Suzhou HYC employee stock plan fails to unlock due to missed performance target

Suzhou HYC Technology's 2024 employee stock ownership plan, approved in July and August 2024, will see its 12-month lock-up period expire on September 13, 2025. The plan involved 888,000 company shares transferred to the employee stock ownership plan's securities account on September 12, 2024.

However, the company's 2024 annual performance target was not met. The plan stipulated that the 2024 operating income growth rate should not be less than 15% based on 2023 operating income. As a result, the shares held under the plan will not be unlocked for the employees.

The employee stock ownership plan management committee will retrieve the shares, sell them, and return the initial capital contributions plus bank deposit interest to the participants. Any remaining proceeds will go to the company. The plan's total duration is not to exceed 36 months, starting from the last stock transfer date.