Xugong Road Construction 100% Equity injection Xugong Machinery

Our correspondent Wang Jinxu Machinery (000425) The controlling shareholder Xugong Group Construction Machinery Co., Ltd. to fulfill the commitment of the reorganization, February 18, 2011 with Xugong Machinery in Xuzhou signed the "Equity transfer Agreement", Xuzhou Xugong Road Machinery Co., Ltd. plan to transfer 100% of the equity agreement to the xugong machinery. The company said that the transfer is to achieve the company's limited in 2009 to implement the major assets reorganization of the commitment made, but also in order to eliminate the company and Xugong Road building related transactions, and is conducive to the company to build more complete construction machinery product line, better realize the company in product development, procurement,　　The synergy effect of after-sale service and marketing channel. Xugong Limited in the company 2009 major asset reorganization commitment, in the major asset reorganization delivery date (July 31, 2009) After five years, in Xugong road construction through cultivation, its main products market share ranked forefront of the same industry, asset quality has been significantly improved, profitability, The construction of Xugong Road will be injected into the company at the right time.　　At present, the main products of Xugong road construction market share ranked the forefront of the same industry, asset quality has been significantly improved, profitability is strong, so the company to buy Xugong Limited owned Xugong Road construction 100% of the equity can realize Xugong Limited in 2009 when the major asset restructuring commitments.　　This transaction is based on the evaluation results of the evaluation report issued by the provincial Sasac for the record and evaluation of the transaction, and this transaction price is the result of the above evaluation. Xu Machinery announced at the same time, in order to implement the company's internationalization strategy, vigorously expand the South American market, enjoy the Brazilian national preferential treatment, the company plans through the Xugong Group (Hong Kong) International Trade Limited and Xugong (Hong Kong) International Development Limited in Brazil to invest in the establishment of Xugong Brazilian Investment Co. Among them, Xugong Group (Hong Kong) International Trading Co., Ltd. funded 9.5 million U.S. dollars, the shareholding ratio of 95%, Xugong (Hong Kong) International Development Co., Ltd. Capital contribution of 500,000 U.S. dollars, the shareholding ratio of 5%.