A subsidiary of HNA, a big turnover!

Mondo Finance Updated on 2024-02-06

A few years ago, HNA's capital chain was broken, the debt crisis broke out, and finally had to go bankrupt and reorganize.

The main reason for this is over-diversification.

However, proper diversification is not a bad thing, and if it is carried out around the upstream and downstream of the industrial chain, it may be very necessary. In addition to the main aviation business, Yige believes that the most positive is Bohai Leasing. After the bankruptcy and reorganization of HNA Group in 2021, HNA's assets are divided into three parts:The aviation sector belongs to Fangda Group. The airport sector is owned by Hainan. Other assets go to creditors. The most valuable asset under the assets of HNA Trust is Bohai Leasing. Bohai Leasing used to be called "Bohai Financial Holdings". HNA uses it as a financial platform to build it into a super-large-scale financial empire. He has acquired insurance companies, ** companies, and leasing companies. Of course, the biggest acquisition was the acquisition of an aircraft leasing company, making it the third largest aircraft leasing company in the world. In September 2015, Bohai Financial Holding won 25US$5.5 billion acquisition of Irish aircraft leasing company Olon.

In April 2017, **olon, through its wholly-owned subsidiary, opened its name to 103US$800 million acquisition of CIT Group's commercial aircraft leasing business, making it the world's third-largest aircraft leasing company. As of the end of the second quarter of 2023, Bohai Leasing had a fleet of 905 aircraft, including 608 owned and managed fleets and 297 aircraft on order. Among the many links in the upstream and downstream of air transportation, Brother Yi believes:Aircraft leasing is one of the best tracks. Even during the pandemic, many aircraft leasing companies are still making money. After all, you don't fly flights, but you can't afford to pay the rental fee. This is also a big reason why many banks are racing to get in. With the accelerated recovery of the global civil aviation industry, aircraft leasing companies, especially those with a high degree of internationalization, have ushered in a period of explosive performance. Recently, Bohai Leasing announced its 2023 performance forecast:It is expected to be vested in 2023Net profit1.1 billion yuan - 1.6 billion yuan. In 2022, it will have a net loss of 19900 million yuan. In this regard, Bohai Leasing said: In 2023, the global aviation industry will be in a recovery cycle, in which the domestic aviation market will recover rapidly, the company's aircraft rental collection situation has improved, and the aircraft leasing revenue will increase significantly compared with the same period last year. At the same time, during the reporting period of 2022, due to the impact of the Russia-Ukraine conflict, the company had 10 aircraft located in Russia that could not be recovered, and the impairment loss on the relevant aircraft assets was 29.8 billion US dollars (equivalent to about 19 yuan.)8.8 billion yuan), there will be no such matter in 2023. In the future, all aspects will tend to normal, and the civil aviation industry will resume growth. **olon, a subsidiary of Bohai Leasing, released the 2024 global aviation and leasing industry outlook report, maintaining optimism about the industry's recovery and growth in 2024. First, the global aviation market is expected to carry 4.7 billion passengers in 2024, a record high. Second, the global aviation market will deliver more than 1,450 new large commercial aircraft in 2024, and the value of new aircraft delivered will increase by more than 15% to $100 billion. Third, due to the shortage of both narrow-body and wide-body aircraft, the aircraft market value and lease rates will increase significantly in 2023, and the aircraft market value and lease rates are expected to grow further in 2024. Brother Yi believes that Bohai Leasing will enter the track of benign development and will enter a period of continuous profit growth. In this regard, some netizens believe that it is a pity that Fangda did not acquire Bohai Leasing at the beginning. Indeed, whether it is HNA Technology, Bohai Leasing, and related aviation catering plates, etc., it is very necessary for large aviation groups to strengthen industrial synergy and moderate diversification!

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