Certain A Shares of Zkteco Co., Ltd. are subject to a Lock-Up Agreement Ending on 17-AUG-2023. These A Shares will be under lockup for 372 days starting from 10-AUG-2022 to 17-AUG-2023.

Details:
The controlling shareholder Shenzhen ZK Times Investment Co., Ltd promised that within 36 months since the date of listing of the present shares, there will not be no transfers nor entrustment of shares to any third party nor repurchase by the Company. If, within 6 months after the issuer's listing, the closing price of the shares is lower than issuance price for 20 consecutive trading days or if trading price is lower than issuance price after 6 month from listing, lock-up period will be automatically extended for another 6 months. If there is any case of dividends, bonus shares, capitalization of capital reserve and other similar cases, issue price will be adjusted according to ex-dividend and ex-interests.

Actual controller Che Quanhong promised that within 36 months since the date of listing of the present shares, there will not be no transfers nor entrustment of shares to any third party nor repurchase by the Company. If, within 6 months after the issuer's listing, the closing price of the shares is lower than issuance price for 20 consecutive trading days or if trading price is lower than issuance price after 6 month from listing, lock-up period will be automatically extended for another 6 months. If there is any case of dividends, bonus shares, capitalization of capital reserve and other similar cases, issue price will be adjusted according to ex-dividend and ex-interests. After the expiry of the lock-up period (including the extended lock-up period), during the time serves as the company director, supervisor and senior manager, the party promise that yearly transfer of shares made by him/her will not exceed 25% of the holding.

Dongguan Lixin Investment Partnership (Limited Partnership) promised within 36 months from the date of the initial public offering and listing of the Company, it will not transfer or entrust others to manage the company?s shares that have been issued.

Shenzhen Elite Shijun Investment Enterprise (Limited Partnership), Shenzhen Elite Heyi Investment Enterprise (Limited Partnership), Shenzhen Elite Lixin Consulting Enterprise (Limited Partnership), Shenzhen Elite Qianli Investment Consulting Enterprise (Limited Partnership) promised that for the shares they got from capital increase 6 months before the IPO, they will not transfer or entrust within 3 years from the date of completion of the aforementioned capital increase industrial and commercial registration procedures nor repurchase by the issuer.

Qingdao Huaxin Zhongxiang Equity Investment Center (Limited Partnership), Shenzhen Fuhai Junyong No. 1 Venture Capital Enterprise (Limited Partnership), Yiwu Huaxin Vision Venture Capital Center (Limited Partnership) promised that if the shares they got from the capital increase completes the relevant industrial and commercial changes within 6 months from the date of the issuer?s initial public offering of stocks, they will not transfer or entrust within 3 years from the date of completion of the aforementioned capital increase industrial and commercial registration procedures nor repurchase by the issuer; if more than 6 months, then the lock up period is 1 year.

The company?s directors (except independent directors), supervisors, and senior management promised that after the expiry of the lock-up period (including the extended lock-up period), during the time serves as the company director, supervisor and senior manager, the party promise that yearly transfer of shares made by him/her will not exceed 25% of the holding. If, within 6 months after the issuer's listing, the closing price of the shares is lower than issuance price for 20 consecutive trading days or if trading price is lower than issuance price after 6 month from listing, lock-up period will be automatically extended for another 6 months. If there is any case of dividends, bonus shares, capitalization of capital reserve and other similar cases, issue price will be adjusted according to ex-dividend and ex-interests.

Shenzhen Elite Shijun Investment Enterprise (Limited Partnership), Shenzhen Elite and Yi Investment Enterprise (Limited Partnership), the company?s holdings of the Company?s shares are unlocked in four batches. The amount of each batch unlocked is one-fourth of the company?s holding of the Company?s shares and this unlocking will take place within one year, two years, three years and four years from the date of listing. For the unlocked shares involved in the aforementioned lock-up period arrangement, the company does not transfer or entrust others to manage the shares issued by the Company before the company?s public offering, nor does the Company repurchases such shares. Shenzhen Elite Qianli Investment Consulting Enterprise (Limited Partnership), Shenzhen Elite Lixin Consulting Enterprise (Limited Partnership), the company?s holdings of the Company?s shares are unlocked in four batches. The amount of each batch unlocked is one-fourth of the company?s holding of the Company?s shares and this unlocking will take place within one year, two years, three years and four years from the date of listing. For the unlocked shares involved in the aforementioned lock-up period arrangement, the company does not transfer or entrust others to manage the shares issued by the Company before the company?s public offering, nor does the Company repurchases such shares.

The company?s senior management and core employees intend to participate in the strategic placement of this issuance, and the placement amount shall not exceed 10.00% of the amount of the issuance, i.e. 3.71 million shares. Lock up period is 12 months.