Lu Xueling 4

What Happened

• Lu Xueling, Controller and Principal Accounting Officer of Yum China (YUMC), exercised/converted derivative awards on Feb 10, 2026, resulting in the acquisition of 1,543 shares (317 + 1,226) at $0.00 per share (one-for-one conversion per filing). To satisfy tax obligations, 695 of those shares were surrendered/withheld at $57.12 per share, yielding a cash value of $39,698 reported as a disposition (tax withholding).

Key Details

• Transaction date: 2026-02-10; Form 4 filed: 2026-02-12.
• Acquired: 317 and 1,226 shares (total 1,543) via exercise/conversion (transaction code M) at $0.00.
• Disposed (tax withholding): 695 shares at $57.12, total value $39,698 (transaction code F).
• Filing shows derivative items both acquired and disposed consistent with conversion and immediate withholding; shares owned after the transaction were not provided in the excerpt.
• Relevant footnotes: F1 = one-for-one conversion; F2/F4 = vesting schedules (25% per year beginning 2/10/2023 and 1/3 per year from 2/10/2025); F3 = grant has no expiration date.
• No 10b5-1 plan or late filing indication shown in the provided data.

Context

• This appears to be a routine conversion/exercise of company awards with a portion of shares surrendered to cover tax withholding (a common cashless exercise/tax-surrender method), not an open-market sale of additional shares.
• Such withholdings are administrative and do not necessarily indicate insider sentiment about the stock; purchases (net buys) are generally more informative for signaling than routine tax-related dispositions.