According to Zhitong Finance App, Meilan Airport (00357) announced that on August 21, 2026, Ruigang Logistics, a wholly-owned subsidiary of the company, signed an equity transfer agreement with Hainan Airport Development. Ruigang Logistics will sell and Hainan Airport Development will acquire the target shares (equivalent to 6% of the total shares of Hainan Airport Holdings). According to the equity transfer agreement, the total cost of Hainan Airport Development to transfer target shares to Ruigang Logistics is RMB 109 million.
On July 20, 2026, China Express Airport, a subsidiary of the Company, signed a duty-free franchise agreement with an independent third party, Zhongfu Group. China Free Group has the right to manage, operate and engage in duty-free sales business in the designated area of Meilan Airport for the period from July 20, 2026 to February 7, 2033.
On August 21, 2026, Sino-Singapore Airport, China Duty Free Group and HNA entered into a tripartite replacement agreement. Hainan Airlines will assume all the rights and obligations of China Express Group under the duty-free franchise agreement.
As of June 30, 2026, the 24.5% shares of Hainan Airport Holdings held by Ruigang Logistics had a carrying value of approximately RMB 312 million in the Company's consolidated financial statements. Based on the book value of medium- to long-term equity investment in Ruigang Logistics's independent financial statements, the assessed value of the target equity share increased by approximately RMB 33 million. After the sale is completed, the remaining shares will no longer have a significant impact on Hainan Airport Holdings, and the accounting process will be reclassified from long-term equity investments into financial instruments. The assessed value of the remaining shares increased by approximately RMB 100 million compared to book value. According to applicable Chinese accounting standards, when the adoption of the equity law is terminated, previously confirmed capital reserves and other comprehensive income totaling approximately RMB 407 million must be recognized as current profit and loss. After considering the above factors, it is anticipated that the sale will result in an investment income of approximately RMB 540 million confirmed in the Company's consolidated financial statements.
The Group's main business is the operation of Meilan Airport. The shares of Hainan Airport Holdings held by Ruigang Logistics are investment assets that are less relevant to the Group's core business. The sale enabled the Group to divest non-core assets and focus resources on core airport operations. Furthermore, the proceeds from the sale will be used to repay the Group's debts, reduce interest-bearing debts and financing costs, and are expected to improve the Group's financial situation. At the same time, considering the development of the Hainan Free Trade Port, retaining the remaining 18.5% of Hainan Airport Holdings can maintain long-term strategic participation in the growth potential (including) of Sanya Phoenix International Airport, and can flexibly further sell the relevant shares according to market conditions.