Suzhou Dongshan Precision Manufacturing Co.Ltd(002384)
Performance management system for core managers and technical talents
Article 1 Purpose
In order to further improve the performance management system of Suzhou Dongshan Precision Manufacturing Co.Ltd(002384) (hereinafter referred to as “the company”), build a long-term incentive mechanism of “cash + equity” and “short term + medium and long term” to promote the long-term, sustainable and healthy development of the company. Achieve a high degree of unity between the interests of employees and shareholders, attract and retain talents, and share the benefits of the company’s growth. This system is hereby formulated.
Article 2 scope of application
The system is applicable to the core management personnel and technical talents of the company.
Article 3 organization and division of labor
The company establishes a performance appraisal management committee and an appraisal working group. The performance appraisal management committee finally decides the appraisal indicators and standards, approves the appraisal scheme and results, and approves the core managers and technical talents included in the human resources management appraisal system of the headquarters in the year.
The assessment team is specifically responsible for the organization and implementation of performance assessment, the human resources management center of the company is responsible for the organization and coordination, training guidance and assessment summary of performance assessment, and the Securities Department of the company is responsible for the specific implementation of equity part (if any).
Article 4 assessment contents and basis
The performance appraisal is guided by individual performance and ability, and adopts the percentage system. The specific contents of the assessment shall highlight the key performance indicators. The main assessment contents include the achievement of work objectives set at the beginning of the year, personal professional ability, management ability assessment based on the company’s cadre standards, etc.
Article 5 assessment cycle
The performance appraisal is annual. The appraisee shall summarize the completion of performance indicators, work progress and work plan for the next year in the form of work report. According to the opinions of the superior leaders of the examinee, the assessment team evaluates the assessment results in combination with the work report and the actual work performance and ability assessment of the examinee. The assessment results are directly linked to the annual salary, post change, renewal and dismissal of the examinee.
Article 6 assessment grade
The individual assessment based on the hundred mark system is divided into five categories: excellent, good, qualified, to be improved and unqualified.
Excellent: outstanding performance, greatly exceeding expectations, strong ability in all aspects, which can be regarded as an example.
Good: the work performance goal is achieved, and the ability in all aspects is among the best in the team.
Qualified: basically achieve the annual key task objectives, and the ability in all aspects is qualified to meet the post requirements.
To be improved: there is a slight gap in the achievement of annual goals, but it is not significant, and the ability in all aspects needs to be improved.
Unqualified: the annual work goal is not achieved, and all aspects of ability are not competent for the work.
Article 7 Application of individual assessment results
Reward or promote the core management personnel and technical talents with excellent performance results; Those whose performance is unqualified shall be improved, transferred or dismissed.
The salary composition of core management personnel and technical talents who are included in the annual human resource management system of the company’s headquarters and pass the examination includes the following parts:
Annual salary = monthly salary + short-term incentive + long-term incentive
The monthly salary includes basic salary, allowance and non annual floating bonus or overtime pay, which shall be paid on a monthly basis; The short-term incentive shall be paid in cash at one time according to the annual performance appraisal results of employees; Long term incentives usually include but are not limited to equity incentives and employee stock ownership plans, which are granted mainly according to the annual performance appraisal results of core managers and technicians, as well as the expectations for future work objectives and the need for long-term retention. The implementation of the part involving equity shall comply with the relevant laws and regulations of the CSRC and Shenzhen Stock Exchange.
Article 8 dispute resolution
After the assessment, the examinee has the right to know his own assessment results, and the examiner has the responsibility to feed back and explain to the examinee. If the examinee has any objection to the examiner, it shall first be solved through communication. If the performance appraisal object fails to pass the appraisal, it has the right to communicate with the human resources management center.
Article 9 ownership of interpretation power
The system is formally implemented after being deliberated and approved by the board of directors of the company. Relevant explanations and consultation belong to the human resources management center of the company.
February 17, 2022
