DL Holdings clarifies share award pool funding, no dilution expected

DL Holdings Group Limited clarified that the 2nd Share Award Pool, comprising 40 million shares under its 2025 Restricted Share Award Scheme, will be fulfilled through the purchase of existing shares from the market. This funding approach, utilizing the group's internal resources, aims to avoid any dilution effect for existing shareholders. The company addressed market reports that had incorrectly suggested new share issuance would be used to satisfy this award pool.

The 2nd Share Award Pool, combined with an initial 30 million share award pool, covers the group's share award pools for the next five years. Grants from these pools are contingent on the board's assessment of individual performance and contribution from directors, senior management, and employees. Only selected participants who exceed their performance targets will be eligible, subject to vesting conditions and periods determined by the board.

The maximum aggregate number of awarded shares under the scheme will not exceed 10% of the company's issued share capital as of the adoption date, excluding treasury shares. The board reiterated its commitment to purchasing existing shares for the 2nd Share Award Pool and advised shareholders and investors to rely solely on official company announcements for information.