XCMG acquires Xuzhou Heavy Vehicle, advances mining equipment strategy

XCMG Construction Machinery (SZSE:000425) announced its plan to acquire 51% equity in Xuzhou Heavy Vehicle from Nanjing XCMG Automobile Manufacturing for CNY 82.14 million. This acquisition, approved by XCMG's board, will make Xuzhou Heavy Vehicle a controlling subsidiary. It is a move aimed to build a complete mining equipment product line and is aligned with a previous commitment by XCMG to avoid competing with Xuzhou Heavy Vehicle. Nanjing XCMG Automobile Manufacturing guaranteed specific profit targets for Xuzhou Heavy Vehicle over the three years following the completion of the deal. If these targets are unmet, they will compensate XCMG Construction Machinery, with XCMG Group providing a guarantee. This is in line with the group’s long-term development goals. XCMG has already repurchased 121,094,113 shares representing 1.02% of the company's total share capital for CNY 1,036,137,848.20.