2026 Partner Stock Ownership Plan Management Measures
Chapter 1: Formulation of the Employee Stock Ownership Plan
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Basic Principles of the Employee Stock Ownership Plan
(1) Legal Compliance Principle
The company will implement the stock ownership plan in strict accordance with legal and regulatory requirements, ensuring truthful, accurate, complete, and timely information disclosure. No one may use the stock ownership plan for insider trading or market manipulation.
(2) Voluntary Participation Principle
Participation in the stock ownership plan is based on the company's independent decision and employees' voluntary participation; the company cannot force employees to participate through allocation or coercion.
(3) Benefit Sharing Principle
The number of shares actually owned by participants should be strictly linked to the achievement of key performance indicators of the company and its subsidiaries, as well as individual performance, forming a benefit-sharing mechanism among shareholders, the company, and participants.
(4) Risk Bearing Principle
Participants bear their own profits and losses, and risks are shared equally with other investors. -
Participants in the Employee Stock Ownership Plan
The participants in this stock ownership plan are core personnel of the company, including directors, the Chief Financial Officer (CFO), senior vice presidents, and other core senior management personnel. All participants must work for the company or its subsidiaries and receive compensation. -
Sources of Funds and Stocks for the Employee Stock Ownership Plan
(1) Sources of Funds
(1) The funds for this stock ownership plan come from employees' legal income, performance bonuses, or other legally permitted means. The total funding for this plan shall not exceed 280 million yuan.
(2) The company will not provide financial assistance or guarantees for loans to participants, nor will it involve leveraged funds.
(3) There are no arrangements for third parties to provide rewards, subsidies, or guarantees for employees participating in the stock ownership plan.
(2) Sources of Stocks
The stocks 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 stocks for this plan will come from the aforementioned repurchased shares. Based on the closing price of the company's stock at 4.28 yuan per 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 total share capital. The final number of shares held under this plan will be based on the actual number of shares transferred. This plan will acquire the company's stocks within six months after the shareholders' meeting approves the plan, through legal and compliant means such as non-trading transfers. The transfer price for this plan will be based on the actual average repurchase price of the shares, not lower than the par value of the shares, and in principle, not lower than the higher of the following: 50% of the average trading price of the company's stock on the trading day before the plan was announced; or 50% of the average trading price of the company's stock over the previous 20, 60, or 120 trading days. The pricing basis for the stock transfer price is as follows:
(1) It combines the company's operational situation and the goal of strengthening the core team, referencing relevant policies and cases of listed companies, thus forming an effective and feasible plan that matches the company's actual situation.
(2) This stock ownership plan aims to improve the company's governance mechanism, enhance the compensation system, and increase the overall value of the company. Therefore, the pricing principles of this plan align with the company's actual incentive needs, promoting the sustainable and stable development of the company without harming the rights and interests of the company and minority shareholders, demonstrating reasonableness and scientificity.