HNA Group makes US$65 million investment in Chang An Airlines
The capital injection will help Chang An Airlines lower its asset-liability ratio while bolstering its regional and operational competitiveness.
The HNA Group will inject an additional of RMB400 million (approx: US$65 million) into Chang An Airlines, boosting the carrier’s total registered capital to RMB2.818 billion (approx: US$455 million). At the rate of 1.68 yuan per share the capital injection lifts HNA Group’s holding of Chang An to 16.69%, vis-à-vis 61.43% held by Hainan Airlines and 21.88% held by Beijing Hongrui Chengda Trading.
The capital injection will help Chang An Airlines lower its asset-liability ratio and add to its financial coffers while bolstering its regional and operational competitiveness.
A subsidiary of Hainan Airlines, Chang An Airlines’ operates domestic passenger and cargo air transport service from Shaanxi province. Its services also extend to motor vehicle transport, airline catering, tourism, real estate and export/import of technology and products via directly managed and commissioned service providers.。
Chang An Airlines had gross assets worth RMB8.923 billion (approx: US$1.44 billion), net assets of RMB3.8 billion (approx: US$614 million) and achieved net profits of RMB148 million (approx: US$24 million), according to the audit report dated December 31, 2004.(Translation by David)