Chen Feng (businessman)
Chen Feng | |
|---|---|
| Born | June 5, 1953 Huozhou, Shanxi, China |
| Occupation | Entrepreneur |
| Known for | Founder of HNA Group and Hainan Airlines |
Chen Feng (; born June 5, 1953) is a Chinese entrepreneur and the original founder of the now-defunct conglomerate HNA Group as well as Hainan Airlines. He was featured on the Forbes China Rich List in 2017 with an estimated net worth of $1.69 billion but was absent from the list by 2018.
Early life and education
Chen was born in Huozhou, located in Shanxi province, and grew up in Beijing as the child of mid-ranking officials within the Communist Party. During the Cultural Revolution, he served in the People's Liberation Army Air Force stationed in Sichuan. After 1979, Chen took roles within the Civil Aviation Administration of China and the National Air Regulations Bureau. In 1984, he received a scholarship to attend Lufthansa College of Air Transportation Management in Germany. By 1989, he was employed at the World Bank's loan office in Haikou and later acted as Aviation Business Assistant to Hainan's Provincial Governor, as the region experienced rapid tourism growth.
He continued his academic pursuits by obtaining an MBA from the Maastricht School of Management in 1995 and completed executive education at Harvard Business School in 2002.
Career
Following an unsuccessful attempt by Hainan Province to launch a regional airline, Chen was appointed to bring in private sector expertise and funding. He successfully raised 250 million yuan (approximately US$31.25 million), with contributions consisting of 75% from 24 institutional investors, 20% from company employees, and 5% from the Hainan government. In 1993, Chen established Hainan Airlines Company Limited, which became China's first joint-stock airline. After the 1997 Asian financial crisis severely affected Hainan’s tourism-dependent economy, the airline underwent recapitalization by the provincial government, restructuring, and was renamed Hainan Airlines (HNA) Company, Ltd. In 1995, investor George Soros acquired a $25 million stake representing 14.8%, becoming the largest shareholder.
Hainan Airlines
In 2000, Chinese authorities required the creation of three primary domestic carriers: Air China Ltd., China Eastern Airlines Corp, and China Southern Airlines, which accelerated Chen’s expansion efforts. That same year, Chen partnered with Wang Jian to establish HNA Group as a holding company. Through this platform, they acquired Xi’an-based Chang'an Airlines in August 2000, followed by purchases of China Xinhua Airlines and Shanxi Airlines in 2001. In August 2001, Hainan Airlines merged with Haikou-based Meilan International Airport. Despite these strategic moves, by 2012 Hainan Airlines remained China's fourth-largest airline with a market share of around 15%.
In June 2006, Chen founded Grand China Airlines Holdings to consolidate HNA Group’s airline assets—which then included a fleet of approximately 100 aircraft and assets valued at about 30 billion yuan (US$3.75 billion)—enabling HNA Group to expand into additional industries. At that time, Chen owned a 32.75% share of Grand China Airlines Holdings. By 2012, HNA Group reported revenues totaling US$17.5 billion and pre-tax earnings of US$837 million. The organizational structure of the group is notably intricate.
HNA Group
Chen significantly grew HNA Group by pursuing an assertive acquisition strategy, branching out into sectors such as logistics, retail, real estate, tourism, and financial services. In 2014, he forecasted: "By 2020, we aim to rank among the top 100 enterprises globally, and by 2030, within the top 50... Assets in the U.S. and Europe remain undervalued, and we will persist in acquiring them. It is essential for China to develop world-class companies to drive growth, with HNA positioned to be one of them."
At its zenith, HNA possessed the largest shareholding in Deutsche Bank. By 2015, the conglomerate held stakes in 11 publicly traded firms, generating revenues of RMB 190 billion (approximately $25.6 billion USD), assets totaling RMB 600 billion, and employing over 180,000 individuals worldwide.
In May 2017, HNA’s shares plunged by 16.7% amid reports suggesting internal disputes among Chinese leadership circles; however, no direct link was established.
On September 24, 2021, Hainan police announced that chairman Chen Feng and CEO Adam Tan had been detained on suspicion of criminal activities. Despite this development, the company affirmed that its operations continued without disruption. Subsequently, under a bankruptcy court directive, HNA Group was segmented into four entities; among them, Liaoning Fangda Group Industrial Company Ltd., engaged in carbon, steel, and pharmaceutical industries, pledged to invest in the airline business.
Personal life
Chen practices Buddhism and refrains from both alcohol consumption and smoking.