Fang Rui 4

What Happened

• Fang Rui, CEO of Yuanbao Inc. (YB), reported option exercise/conversion transactions on 2026-05-26. The Form 4 shows 50,000 derivative securities acquired (no price listed) and 300,000 derivative securities disposed at $0.00. The filing amounts are reported as derivative security transactions (code M = exercise/conversion of options). No cash value is reported for the acquired ADSs in the filing.

Key Details

• Transaction date: 2026-05-26; Form 4 filed: 2026-05-28.
• Reported items: 50,000 derivative securities acquired (price: N/A); 300,000 derivative securities disposed at $0.00.
• Shares owned after transaction: not specified in the filing.
• Relevant footnotes:
  • F1: The options were fully vested and exercisable as of Aug 1, 2024.
  • F2: Each ADS is convertible into six (6) Class A ordinary shares of Yuanbao.
  • F3: The filing states these are ADSs acquired upon exercise of options.
• Filing timeliness: Filed two days after the reported trade date (within the common two-business-day Form 4 window).

Context

• Code M transactions mean options were exercised or converted. Footnote F2 indicates these securities are ADSs (each ADS = 6 ordinary shares), so the reported counts relate to ADSs rather than individual Class A shares.
• The 300,000 disposed at $0.00 often reflects surrender or withholding of option shares to cover exercise costs or tax obligations; the filing itself does not detail cash payment or tax withholding specifics.
• This is an insider option exercise—neither a straightforward open-market buy nor a public sale—and should be interpreted as a change in derivative holdings rather than a direct cash purchase or sale signal.