Sinotrans cuts capital, scraps stock options as performance targets missed

Sinotrans announced on December 5, 2025, that it would reduce its registered capital by CNY 98,446,648, from CNY 7,272,197,875 to CNY 7,173,751,227. This reduction is a result of the cancellation of 92,564,070 A-shares repurchased between 2024 and 2025, and an additional 5,882,578 A-shares repurchased in 2022. Consequently, the company's total share capital will decrease, leading to revisions in its Articles of Association.

Separately, Sinotrans also announced that the performance conditions for the third vesting period of its first stock option incentive plan were not met. The company’s net asset return to parent company and net profit compound growth rate for 2024 fell below the stipulated targets of 10.75% and 11.5% respectively.

As a result, 21,513,086 stock options granted for the third vesting period will not vest and will be cancelled. Additionally, 504,200 unexercised stock options from the second vesting period will also be cancelled, totaling 22,017,286 stock options. The company's first stock option incentive plan will conclude upon this cancellation.