Compensation Management System for Directors and Senior Management

Chapter 1 General Principles

Article 1

To improve the compensation management for the directors and senior management of Shenzhen Xingyuan Material Technology Co., Ltd. (hereinafter referred to as "the Company"), and to establish a scientific and effective incentive and restraint mechanism that effectively motivates the work enthusiasm of the Company's directors and senior management, thereby enhancing the operational management efficiency of the Company, this system is formulated in accordance with the "Company Law of the People's Republic of China," "Guidelines for Articles of Association of Listed Companies," "Corporate Governance Code for Listed Companies," and other laws, administrative regulations, departmental rules, normative documents, and the provisions of the "Articles of Association of Shenzhen Xingyuan Material Technology Co., Ltd." (hereinafter referred to as "the Articles of Association").

Article 2

This system applies to the directors and senior management as stipulated in the Articles of Association.

Article 3

The distribution of compensation for directors and senior management follows these basic principles:

1. The principle of linking company performance with compensation.
2. The principle of distribution according to labor and matching responsibilities, rights, and interests.
3. The principle of combining compensation with the long-term interests of the company.
4. The principle of transparency, fairness, and openness in compensation standards.