On April 18, XCMG Machinery revealed its intention to purchase a 51% equity interest in Xuzhou XCMG Heavy Vehicle Co., Ltd., currently held by Nanjing XCMG Automobile Manufacturing Co., Ltd., for a total sum of 821 million yuan. Upon the successful conclusion of this transaction, Xuzhou XCMG Heavy Vehicle Co., Ltd. will be transformed into a subsidiary under the control of XCMG Machinery. Furthermore, Nanjing XCMG Automobile has made a commitment that should the target company fail to meet the agreed-upon profit targets by the end of any fiscal year during the performance commitment period, it will provide cash compensation for any shortfall as per the agreement.

Notably, Xuzhou Construction Machinery Group Co., Ltd., the majority shareholder of XCMG Machinery, will assume joint and several liability for the performance commitment compensation obligations stipulated in this agreement with Nanjing XCMG Automobile.