Guangdong HEC launches 2025 employee stock ownership plan, projects Q1-Q3 profit surge

Guangdong HEC Technology Holding Co., Ltd. has announced its 2025 employee stock ownership plan, approved by shareholders. The plan aims to attract and retain talent while stimulating company growth. Shares for the plan will be sourced from the company's repurchased A-shares, totaling no more than 79,616,675 shares, representing 2.645% of the total share capital. The purchase price is set at CNY 6.75 per share, 50% of the average trading price on the day before the draft plan was announced.

The plan has a duration of 48 months, with two unlocking periods after 12 and 24 months, each for up to 50% of the shares. Unlocking is contingent on achieving company-level performance targets, including a 2025 operating income of CNY 13.5 bn and net profit of CNY 1 bn, followed by 2026 targets of CNY 15 bn operating income and CNY 1.5 bn net profit. Financing for the plan will come from employee self-raised funds and financing, with a debt-to-equity ratio not exceeding 1:1. The total cost of the plan is estimated to be CNY 123,405.85, to be amortized from 2025 to 2027.

Concurrently, Guangdong HEC expects a significant increase in its 2025 Q1-Q3 net profit, ranging from CNY 847m to CNY 937m, an increase of 171.08% to 199.88% year-on-year. This growth is attributed to improved market conditions for refrigerants, enhanced market advantages in electrode foil and capacitors, and optimized operational efficiency through internal reforms.