Management System for Compensation of Directors and Senior Management
Chapter 1 General Provisions
Article 1 To establish and improve the incentive and restraint mechanism for Shanghai Xinpeng Industrial Co., Ltd. (hereinafter referred to as the "Company"), fully leverage the enthusiasm of the Company's directors and senior management, and enhance the level of business management, this system is formulated in accordance with the "Company Law of the People's Republic of China" (hereinafter referred to as the "Company Law"), the "Guiding Principles on Corporate Governance of Listed Companies," and other relevant laws, regulations, and normative documents, as well as the "Articles of Association of Shanghai Xinpeng Industrial 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 the following personnel: (1) All directors of the Company; (2) Senior management personnel as stipulated in the "Articles of Association."
Article 3 This system adheres to the following compensation principles: (1) The principle of openness, fairness, and transparency; (2) The principle of aligning with the Company's long-term interests: it should be consistent with the Company's sustainable and healthy development goals, combining short-term and long-term incentives to promote the Company's sustainable development; (3) The principle of unifying "responsibilities, rights, and benefits": it should comprehensively consider factors such as job position, work performance, contribution size, and the unity of responsibilities, rights, and benefits; (4) The principle of performance linkage: it should be linked to the completion of individual job responsibilities and goals, and combined with the Company's operating performance, annual assessment results, and behavioral norms; (5) The principle of competitiveness: it should follow market laws to set reasonable compensation standards, maintain sufficient attractiveness and competitiveness of the Company's compensation in the region or industry, and be conducive to attracting talent for the Company.