Shanxi Meijin Energy Co.Ltd(000723) : supplementary announcement on 2022 restricted stock incentive plan (Draft)

Securities code: 000723 securities abbreviation: Shanxi Meijin Energy Co.Ltd(000723) Announcement No.: 2022-008 Shanxi Meijin Energy Co.Ltd(000723)

Supplementary announcement on 2022 restricted stock incentive plan (Draft)

The company and all members of the board of directors guarantee that the information disclosed is true, accurate and complete without false records, misleading statements or major omissions.

The 27th meeting of the ninth board of directors and the 13th meeting of the ninth board of supervisors held by Shanxi Meijin Energy Co.Ltd(000723) (hereinafter referred to as "the company") on January 21, 2022 considered and adopted the proposal on and its summary, the proposal on , and other relevant proposals, The above proposals need to be submitted to the general meeting of shareholders of the company for deliberation. For details, please refer to the Shanxi Meijin Energy Co.Ltd(000723) 2022 restricted stock incentive plan (Draft) and its abstract, the measures for the administration of the implementation and assessment of Shanxi Meijin Energy Co.Ltd(000723) 2022 restricted stock incentive plan and other announcements disclosed by the company on cninfo.com on January 22, 2022. The scientificity and rationality of the performance evaluation objectives set at the company level of this incentive plan are explained as follows:

1、 The company level performance assessment objectives set in this incentive plan

The company level performance assessment of the company's restricted stock incentive plan in 2022 is as follows: in the fiscal year from 2022 to 2023, the performance assessment is carried out annually:

Performance assessment objectives during the lifting of sales restrictions

The first sales restriction lifting period is based on the three-year average net profit from 2019 to 2021, and the growth rate of the company's net profit in 2022 is not less than 5%

Based on the three-year average net profit from 2019 to 2021, the company's net profit in 2023 will be the second period of lifting the sales restriction

The growth rate shall not be less than 10%

Note: the above net profit assessment indicators are based on the audited net profit attributable to the shareholders of the listed company, excluding the impact of the implementation of the equity incentive plan and the subject matter of major asset restructuring in the future. If the method of net profit recognition and measurement changes due to changes in relevant laws and regulations, the base for 2019-2021 will be adjusted accordingly.

2、 Supplementary explanation on the scientificity and rationality of setting performance assessment objectives at the company level

The above performance appraisal objectives are mainly set from the following aspects:

1. The net profit of the company in 2019 is 956 million yuan, and that in 2020 is 705 million yuan. The net profit announced according to the performance is expected to be 2.5 billion yuan to 3 billion yuan in 2021, and the average net profit in the three years from 2019 to 2021 is 1.387 billion yuan to 1.554 billion yuan. The company's net profit increased significantly in 2021, mainly due to the limited supply of imported coal, the replacement of production capacity and technological transformation and upgrading of the coke industry, the high operation of the coal and coke market in 2021, the impact of the continuous rise of coal market prices, and the company's profitability increased significantly. The continuous price rise in the coal market has many uncertain effects. For example, the company's net profit in 2018 was 1.797 billion yuan, and its performance fell significantly in 2019 and 2020. If the performance in 2021 is taken as the assessment base alone, it can not represent the average level of the company's performance for many years or the trend level of the company's performance.

2. The average performance of Listed Companies in recent three years is taken as the reference value:

(1) Shandong Link Science And Technology Co.Ltd(001207) (001207) takes the average net profit of 2018-2020 as the base;

(2) Create Technology & Science Co.Ltd(000551) (000551) is based on the average of net profit deducted from non parent company in the three years from 2018 to 2020;

(3) Jiangsu Suyan Jingshen Co.Ltd(603299) (603299) is based on the total average profit from 2019 to 2021.

Selecting the average profit of recent three years as the performance index can reflect the growth of the company's profitability and market value, meet the relevant requirements of the measures for the administration of equity incentive of listed companies for the setting of performance assessment indicators, and is scientific and reasonable.

3. Take companies in the same industry as an example

(1) Shaanxi Heimao Coking Co.Ltd(601015) (601015) the net profit in 2019 is 29 million yuan, the net profit in 2020 is 278 million yuan, the net profit announced according to the performance forecast in 2021 is 1.5 billion yuan ~ 1.6 billion yuan, and the average net profit in the three years from 2019 to 2021 is 602 million yuan ~ 636 million yuan;

(2) Shanxi Coking Co.Ltd(600740) (600740) the net profit in 2019 is 474 million yuan, the net profit in 2020 is 1.097 billion yuan, the net profit announced according to the performance forecast in 2021 is 1.222 billion yuan ~ 1.284 billion yuan, and the average net profit in the three years from 2019 to 2021 is 931 million yuan ~ 952 million yuan;

(3) Jizhong Energy Resources Co.Ltd(000937) (000937) the net profit in 2019 is 783 million yuan, the net profit in 2020 is 786 million yuan, the net profit announced according to the performance forecast in 2021 is 2.680 billion yuan ~ 3.070 billion yuan, and the average net profit in the three years from 2019 to 2021 is 1.416 billion yuan ~ 1.546 billion yuan.

The overall performance of coal coke industry in 2021 is more outstanding than that in previous years. The average net profit of the company in the last three years is much higher than the net profit of the company in 2019 and 2020. On this basis, the performance growth of 5% and 10% has far exceeded the performance level of the company in 2019 and 2020.

Data source: wind data can be seen from the trend of coal market price. Due to market changes, the Chinese market price of main coking coal and thermal coal rushed to a relatively high level in the third quarter of 2021. In the fourth quarter of 2021, the state carried out strong regulation and control on coal price, resulting in a significant adjustment of coal price, which affected the profits of relevant companies in the coal industry. From the long-term trend, in the future, with the requirements of double carbon economy and environmental protection, the overall price and environmental protection expenditure of coal and Coke will change, the cost may rise, and the price may fluctuate, so the impact on the company's profits is also uncertain.

To sum up, the performance assessment objectives for 2022 and 2023 are set based on the average net profit of the three years from 2019 to 2021, with a growth rate of no less than 5% and 10%, taking into account the company's performance in recent years, the trend of industry market price and the expected market environment, taking into account the sustained and steady growth of the company's performance and better stimulating the sense of responsibility and mission of the incentive objects, Fully mobilize their enthusiasm and creativity, which has scientific rationality and incentive effect.

It is hereby announced.

Shanxi Meijin Energy Co.Ltd(000723) board of directors February 7, 2022

- Advertisment -