China Southern Airlines Company (OTC:CHKIF)

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Comments & Business Outlook

(Prepared in accordance with International Financial Reporting Standards)

(Expressed in Renminbi)

	Note	2013			2012			2011
		RMB million			RMB million			RMB million
Operating revenue
Traffic revenue	5		94,684			96,100			87,252
Other operating revenue	7		3,863			3,414			3,143

Total operating revenue			98,547			99,514			90,395

Operating expenses
Flight operations	8		54,010			54,690			48,344
Maintenance	9		7,805			7,971			7,531
Aircraft and traffic servicing expenses	10		15,091			14,072			12,337
Promotion and selling expenses	11		7,754			7,134			6,568
General and administrative expenses	12		2,470			2,425			2,807
Depreciation and amortization	13		9,347			8,264			7,689
Impairment on property, plant and equipment	22		536			-			584
Others			1,267			1,321			1,203

Total operating expenses			98,280			95,877			87,063

Other net income	15		1,243			1,462			1,021

Operating profit			1,510			5,099			4,353
Interest income			307			235			179
Interest expense	16		(1,651	)		(1,376	)		(1,067	)
Share of associates’ results	24		294			317			456
Share of joint ventures’ results	25		96			121			125
Exchange gain, net	34(e)		2,903			267			2,755
Other non-operating income	17		25			75			129

Profit before income tax			3,484			4,738			6,930
Income tax	19		(734	)		(954	)		(840	)

Profit for the year			2,750			3,784			6,090

	Note	2013		2012		2011
		RMB million		RMB million		RMB million
Profit attributable to:
Equity shareholders of the Company			1,986		2,619		5,110
Non-controlling interests			764		1,165		980

Profit for the year			2,750		3,784		6,090

Earnings per share attributable to equity shareholders of the Company
Basic and diluted	20	RMB	0.20	RMB	0.27	RMB	0.52