Stock Code: 301120 Stock Abbreviation: Xinhuadu Special Electric Announcement No.: 2026-029 Xinhuadu Special Electric Co., Ltd. Announcement on the Adjustment of the Grant Price of the 2025 Restricted Stock Incentive Plan The Company and all members of the Board of Directors guarantee the truthfulness, accuracy, and completeness of the information disclosed herein, and that there are no false records, misleading statements, or material omissions. Xinhuadu Special Electric Co., Ltd. (hereinafter referred to as the "Company") held the nineteenth meeting of the Fifth Board of Directors on May 8, 2026, and deliberated and passed the "Proposal on Adjusting the Grant Price of the 2025 Restricted Stock Incentive Plan." The relevant matters are hereby explained as follows: I. Relevant Approval Procedures for the Company's 2025 Restricted Stock Incentive Plan
- On April 24, 2025, the Company held the eleventh meeting of the Fifth Board of Directors, which deliberated and passed the "Proposal on the 2025 Restricted Stock Incentive Plan (Draft) and its Summary," the "Proposal on the Management Measures for the Assessment and Management of the 2025 Restricted Stock Incentive Plan," and the "Proposal to Authorize the Board of Directors to Handle Matters Related to the 2025 Restricted Stock Incentive Plan." Independent directors solicited proxy voting rights from all shareholders on the proposals related to this incentive plan. On the same day, the Company held the eighth meeting of the Fifth Board of Supervisors, which deliberated and passed the "Proposal on the 2025 Restricted Stock Incentive Plan (Draft) and its Summary," the "Proposal on the Management Measures for the Assessment and Management of the 2025 Restricted Stock Incentive Plan," and the "Proposal on Verifying the List of Grantees of the 2025 Restricted Stock Incentive Plan."
- From April 26, 2025, to May 8, 2025, the Company publicly disclosed the names and positions of the initial grantees of the incentive plan internally. During the disclosure period, the Board of Supervisors did not receive any objections regarding the proposed initial grantees of the incentive plan. On May 8, 2025, the Company disclosed the "Explanation and Verification Opinion of the Supervisory Board of Xinhuadu Special Electric Co., Ltd. on the Public Disclosure of the List of Initial Grantees of the 2025 Restricted Stock Incentive Plan."
- The Company conducted a self-inspection of trading of the Company's shares by insiders who had knowledge of the inside information of this incentive plan within six months prior to the public disclosure of the "2025 Restricted Stock Incentive Plan (Draft)," i.e., from October 24, 2024, to April 24, 2025. On May 16, 2025, the Company disclosed the "Self-Inspection Report on Trading of Company Shares by Insiders with Knowledge of Inside Information Regarding the 2025 Restricted Stock Incentive Plan."
- On May 16, 2025, the Company held its 2024 Annual General Meeting of Shareholders, which deliberated and passed the "Proposal on the 2025 Restricted Stock Incent