Exhibit 99.1
Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.
FIRST QUARTERLY REPORT OF 2023
Summary
The quarterly financial report for the first quarter of 2023 (i.e. the three months ended 31 March 2023, the “reporting period”) of China Southern Airlines Company Limited (the “Company”, together with its subsidiaries, the “Group”) was prepared in accordance with the PRC Accounting Standards and was unaudited.
This announcement is published pursuant to Rule 13.09 and Rule 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.
IMPORTANT NOTICE:
The board of directors (the “Board”) and the supervisory committee of China Southern Airlines Company Limited (the “Company”) and its directors (the “Directors”), supervisors and senior management warrant the truthfulness, accuracy and completeness of the content contained in this quarterly report, and the report does not contain inaccurate or misleading statements or material omission, and jointly and severally accept full legal responsibility.
The responsible person of the Company, Mr. Ma Xu Lun (Chairman), the responsible person of the accounting of the Company, Mr. Yao Yong (Executive Vice President, Chief Accountant and Chief Financial Officer of the Company), and the responsible person of the accounting department, Ms. Mao Juan (General Manager of Finance Department) warrant the truthfulness, accuracy and completeness of the financial statements contained in this quarterly report.
Whether the First Quarterly Financial Statements have been audited
☐ Yes √ No
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I. | MAJOR ACCOUNTING DATA |
(I) | Principal accounting data and financial indicators |
Unit: Million Currency: RMB
Items | The reporting period | Change as compared with the corresponding period last year (%) | ||||||||||
Operating revenue | 34,055 | 58.61 | ||||||||||
Net profit attributable to shareholders of the Company | -1,898 | N/A | ||||||||||
Net profit attributable to shareholders of the Company after deducting non-recurring gains and losses | -2,163 | N/A | ||||||||||
Net cash flows generated from operating activities | 8,808 | 51,711.76 | ||||||||||
Basic earnings per share (RMB/share) | -0.10 | N/A | ||||||||||
Diluted earnings per share (RMB/share) | -0.10 | N/A | ||||||||||
Weighted average return on net assets (%) | -3.18 | | Increase by 2.36 percentage points |
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As at the period | As at the end of last year | Change as year (%) | ||||||||||
Total assets | 308,760 | 312,001 | -1.04 | |||||||||
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Equity attributable to shareholders of the Company | 39,159 | 41,057 | -4.62 |
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(II) | Non-recurring gains and losses |
Unit: Million Currency: RMB
Items | Amount for the reporting period | |||
Gains or losses on disposal of non-current assets | 160 | |||
Government grants recorded in the income statement for the current period, exclusive of government grants which are closely related to the normal business of the Company and entitled pursuant to unified standard quota or amount under the government policy | 142 | |||
In addition to the valid hedging business related to the company’s normal business operations, the gains/losses from changes in fair value arising from the holding of trading financial assets, derivative financial assets, trading financial liabilities, derivative financial liabilities, and investment income from the disposal of trading financial assets, derivative financial assets, trading financial liabilities, derivative financial liabilities, and other investments in debt | 28 | |||
Other non-operating income and expenses other than the above | 63 | |||
Less: Effect of income tax | 48 | |||
Effect on non-controlling interests after taxation | 80 | |||
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Total | 265 | |||
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Notes on defining any non-recurring gains and losses items as listed in the “The No. 1 Explanatory Announcement Regarding Information Disclosure for Companies Issuing Securities Publically – Non- Recurring Gains and Losses” as recurring gains and losses items
☐ Applicable √ Not applicable
- 3 -
(III) | Changes to major accounting data and financial indicators and reasons |
√ Applicable ☐ Not applicable
Items | Percentage of change (%) | Main reason(s) | ||||
Operating revenue | 58.61 | The aviation passenger transportation market has recovered and passenger transport revenue has increased in the reporting period as compared with the same period last year. | ||||
Net profit attributable to shareholders of the Company | N/A | The aviation passenger transportation market has recovered and passenger transport revenue has increased in the reporting period as compared with the same period last year, which results in a decrease in losses. | ||||
Net profit attributable to shareholders of the Company after deducting non-recurring gains and losses | N/A | The aviation passenger transportation market has recovered and passenger transport revenue has increased in the reporting period as compared with the same period last year, which results in a decrease in losses. | ||||
Net cash flows generated from operating activities | 51,711.76 | The aviation passenger transportation market has recovered and passenger transport revenue has increased in the reporting period as compared with the same period last year. | ||||
Basic earnings per share | N/A | The aviation passenger transportation market has recovered and passenger transport revenue has increased in the reporting period as compared with the same period last year, which results in a decrease in losses. | ||||
Diluted earnings per share | N/A | The aviation passenger transportation market has recovered and passenger transport revenue has increased in the reporting period as compared with the same period last year, which results in a decrease in losses. | ||||
Weighted average return on net assets | | Increase by 2.36 percentage points |
| The aviation passenger transportation market has recovered and passenger transport revenue has increased in the reporting period as compared with the same period last year, which results in a decrease in losses. |
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II. | INFORMATION OF SHAREHOLDERS |
(I) | Total number of ordinary shareholders and number of preference shareholders with restored voting rights and shareholdings of the top ten shareholders |
Unit: Share
Total number of ordinary shareholders as at the end of the reporting period | 139,577 | | Total number of preference shareholders | | Not applicable | |||||||||||||||||||
Shareholdings of the top ten shareholders | ||||||||||||||||||||||||
Name of shareholder | Capacity of shareholder | Total number of shares held | Shareholding percentage (%) | Number of shares subject to trading restrictions | Status of pledged, marked or frozen shares | |||||||||||||||||||
Status of shares | Number of shares | |||||||||||||||||||||||
China Southern Air Holding Company Limited | State-owned legal entity | 9,404,468,936 | 51.90 | 3,257,005,885 | No | 0 | ||||||||||||||||||
Nan Lung Holding Limited | State-owned legal entity | 2,612,124,036 | 14.41 | 0 | No | 0 | ||||||||||||||||||
HKSCC Nominees Limited | Overseas legal entity | 1,750,872,837 | 9.66 | 0 | Not known | — | ||||||||||||||||||
Hong Kong Securities Clearing Company Limited | Overseas legal entity | 683,021,828 | 3.77 | 0 | No | 0 | ||||||||||||||||||
China Securities Finance Corporation Limited | State-owned legal entity | 320,484,148 | 1.77 | 0 | No | 0 | ||||||||||||||||||
American Airlines, Inc | Overseas legal entity | 270,606,272 | 1.49 | 0 | No | 0 | ||||||||||||||||||
China National Aviation Fuel Group Limited | State-owned legal entity | 261,685,354 | 1.44 | 0 | No | 0 | ||||||||||||||||||
China Structural Reform Fund Corporation Limited | State-owned legal entity | 72,077,475 | 0.40 | 0 | No | 0 | ||||||||||||||||||
Industrial Bank Co., Ltd. – Guangfa Ruiyi Leading Hybrid Securities Investment Fund | | Domestic non-State- owned legal entity | | 70,644,579 | 0.39 | 0 | No | 0 | ||||||||||||||||
Spring Airlines Co., Ltd. | | Domestic non-State- owned legal entity | | 68,547,561 | 0.38 | 0 | No | 0 |
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Particulars of the top ten shareholders not subject to trading restrictions | ||||||||
Name of shareholder | Number of tradable shares not subject to selling restrictions | Type and number of shares | ||||||
Type of shares | Number of shares | |||||||
China Southern Air Holding Company Limited | 6,147,463,051 | RMB ordinary shares | 6,147,463,051 | |||||
Nan Lung Holding Limited | 2,612,124,036 | Overseas-listed foreign shares | 2,612,124,036 | |||||
HKSCC Nominees Limited | 1,750,872,837 | Overseas-listed foreign shares | 1,750,872,837 | |||||
Hong Kong Securities Clearing Company Limited | 683,021,828 | RMB ordinary shares | 683,021,828 | |||||
China Securities Finance Corporation Limited | 320,484,148 | RMB ordinary shares | 320,484,148 | |||||
American Airlines, Inc. | 270,606,272 | Overseas-listed foreign shares | 270,606,272 | |||||
China National Aviation Fuel Group Limited | 261,685,354 | RMB ordinary shares | 261,685,354 | |||||
China Structural Reform Fund Corporation Limited | 72,077,475 | RMB ordinary shares | 72,077,475 | |||||
Industrial Bank Co., Ltd. – Guangfa Ruiyi Leading Hybrid Securities Investment Fund | 70,644,579 | RMB ordinary shares | 70,644,579 | |||||
Spring Airlines Co., Ltd. | 68,547,561 | RMB ordinary shares | 68,547,561 | |||||
Explanation of the related party relationship or concert party relationship of the above shareholders | China Southern Air Holding Company Limited held in aggregate 2,648,836,036 H shares of the Company through its wholly-owned subsidiaries in Hong Kong, namely Nan Lung Holding Limited and Perfect Lines (Hong Kong) Limited. The Company is not aware of any other related party relationship between other shareholders.
The overseas-listed foreign shares among the tradable shares not subject to the trading restrictions in the table above include 608,695,652 H shares and 368,852,459 H shares held by Nan Lung Holding Limited, a wholly-owned subsidiary of China Southern Air Holding Company Limited, the controlling shareholder of the Company, in connection with the subscription of the Company’s 2020 non-public issuance of H shares and the subscription of the Company’s 2022 non-public issuance of H shares, respectively. Nan Lung Holding Limited undertakes not to trade or transfer the aforesaid H shares within 36 months from the completion date of subscription for the aforementioned H shares. |
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Explanation on the top ten shareholders and the top ten shareholders not subject to trading restrictions who have participated in the business of margin financing and securities lending and margin refinancing (if any) | Not applicable |
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III. | IMPORTANT INFORMATION |
Other important information related to the Company’s business performance during the reporting period should be brought to the attention of the investors
√ Applicable ☐ Not applicable
Status on the guarantees provided to the SPVs of the Company as of the date of this report:
No. | Established SPVs | Actually Provided (Yes/No) | Guaranteed Amount (US$100 million) | |||||
1 | China Southern Airlines No. 1 | Yes | 1.50 | |||||
2 | China Southern Airlines No. 2 | Yes | 1.40 | |||||
3 | China Southern Airlines No. 3 | Yes | 3.28 | |||||
4 | China Southern Airlines No. 5 | Yes | 0.92 | |||||
5 | China Southern Airlines No. 6 | Yes | 0.35 | |||||
6 | China Southern Airlines No. 7 | Yes | 0.35 | |||||
7 | China Southern Airlines No. 8 | Yes | 0.35 | |||||
8 | China Southern Airlines No. 9 | Yes | 5.88 | |||||
9 | China Southern Airlines No. 10 | Yes | 5.17 | |||||
10 | China Southern Airlines No. 11 | Yes | 2.98 | |||||
11 | China Southern Airlines No. 12 | Yes | 0.25 | |||||
12 | China Southern Airlines No. 13 | Yes | 0.25 | |||||
13 | China Southern Airlines No. 14 | Yes | 0.33 | |||||
14 | China Southern Airlines No. 15 | Yes | 3.11 | |||||
15 | China Southern Airlines No. 16 | Yes | 5.26 | |||||
16 | China Southern Airlines No. 17 | Yes | 1.49 | |||||
17 | China Southern Airlines No. 18 | Yes | 2.50 | |||||
18 | China Southern Airlines No. 19 | Yes | 0.51 | |||||
19 | China Southern Airlines No. 20 | Yes | 0.51 | |||||
20 | China Southern Airlines No. 21 | Yes | 0.48 | |||||
21 | China Southern Airlines No. 22 | Yes | 0.48 |
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No. | Established SPVs | Actually Provided (Yes/No) | Guaranteed Amount (US$100 million) | |||||
22 | China Southern Airlines No. 23 | Yes | 0.48 | |||||
23 | China Southern Airlines No. 24 | Yes | 2.78 | |||||
24 | China Southern Airlines No. 25 | Yes | 2.04 | |||||
25 | China Southern Airlines No. 26 | Yes | 4.73 | |||||
26 | Chongqing Airlines No. 1 | Yes | 3.52 | |||||
27 | Chongqing Airlines No. 2 | Yes | 0.32 | |||||
28 | Xiamen Airlines No. 1 | Yes | 0.66 | |||||
29 | Xiamen Airlines No. 2 | Yes | 0.10 | |||||
30 | Xiamen Airlines No. 3 | Yes | 0.09 | |||||
31 | Xiamen Airlines No. 4 | Yes | 0.19 | |||||
32 | Xiamen Airlines No. 5 | Yes | 0.19 | |||||
33 | Xiamen Airlines No. 6 | Yes | 0.20 | |||||
34 | Xiamen Airlines No. 7 | Yes | 0.11 | |||||
35 | Xiamen Airlines No. 8 | Yes | 0.19 | |||||
36 | Xiamen Airlines No. 9 | Yes | 0.19 | |||||
37 | Xiamen Airlines No. 10 | Yes | 0.19 | |||||
38 | Xiamen Airlines No. 11 | Yes | 0.19 | |||||
39 | Xiamen Airlines No. 12 | Yes | 0.08 | |||||
40 | Xiamen Airlines No. 13 | Yes | 0.19 | |||||
41 | Xiamen Airlines No. 14 | Yes | 0.18 | |||||
42 | Xiamen Airlines No. 15 | Yes | 0.18 | |||||
43 | Xiamen Airlines No. 16 | Yes | 0.09 | |||||
44 | Xiamen Airlines No. 17 | Yes | 0.09 | |||||
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Total | / | / | 54.33 | |||||
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Note | During the reporting period, pursuant to the authorization of the 2021 annual general meeting, Xiamen Airlines adjusted the guarantee limits of Xiamen Airlines No. 1, Xiamen Airlines No.3 and Xiamen Airlines No.17 to US$66 million, US$9 million and US$9 million, respectively, within the authorized guarantee limit of RMB2,600 million or equivalent foreign currency. | |
As at the end of reporting period, the total guarantee amounts actually provided for the aforementioned 44 SPVs by the Company and its subsidiaries, i.e. Xiamen Airlines and Chongqing Airlines, are US$5.433 billion (equivalent to approximately RMB37.334 billion, calculated based on the Renminbi central parity rate of US$1=RMB6.8717 published by the People’s Bank of China on 31 March 2023), which are within the scope of the authorized guarantee amount approved by the general meeting of the Company. |
IV. | QUARTERLY FINANCIAL STATEMENTS |
(I) | Type of audit opinion |
☐ Applicable √ Not applicable
(II) | Financial statements |
Consolidated Balance Sheet
As at 31 March 2023
Prepared by: China Southern Airlines Company Limited
Unit: Million Currency: RMB Audit type: Unaudited
Items | 31 March 2023 | 31 December 2022 | ||||||
Current assets: |
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Cash at bank and on hand | 19,269 | 20,240 | ||||||
Settlement provisions | ||||||||
Loans to banks and other financial institutions | ||||||||
Held-for-trading financial assets | ||||||||
Derivative financial assets | 2 | 2 | ||||||
Bills receivable | ||||||||
Accounts receivable | 3,440 | 2,656 | ||||||
Receivables financing | ||||||||
Prepayments | 757 | 619 |
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Items | 31 March 2023 | 31 December 2022 | ||||||
Premiums receivable | ||||||||
Reinsurance accounts receivable | ||||||||
Reinsurance contract reserves receivable | ||||||||
Other receivables | 1,937 | 1,943 | ||||||
Including: Interest receivable | ||||||||
Dividends receivable | ||||||||
Financial assets purchased with agreement to resale | ||||||||
Inventories | 1,535 | 1,387 | ||||||
Contract assets | ||||||||
Assets held for sale | 26 | 26 | ||||||
Non-current assets due within one year | 147 | 152 | ||||||
Other current assets | 5,723 | 5,746 | ||||||
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Total current assets | 32,836 | 32,771 | ||||||
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Non-current assets: |
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Loans and advances | ||||||||
Debt investments | ||||||||
Other debt investments | ||||||||
Long-term receivables | 699 | 744 | ||||||
Long-term equity investments | 6,290 | 6,205 | ||||||
Other equity instrument investments | 659 | 659 | ||||||
Other non-current financial assets | 50 | 49 | ||||||
Investment properties | 372 | 341 | ||||||
Fixed assets | 90,939 | 90,810 | ||||||
Construction in progress | 33,750 | 33,322 | ||||||
Productive biological assets | ||||||||
Oil and gas assets | ||||||||
Right-of-use assets | 122,685 | 126,491 | ||||||
Intangible assets | 6,449 | 6,547 | ||||||
Development expenses | ||||||||
Goodwill |
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Items | 31 March 2023 | 31 December 2022 | ||||||
Long-term deferred expenses | 605 | 624 | ||||||
Deferred tax assets | 12,473 | 12,473 | ||||||
Other non-current assets | 953 | 965 | ||||||
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Total non-current assets | 275,924 | 279,230 | ||||||
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Total assets | 308,760 | 312,001 | ||||||
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Current liabilities: |
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Short-term borrowings | 57,193 | 53,674 | ||||||
Borrowings from the central bank | ||||||||
Loans from other banks | ||||||||
Held-for-trading financial liabilities | ||||||||
Derivative financial liabilities | 1,681 | 1,708 | ||||||
Bills payable | ||||||||
Accounts payable | 18,031 | 14,351 | ||||||
Advance payments received | 4,515 | 3,383 | ||||||
Contract liabilities | 1,548 | 1,496 | ||||||
Funds from selling out and repurchasing financial assets | ||||||||
Receipts of deposits and deposits from other banks | ||||||||
Accounts payable to brokerage customers | ||||||||
Proceeds from underwriting securities received on behalf of customers | ||||||||
Employee benefits payable | 3,467 | 4,564 | ||||||
Taxes payable | 500 | 640 | ||||||
Other payables | 8,531 | 7,939 | ||||||
Including: Interest payable | ||||||||
Dividends payable | ||||||||
Fees and commissions payable | ||||||||
Reinsurance accounts payable | ||||||||
Liabilities held for sale | ||||||||
Non-current liabilities due within one year | 32,985 | 41,167 | ||||||
Other current liabilities | 11,764 | 12,536 | ||||||
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Total current liabilities | 140,215 | 141,458 | ||||||
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Items | 31 March 2023 | 31 December 2022 | ||||||
Non-current liabilities: |
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Reserves for insurance contracts | ||||||||
Long-term borrowings | 18,070 | 15,316 | ||||||
Bonds payable | 19,194 | 19,128 | ||||||
Including: Preferred shares | ||||||||
Perpetual bonds | ||||||||
Lease liabilities | 69,387 | 72,963 | ||||||
Long-term payables | 255 | 289 | ||||||
Long-term salaries payable | ||||||||
Accrued liabilities | ||||||||
Deferred income | 855 | 760 | ||||||
Deferred tax liabilities | 24 | 24 | ||||||
Other non-current liabilities | 7,370 | 6,949 | ||||||
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Total non-current liabilities | 115,155 | 115,429 | ||||||
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Total liabilities | 255,370 | 256,887 | ||||||
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Owners’ equity (or shareholders’ equity): |
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Share capital (or issued capital) | 18,121 | 18,121 | ||||||
Other equity instruments | ||||||||
Including: Preferred shares | ||||||||
Perpetual bonds | ||||||||
Capital reserve | 52,775 | 52,775 | ||||||
Less: Inventory shares | ||||||||
Other comprehensive income | 261 | 261 | ||||||
Specific reserve | ||||||||
Surplus reserve | 2,579 | 2,579 | ||||||
General risk reserve | ||||||||
Retained earnings | -34,577 | -32,679 | ||||||
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Total equity attributable to owners of the parent company (or shareholders of the Company) | 39,159 | 41,057 | ||||||
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Items | 31 March 2023 | 31 December 2022 | ||||||
Non-controlling interests | 14,231 | 14,057 | ||||||
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Total owners’ equity (or shareholders’ equity) | 53,390 | 55,114 | ||||||
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Total liabilities and owners’ equity (or shareholders’ equity) | 308,760 | 312,001 | ||||||
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Responsible person of the Company: Ma Xu Lun | Responsible person of the accounting of the Company: Yao Yong | Responsible person of the accounting department: Mao Juan |
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Consolidated Income Statement
For the three months ended 31 March 2023
Prepared by: China Southern Airlines Company Limited
Unit: Million Currency: RMB Audit type: Unaudited
Items | Three months ended 31 March 2023 | Three months ended 31 March 2022 | ||||||
I. Total revenue | 34,055 | 21,471 | ||||||
Including: Operating revenue | 34,055 | 21,471 | ||||||
Interest income | ||||||||
Premiums earned | ||||||||
Fees and commissions income | ||||||||
II. Total operating costs | 36,569 | 28,055 | ||||||
Including: Cost of sales | 33,294 | 24,921 | ||||||
Interest expense | ||||||||
Fees and commissions expense | ||||||||
Surrender payment | ||||||||
Net payment for insurance claim | ||||||||
Net provisions for insurance liability | ||||||||
Expenditure for insurance policy dividend | ||||||||
Reinsurance costs | ||||||||
Taxes and surcharges | 143 | 75 | ||||||
Selling and administrative expenses | 1,329 | 1,045 | ||||||
General and administrative expenses | 872 | 760 | ||||||
Research and development expenses | 114 | 88 | ||||||
Financial expenses | 817 | 1,166 | ||||||
Including: Interest expenses | 1,482 | 1,516 | ||||||
Interest income | 121 | 118 |
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Items | Three months ended 31 March 2023 | Three months ended 31 March 2022 | ||||||
Add: Other income | 777 | 550 | ||||||
Investment income (“-” for losses) | 89 | 67 | ||||||
Including: Income from investment in associates and joint ventures | 89 | 67 | ||||||
Derecognition of income from financial assets at amortised cost | ||||||||
Exchange gain (“-” for losses) | ||||||||
Gain arising from net exposure hedge (“-” for losses) | ||||||||
Gains arising from changes in fair value (“-” for losses) | 21 | 24 | ||||||
Credit losses (“-” for losses) | ||||||||
Impairment losses on assets (“-” for losses) | ||||||||
Gains on disposal of assets (“-” for losses) | 160 | 36 | ||||||
III. Operating profit (“-” for losses) | -1,467 | -5,907 | ||||||
Add: Non-operating income | 85 | 61 | ||||||
Less: Non-operating expenses | 21 | 5 | ||||||
IV. Total profits (“-” for total losses) | -1,403 | -5,851 | ||||||
Less: Income tax expenses | 321 | -1,312 | ||||||
V. Net profit (“-” for net losses) | -1,724 | -4,539 | ||||||
(I) By continuity | ||||||||
1. Net profit from continuing operations (“-” for net losses) | -1,724 | -4,539 | ||||||
2. Net profit from discontinued operations (“-” for net losses) | ||||||||
(II) By ownership | ||||||||
1. Net profit attributable to shareholders of the Company (“-” for net losses) | -1,898 | -4,496 | ||||||
2. Non-controlling interests (“-” for net losses) | 174 | -43 |
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Items | Three months ended 31 March 2023 | Three months ended 31 March 2022 | ||||||
VI. Other comprehensive income, net of tax | ||||||||
(I) Other comprehensive income (net of tax) attributable to shareholders of the Company | ||||||||
1. Items that will not be reclassified to profit or loss | ||||||||
(1) Change in defined benefit plans arising from re-measurement | ||||||||
(2) Equity-accounted investees – share of other comprehensive income (non-recycling) | ||||||||
(3) Changes in fair value of other equity instruments | ||||||||
(4) Change in fair value of the Company’s own credit risk | ||||||||
2. Items that may be reclassified subsequently to profit or loss | ||||||||
(1) Equity-accounted investees-share of other comprehensive income (recycling) | ||||||||
(2) Change in fair value of other debt investments | ||||||||
(3) Financial assets reclassified into other comprehensive income | ||||||||
(4) Provision for credit impairment of other debt investments | ||||||||
(5) Cash flow hedge | ||||||||
(6) Translation differences arising on translation of foreign currency financial statements | ||||||||
(7) Others | ||||||||
(II) Other comprehensive income (net of tax) attributable to non-controlling interests |
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Items | Three months ended 31 March 2023 | Three months ended 31 March 2022 | ||||||
VII. Total comprehensive income | -1,724 | -4,539 | ||||||
(I) Attributable to shareholders of the Company | -1,898 | -4,496 | ||||||
(II) Attributable to non-controlling interests | 174 | -43 | ||||||
VIII. Earnings per share: | ||||||||
(I) Basic earnings per share (RMB/share) | -0.10 | -0.27 | ||||||
(II) Diluted earnings per share (RMB/share) | -0.10 | -0.27 |
Responsible person of the Company: Ma Xu Lun | Responsible person of the accounting of the Company: Yao Yong | Responsible person of the accounting department: Mao Juan |
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Consolidated Cash Flow Statement
For the three months ended 31 March 2023
Prepared by: China Southern Airlines Company Limited
Unit: Million Currency: RMB Audit type: Unaudited
Items | Three months ended 31 March 2023 | Three months ended 31 March 2022 | ||||||
I. Cash flows from operating activities: |
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Proceeds from sale of goods and rendering of services | 38,051 | 23,211 | ||||||
Net increase in customer and interbank deposits | ||||||||
Net increase in borrowings from the central bank | ||||||||
Net cash increase in placements from other financial institutions | ||||||||
Cash received from premiums under original insurance contracts | ||||||||
Net cash received from reinsurance business | ||||||||
Net increase in deposits of policy holders and investment funds | ||||||||
Cash received from interest, fees and commissions | ||||||||
Net increase in capital due to banks and other financial institutions | ||||||||
Net increase in cash received from repurchase business | ||||||||
Net cash received by agents for trading in securities | ||||||||
Refund of taxes | 39 | 16 | ||||||
Proceeds from other operating activities | 856 | 662 | ||||||
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Sub-total of cash inflows from operating activities | 38,946 | 23,889 | ||||||
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Payment for goods and services | 20,631 | 15,009 | ||||||
Net increase in customer loans and advances to customers | ||||||||
Net increase in deposits in the central bank and interbank deposits | ||||||||
Cash paid for compensation payments under original insurance contracts | ||||||||
Net increase in placements with banks and other financial institutions | ||||||||
Cash paid for interest, fees and commissions | ||||||||
Cash paid for insurance policy dividend | ||||||||
Payment to and for employees | 8,605 | 7,398 |
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Items | Three months ended 31 March 2023 | Three months ended 31 March 2022 | ||||||
Payment of various taxes | 737 | 1,257 | ||||||
Payment for other operating activities | 165 | 208 | ||||||
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Sub-total of cash outflows from operating activities | 30,138 | 23,872 | ||||||
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Net cash flows from operating activities | 8,808 | 17 | ||||||
II. Cash flows from investing activities: |
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Cash received from return of investments | ||||||||
Cash received on investment income | 4 | — | ||||||
Net proceeds from disposal of fixed assets, intangible assets and other long-term assets | 852 | 517 | ||||||
Net cash received from disposal of subsidiaries and other operating units | ||||||||
Proceeds from other investing activities | 131 | 90 | ||||||
|
|
|
| |||||
Sub-total of cash inflows from investing activities | 987 | 607 | ||||||
|
|
|
| |||||
Payment for acquisition of fixed assets, intangible assets and other long-term assets | 2,536 | 3,441 | ||||||
Cash paid for investment | ||||||||
Net increase in secured loans | ||||||||
Net cash paid for acquisition of subsidiaries and other operating units | ||||||||
Other cash paid relating to investing activities | ||||||||
|
|
|
| |||||
Sub-total of cash outflows from investing activities | 2,536 | 3,441 | ||||||
|
|
|
| |||||
Net cash flows from investing activities | -1,549 | -2,834 | ||||||
III. Cash flows from financing activities: |
| |||||||
Proceeds from investors | — | 20 | ||||||
Including: Investment received from non-controlling interests | — | 20 | ||||||
Proceeds from borrowings | 8,200 | 14,490 | ||||||
Proceeds from other financing activities | 4,200 | 14,400 | ||||||
|
|
|
| |||||
Sub-total of cash inflows from financing activities | 12,400 | 28,910 | ||||||
|
|
|
| |||||
Repayments of borrowings | 19,141 | 26,262 | ||||||
Payment for dividends, profit distributions or interest | 1,425 | 1,567 |
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Items | Three months ended 31 March 2023 | Three months ended 31 March 2022 | ||||||
Including: Dividends and profits paid to non-controlling shareholders of subsidiaries | ||||||||
Payment for other financing activities | 10 | — | ||||||
|
|
|
| |||||
Sub-total of cash outflows from financing activities | 20,576 | 27,829 | ||||||
|
|
|
| |||||
Net cash flows from financing activities | -8,176 | 1,081 | ||||||
IV. Effect of changes in exchange rate on cash and cash equivalents | -24 | — | ||||||
V. Net increase in cash and cash equivalents | -941 | -1,736 | ||||||
Add: Cash and cash equivalents at the beginning of the period | 19,889 | 21,456 | ||||||
VI. Cash and cash equivalents at the end of the period | 18,948 | 19,720 |
Responsible person of the Company: Ma Xu Lun | Responsible person of the accounting of the Company: Yao Yong | Responsible person of the accounting department: Mao Juan |
(III) | Adjustment to relevant items of the financial statements at the beginning of the first adoption year due to the first adoption of new accounting standard or interpretation of accounting standard in 2023 |
☐ Applicable √ Not applicable
By order of the Board |
China Southern Airlines Company Limited Chen Wei Hua and Liu Wei |
Joint Company Secretaries |
Guangzhou, the People’s Republic of China
28 April 2023
As at the date of this announcement, the Directors include Ma Xu Lun, Han Wen Sheng and Luo Lai Jun as executive Directors; and Liu Chang Le, Gu Hui Zhong, Guo Wei and Cai Hong Ping as independent non-executive Directors.
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