China Avionics Systems expands presence in airborne systems with acquisition

China Avionics Systems (SSE:600372) announced the acquisition of a 59.1816% stake in Aviatrix Huabo (Shenzhen) Airborne Systems Industry Investment Partnership (Limited Partnership) from Aviation Investment for 202,105,702.57 yuan. This move aims to integrate industrialization assets and Shanghai AVIC, broadening the company's reach in chip design, servo valves, and radar, thereby bolstering its core competitiveness and optimizing the airborne industry chain. The transaction is a related party transaction, as both Aviation Investment and China Avionics Systems are controlled by Aviation Industry Corporation of China, Ltd. (AVIC).

The acquisition follows the approval of a "Withdrawal and Partner Status Conversion Agreement" for Beijing Aviatrix, which will reduce Aviatrix Huabo's capital to 490 million yuan. Upon completion, China Avionics Systems will hold a majority voting stake in Aviatrix Huabo, gaining actual control. The company will implement a liquidation and dissolution plan for Aviatrix Huabo within two years post-acquisition to consolidate its equity holdings in five underlying companies.

In parallel, China Avionics Systems’ board also approved its 2026 annual related party transactions, including buying and selling goods, providing and receiving services, and financial services with AVIC-controlled entities. The company has also revised several internal governance policies, including those related to related party transactions, independent directors' work, and information disclosure, to enhance transparency and compliance. A shareholder meeting is scheduled for December 29, 2025, to finalize these decisions.