Core Viewpoint - China Aviation Industry Fund (中航产融) is selling assets to recover funds as it is in the process of delisting from the stock market due to significant operational uncertainties and expected financial losses [1][2][7]. Group 1: Asset Sale Details - The company plans to transfer 160 million shares of AVIC Xi'an Aircraft Industry Group (中航西飞) and 22.68 million shares of AVIC Aircraft (中航机载) to its controlling shareholder, AVIC (中国航空工业集团), for a total price of approximately 4.067 billion yuan [1][4]. - The share transfer represents 5.76% of AVIC Xi'an's total shares and 0.47% of AVIC Aircraft's total shares [4]. - The transfer price is based on the average weighted price of the shares over the previous 30 trading days, with AVIC Xi'an priced at 23.81 yuan per share and AVIC Aircraft at 11.19 yuan per share [4]. Group 2: Financial Performance and Future Plans - As of September 2024, the company's total assets amounted to 442.393 billion yuan, with a debt-to-asset ratio of 85.13% [3][6]. - The company anticipates a net loss of approximately 48 million yuan for 2024, marking its first loss since 2006, with a projected net loss of 189 million yuan after excluding non-recurring items [2][5]. - The company is actively pursuing a voluntary delisting from the A-share market, with the Shanghai Stock Exchange having accepted its application for termination of listing [2][7][8]. Group 3: Legal Issues - The company is facing a lawsuit from China Life Insurance (中国人寿) regarding a share buyback dispute, with the total claim amounting to approximately 2.71 billion yuan [9][10].

Core Viewpoint - The article discusses the downfall of Dongfang Group, highlighting financial fraud, lawsuits, and the impending delisting of its stock due to continuous losses and regulatory scrutiny [4][5][10]. Group 1: Financial Fraud and Legal Issues - Dongfang Group's financial statements were found to have inflated revenue by 161.3 billion and costs by 160.73 billion from 2020 to 2023, leading to severe penalties and legal actions [15][30]. - Minsheng Bank has initiated a lawsuit against Dongfang Group and its former vice chairman Zhang Hongwei, with the claim amounting to 10.3 billion [4][6]. - As of April 9, 2023, Dongfang Group reported a total of 19.52 billion in lawsuits involving multiple banks, indicating a widespread financial crisis [10]. Group 2: Stock Market Impact and Delisting - Dongfang Group's stock was suspended from trading on April 15, 2023, after failing to maintain a closing price above 1 yuan for 20 consecutive trading days, triggering delisting conditions [10][16]. - The stock price plummeted from 0.92 yuan on March 14, 2023, to a low of 0.59 yuan, reflecting a significant loss of investor confidence [16][30]. Group 3: Historical Context and Expansion - Zhang Hongwei, the controlling figure of Dongfang Group, became a major shareholder of Minsheng Bank in 1999, leveraging this position for financial expansion [23][24]. - At its peak, Dongfang Group was valued at 410 billion, with Zhang Hongwei being recognized as one of the wealthiest individuals in Northeast China [27][28]. Group 4: Broader Industry Implications - The financial troubles of Dongfang Group have adversely affected Minsheng Bank, which has seen a decline in revenue and net profit over the past three years, dropping from 549 million in 2019 to around 350 million [30]. - The article suggests that the financial mismanagement and fraud within Dongfang Group could serve as a cautionary tale for the broader market, similar to the Enron scandal [16][30].