[Image: Fulin Precision logo]
Fulin Precision Co., Ltd.
FULIN PRECISION CO., LTD. (No. 37, Phoenix Middle Road, High-end Manufacturing Industrial Park, Mianyang City, Sichuan Province)
Plan for Issuance of Shares to Specific Targets (Revised Draft)
June 2026
Company Statement
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The Company and all members of the Board of Directors guarantee that the contents of this plan do not contain any false records, misleading statements, or major omissions, and assume individual and joint liability for the authenticity, accuracy, and completeness of its contents.
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This plan is prepared in accordance with the requirements of laws, regulations, departmental rules, and normative documents such as the Company Law, the Securities Law, and the Administrative Measures for Registration.
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Upon completion of this issuance of shares to specific targets, the Company shall be solely responsible for changes in its operations and earnings; investors shall be solely responsible for investment risks arising from this issuance.
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The matters described in this plan do not represent a substantive judgment, confirmation, or approval by the approval authorities regarding the matters related to this issuance. The effectiveness and completion of the matters described herein are subject to the approval and registration of the relevant approval authorities.
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If investors have any questions, they should consult their stock brokers, lawyers, professional accountants, or other professional advisors.
Special Notice
The terms or abbreviations used in this section have the same meanings as those defined in the "Definitions" section of this plan.
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In accordance with the provisions of the Company Law, the Securities Law, the Administrative Measures for Registration, and other relevant laws, regulations, departmental rules, and normative documents, the Board of Directors, after careful self-examination and demonstration of the actual situation and related matters, believes that the Company meets the various conditions for issuing shares to specific targets.
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The matters related to this issuance of shares to specific targets have been deliberated and approved at the 30th and 34th meetings of the 5th Board of Directors and the 2nd Extraordinary General Meeting of Shareholders in 2026, and can only be implemented after being reviewed and approved by the Shenzhen Stock Exchange and the China Securities Regulatory Commission (CSRC) makes a decision to agree to registration.
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The target of this issuance is CATL, which intends to subscribe for the full amount in cash in a single transaction. Upon completion of this issuance, CATL will become a shareholder holding more than 5% of the Company's shares; therefore, CATL constitutes a related party of the Company, and this issuance constitutes a related-party transaction. CATL has signed the "Share Subscription Agreement" and the "Supplementary Agreement to the Share Subscription Agreement" with the Company.
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The pricing benchmark date for this issuance of shares to specific targets is the first day of the issuance period.
The issuance price shall not be lower than 80% of the average trading price of the Company's shares for the 20 trading days prior to the pricing benchmark date (excluding the pricing benchmark date). The average trading price for the 20 trading days prior to the pricing benchmark date = total trading volume of shares for the 20 trading days prior to the pricing benchmark date / total trading volume of shares for the 20 trading days prior to the pricing benchmark date, rounded up to two decimal places. If the Company experiences ex-rights or ex-dividend matters such as dividend distribution, bonus shares, or capitalization of capital reserves between the pricing benchmark date and the issuance date, the issuance price will be adjusted accordingly. During the period from the pricing benchmark date to the issuance date, if the CSRC or the Shenzhen Stock Exchange makes policy adjustments to the issuance price, the issuance price for this issuance to specific targets will be adjusted accordingly.