Compensation Management System for Directors and Senior Management
(Formulated in April 2026)
Chapter 1 General Provisions
Article 1 To adapt to the sustainable development needs of Shenzhen Deren Electronics Co., Ltd. (hereinafter referred to as the "Company"), establish and improve the incentive and restraint mechanism for directors and senior management, stimulate their enthusiasm and creativity in enhancing company value, ensure the realization of the Company's strategic goals and operating plans, and in accordance with the "Company Law of the People's Republic of China," "Corporate Governance Guidelines for Listed Companies," and other relevant laws, regulations, departmental rules, other normative documents, and the "Articles of Association," and in combination with the Company's actual situation, this system is hereby formulated.
Article 2 This system applies to the Company's directors and senior management, as follows: (1) Directors, including non-independent directors (including employee directors) and independent directors; (2) Senior management refers to the Company's General Manager (President), Deputy General Manager (Vice President), Chief Financial Officer, Secretary of the Board of Directors, and other senior management personnel identified by the "Articles of Association."
Article 3 The principles for determining the compensation management system are as follows: (1) Compliance Principle: Strictly abide by national laws, regulations, and securities regulatory requirements, and meet the requirements of the "Articles of Association." (2) Performance-Oriented Principle: Compensation levels are closely linked to the Company's operating performance and individual performance, achieving a balance between incentives and contributions. (3) Market Matching Principle: Refer to the compensation levels of comparable listed companies in the industry, region, and scale to ensure the market competitiveness of the compensation system. (4) Sustainable Development Principle: Compensation determination considers both the Company's short-term operating goals and long-term strategic development, balancing the interests of shareholders, the Company, and directors and senior management to avoid short-term behavior. (5) Incentive and Restraint Principle: Compensation is linked to performance appraisal, rewards and punishments, and the incentive mechanism.