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Management System for Remuneration of Directors and Senior Management

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This document outlines the remuneration management system for directors and senior management of Zhejiang Asia-Pacific Pharmaceutical Co., Ltd. It establishes principles for fair and performance-based compensation, including basic salary, performance bonuses, and long-term incentives. The system aims to align compensation with company performance, strategic goals, and market standards, with specific provisions for independent directors and disclosure requirements.

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Zhejiang Asia-Pacific Pharmaceutical Co., Ltd. Management System for Remuneration of Directors and Senior Management

Chapter 1 General Provisions

Article 1 To further improve the remuneration management of directors and senior management of Zhejiang Asia-Pacific Pharmaceutical Co., Ltd. (hereinafter referred to as the "Company"), establish a scientific and effective incentive and restraint mechanism, fully mobilize the work enthusiasm of the Company's directors and senior management, and enhance the Company's business operating efficiency and management level, 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," the "Shenzhen Stock Exchange Listed Company Self-Regulatory Supervision Guide No. 1 - Normative Operation of Main Board Listed Companies," and other laws, regulations, normative documents, and the "Articles of Association of Zhejiang Asia-Pacific Pharmaceutical Co., Ltd." (hereinafter referred to as the "Articles of Association"), and in conjunction with the Company's actual situation, this system is formulated.

Article 2 This system applies to the Company's directors and senior management as defined in the "Articles of Association."

Article 3 The remuneration management of the Company's directors and senior management shall adhere to the following principles: (1) Fairness principle: Reflecting the principle that income levels are consistent with the Company's scale and performance, while also considering market remuneration levels. (2) Unity of responsibility, rights, and interests principle: Reflecting that remuneration is commensurate with the value of the position and the extent of responsibilities undertaken. (3) Long-term development principle: Reflecting that remuneration is consistent with the Company's goal of sustainable and healthy development. (4) Emphasis on both incentives and restraints principle: Reflecting that remuneration is linked to performance appraisal, rewards and punishments, and the Company's incentive mechanism.

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Management System for Remuneration of Directors and Senior Management — Asia-Pacific Pharmaceuticals Co., Ltd. | SZSE Releases