AECC Aviation Power (600893.SH) plans to take a stake in China Aero-Engine Gas Turbine Co., Ltd.

AECC Aviation Power (600893.SH) announced that China Aviation Gas Turbine Co., Ltd. (hereinafter referred to as Gas Turbine Company) is the only domestic gas turbine research and development and manufacturing enterprise with independent intellectual property rights. Gas Turbine Company has industry-leading comprehensive energy solution capabilities, relying on a complete research and development manufacturing industry chain of aero engines, forming an independent and efficient gas turbine technology innovation, quality control, customer service, and operation management system. In order to quickly promote the marketization and industrialization of the gas turbine business and to establish a closer strategic synergy with Gas Turbine Company, as well as to deeply participate in the development of the gas turbine industry and share the dividends of future civil gas turbine industry development, the company and its wholly-owned subsidiary, Dawn Company, respectively plan to increase their capital by 20 million yuan through a non-public agreement to Gas Turbine Company. After the capital increase, the company and Dawn Company collectively hold approximately 2% of the equity stake in Gas Turbine Company. In this round of capital increase and expansion of Gas Turbine Company, the company and Dawn Company will participate through a non-public agreement. At the same time, Gas Turbine Company will introduce an investment of 10 million yuan from interested parties based on the evaluation value in the property rights trading institution. The price at which the company and Dawn Company increase their capital to Gas Turbine Company will ultimately be consistent with the capital increase price of the interested parties publicly solicited by Gas Turbine Company.