Chapter 1 General Provisions
Article 1 To further improve the incentive and restraint mechanisms for directors and senior management of Zhejiang Yasha Decoration Co., Ltd. (hereinafter referred to as the "Company"), enhance the level of enterprise management, fully leverage the enthusiasm of the Company's directors and senior management, strengthen cohesion, promote the growth of the Company's benefits, and safeguard the legitimate rights and interests of the Company and all shareholders, in accordance with the "Company Law of the People's Republic of China," the "Corporate Governance Guidelines for Listed Companies" (revised in 2025), and other laws, regulations, rules, and normative documents, combined with the "Articles of Association" and the actual situation of the Company, this system is formulated.
Article 2 This system applies to directors, excluding independent directors, and senior management personnel as defined in the "Articles of Association."
Article 3 The compensation management for the Company's directors and senior management adheres to the following principles: (1) Principle of fairness: Compensation levels are commensurate with the Company's scale, performance, and market levels. (2) Principle of balancing incentives and restraints: Compensation is linked to performance appraisal, reflecting the unity of responsibility, power, and benefit. (3) Principle of sustainable development: The compensation structure is aligned with the Company's long-term development goals. (4) Principle of compliance and transparency: Compensation decision-making procedures are compliant, and information disclosure is timely and complete.