XCMG Construction Machinery, as the major shareholder of XCMG Machinery, is fulfilling her investment commitment made a couple years ago. Following XCMG Road Construction, other three joint venture companies under the flag of XCMG – Xuzhou PAT, Xuzhou Hirschmann, and ROCKWILL, will inject their investment into the group. Investors include Xuzhou Foundation Construction Machinery, which did not involve into the commitment. All of them are listed companies.

XCMG Machinery made an announcement that she, in December 15, 2014, signed an agreement with XCMG Construction Machinery, using 972 million RMB to purchase 100% equity of XCMG Foundation, 50% equity of Xuzhou PAT, 50% equity of Xuzhou Hirschmann and 40% equity of ROCKWELL from the hand of XCMG Construction Machinery. Of which, the 100% equity of XCMG Foundation contributed 647 million RMB, and the equities of Xuzhou PAT, Xuzhou Hirschmann and ROCKWELL made prices at 31.2122 million RMB, 182 million RMB and 112 million RMB respectively.

The reported revenues of XCMG Foundation in the first half (January to June) of the years 2011, 2012, 2013 and 2014 as one of major underlying asserts were RMB 862 million, 1.192 billion, 1.695 billion and 1.435 billion respectively; the net income is RMB -10.7727 million Yuan, 22.6747 million Yuan, 93.7256 million Yuan and 65.0037 million respectively.

XCMG Machinery indicates this purchase will help to further enrich her product mix, improve her market responsiveness, risk resistance and her overall profitability. On the other hand, the transaction will contribute to further improvement of her lines of components and parts to guarantee her manufacture needs and market demands, enhance her overall collaboration and innovation capacities, and increase values of her products, so as to provide better returns to her shareholders.

XCMG Construction Machinery made a commitment in August 2009 that she would inject her five joint ventures into the listed company. They are XCMG Road Construction Machinery, XCMG Excavating Machinery, XCMG Construction Machinery Rental and Xuzhong PAT.

100% equity of XCMG Road Construction Machinery, in March 2011, were transferred to XCMG Machinery already. For XCMG Excavating Machinery and XCMG Construction Machinery Rental, due to their high debt rates and weak profitability, XCMG Construction Machinery has filed an application for postponing and exempting her assets injections into the two businesses respectively.

In addition, an arrangement for asserts injection into XCMG Construction Machinery from Xuzhou Rothe Erde and Xuzhou LUX is moving ahead. At this point, XCMG Construction Machinery as the major shareholder comes close to complete fulfillment of her commitment which she made.