Yuan Chuang Technology Co., Ltd. Compensation Management System
Chapter 1 General Principles
Article 1: To establish a scientific and standardized compensation management system, regulate the compensation management of Yuan Chuang Technology Co., Ltd. (hereinafter referred to as the "Company"), fully leverage the incentive and restraint functions of compensation, better mobilize employees' enthusiasm and creativity, improve the company's operational and management efficiency, and ensure the company's sustained and healthy development, this system is formulated in accordance with the "Company Law of the People's Republic of China," "Corporate Governance Guidelines for Listed Companies," and other relevant laws, regulations, and normative documents, as well as the "Articles of Association of Yuan Chuang Technology Co., Ltd."
Article 2: This system applies to all employees of the Company (including its holding subsidiaries) who have established formal labor or employment relationships. The compensation management of directors and senior management personnel shall also comply with the "Compensation Management System for Directors and Senior Management Personnel of Yuan Chuang Technology Co., Ltd."
Article 3: The total payroll of the Company's employees refers to the total labor remuneration paid by the Company to its employees within a certain period, including basic salary, performance bonuses, long-term incentive income, and various allowances and subsidies.
Article 4: The Company's compensation system follows the following principles: (1) Value-oriented principle: Determine the compensation standards for each position based on factors such as position value, job responsibilities, and qualifications. (2) Performance-oriented principle: Link employees' actual compensation to the company's operating performance, departmental performance, and individual work performance, rewarding the excellent and penalizing the poor. (3) Market-oriented principle: The Company's compensation level should better attract and retain talent, ensuring that the Company's compensation level is competitive in the external market.
Chapter 2 Total Payroll Determination Mechanism
Article 5: The total payroll is determined based on the following factors:
- National and local policy regulations, minimum wage standards set by national and local governments, and price increase levels.
- Position responsibilities and workload intensity.
- Individual capabilities and professional skills.
- Work experience, academic qualifications, and professional titles.
- Scarce talent for the Company.
- Special contributions.
- Company operating performance and individual performance appraisal results.
- For employees who are "high-end, sophisticated, and urgently needed" leading scientific and technological talents or other top-tier scarce domestic and international talents, a special compensation determination mechanism can be implemented, which is not linked to the company's operating performance.