Core Viewpoint - Shenzhen Huada Zhi Zao Technology Co., Ltd. is revising its 2024 employee stock ownership plan to enhance employee motivation and align with the company's strategic direction [5][11]. Group 1: Approval and Authorization - The company has obtained necessary approvals and authorizations for the revision of the employee stock ownership plan, complying with relevant regulations [5][11]. - The plan's related proposals have been submitted for review at the company's shareholders' meeting [11]. Group 2: Reasons and Main Content of the Revision - The revision aims to adjust the company's performance assessment targets to stimulate employee engagement and support sustainable business development [8][11]. - The main content of the revision includes changes to the performance assessment requirements, with specific targets set for the years 2024 and 2025 based on the company's revenue from 2023, which was 2.709 billion [8][9]. Group 3: Performance Assessment Targets - The performance assessment for the employee stock ownership plan will be based on revenue growth rates, with specific targets set for each assessment period [9][10]. - The first unlock period for 2024 has a trigger value of 15% and a target value of 20%, while the second unlock period for 2025 has a trigger value of 32% and a target value of 44% [8][9].

Core Viewpoint - The company has revised its employee stock ownership plan for 2023-2025, extending it to 2023-2026 and adjusting the distribution batches and proportions to enhance implementation and compliance with regulatory guidelines [1][4][5] Summary by Sections Employee Stock Ownership Plan Overview - The company established the employee stock ownership plan in meetings held on April 26, 2023, and May 19, 2023, with the first two batches already implemented in 2023 and 2024 [1][2] Revision Details - The plan's distribution has been adjusted from three batches (2023-2025) to four batches (2023-2026), with the distribution proportions revised accordingly [2][3] - The first batch in 2023 allocated up to 17.5 million shares at a subscription price of 9.50 CNY per share, while the second batch in 2024 will allocate up to 30 million shares at a price of 5.00 CNY per share [2] Procedural Changes - The approval process for the employee stock ownership plan has been updated to align with new regulatory requirements, changing the announcement procedures and terminology from "shareholders' meeting" to "shareholders' assembly" [3][4] Impact of Revisions - The revisions are expected to facilitate the ongoing implementation of the employee stock ownership plan and comply with relevant laws and regulations, ensuring no harm to the interests of the company and its shareholders [4][5] Legal Opinions - Legal counsel has confirmed that the revisions and the third batch distribution have received necessary approvals and comply with applicable laws and regulations [5]