Bohai Leasing (000415.SZ)'s controlled subsidiary Avolon plans to jointly invest with professional investment institutions to establish a partnership.

Bohai Leasing (000415.SZ) announced that, in order to expand aircraft disposal channels, continuously optimize the company's asset structure, and enhance the company's competitiveness in the global aircraft leasing market, the company's controlled subsidiary Avolon plans to establish Constellation GP and Constellation LP through its subsidiaries together with ISQ Aggregator and Platinum Investor, investment entities managed by I Squared Capital ("ISQ"). Among them, subsidiaries of the company's controlled subsidiary Avolon will, after completion of this transaction, hold 15% equity interests in Constellation GP and Constellation LP respectively. Constellation GP is the sole general partner of Constellation LP. Constellation LP will purchase aircraft leasing assets from channels including but not limited to Avolon's own fleet, and obtain returns through holding and selling aircraft leasing assets. At the same time, Avolon's subsidiaries, as the exclusive aircraft asset management service provider, will provide aircraft asset management services to Constellation LP and charge relevant management fees and commissions. Based on the value of the first batch of 22 aircraft leasing assets with attached leases that Constellation LP plans to purchase from Avolon, the total investment scale of Constellation LP is expected not to exceed US$500 million, and Avolon's investment amount at the 15% equity ratio will not exceed US$75 million. This transaction will help the company expand aircraft asset disposal channels and continuously optimize the aircraft asset structure, thereby improving the overall return level of the asset portfolio; at the same time, by establishing a partnership with international long-term capital, it will unlock the value of the company's professional aircraft asset management, thereby forming diversified income sources such as aircraft asset sale gains, asset management service income, and equity investment income, and enhancing the company's comprehensive profitability.