Chapter 1 General Principles
Article 1
To further improve the compensation management for the board and senior management of Xiamen Jihong Technology Co., Ltd. (hereinafter referred to as "the Company"), effectively motivate the work enthusiasm of the board and senior management, and establish a scientific and effective incentive and restraint mechanism, this system is formulated based on the "Company Law of the People's Republic of China," "Corporate Governance Guidelines for Listed Companies (2025 Revision)," and other laws and regulations, as well as the provisions of the Articles of Association, combined with the actual situation of the Company.
Article 2
This system applies to the following personnel:
- Directors, including independent directors and non-independent directors;
- Senior management personnel, including the general manager, deputy general managers, board secretary, financial director, and other senior management personnel recognized by the board.
Article 3
The determination of compensation for directors and senior management personnel follows these principles:
- The principle of unity of responsibility, authority, and interests, where compensation matches the company's operational scale, position value, and the extent of responsibilities;
- The principle of long-term development, where compensation aligns with the company's sustainable and healthy development goals;
- The principle of balancing incentives and constraints, where compensation distribution is linked to assessments, rewards, penalties, and incentive mechanisms.
Chapter 2 Compensation Management Organization
Article 4
The compensation plans for directors and senior management personnel are formulated by the Compensation and Assessment Committee of the board, while the compensation plan for directors is decided by the shareholders' meeting and disclosed. When the board or the Compensation and Assessment Committee evaluates or discusses the compensation of an individual director, that director must abstain. The compensation plan for senior management personnel is approved by the board, explained to the shareholders' meeting, and fully disclosed.