Dec. 31, 2009 (China Knowledge) - XCMG Construction Machinery Co Ltd<000425>, formerly known as Xuzhou Construction Machinery Science & Technology Co Ltd, has announced that it plans to issue between 50 million and 165 million new shares for up to RMB 5 billion to fund nine projects, sources reported.

One of the nine projects, a large all-terrain truck crane project, will cost a total of RMB 2.08 billion. It is expected to reap RMB 4.09 billion in sales revenue and to realize RMB 651 million in net profit.

The additional sales revenue from the expansion of a plant that makes crawler cranes will hit RMB 1.38 billion, and the additional net profit will reach RMB 225 million.

A third project, related to machinery components, will reap an estimated RMB 1.05 billion in revenue and realize RMB 151 million in net profit. It will cost RMB 710 million.

The engineering machinery manufacturer predicted that the nine projects will add RMB 15.05 billion in sales revenue and 2.26 billion in net profit in total. In the first three quarters of this year, the firm's operating revenue amounted to RMB 14.25 billion, and its net profit was RMB 1.31 billion.

On Jul. 25, 2008, the company issued around 340 million shares for RMB 16.47 apiece to parent Xuzhou Construction Machinery Group to raise money to enter the capital market.