Core Viewpoint - Hainan Airport has undergone a significant transformation from bankruptcy restructuring to focusing on its core airport business, marking a "rebirth" and a strategic shift towards becoming a major airport operation group in Hainan [2][3][9]. Group 1: Business Transformation - The company transitioned from a diversified investment model to a focused airport operation model, shedding non-core assets and restructuring its revenue streams [7][8]. - As of 2024, the revenue from airport management has increased to 41.66%, nearly doubling from 21.22% in 2020, while real estate revenue has decreased to 20.97% from 62.76% [8]. - The company aims to unify operations across three major airports in Hainan, targeting over 50% of revenue from airport operations post-acquisition of Meilan Airport [9]. Group 2: Strategic Development - Hainan Airport is shifting from a "point" mindset to an "ecosystem" approach, focusing on enhancing passenger flow and connectivity through new international routes [10][12]. - The airport has opened 79 international passenger routes covering 21 countries and 39 cities, with a 30% increase in route numbers and a 31% increase in passenger throughput compared to 2024 [12]. - Infrastructure expansion projects are underway, including the T3 terminal at Sanya Phoenix Airport and T2 terminal at Qionghai Boao Airport, expected to enhance passenger capacity significantly [13][14]. Group 3: Economic Integration - The company is leveraging the Hainan Free Trade Port policies to enhance its duty-free business, currently operating five duty-free stores with a total area of approximately 81,000 square meters, accounting for 17% of the island's duty-free sales [22][23]. - Future expansions will include a 15,000 square meter increase in commercial space at Sanya Phoenix Airport, aiming to create a vibrant duty-free shopping experience [23]. - Hainan Airport is also developing a low-altitude economy, establishing a comprehensive service model for low-altitude flight users and enhancing logistics efficiency through innovative airport logistics solutions [24][18]. Group 4: Policy and Future Outlook - The Hainan Free Trade Port is set to officially launch its full island closure operation on December 18, 2023, which will facilitate smoother flows of people, goods, and capital [20][22]. - The company is positioned as a key player in the implementation of new policies such as the seventh freedom and visa-free entry, enhancing its role in global resource allocation [20][22]. - The next five years are expected to see significant benefits from the closure operation, with the potential for Hainan Airport to expand its influence beyond traditional aviation services [27].