Kangda International Environmental Company Limited (Kangda Environmental) has proposed to grant 115.00 million share options to Executive Director and Chairman Du Lindong, according to a board announcement released on 4 May 2026.

The options carry an exercise price of HK$0.73 per share—above both the 4 May closing price of HK$0.72 and the HK$0.73 five-day average—and represent approximately 4.98% of Kangda Environmental’s issued share capital. Du is required to pay HK$1.00 upon acceptance, and the options will be exercisable for one year after vesting.

Vesting schedule and performance metrics • Tranche 1: 46.00 million options vest on 1 April 2027 • Tranche 2: 34.50 million options vest on 1 April 2028 • Tranche 3: 34.50 million options vest on 1 April 2029

Vesting is contingent on reaching a mandatory market-capitalisation hurdle—HK$2.50 billion, HK$3.75 billion and HK$5.63 billion for 2026, 2027 and 2028 respectively—plus additional targets for net profit, gearing ratio and disposal of at least three wastewater-treatment projects each year. If later-year performance exceeds cumulative targets, unvested options from earlier tranches can vest retroactively.

Corporate safeguards • Options lapse under circumstances already stipulated in the share-option plan; no separate clawback clause is imposed. • Du has agreed to a lock-up: any shares obtained through option exercise cannot be disposed of while he remains a director and for six months thereafter. • No financial assistance will be provided by the company for option exercises.

Shareholder approval required Because the proposed grant exceeds the 1% individual cap within a 12-month period, it must be approved by independent shareholders at the upcoming annual general meeting. Du and his associates will abstain from voting. The grant has been cleared by all independent non-executive directors.

Scheme capacity Post-grant, the company will have used 53.74% of its current option pool mandate, leaving 98.97 million shares available for future grants. A circular detailing the proposal will be dispatched ahead of the vote.