Management System for Remuneration of Directors and Senior Management
(To be reviewed and approved by the Company's 2025 Annual Shareholders' Meeting)
Chapter 1 General Provisions
Article 1 To regulate the remuneration management of directors and senior management of Sichuan Development Long March Co., Ltd. (hereinafter referred to as the "Company"), establish a scientific and effective incentive and restraint mechanism, and in accordance with the "Company Law of the People's Republic of China," the "Securities Law of the People's Republic of China," the "Corporate Governance Guidelines for Listed Companies," the "Articles of Association," and other relevant regulations and reform requirements for the distribution system of state-owned enterprises, this system is formulated based on the Company's actual situation.
Article 2 This system applies to the Company's directors and senior management as defined in the "Articles of Association." The term "principal responsible person of the enterprise" as used in this system refers to the Company's Chairman and President, and other senior management personnel refer to the enterprise's deputy responsible persons.
Article 3 The remuneration management of the Company's directors and senior management adheres to the following principles: (1) Uphold value orientation. Based on the Company's functional positioning and its main business relevance, combined with enterprise scale, development stage, operating performance goals, and market remuneration levels, reasonably determine the remuneration levels for directors and senior management. (2) Uphold efficiency orientation. Fully leverage the guiding role of remuneration distribution, closely link remuneration distribution with company performance and individual performance, implement differentiated remuneration, and achieve "performance increases, remuneration increases; performance decreases, remuneration decreases." (3) Uphold internal fairness orientation. The increase and decrease in remuneration for directors and senior management are linked to the increase and decrease in the average wage of employees, forming a reasonable income distribution relationship. Establish and improve a process control and supervision and punishment mechanism to regulate the distribution order.
Chapter 2 Management Structure
Article 4 The Remuneration and Assessment Committee of the Company's Board of Directors is responsible for formulating the remuneration plans for directors and senior management. The remuneration plans shall clearly define the basis for determining remuneration and its specific composition.
The remuneration plan for the Company's directors shall be implemented after approval by the Shareholders' Meeting. When the Board of Directors or the Remuneration and Assessment Committee evaluates individual directors or discusses their remuneration, such directors shall recuse themselves. The remuneration plan for the Company's senior management shall be approved by the Board of Directors, explained to the Shareholders' Meeting, and fully disclosed.
Article 5 The Company's Human Resources and Finance departments shall cooperate with the Remuneration and Assessment Committee of the Board of Directors in the implementation of the remuneration plans for the Company's directors and senior management.