China Southern Airlines Company Limited announced that it has entered into a private placement of not more than 5,436,269,319 A shares for proceeds of not more than CNY 17,500,000,000 and 855,028,969 H shares for proceeds of not more than CNY 2,633,693,000 for aggregate gross proceeds of not more than CNY 20,133,693,000 on May 31, 2023. The transaction included participation from 35 investors including China Southern Air Holding Company Limited for minimum CNY 5,000,000,000 to CNY 10,000,000,000 of class A shares and Nan Lung Holding Limited for 855,028,969 new H Shares. The shares to be issued are subject to lock-up of 36 months.

The A share subscription price shall not be lower than a price determined as higher of 80% of the average trading price of the A shares as quoted on the Shanghai Stock Exchange in the 20 trading days immediately prior to the price benchmark date for the new A shares, and the latest audited net asset value per share attributable to equity shareholders of the company. The completion of the A shares subscription agreement will take place when the Shanghai branch of the China Securities Depository and Clearing Corporation Limited confirms that the new A shares have been subscribed and the registration has been completed. The completion of the H shares subscription agreement will complete after the completion of the registration procedures at the relevant registration authority upon issue of H shares.

The transaction has been approved in the 15th meeting of the 9th directorate and the 14th meeting of the 9th supervisory board and the issue of A shares and H shares is subject to approval of independent shareholders at extraordinary general meeting and class meetings, board of directors of China Southern Air Holding Company Limited and Nan Lung Holding Limited, and approval of China Securities Regulatory Commission and Civil Aviation Administration of China Central and Southern Regional Administration, the Shanghai Stock Exchange and The Stock Exchange of Hong Kong Limited.