On December 27, 2023, Hualan Co., Ltd. (301093.SZ) announced that it will hold the 31st meeting of the fifth Board of Directors and the 28th meeting of the fifth Supervisory Board on December 27, 2024, to review and approve the proposal to terminate the implementation of the 2022 Restricted Stock Incentive Plan and repurchase, cancel, and invalidate the restricted stocks.

Given the significant changes in the internal and external operating environment compared to when the incentive plan was formulated, there is considerable uncertainty in achieving the subsequent performance assessment targets set for this incentive plan. Continuing to implement this incentive plan is unlikely to achieve the expected incentive purposes and effects. To fully realize effective incentives for the company's employees, in conjunction with the willingness of the incentive targets and the company's future development plans, the Board of Directors plans to terminate this incentive plan following verification, and the company will repurchase and cancel the first category of restricted stocks that have been granted but are still under trading restrictions at the grant price. Additionally, the company will invalidate the second category of restricted stocks that have been granted to the incentive targets and have not yet vested, including the initial and reserved grants. Accompanying documents, such as the company's "2022 Restricted Stock Incentive Plan (Draft)" and its summary, as well as the company's "2022 Restricted Stock Incentive Plan Implementation Evaluation and Management Measures," will also be terminated.