CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME
For the years ended December 31, 2014, 2013 and 2012
(Amounts in millions except for per share data)
| |
|
|
|
2014 |
|
|
2013 |
|
|
2012 |
|
| |
|
Notes |
|
RMB million |
|
|
RMB million |
|
|
RMB million |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Revenues |
|
5 |
|
|
90,185 |
|
|
|
88,245 |
|
|
|
85,253 |
|
| Other operating income |
|
6 |
|
|
3,685 |
|
|
|
2,725 |
|
|
|
1,833 |
|
| Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Aircraft fuel |
|
|
|
|
(30,238 |
) |
|
|
(30,681 |
) |
|
|
(29,872 |
) |
| Gain on fair value movements of derivative financial instruments |
|
8 |
|
|
11 |
|
|
|
18 |
|
|
|
25 |
|
| Take-off and landing charges |
|
|
|
|
(9,440 |
) |
|
|
(9,190 |
) |
|
|
(9,066 |
) |
| Depreciation and amortization |
|
|
|
|
(9,183 |
) |
|
|
(8,226 |
) |
|
|
(7,557 |
) |
| Wages, salaries and benefits |
|
9 |
|
|
(11,270 |
) |
|
|
(13,454 |
) |
|
|
(12,303 |
) |
| Aircraft maintenance |
|
|
|
|
(4,453 |
) |
|
|
(4,690 |
) |
|
|
(4,433 |
) |
| Impairment (charge)/reversal |
|
10 |
|
|
(12 |
) |
|
|
(186 |
) |
|
|
13 |
|
| Food and beverages |
|
|
|
|
(2,364 |
) |
|
|
(2,268 |
) |
|
|
(2,031 |
) |
| Aircraft operating lease rentals |
|
|
|
|
(4,502 |
) |
|
|
(4,605 |
) |
|
|
(4,438 |
) |
| Other operating lease rentals |
|
|
|
|
(637 |
) |
|
|
(679 |
) |
|
|
(609 |
) |
| Selling and marketing expenses |
|
|
|
|
(4,120 |
) |
|
|
(4,139 |
) |
|
|
(3,727 |
) |
| Civil aviation development fund |
|
|
|
|
(1,656 |
) |
|
|
(1,566 |
) |
|
|
(1,414 |
) |
| Ground services and other expenses |
|
|
|
|
(4,998 |
) |
|
|
(5,105 |
) |
|
|
(3,305 |
) |
| Indirect operating expenses |
|
|
|
|
(4,950 |
) |
|
|
(4,623 |
) |
|
|
(4,017 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total operating expenses |
|
|
|
|
(87,812 |
) |
|
|
(89,394 |
) |
|
|
(82,734 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating profit |
|
11 |
|
|
6,058 |
|
|
|
1,576 |
|
|
|
4,352 |
|
| Share of results of associates |
|
22 |
|
|
91 |
|
|
|
38 |
|
|
|
103 |
|
| Share of results of joint ventures |
|
23 |
|
|
36 |
|
|
|
27 |
|
|
|
30 |
|
| Finance income |
|
12 |
|
|
88 |
|
|
|
2,125 |
|
|
|
349 |
|
| Finance costs |
|
13 |
|
|
(2,160 |
) |
|
|
(1,549 |
) |
|
|
(1,697 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Profit before income tax |
|
|
|
|
4,113 |
|
|
|
2,217 |
|
|
|
3,137 |
|
| Income tax expense |
|
14 |
|
|
(573 |
) |
|
|
(124 |
) |
|
|
(208 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Profit for the year |
|
|
|
|
3,540 |
|
|
|
2,093 |
|
|
|
2,929 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other comprehensive income for the year |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other comprehensive income/(loss) to be reclassified to profit or loss in subsequent periods: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash flow hedges, net of tax |
|
39 |
|
|
(11 |
) |
|
|
246 |
|
|
|
(9 |
) |
| Fair value movements of available-for-sale financial assets, net of tax |
|
|
|
|
13 |
|
|
|
157 |
|
|
|
- |
|
| Fair value movements of available-for-sale financial assets held by an associate, net of tax |
|
22 |
|
|
(1 |
) |
|
|
(3 |
) |
|
|
2 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net other comprehensive income/(loss) to be reclassified to profit or loss in subsequent periods |
|
|
|
|
1 |
|
|
|
400 |
|
|
|
(7 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other comprehensive income/(loss) not to be reclassified to profit or loss in subsequent periods: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Actuarial (losses)/gains on the post-retirement benefit obligations, net of tax |
|
|
|
|
(333 |
) |
|
|
467 |
|
|
|
139 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net other comprehensive income/(loss) not to be reclassified to profit or loss in subsequent periods |
|
|
|
|
(333 |
) |
|
|
467 |
|
|
|
139 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other comprehensive income/(loss), net of tax |
|
|
|
|
(332 |
) |
|
|
867 |
|
|
|
132 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total comprehensive income for the year |
|
|
|
|
3,208 |
|
|
|
2,960 |
|
|
|
3,061 |
|
CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME (CONTINUED)
For the year ended December 31, 2014, 2013 and 2012
(Amounts in millions except for per share data)
| |
|
|
|
2014 |
|
|
2013 |
|
|
2012 |
|
| |
|
Notes |
|
RMB million |
|
|
RMB million |
|
|
RMB million |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Profit/(loss) attributable to: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Equity shareholders of the Company |
|
|
|
|
3,410 |
|
|
|
2,373 |
|
|
|
3,072 |
|
| Non-controlling interests |
|
|
|
|
130 |
|
|
|
(280 |
) |
|
|
(143 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Profit for the year |
|
|
|
|
3,540 |
|
|
|
2,093 |
|
|
|
2,929 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total comprehensive income/(loss) attributable to: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Equity shareholders of the Company |
|
|
|
|
3,071 |
|
|
|
3,180 |
|
|
|
3,221 |
|
| Non-controlling interests |
|
|
|
|
137 |
|
|
|
(220 |
) |
|
|
(160 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total comprehensive income for the year |
|
|
|
|
3,208 |
|
|
|
2,960 |
|
|
|
3,061 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Earnings per share attributable to the equity shareholders of the Company during the year |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| – Basic and diluted (RMB) |
|
17 |
|
|
0.27 |
|
|
|
0.20 |
|
|
|
0.27 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Dividends |
|
15 |
|
|
- |
|
|
|
- |
|
|
|
- |
|
Management Discussion and Analysis
2014 Compared to 2013
Revenues
Our revenues increased by 2.2%, from RMB88,245 million in 2013 to RMB90,185 million in 2014. Revenues increased in our passenger business operations, primarily due to increased passenger demand, aircraft utilization rates and increase in scheduled flights, which was partially offset by decreased revenue in our cargo and mail business operations, primarily due to a general slowdown of the global economy that affected cargo demand and, consequently, our cargo volumes.
In 2014, we transported a total of 83.8 million passengers, representing an increase of 6.0%, from 79.1 million passengers in 2013. Our total passenger traffic (as measured in RPKs) increased by 6.1%, from 120,461 million passenger-kilometers in 2013 to 127,750 million passenger-kilometers in 2014 and our total cargo and mail traffic (as measured in RFTKs) decreased by 1.1%, from 4,857 million freight tonne-kilometers in 2013 to 4,802 million freight tonne-kilometers in 2014. Our average yield for our passenger operations maintained stable at RMB0.61 per passenger-kilometer in 2013 and 2014.
Our average yield for our cargo and mail operations decreased by 1.3%, from RMB1.57 per tonne-kilometer in 2013 to RMB1.55 per tonne-kilometer in 2014, primarily due to the general slowdown of the global economy that affected cargo demand and, consequently, our cargo volumes.
Profit Attributable to the Equity Shareholders of the Company
As a result of the foregoing, the net profit attributable to the equity shareholders of the Company increased to RMB3,410 million in 2014, or 43.7%, as compared to a net profit of RMB2,373 million in 2013. The increase is mainly due to continuous improvement of our operating abilities and the decrease of jet fuel prices, as well as adjustments to the retirement benefit policies of our employees
