According to the "Articles of Association," "Rules of Procedure for Board Meetings," "Working Rules of the Nomination and Remuneration Assessment Committee of the Board of Directors," and other relevant company regulations, combined with the actual situation of the company's operational scale and referencing the compensation levels in the industry and surrounding areas, the following remuneration plan for directors and senior management personnel for the year 2026 has been formulated based on the proposal from the company's Board of Directors' Nomination and Remuneration Assessment Committee and actual circumstances:
2026 Annual Remuneration Plan for Directors and Senior Management Personnel is as follows: I. Applicable Objects of This Proposal Company Directors and Senior Management Personnel . II. Applicable Duration of This Proposal From January 1, 2026, to December 31, 2026 III. Remuneration Standards
- Remuneration for Company Directors Non-independent Directors : Non-independent directors who hold specific operational positions in the company will receive remuneration according to the salary standards of their respective positions, and no additional director allowances will be provided. External non-independent directors who do not hold positions in the company will not receive remuneration or director allowances. Independent Directors: The remuneration for independent directors is a fixed remuneration system of RMB 86,000 per year (before tax), paid in a lump sum annually.
- Remuneration for Senior Management Personnel The remuneration for senior management personnel consists of basic remuneration and performance remuneration, where performance remuneration should generally account for no less than fifty percent of the total of basic and performance remuneration. Basic Remuneration: Determined based on the main scope, responsibilities, importance of the management positions of senior management personnel, and the remuneration levels of related positions in other relevant enterprises for the annual basic pay. Performance Remuneration: Linked to the company's performance management system and the company's annual operational performance, distributed at year-end based on the assessment results from the Nomination and Remuneration Assessment Committee of the Board of Directors. IV. Other Provisions
- The remuneration for company directors and senior management personnel is all pre-tax amounts. The company will deduct personal income tax, social insurance fees, and other expenses from wages and bonuses according to national and company regulations, and the remaining amount will be paid to individuals;
- If company directors and senior management personnel leave due to re-election, resignation during their term, or other reasons, remuneration will be calculated and paid based on their actual term and performance;
- The remuneration in this plan does not include equity incentive plans, employee stock ownership plans, and other long-term incentive mechanisms approved separately by the shareholders' meeting;
- The company shall conduct performance evaluations based on audited financial data and determine a certain proportion of performance remuneration to be paid after the annual report disclosure and performance evaluation;
- If the company restates financial reports due to financial fraud or other misstatements, it shall promptly reassess the performance remuneration and medium-to-long-term incentive income of directors and senior management personnel and recover any excess payments accordingly.
- During their tenure, if any of the following situations occur, the company may withhold performance remuneration or allowances: (1) Being publicly reprimanded by the stock exchange or declared an inappropriate candidate; (2) Being administratively punished by the China Securities Regulatory Commission for major violations; (3) Severely harming the interests of the company; (4) Other situations recognized by the Board of Directors or shareholders' meeting as serious violations of company regulations.