This report examines XCMG, one of the largest Chinese manufacturers, and this is the first time that the whole group is profiled. XCMG is essentially a state-owned enterprise, but for years it has been exploring reforms of its ownership structure through the introduction of external investments and core employees’ interests in the business. To assist the reader, it is necessary to clarify the names of the key entities at three levels:

XCMG refers to the Xuzhou Construction Machinery Group, which is the ultimate holding body of all the business lines under its control, and the brand for all its products.

XCMG Limited is controlled by XCMG, but is also shared by a number of other investors. It holds most of the manufacturing and investment assets of the group. It is now the direct parent of the listed company that offers public shares on the Shenzhen Stock Exchange, but in line with the intended reforms, it will soon be eliminated, with all its entities being integrated into the listed company.

XCMG CM, or XCMG Construction Machinery, once called XCMG Science and Technology (XCMG S&T), is the listed company on the Shenzhen Stock Exchange. It controls a number of important product lines and will take over all the entities of XCMG Limited, in line with the on-going reforms.

In Chinese, the XCMG is usually abbreviated as Xugong, with ‘Xu’ representing Xuzhou, the hometown of the manufacturer, and ‘gong’ referring to construction machinery. In this English report, however, XCMG is used to indicate the company, or its subsidiaries, or the brand of its products wherever it is possible and reasonable to do, in order to help the understanding of the reader.