On September 19, Jiangsu General Science Technology Co., Ltd. (stock abbreviation: “GS”, stock code: 601500) subordinate to HOdo Group was grandly listed on Shanghai Stock Exchange.
At 9:30, in the call auction period of GS, the opening price was high to 19.91%; while in the continuous auction period, it reached RMB 7.08 Yuan/share and sharply rose by 43.90% compared with the issue price of RMB 4.92 Yuan/share, which hit the increase limit for the first day of the listing and was firmly kept at limit up.
In the speech of Gu Cui, the president of Jiangsu General Science Technology Co., Ltd., he said that the company would continuously focus on industry, make full use of the capital market platform and establish the high-end national tire brand to become a Chinese tire benchmarking enterprise with international influence.
It is learnt that this time, the issue price of GS stock was RMB 4.92 Yuan/share, the public offering of shares reached 174.919085 million shares, the general capital stock was 726.919085 million shares after the public offering, and the total raised funds were RMB 860.601898 Million Yuan. Deducting from the issue expenses, the raised funds will be invested in the “All-steel Engineering Project Stage II” and “Construction Project of Tire Technical Research Center”. After the projects are completed and put into production, GS will form a balanced layout in several fields of the all-steel radial tire products, including the short distance, medium and short distance and medium and long distance, remarkably improve the production capacity of the all-steel radial tires and the independent research and development ability of the professional tires, and build a domestic first-class tire research, development and inspection platform.
Since the foundation in 2002, GS has been engaged in the production and sales of tire products, whose leading products include all-steel radial tires and bias tires. In the Top 75 Global Tire Ranking List of 2016 issued by American Tire Business recently, the tire sales of GS ranked 37th.
According to the issue announcement, this company defined its long-term, medium-term and short-term goals. Its short-term goal in the next three years is to expand the production capacity of the high-performance all-steel ra- dial tires, improve the market share, and make the annual production capacity reach 4.50 million units on the basis of consolidating the existing market of the all-steel radial tires. To respond to the main risks in the process of operation and development, GS will continuously stick to the product differentiation competition measures. To be specific, such measures include consolidating the market share of the short-distance industrial and mining tire products to build the global tire industry benchmark; strengthening the research, development and production of the tubeless tire products to make a breakthrough in low rolling resistance technology and low noise technology of the products and enter market segments such as urban public transport and deluxe coach; and further improving the product specification of agricultural tires and forklift tires to develop new products with low abrasion, excellent traction and high grip and build a high-quality brand.
GS will continuously promote the product R&D. It will keep strengthening the construction of the technical R&D group, deepen the cooperation with domestic and overseas scientific research institutions and institutions of higher education, and improve the overall independent research and development ability to promote the company to become a principal part for the trans- formation of the technically innovative and scientific achievements so as to build a leading technical R&D center at home. With regard to product R&D, it will further strengthen the basic technical research, focus on the product R&D in all-steel radial tires, especially the high-performance all-steel truck radial tires, such as medium- and long-distance tubeless tires and short-distance industrial and mining tires, and make the R&D of products with high value-added and high technical content to boost the further improvement of the overall R&D level and technical strength of the company.
GS will increase the intensity of marketing. With regard to the replacement market, based on the brand construction, it will improve the channel and dealer team management and market operation level to expand the market sales share; with regard to the supporting market, it will further strengthen the cooperation with well-known car manufacturers, establish and complete the terminal after-sale service network, and increase the quantity of VIP customers; with regard to the export market, it will improve the sales income by product customization and services attracting the customers as well as product planning guiding the customers.
On the eve of the listing, GS held the listing thanksgiving charity activity. Zhou Yaoting, the chairman of the Board of Directors, and Zhou Haijiang, the president of HOdo Group, respectively donated RMB 5 Million Yuan and increased their investment in Wuxi Yaoting Charity Foundation by RMB 10 Million Yuan. So far, Zhou Yaoting and Zhou Haijiang (in father-son relationship) have accumulatively donated RMB 20 Million Yuan to Wuxi Yaoting Charity Foundation.
