Huadong Medicine to unlock 1.275m restricted shares from incentive plan

Huadong Medicine announced that 1,275,120 restricted shares from its 2022 Restricted Stock Incentive Plan will become eligible for listing and circulation on December 10, 2025. This represents 0.07% of the company's current total share capital. A total of 77 eligible individuals have met the conditions for this third release period, with a release ratio of 40% for the initial grant.

The release conditions were deemed achieved by the board, including company-level performance targets. Specifically, the company's 2024 net profit after deducting non-recurring gains and losses increased by 53.89% from the 2021 base, exceeding the 50% target. Individual performance assessments also played a role, with 74 eligible individuals achieving "excellent" ratings (100% release ratio) and 3 achieving "qualified" ratings (70% release ratio).

In total, 113 individuals were part of the initial grant. However, 20 employees forfeited their incentive eligibility due to resignation, and 16 employees had "unqualified" performance in 2024, resulting in 0% release ratio for them. An additional 284,200 restricted shares from various categories of ineligible or underperforming individuals are slated for repurchasing and cancellation by the company.