Guoquan Food unveils 2026 H-share incentive plan, revises IPO fund use and declares interim dividend

Bulletin Express
Yesterday

Guoquan Food (Shanghai) Co., Ltd. has called an extraordinary general meeting (EGM) for 10 September 2026 to seek shareholder approval on several capital-allocation resolutions.

Key proposals

1. 2026 H-share Equity Incentive Scheme • Mandate limit: up to 5% of the company’s issued share capital (excluding treasury and uncancelled repurchased shares) on the adoption date, equal to roughly 126.91 million H shares. • Share source: up to 100 million treasury shares already held (total treasury: 176.10 million) and/or on-market purchases funded by internal resources. • Validity: 10 years. Vesting period generally ≥12 months; shorter periods allowed in limited cases (e.g., make-whole grants, death or disability). • Eligible participants: executive directors (excluding INEDs), senior management and employees of the company and its subsidiaries. • Purchase prices tiered by rank, ranging from RMB1.00 per share (vice-president level) to RMB0.40 per share (supervisor/specialist level). • Performance hurdle: core operating profit targets from RMB600.00 million in 2026 to RMB1.20 billion in 2030, with subsequent annual targets to be set by the board. • Claw-back triggers include misconduct, violation of non-compete, material misstatement of accounts and other serious breaches. Shareholders will also vote to authorise the board or a scheme committee to administer grants, adjust terms and handle related compliance.

2. Interim cash dividend • Net profit for 1H 2026: RMB213.20 million. • Proposed dividend: RMB0.0503 per share (tax inclusive); aggregate payout about RMB127.70 million, payable on 28 October 2026 to shareholders on record as of 21 September 2026. • Treasury and to-be-cancelled shares are excluded from entitlement.

3. Guarantees for subsidiary financing • Company may provide joint-and-several guarantees up to RMB300.00 million to support subsidiary credit facilities. Authorisation runs to the 2026 AGM.

4. Change in use of IPO proceeds • Net IPO proceeds raised in 2023: HK$448.70 million; unutilised balance at 30 June 2026: HK$293.30 million. • Reallocation: HK$173.80 million shifted from (i) self-operated store expansion (-HK$139.50 million) and (ii) R&D centres (-HK$34.30 million) to factory construction/acquisitions (+HK$173.80 million). • Full utilisation deadline extended by one year to 31 December 2028 to match project progress.

Meeting logistics • H-share register closes 7–10 September 2026. • Proxy forms must reach Computershare Hong Kong Investor Services by 14:00 on 9 September 2026.

If approved, the initiatives aim to streamline capital deployment, strengthen production capacity and align employee incentives with long-term earnings growth.

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