Compensation Management System for Directors and Senior Management
Chapter 1 General Provisions
Article 1 To regulate the compensation management of directors and senior management of Nanchang Mining Machinery Group Co., Ltd. (hereinafter referred to as the "Company"), establish a scientific and effective incentive and restraint mechanism, effectively mobilize the enthusiasm of directors and senior management, and improve the company's operational and management efficiency, this Compensation Management System is formulated in accordance with the "Company Law of the People's Republic of China" (hereinafter referred to as the "Company Law"), the "Corporate Governance Guidelines for Listed Companies," and other relevant laws, regulations, and the "Articles of Association of Nanchang Mining Machinery Group Co., Ltd."
Article 2 Directors applicable to this system refer to all members of the Board of Directors during the period this system is in effect. Company directors are composed of non-independent directors and independent directors.
Article 3 Senior management personnel applicable to this system include the President, (Executive) Vice Presidents, Chief Financial Officer, Secretary of the Board, and other senior management personnel appointed or confirmed by the Board of Directors.
Article 4 The compensation of directors and senior management shall be linked to the company's operating performance and shareholder interests, ensuring the company's stable development and conforming to market value laws. The compensation system follows the following principles: (1) The principle that the compensation provided by the company is competitive compared to the income levels of equivalent positions in the market; (2) The principle of distribution according to work and the combination of responsibility, rights, and benefits; (3) The principle of linking compensation to the company's benefits and work objectives; (4) The principle of combining short-term and long-term incentives; (5) The principle of openness, fairness, and transparency; (6) The principle of reflecting both incentives and restraints, and equal rewards and punishments, with compensation issuance linked to performance evaluation and rewards and punishments.