Chapter 1 General Principles
Article 1
To further improve the compensation management of directors and senior management of Ru Yi Film Entertainment Co., Ltd. (hereinafter referred to as "the Company"), establish a scientific and effective incentive and restraint mechanism, and enhance the level of corporate management, the Company formulates this system in accordance with the "Company Law of the People's Republic of China," "Securities Law of the People's Republic of China," "Code of Corporate Governance for Listed Companies," "Shenzhen Stock Exchange Listing Rules," and other relevant laws, regulations, normative documents, and the provisions of the "Articles of Association of Ru Yi Film Entertainment Co., Ltd." (hereinafter referred to as "the Articles of Association"), combined with the actual situation of the Company.
Article 2
This system applies to:
- Directors of the Company: Those who hold other positions in addition to being directors (including members of special committees of the board) are executive directors; those who do not hold any positions other than being directors (including members of special committees of the board) and are not independent directors are non-executive directors. Independent directors are those who serve in accordance with the "Administrative Measures for Independent Directors of Listed Companies."
- Senior management of the Company: General manager, deputy general managers, board secretary, financial officer, and other senior management as stipulated in the Articles of Association.
Article 3
The compensation for directors and senior management of the Company follows these principles:
- Adhere to the unity of incentive and restraint, aligning compensation with risk and responsibility;
- Link compensation to the Company's operational performance and the completion of work responsibilities and objectives;
- Ensure that compensation levels are competitive compared to similar positions in the industry;
- Integrate compensation with the Company's long-term interests and sustainable development.
Chapter 2 Compensation Management Institutions and Decision-Making Procedures
Article 4
The Compensation and Assessment Committee of the Board of Directors is responsible for formulating assessment standards for directors and senior management and conducting assessments; responsible for formulating and reviewing compensation plans for directors and senior management; and supervising the implementation of the Company's compensation system. The performance evaluation of independent directors is conducted through self-evaluation and mutual evaluation.
Article 5
The compensation plan for directors must be approved by the Board of Directors and submitted to the shareholders' meeting for approval before implementation. The Board of Directors shall report to the shareholders' meeting on the performance of directors, evaluation results, and their compensation. The compensation plan for senior management must be approved by the Board of Directors and explained to the shareholders' meeting.