Lianchuang Electronics: Plans to use 33 million stock options and restricted stock incentive plans

On the evening of February 14, Lianchuang Electronics disclosed its 2022 stock option and restricted stock incentive plan, which intends to grant a total of 33 million shares of equity to the incentive targets. The target stocks involved are RMB A-share common stocks, accounting for approximately 3.10% of the company's total share capital on the date the draft incentive plan was announced. Among them, 28.35 million shares were granted for the first time and 4.65 million shares were reserved.

According to the announcement, the scope of incentive targets of this incentive plan includes senior management personnel, core management personnel and core technical/business personnel who are serving in the company (including subsidiaries, hereinafter the same) when the company announces this incentive plan.

The announcement shows that this incentive plan intends to grant 22,000,000 stock options to the incentive targets, and the target stocks involved are RMB A-share common stocks, accounting for approximately 2.07% of the company's total share capital of 1,062,825,458 shares on the date of the announcement of the draft incentive plan. Among them, 18,900,000 stock options are granted for the first time, accounting for approximately 1.78% of the company's total share capital of 1,062,825,458 shares on the date of the announcement of the draft incentive plan, and approximately 85.91% of the total number of stock options to be granted this time; 3,100,000 stock options are reserved, accounting for approximately 0.29% of the company's total share capital of 1,062,825,458 shares on the date of the announcement of the draft incentive plan, and approximately 14.09% of the total number of stock options to be granted this time.

Lianchuang Electronics said that this incentive plan will assess the company's performance indicators on an annual basis during the fiscal years 2022-2024, with the achievement of the company's performance assessment targets as one of the exercise conditions for the incentive targets in the current year. The performance assessment targets for the granted stock options are shown in the following table:

It is understood that the company is a high-tech enterprise specializing in the research and development, production and sales of key optical and optoelectronic products such as optical lenses, camera modules and touch display integration for smart phones, tablets, sports cameras, smart driving, smart homes, VR/AR, etc., and has initiated the establishment of an integrated circuit industry fund to invest in the integrated circuit industry. It is a key electronic information enterprise in Jiangxi Province and a key enterprise in Nanchang City. The company adheres to the corporate spirit of "joint win-win, innovative development" and the business philosophy of "quality-based, integrity-based", and strives to build the company into a world-class, long-lasting optical and optoelectronic R&D and manufacturing enterprise with a scale of over 10 billion and international competitiveness.

In order to further stimulate the enthusiasm of the company's management and core backbones and continue to establish and improve the company's medium- and long-term incentive and constraint mechanism, the company plans to implement a new equity incentive plan. After reasonable prediction and taking into account the incentive effect of this incentive plan, this incentive plan selects the main business income of the listed company, the optical vehicle operating income and the net profit attributable to the shareholders of the listed company as the company-level performance evaluation indicators, which can reflect the growth of the company's main business and directly reflect the growth of the company's automotive optical industry.

In addition, the company's performance indicators set this time are formulated by the company based on comprehensive consideration of factors such as the current situation, future strategic planning, and industry development. They are highly challenging, with both pressure and motivation. They not only help to enhance the company's competitiveness, but also help to mobilize the enthusiasm and creativity of the company's core backbone employees, ensure the realization of the company's future development strategy and business goals, and thus bring more returns to shareholders.

In addition to the company-level performance appraisal, the company has also set up a strict performance appraisal system for individuals, which can make a relatively accurate and comprehensive evaluation of the work performance of the incentive targets. The company will determine whether the incentive targets meet the conditions for exercising their rights and the specific number of rights to be exercised based on the performance appraisal results of the incentive targets in the previous year.