Mar. 21 at 10:19 AM
$CYD China Yuchai announces equity incentive plan
China Yuchai announced an equity incentive plan was approved by the shareholders of Yuchai and implemented by Guangxi SKY Cloud Technology, in respect of the equity interest in Sky Cloud. China Yuchai owns a 76.41% equity ownership in Yuchai, and Sky Cloud is a wholly owned subsidiary of Yuchai. The registered capital of Sky Cloud is RMB 5M. Pursuant to the equity plan, the registered capital of Sky Cloud will increase by an aggregate of RMB 1.25M which corresponds to a 20% interest of the enlarged registered capital of Sky Cloud.
The Sky Cloud Interest will be granted in two phases to the participants, who are selected employees, directors and senior officers of Sky Cloud. Phase One will amount to an aggregate amount of RMB 1,080,002 at a subscription price of RMB 1 per RMB 1 registered capital of Sky Cloud. The remaining Sky Cloud Interest will be granted in Phase Two by June 30, 2027, at a subscription price of 80% of the latest audited net assets value or RMB 1 per RMB 1 registered capital of Sky Cloud. The Sky Cloud Interest will be held by separate partnership vehicles established by the participants of the equity plan in different proportions.
The participants in turn hold direct interests in such partnership vehicles in accordance with the terms and conditions of the equity plan. With the implementation of the equity plan, Yuchai aims to motivate and incentivize employees who play a vital role in Sky Cloud's long-term growth, and for their continued contributions, dedication and loyalty to Yuchai.
Under the International Financial Reporting Standards, there is expected to be a charge of share-based expenses to the China Yuchai's profit and loss account in relation to the equity plan. Such charge will be determined based on, among other things, a valuation of Sky Cloud. The impact of the share-based expenses is considered immaterial to China Yuchai.
