Air China (00753) announced that on January 5, 2026 (after market close), the company, its wholly-owned subsidiary Easerich Investments Inc. (Easerich), and Morgan Stanley & Co. International PLC (the Placing Agent) entered into a share placing agreement. Easerich intends to sell 108.08 million Cathay Pacific shares it holds through the Placing Agent at a price of HK$12.22 per share, representing approximately 1.61% of the total issued shares of Cathay Pacific as of the date of this announcement.

The share sale is expected to be completed on the second business day after all conditions set forth in the placing agreement are satisfied or waived by the Placing Agent, but in any event no later than January 8, 2026, or another date agreed upon in writing by Easerich and the Placing Agent.

Based on calculations by the company's finance department, this share sale is expected to generate a pre-tax profit of approximately RMB 182 million (excluding the impact of transaction costs, other comprehensive income, value-added tax, and surcharges; and using an exchange rate of HKD 1 to RMB 0.90141). The final figure will be subject to the company's audited financial statements.

Immediately following the completion of this share sale, and assuming no other changes to the total issued shares of Cathay Pacific, the company, through its wholly-owned subsidiary, will hold 1,822,436,334 Cathay Pacific shares, representing approximately 27.11% of Cathay Pacific's total issued share capital.