Core Viewpoint - The company has announced an adjustment to the stock option exercise price as part of its 2021 incentive plan, which has been approved by the board and supervisory committee [1][6][8] Group 1: Approval Process - The adjustment of the stock option exercise price has undergone the necessary approval procedures, including independent opinions from the company's independent directors [1][4][8] - The company held multiple meetings to review and approve various related proposals regarding the incentive plan [2][3][5] Group 2: Specifics of the Adjustment - The stock option exercise price was adjusted from 11.14 RMB to 11.12 RMB per share due to a cash dividend distribution of 0.02 RMB per share [6][7] - The adjustment complies with relevant regulations and will not affect the implementation of the incentive plan or the company's financial status [7][8] Group 3: Impact of the Adjustment - The adjustment of the stock option exercise price is deemed not to have a substantial impact on the company's financial condition and operational results [8] - The supervisory committee has confirmed that the adjustment aligns with legal regulations and the company's incentive plan [8] Group 4: Legal Opinion - The legal opinion from a law firm confirms that the necessary authorizations and approvals for the adjustment have been obtained, and it complies with relevant regulations [8]

Core Viewpoint - The legal opinion letter addresses the adjustment of stock option exercise prices under the 2021 equity incentive plan of Guangdong Electric Sound Marketing Co., Ltd, confirming that the adjustment process complies with relevant laws and regulations [1][3][14]. Summary by Sections Approval Procedures for the Adjustment - On October 26, 2021, the Compensation and Assessment Committee of the Board approved the relevant proposals regarding the 2021 equity incentive plan and submitted them for Board review [3]. - The Board meeting on the same day also approved the proposals, with certain directors recusing themselves due to conflicts of interest [4]. - The Supervisory Board confirmed the eligibility of the incentive recipients and approved the proposals on the same day [5]. - On November 4, 2021, the Board revised the exercise ratios for the stock options from 33%, 33%, 34% to 20%, 40%, 40% [6]. - The proposals were subsequently approved at a special shareholders' meeting on November 15, 2021, granting the Board the authority to adjust the stock option exercise prices [6][7]. Details of the Adjustment - The adjustment of the stock option exercise price was based on the company's annual profit distribution plan, which included a cash dividend of RMB 0.2 per share [14]. - The exercise price was adjusted from RMB 11.14 to RMB 11.12 per share, reflecting the dividend distribution [15]. Conclusion - The legal opinion concludes that the adjustment process adheres to the relevant management regulations and the company's articles of association, confirming the legality and validity of the Board's resolutions regarding the adjustment [14][15].