Open - The University of Hong Kong

An Introduction to HNA Group
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Contents
Sections
Page
HNA Overview 3
Business Mix 7
Spirits & CSR 17
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Section 1
HNA Overview
3

HNA Overview
Group Overview
• HNA initiated its business as a domestic regional
airline company (Hainan Airlines) in 1993. HNA
Group, founded in January 2000, has now grown
into a large integrated operator in diversified
modern service industries
Subsidiary Holding Groups
• HNA Group now provides full spectrum of
services in 9 major business sectors
2%
1%
10%
9%
8%
4%
HNA Group Business Mix
2011 Revenue Percentage
13%
6%
13%
35%
Air Transportation
Logistics
Manufacturing
Financial Services
Tourism
Real Estate
Hotel
Retailing
Airport Management
Other Business
• With the philosophy of providing
customers with diversified products and
personalized services, HNA Group develops
the value chain comprising 6 elements:
“Catering, Hotels, Transportation, Tourism,
Shopping, Entertainment”
• HNA Group’s headquarters is in Haikou,
Hainan province of China, while recently
moved parts of the headquarters office
operations to Beijing
4

HNA Overview
Fact Sheets
Social Honors
New Headquarters Plaza - Haikou
Corporate Rankings
• “Significant Contributor to the Great Development of
West China 2010” Awarded by Central CPC and State
Council
• “Excellent Private Company for National Employment
and Social Welfare 2010” Awarded by Ministry of Civil
Affairs
• “Top 60 Corporate Brands in 60 Years After the
Foundation of P.R. China” Awarded by CCTV
• “China’s Best Corporate Citizen 2009” Awarded by 21st
Century News Group
• “China Charity Award 2008” Awarded by Ministry of
Civil Affairs
• Brandz 2011 “China’s Most Valuable Brands Top 50”
• “Top 500 Enterprises in China” for 10 consecutive years
• Ranked 129th of China’s Top 500 Enterprises in 2011
• Ranked 46th of “Top 500 Service Enterprises in China
2011”
• Ranked 7th of “Top 500 Private Enterprises in China 2011”
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Office Plaza - Beijing

HNA Overview
Key Figures
50
40
30
20
10
0
17.5
15
12.5
10
7.5
5
2.5
0
Assets Growth Chart
(Billion US$)
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Revenue Growth Chart
(Billion US$)
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
140000
120000
100000
80000
60000
40000
20000
Financial Figures
• Total assets (end of 2011): US$ 41.27 billion
• Trust assets (end of 2011): US$ 25.40 billion
• Overseas assets (Nov. 2011): US$ 6.84 billion
• Annual revenue (2011): US$ 15.87 billion,
CAGR 48.36% since 1993
• Revenue of overseas entities (2011): US$ 1.52 billion
• Overseas M&A transactions (2011): US$ 1.79 billion
0
Employees Population
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
6

HNA Overview
Key Figures
Core Resources
• 5 public companies
• 24 air freighters
• 15 airports in China
• 24 overseas operating entities
• 48 travel agencies
• 39 vessels (owned and rent)
• 60+ hotels
• 387 aircrafts for civil aviation
• 400 + shopping malls and supermarkets
• 500 flight routes
• 3,200+ employees of foreign nationality
• 120,000 employees
• 1.63 million person-times of annual tourists volume
• 33.88 million person-times of annual passenger traffic
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Section 2
Business Mix
8

Business Mix
HNA Aviation (1993- )
History
• May 1993: Hainan Airlines began operation by flying Haikou-Beijing
• Sept. 1995: Hainan Airlines received investment from American Soros Quantum Fund
and became the first Sino-foreign joint venture airlines in China
• June 1997: Hainan Airlines issued B-shares at Shanghai Stock Exchange
• Nov. 1999: Hainan Airlines issued A-shares at Shanghai Stock Exchange
• Aug. 2004: Hainan Airlines opened its first intercontinental route "Beijing = Budapest”
• Nov. 2007: Grand China Air started operation
• Dec. 2009: Hainan Airlines was awarded “SKYTRAX 4-star Airlines”
• Jan. 2011: Hainan Airlines was awarded the world’s 7 th “SKYTRAX 5-star Airlines”
Sister airline Hong Kong Airlines was awarded “SKYTRAX 4-star Airlines”
• Dec. 2011: Sister airline Tianjin Airlines was awarded “SKYTRAX 4-star Airlines”
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Business Mix
HNA Aviation (1993- )
Honors
• SKYTRAX “Best Airline China” & “Staff Service Excellence China” 2011
• Voyage “2011 Travel Brand – Best Airlines” as the only Chinese airlines company
• Global Traveler “China Best Airlines”
• Brandz 2011 “China’s Most Valuable Brands Top 50”
• Ranked 5 th of "World Top 10 Safest Airlines 2011” by JACDEC
• “Golden Eagle Cup” and “Golden Roc Cup” multiple times by Civil Aviation Administration of China
• “Customer Satisfaction Trophy” for 10 consecutive years
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Business Mix
HNA Aviation (1993- )
Brands Mix
Routes Map
Corporate Profile
• The total asset of HNA Aviation has exceeded $
19 billion
• China’s 4th largest aviation group
• Hainan Airlines, a Skytrax five-star international
airline
Business Scope
Investment
Management
Terminal Building
Service
HNA
AVIATION
Fiduciary Assets
Management
Operation
Management
Key Parameters & Figures
Parameter
Figure
Destination Cities 130
Total Flight Routes 500
International Routes 15
Domestic Operation Bases 14
Fleet Size 387
Passenger Turnover 33,880,000
Consecutive Safe Hours 4,000,000
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Business Mix
Grand China Logistics (2007- )
Corporate Profile
Enterprise Scale
• Total Assets: Over US$ 9.44 billion
• Employees: 32,000
• Over 2000 operation offices in China with 39
vessels
Business Scope
Container
Shipping
Air
Freight
Express
4 Marine Enterprises
4 Land Logistics Enterprises
3 Shipbuilding Enterprises
1 Ship Management Enterprise
1 Crew Service Enterprise
2 Dock Enterprises
1 Virtual Logistics Enterprise
Industry Position
Bulk
Shipping
Port &
Terminal
Services
Thirdparty
payment
Ship
Building &
Repairing
Oil Tank
Shipping
• China Communications and Transportation Association
Vice-chairman Company
• “2010 National Advanced Logistics Enterprise”
• “2010 Best Innovation Ability Logistics Enterprise”
• “2010 Best Service Quality Logistics Enterprise”
• Ranked 3 rd of “2010 China Annual Top 100 Logistics
Enterprises”
12

Business Mix
HNA Capital (2007- )
Corporate Achievements
• International M&A Programs: GE SeaCo.,
Manhattan 1180 Bldg., US Cassa Hotel, One
York Street Bldg., etc.
• IPO of Bohai Leasing: 1 st leasing company in
A-share market.
• Initiate Yanshan Aviation Leasing industry
Fund as the 1 st aviation leasing fund in China
Business Scope
• 30 subsidiaries and 177 rent aircrafts
• Service outlets cover over 30 major cities in the
world
Leasing Trust Insurance Securities
Banking
Investment
Banking
Funds
New
Finance
35
30
25
20
15
10
5
0
Growth
4.98
5.32
14.56
9.17 8.38
19.60
13.69
2008 2009 2010 2011
Industry Position
• Ranked 1 st in the overall leasing and aviation
leasing scale and 6 th in the leasing fleet size
• Bohai International Trust Co., Ltd. was elected as
“China’s Most Growth Potential Trust”
• HNA Topwin Futures Co., Ltd. is among China’s
first batch of Stock Index Future trading
members and has been recognized as the
“Excellent Member of Shanghai Stock Exchange”
for six years in succession
Trust Assets
Owned Assets
13

Business Mix
HNA Holding (2007- )
Corporate Profile
Key Parameters & Figures
• Total assets: US$1.43 billion
• Employees: 30,000+
• Subsidiaries: 200+
Star Brand
• Retailing Holding
• Property Holding
• E-holding
• GoPay Holding
• Industry Investment
Retailing Holding
• 29 subsidiaries
• US$ 3.24 billion revenue
• 388 stores and 1.14 million square meters
operation area.
Property Holding
• Nearly 100 projects have been completed or
initiated
• Land area 10 million m 2 under development and
over 30 million m 2 still reserved
E-Holding
Railway
Catering
HNA Liquor
Fruit Juice
Green
Industry
Pharmaceutical
Manufacturing
GoPay Holding
• E-payment Platform, Pre-paid Card and Acceptance
14

Business Mix
HNA Infrastructure (2007- ) – Airport Management
Business Scope
Airport Management Developing
Real State
Airport
Management
• Covering real estate development,
marketing, property management and
agriculture
• 3rd largest airport management group
in China
400,000
300,000
200,000
100,000
0
2008 2009 2010 2011
Core Creations
Aircraft Movements
Passenger Traffic
(hundred persontimes)
Cargo & Mail(tons
)
Construction
• Specialized in construction projects of
reclamation, wharf, airport and real
estate
Key Figures & Parameters
• Total Asset: over $ 9.56 billion
• Revenue: US$ 2.48 billion
• 16000 employees
• 15 airports, 2 resorts under management, 1 offshore
duty free shop and 1 shopping mall
• Real Estate: Jizhou New Town, HNA
Airport Industry Park, HNA China
Town, and HNA Dakangle Plaza (at the
Red Detachment of Women Resort)
Awarded as “Sanitary Int’l Airport” by
WHO in 2005
• Airport: airport management
service, airport complex (dutyfree
shops included)
• Residence: Sea & Sky series,
Sea-view Urban Complex series,
and YOHO new business district.
15

Business Mix
HNA Tourism (2007- )
Corporate Profile
• Dedicated to becoming the largest domestic and a
leading international integrated tourism service
provider
• Undertaking the mission of transforming the
consumption concept of nationals
• Initializing and leading the new way of life in tourism
and consumption
• Ranked 6 th of “China Best Tourism Business Top 20”
Core Resources
85 Aircrafts 479 Leasing Vehicles 55 Travel Agencies
Business & Brands
33 Easy Card Subsidiaries 43 Currency Exchange
Stands
60 Hotels
HNA
Easy
Card
Product
R&D
Center
One Card,
One Website,
One Center
51YOU
Tourism
Website
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Business Mix
Other Businesses
Entities Profile
Entity Name
HNA Xinhua Culture (Holding) Group Co., Ltd.
Sanya Aviation Tourism Vocational College
Changsha Southern Vocational College
HNA Civil Aviation Import & Export Co., Ltd.
Jinhai Heavy Industry Co., Ltd.
Industry
Culture
Education
Education
Aviation Trade
Manufacturing
Sanya Aviation Tourism Vocational College
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Section 3
Spirits & CSR
18

Spirits & Charity
HNA Spirits
HNA Philosophy
• HNA deems itself as a piece of cloud, the Party, the Country
and the People as the blue sky. By floating in the sky, it
obtains broad vision
• HNA deems itself as a cup of water, the Party, the Country
and the People as the great ocean. By flowing into the ocean,
it obtains endless vigor
Common Ideal
Common Belief
• To benefit human well-being and
world peace
• God bless the good man, master
one’s own life and make one’s own
decision
• Truth, goodness and beauty
• Boundless love
Apothegm for HNA Colleagues
Harmony is the basis for collective prosperity;
Perseverance is the rule to study progress;
Careful recipe is the best medicine to health;
Forgiveness is most needed in dispute;
Kindness to youth endows the superior with virtue;
Diligence leads research to accession of knowledge;
Sincerity is the fundamental in daily life;
Modesty is the best policy in human relationship;
Preparation avoids needless drudgery;
Prudence remains essential in conducting business.
Common Pursuit
Common Philosophy
• Recognized by the public,
participated by the public,
achieved by the public and shared
by the public
• Integrity, performance and
innovation
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Spirits & CSR
HNA CSR
Five Responsibilities
• Being responsible for society
• Being responsible for environment
• Being responsible for investors
• Being responsible for customers
• Being responsible for colleagues
CSR Milestone
• HNA Brightness Action has cured more than
4000 cataract patients in Qinghai-Tibet Plateau
and Africa for the past 10 years
• Generous donation worth over US$ 111.1 million
to natural disaster struck regions, poverty struck
regions, China Disabled Persons’ Federation,
China Charity Federation, Red Cross , China
Youth Development Foundation, China Women’s
Development Foundation, China Association of
Environmental Protection Industry and
underprivileged students.
Charity Actions
• In 2010, HNA published “White Paper of HNA
Corporate Responsibilities 2009”, which officially
grants its corporate responsibility into strategy
and marks HNA’s new era of all-round
responsibility management.
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Thank You!
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