Cheng Yi Pharma(SH:603811) Zheng Quan Zhi Xing·2025-08-10 09:13Core Viewpoint - Zhejiang Chengyi Pharmaceutical Co., Ltd. is implementing an employee stock ownership plan (ESOP) to enhance employee motivation and align their interests with shareholders, while ensuring compliance with relevant laws and regulations [1][11]. Group 1: Company Qualifications - Chengyi Pharmaceutical is a legally established and compliant public company, having obtained its business license on May 7, 2013 [3]. - The company has received approval from the China Securities Regulatory Commission for its initial public offering, confirming its legal status [3]. Group 2: Legality and Compliance of the ESOP - The ESOP was approved by the company's board on July 13, 2025, and is designed to last until its expiration or can be extended upon approval [4][8]. - The plan allows for a maximum of 228 participants, including management and key personnel, without any financial assistance from the company [4][5]. - The shares for the ESOP will be sourced from the company's repurchased A-shares, with a total expenditure of approximately RMB 76.4 million at a price of RMB 7.25 per share [5][10]. Group 3: Legal Procedures and Disclosure - The company has conducted necessary legal procedures, including a staff representative meeting and board approvals, in accordance with regulatory requirements [11][12]. - The company has disclosed relevant information regarding the ESOP in compliance with the guidelines set by the China Securities Regulatory Commission [16]. Group 4: Management and Governance - The ESOP will be managed by a committee elected by the participants, ensuring independent operation from the company's controlling shareholders and management [14][15]. - The plan includes provisions for avoiding conflicts of interest and ensuring that participants retain their rights as shareholders [15]. Group 5: Future Steps - The ESOP is pending approval from the shareholders' meeting, which is the final step in the implementation process [13][16].