HANGZHOU TOKA(SH:688571) Zheng Quan Zhi Xing·2025-08-21 16:36Core Viewpoint - The company has decided to cancel a portion of the 2023 restricted stock incentive plan, specifically 86,300 shares that were granted but not yet vested, due to reasons including employee departures and performance issues [1][6][7]. Decision Process and Disclosure - The company held a board meeting on August 20, 2025, where the decision to cancel the shares was approved, following the procedures outlined in the incentive plan draft and authorized by the shareholders [1][4]. - Prior meetings included discussions and approvals regarding the incentive plan and its management, with independent directors providing their consent [2][3][5]. Reasons for Cancellation - The cancellation of shares was due to one employee leaving the company and another retiring, resulting in 70,000 shares being rendered non-vested [6]. - Additionally, three employees did not meet performance standards, leading to the cancellation of 16,300 shares based on their performance evaluations [6]. Impact on the Company - The cancellation of these shares is not expected to have a significant impact on the company's financial status or operational results, and it does not harm the interests of the company or its shareholders [7]. Committee Opinions - The Board's Compensation and Assessment Committee agreed that the cancellation aligns with relevant laws and regulations, confirming that the process was legal and did not harm shareholder interests [7][8]. Legal Opinion - The legal firm involved confirmed that all necessary approvals for the adjustments and cancellations have been obtained, and the actions taken are in compliance with applicable laws and the company's regulations [8].