Summary of the Fourth Employee Stock Ownership Plan (Draft) (Revised Draft)

Statement

The Company and all members of the Board of Directors guarantee that the content of this employee stock ownership plan is true, accurate, and complete, and contains no false records, misleading statements, or major omissions.

Risk Warning

1. The employee stock ownership plan will be implemented after being approved by the Company's shareholders' meeting, and whether this employee stock ownership plan can be approved by the Company's shareholders' meeting is uncertain.
2. The specific sources of funds, contribution ratios, and implementation plans for this employee stock ownership plan are preliminary results, and whether they can be successfully implemented is uncertain.
3. If the employee subscription funds are low, there is a risk that this employee stock ownership plan cannot be established; if the employee subscription funds are insufficient, there is a risk that this employee stock ownership plan will be lower than the expected scale.
4. The Company will disclose relevant progress in accordance with regulations in the future. Investors are kindly requested to make cautious decisions and pay attention to investment risks.

Special Notice

1. The Fourth Employee Stock Ownership Plan (Draft) of Zhejiang Yasha Decoration Co., Ltd. (hereinafter referred to as "Yasha Shares" or "the Company") is formulated in accordance with the "Company Law of the People's Republic of China," "Securities Law of the People's Republic of China," "Guiding Opinions on the Pilot Implementation of Employee Stock Ownership Plans for Listed Companies," "Shenzhen Stock Exchange Listed Company Information Disclosure Guide No. 4 - Employee Stock Ownership Plan," and other relevant laws, administrative regulations, rules, normative documents, and the "Articles of Association of Zhejiang Yasha Decoration Co., Ltd."
2. The source of shares for this employee stock ownership plan is the shares repurchased by the Company in its dedicated repurchase account.
3. The total number of employees participating in this employee stock ownership plan does not exceed 21, of which 8 are directors, supervisors, and senior management personnel, and no more than 13 are other employees. The specific number of participants will be determined based on the actual contributions of the employees.
4. The total amount of funds to be raised for this employee stock ownership plan does not exceed 61.4196 million yuan. The funds are sourced from employees' legal remuneration and self-raised funds permitted by laws and administrative regulations. The Company does not provide financial assistance or loan guarantees to employees participating in this employee stock ownership plan, nor does it draw incentive funds from the Company.
5. The number of underlying shares involved in this employee stock ownership plan does not exceed 16.92 million shares, accounting for approximately 1.26% of the Company's total share capital before the board of directors meeting to deliberate on this plan (draft). This employee stock ownership plan will acquire the Company's shares held in the dedicated repurchase securities account through non-trading transfer and other legally permissible methods within 6 months after the shareholders' meeting approves it. The final purchase of the underlying shares is still uncertain, and the final number of shares held will be subject to the actual implementation. The cumulative number of shares involved does not exceed 10% of the Company's total share capital, and the number of underlying shares corresponding to the shares held by any single holder does not exceed 1% of the Company's total share capital. The total number of shares held by the employee stock ownership plan does not include shares obtained by employees before the company's initial public offering, shares purchased in the secondary market, or shares obtained through equity incentives.
6. The purchase price of the repurchased shares for this employee stock ownership plan is 3.63 yuan/share.
7. The duration of this employee stock ownership plan shall not exceed 72 months, calculated from the date when the Company announces the last batch of underlying shares transferred to the name of this employee stock ownership plan. The underlying shares obtained by this employee stock ownership plan can be unlocked 12 months after the Company announces the last batch of underlying shares transferred to the name of this employee stock ownership plan, and the lock-up period is 12 months.
8. After the Board of Directors deliberates and approves this employee stock ownership plan, the Company will issue a notice to convene a shareholders' meeting to deliberate on this employee stock ownership plan, which can only be implemented after being approved by the shareholders' meeting.
9. The shareholders' meeting to deliberate on this employee stock ownership plan will adopt a combination of on-site and online voting. The Company will provide an online voting platform through the Shenzhen Stock Exchange trading system and the internet voting system for the Company's shareholders. Shareholders can exercise their voting rights through the above systems during the online voting period.
10. The financial, accounting treatment, and tax issues related to the implementation of this employee stock ownership plan by the Company shall be handled in accordance with relevant financial regulations, accounting standards, and tax regulations. The individual income tax payable by the holders due to the implementation of this employee stock ownership plan shall be borne by the individuals themselves.
11. After the implementation of this employee stock ownership plan, it will not cause the Company's equity distribution to fail to meet the conditions for listing.