Sangfor Technologies Inc. (hereinafter referred to as the "Company") has formulated these measures to further improve its corporate governance structure, strengthen its incentive and constraint mechanism, form a balanced value distribution system, and fully mobilize employee enthusiasm. This ensures the steady improvement of company performance and the realization of its development strategy and business objectives. The Company intends to implement the 2026 Restricted Stock Incentive Plan (hereinafter referred to as the "Restricted Stock Incentive Plan" or "this Restricted Stock Incentive Plan").
To ensure the smooth implementation of the Restricted Stock Incentive Plan, these measures are formulated in accordance with the Company Law of the People's Republic of China, the Securities Law of the People's Republic of China, the Administrative Measures for Equity Incentives of Listed Companies, the Rules Governing the Listing of Securities on the ChiNext Market of the Shenzhen Stock Exchange, the Guidelines No. 1 for Self-Regulation of Listed Companies on the ChiNext Market—Business Handling, the Articles of Association of Sangfor Technologies Inc., and relevant laws, regulations, and normative documents, combined with the actual situation of the Company.
I. Purpose of Assessment
To further improve the corporate governance structure, establish and perfect the incentive and constraint mechanism, ensure the smooth implementation of the Restricted Stock Incentive Plan, maximize the effect of equity incentives, and thereby ensure the realization of the Company's development strategy and business objectives.
II. Assessment Principles
The assessment and evaluation must adhere to the principles of justice, openness, and fairness. It shall be conducted strictly in accordance with these measures and the performance of the assessment targets to ensure that the incentive plan is closely integrated with the work performance and contributions of the incentive targets, thereby improving the overall performance of the Company and maximizing the interests of the Company and all shareholders.
III. Scope of Assessment
These measures apply to all incentive targets participating in the Company's Restricted Stock Incentive Plan.
IV. Assessment Institutions
(I) The Remuneration and Appraisal Committee of the Board of Directors is responsible for leading and organizing the assessment work and is responsible for assessing the incentive targets.
(II) The Board of Directors is responsible for the final review of the assessment results.
V. Assessment Indicators and Standards
The restricted shares granted for the first time and those reserved will be vested in two periods. The vesting ratio for each batch of the restricted shares granted for the first time is shown in the table below: