XCMG Construction Machinery intends to acquire 51% equity of Xuzhou XCMG Heavy Vehicle Co., Ltd. for 0.821 billion yuan.

XCMG Construction Machinery announced that the company intends to acquire 51% equity of Xuzhou XCMG Heavy Vehicle Co., Ltd. held by Nanjing XCMG Automotive Manufacturing Co., Ltd. for 0.821 billion yuan. After the Trade is completed, the heavy vehicle sector will become a controlled subsidiary of XCMG Construction Machinery. This Trade will help the company establish competitive advantages in the complete and series products of mining machinery, support the scale growth of the mining machinery Sector, and assist the company in achieving the Global Strategy goal of being in the top three in the open-pit mining machinery equipment Industry. The counterparty, XCMG Nanjing Automobile, commits that if the net income of the target company does not meet the promised net income at the end of any accounting year during the performance commitment period, XCMG Nanjing Automobile shall compensate the cash difference according to the agreement between the promised net income and the actual net income accumulated at the end of the corresponding fiscal year during the performance commitment period, and the company's controlling Shareholder, Xuzhou Engineering Machinery Group Co., Ltd., shall bear joint and several guarantee liability for XCMG Nanjing Automobile's obligation to compensate for the performance commitment under this agreement.