Chapter 1 General Provisions
Article 1 To further promote the establishment of a performance incentive and restraint mechanism adapted to modern enterprise management, fully mobilize the enthusiasm and creativity of senior management, improve the company's operational efficiency, and promote the company's sustained and healthy development, the company has formulated this system in accordance with the "Company Law of the People's Republic of China," the "Corporate Governance Guidelines for Listed Companies," the "Listing Rules of the Shenzhen Stock Exchange ChiNext Market," the "Shenzhen Stock Exchange Listed Company Self-Regulatory Supervision Guidelines No. 2 - Norms for Operating on the ChiNext Market," and other relevant laws and regulations, as well as the "Articles of Association of Zhenjiang Oriental Electric Heating Technology Co., Ltd." (hereinafter referred to as the "Articles of Association").
Article 2 Applicable objects: Company directors, senior management personnel, including non-independent directors, independent directors, general manager, executive general manager, deputy general managers, board secretary, financial controller, and other senior management personnel as stipulated in the "Articles of Association."
Article 3 Basic Principles
- Adhere to the principle of preserving and increasing asset value and maximizing enterprise value;
- Adhere to the principle of unifying incentives and constraints, aligning compensation with risk and responsibility, and closely linking the compensation of senior management with the company's operating performance, individual responsibility, and contribution;
- Combine the company's short-term benefits with long-term interests to promote the company's healthy and sustainable development;
- Adhere to the principle of market-oriented and standardized compensation distribution;
- Adhere to the principle of fairness, justice, and openness, with scientific evaluation and strict implementation.
Chapter 2 Compensation Management Organization
Article 4 The company's board of directors is responsible for reviewing the compensation of senior management personnel; the company's shareholders' meeting is responsible for reviewing the compensation of directors.
Article 5 The Compensation and Appraisal Committee of the Board of Directors is responsible for managing the compensation of directors and senior management personnel under the authorization of the Board of Directors; it is responsible for reviewing the performance of directors and senior management personnel and conducting assessments; it is responsible for supervising the implementation of the company's compensation system; and it may propose recommendations to the Board of Directors regarding the compensation of directors and senior management personnel. The responsibilities and powers of the Compensation and Appraisal Committee of the Board of Directors shall be executed in accordance with the "Articles of Association" and the "Work Rules for the Specialized Committees of the Board of Directors" of the company.
Article 6 The company's human resources department and finance department shall cooperate with the Compensation and Appraisal Committee of the Board of Directors to implement the specific management of the company's senior management personnel compensation.