Xu 9.5 million USD set up investment company in Brazil

February 22, Xugong Machinery (000425. SZ) issued an announcement that the company wholly owned subsidiary Xugong Group (Hong Kong) International Trading Co., Ltd. (hereinafter referred to as "Xugong Hong Kong Company") plans to invest $9.5 million in cash and jointly with Xugong (Hong Kong) International Development Limited (hereinafter referred to as "Xugong Group Hong Kong Company") to set up Xugong Brazilian investment Co.　　The two shares hold 95% and 5% respectively. The announcement shows that Xugong Brazilian investment company registered capital of 10 million U.S. dollars, Xu Machinery Hong Kong and Xugong Group Hong Kong companies each contributed 9.5 million U.S. dollars and 500,000 U.S. dollars.　　The two sides signed the "Mutual investment Agreement" in Xuzhou on February 18.　　The announcement said that the investment in Brazil to set up a company is to implement the company's internationalization strategy, vigorously expand the South American market, enjoy Brazilian "national" preferential treatment. Prior to January 21, the company announced the proposed issuance of H-shares, not more than 20% of the company's total share capital issued after the issue, and to the global book issuer does not exceed the above issued the number of H shares of 15% of the excess placement rights.　　and announced that some of the funds will be used to expand international business. Since 2010, the domestic construction machinery industry several leading companies more and more fierce competition, and Xu Machinery's revenue growth rate has lagged behind 31 heavy industry and Zoomlion, the first 3 quarters of the company to achieve sales revenue of 18.9 billion yuan, and 31 heavy industry and Zoomlion in the first 3 quarters of sales revenue of 25.9 billion yuan and 23.9 billion yuan respectively.　　In addition, the 31 heavy industry and Zoomlion has initiated the issuance of H-shares, the process of internationalization of xugong is slightly behind.　　On the same day, the company also signed with the controlling shareholder Xugong Group "equity transfer Agreement", plans to buy Xuzhou Xugong road Construction Machinery Co., Ltd. 100% of the equity. February 21, Xu Machinery reported a 57.26 yuan, rose 1.35%.