On March 24, YSB (09885) announced on the Hong Kong Stock Exchange that it has conditionally granted a total of 26.041 million share options to its Chairman and CEO Zhang Buzhen, and 6.51 million share options to Executive Director and CFO Chen Fei. The exercise price is set at HK$4.608, which was the average closing price per share for the five trading days preceding the grant date. A key condition for the full vesting of these options is the company achieving a market capitalization of HK$30 billion. This initiative is designed to align the interests of core senior management with the company's long-term value, incentivizing leaders to steer the company toward leapfrog development and ultimately generate sustained, substantial returns for all shareholders.
According to the announcement, the unlocking of the options is linked to the company's total market value, requiring the achievement of specific milestones. The vesting conditions are structured in three tiers: when YSB's average market capitalization over 10 consecutive trading days reaches or exceeds HK$12 billion, HK$20 billion, and HK$30 billion for the first time, Zhang Buzhen will vest 4.11 million, 8.22 million, and 13.71 million options, respectively. Similarly, Chen Fei will vest 1.37 million, 2.06 million, and 3.08 million options at each corresponding tier. This marks the first time since its founding that YSB has granted equity incentives to CEO Zhang Buzhen. The plan deeply ties the personal compensation of core executives to the company's market performance.
Analysis suggests that setting such clear vesting conditions can strongly motivate management to formulate and execute more groundbreaking long-term strategies, focusing on enhancing the company's core competitiveness and intrinsic value. For the capital markets, this measure is expected to send a positive signal, helping to attract investors who prioritize long-term value and boosting market attention and valuation expectations for the company.
It is understood that granting share options to core executives is a common mechanism used by listed companies domestically and internationally to incentivize management and drive long-term value creation. For instance, XPeng previously granted restricted shares or options tied to market cap targets to its Chairman He Xiaopeng, Jinxin Fertility granted similar incentives to Executive Director Dong Yang, and Tesla designed a massive incentive package for Elon Musk closely linked to market cap and operational metrics. These examples all represent strategies for aligning interests through equity-based tools. YSB's incentive scheme draws on these established practices from mature markets.
Notably, the source of the granted options is the company's existing treasury shares, not newly issued shares. Future exercises will not increase the total number of shares outstanding, thereby avoiding dilution of existing shareholders' equity. YSB's board of directors stated that this measure will ensure the interests of core management are highly aligned with the company's long-term development and the overall interests of shareholders, further strengthening trust and motivating excellent management to contribute to the company's long-term growth, performance, and profits, thereby enhancing company value for the benefit of the company and all shareholders.
Latest data shows that in 2025, YSB achieved revenue of RMB 20.97 billion, a year-on-year increase of 17.1%; net profit of RMB 150 million, surging 409.7% year-on-year; and an adjusted net profit of RMB 237 million, up 51.2% year-on-year. Within this, the high-margin business, Factory Brand First, achieved a transaction scale of RMB 2.445 billion, a significant increase of 111.2% year-on-year, indicating a notable improvement in profitability.