IMPRO PRECISION (ASX: 01286) has announced that on June 22, 2026, its wholly-owned indirect subsidiary, Impro Aviation Technology Co., Ltd. (Impro Aviation), allotted and issued a total of 40,597,600 new shares pursuant to an employee share scheme adopted on the same date.

The shares, representing approximately 4.88% of Impro Aviation's equity, were issued to a partnership established as a specific employee shareholding platform for a total consideration of approximately RMB 120.4 million.

The primary objectives of the employee share scheme are to establish and improve a long-term incentive mechanism for Impro Aviation, as well as to attract and retain outstanding talent.

By effectively incentivizing key management, core technical personnel, and other key staff of Impro Aviation and the Group, the scheme aims to better align the interests of shareholders, Impro Aviation, the Group, and individual management, thereby promoting the long-term sustainable development of Impro Aviation and the Group.

Under the scheme, a total of 133 eligible grantees have been granted the right to subscribe for property shares in the partnership, which ultimately holds the Impro Aviation shares, following the allotment and issuance.

On June 11, 2026, the partnership was established with Mr. Lu Ruibo, an executive director, acting as the general partner and one grantee. The remaining 132 other grantees subscribed for property shares in the relevant partnership under the scheme, thereby becoming limited partners of the partnership.

According to the rules of the employee share scheme, the property shares subscribed by the grantees are subject to lock-up restrictions as stipulated in the scheme and the relevant limited partnership agreements to be signed by each grantee.

As of the date of this announcement, the grantees have paid the applicable subscription price of RMB 2.965 per share for the limited partnership property shares in accordance with the terms of the scheme, with the total amount being equivalent to the subscription consideration.

The subscription consideration was determined based on an independent valuation of Impro Aviation at approximately RMB 2.347 billion conducted by an independent valuer on May 16, 2026.