Yuyue Medical ESOP misses targets, shares to be reclaimed

Jiangsu Yuyue Medical Equipment & Supply announced that the second lock-up period for the initial acquisition portion and the first lock-up period for the reserved acquisition portion of its 2023 employee stock ownership plan (ESOP) have expired or are set to expire in November 2025. The company-level performance targets for both periods, specifically a 32% net profit growth rate for 2024 based on a 2021-2022 average of 1.539 billion yuan, were not achieved.

The ESOP's initial acquisition portion, comprising 5,757,225 shares acquired at 17.30 yuan per share, saw its second lock-up period expire on November 16, 2025. The reserved acquisition portion, totaling 472,942 shares acquired at 16.10 yuan per share, will see its first lock-up period expire on November 19, 2025. As performance goals were not met, the ESOP management committee will reclaim the corresponding equity from participants.

According to the ESOP plan, reclaimed equity will be sold, and the proceeds will be used to refund participants' original contributions and interest. Any remaining surplus will be returned to the company. The first lock-up period for the initial acquisition portion, which ended on November 16, 2024, unlocked 34% of the shares. The ESOP’s total duration is 60 months, beginning from the final transfer of shares to the plan's account.