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 April, 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.
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(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. X
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(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 April 28, 2006
published in two local newspapers in Hong Kong an announcement in Chinese and
English, respectively, concerning the Company's first quarterly report of 2006.
A copy of the English announcement is included in this Form 6-K of the Company.
[CHINESE CHARACTERS]
[LOGO] CHINA SOUTHERN AIRLINES COMPANY LIMITED
(a joint stock limited company incorporated in
the People's Republic of China with limited liability)
(STOCK CODE: 1055)
FIRST QUARTERLY REPORT OF 2006
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SUMMARY
The unaudited financial statements of the Company for the First 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.
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1. IMPORTANT NOTICE
This announcement is made by China Southern Airlines Company Limited (the
"Company") pursuant to Rule 13.09 of the Rules Governing the Listing of
Securities on The Stock Exchange of Hong Kong Limited (the "Listing
Rules").
The directors (the "Directors") of the Company 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.
The first quarterly report of the Company for the year 2006 (the "First
Quarterly Report") was prepared in accordance with the relevant rules and
regulations of the China Securities Regulatory Commission.
In accordance with the provisions of Article 134 of the Articles of
Association of this Company, the board (the "Board") of Directors of the
Company has reviewed the First Quarterly Report of the Company by means of
correspondence and in the manner of signed approval. Ten persons should
have taken part in this review and eight actually took part in it. Mr. Sui
Gang Jun, an independent non-executive Director, was not able to take part
in this review and so authorized Mr. Wei Ming Hai, another independent
non-executive Director, to act as his proxy in this review. Mr. Zhou Yong
Qian, a Director, was not able to take part in this review as he has asked
for leave. After careful deliberations, the Board of Directors approved the
First Quarterly Report.
The manner and procedure for reviewing the First Quarterly Report are in
compliance with the provisions of the Company Law and the Articles of
Association of the Company.
The unaudited financial statements of the Company for the First Quarterly
Report were prepared in accordance with the accounting rules and
regulations of the People's Republic of China ("PRC GAAP").
The management and all the employees of the Company have been making great
efforts to achieve a good performance and a satisfactory return for the
Company in 2006. However, in addition to the uncertainty inherent in the
market competition, the operational costs of the Company have remained high
due to all-time high oil prices. Therefore, the Board of Directors expects
that the net profit of the Company that will be accumulated from the
beginning of this year to the end of the reporting period of the second
quarterly report for the year 2006 will turn out negative.
Mr. Liu Shao Yong (Chairman), Mr. Si Xian Min (Chief of Accounting Work,
President), Mr. Xu Jie Bo (Chief Financial Officer and Vice President) and
Mr. Xiao Li Xin (Chief of Accounting Department and General Manager of the
Financial Department) of the Company, warrant that the First Quarterly
Report is true and complete.
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2. BASIC PARTICULARS OF THE COMPANY
2.1 BASIC INFORMATION OF THE COMPANY
Stock Abbreviation (A Shares) China Southern
Stock Code 600029
Stock Abbreviation (H Shares) China Southern
Stock Code 1055
Stock Abbreviation (ADR) China Southern Air
Stock Code ZNH
Company Secretary Securities Respresentative
Name Su Liang Lei Bin
Correspondence No. 278 Ji Chang Road, Guangzhou,
Address Guangdong Province, People's Republic of China
Telephone: 020-86124738 020-86124736
Facsimile: 020-86659040 020-86659040
Email address: ir.cz@cs-air.com ir.cz@cs-air.com
2.2 FINANCIAL INFORMATION
2.2.1 Major Accounting Data and Financial Indices (Unaudited)
AS AT AS AT
31 MARCH 31 DECEMBER
2006 2005 CHANGE
(%)
Total assets (RMB'million) 73,554 72,304 1.71
Shareholders' equity
(excluding minority
interests) (RMB'million) 9,286 9,951 -6.7
Net assets per share (RMB) 2.12 2.28 -7.0
Adjusted net assets
per share (RMB) 2.03 2.19 -7.3
FOR THE
PERIOD FROM CHANGE COMPARED
1 JANUARY TO WITH THE PERIOD
31 MARCH FROM 1 JANUARY
2006 TO 31 MARCH 2005
(%)
Net cash inflow from
operating activities
(RMB'million) 522 -65.1
Earnings per share (RMB) -0.15 114.3
Return on net assets (%) -6.9 -4.4
Return on net assets after
extraordinary gains
and losses (%) -7.0 -4.5
EXTRAORDINARY GAINS AND LOSS AMOUNT
(RMB'million)
Net of other non-operating income and
expenses other than provision for
impairment 5
Gain on disposal of fixed assets 8
Total 13
2
2.2.2 Profit and Loss Account (Unaudited)
JANUARY -- MARCH 2006 JANUARY -- MARCH 2005
--------------------------------- --------------------------------
THE THE
CONSOLIDATED COMPANY CONSOLIDATED COMPANY
RMB million RMB million RMB million RMB million
REVENUE FROM PRINCIPAL OPERATIONS 9,429 7,332 8,266 6,398
Less: Operating costs of principal
operations 8,507 6,721 7,266 5,776
Business taxes and surcharges 262 196 232 178
PROFIT FROM PRINCIPAL OPERATIONS 660 415 768 444
Add: Profit from other operations 115 40 65 49
Less: Selling expenses 694 547 564 427
General and administration
expenses 478 348 363 251
Finance expenses 265 203 217 189
OPERATING (LOSS)/PROFIT (662) (643) (311) (374)
Add: Investment (loss)/income (11) (30) (3) 29
Subsidy income -- -- -- --
Non-operating income 18 8 8 5
Less: Non-operating expenses 5 -- 2 1
(LOSS)/PROFIT BEFORE INOME TAX (660) (665) (308) (341)
Less: Income tax 7 -- (45) (56)
Less: Minority interest (2) -- 22 --
Add: Un-recognized investment
loss (consolidated) -- -- -- --
NET (LOSS)/PROFIT (665) (665) (285) (285)
2.3 As at the end of the reporting period, the Company had a total number of
131,004 shareholders. Shareholdings of the Ten Largest Shareholders
(Before Completion of Equity Division Reform)
NUMBER OF
SHARES HELD AS AT
31 MARCH TYPE OF
NAME OF SHAREHOLDERS 2006 SHAREHOLDER
HKSCC Nominees Limited 1,150,876,998 H shares
Boshi Value Growth Securities
Investment Fund 27,952,865 A shares
National Social Securities Fund
102 Group 22,427,704 A shares
National Social Securities Fund
108 Group 22,030,386 A shares
The Industrial and Commerce
Bank of China -- Shanghai
Stock Exchange 50 Openly
Trading Index Fund 15,584,746 A shares
Hong Wen Hui 14,399,720 A shares
Bank of China -- Tong Sheng
Securities Investment Fund 13,491,337 A shares
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Bank of Communication Kong Tong
Industry Prosperous Securities
Invest Fund 11,000,000 A shares
International Finance -- Standard
Chartered -- CITI Group
GLOBAL MARKETS LIMITED 10,407,743 A shares
Bank of China -- Jia Shi Service
Value Added Industries
Securities Investment Fund 10,079,302 A shares
3. MANAGEMENT DISCUSSION AND ANALYSIS
3.1 BRIEF ANALYSIS OF THE COMPANY'S OVERALL OPERATIONAL ACTIVITIES DURING THE
REPORTING PERIOD
The total traffic volume of the Company and its subsidiaries (the "Group")
was 1,778.66 million tonne-kilometers, representing a growth of 13.5% over
the same period of last year; passengers carried were 10.75 million,
representing an increase of 13.6% from the same period last year; cargo
and mail traffic amounted to 180,000 tonne, representing an increase of
13.5% from the same period last year; passenger load factor was 70.4%,
representing an increase of 5.1% from the same period last year.
Meanwhile, the revenues and profits from our principal operations were
RMB9,429 million which is an increase of 14% from the same period last
year, and RMB660 million which is a decrease of 14% from the same period
last year respectively. The decrease in profits from principal operations
was mainly due to the effect of a 15% increase of jet fuel costs as
compared to the same period last year, which had already largely increased
during last year. As a result, the net loss for the first quarter of this
year was RMB665 million.
3.1.1 Principal operations or products representing more than 10% of the income
or profit from the Company's principal operations
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GROSS PROFIT
PRINCIPLE OPERATION INCOME COSTS MARGIN
(BY BUSINESS OR PRODUCT) (RMB'million) (RMB'million) (%)
Income from passenger transportation 8,571
Income from cargo and mail
transportation 788 8,507 7.0
Others 70
Total 9,429
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By order of the Board
CHINA SOUTHERN AIRLINE COMPANY LIMITED
LIU SHAO YONG
Chairman of the Board of Directors
Guangzhou, the People's Republic of China
April 27, 2006
As at the date of this announcement, the Directors of the Company include Liu
Shao Yong, Wang Quan Hua, Zhao Liu An, Zhou Yong Qian, 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.
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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/ Su Liang
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Name: Su Liang
Title: Company Secretary
Date: May 25, 2006