On June 24, Linyi Lingong Machinery Group Co., Ltd. issued an announcement declaring that, after friendly negotiations with Volvo Construction Equipment (VOLVO CE), the two parties have formally signed an agreement under which Lingong Group, through a newly established fund, will acquire (referred to by Volvo as a sale) the 70% equity stake held by VOLVO CE in Shandong Lingong Construction Machinery Co., Ltd. (hereinafter referred to as Shandong Lingong).

Upon completion of the closing of this agreement, Lingong Group will control the ownership and operational management rights of Shandong Lingong.

The full text of the announcement is as follows.

Lingong Group announces that, after friendly negotiations with Volvo Construction Equipment (VOLVO CE), the two parties have formally signed an agreement under which Lingong Group, through a newly established fund, will acquire (referred to by Volvo as a sale) the 70% equity stake held by VOLVO CE in Shandong Lingong Construction Machinery Co., Ltd. (hereinafter referred to as Shandong Lingong).

Upon completion of the closing of this agreement, Lingong Group will control the ownership and operational management rights of Shandong Lingong.

Over the 19 years of cooperation between Shandong Lingong and Volvo, the enterprise has achieved substantial development, with the compound annual growth rates of both sales revenue and taxes and profits realized reaching over 10%. During this period, Volvo provided strong support in areas such as products, quality, technology, and management, and Shandong Lingong's strength in core areas including product research and development, lean manufacturing, and quality control has been greatly enhanced, playing an important role in enabling the enterprise to participate in market competition, build its brand image, and increase its market share and economic benefits. The cooperation between the two parties has been a success.

At present, in the face of the complex domestic and international market situation, affected by factors such as intensifying competition in the domestic market and industry, industrial restructuring in the international market, and the geopolitical landscape, and in particular the need for Lingong to accelerate its international development and advance its global industrial layout, both parties believe that this transaction will be conducive to the long-term development of both parties in the future.

In future development, both parties will still have opportunities to carry out strategic cooperation in various forms across multiple business areas, jointly achieving better development.

Hereby announced.

Linyi Lingong Machinery Group Co., Ltd.

 June 24, 2025