According to the Measures for the Administration of Equity Incentives of Listed Companies (CSRC Order [20 16]No. 126), the specific analysis is as follows: Article 7, Item A, Item 1 stipulates that if the financial and accounting report of a listed company in the latest fiscal year is issued with a negative opinion or an audit report that cannot express an opinion, equity incentives shall not be implemented.
Item b of article 15 1 stipulates that when a listed company launches an equity incentive plan, it may reserve its rights and interests, and the reserved proportion shall not exceed 20% of the rights and interests to be granted in this equity incentive plan.
In item C, the equity incentive does not need to hire an independent financial consultant, but only when unprincipled pricing method is adopted, the higher one shall prevail.
Paragraph 2 (d) of Article 1 1 stipulates that a listed company may use its historical performance or relevant indicators of comparable companies in the same industry as a reference for its performance indicators. The performance indicators selected by the company can include comprehensive indicators such as return on net assets, earnings per share, dividend per share, etc., which can reflect shareholders' return and company value creation, and growth indicators such as net profit growth rate and main business income growth rate, which can reflect the company's profitability and market value. Based on the relevant indicators of comparable companies in the same industry, no less than 3 comparison companies are selected.
Item e of 17 stipulates that listed companies may implement equity incentive plans during the initiation and implementation of major issues such as issuing new shares, mergers and acquisitions, asset injection, convertible bonds and corporate bonds.