Zhang Leila 4

What Happened

• Zhang Leila, Chief Technology Officer of Yum China (YUMC), exercised/conversion of derivative awards on Feb 9, 2026, resulting in acquisition of 3,696 shares (2,009 + 1,687) at an exercise/conversion price reported as $0.00. To satisfy tax withholding, 1,664 of the newly issued shares were surrendered/disposed at $57.50 per share, totaling $95,680.
• The transactions are recorded as M (exercise/conversion of derivative) for the acquisitions and F (payment of exercise price or tax liability) for the withheld shares. These withholding shares are routine and used to cover tax obligations rather than an open-market sale.

Key Details

• Transaction date: 2026-02-09; Form 4 filed: 2026-02-11 (appears timely — filed within two business days).
• Prices: conversion recorded at $0.00 per share; withheld shares disposed at $57.50 per share for $95,680.
• Shares acquired: 2,009 and 1,687 (total 3,696); shares withheld/disposed for taxes: 1,664.
• Shares owned after the transaction: not specified in the provided filing details.
• Footnotes: F1 – conversions are one-for-one; F2/F4 – vesting schedules (some awards vest 1/3 per year from 2/9/2023 or 50% on second anniversary and 50% on third anniversary); F3 – one grant has no expiration date.

Context

• This appears to be a conversion/settlement of derivative awards (likely RSUs or similar) rather than an open-market buy or opportunistic sale. The withholding of 1,664 shares to cover taxes is a common administrative step (cashless-like) and does not necessarily signal a change in insider sentiment.
• For retail investors, purchases are typically more informative than routine withholding/sales; here the material action is exercise/conversion and standard tax withholding.