Shandong Zhongrui Industrial Development Co., Ltd. Management System for Compensation of Directors and Senior Management (April 2026 Revision)
Chapter 1 General Provisions
Article 1 To further improve the governance structure of Shandong Zhongrui Industrial Development Co., Ltd. (hereinafter referred to as the "Company"), establish a systematic management system for the compensation of directors and senior management, and in accordance with the "Company Law of the People's Republic of China," the "Code of Corporate Governance for Listed Companies," the "Administrative Measures for Independent Directors of Listed Companies," and other relevant laws and regulations, as well as the "Articles of Association of Shandong Zhongrui Industrial Development 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, specifically including the following personnel: (1) Directors: Refers to all members of the board of directors during the period of this system's implementation, including non-independent directors and independent directors. (2) Senior Management: Refers to the Company's President, Vice Presidents, Chief Financial Officer, and Secretary of the Board as stipulated in the "Articles of Association."
Article 3 The formulation of the compensation system for directors and senior management follows these principles: (1) Principle of Fairness: Reflects the principle that income levels are consistent with the Company's scale and performance, while also considering market compensation levels to maintain the Company's compensation competitiveness. (2) Principle of Unity of Responsibility, Rights, and Benefits: Reflects that compensation is commensurate with the value of the position and the extent of responsibilities and obligations fulfilled. (3) Principle of Long-Term Development: Reflects that compensation is consistent with the goal of the Company's sustained, stable, and healthy development. (4) Principle of Balancing Incentives and Restraints: Reflects that compensation is linked to performance appraisal and incentive mechanisms.