XCMG Creates Strong Partnership with Tsingshan Group to Build New Energy Base for NEV R&D and Production

XUZHOU,China,Feb. 19,2021 --Leading construction machinery manufacturer XCMG (000425.SZ) is joining hands with Tsingshan Holding Group,the world's biggest stainless steel producer with a focus on new energy,to invest 5.5 billion yuan (US$852.85 million) in establishing the XCMG Tsingshan New Energy Industrial Base (the "Base") in Xuzhou that will specialize in developing technologies,products,sales and services of new energy vehicles (NEV),batteries,electric motor control systems and other parts.

XCMG Creates Strong Partnership with Tsingshan Group to Build New Energy Base for NEV R&D and Production

The project will cover 0.26 square miles in total,with the first phase estimated to build half of the base with an investment of 2.5 billion yuan (US$387.76 million).

"The Base projects 10 billion yuan (US$1.55 billion) in annual sales revenue and 200 million yuan (US$31 million) in annual tax upon completion and will greatly advance R&D,production and sales of XCMG NEV products while further consolidating our technological advantages in the field of electric products and services," said Donghai Luo,Deputy GM of XCMG and GM of XCMG Automobile Business Unit.

Since the Xuzhou Base was put into operation in 2015,XCMG Automotive has been able to achieve 30 percent growth every year and exceeded the 10-billion mark in 2020.

In 2020,XCMG advanced a series of major projects including electric muck trucks,tractors and mixer trucks as well as new energy cold chain trucks,mining trucks,8-ton compressed garbage trucks,barrel trucks,18-ton sweeper-washer trucks,dust suppression trucks,along with loaders and port machinery that features multiple specifications.

With one of the most comprehensive product lineups,strongest R&D and a leading overall electrification solution,XCMG Automotive is now a top three ranking company in the domestic new energy heavy truck market. Internationally,XCMG exported its first flagship NEV product the E300 logistic cargo truck in 2018,followed by an off-road electric mining dump truck entering the markets of developed countries a year later.

"We aim to devote great efforts in building the core industries related to vehicle integration technology and core components in the next few years,transforming the NEV business into a billion-yuan strategic sector and major growth point in the XCMG industrial chain," noted Luo.

For more information,please visitwww.xcmg.com,or XCMG pages on Facebook,Twitter,YouTube,LinkedInand Instagram.