UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16

under the Securities Exchange Act of 1934

For the month of August 2018

Commission File Number: 001-14550

China Eastern Airlines Corporation Limited

(Translation of Registrant’s name into English)

Board Secretariat’s Office

5/F, Block A2, Northern District, CEA Building

36 Hongxiang 3rd Road, Minhang District

Shanghai, China 200335

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:    ☒  Form 20-F    ☐  Form 40-F

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ☐

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

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): n/a

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.

Certain statements contained in this announcement may be regarded as “forward-looking statements” within the meaning of the U.S. Securities Exchange Act of 1934, as amended. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual performance, financial condition or results of operations of the Company to be materially different from any future performance, financial condition or results of operations implied by such forward-looking statements. Further information regarding these risks, uncertainties and other factors is included in the Company’s filings with the U.S. Securities and Exchange Commission. The forward-looking statements included in this announcement represent the Company’s views as of the date of this announcement. While the Company anticipates that subsequent events and developments may cause the Company’s views to change, the Company specifically disclaims any obligation to update these forward-looking statements, unless required by applicable laws. These forward-looking statements should not be relied upon as representing the Company’s views as of any date subsequent to the date of this announcement.

THIS CIRCULAR IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION

If you are in any doubt as to any aspect of this circular or the appropriate course of action, you should consult a stockbroker or other registered dealer in securities, bank manager, solicitor, professional accountant or other appropriate independent advisers.

If you have sold or transferred all your shares in China Eastern Airlines Corporation Limited, you should at once hand this circular to the purchaser or the transferee or to the bank, licensed securities dealer or other agent through whom the sale or transfer was effected for transmission to the purchaser or the transferee.

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this circular, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this circular.

This circular is for information purposes only and does not constitute an invitation or offer to acquire, purchase or subscribe for the securities.

(1) PROPOSED NON-PUBLIC ISSUANCE OF A SHARES AND

NON-PUBLIC ISSUANCE OF H SHARES UNDER A SPECIFIC MANDATE;

(2) PROPOSED AMENDMENTS TO THE ARTICLES OF ASSOCIATION;

(3) PROPOSED AMENDMENTS TO THE RULES FOR THE MEETING OF THE BOARD OF DIRECTORS; AND

(4) PROPOSED AMENDMENTS TO THE RULES FOR THE MEETING OF THE SUPERVISORY COMMITTEE

Capitalised terms used in this cover page shall have the same meanings as those defined in the section headed “Definitions” of this circular.

The EGM will be held at 9:00 a.m. on Thursday, 30 August 2018, and the A Shareholders Class Meeting and the H Shareholders Class Meeting will be held at 10:00 a.m. on Thursday, 30 August 2018 at Four Seasons Hall, 2/F, Shanghai International Airport Hotel (上海國際機場賓館二樓四季廳). A notice of the EGM and a notice of the H Shareholders Class Meeting, containing the resolutions to be considered at the EGM and the H Shareholders Class Meeting, have been despatched by the Company on 14 July 2018. Applicable proxy forms and attendance slips of the EGM and the H Shareholders Class Meeting have been despatched by the Company on 14 July 2018.

If you are not able to attend the EGM, the H Shareholders Class Meeting and/or to vote at the meetings, you are requested to complete and return the proxy forms in accordance with the instructions printed thereon as soon as possible and in any event not less than 24 hours before the time appointed for the holding of the EGM and the H Shareholders Class Meeting (or any adjournment thereof) to Hong Kong Registrars Limited at 17M Floor, Hopewell Centre, 183 Queen’s Road East, Wanchai, Hong Kong.

Completion and return of the proxy forms will not affect your rights to attend in person and vote at the EGM and the H Shareholders Class Meeting (or any adjournment thereof), should you so wish.

13 August 2018

CONTENTS

— i —

DEFINITIONS

In this circular, unless the context otherwise requires, the following expressions have the following meanings:

— 1 —

DEFINITIONS

— 2 —

DEFINITIONS

— 3 —

LETTER FROM THE BOARD

To the Shareholders

Dear Sir or Madam,

(1) PROPOSED NON-PUBLIC ISSUANCE OF A SHARES AND

NON-PUBLIC ISSUANCE OF H SHARES UNDER A SPECIFIC MANDATE;

(2) PROPOSED AMENDMENTS TO THE ARTICLES OF ASSOCIATION;

(3) PROPOSED AMENDMENTS TO THE RULES FOR THE MEETING OF

THE BOARD OF DIRECTORS; AND

(4) PROPOSED AMENDMENTS TO THE RULES FOR THE MEETING OF

THE SUPERVISORY COMMITTEE

— 4 —

LETTER FROM THE BOARD

Reference is made to the announcement of the Company dated 10 July 2018.

At the meeting of the Board held on 10 July 2018, the Board resolved to convene the EGM, the A Shareholders Class Meeting and the H Shareholders Class Meeting, to obtain approvals of the Shareholders, the A Shareholders and the H Shareholders in respect of the Non-public Issuance of A Shares and Non-public Issuance of H Shares under a specific mandate.

The purpose of this circular is to give you information on resolutions to be proposed at the EGM and the Class Meetings, to approve (among others) (1) the proposed Non-public Issuance of A Shares and Non-public Issuance of H Shares under a specific mandate; (2) the proposed amendments to the Articles of Association; (3) the proposed amendments to the Rules for the Meeting of the Board of Directors; and (4) the proposed amendments to the Rules for the Meeting of the Supervisory Committee, and to give recommendations to the Board, to enable you to make an informed decision on whether to vote for or against the proposed resolutions at the EGM, the A Shareholders Class Meeting and the H Shareholders Class Meeting (as the case may be).

The Company proposes the Non-public Issuance of A Shares and Non-public Issuance of H Shares under a specific mandate. The Non-public Issuance of A Shares and Non-public Issuance of H Shares are subject to, among others, the approval of Shareholders at the EGM, and the approval of A Shareholders and H Shareholders at their respective A Shareholders Class Meeting and H Shareholders Class Meeting by way of special resolutions. Apart from the approval of Shareholders at the EGM and the approval of A Shareholders and H Shareholders at the respective A Shareholders Class Meeting and H Shareholders Class Meeting, the Non-public Issuance of A Shares and the Non-public Issuance of H Shares shall also be subject to the approval of the CSRC, the SASAC, the Civil Aviation Administration of China (if required) and/or the East China Regional Administration of the Civil Aviation Administration of China.

Detailed proposal of the Non-public Issuance of A Shares of the Company is as follows:

The A Shares to be issued under non-public issuance are domestically listed ordinary shares (A Shares) denominated in RMB, with par value of RMB1.00 each.

— 5 —

LETTER FROM THE BOARD

The Non-public Issuance of A Shares is undertaken by way of non-public issuance to specific subscribers. The Company will issue shares to specific subscribers at an appropriate timing within the validity period upon obtaining the approval of the CSRC.

The subscribers of the Non-public Issuance of A Shares will make one-off subscription in cash.

The price benchmark date of the Non-public Issuance of A Shares shall be the first day of the issue period. The issue price, being the subscription price for the A Share Subscribers, shall be the average trading price (rounded up to the nearest two decimal places) of the A Shares of the Company for the 20 Shanghai Trading Days preceding the price benchmark date or the latest audited net assets per share attributable to holders of ordinary shares of the Company as of the price benchmark date, whichever is higher.

Specifically, the average trading price of the A Shares for the 20 Shanghai Trading Days preceding the price benchmark date = total trading amount of A Shares of the Company for the 20 Shanghai Trading Days preceding the price benchmark date / total trading volume of A Shares of the Company for the 20 Shanghai Trading Days preceding the price benchmark date. In the event that the Company distributes dividends, grants bonus shares, allots shares, converts capital reserve into share capital or carries out any other ex-right or ex-dividend activities causing any adjustment in the share prices for the 20 Shanghai Trading Days, the trading prices for the Shanghai Trading Days before such adjustment shall be calculated on the basis of the adjusted price caused by the ex-right or ex-dividend activities.

In the event that the Company distributes dividends, grants bonus shares, allots shares, converts capital reserve into share capital or carries out any other ex-right or ex-dividend activities during the period commencing from the balance sheet date of the latest audited financial reports as of the price benchmark date to the issuance date, adjustments shall be made to the above net assets per share attributable to holders of ordinary shares of the Company accordingly. In the event that the Company distributes dividends, grants bonus shares, allots shares, converts capital reserve into share capital or carries out any other ex-right or ex-dividend activities during the period commencing from the price benchmark date of the Non-public Issuance of A Shares to the issuance date, the issue price shall be adjusted on ex-right or ex- dividend basis.

— 6 —

LETTER FROM THE BOARD

The final issue price of A Shares under the Non-public Issuance of A Shares shall be determined by the Board or its authorized person(s), under the authorization granted at the EGM and Class Meetings, with the sponsor (the lead underwriter) of the Non-public Issuance of A Shares pursuant to the requirements of relevant laws and regulations and regulatory departments after being approved by the CSRC.

Under whatever circumstances, the issue price of the shares to be issued under the Non-public Issuance of A Shares shall not be lower than the latest audited net assets per share attributable to holders of ordinary shares of the Company as of the price benchmark date. As of 31 December 2017, the audited net asset per share attributable to holders of ordinary shares of the Company amounted to RMB3.67 per share. For illustrative purposes only, the minimum issue price of the shares under the Non-public Issuance of A Shares, being RMB3.67 per A Share, represents a discount of approximately 32% to the closing price of the A Shares of the Company on the Shanghai Stock Exchange on the Latest Practicable Date, being RMB5.41 per A Share.

The net price of each new A Share to be issued under the Non-public Issuance of A Shares will be determined and disclosed upon completion of the Non-public Issuance of A Shares and the determination of the relevant expenses incurred or to be incurred in relation to the Non-public Issuance of A Shares in accordance with the requirements of the Hong Kong Listing Rules.

The subscribers of the Non-public Issuance of A Shares are Juneyao Airlines, JuneYao Group and/or its designated subsidiaries and Structural Reform Fund.

Juneyao Airlines primarily engages in the business of air transportation of passengers and cargo, covering domestic (including Hong Kong, Macau and Taiwan) air transportation of passengers and cargo, international air transportation of passengers and cargo and catering services, etc. The controlling shareholder of Juneyao Airlines is JuneYao Group and the de facto controller of Juneyao Airlines is Mr. Wang Junjin.

JuneYao Group is a modern service conglomerate that primarily engages in enterprise investment. The major operations that it actually engages in are enterprise investment and project investment. Through its subordinate companies, it engages in various businesses covering five segments, namely air transportation, financial services, modern consumption, education services and technology and innovation. Both the controlling shareholder and de facto controller of JuneYao Group is Mr. Wang Junjin.

— 7 —

LETTER FROM THE BOARD

Structural Reform Fund is a “state-level” fund approved and named by the Premier of the State Council. It upholds significant missions such as optimising the structural reform of state-owned economy, improving industry concentration and enhancing the operational efficiency of state-owned capital. The fund focuses on the provision of support to projects such as industry optimization, transformation and upgrade, professional consolidation and international operation central of state-owned enterprises and key state-owned enterprises. It serves as a professional investment platform for supply-side structural reform in the state, promoting transformation and upgrade of central state-owned enterprises and key state-owned enterprises and encouraging a structural-reformed market operation. The controlling shareholder of Structural Reform Fund is China Chengtong Holdings Group Limited (中國誠通控股集團有限公司) and the de facto controller of Structural Reform Fund is the SASAC.

To the best knowledge, information and belief of the Directors having made all reasonable enquiry, the above A Share Subscribers and their ultimate beneficial owners are third parties independent of the Company and connected persons of the Company under the Hong Kong Listing Rules.

The number of shares to be issued under the Non-public Issuance of A Shares shall be not more than 1,616,438,355 shares (1,616,438,355 shares inclusive) and the gross proceeds shall be not more than RMB11,800,000,000 (RMB11,800,000,000 inclusive). Pursuant to the A Share Subscription Agreement entered into between the Company and each of Juneyao Airlines, JuneYao Group and Structural Reform Fund, respectively, the number and amount of shares to be subscribed by the A Share Subscribers are as follows:

In the event that the maximum number of A Shares to be issued by the Company (1,616,438,355 shares) × actual issue price £ maximum gross proceeds RMB11,800,000,000, the number of A Shares to be issued by the Company under the Non-public Issuance of A Shares shall be 1,616,438,355 shares. Each A Share Subscriber shall subscribe A Shares in accordance with the maximum number of A Shares intended to be subscribed.

In the event that the maximum number of A Shares to be issued by the Company (1,616,438,355 shares) × actual issue price > maximum gross proceeds RMB11,800,000,000, the number of A Shares to be issued by the Company under the Non-public Issuance of A Shares shall be determined based on the maximum gross proceeds (RMB11,800,000,000) divided by the actual issue price, and the final number of A Shares to be issued shall be calculated to the unit digit (rounded down). Based on the proportion of the maximum number of A Shares intended to be subscribed to the maximum number of A Shares to be issued, each A Share Subscriber shall adjust the number of A Shares to be subscribed accordingly.

— 8 —

LETTER FROM THE BOARD

In the event that the Company grants bonus shares, allots shares, converts capital reserve into share capital or undertakes any other ex-right activities during the period commencing from the date of resolution of the Board to the issuance date, the number of A Shares to be issued shall be adjusted accordingly. Within the aforementioned scope, the Board proposed to the EGM and Class Meetings to authorize the Board or authorized persons of the Board to determine the final amount of shares to be issued and the subscription amount of each subscriber with the sponsor (the lead underwriter) according to the progress of approval from the authority and actual situation when the issue is implemented. The number of shares to be issued under the Non-public Issuance of A Shares is subject to the final approval of the CSRC.

The gross proceeds to be raised from the Non-public Issuance of A Shares are determined based on the actual issue price and the final number of A Shares issued: gross proceeds = number of A Shares issued × actual issue price, and shall be not more RMB11,800,000,000 (RMB11,800,000,000 inclusive). After deducting relevant issuance expenses, the net proceeds to be raised from the Non-public Issuance of A Shares are intended to be used in the following projects:

If the actual amount of net proceeds from the Non-public Issuance of A Shares is less than the proposed amount of proceeds to be applied in the above projects, the Company will adjust and determine the final specific investment projects, order of priority and the specific investment amounts of each project based on the actual amount of net proceeds and the priority of each project, and will make up for the shortfall by utilizing internal capital of the Company or through other financing methods.

— 9 —

LETTER FROM THE BOARD

Prior to receipt of the proceeds to be raised from the Non-public Issuance of A Shares, the Company may contribute self-raised funds in accordance with the actual needs and progress of the projects. Upon receipt of the proceeds to be raised, the Company will replace the funds in accordance with the requirements under relevant laws and regulations.

The A Share Subscribers undertake to subscribe A Shares to be issued, and will not transfer the shares within thirty-six (36) months from the listing of A Shares under non-public issuance. If there are other requirements on the lock-up period of shares subscribed by the A Share Subscribers and the transfer of shares upon expiration from regulatory authorities related to the Non-public Issuance of A Shares, such other requirements shall be complied with. In the event that the A Shares subscribed by the A Share Subscribers are derived from circumstances such as distribution of dividends and conversion of capital reserves into share capital by the Company, the above lock- up arrangement shall also be complied with.

The A Share Subscribers who receive shares of the Company under the Non- public Issuance of A Shares and reduce their shareholding upon expiration of the lock- up period are required to comply with relevant requirements of laws, regulations, rules and regulatory documents such as the Company Law of the People’s Republic of China, the Securities Law of the People’s Republic of China and the Shanghai Listing Rules, as well as the Articles of Association of the Company.

A Shares to be issued under the non-public issuance will be listed and traded on the Shanghai Stock Exchange upon expiration of the lock-up period.

Both new Shareholders and existing Shareholders are entitled to the accumulated undistributed profits of the Company prior to the Non-public Issuance of A Shares upon the completion of the Non-public Issuance of A Shares.

The resolution in relation to the Non-public Issuance of A Shares shall remain valid for twelve (12) months from the date on which relevant resolutions are considered and approved at the EGM and the Class Meetings of the Company.

— 10 —

LETTER FROM THE BOARD

According to the proposal of the Non-public Issuance of A Shares, the Company and each of Juneyao Airlines, JuneYao Group and Structural Reform Fund entered into an A Share Subscription Agreement on 10 July 2018, respectively, and pursuant to which, in accordance with and subject to the terms and conditions under the A Share Subscription Agreement, the Company agreed to allot and issue to the A Share Subscribers, being Juneyao Airlines, JuneYao Group and/or its designated subsidiaries and Structural Reform Fund, and the A Share Subscribers agreed to subscribe for not more than 342,465,753 A Shares, 1,000,000,000 A Shares and 273,972,602 A Shares of the Company, respectively.

The major terms of the A Share Subscription Agreement are the same as the proposal of the Non-public Issuance of A Shares disclosed above. Other major terms of the A Share Subscription Agreement are as follows:

— 11 —

LETTER FROM THE BOARD

The Company will convene the EGM and Class Meetings to consider, and if thought fit, approve (among others) the Non-public Issuance of A Shares under a specific mandate.

Detailed proposal of the Non-public Issuance of H Shares of the Company is as follows:

The H Shares to be issued under non-public issuance are ordinary shares (H Shares) listed on Hong Kong Stock Exchange to be subscribed and traded in Hong Kong dollars, with par value of RMB1.00 each.

Unless otherwise required by applicable laws and regulations of the PRC and the Articles of Association, the H Shares under the non-public issuance shall rank pari passu with A Shares and H Shares in issue.

The Non-public Issuance of H Shares is undertaken by way of non-public issuance to specific subscribers. The Company will issue shares to specific subscribers at an appropriate timing within the required validity period upon obtaining the approval of the CSRC.

The subscribers of the Non-public Issuance of H Shares will make one-off subscription in cash.

— 12 —

LETTER FROM THE BOARD

The price benchmark date of the Non-public Issuance of H Shares shall be the first day of the issue period. The issue price, being the subscription price for the H Share Subscribers, shall be the average trading price (rounded up to the nearest two decimal places) of the H Shares of the Company for the 20 Hong Kong Trading Days preceding the price benchmark date or the latest audited net assets per share attributable to holders of ordinary shares of the Company as of the price benchmark date, whichever is higher.

Specifically, the average trading price of the H Shares for the 20 Hong Kong Trading Days preceding the price benchmark date = total trading amount of H Shares of the Company for the 20 Hong Kong Trading Days preceding the price benchmark date / total trading volume of H Shares of the Company for the 20 Hong Kong Trading Days preceding the price benchmark date. In the event that the Company distributes dividends, grants bonus shares, allots shares, converts capital reserve into share capital or carries out any other ex-right or ex-dividend activities causing any adjustment in the share prices for the 20 Hong Kong Trading Days, the trading prices for the Hong Kong Trading Days before such adjustment shall be calculated on the basis of the adjusted price caused by the ex-right or ex-dividend activities.

In the event that the Company distributes dividends, grants bonus shares, allots shares, converts capital reserve into share capital or carries out any other ex-right or ex-dividend activities during the period commencing from the balance sheet date of the latest audited financial reports as of the price benchmark date to the issuance date, adjustments shall be made to the above net assets per share attributable to holders of ordinary shares of the Company accordingly.

In the event that the Company distributes dividends, grants bonus shares, allots shares, converts capital reserve into share capital or carries out any other ex-right or ex-dividend activities during the period commencing from the price benchmark date of the Non-public Issuance of H Shares to the issuance date, the issue price shall be adjusted on ex-right or ex-dividend basis.

The final issue price of H Shares under the Non-public Issuance of H Shares shall be determined by the Board or its authorized person(s), under the authorization granted at the EGM and the Class Meetings, with the lead underwriter of the Non- public Issuance of H Shares pursuant to the requirements of relevant laws and regulations and domestic and overseas regulatory departments after being approved by domestic and overseas regulatory departments such as the CSRC and Hong Kong Stock Exchange or having completed the relevant domestic and overseas regulatory or approval processes.

Under whatever circumstances, the issue price of the shares to be issued under the Non-public Issuance of H Shares shall not be lower than the latest audited net assets per share attributable to holders of ordinary shares of the Company as of the price benchmark date. As of 31 December 2017, the audited net assets per share attributable to holders of ordinary shares of the Company amounted to RMB3.67 per share. For illustrative purposes only, the minimum issue price of the shares under the Non-public Issuance of H Shares, being HK$4.22 per H Share, represents a discount of approximately 9% to the closing price of the H Shares of the Company on the Hong Kong Stock Exchange on the Latest Practicable Date, being HK$4.65 (equivalent to approximately RMB4.05) per H Share. The exchange rate of HK$1.00 = RMB0.8703 has been used for the data above and does not constitute a representation that any amount has been, could have been or may be exchanged at such rate or any other rate or at all.

— 13 —

LETTER FROM THE BOARD

The net price of each new H Share to be issued under the Non-public Issuance    of H Shares will be determined and disclosed upon completion of the Non-public Issuance of H Shares and the determination of the relevant expenses incurred or to be incurred in relation to the Non-public Issuance of H Shares in accordance with the requirements of the Hong Kong Listing Rules.

The subscribers of the Non-public Issuance of H Shares are Juneyao Airlines and/or its designated controlled subsidiaries. To the best knowledge, information and belief of the Directors having made all reasonable enquiry, the above H Share Subscribers and their ultimate beneficial owners are third parties independent of the Company and connected persons of the Company under the Hong Kong Listing Rules.

The number of H Shares to be issued under the Non-public Issuance of H Shares shall be not more than 517,677,777 shares (517,677,777 shares inclusive).

In the event that the Company grants bonus shares, allots shares, converts capital reserve into share capital or undertakes any other ex-right activities during the period commencing from the date the issuance proposal of the Non-public Issuance of H Shares considered and passed by the Board to the issuance date, the number of H Shares to be issued under the Non-public Issuance of H Shares shall be adjusted accordingly. Within the aforementioned scope, the final number of H Shares to be issued shall be determined by the Board or authorized persons of the Board, under the authorization granted at the EGM and the Class Meetings, with the lead underwriter according to the actual situation when the issue is implemented. The number of H Shares to be issued under the Non-public Issuance of H Shares is subject to the final approval of the CSRC.

The gross proceeds to be raised from the Non-public Issuance of H Shares shall not be more than HK$3,550,300,000 (HK$3,550,300,000 inclusive), and, after deducting relevant issuance expenses, shall all be used to supplement the general working capital, including but not limited to the repayment of part of the outstanding loans (the total interest bearing liabilities of the Company amounts to RMB130,669 million as of 31 December 2017), the purchase of aviation oil, the payment of administrative expenses of the Company and etc.

The H Share Subscribers undertake to subscribe H Shares to be issued and will not transfer the shares within thirty-six (36) months from the listing of Non-public Issuance of H Shares. If there are other requirements on the lock-up period of shares subscribed by the H Share Subscribers and the transfer of shares upon expiration from regulatory authorities related to the issuance, such other requirements shall be complied with. In the event that the H Shares subscribed by the H Share Subscribers are derived from circumstances such as distribution of dividends and conversion of capital reserves into share capital by the Company, the above lock-up arrangement shall also be complied with.

— 14 —

LETTER FROM THE BOARD

The H Share Subscribers who receive shares of the Company under the Non- public Issuance of H Shares and reduce their shareholding upon expiration of the lock- up period are required to comply with relevant requirements of laws, regulations, rules and regulatory documents, such as the Company Law of the People’s Republic of China and relevant regulatory rules of the Hong Kong Stock Exchange, as well as the Articles of Association of the Company.

The Company will make application to the Hong Kong Stock Exchange for the listing and trading of H Shares to be issued under the Non-public Issuance of H Shares. H Shares to be issued under the non-public issuance can be traded on the Hong Kong Stock Exchange upon expiration of the lock-up period.

Both new Shareholders and existing Shareholders are entitled to the accumulated undistributed profits of the Company prior to the Non-public Issuance of H Shares upon the completion of the Non-public Issuance of H Shares.

The resolution in relation to the Non-public Issuance of H Shares shall remain valid for twelve (12) months from the date on which relevant resolutions are considered and approved at the EGM and the Class Meetings of the Company.

According to the proposal of the Non-public Issuance of H Shares, the Company and Juneyao Airlines entered into an H Share Subscription Agreement on 10 July 2018, and pursuant to which, in accordance with and subject to the terms and conditions under the H Share Subscription Agreement, the Company agreed to allot and issue to the H Share Subscribers, being Juneyao Airlines and/or its designated controlled subsidiaries, and the H Share Subscribers agreed to subscribe for not more than 517,677,777 H Shares of the Company.

— 15 —

LETTER FROM THE BOARD

The major terms of the H Share Subscription Agreement is the same as the proposal of the Non-public Issuance of H Shares disclosed above. Other major terms of the H Share Subscription Agreement are as follows:

The Company will convene the EGM and Class Meetings to consider, and if thought fit, approve (among others) the Non-public Issuance of H Shares under a specific mandate.

In the event that the Board, upon obtaining the specific mandate, proceed to exercise the specific mandate to issue new H Shares, the Company will make application to the Listing Committee of Hong Kong Stock Exchange for the listing and trading of all of the new H Shares issued under the Non-public Issuance of H Shares.

— 16 —

LETTER FROM THE BOARD

The Non-public Issuance of A Shares and the Non-public Issuance of H Shares are inter-conditional. “Inter-conditional” refers to the circumstance in which if the Non-public Issuance of A Shares or the Non-public Issuance of H Shares is not approved or verified by all the requirements of any of the applicable laws and regulations, including but not limited to the approval or verification by the Company’s EGM and Class Meetings, the Civil Aviation Administration of China (if required) and/or the East China Regional Administration of the Civil Aviation Administration of China, the SASAC, the CSRC and other regulatory departments, or due to other reasons that results in the failure of issuance, any of the contents of the Non-public Issuance of A Shares and the Non-public Issuance of H Shares will not be implemented.

The number of shares to be issued under the Non-public Issuance of A Shares shall be not more than 1,616,438,355 shares (1,616,438,355 shares inclusive). The number of shares to be issued under the Nonpublic Issuance of H Shares shall be not more than 517,677,777 shares (517,677,777 shares inclusive). For illustrative purposes only, based on the maximum number of shares to be issued under the Non-public Issuance of A Shares and the Non-public Issuance of H Shares:

— 17 —

LETTER FROM THE BOARD

For reference and illustrative purposes only, assuming that: (i) the specific mandate is granted by the Shareholders at the EGM and the A Shareholders and H Shareholders at their respective A Shareholders Class Meeting and H Shareholders Class Meeting; (ii) the Board exercises in full    the specific mandate to issue new A Shares and new H Shares; (iii) all conditions for the issue and placing of new A Shares and new H Shares have been satisfied; (iv) each of the A Share Subscribers subscribes for the maximum number of A Shares to be subscribed for under their respective A Share Subscription Agreement; and (v) each of the H Share Subscribers subscribes for the maximum number of H Shares to be subscribed for under their respective H Share Subscription Agreement, the possible changes in the share capital and shareholding structure of the Company will be as follows:

— 18 —

LETTER FROM THE BOARD

Based on the maximum number of shares to be issued under the Non-public Issuance of A Shares and the Non-public Issuance of H Shares, upon completion of the Non-public Issuance of A Shares and the Non-public Issuance of H Shares, the shareholding percentage of CEA Holding in the Company will decrease from 56.38% to a lowest of approximately 49.13%. CEA Holding will remain as the controlling Shareholder of the Company, and the control of the Company will remain unchanged.

Upon the completion of the Non-public Issuance of A Shares and the Non-public Issuance of H Shares, pursuant to the information of the Company available in public and to the knowledge of the Directors, the Directors believe that the Company will continue to comply with the requirement of minimum public float under Rule 8.08(1)(a) of the Hong Kong Listing Rules.

During the 12 months prior to the Latest Practicable Date, the Company did not conduct any financing activities involving the issue of equity securities.

The Non-public Issuance of A Shares and the Non-public Issuance of H Shares are important measures in response to the mixed ownership reform of the PRC and significant strategies to promote the construction of “Five Centers” (namely “International Economic, Financial, Shipping, Trading, Technology Innovation”) and “Four Brands” (namely “Service, Made in Shanghai, Shopping in Shanghai and Shanghai Culture”) in Shanghai. The issuances will enable the Company to expand the scale of its fleet of aircraft, fulfil the demand of aviation training of the Company and supplement engine resources, with a view to fulfilling the rising business demand of the Company, enhancing the core competence of the Company’s major operations and further increasing the profitability of the Company. Meanwhile, the issuances are beneficial to reduce the gearing ratio of the Company, improve the shareholding structure and capital structure and lay a strong foundation for the Company to achieve its strategic goals.

On one hand, considering that the A Share Subscribers and H Share Subscribers are market leading players in their respective industry, the introduction of such strategic investors in the Company is beneficial to the Company’s long term development. Therefore apart from the Non-public Issuance of A Shares and the Non-public Issuance of H Shares, the Company has not considered other alternative equity financing methods (e.g. rights issue, open offer and etc.). On the other hand, the Company has also sought debt financing methods for financing the projects to be invested in as set out in section headed “1.1 Non-public Issuance of A Shares - 1.1.1 Issuance proposal - (6) Use of Proceeds” and the supplementation of general working capital.

— 19 —

LETTER FROM THE BOARD

The Directors are of the opinion that the Non-public Issuance of A Shares and the Non-public Issuance of H Shares are in the interest of the Company and the Shareholders as a whole.

Upon the completion of the Non-public Issuance of A Shares and the Non-public Issuance of H Shares, there will be changes in the Company’s registered capital, total amount of shares and etc. In light of the aforementioned circumstances, it was proposed in the EGM that approval be given in respect of authorizing the Board and its authorized persons (it is advised that the persons authorized by the Board should be the chairman and/or the vice chairman of the Company) upon the completion of the Non-public Issuance of A Shares and the Non-public Issuance of H Shares, pursuant to the results of the Non-public Issuance of A Shares and the Non-public Issuance of H Shares, to make necessary amendments to the relevant terms in the Articles of Association of China Eastern Airlines Corporation Limited, such as Article 21 (requirements on the total amount of shares of the Company), Article 22 (requirements on the total amount of shares of and the proportion represented by each of A-shares and H-shares of the Company) and Article 25 (requirements on the Company’s registered capital), and perform in time the obligations of disclosure of relevant information.

The amendments to the Articles of Association will become effective subject to the approval in the EGM and the completion of the Non-public Issuance of A Shares and the Non-public Issuance of H Shares.

Details of the proposed amendments are as follows:

As approved by the CSRC, the total amount of shares of the Company is 14,467,585,682 shares.

Amended to be:

As approved by the CSRC, the total amount of shares of the Company is [Number to be determined according to the issuance proposal approved by the relevant regulatory authorities and the issuance results] shares.

The Company has issued a total of 14,467,585,682 ordinary shares, comprising a total of 9,808,485,682 A Shares, representing 67.80% of the total share capital of the Company, a total of 4,659,100,000 H Shares, representing 32.20% of the total share capital of the Company.

Amended to be:

The Company has issued a total of [Number to be determined according to the issuance proposal approved by the relevant regulatory authorities and the issuance results] ordinary shares, comprising a total of [Number to be determined according to the issuance proposal approved by the relevant regulatory authorities and the issuance results] A Shares, representing [Number to be determined according to the issuance proposal approved by the relevant regulatory authorities and the issuance results]% of the total share capital of the Company, a total of [Number to be determined according to the issuance proposal approved by the relevant regulatory authorities and the issuance results] H Shares, representing [Number to be determined according to the issuance proposal approved by the relevant regulatory authorities and the issuance results]% of the total share capital of the Company.

— 20 —

LETTER FROM THE BOARD

The registered capital of the Company is RMB14, 467,585,682.

Amended to be:

The registered capital of the Company is RMB[Number to be determined according to the issuance proposal approved by the relevant regulatory authorities and the issuance results].

To ensure the smooth progress of the Non-public Issuance of A Shares and the Non-public Issuance of H Shares of the Company, pursuant to the laws and regulations such as the Company Law of the People’s Republic of China, the Securities Law of the People’s Republic of China, Measures for the Administration of the Listed Company Issuing New Shares, the Detailed Implementation Rules for the Non-public Issuance of Stocks by Listed Companies and the Hong Kong Listing Rules, as well as the rules of stock exchanges and relevant requirements of the Articles of Association, the Board proposed to the EGM and Class Meetings of the Company to grant the Board and its authorized persons (it is advised that the persons authorized by the Board should be the chairman and/or the vice chairman of the Company) full discretion to conduct the relevant matters of the Non-public Issuance of A Shares and the Non-public Issuance of H Shares, including but not limited to:

— 21 —

LETTER FROM THE BOARD

— 22 —

LETTER FROM THE BOARD

The authorization shall be effective for a period of twelve (12) months from the date of approval on the resolution of authorization at the EGM and the Class Meetings of the Company.

The following resolutions (among others) shall also be submitted to the EGM to be considered and, if thought fit, approved by the Shareholders, pursuant to relevant regulatory requirements in the PRC. Resolutions b, c, e, f, g and i below shall be submitted to the A Shareholders Class Meeting and the H Shareholders Class Meeting, respectively, to be considered and, if thought fit, approved by the A Shareholders and H Shareholders, pursuant to relevant regulatory requirements in the PRC.

Details of the above resolution are set out in the overseas regulatory announcement of the Company dated 10 July 2018 published on the website of the Hong Kong Stock Exchange. Summary of the aforementioned resolution in the overseas regulatory announcement is as follows: the Board has assessed each of the relevant matters of the Company with reference to the qualifications and conditions of the Non-public Issuance of A Shares to specific subscribers by listed companies, and is of the view that, the Company fulfils all conditions of non-public issuance of RMB denominated ordinary shares (A Shares) as required by the Company Law of the People’s Republic of China, the Securities Law of the People’s Republic of China, Measures for the Administration of the Listed Company Issuing New Shares and the Detailed Implementation Rules for the Non-public Issuance of Stocks by Listed Companies.

Details of the above resolution are set out in the announcement of the Company dated 10 July 2018 published on the website of the Hong Kong Stock Exchange in relation to the Non-public Issuance of A Shares and the Non-public Issuance of H Shares. Major details of the above resolution are set out in the paragraph “Proposed Non-public Issuance of A Shares and Non-public Issuance of H Shares under a specific mandate — Detailed proposal of the Non- public Issuance of A Shares and the Non-public Issuance of H Shares” of this letter from the Board.

— 23 —

LETTER FROM THE BOARD

Details of the above resolution are set out in the overseas regulatory announcement of the Company dated 10 July 2018 published on the website of the Stock Exchange. Major details of the above resolution are set out in the paragraph “Proposed Non-public Issuance of A Shares and Non-public Issuance of H Shares under a specific mandate — Detailed proposal of the Non- public Issuance of A Shares and the Non-public Issuance of H Shares” of this letter from the Board and Appendix I and Appendix II of this circular.

Details of the above resolution are set out in the overseas regulatory announcement of the Company dated 10 July 2018 published on the website of the Hong Kong Stock Exchange and Appendix III of this circular.

Details of the above resolution are set out in the overseas regulatory announcement of the Company dated 10 July 2018 published on the website of the Hong Kong Stock Exchange and Appendix II of this circular.

The Company intends to enter into a conditional A Share Subscription Agreement with each of Juneyao Airlines, JuneYao Group and Structural Reform Fund, and enter into a conditional H Share Subscription Agreement with Juneyao Airlines. Details of the A Share Subscription Agreement and the H Share Subscription Agreement are set out in the paragraph “Proposed Non-public Issuance of A Shares and Non-public Issuance of H Shares under a specific mandate — Detailed proposal of the Non-public Issuance of A Shares and the Non- public Issuance of H Shares” of this letter from the Board.

Details of the above resolution are set out in the overseas regulatory announcement of the Company dated 10 July 2018 published on the website of the Hong Kong Stock Exchange. Summary of the aforementioned resolution in the overseas regulatory announcement is as follows: pursuant to the requirements of relevant laws and regulations, such as the Shanghai Listing Rules, as well as regulatory documents, the Articles of Association and the management system of related party transactions of China Eastern Airlines Corporation Limited, based on the maximum number of shares to be issued under the Non-public Issuance of A Shares and the Non-public Issuance of H Shares, Juneyao Airlines and JuneYao Group will own in total more than 5% of shares of the Company after completion of issuance, and are deemed as related parties of the Company. Therefore, the subscription of A Shares and H Shares under the non- public issuance by Juneyao Airlines and JuneYao Group constitutes related party transactions of the Company.

— 24 —

LETTER FROM THE BOARD

The subscription of A Shares and H Shares under the non-public issuance by Juneyao Airlines and JuneYao Group does not constitute connected transactions as required under the Hong Kong Listing Rules.

Details of the above resolution are set out in the paragraph “Proposed Non-public Issuance of A Shares and Non-public Issuance of H Shares under a specific mandate — Proposed amendments to the Articles of Association” of this letter from the Board.

Details of the above resolution are set out in the paragraph “Proposed Non-public Issuance of A Shares and Non-public Issuance of H Shares under a specific mandate — Authorization to the Board and its authorized persons” of this letter from the Board.

Details of the above resolution are set out in the overseas regulatory announcement of the Company dated 10 July 2018 published on the website of the Hong Kong Stock Exchange and Appendix IV of this circular.

Details of the above resolution are set out in the overseas regulatory announcement of the Company dated 10 July 2018 published on the website of the Hong Kong Stock Exchange and Appendix V of this circular.

The Board, at the 15^th ordinary meeting of the eighth session of the Board convened on 10 July 2018, considered and approved the “Resolution in relation to the amendments to certain provisions of the Articles of Association”, the “Resolution in relation to the amendments to certain provisions of the Rules for the Meeting of the Board of Directors” and the “Resolution in relation to the amendments to certain provisions of the articles of association of the audit and risk management committee of the Board”.

The supervisory committee of the Company, at the 17^th meeting of the eighth session of the supervisory committee convened on 10 July 2018, considered and approved the “Resolution in relation to the amendments to certain provisions of the Rules for the Meeting of the Supervisory Committee”.

— 25 —

LETTER FROM THE BOARD

Amendments to the Articles of Association, the Rules for the Meeting of the Board of Directors and the Rules for the Meeting of the Supervisory Committee are subject to the details set out in Appendix VI, Appendix VII and Appendix VIII of this circular.

The proposed amendments to the Articles of Association, the Rules for the Meeting of the Board of Directors and the Rules for the Meeting of the Supervisory Committee shall become effective subject to the consideration and approval of the Shareholders at the EGM.

The Company will convene the EGM, the A Shareholders Class Meeting and the H Shareholders Class Meeting, to enable the Shareholders to consider, and if thought fit, approve (among others) the Non-public Issuance of A Shares and the Non-public Issuance of H Shares, the proposed amendments to the Articles of Association, the proposed amendments to the Rules for the Meeting of the Board of Directors and the proposed amendments to the Rules for the Meeting of the Supervisory Committee. Details of the EGM and the H Shareholders Class Meeting, and the resolutions to be proposed at those meetings are set out in the “Notice of 2018 Third Extraordinary General Meeting” and “Notice of H Shareholders Class Meeting” despatched on 14 July 2018 by the Company.

To the best knowledge and belief of the Directors, Juneyao Airlines, who owns 12,000,000 H Shares of the Company, is required to be abstain from voting in respect of resolutions 2, 3, 6, 7 and 11 set out in the “Notice of 2018 Third Extraordinary General Meeting” and resolutions 1, 2, 4, 5 and 6 set out in the “Notice of H Shareholders Class Meeting”. Save as disclosed in this circular, there is no other Shareholder that has a material interest in the Non-public Issuance of A Shares and/or the Non-public Issuance of H Shares and is required to abstain from voting at the EGM, the A Shareholders Class Meeting and/or H Shareholders Class Meeting.

Please note that, apart from the approvals given by the Shareholders at the EGM and A Shareholders and H Shareholders at their respective A Shareholders Class Meeting and H Shareholders Class Meeting, the Non-public Issuance of A Shares and the Non-public Issuance of H Shares shall be subject to the approval by the CSRC, the SASAC, the Civil Aviation Administration of China (if required) and/or the East China Regional Administration of the Civil Aviation Administration of China. There is no assurance that the Non-public Issuance of A Shares and the Non-public Issuance of H Shares will proceed. Investors are advised to exercise caution when dealing in H Shares. The Company will make timely disclosure on any matters in relation to the further details of the Non-public Issuance of A Shares and the Non-public Issuance of H Shares.

This circular, for which the Directors collectively and individually accept full responsibility, includes particulars given in compliance with the Hong Kong Listing Rules for the purpose of giving information with regard to the Company. The Directors, having made all reasonable enquiries, confirm that to their knowledge and belief, the information contained in this circular is accurate and complete in all material respects and not misleading or deceptive, and there are no other matters the omission of which would make this circular or any statement herein misleading.

— 26 —

LETTER FROM THE BOARD

The Board considers that (1) the proposed Non-public Issuance of A Shares and Non-public Issuance of H Shares under a specific mandate; (2) the proposed amendments to the Articles of Association; (3) the proposed amendments to the Rules for the Meeting of the Board of Directors; and (4) the proposed amendments to the Rules for the Meeting of the Supervisory Committee are in the interests of the Company and the Shareholders as a whole. Accordingly, the Board recommends that the Shareholders and H Shareholders to vote in favour of the resolutions to be proposed at the EGM and the H Shareholders Class Meeting.

Your attention is also drawn to the appendices to this circular.

— 27 —

Among the proceeds from the Non-public Issuance of A Shares, RMB9,021 million will be used for the introduction of a total of 18 aircraft, including three Boeing B737-8 aircraft, three Boeing B787-9 aircraft, ten Airbus A320-251N aircraft and two Airbus A350-900 aircraft, with a view to expanding the scale of aircraft fleet of the Company, optimizing the structure of aircraft fleet, enhancing transportation capacity and meeting the growing demand of operations. Among the proceeds from the Non-public Issuance of A Shares, RMB996 million will be used for the purchase of a total of 15 aircraft simulators, including one A350#1 aircraft simulator, one B787#1 aircraft simulator, one A320#9(NEO) aircraft simulator, one B737MAX#2 aircraft simulator, one B737MAX#3 aircraft simulator, one B737MAX#4 aircraft simulator, four B737 series aircraft simulators and five A320 series aircraft simulators, with a view to fulfilling the flexible training demand of pilots, enhancing the professionality of pilots and reducing the hourly training expenses for pilot. Among the proceeds from the Non-public Issuance of A Shares, RMB1,783 million will be used for the purchase of a total of 20 standby engines, including two GEnx-1B(full), two GEnx-1B(core), three Trent XWB-84, eight LEAP-1A26 and five LEAP-1B standby engines, with a view to meeting the demand of engines brought about by the expansion of business and scale of aircraft fleet of the Company.

The investment projects of proceeds from the Non-public Issuance of A Shares are related to the principal operations of the Company and the proceeds from the Non-public Issuance of H Shares will be used in supplementing the general working capital of the Company, which will not bring material effect to the principal operations of the Company or result in the integration of operations and assets. The Non-public Issuance of A Shares and the Non-public Issuance of H Shares will further reinforce and strengthen the principal operations of the Company, enhance the Company’s core competitive strengths and profitability, enlarge its market share, build a good brand image and lay a solid foundation for the sustainable development in the future.

Upon the completion of the Non-public Issuance of A Shares and the Non-public Issuance of H Shares, there will be changes in the registered capital, total number of Shares and shareholding structure of the Company. The Company will complete the amendments to the relevant provisions of the Articles of Association based on the results of the non-public issuance, and the procedures of the change of industrial and commercial registration.

Before the non-public issuance, the total share capital of the Company is 14,467,585,682 shares, of which, CEA Holding directly and indirectly owns 5,530,240,000 A Shares of the Company. Meanwhile, CEA Holding owns 2,626,240,000 H Shares of the Company through CES Global, representing approximately 56.38% of the total number of shares in issue of the Company in total, and is a controlling Shareholder of the Company.

— 28 —

Based on the maximum number of shares to be issued under the Non-public Issuance of A Shares and the Non-public Issuance of H Shares, upon completion of the Non-public Issuance of A Shares and the Non-public Issuance of H Shares, the shareholding percentage of CEA Holding in the Company will decrease from 56.38% to a lowest of approximately 49.13%, remaining a relatively high proportion. CEA Holding will remain as the controlling Shareholder of the Company, and the control of the Company will remain unchanged. Juneyao Airlines and JuneYao Group and/or its designated subsidiaries will own in total not more than 10% of the enlarged A Shares and not more than 10% of the enlarged H Shares solely through the Non-public Issuance of A Shares and the Non- public Issuance of H Shares. The shareholding percentage of Structural Reform Fund shall be less than 2%.

Upon the completion of the Non-public Issuance of A Shares and the Non-public Issuance of H Shares, there will be no material change in the structure of senior management of the Company.

The proceeds from the Non-public Issuance of A Shares will mainly be used in the introduction of aircraft, purchase of aircraft simulators and standby engines, which are related to the principal operations of the Company. The proceeds from the Non-public Issuance of H Shares will be used in supplementing the general working capital of the Company. The Non-public Issuance of A Shares and the Non-public Issuance of H Shares will not bring material effect to the principal operations or revenue structure of the Company. Air transportation service and related businesses will remain as the principal operations of the Company after issuance.

Upon the completion of the non-public issuance, total assets and net assets of the Company will increase accordingly, the capital strength will be improved, the level of net assets will be enhanced and the gearing ratio will be lowered, which will help to optimize the capital structure of the Company, improve its profitability, enhance its capacity in resisting financial risks and the overall competitiveness of the Company, providing a strong support to the Company to further take advantage of its strengths in main businesses. As of 31 March 2018, the gearing ratio of the Company was 74.08%. Based on the gross proceeds from the non-public issuance of A Shares and H Shares, the gearing ratio of the Company will decrease to a lowest of 69.55% after the completion of the issuance.

— 29 —

The proceeds from the Non-public Issuance of A Shares will be used in the introduction of aircraft, purchase of aircraft simulators and standby engines, which will effectively expand the scale of the Company’s aircraft fleet, supplement engine resources, further enhance the air transportation capacity of the Company, promote the development of its principal operations and provide a strong support to the continuous growth of business of the Company. The proceeds from the Non-public Issuance of H Shares, after deducting relevant issuance expenses, will be used in supplementing the general working capital of the Company, which will effectively alleviate the capital pressure of the Company, fulfil the demand for general working capital of the Company in the continuous development of its principal operations, further optimize its capital structure, reduce financial costs and enhance its profitability.

Upon the completion of the non-public issuance of A Shares and H Shares, there will be an increase in the Company’s cash inflow from financing activities, which will effectively alleviate the cash flow pressure from business growth. When the proceeds are in place and are effectively used, the cash inflow from future operating activities will also increase. The quality of cash flow of the Company will be further improved, the capital strength and risk-resisting capacity will be significantly enhanced, laying a foundation for business expansion.

Upon the completion of the Non-public Issuance of A Shares and the Non-public Issuance of H Shares, there will be no change in the Company’s business relationship and management relationship with CEA Holding, the controlling Shareholder, and its associates, and there will be neither horizontal competition or potential horizontal competition, nor new related party transactions.

Upon the completion of the Non-public Issuance of A Shares and the Non-public Issuance of H Shares, there will be no capital or assets of the Company occupied by the controlling Shareholder and its related party and there will be no guarantee by the Company for the controlling Shareholder and its related party.

When the proceeds from the non-public issuance of A Shares and H Shares are in place, the total assets and net assets of the Company will increase simultaneously, thereby reducing the gearing ratio of the Company, enhancing its solvency position, further improving its financial position and capital structure, which help to further enhance the Company’s capacity in resisting risks and achieve long term sustainable development.

— 30 —

To enhance the core competence of the Company, improve the capital structure of the Company, further enhance its profitability, maintain the sustainable development of the Company, strengthen and improve its market position and provide better investment return for investors, the Company intends to introduce 18 aircraft, purchase 15 aircraft simulators and purchase 20 standby engines with the proceeds from the Non-public Issuance of A Shares.

The gross proceeds from the Non-public Issuance of A Shares shall not be more than RMB11,800,000,000 (RMB11,800,000,000 inclusive). The net proceeds, after deducting issuance expenses, are intended to be used in the following projects:

If the actual amount of net proceeds from the Non-public Issuance of A Shares is less than the proposed amount of proceeds to be applied in the above projects, the Company will adjust and determine the final investment projects, priority of investment and the actual investment amounts of each project based on the actual amount of net proceeds and the priority of each project, and will make up for the shortfall by utilizing internal capital of the Company or through other financing methods.

Prior to receipt of the proceeds to be raised from the Non-public Issuance of A Shares, the Company may contribute self-raised funds in accordance with the actual needs and progress of the projects. Upon receipt of the proceeds to be raised, the Company will replace the funds in accordance with the procedures under relevant laws and regulations.

The Company intends to introduce 18 aircraft, including three Boeing B737-8 aircraft, three Boeing B787-9 aircraft, ten Airbus A320-251N aircraft and two Airbus A350-900 aircraft, with RMB9,021 million of the proceeds from the Non-public Issuance of A Shares. The total consideration for the introduction is USD1,511 million (equivalent to approximately RMB9,670 million)¹. The Company intends to pay RMB9,021 million using the proceeds from the Non- public Issuance of A Shares. The expected delivery date for the 18 aircraft to be introduced will be in 2018.

— 31 —

The demand of global aviation travel continued to rise. According to the estimated data published by International Air Transport Association (IATA), the global aviation industry in 2017 had a rise of 7.5% in total passenger traffic volume compared to last year. The number of passengers carried was 4,081 million, representing an increase of 7.11% from last year. The annual average passenger load factor has reached 81.2%. It is estimated that the total passenger traffic volume will increase by 6.0% in 2018; the number of passengers carried will reach 4,311 million, representing an increase of 5.6% from last year; the annual average passenger load factor will reach 81.4%. It is expected that the overall profit of airlines will increase by 11% to USD38.4 billion in 2018.

During the “13th Five Year” period, the economic development of the PRC has entered new norm and is expected to maintain mid to high speed growth. For the State, the opening up and regional development strategies such as “One Belt One Road” initiative, coordinated development of Beijing, Tianjin and Hebei and the Yangtze River economic zone, etc., are promoted continuously. For cities, “Five Centers” are constructed and “Four Brands” are established in Shanghai, brining development opportunities for the air transportation industry. Meanwhile, along with the optimization and upgrade of economic structure and deepening of supply side reform, consumption further enhances the economic well-being, the per capita disposable income could probably increase further. With public traveling became more and more popular, the travelling demand and payment ability of the public rise significantly. It is expected that the total traffic volume and passenger traffic volume during the “13th Five year” period will maintain a double-digit average annual growth. The portion of passenger traffic volume in the integrated transportation system will be further increased.

As one of the three key state-owned large-size aviation enterprise groups, the rapid growth in economic well-being and air transportation industry impose a higher level of demand on the integrated competence of the Company. The Company intends to enhance its air transportation capacity through the reasonable expansion of the size of its aircraft fleet, continuously promote the “Hub Network Operational Strategy”, solidify its core markets, control major markets, strengthen key markets, increase flight and airways destination so as to expand the flight network, strategically preparing for the increase of market share and continuously strengthening the competitive edge of the Company in the industry.

The Company has always strived on updating and optimizing the fleet structure, introducing new aircraft continually, retiring aircraft of old models. As of the end of 2017, the Company’s average fleet age was 5.5 years, ranking among the top in the world, thereby became one of the biggest aviation companies equipped with the most streamlined and the most efficient fleet among the world’s large airline companies. In 2017, among its major fleet, the Company introduced a total of 73 aircraft and retired a total of 18 aircraft. With the introduction of B737-8MAX aircraft and the gradual retirement of B767 aircraft, the Company’s fleet age structure has maintained to be younger. As of 31 December 2017, the Company operated a fleet of 637 aircraft, which included 627 passenger aircraft and 10 business aircraft held under trust.

— 32 —

The 18 aircraft proposed to be introduced include three Boeing B737-8 aircraft, three Boeing B787-9 aircraft, ten Airbus A320-251N aircraft and two Airbus A350-900 aircraft. The aircraft proposed to be introduced are major models in the market, which are more economic and flexible and are in line with the future strategies of the Company. Among which, A320 series and B737 series are major model series of the Company. As of the end of 2017, the Company operated a total of 291 A320 series aircraft and 254 B737 series aircraft. The Company engaged A320 series and B737 series aircraft in domestic and surrounding countries and regional routes, enhancing the matching level between fleet model and route, transportation capacity and market. The introduction of ten Airbus A320-251N aircraft and three Boeing B737-8 aircraft will further promote the improvement and development of the Company’s route network. Meanwhile, along with the steady and rapid growth in economic well-being, international outbound travel will be further developed. From 2018, the Company will start to introduce the new generation A350-900 and B787-9 long-haul wide-body aircraft and further expand the size of the Company’s wide-body aircraft fleet, to optimize and supplement the long-haul capacity of the Company and fulfil the rising demand for long-haul passenger transportation market. The Company strives to further enhance the operational ability and increase the income level of international long-haul routes, continually optimize the flight experience of travellers through the provision of more relaxing travel services on-board, promote the implementation of international strategies of the Company and further enhance its competitive strength in the international market.

Upon the introduction of 18 aircraft using the proceeds from the Non-public Issuance of A Shares, the Company will expand the size of its aircraft fleet and enhance its transportation capacity. At the same time, the Company will continue to optimize its aircraft fleet structure to adapt to the development plan and purchase plan of aircraft fleet of the Company, which is in compliance with the development direction of the Company in constructing a streamlined and efficient modernized fleet, thereby enhancing the core competence of the Company further.

In 2017, the Company added a total of 573 pilots, among which 327 new captains and 206 new deputy pilots were added. As of the end of 2017, the Company had a total of 7,332 pilots. The annual average flight hours of captains were 867 hours and the annual average flight hours of deputy pilots were 789 hours. The Company has established a corresponding support scheme for human resources based on the future fleet development plan. The number of pilots proposed to be added annually will be able to fulfil the demand of new introduction of aircraft.

The project has been approved by the “Notice Regarding the Scrolling Adjustment Scheme on Air Transport Fleet of China Eastern Airlines Corporation Limited for 2014–2018 (Min Hang Ji Fa [2014] No. 13) 《關於下發中國東方航空股份有限公司2014–2018年運輸機隊規劃滾 動調整方案的通知》(民航計發 [2014]13號) of the CAAC.

— 33 —

Based on the latest release of 2018 product catalogue prices by Boeing Commercial Airplanes and Airbus Group, the catalogue prices of the aircraft to be introduced by the Company are as follows:

The total catalogue prices of the 18 aircraft to be introduced amount to USD2,937 million. The actual consideration, after determined by the contracted parties on an arm’s length basis, is lower than the price contained in the catalogue. The total consideration of the 18 aircraft is approximately USD1,511 million (equivalent to approximately RMB9,670 million)². The Company will use not more than RMB9,021 million of the proceeds from the Non-public Issuance of A Shares in the introduction of the 18 aircraft, and will make up for the shortfall from other channels.

The fundamental parameters of standard configuration of Boeing B737-8, Boeing B787-9, Airbus A320-251N and Airbus A350-900 aircraft are as follows:

Airbus A320-251N series aircraft is the advanced model of the existing A320 series aircraft. It is installed with new efficient engines and equipped with the latest Sharklet of Airbus. Certain structure of the wings and body of the aircraft are optimized. Its flight management system, navigation control system, hydraulic system, power system and air-conditioning system have undertaken necessary changes and adjustment. The high bypass ratio engine LEAP-1A, with characteristics such as turbines made with cutting-edge materials, extremely efficient thermodynamics and composite fan blades, can reduce 15% of fuel consumption and carbon dioxide emission.

— 34 —

The technologically advanced A350-900 aircraft has superb performance in aspects such as materials, engines, pneumatic design and system. 70% of the structure of the body of aircraft are made of new materials, including 53% carbon fibre reinforced polymer and advanced aluminium alloy and titanium alloy, which can reduce the weight of the aircraft, enhance cost-effectiveness of aircraft and minimize maintenance needs. The new TRENT XWB engines are quieter and more efficient. Compared with the aircraft before, various improvements significantly reduce the integrated operation costs, fuel consumption and carbon dioxide emission. Meanwhile, A350-900 aircraft achieves maximum aerodynamic efficiency, reduces resistance and fuel consumption through the improvement of load of the aircraft wings.

A350-900 aircraft can fly 7,026 nautical miles and have large number of seats. The performance of A350-900 aircraft can fulfil the demand of long-haul flight operation and long-haul wide-body aircraft fleet expansion of the Company so as to center at hub markets.

The technologically advanced B787-9 aircraft has superb performance in aspects such as materials, engines, pneumatic design and system. Apart from appearance design such as special design of aircraft nose, new idea of wingtip and vertical tail, the Boeing 787 aircraft provides two choices of engine structure. Engines of 787 aircraft from different manufacturers have the same standard interface, therefore, there is no incompatibility when airlines interchange the engines of aircraft. Cabin pressure is maintained by electrical air compressor where high pressure brought in by engine compressor is not used. The airtight material of the aircraft body has better performance in maintaining cabin humidity than the old passenger aircraft models. Cabin pressure can be pressurized to an air pressure equivalent to 1,800 meters above sea level. The pressurization capacity is enhanced compared to other models that can pressurize air to approximately 2,400 meters above sea level.

B787-9 aircraft can fly 7,230 nautical miles. The performance of B787-9 aircraft can fulfil the demand of long-haul flight operation and long-haul wide-body aircraft fleet expansion of the Company, which is suitable for point-to-point market operation of long-haul routes and effectively supplements hub markets.

Boeing B737-8 aircraft has advanced cockpit display system, lower fuel consumption, more relaxing sky interior and larger load.

— 35 —

The introduction and operation of three Boeing B737-8 aircraft, three Boeing B787-9 aircraft, ten Airbus A320-251N aircraft and two Airbus A350-900 aircraft will be able to enhance the transportation capacity of the Company and transportation volume of major routes and increase flight revenue. Meanwhile, the newly introduced aircraft will replace certain aircraft of old models, which helps to optimize aircraft fleet structure, effectively reduce fuel consumption and maintenance costs, thereby enhancing the profitability and core competence of the Company.

The aircraft proposed to be introduced will be included in the current aircraft fleet of the Company for unified allocation and management. Based on the past operation information of aircraft fleet of the Company, after preliminary estimation, the introduction of 18 aircraft will bring an aggregate revenue of approximately RMB3,327 million to the Company for each complete year.

The Company intends to purchase one A350#1 aircraft simulator, one B787#1 aircraft simulator, one A320#9(NEO) aircraft simulator, one B737MAX#2 aircraft simulator, one B737MAX#3 aircraft simulator, one B737MAX#4 aircraft simulator, four B737 series aircraft simulators and five A320 series aircraft simulators, with RMB996 million of the proceeds from the non-public issuance.

The major suppliers of aircraft simulators include CAE Inc. in Canada, L-3 Company in the United States and Flight Safety Company in the United States, etc. Based on factors such as the price of aircraft simulators purchased by the Company, current aircraft fleet of the Company and the change in market price, it is expected the total consideration for the purchase of 15 aircraft simulators is approximately USD207 million (equivalent to approximately RMB1,327 million)³. The Company intends to use RMB996 million of the proceeds from the Non-public Issuance of A Shares. The implementation of the project will be in line with the aircraft fleet development of the Company, fulfil the rigid demand for aviation training of each model by the Company and the continuous training demand for pilot teams brought about by the business expansion of the Company, reduce the hourly training costs of pilots and provide higher flexibility for pilot training of the Company.

The Company will introduce 70 A320NEO aircraft between 2018 and 2020. Based on the estimation of information in recent years, in average, 20 A320NEO aircraft need to be equipped with one aircraft simulator. The Company will introduce three A320NEO aircraft simulators, with an addition of one aircraft simulator each year from 2016 to 2018, with a view to fulfilling the demand of the Company and third party market. One A320NEO aircraft simulator is proposed to be purchased with the proceeds.

— 36 —

According to the introduction plan of B737MAX aircraft of the Company, 60 aircraft are expected to be delivered from 2018 to 2020 gradually. Based on the estimation of information in recent years, in average, 20 B737MAX aircraft need to be equipped with one aircraft simulator. Three B737MAX aircraft simulators are proposed to be purchased with the proceeds.

Meanwhile, according to the “13th Five Year” development plan and aircraft introduction plan of the Company, 15 B787-9 aircraft and 20 A350-900 aircraft purchased by the Company will start to be delivered from 2018. One B787 aircraft simulator and one A350 aircraft simulator are proposed to be purchased with the proceeds.

According to the aircraft introduction plan of the Company, 88 B737 series aircraft and 71 A320 series aircraft will be net added by the Company from 2018 to 2020 gradually. By the end of the “13th Five Year”, the Company will have 342 B737 series aircraft and 362 A320 series aircraft. The current B737 series and A320 series aircraft simulators in China Eastern Airlines Technology Application Research Center are no longer able to fulfil the demand of flight training of the Company during the “13th Five Year” period. Therefore, to cater for the expansion of aircraft fleet of the Company and fulfil the rigid demand of flight training, the Company intends to introduce four B737 series aircraft simulators and five A320 series aircraft simulators from 2019 to 2020.

The 15 aircraft simulators proposed to be purchased will fulfil the rising training demand of aircraft simulators of each model brought about by the annual expansion of the size of aircraft fleet of the Company, as well as enhance training quality to ensure flight safety.

According to the Order of the Ministry of Transport of the People’s Republic of China (No. 29 [2017]) “Rules on the Examination and Approval of the Operation Certification of Public Air Transportation Carriers of Large Aircraft” (中華人民共和國交通運輸部令（2017年第29號）《大型飛機公共航空運輸承運人運行合格審定規則》 ), airlines are required to provide training for pilots annually, including new-hire training, initial training, transition training, advancement training and revision training, of which flight training in the aircraft simulator is an integral part of the flight training course. The Company has placed emphasis on the development of talents and has set up clear development and training plans for talents. In 2017, the Company has completed 62 themed courses for upgrading the capabilities of flight personnel and nine emergency mission courses such as B737MAX and A320NEO. The Company has promoted bilingual courses in order to satisfy the needs of foreign flight personnel training. Altogether 49,663 people have completed trainings, 980 people dispatched; 205 tranches or 3,620 people have completed the five required trainings in the transportation industry, which are dispatch, information, flight operations, on-the-spot affairs and capabilities.

— 37 —

In recent years, the number of flight personnel of the Company has continued to rise along with the continuous expansion of the size of aircraft fleet. There is rising training demand of flight personnel and aircraft simulator training. In 2017, the annual training hours of aircraft simulators of the Company amounted to approximately 123,159 hours. According to the size of aircraft fleet of the Company and development plan of pilot teams, it is expected that the annual training hours of aircraft simulators of the Company in 2018 will exceed 145,800 hours. The current aircraft simulators of the Company will no longer be able to fulfil the escalating demand of sufficient and flexible pilot training. In addition, the pilot training costs from aircraft simulator training in third party flight training centers will increase significantly.

Therefore, to cater for the development of aircraft fleet of the Company, fulfil the rigid demand of flight training of the Company and the continuous training demand of pilot teams brought about by the business expansion of the Company, as well as to reduce the hourly training costs of pilots, it is necessary for the Company to purchase 15 aircraft simulators to ensure the rising training demand of the Company and provide higher flexibility for pilot training of the Company.

The purchase of 15 aircraft simulators shall not be subject to the special approval of government departments.

The major suppliers of aircraft simulators include CAE Inc. in Canada, L-3 Company in the United States and Flight Safety Company in the United States, etc. Based on factors such as the price of aircraft simulators purchased by the Company, current aircraft fleet of the Company and the change in market price, it is expected the total consideration for the purchase of 15 aircraft simulators is approximately USD207 million (equivalent to approximately RMB1,327 million)⁴. The Company intends to use RMB996 million of the proceeds from the Non-public Issuance of A Shares.

For aircraft simulator training, training in other external training centers, depending on different models of aircraft simulator, costs approximately RMB3,100 to RMB6,300 per hour. Whereas training in aircraft simulators purchased by the Company will effectively reduce the hourly training costs. By estimation, the 15 aircraft simulators proposed to be purchased with the proceeds are expected to save approximately RMB123 million for the Company each year.

— 38 —

The Company intends to use RMB1,783 million of the proceeds from the Non-public Issuance of A Shares to introduce 20 standby engines, including two GEnx-1B(full), two GEnx-1B(core), three Trent XWB-84, eight LEAP-1A26 and five LEAP-1B. The major suppliers of standby engines include GE Company, RR Company and CFM Company, etc. According to the agreements, the total consideration of the purchase of 20 standby engines is approximately USD279 million (equivalent to approximately RMB1,783 million)⁵. The Company intends to pay RMB1,783 million using the proceeds from the non-public issuance.

Maintaining a reasonable amount of standby engines can prevent the effect on the normal operations of the overall aircraft fleet resulting from the malfunction of engines. The use of proceeds in the purchase of standby engines will help to further safeguard the effective operations of the overall aircraft fleet, increase the competitiveness of the Company and the continuously enhance the overall economic efficiency of the Company.

Along with the continuous enlargement of transportation capacity of the Company and the annual expansion of the size of its aircraft fleet, as well as the strong emphasis on the safe and efficient operations by the Company, the Company needs sufficient amount of standby engines to respond to conditions such as engines replacement or maintenance, thereby safeguarding the safe and efficient operations of the Company. According to the aircraft fleet plan of the Company, the Company plans to introduce 70 A320NEO aircraft from 2018 to 2020, 60 B737MAX aircraft from 2017 to 2020, 15 B787-9 aircraft from 2018 to 2021 and 20 A350 aircraft from 2018 to 2022. To safeguard the safe and efficient operations of the four aircraft fleet newly introduced above, effectively prevent the effect on the normal operations of the overall aircraft fleet resulting from the malfunction of engines, the Company intends to introduce eight LEAP-1A, eight LEAP-1B, three GEnx-1B (the supplier will gift one engine for free on top of the three standby engines purchased by the Company) and four TRENT XWB standby engines, of which, the proceeds are proposed to be used to purchase three GEnx-1B (the supplier will gift one engine for free on top of the three standby engines purchased by the Company), three TRENT XWB, eight LEAP-1A26 and five LEAP-1B.

Meanwhile, the major suppliers of standby engines include GE Company, RR Company and CFM Company, etc. Suppliers such as GE Company, RR Company and CFM Company, who have experience to cooperate with the Company, accept the introduction plan of standby engines of the Company and guarantee to have production capacity to deliver the standby engines according to the plan.

— 39 —

The purchase of 20 standby engines shall not be subject to the special approval of government departments.

The major suppliers of standby engines include GE Company, RR Company and CFM Company, etc. Based on the prices of the standby engines purchased by the Company, the prices of standby engines to be purchased by the Company are as follows:

Note: The exchange rate of USD1 to RMB6.4 is used to calculate the above RMB amount.

The total catalogue prices of the 20 standby engines to be introduced amount to USD342 million. The actual price, after determined by the contracted parties on an arm’s length basis, is lower than the price contained in the catalogue. The total consideration of the 20 standby engines is approximately USD279 million (equivalent to approximately RMB1,783 million)⁶. The Company will use not more than RMB1,783 million of the proceeds from the Non-public Issuance of A Shares in the purchase of 20 standby engines, and will make up for the shortfall from other channels.

The project does not bring direct revenue. Under the circumstances of growing transportation capacity and development of the Company, the purchase of 20 standby engines will safeguard the safe flight of aircraft and the safe operations of the Company, which is beneficial to the sound and normal operations of the overall aircraft fleet of the Company.

— 40 —

The introduction of quality strategic partners and funding necessary for development not only helps to optimize the shareholding structure of the Company, improve management level and enhance the Company’s ability in sustainable development, and is also of positive significance for the Company to respond to the “Yangtze River Economic Zone Strategy” of the State, the construction of “Five Centers” and the establishment of “Four Brands” in Shanghai, actively establish the Shanghai core hub, optimize and improve the structure of flight network and further enhance its influence in Shanghai and even in the Yangtze River Delta and the PRC air transportation market.

The proceeds from the Non-public Issuance of A Shares will be used for the introduction of 18 aircraft, purchase of 15 aircraft simulators and purchase of 20 standby engines, which will expand the size of aircraft fleet and optimize the structure of aircraft fleet, enhance the air transportation capacity and the safety security of the Company, fulfil the rising training demand of the Company, safeguard the stable commencement of business of the Company and promote the successful implementation of strategies of the Company. The use of proceeds from the Non-public Issuance of A Shares will help to strengthen, improve and expand the core businesses of the Company, enhance the core competence of the Company, improve its brand image, enlarge its market share, maintain and increase the profit level of the Company, maintain the sustainable development of the Company, strengthen and improve industry position and bring better investment return for investors.

As of 31 March 2018, the Company had total assets of RMB227,472 million and total liabilities of RMB168,502 million, with a gearing ratio of 74.08% in the combined statement. Upon the completion of the Non-public Issuance of A Shares, total assets and total liabilities of the Company will increase simultaneously and the gearing ratio will decrease and its solvency position will be enhanced, which will help to enhance the Company’s ability in resisting financial risks.

The gross proceeds from the Non-public Issuance of A Shares shall not be more than RMB11,800 million (RMB11,800 million inclusive). As of 31 March 2018, shareholders’ equity attributable to the parent company of the Company amounted to RMB55,383 million. Upon the completion of the Non-public Issuance of A Shares, shareholders’ equity attributable to the parent company of the Company will further increase, the capital strengths of the Company will be enhanced and its capital structure will be optimized, laying a solid foundation for the expansion of the size of aircraft fleet of the Company, optimization of aircraft fleet, fulfilment of rising training demand, enhancement of aircraft fleet quality and safe operation level, increase of market share and business scale.

— 41 —

To further strengthen, improve and expand the core businesses of the Company, enhance the core competence of the Company, improve the capital structure of the Company, maintain the sustainable development of the Company, strengthen and improve its industry position and provide better investment return for investors, the Company intends to use the proceeds from the Non-public Issuance of A Shares for the introduction of 18 aircraft, purchase of 15 aircraft simulators and purchase of 20 standby engines.

The investment projects of proceeds are in compliance with relevant industry policies of the State and are in line with the overall strategic development of the Company. The investment projects have good market development prospects and high economic efficiency and the use of proceeds are reasonable and practicable. The implementation of the investment projects of proceeds will introduce funds for subsequent development of the Company, so as to enlarge the size of aircraft fleet and increase the amount of other equipment. The implementation of the projects will enable the Company to enhance its air transportation capacity, increase existing flights and introduce new routes to expand the size of the aircraft fleet reasonably, as well as enable the Company to expand its route network layout, provide more efficient and quality travel services, which will increase the profit level and return on net assets of the Company in the long run.

The completion of the projects will help to promote the development of the principal operations of the Company, further enhance the market influence of the Company, increase its profitability, lay a strong foundation for the continuous expansion of market share and influence of the Company, further enhance the core competence of the Company and continually strengthen its competitive edge in the industry, which are in the interests of the Company and all Shareholders.

— 42 —

Pursuant to the “Approval of Non-public Issue of Shares by China Eastern Airlines Corporation Limited” (Zheng Jian Xu Ke [2013] No. 297) (證監許可[2013]297號文《關於核准中國東方航空股份有限公司非公開發行股票的批覆》 ) issued by the China Securities Regulatory Commission, China Eastern Airlines Corporation Limited (“CEA” or the “Company”) issued 698,865,000 RMB-denominated ordinary shares (A Shares) at an issue price of RMB3.28 per share by way of non-public issue on 16 April 2013. Total proceeds from this issuance amounted to RMB2,292,277,200.00 (the “First Proceeds in 2013”).

Pursuant to the “Approval of Additional Issue of Overseas Listed Foreign Shares by China Eastern Airlines Corporation Limited” (Zheng Jian Xu Ke [2013] No. 104) (證監許可[2013]104號文《關於核准中國東方航空股份有限公司增發境外上市外資股的批覆》 ) issued by the China Securities Regulatory Commission, the Company completed the additional issue of 698,865,000 overseas listed foreign shares (H Shares) to CES Global Holdings (Hong Kong) Limited (東航國際控股(香港 )有限公 司 ) at an issue price of HK$2.32 per share in June 2013. Total proceeds from this issuance amounted to HK$1,621,366,800.00 (equivalent to RMB1,289,473,016.04 at the middle price of the exchange rate of HK$1 to RMB0.7953 as announced by the State Administration of Foreign Exchange on the capital injection date) (the “Second Proceeds in 2013”).

Pursuant to the “Approval of Additional Issue of Overseas Listed Foreign Shares by China Eastern Airlines Corporation Limited” (Zheng Jian Xu Ke [2015] No. 1748) (證監許可[2015]1748號文《關於核准中國東方航空股份有限公司增發境外上市外資股的批覆》 ) issued by the China Securities Regulatory Commission, the Company completed the issue of 465,910,000 ordinary H Shares to Delta Air Lines, Inc. at an issue price of HK$7.49 per share of par value RMB1 each on 9 September 2015. Total proceeds from this issuance amounted to HK$3,488,895,000.00 (equivalent to RMB2,864,278,128.15 at the middle price of the exchange rate of HK$1 to RMB0.82097 as announced by the State Administration of Foreign Exchange on the capital injection date) (the “Proceeds in 2015”).

Pursuant to the “Approval of Non-public Issue of Shares by China Eastern Airlines Corporation Limited” (Zheng Jian Xu Ke [2016] No. 8) (證監許可[2016]8號文《關於核准中國東方航空股份有限公司非公開發行股票的批覆》 ) issued by the China Securities Regulatory Commission, the Company issued 1,327,406,822 RMB-denominated ordinary shares (A Shares) at an issue price of RMB6.44 per share by way of non-public issue on 27 June 2016. Total proceeds from this issuance amounted to RMB8,548,499,933.68 (the “Proceeds in 2016”).

— 43 —

Pursuant to the “Rules Governing the Utilization Report on the Use of Proceeds from Previous Fund Raising Activities” (Zheng Jian Fa Xing Zi [2007] No. 500) 《( 關於前次募集資金使用情况報告的規定》（證監發行字 [2007]500號）), the use of proceeds from previous fund raising activities of the Company as of 31 March 2018 is reported as follows:

In April 2013, the total number of non-public issued A Shares of CEA was 698,865,000, of which China Eastern Air Holding Company, its controlling shareholder, subscribed for 241,547,927 shares with a subscription amount of RMB792,277,200.56; and CES Finance Holding Co., Ltd. (東航金戎控股有限責任公司) subscribed for 457,317,073 shares with a subscription amount of RMB1,499,999,999.44. The total subscription amount was RMB2,292,277,200.00.

After the deduction of sponsor fee, underwriting fee and other issuance expenses, the actual amount of net proceeds amounted to RMB2,286,181,841.80. The said proceeds were deposited into the special account opened by the Company for the proceeds in full amount on 12 April 2013 and verified by the “Capital Verification Report in Relation to the Changes in Registered Capital and Equity of China Eastern Airlines Corporation Limited” (Hu Zhong Hui Yan Zi (2013) No. 3741) (滬眾會驗字(2013)第3741號《中國東方航空股份有限公司註冊資本及股本變更的驗資報告》 ) issued by Shanghai Zhonghua Huyin Certified Public Accountants Co., Ltd. (上海眾華滬銀會計師事務所有限公司).

The Company completed the additional issue of 698,865,000 overseas listed foreign shares (H Shares) to CES Global Holdings (Hong Kong) Limited (東航國際控股（香港）有限公司) at an issue price of HK$2.32 per share in June 2013. Total proceeds from this issuance amounted to HK$1,621,366,800.00 (equivalent to RMB1,289,473,016.04 at the middle price of the exchange rate of HK$1 to RMB0.7953 as announced by the State Administration of Foreign Exchange on the capital injection date). After the deduction of sponsor fee, underwriting fee and other issuance expenses, the actual amount of net proceeds amounted to RMB1,286,209,317.64. The said proceeds were deposited into the special account opened by the Company for the proceeds in full amount on 20 June 2013 and verified by the capital verification report (Hu Zhong Hui Yan Zi (2013) No. 4737) (滬眾會驗字(2013)第4737號) issued by Shanghai Zhonghua Huyin Certified Public Accountants Co., Ltd. (上海眾華滬銀會計師事務所有限公司).

— 44 —

The Company completed the additional issue of 465,910,000 overseas listed foreign shares (H Shares) to Delta Air Lines, Inc. at an issue price of HK$7.49 per share on 27 July 2015. Total proceeds from this issuance amounted to HK$3,488,895,000.00 (equivalent to RMB2,864,278,128.15 at the middle price of the exchange rate of HK$1 to RMB0.82097 as announced by the State Administration of Foreign Exchange on the capital injection date). After the deduction of sponsor fee, underwriting fee and other issuance expenses, the actual amount of net proceeds amounted to RMB2,854,890,041.65. The said proceeds were deposited into the special foreign exchange account opened by the Company in full amount on 9 September 2015 and verified by the capital verification report (Ernst & Young Hua Ming (2015) Yan Zi No. 61056687_B01) (安永華明(2015)驗字第61056687_B01號) issued by Ernst & Young Hua Ming LLP. Shanghai Branch (安永華明會計師事務所（特殊普通合夥）上海分所).

On 27 June 2016, the total number of non-public issued A Shares of CEA was 1,327,406,822, of which Shanghai Licheng Information Technology Consulting Co., Ltd. (上海勵程信息技術諮詢有限公司) subscribed for 465,838,509 shares with a subscription amount of RMB2,999,999,997.96; China National Aviation Fuel Holding Company (中國航空油料集團公司) subscribed for 465,838,509 shares with a subscription amount of RMB2,999,999,997.96; China COSCO Shipping Corporation Limited (中國遠洋海運集團有限 公 司 ) subscribed for 232,919,254 shares with a subscription amount of RMB1,499,999,995.76; and Caitong Fund Management Co., Ltd. (財通基金管理有限公司) subscribed for 162,810,550 shares with a subscription amount of RMB1,048,499,942.00. The total subscription amount was RMB8,548,499,933.68.

After the deduction of sponsor fee, underwriting fee and other issuance expenses, the actual amount of net proceeds amounted to RMB8,539,974,533.71. The said proceeds were deposited into the special account opened by the Company for the proceeds in full amount on 27 June 2016 and verified by the capital verification report (Ernst & Young Hua Ming (2016) Yan Zi No. 61056687_B02) (安永華明(2016)驗字第61056687_B02號) issued by Ernst & Young Hua Ming LLP. (安永華明會計師事務所（特殊普通合夥）).

On 12 April 2013, after the deduction of other issuance expenses, the initial deposit amount of proceeds from the issue of ordinary A Shares of the Company in the special account amounted to RMB2,286,181,841.80.

The said proceeds were deposited into the special account opened by the Company in Shanghai Changning Sub-branch of Bank of Communications Co., Ltd. (account number: 310066629018170222162). As of 31 March 2018, the said special account for the proceeds has been cancelled.

— 45 —

On 20 June 2013, after the deduction of other issuance expenses, the initial deposit amount of proceeds from the issue of ordinary H Shares of the Company in the special account amounted to RMB1,286,209,317.64.

The said proceeds were deposited into the special accounts opened by the Company in Hong Kong Branch of Bank of Communications Co., Ltd. (accounts number: 02753220090309 and 02753220112924). As of 31 March 2018, the said special accounts for the proceeds have been cancelled.

On 9 September 2015, after the deduction of other issuance expenses, the initial deposit amount of proceeds from the issue of ordinary H Shares of the Company in the special account amounted to RMB2,854,890,041.65.

The said proceeds were deposited into the special foreign exchange account opened by the Company in Hong Kong Branch of Citibank, N.A. (account number: 1-247366-004). As of 31 March 2018, the said special account for the proceeds has been cancelled.

On 27 June 2016, after the deduction of other issuance expenses, the initial deposit amount of proceeds from the issue of ordinary A Shares of the Company in the special account amounted to RMB8,539,974,533.71.

The said proceeds were deposited into the special accounts opened by the Company in Shanghai Liyuan Sub-branch of China Minsheng Banking Corporation Limited (account number: 696631600) and Shanghai Gubei Sub-branch of China CITIC Bank Corporation Limited (account number: 8110201013900218746), respectively. As of 31 March 2018, the said special account for the proceeds has been cancelled.

Details of the actual usage of proceeds from previous fund raising activities are set out in Annex 1 “Reference Table of the Usage of Proceeds from Previous Fund Raising Activities”.

N/A.

— 46 —

Upon review and approval at the second meeting of the eighth session of the Board of China Eastern Airlines Corporation Limited held on 4 July 2016, during the period from 23 April 2015 to 31 May 2016, the Company initially invested its self-raised funds to purchase 28 aircraft and repay loans from financial institutions in a total amount of RMB13,134,183,900. Details of the utilization are set out in Annex 3 “Initial Investment in Projects in Relation to Proceeds from Issue of A Shares with Self-raised Funds — Proceeds in 2016”. The report on the initial investment in the above projects with self-raised funds was verified by Ernst & Young Hua Ming LLP., which issued the special verification report (Ernst & Young Hua Ming (2016) Zhuan Zi No. 61056687_B38) (安永華明(2016)專字第 61056687_B38 號 ). The independent directors of the Company have given their consent to the initial investment and replacement of the projects invested with such proceeds.

The Company does not have any temporary replenishment of liquidity by idle proceeds.

On 31 March 2018, the Company’s investment on projects invested with proceeds from issue    of ordinary A Shares and H Shares were completed. The special accounts for the proceeds have been cancelled.

Details of the benefits realized from projects invested with proceeds from previous fund raising activities are set out in Annex 2 “Reference Table of the Benefits Realized from Projects Invested with Proceeds from Previous Fund Raising Activities”.

Details of the circumstances when benefits realized from projects invested with proceeds from previous fund raising activities cannot be individually assessed are set out in Annex 2 “Reference Table of the Benefits Realized from Projects Invested with Proceeds from Previous Fund Raising Activities”.

N/A.

— 47 —

N/A.

N/A.

The Company compared the actual usage of proceeds from previous fund raising activities as of 31 March 2018 disclosed in this report with the relevant information disclosed in periodic reports of the Company, and there are no discrepancies in the information disclosed in relation to proceeds from previous fund raising activities.

The Board considered that the Company utilized the proceeds from previous fund raising activities according to the specified use of proceeds. The Company fulfilled its obligation of disclosure in accordance with the “Rules Governing the Utilization Report on the Use of Proceeds from Previous Fund Raising Activities” (Zheng Jian Fa Xing Zi [2007] No. 500) 《( 關於前次募集資金使用情况報告的規定》（證監 發行字[2007]500號）) with respect to the investment and progress of proceeds from previous fund raising activities.

All Directors of the Company undertake that there are no misrepresentations, misleading statements or material omissions in this report and they are jointly and severally liable for the authenticity, accuracy and completeness of the information contained in this report.

The Board of China Eastern Airlines Corporation Limited

10 July 2018

— 48 —

Annex 1: Reference Table of the Usage of Proceeds from Previous Fund Raising Activities as of 31 March 2018 – First Proceeds in 2013

— 49 —

Annex 1: Reference Table of the Usage of Proceeds from Previous Fund Raising Activities as of 31 March 2018 – Second Proceeds in 2013

— 50 —

Annex 1: Reference Table of the Usage of Proceeds from Previous Fund Raising Activities as of 31 March 2018 – Proceeds in 2015

— 51 —

Annex 1: Reference Table of the Usage of Proceeds from Previous Fund Raising Activities as of 31 March 2018 – Proceeds in 2016

— 52 —

Annex 2: Reference Table of the Benefits Realized from Projects Invested with Proceeds from Previous Fund Raising Activities as of 31 March 2018 – First Proceeds in 2013

Annex 2: Reference Table of the Benefits Realized from Projects Invested with Proceeds from Previous Fund Raising Activities as of 31 March 2018 – Second Proceeds in 2013

— 53 —

Annex 2: Reference Table of the Benefits Realized from Projects Invested with Proceeds from Previous Fund Raising Activities as of 31 March 2018 – Proceeds in 2015