HNA Group — BrandWiki

HNA Group

Overview

HNA Group Co., Ltd.

type	Private
industry	Aviation, tourism, financial services, real estate, logistics
founded	April 16, 1998
defunct	December 8, 2021
founders	Chen Feng, Wang Jian, Tan Xiangdong, and others
fate	Bankrupted * The aviation division acquired by Liaoning Fangda Group Industrial. * The airport division acquired by Hainan Development Holdings Co., Ltd.
successors	HNA Aviation (owned by Liaoning Fangda Group Industrial) Hainan Airport Group (owned by Hainan Development Holdings Co., Ltd.)
hq location	HNA Building
hq location city	Haikou
hq location country	China
key people	Chen Feng (chairman) Tan Xiangdong (Adam Tan, Vice-chairman & CEO) Zhang Ling (CEO) Gu Gang (Party secretary of HNA Group)
revenue	CN¥100.941 billion
revenue year	2015
operating income	CN¥2.366 billion
income year	2015
net income	CN¥806 million
net income year	2015
assets	CN¥468.709 billion
assets year	2015
equity	CN¥22.514 billion
equity year	2015
owner	Hainan Traffic Administration Holding (70%) Jianyun Investments (30%)
parent	Hainan Traffic Administration Holding (direct) Hainan Province Cihang Foundation (ultimate)
footnotes	in a consolidated basis; equity and profit excluded minority interests; in Chinese Accounting Standards‡R1R‡

HNA Group Co., Ltd., was a Chinese conglomerate headquartered in Haikou, Hainan, China. Founded in 2000, it was involved in numerous industries including aviation, real estate, financial services, tourism, logistics, and more.[2] It was the owner of Hainan Airlines and a part owner of Grand China Air.[3] In July 2017, HNA Group ranked No. 170 in 2017 Fortune Global 500 list with a revenue of $53.335 billion.[4] It was one of the most active investment companies in the world, acquiring numerous assets under its name.[5][6] In 2021, the corporation declared bankruptcy after debt restructuring efforts failed.

Entities

HNA Group was composed of seven sub-groups: HNA Aviation, HNA Tourism, HNA Capital, HNA Holdings, HNA Modern Logistics, HNA Innovation Finance, and HNA Innovation Media & Entertainment.[35]

HNA Aviation

In December 2021, HNA Aviation was sold to Liaoning Fangda Group Industrial.[33]

HNA Aviation is affiliated with multiple Chinese airlines. These include the following:[36][37][38]

The group also has stakes in some carriers based outside the Chinese mainland, including Hong Kong Airlines as well as Africa World Airlines, Azul Brazilian Airlines (23.7%),[39] MyCargo Airlines,[40] TAP Air Portugal (2.5%) and had a stake in Virgin Australia (13%).[41]

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.[42]

On 27 March 2019, HNA Aviation sold full stake of HK Express to Cathay Pacific for HK$4.93 billion. The transaction was expected to be completed by 31 December 2019, and by that time HK Express would become Cathay Pacific's wholly owned subsidiary.[43][44]

Other entities

HNA Tourism is involved in the tourism industry. Subgroup HNA Hospitality Group operates several resorts, business hotels, boutique hotels, and the Tangla hotel chain.[45]

In 2015, the HNA Group purchased a failing hotel in Kerhonkson, New York, in upstate New York. The Hudson Valley Resort & Spa was featured on an October 2017 Planet Money podcast exploring why a Chinese multinational company would invest in a remote hotel in the United States.[46]

HNA Capital deals with financial services and investment banking. It has over 30 member companies,[47] such as Bohai Trust.

HNA Holdings is involved in real estate and the retailing industry.[48]

Subsidiaries

Investments and acquisitions

Equity investments

Grand China Air (23.11%) as second largest shareholder
Haikou Meilan International Airport
Hainan Airlines (4.88% directly; additional 4.25% via subsidiary Changjiang Leasing) as second largest shareholder; Grand China Air is the largest shareholder of Hainan Airlines.
HNA Infrastructure
AID Partners Capital Holdings (via HNA Group Holding and subscription of convertible bond).
HNA Technology (20.76% via HNA Technology Group)
Ingram Micro (100%), it was divested in 2020 for US$7.2 billion.[57]
Deutsche Bank (previously 9.90% as the largest shareholder as of April 2017, jointly owned by subsidiaries BL Capital Holdings and HNA Innovation Finance Group via C-QUADRAT Special Situations Dedicated Fund;[58] stake reduced to 8.8% as of February 16, 2018[59] and further reduced to 6.3% as of February 16, 2019[60])
NH Hotel Group (29.34% as of 27 February 2017)[61]

Acquisitions

2015

In January 2015, affiliate Bohai Leasing purchased the Bermuda-based container leasing group, Cronos Limited, for €2.18 billion.[71]
In June 2015, HNA purchased a 6.2% interest in the South African airline, Comair.[72]
In June 2015, HNA Group bought a 15 percent stake in Red Lion Hotels Corporation from Columbia Pacific Advisors.[73]
In July 2015, HNA Group purchased airport ground handler Swissport International Ltd. from PAI Partners SAS for 2.73 billion Swiss francs (US$2.8 billion).[73]

2016

In January 2016, the HNA Group via its Bohai Leasing affiliate, purchased Irish aircraft leasing company Avolon. When combined with HNA's existing aircraft leasing business, the new entity with over 500 aircraft will become the world's fourth largest aircraft leasing business by asset value.[78]
In February 2016, the HNA Group agreed to purchase technology distributor, Ingram Micro for $6.0 billion, via its controlled affiliate, Tianjin Tianhai Investment Co Ltd.[79]
In April 2016, the HNA Group purchased the London-based, ICE - International Currency Exchange.[80]
In April 2016, the HNA Group purchased US$38B in sales Minneapolis-based Carlson Rezidor Hotel Group (owner of the Radisson brand) which included a majority interest in US$7 billion in sales

2017

In January 2017, HNA Group announced the purchase of asset finance firm UDC Finance, New Zealand's largest non-bank lender, for NZL $660 million (US$460 million)[88] by its Tip Trailer Services affiliate in Europe.[89] The sale was still pending as of October 2017 due to regulatory issues.
In February 2017, HNA Group's HNA Capital arm purchased a 3.04% stake in Deutsche Bank.[90] Their stake was soon after increased to 4.76%[91] and then to 9.9% in May 2017, becoming their single largest shareholder.[92]

Shareholders

The shares of HNA Group were owned by two companies directly: Hainan Jiaoguan Holding for 70% and Yangpu Jianyun Investments for 30%. Two companies originally were incorporated by Chinese state-owned enterprises, such as Haikou Meilan International Airport.

Hainan Traffic Administration Holding was 50% owned by Tang Dynasty Development (Yangpu), 25% by Yangpu Hengsheng Chuangye and 18.21% by Yangpu Zhongxin Airlines Holding and 6.78% by Hainan Xinhuading Trading as of March 2017.[103]

Tang Dynasty Development (Yangpu) was 65% owned by Hainan Province Cihang Charity Foundation and 35% by Hong Kong incorporated company Tang Dynasty Development.

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 (, acquired from Bharat Bhisé in 2016).[104][105][106]

Yangpu Hengsheng Chuangye was owned by HK incorporated company Headstreams Investment, which was 98% owned by Bharat Bhisé and 2% by R.J. Conrads in 2004.[107] As in 2015 Bhisé still owned 98% of Headstreams Investment,[108] while the 2% stake of Headstreams was owned by Caymans-incorporated HAC (RAC), Limited as in 2011.[109] In 2016, Bhisé also transferred the stake of Headstreams to Jun Guan.[110]

Yangpu Jianyun Investments and Yangpu Zhongxin Airlines Holding were owned by The Committee of Hainan Airlines Trade Union .[54] 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. While Jianyun Investments was now owned by HNA Group directors Chen Feng (, 35.05%), Wang Jian (, 35.05%), Chen Wenli (, 9.23%), Tan Xiangdong (, 6.89%), Li Jing (, 6.89%) and Li Xianhua (, 6.89%).[106] For Zhongxin Airlines Holding, the owners also became the 6 shareholders of Jianyun Investments with the same ratio;[106] for newly established Xinhuading, the shareholders were 4 more HNA Group directors Lu Ying, Zhang Ling Huang Gan and Huang Qijun .[111]

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 US-registered private foundation Hainan Cihang Charity Foundation, Inc. in 2017.[112]

Reuters also interviewed Bharat Bhisé, who had served as a director of several subsidiaries of HNA Group, as well as a business partner in acquisition via Bhisé's owned Bravia Capital as well as a dealmaker, say he hold the shares of HNA Group indirectly, was “an 'accommodation' to the company and received no compensation for doing so”.[113] HNA Group also sued in exile Chinese billionaire Guo Wengui for defamation in June 2017,[114] which Guo was spreading the rumour on the identity of the true owner of the group.

In 2017, the Swiss Takeover Board ruled that HNA Group provided false information regarding Bhisé and Guan on the takeover of Gategroup.[115] In September 2019, the Swiss Financial Market Supervisory Authority announced that it would lodge a criminal complaint against HNA Group for repeatedly filing false disclosures of its shareholding structure.[116][117]

2015

2016

In January 2016, the HNA Group via its Bohai Leasing affiliate, purchased Irish aircraft leasing company Avolon. When combined with HNA's existing aircraft leasing business, the new entity with over 500 aircraft will become the world's fourth largest aircraft leasing business by asset value.[78]
In February 2016, the HNA Group agreed to purchase technology distributor, Ingram Micro for $6.0 billion, via its controlled affiliate, Tianjin Tianhai Investment Co Ltd.[79]
In April 2016, the HNA Group purchased the London-based, ICE - International Currency Exchange.[80]
In April 2016, the HNA Group purchased US$38B in sales Minneapolis-based Carlson Rezidor Hotel Group (owner of the Radisson brand) which included a majority interest in US$7 billion in sales

2017

In January 2017, HNA Group announced the purchase of asset finance firm UDC Finance, New Zealand's largest non-bank lender, for NZL $660 million (US$460 million)[88] by its Tip Trailer Services affiliate in Europe.[89] The sale was still pending as of October 2017 due to regulatory issues.
In February 2017, HNA Group's HNA Capital arm purchased a 3.04% stake in Deutsche Bank.[90] Their stake was soon after increased to 4.76%[91] and then to 9.9% in May 2017, becoming their single largest shareholder.[92]