Fujian Yong'an Forestry (Group) Co., Ltd. (hereinafter referred to as "the Company") and all members of the Board of Directors guarantee that the information disclosed is true, accurate, and complete, without false records, misleading statements, or significant omissions.
On June 3, 2026, the Company held the 27th meeting of the 10th Board of Directors, where it reviewed and approved the proposal on the repurchase and cancellation of shares from certain performance compensation obligors and the proposal to authorize the Board of Directors to handle matters related to the repurchase and cancellation of compensation shares. The relevant matters are announced as follows:
1. Major Asset Restructuring in 2015
On April 7, 2015, the Company held the 13th meeting of the 7th Board of Directors and on May 8, 2015, held the second extraordinary general meeting of shareholders in 2015, where it reviewed and approved proposals related to major asset restructuring, including the issuance of shares and cash payment to purchase 100% equity of Fujian Senyuan Co., Ltd. (now renamed "Fujian Senyuan Furniture Co., Ltd.," hereinafter referred to as "Senyuan Furniture") from transaction counterparties such as Su Jiaxu. This major asset restructuring was approved by the China Securities Regulatory Commission on September 8, 2015.
2. Performance Commitment
In 2015, the transaction counterparties Su Jiaxu, Li Jianqiang, Fujian Guxin Investment Co., Ltd. (hereinafter referred to as "Guxin Investment"), and Fujian Nan'an Xiongchuang Investment Center (Limited Partnership) (hereinafter referred to as "Nan'an Xiongchuang") (collectively referred to as "Performance Committers") committed to the performance of the target assets from 2015 to 2017. The Company signed a profit compensation agreement with the Performance Committers, stipulating that Senyuan Furniture must achieve specific profit targets from 2015 to 2017; if these targets were not met, the Performance Committers would compensate the Company.
On April 28, 2019, Deloitte Touche Tohmatsu Certified Public Accountants issued a report on the performance commitment fulfillment and related compensation arrangements. According to this report, the Performance Committers were required to compensate the Company. On April 30, 2020, the Company disclosed the number of shares to be compensated by the Performance Committers in its 2019 annual report.