On 13 January 2016, the Offering Review Committee of China Securities Regulatory Commission (“CSRC”) approved the application filed by Shanghai Juneyao Airlines Co., Ltd. (“Juneyao Airlines”, code: 603885) for an A-share non-public offering (the “Offering”).

Juneyao Airlines, with a total equity of RMB 1.136 billion, is a subsidiary company of Shanghai Juneyao (Group) Co., Ltd., one of China's Top 100 Private Companies. Based in Shanghai and operating hubs at Hongqiao and Pudong International Airports, Juneyao Airlines mainly operates domestic air transport of passenger, cargo and mail, business and tourist charter, as well as flights to Hong Kong, Macao and neighboring countries.

Juneyao Airlines started its maiden flight on September 25, 2006. It has kept a good record of safety operation since its beginning. By now, it has owned 50 brand-new Airbus A320 aircrafts and the average age of the aircrafts is only 3 years, making it one of the youngest fleets in the world. 

Taking Shanghai as the hub, its airline network radiates domestic cities and neighboring regions and countries. The domestic flight routes of Juneyao Airlines cover over 80 cities, such as round-trip flights from Shanghai to Beijing, Shenzhen, Wenzhou, etc. Juneyao Airlines has also opened regional flights to Hong Kong, Macao, Taiwan and international flights to Northeast and Southeast Asia.

As one of the fastest growing airlines in China, Juneyao Airlines in the fierce competition of aviation transport market, adhering to the service concepts of "Juneyao Airlines, the Right Trip home", abiding by "Safety, Punctuality, Attentive Service" operation concept, strives to become an airlines with characteristics and quality and satisfied by customers in 5 to 10 years.

The aggregated proceeds of the offering are estimated to be no more than RMB 3.565 billion with a total share up to RMB 77.1144 million. The money so raised will be used for the purchase of four A320 aircrafts, 3 standby engines and 2 flight simulators. The further expansion of the fleet scale will boost the company’s transport and service capacity, as well as its sustainable management ability and industry competitiveness; meanwhile, it will guarantee the continuous training demands of pilots, improve the training quality and safe operation level, so as to strengthen the ability of safe operation and risk prevention and control. In addition, Juneyao Airlines plans to establish a leisure tourism E-commerce platform called “Taolvxing” (comprehensive and professional E-commerce platform with “airtickets+X” advantages). This platform is said to offer passengers comprehensive service from check-in to the cabin to the destination, making full use of the advantages of the company.

Grandall Shanghai Office has been retained as the issuer’s counsel, with Mr. QIAN Dazhi, Mr. HU Yu, Mr. SHAO Zhen, Mr. JIANG Ziyang and Mr. LI Danning as key lawyers offering comprehensive and professional service.