HNA Holding cuts loss by 89.8% amid buying spree
HNA Holding reduced annual loss by 89.8% last year while actively exploring overseas investment opportunities.
Hong Kong-listed HNA Holding, a fully-controlled subsidiary of conglomerate HNA Group, recorded loss attributable to the owners at HK$ 21.9 million in 2016 with a significant decrease of 89.8% compared with HK$ 213.8 million of last year.
Total revenue from continuing operations was HK$ 182.5 million in 2016, representing an increase of HK$ 20.5 million (12.7%) compared with HK$ 162.0 million (as restated) in 2015.
The company was continuing to spin off its two loss-making businesses in 2016. It has completed two significant acquisitions in 2016, namely the London Property Project and the US Golf Course Project. The London Property Project is strategically situated in Canary Wharf estate in a waterside position and is an ideal investment target.
Meanwhile, the Group actively explored overseas investment opportunities in golf courses and acquired 8 golf courses in the Washington State, the United States with a total of 180 golf holes as well as clubs and numerous facilities, in an effort to enhance the tourism/recreation business.
HNA Holding claimed that "With sufficient cash on hand as well as available banking facilities, the Group’s liquidity position remains strong to satisfy its capital commitments and working capital requirements."
Even with plain disclosure, parent HNA Group's corporate structure proves difficult to comprehend:
"As at 31 December 2016, HNA Group is a company established in the PRC with limited liability which owns approximately 91.01% of HNA Group (International) and directly owns 100% of HNA Holding Group Co., Ltd.* (海航實業集團有限公司), which in turn directly owns 100% of HNA Investment Holding Co., Ltd.* (海航投資控股有限公司), which in turn directly owns 100% of Beijing HNA Financial Holdings Co., Ltd.* (北京海航金融控股有限公司), which in turn owns 100% of HNA Financial Holdings International Co., Ltd. (海航金控國際有限公司). HNA Financial Holdings International Co., Ltd. (海航金控國際有限公司) directly owns 100% of Hong Kong HNA. HNA Group was held as to 70% by Hainan Traffic Administration Holding Co. Ltd.* (海南交管控股有限公司), which was in turn held as to 50% by Tang Dynasty Development (Yangpu) Company Limited* (盛唐發展(洋浦)有限公司). Tang Dynasty Development (Yangpu) Company Limited* (盛唐發展(洋浦)有限公司) was held as to 65% by Hainan Province Cihang Foundation* (海南省慈航公益基金會) (the “Foundation”). The committee members of the Foundation should be jointly nominated by the business supervising unit (業務主管單位) (being the Office of Civil Affairs of the Hainan Province (海南省民政廳)), the committee (理事會), the sponsor (發起人) and the major donor (主要捐贈人) of the Foundation."