qia qia foods releases stock option incentive plan, experts say the purpose is to boost business confidence
2024-09-19
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china business news (reporter zhou zidi)on september 19, qia qia food, a leading company in the snack food industry, released its 2024 stock option incentive plan (hereinafter referred to as this incentive plan). the company plans to grant 4.78 million stock options to the incentive targets.
industry insiders analyzed that the expected returns of the incentive targets of qia qia food’s current incentive plan depend on the company’s performance development and secondary market conditions, which are consistent with the interests of shareholders. the launch of the plan demonstrates the company’s confidence in future development.
the stock price reached the daily limit on the day the stock option incentive plan was announced
the announcement shows that qia qia food’s incentive plan intends to grant 4.78 million stock options to the incentive targets, accounting for 0.94% of the company’s total share capital of 507.0023 million shares at the time of the announcement of this incentive plan.
among them, the company granted 4.18 million stock options for the first time, accounting for 87.45% of the total amount granted under this incentive plan, and approximately 0.82% of the company's total share capital at the time of the announcement of the draft incentive plan; 600,000 stock options were reserved, accounting for 12.55% of the total amount granted under this incentive plan, and approximately 0.12% of the company's total share capital at the time of the announcement of the draft incentive plan.
in terms of pricing, the exercise price (including reservations) of the stock options first granted under this incentive plan is rmb 19.97 per share.
the total number of incentive targets for the first time under this incentive plan is 29, including directors, senior managers, core managers, and core technical (business) personnel who are employed by the company (including branches and holding subsidiaries) when the company announces this incentive plan. the validity period of this incentive plan is from the date of the first grant of stock options to the date when all stock options granted to the incentive targets are exercised or cancelled, and the maximum period shall not exceed 60 months.
in the capital market, according to data from tonghuashun, at 10:21 am on september 19, the share price of qia qia food hit the daily limit, at 27.3 yuan per share, an increase of 9.99%, with a total market value of 13.841 billion yuan.
the shares come from repurchase and private placement, showing the company's confidence in future development
where do the shares for this incentive plan come from and what does this reflect?
the announcement shows that the target stocks involved in this incentive plan come from the company's a-share common stock issued to the incentive targets and/or the company's a-share common stock repurchased from the secondary market.
a reporter from china business news learned from previous announcements that as early as june this year, qia qia food issued an announcement stating that it planned to repurchase shares of no less than 50 million yuan and no more than 100 million yuan for later equity incentive plans or employee stock ownership plans.
in this regard, gao jianfeng, founding partner of shanghai bogai consulting, told china business news that the operation of partially repurchasing shares for equity incentives is neutral to favorable for small and medium-sized investors. he said that the incentive plan of qia qia food is aimed at the company's management and core employees, which shows that the company recognizes the current stock price and also shows the company's confidence in future development.
in terms of pricing, the exercise price of 19.97 yuan per share is lower than the company's current share price of 27.3 yuan per share. how should this be understood?
dong qiudi (pseudonym), a securities analyst who focuses on the food industry, told china business news that in most companies' equity incentive plans, the exercise price is lower than the stock price, which can achieve the effect of motivating employees. he believes that qia qia food's incentive plan shows the company's confidence in future development and stabilizes market confidence.
shen meng, director of xiangsong capital, told china business news that the target of this incentive plan of qia qia food is the group related to the company's business and performance, with the purpose of boosting business confidence. although the exercise price stipulated by the company is lower than the price of the company's secondary market, the restriction on the exercise period may also send a positive signal to the market.
the exercise conditions are linked to performance to protect the interests of shareholders to a great extent
it is worth mentioning that the exercise conditions of qia qia food’s incentive plan are closely related to the company’s performance, which may protect investors’ interests to a large extent and achieve the incentive effect.
regarding the exercise conditions of stock options, the announcement shows that the assessment years corresponding to the exercise of the stock options first granted under this incentive plan are the three accounting years from 2024 to 2026. in each accounting year corresponding to the exercise period, performance appraisals will be conducted on an annual basis and the exercise of rights will be carried out in parallel, with the achievement of performance appraisal targets as the exercise conditions for the incentive objects.
for example, the announcement shows that the first exercise period is based on the 2024 performance as the assessment standard, and the trigger value is based on the 2023 performance. the company's revenue growth rate in 2024 will not be less than 10.8%, and the growth rate of net profit attributable to shareholders after deducting non-recurring items will not be less than 21.6%; the second exercise period is based on the 2025 performance as the assessment standard, and the trigger value is based on the 2023 performance. the company's revenue growth rate in 2025 will not be less than 25.9%, and the growth rate of net profit attributable to shareholders after deducting non-recurring items will not be less than 44.1%.
gao jianfeng believes that this incentive plan is relatively neutral and objective, judging from the correlation between this plan and qia qia food's performance. the exercise conditions stipulated in the plan are somewhat challenging, but not unattainable, and have a high probability of being realized. on the one hand, it protects the interests of shareholders, and on the other hand, it can also play a good role in motivating employees. in the future, qia qia food's operations are expected to be relatively stable, and its performance growth will be more promising.
zhu danpeng, vice president of the guangdong food safety promotion association and food industry analyst, told china business news that qia qia food's incentive plan is more targeted. the current competition in the fast-moving consumer goods industry is very fierce, and how to retain talent and better tap the creativity of employees is the focus of the company's future development. the launch of qia qia food's incentive plan is a good match for the current industry requirements and the company's goal of achieving a revenue of 10 billion yuan in the future.
