Recently, Wanfeng Aviation Industry Co., Ltd. (hereinafter referred to as "Wanfeng Aviation") completed the second phase of its strategic cooperation project in Qingdao. This was an equity delivery cooperation project with Wanfeng Aircraft Industry Co., Ltd. (hereinafter referred to as "Wanfeng Aircraft Industry").
The strategic cooperation project included two stages. The first stage involved the cooperation of Laixi General Aviation Industrial Park, and the second stage involved the equity cooperation of Wanfeng Aircraft Industry. In the first stage, Wanfeng Aviation and the Laixi municipal people's government in Qingdao signed the relevant industrial cooperation agreement, which will promote the aircraft and aircraft parts manufacturing industries. Along with the construction of the Laixi Aviation Industry Town, it demonstrates a new model for a national comprehensive demonstration zone for the general aviation industry. In the second stage, Wanfeng Auto Holding Group (hereinafter referred to as "Wanfeng Group") and Wanfeng Aviation signed equity transfer agreements with related enterprises of Qingdao City Construction Investment (Group) Co., Ltd. (hereinafter referred to as " Qingdao City Investment") Wanfeng Aviation transferred 35% of its equity of Wanfeng Aircraft Industry to Qingdao City Investment for a consideration of RMB 1843.1 million. 70% of the transaction funds of the equity cooperation project have been paid, and Wanfeng Aircraft Industry has completed the industrial and commercial registration procedures for the equity transfer.
Wanfeng Group is an international enterprise group with advanced manufacturing as its core industry in the field of transportation. It ranks among the top 500 private enterprises in China. Its business involves automobile parts, Intelligent Equipment, general aviation and other industries. Wanfeng Aviation is a business leader with development advantages throughout the whole aviation industry chain. With aircraft R&D and manufacturing as its core, forming a development pattern of international R & D, its manufacturing is based in China and it has global sales. As an international company focused on aircraft R & D and manufacturing, Wanfeng Aircraft Industry owns Diamond Aircraft Industries, the world's leading general aircraft manufacturer, and has top technology R&D capabilities in the field of general aircraft.
Qingdao City Investment is one of the largest state-owned investment platforms in Shandong Province. At present, its total assets exceed RMB 240 billion, ranking it firmly in the top ten urban construction investment enterprises in China. It is a pilot enterprise of state-owned capital investment and operation company designated by Qingdao municipal government.
The general aviation industry is an important emerging and strategic industry in the national economic and social development of China. The first-phase cooperation project of Wanfeng Laixi General Aviation Industrial Park marked the official launch of the industrial cooperation between Wanfeng and Laixi City, which will inject new impetus into the construction of the Shanghai Cooperation Demonstration Zone and the new international cooperation platform of the "One Belt, One Road" initiative in Qingdao. The project will promote the sustainable development of the aviation industry in our country. The second stage of the Wanfeng Aircraft Industry equity cooperation demonstrates the bond between Wanfeng and Qingdao after the successful construction of Wanfeng Laixi General Aviation Industrial Park. Wanfeng combined with Qingdao City Investment, leveraging the general aviation industry market and built a world-class "unicorn" in the general aviation industry. It promises to be a model for strategic investment and cooperation in the general aviation industry and a model of high-quality development between industry and capital.
This project involved several parties, and the rights and obligations of the parties were complicated. It was necessary to distinguish the rights and obligations of all the different parties. As the general aviation industry is a new industry, the customer business model was unique and innovative, and it was necessary to match the corresponding implementation paths. During this project, JunHe clarified the rights and obligations of the different parties, designed a feasible path to achieve the transaction purpose of all the parties as well as providing the relevant legal documents to facilitate the smooth operation of the project. During the two phases of the project, JunHe provided whole-process legal services as counsel to Wanfeng Aviation, Wanfeng Aviation and Wanfeng Group respectively, including designing the deal structure. JunHe's team reviewed and modified the transaction text and undertook multiple rounds of negotiations and provided closing assistance. The team also provided consultancy opinions and normative suggestions with regard to the cooperation among parties and the relevant legal issues.
The lead partner of this project was Mr. ZHANG, Xingzhong.