Aerospace Hi-Tech Electronic plans strategic asset swap

China Aerospace Times Electronics (Aerospace Hi-Tech) announced plans for a major asset swap, as detailed in a notification received from its controlling shareholder. The transaction involves the proposed exchange of several assets and equities between Aerospace Hi-Tech and its subsidiaries, and entities managed by its controlling shareholder. Key elements include the swap of 67% equity in Xi'an Taiyi Electronics Co., Ltd. for 100% equity in Beijing Aerospace Xinghua Technology Co., Ltd., and various technical renovation assets and related business assets.

The proposed transaction, which constitutes a connected transaction, is currently in the planning stage. The total book value of the assets involved is estimated to be approximately 800 million yuan to 1 billion yuan. The final transaction price will be determined based on the assessed net asset values after due diligence, auditing, and appraisal. Any differences in value will be settled with cash payments.

Aerospace Hi-Tech anticipates that this asset swap will not constitute a major asset reorganization under relevant regulations. The company aims to focus on its electronic information and unmanned systems equipment businesses, optimize its asset structure, and enhance profitability. The transaction remains subject to various approvals, including from state-owned asset management bodies, industry regulators, and the company's board and shareholders.