AVIC Airborne Systems Co., Ltd. entered into an agreement to acquire AVIC Guiyang Aviation Electrical Machinery Co., Ltd from AVIC Electromechanical Systems Co.,Ltd. (SZSE:002013) on December 2, 2019. As of December 31, 2018, AVIC Guiyang Aviation Electrical Machinery reported total assets of CNY 1.6 billion and net assets of CNY 266.1 million. For the year ended December 31, 2018, AVIC Guiyang Aviation Electrical Machinery reported revenue of CNY 586.3 million, operating loss of CNY 25.2 million and net loss of CNY 25.6 million. The transaction is subject to approval from the non-affiliated shareholders of AVIC Electromechanical Systems. The transaction has been approved by the Directors of AVIC Electromechanical Systems in the 32nd meeting.