16:29     AIR CHINA<00753> - Results Announcement (4)                         

                                                                              
    Basis of calculation of EPS                                               
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    The calculation of basic earnings per share for the year ended 31 December
    2004 is based on the net profit attributable to equity holders of the     
    parent for the year ended 31 December 2004 of approximately RMB2,385,964, 
    000, and the weighted average of approximately 6,618,795,915 shares in    
    issue during the year on the assumption that the 6,500,000,000 shares     
    issued as at 30 September 2004 had been in issue throughout the year ended
    31 December 2004, and as adjusted to reflect the new issue of 2,550,618,  
    182 shares by way of placing and public offering in connection with the   
    public listing of the Company's H shares on 15 December 2004.             
                                                                              
    The calculation of basic earnings per share for the year ended 31 December
    2003 is based on the net profit attributable to equity holders of the     
    parent for the year ended 31 December 2003 of approximately RMB159,604,   
    000, and the number of shares in issue during 2003 on the assumption that 
    the 6,500,000,000 shares issued as at 30 September 2004 had been in issue 
    throughout the year ended 31 December 2003.                               
                                                                              
    The calculation of diluted earnings per share is based on the net profit  
    attributable to equity holders of the parent for the year ended 31        
    December 2004 of approximately RMB2,385,964,000. The weighted average     
    number of ordinary shares used in the calculation is the 6,618,795,915    
    shares in issue during the year, as used in the basic earnings per share  
    calculation and the weighted average of 556,132 ordinary shares assumed to
    have been issued at no consideration on the deemed exercise of all over-  
    allotment options granted to international underwriters to subscribe for  
    the H shares of the Company during the year.                              
                                                                              
    Diluted earnings per share for the year ended 31 December 2003 has not    
    been calculated because no diluting events existed during 2003.