Dongguan Yihada Automation Co., Ltd.
Compensation System for Directors and Senior Management
Chapter 1 General Provisions
Article 1 To further improve the compensation management system for directors and senior management of Dongguan Yihada Automation Co., Ltd. (hereinafter referred to as the "Company"), establish a sound and effective incentive and restraint mechanism, fully stimulate the enthusiasm, initiative, and creativity of directors and senior management, improve the Company's operational management level, and promote the Company's healthy, sustained, and stable development, this system is formulated in accordance with the relevant laws, regulations, and normative documents such as the "Company Law of the People's Republic of China," the "Corporate Governance Guidelines for Listed Companies," and the "Articles of Association of Dongguan Yihada Automation Co., Ltd." (hereinafter referred to as the "Articles of Association"), and in conjunction with the Company's actual situation.
Article 2 This system applies to directors and senior management as defined in the Articles of Association.
Article 3 The compensation management for the Company's directors and senior management follows the following principles: (1) Principle of fairness and reasonableness: The Company determines corresponding compensation in a fair and reasonable manner by considering the Company's operating scale, development level, industry and regional compensation levels, as well as job responsibilities, actual contributions, and attendance. (2) Principle of equal rights and responsibilities: Compensation is commensurate with the value of the position and the fulfillment of responsibilities and obligations, and is matched with the Company's operating performance and individual performance. (3) Principle of sustainable development: Compensation should be adapted to market development and the Company's sustainable development. (4) Principle of balancing incentives and restraints: The incentive and restraint functions of compensation are effectively utilized.
Chapter 2 Composition and Confirmation of Compensation