Shenzhen Autot Electronic Co., Ltd. Daily Announcement Series

2026-03-28 03:45:05

The company and all members of the board guarantee that the contents of the information disclosure are true, accurate, and complete, with no false records, misleading statements, or significant omissions.

On March 26, 2026, the sixth board of directors of Shenzhen Aoto Electronics Co., Ltd. (hereinafter referred to as the “Company”) held its sixth meeting in the conference room on the 9th floor of the High-tech Joint Headquarters Building, No. 63 Xuefu Road, Yuehai Street, Nanshan District, Shenzhen. The meeting notice was sent to all directors after obtaining the voting results of the first extraordinary general meeting of shareholders held on March 26, 2026, and all directors unanimously agreed to waive the meeting notice time requirement. This meeting was held in a combination of on-site and communication methods, with 7 directors expected to attend, and 7 directors actually attending the meeting, among them, Mr. Qiao Renquan participated in the voting by communication.

This board meeting was convened and presided over by Chairman Mr. Wu Hanqu. All senior management personnel of the company attended this meeting. The convening and voting of the meeting complied with the relevant provisions of the Company Law of the People’s Republic of China (hereinafter referred to as the “Company Law”) and other laws, administrative regulations, normative documents, and the Articles of Association of Shenzhen Aoto Electronics Co., Ltd. (hereinafter referred to as the “Articles of Association”). The attending directors reviewed and approved the following proposals by a show of hands:

Review and approve the proposal on adjusting the relevant matters of the 2026 Restricted Stock Incentive Plan.

Given that one of the incentive objects in the list of proposed incentive objects for the 2026 Restricted Stock Incentive Plan (hereinafter referred to as “this incentive plan”) engaged in buying and selling the company’s stock after being aware of this incentive plan but before the company disclosed the announcement of this incentive plan, the company, in accordance with the principle of prudence, has canceled the incentive qualification of that incentive object; another incentive object voluntarily gave up its proposed benefits for personal reasons, and the company adjusted the list of incentive objects and the number of grants for this incentive plan. After the adjustment, the total number of incentive objects in this incentive plan was reduced from 44 to 42, and the total amount of rights granted in this incentive plan was adjusted from 3 million shares to 2.96 million shares.

Other than the above adjustments, the other contents of this incentive plan implemented this time are consistent with the incentive plan passed at the first extraordinary general meeting of shareholders in 2026. According to the authorization of the first extraordinary general meeting of shareholders in 2026, this adjustment does not need to be submitted to the company’s shareholders’ meeting for review.

For details, please refer to the announcement on adjusting the relevant matters of the 2026 Restricted Stock Incentive Plan disclosed by the company in the Securities Times, China Securities Journal, Shanghai Securities Journal, and the Giant Tide Information Network (www.cninfo.com.cn) (Announcement No.: 2026-014).

This proposal was reviewed and approved by the Board of Directors’ Compensation and Assessment Committee before being submitted for board review. The Compensation and Assessment Committee expressed its consent regarding this matter, for specific details please refer to the verification opinion of the Board of Directors’ Compensation and Assessment Committee on the list of incentive objects (grant date) of the company’s 2026 Restricted Stock Incentive Plan disclosed on the Giant Tide Information Network (www.cninfo.com.cn).

Beijing Jing Tian Gong Cheng (Shenzhen) Law Firm issued a legal opinion on this matter, for specific details please refer to the legal opinion of Beijing Jing Tian Gong Cheng (Shenzhen) Law Firm on the adjustment and granting of the company’s 2026 Restricted Stock Incentive Plan disclosed on the Giant Tide Information Network (www.cninfo.com.cn).

Voting results: 5 votes in favor, 0 votes against, 0 abstentions, 2 abstentions.

Directors Mr. Yang Sihua and Mr. Qiao Renquan, as incentive objects of the 2026 Restricted Stock Incentive Plan (hereinafter referred to as “this incentive plan”), abstained from voting on this proposal.

Review and approve the proposal on granting restricted stock to the incentive objects of the 2026 Restricted Stock Incentive Plan.

In accordance with the Management Measures for Equity Incentives of Listed Companies and the relevant provisions of this incentive plan, as well as the authorization of the first extraordinary general meeting of shareholders in 2026, the board believes that the granting conditions specified in the company’s 2026 Restricted Stock Incentive Plan have been met, and agrees to set March 26, 2026, as the grant date to grant 2.96 million shares of restricted stock at a grant price of 3.40 yuan/share to the 42 incentive objects that meet the granting conditions.

For details, please refer to the announcement on granting restricted stock to the incentive objects of the 2026 Restricted Stock Incentive Plan disclosed by the company in the Securities Times, China Securities Journal, Shanghai Securities Journal, and the Giant Tide Information Network (www.cninfo.com.cn) (Announcement No.: 2026-015).

Voting results: 5 votes in favor, 0 votes against, 0 abstentions, 2 abstentions.

Directors Mr. Yang Sihua and Mr. Qiao Renquan, as incentive objects of this incentive plan, abstained from voting on this proposal.

Documents for reference
Resolution of the sixth meeting of the sixth board of directors;
Resolution of the fifth meeting of the Compensation and Assessment Committee of the sixth board of directors;
Legal opinion from Beijing Jing Tian Gong Cheng (Shenzhen) Law Firm regarding the adjustment and granting of the company’s 2026 Restricted Stock Incentive Plan.

This announcement is hereby made.

Shenzhen Aoto Electronics Co., Ltd.

Board of Directors

March 27, 2026

Securities code: 002587 Securities abbreviation: Aoto Electronics Announcement No.: 2026-014

Shenzhen Aoto Electronics Co., Ltd.

Announcement on adjusting relevant matters of the 2026 Restricted Stock Incentive Plan

Shenzhen Aoto Electronics Co., Ltd. (hereinafter referred to as the “Company”) held the sixth meeting of the sixth board of directors on March 26, 2026, to review and approve the proposal on adjusting relevant matters of the 2026 Restricted Stock Incentive Plan. According to the relevant provisions of the company’s 2026 Restricted Stock Incentive Plan (hereinafter referred to as “this incentive plan”) and the authorization of the first extraordinary general meeting of shareholders in 2026, the board adjusted the list of proposed incentive objects and the number of grants for this incentive plan. The relevant matters are now announced as follows:

Review procedures already carried out for this incentive plan
On March 6, 2026, the company held the fifth meeting of the sixth board of directors, reviewing and approving the proposals on the “2026 Restricted Stock Incentive Plan (Draft) and its Summary,” the “Implementation Assessment Management Measures for the 2026 Restricted Stock Incentive Plan,” and the “Proposal for Shareholders to Authorize the Board of Directors to Handle Relevant Matters of the 2026 Restricted Stock Incentive Plan.” The board’s Compensation and Assessment Committee verified the relevant matters of this incentive plan and issued relevant verification opinions.
From March 10 to March 19, 2026, the company publicly announced the names and positions of the proposed incentive objects for this incentive plan internally. By the end of the public announcement period, the board’s Compensation and Assessment Committee had not received any objections related to the incentive objects of this incentive plan. On March 20, 2026, the company disclosed the “Explanation and Verification Opinion on the Public Announcement of the List of Incentive Objects of the Company’s 2026 Restricted Stock Incentive Plan” on the Giant Tide Information Network (www.cninfo.com.cn) (Announcement No.: 2026-009).
On March 26, 2026, the company held the first extraordinary general meeting of shareholders in 2026, reviewing and approving the proposals on the “2026 Restricted Stock Incentive Plan (Draft) and its Summary,” the “Implementation Assessment Management Measures for the 2026 Restricted Stock Incentive Plan,” and the “Proposal for Shareholders to Authorize the Board of Directors to Handle Relevant Matters of the 2026 Restricted Stock Incentive Plan.” On the same day, the company disclosed the “Self-Inspection Report on the Insider Information Knowledge Persons and Incentive Objects Buying and Selling Company Stocks” of the 2026 Restricted Stock Incentive Plan on the Giant Tide Information Network (www.cninfo.com.cn) (Announcement No.: 2026-012).
On March 26, 2026, the company held the sixth meeting of the sixth board of directors, reviewing and approving the proposals on the “Adjusting Relevant Matters of the 2026 Restricted Stock Incentive Plan” and the “Granting Restricted Stock to the Incentive Objects of the 2026 Restricted Stock Incentive Plan.” The board’s Compensation and Assessment Committee verified and expressed its opinions regarding the adjustments to the list of incentive objects, the number of grants, and the granting matters.
Situation of this incentive plan adjustment

Given that one of the incentive objects in the list of proposed incentive objects for this incentive plan engaged in buying and selling the company’s stock after being aware of the incentive plan but before the company disclosed the announcement of this incentive plan, the company, in accordance with the principle of prudence, has canceled the incentive qualification of that incentive object; another incentive object voluntarily gave up its proposed benefits for personal reasons, and the company adjusted the list of incentive objects and the number of grants for this incentive plan. After the adjustment, the total number of incentive objects in this incentive plan was reduced from 44 to 42, and the total amount of rights granted in this incentive plan was adjusted from 3 million shares to 2.96 million shares. Other than the above adjustments, the other contents of this incentive plan implemented this time are consistent with the incentive plan passed at the first extraordinary general meeting of shareholders in 2026. According to the authorization of the first extraordinary general meeting of shareholders in 2026, this adjustment does not need to be submitted to the company’s shareholders’ meeting for review.

Impact of this adjustment on the company

This adjustment complies with the Management Measures for Equity Incentives of Listed Companies (hereinafter referred to as the “Management Measures”) and other laws, regulations, normative documents, and the relevant provisions of this incentive plan. The adjustment of the list of incentive objects and the number of grants will not have a substantial impact on the company’s implementation of this incentive plan, nor will it have a substantial impact on the company’s financial status and operating results, and there are no situations that would harm the interests of the company and all shareholders.

Opinion of the Board of Directors’ Compensation and Assessment Committee

This adjustment complies with the Management Measures and other laws, regulations, normative documents, and the relevant provisions of this incentive plan. The adjustment matters are within the authorization scope of the company’s first extraordinary general meeting of shareholders in 2026. The adjustment procedures are legal and compliant, and there are no situations that would harm the interests of the company and all shareholders.

Conclusion of the legal opinion

Beijing Jing Tian Gong Cheng (Shenzhen) Law Firm believes that:

(1) The company’s adjustment and this grant have obtained the necessary approvals and authorizations at this stage, complying with the Management Measures, the Shenzhen Stock Exchange Listing Rules, the Shenzhen Stock Exchange Listed Company Self-Regulatory Guidelines No. 1 on Business Handling, and the 2026 Restricted Stock Incentive Plan (Draft) of Shenzhen Aoto Electronics Co., Ltd. (hereinafter referred to as the “Equity Incentive Plan (Draft)”) and other relevant provisions;

(2) This adjustment complies with the relevant provisions of the Management Measures and the Equity Incentive Plan (Draft);

(3) The determined grant date, grant objects, grant price, and grant quantity comply with the relevant provisions of the Management Measures and the Equity Incentive Plan (Draft); the conditions for this grant have been met, and the company’s implementation of this grant complies with the relevant provisions of the Management Measures and the Equity Incentive Plan (Draft);

(4) This adjustment and this grant still need to legally fulfill the information disclosure obligations and handle stock grant registration and other matters.

Documents for reference
Resolution of the sixth meeting of the sixth board of directors;
Resolution of the fifth meeting of the Compensation and Assessment Committee of the sixth board of directors;
Legal opinion from Beijing Jing Tian Gong Cheng (Shenzhen) Law Firm regarding the adjustment and granting of the company’s 2026 Restricted Stock Incentive Plan.

This announcement is hereby made.

Shenzhen Aoto Electronics Co., Ltd.

Board of Directors

March 27, 2026

Securities code: 002587 Securities abbreviation: Aoto Electronics Announcement No.: 2026-015

Shenzhen Aoto Electronics Co., Ltd.

Announcement on granting restricted stock to the incentive objects of the 2026 Restricted Stock Incentive Plan

Important content reminder:

Grant date of restricted stock: March 26, 2026.
Quantity of restricted stock granted: 2.96 million shares.
Grant price of restricted stock: 3.40 yuan/share.
Number of persons granted restricted stock: 42 persons.

In accordance with the Management Measures for Equity Incentives of Listed Companies (hereinafter referred to as the “Management Measures”), the relevant provisions of the company’s 2026 Restricted Stock Incentive Plan (hereinafter referred to as “this incentive plan”), and the authorization of the first extraordinary general meeting of shareholders in 2026, the board believes that the granting conditions of the company’s 2026 Restricted Stock Incentive Plan have been satisfied, and determines March 26, 2026, as the grant date to grant a total of 2.96 million shares of restricted stock at a price of 3.40 yuan/share to the 42 incentive objects that meet the granting conditions. The relevant matters are now announced as follows:

Brief description of this incentive plan

(1) Grant situation of this incentive plan

Incentive tool: Restricted stock.
Source of stocks: The company issues ordinary A-shares of the company to the incentive objects.
Grant quantity: The incentive plan intends to grant 2.96 million shares of restricted stock to the incentive objects, accounting for approximately 0.45% of the company’s total share capital of 6,515.44156 million shares at the time of the announcement of this incentive plan, with no reserve portion. As of the announcement date of this incentive plan, the total number of shares involved in all effective equity incentive plans does not exceed 10% of the company’s total share capital, and no individual incentive object has received more than 1% of the company’s total share capital through all effective equity incentive plans during the validity period.

If, during the period from the announcement date of this incentive plan to the completion of the registration of restricted stock shares by the incentive objects, the company has capital reserves to increase share capital, distribute stock dividends, split shares, issue additional shares, or reduce shares, corresponding adjustments should be made to the number of restricted stocks.

Incentive objects: The total number of incentive objects granted in this incentive plan is 42. This includes mid-level management personnel and key core personnel at the time of the announcement of this incentive plan in the company or its controlling subsidiaries, excluding independent directors, shareholders holding 5% or more shares of the company, their related parties, actual controllers, and their spouses, parents, and children, as well as personnel who are prohibited from becoming incentive objects according to Article 8 of the Management Measures.
Grant price: 3.40 yuan/share. If, during the period from the announcement date of this incentive plan to the completion of the registration of restricted stock shares by the incentive objects, the company has capital reserves to increase share capital, distribute stock dividends, split shares, issue additional shares, or reduce shares, the grant price of the restricted stock should be correspondingly adjusted.

(2) Validity period, lock-up period, lifting lock arrangements, and selling restrictions of this incentive plan

Validity period of this incentive plan

The validity period of this incentive plan is from the completion of the registration of restricted stock grants until all granted restricted stocks are lifted from restriction or repurchased and canceled, with a maximum of no more than 36 months.

Lock-up period and lifting lock arrangements of this incentive plan

The lock-up period for the restricted stocks granted in this incentive plan is set at 12 months and 24 months from the completion of the grant registration.

The incentive objects may not transfer, use as collateral, or repay debts with the restricted stocks granted during the lock-up period before they are lifted. The shares obtained from the restricted stocks granted due to capital reserves, stock dividends, or splits will also be restricted, and may not be sold in the secondary market, transferred, used as collateral, or repaid with debts. The lifting lock period for such shares will be the same as the lifting lock period for the restricted stocks. If the company repurchases and cancels the restricted stocks that have not been lifted from restriction, those shares will also be repurchased and canceled.

If the lifting lock conditions are not met, the restricted stocks may not be lifted or will be deferred to the next period. After the expiration of the lock-up period, the company will handle the lifting of restrictions for the incentive objects that meet the lifting conditions, and the restricted stocks held by the incentive objects that do not meet the lifting conditions will be repurchased and canceled by the company.

The lifting lock periods and schedules for the restricted stocks granted in this incentive plan are shown in the table below:

If the restricted stocks that have not applied for lifting restrictions during the above agreement period or cannot apply for lifting restrictions due to not meeting the lifting conditions, the company will repurchase and cancel them according to the principles stipulated in this incentive plan.

Selling restriction period of this incentive plan

The selling restriction period refers to the time frame during which the stocks obtained by the incentive objects after lifting restrictions are restricted from being sold. The lock-up regulations of this restricted stock incentive plan will be implemented in accordance with the provisions of the Company Law of the People’s Republic of China, the Securities Law of the People’s Republic of China, and other relevant laws, regulations, normative documents, and the Articles of Association of Shenzhen Aoto Electronics Co., Ltd., with the specific contents as follows:

(1) If the incentive objects are the company’s directors or senior management personnel, the number of shares they transfer each year during their tenure cannot exceed 25% of the total shares they hold in the company; within six months after leaving office, they may not transfer the shares they hold in the company.

(2) If the incentive objects are the company’s directors, senior management personnel, and their spouses, parents, and children, if they sell the stocks they hold within six months after buying, or buy stocks again within six months after selling, the income obtained will belong to the company, and the company’s board of directors will recover the income obtained (except for situations exempted from short-term trading as stipulated by the China Securities Regulatory Commission).

(3) During the validity period of this incentive plan, if the relevant regulations regarding the transfer of shares held by the company’s directors and senior management personnel change in the Company Law, Securities Law, and other relevant laws, regulations, normative documents, and the Articles of Association, the transfer of shares held by this part of the incentive objects must comply with the amended provisions of the Company Law, Securities Law, and other relevant laws, regulations, normative documents, and the Articles of Association at the time of transfer.

(3) Conditions for lifting restrictions of this incentive plan

During the lifting lock period, the incentive objects can only lift the restrictions of the granted restricted stocks if the following conditions are met:

The company has not experienced any of the following situations:

(1) The financial accounting report for the most recent fiscal year has been issued with a negative opinion or unable to express an opinion by a registered accountant;

(2) The internal control of the financial report for the most recent fiscal year has been issued with a negative opinion or unable to express an opinion by a registered accountant;

(3) In the most recent 36 months after listing, there have been instances of profit distribution not conducted according to laws, regulations, the Articles of Association, or public commitments;

(4) There are legal provisions prohibiting the implementation of equity incentives;

(5) Other situations identified by the China Securities Regulatory Commission (hereinafter referred to as “CSRC”).

The incentive objects have not experienced any of the following situations:

(1) Identified as inappropriate candidates by the stock exchange in the last 12 months;

(2) Identified as inappropriate candidates by the CSRC and its dispatched agencies in the last 12 months;

(3) Administrative penalties or market entry bans due to major violations in the last 12 months by the CSRC and its dispatched agencies;

(4) Situations that prohibit them from serving as the company’s directors or senior management personnel as stipulated by the Company Law;

(5) Legal provisions prohibiting participation in equity incentives of listed companies;

(6) Other situations identified by the CSRC.

If the company experiences any of the situations specified in the first paragraph, all incentive objects will have their restricted stocks that have been granted but not lifted from restrictions repurchased and canceled by the company at the grant price; if any incentive object experiences any of the situations specified in the second paragraph, the company will terminate its rights to participate in this incentive plan, and the restricted stocks granted to that incentive object but not lifted from restrictions will also be repurchased and canceled by the company at the grant price.

Company-level performance assessment requirements

The assessment years for the restricted stocks granted in this incentive plan are the two fiscal years of 2026-2027, with assessments conducted in each fiscal year. The proportion of lifting restrictions at the company level will be determined based on the performance targets and actual performance achieved.

The performance assessment targets for the restricted stocks granted in this incentive plan for each year are shown in the table below:

Note: 1. The above “net profit” indicator refers to the net profit attributable to shareholders of the listed company in the audited consolidated financial statements, excluding non-recurring gains and losses and excluding the impact of share payment expenses generated during the assessment period of the equity incentive plan and employee stock ownership plan.

The performance targets related to the lifting of restrictions for the above restricted stocks do not constitute the company’s performance forecast and substantive commitment to investors.

According to the actual performance achievement rate (X) during each lifting lock period (performance achievement rate = actual net profit achieved in the year/target net profit in the year × 100%), the actual lifting lock coefficients at the company level are as follows:

Note: The above results retain two decimal places, and the number of lifted restrictions will be rounded to an integer.

If the company fails to meet the above performance assessment targets, the restricted stocks planned to be lifted from restrictions by all incentive objects in that year will not be lifted, and the company will repurchase and cancel them at the grant price.

Individual-level assessment requirements

The individual-level assessment of the incentive objects will be organized and implemented according to the company’s relevant regulations, and the actual number of shares lifted from restrictions for the incentive objects will be determined based on the following performance assessment results table:

The actual number of restricted stocks lifted from restrictions for the incentive object = planned number of restricted stocks lifted from restrictions for the individual × company-level lifting lock coefficient (N) × individual performance assessment coefficient (M).

The restricted stocks that cannot be lifted from restrictions or cannot be fully lifted from restrictions due to individual-level performance assessment reasons cannot be deferred to the next year and will be repurchased and canceled by the company at the grant price.

Review procedures already carried out for this incentive plan
On March 6, 2026, the company held the fifth meeting of the sixth board of directors, reviewing and approving the proposals on the “2026 Restricted Stock Incentive Plan (Draft) and its Summary,” the “Implementation Assessment Management Measures for the 2026 Restricted Stock Incentive Plan,” and the “Proposal for Shareholders to Authorize the Board of Directors to Handle Relevant Matters of the 2026 Restricted Stock Incentive Plan.” The board’s Compensation and Assessment Committee verified the relevant matters of this incentive plan and issued relevant verification opinions.
From March 10 to March 19, 2026, the company publicly announced the names and positions of the proposed incentive objects for this incentive plan internally. By the end of the public announcement period, the board’s Compensation and Assessment Committee had not received any objections related to the incentive objects of this incentive plan. On March 20, 2026, the company disclosed the “Explanation and Verification Opinion on the Public Announcement of the List of Incentive Objects of the Company’s 2026 Restricted Stock Incentive Plan” on the Giant Tide Information Network (www.cninfo.com.cn) (Announcement No.: 2026-009).
On March 26, 2026, the company held the first extraordinary general meeting of shareholders in 2026, reviewing and approving the proposals on the “2026 Restricted Stock Incentive Plan (Draft) and its Summary,” the “Implementation Assessment Management Measures for the 2026 Restricted Stock Incentive Plan,” and the “Proposal for Shareholders to Authorize the Board of Directors to Handle Relevant Matters of the 2026 Restricted Stock Incentive Plan.” On the same day, the company disclosed the “Self-Inspection Report on the Insider Information Knowledge Persons and Incentive Objects Buying and Selling Company Stocks” of the 2026 Restricted Stock Incentive Plan on the Giant Tide Information Network (www.cninfo.com.cn) (Announcement No.: 2026-012).
On March 26, 2026, the company held the sixth meeting of the sixth board of directors, reviewing and approving the proposals on the “Adjusting Relevant Matters of the 2026 Restricted Stock Incentive Plan” and the “Granting Restricted Stock to the Incentive Objects of the 2026 Restricted Stock Incentive Plan.” The board’s Compensation and Assessment Committee verified and expressed its opinions regarding the adjustments to the list of incentive objects, the number of grants, and the granting matters.
The board’s explanation on the fulfillment of granting conditions

According to the provisions of this incentive plan, when the following granting conditions are met, the company shall grant restricted stocks to the incentive objects; conversely, if any of the following granting conditions are not met, restricted stocks cannot be granted to the incentive objects.

(1) The company has not experienced any of the following situations:

The financial accounting report for the most recent fiscal year has been issued with a negative opinion or unable to express an opinion by a registered accountant;
The internal control of the financial report for the most recent fiscal year has been issued with a negative opinion or unable to express an opinion by a registered accountant;
In the most recent 36 months after listing, there have been instances of profit distribution not conducted according to laws, regulations, the Articles of Association, or public commitments;
There are legal provisions prohibiting the implementation of equity incentives;
Other situations identified by the CSRC.

(2) The incentive objects have not experienced any of the following situations:

Identified as inappropriate candidates by the stock exchange in the last 12 months;
Identified as inappropriate candidates by the CSRC and its dispatched agencies in the last 12 months;
Administrative penalties or market entry bans due to major violations in the last 12 months by the CSRC and its dispatched agencies;
Situations that prohibit them from serving as the company’s directors or senior management personnel as stipulated by the Company Law;
Legal provisions prohibiting participation in equity incentives of listed companies;
Other situations identified by the CSRC.

After careful verification, the board believes that the company and the incentive objects participating in this incentive plan have not experienced or do not belong to any of the above situations, and there are no other situations that would prevent granting or becoming incentive objects. The granting conditions of this incentive plan have been met.

Relevant situation of this grant

(1) Grant date: March 26, 2026

(2) Source of stocks: The company issues ordinary A-shares of the company to the incentive objects.

(3) Number of grants: 42 persons, including mid-level management personnel and key core personnel at the time of the announcement of this incentive plan in the company or its controlling subsidiaries.

(4) Grant price: 3.40 yuan/share.

(5) Incentive tool: Restricted stock.

(6) Quantity and distribution of restricted stocks granted:

The number of restricted stocks granted by the company to the incentive objects is 2.96 million shares, accounting for approximately 0.45% of the company’s total share capital of 6,515.44156 million shares at the time of the announcement of this incentive plan. The distribution situation is as follows:

Note: 1. This incentive plan includes one foreign employee, who is a key personnel corresponding to the company’s position and plays an important role in the company’s operational development.

No individual incentive object has received more than 1% of the company’s total share capital through all effective equity incentive plans during the validity period. The total number of shares involved in all effective equity incentive plans does not exceed 10% of the company’s total share capital at the time of the announcement of this incentive plan.
The incentive objects of this incentive plan do not include independent directors and do not include shareholders holding 5% or more shares of the company, their related parties, or actual controllers and their spouses, parents, and children.
If there is a discrepancy between the total and the sum of the individual values in the above table, it is due to rounding.

(7) After this grant, it will not lead to the company’s equity distribution not meeting the listing conditions.

Differences between this incentive plan implementation and previously disclosed incentive plans

On March 26, 2026, the company held the sixth meeting of the sixth board of directors, reviewing and approving the proposal on adjusting relevant matters of the 2026 Restricted Stock Incentive Plan. Given that one of the incentive objects in the list of proposed incentive objects for this incentive plan engaged in buying and selling the company’s stock after being aware of the incentive plan but before the company disclosed the announcement of this incentive plan, the company, in accordance with the principle of prudence, has canceled the incentive qualification of that incentive object; another incentive object voluntarily gave up its proposed benefits for personal reasons, and the company adjusted the list of incentive objects and the number of grants for this incentive plan. After the adjustment, the total number of incentive objects in this incentive plan was reduced from 44 to 42, and the total amount of rights granted in this incentive plan was adjusted from 3 million shares to 2.96 million shares.

Impact of this grant on the company’s financial status and operating results

In accordance with the Accounting Standards for Enterprises No. 11 - Share-based Payments, the company will adjust the estimated number of restricted stocks that can be lifted from restrictions at each balance sheet date during the lock-up period based on changes in the number of persons eligible for lifting restrictions and the completion of performance indicators, and will record the service received during the period at the fair value of restricted stocks on the grant date as related costs or expenses and capital reserves.

According to the provisions of Accounting Standards for Enterprises No. 11 - Share-based Payments and Accounting Standards for Enterprises No. 22 - Recognition and Measurement of Financial Instruments, the company will confirm the share payment expenses for this incentive plan at the fair value of the restricted stocks on the grant date, and these expenses will be amortized according to the proportion of lifting restrictions during the implementation of this incentive plan. The incentive costs resulting from this incentive plan will be recorded in the regular gains and losses.

On March 26, 2026, the company granted 2.96 million shares of restricted stock to the incentive objects. According to Chinese accounting standards, the impact of the restricted stock granted in this incentive plan on the accounting costs for each period is shown in the table below:

Note: 1. The above cost amortization forecast does not represent the final accounting cost. The actual accounting cost is related to the actual grant date, closing price on the grant date, and the number of grants, as well as the actual effective and ineffective numbers. Shareholders are also reminded of the possible dilution effect.

The final result of the above cost amortization forecast on the company’s operating results will be subject to the annual audit report issued by the accounting firm.
If this incentive plan is terminated, accounting treatment will be conducted according to the relevant provisions of accounting standards.

The total expenses generated by this incentive plan will be recorded in the regular gains and losses. The company estimates that, without considering the stimulating effect of this incentive plan on the company’s performance, the amortization of expenses for this incentive plan will have an impact on the net profit for each year during the validity period. Considering the positive effect of this incentive plan on the company’s development, which stimulates employee enthusiasm and improves operational efficiency, the performance improvement brought by this incentive plan will far exceed the increase in expenses caused by it.

Stock trading status of directors and senior management participating in the incentive plan in the six months prior to the grant date

After the company’s self-inspection, there were no buy or sell transactions of company stock by directors and senior management participating in this incentive plan in the six months prior to the grant date.

Fund arrangements for incentive objects to purchase restricted stocks and pay personal income tax

The funds for incentive objects to purchase restricted stocks and pay personal income tax will be self-raised. The company promises not to provide loans, guarantees for loans, or any other form of financial assistance for the stocks obtained by the incentive objects under this incentive plan. The company will withhold and pay the personal income tax and other taxes that the incentive objects should pay according to the relevant national tax laws and regulations.

Use of funds raised by implementing the restricted stock incentive plan

The funds raised by this incentive plan will be used to supplement the company’s working capital.

Verification situation of the incentive object list by the board’s Compensation and Assessment Committee

After review, the board’s Compensation and Assessment Committee believes:

(1) Given that one of the incentive objects in the list of proposed incentive objects for this incentive plan engaged in buying and selling the company’s stock after being aware of this incentive plan but before the company disclosed the announcement of this incentive plan, the company, in accordance with the principle of prudence, has canceled the incentive qualification of that incentive object; another incentive object voluntarily gave up its proposed benefits for personal reasons, and the company adjusted the list of incentive objects and the number of grants for this incentive plan. After the adjustment, the total number of incentive objects in this incentive plan was reduced from 44 to 42, and the total amount of rights granted in this incentive plan was adjusted from 3 million shares to 2.96 million shares. Other than the above adjustments, the other contents of this incentive plan implemented this time are consistent with the incentive plan passed at the first extraordinary general meeting of shareholders in 2026. This adjustment complies with the Management Measures and other laws, regulations, normative documents, and the relevant provisions of this incentive plan. The adjustment matters are within the authorization scope of the company’s first extraordinary general meeting of shareholders in 2026, the adjustment procedures are legal and compliant, and there are no situations that would harm the interests of the company and all shareholders.

(2) The incentive objects of this incentive plan do not have any of the following circumstances that would disqualify them from becoming incentive objects:

Identified as inappropriate candidates by the stock exchange in the last 12 months;
Identified as inappropriate candidates by the CSRC and its dispatched agencies in the last 12 months;
Administrative penalties or market entry bans due to major violations in the last 12 months by the CSRC and its dispatched agencies;
Situations that prohibit them from serving as the company’s directors or senior management personnel as stipulated by the Company Law;
Legal provisions prohibiting participation in equity incentives of listed companies;
Other circumstances that would disqualify them from becoming incentive objects identified by the CSRC.

(3) The incentive objects of this incentive plan include directors, senior management personnel, mid-level management personnel, and key technical (business) backbones working in the company (including controlling subsidiaries), excluding independent directors and shareholders holding 5% or more shares of the company, their related parties, or actual controllers and their spouses, parents, and children.

(4) The incentive objects of this incentive plan comply with the conditions for incentive objects stipulated in the Company Law, Securities Law, Management Measures, and other laws, regulations, normative documents, and this incentive plan, and their qualifications as incentive objects for this incentive plan are legal and valid.

(5) Both the company and the incentive objects to whom the restricted stock is granted have not experienced disqualifying circumstances for granting restricted stocks, and the granting conditions for this incentive plan have been met.

(6) The determined grant date for this incentive plan complies with the Management Measures and the relevant provisions regarding the grant date in this incentive plan.

In summary, the board’s Compensation and Assessment Committee believes that all incentive objects of this incentive plan comply with the relevant provisions of laws,

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