AVIC Heavy Machinery Co., Ltd. (SHSE:600765) signed the share transfer agreement to acquire 80% stake in Shandong Hongshan Aviation Forging Co., Ltd. from Shandong Nanshan Aluminium Co.,Ltd. (SHSE:600219) for approximately CNY 260 million on June 2, 2023. As of July 31, 2023 AVIC Heavy Machinery Co., Ltd signed Supplementary agreement to the transfer agreement to acquire CNY 1.31 billion. As of March 31, 2023, Shandong Hongshan Aviation Forging reported total assets of CNY 1.599 billion, net asset of CNY 1.597 billion, revenue of CNY 38 million and net loss is CNY 0.4849 million.

Transaction is already approved by AVIC Heavy Machinery board of director's. Shandong Hongshan Aviation's board of directors approved the acquisition. As of October 18, 2023, the transaction price is made in three installments, the first is CNY 262.4 million, second installment is for 80% of the final equity transfer price minus the prepayment. The amount is CNY 791.99 million.

The third installment the equity transfer payment is 20% amounting is CNY 263.59 million. Payment shall be made by the buyer within 5 working days after fulfilling all the terms or upon the seller?s exemption.