Compensation Management System for Directors and Senior Management
Chapter 1 General Provisions
Article 1 To further improve the compensation management system for directors and senior management of Hunan Mengjie Home Textile Co., Ltd. (hereinafter referred to as the "Company"), establish a sound incentive and restraint mechanism, and fully mobilize the enthusiasm and creativity of directors and senior management, this system is formulated in accordance with the "Company Law of the People's Republic of China," the "Securities Law of the People's Republic of China," the "Corporate Governance Guidelines for Listed Companies," the "Articles of Association of Hunan Mengjie Home Textile Co., Ltd." (hereinafter referred to as the "Articles of Association"), and other relevant regulations, taking into account the actual situation of the Company.
Article 2 This system applies to the following personnel: (1) Directors, including independent directors, non-independent directors (including employee representative directors); (2) Senior management personnel, including the general manager, deputy general managers, the board secretary, the financial controller, and other senior management personnel as stipulated in the "Articles of Association."
Article 3 Principles for the compensation and performance appraisal of directors and senior management of the Company: (1) The principle of income level matching the Company's scale and performance, while being consistent with external compensation levels; (2) The principle of matching responsibilities and rights, with compensation commensurate with the level of position value and the extent of responsibility undertaken; (3) The principle of reflecting the Company's long-term interests, consistent with the goal of the Company's sustained and healthy development; (4) The principle of balancing incentives and restraints, with compensation linked to performance appraisal, rewards and punishments, and the Company's incentive mechanisms.