China Eastern Airlines Corporation Limited (00670) has announced that its wholly-owned subsidiary, Eastern Import & Export, will transfer 49% of the equity interests in Shanghai Eastern Supply Chain Management Co., Ltd. (Eastern Supply Chain) to Eastern Logistics (601156.SH). The transfer price is approximately RMB199.8465 million, based on an appraised value of around RMB407.85 million for the entire shareholders’ equity of Eastern Supply Chain.

According to the announcement, Eastern Supply Chain specializes in supply chain services such as handling aircraft engines, aviation materials, and large precision instruments. For the first half of 2025, Eastern Supply Chain recorded a net profit after tax of about RMB18.05 million. In 2024 and 2023, its net profit after tax was roughly RMB34.68 million and RMB32.70 million respectively. As of 30 June 2025, it reported total assets of RMB2,207.08 million and net assets of RMB1,476.64 million. The transaction is expected to yield a gain of around RMB83 million for the listed company.

The transfer has been deemed a connected transaction under Hong Kong Listing Rules, as Eastern Logistics is controlled by CEA Holding, the controlling shareholder of China Eastern Airlines. Upon completion, Eastern Supply Chain will become a wholly-owned subsidiary of Eastern Logistics. The proceeds from the transaction are intended to support China Eastern Airlines’ core operations, enhancing operational focus and leveraging the specialized logistics advantage of Eastern Logistics.