Hainan Airlines provides significant guarantees for its subsidiaries

Hainan Airlines Holding Co., Ltd. has issued guarantees totaling $31,955.30 million for its subsidiaries, including Fuzhou Airlines, Urumqi Air, Chang'an Airlines, and Yunnan Lucky Air. These guarantees, primarily for aircraft leases and a credit line, are within the 2025 annual authorized inter-guarantee limit of RMB 15.8 billion approved by the company's board and shareholders in December 2024.

The guarantees are structured as joint lessee obligations for aircraft leases with China Development Bank Financial Leasing Co., Ltd. and a joint liability guarantee for Chang'an Airlines' RMB 200 million credit line with Bank of Beijing. As of the announcement date, Hainan Airlines Holding's total external guarantee balance, including these new commitments, stands at RMB 261,364.33 million, representing 114.99% of its audited net assets attributable to the parent company for 2024.

Despite the high guarantee ratio, the company states that all subsidiaries have provided counter-guarantees, and there are no overdue external guarantees. Hainan Airlines Holding maintains absolute control over the operational and financial conditions of the guaranteed entities, mitigating overall risk.