On 6 January 2016, China Aircraft Leasing Group Holdings Limited, through three of its wholly owned special purpose vehicles, entered into the Sichuan Airlines Aircraft Lease Agreements with Sichuan Airlines respectively, pursuant to which the Company, through these wholly owned special purpose vehicles, agreed to lease three Airbus A320 aircraft to Sichuan Airlines. It is expected that the Sichuan Airlines Aircraft Lease Agreements will be classified as finance leases according to the Company's accounting policies. The final accounting treatment will be confirmed on or before the delivery of the respective aircraft and commencement of the respective Sichuan Airlines Aircraft Lease Agreement. Aircraft to be leased: three Airbus A320 aircraft. Term: 144 months from the date when each of the three Airbus aircraft is delivered to and accepted
by Sichuan Airlines respectively.