BaYi Steel to cancel restricted shares from 2021 incentive plan

Xinjiang Ba Yi Iron & Steel Company Limited (BaYi Steel) is set to repurchase and cancel a total of 5,793,600 restricted shares by September 23, 2025. This action stems from its 2021 A-share Restricted Stock Incentive Plan, affecting 206 individuals including former chairman Wu Bin and vice chairman Ke Shanliang. The total share capital will decrease from 1,538,691,470 shares to 1,532,897,870 shares following the cancellation.

The decision was approved by BaYi Steel’s 2024 annual general meeting. A significant portion, 4,812,360 shares, from 175 incentive recipients, are being repurchased at 3.13 yuan per share because the 2024 performance targets for the third unlocking period were not met. This includes metrics like weighted average return on net assets and total profit, excluding non-recurring gains and losses, as well as EVA assessment and growth rates.

Additionally, 909,160 shares from 28 incentive recipients who are no longer eligible due to job transfers or retirement will be repurchased at 3.28 yuan per share plus bank deposit interest. A further 72,080 shares from three employees who resigned will be repurchased at 3.13 yuan per share. BaYi Steel has confirmed the completion of all necessary legal procedures and no creditor objections have been raised during the 45-day public notice period.