Board of Directors of XGMA Machinery Co., Ltd. (XGMA) announced a temporary decision, agreeing its full-funded subsidiary Xiamen Xiagong International Trading Co., Ltd. to increase capital of RMB 20 million Yuan. Till then, the registered capital of Xiamen Xiagong International Trading Co., Ltd. will be RMB 40 million Yuan. Meanwhile, Xiamen Xiagong International Trading Co., Ltd. was also agreed to establish XGMA (Hong Kong) Co., Ltd. and XGMA (Ethiopia) with registered capital of 1 million dollars and 1 million Birr (about 110,000 dollars) respectively, total investment of 2 million dollars and 450,000 dollars.

Beyond expanding overseas market, XGMA adopted development strategy of upgrading products and enriching product lines. Currently, the loader products of XGMA have been upgraded in 2008. XGMA continued to increase investment on excavator, forklift and small-scaled construction machinery, predicating to form scaled production of excavators in 2009 as the new profit increase point. Specially speaking, the Northern base XGMA constructed in Jiaozuo has finished the first phase project, reaching the designed production capacity of 5000 sets.

About XGMA

Xiamen XGMA Machinery Co., Ltd. (abbreviated as XGMA), developed from the former Xiamen Engineering Machinery Works founded in 1951, and was on the listing of Shanghai Stock Exchange in 1993 after conversion of ownership system. XGMA is rated as national categoryⅠ large-scale backbone enterprise on manufacturing loaders and excavators. As one of the key 512 enterprises with special attention from the National Economy and Trade Committee, XGMA is authorized to operate import and export business autonomously. XGMA has been ranked among China's Top 500 Industrial Enterprises, China's Top 500 Enterprises with Excellent Economic Benefits and "the backbone of China industry---the 500 state-owned enterprises" for consecutive years since 1988. In October 2003, XGMA loader production output and sales volume took the lead in China to reach 10,000 sets a year. In September 2004, XGMA was honored "China Top Brand". In 2005, XGMA brand was conferred with the title of "China Well-known Trademark".  In 2004, XGMA Industrial Park was completed and put into production, covering an area of 1.35 million square meters. The Park which has an annual production capacity of 30,000 sets of loaders, 2,000 sets of excavators and 3,000 sets of forklift trucks is the largest construction machinery production base in China.