Statement
The Company and the entire Board of Directors guarantee that the content of this employee stock ownership plan (draft) is true, accurate, and complete, and that there are no false records, misleading statements, or major omissions.
Risk Warning
I. The 2026 Employee Stock Ownership Plan of Rongsheng Petrochemical Co., Ltd. (hereinafter referred to as "Rongsheng Petrochemical," "the Company," "this Company," or "the Listed Company") (hereinafter referred to as "this Employee Stock Ownership Plan" or "Employee Stock Ownership Plan") requires approval from the Company's shareholders' meeting before implementation. Whether this Employee Stock Ownership Plan can be approved by the Company's shareholders' meeting is uncertain.
II. After the establishment of this Employee Stock Ownership Plan, it will be managed by the Company itself or entrusted to a professional institution with asset management qualifications. However, it is uncertain whether the actual management scale can reach the planned scale and objectives.
III. The specific sources of funds, contribution amounts, and implementation plans for this Employee Stock Ownership Plan are preliminary results, and whether they can be implemented is uncertain.
IV. If employees' subscription funds are low, this Employee Stock Ownership Plan faces the risk of not being established. If employees' contributions are insufficient, this Employee Stock Ownership Plan faces the risk of its scale being lower than anticipated.
V. The Company will disclose relevant progress in accordance with regulations. Investors are advised to make prudent decisions and pay attention to investment risks.
Special Instructions
I. This Employee Stock Ownership Plan is formulated by Rongsheng Petrochemical 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 Pilot Implementation of Employee Stock Ownership Plans by Listed Companies," and other relevant laws, administrative regulations, departmental rules, normative documents, and the "Articles of Association of Rongsheng Petrochemical Co., Ltd."
II. The highest internal management authority of this Employee Stock Ownership Plan is the Shareholders' Meeting. A Management Committee will be established, and the Management Committee will be authorized to act as the daily management body of the Employee Stock Ownership Plan, representing the holders of the Employee Stock Ownership Plan to exercise shareholder rights other than those of the Company's shareholders' meeting, thereby effectively protecting the legitimate rights and interests of the holders of the Employee Stock Ownership Plan. The Company has adopted appropriate risk prevention and isolation measures to effectively protect the legitimate rights and interests of the holders of the Employee Stock Ownership Plan.
III. The scope of participants in this Employee Stock Ownership Plan includes employees of the Company and its subsidiaries (within the scope of consolidated financial statements, hereinafter referred to as the same). Participants must meet one of the following criteria: (1) Directors and senior management of the Company; (2) Directors, supervisors, and senior management of subsidiaries; (3) Core backbone employees and other key personnel of the Company and its subsidiaries; (4) Outstanding on-the-job employees of the Company and its subsidiaries, referring to employees employed by the Company and its subsidiaries who have signed labor contracts or employment contracts and receive remuneration; (5) Other personnel as determined by the Board of Directors. The total number of participants shall not exceed 4,000. The specific number of participants will be determined based on the actual contributions made by employees.
Before the establishment of the Management Committee for this Employee Stock Ownership Plan, the Remuneration and Assessment Committee authorized by the Company's Board of Directors may adjust the list of employees participating in the stock ownership plan and their allocations based on changes in employees, etc. This Employee Stock Ownership Plan follows the principles of the Company's independent decision-making and employees' voluntary participation, and there is no situation where the Company forces participation through allocation or mandatory distribution.