Hefei Xueqi Electric Co., Ltd. System for the Management of Compensation for Directors and Senior Management
Chapter 1 General Provisions
Article 1 To establish a modern corporate system for Hefei Xueqi Electric Co., Ltd. (hereinafter referred to as the "Company") that is compatible with the modern corporate system, and to establish an incentive and restraint mechanism that matches responsibilities and rights, to reasonably determine the compensation levels and payment methods for the Company's directors and senior management, to ensure that the Company's directors and senior management actively and effectively perform their respective duties and obligations, to improve the Company's operational management level and enhance the Company's operational management efficiency, and to promote the Company's sustainable and stable development, these regulations are formulated in accordance with the "Company Law of the People's Republic of China," the "Corporate Governance Guidelines for Listed Companies," and other relevant laws, regulations, rules, normative documents, and the "Articles of Association of Hefei Xueqi Electric Co., Ltd." (hereinafter referred to as the "Articles of Association"), taking into account the Company's actual situation.
Article 2 This system applies to the following personnel: (1) Members of the Board of Directors: including independent directors and non-independent directors; (2) Senior management personnel: refers to the Company's general manager, deputy general managers, secretary of the board, financial controller, and other senior management personnel.
Article 3 The compensation management for the Company's directors and senior management shall adhere to the following principles: (1) Principle of fairness, reflecting that the income level is in line with the Company's scale and performance, while also considering the market compensation level; (2) Principle of unity of responsibility, rights, and benefits, reflecting that compensation is commensurate with the value of the position, the level of responsibility, and the extent of obligations; (3) Principle of long-term development, reflecting that compensation is aligned with the goal of the Company's sustained and healthy development; (4) Principle of equal emphasis on incentives and restraints, reflecting that compensation payments are linked to assessments, rewards and punishments, and the incentive mechanism.
Chapter 2 Compensation Management Organization
Article 4 The Compensation and Remuneration Committee of the Board of Directors shall be responsible for formulating and assessing the performance standards for the Company's directors and senior management; and for formulating and reviewing the compensation policies and plans for the Company's directors and senior management.
Article 5 The compensation plan for directors shall be decided by the shareholders' meeting and disclosed. When the Board of Directors or the Compensation and Remuneration Committee evaluates or discusses the remuneration of a director, that director shall recuse himself. The compensation plan for senior management personnel shall be approved by the Board of Directors, explained to the shareholders' meeting, and fully disclosed.
Article 6 The Company's Human Resources Department, Finance Department, Securities Department, and other relevant departments shall cooperate with the Compensation and Remuneration Committee of the Board of Directors in the specific implementation of the compensation plans for the Company's directors and senior management.