Shares of General Science Technology pledged

Two thousand restricted shares of Jiangsu General Science Technology Co., Ltd. was pledged by its controlling shareholder Hongdou Group Co., Ltd. to Bohai International Trust Co., Ltd. for loans.

The shares will be pledged for 60 months and the pledge registration procedure had been finished by the Shanghai branch of China Securities Depository and Clearing Corp. Ltd..

Hongdou Group said it will pay back the loans with the operating profits and investment returns. If there is a liquidation risk, the group will add supplementary pledge or repurchase the pledged shares in advance.

Hongdou Group owns 532 million shares in Jiangsu General Science Technology, accounting for 73.19% of the latter’s total equity.

The pledged 20 million restricted shares account for about 3.76% of Hongdou’s stake in Jiangsu General Science Technology, or 2.75% of the latter’s total equity.

It is the third listed domestic tire company pledging shares in the first half of 2017.

Du Daiyu, board chairman of Sailun Jinyu Group, pledged 130 million of his unrestricted shares to CITIC Securities for stock pledge repo business.

Giti Tire (China) Investment Co., Ltd., the controlling shareholder of Giti Tire Co., Ltd., also pledged 151 million untradeable shares of the latter to the Shanghai branch of China Merchants Bank Co., Ltd..