China Resource (Jilin) Bio-Chemical Co Ltd said in a filing with the Shanghai Stock Exchange on Monday that it has won the approval from the China Securities Regulatory Commission (CSRC) to acquire the assets of Xi'an Aero-Engine Group Ltd (XAE) by issuing non-tradable shares to the latter.

After the restructuring, XAE will be able to access the A-share market and raise funds for its future expansion. XAE has set the target of building itself into a first-class engine manufacturer of airplanes in 20 years.

Earlier reports said China Resources Bio-Chemical, a wholly owned subsidiary of COFOC, has invited XAE to participate in its non-tradable share reform and asset restructuring.

Xi'an Aero-Engine Group is the largest company engaged in aero-engine outsourcing in China. In 2007, Xi'an Aero-Engine's main business revenue hit RMB 3.76 billion, a year-on-year increase of 24.9%, with a 26.5% increase in profits to RMB 73.51 million.

XAE's foreign exchange earnings last year reached US$161 million, accounting for a third of China's aero-engine subcontracting business. Its subcontract volume is expected to reach US$ 200 million in 2008, and is expected to hit US$ 300 million by 2010.