Zoomlion Scraps Listing Plan to Spin off Aerial Machinery Unit

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Zoomlion said the decision was due to the changing market environment and to protect investors’ interests

Zoomlion Heavy Industry Science and Technology Co. Ltd., the Chinese construction equipment giant, has abandoned plans to revamp its aerial machinery business through a separate listing, citing changing market conditions.

The intention, first considered in 2022, was to spin off Zoomlion’s subsidiary Hunan Zoomlion Intelligent Aerial Work Machinery Co. Ltd. for a restructuring and public listing. Under the plan, Luchang Technology Co. Ltd. would acquire 99.5% of Zoomlion Intelligent Aerial Work Machinery while Zoomlion obtained a controlling 53.8% stake in Luchang.

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Zoomlion Heavy Industry scrapped plans to spin off and list its aerial machinery unit due to changing market conditions.
The restructuring involved Hunan Zoomlion Intelligent Aerial Work Machinery and Luchang Technology Co., with Luchang raising 2.5 billion yuan for projects.
Despite the termination, Zoomlion's aerial machinery unit remains its main growth segment, contrasting with declining lifting and concrete machinery sales.

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Who’s Who

Zoomlion Heavy Industry Science and Technology Co. Ltd.: Zoomlion Heavy Industry Science and Technology Co. Ltd. is a Chinese construction equipment giant. Recently, it abandoned plans to restructure and list its aerial machinery business through its subsidiary Hunan Zoomlion Intelligent Aerial Work Machinery Co. Ltd., citing changing market conditions. The terminated restructuring deal involved Luchang Technology Co. Ltd. Despite growth in its aerial machinery unit, Zoomlion has seen significant declines in its lifting and concrete machinery businesses.

Hunan Zoomlion Intelligent Aerial Work Machinery Co. Ltd.: Hunan Zoomlion Intelligent Aerial Work Machinery Co. Ltd. is a subsidiary of Zoomlion Heavy Industry Science and Technology Co. Ltd., specializing in aerial machinery. It was slated for restructuring and public listing through acquisition by Luchang Technology Co. Ltd. Despite demonstrating significant growth, the restructuring plan was abandoned due to changing market conditions and to protect investors' interests.

Luchang Technology Co. Ltd.: Luchang Technology Co. Ltd. was set to acquire 99.5% of Zoomlion Intelligent Aerial Work Machinery and have Zoomlion hold a 53.8% controlling stake in Luchang. The restructuring aimed to raise 2.5 billion yuan for a production project in Mexico and to repay debts. However, the deal was terminated due to changing market conditions.

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What Happened When

February 2022：: Zoomlion proposed to acquire Luchang, kicking off a restructuring of the aerial machinery unit.

2022：: Zoomlion’s lifting and concrete machinery units recorded 48% and 48.4% falls in sales, respectively, while its aerial business expanded by 37.2%.

Late 2022：: Zoomlion saw its major businesses slump due to China’s stringent pandemic controls, a slowing domestic economy, and the housing slowdown.

Last week：: Zoomlion and Luchang decided to terminate the restructuring and public listing deal.

In the first half of 2024：: Zoomlion’s aerial machinery unit maintained its growth but at a slower pace, while the lifting and concrete machinery units continued to decline.

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