Limin Group Co., Ltd.
Compensation Management System for Directors and Senior Management
Chapter 1 General Provisions
Article 1 To regulate the compensation management of directors and senior management of Limin Group Co., Ltd. (hereinafter referred to as the "Company"), improve the Company's compensation management system, establish a scientific and effective incentive and restraint mechanism, better stimulate the work enthusiasm of the Company's directors and senior management, and improve the Company's operational and management efficiency, this system is formulated in accordance with the "Company Law of the People's Republic of China," the "Corporate Governance Guidelines for Listed Companies," and other relevant laws and regulations, as well as the "Articles of Association of Limin Group Co., Ltd." (hereinafter referred to as the "Articles of Association").
Article 2 The scope of application of this system covers the Company's directors and senior management, specifically including: (1) Directors: including independent directors and non-independent directors (including employee representative directors); (2) Senior Management: including the Company's President, Vice Presidents, Board Secretary, Chief Financial Officer, and Chief Engineer.
Article 3 The compensation of the Company's directors and senior management shall be commensurate with market development, matched with the Company's operating performance and individual performance, and coordinated with the Company's sustainable development. The compensation system follows the following principles: (1) Principle of determining compensation based on position: Compensation shall reflect the value of each position to the Company and embody the principle of consistency between responsibility, rights, contribution, and benefits; (2) Principle of linking compensation levels to the Company's goals and efficiency; (3) Principle of performance appraisal; (4) Principle of balancing incentives and restraints, and equal rewards and punishments.
Chapter 2 Compensation Management Organization
Article 4 The compensation plan for the Company's directors shall be decided by the shareholders' meeting and disclosed. When the board of directors or the compensation and audit committee evaluates or discusses the remuneration of a director, that director shall recuse himself. The compensation plan for senior management shall be approved by the board of directors, explained to the shareholders' meeting, and fully disclosed.