Beijing AviChina Phrase I Aviation Industrial Investment Fund (Limited Partnership) entered into transfer agreement to acquire 35.26% stake in AVIC Nanjing Servo Control Systems Co., Ltd from AviChina Industry & Technology Company Limited (SEHK:2357) for CNY 258.36 million on February 10, 2023. In related transaction, Beijing AviChina Phrase I Aviation Industrial Investment to acquire 10.00% equity interests in AVIC Nanjing Technology, 19.19% equity in AVIC Jincheng Unmanned Systems Co., Ltd, 18.44% equity interests in AVIC Laser, 23.4481% equity interests in AVIC GYRO, 33.00% equity interests in AVIC ATM System and 9.44% of the total share capital of AVIC New Materials. As of December 31, 2022, AVIC Nanjing Servo Control Systems reported net profit before tax of CNY 75.60901271 million, net income of CNY 68.5568769 million and net assets of CNY 634.17435861 million.

The board of directors of AviChina Industry & Technology Company Limited approved the transaction at the extraordinary general meeting. The board intends to apply the net proceeds from the disposals as general working capital to support and enhance the business development of AviChina Industry & Technology Company. The deal is expected to close within 10 working days.