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China Southern Airlines Authorizes Xiamen Airlines for Subsidiary Guarantees

Story Highlights
  • China Southern Airlines authorizes Xiamen Airlines to provide financial guarantees to its subsidiaries.
  • The total guarantees exceed 100% of the company’s net assets, raising financial concerns.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.

China Southern Airlines Company Limited Class H ( (HK:1055) ) has issued an update.

China Southern Airlines has announced its authorization for Xiamen Airlines to provide financial guarantees to several of its subsidiaries, including Hebei Airlines, various aircraft lease companies, Jiangxi Airlines, and Shangzhou Aviation Logistics. The total guarantee amount is substantial, with a maximum balance of RMB3,610 million for Hebei Airlines and varying amounts for other subsidiaries. This move highlights the company’s strategy to support its subsidiaries’ financial stability and growth, though it also raises concerns due to the total guarantees exceeding 100% of the company’s latest audited net assets, with some subsidiaries having high asset liability ratios.

More about China Southern Airlines Company Limited Class H

China Southern Airlines Company Limited is a major airline in the People’s Republic of China, providing passenger and cargo air transportation services. It operates in the aviation industry, focusing on expanding its market presence through strategic partnerships and financial arrangements.

YTD Price Performance: -22.06%

Average Trading Volume: 16,663,110

Technical Sentiment Signal: Buy

Current Market Cap: HK$95.54B

Find detailed analytics on 1055 stock on TipRanks’ Stock Analysis page.

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