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
For
the
month of October, 2006
CHINA
SOUTHERN AIRLINES COMPANY LIMITED
(Translation
of registrant's name into English)
Jichang
Road
Guangzhou,
Guangdong 510405
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. x Form
40-F. o
(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
.
o
No.
x
(If "Yes" is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2(b): 82-________.)
China
Southern Airlines Company Limited (the "Company") on October 27, 2006 published
in two local newspapers in Hong Kong an announcement in Chinese and English,
respectively, in relation to the Third Quarterly Report of the Company. A copy
of the English announcement is included in this Form 6-K of the
Company.
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 | ||
| |
|
|
| Date: November 1, 2006 | By: | /s/ Su Liang |
|
Name: Su Liang |
||
| Title: Company Secretary | ||
(a
joint stock limited company incorporated in the People’s Republic of China with
limited liability)
(Stock
Code: 1055)
THIRD
QUARTERLY REPORT OF 2006
|
SUMMARY
|
|
The
unaudited financial statements of the Company for the Third Quarterly
Report were prepared in accordance with the PRC GAAP.
|
|
This
announcement is made by the Company pursuant to Rule 13.09 of the
Listing
Rules.
|
1 IMPORTANT
NOTICE
| 1.1 | The directors of the Company (the “Directors”) collectively and individually warrant that the information set out in this report does not contain any misrepresentation, misleading statement or material omission; and jointly and severally accept full responsibility as to the truthfulness, accuracy and completeness of the content herein. |
| 1.2 | Mr. Si Xian Min, who did not attend the board meeting because of business travel, appointed Mr. Xu Jie Bo to attend the board meeting on his behalf. |
| 1.3 | The financial statements of the Company for the Third Quarterly Report were unaudited. |
| 1.4 | Mr. Liu Shao Yong (Chairman), Mr. Si Xian Min (Chief of Accounting Work, President), Mr. Xu Jie Bo (Chief Financial Officer) and Mr. Xiao Li Xin (Chief of Accounting Department and General Manager of the Financial Department) of the Company, warrant that the Third Quarterly Report is true and complete. |
2 BASIC
PARTICULARS OF THE COMPANY
2.1 Basic
Information of the Company
|
Stock
abbreviation:
|
China
South Air
|
|
Stock
code:
|
600029
(A share), 1055 (H share), ZNH
(ADS)
|
|
Company
Secretary
|
Securities
Representative
|
|
|
Name:
|
Su
Liang
|
Lei
Bin
|
|
Correspondence
|
No.
278 Ji Chang Road,
|
No.
278 Ji Chang Road,
|
|
Address:
|
Guangzhou
|
Guangzhou
|
|
Telephone:
|
020-86124737,
86124462
|
020-86124737,
86124462
|
|
Facsimile:
|
020-86659040
|
020-86659040
|
|
E-mail
address:
|
webmaster@cs-air.com
|
webmaster@cs-air.com
|
2.2
Financial Information
2.2.1
Major Accounting Data and Financial Indices (Unaudited)
|
As
at
30
September
2006
|
As
at
31
December
2005
|
30
September
2006
compared
to
31
December
2005
Change
|
|
|
(%)
|
|||
|
Total
assets (RMB’
million)
|
78,648
|
72,304
|
8.77
|
|
Shareholders’
equity
(excluding
minority interests)
(RMB’
million)
|
10,406
|
9,951
|
4.57
|
|
Net
assets per share (RMB)
|
2.38
|
2.28
|
4.39
|
|
Adjusted
net assets per
share
(RMB)
|
2.29
|
2.19
|
4.57
|
|
For
the
period
from
1
July 2006 to
30
September
2006
|
For
the
period
from
1
January 2006 to
30
September
2006
|
Period
from
1
July 2006 to
30
September
2006
compared
to
same
period
of
2005
Change
|
||
|
(%)
|
||||
|
Net
cash inflow from
operating
activities
(RMB’
million)
|
2,453
|
3,963
|
371.73
|
|
|
Earnings
per share (RMB)
|
0.29
|
0.10
|
52.63
|
|
|
Return
on net assets (%)
|
13.19
|
4.45
|
Increase
of
5.89
percentage
points
|
|
|
Return
on net assets after
extraordinary
gains and
losses
(%)
|
13.07
|
3.03
|
Increase
of
5.81
percentage
points
|
|
|
Extraordinary
gains/losses
|
Amount
|
|||
|
(RMB’
million)
|
||||
|
Subsidy
income
|
103
|
|||
|
Expired
sales in advance of carriage
|
33
|
|||
|
Others
|
35
|
|||
|
Effect
of the above on taxation
|
(26)
|
|||
|
Total
|
145
|
|||
|
2.2.2
|
Unaudited
Profit and Loss Account
|
|
Consolidated
|
The
Company
|
||||||
|
For
the period
from
1
July 2006 to
30
September 2006
|
For
the period
from
1
July 2005 to
30
September 2005
|
For
the period
from
1
July 2006 to
30
September 2006
|
For
the period
from
1
July 2005 to
30
September 2005
|
||||
|
Items
|
|||||||
|
(RMB’
million)
|
(RMB’
million)
|
(RMB’
million)
|
(RMB’
million)
|
||||
|
Revenue
from principal operations
|
13,891
|
11,401
|
11,414
|
9,141
|
|||
|
Less:
|
Costs
of principal operations
|
10,979
|
9,273
|
9,034
|
7,540
|
||
|
Business
taxes and surcharges
|
364
|
328
|
285
|
252
|
|||
|
|
|
|
|
||||
|
Profit
from principal operations
|
2,548
|
1,800
|
2,095
|
1,349
|
|||
|
Add:
|
Profit
from other operations
|
46
|
45
|
47
|
26
|
||
|
Less:
|
Selling
expenses
|
735
|
814
|
607
|
647
|
||
|
General
and administrative
|
|||||||
|
expenses
|
476
|
460
|
397
|
317
|
|||
|
Financial
expenses/(income)
|
30
|
(437)
|
(5)
|
(443)
|
|||
|
|
|
|
|
||||
|
Operating
profit
|
1,353
|
1,008
|
1,143
|
854
|
|
|
Add:
|
Investment
income
|
10
|
102
|
120
|
98
|
|
Subsidy
income
|
32
|
–
|
25
|
–
|
|
|
Non-operating
income
|
8
|
8
|
7
|
6
|
|
|
Less:
|
Non-operating
expenses
|
25
|
5
|
7
|
5
|
|
|
|
|
|
||
|
Profit
before income tax
|
1,378
|
1,113
|
1,288
|
953
|
|
|
Less:
|
Income
tax
|
28
|
119
|
–
|
101
|
|
Minority
interests
|
62
|
142
|
–
|
–
|
|
|
Net
Profit
|
1,288
|
852
|
1,288
|
852
|
|
|
|
|
|
|
||
|
Consolidated
|
The
Company
|
|||||||
|
For
the period
from
1
January 2006 to
30
September 2006
|
For
the period
from
1
January 2005 to
30
September 2005
|
For
the period
from
1
January 2006 to
30
September 2006
|
For
the period
from
1
January 2005 to
30
September 2005
|
|||||
|
Items
|
||||||||
|
(RMB’
million)
|
(RMB’
million)
|
(RMB’
million)
|
(RMB’
million)
|
|||||
|
Revenue
from principal operations
|
34,915
|
29,454
|
27,822
|
23,247
|
||||
|
Less:
Costs
of principal operations
|
29,234
|
25,197
|
23,655
|
20,179
|
||||
|
Business
taxes and surcharges
|
916
|
846
|
699
|
640
|
||||
|
|
|
|
|
|||||
|
Profit
from principal operations
|
4,765
|
3,411
|
3,468
|
2,428
|
||||
|
Add:
Profit
from other operations
|
158
|
285
|
146
|
179
|
||||
|
Less:
Selling
expenses
|
2,230
|
2,104
|
1,774
|
1,655
|
||||
|
General
and administrative
|
||||||||
|
expenses
|
1,457
|
1,322
|
1,105
|
907
|
||||
|
Financial
expenses
|
780
|
146
|
644
|
56
|
||||
|
|
|
|
|
|||||
|
Operating
profit/(loss)
|
456
|
124
|
91
|
(11)
|
||||
|
Add:
Investment
income
|
5
|
92
|
201
|
93
|
||||
|
Subsidy
income
|
103
|
–
|
81
|
–
|
||||
|
Non-operating
income
|
101
|
31
|
87
|
22
|
||||
|
Less:
Non-operating
expenses
|
33
|
62
|
13
|
50
|
||||
|
|
|
|
|
|||||
|
Profit
before income tax
|
632
|
185
|
447
|
54
|
||||
|
Less:
Income
tax expense/(benefit)
|
55
|
62
|
(6)
|
45
|
||||
|
Minority
interests
|
124
|
114
|
–
|
–
|
||||
|
|
|
|
|
|||||
|
Net
Profit
|
453
|
9
|
453
|
9
|
||||
|
|
|
|
|
|||||
|
2.3
|
As
at the end of the reporting period, the total number of shareholders
and
the shareholdings of ten largest listed shareholders of listed shares
of
the Company were as
follows:
|
|
Shareholdings
of the ten largest listed shareholders
|
||
|
Name
of Shareholders
(full
name)
|
Shareholdings
as at
30
September 2006
|
Nature
of
shares
held
|
|
HKSCC
|
1,149,157,998
|
H
Shares
|
|
The
Industrial and Commence
|
||
|
Bank
of China –
Yi Fang Da
Selected
|
||
|
Stock-Type
Securities Investment Fund
|
26,215,567
|
A
Shares
|
|
Boshi
Value Increase Securities Investment Fund
|
22,000,000
|
A
Shares
|
|
National
Social Security Fund 108 Portfolio
|
20,030,386
|
A
Shares
|
|
National
Social Security Fund 102 Portfolio
|
19,427,704
|
A
Shares
|
|
Hai
Tong –
Bank of
Communications
|
||
|
– Nikko
Asset Management Co., Ltd
|
||
|
– Nikko
AM China A Share Umbrella Fund
|
11,999,959
|
A
Shares
|
|
China
Construction Bank –
Boshi
Value
|
||
|
Increase
Securities Investment Fund II
|
11,681,782
|
A
Shares
|
|
Yu
Yang Securities Investment Fund
|
10,126,500
|
A
Shares
|
|
The
Industrial and Commence Bank of China
|
||
|
– Shangzheng
50 Exchange Traded
|
||
|
(Securities
Investment) Fund
|
9,374,446
|
A
Shares
|
|
Bank
of Agriculture –
Great Wall
An Xi
|
||
|
Return
Hybrid Securities Investment Fund
|
9,252,272
|
A
Shares
|
|
3
|
MANAGEMENT
DISCUSSION AND ANALYSIS
|
|
3.1
|
Brief
analysis of the Company’s overall operational activities during the
reporting period
|
As
a
result of the continuous and stable economic growth in China, all operational
indices of the Company were remarkably increased. Moreover, the Company was
benefited from the Renminbi appreciation against foreign currencies including
US
dollars. Despite the substantial increase of the operation cost caused by the
continuous hiking jet fuel price and its likely upward trend, the Company
achieved a great performance in its operation. During the period, the Company’s
traffic volume was 2,292,420,000 tonne-kilometers, representing a growth of
11.4% over the same period of last year; passengers carried were 14,260,000,
representing an increase of 12.4% from the same period last year; cargo and
mail
traffic amounted to 223,000 tonne, representing an increase of 4.1% from the
same period last year. Revenue from principal operations for the third quarter
was RMB13,891,000,000 yuan, an increase of 21.8% from the same period last
year,
profit from the principal operations was RMB2,548,000,000 yuan, an increase
of
41.6% from the same period last year, and the net profit was increased to
RMB1,288,000,000 yuan compared with RMB852,000,000 yuan of the same period
last
year, representing an increase of 51% . From the first quarter to the third
quarter of this year, the Company’s total traffic volume was 6,000,160,000
tonne-kilometers, representing an increase of 11.0% from the same period last
year; passengers carried were 36,949,000, an increase of 12.0% from the same
period last year; cargo and mail traffic amounted to 599,000 tonne, an increase
of 6.5% from the same period last year; and the passenger load factor was 72.3%,
an increase of 2.9% from the same period last year. The accumulated revenue
from
principal operations was RMB34,915,000,000 yuan, an increase of 18.5% from
the
same period last year, profit from principal operations was RMB4,765,000,000
yuan, an increase of 39.7% from the same period last year, and net profit was
RMB453,000,000 yuan, while the accumulated net profit in the same period of
last
year was RMB9,000,000 yuan.
|
3.1.1
|
Principal
operations or products representing more than 10% of the income or
profit
from the Company’s principal
operations
|
Unit:
RMB’ million
|
Revenues
from
principal
operations
|
|||
|
Costs
of principal
operations
|
Gross
profit
margin
|
||
|
(%)
|
|||
|
Passengers
|
32,017
|
29,234
|
13.65
|
|
Cargo
|
2,672
|
||
|
Others
|
226
|
||
|
3.1.2
|
Related
party transactions in respect of daily operations of the Company:
significant related party transactions (based on the relevant rules
and
regulations of the Shanghai Stock Exchange) in respect of purchase
of
merchandise and service
|
|
Nature
of
|
%
of same type
|
||
|
Name
|
transaction
|
Amount
|
of
transaction
|
|
(RMB’ million)
|
|||
|
Guangzhou
Aircraft
Maintenance
Engineering
Company
Limited
|
Aircraft
and engine
repair
and
maintenance
|
241
|
7.3
|
|
MTU
Maintenance
Zhuhai
Co., Ltd.
|
Aircraft
and engine
repair
and
maintenance
|
193
|
5.8
|
|
Southern
Airlines (Group)
Air
Catering Co., Ltd.
|
Air
catering
|
90
|
10.5
|
Guangzhou
Aircraft Maintenance Engineering Company Limited, a jointly controlled entity
of
the Company, provides aircraft and engine repair and maintenance service to
the
Company.
MTU
Maintenance Zhuhai Co., Ltd., a jointly controlled entity of the Company,
provides aircraft and engine repair and maintenance service to the
Company.
Southern
Airlines (Group) Air Catering Co., Ltd., a subsidiary of the controlling
shareholder, provides air catering service to the Company.
By
Order
of the Board of
China
Southern Airlines Company Limited
Liu
Shao Yong
Chairman
Guangzhou,
the People’s Republic of China
26
October 2006
As
at
the date of this notice, the Directors of the Company include Liu Shao Yong,
Tan
Wan Geng, Chen Zhen You, Wang Quan Hua, Zhao Liu An, Xu Jie Bo and Si Xian
Min
as executive Directors; and Peter Lok, Wei Ming Hai, Wang Zhi and Sui Guang
Jun
as independent non-executive Directors.