Hubei Guochuang High-tech Materials Co., Ltd.
Compensation Management System for Directors and Senior Management
(April 2026)
Chapter 1 General Provisions
Article 1
To further improve the compensation management of directors and senior management of Hubei Guochuang High-tech Materials Co., Ltd. (hereinafter referred to as the "Company"), establish a scientific and effective incentive and restraint mechanism, fully mobilize their work enthusiasm and creativity, enhance the company's governance level and operating efficiency, in accordance with the "Company Law of the People's Republic of China," the "Corporate Governance Guidelines for Listed Companies," and other laws and regulations, as well as the "Articles of Association of Hubei Guochuang High-tech Materials Co., Ltd." (hereinafter referred to as the "Articles of Association"), and in combination with the actual situation of the Company, this system is formulated.
Article 2
This system applies to directors elected by the shareholders' meeting and senior management appointed by the board of directors. Among them, directors include independent directors, external directors (non-independent directors who do not hold other positions in the Company), and internal directors (directors who hold senior management positions or other full-time positions in the Company).
Article 3
The compensation management of the Company's directors and senior management follows the following principles: (1) Compensation levels shall be matched with the Company's scale and operating performance, while also considering industry compensation levels; (2) Compensation levels shall be matched with the value of the position and responsibilities; (3) Compensation shall be linked to performance appraisal and reward/punishment mechanisms, reflecting positive incentives and risk control; (4) The compensation system shall be coordinated with the Company's long-term development strategy to promote the Company's sustained and healthy development.