Chapter 1 General Principles
Article 1
To standardize the compensation management of directors and senior management at Lens Technology Co., Ltd. (hereinafter referred to as "the Company"), establish a scientific and effective incentive and restraint mechanism, improve the company's management level, and promote stable and sustainable development, this system is formulated in accordance with the Company Law of the People's Republic of China, the Securities Law of the People's Republic of China, the Guidelines for the Governance of Listed Companies, relevant listing rules of the Shenzhen Stock Exchange and Hong Kong Stock Exchange, and the Articles of Association of the Company.
Article 2
This system applies to the Company's directors (including executive directors, non-executive directors, and independent directors) and senior management personnel.
Article 3
The Company's compensation management follows the following core principles:
- Strategic Guidance Principle: The compensation system closely aligns with the company's strategies for technological innovation, vertical integration of the industrial chain, overseas development, high-end manufacturing upgrades, and new business expansion, supporting the long-term development goals of the company.
- Market Benchmarking Principle: Compensation levels benchmark against global competitors in the consumer electronics components manufacturing, new energy vehicle components, and smart terminal sectors, considering job responsibilities, tenure, and industry compensation levels.
- Performance Linkage Principle: Compensation is deeply tied to the company's operational performance, business segment contributions, and individual performance, with performance-based compensation accounting for no less than 50% of total compensation.
- ESG Integration Principle: Environmental, social, and governance (ESG) performance is fully incorporated into the assessment system, promoting the coordinated development of green manufacturing, safety production, social responsibility, and corporate governance.
- Compliance and Risk Control Principle: Compensation design, calculation, and distribution strictly adhere to regulatory requirements in both A-share and H-share markets, establishing a comprehensive mechanism for deferred compensation, payment cessation, and clawback.
- Independence and Transparency Principle: Compensation decisions, assessment results, and processes are publicly transparent and independent, subject to regulatory and shareholder oversight.
Chapter 2 Total Compensation Determination Mechanism
Article 4
The Compensation and Assessment Committee of the Board of Directors (hereinafter referred to as "the Compensation Committee") is a specialized working body under the Board of Directors, fully responsible for establishing assessment standards, performance evaluation, compensation plan design, and supervision of execution for the company's directors and senior management.
Article 5
The company implements annual total compensation budget management for directors and senior management. The Compensation Committee drafts the annual total compensation budget based on the previous year's operational goal completion, this year's operational plan, industry compensation levels, and performance growth expectations, strictly controlling compensation costs in relation to operational efficiency, and executes it after approval by the Board of Directors and the shareholders' meeting.