HLA GROUP CORP. LTD. 2024

海曾

澜

之舜

家晞

青 HLA GROUP CORP. LTD. SOCIAL

春 RESPONSIBILITY REPORT代

Address: Huashi Town Jiangyin City Jiangsu Province 言人

Postcode: 214421

Fax: 0510-86126877

Tel: 0510-86121071

E-mail: 600398@hla.com.cn

Website: http://www.hla.com

http://www.hla.com.cn

29 30HLA GROUP 2024 SOCIAL RESPONSIBILITY REPORT

CONTENTS 01 02

PREFACE SUSTAINABLE DEVELOPMENT SOLID GOVERNANCE GREEN MANUFACTURING

MANAGEMENT BUILDING THE FOUNDATION FORMING A LOW-CARBON

FUTURE

About this Report 01-02 Sustainable Development Governance 11 FOR DEVELOPMENT

Message from the Chairman 03-04 Stakeholder Communication 12-14 Governance Structure and Operation Mechanism 21-22 Responding to Climate Change 29

About HLA 05-08 Materiality Assessment 15-16 Shareholder Protection and Investor Relations 23-24 Resource Consumption 30

The Development of HLA Group 09-10 Annual Honors and Recognition 17-18 Risk Management 25 Circular Economy 31-32

Business Ethics 26 Environmental Compliance Management 32

0304

NATIONAL QUALITY PEOPLE-ORIENTED

CREATING A SUSTAINABLE BUILDING A BETTER SOCIETY APPENDIX

CONSUMPTION ECOSYSTEM

Product Quality Control 35 Labor Rights 47-50 Report Indicators Index 57

Customer Rights Protection 35-38 Talent Development 51-53 Reader Feedback 58

Innovation-driven and Intellectual 39-43 Health and Safety 54

Property Protection

Responsible Supply Chain 44 Social Contribution 55-56

29 30HLA GROUP 2024 SOCIAL RESPONSIBILITY REPORT Preface Sustainable Development Solid Governance Green Manufacturing National Quality People-Oriented Appendix

Management Building the Foundation Forming a Low-carbon Creating a Sustainable Building a Better Society

for Development Future Consumption Ecosystem

About this Report

Introduction Data Source

This report is the eighth corporate social responsibility report released by HLA Group. The previous report The sources of data disclosed in this report include:

was released in 2024 and the release cycle of this report is one year consistent with previous reports.This report showcases HLA Group's management practices and performance in key areas such as *Relevant statistics within HLA Group

environment society and governance in 2024 presenting the company's exploration and progress on the *Publicly disclosed data

path of sustainable development. *Public data from third-party surveys government departments and professional institutions

To enhance the comparability and completeness of the report some parts of this report extend beyond

the time frame.Scope Name Explanations

The organization scope of this report is HLA Group Co. Ltd. and its subsidiaries. If there is any inconsis- For ease of expression and reading in this report:

tency between the specific data scope and the scope of this report it will be noted in the main text.*"HLA Group Co. LTD." is collectively referred to as "HLA Group".*"HLA Group" may also be referred to as "the company" "the enterprise" "the group" or "we" in the

report.Criteria Report Access

This report is based on the following international and domestic authoritative ESG standards: This report is published in Simplified Chinese and English and is available for public download. You can

download the electronic version of this report on the website of the Shanghai Stock Exchange

*Global Reporting Initiative (GRI) Sustainability Reporting standards (www.sse.com.cn).*International Sustainability Standards Board (ISSB) International Financial Reporting Sustainabil- In case of any discrepancy between the Simplified Chinese version and the English version the simplified

ity Disclosure Standard(General Requirements & Climate-related disclosures) Chinese version shall prevail. Relevant reports and data from previous years can be accessed through the

*Chinese Academy of Social Sciences' Sustainability Reporting Guidelines for Chinese Enterprises above channels.

(CASS-ESG 6.0)

*Shanghai Stock Exchange 'Self-regulatory Guidelines for Listed Companies No. 4 - Preparation of

Sustainability Reports'

*Standardization Administration of the People's Republic of China General Administration of Disclaimer

Quality Supervision Inspection and Quarantine of the People's Republic of China Guidelines for This report is prepared in accordance with the laws and regulations of the regions where HLA Group

the Preparation of Social Responsibility Reports (GB/T 36001-2015) operates and the company's development strategy and is based on corporate social responsibility

performance up to the reporting period. The data and information involved are from reliable sources.This report is for stakeholder reference only and does not constitute any investment advice nor should it

replace the independent judgment of the reader. In the event of any inconsistency between the contents

of this report and the statutory disclosure document the statutory disclosure document shall prevail.This report may contain forward-looking statements based on current operating conditions and actual

results may differ due to risk factors or force majeure. HLA Group shall not be liable for any misunder-

standing or loss arising from the use of the information in this report.

01 02HLA GROUP 2024 SOCIAL RESPONSIBILITY REPORT Preface Sustainable Development Solid Governance Green Manufacturing National Quality People-Oriented Appendix

Management Building the Foundation Forming a Low-carbon Creating a Sustainable Building a Better Society

for Development Future Consumption Ecosystem

Message from the Chairman：

Continuous Journey Boundless Innovation

HLA Group has remained steadfast in its brand apparel development path. We don't follow the beaten track. Instead we constantly

break our thinking create distinctive clothing brands improve the efficiency of the clothing industry chain and explore new models

of clothing retail. Over the past decade we have walked with firm steps and a wider path thanks to the efforts of every HLA employee

and the support of all our partners.It is the joint efforts of all of us that have enabled HLA Brand to remain the leader in men's wear and hold th1e top market share for ten

consecutive years 1 . We have built a 5G smart factory and smart supply chain for cloud clothing and taken the lead in achieving digital

and intelligent transformation in the industry. With nearly 6000 physical stores and numerous online platforms a new ecosystem of

“All for One Retail” is formed; It made HLA the first clothing brand to be included in the "Brand Power Project - Leading Brand" in 2023.Looking ahead to the next decade we will follow the principle of "focusing on brands embracing the world and benefiting life" with

the goal of "becoming a world-class leading brand apparel retail group in China" from being excellent to leading from walking alone

to together not only building brands that people love and trust but also exporting our own strengths and capabilities and cooperat-

ing deeply with outstanding global brands. We will explore new possibilities in brand management and apparel retail to achieve a new

leap in the new decade.The period from 2025 to 2030 is a crucial stage for achieving this new leap so we have proposed the "Strategic Upgrade Plan for

2025-2030" focusing on the following strategic directions:

1. Focusing on Core Apparel Business and Innovating Brand Management and Retail

Maintain a state of flow and focus on the core business of clothing. Continue to strengthen the integrated capabilities of brand opera-

tion supply chain management and channel operation to achieve long-term effective growth of the clothing business. Start with

clothing to create a better lifestyle for more people.To meet people's diverse needs and individual expressions HLA Group has incubated popular brands such as HLA Brand HLA F2C

OVV and HLA JEANS covering various clothing segments including men's wear women's wear and professional wear. In the future

we will continue to invest in brand building constantly innovate products and make our brand beloved by more people.In addition we will work with our partners to create "brand clothing collection stores" based on the consumption demands of different

cities carefully selecting high-quality brands and products and continue to explore new possibilities in clothing retail.

2. Embracing the World and Expanding Brand Presence

Extend from self-owned brand incubation to in-depth brand cooperation. We will strengthen cooperation with high-quality global

brands to build a multi-brand matrix. Over the past three years we have established strategic partnerships with HEAD and Adidas with

in-depth cooperation in brand operation supply chain management and channel operation respectively.If you want to go fast go alone. If you want to go far go together. In the future we will continue to expand our social circle import more

quality international brands and offer consumers more diverse choices.From importing to going out internationalization is another important part of our brand expansion. We will take root in Southeast

Asia radiate to the Asia-Pacific region look to the world and cultivate overseas markets with the attitude of "being local and serving

local". Now we have covered Singapore Malaysia Thailand Vietnam the Philippines Kenya Laos Maldives and other regions and we

will continue to expand into the Middle East Central Asia and Australia.

3. Benefiting Quality Living to Meet People’s Aspirations

The pursuit of a better life is the aspiration of all people and the realization of their pursuit is our intention and mission. We want to

return to the essence of retail and through our strong supply chain and channel integration capabilities provide more people with

high-quality products that are both good in quality and low in price to meet people's upward pursuit of a better life and the high-quali-

ty development of modern society.Since last year we have formed a strong partnership with JD.com to create JD Outlets based on the resource advantages of both sides

providing consumers in growing cities with more cost-effective premium brand products and convenient shopping experiences. From

clothing light luxury sports and outdoor to boots and shoes it enables more consumers to easily experience and purchase the

world's top brands right at their doorstep. We will also expand to more cities in the future to bring people closer to a better life.Under the 2030 policy of "Focusing on Brands Embracing the world and benefiting Life" HLA Group will continue to empower quality

brands share responsibilities with partners and build two-way connections between China and the world begin with clothing &

accessories so that more people can enjoy a better lifestyle. This is the original intention and will remain so in the future!

Inspiring a beautiful life from clothing & accessories. 2025 let's keep moving forward!

Chairman: Louis Zhou

1 Data Source: Securities Times（https://wap.egsea.com/detail/articleid=1769694）

03 04HLA GROUP 2024 SOCIAL RESPONSIBILITY REPORT Preface Sustainable Development Solid Governance Green Manufacturing National Quality People-Oriented Appendix

Management Building the Foundation Forming a Low-carbon Creating a Sustainable Building a Better Society

for Development Future Consumption Ecosystem

About HLA

Corporate culture“: Inspiring a beautiful life from clothing & accessories.”

Company Profile HLA Group is a leading apparel and lifestyle retail group in China. Its business portfolio

includes proprietary brand operations international brand agency group purchase

customization and the JD Outlet partnership. The company owns multiple in-house

brands including its flagship brand "HLA" the women's fashion brand "OVV" the

trend-focused brand "HLA JEANS" and the infant and children’s brand "YeeHoO". In

terms of international brand cooperation the company is the exclusive agent for the

Austrian sports brand HEAD in China and holds exclusive retail rights for Adidas FCC

series products in mainland China. Additionally the company operates a professional

attire customization service under the name "HLA F2C". In 2024 the company partnered

with JD.com to launch the "JD Outlet" initiative aiming to expand its market share and

enhance competitiveness through a multi-brand omnichannel strategy. The key brands

and business segments of the company are summarized as follows:

海澜之家 | HLA

HLA founded in 2002 has long been committed to being a reassuring and comforting

domestic brand offering stylish designs quality products and humanized clothing

experiences to men aged 20 to 45 and standing firm in the market as a friendly and

deeply rooted "national brand".We firmly believe that good clothing is alive not only to enhance personal comfort and

dignity but also to believe in and affirm the unique self-worth of every ordinary yet

extraordinary individual in China. Therefore adhering to the product philosophy of

adapting to the human body improving human posture meeting human needs and

reaching human expectations we continuously enhance inclusiveness and coverage

iterate design professionalism keep up with contemporary changes in needs and

improve insight and empathy. We create vibrant clothing to serve the brilliance of every

individual.OV V

Founded in 2017 OVV is dedicated to creating modern wardrobes for professional

independent women with "effortless sophistication". Based on the concept of harmony

it promotes honest and valuable pragmatism blending design sense stylization and

applicability to create value for contemporary women from the inside out.

05 06HLA GROUP 2024 SOCIAL RESPONSIBILITY REPORT Preface Sustainable Development Solid Governance Green Manufacturing National Quality People-Oriented Appendix

Management Building the Foundation Forming a Low-carbon Creating a Sustainable Building a Better Society

for Development Future Consumption Ecosystem

About HLA

黑鲸 | HLA JEANS Adidas FCC

As a trendy men's wear brand under the group HLA Jeans has always been committed The Adidas FCC（Future City Concept） is a new product line for emerging markets launched by Adidas China and the

to exploring the attitude of contemporary youth adhering to the spirit of "being differ- company which is positioned to offer consumers products with better value for money. The company holds an exclu-

ent" with "community culture × Joyful life " as the brand focus penetrating different sive retail authorization for Adidas FCC series products in Mainland China through its controlled subsidiary SIBOZI-

cultural circles and co-creating a new way of trendy life with Chinese youth. The Brand Management (Shanghai) Co. Ltd. of the Adidas FCC series products in mainland China.product line is divided into three series: the basic and versatile "Mei + " series the trendy

and quality "Cool i+ " series and the fun and exclusive "Collaboration" series to meet the

needs of young people in different life situations and create a fashion aesthetic that is

simple quality technological and cost-effective. HLA F2C

As the leader in China's clothing group-buying business HLA F2C started in the 1990s and has been dedicated to the

business for more than two decades. By continuously focusing on workplace needs and personalized experiences and

英氏 | YeeHoO drawing on the multi-brand expertise of HLA Group we create all-round wardrobes for professional elites with products that combine craftsmanship and intelligent manufacturing and create high standards of product value for the industry.HLA F2C adopts an independent production and operation model to provide personalized clothing products for finan-

YeeHoO is now the group 's own premium baby lifestyle brand. established in 1995 cial communication transportation energy government agencies education and other enterprises and institutions

YeeHoO has been dedicated to high-quality life and growth products for infants and including men's and women's suits trousers waistcoats skirts shirts jackets overcoats windbreakers down jackets

toddlers aged 0-6. Starting with the improvement of the first modern onesie it has windbreakers and other categories of clothing. In particular its flagship products such as "fine suits" "non-iron shirts"

always insisted on using globally selected fabrics and international leading manufactur- and "fine non-iron shirts" are highly favored by the market.ing technology. It has also collaborated with top international maternal and infant

brands to create a one-stop premium baby and toddler collection store in China

earning word-of-mouth from three generations of mothers.The brand adheres to the product philosophy of "purity softness cleanliness and JD Outlets

beauty" adheres to the Class A standards for infants and toddlers conducts 15 strict

quality inspections and consistently offers "valuable design". Our products cover all

categories including baby underwear outerwear cribs bedding chairs shoes hats

socks and toiletries and we have developed five core competencies: We have a solid JD Outlets is a city outlet format jointly launched by the company and JD.com. It adopts the strategy of "big brands at

market share and position in the industry and have won many important awards that low prices" and opens "JD Outlets" discount stores offline aiming to enable consumers to purchase genuine big brands

are well-known in the industry and recognized by consumers at home and abroad. Our with higher cost performance right at their doorstep.products are sourced from natural and high-quality raw materials are suitable for the The project mainly covers categories such as sports and outdoor men's and women's wear children light luxury and

body shape of Chinese babies have strict craftsmanship and quality inspection

standards that are higher than the national standard have a design concept that beauty products. The stores are home to sports and outdoor brands such as Nike Adidas Puma Under Armour Asics

enlighten beautiful values and have reached strategic cooperation with international and North Face light luxury brands such as COACH and MCM beauty brands such as Dior Givenchy Estee Lauder SK-II

quality products. and CPB as well as well-known men's and women's apparel brands.HEAD | 海德

As a competitive sports brand with a history of over 70 years HEAD with its first-class

athletes as the core asset has become the designated equipment supplier for many

world champions in various competitive sports including skiing and tennis thanks to its

profound historical accumulation pure professional sports heritage and cutting-edge

precision technology and craftsmanship.The group will continue to develop professional sports line products based on the brand

genes of tennis and skiing as well as full-journey apparel and equipment both on and

off the field to meet the needs of sportswear and equipment in various scenarios of

sports life from professional competitive-level athletes to sports enthusiasts to support

and help them experience the charm of sports break through their own limitations and

provide them with everything they need to win.

07 08HLA GROUP 2024 SOCIAL RESPONSIBILITY REPORT Preface Sustainable Development Solid Governance Green Manufacturing National Quality People-Oriented Appendix

Management Building the Foundation Forming a Low-carbon Creating a Sustainable Building a Better Society

for Development Future Consumption Ecosystem

The Development of HLA Group

20012021

Renamed HLA Group Co. Ltd. and

Renamed Kainuo launched a multi-brand

1997 Technology Co. Ltd. multi-category group-oriented 2023strategic roadmap aiming to

The company was established 2017 2019 build a comprehensive lifestyle Selected as part of CCTV’s Brand with fine spinning capacity retail group. Power Project Title sponsorship

ranking among the top in China. Launched multiple brands including HLA JEANS and OVV Acquired a baby and children’s

of a launch vehicle.with strategic footholds in Kuala apparel brand YeeHoO gradually

Lumpur and Malaysia to drive forming a diversified brand

overseas growth. portfolio covering menswear womenswear childrenswear and

professional attire.

2014 2020The new Chairman Zhou

2000 Successfully listed on the Lichen (Louis Zhou) has 2024A-share market. Renamed HLA 2018 taken office. Formed a strategic partnershipListed on the Shanghai Stock Co. Ltd. with brand apparel Received investment from with JD.com launching“ JDExchange in 2000 with the stock operations formally established Tencent accelerating industrial Outlets”; "More Warm” Project 10

code 600398 under the abbrevia- as its core business. integration and upgrading and Years Anniversary

tion "Dechen Co. Ltd.". achieving a win-win scenario in 2022

the new retail fashion industry. The 20th anniversary of HLA brand.

09 10HLA GROUP 2024 SOCIAL RESPONSIBILITY REPORT Preface Sustainable Development Solid Governance Green Manufacturing National Quality People-Oriented Appendix

Management Building the Foundation Forming a Low-carbon Creating a Sustainable Building a Better Society

for Development Future Consumption Ecosystem

Sustainable HLA Group regards sustainability as a core priority for the enterprise to remain competi- HLA Group understands maintaining effective and smooth communication with multiple stakehold-tive and socially valuable in the new era and is committed to fully embodying the ESG Stakeholder ers is an important channel for enhancing sustainable value. To this end the company identifies the

Development (Environment Society Governance) concept in its business strategy and internal expectations and concerns of stakeholders in various ways and responds to them in business governance. To better coordinate and implement all ESG efforts the company has Communication decisions and ESG management.Management established a relatively independent and efficient sustainable development governance system to ensure that sustainability issues are given full attention in the

internal management process. Stakeholder Identification and Primary Communication Channels

Sustainable Development Governance

Framework The company has long classified its major stakeholders as: government and regulatory authorities shareholders and investors customers (consumers) employees suppliers and franchisees communities and the public media etc.The company has established a top-down Sustainable Development Manage- Board of Directors

ment system with clear rights and responsibilities to ensure that the concept of （Setting key performance and monitoringthe implementation of objectives）

sustainability is embedded in the company's strategy.The board of directors is the highest management body for the company's Stakeholders Expectations Communication

sustainable development responsible for reviewing the company's overall & Channels Feedback & ActionsDemands

sustainable development strategy important goals and major issues to ensure

that the company's development direction is in line with the requirements of the · Compliant operation Government research Respond promptly to new regulatory rules

sustainable development strategy. · Tax Compliance policy symposiums enhance the corporate governance

Management as the core of strategy execution promotes the implementation of Management Governments · Environmental Protection submission of compliancevarious sustainable development tasks in a coordinated manner and supervises （Set sustainability goals and communicate and · Energy Conservation reportsand tracks key performance indicators. requirements to functional ） Regulators · Emission Reduction

The working group formulates plans based on strategic goals and management

deployment in line with the responsibilities of the department and implements

them in daily operations and management to achieve a closed loop of responsi-

· Corporate Governance Annual/extraordinary Announcement of operating data and ESG

bility and continuous improvement.· Financial Performance general meeting earnings performance keep communication

This system strengthens the synergy among strategic planning organizational

· Risk management briefings channels open and effective

assurance and execution providing strong support for the steady advancement Shareholders · Information disclosure

of the company's sustainable development strategy Working Groups and（Implementation of indicators and collection of information） Investors

HLA Group has always been committed to building a more systematic and forward-looking sustainable develop- · Product Quality and Safety After-sales service hotline Upgrade products and services based on

Sustainable ment strategy focusing on deeply integrating environmental and social factors with the company's financial · Service Experience online social platform feedback

Development Strategy performance identifying and managing issues that have a critical impact on the company's value creation risk Customers · Environmental Responsibility satisfaction survey

control and long-term stable operation. Looking to the future the group will further integrate the concept of (consumers)

sustainability into its brand strategy and daily operations build an environmental social and governance (ESG)

management system covering the entire value chain under the overall policy of "focusing on the brand embrac-

ing the world and benefiting life" and continuously improve its overall performance and industry leadership in

sustainability.· Compensation and Benefits Staff congresses internal Develop training and incentive policies and

· Career Development forums and questionnaires establish employment system and compen-

Employees · Safety and Health departmental meetings sation framework aligned with the compa-

In terms of the environment the group will rely on 5G smart factories and digital supply chain capabilities to · Corporate Culture ny’s development

Environment continuously optimize resource utilization efficiency and reduce the burden of energy consumption and

emissions. Key areas include the development and application of sustainable products the introduction of

energy-saving and consumption-reducing technologies and the green transformation of operations.In terms of social responsibility the group will strengthen the employee development system to safeguard labor · Cooperative Stability Supplier evaluation and Develop supplier evaluation and assessment

rights and health and safety. At the same time in combination with the "All for One Retail" layout we will · Social and Environmental coaching joint meetings site system enhance industry dialogue and

Social Responsibility expand community co-construction and public welfare cooperation projects promote high cost-performance Responsibility visits and audits collaboration uphold fairness impartiality

products to reach more regions and expand the positive role of inclusive consumption in social well-being. Suppliers · Delivery Quality and transparency in bidding activitiesand

Franchisees

In terms of governance the group will improve the ESG management mechanism further clarify the responsi-

Administer bilities for sustainable development enhance the ability to identify and respond to risks improve the compli-ance management and business ethics system and enhance the resilience and stability of business

operations.

11 12HLA GROUP 2024 SOCIAL RESPONSIBILITY REPORT Preface Sustainable Development Solid Governance Green Manufacturing National Quality People-Oriented Appendix

Management Building the Foundation Forming a Low-carbon Creating a Sustainable Building a Better Society

for Development Future Consumption Ecosystem

Stakeholder 1 Institutional InvestorsShareholders & 2 Strategic Partner Investors

Communication Investors 3 Individual Investors

1 Online Consumers

Customers & 2 Offline Individual Consumers

Stakeholders Expectations& Communication

Consumers 3 Institutional Clients

Channels Feedback & ActionsDemands 4 Overseas Clients

1 Senior Management

· Community Engagement Public welfare activities Publicize the results of public welfare 2 Specialists and Engineers

· Philanthropy local cooperation projects actions and actively participate in local Employees &

· Environmental protection public welfare and public affairs Labor Unions 3 Middle Management

Communities · Employment support 4 Front-line Staff

1 National Regulatory Authorities

Government &

· Corporate News Coverage Press conferences press Timely release of the company's major 滚滚长江东逝水 Regulatory Authorities 2 Industry Regulatory Authorities

· Social Responsibility interviews company developments and ESG initiatives to raise 3 Local Government Departments

Projects announcements public and media awareness of the

Media · Industry impact company's responsible image 1 Raw Material Suppliers

Suppliers 2 Logistics and Warehousing Partners

and 3 Technology and Equipment Suppliers

Partners 4 Advertising and Media Partners

HLA Group 5 Sales and Distribution Partners

Sustainability Stakeholder Map

1 Social Media

1 2 Mainstream Media

2 3 Sustainable Development Related Media

3 4 Industry Professional Media

4

4 5 Factory Neighborhood Communities3 3 5 6 Consumer Rights Protection Organizations

216

2

1 stakeholders involved stakeholders impacted 7 Think Tanks and Research Institutions

12

3 8 Industry Associations

(∞)外部 (∞)关联 (∞)紧密 (∞)核心 E S G

1 (∞)核心 (∞)紧密 (∞)关联 (∞)外部 Others

2 9 Logistics and Supply Chain Associations

13

10 Textile Industry Associations

14217

1 8 12 Local Communities

3211

3 Economic and Management Academies15 5 4 94 10 13 Charitable Organizations

11 14 Environmental NGOs

15 Social Responsibility Guidance Bodies

13 14HLA GROUP 2024 SOCIAL RESPONSIBILITY REPORT Preface Sustainable Development Solid Governance Green Manufacturing National Quality People-Oriented Appendix

Management Building the Foundation Forming a Low-carbon Creating a Sustainable Building a Better Society

for Development Future Consumption Ecosystem

Materiality HLA Group uses the "Double-Materiality Assessment" approach to systemati-cally rank and evaluate potential issues in two dimensions: "importance to the

Assessment company's financial impact" and "importance to the company's social and environmental impact". The company referred to standards such as GRI ISSB

and the Shanghai Stock Exchange 'Sustainability Reporting Guidelines' to

ensure the international universality and local applicability of the analysis

method.Process and Results HLA Group Sustainability Materiality Matrix

Environmental Topics Social Topics Governance Topics

Based on the company's business characteristics industry hotspots as well as domestic and

Issue Primary Selection international ESG standards (GRI ISSB) and regulatory guidelines (such as the "Sustainability

Product Quality

Reporting Guidelines" of the Shanghai Stock Exchange) a list of 18 potential issues covering the fields ControlSustainable

of environment society and governance is compiled. Procurement Customer Rights Protection

Labor Rights

Business Ethics

ESG Management

Innovation and Intellectual Circular

Collect evaluations of the importance of the issue from various stakeholders through questionnaires Property Protection Economy

Stakeholder Research symposiums interviews etc. Focus on listening to multiple perspectives taking into account both

financial and non-financial dimensions. Clean Production Talent Development

Resource

Utilization

Employee Supply Chain

Health and Safety Management Risk Management

The working group works with departments such as finance strategy and risk control to assess the

Internal Review & extent to which each issue affects the company's financial performance (such as earnings costs

Quantification investor confidence) and sustainable operations (such as environmental friendliness employee

stability brand reputation) using quantitative or weighted scoring methods.Shareholder Rights Protection

and Investor Relations

Climate Change

Response

Map Out the Materiality Matrix Visualize the assessment results under the "Double-Materiality" dimension as a two-dimensional Governance Structure and

matrix (charts can be inserted in the report) distinguishing high mediumand low priority issues. Operational Mechanism

Social Contribution

Incorporate high-priority issues into the company's annual ESG priorities develop corresponding

Issue identification and action management strategies and measures disclose them externally and review performance regularly;

Mid and low priority issues will also be followed up or reserved in a timely manner.Importance to the Company's Financial Impact

1516

Importance to Sustainable Development of the CompanyHLA GROUP 2024 SOCIAL RESPONSIBILITY REPORT Preface Sustainable Development Solid Governance Green Manufacturing National Quality People-Oriented Appendix

Management Building the Foundation Forming a Low-carbon Creating a Sustainable Building a Better Society

for Development Future Consumption Ecosystem

Annual Honors and Recognition

Name of Honor Awarding Unit

National Green Factory Ministry of Industry and Information Technology

Excellence-level smart factory Ministry of Industry and Information Technology

Typical cases of quality improvement and brand building in

industry and information Technology in 2024 Ministry of Industry and Information Technology

(HL-CEcqb model promoting Brand building of Ecological-level quality standards for clothing)

Pilot demonstration Project of Industrial Internet 2023 Ministry of Industry and Information Technology

(Pilot Project of Network Integration Innovation Application for the clothing industry)

China's textile and garment Brand Competitiveness Advantage Enterprises in 2024 China National Textile and Apparel Council

Second Prize for Scientific and Technological Progress of China

National Textile and Apparel Council China National Textile and Apparel Council

(Key Technologies and Industrial Application of Digital Multi-dimensional Garment Cutting)

List of CNTAC Digital Transformation units China National Textile and Apparel Council

Key recommended projects for technological innovation

in China's garment Industry in 2024 China National Garment Association

(Hailan Yunfu Smart Factory Industrial Internet Integration Innovation Industrial Application)

Top 70 Chinese Workwear Enterprises in 2024 China National Garment Association

China's 500 Most Valuable Brands 2024 GYBrand Global Brand Research Institute

The 9th Cherry Awards - Outstanding Performance Award for

Children's Clothing Brand of the Yea（r YeeHoO） Organizing Committee of the Cherry Awards

The 9th Cherry Awards - Product of the Year Appearance Level Award Organizing Committee of the Cherry Awards

(YeeHoO 'P&P' Series)

First Prize and Outstanding Designer Award of Henan Education Equipment Expo

and Higher Education Achievements Exhibition Henan Educational Equipment Expo

(HLA F2C Customized Design of "Dynamic Youth" and "Peach and Plum Path" series school uniforms)

Selected for CCTV's "Brand Power Project - Leading Brand" for three consecutive years China Media Group

The 11th Golden Wheat Awards "Best Influential Brand Award" Organizing Committee of the Golden Wheat Awards

"Performance Marketing Bronze Award"

Strategic Partner for Standardization Work in 2024 National Technical Committee on Garment Standardization

Advanced Unit for Standardization Work in 2024 National Technical Committee on Garment Standardization

17 18HLA GROUP 2024 SOCIAL RESPONSIBILITY REPORT Preface Sustainable Development Solid Governance Green Manufacturing National Quality People-Oriented Appendix

Management Building the Foundation Forming a Low-carbon Creating a Sustainable Building a Better Society

for Development Future Consumption Ecosystem

01

Solid Governance

Building the Foundation for Development

Main Contents Governance Structure and Operation Mechanism 21-22 Responding to the SDGs：

Shareholder Protection and Investor Relations 23-24

Risk Management 25

Business Ethics 26

19 20HLA GROUP 2024 SOCIAL RESPONSIBILITY REPORT Preface Sustainable Development Solid Governance Green Manufacturing National Quality People-Oriented Appendix

Management Building the Foundation Forming a Low-carbon Creating a Sustainable Building a Better Society

for Development Future Consumption Ecosystem

1.1 Shareholders' Meeting

In 2024 the company held a total of two general meetings to review 13 proposals. During the shareholders' meeting the company had sufficient communica-

Governance HLA Group strictly adheres to laws and regulations such as the Company Law of the

tion and exchange on important matters such as corporate strategic development financial status dividend policy and changes in directors. Through the

People's Republic of China the Securities Law of the People's Republic of China and shareholders' meeting the company listens to shareholders' suggestions and provides timely feedback enabling shareholders to have a deep understanding

the Guidelines for the Governance of Listed Companies continuously optimizes the of the company's business strategy and performance and fully guaranteeing shareholders' right to participate in and be informed of the company's Structure and corporate governance structure and operation mechanism and constantly improves governance.Operation the governance level and decision-making efficiency.In 2024 the company conducted a systematic assessment and improvement of its

Mechanism governance structure with a focus on formulating key institutional documents such Key Performance Indicators

as the Management Measures for Independent Directors of HLA Group Co. LTD. the

Entrusted Wealth Management System of HLA Group Co. LTD. and the Public

Opinion Management System of HLA Group Co. LTD. Further strengthen the manage-

ment of independent directors compliance with fund operations and information Total board members: Number of board meetings: Total number of proposalsreviewed by the board:

management mechanisms. At the same time the company has revised and

optimized the implementation rules of the various special committees of the board of 9 with 3 independent directors 7 33

directors continuously improving the standardization and professionalization of the

governance system.Total supervisoryboard Number of supervisory Number of proposals

members: board meetings: under review by the board:

3 with 1 employee representative supervisor 4 17

The Board of Directors the Board of Supervisors and Management

Number of shareholders' meetings: Number of proposals under reviewat the shareholders' meeting:

The company has always attached great importance to the professional competence and operational efficiency of the board of directors the board of 2 13

supervisors and the management team and is committed to building a scientific standardized and efficient governance system.The board members have diverse professional backgrounds in law finance strategic management corporate governance etc. and can provide professional

decision support for the company's development. As of the end of the reporting period the board consists of nine members including three independent 海澜之家集团组织框架图 HLA Group Organizational Structure

directors. Each director has extensive industry experience and professional expertise ensuring that the company has a multi-dimensional perspective and

careful consideration in strategic planning risk management and decision-making on major matters. In 2024 the board held seven meetings and reviewed 股东大会 Shareholders' Meeting

33 proposals covering key issues such as the company's development strategy and personnel appointments and dismissals. Independent directors played 监事会 Board of Supervisors

a supervisory and professional advisory role throughout the process to ensure the scientific and compliant nature of the decisions.董事会 Board of Directors

The company changes its board of directors every three years and has a sound nomination and selection mechanism that considers the candidates' industry

experience educational background and ability structure to enhance the professional diversity and governance capacity of the board. The company strictly 审 董事会办公室 Office of the Board of Directors战 提 薪

adheres to the "Articles of Association of HLA Group Co. LTD." and has established clear rules of procedure for the board of directors ensuring that the 计 略 名 酬委 委 委 与 总经理 General Manager

materials are fully prepared before the meeting the decision-making process is standardized and transparent and the resolution content is legal and valid. 员 员 员 考会核

The supervisory board in accordance with the duties conferred by laws regulations and the Articles of Association strengthens and implements the supervi- 会 会 委

sory and inspection functions and gives full play to the role of the supervisory board in the governance of listed companies. At present the supervisory board 员

Internal Control 会

consists of three members including one employee representative supervisor. In 2024 the supervisory board held four meetings reviewed 17 proposals and 内控部 Department

deliberated on matters such as financial reporting internal control and related-party transactions effectively fulfilling supervisory duties promptly identify-

ing and correcting potential risks and ensuring the company operates in accordance with the law and regulations. 董 人 财 法 战 广 资 海 海 英 新 斯 品事力务务略告本澜澜氏业搏牌

All members of the company's management team have rich industry experience and excellent management capabilities. Through efficient collaboration and 长 资 部 部 信 部 投 之 团 事 事 务 兹 孵

forward-looking management the management team is committed to promoting the realization of the company's high-quality development goals and 办 源 息 资 家 购事 业 业 发 事 化

continuously enhancing the company's overall strength and market resilience in a sustainable competitive landscape. 公 部 中 部 品 业 中 中 展 业 事室心牌中心心部中业心心部

2122

Brand Incubation Division

SIBOZI

New Business Development

Department

Yeehoo

OVV

O V V

HLA F2C

HLA

Capital Investment Department

Advertising Department

Strategic Information Center

Remuneration and

Appraisal Committee Legal Department

Nomination

Committee Finance Department

Strategy Committee Human Resources Department

Audit Committee Chairman's OfficeHLA GROUP 2024 SOCIAL RESPONSIBILITY REPORT Preface Sustainable Development Solid Governance Green Manufacturing National Quality People-Oriented Appendix

Management Building the Foundation Forming a Low-carbon Creating a Sustainable Building a Better Society

for Development Future Consumption Ecosystem

1.2

Shareholder Rights Protection and Key Performance Indicators

Investor Relations

Transparent and Timely The group has always adhered to the principles of fairness and timeliness in information disclosure.Information Disclosure Directors supervisors and senior management of the company have performed their duties faithfully and diligently to ensure that the disclosed information is truthful accurate and complete. They have safeguard-

ed investors' right to know with an honest and pragmatic attitude and enhanced the company's market

reputation.In accordance with the requirements of the "Information Disclosure Affairs Management System" the Number of periodic Number of interim Number of earnings

company has improved the internal management process of information disclosure and established the reports issued: announcements issued: briefings organized:

information disclosure responsibility system to ensure the standardization and efficiency of information

disclosure work. 4 52 3

Throughout the year the company issued a total of 4 periodic reports and 52 interim announcements

disclosing important information such as the company's operating performance and financial status in

detail enabling investors to keep abreast of the company's dynamics and understand its true situation in a

timely manner.Active and Effective HLA Group attaches great importance to investor relations management adhering to the principles of openness transparency and efficient communication and actively maintains close communication with

Investor Communication investors. The company has established a dedicated investor relations team responsible for daily commu-

nication with investors investor hotline services and the management and operation of the information 1.3

interaction platform.Throughout 2024 the company organized 3 earnings briefings where directors and senior management

discussed the company's operating performance industry trends and future development strategies Risk HLA Group adheres to the concept of compliance operation continuously improves various management answered questions of concern to investors on the spot and enhanced investors' understanding and systems and optimizes management processes clarifies the responsibilities and authorities of each

confidence in the company's operating conditions. In addition the company actively answered calls from Management department and personnel conducts audits on key links in the operation process and continuously

investors throughout the year and responded to questions raised by investors through the investor interac- optimizes the risk management activity process to achieve the control goals of strengthening internal

tion platform covering multiple dimensions such as the company's future dividends and financial data control preventing risks and promoting compliance.analysis.HLA Group continues to implement an aggressive cash dividend policy to reward shareholders. The Compliance Building

A Prudent Shareholder company has reasonably determined the amount and frequency of dividends based on various factors

Return Policy such as overall earnings capital needs and development strategies to ensure the long-term stability of the

dividend policy. In September 2024 the interim dividend policy was implemented for the first time fully Establish internal systems covering material procurement design and development project construction contract management related-party transactions

demonstrating the company's solid financial strength and its emphasis on long-term value returns for etc. Promote the standardization process and institutionalization of internal management organize senior executives and employees to study relevant rules

investors. and regulations and ensure the legal and compliant operation of the company.Dividend Year Payout Date Pre-tax Dividend(RMB/Share) Pre-tax Total Payout (RMB) Risk Prevention and Control

20222023.06.060.431857431261.55

We have established a risk management system covering the entire process of risk identification assessment monitoring and control. According to the

2689551365.76 process we have conducted risk identification for each business assessed each risk level and formulated corresponding control measures for each business 2023 2024.06.06 0.56 risk in a timely manner to ensure effective response to each risk.

2024 H1 2024.09.05 0.23 1104637168.08 Internal Audit

2024H2（Estimated） 0.18 864498653.28

According to the "Internal Control Evaluation Specification" and the "Internal Audit Management System" the Internal Control Department conducts an

In addition the company actively listens to the opinions and suggestions of investors regarding the dividend policy fully considers the demands of investors annual self-assessment of internal control makes an independent and objective evaluation of the effectiveness of the design and operation of the compa-

when formulating the shareholder return policy and continuously optimizes the shareholder return mechanism to ensure a good alignment between the ny's internal control and engages third-party independent institutions to audit the company's internal control and continuously improves the company's

long-term interests of investors and the company's sustainable development goals. internal control system.

23 24HLA GROUP 2024 SOCIAL RESPONSIBILITY REPORT Preface Sustainable Development Solid Governance Green Manufacturing National Quality People-Oriented Appendix

Management Building the Foundation Forming a Low-carbon Creating a Sustainable Building a Better Society

for Development Future Consumption Ecosystem

1.31.4

Risk Business HLA Group earnestly implements relevant laws and regulations such as the Company Law of the People's Republic

Management Ethics of China and the Anti-Unfair Competition Law of the People's Republic of China and always advocates and practices the business philosophy of integrity honesty and fairness.

01 The company has established specific responsibilities and defined behavioral standards for Management employees in each position in accordance with internal regulations such as the Anti-Fraud Manage-

01 02 System ment System and the Evaluation Management System for Corporate culture Construction. Through institutional constraints and enforcement mechanisms a sound integrity management system is

established to provide institutional guarantees for the stable development of the enterprise.Risk Risk

Identification Assessment 02 The company strengthens the compliance supervision mechanism conducts supervision and Supervision assessment of employees and management and ensures that all systems are effectively

05 & implemented. In response to the problems identified during the supervision process a closed-loop Assessment management system for rectification is established to ensure timely correction and continuous improvement of the problems.

HLA Group

Risk Management

Flow Chart

0503滚滚长江东逝水

The company continues to organize training for all staff covering corporate culture professional

Review and Risk Response Integrity ethics integrity requirements etc. to enhance compliance awareness and sense of responsibility Promotion among employees and to implement the concept of integrity in all business departments and

Inspection processes making it deeply rooted in every aspect of the company's operation.

04 04 03 The company has established a diversified anti-corruption reporting system and collects informa-

Anti-corruption tion through various channels such as phone email and reporting boxes. The company

Risk Monitoring Histleblowing implements a confidentiality policy for whistleblowing information to safeguard the rights and interests of whistleblowers. In response to the reports the company will promptly verify and handle

them establish an effective anti-fraud management system and maintain the operating environ-

ment of the enterprise.HLA Group Risk Management Process

25 26HLA GROUP 2024 SOCIAL RESPONSIBILITY REPORT Preface Sustainable Development Solid Governance Green Manufacturing National Quality People-Oriented Appendix

Management Building the Foundation Forming a Low-carbon Creating a Sustainable Building a Better Society

for Development Future Consumption Ecosystem

02

Green Manufacturing

Forming a Low-carbon Future

Main Contents CLimate Change 29 Responding to the SDGs：

Resource Consumption 30

Circular Economy 31-32

Enviornmental Compliance Management 32

27 28HLA GROUP 2024 SOCIAL RESPONSIBILITY REPORT Preface Sustainable Development Solid Governance Green Manufacturing National Quality People-Oriented Appendix

Management Building the Foundation Forming a Low-carbon Creating a Sustainable Building a Better Society

for Development Future Consumption Ecosystem

2.12.2

Responding to Climate Change Resource

Consumption

The company strictly complies with the requirements of relevant laws and

regulations such as the Energy Conservation Law of the People's Republic of China

and the Water Law of the People's Republic of China and continuously optimizes

energy utilization efficiency. At present the company has passed the ISO 50001

energy management system certification.The company actively explores the risks and opportunities brought by climate change and implements the

carbon peaking and carbon neutrality strategy under the guidance of the national "dual carbon" goals.During the reporting period the company strictly adhered to environmental protection regulations

adhered to the green and low-carbon concept established an environmental management system and Energy The company conducts continuous monitoring and statistics of energy and resource consumption in major industrial parks.passed the ISO 14001:2015 environmental management system certification. To improve the efficiency of resource utilization the company has been continuously upgrading its production facilities for Consumption energy conservation. In 2024 the company replaced some of its motors to further improve the efficiency of its electrical

equipment. And install steam waste heat recovery devices (steam economizers) in the factory to reduce steam waste.Green Office The company implements the concept of green development in its daily operations attaches great importance to the cultivation of employees' environmental awareness and takes a series of green office measures to practice green and

Practices low-carbon office methods continuously contributing to green and low-carbon development and transformation.To promote the green and low-carbon transformation of the enterprise the company has systematically advanced the construction of a carbon

neutrality management system around core production and operation scenarios integrating the concept of low-carbon development into the

entire process of production and operation. The company has commissioned a professional third-party organization to conduct a detailed

inventory and assessment of its greenhouse gas emissions and has obtained a carbon neutrality certification clarified the baseline of its carbon

emissions and facilitating the formulation of scientific emission reduction measures. Through comprehensive carbon screening and manage- Paperless Office

ment system certification HLA Group has established a clear path for its carbon reduction targets actively responding to the United Nations Encourage the use of emails cloud

Sustainable Development Goal (SDG13) 's call to action to address climate change. storage and other digital tools to

replace paper documents and

promote double-sided printing to

reduce paper consumption.Encourage Low-Carbon Promote High-Efficiency

Commuting Green Office Lighting

Encourage employees to take public Practices Optimize lighting systems and control

transportation to work and prioritize indoor temperatures to reduce office

the use of new energy vehicles for electricity usage

business trips and official receptions

In terms of mitigating climate change the company is vigorously promoting clean energy substitution and Install Water-Saving

energy efficiency improvement. The logistics park has actively adopted clean energy such as solar power and Equipment

built distributed photovoltaic power generation facilities effectively reducing indirect carbon emissions

resulting from power purchase. At the same time the company actively purchases and uses electricity from Install water-saving devices and

renewable energy sources and has obtained green power certification further optimized the energy structure display reminders in restrooms to

and reducing carbon intensity. strengthen employees' awareness of

water conservation; promote waste

sorting facilitate recycling of office

supplies and paper and realize the

recycling of office waste materials.

29 30HLA GROUP 2024 SOCIAL RESPONSIBILITY REPORT Preface Sustainable Development Solid Governance Green Manufacturing National Quality People-Oriented Appendix

Management Building the Foundation Forming a Low-carbon Creating a Sustainable Building a Better Society

for Development Future Consumption Ecosystem

2.3

Circular Economy

Meanwhile the company is working with its supply chain partners to advance circular economy practices

strengthen green procurement requirements for upstream suppliers and build a closed-loop supply

chain. In 2024 the company obtained the green supply chain management system certification for the

HLA Group has rooted the concept of "Green Low-carbon and Circular" in its brand DNA practicing apparel industry. By building a green supply chain ecosystem the company extends the concept of circular

resource recycling and value extension from the source of the supply chain to the end of the product life and low-carbon throughout the entire value chain collaborates with partners to achieve efficient recycling

cycle covering all links such as raw material procurement production process packaging design and of resources and responds to the United Nations Sustainable Development Goals (SDG12&17) "Responsi-

logistics transportation promoting green transformation in the industrial chain and creating fashionable ble Consumption and Production" and "Partnerships for Achieving Goals" with concrete actions.products in harmony with nature.At the raw material end the company actively uses environmentally friendly raw materials to endow its

products with green attributes. On the one hand the company has introduced a large amount of natural

renewable fibers such as mulberry silk wool and other high-quality raw materials; On the other hand new

environmentally friendly synthetic materials are constantly being developed including bio-based Sorona

fibers biodegradable Tencel (Lyocell fibers) and recycled polyester. These selected materials are natural

comfortable breathable and have excellent environmental performance providing consumers with 2 . 4

healthy safe and sustainable fashion options while ensuring clothing quality and reducing environmental The company has earnestly implemented environmental laws and regulations such as the Environmental

impact. Environmental Protection Law of the People's Republic of China the Law of the People's Republic of China on the Prevention and Control of Water Pollution the Law of the People's Republic of China on the Prevention and Control of Air

Compliance Pollution the Law of the People's Republic of China on the Prevention and Control of Solid Waste Pollution and The company also pays attention to the implementation of the concept of recycling in the product design the Law of the People's Republic of China on the Prevention and Control of Environmental Noise Pollution in all

and production process. HLA Group strives to enhance the durability and recyclability of its products and aspects of clothing production and sales.minimize the environmental impact caused by production waste and product disposal. During the Management In the production process of HLA F2C customization business it strictly complies with relevant national laws and

reporting period the company completed several green certifications including China Environmental Label regulations on solid waste air pollution prevention and control etc. It strengthens the daily management and

Product Certification demonstrating the environmental attributes of its products in terms of raw material supervision of relevant emission links around environmental impact factors such as wastewater waste gas

safety energy conservation in production and waste recycling. noise and cooking fume earnestly fulfills environmental compliance responsibilities and continuously

promotes production and operation in accordance with laws and regulations.Through the implementation of these measures HLA Group has significantly reduced the environmental impact

of its production and operation set a benchmark for green manufacturing in the industry and been awarded the

"National Green Factory" certification which also aligns with the requirements of the United Nations Sustain-

able Development Goals (SDG 9 & 12) for sustainable industrialization and responsible production. We strive to

Fruit dyeing technology involves extracting juice from natural plant fruits to dye fabrics for use in the make fashion production cleaner more efficient and more sustainable and continue to empower ecological

dyeing process. There is no wastewater in the dyeing process and no chemical additives are added in

Fruit dyeing and environmental protection and the company's high-quality development.the production process. The concept of low-carbon and green development is implemented in all the

technology fields involved in the company including industry consumption and environmental protection to

form a virtuous ecological cycle.Plant dyeing Plant dyeing technology is non-toxic and biodegradable achieving environmental friendliness and upgrading fading dyeing technology reducing the dye bath ratio during the dyeing process and further

technology reducing water consumption.INDIGOJUICE

Water-saving The company has adopted INDIGOJUICE water-saving dyeing technology significantly reducing

INDIGOJUICE

dyeing electricity and water consumption during the washing process. During the reporting period the company was not a key pollutant discharge was not included in the "Wuxi

technology City 2024 Enterprise Environmental Information Disclosure List" released by the Wuxi Municipal Ecological

Environment Bureau and did not receive any administrative penalties due to environmental violations or

irregularities.

31 32HLA GROUP 2024 SOCIAL RESPONSIBILITY REPORT Preface Sustainable Development Solid Governance Green Manufacturing National Quality People-Oriented Appendix

Management Building the Foundation Forming a Low-carbon Creating a Sustainable Building a Better Society

for Development Future Consumption Ecosystem

03

National Quality

Creating a Sustainable Consumption Ecosystem

Main Contents Product Quality Control 35 Responding to the SDGs：

Customer Rights Protection 35-38

Innovation-Driven Development & Intellectual Property Safeguards 39-43

Responsible Supply Chain Management 44

33 34HLA GROUP 2024 SOCIAL RESPONSIBILITY REPORT Preface Sustainable Development Solid Governance Green Manufacturing National Quality People-Oriented Appendix

Management Building the Foundation Forming a Low-carbon Creating a Sustainable Building a Better Society

for Development Future Consumption Ecosystem

3.1

Product Quality Control Product Quality Complaint Handling Process

Customer Guide customer to Store manager determines and handles based on

complaint or inquiry resolve at nearest store actual condition of the merchandise

The company strictly complies with the Product Quality Law of the People's Republic of

China enforcing enterprise-specific control standards through our professional Quality Proceed with further actions or close complaint Follow up on Follow up on store

Supervision Center that ensures end-to-end quality consistency from R&D to delivery. based on satisfaction customer satisfaction handling process

Holding dual certification under GB/T19001-2016 and ISO 9001:2015 Quality Management

Systems we have been honored by the China Association for Quality Inspection with the

"National Apparel Industry Quality Leadership Brand" "National Integrity Benchmark for

Product & Service Quality" "National Consumer Quality Assurance Product" and other Store Service Complaint Handling Process

prestigious accolades in recognition of our quality commitment.Complaint Acceptance Record and Verify Implementation Follow up and Closed-loopof the Plan Feedback Management

3 . 2 Record complaint Respond to Proceed with

Customer details & customer and Follow up on further actions

complaint requirements implement customer or close

contact store solution satisfaction complaint based Customer Rights Protection for verification on satisfaction

Customer As a cornerstone of our corporate social responsibility customer rights protection is ensured through comprehensive

Service service protocols and performance evaluation mechanisms. Our stores implement a 30-Day Hassle-Free Return Policy: merchandise remains eligible for exchange or return within 30 days of purchase provided there is no evidence of

Governance laundering ironing staining alterations or other impacts on resale value. Furthermore we provide complimentary Honors & Accreditations

garment finishing services including cuffed hem service to prevent fabric fraying while utilizing satisfaction rating

devices to continuously track and improve service quality across all customer touchpoints. In 2024 the company has obtained multiple authoritative certifications in the field of customer service.Free Garment Care New Store Looking Get More Heartwarming Service Stories CTEAS After-Sales Service System Excellence Customer Satisfaction Certification Certificate National Commodity After-Sales ServiceCertification Certificate Compliance Certification Certificate Excellent Supplier of China Mobile's Level 1 Data Collection in 2024 (Grade A)

35 36HLA GROUP 2024 SOCIAL RESPONSIBILITY REPORT Preface Sustainable Development Solid Governance Green Manufacturing National Quality People-Oriented Appendix

Management Building the Foundation Forming a Low-carbon Creating a Sustainable Building a Better Society

for Development Future Consumption Ecosystem

3.2

Customer Rights Protection

Marketing & Brand The company has established and continuously improved its brand marketing communication management system Information Security The company strictly adheres to the requirements of the Cybersecurity Law of the People's Republic of China Data

Stewardship strengthened the review mechanism for promotional content advocated green consumption concepts and enhanced Security Law of the People's Republic of China and other relevant laws and regulations while continuously improving consumer awareness of sustainable products. Concurrently the company regularly collects consumer feedback on brand and Privacy its information security management system. By clearly defining roles and responsibilities as well as operational

perception to foster a trustworthy transparent and responsible brand image. Protection protocols across all stages of customer information management the company constructs a robust data security

defense framework through institutional technical and personnel dimensions thereby effectively safeguarding

operational data and users' personal information.Responsible Marketing

The company strictly complies with the Advertising Law of the People's Republic of China Anti-Unfair Competition Law of the People's Republic of China

E-Commerce Law of the People's Republic of China and other relevant laws and regulations. In all aspects including apparel labeling product promotion and

marketing campaigns the company adheres to principles of integrity eliminating exaggerated ambiguous or false information to effectively safeguard

consumers' legitimate rights and interests. Standardize operational standards for the entire lifecycle of network information handling including

collection transmission storage and usage.Clearly inform customers through the Privacy Policy about the purposes scope and rights related to

Institutional Standards and personal information collection ensuring legal and compliant data acquisition.Process Optimization

Deploy data encryption and data masking techniques to implement tiered and classified protection

for core customer information.The 11th Golden Wheat Awards The 11th Golden Wheat Awards Continuously improve protection systems such as firewalls and intrusion detection to strengthen

"Best Influential Brand Award" "Bronze Award in Cross-Category Marketing" Technical Protection technical safeguards.Capability Enhancement

Organize specialized information security training programs emphasizing privacy and confidentiality

awareness and operational protocols.Strictly prohibit unauthorized disclosure of customer information.Brand Evaluation and Certification Certificate (Five-Star Class) The 11th Golden Wheat Awards The 11th Golden Wheat Awards Employee Awareness and"Performance Marketing Bronze Award" "Bronze Case Award in Apparel Footwear & Accessories" Competency Development

When information security incidents occur designated personnel must follow established procedures

HLA brand has been consecutively selected for three years into CMG's to complete incident reporting."Brand Power Initiative · Leading Brand" program marking the The information security department conducts investigations assessments handling reporting and

first brand in China's apparel industry to Emergency Response post-incident reviews based on the incident severity level.receive this national-level honor. Mechanism Improvement

37 38HLA GROUP 2024 SOCIAL RESPONSIBILITY REPORT Preface Sustainable Development Solid Governance Green Manufacturing National Quality People-Oriented Appendix

Management Building the Foundation Forming a Low-carbon Creating a Sustainable Building a Better Society

for Development Future Consumption Ecosystem

3.3

Innovation-Driven Development & Intellectual

Property Safeguards

Technological The company synergizes technological advancement with fashion innovation developing novel fiber

HLA Group consistently prioritizes technological innovation as its core driver establishing and optimizing a scientific R&D system focused on fabric Innovation Achievements materials to create cutting-edge products infused with sophisticated technological features.selection apparel design innovation and process technology advancement. We deeply integrate digital technologies with intelligent manufacturing

systems to comprehensively propel the brand's transition toward intelligent and innovative development. This includes refining innovation management

frameworks enhancing industry-academia-research collaboration and fully unleashing the R&D team's innovative capabilities.、

Across all subsidiary brands R&D and design efforts remain closely aligned with brand positioning and consumer needs. Within the product development

process of the flagship brand HLA the company emphasizes critical stages such as development proposal review and final model selection while outsourc-

ing non-core tasks like sampling to supplier design teams. Concurrently other retail brands leverage their independent R&D strengths to continuously

launch high-quality product lines that blend functionality with fashion delivering superior dressing experiences for customers. Selected for the 2024 TOP

TEN INNOVATIVE TEXTILE PRODUCTS

Technology R&D and

Industrial Innovation

R&D Platform Development

YUNFU LAB located in Jiangyin HLA Garment

Industrial City covers 5000 square meters with

2800 square meters dedicated to testing Selected for the 2024 TOP TEN

laboratories. Utilizing advanced technologies INNOVATIVE TEXTILE PRODUCTS

such as big data and artificial intelligence it

conducts trend analysis consumer insight

mining and intelligent design development to

drive product innovation and rapid iteration.The company has deepened collaboration with leading research

institutions and universities to conduct forward-looking apparel

studies committed to providing effective intelligent innovative

and macro solutions for the future of the industry. Focusing on T-shirts are manufactured using 100%

two key areas—new fabric development and apparel cultural naturally biodegradable and

development—the company vigorously promotes innovation and eco-friendly raw materials

industrial upgrading in the apparel sector and has jointly

established R&D centers and scientific research platforms with

numerous research institutions including Tsinghua University，Donghua University and China Textile Academy.

39 40HLA GROUP 2024 SOCIAL RESPONSIBILITY REPORT Preface Sustainable Development Solid Governance Green Manufacturing National Quality People-Oriented Appendix

Management Building the Foundation Forming a Low-carbon Creating a Sustainable Building a Better Society

for Development Future Consumption Ecosystem

3.3

Innovation driven and intellectual property protection

Cultural Heritage and

Innovative Application

Category Details

Research Institution In May 2024 the Tsinghua University-HLA Technology Research Center for Traditional Chinese

Development Attire and Color Studies was established through collaboration with Tsinghua University dedicated to

advancing academic research on apparel cultural heritage and its integration with contemporary design

innovation.Published The Most Beautiful Chinese Attire Series: Five-Colored Magnificence of Mamianqun (China's

Academic first academic monograph on Mamianqun)

Research Completed systematic research and chromatic value codification of 260 traditional Chinese color

specimens

· March 2024: Hosted the "Huacai Yequnshang" Exhibition Featuring selected visuals and innovative

designs from The Most Beautiful Chinese Attire Series: Five-Colored Magnificence of Mamianqun.Exhibition and · May-August 2024: Organized the Thematic Exhibition"Garments-Give-Birth-to-All-Things: Tradition

Display Reconstructed ? Five-Colored Magnificence of Mamianqun "

· September 2024: Curated and hosted the Salon"Dunyao Guanghua Shengsheng Buxi: Dunhuang Art

Design Achievements"

· May 2024: Hosted the Academic Symposium"Garments Give Birth to All Things: Tradition Reconstruct-

Academic ed - Five-Colored Magnificence of Mamianqun"

Forum · September 2024: Organized the Forum"Huaxia Yishang · Tang Dynasty Attire: Chinese Apparel Theory

and Innovative Design Forum"

· Completed restoration of 38 sets of Hanfu structural designs from the Han Tang Song and Ming

Product

Development and dynasties including precise reconstruction of historical garment silhouettes fabrics and decorative

Application patterns.· Developed the "Lanxiu Yunshang" Mamianqun brand and achieved commercial application of pattern

Cross-sector Designed the workwear collection for China Mobile's 2025 Barcelona Expo integrating the Yunjian (cloud

Collaboration collar) element with Ming Dynasty Hanfu structural design principles.

41 42HLA GROUP 2024 SOCIAL RESPONSIBILITY REPORT Preface Sustainable Development Solid Governance Green Manufacturing National Quality People-Oriented Appendix

Management Building the Foundation Forming a Low-carbon Creating a Sustainable Building a Better Society

for Development Future Consumption Ecosystem

3.33.4

Innovation driven and intellectual property protection Responsible Supply Chain Management

The company has deeply integrated store sales logistics warehousing and supplier production data through the SAP information system. Combined with

Intellectual Property Protection RFID technology it has established end-to-end data connectivity to build an intelligent traceability system covering the entire lifecycle of garments. This

system digitizes core processes including warehousing storage distribution picking and shipment while real-time monitoring production data and

warehouse environmental parameters. These measures significantly enhance supply chain visibility and operational efficiency and provide data foundations

and technical support for environmental/social responsibility audits and sustainable procurement management.Supplier Qualification Management

The company consistently regards technological innovation and intellectual property The company has established a comprehensive qualification evaluation system for supplier onboarding clearly requiring suppliers to meet basic standards

protection as core strategies for corporate development strictly adhering to the in factory scale staffing production environment and management processes and to possess certain technical R&D capabilities. Simultaneously the

Trademark Law of the People's Republic of China Copyright Law of the People's company mandates that suppliers safeguard employees' legal rights and interests by standardizing wage payments contract execution and social insurance

Republic of China Patent Law of the People's Republic of China and other relevant contributions and establish robust personnel management systems in terms of social responsibility; formulate business ethics and anti-corruption policies

laws and regulations. We have established an integrated system encompassing the strengthen internal control and risk management systems ensure financial stability and supply chain transparency in terms of governance compliance; and

creation utilization protection and management of intellectual property. During the optimize resource utilization improve energy efficiency enhance water recycling and wastewater treatment monitor carbon emissions implement emission

reporting period the company continuously optimized its IP management reduction measures and advance waste classification and recycling systems in terms of environmental management.mechanisms to ensure both the protection of its own intellectual property rights and

full respect for third-party IP rights. In 2024 the company successfully obtained GB/T Supplier Evaluation

29490-2013 certification for its intellectual property management system further

solidifying the standardization and professionalization of IP governance.The company implements a scientific evaluation system with dynamic management and a four-tier grading mechanism to optimize supply chain operations.The process includes data collection evaluation analysis result review and notification. Evaluation metrics also incorporate ESG criteria such as employee

rights compliance occupational health & safety and environmental performance.Supplier Collaboration & Empowerment

The company strengthens supplier collaboration through an“ Online + Offline” coordination mechanism. Online it achieves end-to-end process integration

via office software and email systems; Offline it conducts regular on-site visits and exchanges. Annually the company jointly organizes hundreds of activities

By the end of 2024 the company had achieved significant results in the field of intellectual property with the with suppliers including training sessions and presents awards to outstanding suppliers. The training content primarily focuses on green production

following cumulative patent holdings: resource efficiency and compliance management delivered through hybrid online-offline formats tailored to diverse supplier needs thereby enhancing their

operational efficiency and sustainable development capabilities.Supplier Management Process

454 63 112 279 KPI

Assessment

Total Valid Patents Invention Patents Utility Model Design Patents

Patents

Intention Qualification Supplier Collaboration ContinuedSelection&

Communication Review Empowerment Cooperation /Admission Management Phase-Out or Exit

Classification

43 44HLA GROUP 2024 SOCIAL RESPONSIBILITY REPORT Preface Sustainable Development Solid Governance Green Manufacturing National Quality People-Oriented Appendix

Management Building the Foundation Forming a Low-carbon Creating a Sustainable Building a Better Society

for Development Future Consumption Ecosystem

04

People-Oriented

Building a Better Society

Main Contents Labor Rights 47-50 Responding to the SDGs：

Talent Development 51-53

Health and Safety 54

Social Contribution 55-56

45 46HLA GROUP 2024 SOCIAL RESPONSIBILITY REPORT Preface Sustainable Development Solid Governance Green Manufacturing National Quality People-Oriented Appendix

Management Building the Foundation Forming a Low-carbon Creating a Sustainable Building a Better Society

for Development Future Consumption Ecosystem

4.1

Gender Distribution of All Educational Background Distribution of

Labor Employees are the most asset of an enterprise and the core driving force for high-quality development of the company. In 2024 the company will always adhere to the "people-oriented" philosophy continuously expand the business Employees All Employees

Rights territory continuously optimize the human resource structure and actively build a harmonious stable equal

inclusive safe and healthy working environment. Through standardized employment management systems sound

Female Male Technical Secondarycompensation and benefits systems diverse communication and participation mechanisms and caring employee Bachelor’sSchool and Below Junior College Degree and Above

measures the company has continuously strengthened the foundation of labor rights protection and built a sustain-

able employer brand with humanistic care and sense of responsibility. 4814

3368

The Overall In 2024 under the business philosophy of "stabilizing growth and promoting development" HLA Group further

18%

optimized and expanded its workforce bringing the total number to 26074. The company has focused on multi-di- 13%

Situation of mensional synergy and specialized division of labor in its human resources layout forming a complete chain covering

the Employees production and manufacturing marketing and sales technology research and development financial management

administrative support and other cross-functional departments. The diverse distribution of positions not only meets 4518

the daily operational needs of each business segment of the company but also provides a solid human resource 17%

foundation for the long-term development of the enterprise.

21260

2607482%1818870%

滚滚长江东逝水

Total Number of Employees

Educational Background Distribution of R&D Personnel

1018 High School Junior Bachelor's Master's

and Below College Degree Degree

Total Number of R&D Personnel 27

3%

391444

38%44%

156

15%

47 48HLA GROUP 2024 SOCIAL RESPONSIBILITY REPORT Preface Sustainable Development Solid Governance Green Manufacturing National Quality People-Oriented Appendix

Management Building the Foundation Forming a Low-carbon Creating a Sustainable Building a Better Society

for Development Future Consumption Ecosystem

4.1

Labor Rights Diversity In terms of health and living benefits the company has invested a lot of resources to create a healthy and friendly working environment. The company also provides physical and sports facilities such as Inclusion and gyms and basketball courts for its employees aiming to keep them physically and mentally balanced in

Employee Care their spare time from work. The company also focuses on enriching employees' cultural life in their

spare time. During festivals it organizes group activities or team-building projects to unite the team and

Employment Compliance HLA Group has always strictly adhered to relevant regulations such as the Labor Law of the People's create a positive cultural atmosphere.and Employee Rights Republic of China and the Labor Contract Law of the People's Republic of China and has established a systematic employment compliance mechanism and internal management system. The company

Protection implements a systematic review process during the onboarding stage of new employees resolutely

eliminating child labor forced labor and all forms of discrimination or illegal acts; Supervise the hiring Employee Recognition Mechanism: Annual Double 100 Selection

process to ensure that all hiring stages are open fair competitive and merit based.

100 % In the process of building a positive and enterprising

The company's labor contract signing rate corporate culture HLA Group has continuously strength-

ened its internal incentive mechanism. The company

holds the "Double 100 of the Year" awards ceremony

Compensation benefits and performance assessment are the main means to safeguard employees' every year to honor stores and outstanding employees

rights and interests and to boost their work enthusiasm. HLA Group maintains a strong salary competi- with remarkable annual performance. Since the establish-

tiveness in the industry fully pays the "five social insurances and one housing fund" in accordance with ment of this mechanism it has become one of the compa-

national regulations and provides multiple incentives such as basic salary performance bonus ny's most representative platforms for employee recogni-

year-end bonus subsidy and employee stock ownership plan based on job performance. The company tion and cultural inheritance. Through this initiative the

also organizes regular performance communication interviews to help employees understand their company has effectively stimulated the enthusiasm and

goals and directions for improvement. By combining quantitative assessment with qualitative innovation drive of its employees demonstrating the

evaluation it ensures fair and reasonable compensation and promotion for employees. company's emphasis on employee growth.To further improve compliance management the company has connected the front-line attendance

system to the HR sharing platform and implemented a facial recognition and electronic attendance HLA Group holds the "2023 Double 100 Awards Ceremony" on March 30 2024

management model to keep track of employees' attendance in real time. With the continuous improve-

ment of digital supervision of labor relations the legitimate rights and interests of employees have also

been more effectively protected.Employee The company has established various forms of communication with employees such as online and offline feedback

Communication channels suggestion boxes and internal systems allowing employees to express their opinions and suggestions at

Diversity While safeguarding labor rights HLA Group also attaches great importance to the well-being of each and Participatio

any time.employee and is committed to building a warm and cohesive workplace ecosystem. The company has

Inclusion and carried out a wide range of targeted public welfare and cultural activities and established a sound For reasonable suggestions or complaints raised by employees the relevant departments of the company will

Employee Care internal care mechanism to ensure that every group can receive the respect and development opportu-

nities they deserve within the enterprise. immediately conduct research and discussions. Every year the company systematically collects and compiles

suggestions or feedback from employees regarding the company's management system benefits career develop-

In terms of the rights and interests of female employees in addition to legally safeguarding the ment etc. and formulates corresponding actions accordingly.rights and interests of women in areas such as fertility protection and special holidays the company

also organizes a variety of activities through trade unions and women's federations such as flower

arrangement art women's health lectures traditional festival cultural experiences and other theme In addition the company explores various forms of employee participation in corporate governance. For example a

projects to help female employees expand their interests and self-worth in their spare time. The certain proportion of employee representatives are allowed to attend supervisory board meetings or senior manage-

company's efforts in nurturing female talents have been recognized by society. In 2024 several of the ment meetings to offer advice and constructive suggestions. Through such democratic communication mechanisms

company's female employees were awarded the title of "Most Beautiful Female Craftsman" at the

corporate decision-making can better consider employees' concerns and enhance their sense of belonging and

municipal level.initiative.In terms of employee care the company has provided financial assistance to many employees whose

families have fallen into hardship or have fallen seriously ill and has offered targeted student aid

subsidies to families with school-aged children and heavy educational burdens. In addition the union

actively coordinated with local government departments to solve the school enrollment problem for

the children of migrant workers successfully helping more than 70 employees' children to attend

49 50HLA GROUP 2024 SOCIAL RESPONSIBILITY REPORT Preface Sustainable Development Solid Governance Green Manufacturing National Quality People-Oriented Appendix

Management Building the Foundation Forming a Low-carbon Creating a Sustainable Building a Better Society

for Development Future Consumption Ecosystem

4.2

Talent Talent always plays a core role in driving innovation and maintaining competitive vitality throughout the compa- Training System & To systematically and orderly promote multi-level and multi-field talent training the company has built the HLA ny's continuous growth process. The company understands only through a systematic and well-developed talent Base Construction Intelligent Manufacturing Training Base to high standards. The base is equipped with multimedia classrooms

Development development system can it maintain the internal driving force for upward development in a market environment practical workshops and advanced teaching facilities which can accommodate 200 trainees for both theoretical full of changes and challenges. In 2024 the company will further upgrade its training model and build a learning and practical training meeting the company's training needs in multiple links such as cutting sewing and

multi-channel and multi-level development path to help employees and the company move forward hand in ironing. In 2024 the HLA Intelligent Manufacturing Training Base was awarded the title of "Digital Talent Training

hand and create the future together. Base of Wuxi City" fully demonstrating the company's exemplary leadership and industry influence in intelligent

manufacturing and talent cultivation.Talent Development To achieve the strategic transformation towards intelligent manufacturing and digital operation the company has

Strategy proposed a talent development strategy of "Empowering all staff cultivating at different levels and contin-

uous innovation" in its annual human resources plan. By optimizing the training system in a targeted manner

the company hopes to accelerate the development of mid-to-high-end professionals with more forward-looking

thinking and compound skills based on consolidating the existing business talent reserve and thereby build a

sustainable talent ecosystem that is "people-oriented performance-oriented and innovation-centered".The company has defined three major talent development goals:

Systematically enhance the efficiency and innovation

01 capabilities of employees through professional skillstraining practical exercises and project incubationaround core business segments such as production

sales design and research and development;In terms of the training model the company adheres to a dual-track approach of "Theory + Practice” and

conducts training through forms such as centralized lectures and online learning platforms. The base has multiple

equipment operation areas for practical skills assessment and emergency drills and the effectiveness of the

training is evaluated through multiple dimensions such as examinations and expert reviews.The company actively promotes school-enterprise cooperation and industry-education integration and builds a

For middle and senior managers strengthen the renewal

02 of management concepts and the improvement of four-in-one talent cultivation system of "Production Learning Research and Application". At present the leadership and consolidate the management echelon company not only builds industry-research platforms with higher education institutions and research institutes

within the enterprise; such as Tsinghua University Donghua University and China Textile Academy but also conducts academic

exchanges and topic discussions with universities such as Soochow University School of Cybersecurity and

School of Intelligent Manufacturing of Nanjing University of Science and Technology continuously expanding the

depth and breadth of school-enterprise cooperation.Every year the group offers "School-enterprise Cooperation Training Classes" to universities such as Nantong

Carry out specialized talent programs with cutting-edge University Suzhou Institute of Technology Jiangyin Polytechnic and Jiangsu Engineering Polytechnic. Relying on

03 and strategic significance build a sustainable pool of reserve enterprise scenarios and mentor resources the company has established a diverse practical teaching system to talents and provide continuous talent support for the futurebusiness diversification and upgrading transformation help students bridge the "last mile" from the classroom to their jobs.

of the enterprise. In addition the company has continuously advanced innovative cooperation projects such as the "E-commerce

Live Streaming Project" and the "HLA Suxin Incubation Center Project" promoting the opening of

enterprise scenarios and industrial resources to universities providing the industry with more compound talents

that meet the needs of the front line and injecting continuous vitality into its own talent team building.

51 52HLA GROUP 2024 SOCIAL RESPONSIBILITY REPORT Preface Sustainable Development Solid Governance Green Manufacturing National Quality People-Oriented Appendix

Management Building the Foundation Forming a Low-carbon Creating a Sustainable Building a Better Society

for Development Future Consumption Ecosystem

4.24.3

Talent Health & The company always prioritizes the lives and health of its employees. Through a systematic and professional safety management system it continuously improves safety regulations and processes and strives to create a safe

Development Safety healthy and comfortable working environment. In 2024 the company's key measures in occupational health and safety include systematic risk identification and prevention comprehensive safety training programs multi-level

emergency drills and accident management and accountability mechanisms to ensure that employees are fully

Training Categories & The company's talent development system covers the entire chain from new employees to senior management. It protected in their daily production and operation activities and to lay a solid foundation for the company's sustain-

Course Settings offers a variety of training categories and courses around different levels and professional directions to ensure that able development.employees receive targeted guidance and improvement at all stages of their careers.Occupational Health The company has established and continuously improved the

& Safety Management occupational health and safety management system and earnestly Onboarding training Setting up "onboarding essentials" for new members covering corporate culture rules and regulations implemented the safety production policy of "safety first preven-

for new employees business etiquette and basic workplace skills. Through classroom lectures scenario simulations group System tion foremost and comprehensive governance". The company

discussions and mentorship new employees are helped to quickly integrate into the company and develop has compiled the "Occupational Health and Safety Manage-

professional ethics and a sense of belonging. ment Manual" and set corresponding annual safety goals and

indicators. During the reporting period the company obtained the

ISO45001 occupational health and safety management

system certification and established a dedicated safety preven-

tion and control command center.On-the-job skills Offering vocational qualification training special job training (such as mechanical repair electrician

training The company has engaged third-party institutions to assist in risk laboratory technician etc.) and job skills improvement courses for on-the-job employees to enhance their

identification and daily monitoring focusing on common occupa-

professional capabilities. We also offer advanced courses such as AI workshops to enhance employees'

tional hazard factors such as noise and dust and conducting

understanding and application of digital and intelligent technologies.relevant tests on a regular basis. In response to potential risks such

as high temperature humidity flammability and explosiveness the

company has implemented a comprehensive prevention and

control model of "technology transformation + safety protec-

Management Focusing on topics such as "leadership" and "project management" systematically enhance compre- tion + staff training" equipped with necessary protective

training hensive management skills including communication team building and performance management detected and rectified in a timely manner. At the same time increase investment in hardware install central air

through case studies scenario simulations and expert comments to help managers complete role conditioning and exhaust systems in workshops and improve the working environment; All special operation

transitions. personnel are certified safety facilities are inspected and maintained regularly and the equipment integrity rate is

maintained at a high level effectively ensuring operational safety and stable operation.Safety Training Safety training is an important means for the company to implement the safety culture and enhance the safety

Specialized talent Implementing programs such as the "Pheonix Program" "Team Leader Training Camp" and "Profes- & Education literacy of all employees. The company conducts stratified safety training for new employees current employees

development sional Elite Class" for future management and professional backbone and promote the accelerated transferred/returning employees and relevant parties and combines regular safety-themed lectures analysis of

programs growth of young talents and the construction of the internal talent echelon of the organization through typical accident cases fire safety knowledge lectures and on-site drills to instill the awareness of "safety first" in the

concentrated training specialized research and study and internship rotation. minds of employees.Emergency Plans In production and business activities the ability to

& Drills respond to accidents is directly related to the safety of

life and property of the enterprise and its employ-

Annual Training Overview Training Duration Training Sessions Number of Employees Trained ees.During the reporting period the company

developed specific contingency plans for various

potential risks such as fire safety mechanical injury

and accidents involvingspecial equipment (such as

6500 0 0 +hrs 666 Sessions 170 0 0 0 +People elevators andpressure vessels) and conducted

rehearsaltraining.

53 54HLA GROUP 2024 SOCIAL RESPONSIBILITY REPORT Preface Sustainable Development Solid Governance Green Manufacturing National Quality People-Oriented Appendix

Management Building the Foundation Forming a Low-carbon Creating a Sustainable Building a Better Society

for Development Future Consumption Ecosystem

4.4

Social While pursuing high-quality development the company has always been actively engaged in national strategies and social welfare undertakings with a high sense of social responsibility. The company is

Contribution constantly expanding its social influence in multiple dimensions such as sports education and people's “‘More Warm’ 10 Years Anniversary Move forward”livelihood exerting the power of a national brand and is committed to contributing to the public value of

society. The "More Warm" charity program initiated by HLA Group in 2014 is celebrating its tenth anniver-

sary. Over the past decade HLA's "More Warm"program has reaching 24 provinces municipalities

In the future the company will continue to expand the boundaries of social responsibility leverage its brand strength deepen cooperation with local govern- and autonomous regionsacross the country delivering warmth and care to teachers and students

ments public welfare organizations and cultural institutions and continue to focus on key areas such as public welfare activities healthy living rural culture inremote areas including hundreds of thousands of custom-made down jackets.In 2024 the

and ecological protection to promote the organic integration of corporate social value and commercial value and contribute more to building a more public welfare team of HLA Group revisited Hongtupo PrimarySchool in Yuzhong County

inclusive and sustainable social ecosystem. Lanzhou City Gansu Province donating downjackets and school supplies to the students. With

several "special volunteers"who had received donations a decade ago organized a charity class

meeting and cultural activities centered around the theme "The Future Me."

“Supporting National Fitness spreading brand warmth”

In 2024 the company actively supported the development of national fitness and sports demonstrating corporate responsibility and brand

warmth by participating in and sponsoring several high-profile events.The company participated in several city marathons throughout the year:“ 2024 HLA Wuxi Marathon”、 "HLA Jiangyin Fashion Xinqiao Half

Marathon" and "HLA Jiangyin Half Marathon" promoting the construction of the city's cultural brand and advocating a healthy lifestyle through

the organization of high-standard events.The "More Warm" 10th Anniversary

“Join Hands with Aerospace”

On January 11 2024 the "Gravity 1 (Yao 1)

HLA" carrier rocket sponsored by HLA

The company is the sole sponsor of Jiangyin's "Cun BA" rural basketball tournament injecting Group successfully launched three remote

brand power into grassroots sports and igniting residents' enthusiasm for sports and collective sensing satellites into their designated

honor. The event covers multiple village and town units and attracts many citizens to orbits in the sea area near Haiyang Shan-

participate truly achieving the goal of "promoting unity and culture through sports" and dong Province.contributing to the construction of rural spiritual civilization.The 2024 HLA Jiangyin "Cun BA"

The launch of the Gravity-1 Rocket， Sponsored by HLA Group

55 56HLA GROUP 2024 SOCIAL RESPONSIBILITY REPORT Preface Sustainable Development Solid Governance Green Manufacturing National Quality People-Oriented Appendix

Management Building the Foundation Forming a Low-carbon Creating a Sustainable Building a Better Society

for Development Future Consumption Ecosystem

Appendix: Report Indicators Index Reader Feedback

This index table is compiled in accordance with the GRI standard the "Chinese Enterprise Sustainability Dear reader：

Reporting Guidelines (CASS-ESG 6.0) - Textile and Apparel Industry". Hello! Thank you very much for taking the time to read this report. In order to provide you and other

stakeholders with more valuable information on corporate social responsibility please help us complete

Report Sections and Contents GRI Metrics CASS-ESG 6.0 Report Page Numbers the feedback form and provide feedback to us in the following ways to help us further improveour

management of corporate social responsibility.Sustainable Development Management Email: 600398@hla.com.cn Address: Huashi Town Jiangyin City Jiangsu Province

Sustainable Governance

Framework and Strategy GRI 2-9 2-12 G1.1.1 G1.1.2 Pages 11 1.Which of the following types of stakeholders do you belong to

Stakeholder Communication and

Materiality Assessment GRI 2-29 G1.2.1 Pages 12~16

Solid Governance · Building the Foundation for Development □Shareholders and Investors □Government and Regulatory Agencies □Employees

Governance Structure and □Customers (Consumers) □Suppliers and Franchisees □Community and the Public □Media

Operation Mechanism GRI 2-9 2-11 G1.1.1 G1.1.3 Pages 21~22

Shareholder Rights Protection and □Others

Investor Relations GRI 2-29 207-1 G2.1.1 Pages 23~24 2.Your overall assessment of the corporate social responsibility report for this year:

Risk Management GRI 2-23 2-25 G2.1.3 Pages 25

Business Ethics GRI 205-1~205-3 G2.2.1~G2.2.3 Pages 26 □Excellent □Good □Average □Poor □Bad

Green Manufacturing · Forming a Low-carbon Future

Responding to Climate Change GRI 305-1~305-3 E1.1~E1.3 Pages 29 3.What do you think of this report:

Resource Consumption GRI 302-1 303-1 E3.1~E3.3 Pages 30

D i s c l o s u r e : □Excellent □Good □Average □Poor □Bad

Circular Economy GRI 301-1 306-1 306-2 E3.3 Pages 31~32 Layout Design: □Excellent □Good □Average □Poor □Bad

Environmental Compliance

Management GRI 306-3 306-4 E2.2~E2.3 Pages 32 R ea d a b i l i t y : □Excellent □Good □Average □Poor □Bad

National Quality · Creating a Sustainable Consumption Ecosystem

Product Quality Control GRI 416-1 417-1 S3.1.1 Pages 35 4.Which topics are of the greatest concern to you (Choose 3)

Customer rights protection

(Information Security and Privacy Protection) GRI 418-1 S3.3.2 Pages 35~38 □Governance Structure and Operation Mechanism □Shareholder Protection and Investor Relations

Innovation-driven and Intellectual

Property Protection GRI 203-1~203-2 S2.1.1 S2.1.2 Pages 39~43 □Risk Management □Business Ethics □Response to Climate Change □Resource Consumption

□Circular Economy □Environmental Compliance Management □Product Quality Control

Responsible Supply Chain GRI 308-1 414-1 S3.2.1 Pages 44 □Customer Protection □Innovation-driven and Intellectual Property Protection□Responsible Supply Chain

People-Oriented · Building a Better Society □Labor Rights □Talent Development □Health and Safety □Social Contribution

Labor Rights GRI 401-1 405-1 406-1 S4.1~S4.2 Pages 47~50 5.Are all the information you are concerned about reflected in this year's CSR report

Talent Development GRI 404-1 404-2 S4.3 Pages 51~53

□Yes □No

Health and Safety GRI 403-1 403-2 S4.4 Pages 54

Social Contribution GRI 413-1 203-1 S1.1.1 Pages 55~56 6.Do you have any opinions or suggestions regarding our corporate social responsibility work

Notes （What other information would you like to see）

·The GRI metrics are derived from the Global Reporting Initiative (GRI) standards.·The CASS-ESG 6.0 indicator is derived from the "Chinese Enterprise Sustainability Reporting Guide

(CASS-ESG 6.0) - Textile and Apparel Industry".

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