Bawei Lowered the Performance Appraisal Index
- Chaileedo Press
- Sep 21, 2022
- 2 min read
On September 20, Bawei announced that it will lower some of the performance appraisal index of the 2021 Restricted Stock Incentive Plan.
Public information shows that Guangdong Bawei Biotechnology Corporation was listed on the New Third Board on May 13, 2016, and is a cosmetic manufacturing enterprise integrating professional planning, research and development, testing, and production. It also has an independent third-party testing organization, whose clients are Unilever, Thanmelin, Lafang China, HBN, GIALEN , Renhe Jiangxin, etc.
CHAILEEDO analyzed through the financial data of Bawei in the past 5 years and found that it has achieved year-on-year growth in operating revenue. Especially in 2016, revenue increased by 86.41%, and net profit also surged significantly, hitting a highest record of 106.42%.
The announcement released by Barwei shows that the second release of the restriction period, it changed its original target of 50% growth in revenue and 40% growth in net profit in 2022 to 40% growth in revenue and 30% growth in annual net profit in 2022.
For the reasons of the downward adjustment, Bawei explained in the announcement that at the beginning of 2022, pandemics were outbreak frequently in China and aggregated pandemics occurred in some areas, and residents' travel and consumption activities were significantly reduced, which had a big impact on the consumer market. The shutdown of production and suspension of logistics in some parts of the country led to a major influence on the upstream and downstream of the cosmetics industry. Among them, the offline sales channels of cosmetics faced severe challenges and the normal operations of some company's customers were seriously affected.
Meanwhile, the company participated in China cosmetic exhibitions for business promotion as an important means of customer expansion. However, due to the impact of the pandemic prevention and control policy, they were unable to participate in the exhibition activities normally during the year. In addition, under the dual influence of the more complex and severe international environment and the effects of the pandemic in China, which led to abnormal fluctuations in the prices of cosmetic raw materials, as well as a series of uncertainties such as the increase in international logistics fees and longer international logistics transportation time, the company was scheduled to vigorously promote the foreign trade business of cosmetics during the year, which was now also affected as a result.
Bawei proclaimed that since the beginning of the year, the influence of the COVID-19 on the company, customers, and the entire cosmetics industry has completely exceeded expectations, the company's business environment in 2022 has been Announcement No.: 2022-074, which has changed significantly compared to 2021 when the stock incentive plan was formulated. The company-level performance appraisal index set in the original incentive plan for 2022 can no longer match the current market development trend and environment, if the company insists on implementing the original performance assessment targets, it will weaken the incentive of the plan.
After considering the above unfavorable factors, Bawei believes that it is more important to fully mobilize the motivation of the incentive recipients in this special period. Therefore, they decided to adjust the 2022 company-level performance appraisal index in the 2021 Restricted Stock Incentive Plan.
Comments