Shanghai Pharmaceuticals Holding Co., Ltd. cancels some unexercised stock options that expired in 2019 under the stock option incentive plan

Zhongfang Network Data
Shanghai Pharmaceutical Group Co., Ltd. recently completed the cancellation process for some of its unexercised options from the 2019 A-share stock option incentive plan. According to the resolution of the 29th meeting of the company’s eighth board of directors, the company decided to cancel 680k stock options that had been reserved and reached the third exercise period but were not exercised. The exercise period is from February 8, 2025, to February 7, 2026, with the exercise method being autonomous exercise. Incentive recipients did not exercise these options after the expiration.

This cancellation action is carried out in accordance with the “Administrative Measures for Equity Incentives of Listed Companies” and the company’s “2019 Stock Option Incentive Plan (Draft).” According to regulations, incentive recipients must exercise their options within the exercise period; if they do not exercise by the end of the period, the stock options should be promptly canceled by the company. The options involved in this cancellation were originally granted on December 15, 2020, to 28 incentive recipients, with adjustments made later due to personnel changes and other factors.

Tracing back the history of this incentive plan, Shanghai Pharmaceutical has repeatedly adjusted the list of incentive recipients and the number of granted options based on resignations, retirements, position adjustments, and other circumstances, and canceled options that did not meet the conditions. This cancellation is a routine operation in the management of the incentive plan, aimed at ensuring the effectiveness and compliance of the equity incentive program. After this cancellation, all options reserved for the third exercise period of the 2019 stock option incentive plan have been fully processed. The matter has been approved by the company’s board of directors, with independent directors and the supervisory board expressing their agreement, stating that the procedures comply with relevant laws, regulations, and the company’s incentive plan.