Explanation Regarding the Adjustment of Stock Option Exercise Prices and Restricted Stock Repurchase Prices
Reason for Adjustment
The company completed its 2024 annual dividend distribution, with a cash dividend of RMB 4.80 per 10 shares (tax inclusive), no bonus shares, and no capital reserve to bonus share conversion. The company completed its 2025 annual dividend distribution, with a cash dividend of RMB 6.456411 per 10 shares (tax inclusive), no bonus shares, and no capital reserve to bonus share conversion.
In light of the completed dividend distributions, and in accordance with the relevant provisions of the company's current incentive plan, the board of directors shall adjust the stock option exercise prices and restricted stock repurchase prices.
Basis and Results of Adjustment
1. Adjustment of Stock Option Exercise Prices
According to the provisions of the incentive plan, if there is a capital reserve to bonus share conversion, stock dividend, stock split, rights issue, reverse stock split, or dividend distribution before the exercise period, the exercise price of stock options shall be adjusted accordingly. The adjustment method for dividend distribution is as follows:
P = P0 - V. Where: P0 is the exercise price before adjustment; V is the dividend per share; P is the exercise price after adjustment. After the dividend adjustment, P must be greater than 1.
The exercise price of stock options granted under this incentive plan (including initial and reserved grants) is adjusted to:
Adjusted exercise price P = P0 - V = 35.25 - 0.6456411 ≈ 34.60 RMB/share