JOINN Laboratories Adjusts 2026 Equity Incentive Scheme and Grants 3.16 Million Restricted A Shares

Bulletin Express06-04

JOINN Laboratories (China) Co., Ltd. announced two key resolutions approved at the fourth meeting of its fifth Board session on 4 June 2026: an adjustment to the 2026 Restricted A Share Incentive Scheme and the formal grant of restricted A shares to eligible participants.

Key adjustments • Participant count reduced from 283 to 280 following three employee resignations. • Total shares to be granted lowered from 3.17 million to 3.16 million A shares—specifically 3,162,300 shares.

Grant details • Grant date: 4 June 2026. • Grant price: RMB 19.17 per share. • Participants: 280 key technical or business personnel (no directors or senior management). • Source of shares: treasury A shares repurchased from the secondary market. • Scheme validity: up to 48 months; lock-up periods of 12, 24 and 36 months with unlocking ratios of 40%, 40% and 20%, respectively.

Performance hurdles Unlocking is contingent on company-wide revenue growth versus 2025 and individual performance reviews. – 2026: revenue growth ≥ 15%. – 2027: revenue growth ≥ 32% or cumulative 2026-2027 growth ≥ 147%. – 2028: revenue growth ≥ 52% or cumulative 2026-2028 growth ≥ 299%. Shares that fail to meet corporate or individual criteria will be repurchased and cancelled at the grant price.

Financial impact Total share-based payment expense is estimated at RMB 45.06 million, amortised over 2026-2029 as follows: • 2026: RMB 17.52 million • 2027: RMB 19.53 million • 2028: RMB 6.76 million • 2029: RMB 1.25 million

Compliance and connected-party considerations The scheme involves treasury shares and is subject to Hong Kong Listing Rule 17.12 disclosures but does not constitute a new share issuance under Chapter 17. Grants to subsidiary directors and supervisors are classified as connected transactions but are exempt from further reporting or shareholder approval under Chapter 14A due to size and ordinary remuneration terms.

Legal counsel from Tian Yuan Law Firm confirmed that all approvals, procedures and participant qualifications comply with PRC regulations, the Administrative Measures for Equity Incentives of Listed Companies, and JOINN’s Incentive Scheme.

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