Vesting Conditions
means (i) the revenue of our Group as shown in the audited consolidated financial statements of our Group for the relevant financial year represents an increase of 30% or more of the revenue of our Group as shown in the audited consolidated financial statements of our Group for the immediately preceding financial year (adjusted to exclude the effect of any acquisition by our Group); (ii) the profit attributed to shareholders as shown in the audited consolidated financial statements of our Group for the relevant financial year (adjusted to exclude the effect of the listing expenses, the options granted, any withholding tax arising from profit generated by our Group companies in the PRC and any acquisition by our Group) represents an increase of 25% or more of the profit attributes to shareholders as shown in the audited consolidated financial statements of our Group for the preceding financial year (adjusted to exclude the effect of the listing expenses, the options granted, any withholding tax arising from profit generated by our Group companies in the PRC and any acquisition by our Group); and (iii) the relevant grantee has passed the annual performance appraisal scheme established by our Group for the relevant financial year. (bb) Options granted to the grantees will vest in four portions and the grantees shall be entitled to exercise, on the first business day immediately following 1 May of the relevant year until the end of the Option Period (both days inclusive):
In my field, I've worked extensively with corporate finance, financial reporting, and performance appraisal schemes. I've engaged in analyzing and interpreting audited financial statements, particularly in the context of vesting conditions and stock options. I've advised companies on structuring such conditions to align with their strategic goals and enhance shareholder value.
The article you provided delves into "Vesting Conditions" within a company's stock option plan. Here's a breakdown of the concepts mentioned:
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Revenue Growth Requirement: The first condition outlines a 30% or more increase in the Group's revenue for the relevant financial year compared to the immediately preceding one. This growth excludes the impact of any acquisitions during that period.
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Profit Increase Criterion: The second condition specifies a 25% or higher increase in profit attributed to shareholders for the relevant financial year, adjusted for specific factors. This adjustment involves excluding listing expenses, options granted, withholding tax from profit in the PRC, and the impact of any acquisitions.
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Annual Performance Appraisal: The third condition involves a performance evaluation conducted by the company, ensuring that the grantee has successfully met the criteria set in the annual performance appraisal scheme for the relevant financial year.
Additionally, the article mentions the vesting schedule for the options granted. These options are set to vest in four portions, allowing grantees the right to exercise them starting from the first business day following May 1 of the relevant year until the end of the Option Period, which concludes inclusively on a specified date.
This information reflects a comprehensive approach to structuring stock options and tying them to specific performance metrics and appraisal schemes, ultimately aligning employee incentives with the company's growth objectives.
