Chapter 1 General Provisions
Article 1 To establish a scientific and reasonable compensation management system, fully leverage the incentive and restraint functions of compensation, attract, retain, and motivate core talent, and ensure the sustainable and healthy development of Aofei Entertainment Co., Ltd. (hereinafter referred to as the "Company"), this system is formulated in accordance with the "Company Law of the People's Republic of China," the "Guidelines for Corporate Governance of Listed Companies," and other laws and regulations, as well as the "Articles of Association of Aofei Entertainment Co., Ltd." (hereinafter referred to as the "Articles of Association").
Article 2 This system applies to all personnel who have established formal labor relations or employment relations with the Company (including its holding subsidiaries). The compensation management of directors and senior management personnel shall comply with this system and relevant regulations for listed company supervision. Senior management personnel referred to in this system shall be as defined in the Articles of Association.
Article 3 Basic Principles (1) Principle of Legality: Strictly abide by national laws and regulations and listed company supervision requirements to ensure compliant and orderly compensation management. (2) Principle of Strategic Orientation: The compensation system shall align with the company's development strategy and support the achievement of its business objectives. (3) Principle of Fairness and Justice: Compensation distribution shall consider job value, performance, and employee contributions, ensuring internal fairness and external competitiveness. (4) Principle of Incentive and Restraint: Strengthen the linkage between compensation and performance, and align with the company's operating performance and individual performance. (5) Principle of Sustainable Development: The total compensation shall be linked to the company's operating benefits, ensuring the reasonableness and sustainability of compensation expenditures.