China Southern Airlines Announces 2004 Annual Results.HONG KONG Hong Kong (hŏng kŏng), Mandarin Xianggang, special administrative region of China, formerly a British crown colony (2005 est. pop. 6,899,000), land area 422 sq mi (1,092 sq km), adjacent to Guangdong prov. -- China Southern Airlines China Southern Airlines (中国南方航空公司) (SEHK: 1055, NYSE: ZNH) is an airline based in Guangzhou in the Guangdong province of the People's Republic of China. Company Limited ("China Southern Airlines" or the "Company") together with its subsidiaries (collectively, the "Group") announced the audited consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: results of the Group for the year ended 31 December December: see month. 2004 (the "Year"), prepared in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with the PRC Accounting Rules and Regulations ("PRC GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ") and International Financial Reporting Standards International Financial Reporting Standards (IFRS) are standards and interpretations adopted by the International Accounting Standards Board (IASB). Many of the standards forming part of IFRS are known by the older name of International Accounting Standards (IAS). ("IFRS IFRS International Financial Reporting Standard(s) IFRS Inter Frame Relay Service IFRS Indiana Facilities Registry System "). In accordance with PRC GAAP, the Group's revenue from principal operations was approximately RMB RMB Right Mouse Button RMB Regional Management Board (USACE) RMB Rolf Maier Bode (musician, band) RMB Ren Min Bi (currency of People's Republic of China) 24,194 million (2003: RMB17,351 million); net profit was approximately RMB103 million (2003: RMB15 million). In accordance with IFRS, the Group's total operating revenue operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. was approximately RMB23,974 million (2003: RMB17,470 million); loss attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to shareholders was approximately RMB48 million (2003 loss: RMB358 million). Basic loss per share was RMB0.01 (2003 loss per share: RMB0.09). The Board of Directors of the Company did not recommend any final dividend for year 2004. Mr. Liu Shao There are two significant Chinese historical personalities named Liu Shao (劉劭):
“Yung” redirects here. For other uses, see Yung (disambiguation). , the Company's Chairman, said, "In 2004, the demand in the PRC civil aviation market sustained the growth trend from the second half of 2003. As a result, the Group recorded a year-on-year growth of more than 37% in total operating revenue, marking a breakthrough achievement in the Group's history. However, as instabilities in the world economy and in global politics continued to drive up the prices of aviation fuel in the international market, fuel costs rose substantially and now accounted for more than 30% of the operating costs operating costs npl → gastos mpl operacionales of the Group. Given the substantial rise in fuel costs, the Group adopted various technical measures, including the preparation of precise flight plans and minimisation of turnaround time (1) In batch processing, the time it takes to receive finished reports after submission of documents or files for processing. In an online environment, turnaround time is the same as response time. , so as to reduce fuel consumption without compromising flight safety." During the Year, passenger revenue, which accounted for 90.4% of the Group's total traffic revenue, amounted to RMB21,100 million, a rise of 40.6% over 2003. Passenger revenues on domestic routes, Hong Kong regional routes and international routes were RMB16,869 million, RMB1,104 million and RMB3,127 million respectively, representing increases of 37.8%, 47.2% and 55.0% respectively. Passenger load factor increased by 4.6 percentage points to 69.2% in 2004. Passenger yield (in passenger revenue per RPK RPK Republican Party of Kentucky RpK Rocketplane Kistler (Oklahoma City, OK aerospace company) RPK Revenue Passenger Kilometre RPK Random Player Killing (gaming) ) remained steady at RMB0.57 for both years. Average yield (in traffic revenue per RTK RTK Right To Know RTK Romance of the Three Kingdoms (novel/game) RTK Real-Time Kinematic RTK Receptor Tyrosine Kinase RTK Real-Time Kernel RTK Reclaim the Kop (fan club) ) increased by 5.3% from RMB4.76 in 2003 to RMB5.01 in 2004. In 2004, the Company successfully acquired the core aviation business assets of China Northern Airlines China Northern Airliners (simplified Chinese: 中国北方航空; pinyin: Zhōngguó Běifāng Hángkōng), was an airline based in Taoxian International Airport, Shenyang, Liaoning Province, China. Company and Xinjiang Xinjiang (shĭn`jyäng`) or Sinkiang (shĭn`jyäng`, sĭn`kyăng) [Chinese,=new frontier], officially Xinjiang Uygur Autonomous Region (Mandarin Xinjiang Uygur Zizhiqu Airlines Company, providing a robust platform for the Group to consolidate Consolidate To combine the assets, liabilities, and other financial items of two or more entities into one. Notes: This term is generally used in the context of consolidated financial statements. its market leadership and financial results. It also brought in various benefits for the Group, including expansions in flight service network, fleet size and transport capacity, as well as lowered costs and improved overall efficiency. Given the investment incentive policies such as "Go West" and "Revitalising Adj. 1. revitalising - tending to impart new life and vigor to; "the renewing warmth of the sunshine" renewing, restorative, revitalizing, reviving invigorating - imparting strength and vitality; "the invigorating mountain air" the Old Industrial Bases in the North-eastern Region promulgated prom·ul·gate tr.v. prom·ul·gat·ed, prom·ul·gat·ing, prom·ul·gates 1. To make known (a decree, for example) by public declaration; announce officially. See Synonyms at announce. 2. by the PRC government, the economy in the western and north-eastern regions of the PRC is expected to grow at a rapid pace in the coming decade or so. This is expected to provide substantial growth potential for the Group. Looking ahead, Mr. Liu Shao Yong said, "2005 is expected to be a year of challenge for the Group. While managing the integrated post-acquisition operations of the Group, the Group will also face increasing competition due to increasing supply in capacity in the PRC aviation market. In anticipation of this, the Group will continue to adopt various measures including optimising its service offerings, flight schedule and route networks by improving the integrated management and resources allocation The apportionment or designation of an item for a specific purpose or to a particular place. In the law of trusts, the allocation of cash dividends earned by a stock that makes up the principal of a trust for a beneficiary usually means that the dividends will be treated as ; enhancing pilot training and flight supervision to ensure flight safety; reinforcing the sales by building an integrate route network and improve the revenue sharing revenue sharing Funding arrangement in which one government unit grants a portion of its tax income to another government unit. For example, provinces or states may share revenue with local governments, or national governments may share revenue with provinces or states. scheme; providing e-commerce e-commerce, commerce conducted over the Internet, most often via the World Wide Web. E-commerce can apply to purchases made through the Web or to business-to-business activities such as inventory transfers. services; strengthening the cargo operation in the international and regional markets; exercising stringent cost controls by decentralising Adj. 1. decentralising - tending away from a central point decentralizing centralising, centralizing - tending to draw to a central point centralising, centralizing - tending to draw to a central point budget management and integrating purchasing and maintenance operations; and trying all possible means to minimise the impact of fuel costs, with a view to maintaining and increasing the Group's market share and business revenues." The Group is one of the largest airlines in the PRC in terms of volume of passenger traffic, number of scheduled flights scheduled flight schedule n → vol régulier scheduled flight schedule n → Linienflug m per week, number of hours flown, number of routes and size of aircraft fleet. The Group operates the most extensive route network among all PRC airlines. As at 31 December 2004, the Group operated a total of 542 routes, of which 434 were domestic, 85 were international and 23 were Hong Kong regional. For the year ended 31 December 2004, the Group operated an average of 5,280 landings and take-offs per week, serving 143 destinations. As at 31 December 2004, the Group operated a fleet of 231 aircraft and the average age of the Group's fleet was 7.47 years. Encl. 1. Audited Consolidated Income Statement consolidated income statement An income statement that combines the income statements of two or more organizations. As with other consolidated statements, a consolidated income statement eliminates any funds owed to or due from firms within the same group. (Prepared in accordance with PRC GAAP) 2. Audited Consolidated Income Statement (Prepared in accordance with IFRS) 3. Difference between financial results prepared under IFRS and PRC GAAP
China Southern Airlines Company Limited
Audited Consolidated Income Statement
For the Year ended 31 December 2004
(in accordance with the PRC Accounting Rules and Regulations)
2004 2003
(RMB million) (RMB million)
Revenue from principal operations 24,194 17,351
Less: Transfer to CAAC Infrastructure
Development Fund - 251
-------------- ---------------
Net revenue from principal operations 24,194 17,100
Less: Costs of principal operations 19,296 14,222
Business taxes and surcharges 692 191
-------------- ---------------
Profit from principal operations 4,206 2,687
Add: Profit from other operations 135 326
Less: Selling expenses 2,058 1,519
Administrative expenses 1,226 893
Financial expenses 727 996
-------------- ---------------
Operating profit / (loss) 330 (395)
Add: Investment income 63 62
Non-operating income 126 43
Less: Non-operating expenses 127 71
-------------- ---------------
Profit / (loss) before income tax 392 (361)
Less: Income tax 87 (605)
Minority interests 202 229
-------------- ---------------
Net profit 103 15
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China Southern Airlines Company Limited
Audited Consolidated Income Statement
For the Year ended 31 December 2004
(in accordance with International Financial Reporting Standards)
2004
vs 2003
2004 2003 2004 2004 Increase/
RMB RMB HK$ US$ (decrease)
million million million million %
Traffic revenue:
Passenger 21,100 15,010 19,889 2,550 40.6
Cargo and Mail 2,244 1,955 2,115 271 14.8
--------- ---------- --------- -----------
23,344 16,965 22,004 2,821 37.6
Other operating
revenue 630 505 594 76 24.8
--------- ---------- --------- -----------
Total operating
revenue 23,974 17,470 22,598 2,897 37.2
--------- ---------- --------- -----------
Operating
expenses:
Flight
operations 10,418 7,070 9,820 1,259 47.4
Maintenance 3,459 2,589 3,261 418 33.6
Aircraft and
traffic
servicing 3,503 2,767 3,302 423 26.6
Promotion and
sales 1,940 1,480 1,829 234 31.1
General and
administrative 1,323 1,053 1,247 160 25.6
Depreciation
and
amortisation 2,413 2,038 2,274 292 18.4
Other 9 17 8 1 (47.1)
--------- ---------- --------- -----------
Total operating
expenses 23,065 17,014 21,741 2,787 35.6
--------- ---------- --------- -----------
Operating profit 909 456 857 110 99.3
--------- ---------- --------- -----------
Non-operating
income /
(expenses):
Interest income 22 13 21 3 69.2
Interest
expense (691) (824) (651) (84) (16.1)
Share of
associates'
results 12 48 11 1 (75.0)
Share of
jointly
controlled
entities'
results (5) (39) (5) (1) (87.2)
Loss on
disposal of
property,
plant and
equipment (1) (22) (1) - (95.5)
Exchange loss,
net (59) (164) (56) (7) (64.0)
Other, net 46 21 44 6 119.0
--------- ---------- --------- -----------
Total net non-
operating
expenses (676) (967) (637) (82) (30.1)
--------- ---------- --------- -----------
Profit / (loss)
before taxation
and minority
interests 233 (511) 220 28 (145.6)
Income tax
(expense) /
credit (78) 324 (74) (9) (124.1)
--------- ---------- --------- -----------
Profit / (loss)
before minority
interests 155 (187) 146 19 (182.9)
Minority
interests (203) (171) (191) (25) 18.7
--------- ---------- --------- -----------
Loss attributable
to shareholders (48) (358) (45) (6) (86.6)
========= ========== ========= ===========
Basic losses per
share RMB(0.01) RMB(0.09) HK$(0.01) US$(0.001) (88.9)
========= ========== ========= ===========
China Southern Airlines Company Limited
Audited Financial Results
Difference between financial results prepared under IFRS and PRC GAAP
2004 2003
(RMB million) (RMB million)
Net profit under PRC GAAP 103 15
Adjustments:
Gains on aircraft sale and leaseback
transactions (31) (31)
Losses on staff housing allocation (111) (111)
Adjustment for revaluation of land use
rights 4 4
Adjustment for interest in associates (26) -
Capitalised interest 11 -
Effects of the above adjustments
on taxation 2 4
Effects of change in income tax rate
on deferred taxation - (122)
Adjustment for unrealised deferred tax
assets - (117)
------------- -------------
Net loss under IFRS (48) (358)
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