Lifan Technology launches employee stock ownership plan, corrects past financial reports

Lifan Technology (Group) Co., Ltd. has initiated a 2025 Employee Stock Ownership Plan, following board approval and pending shareholder endorsement. The plan aims to foster long-term incentives for up to 300 employees, including 9 directors and senior executives, by distributing shares purchased from the secondary market. The total capital raised for the plan will not exceed 250 million yuan, with an estimated purchase of 20.128824 million shares, representing 0.4452% of the company's total capital based on the September 29, 2025 closing price of 12.42 yuan per share.

The plan's duration is 30 months from the completion of the last stock purchase, with a two-phase unlocking schedule: 50% after 12 months and the remaining 50% after 24 months. Performance targets include a 0.6 bn yuan net profit and 30% revenue growth for 2025, and a 1 bn yuan net profit and 40% revenue growth for 2026, using 2024 as the base year. Participants’ individual performance will also factor into the unlocking ratio.

Additionally, Lifan Technology has corrected its 2022 and 2023 annual reports due to statistical errors. The restatement clarifies that the top five customers' sales in 2023 amounted to 278,325.60 million yuan, representing 41.12% of the total sales, with related party sales accounting for 224,933.48 million yuan, or 33.23%. For 2022, top five customer sales were 414,563.80 million yuan, representing 47.90% of total sales, and related party sales were 342,249.27 million yuan, or 39.55%.