MEILAN AIRPORT (00357) announced that on June 6, 2025 and August 27, 2025, Hainan Airport Development and Hainan Airlines Holding Co.,Ltd. entered into a principal equity transfer agreement and a supplemental equity transfer agreement respectively. According to the equity transfer agreement, Hainan Airport Development has conditionally agreed to transfer 100% equity of Tianyu to Hainan Airlines Holding Co.,Ltd. for a consideration of approximately RMB 799 million. Upon completion of the Tianyu transfer, Hainan Airport Development will no longer hold any equity in Tianyu.
Additionally, Hainan Airport Development and Hainan Airlines Holding Co.,Ltd. intend to enter into a capital injection agreement. According to the capital injection agreement, Hainan Airport Development and Hainan Airlines Holding Co.,Ltd. will conditionally agree to inject capital into Hainan Technology in cash according to their existing shareholding ratios in Hainan Technology, with a total amount of approximately RMB 2.4016 billion. Hainan Airport Development and Hainan Airlines Holding Co.,Ltd. hold approximately 31.9305% and 68.0695% equity in Hainan Technology respectively.
Hainan Airport Development believes that the Tianyu transfer will help the domestic share offeror (i.e., the sole shareholder of Hainan Airport Development) further focus on the airport main business and optimize resource allocation. It is expected that upon completion of the Tianyu transfer, Hainan Airport Development (and the domestic share offeror indirectly) will obtain investment income of approximately RMB 203 million (the specific amount is subject to the final audited financial report disclosed by the domestic share offeror).
According to Hainan Airlines Holding Co.,Ltd.'s announcement, Hainan Airlines Holding Co.,Ltd. considers Tianyu an important supporting enterprise for its daily operations, responsible for training more than half of its pilots, flight attendants and other aviation-related personnel, including regular simulator training and annual recurrent training courses. Hainan Airlines Holding Co.,Ltd. believes that the Tianyu transfer will help improve its aviation industry supply chain layout, thereby promoting the expansion of its core aviation transportation business, reducing operating costs, and enhancing its core competitiveness and overall operational risk resistance. Hainan Airlines Holding Co.,Ltd. can achieve the dual objectives of safety compliance and lean cost management.
Hainan Airport Development and Hainan Airlines Holding Co.,Ltd. (according to Hainan Airlines Holding Co.,Ltd.'s announcement) are optimistic about Hainan Technology's future development potential and believe that the capital injection will strengthen Hainan Technology's financial strength, optimize its capital structure, reduce its asset-liability ratio, and improve its financing capabilities, providing financial guarantee for enhancing its production capacity. Furthermore, the domestic share offeror (i.e., the sole shareholder of Hainan Airport Development) believes that the capital injection will further strengthen its business cooperation with local base airlines, continuously promote its airport economic zone industry layout, and enhance its sustainable development capabilities.