Air China Limited (00753) plans to issue new A shares to China Aviation Group and China Aviation Holdings for fundraising of no more than 20 billion yuan.

Air China Limited (00753) announced that on October 30, 2025, the Board of Directors approved the issuance of A shares to specific parties. Accordingly, the company has entered into subscription agreements with China Aviation Group and China Aviation Holdings to issue a total of no more than 3,044,140,030 new A shares (including this number) at the issuance price of RMB 6.57 per share. It is expected to raise a total amount of funds (before deducting related issuance costs) not exceeding RMB 20.0 billion (including this number). China Aviation Group intends to subscribe for no less than RMB 5.0 billion; China Aviation Holdings intends to subscribe for no more than RMB 15.0 billion. The announcement stated that through this issuance, the company's asset-liability structure will be significantly improved, further enhancing the overall operational efficiency and safety level of the fleet, improving the route network layout, strengthening the route coverage of major national regional development strategies and "Belt and Road" markets, and consolidating the company's core competitive advantages in the aviation transportation sector. The funds raised from this issuance are intended to be used to repay debts and supplement working capital, helping the company control the scale of interest-bearing debts, optimize the asset-liability structure, enhance financial stability; and simultaneously strengthen the company's capital strength, ensure the funding requirements for business development, enhance profitability and risk resilience, and provide strong support for the company's high-quality development. In addition, the issuance is fully subscribed by the controlling shareholders China Aviation Group and its holding subsidiary China Aviation Holdings, further increasing the holding of the company's shares by the controlling shareholders, helping the company achieve high-quality development, demonstrating their firm confidence in the company's future development, conveying recognition of the company's value, and benefiting to boost market confidence, protect the interests of the company's small and medium-sized shareholders.