Granting Stock Options to Incentive Recipients

MING YANG SMART ENERGY GROUP LIMITED

(GDR under the symbol: "MYSE")

(a joint stock company established under the laws of the People's Republic of China with limited liability)

Announcement on Granting Stock Options to Incentive Recipients of the 2025 Stock Option Incentive Plan

Key contents:

l Stock option grant date: October 22, 2025

l Number of stock options granted: 20 million

In accordance with the Administrative Measures for Equity Incentives of Listed Companies (hereinafter referred to as the "Administrative Measures") and the 2025 Stock Option Incentive Plan of Ming Yang Smart Energy Group Limited (hereinafter referred to as the 2025 Stock Option Incentive Plan), as well as the authorization from the third extraordinary shareholders' meeting of Ming Yang Smart Energy Group Limited (hereinafter referred to as "MYSE" or "the Company") in 2025, the Company held the 25th meeting of the third Board of Directors on October 22, 2025, and approved the Proposal on Granting Stock Options to Incentive Recipients of the 2025 Stock Option Incentive Plan. Given that the granting conditions specified in the Company's 2025 Stock Option Incentive Plan (hereinafter referred to as "the Incentive Plan") have been fulfilled, October 22, 2025 is designated as the authorization date for the Incentive Plan, under which 20 million units of stock options will be granted to 260 incentive recipients. The relevant particulars are as follows:

I. Details of stock option grants

(I) Decision-making procedures and information disclosure for the Incentive Plan

1. On September 25, 2025, the Company held the 24th meeting of the third Board of Directors and approved the Proposals Regarding the 2025 Stock Option Incentive Plan (Draft) and its Summary, the Proposal Regarding Assessment Administrative Measures for the Implementation of the 2025 Stock Option Incentive Plan, and the Proposal on Requesting the Shareholders' Meeting to Authorize the Board of Directors to Handle Matters Related to the 2025 Stock Option Incentive Plan. The Board's Remuneration and Assessment Committee has verified the Incentive Plan and issued an approval opinion.

2. From September 29, 2025 to October 10, 2025, the Company publicly announced the list of incentive recipients and their positions within the Company. During the publicity period, the Board's Remuneration and Assessment Committee did not receive any objections. On October 14, 2025, the Company disclosed the Explanation on the Public Announcement and Verification Opinion of the Remuneration and Assessment Committee on the List of Incentive Recipients under the 2025 Stock Option Incentive Plan.

3. On October 20, 2025, the Company held the third extraordinary shareholders' meeting in 2025 and approved the Proposals Regarding the 2025 Stock Option Incentive Plan (Draft) and its Summary, the Proposal Regarding Assessment Administrative Measures for the Implementation of the 2025 Stock Option Incentive Plan, and the Proposal on Requesting the Shareholders' Meeting to Authorize the Board of Directors to Handle Matters Related to the 2025 Stock Option Incentive Plan, and disclosed the Self-Inspection Report on the Trading of the Company's Stocks by Insiders of the 2025 Stock Option Incentive Plan on the same day.

4. On October 22, 2025, the Company held the 25th meeting of the third Board of Directors and approved the Proposal on Granting Stock Options to Incentive Recipients of the 2025 Stock Option Incentive Plan. The Board's Remuneration and Assessment Committee verified the list of incentive recipients for this grant and issued the Verification Opinion of the Remuneration and Assessment Committee on the List of Incentive Recipients (Grant Date) under the 2025 Stock Option Incentive Plan.

(II) The Board's explanation regarding the granting conditions

In accordance with the Administrative Measures and the 2025 Stock Option Incentive Plan, all of the following conditions must be fully met for the incentive recipients to be granted stock options:

1. The Company does not fall under any of the following circumstances:

(1) its financial statements for the most recent accounting year have been issued with an audit report with an adverse opinion or a disclaimer of opinion by the certified public accountant;

(2) its internal control over financial reporting for the most recent accounting year has been issued with an audit report with an adverse opinion or a disclaimer of opinion by the certified public accountant;

(3) its profit distribution has not been made in accordance with laws and regulations, its Articles of Association and public commitments within the most recent 36 months after listing;

(4) equity incentives are prohibited by laws and regulations; or

(5) other circumstances recognized by the CSRC.

2. The incentive recipients do not fall under any of the following circumstances:

(1) being recognized as an unsuitable candidate by the Stock Exchange in the most recent 12 months;

(2) being recognized as an unsuitable candidate by the CSRC or its local offices in the most recent 12 months;

(3) being subject to administrative penalties or market entry bans by the CSRC or its local offices due to significant violations of laws or regulations in the most recent 12 months;

(4) circumstances under which a person may not serve as a director or senior officer of a company, as provided for in the Company Law;

(5) cases in which participation in equity incentives of listed companies is prohibited by laws and regulations; or

(6) other circumstances recognized by the CSRC.

Upon review, the Board believes that neither the Company nor any of the incentive recipients falls under any of the circumstances that would prevent the granting of stock options to the incentive recipients. The conditions for granting stock options under the Incentive Plan have been fulfilled.

II. Details of stock option grants

(I) Grant date: October 22, 2025

(II) Number of options granted: 20 million

(III) Number of recipients: 260

(IV) Exercise price: RMB14.03 per unit

(V) Source of shares: A-share common shares issued by the Company to the incentive recipients and/or A-share common shares repurchased from the secondary market.

(VI) Validity period, exercise period, and exercise schedule

1. Validity period

The Incentive Plan is valid from the grant date of stock options to the date when all stock options are either exercised or cancelled, with a maximum duration not exceeding 36 months.

2. Exercise period

After the Incentive Plan is approved by the Shareholders' Meeting, the granted stock options may be exercised 12 months from the authorization date. The vesting date must be a trading day, but exercise shall not occur during the following periods:

(1) within 15 days before the announcement of the annual report and semi-annual report of the Company; if the announcement date of the annual report and semi-annual report is postponed due to special reasons, it shall be counted from 15 days prior to the originally scheduled announcement date to 1 day prior to the announcement;

(2) within 5 days prior to the announcement of the Company's quarterly report, earnings forecast, or earnings preliminary announcement;

(3) from the date of occurrence of a major event that may have a significant impact on the trading price of the Company's shares and their derivatives or the date of entering the decision-making procedure to the date of disclosure in accordance with the law; or

(4) other periods stipulated by the CSRC and the Shanghai Stock Exchange.

3. Exercise schedule

The exercise periods and corresponding exercise schedule for the stock options granted under the Incentive Plan are as follows:

4. Exercise conditions

During the exercise period, stock options granted to incentive recipients may be exercised only if the following conditions are all met:

(1) The Company does not fall under any of the following circumstances:

a. its financial statements for the most recent accounting year have been issued with an audit report with an adverse opinion or a disclaimer of opinion by the certified public accountant;

b. its internal control over financial reporting for the most recent accounting year has been issued with an audit report with an adverse opinion

or a disclaimer of opinion by the certified public accountant;

c. its profit distribution has not been made in accordance with laws and regulations, its Articles of Association and public commitments within the most recent 36 months after listing;

d. equity incentives are prohibited by laws and regulations; or

e. other circumstances recognized by the CSRC.

(2) The incentive recipients do not fall under any of the following circumstances:

a. being recognized as an unsuitable candidate by the Stock Exchange in the most recent 12 months;

b. being recognized as an unsuitable candidate by the CSRC or its local offices in the most recent 12 months;

c. being subject to administrative penalties or market entry bans by the CSRC or its local offices due to significant violations of laws or regulations in the most recent 12 months;

d. circumstances under which a person may not serve as a director or senior officer of a company, as provided for in the Company Law;

e. cases in which participation in equity incentives of listed companies is prohibited by laws and regulations; or

f. other circumstances recognized by the CSRC.

If the Company falls under any of the circumstances specified in Item (1) above, all stock options that have been granted to the incentive recipients under the Incentive Plan but have not yet been exercised shall be cancelled by the Company; if an incentive recipient falls under any of the circumstances specified in Item (2) above, the stock options granted to the incentive recipient but not yet exercised shall be cancelled by the Company.

(VII) List of incentive recipients and their grants

The allocation of stock options granted under the Incentive Plan among the incentive recipients is shown in the table below:

Notes: 1. Incentive recipients do not include shareholders or actual controllers who individually or jointly hold more than 5% of the Company's shares, nor their parents, spouses, or children.

2. The Company's shares granted to any of the above incentive recipients under the Incentive Plan do not exceed 1.00% of the Company's total share capital (i.e. 2,271,496,706). The total number of underlying shares involved in the Plan in full force of the Company shall not exceed 10.00% of the total share capital of the Company at the time of submission to the Shareholders' Meeting.

3. Minor discrepancies between the sum of individual items and the corresponding totals under the Incentive Plan, if any, result from rounding of the percentage calculations. The same applies below.

III. Sales of the Company's shares by incentive recipients who are directors or senior officers within six months prior to the stock option grant date

After self-inspection, it was confirmed that directors and senior officers participating in the Incentive Plan did not trade the Company's shares within six months prior to the grant date.

IV. Verification of the list of incentive recipients by the Board's Remuneration and Assessment Committee

The Board's Remuneration and Assessment Committee has verified the incentive recipients and related matters identified under the Incentive Plan and issued the following opinion:

1. The individuals listed as incentive recipients under the Incentive Plan meet the conditions stipulated in the Administrative Measures and the 2025 Stock Option Incentive Plan. None of them fall under the circumstances specified in the Administrative Measures that disqualify them from being incentive recipients. Independent directors, shareholders or actual controllers who individually or jointly hold more than 5% of the Company's shares, and their spouses, parents, or children are not included as incentive recipients. The eligibility of the incentive recipients under the Incentive Plan is legal and valid.

2. The grant date determined by the Board complies with the relevant provisions of the Administrative Measures and the 2025 Stock Option Incentive Plan regarding the grant date.

3. Neither the Company nor any of the incentive recipients under the Incentive Plan falls under any circumstances that would prevent the granting or receipt of stock options. The conditions for granting stock options to the incentive recipients under the Incentive Plan have been fulfilled.

In summary, the Board's Remuneration and Assessment Committee agreed to set October 22, 2025 as the grant date for the Incentive Plan, granting 20 million units of stock options to 260 eligible incentive recipients at an exercise price of RMB14.03 per unit.

V. Impact of stock option grants on the Company's financial status

In accordance with the Accounting Standards for Business Enterprises No. 11 - Share-based Payment and Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments, the Company will, on each balance sheet date during the vesting period, revise the estimated number of exercisable stock options based on subsequent information such as the latest changes in the number of eligible participants and the completion status of performance indicators. The services obtained in the current period will be recognized as related costs or expenses and capital reserve, based on the fair value of the stock options on the grant date.

(I) Fair value of stock options and its determination method

The Company selects the Black-Scholes model to calculate the fair value of the options, and used this model to evaluate the 20 million units of stock options granted on October 22, 2025. The specific parameters are selected as follows:

1. Underlying share price: RMB15.37 per share (closing price on the grant date);

2. The validity periods are: 1 year, 2 years (from stock option grant date to the first exercise date of each exercise period);

3. Historical volatility: 14.74%, 16.97% (the volatility of the Shanghai Composite Index over the most recent one and two years, respectively);

4. Risk-free interest rate: 1.50%, 2.10% (the 1-year and 2-year benchmark deposit interest rates for financial institutions set by the People's Bank of China, respectively);

5. Dividend yield: 2.53% (the Company's dividend yield for the most recent year).

(II) Impact of stock option exercise on operating performance of each period

The Company determines the fair value of the stock option on the grant date in accordance with relevant valuation tools, and finally recognizes the share-based payment expenses of the Incentive Plan, which will be amortized according to the exercise proportion during the implementation of the Incentive Plan. Incentive costs arising from the Incentive Plan will be recorded as recurring profit or loss.

In accordance with Chinese accounting standards, the impact of the stock options granted under the Incentive Plan on the accounting costs of each period is shown in the table below:

Notes: 1. The above cost amortization forecast does not represent the final accounting cost. The actual accounting cost depends not only on the actual grant date, closing price on the grant date, and the number of options granted but also on the actual number of options that vest or lapse. Shareholders are also reminded to note the potential dilutive effect.

2. Any minor discrepancies between the sum of individual items and the corresponding totals above are due to rounding.

3. The final impact of the above cost amortization forecast on the Company's operating results will be subject to the annual auditors' report issued by the accounting firm.

The related costs of the Incentive Plan need to be amortized during the vesting period and included in the cost and expenses of each period. Without considering the incentive effect of the Incentive Plan on the Company's performance, based on existing information, it is estimated that the cost amortization of the Incentive Plan will have a certain impact on the annual net profit during the validity period. However, considering the positive impact of the Incentive Plan on the Company's operational development, which stimulates the enthusiasm of the management and business teams, improves operational efficiency, and reduces operating costs, the performance improvement results brought by the Incentive Plan will significantly exceed the increased cost, thereby effectively ensuring the enhancement of the Company's overall value and the interests of all shareholders.

VI. Conclusion of the legal opinion

Llinks Law Office believes that, as of the date of issuance of the legal opinion, the necessary approvals and authorizations at this stage for this grant have been fulfilled in alignment with the Administrative Measures and other relevant laws, regulations, and normative documents, as well as the 2025 Stock Option Incentive Plan; the grant date, incentive recipients, grant quantity, and grant price comply with the Administrative Measures and the 2025 Stock Option Incentive Plan; this grant has met the conditions specified in the Administrative Measures and the 2025 Stock Option Incentive Plan; and this grant still requires MYSE to fulfill the corresponding information disclosure obligations in accordance with relevant laws, regulations, and normative documents.

Ming Yang Smart Energy Group Limited

22 October, 2025