Lancy Co., Ltd. The Fourth Employee Stock Ownership Plan (Draft) (Revised)

Risk Disclosure

1. The Fourth Employee Stock Ownership Plan (Draft) (hereinafter referred to as the "Plan," "Employee Stock Ownership Plan," or "Fourth Employee Stock Ownership Plan") of Lancy Co., Ltd. (hereinafter referred to as "Lancy," "the Company," or "this Company") is subject to approval by the Company's general meeting of shareholders. There is uncertainty regarding whether this draft will be approved.

2. The funding sources, share sources, participants, estimated scale, and implementation plan for this Employee Stock Ownership Plan are preliminary results. There is uncertainty regarding whether the implementation can be completed.

3. Employees participate in this Employee Stock Ownership Plan based on the principles of compliance with laws and regulations, voluntary participation, and risk assumption. If the subscription amount by employees is low, there is a risk that the plan may not be established or may fall below the expected scale.

4. The descriptions of company performance assessment indicators in this Employee Stock Ownership Plan do not represent performance forecasts for the Company, nor do they constitute performance commitments.

5. 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

1. The Fourth Employee Stock Ownership Plan is formulated by the Company 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 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.

2. This Employee Stock Ownership Plan follows the principles of compliance with laws and regulations, voluntary participation, and risk assumption. There are no circumstances of forcing employees to participate through apportionment or mandatory allocation.

3. The scope of participants in this Employee Stock Ownership Plan includes directors, senior management, and core personnel of the Company (including subsidiaries). The total number of employees participating in this plan shall not exceed 149 (excluding those for reserved shares). This includes a total of 9 directors and senior management members. The specific number of participants will be determined based on actual employee payments. During the duration of this plan, the Company's Board of Directors and the Management Committee of the Employee Stock Ownership Plan have the right to adjust (including increase or decrease) the actual shares held by participants based on their performance assessment results. They may also adjust the number of participants, the list of employees, and the allocated shares based on personnel changes and the Company's development.

4. The source of shares for this Employee Stock Ownership Plan is the transfer of no more than 9.42 million shares of Lancy stock sold by the Company's third employee stock ownership plan through bulk trading in the secondary market, accounting for 2.13% of the Company's total share capital on the date of the announcement of the draft. After the implementation of this plan, the total number of shares held by all effective employee stock ownership plans of the Company shall not exceed 10% of the total share capital, and the total number of shares corresponding to the shares held by a single employee shall not exceed 1% of the total share capital. The total number of underlying shares held by the employee stock ownership plan does not include shares obtained by holders before the Company's initial public offering, shares purchased independently in the secondary market, or shares obtained through equity incentive plans.