Chapter 1 General Provisions
Article 1 To further improve the compensation management of directors and senior management of Tianjin Yiyi Health Products Co., Ltd. (hereinafter referred to as the "Company"), establish a scientific and effective incentive and restraint mechanism for compensation, improve the company's governance structure, and enhance the company's operating and management level, this system is formulated in accordance with the "Company Law of the People's Republic of China," "Corporate Governance Guidelines for Listed Companies," "Shenzhen Stock Exchange Stock Listing Rules," "Shenzhen Stock Exchange Listed Company Self-Regulatory Supervision Guidelines No. 1 - Normative Operation of Main Board Listed Companies," and other laws, regulations, normative documents, and the "Articles of Association of Tianjin Yiyi Health Products Co., Ltd." (hereinafter referred to as the "Articles of Association").
Article 2 This system applies to non-independent directors and senior management who receive compensation from the Company as stipulated in the "Articles of Association." Independent directors who receive allowances and other non-independent directors who do not receive compensation from the Company are not subject to this system. The standard for independent director allowances shall be formulated by the Board of Directors and submitted to the shareholders' meeting for deliberation in accordance with the relevant provisions of the "Administrative Measures for Independent Directors of Listed Companies." If the independent director allowance is the same as the standard in previous years, it does not need to be submitted to the Board of Directors and the shareholders' meeting for approval again.
Article 3 The Company's compensation system shall adhere to the following principles: (1) Principle of fairness and reasonableness: Compensation shall be commensurate with market development, matched with the company's operating performance and individual performance, and coordinated with the company's sustainable development. (2) Principle of unity of power and responsibility: Compensation level shall be matched with position responsibilities and obligations. (3) Principle of linking rewards and punishments: Compensation payment shall be linked to assessment, rewards and punishments, and the company's incentive mechanism.
Chapter 2 Management Structure
Article 4 The Compensation and Remuneration Committee of the Board of Directors of the Company shall assess and determine the compensation of directors and senior management in accordance with the "Working Rules of the Compensation and Remuneration Committee of the Board of Directors of Tianjin Yiyi Health Products Co., Ltd."