[Chart: Handler Logo]
Xuzhou Handler Special Vehicle Co., Ltd.
Third Employee Stock Ownership Plan
(Draft) Summary
July 2026
Statement
The Company and all members of the Board of Directors guarantee that this incentive plan and its summary contain no false records, misleading statements, or major omissions, and assume individual and joint legal liability for their truthfulness, accuracy, and completeness.
Risk Warning
(1) The Third Employee Stock Ownership Plan of Xuzhou Handler Special Vehicle Co., Ltd. (hereinafter referred to as "Handler" or the "Company") 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.
(2) After the establishment of this employee stock ownership plan, it will be managed by the Company itself, but there is uncertainty as to whether it can reach the planned scale and targets.
(3) The specific funding sources, investment amounts, and implementation plans for this employee stock ownership plan are preliminary results; there is uncertainty as to whether they can be fully implemented.
(4) If the funds subscribed by employees are low, there is a risk that this employee stock ownership plan will not be established.
(5) Stock prices are affected by various complex factors, including the Company's operating performance, macroeconomic cycles, international/domestic 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.
(6) The descriptions of company performance assessment indicators in this employee stock ownership plan do not represent the Company's performance forecasts, nor do they constitute performance commitments.
(7) Investors are advised to make decisions cautiously and pay attention to investment risks.
Special Notice
The terminology used in this section is consistent with the "Definitions" section.
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The "Xuzhou Handler Special Vehicle Co., Ltd. Third Employee Stock Ownership Plan (Draft)" is prepared 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," and the "Shenzhen Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 2 — Standardized Operation of Companies Listed on the ChiNext Market," as well as other relevant laws, administrative regulations, rules, normative documents, and the "Articles of Association."
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To support the Company's medium-to-long-term development strategy and to establish and improve a mechanism for sharing benefits between employees and shareholders, the Company has launched this employee stock ownership plan.
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This employee stock ownership plan follows the principles of legality, compliance, voluntary participation, and risk-bearing, and there is no situation of forced participation or apportionment.
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The participants in this employee stock ownership plan are core management, technical, and business personnel (hereinafter referred to as "Holders") working at the Company's holding subsidiary, Hubei Ya'andun Fire Technology Co., Ltd. (hereinafter referred to as "Ya'andun"). The total number of participants shall not exceed 150, and the specific number and list will be determined based on actual employee payments. The Company's directors and senior management do not participate in this plan. The Board of Directors authorizes the Management Committee to adjust the list of employees and allocation ratios based on subscription payments, personnel changes, and performance assessments.
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The source of shares for this employee stock ownership plan is the Company's A-share common stock already repurchased in the Company's dedicated securities account for repurchases. This plan will acquire the repurchased shares through non-transactional transfers or other methods permitted by laws and regulations after approval by the general meeting of shareholders. The scale of this plan shall not exceed 5.10 million shares, accounting for approximately 0.51% of the Company's total share capital of 1,009.0436 million shares as of the announcement date of the draft. The final share amount and ratio are subject to the actual subscription by the Holders.