November 29，HNA Holdings issued an announcement，The company’s reorganization is based on HNA Holdings’ existing A shares of approximately 164.3.7 billion shares as the base，The capital reserve fund will be converted into an increase by 10 shares for every 10 shares，About 164 shares transferred.3.7 billion shares。

After transfer，The total share capital of HNA Holdings will increase to 332.4.3 billion shares。164 formed by the aforementioned transfer.3.7 billion shares will not be distributed to original shareholders，All will be distributed and disposed in accordance with the "Reorganization Plan of Hainan Airlines Holdings Co., Ltd. and its ten subsidiaries"。

where，No less than 4.4 billion shares are introduced to strategic investors at a certain price，The stock transfer price will be used first to pay reorganization expenses and pay off part of the debt，The remaining part is used to supplement working capital to improve the company’s operating capabilities；About 120 remaining.3.7 billion shares were paid to some creditors of HNA Holdings and its subsidiaries at a certain price，Used to pay off corresponding debts to resolve the debt risks of HNA Holdings and its subsidiaries、Preserving operating assets、Reduce 188bet app download asset-liability ratio。

Announcement display，The registration date for the conversion of capital reserve funds into equity is December 3, 2021，The ex-rights and dividend date is December 6, 2021，The listing date of the converted share capital is December 7, 2021。The shares transferred this time are all tradable shares without selling restrictions。

Since the conversion of capital reserve into share capital is part of the adjustment of investors’ equity in the reorganization process，Different from the general behavior of simply issuing additional shares for dividends，According to regulations，Adjust ex-rights reference price calculation formula。Based on different situations of the closing price before the ex-rights and ex-dividend date，This time, the company plans to adjust the calculation formula of the ex-rights reference price of A shares as follows:

(1) The closing price of A shares before the ex-rights and ex-dividend date is equal to or lower than 3.08 yuan/share

Ex-rights (dividend) reference price = (previous closing price-cash dividend)÷(1+change ratio of original circulating shares)

where，“Original tradable shares”refers to the A-share tradable shares held by the company’s original shareholders before this transfer。Since no cash bonus is involved，The cash bonus in the formula is 0。At the same time，164 new stocks added this time.3.7 billion A shares will not be distributed to original shareholders，All used to introduce strategic investors and pay off debts。A total of approximately 4.4 billion new shares are used to introduce strategic investors，The consideration per share is 2.80 yuan，The stock transfer price is used to pay reorganization costs and pay off part 188bet app download of the debt；There are about 120 remaining newly added stocks.3.7 billion shares are used to compensate some creditors of HNA Holdings and its subsidiaries，The consideration per share is 3.18 yuan，Used to pay off corresponding debts to resolve the debt risks of HNA Holdings and its subsidiaries、Preserving operating assets、Reduce 188bet app download asset-liability ratio。

The above-mentioned method of paying off debts with shares and introducing shares of reorganized investors have significantly increased the company's net assets，And the consideration for transferring shares is based on the secondary market price of the stock，Taking care of creditors、The interests of the company and the company’s original shareholders and other parties will be determined later，It will be implemented after voting and approval at the company’s creditors meeting and investor group meeting，The value of its stock and the consideration paid are basically balanced，Original shareholders’ equity has not been diluted。Therefore, the transfer of shares and the price are not included in the ex-rights reference price calculation formula。Before and after this transfer，The company’s original circulating shares will not change，That is, the change ratio of the original circulating shares is 0。Therefore，The adjusted ex-rights (dividend) reference price of HNA Holdings’ A-shares is consistent with the closing price of A-shares before the ex-rights and dividends date of capitalization of capital reserves。

(2) The closing price of A shares before the ex-rights and ex-dividend date is higher than 3.08 yuan/share

Ex-rights (dividend) reference price = (previous closing price - cash dividend + price of converting shares to offset debt×The proportion of changes in circulating shares caused by the transfer of shares to offset debts + the price of shares subscribed by reorganization investors×The proportion of changes in circulating 188bet online sports betting shares caused by the subscription of converted shares by reorganization investors)÷(1+the proportion of change in circulating shares caused by the transfer of shares to offset debts+the change in shares in circulation caused by the subscription of shares by reorganization investors+the change in shares in circulation caused by distribution to original shareholders)

Since no cash bonus is involved，The cash bonus in the formula is 0。Given that the closing price of A shares before the ex-rights and ex-dividend date is higher than 3.08 yuan/share，It is necessary to consider the impact of each part's conversion of shares on the stock price: the price of conversion of shares to offset debt is 3.18 yuan/share，The change in the number of circulating shares due to the transfer of shares to offset debts is approximately 120.3.7 billion shares，The change ratio is 12,036,673,928/16,436,673,928；The price of converted shares subscribed by restructuring investors is 2.80 yuan/share，The transfer of shares was subscribed by restructuring investors, resulting in a change in circulating shares of approximately 4.4 billion shares，The change ratio is 4,400,000,000/16,436,673,928；The transferred shares will not be distributed to the original shareholders，The proportion of change in circulating shares caused by distribution to original shareholders is 0。

Based on the closing price of HNA Holdings A shares on November 29, 20211.Until the ex-rights and ex-dividend date，That is, continuous daily limit after expiry，Until the ex-rights and ex-dividend date，The closing price of HNA Holdings A shares will still be lower than 3.08 yuan/share。Therefore，Adjusted formula if applicable，The ex-rights (dividend) price of HNA Holdings A shares will be consistent with the closing price of A-shares before the ex-rights and dividend date when the capital 188bet app download reserve is converted into equity。