Announcement on Equity Incentive Plan and Connected Transaction of Subsidiary
The company and the board of directors guarantee the authenticity, accuracy, and completeness of the information disclosed, and do not contain any false records, misleading statements, or major omissions.
Tongxing Environmental Protection Technology Co., Ltd. (hereinafter referred to as "the Company" or "Tongxing Technology") held the second meeting of the Sixth Board of Directors on July 23, 2026, and reviewed and approved the "Proposal on the Equity Incentive Plan and Connected Transaction of the Subsidiary" (hereinafter referred to as "this Incentive Plan"), agreeing that the subsidiary Tongxing Haosheng (Yibin) New Energy Technology Co., Ltd. (hereinafter referred to as "Tongxing Haosheng") will implement an equity incentive plan. The details are as follows:
I. Overview of the Subsidiary's Equity Incentive Plan
- Basic Situation
To fully mobilize the subjective initiative of the core management team of the Company and Tongxing Haosheng, enhance market competitiveness, attract and retain outstanding talents, and strengthen the sense of responsibility of core employees for the sustained and healthy development of Tongxing Haosheng, Tongxing Haosheng plans to implement an employee stock option incentive plan.
The incentive targets of this incentive plan plan to subscribe for 10 million options through a limited partnership enterprise (hereinafter referred to as "Shareholding Platform" or "Partnership Enterprise") to be established by the Company in the future. Each option corresponds to 1 RMB of registered capital of Tongxing Haosheng. Among them, 2.45 million options will be granted initially, and 7.55 million options will be reserved for granting to specific personnel within 12 months after the initial grant of this incentive plan. The initial incentive targets and their option shares are as follows: Shen Bobo 1 million shares, Lu Wenbin 500,000 shares, and 4 other core employees 950,000 shares. The above personnel have no relationship with the actual controller of the Company and its related parties.
- Connected Relationship
Among the incentive targets of this plan, Mr. Shen Bobo, an employee representative director of the Company, and Mr. Lu Wenbin, Deputy General Manager and Chief Engineer of the Company, plan to participate in this incentive plan by subscribing for the property shares of the Shareholding Platform. According to the "Shenzhen Stock Exchange Stock Listing Rules" and other relevant regulations, this transaction constitutes a connected transaction. Except for the above two individuals, the other initial incentive targets have no connected relationship with the Company as stipulated by the "Shenzhen Stock Exchange Stock Listing Rules" and other relevant regulations.
- Deliberation Procedures
The Company held the second meeting of the Sixth Board of Directors on July 23, 2026, and reviewed and approved the "Proposal on the Equity Incentive Plan and Connected Transaction of the Subsidiary," agreeing that the subsidiary Tongxing Haosheng will implement the equity incentive plan. At the same time, the Board of Directors authorized the Company and the management of Tongxing Haosheng to be responsible for the specific implementation of this equity incentive plan, and the authorization period shall be until all relevant matters are completed. Connected director Shen Bobo recused himself from voting. The Remuneration and Nomination Committee and the Independent Directors' Special Meeting of the Sixth Board of Directors reviewed and approved this matter. The incentive plan grants Mr. Shen Bobo, a connected party, 1 million options and Mr. Lu Wenbin, a connected party, 500,000 options. The exercise price of the options in this incentive plan is RMB 1 per option. According to the "Shenzhen Stock Exchange Stock Listing Rules" and other relevant regulations, this proposal does not need to be submitted to the shareholders' meeting for deliberation.
II. Basic Information of Connected Parties