Yum China Files 8-K: Operations Update, Director Changes

TL;DR

Yum China dropped an 8-K: financial updates, director shuffle, and executive pay details. Keep an eye on this.

AI Summary

Yum China Holdings, Inc. filed an 8-K on August 5, 2024, reporting on results of operations and financial condition as of August 2, 2024. The filing also disclosed the departure of a director, the election of a new director, and compensatory arrangements for certain officers. Additionally, it included a Regulation FD disclosure and financial statements with exhibits.

Why It Matters

This filing provides investors with crucial updates on Yum China's financial performance and significant corporate governance changes, impacting their understanding of the company's stability and leadership.

Risk Assessment

Risk Level: medium — The filing involves financial reporting and changes in corporate governance, which can introduce medium-level risk due to potential impacts on stock performance and investor confidence.

Key Players & Entities

• Yum China Holdings, Inc. (company) — Registrant
• August 2, 2024 (date) — Date of earliest event reported
• August 5, 2024 (date) — Date of report
• Delaware (jurisdiction) — State of incorporation

FAQ

Key Financial Figures

• $0.01 — ch registered Common Stock, par value $0.01 per share YUMC New York Stock Excha
• $35,000 — fficer, with a monthly base salary of US$35,000 for 80 hours of service per month durin
• $6,560 — pproved an additional cash payment of US$6,560 per month to Mr. Ding for the duration
• $315,000 — entitled to an annual retainer equal to $315,000 for her service as a director, which wi

Filing Documents

• yumc-20240802.htm (8-K) — 67KB
• yumc-ex10_1.htm (EX-10.1) — 78KB
• yumc-ex99_1.htm (EX-99.1) — 2509KB
• yumc-ex99_2.htm (EX-99.2) — 23KB
• yumc-ex99_3.htm (EX-99.3) — 7KB
• img85703795_0.jpg (GRAPHIC) — 10KB
• 0000950170-24-090869.txt ( ) — 2959KB
• yumc-20240802.xsd (EX-101.SCH) — 53KB
• yumc-20240802_htm.xml (XML) — 6KB

02

Item 2.02. Results of Operations and Financial Condition. On August 5, 2024, Yum China Holdings, Inc. (the "Company") issued a press release announcing its unaudited results for the second quarter ended June 30, 2024. A copy of the press release is being furnished as Exhibit 99.1 to this Current Report on Form 8-K.

02

Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers. Chief Financial Officer Transition On August 2, 2024, Mr. Andy Yeung notified the Company that he intends to resign as Chief Financial Officer of the Company. Mr. Yeung will step down from the position of Chief Financial Officer, effective September 30, 2024.The Board of Directors of the Company (the "Board") has appointed Mr. Adrian Ding, the Company's Chief Investment Officer and General Manager of the Company's Lavazza joint venture, as its Acting Chief Financial Officer, effective October 1, 2024. In connection with Mr. Yeung's resignation, the Company and Mr. Yeung entered into a transition and advisor agreement, (the "Transition Agreement"). Pursuant to the Transition Agreement, from October 1, 2024 to February 28, 2025 (the "Transition Period"), Mr. Yeung will continue to be employed by the Company to provide advisory services to the Company's Chief Executive Officer, with a monthly base salary of US$35,000 for 80 hours of service per month during the Transition Period. Mr. Yeung will also be entitled to a cash bonus under the 2024 annual incentive program, with any payout based on the actual individual factor and team factor results to be approved by the Compensation Committee of the Board. Under the terms of the Transition Agreement, Mr. Yeung has agreed to be bound by covenants relating to non-competition, non-solicitation, non-disparagement and non-disclosure. The foregoing summary of the Transition Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the Transition Agreement, a copy of which is attached hereto as Exhibit 10.1 and is incorporated herein by reference. Mr. Adrian Ding, age 38, joined the Company in March 2019 as Vice President of Corporate Finance. He has served as Chief Investment Officer of the Company since February

01

Item 7.01. Regulation FD Disclosure. A copy of the press release announcing the CFO transition and the director appointment is attached as Exhibit 99.2 to this Current Report on Form 8-K. A copy of the resignation letter of Mr. Yeung is attached as Exhibit 99.3 to this Current Report on Form 8-K.

01

Item 9.01.

Financial Statements and Exhibits

Financial Statements and Exhibits. (d) Exhibits. The following exhibits are furnished with this report: Exhibit No. Exhibit Description 10.1 Transition and Advisor Agreement, dated August 4, 2024, by and between Yum China Holdings, Inc. and Andy Yeung. 99.1 Press Release of Yum China Holdings, Inc. issued August 5, 2024 announcing its unaudited results for the second quarter ended June 30, 2024. 99.2 Press Release of Yum China Holdings, Inc. issued August 5, 2024 announcing the CFO transition and the director appointment. 99.3 Resignation Letter of Andy Yeung dated August 2, 2024. 104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. YUM CHINA HOLDINGS, INC. By: /s/ Pingping Liu Name: Pingping Liu Title: Chief Legal Officer Date: August 5, 2024