Stock Code: 001322 Stock Abbreviation: Arrow Home Announcement No.: 2026-010 Arrow Home Group Co., Ltd. Announcement on the 2026 Salary Plan for Senior Management The Company and all members of the Board of Directors guarantee that the information disclosed is true, accurate, and complete, and contains no false records, misleading statements, or material omissions. In order to implement the "Code of Corporate Governance for Listed Companies" and relevant regulatory requirements, further improve the salary management of the Company's senior management, and establish a scientific and effective incentive and restraint mechanism, in accordance with the "Salary Management System for Directors and Senior Management of Arrow Home Group Co., Ltd." (hereinafter referred to as the "Salary Management System"), the "Articles of Association" and other relevant regulations, combined with the Company's actual operating conditions, industry and regional salary levels, the Company's Board of Directors' Salary and Remuneration Committee has formulated the 2026 salary plan for directors and senior management. The details are as follows: I. Applicable Objects Senior management of the Company. Senior management refers to the general manager, deputy general managers, secretary of the board of directors, financial controller (chief financial officer), and other personnel recognized by the board of directors. II. Applicable Period January 1, 2026, to December 31, 2026. This plan shall take effect from the date of deliberation and approval by the Company's Board of Directors. III. Salary Plan (I) Explanation of Director Salary Arrangements The salary standards for directors of the Company (including independent directors and non-independent directors) have been clearly stipulated in the "Salary Management System" deliberated and approved by the 2025 Second Extraordinary General Meeting of Shareholders held on December 25, 2025. Namely:
- Non-independent Directors (including Employee Representative Directors) (1) Non-independent directors who concurrently hold positions as senior management shall be compensated according to the "Senior Management Salary Plan" in this plan and shall not receive separate remuneration from the Company due to their director status. (2) Directors who concurrently hold other non-senior management positions in the Company shall receive remuneration according to their respective positions and shall not receive separate remuneration from the Company due to their director status. (3) Other non-independent directors who do not hold specific positions in the Company shall have their remuneration determined by the shareholders' meeting, with a standard of RMB 120,000 per year (tax inclusive).
- Independent Directors The remuneration for independent directors of the Company shall be in the form of an allowance, determined by the shareholders' meeting. The allowance for independent directors shall be RMB 120,000 per year (tax inclusive), and the allowance for independent directors who serve as conveners of the audit committee shall be RMB 150,000 per year (tax inclusive). The reasonable expenses required for independent directors to perform their duties shall be borne by the Company. For 2026, director remuneration will be strictly implemented according to this system, and no separate plan will be submitted for review. (II) Senior Management Salary Plan The remuneration of the Company's senior management shall consist of basic salary, performance-based salary, and long-term incentive income. The proportion of performance-based salary shall generally not be less than 50% of the total of basic salary and performance-based salary, and the final actual payment amount will be determined based on the performance evaluation results.
- Basic Salary: This is a fixed salary, determined based on the position, responsibilities, capabilities, industry salary levels, and the Company's internal salary system of senior management, and is paid monthly. (1) General Manager: RMB 600,000 - 900,000 per year (pre-tax) (2) Deputy General Manager, Financial Controller, Secretary of the Board of Directors: RMB 400,000 - 900,000 per year (pre-tax)
- Performance-based Salary: This is a floating salary, the determination and payment of which are based on performance evaluation. Performance evaluation will be conducted based on audited financial data. The Company will pay a certain proportion of the performance-based salary for senior management after the disclosure of the annual report and completion of the performance evaluation. Specific performance indicators, weights, and payment details will be formulated and organized by the Board of Directors' Salary and Remuneration Committee.
- Long-term Incentive Income: This can be set up through equity incentive plans, employee stock ownership plans, etc., in accordance with the Company's development strategy. Specific plans will be formulated separately and submitted for review and disclosure in accordance with relevant regulations.
- Salary Adjustment Mechanism: The remuneration of senior management will be adjusted based on factors such as industry salary levels, inflation levels, the Company's operating conditions, development strategies, and individual position adjustments. The Board of Directors' Salary and Remuneration Committee will propose adjustment recommendations in a timely manner and report them to the Board of Directors for deliberation. IV. Payment Suspension and Recourse Mechanism The Company strictly implements the payment suspension and recourse clauses of the "Salary Management System" and regulatory provisions:
- If the Company's financial reports are restated due to financial fraud or other misrepresentations, the Company has the right to re-evaluate the performance-based salary and long-term incentive income of directors and senior management and to recover any overpaid amounts.
- If directors or senior management of the Company violate their duties and cause losses to the Company, or are at fault for financial fraud, fund occupation, illegal guarantees, or other illegal and non-compliant acts, the Company shall, depending on the severity of the circumstances, reduce or suspend the payment of unpaid performance-based salary and long-term incentive income, and fully or partially recover the performance-based salary and long-term incentive income that has already been paid during the period of the relevant acts. V. Other Explanations
- The amounts involved in the above salary plan are all pre-tax amounts. The Company will withhold and pay individual income tax, various social insurance premiums, and other amounts borne by individuals in accordance with national and company regulations.
- If a senior manager leaves office due to term changes, re-election, resignation during the term, etc., the remuneration will be calculated and paid based on their actual tenure and actual performance.
- Matters not covered in this plan shall be handled in accordance with the "Salary Management System," the "Articles of Association," and relevant national laws and regulations.
- This plan shall be interpreted by the Board of Directors' Salary and Remuneration Committee, and the Company's Human Resources Department, Finance Department, and other relevant departments are authorized to be responsible for its implementation and daily management. Hereby announced. Board of Directors of Arrow Home Group Co., Ltd. 2026 April 29