SANY's Commitment: The number of shares will not be reduced just because of the stock price drop less than 55.76 Yuan

The Shanghai and Shenzhen exchanges began a full circulation time on June 17, and SANY Heavy Industry, as the first full circulation stock in a real sense, held a news conference on that day to elevate its reduction threshold substantially.

He Zhenlin, vice president of SANY Group, first conveyed three sentences from Liang Wengen, BOD chairman of SANY Group: I am highly optimistic about China's economic situation and the construction machinery industry in which SANY belongs, and highly concerned about the capital market after earthquake reconstruction. This set the tone for SANY Group's non-reduction of stock holding, as the controlling shareholder of SANY Heavy Industry.

Zhao Xiangzhang, vice president of SANY Heavy Industry and secretary of the BOD chairman of SANY Heavy Industry, read a commitment letter on behalf of SANY Group, the controlling shareholder of SANY Heavy Industry: For SANY Heavy Industry's 518126188 shares held by the SANY Group which were released and listed onto the market on June 17, it is willing to be locked for another 2 years from June 19; If the second market price of the stock of SANY Heavy Industry's shares turns below twice the closing price on 16th, June (that is 55.76 Yuan per share). SANY Group promised that it would not reduce its numbers of the SANY Heavy Industry shares via the secondary share market.

In answering a reporter's question, the president Xiang Wenbo said that determined non-reduction price less than 55.76 Yuan did not indicate that SANY Heavy Industry has major projects in the recent future, and the price was only SANY Group's judgment based on performance, which showed the confidence of SANY Heavy Industry in the prospects.

Xiang also said that China's economic fundamentals had not changed, and SANY was very confident on China's economy and itself. He hoped that SANY Group can set an example to promote healthy development of stock market and to maintain the stability of capital market through controlling shareholder's commitment of locking the shares. Meanwhile, he also advocated listed companies commonly concern about China's capital market to maintain the stable and sound development of capital market together.