Chapter 1 General Principles
Article 1
To further establish and improve the compensation system for directors and senior management of Dongguan Changlian New Materials Technology Co., Ltd. (hereinafter referred to as the "Company"), and to fully motivate the work enthusiasm of the Company's directors and senior management, promoting the Company's sustainable, stable, and healthy development, this system is formulated in accordance with the "Company Law of the People's Republic of China," "Securities Law of the People's Republic of China," "Code of Corporate Governance for Listed Companies," "Shenzhen Stock Exchange GEM Listing Rules," and relevant provisions of the "Articles of Association of Dongguan Changlian New Materials Technology Co., Ltd." (hereinafter referred to as the "Articles of Association").
Article 2
This system applies to the following personnel:
- Directors, including non-independent directors and independent directors. Non-independent directors include those serving in the Company and those not serving in the Company.
- Senior management, including the general manager, deputy general managers, financial director, board secretary, and other senior management confirmed by the Company's board of directors.
Article 3
The Company's compensation system follows these principles:
- Fairness principle: The compensation of the Company's directors and senior management should be aligned with market development and matched with the Company's operational performance and individual performance.
- Unity of responsibility, authority, and benefits principle: Reflects the alignment of compensation with the value of the position and the extent of responsibilities. At the same time, the determination and payment of performance-based compensation and medium- to long-term incentive income for directors and senior management should be based on performance evaluations.
- Long-term development principle: Reflects the alignment of compensation with the goals of the Company's sustainable and healthy development.
- Balance of incentives and constraints principle: Reflects the linkage between compensation distribution and assessment, rewards and penalties, and incentive mechanisms.
Chapter 2 Compensation Management Organization
Article 4
The shareholders' meeting, board of directors, compensation and assessment committee, and human resources department are responsible for organizing and implementing the compensation and assessment of the Company's directors and senior management, with specific responsibilities as follows:
- The shareholders' meeting is responsible for reviewing and approving the compensation plan for directors.
- The board of directors is responsible for reviewing and approving the compensation plan for senior management.
- The compensation and assessment committee of the board of directors is a specialized working body under the board, responsible for formulating compensation standards for directors and senior management, conducting assessments, and establishing and reviewing the decision-making mechanism, decision-making process, payment, and recovery arrangements for compensation policies and plans.
- The human resources department of the Company assists the compensation and assessment committee of the board in implementing the annual compensation assessment work for directors and senior management. When the board or the compensation and assessment committee evaluates or discusses the compensation of an individual dire