Core Viewpoint - The Sichuan Zigong Transportation Machinery Group Co., Ltd. has proposed a stock option incentive plan for 2025, aiming to enhance employee motivation and align their interests with the company's growth and shareholder value [1][2]. Summary by Sections Incentive Plan Overview - The plan involves granting a total of 4.98 million stock options, representing approximately 2.12% of the company's total share capital as of September 2, 2025 [2][12]. - The stock options will be granted in a one-time allocation without any reserved rights [2][12]. Stock Option Details - The exercise price for the stock options is set at 17.32 yuan per share [4][17]. - The plan will be effective for a maximum of 48 months from the date of stock option registration [3][6]. Eligible Participants - A total of 31 individuals, including directors, senior management, and middle management, will be eligible for the stock options, excluding independent directors and major shareholders [3][10]. - The plan aims to attract and retain talented personnel who directly impact the company's performance [19]. Vesting and Exercise Conditions - The stock options will vest in three phases: 40% after 12 months, 30% after 24 months, and 30% after 36 months from the grant date [3][14]. - The exercise of options is contingent upon meeting specific performance targets, including a net profit growth rate of at least 50% based on the previous year's net profit of 157 million yuan [21][22]. Adjustments and Compliance - The number of stock options and exercise price will be adjusted in case of corporate actions such as stock splits or capital increases [12][26]. - The plan requires approval from the company's shareholders and must comply with relevant laws and regulations [5][8]. Performance Assessment - The performance assessment will be conducted annually, with specific targets set for each year to determine the eligibility for exercising options [25][21]. - Individual performance will also be evaluated, impacting the actual number of options that can be exercised [23][25].

Group 1 - The company held its 22nd meeting of the 5th Board of Directors on July 30, 2025, with all 9 directors present, complying with legal and regulatory requirements [1] - The Board approved changes to the company's registered capital due to the conversion of convertible bonds, the implementation of the 2024 annual equity distribution, and the completion of the cancellation of certain restricted stocks [1] - The company plans to abolish the supervisory board, transferring its powers to the audit committee of the Board, and will revise its Articles of Association accordingly [1][2] Group 2 - The Board proposed to authorize the management to handle subsequent registration changes and amendments to the Articles of Association [2] - All resolutions were passed unanimously with 9 votes in favor, and no votes against or abstentions [2][3] - The company aims to enhance its governance structure and compliance with relevant laws and regulations through these changes [2][4] Group 3 - The company plans to increase its foreign exchange hedging business limit from a maximum of $30 million to $100 million to better manage financial risks associated with currency and interest rate fluctuations [4][5] - The authorization for the foreign exchange hedging business will be effective from the date of approval at the upcoming shareholder meeting [4] - The company will hold its second extraordinary general meeting on August 21, 2025, to discuss these proposals [5]