HNA Group

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HNA Group
Private
Industry Aviation, tourism, financial services, real estate, logistics
Founded 2000
Headquarters HNA Building, Haikou, China
Key people
  • Chen Feng (senior chairman)
  • Wang Jian (chairman)
  • Li Xianhua (executive chairman)
  • Tan Xiangdong (vice-chairman & CEO)
Revenue Increase CN¥100.941 billion (2015)
Decrease CN¥2.366 billion (2015)
Profit Increase CN¥806 million (2015)
Total assets Increase CN¥468.709 billion (2015)
Total equity Increase CN¥22.514 billion (2015)
Owner
  • Hainan Traffic Administration Holding (70%)
  • Jianyun Investments (30%)
Parent
  • Hainan Traffic Administration Holding (direct)
  • Hainan Province Cihang Foundation (ultimate)
Website www.hnagroup.com
Footnotes / references
in a consolidated basis; equity and profit excluded minority interests; in Chinese Accounting Standards[1]
HNA Group Co., Ltd.
Simplified Chinese 海航集团有限公司
Traditional Chinese 海航集團有限公司
HNA Group
Simplified Chinese 海航集团
Traditional Chinese 海航集團

HNA Group Co., Ltd., is a Chinese conglomerate headquartered in Haikou, Hainan, China. Founded in 2000, it is involved in the aviation, real estate, financial services, tourism, logistics, and other industries.[2] It is part owner of Grand China Air (Hainan Airlines), China's fourth largest airline, and owns 25% of Hilton Worldwide.

HNA Group was ranked 170th in 2017 Fortune Global 500 list.[3]

History[edit]

HNA Building, Haikou, Hainan is headquarters of HNA Group

In 1993, Chen Feng established Hainan Airlines on behalf of the Hainan Provincial People's Government. Following a restructuring of the airline in 1997, Feng founded HNA Group, Co., Ltd. as the parent company of Hainan Airlines in January 2000.[4][5][6] Following the CAAC's creation of three major airline groups in early 2000s, HNA Group took control of China Xinhua Airlines, Chang An Airlines, and Shanxi Airlines to remain competitive.[7][8]

Since then, the group has undergone great diversification, entering multiple industries such as tourism and logistics. It has also significantly expanded its involvement with both national and international companies. These include several airlines, NH Hotel Group,[9] Uber,[10] and an office tower and a hotel in New York City. HNA Group has spent more than US$3 billion on foreign acquisitions. It intends to be one of the top 50 companies in the world by 2030.[11]

On February 18, 2016, HNA Group was reported to reach an agreement with Ingram Micro Inc, a California-based technology distributor for $6 billion, in the largest Chinese takeover of a US information technology company. HNA Group was then advised by China International Capital Corporation in the transaction.[12]

In July 2017, the company was targeted by the Central Government in a set of new measures that prohibit state-owned banks from lending money to Chinese private companies to curb their foreign investment activities.[13] Several banks associated with HNA's foreign investments halted new loans since, though some had already suspended their grants before the measures were signed into effect.[14]

Entities[edit]

HNA Group is composed of five core industries: HNA Aviation, HNA Holdings, HNA Capital, HNA Tourism, and HNA Logistics.

HNA Aviation[edit]

HNA Aviation has a stake in Hainan Airlines via Grand China Air

HNA Aviation is affiliated with multiple Chinese airlines. These include the following:[4][8][15][16][17]

The group also has stakes in some carriers based outside China, including Africa World Airlines, Aigle Azur (48%),[18] Azul Brazilian Airlines (23.7%),[19] Comair (6.2%),[20] MyCargo Airlines [21], TAP Portugal (2.5%) and a pending stake in Virgin Australia (13%).[22]

On 18 January 2016, HNA Aviation formed the world's first alliance of low-cost carriers, U-FLY Alliance. While the founding members of the alliance—HK Express, Lucky Air, Urumqi Air, and West Air—are all affiliated with HNA Aviation, the alliance is also open to airlines not within HNA Group.[23]

Other entities[edit]

HNA Holdings is involved in real estate and the retailing industry.[24] Subgroup HNA Airport Group operates 16 airports across China, including the airports in Haikou, Sanya, Weifang, Dongying, Yichang, Anqing, and Yingkou.[4][25]

HNA Capital deals with financial services and investment banking. It has over 30 member companies,[26] such as Bohai Trust.

HNA Tourism is involved in the tourism industry. Subgroup HNA Hospitality Group operates several resorts, business hotels, boutique hotels, and the Tangla hotel chain.[27]

HNA Logistics is engaged with shipbuilding, marine cargo transport, air cargo, and other elements of logistics.[4][28]

Subsidiaries[edit]


Equity investments[edit]

As of 31 December 2015

Shareholders[edit]

The shares of HNA Group were owned by two companies directly: Hainan Jiaoguan Holding (Chinese: 海南交管控股; pinyin: Hǎinán jiāoguǎn kònggǔ; literally: "Hainan Traffic Administration Holding") for 70% and Yangpu Jianyun Investments (Chinese: 洋浦建运投资) for 30%. Two companies originally were incorporated by Chinese state-owned enterprises, such as Hainan Airport.[33]

Hainan Traffic Administration Holding was 50% owned by Tang Dynasty Development (Yangpu) (Chinese: 盛唐发展(洋浦)), 25% by Yangpu Hengsheng Chuangye (Chinese: 洋浦恒升创业) and 18.21% by Yangpu Zhongxin Airlines Holding (Chinese: 洋浦中新航空实业) and 6.78% by Hainan Xinhuading Trading (Chinese: 海南炘华鼎贸易) as of March 2017.[34]

Tang Dynasty Development (Yangpu) was 65% owned by Hainan Province Cihang Charity Foundation (Chinese: 海南省慈航公益基金会)[35] and 35% by Hong Kong incorporated company Tang Dynasty Development (simplified Chinese: 盛唐发展; traditional Chinese: 盛唐發展).

Tang Dynasty Development was 98% owned by Caymans-incorporated Pan-American Aviation Holding and 2% owned by Hainan Airlines.

Pan-American Aviation Holding was 100% owned by Guan Jun as of 2016 (Chinese: 貫君; pinyin: Guàn Jūn, acquired from Bharat Bhisé in 2016).[36][30][35]

Yangpu Hengsheng Chuangye was owned by HK incorporated company Headstreams Investment (simplified Chinese: 千江源投资; traditional Chinese: 千江源投資), which was 98% owned by Bharat Bhisé and 2% by R.J. Conrads in 2004.[33] As in 2015 Bhisé still owned 98% of Headstreams Investment,[37] while the 2% stake of Headstreams was owned by Caymans-incorporated HAC (RAC), Limited as in 2011.[38] In 2016, Bhisé also transferred the stake of Headstreams to Jun Guan.[39]

Yangpu Jianyun Investments and Yangpu Zhongxin Airlines Holding were owned by The Committee of Hainan Airlines Trade Union (Chinese: 海南航空股份有限公司工会委员会).[29] However, all the stake owned by the union, were transferred in 2016. According to the record in the National Credit Information Publicity System, part of the stake (6.78%) of Hainan Traffic Administration Holding held by Zhongxin Airlines Holding was transferred to newly established company Xinhuading.[40] While Jianyun Investments was now owned by HNA Group directors Chen Feng (Chinese: 陈峰, 35.05%), Wang Jian (Chinese: 王健, 35.05%), Chen Wenli (Chinese: 陈文理, 9.23%), Tan Xiangdong (Chinese: 谭向东, 6.89%), Li Jing (Chinese: 李箐, 6.89%) and Li Xianhua (Chinese: 李先华, 6.89%).[40][35] For Zhongxin Airlines Holding, the owners also became the 6 shareholders of Jianyun Investments with the same ratio;[40][35] for newly established Xinhuading, the shareholders were 4 more HNA Group directors Lu Ying (Chinese: 逯鹰), Zhang Ling (Chinese: 张岭) Huang Gan (Chinese: 黄玕) and Huang Qijun (Chinese: 黄琪珺).[40]

After much speculation on his identity, Guan Jun, by-then the indirect second largest shareholder of HNA Group (who acquired the stake from Bharat Bhisé), donated the stake to a private foundation Hainan Cihang Charity Foundation, Inc. in 2017.[41]

References[edit]

  1. ^ "2016年第二期海航集团有限公司可续期公司债券发行文件" [Pospectus of 2016 (batch 2) renewable bonds of HNA Group]. HNA Group (in Chinese). chinabond.com.cn. 15 August 2016. Retrieved 19 November 2016. 
  2. ^ "Company Overview of HNA Group Co., Ltd.". Bloomberg Business. Retrieved 11 February 2016.
  3. ^ http://beta.fortune.com/global500/hna-group
  4. ^ a b c d "HNA Group on the acquisition trail". CAPA - Centre for Aviation. 11 August 2011. Retrieved 11 February 2016.
  5. ^ "Biography of Chen Feng". The Wharton Global Alumni Forum: June 12–13, 2009 | Beijing. Retrieved 11 February 2016.
  6. ^ "HNA Chairman Chen Feng’s Growth Strategy: Go Global in the Downturn". Knowledge@Wharton. 27 February 2013. Retrieved 11 February 2016.
  7. ^ Minhua, Ji and Gong, Liu (10 July 2007). "Hainan Airlines to Form Aviation Conglomerate". Caijing.com.cn. Retrieved 11 February 2016.
  8. ^ a b Eaton, Sarah (2015). The Advance of the State in Contemporary China: State-Market Relations in the Reform Era. Cambridge, UK: Cambridge University Press. pp. 72–73.
  9. ^ Wen, Wang (19 November 2014). "HNA Group buys 8.3% equity stake in NH Hotel Group of Spain". China Daily. Retrieved 11 February 2016.
  10. ^ Carsten, Paul (11 January 2016). "Uber drives into China tourism industry with HNA Group tie-up". Reuters. Retrieved 11 February 2016.
  11. ^ Mellor, William and Wang, Jasmine (23 May 2014). "For Hainan Airlines’ Chen Feng, rise of resort in China provides lift for a new sky empire". The Washington Post. Retrieved 11 February 2016.
  12. ^ Fontanella-Khan, James (2016-02-18). "China’s HNA to buy Ingram Micro for $6bn". Financial Times. ISSN 0307-1766. Retrieved 2016-02-23. 
  13. ^ Wei, Lingling; Deng, Chao (2017-07-23). "Xi’s Sign-Off Deals Blow to China Inc.’s Global Spending Spree". Wall Street Journal. ISSN 0099-9660. Retrieved 2017-07-28. 
  14. ^ "Banks That Funded HNA's $40 Billion Spending Spree Halt New Loans". Bloomberg.com. 2017-07-24. Retrieved 2017-07-28. 
  15. ^ "HNA Group to Restore Chang An Air as Independent Carrier". China Aviation Daily. 27 December 2015. Retrieved 11 February 2016.
  16. ^ "Grand China Air ups stake in Hainan Airlines to 35%". Ch-aviation. 9 March 2015. Retrieved 11 February 2016.
  17. ^ Ge, Lena (9 December 2015). "HNA Group's Air Guilin Unveils Its Logo and Livery". China Aviation Daily. Retrieved 11 February 2016.
  18. ^ "HNA, of Hainan Airlines, takes 48% stake of France's Aigle Azur, giving backdoor European access". CAPA - Centre for Aviation. 24 October 2012. Retrieved 11 February 2016.
  19. ^ Horch, Dan (24 November 2015). "Brazilian Airline Azul Sells Stake to HNA Group of China". The New York Times. Retrieved 11 February 2016.
  20. ^ "HNA/Hainan Airlines buys 6.2% of South Africa's Comair, accelerating China-Africa aviation links". CAPA - Centre for Aviation. 2 June 2015. Retrieved 11 February 2016.
  21. ^ "HNA Group and Bravia Capital complete acquisition of ACT Airlines; rebranded as MyCargo Airlines". CAPA - Centre for Aviation. 25 October 2011. Retrieved 11 February 2016.
  22. ^ "Virgin Australia sells stake to China's HNA Aviation Group". The Sydney Morning Herald. Retrieved 2016-05-31. 
  23. ^ "HNA Group: four airlines form U-FLY Alliance, world's first LCC grouping, showing HNA consolidation". CAPA - Centre for Aviation. 22 January 2016. Retrieved 11 February 2016.
  24. ^ "HNA Group: HNA Holdings". HNA Group. Retrieved 11 February 2016.
  25. ^ "HNA Holdings: Airport Management". HNA Group. Retrieved 11 February 2016.
  26. ^ "HNA Group: HNA Capital". HNA Group. Retrieved 11 February 2016.
  27. ^ "HNA Group: HNA Capital". HNA Group. Retrieved 11 February 2016.
  28. ^ "HNA Group: HNA Logistics". HNA Group. Retrieved 11 February 2016.
  29. ^ a b c d e "Public Tender Offer by HNA Aviation (Hong Kong) Air Catering Holding Co., Ltd., Hong Kong for all publicly held registered shares with a nominal value of CHF 5.00 each of gategroup Holding Ltd, Kloten, Switzerland" (PDF). HNA Group. 19 May 2016. Retrieved 23 February 2017. 
  30. ^ a b "2015 Annual Report" (PDF). AID Partners Capital Holdings. Hong Kong Stock Exchange. 30 March 2016. Retrieved 23 February 2017. 
  31. ^ SEC filings
  32. ^ "Consolidated Financial Statements and Management Report 2016" (PDF). NH Hotel Group. 23 June 2017. Retrieved 25 July 2017. 
  33. ^ a b "西安民生集团股份有限公司收购报告书" (in Chinese). 6 March 2004. 
  34. ^ "COMPOSITE DOCUMENT RELATING TO MANDATORY UNCONDITIONAL CASH OFFER BY FORTUNE (HK) SECURITIES LIMITED ON BEHALF OF HNA ECOTECH PIONEER ACQUISITION TO ACQUIRE ALL THE ISSUED SHARES OF ADVANCED CARD SYSTEMS HOLDINGS LIMITED......" (PDF). Advanced Card Systems Holdings. Hong Kong Stock Exchange. 1 March 2017. Retrieved 22 April 2017. 
  35. ^ a b c d "Who owns HNA, China’s most aggressive dealmaker?". Financial Times. 2 June 2017. Retrieved 29 July 2017. 
  36. ^ "FORMS RELATING TO LISTING FORM F" (PDF). AID Partners Capital Holdings. 25 August 2015. Retrieved 23 February 2017. 
  37. ^ filing in Hong Kong Stock Exchange
  38. ^ http://www.cninfo.com.cn/finalpage/2011-05-18/59441523.PDF
  39. ^ Filing in Hong Kong Companies Registry
  40. ^ a b c d Filings in National Credit Information Publicity System (in Chinese) http://www.gsxt.gov.cn
  41. ^ "HNA’s mystery shareholder passes stake to charity". Financial Times. 25 July 2017. Retrieved 3 August 2017.