Compensation Management System for Directors and Senior Management
Chapter 1 General Provisions
Article 1 To further improve the compensation management of directors and senior management of North Long Dragon New Materials Technology Co., Ltd. (hereinafter referred to as "the Company"), establish a scientific and effective incentive and restraint mechanism, effectively mobilize the work enthusiasm of the Company's directors and senior management, and improve the Company's operational and management efficiency, in accordance with the "Company Law of the People's Republic of China," "Guidelines on Corporate Governance of Listed Companies," and other relevant laws and regulations, as well as the "Articles of Association of North Long Dragon New Materials Technology Co., Ltd." (hereinafter referred to as "Articles of Association"), and in combination with the actual situation of the Company, this "Compensation Management System for Directors and Senior Management of North Long Dragon New Materials Technology Co., Ltd." (hereinafter referred to as "this System") is formulated.
Article 2 The directors and senior management referred to in this System are all directors elected and appointed by the shareholders' meeting and the board of directors, as well as the general manager, deputy general managers, secretary of the board, and chief financial officer (financial controller) and other senior management personnel.
Article 3 The determination of compensation for the Company's directors and senior management follows the following principles: (1) Fairness principle: income level is consistent with the Company's scale and performance, and also with market compensation levels. (2) Unity of responsibility, rights, and interests principle: compensation is consistent with the value of the position and the extent of responsibilities undertaken. (3) Long-term development principle: compensation is consistent with the goal of the Company's sustained and healthy development. (4) Emphasis on both incentives and restraints principle: compensation is linked to performance appraisal and incentive mechanisms.
Chapter 2 Compensation Management Organization
Article 4 The Board of Directors shall establish a Remuneration and Appraisal Committee, which shall be responsible for formulating the assessment standards for directors and senior management, conducting assessments, organizing performance evaluations, formulating and reviewing the compensation policies and plans for directors and senior management, and submitting proposals to the Board of Directors on the following matters: (1) Compensation for directors and senior management; (2) Formulation or revision of equity incentive plans and employee stock ownership plans, and the conditions for incentive recipients to obtain authorization and exercise their rights; (3) Shareholding plans for directors and senior management in subsidiaries they are appointed to; (4) Other matters stipulated by laws, administrative regulations, relevant regulations of the China Securities Regulatory Commission and the Shenzhen Stock Exchange, and the Articles of Association.