Chapter 1 General Principles
Article 1
To further strengthen and standardize the management of compensation for directors and senior management of Shenzhen Chuangyitong Technology Co., Ltd. (hereinafter referred to as "the Company"), to evaluate their performance fairly, objectively, scientifically, and normatively, and to fully motivate the work enthusiasm and creativity of directors and senior management, thereby promoting the sustainable and healthy development of the Company, this system is formulated in accordance with 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," "Listing Rules for the Growth Enterprise Market of the Shenzhen Stock Exchange," "Self-Regulatory Guidelines No. 2 for Listed Companies on the Shenzhen Stock Exchange - Standardized Operations of Growth Enterprise Market Listed Companies," and relevant provisions of the "Articles of Association of Shenzhen Chuangyitong 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 directors and senior management as stipulated in the Articles of Association.
Article 3
The compensation for directors and senior management is determined based on a comprehensive assessment of the Company's operational performance, management situation, individual performance, and development status.
Article 4
The compensation and assessment of directors and senior management are based on achieving the Company's strategic goals and economic benefits, adhering to the following principles:
- Principle of Openness, Fairness, and Justice: Reflecting the principle that income levels correspond to the Company's scale and performance while considering market compensation levels;
- Principle of Unity of Responsibility, Rights, and Interests: Matching compensation with the value of the position and the extent of responsibilities;
- Principle of Long-term Development: Aligning compensation with the goal of the Company's sustainable and healthy development;
- Principle of Balancing Incentives and Constraints: Linking compensation distribution with assessment, rewards, and penalties, and connecting it with the Company's incentive mechanism.
Chapter 2 Management Institutions
Article 5
The Compensation and Assessment Committee of the Board of Directors is responsible for formulating assessment standards for directors and senior management, conducting assessments, and developing and reviewing compensation decision mechanisms, decision-making processes, payment and recovery arrangements, and other compensation policies and plans. The Committee shall provide recommendations to the Board of Directors on the following matters:
- Compensation for directors and senior management;
- Formulation or modification of equity incentive plans and employee stock ownership plans, and the achievements of authorized benefits and conditions for exercising rights;
- Arrangements for stock ownership plans for directors and senior management in proposed spin-off subsidiaries;
- Other matters stipulated by laws, regulations, the China Securities Regulatory Commission, the Shenzhen Stock Exchange, and the Articles of Association.