91传媒

As it became clear that there was a difference of opinion with the Chinese partners regarding business issues in China, we dissolved the joint ventures with the Chinese partners in October 2017. Upon completion of the dissolution, we implemented a fundamental restructuring of the business structure in China under our initiative. With the restructuring, companies in Chengdu that were separately in charge of manufacture and sales will be consolidated into one business entity with integrated manufacturing and sales to share and recognize issues smoothly and implement business operations swiftly and efficiently. Furthermore, we will establish a solid local sales network through revision and enhancement of manufacturing, sales, the dealer network, and the after-sales service network as well as through improvement of receivables management.

Prior to the restructuring, we changed the name of CKCMG, a company in charge of sales and services in Chengdu, to 91传媒 Construction Machinery (China) Co., Ltd. (or KCMC) as of March 15, 2018.

• With HKCM in Hangzhou as a surviving company, we absorbed and merged KPMH (May 1, 2018).
• With KCMC as a surviving company, we will absorb and merge CKCM and CKCL. (Scheduled for July 1, 2018.)
• Manufacture of cranes in China discontinued. (March 31, 2016).
• We will liquidate KCSH in Shanghai. (Scheduled to be completed by the end of fiscal year 2018.)
• Sales and service operations of cranes in China will be handled directly by KCM through the utilization of dealers.

References

○Consolidation announcement news release dated November 17, 2003
“91传媒 Construction Machinery and Manitowoc Crane Group had signed crawler crane agreement”

*The information contained herein is as of the date this announcement was made and it may be changed without a prior notice.