 on the Group’s consolidated financial statements for the year ended December 31, 2018, by comparing the amounts reported under IFRS 15 in these consolidated financial statements with estimates of the hypothetical amounts that would have been recognized under IAS 18 and IAS 11 if those superseded standards had continued to apply to 2018 instead of IFRS 15. These tables show only those line items impacted by the adoption of IFRS 15: Amounts reported in accordance IFRS 15 Hypothetical amounts under and 11 Difference: Estimated impact of adoption of IFRS 15 on 2018 (A) (B) (A)-(B) RMB million RMB million RMB million Line items in the consolidated income statement for year ended December 31, 2018 impacted by the adoption of IFRS 15: Traffic revenue 138,064 136,641 1,423 Other operating revenue 5,559 6,855 (1,296 ) Total operating revenue 143,623 143,496 127 Profit before income tax 4,364 4,237 127 Income tax (1,000 ) (968 ) (32 ) Profit for the year 3,364 3,269 95 Profit attributable to: Equity shareholders of the Company 2,895 2,805 90 Non-controlling 469 464 5 Earnings per share Basic and diluted RMB0.27 RMB0.26 RMB0.01 Line items in the consolidated statement of comprehensive income for year ended December 31, 2018 impacted by the adoption of IFRS 15: Total comprehensive income for the year 3,619 3,524 95 Total comprehensive income attributable to: Equity shareholders of the Company 3,048 2,958 90 Non-controlling 571 566 5 Line items in the consolidated statement of financial position as at December 31, 2018 impacted by the adoption of IFRS 15: Deferred tax assets 1,566 1,570 (4 ) Non-current 222,877 222,881 (4 ) Contract liabilities (1,693 ) — (1,693 ) Sales in advance of carriage (8,594 ) (9,357 ) 763 Deferred revenue — (1,808 ) 1,808 Current income tax (369 ) (130 ) (239 ) Total current liabilities (83,687 ) (84,326 ) 639 Total assets less current liabilities 163,262 162,627 635 Deferred revenue — (2,057 ) 2,057 Other non-current (2,036 ) (18 ) (2,018 ) Total non-current (84,793 ) (84,832 ) 39 Reserves (52,990 ) (52,374 ) (616 ) Total equity attributable to equity shareholders of the Company (65,257 ) (64,641 ) (616 ) Non-controlling (13,212 ) (13,154 ) (58 ) Total equity (78,469 ) (77,795 ) (674 ) Line items in the reconciliation of profit before income tax to cash generated from operating activities for year ended December 31, 2018 (Note 34(b)) impacted by the adoption of IFRS 15: Profit before income tax 4,364 4,237 127 Increase in contract liabilities 232 — 232 Increase in sales in advance of carriage 1,441 1,504 (63 ) Increase in deferred revenue — 514 (514 ) Increase in other non-current 218 — 218 The significant differences arise as a result of the changes in accounting policies described above. (iii) IFRIC 22, Foreign currency transactions and advance consideration This interpretation provides guidance on determining “the date of the transaction” for the purpose of determining the exchange rate to use on initial recognition of the related asset, expense or income (or part of it) arising from a transaction in which an entity receives or pays advance consideration in a foreign currency. The Interpretation clarifies that “the date of the transaction” is the date on initial recognition of the non-monetary |
Subsidiaries and non-controlling interests | (c) Subsidiaries and non-controlling Subsidiaries are all entities over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. When assessing whether the Group has power, only substantive rights (held by the Group and other parties) are considered. An investment in a subsidiary is consolidated into the consolidated financial statements from the date that control commences until the date that control ceases. Intra-group transactions, balances and cash flows and any unrealized profits arising from intra-group transactions are eliminated in full in preparing the consolidated financial statements. Unrealized losses resulting from intra-group transactions are eliminated in the same way as unrealized gains but only to the extent that there is no evidence of impairment. Amounts reported by subsidiaries have been adjusted to conform with the Group’s accounting policies. Non-controlling non-controlling non-controlling Non-controlling Non-controlling non-controlling non-controlling Changes in the Group’s interests in a subsidiary that do not result in a loss of control are accounted for as equity transactions, whereby adjustments are made to the amounts of controlling and non-controlling When the Group loses control of a subsidiary, it is accounted for as a disposal of the entire interest in that subsidiary, with a resulting gain or loss being recognized in consolidated income statement. Any interest retained in that former subsidiary at the date when control is lost is recognized at fair value and this amount is regarded as the fair value on initial recognition of a financial asset (Note 2(f)) or, when appropriate, the cost on initial recognition of an investment in an associate or joint venture (Note 2(d)). In the Company’s statement of financial position, an investment in a subsidiary is stated at cost less impairment losses (Note 2(l)(iii)). The Group applies the acquisition method to account for business combinations. The consideration transferred in the acquisition is generally measured at fair value, as are the identifiable net assets acquired. Transaction costs are expensed as incurred. The consideration transferred does not include amounts related to the settlement of pre-existing Any contingent consideration is measured at fair value at the date of acquisition. If an obligation to pay contingent consideration that meets the definition of a financial instrument is classified as equity, then it is not remeasured and settlement is accounted for within equity. Otherwise, other contingent consideration is remeasured at fair value at each reporting date and subsequent changes in the fair value of the contingent consideration are recognized in profit or loss. |
Associates and joint arrangements | (d) Associates and joint arrangements An associate is an entity in which the Group or the Company has significant influence, but not control or joint control, over its management, including participation in the financial and operating policy decisions. The Group has applied IFRS 11, Joint Arrangements An investment in an associate or a joint venture is accounted for in the consolidated financial statements under the equity method and is initially recorded at cost, adjusted for any excess of the Group’s share of the acquisition-date fair values of the investee’s identifiable net assets over the cost of the investment (if any). Thereafter, the investment is adjusted for the post acquisition change in the Group’s share of the investee’s net assets and any impairment loss relating to the investment (Notes 2(e) and 2(l)(iii)). The Group’s share of the post-acquisition, post-tax post-tax When the Group’s share of losses exceeds its interest in the associate or the joint venture, the Group’s interest is reduced to nil and recognition of further losses is discontinued except to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the investee. For this purpose, the Group’s interest is the carrying amount of the investment under the equity method together with the Group’s long-term interests that in substance form part of the Group’s net investment in the associate or the joint venture. Unrealized profits and losses resulting from transactions between the Group and its associates and joint ventures are eliminated to the extent of the Group’s interest in the investee, except where unrealized losses provide evidence of an impairment of the asset transferred, in which case they are recognized immediately in the consolidated income statement. In the Company’s statement of financial position, investments in associates and joint ventures are stated at cost less impairment losses (Note 2(l)(iii)). |
Goodwill | (e) Goodwill Goodwill represents the excess of (i) the aggregate of the fair value of the consideration transferred, the amount of any non-controlling (ii) the net fair value of the acquiree’s identifiable assets and liabilities measured as at the acquisition date. When (ii) is greater than (i), then this excess is recognized immediately in the consolidated income statement as a gain on a bargain purchase. Goodwill is stated at cost less accumulated impairment losses. Goodwill arising on a business combination is allocated to each cash-generating unit, or groups of cash generating units, that is expected to benefit from the synergies of the combination and is tested annually for impairment (Note 2(l)(iii)). |
Other investments in debt and equity securities | (f) Other investments in debt and equity securities The Group’s policies for investments in debt and equity securities, other than investments in subsidiaries, associates and joint ventures, are set out below. Investments in debt and equity securities are recognized / derecognized on the date the Group commits to purchase / sell the investment. The investments are initially stated at fair value plus directly attributable transaction costs, except for those investments measured at fair value through profit or loss (FVPL) for which transaction costs are recognized directly in profit or loss. For an explanation of how the Group determines fair value of financial instruments, see Note 4(g)(i). These investments are subsequently accounted for as follows, depending on their classification. (A) Policy applicable from January 1, 2018 Investments other than equity investments Non-equity Equity investments An investment in equity securities is classified as FVPL unless the equity investment is not held for trading purposes and on initial recognition of the investment the Group makes an irrevocable election to designate the investment at FVOCI (non-recycling) instrument-by-instrument (non-recycling) (non-recycling) (B) Policy applicable prior to January 1, 2018 Equity investments Available-for-sale non-derivative held-to-maturity The Group’s other investments in equity securities represent investments in equity securities that do not have a quoted price in an active market for an identical instrument and whose fair value cannot otherwise be reliably measured. Accordingly, they are recognized in the consolidated statement of financial position at cost less impairment losses (Note 2(l)(i)(B)). Dividend income from equity securities is recognized in profit or loss in accordance with the policy set out in Note 2(y)(iv). The Group did not have other investments other than equity investments. |
Derivative financial instruments | (g) Derivative financial instruments Derivatives are initially recognized at fair value on the date a derivative contract is entered into and are subsequently remeasured at their fair value. The method of recognizing the resulting gain or loss depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the item being hedged. The Group documents at the inception of the transaction the relationship between hedging instruments and hedged items, as well as its risk management objectives and strategy for undertaking various hedging transactions. The Group also documents its assessment, both at hedge inception and on an ongoing basis, of whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flows of hedged items. Derivative financial instruments that do not qualify for hedge accounting are accounted for as trading instruments and any unrealized gains or losses, being changes in fair value of the derivatives, are recognized in the profit or loss immediately. Changes in the fair value of derivatives that are designated and qualify as fair value hedges and that are highly effective, are recorded in the profit or loss, along with any changes in the fair value of the hedged assets or liabilities that are attributable to the hedged risk. Derivative financial instruments that qualify for hedge accounting and which are designated as a specific hedge of the variability in cash flows of a highly probable forecast transaction, are accounted for as follows: (i) The effective portion of any gains or losses on remeasurement of the derivative financial instruments to fair value are recognized in other comprehensive income and accumulated separately in equity in the fair value reserve. The cumulative gain or loss on the derivative financial instruments recognized in other comprehensive income is reclassified from equity to profit or loss in the same period during which the hedged forecast cash flows affects profit or loss; and (ii) The ineffective portion of any gains or losses on remeasurement of the derivative financial instruments to fair value is recognized in the profit or loss immediately. When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge accounting, any cumulative gains or losses existing in equity at that time remains in equity and is recognized in the profit or loss when the committed or forecast transaction ultimately occurs. When a committed or forecast transaction is no longer expected to occur, the cumulative gains or losses that was recorded in equity is immediately transferred to the profit or loss. |
Investment properties | (h) Investment properties Investment properties are land held under a lease and / or buildings which are owned to earn rental income and/or for capital appreciation. Investment properties are stated at cost, less accumulated depreciation and impairment losses (Note 2(l)(iii)). Depreciation is calculated to write off the cost of items of investment properties, less their estimated residual value, if any, using the straight-line method over their estimated useful lives or lease term. Rental income from investment properties is accounted for as described in Note 2(y)(iii). |
Other property, plant and equipment | (i) Other property, plant and equipment Other property, plant and equipment are stated at cost less accumulated depreciation and impairment losses (Note 2(l)(iii)). The cost of self-constructed items of property, plant and equipment includes the cost of materials, direct labor, the initial estimate, where relevant, of the costs of dismantling and removing the items and restoring the site on which they are located, and an appropriate proportion of production overheads and borrowing costs (Note 2(ab)). Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized. All other repairs and maintenance are charged to the consolidated income statement during the financial period in which they are incurred. When each major aircraft overhaul is performed, its cost is recognized in the carrying amount of the component of aircraft and is depreciated over the appropriate maintenance cycles. Components related to overhaul cost, are depreciated on a straight-line basis over 3 to 12 years. Upon completion of an overhaul, any remaining carrying amount of the cost of the previous overhaul is derecognized and charged to the consolidated income statement. Gains or losses arising from the retirement or disposal of an item of property, plant and equipment are determined as the difference between the net disposal proceeds and the carrying amount of the item and are recognized in consolidated income statement on the date of retirement or disposal. Except for components related to overhaul costs, the depreciation of other property, plant and equipment is calculated to write off the cost of items, less their estimated residual value, if any, using the straight-line method over their estimated useful lives as follows: Buildings 5 to 35 years Owned aircraft 15 to 20 years Other flight equipment – Jet engines 15 to 20 years – Others, including rotables 3 to 15 years Machinery and equipment 4 to 10 years Where parts of an item of property, plant and equipment have different useful lives, the cost of the item is allocated on a reasonable basis between the parts and each part is depreciated separately. Both the useful life of an asset and its residual value, if any, are reviewed annually. |
Construction in progress | (j) Construction in progress Construction in progress represents advance payments for the acquisition of aircraft and flight equipment, office buildings, various infrastructure projects under construction and equipment pending for installation, and is stated at cost less impairment losses (Note 2(l)(iii)). Capitalization of these costs ceases and the construction in progress is transferred to property, plant and equipment when the asset is substantially ready for its intended use, notwithstanding any delay in the issue of the relevant commissioning certificates by the relevant PRC authorities. No depreciation is provided in respect of construction in progress. |
Leased assets | (k) Leased assets At inception of a contract, the Group assesses whether the contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Control is conveyed where the customer has both the right to direct the use of the identified asset and to obtain substantially all of the economic benefits from that use. (1) As a lessee (A) Policy applicable from January 1, 2019 For a contract that contains more than a lease, a lessee and lessor shall separate the contract and account for each lease component respectively. For a contract that contains lease and nonlease components, a lessee and lessor shall separate lease components from non-lease components. However, when the Group is a lessee of land use right and buildings, the Group has elected not to separate non-lease components from lease components, and instead, account for each lease component and any associated non-lease components as a single lease component. When separate lease components from non-lease components, a lessee shall allocate the consideration in the contract to each lease component on the basis of the relative stand-alone price of the lease component and the aggregate stand-alone price of the non-lease components. At the lease commencement date, the Group recognizes a right-of-use low-value low-value lease-by-lease Where the lease is capitalized, the lease liability is initially recognized at the present value of the lease payments payable over the lease term, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, using a relevant incremental borrowing rate. After initial recognition, the lease liability is measured at amortized cost and interest expense is calculated using the effective interest method. Variable lease payments that do not depend on an index or rate are not included in the measurement of the lease liability and hence are charged to profit or loss in the accounting period in which they are incurred. The right-of-use right-of-use right-of-use The lease liability is remeasured when there is a change in future lease payments arising from a change in an index or rate, or there is a change in the Group’s estimate of the amount expected to be payable under a residual value guarantee, or there is a change arising from the reassessment of whether the Group will be reasonably certain to exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use right-of-use For the measurement of component accounting for right-of-use assets and subsequent major overhaul performed, see Note 2(i). The Group presents right-of-use right-of-use The cost of acquiring land held under a lease is amortized on a straight-line basis over the respective periods of lease terms which range from 30 to 70 years. (B) Policy applicable prior to January 1, 2019 In the comparative periods prior to January 1, 2019, an arrangement, comprising a transaction or a series of transactions, is or contains a lease if the Group determines that the arrangement conveys a right to use a specific asset or assets for an agreed period of time in return for a payment or a series of payments. Such a determination is made based on an evaluation of the substance of the arrangement and is regardless of whether the arrangement takes the legal form of a lease. (i) Classification of assets leased to the Group Assets that are held by the Group under leases which transfer to the Group substantially all the risks and rewards of ownership are classified as being held under finance leases. Leases which do not transfer substantially all the risks and rewards of ownership to the Group are classified as operating leases, except for land held for own use under an operating lease, the fair value of which cannot be measured separately from the fair value of a building situated thereon at the inception of the lease, is accounted for as being held under a finance lease, unless the building is also clearly held under an operating lease. For these purposes, the inception of the lease is the time that the lease was first entered into by the Group, or taken over from the previous lessee. (ii) Assets acquired under finance leases Where the Group acquires the use of assets under finance leases, the amounts representing the fair value of the leased asset, or, if lower, the present value of the minimum lease payments, of such assets are included in property, plant and equipment and the corresponding liabilities, net of finance charges, are recorded as obligations under finance leases. Depreciation is provided at rates which write off the cost or valuation of the assets over the term of the relevant lease or, where it is likely the Group will obtain ownership of the asset, the life of the asset. Impairment losses are accounted for in accordance with the accounting policy as set out in Note 2(l)(iii). Finance charges implicit in the lease payments are charged to consolidated income statement over the period of the leases so as to produce an approximately constant periodic rate of charge on the remaining balance of the obligations for each accounting period. Contingent rentals are charged to consolidated income statement in the accounting period in which they are incurred. (iii) Operating lease charges Where the Group has the use of assets held under operating leases, payments made under the leases are charged to consolidated income statement in equal instalments over the accounting periods covered by the lease term, except where an alternative basis is more representative of the pattern of benefits to be derived from the leased asset. Lease incentives received are recognized in consolidated income statement as an integral part of the aggregate net lease payments made. Contingent rentals are charged to consolidated income statement in the accounting period in which they are incurred. The cost of acquiring land held under an operating lease is amortized on a straight-line basis over the respective periods of lease terms which range from 30 to 70 years. (iv) Sale and leaseback transactions Gains or losses on aircraft sale and leaseback transactions which result in finance leases are deferred and amortized over the terms of the related leases. Gains or losses on aircraft sale and leaseback transactions which result in operating leases are recognized immediately if the transactions are established at fair value. If the sale price is below fair value then the gain or loss is recognized immediately. However, if a loss is compensated for by future rentals at a below-market price, then the loss is deferred and amortized over the period that the aircraft is expected to be used. If the sale price is above fair value, then any gain is deferred and amortized over the useful life of the assets. (2) As a lessor When the Group acts as a lessor, it determines at lease inception whether each lease is a finance lease or an operating lease. A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to the ownership of an underlying assets to the lessee. If this is not the case, the lease is classified as an operating lease. When a contract contains lease and non-lease When the Group is an intermediate lessor, the sub-leases right-of-use sub-lease |
Credit losses and impairment of assets | (l) Credit losses and impairment of assets (i) Credit losses from financial instruments and lease receivables (A) Policy applicable from January 1, 2018 The Group recognizes a loss allowance for ECLs on the following items: • financial assets measured at amortized cost (including cash and cash equivalents and trade and other receivables); and • lease receivables. Financial assets measured at fair value, including equity securities measured at FVPL, equity securities designated at FVOCI (non-recycling) Measurement of ECLs ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all expected cash shortfalls (i.e. the difference between the cash flows due to the Group in accordance with the contract and the cash flows that the Group expects to receive). The expected cash shortfalls are discounted using the following discount rates where the effect of discounting is material: • fixed-rate financial assets, and trade and other receivables: effective interest rate determined at initial recognition or an approximation thereof; • variable-rate financial assets: current effective interest rate; • lease receivables: discount rate used in the measurement of the lease receivable. The maximum period considered when estimating ECLs is the maximum contractual period over which the Group is exposed to credit risk. In measuring ECLs, the Group takes into account reasonable and supportable information that is available without undue cost or effort. This includes information about past events, current conditions and forecasts of future economic conditions. ECLs are measured on either of the following bases: • 12-month • lifetime ECLs: these are losses that are expected to result from all possible default events over the expected lives of the items to which the ECL model applies. Loss allowances for trade receivables and lease receivables are always measured at an amount equal to lifetime ECLs. ECLs on these financial assets are estimated using a provision matrix based on the Group’s historical credit loss experience, adjusted for factors that are specific to the debtors and an assessment of both the current and forecast general economic conditions at the reporting date. For all other financial instruments, the Group recognizes a loss allowance equal to 12-month Significant increases in credit risk In assessing whether the credit risk of a financial instrument has increased significantly since initial recognition, the Group compares the risk of default occurring on the financial instrument assessed at the reporting date with that assessed at the date of initial recognition. In making this reassessment, the Group considers that a default event occurs when the borrower is unlikely to pay its credit obligations to the Group in full, without recourse by the Group to actions such as realizing security (if any is held). The Group considers both quantitative and qualitative information that is reasonable and supportable, including historical experience and forward-looking information that is available without undue cost or effort. In particular, the following information is taken into account when assessing whether credit risk has increased significantly since initial recognition: • failure to make payments of principal or interest on their contractually due dates ; • an actual or expected significant deterioration in a financial instrument’s external or internal credit rating (if available); • an actual or expected significant deterioration in the operating results of the debtor; and • existing or forecast changes in the technological, market, economic or legal environment that have a significant adverse effect on the debtor’s ability to meet its obligation to the Group. Depending on the nature of the financial instruments, the assessment of a significant increase in credit risk is performed on either an individual basis or a collective basis. When the assessment is performed on a collective basis, the financial instruments are grouped based on shared credit risk characteristics, such as past due status and credit risk ratings. The Group assumes that the credit risk on a financial asset has increased significantly if it is more than 30 days past due, unless the Group has reasonable and supportable information that is available without undue cost or effort, that demonstrates that the credit risk has not increased significantly since initial recognition even though the contractual payments are more than 30 days past due. ECLs are remeasured at each reporting date to reflect changes in the financial instrument’s credit risk since initial recognition. Any change in the ECL amount is recognized as an impairment gain or loss in consolidated income statement. The Group recognizes an impairment gain or loss for all financial instruments with a corresponding adjustment to their carrying amount through a loss allowance account. Basis of calculation of interest income Interest income recognized in accordance with Note 2(y)(v) is calculated based on the gross carrying amount of the financial asset unless the financial asset is credit-impaired, in which case interest income is calculated based on the amortized cost (i.e. the gross carrying amount less loss allowance) of the financial asset. At each reporting date, the Group assesses whether a financial asset is credit-impaired. A financial asset is credit-impaired when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred. Evidence that a financial asset is credit-impaired includes the following observable events: • significant financial difficulties of the debtor; • a breach of contract, such as a default or delinquency in interest or principal payments; • it becoming probable that the borrower will enter into bankruptcy or other financial reorganisation; • significant changes in the technological, market, economic or legal environment that have an adverse effect on the debtor; or • the disappearance of an active market for a security because of financial difficulties of the issuer. Write-off The gross carrying amount of a financial asset and lease receivable is written off (either partially or in full) to the extent that there is no realistic prospect of recovery. This is generally the case when the Group determines that the debtor does not have assets or sources of income that could generate sufficient cash flows to repay the amounts subject to the write-off. Subsequent recoveries of an asset that was previously written off are recognized as a reversal of impairment in consolidated income statement in the period in which the recovery occurs. (B) Policy applicable prior to January 1, 2018 Prior to January 1, 2018, an “incurred loss” model was used to measure impairment losses on financial assets not classified as at FVPL (e.g. trade and other receivables, and available-for-sale • significant financial difficulty of the debtor; • a breach of contract, such as a default or delinquency in interest or principal payments; • it becoming probable that the debtor would enter bankruptcy or other financial reorganization; • significant changes in the technological, market, economic or legal environment that had an adverse effect on the debtor; and • a significant or prolonged declined in the fair value of an investment in an equity instrument below its cost. If any such evidence existed, any impairment loss was determined and recognized as follows: • For unquoted equity securities carried at cost, the impairment loss is measured as the difference between the carrying amount of the financial asset and the estimated future cash flows, discounted at the current market rate of return for a similar financial asset where the effect of discounting was material. Impairment losses for equity securities carried at cost were not reversed. • For trade and other current receivables and other financial assets carried at amortized cost, the impairment loss was measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate (i.e. the effective interest rate computed at initial recognition of these assets), where the effect of discounting was material. This assessment was made collectively where these financial assets shared similar risk characteristics, such as similar past due status, and had not been individually assessed as impaired. Future cash flows for financial assets which were assessed for impairment collectively were based on historical loss experience for assets with credit risk characteristics similar to the collective group. If in a subsequent period the amount of an impairment loss decreased and the decrease could be linked objectively to an event occurring after the impairment loss was recognized, the impairment loss was reversed through profit or loss. A reversal of an impairment loss was only recognized to the extent that it did not result in the asset’s carrying amount exceeding that which would have been determined had no impairment loss been recognized in prior years. • For available-for-sale Impairment losses recognized in profit or loss in respect of available-for-sale Impairment losses were written off against the corresponding asset directly, except for impairment losses recognized in respect of trade and other receivables, whose recovery was considered doubtful but not remote. In this case, the impairment losses for doubtful debts were recorded using an allowance account. When the Group was satisfied that recovery was remote, the amount considered irrecoverable was written off against trade and other receivables directly and any amounts held in the allowance account relating to that debt were reversed. Subsequent recoveries of amounts previously charged to the allowance account were reversed against the allowance account. Other changes in the allowance account and subsequent recoveries of amounts previously written off directly were recognized in consolidated income statement. (ii) Credit losses from financial guarantees issued Financial guarantees are contracts that require the issuer (i.e. the guarantor) to make specified payments to reimburse the beneficiary of the guarantee (the “holder”) for a loss the holder incurs because a specified debtor fails to make payment when due in accordance with the terms of a debt instrument. After initial recognition at fair value, the Group, as an issuer of such a contract, subsequently measure it at the higher of: (i) the amount of the loss allowance and (ii) the amount initially recognized less, when appropriate, the cumulative amount of income recognized. (A) Policy applicable from January 1, 2018 The Group monitors the risk that the specified debtor will default on the contract and recognizes a provision when ECLs on the financial guarantees are determined to be higher than the amount recorded in respect of the guarantees (i.e. the amount initially recognized, less accumulated amortization). To determine ECLs, the Group considers changes in the risk of default of the specified debtor since the issuance of the guarantee. A 12-month As the Group is required to make payments only in the event of a default by the specified debtor in accordance with the terms of the instrument that is guaranteed, an ECL is estimated based on the expected payments to reimburse the holder for a credit loss that it incurs less any amount that the Group expects to receive from the holder of the guarantee, the specified debtor or any other party. The amount is then discounted using the current risk-free rate adjusted for risks specific to the cash flows. (B) Policy applicable prior to January 1, 2018 Prior to January 1, 2018, a provision would be recognized if and when it became probable that (i) the holder of the guarantee would call upon the Group under the guarantee and (ii) the amount of the claim on the Group was expected to exceed the amount carried in “trade and other payables” in respect of the guarantee, i.e. the amount initially recognized, less accumulated amortization. (iii) Impairment of other non-current Internal and external sources of information are reviewed at the end of each reporting period to identify indications that the following assets may be impaired or, except in the case of goodwill, an impairment loss previously recognized no longer exists or may have decreased: • Investment properties; • Other property, plant and equipment; • Right-of-use • Construction in progress; • Goodwill; • Investments in subsidiaries, associates and joint ventures in the Company’s statement of financial position. If any such indication exists, the asset’s recoverable amount is estimated. The recoverable amount of goodwill is estimated annually whether or not there is any indication of impairment. • Calculation of recoverable amount The recoverable amount of an asset is the higher of its fair value less costs of disposal and its value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax • Recognition of impairment losses An impairment loss is recognized in profit or loss if the carrying amount of an asset, or the cash-generating unit to which it belongs, exceeds its recoverable amount. Impairment losses recognized in respect of cash-generating units are allocated first to reduce the carrying amount of any goodwill allocated to the cash-generating unit (or group of units) and then, to reduce the carrying amount of the other assets in the unit (or group of units) on a pro rata basis, except that the carrying value of an asset will not be reduced below its individual fair value less costs of disposal (if measurable), or value in use (if determinable). • Reversals of impairment losses In respect of assets other than goodwill, an impairment loss is reversed if there has been a favorable change in the estimates used to determine the recoverable amount. An impairment loss in respect of goodwill is not reversed. A reversal of an impairment loss is limited to the asset’s carrying amount that would have been determined had no impairment loss been recognized in prior years. Reversals of impairment losses are credited to profit or loss in the year in which the reversals are recognized. |
Inventories | (m) Inventories Inventories, which consist primarily of consumable spare parts and supplies, are stated at cost less any applicable provision for obsolescence, and are charged to consolidated income statement when used in operations. Cost represents the average unit cost. Inventories held for sale or disposal are carried at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. When inventories are sold, the carrying amount of those inventories is recognized as an expense in the period in which the related revenue is recognized. The amount of any write-down of inventories to net realizable value and all losses of inventories are recognized as an expense in the period the write-down or loss occurs. The amount of any reversal of any write-down of inventories is recognized as a reduction in the amount of inventories recognized as an expense in the period in which the reversal occurs. |
Contract assets and contract liabilities | (n) Contract assets and contract liabilities A contract asset is recognized when the Group recognizes revenue (see Note 2(y)) before being unconditionally entitled to the consideration under the payment terms set out in the contract. Contract assets, if any, are assessed for ECL and are reclassified to receivables when the right to the consideration has become unconditional (see Note 2(o)). A contract liability is recognized when the customer pays non-refundable non-refundable For a single contract with the customer, either a net contract asset or a net contract liability is presented. For multiple contracts, contract assets and contract liabilities of unrelated contracts are not presented on a net basis. |
Trade and other receivables | (o) Trade and other receivables A receivable is recognized when the Group has an unconditional right to receive consideration. A right to receive consideration is unconditional if only the passage of time is required before payment of that consideration is due. If revenue has been recognized before the Group has an unconditional right to receive consideration, the amount is presented as a contract asset (see Note 2(n)). Receivables are stated at amortized cost using the effective interest method less allowance for credit losses (see Note 2(l)(i)). |
Interest-bearing borrowings | (p) Interest-bearing borrowings Interest-bearing borrowings are recognized initially at fair value less attributable transaction costs. Subsequent to initial recognition, interest-bearing borrowings are stated at amortized cost with any difference between the amount initially recognized and redemption value being recognized in consolidated income statement over the period of the borrowings, together with any interest and fees payable, using the effective interest method. |
Trade and other payables | (q) Trade and other payables Trade and other payables are initially recognized at fair value. Except for financial guarantee liabilities measured in accordance with (Note 2(l)(ii)), trade and other payables are subsequently stated at amortized cost unless the effect of discounting would be immaterial, in which case they are stated at cost. |
Non-current assets held for sale | (r) Non-current A non-current Immediately before classification as held for sale, the measurement of the non-current up-to-date non-current Impairment losses on initial classification as held for sale, and on subsequent remeasurement while held for sale, are recognized in profit or loss. As long as a non-current non-current |
Cash and cash equivalents | (s) Cash and cash equivalents Cash and cash equivalents comprise cash at bank and on hand, demand deposits with banks and other financial institutions, and short-term, highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value, having been generally within three months of maturity at acquisition. Bank overdrafts that are repayable on demand and form an integral part of the Group’s cash management are also included as a component of cash and cash equivalents for the purpose of the consolidated cash flow statement. Cash and cash equivalents are assessed for ECL in accordance with the policy set out in Note 2(l)(i). |
Provisions and contingent liabilities | (t) Provisions and contingent liabilities Provisions are recognized for liabilities of uncertain timing or amount when the Group or the Company has a legal or constructive obligation arising as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made. Where the time value of money is material, provisions are stated at the present value of the expenditures expected to settle the obligation. Where it is not probable that an outflow of economic benefits will be required, or the amount cannot be estimated reliably, the obligation is disclosed as a contingent liability, unless the probability of outflow of economic benefits is remote. Possible obligations, whose existence will only be confirmed by the occurrence or non-occurrence |
Dividend distribution | (u) Dividend distribution Dividend distribution to the Company’s shareholders is recognized as a liability in the Group’s consolidated financial statements in the period in which the dividends are approved by the Company’s shareholders. |
Share capital | (v) Share capital Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares are shown in equity as a deduction, net of tax, from the proceeds. |
Deferred benefits and gains | (w) Deferred benefits and gains |
Income tax | (x) Income tax Income tax for the year comprises current tax and movements in deferred tax assets and liabilities. Current tax and movements in deferred tax assets and liabilities are recognized in consolidated income statement except to the extent that they relate to items recognized in other comprehensive income or directly in equity, in which case the relevant amounts of tax are recognized in other comprehensive income or directly in equity, respectively. Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the end of the reporting year, and any adjustment to tax payable in respect of previous years. Deferred tax assets and liabilities arise from deductible and taxable temporary differences respectively, being the differences between the carrying amounts of assets and liabilities for financial reporting purposes and their tax bases. Deferred tax assets also arise from unused tax losses and unused tax credits. Apart from certain limited exceptions, all deferred tax liabilities, and all deferred tax assets to the extent that it is probable that future taxable profits will be available against which the asset can be utilized, are recognized. Future taxable profits that may support the recognition of deferred tax assets arising from deductible temporary differences include those that will arise from the reversal of existing taxable temporary differences, provided those differences relate to the same taxation authority and the same taxable entity, and are expected to reverse either in the same period as the expected reversal of the deductible temporary difference or in periods into which a tax loss arising from the deferred tax asset can be carried back or forward. The same criteria are adopted when determining whether existing taxable temporary differences support the recognition of deferred tax assets arising from unused tax losses and credits, that is, those differences are taken into account if they relate to the same taxation authority and the same taxable entity, and are expected to reverse in a period, or periods, in which the tax loss or credit can be utilized. The limited exception to the recognition of deferred tax assets and liabilities are those temporary differences arising from goodwill, the initial recognition of assets or liabilities that affect neither accounting nor taxable profit (provided they are not part of a business combination), and temporary differences relating to investments in subsidiaries, associates and joint ventures to the extent that, in the case of taxable differences, the Group controls the timing of the reversal and it is probable that the differences will not reverse in the foreseeable future, or in the case of deductible differences, unless it is probable that they will reverse in the future and it is probable that future taxable profit will be available against which the temporary difference can be utilized. The amount of deferred tax recognized is measured based on the expected manner of realization or settlement of the carrying amount of the assets and liabilities, using tax rates enacted or substantively enacted at the end of the reporting period and are expected to apply when related deferred tax asset is realized or the deferred tax liability is settled. Deferred tax assets and liabilities are not discounted. The carrying amount of a deferred tax asset is reviewed at the end of each reporting period and is reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow the related tax benefit to be utilized. Any such reduction is reversed to the extent that it becomes probable that sufficient taxable profits will be available. Current tax balances and deferred tax balances, and movements therein, are presented separately from each other and are not offset. Current tax assets are offset against current tax liabilities, and deferred tax assets against deferred tax liabilities, if the Company or the Group has the legally enforceable right to set off current tax assets against current tax liabilities and the following additional conditions are met: • in the case of current tax assets and liabilities, the Company or the Group intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously; or • in the case of deferred tax assets and liabilities, if they relate to income taxes levied by the same taxation authority on either: • the same taxable entity; or • different taxable entities, which, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered, intend to realize the current tax assets and settle the current tax liabilities on a net basis or realize and settle simultaneously. |
Revenue and other income | (y) Revenue and other income Income is classified by the Group as revenue when it arises from the sale of goods, the provision of services or the use by others of the Group’s assets under leases in the ordinary course of the Group’s business. Revenue is recognized when control over a product or service is transferred to the customer, or the lessee has the right to use the asset, at the amount of promised consideration to which the Group is expected to be entitled, excluding those amounts collected on behalf of third parties. Revenue excludes value added tax or other sales taxes and is after deduction of any trade discounts. Further details of the Group’s revenue and other income recognition policies are as follows: (i) Passenger, cargo and mail revenue Revenue is recognized when passenger, cargo and mail transportation services are provided. Unearned passenger revenue at the reporting date is included within “sales in advance of carriage” in the consolidated statement of financial position. Ticket breakage relates to a portion of contractual rights that the Group does not expect to be exercised. When the Group expects that the consideration received in advance of carriage is not refundable, and the customer is likely to give up a portion of the contractual rights, the Group recognizes, in proportion to the pattern of rights exercised by the customer, the breakage amount to which the Group expects to be entitled as revenue. If the Group does not expect to be entitled to a breakage amount, the Group recognizes the expected breakage amount as revenue when the likelihood of the customer exercising its remaining rights becomes remote. Revenue from airline-related business is recognized when the customers take possession of and accept the relevant services. In the comparative period prior to January 1, 2018, revenue from passenger, cargo and mail transportation, or airline-related business, was recognized when the transportation service or relevant services was provided. As a result of the change in accounting policy, adjustments have been made to opening balances as at January 1, 2018 (see Note 2(b)). (ii) Frequent flyer revenue The Group maintains two major frequent flyer award programs, namely, the China Southern Airlines Sky Pearl Club and the Xiamen Airlines’ Egret Card Frequent Flyer Program, which provide travel and other awards to members based on accumulated mileages. According to the frequent flyer award programs, the Group allocates the transaction price received in relation to mileage earning flights to flight and mileage awarded on a relative stand-alone selling price basis, and recognized the portion allocated to mileage awarded as “contract liabilities”. The mileage awarded to customers by third parties through means other than flights are initially recognized as “contract liabilities”. The Group estimates the standalone selling price of mileage awarded through mileage earning flights based on inputs and assumptions derived from historical data, including the estimates on the percentage of mileage awarded that are expected to be redeemed (“expected redemption rate”). Contract liabilities in relation to mileage awarded are subsequently recognized as revenue when the mileage is redeemed and the related benefits are received or used. Revenue on redeemed flights is recognized in accordance with the accounting policy set out in Note 2(y)(i), and revenue on redeemed goods or services is recognized when the customers take possession of the goods or services. In the comparative period prior to January 1, 2018, the amount received in relation to mileage earning flights was allocated, based on fair value, between the flight and mileage awarded under the Group’s frequent flyer award programs. As a result of the change in accounting policy, adjustments have been made to opening balances as at January 1, 2018 (see Note 2(b)). (iii) Rental income from operating leases Rental income receivable under operating leases is recognized in consolidated income statement in equal instalments over the periods covered by the lease term, except where an alternative basis is more representative of the pattern of benefits to be derived from the use of the leased asset. Lease incentives granted are recognized in profit or loss as an integral part of the aggregate net lease payments receivable. Contingent rentals are recognized as income in the accounting period in which they are earned. (iv) Dividends • Dividend income from unlisted investments is recognized when the shareholder’s right to receive payment is established. • Dividend income from listed investments is recognized when the share price of the investment goes ex-dividend. (v) Interest income Interest income is recognized as it accrues under the effective interest method using the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the gross carrying amount of the financial asset. For financial assets measured at amortized cost or FVOCI (recycling) that are not credit-impaired, the effective interest rate is applied to the gross carrying amount of the asset. For credit-impaired financial assets, the effective interest rate is applied to the amortized cost (i.e. gross carrying amount net of loss allowance) of the asset (see Note 2(l)(i)). (vi) Government grants Government grants are recognized in the consolidated statement of financial position initially when there is reasonable assurance that they will be received and that the Group will comply with the conditions attaching to them. Grants that compensate the Group for expenses incurred are recognized as income in consolidated income statement on a systematic basis in the same periods in which the expenses are incurred. Grants that compensate the Group for the cost of an asset are deducted from the carrying amount of the asset and consequently are effectively recognized in profit or loss over the useful life of the asset by way of reduced depreciation expense. |
Traffic commissions | (z) Traffic commissions Traffic commissions are expensed in the consolidated income statement when the transportation is provided and the related revenue is recognized. Traffic commissions for transportation not yet provided are recorded on the consolidated statement of financial position as prepaid expense. |
Maintenance and overhaul costs | (aa) Maintenance and overhaul costs In respect of owned and leased aircraft, components within the aircraft subject to replacement during major overhauls are recognized as Note 2(i) and Note 2(k). Other routine maintenance, repairs and overhauls are charged to consolidated income statement as and when incurred. In respect of certain leased aircraft, the Group has responsibility to fulfil certain return conditions under relevant lease agreements. In order to fulfil these return conditions, major overhauls are required to be conducted. Accordingly, except for the estimated costs of major overhauls recognized as right-of-use In the comparative periods prior to January 1, 2019, estimated costs of major overhaul for the aircraft held under operating lease were accrued and charged to the consolidated income statement over the estimated overhaul period. As a result of the change of accounting policy, adjustments have been made to opening balances as at January 1, 2019 (see Note 2(b)). |
Borrowing costs | (ab) Borrowing costs General and specific borrowing costs that are directly attributable to the acquisition, construction or production of an asset which necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of that asset. Other borrowing costs are expensed in the period in which they are incurred. The capitalization of borrowing costs as part of the cost of a qualifying asset commences when expenditure for the asset is being incurred, borrowing costs are being incurred and activities that are necessary to prepare the asset for its intended use or sale are in progress. Capitalization of borrowing costs is suspended or ceases when substantially all the activities necessary to prepare the qualifying asset for its intended use or sale are interrupted or complete. Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization. Borrowing costs include interest expense, finance charges in respect of lease liabilities and exchange differences arising from foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs. |
Employee benefits | (ac) Employee benefits (i) Short-term employee benefits and contributions to defined contribution retirement schemes Salaries, annual bonuses and contributions to defined contribution retirement schemes are accrued in the year in which the associated services are rendered by employees. Where payment or settlement is deferred and the effect would be material, these amounts are stated at their present values. (ii) Termination benefits Termination benefits are recognized when, and only when, the Group demonstrably commits itself to terminate employment or to provide benefits as a result of voluntary redundancy by having a detailed formal plan which is without realistic possibility of withdrawal. (iii) Retirement benefits According to IAS 19, Employee Benefits, an entity shall account not only for its legal obligation under the formal terms of a defined benefit plan, but also for any constructive obligation that arises from the entity’s informal practices where the entity has no realistic alternative but to pay the employee benefits. The Group believes the payments of welfare subsidy to those retirees who retired before the establishment of Pension Scheme are discretionary and have not created a legal or constructive obligation. Such payments are made according to the Group’s business performance, and can be suspended at any time. |
Translation of foreign currencies | (ad) Translation of foreign currencies Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (“the functional currency”). The consolidated financial statements are presented in Renminbi, which is the Company’s functional and the Group’s presentation currency. Foreign currencies transactions during the year are translated into Renminbi at the applicable rates of exchange quoted by the People’s Bank of China (“PBOC”) prevailing at the transaction dates. Monetary assets and liabilities denominated in foreign currencies are translated into Renminbi at the PBOC exchange rates prevailing at the end of the reporting period. Exchange gains and losses are recognized in profit or loss. Non-monetary non-monetary Non-monetary The results of foreign operations are translated into Renminbi at the PBOC exchange rates approximating the foreign exchange rates prevailing at the dates of the transactions. Statement of financial position items are translated into Renminbi at the PBOC exchange rates prevailing at the end of the reporting period. The resulting exchange differences are recognized in other comprehensive income and accumulated separately in equity in the exchange reserve. |
Related parties | (ae) Related parties (a) A person, or a close member of that person’s family, is related to the Group if that person: (i) has control or joint control over the Group; (ii) has significant influence over the Group; or (iii) is a member of the key management personnel of the Group or the Group’s parent. (b) An entity is related to the Group if any of the following conditions applies: (i) The entity and the Group are members of the same group (which means that each parent, subsidiary and fellow subsidiary is related to the others). (ii) One entity is an associate or joint venture of the other entity (or an associate or joint venture of a member of a group of which the other entity is a member). (iii) Both entities are joint ventures of the same third party. (iv) One entity is a joint venture of a third entity and the other entity is an associate of the third entity. (v) The entity is a post-employment benefit plan for the benefit of employees of either the Group or an entity related to the Group. (vi) The entity is controlled or jointly controlled by a person identified in (a). (vii) A person identified in (a)(i) has significant influence over the entity or is a member of the key management personnel of the entity (or of a parent of the entity). (viii) The entity, or any member of a group of which it is a part, provides key management personnel services to the Group or to the Group’s parent. Close members of the family of a person are those family members who may be expected to influence, or be influenced by, that person in their dealings with the entity. |
Segment reporting | (af) Segment reporting Operating segments, and the amounts of each segment item reported in the financial statements, are identified from the financial information provided regularly to the Group’s most senior executive management, who is the chief operating decision maker, for the purposes of allocating resources to, and assessing the performance of, the Group’s various lines of business and geographical locations. Individually material operating segments are not aggregated for financial reporting purposes unless the segments have similar economic characteristics and are similar in respect of the nature of products and services, the nature of production processes, the type or class of customers, the methods used to distribute the products or provide the services, and the nature of the regulatory environment. Operating segments which are not individually material may be aggregated if they share a majority of these criteria. |
Significant accounting polici_3
Significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Operating Lease Commitments | The following table reconciles the operating lease commitments as disclosed in Note 51(b) as at December 31, 2018 to the opening balance for lease liabilities recognized as at January 1, 2019: January 1, 2019 Operating lease commitments at December 31, 2018 75,729 Less: commitments relating to leases exempt from capitalization: - short-term leases, other leases with remaining lease term ending on or before December 31, 2019 and leases of low-value (924 ) - leases contracts entered before December 31, 2018 but the lease period start after January 1, 2019 (16,612 ) Less: total future interest expenses (10,037 ) Present value of remaining lease payments, discounted using the incremental borrowing rates at January 1, 2019 48,156 Add: finance lease liabilities recognized as at December 31, 2018 72,221 Total lease liabilities recognized at January 1, 2019 120,377 |
Summary of Impacts of the Adoption of IFRS 16 | The following table summarizes the impacts of the adoption of IFRS 16 on the Group’s consolidated statement of financial position: Adoption of IFRS 16 Carrying December 31, Remeasurement Reclassification Carrying January 1, RMB million RMB million RMB million RMB million Line items in the consolidated statement of financial position impacted by the adoption of IFRS 16: Property, plant and equipment, net 170,692 — (88,880 ) 81,812 Right-of-use — 45,437 91,914 137,351 Lease prepayments 2,970 — (2,970 ) — Interest in associates 3,181 (527 ) — 2,654 Deferred tax assets 1,566 717 — 2,283 Other assets 1,776 — (210 ) 1,566 Total non-current 222,877 45,627 (146 ) 268,358 Prepaid expenses and other current assets 3,659 (811 ) — 2,848 Total current assets 24,072 (811 ) — 23,261 Lease liabilities — 6,969 9,952 16,921 Current portion of obligations under finance leases 9,555 — (9,555 ) — Accrued expenses 15,682 (83 ) (397 ) 15,202 Total current liabilities 83,687 6,886 — 90,573 Net current liabilities 59,615 7,697 — 67,312 Total assets less current liabilities 163,262 37,930 (146 ) 201,046 Line items in the consolidated statement of financial position impacted by the adoption of IFRS 16: Lease liabilities — 40,790 62,666 103,456 Obligations under finance leases 62,666 — (62,666 ) — Provision for major overhauls 2,831 780 — 3,611 Deferred benefits and gains 906 — (146 ) 760 Deferred tax liabilities 676 (178 ) — 498 Total non-current 84,793 41,392 (146 ) 126,039 Net assets 78,469 (3,462 ) — 75,007 Reserves 52,990 (3,124 ) — 49,866 Total equity attributable to equity shareholders of the Company 65,257 (3,124 ) — 62,133 Non-controlling 13,212 (338 ) — 12,874 Total equity 78,469 (3,462 ) — 75,007 |
Summary of Estimated Impact on the Adoption of IFRS 16 on the Operating Results and the Financial Results Including Cash Flow | The following tables give an indication of the estimated impact of the adoption of the IFRS 16 on the Group’s financial result and cash flows for the year ended December 31, 2019, by adjusting the amounts reported under IFRS 16 in these consolidated financial statements to compute estimates of the hypothetical amounts that would have been recognized under IAS 17 if this superseded standard had continued to apply to 2019 instead of IFRS 16, and by comparing these hypothetical amounts for 2019 with the actual 2018 corresponding amounts which were prepared under IAS 17. 2019 2018 Amounts under IFRS 16 Add back: IFRS 16 Add back: Deduct: estimated leases as if Hypothetical for 2019 as if under IAS 17 Compared to (A) (B) (C) (D) (E=A+B+C-D) RMB million RMB million RMB million RMB million RMB million RMB million Financial result for the year ended December 31, 2019 impacted by the adoption of IFRS 16: Operating profit 10,838 7,580 — 9,491 8,927 8,819 Interest expense (5,845 ) 2,380 — — (3,465 ) (3,202 ) Exchange loss, net (1,477 ) 756 — — (721 ) (1,853 ) Share of associates’ results (178 ) — 216 — 38 263 Profit before income tax 4,055 10,716 216 9,491 5,496 4,364 Profit for the year 3,084 10,716 216 9,491 4,525 3,364 2019 2018 Amounts under IFRS 16 Estimated (Notes (i) & (ii)) Hypothetical IAS 17 Compared to (A) (B) (C=A+B) RMB million RMB million RMB million RMB million Line items in the consolidated cash flow statement for the year ended December 31, 2019 impacted by the adoption of IFRS 16: Cash generated from operating activities 39,728 (9,491 ) 30,237 21,174 Interest paid (7,014 ) 2,380 (4,634 ) (4,255 ) Net cash generated from operating activities 31,175 (7,111 ) 24,064 15,388 Capital element of lease rentals paid (Note (iii)) (17,784 ) 7,111 (10,673 ) (10,433 ) Net cash (used in)/generated from financing activities (21,833 ) 7,111 (14,722 ) 5,220 Notes: (i) The “estimated amounts related to operating leases” is an estimate of the amounts of the cash flows in 2019 that relate to leases which would have been classified as operating leases, if IAS 17 had still applied in 2019. This estimate assumes that there were no differences between rentals and cash flows and that all of the new leases entered into in 2019 would have been classified as operating leases under IAS 17, if IAS 17 had still applied in 2019. Any potential net tax effect is ignored. (ii) In this impact table these cash outflows are reclassified from financing to operating in order to compute hypothetical amounts of net cash generated from operating activities and net cash used in financing activities as if IAS 17 still applied. (iii) The capital element of finance leases under IAS 17 previously presented as “Repayment of principal under finance lease obligations” in 2018 consolidated cash flow statement. |
Summary of Impact of Transition to IFRS 9 on Retained Earnings and Reserves and Related Tax Impact | The following table summarizes the impact of transition to IFRS 9 on retained earnings and reserves and the related tax impact at January 1, 2018. Retained earnings RMB million Transferred from fair value reserve (recycling) relating to financial assets now measured at fair value through profit or loss (FVPL) 30 Remeasurement of other investments in equity securities now measured at FVPL at January 1, 2018 23 Related tax (5 ) Effect of the above changes on non-controlling (8 ) Net increase in retained earnings at January 1, 2018 40 Fair value reserve (recycling) Transferred to retained earnings relating to financial assets now measured at FVPL (30 ) Transferred to fair value reserve (non-recycling) (210 ) Net decrease in fair value reserve (recycling) at January 1, 2018 (240 ) Fair value reserve (non-recycling) Transfer and remeasurement effect of other investments in equity securities now measured at FVOCI at January 1, 2018 334 Related tax (31 ) Net increase in fair value reserve (non-recycling) 303 Non-controlling Remeasurement of other investments in equity securities now measured at FVPL in non-controlling 8 |
Summary of Original Measurement Categories For Each Class of Financial Assets Under IAS 39 and Reconciles Carrying Amounts of Financial Assets Determined in Accordance with IAS 39 to those Determined in Accordance with IFRS 9 | The following table shows the original measurement categories for each class of the Group’s financial assets under IAS 39 and reconciles the carrying amounts of those financial assets determined in accordance with IAS 39 to those determined in accordance with IFRS 9. IAS 39 carrying Reclassification Remeasurement IFRS 9 carrying RMB million RMB million RMB million RMB million Financial assets measured at FVOCI (non-recyclable) Other equity instrument investments — 637 124 761 Financial assets carried at FVPL Other non-current financial assets — 88 23 111 Financial assets classified as available-for-sale Available-for-sale 622 (622 ) — — Other investments in equity securities 103 (103 ) — — |
Summary of Impact of Transition to IFRS 15 on Total Equity | The following table summarizes the impact of transition to IFRS 15 on total equity at January 1, 2018: RMB million Total equity Earlier recognition of ticket breakage revenue 682 Change in measurement of revenue under frequent flyer award programs 89 Related income tax (192 ) Total equity 579 Representing: Attributable to equity shareholders of the Company 526 Non-controlling 53 |
Summary of Estimated Impact of Adoption of IFRS 15 | The following tables summarize the estimated impact of adoption of IFRS 15 on the Group’s consolidated financial statements for the year ended December 31, 2018, by comparing the amounts reported under IFRS 15 in these consolidated financial statements with estimates of the hypothetical amounts that would have been recognized under IAS 18 and IAS 11 if those superseded standards had continued to apply to 2018 instead of IFRS 15. These tables show only those line items impacted by the adoption of IFRS 15: Amounts reported in accordance IFRS 15 Hypothetical amounts under and 11 Difference: Estimated impact of adoption of IFRS 15 on 2018 (A) (B) (A)-(B) RMB million RMB million RMB million Line items in the consolidated income statement for year ended December 31, 2018 impacted by the adoption of IFRS 15: Traffic revenue 138,064 136,641 1,423 Other operating revenue 5,559 6,855 (1,296 ) Total operating revenue 143,623 143,496 127 Profit before income tax 4,364 4,237 127 Income tax (1,000 ) (968 ) (32 ) Profit for the year 3,364 3,269 95 Profit attributable to: Equity shareholders of the Company 2,895 2,805 90 Non-controlling 469 464 5 Earnings per share Basic and diluted RMB0.27 RMB0.26 RMB0.01 Line items in the consolidated statement of comprehensive income for year ended December 31, 2018 impacted by the adoption of IFRS 15: Total comprehensive income for the year 3,619 3,524 95 Total comprehensive income attributable to: Equity shareholders of the Company 3,048 2,958 90 Non-controlling 571 566 5 Line items in the consolidated statement of financial position as at December 31, 2018 impacted by the adoption of IFRS 15: Deferred tax assets 1,566 1,570 (4 ) Non-current 222,877 222,881 (4 ) Contract liabilities (1,693 ) — (1,693 ) Sales in advance of carriage (8,594 ) (9,357 ) 763 Deferred revenue — (1,808 ) 1,808 Current income tax (369 ) (130 ) (239 ) Total current liabilities (83,687 ) (84,326 ) 639 Total assets less current liabilities 163,262 162,627 635 Deferred revenue — (2,057 ) 2,057 Other non-current (2,036 ) (18 ) (2,018 ) Total non-current (84,793 ) (84,832 ) 39 Reserves (52,990 ) (52,374 ) (616 ) Total equity attributable to equity shareholders of the Company (65,257 ) (64,641 ) (616 ) Non-controlling (13,212 ) (13,154 ) (58 ) Total equity (78,469 ) (77,795 ) (674 ) Line items in the reconciliation of profit before income tax to cash generated from operating activities for year ended December 31, 2018 (Note 34(b)) impacted by the adoption of IFRS 15: Profit before income tax 4,364 4,237 127 Increase in contract liabilities 232 — 232 Increase in sales in advance of carriage 1,441 1,504 (63 ) Increase in deferred revenue — 514 (514 ) Increase in other non-current 218 — 218 |
Estimated Useful Lives for Depreciation Using Straight Line Method of Other Property, Plant and Equipment | Except for components related to overhaul costs, the depreciation of other property, plant and equipment is calculated to write off the cost of items, less their estimated residual value, if any, using the straight-line method over their estimated useful lives as follows: Buildings 5 to 35 years Owned aircraft 15 to 20 years Other flight equipment – Jet engines 15 to 20 years – Others, including rotables 3 to 15 years Machinery and equipment 4 to 10 years |
Financial risk management and_2
Financial risk management and fair values (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Remaining Contractual Maturities of Non-derivative Financial Liabilities Based on Contractual Undiscounted Cash Flows | The following tables show the remaining contractual maturities at the end of the reporting period of the Group’s non-derivative 2019 Contractual undiscounted cash outflow Within 1 year or on demand More than 1 year but 2 years More than 2 years but 5 years More than 5 years Total RMB million Carrying amount at December 31 RMB million Borrowings 38,304 4,251 8,720 2,007 53,282 51,180 Lease liabilities 25,404 23,860 63,003 44,814 157,081 134,074 Trade and other payables and accrued charges 21,300 — — — 21,300 21,300 85,008 28,111 71,723 46,821 231,663 206,554 2018 Contractual undiscounted cash outflow Carrying amount at December 31 Within 1 year or on demand More than 1 year but 2 years More than 2 years but 5 years More than 5 years Total (Note) Borrowings 40,121 8,272 6,335 2,188 56,916 54,417 Obligations under finance leases 12,062 11,738 36,765 22,200 82,765 72,221 Trade and other payables and accrued charges 21,292 — — — 21,292 21,292 73,475 20,010 43,100 24,388 160,973 147,930 |
Sensitivity Analysis of Significant Foreign Exchange Rates and Impact on Profit after Tax and Retained Profits | The following table indicates the instantaneous change in the Group’s profit after tax and retained profits that would arise if foreign exchange rates to which the Group has significant exposure at the end of the reporting period had changed at that date, assuming all other risk variables remained constant. The range of such sensitivity was considered to be reasonably possible at the end of the reporting date. 2019 Appreciation/(depreciation) of Renminbi against foreign currency Increase/(decrease) on profit after tax and retained profits RMB million USD 1 % 434 (1 %) (434 ) Euro 1 % 26 (1 %) (26 ) Japanese Yen 10 % 94 (10 %) (94 ) 2018 Appreciation/(depreciation) of Renminbi against foreign currency Increase/(decrease) on profit after tax and retained profits RMB million USD 1 % 195 (1 %) (195 ) Euro 1 % 28 (1 %) (28 ) Japanese Yen 10 % 103 (10 %) (103 ) 2017 Appreciation/(depreciation) of Renminbi against foreign currency Increase/(decrease) on profit after tax and retained profits RMB million USD 1 % 278 (1 %) (278 ) Euro 1 % 31 (1 %) (31 ) Japanese Yen 10 % 116 (10 %) (116 ) |
Disclosure of Exposure to Credit Risk and Expected Credit Losses for Air Ticket Receivables | The following table provides information about the Group’s exposure to credit risk and ECLs for air ticket receivables as at December 31, 2019 and 2018: December 31, 2019 Expected loss rate % Gross carrying amount RMB million Loss allowance RMB million Within 3 months 0.01 % 1,877 — More than 3 months but less than 1 year 50.00 % 11 6 More than 1 year but less than 2 years 100.00 % 7 7 More than 2 years but less than 3 years 100.00 % — — More than 3 years 100.00 % 16 16 1,911 29 December 31, 2018 Expected Gross Loss Within 3 months 0.01 % 1,940 — More than 3 months but less than 1 year 50.00 % 8 4 More than 1 year but less than 2 years 100.00 % 2 2 More than 2 years but less than 3 years 100.00 % 6 6 More than 3 years 100.00 % 16 16 1,972 28 |
Schedule of Movement in the Allowances for Loan Losses | Movement in the loss allowance account in respect of trade receivables during the year is as follows: 2019 2018 Balance at January 1 36 37 Amounts written off during the year (11 ) (2 ) Impairment losses written back (1 ) (4 ) Impairment losses recognized during the year 12 5 Balance at December 31 36 36 |
Carrying Value of Financial Instruments Measured at Fair Value on a Recurring Basis | Fair value measurements as at December 31, 2019 categorized into Note Fair value at RMB million Level 1 RMB million Level 2 RMB million Level 3 RMB million Recurring fair value measurement Financial assets: Other equity instrument investments: -Non-listed 26 188 — — 188 -Non-tradable 26 861 — — 861 Other non-current -Listed shares 26 74 74 — — -Non-listed 26 32 — — 32 Derivative financial assets: -Interest rate swaps 27 3 — 3 — -Cross currency swaps 27 187 — 187 — -Forward foreign exchange contracts 27 31 — 31 — Fair value measurements as at December 31, 2018 categorized into Note Fair value at RMB million Level 1 RMB million Level 2 RMB million Level 3 RMB million Recurring fair value measurement Financial assets: Other equity instrument investments: -Non-listed 26 234 — — 234 -Non-tradable 26 846 — — 846 Other non-current -Listed shares 26 71 71 — — -Non-listed 26 32 — — 32 Other financial assets 26 440 — 440 — Derivative financial assets: -Interest rate swaps 27 75 — 75 — Financial liabilities: Derivative financial liabilities: -Cross currency swaps 27 (44 ) — (44 ) — |
Quantitative Information of Valuation Technique and Significant Unobservable Inputs Used in Measuring Financial Instruments at Fair Value on a Recurring Basis | Information about Level 3 fair value measurements Valuation technique Significant unobservable inputs Range Other equity instruments investments -Non-listed shares Market comparable companies Discount for lack of marketability 22 % -Non-tradable shares Discounted cash flow Expected profit growth rate during the projection period 10-12 % Perpetual growth rate 3 % Perpetual dividend payout rate 80 % Expected dividend payout rate during the projection period 34 % Discount rate 9.90 % Other non-current -Non-listed shares (2) Discounted cash flow Expected profit growth rate during the projection period 11%-15 % Perpetual growth rate 1%-4 % Perpetual dividend payout rate 80 % Expected dividend payout rate during the projection period 27%-43 % Discount rate 9.90%-11.08 % (1) The fair value of non-listed (2) The fair value of these non-tradable non-listed (3) Any gain or loss arising from the remeasurement of the Group’s unlisted equity securities held for strategic purposes are recognized in the fair value reserve (non-recycling) (4) From January 1, 2018, any gain or loss arising from the remeasurement of the Group’s unlisted equity securities held for strategic purposes are recognized in the fair value reserve (non-recycling) |
Operating revenue (Tables)
Operating revenue (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Operation of Civil Aviation, Including the Provision of Passenger, Cargo, Mail Delivery, and Other Extended Transportation Services | (i) Disaggregation of revenue Disaggregation of revenue from contracts with customers by major services lines is as follow: 2019 2018 2017 Note RMB million RMB million RMB million (Note) Revenue from contracts with customers within the scope of IFRS 15: Disaggregated by service lines -Traffic revenue – Passenger 138,502 128,038 112,791 – Cargo and mail 9,615 10,026 9,082 -Commission income 2,952 2,619 2,781 -Hotel and tour operation income 712 676 547 -General aviation income 564 476 467 -Ground services income 409 429 429 -Expired sales in advance of carriage — — 396 -Air catering income 353 391 335 -Cargo handling income 359 254 241 -Others 654 536 553 154,120 143,445 127,622 Revenue from other sources: -Rental income 19(f) 202 178 184 154,322 143,623 127,806 Note: The Group has initially applied IFRS 15 at January 1, 2018, using the cumulative effect method. Under this method, the comparative information is not restated (see Note 2(b)). |
Segment reporting (Tables)
Segment reporting (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Statement [LineItems] | |
Information of Reportable Segments Provided to Chief Operating Decision Maker for Purposes of Resource Allocation and Assessment of Segment Performance | The segment results of the Group for the year ended December 31, 2019 are as follows: Airline Other Elimination Unallocated* Total RMB million RMB million RMB million RMB million RMB million Disaggregated by timing of revenue recognition Point in time 2,996 2,747 (2,401 ) — 3,342 Over time 149,799 2,785 (1,604 ) — 150,980 Revenue from external customers 152,591 1,731 — — 154,322 Inter-segment sales 204 3,801 (4,005 ) — — Reportable segment revenue 152,795 5,532 (4,005 ) — 154,322 Reportable segment profit before taxation 3,020 558 2 490 4,070 Reportable segment profit after taxation 2,224 446 2 423 3,095 Other segment information Income tax 796 112 — 67 975 Interest income 64 41 (31 ) — 74 Interest expense 5,833 43 (31 ) — 5,845 Depreciation and amortization 24,256 354 — — 24,610 Impairment loss 38 — — — 38 Credit loss 11 2 — — 13 Share of associates’ results — — — (178 ) (178 ) Share of joint ventures’ results — — — 365 365 Remeasurement of the originally held equity interests in a joint venture — — — 13 13 Change in fair value of financial assets / liabilities — — — 265 265 Non-current # 44,851 739 — — 45,590 The segment results of the Group for the year ended December 31, 2018 are as follows: Airline Other Elimination Unallocated* Total RMB million RMB million RMB million RMB million RMB million Disaggregated by timing of revenue recognition Point in time 2,532 1,975 (1,596 ) — 2,911 Over time 139,671 3,822 (2,781 ) — 140,712 Revenue from external customers 141,968 1,655 — — 143,623 Inter-segment sales 235 4,142 (4,377 ) — — Reportable segment revenue 142,203 5,797 (4,377 ) — 143,623 Reportable segment profit before taxation 3,448 604 (60 ) 495 4,487 Reportable segment profit after taxation 2,567 457 (60 ) 492 3,456 Other segment information Income tax 881 147 — 3 1,031 Interest income 107 18 — — 125 Interest expense 3,054 148 — — 3,202 Depreciation and amortization 14,084 282 — — 14,366 Impairment loss 12 — — — 12 Credit loss 2 1 — — 3 Share of associates’ results — — — 263 263 Share of joint ventures’ results — — — 200 200 Fair value movement of financial instruments — — — 12 12 Non-current # 37,155 406 — — 37,561 The segment results of the Group for the year ended December 31, 2017 are as follows: Airline Other Elimination Unallocated* Total RMB million RMB million RMB million RMB million RMB million Revenue from external customers 126,077 1,412 — — 127,489 Inter-segment sales 159 2,823 (2,982 ) — — Reportable segment revenue 126,236 4,235 (2,982 ) — 127,489 Reportable segment profit before taxation 7,708 529 — 561 8,798 Reportable segment profit after taxation 5,875 381 — 577 6,833 Other segment information Income tax 1,833 148 — (16 ) 1,965 Interest income 74 15 — — 89 Interest expense 2,724 23 — — 2,747 Depreciation and amortization 13,112 201 — — 13,313 Impairment loss 440 2 — — 442 Share of associates’ results — — — 420 420 Share of joint ventures’ results — — — 99 99 Remeasurement of the originally held equity interests in a joint venture — — — 88 88 Fair value movement of derivative financial instruments — — — (64 ) (64 ) Non-current # 30,776 1,828 — — 32,604 The segment assets and liabilities of the Group as at December 31, 2019 and December 31, 2018 are as follows: Airline Other Elimination Unallocated* Total RMB million RMB million RMB million RMB million RMB million As at December 31, 2019 Reportable segment assets 295,439 7,048 (3,662 ) 7,821 306,646 Reportable segment liabilities 230,738 2,458 (3,604 ) — 229,592 As at December 31, 2018 Reportable segment assets 234,755 6,479 (1,829 ) 7,250 246,655 Reportable segment liabilities 167,806 2,391 (1,769 ) 44 168,472 * Unallocated assets primarily include interest in associates and joint ventures, derivative financial assets and equity securities. Unallocated results primarily include the share of results of associates and joint ventures, dividend income from equity securities, and the fair value movement of financial instruments recognized through profit or loss. # The additions of non-current non-current |
Revenues by Geographical Segment | The Group’s revenue by geographical segment are analysed based on the following criteria: (1) Traffic revenue from services of both origin and destination within the PRC (excluding Hong Kong Special Administrative Region, Macau Special Administrative Region and Taiwan (“Hong Kong, Macau and Taiwan”)), is classified as domestic revenue. Traffic revenue with origin and destination among PRC, Hong Kong, Macau and Taiwan is classified as Hong Kong, Macau and Taiwan revenue; while that with origin from or destination to other overseas markets is classified as international revenue. (2) Revenue from commission income, hotel and tour operation, air catering services, ground services, cargo handling and other miscellaneous services are classified on the basis of where the services are performed. 2019 2018 2017 RMB million RMB million RMB million Domestic 110,112 103,287 92,986 International 41,651 37,773 32,117 Hong Kong, Macau and Taiwan 2,559 2,563 2,386 154,322 143,623 127,489 |
Reconciliation of Reportable Segment Revenue, Profit before Income Tax, Assets and Liabilities to Consolidated Figures | (c) Reconciliation of reportable segment revenue, profit before income tax, assets and liabilities to the consolidated figures as reported in the consolidated financial statements 2019 2018 2017 Note RMB RMB RMB Revenue Reportable segment revenue 6(a) 154,322 143,623 127,489 Reclassification of expired sales in advance of carriage (i) — — 396 Reclassification of sales tax — — (65 ) Adjustments arising from business combinations under common control (iv) — — (14 ) Consolidated revenue 154,322 143,623 127,806 2019 2018 2017 Note RMB RMB RMB Profit before income tax Reportable segment profit before taxation 6(a) 4,070 4,487 8,798 Capitalization of exchange difference of specific loans (ii) (16 ) (124 ) 47 Government grants (iii) 1 1 21 Adjustments arising from business combinations under common control (iv) — — 8 Consolidated profit before income tax 4,055 4,364 8,874 2019 2018 Note RMB million RMB million Assets Reportable segment assets 6(a) 306,646 246,655 Capitalization of exchange difference of specific loans (ii) 56 72 Government grants (iii) (6 ) (7 ) Adjustments arising from business combinations under common control (iv) 237 237 Others (5 ) (8 ) Consolidated total assets 306,928 246,949 2019 2018 RMB million RMB million Liabilities Reportable segment liabilities 6(a) 229,592 168,472 Others 7 8 Consolidated total liabilities 229,599 168,480 Notes: (i) Expired sales in advance of carriage are recorded under non-operating (ii) In accordance with the PRC GAAP, exchange difference arising on translation of specific loans and related interest denominated in a foreign currency is capitalized as part of the cost of qualifying assets. Under IFRSs, such exchange difference is recognized in income statement unless the exchange difference represents an adjustment to interest. (iii) In accordance with the PRC GAAP, assets related government grants (other than special funds) are deducted from the cost of the related assets. Special funds granted by the government and clearly defined in the approval documents as part of “capital reserve” are accounted for as increase in capital reserve. Under IFRSs, assets related government grants are deducted to the cost of the related assets. The difference is resulted from government grants received in previous years and are recognized in capital reserve under PRC GAAP. (iv) In accordance with the PRC GAAP, the Company accounts for the business combination under common control by applying the pooling-of-interest pooling-of-interest |
Flight operation expenses (Tabl
Flight operation expenses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Flight Operation Expenses | 2019 2018 2017 RMB million RMB million (Note) RMB million (Note) Jet fuel costs 42,814 42,922 31,895 Flight personnel payroll and welfare 12,709 11,467 10,574 Air catering expenses 3,975 3,734 3,379 Civil Aviation Development Fund 2,332 2,940 2,720 Aircraft operating lease charges 1,412 8,726 8,022 Training expenses 1,142 894 1,184 Aircraft insurance 192 163 — Others 5,990 5,370 5,204 70,566 76,216 62,978 Note: The Group has initially applied IFRS 16 at January 1, 2019 using the modified retrospective approach. Under this approach, comparative information is not restated. See Note 2(b). |
Maintenance expenses (Tables)
Maintenance expenses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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Summary of Maintenance Expenses | 2019 2018 2017 RMB million RMB million RMB million Aviation repair and maintenance charges 8,565 8,394 7,930 Staff payroll and welfare 2,976 2,736 2,620 Maintenance materials 1,516 1,574 1,327 13,057 12,704 11,877 |
Aircraft and transportation s_2
Aircraft and transportation service expenses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Aircraft and Transportation Service Expenses | 2019 2018 2017 RMB million RMB million RMB million Landing and navigation fees 17,658 15,980 14,910 Ground service and other charges 8,933 8,399 8,025 26,591 24,379 22,935 |
Promotion and selling expenses
Promotion and selling expenses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Promotion and Selling Expenses | 2019 2018 2017 RMB million RMB million RMB million Ticket office expenses 3,299 3,173 3,160 Sales commissions (Note) 2,214 2,027 1,935 Computer reservation services 959 892 835 Advertising and promotion 314 217 196 Others 969 727 755 7,755 7,036 6,881 Note: The Group applies the practical expedient in IFRS 15 and therefore expenses the portion of sales commissions which are regarded as directly related incremental costs of obtaining transportation contracts, as the amortization period is less than one year. |
General and administrative ex_2
General and administrative expenses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of General and Administrative Expenses | 2019 2018 2017 RMB million RMB million RMB million General corporate expenses 3,705 3,477 3,218 Auditors’ remuneration 20 18 14 - Audit services 18 15 14 - Non-audit 2 3 — Other taxes and levies 348 275 159 4,073 3,770 3,391 |
Depreciation and amortization (
Depreciation and amortization (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Depreciation and amortization | 2019 2018 2017 RMB million RMB million RMB million (Note) (Note) Depreciation of property, plant and equipment – Owned assets 9,029 8,193 8,080 – Finance leases — 5,776 4,883 Depreciation of right-of-use 15,263 — — Other amortization 328 339 199 24,620 14,308 13,162 |
Staff costs (Tables)
Staff costs (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Staff Costs | 2019 2018 2017 RMB million RMB million RMB million Salaries, wages and welfare 24,647 22,445 21,400 Defined contribution retirement scheme 2,794 2,387 2,114 Other retirement welfare subsidy 206 197 194 Early retirement benefits (Note 47) — 1 1 27,647 25,030 23,709 |
Other net income (Tables)
Other net income (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Other Net Income | 2019 2018 2017 RMB million RMB million RMB million Government grants (Note) 4,129 4,348 3,075 Gains on disposal of property, plant and equipment and construction in progress – Aircraft and spare engines and construction in progress 34 584 960 – Other property, plant and equipment 106 18 29 Penalty income 273 216 126 Others 582 272 258 5,124 5,438 4,448 Note: Government grants mainly represent (i) subsidies based on certain amount of tax paid granted by governments to the Group; (ii) subsidies granted by various local governments to encourage the Group to operate certain routes to cities where these governments are located. |
Interest expense (Tables)
Interest expense (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Interest Expense | 2019 2018 2017 RMB million RMB million RMB million (Note(i)) (Note(i)) Interest on borrowings 1,840 1,891 1,628 Interest relating to lease liabilities (Note 21) 5,302 — — Interest relating to obligations under finance leases — 2,409 2,009 Interest relating to provision for early retirement benefits — — 1 Total interest expense on financial liabilities not at fair value through profit or loss 7,142 4,300 3,638 Less: interest expense capitalized (Note(ii)) (1,279 ) (1,085 ) (908 ) 5,863 3,215 2,730 Interest rate swaps: cash flow hedge, reclassified from equity (Note 17&21) (18 ) (13 ) 17 5,845 3,202 2,747 Notes: (i) The Group has initially applied IFRS 16 at January 1, 2019 using the modified retrospective approach. Under this approach, comparative information is not restated. See Note 2(b). (ii) The weighted average interest rate used for interest capitalization was 3.51% per annum in 2019 (2018: 3.54%; 2017: 3.32%). |
Income tax (Tables)
Income tax (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Income Tax Expense in Consolidated Income Statement | (a) Income tax expense in the consolidated income statement 2019 2018 2017 RMB million RMB million RMB million PRC income tax –Provision for the year 1,611 962 2,280 –Under/(over)-provision in prior year 10 (27 ) (2 ) 1,621 935 2,278 Deferred tax (Note 29) Origination and reversal of temporary differences (650 ) 65 (302 ) Income tax expense 971 1,000 1,976 |
Reconciliation between Actual Tax Expense and Calculated Tax Based on Accounting Profit at Applicable Tax Rates | (b) Reconciliation between actual tax expense and calculated tax based on accounting profit at applicable tax rates 2019 2018 2017 RMB million RMB million RMB million Profit before income tax 4,055 4,364 8,874 Notional tax on profit before taxation, calculated at the rates applicable to profits in the tax jurisdictions concerned (Note 16(a)) 964 1,089 2,179 Adjustments for tax effect of: Non-deductible 18 23 9 Share of results of associates and joint ventures and other non-taxable (50 ) (121 ) (137 ) Taxable temporary differences for which no deferred tax liabilities were recognized — — (27 ) Unused tax losses and deductible temporary differences for which no deferred tax assets were recognized 62 73 26 Utilization of unused tax losses and deductible temporary differences for which no deferred tax assets were recognized in prior years (3 ) (17 ) (72 ) Under/(over)-provision in prior year 10 (27 ) (2 ) Super deduction of research and development expenses (30 ) (20 ) — Tax expense 971 1,000 1,976 |
Other comprehensive income (Tab
Other comprehensive income (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Other Comprehensive Income | 2019 2018 2017 RMB million RMB million RMB million (Note) Cash flow hedges: Effective portion of changes in fair value of hedging instruments recognized during the year (54 ) 42 8 Reclassification adjustments for amounts transferred to profit or loss: - interest expense (Note 15) (18 ) (13 ) 17 Net deferred tax credited / (debited) to other comprehensive income 17 (7 ) (6 ) (55 ) 22 19 Equity investments measured at FVOCI: Changes in fair value recognized during the year (31 ) 319 — Net deferred tax credited / (debited) to other comprehensive income 7 (80 ) — (24 ) 239 — Share of other comprehensive income of an associate Will not be reclassified to profit or loss 3 (4 ) — May be reclassified subsequently to profit or loss — — 2 3 (4 ) 2 Differences resulting from the translation of foreign currency financial statements (7 ) (2 ) — Available-for-sale Changes in fair value recognized during the year — — 123 Net deferred tax debited to other comprehensive income — — (31 ) — — 92 |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Earnings per Share | 2019 2018 2017 million million million Issued ordinary shares at January 1 12,267 10,088 9,818 Effect of issuance of A shares — 450 — Effect of issuance of H shares — 181 106 Weighted average number of ordinary shares at December 31 12,267 10,719 9,924 |
Property, plant and equipment_2
Property, plant and equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Property, plant and equipment, net | Aircraft Investment properties Buildings Owned Acquired Other flight Machinery, Total RMB million RMB RMB RMB RMB RMB million RMB Cost: At January 1, 2018 794 12,611 105,974 99,367 21,906 6,629 247,281 Acquisitions through business combinations — 51 — — 12 34 97 Additions — 48 3,644 7,049 1,250 424 12,415 Transfer from construction in progress — 489 4,792 8,038 401 414 14,134 Reclassification on change of holding intention 19 (19 ) — — — — — Reclassification on exercise of purchase option — — 3,940 (3,940 ) — — — Transfer to assets held for sale — — (1,804 ) — (106 ) — (1,910 ) Disposals — (26 ) (7,784 ) (154 ) (774 ) (252 ) (8,990 ) At December 31, 2018 813 13,154 108,762 110,360 22,689 7,249 263,027 Impact on initial application of IFRS 16 (Note 2(b)) — — — (110,360 ) (81 ) — (110,441 ) At January 1, 2019 813 13,154 108,762 — 22,608 7,249 152,586 Acquisitions through business combinations — — — — — 18 18 Additions — 181 3,034 — 2,380 860 6,455 Transferred from construction in progress (Note 20) — 2,515 871 — 200 456 4,042 Reclassification on change of holding intention: - transferred to other property, plant and equipment, net (327 ) 327 — — — — — - transferred to right-of-use (16 ) — — — — — (16 ) Transferred from right-of-use — — 2,641 — — — 2,641 Disposals — (131 ) (2,032 ) — (803 ) (330 ) (3,296 ) At December 31, 2019 470 16,046 113,276 — 24,385 8,253 162,430 Accumulated depreciation and impairment losses: At January 1, 2018 270 3,965 50,995 17,011 11,678 4,436 88,355 Depreciation charge for the year 29 413 5,667 5,776 1,462 622 13,969 Reclassification on change of holding intention 15 (15 ) — — — — — Reclassification on exercise of purchase options — — 1,072 (1,072 ) — — — Transferred to assets held for sale — — (1,582 ) — (104 ) — (1,686 ) Disposal — (10 ) (6,912 ) (154 ) (664 ) (240 ) (7,980 ) Impairment losses written off on disposals — — (322 ) — (1 ) — (323 ) At December 31, 2018 314 4,353 48,918 21,561 12,371 4,818 92,335 Impact on initial application of IFRS 16 (Note 2(b)) — — — (21,561 ) — — (21,561 ) At January 1, 2019 314 4,353 48,918 — 12,371 4,818 70,774 Depreciation charge for the year 29 444 6,390 — 1,483 683 9,029 Reclassification on change of holding intention: - transferred to other property, plant and equipment, net (172 ) 172 — — — — — - transferred to right-of-use (5 ) — — — — — (5 ) Transferred from right-of-use — — 874 — — — 874 Disposals — (52 ) (1,993 ) — (698 ) (238 ) (2,981 ) Provision for impairment losses (Note 19(d)) — — 18 — — — 18 Impairment losses written off on disposals (Note 19(c)) — — (30 ) — (37 ) — (67 ) At December 31, 2019 166 4,917 54,177 — 13,119 5,263 77,642 Net book value: At December 31, 2019 304 11,129 59,099 — 11,266 2,990 84,788 At December 31, 2018 499 8,801 59,844 88,799 10,318 2,431 170,692 (a) As at December 31, 2019, the accumulated impairment provision of aircraft and flight equipment of the Group is RMB985 million (December 31, 2018: RMB1,034 million). (b) As at December 31, 2019, certain aircraft of the Group with an aggregate carrying value of approximately RMB339 million (December 31, 2018: RMB373 million) were mortgaged under certain loans (Note 36(a)(i)). (c) For the year ended December 31, 2019, certain aircraft and other flight equipment were disposed, against which impairment provision had been provided in previous years and the impairment provision of RMB30 million for these aircraft and RMB37 million for the other flight equipment was written off respectively. (d) As at December 31, 2019, the Group reviewed the recoverable amounts of the aircraft and related assets and made an additional impairment provision of RMB18 million for its aircraft. The estimates of recoverable amounts were based on the greater of the assets’ fair value less costs of disposal and the value in use. The fair value on which the recoverable amount is based is categorized as a level 3 measurement and it was determined by reference to the recent observable market prices for the aircraft fleet and flight equipment. In cases when value in use are based, the pre-tax discount rate used in the estimate is 9.00%. (e) As at December 31, 2019 and up to the date of approval of these financial statements, the Group is in the process of applying for the property title certificates in respect of the properties located in Guangdong, Guangxi, Guizhou, Xiamen, Heilongjiang, Jilin, Beijing, Henan, Xinjiang, Hainan, Shanghai, Hubei, Chongqing, Liaoning and Chengdu, in which the Group has interests and for which such certificates have not been granted. As at December 31, 2019, carrying value of such properties of the Group amounted to RMB7,106 million (December 31, 2018: RMB5,289 million). The Directors of the Company are of the opinion that the use of and the conduct of operating activities at the properties referred to above are not affected by the fact that the Group has not yet obtained the relevant property title certificates. (f) The Group leased out investment properties and facilities under operating leases. The leases typically run for an initial period of one to ten years, with an option to renew the leases after that date at which time all terms are renegotiated. None of the leases includes contingent rentals. In this connection, rental income totalling RMB202 million (2018: RMB178 million; 2017: RMB184 million) was recognized by the Group during the year in respect of the leases. Directors estimated the fair value of these investment properties approximate the carrying amount. |
Future Minimum Lease Income under Non-cancellable Operating Leases | The Group’s total future minimum lease income under non-cancellable 2019 2018 RMB million RMB million Within 1 year 38 55 After 1 year but within 5 years 74 39 After 5 years 36 7 148 101 |
Construction in progress (Table
Construction in progress (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Construction in Progress | Advance payment for aircraft and flight Others Total RMB million RMB million RMB million At January 1, 2018 27,543 2,690 30,233 Additions 19,973 4,486 24,459 Transferred to property, plant and equipment (13,231 ) (903 ) (14,134 ) Transferred to others — (155 ) (155 ) Transferred to lease prepayments — (7 ) (7 ) Disposals (2,605 ) — (2,605 ) At December 31, 2018 31,680 6,111 37,791 At January 1, 2019 31,680 6,111 37,791 Additions 10,512 5,780 16,292 Transferred to property, plant and equipment (Note 19) (1,071 ) (2,971 ) (4,042 ) Transferred to right-of-use (10,202 ) (313 ) (10,515 ) Transferred to others — (304 ) (304 ) At December 31, 2019 30,919 8,303 39,222 |
Right-of use assets (Tables)
Right-of use assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of right to use of assets | Aircraft Land use Buildings Others Total RMB RMB RMB RMB RMB (Note 1) Cost: At January 1, 2019 187,991 3,671 1,300 138 193,100 Additions 20,609 225 1,490 51 22,375 Transfer from construction in progress (Note 20) 10,202 110 — 203 10,515 Reclassification with investment properties (Note 19) — 16 — — 16 Transferred to property, plant and equipment on exercise of purchase option (Note 19) (2,641 ) — — — (2,641 ) Disposals (780 ) — — — (780 ) At December 31, 2019 215,381 4,022 2,790 392 222,585 Accumulated amortization: At January 1, 2019 55,048 701 — — 55,749 Amortization charge for the year 14,485 107 637 34 15,263 Reclassification with investment properties (Note 19) — 5 — — 5 Transferred to property, plant and equipment on exercise of purchase option (Note 19) (874 ) — — — (874 ) Disposals (769 ) — — — (769 ) At December 31, 2019 67,890 813 637 34 69,374 Net book value: At December 31, 2019 147,491 3,209 2,153 358 153,211 At January 1, 2019 132,943 2,970 1,300 138 137,351 Note 1: The Group was formally granted the rights to use certain parcels of land by the relevant PRC authorities for periods of 30 to 70 years, which expire between 2020 and 2073. |
Summary of analysis of expense items in relation to leases recognised in profit or loss | In addition to the amortization charged, the analysis of expense items in relation to leases recognized in profit or loss is as follows: 2019 2018 2017 RMB million RMB million RMB million (Note) (Note) Interest on lease liabilities (Note 15) 5,302 2,409 2,009 Interest rate swaps: cash flow hedge, reclassified from equity (Note 15) (18 ) (13 ) 17 Expense relating to leases with remaining lease term ending on or before December 31, 2019 2,092 — — Expense relating to leases of variable lease payments not included in the measurement of lease liabilities 81 — — Total minimum lease payments for leases previously classified as operating leases under IAS 17 — 9,920 8,996 Note: The Group has initially applied IFRS 16 using the modified retrospective approach and adjusted the opening balances at January 1, 2019 to recognize right-of-use right-of-use right-of-use right-of-use |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Goodwill | 2019 2018 RMB million RMB million Cost and carrying amount: 237 237 |
Goodwill Allocated Cash-Generating Units | Impairment tests for cash-generating units containing goodwill 2019 2018 RMB million RMB million Southern Airlines Group Import and Export Trading Company (“SAIETC”) 182 182 Xiamen Airlines Culture and Media Co., Ltd. (“XACM”) 55 55 Total 237 237 |
Subsidiaries (Tables)
Subsidiaries (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Statement [LineItems] | |
List of Particular Subsidiaries Principally Affect Results, Assets or Liabilities | All the subsidiaries of the Company are unlisted. The following list contains only the particulars of subsidiaries which principally affect the results, assets or liabilities of the Group. Name of company Place of establishment/ operation Registered capital Proportion of ownership interest held by the Principal activity China Southern Airlines Henan Airlines Company Limited (i) PRC RMB 6,000,000,000 60 % Airline transportation Xiamen Airlines (i)&(viii) PRC RMB 8,000,000,000 55 % Airline transportation Chongqing Airlines Company Limited (i) PRC RMB 1,200,000,000 60 % Airline transportation Shantou Airlines Company Limited (i) PRC RMB 280,000,000 60 % Airline transportation Zhuhai Airlines Company Limited (i) PRC RMB 250,000,000 60 % Airline transportation Guizhou Airlines Company Limited (i) PRC RMB 1,220,000,000 60 % Airline transportation Guangzhou Nanland Air Catering Company Limited (ii) PRC RMB 240,000,000 70.50 % Air catering Guangzhou Baiyun International Logistic Company Limited (i) PRC RMB 50,000,000 61 % Logistics operations Beijing Southern Airlines Ground Services Company Limited (i) PRC RMB 18,000,000 100 % Airport ground services Nan Lung International Freight Limited Hong Kong HKD 3,270,000 51 % Freight services Southern Airlines General Aviation Company Limited (i) PRC RMB 1,000,000,000 100 % General aviation SAIETC (i) PRC RMB 15,000,000 100 % Import and export agent services Zhuhai Xiang Yi Aviation Technology Company Limited (“Zhuhai Xiang Yi”) (i)&(vi) PRC RMB 469,848,000 100 % Flight simulation services China Southern Airlines Xiongan Airlines Company Limited (i) PRC RMB 600,000,000 100 % Airline transportation Flying College (v) Australia AUD 39,651,627 84.30 % Pilot training services Southern Airlines Freight and Logistics (Guangzhou) Co.,Ltd (i) PRC RMB 1,000,000,000 100 % Logistics operations Shenyang Northern Aircraft Maintenance Co., Ltd. (“Shenyang Aircraft Maintenance”) (i) PRC RMB 31,520,545 100 % Aircraft repair and maintenance services Guangdong Southern Airline Pearl Aviation Services Company Limited (“Pearl Aviation Services”) (i) & (iv) PRC RMB 5,000,000 100 % Hotel management services (i) These subsidiaries are PRC limited liability companies. (ii) This subsidiary is a sino-foreign equity joint venture company established in the PRC. (iii) Shenyang Aircraft Maintenance |
Financial Information Related to Acquisition | The above acquisitions had the following effect on the Group’s assets and liabilities on acquisition date: Recognized values on RMB million Non-current 153 Current assets 77 Current liabilities (155 ) Total net identifiable assets 75 Analysis of the net inflow of cash and cash equivalents in respect of the acquisitions: Cash consideration paid (63 ) Cash and cash equivalents acquired 69 Net cash inflow 6 |
Shenyang Northern Aircraft Maintenance Co Ltd [member] | |
Statement [LineItems] | |
Financial Information Related to Acquisition | The above acquisitions had the following effect on the Group’s assets and liabilities on acquisition date: Recognized values on RMB million Non-current 31 Current assets 41 Non-current (6 ) Current liabilities (3 ) Total net identifiable assets 63 Analysis of the net inflow of cash and cash equivalents in respect of the acquisitions: Cash consideration paid (14 ) Cash and cash equivalents acquired 26 Net cash inflow 12 |
Guangdong Southern Airline Pearl Aviation Services Company Limited [member] | |
Statement [LineItems] | |
Financial Information Related to Acquisition | The above acquisitions had the following effect on the Group’s assets and liabilities on acquisition date: Recognized values on RMB million Non-current 19 Current assets 252 Current liabilities (257 ) Total net identifiable assets 14 Analysis of the net inflow of cash and cash equivalents in respect of the acquisitions: Cash consideration paid (9 ) Cash and cash equivalents acquired 173 Net cash inflow 164 |
Xiamen Airlines Company Limited [member] | |
Statement [LineItems] | |
Financial Information Related to Subsidiary with Material non-controlling Interests | Set out below are the summarized financial information for Xiamen Airlines. 2019 2018 RMB million RMB million (Note) Non-controlling 45 % 45 % Current assets 3,010 4,029 Non-current 53,855 43,234 Current liabilities (15,494 ) (14,397 ) Non-current (22,233 ) (13,678 ) Net assets 19,138 19,188 Carrying amount of non-controlling 9,003 9,035 Revenue 32,612 30,225 Profit for the year 784 915 Total comprehensive income 798 1,111 Profit allocated to non-controlling 350 393 Dividend paid to non-controlling 45 68 Net cash generated from operating activities 8,259 3,559 Net cash (used in) / generated from investing activities (1,990 ) 889 Net cash used in financing activities (6,097 ) (4,363 ) |
Zhuhai Xiang Yi Aviation Technology Company Limited [member] | |
Statement [LineItems] | |
Financial Information Related to Acquisition | Analysis of the net outflow of cash and cash equivalents in respect of the acquisitions: Recognized values on RMB million Property, plant and equipment, net 1,556 Lease prepayments 115 Trade and other receivables 70 Cash and cash equivalents 41 Other assets 32 Trade and other payables (34 ) Borrowings (342 ) Deferred tax liabilities (30 ) Other liabilities (24 ) Total net identifiable assets 1,384 Cash consideration paid (678 ) Cash and cash equivalents acquired 41 Net cash outflow (637 ) Effect of the acquisition on the Group’s consolidated income statements Fair value of the originally held 51% equity interests 706 Less: carrying value of the originally held 51% equity interests (597 ) Remeasurement of the originally held 51% equity interests 109 |
Southern Airlines Culture And Media Co., Ltd. [member] | |
Statement [LineItems] | |
Financial Information Related to Acquisition | The above acquisitions had the following effect on the Group’s assets and liabilities on acquisition date: Recognized RMB million Trade and other receivables 46 Cash and cash equivalents 2 Trade and other payables (11 ) Total net identifiable assets 37 Analysis of the net outflow of cash and cash equivalents in respect of the acquisitions: Cash consideration paid (47 ) Cash and cash equivalents acquired 2 Net cash outflow (45 ) Goodwill Goodwill was recognized as a result of the acquisitions as follows: Recognized RMB million Total consideration transferred 47 The fair value of 49% equity of XACM on the acquisition date 45 Less: fair value of identifiable net assets (37 ) Goodwill (Note 22) 55 |
Interest in associates (Tables)
Interest in associates (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Statement [LineItems] | |
Summary of Principal Associates | 2019 2018 RMB million RMB million Share of net assets 3,322 3,181 All the Group’s associates are unlisted without quoted market price. The particulars of the Group’s principal associates as at December 31, 2019 are as follows: Proportion of ownership Place of / operation Group’s effective interest The Company Subsidiaries Proportion of voting rights held by the Group Principal activity Southern Airlines Group Finance Co., Ltd. (“SA Finance”) (Note) PRC 48.59 % 41.81 % 6.78 % 48.59 % Provision of airlines financial services Sichuan Airlines Co., Ltd. (“Sichuan Airlines”) PRC 39 % 39 % — 39 % Airline transportation Southern Airlines Culture and Media Co., Ltd. (“SACM”) PRC 40 % 40 % — 40 % Advertising services Shenyang Konggang Logistic Co.,Ltd. (“Shenyang Konggang”) PRC 42.80 % 42.80 % — 42.80 % Ground services Xinjiang Civil Aviation Property Management Limited PRC 42.80 % 42.80 % — 42.80 % Property management Note: In March 2019, the Group made capital injection of RMB500 million into SA Finance, and the share of equity interest held by the Group increased from 33.98% to 48.59%; |
Aggregated individually immaterial associates [member] | |
Statement [LineItems] | |
Summarized Financial Information | The Group has interest in a number of individually immaterial associates that are accounted for using the equity method. The aggregate financial information of these associates is summarized as following: 2019 2018 2017 RMB million RMB million RMB million (Note) (Note) Aggregate carrying amount of individually immaterial associates 3,322 3,181 3,031 Aggregate amounts of the Group’s share of: (Loss)/profit from continuing operations (178 ) 263 431 Other comprehensive income 3 (4 ) 2 Total comprehensive income (175 ) 259 433 Note: The Group has initially applied IFRS 16 at January 1, 2019 using the modified retrospective approach. Under this approach, comparative information is not restated. See Note 2(b). |
Interest in joint ventures (Tab
Interest in joint ventures (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of joint ventures [line items] | |
Summary of Principal Joint Ventures | 2019 2018 RMB million RMB million Share of net assets 3,124 2,812 All the Group’s joint ventures are unlisted without quoted market price. The particulars of the Group’s principal joint ventures as at December 31, 2019 are as follows: Proportion of ownership Place of establishment/ operation Group’s effective interest The Company Subsidiaries Proportion of voting rights held by the Group Principal activity Guangzhou Aircraft Maintenance Engineering Co., Ltd. (“GAMECO”) PRC 50 % 50 % — 50 % Aircraft repair and maintenance services MTU Maintenance Zhuhai Co. Ltd. (“MTU”) PRC 50 % 50 % — 50 % Aircraft repair and maintenance services |
Aggregated individually immaterial joint ventures [member] | |
Disclosure of joint ventures [line items] | |
Summarized Financial Information | The Group has interest in a number of individually immaterial joint ventures that are accounted for using the equity method. The aggregate financial information of these joint ventures is summarized as follows: 2019 2018 2017 RMB RMB RMB Aggregate carrying amount of individually immaterial joint ventures 3,124 2,812 1,015 Aggregate amounts of the Group’s share of: Profit from continuing operations and total comprehensive income 365 200 99 |
Financial assets (Tables)
Financial assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Financial Assets | Non-current 2019 2018 Note RMB RMB Other equity instrument investments (FVOCI) - Non-listed (i) 188 234 - Non-tradable (i) 861 846 1,049 1,080 Other non-current - Listed shares (i) 74 71 - Non-listed (i) 32 32 106 103 Current financial assets 2019 2018 Note RMB RMB Other financial assets (ii) — 440 Notes: (i) Dividend income generated from the investments amounted to RMB23 million for the year of 2019 in total (2018: RMB20 million). (ii) This represents certain financing product the Group purchased from a commercial bank. |
Derivative financial assets __2
Derivative financial assets / (liabilities) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Derivative Financial Instruments | 2019 2018 Note RMB RMB Current assets: Cross currency swaps (i) 187 — Forward foreign exchange contracts (ii) 31 — 218 — Non-current Interest rate swaps (iii) 3 75 C urrent liabilities: Cross currency swaps (i) — (44 ) Notes: (i) The Group entered into cross currency swaps to mitigate its interest rate risk and currency risk. Under the cross currency swaps, the Group agrees with other third parties to exchange the floating interest and principal payments in USD for fixed interest rate ranging from 3.39% to 3.67% per annum (2018: 3.20% to 3.91% per annum) and principal payments in RMB. At December 31, 2019, the fair value of the cross currency swaps amounted to RMB187 million was recognized in assets (December 31, 2018: RMB44 million recognized in liabilities). The notional principal of the outstanding cross currency swaps as at December 31, 2019 amounted to USD620 million (December 31, 2018: USD979 million). (ii) In 2019, the Group entered into forward foreign exchange contracts to mitigate its forward currency risk. At December 31, 2019, the fair value of the forward foreign exchange contracts amounted to RMB31 million was recognized in assets (December 31, 2018: nil). The notional principal of the outstanding forward foreign exchange contracts as at December 31, 2019 amounted to USD1,035 million (December 31, 2018: nil). (iii) In 2015, the Group entered into interest rate swaps to mitigate its cash flow interest rate risk. The interest rate swaps allow the Group to pay at fixed rate from 1.64% to 1.72% per annum to receive LIBOR. The notional principal of the outstanding interest rate swap contracts as at December 31, 2019 amounted to USD325 million (December 31, 2018: USD393 million). |
Changes in fair value of fina_2
Changes in fair value of financial assets / (liabilities) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Statement of changes in equity [abstract] | |
Summary of Changes in fair value of financial assets / (liabilities) | 2019 2018 RMB million RMB million Other non-current 3 (8 ) Cross currency swaps (Note 27) 231 20 Forward foreign exchange contracts (Note 27) 31 — 265 12 |
Deferred tax assets_(liabilit_2
Deferred tax assets/(liabilities) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Statement [LineItems] | |
Summary of Reconciliation to the Consolidated Statement of Financial Position | (b) Reconciliation to the consolidated statement of financial position: 2019 2018 RMB million RMB million Net deferred tax asset recognized in the statement of financial position 2,692 1,566 Net deferred tax liability recognized in the statement of financial position (239 ) (676 ) 2,453 890 |
Temporary differences [member] | |
Statement [LineItems] | |
Detailed Information about Temporary Differences and Tax Losses | The expiry dates of unrecognized unused tax losses are analyzed as follows: 2019 2018 RMB million RMB million Expiring in: 2019 — 193 2020 — — 2021 92 95 2022 82 82 2023 116 122 2024 377 — 667 492 |
Unused tax losses [member] | |
Statement [LineItems] | |
Detailed Information about Temporary Differences and Tax Losses | (a) Movements of net deferred tax assets are as follows: At December 31, Impact on Initial of IFRS 16 Acquired in business combination (Charged)/ credited to consolidated income Credited to income At December 31, 2019 RMB million RMB million RMB million RMB million RMB million RMB million For the year ended December 31, 2019 Deferred tax assets: Net effect on right-of-use — 1,312 — 511 — 1,823 Accrued expenses 929 — — 185 — 1,114 Provision for major overhauls 697 (417 ) — (18 ) — 262 Contract liabilities/other non-current 81 — — (13 ) — 68 Provision for impairment losses 210 — — (129 ) — 81 Provision for tax losses 22 — — (15 ) — 7 Change in fair value of derivative financial liabilities 11 — — (11 ) — — Others 85 — — 29 — 114 2,035 895 — 539 — 3,469 Deferred tax liabilities: Accrued expenses (211 ) — — 20 — (191 ) Depreciation allowances under tax in excess of the related depreciation under accounting (618 ) — — 140 — (478 ) Change in fair value of derivative financial assets (18 ) — — — 17 (1 ) Change in fair value of other equity instrument investments (236 ) — — — 7 (229 ) Change in fair value of other non-current (19 ) — — (1 ) — (20 ) Change in fair value of financial assets — — — (54 ) — (54 ) Fair value re-measurement (25 ) — (6 ) 2 — (29 ) Others (18 ) — — 4 — (14 ) (1,145 ) — (6 ) 111 24 (1,016 ) Net deferred tax assets 890 895 (6 ) 650 24 2,453 At December 31, Impact on application IFRS 9/15 (Charged)/ credited to consolidated income Charged to income At December 31, RMB million RMB million RMB million RMB million RMB million For the year ended December 31, 2018 Deferred tax assets: Accrued expenses 1,020 — (91 ) — 929 Provision for major overhauls 691 — 6 — 697 Deferred revenue 88 (88 ) — — — Contract liabilities/other non-current — 87 (6 ) — 81 Provision for impairment losses 248 — (38 ) — 210 Provision for tax losses 10 — 12 — 22 Change in fair value of derivative financial liabilities 16 — (5 ) — 11 Others 82 — 3 — 85 2,155 (1 ) (119 ) — 2,035 Deferred tax liabilities: Accrued expenses (216 ) — 5 — (211 ) Depreciation allowances under tax in excess of the related depreciation under accounting (633 ) — 15 — (618 ) Change in fair value of derivative financial assets (11 ) — — (7 ) (18 ) Change in fair value of available-for-sale (141 ) 141 — — — Change in fair value of other equity instrument investments — (156 ) — (80 ) (236 ) Change in fair value of other non-current — (21 ) 2 — (19 ) Fair value re-measurement (26 ) — 1 — (25 ) Others (49 ) — 31 — (18 ) (1,076 ) (36 ) 54 (87 ) (1,145 ) Net deferred tax assets 1,079 (37 ) (65 ) (87 ) 890 |
Other assets (Tables)
Other assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Other Assets | Prepayment for exclusive use right of an airport Software Leasehold Others Total RMB million RMB million RMB million RMB RMB At January 1, 2018 220 316 181 677 1,394 Additions — 105 — 407 512 Acquisitions through business combinations — — 36 — 36 Transferred from construction in progress — 69 86 — 155 Disposals — — — (6 ) (6 ) Amortization for the year (10 ) (118 ) (61 ) (126 ) (315 ) At December 31, 2018 210 372 242 952 1,776 Impact on initial application of IFRS 16 (Note 2(b)) (210 ) — — — (210 ) At January 1, 2019 — 372 242 952 1,566 Additions — 75 — 338 413 Acquisitions through business combinations — — 9 23 32 Transferred from construction in progress — 183 113 — 296 Amortization for the year — (148 ) (113 ) (67 ) (328 ) At December 31, 2019 — 482 251 1,246 1,979 Representing: 2019 2018 Note RMB million RMB million Prepayments to related parties for acquisition of long-term assets 43(b)&52(c) 513 227 Amount paid to third parties and others 1,466 1,549 1,979 1,776 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Inventories | 2019 2018 RMB million RMB million Consumable spare parts and maintenance materials 1,683 1,688 Other supplies 264 232 1,947 1,920 Less: provision (54 ) (221 ) 1,893 1,699 |
Impairment of Inventory | Provision for inventories is shown as below: 2019 2018 RMB million RMB million At January 1 221 226 Provision for inventories 20 12 Provision written off upon disposal (187 ) (17 ) At December 31 54 221 |
Trade and Other receivables (Ta
Trade and Other receivables (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Trade Receivables | 2019 2018 RMB million RMB million Trade receivables 3,188 2,937 Less: loss allowance (36 ) (36 ) 3,152 2,901 |
Ageing Analysis of Trade Receivables Based on Transaction Date | (a) Ageing analysis Credit terms granted by the Group to sales agents and other customers generally range from one to three months. Ageing analysis of trade receivables based on transaction date is set out below: 2019 2018 RMB million RMB million Within 1 month 2,308 2,325 More than 1 month but less than 3 months 555 492 More than 3 months but less than 12 months 297 90 More than 1 year 28 30 3,188 2,937 Less: loss allowance (36 ) (36 ) 3,152 2,901 |
Trade Receivables by Currencies | The carrying amounts of the Group’s trade receivables are denominated in the following currencies: 2019 2018 RMB million RMB million RMB 2,686 2,430 USD 151 179 EURO 65 104 AUD 33 6 TWD 22 27 GBP 18 13 Others 213 178 3,188 2,937 |
Summary of Other Receivables | 2019 2018 Note RMB million RMB million VAT recoverable 5,214 5,342 Government grants receivables (i) 1,275 982 Rebate receivables on aircraft acquisitions 616 686 Other deposits 203 426 Others (ii) 557 584 7,865 8,020 Less: loss allowance (5 ) (5 ) 7,860 8,015 Notes: (i) Government grants receivables are recognized as there is reasonable assurance that they will be received and the Group has complied with the conditions attaching to them. (ii) The amounts include term deposits of RMB43 million (December 31, 2018: RMB264 million), which have a maturity over 3 months at acquisition. The weighted average annualized interest rate of term deposits as at December 31, 2019 is 2.54% (December 31, 2018: 2.26%). |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Cash and Cash Equivalents | (a) Cash and cash equivalents comprise: 2019 2018 RMB million RMB million Deposits in banks and other financial institutions 1 19 Cash at bank and other financial institutions and on hand 1,848 6,909 Cash and cash equivalents in the consolidated statement of financial position 1,849 6,928 |
Cash and Cash Equivalents by Currencies | The carrying amounts of the Group’s cash and cash equivalents are denominated in the following currencies: 2019 2018 RMB million RMB million RMB 1,231 6,281 USD 395 267 EURO 34 53 AUD 59 138 JPY 17 22 HKD 13 22 Others 100 145 1,849 6,928 |
Reconciliation of Profit before Income Tax to Cash Generated from Operating Activities | (b) Reconciliation of profit before income tax to cash generated from operating activities: 2019 2018 2017 Note RMB RMB RMB million (Note(i)) (Note (i)&(ii)) Profit before income tax 4,055 4,364 8,874 Adjustments for: Depreciation and amortization charges 12 24,292 13,969 12,963 Other amortization 12 328 339 199 Impairment losses on property, plant, equipment 19 18 — 324 Share of associates’ results 24 178 (263 ) (431 ) Share of joint ventures’ results 25 (365 ) (200 ) (99 ) Gain on disposal of property, plant and equipment and construction in progress 14 (140 ) (602 ) (989 ) Changes in fair value of financial instruments 28 (265 ) (12 ) 64 Remeasurement of the originally held equity interests in a joint venture (13 ) — (109 ) Interest income (74 ) (125 ) (89 ) Interest expense 15 5,845 3,202 2,747 Dividends income from other non-current (23 ) (20 ) — Dividend income from investments — — (18 ) Exchange losses / (gains), net 1,268 2,820 (642 ) Changes in working capital: Increase in inventories (179 ) (77 ) (34 ) (Decrease) /increase in contract liabilities and other non-current (337 ) 450 — Increase / (decrease) in sales in advance of carriage 1,709 1,441 (567 ) Increase / (decrease) in deferred benefits and gains 73 (147 ) 362 Decrease / (increase) in operating receivables 1,178 (5,322 ) (281 ) Increase in operating payables 2,180 1,357 1,204 Cash generated from operating activities 39,728 21,174 23,478 Notes: (i) The Group has initially applied IFRS 16 using the modified retrospective approach and adjusted the opening balances at January 1, 2019 to recognize right-of-use (ii) The Group has initially applied IFRS 15 and IFRS 9 at January 1, 2018. Under the transition methods chosen, comparative information is not restated. See Note 2(b). |
Summary of Reconciliation of Liabilities Arising from Financing Activities | (c) Reconciliation of liabilities arising from financing activities Bank loans Obligations Lease liabilities Interest rate Cross (liabilities) Cross (assets) Total RMB million RMB million RMB million RMB million RMB million RMB million RMB million (Note 36) (Note 38) (Note 37) (Note 27) (Note 27) (Note 27) At December 31, 2018 (Note) 54,417 72,221 — (75 ) 44 — 126,607 Impact on initial application of IFRS 16 — (72,221 ) 120,377 — — — 48,156 At January 1, 2019 54,417 — 120,377 (75 ) 44 — 174,763 Changes from financing cash flows: Proceeds from bank borrowings 33,985 — — — — — 33,985 Proceeds from ultra-short-term financing bills 43,489 — — — — — 43,489 Proceeds from corporate bonds 7,497 — — — — — 7,497 Repayment of bank borrowings (50,374 ) — — — — — (50,374 ) Repayment of ultra-short-term financing bills (25,000 ) — — — — — (25,000 ) Repayment of corporate bonds (12,951 ) — — — — — (12,951 ) Capital element of lease rentals paid — — (17,784 ) — — — (17,784 ) Total changes from financing cash flows (3,354 ) — (17,784 ) — — — (21,138 ) Exchange adjustments 108 — 1,130 — — — 1,238 Changes in fair value — — — 72 (44 ) (187 ) (159 ) Other changes: Increase in lease liabilities from entering into new leases during the year (Note 54) — — 30,351 — — — 30,351 Amortization amount of bond 9 — — — — — 9 Total other changes 9 — 30,351 — — — 30,360 At December 31, 2019 51,180 — 134,074 (3 ) — (187 ) 185,064 Note: The Group has initially applied IFRS 16 using the modified retrospective method and adjusted the opening balances at January 1, 2019 to recognize lease liabilities relating to leases which were previously classified as operating leases under IAS 17. See Note 2(b) and Note 34(b). Bank loans Obligations Interest rate Cross Total RMB million RMB million RMB million RMB million RMB million (Note 36) (Note 38) (Note 27) (Note 27) At January 1, 2018 48,287 67,924 (46 ) 64 116,229 Changes from financing cash flows: Proceeds from bank borrowings 34,385 — — — 34,385 Proceeds from issuance of ultra-short-term financing bills 5,500 — — — 5,500 Proceeds from corporate bonds 2,000 — — — 2,000 Repayment of bank borrowings (34,260 ) — — — (34,260 ) Repayment of ultra-short-term financing bills (1,500 ) — — — (1,500 ) Repayment of corporate bonds (345 ) — — — (345 ) Repayment of principal under finance lease obligations — (10,433 ) — — (10,433 ) Total changes from financing cash flows 5,780 (10,433 ) — — (4,653 ) Exchange adjustments 350 1,440 — — 1,790 Changes in fair value — — (29 ) (20 ) (49 ) Other changes: Additions of obligations under finance leases (Note 54) — 13,290 — — 13,290 Total other changes — 13,290 — — 13,290 At December 31, 2018 54,417 72,221 (75 ) 44 126,607 |
Summary of cash outflow related to leases | (d) Total cash outflow for leases Amounts included in the cash flow statement for leases comprise the following: 2019 2018 2017 RMB million RMB million RMB million (Note) (Note) Within operating cash flows (7,457 ) (12,316 ) (11,022 ) Within investing cash flows (224 ) (113 ) — Within financing cash flows (17,784 ) (10,433 ) (9,835 ) (25,465 ) (22,862 ) (20,857 ) |
Summary of change in classification of cash flows of certain rentals paid on leases | These amounts relate to the following: 2019 2018 2017 RMB million RMB million RMB million Lease rentals paid (25,241 ) (22,749 ) (20,857 ) Addition of land use rights (224 ) (113 ) — (25,465 ) (22,862 ) (20,857 ) |
Assets held for sale (Tables)
Assets held for sale (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Assets Held for Sale | 2019 RMB million 2018 RMB million Owned aircraft and other flight equipment — 224 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Statement [LineItems] | |
Summary of Borrowings | (a) Borrowings are analyzed as follows: 2019 RMB million 2018 RMB million Non-current Long-term borrowings – secured (Note (i)) 10 511 – unsecured 2,381 8,911 2,391 9,422 Corporate bond – unsecured (Note (ii)) 8,646 4,655 Medium-term notes – unsecured (Note (iii)) 2,600 1,599 13,637 15,676 Current Current portion of long-term – secured (Note (i)) 90 94 – unsecured 51 808 Short-term borrowings – unsecured 12,250 20,739 Ultra-short-term financing bills – unsecured 22,497 4,000 34,888 25,641 Current portion of corporate bond and medium-term notes – unsecured (Notes (ii)&(iii)) 2,655 13,100 37,543 38,741 Total borrowings 51,180 54,417 The borrowings are repayable: Within one year 37,543 38,741 In the second year 3,773 7,757 In the third to fifth year 8,389 6,004 After the fifth year 1,475 1,915 Total borrowings 51,180 54,417 Notes: (i) As at December 31, 2019, bank borrowings of the Group of approximately RMB10 million (December 31, 2018: RMB390 million) were secured by certain owned aircraft with a carrying amount of RMB339 million (December 31, 2018: RMB373 million). Bank borrowings of approximately RMB90 million (December 31, 2018: RMB215 million) were secured by certain land use rights under right-of-use assets of RMB87 million (December 31, 2018: lease prepayments of RMB88 million) and investment property of RMB15 million (December 31, 2018: RMB18 million). (ii) The Group issued corporate bonds with aggregate nominal value of RMB3,000 million on November 20, 2015 at a bond rate of 3.63%. The corporate bonds mature in five years. The Company will be entitled at its option to adjust its bond rate and the investors will be entitled to request the Company to redeem all or a portion of the bonds after three years of the issue date. The bonds with nominal value of RMB345 million were redeemed by the Company in 2018 at the request of investors, and the remaining bonds of RMB2,655 million will mature within one year. The Group issued corporate bonds with aggregate nominal value of RMB5,000 million on March 3, 2016 at a bond rate of 2.97%. The corporate bonds mature in three years. The bonds with nominal value of RMB5,000 million were redeemed by the Company in 2019. The Group issued corporate bonds with aggregate nominal value of RMB5,000 million on May 25, 2016 at a bond rate of 3.12%. The corporate bonds mature in five years. The Company will be entitled at its option to adjust its bond rate and the investors will be entitled to request the Company to redeem all or a portion of the bonds after three years of the issue date. The bonds with nominal value of RMB4,851 million were redeemed by the Company in 2019 at the request of investors, and the remaining bonds of RMB149 million will mature in five years from the issue date. The Group issued corporate bonds with aggregate nominal value of RMB2,000 million on November 26, 2018 at a bond rate of 3.92%. The corporate bonds mature in three years. The Group issued corporate bonds with aggregate nominal value of RMB3,000 million on February 21, 2019 at a bond rate of 3.45%. The corporate bonds mature in three years. The Group issued corporate bonds with aggregate nominal value of RMB2,000 million on May 16, 2019 at a bond rate of 3.72%. The corporate bonds mature in three years. Xiamen Airlines issued corporate bonds with aggregate nominal value of RMB1,500 million on November 20, 2019 at a bond rate of 3.58%. The corporate bonds mature in three years. (iii) Xiamen Airlines issued medium-term notes with aggregate nominal value of RMB1,300 million on August 15, 2016 at an interest rate of 2.97%. The medium-term notes mature in three years and were redeemed in 2019. Xiamen Airlines issued medium-term notes with aggregate nominal value of RMB1,600 million on October 20, 2016 at an interest rate of 3.11%. The medium-term notes mature in five years. Xiamen Airlines issued medium-term notes with aggregate nominal value of RMB1,800 million on November 21, 2016 at an interest rate of 3.38%. The medium-term notes mature in three years and were redeemed in 2019. The Group issued medium-term notes with aggregate nominal value of RMB1,000 million on October 18, 2019 at an interest rate of 3.20%. The medium-term notes mature in three years. |
Borrowings by Currencies | (d) The carrying amounts of the borrowings are denominated in the following currencies: 2019 RMB million 2018 RMB million Renminbi 46,823 47,607 USD 4,357 6,810 51,180 54,417 |
Non-current borrowings [member] | |
Statement [LineItems] | |
Summary of Borrowings | (c) Details of borrowings with original maturity over one year are as follows: 2019 RMB million 2018 RMB million Renminbi denominated loans Fixed interest rate at 1.20% per annum as at December 31, 2019, with maturities through 2027 19 19 Corporate Bond - Fixed bond rate at 2.97%~3.92% 11,301 14,655 Medium-term notes - Fixed interest rate at 2.97%~3.38% 2,600 4,699 Floating interest rates 90%~100% of benchmark interest rate (stipulated by PBOC) as at December 31, 2019, with maturities through 2033 1,633 10,213 Fixed interest rate at 3.92% per annum as at December 31, 2019, with maturities through 2022 800 — Fixed interest rate at 4.41% per annum as at December 31, 2019, with maturities through 2034 80 — USD denominated loans Fixed interest rate at 3.32% per annum as at December 31, 2018, with maturities through 2020 — 92 16,433 29,678 Less: loans due within one year classified as current liabilities (2,796 ) (14,002 ) 13,637 15,676 |
Lease liabilities (Tables)
Lease liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Lease liabilities [abstract] | |
Lease liabilities | The following table shows the remaining contractual maturities of the Group’s lease liabilities at the end of the current reporting period and at the date of transition to IFRS 16: December 31, 2019 Present value of the Total Present value January 1, 2019 (Note) Total minimum RMB million RMB million RMB million RMB million Within 1 year 19,998 25,404 16,921 21,507 After 1 year but within 2 years 19,249 23,860 16,018 20,033 After 2 years but within 5 years 54,155 63,003 50,709 59,111 After 5 years 40,672 44,814 36,729 40,307 114,076 131,677 103,456 119,451 134,074 157,081 120,377 140,958 Less: total future interest expenses (23,007 ) (20,581 ) Present value of lease liabilities 134,074 120,377 Note: The Group has initially applied IFRS 16 using the modified retrospective approach and adjusted the opening balances at January 1, 2019 to recognize lease liabilities relating to leases which were previously classified as operating leases under IAS 17. These liabilities have been aggregated with the brought forward balances relating to leases previously classified as finance leases. Comparative information as at December 31, 2018 has not been restated as set out in Note 38 and relates solely to leases previously classified as finance leases. Further details on the impact of the transition to IFRS 16 are set out in Note 2(b). |
Summary of lease liabilities demonimated by currencies | Denominated obligations by currencies For the year ended Effective interest USD RMB million Japanese Yen Renminbi RMB million Euro RMB million Other currencies Total RMB million Fixed interest rates 1.75%~5.03% 50,568 10 7,023 15 22 57,638 Floating interest rates 0%~5.22% 15,335 1,272 56,100 3,535 194 76,436 65,903 1,282 63,123 3,550 216 134,074 Denominated obligations by currencies For the year ended Effective interest USD Japanese Yen Renminbi Euro Other currencies Total RMB million Fixed interest rates 1.75%~5.03% 8,630 — 1,097 — — 9,727 Floating interest rates 0%~5.80% 18,237 1,457 38,629 3,927 244 62,494 26,867 1,457 39,726 3,927 244 72,221 |
Obligations under finance lea_2
Obligations under finance leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Future Payments under Finance Leases | As at December 31, 2018, obligations under finance leases are as follows: 2018 Present value of the minimum lease payments Total minimum lease payments Interest RMB million RMB million RMB million Within 1 year 9,555 12,062 2,507 After 1 year but within 2 years 9,572 11,738 2,166 After 2 years but within 5 years 32,285 36,765 4,480 After 5 years 20,809 22,200 1,391 72,221 82,765 10,544 Less: balance due within one year classified as current liabilities (9,555 ) 62,666 |
Trade payables (Tables)
Trade payables (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Ageing Analysis of Trade Payables Based on Transaction Date | Ageing analysis of trade payables based on transaction date is set out below: 2019 RMB million 2018 RMB million Within 1 month 563 406 More than 1 month but less than 3 months 506 829 More than 3 months but less than 6 months 450 476 More than 6 months but less than 1 year 568 423 More than 1 year 230 175 2,317 2,309 |
Trade Payables by Currencies | The carrying amounts of the Group’s trade payables are denominated in the following currencies: 2019 RMB million 2018 RMB million Renminbi 1,845 1,910 USD 423 376 Others 49 23 2,317 2,309 |
Contract liabilities (Tables)
Contract liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Contract Liabilities | 2019 RMB million 2018 Unredeemed credits under the frequent flyer award programs (Notes (i) & (ii)) 1,568 1,693 Others 42 — 1,610 1,693 Notes: (i) As at December 31, 2019, the aggregated amount of the transaction price allocated to the remaining performance obligation, which is the unredeemed credits under the frequent flyer award programs, amounted to RMB3,331 million (December 31, 2018: RMB3,711 million). This amount represents revenue expected to be recognized in the future when the customers take possession of the goods or services redeemed. (ii) The amounts represent the unredeemed credits under the frequent flyer award programs. Movement in the accounts is set out below: 2019 2018 RMB million RMB million Balance at January 1 3,711 3,261 -Current 1,693 1,461 -Non-current 2,018 1,800 Addition as a result of increase of the unredeemed credits under the frequent flyer award programs 1,979 2,161 Reduction as a result of revenue recognized during the year (2,359 ) (1,711 ) Representing: -Recognized as revenue from opening balance of contract liabilities (1,948 ) (1,461 ) -Recognized as revenue from current year addition of contract liabilities (411 ) (250 ) Balance at December 31 3,331 3,711 Representing: -Current 1,568 1,693 -Non-current 1,763 2,018 |
Other non-current liabilities (
Other non-current liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Other Non-current Liabilities | Note 2019 2018 Unredeemed credits under the frequent flyer award programs 40 1,763 2,018 Others 19 18 1,782 2,036 |
Balances with related compani_2
Balances with related companies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Amounts Due from/to Related Companies | (a) Amounts due from related companies Note 2019 2018 Current CSAH and its affiliates 18 51 Associates 35 22 Joint ventures 20 17 52(c) 73 90 The amounts due from related companies are unsecured, interest free and have no fixed terms of repayment. They are expected to be recovered within one year. (b) Prepayments to related companies for acquisition of long-term assets Note 2019 2018 RMB million RMB million Non-current CSAH and its affiliates 160 80 An associate 353 147 30&52(c) 513 227 (c) Amounts due to related companies 2019 2018 Note RMB million RMB million Current CSAH and its affiliates 116 49 Associates 1 12 Joint ventures 53 63 Other related companies — 3 52(c) 170 127 |
Accrued expenses (Tables)
Accrued expenses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Accrued Expenses | 2019 2018 RMB million RMB million (Note) Repairs and maintenance 4,312 4,468 Jet fuel costs 1,846 1,900 Salaries and welfare 3,974 3,212 Landing and navigation fees 2,612 2,492 Computer reservation services 461 585 Provision for major overhauls (Note 46) 883 821 Interest expenses 345 771 Air catering expenses 147 166 Provision for early retirement benefits (Note 47) 1 2 Others 1,164 1,265 15,745 15,682 |
Other liabilities (Tables)
Other liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Other Liabilities | 2019 2018 RMB million RMB million Civil Aviation Development Fund and airport tax payable 1,937 2,012 Payable for purchase of property, plant and equipment 2,070 1,608 Sales agent deposits 592 597 Other taxes payable 426 443 Deposit received for chartered flights 214 186 Others 2,002 1,727 7,241 6,573 |
Provision for major overhauls (
Provision for major overhauls (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Details of Provision for Major Overhauls in Respect of Aircraft Held under Operating Leases | Details of provision for major overhauls in respect of aircraft held under leases are as follows: 2019 2018 RMB million RMB million At January 1 (Note) 4,349 3,370 Additional provision 768 943 Utilization (692 ) (661 ) At December 31 4,425 3,652 Less: current portion (Note 44) (883 ) (821 ) 3,542 2,831 Note: On the date of transition to IFRS 16, provision for major overhauls of RMB697 million (including current portion) were recognized at January 1, 2019. See Note 2(b). |
Provision for early retiremen_2
Provision for early retirement benefits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Details of Provision for Early Retirement Benefits in Respect of Obligations to Early Retired Employees | Details of provision for early retirement benefits in respect of obligations to early retired employees are as follows: 2019 2018 RMB million RMB million At January 1 4 7 Provision for the year (Note 13) — 1 Payments made during the year (3 ) (4 ) At December 31 1 4 Less: current portion (Note 44) (1 ) (2 ) — 2 |
Deferred benefits and gains (Ta
Deferred benefits and gains (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Deferred Benefits and Gains | 2019 2018 RMB million RMB million (Note) Leases rebates — 47 Maintenance rebates 600 746 Gains relating to sale and leaseback — 15 Government grants 222 85 Others 11 13 833 906 Note: On the date of transition to IFRS 16, leases rebates of RMB47 million, maintenance rebates of RMB84 million and gains relating to sales and leaseback of RMB15 million, previously included in deferred benefits and gains, were adjusted to costs of right-of-use |
Share capital (Tables)
Share capital (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Share Capital | 2019 2018 RMB million RMB million Registered, issued and paid up capital: Trade-restricted: 489,202,658 A shares of RMB1.00 each 489 489 Nil A share (2018: 1,088,870,431 shares of RMB1.00 each) (Note (ii)) — 1,089 600,925,925 H shares of RMB1.00 each 601 601 1,090 2,179 Tradable: 4,039,228,665 A shares of RMB1.00 each owned by CSAH 4,039 4,039 4,072,291,766 A shares of RMB1.00 each 4,073 2,984 3,065,523,272 H shares of RMB1.00 each 3,065 3,065 11,177 10,088 12,267 12,267 Notes: (i) All the A and H shares rank pari passu in all material respects. (ii) In September 2018, the Company issued 1,578,073,089 A shares (“new A shares”) to CSAH and other six entities, and issued 600,925,925 H shares (“new H shares”) to a fellow subsidiary of CSAH. The new A shares issued to CSAH are restricted for trading within 36 months upon completion of the issuance, whereas other new A shares issued to other parties are restricted for trading within 12 months upon completion of the issuances. In 2019, the trading restriction of 1,088,870,431 A shares issued to other parties was released. Further, in accordance with the H shares subscription agreement entered into between the Company and the fellow subsidiary of CSAH, the fellow subsidiary of CSAH committed not to trade or transfer any of the new H shares within 36 months upon completion of the issuance. |
Reserves (Tables)
Reserves (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Final Dividend Proposed after the End of Reporting Year Payable to Equity Shareholders of the Company | Dividends payable to equity shareholders of the Company attributable to the year: 2019 2018 RMB RMB Nil dividend proposed after the end of the reporting year (2018: RMB0.05 per share) (inclusive of applicable tax) — 613 |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Capital Commitments Outstanding not Provided for in Financial Statements | Capital commitments outstanding as at December 31, 2019 and 2018, not provided for in the financial statements were as follows: 2019 2018 RMB million RMB million Commitments in respect of aircraft and flight equipment – authorized and contracted for 71,224 82,199 Investment commitments – authorized and contracted for – share of capital commitments of a joint venture 322 26 – capital contributions for acquisition of non-controlling interests in a subsidiary 232 — – capital contributions for acquisition of interests in a joint venture — 14 554 40 – authorized but not contracted for – share of capital commitments of a joint venture 31 21 585 61 Commitments for other property, plant and equipment – authorized and contracted for 4,571 7,224 – authorized but not contracted for 10,451 14,062 15,022 21,286 86,831 103,546 |
Approximate Total Future Payments, Including Estimated Amounts for Price Escalation through Anticipated Delivery Dates for Aircraft and Flight Equipment | As at December 31, 2019 and 2018, the approximate total future payments, including estimated amounts for price escalation through anticipated delivery dates for aircraft and flight equipment are as follows: 2019 2018 RMB million RMB million 2019 — 38,141 2020 41,442 32,395 2021 21,077 8,628 2022 5,464 3,035 2023 and afterwards 3,241 — 71,224 82,199 |
Material related party transa_2
Material related party transactions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Statement [LineItems] | |
Details of Balances with Related Parties | Remuneration for key management personnel of the Group, including amounts paid to the Company’s directors (excluding independent non-executive 2019 2018 2017 RMB ’000 RMB ’000 RMB ’000 Salaries, wages and welfare 13,803 15,218 12,151 Retirement scheme contributions 1,785 1,797 1,841 15,588 17,015 13,992 2019 2018 2017 RMB ’000 RMB ’000 RMB ’000 Directors and supervisors (Note 60) 1,298 878 2,952 Senior management 14,290 16,137 11,040 15,588 17,015 13,992 |
Details of Significant Transactions with Related Parties | Details of the significant transactions carried out by the Group are as follows: 2019 2018 2017 Note RMB million RMB million RMB Income received from CSAH and its affiliates Cargo handling income and rental income (i) 7 4 3 Aviation material sales income (ii) 36 6 4 Entrusted management income (iii) 27 27 — Commission income (iv) 14 — — Others 1 9 8 Purchase of goods and services from CSAH and its affiliates Cargo handling charges (v) — 111 112 Commission expenses (v) 44 14 44 Transportation expense (v) — 10 — Maintenance material purchase expense and lease charges for maintenance material (ii) 165 98 43 Software service expenses (ii) — 5 4 Air catering supplies expenses (i) 142 135 125 Repairing charges (vi) — 1,184 1,537 Lease charges for land and buildings (vii) 353 294 189 Property management fee (viii) 151 106 72 Acquisition of property (ix) — 160 — Others 7 5 12 Purchase of goods and services from joint ventures and associates Repairing charges (vi) 2,442 786 — Repairing charges and maintenance material purchase expenses (x) 2,956 2,692 2,492 Flight simulation service charges (xxiv) — — 194 Training expenses (xxv) — — 36 Ground service expenses (xi) 112 123 123 Air catering supplies (xii) 93 98 109 Advertising expenses (xiii) 196 105 74 Property management fee (xiv) 26 28 26 Commission expenses (xv) 14 — — Others 7 7 6 Income received from joint ventures and associates Maintenance material sales and handling income (xvi) 7 15 28 Rental income (xxiv) — — 18 Entrustment income for advertising media business (xiii) 1 1 20 Repairing income (xv) 4 11 1 Air catering supplies income (xv) 35 16 26 Transfer of pilots income (xv) 35 — — Commission income (xvii) — 20 26 Ground service income (xviii) 16 13 10 Labor service income and rental income (xix) 8 22 20 Others 15 13 7 Income received from other related company Air tickets income (xx) — 9 6 Purchase of goods and services from other related companies Advertising expenses (xx) — 10 10 Computer reservation services (xxii) 685 592 576 Aviation supplies expenses (xxi) 53 48 39 Canteen service (xxi) 24 19 15 Others 9 3 4 Acquisition from CSAH and its affiliates Acquisition of a subsidiary (xiii) — — 47 Equity transaction (vi) — 1,602 — Aircraft related transactions with CSAH and its affiliates Payment of lease charges on aircraft (xxiii) 2,696 1,542 175 Consideration of disposal of aircraft (xxiii) — 481 — (i) Shenzhen Air Catering Co., Ltd. (“SACC”) is an associate of CSAH. Air catering supplies expenses are payable by the Group in respect of certain in-flight In addition, the Group leased certain equipment to SACC under operating lease agreements. (ii) China Aviation Supplies Holding Company (“CASC”) is an associate of CSAH. The Group purchases software service, as well as purchases and leases maintenance material from CASC, and CASC also purchases maintenance material from the Group. (iii) The Group provides entrusted management service to CSAH. (iv) Southern Airlines Insurance Brokerage Co., Ltd. (“SAIB”), is a wholly-owned subsidiary of CSAH. The Group provides certain website resources to SAIB for the sales of air insurance. (v) China Southern Airlines Group Ground Services Co., Ltd. (“GSC”), is a wholly-owned subsidiary of CSAH. GSC entered into liquidation at the year end of 2018 and has no transaction with the Group this year. Commission is earned by Shenzhen Baiyun Air Service Co.,Ltd., the subsidiary of GSC, in connection with the air tickets sold by them on behalf of the Group. Commission is calculated based on the rates stipulated by the Civil Aviation Administration of China and International Air Transportation Association. (vi) MTU, a former joint venture of CSAH, provides comprehensive maintenance services to the Group. MTU became a joint venture of the Group on August 28, 2018. (vii) The Group leases certain land and buildings in the PRC from CSAH and its affiliates. The amount represents rental payments for land and buildings paid or payable to CSAH and its affiliates. (viii) China Southern Airlines Group Property Management Co., Ltd., a wholly-owned subsidiary of CSAH. COHL & CSAH Construction Development Co., Ltd., a joint venture of CSAH. Both of them provide property management services to the Group. (ix) The Group acquires properties from COHL & CSAH Construction Development Co., Ltd. (x) GAMECO and Shenyang Aircraft Maintenance, joint ventures of the Group, provide comprehensive maintenance services to the Group. The Company acquired 21% equity interest in Shenyang Aircraft Maintenance on April 23, 2019, Shenyang Aircraft Maintenance became a wholly-owned subsidiary of the Company (Note 23(iii)). The Group also purchases maintenance material from GAMECO. (xi) Beijing Aviation Ground Services Co., Ltd. and Shenyang Konggang Logistic Co., Ltd., associates of the Group provide ground services to the Group. (xii) Beijing Airport Inflight Kitchen Co., Ltd. is an associate of the Group and provides air catering related services to the Group. (xiii) SACM, an associate of the Group, provides advertising services to the Group. The Group provides certain media resources to SACM. XACM, a former associate of Xiamen Airlines, provided advertising service to Xiamen Airlines. In October 2017, XACM became a wholly-owned subsidiary of Xiamen Airlines. Xiamen Airlines provides certain media resources to XACM before the acquisition. (xiv) Xinjiang Civil Aviation Property Management Ltd., an associate of the Group, provides property management services to the Group. (xv) The Group provides repairing service and air catering supplies service to Sichuan Airlines. Commission is earned by Sichuan Airlines in connection with the air tickets sold on behalf of the Group. In addition, the Group transferred pilots to Sichuan Airlines. (xvi) The Group imports and sells maintenance materials to GAMECO and earns maintenance material sales and handling income. (xvii) The Group provides certain website resources to SA Finance for the sales of air insurance. (xviii) The Group provides ground services to Shenyang Konggang Logistic Co., Ltd. and Sichuan Airlines, which are associates of the Group. (xix) The Group provides labor service to Shenyang Aircraft Maintenance, and the charge rates are determined by reference to prevailing market price. In addition, the Group leases certain property and equipment to Shenyang Aircraft Maintenance. (xx) Phoenix Satellite Television Holdings Ltd. (“the Phoenix Group”) was a related party of the Group as the board chairman of the Phoenix Group was appointed as a non-executive In addition, the Group sells tickets to the Phoenix Group on market price. (xxi) The chairman of Pearl Aviation Services is the key management personnel of the Company. The Group purchases aviation supplies and canteen services from Pearl Aviation Services. In December 2019, Pearl Aviation Services became a wholly-owned subsidiary of the Group (Note 23(iv)). (xxii) China Travel Sky Holding Company is a related party of the Group as a key management personnel of the Group was appointed as the director of China Travel Sky Holding Company. It provides computer reservation services. (xxiii) China Southern Airlines International Finance Leasing Co., Ltd. (“CSA International”), originally a wholly-owned subsidiary of CSAH, and became a joint venture of CSAH in 2019, provides aircraft and engines lease services to the Group. Also, the Group disposed aircraft to CSA International. (xxiv) Zhuhai Xiang Yi, a former joint venture of the Group, provides flight simulation services to the Group. In addition, the Group leased certain flight training facilities and buildings to Zhuhai Xiang Yi. In July 2017, Zhuhai Xiang Yi became a wholly-owned subsidiary of the Company. The amount represents the transactions in 2017 which incurred prior to the acquisition (Note 23(vi)). (xxv) Flying College, a former joint venture of the Group, provides training services to the Group. Flying College became a subsidiary of the Group on November 20, 2018 (Note 23(v)). |
Details of Balances with Related Parties | (i) Loans from related parties At December 31, 2019, loans from SA Finance to the Group amounted to RMB76 million (December 31, 2018: RMB758 million). The unsecured loans are repayable as follows: 2019 2018 RMB million RMB million Within 1 year 23 630 After 1 year but within 2 years — 10 After 2 years but within 5 years 53 118 76 758 Interest expense paid on such loans amounted to RMB9 million (2018: RMB18 million ) and the interest rates range from 4.28% to 4.35% per annum during the year ended December 31, 2019 (2018: 3.92% to 4.51% ). (ii) Entrusted loans from CSAH In 2019, CSAH, SA Finance and the Group entered into an entrusted loan agreement, pursuant to which, CSAH, as the lender, entrusted SA Finance to lend RMB5,520 million (December 31, 2018: RMB500 million) to the Group from July 10, 2019 to July 8, 2022. The interest rate is 90% of benchmark interest rate stipulated by PBOC per annum. The unsecured entrusted loans are repayable as follows: 2019 2018 Note RMB million RMB million Within 1 year 36(e) 4,720 500 After 1 year but within 2 years — — After 2 years but within 5 years 36(e) 800 — 5,520 500 Interest expense paid on such loans amounted to RMB86 million (2018: RMB10 million ) at interest rates 3.92% per annum during the year ended December 31, 2019 (2018: 3.92% per annum). (iii) Deposits placed with SA Finance As at December 31, 2019, the Group’s deposits with SA Finance are presented in the table below. The applicable interest rates are determined in accordance with the rates published by the PBOC. 2019 2018 RMB million RMB million Deposits placed with SA Finance 711 5,583 Interest income received on such deposits amounted to RMB40 million during the year ended December 31, 2019 (2018: RMB80 million). |
Southern Airlines Group Finance Co., Ltd [member] | |
Statement [LineItems] | |
Details of Balances with Related Parties | Details of amounts due from/to CSAH and its affiliates, associates, joint ventures and other related company of the Group: 2019 2018 Note RMB million RMB million Receivables: CSAH and its affiliates 18 51 Associates 35 22 Joint ventures 20 17 43(a) 73 90 2019 2018 Note RMB million RMB million Prepayments of acquisition of long-term assets: CSAH and its affiliates 160 80 An associate 353 147 30&43(b) 513 227 2019 2018 Note RMB million RMB million Payables: CSAH and its affiliates 116 49 Associates 1 12 Joint ventures 53 63 Other related companies — 3 43(c) 170 127 2019 2018 RMB million RMB million Accrued expenses: CSAH and its affiliates 55 62 Associates 169 139 Joint ventures 2,092 2,320 Other related companies 274 633 2,590 3,154 Lease liabilities The CSAH and its affiliates 23,734 — Obligations under finance leases: CSAH and its affiliates — 13,360 |
Directors' and supervisors' e_2
Directors' and supervisors' emoluments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Remuneration of Every Director and Supervisor | The remuneration of every director and supervisor for the year ended December 31, 2019 is set out below: Name Directors’ fees Salaries, Housing Employer’s Total RMB ’000 RMB ’000 RMB ’000 RMB ’000 RMB ’000 Executive directors Wang Chang Shun (Note (i)) — — — — — Ma Xu Lun (Note (i)&(iii)) — — — — — Han Wen Sheng (Note (i)&(iii)) — — — — — Zhang Zi Fang (Note (i)&(iv)) — — — — — Supervisors Pan Fu (Note (i)&(iv)) — — — — — Li Jia Shi (Note (ii)) — — — — — Mao Juan — 712 — 129 841 Lin Xiao Chun (Note (iii)) — 367 — 90 457 Independent non-executive Tan Jin Song 150 — — — 150 Jiao Shu Ge 150 — — — 150 Zheng Fan (Note (vi)) 60 — — — 60 Gu Hui Zhong (Note (vi)) 60 — — — 60 The remuneration of every director and supervisor for the year ended December 31, 2018 is set out below: Name Directors’ fees Salaries, Housing Employer’s Total RMB ’000 RMB ’000 RMB ’000 RMB ’000 RMB ’000 Executive directors Wang Chang Shun (Note (i)) — — — — — Tan Wan Geng (Note (i) & (v)) — — — — — Zhang Zi Fang (Note (i) & (iv)) — — — — — Supervisors Pan Fu (Note (i) & (iv)) — — — — — Li Jia Shi (Note (ii)) — 84 — 12 96 Mao Juan — 658 — 124 782 Independent non-executive Tan Jin Song 150 — — — 150 Jiao Shu Ge 150 — — — 150 Zheng Fan (Note (vi)) — — — — — Gu Hui Zhong (Note (vi)) 60 — — — 60 The remuneration of every director and supervisor for the year ended December 31, 2017 is set out below: Name Directors’ fees Salaries, Housing Employer’s Total RMB ’000 RMB ’000 RMB ’000 RMB ’000 RMB ’000 Non-executive Yuan Xin An (Note (i) & (vii)) — — — — — Yang Li Hua (Note (i) & (vii)) — — — — — Executive directors Wang Chang Shun (Note (i) & (x)) — — — — — Tan Wan Geng (Note (i)) — — — — — Zhang Zi Fang (Note (i)) — — — — — Li Shao Bin (Note (vii)) — 812 — 123 935 Supervisors Pan Fu (Note (i)) — — — — — Li Jia Shi — 901 — 126 1,027 Zhang Wei (Note (i) & (vii)) — — — — — Yang Yi Hua (Note (vii) & (ix)) — — — — — Wu De Ming (Note (vii)) — 419 — 127 546 Mao Juan (Note (viii)) — 324 — 120 444 Independent non-executive directors Ning Xiang Dong (Note (vii)) 150 — — — 150 Liu Chang Le (Note (vii)) 150 — — — 150 Tan Jin Song 150 — — — 150 Guo Wei (Note (vii)) 150 — — — 150 Jiao Shu Ge 150 — — — 150 Zheng Fan (Note (viii)) — — — — — Gu Hui Zhong (Note (viii)) — — — — — Notes: (i) These directors or supervisors did not receive any remuneration for their services in the capacity of the directors or supervisors of the Company. They also held management positions in CSAH and their salaries were borne by CSAH. (ii) Mr. Li Jia Shi did not receive any remuneration for his service in the capacity of the supervisor of the Company since February 1, 2018. He also held management position in CSAH and his salary was borne by CSAH. (iii) Appointed on May 8, 2019. (iv) Resigned on May 8, 2019. (v) Mr. Tan Wan Geng was an executive director of the Company before November 30, 2018, and resigned from the Company on November 30, 2018. (vi) Mr. Zheng Fan and Mr. Gu Hui Zhong receive remuneration in accordance with the relevant provisions of the PRC. (vii) Resigned on December 20, 2017. (viii) Appointed on December 20, 2017. (ix) Ms. Yang Yi Hua retired in September 2015, while still served as supervisor before December 20, 2017. Ms. Yang Yi Hua did not receive any remuneration for her service in the capacity of the supervisor of the Company since September 2015. (x) Mr. Wang Chang Shun was a non-executive director of the Company before December 20, 2017 and was appointed to be the executive director since December 20, 2017. |
Possible impact of amendments_2
Possible impact of amendments, new standards and interpretations issued but not yet effective for the year ended December 31, 2019 (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of New Standards or Interpretations Not Yet Adopted | Up to the date of issue of these financial statements, the IASB has issued a number of amendments, new standards and interpretations which are not yet effective for the year ended December 31, 2019 and which have not been adopted in these financial statements. These include the following which may be relevant to the Group. Effective for accounting periods Amendments to IFRS 3, Definition of a business January 1, 2020 Amendments to IAS 1 and IAS 8, Definition of material January 1, 2020 |
Significant Accounting Polici_4
Significant Accounting Policies - Summary of Operating Lease Commitments (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Less: commitments relating to leases exempt from capitalization: | |||
Less: total future interest expenses | ¥ (23,007) | ¥ (20,581) | |
Total lease liabilities recognized at January 1, 2019 | ¥ 134,074 | 120,377 | ¥ 72,221 |
IFRS Sixteen [Member] | |||
Lease Commitements Reconcilation [Line Items] | |||
Operating lease commitments at 31 December 2018 | 75,729 | ¥ 75,729 | |
Less: commitments relating to leases exempt from capitalization: | |||
- short-term leases, other leases with remaining lease term ending on or before 31 December 2019 and leases of low value assets | (924) | ||
- leases contracts entered before 31 December 2018 but the lease period start after 1 January 2019 | (16,612) | ||
Less: total future interest expenses | (10,037) | ||
Present value of remaining lease payments, discounted using the incremental borrowing rates at January 1, 2019 | 48,156 | ||
Add: finance lease liabilities recognized as at December 31, 2018 | 72,221 | ||
Total lease liabilities recognized at January 1, 2019 | ¥ 120,377 |
Significant Accounting Polici_5
Significant Accounting Policies - Summary of Impacts of the Adoption of IFRS 16 (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Disclosure Of Impact Of Ifrs Sixteen On The Financial Position [Line Items] | |||||||
Property, plant and equipment, net | ¥ 84,788 | ¥ 170,692 | [1] | ¥ 170,692 | |||
Right-of-use assets | 153,211 | 0 | [1] | ||||
Lease prepayments | 0 | 2,970 | [1] | ||||
Interest in associates | 3,322 | 3,181 | [1] | ||||
Deferred tax assets | 2,692 | 1,566 | [1] | ||||
Other assets | 1,979 | 1,776 | [1] | 1,394 | |||
Total non-current assets | 290,190 | 222,877 | [1] | ||||
Prepaid expenses and other current assets | 1,591 | 3,659 | [1] | ||||
Total current assets | 16,738 | 24,072 | [1] | ||||
Lease liabilities | 19,998 | 0 | [1] | ||||
Current portion of obligation under finance leases | 9,555 | ||||||
Accrued expenses | 15,745 | 15,682 | [1] | ||||
Total current liabilities | 95,490 | 83,687 | [1] | ||||
Net current liabilities | (78,752) | 59,615 | |||||
Total assets less current liabilities | 163,262 | ||||||
Lease liabilities | 114,076 | 0 | [1] | ||||
Obligations under finance leases | 62,666 | ||||||
Provision for major overhauls | 3,542 | 2,831 | [1] | ||||
Deferred benefits and gains | 833 | 906 | [1] | ||||
Deferred tax liabilities | 239 | 676 | [1] | ||||
Total non-current liabilities | 134,109 | 84,793 | [1] | ||||
Net assets | 77,329 | 78,469 | [1] | ||||
Reserves | 51,839 | 52,990 | [1] | ||||
Total equity attributable to equity shareholders of the Company | 64,106 | 65,257 | [1] | ||||
Non-controlling interests | 13,223 | 13,212 | [1] | ||||
Total equity | ¥ 77,329 | 78,469 | [1] | ¥ 62,543 | [1],[2] | ¥ 54,976 | |
Remeasurement [member] | |||||||
Disclosure Of Impact Of Ifrs Sixteen On The Financial Position [Line Items] | |||||||
Other assets | 1,566 | ||||||
IFRS Sixteen [Member] | Remeasurement [member] | |||||||
Disclosure Of Impact Of Ifrs Sixteen On The Financial Position [Line Items] | |||||||
Right-of-use assets | 45,437 | ||||||
Interest in associates | (527) | ||||||
Deferred tax assets | 717 | ||||||
Total non-current assets | 45,627 | ||||||
Prepaid expenses and other current assets | (811) | ||||||
Total current assets | (811) | ||||||
Lease liabilities | 6,969 | ||||||
Accrued expenses | (83) | ||||||
Total current liabilities | 6,886 | ||||||
Net current liabilities | 7,697 | ||||||
Total assets less current liabilities | 37,930 | ||||||
Lease liabilities | 40,790 | ||||||
Provision for major overhauls | 780 | ||||||
Deferred tax liabilities | (178) | ||||||
Total non-current liabilities | 41,392 | ||||||
Net assets | (3,462) | ||||||
Reserves | (3,124) | ||||||
Total equity attributable to equity shareholders of the Company | (3,124) | ||||||
Non-controlling interests | (338) | ||||||
Total equity | (3,462) | ||||||
IFRS Sixteen [Member] | Reclassification [member] | |||||||
Disclosure Of Impact Of Ifrs Sixteen On The Financial Position [Line Items] | |||||||
Property, plant and equipment, net | (88,880) | ||||||
Right-of-use assets | 91,914 | ||||||
Lease prepayments | (2,970) | ||||||
Other assets | (210) | ||||||
Total non-current assets | (146) | ||||||
Lease liabilities | 9,952 | ||||||
Current portion of obligation under finance leases | (9,555) | ||||||
Accrued expenses | (397) | ||||||
Total assets less current liabilities | (146) | ||||||
Lease liabilities | 62,666 | ||||||
Obligations under finance leases | (62,666) | ||||||
Deferred benefits and gains | (146) | ||||||
Total non-current liabilities | ¥ (146) | ||||||
IFRS Sixteen [Member] | Carrying amount [member] | |||||||
Disclosure Of Impact Of Ifrs Sixteen On The Financial Position [Line Items] | |||||||
Property, plant and equipment, net | ¥ 81,812 | ||||||
Right-of-use assets | 137,351 | ||||||
Interest in associates | 2,654 | ||||||
Deferred tax assets | 2,283 | ||||||
Other assets | 1,566 | ||||||
Total non-current assets | 268,358 | ||||||
Prepaid expenses and other current assets | 2,848 | ||||||
Total current assets | 23,261 | ||||||
Lease liabilities | 16,921 | ||||||
Accrued expenses | 15,202 | ||||||
Total current liabilities | 90,573 | ||||||
Net current liabilities | 67,312 | ||||||
Total assets less current liabilities | 201,046 | ||||||
Lease liabilities | 103,456 | ||||||
Provision for major overhauls | 3,611 | ||||||
Deferred benefits and gains | 760 | ||||||
Deferred tax liabilities | 498 | ||||||
Total non-current liabilities | 126,039 | ||||||
Net assets | 75,007 | ||||||
Reserves | 49,866 | ||||||
Total equity attributable to equity shareholders of the Company | 62,133 | ||||||
Non-controlling interests | 12,874 | ||||||
Total equity | ¥ 75,007 | ||||||
[1] | The Group has initially applied IFRS 16 at January 1, 2019 using the modified retrospective approach. Under this approach, comparative information is not restated. See Note 2(b). | ||||||
[2] | The Group has initially applied IFRS 15 and IFRS 9 at January 1, 2018. Under the transition methods chosen, comparative information is not restated. See Note 2(b). |
Significant Accounting Polici_6
Significant Accounting Policies - Summary of Estimated Impact on the Adoption of IFRS 16 on the Operating Results and the Financial Results Including Cash Flow (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | [1] | ||
Financial result for the year ended December 31, 2019 impacted by the adoption of IFRS 16 | |||||
Operating profit | ¥ 10,838 | ¥ 8,819 | [1] | ¥ 9,156 | [2] |
Interest expense | 5,845 | 3,202 | [1] | 2,747 | [2] |
Exchange loss, net | (1,477) | (1,853) | [1] | 1,801 | [2] |
Share of associates' results | (178) | 263 | [1] | 431 | [2] |
Profit before income tax | 4,055 | 4,364 | [1],[3] | 8,874 | [2],[3] |
Profit for the year | 3,084 | 3,364 | [1] | 6,898 | [2] |
Line items in the consolidated cash flow statement for the year ended December 31, 2019 impacted by the adoption of IFRS 16: | |||||
Cash generated from operating activities | 39,728 | 21,174 | [1] | 23,478 | |
Interest paid | (7,014) | (4,255) | [1] | (3,758) | |
Net cash generated from operating activities | 31,175 | 15,388 | [1] | 17,732 | |
Net cash (used in)/generated from financing activities | (21,833) | 5,220 | [1] | ¥ (6,796) | |
Amounts reported under IFRS 16 [Member] | IFRS Sixteen [Member] | |||||
Financial result for the year ended December 31, 2019 impacted by the adoption of IFRS 16 | |||||
Operating profit | 10,838 | ||||
Interest expense | (5,845) | ||||
Exchange loss, net | (1,477) | ||||
Share of associates' results | (178) | ||||
Profit before income tax | 4,055 | ||||
Profit for the year | 3,084 | ||||
Line items in the consolidated cash flow statement for the year ended December 31, 2019 impacted by the adoption of IFRS 16: | |||||
Cash generated from operating activities | 39,728 | ||||
Interest paid | (7,014) | ||||
Net cash generated from operating activities | 31,175 | ||||
Capital element of lease rentals paid | (17,784) | ||||
Net cash (used in)/generated from financing activities | (21,833) | ||||
Depreciation, maintenance and interest expenses under IFRS 16 [Member] | IFRS Sixteen [Member] | |||||
Financial result for the year ended December 31, 2019 impacted by the adoption of IFRS 16 | |||||
Operating profit | 7,580 | ||||
Interest expense | 2,380 | ||||
Exchange loss, net | 756 | ||||
Share of associates' results | 0 | ||||
Profit before income tax | 10,716 | ||||
Profit for the year | 10,716 | ||||
Difference in shares of associates between IAS 17 And IFRS 16 [Member] | IFRS Sixteen [Member] | |||||
Financial result for the year ended December 31, 2019 impacted by the adoption of IFRS 16 | |||||
Operating profit | 0 | ||||
Interest expense | 0 | ||||
Exchange loss, net | 0 | ||||
Share of associates' results | 216 | ||||
Profit before income tax | 216 | ||||
Profit for the year | 216 | ||||
Estimated amounts related to operating leases as if under IAS 17 [Member] | IFRS Sixteen [Member] | |||||
Financial result for the year ended December 31, 2019 impacted by the adoption of IFRS 16 | |||||
Operating profit | 9,491 | ||||
Interest expense | 0 | ||||
Exchange loss, net | 0 | ||||
Share of associates' results | 0 | ||||
Profit before income tax | 9,491 | ||||
Profit for the year | 9,491 | ||||
Line items in the consolidated cash flow statement for the year ended December 31, 2019 impacted by the adoption of IFRS 16: | |||||
Cash generated from operating activities | (9,491) | ||||
Interest paid | 2,380 | ||||
Net cash generated from operating activities | (7,111) | ||||
Capital element of lease rentals paid | 7,111 | ||||
Net cash (used in)/generated from financing activities | 7,111 | ||||
Previously stated [member] | |||||
Financial result for the year ended December 31, 2019 impacted by the adoption of IFRS 16 | |||||
Profit before income tax | 4,237 | ||||
Profit for the year | 3,269 | ||||
Previously stated [member] | IFRS Sixteen [Member] | |||||
Financial result for the year ended December 31, 2019 impacted by the adoption of IFRS 16 | |||||
Operating profit | 8,927 | ||||
Interest expense | (3,465) | ||||
Exchange loss, net | (721) | ||||
Share of associates' results | 38 | ||||
Profit before income tax | 5,496 | ||||
Profit for the year | 4,525 | ||||
Line items in the consolidated cash flow statement for the year ended December 31, 2019 impacted by the adoption of IFRS 16: | |||||
Cash generated from operating activities | 30,237 | ||||
Interest paid | (4,634) | ||||
Net cash generated from operating activities | 24,064 | ||||
Capital element of lease rentals paid | (10,673) | ||||
Net cash (used in)/generated from financing activities | ¥ (14,722) | ||||
Compared to amounts reported for 2018 under IAS 17 [Member] | IFRS Sixteen [Member] | |||||
Financial result for the year ended December 31, 2019 impacted by the adoption of IFRS 16 | |||||
Operating profit | 8,819 | ||||
Interest expense | (3,202) | ||||
Exchange loss, net | (1,853) | ||||
Share of associates' results | 263 | ||||
Profit before income tax | 4,364 | ||||
Profit for the year | 3,364 | ||||
Line items in the consolidated cash flow statement for the year ended December 31, 2019 impacted by the adoption of IFRS 16: | |||||
Cash generated from operating activities | 21,174 | ||||
Interest paid | (4,255) | ||||
Net cash generated from operating activities | 15,388 | ||||
Capital element of lease rentals paid | (10,433) | ||||
Net cash (used in)/generated from financing activities | ¥ 5,220 | ||||
[1] | The Group has initially applied IFRS 16 at January 1, 2019 using the modified retrospective approach. Under this approach, comparative information is not restated. See Note 2(b). | ||||
[2] | The Group has initially applied IFRS 15 and IFRS 9 at January 1, 2018. Under the transition methods chosen, comparative information is not restated. See Note 2(b). | ||||
[3] | The Group has initially applied IFRS 16 using the modified retrospective approach and adjusted the opening balances at January 1, 2019 to recognize right-of-use assets and lease liabilities relating to leases which were previously classified as operating leases under IAS 17. In the comparative periods in 2018 and 2017, cash payments under operating leases made by the Group as a lessee of RMB9,920 million and RMB8,996 million, respectively, were included in operating cash outflows in the consolidated cash flow statements. Under IFRS 16, except for short-term lease payments and payments for leases of low value assets not included in the measurement of lease liabilities, all other rentals paid on leases are now split into capital element and interest element and classified as financing cash outflows and operating cash outflows, respectively. Under the modified retrospective approach, the comparative information is not restated. Further details on the impact of the transition to IFRS 16 are set out in Note 2(b). |
Significant Accounting Polici_7
Significant Accounting Policies - Summary of Impact of Transition to IFRS 9 on Retained Earnings and Reserves and Related Tax Impact (Detail) - IFRS 9 [member] ¥ in Millions | Jan. 01, 2018CNY (¥) |
Retained earnings [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Transferred from fair value reserve (recycling) relating to financial assets now measured at fair value through profit or loss (FVPL) | ¥ 30 |
Remeasurement of other investments in equity securities now measured at FVPL at January 1, 2018 | 23 |
Related tax | (5) |
Effect of the above changes on non-controlling interests | (8) |
Net increase in retained earnings at January 1, 2018 | 40 |
Fair value reserve (recycling) [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Transferred to retained earnings relating to financial assets now measured at FVPL | (30) |
Transferred to fair value reserve (non-recycling) relating to equity securities now measured at fair value through other comprehensive income(FVOCI) | (210) |
Net decrease in fair value reserve (recycling) at January 1, 2018 | (240) |
Fair value reserve (non-recycling) [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Transfer and remeasurement effect of other investments in equity securities now measured at FVOCI at January 1, 2018 | 334 |
Related tax | (31) |
Net increase in fair value reserve (non-recycling) at January 1, 2018 | 303 |
Non-controlling interests [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Remeasurement of other investments in equity securities now measured at FVPL in non-controlling interests at January 1, 2018 | ¥ 8 |
Significant Accounting Polici_8
Significant Accounting Policies - Summary of Original Measurement Categories for Each Class of Financial Assets Under IAS 39 and Reconciles Carrying Amounts of Financial Assets Determined in Accordance with IAS 39 to those Determined in Accordance with IFRS 9 (Detail) - CNY (¥) ¥ in Millions | Jan. 01, 2018 | Dec. 31, 2017 |
IAS 39 carrying amount [member] | Financial assets measured at FVOCI (non recyclable) [member] | Other equity instrument investment [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Other equity instrument investments | ¥ 0 | |
IAS 39 carrying amount [member] | Financial Assets Carried At FVPL [member] | Other non-current financial assets [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Other non-current financial assets | 0 | |
IAS 39 carrying amount [member] | Financial assets classified as available for sale under IAS 39 [member] | Available for sale financial assets [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets classified as available-for-sale under IAS 39 | 622 | |
IAS 39 carrying amount [member] | Financial assets classified as available for sale under IAS 39 [member] | Other investments in equity securities [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets classified as available-for-sale under IAS 39 | ¥ 103 | |
Reclassification [member] | Financial assets measured at FVOCI (non recyclable) [member] | Other equity instrument investment [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Other equity instrument investments | ¥ 637 | |
Reclassification [member] | Financial Assets Carried At FVPL [member] | Other non-current financial assets [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Other non-current financial assets | 88 | |
Reclassification [member] | Financial assets classified as available for sale under IAS 39 [member] | Available for sale financial assets [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets classified as available-for-sale under IAS 39 | (622) | |
Reclassification [member] | Financial assets classified as available for sale under IAS 39 [member] | Other investments in equity securities [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets classified as available-for-sale under IAS 39 | (103) | |
Remeasurement [member] | Financial assets measured at FVOCI (non recyclable) [member] | Other equity instrument investment [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Other equity instrument investments | 124 | |
Remeasurement [member] | Financial Assets Carried At FVPL [member] | Other non-current financial assets [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Other non-current financial assets | 23 | |
Remeasurement [member] | Financial assets classified as available for sale under IAS 39 [member] | Available for sale financial assets [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets classified as available-for-sale under IAS 39 | 0 | |
Remeasurement [member] | Financial assets classified as available for sale under IAS 39 [member] | Other investments in equity securities [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets classified as available-for-sale under IAS 39 | 0 | |
IFRS 9 [member] | Financial assets measured at FVOCI (non recyclable) [member] | Other equity instrument investment [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Other equity instrument investments | 761 | |
IFRS 9 [member] | Financial Assets Carried At FVPL [member] | Other non-current financial assets [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Other non-current financial assets | 111 | |
IFRS 9 [member] | Financial assets classified as available for sale under IAS 39 [member] | Available for sale financial assets [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets classified as available-for-sale under IAS 39 | 0 | |
IFRS 9 [member] | Financial assets classified as available for sale under IAS 39 [member] | Other investments in equity securities [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets classified as available-for-sale under IAS 39 | ¥ 0 |
Significant Accounting Polici_9
Significant Accounting Policies - Summary of Impact of Transition to IFRS 15 on Total Equity (Detail) - CNY (¥) ¥ in Millions | Jan. 01, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | [1],[2] | Dec. 31, 2016 | |
Disclosure of equity [line items] | |||||||
Total equity | ¥ 77,329 | ¥ 78,469 | [1] | ¥ 62,543 | ¥ 54,976 | ||
Attributable to equity shareholders of the Company | 64,106 | 65,257 | [1] | ||||
Non-controlling interests | ¥ 13,223 | 13,212 | [1] | ||||
Difference: Estimated impact of adoption of IFRS 15 on 2018 [member] | |||||||
Disclosure of equity [line items] | |||||||
Earlier recognition of ticket breakage revenue | ¥ 682 | ||||||
Change in measurement of revenue under frequent flyer award programs | 89 | ||||||
Related income tax | (192) | ||||||
Total equity | 579 | (674) | |||||
Attributable to equity shareholders of the Company | 526 | (616) | |||||
Non-controlling interests | ¥ 53 | ¥ (58) | |||||
[1] | The Group has initially applied IFRS 16 at January 1, 2019 using the modified retrospective approach. Under this approach, comparative information is not restated. See Note 2(b). | ||||||
[2] | The Group has initially applied IFRS 15 and IFRS 9 at January 1, 2018. Under the transition methods chosen, comparative information is not restated. See Note 2(b). |
Significant Accounting Polic_10
Significant Accounting Policies - Additional Information (Detail) - CNY (¥) ¥ in Millions | Jan. 01, 2018 | Dec. 31, 2018 |
Difference: Estimated impact of adoption of IFRS 15 on 2018 [member] | ||
Disclosure of significant accounting policies [line items] | ||
Revenue from ticket breakage | ¥ 698 | |
Change fees | 655 | |
Difference: Estimated impact of adoption of IFRS 15 on 2018 [member] | Timing of revenue recognition [member] | ||
Disclosure of significant accounting policies [line items] | ||
Increased retained earnings | ¥ 460 | |
Increased non-controlling interests | 52 | |
Offsetting tax impact | 170 | |
Increase in revenue | 57 | |
Difference: Estimated impact of adoption of IFRS 15 on 2018 [member] | Frequent flyer award programmes [member] | ||
Disclosure of significant accounting policies [line items] | ||
Increased retained earnings | 66 | |
Increased non-controlling interests | 1 | |
Offsetting tax impact | ¥ 22 | |
Increase in revenue | ¥ 70 | |
Bottom of range [member] | ||
Disclosure of significant accounting policies [line items] | ||
Lease rent term | 30 years | |
Top of range [member] | ||
Disclosure of significant accounting policies [line items] | ||
Lease rent term | 70 years | |
Components related to overhaul costs [member] | Bottom of range [member] | ||
Disclosure of significant accounting policies [line items] | ||
Estimated useful lives for depreciation using straight line method | 3 years | |
Components related to overhaul costs [member] | Top of range [member] | ||
Disclosure of significant accounting policies [line items] | ||
Estimated useful lives for depreciation using straight line method | 12 years |
Significant Accounting Polic_11
Significant Accounting Policies - Summary of Estimated Impact of Adoption of IFRS 15 (Detail) - CNY (¥) ¥ / shares in Units, ¥ in Millions | 12 Months Ended | ||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2018 | Dec. 31, 2016 | |||
Disclosure of equity [line items] | |||||||
Traffic revenue | ¥ 148,117 | ¥ 138,064 | [1] | ¥ 121,873 | [1],[2] | ||
Other operating revenue | 6,205 | 5,559 | [1] | 5,933 | [1],[2] | ||
Total operating revenue | 154,322 | 143,623 | [1] | 127,806 | [1],[2] | ||
Profit before income tax | 4,055 | 4,364 | [1],[3] | 8,874 | [1],[2],[3] | ||
Income tax | 971 | 1,000 | [1] | 1,976 | [1],[2] | ||
Profit for the year | 3,084 | 3,364 | [1] | 6,898 | [1],[2] | ||
Profit attributable to: Equity shareholders of the Company | 2,640 | 2,895 | [1] | 5,961 | [1],[2] | ||
Non-controlling interests | 444 | 469 | [1] | 937 | [1],[2] | ||
Earnings per share | |||||||
Total comprehensive income for the year | 3,001 | 3,619 | [1] | 7,011 | [1],[2] | ||
Total comprehensive income attributable to: Equity shareholders of the Company | 2,552 | 3,048 | [1] | 6,028 | [1],[2] | ||
Non-controlling interests | 449 | 571 | [1] | 983 | [1],[2] | ||
Deferred tax assets | 2,692 | 1,566 | [1] | ||||
Non-current assets | 290,190 | 222,877 | [1] | ||||
Contract liabilities | (3,331) | (3,711) | (3,261) | ||||
Sales in advance of carriage | 10,303 | 8,594 | [1] | ||||
Current income tax | 563 | 369 | [1] | ||||
Total current liabilities | (95,490) | (83,687) | [1] | ||||
Total assets less current liabilities | 163,262 | ||||||
Other non-current liabilities | (1,782) | (2,036) | [1] | ||||
Total non-current liabilities | (134,109) | (84,793) | [1] | ||||
Reserves | 51,839 | 52,990 | [1] | ||||
Total equity attributable to equity shareholders of the Company | 64,106 | 65,257 | [1] | ||||
Non-controlling interests | 13,223 | 13,212 | [1] | ||||
Total equity | 77,329 | 78,469 | [1] | 62,543 | [1],[2] | ¥ 54,976 | |
Profit before income tax | 4,055 | 4,364 | [1],[3] | 8,874 | [1],[2],[3] | ||
(Increase)/decrease in sales in advance of carriage | 1,709 | 1,441 | [3] | (567) | [2],[3] | ||
(Increase)/decrease in deferred revenue | ¥ 73 | (147) | [3] | ¥ 362 | [2],[3] | ||
Amounts reported in accordance with IFRS 15 [member] | |||||||
Disclosure of equity [line items] | |||||||
Traffic revenue | 138,064 | ||||||
Other operating revenue | 5,559 | ||||||
Total operating revenue | 143,623 | ||||||
Profit before income tax | 4,364 | ||||||
Income tax | (1,000) | ||||||
Profit for the year | 3,364 | ||||||
Profit attributable to: Equity shareholders of the Company | 2,895 | ||||||
Non-controlling interests | ¥ 469 | ||||||
Earnings per share | |||||||
Basic and diluted | ¥ 0.27 | ||||||
Total comprehensive income for the year | ¥ 3,619 | ||||||
Total comprehensive income attributable to: Equity shareholders of the Company | 3,048 | ||||||
Non-controlling interests | 571 | ||||||
Deferred tax assets | 1,566 | ||||||
Non-current assets | 222,877 | ||||||
Contract liabilities | (1,693) | ||||||
Sales in advance of carriage | (8,594) | ||||||
Deferred revenue | 0 | ||||||
Current income tax | (369) | ||||||
Total current liabilities | (83,687) | ||||||
Total assets less current liabilities | 163,262 | ||||||
Deferred revenue | 0 | ||||||
Other non-current liabilities | (2,036) | ||||||
Total non-current liabilities | (84,793) | ||||||
Reserves | (52,990) | ||||||
Total equity attributable to equity shareholders of the Company | (65,257) | ||||||
Non-controlling interests | (13,212) | ||||||
Total equity | (78,469) | ||||||
Profit before income tax | 4,364 | ||||||
Increase in contract liabilities | 232 | ||||||
(Increase)/decrease in sales in advance of carriage | 1,441 | ||||||
(Increase)/decrease in deferred revenue | 0 | ||||||
Increase in other non-current liabilities | 218 | ||||||
Hypothetical Amounts under IASs 18 and 11 [member] | |||||||
Disclosure of equity [line items] | |||||||
Traffic revenue | 136,641 | ||||||
Other operating revenue | 6,855 | ||||||
Total operating revenue | 143,496 | ||||||
Profit before income tax | 4,237 | ||||||
Income tax | (968) | ||||||
Profit for the year | 3,269 | ||||||
Profit attributable to: Equity shareholders of the Company | 2,805 | ||||||
Non-controlling interests | ¥ 464 | ||||||
Earnings per share | |||||||
Basic and diluted | ¥ 0.26 | ||||||
Total comprehensive income for the year | ¥ 3,524 | ||||||
Total comprehensive income attributable to: Equity shareholders of the Company | 2,958 | ||||||
Non-controlling interests | 566 | ||||||
Deferred tax assets | 1,570 | ||||||
Non-current assets | 222,881 | ||||||
Contract liabilities | 0 | ||||||
Sales in advance of carriage | (9,357) | ||||||
Deferred revenue | (1,808) | ||||||
Current income tax | (130) | ||||||
Total current liabilities | (84,326) | ||||||
Total assets less current liabilities | 162,627 | ||||||
Deferred revenue | (2,057) | ||||||
Other non-current liabilities | (18) | ||||||
Total non-current liabilities | (84,832) | ||||||
Reserves | (52,374) | ||||||
Total equity attributable to equity shareholders of the Company | (64,641) | ||||||
Non-controlling interests | (13,154) | ||||||
Total equity | (77,795) | ||||||
Profit before income tax | 4,237 | ||||||
Increase in contract liabilities | 0 | ||||||
(Increase)/decrease in sales in advance of carriage | 1,504 | ||||||
(Increase)/decrease in deferred revenue | 514 | ||||||
Increase in other non-current liabilities | 0 | ||||||
Difference: Estimated impact of adoption of IFRS 15 on 2018 [member] | |||||||
Disclosure of equity [line items] | |||||||
Traffic revenue | 1,423 | ||||||
Other operating revenue | (1,296) | ||||||
Total operating revenue | 127 | ||||||
Profit before income tax | 127 | ||||||
Income tax | (32) | ||||||
Profit for the year | 95 | ||||||
Profit attributable to: Equity shareholders of the Company | 90 | ||||||
Non-controlling interests | ¥ 5 | ||||||
Earnings per share | |||||||
Basic and diluted | ¥ 0.01 | ||||||
Total comprehensive income for the year | ¥ 95 | ||||||
Total comprehensive income attributable to: Equity shareholders of the Company | 90 | ||||||
Non-controlling interests | 5 | ||||||
Deferred tax assets | (4) | ||||||
Non-current assets | (4) | ||||||
Contract liabilities | (1,693) | ||||||
Sales in advance of carriage | 763 | ||||||
Deferred revenue | 1,808 | ||||||
Current income tax | (239) | ||||||
Total current liabilities | 639 | ||||||
Total assets less current liabilities | 635 | ||||||
Deferred revenue | 2,057 | ||||||
Other non-current liabilities | (2,018) | ||||||
Total non-current liabilities | 39 | ||||||
Reserves | (616) | ||||||
Total equity attributable to equity shareholders of the Company | (616) | ¥ 526 | |||||
Non-controlling interests | (58) | 53 | |||||
Total equity | (674) | ¥ 579 | |||||
Profit before income tax | 127 | ||||||
Increase in contract liabilities | 232 | ||||||
(Increase)/decrease in sales in advance of carriage | (63) | ||||||
(Increase)/decrease in deferred revenue | (514) | ||||||
Increase in other non-current liabilities | ¥ 218 | ||||||
[1] | The Group has initially applied IFRS 16 at January 1, 2019 using the modified retrospective approach. Under this approach, comparative information is not restated. See Note 2(b). | ||||||
[2] | The Group has initially applied IFRS 15 and IFRS 9 at January 1, 2018. Under the transition methods chosen, comparative information is not restated. See Note 2(b). | ||||||
[3] | The Group has initially applied IFRS 16 using the modified retrospective approach and adjusted the opening balances at January 1, 2019 to recognize right-of-use assets and lease liabilities relating to leases which were previously classified as operating leases under IAS 17. In the comparative periods in 2018 and 2017, cash payments under operating leases made by the Group as a lessee of RMB9,920 million and RMB8,996 million, respectively, were included in operating cash outflows in the consolidated cash flow statements. Under IFRS 16, except for short-term lease payments and payments for leases of low value assets not included in the measurement of lease liabilities, all other rentals paid on leases are now split into capital element and interest element and classified as financing cash outflows and operating cash outflows, respectively. Under the modified retrospective approach, the comparative information is not restated. Further details on the impact of the transition to IFRS 16 are set out in Note 2(b). |
Significant Accounting Polic_12
Significant Accounting Policies - Estimated Useful Lives for Depreciation Using Straight Line Method of Other Property, Plant and Equipment (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
Buildings [member] | Bottom of range [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives for depreciation using straight line method | 5 years |
Buildings [member] | Top of range [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives for depreciation using straight line method | 35 years |
Owned aircraft [member] | Bottom of range [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives for depreciation using straight line method | 15 years |
Owned aircraft [member] | Top of range [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives for depreciation using straight line method | 20 years |
Jet engines [member] | Bottom of range [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives for depreciation using straight line method | 15 years |
Jet engines [member] | Top of range [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives for depreciation using straight line method | 20 years |
Other flight equipment, including rotables [member] | Bottom of range [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives for depreciation using straight line method | 3 years |
Other flight equipment, including rotables [member] | Top of range [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives for depreciation using straight line method | 15 years |
Machinery and equipment [member] | Bottom of range [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives for depreciation using straight line method | 4 years |
Machinery and equipment [member] | Top of range [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives for depreciation using straight line method | 10 years |
Financial Risk Management and_3
Financial Risk Management and Fair Values - Additional Information (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Disclosure of detailed information about financial instruments [line items] | |||||
Amount of current liabilities exceeding current assets | ¥ 78,752 | ¥ (59,615) | |||
Net cash generated from operating activities | 31,175 | 15,388 | [1] | ¥ 17,732 | [1] |
Net cash used in investing activities | (14,427) | (20,517) | [1] | (8,236) | [1] |
Net cash generated from/(used in) financing activities | (21,833) | 5,220 | [1] | (6,796) | [1] |
Net increase/(decrease) in cash and cash equivalents | (5,085) | 91 | [1] | 2,700 | [1] |
Approximate maximum amount available of banking facilities with PRC banks and financial institutions for providing bank financing | 308,343 | ||||
Approximate unutilized bank financing | 251,165 | ||||
Trade receivables | ¥ 3,152 | ¥ 2,901 | [1] | ||
Debt ratio | 75.00% | 68.00% | |||
Other trade receivables [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Credit loss allowance for other trade receivables | ¥ 7 | ¥ 8 | |||
Billing and Settlement Plan agents [Member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Trade receivables | 984 | 955 | |||
100 basis points increase in interest rates [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Increase/(decrease) on profit after tax and retained profits | (559) | (539) | (530) | ||
100 basis points decrease in interest rates [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Increase/(decrease) on profit after tax and retained profits | 559 | 539 | 530 | ||
10 percent increase in jet fuel price [Member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Increase/(decrease) on fuel cost | 4,281 | 4,292 | 3,190 | ||
10 percent decrease in jet fuel price [Member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Increase/(decrease) on fuel cost | ¥ (4,281) | ¥ (4,292) | ¥ (3,190) | ||
[1] | The Group has initially applied IFRS 16 at January 1, 2019 using the modified retrospective approach. Under this approach, comparative information is not restated. See Note 2(b). |
Financial Risk Management and_4
Financial Risk Management and Fair Values - Remaining Contractual Maturities of Non-derivative Financial Liabilities Based on Contractual Undiscounted Cash Flows (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||||
Borrowings, Contractual undiscounted cash outflow | ¥ 53,282 | ¥ 56,916 | |||
Lease liabilities, Contractual undiscounted cash outflow | 157,081 | ||||
Obligations under finance leases, Contractual undiscounted cash outflow | 82,765 | ||||
Trade and other payables and accrued charges, Contractual undiscounted cash outflow | 21,300 | 21,292 | |||
Non-derivative financial liabilities, Total contractual undiscounted cash outflow | 231,663 | 160,973 | |||
Borrowings, Carrying amount | 51,180 | 54,417 | [1] | ||
Lease liabilities, Carrying amount | 134,074 | ¥ 120,377 | 72,221 | ||
Obligations under finance leases, Carrying amount | [1] | 72,221 | |||
Trade and other payables and accrued charges, Carrying amount | 21,300 | 21,292 | [1] | ||
Non-derivative financial liabilities, Total carrying amount | 206,554 | 147,930 | [1] | ||
Within 1 year [member] | |||||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||||
Borrowings, Contractual undiscounted cash outflow | 38,304 | 40,121 | |||
Lease liabilities, Contractual undiscounted cash outflow | 25,404 | ||||
Obligations under finance leases, Contractual undiscounted cash outflow | 12,062 | ||||
Trade and other payables and accrued charges, Contractual undiscounted cash outflow | 21,300 | 21,292 | |||
Non-derivative financial liabilities, Total contractual undiscounted cash outflow | 85,008 | 73,475 | |||
Borrowings, Carrying amount | 37,543 | 38,741 | |||
Obligations under finance leases, Carrying amount | 9,555 | ||||
After 1 year but within 2 years [member] | |||||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||||
Borrowings, Contractual undiscounted cash outflow | 4,251 | 8,272 | |||
Lease liabilities, Contractual undiscounted cash outflow | 23,860 | ||||
Obligations under finance leases, Contractual undiscounted cash outflow | 11,738 | ||||
Trade and other payables and accrued charges, Contractual undiscounted cash outflow | 0 | 0 | |||
Non-derivative financial liabilities, Total contractual undiscounted cash outflow | 28,111 | 20,010 | |||
Borrowings, Carrying amount | 3,773 | 7,757 | |||
Obligations under finance leases, Carrying amount | 9,572 | ||||
After 2 years but within 5 years [member] | |||||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||||
Borrowings, Contractual undiscounted cash outflow | 8,720 | 6,335 | |||
Lease liabilities, Contractual undiscounted cash outflow | 63,003 | ||||
Obligations under finance leases, Contractual undiscounted cash outflow | 36,765 | ||||
Trade and other payables and accrued charges, Contractual undiscounted cash outflow | 0 | 0 | |||
Non-derivative financial liabilities, Total contractual undiscounted cash outflow | 71,723 | 43,100 | |||
Borrowings, Carrying amount | 8,389 | 6,004 | |||
Obligations under finance leases, Carrying amount | 32,285 | ||||
After 5 years [member] | |||||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||||
Borrowings, Contractual undiscounted cash outflow | 2,007 | 2,188 | |||
Lease liabilities, Contractual undiscounted cash outflow | 44,814 | ||||
Obligations under finance leases, Contractual undiscounted cash outflow | 22,200 | ||||
Trade and other payables and accrued charges, Contractual undiscounted cash outflow | 0 | 0 | |||
Non-derivative financial liabilities, Total contractual undiscounted cash outflow | 46,821 | 24,388 | |||
Borrowings, Carrying amount | ¥ 1,475 | 1,915 | |||
Obligations under finance leases, Carrying amount | ¥ 20,809 | ||||
[1] | The Group has initially applied IFRS 16 at January 1, 2019 using the modified retrospective approach. Under this approach, comparative information is not restated. See Note 2(b). |
Financial Risk Management and_5
Financial Risk Management and Fair Values - Sensitivity Analysis of Significant Foreign Exchange Rates and Impact on Profit after Tax and Retained Profits (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
1 percent appreciation of Renminbi against foreign currency [member] | USD [member] | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Appreciation/ (depreciation) of Remninbi against foreign currency | 1.00% | 1.00% | 1.00% |
Increase/(decrease) on profit after tax and retained profits | ¥ 434 | ¥ 195 | ¥ 278 |
1 percent appreciation of Renminbi against foreign currency [member] | EURO [member] | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Appreciation/ (depreciation) of Remninbi against foreign currency | 1.00% | 1.00% | 1.00% |
Increase/(decrease) on profit after tax and retained profits | ¥ 26 | ¥ 28 | ¥ 31 |
1 percent depreciation of Renminbi against foreign currency [member] | USD [member] | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Appreciation/ (depreciation) of Remninbi against foreign currency | (1.00%) | (1.00%) | (1.00%) |
Increase/(decrease) on profit after tax and retained profits | ¥ (434) | ¥ (195) | ¥ (278) |
1 percent depreciation of Renminbi against foreign currency [member] | EURO [member] | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Appreciation/ (depreciation) of Remninbi against foreign currency | (1.00%) | (1.00%) | (1.00%) |
Increase/(decrease) on profit after tax and retained profits | ¥ (26) | ¥ (28) | ¥ (31) |
10 percent appreciation of Renminbi against foreign currency [member] | JPY [member] | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Appreciation/ (depreciation) of Remninbi against foreign currency | 10.00% | 10.00% | 10.00% |
Increase/(decrease) on profit after tax and retained profits | ¥ 94 | ¥ 103 | ¥ 116 |
10 percent depreciation of Renminbi against foreign currency [member] | JPY [member] | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Appreciation/ (depreciation) of Remninbi against foreign currency | (10.00%) | (10.00%) | (10.00%) |
Increase/(decrease) on profit after tax and retained profits | ¥ (94) | ¥ (103) | ¥ (116) |
Financial Risk Management and_6
Financial Risk Management and Fair Values - Disclosure of Exposure to Credit Risk and Expected Credit Losses for Air Ticket Receivables (Detail) - Trade receivables [member] - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of credit risk exposure [line items] | |||
Loss allowance | ¥ 36 | ¥ 36 | ¥ 37 |
Within 3 month [member] | |||
Disclosure of credit risk exposure [line items] | |||
Expected loss rate % | 0.01% | 0.01% | |
More than 3 month but less than 1 year [member] | |||
Disclosure of credit risk exposure [line items] | |||
Expected loss rate % | 50.00% | 50.00% | |
After 1 year but within 2 years [member] | |||
Disclosure of credit risk exposure [line items] | |||
Expected loss rate % | 100.00% | 100.00% | |
More than 2 years but less than 3 years [member] | |||
Disclosure of credit risk exposure [line items] | |||
Expected loss rate % | 100.00% | 100.00% | |
More than 3 years [member] | |||
Disclosure of credit risk exposure [line items] | |||
Expected loss rate % | 100.00% | 100.00% | |
Gross carrying amount [member] | |||
Disclosure of credit risk exposure [line items] | |||
Gross carrying amount | ¥ 1,911 | ¥ 1,972 | |
Gross carrying amount [member] | Within 3 month [member] | |||
Disclosure of credit risk exposure [line items] | |||
Gross carrying amount | 1,877 | 1,940 | |
Gross carrying amount [member] | More than 3 month but less than 1 year [member] | |||
Disclosure of credit risk exposure [line items] | |||
Gross carrying amount | 11 | 8 | |
Gross carrying amount [member] | After 1 year but within 2 years [member] | |||
Disclosure of credit risk exposure [line items] | |||
Gross carrying amount | 7 | 2 | |
Gross carrying amount [member] | More than 2 years but less than 3 years [member] | |||
Disclosure of credit risk exposure [line items] | |||
Gross carrying amount | 0 | 6 | |
Gross carrying amount [member] | More than 3 years [member] | |||
Disclosure of credit risk exposure [line items] | |||
Gross carrying amount | 16 | 16 | |
Loss allowance [member] | |||
Disclosure of credit risk exposure [line items] | |||
Loss allowance | 29 | 28 | |
Loss allowance [member] | Within 3 month [member] | |||
Disclosure of credit risk exposure [line items] | |||
Loss allowance | 0 | 0 | |
Loss allowance [member] | More than 3 month but less than 1 year [member] | |||
Disclosure of credit risk exposure [line items] | |||
Loss allowance | 6 | 4 | |
Loss allowance [member] | After 1 year but within 2 years [member] | |||
Disclosure of credit risk exposure [line items] | |||
Loss allowance | 7 | 2 | |
Loss allowance [member] | More than 2 years but less than 3 years [member] | |||
Disclosure of credit risk exposure [line items] | |||
Loss allowance | 0 | 6 | |
Loss allowance [member] | More than 3 years [member] | |||
Disclosure of credit risk exposure [line items] | |||
Loss allowance | ¥ 16 | ¥ 16 |
Financial Risk Management and_7
Financial Risk Management and Fair Values - Schedule of Movement in the Allowances for Loan Losses (Detail) - Trade receivables [member] - CNY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of financial assets [line items] | ||
Beginning balance | ¥ 36 | ¥ 37 |
Amounts written off during the year | (11) | (2) |
Impairment losses written back | (1) | (4) |
Impairment losses recognized during the year | 12 | 5 |
Ending balance | ¥ 36 | ¥ 36 |
Financial Risk Management and_8
Financial Risk Management and Fair Values - Carrying Value of Financial Instruments Measured at Fair Value on a Recurring Basis (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of fair value measurement of assets [line items] | ||||
Other non-current financial assets | ¥ 1,979 | ¥ 1,776 | [1] | ¥ 1,394 |
Other financial assets | 0 | 440 | [1] | |
Derivative financial assets | 218 | 0 | [1] | |
Derivative financial liabilities | 0 | (44) | [1] | |
Recurring fair value measurement [member] | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Other financial assets | 440 | |||
Recurring fair value measurement [member] | Non listed shares [member] | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Other equity instruments investments | 188 | 234 | ||
Other non-current financial assets | 32 | 32 | ||
Recurring fair value measurement [member] | Non-tradable shares [member] | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Other equity instruments investments | 861 | 846 | ||
Recurring fair value measurement [member] | Listed shares [member] | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Other non-current financial assets | 74 | 71 | ||
Recurring fair value measurement [member] | Interest rate swaps [member] | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Derivative financial assets | 3 | 75 | ||
Recurring fair value measurement [member] | Cross Currency Swaps [member] | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Derivative financial liabilities | 187 | (44) | ||
Recurring fair value measurement [member] | Forward foreign exchange contracts [Member] | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Derivative financial assets | 31 | |||
Level 1 [Member] | Recurring fair value measurement [member] | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Other financial assets | 0 | |||
Level 1 [Member] | Recurring fair value measurement [member] | Non listed shares [member] | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Other equity instruments investments | 0 | 0 | ||
Other non-current financial assets | 0 | 0 | ||
Level 1 [Member] | Recurring fair value measurement [member] | Non-tradable shares [member] | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Other equity instruments investments | 0 | 0 | ||
Level 1 [Member] | Recurring fair value measurement [member] | Listed shares [member] | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Other non-current financial assets | 74 | 71 | ||
Level 1 [Member] | Recurring fair value measurement [member] | Interest rate swaps [member] | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Derivative financial assets | 0 | 0 | ||
Level 1 [Member] | Recurring fair value measurement [member] | Cross Currency Swaps [member] | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Derivative financial liabilities | 0 | 0 | ||
Level 1 [Member] | Recurring fair value measurement [member] | Forward foreign exchange contracts [Member] | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Derivative financial assets | 0 | |||
Level 2 [Member] | Recurring fair value measurement [member] | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Other financial assets | 440 | |||
Level 2 [Member] | Recurring fair value measurement [member] | Non listed shares [member] | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Other equity instruments investments | 0 | 0 | ||
Other non-current financial assets | 0 | 0 | ||
Level 2 [Member] | Recurring fair value measurement [member] | Non-tradable shares [member] | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Other equity instruments investments | 0 | 0 | ||
Level 2 [Member] | Recurring fair value measurement [member] | Listed shares [member] | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Other non-current financial assets | 0 | 0 | ||
Level 2 [Member] | Recurring fair value measurement [member] | Interest rate swaps [member] | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Derivative financial assets | 3 | 75 | ||
Level 2 [Member] | Recurring fair value measurement [member] | Cross Currency Swaps [member] | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Derivative financial liabilities | 187 | (44) | ||
Level 2 [Member] | Recurring fair value measurement [member] | Forward foreign exchange contracts [Member] | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Derivative financial assets | 31 | |||
Level 3 [Member] | Recurring fair value measurement [member] | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Other financial assets | 0 | |||
Level 3 [Member] | Recurring fair value measurement [member] | Non listed shares [member] | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Other equity instruments investments | 188 | 234 | ||
Other non-current financial assets | 32 | 32 | ||
Level 3 [Member] | Recurring fair value measurement [member] | Non-tradable shares [member] | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Other equity instruments investments | 861 | 846 | ||
Level 3 [Member] | Recurring fair value measurement [member] | Listed shares [member] | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Other non-current financial assets | 0 | 0 | ||
Level 3 [Member] | Recurring fair value measurement [member] | Interest rate swaps [member] | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Derivative financial assets | 0 | 0 | ||
Level 3 [Member] | Recurring fair value measurement [member] | Cross Currency Swaps [member] | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Derivative financial liabilities | 0 | ¥ 0 | ||
Level 3 [Member] | Recurring fair value measurement [member] | Forward foreign exchange contracts [Member] | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Derivative financial assets | ¥ 0 | |||
[1] | The Group has initially applied IFRS 16 at January 1, 2019 using the modified retrospective approach. Under this approach, comparative information is not restated. See Note 2(b). |
Operating Revenue - Summary of
Operating Revenue - Summary of Operation of Civil Aviation, Including the Provision of Passenger, Cargo, Mail Delivery, and Other Extended Transportation Services (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | [1] | |
Revenue from contracts with customers within the scope of IFRS 15: | ||||
Passenger | ¥ 138,502 | ¥ 128,038 | ¥ 112,791 | |
Cargo and mail | 9,615 | 10,026 | 9,082 | |
Commission income | 2,952 | 2,619 | 2,781 | |
Hotel and tour operation income | 712 | 676 | 547 | |
General aviation income | 564 | 476 | 467 | |
Ground services income | 409 | 429 | 429 | |
Expired sales in advance of carriage | 0 | 0 | 396 | |
Air catering income | 353 | 391 | 335 | |
Cargo handling income | 359 | 254 | 241 | |
Others | 654 | 536 | 553 | |
Revenue from contract | 154,120 | 143,445 | 127,622 | |
Revenue from other sources: | ||||
Rental income | 202 | 178 | 184 | |
Revenue | ¥ 154,322 | ¥ 143,623 | ¥ 127,806 | |
[1] | The Group has initially applied IFRS 15 at January 1, 2018, using the cumulative effect method. Under this method, the comparative information is not restated (see Note 2(b)). |
Operating Revenue - Additional
Operating Revenue - Additional Information (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of disaggregation of revenue from contracts with customers [abstract] | ||
Transaction price allocated to remaining performance obligation | ¥ 3,331 | ¥ 3,711 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2019Segment | |
Disclosure of operating segments [abstract] | |
Number of reportable operating segments | 2 |
Segment Reporting - Information
Segment Reporting - Information of Reportable Segments Provided to Chief Operating Decision Maker for Purposes of Resource Allocation and Assessment of Segment Performance (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Disclosure of operating segments [line items] | ||||||
Total operating revenue | ¥ 154,322 | ¥ 143,623 | ¥ 127,806 | [1] | ||
Profit before income tax | 4,055 | 4,364 | [2],[3] | 8,874 | [2],[3],[4] | |
Profit for the year | 3,084 | 3,364 | [2] | 6,898 | [2],[4] | |
Income tax | 971 | 1,000 | [2] | 1,976 | [2],[4] | |
Interest income | 74 | 125 | [2] | 89 | [2],[4] | |
Interest expense | 5,845 | 3,202 | [3] | 2,747 | [3],[4] | |
Depreciation and amortization | 24,620 | 14,308 | [2] | 13,162 | [2],[4] | |
Share of associates' results | (178) | 263 | [2] | 431 | [2],[4] | |
Share of joint ventures' results | 365 | 200 | [2] | 99 | [2],[4] | |
Remeasurement of the originally held equity interests in a joint venture | 13 | 0 | [2] | 109 | [2],[4] | |
Total assets | 306,928 | 246,949 | ||||
Total liabilities | 229,599 | 168,480 | ||||
Financial Results Prepared under the People's Republic of China Accounting Standards for Business Enterprises ("PRC GAAP") [member] | ||||||
Disclosure of operating segments [line items] | ||||||
Total operating revenue | 154,322 | 143,623 | 127,489 | |||
Profit before income tax | 4,070 | 4,487 | 8,798 | |||
Profit for the year | 3,095 | 3,456 | 6,833 | |||
Income tax | 975 | 1,031 | 1,965 | |||
Interest income | 74 | 125 | 89 | |||
Interest expense | 5,845 | 3,202 | 2,747 | |||
Depreciation and amortization | 24,610 | 14,366 | 13,313 | |||
Impairment loss | 38 | 12 | 442 | |||
Credit loss | 13 | 3 | ||||
Share of associates' results | (178) | 263 | 420 | |||
Share of joint ventures' results | 365 | 200 | 99 | |||
Change in fair value of financial assets / liabilities | 265 | 12 | (64) | |||
Remeasurement of the originally held equity interests in a joint venture | 13 | 88 | ||||
Non-current assets additions during the year | 45,590 | [5] | 37,561 | 32,604 | ||
Total assets | 306,646 | 246,655 | ||||
Total liabilities | 229,592 | 168,472 | ||||
Financial Results Prepared under the People's Republic of China Accounting Standards for Business Enterprises ("PRC GAAP") [member] | Airline transportation operations [member] | ||||||
Disclosure of operating segments [line items] | ||||||
Total operating revenue | 152,795 | 142,203 | 126,236 | |||
Profit before income tax | 3,020 | 3,448 | 7,708 | |||
Profit for the year | 2,224 | 2,567 | 5,875 | |||
Income tax | 796 | 881 | 1,833 | |||
Interest income | 64 | 107 | 74 | |||
Interest expense | 5,833 | 3,054 | 2,724 | |||
Depreciation and amortization | 24,256 | 14,084 | 13,112 | |||
Impairment loss | 38 | 12 | 440 | |||
Credit loss | 11 | 2 | ||||
Share of associates' results | 0 | 0 | 0 | |||
Share of joint ventures' results | 0 | 0 | 0 | |||
Change in fair value of financial assets / liabilities | 0 | 0 | 0 | |||
Remeasurement of the originally held equity interests in a joint venture | 0 | 0 | ||||
Non-current assets additions during the year | 44,851 | [5] | 37,155 | 30,776 | ||
Financial Results Prepared under the People's Republic of China Accounting Standards for Business Enterprises ("PRC GAAP") [member] | Other segments [member] | ||||||
Disclosure of operating segments [line items] | ||||||
Total operating revenue | 5,532 | 5,797 | 4,235 | |||
Profit before income tax | 558 | 604 | 529 | |||
Profit for the year | 446 | 457 | 381 | |||
Income tax | 112 | 147 | 148 | |||
Interest income | 41 | 18 | 15 | |||
Interest expense | 43 | 148 | 23 | |||
Depreciation and amortization | 354 | 282 | 201 | |||
Impairment loss | 0 | 0 | 2 | |||
Credit loss | 2 | 1 | ||||
Share of associates' results | 0 | 0 | 0 | |||
Share of joint ventures' results | 0 | 0 | 0 | |||
Change in fair value of financial assets / liabilities | 0 | 0 | 0 | |||
Remeasurement of the originally held equity interests in a joint venture | 0 | 0 | ||||
Non-current assets additions during the year | 739 | [5] | 406 | 1,828 | ||
Financial Results Prepared under the People's Republic of China Accounting Standards for Business Enterprises ("PRC GAAP") [member] | Point in time [member] | ||||||
Disclosure of operating segments [line items] | ||||||
Total operating revenue | 3,342 | 2,911 | ||||
Financial Results Prepared under the People's Republic of China Accounting Standards for Business Enterprises ("PRC GAAP") [member] | Point in time [member] | Airline transportation operations [member] | ||||||
Disclosure of operating segments [line items] | ||||||
Total operating revenue | 2,996 | 2,532 | ||||
Financial Results Prepared under the People's Republic of China Accounting Standards for Business Enterprises ("PRC GAAP") [member] | Point in time [member] | Other segments [member] | ||||||
Disclosure of operating segments [line items] | ||||||
Total operating revenue | 2,747 | 1,975 | ||||
Financial Results Prepared under the People's Republic of China Accounting Standards for Business Enterprises ("PRC GAAP") [member] | Over time [member] | ||||||
Disclosure of operating segments [line items] | ||||||
Total operating revenue | 150,980 | 140,712 | ||||
Financial Results Prepared under the People's Republic of China Accounting Standards for Business Enterprises ("PRC GAAP") [member] | Over time [member] | Airline transportation operations [member] | ||||||
Disclosure of operating segments [line items] | ||||||
Total operating revenue | 149,799 | 139,671 | ||||
Financial Results Prepared under the People's Republic of China Accounting Standards for Business Enterprises ("PRC GAAP") [member] | Over time [member] | Other segments [member] | ||||||
Disclosure of operating segments [line items] | ||||||
Total operating revenue | 2,785 | 3,822 | ||||
Financial Results Prepared under the People's Republic of China Accounting Standards for Business Enterprises ("PRC GAAP") [member] | Reportable operating segments [member] | ||||||
Disclosure of operating segments [line items] | ||||||
Total assets | 306,646 | 246,655 | ||||
Total liabilities | 229,592 | 168,472 | ||||
Financial Results Prepared under the People's Republic of China Accounting Standards for Business Enterprises ("PRC GAAP") [member] | Reportable operating segments [member] | Airline transportation operations [member] | ||||||
Disclosure of operating segments [line items] | ||||||
Total assets | 295,439 | 234,755 | ||||
Total liabilities | 230,738 | 167,806 | ||||
Financial Results Prepared under the People's Republic of China Accounting Standards for Business Enterprises ("PRC GAAP") [member] | Reportable operating segments [member] | Other segments [member] | ||||||
Disclosure of operating segments [line items] | ||||||
Total assets | 7,048 | 6,479 | ||||
Total liabilities | 2,458 | 2,391 | ||||
Financial Results Prepared under the People's Republic of China Accounting Standards for Business Enterprises ("PRC GAAP") [member] | Elimination [member] | ||||||
Disclosure of operating segments [line items] | ||||||
Total operating revenue | (4,005) | (4,377) | (2,982) | |||
Profit before income tax | 2 | (60) | 0 | |||
Profit for the year | 2 | (60) | 0 | |||
Income tax | 0 | 0 | 0 | |||
Interest income | (31) | 0 | 0 | |||
Interest expense | (31) | 0 | 0 | |||
Depreciation and amortization | 0 | 0 | 0 | |||
Impairment loss | 0 | 0 | 0 | |||
Credit loss | 0 | 0 | ||||
Share of associates' results | 0 | 0 | 0 | |||
Share of joint ventures' results | 0 | 0 | 0 | |||
Change in fair value of financial assets / liabilities | 0 | 0 | 0 | |||
Remeasurement of the originally held equity interests in a joint venture | 0 | 0 | ||||
Non-current assets additions during the year | 0 | [5] | 0 | 0 | ||
Total assets | (3,662) | (1,829) | ||||
Total liabilities | (3,604) | (1,769) | ||||
Financial Results Prepared under the People's Republic of China Accounting Standards for Business Enterprises ("PRC GAAP") [member] | Elimination [member] | Point in time [member] | ||||||
Disclosure of operating segments [line items] | ||||||
Total operating revenue | (2,401) | (1,596) | ||||
Financial Results Prepared under the People's Republic of China Accounting Standards for Business Enterprises ("PRC GAAP") [member] | Elimination [member] | Over time [member] | ||||||
Disclosure of operating segments [line items] | ||||||
Total operating revenue | (1,604) | (2,781) | ||||
Financial Results Prepared under the People's Republic of China Accounting Standards for Business Enterprises ("PRC GAAP") [member] | Unallocated [Member] | ||||||
Disclosure of operating segments [line items] | ||||||
Total operating revenue | 0 | [6] | 0 | 0 | ||
Profit before income tax | 490 | [6] | 495 | 561 | ||
Profit for the year | 423 | [6] | 492 | 577 | ||
Income tax | 67 | [6] | 3 | (16) | ||
Interest income | 0 | [6] | 0 | 0 | ||
Interest expense | 0 | [6] | 0 | 0 | ||
Depreciation and amortization | 0 | [6] | 0 | 0 | ||
Impairment loss | 0 | [6] | 0 | 0 | ||
Credit loss | 0 | [6] | 0 | |||
Share of associates' results | (178) | [6] | 263 | 420 | ||
Share of joint ventures' results | 365 | [6] | 200 | 99 | ||
Change in fair value of financial assets / liabilities | 265 | [6] | 12 | (64) | ||
Remeasurement of the originally held equity interests in a joint venture | 13 | [6] | 88 | |||
Non-current assets additions during the year | 0 | [5] | 0 | 0 | ||
Total assets | 7,821 | 7,250 | ||||
Total liabilities | 0 | 44 | ||||
Financial Results Prepared under the People's Republic of China Accounting Standards for Business Enterprises ("PRC GAAP") [member] | Unallocated [Member] | Point in time [member] | ||||||
Disclosure of operating segments [line items] | ||||||
Total operating revenue | 0 | [6] | 0 | |||
Financial Results Prepared under the People's Republic of China Accounting Standards for Business Enterprises ("PRC GAAP") [member] | Unallocated [Member] | Over time [member] | ||||||
Disclosure of operating segments [line items] | ||||||
Total operating revenue | 0 | [6] | 0 | |||
Financial Results Prepared under the People's Republic of China Accounting Standards for Business Enterprises ("PRC GAAP") [member] | External customers [Member] | ||||||
Disclosure of operating segments [line items] | ||||||
Total operating revenue | 154,322 | 143,623 | 127,489 | |||
Financial Results Prepared under the People's Republic of China Accounting Standards for Business Enterprises ("PRC GAAP") [member] | External customers [Member] | Airline transportation operations [member] | ||||||
Disclosure of operating segments [line items] | ||||||
Total operating revenue | 152,591 | 141,968 | 126,077 | |||
Financial Results Prepared under the People's Republic of China Accounting Standards for Business Enterprises ("PRC GAAP") [member] | External customers [Member] | Other segments [member] | ||||||
Disclosure of operating segments [line items] | ||||||
Total operating revenue | 1,731 | 1,655 | 1,412 | |||
Financial Results Prepared under the People's Republic of China Accounting Standards for Business Enterprises ("PRC GAAP") [member] | External customers [Member] | Elimination [member] | ||||||
Disclosure of operating segments [line items] | ||||||
Total operating revenue | 0 | 0 | 0 | |||
Financial Results Prepared under the People's Republic of China Accounting Standards for Business Enterprises ("PRC GAAP") [member] | External customers [Member] | Unallocated [Member] | ||||||
Disclosure of operating segments [line items] | ||||||
Total operating revenue | 0 | [6] | 0 | 0 | ||
Financial Results Prepared under the People's Republic of China Accounting Standards for Business Enterprises ("PRC GAAP") [member] | Intersegment [Member] | ||||||
Disclosure of operating segments [line items] | ||||||
Total operating revenue | 0 | 0 | ||||
Financial Results Prepared under the People's Republic of China Accounting Standards for Business Enterprises ("PRC GAAP") [member] | Intersegment [Member] | Reportable operating segments [member] | ||||||
Disclosure of operating segments [line items] | ||||||
Total operating revenue | 0 | |||||
Financial Results Prepared under the People's Republic of China Accounting Standards for Business Enterprises ("PRC GAAP") [member] | Intersegment [Member] | Reportable operating segments [member] | Airline transportation operations [member] | ||||||
Disclosure of operating segments [line items] | ||||||
Total operating revenue | 204 | 235 | 159 | |||
Financial Results Prepared under the People's Republic of China Accounting Standards for Business Enterprises ("PRC GAAP") [member] | Intersegment [Member] | Reportable operating segments [member] | Other segments [member] | ||||||
Disclosure of operating segments [line items] | ||||||
Total operating revenue | 3,801 | 4,142 | 2,823 | |||
Financial Results Prepared under the People's Republic of China Accounting Standards for Business Enterprises ("PRC GAAP") [member] | Intersegment [Member] | Elimination [member] | ||||||
Disclosure of operating segments [line items] | ||||||
Total operating revenue | (4,005) | (4,377) | (2,982) | |||
Financial Results Prepared under the People's Republic of China Accounting Standards for Business Enterprises ("PRC GAAP") [member] | Intersegment [Member] | Unallocated [Member] | ||||||
Disclosure of operating segments [line items] | ||||||
Total operating revenue | ¥ 0 | [6] | ¥ 0 | ¥ 0 | ||
[1] | The Group has initially applied IFRS 15 at January 1, 2018, using the cumulative effect method. Under this method, the comparative information is not restated (see Note 2(b)). | |||||
[2] | The Group has initially applied IFRS 16 at January 1, 2019 using the modified retrospective approach. Under this approach, comparative information is not restated. See Note 2(b). | |||||
[3] | The Group has initially applied IFRS 16 using the modified retrospective approach and adjusted the opening balances at January 1, 2019 to recognize right-of-use assets and lease liabilities relating to leases which were previously classified as operating leases under IAS 17. In the comparative periods in 2018 and 2017, cash payments under operating leases made by the Group as a lessee of RMB9,920 million and RMB8,996 million, respectively, were included in operating cash outflows in the consolidated cash flow statements. Under IFRS 16, except for short-term lease payments and payments for leases of low value assets not included in the measurement of lease liabilities, all other rentals paid on leases are now split into capital element and interest element and classified as financing cash outflows and operating cash outflows, respectively. Under the modified retrospective approach, the comparative information is not restated. Further details on the impact of the transition to IFRS 16 are set out in Note 2(b). | |||||
[4] | The Group has initially applied IFRS 15 and IFRS 9 at January 1, 2018. Under the transition methods chosen, comparative information is not restated. See Note 2(b). | |||||
[5] | The additions of non-current assets do not include interest in associates and joint ventures, other equity instrument investments, other non-current financial assets, derivative financial assets and deferred tax assets. | |||||
[6] | Unallocated assets primarily include interest in associates and joint ventures, derivative financial assets and equity securities. Unallocated results primarily include the share of results of associates and joint ventures, dividend income from equity securities, and the fair value movement of financial instruments recognized through profit or loss. |
Segment Reporting - Revenues by
Segment Reporting - Revenues by Geographical Segment (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Disclosure of geographical areas [line items] | ||||
Total operating revenue | ¥ 154,322 | ¥ 143,623 | ¥ 127,806 | [1] |
Financial Results Prepared under the People's Republic of China Accounting Standards for Business Enterprises ("PRC GAAP") [member] | ||||
Disclosure of geographical areas [line items] | ||||
Total operating revenue | 154,322 | 143,623 | 127,489 | |
Financial Results Prepared under the People's Republic of China Accounting Standards for Business Enterprises ("PRC GAAP") [member] | Domestic [Member] | ||||
Disclosure of geographical areas [line items] | ||||
Total operating revenue | 110,112 | 103,287 | 92,986 | |
Financial Results Prepared under the People's Republic of China Accounting Standards for Business Enterprises ("PRC GAAP") [member] | International [Member] | ||||
Disclosure of geographical areas [line items] | ||||
Total operating revenue | 41,651 | 37,773 | 32,117 | |
Financial Results Prepared under the People's Republic of China Accounting Standards for Business Enterprises ("PRC GAAP") [member] | Hong Kong, Macau and Taiwan [Member] | ||||
Disclosure of geographical areas [line items] | ||||
Total operating revenue | ¥ 2,559 | ¥ 2,563 | ¥ 2,386 | |
[1] | The Group has initially applied IFRS 15 at January 1, 2018, using the cumulative effect method. Under this method, the comparative information is not restated (see Note 2(b)). |
Segment Reporting - Reconciliat
Segment Reporting - Reconciliation of Reportable Segment Revenue, Profit before Income Tax, Assets and Liabilities to Consolidated Figures (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Disclosure of operating segments [line items] | |||||
Total operating revenue | ¥ 154,322 | ¥ 143,623 | [1] | ¥ 127,806 | [1],[2] |
Profit before income tax | 4,055 | 4,364 | [1],[3] | 8,874 | [1],[2],[3] |
Total assets | 306,928 | 246,949 | |||
Total liabilities | 229,599 | 168,480 | |||
Financial Results Prepared under the People's Republic of China Accounting Standards for Business Enterprises ("PRC GAAP") [member] | |||||
Disclosure of operating segments [line items] | |||||
Total operating revenue | 154,322 | 143,623 | 127,489 | ||
Profit before income tax | 4,070 | 4,487 | 8,798 | ||
Total assets | 306,646 | 246,655 | |||
Total liabilities | 229,592 | 168,472 | |||
Financial Results Prepared under the People's Republic of China Accounting Standards for Business Enterprises ("PRC GAAP") [member] | Reclassification of expired sales in advance of carriage [Member] | |||||
Disclosure of operating segments [line items] | |||||
Total operating revenue | 0 | 0 | 396 | ||
Financial Results Prepared under the People's Republic of China Accounting Standards for Business Enterprises ("PRC GAAP") [member] | Reclassification of sales tax [Member] | |||||
Disclosure of operating segments [line items] | |||||
Total operating revenue | 0 | 0 | (65) | ||
Financial Results Prepared under the People's Republic of China Accounting Standards for Business Enterprises ("PRC GAAP") [member] | Adjustments arising from business combinations under common control [Member] | |||||
Disclosure of operating segments [line items] | |||||
Total operating revenue | 0 | 0 | (14) | ||
Profit before income tax | 0 | 0 | 8 | ||
Total assets | 237 | 237 | |||
Financial Results Prepared under the People's Republic of China Accounting Standards for Business Enterprises ("PRC GAAP") [member] | Capitalization of exchange difference of specific loans [Member] | |||||
Disclosure of operating segments [line items] | |||||
Profit before income tax | (16) | (124) | 47 | ||
Total assets | 56 | 72 | |||
Financial Results Prepared under the People's Republic of China Accounting Standards for Business Enterprises ("PRC GAAP") [member] | Government grants [Member] | |||||
Disclosure of operating segments [line items] | |||||
Profit before income tax | 1 | 1 | ¥ 21 | ||
Total assets | (6) | (7) | |||
Financial Results Prepared under the People's Republic of China Accounting Standards for Business Enterprises ("PRC GAAP") [member] | Others [Member] | |||||
Disclosure of operating segments [line items] | |||||
Total assets | (5) | (8) | |||
Total liabilities | ¥ 7 | ¥ 8 | |||
[1] | The Group has initially applied IFRS 16 at January 1, 2019 using the modified retrospective approach. Under this approach, comparative information is not restated. See Note 2(b). | ||||
[2] | The Group has initially applied IFRS 15 and IFRS 9 at January 1, 2018. Under the transition methods chosen, comparative information is not restated. See Note 2(b). | ||||
[3] | The Group has initially applied IFRS 16 using the modified retrospective approach and adjusted the opening balances at January 1, 2019 to recognize right-of-use assets and lease liabilities relating to leases which were previously classified as operating leases under IAS 17. In the comparative periods in 2018 and 2017, cash payments under operating leases made by the Group as a lessee of RMB9,920 million and RMB8,996 million, respectively, were included in operating cash outflows in the consolidated cash flow statements. Under IFRS 16, except for short-term lease payments and payments for leases of low value assets not included in the measurement of lease liabilities, all other rentals paid on leases are now split into capital element and interest element and classified as financing cash outflows and operating cash outflows, respectively. Under the modified retrospective approach, the comparative information is not restated. Further details on the impact of the transition to IFRS 16 are set out in Note 2(b). |
Flight Operation Expenses - Sum
Flight Operation Expenses - Summary of Flight Operation Expenses (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | [1] | Dec. 31, 2017 | [1] | |
Analysis of income and expense [abstract] | |||||
Jet fuel costs | ¥ 42,814 | ¥ 42,922 | ¥ 31,895 | ||
Flight personnel payroll and welfare | 12,709 | 11,467 | 10,574 | ||
Air catering expenses | 3,975 | 3,734 | 3,379 | ||
Civil Aviation Development Fund | 2,332 | 2,940 | 2,720 | ||
Aircraft operating lease charges | 1,412 | 8,726 | 8,022 | ||
Training expenses | 1,142 | 894 | 1,184 | ||
Aircraft Insurance | 192 | 163 | 0 | ||
Others | 5,990 | 5,370 | 5,204 | ||
Flight operation expenses | ¥ 70,566 | ¥ 76,216 | ¥ 62,978 | ||
[1] | The Group has initially applied IFRS 16 at January 1, 2019 using the modified retrospective approach. Under this approach, comparative information is not restated. See Note 2(b). |
Maintenance Expenses - Summary
Maintenance Expenses - Summary of Maintenance Expenses (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Analysis of income and expense [abstract] | |||
Aviation repair and maintenance charges | ¥ 8,565 | ¥ 8,394 | ¥ 7,930 |
Staff payroll and welfare | 2,976 | 2,736 | 2,620 |
Maintenance materials | 1,516 | 1,574 | 1,327 |
Maintenance expenses | ¥ 13,057 | ¥ 12,704 | ¥ 11,877 |
Aircraft and Transportation S_3
Aircraft and Transportation Service Expenses - Summary of Aircraft and Transportation Service Expenses (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Analysis of income and expense [abstract] | |||
Landing and navigation fees | ¥ 17,658 | ¥ 15,980 | ¥ 14,910 |
Ground service and other charges | 8,933 | 8,399 | 8,025 |
Airport and transportation service expenses | ¥ 26,591 | ¥ 24,379 | ¥ 22,935 |
Promotion and Selling Expense_2
Promotion and Selling Expenses - Summary of Promotion and Selling Expenses (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Analysis of income and expense [abstract] | ||||||
Ticket office expenses | ¥ 3,299 | ¥ 3,173 | ¥ 3,160 | |||
Sales commissions | [1] | 2,214 | 2,027 | 1,935 | ||
Computer reservation services | 959 | 892 | 835 | |||
Advertising and promotion | 314 | 217 | 196 | |||
Others | 969 | 727 | 755 | |||
Promotion and selling expenses | ¥ 7,755 | ¥ 7,036 | [2] | ¥ 6,881 | [2],[3] | |
[1] | The Group applies the practical expedient in IFRS 15 and therefore expenses the portion of sales commissions which are regarded as directly related incremental costs of obtaining transportation contracts, as the amortization period is less than one year. | |||||
[2] | The Group has initially applied IFRS 16 at January 1, 2019 using the modified retrospective approach. Under this approach, comparative information is not restated. See Note 2(b). | |||||
[3] | The Group has initially applied IFRS 15 and IFRS 9 at January 1, 2018. Under the transition methods chosen, comparative information is not restated. See Note 2(b). |
General and Administrative Ex_3
General and Administrative Expenses - Summary of General and Administrative Expenses (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Analysis of income and expense [abstract] | |||||
General corporate expenses | ¥ 3,705 | ¥ 3,477 | ¥ 3,218 | ||
Auditors' remuneration | 20 | 18 | 14 | ||
- Audit services | 18 | 15 | 14 | ||
- Non-audit services | 2 | 3 | 0 | ||
Other taxes and levies | 348 | 275 | 159 | ||
General and administrative expenses | ¥ 4,073 | ¥ 3,770 | [1] | ¥ 3,391 | [1],[2] |
[1] | The Group has initially applied IFRS 16 at January 1, 2019 using the modified retrospective approach. Under this approach, comparative information is not restated. See Note 2(b). | ||||
[2] | The Group has initially applied IFRS 15 and IFRS 9 at January 1, 2018. Under the transition methods chosen, comparative information is not restated. See Note 2(b). |
Depreciation and amortization -
Depreciation and amortization - Summary of Depreciation and Amortisation (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Depreciation and amortization expense [Line Items] | |||||
Depreciation, right-of-use assets | ¥ 15,263 | ¥ 0 | ¥ 0 | ||
Other amortization | 328 | 339 | [1] | 199 | [1],[2] |
Depreciation and amortization | 24,620 | 14,308 | [3] | 13,162 | [2],[3] |
Owned assets [member] | |||||
Depreciation and amortization expense [Line Items] | |||||
Depreciation | 9,029 | 8,193 | 8,080 | ||
Finance leases [member] | |||||
Depreciation and amortization expense [Line Items] | |||||
Depreciation | ¥ 0 | ¥ 5,776 | ¥ 4,883 | ||
[1] | The Group has initially applied IFRS 16 using the modified retrospective approach and adjusted the opening balances at January 1, 2019 to recognize right-of-use assets and lease liabilities relating to leases which were previously classified as operating leases under IAS 17. In the comparative periods in 2018 and 2017, cash payments under operating leases made by the Group as a lessee of RMB9,920 million and RMB8,996 million, respectively, were included in operating cash outflows in the consolidated cash flow statements. Under IFRS 16, except for short-term lease payments and payments for leases of low value assets not included in the measurement of lease liabilities, all other rentals paid on leases are now split into capital element and interest element and classified as financing cash outflows and operating cash outflows, respectively. Under the modified retrospective approach, the comparative information is not restated. Further details on the impact of the transition to IFRS 16 are set out in Note 2(b). | ||||
[2] | The Group has initially applied IFRS 15 and IFRS 9 at January 1, 2018. Under the transition methods chosen, comparative information is not restated. See Note 2(b). | ||||
[3] | The Group has initially applied IFRS 16 at January 1, 2019 using the modified retrospective approach. Under this approach, comparative information is not restated. See Note 2(b). |
Staff Costs - Summary of Staff
Staff Costs - Summary of Staff Costs (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Analysis of income and expense [abstract] | |||
Salaries, wages and welfare | ¥ 24,647 | ¥ 22,445 | ¥ 21,400 |
Defined contribution retirement scheme | 2,794 | 2,387 | 2,114 |
Other retirement welfare subsidy | 206 | 197 | 194 |
Early retirement benefits (Note 47) | 0 | 1 | 1 |
Staff costs | ¥ 27,647 | ¥ 25,030 | ¥ 23,709 |
Other Net Income - Summary of O
Other Net Income - Summary of Other Net Income (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Disclosure of other operating income [Line Items] | |||||
Government grants | ¥ 4,129 | ¥ 4,348 | ¥ 3,075 | ||
Gains on disposal of property, plant and equipment and construction in progress | 140 | 602 | [1] | 989 | [1],[2] |
Penalty income | 273 | 216 | 126 | ||
Others | 582 | 272 | 258 | ||
Other net income | 5,124 | 5,438 | 4,448 | ||
Aircraft and spare engines and relating construction in progress [member] | |||||
Disclosure of other operating income [Line Items] | |||||
Gains on disposal of property, plant and equipment and construction in progress | 34 | 584 | 960 | ||
Other property, plant and equipment [member] | |||||
Disclosure of other operating income [Line Items] | |||||
Gains on disposal of property, plant and equipment and construction in progress | ¥ 106 | ¥ 18 | ¥ 29 | ||
[1] | The Group has initially applied IFRS 16 using the modified retrospective approach and adjusted the opening balances at January 1, 2019 to recognize right-of-use assets and lease liabilities relating to leases which were previously classified as operating leases under IAS 17. In the comparative periods in 2018 and 2017, cash payments under operating leases made by the Group as a lessee of RMB9,920 million and RMB8,996 million, respectively, were included in operating cash outflows in the consolidated cash flow statements. Under IFRS 16, except for short-term lease payments and payments for leases of low value assets not included in the measurement of lease liabilities, all other rentals paid on leases are now split into capital element and interest element and classified as financing cash outflows and operating cash outflows, respectively. Under the modified retrospective approach, the comparative information is not restated. Further details on the impact of the transition to IFRS 16 are set out in Note 2(b). | ||||
[2] | The Group has initially applied IFRS 15 and IFRS 9 at January 1, 2018. Under the transition methods chosen, comparative information is not restated. See Note 2(b). |
Interest Expense - Summary of I
Interest Expense - Summary of Interest Expense (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Interest costs [abstract] | |||||
Interest on borrowings | ¥ 1,840 | ¥ 1,891 | ¥ 1,628 | ||
Interest relating to lease liabilities (Note 21) | 5,302 | 0 | 0 | ||
Interest relating to obligations under finance leases | 0 | 2,409 | 2,009 | ||
Interest relating to provision for early retirement benefits | 0 | 0 | 1 | ||
Total interest expense on financial liabilities not at fair value through profit or loss | 7,142 | 4,300 | 3,638 | ||
Less: interest expense capitalized (Note(ii)) | (1,279) | (1,085) | (908) | ||
Interest expense net of capitalized | 5,863 | 3,215 | 2,730 | ||
Interest rate swaps: cash flow hedge, reclassified from equity (Note 17&21) | (18) | (13) | 17 | [1] | |
Interest expense | ¥ 5,845 | ¥ 3,202 | [2] | ¥ 2,747 | [2],[3] |
[1] | The Group has initially applied IFRS 9 at January 1, 2018. Under the transition methods chosen, comparative information is not restated. See Note 2(b). | ||||
[2] | The Group has initially applied IFRS 16 using the modified retrospective approach and adjusted the opening balances at January 1, 2019 to recognize right-of-use assets and lease liabilities relating to leases which were previously classified as operating leases under IAS 17. In the comparative periods in 2018 and 2017, cash payments under operating leases made by the Group as a lessee of RMB9,920 million and RMB8,996 million, respectively, were included in operating cash outflows in the consolidated cash flow statements. Under IFRS 16, except for short-term lease payments and payments for leases of low value assets not included in the measurement of lease liabilities, all other rentals paid on leases are now split into capital element and interest element and classified as financing cash outflows and operating cash outflows, respectively. Under the modified retrospective approach, the comparative information is not restated. Further details on the impact of the transition to IFRS 16 are set out in Note 2(b). | ||||
[3] | The Group has initially applied IFRS 15 and IFRS 9 at January 1, 2018. Under the transition methods chosen, comparative information is not restated. See Note 2(b). |
Interest Expense - Summary of_2
Interest Expense - Summary of Interest Expense (Parenthetical) (Detail) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Interest costs [abstract] | |||
Weighted average interest rate per annum used for interest capitalisation | 3.51% | 3.54% | 3.32% |
Income Tax - Income Tax Expense
Income Tax - Income Tax Expense in Consolidated Income Statement (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
PRC income tax | |||||
Provision for the year | ¥ 1,611 | ¥ 962 | ¥ 2,280 | ||
Under/(over)-provision in prior year | 10 | (27) | (2) | ||
Current tax expense | 1,621 | 935 | 2,278 | ||
Deferred tax (Note 29) | |||||
Origination and reversal of temporary differences | (650) | 65 | (302) | ||
Income tax expense | ¥ 971 | ¥ 1,000 | [1] | ¥ 1,976 | [1],[2] |
[1] | The Group has initially applied IFRS 16 at January 1, 2019 using the modified retrospective approach. Under this approach, comparative information is not restated. See Note 2(b). | ||||
[2] | The Group has initially applied IFRS 15 and IFRS 9 at January 1, 2018. Under the transition methods chosen, comparative information is not restated. See Note 2(b). |
Income Tax - Additional Informa
Income Tax - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
AUSTRALIA | |||
Statement [LineItems] | |||
PRC corporate income tax rate | 30.00% | 30.00% | |
HONG KONG | |||
Statement [LineItems] | |||
PRC corporate income tax rate | 16.50% | 16.50% | 16.50% |
Bottom of range [member] | |||
Statement [LineItems] | |||
PRC corporate income tax rate | 15.00% | 15.00% | 15.00% |
Preferential income tax rate for certain PRC subsidiaries | 15.00% | 15.00% | 15.00% |
Top of range [member] | |||
Statement [LineItems] | |||
PRC corporate income tax rate | 25.00% | 25.00% | 25.00% |
Preferential income tax rate for certain PRC subsidiaries | 30.00% | 30.00% | 25.00% |
Income Tax - Reconciliation bet
Income Tax - Reconciliation between Actual Tax Expense and Calculated Tax Based on Accounting Profit at Applicable Tax Rates (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Reconciliation between actual tax expense and calculated tax based on accounting profit at applicable tax rates [abstract] | |||||
Profit before income tax | ¥ 4,055 | ¥ 4,364 | [1],[2] | ¥ 8,874 | [1],[2],[3] |
Notional tax on profit before taxation, calculated at the rates applicable to profits in the tax jurisdictions concerned (Note 16(a)) | 964 | 1,089 | 2,179 | ||
Non-deductible expenses | 18 | 23 | 9 | ||
Share of results of associates and joint ventures and other non-taxable income | (50) | (121) | (137) | ||
Taxable temporary differences for which no deferred tax liabilities were recognized | 0 | 0 | (27) | ||
Unused tax losses and deductible temporary differences for which no deferred tax assets were recognized | 62 | 73 | 26 | ||
Utilization of unused tax losses and deductible temporary differences for which no deferred tax assets were recognized in prior years | (3) | (17) | (72) | ||
Under/(over)-provision in prior year | 10 | (27) | (2) | ||
Super deduction of research and development expenses | (30) | (20) | 0 | ||
Income tax expense | ¥ 971 | ¥ 1,000 | [1] | ¥ 1,976 | [1],[3] |
[1] | The Group has initially applied IFRS 16 at January 1, 2019 using the modified retrospective approach. Under this approach, comparative information is not restated. See Note 2(b). | ||||
[2] | The Group has initially applied IFRS 16 using the modified retrospective approach and adjusted the opening balances at January 1, 2019 to recognize right-of-use assets and lease liabilities relating to leases which were previously classified as operating leases under IAS 17. In the comparative periods in 2018 and 2017, cash payments under operating leases made by the Group as a lessee of RMB9,920 million and RMB8,996 million, respectively, were included in operating cash outflows in the consolidated cash flow statements. Under IFRS 16, except for short-term lease payments and payments for leases of low value assets not included in the measurement of lease liabilities, all other rentals paid on leases are now split into capital element and interest element and classified as financing cash outflows and operating cash outflows, respectively. Under the modified retrospective approach, the comparative information is not restated. Further details on the impact of the transition to IFRS 16 are set out in Note 2(b). | ||||
[3] | The Group has initially applied IFRS 15 and IFRS 9 at January 1, 2018. Under the transition methods chosen, comparative information is not restated. See Note 2(b). |
Other Comprehensive Income - Su
Other Comprehensive Income - Summary of Other Comprehensive Income (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Cash flow hedges: | |||||
Effective portion of changes in fair value of hedging instruments recognized during the year | ¥ (54) | ¥ 42 | ¥ 8 | [1] | |
Reclassification adjustments for amounts transferred to profit or loss: - interest expense (Note 15) | (18) | (13) | 17 | [1] | |
Net deferred tax credited / (debited) to other comprehensive income | 17 | (7) | (6) | [1] | |
Net movement in the fair value reserve during the year recognized in other comprehensive income | (55) | 22 | 19 | [1] | |
Equity investments measured at FVOCI: | |||||
Changes in fair value recognized during the year | (31) | 319 | [2] | 0 | [1],[2],[3] |
Net deferred tax credited / (debited) to other comprehensive income | 7 | (80) | 0 | [1] | |
Net movement in the fair value reserve (non-recycling) during the year recognised in other comprehensive income | (24) | 239 | 0 | [1] | |
Share of other comprehensive income of an associate | |||||
Will not be reclassified to profit or loss | 3 | (4) | 0 | [1] | |
May be reclassified subsequently to profit or loss | 0 | 0 | 2 | [1] | |
Net movement during the year recognised in other comprehensive income | 3 | (4) | 2 | [1] | |
Differences resulting from the translation of foreign currency financial statements | (7) | (2) | 0 | [1] | |
Available-for-sale financial assets: | |||||
Changes in fair value recognized during the year | 0 | 0 | [2] | 123 | [2],[3] |
Net deferred tax debited to other comprehensive income | 0 | 0 | (31) | [1] | |
Net movement in the fair value reserve during the year recognized in other comprehensive income | ¥ 0 | ¥ 0 | ¥ 92 | [1] | |
[1] | The Group has initially applied IFRS 9 at January 1, 2018. Under the transition methods chosen, comparative information is not restated. See Note 2(b). | ||||
[2] | The Group has initially applied IFRS 16 at January 1, 2019 using the modified retrospective approach. Under this approach, comparative information is not restated. See Note 2(b). | ||||
[3] | The Group has initially applied IFRS 15 and IFRS 9 at January 1, 2018. Under the transition methods chosen, comparative information is not restated. See Note 2(b). |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Earnings per share [abstract] | |||||
Profit attributable to equity shareholders of the Company | ¥ 2,640 | ¥ 2,895 | [1] | ¥ 5,961 | [1],[2] |
Weighted average number of shares in issue | 12,267,172,286 | 10,718,916,979 | 9,923,585,348 | ||
Number of dilutive potential ordinary shares | 0 | 0 | 0 | ||
[1] | The Group has initially applied IFRS 16 at January 1, 2019 using the modified retrospective approach. Under this approach, comparative information is not restated. See Note 2(b). | ||||
[2] | The Group has initially applied IFRS 15 and IFRS 9 at January 1, 2018. Under the transition methods chosen, comparative information is not restated. See Note 2(b). |
Earning Per Share - Summary of
Earning Per Share - Summary of Earnings per Share (Detail) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings per share [line items] | |||
Issued ordinary shares at January 1 | 12,267 | 10,088 | 9,818 |
Weighted average number of ordinary shares at December 31 | 12,267 | 10,719 | 9,924 |
A Shares (par value RMB1.00 per share) [member] | |||
Earnings per share [line items] | |||
Effect of issuance of shares | 0 | 450 | 0 |
H Shares (par value RMB1.00 per share) [member] | |||
Earnings per share [line items] | |||
Effect of issuance of shares | 0 | 181 | 106 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net - Summary of Property, Plant and Equipment, Net (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | ||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Beginning balance | ¥ 170,692 | [1] | ¥ 170,692 | ||||
Reclassification on change of holding intention: | |||||||
Provision for impairment losses (Note 19(d)) | 18 | 0 | [1],[2] | ¥ 324 | [1],[2],[3] | ||
Ending balance | 84,788 | 170,692 | [1] | 170,692 | |||
Gross carrying amount [member] | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Beginning balance | 247,281 | ||||||
Impact on initial application of IFRS 16 | ¥ (110,441) | ||||||
Acquisitions through business combinations | 18 | 97 | |||||
Depreciation charge for the year | 70,774 | ||||||
Additions | 6,455 | 12,415 | |||||
Transfer from construction in progress | 4,042 | 14,134 | |||||
Reclassification on change of holding intention: | |||||||
transferred to other property, plant and equipment, net | 0 | 0 | |||||
transferred to right-of-use assets, net | (16) | ||||||
Transferred from right-of-use assets on exercise of purchase option (Note 21) | 2,641 | ||||||
Reclassification on exercise of purchase option | 0 | ||||||
Transfer to assets held for sale | (1,910) | ||||||
Disposals | (3,296) | (8,990) | |||||
Ending balance | 162,430 | 247,281 | |||||
Gross carrying amount [member] | Previously stated [member] | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Beginning balance | 263,027 | ||||||
Reclassification on change of holding intention: | |||||||
Ending balance | 263,027 | ||||||
Gross carrying amount [member] | As Restated [Member] | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Beginning balance | 152,586 | ||||||
Reclassification on change of holding intention: | |||||||
Ending balance | 152,586 | ||||||
Accumulated depreciation and impairment losses [member] | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Beginning balance | 92,335 | 88,355 | |||||
Impact on initial application of IFRS 16 | (21,561) | ||||||
Depreciation charge for the year | 9,029 | 13,969 | |||||
Reclassification on change of holding intention: | |||||||
transferred to other property, plant and equipment, net | 0 | 0 | |||||
transferred to right-of-use assets, net | (5) | ||||||
Transferred from right-of-use assets on exercise of purchase option (Note 21) | 874 | ||||||
Reclassification on exercise of purchase option | 0 | ||||||
Transfer to assets held for sale | (1,686) | ||||||
Disposals | (2,981) | (7,980) | |||||
Provision for impairment losses (Note 19(d)) | 18 | ||||||
Impairment losses written off on disposals | (67) | (323) | |||||
Ending balance | 77,642 | 92,335 | 88,355 | ||||
Investment properties [member] | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Beginning balance | 499 | ||||||
Reclassification on change of holding intention: | |||||||
Ending balance | 304 | 499 | |||||
Investment properties [member] | Gross carrying amount [member] | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Beginning balance | 794 | ||||||
Impact on initial application of IFRS 16 | 0 | ||||||
Acquisitions through business combinations | 0 | 0 | |||||
Depreciation charge for the year | 314 | ||||||
Additions | 0 | 0 | |||||
Transfer from construction in progress | 0 | 0 | |||||
Reclassification on change of holding intention: | |||||||
transferred to other property, plant and equipment, net | (327) | 19 | |||||
transferred to right-of-use assets, net | (16) | ||||||
Transferred from right-of-use assets on exercise of purchase option (Note 21) | 0 | ||||||
Reclassification on exercise of purchase option | 0 | ||||||
Transfer to assets held for sale | 0 | ||||||
Disposals | 0 | 0 | |||||
Ending balance | 470 | 794 | |||||
Investment properties [member] | Gross carrying amount [member] | Previously stated [member] | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Beginning balance | 813 | ||||||
Reclassification on change of holding intention: | |||||||
Ending balance | 813 | ||||||
Investment properties [member] | Gross carrying amount [member] | As Restated [Member] | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Beginning balance | 813 | ||||||
Reclassification on change of holding intention: | |||||||
Ending balance | 813 | ||||||
Investment properties [member] | Accumulated depreciation and impairment losses [member] | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Beginning balance | 314 | 270 | |||||
Impact on initial application of IFRS 16 | 0 | ||||||
Depreciation charge for the year | 29 | 29 | |||||
Reclassification on change of holding intention: | |||||||
transferred to other property, plant and equipment, net | (172) | 15 | |||||
transferred to right-of-use assets, net | (5) | ||||||
Transferred from right-of-use assets on exercise of purchase option (Note 21) | 0 | ||||||
Reclassification on exercise of purchase option | 0 | ||||||
Transfer to assets held for sale | 0 | ||||||
Disposals | 0 | 0 | |||||
Provision for impairment losses (Note 19(d)) | 0 | ||||||
Impairment losses written off on disposals | 0 | 0 | |||||
Ending balance | 166 | 314 | 270 | ||||
Buildings [member] | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Beginning balance | 8,801 | ||||||
Reclassification on change of holding intention: | |||||||
Ending balance | 11,129 | 8,801 | |||||
Buildings [member] | Gross carrying amount [member] | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Beginning balance | 12,611 | ||||||
Impact on initial application of IFRS 16 | 0 | ||||||
Acquisitions through business combinations | 0 | 51 | |||||
Depreciation charge for the year | 4,353 | ||||||
Additions | 181 | 48 | |||||
Transfer from construction in progress | 2,515 | 489 | |||||
Reclassification on change of holding intention: | |||||||
transferred to other property, plant and equipment, net | 327 | (19) | |||||
transferred to right-of-use assets, net | 0 | ||||||
Transferred from right-of-use assets on exercise of purchase option (Note 21) | 0 | ||||||
Reclassification on exercise of purchase option | 0 | ||||||
Transfer to assets held for sale | 0 | ||||||
Disposals | (131) | (26) | |||||
Ending balance | 16,046 | 12,611 | |||||
Buildings [member] | Gross carrying amount [member] | Previously stated [member] | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Beginning balance | 13,154 | ||||||
Reclassification on change of holding intention: | |||||||
Ending balance | 13,154 | ||||||
Buildings [member] | Gross carrying amount [member] | As Restated [Member] | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Beginning balance | 13,154 | ||||||
Reclassification on change of holding intention: | |||||||
Ending balance | 13,154 | ||||||
Buildings [member] | Accumulated depreciation and impairment losses [member] | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Beginning balance | 4,353 | 3,965 | |||||
Impact on initial application of IFRS 16 | 0 | ||||||
Depreciation charge for the year | 444 | 413 | |||||
Reclassification on change of holding intention: | |||||||
transferred to other property, plant and equipment, net | 172 | (15) | |||||
transferred to right-of-use assets, net | 0 | ||||||
Transferred from right-of-use assets on exercise of purchase option (Note 21) | 0 | ||||||
Reclassification on exercise of purchase option | 0 | ||||||
Transfer to assets held for sale | 0 | ||||||
Disposals | (52) | (10) | |||||
Provision for impairment losses (Note 19(d)) | 0 | ||||||
Impairment losses written off on disposals | 0 | 0 | |||||
Ending balance | 4,917 | 4,353 | 3,965 | ||||
Owned aircraft [member] | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Beginning balance | 59,844 | ||||||
Reclassification on change of holding intention: | |||||||
Ending balance | 59,099 | 59,844 | |||||
Owned aircraft [member] | Gross carrying amount [member] | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Beginning balance | 105,974 | ||||||
Impact on initial application of IFRS 16 | 0 | ||||||
Acquisitions through business combinations | 0 | 0 | |||||
Depreciation charge for the year | 48,918 | ||||||
Additions | 3,034 | 3,644 | |||||
Transfer from construction in progress | 871 | 4,792 | |||||
Reclassification on change of holding intention: | |||||||
transferred to other property, plant and equipment, net | 0 | 0 | |||||
transferred to right-of-use assets, net | 0 | ||||||
Transferred from right-of-use assets on exercise of purchase option (Note 21) | 2,641 | ||||||
Reclassification on exercise of purchase option | 3,940 | ||||||
Transfer to assets held for sale | (1,804) | ||||||
Disposals | (2,032) | (7,784) | |||||
Ending balance | 113,276 | 105,974 | |||||
Owned aircraft [member] | Gross carrying amount [member] | Previously stated [member] | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Beginning balance | 108,762 | ||||||
Reclassification on change of holding intention: | |||||||
Ending balance | 108,762 | ||||||
Owned aircraft [member] | Gross carrying amount [member] | As Restated [Member] | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Beginning balance | 108,762 | ||||||
Reclassification on change of holding intention: | |||||||
Ending balance | 108,762 | ||||||
Owned aircraft [member] | Accumulated depreciation and impairment losses [member] | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Beginning balance | 48,918 | 50,995 | |||||
Impact on initial application of IFRS 16 | 0 | ||||||
Depreciation charge for the year | 6,390 | 5,667 | |||||
Reclassification on change of holding intention: | |||||||
transferred to other property, plant and equipment, net | 0 | 0 | |||||
transferred to right-of-use assets, net | 0 | ||||||
Transferred from right-of-use assets on exercise of purchase option (Note 21) | 874 | ||||||
Reclassification on exercise of purchase option | 1,072 | ||||||
Transfer to assets held for sale | (1,582) | ||||||
Disposals | (1,993) | (6,912) | |||||
Provision for impairment losses (Note 19(d)) | 18 | ||||||
Impairment losses written off on disposals | (30) | (322) | |||||
Ending balance | 54,177 | 48,918 | 50,995 | ||||
Aircraft acquired under finance leases [member] | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Beginning balance | 88,799 | ||||||
Reclassification on change of holding intention: | |||||||
Ending balance | 0 | 88,799 | |||||
Aircraft acquired under finance leases [member] | Gross carrying amount [member] | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Beginning balance | 99,367 | ||||||
Impact on initial application of IFRS 16 | (110,360) | ||||||
Acquisitions through business combinations | 0 | 0 | |||||
Depreciation charge for the year | 0 | ||||||
Additions | 0 | 7,049 | |||||
Transfer from construction in progress | 0 | 8,038 | |||||
Reclassification on change of holding intention: | |||||||
transferred to other property, plant and equipment, net | 0 | 0 | |||||
transferred to right-of-use assets, net | 0 | ||||||
Transferred from right-of-use assets on exercise of purchase option (Note 21) | 0 | ||||||
Reclassification on exercise of purchase option | (3,940) | ||||||
Transfer to assets held for sale | 0 | ||||||
Disposals | 0 | (154) | |||||
Ending balance | 0 | 99,367 | |||||
Aircraft acquired under finance leases [member] | Gross carrying amount [member] | Previously stated [member] | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Beginning balance | 110,360 | ||||||
Reclassification on change of holding intention: | |||||||
Ending balance | 110,360 | ||||||
Aircraft acquired under finance leases [member] | Gross carrying amount [member] | As Restated [Member] | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Beginning balance | 0 | ||||||
Reclassification on change of holding intention: | |||||||
Ending balance | 0 | ||||||
Aircraft acquired under finance leases [member] | Accumulated depreciation and impairment losses [member] | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Beginning balance | 21,561 | 17,011 | |||||
Impact on initial application of IFRS 16 | (21,561) | ||||||
Depreciation charge for the year | 0 | 5,776 | |||||
Reclassification on change of holding intention: | |||||||
transferred to other property, plant and equipment, net | 0 | 0 | |||||
transferred to right-of-use assets, net | 0 | ||||||
Transferred from right-of-use assets on exercise of purchase option (Note 21) | 0 | ||||||
Reclassification on exercise of purchase option | (1,072) | ||||||
Transfer to assets held for sale | 0 | ||||||
Disposals | 0 | (154) | |||||
Provision for impairment losses (Note 19(d)) | 0 | ||||||
Impairment losses written off on disposals | 0 | 0 | |||||
Ending balance | 0 | 21,561 | 17,011 | ||||
Other flight equipment including rotables [Member] | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Beginning balance | 10,318 | ||||||
Reclassification on change of holding intention: | |||||||
Ending balance | 11,266 | 10,318 | |||||
Other flight equipment including rotables [Member] | Gross carrying amount [member] | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Beginning balance | 21,906 | ||||||
Impact on initial application of IFRS 16 | (81) | ||||||
Acquisitions through business combinations | 0 | 12 | |||||
Depreciation charge for the year | 12,371 | ||||||
Additions | 2,380 | 1,250 | |||||
Transfer from construction in progress | 200 | 401 | |||||
Reclassification on change of holding intention: | |||||||
transferred to other property, plant and equipment, net | 0 | 0 | |||||
transferred to right-of-use assets, net | 0 | ||||||
Transferred from right-of-use assets on exercise of purchase option (Note 21) | 0 | ||||||
Reclassification on exercise of purchase option | 0 | ||||||
Transfer to assets held for sale | (106) | ||||||
Disposals | (803) | (774) | |||||
Ending balance | 24,385 | 21,906 | |||||
Other flight equipment including rotables [Member] | Gross carrying amount [member] | Previously stated [member] | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Beginning balance | 22,689 | ||||||
Reclassification on change of holding intention: | |||||||
Ending balance | 22,689 | ||||||
Other flight equipment including rotables [Member] | Gross carrying amount [member] | As Restated [Member] | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Beginning balance | 22,608 | ||||||
Reclassification on change of holding intention: | |||||||
Ending balance | 22,608 | ||||||
Other flight equipment including rotables [Member] | Accumulated depreciation and impairment losses [member] | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Beginning balance | 12,371 | 11,678 | |||||
Impact on initial application of IFRS 16 | 0 | ||||||
Depreciation charge for the year | 1,483 | 1,462 | |||||
Reclassification on change of holding intention: | |||||||
transferred to other property, plant and equipment, net | 0 | 0 | |||||
transferred to right-of-use assets, net | 0 | ||||||
Transferred from right-of-use assets on exercise of purchase option (Note 21) | 0 | ||||||
Reclassification on exercise of purchase option | 0 | ||||||
Transfer to assets held for sale | (104) | ||||||
Disposals | (698) | (664) | |||||
Provision for impairment losses (Note 19(d)) | 0 | ||||||
Impairment losses written off on disposals | (37) | (1) | |||||
Ending balance | 13,119 | 12,371 | 11,678 | ||||
Machinery, equipment and vehicles [member] | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Beginning balance | 2,431 | ||||||
Reclassification on change of holding intention: | |||||||
Ending balance | 2,990 | 2,431 | |||||
Machinery, equipment and vehicles [member] | Gross carrying amount [member] | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Beginning balance | 6,629 | ||||||
Impact on initial application of IFRS 16 | 0 | ||||||
Acquisitions through business combinations | 18 | 34 | |||||
Depreciation charge for the year | 4,818 | ||||||
Additions | 860 | 424 | |||||
Transfer from construction in progress | 456 | 414 | |||||
Reclassification on change of holding intention: | |||||||
transferred to other property, plant and equipment, net | 0 | 0 | |||||
transferred to right-of-use assets, net | 0 | ||||||
Transferred from right-of-use assets on exercise of purchase option (Note 21) | 0 | ||||||
Reclassification on exercise of purchase option | 0 | ||||||
Transfer to assets held for sale | 0 | ||||||
Disposals | (330) | (252) | |||||
Ending balance | 8,253 | 6,629 | |||||
Machinery, equipment and vehicles [member] | Gross carrying amount [member] | Previously stated [member] | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Beginning balance | 7,249 | ||||||
Reclassification on change of holding intention: | |||||||
Ending balance | 7,249 | ||||||
Machinery, equipment and vehicles [member] | Gross carrying amount [member] | As Restated [Member] | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Beginning balance | 7,249 | ||||||
Reclassification on change of holding intention: | |||||||
Ending balance | 7,249 | ||||||
Machinery, equipment and vehicles [member] | Accumulated depreciation and impairment losses [member] | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Beginning balance | 4,818 | 4,436 | |||||
Impact on initial application of IFRS 16 | ¥ 0 | ||||||
Depreciation charge for the year | 683 | 622 | |||||
Reclassification on change of holding intention: | |||||||
transferred to other property, plant and equipment, net | 0 | 0 | |||||
transferred to right-of-use assets, net | 0 | ||||||
Transferred from right-of-use assets on exercise of purchase option (Note 21) | 0 | ||||||
Reclassification on exercise of purchase option | 0 | ||||||
Transfer to assets held for sale | 0 | ||||||
Disposals | (238) | (240) | |||||
Provision for impairment losses (Note 19(d)) | 0 | ||||||
Impairment losses written off on disposals | 0 | 0 | |||||
Ending balance | ¥ 5,263 | ¥ 4,818 | ¥ 4,436 | ||||
[1] | The Group has initially applied IFRS 16 at January 1, 2019 using the modified retrospective approach. Under this approach, comparative information is not restated. See Note 2(b). | ||||||
[2] | The Group has initially applied IFRS 16 using the modified retrospective approach and adjusted the opening balances at January 1, 2019 to recognize right-of-use assets and lease liabilities relating to leases which were previously classified as operating leases under IAS 17. In the comparative periods in 2018 and 2017, cash payments under operating leases made by the Group as a lessee of RMB9,920 million and RMB8,996 million, respectively, were included in operating cash outflows in the consolidated cash flow statements. Under IFRS 16, except for short-term lease payments and payments for leases of low value assets not included in the measurement of lease liabilities, all other rentals paid on leases are now split into capital element and interest element and classified as financing cash outflows and operating cash outflows, respectively. Under the modified retrospective approach, the comparative information is not restated. Further details on the impact of the transition to IFRS 16 are set out in Note 2(b). | ||||||
[3] | The Group has initially applied IFRS 15 and IFRS 9 at January 1, 2018. Under the transition methods chosen, comparative information is not restated. See Note 2(b). |
Property, Plant and Equipment_4
Property, Plant and Equipment, Net - Additional Information (Detail) ¥ in Millions | 12 Months Ended | ||||
Dec. 31, 2019CNY (¥)Aircraft | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Property, plant and equipment | ¥ 84,788 | ¥ 170,692 | [1] | ¥ 170,692 | |
Rental income for investment properties and certain flight training facilities under operating leases | ¥ 202 | ¥ 178 | 184 | [2] | |
Pre-tax discount rate | 9.00% | ||||
Bottom of range [member] | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Lease term for investment properties and certain flight training facilities under operating leases | One year | ||||
Pre-tax discount rate | 10.50% | 10.50% | |||
Top of range [member] | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Lease term for investment properties and certain flight training facilities under operating leases | Fourteen years | ||||
Pre-tax discount rate | 13.50% | 13.50% | |||
Owned and finance leased aircraft [member] | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Approximate aggregate carrying value of certain property, plant and equipment mortgaged under certain obligations | ¥ 339 | ¥ 373 | |||
Owned and finance leased aircraft [member] | Accumulated impairment provision [member] | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Property, plant and equipment | 985 | 912 | |||
Flight equipment [member] | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Approximate aggregate carrying value of certain property, plant and equipment mortgaged under certain obligations | 37 | ||||
Flight equipment [member] | Accumulated impairment provision [member] | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Property, plant and equipment | ¥ 1,034 | 123 | |||
Boeing aircraft [member] | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Number of aircraft | Aircraft | 4 | ||||
In the process of applying for certain title/right certificates [member] | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Property, plant and equipment | ¥ 7,106 | 5,289 | |||
Investment properties [member] | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Property, plant and equipment | 304 | ¥ 499 | |||
Approximate aggregate carrying value of certain property, plant and equipment mortgaged under certain obligations | ¥ 15 | ¥ 18 | |||
Airbus aircraft [member] | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Number of aircraft | Aircraft | 18 | ||||
Boeing aircraft and Airbus aircraft [member] | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Impairment losses written off on disposals | ¥ 30 | ||||
[1] | The Group has initially applied IFRS 16 at January 1, 2019 using the modified retrospective approach. Under this approach, comparative information is not restated. See Note 2(b). | ||||
[2] | The Group has initially applied IFRS 15 at January 1, 2018, using the cumulative effect method. Under this method, the comparative information is not restated (see Note 2(b)). |
Property, Plant and Equipment_5
Property, Plant and Equipment, Net - Future Minimum Lease Income under Non-cancellable Operating Leases (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Future minimum lease income under non-cancellable operating leases | ¥ 148 | ¥ 101 |
Within 1 year [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Future minimum lease income under non-cancellable operating leases | 38 | 55 |
After 1 year but within 5 years [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Future minimum lease income under non-cancellable operating leases | 74 | 39 |
After 5 years [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Future minimum lease income under non-cancellable operating leases | ¥ 36 | ¥ 7 |
Construction in Progress - Summ
Construction in Progress - Summary of Construction in Progress (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | ¥ 37,791 | ¥ 30,233 |
Additions | 16,292 | 24,459 |
Transferred to property, plant and equipment | (4,042) | (14,134) |
Transferred to lease prepayments | (7) | |
Disposals | (2,605) | |
Transferred to right-of-use assets | (10,515) | |
Transferred to others | (304) | (155) |
Ending balance | 39,222 | 37,791 |
Advance payment for aircraft and flight equipment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 31,680 | 27,543 |
Additions | 10,512 | 19,973 |
Transferred to property, plant and equipment | (1,071) | (13,231) |
Disposals | (2,605) | |
Transferred to right-of-use assets | (10,202) | |
Transferred to others | 0 | 0 |
Ending balance | 30,919 | 31,680 |
Others [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 6,111 | 2,690 |
Additions | 5,780 | 4,486 |
Transferred to property, plant and equipment | (2,971) | (903) |
Transferred to lease prepayments | (7) | |
Transferred to right-of-use assets | (313) | |
Transferred to others | (304) | (155) |
Ending balance | ¥ 8,303 | ¥ 6,111 |
Right-of use assets - Summary o
Right-of use assets - Summary of Right To Use Of Assets (Detail) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2019CNY (¥) | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Beginning balance | ¥ 0 | [1] |
Beginning balance, Adjusted | 137,351 | |
Transfer from construction in progress (Note 20) | 10,515 | |
Ending balance | 153,211 | |
Gross carrying amount [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Beginning balance | 193,100 | |
Additions | 22,375 | |
Transfer from construction in progress (Note 20) | 10,515 | |
Reclassification with investment properties | 16 | |
Transfers to property, plant and equipment on exercise of purchase option | (2,641) | |
Disposals | (780) | |
Ending balance | 222,585 | |
Accumulated amortization and impairment losses [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Beginning balance | 55,749 | |
Amortization charge for the year | 15,263 | |
Reclassification with investment properties | 5 | |
Transfers to property, plant and equipment on exercise of purchase option | (874) | |
Disposals | (769) | |
Ending balance | 69,374 | |
Others [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Beginning balance | 138 | |
Ending balance | 358 | |
Others [member] | Gross carrying amount [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Beginning balance | 138 | |
Additions | 51 | |
Transfer from construction in progress (Note 20) | 203 | |
Ending balance | 392 | |
Others [member] | Accumulated amortization and impairment losses [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Amortization charge for the year | 34 | |
Ending balance | 34 | |
Land use rights [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Beginning balance | 2,970 | |
Ending balance | 3,209 | |
Land use rights [member] | Gross carrying amount [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Beginning balance | 3,671 | |
Additions | 225 | |
Transfer from construction in progress (Note 20) | 110 | |
Reclassification with investment properties | 16 | |
Ending balance | 4,022 | |
Land use rights [member] | Accumulated amortization and impairment losses [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Beginning balance | 701 | |
Amortization charge for the year | 107 | |
Reclassification with investment properties | 5 | |
Ending balance | 813 | |
Aircraft and engines [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Beginning balance | 132,943 | |
Ending balance | 147,491 | |
Aircraft and engines [member] | Gross carrying amount [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Beginning balance | 187,991 | |
Additions | 20,609 | |
Transfer from construction in progress (Note 20) | 10,202 | |
Transfers to property, plant and equipment on exercise of purchase option | (2,641) | |
Disposals | (780) | |
Ending balance | 215,381 | |
Aircraft and engines [member] | Accumulated amortization and impairment losses [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Beginning balance | 55,048 | |
Amortization charge for the year | 14,485 | |
Transfers to property, plant and equipment on exercise of purchase option | (874) | |
Disposals | (769) | |
Ending balance | 67,890 | |
Buildings [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Beginning balance | 1,300 | |
Ending balance | 2,153 | |
Buildings [member] | Gross carrying amount [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Beginning balance | 1,300 | |
Additions | 1,490 | |
Ending balance | 2,790 | |
Buildings [member] | Accumulated amortization and impairment losses [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Amortization charge for the year | 637 | |
Ending balance | ¥ 637 | |
[1] | The Group has initially applied IFRS 16 at January 1, 2019 using the modified retrospective approach. Under this approach, comparative information is not restated. See Note 2(b). |
Right-of use assets -Summary Of
Right-of use assets -Summary Of Analysis Of Expense Items In Relation To Leases Recognised In Profit Or Loss (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of quantitative information about right-of-use assets [abstract] | |||
Interest on lease liabilities | ¥ 5,302 | ¥ 2,409 | ¥ 2,009 |
Interest rate swaps: cash flow hedge, reclassified from equity (Note 15) | (18) | (13) | 17 |
Expense relating to leases with remaining lease term ending on or before December 31, 2019 | 2,092 | ||
Expense relating to leases of variable lease payments not included in the measurement of lease liabilities | ¥ 81 | ||
Total minimum lease payments for leases previously classified as operating leases under IAS 17 | ¥ 9,920 | ¥ 8,996 |
Right-of use assets - Additiona
Right-of use assets - Additional Information (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2019 | ||
Disclosure of Lease Prepayments [Line Items] | |||
Land use rights | ¥ 0 | [1] | ¥ 153,211 |
Approximate aggregate carrying value of certain land use rights mortgaged for certain bank borrowings | 88 | 87 | |
In the process of applying for certain title/right certificates [member] | |||
Disclosure of Lease Prepayments [Line Items] | |||
Land use rights | ¥ 922 | ¥ 843 | |
Bottom of range [member] | |||
Disclosure of Lease Prepayments [Line Items] | |||
Term for amortization using straight line method of acquiring cost of land held under operating lease | 30 years | ||
Top of range [member] | |||
Disclosure of Lease Prepayments [Line Items] | |||
Term for amortization using straight line method of acquiring cost of land held under operating lease | 70 years | ||
[1] | The Group has initially applied IFRS 16 at January 1, 2019 using the modified retrospective approach. Under this approach, comparative information is not restated. See Note 2(b). |
Goodwill - Summary of Goodwill
Goodwill - Summary of Goodwill (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of reconciliation of changes in goodwill [abstract] | |||
Beginning balance | ¥ 237 | [1] | ¥ 237 |
[1] | The Group has initially applied IFRS 16 at January 1, 2019 using the modified retrospective approach. Under this approach, comparative information is not restated. See Note 2(b). |
Goodwill Allocation to Cash Gen
Goodwill Allocation to Cash Generating Units CGU Identified According to Type of Operation (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Oct. 13, 2017 | |
Disclosure of reconciliation of changes in goodwill [line items] | |||||
Goodwill | ¥ 237 | ¥ 237 | [1] | ¥ 237 | |
Southern Airlines Group Import and Export Trading Company [member] | |||||
Disclosure of reconciliation of changes in goodwill [line items] | |||||
Goodwill | 182 | 182 | |||
Xiamen Airlines Culture and Media Co., Ltd [member] | |||||
Disclosure of reconciliation of changes in goodwill [line items] | |||||
Goodwill | ¥ 55 | ¥ 55 | ¥ 55 | ||
[1] | The Group has initially applied IFRS 16 at January 1, 2019 using the modified retrospective approach. Under this approach, comparative information is not restated. See Note 2(b). |
Goodwill - Additional Informati
Goodwill - Additional Information (Detail) | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of information for cash-generating units [line items] | ||
Discount rate used in determining recoverable amount of the CGU based on value-in-use calculation | 9.00% | |
Bottom of range [member] | ||
Disclosure of information for cash-generating units [line items] | ||
Discount rate used in determining recoverable amount of the CGU based on value-in-use calculation | 10.50% | 10.50% |
Top of range [member] | ||
Disclosure of information for cash-generating units [line items] | ||
Discount rate used in determining recoverable amount of the CGU based on value-in-use calculation | 13.50% | 13.50% |
Subsidiaries - List of Particul
Subsidiaries - List of Particular Subsidiaries Principally Affect Results Assets or Liabilities (Detail) | 12 Months Ended | ||||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019HKD ($) | Dec. 31, 2019AUD ($) | Dec. 31, 2018CNY (¥) | [1] | |
Disclosure of subsidiaries [line items] | |||||
Registered capital | ¥ 12,267,000,000 | ¥ 12,267,000,000 | |||
China Southern Airlines Henan Airlines Company Limited [Member] | |||||
Disclosure of subsidiaries [line items] | |||||
Place of establishment/operation | PRC | ||||
Registered capital | ¥ 6,000,000,000 | ||||
Proportion of ownership interest held by the Company | 60.00% | ||||
Principal activity | Airline transportation | ||||
Xiamen Airlines Company Limited [member] | |||||
Disclosure of subsidiaries [line items] | |||||
Place of establishment/operation | PRC | ||||
Registered capital | ¥ 8,000,000,000 | ||||
Proportion of ownership interest held by the Company | 55.00% | ||||
Principal activity | Airline transportation | ||||
Chongqing Airlines Company Limited [member] | |||||
Disclosure of subsidiaries [line items] | |||||
Place of establishment/operation | PRC | ||||
Registered capital | ¥ 1,200,000,000 | ||||
Proportion of ownership interest held by the Company | 60.00% | ||||
Principal activity | Airline transportation | ||||
Shantou Airlines Company Limited [member] | |||||
Disclosure of subsidiaries [line items] | |||||
Place of establishment/operation | PRC | ||||
Registered capital | ¥ 280,000,000 | ||||
Proportion of ownership interest held by the Company | 60.00% | ||||
Principal activity | Airline transportation | ||||
Zhuhai Airlines Company Limited [member] | |||||
Disclosure of subsidiaries [line items] | |||||
Place of establishment/operation | PRC | ||||
Registered capital | ¥ 250,000,000 | ||||
Proportion of ownership interest held by the Company | 60.00% | ||||
Principal activity | Airline transportation | ||||
Guizhou Airlines Company Limited [member] | |||||
Disclosure of subsidiaries [line items] | |||||
Place of establishment/operation | PRC | ||||
Registered capital | ¥ 1,220,000,000 | ||||
Proportion of ownership interest held by the Company | 60.00% | ||||
Principal activity | Airline transportation | ||||
Guangzhou Nanland Air Catering Company Limited [member] | |||||
Disclosure of subsidiaries [line items] | |||||
Place of establishment/operation | PRC | ||||
Registered capital | ¥ 240,000,000 | ||||
Proportion of ownership interest held by the Company | 70.50% | ||||
Principal activity | Air catering | ||||
Guangzhou Baiyun International Logistic Company Limited [member] | |||||
Disclosure of subsidiaries [line items] | |||||
Place of establishment/operation | PRC | ||||
Registered capital | ¥ 50,000,000 | ||||
Proportion of ownership interest held by the Company | 61.00% | ||||
Principal activity | Logistics operations | ||||
Beijing Southern Airlines Ground Services Company Limited [member] | |||||
Disclosure of subsidiaries [line items] | |||||
Place of establishment/operation | PRC | ||||
Registered capital | ¥ 18,000,000 | ||||
Proportion of ownership interest held by the Company | 100.00% | ||||
Principal activity | Airport ground services | ||||
Nan Lung International Freight Limited [member] | |||||
Disclosure of subsidiaries [line items] | |||||
Place of establishment/operation | Hong Kong | ||||
Registered capital | $ | $ 3,270,000 | ||||
Proportion of ownership interest held by the Company | 51.00% | ||||
Principal activity | Freight services | ||||
Southern Airlines General Aviation Company Limited [member] | |||||
Disclosure of subsidiaries [line items] | |||||
Place of establishment/operation | PRC | ||||
Registered capital | ¥ 1,000,000,000 | ||||
Proportion of ownership interest held by the Company | 100.00% | ||||
Principal activity | General aviation | ||||
Southern Airlines Group Import and Export Trading Company [member] | |||||
Disclosure of subsidiaries [line items] | |||||
Place of establishment/operation | PRC | ||||
Registered capital | ¥ 15,000,000 | ||||
Proportion of ownership interest held by the Company | 100.00% | ||||
Principal activity | Import and export agent services | ||||
Zhuhai Xiang Yi Aviation Technology Company Limited [member] | |||||
Disclosure of subsidiaries [line items] | |||||
Place of establishment/operation | PRC | ||||
Registered capital | ¥ 469,848,000 | ||||
Proportion of ownership interest held by the Company | 100.00% | ||||
Principal activity | Flight simulation services | ||||
China Southern Airlines Xiongan Airlines Company Limited [member] | |||||
Disclosure of subsidiaries [line items] | |||||
Place of establishment/operation | PRC | ||||
Registered capital | ¥ 600,000,000 | ||||
Proportion of ownership interest held by the Company | 100.00% | ||||
Principal activity | Airline transportation | ||||
Flying College [member] | |||||
Disclosure of subsidiaries [line items] | |||||
Place of establishment/operation | Australia | ||||
Registered capital | $ | $ 39,651,627 | ||||
Proportion of ownership interest held by the Company | 84.30% | ||||
Principal activity | Pilot training services | ||||
Southern Airlines Freight and Logistics Guangzhou Co Ltd [member] | |||||
Disclosure of subsidiaries [line items] | |||||
Place of establishment/operation | PRC | ||||
Registered capital | ¥ 1,000,000,000 | ||||
Proportion of ownership interest held by the Company | 100.00% | ||||
Principal activity | Logistics operations | ||||
Shenyang Northern Aircraft Maintenance Co Ltd [member] | |||||
Disclosure of subsidiaries [line items] | |||||
Place of establishment/operation | PRC | ||||
Registered capital | ¥ 31,520,545 | ||||
Proportion of ownership interest held by the Company | 100.00% | ||||
Principal activity | Aircraft repair and maintenance services | ||||
Guangdong Southern Airline Pearl Aviation Services Company Limited [member] | |||||
Disclosure of subsidiaries [line items] | |||||
Place of establishment/operation | PRC | ||||
Registered capital | ¥ 5,000,000 | ||||
Proportion of ownership interest held by the Company | 100.00% | ||||
Principal activity | Hotel management services | ||||
[1] | The Group has initially applied IFRS 16 at January 1, 2019 using the modified retrospective approach. Under this approach, comparative information is not restated. See Note 2(b). |
Subsidiaries - Additional Infor
Subsidiaries - Additional Information (Detail) - CNY (¥) ¥ in Millions | Nov. 20, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of subsidiaries [line items] | |||||
Capital injection | ¥ 72 | ¥ 404 | |||
Non-controlling interests | ¥ 13,223 | 13,212 | [1] | ||
Xiamen Airlines Culture and Media Co., Ltd [member] | |||||
Disclosure of subsidiaries [line items] | |||||
Profit (loss) from the acquisition date to year end | 1 | ||||
Revenue from the acquisition date to year end | 7 | ||||
Consolidated revenue increase if acquisition had occurred at beginning of year | 44 | ||||
Consolidated profit increase if acquisition had occurred at beginning of year | 2 | ||||
Non-controlling interests | ¥ 9,003 | ¥ 9,035 | |||
China Southern West Australian Flying College Proprietary Limited [member] | |||||
Disclosure of subsidiaries [line items] | |||||
Capital injection | ¥ 63 | ||||
Proportion of ownership interest held by the Company | 48.12% | 84.30% | |||
Profit (loss) from the acquisition date to year end | ¥ (5) | ||||
Consolidated profit decrease if acquisition had occurred at beginning of year | 60 | ||||
Consolidated revenue increase if acquisition had occurred at beginning of year | ¥ 0 | ||||
Zhuhai Xiang Yi Aviation Technology Company Limited [member] | |||||
Disclosure of subsidiaries [line items] | |||||
Proportion of ownership interest held by the Company | 100.00% | ||||
Profit (loss) from the acquisition date to year end | 15 | ||||
Revenue from the acquisition date to year end | 196 | ||||
Consolidated revenue increase if acquisition had occurred at beginning of year | 424 | ||||
Consolidated profit increase if acquisition had occurred at beginning of year | ¥ 53 | ||||
Shenyang Northern Aircraft Maintenance Co Ltd [member] | |||||
Disclosure of subsidiaries [line items] | |||||
Proportion of ownership interest held by the Company | 100.00% | ||||
Profit (loss) from the acquisition date to year end | ¥ 1 | ||||
Consolidated profit decrease if acquisition had occurred at beginning of year | 4 | ||||
Consolidated revenue increase if acquisition had occurred at beginning of year | 21 | ||||
Revenue from the acquisition date to year end | ¥ 39 | ||||
Guangdong Southern Airline Pearl Aviation Services Company Limited [member] | |||||
Disclosure of subsidiaries [line items] | |||||
Proportion of ownership interest held by the Company | 100.00% | ||||
Consolidated profit decrease if acquisition had occurred at beginning of year | ¥ 17 | ||||
Consolidated revenue increase if acquisition had occurred at beginning of year | ¥ 499 | ||||
[1] | The Group has initially applied IFRS 16 at January 1, 2019 using the modified retrospective approach. Under this approach, comparative information is not restated. See Note 2(b). |
Subsidiaries - Financial Inform
Subsidiaries - Financial Information Related to Acquisitions (Detail) $ in Thousands, ¥ in Millions | Dec. 17, 2019CNY (¥) | Apr. 23, 2019CNY (¥) | Nov. 20, 2018CNY (¥) | Jul. 10, 2017CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | [1] | Dec. 31, 2017CNY (¥) | Jul. 10, 2017USD ($) | Dec. 31, 2016CNY (¥) | [1] | |
Disclosure of detailed information about business combination [line items] | ||||||||||||
Property, plant and equipment, net | ¥ 84,788 | ¥ 170,692 | ¥ 170,692 | |||||||||
Non-current assets | 290,190 | 222,877 | ||||||||||
Current assets | 16,738 | 24,072 | ||||||||||
Current liabilities | (95,490) | (83,687) | ||||||||||
Cash and cash equivalents | 1,849 | 6,928 | 6,826 | [1] | ¥ 4,152 | |||||||
Borrowings | (51,180) | (54,417) | ||||||||||
Deferred tax liabilities | (239) | (676) | ||||||||||
Net cash (inflow) outflow | (176) | (6) | 682 | [1] | ||||||||
Non-current liabilities | ¥ (134,109) | ¥ (84,793) | ||||||||||
China Southern West Australian Flying College Proprietary Limited [member] | ||||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||||
Non-current assets | ¥ 153 | |||||||||||
Current assets | 77 | |||||||||||
Current liabilities | (155) | |||||||||||
Total net identifiable assets | 75 | |||||||||||
Cash consideration paid | (63) | |||||||||||
Cash and cash equivalents acquired | 69 | |||||||||||
Net cash (inflow) outflow | ¥ 6 | |||||||||||
Zhuhai Xiang Yi Aviation Technology Company Limited [member] | ||||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||||
Property, plant and equipment, net | ¥ 1,556 | |||||||||||
Lease prepayments | 115 | |||||||||||
Trade and other receivables | 70 | |||||||||||
Cash and cash equivalents | 41 | |||||||||||
Other assets | 32 | |||||||||||
Trade and other payables | (34) | |||||||||||
Borrowings | (342) | |||||||||||
Deferred tax liabilities | (30) | |||||||||||
Other liabilities | (24) | |||||||||||
Total net identifiable assets | 1,384 | |||||||||||
Cash consideration paid | (678) | $ (99,520) | ||||||||||
Cash and cash equivalents acquired | 41 | |||||||||||
Net cash (inflow) outflow | ¥ (637) | |||||||||||
Fair value of the originally held 51% equity interests | 706 | |||||||||||
Less: carrying value of the originally held 51% equity interests | (597) | |||||||||||
Remeasurement of the originally held 51% equity interests | ¥ 109 | |||||||||||
Shenyang Northern Aircraft Maintenance Co Ltd [member] | ||||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||||
Non-current assets | ¥ 31 | |||||||||||
Current assets | 41 | |||||||||||
Current liabilities | (3) | |||||||||||
Total net identifiable assets | 63 | |||||||||||
Cash consideration paid | (14) | |||||||||||
Cash and cash equivalents acquired | 26 | |||||||||||
Net cash (inflow) outflow | 12 | |||||||||||
Non-current liabilities | ¥ (6) | |||||||||||
Guangdong Southern Airline Pearl Aviation Services Company Limited [member] | ||||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||||
Non-current assets | ¥ 19 | |||||||||||
Current assets | 252 | |||||||||||
Current liabilities | (257) | |||||||||||
Total net identifiable assets | 14 | |||||||||||
Cash consideration paid | (9) | |||||||||||
Cash and cash equivalents acquired | 173 | |||||||||||
Net cash (inflow) outflow | ¥ 164 | |||||||||||
[1] | The Group has initially applied IFRS 16 at January 1, 2019 using the modified retrospective approach. Under this approach, comparative information is not restated. See Note 2(b). |
Subsidiaries - List of Partic_2
Subsidiaries - List of Particular Subsidiaries Principally Affect Results Assets or Liabilities (Parenthetical) (Detail) $ in Thousands, ¥ in Millions | Dec. 17, 2019CNY (¥) | Apr. 23, 2019CNY (¥) | Oct. 13, 2017CNY (¥) | Jul. 10, 2017CNY (¥) | Jul. 10, 2017USD ($) |
Zhuhai Xiang Yi Aviation Technology Company Limited [member] | |||||
Disclosure of subsidiaries [line items] | |||||
Percentage of voting equity interests acquired | 49.00% | 49.00% | |||
Cash consideration paid | ¥ 678 | $ 99,520 | |||
Xiamen Airlines Culture and Media Co., Ltd [member] | |||||
Disclosure of subsidiaries [line items] | |||||
Percentage of voting equity interests acquired | 51.00% | ||||
Cash consideration paid | ¥ 47 | ||||
Percentage of equity interest before acquisition | 49.00% | ||||
Shenyang Northern Aircraft Maintenance Co Ltd [member] | |||||
Disclosure of subsidiaries [line items] | |||||
Percentage of voting equity interests acquired | 21.00% | ||||
Cash consideration paid | ¥ 14 | ||||
Guangdong Southern Airline Pearl Aviation Services Company Limited [member] | |||||
Disclosure of subsidiaries [line items] | |||||
Percentage of voting equity interests acquired | 100.00% | ||||
Cash consideration paid | ¥ 9 |
Subsidiaries - Financial Info_2
Subsidiaries - Financial Information Related to Acquisition of Xiamen Airlines Culture and Media Co Ltd (Detail) - CNY (¥) ¥ in Millions | Oct. 13, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | [1] | ||
Disclosure of detailed information about business combination [line items] | ||||||||
Cash and cash equivalents | ¥ 1,849 | ¥ 6,928 | [1] | ¥ 6,826 | [1] | ¥ 4,152 | ||
Net cash (inflow) outflow | (176) | (6) | [1] | 682 | [1] | |||
Goodwill | 237 | 237 | [1] | ¥ 237 | ||||
Xiamen Airlines Culture and Media Co., Ltd [member] | ||||||||
Disclosure of detailed information about business combination [line items] | ||||||||
Trade and other receivables | ¥ 46 | |||||||
Cash consideration paid | (47) | |||||||
Cash and cash equivalents | 2 | |||||||
Cash and cash equivalents acquired | 2 | |||||||
Trade and other payables | (11) | |||||||
Net cash (inflow) outflow | (45) | |||||||
Total consideration transferred | 47 | |||||||
Fair value of the originally held 49% equity interests | 45 | |||||||
Total net identifiable assets | 37 | |||||||
Goodwill | ¥ 55 | ¥ 55 | ¥ 55 | |||||
[1] | The Group has initially applied IFRS 16 at January 1, 2019 using the modified retrospective approach. Under this approach, comparative information is not restated. See Note 2(b). |
Subsidiaries - Summarized Finan
Subsidiaries - Summarized Financial Information of Subsidiary with Material Non-controlling Interests: Xiamen Airlines Company Limited (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Disclosure of subsidiaries [line items] | |||||
Current assets | ¥ 16,738 | ¥ 24,072 | [1] | ||
Non-current assets | 290,190 | 222,877 | [1] | ||
Current liabilities | (95,490) | (83,687) | [1] | ||
Non-current liabilities | (134,109) | (84,793) | [1] | ||
Net assets | 77,329 | 78,469 | [1] | ||
Carrying amount of non-controlling interests | 13,223 | 13,212 | [1] | ||
Revenue | 154,322 | 143,623 | ¥ 127,806 | [2] | |
Profit for the year | 3,084 | 3,364 | [1] | 6,898 | [1],[3] |
Total comprehensive income | 3,001 | 3,619 | [1] | 7,011 | [1],[3] |
Profit allocated to non-controlling interests | 444 | 469 | [1] | 937 | [1],[3] |
Net cash generated from operating activities | 31,175 | 15,388 | [1] | 17,732 | [1] |
Net cash (used in) / generated from investing activities | (14,427) | (20,517) | [1] | (8,236) | [1] |
Net cash used in financing activities | ¥ (21,833) | ¥ 5,220 | [1] | ¥ (6,796) | [1] |
Xiamen Airlines Company Limited [member] | |||||
Disclosure of subsidiaries [line items] | |||||
Non-controlling interests percentage | 45.00% | 45.00% | |||
Current assets | ¥ 3,010 | ¥ 4,029 | |||
Non-current assets | 53,855 | 43,234 | |||
Current liabilities | (15,494) | (14,397) | |||
Non-current liabilities | (22,233) | (13,678) | |||
Net assets | 19,138 | 19,188 | |||
Carrying amount of non-controlling interests | 9,003 | 9,035 | |||
Revenue | 32,612 | 30,225 | |||
Profit for the year | 784 | 915 | |||
Total comprehensive income | 798 | 1,111 | |||
Profit allocated to non-controlling interests | 350 | 393 | |||
Dividend paid to non-controlling interests | 45 | 68 | |||
Net cash generated from operating activities | 8,259 | 3,559 | |||
Net cash (used in) / generated from investing activities | (1,990) | 889 | |||
Net cash used in financing activities | ¥ (6,097) | ¥ (4,363) | |||
[1] | The Group has initially applied IFRS 16 at January 1, 2019 using the modified retrospective approach. Under this approach, comparative information is not restated. See Note 2(b). | ||||
[2] | The Group has initially applied IFRS 15 at January 1, 2018, using the cumulative effect method. Under this method, the comparative information is not restated (see Note 2(b)). | ||||
[3] | The Group has initially applied IFRS 15 and IFRS 9 at January 1, 2018. Under the transition methods chosen, comparative information is not restated. See Note 2(b). |
Interest in Associates - Summar
Interest in Associates - Summary of Principal Associates (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | ||||
Disclosure of associates [line items] | |||||
Share of net assets | ¥ 3,322 | ¥ 3,181 | [1] | ||
Southern Airlines Group Finance Co., Ltd [member] | |||||
Disclosure of associates [line items] | |||||
Place of establishment/operation | [2] | PRC | |||
Group's effective interest | 48.59% | [2] | 33.98% | ||
Proportion of ownership interest held by The Company | [2] | 41.81% | |||
Proportion of ownership interest held by Subsidiaries | [2] | 6.78% | |||
Proportion of voting rights held by the Group | [2] | 48.59% | |||
Principal activity | [2] | Provision of airlines financial services | |||
Sichuan Airlines Co., Ltd [member] | |||||
Disclosure of associates [line items] | |||||
Place of establishment/operation | PRC | ||||
Group's effective interest | 39.00% | ||||
Proportion of ownership interest held by The Company | 39.00% | ||||
Proportion of ownership interest held by Subsidiaries | 0.00% | ||||
Proportion of voting rights held by the Group | 39.00% | ||||
Principal activity | Airline transportation | ||||
Southern Airlines Culture And Media Co., Ltd. [member] | |||||
Disclosure of associates [line items] | |||||
Place of establishment/operation | PRC | ||||
Group's effective interest | 40.00% | ||||
Proportion of ownership interest held by The Company | 40.00% | ||||
Proportion of ownership interest held by Subsidiaries | 0.00% | ||||
Proportion of voting rights held by the Group | 40.00% | ||||
Principal activity | Advertising services | ||||
Shenyang Konggang Logistic Co.,Ltd [Member] | |||||
Disclosure of associates [line items] | |||||
Place of establishment/operation | PRC | ||||
Group's effective interest | 42.80% | ||||
Proportion of ownership interest held by The Company | 42.80% | ||||
Proportion of ownership interest held by Subsidiaries | 0.00% | ||||
Proportion of voting rights held by the Group | 42.80% | ||||
Principal activity | Ground services | ||||
Xinjiang Civil Aviation Property Management Limited [member] | |||||
Disclosure of associates [line items] | |||||
Place of establishment/operation | PRC | ||||
Group's effective interest | 42.80% | ||||
Proportion of ownership interest held by The Company | 42.80% | ||||
Proportion of ownership interest held by Subsidiaries | 0.00% | ||||
Proportion of voting rights held by the Group | 42.80% | ||||
Principal activity | Property management | ||||
[1] | The Group has initially applied IFRS 16 at January 1, 2019 using the modified retrospective approach. Under this approach, comparative information is not restated. See Note 2(b). | ||||
[2] | In March 2019, the Group made capital injection of RMB500 million into SA Finance, and the share of equity interest held by the Group increased from 33.98% to 48.59%; |
Interest in Associates - Summ_2
Interest in Associates - Summary of Principal Associates (Parenthetical) (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | [1] | |||
Disclosure of associates [line items] | ||||||
Additional capital injected to acquire controlling interest | ¥ (176) | ¥ (6) | [1] | ¥ 682 | ||
Southern Airlines Group Finance Co., Ltd [member] | ||||||
Disclosure of associates [line items] | ||||||
Additional capital injected to acquire controlling interest | ¥ 500 | |||||
Group's effective interest | 48.59% | [2] | 33.98% | |||
[1] | The Group has initially applied IFRS 16 at January 1, 2019 using the modified retrospective approach. Under this approach, comparative information is not restated. See Note 2(b). | |||||
[2] | In March 2019, the Group made capital injection of RMB500 million into SA Finance, and the share of equity interest held by the Group increased from 33.98% to 48.59%; |
Interest in Associates - Summ_3
Interest in Associates - Summarized Financial Information of Aggregated Individually Immaterial Associates (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Disclosure of associates [line items] | |||||
Aggregate amounts of the Group's share of other comprehensive income | ¥ 3 | ¥ (4) | ¥ 2 | [1] | |
Aggregated individually immaterial associates [member] | |||||
Disclosure of associates [line items] | |||||
Aggregate carrying amount of individually immaterial associates | 3,322 | 3,181 | [2] | 3,031 | [2] |
Aggregate amounts of the Group's share of (Loss)/profit from continuing operations | (178) | 263 | [2] | 431 | [2] |
Aggregate amounts of the Group's share of other comprehensive income | 3 | (4) | [2] | 2 | [2] |
Aggregate amounts of the Group's share of total comprehensive income | ¥ (175) | ¥ 259 | [2] | ¥ 433 | [2] |
[1] | The Group has initially applied IFRS 9 at January 1, 2018. Under the transition methods chosen, comparative information is not restated. See Note 2(b). | ||||
[2] | The Group has initially applied IFRS 16 at January 1, 2019 using the modified retrospective approach. Under this approach, comparative information is not restated. See Note 2(b). |
Interest in Joint Ventures - Su
Interest in Joint Ventures - Summary of Principal Joint Ventures (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | [1] | |
Disclosure of joint ventures [line items] | |||
Interest in joint ventures | ¥ 3,124 | ¥ 2,812 | |
MTU Maintenance Zhuhai Company Limited [member] | |||
Disclosure of joint ventures [line items] | |||
Place of establishment/operation | PRC | ||
Group's effective interest | 50.00% | ||
Proportion of ownership interest held by The Company | 50.00% | ||
Proportion of ownership interest held by Subsidiaries | 0.00% | ||
Proportion of voting rights held by the Group | 50.00% | ||
Principal activity | Aircraft repair and maintenance services | ||
Guangzhou Aircraft Maintenance Engineering Co., Ltd [member] | |||
Disclosure of joint ventures [line items] | |||
Place of establishment/operation | PRC | ||
Group's effective interest | 50.00% | ||
Proportion of ownership interest held by The Company | 50.00% | ||
Proportion of ownership interest held by Subsidiaries | 0.00% | ||
Proportion of voting rights held by the Group | 50.00% | ||
Principal activity | Aircraft repair and maintenance services | ||
[1] | The Group has initially applied IFRS 16 at January 1, 2019 using the modified retrospective approach. Under this approach, comparative information is not restated. See Note 2(b). |
Interest in Joint Ventures - _2
Interest in Joint Ventures - Summarized Financial Information of Aggregated Individually Immaterial Joint Ventures (Detail) - Aggregated individually immaterial joint ventures [member] - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of joint ventures [line items] | |||
Aggregate carrying amount of individually immaterial joint ventures | ¥ 3,124 | ¥ 2,812 | ¥ 1,015 |
Aggregate amounts of the Group's share of Profit from continuing operations and total comprehensive income | ¥ 365 | ¥ 200 | ¥ 99 |
Financial Assets - Summary of F
Financial Assets - Summary of Financial Assets (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of financial assets [line items] | |||
Other equity instrument investment (FVOCI) | ¥ 1,049 | ¥ 1,080 | [1] |
Other non-current financial assets (FVPL) | 106 | 103 | |
Other financial assets | 0 | 440 | [1] |
Non listed shares [member] | |||
Disclosure of financial assets [line items] | |||
Other equity instrument investment (FVOCI) | 188 | 234 | |
Other non-current financial assets (FVPL) | 32 | 32 | |
Non-tradable shares [member] | |||
Disclosure of financial assets [line items] | |||
Other equity instrument investment (FVOCI) | 861 | 846 | |
Listed shares [member] | |||
Disclosure of financial assets [line items] | |||
Other non-current financial assets (FVPL) | ¥ 74 | ¥ 71 | |
[1] | The Group has initially applied IFRS 16 at January 1, 2019 using the modified retrospective approach. Under this approach, comparative information is not restated. See Note 2(b). |
Financial Assets - Summary of_2
Financial Assets - Summary of Financial Assets (Parenthetical) (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | [1],[2] | ||
Disclosure of financial assets [line items] | |||||
Dividend income | ¥ 0 | ¥ 0 | [1] | ¥ 18 | |
Unlisted equity securities [member] | |||||
Disclosure of financial assets [line items] | |||||
Dividend income | ¥ 23 | ¥ 20 | |||
[1] | The Group has initially applied IFRS 16 using the modified retrospective approach and adjusted the opening balances at January 1, 2019 to recognize right-of-use assets and lease liabilities relating to leases which were previously classified as operating leases under IAS 17. In the comparative periods in 2018 and 2017, cash payments under operating leases made by the Group as a lessee of RMB9,920 million and RMB8,996 million, respectively, were included in operating cash outflows in the consolidated cash flow statements. Under IFRS 16, except for short-term lease payments and payments for leases of low value assets not included in the measurement of lease liabilities, all other rentals paid on leases are now split into capital element and interest element and classified as financing cash outflows and operating cash outflows, respectively. Under the modified retrospective approach, the comparative information is not restated. Further details on the impact of the transition to IFRS 16 are set out in Note 2(b). | ||||
[2] | The Group has initially applied IFRS 15 and IFRS 9 at January 1, 2018. Under the transition methods chosen, comparative information is not restated. See Note 2(b). |
Derivative financial assets __3
Derivative financial assets / (liabilities) - Summary of Derivative Financial Instruments (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of detailed information about financial instruments [line items] | ||
Cross currency swaps | ¥ 218 | |
Interest rate swaps [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Interest rate swaps | 3 | ¥ 75 |
Cross Currency Swaps [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Cross currency swaps | 187 | ¥ (44) |
Forward foreign exchange contracts [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Forward foreign exchange contracts | ¥ 31 |
Derivative financial assets __4
Derivative financial assets / (liabilities) - Summary of Derivative Financial Instruments (Parenthetical) (Detail) ¥ in Millions | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) |
Bottom of range [member] | Fixed rate from 1.64% to 1.72% [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Borrowings interest rate | 1.75% | 1.75% | 1.75% | 1.75% |
Bottom of range [member] | Fixed rate from 3.20% to 3.91% [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Borrowings interest rate | 3.20% | 3.20% | ||
Top of range [member] | Fixed rate from 1.64% to 1.72% [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Borrowings interest rate | 5.03% | 5.03% | 5.03% | 5.03% |
Top of range [member] | Fixed rate from 3.20% to 3.91% [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Borrowings interest rate | 3.91% | 3.91% | ||
Interest rate swaps [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Notional principal of the outstanding derivative contracts | $ 620,000,000 | $ 979,000,000 | ||
Forward foreign exchange contracts [Member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Notional principal of the outstanding derivative contracts | 1,035,000,000 | 0 | ||
Fair value of the forward foreign exchange contracts | ¥ | ¥ 31 | ¥ 0 | ||
Cross Currency Swaps [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Notional principal of the outstanding derivative contracts | $ 325,000,000 | $ 393,000,000 | ||
Fair value of the cross currency swap | ¥ | ¥ 187 | ¥ 44 | ||
Cross Currency Swaps [member] | Bottom of range [member] | Fixed rate from 1.64% to 1.72% [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Borrowings interest rate | 1.64% | 1.64% | ||
Cross Currency Swaps [member] | Bottom of range [member] | Fixed rate from 3.39% to 3.67% [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Borrowings interest rate | 3.39% | 3.39% | ||
Cross Currency Swaps [member] | Top of range [member] | Fixed rate from 1.64% to 1.72% [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Borrowings interest rate | 1.72% | 1.72% | ||
Cross Currency Swaps [member] | Top of range [member] | Fixed rate from 3.39% to 3.67% [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Borrowings interest rate | 3.67% | 3.67% | ||
Cross Currency Swaps [member] | Top of range [member] | Fixed rate from 3.20% to 3.91% [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Borrowings interest rate | 3.91% | 3.91% | 3.91% | 3.91% |
Changes in fair value of fina_3
Changes in fair value of financial assets / (liabilities) - Summary of Changes in Fair Value of Financial Instruments (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of fair value measurement of assets [line items] | ||
Increase decrease in fair value measurement assets | ¥ 265 | ¥ 12 |
Other non current financial assets at fair value through profit loss [member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Increase decrease in fair value measurement assets | 3 | (8) |
Cross Currency Swaps [member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Increase decrease in fair value measurement assets | 231 | 20 |
Forward foreign exchange contracts [Member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Increase decrease in fair value measurement assets | ¥ 31 | ¥ 0 |
Deferred Tax Assets_(Liabilit_3
Deferred Tax Assets/(Liabilities) - Movements of Net Deferred Tax Assets (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Beginning balance | ¥ 890 | ¥ 1,079 |
Deferred income tax assets liability recognised in impact on initial application of IFRS 9/15/16 | 895 | (37) |
Acquired in business combination | (6) | |
(Charged)/credited to consolidated income statement | 650 | (65) |
Credited to other comprehensive income | 24 | (87) |
Ending balance | 2,453 | 890 |
Deferred tax liabilities [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Beginning balance | (1,145) | (1,076) |
Deferred income tax assets liability recognised in impact on initial application of IFRS 9/15/16 | 0 | (36) |
Acquired in business combination | (6) | |
(Charged)/credited to consolidated income statement | 111 | 54 |
Credited to other comprehensive income | 24 | (87) |
Ending balance | (1,016) | (1,145) |
Deferred tax liabilities [member] | Accrued expenses [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Beginning balance | (211) | (216) |
Deferred income tax assets liability recognised in impact on initial application of IFRS 9/15/16 | 0 | 0 |
Acquired in business combination | 0 | |
(Charged)/credited to consolidated income statement | 20 | 5 |
Credited to other comprehensive income | 0 | 0 |
Ending balance | (191) | (211) |
Deferred tax liabilities [member] | Others [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Beginning balance | (18) | (49) |
Deferred income tax assets liability recognised in impact on initial application of IFRS 9/15/16 | 0 | 0 |
Acquired in business combination | 0 | |
(Charged)/credited to consolidated income statement | 4 | 31 |
Credited to other comprehensive income | 0 | 0 |
Ending balance | (14) | (18) |
Deferred tax liabilities [member] | Depreciation allowances under tax in excess of the related depreciation under accounting [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Beginning balance | (618) | (633) |
Deferred income tax assets liability recognised in impact on initial application of IFRS 9/15/16 | 0 | 0 |
Acquired in business combination | 0 | |
(Charged)/credited to consolidated income statement | 140 | 15 |
Credited to other comprehensive income | 0 | 0 |
Ending balance | (478) | (618) |
Deferred tax liabilities [member] | Change in fair value of available-for-sale equity securities [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Beginning balance | 0 | (141) |
Deferred income tax assets liability recognised in impact on initial application of IFRS 9/15/16 | 141 | |
(Charged)/credited to consolidated income statement | 0 | |
Credited to other comprehensive income | 0 | |
Ending balance | 0 | |
Deferred tax liabilities [member] | Fair value remeasurement of identifiable assets in business combination [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Beginning balance | (25) | (26) |
Deferred income tax assets liability recognised in impact on initial application of IFRS 9/15/16 | 0 | 0 |
Acquired in business combination | (6) | |
(Charged)/credited to consolidated income statement | 2 | 1 |
Credited to other comprehensive income | 0 | 0 |
Ending balance | (29) | (25) |
Deferred tax liabilities [member] | Change in fair value of other equity instrument investments [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Beginning balance | (236) | 0 |
Deferred income tax assets liability recognised in impact on initial application of IFRS 9/15/16 | 0 | (156) |
Acquired in business combination | 0 | |
(Charged)/credited to consolidated income statement | 0 | 0 |
Credited to other comprehensive income | 7 | (80) |
Ending balance | (229) | (236) |
Deferred tax liabilities [member] | Change in fair value of other non-current financial assets [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Beginning balance | (19) | 0 |
Deferred income tax assets liability recognised in impact on initial application of IFRS 9/15/16 | 0 | (21) |
Acquired in business combination | 0 | |
(Charged)/credited to consolidated income statement | (1) | 2 |
Credited to other comprehensive income | 0 | 0 |
Ending balance | (20) | (19) |
Deferred tax liabilities [member] | Change in fair value of derivative financial assets [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Beginning balance | (18) | (11) |
Deferred income tax assets liability recognised in impact on initial application of IFRS 9/15/16 | 0 | |
Acquired in business combination | 0 | |
(Charged)/credited to consolidated income statement | 0 | 0 |
Credited to other comprehensive income | 17 | (7) |
Ending balance | (1) | (18) |
Deferred tax liabilities [member] | Change in fair value of financial assets [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Beginning balance | 0 | |
Deferred income tax assets liability recognised in impact on initial application of IFRS 9/15/16 | 0 | |
Acquired in business combination | 0 | |
(Charged)/credited to consolidated income statement | (54) | |
Ending balance | (54) | 0 |
Deferred tax assets [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Beginning balance | 2,035 | 2,155 |
Deferred income tax assets liability recognised in impact on initial application of IFRS 9/15/16 | 895 | (1) |
Acquired in business combination | 0 | |
(Charged)/credited to consolidated income statement | 539 | (119) |
Credited to other comprehensive income | 0 | 0 |
Ending balance | 3,469 | 2,035 |
Deferred tax assets [member] | Net effect on right of use assets [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Beginning balance | 0 | |
Deferred income tax assets liability recognised in impact on initial application of IFRS 9/15/16 | 1,312 | |
Acquired in business combination | 0 | |
(Charged)/credited to consolidated income statement | 511 | |
Credited to other comprehensive income | 0 | |
Ending balance | 1,823 | 0 |
Deferred tax assets [member] | Accrued expenses [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Beginning balance | 929 | 1,020 |
Deferred income tax assets liability recognised in impact on initial application of IFRS 9/15/16 | 0 | 0 |
Acquired in business combination | 0 | |
(Charged)/credited to consolidated income statement | 185 | (91) |
Credited to other comprehensive income | 0 | 0 |
Ending balance | 1,114 | 929 |
Deferred tax assets [member] | Provision for major overhauls [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Beginning balance | 697 | 691 |
Deferred income tax assets liability recognised in impact on initial application of IFRS 9/15/16 | (417) | 0 |
Acquired in business combination | 0 | |
(Charged)/credited to consolidated income statement | (18) | 6 |
Credited to other comprehensive income | 0 | 0 |
Ending balance | 262 | 697 |
Deferred tax assets [member] | Deferred revenue [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Beginning balance | 0 | 88 |
Deferred income tax assets liability recognised in impact on initial application of IFRS 9/15/16 | (88) | |
(Charged)/credited to consolidated income statement | 0 | |
Credited to other comprehensive income | 0 | |
Ending balance | 0 | |
Deferred tax assets [member] | Provision for impairment losses [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Beginning balance | 210 | 248 |
Deferred income tax assets liability recognised in impact on initial application of IFRS 9/15/16 | 0 | 0 |
Acquired in business combination | 0 | |
(Charged)/credited to consolidated income statement | (129) | (38) |
Credited to other comprehensive income | 0 | 0 |
Ending balance | 81 | 210 |
Deferred tax assets [member] | Provision for tax losses [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Beginning balance | 22 | 10 |
Deferred income tax assets liability recognised in impact on initial application of IFRS 9/15/16 | 0 | 0 |
Acquired in business combination | 0 | |
(Charged)/credited to consolidated income statement | (15) | 12 |
Credited to other comprehensive income | 0 | 0 |
Ending balance | 7 | 22 |
Deferred tax assets [member] | Change in fair value of derivative financial liabilities [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Beginning balance | 11 | 16 |
Deferred income tax assets liability recognised in impact on initial application of IFRS 9/15/16 | 0 | 0 |
Acquired in business combination | 0 | |
(Charged)/credited to consolidated income statement | (11) | (5) |
Credited to other comprehensive income | 0 | 0 |
Ending balance | 0 | 11 |
Deferred tax assets [member] | Others [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Beginning balance | 85 | 82 |
Deferred income tax assets liability recognised in impact on initial application of IFRS 9/15/16 | 0 | 0 |
Acquired in business combination | 0 | |
(Charged)/credited to consolidated income statement | 29 | 3 |
Credited to other comprehensive income | 0 | 0 |
Ending balance | 114 | 85 |
Deferred tax assets [member] | Contract Liabilities Or Other Non Current Liabilities [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Beginning balance | 81 | 0 |
Deferred income tax assets liability recognised in impact on initial application of IFRS 9/15/16 | 0 | 87 |
Acquired in business combination | 0 | |
(Charged)/credited to consolidated income statement | (13) | (6) |
Credited to other comprehensive income | 0 | 0 |
Ending balance | ¥ 68 | ¥ 81 |
Deferred Tax Assets_(Liabilit_4
Deferred Tax Assets/(Liabilities) - Summary of Reconciliation to the Consolidated Statement of Financial Position (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [abstract] | ||||
Net deferred tax asset recognized in the statement of financial position | ¥ 2,692 | ¥ 1,566 | [1] | |
Net deferred tax liability recognized in the statement of financial position | (239) | (676) | [1] | |
Deferred tax liability asset | ¥ 2,453 | ¥ 890 | ¥ 1,079 | |
[1] | The Group has initially applied IFRS 16 at January 1, 2019 using the modified retrospective approach. Under this approach, comparative information is not restated. See Note 2(b). |
Deferred Tax Assets_(Liabilit_5
Deferred Tax Assets/(Liabilities) - Additional Information (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [abstract] | ||
Maximum period available in the PRC for tax losses carrying forward to set off future assessable income | five years | |
Unused tax losses for which no deferred tax assets has been recognized | ¥ 667 | ¥ 492 |
Other deductible temporary differences for which no deferred tax assets has been recognized | ¥ 951 | ¥ 822 |
Deferred Tax Assets_(Liabilit_6
Deferred Tax Assets/(Liabilities) - Analysis of Expiry Dates of Unrecognized Unused Tax Losses (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Unused tax losses for which no deferred tax assets has been recognized | ¥ 667 | ¥ 492 |
Expiring in 2019 [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Unused tax losses for which no deferred tax assets has been recognized | 0 | 193 |
Expiring in 2020 [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Unused tax losses for which no deferred tax assets has been recognized | 0 | 0 |
Expiring in 2021 [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Unused tax losses for which no deferred tax assets has been recognized | 92 | 95 |
2022 [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Unused tax losses for which no deferred tax assets has been recognized | 82 | 82 |
2023 [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Unused tax losses for which no deferred tax assets has been recognized | 116 | 122 |
2024 [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Unused tax losses for which no deferred tax assets has been recognized | ¥ 377 | ¥ 0 |
Other Assets - Summary of Other
Other Assets - Summary of Other Assets (Detail) - CNY (¥) ¥ in Millions | Jan. 01, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |||
Disclosure of other non-current assets [line items] | ||||||
Beginning balance | ¥ 1,776 | [1] | ¥ 1,776 | [1] | ¥ 1,394 | |
Prepayments to related parties for acquisition of long-term assets | 513 | 227 | ||||
Additions | 413 | 512 | ||||
Amount paid to third parties and others | 1,466 | 1,549 | ||||
Acquisitions through business combinations | 32 | 36 | ||||
Transferred from construction in progress | 296 | 155 | ||||
Disposals | (6) | |||||
Amortization for the year | (328) | (315) | ||||
Ending balance | 1,979 | 1,776 | [1] | |||
Increase (decrease) due to changes in accounting policy required by IFRSs [member] | ||||||
Disclosure of other non-current assets [line items] | ||||||
Beginning balance | 1,566 | 1,566 | ||||
Impact on initial application of IFRS 16 (Note 2(b)) | (210) | |||||
Ending balance | 1,566 | |||||
Previously stated [member] | ||||||
Disclosure of other non-current assets [line items] | ||||||
Beginning balance | 1,776 | 1,776 | ||||
Ending balance | 1,776 | |||||
Prepayment for exclusive use right of an airport terminal [member] | ||||||
Disclosure of other non-current assets [line items] | ||||||
Beginning balance | 220 | |||||
Additions | 0 | 0 | ||||
Acquisitions through business combinations | 0 | 0 | ||||
Transferred from construction in progress | 0 | 0 | ||||
Disposals | 0 | |||||
Amortization for the year | 0 | (10) | ||||
Ending balance | 0 | |||||
Prepayment for exclusive use right of an airport terminal [member] | Increase (decrease) due to changes in accounting policy required by IFRSs [member] | ||||||
Disclosure of other non-current assets [line items] | ||||||
Beginning balance | 0 | 0 | ||||
Impact on initial application of IFRS 16 (Note 2(b)) | (210) | |||||
Ending balance | 0 | |||||
Prepayment for exclusive use right of an airport terminal [member] | Previously stated [member] | ||||||
Disclosure of other non-current assets [line items] | ||||||
Beginning balance | 210 | 210 | ||||
Ending balance | 210 | |||||
Software [member] | ||||||
Disclosure of other non-current assets [line items] | ||||||
Beginning balance | 372 | 372 | 316 | |||
Additions | 75 | 105 | ||||
Acquisitions through business combinations | 0 | 0 | ||||
Transferred from construction in progress | 183 | 69 | ||||
Disposals | 0 | |||||
Amortization for the year | (148) | (118) | ||||
Ending balance | 482 | 372 | ||||
Software [member] | Increase (decrease) due to changes in accounting policy required by IFRSs [member] | ||||||
Disclosure of other non-current assets [line items] | ||||||
Impact on initial application of IFRS 16 (Note 2(b)) | 0 | |||||
Software [member] | Previously stated [member] | ||||||
Disclosure of other non-current assets [line items] | ||||||
Beginning balance | 372 | 372 | ||||
Ending balance | 372 | |||||
Leasehold improvements [member] | ||||||
Disclosure of other non-current assets [line items] | ||||||
Beginning balance | 181 | |||||
Additions | 0 | 0 | ||||
Acquisitions through business combinations | 9 | 36 | ||||
Transferred from construction in progress | 113 | 86 | ||||
Disposals | 0 | |||||
Amortization for the year | (113) | (61) | ||||
Ending balance | 251 | |||||
Leasehold improvements [member] | Increase (decrease) due to changes in accounting policy required by IFRSs [member] | ||||||
Disclosure of other non-current assets [line items] | ||||||
Beginning balance | 242 | 242 | ||||
Impact on initial application of IFRS 16 (Note 2(b)) | 0 | |||||
Ending balance | 242 | |||||
Leasehold improvements [member] | Previously stated [member] | ||||||
Disclosure of other non-current assets [line items] | ||||||
Beginning balance | 242 | 242 | ||||
Ending balance | 242 | |||||
Others [member] | ||||||
Disclosure of other non-current assets [line items] | ||||||
Beginning balance | 677 | |||||
Additions | 338 | 407 | ||||
Acquisitions through business combinations | 23 | 0 | ||||
Transferred from construction in progress | 0 | 0 | ||||
Disposals | (6) | |||||
Amortization for the year | (67) | (126) | ||||
Ending balance | 1,246 | |||||
Others [member] | Increase (decrease) due to changes in accounting policy required by IFRSs [member] | ||||||
Disclosure of other non-current assets [line items] | ||||||
Beginning balance | 952 | 952 | ||||
Impact on initial application of IFRS 16 (Note 2(b)) | 0 | |||||
Ending balance | 952 | |||||
Others [member] | Previously stated [member] | ||||||
Disclosure of other non-current assets [line items] | ||||||
Beginning balance | ¥ 952 | ¥ 952 | ||||
Ending balance | ¥ 952 | |||||
[1] | The Group has initially applied IFRS 16 at January 1, 2019 using the modified retrospective approach. Under this approach, comparative information is not restated. See Note 2(b). |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of inventories [line items] | |||
Inventories | ¥ 1,893 | ¥ 1,699 | [1] |
Gross carrying amount [member] | |||
Disclosure of inventories [line items] | |||
Consumable spare parts and maintenance materials | 1,683 | 1,688 | |
Other supplies | 264 | 232 | |
Inventories | 1,947 | 1,920 | |
Accumulated impairment provision [member] | |||
Disclosure of inventories [line items] | |||
Inventories | ¥ (54) | ¥ (221) | |
[1] | The Group has initially applied IFRS 16 at January 1, 2019 using the modified retrospective approach. Under this approach, comparative information is not restated. See Note 2(b). |
Inventories - Impairment of Inv
Inventories - Impairment of Inventory (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Provision of inventories [Abstract] | ||
Beginning balance | ¥ 221 | ¥ 226 |
Provision for inventories | 20 | 12 |
Provision written off upon disposal | (187) | (17) |
Ending balance | ¥ 54 | ¥ 221 |
Trade Receivables - Summary of
Trade Receivables - Summary of Trade Receivables (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of financial assets [line items] | |||
Trade receivables | ¥ 3,152 | ¥ 2,901 | [1] |
Gross carrying amount [member] | |||
Disclosure of financial assets [line items] | |||
Trade receivables | 3,188 | 2,937 | |
Loss allowance [member] | |||
Disclosure of financial assets [line items] | |||
Trade receivables | ¥ (36) | ¥ (36) | |
[1] | The Group has initially applied IFRS 16 at January 1, 2019 using the modified retrospective approach. Under this approach, comparative information is not restated. See Note 2(b). |
Trade Receivables - Additional
Trade Receivables - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
Bottom of range [member] | |
Disclosure of financial assets [line items] | |
Credit terms granted to sales agents and other customers | one month |
Top of range [member] | |
Disclosure of financial assets [line items] | |
Credit terms granted to sales agents and other customers | three month |
Trade Receivables - Ageing Anal
Trade Receivables - Ageing Analysis of Trade Receivables Based on Transaction Date (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of financial assets [line items] | |||
Trade receivables | ¥ 3,152 | ¥ 2,901 | [1] |
Gross carrying amount [member] | |||
Disclosure of financial assets [line items] | |||
Trade receivables | 3,188 | 2,937 | |
Gross carrying amount [member] | Within 1 month [member] | |||
Disclosure of financial assets [line items] | |||
Trade receivables | 2,308 | 2,325 | |
Gross carrying amount [member] | More than 1 month but less than 3 months [member] | |||
Disclosure of financial assets [line items] | |||
Trade receivables | 555 | 492 | |
Gross carrying amount [member] | More than 3 month but less than 1 year [member] | |||
Disclosure of financial assets [line items] | |||
Trade receivables | 297 | 90 | |
Gross carrying amount [member] | More than 1 year [member] | |||
Disclosure of financial assets [line items] | |||
Trade receivables | 28 | 30 | |
Loss allowance [member] | |||
Disclosure of financial assets [line items] | |||
Trade receivables | ¥ (36) | ¥ (36) | |
[1] | The Group has initially applied IFRS 16 at January 1, 2019 using the modified retrospective approach. Under this approach, comparative information is not restated. See Note 2(b). |
Trade Receivables - Trade Recei
Trade Receivables - Trade Receivables by Currencies (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of financial assets [line items] | |||
Trade receivables | ¥ 3,152 | ¥ 2,901 | [1] |
Gross carrying amount [member] | |||
Disclosure of financial assets [line items] | |||
Trade receivables | 3,188 | 2,937 | |
Gross carrying amount [member] | RMB [member] | |||
Disclosure of financial assets [line items] | |||
Trade receivables | 2,686 | 2,430 | |
Gross carrying amount [member] | USD [member] | |||
Disclosure of financial assets [line items] | |||
Trade receivables | 151 | 179 | |
Gross carrying amount [member] | EURO [member] | |||
Disclosure of financial assets [line items] | |||
Trade receivables | 65 | 104 | |
Gross carrying amount [member] | AUD [Member] | |||
Disclosure of financial assets [line items] | |||
Trade receivables | 33 | 6 | |
Gross carrying amount [member] | TWD [Member] | |||
Disclosure of financial assets [line items] | |||
Trade receivables | 22 | 27 | |
Gross carrying amount [member] | GBP [Member] | |||
Disclosure of financial assets [line items] | |||
Trade receivables | 18 | 13 | |
Gross carrying amount [member] | Others [member] | |||
Disclosure of financial assets [line items] | |||
Trade receivables | ¥ 213 | ¥ 178 | |
[1] | The Group has initially applied IFRS 16 at January 1, 2019 using the modified retrospective approach. Under this approach, comparative information is not restated. See Note 2(b). |
Other Receivables - Summary of
Other Receivables - Summary of Other Receivables (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of financial assets [line items] | ||
Other receivables | ¥ 7,865 | ¥ 8,020 |
Other receivables | 7,860 | 8,015 |
Gross carrying amount [member] | ||
Disclosure of financial assets [line items] | ||
VAT recoverable | 5,214 | 5,342 |
Government grants receivables | 1,275 | 982 |
Rebate receivables on aircraft acquisitions | 616 | 686 |
Other deposits | 203 | 426 |
Others | 557 | 584 |
Allowance for doubtful accounts current [member] | ||
Disclosure of financial assets [line items] | ||
Other receivables | ¥ (5) | ¥ (5) |
Other Receivables - Additional
Other Receivables - Additional Information (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of financial assets [abstract] | ||
Weighted average annualized interest rate of term deposit | 2.54% | 2.26% |
Term deposits | ¥ 43 | ¥ 264 |
Cash and Cash Equivalents - Sum
Cash and Cash Equivalents - Summary of Cash and Cash Equivalents (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | [1] | Dec. 31, 2016 | [1] | |
Disclosure of financial assets [abstract] | |||||||
Deposits in banks and other financial institutions | ¥ 1 | ¥ 19 | |||||
Cash at bank and other financial institutions and on hand | 1,848 | 6,909 | |||||
Cash and cash equivalents | ¥ 1,849 | ¥ 6,928 | [1] | ¥ 6,826 | ¥ 4,152 | ||
[1] | The Group has initially applied IFRS 16 at January 1, 2019 using the modified retrospective approach. Under this approach, comparative information is not restated. See Note 2(b). |
Cash and Cash Equivalents - Cas
Cash and Cash Equivalents - Cash and Cash Equivalents by Currencies (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | [1] | Dec. 31, 2016 | [1] | |
Disclosure of financial assets [line items] | |||||||
Cash and cash equivalents | ¥ 1,849 | ¥ 6,928 | [1] | ¥ 6,826 | ¥ 4,152 | ||
RMB [member] | |||||||
Disclosure of financial assets [line items] | |||||||
Cash and cash equivalents | 1,231 | 6,281 | |||||
USD [member] | |||||||
Disclosure of financial assets [line items] | |||||||
Cash and cash equivalents | 395 | 267 | |||||
EURO [member] | |||||||
Disclosure of financial assets [line items] | |||||||
Cash and cash equivalents | 34 | 53 | |||||
JPY [member] | |||||||
Disclosure of financial assets [line items] | |||||||
Cash and cash equivalents | 17 | 22 | |||||
Hong Kong Dollars [member] | |||||||
Disclosure of financial assets [line items] | |||||||
Cash and cash equivalents | 13 | 22 | |||||
Others [member] | |||||||
Disclosure of financial assets [line items] | |||||||
Cash and cash equivalents | 100 | 145 | |||||
AUD [Member] | |||||||
Disclosure of financial assets [line items] | |||||||
Cash and cash equivalents | ¥ 59 | ¥ 138 | |||||
[1] | The Group has initially applied IFRS 16 at January 1, 2019 using the modified retrospective approach. Under this approach, comparative information is not restated. See Note 2(b). |
Cash and Cash Equivalents - Rec
Cash and Cash Equivalents - Reconciliation of Profit before Income Tax to Cash Generated from Operating Activities (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Disclosure of financial assets [abstract] | |||||
Profit before income tax | ¥ 4,055 | ¥ 4,364 | [1],[2] | ¥ 8,874 | [1],[2],[3] |
Adjustments for: | |||||
Depreciation and amortization charges | 24,292 | 13,969 | [2] | 12,963 | [2],[3] |
Other amortization | 328 | 339 | [2] | 199 | [2],[3] |
Impairment losses on property, plant, equipment | 18 | 0 | [1],[2] | 324 | [1],[2],[3] |
Share of associates' results | 178 | (263) | [1] | (431) | [1],[3] |
Share of joint ventures' results | (365) | (200) | [1] | (99) | [1],[3] |
Gain on disposal of property, plant and equipment and construction in progress | (140) | (602) | [2] | (989) | [2],[3] |
Changes in fair value of financial instruments | (265) | (12) | [2] | 64 | [2],[3] |
Remeasurement of the originally held equity interests in a joint venture | (13) | 0 | [1] | (109) | [1],[3] |
Interest income | (74) | (125) | [1] | (89) | [1],[3] |
Interest expense | 5,845 | 3,202 | [2] | 2,747 | [2],[3] |
Dividends received from other non-current financial assets and other equity instrument investments | (23) | (20) | [2] | 0 | [2],[3] |
Dividend income from investments | 0 | 0 | [2] | (18) | [2],[3] |
Exchange losses / (gains), net | 1,268 | 2,820 | [2] | (642) | [2],[3] |
Changes in working capital | |||||
Increase in inventories | (179) | (77) | [2] | (34) | [2],[3] |
(Decrease) /increase in contract liabilities and other non-current liabilities | (337) | 450 | [2] | 0 | [2],[3] |
Increase / (decrease) in sales in advance of carriage | 1,709 | 1,441 | [2] | (567) | [2],[3] |
Increase / (decrease) in deferred benefits and gains | 73 | (147) | [2] | 362 | [2],[3] |
Decrease / (increase) in operating receivables | 1,178 | (5,322) | [2] | (281) | [2],[3] |
Increase in operating payables | 2,180 | 1,357 | [2] | 1,204 | [2],[3] |
Cash generated from operating activities | ¥ 39,728 | ¥ 21,174 | [1] | ¥ 23,478 | [1] |
[1] | The Group has initially applied IFRS 16 at January 1, 2019 using the modified retrospective approach. Under this approach, comparative information is not restated. See Note 2(b). | ||||
[2] | The Group has initially applied IFRS 16 using the modified retrospective approach and adjusted the opening balances at January 1, 2019 to recognize right-of-use assets and lease liabilities relating to leases which were previously classified as operating leases under IAS 17. In the comparative periods in 2018 and 2017, cash payments under operating leases made by the Group as a lessee of RMB9,920 million and RMB8,996 million, respectively, were included in operating cash outflows in the consolidated cash flow statements. Under IFRS 16, except for short-term lease payments and payments for leases of low value assets not included in the measurement of lease liabilities, all other rentals paid on leases are now split into capital element and interest element and classified as financing cash outflows and operating cash outflows, respectively. Under the modified retrospective approach, the comparative information is not restated. Further details on the impact of the transition to IFRS 16 are set out in Note 2(b). | ||||
[3] | The Group has initially applied IFRS 15 and IFRS 9 at January 1, 2018. Under the transition methods chosen, comparative information is not restated. See Note 2(b). |
Cash and Cash Equivalents - R_2
Cash and Cash Equivalents - Reconciliation of Profit before Income Tax to Cash Generated from Operating Activities (Parenthetical) (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of financial assets [abstract] | ||
Operating Lease Payments | ¥ 9,920 | ¥ 8,996 |
Cash and Cash Equivalents - S_2
Cash and Cash Equivalents - Summary of Reconciliation of Liabilities Arising from Financing Activities (Detail) ¥ in Millions | 12 Months Ended | |||||
Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017CNY (¥) | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||||||
Beginning balance | ¥ 126,607 | ¥ 116,229 | ||||
Impact on initial application of IFRS 16 | (3,462) | |||||
Changes from financing cash flows: | ||||||
Proceeds from bank borrowings | 33,985 | 34,385 | [1] | ¥ 42,854 | [1] | |
Proceeds from issuance of ultra-short-term financing bills | 43,489 | 5,500 | ||||
Proceeds from corporate bonds | 7,497 | 2,000 | ||||
Repayment of bank borrowings | (50,374) | (34,260) | [1] | (18,311) | [1] | |
Repayment of ultra-short-term financing bills | (25,000) | (1,500) | ||||
Repayment of corporate bonds | (12,951) | (345) | ||||
Capital element of lease rentals paid | (17,784) | (10,433) | ||||
Total changes from financing cash flows | (21,138) | (4,653) | ||||
Exchange adjustments | 1,238 | 1,790 | ||||
Changes in fair value | (159) | (49) | ||||
Additions of obligations under finance leases | 13,290 | |||||
Increase in lease liabilities from entering into new leases during the year | 30,351 | |||||
Amortization amount of bond | 9 | |||||
Total other changes | 30,360 | 13,290 | ||||
Ending Balance | 185,064 | 126,607 | 116,229 | |||
IFRS 16 [Member] | ||||||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||||||
Impact on initial application of IFRS 16 | 48,156 | |||||
Bank loans and other borrowings [member] | ||||||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||||||
Beginning balance | 54,417 | 48,287 | ||||
Changes from financing cash flows: | ||||||
Proceeds from bank borrowings | 33,985 | 34,385 | ||||
Proceeds from issuance of ultra-short-term financing bills | 43,489 | 5,500 | ||||
Proceeds from corporate bonds | 7,497 | 2,000 | ||||
Repayment of bank borrowings | (50,374) | (34,260) | ||||
Repayment of ultra-short-term financing bills | (25,000) | (1,500) | ||||
Repayment of corporate bonds | (12,951) | (345) | ||||
Total changes from financing cash flows | (3,354) | 5,780 | ||||
Exchange adjustments | 108 | 350 | ||||
Amortization amount of bond | 9 | |||||
Total other changes | 9 | |||||
Ending Balance | 51,180 | 54,417 | 48,287 | |||
Bank loans and other borrowings [member] | Previously stated [member] | ||||||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||||||
Beginning balance | $ | $ 54,417 | |||||
Changes from financing cash flows: | ||||||
Ending Balance | $ | ||||||
Bank loans and other borrowings [member] | As Restated [Member] | ||||||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||||||
Beginning balance | $ | ||||||
Changes from financing cash flows: | ||||||
Ending Balance | $ | 54,417 | |||||
Obligations under finance leases [member] | ||||||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||||||
Beginning balance | 72,221 | 67,924 | ||||
Changes from financing cash flows: | ||||||
Capital element of lease rentals paid | (10,433) | |||||
Total changes from financing cash flows | (10,433) | |||||
Exchange adjustments | 1,440 | |||||
Additions of obligations under finance leases | 13,290 | |||||
Total other changes | 13,290 | |||||
Ending Balance | 72,221 | 67,924 | ||||
Obligations under finance leases [member] | Previously stated [member] | ||||||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||||||
Beginning balance | $ | 72,221 | |||||
Changes from financing cash flows: | ||||||
Ending Balance | $ | ||||||
Obligations under finance leases [member] | IFRS 16 [Member] | ||||||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||||||
Impact on initial application of IFRS 16 | (72,221) | |||||
Lease liabilities [member] | ||||||
Changes from financing cash flows: | ||||||
Capital element of lease rentals paid | (17,784) | |||||
Total changes from financing cash flows | (17,784) | |||||
Exchange adjustments | 1,130 | |||||
Increase in lease liabilities from entering into new leases during the year | 30,351 | |||||
Total other changes | 30,351 | |||||
Ending Balance | 134,074 | |||||
Lease liabilities [member] | As Restated [Member] | ||||||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||||||
Beginning balance | $ | ||||||
Changes from financing cash flows: | ||||||
Ending Balance | $ | 120,377 | |||||
Lease liabilities [member] | IFRS 16 [Member] | ||||||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||||||
Impact on initial application of IFRS 16 | 120,377 | |||||
Interest rate swaps held to hedge borrowings (assets) [member] | ||||||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||||||
Beginning balance | (75) | (46) | ||||
Changes from financing cash flows: | ||||||
Changes in fair value | 72 | (29) | ||||
Ending Balance | (3) | (75) | (46) | |||
Interest rate swaps held to hedge borrowings (assets) [member] | Previously stated [member] | ||||||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||||||
Beginning balance | $ | (75) | |||||
Changes from financing cash flows: | ||||||
Ending Balance | $ | ||||||
Interest rate swaps held to hedge borrowings (assets) [member] | As Restated [Member] | ||||||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||||||
Beginning balance | $ | ||||||
Changes from financing cash flows: | ||||||
Ending Balance | $ | (75) | |||||
Cross currency swaps (liabilities) | ||||||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||||||
Beginning balance | 44 | 64 | ||||
Changes from financing cash flows: | ||||||
Changes in fair value | (44) | (20) | ||||
Ending Balance | ¥ 44 | ¥ 64 | ||||
Cross currency swaps (liabilities) | Previously stated [member] | ||||||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||||||
Beginning balance | $ | 44 | |||||
Changes from financing cash flows: | ||||||
Ending Balance | $ | ||||||
Cross currency swaps (liabilities) | As Restated [Member] | ||||||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||||||
Beginning balance | $ | ||||||
Changes from financing cash flows: | ||||||
Ending Balance | $ | 44 | |||||
Cross currency swaps (assets) | ||||||
Changes from financing cash flows: | ||||||
Changes in fair value | (187) | |||||
Ending Balance | ¥ (187) | |||||
Cross currency swaps (assets) | Previously stated [member] | ||||||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||||||
Beginning balance | $ | 126,607 | |||||
Changes from financing cash flows: | ||||||
Ending Balance | $ | ||||||
Cross currency swaps (assets) | As Restated [Member] | ||||||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||||||
Beginning balance | $ | ||||||
Changes from financing cash flows: | ||||||
Ending Balance | $ | $ 174,763 | |||||
[1] | The Group has initially applied IFRS 16 at January 1, 2019 using the modified retrospective approach. Under this approach, comparative information is not restated. See Note 2(b). |
Cash and cash equivalents - S_3
Cash and cash equivalents - Summary Of Cash Outflow Related To Leases (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Detailed Information About Cash Outflow Related To Leases [Abstract] | |||
Within operating cash flows | ¥ (7,457) | ¥ (12,316) | ¥ (11,022) |
Within investing cash flows | (224) | (113) | |
Within financing cash flows | (17,784) | (10,433) | (9,835) |
Total | ¥ (25,465) | ¥ (22,862) | ¥ (20,857) |
Cash and cash equivalents - S_4
Cash and cash equivalents - Summary Of Change In Classification Of Cash Flows Of Certain Rentals Paid On Leases (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of change in classification of cash flows of certain rentals paid on leases [Abstract] | |||
Lease rentals paid | ¥ (25,241) | ¥ (22,749) | ¥ (20,857) |
Addition of land use rights | (224) | (113) | |
Total | ¥ (25,465) | ¥ (22,862) | ¥ (20,857) |
Asset Held For Sale - Summary o
Asset Held For Sale - Summary of Assets Held for Sale (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Assets held for sale [line items] | ||
Assets held for sale | ¥ 224 | |
Owned aircraft [member] | ||
Assets held for sale [line items] | ||
Assets held for sale | ¥ 224 |
Asset Held For Sale - Additiona
Asset Held For Sale - Additional Information (Detail) ¥ in Millions | 12 Months Ended |
Dec. 31, 2018CNY (¥) | |
Non-current assets or disposal groups classified as held for sale or as held for distribution to owners [abstract] | |
Carrying amount of assets held for sale | ¥ 224 |
Fair value less cost to sell | ¥ 238 |
Borrowings - Summary of Borrowi
Borrowings - Summary of Borrowings (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Non-current | |||
– secured (Note (i)) | ¥ 10 | ¥ 511 | |
- unsecured | 2,381 | 8,911 | |
Long-term bank borrowings | 2,391 | 9,422 | |
– unsecured (Note (ii)) | 8,646 | 4,655 | |
– unsecured (Note (iii)) | 2,600 | 1,599 | |
Non-current borrowings | 13,637 | 15,676 | [1] |
Current | |||
– secured (Note (i)) | 90 | 94 | |
- unsecured | 51 | 808 | |
Short-term borrowings - unsecured | 12,250 | 20,739 | |
Ultra short-term financing bills - unsecured | 22,497 | 4,000 | |
Current borrowings except current portion of corporate bond | 34,888 | 25,641 | |
Current portion of corporate bond and medium-term notes | |||
– unsecured (Notes (ii)&(iii)) | 2,655 | 13,100 | |
Current borrowings | 37,543 | 38,741 | [1] |
Borrowings | |||
Total borrowings | 51,180 | 54,417 | [1] |
Within 1 year [member] | |||
Borrowings | |||
Total borrowings | 37,543 | 38,741 | |
After 1 year but within 2 years [member] | |||
Borrowings | |||
Total borrowings | 3,773 | 7,757 | |
After 2 years but within 5 years [member] | |||
Borrowings | |||
Total borrowings | 8,389 | 6,004 | |
After 5 years [member] | |||
Borrowings | |||
Total borrowings | ¥ 1,475 | ¥ 1,915 | |
[1] | The Group has initially applied IFRS 16 at January 1, 2019 using the modified retrospective approach. Under this approach, comparative information is not restated. See Note 2(b). |
Borrowings - Summary of Borro_2
Borrowings - Summary of Borrowings (Parenthetical) (Detail) - CNY (¥) ¥ in Millions | Nov. 20, 2019 | May 16, 2019 | Feb. 21, 2019 | Nov. 26, 2018 | Nov. 21, 2016 | Oct. 20, 2016 | Aug. 15, 2016 | May 25, 2016 | Mar. 03, 2016 | Nov. 20, 2015 | Dec. 31, 2019 | Dec. 31, 2018 | Oct. 18, 2019 |
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Redemption of debt | ¥ 12,951 | ¥ 345 | |||||||||||
Owned and finance leased aircraft [member] | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Carrying amount of assets used as security for bank borrowings | 339 | 373 | |||||||||||
Investment properties [member] | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Carrying amount of assets used as security for bank borrowings | 15 | 18 | |||||||||||
Secured bank borrowings [member] | Owned and finance leased aircraft [member] | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Bank borrowings used to secure assets | 10 | 390 | |||||||||||
Carrying amount of assets used as security for bank borrowings | 339 | 373 | |||||||||||
Secured bank borrowings [member] | Right-of-use assets and investment properties [member] | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Bank borrowings used to secure assets | 90 | 215 | |||||||||||
Secured bank borrowings [member] | Land use rights [member] | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Carrying amount of assets used as security for bank borrowings | 87 | 88 | |||||||||||
Secured bank borrowings [member] | Investment properties [member] | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Carrying amount of assets used as security for bank borrowings | 15 | 18 | |||||||||||
Corporate bond [member] | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Aggregate nominal value | ¥ 1,500 | ¥ 2,000 | ¥ 3,000 | ¥ 2,000 | ¥ 5,000 | ¥ 5,000 | ¥ 3,000 | ||||||
Borrowings interest rate | 3.58% | 3.72% | 3.45% | 3.92% | 3.12% | 2.97% | 3.63% | ||||||
Borrowings maturity period | three years | three years | three years | three years | Five years | Three years | Five years | ||||||
Redemption of debt | 5,000 | ¥ 345 | |||||||||||
Corporate bond [member] | Investment properties [member] | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Redemption of debt | ¥ 4,851 | ||||||||||||
Medium- term notes 1 [member] | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Aggregate nominal value | ¥ 1,800 | ¥ 1,600 | ¥ 1,300 | ¥ 1,000 | |||||||||
Borrowings interest rate | 3.38% | 3.11% | 2.97% | 3.20% | |||||||||
Borrowings maturity period | Three years | Five years | Three years |
Borrowings - Additional Informa
Borrowings - Additional Information (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | [1],[2] | ||
Disclosure of detailed information about borrowings [line items] | |||||
Net foreign exchange gain/(loss) | ¥ (1,477) | ¥ (1,853) | [1] | ¥ 1,801 | |
Southern Airlines Group Finance Co., Ltd [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Loan received from related party | ¥ 4,720 | ¥ 500 | |||
Short-term borrowings [member] | Weighted average [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Borrowings interest rate | 3.70% | 3.92% | |||
Short-term borrowings [member] | Southern Airlines Group Finance Co., Ltd [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Loan received from related party | ¥ 800 | ¥ 0 | |||
[1] | The Group has initially applied IFRS 16 at January 1, 2019 using the modified retrospective approach. Under this approach, comparative information is not restated. See Note 2(b). | ||||
[2] | The Group has initially applied IFRS 15 and IFRS 9 at January 1, 2018. Under the transition methods chosen, comparative information is not restated. See Note 2(b). |
Borrowings - Details of Borrowi
Borrowings - Details of Borrowings with Original Maturity over One Year (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about borrowings [line items] | |||
Borrowings with original maturity over one year | ¥ 16,433 | ¥ 29,678 | |
Less: loans due within one year classified as current liabilities | (2,796) | (14,002) | |
Borrowings | 13,637 | 15,676 | [1] |
Fixed interest rate at 3.92% per annum as at December 31, 2019 with maturities through 2022 [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings with original maturity over one year | 800 | 0 | |
Fixed interest rate at 4.41% per annum as at December 31, 2019 with maturities through 2034 [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings with original maturity over one year | 80 | 0 | |
RMB [member] | Floating interest rates 90%, 100% of benchmark interest rate (stipulated by PBOC) as at December 31, 2019, with maturities through 2033 [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings with original maturity over one year | 1,633 | 10,213 | |
RMB [member] | Fixed interest rate at 1.20% per annum as at December 31, 2019, with maturities through 2027 [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings with original maturity over one year | 19 | 19 | |
RMB [member] | Corporate bond - fixed bond rate at 2.97 %-3.92 % [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings with original maturity over one year | 11,301 | 14,655 | |
RMB [member] | Medium-term notes- fixed interest rate at 2.97%-3.38% [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings with original maturity over one year | 2,600 | 4,699 | |
USD [member] | Fixed interest rate at 3.32% per annum as at December 31, 2019, with maturities through 2020 [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings with original maturity over one year | ¥ 0 | ¥ 92 | |
[1] | The Group has initially applied IFRS 16 at January 1, 2019 using the modified retrospective approach. Under this approach, comparative information is not restated. See Note 2(b). |
Borrowings - Details of Borro_2
Borrowings - Details of Borrowings with Original Maturity over One Year (Parenthetical) (Detail) | Dec. 31, 2019 | Dec. 31, 2018 |
Floating interest rates 90%, 100% of benchmark interest rate (stipulated by PBOC) as at December 31, 2019, with maturities through 2033 [member] | RMB [member] | Bottom of range [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Percentage of benchmark interest rate | 90.00% | 90.00% |
Floating interest rates 90%, 100% of benchmark interest rate (stipulated by PBOC) as at December 31, 2019, with maturities through 2033 [member] | RMB [member] | Top of range [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Percentage of benchmark interest rate | 100.00% | 100.00% |
Fixed interest rate at 1.20% per annum as at December 31, 2019, with maturities through 2027 [member] | RMB [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings interest rate | 1.20% | 1.20% |
Corporate bond - fixed bond rate at 2.97 %-3.92 % [member] | RMB [member] | Bottom of range [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings interest rate | 2.97% | 2.97% |
Corporate bond - fixed bond rate at 2.97 %-3.92 % [member] | RMB [member] | Top of range [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings interest rate | 3.92% | 3.92% |
Medium-term notes- fixed interest rate at 2.97%-3.38% [member] | RMB [member] | Bottom of range [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings interest rate | 2.97% | 2.97% |
Medium-term notes- fixed interest rate at 2.97%-3.38% [member] | RMB [member] | Top of range [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings interest rate | 3.38% | 3.38% |
Fixed interest rate at 3.32% per annum as at December 31, 2019, with maturities through 2020 [member] | USD [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings interest rate | 3.32% | 3.32% |
Borrowings - Borrowings by Curr
Borrowings - Borrowings by Currencies (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | ¥ 51,180 | ¥ 54,417 | [1] |
RMB [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 46,823 | 47,607 | |
USD [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | ¥ 4,357 | ¥ 6,810 | |
[1] | The Group has initially applied IFRS 16 at January 1, 2019 using the modified retrospective approach. Under this approach, comparative information is not restated. See Note 2(b). |
Lease liabilities - Detailed In
Lease liabilities - Detailed Information About In Remaining Contractual Maturities Of The Group Lease Liabilities (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Statement [LineItems] | |||
Present value of the minimum lease payments | ¥ 134,074 | ¥ 120,377 | |
Total minimum lease payments | 157,081 | 140,958 | |
Less: total future interest expenses | (23,007) | (20,581) | |
Present value of lease liabilities | 134,074 | 120,377 | ¥ 72,221 |
Within 1 year [member] | |||
Statement [LineItems] | |||
Present value of the minimum lease payments | 19,998 | 16,921 | |
Total minimum lease payments | 25,404 | 21,507 | |
After 1 year but within 2 years [member] | |||
Statement [LineItems] | |||
Present value of the minimum lease payments | 19,249 | 16,018 | |
Total minimum lease payments | 23,860 | 20,033 | |
After 2 years but within 5 years [member] | |||
Statement [LineItems] | |||
Present value of the minimum lease payments | 54,155 | 50,709 | |
Total minimum lease payments | 63,003 | 59,111 | |
After 5 years [member] | |||
Statement [LineItems] | |||
Present value of the minimum lease payments | 40,672 | 36,729 | |
Total minimum lease payments | 44,814 | 40,307 | |
More than 1 year [member] | |||
Statement [LineItems] | |||
Present value of the minimum lease payments | 114,076 | 103,456 | |
Total minimum lease payments | ¥ 131,677 | ¥ 119,451 |
Lease liabilities - Summary of
Lease liabilities - Summary of lease liabilities demonimated by currencies (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Disclosure of lease liabilities demonimated by currencies [line items] | |||
Lease liabilities | ¥ 134,074 | ¥ 120,377 | ¥ 72,221 |
Fixed interest rates [member] | |||
Disclosure of lease liabilities demonimated by currencies [line items] | |||
Lease liabilities | ¥ 57,638 | ¥ 9,727 | |
Fixed interest rates [member] | Bottom of range [member] | |||
Disclosure of lease liabilities demonimated by currencies [line items] | |||
Borrowings interest rate | 1.75% | 1.75% | |
Fixed interest rates [member] | Top of range [member] | |||
Disclosure of lease liabilities demonimated by currencies [line items] | |||
Borrowings interest rate | 5.03% | 5.03% | |
Floating interest rates [member] | |||
Disclosure of lease liabilities demonimated by currencies [line items] | |||
Lease liabilities | ¥ 76,436 | ¥ 62,494 | |
Floating interest rates [member] | Bottom of range [member] | |||
Disclosure of lease liabilities demonimated by currencies [line items] | |||
Borrowings interest rate | 0.00% | 0.00% | |
Floating interest rates [member] | Top of range [member] | |||
Disclosure of lease liabilities demonimated by currencies [line items] | |||
Borrowings interest rate | 5.22% | 5.80% | |
USD [member] | |||
Disclosure of lease liabilities demonimated by currencies [line items] | |||
Lease liabilities | ¥ 65,903 | ¥ 26,867 | |
USD [member] | Fixed interest rates [member] | |||
Disclosure of lease liabilities demonimated by currencies [line items] | |||
Lease liabilities | 50,568 | 8,630 | |
USD [member] | Floating interest rates [member] | |||
Disclosure of lease liabilities demonimated by currencies [line items] | |||
Lease liabilities | 15,335 | 18,237 | |
JPY [member] | |||
Disclosure of lease liabilities demonimated by currencies [line items] | |||
Lease liabilities | 1,282 | 1,457 | |
JPY [member] | Fixed interest rates [member] | |||
Disclosure of lease liabilities demonimated by currencies [line items] | |||
Lease liabilities | 10 | 0 | |
JPY [member] | Floating interest rates [member] | |||
Disclosure of lease liabilities demonimated by currencies [line items] | |||
Lease liabilities | 1,272 | 1,457 | |
RMB [member] | |||
Disclosure of lease liabilities demonimated by currencies [line items] | |||
Lease liabilities | 63,123 | 39,726 | |
RMB [member] | Fixed interest rates [member] | |||
Disclosure of lease liabilities demonimated by currencies [line items] | |||
Lease liabilities | 7,023 | 1,097 | |
RMB [member] | Floating interest rates [member] | |||
Disclosure of lease liabilities demonimated by currencies [line items] | |||
Lease liabilities | 56,100 | 38,629 | |
EURO [member] | |||
Disclosure of lease liabilities demonimated by currencies [line items] | |||
Lease liabilities | 3,550 | 3,927 | |
EURO [member] | Fixed interest rates [member] | |||
Disclosure of lease liabilities demonimated by currencies [line items] | |||
Lease liabilities | 15 | 0 | |
EURO [member] | Floating interest rates [member] | |||
Disclosure of lease liabilities demonimated by currencies [line items] | |||
Lease liabilities | 3,535 | 3,927 | |
Other currencies [member] | |||
Disclosure of lease liabilities demonimated by currencies [line items] | |||
Lease liabilities | 216 | 244 | |
Other currencies [member] | Fixed interest rates [member] | |||
Disclosure of lease liabilities demonimated by currencies [line items] | |||
Lease liabilities | 22 | 0 | |
Other currencies [member] | Floating interest rates [member] | |||
Disclosure of lease liabilities demonimated by currencies [line items] | |||
Lease liabilities | ¥ 194 | ¥ 244 |
Obligations under Finance Lea_3
Obligations under Finance Leases - Additional Information (Detail) ¥ in Millions | Jan. 01, 2019CNY (¥) |
Increase (decrease) due to application of IFRS 16 [member] | |
Disclosure of finance lease and operating lease by lessee [line items] | |
Obligations Under Finance Lease Liabilities | ¥ 72,221 |
Obligations under Finance Lea_4
Obligations under Finance Leases - Future Payments under Finance Leases (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | ||
Disclosure of finance lease and operating lease by lessee [line items] | ||||
Present value of the minimum lease payments | [1] | ¥ 72,221 | ||
Current finance lease liabilities | ¥ 0 | (9,555) | [1] | |
Non-current finance lease liabilities | ¥ 0 | 62,666 | [1] | |
Total minimum lease payments | 82,765 | |||
Interest | 10,544 | |||
Within 1 year [member] | ||||
Disclosure of finance lease and operating lease by lessee [line items] | ||||
Present value of the minimum lease payments | 9,555 | |||
Total minimum lease payments | 12,062 | |||
Interest | 2,507 | |||
After 1 year but within 2 years [member] | ||||
Disclosure of finance lease and operating lease by lessee [line items] | ||||
Present value of the minimum lease payments | 9,572 | |||
Total minimum lease payments | 11,738 | |||
Interest | 2,166 | |||
After 2 years but within 5 years [member] | ||||
Disclosure of finance lease and operating lease by lessee [line items] | ||||
Present value of the minimum lease payments | 32,285 | |||
Total minimum lease payments | 36,765 | |||
Interest | 4,480 | |||
After 5 years [member] | ||||
Disclosure of finance lease and operating lease by lessee [line items] | ||||
Present value of the minimum lease payments | 20,809 | |||
Total minimum lease payments | 22,200 | |||
Interest | ¥ 1,391 | |||
[1] | The Group has initially applied IFRS 16 at January 1, 2019 using the modified retrospective approach. Under this approach, comparative information is not restated. See Note 2(b). |
Trade Payables - Ageing Analysi
Trade Payables - Ageing Analysis of Trade Payables Based on Transaction Date (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of financial liabilities [line items] | |||
Trade payables | ¥ 2,317 | ¥ 2,309 | [1] |
Within 1 month [member] | |||
Disclosure of financial liabilities [line items] | |||
Trade payables | 563 | 406 | |
More than 1 month but less than 3 months [member] | |||
Disclosure of financial liabilities [line items] | |||
Trade payables | 506 | 829 | |
More than 3 months but less than 6 months [member] | |||
Disclosure of financial liabilities [line items] | |||
Trade payables | 450 | 476 | |
More than 6 months but less than 1 year [member] | |||
Disclosure of financial liabilities [line items] | |||
Trade payables | 568 | 423 | |
More than 1 year [member] | |||
Disclosure of financial liabilities [line items] | |||
Trade payables | ¥ 230 | ¥ 175 | |
[1] | The Group has initially applied IFRS 16 at January 1, 2019 using the modified retrospective approach. Under this approach, comparative information is not restated. See Note 2(b). |
Trade Payables - Trade Payables
Trade Payables - Trade Payables by Currencies (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of financial liabilities [line items] | |||
Trade payables | ¥ 2,317 | ¥ 2,309 | [1] |
RMB [member] | |||
Disclosure of financial liabilities [line items] | |||
Trade payables | 1,845 | 1,910 | |
USD [member] | |||
Disclosure of financial liabilities [line items] | |||
Trade payables | 423 | 376 | |
Others [member] | |||
Disclosure of financial liabilities [line items] | |||
Trade payables | ¥ 49 | ¥ 23 | |
[1] | The Group has initially applied IFRS 16 at January 1, 2019 using the modified retrospective approach. Under this approach, comparative information is not restated. See Note 2(b). |
Contract Liabilities - Summary
Contract Liabilities - Summary of Contract Liabilities (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of contract liabilities [Abstract] | |||
Unredeemed credits under the frequent flyer award programs | ¥ 1,568 | ¥ 1,693 | |
Others | 42 | 0 | |
Total | ¥ 1,610 | ¥ 1,693 | [1] |
[1] | The Group has initially applied IFRS 16 at January 1, 2019 using the modified retrospective approach. Under this approach, comparative information is not restated. See Note 2(b). |
Contract Liabilities - Summar_2
Contract Liabilities - Summary of Movements in Current Liabilities (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of contract liabilities [line items] | ||
Contract liabilities, Beginning balance | ¥ 3,711 | ¥ 3,261 |
-Curent, Beginning balance | 1,693 | 1,461 |
-Non-Curent, Beginning balance | 2,018 | 1,800 |
Addition as a result of increase of the unredeemed credits under the frequent flyer award programs | 1,979 | 2,161 |
Reduction as a result of revenue recognized during the year | (2,359) | (1,711) |
-Recognized as revenue from opening balance of contract liabilities | (1,948) | (1,461) |
-Recognized as revenue from current year addition of contract liabilities | (411) | (250) |
Contract liabilities, Ending balance | 3,331 | 3,711 |
-Curent, Ending balance | 1,568 | 1,693 |
-Non-Curent, Ending balance | ¥ 1,763 | ¥ 2,018 |
Contract Liabilities - Addition
Contract Liabilities - Additional Information (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of contract liabilities [Abstract] | ||
Aggregated amount of the transaction price allocated to the remaining performance obligation | ¥ 3,331 | ¥ 3,711 |
Sales in Advance of Carriage -
Sales in Advance of Carriage - Additional Information (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of sales in advance of carriage [abstract] | ||
Revenue recognised as sales in advance of carriage | ¥ 8,398 | ¥ 7,279 |
Other Non-current Liabilities -
Other Non-current Liabilities - Summary of Other Non-current Liabilities (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of other non-current liabilities [abstract] | ||||
Unredeemed credits under the frequent flyer award programs | ¥ 1,763 | ¥ 2,018 | ¥ 1,800 | |
Others | 19 | 18 | ||
Other non-current liabilities | ¥ 1,782 | ¥ 2,036 | [1] | |
[1] | The Group has initially applied IFRS 16 at January 1, 2019 using the modified retrospective approach. Under this approach, comparative information is not restated. See Note 2(b). |
Balances with Related Compani_3
Balances with Related Companies - Summary of Amounts Due from/to Related Companies (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of transactions between related parties [line items] | |||
Amounts due from related companies, current | ¥ 73 | ¥ 90 | [1] |
Amounts due to related companies | 170 | 127 | [1] |
Amounts paid to related companies | 513 | 227 | |
CSAH and its affiliates [member] | |||
Disclosure of transactions between related parties [line items] | |||
Amounts due from related companies, current | 18 | 51 | |
Amounts due to related companies | 116 | 49 | |
Amounts paid to related companies | 160 | 80 | |
Associates [member] | |||
Disclosure of transactions between related parties [line items] | |||
Amounts due from related companies, current | 35 | 22 | |
Amounts due to related companies | 1 | 12 | |
Amounts paid to related companies | 353 | 147 | |
Joint ventures [member] | |||
Disclosure of transactions between related parties [line items] | |||
Amounts due from related companies, current | 20 | 17 | |
Amounts due to related companies | 53 | 63 | |
Other related companies [member] | |||
Disclosure of transactions between related parties [line items] | |||
Amounts due to related companies | ¥ 0 | ¥ 3 | |
[1] | The Group has initially applied IFRS 16 at January 1, 2019 using the modified retrospective approach. Under this approach, comparative information is not restated. See Note 2(b). |
Accrued Expenses - Summary of A
Accrued Expenses - Summary of Accrued Expenses (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Subclassifications of assets, liabilities and equities [abstract] | |||
Repairs and maintenance | ¥ 4,312 | ¥ 4,468 | |
Jet fuel costs | 1,846 | 1,900 | |
Salaries and welfare | 3,974 | 3,212 | |
Landing and navigation fees | 2,612 | 2,492 | |
Computer reservation services | 461 | 585 | |
Provision for major overhauls | 883 | 821 | |
Interest expenses | 345 | 771 | |
Air catering expenses | 147 | 166 | |
Provision for early retirement benefits | 1 | 2 | |
Others | 1,164 | 1,265 | |
Accrued expenses | ¥ 15,745 | ¥ 15,682 | [1] |
[1] | The Group has initially applied IFRS 16 at January 1, 2019 using the modified retrospective approach. Under this approach, comparative information is not restated. See Note 2(b). |
Other Liabilities - Summary of
Other Liabilities - Summary of Other Liabilities (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Subclassifications of assets, liabilities and equities [abstract] | |||
Civil Aviation Development Fund and airport tax payable | ¥ 1,937 | ¥ 2,012 | |
Payable for purchase of property, plant and equipment | 2,070 | 1,608 | |
Sales agent deposits | 592 | 597 | |
Other taxes payable | 426 | 443 | |
Deposit received for chartered flights | 214 | 186 | |
Others | 2,002 | 1,727 | |
Total | ¥ 7,241 | ¥ 6,573 | [1] |
[1] | The Group has initially applied IFRS 16 at January 1, 2019 using the modified retrospective approach. Under this approach, comparative information is not restated. See Note 2(b). |
Provision for Major Overhauls -
Provision for Major Overhauls - Details of Provision for Major Overhauls in Respect of Aircraft Held under Leases (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Statement [Line Items] | |||
Beginning balance | ¥ 3,652 | ¥ 3,370 | |
Additional provision | 768 | 943 | |
Utilization | (692) | (661) | |
Ending balance | 4,425 | 3,652 | |
Less: current portion | (883) | (821) | |
Total | 3,542 | 2,831 | [1] |
IFRS 16 [Member] | |||
Statement [Line Items] | |||
Beginning balance | ¥ 4,349 | ||
Ending balance | ¥ 4,349 | ||
[1] | The Group has initially applied IFRS 16 at January 1, 2019 using the modified retrospective approach. Under this approach, comparative information is not restated. See Note 2(b). |
Provision For Major Overhauls_2
Provision For Major Overhauls - Additional Information (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Reconciliation of changes in other provisions [abstract] | ||||
Provision for major overhauls | ¥ 4,425 | ¥ 697 | ¥ 3,652 | ¥ 3,370 |
Provision for Early Retiremen_3
Provision for Early Retirement Benefits - Details of Provision for Early Retirement Benefits in Respect of Obligations to Early Retired Employees (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Provisions [abstract] | ||
Beginning balance | ¥ 4 | ¥ 7 |
Provision for the year (Note 13) | 0 | 1 |
Payments made during the year | (3) | (4) |
Ending balance | 1 | 4 |
Less: current portion (Note 44) | (1) | (2) |
Total | ¥ 0 | ¥ 2 |
Deferred Benefits and Gains - S
Deferred Benefits and Gains - Summary of Deferred Benefits and Gains (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2019 | ||
Subclassifications of assets, liabilities and equities [abstract] | ||||
Leases rebates | ¥ 0 | ¥ 47 | ¥ 47 | |
Maintenance rebates | 600 | 746 | 84 | |
Gains relating to sale and leaseback | 0 | 15 | ¥ 15 | |
Government grants | 222 | 85 | ||
Others | 11 | 13 | ||
Deferred benefits and gains | ¥ 833 | ¥ 906 | [1] | |
[1] | The Group has initially applied IFRS 16 at January 1, 2019 using the modified retrospective approach. Under this approach, comparative information is not restated. See Note 2(b). |
Deferred Benefits and Gains - A
Deferred Benefits and Gains - Additional Information (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Text block [abstract] | |||
Leases rebates | ¥ 0 | ¥ 47 | ¥ 47 |
Maintenance rebates | 600 | 84 | 746 |
Gains relating to sale and leaseback | ¥ 0 | ¥ 15 | ¥ 15 |
Share Capital - Summary of Shar
Share Capital - Summary of Share Capital (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of classes of share capital [line items] | |||
Issued capital | ¥ 12,267 | ¥ 12,267 | [1] |
Trade- restricted [member] | |||
Disclosure of classes of share capital [line items] | |||
Issued capital | 1,090 | 2,179 | |
Tradable [member] | |||
Disclosure of classes of share capital [line items] | |||
Issued capital | 11,177 | 10,088 | |
A Shares (par value RMB1.00 per share) [member] | Trade- restricted [member] | |||
Disclosure of classes of share capital [line items] | |||
Issued capital | 0 | 1,089 | |
A Shares (par value RMB1.00 per share) [member] | Tradable [member] | |||
Disclosure of classes of share capital [line items] | |||
Issued capital | 4,073 | 2,984 | |
H Shares (par value RMB1.00 per share) [member] | Trade- restricted [member] | |||
Disclosure of classes of share capital [line items] | |||
Issued capital | 601 | 601 | |
H Shares (par value RMB1.00 per share) [member] | Tradable [member] | |||
Disclosure of classes of share capital [line items] | |||
Issued capital | 3,065 | 3,065 | |
Domestic state owned shares (par value RMB1.00 per share) [member] | Trade- restricted [member] | |||
Disclosure of classes of share capital [line items] | |||
Issued capital | 489 | 489 | |
Domestic state owned shares (par value RMB1.00 per share) [member] | Tradable [member] | |||
Disclosure of classes of share capital [line items] | |||
Issued capital | ¥ 4,039 | ¥ 4,039 | |
[1] | The Group has initially applied IFRS 16 at January 1, 2019 using the modified retrospective approach. Under this approach, comparative information is not restated. See Note 2(b). |
Share Capital - Summary of Sh_2
Share Capital - Summary of Share Capital (Parenthetical) (Detail) | 1 Months Ended | ||
Sep. 30, 2018Entityshares | Dec. 31, 2019¥ / sharesshares | Dec. 31, 2018¥ / sharesshares | |
A Shares (par value RMB1.00 per share) owned by CSAH [Member] | |||
Disclosure of classes of share capital [line items] | |||
Lock-up period | 36 months | ||
A Shares (par value RMB1.00 per share) owned by CSAH [Member] | Trade- restricted [member] | |||
Disclosure of classes of share capital [line items] | |||
Number of shares issued | 489,202,658 | 489,202,658 | |
Par value of share | ¥ / shares | ¥ 1 | ¥ 1 | |
A Shares (par value RMB1.00 per share) owned by CSAH [Member] | Tradable [member] | |||
Disclosure of classes of share capital [line items] | |||
Number of shares issued | 4,039,228,665 | 4,039,228,665 | |
Par value of share | ¥ / shares | ¥ 1 | ¥ 1 | |
A Shares (par value RMB1.00 per share) [member] | Trade- restricted [member] | |||
Disclosure of classes of share capital [line items] | |||
Number of shares issued | 0 | 1,088,870,431 | |
A Shares (par value RMB1.00 per share) [member] | Tradable [member] | |||
Disclosure of classes of share capital [line items] | |||
Number of shares issued | 4,072,291,766 | 2,983,421,335 | |
Par value of share | ¥ / shares | ¥ 1 | ¥ 1 | |
H Shares (par value RMB1.00 per share) [member] | Trade- restricted [member] | |||
Disclosure of classes of share capital [line items] | |||
Number of shares issued | 600,925,925 | 600,925,925 | |
Par value of share | ¥ / shares | ¥ 1 | ¥ 1 | |
H Shares (par value RMB1.00 per share) [member] | Tradable [member] | |||
Disclosure of classes of share capital [line items] | |||
Number of shares issued | 3,065,523,272 | 3,065,523,272 | |
Par value of share | ¥ / shares | ¥ 1 | ¥ 1 | |
New A Shares (par value RMB1.00 per share) [member] | |||
Disclosure of classes of share capital [line items] | |||
Lock-up period | 12 months | ||
New A Shares (par value RMB1.00 per share) [member] | Trade- restricted [member] | |||
Disclosure of classes of share capital [line items] | |||
Par value of share | ¥ / shares | ¥ 1 | ||
CSAH And Other Six Entities [member] | A Shares (par value RMB1.00 per share) [member] | |||
Disclosure of classes of share capital [line items] | |||
Number of shares issued | 1,578,073,089 | ||
Number of entities | Entity | 6 | ||
CSAH [member] | H Shares (par value RMB1.00 per share) [member] | |||
Disclosure of classes of share capital [line items] | |||
Number of shares issued | 600,925,925 | ||
Lock-up period | 36 months | ||
Other parties [member] | A Shares (par value RMB1.00 per share) [member] | Trade- restricted [member] | |||
Disclosure of classes of share capital [line items] | |||
Number of shares issued | 1,088,870,431 |
Reserves - Additional Informati
Reserves - Additional Information (Detail) - CNY (¥) ¥ / shares in Units, ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of reserves within equity [line items] | |||
Final dividend proposed after the end of the reporting year, per share | ¥ 0.05 | ¥ 0.05 | |
Total dividend proposed by directors | ¥ 613 | ¥ 613 | |
Appropriations to reserves | 0 | 0 | ¥ 0 |
Other reserve [member] | |||
Disclosure of reserves within equity [line items] | |||
Appropriations to reserves | 181 | 221 | |
Increase in other reserve | 44 | 4 | |
Decrease in other reserve | ¥ 10 | ¥ 0 |
Reserves - Final Dividend Propo
Reserves - Final Dividend Proposed after the End of Reporting Year Payable to Equity Shareholders of the Company (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of reserves within equity [abstract] | ||
Final dividend proposed after the end of the reporting year of RMB0.05 per share (2018: RMB0.05 per share) (inclusive of applicable tax) | ¥ 613 | ¥ 613 |
Reserves - Final Dividend Pro_2
Reserves - Final Dividend Proposed after the End of Reporting Year Payable to Equity Shareholders of the Company (Parenthetical) (Detail) - ¥ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of reserves within equity [abstract] | ||
Final dividend proposed after the end of the reporting year, per share | ¥ 0.05 | ¥ 0.05 |
Commitments - Capital Commitmen
Commitments - Capital Commitments Outstanding not Provided for in Financial Statements (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of detailed information about capital commitment [line items] | ||
Capital commitments | ¥ 86,831 | ¥ 103,546 |
Aircraft and flight equipment [member] | ||
Disclosure of detailed information about capital commitment [line items] | ||
Authorised and contracted for | 71,224 | 82,199 |
Acquisition interest in joint venture [member] | ||
Disclosure of detailed information about capital commitment [line items] | ||
Authorised and contracted for | 322 | 26 |
Joint ventures [member] | ||
Disclosure of detailed information about capital commitment [line items] | ||
Authorised and contracted for | 0 | 14 |
Authorised but not contracted for | 31 | 21 |
Investments accounted for using equity method [member] | ||
Disclosure of detailed information about capital commitment [line items] | ||
Authorised and contracted for | 554 | 40 |
Capital commitments | 585 | 61 |
Other property, plant and equipment [member] | ||
Disclosure of detailed information about capital commitment [line items] | ||
Authorised and contracted for | 4,571 | 7,224 |
Authorised but not contracted for | 10,451 | 14,062 |
Capital commitments | 15,022 | 21,286 |
Acquisition interest in subsidiary [member] | ||
Disclosure of detailed information about capital commitment [line items] | ||
Authorised and contracted for | ¥ 232 | ¥ 0 |
Commitments - Approximate Total
Commitments - Approximate Total Future Payments, Including Estimated Amounts for Price Escalation through Anticipated Delivery Dates for Aircraft and Flight Equipment (Detail) - Aircraft and flight equipment [member] - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Capital commitments | ¥ 71,224 | ¥ 82,199 |
2019 [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Capital commitments | 0 | 38,141 |
2020 [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Capital commitments | 41,442 | 32,395 |
2021 [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Capital commitments | 21,077 | 8,628 |
2022 [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Capital commitments | 5,464 | 3,035 |
2023 and afterwards [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Capital commitments | ¥ 3,241 | ¥ 0 |
Commitments - Additional Inform
Commitments - Additional Information (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | |
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |||
Operating Lease Payments | ¥ 9,920 | ¥ 8,996 | |
Land and buildings [member] | |||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |||
Operating Lease Payments | 665 | ||
Aircraft [member] | |||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |||
Operating Lease Payments | 78 | ||
IFRS Sixteen [Member] | |||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |||
Operating lease commitments | ¥ 75,729 | ¥ 75,729 |
Material Related Party Transa_3
Material Related Party Transactions - Key Management Personnel Remuneration (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of remuneration of key management personnel [line items] | |||
Salaries, wages and welfare | ¥ 13,803 | ¥ 15,218 | ¥ 12,151 |
Retirement scheme contributions | 1,785 | 1,797 | 1,841 |
Remuneration for key management personnel | 15,588 | 17,015 | 13,992 |
Directors and supervisors [member] | |||
Disclosure of remuneration of key management personnel [line items] | |||
Remuneration for key management personnel | 1,298 | 878 | 2,952 |
Senior management [member] | |||
Disclosure of remuneration of key management personnel [line items] | |||
Remuneration for key management personnel | ¥ 14,290 | ¥ 16,137 | ¥ 11,040 |
Material Related Party Transa_4
Material Related Party Transactions - Details of Significant Transactions with Related Parties (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CSAH and its affiliates [member] | |||
Disclosure of transactions between related parties [line items] | |||
Acquisition of a subsidiary | ¥ 0 | ¥ 0 | ¥ 47 |
Equity transaction | 0 | 1,602 | 0 |
CSAH and its affiliates [member] | Cargo handling income and rental income [member] | |||
Disclosure of transactions between related parties [line items] | |||
Revenue from rendering of services related party transactions | 7 | 4 | 3 |
CSAH and its affiliates [member] | Aviation material sales income [member] | |||
Disclosure of transactions between related parties [line items] | |||
Revenue from rendering of services related party transactions | 36 | 6 | 4 |
CSAH and its affiliates [member] | Entrusted management income [member] | |||
Disclosure of transactions between related parties [line items] | |||
Revenue from rendering of services related party transactions | 27 | 27 | 0 |
CSAH and its affiliates [member] | Others [member] | |||
Disclosure of transactions between related parties [line items] | |||
Revenue from rendering of services related party transactions | 1 | 9 | 8 |
CSAH and its affiliates [member] | Cargo handling charges [member] | |||
Disclosure of transactions between related parties [line items] | |||
Services received related party transactions | 0 | 111 | 112 |
CSAH and its affiliates [member] | Commission expenses [member] | |||
Disclosure of transactions between related parties [line items] | |||
Services received related party transactions | 44 | 14 | 44 |
CSAH and its affiliates [member] | Transportation expense [member] | |||
Disclosure of transactions between related parties [line items] | |||
Services received related party transactions | 0 | 10 | 0 |
CSAH and its affiliates [member] | Maintenance material purchase expense and lease charges for maintenance material [member] | |||
Disclosure of transactions between related parties [line items] | |||
Services received related party transactions | 165 | 98 | 43 |
CSAH and its affiliates [member] | Software service expenses [member] | |||
Disclosure of transactions between related parties [line items] | |||
Services received related party transactions | 0 | 5 | 4 |
CSAH and its affiliates [member] | Air catering supplies expenses [member] | |||
Disclosure of transactions between related parties [line items] | |||
Services received related party transactions | 142 | 135 | 125 |
CSAH and its affiliates [member] | Repairing charges [member] | |||
Disclosure of transactions between related parties [line items] | |||
Services received related party transactions | 0 | 1,184 | 1,537 |
CSAH and its affiliates [member] | Lease charges for land and buildings [member] | |||
Disclosure of transactions between related parties [line items] | |||
Services received related party transactions | 353 | 294 | 189 |
CSAH and its affiliates [member] | Property management fee [member] | |||
Disclosure of transactions between related parties [line items] | |||
Services received related party transactions | 151 | 106 | 72 |
CSAH and its affiliates [member] | Acquisition of property [member] | |||
Disclosure of transactions between related parties [line items] | |||
Services received related party transactions | 0 | 160 | 0 |
CSAH and its affiliates [member] | Others [member] | |||
Disclosure of transactions between related parties [line items] | |||
Services received related party transactions | 7 | 5 | 12 |
CSAH and its affiliates [member] | Commission income [member] | |||
Disclosure of transactions between related parties [line items] | |||
Revenue from rendering of services related party transactions | 14 | 0 | 0 |
CSAH and its affiliates [member] | Consideration of disposal of aircraft [member] | |||
Disclosure of transactions between related parties [line items] | |||
Services received related party transactions | 0 | 481 | 0 |
CSAH and its affiliates [member] | Payment of lease charges on aircraft | |||
Disclosure of transactions between related parties [line items] | |||
Services received related party transactions | 2,696 | 1,542 | |
Joint ventures and associates [member] | Others [member] | |||
Disclosure of transactions between related parties [line items] | |||
Revenue from rendering of services related party transactions | 15 | 13 | 7 |
Joint ventures and associates [member] | Commission expenses [member] | |||
Disclosure of transactions between related parties [line items] | |||
Services received related party transactions | 14 | ||
Joint ventures and associates [member] | Repairing charges [member] | |||
Disclosure of transactions between related parties [line items] | |||
Services received related party transactions | 2,442 | 786 | 0 |
Joint ventures and associates [member] | Property management fee [member] | |||
Disclosure of transactions between related parties [line items] | |||
Services received related party transactions | 26 | 28 | 26 |
Joint ventures and associates [member] | Others [member] | |||
Disclosure of transactions between related parties [line items] | |||
Services received related party transactions | 7 | 7 | 6 |
Joint ventures and associates [member] | Repairing charges and maintenance material purchase expenses[member] | |||
Disclosure of transactions between related parties [line items] | |||
Services received related party transactions | 2,956 | 2,692 | 2,492 |
Joint ventures and associates [member] | Flight simulation service charges [member] | |||
Disclosure of transactions between related parties [line items] | |||
Services received related party transactions | 0 | 0 | 194 |
Joint ventures and associates [member] | Training expenses [member] | |||
Disclosure of transactions between related parties [line items] | |||
Services received related party transactions | 0 | 0 | 36 |
Joint ventures and associates [member] | Ground service expenses [member] | |||
Disclosure of transactions between related parties [line items] | |||
Services received related party transactions | 112 | 123 | 123 |
Joint ventures and associates [member] | Air catering supplies [member] | |||
Disclosure of transactions between related parties [line items] | |||
Services received related party transactions | 93 | 98 | 109 |
Joint ventures and associates [member] | Advertising expenses [member] | |||
Disclosure of transactions between related parties [line items] | |||
Services received related party transactions | 196 | 105 | 74 |
Joint ventures and associates [member] | Maintenance material sales and handling income [member] | |||
Disclosure of transactions between related parties [line items] | |||
Revenue from rendering of services related party transactions | 7 | 15 | 28 |
Joint ventures and associates [member] | Rental income [member] | |||
Disclosure of transactions between related parties [line items] | |||
Revenue from rendering of services related party transactions | 0 | 0 | 18 |
Joint ventures and associates [member] | Entrustment income for advertising media business [member] | |||
Disclosure of transactions between related parties [line items] | |||
Revenue from rendering of services related party transactions | 1 | 1 | 20 |
Joint ventures and associates [member] | Repairing income [member] | |||
Disclosure of transactions between related parties [line items] | |||
Revenue from rendering of services related party transactions | 4 | 11 | 1 |
Joint ventures and associates [member] | Air catering supplies income [Member] | |||
Disclosure of transactions between related parties [line items] | |||
Revenue from rendering of services related party transactions | 35 | 16 | 26 |
Joint ventures and associates [member] | Transfer of pilots income [Member] | |||
Disclosure of transactions between related parties [line items] | |||
Revenue from rendering of services related party transactions | 35 | ||
Joint ventures and associates [member] | Commission income [member] | |||
Disclosure of transactions between related parties [line items] | |||
Revenue from rendering of services related party transactions | 0 | 20 | 26 |
Joint ventures and associates [member] | Ground service income [member] | |||
Disclosure of transactions between related parties [line items] | |||
Revenue from rendering of services related party transactions | 16 | 13 | 10 |
Joint ventures and associates [member] | Labor service income and rental income [member] | |||
Disclosure of transactions between related parties [line items] | |||
Revenue from rendering of services related party transactions | 8 | 22 | 20 |
Other related companies [member] | Others [member] | |||
Disclosure of transactions between related parties [line items] | |||
Services received related party transactions | 9 | 3 | 4 |
Other related companies [member] | Advertising expenses [member] | |||
Disclosure of transactions between related parties [line items] | |||
Services received related party transactions | 0 | 10 | 10 |
Other related companies [member] | Air tickets income [member] | |||
Disclosure of transactions between related parties [line items] | |||
Revenue from rendering of services related party transactions | 0 | 9 | 6 |
Other related companies [member] | Computer reservation services [member] | |||
Disclosure of transactions between related parties [line items] | |||
Services received related party transactions | 685 | 592 | 576 |
Other related companies [member] | Aviation supplies expenses [member] | |||
Disclosure of transactions between related parties [line items] | |||
Services received related party transactions | 53 | 48 | 39 |
Other related companies [member] | Canteen service [member] | |||
Disclosure of transactions between related parties [line items] | |||
Services received related party transactions | ¥ 24 | ¥ 19 | ¥ 15 |
Material Related Party Transa_5
Material Related Party Transactions - Additional Information (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Disclosure of transactions between related parties [line items] | ||||
Loans from related party | ¥ 51,180 | ¥ 54,417 | [1] | |
Interest expense paid | 1,840 | 1,891 | ¥ 1,628 | |
Other flight equipment [member] | ||||
Disclosure of transactions between related parties [line items] | ||||
Capital commitments | 0 | 291 | ||
Southern Airlines Group Finance Co., Ltd [member] | ||||
Disclosure of transactions between related parties [line items] | ||||
Loans from related party | 76 | 758 | ||
Interest expense paid | ¥ 9 | ¥ 18 | ||
Interest rate range | 4.28% to 4.35% | 3.92% to 4.51% | ||
Interest income received on deposits | ¥ 40 | ¥ 80 | ||
Southern Airlines Group Finance Co., Ltd [member] | CSAH [member] | ||||
Disclosure of transactions between related parties [line items] | ||||
Loans from related party | 5,520 | 500 | ||
Interest expense paid | ¥ 86 | ¥ 10 | ||
Percentage of benchmark interest rate | 90.00% | |||
Interest rate | 3.92% | 3.92% | ||
CSAH and its affiliates [member] | Land and buildings [member] | ||||
Disclosure of transactions between related parties [line items] | ||||
Capital commitments | ¥ 665 | |||
CSAH and its affiliates [member] | Owned and finance leased aircraft [member] | ||||
Disclosure of transactions between related parties [line items] | ||||
Capital commitments | 78 | |||
CSAH and its affiliates [member] | CSAH [member] | ||||
Disclosure of transactions between related parties [line items] | ||||
Loans from related party | ¥ 5,520 | ¥ 500 | ||
[1] | The Group has initially applied IFRS 16 at January 1, 2019 using the modified retrospective approach. Under this approach, comparative information is not restated. See Note 2(b). |
Material Related Party Transa_6
Material Related Party Transactions - Details of Balances with Related Parties (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | |
Disclosure of transactions between related parties [line items] | ||||
Receivables | ¥ 73 | ¥ 90 | [1] | |
Accrued expenses | 2,590 | 3,154 | ||
Lease liabilities | 134,074 | ¥ 120,377 | 72,221 | |
Prepayments of acquisition of long-term assets | 513 | 227 | ||
Payables | 170 | 127 | [1] | |
CSAH and its affiliates [member] | ||||
Disclosure of transactions between related parties [line items] | ||||
Receivables | 18 | 51 | ||
Accrued expenses | 55 | 62 | ||
Lease liabilities | 23,734 | 0 | ||
Prepayments of acquisition of long-term assets | 160 | 80 | ||
Payables | 116 | 49 | ||
Obligations under finance leases | 0 | 13,360 | ||
Associates [member] | ||||
Disclosure of transactions between related parties [line items] | ||||
Receivables | 35 | 22 | ||
Accrued expenses | 169 | 139 | ||
Prepayments of acquisition of long-term assets | 353 | 147 | ||
Payables | 1 | 12 | ||
Joint ventures [member] | ||||
Disclosure of transactions between related parties [line items] | ||||
Receivables | 20 | 17 | ||
Accrued expenses | 2,092 | 2,320 | ||
Payables | 53 | 63 | ||
Other related companies [member] | ||||
Disclosure of transactions between related parties [line items] | ||||
Accrued expenses | 274 | 633 | ||
Payables | ¥ 0 | ¥ 3 | ||
[1] | The Group has initially applied IFRS 16 at January 1, 2019 using the modified retrospective approach. Under this approach, comparative information is not restated. See Note 2(b). |
Material Related Party Transa_7
Material Related Party Transactions - Loans from and Deposits Placed with Southern Airlines Group Finance Co., Ltd (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of transactions between related parties [line items] | |||
Borrowings | ¥ 51,180 | ¥ 54,417 | [1] |
Deposits placed with SA Finance | 1,848 | 6,909 | |
Within 1 year [member] | |||
Disclosure of transactions between related parties [line items] | |||
Borrowings | 37,543 | 38,741 | |
After 1 year but within 2 years [member] | |||
Disclosure of transactions between related parties [line items] | |||
Borrowings | 3,773 | 7,757 | |
After 2 years but within 5 years [member] | |||
Disclosure of transactions between related parties [line items] | |||
Borrowings | 8,389 | 6,004 | |
CSAH and its affiliates [member] | CSAH [member] | |||
Disclosure of transactions between related parties [line items] | |||
Borrowings | 5,520 | 500 | |
CSAH and its affiliates [member] | CSAH [member] | Within 1 year [member] | |||
Disclosure of transactions between related parties [line items] | |||
Borrowings | 4,720 | 500 | |
CSAH and its affiliates [member] | CSAH [member] | After 1 year but within 2 years [member] | |||
Disclosure of transactions between related parties [line items] | |||
Borrowings | 0 | 0 | |
CSAH and its affiliates [member] | CSAH [member] | After 2 years but within 5 years [member] | |||
Disclosure of transactions between related parties [line items] | |||
Borrowings | 800 | 0 | |
Southern Airlines Group Finance Co., Ltd [member] | |||
Disclosure of transactions between related parties [line items] | |||
Borrowings | 76 | 758 | |
Deposits placed with SA Finance | 711 | 5,583 | |
Southern Airlines Group Finance Co., Ltd [member] | Unsecured loans [Member] | |||
Disclosure of transactions between related parties [line items] | |||
Borrowings | 76 | 758 | |
Southern Airlines Group Finance Co., Ltd [member] | Unsecured loans [Member] | Within 1 year [member] | |||
Disclosure of transactions between related parties [line items] | |||
Borrowings | 23 | 630 | |
Southern Airlines Group Finance Co., Ltd [member] | Unsecured loans [Member] | After 1 year but within 2 years [member] | |||
Disclosure of transactions between related parties [line items] | |||
Borrowings | 0 | 10 | |
Southern Airlines Group Finance Co., Ltd [member] | Unsecured loans [Member] | After 2 years but within 5 years [member] | |||
Disclosure of transactions between related parties [line items] | |||
Borrowings | 53 | 118 | |
Southern Airlines Group Finance Co., Ltd [member] | CSAH [member] | |||
Disclosure of transactions between related parties [line items] | |||
Borrowings | ¥ 5,520 | ¥ 500 | |
[1] | The Group has initially applied IFRS 16 at January 1, 2019 using the modified retrospective approach. Under this approach, comparative information is not restated. See Note 2(b). |
Employee Benefits Plan - Additi
Employee Benefits Plan - Additional Information (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Classes of Employee Benefits Expense [Line Items] | |||
Total contribution into the Pension Scheme | ¥ 985 | ¥ 598 | ¥ 546 |
Bottom of range [member] | |||
Classes of Employee Benefits Expense [Line Items] | |||
Percentage of salary costs contributed to defined contribution retirement schemes | 12.00% | 13.00% | 13.00% |
Top of range [member] | |||
Classes of Employee Benefits Expense [Line Items] | |||
Percentage of salary costs contributed to defined contribution retirement schemes | 16.00% | 20.00% | 20.00% |
Supplementary Information to _2
Supplementary Information to the Consolidated Cash Flow Statements - Additional Information (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Cash Flow Statements, Captions [Line Items] | |||
Non-cash transactions - introducing aircraft under leases | ¥ 30,351 | ||
Non-cash transactions - acquisition of aircraft under finance leases | ¥ 13,290 | ¥ 17,283 | |
Non - cash equity transaction of financing activities | ¥ 1,741 | ¥ 0 | |
Equity transaction of MTU [member] | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Total equity interest | 50.00% |
Contingent Liabilities - Additi
Contingent Liabilities - Additional Information (Detail) - Pilot trainees [member] - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of contingent liabilities [line items] | ||
Guarantees provided on personal bank loans | ¥ 696,000 | ¥ 696,000 |
Personal bank loans drawn under guarantees | 275,000 | 318,000 |
Amount paid to banks due to default of payments | ¥ 0 | ¥ 1,000 |
Non-Adjusting Events After th_2
Non-Adjusting Events After the Financial Year End - Additional Information (Detail) ¥ in Millions, $ in Millions | Oct. 30, 2019CNY (¥)shares | Oct. 30, 2019HKD ($)shares | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) |
Disclosure of non-adjusting events after reporting period [line items] | ||||
Number of shares issued | ¥ | ¥ 12,649 | ¥ 1,321 | ||
Class A share subscription agreement [member] | CSAH and its affiliates [member] | ||||
Disclosure of non-adjusting events after reporting period [line items] | ||||
Number of shares authorised | shares | 2,453,434,457 | 2,453,434,457 | ||
Number of shares issued | ¥ | ¥ 16,800 | |||
Class H Share subscription agreement [member] | CSAH and its affiliates [member] | ||||
Disclosure of non-adjusting events after reporting period [line items] | ||||
Number of shares authorised | shares | 613,358,614 | 613,358,614 | ||
Number of shares issued | $ | $ 3,500 |
Directors' and Supervisors' E_3
Directors' and Supervisors' Emoluments - Remuneration of Every Director and Supervisor (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of transactions between related parties [line items] | |||
Salaries, wages and welfare | ¥ 13,803 | ¥ 15,218 | ¥ 12,151 |
Employer's contribution to a retirement benefit scheme | 1,785 | 1,797 | 1,841 |
Total | 15,588 | 17,015 | 13,992 |
Wang Chang Shun [member] | |||
Disclosure of transactions between related parties [line items] | |||
Directors' fees | 0 | 0 | 0 |
Salaries, wages and welfare | 0 | 0 | 0 |
Housing allowance | 0 | 0 | 0 |
Employer's contribution to a retirement benefit scheme | 0 | 0 | 0 |
Total | 0 | 0 | 0 |
Ma Xu Lun [Member] | |||
Disclosure of transactions between related parties [line items] | |||
Directors' fees | 0 | ||
Salaries, wages and welfare | 0 | ||
Housing allowance | 0 | ||
Employer's contribution to a retirement benefit scheme | 0 | ||
Total | 0 | ||
Yuan Xin An [member] | |||
Disclosure of transactions between related parties [line items] | |||
Directors' fees | 0 | ||
Salaries, wages and welfare | 0 | ||
Housing allowance | 0 | ||
Employer's contribution to a retirement benefit scheme | 0 | ||
Total | 0 | ||
Yang Li Hua [member] | |||
Disclosure of transactions between related parties [line items] | |||
Directors' fees | 0 | ||
Salaries, wages and welfare | 0 | ||
Housing allowance | 0 | ||
Employer's contribution to a retirement benefit scheme | 0 | ||
Total | 0 | ||
Tan Wan Geng [member] | |||
Disclosure of transactions between related parties [line items] | |||
Directors' fees | 0 | 0 | |
Salaries, wages and welfare | 0 | 0 | |
Housing allowance | 0 | 0 | |
Employer's contribution to a retirement benefit scheme | 0 | 0 | |
Total | 0 | 0 | |
Han Wen Sheng [member] | |||
Disclosure of transactions between related parties [line items] | |||
Directors' fees | 0 | ||
Salaries, wages and welfare | 0 | ||
Housing allowance | 0 | ||
Employer's contribution to a retirement benefit scheme | 0 | ||
Total | 0 | ||
Li Shao Bin [member] | |||
Disclosure of transactions between related parties [line items] | |||
Directors' fees | 0 | ||
Salaries, wages and welfare | 812 | ||
Housing allowance | 0 | ||
Employer's contribution to a retirement benefit scheme | 123 | ||
Total | 935 | ||
Pan Fu [member] | |||
Disclosure of transactions between related parties [line items] | |||
Directors' fees | 0 | 0 | 0 |
Salaries, wages and welfare | 0 | 0 | 0 |
Housing allowance | 0 | 0 | 0 |
Employer's contribution to a retirement benefit scheme | 0 | 0 | 0 |
Total | 0 | 0 | 0 |
Li Jia Shi [member] | |||
Disclosure of transactions between related parties [line items] | |||
Directors' fees | 0 | 0 | 0 |
Salaries, wages and welfare | 0 | 84 | 901 |
Housing allowance | 0 | 0 | 0 |
Employer's contribution to a retirement benefit scheme | 0 | 12 | 126 |
Total | 0 | 96 | 1,027 |
Zhang Wei [member] | |||
Disclosure of transactions between related parties [line items] | |||
Directors' fees | 0 | ||
Salaries, wages and welfare | 0 | ||
Housing allowance | 0 | ||
Employer's contribution to a retirement benefit scheme | 0 | ||
Total | 0 | ||
Yang Yi Hua [member] | |||
Disclosure of transactions between related parties [line items] | |||
Directors' fees | 0 | ||
Salaries, wages and welfare | 0 | ||
Housing allowance | 0 | ||
Employer's contribution to a retirement benefit scheme | 0 | ||
Total | 0 | ||
Wu De Ming [member] | |||
Disclosure of transactions between related parties [line items] | |||
Directors' fees | 0 | ||
Salaries, wages and welfare | 419 | ||
Housing allowance | 0 | ||
Employer's contribution to a retirement benefit scheme | 127 | ||
Total | 546 | ||
Ning Xiang Dong [member] | |||
Disclosure of transactions between related parties [line items] | |||
Directors' fees | 150 | ||
Salaries, wages and welfare | 0 | ||
Housing allowance | 0 | ||
Employer's contribution to a retirement benefit scheme | 0 | ||
Total | 150 | ||
Liu Chang Le [member] | |||
Disclosure of transactions between related parties [line items] | |||
Directors' fees | 150 | ||
Salaries, wages and welfare | 0 | ||
Housing allowance | 0 | ||
Employer's contribution to a retirement benefit scheme | 0 | ||
Total | 150 | ||
Tan Jin Song [member] | |||
Disclosure of transactions between related parties [line items] | |||
Directors' fees | 150 | 150 | 150 |
Salaries, wages and welfare | 0 | 0 | 0 |
Housing allowance | 0 | 0 | 0 |
Employer's contribution to a retirement benefit scheme | 0 | 0 | 0 |
Total | 150 | 150 | 150 |
Guo Wei [member] | |||
Disclosure of transactions between related parties [line items] | |||
Directors' fees | 150 | ||
Salaries, wages and welfare | 0 | ||
Housing allowance | 0 | ||
Employer's contribution to a retirement benefit scheme | 0 | ||
Total | 150 | ||
Jiao Shu Ge [member] | |||
Disclosure of transactions between related parties [line items] | |||
Directors' fees | 150 | 150 | 150 |
Salaries, wages and welfare | 0 | 0 | 0 |
Housing allowance | 0 | 0 | 0 |
Employer's contribution to a retirement benefit scheme | 0 | 0 | 0 |
Total | 150 | 150 | 150 |
Mao Juan [member] | |||
Disclosure of transactions between related parties [line items] | |||
Directors' fees | 0 | 0 | 0 |
Salaries, wages and welfare | 712 | 658 | 324 |
Housing allowance | 0 | 0 | 0 |
Employer's contribution to a retirement benefit scheme | 129 | 124 | 120 |
Total | 841 | 782 | 444 |
Zheng Fan [member] | |||
Disclosure of transactions between related parties [line items] | |||
Directors' fees | 60 | 0 | |
Salaries, wages and welfare | 0 | 0 | |
Housing allowance | 0 | 0 | |
Employer's contribution to a retirement benefit scheme | 0 | 0 | |
Total | 60 | 0 | |
Gu Hui Zhong [member] | |||
Disclosure of transactions between related parties [line items] | |||
Directors' fees | 60 | 60 | |
Salaries, wages and welfare | 0 | 0 | |
Housing allowance | 0 | 0 | |
Employer's contribution to a retirement benefit scheme | 0 | 0 | |
Total | 60 | 60 | |
Lin Xiao Chun [member] | |||
Disclosure of transactions between related parties [line items] | |||
Directors' fees | 0 | ||
Salaries, wages and welfare | 367 | ||
Housing allowance | 0 | ||
Employer's contribution to a retirement benefit scheme | 90 | ||
Total | 457 | ||
Zhang Zi Fang [member] | |||
Disclosure of transactions between related parties [line items] | |||
Directors' fees | 0 | 0 | 0 |
Salaries, wages and welfare | 0 | 0 | 0 |
Housing allowance | 0 | 0 | 0 |
Employer's contribution to a retirement benefit scheme | 0 | 0 | 0 |
Total | ¥ 0 | ¥ 0 | ¥ 0 |
Possible impact of amendments_3
Possible impact of amendments, new standards and interpretations issued but not yet effective for the year ended December 31, 2019 - Summary of New Standards or Interpretations Not Yet Adopted (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
Amendmentd to IFRS 3 Definition of a business [Member] | |
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |
Effective for accounting periods beginning on or after | Jan. 1, 2020 |
Amendments to IAS 1 and IAS 8 Definition of material [Member] | |
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |
Effective for accounting periods beginning on or after | Jan. 1, 2020 |