本次股权激励计划限制性股票的授予价格为10.96元/股，员工持股计划购买回购股票价格与其一致，按照公司今日收盘价21.88元计算，折价约50%，标的股票的来源为公司2021年从二级市场回购的普通股。公司曾在2021年2月通过董事会决议，使用自有资金回购公司股份1908.63万股，用于股权激励计划或员工持股计划，此次为公司前次所回购股份的第二轮股权激励及员工持股计划。Henan Lingrui Pharmaceutical has released a new round of restricted stock-based incentive plan and employee stock ownership plan, with a slightly lower target for lifting restrictions compared to the previous incentive plan, but still maintaining a double-digit non-recurring performance assessment requirement.
Financial Association News November 29th (Reporter Zhang Liangde) The leading Chinese medicine plaster analgesic pharmaceutical company Henan Lingrui Pharmaceutical (600285.SH) has announced a new round of stock-based incentive plan and employee stock ownership plan. Compared to the 2021 incentive plan, this round's incentive plan lowers the performance assessment targets for lifting restrictions, but still requires achieving double-digit annual growth in non-recurring net income for this year and the next two years for the granted restricted stocks to be unlocked.
Henan Lingrui Pharmaceutical announced after-hours the '2024 Restricted Stock-based Incentive Plan (Draft)' and '2024 Employee Stock Ownership Plan (Draft)'. This equity incentive plan grants 1.25 million restricted stocks to 9 executives, including the deputy general manager and some directors, accounting for approximately 0.22% of the total share capital of the company; up to 189 employees are involved in the employee stock ownership plan, with the targeted stock size not exceeding 1.9563 million shares, representing about 0.34% of the total share capital.
The grant price of the restricted stocks in this equity incentive plan is 10.96 yuan per share, and the price for employees to purchase back the stocks in the employee stock ownership plan is consistent with it. Based on the company's closing price today at 21.88 yuan, the discount is about 50%, and the source of the targeted stocks is the ordinary shares repurchased by the company from the secondary market in 2021. The company had previously repurchased 19.0863 million shares of its own stock in February 2021 through a board of directors resolution, for use in equity incentive plans or employee stock ownership plans, making this the second round of equity incentive and employee stock ownership plans following the previous repurchase.
Compared to the company's 2021 stock-based incentive plan, this round by Henan Lingrui Pharmaceutical has slightly lowered the performance assessment targets for lifting restrictions.
According to the company's announcement, this round of equity incentive plan sets two lock-up periods, each unlocking 50%. The company-level performance assessment indicator for lifting restrictions is based on the net income after deducting non-recurring gains and losses in 2023 for the first unlock period, with a requirement of no less than 32% net income growth by 2025; for the second unlock period, based on the net income after deducting non-recurring gains and losses in 2023, a no less than 45% net income growth by 2026.
Henan Lingrui Pharmaceutical's non-recurring net income in 2023 was 0.534 billion yuan. Based on the performance assessment requirements of this incentive plan, the non-recurring net income of the company should not be less than 0.705 billion yuan in 2025, and not less than 0.774 billion yuan in 2026. The non-recurring net income growth rate of the company needs to be around 15% in 2024 and 2025, and a further 10% growth in 2026 based on the 2025 non-recurring net income.
Financial Association News reporters noticed that the unlocking requirement of the company's 2021 incentive plan was an annual net income growth rate of no less than 20%. Compared to that, this round of incentive plan by Henan Lingrui Pharmaceutical has slightly lowered the performance growth requirements, but still requires the annual growth rate of non-recurring net income to remain in double digits.
Coincidentally, another traditional Chinese medicine plaster production company, Tibet Cheezheng Tibetan Medicine (002287.SZ), also announced an employee stock ownership plan in October this year. Cheezheng Tibetan Medicine has set up three assessment phases, without profit assessment targets, but requires an annual revenue growth rate target of 15%, while setting a trigger value of 13.50%.
Both major traditional Chinese medicine plaster listed companies have set high growth targets for incentive schemes and employee stock ownership plans, indicating the development potential of the traditional Chinese medicine plaster analgesic market. The 2024 Western Pacific China OTC market high potential category incremental outlook forecast conference proposed that bone health is a high potential category in the OTC market. The overall market size of bone analgesics in 2023 was 27.37 billion yuan, with a compound annual growth rate of 7.6% over five years. The market size of topical analgesic products in the bone analgesics market is approximately 21.99 billion yuan, with a five-year compound growth rate of 8.8%.
