Li Auto-W (02015.HK): Grants 35 Million Share Options Tied to HK$1 Trillion Market Cap Target

NewTimesSpace (newtimespace.com) reports: Li Auto Inc. ("Li Auto") (02015.HK) announced on June 16, 2026, that on June 15, 2026, the company (i) granted a total of 35,000,000 share options under its 2020 Plan to two directors (Mr. Li Tie and Mr. Ma Donghui) and one senior management member (Mr. Xie Yan), and (ii) granted a total of 5,557,200 restricted share units ("RSUs") under its 2019 Plan to one director (Mr. Ma Donghui) and 99 employees of the company.

According to the announcement, the share options granted represent 17,500,000 American Depositary Shares ("ADSs"), equivalent to 35,000,000 Class A ordinary shares, representing approximately 1.62% of the company's total issued shares as of the date of the announcement (on a one-share-one-vote basis). The exercise price of the share options is USD 14.380 per ADS, being the higher of: (i) the closing price per ADS on Nasdaq on the grant date (June 15, 2026, U.S. Eastern Time) (USD 14.380); and (ii) the average closing price per ADS on Nasdaq for the five consecutive Nasdaq trading days immediately preceding the grant date (USD 14.082). The market price of the Class A ordinary shares on the grant date was HKD 56.850 per share.

The announcement stated that the company is adjusting the long-term incentive arrangements for core management members from fixed time-based vesting awards to an incentive structure that better aligns the interests of core management members with shareholder interests and the long-term performance of the group. The share option grant is part of this adjustment: the share options carry an exercise price matching the current market price and are subject to performance targets linked to the company's market capitalization. Core management members will only benefit when the company's share price rises and the relevant market capitalization performance targets are achieved, thereby delivering tangible shareholder value enhancement. The number of RSUs granted to Mr. Ma Donghui has been correspondingly reduced to reflect this adjustment.

Under the terms of the share option grant, the corresponding proportion of shares will vest upon the first achievement of the following market capitalization tiers: 20% when market cap first reaches HKD 200 billion; 20% at HKD 400 billion; 20% at HKD 600 billion; 20% at HKD 800 billion; and 20% at HKD 1 trillion. The company's market capitalization will be calculated based on (i) the average closing price of the shares on the Hong Kong Stock Exchange for 30 consecutive trading days, multiplied by (ii) the total number of issued shares (excluding treasury shares, if any). If a higher-tier target is achieved for the first time without prior achievement of a lower-tier target, the shares corresponding to both the lower and higher tiers will vest in one lump sum. The exercise period of the share options is ten years from the grant date (i.e., June 15, 2036).

Regarding the RSU grant, Mr. Ma Donghui was granted 1,500,000 RSUs, and the other 99 employees were granted a total of 4,057,200 RSUs. The purchase price per RSU is USD 0.1. The total vesting period for Mr. Ma Donghui's RSUs is approximately 54 months, with the first batch of 300,000 RSUs vesting within 12 months from the grant date. The total vesting period for the 99 employees' RSUs ranges from approximately 36 months to 66 months, with a total of 34,200 RSUs granted to employees scheduled to vest within 12 months from the grant date as the first batch under an overall arrangement with a vesting period exceeding 12 months. The RSUs are subject to the achievement of certain performance targets related to performance appraisal results.

The announcement disclosed that both the share option grant and the RSU grant include clawback mechanisms. Following the share option grant, the company may grant further awards totaling 82,590,606 Class A ordinary shares under the 2020 Plan. Following the RSU grant, the company may grant further awards totaling 29,407,870 Class A ordinary shares under the 2019 Plan.

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