Kunyao Group’s announcement on the remuneration plan for directors and senior managers in 2026
Securities code: 600422 Securities abbreviation: Kunyao Group Announcement number: 2026-025
Kunyao Group Co., Ltd.
Announcement on the 2026 Remuneration Plan for Directors and Senior Management
The company's board of directors and all directors guarantee that the contents of this announcement do not contain any false records, misleading statements or major omissions, and assume legal responsibility for the authenticity, accuracy and completeness of its contents.
Kunming Pharmaceutical Group Co., Ltd. (hereinafter referred to as the "Company") held the 19th meeting of the 11th Board of Directors of the company on June 8, 2026, and reviewed and approved the "Proposal on the Company's 2026 Remuneration Plan for Directors and Senior Management Personnel". In order to further improve the corporate governance structure, strengthen the incentive and restraint mechanism that unifies rights, responsibilities and interests, and corresponds to rewards and risks, and promotes the company's long-term sustainable development, in accordance with the "Company Law of the People's Republic of China", "Listed Company Governance Guidelines" and other relevant laws and regulations, as well as the "Articles of Association", "Company Remuneration Management System" and other relevant provisions, combined with the company's actual situation and with reference to industry and regional income levels, the 2026 remuneration plan for directors and senior managers was formulated. This plan still needs to be submitted to the company's shareholders' meeting for review. The details are as follows:
1. Applicable objects
Company directors and senior managers.
2. Applicable period
From the date of review and approval by the company's shareholders' meeting to the date of review and approval of the new remuneration plan.
3. Salary plan
(1) Directors’ remuneration plan
Independent directors: A fixed allowance system is implemented, and the allowance standard is 100,000 yuan (tax included) per person per year; directors can voluntarily give up or receive salary.
Non-independent directors: Non-independent directors who hold other positions in the company are remunerated in accordance with the company's relevant remuneration and assessment systems corresponding to their positions. They do not receive separate director's allowances for their directorships; non-independent directors who do not hold specific positions in the company do not receive remuneration in principle, and will no longer receive separate director's allowances (unless otherwise resolved by the shareholders' meeting).
(2) Executive compensation plan
The remuneration of senior management personnel consists of basic annual salary, performance annual salary, medium and long-term incentives, etc., of which performance annual salary and medium and long-term incentives are floating salaries. In principle, the proportion of performance annual salary shall not be less than 60% of the total basic annual salary and performance annual salary. The company's senior managers enjoy social insurance and other welfare benefits in accordance with relevant national department regulations and company systems. Any changes or other special circumstances not mentioned will be implemented after approval by the board of directors.
4. Other instructions
Directors’ allowances and basic annual salaries of senior managers are paid monthly.
The annual performance salary is based on the annual performance evaluation as an important basis for payment. At the same time, a deferred payment system for performance annual salary is established, and the current payment amount and the deferred payment amount are determined according to the corresponding proportion. The current payment amount is paid after the disclosure of the annual report and performance evaluation of the current year, and the deferred payment amount is paid after the expiration of the agreed time limit. Mid- and long-term incentives are implemented in accordance with relevant plan provisions, with performance evaluation as an important basis.
The company withholds and pays personal income tax and other statutory fees in accordance with the law.
The travel expenses of directors (including independent directors) to attend the company's board of directors and shareholders' meetings, as well as the expenses required to exercise their powers in accordance with the Articles of Association, will be reimbursed by the company.
If the company's directors and senior managers leave office due to reasons such as change of term, re-election, resignation during the term, etc., their remuneration will be calculated and paid based on their actual term of office.
Matters not covered in the above plan shall be implemented in accordance with the relevant national laws and regulations, normative documents and the "Articles of Association". If the above plan conflicts with national laws and regulations, normative documents or the "Articles of Association", the provisions of the relevant laws, regulations, normative documents and the "Articles of Association" in effect at that time shall be implemented.
Announcement is hereby made.
Board of Directors of Kunming Pharmaceutical Group Co., Ltd.
June 9, 2026