AVIC Electromechanical Systems Co.,Ltd. (SZSE:002013) signed an agreement to acquire 70% stake in Nanjing Hangjian Aviation Equipment Technology Service Co., Ltd. from China Aviation Industry Corporation Jincheng Nanjing Electromechanical Hydraulic Engineering Research Center, Wu Xian, Fan Kaihua and Zhang Bingliang for approximately CNY 300 million on December 2, 2019. The final transaction price is subject to the evaluation result confirmed by the state-owned assets supervision and management institution with authority. For the year ended December 31, 2018, Nanjing Hangjian Aviation Equipment Technology Service Co., Ltd. Had total assets of CNY 207.1 million, net assets of CNY 118.9 million, revenue of CNY 143.5 million, operating profit of CNY 48.3 million and net profit of CNY 44.7 million. The transaction is subject to approval from shareholders of AVIC Electromechanical Systems Co.,Ltd. The transaction has been approved by the Board of AVIC Electromechanical Systems Co.,Ltd.