Great Wall Motor unveils new ESOP to boost cohesion, long-term development

Great Wall Motor Company Limited is set to adopt its 2025 Employee Stock Ownership Plan (ESOP), Management Measures for the 2025 ESOP, Long-Term Incentive Fund Management Measures, and Remuneration Management System. These proposals will be considered and approved at an Extraordinary General Meeting (EGM) on December 23, 2025. The ESOP aims to improve corporate governance, promote sustainable development, and enhance long-term incentives by gathering business partners aligned with the company's values.

The ESOP will involve up to 50 participants, with directors and senior management holding 15% and other core staff holding 85%. The total funds for the ESOP will not exceed RMB80m, sourced from the company's incentive fund, employee salaries, and other permitted sources. The company plans to purchase 418,643 A Shares for the ESOP at RMB21.83 per Share, with a lock-up period of 12 months and unlocking in two 50% tranches at 12 and 24 months, subject to company and individual performance targets from 2026 to 2027.

The 2026 performance targets for unlocking include a sales volume of at least 1.8m units and a net profit of at least RMB10bn. The company acknowledged that these targets are adjusted from previous schemes due to significant changes in the Chinese automotive market, including a reduction in new energy vehicle purchase tax incentives from 2026. The new targets are described as better aligned with current performance growth, enhanced in scientificity and reasonableness, and challenging.