Shandong Zhongrui Industrial Development Co., Ltd. 2026 Employee Stock Ownership Plan (Draft)

Stock Code: 002374 Stock Abbreviation: Zhongrui Shares

Shandong Zhongrui Industrial Development Co., Ltd. 2026 Employee Stock Ownership Plan (Draft)

July 2026

Company Statement

The Company and all members of the Board of Directors guarantee that this Employee Stock Ownership Plan and its summary contain no false records, misleading statements, or major omissions, and assume individual and joint legal liability for the authenticity, accuracy, and completeness of the information provided.

Risk Warning

1. The Shandong Zhongrui Industrial Development Co., Ltd. 2026 Employee Stock Ownership Plan must be approved by the company's shareholders' meeting before it can be implemented. There is uncertainty as to whether this plan will receive approval.

2. The specific funding sources, contribution ratios, and implementation plans for this ESOP are preliminary results. There is uncertainty regarding whether the implementation can be completed.

3. If employee subscription funds are low, there is a risk that this ESOP may not be established. If subscription funds are insufficient, there is a risk that the plan will fall below the expected scale.

4. The company will 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.

1. The "Shandong Zhongrui Industrial Development Co., Ltd. 2026 Employee Stock Ownership Plan (Draft)" (hereinafter referred to as the "Employee Stock Ownership Plan") is formulated by Shandong Zhongrui Industrial Development Co., Ltd. (hereinafter referred to as the "Company" or "Zhongrui Shares") 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 Pilot 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 of Shandong Zhongrui Industrial Development Co., Ltd.

2. This ESOP follows the principles of legality, compliance, voluntary participation, and risk-bearing. There are no instances of forced participation or apportionment.

3. The funding sources for this ESOP are legal employee compensation, self-raised funds, and other methods permitted by law and administrative regulations. The company will not provide financial assistance such as advances, guarantees, or loans to holders in any form.

4. Participants in this ESOP include the company's directors, senior management, and management personnel and key employees working in the company and its subsidiaries. The total number of participants shall not exceed 200, with the specific number determined based on actual circumstances.

5. The underlying shares for this ESOP are A-share common stocks repurchased by the company through its dedicated securities repurchase account.

The scale of this ESOP shall not exceed 10,900,000 shares, accounting for 1.00% of the company's current total share capital (1,085,209,283 shares). The purchase price for the repurchased shares is 3.08 yuan/share, with a planned total fund-raising cap of 33,572,000 yuan. Using "shares" as the subscription unit, each share is 1.00 yuan, and the maximum number of shares for the ESOP is 33,572,000.

The total number of company shares held by all effective employee stock ownership plans of the company does not exceed 10% of the total share capital, and the equity interest held by a single holder does not exceed 1% of the total share capital. The total number of shares held by the ESOP does not include shares obtained by participants before the company's initial public offering, shares purchased independently in the secondary market, or shares obtained through equity incentives.