Bichamp Cutting Technology(Hunan) Co.Ltd(002843) : Announcement on the implementation of annual equity distribution in 2021

Securities code: Bichamp Cutting Technology(Hunan) Co.Ltd(002843) securities abbreviation: Bichamp Cutting Technology(Hunan) Co.Ltd(002843) Announcement No.: 2022016 Bichamp Cutting Technology(Hunan) Co.Ltd(002843)

Announcement on the implementation of annual equity distribution in 2021

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.

Special tips:

1. The total share capital of the company is 210000000 shares, of which 19954 shares in the special securities account for repurchase are not involved in this equity distribution. The actual number of shares involved in this distribution is 20998046 shares, and the total amount of actual cash dividends is 3149700690 yuan.

2. After the equity distribution plan is implemented, the cash dividend per 10 shares converted according to the total share capital of the company = the total actual cash dividend / the total share capital of the company × 10=31,49700690 ÷ 210000,000 × 10 = 1499857 yuan, that is, the cash dividend per share converted according to the total share capital of the company is 01499857 yuan; Ex right ex dividend reference price = closing price on the date of equity registration – 01499857 yuan / share.

Bichamp Cutting Technology(Hunan) Co.Ltd(002843) (hereinafter referred to as “the company” or “the company”) the 2021 annual equity distribution plan has been deliberated and approved by the 2021 annual general meeting of shareholders held on March 21, 2022. The equity distribution is hereby announced as follows:

1、 Profit distribution plan approved by the general meeting of shareholders

1. The profit distribution plan for 2021 approved by the company’s annual general meeting in 2021 is: Based on the total share capital on the equity registration date when the company implements the distribution plan in the future minus the total number of shares in the company’s special securities repurchase account, distribute cash dividends of 1.50 yuan (including tax) to all shareholders for every 10 shares, and do not transfer capital reserve to share capital or bonus shares. After the announcement of the company’s profit distribution plan and before its implementation, in case of any change in the company’s share capital and shares in the special account for repurchasing securities, the total share capital on the equity registration date minus the total number of shares in the special account for repurchasing securities of the company shall be taken as the base, according to the distribution proportion (cash dividend of 1.50 yuan (including tax) shall be distributed to all shareholders for every 10 shares, capital reserve shall not be converted into share capital, and bonus shares shall not be distributed.) The total amount of distribution shall be adjusted according to the principle of invariability.

2. The plan implemented this time is consistent with the distribution plan and its adjustment principles deliberated and adopted by the general meeting of shareholders of the company. 3. The implementation of the distribution plan has not been more than two months since it was considered and approved by the general meeting of shareholders.

4. As of the application date of equity distribution business (March 22, 2022), the company held 19954 shares in the special securities account for repurchase and did not participate in this equity distribution. In order to ensure the normal implementation of the equity distribution plan, the company promises that there will be no change in the shareholding of the company’s special repurchase account between the date of applying for dividend distribution business to China Securities Depository and Clearing Co., Ltd. Shenzhen Branch (hereinafter referred to as “China Securities Depository and Clearing Co., Ltd. Shenzhen Branch”) and the date of equity registration.

2、 Equity distribution scheme

The annual equity distribution plan of the company in 2021 is: Based on 20998046 shares of the company’s total existing share capital excluding 19954 repurchased shares, Distribute 1500000 yuan in cash to all shareholders for every 10 shares (tax included; after tax deduction, QFII, rqfii and individuals holding pre IPO restricted shares and securities investment funds will pay 1350000 yuan for every 10 shares; the individual dividend tax on post IPO restricted shares, equity incentive restricted shares and unlimited tradable shares will be levied at a differentiated tax rate, and the company will not withhold individual income tax temporarily. When individuals transfer shares, the tax payable will be calculated according to their holding period [note] ; After the bonus shares held by investors in the mainland and the shares of the fund held by investors in Hong Kong are subject to an unlimited tax rate of 10%. [Note: according to the principle of first in, first out, the shareholding period is calculated by the investor’s securities account. If the shareholding is within 1 month (including 1 month), RMB 0300000 will be paid for every 10 shares; if the shareholding is more than 1 month to 1 year (including 1 year), RMB 0150000 will be paid for every 10 shares; if the shareholding is more than 1 year, no tax will be paid.]

3、 Equity registration date and ex dividend date

The registration date of this equity distribution is March 29, 2022, and the ex right and ex interest date is March 30, 2022.

4、 Equity distribution object

The objects of this distribution are: all shareholders of the company registered in China Clearing Shenzhen Branch after the closing of Shenzhen Stock Exchange on the afternoon of March 29, 2022.

5、 Equity distribution method

1. The cash dividends of A-share shareholders entrusted by the company to CSDCC Shenzhen Branch will be directly transferred to their capital account through shareholder custody securities companies (or other custody institutions) on March 30, 2022. 2. The cash dividends of the following A-share shareholders shall be distributed by the company itself:

Serial number shareholder account number shareholder name

1 08 703 Changsha Zhengyuan Enterprise Management Co., Ltd

2 08502 Zoomlion Heavy Industry Science And Technology Co.Ltd(000157)

3 08 076 Bangzhong Investment Co., Ltd

4 08 331 Bichamp Cutting Technology(Hunan) Co.Ltd(002843) – Employee Stock Ownership Plan in 2021

During the application period of equity distribution business (application date: March 22, 2022 to registration date: March 29, 2022), if the cash dividend entrusted to China Clearing Shenzhen Branch is insufficient due to the reduction of shares in the securities account of the shareholders, all legal liabilities and consequences shall be borne by our company.

6、 Calculation principle and method of ex right and ex dividend price

Considering that the shares in the company’s special securities repurchase account will not participate in the annual equity distribution in 2021, the total amount of the company’s actual cash dividend = the total share capital actually participating in the distribution × Distribution ratio, i.e. 3149700690 yuan = 20998046 shares × 0.15 yuan / share. Since the company’s repurchased shares do not participate in dividends, after the implementation of this equity distribution, according to the principle of unchanged stock market value, the total share capital of the company remains unchanged before and after the implementation of equity distribution, and the proportion of total cash dividends allocated to each share will be reduced. Therefore, when calculating the ex right and ex dividend price after the implementation of this equity distribution, The cash dividend per share shall be calculated at 01499857 yuan / share (cash dividend per share = total cash dividend / total share capital, i.e. 01499857 yuan / share = 3149700690 yuan ÷ 210000000 shares).

To sum up, on the premise that the equity distribution scheme remains unchanged, the ex right and ex dividend price after the implementation of the annual equity distribution in 2021 shall be implemented in accordance with the above principles and calculation methods, that is, the ex right and ex dividend price after the implementation of the equity distribution = the closing price on the equity registration date – 01499857 yuan / share.

7、 Adjustment of relevant parameters

After the implementation of this equity distribution, the exercise price of the stock options involved in the company’s 2021 stock option incentive plan will be adjusted according to the adjustment methods and procedures specified in the company’s 2021 stock option incentive plan (Revised Draft). The company will perform the review procedures and information disclosure obligations of the adjustment in accordance with relevant regulations. Please pay attention to the company’s subsequent announcements for specific conditions.

8、 Advisory body:

Consulting address: room 3401, floor 34, building C, Kailin international, No. 53, Binjiang Road, Yuelu District, Changsha City, Hunan Province

Contact: Xie Yingbo, Tan Yongping

Tel: 073188059111

Fax: 073188051618

9、 Documents for future reference

1. Documents of the clearing company confirming the specific implementation time of the scheme;

2. Resolutions of the 16th meeting of the 5th board of directors; 3. Resolution of the 2021 annual general meeting of shareholders. It is hereby announced.

Bichamp Cutting Technology(Hunan) Co.Ltd(002843) board of directors March 24, 2022

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