Beijing Beida Jade Bird Universal Sci-Tech Company Limited (Stock Code: 08095) announced the termination of a capital injection agreement originally signed in May 2025 involving an investor and Shanghai Shengjin. Since the transaction did not complete, the termination does not affect the Group’s 100% equity interest in Guangdong Lumen Pioneer Opto Co., Ltd. (the “Target Company”).

On the same date, directors and shareholders of the Target Company approved a Subsidiary Share Incentive Scheme allowing up to 26,785,714 options to be issued, representing approximately 30% of the Target Company’s total registered capital if fully exercised. Under the scheme, the Group’s equity interest could be diluted from 100% to about 70%. The exercise price was determined with reference to an appraised market value of the Target Company of approximately RMB101 million as of 30 June 2025, reflecting projected cash flow and other key valuation inputs.

In connection with this, 17,857,143 options were granted to certain key personnel of the Target Company. This possible deemed disposal does not constitute a notifiable transaction under Chapter 19 of the GEM Listing Rules because applicable percentage ratios remain below 5%. However, some grantees under the scheme are considered connected persons at subsidiary level, making the grant of options a connected transaction subject to reporting requirements under Chapter 20 of the GEM Listing Rules.

Financial data shows that the Target Company incurred audited net losses of approximately RMB12.51 million for the year ended 31 December 2024 and RMB5.43 million for the first half of 2025. As of 30 June 2025, the Target Company recorded unaudited total assets of about RMB53.63 million and net liabilities of about RMB8.12 million.

The Board views the share incentive arrangement as a means to align employees’ interests with those of the company, incentivizing continued performance and commitment to the Target Company’s growth. The plan’s adoption and the option grants are expected to help with talent retention and motivate key staff members, while the Group will maintain control and consolidate the Target Company’s financial results.