Gelonghui, May 21丨Shanggong Shenbei (600843.SH) announced that in order to seize the development opportunities of the country's low-altitude economy, the company plans to further extend its business from providing equipment such as stitching and cutting in the processing of carbon fiber composite structural parts to the production and manufacture of carbon fiber light sports aircraft, creating the company's second growth curve. The company plans to increase the capital of German DA with self-financing and participate in the bankruptcy and restructuring of American ICON and its related parties by purchasing effective assets through its new subsidiary SGIA in the US. ICON was founded in 2006 and is mainly engaged in the design, production and sale of carbon fiber lightweight two-seater sports aircraft. The headquarters and assembly are located in Vacaville, California, USA, and the production base is located in Mexico. Currently, the total number of employees is 313.

Affected by factors such as ICON's internal management and unfavorable macroeconomic environment, ICON has continuously lost money in recent years and initiated voluntary bankruptcy proceedings in April 2024 in accordance with the provisions of Chapter 11, Volume 11 of the UnitedStatesCode (“US Code”). In accordance with the provisions of Chapter 11, Volume 11 of the U.S. Code, and in conjunction with ICON's relevant decisions focusing on asset sales, Icon's management and bankruptcy and restructuring management team drew up a restructuring transaction plan for the sale of assets, including the debtor's own management of financing, fake horse bidding procedures, and final bidding.

This transaction was carried out through an auction process. As of the disclosure date of this announcement, the US court has approved Fighter International Co., Ltd. (“Fighter International”, an overseas wholly-owned subsidiary of the company's shareholding company Shanghai Feiren Technology Co., Ltd.) to provide ICON with 9 million US dollars of self-managed financing for debtors, of which DA provided 5 million US dollars to Flyer International. The debtor's self-managed financing is part of the bankrupt entity's overall restructuring plan. Flying Man International has now paid $8 million to ICON. The funds obtained by the bankrupt entity from the sale of valid assets will be used as a priority to settle the debtor's own management financing. As of the disclosure date of this announcement, the US court has approved authorizing the bankrupt to appoint SGIA as the fake horse bidder and authorized the bankrupt to sign a “fake horse asset purchase agreement” with SGIA. According to the “Fake Horse Asset Purchase Agreement”, SGIA, as the fake horse bidder, plans to purchase valid assets under the name of the bankrupt entity selected by the company by investing 13 million US dollars and subject to obligations under the selected contract.

Icon currently sells a product, the ICONA5 aircraft. The product is positioned as an aircraft integrating entertainment and sports between light and ultra-light aircraft. The aircraft is amphibious. The fuselage is made of carbon fiber composites, and it is a single-engine piston aircraft. It uses a Rotax912S engine. The wing can be retracted and folded. The captain is 22 feet long, the wing length is 34 feet, its maximum speed can reach 176 km/h, and the maximum take-off weight is 686 kg. Its unique anti-tail design can effectively avoid the common situations of light aircraft crashing due to tail rotation. The ICONA5 aircraft sells for around $400,000 on the market.