China Eastern Airlines : 20170117-Overseas Regulatory Announcement – Announcement on the...

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(A joint stock limited company incorporated in the People's Republic of China with limited liability)

(Stock code: 00670) OVERSEAS REGULATORY ANNOUNCEMENT ANNOUNCEMENT ON THE PROVISION OF GUARANTEE FOR SOME SUBSIDIARIES

This announcement is made pursuant to Rule 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

The Company and all members of the Board warrant that the information set out in this announcement is true, accurate and complete and does not contain any false information, misleading statements or material omissions.

IMPORTANT NOTICE:

Name of guaranteed party	Amount of guarantee	Balance of guarantee actually provided	Availability of counter guarantee	Guarantor
China United Airlines Co., Ltd. ("China United Airlines")	The aggregate maximum limit being RMB1 billion	Guarantee not provided previously	No	China Eastern Airlines Corporation Limited (the "Company")
Shanghai Eastern Flight Training Co., Ltd. ("Shanghai Flight Training")		US$23,643,200
Eastern Business Airlines Service Co., Ltd. ("Eastern Business Airlines Service")		Guarantee not provided previously
China Eastern Airlines Technology Co., Ltd. ("Eastern Technology")		Guarantee not provided previously

• Aggregate amount of overdue external guarantee: nil

1. OVERVIEW OF THE GUARANTEE

   On 17 January 2017, the resolution regarding the provision by the Company of guarantee to some of its subsidiaries was considered and approved on the 2017 first regular meeting of the board of directors of the Company (the "Board"), pursuant to which it was agreed that the Company shall provide, within the period from the effective date of the resolution to 31 December 2017, guarantee in the total amount of up to RMB1 billion to four wholly-owned subsidiaries namely China United Airlines, Shanghai Flight Training, Eastern Business Airlines Service, Eastern Technology, or their respective wholly-owned subsidiaries; Where the subject obligations are denominated in foreign currencies, the amounts shall be translated to Renminbi at the exchange rates prevailing at the time of provision of the guarantee; The period of guarantee shall be the same as the period of subject obligations of the respective guaranteed parties and shall not exceed 10 years; The president of the Company shall be authorized to take charge of the detailed implementation thereof, and implementation progress shall be reported to the Board.

2. BASIC INFORMATION OF THE GUARANTEED PARTIES
3. China United Airlines Co., Ltd.

4. Registered address: Court 1, Western Zone, 6 Jingbei East Road, Fengtai District, Beijing;

5. Legal representative: Tang Bing;

6. Registered capital: RMB1,320 million;

7. Business scope: domestic (including Hong Kong, Macau and Taiwan) air passenger and cargo transportation business; international air passenger and cargo transportation business to the nearby countries (Air Operator's Certificate will be valid until 26 June 2017); agency services among airlines; the service business in relation to air transportation operations; retail of pre- packaged food (Food Circulation Permit will be valid until 21 January 2018); retail of souvenir and items for aviation services; to place both domestic and overseas advertisements on its own media and the agency of advertising business of its branches; ticketing services; warehousing services; corporate management consulting; investment management and asset management; design, production, agency advertising; sales of art pieces, cosmetics, hygiene products, clothing and footwear, cultural items, computers, software and auxiliary equipment, electronic products, household appliances, and jewelry; automobile rental (excluding passenger vehicles with more than 9 seats) (If any of the above business requires approval according to the law, the business shall only be conducted after obtaining such approval);

8. 100% equity interests in China United Airlines are held by the Company;

9. As of 31 December 2015, China United Airlines had total assets of RMB6,456,199,513.79, net assets of RMB1,960,304,486.26 and total liabilities of RMB4,495,895,027.53, including current liabilities of RMB2,730,814,930.46. In 2015, China United Airlines recorded revenue of RMB3,948,844,898.84 and net profit of RMB262,600,344.40. As of 30 September 2016, China United Airlines had total assets of RMB7,473,713,855.39, net assets of RMB2,419,551,604.38 and total liabilities of RMB5,054,162,251.01, including current liabilities of RMB3,108,586,761.38. For the period from January to September in 2016, China United Airlines recorded revenue of RMB3,323,169,802.54 and net profit of RMB464,309,993.66.

10. Shanghai Eastern Flight Training Co., Ltd.

11. Registered address: No. 518, Fasai Road, Free Trade Zone, Shanghai, the PRC;

12. Legal representative: Shi Fukang;

13. Registered capital: RMB693.80 million;

14. Business scope: provision of training for pilots and other flight-related crew, import and export of cargo and technology, leasing of self-owned properties as well as maintenance and research and development of aviation equipment, consultation of aviation industry knowhow (other than training), development and sales of computer software and conference services. (If any of the above business requires approval according to the law, the business shall only be conducted after obtaining such approval);

15. 100% equity interests in Shanghai Flight Training are held by the Company;

16. As of 31 December 2015, Shanghai Flight Training had total assets of RMB1,722,896,960.95, net assets of RMB1,007,225,112.01 and total liabilities of RMB715,671,848.94, including current liabilities of RMB463,710,630.98. In 2015, Shanghai Flight Training recorded revenue of RMB417,934,559.17 and net profit of RMB91,427,991.12. As of 30 September 2016, Shanghai Flight Training had total assets of RMB1,778,640,369.51, net assets of RMB1,116,491,766.35 and total liabilities of RMB662,148,603.16, including current liabilities of RMB427,537,299.65. For the period from January to September in 2016, Shanghai Flight Training recorded revenue of RMB369,975,828.46 and net profit of RMB109,266,654.34.

17. Eastern Business Airlines Service Co., Ltd.

18. Registered address: Room 716, Zone A, 7/F, No. 1023 Qinghu Road, Qingpu District, Shanghai;

19. Legal representative: Sun Youwen;

20. Registered capital: RMB50 million;

21. Business Scope: medical care and rescue, business flight, private or commercial pilot license training, aircraft hosting services, rental flight, general air chartered flight aircraft, maintenance and repair of aircraft and aviation equipment, air agency services, extended business related to air transport agency, travelling consultation (excluding travel agency services), conference and exhibition service, automobile leasing, sale of art pieces and gifts (If any of the above business requires approval according to the law, the business shall only be conducted after obtaining such approval);

22. 100% equity interests in Eastern Business Airlines Service are held by the Company;

23. As of 31 December 2015, Eastern Business Airlines Service had total assets of RMB113,710,147.27, net assets of RMB67,919,607.65 and total liabilities of RMB45,790,539.62, including current liabilities of RMB45,790,539.62. In 2015, Eastern Business Airlines Service recorded revenue of RMB253,387,488.93 and net profit of RMB13,690,310.32. As of 30 September 2016, Eastern Business Airlines Service had total assets of RMB127,403,116.00, net assets of RMB80,261,677.68 and total liabilities of RMB47,141,438.32, including current liabilities of RMB47,141,438.32. For the period from January to September in 2016, Eastern Business Airlines Service recorded revenue of RMB200,270,914.56 and net profit of RMB12,342,070.03.

24. China Eastern Airlines Technology Co., Ltd.

25. Registered address: No. 277, Kong Gang San Road, Hongqiao Airport, Changning District, Shanghai;

26. Legal representative: Feng Liang;

27. Registered capital: RMB4,300 million;