Core Viewpoint - The company has decided to cancel part of the stock options and invalidate some unvested restricted stocks from its third stock option and restricted stock incentive plan due to unmet performance targets for the year 2024 [4][6][7] Group 1: Decision Process and Approval - On May 27, 2024, the company held a board meeting to approve the draft of the third stock option and restricted stock incentive plan, along with its management measures [1][2] - The plan was publicly announced and no objections were raised during the internal review period [2][3] - The plan was approved in a shareholders' meeting on June 12, 2024, and the stock options were granted on June 21, 2024 [3][4] Group 2: Cancellation and Invalidity Details - The company will cancel 1,364,000 stock options and invalidate 580,000 shares of restricted stock from the first vesting period due to failure to meet the performance target of a 15% net profit growth for 2024 [4][5] - The performance assessment period for the incentive plan spans from 2024 to 2026, with annual evaluations [5] Group 3: Impact on the Company - The cancellation of stock options and invalidation of restricted stocks will not have a substantial impact on the company's financial status or operational results [6][7] - The management team's stability and the continuation of the incentive plan will remain unaffected [6][7] Group 4: Committee and Supervisory Opinions - The board's nomination, compensation, and assessment committee confirmed that the cancellation and invalidation are compliant with relevant regulations and do not harm the interests of the company or its shareholders [6][7] - The supervisory board also agreed with the decision, affirming its legality and compliance with applicable laws [7]