fosun pharma announces share incentive scheme, shows promise for significant business growth
all theserestricted a shares will be issued to 28 participants, as recommended by fosunpharma. these participants include senior management and core technical and management personnel who make direct contribution to the overall results and continuous development of the company.
the issueprice wil lbe rmb6.08 per restricted a share.the restricted a shares granted to participants will be unlocked in three batches in the proportion of 33%, 33% and 34% of the total number of the restricted a shares granted upon the expiry of each lock-up period.
regarding the conditions for unlocking of these restricted shares, the company not only specifies the two financial indicators namely net profit and operating revenue, but takes r&d investment as akey to measurement. among these indicators, the net profit after extraordinary gains or loss attributable to shareholders of the company for the three consecutive years from 2013 to 2015 will not be less than rmb1 billion, rmb1.25 billion and rmb1.56 billion respectively.the operating revenue willnot be less than rmb9 billion, rmb10.5 billion and rmb12.5 billion respectively.the percentage of r&d expenditure on the pharmaceutical manufacturing segment to the total sales revenue from the pharmaceutical business will not be less than 4.8%, 4.9% and 5.0%.apart from striving for high growth of financial performance, the company continues to increase the investment in innovation and r&d, create shareholder value and share development of the company.
the company will repurchase and cancel the shares if the participants do not fulfill the conditions for unlocking the share incentive scheme.
mr. chen qiyu, chairman of fosun pharma, said, the management has been very confident in the development of the company.the adoption of restricted share incentive scheme accords with the company’s long-term benefit. this incentive scheme is designed and executed for management from subsidiaries.
mr. chen stated that, “we always actively explore, build up and improve the incentive and restraint mechanism. we have established various incentive and restraint mechanism for different level of management in headquarter and subsidiaries. in addition, we have further optimized corporate governance, fully incentivize the initiative of management and keyemployees, thereby effectively aligning the interestsof shareholders, the company interest and senior management. this approach will help all parties focus on the long-term development of the company.the group believes that under the leadership of the excellent management teams, fosun pharma will continue to maintain its outstanding business performance, endeavor to realize the long-term development strategy with a focus on enhancing product innovation and r&d capabilities, expanding pharmaceutical distribution and retail network, and to creating valuable investment rewards to shareholders.”