Company status of Grand China Airlines Co., Ltd.

Grand China Airlines was once identified by HNA Group as a platform for the Group to integrate its aviation resources, and also a platform for attracting investment and operating China Xinhua Airlines Group. According to the plan, through integration, China Xinhua Airlines Group will become the fourth largest aviation group in China after China International Airlines, China Southern Airlines and China Eastern Airlines.

This "card replacement" action means that this platform will be replaced by HNA, an aviation listed company under HNA Group.

20 1 1 In the second half of the year, HNA successively acquired the remaining shares of Xinhua Airlines and Changan Airlines, as well as some shares of Yunnan Xiangpeng and Tianjin Airlines, and at the same time increased its holdings of Hong Kong Airlines Co., Ltd. and Daxinhua Technology Co., Ltd.

Through the above measures, the architectural outline of HNA as an aviation resource integration platform under HNA Group has gradually become clear.

On April 20 1212, Hainan Airlines officially announced that it would become an aviation resource integration platform under HNA Group, and promised to inject all the equity of Yunnan Xiangpeng Aviation Co., Ltd. held by Grand China Airlines into Hainan Airlines through equity transfer or other restructuring within 36 months. Previously, this role was played by Grand China Airlines.

However, the development of the situation did not follow the track originally arranged. HNA got the opportunity to be re-examined.

Within HNA Group, a series of adjustments and transformations are in full swing, including structural adjustment, industrial adjustment and enterprise adjustment. HNA Group has set up five working groups for this purpose, covering efficiency improvement, management framework, investment management, innovation and other aspects.