RNS Number : 1500W
Air China Ld
12 July 2024
 

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 2024 to 30 June 2024.

 

(II)    Estimated Results

 

1.       According to the preliminary estimation by the finance department of the Company, the Company recorded a loss for the six months ended 30 June 2024. It is expected that the net loss attributable to equity holders of the Company would be approximately RMB2.3 billion to RMB3.0 billion, and the net loss attributable to equity holders of the Company after deducting non-recurring profit or loss would be approximately RMB2.8 billion to RMB3.8 billion.

 

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

 

II.      RESULTS FOR THE CORRESPONDING PERIOD OF THE PREVIOUS YEAR

 

(I)      Total loss: RMB4.365 billion.

Net loss attributable to equity holders of the Company: RMB3.451 billion.

 

Net loss attributable to equity holders of the Company after deducting non-recurring profit or loss: RMB4.938 billion.

 

(II)    Earnings per share: RMB-0.22.

 

III.    MAJOR REASONS FOR THE ESTIMATED LOSS FOR THE PERIOD

 

In 2024, the sustained recovery of China's economy has driven an overall increase in demand in the aviation market. Seizing the market opportunity, the Company has made significant efforts to enhance quality and efficiency. By maximizing marginal contributions in production, focusing on stabilizing revenue through price stability and business volume competition,

adopting the concept of "living within our means" ("過緊日子") for cost reduction and

efficiency gains and deepening collaboration to promote development, the Company has seen a

steady improvement in operating performance in the first half of the year, achieving significantly reduced losses compared to the same period last year. However, due to the slower-than-expected recovery of international routes, intensified domestic market competition and factor price fluctuations in oil prices and exchange rates, the Company still experienced operating losses 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 preliminary estimation, and the detailed and accurate financial figures will be disclosed in the 2024 interim report which will formally be 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, 11 July 2024

 

As at the date of this announcement, the directors of the Company are Mr. Ma Chongxian, Mr. Wang Mingyuan, Mr. Feng Gang, Mr. Patrick Healy, Mr. Xiao Peng, Mr. Li Fushen*, Mr. He Yun*, Mr. Xu Junxin* and Ms. Winnie Tam Wan-chi*.

 

*        Independent non-executive director of the Company

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