XCMG machinery unlocks first tranche of 2023 stock incentives

XCMG Construction Machinery's board of directors has approved the first unlocking period for its 2023 Restricted Stock Incentive Plan (pre-allotted portion). This allows 196 eligible employees to unlock 2,465,051 shares, representing 0.02% of the company's total share capital. The unlock comes as the pre-allotted restricted shares' first lock-up period, commencing December 28, 2023, is set to expire on December 27, 2025.

The company's compensation and assessment committee, supported by legal counsel, confirmed that all unlocking conditions, including company-level performance targets and individual performance assessments, have been met. Specifically, the 2023 net asset yield exceeded 9.86%, net profit surpassed CNY 5.326 bn, and the cash dividend ratio was 100%, all meeting or exceeding plan requirements.

The plan has undergone several adjustments since its initial approval in 2023, including modifications to the list of beneficiaries, the number of granted shares, and share repurchase prices due to dividend distributions and employee departures. The company intends to proceed with the unlocking and, where applicable, repurchase and cancel shares from ineligible participants.