Beijing Biostar Pharmaceuticals Co., Ltd. (BIOSTAR PHARM-B) announced that its board on 6 May 2026 approved a new share option scheme compliant with Chapter 17 of Hong Kong’s Listing Rules and will seek shareholder approval at the 26 June 2026 AGM.
Purpose and Scope • The scheme is designed to align management incentives with long-term shareholder value, enhance talent retention and strengthen corporate culture. • Participants include directors, employees of the company and its subsidiaries, selected personnel from related entities, and external service providers who deliver strategic value.
Key Terms • Duration: Valid for 10 years from the adoption date. • Share Source: New issues, on-market repurchases, or existing treasury shares, all held by an independent trustee until vesting. • Scheme Mandate Limit: Options over up to 10% of issued H-shares (excluding treasury shares) as at the adoption date. – Service provider sublimit: 2% of the above mandate. – Individual limits: 1% for any employee and 0.2% for any service provider in any 12-month period. • Subscription Price: Not lower than the highest of (i) the grant-date closing price, (ii) the five-day average closing price, or (iii) par value. • Vesting: Minimum 12-month vesting with a standard three-year, three-tranche schedule; accelerated vesting possible on defined events (e.g., change of control). • Performance Hurdles: Exercise quantity tied to individual or team ratings—100% for Grade A, 50% for Grade B, none for lower grades. • Clawback: The board may cancel unvested options or recoup gains if misconduct, material misstatement, or reputational damage arises.
Governance and Restrictions • No option grants are permitted during blackout periods or when the company is in possession of inside information. • Options lapse automatically upon breaches such as criminal conviction, serious misconduct, or actions harming the group’s interests.
Board Mandate The AGM will also vote on authorising the board or an authorised person (chairman or designated general manager) to manage all scheme-related matters, including participant selection, option terms, trustee instructions, share issuance applications and amendments to the Articles of Association.
Next Steps Subject to shareholder approval, Beijing Biostar will apply to the Hong Kong Stock Exchange for listing and dealing permission for any shares to be issued or transferred upon option exercise. Investors are advised to exercise caution when dealing in the company’s shares pending AGM outcomes.
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