Huayou Cobalt to cancel restricted shares after missed targets

Zhejiang Huayou Cobalt Co., Ltd. announced its decision to repurchase and cancel a total of 3,174,980 restricted shares. This action stems from its 2023 and 2024 incentive plans, where some recipients no longer qualify and the 2023 plan's second restricted share release period's company-level performance targets were not met. The repurchase and cancellation are scheduled to be completed by October 31, 2025.

Of the total, 390,200 shares are being repurchased because certain incentive recipients no longer meet qualification criteria. This includes 10 individuals due to uncontrollable job transfers or company layoffs, two retirees, 59 voluntary resignations, and one termination for cause from the 2023 plan. Additionally, two individuals due to uncontrollable job transfers or company layoffs, and 15 voluntary resignations from the 2024 plan will have shares repurchased. An additional 2,784,780 restricted shares from the 2023 incentive plan's first grant are being repurchased due to the company's failure to achieve performance targets for the second restricted share release period.

Following the cancellation, the company's total share capital will decrease from 1,899,272,277 shares to 1,896,097,297 shares. This change will result in an increase in the combined shareholding percentage of Huayou Holding Group Co., Ltd. and its concerted party, Chen Xuehua, from 20.60% to 20.63%.