Xugong Machinery announced on the evening of April 6 that the company intends to implement the merger by issuing shares to all shareholders of the controlling shareholder Xugong Group Construction Machinery Co., Ltd. (hereinafter referred to as "Xugong Co., Ltd.").

According to the current situation, this reorganization is expected to constitute a major asset reorganization. Upon application, the company's stocks will be suspended from the market opening on April 7, and it is expected that the suspension will not exceed 10 trading days.

21 billion yuan will be introduced through mixed reform in 2020

As early as September 2020, XCMG Co., Ltd. ushered in a major event: the company's mixed ownership reform strategic investor signing ceremony was held in Nanjing. According to an article published on the official website of XCMG, Ma Xin, then deputy governor of Jiangsu Province, Zhou Qiaoling, deputy director of the Reform Office of the State-owned Assets Supervision and Administration Commission of the State Council, Zhou Tiegen, secretary of the Xuzhou Municipal Party Committee, and Li Mingzhong, deputy general manager of the Shenzhen Stock Exchange, attended the signing ceremony. At the signing ceremony that day, Xuzhou Construction Machinery Group Co., Ltd. successfully signed equity transfer agreements totaling 5.4 billion yuan with three state-owned holding companies, and XCMG Construction Machinery Co., Ltd. successfully signed agreements with 12 strategic investors and employee shareholding platforms. A capital increase agreement totaling 15.656 billion yuan. Xuzhou Xugong Jinfan leads the corporate management consulting partnership as an employee shareholding platform. This capital increase project used 2.7% of the shares as employee shareholding.

Through this mixed reform, XCMG successfully attracted 21.056 billion yuan in capital.

"This is another reform with far-reaching influence and significance since the establishment of the group in 1989, and it is also a major opportunity." In the view of Wang Min, Chairman of XCMG, the successful signing of this capital increase agreement has brought in strategic synergy. Working together with high-quality strategic investors with financial strength to make the equipment manufacturing industry stronger, stronger and larger will surely endow this 77-year-old company with new market vitality, competitive vitality, institutional vitality and youthful vitality.

It is worth noting that the reform and development of XCMG Co., Ltd. has received great attention from the State-owned Assets Supervision and Administration Commission of the State Council and the Jiangsu Provincial Party Committee and Provincial Government. Zhou Qiaoling, deputy director of the Reform Office of the State-owned Assets Supervision and Administration Commission, pointed out in his speech at that time: The mixed reform of state-owned enterprises adheres to the idea of actively and steadily deepening. Xugong's mixed reform is a representative of modern state-owned enterprises and must be implemented as soon as possible to achieve results. Xu Guoping, director of the Jiangsu Provincial State-owned Assets Supervision and Administration Commission and Secretary of the Party Committee, said: Investing in an equipment manufacturing enterprise with important industry status and influence like XCMG is in line with the functional positioning of the state-owned capital investment and operation company and its main business development direction, and reflects the provincial state-owned capital. The clear orientation to support XCMG's mixed reform reflects the confidence of provincial state-owned capital in the future development of XCMG. XCMG Machinery is the listing platform of XCMG Co., Ltd. At that time, some analysts believed that with the gradual implementation of the mixed reform of XCMG Co., Ltd., XCMG's high-quality assets including excavation machinery are expected to be injected into the listing platform, which will help the group in international competition. leading.

Ranked 4th in the world's top 50 list

XCMG put forward the "Mount Everest" plan several years ago, that is, as soon as possible to achieve the goal of entering the world's top five and top three, and top the "Mount Everest" in the world's construction machinery industry. Wang Min, Chairman of XCMG Co., Ltd. said, “XCMG has reached a very critical stage in its high-quality development. To achieve the top five, top three, and Everest summit strategic goals we promised to General Secretary Xi, the mixed reform is the key that must be taken. step."

Since the inspection by General Secretary Xi Jinping in 2017, XCMG's various operating indicators have hit historical highs year after year. In 2018, 2019, and 2020, its operating income continuously exceeded 100 billion yuan-XCMG is also the first 100 billion-level enterprise in China's construction machinery industry. It is understood that XCMG has the world's largest market share of wheeled cranes, complete sets of concrete machinery and piling machinery are among the top two in the world's industry, and it has entered the top five of the world's top five open-pit mining excavation and transportation manufacturers. At present, XCMG has 15 overseas manufacturing bases including Brazil manufacturing base, KD factories or joint ventures, and has acquired 3 European companies including German Schwing. The total annual exports and overseas income continue to rank first in the Chinese industry.

On May 18, 2020, the British KHL Group released the "2020 Yellow Table of the Top 50 Global Construction Machinery Manufacturers". A reporter from Securities Times•e Company noticed from the list that the top three They are Caterpillar of the United States, Komatsu of Japan, and Deere of the United States. XCMG jumped from sixth in 2019 to fourth in 2020, and Sany Heavy Industries ranked fifth.

A-share "construction machinery brother" wants to change ownership?

The announcement disclosed by Xugong Machinery in September 2020 shows that after the completion of the mixed reform, Xuzhou Construction Machinery Group Co., Ltd. (ie "Xugong Group") holds 34.0988% of the shares of Xugong Co., Ltd., and remains the controlling shareholder of Xugong Co., Ltd. and the actual company of Xugong Machinery. Controller.

Xugong Machinery's current total market value is 58.6 billion yuan, and the 2020 annual report has not yet been disclosed. Let's first take a look at the 2019 data. Xugong Machinery achieved total operating income of 59.176 billion yuan and net profit of 3.621 billion yuan that year. In the first three quarters of 2020, XCMG Machinery achieved operating income of 51.287 billion yuan, which is close to the revenue scale of the whole year of 2019.

According to the research report of Pacific Securities, the controlling shareholder of XCMG Machinery covers high-quality assets such as excavators, mining machines, tower cranes, and concrete. The sales of excavators in 2019 were 35,000 units, a year-on-year increase of 41.1%, firmly occupying the second place in China. , The new mining machine base was put into production, and 1.5 billion orders were obtained in the fourth quarter of 2019, making it one of the top five global open-pit mining excavation and transportation manufacturers; the tower crane revenue exceeded 3 billion, ranking second in China; the scale of the two Schwing concrete businesses reached 100 Billion. If it is placed in a listed company, XCMG will undoubtedly be even more powerful.

At present, Sany Heavy Industry is still the A-share "construction machinery brother", with a total market value of 296.1 billion yuan. The annual report shows that in 2020, Sany Heavy Industry achieved total operating income of 100.054 billion yuan, a year-on-year increase of 31.25%; net profit attributable to shareholders of listed companies was 15.431 billion yuan, a year-on-year increase of 36.25%. As of December 31, 2020, the company's total assets were 126.255 billion yuan, and the net assets attributable to shareholders of listed companies were 56.562 billion yuan.

At the time of the mixed reform in 2020, XCMG said that under the new mechanism of "red genes + state-owned enterprise advantages + private enterprise mechanism", XCMG will further realize the overall level of securitization, maximize benefits and maximize shareholder returns. In the future, not only the scale will be the first, but also the leading efficiency. The product quality, technical level, profitability, management level and comprehensive competitiveness will reach the world's first-class level." At that time, the company emphasized, "We must also make great achievements in the capital market and truly build To become the most attractive and attractive enterprise in the capital market."

If XCMG achieves an overall listing, the A-share "construction machinery brother" may change ownership.Editor/Bao Hongying