Haier Smart Home Co., Ltd. announced the cancellation of 31.96 million A-share options across its 2021 and 2022 incentive schemes after the company’s 2025 profit growth failed to meet preset performance hurdles.

The cancelled options comprise: • 8.41 million options from the 2021 A Share Option Incentive Scheme—7.99 million relating to the first grant held by 354 participants and 0.41 million from the reserved grant held by 10 participants. • 23.55 million options from the 2022 A Share Option Incentive Scheme granted to 1,667 participants.

Both schemes required the compound annual growth rate (CAGR) of net profit attributable to the parent company in 2025 over 2021 to reach at least 15%. The company reported RMB19.55 billion in 2025 net profit attributable to the parent, reflecting a 10.60 % CAGR, below the threshold. Consequently, the fourth exercise period under the 2022 scheme and the fifth exercise period under the 2021 scheme were rendered ineligible for exercise.

The Remuneration and Assessment Committee confirmed that the cancellations comply with China’s regulatory framework and the respective scheme rules, while legal counsel affirmed proper authorization and procedural compliance. Haier Smart Home stated that the cancellations will not materially affect its financial position or operating results.

The board remains committed to driving value creation for shareholders following the adjustment to its equity incentive arrangements.