Chapter 1 General Principles
Article 1
Wuxi Best Precision Machinery Co., Ltd. (hereinafter referred to as "the Company") establishes this system to regulate the compensation management framework for directors and senior management, ensuring a scientific and effective incentive and restraint mechanism, and safeguarding the legal responsibilities of the Company’s directors and senior management. This is based on 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 GEM Listing Rules," and relevant laws and regulations, as well as the provisions of the "Articles of Association of Wuxi Best Precision Machinery Co., Ltd." (hereinafter referred to as "the Articles of Association"), combined with the actual situation of the Company.
Article 2
This system applies to all directors and senior management of the Company.
Article 3
The compensation for the Company’s directors and senior management is determined based on industry compensation levels, the scale of the Company’s operations, and its performance, combined with the Company’s operational plans, responsibilities of the positions, job value, and the capabilities of the individuals.
Article 4
The term "compensation" in this system refers to the income received by the Company’s directors and senior management before personal income tax, which is withheld and paid by the Company in accordance with national tax laws.
Chapter 2 Compensation Management Organization
Article 5
The compensation plan for directors is decided by the shareholders' meeting and disclosed. When the board evaluates or discusses the compensation of individual directors, the concerned director must abstain from voting. The compensation plan for senior management is approved by the board and explained to the shareholders' meeting, with full disclosure.
Article 6
The Company’s office and finance department cooperate with the board to implement the compensation plans for directors and senior management.