1. Confirmation of restricted stock incentive grant
The company announced on December 15 to grant restricted stock incentives to directors, senior managers and core technical (business) backbones. The number of restricted shares is 20.29 million shares, 5.33 yuan per share. Accounts for 3.5% of the total share capital of the company at the time of the announcement of this draft incentive plan. The restricted shares granted under this incentive scheme shall be restricted for a period of 12 months from the date of grant. The unrestricted sales assessment year of the incentive scheme is three fiscal years from 2016 to 2018, with the average net profit from 2013 to 2015 as the base and the net profit growth rate of no less than 30%, 40% and 50% respectively from 2016 to 2018.
2. Acquire part of the shares of the participating subsidiaries
Zhejiang Anqin, a wholly owned subsidiary of Security Control Technology, plans to acquire a 21% stake in Hangzhou Heren Robotics Co., Ltd. with its own capital of RMB 18.06 million. After the completion of the acquisition, Zhejiang Security Control's stake in other robots will be increased from 9% to 30%.
3. Participate in the establishment of industrial funds
The company announced that it intends to participate in Sichuan Dinghao Development Equity Investment Fund Management Co., Ltd. as a general partner to initiate and set up Sichuan Beautiful City Development Equity Investment Center. The size of the industrial fund is not less than RMB 500 million. Security Control Technology uses its own capital of not less than RMB 120 million as the inferior limited partner to participate in the industrial fund share. The fund will last for eight years and will mainly invest in urban development, infrastructure, smart cities and other fields. This can make use of the experience, capabilities and resources of professional investment institutions to speed up the strategic development layout of the company in the wisdom industry and enrich the company's products and services in the field of wisdom.
4. Additional commitments of shareholders
Corporate shareholders Beijing Hongji Chase, Beijing Honghaiqing and natural person shareholder Li Xin undertake to transfer their company shares directly or indirectly within six months from the date of resignation of Mr. Si Yiming, the former director, and Mr. Zhang Jianping, the former supervisor, respectively (November 24, 2016 to May 25, 2017). The additional shares promised not to be reduced account for 4.478% of the company's total share capital.
