Lu Xueling 4

What Happened
Lu Xueling, Controller and Principal Accounting Officer of Yum China (YUMC), converted/exercised 1,404 derivative shares on Feb 8, 2026 and received a separate grant of 3,883 derivative shares on Feb 6, 2026. To cover tax obligations from the exercise/conversion, 560 shares were surrendered/withheld and disposed at $57.95 per share, generating $32,452. The exercise/conversion entries are reported as derivative transactions (code M) and the withholding is reported as a tax payment (code F).

Key Details

• Transaction dates: Grant recorded 2026-02-06; exercise/conversion and withholding recorded 2026-02-08. Filing date: 2026-02-10.
• Shares and prices:
  • 3,883-share award (derivative) granted on 2026-02-06 (code A), $0.00 price reported (derivative grant).
  • 1,404 shares exercised/converted on 2026-02-08 (code M), $0.00 price reported for conversion.
  • 560 shares withheld/disposed on 2026-02-08 to cover taxes at $57.95 each = $32,452 (code F).
• Shares owned after the transactions: Not disclosed in the Form 4 filing.
• Relevant footnotes:
  • F1: Conversion occurs on a one-for-one basis.
  • F2: The 3,883-share grant vests 1/3 per year starting one year from 2/6/2026.
  • F3: That grant does not have an expiration date.
  • F4: The previously issued awards that were converted vest 1/3 per year beginning one year from 2/8/2024.
• Timeliness: Filing covers Feb 6 and Feb 8 transactions and was submitted on Feb 10, 2026. Form 4s are generally due within two business days of the transaction — this filing was submitted a few days after the earliest transaction.

Context
This was primarily a grant and an exercise/conversion of derivative awards, with a routine tax-withholding disposition (560 shares) to satisfy tax obligations — effectively a cashless-style withholding rather than an open-market sale. Grants and exercises by executives are common for compensation and do not by themselves indicate a change in personal market view.