XCMG Machinery Raises $90.7 Million in Capital Xugong Made in Brazil

Xugong Machinery announced on Sunday that the company intends to increase capital of US$99.7 million in cash to Xugong Group Brazil Manufacturing Co., Ltd. through Xugong Group (Hong Kong) International Trading Co., Ltd. This outbound investment constitutes a related party transaction.

XCMG Brazil manufactures, imports, exports, installs, manufactures and sells construction machinery, parts and accessories, as well as third-party engineering management, maintenance of earthworks, roads, construction machinery and tractors. After the capital increase, Xugong Hong Kong trade held Xugong Brazil to make 99.8% of the shares.

Xugong Machinery said that this capital increase is mainly to support the company's "internationalization" strategy and further enhance the company's ability to expand the international market. The capital increase will be used to expand the capital of XCMG Brazil, which will effectively improve the asset structure of XCMG Brazil, reduce the scale of liabilities, reduce exchange rate risks, and strengthen XCMG Brazil's ability to create risk-resistance and capital operations. This will accelerate the establishment of XCMG Brazil Industrial Park and speed up Xugong Machinery's South American business integration has played a positive role in promoting.