Who is the future destiny of the joint working group in HNA?

category:Finance
 Who is the future destiny of the joint working group in HNA?


This list is the same as none of the previous ones circulated in the market.

From the perspective of the composition and background of the working group, it can be described as a great effort.

Hainan Development Holding Co., Ltd. is a comprehensive investment holding company established by Hainan Provincial Government in order to introduce large projects, promote the investment of funds outside Hainan Province, promote the implementation of major projects in Hainan Province, and promote the economic development of Hainan Province. In addition to its huge industrial platform, the company also plays an important role in attracting investment in Hainan.

According to its official website, Hainan Development Holdings has successively carried out a series of cooperation with CCCC, China Merchants Group, Xiamen international trade, etc., to complete the settlement under the first import and export trade of Hainans FT account; promote the construction of Boao Lecheng medical tourism area and Sanya deep sea science and Technology City; apply to the insurance company, which will meet the diversified insurance demand for the construction of Hainan free trade area (port).

Gu Gang, chairman of Hainan Development Holding Co., Ltd., as the group leader, believes that he also takes a fancy to the advantages of this state-owned enterprise in introducing capital and industrial restructuring.

In addition, according to the information released by HNA Group, after deliberation by the shareholders meeting of HNA Group on February 28, 2020 and the board of directors of HNA Group on February 29, 2020, some directors were re elected, including Chen Feng, Gu Gang, Li Xianhua, Tan Xiangdong, Ren Qinghua, Chen Xiaofeng and he Jiafu.

Five of the seven members of the board are HNA people and two are members of the working group. Industry insiders have commented that there are several unchanged - Chen Feng continues to hold the helm, HNAs identity as a private enterprise remains unchanged, and the main industry of aviation remains unchanged.

Prior to this, HNA had already set up a working group. The insiders said: the former working group was essentially the role of HNA debt coordination, in fact, it was mainly composed of creditors. Now the working group is stationed to prevent the aviation safety caused by HNA debt crisis.

Despite novel coronavirus pneumonia outbreak in the early years, HNAs liquidity risk has been aggravated, especially in the aviation business, despite the fact that HNA has been selling assets to ease liquidity pressure for two years.

The data shows that the year-on-year growth rate of ask, RPK (passenger turnover) and passenger rate of HNA in January is - 21.2%, 29.9% and - 3.2% respectively, all of which are at the end of the six major airlines. The announcement of main operation data of HNA holding, the listed platform of HNAs business in January, also shows that the companys monthly carrying capacity, carrying capacity and carrying rate and other operation data have declined.

In fact, HNAs capital pressure has long been reflected in its aviation and aviation leasing business.

In addition to the performance of HNA holding has been affected. In 2019, by transferring 48% of the shares of Tianjin airlines, the holding subsidiary, it gained about 2.2 billion yuan of income, which turned the loss into profit. In addition, HNA is also selling its aircraft to ease the financial pressure.

After the completion of the transaction, avolon will still provide management services for the above-mentioned 21 aircraft, and charge 1.5% of the rent receivable of the leased assets of the management aircraft, plus 1.5% of the paid in rent as the service fee. Avolon will also charge 1.25% of the paid in rent as the asset management fee, and will charge a commission of 1.5% of the disposal price of each aircraft when disposing the aircraft.

In 2018 and 2019, HNA sold aircraft. In the first half of 2019 alone, HNA holdings disposed of 20 aircraft.

According to the data, HNA Group has 16 participating airlines, 16 operation management and cooperative transport airports, with a fleet size of more than 900; more than 2000 domestic and foreign routes, 225 navigable cities, and an annual passenger traffic volume of more than 120 million.

In addition to the main business of aviation, HNA has been contracting other businesses since the crisis. In 2018 alone, HNA disposed of 300 billion yuan of assets. Chen Feng once said that HNA was still in trouble, but had passed the dangerous period, but even so, HNA still had private defaults, arrears of wages and other situations.

With more than 700 billion liabilities, HNA is hard to turn around. In 2020, Chen Feng plans to reduce HNAs debt ratio to less than 70% and its total assets will not exceed 700 billion. With the presence of the working group, HNAs future destiny