1 Basic Requirements
1.1 In order to further improve the compensation management of Yueyang Xingchang Petrochemical Co., Ltd. (hereinafter referred to as "the Company"), the board of directors and senior management shall establish a scientific and effective compensation management system, which encourages the active participation of employees. Based on the company's operational benefits and in accordance with the "Company Law of the People's Republic of China" and the "Articles of Association of Yueyang Xingchang Petrochemical Co., Ltd.", this document is formulated to integrate the company's actual situation.
1.2 This system applies to all directors of the Company (including independent directors and representatives of employee shareholders) and senior management personnel (hereinafter referred to as "senior management"), as well as other personnel with relevant responsibilities.
1.3 The compensation management system for directors and senior management shall adhere to the following principles: