China Aerospace Times Electronics moves forward with major asset swap

China Aerospace Times Electronics Technology Co., Ltd. announced progress on a significant asset swap, involving multiple subsidiaries and a related party. The transaction, valued at an estimated 940.0952 million yuan, is a connected transaction requiring shareholder approval as its scale, combined with other recent connected transactions totaling 417.3520 million yuan, exceeds 5% of the company's prior year-end audited net assets. The company aims to consolidate its focus on aerospace electronic information and unmanned systems.

The asset swap includes three main components: a 100% equity swap of Aerospace Xinghua Company for a 58% stake in Xi'an Taiyi Company, a swap of business assets related to cryptography and information security from Aerospace Rocket Company for technical renovation assets from Beijing Remote Sensing Institute, and a swap of deep space exploration business assets from Shanghai Aerospace Company for technical renovation assets from Shanghai Scientific Instrument Factory. Cash will be used to cover any differences in asset values.

This strategic move is expected to optimize the company's asset structure, improve asset quality, and reduce its debt ratio by divesting assets with limited development prospects and long payback periods, while acquiring assets that are highly synergistic with its core business. The transaction is not expected to constitute a major asset reorganization or affect the company's equity structure.