China Southern Airlines (NYSE:ZNH)

Generally, the Group meets its working capital and capital expenditure requirements through cash from its operations, the proceeds of certain long-term and short-term bank loans, capital lease financing and rebates available under certain of the Group’s aircraft leases. In addition, the Company received approximately RMB10,572 million proceeds from its non-public offerings of 1,501,500,000 A shares to CSAHC and certain third party investors in October 2010, and 312,500,000 H shares to Nan Lung in November 2010.

In view of the unutilized bank facilities of RMB107,529 million, the Group expects that it will have sufficient funding sources to meet its cash requirements in the foreseeable future.