Employee Compensation

In addition to pursuing corporate profitability, Xuande Technology also takes the mission of fulfilling corporate social responsibility. Considering the long-term development of attracting outstanding talents, motivating and retaining existing employees, a salary system is designed to reward colleagues for their hard work. Employee remuneration is determined based on their education, work experience, professional skills and work performance, and does not differ due to age, gender, race, religion, political position, marital status, or trade union affiliation.

1. Basic salary

With reference to the salary market and the company’s operating conditions, set the salary payment standard. It will also be adjusted in due course according to changes in the overall industry prosperity, market salary dynamics, and government regulations. In 2022, the ratio of the minimum monthly salary of new grassroots employees to the statutory basic salary will be 111%.

Rank	Female/Male Salary Ratio 2022
Director and above	1:1.00
Ministerial Director	1:1.02
Class supervisor	1:1.17
Non-management	1:1.23

Note 1: Because most of the positions are in the R&D and engineering categories, most of these positions are men, and the salary market of such positions is higher than that of other positions, so the overall salary of male employees is higher than that of women.

2. Annual salary adjustment

According to the overall operating conditions of the company, salary adjustments corresponding to individual performance are made every year.

year	Overall salary increase	average salary increase
2022	0%~15%	4.52%

3. Year-end performance bonus: In order to motivate employees’ work performance, according to the management policy, set departmental work indicators and personal work goals, evaluate the individual performance of employees, and issue year-end bonuses depending on the profit status.

4. Employee remuneration: Adhering to the concept of profit sharing with employees, the company’s articles of association stipulate that if there is a profit in the current year, 1%~5% should be allocated as employee remuneration.