AVIC Heavy Machinery Co., Ltd. (SHSE:600765) announced that it has entered into subscription agreement for a private placement of not more than 187,936,168 A shares for gross proceeds of not more than CNY 1,910,000,000 on January 15, 2021. The transaction will involve participation from not more than 25 specific investors, including AviChina Industry & Technology Company Limited (SEHK:2357) for CNY 200,000,000 and Beijing AVIC Phase I Aviation Industry Industry Investment Fund (Limited Partnership), a fund managed by AVIC Rongfu Fund Management Co., Ltd. for CNY 100,000,000. The transaction will not exceed 20% of the company's total share capital before the non-public issuance. The company will issue shares at a pricing base date is the first day of the issuance period, and the issue price is not less than 80% of the average price of the company’s stock trading on the 20 trading days before the pricing base date. The shares to be issued to AviChina Industry & Technology Company Limited (SEHK:2357), and Beijing AVIC Phase I Aviation Industry Industry Investment Fund (Limited Partnership) will have a hold period of 18 months, and for all other subscribers the hold period will be six months, post the closing. The transaction is still subject to the approval of the industry authorities and the state-owned assets supervision and management agency, by the competent authority of national defense technology and industry, and it can be implemented after the company's shareholders meeting has reviewed and approved it and the China Securities Regulatory Commission. The transaction has been approved by the board of directors of the company in its 16th meeting of the 16th board of directors of the company.