CALC Announces Strategic Cooperation
with Moutai Leasing and CCB (Shanghai Pilot Free Trade Zone Sub-branch)
Join forces to Strengthen Professional Aircraft Asset Management Capabilities
20 May 2020
Hong Kong, 20 May 2020 - China Aircraft Leasing Group Holdings Limited ("CALC" or the “Group”; SEHK stock code: 01848), a full value chain aircraft solutions provider for the global aviation industry, is pleased to announce today the official signing of a strategic cooperation agreement with Moutai Financial Leasing Co., Ltd. (“Moutai Leasing”) and China Construction Bank Corporation Shanghai Pilot Free Trade Zone Sub-branch (“CCB”). The three parties will capitalise on the respective professional edges of one another to establish a close-knit cooperative partnership for the long term in the aviation industry chain, facilitating the development of aviation finance industry in China.
With this strategic partnership, the three parties will explore cooperation opportunities in aircraft leasing, aircraft components leasing and aviation funds for China-made aircraft, among others. CALC and Moutai Leasing target to seal leasing transactions for at least 20 aircraft in the next three years. While CALC will be responsible for providing aircraft asset management services, CCB, as a financier, will be providing all-round financial services. This cooperation will exploit synergies with the asset-light model that is being progressed consistently by CALC, seeking to enhance the fund-raising capability of the corporate platform while strengthening the Group’s role as a professional aircraft asset manager on an ongoing basis.
Mr Mike POON, Chief Executive Officer of CALC said, “Covid-19 is impacting on all walks of life and is testing the capabilities of all businesses. However, the crisis has gone short of pulling the brake on CALC’s development. With our asset quality, business model, professional management capabilities, development prospects, we responded proactively and has won the trusts and recognitions from partners in many industries. With its strong shareholder backing from Moutai Group, Moutai Leasing is well-equipped to capture the opportunities along the increasing professionalism in aviation financing, while CCB rides on its position as a state-owned commercial bank in flagging the development of innovative financial products. We are honored to be able to cooperate with these two outstanding enterprises. This is also a testament of our efforts in complementing respective edges of the leading players in various industries to create win-win outcomes, thanks to our strong market resources and asset disposal experiences. Supported by our respective shareholders and our industry expertise, we are set to manage market risks and boost our returns together. ”
Jiang Yan, Chairman of Moutai Leasing, said, “Being a wholly-owned subsidiary, Moutai Leasing is a major financial service arm of Moutai Group that boasts strong state-owned background. The Group plans to groom aircraft leasing a key business platform and extend solid backing to its development. This partnership represents a proactive resonance to the Group’s aspirations in grooming Moutai’s financial services towards a stronger and more professional development in the longer term. Moutai Leasing will capitalize on this cooperation to enrich its financing structures and rebalance its asset portfolio. Meanwhile, it will make capital turnover more effective as it becomes part of the aviation finance ecosystem, thereby taking the core competence of the Group’s financial business segments to the next level.” Moutai Group is a Chinese state-owned enterprise which runs the distillery of the national liquor “Moutai”. Moutai currently sells over 200 tons of Moutai to over 100 countries and regions around the world and the spirit is served at all Chinese state banquets. Revenue of Moutai liquor business reached RMB88.9 billion in 2019.
China Construction Bank has been a valuable partner to CALC for many years, and was deeply engaged in the launch the lessor’s IPO, arranging pre-delivery payments for aircraft procurement, project financing, fund establishment and debt issuances. This latest cooperation is expected to consolidate the long-term, bank-enterprise partnership and achieve win-win results.
CALC is committed to nurturing well-being in the aviation financial ecosystem. Collaboration with other leasing companies has become an integral effort for the Group in achieving professional asset management and financing channel diversification. In 2018, CALC established a joint venture with two domestic leasing companies to undertake lease-attached aircraft portfolio transactions. In 2019, the Group joined forces with a leasing arm of a major state-owned carrier to handle a cross-border aircraft transaction that disposed of four retired aircraft and subsequently sold all components after disassembly.