Chapter 1 General Principles
Article 1
To further standardize the compensation management of directors and senior management at Shenzhen Qiangrui Precision Technology Co., Ltd. (hereinafter referred to as "the Company"), establish a scientific and effective incentive and constraint mechanism, effectively motivate the enthusiasm and creativity of the Company's directors and senior management, and enhance the operational management efficiency of the Company, this system is formulated based on the "Company 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 other relevant laws, regulations, normative documents, and the provisions of the "Articles of Association of Shenzhen Qiangrui Precision 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 as stipulated in the Articles of Association. The term "directors" refers to all members of the Company's board of directors during the implementation of this system, including independent directors and non-independent directors (including internal and external directors).
Article 3
The compensation of the Company's directors and senior management should be adapted to market development, aligned with the Company's operational performance and individual performance, and coordinated with the Company's sustainable development. The management of compensation for directors and senior management should adhere to the following principles:
- Fairness Principle: Compensation is linked to the Company's scale and performance while considering market compensation levels;
- Unity of Responsibility, Authority, and Interests Principle: Compensation corresponds to the value of the position and the extent of responsibilities;
- Long-term Development Principle: Compensation aligns with the goals of the Company's sustainable and healthy development;
- Balance of Incentives and Constraints Principle: Compensation distribution is linked to performance evaluation, rewards and penalties, and incentive mechanisms.
Article 4
The Company should reasonably determine the compensation of directors and senior management based on industry standards, development strategies, and position value.
Chapter 2 Compensation Management Organization
Article 5
The compensation plan for the Company's directors and senior management is formulated by the Board of Directors' Compensation and Assessment Committee, which clarifies the basis for determining compensation and its specific components. The compensation plan for directors is decided by the shareholders' meeting and disclosed. When the Board of Directors or the Compensation and Assessment Committee evaluates individual directors or discusses their compensation, the concerned director should abstain.