Sanyuan Foods to repurchase, cancel restricted shares after performance targets missed

Beijing Sanyuan Foods Co., Ltd. will repurchase and cancel 7,086,978 restricted shares from its 2022 restricted stock incentive plan, representing about 0.47% of its current total share capital. The repurchase follows the non-achievement of performance targets for the second vesting period in 2024 and the departure of 23 incentive recipients due to retirement, job changes, or resignation. The company's total share capital will decrease from 1,509,176,043 shares to 1,502,089,065 shares.

The repurchase price for shares linked to performance targets will be the lower of the adjusted grant price (2.941 yuan per share) and the market price. Shares from retired or transferred employees will be repurchased at the adjusted grant price plus bank term deposit interest, while shares from resigned employees will be repurchased at the lower of the adjusted grant price and market price. The company will use its own funds for the repurchase.

The company's board of directors and board of supervisors approved the resolution on August 19, 2025. The repurchase and cancellation are expected to be completed by November 7, 2025, after which the company will proceed with necessary regulatory changes. Dentons Beijing Law Offices has confirmed the actions comply with relevant regulations.