Announcement on the Completion of Repurchase and Cancellation of Certain Restricted Shares under the 2024 Restricted Stock Incentive Plan

Stock Code: 002088 Stock Abbreviation: Luyang Energy-Saving Announcement No.: 2026-030

Shandong Luyang Energy-Saving Materials Co., Ltd. Announcement on the Completion of Repurchase and Cancellation of Certain Restricted Shares under the 2024 Restricted Stock Incentive Plan

Special Notice:

1. Shandong Luyang Energy-Saving Materials Co., Ltd. (hereinafter referred to as the "Company") has completed the repurchase and cancellation of 3,491,400 restricted shares granted under the 2024 Restricted Stock Incentive Plan, representing 0.68% of the Company's total share capital of 513,122,586 shares prior to the cancellation. A total of 118 incentive participants are involved.

2. The total amount of funds used by the Company to pay for the repurchase of these restricted shares is 19,443,450.46 RMB, sourced from the Company's own funds.

3. As of the disclosure date of this announcement, the Company has completed the repurchase and cancellation procedures for the aforementioned restricted shares at the Shenzhen Branch of China Securities Depository and Clearing Corporation Limited. Following the completion of this repurchase and cancellation, the Company's total share capital has changed from 513,122,586 shares to 509,631,186 shares.

I. Decision-making Procedures and Approval Status of the 2024 Restricted Stock Incentive Plan

1. On January 17, 2024, the 2024 First Meeting of the Remuneration and Appraisal Committee of the Board of Directors reviewed and approved the "Proposal on the 2024 Restricted Stock Incentive Plan (Draft) and its Summary" and the "Proposal on the Management Measures for the Implementation and Appraisal of the 2024 Restricted Stock Incentive Plan."

2. On January 17, 2024, the 11th Board of Directors held its 4th (Extraordinary) Meeting, where it reviewed and approved the "Proposal on the 2024 Restricted Stock Incentive Plan (Draft) and its Summary," the "Proposal on the Management Measures for the Implementation and Appraisal of the 2024 Restricted Stock Incentive Plan," and the "Proposal on Requesting the General Meeting of Shareholders to Authorize the Board of Directors to Handle Matters Related to the 2024 Restricted Stock Incentive Plan," among other related proposals.

3. On January 17, 2024, the 11th Board of Supervisors held its 4th (Extraordinary) Meeting, where it reviewed and approved the "Proposal on the 2024 Restricted Stock Incentive Plan (Draft) and its Summary," the "Proposal on the Management Measures for the Implementation and Appraisal of the 2024 Restricted Stock Incentive Plan," and the "Proposal on Verifying the List of Participants for the Initial Grant under the 2024 Restricted Stock Incentive Plan."

4. On January 18, 2024, the Company disclosed the "Announcement of Shandong Luyang Energy-Saving Materials Co., Ltd. on Independent Directors Soliciting Voting Rights Publicly." Independent Director Mr. Hu Mingji publicly solicited voting rights from all shareholders regarding the relevant proposals of the Incentive Plan to be reviewed at the Company's 2024 First Extraordinary General Meeting of Shareholders.

5. From January 19, 2024, to January 28, 2024, the Company publicized the names and positions of the participants for the initial grant under the Incentive Plan internally through the company website, internal OA system, and internal bulletin boards for a period of no less than 10 days. During the publicity period, the Board of Supervisors received feedback from the labor union and some employees. On February 1, 2024, the Board of Supervisors informed the Board of Directors in writing of the relevant situation and requested the Board of Directors to provide an explanation.

On February 5, 2024, the 11th Board of Directors held its 5th (Extraordinary) Meeting, where it reviewed and approved the "Explanation on Employee Feedback Regarding the 2024 Restricted Stock Incentive Plan," providing an explanation for the feedback received. On February 6, 2024, the 11th Board of Supervisors held its 5th (Extraordinary) Meeting, where it reviewed and approved the "Explanation on the Publicity Situation and Verification Opinions Regarding the List of Participants for the Initial Grant under the 2024 Restricted Stock Incentive Plan."