Chapter 1 General Provisions
Article 1 To further strengthen and standardize the management of remuneration for directors and senior management of Shandong Hongqiao Aluminum Industry Holding Co Ltd (hereinafter referred to as the "Company"), to evaluate their performance fairly, objectively, scientifically, and standardizedly, to fully mobilize the enthusiasm and creativity of directors and senior management, and to promote the sustainable and healthy development of the Company, these provisions are formulated in accordance with the "Company Law of the People's Republic of China," "Securities Law of the People's Republic of China," "Guiding Opinions on Corporate Governance of Listed Companies," and other relevant laws, administrative regulations, departmental rules, normative documents, and the "Articles of Association of Shandong Hongqiao Aluminum Industry Holding Co Ltd" (hereinafter referred to as the "Articles of Association"), combined with the actual situation of the Company.
Article 2 These provisions apply to the directors and senior management of the Company.
Article 3 The remuneration of the Company's directors and senior management shall be determined based on a comprehensive assessment of the Company's operating performance, management situation, individual performance, and development situation.
Article 4 The remuneration and assessment of the Company's directors and senior management shall be based on achieving the Company's strategic goals and economic benefits, and the remuneration management shall follow the following principles: (1) Principle of openness, fairness, and justice: reflecting the principle that the income level is matched with the Company's scale and performance, while also considering the market remuneration level; (2) Principle of unity of responsibility, rights, and interests: reflecting the principle that remuneration is matched with the value of the position and the extent of responsibilities and obligations; (3) Principle of long-term development: reflecting the principle that remuneration is consistent with the goal of the Company's sustainable and healthy development; (4) Principle of balancing incentives and constraints: reflecting the principle that remuneration payment is linked to assessment, rewards and punishments, and incentive mechanisms.