Embattled Chinese conglomerate HNA Group will "win the war against the liquidity problem" in 2020, its chairman has claimed in a year-end post to employees after spending two years trying to bounce back from an international spending spree that left the company unable to pay wages on time.
The Hainan province-based company spent this year restructuring and optimizing operations under guidance from the government and Communist Party of China to reduce costs, Chen Feng said in the post on WeChat, commending staff for their effort and loyalty during such turbulent times.
HNA Group racked up debts of CNY752 billion (USD108 billion) buying global assets across 44 market segments in 12 sectors in 2016 and 2017, and wound up defaulting on more than CNY191 billion in bonds.
It shifted CNY300 billion worth of assets last year, and has sold equity and real estate in London, Hong Kong and Beijing throughout 2019. The company lost CNY3.5 billion (USD502 million) in the first half of this year, cutting its defect by 15 percent but still holding nearly CNY707 billion in liabilities, according to its financial report.
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