Zhifei Biological employee stock plan nears expiration, future under review

Chongqing Zhifei Biological Products Co., Ltd. announced that its "Common Prosperity Employee Stock Ownership Plan (2022)" is set to expire on March 10, 2026, marking the end of its 48-month duration. The company will now assess market conditions and solicit participant feedback to decide whether to extend the plan or sell the shares held within. The plan was approved on February 14, 2022, following board and shareholder meetings.

The employee stock ownership plan acquired 29.1 million shares through secondary market transactions, representing approximately 1.82% of the total share capital at the time of purchase. Following a 2022 equity distribution, the number of shares held by the plan increased to 43.65 million, now accounting for 1.82% of the total share capital after the distribution. As of the announcement date, the plan has not yet sold any shares.

The plan's lock-up period was 12 months, running from March 18, 2022, to March 17, 2023. Decisions regarding the plan's extension or early termination, if assets are fully converted to cash, require approval from the management committee or a two-thirds majority of participants at a holder meeting, followed by board review.