Fengxiang Co. (09977.HK) announced on July 24 that, in order to gradually differentiate between the eligible participants of the 2021 and 2023 share incentive plans, and to ensure that the employee participants of the 2021 share incentive plan only include related parties of the company, while such related parties should be excluded from the employee participants of the 2023 share incentive plan, in accordance with Listing Rule 17.06A, the board of directors announced that on July 24, 2024, the company will (i) cancel 2.96 million reward shares granted to several non-related grantees but not yet allocated under the 2021 share incentive plan, and (ii) newly grant 2.96 million reward shares to such non-related grantees under the 2023 share incentive plan to replace the cancelled grants under the 2021 share incentive plan.

The newly granted reward shares will be partially satisfied by the issuance of 730,000 new H shares within the authorized limit of the plan and partially satisfied by the existing H shares already issued under the 2023 share incentive plan. These shares account for approximately 0.1868% of (i) the total number of issued shares as of the date of this announcement and (ii) the total number of issued shares after the issuance and issuance of new shares for expansion.