### Company Overview Shenzhen Xinyichang Technology Co., Ltd. has initiated a Restricted Stock Incentive Plan (draft) aimed at incentivizing its directors, senior management, and key employees. The report outlines the details of the plan which is set to be implemented in 2025, as well as the expected financial implications for the company and its stakeholders.

### Key Financials In the proposed incentive plan, approximately 1.064 million shares of restricted stock are set to be awarded, representing around 1.04% of the company’s total equity. The initial stock grant will involve 851,200 shares, with an additional 212,800 shares reserved for future allocation. The grant price is set at 28.03 yuan per share, aligning with both internal and market valuation metrics, reflecting prudent management strategy to attract and retain talent.

### Management Commentary Management expresses a positive outlook on the incentives plan, emphasizing its potential to foster long-term performance and retention of critical staff. They believe that by linking stock awards to performance targets—specifically, aiming for a 15% revenue growth in 2025 and 35% in 2026—the program will drive market-based performance while enhancing employee loyalty.

### Trends and Drivers The primary driver of the incentive plan is the company’s focus on reinforcing team motivation and retention strategies in a competitive market. The legal opinion obtained confirms the compliance of the incentive program with relevant regulations, reducing legal risks. However, uncertainties about potential legal liabilities related to undisclosed facts and impacts on shareholder interests necessitate careful monitoring.

### Risks and Outlook There are several risks associated with the incentive plan. Non-compliance with the stipulated conditions may lead to the termination of the plan, while the potential departure of key employees could undermine its intended effects. Legal compliance remains paramount, as changes to applicable legislation or unexpected legal challenges could adversely affect the program’s viability.

### Conclusion Overall, Shenzhen Xinyichang Technology Co., Ltd.'s Restricted Stock Incentive Plan reflects a strategic initiative to enhance employee engagement and align their interests with corporate goals. While the plan has robust provisions for compliance and performance, stakeholders should remain vigilant regarding execution challenges and legal risks that could impact the overall effectiveness.