Author/Steamed Bun under the Starry Sky

Editor/Starry Sky of Spinach

Typesetting/Starry Sky of Spinach

This announcement has really upset enthusiastic netizens, and everyone has a hot discussion. HNA Group has gone bankrupt and reorganized. How is the flight attendant of HNA?

The hot discussion among netizens reflects two problems:

In order to clarify the above two problems for enthusiastic netizens, let's start with the source of the bankruptcy reorganization.

In 1993, the little-known HNA could not be called a group, with a net worth of only RMB 11 million.

In that year, HNA raised the company's first bucket of gold-251 million yuan through the inline shareholding system (close to the current private placement method), which opened the initial track of HNA.

In the following two years, HNA raised funds from Soros Quantum Fund and American creditors from Wall Street with amazing lobbying ability (legend has it that gods helped), bought more Boeing planes, and made more and more HNA planes through revolving mortgage loans.

Thanks to American funds and the endorsement of Hainan government, HNA finally landed in the A-share market in 1999. Later, it was with the support of domestic A-share market funds that HNA was able to fight and survive in the big wave of mergers and acquisitions of domestic aviation industry around 2111. At that time, HNA became the fourth largest aviation group besides Air China, China Southern Airlines and China Eastern Airlines by acquiring Shaanxi Changan Airlines, Xinhua Airlines, Shanxi Airlines, meilan airport and Hainan Airport.

Hainan Airlines, one of the top four airlines, was caught by the unexpected SARS in 2113 before it embarked on a calm channel. This made HNA, which was originally nervous because of mergers and acquisitions, lose nearly 1.5 billion in the year when SARS broke out.

Perhaps it was the Black Swan incident of SARS that made HNA's decision makers realize that HNA's single aviation business made the company's ability to resist risks too weak, and only diversified roads could hedge risks. This diversification, in HNA's view, requires both industry diversification (cross-border) and geographical diversification (going out to sea).

Since then, the road that HNA bought in buy buy is gone forever:

In aviation-related fields:

In 2111,

it acquired 49% equity of Turkish ACT Cargo Airlines; Acquisition of SeaCO equity, one of the top five container leasing companies in the world;

In 2115,

acquired 6% equity of South African Commercial Aviation Group; Acquisition of 111% equity of Swiss Airport Company;

In 2116,

acquired GateGroup；, the world's first aviation catering enterprise; Acquisition of 13% equity of Virgin Australia;

In 2117,

acquired 51% equity of Rio de Janeiro Airport in Brazil.

In the financial field:

In 2119,

it acquired the aviation leasing business of Allco Financial Group in Australia;

in 2116

acquired 111% equity of Avolon, an Irish aircraft leasing company, the fourth largest aircraft leasing company in the world;

In 2117

, it successively acquired 11% equity of Deutsche Bank; Acquisition of 111% equity of OMAsset Management, an American asset management company; Acquisition of Austrian C-Quadrat investment fund.

In the field of real estate/hotels:

In 2111,

acquired 91% equity of No.1181, Sixth Avenue, Manhattan, new york, which is a subsidiary of Carlyle Group; Acquisition of office building No.1 York Street, Sydney;

in 2113

acquired 21% equity of NH Hotel Group, the third largest hotel chain group in Europe;

In 2116,

acquired 91% equity of American ShorenStein Real Estate Company; Acquisition of 111% equity of Carlson Hotel Group; Acquisition of Belgian Rezidor Hotel Group; In the same year, it also acquired some core plots of real estate in London, England and San Francisco, USA.

In addition to aviation, finance and real estate, HNA Group has also acquired overseas assets such as technology, consumption and entertainment.

The results after more than ten years have proved that if the direction of diversification is off, it is tantamount to drinking poison to quench thirst. The result of buying Crazy buy buy must be debt. In recent years, the overall debt ratio of HNA Group has been over 71%, far exceeding the average level of its peers. At the end of the third quarter of 2121, the asset-liability ratio of HNA Group was as high as 78.9%, 1.3 percentage points higher than that of its peers.

So how did HNA maintain capital operation and support Haoheng's acquisition in previous years?

1. The listing platform keeps increasing

In 2115, for example, five listed companies under HNA Group came up with plans to increase their listing. Among them, HNA Holdings (611221) will increase by 24 billion yuan, HNA Investment (111616) will increase by 12 billion yuan, Caesars Tourism (111796) will increase by 811 million yuan, Bohai Leasing (111415) will increase by 16 billion yuan, and Xi 'an Minsheng (111564) will increase by 911 million yuan, totaling 53.7 billion yuan.

2. Brother enterprises guarantee each other

In the 2119 annual report of HNA Holdings (611221), there are 21 pages of related party guarantees and as many as 168 items, totaling 43.3 billion yuan, accounting for 69.72% of the company's net assets. Among them, the total guarantee for its parent company HNA Group is 27.4 billion yuan.

3. Non-operating related funds

It is more common for listed companies of Hainan Airlines to provide non-operating occupied funds for the parent company HNA Group and other related enterprises. For example, in 2118, HNA Holdings provided 6.57 billion yuan of liquidity for HNA Group to pay off its creditor's rights; In 2119, HNA Foundation also experienced the situation that related parties occupied funds, and did not perform any corporate governance procedures.

In other words, a listed company sent funds to related parties without convening a board meeting or a shareholders' meeting, and even without issuing any notice, it did it quietly.

In 2119, HNA Foundation (611515) violated the rules of related party's capital occupation and capital guarantee

The leverage released will be recovered eventually.

how to collect it? HNA relies on the "mutual help" of its many listed platforms. Therefore, in recent years, the listed subsidiaries of HNA have not performed the "warmth" drama of crows feeding back and lambs kneeling, but only paying the bill, and finally holding the small leek of HNA shares.

In addition to the problems that can be clearly seen from the annual report, there are several issues worth pondering. For example, how did HNA get the foreign exchange index for large-scale overseas investment? How are revolving mortgage loans and bank loans under mutual guarantees continuously obtained?

I didn't get it. I wonder if the immortals got it?

The debt pustule of HNA Group is broken, which is actually a good thing on the other hand. After all, the aviation business is well-known, the airport assets have been appreciating, and other real estate projects are also increasing in value. The problem is the debt of HNA Group, not the assets themselves.

The bankruptcy and reorganization of HNA Group actually gave the company the opportunity of phoenix nirvana. Bankruptcy reorganization focuses on "consolidation" rather than "bankruptcy". The main purpose of bankruptcy reorganization is to make the company continue to operate through the renegotiation of creditor's rights and debts, the adjustment and reform of the company's business and management.

To sum up, there are four main tasks in the current bankruptcy reorganization of HNA Group:

As the saying goes, if it is not broken, it will not stand. Only by breaking the high leverage accumulated in the past can HNA really continue to fly with beautiful stewardesses.

Note: This article does not constitute any investment advice. The stock market is risky, so you need to be cautious when entering the market. No business, no harm.