Shanghai AJ Group Co., Ltd. (SHSE:600643) signed a letter of intent to acquire Shanghai Huarui Financial Leasing Co., Ltd from Juneyao Airlines Hong Kong Co., Ltd and Juneyao Airlines Co., Ltd (SHSE:603885) for CNY 1.5 billion on January 23, 2017. Under the terms, the consideration will be paid in 2 installments. The first installment will be paid within 3 months since signing of the agreement and the second one will be paid within 30 days since completion of delivery of underlying equity. Shanghai AJ Group Co., Ltd will fund 25% of the consideration from the proceeds of CNY 379.7 million raised through capital increase in AJ (Hong Kong) Co., Ltd. The transaction still needs approval from the shareholders of the Shanghai AJ Group Co., Ltd at the General Shareholders Meeting and the internal decision making units of the 2 counterparties. The transaction is approved by the Board of Directors of Shanghai AJ Group Co., Ltd at the 27th meeting of the 7th directorate. The transaction is approved by the shareholders of Shanghai AJ Group Co., Ltd. on May 31, 2018.

Shanghai AJ Group Co., Ltd. (SHSE:600643) completed the acquisition of Shanghai Huarui Financial Leasing Co., Ltd from Juneyao Airlines Hong Kong Co., Ltd and Juneyao Airlines Co., Ltd (SHSE:603885) on September 29, 2017. Shanghai Aj Group Co.,Ltd has successively paid an equity transfer amount of approximately CNY 570 million and remaining approximately CNY 950 million will be paid in accordance with the equity transfer agreement.