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Securities Times reporter Ye Lingzhen

Following the commitment in August last year not to reduce holdings within 12 months, the controlling shareholder of Guizhou Tire (000589) voluntarily extended the period of no reduction.

On the evening of August 4, Guizhou Tire issued an announcement that its controlling shareholder Guiyang Industrial Investment Co., Ltd. (hereinafter referred to as "Guiyang Industrial Investment") intends to extend its previous commitment not to reduce its holdings of shares and will not reduce its holdings of the company's shares in any way within 12 months from August 30, 2024 (i.e. from August 30, 2024 to August 29, 2025). As of now, Guiyang Industrial Investment holds 319 million shares of Guizhou Tire, accounting for 20.48% of the total share capital.

On August 30, 2023, Guiyang Industrial Investment made a commitment not to reduce its holdings of the company's shares within 12 months from August 30, 2023. According to the time calculation, the above commitment will expire on August 29, 2024. However, based on the confidence in the company's future development prospects and recognition of its long-term investment value, Guiyang Industrial Investment made another commitment before the expiration of the above commitment, extending the period of no reduction to one year later in order to safeguard the rights and interests of investors and the stability of the capital market.

In the secondary market, Guizhou Tire's stock price has fallen by more than 20% since May, and closed at 4.78 yuan per share, with a market value of 7.434 billion yuan.

In addition to the controlling shareholder not reducing its holdings, Guizhou Tire is currently actively promoting a repurchase plan to boost market confidence. According to the plan, the company intends to spend 30 million to 50 million yuan to repurchase shares, which will be used for equity incentive plans at an appropriate time in the future. As of the end of July, Guizhou Tire has repurchased 5.7921 million shares, with a total amount of 31.9919 million yuan, which has exceeded the lower limit of the repurchase plan.

Regarding stock price fluctuations, Guizhou Tire said that the company has always attached great importance to market value management, has implemented two share repurchases and equity incentive plans in recent years, but the actual performance of the stock price is also affected by multiple factors such as the macroeconomic environment, relevant policies, company performance, and changes in investor sentiment.