H&S Global implements a compensation philosophy of "role-based pay, performance-linked rewards, positive incentives, and pay-performance alignment," dedicated to establishing a fair, scientific, and sustainable income distribution system.

Market-Oriented Role Evaluation
The company professionally evaluates positions based on local market benchmarks, incorporating a strategic pay premium to ensure competitive compensation.

Total Compensation Structure
Our compensation system consists of five key components:

• Base Salary: Safeguards employees' basic living needs, reflecting the company's commitment to income stability.

• Position Pay: Corresponds to job responsibilities, workload complexity, and required skills, recognizing inherent role value.

• Grade Salary: Aligns with job grade levels, acknowledging comprehensive capabilities, qualifications, and long-term contributions.

• Performance Bonus: Variable compensation based on performance evaluation results, reinforcing achievement orientation and goal fulfillment.

• Benefits System: Comprehensive protection including statutory benefits, subsidies, and leave arrangements.

Motivational Mechanisms

• Long-term Incentives: Integrated into the performance management system to inspire high-potential talent toward sustained breakthrough achievements.

• Short-term Performance Agreements: Applied for new hires, startup units, and key-position successors to drive organizational vitality through phased goal challenges.

Guiding Principle
We maintain the income distribution principle of "contribution orientation, results-driven rewards, and compensation-outcome consistency," ensuring every employee's dedication and accomplishments receive full recognition within our compensation framework.