Guoguang Electric Corporation Announcement on the Expiration of Lock-up Period and Early Termination of the Third Phase Employee Stock Ownership Plan Stock Code: 002045 Stock Abbreviation: Guoguang Electric Serial Number: 2026-10 The Company and all members of the Board of Directors guarantee the truthfulness, accuracy, and completeness of the information disclosed in this announcement, and there are no false records, misleading statements, or major omissions. Guoguang Electric Corporation (hereinafter referred to as the "Company") held the 24th meeting of the 11th Board of Directors on March 16, 2026, and deliberated and approved the "Proposal on Early Termination of the Third Phase Employee Stock Ownership Plan." In accordance with the "Guiding Opinions on the Pilot Implementation of Employee Stock Ownership Plans by Listed Companies," the "Third Phase Employee Stock Ownership Plan (Revised Draft)" of the Company, and considering the Company's actual situation, the Company has decided to terminate the third phase employee stock ownership plan early. The relevant matters are hereby announced as follows: I. Basic情况 of the Third Phase Employee Stock Ownership Plan
- Approval of the Third Phase Employee Stock Ownership Plan The Company held the 18th meeting of the 10th Board of Directors on April 4, 2023, and the 3rd Extraordinary General Meeting of Shareholders on April 21, 2023, deliberating and approving the "Proposal on the 'Draft of the Third Phase Employee Stock Ownership Plan of Guoguang Electric Corporation' and its Summary," the "Proposal on the 'Management Measures for the Third Phase Employee Stock Ownership Plan of Guoguang Electric Corporation'," and the "Proposal on Authorizing the Board of Directors to Handle Matters Related to the Company's Third Phase Employee Stock Ownership Plan." The Company held the 14th meeting of the 11th Board of Directors on January 25, 2025, and the 1st Extraordinary General Meeting of Shareholders on February 11, 2025, deliberating and approving the "Proposal on the 'Revised Draft of the Third Phase Employee Stock Ownership Plan of Guoguang Electric Corporation' and its Summary," and the "Proposal on the 'Revised Draft of the Management Measures for the Third Phase Employee Stock Ownership Plan of Guoguang Electric Corporation'." For specific details, please refer to the relevant announcements disclosed by the Company on the Juchao Information Network (http://www.cninfo.com.cn), China Securities Journal, Securities Times, and Securities Daily.
- Transfer of Shares under the Third Phase Employee Stock Ownership Plan On March 18, 2025, the Company received the "Confirmation Letter of Securities Transfer Registration" issued by Shenzhen Branch of China Securities Depository and Clearing Corporation Limited. The 10,980,996 shares of the Company held in the "Repurchase Special Securities Account of Guoguang Electric Corporation" were transferred non-traditionally to the "Third Phase Employee Stock Ownership Plan Account of Guoguang Electric Corporation" on March 17, 2025. The number of transferred shares was 10,980,996, accounting for 1.95% of the Company's total share capital. The transfer price was 14.93 yuan/share, totaling 163,946,270.28 yuan.
- Lock-up Period of the Third Phase Employee Stock Ownership Plan According to the "Revised Draft of the Third Phase Employee Stock Ownership Plan of Guoguang Electric Corporation" and the "Revised Draft of the Management Measures for the Third Phase Employee Stock Ownership Plan of Guoguang Electric Corporation," the lock-up period for the shares obtained by this employee stock ownership plan is 12 months from the date of the last transfer of the underlying shares to the employee stock ownership plan. The lock-up period is 12 months, which is from March 17, 2025, to March 16, 2026. As of the date of this announcement, the lock-up period of the third phase employee stock ownership plan has expired. After the expiration of the lock-up period, the third phase employee stock ownership plan will simultaneously assess the company-level performance and individual performance to determine whether the participants meet the unlock conditions. II. Reasons for Early Termination of the Third Phase Employee Stock Ownership Plan In accordance with the "Revised Draft of the Third Phase Employee Stock Ownership Plan of Guoguang Electric Corporation" and the "Revised Draft of the Management Measures for the Third Phase Employee Stock Ownership Plan of Guoguang Electric Corporation," the company-level performance and individual performance targets set for the third phase employee stock ownership plan are as follows: (1) Company-Level Performance Assessment: The assessment year for unlocking the underlying shares held by this employee stock ownership plan is 2025. The company must simultaneously achieve the following performance assessment targets for the shares to be unlocked: | Assessment Year | Revenue Assessment | Gross Profit Assessment | |---|---|---| | 2025 | Based on the average revenue of the preceding three years (2022-2024), the revenue growth in 2025 shall not be less than 20%. | Based on the average gross profit of the preceding three years (2022-2024), the gross profit growth in 2025 shall not be less than 20%. | (2) Individual Performance Assessment: This employee stock ownership plan will assess the participants' behavior/performance during the term of the stock ownership plan based on the company's performance appraisal, and the assessment year is also 2025. The participants' 2025 individual performance assessment results will be divided into five tiers: S, A, B, C, and D. Provided that the company's performance targets are met, participants whose 2025 individual performance assessment results are B or above can unlock all underlying shares corresponding to their holdings in the stock ownership plan. If the participants' 2025 individual performance assessment results are below B, all underlying shares corresponding to their holdings in the stock ownership plan cannot be unlocked. In view of the changes in the market environment and the "2025 Performance Forecast" disclosed by the Company on January 27, 2026, the third phase employee stock ownership plan is unlikely to achieve its intended incentive objectives and effects. Considering the wishes of the participants in this employee stock ownership plan and the cost of capital occupation, in order to better protect the interests of the Company, shareholders, and employees, the Board of Directors, in accordance with the "Company Law," "Securities Law," "Guiding Opinions on the Pilot Implementation of Employee Stock Ownership Plans by Listed Companies," and the Company's "Third Phase Employee Stock Ownership Plan (Revised Draft)" and other relevant regulations, after careful consideration, has decided to terminate the third phase employee stock ownership plan early. III. Approval Procedures for Early Termination of the Third Phase Employee Stock Ownership Plan On March 16, 2026, the holders' meeting of the third phase employee stock ownership plan was held and deliberated and approved the "Proposal on Early Termination of the Third Phase Employee Stock Ownership Plan." On March 16, 2026, the Audit Committee and the Remuneration and Assessment Committee of the 11th Board of Directors of the Company held meetings and deliberated and approved the "Proposal on Early Termination of the Third Phase Employee Stock Ownership Plan." On March 16, 2026, the 24th meeting of the 11th Board of Directors of the Company was held and deliberated and approved the "Proposal on Early Termination of the Third Phase Employee Stock Ownership Plan." The early termination of the third phase employee stock ownership plan was decided. Directors Lu Hongda, Wang Jie, and Yang Liujiang, who are related parties, recused themselves from voting. In accordance with the relevant provisions of this employee stock ownership plan, the Company's early termination of this employee stock ownership plan has obtained authorization from the Company's general meeting of shareholders and does not require submission to the Company's general meeting of shareholders for deliberation. IV. Termination and Subsequent Arrangements of the Third Phase Employee Stock Ownership Plan In accordance with the relevant provisions of the third phase employee stock ownership plan, after deliberation and approval by the employee stock ownership plan holders' meeting and the Company's Board of Directors, the third phase employee stock ownership plan has been terminated early. The Management Committee of the third phase employee stock ownership plan will, under the authorization of the employee stock ownership plan holders' meeting, sell the shares held by the third phase employee stock ownership plan at an opportune time. The proceeds from the sale shall belong to the Company. The Company will, within the amount of these proceeds, refund the participants' original capital contributions and bank deposit interest at the corresponding period. V. Impact of Early Termination of the Third Phase Employee Stock Ownership Plan on the Company The early termination of the third phase employee stock ownership plan by the Company complies with the "Company Law," "Securities Law," "Guiding Opinions on the Pilot Implementation of Employee Stock Ownership Plans by Listed Companies," "Shenzhen Stock Exchange Listed Company Self-Regulatory Guidelines No. 1 - Normative Operation of Main Board Listed Companies," and other relevant laws, regulations, normative documents, and the "Third Phase Employee Stock Ownership Plan (Revised Draft)" of the Company. The termination of this employee stock ownership plan by the Company does not harm the interests of the Company and all shareholders, will not have an adverse impact on the Company's development strategy, operating plan, or financial situation and operating results, nor will it affect the diligence and dedication of the Company's management and core employees. In the future, the Company will, based on its development needs, regulatory policies, and changes in the market environment, select appropriate methods to strive to establish a long-term effective incentive mechanism, attract and retain outstanding talents, fully mobilize the enthusiasm and creativity of core employees, and promote the healthy development of the Company. Hereby announced. Guoguang Electric Corporation Board of Directors March 17, 2026