China Eastern Airlines Corporation Limited (00670) reported that its wholly-owned subsidiary Shanghai Airlines will transfer property and ancillary equipment in Shanghai’s Catic Building to Eastern Air Property, a wholly-owned subsidiary of CEA Asset. The transaction price is approximately RMB134.29 million, determined through an independent valuation based on the market approach.
Shanghai Airlines’ assets in the Catic Building, with a total gross floor area of about 5,155.70 square meters, are free of any mortgages or pledges that would prevent ownership transfer. According to the announcement, the appraised value exceeded the book value due to the property’s early acquisition date and subsequent market price increases, resulting in an estimated disposal gain of around RMB42.5 million (after income tax). The proceeds will be used for daily operations.
This transaction constitutes a connected transaction under Chapter 14A of the Hong Kong Listing Rules, as Eastern Air Property is deemed a connected person through its controlling shareholder relationship with China Eastern Airlines Corporation Limited. Relevant directors who also hold directorships at CEA Holding abstained from voting on the resolution. The deal is subject to standard reporting, announcement, and annual review requirements but is exempt from independent shareholders’ approval. The disposal is expected to help optimize Shanghai Airlines’ asset structure and focus resources on its core aviation business.
