Chapter 1 General Principles
Article 1
To improve the compensation management for directors and senior management of Yunhan Xincheng (Shanghai) Internet 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, 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," "Code of Corporate Governance for Listed Companies," "Guidelines for Articles of Association of Listed Companies," "Listing Rules for the Shenzhen Stock Exchange Growth Enterprise Market," and other laws, regulations, and normative documents, as well as the provisions of the "Articles of Association of Yunhan Xincheng (Shanghai) Internet Technology Co., Ltd." (hereinafter referred to as "the Articles of Association").
Article 2
This system applies to all directors and senior management of the Company.
Article 3
The compensation management for the Company's directors and senior management follows the principles below:
- Fairness Principle: The compensation level for directors and senior management should align with the Company's operational development and performance levels, and correspond with the overall compensation levels for similar positions in the region and industry.
- Principle of Distribution According to Labor and Unity of Responsibility, Authority, and Interests: The compensation level for directors and senior management should match the size of their job responsibilities, individual capabilities, and performance evaluation results.
- Principle of Long-term Interests of the Company: The compensation level should align with the goals of the Company's sustainable and healthy development.
- Principle of Balancing Incentives and Constraints: The distribution of compensation should be linked to assessments, rewards, penalties, and incentive mechanisms.
Chapter 2 Compensation Management Organization
Article 4
The Company's shareholders' meeting is responsible for reviewing the compensation plans for directors, while the board of directors is responsible for reviewing the compensation plans for senior management.
Article 5
The board of directors has a Compensation and Assessment Committee, responsible for formulating and reviewing the compensation policies and structures for directors and senior management, establishing assessment standards, supervising assessments, and making recommendations to the board regarding the compensation plans for directors and senior management. If the board does not adopt or fully adopt the recommendations from the Compensation and Assessment Committee, it must record the opinions of the Committee and the specific reasons for non-adoption in the board resolution and disclose them.