Hainan Airlines boosts cargo unit with capital increase and governance changes

Hainan Airlines Holding (HNA Holdings) plans to inject 75 bn yuan into Hainan Cargo Co., Ltd. (HNA Cargo), with 5.015 bn yuan allocated to registered capital and 69.984 bn yuan to capital reserves. This move will increase HNA Holdings' stake in HNA Cargo to 16.2227%, based on a valuation of 387.314 bn yuan for HNA Cargo's 100% equity. This is classified as a connected transaction, subject to approval at the upcoming 2025 Fifth Extraordinary General Meeting on December 17, 2025.

The board of directors of HNA Holdings has approved various governance changes, including revisions to the Articles of Association, the abolition of the supervisory board, and updates to several internal management systems. These resolutions will also be presented for shareholder approval at the extraordinary general meeting. Additionally, the company is seeking to renew the appointment of its auditing firm, Da Xin Certified Public Accountants (Special General Partnership), for 2025.

Further agenda items for the general meeting include a proposal to increase the inter-guarantee limit with its controlled subsidiaries for 2026 to 95 bn yuan and to ratify additional daily related-party transactions for 2025. The board also approved the purchase of spare aircraft engines and the election of new directors and independent directors for the eleventh board term.