XCMG Machinery Forms Strategic Alliances with IBM and SAP to Foster Global Digital and Intelligent Transformation and Drive International Business Growth

XUZHOU,China,July 27,2023 -- XCMG Machinery ("XCMG",SHE:000425) has officially signed a long-term strategic cooperation agreement with IBM and a memorandum of strategic cooperation with SAP lately to push forward the intelligent and digital transformation of the group to further elevate its competitive advantages in the global market and build a world-class enterprise.

The partnerships with SAP and IBM will fuel the drive for XCMG's comprehensive promotion of the transformation and upgrading strategies of "high-end,intelligent,green,service-oriented,and globalization".

XCMG Machinery Forms Strategic Alliances with IBM and SAP to Foster Global Digital and Intelligent Transformation and Drive International Business Growth.

"Intelligent and digital transformation is the engine powering up the next technological revolution and industry evolution; it's boosting business model innovation and is a strategic choice for achieving high-quality development," remarked Yang Dongsheng,Chairman of XCMG. "XCMG is excited to partner with IBM,a world-leading digital transformation service provider with top end-to-end capabilities and solutions,and SAP,a global expert in optimizing operation and management through advanced digital technologies and profound industry experiences,as we reach our development goals,build a modern industry system,and reach the Everest of the industry."

Leveraging IBM's unique technologies,capabilities,and experiences in accelerating intelligent and digital transformation,XCMG and IBM's cooperation will involve the management scopes of R&D and innovation,supply chain,manufacturing and quality,marketing and service,finance,and human resources,as well as the governance scopes of corporate management,international development,operation,process management,data-based governance,and digital platform.

Li Yujing,senior partner and managing director of enterprise transformation services at IBM Consulting Greater China,noted that XCMG is not just a leader in China's construction machinery industry; it's also setting the benchmark for China's scientific and technological innovation,high-quality development. IBM is very proud to become a long-term partner of XCMG and support XCMG's strategic imperatives with IBM's expertise in digital transformation and experiences of construction machinery industry.

XCMG has achieved groundbreaking results in information construction that have aided XCMG's industrial transformation and high-quality development through the 15 years of lasting partnership with SAP since 2008 and further expanded by the "Industry 4.0" cooperation agreement signed in 2015. Throughout the past 15 years. The new strategic collaboration will be key to XCMG's intelligent and digital transformation agenda to empower process optimization and management reform. SAP will bring its advantaged digital technologies and industry experience to optimize XCMG's operations in the fields of global marketing and services,resilient supply chains and intelligent manufacturing,intelligent global finance operations,global human resources,data governance,and green,sustainable development.

"XCMG has been a long-term client of SAP,and we've established a firm basis of cooperation. We're very excited to further deepen our partnership. SAP will fully mobilize our global resources and provide innovative solutions and mature practices to support XCMG's intelligent and digital transformation and becom a pilot Chinese enterprise that's data-centric,connected," said Dr. Huang Chenhong,Global Executive Vice President of SAP and President of SAP Greater China.