Report of Foreign Issuer (6-k)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

Report of Foreign Private Issuer

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

under the Securities Exchange Act of 1934

For the month of April 2018

Commission File Number: 001-14550

China Eastern Airlines Corporation Limited

(Translation of Registrant’s name into English)

Board Secretariat’s Office

5/F, Block A2, Northern District, CEA Building

36 Hongxiang 3rd Road, Minhang District

Shanghai, China 200335

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of 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

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 Eastern Airlines Corporation Limited
			(Registrant)

Date	April 27, 2018	By	/s/ Wang Jian
		Name:	Wang Jian
		Title:	Company Secretary

Certain statements contained in this announcement may be regarded as “forward-looking statements” within the meaning 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. The forward-looking statements included in this announcement represent the Company’s views as of the date of this announcement. While the Company anticipates that subsequent events and developments may cause the Company’s views to change, the Company specifically disclaims any obligation to update these forward-looking statements, unless required by applicable laws. These forward-looking statements should not be relied upon as representing the Company’s views as of any date subsequent to the date of this announcement.

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: 00670)

2018 FIRST QUARTERLY REPORT

This announcement is made pursuant to the requirements under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) and Rule 13.09 and Rule 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

The financial statements of the Company for the first quarter of 2017 were not audited, and were prepared in accordance with the China Accounting Standards for Business Enterprises.

1.	IMPORTANT NOTICE

This announcement is made by China Eastern Airlines Corporation Limited (the “ Company ”) pursuant to the disclosure requirement under Rule 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “ Listing Rules ”) (which requires any issuer listed on The Stock Exchange of Hong Kong Limited (the “ Hong Kong Stock Exchange ”) whose securities are also listed on other stock exchange(s) to simultaneously inform the Hong Kong Stock Exchange of any information released to any of such other exchange(s) and to ensure that such information is released to the market in Hong Kong at the same time as it is released to the other market(s)). At the request of the Shanghai Stock Exchange, a similar announcement of the even date is being made simultaneously by the Company in Shanghai pursuant to the relevant provisions of the Shanghai listing rules and regulations.

This quarterly report was prepared in accordance with the regulations as prescribed by the China Securities Regulatory Commission in relation to disclosure of information in quarterly reports for listed companies, and is published simultaneously in Shanghai and Hong Kong. The financial statements of the Company for the first quarter of 2018 were not audited, and were prepared in accordance with the China Accounting Standards for Business Enterprises.

The board of directors (the “ Board ”) and the supervisory committee of the Company, and its directors, supervisors and senior management hereby confirm that the information set out in this quarterly report does not contain false information, misleading statement or material omission, and accept joint and several responsibility for the correctness, accuracy and completeness of the information set out in this quarterly report.

All directors of the Company attended the meeting of the Board to consider this quarterly report.

Liu Shaoyong, the person-in-charge of the Company, Ma Xulun, the officer-in-charge of accounting of the Company, and Wu Yongliang, the officer-in-charge of the accounting department (accounting officer) of the Company hereby confirm that the financial statements forming part of this quarterly report are true, accurate and complete.

During the first quarter of 2018, the Company achieved outstanding operating results. Net profit excluding non-recurring profit and loss attributable to shareholders of the listed company increased by 62.41% from last year, and net cash flows from operating activities increased by 147.13% from last year.

The financial statements in the first quarterly report of the Company are unaudited.

Pursuant to the notices regarding the “Accounting Standards for Business Enterprises No. 14 — Revenue”, “Accounting Standards for Business Enterprises No. 22 — Recognition and Measurement of Financial Instrument”, “Accounting Standards for Business Enterprises No. 23 — Transfer of Financial Assets”, “Accounting Standards for Business Enterprises No. 24 — Hedge Accounting” and “Accounting Standards for Business Enterprises No. 37 — Presentation and Reporting of Financial Instrument” amended and published by the Ministry of Finance of the People’s Republic of China, the Company began to apply those amended Accounting Standards for Business Enterprises from 1 January 2018 onwards. The Company adjusted the opening balance of retained earnings in 2018 and increased the opening balance of undistributed profits for the period amounted to RMB352 million for the cumulative effect of initial application of such standards.

2.	MAIN FINANCIAL DATA AND CHANGES IN SHAREHOLDERS OF THE COMPANY

2.1

Main financial data

Unit: million Currency: RMB

Increase/decrease

as at the end

of the reporting

As at the

period compared

end of the

As at the end

with the end

reporting period

of last year

(%)

Total assets

227,472

227,464

0.00

Net assets attributable to shareholders of the listed company

55,383

53,106

4.29

From the

Increase/

beginning of the

beginning of last

decrease

year to the end

compared

of the reporting

with the same

period

period last year

(%)

Net cash flows from operating activities

6,376

2,580

147. 13

From the

Increase/

beginning of the

beginning of last

decrease

year to the end

compared

of the reporting

with the same

period

period last year

(%)

Revenue

26,753

24,536

9.04

Net profit attributable to shareholders of the listed company

1,983

2,818

-29.63

Net profit attributable to shareholders of the listed company after deducting non-recurring profit and loss

1,897

1,168

62.41

Decreased by

Weighted average return on net assets (%)

3.64

5.79

2.15 pts

Basic earnings per share (RMB/share)

0.1371

0.1948

-29.63

Diluted earnings per share (RMB/share)

0.1371

0.1948

-29.63

Non-recurring profit and loss and relevant amounts


	Unit: million Currency: RMB
	Amount for
Item	the period
Gains or losses from disposal of non-current assets		2
Non-operating incomes and expenses other than the above		117
Effect on minority interests (net of tax)		(3	)
Effect on income tax		(30	)

Total		86

2.2

The total number of the Company’s shareholders and the shareholding of the 10 largest shareholders and the shareholding of the 10 largest holders of listed shares (or holders of shares without trading moratorium) as at the end of the reporting period


	Unit: Shares
Total number of shareholders		228,532


Shareholding of the 10 largest shareholders
					Number of shares with		Pledged or locked-up
Name of shareholder (in full)	Shareholdings as at the end of the period		Proportion		trading moratorium held		Status of shares		Number of shares		Nature of shareholders
			(%)
China Eastern Air Holding Company Limited ( 中國東方航空集團有限公司 )		5,072,922,927		35.06		0		Nil		0		State-owned legal person

HKSCC NOMINEES LIMITED		4,183,499,289		28.92		0		Unknown ^Note		—		Overseas legal person

China Securities Finance Corporation Limited ( 中國證券金融股份有限公司 )		513,064,959		3.55		0		Nil		0		State-owned legal person

China National Aviation Fuel Holding Company ( 中國航空油料集團公司 )		504,767,895		3.49		0		Nil		0		State-owned legal person

Delta Air Lines, Inc.		465,910,000		3.22		0		Nil		0		Overseas legal person

Shanghai Licheng Information Technology Consulting Co., Ltd. ( 上海勵程信息技術諮詢有限公司 )		465,838,509		3.22		0		Pledged		465,838,509		Domestic nonstate-owned legal person

CES Finance Holding Co., Ltd. ( 東航金控有限責任公司 )		457,317,073		3.16		0		Nil		0		State-owned legal person

China COSCO Shipping Corporation Limited ( 中國遠洋海運集團有限公司 )		232,919,254		1.61		0		Nil		0		State-owned legal person

Central Huijin Asset Management Ltd. ( 中央匯金資產管理有限責任公司 )		70,984,100		0.49		0		Nil		0		State-owned legal person

China Construction Bank Corporation —Boshi Industry Mixed Securities Investment Fund (LOF) ( 中國建設銀行股份有限公司 — 博時主題行業混合型證券投資基金 (LOF))		70,000,000		0.48		0		Nil		0		Unknown


Shareholding of the 10 largest holders of shares without trading moratorium
Name of shareholder	Number of listed shares without trading moratorium held		Class and number of shares
			Class		Number
China Eastern Air Holding Company Limited ( 中國東方航空集團有限公司 )		5,072,922,927		RMB ordinary shares		5,072,922,927

HKSCC NOMINEES LIMITED		4,183,499,289		Overseas listed foreign shares		4,183,499,289

China Securities Finance Corporation Limited ( 中國證券金融股份有限公司 )		513,064,959		RMB ordinary shares		513,064,959

China National Aviation Fuel Holding Company ( 中國航空油料集團公司 )		504,767,895		RMB ordinary shares		504,767,895

Delta Air Lines, Inc.		465,910,000		Overseas listed foreign shares		465,910,000

Shanghai Licheng Information Technology Consulting Co., Limited ( 上海勵程信息技術諮詢有限公司 )		465,838,509		RMB ordinary shares		465,838,509

CES Finance Holding Co., Ltd. ( 東航金控有限責任公司 )		457,317,073		RMB ordinary shares		457,317,073

China COSCO Shipping Corporation Limited ( 中國遠洋海運集團有限公司 )		232,919,254		RMB ordinary shares		232,919,254

Central Huijin Asset Management Ltd. ( 中央匯金資產管理有限責任公司 )		70,984,100		RMB ordinary shares		70,984,100

China Construction Bank Corporation —Boshi Industry Mixed Securities Investment Fund (LOF) ( 中國建設銀行股份有限公司 — 博時主題行業混合型證券投資基金 (LOF))		70,000,000		RMB ordinary shares		70,000,000


Description of connected relationship or activities in concert among the above shareholders		Among the 4,183,499,289 shares held by HKSCC NOMINEES LIMITED, 2,626,240,000 shares are held by CES Global Holdings (Hong Kong) Limited (“ CES Global ”) in the capacity of beneficial owner; China Eastern Air Holding Company Limited (“ CEA Holding ”) owns 100% equity interest in CES Finance Holding Co., Ltd (“ CES Finance ”); CES Finance owns 100% equity interest in CES Global; thus, CEA Holding indirectly owns 100% equity interests in CES Global. The Company is not aware of any other connected relationship or activities in concert among the 10 largest holders of shares without trading moratorium.

Note:

As of 20 March 2018, 260,000,000 H shares of the Company pledged to The Hong Kong and Shanghai Banking Corporation Limited by CES Global, a shareholder of the Company, had been released. As at the date of this announcement, CES Global has pledged a total of 1,450,000,000 H shares of the Company. For details, please refer to the announcement of the Company published on the websites of the Shanghai Stock Exchange and Hong Kong Stock Exchange on 20 March 2018.

3.	IMPORTANT MATTERS

3.1

Details of and reasons for the substantial changes in main items of financial statements and financial indicators of the Company

During the first quarter of 2018, the Company achieved passenger traffic volume amounted to 48.336 billion passenger-kilometres, representing an increase of 9.08% from last year; and served 28.7161 million travelers, representing an increase of 7.7% from last year; and achieved passenger load factor of 81.69%, basically remained the same as last year.

During the first quarter of 2018, the Company achieved outstanding operating results. Operating income amounted to RMB26,753 million, total profits amounted to RMB2,766 million and net profit attributable to shareholders of parent company amounted to RMB1,983 million. During the first quarter of 2018, the Company achieved net profit excluding non-recurring profit and loss attributable to shareholders of the listed company amounted to RMB1,897 million, representing an increase of 62.41% from last year.

During the first quarter of 2018, the Company’s net profit attributable to shareholders of the listed company reduced by 29.63% from last year, which was mainly due to one-off gain amounted to RMB1,754 million from the disposal of certain business and assets of the Company during the first quarter of 2017.


	Change
	compared
	to the end
Item	of last year	Reason for the Change
Monetary capital	-38.12%	Primarily due to the enhancement of the capital turnover efficiency during the reporting period and the decrease in the fund held as compared to the end of last year

Trade receivables	-34.32%	Primarily due to the decrease in the estimated notes receivables to be received from the clearing centre

Prepayments	60.86%	Primarily due to the increase in advance payment for meals on aircraft made by the Company


	Change
	compared
	to the end
Item	of last year	Reason for the Change
Non-current assets classified as held for sale	-100.00%

Deferred income tax assets	54.10%	Primarily due to the completion of the disposal of Shanghai Airlines Travel Hotel and Investment Management Co. Ltd. by the Company during the

Non-current liabilities classified as held for sale	-100.00%	reporting period

Hedge Instruments	61.11%	Primarily due to the decrease in the fair value of the foreign exchange forward contracts held by the Company during the reporting period

Bill payables	-74.08%	Primarily due to the payment of commercial bills of exchange to certain suppliers by the Company during the reporting period

Other current liabilities	-70.00%	Primarily due to the repayment of super short-term commercial paper during the reporting period

Long-term borrowings	54.83%	Primarily due to the Company’s new RMB- denominated long-term borrowings during the reporting period

Deferred income tax liabilities	650.00%	Primarily due to the effects incurred on pledged income tax by the adjusted accumulative amount as a result of the amended “Accounting Standard for Business Enterprises No. 14 – Revenue” applicable to the Company

	Change
	compared
Item	to last year	Reason for the Change
Finance costs	-191.72%	Primarily due to the substantial increase in the realization of exchange gains of RMB1,464 million during the reporting period, as compared to exchange gains of RMB188 million last year

Investment income	-96.20%	Primarily due to the disposal of equity interest in Eastern Air Logistics Co., Ltd. ( “Eastern Logistics” ) by the Company last year, resulting in an investment income of RMB1,754 million


	Change
	compared
Item	to last year	Reason for the Change
Non-operating income	-84.61%	Primarily due to the Company’s reclassification of government grants in relation to its ordinary business and income from jointly-operated routes from “non- operating incomes” to “other income” in the income statement pursuant to the “Accounting Standards for Business Enterprises No. 16 – Government Grant” published by the Ministry of Finance of the People’s Republic of China

Refund of taxes	140.30%	Primarily due to the increase in the tax exemption and tax credit in respect of value-added tax received by the Company during the reporting period

Cash received from disposal of investment	-100.00%	Primarily due to the disposal of equity interest in Eastern Logistics last year by the Company

Cash received from borrowings	-33.94%	Primarily due to the improvement of the debt structure of the Company through financing via channels including issuance of super short- term commercial paper and acquisition of bank borrowings last year

3.2

Analysis of the progress of significant events and their effects and proposed solutions

(1)

Establishment of Special Purpose Vehicles and provision of guarantee

On 19 January 2018, in order to successfully change the operating leases of the existing 67 aircraft from overseas leasing to domestic leasing, the 2018 11th ordinary meeting of the eighth session of the Board considered and approved to invest in and establish not more than 67 special purpose vehicles in Dongjiang Free Trade Port Zone of Tianjin and to provide them guarantees with an aggregate amount of not more than RMB9.8 billion meeting. The matter regarding the guarantees was considered and approved at the 2018 first extraordinary general meeting of the Company held on 8 February 2018. For details, please refer to the announcements of the Company published on the websites of the Shanghai Stock Exchange and Hong Kong Stock Exchange on 19 January and 8 February 2018.

(2)

Issuance of JPY-denominated credit enhanced bonds

On 2 February 2018, the application for the listing of bonds denominated in Japanese Yen of the Company was approved by Tokyo Stock Exchange. On 9 March 2018, the Company issued the JPY-denominated credit enhanced bonds. On 19 March 2018, the Company listed the JPY-denominated credit enhanced bonds. For details, please refer to the announcements of the Company published on the websites of the Shanghai Stock Exchange and Hong Kong Stock Exchange on 2 February, 9 March and 19 March 2018.

(3)

Resignation of director and election of employee representative director

On 6 February 2018, Mr. Xu Zhao has resigned from his position as a director and a member of the Audit and Risk Management Committee of the Company. On 8 February 2018, Mr. Yuan Jun was elected as an employee representative director of the Company at the sixth session of the Company’s fourth general meeting of the employee representatives. On 29 March 2018, the Board has appointed Mr. Cai Hongping as a member of the eighth session of the Audit and Risk Management Committee of the Board. For details, please refer to the announcements of the Company published on the websites of the Shanghai Stock Exchange and Hong Kong Stock Exchange on 6 February, 8 February and 29 March 2018.

(4)

Contractual operation of the bellyhold space

On 1 March 2018, the Company entered into contractual operation agreement and operation cost agreement (“ Bellyhold Space Agreements ”) with China Cargo Airlines Co., Limited (“ China Cargo Airlines ”). The Company will let China Cargo Airlines operate the bellyhold space business as a long-term contractor. The Company will receive contractual fees and revenue of the contractual operation from China Cargo Airlines, and reimburse the operation cost to China Cargo Airlines. On 29 March 2018, the 2018 first extraordinary general meeting of the Company considered and passed the resolution regarding the Bellyhold Space Agreements and the transactions contemplated thereunder as well as the resolution regarding the transactions under contractual operation of the Company’s bellyhold space and the annual caps for daily connected transactions from 2018 to 2019. For details, please refer to the announcements of the Company published on the website of the Shanghai Stock Exchange on 1 March and 29 March 2018 and on the website of Hong Kong Stock Exchange on 1 March, 12 March 2018 and 29 March 2018.

(5)

2017 profit distribution proposal

On 29 March 2018, the 2017 profit distribution proposal of the Company was considered and approved during the 2018 second regular meeting of the eighth session of the Board. The Company proposed to distribute cash dividends amounted to approximately RMB740.25 million for the year 2017. With the total share capital of the Company being 14,467,585,682 shares, cash dividends distributed per share amounted to RMB0.051 (tax inclusive) and shall be paid to holders of A shares of the Company in Renminbi and holders of H shares of the Company in Hong Kong Dollars. The proposal shall be submitted to the 2017 annual general meeting (“ AGM ”) of the Company for consideration and approval. For details, please refer to the announcements of the Company published on the websites of the Shanghai Stock Exchange and Hong Kong Stock Exchange on 29 March 2018.

(6)

Amendment of certain provisions of the Articles of Association

On 29 March 2018, the resolution regarding the “amendments to certain provisions of the articles of association” was considered and approved during the 2018 second regular meeting of the eighth session of the Board. The above resolution shall be submitted to the 2017 AGM of the Company for consideration and approval. For details, please refer to the announcement of the Company published on the websites of the Shanghai Stock Exchange and Hong Kong Stock Exchange on 29 March 2018.

3.3

The status of implementation of the matters undertaken by the Company and shareholders holding more than 5% interests

Whether the

undertaking

has been

Whether

strictly

Time and

there is an

implemented

Background of

Type of

Undertaking

term of

implementation

in a timely

undertaking

party

Content of undertaking

undertaking

period

manner

Other undertaking

Trading moratorium of shares

CEA Holding/CES Finance

CEA Holding and CES Finance undertook that they will not dispose of the 241,547,927 A shares and 457,317,073 A shares held by each of them, within 24 months from the lifting of the trading moratorium on 18 April 2016.

Time of undertaking: April 2016; term of undertaking: from 18 April 2016 to 17 April 2018

Yes

Completed

3.4

Warning of and reasons for any expected accumulated losses from the beginning of the year to the end of the following reporting period or substantial changes in profitability compared to the same period last year

Not applicable

By order of the Board

CHINA EASTERN AIRLINES CORPORATION LIMITED

Liu Shaoyong

Chairman

Shanghai, the People’s Republic of China 26 April 2018

As at the date of this announcement, the directors of the Company include Liu Shaoyong (Chairman), Ma Xulun (Vice Chairman, President), Li Yangmin (Director, Vice President), Gu Jiadan (Director), Tang Bing (Director, Vice President), Tian Liuwen (Director, Vice President), Yuan Jun (Employee representative Director), Li Ruoshan (Independent non-executive Director), Ma Weihua (Independent non-executive Director), Shao Ruiqing (Independent non-executive Director) and Cai Hongping (Independent non-executive Director).

4.	APPENDICES

4.1

Financial Statements

China Eastern Airlines Corporation Limited

Consolidated and Company’s Balance Sheet as at 31 March 2018


RMB million
Assets	31 March 2018 Consolidated		31 December 2017 Consolidated		31 March 2018 Company		31 December 2017 Company
Current assets
Monetary capital		2,881		4,656		2,321		3,914
Trade receivables		1,395		2,124		2,090		2,812
Prepayments		933		580		296		180
Dividends receivable		145		183		145		185
Other receivables		4,531		4,674		14,468		15,454
Inventory		2,186		2,185		24		38
Held-for-Sale assets		0		14		—		—
Non-current assets due within one year		76		76		69		69
Other current assets		4,010		3,801		3,850		3,608

Total current assets		16,157		18,293		23,263		26,260

Non-current assets
Financial assets measured at fair value		756		800		669		713
Hedge instruments		151		151		151		151
Investment properties		301		302		27		27
Long-term equity investment		2,283		2,211		15,189		15,104
Fixed assets		164,700		163,130		106,173		106,058
Construction in progress		28,888		28,780		28,169		28,077
Intangible assets		2,035		2,043		1,354		1,358
Goodwill		9,028		9,028		9,028		9,028
Long-term deferred expenses		1,983		1,543		1,680		1,308
Deferred income tax assets		188		122		45		45
Other non-current assets		1,002		1,061		902		949

Total non-current assets		211,315		209,171		163,387		162,818

Total assets		227,472		227,464		186,650		189,078

4.1

Financial Statements (Cont’d)

China Eastern Airlines Corporation Limited

Consolidated and Company’s Balance Sheet as at 31 March 2018 (Cont’d)


RMB million
Liabilities and shareholders’ equity	31 March 2018 Consolidated		31 December 2017 Consolidated		31 March 2018 Company		31 December 2017 Company
Current liabilities
Short-term borrowings		24,300		24,959		30,321		27,202
Hedge instruments		522		324		522		324
Notes payable		304		1,173		304		1,147
Trade payables		13,900		11,036		12,485		10,022
Account collected in advance		1,662		1,342		1,289		1,036
Settlement of vouchers		5,129		7,043		4,971		6,869
Staff remuneration payable		2,422		3,034		1,669		2,007
Tax payable		1,539		2,076		504		944
Interest payable		1,066		1,084		846		844
Other payables		2,402		2,855		9,396		11,040
Held-for-sale liabilities		0		8		—		—
Non-current liabilities due within one year		12,845		15,391		6,535		9,153
Other current liabilities		3,000		10,000		3,000		10,000

Total current liabilities		69,091		80,325		71,842		80,588

Non-current liabilities
Long-term borrowings		7,624		4,924		4,126		4,338
Hedge instruments		1		1		1		1
Bonds payable		22,648		19,787		20,257		17,352
Long-term payables		63,750		60,746		41,543		39,169
Long-term staff remuneration payable		2,795		2,800		2,202		2,199
Special items payable		84		83		69		67
Other non-current liabilities		2,374		2,262		1,484		1,371
Deferred income tax liabilities		135		18		117		0

Total non-current liabilities		99,411		90,621		69,799		64,497

Total liabilities		168,502		170,946		141,641		145,085

4.1

Financial Statements (Cont’d)

China Eastern Airlines Corporation Limited

Consolidated and Company’s Balance Sheet as at 31 March 2018 (Cont’d)


RMB million
Liabilities and shareholders’ equity	31 March 2018 Consolidated			31 December 2017 Consolidated			31 March 2018 Company			31 December 2017 Company
Shareholders’ equity
Share capital		14,467			14,467			14,467			14,467
Capital reserves		26,760			26,760			27,470			27,470
Other comprehensive income		(2,598	)		(2,540	)		(1,963	)		(1,909	)
Surplus reserves		540			540			540			540
Undistributed profits		16,214			13,879			4,495			3,425

Total equity attributable to shareholders of parent company		55,383			53,106			45,009			43,993
Minority interests		3,587			3,412			—			—

Total shareholders’ equity		58,970			56,518			44,791			43,993

Total liabilities and shareholders’ equity		227,472			227,464			186,650			189,078

The financial statements are signed by:

Person-in-charge of the Company: Liu Shaoyong

Officer-in-charge of accounting: Ma Xulun

Officer-in-charge of the accounting department: Wu Yongliang

4.1

Financial Statements (Cont’d)

China Eastern Airlines Corporation Limited

Consolidated and Company’s Income Statement for the Period from January to March 2018 (Cont’d)


RMB million
Item	Jan to Mar 2018 Consolidated			Jan to Mar 2017 Consolidated		Jan to Mar 2018 Company			Jan to Mar 2017 Company
Revenue		26,753			24,536		15,753			14,116
Less: Operating costs		23,563			21,484		14,407			12,774
Operating taxes and surcharges		62			65		16			11
Selling expenses		1,359			1,319		985			934
Administrative expenses		669			624		451			379
Finance expenses, net		(465	)		507		(413	)		431
Assets impairment loss		1			—		—			—
Add: Gains arising from changes in fair value		(209	)		—		(209	)		—
Investment gains		70			1,844		80			841
Gains from disposal of assets		3			—		1			—
Other gains		1,152			—		650			—

Operating profit		2,580			2,381		829			428
Add: Non-operating income		189			1,228		131			739
Less: Non-operating expenses		3			4		2			2

Total profits		2,766			3,605		958			1,165
Less: Income tax expenses		608			621		240			291

Net profit		2,158			2,984		718			874
Classified by continuation of business
Net profit from continuing activities		2,158			2,984
Net profit from discontinuing activities		—			—

Classified by ownership Net profit attributable to shareholders of parent company		1,983			2,818
Minority interests		175			166

4.1

Financial Statements (Cont’d)

China Eastern Airlines Corporation Limited

Consolidated and Company’s Income Statement for the Period from January to March 2018 (Cont’d)


RMB million
Item	Jan to Mar 2018 Consolidated		Jan to Mar 2017 Consolidated		Jan to Mar 2018 Company		Jan to Mar 2017 Company
Other comprehensive income, net of tax		-58		-264		-54		-124

Other comprehensive income that cannot be reclassified into profit or loss in subsequent accounting period Changes arising from re-measuring net assets or net liabilities of defined benefit plan		-20		-410		-15		34

Other comprehensive income that will be reclassified into profit or loss in subsequent accounting period when meeting the prescribed conditions the share of other comprehensive income of investees to be reclassified into profit and loss under the equity method		-5		-1		-6		-7

Fair value movements of available- for-sale financial assets		-34		40		-34		27

Effective portion of gains or losses from cash flow hedge instruments		1		107		1		-178

Of which:
Other comprehensive income, net of tax, attributable to shareholders of the parent company		-58		-261
Other comprehensive income, net of tax, attributable to minority interests		—		-3
Total comprehensive income		2,100		2,720		664		750

— Total comprehensive income attributable to shareholders of the parent company		1,925		2,557
— Total comprehensive income attributable to minority interests		175		163

Earnings per share
Basis earnings per share (in RMB)		0.14		0.19
Diluted earnings per share (in RMB)		0.14		0.19

4.1

Financial Statements (Cont’d)

China Eastern Airlines Corporation Limited

Consolidated and Company’s Cash Flow Statement for the Period from January to March 2018

RMB million

1. Cash flow from operating activities

Cash received from sales of goods and provision of labour services

28,277

25,384

15,490

13,017

Refund of taxes

1,377

573

1,374

573

Other cash received from operating activities

2,236

2,358

1,768

1,641

Sub-total of cash inflow from operating activities

31,890

28,315

18,632

15,231

Cash paid for purchase of goods and receiving of labour services

18,194

16,867

10,855

9,061

Cash paid to and for employees

4,162

5,681

2,019

2,639

Taxes paid

1,189

931

767

608

Other cash paid for operating activities

1,969

2,256

1,766

1,992

Sub-total of cash outflow from operating activities

25,514

25,735

15,407

14,300

Net cash flows from operating activities

6,376

2,580

3,225

931

4.1

Financial Statements (Cont’d)

China Eastern Airlines Corporation Limited

Consolidated and Company’s Cash Flow Statement for the Period from January to March 2018 (Cont’d)


RMB million
Item	Jan to Mar 2018 Consolidated			Jan to Mar 2017 Consolidated			Jan to Mar 2018 Company			Jan to Mar 2017 Company
2. Cash flow from investing activities
Cash received from disposal of investment		—			2,444			—			2,433
Investment income in cash		41			16			41			16
Other cash received from investing activities		12			29			12			7

Sub-total of cash inflow from investing activities		53			2,489			53			2,456

Amount paid in cash in relation to purchases of fixed assets, intangible assets and other long-term assets		4,128			5,324			3,089			4,897
Investments paid in cash		16			—			16			—

Sub-total of cash outflow from investing activities		4,144			5,324			3,105			4,897

Net cash flow from investing activities		(4,091	)		(2,835	)		(3,052	)		(2,441	)

4.1

Financial Statements (Cont’d)

China Eastern Airlines Corporation Limited

Consolidated and Company’s Cash Flow Statement for the Period from January to March 2018 (Cont’d)


RMB million
Item	Jan to Mar 2018 Consolidated			Jan to Mar 2017 Consolidated		Jan to Mar 2018 Company			Jan to Mar 2017 Company
3. Cash flow from financing activities
Cash received from borrowings		10,261			15,533		11,637			14,073
Cash received from issuance of bonds		2,975			—		2,975			—
Sub-total of cash inflow from financing activities		13,236			15,533		14,612			14,073
Cash paid for repayment of indebtedness		13,947			11,115		14,368			9,238
Cash payments for distribution of dividends, profits expense or payment of interest		1,162			998		940			730
Other cash paid for financing activities		2,233			2,674		1,044			1,864

Sub-total of cash outflow from financing activities		17,342			14,787		16,352			11,832

Net cash flow from financing activities		(4,106	)		746		(1,740	)		2,241

4. Effect of changes in exchange rate on cash and cash equivalents		(71	)		32		(71	)		24

5. Net increase in cash and cash equivalents		(1,892	)		523		(1,638	)		755
Add: Balance of cash and cash equivalents at the beginning of the year		4,616			1,695		3,882			976

6. Balance of cash and cash equivalents at the end of the year		2,724			2,218		2,244			1,731