Chapter 1 General Provisions
Article 1 To further improve the compensation management of directors and senior management of Zhejiang Wanliyang Co., Ltd. (hereinafter referred to as the "Company"), establish a scientific and effective incentive and restraint mechanism, fully mobilize the enthusiasm, initiative, and creativity of the Company's directors and senior management, and promote the healthy and sustainable development of the Company, this system is formulated 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 Stock Listing Rules No. 1 - Normative Operation of Main Board Listed Companies," and other relevant laws, regulations, normative documents, and the "Articles of Association of Zhejiang Wanliyang Co., Ltd." (hereinafter referred to as the "Articles of Association"), combined with the actual situation of the Company.
Article 2 This system applies to the following personnel: (1) Company directors, including independent directors, non-independent directors (including employee representative directors); (2) Company senior management personnel, including the Company's President, Vice Presidents, Secretary of the Board, Chief Financial Officer, and other senior management personnel recognized by the "Articles of Association."
Article 3 The compensation management system for the Company's directors and senior management shall adhere to the following principles: (1) The principle of reflecting income levels consistent with the Company's scale and performance, and in line with external compensation levels; (2) The principle of reflecting the Company's long-term interests, consistent with the goal of the Company's sustained and healthy development; (3) The principle of emphasizing both incentives and restraints, and balancing rewards and punishments, with compensation issuance linked to performance evaluation and rewards and punishments.