Kelun Biotech proposes 2025 equity incentive plan

Sichuan Kelun Pharmaceutical Co., Ltd. announced its controlling subsidiary, Kelun Biotech, plans to implement a 2025 equity incentive plan. This initiative seeks to establish a long-term incentive mechanism, attract and retain core talent, and align interests of shareholders, the company, and its personnel to drive business development. The plan involves granting restricted share units, sourced from newly issued H shares, existing H share treasury stock, or open market purchases of Kelun Biotech H shares.

The maximum number of H shares to be issued under the plan is 3,500,000, representing approximately 1.5% of Kelun Biotech’s total shares on the date of the shareholders’ meeting, excluding treasury stock. The purchase price for each share award is RMB1.00. The standard vesting period is four years, with 25% vesting annually from the grant date, though shorter periods may be determined in special circumstances.

The incentive plan's effectiveness is contingent upon approval by Kelun Biotech shareholders and the Hong Kong Stock Exchange Listing Committee. Sichuan Kelun Pharmaceutical anticipates that the plan will not significantly impact its financial position or operating results and will enhance Kelun Biotech's core competitiveness.