China Aero-Engine Corporation Power Co., Ltd. Announcement on the Progress of External Investment by its Subsidiary China Aero-Engine Southern Industrial Co., Ltd.

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Stock Code: 600893 Stock Short Name: AECC Avcon Announcement No.: 2026-012

Announcement by AECC Avcon Power Co., Ltd. regarding the progress of related-party outbound investment by its subsidiary

The board of directors of the Company and all of its directors warrant that there are no false statements, misleading representations or material omissions in the contents of this announcement, and assume legal responsibility for the authenticity, accuracy and completeness of the contents.

Key Matters to Note:

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I. Basic Information on the Outbound Investment

On December 30, 2025, at the 11th meeting of the eleventh session of the board of directors of AECC Avcon Power Co., Ltd. (the “Company”, hereinafter), the Company considered and approved the resolution on “the proposal to jointly invest and establish a subsidiary between AECC Avcon Power Co., Ltd.’s wholly owned subsidiary AECC Avcon Power Co., Ltd. and related parties”, approving that the wholly owned subsidiary AECC Avcon Power Co., Ltd. (hereinafter referred to as “Southern Company”) would contribute RMB 930,783.6 thousand yuan to jointly invest in establishing AECC Tonghang Aviation Power Technology (Shanghai) Co., Ltd. (hereinafter referred to as “Tonghang Aviation Power”) together with three related parties, namely China AECC Hunan Power Machinery Research Institute, China AECC Asset Management Co., Ltd., and Guizhou Guofa Aero Engine Industry Development Equity Investment Partnership (Limited Partnership), as well as six non-related parties including Shanghai Chuangchuang No. 1 Private Fund Partnership (Limited Partnership). The registered capital of Tonghang Aviation Power is RMB 3.5 billion. After completion of this outbound investment, Southern Company will hold 26.5938% of the equity interests of Tonghang Aviation Power. For details, see the Company’s announcement disclosed on January 1, 2026 on the official website of the Shanghai Stock Exchange (www.sse.com.cn), titled “Announcement on the establishment of a subsidiary by China AECC Avcon Power Co., Ltd. together with related parties” (Announcement No.: 2026-004).

II. Progress of the Outbound Investment

(I) Registration of Tonghang Aviation Power

As of the date of this announcement, Tonghang Aviation Power has completed industrial and commercial registration and obtained a business license issued by the Market Supervision Administration of the Lingang New Area of the China (Shanghai) Pilot Free Trade Zone. The relevant registration information is as follows:

Company name: AECC Tonghang Aviation Power Technology (Shanghai) Co., Ltd.

Unified Social Credit Code: 91310000MAK80EK22J

Date of establishment: February 26, 2026

Legal representative: Gao Jie

Registered capital: 350,000 million yuan

Company type: Limited liability company (state-owned holding)

Registered address: Floor 5, Building 1, No. 1800 Xiayangong Road, Lingang New Area, China (Shanghai) Pilot Free Trade Zone

Business scope: General projects: technology services, technology development, technology consulting, technology exchange, technology transfer, technology promotion; intelligent unmanned aerial vehicle manufacturing; intelligent unmanned aerial vehicle sales; bearing, gear and transmission component manufacturing; bearing, gear and transmission component sales; leasing services (excluding licensed leasing services). Licensed projects: design and production of civil aircraft engine parts; production of civil aircraft (engines, propellers).

(II) Execution of the agreements

As of the date of this announcement, all shareholders of Tonghang Aviation Power have completed the signing of the “Capital Contribution Agreement of AECC Tonghang Aviation Power Technology (Shanghai) Co., Ltd.” (hereinafter referred to as the “Capital Contribution Agreement”) and the Articles of Association of AECC Tonghang Aviation Power Technology (Shanghai) Co., Ltd.; Southern Company and related party China AECC Hunan Power Machinery Research Institute and China AECC Asset Management Co., Ltd. (hereinafter referred to as the “parties to the agreement on execution”) have completed the signing of the “Agreement on Acting in Concert for AECC Tonghang Aviation Power Technology (Shanghai) Co., Ltd.” (hereinafter referred to as the “Acting in Concert Agreement”).

1. Main contents of the Capital Contribution Agreement are as follows:

The board of directors of Tonghang Aviation Power consists of 9 directors. Among them, Southern Company recommends 3 candidates, China AECC Hunan Power Machinery Research Institute recommends 2 candidates, the industrial machine tool industry investment fund (limited partnership), the second phase of the national military-civil fusion industry investment fund, and Shanghai Electric (Group) Co., Ltd. each recommends 1 candidate, and there is 1 employee director. There is 1 chairman of the board, who is the legal representative and is recommended by China AECC Hunan Power Machinery Research Institute; there is 1 vice chairman, who is recommended by Southern Company. The chairman and vice chairman are elected by the board of directors. The operation and management team of Tonghang Aviation Power consists of 3 members, including 1 general manager and 2 deputy general managers, who are appointed or removed by the board of directors.

2. Main contents of the Acting in Concert Agreement are as follows:

When Tonghang Aviation Power exercises shareholder meeting and board of directors proposal rights and voting rights, the parties to the agreement on execution shall take concerted action. If the parties to the agreement on execution are unable to reach a unified opinion when exercising rights such as proposal and voting at the shareholder meeting and board of directors of Tonghang Aviation Power, the opinion of Southern Company shall prevail.

(III) Control right

Pursuant to the relevant arrangements of the Capital Contribution Agreement and the Acting in Concert Agreement, Southern Company may control Tonghang Aviation Power through a majority of the board seats, forming actual control over matters such as board proposals and voting. Meanwhile, Southern Company actually has voting rights over 47.1429% of the voting rights of the shareholder meeting of Tonghang Aviation Power, which is far higher than the shareholding ratio of other single shareholders. In addition, pursuant to the relevant provisions on control rights under the Measures for the Administration of Takeover of Listed Companies, the voting rights of shares that Southern Company can actually dispose of exceed 30%, enabling it to have a significant impact on the resolutions of the shareholder meeting of Tonghang Aviation Power. Southern Company has actual control over Tonghang Aviation Power, which will be included in the scope of the Company’s consolidated financial statements.

(IV) Reinstatement of temporarily withheld disclosure matters

In the “Announcement on the joint investment and establishment of a subsidiary by China AECC Avcon Power Co., Ltd. together with related parties as well as related-party transaction” (Announcement No.: 2026-004) disclosed by the Company on January 1, 2026, due to the fact that at that time shareholders 8 and 9 of Tonghang Aviation Power had not completed the relevant decision procedures, in accordance with the information disclosure exemption provisions, the Company previously temporarily withheld disclosure of the relevant information of shareholders 8 and 9. As of the date of this announcement, the corresponding decision procedures have been completed, and disclosure conditions are satisfied. The relevant information is now supplemented as follows:

1. Shareholder 8 (non-related party)

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Aviation Industry Rainbow Unmanned Aerial Vehicle Co., Ltd. is a customer of Southern Company, and the two parties have cooperated in recent years in providing supporting products for the unmanned aircraft industry.

2. Shareholder 9 (non-related party)

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AVIC (Chengdu) Unmanned Aerial Vehicle Systems Co., Ltd. is a customer of Southern Company, and the two parties have cooperated for a long time in providing supporting products for the unmanned aircraft industry.

III. Impact of this outbound investment on the Company

Pursuant to accounting standards, the Company will include Tonghang Aviation Power in the scope of its consolidated financial statements. In the future, the financial condition and operating results of Tonghang Aviation Power will affect the Company’s overall performance. The Company and Southern Company will duly exercise their shareholder rights in accordance with the law, implement effective management of Tonghang Aviation Power through standardized corporate governance structures, and safeguard the interests of the Company and all its shareholders.

This announcement is hereby issued.

AECC Avcon Power Co., Ltd.

Board of Directors

March 31, 2026

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