XCMG (SHE: 000425), one of the world's largest construction machinery manufacturers, has expanded its global distribution network by signing an agreement with PJ Machine Trade Hungary to provide local customers with equipment sales, rental and after-sales services including earth moving equipment, foundation equipment, mining equipment, and other construction equipment.

This cooperation agreement will specifically help XCMG significantly to expand its European distribution network while accelerating its penetration of the markets in Hungary and neighboring countries.

"I would like to extend my congratulations to PJ for becoming XCMG's distributor in Hungary," said Liu Jiansen, Vice President of XCMG Machinery and General Manager of XCMG Import & Export. "Hungary serves as a key hub for European strategy and this cooperation between the two sides will see XCMG leverage PJ's strong network as a means to continuously promote the company's green and innovative development concept; we hope that both sides will work together on creating solid results."

PJ Machine Trade Ltd., a joint venture specializes in selling XCMG products in Hungary. In the ten days that have passed since the two parties signed the agreement, XCMG has secured orders for 23 machines.

The Hungarian government has followed a recent policy of vigorously developing the country's construction industry with solid results so far. In addition to selling equipment, Hungary is also home to a strong demand for rental equipment, an area of interest for XCMG and PJK Machine Trade. Both sales and leasing operations require strong financing capabilities. The Hungarian Central Bank will assist PJ Machine Trade in preparing to set up a leasing company specifically for selling and leasing financing for XCMG equipment. In the future, the sales business will expand to seven countries around Hungary, so that XCMG's dealership coverage secures solid coverage across Central and Eastern Europe.

"PJ is honored to be XCMG's Hungarian distributor following the signing of the contract on the sidelines of the recently concluded Bauma 2022 event in Munich, Germany," said PJ Machine Trade General Manager, Potik László. "Leveraging XCMG's global brand influence, PJ Machine Trade obtained more than 30 equipment orders at the show. With the recovery of the global economy and the development of the construction sector in Hungary, we will make full use of our influence and gradually improve our channel network."