Air China plans to sell 2 engines and 1 APU to Guohang Air for a transaction price of 151 million yuan.

Air China announced on July 29th that it plans to sell 2 spare Trent700 engines and 1 spare GTCP331-350C APU to China International Cargo Airlines Co., Ltd. The selling price is 151 million yuan. This transaction constitutes a related-party transaction, but does not constitute a major asset restructuring. The transaction price is determined by valuation. The main reason why the book value of the assets is higher than the valuation value is that the book value of the target assets mainly consists of the net value before the last major repair and the capitalized major repair costs.