17. SHARE BASED COMPENSATION

Share option plan (the “2016 Plan”)

On April 6, 2016, the shareholders and Board of Directors of the Company approved the 2016 Plan. Under the 2016 Plan, the maximum aggregate number of shares that may be issued shall not exceed 130,666,669. The terms of the options shall not exceed ten years from the date of grant. All share options to be granted under the 2016 Plan have a contractual term of six years and generally vest over 2 to 4 years in the grantee’s option agreement. The purpose of the 2016 Plan is to attract and retain exceptionally talented and qualified individuals, and to motivate them to exercise their best efforts on behalf of the Company through valuable incentives and awards. In 2024, the Company signed renewal agreements with employees whose contractual terms were expiring, extending the contractual terms by three years. As of June 30, 2026, all share awards for an aggregate of 130,666,669 ordinary shares have been granted and have vested pursuant to the 2016 Plan.

A summary of the employee equity award activity under the 2016 Plan is stated below:

	Number of options		Weighted- average exercise price		Weighted- average grant-date fair value		Weighted- average remaining contractual term		Aggregate intrinsic Value
			RMB		RMB		Years		RMB
Outstanding, December 31, 2025		35,000,000		0.06		0.05		—		—
Granted		—		—		—		—		—
Forfeited		—		—		—		—		—
Outstanding, June 30, 2026		35,000,000		0.06		0.05		—		—
Vested and expected to vest at June 30, 2026		35,000,000		0.06		0.05		—		—
Exercisable at June 30, 2026		35,000,000		0.06		0.05		—		—

Outstanding, December 31, 2024		49,270,000		0.06		0.06		1.1		—
Granted		—		—		—		—		—
Forfeited		—		—		—		—		—
Outstanding, June 30, 2025		49,270,000		0.06		0.06		0.7		—
Vested and expected to vest at June 30, 2025		49,270,000		0.06		0.06		0.7		—
Exercisable at June 30, 2025		49,270,000		0.06		0.06		0.7		—

The aggregate intrinsic value is calculated as the difference between the exercise price of the awards and the fair value of the underlying Ordinary Shares at each reporting date, for those awards that had exercise price below the estimated fair value of the relevant Ordinary Shares.

Share incentive plan (the “2025 Plan”)

On January 5, 2025, the shareholders and Board of Directors of the Company approved the 2025 Plan. Under the 2025 Plan, the maximum aggregate number of shares that may be issued shall not exceed 63,082,980. On April 27, 2025, the Company adopted the Amended and Restated 2025 Plan, pursuant to which the maximum aggregate number of Ordinary Shares available for grant of awards is increased to 192,502,980.

The terms of the options shall not exceed ten years from the date of grant. The purpose of the 2025 Plan is to selected directors, employees and other eligible persons to incentivize their performance and align their interests with the Company. Under the 2025 plan, restricted shares may be granted to staff members, consultants and non-employee directors.

A summary of the restricted share activities under the 2025 Plan is stated below:

	Number of shares			Weighted- average grant-date fair value
				RMB
Outstanding, December 31, 2025	—			—
Granted		72,000,000			0.09
Vested		(72,000,000	)		0.09
Outstanding, June 30, 2026		—			—

Total share-based compensation cost for the restricted shares amounted to RMB6,618 for the six months ended June 30, 2026. The Company determined the fair value of restricted shares based on its stock price on the date of grant.