In order to seize the opportunity of the establishment of a pilot free trade zone and a free trade port with Chinese characteristics and the construction of an international tourism consumption hub in Hainan, and to give full play to the unique advantages of air transportation, China Eastern Airlines Corporation Limited, Hainan Communications Investment Holdings Co., Ltd. (“Hainan Communications”), Sanya Development Holdings Co., Ltd. (“Sanya Development”), Juneyao Airlines Co., Ltd. (“Juneyao Airlines”) and Ctrip Travel Network Technology (Shanghai) Co., Ltd. (“Ctrip Travel Network Technology”) (collectively, the “Transaction Parties”, and each, a “Transaction Party”) intend to jointly establish “Sanya International Airlines Co., Ltd.” (tentative name, subject to the pre-approval registration of the name) (“Sanya International Airlines”), being a subsidiary controlled by the Company, in Hainan. To this end, upon friendly negotiations, the Transaction Parties have decided to actively promote this project and entered into the Cooperation Framework Agreement for the Joint Establishment of Sanya International Airlines Co., Ltd. (the “Cooperation Framework Agreement”). The Cooperation Framework Agreement is the result of negotiations on cooperation intentions and cooperation principles.

The Company expects that the promotion and implementation of the specific cooperation project under the Cooperation Framework Agreement will have a positive impact on the future business development of the Company. The details of the cooperation project under the framework agreement are subject to further negotiations and agreement among the Company and the Transaction Parties pursuant to the procedures stipulated by relevant laws and regulations, and may be adjusted or improved. The Cooperation Framework Agreement is the guidance document for the cooperation among the Company and other Transaction Parties and is a framework and intentional agreement of the cooperation intentions and cooperation principles of the parties.

The underlying cooperation or specific cooperation matters such as the relevant cooperation arrangement and rights and obligations stipulated under the Cooperation Framework Agreement are subject to further negotiations and agreement among the parties, and may be adjusted or improved. The implementation of the specific cooperation project under the Cooperation Framework Agreement is subject to the approval of the board of directors and general meeting (if necessary) of the Transaction Parties and relevant governmental regulatory authorities.