China Achieves Largest Financing Deal in Commercial Vehicles in Five Years With 6.444 Billion RMB Investment

Major Financial Breakthrough in China's Commercial Vehicle Sector

In a landmark achievement, XCMG AUTO, a subsidiary of XCMG Machinery (SHE: 000425), has successfully secured strategic investments totaling 6.444 billion RMB from 30 investors. This financing deal stands as the largest for the commercial vehicle sector in China over the past five years, indicating a strong vote of confidence in XCMG's ongoing reform and development initiatives.

The recent investment ceremony was not only a financial milestone but a strategic alignment with various stakeholders across the industry. The investors include representatives adept at fostering strategic synergies and enhancing interaction between upstream and downstream supply chains. Their involvement is expected to infuse valuable capital perspectives that will drive continuous improvements in XCMG's lean management practices and assist the company in achieving its goals for high-quality development.

As competition intensifies within the commercial vehicle marketplace, the need for modern development models becomes increasingly apparent. This mixed-ownership reform is pivotal—not merely as an influx of capital but also as a means of resource integration, sparking new growth impulses. The reform is anticipated to enhance collaborative efforts across the entire industry chain, facilitate technological cooperation, and expand market reach. Such advancements are crucial for XCMG as it accelerates the development of new energy technologies, distribution networks, and customer service innovations.

Furthermore, XCMG is dedicated to promoting environmentally friendly and intelligent transformations within the commercial vehicle sector. In recent years, the company has been proactively aligning with its dual carbon intensity strategy. The latest additions to its energy product line include pure electric vehicles, hybrid vehicles, and hydrogen fuel cell vehicles, applicable in various sectors such as road logistics, construction, municipal waste disposal, and mining. This extensive product range places XCMG at the forefront of the industry, contributing to its robust global strategy and increasing international influence, which has seen the company transition from simple export trading to comprehensive localization and integration within the Middle Eastern and African markets.

Notably, during 2024, XCMG's sales of heavy trucks powered by alternative energy sources reached 14,400 units, marking the second consecutive year of achieving the highest overall sales and market share in the industry. This remarkable achievement underscores XCMG's significant progress in embracing new energy technologies and lays the groundwork for further breakthroughs and innovations in the years to come.

With this financial backing and an unwavering commitment to a greener future, XCMG is poised to champion advancements that enhance operational efficiencies, drive sustainable practices, and meet the evolving demands of the global market.