AviChina subsidiary acquires majority stake in airborne systems investor

AviChina Industry & Technology Company Limited announced that its non-wholly owned subsidiary, AVIC Airborne, will acquire 59.1816% of the partnership interest in AIC Yuhua from AVIC Industry Investment. The preliminary consideration for this acquisition is RMB202,105,702.57. This strategic move aims to enhance the group's airborne business chain and leverage synergistic effects.

AVIC Airborne will make an initial payment of RMB40 million in two installments, with the remaining consideration paid within 10 business days after the Partnership Interest Transfer Agreement takes effect. The consideration was determined based on an appraisal value as of 30 June 2025, using an asset-based approach. The acquisition constitutes a connected transaction under Chapter 14A of the Listing Rules, subject to reporting and announcement requirements but exempt from circular and independent shareholder approval due to percentage ratios.

Upon completion, AVIC Airborne will hold majority voting rights in AIC Yuhua, making it a subsidiary. The acquisition is expected to improve the aviation ancillary system industry chain, enhance synergies with research institutes, and strengthen the core competitiveness of AviChina's aviation airborne products.