Impact Analysis of JINSHI RESOURCES' 2026 Equity Incentive Plan for 8 Million Shares

Based on in-depth research of JINSHI RESOURCES (603505.SS), I systematically analyze the impact of the 2026 equity incentive plan for 8 million shares on the company’s valuation and shareholder returns.

According to the latest market data [0], JINSHI RESOURCES currently has a market capitalization of 15.23 billion USD, a share price of 18.10 USD, and a total share capital of approximately 841 million shares. The 8 million share equity incentive plan will cause

, which is at a low level in the industry.

• Diluted total share capital: 849 million shares
• Theoretical share price impact: -$0.17 (-0.95%)
• Diluted theoretical share price: $17.93

• EPS Dilution
  : Under different growth scenarios, the EPS dilution rate is around 0.94%
• P/E Ratio Impact
  : Considering the current P/E ratio of 62.41x, short-term valuation is under pressure by approximately 0.95%
• Market Reaction
  : Usually, the share price will adjust by 2-5% in the short term after the equity incentive plan is announced

From the chart analysis, if the incentive plan is effective, the dilution loss can be offset through performance improvement within 3-5 years:

• Performance Assessment Mechanism
  : Incentive plans are usually linked to key indicators such as ROE, revenue growth rate, and net profit
• Core Talent Retention
  : Effective incentive mechanisms can reduce key talent turnover by 15-30%
• Innovation Motivation Enhancement
  : Employee shareholding can boost R&D investment and innovation enthusiasm

Based on calculations for different investment scales:

• Small Investors
  : Dilution effect is relatively obvious; it is recommended to focus on long-term value
• Institutional Investors
  : Can reduce dilution costs through block trades
• Strategic Investors
  : If optimistic about the company’s long-term development, short-term dilution impact can be ignored

From the risk-reward matrix analysis:

• Without Incentive Plan
  : Risk-return ratio is relatively stable, with an annualized expectation of 5-18%
• With Incentive Plan
  : Risk increases in the short term, but long-term annualized returns can reach 7-25%

According to industry research [1], the dilution effect of equity incentive plans is usually controlled within the range of 1-3%:

• Technology Companies
  : Average dilution of 2-3%, with the most significant incentive effect
• Traditional Manufacturing
  : Average dilution of 0.5-1.5%, with relatively mild incentive effect
• Resource Companies
  : JINSHI RESOURCES’ 0.95% dilution is at the industry average level

1. Wait-and-See Attitude
   : Pay attention to the specific terms of the incentive plan and market reactions
2. Technical Analysis
   : If the share price oversells, consider buying on dips
3. Capital Flow
   : Monitor whether institutional funds increase positions during adjustments

1. Performance Tracking
   : Focus on the completion of performance assessment indicators set by the incentive plan
2. Financial Indicators
   : Monitor changes in ROE, gross profit margin, and net profit margin
3. Industry Position
   : Evaluate changes in the company’s competitive position in the lithium resource sector

1. In-depth Fundamental Research
   : Pay attention to the progress of the company’s lithium mica extraction technology
2. Capacity Expansion
   : Track the progress of new capacity deployment and capacity utilization
3. Downstream Demand
   : Focus on the growth of downstream demand such as new energy vehicles and energy storage

1. Incentive Effect Below Expectations
   : If the performance assessment targets are unreasonable, it may affect the incentive effect
2. Talent Loss Risk
   : If the incentive intensity is insufficient, core talent loss may still occur
3. Industry Cyclicality
   : The lithium resource industry has strong cyclical characteristics
4. Policy Risk
   : Changes in new energy policies may affect the company’s long-term development

JINSHI RESOURCES’ 2026 equity incentive plan for 8 million shares has a

, which is within a controllable range. If the plan can effectively motivate the core team and improve the company’s operational efficiency and technological innovation capabilities, it will have a positive impact on shareholder value in the long run.

• Investors with Strong Risk Tolerance
  : Can buy on dips during share price adjustments to share long-term growth benefits
• Conservative Investors
  : It is recommended to wait for the implementation effect of the incentive plan to become apparent before making decisions
• Institutional Investors
  : Can be used as a long-term strategic allocation target, ignoring short-term fluctuations

[0] Gilin API Data - JINSHI RESOURCES (603505.SS) Financial and Market Data
[1] Jingtian & Gongcheng Law Firm - Research Report on Key Points of Equity Incentives for Non-listed Technology Enterprises
[2]环旭电子2025年半年度报告 - Equity Incentive Implementation Case Analysis