Chapter 1 General Provisions
Article 1 To regulate the compensation management of directors and senior management of Jiangsu Lianfa Textile Co., Ltd. (hereinafter referred to as the "Company" or "Shareholding Company"), establish a scientific and effective incentive and restraint mechanism, fully mobilize the enthusiasm of directors and senior management, improve the company's business performance and management level, and in accordance with the "Company Law of the People's Republic of China" (hereinafter referred to as the "Company Law"), the "Corporate Governance Guidelines for Listed Companies," the "Articles of Association," and other relevant regulations, and in combination with the Company's actual situation, this system is formulated.
Article 2 This system applies to the directors and senior management of the Company.
Article 3 The compensation management of directors and senior management of the Company follows the following principles: (1) Compensation matches job responsibilities; (2) Unified compensation structure, controlled total compensation, and reasonable compensation increases; (3) Compensation should be highly competitive in the market while fully reflecting individual value.
Article 4 The Company shall reasonably determine the compensation allocation ratio among directors, senior management, and general employees, taking into account factors such as industry levels, development strategies, and job value.
Chapter 2 Management Structure
Article 5 The compensation plan for directors and senior management of the Company shall be formulated by the Board of Directors' Compensation and Assessment Committee, clarifying the basis for compensation determination and its specific composition. The compensation plan for directors shall be decided by the shareholders' meeting and disclosed. The compensation plan for senior management shall be approved by the Board of Directors, explained to the shareholders' meeting, and fully disclosed.