Aluminum Corporation of China Limited Completes Third Unlocking Period for 2021 Restricted Share Incentive Scheme

Aluminum Corporation of China Limited (“CHALCO” or “the Company”) has announced a significant milestone regarding its 2021 Restricted Share Incentive Scheme, which could have implications for its share price and investor sentiment.

Key Points and Details of the Announcement

• Unlocking Conditions Satisfied: The Company’s Board and Remuneration Committee have confirmed that all unlocking conditions for the third unlocking period of the restricted shares under the first grant of the 2021 Incentive Scheme have been satisfied.
• Unlocking Period and Shares Involved:
  • The third unlocking period allows participants to unlock up to 30% of their granted restricted shares.
  • The unlocking period commences after a 48-month lock-up from the registration date (13 June 2022), expiring on 12 June 2026. Unlocking starts the first trading day after this period and ends at the 60-month mark.
  • Up to 29,974,734 restricted shares will be unlocked for 862 participants, accounting for approximately 0.17% of the Company’s total share capital.
• Performance Appraisal and Eligibility:
  • Corporate performance requirements were significantly exceeded:
    • Compound growth rate of net profit (2020 base to 2024) was 134.88% (target: ≥60%).
    • EOE (EBITDA/average net assets) for 2024 was 58.81% (target: ≥29%).
    • 2024 EVA reached RMB 17.09 billion (target: RMB 2.35 billion).
  • Most participants received a top-level performance appraisal, entitling them to full unlocking for this period.
  • Participants who retired or transferred due to uncontrollable reasons were partially eligible; those who resigned voluntarily or passed away had their shares repurchased and cancelled.
• Regulatory and Compliance Assurances:
  • All necessary legal and regulatory approvals have been obtained.
  • The unlocking process complies with the Company Law, Securities Law, and all relevant regulatory guidelines.
• Board and Legal Validation: Both the Remuneration Committee and external legal counsel have validated the unlocking, confirming the process is fair, legal, and does not harm the interests of minority shareholders.
• Executives and Key Personnel Involved:
  • Key management, including Executive Director and General Manager Zhang Ruizhong, Deputy General Managers Xu Feng and Lu Dong, and 859 other mid-level managers and core technical/business staff are among the beneficiaries.

Shareholder Considerations and Price Sensitivity

• Potential Share Price Impact: The unlocking of nearly 30 million shares (0.17% of share capital) may increase the Company’s free float and provide liquidity to current and former employees. While the percentage is relatively modest, any significant share sales by participants could introduce selling pressure.
• Signal of Strong Performance: The Company’s outperformance on all key financial metrics for 2024, as required by the incentive scheme, signals robust operational health and effective management. This could positively impact investor sentiment.
• Governance and Compliance: The Company’s strict adherence to performance and eligibility criteria, and transparent handling of resignations and other employment changes, may reassure shareholders about the integrity of its incentive systems.

Summary Table of Key Executives and Shares Unlocked

Conclusion

This unlocking event reinforces CHALCO’s commitment to aligning management and employee incentives with long-term shareholder value creation. Strong performance and transparent governance practices are evident. However, investors should stay alert for any ensuing share sales by newly unlocked participants, which could create short-term price volatility.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research or consult with a professional adviser before making investment decisions.

《中國鋁業股份有限公司2021年限制性股份激勵計劃第三解鎖期公告》

【重點及詳情】

• 解鎖條件已全部達成：董事會及薪酬委員會確認，2021年限制性股份激勵計劃首期第三解鎖期的所有解鎖條件已經滿足。
• 本次解鎖規模及時間：
  • 第三解鎖期允許參與者解鎖已授予股份的30%。
  • 解鎖期於登記日（2022年6月13日）起48個月鎖定期屆滿後首個交易日（2026年6月13日）開始，至60個月屆滿日結束。
  • 將有29,974,734股限制性股份解鎖，涉及862名參與者，約佔公司總股本0.17%。
• 業績考核及合資格情況：
  • 公司2024年主要業績指標大幅超標：
    • 2020-2024年歸母扣非淨利潤複合增長率134.88%（目標不低於60%）。
    • 2024年EOE（EBITDA/平均淨資產）為58.81%（目標不低於29%）。
    • 2024年EVA實現170.9億元（目標23.5億元）。
  • 大部分參與者獲最高等級績效評價，本期可全額解鎖。
  • 因退休或調崗等不可控原因離職可部分解鎖；主動離職或逝世的股份已由公司回購註銷。
• 規管及合規保障：
  • 所有法定及監管審批均已辦妥，程序合法合規。
  • 薪酬委員會及外部律師意見均確認解鎖流程公平、合法，未損害中小股東權益。
• 核心人員參與：
  • 包括執行董事兼總經理張瑞忠、副總經理徐峰、盧東，以及859名中層管理人員及核心技術/業務骨幹。

【對股東及股價的潛在影響】

• 解鎖近3,000萬股（佔比0.17%）將增加流通股本，理論上員工減持有機會帶來短期拋壓。
• 公司業績超預期，反映經營能力強，有助提升市場信心，利好長線投資者情緒。
• 激勵機制執行嚴謹，員工與公司利益高度綁定，顯示公司管治規範，有助吸引長線資本。

主要高管及解鎖股份詳情：

總結：
本次解鎖反映公司激勵制度與經營業績高度掛鈎，經營成果顯著，或提升長線投資者信心。建議股東留意解鎖股份流通後，個別參與者減持可能帶來的短期波動。

免責聲明： 本文章僅供參考，並不構成任何投資建議，投資者須自行決定及承擔風險。

View CHALCO Historical chart here