On February 18, the first phase of Zhejiang Jingu Company Limited(002488) (002488. SZ) employee stock ownership plan was released. The company plans to take the 38647308 shares repurchased in the early stage with about 260 million yuan (accounting for about 3.86% of the current total share capital of the company) as the incentive target and launch the stock ownership plan for about 179 directors, supervisors, middle managers and business backbone personnel of the company.
According to the announcement, when the ESOP was established, the total capital did not exceed about 131 million yuan, and the price of the subject stock transferred by the holder was 3.39 yuan / share, which was not less than 50% of the average share repurchase price of the company (6.77 yuan / share).
Zhejiang Jingu Company Limited(002488) said that the pricing of the purchase price in this stock ownership plan takes into account the affordability and incentive effect of the company and employees on the basis of referring to the company’s operation and industry development, which is in line with the current actual situation of the company, is conducive to the promotion of this employee stock ownership plan, and is conducive to improving employees’ work enthusiasm, loyalty, sense of responsibility and belonging, Improving the stability of the staff is conducive to promoting the stable operation and long-term development of the company.
In addition, the shareholding plan clearly stipulates the locking period and sets the corresponding unlocking conditions. According to the draft plan, the underlying shares held under the employee stock ownership plan are unlocked in two batches, and the proportion that the employee stock ownership plan can be unlocked in each unlocking period is determined by taking the revenue growth rate as the assessment index.
The first unlocking period is 12 months after the transfer of shares. The company’s operating income and business income in 2022 will increase by more than 30% year-on-year, which can unlock 70% of the total number of underlying shares held by the employee stock ownership plan; The second unlocking period is 24 months after the transfer of shares. The company’s operating revenue in 2023 increased by more than 30% year-on-year, which can unlock 30% of the total number of underlying shares held by the employee stock ownership plan.
Zhejiang Jingu Company Limited(002488) believes that the setting of locking period and unlocking conditions has certain challenges and can achieve the effect of incentive. The completion of assessment objectives requires the joint participation and concerted efforts of key employees, which is conducive to creating greater value for shareholders and giving play to the role of incentive.
As one of the largest steel wheel manufacturing enterprises in China, Zhejiang Jingu Company Limited(002488) has continuously and steadily developed the main wheel industry in recent years. At the end of 2020, the avatar low-carbon wheel researched and developed by the company for nearly a decade was officially put into operation. Compared with the traditional steel wheel and aluminum wheel, avatar low-carbon wheel has multiple advantages of novel appearance, lightweight, high precision and high strength. The products produced with Avatar low-carbon technology can have the same weight as or even lighter than aluminum wheel hub, and the cost has great advantages compared with aluminum wheel.
Based on the above advantages, once avatar low-carbon wheels are listed, they will be rapidly promoted in the commercial vehicle market. In July 2021, Zhejiang Jingu Company Limited(002488) received the fixed-point notice from BAIC Foton, a light truck manufacturer. The light truck avatar wheels developed for them have been developed recently and will be put into road test. It is expected that they can be supplied in batches this year; With all aspects of the performance of avatar low-carbon wheels getting higher attention, its application in the field of passenger cars is also spreading. On January 3 this year, Zhejiang Jingu Company Limited(002488) received a project fixed-point notice from a large passenger car manufacturer in China. The company will develop and produce “Avatar car wheels” as the parts development and production supplier of the vehicle enterprise to supply the vehicle enterprise; In addition, the company’s lightweight products have entered the new energy passenger vehicle market and have become the standard wheel supplier of Wuling Hongguang miniev. At the same time, it has obtained the leiling supporting project of GAC Toyota new energy vehicle.
Driven by the highly vigorous market demand, the expansion of production of avatar low-carbon wheels is imminent. In 2021, Zhejiang Jingu Company Limited(002488) successively signed agreements with Yongning District of Nanning and Chaohu District of Hefei to invest in the construction of avatar low-carbon wheel production base, expand avatar low-carbon wheel production line through the investment and construction of two production bases, and plan to build more than 10 avatar low-carbon wheel production lines in the two places.
Zhejiang Jingu Company Limited(002488) stressed that the launch of the employee stock ownership plan is in view of the company’s future development plan and strategic objectives to ensure that the avatar low carbon wheel project is steadily promoted and put into operation on schedule. It can be predicted that the implementation of the employee stock ownership plan will deeply bind the personal development of employees with the development of the company, improve employees’ recognition of the company’s value and activate their internal vitality, which may become an important driving force for the smooth promotion of avatar low-carbon wheel project.
It is worth mentioning that the company has been continuously promoting the goal of promoting the expansion of production of avatar low-carbon wheels. On the same day when the employee stock ownership plan was launched, the transfer registration of shares between Mr. Sun Fengfeng, the actual controller of the company and Ms. sun Shuhong, who acted in concert, and Nanning industrial investment Xinxing No. 1 investment fund partnership (limited partnership) has been completed, This means that the investment, construction and production expansion of avatar low-carbon wheel in Nanning has taken substantial steps, echoing the endogenous driving force of the employee stock ownership plan.
