002056SZSE

Compensation Management System for Directors and Senior Management

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This document outlines the compensation system for directors and senior management of Hengdian Group DMEGC Co., Ltd. It details the principles of compensation, the composition of remuneration, performance evaluation procedures, and adjustment mechanisms. The system aims to align compensation with company performance, strategic goals, and market conditions, ensuring effective incentives and constraints.

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Hengdian Group DMEGC Co., Ltd. Compensation Management System for Directors and Senior Management

Chapter 1 General Provisions

Article 1 To further improve the compensation management of directors and senior management of Hengdian Group DMEGC Co., Ltd. (hereinafter referred to as the "Company"), establish a scientific and effective incentive and restraint mechanism, effectively mobilize the work enthusiasm of the Company's directors and senior management, and enhance the Company's operational and management efficiency, this system is formulated in accordance with relevant national laws, administrative regulations, departmental rules, normative documents, and the Articles of Association of Hengdian Group DMEGC Co., Ltd. (hereinafter referred to as the "Articles of Association").

Article 2 Directors and senior management applicable to this system include: the Chairman, General Manager, Deputy General Managers, Secretary of the Board, Chief Financial Officer, and other personnel as stipulated in the "Articles of Association".

Article 3 The principles for determining the compensation of the Company's directors and senior management shall be: fairness and justice, compensation based on position, linkage with performance, combination of short-term and long-term incentives, and combination of incentives and restraints.

Article 4 The compensation of the Company's directors and senior management shall be based on the Company's scale and performance. Comprehensive assessment shall be conducted based on the achievement of the Company's operating plan and the responsibilities and objectives of their respective roles to determine the annual compensation income.

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