China Innovation Aviation (03931) plans to acquire 12.7230% of China Innovation Aviation Technology (Hefei) Co., Ltd.'s shares for 690 million yuan

According to Zhitong Finance App, China Airlines (03931) issued an announcement. On July 28, 2026, the company successfully bid for the underlying shares submitted for sale by the auctioneer, Hefei Beicheng Industrial Investment Guidance Fund Co., Ltd. (12.7230% of the shares of Zhongxin Aviation Technology (Hefei) Co., Ltd., the target company acquired by the Company under the property transfer contract) in a public tender held by the Hefei Property Exchange Center. Based on this, the Company will sign a property rights transfer contract with the seller to acquire the underlying assets at a cash cost of RMB 690 million.

As of the date of this announcement, the Company and the seller held 29.3852% and 70.6148% of the shares in the underlying company, respectively. Since the Company has the right to exercise more than 50% of the voting rights of Hefei Company, the target company is a non-wholly-owned subsidiary of the Company. After the auction is completed, the Company's shares in the target company will increase from 29.3852% to 42.1082%, and the target company will continue to be a non-wholly-owned subsidiary of the Company.

Since its establishment, the Hefei Company has achieved efficient and rapid production line construction and commissioning. After the operation was put into operation, revenue grew steadily, profitability gradually increased, and the balance ratio was manageable. Based on good expectations for the development of the Hefei company, the company participated in this public tender. The completion of this acquisition will further increase the company's shareholding ratio in Hefei.