LIU Pingping 4

What Happened

• LIU Pingping, Chief Legal Officer of Yum China (YUMC), converted/exercised 1,296 derivative shares and received a separate grant of 6,903 derivative shares. To cover tax withholding related to the exercise/conversion, 258 shares were disposed (withheld) at $57.95 each, totaling $14,951. The filing shows the exercise/conversion and the grant at a $0 per-share exercise price.

Key Details

• Transaction dates: grant on 2026-02-06; exercise/conversion and withholding on 2026-02-08; Form 4 filed 2026-02-10 (appears timely).
• Reported prices/values: 258 shares withheld at $57.95 for tax withholding = $14,951; exercised/converted and granted derivatives reported at $0 per share.
• Shares owned after transaction: not specified in the provided filing excerpt.
• Footnotes from filing:
  • F1: Conversion occurs on a one-for-one basis.
  • F2: Vesting occurs 1/3 per year beginning one year from 2/8/2024.
  • F3: This grant does not have an expiration date.
  • F4: Vesting occurs 1/3 per year beginning one year from 2/6/2026.
• Transaction codes: M = exercise/conversion of derivative; A = grant/award; F = tax withholding (shares disposed to cover taxes).

Context

• This looks like an exercise/conversion of derivative awards and the issuance of a new derivative award (likely RSUs or similar), not an open-market buy or sell for investment. The 258-share disposition was a withholding to meet tax obligations, a common administrative step that reduces the net shares issued rather than an independent cash sale.