Zhejiang Longsheng employee stock plan lock-up period nears end

Zhejiang Longsheng Group announced that the lock-up period for its 2023 employee stock ownership plan will expire on November 7, 2025. The plan acquired 97,600,009 unrestricted shares of the company via non-trading transfer on May 7, 2024, and has been subject to an 18-month lock-up. These shares currently represent 3.00% of the company's total share capital.

The company's board of directors and the 2022 annual general meeting approved the plan on April 13 and May 11, 2023, respectively. Upon expiration, the employee stock ownership plan's management committee will assess market conditions to determine whether to sell the shares or extend the plan's duration. The plan's total duration is 60 months, commencing from the approval by the general meeting and its establishment, after which it will automatically terminate.

The plan can be extended if holders representing two-thirds or more of the shares attending a meeting agree and the company’s board of directors approves the extension, within two months before the plan's expiration. Any changes to the plan during its existence also require the approval of holders representing two-thirds or more of the shares attending a meeting, along with board approval. The plan may also terminate early if all assets are converted to monetary funds after the lock-up period.