Group 1 - The board of directors of Qinghai Jinrui Mining Development Co., Ltd. held its 8th meeting of the 10th session on January 26, 2026, to discuss various proposals [2][3] - The meeting was attended by all 8 directors, including independent director Mr. Tong Chenglu via video [2][5] - The board approved the appointment of Ms. Meng Li as the new financial officer, effective immediately, following the resignation of Mr. Zheng Yonglong [4][16] Group 2 - The board decided to continue implementing the managerial term system and contractual management to enhance market-oriented operational mechanisms [6][7] - A comprehensive risk assessment report for 2026 was approved, identifying major risks and proposing preventive measures [8][9] - The board approved the proposal for the disposal of fixed assets by its subsidiary, Qinglong Strontium Salt, due to obsolescence and high maintenance costs [10][11] Group 3 - The fixed assets to be scrapped have an original value of 9.4868 million yuan and a net value of 1.6062 million yuan, which is expected to impact the company's 2025 profits by the same net value [20][21] - The decision to scrap these assets is aimed at optimizing resource utilization and improving asset operational efficiency [21][22] - The proposal for asset disposal was reviewed and approved by the board's audit committee prior to the board meeting [22][23]

Core Viewpoint - The board of directors of Zhongji Health Industry Co., Ltd. has made several important decisions during its 16th meeting of the 10th session, including the approval of the 2025 semi-annual report and various management and governance measures [1][2][3] Group 1: Meeting Resolutions - The board unanimously approved the 2025 semi-annual report with a voting result of 9 votes in favor, 0 against, and 0 abstentions [1] - The board approved the adjustment of the members of various specialized committees, with the same voting result of 9 votes in favor, 0 against, and 0 abstentions [1] - The board approved the establishment of a "Management Measures for Professional Managers" with unanimous support [2] - The board approved the establishment of a "Managerial Tenure and Contractual Management Measures" with unanimous support [2] - The board approved the proposal to renew the accounting firm with unanimous support [2] - The board approved the proposal for the subsidiary Hongse Tomato to dispose of part of its fixed assets with unanimous support [2] - The board approved the expected related party transactions for 2025, with 6 votes in favor, 0 against, and 0 abstentions, while related directors abstained from voting [2] - The board approved the notice for the 2025 fourth shareholders' meeting with unanimous support [3]

Core Viewpoint - The company aims to implement a managerial tenure system and contractual management to enhance operational efficiency and align with market-oriented reforms, ensuring high-quality development through improved governance and performance evaluation mechanisms [1][2]. Group 1: Overall Objectives - The overall goal is to establish a modern enterprise system that meets market economic requirements, enhances corporate governance, and strengthens the incentive and constraint mechanisms for the managerial team [1][2]. - The managerial tenure system and contractual management will be applied to senior management personnel, including the general manager, deputy general managers, and other senior management as defined by the company's articles of association [1][2]. Group 2: Basic Principles - The principles include adherence to party leadership, market-oriented selection, contractual management, a balance of incentives and constraints, goal orientation, differentiated assessment, and a focus on reform and development [2][3][4]. - The company emphasizes the importance of effective communication with managerial personnel during the establishment of performance indicators and assessment processes to ensure fairness and motivation [5]. Group 3: Management Authority and Responsibilities - The company’s party committee is responsible for reviewing the appointment and assessment of managerial personnel, while the board of directors is tasked with establishing and implementing the tenure and contractual management system [6][7]. - The board can delegate authority to the chairman and general manager for signing contracts and performance responsibility documents without requiring further board approval [6][7]. Group 4: Selection Criteria - Managerial personnel must align with the party's core leadership, possess strong responsibility, and have relevant experience in large or medium-sized enterprises [12][13]. - Specific disqualifications for managerial positions include previous leadership failures, significant losses, or poor performance evaluations [12][13]. Group 5: Tenure Management - The tenure for senior management is set at three years, with the possibility of extension based on performance and company needs [13][14]. - Upon reaching retirement age, managerial personnel will generally not be reappointed, although they may serve in advisory roles if necessary [14][15]. Group 6: Contractual Management - Contracts will include performance responsibility documents that outline specific performance targets and assessment criteria, ensuring accountability [14][15]. - The company will establish a clear structure for remuneration, linking it to performance outcomes and ensuring that salary adjustments are based on market comparisons [16][17]. Group 7: Performance Assessment - Performance assessments will be conducted annually and at the end of each tenure, with results categorized into five levels from A (excellent) to E (unsatisfactory) [22][23]. - The assessment results will directly influence the remuneration and potential reappointment of managerial personnel [22][23]. Group 8: Exit Management - Conditions for mandatory exit include failure to meet performance benchmarks, disciplinary violations, or significant decision-making errors leading to financial losses [29][30]. - Other forms of exit include reaching retirement age, non-renewal of contracts, or personal reasons affecting job performance [30][31].

Core Viewpoint - The company has established a management system for the managerial team that emphasizes a fixed term and contractual management to enhance accountability and performance evaluation in line with national and local reforms [1][2]. Group 1: Purpose and Scope - The purpose of the system is to implement national and local reforms in state-owned enterprises, ensuring that managerial members can exercise their rights and responsibilities effectively [1]. - The system applies to the headquarters and its subsidiaries, covering senior management roles such as the president, vice presidents, financial officers, and chief engineers [1]. Group 2: Principles of Management - The management system adheres to principles such as the leadership of the Party, contractual management, differentiated management, and a balance of rights and responsibilities [2]. - The contractual management principle involves setting clear performance targets and responsibilities through signed agreements [2]. Group 3: Term and Contractual Management - The term of management is generally set at three years, with reappointment procedures required upon term expiration [2][3]. - Contracts must clearly define roles, responsibilities, performance indicators, and conditions for termination [2][3]. Group 4: Performance Assessment - Performance assessment includes both annual and term evaluations, with a minimum passing score of 70 out of 100 for annual assessments [4]. - The assessment criteria combine quantitative and qualitative measures, ensuring that individual performance aligns with company goals [4]. Group 5: Compensation Structure - The compensation for managerial members consists of a base salary, performance-based salary, and other incentives [5]. - Performance-based salaries are linked to the results of annual assessments, with no guaranteed minimum [5]. Group 6: Dismissal and Resignation Procedures - Dismissal can occur if performance metrics are not met or if there are significant leadership failures [7][8]. - Resignation requests must be approved by the board and cannot be submitted under certain conditions, such as ongoing critical projects [8].