Chapter 1 General Principles
Article 1 To further improve the compensation management of directors and senior management of Beijing Shuangjie Electric Co., Ltd. (hereinafter referred to as the "Company"), establish a scientific and effective incentive and restraint mechanism, effectively mobilize the enthusiasm of directors and senior management for work, and improve the Company's operational and management efficiency, in accordance with the "Company Law of the People's Republic of China," the "Guiding Principles on Corporate Governance of Listed Companies," and other relevant laws and regulations, and the "Articles of Association of Beijing Shuangjie Electric Co., Ltd." (hereinafter referred to as the "Articles of Association"), combined with the Company's current compensation management system, this system is hereby formulated.
Article 2 This system applies to: directors, general managers, deputy general managers, the board secretary, the chief financial officer, and other senior management personnel as stipulated in the Articles of Association.
Article 3 The compensation management for directors and senior management of the Company follows the following principles: (1) The principle of fairness, reflecting that the income level is consistent with the Company's scale and performance, and is also consistent with external compensation levels; (2) The principle of equal responsibility, rights, and benefits, reflecting that compensation is commensurate with the value of the position and the extent of responsibility undertaken; (3) The principle of long-term development, reflecting that compensation is consistent with the goal of the Company's sustained healthy development; (4) The principle of emphasizing both incentives and restraints, reflecting that compensation distribution is linked to performance appraisal, rewards and punishments, and incentive mechanisms.
Chapter 2 Compensation Management Organization
Article 4 The Compensation and Remuneration Committee of the Board of Directors is responsible for formulating the compensation management system for directors and senior management of the Company, which shall be submitted to the Board of Directors and the Shareholders' Meeting for approval.