REG - Air China Ld - Profit Warning

Air ChinaAnnouncement

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RNS Number : 0593R  Air China Ld  15 July 2025

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong
Limited take no responsibility for the contents of this announcement, make no
representation as to its accuracy or completeness and expressly disclaim any
liability whatsoever for any loss howsoever arising from or in reliance upon
the whole or any part of the contents of this announcement.

 

中國國際航空股份有限公司

AIR CHINA LIMITED

(a joint stock limited company incorporated in the People's Republic of China
with limited liability)

(Stock Code: 00753)

 

Profit Warning

 

This announcement is made by Air China Limited (the "Company") pursuant to
Rule 13.09 and Rule 13.10B of The Rules Governing the Listing of Securities on
The Stock Exchange of Hong Kong Limited (the "Listing Rules") and the Inside
Information Provisions (as defined in the Listing Rules) under Part XIVA of
the Securities and Futures Ordinance (Chapter 571 of the laws of Hong Kong).

 

I.       ESTIMATED RESULTS FOR THE PERIOD

 

(I)      Results Estimation Period

 

1 January 2025 to 30 June 2025.

 

(II)    Estimated Results

 

1.       According to the preliminary estimation by the finance department
of the Company, the Company is expected to record a loss for the six months
ended 30 June 2025. It is expected that the net loss attributable to equity
holders of the Company would be approximately RMB1.7 billion to RMB2.2
billion, and the net loss attributable to equity holders of the Company after
deducting non-recurring profit or loss would be approximately RMB1.8 billion
to RMB2.4 billion.

 

2.       The estimated results have not been audited by certified
accountants.

 

II.      RESULTS FOR THE CORRESPONDING PERIOD OF THE PREVIOUS YEAR

 

(I)      Net loss attributable to equity holders of the Company: RMB2.782
billion.

Net loss attributable to equity holders of the Company after deducting
non-recurring profit or loss: RMB3.440 billion.

 

(II)    Earnings per share: RMB-0.18.

 

III.    MAJOR REASONS FOR THE ESTIMATED LOSS FOR THE PERIOD

 

In 2025, China's economy maintained steady growth, and the aviation industry
continued to develop. Seizing the opportunity, the Company intensified efforts
to improve quality and efficiency. By strengthening production organization,
the Company enhanced aircraft utilization to solidify the foundational input
base. Through refined marketing controls, the Company promoted the strategy of
"price stability and volume growth" to stabilize yield quality. Strict cost
management reduced expense levels and expanded profit margins. In the first
half of the year, operational performance steadily improved, achieving a
significant year-on-year reduction in losses. However, due to imbalanced
market supply, a downward shift in passenger demographics, high-speed rail
network competition, deepening uncertainties in the international environment,
and changes in global industrial and supply chains, the Company remained in a
loss-making position in the first half of the year.

 

IV.    RISK ALERT

 

There are no uncertainties which will affect the accuracy of the estimated
results of the Company.

 

V.      OTHER INFORMATION

 

The above estimated results are only a preliminary estimation, and the
detailed and accurate financial figures will be disclosed in the interim
report of 2025 which will be formally published by the Company. Investors are
reminded to pay attention to the investment risks.

 

Shareholders and potential investors of the Company are advised to exercise caution when dealing in the securities of the Company.

 

By Order of the Board

Air China Limited

Xiao Feng                 Huen Ho Yin

Joint Company Secretaries

 

Beijing, the PRC, 14 July 2025

 

As at the date of this announcement, the directors of the Company are 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* and Mr. Gao
Chunlei*.

 

*    Independent non-executive director of the Company

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