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Dongguan Mentech Optical & Magnetic Co., Ltd. 2026 Stock Option and Restricted Stock Incentive Plan (Draft) Summary
August 2026
Statement
The Company and all directors and senior management guarantee that this incentive plan and its summary do not contain any false records, misleading statements, or major omissions, and assume individual and joint legal liability for their authenticity, accuracy, and completeness.
Special Notice
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The "Dongguan Mentech Optical & Magnetic Co., Ltd. 2026 Stock Option and Restricted Stock Incentive Plan (Draft)" (hereinafter referred to as the "Incentive Plan") is formulated by Dongguan Mentech Optical & Magnetic Co., Ltd. (hereinafter referred to as the "Company", "we", or "Mentech") in accordance with the Securities Law of the People's Republic of China, the Company Law of the People's Republic of China, the Administrative Measures for Equity Incentives of Listed Companies, the Shenzhen Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 1 — Business Handling, and other relevant laws, regulations, and normative documents, as well as the Articles of Association of Dongguan Mentech Optical & Magnetic Co., Ltd.
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This Incentive Plan consists of two parts: a stock option incentive plan and a restricted stock incentive plan. The source of the shares is the Company's定向 issuance of A-share common stock to the incentive targets.
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The total number of equity interests to be granted under this Incentive Plan is 9.742 million shares, accounting for 4.15% of the Company's total share capital on the date of the announcement of this Incentive Plan. Specifically: 8.755 million shares are to be granted initially, accounting for 3.73% of the total share capital at the time of the draft announcement and 89.87% of the total equity interests granted; 0.987 million shares are reserved, accounting for 0.42% of the total share capital at the time of the draft announcement and 10.13% of the total equity interests granted.
This Incentive Plan includes a stock option incentive plan and a restricted stock incentive plan, detailed as follows:
(1) Stock Option Incentive Plan: 8.222 million units to be granted, accounting for 3.50% of the total share capital at the time of the draft announcement and 84.40% of the total equity interests granted. Specifically: 7.235 million units to be granted initially, accounting for 3.08% of the total share capital at the time of the draft announcement and 88.00% of the total stock options granted; 0.987 million units reserved, accounting for 0.42% of the total share capital at the time of the draft announcement and 12.00% of the total stock options granted.
(2) Restricted Stock Incentive Plan: 1.52 million shares to be granted, accounting for 0.65% of the total share capital at the time of the draft announcement. The restricted stock incentive plan is a one-time grant with no reserved interests.
As of the date of the announcement of this Incentive Plan, the total number of company shares involved in all of the Company's equity incentive plans within their validity period does not exceed 10.00% of the Company's total share capital. The total number of company shares granted to any single incentive target under all equity incentive plans within their validity period does not exceed 1.00% of the Company's total share capital.
- The exercise price for the stock options granted (initial and reserved) under this Incentive Plan is 18.95 yuan/unit, and the grant price for the restricted stock is 11.85 yuan/share.
If the Company undergoes capital reserve capitalization, stock dividend distribution, share split or consolidation, rights issue, or dividend payment between the date of the announcement of this Incentive Plan and the completion of the exercise of stock options/grant of restricted stock by the incentive targets, the exercise price/grant price and the number of shares granted will be adjusted accordingly in accordance with the relevant provisions of this Incentive Plan.