Stock code: 688114 Stock abbreviation: MGI Announcement No.: 2024-069

Shenzhen MGI Technology Co., Ltd

2020 Stock Option Incentive Plan Exercise Results of the Third Exercise Period

and announcement of changes in shares

The board of directors and all directors of the company guarantee that there is no false record, misleading statement or material omission in the content of this announcement, and assume legal responsibility for the authenticity, accuracy and completeness of its content.

Important Content Notes:

●Number of shares exercised this time: 878,531 shares, accounting for 0.21% of the total share capital of Shenzhen MGI Technology Co., Ltd. (hereinafter referred to as the "Company" or "MGI") before the exercise.

●The time of listing and circulation of the exercised shares: the exercise of the shares can be listed and circulated for three years from the date of self-ownership.

It is expected to be listed for circulation on October 16, 2027.

1. The decision-making procedures and related information disclosure for the exercise of stock options

In October 2020, the company formulated and implemented the "Shenzhen MGI Technology Co., Ltd. 2020

The Stock Option Incentive Plan (hereinafter referred to as the "Incentive Plan", the "2020 Stock Option Incentive Plan" or the "Option Incentive Plan") granted a total of 4.6 million stock options to 117 incentive recipients at an exercise price of RMB 29.70 per share, the grant date is October 26, 2020, and the validity period is from the date of grant of stock options to the incentive

A maximum of 10 years shall be from the date of full exercise, void or cancellation of the stock options granted to the target.

On October 10, 2020, the second meeting of the first board of directors of the company deliberated and passed the "On the Preparation of the Deep

Zhenhua Dazhi Technology Co., Ltd. 2020 Stock Option Incentive Plan" and "Proposal on Requesting the General Meeting of Shareholders to Authorize the Board of Directors to Handle Matters Related to the Company's 2020 Stock Option Incentive Plan".

On October 10, 2020, the second meeting of the first board of supervisors of the company deliberated and passed the "On the Preparation of the Deep

Proposal on the 2020 Stock Option Incentive Plan of Shenzhen MGI Technology Co., Ltd. and Proposal on Verifying the List of Incentive Recipients for the 2020 Stock Option Incentive Grant of Shenzhen MGI Technology Co., Ltd.

On October 26, 2020, the company's third extraordinary general meeting of shareholders in 2020 deliberated and approved the "About the Formulation

"Shenzhen MGI Technology Co., Ltd. 2020 Stock Option Incentive Plan" and "Proposal on Requesting the General Meeting of Shareholders to Authorize the Board of Directors to Handle Matters Related to the Company's 2020 Stock Option Incentive Plan".

On September 8, 2022, the Company held the 10th meeting of the first board of directors and the 10th meeting of the first board of supervisors

Due to the personal circumstances of 7 employees, the board of directors agreed that the company would cancel a total of 226,300 stock options granted to these employees in the stock option incentive plan.

On September 26, 2022, the 11th meeting of the 1st Board of Directors and the 11th meeting of the 1st Board of Supervisors were held

The meeting deliberated and passed the "Proposal on the Achievement of the Exercise Conditions of the First Exercise Period of the Company's 2020 Stock Option Incentive Plan" and the "Proposal on Canceling the Partially Granted Stock Options of the 2020 Stock Option Incentive Plan".

The independent directors of the Company have issued a concurring independent opinion in this regard, which is detailed in the Company's statement dated 27 September 2022

Relevant announcements disclosed on the website of the Shanghai Stock Exchange (www.sse.com.cn).

On April 4, 2023, the Company held the 15th meeting of the first board of directors and the first board of supervisors

At the fifteenth meeting, the "Proposal on the Achievement of the Exercise Conditions of the Second Exercise Period of the Company's 2020 Stock Option Incentive Plan" was deliberated and approved, and the independent directors of the company have expressed their independent opinions on this, which are detailed in the above

The relevant disclosed by the Company on the website of the Shanghai Stock Exchange (www.sse.com.cn) on April 5, 2023

Announcement.

On August 22, 2024, the Company held the 8th meeting of the 2nd Board of Directors and the 8th meeting of the 2nd Board of Supervisors

At the meeting, the "Proposal on the Achievement of the Exercise Conditions in the Third Exercise Period of the 2020 Stock Option Incentive Plan" and the "Proposal on Canceling the Partial Granted Stock Options of the 2020 Stock Option Incentive Plan" were deliberated and approved, and the above content is detailed in the relevant announcement disclosed by the company on the website of the Shanghai Stock Exchange (www.sse.com.cn) on August 24, 2024.

On September 19, 2024, the company held the ninth meeting of the second board of directors and the ninth meeting of the second board of supervisors

At the meeting, the "On Adjusting the Exercise Price and Exercisable Date of the 2020 Stock Option Incentive Plan" was reviewed and approved

The above content can be found on the company's website of the Shanghai Stock Exchange on September 21, 2024

(www.sse.com.cn) Relevant announcements to be disclosed.

2. The basic situation of the exercise of the stock option

(1) The number of shares exercised this time

The number of rights granted in this exercise The number of rights exercised this time

Serial Number Name Position Number of Stock Options Number of Quantity Amount of Granted

Quantity (shares) (shares) to stock options

Proportional to the quantity

1. Directors, senior management personnel and core technical personnel

1 Mu Feng Director & General Manager 250,200 83,400 33.33%

2 Yu Dejian Director and President 250,200 83,400 33.33%

3 Xu Xun Director 125,100 41,700 33.33%

4 Zhu Yanmei Director 125,100 0 0.00%

Chief Operating Officer, Core

5 Jiang Hui 83,400 27,800 33.33%

Technical personnel

6 Liu Bo Chief Financial Officer 83,400 27,800 33.33%

Executive Vice President, Core

7 Liu Jian 83,400 27,800 33.33%

Technical personnel

Senior Vice President, Core

8 Ni Ming 83,400 27,800 33.33%

Technical personnel

Secretary of the Board of Directors, Senior

9 Wei Wei 83,400 27,800 33.33%

Vice President

Subtotal 1,167,600 347,500 29.76%

2. Other incentive recipients

Other incentive recipients 69 2,406,200 531,031 22.07%

Total 3,573,800 878,531 24.58%

(2) The source of the exercised shares

The exercise of shares comes from the company's directional issuance of A shares of ordinary shares to the incentive recipients.

(3) The number of people exercising rights

There are 88 incentive recipients who meet the conditions for exercising their rights, and a total of 77 people have exercised their rights this time. Incentive pairs

For example, the unexercised stock options will automatically expire and be cancelled by the company.

3. The listing and circulation arrangements and changes in share capital of the stock option exercised shares

(1) The date of listing and circulation of the exercised shares

The exercise of the shares can be listed and circulated after three years from the date of self-ownership, and the expected listing and circulation date is October 2027

May 16th.

(2) The number of shares listed and circulated this time: 878,531 shares

(3) Restrictions on the lock-up and transfer of shares exercised by directors and senior managers

1. Director and General Manager Mu Feng participated in the exercise of 83,400 shares, Director and President Yu Dejian participated in the exercise of 83,400 shares, Director Xu Xun participated in the exercise of 41,700 shares, Chief Operating Officer and core technical personnel Jiang Hui participated in the exercise of 27,800 shares, Chief Financial Officer Liu Bo participated in the exercise of 27,800 shares, Executive Vice President and core technical personnel Liu Jian participated in the exercise of 27,800 shares, and Senior Vice President and Core Technical Personnel Ni Ming participated in the exercise

27,800 shares, 27,800 shares of Wei Wei, secretary of the board of directors and senior vice president, participated in the exercise of the rights, and the rights were exercised for 3 years from the date of self-ownership

No reduction is allowed. The transfer shall comply with the relevant provisions of the Rules for the Management of the Company's Shares Held by Directors, Supervisors and Senior Managers of Listed Companies and Their Changes, and the Self-Regulatory Guidelines for Listed Companies on the Shanghai Stock Exchange No. 15 - Reduction of Shareholdings by Shareholders, Directors, Supervisors and Senior Managers.

2. If the incentive object is the company's directors and senior managers, the company's shares held by them will be sold within 6 months after the purchase, or bought again within 6 months after the sale, and the proceeds therefrom shall be owned by the company, and the board of directors of the company will recover the proceeds.

3. The shares obtained by other incentive recipients due to the exercise of rights after the company's listing shall not be reduced within 3 years from the date of their own rights; After the expiration of the above-mentioned lock-up period, the incentive recipients shall be implemented in accordance with the relevant shareholding reduction regulations of the company's directors, supervisors and senior managers.

(4) Changes in share capital

Unit: shares

Before This change After the change

Total share capital 415,637,624 878,531 416,516,155

After the exercise of the rights, the actual controller of the company has not changed.

Fourth, the capital verification and share registration

On September 25, 2024, Lixin Certified Public Accountants (Special General Partnership) issued the "Shenzhen Huada

The capital verification report of Zhizao Technology Co., Ltd. (Xinhui Shi Shen Bao Zi [2024] No. 10305) has been verified

The company's new registered capital and share capital as of September 25, 2024. As of September 25, 2024,

MGI has received a total of RMB 25,776,099.54 paid by the incentive recipients of the 2020 Stock Option Incentive Plan in the third exercise period. The above amount is included in the "share capital" of RMB878,531.00

The "capital reserve" is RMB24,897,568.54. The new shares were added in October 2024

On the 16th, the registration was completed at the Shanghai branch of China Securities Depository and Clearing Co., Ltd.

5. The impact of the new shares after the exercise of the option on the latest financial report

The number of stock options exercised this time is 878,531 shares, accounting for 0.21% of the company's total share capital before the exercise, and after this exercise, the company's total share capital will be changed from 415,637,624 shares to 416,516,155 shares. The exercise did not have a significant impact on the company's shareholding structure.

Before this exercise, the company's basic earnings per share from January to June 2024 was -0.72 yuan; After this exercise, to:

The total share capital after exercise is 416,516,155 shares, and the company's earnings per share are diluted accordingly, which will not have a significant impact on the company's latest financial position and operating results.

The announcement is hereby made.

Shenzhen MGI Technology Co., Ltd

board of directors

October 18, 2024