SHENZHEN INT'L (00152) will not participate in the capital increase of Shenzhen Airlines, causing its stake to be significantly diluted from 49% to 28.09%.

Shenzhen International (00152) announced that its associated company, Shenzhen Airlines, plans to conduct a phased capital increase and expansion, with a total capital increase of RMB 16 billion. The Group has decided not to participate in the capital increase. Shenzhen Airlines has successfully introduced Shenzhen Kunhang Investment Enterprise (Limited Partnership) as a new investor through public listing, and the capital increase agreement and related documents were signed on December 18, 2025. Accordingly, Air China Limited and Kunhang Investment will respectively contribute approximately RMB 2.082 billion and RMB 2 billion to subscribe for the new registered capital of Shenzhen Airlines. After the completion of the first phase of the capital increase, the Groups equity in Shenzhen Airlines will be diluted from 49% to approximately 28.09%. Air China Limited and Kunhang Investment will hold 51% and approximately 20.91% of the equity in Shenzhen Airlines, respectively, with Shenzhen Airlines continuing to be an associated company of the Group. Air China Limited and Kunhang Investment will sign relevant agreements for further capital increases as appropriate, and the Groups equity in Shenzhen Airlines is expected to be further diluted.