Emergency suspension of equity incentive plan

Only eight days after the launch of a total of HK $1.646 billion Employee equity incentive scheme, Mengniu Dairy (02319.HK) announced that it would not continue to implement the scheme.　　Mengniu Dairy in the evening of July 17 announcement, the board announced that it intends not to continue to implement under the option to grant a total of 88.8 million shares can be subscribed to the share options proposal. On July 9, the company announced that it proposed to grant a total of 88.8 million share options to employees and directors of the company in accordance with the option plan adopted on June 28, 2005 to subscribe to the shares of the company, with a price of HK $18.54 per share. The scheme will be implemented in three years, with the first and second years being awarded 30% of the respective shares and the remaining 40% per cent for the third year. The plan is valid for six years.　　Among the 88.8 million shares, Mengniu Dairy Vice President Mr Yang won 6.6 million shares, Mengniu Dairy chief financial Officer Yautong received 1 million shares, and two executive directors Sun Yubin and Bai Ying respectively received 1.65 million shares and 3.21 million shares, totalling 12.46 million shares, about HK $231 million.　　Mengniu Dairy in a 17th announcement that the company issued the share announcement, the board received feedback from a number of relevant people, and therefore repeatedly discussed the grant of options, and the resolution passed not to continue to implement the recommendations.　　The company also said that as at the date of the announcement, the company had not issued a letter granting the right of option to any of the proposed contractors and therefore had not completed the proceedings for the grant of the proposal for the purchase of shares and had not formally granted any option.　　In addition, the Mengniu Dairy said that the Board would continue to consider granting other options under the stock option scheme in accordance with such conditions as it thinks fit. Mengniu Dairy stocks opened July 17 at HK $19.10, a decline of HK $0.06 to 0.31% in the previous session.