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          AVIC Military-Civilian Integration Fund

          AVIC Military-Civilian Integration Fund

          AviChina, as the principal initiator, entered into the Joint Venture Agreement with AVIC and  AVIC Capital in relation to the formation of Beijing Rongfu AVIC Fund Management Company (the “Fund Management Company”), with a registered capital of RMB 140 million. Upon establishment, the Fund Management Company will become a subsidiary of AviChina and  its financial results will be consolidated into the company. And  it will propose to establish and  manage an AVIC military-civilian integration fund as a general partner, which shall be dedicated in investment in military-civilian integration development projects of aviation industry. Having been identified as a key measure to deepen reform by AVIC, the fund is an important way for AVIC to integrate military-civilian and  promote production, making more direct and  powerful use of high-quality social resources, boosting the development of related industries, and  accelerating the formation of all-factors , multi-fields and  high-efficiency deep development pattern of military-civilian integration.