Announcement by Gongda Electronics Co., Ltd. on the First Grant of Stock Options under the 2026 Stock Option Incentive Plan

Important Content Reminder:

1. First authorization date of stock options: June 4, 2026;
2. Number of stock options granted: 3.2 million;
3. Number of recipients: 78;
4. Exercise price of stock options: RMB 25.59 per option (adjusted).

In accordance with the conditions set forth in the "Gongda Electronics Co., Ltd. 2026 Stock Option Incentive Plan (Draft)" (hereinafter referred to as the "Incentive Plan (Draft)" or "this Incentive Plan"), and based on the authorization from the 2025 annual general meeting of shareholders, Gongda Electronics Co., Ltd. (hereinafter referred to as the "Company") convened the 20th meeting of the sixth board of directors on June 4, 2026, to review and approve the proposal regarding the first grant of stock options under the 2026 Stock Option Incentive Plan. The board decided to set June 4, 2026, as the first authorization date for this incentive plan, granting 3.2 million stock options to 78 eligible participants at a price of RMB 25.59 per option. The relevant matters are explained as follows:

I. Approval Procedures for the Incentive Plan

1. On April 27, 2026, the Company held the 19th meeting of the sixth board of directors, which reviewed and approved the proposals regarding the "2026 Stock Option Incentive Plan (Draft)" and its summary, the "Implementation Assessment Management Measures for the 2026 Stock Option Incentive Plan," and the proposal to authorize the board to handle matters related to the 2026 Stock Option Incentive Plan. These proposals were approved by the sixth board of directors' remuneration and assessment committee at its sixth meeting.
2. From April 27, 2026, to May 7, 2026, the Company publicly announced the names and positions of the proposed recipients of the stock options in its internal BPM system. During the announcement period, the remuneration and assessment committee of the board ensured the authenticity, accuracy, and completeness of the disclosed information, with no false records, misleading statements, or significant omissions.
3. On May 8, 2026, the remuneration and assessment committee of the board disclosed the review opinions and public announcement regarding the list of recipients for the first grant of stock options under the 2026 Stock Option Incentive Plan.
4. On May 15, 2026, the Company held the 2025 annual general meeting, which reviewed and approved the proposals regarding the "2026 Stock Option Incentive Plan (Draft)" and its summary, the "Implementation Assessment Management Measures for the 2026 Stock Option Incentive Plan," and the proposal to authorize the board to handle matters related to the 2026 Stock Option Incentive Plan. On the same day, the Company announced the "Self-Inspection Report on Insider Trading of Company Stock by Insiders and Recipients of the 2026 Stock Option Incentive Plan" (Announcement No. 2026-035).
5. On June 2, 2026, the remuneration and assessment committee of the board held its seventh meeting, which reviewed and approved the proposals regarding the adjustment of the exercise price for the 2024 and 2026 stock option incentive plans and the proposal for the first grant of stock options under the 2026 Stock Option Incentive Plan.
6. On June 4, 2026, the Company held the 20th meeting of the sixth board of directors, which reviewed and approved the proposals regarding the adjustment of the exercise price for the 2024 and 2026 stock option incentive plans and the proposal for the first grant of stock options under the 2026 Stock Option Incentive Plan. The remuneration and assessment committee of the board verified the above matters and issued verification opinions.