2026 Employee Stock Ownership Plan (Draft) Summary

Stock Code: 002753 Stock Abbreviation: Yongdong Shares

Stock Code: 127059 Stock Abbreviation: Yongdong Convertible Bond 2

Shanxi Yongdong Chemical Industry Co., Ltd.

2026 Employee Stock Ownership Plan

(Draft) Summary

June 2026

Statement

The Company and all members of the Board of Directors guarantee that this Employee Stock Ownership Plan and its summary do not contain any false records, misleading statements, or major omissions, and they shall bear individual and joint liability for the authenticity, accuracy, and completeness of its contents.

Risk Warning

1. The Shanxi Yongdong Chemical Industry Co., Ltd. (hereinafter referred to as "Yongdong Shares," "the Company," or "the Listed Company") 2026 Employee Stock Ownership Plan (hereinafter referred to as "this Employee Stock Ownership Plan") can only be implemented after approval by the Company's general meeting of shareholders. There is uncertainty as to whether this plan will be approved by the general meeting of shareholders.

2. The specific sources of funds, contribution ratios, and implementation plans for this Employee Stock Ownership Plan are preliminary results, and there is uncertainty as to whether they can be successfully implemented.

3. If the employee subscription amount is low, there is a risk that this Employee Stock Ownership Plan may not be established; if the employee subscription amount is insufficient, there is a risk that this Employee Stock Ownership Plan will be lower than the expected scale.

4. The Company's stock price is affected by various complex factors such as the Company's operating performance, macroeconomic cycles, domestic and international political and economic situations, and investor sentiment. Therefore, stock trading is an investment activity with certain risks, and investors should be fully prepared for this.

5. The description of the Company's performance assessment indicators in this Employee Stock Ownership Plan does not represent the Company's performance forecast, nor does it constitute a performance commitment.

6. The Company will disclose relevant progress in a timely manner in accordance with regulations. Investors are advised to make decisions cautiously and pay attention to investment risks.

Special Notice

The terms used in this section are consistent with those in the "Definitions" section.

1. The "Shanxi Yongdong Chemical Industry Co., Ltd. 2026 Employee Stock Ownership Plan (Draft)" 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 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, regulations, rules, normative documents, and the "Articles of Association of Shanxi Yongdong Chemical Industry Co., Ltd."

2. This Employee Stock Ownership Plan follows the principles of compliance with the law, voluntary participation, and risk-bearing, and there is no forced participation by employees such as apportionment or mandatory allocation.

3. The participants of this Employee Stock Ownership Plan are the Company's directors (excluding independent directors), senior management, middle management, and core technical (business) employees (hereinafter referred to as "Holders"). The total number of participants in this Employee Stock Ownership Plan at the initial establishment shall not exceed 61, including 7 directors (excluding independent directors) and senior management. The specific number of participants will be determined based on the actual payment by employees.