Same Shares, Same Rights; United in Purpose, United in Aspiration; Co‑Creation, Co‑Sharing — The inaugural equity‑incentive signing ceremony of Yuegong Group’s Shandong subsidiary was successfully held.

Release Date:

2022-09-27 09:02

On September 21, 2022, the inaugural equity‑incentive signing ceremony of Shandong Yuegong Steel Components Co., Ltd., a subsidiary of Yuegong Group, was held with great solemnity in Pingyin, Jinan. Chen Bailiang, Chairman of the Group’s Board of Directors; Ren Qiliang, President; Luo Yinchang, Executive Vice President of the Group and Chairman of the Shandong Company; Ma Li, Director of the Office, and other senior executives traveled specially to attend the event.

Prior to the ceremony, President Ren Qiliang briefly reviewed the planning process for the Group’s equity‑incentive program. He noted: “It is widely acknowledged that resources are precious; from the company’s perspective, equity—like other resources—is relatively fixed and quite scarce. As outstanding core employees of Shandong Company, each of you represents a rare and valuable managerial talent. By aligning this scarce resource—equity—with equally scarce talent, we can achieve a synergistic effect where the whole exceeds the sum of its parts (1 + 1 > 2).” To ensure that the equity‑incentive program is implemented with proper procedures, fair pricing, and no loopholes or future liabilities, the Group undertook extensive preparatory work. From drafting the incentive plan to conducting asset valuation and pricing, we engaged independent third‑party firms and fully respected their objectivity and impartiality. There was no human interference in the valuation outcomes, which further underscores the Board of Directors’ far-sighted vision and open‑mindedness in pursuing the company’s long-term development. The determination of the equity discount rate not only safeguards the interests of existing shareholders but also effectively motivates new shareholders.

Subsequently, the equity‑incentive signing ceremony of Shandong Yuegong Steel Components Co., Ltd. commenced officially. In the presence of all attendees, Chen Kuanli, General Manager of the Shandong branch, along with Executive Deputy General Manager Wang Ming, Deputy General Managers Gao Yanbin and Qin Duqun, and Assistant to the General Manager Zhao Bin, successively signed the relevant equity‑incentive agreements on site with Chairman Chen Bailiang of the Group.

Following the signing ceremony, Chen Kuanli, General Manager of Shandong Company, delivered remarks on behalf of the employees of Shandong Company who were granted equity incentives in this round. He expressed his profound gratitude to the Group for recognizing the company’s management team, and stated that, through this equity‑based incentive program, he would assume a new role—embracing the mindset of a true owner of the enterprise—and devote himself even more diligently to his work, thereby repaying the shareholders’ trust and confidence.

Luo Yinchang, Executive Vice President of the Group and Chairman of the Shandong Company, extended his congratulations to the recipients of the incentive program and set forth the following work requirements for the Shandong Company’s management team: “Strengthen annual goal planning, firmly assign responsibilities, strive to catch up, and endeavor to successfully achieve all year‑end targets and tasks.”

At the meeting, Chairman Chen Bailiang of the Group’s Board of Directors delivered an important address. Chairman Chen stated: “Equity‑based incentives represent the most significant reform initiative currently underway at Yuegong Group. They not only bear on the company’s governance and management but will also effectively address issues related to its long-term development. The importance of this equity reform is self‑evident. To that end, the Group began planning and deliberating on this initiative two years ago, with the Shareholders’ Meeting authorizing Executive Vice President Luo Yinchang to take charge. In order to refine the proposal, the Group’s top leaders have diligently studied relevant theories and literature on equity reform, conducted in‑depth visits, and carried out extensive research and field investigations. The equity‑incentive plan now being implemented today features three key characteristics:”

First, it is the most fundamental reform measure for enterprises. While families are bound by blood ties, the key bond in a company is capital; equity‑based incentives leverage this crucial link to attract new talent and fresh management teams. By turning core employees—those who deliver results and contribute to the company’s sustained, stable growth—into shareholders, such measures enable them to share in the fruits of the company’s development.

Second, this represents the most significant incentive for the company. The equity‑based incentive plan recently introduced at the Shandong subsidiary—and the one soon to be launched at the Zhejiang subsidiary—features a relatively high allocation of equity and a robust level of motivation, entailing a substantial concession of interests on the part of the Group’s existing shareholders. This clearly underscores their openness and magnanimity. On behalf of all of us here who are being incentivized, I wish to express our deepest gratitude to the longstanding shareholders for their unwavering support of the Company’s long-term development.

Third, equity-based incentives are the most effective of all reward mechanisms. By aligning employees’ interests with the company’s growth through equity compensation, such programs enhance their sense of commitment and accountability. Equity‑based reform directly motivates individuals and represents the most efficient pathway to achieving shared goals between employees and the enterprise.

At the conclusion of the ceremony, Chairman Chen articulated two expectations and three requirements for the management team of Shandong Company: With the change in status upon becoming a shareholder, your position and perspective have also shifted. He urged the management team to adopt the mindset of true stewards of the enterprise, carefully considering both strategic development and practical approaches, and to address issues with a long-term, holistic vision. Furthermore, as shareholders, your powers and responsibilities have likewise evolved; he encouraged the new shareholders to thoroughly study the relevant provisions of the Company Law, the Articles of Association, and the Group’s Equity Incentive Implementation Plan, and to fully embrace their duties and commitments as shareholders.

Three Requirements for New Shareholders

First, unwavering and wholehearted loyalty to Yuegong. A key criterion for selecting equity‑incentive recipients is their level of loyalty. All of you have earned the full endorsement of the shareholders—both in terms of professional competence and steadfast loyalty—and we hope that, once you become shareholders, you will remain consistent and devote yourselves wholeheartedly to Yuegong.

Second, to devote oneself wholeheartedly and conscientiously to the imperial palace.

Third, we will forge ahead with a spirit of leaving tangible results. Moving forward, we will proceed steadily, one step at a time, delivering concrete achievements and making meaningful contributions, thereby continuously enhancing the performance of Shandong Yuegong and maintaining our role as a leading force among all the Group’s subsidiaries.

The signing of this equity‑incentive agreement marks a new beginning. By allocating equity to all employees, the Group is also entrusting them with responsibility and accountability. Through this equity‑based incentive program, we will join forces with those who share our vision, advancing together toward our established goals—sharing equal rights, united in purpose, and creating and reaping rewards as one.

Group leaders inspected the Shandong Company’s workshop and the Tuhai River Bridge project.

Shandong Company Held a Meeting to Review the First-Half 2022 Work and Outline Plans for the Second Half of the Year.

Group leaders inspected the Shandong Company’s workshop and the Tuhai River Bridge project.

Shandong Company Held a Meeting to Review the First-Half 2022 Work and Outline Plans for the Second Half of the Year.