2025.03.06
Xuzhou XCMG Automobile Manufacturing Co., Ltd. ("XCMG Automobile") recently signed contracts for its mixed-ownership reform. XCMG Automobile completed its equity diversification reform, introduced approximately 30 strategic investors and raised funds in a total amount of RMB 6.444 billion. Acting on behalf of multiple investors, JunHe conducted legal due diligence on XCMG Automobile, participated in the negotiation and modification of the transaction documents, and assisted in the closing.
XCMG Automobile’s mixed-ownership reform is an important initiative and key step in deepening the reform of state-owned enterprises. It aims to improve the corporate governance structure and establish a more market-oriented, law-based, and standardized modern enterprise system. An approach combining equity transfer with capital increase was used in this project. China Guoxin and CCB Investment acted as the lead investors. BOC Asset Investment, National Green Development Fund and SDIC Fund acted as the co-lead investors. Approximately 30 strategic investors were introduced and equity incentives were implemented. A total of RMB 6.444 billion was raised, setting a record in the commercial vehicle financing field in China over the past five years.
With their extensive experience in mixed-ownership reforms of state-owned enterprises and their deep understanding of the regulatory environment of the automotive industry, the JunHe team advised multiple investors on their participation in the mixed-ownership reform of XCMG Automobile. JunHe’s team provided clients with comprehensive, precise and valuable legal advice regarding the demonstration of the transaction plan, legal due diligence, negotiation of the transaction documents, and the closing process. While maximizing the interests of the clients, JunHe promoted the successful completion of the project. They received high praise from both the investors and XCMG Automobile for their pragmatic and professional services, making this another major success for JunHe in advising on the mixed-ownership reforms of large state-owned enterprises.
Partner TANG, Jie led the JunHe team and partner FU, Wenyao was responsible for the specific work.
