Shenzhen Airlines secures 4bn yuan initial equity financing

Air China Limited announced the progress of Shenzhen Airlines' equity financing, with the initial phase securing 4.082bn yuan. Shenzhen Kunhang Investment Partnership has been identified as an eligible investor. Kunhang Investment will contribute 2bn yuan for a 20.9134% equity interest in Shenzhen Airlines post-capital increase.

Concurrently, Air China will participate in the initial financing by contributing 2.082bn yuan, maintaining its 51% equity interest in Shenzhen Airlines. This capital injection aligns with the valuation report from China Enterprise Appraisals Co., Ltd., which set Shenzhen Airlines' shareholders' equity at 5,481,608,749.06 yuan as of September 30, 2024. The total registered capital of Shenzhen Airlines will increase to 9,351,082,184.24 yuan after the initial financing.

Upon completion, Air China will retain 51% equity, Shenzhen International Logistics will hold 28.0866%, and Kunhang Investment will hold 20.9134%. The corporate governance structure and control of Shenzhen Airlines will remain unchanged, with Air China continuing as the controlling shareholder. The parties plan to sign further agreements for subsequent financing stages, ensuring Air China's 51% equity remains consistent.