China Express Airlines (G5, Chongqing) intends to sell the entirety of its ownership in training tech unit Huaxia Aviation Education Technology Industry Co. Ltd., to related entity Huaxia Yunyi International Education Technology Co. Ltd., for CNY604.43 million yuan (USD84.1 million), according to a February 21 filing.
The privately owned regional carrier said it was selling its subsidiary to focus on its core business of operating flights. According to the announcement, Huaxia Aviation Education Technology has a registered capital of CNY332 million (USD46.2 million) and has business activities in aviation-related fields such as crewing, maintenance, and dispatch training.
Via two subsidiaries, China Express Airlines has an 80% stake in Huaxia Yunyi International Education, which also has business activities across a range of aviation-related activities, including training.
China Express flies to 120 airports in two countries. Shenzhen Stock Exchange data reveals that China Express Airlines Holding (Shenzhen) Company Limited is the biggest shareholder in the carrier with a 28.41% stake. The airline's chairman, Hu Xiaojun, holds a 99% stake in China Express Airlines Holding and also controls Huaxia Yunyi International Education.
The proposal needs to go to a shareholders' meeting for final approval. Other significant shareholders in China Express Airlines include Shenzhen Rongda Supply Chain Management Partnership with a 10.97% stake; Tianjin Huaxia Tongrong Enterprise Management Centre with 6.26%; Shenzhen Cheng De Yong Sheng Investment Development with 5%; and Shenzhen Ruicheng Environmental Technology Partnership with 4.44%.
