Announcement on the First Grant of Stock Options to Incentive Recipients

Securities Code: 002388

Securities Abbreviation: XinYa Precision

Announcement No.: 2026-047

XinYa Precision (Zhejiang) Co., Ltd.

Announcement on the First Grant of Stock Options to Incentive Recipients

The Company and all members of the Board of Directors guarantee that the information disclosed is true, accurate, and complete, and that there are no false records, misleading statements, or major omissions.

Key Information Highlights:

● First grant date of stock options: July 20, 2026

● Number of stock options granted for the first time: 18.1991 million, accounting for approximately 3.56% of the company's total share capital of 510.6976 million shares as of the announcement date of the stock option incentive plan draft.

● Exercise price of stock options for the first grant: RMB 5.16 per option.

The conditions for the first grant of stock options under the "2026 Stock Option Incentive Plan (Draft)" (hereinafter referred to as the "Incentive Plan (Draft)" or "this Incentive Plan") of XinYa Precision (Zhejiang) Co., Ltd. (hereinafter referred to as the "Company") have been met. Pursuant to the authorization of the first extraordinary general meeting of shareholders in 2026, the Company convened the second (extraordinary) meeting of the seventh Board of Directors on July 20, 2026. The proposal on the first grant of stock options to incentive recipients was considered and approved. The first grant date was set as July 20, 2026, and 18.1991 million stock options were granted to 82 first-time incentive recipients at a price of RMB 5.16 per option. The relevant matters are hereby explained as follows:

I. Brief Introduction to the Incentive Plan

1. Incentive Tool: Stock options.

2. Source of Shares for this Incentive Plan: The underlying shares involved in this Incentive Plan will be sourced from the Company's A-share ordinary shares issued to incentive recipients or A-share ordinary shares repurchased from the secondary market.

3. Number of Stock Options Granted: This Incentive Plan proposes to grant 22.9814 million stock options to incentive recipients, accounting for 4.50% of the company's total share capital of 510.6976 million shares as of the announcement date of this Incentive Plan. Of this, the first grant is for 18.3852 million stock options, accounting for 80.00% of the total number of options granted under this Incentive Plan, and approximately 3.60% of the company's total share capital as of the announcement date of the Incentive Plan draft. The reserved portion is 4.5962 million stock options, accounting for 20.00% of the total number of options granted under this Incentive Plan, and approximately 0.90% of the company's total share capital as of the announcement date of the Incentive Plan draft.

4. Allocation of Stock Options Granted to Incentive Recipients: The allocation of stock options under this Incentive Plan among incentive recipients is as follows:

Note: 1. Wen Ming and Luo Xinmei served as directors of the Company at the time of the first announcement of the Incentive Plan, and their granted information was listed among directors and senior management in the first announcement. As of the date of this announcement, the aforementioned individuals no longer hold positions as directors or senior management of the Company, and their granted information is now included in the statistics for core management and technical (business) personnel. Wu Pei was a core member of the Company at the time of the first announcement of the Incentive Plan, and his granted information was included in the statistics for core management and technical (business) personnel in the first announcement. As of the date of this announcement, Wu Pei currently serves as a director of the Company, and therefore his granted information is listed separately.

1. The total number of shares of the Company granted to any s