Lingong Machinery Group Issues Announcement

Lingong Group Announces Agreement with Volvo Construction Equipment on Equity Transfer of Shandong Lingong.

Lingong Group announced that, following friendly negotiations with Volvo Construction Equipment (VOLVO CE), both parties have officially signed an agreement under which Lingong Group, through a newly established fund, will acquire (referred to by Volvo as a sale) 70% of the equity in Shandong Lingong Construction Machinery Co., Ltd. (hereinafter referred to as “Shandong Lingong”) held by Volvo CE.

Upon completion of the transaction, Lingong Group will assume full ownership and operational control of Shandong Lingong.

Over the past 19 years of cooperation between Shandong Lingong and Volvo, the company has made significant progress. Sales revenue and total tax and profit contributions have achieved a compound annual growth rate of over 10%. During this period, Volvo has provided strong support in areas such as products, quality, technology, and management, greatly enhancing Shandong Lingong’s capabilities in product development, lean manufacturing, and quality control. This has played a vital role in improving the company’s competitiveness, brand image, market share, and overall economic performance. The cooperation between the two parties has been a successful one.

Given the current complex domestic and international market landscape, intensified competition in the domestic industry, restructuring in the global market, and geopolitical factors—especially Lingong’s need to accelerate international expansion and advance its global industrial layout—both parties believe that this transaction will be beneficial for their long-term development.

This announcement is hereby made.

Linyi Lingong Machinery Group Co., Ltd.

June 24, 2025