Fibocom Wireless Inc. announced that its Board resolved on 6 July 2026 to terminate the 2026 Employee Stock Ownership Plan (ESOP) ahead of schedule, citing a significant fall in the company’s share price and low employee subscription interest.

The ESOP, approved by the extraordinary general meeting on 5 March 2026, was designed to cover up to 269 participants—including directors (excluding independent directors), senior and middle management, and key technical and business personnel. Shares for the plan were to be sourced from the company’s repurchased A-shares at RMB 15.10 per share. As of the termination date, neither grant agreements nor subscription payments had been completed.

Executive Directors Xu Ning and Chen Qihua, both potential ESOP participants, abstained from the Board vote. No other directors reported material interests or abstentions. The Board confirmed that the cancellation complies with the Company Law, Securities Law, and all relevant regulatory guidelines, and stated that the decision will not harm shareholders’ interests or disrupt corporate strategy and operations.

Fibocom indicated it will explore alternative long-term incentive mechanisms aligned with evolving regulatory and market conditions to continue attracting and retaining key talent.