Wen's response to the letter of concern: the company's equity incentive plan does not exist...

After receiving the Shenzhen Stock Exchange's attention letter due to the stock incentive plan, on the evening of April 22, Wen's response to the Shenzhen Stock Exchange's attention letter stated that the third phase of equity incentives includes 9 Wen family members in compliance with the regulations, and the company has no insider trading.
Behavior
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Wen's members meet the requirements of equity incentives

On April 15, Wen's shares issued the "Draft of the Third Restricted Stock Incentive Plan", which plans to grant approximately 257 million restricted stocks to incentive objects at a price of 9.
26 yuan per share
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On April 20, the Management Department of the Shenzhen Stock Exchange’s Growth Enterprise Market issued a letter of concern to Wen's shares, asking Wen's share incentives including the rationality of Wen's family members, whether the performance evaluation indicators are in line with the actual situation of the company, and whether there is insider trading
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On April 22, Wen's shares replied to the Shenzhen Stock Exchange stating that the types of personnel motivated by this incentive plan mainly include directors, senior managers, business department executives, middle managers, grassroots managers, and core technical (business) talents
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The actual controllers of the company include Wen Zhifen, Wen Pengcheng, Wen Xiaoqiong, and Wen Junsheng, members of the board of directors.
One of the Wen family members, Sun Fen, and the children of other members Wen Jiaolong, Wen Bingwen, Wen Shuxian, and Chen Xiaoyun belong to middle-level managers or grass-roots managers.
Categories and related regulations
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At the same time, Wen's self-examination revealed that within 6 months before the public disclosure of the incentive plan draft, no insiders were found to use the inside information of the incentive plan to buy or sell stocks or to disclose the inside information of the incentive plan.
There was no inside information.
Trading behavior
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It will take 1 year for the recovery of pigs from slaughter

Regarding the rationality and optionality of the establishment of the performance appraisal targets for this incentive plan, Wen's shares stated that the relevant data forecasts are mainly based on historical data, current production and operation status, and market conditions in the next two years
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Wen's shares pointed out that on the basis of the above forecast, the target is set as "the total sales weight of livestock and poultry products in 2021 will increase by 10% compared with 2020, or the total operating income will increase by 8% compared with 2020; the second vesting period is 2022.
The total sales weight of livestock and poultry products increased by 40% compared with 2020, or the total operating income increased by 15% compared with 2020”, both slightly higher than the predicted value, making the assessment goal challenging, and the purpose is to stimulate the subjective initiative and creativity of the incentive objects
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In addition, Wen’s shares stated that the assessment setting of “80%≤the completion rate of the company’s performance indicators <100% can be attributed to 80% restricted stocks” is due to the large volatility of the livestock breeding industry.