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XCMG AUTO's Landmark Investment in the Commercial Vehicle Sector

In a groundbreaking achievement for the commercial vehicle market, XCMG AUTO has successfully secured investments totaling 6.444 billion RMB from 30 strategic investors. This significant milestone represents the largest funding deal in China’s commercial vehicle sector in the past five years, reflecting a robust confidence in XCMG’s future and operational strategies.

The signing ceremony of this investment was a key event, showcasing XCMG's capability to attract various investors, including industry players and national funds. These stakeholders offer not only capital but also strategic synergies that enhance the interaction and collaboration between upstream and downstream supply chains. By integrating these resources, XCMG is poised to improve its operational efficiency and further its commitment to developing high-quality vehicle solutions.

As the commercial vehicle market becomes increasingly competitive, traditional development models are facing limitations. XCMG's recent move towards mixed ownership reform is significant, as it signals not just an infusion of capital but also a fresh impetus for resource integration. This reform aims to spur collaboration across the industrial chain, bolster technological cooperation, and expand XCMG’s market reach. By fostering such an ecosystem, XCMG intends to accelerate its development of new energy technologies and fortify its sales and after-sales services network.

This strategic investment comes at a time when China is navigating a pivotal transition towards greener and more intelligent commercial vehicle manufacturing. In response to this demand, XCMG has actively positioned itself alongside its dual-carbon strategy, which enhances sustainability in its operations. The company’s new product line includes fully electric, hybrid, and hydrogen fuel cell-powered vehicles. These innovative solutions cater to diverse applications, ranging from municipal sanitation and logistics to construction and mining operations.

XCMG continues to hold a leading position in the industry, not only through its innovative products but also by expanding its global footprint. The company has already initiated production facilities in the Middle East and Africa, transitioning from mere commercial export to in-depth localization and integration within these markets. This year, XCMG has seen remarkable success, with 14,400 units of heavy new energy trucks sold in 2024, securing the highest total sales and market share in the industry for two consecutive years.

This achievement underscores XCMG's commitment to advancing its sector and hints at future innovations and growth. With the ongoing shift towards cleaner energy in commercial transportation, XCMG is well-positioned to lead this change, making strides not only within China but also on a global scale.

In summary, the successful raising of 6.444 billion RMB marks a crucial stepping stone for XCMG AUTO. The investment reflects a growing trust within the capital markets regarding XCMG’s pathway of reform and development. Enabled by this capital boost, XCMG seeks to propel its initiatives in eco-friendly technologies and establish itself as a pioneer in the evolving landscape of the global automotive sector.