Lu Xueling 4

What Happened
Lu Xueling, Controller and Principal Accounting Officer of Yum China (YUMC), converted derivative awards into 2,197 common shares on February 9, 2026 (933 + 1,264). To satisfy tax withholding, 990 of those shares were surrendered/disposed at $57.50 each, generating $56,925 in consideration. Net shares received after the withholding were 1,207 shares. The transactions reflect conversion/vesting activity rather than an open-market buy or sell.

Key Details

• Transaction date: 2026-02-09; Form 4 filed 2026-02-11 (timely filing).
• Conversion (code M): 933 and 1,264 derivative shares converted (total 2,197).
• Tax/payment withholding (code F): 990 shares withheld/surrendered at $57.50 = $56,925.
• Net shares retained by insider: 2,197 − 990 = 1,207 shares (based on reported lines).
• Footnotes: F1 — conversion is one-for-one; F2/F4 — vesting schedules (1/3 per year from 2/9/2023 or 50%/50% on 2nd/3rd anniversaries); F3 — grant has no expiration date.
• Filing shows conversion/vesting and tax-withholding; no 10b5-1 plan or late-filing flag noted in the filing excerpt.

Context
This was a derivative conversion/vesting event with a sell-to-cover tax withholding (not an open-market sale). Such withholdings are routine to satisfy tax obligations and do not necessarily indicate insider sentiment about the company's stock. M = exercised/converted derivative; F = payment of exercise price or tax liability.