Cubic Pharmaceuticals: Senior Management Salary Management System (April 2026)

Remuneration Management System for Senior Management Hefei Cube Pharmaceutical Co., Ltd.

Senior management salary management system

Chapter 1 General Provisions

Article 1 In order to further improve the salary management of senior managers of Hefei Cube Pharmaceutical Co., Ltd. (hereinafter referred to as the "Company"), establish a scientific and effective incentive and restraint mechanism, effectively mobilize the enthusiasm of senior managers, and improve the company's operating and management efficiency, this system is formulated in accordance with the provisions of the Company Law of the People's Republic of China (hereinafter referred to as the "Company Law"), the Code of Governance for Listed Companies, the Stock Listing Rules of the Shenzhen Stock Exchange and other laws, regulations, normative documents and the Articles of Association.

Article 2 The term “senior management personnel” as used in this system refers to the company’s general manager, deputy general manager, board secretary, financial officer and other senior management personnel identified in the company’s articles of association.

If a company's senior managers concurrently serve as company directors, they will receive remuneration based on the management positions they hold and will no longer receive director's allowances separately.

Article 3 The company’s senior management remuneration system follows the following principles:

(1) The principle of fairness, the income level matches the company size, operating performance and personal performance, and is consistent with the market salary level;

(2) The principle of unity of responsibilities, rights and interests, and remuneration consistent with the value of the position and the performance of responsibilities and obligations;

(3) The principle of long-term development, and remuneration should be coordinated with the company’s sustainable and healthy development;

(4) The principle of equal emphasis on incentives and constraints reflects the linkage between salary payment and assessment, reward and punishment, and incentive mechanisms.

Chapter 2 Management Organization

Article 4 The remuneration plan for the company’s senior management personnel shall be formulated by the Remuneration and Assessment Committee of the Board of Directors, and shall clearly define the basis and specific composition of the remuneration. The senior management remuneration plan is reviewed and approved by the board of directors, explained to the shareholders' meeting, and disclosed.

Article 5 The Remuneration and Assessment Committee of the Company’s Board of Directors is responsible for formulating assessment standards for senior managers and conducting assessments. When the board of directors or the remuneration and appraisal committee evaluates individual senior managers or discusses their remuneration, the senior manager who is also a director shall recuse himself or herself.

Article 6 The company’s Human Resources Department, Finance Department, Securities Department and other relevant departments shall cooperate with the Remuneration and Assessment Committee to specifically organize the implementation of this system and complete the corresponding information disclosure work.

Chapter 3 Salary Standards and Payment

Senior management salary management system

Article 7 The company's senior managers implement an annual salary system, and their remuneration consists of basic salary, performance salary and medium- and long-term incentive income. In principle, the proportion of performance salary should not be less than 50% of the total basic salary and performance salary.

(1) Basic salary

Basic salary is the annual basic salary, which is paid monthly after the annual salary standard is determined according to the company's internal salary system. The determination of the basic salary level mainly takes into account the educational background, professional experience, working years, job position, nature of work, work content, responsibilities, risks, and market salary trends of senior managers.

(2) Performance pay

Performance remuneration is the remuneration obtained through comprehensive performance evaluation based on the company's performance achievement, senior managers' personal performance of duties and achievement of work goals.

(3) Medium and long-term incentives

Based on operating conditions and market changes, the company may adopt stock options, restricted stocks, employee stock ownership plans and other medium- and long-term incentives or rewards for senior managers. Specific plans will be separately stipulated in accordance with relevant laws and regulations.

(4) Rewards

Individual rewards can be given to senior managers who have outstanding annual performance or are under obviously high load or pressure. The reward standards will be implemented after approval by the chairman of the board.

Article 8 The remuneration of a company’s senior managers shall be consistent with market development, match the company’s operating performance and personal performance, and coordinate with the company’s sustainable development.

Companies should reasonably determine the salary distribution ratio between senior managers and ordinary employees based on factors such as industry level, development strategy, job value, etc., promote salary distribution to tilt toward key positions, production front lines, and urgently needed high-level, highly skilled talents, and promote an increase in the salary level of ordinary employees.

Article 9 The specific amount of the annual remuneration of senior management personnel shall be determined by the remuneration and assessment committee of the board of directors through annual assessment based on this system, the company's performance status, and the individual performance status, and shall be disclosed in the company's annual report.

Article 10 If the position of a company's senior management personnel changes or leaves office, remuneration shall be paid based on their actual tenure and performance assessment.

Article 11 If any of the following circumstances occurs to the company’s senior managers during their tenure, the company may stop payment or pursue performance remuneration:

Senior management salary management system

(1) Being publicly condemned or declared as an unfit candidate by the stock exchange;

(2) Being administratively punished by the securities regulatory agency or given party disciplinary and government sanctions by the disciplinary inspection and supervision department due to major violations of laws and regulations;

(3) Failure to perform duties diligently causes the company to suffer significant economic or reputational losses or seriously damages the interests of the company;

(4) Resigning, resigning or being dismissed without permission due to personal reasons;

(5) Other circumstances as stipulated by laws and regulations, or as determined by the company's board of directors to seriously violate the company's relevant regulations.

Article 12 The determination and payment of performance-based remuneration and medium- and long-term incentive income for the company’s senior managers shall be based on performance evaluation.

A certain percentage of performance-based remuneration for the company's senior managers is paid after the disclosure of the annual report and performance evaluation, which is based on audited financial data.

Article 13 If a company turns from profit to loss or its losses expand compared with the previous fiscal year, and the average performance remuneration of senior managers does not decrease accordingly, the reasons shall be disclosed. When a company suffers a loss, it should specifically explain whether the salary changes meet the performance linkage requirements at each stage of senior management salary review.

Article 14 When a company retrospectively restates its financial report due to financial fraud or other misstatements, it shall promptly reassess the performance compensation and medium- and long-term incentive income of senior managers and recover the excess payment accordingly.

If the company's senior managers violate their obligations and cause losses to the company, or are at fault for illegal activities such as financial fraud, capital misappropriation, and illegal guarantees, the company will reduce or stop paying unpaid performance remuneration and medium- and long-term incentive income based on the severity of the case, and fully or partially recover the performance remuneration and medium- and long-term incentive income that have been paid during the period when the relevant behavior occurred.

Chapter 4 Salary Adjustment

Article 15 The company's senior management compensation system should serve the company's development strategy and can be adjusted accordingly as the company's development and external operating conditions change.

Article 16 The basis for adjusting the salary of the company’s senior managers is:

(1) Salary changes in the same industry. Regularly collect and analyze market salary reports or salary data published by the same industry as a reference for the company's salary adjustments;

(2) Inflation level. Refer to the inflation level so that the actual purchasing power level of the salary does not decrease as a reference for the company's salary adjustment;

Senior management salary management system

(3) The company’s profitability;

(4) Organizational structure adjustment or personal position change.

Chapter 5 Supplementary Provisions

Article 17 If matters not covered by this system or relevant provisions are inconsistent with relevant laws, regulations, normative documents and the "Articles of Association", the provisions of the relevant laws, regulations, normative documents and the "Articles of Association" shall apply.

Article 18 This system is interpreted by the company's board of directors and will come into effect after being reviewed and approved by the board of directors. Amendments to this system will also come into effect after being reviewed and approved by the company's board of directors. The company's original "Senior Management Salary Management Plan" was abolished at the same time.

Hefei Cube Pharmaceutical Co., Ltd.

April 2026