AECC Aviation Power subsidiary to sell AECC Controls shares

AECC Aviation Power announced that its subsidiary, AECC Southern Industrial Co., Ltd., will transfer up to 25 million shares of AECC Aviation Power Control Co., Ltd. to its controlling shareholder, China Aero Engine Group Co., Ltd. This related party transaction, approved by the board on November 14, 2025, aims to improve AECC Southern Industrial's cash flow and financial health. The transaction will occur via block trade at a price no less than 90% of AECC Aviation Power Control's closing price on the previous trading day.

The shares held by AECC Southern Industrial represent 13.78% of AECC Aviation Power Control's total share capital. The board's independent directors and affected directors recused themselves from the vote. The transaction is not considered a major asset restructuring and, along with other related transactions over the past 12 months, does not exceed 5% of AECC Aviation Power's latest audited net assets, thus not requiring shareholder approval.

AECC Aviation Power Control Co., Ltd., with a registered capital of RMB 131,518.4001 million, reported total assets of RMB 1,646,177 million and net profit of RMB 40,465 million for the first nine months of 2025. The transfer will leverage market pricing, ensuring the transaction aligns with prevailing market conditions.