Chapter 1 General Provisions
Article 1 To further improve the remuneration management of directors and senior management of Zhejiang Runyang New Materials Technology Co., Ltd. (hereinafter referred to as the "Company"), establish a market-oriented incentive and restraint mechanism, effectively mobilize the work enthusiasm of the Company's directors and senior management, and improve the Company's operating and management efficiency, in accordance with the "Company Law of the People's Republic of China," the "Guiding Opinions on Corporate Governance of Listed Companies," the "Shenzhen Stock Exchange GEM Stock Listing Rules," the "Shenzhen Stock Exchange Listed Company Self-Regulatory Supervision Guide No. 2 - Norms for the Operation of GEM Listed Companies," and other relevant laws and regulations, and the "Articles of Association of Zhejiang Runyang New Materials Technology Co., Ltd." (hereinafter referred to as the "Articles of Association"), and in combination with the Company's actual situation, this system is hereby formulated.
Article 2 Personnel covered by these Measures include: Directors include non-independent directors (including employee representative directors) and independent directors; senior management personnel include the general manager, deputy general managers, the board secretary, the financial controller, and other senior management personnel as stipulated in the "Articles of Association."
Article 3 Principles of the Company's Remuneration System: (1) Competitiveness Principle: Remuneration is combined with the value of the position and the responsibilities undertaken, reflecting the unity of "responsibility, rights, and interests," and is competitive compared to the income levels of equivalent positions and regional locations in the market. (2) Efficiency-Oriented Principle: Remuneration is linked to the Company's performance and individual performance, sharing achievements and responsibilities. (3) Strategy-Oriented Principle: It is consistent with the goal of the Company's sustainable and healthy development.
Chapter 2 Management Institutions
Article 4 The remuneration plan for the Company's senior management shall be reviewed by the Board of Directors, explained to the Shareholders' Meeting, and fully disclosed; the remuneration plan for the Company's directors shall be reviewed by the Shareholders' Meeting and disclosed.