On February 9th, 2018, China CO-OP Group completed the acquisition of 100% equity of China Airlines International Grain and Oil Trading Co., Ltd., after Aviation Industry Corporation of China, become an invisible leader in the domestic grain and oil industry, and assume the task of purchasing and stockpiling agricultural products.

We are a special legal advisor of the China CO-OP Group on this acquisition. Senior partner Yan Penghe lawyers team provide professional legal services to them, help both parties to solve the problem of state-owned asset trading supervision and coordinate the smooth transition of policy-related purchasing and storage qualifications.

The controlling party of AVIC International Grain & Oil Trading Co., Ltd. is China Aviation Technology International Holdings Co., Ltd., and the parent company is Fortune 500 China Aviation Industry Corporation. The predecessor of the company was Shanghai Pudong Aviation Supply and Marketing Co., Ltd., established in 1993. In 2009, it has already engaged in the business of soybean meal sales. In 2010, its bulk agricultural trade was listed as one of the key development projects in the 12th Five-Year Plan of the Aviation Industry Department of China. Completed the reorganization in 2011 and established "AVIC International Grain & Oil Trading Shanghai Co., Ltd. In 2014, it was renamed "AviChina International Grain Oil Trading Co., Ltd." and became a leading professional agricultural product operator in China.

AVIC International Grain & Oil Trading Co., Ltd. is involved in the collection, storage, processing, trade, service business, and international trade and futures businesses of various types of agricultural products such as corn, wheat staples, soybean meal, vegetable crops, etc. It has established several food storage bases in the three northeastern provinces, Henan, and Hebei, which are the main grain producing areas in China. And it has established an industrial park based on processing and trading of feed ingredients in Hubei, and established a number of wholly-owned, holding companies and branches in the main agricultural production areas and trading centers in Shandong, Jiangxi, and Xinjiang.

China CO-OP Group is China's large-scale agriculture-related circulation industry group approved by the State Council, and it is the "national team" of system enterprises established by the All-China Federation of Supply and Marketing Cooperatives. The acquisition will further increase the status of China CO-OP Group in the field of agricultural trade and realize the layout of the Group's grain and trade fields.