Longxin General's third employee stock ownership plan has completed its position building, purchasing a total of 26.66M shares.

Source: Shanghai Securities News · China Securities Journal

Shanghai Securities News · China Securities Journal reported that Longxin General announced on the evening of March 25 that, as of that day, the company’s third employee shareholding plan had purchased a cumulative 26.6565 million shares of the company’s stock through centralized bidding on the secondary market, accounting for 1.30% of the company’s total share capital, with a total transaction amount of 400 million yuan and an average transaction price of 15.01 yuan per share.

It is understood that on the evening of December 24, 2025, the company launched the above employee shareholding plan (draft). The participants are limited to no more than 500 directors, senior executives, and other core personnel who play an important role in the company’s overall value and medium- to long-term development. The plan’s duration is 48 months. The funding sources include the special incentive fund extracted by the company, employees’ lawful compensation, and other methods permitted by laws and regulations. The plan size does not exceed 400 million yuan (including).

The company stated that this employee shareholding plan is intended to further stimulate the initiative and creativity of the core management team and key personnel, attract and retain outstanding talent, and lay a solid talent foundation for the company’s long-term sustainable development. By deeply linking participants’ interests with the company’s operating performance, profitability, and long-term value, this plan is committed to fully mobilizing employees’ innovative vitality, enhancing team cohesion and the company’s overall competitiveness, thereby driving continuous improvement in operating performance, promoting the joint growth of company value and shareholders’ interests, and ultimately achieving the strategic goal of the company’s long-term high-quality development.

According to the draft, the performance assessment years for this employee shareholding plan are the three accounting years of 2026, 2027, and 2028. At the company level, three performance assessment indicators are set: “Independent Brand Revenue,” “Operating Revenue,” and “Net Profit Attributable to Parent.” Among them, operating revenue is expected to increase by no less than 10%, 20%, and 30%, respectively, compared with 2025; net profit attributable to parent is expected to increase by no less than 10%, 20%, and 30%, respectively, compared with 2025; independent brand revenue is expected to increase by no less than 15%, 30%, and 50%, respectively, compared with 2025.

It is understood that this is also the company’s second time, after eight years, to launch an important long-term incentive measure.

Longxin General also reminded that the company has completed the purchase of the corresponding shares. The purchased shares will be locked in accordance with the provisions of the third employee shareholding plan (draft). Starting from the date of purchase, the shares will be unlocked in three phases after 12 months, 24 months, and 36 months, respectively, with the proportions of each phase being 40%, 30%, and 30%, respectively. (Wang Yi)

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