Zhejiang Furun (600070): Completed The Grant And Registration Of Restricted Shares In 2021, And Granted About 15225400 Shares

Zhejiang Furun Digital Technology Co., Ltd. 2021 restricted stock incentive plan award result announcement

The board of directors and all directors of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this announcement, and shall bear individual and joint liabilities for the authenticity, accuracy and completeness of the contents.

Important content tips:

● registration date of restricted shares: June 18, 2021

* the number of restricted shares registered was 15225386

I. restricted stock grants

(1) restricted stock grants:

Zhejiang Furun Digital Technology Co., Ltd. (hereinafter referred to as "the company") held the 10th meeting of the 9th board of directors and the 7th Meeting of the 9th board of supervisors on May 18, 2021, deliberated and passed the proposal on granting restricted shares to incentive objects and the proposal on adjusting the list of incentive objects granted in the incentive plan of restricted stock in 2021. According to the provisions of the company's 2021 restricted stock incentive plan (hereinafter referred to as the "incentive plan") and the authorization of the first extraordinary general meeting of shareholders in 2021, the board of directors of the company has completed the registration of the grant of restricted shares. The details of grant registration are as follows:

1. Grant date: May 18, 2021.

2. Grant quantity: 15225386 shares.

3. Number of persons granted: a total of 53 persons, including directors, senior managers and core backbone (technical) personnel who worked in the company (including subsidiaries, the same below) when the company announced the incentive plan.

4. Grant price: 3.29 yuan / share.

5. Stock source: the company's A-share common stock repurchased from the secondary market.

Among the 58 incentive objects to be granted, five of them, Yang Bin, Zhou Wei, Wei Ren, Yang Zhenhao and Wang Lijuan, voluntarily give up participating in the incentive plan. According to the authorization of the first extraordinary general meeting of shareholders in 2021, the company adjusted the list of incentive objects granted by the incentive plan. After the adjustment, the incentive objects granted in the incentive plan were 53, The shares of restricted shares to be granted corresponding to the five incentive objects mentioned above are subscribed by other incentive objects, and the total number of restricted shares granted this time remains unchanged. In addition to the changes in the list of incentive objects, the content of this grant is consistent with the equity incentive plan approved by the general meeting of shareholders of the company.

Therefore, the company actually granted 53 incentive objects with 15225386 shares of restricted shares.

(2) list of incentive objects and actual grant registration:

II. Validity period, sales restriction period and lifting of sales restriction arrangement of incentive plan

The effective period of the incentive plan is from the date of the completion of the grant registration of restricted shares to the date when all the restricted shares granted to the incentive objects are released from the sales restriction or repurchase cancellation date, and the longest period shall not exceed 48 months.

The sales restriction period of the restricted shares granted by the plan is 12 months, 24 months and 36 months from the date of completion of the grant registration of the restricted shares. The restricted shares granted to the incentive objects under the plan shall not be transferred, used for guarantee or debt repayment before the restriction is lifted.

If the conditions for lifting the sales restriction in the current period have not been fulfilled, the restricted shares shall not be lifted or deferred to the next period. After the expiration of the sales restriction period, the company will handle the issue of lifting the sales restriction for the incentive objects meeting the conditions for lifting the sales restriction, and the restricted stocks held by the incentive objects that fail to meet the conditions for the lifting of the sales restriction shall be repurchased and cancelled by the company.

The release period of the restricted shares granted by the incentive plan and the time arrangement for each period are shown in the table below:

III. capital verification of subscription funds granted for restricted shares

According to the capital verification report issued by Tianjian Certified Public Accountants (special general partnership), as of May 31, 2021, the actual number of subscribers was 53, the number of shares subscribed was 15225386, the issue price was RMB 3.29 per share, and the total amount of raised funds was RMB 50091519.94. All the raised shares were transferred into the bank account of the company in the form of monetary funds.

As the stock source of this issue is the stock repurchased by the company's special repurchase account, the total amount of the company's share capital remains unchanged, with an increase of 15225386 shares of equity incentive restricted shares (tradable shares with limited sales) and a decrease of RMB 15225386 shares of treasury shares (non tradable shares).

IV. registration of restricted shares granted

The grant and registration procedures of restricted shares involved in the incentive plan have been completed on June 18, 2021. Shanghai Branch of China securities registration and Clearing Co., Ltd. has issued the certificate of securities change registration. The stock registration date of this incentive plan is June 18, 2021.

V. influence on the controlling shareholders before and after the grant

The source of restricted stock granted in this incentive plan is the company's shares which have been repurchased from the secondary market, and the total share capital of the company will remain unchanged after the grant of the incentive plan is completed; After the grant is completed, the controlling shareholder of the company will not change. The controlling shareholder of the company is still Furun Holding Group Co., Ltd., and the incentive plan grant will not cause the change of the company's control right.

Vi. changes in equity structure

(unit: share)

VII. Use plan of the raised funds

The total amount of funds raised from restricted shares granted by the company in this incentive plan is RMB 50091519.94. All the funds raised by this grant of restricted shares will be used to supplement the company's working capital.

VIII. Impact of the grant on the latest financial report

According to the relevant provisions of the accounting standards, the company determines the fair value of the restricted shares on the grant date, and finally confirms the share based payment expenses of this incentive plan, which will be recognized by stages according to the proportion of lifting the sales restriction during the implementation of the incentive plan.

If the company grants restricted shares on May 18, 2021, according to the Chinese accounting standards, the impact of the restricted shares granted in the incentive plan on the accounting cost from 2021 to 2024 is shown in the table below:

The above results do not represent the final accounting cost. The actual accounting cost is related to the actual effective and invalid quantity in addition to the grant date, grant price and grant quantity. The final results of the above impact on the company's operating results shall be subject to the annual audit report issued by the accounting firm.

It is hereby announced.

Zhejiang Furun Digital Technology Co., Ltd

Board of directors

22 June 2021