Far East Smarter Energy Equity Incentive Upgraded Vigorously, Employees can Borrow Money from Far Ea

On July 13, Smarter Energy (600869) published a supplementary announcement on core staff equity incentive plan; in order to further improve the enthusiasm of Far East series core staff to increase the shareholding of Smarter Energy and further enhance investors’ confidence, Far East Holding Group revised part of the provisions of Incentive System For Long-term Shareholding Increase of Core Staff for Smarter Energy on July 13, 2016, the core staff can borrow money from the Group Company (the interest rate is the bank loan interest rate in the same period and the borrowing shall be paid off prior to December 31 of each year; if an employee fails to increase the shareholding any longer, he/she shall pay back the corresponding principal and interest within five days after reducing the shareholding; if the repayment is overdue, two ten-thousandths liquidated damages or compensation shall be borne separately for all the repayments overdue), and buy the stock of Smarter Energy through secondary market.

According to the incentive plan announced by Smarter Energy before, the number of employees that can participate in shall be no more than 3000, the total scale for shareholding increase shall be less than RMB 3 billion yuan. Smarter Energy makes a commitment that Far East Holding Group will completely complement the selling book loss of shares of Smarter Energy that the core employees buy in accordance with the rules if the book value of shares is lower than the cost of acquisition after the shares are held for continuous 24 months from the registration date. Undoubtedly, this supplementary announcement provides a strong support for core staff’s shareholding increase plan, it is conducive to the implementation of staff’s shareholding increase plan; conducive to full excavation of growth driving force inside the company, further promoting the effective landing of strategic transformation of company and realizing sound, rapid and sustainable development.

In recent years, with the steady growth in traditional business, Smarter Energy has also positively got through to energy Internet sector. Since 2013, it has had overall arrangement in energy Internet and has purchased Intelligence Power and TOAERO, etc., Energy Interconnection Platform construction has been increasingly perfect; the synergistic effect of subordinate energy control system, power lithium battery, intelligent system, wire and cable, e-commerce “Trading Pay” is obvious; it’s expected to seize the opportunity to explore domestic ternary growth space through acquisition of First New Energy with exclusive investment. In the process of strategic transformation, the vigorous launching of safeguard clause of shareholding increase plan makes the core staff have more opportunities to become the shareholders of the company, while binding the interests of employees, enterprise and owners, it also greatly improve staff's enthusiasm and cohesion, benefiting company transformation and upgrading development for a long time and greatly boosting the confidence and expectation of capital market to the company.