Contemporary Amperex Technology Co., Limited (CATL) plans to launch its 2026 Second A Share Employee Stock Ownership Plan (ESOP) following board approval at the 20th meeting of the fourth session on 30 September 2026. The initiative awaits shareholder endorsement at an upcoming general meeting.

The proposed ESOP targets up to 5,960 mid-level managers and core technical staff—excluding directors, senior executives and shareholders holding 5% or more—under a voluntary participation framework. Total funding will not exceed RMB 1.28 billion, with employees subscribing to a maximum 8.08 million A shares at a fixed transfer price of RMB 158.42 per share. The share pool represents approximately 0.175% of CATL’s current issued share capital of 4.63 billion shares.

Shares will be sourced from CATL’s existing repurchase account, which presently holds 28.32 million A shares (0.612% of total capital). Of the ESOP’s 8.08 million shares, 1.70 million (21.04%) are reserved for future grants to additional eligible staff.

The ESOP carries a 60-month term and a 36-month lock-up period for the initial grant, with unlocking scheduled in three tranches: 30% after 12 months, another 30% after 24 months, and the remaining 40% after 36 months, contingent on individual performance. Participants achieving assessment grades of A to B- will unlock 100% of the tranche; those graded C or D will unlock none.

No single participant may hold more than 1% of CATL’s total share capital through this plan. The company will not provide loans, guarantees or other financial assistance to employees for their subscriptions. Management of the ESOP will rest with an internal Management Committee under the oversight of a Holders’ Meeting, while the board—subject to shareholder authorization—may adjust share numbers or prices in corporate actions such as dividends, splits or consolidations.

The proposal, governed by PRC regulations and Hong Kong Listing Rules Chapter 17, does not involve the issuance of new shares. Full documentation and notice of the general meeting will be circulated in due course.