According to Cailian Press on September 13th, after more than a year of planning, Zoomlion's efforts to reorganize and list its subsidiary, Zoomlion High-altitude Machinery, and Roadrover Technology (002813.SZ), have temporarily fallen through. Zoomlion stated that the termination of the reorganization project will not affect the production and operation of Roadrover Technology and Zoomlion High-altitude Machinery.

Tonight, Zoomlion (000157.SZ) announced that the company plans to terminate the reorganization and listing of its wholly-owned subsidiary, Zoomlion High-altitude Machinery, and Roadrover Technology. The announcement shows that since the planning of the spin-off and listing, Zoomlion has actively promoted related work, but due to changes in the market environment and careful consideration, it has decided to terminate the spin-off. The termination of the spin-off will not have a significant adverse impact on the company's existing business and financial condition, nor will it affect the company's future strategic planning.

On the same evening, Roadrover Technology announced that due to significant changes in the market environment, the company has decided to terminate the issuance of shares to purchase assets, raise supporting funds, and conduct related party transactions, and withdraw the application documents. The reason for this is the significant changes in the market environment.

Zoomlion High-altitude Machinery's main products include scissor-type, straight-arm-type, and articulated-arm-type high-altitude work machinery. According to the plan previously released by Zoomlion for the spin-off and reorganization of its subsidiary, Zoomlion High-altitude Machinery, Roadrover Technology would issue shares to the 29 shareholders of Zoomlion High-altitude Machinery to purchase 100% of its equity, and issue shares to no more than 35 specific objects to raise supporting funds. The transaction price for the 100% equity of Zoomlion High-altitude Machinery is 9.424 billion yuan, thereby realizing the reorganization and listing of Zoomlion High-altitude Machinery. After the completion of the transaction, Zoomlion High-altitude Machinery will become a wholly-owned subsidiary of Roadrover Technology, and Zoomlion will still be the controlling shareholder of Roadrover Technology.

At the same time, Roadrover Technology plans to raise no more than 3.35 billion yuan, of which 1 billion yuan will be used for the construction of a production base in Mexico, and 2.35 billion yuan will be used to supplement the working capital of Roadrover Technology and Zoomlion High-altitude Machinery or repay debts. The parties involved have committed that if the transaction is completed within 2024, the net income of Zoomlion High-altitude Machinery from 2024 to 2026 will not be less than 0.74 billion yuan, 0.9 billion yuan, and 10.28 billion yuan, respectively.

Expanding market share overseas has been a major strategy for domestic construction machinery manufacturers, including high-altitude machinery manufacturers, in recent years. The investment in the construction of a production base project in Mexico, which is planned to be raised through the issuance of supporting funds, is one of the important support points for Zoomlion High-altitude Machinery's future business expansion in the Americas and the implementation of its internationalization strategy.

As the seventh largest high-altitude work platform manufacturer in the world in 2022, the proportion of Zoomlion High-altitude Machinery's overseas sales revenue was 6.87%, 5.17%, and 17.43% from 2020 to 2022, respectively. Currently, in addition to Zoomlion High-altitude Machinery, the major domestic high-altitude work machinery manufacturers include JLG, Genie, XCMG Construction Machinery (000425.SZ), Zhejiang Dingli Machinery (603338.SH), Lingong Heavy Machinery, and Xingbang Intelligent, among others.

Industry insiders have indicated that the termination of the above-mentioned restructuring projects will not affect the production and operation activities of RoadRover Technology and Zoomlion Hi-Tech. It will not change the nature of RoadRover Technology and Zoomlion Hi-Tech as subsidiaries of Zoomlion. Under the layout of Zoomlion, the business of RoadRover Technology and Zoomlion Hi-Tech has been further optimized.

Recently, during a institutional survey, Zoomlion stated that the sales revenue of aerial work machinery in the first half of the year reached 3.955 billion yuan, a year-on-year growth of 17.8%. In just a few years, it has gone from non-existent to being among the top two national brands. The North American factory has started production, and substantial cooperation has been established with the top ten European Union clients. The overseas sales are in high demand.