Chapter 1 General Principles
Article 1
To standardize the implementation of the second phase employee stock ownership plan (hereinafter referred to as "this stock ownership plan" or "employee stock ownership plan") of Fujian Heng'erdan New Materials Co., Ltd. (hereinafter referred to as "the Company"), these management measures are formulated in accordance with the Company Law of the People's Republic of China (hereinafter referred to as "the Company Law"), the Securities Law of the People's Republic of China (hereinafter referred to as "the Securities Law"), the Guidelines for the Pilot Implementation of Employee Stock Ownership Plans by Listed Companies (hereinafter referred to as "the Employee Stock Ownership Plan Guidelines"), and the Self-Regulatory Guidelines No. 2 for Listed Companies on the Shenzhen Stock Exchange - Standardized Operations of Growth Enterprise Market Listed Companies (hereinafter referred to as "the Standardized Operations for GEM Listed Companies"), as well as other relevant laws, administrative regulations, rules, normative documents, and the provisions of the Articles of Association.
Chapter 2 Formulation of the Employee Stock Ownership Plan
Article 2 Basic Principles of the Employee Stock Ownership Plan
(1) Compliance Principle
The Company shall implement the employee stock ownership plan in strict accordance with the provisions of laws and administrative regulations, and shall disclose information truthfully, accurately, completely, and in a timely manner. No one shall use the employee stock ownership plan to engage in insider trading, market manipulation, or other securities fraud.
(2) Voluntary Participation Principle
The implementation of the employee stock ownership plan shall follow the principle of voluntary participation by employees, and the Company shall not force employees to participate through allocation or compulsory distribution.
(3) Risk-Bearing Principle
Holders of the employee stock ownership plan shall bear their own profits and losses, and the risks shall be borne by them, enjoying equal rights with other investors.