Chapter 1 General Principles
Article 1
To further standardize the compensation management of directors and senior management of Harbin Fuerjia Technology Co., Ltd. (hereinafter referred to as "the Company"), establish a scientific and effective incentive and restraint mechanism, effectively motivate the work enthusiasm of the Company's directors and senior management, improve the Company's operational management level, and promote the long-term healthy and stable development of the Company, this system is formulated in accordance with the "Company Law of the People's Republic of China," "Guidelines for the Governance of Listed Companies," and other laws and regulations, as well as the provisions of the "Articles of Association."
Article 2
This system applies to the directors and senior management of the Company, as defined by the personnel specified in the "Articles of Association."
Article 3
The Company's compensation management system follows the following principles:
- Competitiveness Principle: Compensation levels should match the Company's scale and performance while considering market compensation levels;
- Unity of Rights and Responsibilities Principle: Compensation levels should match the value of the position and the responsibilities;
- Sustainable Development Principle: Overall compensation levels should align with the goals of the Company's sustainable and healthy development;
- Balance of Incentives and Constraints Principle: Compensation distribution should be linked to assessment, rewards and penalties, and incentive mechanisms.
Chapter 2 Compensation Management Organization
Article 4
The Company's Board of Directors' Compensation and Assessment Committee is responsible for formulating the performance evaluation standards for directors and senior management and conducting evaluations, as well as formulating and reviewing the compensation standards and plans for directors and senior management. The performance evaluation of independent directors is conducted through self-evaluation and mutual evaluation methods.