(Yicai Global) April 27 -- Real estate developer HNA Investment Group Co. [SHE:000616], subsidiary of Chinese conglomerate HNA Group Co., recorded a net loss of CNY435 million (USD63 million) in its recently released financial results for last year, marking the company's first loss since listing in Shenzhen in 1996.
An increase in asset impairment losses, reduced real estate sales, and higher expenses contributed to the loss, HNA Investment said.
HNA Group made many large-scale overseas mergers and acquisitions in recent years and has participated in at least 12 M&A deals this year.
Dufry AG said yesterday that HNA Group had entered into an agreement with third parties to purchase a 16.79 percent share of the Basel-based company. HNA Group's stake was valued at about CHF1.44 billion (USD1.45 billion) based on April 25's closing price of CHF159.2 per share.
HNA Investment Group Co.'s operating income was CNY287 million last year, down 76.72 percent. Tourist attraction operator HNA Innovation Co. [SHA: 600555], HNA Group's other listed affiliate, had a net loss attributable to shareholders of CNY197 million in 2016, per its earnings preannouncement. It had a net profit of CNY28 billion in 2015.
HNA Group took financial leverage to the extreme, Industrial Securities said in a research report. Debt payments accounted for 66 percent of the group's total assets in 2015, the report said.