Major shareholder increases stake alongside equity incentive plan, DPC DASH (01405) takes multiple measures to convey long-term confidence.

After delivering a solid interim financial report, DPC DASH (01405) has recently released a series of positive market signals once again: its core major shareholder has continuously increased its stake, while the company has simultaneously advanced a share incentive plan, further focusing on long-term value returns through arrangements such as options and share awards. At the industry level, since the State Administration for Market Regulation issued the "Ten Rules on Subsidy Behavior of Food Delivery Platforms (Draft for Comment)" in June, food delivery subsidies in the industry have basically receded, and competition in the catering industry is gradually returning to rationality. At this window when the sector is about to recover, DPC DASH's series of actions not only convey to the market the firm confidence of the company's shareholders and management in long-term value, but are also expected to accelerate the repair of the company's valuation. Interim results demonstrate operational resilience; core shareholder increases stake multiple times In the first half of 2026, DPC DASH's core operating data continued to improve. The company achieved revenue of RMB 3.134 billion, a year-on-year increase of 20.8%, maintaining double-digit growth for many consecutive years; in the first half of the year, it added a net 235 stores and entered 15 new cities. As of August 14, 96% of the full-year 2026 store opening target had been locked in, and economies of scale are gradually emerging. At the same time, the company's financial structure remains sound. In the first half of 2026, the company's net cash generated from operating activities increased from RMB 361 million in the same period of 2025 to RMB 505 million, and the debt-to-asset ratio fell to 7.9%, providing ample financial flexibility for business expansion. In the first half of 2026, Shenzhen New Land Tool Planning & Architectural Design's same-store transaction growth (SSTG) turned positive for the first time, indicating that Shenzhen New Land Tool Planning & Architectural Design stores are gradually entering a stage of normalized organic growth. According to company management, same-store sales growth (SSSG) is also expected to turn positive in 2027, and as average transaction price (ATP) gradually recovers, profit margins will also improve. Equity disclosure records show that core shareholders' stake increases did not stop alongside the improvement in performance. During the year, the company's core shareholder Good Taste Limited has repeatedly increased its stake in the secondary market. Its latest shareholding has exceeded 44.76 million shares, and its shareholding ratio has risen from 32.80% to 34.01% during the year. Related stake increase announcements continued to be updated after the release of the interim results. For a chain catering company still in an expansion cycle, the choice by core shareholders to add to their holdings with real money at this time, to some extent, translates the improvement in the company's fundamentals into a signal that the capital market can more easily understand. It is not a statement that remains at an earnings briefing, but actual actions that continue to appear in equity disclosure records. Focusing on long-term returns; share incentive plan continues to advance While conveying confidence at the shareholder level, the company is also actively advancing arrangements related to the share incentive plan trust, further consolidating a community of long-term interests. It is understood that DPC DASH recently issued an announcement that on August 31, 2026, the company granted 3.4196 million share options to 15 option grantees under the 2022 First Share Incentive Plan; on the same day, it granted 1.0171 million share awards to 58 award grantees under the 2022 Second Share Incentive Plan. It is worth noting that the 1.0171 million share awards will be used for subsequent vesting through existing shares purchased by the trustee in the market. Compared with the method of newly issuing shares, this does not increase the company's total share capital and will not dilute existing shareholders' shareholding ratios. In the design of the option portion, the exercise price of the 3.4196 million share options is HKD 35.64, higher than the closing price of HKD 33.30 on the grant date. This means that only if the company's share price rises further can exercise generate positive returns; at the same time, both the share options and share awards are subject to four-year graded vesting rather than one-time vesting. This not only helps retain core talent over the long term, but will also encourage management and employees to devote more energy to long-term development directions such as store expansion, operational efficiency improvement, and organizational capability building. Overall, this carefully considered share incentive plan arrangement aims to strengthen the long-term alignment of interests between employees and shareholders, while minimizing the impact on the shareholder structure and further focusing on long-term value creation. As food delivery subsidies recede and industry disruptions gradually fade, related catering stocks are ushering in an opportunity for value revaluation. With its solid operating fundamentals, combined with the resonance of internal and external confidence formed by shareholder stake increases and equity incentives, DPC DASH has ample momentum for valuation repair, and its long-term growth path is clearly visible.