Meeting Overview - The first meeting of the 2025 Employee Stock Ownership Plan (ESOP) was held on July 11, 2025, with 113 attendees representing 7,098,000 shares, which is 100% of the total shares in the plan [1] Resolutions Passed - The establishment of the 2025 ESOP Management Committee was approved to ensure the orderly implementation of the plan and protect the rights of the holders [2] - The election of Mr. Qu Xianwei, Mr. Zhou Wei, and Mr. Wu Yuanjie as members of the Management Committee was approved, with their terms aligned with the duration of the ESOP [2] - The Management Committee was authorized to handle all matters related to the ESOP, including equity distribution and refinancing matters, with a stipulation for the sale of shares within 12 months post-lock-up period [3]

Group 1 - The company announced a 2025 employee stock ownership plan covering up to 358 individuals, including directors, supervisors, executives, and core employees, with a total of no more than 10.392177 million shares, representing 1.23% of the current total share capital [1][2] - The employee purchase price is set at 15.78 RMB per share, with total self-funded amounts not exceeding 163.9886 million RMB [1][2] - The plan aims to attract and retain talent, enhance operational efficiency, and drive performance growth through a tiered unlocking mechanism and dual assessment criteria [2] Group 2 - The company has achieved a domestic market share of 40%-50% in the new energy sector, with significant order increases for its coaxial reducers due to their core technological advantages [3] - By the end of 2024, the company has established a production capacity of 6.5 million sets of new energy vehicle drive gears [3] - The company is accelerating the construction of its Hungary base to meet European market demands and enhance its influence through localized production [3] Group 3 - The company is recognized as a leader in precision drive systems and is expanding globally while developing intelligent drive mechanisms and robotic joint businesses [4] - Revenue projections for 2025-2027 are 10.47 billion, 12.47 billion, and 14.96 billion RMB, with net profits of 1.3 billion, 1.52 billion, and 1.89 billion RMB respectively [4] - The expected earnings per share (EPS) for the same period are 1.54, 1.79, and 2.23 RMB, with corresponding price-to-earnings (PE) ratios of 20, 17, and 14 times [4]

Core Viewpoint - The brokerage firms have been actively repurchasing shares since 2025, with significant actions taken in response to market fluctuations, signaling strong confidence in maintaining company value and shareholder rights [1][8]. Group 1: Share Repurchase Activities - Guotai Junan completed its A-share repurchase plan on July 9, 2025, buying back 67.52 million shares, which is 0.3830% of its total share capital, for a total payment of 1.211 billion yuan [1][3]. - The repurchase wave began in April 2025, driven by the Central Huijin's market stabilization measures, leading to over 240 listed companies announcing repurchase plans, with a month-on-month increase of over 5 times [1][8]. - Other brokerages like Dongfang Securities and Zhongtai Securities have also announced their repurchase plans, with Dongfang repurchasing 26.70 million shares for 250 million yuan, representing 0.31% of its total share capital [3][5]. Group 2: Repurchase Objectives and Market Impact - The primary purpose of the repurchase actions by Guotai Junan, Dongfang Securities, and others is to maintain company value and shareholder rights, reflecting their recognition of long-term investment value [8]. - Zhongtai Securities has indicated that its repurchased shares will be used to reduce registered capital, which can enhance earnings per share and overall company value [8]. - The repurchase actions have positively impacted stock performance, with Guotai Junan's stock price increasing by 19% over three months, and other brokerages also showing gains since their repurchase announcements [10].

Core Points - The Supervisory Board of Anhui Zhonghuan Environmental Protection Technology Co., Ltd. has reviewed and approved the company's 2025 Employee Stock Ownership Plan (ESOP) [1][2] - The plan is in compliance with relevant laws and regulations, including the Company Law, Securities Law, and specific guidelines for implementing employee stock ownership plans [1][2] - The Supervisory Board confirmed that there are no coercive measures for employee participation, nor any financial assistance provided to employees for the ESOP [1][2] Summary by Sections - The Supervisory Board conducted a thorough discussion and found the procedures for the ESOP to be legal and effective [1] - The ESOP aims to align the interests of the company, shareholders, and employees, enhancing the employee incentive mechanism and improving corporate governance [2] - Due to the absence of a sufficient number of non-related supervisors for a valid resolution, the Supervisory Board decided to submit the proposal directly to the company's first extraordinary general meeting of shareholders in 2025 [2]

Core Viewpoint - The company is implementing a 2025 Employee Stock Ownership Plan (ESOP) to enhance employee engagement, improve corporate governance, and promote long-term sustainable development [1][2]. Group 1: Implementation Principles - The ESOP will be executed in compliance with relevant laws and regulations, ensuring accurate and timely information disclosure [2]. - Participation in the ESOP is voluntary, and employees bear their own risks without any forced allocation [2][3]. Group 2: Participants - Eligible participants include employees who recognize the company's culture, meet performance standards, and have made significant contributions [3]. - The total number of participants in the ESOP will not exceed 70, with adjustments made based on actual circumstances [3][4]. Group 3: Funding and Stock Sources - The funding for the ESOP will come from employees' legal salaries and self-raised funds, with a total amount not exceeding 15.6 million yuan [4]. - The stock for the ESOP will be sourced from shares repurchased by the company, with a maximum scale of 4 million shares, accounting for 0.94% of the total share capital [4][5]. Group 4: Lock-up and Performance Assessment - The ESOP will have a lock-up period starting from the transfer of shares, with conditions for unlocking based on performance metrics [5][6]. - The performance assessment for the year 2025 aims for a minimum growth rate of 5% in net profit compared to 2024 [7][8]. Group 5: Management and Governance - The ESOP will be managed by a committee elected by the participants, ensuring the protection of their rights and interests [10][11]. - The management committee is responsible for daily operations and must adhere to the decisions made in the participants' meetings [10][12]. Group 6: Changes and Termination - Any changes to the ESOP require approval from more than half of the participants and must be submitted to the board for review [17]. - The ESOP can be terminated early under specific conditions, including the completion of the lock-up period and the return of funds to participants [18][19].

Core Points - The employee stock ownership plan (ESOP) aims to enhance employee responsibility, attract and retain talent, and promote the company's long-term development [7][8][18] - The plan is subject to approval by the company's shareholders and involves a maximum of 200 participants, including directors, supervisors, senior management, and core personnel [2][4][6] Summary by Sections Plan Overview - The ESOP is established in accordance with relevant laws and regulations, including the Company Law and Securities Law [2] - The plan allows voluntary participation without any forced allocation [2][8] Stock and Funding Sources - The stock for the ESOP will come from the company's repurchased A-shares, totaling up to 79,616,675 shares, which is 2.645% of the total share capital [3][11][13] - The purchase price for the stock is set at 6.75 RMB per share, which is 50% of the average trading price on the day before the plan's announcement [3][16][18] - The funding for the plan will not exceed 538 million RMB, with a financing ratio of no more than 1:1 between employee contributions and borrowed funds [4][15] Duration and Unlocking Mechanism - The ESOP has a duration of 48 months, with stock unlocking occurring in two phases after 12 and 24 months, each allowing a maximum of 50% unlocking [5][20] - Performance assessment indicators will be set at both company and individual levels to determine the unlocking of shares [20][22] Management and Governance - The highest management authority for the ESOP is the holders' meeting, which elects a management committee responsible for daily operations [28][30] - Any changes to the plan require approval from more than 50% of the holders' meeting [24][30]

Group 1 - The company has developed the draft of the 4th employee stock ownership plan in compliance with relevant laws and regulations, including the Company Law and Securities Law of the People's Republic of China [1][2] - The board confirms that the implementation of the employee stock ownership plan does not harm the interests of the company and all shareholders, and there are no forced participation scenarios [1][2] - The eligibility criteria for participants in the employee stock ownership plan meet the requirements set forth in the relevant regulations, ensuring the legality and validity of the participants' qualifications [1]

Meeting Information - The company will hold its first extraordinary general meeting of shareholders for 2025 on July 29, 2025, at 14:00 [1] - Shareholders registered by the close of trading on July 21, 2025, are entitled to attend the meeting and can appoint proxies to vote [2] - The meeting will include a proposal to authorize the board to handle matters related to the 2025 employee stock ownership plan, which has been approved by the board and supervisory board [2] Voting Procedures - Shareholders can vote through the Shenzhen Stock Exchange trading system and the internet voting system on July 29, 2025, with specific time slots for voting [1][5] - Registration for attendance requires specific documentation depending on whether the shareholder is a legal entity or an individual [3] - Proxy voting is allowed, and the proxy must present an authorization letter along with identification [5][6] Additional Information - The company will separately count votes from minority investors on proposals affecting their interests [2] - Detailed voting procedures and requirements for network voting are provided in the attachments [6][7]

Group 1 - The company held its seventh meeting of the seventh supervisory board on July 10, 2025, via communication methods, with all procedures complying with relevant laws and regulations [1] - The supervisory board approved the employee stock ownership plan to enhance the interest-sharing mechanism among employees and shareholders, improve corporate governance, and boost employee motivation and creativity for sustainable development [1][2] - The employee stock ownership plan draft and its summary were developed in accordance with various legal and regulatory guidelines and will be submitted for approval at the company's first extraordinary general meeting of shareholders in 2025 [2][3] Group 2 - The supervisory board's voting results for the employee stock ownership plan showed unanimous support, with 3 votes in favor and no opposition or abstentions [1][2] - The company has established a management approach for the 2025 employee stock ownership plan to ensure its proper implementation [2][3]

Core Viewpoint - The company has developed a draft for the 2025 Employee Stock Ownership Plan (ESOP) in compliance with relevant laws and regulations, aiming to enhance employee motivation and the company's competitiveness [1][2]. Group 1: Compliance and Legal Framework - The company confirms that it meets the qualifications for implementing the employee stock ownership plan as per the Company Law and Securities Law of the People's Republic of China [1]. - There are no circumstances that would harm the interests of the company and all shareholders, and participation in the ESOP is not mandatory for employees [1]. - The company has ensured that related directors abstained from voting on the ESOP proposal in accordance with legal and regulatory requirements [1]. Group 2: Objectives and Benefits - The implementation of the ESOP is expected to improve the company's incentive and restraint mechanisms, thereby increasing employee cohesion and overall competitiveness [2]. - The plan aims to stimulate employee enthusiasm and creativity, promoting the company's long-term, sustainable, and healthy development [2].