Board Approves Issuance of 8,800,000 Employee Stock Options

The company’s board of directors resolved on May 13, 2026 to issue employee stock options totaling 8,800,000 units. Each option unit entitles the holder to subscribe for one common share, and the total number of new shares to be issued upon exercise is 8,800,000 shares. The options may be issued in one or multiple tranches within two years from the effective date of the regulatory filing. The actual issuance date is authorized to be determined by the chairperson. Eligible optionees are full-time and part-time employees of the company and its domestic or overseas subsidiaries who are employed before the eligibility record date, which will be determined by the chairperson. The actual eligible employees and number of options granted will be determined based on the company’s operating results, the employee’s rank, job scope, performance evaluation, past and expected overall contribution, special contribution, development potential and other appropriate factors. Grants to directors or managerial officers must first be approved by the remuneration committee; grants to other employees must first be approved by the audit committee, and then submitted to the board for approval. The exercise price will be the closing price of the company’s common shares on the issuance date of the employee stock options. If the closing price is lower than par value, the par value of the common shares will be used as the exercise price. The options have a term of 10 years from the issuance date. Any unexercised options after expiry will be deemed waived. The options may not be transferred, pledged, gifted or otherwise disposed of, except where statutory heirs acquire the rights upon the death of an optionee. The options may be exercised in stages after three full years from the grant date: up to 30% after three years, up to 70% after four years, and up to 100% after five years. Within the scope permitted by law, the board may adjust or amend the vesting periods and vesting ratios for each issuance. If an optionee resigns, retires, takes unpaid leave, dies, suffers occupational injury resulting in disability or death, or transfers to a domestic or overseas subsidiary, the options will be handled in accordance with the plan. Upon resignation, vested options may be exercised within three months from the resignation date, while unvested options will be deemed waived. Upon retirement, vested options must be exercised within one year from the retirement date. In the event of ordinary death, statutory heirs may exercise vested options within two years from the date of death. In the event of occupational injury resulting in disability or death, all granted options may be exercisable under special rules, subject to the three-year minimum period and the option term. Options for which rights are waived will be cancelled by the company and will not be reissued. The options will be fulfilled through the issuance of new common shares. The exercise price will be adjusted according to the formulas set out in the plan in the event of changes in common shares, changes in par value, cash dividends, capital reductions and other specified circumstances. To exercise options, optionees must submit the company’s exercise request form and pay the subscription amount. Once payment is made, the exercise and payment may not be revoked; failure to pay by the deadline will be deemed a waiver. After confirming receipt of payment, the company or its stock agent will record the subscribed shares in the shareholder register and deliver the new shares through book-entry transfer within five business days. The common shares issued upon exercise will carry the same rights and obligations as the company’s existing common shares. The plan must be approved by at least two-thirds of the directors present at a board meeting attended by at least two-thirds of all directors, and by more than half of the attending directors, and will take effect after regulatory filing becomes effective. If there is any inconsistency or conflict between the Chinese and English versions of the plan, the Chinese version shall prevail and be binding. Other matters to be specified: none.