SECURITIES AND EXCHANGE COMMISSION

WASHINGTON D.C. 20549

 

 

FORM 6-K

 

 

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16

of the Securities Exchange Act of 1934

October 30, 2023

 

 

CHINA SOUTHERN AIRLINES COMPANY LIMITED

 

 

68 Qi Xin Road

Guangzhou, 510403

People’s Republic of China

(Address of principal executive offices)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F ☒   Form 40-F ☐

 

 

 

China Southern Airlines Company Limited (the “Company”) published the following announcement on October 27, 2023 on the Hong Kong Stock Exchange’s website at:

https://www1.hkexnews.hk/listedco/listconews/sehk/2023/1027/2023102700947.pdf, in relation to the third quarterly report of 2023.

The announcement in English is included as an exhibit to this Form 6-K.

Certain statements contained in this announcement may be viewed as “forward-looking statements” within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual performance, financial condition or results of operations of the Company to be materially different from any future performance, financial condition or results of operations implied by such forward-looking statements. Further information regarding these risks, uncertainties and other factors is included in the Company’s filings with the U.S. Securities and Exchange Commission. You should not place undue reliance on these forward-looking statements. All information provided in this announcement is as of the date of this announcement, unless otherwise stated, and we undertake no duty to update such information, except as required under applicable law.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

CHINA SOUTHERN AIRLINES COMPANY LIMITED

By:

  

/s/ Chen Wei Hua and Liu Wei

Name:

  

Chen Wei Hua and Liu Wei

Title:

  

Joint Company Secretaries

Date: October 30, 2023

Exhibit 99.1

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.

 

LOGO

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

(Stock Code: 1055)

THIRD QUARTERLY REPORT OF 2023

 

Summary

 

The quarterly financial report for the third quarter of 2023 (i.e. the three months ended 30 September 2023, the “reporting period”) of China Southern Airlines Company Limited (the “Company”, together with its subsidiaries, the “Group”) was prepared in accordance with the PRC Accounting Standards and was unaudited.

 

This announcement is published 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.

IMPORTANT NOTICE:

The board of directors (the “Board”) and the supervisory committee of China Southern Airlines Company Limited (the “Company”) and its directors (the “Directors”), supervisors and senior management warrant the truthfulness, accuracy and completeness of the content contained in this quarterly report, and the report does not contain inaccurate or misleading statements or material omission, and jointly and severally accept full legal responsibility.

The responsible person of the Company, Mr. Ma Xu Lun (Chairman), the responsible person of the accounting of the Company, Mr. Yao Yong (Executive Vice President, Chief Accountant and Chief Financial Officer of the Company), and the responsible person of the accounting department, Ms. Mao Juan (General Manager of Finance Department) warrant the truthfulness, accuracy and completeness of the financial statements contained in this quarterly report.

Whether the Third Quarterly Financial Statements have been audited

☐ Yes   ✓ No

 

- 1 -

I.

MAJOR ACCOUNTING DATA

 

(I)

Principal accounting data and financial indicators

Unit: Million Currency: RMB

 

Items

    The reporting period      Increase/(decrease)
as compared with
the corresponding
period last year (%)		      Nine months ended
30 September 2023		      Increase/(decrease)
as compared with
the corresponding
period last year (%)		  

Operating revenue

      47,661        62.42        119,491        70.31  

Net profit attributable to shareholders of the Company

      4,195        N/A        1,320        N/A  

Net profit attributable to shareholders of the Company after deducting non-recurring gains and losses

      3,809        N/A        -151        -99.18  

Net cash flows generated from operating activities

      N/A        N/A        36,979        406.56  

Basic earnings per share (RMB/share)

      0.23        N/A        0.07        N/A  

Diluted earnings per share (RMB/share)

      0.21        N/A        0.05        N/A  

Weighted average return on net assets (%)

      10.43       
 Increased by 22.41
percentage points		  
 		      3.16       
 Increased by 38.10
percentage points		  
 
       As at the end
of the reporting
period		      As at the end
of last year		      Increase/(decrease)
as compared with
that of the end of
last year (%)		  

Total assets

 

      306,201        312,001        -1.86  

Equity attributable to shareholders of the Company

 

      42,314        41,057        3.06  

 

Note:

The “reporting period” and the same expressions hereafter mentioned refer to the three-months period from the beginning to the end of the third quarter of 2023.

 

- 2 -

(II)

Non-recurring gains and losses

Unit: Million Currency: RMB

 

Items

    Amount for
the reporting
period		     

Amount for the period

from the beginning

of the year to the end

of the reporting period

Gains or losses on disposal of non-current assets

      56      249

Government grants recorded in the income statement for the current period, but exclusive of government grants which are closely related to the normal business of the Company and entitled pursuant to unified standard quota or amount under the government policy

      280      643

In addition to the valid hedging business related to the company’s normal business operations, the gains/losses from changes in fair value arising from the holding of trading financial assets, derivative financial assets, trading financial liabilities, derivative financial liabilities, and investment income from the disposal of trading financial assets, derivative financial assets, trading financial liabilities, derivative financial liabilities, and other investments in debt

      -35      580

Other non-operating income and expenses other than the above item

      140      317

Less: Effect on income tax

      9      183

Effect on non-controlling interests (after tax)

      46      135
  

 

 

     

 

Total

      386      1,471

Notes on defining any non-recurring gains and losses items as listed in the “The No.1 Explanatory Announcement Regarding Information Disclosure for Companies Issuing Securities Publically – Non- Recurring Gains and Losses” as recurring gains and losses items

☐ Applicable   ✓ Not applicable

 

- 3 -

(III)

Changes to major accounting data and financial indicators and reasons

 

  ✓

Applicable   ☐ Not applicable

 

Items

    Percentage of
change (%)		     

Main reason(s)

Operating revenue-the reporting period

      62.42      Operating revenue has increased, mainly due to an increase of passenger revenue, when the industry recovered during the reporting period as compared with the same period last year

Operating revenue-nine months ended 30 September 2023

      70.31      Operating revenue has increased, mainly due to an increase of passenger revenue, when the industry recovered during the nine months ended 30 September 2023 as compared with the same period last year

Net profit attributable to shareholders of the Company-the reporting period

      N/A      The Group recorded profit during the reporting period as compared to recorded loss in the same period last year, mainly due to an increase of passenger revenue, when the industry recovered during the reporting period as compared with the same period last year

Net profit attributable to shareholders of the Company-nine months ended 30 September 2023

      N/A      The Group recorded profit during the nine months ended 30 September 2023 as compared to recorded loss in the same period last year, mainly due to an increase of passenger revenue, when the industry recovered during the nine months ended 30 September 2023 as compared with the same period last year

Net profit attributable to shareholders of the Company after deducting non-recurring gains and losses-the reporting period

      N/A      The Group recorded profit during the reporting period as compared to recorded loss in the same period last year, mainly due to an increase of passenger revenue, when the industry recovered during the reporting period as compared with the same period last year

Net profit attributable to shareholders of the Company after deducting non-recurring gains and losses-nine months ended 30 September 2023

      -99.18      The Group recorded profit during the nine months ended 30 September 2023 as compared to recorded loss in the same period last year, mainly due to an increase of passenger revenue, when the industry recovered during the nine months ended 30 September 2023 as compared with the same period last year

 

- 4 -

Items

    Percentage of
change (%)		     

Main reason(s)

Net cash flows generated from operating activities-nine months ended 30 September 2023

      406.56      Operating revenue has increased, mainly due to an increase of passenger revenue, when the industry recovered during the nine months ended 30 September 2023 as compared with the same period last year

Basic earnings per share-the reporting period

      N/A      The Group recorded profit during the reporting period as compared to recorded loss in the same period last year, mainly due to an increase of passenger revenue, when the industry recovered during the reporting period as compared with the same period last year

Basic earnings per share-nine months ended 30 September 2023

      N/A      The Group recorded profit during the nine months ended 30 September 2023 as compared to recorded loss in the same period last year, mainly due to an increase of passenger revenue, when the industry recovered during the nine months ended 30 September 2023 as compared with the same period last year

Diluted earnings per share-the reporting period

      N/A      The Group recorded profit during the reporting period as compared to recorded loss in the same period last year, mainly due to an increase of passenger revenue, when the industry recovered during the reporting period as compared with the same period last year

Diluted earnings per share-nine months ended 30 September 2023

      N/A      The Group recorded profit during the nine months ended 30 September 2023 as compared to recorded loss in the same period last year, mainly due to an increase of passenger revenue, when the industry recovered during the nine months ended 30 September 2023 as compared with the same period last year

Weighted average return on net assets-the reporting period

     

 Increased
by 22.41

percentage

points

  
 

 

 

    The Group recorded profit during the reporting period as compared to recorded loss in the same period last year, mainly due to an increase of passenger revenue, when the industry recoverd during the reporting period as compared with the same period last year

Weighted average return on net assets-nine months ended 30 September 2023

     

 Increased
by 38.10

percentage

points

  
 

 

 

    The Group recorded profit during the nine months ended 30 September 2023 as compared to recorded loss in the same period last year, mainly due to an increase of passenger revenue, when the industry recovered during the nine months ended 30 September 2023 as compared with the same period last year

 

- 5 -

II.

INFORMATION OF SHAREHOLDERS

 

(I)

Total number of ordinary shareholders and number of preference shareholders with restored voting rights and shareholdings of the top ten shareholders

Unit: Share

 

Total number of ordinary shareholders as at the end of the reporting period      162,987       

 Total number of preference shareholders
with restored voting rights as at the end of
the reporting period (if any)		  
 
 		      Not applicable  
Shareholdings of the top ten shareholders  

Name of shareholder

    Capacity of shareholder      Total number of
shares held at
the end of the
reporting period		      Shareholding
percentage at
the end of the
reporting period
(%)		      Number of shares
subject to trading
restrictions at
the end of the
reporting period		      Status of pledged,
marked or frozen shares		  
   Status of
shares		      Number of
shares		  

China Southern Air Holding Company Limited

      State-owned legal entity        9,404,468,936        51.90        803,571,428        No        0  

Nan Lung Holding Limited

      State-owned legal entity        2,612,124,036        14.41        0        No        0  

HKSCC Nominees Limited

      Overseas legal entity        1,750,815,837        9.66        0        Not known        —   

Hong Kong Securities Clearing Company Limited

      Overseas legal entity        654,597,606        3.61        0        No        0  

China Securities Finance Corporation Limited

      State-owned legal entity        320,484,148        1.77        0        No        0  

American Airlines, Inc.

      Overseas legal entity        270,606,272        1.49        0        No        0  

China National Aviation Fuel Group Limited

      State-owned legal entity        261,685,354        1.44        0        No        0  

Spring Airlines Co., Ltd.

     
 Domestic non-State-
owned legal entity
 		      140,043,961        0.77        0        No        0  

China Structural Reform Fund Corporation Limited

      State-owned legal entity        72,077,475        0.40        0        No        0  

Industrial Bank Co., Ltd. – Guangfa Ruiyi Leading Hybrid Securities Investment Fund

     

 Domestic
non-State-owned legal
entity		  
 
 		      70,644,579        0.39        0        No        0  

 

- 6 -

Particulars of the top ten shareholders not subject to trading restrictions  

Name of shareholder

    Number of tradable
shares not subject to
selling restrictions		      Type and number of shares  
   Type of shares    Number of shares  

China Southern Air Holding Company Limited

      8,600,897,508      RMB ordinary shares      8,600,897,508  

Nan Lung Holding Limited

      2,612,124,036      Overseas-listed foreign shares      2,612,124,036  

HKSCC Nominees Limited

      1,750,815,837      Overseas-listed foreign shares      1,750,815,837  

Hong Kong Securities Clearing Company Limited

      654,597,606      RMB ordinary shares      654,597,606  

China Securities Finance Corporation Limited

      320,484,148      RMB ordinary shares      320,484,148  

American Airlines, Inc.

      270,606,272      Overseas-listed foreign shares      270,606,272  

China National Aviation Fuel Group Limited

      261,685,354      RMB ordinary shares      261,685,354  

Spring Airlines Co., Ltd.

      140,043,961      RMB ordinary shares      140,043,961  

China Structural Reform Fund Corporation Limited

      72,077,475      RMB ordinary shares      72,077,475  

Industrial Bank Co., Ltd. – Guangfa Ruiyi Leading Hybrid Securities Investment Fund

      70,644,579      RMB ordinary shares      70,644,579  

Explanation of the related party relationship or concert party relationship of the above shareholders

     




 China Southern Air Holding Company Limited held in
aggregate 2,648,836,036 H shares of the Company through its
wholly-owned subsidiaries in Hong Kong, namely Nan Lung
Holding Limited and Perfect Lines (Hong Kong) Limited. The
Company is not aware of any other related party relationship
between other shareholders.		  
 
 
 
 
 

Explanation on the top ten shareholders and the top ten shareholders not subject to trading restrictions who have participated in the business of margin financing and securities lending and margin refinancing (if any)

      Not applicable  

 

- 7 -

III.

IMPORTANT INFORMATION

Other important information related to the Company’s business performance during the reporting period should be brought to the attention of the investors

✓ Applicable  ☐ Not applicable

Status on the guarantees provided for the SPVs of the Company as of the date of this report:

 

No.

   

Established SPVs

   

Actually Provided

(Yes/no)

    Guaranteed Amount
(US$100 million)		  

1

   

China Southern Airlines No. 1

   

Yes

      1.50  

2

   

China Southern Airlines No. 2

   

Yes

      1.40  

3

   

China Southern Airlines No. 3

   

Yes

      3.28  

4

   

China Southern Airlines No. 5

   

Yes

      0.92  

5

   

China Southern Airlines No. 6

   

Yes

      0.35  

6

   

China Southern Airlines No. 7

   

Yes

      0.35  

7

   

China Southern Airlines No. 8

   

Yes

      0.35  

8

   

China Southern Airlines No. 9

   

Yes

      5.88  

9

   

China Southern Airlines No. 10

   

Yes

      5.17  

10

   

China Southern Airlines No. 11

   

Yes

      2.98  

11

   

China Southern Airlines No. 12

   

Yes

      0.25  

12

   

China Southern Airlines No. 13

   

Yes

      0.25  

13

   

China Southern Airlines No. 14

   

Yes

      0.33  

14

   

China Southern Airlines No. 15

   

Yes

      3.11  

15

   

China Southern Airlines No. 16

   

Yes

      5.26  

16

   

China Southern Airlines No. 17

   

Yes

      1.49  

17

   

China Southern Airlines No. 18

   

Yes

      2.50  

18

   

China Southern Airlines No. 19

   

Yes

      0.51  

19

   

China Southern Airlines No. 20

   

Yes

      0.51  

20

   

China Southern Airlines No. 21

   

Yes

      0.48  

21

   

China Southern Airlines No. 22

   

Yes

      0.48  

 

- 8 -

No.

   

Established SPVs

   

Actually Provided

(Yes/no)

    Guaranteed Amount
(US$100 million)		  

22

   

China Southern Airlines No. 23

   

Yes

      0.48  

23

   

China Southern Airlines No. 24

   

Yes

      2.78  

24

   

China Southern Airlines No. 25

   

Yes

      2.04  

25

   

China Southern Airlines No. 26

   

Yes

      4.73  

26

   

Chongqing Airlines No.1

   

Yes

      3.52  

27

   

Chongqing Airlines No.2

   

Yes

      0.32  

28

   

Xiamen Airlines No.1

   

Yes

      0.66  

29

   

Xiamen Airlines No.2

   

Yes

      0.10  

30

   

Xiamen Airlines No.3

   

Yes

      0.10  

31

   

Xiamen Airlines No.4

   

Yes

      0.19  

32

   

Xiamen Airlines No.5

   

Yes

      0.19  

33

   

Xiamen Airlines No.6

   

Yes

      0.20  

34

   

Xiamen Airlines No.7

   

Yes

      0.11  

35

   

Xiamen Airlines No.8

   

Yes

      0.19  

36

   

Xiamen Airlines No.9

   

Yes

      0.19  

37

   

Xiamen Airlines No.10

   

Yes

      0.19  

38

   

Xiamen Airlines No.11

   

Yes

      0.19  

39

   

Xiamen Airlines No.12

   

Yes

      0.08  

40

   

Xiamen Airlines No.13

   

Yes

      0.19  

41

   

Xiamen Airlines No.14

   

Yes

      0.18  

42

   

Xiamen Airlines No.15

   

Yes

      0.18  

43

   

Xiamen Airlines No.16

   

Yes

      0.09  

44

   

Xiamen Airlines No.17

   

Yes

      0.08  

45

   

Xiamen Airlines No.18

   

Yes

      0.67  

Total

    /    /      55.00  

 

- 9 -

Note  

Pursuant to the authorization of the 2022 annual general meeting of the Company, Xiamen Airlines adjusted the guarantee limits of Xiamen Airlines No.1 and Xiamen Airlines No. 18 to US$66 million and US$67 million, respectively, within the authorized guarantee limit of RMB3,560 million or equivalent foreign currency.

 

The total guarantee amounts actually provided for the aforementioned 45 SPVs by the Company and its subsidiaries, i.e. Xiamen Airlines and Chongqing Airlines, are US$5.500 billion (equivalent to approximately RMB39.489 billion, calculated based on the Renminbi central parity rate of US$1=RMB7.1798 published by the People’s Bank of China on 28 September 2023), which are within the scope of the authorized guarantee amount approved by the general meeting of the Company.

 

IV.

QUARTERLY FINANCIAL STATEMENTS

 

(I)

Type of audit opinion

☐  Applicable ✓ Not applicable

 

(II)

Financial statements

Consolidated Balance Sheet

As at 30 September 2023

Prepared by: China Southern Airlines Company Limited

Unit: Million Currency: RMB Audit type: Unaudited

 

Items

    30 September 2023      31 December 2022  

Current assets:

 

Cash at bank and on hand

      14,435        20,240  

Settlement provisions

      

Loans to banks and other financial institutions

      

Held-for-trading financial assets

      

Derivative financial assets

      —         2  

Bills receivable

      

Accounts receivable

      4,270        2,656  

 

- 10 -

Items

    30 September 2023      31 December 2022  

Receivables financing

      

Prepayments

      744        619  

Premiums receivable

      

Reinsurance accounts receivable

      

Reinsurance contract reserves receivable

      

Other receivables

      2,208        1,943  

Including: Interest receivable

      —         —   

Dividends receivable

      10        4  

Financial assets purchased with agreement to resale

      

Inventories

      1,791        1,387  

Contract assets

      

Assets held for sale

      —         26  

Non-current assets due within one year

      153        152  

Other current assets

      6,381        5,746  

Total current assets

      29,982        32,771  

Non-current assets:

 

Loans and advances

      

Debt investments

      

Other debt investments

      

Long-term receivables

      605        744  

Long-term equity investments

      6,573        6,205  

Other equity instrument investments

      548        659  

Other non-current financial assets

      50        49  

Investment properties

      524        341  

Fixed assets

      93,260        90,810  

Construction in progress

      33,863        33,322  

 

- 11 -

Items

    30 September 2023      31 December 2022  

Productive biological assets

      

Oil and gas assets

      

Right-of-use assets

      120,849        126,491  

Intangible assets

      6,368        6,547  

Development expenses

      

Goodwill

      

Long-term deferred expenses

      485        624  

Deferred tax assets

      12,176        12,473  

Other non-current assets

      918        965  

Total non-current assets

      276,219        279,230  

Total assets

      306,201        312,001  

Current liabilities:

 

Short-term borrowings

      44,080        53,674  

Borrowings from the central bank

      

Loans from other banks

      

Held-for-trading financial liabilities

      

Derivative financial liabilities

      1,120        1,708  

Bills payable

      

Accounts payable

      21,468        14,351  

Advance payments received

      8,117        3,383  

Contract liabilities

      1,725        1,496  

Funds from selling out and repurchasing financial assets

      

Receipts of deposits and deposits from other banks

      

Accounts payable to brokerage customers

      

 

- 12 -

Items

    30 September 2023      31 December 2022  

Proceeds from underwriting securities received on behalf of customers

      

Employee benefits payable

      5,321        4,564  

Taxes payable

      730        640  

Other payables

      8,093        7,939  

Including: Interest payable

      

Dividends payable

      

Fees and commissions payable

      

Reinsurance accounts payable

      

Liabilities held for sale

      

Non-current liabilities due within one year

      36,924        41,167  

Other current liabilities

      6,546        12,536  

Total current liabilities

      134,124        141,458  

Non-current liabilities:

 

Reserves for insurance contracts

      

Long-term borrowings

      22,465        15,316  

Bonds payable

      15,329        19,128  

Including: Preferred shares

      

Perpetual bonds

      

Lease liabilities

      68,435        72,963  

Long-term payables

      170        289  

Long-term salaries payable

      

Accrued liabilities

      

Deferred income

      745        760  

Deferred tax liabilities

      23        24  

Other non-current liabilities

      7,048        6,949  

 

- 13 -

Items

    30 September 2023      31 December 2022  

Total non-current liabilities

      114,215        115,429  

Total liabilities

      248,339        256,887  

Owners’ equity (or shareholders’ equity):

 

Share capital (or issued capital)

      18,121        18,121  

Other equity instruments

      

Including: Preferred shares

      

Perpetual bonds

      

Capital reserve

      52,757        52,775  

Less: Inventory shares

      

Other comprehensive income

      216        261  

Specific reserve

      

Surplus reserve

      2,579        2,579  

General risk reserve

      

Retained earnings

      -31,359        -32,679  

Total equity attributable to shareholders of the Company

      42,314        41,057  

Non-controlling interests

      15,548        14,057  

Total owners’ equity (or shareholders’ equity)

      57,862        55,114  

Total liabilities and owners’ equity (or shareholders’ equity)

      306,201        312,001  

 

Responsible person

of the Company:

Ma Xu Lun

   

Responsible person of the

accounting of the Company:

Yao Yong

   

Responsible person of the

accounting department:

Mao Juan

 

- 14 -

Consolidated Income Statement

For the nine months ended 30 September 2023

Prepared by: China Southern Airlines Company Limited

Unit: Million Currency: RMB Audit type: Unaudited

 

Items

    Nine months ended
30 September 2023		      Nine months ended
30 September 2022		  

I.   Total revenue

      119,491        70,161  

Including: Operating revenue

      119,491        70,161  

Interest income

      

Premiums earned

      

Fees and commissions income

      

II. Total operating costs

      119,954        94,601  

Including: Cost of sales

      106,356        80,216  

Interest expense

      

Fees and commissions expense

      

Surrender payment

      

Net payment for insurance claim

      

Net provisions for insurance liability

      

Expenditure for insurance policy dividend

      

Reinsurance costs

      

Taxes and surcharges

      370        196  

Promotion and selling expenses

      4,791        2,996  

General and administrative expenses

      2,744        2,455  

Research and development expenses

      377        268  

Financial expenses

      5,316        8,470  

Including: Interest expenses

      4,397        4,474  

Interest income

      319        347  

 

- 15 -

Items

    Nine months ended
30 September 2023		      Nine months ended
30 September 2022		  

Add: Other income

      2,828        2,478  

Investment income (“-” for losses)

      463        479  

Including: Share of profit of associates and joint ventures

      449        215  

Derecognition of income from financial assets at amortised cost

      

Exchange gain (“–” for losses)

      

Gain arising from net exposure hedge (“–” for losses)

      

Gains arising from changes in fair value (“-” for losses)

      574        164  

Credit losses (“-” for losses)

      -7        30  

Impairment losses on property, plant and equipment and right- of-use rights (“–” for losses)

      

Gains on disposal of assets (“–” for losses)

      249        149  

III.  Operating profit (“-” for losses)

      3,644        -21,140  

Add: Non-operating income

      385        553  

Less: Non-operating expenses

      63        22  

IV.  Total profits (“-” for total losses)

      3,966        -20,609  

Less: Income tax expenses

      1,196        -2,474  

V. Net profit (“-” for net losses)

      2,770        -18,135  

(I)   Net profit classified by continuity of operations

      

1.  Net profit from continuing operations (“-” for net losses)

      2,770        -18,135  

2.  Net profit from discontinued operations (“-” for net losses)

      

(II)  Net profit classified by ownership

      

1.  Net profit attributable to shareholders of the Company (“-” for net losses)

      1,320        -17,587  

2.  Non-controlling interests (“-” for net losses)

      1,450        -548  

 

- 16 -

Items

    Nine months ended
30 September 2023		      Nine months ended
30 September 2022		  

VI.  Other comprehensive income, net of tax

      -82        3  

(I)   Other comprehensive income (net of tax) attributable to shareholders of the Company

      -45        2  

1.  Items that will not be reclassified to profit or loss

      -46        —   

(1)   Change in defined benefit plans arising from re-measurement

      

(2)   Equity-accounted investees – share of other comprehensive income (non-recycling)

      

(3)   Changes in fair value of other equity instruments

      -46        —   

(4)   Change in fair value of the Company’s own credit risk

      

2.  Items that may be reclassified subsequently to profit or loss

      1        2  

(1)   Equity-accounted investees-share of other comprehensive income (recycling)

      

(2)   Change in fair value of other debt investments

      

(3)   Financial assets reclassified into other comprehensive income

      

(4)   Provision for credit impairment of other debt investments

      

(5)   Cash flow hedge: fair value movement of derivative financial assets/liabilities

      

(6)   Translation differences arising on translation of foreign currency financial statements

      1        2  

(7)   Others

      

(II)  Other comprehensive income (net of tax) attributable to non-controlling interests

      -37        1  

 

- 17 -

Items

    Nine months ended
30 September 2023		      Nine months ended
30 September 2022		  

VII.  Total comprehensive income

      2,688        -18,132  

(I)   Attributable to shareholders of the Company

      1,275        -17,585  

(II)  Attributable to non-controlling interests

      1,413        -547  

VIII.Earnings per share:

 

(I)   Basic earnings per share (RMB/share)

      0.07        -1.03  

(II)  Diluted earnings per share (RMB/share)

      0.05        -1.03  

 

Responsible person

of the Company:

   

Responsible person of the

accounting of the Company:

   

Responsible person of the

accounting department:

Ma Xu Lun    Yao Yong    Mao Juan

Consolidated Cash Flow Statement

For the nine months ended 30 September 2023

Prepared by: China Southern Airlines Company Limited

Unit: Million Currency: RMB Audit type: Unaudited

 

Items

    Nine months ended
30 September 2023		      Nine months ended
30 September 2022		  
               

I.   Cash flows from operating activities:

      

Proceeds from sale of goods and rendering of services

      136,323        75,035  

Net increase in customer and interbank deposits

      

Net increase in borrowings from the central bank

      

Net cash increase in placements from other financial institutions

      

Cash received from premiums under original insurance contracts

      

Net cash received from reinsurance business

      

Net increase in deposits of policy holders and investment funds

      

Cash received from interest, fees and commissions

      

Net increase in capital due to banks and other financial institutions

      

Net increase in cash received from repurchase business

      

Net cash received by agents for trading in securities

      

 

- 18 -

Items

    Nine months ended
30 September 2023		      Nine months ended
30 September 2022		  

Refund of taxes and surcharges

      274        5,600  

Proceeds from other operating activities

      2,248        3,266  

Sub-total of operating cash inflows from operating activities

      138,845        83,901  

Payment for goods and services

      76,415        54,057  

Net increase in customer loans and advances to customers

      

Net increase in deposits in the central bank and interbank deposits

      

Cash paid for compensation payments under original insurance contracts

      

Net increase in placements with banks and other financial institutions

      

Cash paid for interest, fees and commissions

      

Cash paid for insurance policy dividend

      

Payment to and for employees

      21,649        18,820  

Payment of taxes and surcharges

      3,233        3,147  

Payment for other operating activities

      569        577  

Sub-total of cash outflows from operating activities

      101,866        76,601  

Net cash flows from operating activities

      36,979        7,300  

II.   Cash flows from investment activities:

      

Cash received from return of investments

      93        597  

Cash received on investment income

      262        129  

Net proceeds from disposal of fixed assets, intangible assets and other long-term assets

      1,241        3,831  

Net cash received from disposal of subsidiaries and other operating units

      —         190  

Proceeds from other investing activities

      340        321  

Sub-total of cash inflows from investing activities

      1,936        5,068  

Payment for acquisition of fixed assets, intangible assets and other long-term assets

      8,502        7,209  

Cash paid for investment

      67        530  

Net increase in secured loans

      

 

- 19 -

Items

    Nine months ended
30 September 2023		      Nine months ended
30 September 2022		  

Net cash paid for acquisition of subsidiaries and other operating units

      

Other cash paid relating to investing activities

      

Sub-total of cash outflows from investment activities

      8,569        7,739  

Net cash flows from investing activities

      -6,633        -2,671  

III. Cash flows from financing activities:

      

Proceeds from investors

      1,017        1,665  

Including: Proceeds from non-controlling shareholders of subsidiaries

      1,017        116  

Proceeds from borrowings

      33,486        57,726  

Proceeds from other financing activities

      10,714        19,900  

Sub-total of cash inflows from financing activities

      45,217        79,291  

Repayments of borrowings

      75,736        85,116  

Payment for dividends, profit distributions or interest

      5,468        5,440  

Including: Dividends and profits paid to non-controlling shareholders of subsidiaries

      932        902  

Payment for other financing activities

      82        14  

Sub-total of cash outflows from financing activities

      81,286        90,570  

Net cash flows from financing activities

      -36,069        -11,279  

IV.  Effect of changes in exchange rate on cash and cash equivalents

      25        80  

V. Net increase in cash and cash equivalents

      -5,698        -6,570  

Add: Cash and cash equivalents at the beginning of the period

      19,889        21,456  

VI.  Cash and cash equivalents at the end of the period

      14,191        14,886  

 

Responsible person

of the Company:

   

Responsible person of the

accounting of the Company:

   

Responsible person of the

accounting department:

Ma Xu Lun    Yao Yong    Mao Juan

 

- 20 -

(III)

Adjustment to relevant items of the financial statements at the beginning of the first adoption year due to the first adoption of new accounting standard or interpretation of accounting standards in 2023

☐ Applicable   ✓ Not applicable

 

By order of the Board

China Southern Airlines Company Limited

Chen Wei Hua and Liu Wei

Joint Company Secretaries

Guangzhou, the People’s Republic of China

27 October 2023

As at the date of this announcement, the Directors include Ma Xu Lun, Han Wen Sheng and Luo Lai Jun as executive Directors; and Pansy Catilina Chiu King Ho, Gu Hui Zhong, Guo Wei and Cai Hong Ping as independent non-executive Directors.

 

- 21 -

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