KHPG(SZ:002773) Zheng Quan Zhi Xing·2025-08-27 16:41Core Viewpoint - The legal opinion letter discusses the cancellation of certain stock options and the achievement of conditions for the third exercise period of the reserved stock options under Chengdu Kanghong Pharmaceutical Group Co., Ltd.'s 2021 stock option incentive plan [1][5][15]. Group 1: Approval and Authorization of Stock Option Matters - The company held a board meeting on June 18, 2021, approving the stock option incentive plan and related matters [5][8]. - The company’s supervisory board also approved the plan during its meeting on the same day [8][10]. - The first grant of stock options was publicly announced from July 3 to July 12, 2021, with no objections received [8][10]. Group 2: Cancellation of Stock Options - A total of 0.06 million stock options will be canceled for one incentive object due to unmet performance criteria for the 2024 fiscal year [12][15]. - The company will also cancel 52.37 million stock options for 30 incentive objects that were not exercised by the end of the respective exercise periods [12][15]. - The cancellation of stock options complies with the relevant regulations of the management measures and the incentive plan draft [12][15]. Group 3: Achievement of Conditions for the Third Exercise Period - The waiting period for the third exercise period of the reserved stock options has expired, allowing for the exercise of options [13][15]. - The performance criteria for the exercise of options require a net profit growth rate of at least 10% for 2024 compared to the audited net profit of 2023 [14][15]. - The company confirmed that the conditions for the third exercise period have been met, with one incentive object fully meeting performance criteria [15]. Group 4: Specific Arrangements for the Exercise of Options - The stock options available for exercise total 35,400 shares, representing 0.0038% of the company's total share capital [15][16]. - The exercise price for the reserved stock options is set at 13.84 yuan per share [15][16]. - The exercise period will commence upon completion of the necessary procedures and will be subject to trading day restrictions [16].