Management System for Compensation of Directors and Senior Management
(To be reviewed and approved by the Company's Shareholders' Meeting)
General Provisions
Article 1 To further improve the compensation management of directors and senior management of Julong Rope Co., Ltd. (hereinafter referred to as the "Company"), establish a scientific and effective incentive and restraint mechanism, and effectively mobilize the enthusiasm of the Company's directors and senior management to improve the Company's operational and management efficiency, this system is formulated in accordance with the "Company Law of the People's Republic of China," the "Code of Corporate Governance for Listed Companies," and other national laws, administrative regulations, and the "Articles of Association of Julong Rope Co., Ltd." (hereinafter referred to as the "Articles of Association"), taking into account the Company's actual situation.
Article 2 This system applies to all directors and senior management of the Company. Senior management refers to the Company's President, Vice Presidents, Board Secretary, and Chief Financial Officer.
Article 3 The compensation management system for the Company's directors and senior management adheres to the following principles: (1) Assessment shall be based on the principle of openness, fairness, and transparency, with scientific evaluation and strict implementation; (2) The compensation structure shall be consistent with the Company's long-term interests and development strategies; (3) The compensation level shall be consistent with the Company's industry, scale, and performance, while also considering market compensation levels; (4) Compensation payment shall be linked to assessment, rewards, and punishments, and linked to the Company's incentive mechanism; (5) Responsibilities, rights, and benefits shall be equal, and compensation shall be combined with the value of the position and the extent of responsibility undertaken.
The compensation of the Company's directors and senior management shall be adapted to market development, matched with the Company's operating performance and individual performance, and coordinated with the Company's sustainable development goals.
Management Structure
Article 4 The Remuneration and Appraisal Committee of the Board of Directors is a special working body established by the Board of Directors, responsible for formulating the compensation plan for directors and senior management, clarifying the basis for determining compensation and its specific composition. The compensation plan for directors shall be decided by the Shareholders' Meeting and disclosed. Any director shall recuse himself when the Board of Directors or the Remuneration and Appraisal Committee evaluates or discusses his remuneration.
The compensation plan for senior management shall be approved by the Board of Directors, explained to the Shareholders' Meeting, and fully disclosed.
In the event of company losses, the specific requirements for the linkage between the compensation of directors and senior management and performance shall be specifically stated in all stages of the review of their compensation.
Article 5 The Company's human resources and finance departments shall cooperate with the Board of Directors' Remuneration and Appraisal Committee in formulating and implementing the compensation plans for directors and senior management.