Ligao Foods (SZ:300973) Zheng Quan Zhi Xing·2025-08-29 16:41Core Viewpoint - The legal opinion letter from Grandway Law Offices confirms the validity of the cancellation of certain restricted stocks under the 2022 incentive plan of Lihigh Food Co., Ltd, due to various reasons including employee departures and unmet performance criteria [1][5][6]. Summary by Sections 1. Background and Legal Framework - Grandway Law Offices was appointed as the legal advisor for Lihigh Food's 2022 restricted stock incentive plan and has issued several legal opinions regarding this matter [1][2]. 2. Specifics of the Cancellation - The cancellation of restricted stocks is due to 49 employees leaving the company, resulting in the cancellation of 929,600 shares that were granted but not vested [3]. - Additionally, 20 employees from the reserved grant also left, leading to the cancellation of 745,000 shares [3]. - The performance criteria for the second vesting period required a 40.05% increase in revenue from 2021 to 2023, with a threshold of 80% of the target to trigger vesting [4]. 3. Performance Assessment - The company achieved 88.69% of the performance target for the second vesting period, but 807,400 shares were still canceled due to participants opting out of vesting [4][5]. - For the third vesting period, the target was a 73.46% increase in revenue by 2024, with similar cancellation conditions [4]. 4. Total Cancellations and Compliance - A total of 3,289,400 shares were canceled due to employee departures, voluntary forfeitures, and unmet performance criteria [5]. - The company followed necessary procedures for the cancellation, including board approval and compliance with relevant regulations [5][6].