Honggong Technology Co., Ltd. Compensation Management System (June 2026)
Chapter 1 General Provisions
Article 1 To further improve the compensation system of Honggong Technology Co., Ltd. (hereinafter referred to as the "Company"), strengthen and standardize the management of compensation for the Company's directors and senior management, and in accordance with the "Company Law of the People's Republic of China" (hereinafter referred to as the "Company Law"), the "Securities Law of the People's Republic of China," the "Corporate Governance Guidelines for Listed Companies," the "Shenzhen Stock Exchange ChiNext Stock Listing Rules," and other relevant laws, regulations, normative documents, and the "Articles of Association of Honggong Technology Co., Ltd." (hereinafter referred to as the "Articles of Association"), and the "Work Rules of the Board of Directors' Compensation and Assessment Committee," combined with the Company's actual situation, this system is formulated.
Article 2 This system applies to the Company's directors, senior management, and all employees.
The term "director" as used in this system refers to all incumbent members of the Board of Directors during the period this system is in effect, including internal directors, external directors, and independent directors. The term "internal director" refers to a company employee or company management personnel who also serves as a director and has signed an appointment contract or labor contract with the Company. The term "external director" refers to a non-independent director who does not hold any other positions in the Company besides director. The term "independent director" refers to a director appointed by the Company in accordance with the "Measures for the Administration of Independent Directors of Listed Companies" and other relevant regulations, who has no relationship with the Company and its major shareholders that may hinder their independent and objective judgment.
The term "senior management" as used in this system refers to the General Manager, Deputy General Managers, Chief Financial Officer, and Secretary of the Board of Directors.
Article 3 The compensation management for directors and senior management follows the following principles:
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Principle of Fairness (1) The compensation provided by the Company is competitive compared to the income levels of equivalent positions in the market. (2) The compensation for each position within the Company reflects the value of that position to the Company and embodies the unity of "responsibility, rights, and interests."
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Principle of Linking to Performance
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Principle of Combining Short-Term and Long-Term Incentives
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Principle of Combining Incentives and Constraints
Chapter 2 Management Structure
Article 4 The Compensation and Assessment Committee of the Board of Directors is the management body responsible for assessing directors and senior management and determining their compensation. The Company's Human Resources Department and Finance Department shall cooperate with the Compensation and Assessment Committee in implementing the Company's compensation plan.