China, Estonia, Investments, Transport

International Internet Magazine. Baltic States news & analytics Saturday, 23.10.2021, 21:39

Magnetic MRO loss increases 15-fold in Q2

BC, Riga, 05.08.2020.Print version
Magnetic MRO, an aviation maintenance company headquartered in Estonia and owned by China's Guangzhou Hangxin Aviation Technology, saw its revenue decrease by approximately a half year-on-year to 12.6 million euros in the second quarter of 2020, however, the company's loss increased more than 15 times to 433,000 euros.

"COVID-19 crisis has had a major and rapid impact on the aviation sector overall. The countries wide lockdown, thus a sharp drop in the number of travelers starting March-April, had stopped most of the flights and thus cash inflow for our main customers. Respectively, Magnetic MRO's business activity was decreased almost by three-fold compared to January and the number of debtors started to increase as rapidly having a major negative impact on the company cash flow," the company told the stock exchange.

In June, MAC Aero Interiors, a subsidiary of Magnetic MRO, received approval from Airbus to start producing interior elements for Airbus aircraft in their production facility located in Estonia.

In May, Magnetic MRO AS increased its share capital by 172,524.80 euros and issued 26,957 new shares for the issue price of 8,000,000 euros to Hongkong Yongtai Trading Services Co., Limited, a Hong Kong company, in accordance with the investment agreement entered into on June 5, 2019.

The investor subscribed for the shares to the maximum extent prescribed in the investment agreement. After the subscription for the new shares, the amount of the registered share capital of Magnetic MRO AS is 1,283,200 euros and the total number of shares is 200,500.

Bonds of Magnetic MRO are traded on Nasdaq Baltic First North market. 

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