Statement
The company and all members of the board guarantee that the content of this stock ownership plan is true, accurate, and complete, with no false records, misleading statements, or significant omissions. Special note: The terminology in this section is consistent with the "Definitions" section.
- The "2026 Partner Stock Ownership Plan (Draft)" is formulated by TCL Technology Group Co., Ltd. in accordance with the Company Law, Securities Law, Guidance Opinions, Self-Regulatory Guidelines No. 1, and other relevant laws, administrative regulations, rules, normative documents, and the Articles of Association.
- This stock ownership plan follows the principles of voluntary participation by employees and self-determination by the company, with no forced participation through allocation or coercion.
- The funding for this stock ownership plan comes from employees' lawful income, performance bonuses, or other legally permitted means, not exceeding 280 million RMB, with the final total amount subject to actual figures.
- After the establishment of this stock ownership plan, it will be managed by the company itself. The management committee may also delegate a specialized asset management institution to manage the plan as needed.
- The stock for this plan will be sourced from shares repurchased by the company. On June 1, 2026, the company held the 23rd meeting of the 8th Board of Directors, which approved the proposal to repurchase part of the public shares. The stock for this plan will come from the aforementioned repurchased shares. Based on the closing price of the company's stock at 4.28 RMB/share on May 29, 2026, the maximum number of shares that can be purchased under this plan is approximately 65.42 million shares, accounting for about 0.31% of the company's current total share capital. The final number of shares held under this plan will be based on the actual number of shares transferred. Within six months after the shareholders' meeting approves the stock ownership plan, the purchase of the target stock will be completed through non-trading transfers of repurchased treasury shares or other legally permitted methods.
- The total number of shares held by all valid employee stock ownership plans shall not exceed 10% of the company's total share capital, and the total number of shares corresponding to the equity of any single employee in all valid employee stock ownership plans shall not exceed 1% of the company's total share capital. The total number of target shares does not include shares obtained by employees before the company's initial public offering, shares purchased in the secondary market, or shares obtained through equity incentives.
- The duration of this stock ownership plan is 20 years from the date of approval by the shareholders' meeting. Upon expiration, the plan will terminate, but it may be extended upon the proposal of the management committee and approval by the board.
- This stock ownership plan will have a 12-month lock-up period starting from the date the company discloses the announcement of the acquisition and purchase of the target stock, during which trading is prohibited. The management committee will calculate the corresponding target stock quota for holders based on the achievement of key performance indicators of the company and its subsidiaries, as well as individual performance, on May 30, 2027 (the "Target Stock Vesting Date"). The unvested target stock rights (if any) will be reclaimed by the management committee without compensation and sold at a later date before the expiration of the plan, with proceeds returned to the company. Starting from 48 months after the vesting date of the corresponding target stock quota (May 30, 2031, subject to extension if it falls on a non-trading day), the plan may decide whether to sell the corresponding shares based on market conditions or transfer the shares non-traditionally to the holders' accounts, provided that the Shenzhen Stock Exchange and the registration and settlement company systems support it.