Chapter 1 General Principles
Article 1
To further improve the compensation management system for directors and senior management of Hongjing 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, enhance the operational management efficiency of the Company, and promote 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," "Guidelines for Corporate Governance of Listed Companies," "Self-Regulatory Guidelines No. 2 for the Standard Operation of GEM Listed Companies" issued by the Shenzhen Stock Exchange, and other relevant laws, regulations, and normative documents, as well as the provisions of the "Articles of Association of Hongjing 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, including: the Company’s directors, general manager, deputy general managers, board secretary, financial director, etc.
Article 3
The Company’s compensation management system follows the principles below:
- Fairness Principle: Reflects that income levels are commensurate with the Company’s scale, aligned with the Company’s operational performance and individual performance, while considering market compensation levels to maintain competitive salary levels.
- Unity of Responsibility, Authority, and Interests Principle: Reflects that compensation corresponds to the value of the position and the extent of responsibilities.
- Long-term Development Principle: Reflects that compensation aligns with the goals of the Company’s sustainable and healthy development.
- Balance of Incentives and Constraints Principle: Reflects that compensation distribution is linked to assessment, rewards and punishments, and incentive mechanisms.
Chapter 2 Compensation Management Organization
Article 4
The Company’s board of directors establishes a Compensation and Assessment Committee, which is responsible to the board of directors. The Compensation and Assessment Committee, authorized by the board of directors, is responsible for formulating assessment standards for directors and senior management, conducting assessments, formulating and reviewing compensation policies and plans for directors and senior management, and making recommendations to the board of directors on the following matters:
- Compensation for directors and senior management;
- Formulation or modification of equity incentive plans, employee stock ownership plans, and conditions for the exercise of rights by authorized beneficiaries;
- Plans for shareholding arrangements for directors and senior management in proposed spin-off subsidiaries;
- Other matters stipulated by laws, administrative regulations, Shenzhen Stock Exchange regulations, and the Articles of Association.