Chapter 1 General Principles
Article 1
To further improve the compensation management for directors and senior management of CIMC Enric Holdings Limited (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, and enhance the operational management efficiency of the Company, this system is formulated in accordance with the Company Law of the People's Republic of China (hereinafter referred to as "the Company Law"), the Guidelines for the Governance of Listed Companies, the Listing Rules of the Shenzhen Stock Exchange for Growth Enterprise Market, the Self-Regulatory Guidelines No. 2 for Listed Companies on the Shenzhen Stock Exchange - Standardized Operations of Growth Enterprise Market Listed Companies, and relevant provisions of the Articles of Association of CIMC Enric Holdings Limited (hereinafter referred to as "the Articles of Association").
Article 2
This system applies to the directors and senior management as stipulated in the Articles of Association.
Article 3
The compensation for directors and senior management is linked to the long-term development of the Company and the interests of shareholders, ensuring the Company's long-term stable development. The compensation is closely related to the Company's performance and work objectives, and is consistent with market value principles. The Company's compensation system adheres to the following principles:
- Fairness principle, reflecting income levels that align with the Company's scale and performance, ensuring overall compensation levels consider both internal and external fairness;
- Unity of responsibility, authority, and benefits principle, reflecting the alignment of compensation with the value of positions and the extent of responsibilities;
- Long-term development principle, reflecting the alignment of compensation with the goals of the Company's sustainable and healthy development;
- Balance of incentives and constraints principle, reflecting the linkage of compensation distribution with 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 the assessment standards for directors and senior management and conducting assessments; it is responsible for formulating and reviewing the compensation decision-making mechanism, decision-making processes, payment and recovery arrangements, and other compensation policies and plans; and it is responsible for recommending adjustments to compensation to the Board of Directors.