AVIC Electromechanical Systems Co., Ltd. (SZSE:002013) agreed to acquire 72.55% stake in Yibin Sanjiang Machinery Co., Ltd from Aviation Industry Corporation of China and AVIC Electromechanical Systems, Inc for approximately CNY 180 million on August 1, 2017. AVIC Electromechanical Systems Co., Ltd. (SZSE:002013) signed a stake acquisition agreement with Aviation Industry Corporation of China and AVIC Electromechanical Systems, Inc. on August 7, 2017. Under the terms, AVIC Electromechanical Systems Co., Ltd will pay CNY 15.9 million to Aviation Industry Corporation of China and CNY 166.98 million to AVIC Electromechanical Systems Inc. On March 27, 2018, AVIC Electromechanical Systems Co., Ltd. (SZSE:002013) signed the supplementary agreement to the conditional to acquire 72.55% stake in Yibin Sanjiang Machinery Co., Ltd from Aviation Industry Corporation of China and AVIC Electromechanical Systems, Inc. for approximately CNY 190 million. Under the revised terms, AVIC Electromechanical Systems Co., Ltd will pay CNY 16.3 million to Aviation Industry Corporation of China and CNY 172.1 million to AVIC Electromechanical Systems, Inc. In related transaction, AVIC Electromechanical Systems Co., Ltd. (SZSE:002013) agreed to acquire Xinxiang Aviation Industry (Group) Co., Ltd from AVIC Electromechanical Systems Inc for approximately CNY 670 million. AVIC Electromechanical Systems Co., Ltd will use self-raised funds to fund the transaction and will just swap the proceeds raised in the public offering of convertible bonds after the completion of the public offering. Post acquisition, Yibin Sanjiang Machinery Co., Ltd will become wholly-owned subsidiaries of the AVIC Electromechanical Systems Co., Ltd. The transaction has been approved by the Board of Directors of AVIC Electromechanical Systems Co., Ltd at 7th session and 10th session of the 6th directorate meeting and shareholders of the AVIC Electromechanical Systems Co., Ltd.’s at 2017 3rd extraordinary general meeting. AVIC Electromechanical Systems Co., Ltd. (SZSE:002013) completed the acquisition of 72.55% stake in Yibin Sanjiang Machinery Co., Ltd from Aviation Industry Corporation of China and AVIC Electromechanical Systems, Inc on April 3, 2018.