Chapter 1 General Principles
Article 1
To further improve the compensation constraint mechanism for directors and senior management of Shenzhen Kangguan Technology Co., Ltd. (hereinafter referred to as "the Company"), establish and enhance the compensation incentive plan for operators, maintain the stability of the core management team, effectively motivate the work enthusiasm of directors and senior management, improve the company's operational management level, and promote the healthy, sustainable, and stable development of the company, the Company has formulated this system in accordance with the relevant provisions of the Company Law of the People's Republic of China (hereinafter referred to as "the Company Law"), the Securities Law of the People's Republic of China, the Guidelines for the Governance of Listed Companies, the Management Measures for Independent Directors of Listed Companies, the Listing Rules of the Shenzhen Stock Exchange, the Self-Regulatory Guidelines No. 1 for Listed Companies on the Main Board of the Shenzhen Stock Exchange, and other relevant laws, administrative regulations, normative documents, and the Articles of Association of Shenzhen Kangguan Technology Co., Ltd. (hereinafter referred to as "the Articles of Association"), combined with the actual situation of the Company.
Article 2
This system applies to the directors and senior management of the Company. Directors include non-independent directors (including employee representative directors) and independent directors; senior management includes the general manager, deputy general managers, board secretary, financial officer, and other personnel as stipulated in the Articles of Association.
Article 3
The Company's compensation system follows the following principles:
- Fairness principle, reflecting that income levels are consistent with the company's scale and performance, and are in line with external compensation levels;
- Unity of responsibility, authority, and interests principle, reflecting that compensation corresponds to the value of the position and the size of responsibilities;
- Long-term development principle, reflecting that compensation aligns with the goals of the company's sustainable and healthy development;
- Balance of incentives and constraints principle, reflecting that compensation distribution is linked to assessments, rewards and punishments, and incentive mechanisms.
Chapter 2 Compensation Management Organization
Article 4
The Board's Compensation and Assessment Committee is responsible for formulating assessment standards for directors and senior management and conducting assessments; formulating and reviewing the compensation decision-making mechanism, decision-making process, payment and recovery arrangements, and other compensation policies and plans for directors and senior management.