Zhonghe Shangda Aviation Material Co., Ltd. 2026 Restricted Stock Incentive Plan (Draft) Summary

Stock Abbreviation: Shangda Shares Stock Code: 301522

Zhonghe Shangda Aviation Material Co., Ltd. 2026 Restricted Stock Incentive Plan (Draft) Summary

Zhonghe Shangda Aviation Material Co., Ltd. June 2026

Declaration

The Company and all directors guarantee that this incentive plan and its summary do not contain any false records, misleading statements, or major omissions, and assume individual and joint legal liability for their authenticity, accuracy, and completeness.

All incentive targets of the Company promise that if the Company's information disclosure documents contain false records, misleading statements, or major omissions, resulting in non-compliance with the conditions for granting or exercising rights, the incentive targets will return all benefits obtained from this incentive plan to the Company after the relevant information disclosure documents are confirmed to contain false records, misleading statements, or major omissions.

Special Notice

1. This incentive plan is 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 Stocks 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, and other relevant regulations.

2. The incentive tool adopted in this incentive plan is restricted stock (Type II restricted stock). The source of the shares is the Company's A-share common stock issued by Zhonghe Shangda Aviation Material Co., Ltd. (hereinafter referred to as the "Company") to the incentive targets.

Incentive targets who meet the grant conditions of this incentive plan will, upon satisfying the corresponding vesting conditions and arrangements, obtain the Company's A-share common stock in batches during the vesting period at the grant price. Such shares will be registered with the Shenzhen Branch of China Securities Depository and Clearing Corporation Limited. Before vesting, the restricted stocks granted to the incentive targets do not carry shareholder rights, and the aforementioned restricted stocks may not be transferred, used for guarantees, or used to repay debts.

1. The number of restricted stocks proposed to be granted under this incentive plan is 2.529 million shares, accounting for approximately 0.68% of the Company's total share capital at the time of the announcement of this incentive plan draft. This grant is a one-time grant with no reserved interests.

As of the date of the announcement of this incentive plan draft, the total number of underlying shares involved in all of the Company's equity incentive plans within the validity period does not exceed 20.00% of the Company's total share capital at the time of the announcement of this incentive plan draft. The cumulative number of the Company's shares granted to any single incentive target through all equity incentive plans within the validity period does not exceed 1.00% of the Company's total share capital at the time of the announcement of this incentive plan draft.

1. The number of incentive targets for the initial grant of this incentive plan does not exceed 58 people, including directors, senior management, and other core employees of the Company.

2. The grant price of the restricted stocks under this incentive plan is 14.41 yuan/share. From the date of the announcement of this incentive plan draft to the completion of the registration of the restricted stock vesting by the incentive targets, if the Company undergoes capital reserve capitalization, stock dividend distribution, share split or consolidation, allotment, or dividend payment, the grant price and/or the number of restricted stocks granted/vested will be adjusted accordingly.

3. The validity period of this incentive plan starts from the date of the initial grant of restricted stocks and ends on the date when all restricted stocks granted to the incentive targets are vested or invalidated, with a maximum duration of no more than 60 months.