Youdao (DAO) Director Shum Heung Yeung Exercises Options, Sells ADSs

What Happened
Director Shum Heung Yeung exercised multiple stock options on Aug 31 and Sep 1, 2026, and immediately sold the resulting American Depositary Shares (ADSs). He exercised option awards totaling 17,186 ordinary shares on Aug 31 (from grants with $4.00 and $4.50 exercise prices) and 4,012 ordinary shares on Sep 1 (from a $4.50 exercise price), for a total of 21,198 ADSs issued and sold. The open-market sales produced weighted-average prices of $16.6229 (Aug 31 sales) and $16.1784 (Sep 1 sale), for aggregate proceeds of approximately $351,000. These transactions are coded M (option exercise) followed by S (sale), consistent with an exercise-and-sell (cashless-style) settlement.

Key Details

• Transaction dates: Aug 31, 2026 (17,186 ADSs) and Sep 1, 2026 (4,012 ADSs).
• Sales prices (weighted averages): $16.6229 (Aug 31 block) and $16.1784 (Sep 1). Estimated total proceeds ≈ $351K.
• Exercise prices / grants (footnotes): 4,000 options granted Feb 25, 2020, $4.00 ex.; 3,997 granted Jan 25, 2021, $4.50 ex.; 9,189 & 4,012 granted Jan 18, 2022, $4.50 ex. Expirations described in footnotes.
• Shares owned after transaction: not provided in the excerpt.
• Filing: Form 4 filed Sep 2, 2026 (dates shown). No late-filing flag provided in the supplied details.
• Codes explained: M = option exercise/derivative conversion; S = sale of securities. The Form shows the derivative exercise entries and the separate open-market sale entries (sales report the proceeds).

Context
This is a common executive/director pattern where options are exercised and the resulting shares are immediately sold to cover exercise costs and take proceeds (often called a cashless exercise or exercise-and-sell). Such sales are routine forms of liquidity for insiders and do not, by themselves, signal company outlook. The filing documents the grants, exercise prices and sale prices so retail investors can see the economics of the transaction.