Land Lease Agreement


 


Date: 9 January 2014


 


In accordance with the legal and regulatory requirements under
the "Law of Land Administration of the People’s Republic of China”, this contract regarding land leasing was entered
between China Southern Air Holding Company and China Southern Airlines Company Limited on the basis of equality, voluntariness
and consideration through friendly negotiation.


 


Chapter 1 General Provisions


 


Article 1 Parties of this contract:


 


Lessor: China Southern Air Holding Company
(CSAHC) (hereafter named “Party A”)


Legal address: Guangzhou Baiyun International
Airport


Postal code: 510406


Lessee: China Southern Airlines Company
Limited (hereafter named “Party B”)


Legal address: Guangzhou Economic and
Technological Development Zone


Postal code: 510406


 


Article 2 Party A leases the land use right to Party B pursuant
hereto. The ownership of the land covered shall be People’s Republic of China, and the land use rights thereof belong to
Party A. Any underground resources, buried property and public utilities shall not be covered under the land use right granted
hereunder.


 


Article 3 The legal rights of the use of land within the land
use rights leased by Party B pursuant hereto and operating activities thereof are protected by the law of the State.


 


Chapter 2 Size, Term and Usage of the
Leased Land


 


Article 4 Party A leases the land use right to Party B (see
Appendix I for detailed description of the land). Transaction price was determined on a fair and reasonable basis and based on
fair market rate, and will be no higher than the price and charging standard offered by other independent third parties.


 


Article 5 The land leased pursuant hereto shall be used for
air transportation and auxiliary service facilities and welfare benefits. Any changes to the land usage as stipulated herein within
the lease term shall be subject to approval of Party A.


 


Article 6 The term of the land use rights leased hereunder shall
be 3 years effective from 1 January 2014.


 


Chapter 3 Rental Payments


 


Article 7 Party B agrees to pay Party A an annual rental of
RMB 63,582,200 each year. Rental payment, provided by Party B to Party A on a quarterly basis, shall be settled within 15 days
from the start date of the first month of each quarter by bank remittance. Within 5 days upon receipt of payment, Party A shall
issue a receipt of the respective amount.


 


Article 8 Party B shall remit the rental payment to the bank
account of Party A on or before the respective required payment date. Should there be any changes to the bank account, Party A
shall notify Party B in written form within 10 days after such changes. Party B shall not be liable for any delay in payment(s)
arising from late payment(s) due to failure to give timely notice.


 




    	 



    	 



    

 


Article 9 Should there be any laws, regulations or administrative
orders requiring to contribute, fully or partially, the rental payments received by Party A from Party B, Party A shall be liable
to comply such laws, regulations or administrative orders. In the event of any loss(es) in Party B arising from violation of Party
A of the forementioned requirements, Party A shall fully compensate Party B on such loss(es).


 


Chapter 4 Agreed Terms


 


Article 10 So far as Party A is entitled
to the land use rights of the land and there is no breaches by Party B on the obligations hereunder, Party A shall be obligated
to lease such land use rights to Party B and shall not retrieve or reject to enter into the Land Lease Agreement for any reasons.


 


Article 11 Party A agrees that land leased by Party B can be
used by Party B and its wholly-owned subsidiaries and investment companies within the scope of usage as stipulated by this contract.


 


Article 12 Given the historical reason for the land, should
Party A be unable to continue fulfilling its obligation hereunder due to special causes such as government orders or urban planning,
Party A may elect an early termination or amendment of this contract to fully or partially resume the land leased hereunder, subject
to an obligation of Party A to compensate Party B on the properties on the resumed land and the direct financial loss(es) of Party
B arising from redemption of the land on termination of this contract according to relevant requirements of the Government.


 


Article 13 Any change of the lease type stipulated herein to
transference by Party B during the lease term shall be subject to prior approval of Party A and in such case, procedures and amendments
in the land use rights registration shall be approved in accordance to relevant regulations. In the event of unilateral termination
or amendments on this contract by Party B, Party B shall be liable to compensate the direct financial loss(es) of Party A.


 


Article 14 Party B guarantees to Party A on usage of land strictly
in accordance to relevant laws and regulations of the Government. Land leased by Party B shall not be transferred, subleased or
pledged without approval of Party A. In the event of any loss(es) of Party A arising from the misuse of land of Party B, Party
B shall provide compensation.


 


Article 15 Party B accepts the commission by Party A, according
to the relevant provisions of the local tax authorities to declare and pay property taxes and tenure taxes. The tax payment is
borne by Party A. The property taxes are settled on quarterly basis and tenure taxes are settled on yearly basis. Party A shall
refund to Party B within 15 working days upon receipt of the duty-paid original certificate and tax return statement of assets
provided by Party B.


 


Chapter 5 Usage of Land


 


Article 16 Land hereunder, upon leasing, shall be used by Party
B on purposes related to air transportation business and other auxiliaries in accordance to the land use specified by the State.


 


Article 17 Any addition of general housings or buildings by
Party B on the leased land shall be subject to requirements of urban planning and general planning of land use and the prior approval
in written form from Party A. Approval procedures with authorities shall be gone through by Party B with necessary assistance from
Party A. Party A confirms that the ownership of the buildings added on the leased land shall belong to Party B, and, upon expiration
and where Party B determined not to extend this contract, belong to Party A albeit appropriate compensation with specific amount
to be negotiated otherwise between both parties shall be made from Party A to Party B.


 




    	 



    	 



    

 


Article 18 Any change(s) by Party B on the usage of the leased
land shall be subject to requirements of urban planning and general planning of land use and the Land Lease Agreement has to be
signed again according to the changed land usage upon the approval from Party A.


 


Chapter 6 Expiration


 


Article 19 Should a party require to continue the use of the
land after expiration of this contract, the party shall submit extension application to Party A 60 days prior to the expiration
date and enter into a renewed contract with Party A.


 


Chapter 7 Force Majeure


 


Article 20 None of the parties shall be legally liable to the
failure to perform obligations hereunder, whether partially or fully, due to force majeure. Notwithstanding the above, both parties
shall perform all necessary remediation measures to reduce the loss arising from force majeure. The party affected by force majeure
shall report the situation to the other party within 15 days after such event and provide proof of such force majeure event to
the relevant government authority.


 


Chapter 8 Breach of Contract


 


Article 21 Failure to perform the requirements hereunder shall
be regarded as a breach of the contract. The breaching party shall be liable for compensation on the direct financial loss(es)
of the other party.


 


Article 22 In the event of failure of Party B to provide timely
rental payment, the party shall pay an overdue fine, initially equivalent to 0.04% of the amount of the land rental payment, until
the party completely settled the payment of such installment.


 


Chapter 9 Applicable Legal and Dispute
Resolutions


 


Article 23 Resolutions on the entering, effect, explanation,
performance and dispute hereof shall be protected and governed by the law of the People’s Republic of China.


 


Article 24 Any dispute arising from this contract shall be resolved
by negotiation of the disputing parties. Either party shall have the right to prosecute a lawsuit in the people’s court upon
failure of resolving by negotiation.


 


Chapter 10 Supplementary Provisions


 


Article 25 This contract shall not be transferred. Notwithstanding,
in case of restructuring, merger and division of either party, this contract shall continue to be performed by the new organization(s)
entitled to the rights hereunder after the restructuring, merger and division upon issuance of written notice to the other party
and entering of contractual agreements.


 


Article 26 This agreement shall be made out in quadruplicate
with each party holding two copies of each. The contract shall take effect upon signature and seal.


 


Article 27 For issues not stipulated in this contract, it may
be included as the annex of this contract upon the negotiation of both parties. The annex of this contract and this contract are
equally valid.





 




    	 



    	 



    

 


	Party A:	Party B:
	China Southern Air Holding Company	China Southern Airlines Company Limited
	Authorized representative:	Authorized representative:





 




    	 



    	 



    

 


	List of assets	 	 	 	 	Unit: RMB0’000	 
	Type of assets :	 	Shares leased assets	 	 	Airline catering services leased assets	 
	Total land rent:	 	 	6042.5664	 	 	 	315.6534	 
	Total property rent:	 	 	3327.7024	 	 	 	338.7242	 
	Total building rent:	 	 	156.4078	 	 	 	0.3465	 
	Total pipelines and trenches rent:	 	 	188.2898	 	 	 	0	 
	Total rent sub-total	 	 	9714.9664	 	 	 	654.7241	 
	Total rent(gross) :	 	 	 	 	 	 	10369.6905	 



 




    	 



    	 



    

 


	Breakdown of Real estate lease rental project of China Southern Group : Shares leased land	Exhibit 1


 


Breakdown of Real estate lease rental project of China Southern
Group : Shares leased assets


 


	No	 	Asset no.	 	Parcel name	 	Land users
 at
 valuation
 date	 	Land use rights
 certificate number	 	Location of parcel	 	Registration
 purpose at
 valuation
 reference date	 	Actual
 development
 progress at
 valuation
 reference date	 	Remaining
 useful life
 of the land	 	 	Land area
 (m2)	 	 	Total net income
 (RMB0’000/year)	 	 	Land use tax
 unit price
 (RMB0’000/
 year)	 	 	Land use tax
 (RMB0’000/year)	 	 	Business
 tax rate	 	 	Management
 Fee Rate	 	 	Land
 reference
 annul lease
 rent
 (RMB0’000/
 year)	 
	1	 	DXJ004	 	Airport Service Area	 	China Southern Airlines Company Limited	 	Niaoguoyobg (2004) No 0008712	 	No. 46 Yingbin Road, Xinshi District	 	Transportation	 	Outside parcel red line “Liu Tong” and area inside red line “smooth”	 	 	39.26	 	 	 	72534.82	 	 	 	255.5914	 	 	 	1.5	 	 	 	0.0059	 	 	 	5.5	%	 	 	2.5	%	 	 	277.8232	 
	2	 	DXJ006	 	Ground Service Company 1 (Special Garage)	 	China Southern Airlines Company Limited	 	Niaoguoyobg (2004) No 0008714	 	No. 46 Yingbin Road, Xinshi District	 	Transportation	 	Outside parcel red line “Liu Tong” and area inside red line “smooth”	 	 	39.26	 	 	 	39515.44	 	 	 	139.241	 	 	 	1.5	 	 	 	0.0059	 	 	 	5.5	%	 	 	2.5	%	 	 	151.3553	 
	3	 	DXJ007	 	Ground Service Company 2 (Ferry Garage)	 	China Southern Airlines Company Limited	 	Niaoguoyobg (2004) No 0008715	 	No. 46 Yingbin Road, Xinshi District	 	Transportation	 	Outside parcel red line “Liu Tong” and area inside red line “smooth”	 	 	39.26	 	 	 	2863.99	 	 	 	10.0918	 	 	 	1.5	 	 	 	0.0059	 	 	 	5.5	%	 	 	2.5	%	 	 	10.9758	 



 






    	 



    	 



    

 


	4	 	DXJ013	 	Cargo Warehouse	 	China Southern Airlines Company Limited	 	Niaoguoyobg (2004) No 0008715	 	No. 46 Yingbin Road, Xinshi District	 	Transportation	 	Outside parcel red line “Liu Tong” and area inside red line “smooth”	 	 	39.26	 	 	 	33792.16	 	 	 	119.0735	 	 	 	1.5	 	 	 	0.0059	 	 	 	5.5	%	 	 	2.5	%	 	 	129.4341	 
	5	 	DXJ008	 	Airport Materiel Area	 	China Southern Airlines Company Limited	 	Niaoguoyobg (2004) No 0008716	 	No. 46 Yingbin Road, Xinshi District	 	Transportation	 	Outside parcel red line “Liu Tong” and area inside red line “smooth”	 	 	39.26	 	 	 	34757.01	 	 	 	122.4736	 	 	 	1.5	 	 	 	0.0059	 	 	 	5.5	%	 	 	2.5	%	 	 	133.1299	 
	6	 	DXJ001	 	Cultural Centre	 	China Southern Airlines Company Limited	 	Niaoguoyobg (2004) No 0008709	 	No. 46 Yingbin Road, Xinshi District	 	Transportation	 	Outside parcel red line “Liu Tong” and area inside red line “smooth”	 	 	39.26	 	 	 	20599.43	 	 	 	72.4454	 	 	 	1.5	 	 	 	0.0059	 	 	 	5.5	%	 	 	2.5	%	 	 	78.7514	 
	7	 	DXJ009	 	Expert Building	 	China Southern Airlines Company Limited	 	Niaoguoyobg (2004) No 0008717	 	No. 46 Yingbin Road, Xinshi District	 	Transportation	 	Outside parcel red line “Liu Tong” and area inside red line “smooth”	 	 	39.26	 	 	 	1575.94	 	 	 	5.553	 	 	 	1.5	 	 	 	0.0059	 	 	 	5.5	%	 	 	2.5	%	 	 	6.0423	 
	8	 	DXJ010	 	Cabin	 	China Southern Airlines Company Limited	 	Niaoguoyobg (2004) No 0008753	 	No. 46 Yingbin Road, Xinshi District	 	Transportation	 	Outside parcel red line “Liu Tong” and area inside red line “smooth”	 	 	39.26	 	 	 	6981.95	 	 	 	24.602	 	 	 	1.5	 	 	 	0.0059	 	 	 	5.5	%	 	 	2.5	%	 	 	26.7477	 



 






    	 



    	 



    

 


	9	 	DXJ003	 	Flight Division 1	 	China Southern Airlines Company Limited	 	Niaoguoyobg (2004) No 0008711	 	No. 46 Yingbin Road, Xinshi District	 	Transportation	 	Outside parcel red line “Liu Tong” and area inside red line “smooth”	 	 	39.26	 	 	 	32989.14	 	 	 	116.2436	 	 	 	1.5	 	 	 	0.0059	 	 	 	5.5	%	 	 	2.5	%	 	 	126.3582	 
	10	 	DXJ002	 	Flight Division 2	 	China Southern Airlines Company Limited	 	Niaoguoyobg (2004) No 0008710	 	No. 46 Yingbin Road, Xinshi District	 	Transportation	 	Outside parcel red line “Liu Tong” and area inside red line “smooth”	 	 	39.26	 	 	 	9969.82	 	 	 	35.1311	 	 	 	1.5	 	 	 	0.0059	 	 	 	5.5	%	 	 	2.5	%	 	 	38.1924	 
	11	 	DXJ012	 	Training Centre	 	China Southern Airlines Company Limited	 	Niaoguoyobg (2004) No 0008728	 	No. 46 
Yingbin Road, Xinshi District	 	Transportation	 	Outside parcel red line “Liu Tong” and area inside red line “smooth”	 	 	39.26	 	 	 	71748.97	 	 	 	252.822	 	 	 	1.5	 	 	 	0.0059	 	 	 	5.5	%	 	 	2.5	%	 	 	274.8129	 
	12	 	DXJ005	 	New Terminal	 	China Southern Airlines Company Limited	 	Niaoguoyobg (2004) No 0008713	 	No. 46 Yingbin Road, Xinshi District	 	Transportation	 	Outside parcel red line “Liu Tong” and area inside red line “smooth”	 	 	39.26	 	 	 	215715.2	 	 	 	760.117	 	 	 	1.5	 	 	 	0.0059	 	 	 	5.5	%	 	 	2.5	%	 	 	826.2205	 
	Xinjiang sub-total	 	 	 	 	 	 	 	 	 	 	 	 	 	 	543003.8700	 	 	 	1913.3854	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	2079.8437	 
	13	 	DHEB008	 	Integrated office area	 	China Southern Airlines Company Limited	 	Hagoyong (2007) No 37764	 	No. 34 Ganshui Road, Xiangfang District, Harbin	 	Office	 	Outside parcel red line “Liu Tong” and area inside red line “smooth”	 	 	29.48	 	 	 	1854.95	 	 	 	52.1377	 	 	 	18.0000	 	 	 	0.0531	 	 	 	5.5	%	 	 	2.5	%	 	 	56.7291	 



 






    	 



    	 



    

 


	14	 	DHEB007	 	Training Centre	 	China Southern Airlines Company Limited	 	Hagoyong (2004) 
No 16103	 	No. 89 Changjiang Road, Nangang, Harbin	 	Education	 	Outside parcel red line “Liu Tong” and area inside red line “smooth”	 	 	50	 	 	 	360.6	 	 	 	10.1337	 	 	 	14.0000	 	 	 	0.0700	 	 	 	5.5	%	 	 	2.5	%	 	 	11.0910	 
	15	 	DHEB005	 	Flight Building Office	 	China Southern Airlines Company Limited	 	Hagoyong (2004) No 16342	 	Yiqing Street, Nangang District, Harbin	 	Land for 
agencies and organizations	 	Outside parcel red line “Liu Tong” and area inside red line “smooth”	 	 	50	 	 	 	1584.3	 	 	 	44.5237	 	 	 	14.0000	 	 	 	0.0700	 	 	 	5.5	%	 	 	2.5	%	 	 	48.4714	 
	16	 	DHEB006	 	Cabin Office	 	China Southern Airlines Company Limited	 	Hagoyong (2004) No 16346	 	Heping Road, Nangang District, Harbin	 	Land for 
agencies and organizations	 	Outside parcel red line “Liu Tong” and area inside red line “smooth”	 	 	50	 	 	 	1882.8	 	 	 	52.6514	 	 	 	18.0000	 	 	 	0.0900	 	 	 	5.5	%	 	 	2.5	%	 	 	57.3276	 
	17	 	DHEB004	 	Airport Maintenance 1	 	China Southern Airlines Company Limited	 	Hagoyong (2004) No 16344	 	Baijiagang Airport, Daoli District	 	Civil Airport	 	Outside parcel red line “Liu Tong” and area inside red line “smooth”	 	 	50	 	 	 	128206.5	 	 	 	641.3741	 	 	 	2.0000	 	 	 	0.0100	 	 	 	5.5	%	 	 	2.5	%	 	 	697.1566	 
	18	 	DHEB001	 	Airport Maintenance 2	 	China Southern Airlines Company Limited	 	Hagoyong (2004) No 16345	 	Baijiagang Airport, Daoli District	 	Civil Airport	 	Outside parcel red line “Liu Tong” and area inside red line “smooth”	 	 	50	 	 	 	102000	 	 	 	510.2716	 	 	 	2.0000	 	 	 	0.0100	 	 	 	5.5	%	 	 	2.5	%	 	 	554.6539	 



 






    	 



    	 



    

 


	19	 	DHEB002	 	Airport Material Area	 	China Southern Airlines Company Limited	 	Hagoyong (2004) No 16347	 	Baijiagang Airport, Daoli District	 	Civil Airport	 	Outside parcel red line “Liu Tong” and area inside red line “smooth”	 	 	50	 	 	 	22230.6	 	 	 	111.212	 	 	 	2.0000	 	 	 	0.0100	 	 	 	5.5	%	 	 	2.5	%	 	 	120.8935	 
	20	 	DHEB003	 	Airport Services and Catering	 	China Southern Airlines Company Limited	 	Hagoyong (2004) No 16349	 	Baijiagang Airport, Daoli District	 	Civil Airport	 	Outside parcel red line “Liu Tong” and area inside red line “smooth”	 	 	50	 	 	 	9751.9	 	 	 	48.7858	 	 	 	2.0000	 	 	 	0.0100	 	 	 	5.5	%	 	 	2.5	%	 	 	53.0389	 
	Harbin	 	 	 	 	 	 	 	 	 	 	 	 	 	 	267871.6500	 	 	 	1471.0900	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	1599.3620	 
	21	 	DCC002	 	Agency office	 	China Southern Airlines Company Limited	 	Hagoyong (2004) No 010500021	 	No.5038, Jilindadao, Erdao District (Economic and Technological Development Zone), Changchun	 	Business	 	Outside parcel red line “Liu Tong” and area inside red line “smooth”	 	 	27.4	 	 	 	7930.3	 	 	 	95.0977	 	 	 	6.0000	 	 	 	0.0164	 	 	 	5.5	%	 	 	2.5	%	 	 	103.3849	 
	22	 	DCC003	 	Erdao Office Area	 	China Southern Airlines Company Limited	 	Hagoyong (2004) No 10500003	 	1 Gongli, Jixiang Road, Erdao District, Changchun	 	Civil Airport	 	Outside parcel red line “Liu Tong” and area inside red line “smooth”	 	 	40.13	 	 	 	57146	 	 	 	537.4347	 	 	 	6.0000	 	 	 	0.0241	 	 	 	5.5	%	 	 	2.5	%	 	 	594.1943	 
	Changchun sub-total	 	 	 	 	 	 	 	 	 	 	 	 	 	 	65076.3000	 	 	 	632.5324	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	687.5792	 



 






    	 



    	 



    

 


	23	 	DCY001	 	Camp	 	China Southern Airlines Company Limited	 	Zhaoyangguoyong (2004) Zidi	 	No. 58, Section 4, Chaoyangdajie	 	Land for transportation	 	Outside parcel red line “Liu Tong” and area inside red line “smooth”	 	 	50	 	 	 	31226.67	 	 	 	139.1141	 	 	 	4.0000	 	 	 	0.0200	 	 	 	5.5	%	 	 	2.5	%	 	 	151.2327	 
	Zhaoyang sub-total	 	 	 	 	 	 	 	 	 	 	 	 	 	 	31226.6700	 	 	 	139.1141	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	151.2327	 
	24	 	DDL002	 	Office and hotel	 	China Southern Airlines Company Limited	 	Daguoyong (2004) Zi No 04001	 	No. 65, Yingke Road, Jichangjianjiedao, Ganjingzi	 	Land for business services	 	Outside parcel red line “Liu Tong” and area inside red line “smooth”	 	 	40	 	 	 	14403.4	 	 	 	621.4499	 	 	 	6.0000	 	 	 	0.0240	 	 	 	5.5	%	 	 	2.5	%	 	 	675.5151	 
	Dalian sub-total	 	 	 	 	 	 	 	 	 	 	 	 	 	 	14403.4000	 	 	 	621.4499	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	675.5151	 
	25	 	DSY011	 	Youth Hostel	 	China Southern Airlines Company Limited	 	Donglingguoyong (2004) No 02508	 	Xiantao Town, Dongling District, Shenyang	 	Transportation	 	Outside parcel red line “Liu Tong” and area inside red line “smooth”	 	 	50	 	 	 	1332.32	 	 	 	5.9133	 	 	 	2.0000	 	 	 	0.0100	 	 	 	5.5	%	 	 	2.5	%	 	 	6.4384	 
	26	 	DSY004	 	Cargo Area	 	China Southern Airlines Company Limited	 	Donglingguoyong (2004) No 02505	 	Xiantao Town, Dongling District, Shenyang	 	Transportation	 	Outside parcel red line “Liu Tong” and area inside red line “smooth”	 	 	50	 	 	 	17135.56	 	 	 	76.0585	 	 	 	2.0000	 	 	 	0.01000	 	 	 	5.5	%	 	 	2.5	%	 	 	82.6832	 



 






    	 



    	 



    

 


	27	 	DSY012	 	Measure and catering area	 	China Southern Airlines Company Limited	 	Donglingguoyong (2004) No 02506	 	Xiantao Town, Dongling District, Shenyang	 	Transportation	 	Outside parcel red line “Liu Tong” and area inside red line “smooth”	 	 	50	 	 	 	11412	 	 	 	50.6536	 	 	 	2.0000	 	 	 	0.0100	 	 	 	5.5	%	 	 	2.5	%	 	 	55.0691	 
	28	 	DSY001	 	Airport Material Area	 	China Southern Airlines Company Limited	 	Donglingguoyong (2004) No 02502	 	Xiantao Town, Dongling District, Shenyang	 	Transportation	 	Outside parcel red line “Liu Tong” and area inside red line “smooth”	 	 	50	 	 	 	14192.63	 	 	 	62.996	 	 	 	2.0000	 	 	 	0.0100	 	 	 	5.5	%	 	 	2.5	%	 	 	68.4848	 
	29	 	DSY015	 	Office Building	 	China Southern Airlines Company Limited	 	Donglingguoyong (2004) No 02509	 	Xiantao Town, Dongling District, Shenyang	 	Transportation	 	Outside parcel red line “Liu Tong” and area inside red line “smooth”	 	 	50	 	 	 	6971.394	 	 	 	30.9438	 	 	 	2.0000	 	 	 	0.0100	 	 	 	5.5	%	 	 	2.5	%	 	 	33.6454	 
	30	 	DSY002	 	Airport Services Area	 	China Southern Airlines Company Limited	 	Donglingguoyong (2004) No 02507	 	Xiantao Town, Dongling District, Shenyang	 	Transportation	 	Outside parcel red line “Liu Tong” and area inside red line “smooth”	 	 	50	 	 	 	54634.13	 	 	 	242.5008	 	 	 	2.0000	 	 	 	0.0100	 	 	 	5.5	%	 	 	2.5	%	 	 	263.5987	 
	31	 	DSY003	 	Parking apron	 	China Southern Airlines Company Limited	 	Donglingguoyong (2004) No 02501	 	Xiantao Town, Dongling District, Shenyang	 	Transportation	 	Outside parcel red line “Liu Tong” and area inside red line “smooth”	 	 	50	 	 	 	14518.87	 	 	 	64.4436	 	 	 	2.0000	 	 	 	0.0100	 	 	 	5.5	%	 	 	2.5	%	 	 	70.0583	 



 






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	32	 	DSY006	 	Parking apron	 	China Southern Airlines Company Limited	 	Donglingguoyong (2004) 
No 02503	 	Xiantao Town, Dongling District, Shenyang	 	Transportation	 	Outside parcel red line “Liu Tong” and area inside red line “smooth”	 	 	50	 	 	 	13397.5	 	 	 	59.4663	 	 	 	2.0000	 	 	 	0.0100	 	 	 	5.5	%	 	 	2.5	%	 	 	64.6482	 
	33	 	DSY008	 	Computer Center	 	China Southern Airlines Company Limited	 	Shenyangguoyong (2004) No 0342	 	No. 388 
Qingniandajie, Heping District, Shenyang	 	Land for scientific research and design	 	Outside parcel red line “Liu Tong” and area inside red line “smooth”	 	 	40	 	 	 	4545.7	 	 	 	150.4611	 	 	 	5.0000	 	 	 	0.0200	 	 	 	5.5	%	 	 	2.5	%	 	 	163.5664	 
	34	 	DSY009	 	Boiler Room	 	China Southern Airlines Company Limited	 	Shenyangguoyong (2004) No 0103	 	No. 388 
Qingniandajie, Heping District, Shenyang	 	Residential	 	Outside parcel red line “Liu Tong” and area inside red line “smooth”	 	 	30	 	 	 	5156.5	 	 	 	37.5589	 	 	 	5.0000	 	 	 	0.0150	 	 	 	5.5	%	 	 	2.5	%	 	 	40.8412	 
	Shenyang sub-total	 	 	 	 	 	 	 	 	 	 	 	 	143296.6040	 	 	 	780.9959	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	849.0337	 
	Shares leased assets	 	 	 	 	 	 	 	 	 	 	 	 	1064878.4940	 	 	 	5558.5677	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	6042.5664	 



 






    	 



    	 



    




 


	Breakdown of Real estate lease rental project of China Southern Group : Airline catering services leased assets	Exhibit 2


 


Breakdown
of Real estate lease rental project of China Southern Group :Airline catering services leased assets



 


	No	 	Asset no.	 	Parcel name	 	Land users at
 valuation date	 	Land use rights
 certificate number	 	Location of
 parcel	 	Registration
 purpose at
 valuation
 reference date	 	Actual
 development
 progress at
 valuation
 reference date	 	Remaining
 useful life
 of the land	 	 	Land area
 (m2)	 	 	Total net income
 (RMB0’000/year)	 	 	Land use tax
 unit price
 (RMB0’000/
 year)	 	 	Land use tax
 (RMB0’000/year)	 	 	Business
 tax rate	 	 	Management
 Fee Rate	 	 	Land reference
 annul lease
 rent
 (RMB0’000/
 year)	 
	1	 	DXJ011	 	Xinjiang Airport Catering	 	China Southern Airlines Company Limited	 	Niaoguoyobg (2004) No 0008754	 	No. 46 
Yingbin Road, Xinshi District	 	Transportation	 	Outside parcel red line “Liu Tong” and area inside red line “smooth”	 	 	39.26	 	 	 	14269.36	 	 	 	50.2813	 	 	 	1.5	 	 	 	0.0059	 	 	 	5.5	%	 	 	2.5	%	 	 	54.6600	 
	2	 	DHEB004	 	Heilongjiang Airoport Catering	 	China Southern Airlines Company Limited	 	Haguoyong (2004) 
No 16344	 	Baijiagang Airport, Daoli District	 	Land for Beiji International Trade	 	Outside parcel red line “Liu Tong” and area inside red line “smooth”	 	 	50	 	 	 	6962	 	 	 	34.8282	 	 	 	2	 	 	 	0.0100	 	 	 	5.5	%	 	 	2.5	%	 	 	37.8676	 
	3	 	DLD001	 	Dalian Beiji Trade Building	 	Dalian Baoshui District Beiji International Trading Company Limited	 	Baoshuiquguoyong (01) Zi No 4002	 	Storage and processing area, Baoshui District, Dalian	 	Civil Airport	 	Outside parcel red line “Liu Tong” and area inside red line “smooth”	 	 	50	 	 	 	7752	 	 	 	205.2457	 	 	 	6	 	 	 	0.0300	 	 	 	5.5	%	 	 	2.5	%	 	 	223.1258	 
	Airline catering services leased assets sub-total	 	 	 	 	 	 	 	 	 	 	 	 	28983.3600	 	 	 	290.3552	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	315.6534