HNA media subsidiary XF Media listed on the third board
Hainan Airlines’ subsidiary Hainan Xinsheng Feixiang Culture Media Co is the first inflight media and inflight integrated sales company to list on the “third board”.
Hainan Airlines’ subsidiary Hainan Xinsheng Feixiang Culture Media Co has been listed on the National Equities Exchange and Quotations, also known as the “third board”, with stock number 832297. It is the first inflight media and inflight integrated sales company to list on the “third board”.
Xinsheng Feixiang Culture was registered in Haikou in 2010 with RMB330 million capital, offering inflight broadcasting and vertically integrated inflight retail service. It is currently the sole media and channel resource supplier for a number of airlines including Hainan Airlines, Tianjin Airlines, Lucky Air and West Air. It partners with a range of companies and clients to operate media services, customized corporate gifts and loyalty points. Its client portfolio includes major companies like Tencent, Yili, Jiaduobao, ICBC, P&G and China Telecom.
In November 2011, Hainan Airlines announced it acquired 30.30% equity in Xinsheng Feixiang Culture Media with a cash capital injection of RMB100 million, at RMB1 per share. Hainan Airlines and its subsidiary Yunnan Lucky Air also signed a 10-year franchise agreement with Xinsheng Feixiang as the sole provider of media products to the two airlines.
After this transaction, the ownership of Xinsheng Feixiang Cutlure Media is split among Hainan Airlines, Hainan Aircraft Leasing, HNA Group and Hainan Air Commercial at the ratio of 30.30%，60.61%，8.48% and 0.61% respectively.
Xinsheng Feixiang Media president said that the company would leverage the listing on the third board to develop an innovative online-style business model and make use of the advantage of the inflight platforms to establish a marketing ecosystem that organically integrates high-end clients, marketing channels and brand communication. “This will enhance our core competitiveness and make us a fully integrated specialist inflight media brand,” he said.
As of March 31 2014, Xinsheng Feixiang Culture Media has net assets of RMB235.59 million, revenue of RMB40.6798 million and net profit of RMB4.2185 million.(Translation by David)