SHENZHEN INT'L (00152) announced that its associate company Shenzhen Airlines Co., Ltd. (Shenzhen Airlines) plans to conduct a phased capital increase totaling RMB 16 billion, and the group will not participate in this capital increase.

The capital increase is planned to be implemented in two phases. In the first phase, Shenzhen Airlines intends to introduce a new investor through public bidding, with its controlling shareholder China National Aviation Corporation Limited (Air China) and the new investor jointly contributing approximately RMB 4.082 billion. Upon completion of the first phase capital increase, the group's shareholding in Shenzhen Airlines is expected to be diluted from 49% to approximately 28.09%, while Air China's shareholding in Shenzhen Airlines will remain at 51%, and the new investor's shareholding in Shenzhen Airlines will not exceed 20.91%.

In subsequent phases, Air China and the new investor will conduct further capital increases based on Shenzhen Airlines' funding requirements and shareholder meeting resolutions. The group's shareholding in Shenzhen Airlines is expected to be further diluted.

The group believes that not participating in Shenzhen Airlines' capital increase will be beneficial for the group to further promote the continuous concentration of resources toward its core business, strengthen focus and management of its main operations, and effectively optimize overall resource allocation efficiency. Additionally, not participating in this capital increase will not cause any material impact on the group's normal operations and financial condition.

Shenzhen Airlines will continue to be classified as an associate company of the group.