Director Shum Heung Yeung filed a Form 4 with the SEC on September 2, 2026, reporting the exercise of stock options and the sale of Class A Ordinary Shares of Youdao, Inc. (NYSE:DAO) on August 31 and September 1, 2026.

Key Highlights

  • Four option grants exercised: Shum Heung Yeung exercised options covering 4,000, 3,997, 9,189, and 4,012 Class A Ordinary Shares across two days, August 31 and September 1, 2026.
  • Exercise prices ranged: One grant carried an exercise price of $4.0 per share; three grants carried an exercise price of $4.5 per share.
  • Shares sold at weighted averages: Shares sold on August 31, 2026 fetched a weighted average price of $16.6229 per ADS; shares sold on September 1, 2026 fetched a weighted average price of $16.1784 per ADS.
  • Post-transaction ownership: Following all reported transactions, the reporting person directly held 60,773 Class A Ordinary Shares.
  • Remaining derivative securities: After all exercises, the reporting person held zero derivative securities beneficially owned following the final reported transaction.
  • Filing signed by attorney-in-fact: The form was signed by Liting Ren as attorney-in-fact for Shum Heung Yeung on September 2, 2026.

Youdao Director's Option Exercises and Share Sales: Transaction Details

According to the filing, Shum Heung Yeung, identified as a Director of Youdao, Inc. (NYSE:DAO), exercised four separate stock option awards and sold the resulting Class A Ordinary Shares in the form of American Depositary Shares (ADSs) on August 31 and September 1, 2026. The transactions were reported via a Form 4 filed on September 2, 2026.

On August 31, 2026, the reporting person exercised three option awards. The first covered 4,000 shares at an exercise price of $4.0 per share, originally granted on February 25, 2020, and expiring February 26, 2027. The second covered 3,997 shares at $4.5 per share, granted January 25, 2021, and expiring January 26, 2027. The third covered 9,189 shares at $4.5 per share, granted January 18, 2022, and expiring January 18, 2028. All 17,186 shares acquired through these exercises on August 31 were sold at a weighted average price of $16.6229 per ADS, according to the filing.

On September 1, 2026, the reporting person exercised a fourth option covering 4,012 shares at $4.5 per share, also originally granted on January 18, 2022, and expiring January 18, 2028. Those 4,012 shares were subsequently sold at a weighted average price of $16.1784 per ADS. The filing notes that all option exercises were settled into ADSs, and the share counts represent the ordinary shares underlying those ADSs. Following all reported transactions, the reporting person directly held 60,773 Class A Ordinary Shares and no remaining derivative securities.

What Was Disclosed

Youdao, Inc. director Shum Heung Yeung disclosed the exercise of four stock option awards totaling 21,198 underlying Class A Ordinary Shares and the subsequent sale of all resulting shares as ADSs on August 31 and September 1, 2026, leaving a direct holding of 60,773 shares.