Hongyuan Green Energy plans 2025 employee stock ownership program

Beijing Merits Tree Law Firm has issued a legal opinion confirming Hongyuan Green Energy Co., Ltd.'s eligibility to implement its 2025 employee stock ownership plan. The plan, which received initial approval from the board of directors on September 5, 2025, aims to incentivize key personnel.

The plan's participants, comprising directors (excluding independent directors), senior management, and core employees, will not exceed 75 individuals, with specific allocations for directors and senior management. The total number of shares corresponding to the plan, including reserved portions, is capped at 3,888,698 shares. This represents approximately 0.57% of the company’s current total share capital of 679,022,202 shares. Participants will subscribe to the company's shares at a price of 11.61 yuan per share.

The plan involves a total of up to 45,147,800 units, with each unit valued at 1.00 yuan. The shares for the plan will be sourced from the company's repurchased A-share ordinary stock. The initial grant portion will unlock in three phases over a 36-month period, while the reserved grant portion will unlock in two phases over 24 months. The plan's total duration will not exceed 60 months.