Form 6-K CHINA SOUTHERN AIRLINES For: Apr 29

April 29, 2022 12:13 PM EDT

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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

April 29, 2022

 

 

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  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ☐

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes  ☐    No  ☒

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): N/A

 

 

 


China Southern Airlines Company Limited (the “Company”) published the following announcement on April 28, 2022 on the Hong Kong Stock Exchange’s website at:

https://www1.hkexnews.hk/listedco/listconews/sehk/2022/0428/2022042804097.pdf, in relation to the first quarterly report of 2022.

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

Certain statements contained in these announcements 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/ Xie Bing

Name:   Xie Bing
Title:   Company Secretary
Date: April 29, 2022

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

 

FIRST QUARTERLY REPORT OF 2022

 

 

Summary

 

The quarterly financial report for the first quarter of 2022 (i.e. the three months ended 31 March 2022, 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 First 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
     Change as
compared with the
corresponding
period last year (%)
 

Operating revenue

     21,471        1.03  

Net profit attributable to shareholders of the Company

     -4,496        12.23  

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

     -4,575        18.89  

Net cash flows generated from operating activities

     17        Not applicable  

Basic earnings per share (RMB/share)

     -0.27        3.85  

Diluted earnings per share (RMB/share)

     -0.27        3.85  

Weighted average return on net assets (%)

     -5.54        Increase by 0.41 percentage point  
     As at the
end of the
reporting
period
     As at the end
of last year
     Change as
compared
with that of
the end of last
year (%)
 

Total assets

     319,820        322,948        -0.97  

Equity attributable to shareholders of the Company

     63,120        67,616        -6.65  

 

- 2 -


(II)

Non-recurring gains and losses

Unit: Million    Currency: RMB

 

Items

   Amount for
the reporting
period
 

Gains or losses on disposal of non-current assets

     36  

Government grants recorded in the income statement for the current period, 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

     2  

Other non-operating income and expenses other than the above

     55  

Other profit and loss items that meet the definition of non-recurring profit and loss

     24  

Less: Effect of income tax

     28  

Effect on non-controlling interests after taxation

     10  

Total

     79  

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

 

(III)

Changes to major accounting data and financial indicators and reasons

☒  Applicable     ☐  Not applicable

 

Items

  

Percentage of

change (%)

  

Main reason(s)

Net cash flows generated from operating activities- three months ended 31 March 2022    Not applicable    This is mainly because the net operating cash flow generated by cargo and mail business during the reporting period was higher than that in the same period last year.

 

- 3 -


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    142,786     

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
     Shareholding
percentage
(%)
     Number of
shares subject
to trading
restrictions
     Status of pledged,
marked or frozen
shares
 
   Status of
shares
     Number
of shares
 

China Southern Air Holding Company Limited

   State-owned legal entity      8,600,897,508        50.75        2,453,434,457        No        0  

Nan Lung Holding Limited

   State-owned legal entity      2,243,271,577        13.24        0        No        0  

HKSCC Nominees Limited

   Overseas legal entity      1,750,798,857        10.33        0        Not known        —    

Hong Kong Securities Clearing Company Limited

   Overseas legal entity      612,534,745        3.61        0        No        0  

China National Aviation Fuel Group Limited

   State-owned legal entity      353,261,857        2.08        0        No        0  

China Securities Finance Corporation Limited

   State-owned legal entity      320,484,148        1.89        0        No        0  

American Airlines, Inc

   Overseas legal entity      270,606,272        1.60        0        No        0  

China Structural Reform Fund Corporation Limited

   State-owned legal entity      192,659,933        1.14        0        No        0  

Spring Airlines Co., Ltd.

   Domestic non-State- owned legal entity      136,431,561        0.80        0        No        0  

China Reform State-owned Enterprise Operation Investment Fund Management (Guangzhou) Co., Ltd. – China Reform State- owned Enterprise Operation (Guangzhou) Investment Fund (LLP)

   Domestic non-State- owned legal entity      70,006,275        0.41        0        No        0  

 

- 4 -


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

     6,147,463,051      RMB ordinary shares      6,147,463,051  

Nan Lung Holding Limited

     2,243,271,577      Overseas-listed foreign shares      2,243,271,577  

HKSCC Nominees Limited

     1,750,798,857      Overseas-listed foreign shares      1,750,798,857  

Hong Kong Securities Clearing Company Limited

     612,534,745      RMB ordinary shares      612,534,745  

China National Aviation Fuel Group Limited

     353,261,857      RMB ordinary shares      353,261,857  

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 Structural Reform Fund Corporation Limited

     192,659,933      RMB ordinary shares      192,659,933  

Spring Airlines Co., Ltd.

     136,431,561      RMB ordinary shares      136,431,561  

China Reform State-owned Enterprise Operation Investment Fund Management (Guangzhou) Co., Ltd. – China Reform State-owned Enterprise Operation

(Guangzhou) Investment Fund (LLP)

     70,006,275      RMB ordinary shares      70,006,275  
Explanation of the related party relationship or concert party relationship of the above shareholders     




 










China Southern Air Holding Company Limited held in
aggregate 2,279,983,577 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.

 

The overseas-listed foreign shares among the tradable shares
not subject to the trading restrictions in the table above
include 608,695,652 H shares held by Nan Lung Holding
Limited, a wholly-owned subsidiary of China Southern Air
Holding Company Limited, the controlling shareholder of the
Company, in connection with the subscription of the
Company’s 2020 non-public issuance of H shares. Nan Lung
Holding Limited undertakes not to trade or transfer the
aforesaid H shares within 36 months from the completion
date of subscription for H shares (15 April 2020).

 
 
 
 
 
 

 

 
 
 
 
 
 
 
 
 
 

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  

 

- 5 -


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 to 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  

 

- 6 -


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.2

   Yes      0.10  
29   

Xiamen Airlines No.3

   Yes      0.09  
30   

Xiamen Airlines No.4

   Yes      0.19  
31   

Xiamen Airlines No.5

   Yes      0.19  
32   

Xiamen Airlines No.6

   Yes      0.20  
33   

Xiamen Airlines No.7

   Yes      0.11  
34   

Xiamen Airlines No.8

   Yes      0.19  
35   

Xiamen Airlines No.9

   Yes      0.19  
36   

Xiamen Airlines No.10

   Yes      0.19  
37   

Xiamen Airlines No.11

   Yes      0.19  
38   

Xiamen Airlines No.12

   Yes      0.13  
39   

Xiamen Airlines No.13

   Yes      0.19  
40   

Xiamen Airlines No.14

   Yes      0.18  
41   

Xiamen Airlines No.15

   Yes      0.18  
42   

Xiamen Airlines No.16

   Yes      0.13  
43   

Xiamen Airlines No.17

   Yes      0.12  
Total    /    /      53.79  

 

- 7 -


Note   

During the reporting period, pursuant to the authorization of the 2019 annual general meeting, Xiamen Airlines adjusted the guarantee limits of Xiamen Airlines No. 2 and Xiamen Airlines No.3 to US$10 million and US$9 million, respectively, within the authorized guarantee limit of US$274 million.

 

As at the end of reporting period, the total guarantee amounts actually provided for the aforementioned 43 SPVs by the Company and its subsidiaries, i.e. Xiamen Airlines and Chongqing Airlines, are US$5.379 billion (equivalent to approximately RMB34.147 billion, calculated based on the Renminbi central parity rate of US$1=RMB6.3482 published by the People’s Bank of China on 31 March 2022), 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 31 March 2022

Prepared by: China Southern Airlines Company Limited

Unit: Million     Currency: RMB Audit type: Unaudited

 

Items

   31 March 2022      31 December 2021  

Current assets:

     

Cash at bank and on hand

     20,048        21,841  

Settlement provisions

     

Loans to banks and other financial institutions

     

Held-for-trading financial assets

     

Derivative financial assets

     

Bills receivable

     —          4  

Accounts receivable

     3,116        2,894  

Receivables financing

     

Prepayments

     604        736  

Premiums receivable

     

 

- 8 -


Items

   31 March 2022      31 December 2021  

Reinsurance accounts receivable

     

Reinsurance contract reserves receivable

     

Other receivables

     1,384        1,275  

Including: Interest receivable

     

Dividends receivable

     4        5  

Financial assets purchased with agreement to resale

     

Inventories

     1,808        1,652  

Contract assets

     

Assets held for sale

     834        1,292  

Non-current assets due within one year

     112        138  

Other current assets

     7,521        8,034  

Total current assets

     35,427        37,866  

Non-current assets:

 

Loans and advances

     

Debt investments

     

Other debt investments

     

Derivative Financial assets

     5        —    

Long-term receivables

     644        645  

Long-term equity investments

     6,044        5,977  

Other equity instrument investments

     563        563  

Other non-current financial assets

     94        95  

Investment properties

     289        305  

Fixed assets

     91,789        90,817  

Construction in progress

     31,894        31,869  

Productive biological assets

     

Oil and gas assets

     

 

- 9 -


Items

   31 March 2022      31 December 2021  

Right-of-use assets

     129,124        132,725  

Intangible assets

     6,610        6,564  

Equipment rental deposits

     321        321  

Development expenses

     

Goodwill

     

Long-term deferred expenses

     719        768  

Deferred tax assets

     14,776        12,831  

Other non-current assets

     1,521        1,602  

Total non-current assets

     284,393        285,082  

Total assets

     319,820        322,948  

Current liabilities:

     

Short-term borrowings

     35,862        25,116  

Borrowings from the central bank

     

Loans from other banks

     

Held-for-trading financial liabilities

     

Derivative financial liabilities

     1,222        1,222  

Bills payable

     

Accounts payable

     13,579        12,183  

Sales in advance of carriage

     3,127        3,716  

Contract liabilities

     1,576        1,542  

Funds from selling out and repurchasing financial assets

     

Receipts of deposits and deposits from other banks

     

Accounts payable to brokerage customers

     

Proceeds from underwriting securities received on behalf of customers

     

Employee benefits payable

     2,609        4,457  

 

- 10 -


Items

   31 March 2022      31 December 2021  

Taxes payable

     773        1,140  

Other payables

     7,891        7,914  

Including: Interest payable

     

Dividends payable

     1        3  

Fees and commissions payable

     

Reinsurance accounts payable

     

Liabilities held for sale

     

Non-current liabilities due within one year

     30,122        28,990  

Other current liabilities

     21,179        24,710  

Total current liabilities

     117,940        110,990  

Non-current liabilities:

 

Reserves for insurance contracts

     

Long-term borrowings

     16,006        15,389  

Bonds payable

     19,428        22,965  

Including: Preferred shares

     

Perpetual bonds

     

Lease liabilities

     79,066        81,944  

Long-term payables

     162        193  

Provision for major overhauls

     5,202        4,820  

Long-term salaries payable

     

Accrued liabilities

     

Deferred income

     818        725  

Deferred tax liabilities

     26        26  

Other non-current liabilities

     1,466        1,651  

Total non-current liabilities

     122,174        127,713  

Total liabilities

     240,114        238,703  

 

- 11 -


Items

   31 March 2022      31 December 2021  

Owners’ equity (or shareholders’ equity):

 

Share capital (or issued capital)

     16,948        16,948  

Other equity instruments

     

Including: Preferred shares

     

Perpetual bonds

     

Capital reserve

     47,887        47,887  

Less: Inventory shares

     

Other comprehensive income

     159        159  

Specific reserve

     

Surplus reserve

     2,579        2,579  

General risk reserve

     

Retained earnings

     -4,453        43  

Total equity attributable to owners of the parent company (or shareholders of the Company)

     63,120        67,616  

Non-controlling interests

     16,586        16,629  

Total owners’ equity (or shareholders’ equity)

     79,706        84,245  

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

     319,820        322,948  

 

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

 

- 12 -


Consolidated Income Statement

For the three months ended 31 March 2022

Prepared by: China Southern Airlines Company Limited

Unit: Million     Currency: RMB Audit type: Unaudited

 

Items

   Three months ended
31 March 2022
     Three months ended
31 March 2021
 

I.   Total revenue

     21,471        21,253  

Including: Operating revenue

     21,471        21,253  

  Interest income

     

  Premiums earned

     

  Fees and commissions income

     

II. Total operating costs

     28,055        27,038  

Including: Cost of sales

     24,921        23,461  

  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

     75        65  

  Selling and administrative expenses

     1,045        1,131  

  General and administrative expenses

     760        766  

  Research and development expenses

     88        85  

  Financial expenses

     1,166        1,530  

  Including: Interest expenses

     1,516        1,600  

Interest income

     118        193  

 

- 13 -


Items

   Three months ended
31 March 2022
     Three months ended
31 March 2021
 

Add: Other income

     550        627  

  Investment income (“-” for losses)

     67        66  

  Including: Share of profit of associates and joint ventures

     67        66  

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)

     24        -363  

Credit losses (“-” for losses)

     —          1  

Impairment losses on assets (“–” for losses)

     —          1  

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

     36        50  

III.  Operating profit (“-” for losses)

     -5,907        -5,403  

Add: Non-operating income

     61        101  

Less: Non-operating expenses

     5        3  

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

     -5,851        -5,305  

Less: Income tax expenses

     -1,312        -1,191  

V. Net profit (“-” for net losses)

     -4,539        -4,114  

(I)   By continuity

     

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

     -4,539        -4,114  

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

     

(II)  By ownership

     

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

     -4,496        -4,006  

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

     -43        -108  

 

- 14 -


Items

   Three months ended
31 March 2022
     Three months ended
31 March 2021
 

VI.  Other comprehensive income, net of tax

     —          12  

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

     —          12  

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

     

(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

     

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

     

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

     —          12  

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

     —          3  

(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

     —          9  

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

     

(7)   Others

     

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

     

 

- 15 -


Items

   Three months ended
31 March 2022
     Three months ended
31 March 2021
 

VII.  Total comprehensive income

     -4,539        -4,102  

(I)   Attributable to shareholders of the Company

     -4,496        -3,994  

(II)  Attributable to non-controlling interests

     -43        -108  

VIII.  Earnings per share:

     

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

     -0.27        -0.26  

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

     -0.27        -0.26  

 

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

 

- 16 -


Consolidated Cash Flow Statement

For the three months ended 31 March 2022

Prepared by: China Southern Airlines Company Limited

Unit: Million    Currency: RMB Audit type: Unaudited

 

Items

   Three months ended
31 March 2022
     Three months ended
31 March 2021
 

I.   Cash flows from operating activities:

     

Proceeds from sale of goods and rendering of services

     23,211        21,870  

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

     

Refund of taxes and surcharges

     16        10  

Proceeds from other operating activities

     662        620  

Sub-total of operating cash inflows from operating activities

     23,889        22,500  

Payment for goods and services

     15,009        14,593  

 

- 17 -


Items

   Three months ended
31 March 2022
     Three months ended
31 March 2021
 

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

     7,398        6,934  

Payment of taxes and surcharges

     1,257        834  

Payment for other operating activities

     208        190  

Sub-total of cash outflows from operating activities

     23,872        22,551  

Net cash flows from operating activities

     17        -51  

II.   Cash flows from investment activities:

     

Cash received from return of investments

     

Cash received on investment income

     

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

     517        556  

Net cash received from disposal of subsidiaries and other operating units

     

Proceeds from other investing activities

     90        176  

Sub-total of cash inflows from investing activities

     607        732  

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

     3,441        4,284  

Cash paid for investment

     

Net increase in secured loans

     

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

     3,441        4,284  

Net cash flows from investing activities

     -2,834        -3,552  

 

- 18 -


Items

   Three months ended
31 March 2022
     Three months ended
31 March 2021
 

III. Cash flows from financing activities:

     

Proceeds from investors

     20        925  

Including: Investment received from non-controlling interests

     20        925  

Proceeds from borrowings

     14,490        21,117  

Proceeds from issuance of bonds

     14,400        25,000  

Proceeds from other financing activities

     —          18  

Sub-total of cash inflows from financing activities

     28,910        47,060  

Repayments of borrowings

     26,262        42,123  

Payment for dividends, profit distributions or interest

     1,567        1,735  

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

     

Payment for other financing activities

     

Sub-total of cash outflows from financing activities

     27,829        43,858  

Net cash flows from financing activities

     1,081        3,202  

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

     0        1  

V. Net increase in cash and cash equivalents

     -1,736        -400  

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

     21,456        25,419  

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

     19,720        25,019  

 

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

 

- 19 -


(III)

Adjustment to relevant items of the financial statements at the beginning of the first adoption year due to the first adoption of new leasing standards in 2022

☐  Applicable    ☒  Not applicable

 

By order of the Board

China Southern Airlines Company Limited Xie Bing

Company Secretary

Guangzhou, the People’s Republic of China

28 April 2022

As at the date of this announcement, the Directors include Ma Xu Lun and Han Wen Sheng as executive Directors; and Liu Chang Le, Gu Hui Zhong, Guo Wei and Yan Andrew Y as independent non-executive Directors.

 

- 20 -



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