NaaS Technology Inc. Announces Amendment of Share Incentive Plan

Rhea-AI Summary

NaaS Technology Inc. (Nasdaq: NAAS) announces the amendment and restatement of its Amended and Restated New 2022 Share Incentive Plan, expanding the number of Class A ordinary shares available for grant of awards. The maximum total number of Class A ordinary shares becomes 490,563,333, increasing from 413,921,180 prior to the amendment, effective December 20, 2023.

Insights

Financial Analyst

The expansion of NaaS Technology Inc.'s share incentive plan is a strategic move that could have several implications on the company's financial structure and its attractiveness to potential and current employees. Increasing the number of shares available for awards may dilute existing shareholders' equity but can also be seen as a tool to attract, retain and motivate employees.

From a financial perspective, the increase to 490,563,333 Class A ordinary shares represents a significant rise in potential equity compensation. This could impact earnings per share (EPS) calculations in the future if these shares are granted and exercised, potentially leading to a dilutive effect on current shareholders. However, it could also signal confidence by the board in the company's future growth prospects, aligning employee interests with those of shareholders.

Long-term, the decision to automatically increase the pool annually by 1% could ensure a sustained mechanism for employee incentives, which may contribute to lower employee turnover and higher productivity. However, the annual increase must be carefully balanced against shareholder interests to avoid excessive dilution.

Human Resources Expert

Adjusting the share incentive plan can be a critical component of NaaS Technology Inc.'s human capital strategy. In the competitive EV charging service industry, such incentive plans are essential for attracting top talent. The amendment reflects an investment in human capital, which is particularly important in a high-tech industry where innovation and skilled personnel drive success.

The potential benefits include increased employee loyalty and motivation, as employees who are shareholders may be more invested in the company's success. However, it is important to consider the risk of over-reliance on stock-based compensation, which can be volatile and may not always align with individual performance metrics.

Industry Analyst

The amendment to NaaS Technology Inc.'s share incentive plan must be evaluated in the context of the broader electric vehicle (EV) charging industry. As the industry grows, with increasing demand for EV infrastructure, companies are seeking ways to maintain a competitive edge. This move could signal NaaS Technology's commitment to growth and scaling operations, which is critical in an industry that requires significant capital investment.

It is also essential to monitor how this strategy compares with industry norms. If NaaS's competitors are not offering similar incentives, this could provide NaaS with a competitive advantage in terms of talent acquisition and retention. Conversely, if this is a common practice, it may be a necessary step to remain competitive rather than a differentiator.

BEIJING, Dec. 21, 2023 /PRNewswire/ -- NaaS Technology Inc. (Nasdaq: NAAS) ("NaaS" or the "Company"), the first U.S. listed EV charging service company in China, announces that it has amended and restated its previously adopted Amended and Restated New 2022 Share Incentive Plan, to expand the number of Class A ordinary shares available for grant of awards. The amendment was approved by the board of directors of the Company and takes effects on December 20, 2023. Upon the amendment, the maximum total number of Class A ordinary shares of the Company underlying all awards, whether granted or available to be granted, under the Amended and Restated New 2022 Share Incentive Plan becomes 490,563,333 (from 413,921,180 immediately prior to the amendment) and will be increased on the first day of each fiscal year from January 1, 2024 by an amount equal to 1% of the total number of shares issued and outstanding on the last day of the immediately preceding fiscal year, unless otherwise determined by the board of directors of the Company. No other substantive amendment to the previous Amended and Restated New 2022 Share Incentive Plan was made.

About NaaS Technology Inc.

NaaS Technology Inc. is the first U.S. listed EV charging service company in China. The Company is a subsidiary of Newlinks Technology Limited, a leading energy digitalization group in China. The Company provides one-stop EV charging solutions to charging stations comprising online EV charging, offline EV charging and innovative and other solutions, supporting every stage of the station lifecycle. As of September 30, 2023, NaaS had connected 767,611 chargers covering 73,710 charging stations, representing 41.6% and 50.0% of China's public charging market share respectively.

Safe Harbor Statement

This press release contains statements of a forward-looking nature. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by terminology such as "will," "expects," "believes," "anticipates," "intends," "estimates" and similar statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about the Company and the industry. All information provided in this press release is as of the date hereof, and the Company undertakes no obligation to update any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that its expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results.

For investor and media inquiries, please contact:

Investor Relations
NaaS Technology Inc.
E-mail: ir@enaas.com
Media inquiries:
E-mail: pr@enaas.com

View original content:https://www.prnewswire.com/news-releases/naas-technology-inc-announces-amendment-of-share-incentive-plan-302020868.html

SOURCE NaaS Technology Inc.

FAQ

What is the company name and ticker symbol of the EV charging service company in China that made the announcement?

The company is NaaS Technology Inc. and its ticker symbol is Nasdaq: NAAS.

When does the amendment to the Amended and Restated New 2022 Share Incentive Plan take effect?

The amendment takes effect on December 20, 2023.

What is the maximum total number of Class A ordinary shares after the amendment?

The maximum total number of Class A ordinary shares becomes 490,563,333 after the amendment.

By how much did the total number of Class A ordinary shares increase from before the amendment?

The total number of Class A ordinary shares increased from 413,921,180 prior to the amendment.

How will the total number of shares issued and outstanding be increased in the future?

The total number of shares issued and outstanding will be increased on the first day of each fiscal year from January 1, 2024 by an amount equal to 1% of the total number of shares issued and outstanding on the last day of the immediately preceding fiscal year, unless otherwise determined by the board of directors of the Company.