XCMG Achieves Record-Breaking Investment in Commercial Vehicles,Securing 6.444 Billion RMB in Funding

XUZHOU,China,March 1,2025 -- XCMG AUTO,a subsidiary company of XCMG Machinery ("XCMG",SHE: 000425),has successfully secured strategic investments from 30 investors,raising a total of 6.444 billion RMB. This marks China's largest financing deal in the commercial vehicle sector in the past five years.

The signing ceremony of XCMG AUTO's strategic investor was successfully held

The investors in this round include both industry stakeholders,capable of fostering strategic synergies and strengthening the interaction between upstream and downstream supply chains,as well as national-level funds and companies. These financial investors bring valuable capital perspectives that will drive continuous improvements in XCMG's lean management and support the company's high-quality development. This investment showcases the capital market's unwavering confidence in XCMG's reform and development trajectory.

As the commercial vehicle market becomes increasingly competitive,the limitations of traditional development models are becoming evident. This mixed-ownership reform represents not only an infusion of capital but also an integration of resources and the release of new momentum. The reform will enhance collaboration across the industrial chain,drive technological cooperation,and expand market reach,helping XCMG accelerate its development of new energy technologies,sales networks,and after-sales service. This collaborative approach will play a critical role in building a closed-loop ecosystem for the new energy industry chain,injecting fresh energy into the growth of China's new energy sector. XCMG is committed to driving the green and intelligent transformation of the commercial vehicle industry.

In recent years,XCMG has proactively aligned with its dual-carbonstrategy. The company's new energy product lineup covers pure electric,hybrid,and hydrogen fuel cell-powered,serving a broad range of applications including road logistics,construction,municipal sanitation,and mining operations. XCMG's diverse product portfolio is industry-leading in terms of coverage. Through its unwavering glocal strategy,XCMG's international influence continues to grow. The company has already launched KD factory production in the Middle East and Africa,advancing from simple trade export to deep localization and integration within these regions.

In 2024 alone,XCMG's new energy heavy truck sales reached 14,400 units,maintaining the highest total sales and market share in the industry for the second consecutive year. This milestone highlights XCMG's significant leap forward in the new energy sector,setting the stage for further breakthroughs and innovations in the years to come.