Directory
Definitions 2
Part I Declarations 4
Part II Main Text 6
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Eligibility of the Company to Implement the Incentive Plan 6
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Legality and Compliance of the Incentive Plan Contents 7
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Legality and Compliance of the Incentive Plan Implementation Procedures 22
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Information Disclosure of the Incentive Plan 24
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The Company Has Not Provided Financial Assistance to Incentive Participants 24
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Impact of the Incentive Plan on the Company and All Shareholders' Interests 24
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Recusal of Directors Who Are Proposed Incentive Participants or Related Parties 25
Part III Conclusion 26
Definitions
In this legal opinion, unless the context otherwise requires, the following abbreviations have the following meanings:
| Abbreviation | Definition |
|---|---|
| DeHeng or this Firm | DeHeng Law Offices (Wuxi) |
| The Company, Company, Yifan Transmission | Wuxi Jiangnan Yifan Power Transmission Technology Co., Ltd. |
| Incentive Plan (Draft) / This Incentive Plan | Wuxi Jiangnan Yifan Power Transmission Technology Co., Ltd. 2026 Restricted Stock Incentive Plan (Draft) |
| Restricted Stock, Type II Restricted Stock | Company stock obtained and registered in stages by eligible participants upon meeting corresponding vesting conditions |
| Incentive Participant | Directors, senior management, core business (technical) backbone personnel, and other employees deemed necessary by the Board of Directors to be incentivized under this plan |
| Grant Date | The date on which the Company grants restricted stock to participants; must be a trading day |
| Grant Price | The price at which the Company grants each share of restricted stock to participants |
| Validity Period | The period from the date of grant until all restricted stock granted to participants is vested or lapses |
| Vesting | The act of the listed company registering shares to the participant's account after Type II Restricted Stock participants meet the benefit conditions |
| Vesting Conditions | The benefit conditions that participants must meet to obtain incentive shares under the Type II Restricted Stock Incentive Plan |
| Vesting Date | The date on which shares are registered after participants meet the benefit conditions; must be a trading day |
| SZSE / Exchange | Shenzhen Stock Exchange |
| CSRC | China Securities Regulatory Commission |
| Registration Agency | China Securities Depository and Clearing Corporation Limited, Shenzhen Branch |
| Remuneration and Appraisal Committee | The Remuneration and Appraisal Committee of the Company's Board of Directors |
| Company Law | Company Law of the People's Republic of China |
| Securities Law | Securities Law of the People's Republic of China |
| Administrative Measures | Administrative Measures on Share Incentives of Listed Companies |
| Listing Rules | Rules Governing the Listing of Stocks on the ChiNext Market of the Shenzhen Stock Exchange |
| Regulatory Guidelines No. 1 | Guidelines No. 1 for Self-Regulation of Listed Companies on the ChiNext Market of the Shenzhen Stock Exchange - Business Handling |
| Articles of Association | Articles of Association of Wuxi Jiangnan Yifan Power Transmission Technology Co., Ltd. |
| Yuan, Ten Thousand Yuan | Renminbi Yuan, Ten Thousand Yuan, unless otherwise specified |
| This Legal Opinion | Legal Opinion of DeHeng Law Offices (Wuxi) on the 2026 Restricted Stock Incentive Plan (Draft) of Wuxi Jiangnan Yifan Power Transmission Technology Co., Ltd. |
Note: Unless otherwise specified, all figures in this legal opinion are rounded to two decimal places. Any discrepancies between the total and the sum of individual items are due to rounding.