Chapter 1 General Provisions
Article 1 To further establish and improve the remuneration system for directors and senior management of Shenzhen Fuanna Home Products Co., Ltd. (hereinafter referred to as the "Company"), fully mobilize the enthusiasm of directors and senior management, and improve the Company's operational and management efficiency, the Company has formulated this system in accordance with the "Company Law of the People's Republic of China," "Guidelines for Corporate Governance of Listed Companies," "Rules Governing the Listing of Stocks on the Shenzhen Stock Exchange," and other laws, regulations, and normative documents, as well as the "Articles of Association of Shenzhen Fuanna Home Products Co., Ltd." (hereinafter referred to as the "Articles of Association"), and in conjunction with the Company's actual situation.
Article 2 This system applies to all directors and senior management of the Company. Senior management refers to the Company's general manager, deputy general managers, financial controller, board secretary, and other senior management personnel as stipulated in the "Articles of Association."
Article 3 The remuneration management for the Company's directors and senior management shall adhere to the following principles: (1) Reflecting the principle that income levels are consistent with the Company's scale and performance, and are also aligned with external remuneration levels; (2) Reflecting the principle of commensurate responsibilities, rights, and benefits, with remuneration commensurate with the value of the position and the extent of responsibility undertaken; (3) Reflecting the principle of the Company's long-term interests, consistent with the goal of the Company's sustained and healthy development; (4) Reflecting the principle of balancing incentives and constraints, and commensurate rewards and punishments, with remuneration linked to performance and rewards and punishments.