China Railway to Cancel Restricted Shares Due to Unmet Performance

China Railway Group (CREC) announced the repurchase and cancellation of 54,786,990 restricted shares from 678 incentive recipients. This decision stems from the company's failure to meet the third vesting period's performance targets for its 2021 Restricted Stock Incentive Plan. The repurchased shares are expected to be officially cancelled on November 24, 2025.

The unmet performance conditions for 2024 included a weighted average return on net assets (after deducting non-recurring gains and losses) of 8.28%, falling short of the 11.50% target. Furthermore, the compound growth rate of net profit attributable to shareholders (after deducting non-recurring gains and losses) from 2020 to 2024 was 2.74%, significantly below the 12% target. The company also failed to achieve its State-owned Assets Supervision and Administration Commission economic value added (EAV) target of RMB 333.36 billion.

Following the cancellation, China Railway Group's total share capital will decrease from 24,741,008,919 shares to 24,686,221,929 shares. The number of restricted shares will be reduced to 3,973,988, representing 0.02% of the total share capital, while unrestricted shares will remain at 24,682,247,941, constituting 99.98%.