On December 24, Weichai Power signed a cooperation agreementwith Shenhua Group and Entropy Zero Group to set up theNational Large Energy Equipment Innovation Strategic Alliance, to jointly develop large mining truck engines and related components.

It is understood that on a global scale, large mining truck holding numberisabout 25,000.The domestic ownership number is about 5,000, and domestic annual sales number is about 1,000. The market of engine application, replacement, overhaul and daily maintenance is about 25 billion yuan per year.

To break the situation of foreignmonopoly, Weichai Power,Shenhua Groupand Entropy Zero Group reached a cooperation agreement to jointly develop large mining truck engines and related components to promote upgrades of China's large energy equipment products.

Shenhua Group is China's largest and most modern coal enterprises and the world's largest coal dealer.Adhering to the mine, road, port, electricity and chemistrybusiness integration, Shenhua Group is committed to building a world-class large-scale energy company. Entropy Zero Group is a pioneer in the creative labor industry in the field of scientific and technological innovation, and has formed its own core competence in the fields of scientific and technological ideological innovation, transformational technology creation and intellectual property rights.

Weichai is one of the strongest and most comprehensive automobile and equipment manufacturing groups in China.It is also a global all-aroundpower supplierwithChina-leading and world-class independent innovation strength. Weichai has built up a high-quality international talent teamwith rich independent research and development experiences to create the world-class, high-value productswith most cost, core technology and quality competitiveness, providing customers with differentiated and high value-added services.

Tan Xuguang,chairman of Shandong Heavy Industry Group andWeichai Group, said thatWeichai, Shenhua andEntropy Zero area strong fit in strategic positioning, resource sharing and industrial chain coordination.This is a powerful combination, an important choice for the win-win situation, and a way to further enhance the core competitiveness and influence for all three groups. At the same time, itwould be an important move forWeichai to actively implement social responsibility and the strategy of using manufacturing to rejuvenate the country as the industry leader, as well as to speed up breakthroughs in technology bottlenecks to promote China's large-scale energy equipment product upgrades to become the pillar of a powerful country.