REG - Air China Ld - INTERIM REPORT 2025
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RNS Number : 8795Z Air China Ld 18 September 2025
中國國際航空股份有限公司 (short name: 中國國航) (English name:
Air China Limited, short name: Air China) is the only national flag carrier of
China.
As the old saying goes, "Phoenix, a bird symbolizing benevolence" and "The
whole world will be at peace once a phoenix reveals itself". The corporate
logo of Air China is composed of an artistic phoenix figure, the Chinese
characters of "中國國際航空公司" in calligraphy written by Deng
Xiaoping, by whom the China's reform and opening-up blueprint was designed,
and the characters of "AIR CHINA" in English. Signifying good auspices in the
ancient Chinese legends, phoenix is the king of all birds. It "flies from the
eastern Happy Land and travels over mountains and seas and bestows luck and
happiness upon all parts of the world". Air China advocates the core spirit of
phoenix which is to "serve the world, to lead and move forward to higher
goals". By virtue of the immense historical heritage, Air China strives to
create perfect travel experience and keep passengers safe by upholding the
spirit of phoenix of being a practitioner, promoter and leader for the
development of the Chinese civil aviation industry. The Company is also
committed to leading the industrial development by establishing itself as a
national brand, at the same time pursuing outstanding performance through
innovation and excelling efforts.
Air China was listed on The Stock Exchange of Hong Kong Limited (stock code:
00753) and the London Stock Exchange (stock code: AIRC) on 15 December 2004,
and was listed on the Shanghai Stock Exchange (stock code: 601111) on 18
August 2006.
Headquartered in Beijing, Air China has set up branches in Southwest China,
Zhejiang, Chongqing, Tianjin, Shanghai, Hubei, Xinjiang, Guangdong, Guizhou,
Tibet and Wenzhou. As at the end of the Reporting Period, the major
subsidiaries of Air China are Shenzhen Airlines Company Limited (including
Kunming Airlines Company Limited), Shandong Aviation Group Company Limited
(including Shandong Airlines Co., Ltd.), Air Macau Company Limited, Beijing
Airlines Company Limited, Dalian Airlines Company Limited, Air China Inner
Mongolia Co., Ltd., Aircraft Maintenance and Engineering Corporation, Air
China Import and Export Co., Ltd., Chengdu Falcon Aircraft Engineering Service
Co., Ltd., Air China Shantou Industrial Development Company; its joint
ventures mainly include Sichuan Services Aero-Engine Maintenance Co., Ltd,
Beijing Aero-Engine Services Co., Ltd. and GA Innovation China Co., Ltd; and
its associates mainly include Cathay Pacific Airways Limited and Tibet
Airlines Co., Ltd.
With the goal of becoming "the world's leading airline", Air China remains
committed to the mission of "put safety first, serve passengers with
credibility, convenience, comfort and choice, maintain stable development,
help employees achieve success and fulfill corporate responsibilities",
advocates the values of "people-oriented, accountable, excelling efforts and
enjoyable flights" and positions the brand as "professional and reliable with
both international quality and Chinese temperament".
TABLE OF CONTENTS
Corporate Information 2
Summary of Financial Information 3
Summary of Operating Data 4
Development of Fleet 6
Business Overview 7
Management Discussion and Analysis 14
Corporate Governance and Other Information 22
Independent Review Report 30
Condensed Consolidated Financial Statements
- Consolidated Statement of Profit or Loss 31
- Consolidated Statement of Profit or Loss and 32
Other Comprehensive Income
- Consolidated Statement of Financial Position 33
- Consolidated Statement of Changes in Equity 36
- Condensed Consolidated Statement of Cash Flows 37
- Notes to the Unaudited Interim Financial Report 38
Glossary of Technical Terms 62
Definitions 63
Corporate Information
REGISTERED CHINESE NAME:
中國國際航空股份有限公司
ENGLISH NAME:
Air China Limited
REGISTERED OFFICE:
1st Floor-9th Floor 101
Building 1
30 Tianzhu Road
Shunyi District
Beijing, the PRC
PRINCIPAL PLACE OF BUSINESS IN HONG KONG:
5th Floor
CNAC House
12 Tung Fai Road
Hong Kong International Airport
Hong Kong
WEBSITE:
www.airchina.com.cn
DIRECTORS:(1)
Mr. Ma Chongxian
Mr. Wang Mingyuan
Mr. Cui Xiaofeng
Mr. Patrick Healy
Mr. Xiao Peng
Mr. Xu Niansha*
Mr. He Yun*
Ms. Winnie Tam Wan-chi*
Mr. Gao Chunlei*
LEGAL REPRESENTATIVE OF THE COMPANY:
Mr. Ma Chongxian
COMPANY SECRETARY:
Mr. Xiao Feng
AUTHORISED REPRESENTATIVES:
Mr. Ma Chongxian
Mr. Xiao Feng
LEGAL ADVISERS TO THE COMPANY:
DeHeng Law Offices
(as to domestic laws)
Jingtian & Gongcheng LLP
(as to overseas laws)
INTERNATIONAL AUDITOR:
KPMG
Public Interest Entity Auditors registered in accordance with the Accounting
and Financial Reporting Council Ordinance
H SHARE REGISTRAR AND TRANSFER OFFICE:
Computershare Hong Kong Investor Services Limited
Rooms 1712-1716, 17th Floor, Hopewell Centre
183 Queen's Road East
Wanchai
Hong Kong
LISTING VENUES:
Hong Kong, London and Shanghai
* Independent Non-executive Director
1 For details of changes in Directors of the Company
during the Reporting Period, please refer to page 22 of this report. This page
sets out the list of Directors of the Company as of the date of this interim
report (i.e. 28 August 2025).
Summary of Financial Information
(RMB'000) Six months ended Six months ended
30 June 2025
30 June 2024
(Unaudited) (Unaudited)
Revenue 80,757,434 79,520,332
Loss from operations (1,696,430) (1,081,972)
Loss before taxation (2,787,902) (3,286,075)
Loss for the period (2,710,105) (3,538,611)
Loss attributable to non-controlling interests (905,285) (759,658)
Loss attributable to equity shareholders of the Company (1,804,820) (2,778,953)
EBITDA((1)) 13,141,208 12,943,313
EBITDAR((2)) 13,849,545 13,551,345
Loss per share attributable to equity shareholders of the Company (RMB) (0.11) (0.18)
Return on equity attributable to equity shareholders (%) (4.23) (7.60)
(1) EBITDA represents earnings before finance income and finance
costs, net exchange gains/losses, income tax, share of results of associates
and joint ventures, depreciation and amortisation as computed under IFRS
Accounting Standards.
(2) EBITDAR represents EBITDA before deducting aircraft and
engine lease expenses as well as other lease expenses.
(RMB'000) 30 June 2025 31 December 2024
(Unaudited) (Audited)
Total assets 347,539,122 345,750,173
Total liabilities 309,309,125 304,824,203
Non-controlling interests (4,393,572) (4,202,202)
Equity attributable to equity shareholders of the Company 42,623,569 45,128,172
Equity attributable to equity shareholders of the Company per share (RMB) 2.44 2.71
Summary of Operating Data
The following is the operating data summary of the Company, Shenzhen Airlines
(including Kunming Airlines), Shandong Airlines, Beijing Airlines, Dalian
Airlines, Air China Inner Mongolia and Air Macau.
January to January to Increase/(decrease)
June 2025
June 2024
Capacity
ASK (million) 177,576.14 171,790.89 3.37%
International 51,445.77 44,082.60 16.70%
Mainland China 121,132.50 122,675.40 (1.26%)
Hong Kong SAR, Macau SAR and Taiwan, China 4,997.87 5,032.90 (0.70%)
AFTK (million) 6,425.74 6,122.03 4.96%
International 3,055.74 2,577.25 18.57%
Mainland China 3,246.51 3,409.83 (4.79%)
Hong Kong SAR, Macau SAR and Taiwan, China 123.50 134.96 (8.49%)
ATK (million) 22,428.25 21,606.69 3.80%
Traffic
RPK (million) 143,336.58 136,213.57 5.23%
International 39,337.74 33,625.02 16.99%
Mainland China 100,349.17 98,966.23 1.40%
Hong Kong SAR, Macau SAR and Taiwan, China 3,649.66 3,622.31 0.75%
RFTK (million) 2,408.59 2,237.13 7.66%
International 1,560.66 1,409.88 10.69%
Mainland China 817.46 795.51 2.76%
Hong Kong SAR, Macau SAR and Taiwan, China 30.47 31.74 (4.01%)
Passengers carried (thousand) 77,114.33 74,959.47 2.87%
International 8,939.31 7,535.97 18.62%
Mainland China 65,835.77 65,161.14 1.04%
Hong Kong SAR, Macau SAR and Taiwan, China 2,339.26 2,262.37 3.40%
Cargo and mail carried (tonnes) 735,334.14 701,598.29 4.81%
Kilometres flown (million) 922.72 896.88 2.88%
Block hours (thousand) 1,465.36 1,438.31 1.88%
Number of flights 504,285 498,613 1.14%
International 56,194 47,201 19.05%
Mainland China 430,131 434,608 (1.03%)
Hong Kong SAR, Macau SAR and Taiwan, China 17,960 16,804 6.88%
RTK (million) 15,050.36 14,229.30 5.77%
Load factor
Passenger load factor (RPK/ASK) 80.72% 79.29% 1.43 pp
International 76.46% 76.28% 0.19 pp
Mainland China 82.84% 80.67% 2.17 pp
Hong Kong SAR, Macau SAR and Taiwan, China 73.02% 71.97% 1.05 pp
Cargo and mail load factor (RFTK/AFTK) 37.48% 36.54% 0.94 pp
International 51.07% 54.70% (3.63 pp)
Mainland China 25.18% 23.33% 1.85 pp
Hong Kong SAR, Macau SAR and Taiwan, China 24.67% 23.52% 1.15 pp
Overall load factor (RTK/ATK) 67.10% 65.86% 1.25 pp
Utilisation
Daily utilisation of aircraft (block hours per day per aircraft) 8.76 8.79 (0.03 hours)
Yield
Yield per RPK (RMB) 0.5107 0.5369 (4.88%)
International 0.4889 0.4927 (0.77%)
Mainland China 0.5134 0.5475 (6.23%)
Hong Kong SAR, Macau SAR and Taiwan, China 0.6683 0.6578 1.60%
Yield per RFTK (RMB) 1.4853 1.4878 (0.17%)
International 1.7344 1.7792 (2.52%)
Mainland China 0.9419 0.9035 4.25%
Hong Kong SAR, Macau SAR and Taiwan, China 3.3024 3.1906 3.50%
Unit cost
Operating expenses per ASK (RMB) 0.4791 0.4881 (1.84%)
Operating expenses per ATK (RMB) 3.7930 3.8809 (2.26%)
Development of Fleet
During the first half of 2025, the Group introduced a total of nine aircraft,
including one A320 series aircraft, five B737 series aircraft, one C919
aircraft and two C909 aircraft, and phased out a total of five aircraft,
including one A330 series aircraft, three A320 series aircraft and one
business jet. As at the end of the Reporting Period, the Group had a total of
934 aircraft with an average age of 10.28 years, of which the Company operated
a fleet of 510 aircraft in total, with an average age of 9.92 years. During
the Reporting Period, the Company introduced eight aircraft and phased out two
aircraft.
Details of the fleet of the Group are set out in the table below:
30 June 2025
Sub-total Self-owned Finance leases Operating leases Average age (year)
Airbus 430 196 115 119 10.14
A320 347 165 90 92 10.35
A330 53 21 5 27 12.18
A350 30 10 20 - 4.13
Boeing 462 191 97 174 11.11
B737 410 156 88 166 11.08
B747 10 8 2 - 15.97
B777 28 17 5 6 11.21
B787 14 10 2 2 8.36
COMAC 39 27 12 - 2.02
C909 35 23 12 - 2.19
C919 4 4 - - 0.52
Business jets 3 1 - 2 9.31
Total 934 415 224 295 10.28
Introduction Plan Phase-out Plan
2025 2026 2027 2025 2026 2027
Airbus 22 27 24 13 13 3
A320 22 27 24 9 13 3
A330 - - - 4 - -
Boeing 13 2 21 5 1 1
B737 13 - 12 4 1 1
B747 - - - 1 - -
B787 - 2 9 - - -
COMAC 12 10 10 - - -
C909 2 - - - - -
C919 10 10 10 - - -
Total 47 39 55 18 14 4
Note: Please refer to the actual operation for the introduction and
phase-out of the Group's fleet in the future.
Business Overview
Safe Operations
Comprehensively implementing the holistic approach to national security, the
Group reinforced safety accountability with resolute political commitment,
unwaveringly upholding the principle of "safety first". The annual key safety
tasks were rigorously advanced, with the Group's leadership team conducting
safety supervision and field research at seven subsidiaries and branches.
Steady progress was made in the three-year action plan for fundamental
improvement in workplace safety. This included formulating implementation
plans for safety production, comprehensively strengthening process management,
and continuously enhancing safety operation systems across key areas such as
safety management, flight training, operational management, aircraft
maintenance, risk identification and hidden hazard identification and
mitigation, dangerous goods air transportation, aviation security as well as
fire and construction safety. Focusing on complex operational environments and
critical production processes, the Group applied to "human error, equipment
failure, environmental factors and deficiencies management
(人、機、環、管)" framework to rigorously enforce risk controls. During
the Reporting Period, the Group achieved 1.465 million safe flight hours while
successfully executing multiple charter flights and special missions including
repatriation of overseas cultural relics, earthquake relief and rescue in
Myanmar and Tibet and emergency evacuations from Iran, all demonstrating the
Group's strong political accountability and commitment to social
responsibilities.
Operational Performance
The Group made solid strides in enhancing quality and efficiency, steadfastly
anchoring its efforts to achieve the annual business objectives. The Group
adhered to implementing the "Four Maximizations" production organization
principle to increase the scale of effective input. The hub network strategy
was further advanced, with continuous optimization of the flight route network
and meticulous development of domestic express routes to strengthen
competitive edges. The Group steadily pushed forward the launch of new
international routes and resumption of suspended ones, prioritizing market
expansion along the "Belt and Road" initiative. The Group continuously
enhanced its product marketing and innovation capabilities. Product design was
continually refined to cater to passengers' differentiated needs, with
innovative upgrades to distinctive tailored offerings such as the "Phoenix
Junior Program
(新生旅客計劃)", the "Silver Age Plan (活力銀齡計劃)" and the
"Student Zone (學生專區)". The Group also deepened customer orientation by
implementing a dedicated client manager system, elevating the experience of
core customer groups and bolstering the Company's reputation. The Group
continued to reinforce synergistic development to extend the breadth and depth
of the route network, and conducted joint thematic marketing initiatives to
sharpen the core competitiveness. Cost control was advanced, with focused
efforts on unlocking potential savings and enhancing overall profitability.
The Group continuously strengthened the financial coordination, enhanced debt
risk management, improved capital utilization efficiency while ensuring fund
security to reduce financial costs.
Quality Service
Guided by the "people-centered" development philosophy and anchored to the
goal of building a world-class aviation transportation group, the Group made
steady progress in its annual priority tasks of creating "Four First-class
(四個一流)" services. By continuously advancing the development of the
service quality management system, enhancing service standards, deepening
product and service innovation and focusing on driving digital upgrades across
the entire service process, the Group promoted its high-quality development
through service excellence.
Adhering to a problem-oriented approach, the Group revised its key service
standards such as service compensation policies, optimized satisfaction survey
analysis and established coordinated ticketing policy and payment monitoring
mechanisms to precisely improve passenger experiences. Branded service
products were further developed, including the launch of the new "Zichen
(紫宸)" premium lounge in Urumqi and the addition of "Hangzhou-Chengdu"
express route and "Chongqing-Shenzhen" city express route, enriching the
express route portfolio. To enhance passenger convenience, the Group enriched
in-app payment methods and introduced multiple features such as passport chip
scanning and cross-airline special service bookings, extended intercity
air-rail intermodal service coverage to 73 cities and expanded domestic
through-check-in flight services to 21 locations. The Group accelerated the
development and rollout of service system platforms, with the officially full
operation of an end-to-end passenger notification system. In-flight meal
reservation service was extended to all domestic flights, providing superior
service to passengers. Intelligent customer service provides passengers with
inquiry and response services including flight status queries and pre-flight
instructions. The passenger service compensation system, service knowledge
database and other service production support systems have been upgraded,
further enhancing digital capabilities in both service and management.
Digital Transformation
The Group accelerated the digital and intelligent transformation across all
business domains. In terms of safety operations, the global ground flight
support platform achieved full coverage across all branches, enabling flight
monitoring visualization, intelligent shift scheduling and mobile operations
for frontline staff, significantly enhancing ground support capabilities.
Supported by the intelligent route engineer platform, engineers were empowered
to formulate fault response plans, enhance maintenance efficiency, and boost
safety management capabilities through technological innovation. In terms of
marketing and services, all business model phase II projects were launched,
delivering enhanced precision marketing and diversified product management,
enabling rapid and flexible configuration of air tickets and products and
expanded sales channels. The Group actively promoted artificial intelligence
(AI) adoption, developing key applications including intelligent customer
service and smart maintenance. In-flight meal reservation services achieved
full coverage across all domestic flights, with intelligent customer service
providing passengers with smart voice-enabled Q&A support. The centralized
departure control business attained complete implementation at all Air China's
flight destinations. Service production support systems, including the
passenger service compensation systems, service knowledge database and others,
underwent upgrades and iterations. The Group also established a comprehensive
AI+ platform to enable centralized and intensive sharing of AI resources
across the organization, providing foundational support for the implementation
of AI applications throughout all operational domains.
Brand Value
Aligned with the goal of building a "world-renowned brand" as part of its
world-class enterprise development strategy, the Group continuously
strengthened its integrated online-offline and air-ground synergistic
three-dimensional communication system, focusing on creating a globally
leading brand. Participating in the 20th Western China International Fair,
under the theme "Harnessing Western Momentum for Global Connections
(乘西部之風 赴世界之約)", the Group showcased its role as the
national flag carrier in serving national strategies and empowering regional
economies with solid results. The Group actively carried out its overseas
brand promotion, accelerating the establishment of a brand management and
international communication framework. At the 2025 Brand Global Communication
Conference (2025品牌全球傳播力大會), Air China ranked 26th on the
"2025 China Brands Global Influence Index
(2025中國品牌全球傳播力總榜)", as the only airline included in the
ranking. According to the evaluation released by World Brand Lab, Air China
ranked 25th in the "China's Top 500 Most Valuable Brands" for 2025 with a
brand value of RMB275.576 billion, maintaining its leading position in China's
aviation service industry.
Review of Enhancing Quality And Efficiency to Boosting Returns
During the Reporting Period, the Group expedited the improvement of the
quality and efficiency of its core business operations, continued to enhance
profitability, and implemented comprehensive and systematic measures to
elevate quality and efficiency, resulting in a notable improvement in
operating performance. During the Reporting Period, the Group's cumulative
available seat kilometers (ASK) reached 177.576 billion, representing a
year-on-year increase of 3.37%. The Group transported 77.114 million
passengers, representing a year-on-year increase of 2.87%. During the
Reporting Period, the Group recorded revenue of RMB80,757 million,
representing a year-on-year increase of RMB1,237 million; and recorded a net
loss attributable to equity shareholders of the listed company amounted to
RMB1,805 million, representing a reduction in loss of RMB974 million.
Continuously improving the efficiency of core resource utilization and
accelerating the expansion of routes under the "Belt and Road" initiative, Air
China has now reached 40 destinations in "Belt and Road" countries. The Group
enhanced its precision control capabilities and adopted multiple measures to
stabilize revenue. It further strengthened the top-level design for strategic
synergy, enhanced coordination within the Air China family airlines in areas
such as capacity allocation and yield management, as well as marketing
products and services, thereby coordinating the regional resources to foster
economies of scale. Through the implementation of "intensive, coordinated and
refined" management, costs in major areas such as jet fuel, takeoffs and
landings, in-flight catering and aircraft maintenance were reduced, while
refined cost control were continuously deepened across the entire operational
chain.
Adhering to standardized operation, the Group continuously improved the
corporate governance mechanisms. By giving full play to the leadership role of
the Party Committee, the Group strictly implemented the requirement that
material operational and management matters must undergo preliminary research
and discussion by the Party Committee. As of the end of the Reporting Period,
the Board held six meetings, at which 34 resolutions were considered and
approved. Among these, the Party Committee made pre-decisions on 2 proposals,
and conducted preliminary research and discussion on 13 major resolutions; and
the Board received 11 special reports. In February 2025, the Board re-election
was completed, and the seventh session of the Board was established with
adjustments made to the composition of its various special committees and
joint working groups. The Company implemented measures to align with the
provisions of newly amended Company Law and the latest regulatory
requirements, systematically amended the Articles of Association, the Rules
and Procedures of Shareholders' Meetings, the Rules and Procedures of Meetings
of the Board and the Working Rules of the Nomination Committee, thereby
supporting the establishment of a governance-compliant Board. All information
related to the Company's production and operations that could have a material
impact on share price was disclosed in a truthful, accurate, complete and
timely manner, ensuring that all shareholders have equal access to the
information of the Company and safeguarding the rights and interests of
investors. During the Reporting Period, the Company completed the preparation
and disclosure of periodic reports, ad hoc announcements and circulars of high
quality. The Company's information disclosure work for the year 2023-2024 was
rated as Grade A by the Shanghai Stock Exchange, indicating excellence in
information disclosure.
Efforts in investor relations were actively promoted to establish bridges and
communication channels with the capital market. The Company organized and held
the 2024 online results briefings to fully address market concerns. By
conducting the 2024 results roadshow in Hong Kong and Shanghai and visiting 12
major institutional investors, the Company provided thorough and in-depth
responses to various questions of concern of investors to boost investor
confidence. The Company actively participated in institutional strategy
conferences and organized or took part in nearly 20 investment conferences or
telephone research meetings during the Reporting Period. Using platforms such
as the SSE E-Interactive and the investor relations section of the Company's
official website, the Company promptly updated various types of corporate
information and actively responded to investor inquiries, placing strong
emphasis on the needs of small- and medium-sized investors. Additionally, the
Company scientifically managed its market value and formulated the Work Plan
on the Market Value Management of Air China Limited
(《中國國際航空股份有限公司市值管理工作方案》) to
promote high-quality development of the Company.
The Company strengthened responsibilities of the key minorities to promote the
robust development of the Company. The Company's controlling shareholders,
CNAHC and CNACG, maintain a long-term positive outlook on the China's aviation
industry. Based on their confidence in the future prospects of the Company's
development and recognition of its intrinsic investment value, they have
committed not to reduce their holdings of the Company's tradable shares that
are not subject to selling restrictions in any manner for a period of 18
months commencing from 8 April 2025.
MAJOR SUBSIDIARIES AND ASSOCIATES AND THEIR OPERATING RESULTS
Note: As at the end of the Reporting Period, CNACG is a wholly-owned
subsidiary of CNAHC. Accordingly, CNAHC is directly and indirectly interested
in 53.71% of the shares of the Company.
During the Reporting Period, the operating results of the major subsidiaries
and associates of the Company affecting more than 10% of the Company's net
profit were as follows:
Shenzhen Airlines Shandong Aviation Group Corporation Beijing Airlines Dalian Airlines Air China Inner Mongolia Air Macau Ameco CNAF Cathay Pacific
Company Type Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Associate
Year of establishment 1992 1995 2011 2011 2013 1994 1989 1994 1946
Place of domicile Shenzhen Shandong Beijing Dalian Inner Mongolia Macau Beijing Beijing Hong Kong
Principal business Air passenger and air cargo services Air passenger and air cargo services Business charter and public air passenger and air cargo services Air passenger and air cargo services Air passenger and air cargo services Air passenger and air cargo services Repair and overhaul of aircraft, engines and components Provision of financial services to CNAHC Group and the Group Air passenger and air cargo services
Registered capital RMB5,360,000,000 RMB10,454,489,846.24 RMB1,000,000,000 RMB3,000,000,000 RMB2,000,000,000 MOP2,379,415,900 USD300,052,800 RMB1,127,961,864 6,439,409,250 shares in issue
Percentage of shareholding 51% 66% 51% 80% 80% 74.94% 75% 51% 29.98%
by the Company
Total assets (RMB100 million) 671.76 350.70 10.17 31.57 28.24 68.95 76.42 175.06 1,553.07
Net assets (RMB100 million) (142.09) 24.53 4.94 22.81 19.52 16.32 14.51 20.32 471.12
Revenue (RMB100 million) 164.02 100.38 2.32 9.83 7.89 15.02 64.98 0.79 499.10
(on a consolidated basis)
(on a consolidated basis)
(on a consolidated basis)
Year-on-year changes (%) 2.39 2.63 0.23 3.76 (8.50) 1.97 13.65 8.65 10.64
Profit/(loss) attributable to parent company (RMB100 million) (8.33) (3.08) (0.48) (0.83) 0.09 (3.86) 1.91 0.27 33.55
Profit/(loss) attributable to parent company in the corresponding period of (13.74) 0.26 (0.40) (1.21) (0.59) (3.78) 2.66 0.26 30.67
last year
(RMB100 million)
The fleet information and operating data of the major subsidiaries and
associates of the Company were as follows:
As at the end of the Reporting Period/During the Reporting Period Shenzhen Airlines Shandong Airlines Beijing Airlines* Dalian Airlines Air China Inner Mongolia Air Macau Cathay Pacific
Fleet size (unit) 234 138 6 13 11 22 234
(on a consolidated basis)
(on a consolidated basis)
Average age (year) 10.45 11.20 12.45 11.73 11.53 9.04 11.5
ASK (100 million) 386.40 236.63 4.06 21.56 16.96 34.56 667.92
Year-on-year changes (%) 4.66 4.12 (13.42) 3.63 (4.00) (0.51) 26.3
RPK (100 million) 327.19 197.31 2.79 17.06 13.20 26.18 566.51
Year-on-year changes (%) 8.17 4.92 (10.27) 6.26 (2.98) 2.39 30.0
Passengers carried (10 thousand) 2,037.16 1,326.97 25.61 123.19 100.37 156.53 1,362.7
Year-on-year changes (%) 7.05 3.35 13.62 8.09 (2.52) 5.83 27.8
Average passenger load factor (%) 84.68 83.4 68.62 79.11 77.84 75.74 84.8
Year-on-year changes (pp) 2.74 0.64 2.41 1.96 0.81 2.14 2.4
*Note: As at the end of the Reporting Period, Beijing Airlines operated a
fleet of two entrusted business jets and one self-owned business jet with an
average age of 9.31 years. During the Reporting Period, in terms of business
charter service, Beijing Airlines completed 117 flights, representing a
year-on-year decrease of 4.88%; it completed 541.08 flying hours, representing
a year-on-year increase of 16.30%; it transported a total of 1,292 passengers,
representing a year-on-year increase of 33.75%.
EMPLOYEES
As at the end of the Reporting Period, the Company had a total of 47,073
employees, and the subsidiaries of the Company had a total of 58,475
employees.
REMUNERATION POLICY AND TRAINING
The Company upholds the concept of "compensation based on job value,
individual competence as well as performance appraisal". During the Reporting
Period, the Company strengthened full-level management and supervision of
total payroll, remuneration of heads of subsidiaries and employee
remuneration. It further emphasized performance-driven compensation
distribution, implemented differentiated salary reforms and promoted the
distribution of salary resources to core and key talents in the field of
scientific and technological innovation and those who have made outstanding
contributions, as well as front-line positions involving arduous, dirty,
hazardous and high-intensity work. With continuous efforts in deepening the
reform of gross payroll management, the Company improved the compensation
control mechanisms for enterprise heads at all levels to promote more rational
and orderly income distribution.
The training programs of the Company are the same as those disclosed in the
2024 annual report of the Company published on 23 April 2025.
Management Discussion and Analysis
The following discussion and analysis are based on the Group's interim
condensed consolidated financial statements and notes thereto which were
prepared in accordance with International Accounting Standard 34, Interim
Financial Reporting, as well as the applicable disclosure requirements under
Appendix D2 to the Listing Rules and are designed to assist the readers in
further understanding the information provided in this report so as to better
understand the financial conditions and results of operations of the Group as
a whole.
Revenue
During the Reporting Period, the Group's revenue was RMB80,757 million,
representing a year-on-year increase of RMB1,237 million or 1.56%. Among them,
air traffic revenue was RMB76,774 million, representing a year-on-year
increase of RMB308 million or 0.40%; other operating revenue was RMB3,983
million, representing a year-on-year increase of RMB929 million or 30.41%.
Revenue Contributed by Geographical Segments
For the six months ended 30 June
2025 2024
(in RMB'000) Amount Percentage Amount Percentage Change
International 21,940,162 27.17% 19,075,627 23.99% 15.02%
Mainland China 56,277,430 69.69% 57,960,673 72.89% (2.90%)
Hong Kong SAR, Macau SAR 2,539,842 3.14% 2,484,032 3.12% 2.25%
and Taiwan, China
Total 80,757,434 100.00% 79,520,332 100.00% 1.56%
Air Passenger Revenue
During the Reporting Period, the Group recorded an air passenger revenue of
RMB73,196 million, representing a year-on-year increase of RMB59 million.
Among the air passenger revenue, the increase of capacity resulted in an
increase in revenue of RMB2,463 million, and the increase of passenger load
factor resulted in an increase in revenue of RMB1,361 million, while the
decrease of passenger yield resulted in a decrease in revenue of RMB3,765
million. The capacity, passenger load factor and yield per RPK of air
passenger business during the Reporting Period are as follows:
For the six months ended 30 June
2025 2024 Change
Available seat kilometres (million) 177,576.14 171,790.89 3.37%
Passenger load factor (%) 80.72 79.29 1.43 pp
Yield per RPK (RMB) 0.5107 0.5369 (4.88%)
Air Passenger Revenue Contributed by Geographical Segments
For the six months ended 30 June
2025 2024
(in RMB'000) Amount Percentage Amount Percentage Change
International 19,233,312 26.28% 16,567,178 22.65% 16.09%
Mainland China 51,523,843 70.39% 54,187,183 74.09% (4.92%)
Hong Kong SAR, Macau SAR and Taiwan, China 2,439,221 3.33% 2,382,755 3.26% 2.37%
Total 73,196,376 100.00% 73,137,116 100.00% 0.08%
Air Cargo and Mail Revenue
During the Reporting Period, the Group's air cargo and mail revenue was
RMB3,577 million, representing a year-on-year increase of RMB249 million.
Among which, the increase of capacity contributed to an increase in revenue of
RMB165 million, and the increase of cargo and mail load factor resulted in an
increase in revenue of RMB90 million, while the decrease of yield of cargo and
mail business resulted in a decrease in revenue of RMB6 million. The capacity,
cargo and mail load factor and yield per RFTK of air cargo and mail business
during the Reporting Period are as follows:
For the six months ended 30 June
2025 2024 Change
Available freight tonne kilometres (million) 6,425.74 6,122.03 4.96%
Cargo and mail load factor (%) 37.48 36.54 0.94 pp
Yield per RFTK (RMB) 1.4853 1.4878 (0.17%)
Air Cargo and Mail Revenue Contributed by Geographical Segments
For the six months ended 30 June
2025 2024
(in RMB'000) Amount Percentage Amount Percentage Change
International 2,706,850 75.67% 2,508,449 75.36% 7.91%
Mainland China 769,997 21.52% 718,726 21.59% 7.13%
Hong Kong SAR, Macau SAR and Taiwan, China 100,621 2.81% 101,277 3.05% (0.65%)
Total 3,577,468 100.00% 3,328,452 100.00% 7.48%
Operating Expenses
During the Reporting Period, the Group's operating expenses increased by
RMB1,217 million on a year-on-year basis to RMB85,070 million, representing an
increase of 1.45%. The breakdown of the operating expenses is set out below:
For the six months ended 30 June
2025 2024
(in RMB'000) Amount Percentage Amount Percentage Change
Jet fuel costs 24,327,485 28.60% 27,132,269 32.36% (10.34%)
Take-off, landing and depot charges 10,613,810 12.48% 9,963,482 11.88% 6.53%
Depreciation and amortisation 14,837,638 17.44% 14,025,285 16.73% 5.79%
Aircraft maintenance, repair 7,292,075 8.57% 6,862,447 8.18% 6.26%
and overhaul costs
Employee compensation costs 17,849,218 20.98% 16,953,921 20.22% 5.28%
Air catering charges 2,104,979 2.47% 1,973,435 2.35% 6.67%
Selling and marketing expenses 2,410,378 2.83% 2,275,875 2.71% 5.91%
General and administrative expenses 797,634 0.94% 780,314 0.93% 2.22%
Others 4,836,492 5.69% 3,886,126 4.64% 24.46%
Total 85,069,709 100.00% 83,853,154 100.00% 1.45%
- Jet fuel costs decreased by RMB2,805 million on a
year-on-year basis, mainly due to the combined effect of the decrease in the
prices of jet fuel and increase in the consumption of jet fuel.
- Take-off, landing and depot charges increased by RMB650
million on a year-on-year basis, mainly due to the year-on-year increase in
the number of take-offs and landings.
- Depreciation and amortisation expenses increased by
RMB812 million on a year-on-year basis, mainly due to the expansion of fleet
as well as the year-on-year increase in flying hours.
- Aircraft maintenance, repair and overhaul costs
increased by RMB430 million on a year-on-year basis, mainly due to the
year-on-year increase in flying hours.
- Employee compensation costs increased by RMB895 million
on a year-on-year basis, mainly due to the year-on-year increase in flight
hour fees.
- Air catering charges increased by RMB132 million on a
year-on-year basis, mainly due to the increase in the number of passengers.
- Selling and marketing expenses increased by RMB135
million on a year-on-year basis, mainly due to the increase in booking fees
resulting from the increase in the sales volumes and the number of passengers.
- Other operating expenses mainly included the Civil
Aviation Development Fund and ordinary expenses arising from the core air
traffic business that are not included in the aforementioned specific items,
which increased by RMB950 million on a year-on-year basis, mainly due to the
effect of the increase in the investment in production and operation and
changes in contract performance costs of aircraft maintenance subsidiaries.
Net Exchange Gain and Finance Costs
During the Reporting Period, the Group recorded a net exchange gain of RMB176
million, as compared to the net exchange loss of RMB360 million for the same
period last year. The Group incurred finance costs of RMB2,891 million
(excluding those capitalised) during the Reporting Period, representing a
year-on-year decrease of RMB375 million.
Share of Results of Associates and Joint Ventures
During the Reporting Period, the Group's share of profits of its associates
was RMB1,220 million, representing a year-on-year increase of RMB135 million.
The Group recognised share of profit from Cathay Pacific of RMB1,174 million
during the Reporting Period, representing a year-on-year increase of RMB106
million.
During the Reporting Period, the Group's share of profits of its joint
ventures was RMB117 million, representing a year-on-year increase of RMB26
million.
MATERIAL ACQUISITIONS AND DISPOSALS
The Company did not make any material acquisitions or disposals of
subsidiaries, associates or joint ventures during the Reporting Period.
Assets Structure Analysis
At the end of the Reporting Period, the total assets of the Group were
RMB347,539 million, representing an increase of 0.52% from that as at 31
December 2024. Among them, the current assets accounted for RMB47,750 million
or 13.74% of the total assets, while the non-current assets accounted for
RMB299,789 million or 86.26% of the total assets.
Among the current assets, cash and cash equivalents were RMB25,331 million,
representing an increase of 20.40% from that as at 31 December 2024, which was
mainly due to the Company's flexible adjustment of its funds according to its
capital arrangements.
Among the non-current assets, the book values of property, plant and equipment
and right-of-use assets as at the end of the Reporting Period amounted to
RMB237,141 million, representing a decrease of 1.61% from that as at 31
December 2024.
Asset Mortgage/Pledge
At the end of the Reporting Period, the Group, pursuant to certain bank loan
agreements, had secured aircraft and buildings with an aggregate book value of
approximately RMB4,669 million (RMB3,825 million as at 31 December 2024) and
land use rights with book value of approximately RMB23 million (RMB23 million
as at 31 December 2024). Meanwhile, the Group had restricted monetary funds of
approximately RMB2,591 million (RMB1,428 million as at 31 December 2024),
which were mainly statutory reserves deposited in the People's Bank of China,
pledged bank deposits, security deposits and time deposits with a maturity of
more than three months.
Capital Expenditure
During the Reporting Period, the Group's capital expenditure amounted to a
total of RMB5,859 million. Among this, aircraft-related investments totalled
RMB2,362 million, primarily covering the acquisition of aircraft and engines,
aircraft modifications and retrofitting, as well as flight simulators. Cash
portion of long-term investment projects amounted to RMB2,726 million,
including capital injection projects for Air Macau, Air China Inner Mongolia
and Sichuan Airlines Co., Ltd. Other capital expenditure project investments
amounted to RMB771 million, mainly covering infrastructure construction,
information system development and ground equipment procurement.
Equity Investment
As at the end of the Reporting Period, the Group's equity investment in its
associates amounted to RMB14,286 million, representing a decrease of 2.37%
from that of 31 December 2024. Among this, the balance of the equity
investment of the Group in Cathay Pacific amounted to RMB13,951 million.
As at the end of the Reporting Period, the Group's equity investment in its
joint ventures was RMB2,486 million, representing an increase of 2.57% from
that as at 31 December 2024.
Debt Structure Analysis
At the end of the Reporting Period, the Group's total liabilities were
RMB309,309 million, representing an increase of 1.47% from that as at 31
December 2024. Among them, current liabilities amounted to RMB126,209 million,
accounting for 40.80% of the total liabilities; and non-current liabilities
amounted to RMB183,100 million, accounting for 59.20% of the total
liabilities.
Among the current liabilities, interest-bearing debts (including
interest-bearing borrowings and lease liabilities) amounted to RMB76,696
million, representing a decrease of 16.64% from that as at 31 December 2024.
Among the non-current liabilities, interest-bearing debts (including
interest-bearing borrowings and lease liabilities) amounted to RMB159,483
million, representing an increase of 10.77% from that as at 31 December 2024.
Details of interest-bearing liabilities of the Group categorised by currency
are set out below:
30 June 2025 31 December 2024 Change
(in RMB'000) Amount Percentage Amount Percentage
RMB 209,851,014 88.85% 205,662,318 87.15% 2.04%
US dollars 25,877,883 10.96% 29,874,295 12.66% (13.38%)
Others 449,659 0.19% 443,893 0.19% 1.30%
Total 236,178,556 100.00% 235,980,506 100.00% 0.08%
Details of the interest-bearing borrowings of the Group (including the range
of interest rates) are set out in note 18 to the condensed consolidated
financial statements of this interim report.
As at the end of the Reporting Period, the Group did not use financial
instruments for hedging purposes.
Commitments
The Group's capital commitments, which mainly consisted of the expenditure in
the next few years for purchasing certain aircraft and related equipment,
decreased by 2.07% from RMB95,175 million as at 31 December 2024 to RMB93,200
million as at the end of the Reporting Period. The Group's investment
commitments, which were mainly used for the investment agreements that have
been signed and come into effect, amounted to RMB267 million as at the end of
the Reporting Period, as compared with RMB313 million as at 31 December 2024.
Contingent Liabilities
At the end of the Reporting Period, the Group had no material contingent
liabilities.
Gearing Ratio
As at the end of the Reporting Period, the Group's gearing ratio (total
liabilities divided by total assets) was 89.00%, representing an increase of
0.84 percentage points from that as at 31 December 2024.
Working Capital and Its Sources
As at the end of the Reporting Period, the Group's net current liabilities
(current liabilities less current assets) were RMB78,459 million, representing
a decrease of RMB18,464 million from that as at 31 December 2024. The Group's
current ratio (current assets divided by current liabilities) was 0.38,
representing an increase of 0.08 as compared to that as at 31 December 2024.
The Group meets its working capital needs mainly through its operating
activities and external financing activities. During the Reporting Period, the
Group's net cash inflow from operating activities was RMB14,828 million,
representing an increase of 4.03% from RMB14,253 million for the corresponding
period in 2024. Net cash outflow from investing activities was RMB7,338
million, representing a decrease of 10.26% from RMB8,177 million for the
corresponding period in 2024, mainly due to a year-on-year decrease in
expenditures for the purchase of debt instruments measured at amortised cost.
Net cash outflow from financing activities amounted to RMB3,218 million,
representing an increase of 178.99% from RMB1,154 million for the
corresponding period in 2024, mainly due to the repayment of bank loans and
other borrowings during the current period.
At the end of the Reporting Period, the Company has obtained certain bank
facilities of up to RMB278,622 million granted by several banks in the PRC,
among which approximately RMB98,529 million has been utilised and
approximately RMB180,093 million remained unutilised. The remaining amount is
sufficient to meet its demands on liquidity and future capital commitments.
POTENTIAL RISKS
1. Risks of External Environment
Market Fluctuation
Relying on the super-sized domestic demand market, the domestic aviation
market is expected to achieve steady growth. Against the backdrop of rapidly
evolving global political, economic and trade dynamics, uncertainties persist
in the development of the Company's traditionally strong international
markets, particularly in North America. The Group will fully, precisely and
comprehensively implement the new development philosophy, proactively support
and integrate into the new development paradigm, anchor efforts on the
domestic circulation, better support high-standard opening up, increase the
international fleet capacity deployment, optimize its structure, and actively
explore and cultivate emerging markets relating to the "Belt and Road"
initiative.
Oil Price Fluctuation
Jet fuel is one of the major operating costs of the Group. The performance of
the Group is affected to a certain extent by fluctuations in jet fuel prices.
During the Reporting Period, with all other variables remaining unchanged, a
5% increase or decrease in the average jet fuel price would lead to a
corresponding approximate increase or decrease of RMB1,216 million in the
Group's jet fuel costs. The introduction of fuel surcharges has alleviated the
Group's jet fuel cost pressure to some extent.
Exchange Rate Fluctuation
The Group's certain assets and liabilities are denominated in US dollar, while
a portion of international revenue and expenses of the Group are settled in
currencies other than RMB. Assuming all other risk variables remain unchanged,
a 1% appreciation or depreciation of RMB against the US dollar would result in
an increase or decrease of RMB133 million in the Group's net profit and
shareholders' equity as of 30 June 2025. As of the end of the Reporting
Period, the Group had no foreign exchange hedging instruments.
2. Risks of Competition
Industry competition
During the Reporting Period, as there was no significant reduction in the
number of operating entities in the market, the Company continued to face
relatively intense industry competition. The domestic market maintained a
supply-demand imbalance characterized by increasing volume but declining
prices. Influenced by market recovery, traffic right allocation and other
factors, the resumption and launch of new international routes mainly
concentrated in destinations such as Central Asia, West Asia and Europe,
resulting in an intense competition in certain regions. Adhering to its
strategy for hub network, the Company will devote efforts to building the
Beijing-Chengdu dual-hub with a focus on developing strategic markets
including the "Four-Pole Clusters" and Xinjiang, thereby achieving
differentiated development from other market competitors. Consistent efforts
will be made to optimize competitive domestic and international route networks
centering around hubs as well as principal bases and markets, while
introducing efficient and convenient domestic route and express route products
to strengthen core market competitiveness through high-quality products and
services.
Alternative competition
As the world's largest high-speed railway network further expanded, there is
an ongoing risk of passenger diversion in short- and medium-distance
transportation. In the long run, high-speed railway will reshape China's
economic geography. The civil aviation sector shall give full play to its
comparative advantages within the comprehensive transportation system by
increasing fleet capacity on domestic long-haul and international routes, and
expanding public travel services to remote regions. Meanwhile, leveraging
air-rail intermodal transport as a key support for the development of aviation
hubs, advancing the optimization and upgrade of transit products, and
delivering universally accessible, high-quality integrated transportation
services to the public.
Corporate Governance and Other Information
CHANGES IN THE INFORMATION OF DIRECTORS, SUPERVISORS AND SENIOR MANAGEMENT OF
THE COMPANY
1. On 25 February 2025, Mr. Ma Chongxian, Mr. Wang Mingyuan,
Mr. Cui Xiaofeng and Mr. Patrick Healy were elected as non-independent
Directors of the seventh session of the Board of the Company at the 2025 first
extraordinary general meeting of the Company. Mr. Xu Niansha, Mr. He Yun, Ms.
Winnie Tam Wan-chi and Mr. Gao Chunlei were elected as the independent
non-executive Directors of the seventh session of the Board of the Company.
Mr. Xu Junxin ceased to be an independent non-executive Director of the
Company due to expiry of term of office. The thirteenth meeting of the third
session of the employee representatives congress of the Company elected Mr.
Xiao Peng as the employee representative Director of the seventh session of
the Board of the Company. For details, please refer to the announcements of
the Company dated 27 January 2025 and 25 February 2025.
In addition, on 30 August 2024, Mr. Li Fushen resigned as an independent
non-executive Director of the Company as well as from other duties. In
subsequent months, the Company has been actively considering and processing
the adjustment of the composition of the Audit and Risk Management Committee
(the Supervision Committee) and the Nomination Committee, including but not
limited to exploring the candidate who will fill the vacancy resulted from Mr.
Li Fushen's resignation. As such, the Company has applied to the Hong Kong
Stock Exchange and the Hong Kong Stock Exchange has agreed to grant a waiver
from strict compliance with Rules 3.21 and 3.27A of the Listing Rules, and
extend the deadline for filling the vacancy from 30 November 2024 to 28
February 2025. Immediately following the election of Directors of the seventh
session of the Board and the change of the Board committee members, the
Company has fully complied with the requirements as set out in Rules 3.21 and
3.27A of the Listing Rules. For details, please refer to the announcements of
the Company dated 30 August 2024, 27 December 2024 and 25 February 2025.
2. On 24 June 2025, the resolution on the amendments to the
Articles of Associations and the abolishment of the Supervisory Committee was
approved at the 2024 annual general meeting of the Company. Since 24 June
2025, the Company no longer maintains the Supervisory Committee and Supervisor
positions. For details, please refer to the announcement of the Company dated
24 June 2025.
3. On 31 July 2025, Mr. Huen Ho Yin ("Mr. Huen") resigned as
the joint company secretary of the Company with effect from 1 August 2025. Mr.
Xiao Feng continues to serve and act as the sole company secretary of the
Company after the resignation of Mr. Huen. Mr. Xiao Feng has been admitted as
a fellow of both The Hong Kong Chartered Governance Institute and The
Chartered Governance Institute. Mr. Leung Yik Fung replaced Mr. Huen as the
agent of the Company for accepting service of process and notices on behalf of
the Company in Hong Kong under Rule 19A.13(2) of the Listing Rules with effect
from 1 August 2025. For details, please refer to the announcement of the
Company dated 31 July 2025.
SHAREHOLDINGS OF DIRECTORS, CHIEF EXECUTIVE AND SUBSTANTIAL SHAREHOLDERS OF
THE COMPANY
INTERESTS OF DIRECTORS AND CHIEF EXECUTIVE
As at the end of the Reporting Period, none of the Directors or the chief
executive of the Company had interests or short positions in the shares,
underlying shares and/or debentures (as the case may be) of the Company or its
associated corporations (within the meaning of Part XV of the SFO) which shall
be recorded and maintained in the register kept by the Company pursuant to
section 352 of the SFO, or which shall be notified to the Company and the Hong
Kong Stock Exchange pursuant to the Model Code.
Cathay Pacific is currently a substantial shareholder of the Company holding
2,633,725,455 H Shares of the Company as at the end of the Reporting Period.
Such interests are required to be disclosed to the Company in accordance with
Divisions 2 and 3 under Part XV of the SFO. During the Reporting Period, Mr.
Ma Chongxian, Mr. Wang Mingyuan (executive Directors of the Company) and Mr.
Patrick Healy (non-executive Director of the Company) also served as directors
of Cathay Pacific. Cathay Pacific competes or is likely to compete either
directly or indirectly with some aspects of the business of the Company as it
operates airline services to certain destinations, which are also served by
the Company.
Save as disclosed above, none of the Directors of the Company and their
respective close associates (as defined in the Listing Rules) has any
competing interests which shall be disclosed under Rule 8.10 of the Listing
Rules.
SUBSTANTIAL SHAREHOLDERS' INTERESTS IN THE COMPANY
As at the end of the Reporting Period, to the knowledge of the Directors and
chief executive of the Company, the following persons (other than the
Directors or chief executive of the Company) had interests or short positions
in the shares or underlying shares of the Company as recorded in the register
required to be kept pursuant to Section 336 of the SFO:
Name Type of interests Type and number of shares held by the Company Percentage of the total issued shares of the Company Percentage of the total issued A Shares of the Company Percentage of the total issued H Shares of the Company Short positions
CNAHC Beneficial owner 7,421,462,701 A Shares 42.53% 59.41% - -
CNAHC ((1)) Equity attributable 1,332,482,920 A Shares 7.64% 10.67% - -
CNAHC ((1)) Equity attributable 616,779,308 H Shares 3.54% - 12.45% -
CNACG Beneficial owner 1,332,482,920 A Shares 7.64% 10.67% - -
CNACG Beneficial owner 616,779,308 H Shares 3.54% - 12.45% -
Cathay Pacific Beneficial owner 2,633,725,455 H Shares 15.09% - 53.15% -
Swire Pacific Limited((2)) Equity attributable 2,633,725,455 H Shares 15.09% - 53.15% -
John Swire & Sons (H.K.) Limited((2)) Equity attributable 2,633,725,455 H Shares 15.09% - 53.15% -
John Swire & Sons Limited((2)) Equity attributable 2,633,725,455 H Shares 15.09% - 53.15% -
Notes:
Based on the information available to the Directors and chief executive
(including such information as was available on the website of the Hong Kong
Stock Exchange) and to the knowledge of the Directors and chief executive, as
at the end of the Reporting Period:
1. By virtue of CNAHC's 100% interest in CNACG, CNAHC was
deemed to be interested in the 1,332,482,920 A Shares and 616,779,308 H Shares
directly held by CNACG.
2. By virtue of John Swire & Sons Limited's 100%
interest in John Swire & Sons (H.K.) Limited and their approximately
64.45% equity interest and 70.97% voting rights in Swire Pacific Limited, and
Swire Pacific Limited's approximately 44.98% equity interest in Cathay Pacific
as at the end of the Reporting Period, John Swire & Sons Limited, John
Swire & Sons (H.K.) Limited and Swire Pacific Limited were deemed to be
interested in the 2,633,725,455 H Shares of the Company directly held by
Cathay Pacific.
Save as disclosed above, as at the end of the Reporting Period, to the
knowledge of the Directors and chief executive of the Company, no other person
had an interest or short position in the shares or underlying shares of the
Company as recorded in the register required to be kept pursuant to Section
336 of the SFO.
TOTAL NUMBER OF SHAREHOLDERS
Total number of holders of ordinary shares as at the end of the Reporting 129,205 accounts, of which 2,777 accounts are registered holders of H Shares
Period (account)
INFORMATION OF SHAREHOLDERS
Unit: Share
Shareholdings of the top 10 shareholders (excluding shares lent through
securities lending and refinancing)
Name of shareholder (full name) Change(s) during the Reporting Period Number of shares held as at the end of the Reporting Period Shareholding percentage Number of shares held subject to selling restrictions Shares pledged, Nature of
(%)
marked or frozen
Shareholder
Status Number
China National Aviation Holding Corporation Limited 0 7,421,462,701 42.53 854,700,854 Frozen 127,445,536 State-owned legal person
Cathay Pacific Airways Limited 0 2,633,725,455 15.09 0 Nil 0 Foreign legal person
China National Aviation Corporation (Group) Limited 0 1,949,262,228 11.18 392,927,308 Frozen 36,454,464 Foreign legal person
HKSCC NOMINEES LIMITED 275,350 1,689,880,685 9.69 0 Nil 0 Foreign legal person
China Securities Finance Corporation Limited 0 311,302,365 1.78 0 Nil 0 Other
Hong Kong Securities Clearing Company Limited -21,281,787 279,073,653 1.60 0 Nil 0 Foreign legal person
China National Aviation Fuel Group Corporation 0 238,524,158 1.37 0 Nil 0 State-owned legal person
National Social Security Fund 114 Portfolio 68,249,185 68,249,185 0.39 0 Nil 0 Other
(全國社保基金一一四組合)
Industrial and Commercial Bank of China - Huatai-PineBridge CSI 300 2,177,700 66,800,769 0.38 0 Nil 0 Other
Exchange-traded Open-end Index Securities Investment Fund
(中國工商銀行股份有限公司－華泰柏瑞滬深300交易型開放式指數證券投資基金)
China Structural Reform Fund Co., Ltd. 0 52,833,706 0.30 0 Nil 0 State-owned legal person
(中國國有企業結構調整基金股份有限公司)
Unit: Share
Shareholdings of the top 10 shareholders
(excluding shares lent through securities lending and refinancing, and lock-up
shares of senior management officers)
Name of shareholder Number of tradable shares held not subject to selling restrictions Type and number of shares
Type Number
China National Aviation Holding Corporation Limited 6,566,761,847 RMB ordinary shares 6,566,761,847
Cathay Pacific Airways Limited 2,633,725,455 Overseas listed foreign shares 2,633,725,455
HKSCC NOMINEES LIMITED 1,689,880,685 Overseas listed foreign shares 1,689,880,685
China National Aviation Corporation (Group) Limited 1,556,334,920 RMB ordinary shares 1,332,482,920
Overseas listed foreign shares 223,852,000
China Securities Finance Corporation Limited 311,302,365 RMB ordinary shares 311,302,365
Hong Kong Securities Clearing Company Limited 279,073,653 RMB ordinary shares 279,073,653
China National Aviation Fuel Group Limited 238,524,158 RMB ordinary shares 238,524,158
National Social Security Fund 114 Portfolio 68,249,185 RMB ordinary shares 68,249,185
(全國社保基金一一四組合)
Industrial and Commercial Bank of China -Huatai-PineBridge CSI 300 66,800,769 RMB ordinary shares 66,800,769
Exchange-traded Open-end Index Securities Investment Fund
(中國工商銀行股份有限公司－華泰柏瑞滬深300交易型開放式指數證券投資基金)
China Structural Reform Fund Co., Ltd. 52,833,706 RMB ordinary shares 52,833,706
(中國國有企業結構調整基金股份有限公司)
Explanation on the repurchase special accounts among the top 10 shareholders Nil
Explanation on the right to vote by proxy, proxy and abstention from voting Nil
among the above shareholders
Explanation on related relationship or action in concert among the above CNACG is a wholly-owned subsidiary of CNAHC. Accordingly, CNAHC is directly
shareholders and indirectly interested in 53.71% of the shares of the Company.
Explanation on preference shareholders whose voting rights have been restored Nil
and the number of shares held
1. HKSCC NOMINEES LIMITED is a subsidiary of The Stock
Exchange of Hong Kong Limited and its principal business is acting as nominee
for and on behalf of other corporate shareholders or individual shareholders.
The 1,689,800,685 H Shares held by it in the Company do not include the
166,852,000 shares held by it as nominee of CNACG.
2. According to the "Implementation Measures on Partial
Transfer of State-owned Shares to the National Social Security Fund in the
Domestic Securities Market" (Cai Qi 2009 No. 94)
(《境內證券市場轉持部分國有股充實全國社會保障基金實施辦法》(財企 2009 94號))
and the Notice (2009 No. 63) jointly issued by the Ministry of Finance, the
State-owned Assets Supervision and Administration Commission of the State
Council, China Securities Regulatory Commission and the National Council for
Social Security Fund, 127,445,536 and 36,454,464 shares held by CNAHC, the
controlling shareholder of the Company, and CNACG respectively are frozen at
present.
Unit: Share
Shareholdings of the top 10 shareholders subject to selling restrictions and
conditions of selling restrictions
No. Name of shareholder subject to selling restrictions Number of Listing and trading status of Selling restrictions
shares held subject to
shares subject to selling restrictions
selling restrictions
Date of being permitted for listing and trading Number of shares to be listed and traded
1 China National Aviation Holding Corporation Limited 854,700,854 10 December 2027 854,700,854 Lock-up period of 36 months
2 China National Aviation Corporation (Group) Limited 392,927,308 8 February 2027 392,927,308 Lock-up period of 36 months
Explanation on related relationship or action in CNACG is a wholly-owned subsidiary of CNAHC.
concert among the above shareholders
CORPORATE GOVERNANCE
Compliance with the Corporate Governance Code
The Company has complied with the code provisions in Part 2 of the Corporate
Governance Code as set out in Appendix C1 to the Listing Rules throughout the
Reporting Period.
Compliance with the Model Code
The Company has adopted and formulated a code of conduct on terms no less
stringent than the required standards of the Model Code. After making specific
enquiries, the Company confirmed that each Director and each Supervisor has
complied with the required standards of the Model Code and the Company's code
of conduct throughout the Reporting Period.
OTHER SIGNIFICANT MATTERS
On 28 May 2025, at the 4th meeting of the seventh session of the Board of the
Company, resolutions in relation to the amendments to the Articles of
Association and the abolishment of the Supervisory Committee, the amendments
to the Rules and Procedures of Shareholders' Meetings and the amendments to
the Rules and Procedures of Meetings of the Board were considered and
approved. On 24 June 2025, the above-mentioned resolutions were considered and
approved at the 2024 annual general meeting of the Company. For details,
please refer to the announcements of the Company dated 28 May 2025 and 24 June
2025.
As considered and approved at the 2nd meeting of the seventh session of the
Board of the Company and approved at the 2024 annual general meeting, KPMG was
appointed as the Company's international auditor for the year 2025 and KPMG
Huazhen LLP was appointed as the Company's domestic auditor and internal
control auditor for the year 2025. For details, please refer to the
announcements of the Company dated 27 March 2025 and 24 June 2025.
On 29 July 2025, as considered and approved at the 5th meeting of the seventh
session of the Board of the Company, the Company entered into an agreement
with Air China Cargo, pursuant to which the Company sold two Trent700 spare
engines and one GTCP331-350 spare APU to Air China Cargo at a selling price of
RMB151.4405 million (exclusive of tax). For details, please refer to the
announcement of the Company dated 29 July 2025.
On 28 August 2025, the Company announced that Shenzhen Airlines proposes to
carry out an equity financing with a total financing amount of RMB16 billion
(the "Financing"), among which, the Company intends to participate in the
Financing by making capital contribution proportionate to its current 51%
equity interests in Shenzhen Airlines. The total capital contribution to be
made by the Company in the Financing will not exceed RMB8.16 billion. The
Financing will be conducted in stages. For the initial tranche of the
Financing (the "Initial Financing"), it is proposed that one investor (the
"Investor") will be solicited through the Shenzhen United Property and Equity
Exchange to invest RMB2 billion in cash. Concurrently, the Company will make a
cash capital contribution by way of a non-public agreement in the amount of
RMB2.08163 billion. Upon completion of the Financing, the Company's equity
interests in Shenzhen Airlines will remain unchanged at 51%, and Shenzhen
Airlines will remain a subsidiary of the Company. For details, please refer to
the announcement of the Company dated 28 August 2025.
USE OF PROCEEDS RAISED FROM THE ISSUANCE OF A SHARES TO SPECIFIC INVESTOR
In order to enhance fleet strength, consolidate competitive advantages,
accelerate the realization of the Company's strategic planning, replenish
working capital, implement safety production responsibilities, meet the
Company's capital requirement for business development, improve capital
structure, strengthen financial soundness and enhance the Company's
comprehensive risk resistance capability, on 10 December 2024, the Company
issued 854,700,854 A Shares to CNAHC (with a total nominal value of
RMB854,700,854) at the issue price of RMB7.02 per share (the "Issuance of A
Shares to Specific Investor"), raising net proceeds of RMB5,995,841,631.45 or
net proceeds of RMB7.0151 per A Share issued to the specific investor. For
details, please refer to the announcement of the Company dated 12 December
2024. On 22 December 2023 (being the date on which the terms of the issue were
fixed), the closing price of the Company's A Shares was RMB7.17 per share.
During the Reporting Period, the net proceeds from the Issuance of A Shares to
Specific Investor have been utilized according to the plan disclosed by the
Company. The following table shows the use of net proceeds from the Issuance
of A Shares to Specific Investor:
Unit: RMB
Committed investment project Total committed investment of proceeds raised Outstanding Amount utilised Outstanding Expected timeline for the completion of utilisation of proceeds raised
amount as at the beginning of the Reporting Period
during the
amount as at the
Reporting Period
end of the
Reporting Period
Introduction of 17 aircraft 4,195,841,631.45 3,396,240,456.16 2,941,840,127.91 454,400,328.25 By 31 December 2026(Note)
Replenishing working capital 1,800,000,000.00 Nil Nil Nil N/A
Note: The expected timeline for the utilization of the proceeds is
estimated based on the Company's current available information and may be
subject to change depending on the actual delivery schedule of the aircraft.
BASIC INFORMATION OF NON-FINANCIAL CORPORATE DEBT FINANCING INSTRUMENTS
The following is the basic information of the Group's non-financial corporate
debt financing instruments as at the end of the Reporting Period:
Unit: RMB billion, Currency: RMB
Name of Bond Abbreviation Code Issue Date Value Date Expiry Date Balance of Interest Payment of
the Bond
Rate (%)
principal and interest
Air China Limited 2025 Super Short-term Commercial Paper (First Tranche) 25ACSCP001 012580391 17 February 2025 18 February 2025 15 November 2025 2.013 1.82 One-off payment of principal and interest on maturity
Air China Limited 2025 Super Short-term Commercial Paper (Second Tranche) 25ACSCP002 012580449 20 February 2025 21 February 2025 18 November 2025 2.517 1.90 One-off payment of principal and interest on maturity
Air China Limited 2025 Super Short-term Commercial Paper (Third Tranche) 25ACSCP003 012580860 10 April 2025 11 April 2025 8 October 2025 3.011 1.62 One-off payment of principal and interest on maturity
Air China Limited 2025 Super Short-term Commercial Paper (Fourth Tranche) 25ACSCP004 012581468 20 June 2025 23 June 2025 20 March 2026 2.001 1.51 One-off payment of principal and interest on maturity
Air China Limited 2022 Medium Term Note (First Tranche) 22ACMTN001 102282150 22 September 2022 23 September 2022 23 September 2025 3.059 2.54 Interest on annual basis Repayment of principal on maturity
Air China Limited 2024 Medium Term Note (First Tranche) 24ACMTN001 102482159 4 June 2024 5 June 2024 5 June 2027 1.002 2.25 Interest on annual basis Repayment of principal on maturity
Air China Limited 2024 Medium Term Note (Second Tranche) 24ACMTN002 102484189 19 September 2024 20 September 2024 20 September 2027 3.047 2.03 Interest on annual basis Repayment of principal on maturity
Air China Limited 2024 Medium Term Note (Third Tranche) 24ACMTN003 102484862 11 November 2024 12 November 2024 12 November 2027 2.027 2.15 Interest on annual basis Repayment of principal on maturity
Air China Limited 2025 Medium Term Note (First Tranche) 25ACMTN001 102581251 19 March 2025 20 March 2025 20 March 2028 2.514 2.03 Interest on annual basis Repayment of principal on maturity
Air China Limited 2025 Medium Term Note (Second Tranche) 25ACMTN002 102581322 21 March 2025 24 March 2025 24 March 2030 2.012 2.15 Interest on annual basis Repayment of principal on maturity
Air China Limited 2025 Medium Term Note (Third Tranche) 25ACMTN003 102581710 17 April 2025 18 April 2025 18 April 2028 2.007 1.82 Interest on annual basis Repayment of principal on maturity
Air China Limited 2025 Medium Term Note (Fourth Tranche) 25ACMTN004 102581862 24 April 2025 25 April 2025 25 April 2028 2.508 1.85 Interest on annual basis Repayment of principal on maturity
Air China Limited 2025 Medium Term Note (Fifth Tranche) 25ACMTN005 102582133 22 May 2025 23 May 2025 23 May 2028 3.006 1.77 Interest on annual basis Repayment of principal on maturity
Air China Limited 2025 Medium Term Note (Sixth Tranche) 25ACMTN006 102582162 26 May 2025 27 May 2025 27 May 2028 3.005 1.76 Interest on annual basis Repayment of principal on maturity
Air China Limited 2025 Medium Term Note (Seventh Tranche) 25ACMTN007 102582570 23 June 2025 24 June 2025 24 June 2028 2.001 1.74 Interest on annual basis Repayment of principal on maturity
The bonds set out in the table, namely "25ACSCP001", "25ACSCP002",
"25ACSCP003", "25ACSCP004", "22ACMTN001", "24ACMTN001", "24ACMTN002",
"24ACMTN003", "25ACMTN001", "25ACMTN002", "25ACMTN003", "25ACMTN004",
"25ACMTN005", "25ACMTN006" and "25ACMTN007" are all traded on the interbank
bond market, issued to institutional investors in the national interbank bond
market, performed in accordance with the trading rules of the National
Interbank Funding Centre (全國銀行間同業拆借中心), and are not
subject to the risk of termination of listing and trading.
PURCHASE, SALE OR REDEMPTION OF LISTED SECURITIES
During the Reporting Period, neither the Company nor any of its subsidiaries
purchased, sold or redeemed any listed securities of the Company (including
the sale of Treasury Shares) (the term "securities" has the meaning ascribed
to it under paragraph 1 of Appendix D2 to the Listing Rules).
As at the end of the Reporting Period, the Company did not hold any Treasury
Shares.
INTERIM DIVIDEND
No interim dividend will be paid by the Company for the six months ended 30
June 2025.
REVIEW BY THE AUDIT AND RISK MANAGEMENT COMMITTEE (THE SUPERVISION COMMITTEE)
The audit and risk control committee (the supervision committee) of the
Company has reviewed the Company's interim report for the six months ended 30
June 2025, the Company's unaudited interim condensed consolidated financial
statements and the accounting policies and practices adopted by the Group.
OTHER INFORMATION
In order to comply with paragraph 40 of Appendix D2 to the Listing Rules, save
as disclosed herein, the Company confirmed that there are no material changes
in the current information of the Company in relation to matters as set out in
paragraph 32 of Appendix D2 to the Listing Rules as compared with the relevant
disclosures in the 2024 annual report of the Company.
SUBSEQUENT EVENTS
For subsequent events, please refer to the sections headed "Changes in the
Information of Directors, Supervisors and Senior Management of the Company"
and "Other Significant Matters" of this report.
Independent Review Report
TO THE BOARD OF DIRECTORS OF AIR CHINA LIMITED
(中國國際航空股份有限公司)
(Incorporated in the People's Republic of China with limited liability)
INTRODUCTION
We have reviewed the accompanying interim financial report, which comprises
the consolidated statement of financial position of Air China Limited as of 30
June 2025, the related consolidated statement of profit or loss, statement of
profit or loss and other comprehensive income, statement of changes in equity
and condensed consolidated statement of cash flows for the six-month period
then ended and explanatory notes. The Rules Governing the Listing of
Securities on The Stock Exchange of Hong Kong Limited require the preparation
of an interim financial report to be in compliance with the relevant
provisions thereof and International Accounting Standard 34, Interim Financial
Reporting, issued by the International Accounting Standards Board. The
directors are responsible for the preparation and presentation of the interim
financial report in accordance with International Accounting Standard 34.
Our responsibility is to form a conclusion, based on our review, on the
interim financial report and to report our conclusion solely to you, as a
body, in accordance with our agreed terms of engagement, and for no other
purpose. We do not assume responsibility towards or accept liability to any
other person for the contents of this report.
SCOPE OF REVIEW
We conducted our review in accordance with International Standard on Review
Engagements 2410 Review of Interim Financial Information Performed by the
Independent Auditor of the Entity, issued by the International Auditing and
Assurance Standards Board. A review of interim financial report consists of
making inquiries, primarily of persons responsible for financial and
accounting matters, and applying analytical and other review procedures. A
review is substantially less in scope than an audit conducted in accordance
with International Standards on Auditing and consequently does not enable us
to obtain assurance that we would become aware of all significant matters that
might be identified in an audit. Accordingly, we do not express an audit
opinion.
CONCLUSION
Based on our review, nothing has come to our attention that causes us to
believe that the interim financial report as at 30 June 2025 is not prepared,
in all material respects, in accordance with International Accounting Standard
34 Interim Financial Reporting.
KPMG Huazhen LLP
Certified Public Accountants
(Registered as a Third Country Auditor with the UK Financial Reporting
Council)
Beijing, China
28 August 2025
Consolidated Statement of Profit or Loss
For the Six Months Ended 30 June 2025 - unaudited
(Expressed in Renminbi ("RMB"))
Six months ended 30 June
NOTES 2025 2024
RMB'000 RMB'000
Revenue 3 80,757,434 79,520,332
Other income and gains 5 2,615,845 3,250,850
83,373,279 82,771,182
Operating expenses
Jet fuel costs (24,327,485) (27,132,269)
Employee compensation costs (17,849,218) (16,953,921)
Depreciation and amortisation (14,837,638) (14,025,285)
Take-off, landing and depot charges (10,613,810) (9,963,482)
Aircraft maintenance, repair and overhaul costs (7,292,075) (6,862,447)
Air catering charges (2,104,979) (1,973,435)
Aircraft and engine lease expenses (342,162) (261,132)
Other lease expenses (366,175) (346,900)
Other flight operation expenses (4,040,914) (3,263,760)
Selling and marketing expenses (2,410,378) (2,275,875)
General and administrative expenses (797,634) (780,314)
Impairment loss recognised on non-current assets (85,154) -
Net impairment loss recognised under expected credit loss model (2,087) (14,334)
(85,069,709) (83,853,154)
Loss from operations 6 (1,696,430) (1,081,972)
Finance income 285,792 245,615
Finance costs 7 (2,890,954) (3,265,473)
Share of results of associates 1,220,174 1,084,817
Share of results of joint ventures 117,208 91,360
Exchange gain/(losses), net 176,308 (360,422)
Loss before taxation (2,787,902) (3,286,075)
Income tax credit/(expense) 8 77,797 (252,536)
Loss for the period (2,710,105) (3,538,611)
Attributable to:
- Equity shareholders of the Company (1,804,820) (2,778,953)
- Non-controlling interests (905,285) (759,658)
(2,710,105) (3,538,611)
Loss per share
- Basic and diluted (RMB) 10 RMB(0.11) RMB(0.18)
The notes on pages 38 to 61 form part of this interim financial report.
Consolidated Statement of Profit or Loss
and Other Comprehensive Income
For the Six Months Ended 30 June 2025 - unaudited
(Expressed in RMB)
Six months ended 30 June
2025 2024
RMB'000 RMB'000
Loss for the period (2,710,105) (3,538,611)
Other comprehensive income for the period
Items that will not be reclassified to profit or loss:
- Fair value gain/(losses) on investments in equity instruments 42,421 (86,078)
at fair value through other comprehensive income
- Remeasurement of net defined benefit liability 9 (5,741)
- Share of other comprehensive income of an associate (556) (361)
- Income tax (expense)/credit relating to items that will not be (10,291) 21,519
reclassified to profit or loss
Items that may be reclassified subsequently to profit or loss:
- Fair value (losses)/gains on investments in debt instruments (10,644) 14,619
at fair value through other comprehensive income
- Share of other comprehensive income of associates and joint ventures (362,428) 232,792
- Exchange differences on translation of foreign operations (362,807) 137,205
- Impairment loss recognised on investments in debt instruments (235) (236)
at fair value through other comprehensive income
- Income tax credit/(expense) relating to items that may be 2,720 (3,597)
reclassified subsequently to profit or loss
Other comprehensive income for the period, net of tax (701,811) 310,122
Total comprehensive income for the period (3,411,916) (3,228,489)
Attributable to:
- Equity shareholders of the Company (2,504,603) (2,433,924)
- Non-controlling interests (907,313) (794,565)
(3,411,916) (3,228,489)
The notes on pages 38 to 61 form part of this interim financial report.
Consolidated Statement of
Financial Position
At 30 June 2025 - unaudited
(Expressed in RMB)
At 30 June At 31 December
NOTES 2025 2024
RMB'000 RMB'000
Non-current assets
Property, plant and equipment 11 124,153,264 122,180,871
Right-of-use assets 11 112,987,896 118,832,142
Investment properties 676,264 693,059
Intangible assets 106,584 106,563
Goodwill 4,095,732 4,095,732
Interests in associates 12 14,285,989 14,632,923
Interests in joint ventures 2,486,232 2,423,853
Advance payments for aircraft and flight equipment 23,334,608 24,689,737
Deposits for aircraft under leases 532,947 526,004
Equity instruments at fair value through 2,073,694 1,791,273
other comprehensive income
Debt instruments at fair value through 1,290,262 1,426,851
other comprehensive income
Deferred tax assets 13,159,241 12,959,766
Other non-current assets 606,259 704,196
299,788,972 305,062,970
Current assets
Inventories 4,752,910 4,224,992
Accounts receivable 13 4,783,169 3,670,252
Bills receivable 6,402 7,785
Prepayments, deposits and other receivables 14 5,333,200 5,223,257
Financial assets at fair value through profit or loss 153,221 37,559
Time deposits and restricted deposits 2,591,176 1,428,429
Cash and cash equivalents 25,331,101 21,039,472
Assets held for sale 147,048 94,829
Other current assets 4,651,923 4,960,628
47,750,150 40,687,203
Total assets 347,539,122 345,750,173
The notes on pages 38 to 61 form part of this interim financial report.
NOTES At 30 June At 31 December
2025
2024
RMB'000 RMB'000
Current liabilities
Air traffic liabilities (11,388,539) (11,098,740)
Accounts payable 15 (19,653,382) (18,869,784)
Dividends payable (98,000) (98,000)
Other payables and accruals 16 (15,056,991) (13,437,502)
Advance (1,264) (36,270)
Current taxation (42,483) (130,653)
Lease liabilities 17 (16,666,649) (17,464,654)
Interest-bearing borrowings 18 (60,029,434) (74,544,705)
Provision for return condition checks (1,716,556) (758,575)
Contract liabilities (1,555,806) (1,171,172)
(126,209,104) (137,610,055)
Net current liabilities (78,458,954) (96,922,852)
Total assets less current liabilities 221,330,018 208,140,118
Non-current liabilities
Lease liabilities 17 (53,759,875) (59,134,187)
Interest-bearing borrowings 18 (105,722,598) (84,836,960)
Provision for return condition checks (19,507,071) (19,228,054)
Provision for early retirement benefit obligations (354) (359)
Long-term payables (720,589) (727,741)
Contract liabilities (2,650,359) (2,565,188)
Defined benefit obligations (178,238) (186,700)
Deferred income (425,901) (406,943)
Deferred tax liabilities (135,036) (128,016)
(183,100,021) (167,214,148)
NET ASSETS 38,229,997 40,925,970
The notes on pages 38 to 61 form part of this interim financial report.
NOTES At 30 June At 31 December
2025
2024
RMB'000 RMB'000
CAPITAL AND RESERVES
Issued capital 19 17,448,421 17,448,421
Reserves 25,175,148 27,679,751
Total equity attributable to equity shareholders of the Company 42,623,569 45,128,172
Non-controlling interests (4,393,572) (4,202,202)
TOTAL EQUITY 38,229,997 40,925,970
Approved and authorised for issue by the board of directors on 28 August 2025.
Ma Chongxian Wang Mingyuan
Director Director
The notes on pages 38 to 61 form part of this interim financial report.
Consolidated Statement of
Changes in Equity
For the Six Months Ended 30 June 2025 - unaudited
(Expressed in RMB)
Attributable to equity shareholders of the Company
Note Issued Capital Reserve General reserve Foreign Accumulated losses Subtotal Non- Total
capital
reserve and
funds
and safety fund
exchange
controlling
equity
revaluation
translation
interests
reserve
reserve
RMB'000 RMB'000 RMB'000 RMB'000 RMB'000 RMB'000 RMB'000 RMB'000 RMB'000
As at 1 January 2025 17,448,421 46,832,986 11,564,287 177,506 (743,025) (30,152,003) 45,128,172 (4,202,202) 40,925,970
Changes in equity for the
six months ended 30 June 2025
Loss for the period - - - - - (1,804,820) (1,804,820) (905,285) (2,710,105)
Other comprehensive income - (335,298) - - (364,485) - (699,783) (2,028) (701,811)
Total comprehensive income - (335,298) - - (364,485) (1,804,820) (2,504,603) (907,313) (3,411,916)
Capital increase by non-controlling - - - - - - - 715,943 715,943
shareholders
As at 30 June 2025 17,448,421 46,497,688 11,564,287 177,506 (1,107,510) (31,956,823) 42,623,569 (4,393,572) 38,229,997
As at 1 January 2024 16,200,793 40,368,217 11,564,287 156,687 (1,176,240) (29,907,769) 37,205,975 (1,941,966) 35,264,009
Changes in equity for the
six months ended 30 June 2024
Loss for the period - - - - - (2,778,953) (2,778,953) (759,658) (3,538,611)
Other comprehensive income - 208,333 - - 136,696 - 345,029 (34,907) 310,122
Total comprehensive income - 208,333 - - 136,696 (2,778,953) (2,433,924) (794,565) (3,228,489)
Issue of new shares 19 392,927 1,422,815 - - - - 1,815,742 - 1,815,742
Dividends paid to non-controlling - - - - - - - (2,603) (2,603)
shareholders
Others - 17 - - - - 17 - 17
As at 30 June 2024 16,593,720 41,999,382 11,564,287 156,687 (1,039,544) (32,686,722) 36,587,810 (2,739,134) 33,848,676
The notes on pages 38 to 61 form part of this interim financial report.
Condensed Consolidated Statement of
Cash Flows
For the Six Months Ended 30 June 2025 - unaudited
(Expressed in RMB)
Six months ended 30 June
2025 2024
RMB'000 RMB'000
Operating activities
Cash generated from operations 17,919,320 17,747,919
Income tax paid (88,170) (91,754)
Interest paid (3,003,178) (3,403,093)
Net cash generated from operating activities 14,827,972 14,253,072
Investing activities
Proceeds from disposal of property, plant and equipment, right-of-use assets 716,817 775,072
and assets held for sale
Dividends received 937,323 807,696
Proceeds from disposal of debt instruments at fair value through 500,419 374,465
other comprehensive income
Purchase of debt instruments at amortised cost (141,899) (1,000,000)
Purchase of property, plant and equipment (6,435,935) (4,779,369)
Advance payments for aircraft and flight equipment (1,783,732) (2,702,445)
Placement of term deposits (1,135,398) (1,172,268)
Investment in a joint venture (44,850) (148,991)
Purchase of debt instruments and equity instruments at fair value through (240,000) (229,639)
other comprehensive income
Net cash flows arising from other investing activities 289,216 (101,865)
Net cash used in investing activities (7,338,039) (8,177,344)
Financing activities
Proceeds from new bank loans and other borrowings 27,689,016 18,984,932
Proceeds from issue of new shares - 1,816,860
Proceeds from issuance of corporate bonds and short-term commercial papers 26,500,000 3,000,000
Capital contribution from a non-controlling shareholder of a subsidiary 715,943 -
Repayment of bank loans and other borrowing (39,738,040) (15,678,403)
Repayment of leases liabilities (9,185,178) (9,275,056)
Transaction costs attributable to issue of new shares - (1,118)
Dividends paid to non-controlling shareholders - (747)
Repayment of corporate bonds and short-term commercial papers (9,200,000) -
Net cash used in financing activities (3,218,259) (1,153,532)
Net increase in cash and cash equivalents 4,271,674 4,922,196
Cash and cash equivalents at 1 January 21,039,472 15,016,804
Effect of foreign exchanges rates changes 19,955 24,866
Cash and cash equivalents at 30 June 25,331,101 19,963,866
The notes on pages 38 to 61 form part of this interim financial report.
Notes to the Unaudited
Interim Financial Report
For the Six Months Ended 30 June 2025
(Expressed in RMB)
1. CORPORATE INFORMATION
Air China Limited (the "Company") was established as a joint stock limited
company in Beijing, the People's Republic of China (the "PRC"), on 30
September 2004. The registered address of the Company is at 1st Floor - 9th
Floor 101, Building 1, 30 Tianzhu Road, Shunyi District, Beijing, the PRC. The
Company's H shares are listed on The Stock Exchange of Hong Kong Limited (the
"HKSE") and the London Stock Exchange (the "LSE") while the Company's A shares
are listed on the Shanghai Stock Exchange. In the opinion of the directors of
the Company (the "Directors"), the Company's parent and ultimate holding
company is China National Aviation Holding Corporation Limited ("CNAHC"), a
PRC state-owned enterprise under the supervision of the State Council.
The principal activities of the Company and its subsidiaries (together
referred to as the "Group") are provision of airline and airline-related
services, including aircraft engineering services and airport ground handling
services.
The interim consolidated financial report is presented in Renminbi ("RMB"),
the functional currency of the Company, and all values are rounded to the
nearest thousand ('000) unless otherwise indicated.
2. BASIS OF PREPARATION
The interim financial report for the six months ended 30 June 2025 has been
prepared in accordance with the applicable disclosure provisions of the Rules
Governing the Listing of Securities on The Stock Exchange of Hong Kong
Limited, including compliance with International Accounting Standard ("IAS")
34, Interim Financial Reporting, issued by the International Accounting
Standards Board. It was authorised for issue on 28 August 2025.
The interim financial report has been prepared in accordance with the same
accounting policies adopted in the 2024 annual financial statements. The Group
did not have any changes to its accounting policies from those applied in
2024.
This interim financial report contains condensed consolidated financial
statements and selected explanatory notes. The notes include an explanation of
events and transactions that are significant to an understanding of the
changes in the Group's financial position and performance since the 2024
annual financial statements. The condensed consolidated interim financial
statements and notes thereon do not include all of the information required
for a full set of financial statements prepared in accordance with IFRS
Accounting Standards.
The interim financial report is unaudited, but has been reviewed by KPMG in
accordance with International Standard of Review Engagements 2410, Review of
interim financial information performed by the independent auditor of the
entity, issued by the International Auditing and Assurance Standards Board.
KPMG's independent review report to the Board of Directors is included in page
30.
As at 30 June 2025, the Group's current liabilities exceeded its current
assets by approximately RMB78,459 million. The liquidity of the Group is
primarily dependent on its ability to maintain cash inflows from operations
and sufficient financing to meet its financial obligations as and when they
fall due. Considering the Company's sources of liquidity and the unutilised
bank facilities of RMB180,093 million as at 30 June 2025, the Directors
believe that the Group has sufficient sources of financing to enable it to
operate, as well as to meet its liabilities as and when they become due, and
to support its capital expenditures in the foreseeable future of not less than
twelve months from the end of the reporting period. Accordingly, this interim
financial report has been prepared on a going concern basis.
3. REVENUE
Disaggregation of revenue
Six months ended 30 June
2025 2024
RMB'000 RMB'000
Revenue from contracts with customers
Airline operations
Passenger 73,196,376 73,137,116
Cargo and mail 3,577,468 3,328,452
Others 921,734 859,569
77,695,578 77,325,137
Other operations
Aircraft engineering income 2,825,795 2,023,821
Others 61,703 57,751
2,887,498 2,081,572
Sub-total 80,583,076 79,406,709
Rental income (included in revenue of airline operations segment) 174,358 113,623
Total revenue 80,757,434 79,520,332
4. SEGMENT INFORMATION
The Group's businesses are structured and managed, according to the nature of
its operations and the services it provides. The Group has the following
reportable operating segments:
(a) the "airline operations" segment which mainly comprises the
provision of air passenger and air cargo services; and
(b) the "other operations" segment which comprises the provision
of aircraft engineering and other airline-related services.
Inter-segment sales and transfers are transacted with reference to the then
prevailing market prices.
The Company's chief operating decision maker monitors the results, assets and
liabilities of the Group based on the financial results prepared in accordance
with the Accounting Standards for Business Enterprises issued by the Ministry
of Finance of the PRC ("CASs"). As such, the segment information is presented
in accordance with CAS with reconciliation to financial information presented
in IFRS Accounting Standards.
4. SEGMENT INFORMATION (continued)
For the six months ended 30 June 2025
Airline Other Elimination Total
operations
operations
RMB'000 RMB'000 RMB'000 RMB'000
Revenue
Sales to external customers 77,869,936 2,887,498 - 80,757,434
Inter-segment sales 106,983 4,426,862 (4,533,845) -
Segment revenue under CASs and 77,976,919 7,314,360 (4,533,845) 80,757,434
IFRS Accounting Standards
Segment results before taxation
(Loss)/profit before taxation for reportable segments under CASs (3,185,233) 388,330 7,862 (2,789,041)
Effect of differences between IFRS Accounting Standards and CASs 1,139
Loss before taxation for the period under IFRS Accounting Standards (2,787,902)
For the six months ended 30 June 2024
Airline Other
operations operations Elimination Total
RMB'000 RMB'000 RMB'000 RMB'000
Revenue
Sales to external customers 77,438,760 2,081,572 - 79,520,332
Inter-segment sales 106,388 4,343,972 (4,450,360) -
Segment revenue under CASs and 77,545,148 6,425,544 (4,450,360) 79,520,332
IFRS Accounting Standards
Segment results before taxation
(Loss)/profit before taxation for reportable segments under CASs (3,715,694) 502,625 (77,722) (3,290,791)
Effect of differences between IFRS Accounting Standards and CASs 4,716
Loss before taxation for the period under IFRS Accounting Standards (3,286,075)
4. SEGMENT INFORMATION (continued)
As at 30 June 2025/31 December 2024
Airline Other
operations operations Elimination Total
RMB'000 RMB'000 RMB'000 RMB'000
Segment assets
Segment assets as at 30 June 2025 334,218,916 29,253,558 (15,914,966) 347,557,508
under CASs
Effect of differences between IFRS Accounting Standards and CASs (18,386)
Total assets as at 30 June 2025 under IFRS Accounting Standards 347,539,122
Segment assets as at 31 December 2024 under CASs 335,387,462 35,068,041 (24,686,091) 345,769,412
Effect of differences between IFRS Accounting Standards and CASs (19,239)
Total assets as at 31 December 2024 under IFRS Accounting Standards 345,750,173
Segment liabilities
Segment liabilities under CASs and
IFRS Accounting Standards
As at 30 June 2025 304,360,027 20,338,559 (15,389,461) 309,309,125
As at 31 December 2024 301,829,477 27,135,795 (24,141,069) 304,824,203
4. SEGMENT INFORMATION (continued)
Geographical information
The following tables present the Group's consolidated revenue to external
customers by geographical location for the six months ended 30 June 2025 and
2024:
Six months ended 30 June
2025 2024
RMB'000 RMB'000
Chinese Mainland 56,277,430 57,960,673
Hong Kong SAR, Macau SAR and Taiwan, China 2,539,842 2,484,032
International 21,940,162 19,075,627
80,757,434 79,520,332
In determining the Group's geographical information, revenue is based on the
origin and destination of each flight. Assets, which principally consist of
aircraft and ground equipment, supporting the Group's worldwide transportation
network, are mainly registered/located in Chinese Mainland. According to the
business demand, the Group flexibly allocates aircraft to match the need of
the route network. An analysis of the assets of the Group by geographical
distribution has therefore not been presented.
There was no individual customer that contributed 10% or more of the Group's
revenue for both periods presented.
5. OTHER INCOME AND GAINS
Six months ended 30 June
2025 2024
RMB'000 RMB'000
Co-operation routes income and subsidy income 2,407,102 2,232,415
Gains on disposal of property, plant and equipment and 22,327 775,226
right-of-use assets
Loss on disposal of assets held for sale - (7,907)
Dividend income 13,131 5,935
Others 173,285 245,181
2,615,845 3,250,850
6. LOSS FROM OPERATIONS
The Group's loss from operations is arrived at after charging:
Six months ended 30 June
2025 2024
RMB'000 RMB'000
Depreciation of property, plant and equipment 7,072,151 6,505,225
Depreciation of right-of-use assets 7,748,718 7,503,289
Depreciation of investment properties 16,767 16,767
Amortisation of intangible assets 2 4
7. FINANCE COSTS
Six months ended 30 June
2025 2024
RMB'000 RMB'000
Interest on interest-bearing borrowings 1,951,327 2,215,565
Interest on lease liabilities 1,114,236 1,192,838
Imputed interest expenses on defined benefit obligations 5,147 2,628
3,070,710 3,411,031
Less: Interest capitalised (179,756) (145,558)
2,890,954 3,265,473
The interest capitalisation rates during the period ranged from 1.95% to 2.80%
(six months ended 30 June 2024: 2.40% to 4.45%) per annum relating to the
costs of related borrowings during the period.
8. INCOME TAX (CREDIT)/EXPENSE
Six months ended 30 June
2025 2024
RMB'000 RMB'000
Current income tax:
- Chinese Mainland 120,343 201,017
- Other tax jurisdictions 895 887
Under provision in respect of prior years 1,525 431
Deferred tax (200,560) 50,201
(77,797) 252,536
Under the Law of the PRC on Enterprise Income Tax (the "EIT Law") and
Implementation Regulation of the EIT Law, except for certain branches and
subsidiaries of the Group which are taxed at a preferential rate of 15%, all
group companies located in Chinese Mainland are subject to an income tax rate
of 25% (six months ended 30 June 2024: 25%). Subsidiaries in Hong Kong SAR,
China are taxed at profits tax rate of 16.5%, and subsidiaries in Macau SAR,
China are taxed at profits tax rate of 12%, for both periods.
9. DIVIDENDS
In accordance with the Company's articles of association, the profit after tax
of the Company for the purpose of dividend distribution is based on the lesser
of (i) the profit determined in accordance with CASs; and (ii) the profit
determined in accordance with IFRSs.
(a) Dividends payable to equity shareholders attributable to the
interim period
No interim dividend has been declared by the Directors for the six months
ended 30 June 2025 (six months ended 30 June 2024: Nil).
(b) Dividends payable to equity shareholders attributable to the
previous financial year, approved during the current interim period
No dividend has been declared by the Directors for the financial year of 2024
during the six months ended 30 June 2025 (six months ended 30 June 2024: Nil).
10. LOSS PER SHARE
The calculation of the basic loss per share is based on the loss attributable
to ordinary equity shareholders of the Company of RMB1,805 million (six months
ended 30 June 2024: RMB2,779 million) and the weighted average number of
16,658,566,736 (six months ended 30 June 2024: 15,723,985,056) ordinary shares
in issue during the period, as adjusted to reflect the effect of reciprocal
shareholding with Cathay Pacific Airways Limited ("Cathay Pacific") (Note 12).
The Group had no potential ordinary shares in issue during both periods. The
basic loss per share is the same as the diluted loss per share.
11. PROPERTY, PLANT AND EQUIPMENT AND RIGHT-OF-USE ASSETS
(a) Property, plant and equipment
During the six months ended 30 June 2025, additions to the cost of property,
plant and equipment were RMB7,581 million (six months ended 30 June 2024:
RMB6,879 million). Property, plant and equipment with carrying amount of
RMB738 million were disposed of during the six months ended 30 June 2025 (six
months ended 30 June 2024: RMB306 million).
During the six months ended 30 June 2025, the Group recognised impairment loss
amounting to approximately RMB85 million (six months ended 30 June 2024: Nil)
for certain aircraft held for sale. The recoverable amount is estimated based
on fair value less cost of disposal. The fair value is determined based on
depreciated replacement cost method. The fair value measurement falls into
level 3 of the fair value hierarchy.
As at 30 June 2025, the Group was in the process of applying for the title
certificates of certain buildings with an aggregate net book value of
approximately RMB6,126 million (31 December 2024: RMB6,906 million). The
Directors are of the opinion that the Group is entitled to lawfully and
validly occupy and use the above-mentioned buildings.
(b) Right-of-use assets
During the six months ended 30 June 2025, additions to the right-of-use assets
were RMB5,531 million (six months ended 30 June 2024: RMB4,970 million).
As at 30 June 2025, the Group had future undiscounted lease payments under
non-cancellable leases of RMB2 million (31 December 2024: RMB188 million),
which was not recognised as lease liabilities since leases are yet to be
commenced.
12. INTERESTS IN ASSOCIATES
At 30 June At 31 December
2025
2024
RMB'000 RMB'000
Listed shares in Hong Kong SAR, China 13,950,934 14,310,718
Unlisted investments 335,055 322,205
14,285,989 14,632,923
Market value of listed shares 18,837,718 17,054,995
Summarised financial information in respect of Cathay Pacific Airways Limited
("Cathay Pacific"), the only individually material associate of the Group, and
a reconciliation to the carrying amount in the condensed consolidated
financial statements, are set out below. The summarised financial information
below represents amounts shown in the associate's consolidated financial
statements.
12. INTERESTS IN ASSOCIATES (continued)
Cathay Pacific
At 30 June At 31 December
2025
2024
RMB'000 RMB'000
Gross amounts of the associate's
Current assets 16,798,119 17,822,566
Non-current assets 138,508,790 140,756,228
Current liabilities (48,196,558) (46,523,324)
Non-current liabilities (59,998,102) (63,431,888)
Equity attributable to equity shareholders of the associate 46,951,745 48,130,929
Six months ended 30 June
2025 2024
RMB'000 RMB'000
Revenue 49,909,699 45,112,358
Profit for the period 3,355,251 3,285,843
Other comprehensive income (1,233,291) 706,643
Total comprehensive income 2,121,960 3,992,486
At 30 June At 31 December
2025
2024
RMB'000 RMB'000
Reconciled to the Group's interests in the associate
Gross amounts of net assets of the associate attributable 46,951,745 48,130,929
to equity shareholders
Group's effective interest 29.98% 29.98%
Group's share of net assets of the associate 14,076,133 14,429,653
Elimination of reciprocal shareholding (2,713,285) (2,747,008)
Goodwill 2,588,086 2,628,073
Carrying amount in the condensed consolidated financial statements 13,950,934 14,310,718
12. INTERESTS IN ASSOCIATES (continued)
Aggregate information of associates that are not individually material:
At 30 June At 31 December
2025
2024
RMB'000 RMB'000
Aggregate carrying amounts of individually immaterial 335,055 322,205
associates in the condensed consolidated financial statements
Six months ended 30 June
2025 2024
RMB'000 RMB'000
Aggregate amounts of the Group's share of those associates'
- Profit for the period 46,325 17,448
- Other comprehensive income for the period (1,184) 440
Total comprehensive income for the period 45,141 17,888
13. ACCOUNTS RECEIVABLE
The ageing analysis of the accounts receivable as at the end of the reporting
period, based on the transaction date, net of allowance for expected credit
losses, was as follows:
At 30 June At 31 December
2025
2024
RMB'000 RMB'000
Within 30 days 3,640,790 2,963,962
31 to 60 days 499,885 147,934
61 to 90 days 76,653 139,120
Over 90 days 565,841 419,236
4,783,169 3,670,252
14. PREPAYMENTS, DEPOSITS AND OTHER RECEIVABLES
An analysis of prepayments, deposits and other receivables as at the end of
the reporting period, net of allowance for expected credit losses, was as
follows:
At 30 June At 31 December
2025
2024
RMB'000 RMB'000
Manufacturers' credits 1,049,963 1,311,700
Prepayments of jet fuel 161,119 116,961
Other prepayments 362,982 345,284
1,574,064 1,773,945
Deposits and other receivables 3,759,136 3,449,312
5,333,200 5,223,257
15. ACCOUNTS PAYABLE
The ageing analysis of the accounts payable, based on the transaction date, as
at the end of the reporting period was as follows:
At 30 June At 31 December
2025
2024
RMB'000 RMB'000
Within 30 days 8,148,551 8,354,764
31 to 60 days 2,286,119 2,009,755
61 to 90 days 4,623,235 4,806,725
Over 90 days 4,595,477 3,698,540
19,653,382 18,869,784
16. OTHER PAYABLES AND ACCRUALS
An analysis of other payables and accruals as at the end of the reporting
period was as follows:
At 30 June At 31 December
2025
2024
RMB'000 RMB'000
Accrued salaries, wages and benefits 3,567,517 3,507,037
Payables for construction in progress 1,039,110 1,365,753
Other tax payable 407,432 524,754
Deposits received from sales agents 750,753 593,809
Current portion of long-term payables 2,252 2,377
Deposits received by China National Aviation Finance Co., Ltd. ("CNAF"), a 6,694,941 4,891,502
subsidiary of the Company, from related parties
Others 2,594,986 2,552,270
15,056,991 13,437,502
17. LEASE LIABILITIES
The Group has obligations under lease agreements expiring from the second half
of 2025 to 2035 (31 December 2024: 2025 to 2033). An analysis of the lease
payments as at the end of the reporting period, together with the present
values of the lease payments which are principally denominated in foreign
currencies, is as follows:
At 30 June 2025 At 31 December 2024
Present values Present values
Lease of Lease of
payments lease payments payments lease payments
RMB'000 RMB'000 RMB'000 RMB'000
Amounts repayable
- Within 1 year 18,454,576 16,666,649 19,536,185 17,464,654
- After 1 year but within 2 years 14,922,323 13,635,448 16,251,571 14,744,586
- After 2 years but within 5 years 27,925,821 26,012,476 31,277,456 28,948,310
- After 5 years 14,683,034 14,111,951 16,181,484 15,441,291
Total 75,985,754 70,426,524 83,246,696 76,598,841
Less: Amounts representing future (5,559,230) (6,647,855)
finance costs
Present values of lease payments 70,426,524 76,598,841
Less: Portion classified as current liabilities (16,666,649) (17,464,654)
Non-current portion 53,759,875 59,134,187
18. INTEREST-BEARING BORROWINGS
At 30 June At 31 December
2025
2024
RMB'000 RMB'000
Bank loans and other borrowings:
- Secured 4,326,546 3,583,562
- Unsecured 125,695,735 137,370,418
130,022,281 140,953,980
Corporate bonds and short-term commercial papers:
- Unsecured 35,729,751 18,427,685
165,752,032 159,381,665
At 30 June At 31 December
2025
2024
RMB'000 RMB'000
Bank loans and other borrowings repayable:
- Within 1 year 47,299,683 62,117,020
- After 1 year but within 2 years 31,821,960 30,458,552
- After 2 years but within 5 years 50,220,569 43,561,628
- After 5 years 680,069 4,816,780
130,022,281 140,953,980
Corporate bonds and short-term commercial papers repayable:
- Within 1 year 12,729,751 12,427,685
- After 1 year but within 2 years 1,000,000 -
- After 2 years but within 5 year 20,000,000 6,000,000
- After 5 years 2,000,000 -
35,729,751 18,427,685
Total interest-bearing borrowings 165,752,032 159,381,665
Less: portion classified as current liabilities (60,029,434) (74,544,705)
Non-current portion 105,722,598 84,836,960
18. INTEREST-BEARING BORROWINGS (continued)
As at 30 June 2025, the interest rates of the Group's bank loans and other
borrowings ranged from 1.00% to 4.38% (31 December 2024: 1.60% to 4.38%) per
annum.
As at 30 June 2025, the interest rates of the Group's corporate bonds and
short-term commercial papers ranged from 1.76% to 2.54% (31 December 2024:
2.03% to 3.46%) per annum.
As at 30 June 2025, the Group's bank loans of approximately RMB4,327 million
(31 December 2024: RMB3,584 million) were secured by:
At 30 June At 31 December
2025
2024
RMB'000 RMB'000
Aircraft and flight equipment, buildings and other equipment 4,669,069 3,825,292
Land use rights 23,039 23,433
4,692,108 3,848,725
19. ISSUED CAPITAL
The numbers of shares of the Company and their nominal values as at 30 June
2025 and 31 December 2024 are as follows:
30 June 2025 31 December 2024
Number Nominal Number Nominal
of shares value of shares value
RMB'000 RMB'000
Registered, issued and fully paid:
- H shares of RMB1.00 each:
Tradable 4,562,683,364 4,562,683 4,562,683,364 4,562,683
Tradable-restricted (Note 1) 392,927,308 392,927 392,927,308 392,927
- A shares of RMB1.00 each:
Tradable 11,638,109,474 11,638,109 11,638,109,474 11,638,109
Tradable-restricted (Note 2) 854,700,854 854,701 854,700,854 854,701
17,448,421,000 17,448,421 17,448,421,000 17,448,421
All shares rank equally with regard to the company's residual assets.
Note 1: On 7 February 2024, the Company issued 392,927,308 new H shares to
China National Aviation Corporation (Group) Limited ("CNACG", a wholly-owned
subsidiary of CNAHC) at the price of HKD5.09 per share with par value of RMB1.
Total proceeds of the issuance were HKD2,000 million and the net proceeds were
RMB1,816 million, after deducting issue cost of RMB1 million (excluding
value-added tax), of which RMB393 million were recognised as issued capital
and RMB1,423 million were recognised as capital reserve. Upon completion of
the issuance, the new H shares are subject to a lock-up period of 36 months.
Note 2: On 17 July 2024, 614,525,150 A share subscribed by CNAHC were released
from restriction.
On 19 November 2024, the Company issued 854,700,854 new A shares to CNAHC at
the price of RMB7.02 per share with par value of RMB1. Total proceeds of the
issuance were RMB6,000 million and the net proceeds were 5,996 million, after
deducting issuance cost of RMB4 million (excluding value-added tax), of which
RMB855 million were recognised as issued capital and RMB5,141 million were
recognised as capital reserve. Upon completion of the issuance, the new A
shares are subject to a lock-up period of 36 months.
20. OTHER EVENTS
Pursuant to the restructuring of CNAHC in preparation for the listing of the
Company's H shares on the HKSE and the LSE, the Company entered to a
restructuring agreement (the "Restructuring Agreement") with CNAHC and CNACG
on 20 November 2004. According to the Restructuring Agreement, except for
liabilities constituting or arising out of or relating to business undertaken
by the Company after the restructuring, no liabilities would be assumed by the
Company and the Company would not be liable, whether severally, or jointly and
severally, for debts and obligations incurred prior to the restructuring by
CNAHC and CNACG. The Company has also undertaken to indemnify CNAHC and CNACG
against any damage suffered or incurred by CNAHC and CNACG as a result of any
breach by the Company of any provision of the Restructuring Agreement.
21. FINANCIAL INSTRUMENTS
(a) Financial assets measured at fair value
(i) Fair value hierarchy
The following table presents the fair value of the Group's financial
instruments measured at the end of the reporting period on a recurring basis,
categorised into the three-level fair value hierarchy as defined in IFRS 13
Fair value measurement. The level into which a fair value measurement is
classified is determined with reference to the observability and significance
of the inputs used in the valuation technique as follows:
• Level 1 fair value measurements are based on quoted
prices (unadjusted) in active market for identical assets or liabilities;
• Level 2 fair value measurements are those derived from
inputs other than quoted prices included within Level 1 that are observable
for the asset or liability, either directly (i.e. as prices) or indirectly
(i.e. derived from prices); and
• Level 3 fair value measurements are those derived from
valuation techniques that include inputs for the asset or liability that are
not based on observable market data (unobservable inputs).
Fair value at Fair value measurements
30 June as at 30 June 2025 categorised into
2025 Level 1 Level 2 Level 3
RMB'000 RMB'000 RMB'000 RMB'000
Equity instruments at fair value through other comprehensive income 2,073,694 - - 2,073,694
("FVTOCI")
Debt instruments at FVTOCI (including debt instruments at FVTOCI included in 1,482,024 - 1,482,024 -
other current assets)
Financial assets at fair value through profit or loss 153,221 153,221 - -
Total financial assets at fair value 3,708,939 153,221 1,482,024 2,073,694
21. FINANCIAL INSTRUMENTS (continued)
(a) Financial assets measured at fair value (continued)
(i) Fair value hierarchy (continued)
Fair value at Fair value measurements
31 December as at 31 December 2024 categorised into
2024 Level 1 Level 2 Level 3
RMB'000 RMB'000 RMB'000 RMB'000
Equity instruments at FVTOCI 1,791,273 - - 1,791,273
Debt instruments at FVTOCI (including debt instruments at FVTOCI included in 1,476,713 - 1,476,713 -
other current assets)
Financial assets at fair value through profit or loss 37,559 37,559 - -
Total financial assets at fair value 3,305,545 37,559 1,476,713 1,791,273
During the six months ended 30 June 2025, there were no transfers between
Level 1 and Level 2, or transfers into or out of Level 3. The Group's policy
is to recognise transfers between levels of fair value hierarchy as at the end
of the reporting period in which they occur.
(ii) Valuation techniques and inputs used in Level 2 fair value
measurements
The financial instruments classified within Level 2 of the fair value
hierarchy are debt investments, the fair value is of which was estimated based
on the publicly available indicative price.
(iii) Valuation techniques and inputs used in Level 3 fair value
measurements
As at 30 June 2025, the fair value of the equity interest in unlisted
securities of a listed company amounting to approximately RMB254 million (as
at 31 December 2024: RMB254 million) was estimated by reference to the quoted
prices in an active market with an adjustment of discount for lack of
marketability.
As at 30 June 2025, the fair value of private equity instruments at FVTOCI
amounting to approximately RMB1,819 million (as at 31 December 2024: RMB1,537
million) have been estimated using a market-based valuation technique, which
is derived by reference to observable valuation measures for comparable
companies, and with the adjustment of discount for lack of marketability.
The changes in Level 3 financial assets are analysed below:
2025 2024
RMB'000 RMB'000
As at 1 January 1,791,273 1,547,986
Purchase 240,000 360,000
Change in fair value recognised in other comprehensive income 42,421 (86,078)
As at 30 June 2,073,694 1,821,908
21. FINANCIAL INSTRUMENTS (continued)
(b) Fair values of financial assets and liabilities carried at other
than fair value
Except as detailed in the following table, the Directors consider that the
carrying amounts of financial assets and liabilities measured at amortised
cost in these condensed consolidated financial statements approximate their
fair values.
Carrying amounts Fair values
As at As at As at As at
30 June 31 December 30 June 31 December
2025 2024 2025 2024
RMB'000 RMB'000 RMB'000 RMB'000
Financial liabilities
- Corporate bonds
(fixed rate) 26,188,123 15,416,838 26,068,606 15,283,291
The fair value measurement of corporate bonds falls into level 2 of the fair
value hierarchy.
22. COMMITMENTS
(a) Capital commitments
The Group had the following amounts of contractual commitments for the
acquisition and construction of property, plant and equipment as at the end of
the reporting period:
At 30 June At 31 December
2025
2024
RMB'000 RMB'000
Contracted, but not provided in the consolidated financial statements 93,200,377 95,175,219
22. COMMITMENTS (continued)
(b) Investment commitments
The Group had the following amounts of investment commitments as at the end of
the reporting period:
At 30 June At 31 December
2025
2024
RMB'000 RMB'000
Contracted, but not provided for:
- investment commitment to joint ventures 266,658 312,695
In 2012, the Company entered into an agreement with a joint venture as its 50%
shareholder, with a total investment commitment of USD5 million. As at 30 June
2025, the Company has invested United State Dollar ("USD") 1.5 million (31
December 2024: USD1.5 million) and committed to invest USD3.5 million (31
December 2024: USD3.5 million) in the future.
In 2022, the Company entered into an agreement with a joint venture as its 50%
shareholder, with a total investment commitment of USD95 million. As at 30
June 2025, the Company has invested USD61.25 million (31 December 2024: USD55
million) and committed to invest USD33.75 million (31 December 2024: USD40
million) in the future.
23. RELATED PARTY TRANSACTIONS
(a) During the period, the Group had the following significant
transactions with (i) CNAHC, its subsidiaries (other than the Group), joint
ventures and associates (collectively, the "CNAHC Group"); (ii) its joint
ventures and its associates:
(i) Transactions with related parties
Six months ended 30 June
2025 2024
RMB'000 RMB'000
Service provided to the CNAHC Group:
Transportation service fee on the passenger aircraft cargo business 3,326,422 3,009,102
Aircraft maintenance income 240,939 150,046
Land and buildings rental income 113,269 81,322
Ground services income 100,680 71,872
Pilot transfer income - 49,220
Government charter flights services 17,831 36,906
Air catering, onboard supplies and aircraft parts income 28,776 30,060
Income from advertising media business 7,259 6,786
Sales commission income 4,552 5,972
Trademark licensing income 4,656 4,660
Aviation communication income 10,730 1,185
Others 70,082 55,025
3,925,196 3,502,156
23. RELATED PARTY TRANSACTIONS (continued)
(a) During the period, the Group had the following significant
transactions with (i) CNAHC, its subsidiaries (other than the Group), joint
ventures and associates (collectively, the "CNAHC Group"); (ii) its joint
ventures and its associates: (continued)
(i) Transactions with related parties (continued)
Six months ended 30 June
2025 2024
RMB'000 RMB'000
Service provided by the CNAHC Group:
Airport ground services, take-off, landing and 598,007 757,051
depot expenses
Air catering and onboard supplies charges 828,068 739,499
Aviation communication expenses 399,950 407,196
Other procurement and maintenance 243,313 291,220
Interest expenses 126,325 196,418
Management fees 182,278 173,226
Media advertisement expenses 66,088 64,056
Repair and maintenance costs 34,673 25,093
Expense relating to short-term leases and 18,279 15,644
leases of low-value assets
Sales commission expenses - 193
Others 24,789 14,524
2,521,770 2,684,120
Loans to the CNAHC Group by CNAF:
(Repayments)/advances of loans (80,084) 105,000
Interest income 3,374 4,413
Deposits from the CNAHC Group received by CNAF:
Increase in deposits received 1,789,284 730,815
Interest expenses 39,546 30,327
As a lessee with CNAHC Group:
Additions to right-of-use assets and lease liabilities on new leases 1,215,895 1,665,731
Lease payments paid 1,324,048 1,331,248
Interest on lease liabilities 201,424 292,543
23. RELATED PARTY TRANSACTIONS (continued)
(a) During the period, the Group had the following significant
transactions with (i) CNAHC, its subsidiaries (other than the Group), joint
ventures and associates (collectively, the "CNAHC Group"); (ii) its joint
ventures and its associates: (continued)
(i) Transactions with related parties (continued)
Six months ended 30 June
2025 2024
RMB'000 RMB'000
Asset transfers with CNAHC Group
Sales of assets 89,801 66,481
Service provided to joint ventures and associates:
Aircraft maintenance income 116,780 109,020
Ground services income 18,568 29,286
Air catering, onboard supplies and aircraft parts income 204 4,182
Frequent-flyer programme income 2,019 1,562
Land and buildings rental income 832 797
Sales commission income 220 157
Others 223 702
138,846 145,706
Service provided by joint ventures and associates:
Repair and maintenance costs 2,588,414 1,507,998
Airport ground services, take-off, 373,540 215,333
landing and depot expenses
Other procurement and maintenance 15,323 17,319
Aviation communication expenses 2,210 2,153
Frequent-flyer programme expenses 2,504 1,958
Management fees 652 -
Sales commission expenses 204 216
Air catering and onboard supplies charges 23,734 8
Expenses relating to short-term leases 26,046 5
and leases of low-value assets
3,032,627 1,744,990
23. RELATED PARTY TRANSACTIONS (continued)
(a) During the period, the Group had the following significant
transactions with (i) CNAHC, its subsidiaries (other than the Group), joint
ventures and associates (collectively, the "CNAHC Group"); (ii) its joint
ventures and its associates: (continued)
(i) Transactions with related parties (continued)
Six months ended 30 June
2025 2024
RMB'000 RMB'000
Deposits from joint ventures and associates
received by CNAF:
Increase/(decrease) in deposits received 11,155 (3,229)
Interest expenses 305 327
The Directors are of the opinion that the above transactions were conducted in
the ordinary course of business of the Group.
(ii) Balances with related parties
At 30 June At 31 December
2025
2024
RMB'000 RMB'000
Outstanding balances with related parties*
Amount due from the ultimate holding company 170,572 152,422
Amounts due from associates 44,991 48,660
Amounts due from joint ventures 8,959 8,717
Amounts due from other related companies 1,460,926 1,295,098
Amount due to the ultimate holding company 10,205 6,515
Amounts due to associates 68,137 64,354
Amounts due to joint ventures 487,039 985,757
Amounts due to other related companies 15,358,707 16,040,882
* Outstanding balances with related parties exclude
borrowing balances with related parties and outstanding balances between CNAF
and related parties.
23. RELATED PARTY TRANSACTIONS (continued)
(a) During the period, the Group had the following significant
transactions with (i) CNAHC, its subsidiaries (other than the Group), joint
ventures and associates (collectively, the "CNAHC Group"); (ii) its joint
ventures and its associates: (continued)
(ii) Balances with related parties (continued)
Except for lease liabilities, the above outstanding balances with related
parties are unsecured, interest-free and repayable within one year or have no
fixed terms of repayment.
At 30 June At 31 December
2025 2024
RMB'000 RMB'000
Outstanding borrowing balances with related parties
Interest-bearing borrowings
- Due to the ultimate holding company 5,885,000 10,792,957
- Due to other related companies 300,000 -
Outstanding balances between CNAF and
related parties
(1) Outstanding balances between CNAF and
CNAHC Group
Loans granted 208,000 288,000
Deposits received 6,649,507 4,879,173
Interest payable to related parties 30,764 11,815
Interest receivable from related parties 139 223
(2) Outstanding balances between CNAF and joint
ventures and associates of the Group
Deposits received 14,644 3,487
Interest payable to related parties 26 27
The outstanding balances between CNAF and related parties represent loans to
related parties or deposits received by CNAF from related parties. The
applicable interest rates are determined in accordance with the prevailing
borrowing rates/deposit saving rates published by the People's Bank of China.
23. RELATED PARTY TRANSACTIONS (continued)
(b) An analysis of the compensation of key management personnel of the
Group is as follows:
Six months ended 30 June
2025 2024
RMB'000 RMB'000
Short-term employee benefits 5,382 4,292
Retirement scheme contributions 886 807
Total emoluments for key management personnel 6,268 5,099
The breakdown of emoluments for key management personal are as follows:
Six months ended 30 June
2025 2024
RMB'000 RMB'000
Directors and supervisors 2,482 1,840
Senior management 3,786 3,259
6,268 5,099
(c) Transactions with other government-related entities in the PRC
The Company is ultimately controlled by the PRC government and the Group
operates in an economic environment currently predominated by entities
controlled, jointly controlled or significantly influenced by the PRC
government ("government-related entities").
Apart from above transactions with CNAHC Group, the Group has collectively,
but not individually significant transactions with other government-related
entities, which include but are not limited to the following:
• Rendering and receiving services
• Sales and purchases of goods, properties and other
assets
• Lease of assets
• Depositing and borrowing money
• Use of public utilities
The transactions between the Group and other government-related entities are
conducted in the ordinary course of the Group's business within normal
business operations. The Group has established its approval process for
providing of services, purchase of products, properties and services, purchase
of lease service and its financing policy for borrowing. Such approval
processes and financing policy do not depend on whether the counterparties are
government-related entities or not.
Glossary of Technical Terms
CAPACITY MEASUREMENTS
"available tonne kilometres" or "ATK(s)" the number of tonnes of capacity available for transportation multiplied by
the kilometres flown
"available seat kilometres" or "ASK(s)" the number of seats available for sale multiplied by the kilometres flown
"available freight tonne kilometres" or "AFTK(s)" the number of tonnes of capacity available for the carriage of cargo and mail
multiplied by the kilometres flown
TRAFFIC MEASUREMENTS
"passenger traffic" measured in RPK, unless otherwise specified
"revenue passenger kilometres" or "RPK(s)" the number of revenue passengers carried multiplied by the kilometres flown
"cargo and mail traffic" measured in RFTK, unless otherwise specified
"revenue freight tonne kilometres" or "RFTK(s)" the revenue cargo and mail load in tonnes multiplied by the kilometres flown
"revenue tonne kilometres" or "RTK(s)" the revenue load (passenger and cargo) in tonnes multiplied by the kilometres
flown
EFFICIENCY MEASUREMENTS
"passenger load factor" RPK expressed as a percentage of ASK
"cargo and mail load factor" RFTK expressed as a percentage of AFTK
"overall load factor" RTK expressed as a percentage of ATK
"Block hours" the total time from the removal of wheel chocks before the aircraft begins to
move until the placement of wheel chocks after the aircraft has landed and
come to a complete stop
YIELD MEASUREMENTS
"passenger yield"/"yield per RPK" revenues from passenger transportation divided by RPKs
"cargo yield"/"yield per RFTK" revenues from cargo and mail transportation divided by RFTKs
Definitions
In this interim report, unless the context otherwise requires, the following
terms shall have the following meanings:
"Air China Cargo" Air China Cargo Co., Ltd., a non-wholly owned subsidiary of CNAHC
"Airbus" Airbus S.A.S., a company established in Toulouse, France
"Air China Inner Mongolia" Air China Inner Mongolia Co., Ltd., a non-wholly owned subsidiary of the
Company
"Air Macau" Air Macau Company Limited, a non-wholly owned subsidiary of the Company
"Ameco" Aircraft Maintenance and Engineering Corporation, a non-wholly owned
subsidiary of the Company
"Articles of Association" the articles of association of the Company, as amended from time to time
"A Share(s)" ordinary share(s) in the share capital of the Company, with a nominal value of
RMB1.00 each, which are subscribed for and traded in Renminbi and listed on
Shanghai Stock Exchange
"Beijing Airlines" Beijing Airlines Company Limited, a non-wholly owned subsidiary of the Company
"Board" the board of directors of the Company
"Boeing" The Boeing Company
"CASs" China Accounting Standards for Business Enterprises
"Cathay Pacific" Cathay Pacific Airways Limited, an associate of the Company
"CNACG" China National Aviation Corporation (Group) Limited, a wholly-owned subsidiary
of CNAHC
"CNAF" China National Aviation Finance Co., Ltd, a non-wholly owned subsidiary of the
Company
"CNAHC" China National Aviation Holding Corporation Limited
"COMAC" Commercial Aircraft Corporation of China, Ltd.
"Company", "We" or "Air China" Air China Limited, a company incorporated in the PRC, whose H Shares are
listed on the Hong Kong Stock Exchange as its primary listing venue and on the
Official List of the UK Listing Authority as its secondary listing venue, and
whose A Shares are listed on the Shanghai Stock Exchange
"CSRC" China Securities Regulatory Commission
"Dalian Airlines" Dalian Airlines Company Limited, a non-wholly owned subsidiary of the Company
"Director(s)" the director(s) of the Company
"Group" the Company and its subsidiaries
"Hong Kong Stock Exchange" The Stock Exchange of Hong Kong Limited
"H Share(s)" overseas-listed foreign invested share(s) in the share capital of the Company,
with a nominal value of RMB1.00 each, which is/are listed on the Hong Kong
Stock Exchange (as primary listing venue) and has/have been admitted into the
Official List of the UK Listing Authority (as secondary listing venue)
"IFRS Accounting Standards" or "IFRSs" International Financial Reporting Standards Accounting Standards as issued by
the International Accounting Standards Board (IASB)
"Kunming Airlines" Kunming Airlines Company Limited, a subsidiary of Shenzhen Airlines
"Listing Rules" or "Hong Kong Listing Rules" The Rules Governing the Listing of Securities on The Stock Exchange of Hong
Kong Limited
"Model Code" the Model Code for Securities Transactions by Directors of Listed Issuers as
set out in Appendix C3 to the Listing Rules
"Reporting Period" the period from 1 January 2025 to 30 June 2025
"RMB" Renminbi, the lawful currency of the PRC
"SFO" The Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong)
"Shandong Airlines" Shandong Airlines Co., Ltd., a non-wholly owned subsidiary of Shandong
Aviation Group Corporation
"Shandong Aviation Group Corporation" Shandong Aviation Group Company Limited, a non-wholly owned subsidiary of the
Company
"Shenzhen Airlines" Shenzhen Airlines Company Limited, a non-wholly owned subsidiary of the
Company
"Supervisor(s)" the supervisor(s) of the Company
"Supervisory Committee" the supervisory committee of the Company
"Treasury Share(s)" has the meaning ascribed thereto under the Listing Rules
"US dollars" United States dollars, the lawful currency of the United States
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