6.97 billion new shares were listed, and XCMG completed the overall listing

6.97 billion new shares were listed on the same day, marking the completion of the overall listing of XCMG Co., Ltd., which lasted nearly a year and a half. The capital market ushered in the "new XCMG", and China and even the world's construction machinery The industry landscape will usher in new changes.

In late September 2020, XCMG successfully signed a strategic investment contract, attracting 21.056 billion yuan in investment, taking a solid step forward in the mixed ownership reform. Adhering to the basic principles and overall requirements of XCMG Co., Ltd.’s mixed-ownership reform, with the goal of improving the comprehensive competitiveness of listed companies and further activating systems and mechanisms, after the implementation of XCMG Co., Ltd.’s mixed-ownership reform, the overall listing will follow closely. On April 7, 2021, Xugong Machinery (000425) suspended trading to plan major asset restructuring matters.

This reorganization injects high-quality assets into the listed company. XCMG Co., Ltd.’s excavating machinery, concrete machinery, mining machinery, tower cranes and other engineering machinery production supporting assets are fully injected into the listed company, and the underlying assets are priced 38.686 billion yuan. Based on the issuance price of 5.55 yuan per share, the number of issued shares is approximately 6.970 billion shares, all of which are tradable shares with sales restrictions. After this transaction, all 2.986 billion XCMG Machinery shares held by XCMG Co., Ltd. will be cancelled, and XCMG Group will become the controlling shareholder and actual controller of the listed company.

After the 6.97 billion new shares were listed, the total share capital of the listed company became 11.819 billion shares. After achieving overall listing, "New XCMG" can use the financial support of the capital market to further promote business synergy and improve operational efficiency. The listed company will achieve full product coverage of construction machinery, the corporate governance structure will be further optimized, and management and operational efficiency will be further improved. It will help improve the comprehensive competitiveness and risk resistance of listed companies, and help the company accelerate its transformation into a leading company in the global construction machinery industry.

In fact, after the implementation of XCMG’s mixed-ownership reform plan, the company’s vitality has continued to increase, its performance flexibility has gradually been released, and its development speed has increased significantly. Analysts believe that in the long term, XCMG Co., Ltd. will complete the mixed-ownership reform and the employee stock ownership platform will increase capital by 870 million yuan. After the restructuring, vitality will be released, management will be improved, and product structure will be optimized.

Wang Min, Chairman and Party Secretary of XCMG Co., Ltd. and The important thing is that if you go up, you can't get down." Today, China's capital market has ushered in the enterprising "New XCMG"; in the future, the world's construction machinery will present a different "new pattern."

Original title: 6.97 billion new shares were listed today, and XCMG completed the overall listing