Securities Code: 002397 Securities Abbreviation: Mengjie Shares Announcement Number: 2026-021 Hunan Mengjie Home Textile Co., Ltd. Announcement on the 2026 Salary Plan for Directors and Senior Management The Company and all members of the Board of Directors guarantee that the information disclosed is true, accurate, and complete, and that there are no false records, misleading statements, or major omissions. Hunan Mengjie Home Textile Co., Ltd. (hereinafter referred to as the "Company") held its Fourth Meeting of the Eighth Board of Directors on April 23, 2026, and reviewed and approved the "2026 Director Salary Plan" and the "2026 Senior Management Salary Plan." The "2026 Director Salary Plan" requires approval from the 2025 Annual Shareholders' Meeting. The specific details are as follows: I. Scope of Application All directors and senior management of the Company. II. Validity Period (I) The director salary plan shall take effect after being approved by the Shareholders' Meeting and shall remain in effect until the date a new salary plan is established. (II) The senior management salary plan shall take effect after being approved by the Board of Directors and shall remain in effect until the date a new salary plan is established. III. Salary Plan (I) Director Salary Plan
- Independent Directors Independent directors will receive a fixed allowance of RMB 100,000 per year (tax inclusive) and will not participate in the company's performance evaluation. Payments will be made quarterly.
- Non-Independent Directors (including Employee Representative Directors) Non-independent directors will receive compensation based on their managerial positions. Director compensation will consist of basic salary, performance-based salary, and long-term incentives. The performance-based salary will account for no less than 50% of the total of basic salary and performance-based salary. Basic salary will be determined based on their job responsibilities, industry standards, and performance. Basic salary will be paid monthly. Performance-based salary will be determined based on the company's annual operating objectives and individual annual performance evaluation indicators. Performance-based salary will be assessed quarterly, and a portion of the performance-based salary will be paid after the annual report is disclosed and evaluated by the Board's Remuneration and Assessment Committee based on audited financial data. Long-term incentives will be determined by the company based on operating conditions and market conditions, including equity incentives and employee stock ownership plans. Specific plans will be determined separately in accordance with relevant laws and regulations and the company's operating conditions. (II) Senior Management Salary Plan Senior management will receive compensation based on their positions. Senior management compensation will consist of basic salary, performance-based salary, and long-term incentives. The performance-based salary will account for no less than 50% of the total of basic salary and performance-based salary. Basic salary will be determined based on their job responsibilities, industry standards, and performance. Basic salary will be paid monthly. Performance-based salary will be determined based on the company's annual operating objectives and individual annual performance evaluation indicators. Performance-based salary will be assessed quarterly, and a portion of the performance-based salary will be paid after the annual report is disclosed and evaluated by the Board's Remuneration and Assessment Committee based on audited financial data. Long-term incentives will be determined by the company based on operating conditions and market conditions, including equity incentives and employee stock ownership plans. Specific plans will be determined separately in accordance with relevant laws and regulations and the company's operating conditions. IV. Other Disclosures (I) The salaries and allowances of the Company's directors and senior management are all pre-tax amounts. (II) If directors or senior management leave their positions due to re-election, restructuring, or resignation during their term, their compensation will be calculated based on their actual tenure and actual performance evaluation results. (III) If directors or senior management violate regulations and cause losses to the Company, or are at fault for illegal and irregular activities such as financial fraud, fund misappropriation, or illegal guarantees, the Company may, depending on the severity of the circumstances, reduce or suspend the payment of unpaid performance-based salary and term incentives, and has the right to recover all or part of the performance-based salary and term incentives that have been paid. (IV) Any matters not covered by the salary plan shall be handled in accordance with relevant laws, regulations, normative documents, and the Company's articles of association. If the salary plan conflicts with any relevant laws, regulations, normative documents, and the Company's articles of association that are subsequently implemented and legally amended, the latter shall prevail. This announcement is hereby made. Board of Directors of Hunan Mengjie Home Textile Co., Ltd. April 25, 2026