Laobaixing Pharmacy cancels restricted shares after employee departures, missed targets

Laobaixing Pharmacy Chain JSC announced the repurchase and cancellation of 1,205,377 restricted shares from its 2022 equity incentive plan. This decision, approved by the board, primarily stems from 32 incentive plan participants having left the company, alongside a failure to meet company-level performance targets for the third restricted period of the initial grant and the second restricted period of the reserved grant. The total repurchase amount is 14,889,399.25 yuan (including interest), funded by the company's own capital.

The shares are scheduled for cancellation on October 23, 2025. This action will reduce the company's total outstanding shares by 0.16% from 760,095,613 shares to 758,890,236 shares, with the number of restricted shares in circulation dropping to zero.

This marks a significant adjustment to the company's equity structure and reflects ongoing oversight of its incentive programs to align with performance and retention goals. Hunan Qiyuan Law Firm confirmed that the repurchase and cancellation procedures adhere to relevant regulations and the company's incentive plan.