Fanhua announces completion of share option cash exercises

Fanhua announced that all share options previously granted to its key employees by the Board of Directors have recently been fully exercised through cash payment at an exercise price of $1.92 per American Depository Share, representing a premium of approximately 21.4% from the Company’s closing price on the last trading day prior to the cash exercise. This move not only highlights its key employees’ strong confidence in the Company’s future development but also demonstrates their commitment to growing with the company and sharing in its success. As previously disclosed, on July 2, 2024 the Board authorized the issuance of share options to purchase up to 138,000,000 ordinary shares, representing 6,900,000 ADSs of the Company, to 15 management team members of the Company’s major subsidiaries, to align their interests with the long-term success of the Company. Upon cash exercise of the share options, these key employees collectively held approximately 10.8% of the Company’s shares. The Company offered several of these key employees a loan at an interest rate of 3% per annum to facilitate the exercise of the share options. They also committed to serving the Company for no less than three years.