NWM(SH:603700) Zheng Quan Zhi Xing·2025-08-29 17:02Core Viewpoint - The legal opinion letter addresses the adjustment of the exercise price and the cancellation of certain stock options under the 2024 stock option incentive plan of Ningbo Water Meter (Group) Co., Ltd. [1][4] Group 1: Adjustment of Exercise Price - The exercise price of stock options will be adjusted from 11.41 yuan to 11.21 yuan due to the implementation of a cash dividend of 0.2 yuan per share [7][8]. - The adjustment method follows the provisions of the incentive plan, ensuring that the adjusted exercise price does not fall below the par value of the stock [8]. Group 2: Cancellation of Stock Options - A total of 938,750 stock options will be canceled, including 72,000 options from four individuals who have left the company and 866,750 options due to the failure to meet performance targets for the first exercise period [6][10]. - The performance targets for the first exercise period required a revenue growth rate of at least 8% based on the average revenue of 2022 and 2023, which was not achieved [9][10]. Group 3: Compliance and Authorization - The adjustments and cancellations have received the necessary approvals and authorizations as per the relevant laws and regulations, including the Company Law and the Securities Law [6][10]. - The company is required to fulfill its information disclosure obligations and handle the cancellation procedures for the stock options [10].