Stock Code: 002397 Stock Abbreviation: Mengjie股份 Announcement No.: 2026-015 Hunan Mengjie Home Textile Co., Ltd. Announcement on Using Common Reserve to Offset Losses and Notifying Creditors The Company and the entire Board of Directors guarantee that the information disclosed is true, accurate, and complete, and contains no false records, misleading statements, or significant omissions.
I. Reason for Notifying Creditors Hunan Mengjie Home Textile Co., Ltd. (hereinafter referred to as the "Company") held its 2026 Second Extraordinary General Meeting of Shareholders on April 10, 2026, and deliberated and passed the "Proposal on Using Common Reserve to Offset Losses." According to the "Special Attestation Report on Accounting Error Correction of Hunan Mengjie Home Textile Co., Ltd." issued by Zhonghuan Certified Public Accountants (Special General Partnership) [Zhonghuan Special Word (2026) No. 1100030], after accounting error correction, as of December 31, 2024, the Company's audited parent company statement showed retained earnings of -377,510,592.43 yuan, surplus reserve of 106,727,588.75 yuan, and capital reserve of 666,360,546.10 yuan. According to the "Company Law of the People's Republic of China," the "Notice on Financial Treatment Issues Related to the Implementation of the Company Law and the Law on Foreign-Invested Enterprises" (Cai Zi [2025] No. 101) and other laws, regulations, and normative documents, as well as the "Articles of Association," the Company intends to use 106,727,588.75 yuan from the parent company's surplus reserve and 270,783,003.68 yuan from capital reserve, totaling 377,510,592.43 yuan, to offset the parent company's accumulated losses. The capital reserve used by the parent company to offset losses this time is entirely derived from the capital (share capital) premium contributed by shareholders in monetary form. For specific details, please refer to the "Announcement on Using Common Reserve to Offset Losses" (Announcement No.: 2026-012) disclosed by the Company on the Juchao Information Network (www.cninfo.com.cn) on March 19, 2026.
II. Situation Regarding Notification of Creditors According to the provision in the "Notice on Financial Treatment Issues Related to the Implementation of the Company Law and the Law on Foreign-Invested Enterprises" (Cai Zi [2025] No. 101) issued by the Ministry of Finance, "Companies using capital reserve to offset losses should notify creditors or make a public announcement within thirty days from the date the shareholders' meeting makes the resolution to use capital reserve to offset losses," the Company hereby notifies creditors that creditors have the right to request the Company to repay debts or provide corresponding guarantees with valid debt documents and relevant certificates within 30 days from receiving the Company's notice, or within 45 days from the date of this announcement if no notice is received. If creditors fail to declare their claims to the Company within the due period, it will not affect the validity of their claims, and relevant debts (obligations) will continue to be performed by the Company according to the original debt agreement. If creditors request the Company to repay debts or provide guarantees, they should submit a written request to the Company in accordance with the "Company Law of the People's Republic of China" and other relevant laws and regulations, along with relevant supporting documents.