AviChina Industry & Technology Company Limited (Stock Code: 2357) reported that on 6 February 2026, its non-wholly owned subsidiary, Keeven Aviation Instrument, entered into two equity transfer agreements to acquire an aggregate 10% shareholding in AVIC Jierui. The sellers are Aviation Industrial Fund and Ruitexin. The total consideration amounts to RMB58 million, divided into RMB21.9269 million for a 3.7805% stake and RMB36.0731 million for a 6.2195% stake.

According to AviChina, AVIC Jierui specializes in fiber optic gyroscope technology with a robust product line. The transaction is intended to enhance synergies in research, development, and production along the Group’s airborne industry chain. Upon completion, Keeven Aviation Instrument will hold 10% of AVIC Jierui, which remains a non-wholly owned subsidiary of its major shareholder, AVIC.

Financial disclosures reveal that AVIC Jierui’s net profit before taxation under the China Accounting Standards for Business Enterprises reached RMB54.43 million in 2024 and RMB53.55 million in 2023. Its audited net assets stood at RMB369.91 million as of 31 March 2025, while the valuation placed total shareholders’ equity at RMB619 million, primarily derived from the income approach.

The Board of AviChina has approved the deal, which qualifies as a connected transaction under Chapter 14A of the Listing Rules. Since the applicable percentage ratio exceeds 0.1% but is below 5%, the transaction is subject to reporting and announcement requirements but is exempt from the circular and independent shareholders’ approval process. AviChina confirms that certain non-executive directors with ties to AVIC abstained from voting on the proposal, while other directors concluded the terms are on normal commercial grounds. The company intends to fund the acquisition fully from Keeven Aviation Instrument’s own resources.