002427SZSE

Compensation Management System for Directors and Senior Management

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This document outlines the compensation management system for directors and senior management of Zhejiang Youfu High-Tech Fiber Co., Ltd. It establishes principles for determining compensation based on performance, responsibilities, and market conditions, and details the roles of the compensation and assessment committee. The system aims to incentivize performance and ensure fair and transparent compensation practices.

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Compensation Management System for Directors and Senior Management

Chapter 1 General Provisions

Article 1 To further standardize the compensation management of directors and senior management of Zhejiang Youfu High-Tech Fiber Co., Ltd. (hereinafter referred to as "the Company"), establish and improve a scientific and effective incentive and restraint mechanism, fully mobilize the work enthusiasm and creativity of directors and senior management, improve the Company's operational and management efficiency, and promote the Company's sustained and healthy development. In accordance with the "Company Law," the "Guiding Principles for the Corporate Governance of Listed Companies," and other relevant laws and regulations, and in conjunction with the Company's actual situation, this Compensation Management System (hereinafter referred to as "this System") is formulated.

Article 2 Directors and senior management to whom this System applies include: (I) Directors: Non-independent directors, independent directors, and employee representative directors of the Company; (II) Senior Management: General Manager, Deputy General Managers, Chief Financial Officer, Board Secretary, and other senior management personnel.

Article 3 The compensation of the Company's directors and senior management shall be determined based on enterprise economic indicators and comprehensive management, taking into account the completion of the operating plan, the responsibilities of the supervised work and the completion of work objectives, and the individual's performance and development.

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