Core Viewpoint - The stock incentive plan proposed by SanTai Co., Ltd. aims for high net profit growth targets from a low base in 2024, raising questions about the effectiveness of the incentive given the significant drop in net profit expected for that year [2][5][12]. Group 1: Stock Incentive Plan - SanTai plans to grant 8.4393 million shares at a price of 4.67 yuan per share, which is approximately half of the current market price of 9.30 yuan per share [3][4]. - The incentive plan includes a total of 843.93 million shares, representing 1.07% of the total share capital, with 99.4716 million shares reserved for future grants [3][4]. - The performance targets for the incentive plan are set at net profit growth rates of no less than 110%, 150%, and 200% for the years 2025, 2026, and 2027, respectively, based on the low net profit of 14.36 million yuan expected in 2024 [5][6]. Group 2: Financial Performance - SanTai's net profit is projected to decline by 88.38% to 14.36 million yuan in 2024, following net profits of 141 million yuan in 2022 and 124 million yuan in 2023 [12]. - The company achieved a net profit of 14.0044 million yuan in the first quarter of 2024, indicating that it only needs to generate an additional 15 million yuan in the remaining quarters to meet the annual target [6][12]. - Revenue for SanTai has remained relatively stable, with figures of 1.588 billion yuan, 1.701 billion yuan, and 1.751 billion yuan from 2022 to 2024, despite the drastic drop in net profit [12]. Group 3: Project Adjustments and Challenges - SanTai has faced challenges with its fundraising projects, including the termination and modification of certain projects, such as the "Intelligent Upgrade of Warehousing" project [8][9]. - The company cited reasons for project adjustments, including changes in market demand and operational strategies, which have led to slow progress in project implementation [10][12]. - The overall investment progress for key projects is lagging, with only 26.79% completion for the cross-border e-commerce system upgrade and 0.49% for the new compliance detection software project [10][11].