Hainan Airlines’ Stock Gets Much-Needed Boost From Key Investor

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What’s new: One of Hainan Airlines Holding Co. Ltd.’s (600221.SH) key shareholders has boosted its stake in the Shanghai-listed carrier, helping drive up its share price, which has been hovering close to the level that would trigger a forced delisting.

American Aviation LDC. bought some 2.57 million B shares on Friday, according to a stock exchange filing on Monday. American Aviation acts in concert with Hainan Airlines’ controlling shareholder Hainan Hanwei Investment Co. Ltd., which owns 24.41% of the airline.

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American Aviation LDC. bought 2.57 million B shares of Hainan Airlines, corresponding to 0.01% of the company's total capital stock and worth around $322,000.
The move is part of a planned capital injection of $5 million to $10 million within the next six months, driving up Hainan Airlines' share prices.
Hainan Airlines saw a Q1 net profit increase of over 400% to 686.5 million yuan, with revenues rising 33.5% to 17.6 billion yuan.

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Who’s Who

Hainan Airlines Holding Co. Ltd.: Hainan Airlines Holding Co. Ltd. (600221.SH) is a Shanghai-listed carrier whose shares recently surged after a key shareholder, American Aviation LDC., increased its stake. The airline's A shares risk delisting if they fall below 1 yuan for 20 consecutive trading days. The company saw a significant rise in net profit to 686.5 million yuan in Q1, driven by a 33.5% revenue increase to 17.6 billion yuan.

Hainan Hanwei Investment Co. Ltd.: Hainan Hanwei Investment Co. Ltd. is the controlling shareholder of Hainan Airlines Holding Co. Ltd., owning 24.41% of the airline. It acts in concert with American Aviation LDC., which recently increased its stake in the Shanghai-listed carrier.

American Aviation LDC.: American Aviation LDC. is a key shareholder of Hainan Airlines Holding Co. Ltd. It acts in concert with Hainan Hanwei Investment Co. Ltd., the controlling shareholder owning 24.41% of Hainan Airlines. American Aviation recently purchased 2.57 million B shares and plans to invest between $5 million and $10 million more in the airline within the next six months.

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What Happened When

June 3, 2024：: The price of Hainan Airlines' A shares was 1.33 yuan apiece.

Friday, June 28, 2024：: The price of Hainan Airlines' A shares was 1.02 yuan apiece. American Aviation LDC. bought some 2.57 million B shares of Hainan Airlines.

Monday, July 1, 2024：: A stock exchange filing revealed American Aviation LDC.'s purchase of 2.57 million B shares. The prices of Hainan Airlines' A shares and B shares surged by their daily limit to close at 1.12 yuan and $0.158, respectively.

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