Xuzhou Construction Machinery Group Co., Ltd. (referred to as the company), in accordance with the "Xuzhou Construction Machinery Group Co., Ltd Pilot Implementation Plan for Mixed Ownership Reform" approved by the Xuzhou Municipal State-owned Assets Supervision and Administration Commission on July 25, 2019. The capital increase project related to the company's mixed ownership reform was publicly listed on Jiangsu Assets and Equity Exchange on June 24, 2020.
The announcement stated that the company will introduce strategic investors through stock transfers, capital increase and share expansion. After the completion of this capital increase, the company’s shareholders Xuzhou Construction Machinery Group Co., Ltd. (abbreviated as XCMG Group) and a provincial state-owned wholly-owned company held a total of at least 51% of the company’s equity after the capital increase. Strategic investors and employee shareholding platforms hold a total of 49% of the company’s equity after the capital increase (of which employee shareholding platforms hold approximately 2%), subject to the final result of the actual capital increase.