Hengrui Medicine to propose employee stock ownership plan

Jiangsu Hengrui Medicine Co. will convene its first extraordinary general meeting in September 2025 to consider a new A-share employee stock ownership plan for 2025. The plan proposes that employees acquire up to 14 million shares from the company's repurchased A-shares, representing approximately 0.21% of the total share capital. The acquisition price is set at CNY 30.95 per share.

The ownership plan, structured to vest in three tranches over 12, 24, and 36 months, will unlock 40%, 30%, and 30% of shares, respectively. Unlocking is contingent on achieving specific performance targets for 2025, 2025-2026, and 2025-2027, including innovation drug sales revenue, new molecular entity IND approvals, and new drug application (NDA) submissions.

The company will also seek shareholder approval to authorize the board of directors to manage all aspects of the plan, including its implementation, changes, termination, and participation in future financing. Additionally, the meeting will address the appointment of Ernst & Young Hong Kong as the overseas auditor for 2025.