Meilan Airport: Hainan Airport Development plans to transfer 100% equity of Tianyu to Hainan Airlines Holding. Hainan Airport Development and Hainan Airlines Holding plan to increase capital to Hainan Airlines Technology for a total of approximately 2.4016 billion yuan

Zhitong Finance APP news, Meilan Airport (00357) announced that on June 6, 2025, and August 27, 2025, Hainan Airport Development and Hainan Airlines Holding respectively signed a main equity transfer agreement and a supplementary equity transfer agreement. According to and in accordance with the equity transfer agreement, Hainan Airport Development has conditionally agreed to transfer 100% equity of Tianyu to Hainan Airlines Holding, with a transfer price of approximately RMB 799 million. Upon completion of the Tianyu transfer, Hainan Airport Development will no longer hold any equity in Tianyu.

In addition, Hainan Airport Development and Hainan Airlines Holding plan to sign a capital increase agreement. According to and in accordance with the capital increase agreement, Hainan Airport Development and Hainan Airlines Holding will conditionally agree to increase capital to Hainan Technology in cash according to their existing equity ratio in Hainan Technology, with a total amount of approximately RMB 2.4016 billion. Hainan Airport Development and Hainan Airlines Holding hold approximately 31.9305% and 68.0695% equity in Hainan Technology, respectively.

Hainan Airport Development believes that the Tianyu transfer will help the domestic shareholder (i.e., the sole shareholder of Hainan Airport Development) further focus on the airport's main business and optimize resource allocation. It is expected that upon completion of the Tianyu transfer, Hainan Airport Development (and the domestic shareholder indirectly) will obtain an investment income of approximately RMB 203 million (the specific amount is subject to the final audited financial report disclosed by the domestic shareholder).

According to Hainan Airlines Holding's announcement, Hainan Airlines Holding believes that Tianyu is 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 retraining courses. Hainan Airlines Holding believes that the Tianyu transfer will help improve its aviation industry supply chain layout, thereby promoting the expansion of its core air transportation business, reducing operating costs, and enhancing its core competitiveness and overall operational risk resistance. Hainan Airlines Holding can achieve the dual goals of safety compliance and cost-effective management.

Hainan Airport Development and Hainan Airlines Holding (according to Hainan Airlines Holding's announcement) are optimistic about the future development potential of Hainan Technology and believe that the capital increase will enhance Hainan Technology's financial strength, optimize its capital structure, reduce its debt-to-asset ratio, and improve its financing capacity, providing financial support for enhancing its production capacity.

In addition, the domestic shareholder (i.e., the sole shareholder of Hainan Airport Development) believes that the capital increase will further strengthen its business cooperation with local base airlines, continuously promote its airport industry layout, and enhance its sustainable development capabilities