Chapter One General Principles
Article 1
To establish a sound salary determination and normal growth mechanism that aligns with the labor market, links to the company's economic benefits and labor productivity, enhances corporate vitality and competitiveness, and promotes high-quality development, this system is formulated in accordance with the Company Law of the People's Republic of China, the Securities Law of the People's Republic of China, the Guidelines for Corporate Governance of Listed Companies, and the Articles of Association, among other relevant regulations, combined with the company's actual situation.
Article 2
This system applies to the company's headquarters and all wholly-owned and holding subsidiaries included in the consolidated financial statements.
Article 3
The term "salary" in this system refers to the wages, bonuses, allowances, subsidies, medium- and long-term incentive income, and other legally stipulated labor remuneration paid by the company to directors, senior management, employees, and other personnel included in the company's salary management scope.
Article 4
The company's salary management follows these principles:
- Adhering to market levels, salary levels should match job value, responsibilities, and performance contributions.
- Coordinating with the company's operational performance, individual performance, and sustainable development.
- Balancing incentives and constraints, considering both efficiency and fairness.
- Adhering to total salary budget constraints, with salary distribution subject to the company's total salary budget management.
- Prioritizing key positions, frontline production, urgently needed talents, and high-skilled personnel to promote the improvement of ordinary employees' salary levels.
Chapter Two Management Responsibilities
Article 5
The company's shareholders' meeting is responsible for reviewing and approving the basic system of salary management and deciding on the salary plan for directors.
Article 6
The company's board of directors is responsible for reviewing the basic system of salary management and significant matters, and deciding on the total salary plan and salary plan for senior management.
Article 7
The board of directors' nomination and compensation committee should draft proposals and recommendations for the above matters for board review and report to the board.
Article 8
The company's general manager's office, coordinating with the human resources, finance, and industry departments, is responsible for the specific implementation of this system, including salary budget preparation, calculation, distribution, settlement, statistical analysis, and daily management.
Article 9
Each subsidiary should establish and improve its salary management mechanism according to this system and its actual situation, implementing the company's salary management and total salary management requirements.
Chapter Three Total Salary Management
Article 10
The company establishes a total salary determination mechanism. Total salary management should align with the company's economic benefits, labor productivity, labor cost input-output efficiency, and salary payment capacity.
Article 11
The company's total salary is subject to budget management and settlement management. The preparation, execution, adjustment, and settlement of the total salary budget should generally follow the relevant requirements of state-owned assets management, combined with the company's operational performance, industry levels, development stages, and labor cost bearing capacity.