Company Announces 2024 Employee Stock Ownership Plan (Draft)
The total amount of capital to be raised in the employee's shareholding plan shall not exceed 35.0917 million yuan (1 yuan per share), and the size of the underlying shares involved shall not exceed 5.4917 million shares (1.23% of the total). The source of shares is the company's share repurchase, and the purchase price of the company's repurchase shares is 6.39 yuan/share.
The total number of people participating in the employee shareholding plan did not exceed 87 at the time of initial establishment (excluding reserved grantees), including no more than 8 directors (excluding independent directors), supervisors, and senior management personnel at the time of initial establishment, with a total subscription of no more than 5.4954 million; middle management and core business (technical) personnel did not exceed 79 million at the time of initial establishment, with a total subscription of no more than 23.1169 million shares; 6.4795 million shares were set up.
The performance assessment requirements for the first time in this employee stock ownership plan were:
First unlock period: 2024 revenue target value of 4.8 billion yuan, trigger value of 4.5 billion yuan; second unlock period: 2025 revenue target value of 5.28 billion yuan, trigger value 4.9 billion yuan; or 2024-2025 cumulative revenue target value of 10.08 billion yuan, trigger value 9.4 billion yuan; third unlock period: 2026 revenue target value of 5.81 billion yuan, trigger value 5.35 billion yuan; or the cumulative revenue target value for 2024-2026 is 15.89 billion yuan, and the trigger value is 14.75 billion yuan.
The initial transfer portion is estimated to be amortized at $24.8958 million, and $647.29/12.1989/4.7302/1.4937 million for 24-27 years, respectively.
This employee stock ownership plan can stimulate the enthusiasm, responsibility and sense of mission of the participating parties, promote the overall balance of interests and development of the company, employees, and shareholders. At the same time, it can effectively retain outstanding management talents and enhance the company's core competitiveness, thus achieving stable, healthy and long-term development of the company.
Steady performance, continuous increase in overseas share
In terms of the main business, the company digs deep into its inventory and expands its growth rate by focusing on customer service, strengthening product iterative upgrades, and accelerating the expansion of categories such as kitchen and bathroom faucets and water purification; in addition, it continues to improve the overseas supply chain capabilities of the Thai base, enhance the local service capabilities of North America, and gradually show results in the development of diversified business models such as overseas retail and cross-border e-commerce, and continues to expand overseas market share.
Maintain profit forecasts and maintain “buy” ratings
The company's management side continues to expand categories and channels, and the global layout of the supply chain ensures safety. This employee stock ownership plan is expected to further stimulate employees' enthusiasm and demonstrate confidence in the company's operations. We expect the company's net profit to be 0.503/0.577/0.668 billion yuan in 24-26 years, respectively, and the corresponding PE is 11/9/8X, respectively.
Risk warning: customer development falls short of expectations; overseas demand recovery falls short of expectations; risk of additional tariffs; industry competition increases risks, etc.