Stock Abbreviation: Sanquan Food
Stock Code: 002216
Sanquan Food Co., Ltd.
2026 Employee Stock Ownership Plan
(Draft)
August 2026
Statement
Sanquan Food Co., Ltd. (hereinafter referred to as "Sanquan Food", "the Company" or "the Company") and its Board of Directors guarantee that this Employee Stock Ownership Plan does not contain any false records, misleading statements, or major omissions, and assume individual and joint legal liability for its authenticity, accuracy, and completeness.
Risk Disclosure
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The Company's 2026 Employee Stock Ownership Plan (hereinafter referred to as "this Employee Stock Ownership Plan") must be approved by the Company's general meeting of shareholders before it can be implemented. There is uncertainty as to whether this plan will be approved.
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After its establishment, this Employee Stock Ownership Plan will be managed by the Company itself, but there is uncertainty as to whether it can reach the planned scale and objectives.
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The specific funding sources, contribution amounts, expected scale, and implementation plans for this Employee Stock Ownership Plan are preliminary results; there is uncertainty as to whether they can be fully implemented.
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If employee contributions are low, there is a risk that this Employee Stock Ownership Plan may not be established; if employee contributions are insufficient, there is a risk that the plan will be smaller than expected.
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Stock prices are influenced by various complex factors, including the Company's operating performance, macroeconomic cycles, international/domestic political and economic situations, and investor sentiment. Therefore, stock trading is an investment activity with certain risks, and investors should be fully prepared for this.
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The performance assessment targets in this draft do not constitute performance forecasts or substantive commitments by the Company to investors. Assumptions and examples are provided solely for illustrative purposes based on certain scenarios and do not serve as performance commitments or guidance. Final operating results will be subject to the audit results of an accounting firm. Investors are advised to make decisions cautiously and be aware of investment risks.
Special Notice
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This Employee Stock Ownership Plan is prepared in accordance with the Company Law of the People's Republic of China, the Securities Law of the People's Republic of China, the Guiding Opinions on the Implementation of Employee Stock Ownership Plans by Listed Companies, the Shenzhen Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 1 — Standardized Operation of Main Board Listed Companies, and other relevant laws, regulations, and the Articles of Association of Sanquan Food Co., Ltd.
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This Employee Stock Ownership Plan follows the principles of legality, compliance, voluntary participation, and risk-bearing, and there is no situation where employees are forced to participate through apportionment or mandatory allocation.
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The scope of participants in this plan includes the Company's (including its subsidiaries) directors (excluding independent directors), senior management, middle management, core technical personnel, and other personnel who meet the conditions stipulated in this draft and are approved by the Board of Directors (hereinafter referred to as "Holders"). The total number of participants shall not exceed 260 (excluding reserved personnel). Shareholders holding more than 5% of the Company's shares, the actual controller, and their parents, spouses, and children are not participating in this plan. The total shares subscribed by directors and senior management shall not exceed 30% of the total shares of this plan. After the subsequent granting of reserved portions, the total shares subscribed by directors and senior management shall not exceed 30% of the total shares of this plan.
After the implementation of this Employee Stock Ownership Plan, the total number of shares held by all effective employee stock ownership plans of Sanquan Food shall not exceed 10% of the total share capital of the Company; the total number of shares corresponding to the equity interests obtained by a single employee shall not exceed 1% of the total share capital of the Company.