HNA Holdings guarantees key subsidiaries' loans

Hainan Airlines Holding Co., Ltd. (HNA Holdings) has disclosed guarantees for two controlled subsidiaries: Hainan Airlines Technology Co., Ltd. (Hainan Tech) and Yunnan Xiangpeng Airlines Co., Ltd. (Xiangpeng Airlines).

HNA Holdings provided a 100 million yuan guarantee for Hainan Tech's working capital loan from Hainan Rural Commercial Bank and a 50 million yuan guarantee for Xiangpeng Airlines' financing lease with Chongqing Yinhai Financial Leasing Co., Ltd. Both subsidiaries have provided counter-guarantees to HNA Holdings.

As of the announcement date, HNA Holdings' total external guarantees for its controlled subsidiaries reached 271.36 billion yuan, representing 119.39% of the company's net assets as of the end of 2024. This includes guarantees for entities with a debt-to-asset ratio exceeding 70%. The guarantees fall within the 15.8 billion yuan inter-guarantee quota approved by shareholders for 2025.

The company's board believes these guarantees are crucial for the subsidiaries' daily operations and debt repayment capabilities. HNA Holdings maintains strong control over its subsidiaries, enabling timely oversight of their financial performance and credit status, thereby managing overall guarantee risks. The company currently has no overdue external guarantees.