Chapter 1 General Principles
Article 1
To further improve the compensation management system for directors and senior management of Si Hui Fu Shi Electronics Technology Co., Ltd. (hereinafter referred to as "the Company"), and to establish a scientific and effective incentive and restraint mechanism that effectively motivates the work enthusiasm of the Company's directors and senior management, thereby enhancing the operational management efficiency of the Company, this system is formulated in accordance with the "Company Law of the People's Republic of China," "Guidelines for the Governance of Listed Companies," and other relevant laws and regulations, as well as the provisions of the "Articles of Association of Si Hui Fu Shi Electronics Technology Co., Ltd." (hereinafter referred to as "the Articles of Association"), combined with the actual situation of the Company.
Article 2
This system applies to the directors and senior management personnel as stipulated in the Articles of Association. The term "directors" refers to all current members of the Company's board of directors during the implementation of this system, including internal directors, external directors, and independent directors. The term "internal directors" refers to employees or management personnel of the Company who hold a concurrent position as directors under an employment or labor contract with the Company; "external directors" refers to non-independent directors who do not hold other positions in the Company besides that of director; "independent directors" refers to directors appointed by the Company in accordance with the "Management Measures for Independent Directors of Listed Companies," who do not have any relationships with the Company or its major shareholders that may hinder their independent and objective judgment. The term "senior management personnel" refers to the Company's general manager, deputy general managers, financial officer, board secretary, and other personnel as stipulated in the Articles of Association.
Article 3
The compensation management system for the Company's directors and senior management personnel follows the principles below:
- Fairness principle, reflecting that income levels are consistent with the Company's scale and performance, and align with external compensation levels;
- Principle of equivalence of responsibility, authority, and benefits, reflecting that compensation corresponds to the value of the position and the level of responsibility undertaken;
- Long-term development principle, reflecting that compensation aligns with the goals of the Company's sustainable and healthy development;
- Principle of balancing incentives and constraints, reflecting that compensation distribution is linked to assessment, rewards, and penalties.