Stock Abbreviation: Joyoung Stock
Stock Code: 002242
Joyoung Co., Ltd.
2026 Employee Stock Ownership Plan (Revised Draft)
July 2026
Statement
The Company and all members of the Board of Directors guarantee that the contents of this Employee Stock Ownership Plan and its summary are true, accurate, and complete, and contain no false records, misleading statements, or major omissions.
Risk Warning
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The specific funding sources, investment amounts, projected scale, and implementation plan for the Joyoung Co., Ltd. (hereinafter "Joyoung," "the Company," or "this Company") 2026 Employee Stock Ownership Plan (hereinafter "this Employee Stock Ownership Plan") are preliminary results; there is uncertainty regarding whether they can be successfully implemented.
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If employee subscription funds are low, there is a risk that this Employee Stock Ownership Plan may not be established; if employee subscription shares are insufficient, there is a risk that the plan will fall below the projected scale.
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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 Company will subsequently disclose relevant progress in accordance with regulations. Investors are advised to make decisions cautiously and be aware of investment risks.
Special Notice
The terminology used in this section is consistent with the "Definitions" section.
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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, administrative regulations, rules, normative documents, and the Articles of Association.
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This Employee Stock Ownership Plan follows the principles of legality, compliance, voluntary participation, and risk assumption, and there are no instances of forced participation or mandatory allocation.
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The scope of participants for this Employee Stock Ownership Plan includes the Company's (including subsidiaries, the same below) senior management and core backbone employees (hereinafter "Holders"). The total number of people at the initial establishment shall not exceed 100. The specific number of participants and the list will be determined based on actual employee payment status. The Management Committee may adjust the list of employees and allocation ratios based on subscription payments and personnel changes.
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The funding sources for this Employee Stock Ownership Plan are legal employee compensation, self-raised funds, social financing, and other methods permitted by laws and regulations. There is no situation where the Company provides financial assistance to holders or guarantees their loans, nor are there any arrangements for third parties to provide rewards, funding, subsidies, or guarantees for employees participating in this plan. The maximum total funds to be raised for this Employee Stock Ownership Plan at initial establishment is 200 million RMB, using "shares" as the subscription unit, with each share being 1 RMB. The specific amount will be determined based on actual capital contributions.
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The source of shares for this Employee Stock Ownership Plan is the Company's A-share common stock acquired through the secondary market (including but not limited to competitive trading and block trading). Based on the closing price of 10.09 RMB/share on March 25, 2026, it is estimated that this Employee Stock Ownership Plan can hold no more than 19.8217 million shares of the underlying stock, accounting for no more than 2.60% of the Company's total share capital. Given the uncertainty regarding the actual purchase price and scale, the final number of shares held shall be subject to actual execution.