China Avionics Systems updates financial management regulations

China Avionics Systems Co., Ltd. (AVIC) has formalized new management methods for raised funds, related party transactions, and external guarantees, all approved by its Fourth Extraordinary Shareholders' Meeting of 2025 on October 17, 2025. The "Management Methods for Raised Funds" emphasize prudent use of capital, requiring special accounts for raised funds and strict approval procedures for expenditures. The company commits to transparent disclosure of capital utilization, with specific guidelines for cash management of idle funds and changes to investment projects.

The updated "Related Party Transaction Management Methods" define associated parties and transaction types, mandating detailed disclosure and approval processes for all significant related party transactions to ensure fairness and protect shareholder interests. This includes thresholds for board and shareholder approval, with specific rules for financial services agreements and asset purchases or sales involving related parties.

Furthermore, the "External Guarantee Management Methods" establish rigorous procedures for providing external guarantees, particularly for subsidiaries, with clear investigation requirements for guaranteed parties and detailed approval tiers based on guarantee amounts and ratios to net assets and total assets. Guarantees exceeding 30% of total assets or for parties with debt-to-asset ratios over 70% require shareholder approval, underscoring a commitment to risk control and financial security.