The parent company of Chubang soy sauce, China National New Hi-Tech Industrial (Group) Co., Ltd. (China National New Hi-Tech), announced on June 23 that it plans to terminate the implementation of the 2024 restricted stock incentive plan due to factors such as its actual operating situation. This incentive plan involves over one hundred million Chinese yuan.
On June 23, China National New Hi-Tech released the announcement of the “Second Extraordinary Shareholders’ Meeting in 2026.” The announcement stated: “Taking into account the industry in which China National New Hi-Tech operates, its actual operating situation, recent market environment, and future development strategic plans, after careful study, the company plans to terminate the implementation of the 2024 restricted stock incentive plan and repurchase and cancel the restricted stocks.”
The announcement explained the reasons for canceling the incentive plan, stating that “four individuals among the incentive targets voluntarily resigned for personal reasons.” Additionally, “the company did not achieve the company-level performance targets in both the first and second assessment periods, and set higher performance evaluation requirements for the third assessment period based on the second assessment period. The company expects that it will not be able to achieve the remaining company-level performance targets set by this incentive plan.”
According to a report by “21st Century Business Review” on June 23, in early June 2024, the company granted 12.23422 million restricted stocks to 255 employees at a price of 13.79 Chinese yuan per share, with a total value of approximately 169 million yuan. The plan also set performance evaluation goals from 2024 to 2026 for the release of restricted stocks.
The targets stipulated a baseline of 2023, with a revenue growth rate of not less than 12% in 2024, cumulative growth of 32% in 2025, and cumulative growth of 95% by 2026. However, in 2024, the company’s revenue growth rate was only 1.62%, far below the 12% target. In 2025, its revenue decreased year-on-year by 23.9% to 4.2 billion Chinese yuan. The main business of seasoning products performed poorly, with soy sauce, chicken essence, and edible oil all experiencing a comprehensive decline. Considering that the company has not met the targets for two consecutive assessment periods, it is certain that this year’s target will not be achieved.
In response, “21st Century Business Review” cited a analysis by a senior consumer analyst stating that the “strategic loss in the restaurant channel” has exacerbated the revenue decline.
It is reported that China National New Hi-Tech’s customer base mainly consists of household consumers. The recent years of control struggles have caused the company to miss out on the rise of demand in the chain restaurant sector, leading to a relatively weak channel layout.
Public information shows that China National New Hi-Tech Industrial (Group) Co., Ltd. was established in 1993, headquartered in Zhongshan City, Guangdong Province, and is a state-owned enterprise. The company went public on the Shanghai Stock Exchange in 1995. Its main business covers seasoning production and sales, as well as urban development, with seasoning products as its core business. Its subsidiary, Guangdong Delicacy Fresh Seasoning Food Co., Ltd., owns the Chubang and Delicacy Fresh brands, offering products in 10 major categories and over 100 varieties like soy sauce and chicken powder.
As of the closing of A-shares on June 23, China National New Hi-Tech’s stock was trading at 17.32 Chinese yuan per share, a decrease of 0.63%, with a total market value of 13.411 billion Chinese yuan.