About This Report Reporting entity The Reporting entity is "Lu Thai Textile Co. Ltd." which can be referred to as "We" "the Company" "Lu Thai" "Lu Thai Company" "Lu Thai Textile" "The Group" and "Group" unless otherwise specified in the main text.Scope of the report The time span of this Report is mainly from January 1 to December 31 2024. In order to maintain the continuity and comparability of information some content is beyond the aforesaid time span. The information involved is from the internal data of the Company information submitted by subsidiaries and public information. Unless otherwise specified all amounts in this Report are expressed in RMB.References This report has been prepared in accordance with the China Social Compliance 9000 for Textile & Apparel Industry (CSC9000T) the Self-Regulatory Guidance No. 3 for Companies Listed on Shenzhen Stock Exchange—Preparation of Sustainability Report and the Self-Regulatory Guidance No. 17 for Companies Listed on Shenzhen Stock Exchange— Preparation of Sustainability Report(Trial). Additionally it refers to the core plan of the Global Reporting Initiative (GRI) Sustainability Reporting Standards and the United Nations 2030 Agenda for Sustainable Development (A/RES/70/1).Disclaimer This Report is released in both Chinese and English. In case of any discrepancies the Chinese version shall prevail.Forward-looking statements included in this Report refer to the statements of the business activities events or development trends that may happen in the future or will happen soon as predicted or expected by the Company except for the statements of historical facts. The actual results or development trend may significantly differ from these forward-looking statements due to variable factors. The Company is not obliged or responsible to update the forward- looking statements made by the Company in this Report before April 10 2025 unless otherwise required by regulatory authorities.Access This report is available for viewing and download on the following websites: http://www.szse.cn (Shenzhen Stock Exchange); www.lttc.com.cn (Lu Thai Textile); www.cninfo.com.cn (CNINFO).For any inquiries or feedback please contact us via telephone at (+86) 533-5270088 email at sunyi@lttc.com.cn or fax at (+86) 533-5418805. 1Contents Chairman's Statement 04 Products and Services Employee's Rights and Benefits/Building a Building First-Class Products and Services Harmonious Workplace Together About the Company R&D and innovation 32 Respect and equality 72 Group profile 07 Quality control 37 Human rights and labor 76 Our culture 07 Customer services and maintenance 38 Talent management 79 Development history 08 Benefits and care 84 Performance review 10 List of honors 12 Production Operations Community Engagement/Striving to Be an Industry role 13 Responsible Production Operations Outstanding Corporate Citizen Production safety management 44 Supporting education initiatives 98 ESG Governance Fire safety management 47 Welfare and charity actions 99 Chemical management 49 ESG governance structure 16 Supply chain management 51 ESG strategy 20 Stakeholder engagement 22 Key Performance Indicators 100 Materiality assessment 23 Risk management 24 Energy Conservation and Environmental Reader Feedback 103 Responsible business conduct 25 Protection/Advancing Green and Low-Carbon Development Environmental management indicators 58 achievement Addressing climate change 59 Resources management 64 Atmospheric pollutant management 68 Waste management 68 Biodiversity protection 69 2 3Chairman's Statement About the Company ESG Governance Products and Services Production Operations Energy Conservation and Environmental Protection Employee's Rights and Benefits Community Engagement Key Performance Indicators ESG Report 2024 Lu Thai Textile Co. Ltd Chairman's Statement Dear friends thank you for your interest in this Report. On behalf of the Board of Directors of Lu Thai Textile I would like to express my heartfelt gratitude for your long-term support for the Company! The year 2024 marks our unwavering commitment to the principle of "customer first and pioneering progress." We have focused on the market customers and products with business objectives as our guiding principle. Taking "customer first" as both the starting and finishing point of our work we have continuously advanced our key account strategy. While ensuring the stability of traditional markets we have strengthened our efforts in developing emerging markets. Leveraging the advantages of our integrated industrial chain and well-structured domestic and international production bases we actively provide customers with integrated fabric and apparel solutions. We have further optimized our domestic marketing network vigorously expanded the domestic market deepened our presence in the professional wear sector and proactively explored the women's wear market. Additionally we have continued to expand our overseas offices and marketing teams to better understand customer needs develop markets sell products and enhance customer service.The year 2024 captures our innovative practices in "cost reduction efficiency enhancement and coordinated development." L i u Z i b i n We have continued to advance the Lu Thai Production System improving product delivery and service capabilities while further strengthening our research and innovation capabilities. Each product line has focused on strategic business goals reinforcing lean Luthai Textile Co.Ltd management across the entire product realization process under the "profit center" model. Internally we have optimized resources Chairman President by refining organizational structures sharing resources reducing procurement costs and minimizing quality losses all to enhance overall operational efficiency. In yarn production we have precisely managed material usage optimized cotton consumption and dynamically controlled conventional product inventories while continuously improving raw cotton procurement standards. In yarn- dyed fabric production we have expanded product categories to match market demand ensuring continuous product iteration and competitiveness. Meanwhile knitted fabrics functional fabrics printed and dyed fabrics and new apparel categories have taken on the critical role of product portfolio adjustment market expansion and future growth support. By focusing on key challenges and systematically overcoming them we have unlocked new performance growth drivers for the Company.The year 2024 resonates with our steadfast pursuit of "building independent brands and enhancing brand value." In response to evolving market dynamics and customer needs we have upheld the "customer first" philosophy continuously enriching our product portfolio improving quality and cultivating our brand. We have established a globalized system encompassing research and development design production and marketing in the textile and apparel industry driving our brand internationalization strategy forward. We have continued to promote independent brand development hosting the 2024 Lu Thai Textile Brand Launch Event and introducing the "Lu Thai 1987" and online brand "Lu Thai Jianxing." In 2024 Lu Thai ranked among the top in the textile and apparel industry with a brand strength score of 915 and a brand value of RMB12748 million achieving continuous brand value growth.The year 2024 highlights our strong sense of "focusing on business operations and providing solid support services." With firm confidence and unwavering determination we have effectively coordinated various aspects of our work. Functional departments have actively benchmarked best practices to enhance their capabilities and provide strong support for key projects and business operations.We have strengthened the management and operation of our major R&D platform improving the commercial success rate of product development tasks. We have integrated upstream and downstream supply chain resources to build an efficient globally integrated supply chain system enhancing supply efficiency. By fostering a people-oriented culture we have accelerated the development of an international talent team and improved the training and management mechanisms for key positions. Additionally we have reinforced risk awareness and the concept of safe development improving risk identification and prevention systems to ensure safe operations and sustainable development.The year 2024 tells a compelling story of "nurturing cultural heritage and fostering collective spirit." On June 8 2024 as we celebrated the 37th anniversary of our founding we unveiled a new version of our corporate culture philosophy—a blend of tradition and innovation that aligns with both our current development landscape and future aspirations. A clearly defined mission vision and set of values have further unified our thinking strengthened our cohesion and ignited our teams’ motivation and passion laying a solid ideological and cultural foundation for Lu Thai’s next 30 years of growth. We remain deeply committed to our corporate social responsibility translating our responsibilities and mission into action thereby shaping a corporate image that is both responsible and compassionate. From organizing vibrant cultural and sports activities such as choir performances football tournaments and basketball leagues to holding recognition events such as the "Outstanding Employee Awards" and the "Lu Thai Craftsmanship Awards" we continue to move in harmony with national development and resonate with our employees' growth.With endless mountains and rivers ahead we forge ahead without pause. As we embark on a new journey in 2025 we will continue to prioritize ESG practices enhance ESG performance and collaborate with our partners to build a sustainable supply chain contributing Lu Thai’s strength to global sustainable development.April 10 2025 4 5Chairman's Statement About the Company ESG Governance Products and Services Production Operations Energy Conservation and Environmental Protection Employee's Rights and Benefits Community Engagement Key Performance Indicators ESG Report 2024 Lu Thai Textile Co. Ltd About the Company Group profile Lu Thai Textile Co. Ltd. founded in 1987 is a global apparel solutions provider with premium fabrics as its core. The Company is one of the world's leading manufacturers of high-end yarn-dyed fabrics and a key producer of shirts for top international brands. As a dual-listed company (A-share and B-share) Lu Thai Textile possesses a fully integrated industrial chain that spans textile production dyeing and finishing garment manufacturing and brand marketing. The Company has established 19 subsidiaries three offices and over 40 production factories across countries including the United States Italy and Japan making it an integrated innovative and international textile and apparel enterprise encompassing R&D design manufacturing and marketing services.Currently the Company operates 700000 spindles and 102000 thread spindles with an annual production capacity of 220 million meters of yarn-dyed fabric 90 million meters of dyed fabric 20 million meters of functional fabric 14000 tons of knitted fabric and 30 million garments.More than 60% of its products are exported to over 60 countries and regions including the United States the European Union and Japan. The Company holds strategic partnerships with renowned domestic and international brands with its high- and mid-end yarn-dyed fabric exports accounting for more than 18% of the global market share.Lu Thai Textile is committed to sustainable and environmentally friendly development dedicated to creating eco-friendly textile products for the world. The Company has consistently maintained a leading position in China's textile industry and has received numerous accolades including the "National May Day Labor Award" the "China Quality Award" the third "China Grand Awards for Industry" the title of "Manufacturing Single- item Champion Demonstration Enterprise" recognition as one of the "Top 30 Chinese Printing and Dyeing Enterprises" and the "Outstanding Contribution Brand Unit" award. In 2023 the Company was listed in the Yicai Corporate Social Responsibility Ranking in China and received the "ESG Innovation Practice Award." Since 1995 the Company has obtained certifications for ISO9001 Quality Management System ISO14001 Environmental Management System ISO45001 Occupational Health and Safety Management System and SA8000 Social Responsibility Management System. Additionally it has fully implemented the Excellence Performance Management Model with a strong focus on developing the Lu Thai Production System (LTPS). To date the Company has invested over RMB500 million in social welfare initiatives including poverty alleviation education support student aid elderly care community assistance and environmental protection.Our culture Mission: Global Elegance Weaving Excellence Green Manufacturing Better Living Focusing on the textile industry with fabric and apparel as our core business we provide healthy comfortable and reliable products through international operations and green intelligent manufacturing serving customers worldwide and fulfilling people’s aspirations for a better life.Vision: A Global Green Fashion Textile and Apparel Industry Group with Leading Fabric Excellence We aim to be a world-class textile and apparel industry group with leading fabric development and manufacturing capabilities a globally structured presence in marketing R&D design and production and renowned expertise in integrated fabric and apparel services. With outstanding product quality green fashion leading market share and strong brand influence we strive to set the industry benchmark.Values: Customer First Driven by Hard Work Pursuit of Excellence Integrity and Win-Win Cooperation Customer First: Customers are the foundation of the Company’s survival. Meeting customer needs and ensuring customer satisfaction are our unwavering pursuits and the ultimate standards for evaluating our work. We stay attuned to changes in customer needs respond quickly innovate operations and provide high-quality products and services to meet customers’ personalized and diverse needs enhance their experience and achieve customer satisfaction.Driven by Hard Work: To adapt to new circumstances the Company emphasizes the role of hardworking individuals while upholding a "people-oriented" approach providing a platform for them to realize their value and achieve rapid growth. Resources are directed toward those who strive ensuring their efforts are recognized so as to achieve common development of the strivers and enterprises.Employees are encouraged to set ambitious goals challenge themselves persevere through difficulties prioritize dedication over personal comfort take on responsibilities where they are most needed and proactively address challenges to create value for the Company and its customers.Pursuit of Excellence: Only through continuous pursuit of excellence can we adapt to new circumstances overcome challenges maintain competitiveness and drive personal and corporate development. There is no "best" only "better." In both conduct and work we are never satisfied with present success always aiming for world-class standards. We remain open and inclusive embrace change pursue continuous improvement and foster innovation striving to surpass ourselves our competitors and industry benchmarks and to pursue excellence in every field and every task.Integrity and Win-Win Cooperation: Integrity is the foundation of survival and win-win cooperation is the path to development. In partnerships we adhere to business ethics remain honest and trustworthy fulfill stakeholder needs and create value for all parties.By fostering stable trusting and mutually beneficial relationships we unite strengths to achieve greater success and share the fruits of development. 6 7Chairman's Statement About the Company ESG Governance Products and Services Production Operations Energy Conservation and Environmental Protection Employee's Rights and Benefits Community Engagement Key Performance Indicators ESG Report 2024 Lu Thai Textile Co. Ltd Development history The Company was recognized as a "Five-starred Chinese Industrial Enterprise in the Performance of Corporate Social Responsibilities".The "set of technologies and equipment for automatic digital cheese dyeing" jointly developed based on the "industry-university- research-application" cooperation was granted the First Prize of the State Scientific and Technological Progress Award.Zibo No. 7 Cotton Mill Lu Thai's The Company started The strategic cooperation project of predecessor was The Lu Thai Textile its new 30-year voyage. Lu Thai Textile and Xiniu Intelligent established. Lu Thai became A-share listed. Fabric Museum Manufacturing was initiated.Beijing Sichuang Apparels Co. A high-level forum on and the Lu Thai Ltd. was opened. the theme "Gather the Lu Thai Textile Company was Development Top Wisdom of the opened formally. The Company was recognized as a Museum were Industry Plan Lu Thai's National Yarn-dyed Fabric Product opened. The Lu Thai The Company Future Development" R&D Base. Industrial Design was held to plan the It passed the passed the The Zichuan Urban Sewage Summit was held.ISO9001 Quality ISO14001 Treatment Plant invested by the development vision for The construction of The inauguration ceremony for Management Environmental Company was put into operation.the next three decades. the Functional Fabric new projects at Lu Thai Group's System Management The Lu Thai Sports Square was Lu Thai Milan Office The Company was Intelligent Ecological overseas production base was Certification. System put into use. was opened.recognized as a Park Project began. held.Certification. The Company was "National Industrial The construction of Lu Thai Textile was listed on Ranguang Textile Lu Thai School granted the "China Design Center" making the Lu Thai knitting the 2023 Yicai Corporate Social Co. Ltd. was of Textile and Quality Award". it the first enterprise to project began and Responsibility Ranking in China acquired. Apparel Shandong win this honor in Zibo and won the "ESG Innovation Lu Thai Group was Phase I was put into University of City.incorporated. production.Practice Award" Technology was The water reuse project 1987 The Company founded. was completed. 1990 1995 1998 passed the SA8000 Social Responsibility Management 2021 System 20042017 20192023 1999 Certification. 2015 199320132020 19881997 2000 20102024 2005200620082022 2012201420162018 Lu Thai Textile Beijing Lu Thai Lu Thai issued RMB1.4 Company was Shirt Co. Ltd. was billion of convertible restricted into a joint- established. 2007 2009 bonds.A grand ceremony stock enterprise with was held because Lu Thai (America) The unveiling The Phase I project of foreign investment Lu Thai became the Phase II project Textile Co. Ltd. was ceremony of the Functional Fabric and renamed Lu Thai B-share listed. LuFeng Company of LuFeng Company opened. the Company's Intelligent Ecological Lu Thai Textile released Textile Co. Ltd. Yunjinchuan 2003 The Company academician Park was put into "LUTHAI 1987" and " Limited was Clothing Co. Ltd. Limited was put into established. production. won the "Global workstation was production. Luthai Lite Collection" was acquired. Lu Thai was Performance held in the West The project of colored online brandThe Company Lu Thai Textile Company a recognized as a won the title Excellence Award". District Industrial spun yarns was put China-Thailand joint venture "Stated-accredited into production.Enterprise "China Advanced The Company Park was incorporated. Enterprise with was granted The Company Technology Center" the third "China successfully by five departments an Excellent including Performance Model Grand Awards for passed the on- The unveiling ceremony of the The Company passed (2012)". Industry". site accreditation "Zichuan District Aesthetic the OHSAS18001 the National of demonstration Education Practice Base" at Lu Thai Occupational Health Development and enterprises in the Lu Thai's operating Vocational Training School was and Safety Management Reform Commission The Lu Thai Textile and Apparel Engineering Research textile industry and the Ministry revenue exceeded held.System Certification. Institute was founded. for energy-saving RMB10 billion a new Lu Thai Textile was included on Zibo Luqun Textile Co. of Science and and emission start of the new 30- the list of the First China Industry Technology. The Company was granted the Second Prize of the State Ltd. was established. Carbon Peaking "Leaders" Scientific and Technological Progress Award for its key reduction year voyage. (enterprises).processing technology of ultra-high count pure cotton technology fabrics and its industrialization high-flux films for printing application and dyeing wastewater and recycling technology. 8 9Chairman's Statement About the Company ESG Governance Products and Services Production Operations Energy Conservation and Environmental Protection Employee's Rights and Benefits Community Engagement Key Performance Indicators ESG Report 2024 Lu Thai Textile Co. Ltd Performance review Net profit attributable to shareholders of Total payments to employees including salaries bonuses allowances benefits housing the Company provident fund and social insurance Economic performance 410 Million 1607 Million Taxes contributed to the state Social contribution value per share Cash dividends distributed over the past three years 355 Million 3.1 RMB/share 397 Million Proportion of R&D personnel to Donations to society and total employees government 12.8 % 2970400 RMB Social performance R&D investment and its percentage of revenue Investment in education support 3.39 % 1594600 RMB Own brands: LT·GRFF Lu Thai Lu Thai 1987 Luthai Lite Collection NARCISU and so on.Own brands sales 6235100 RMB 10 11Chairman's Statement About the Company ESG Governance Products and Services Production Operations Energy Conservation and Environmental Protection Employee's Rights and Benefits Community Engagement Key Performance Indicators ESG Report 2024 Lu Thai Textile Co. Ltd List of honors 2023 "Digital 2023 "Top 100 Most 2023-2024 " China’s Transformation and Attractive Private Great Textile Craftsman" Innovation Unit" in Enterprises for University and "Most Beautiful Shandong Province's textile Graduates" in Shandong Textile Worker" and apparel industry Province China National Textile & Apparel Council Shandong Textile and Apparel Association Human Resources and Social Security Key Technologies and Industrialization Key Technologies and Industrialization of "2024 China Textile and Apparel Brand China Finance Trade Light Industry Department of Shandong Province of Structural Design and Preparation for Efficient Green and Fashionable Online Competitiveness Advantage Enterprise" Textile and Tobacco Trade Union and the Thermal and Moisture Comfort Functional Dyeing – First Prize for Scientific and Women's Workers Department of the All- Textiles – Second Prize for Scientific and Technological Progress China Federation of Trade Unions Technological Progress Industry role "2024 China Textile "Shandong Province May "Continuous Innovation and Apparel Brand Fourth Red Flag Youth Unit" in the Top Ten Competitiveness League Committee" Categories of Textile Advantage Enterprise" Industry Organizations Role of the Companyhonorary title Innovation Products China Chamber of Commerce for Import and Export of Textiles The 7th Vice Chairman Organization China National Textile and Apparel Council Shandong Provincial Committee of the China Textile Information Center Communist Youth League China Dyeing and Printing Association The 7th Vice Chairman Organization Specially Invited China National Garment Association The 8th Vice Chairman Organization Key Technologies and One of the first enterprises Industrialization of Structural Key Technologies and nationwide to be certified Design and Preparation China Textile Engineering Society The 26th Standing Director Organization for Thermal and Moisture Industrialization of as a "5A Enterprise Comfort Functional Textiles – Efficient Green and in Corporate Culture Second Prize for Scientific and Fashionable Online Dyeing Development and China National Textile and Apparel Council The 5th Vice Chairman Organization Specially Invited Technological Progress Management" China Textile Enterprise Association The 10th Vice Chairman Organization China National Textile and Apparel Council China National Textile and Apparel Council China Corporate Culture Institute Chinese Association for Textile Enterprises Culture Construction The 5th Vice Chairman Organization Specially Invited China Corporate Culture Institute The Vice Chairman Organization Silver Award in the Fashion Product Category Advanced Collective 2024 "Outstanding China Cotton Textile Association The 6th Vice Chairman Organization at the 5th "Governor’s in the "Five Zibo" Contribution Enterprise Cup" Industrial Design Development Initiative for Stable Economic Competition Growth" China Council for Brand Development Standing Director Organization China Association for Quality Member Department of Industry and Information Zibo Municipal People's Government Zibo Municipal People's Government Technology of Shandong Province Shandong Textile and Apparel Association Rotating Chairman Organization Shandong Council for Brand Development Standing Director Organization 12 13ESG Governance Lu Thai Textile continues to enhance its ESG governance mechanism optimizing its governance structure to ensure scientific and effective decision-making. The Company actively implements environmental social and governance initiatives integrating ESG systematically into daily operations to comprehensively support high-quality corporate operations and achieve sustainable and healthy development.Chairman's Statement About the Company ESG Governance Products and Services Production Operations Energy Conservation and Environmental Protection Employee's Rights and Benefits Community Engagement Key Performance Indicators ESG Report 2024 Lu Thai Textile Co. Ltd Organizational Chart ESG governance structure Shareholders The Board of Directors is responsible for reviewing the Group's Meeting Decision- Board of overall ESG strategy and reports as well as assuming ultimate making Level Directors responsibility for the Group's overall direction strategy objectives and performance in sustainable development.Board of Supervisors The Board of Supervisors monitors the Group’s ESG policies Supervisory Board of framework management approach and implementation status Board of Directors Level Supervisors providing recommendations for improvement to the Board of Directors.Board of Directors' Special Committee *Formulating the Group’s ESG objectives strategy and work plans and submitting them to the Board of Directors for approval.*Identifying monitoring and reviewing potential ESG issues President risks and opportunities that may impact the Group’s business ESG Steering operations and submitting them to the Board of Directors for Management Group approval Level President *Prioritizing relevant ESG issues risks and opportunities analyzing Department their potential impact on business operations and identifying key heads ESG issues risks and opportunities.*Preparing and reviewing the annual ESG report and other ESG- related disclosures.*Handling other ESG matters deemed necessary by the ESG Steering Senior Grou Management *Collecting and organizing materials for ESG reports.*Providing ESG feedback and recommendations within their Execution All respective departments.Level departments *Implementing sustainable development policies and initiatives assigned to them.*Integrating and evaluating ESG risks or opportunities identified within their operations.Wholly-owned Majority-owned Branch companies Functional Production l ines subsidiaries subsidiaries and offices departments Governance structure The Company continuously improves the basic governance structure composed of the General Meeting of Shareholders the Board of Directors the Board of Supervisors and the Senior Management whose rights and responsibilities are defined in accordance with the Company Law the Securities Law the Code of Corporate Governance for Listed Companies in China the Guidelines No.1 of the Shenzhen Stock Exchange on the Self-regulation of Listed Companies - Standardized Operation of the Companies Listed on the Mainboard and other relevant laws regulations and regulatory documents in order to ensure efficient and standardized operations.The Board of Directors performs its duties in strict accordance with the Articles of Association and the Rules of Procedure of the Board of Directors. The Board of Directors has established the Strategy Committee the Audit Committee the Nomination Committee and the Remuneration Committee. These special committees make full use of their expertise to make scientific decisions on the Company's development issues. 16 17Chairman's Statement About the Company ESG Governance Products and Services Production Operations Energy Conservation and Environmental Protection Employee's Rights and Benefits Community Engagement Key Performance Indicators ESG Report 2024 Lu Thai Textile Co. Ltd Committee Name Main Responsibilities Functioning of Committee The Company's Board of Directors consists of 12 directors including four independent directors four female directors and three foreign directors. In 2024 the Company held ten board meetings achieving a 100% attendance rate. During the Reporting Period 43 resolutions were Chairman: Liu Zibin reviewed and approved covering topics such as related-party transactions equity incentive unlocking policy revisions periodic reports profit Conduct feasible study on the Company's distribution share repurchases and ESG materiality issues.Members: Xu Zhinan Liu Deming Xu long-term strategic development plans and Strategy Jianlv Zheng Huisheng Zhang Zhanqi major investment decisions determine the Zhang Keming Du Lixin Zhou Zhiji Qu Committee Company's development plans improve Dongmei Peng Yanli and Quan Yuhua. Chinese directors investment decision-making process enhance In 2024 the Committee held one Male directors scientific decision-making and improve the Female directors Foreign directors quality and effectiveness of major investment meeting with a full attendance rate of the decision. members. 33%25% 67% 75% Chairman: Qu Dongmei Study and formulate the criteria and procedures for selection of the Company's Members: Liu Zibin Xu Zhinan Zhou Zhiji Nomination directors and senior management optimize and Peng Yanli Committee the structures of the Board of Directors and In 2024 the Committee held two the management and improve corporate meetings with a full attendance rate of governance structure. the members.Date of Service Name of Director Gender Age Position(s) Commencement Liu Zibin Male 60 Chairman and President June 6 2007 Chairman: Peng Yanli Xu Zhinan Male 95 Vice Chairman May 6 2004 Formulate and review remuneration policies and plans formulate and implement Members: Liu Zibin Zhou Zhiji and Qu Liu Deming Male 35 Director May 12 2017 Compensation assessment and evaluation criteria improve Dongmei Committee the assessment and evaluation system Xu Jianlv Female 50 Director June 10 2022 for the Company's directors and senior In 2024 the Committee held two management and formulate scientific meetings with a full attendance rate of effective remuneration management policies. the members.Zheng Huisheng Male 37 Director June 10 2022 Zhang Zhanqi Male 53 Director and Vice President June 10 2022 Zhang Keming Male 57 Director and Chief Accountant June 10 2022 Du Lixin Male 50 Director and Chief Engineer June 10 2022 Chairman: Zhou Zhiji Responsible for the communication supervision and review of the Company's Independent DirectorMembers: Liu Deming and Qu Dongmei Zhou Zhiji Male 62 March 10 2019 Audit Committee internal and external audits strengthen the Board's effective oversight of the management In 2024 the Committee held six meetings Qu Dongmei Female 56 Independent Director June 10 2019 enhance internal control capabilities and with a full attendance rate of the improve internal control policies. members. Peng Yanli Female 64 Independent Director June 10 2022 Quan Yuhua Female 69 Independent Director June 10 2022 Board development Lu Thai Textile places great importance on board development continuously improving its structure and functions. The Company ensures the effective operation of board committees emphasizes the independence and diversity of board composition and actively conducts training for board members and management. The responsibilities of board members are assigned based on their professional experience to ensure efficient board operations and scientific decision-making thereby enhancing the overall management level and operational efficiency of the Company. 18 19Chairman's Statement About the Company ESG Governance Products and Services Production Operations Energy Conservation and Environmental Protection Employee's Rights and Benefits Community Engagement Key Performance Indicators ESG Report 2024 Lu Thai Textile Co. Ltd A company's sustainable development management shows the responsibility and respect of the company for its customers employees ESG strategy products and future. For many years Lu Thai has kept pace with international and domestic development trends for years. By vigorously responding to national and industry policies Continental Group has demonstrated its sustainable development through actions. 2022-2026 ESG Strategic Goal: Achieve an industry-leading level of green low-carbon environmentally friendly and sustainable development. Aligned with the United Nations' 17 Sustainable Development Goals (SDGs): Prior to the launch of a new project Continental Group has entrusted environmental assessment agencies to conduct environmental assessment including the assessment of the influence on local biodiversity. Protect restore and promote sustainable use of terrestrial The Company includes health safety and environmental In the meantime it earnestly performs greening ecosystems sustainably manage forests combat Promote peaceful and inclusive societies for sustainable requirements in the bidding invitation requirements for governance holds activities on Arbor Day and enhances desertification and halt and reverse land degradation development provide access to justice for all and build effective accountable and inclusive institutions at all levels. suppliers thus indirectly urging suppliers and contractors employees' awareness of environmental protection. and halt biodiversity loss. to enhance safety and environmental protection.Conserve and sustainably use the oceans The Company has actively participated in industry Conserve and sustainably use the oceans seas and marine seas and marine resources for sustainable Strengthen the means of implementation and revitalize organizations and initiatives joined multiple industry resources for sustainable development. 陆地生物 和平、正义与development. the Global Partnership for Sustainable Development. associations earnestly conducted industry exchanges 强大机构 and promoted industry development.水下生物促进目标实现的伙伴关系 Lu Thai Textile has responded to the 2030 "carbon The Company has actively paid taxes to the governments peak" and 2060 "carbon neutrality" goals by actively Take urgent action to combat End poverty in all its forms of countries where it operates to promote the economic carrying out climate action plans. climate change and its impacts. everywhere. development of the surrounding communities.无贫穷气候行动 Reports have been released regularly and ESG-related information is actively disclosed to enhance transparency.Meanwhile the Company has updated the requirements End hunger achieve food The Company has implemented the policy of local Ensure sustainable for suppliers and implemented stricter standards of duty 零饥饿 security improved nutrition employment and provided regionally competitive consumption and performance for suppliers. It has worked with suppliers 负责任 and promote sustainable remuneration and benefits.production patterns.and contractors to actively perform duties to improve 消费和生产 agriculture. Provide a comfortable and safe working environment ensuring the industrial chain environment and drive social employee safety and health. During the pandemic no cluster responsibility practice. infections occurred among Company employees.良好健康与 The Company properly prevented and treated occupational Diverse assistance activities have been conducted in 福祉Make cities and human 可持续 Ensure healthy lives and diseases. Besides the Company has established and improved economically backward villages. Lu Thai Textile has 城市和社区 employees' profiles of occupational health and organized purchased agricultural products from local farmers and settlements inclusive safe promote well-being for annual check-ups to protect the physical and mental health of donated daily necessities to residents to improve their resilient and sustainable. all at all ages. employees.living conditions.优质教育 The Company has improved its employee education 减少不平等 and training mechanism. In 2024 23988 employees Ensure inclusive and equitable participated in vocational training achieving a 100% The Company has established plants in overseas Reduce inequality within and quality education and promote vocational training coverage rate.developing countries and actively created job among countries. lifelong opportunities for all. The Company organizes activities to support students opportunities to develop local economies.产业、创新和 性别平等 every fall by providing employees' children with 基础建设 scholarships. It also donates educational funds to society to cultivate textile talent.In 2024 Lu Thai invested RMB 207Millon in research funds 体面的工作和 清洁饮水和 in total. Additionally it has been granted 548 patents in Build resilient infrastructure promote inclusive 经济增长 卫生设施 The principle of gender equality has been observed. The total including eight software copyrights. Lu Thai has and sustainable industrialization and foster Achieve gender equality and empower all Labor Union has earnestly protected female employees 经济适用的 organized or participated in the formulation of 75 national innovation. women and girls.清洁能源 and improved their competence.and industry standards. An equal remuneration system has been developed to ensure equal pay for equal work between male and female employees.Promote sustained inclusive and sustainable By performing the digital and intelligent transformation of economic growth full and productive Ensure availability and sustainable management of production lines Lu Thai has reduced labor intensity and Production departments have been encouraged to employment and decent work for all. water and sanitation for all.raised resource utilization efficiency. propose new measures to save water. The Company has increased investment in reclaimed water reuse projects further promoting recycled use of water resources and providing a long-term guarantee for social development.Ensure access to affordable reliable sustainable and modern energy for all.The Company has conducted the project of rooftop photovoltaic power generation to contribute to the energy transformation of enterprises and society. 20 21Chairman's Statement About the Company ESG Governance Products and Services Production Operations Energy Conservation and Environmental Protection Employee's Rights and Benefits Community Engagement Key Performance Indicators ESG Report 2024 Lu Thai Textile Co. Ltd Stakeholder engagement We place great importance on maintaining effective communication with internal and external stakeholders. By establishing a regular communication mechanism we promptly understand stakeholders’ concerns and continuously optimize communication channels to actively respond to their interests. This approach ensures the orderly progress of the Company's sustainable development initiatives.Stakeholders Issues of Concern Means of Communication Actions of Lu Thai Textile Operation in Strictly complying with laws and Compliance Supervision and regulations Materiality assessment Safe and Green inspection Actively responding to environmental Production Visits calls and formulating action plans Fulfillment of Social Material providing Helping the poor and improving people's As part of our stakeholder engagement policy we conduct periodic ESG materiality assessments. This year with the assistance of external Government Responsibilities livelihoods experts we carried out a materiality analysis in accordance with the guidance provided by the Self-Regulatory Guidance No. 3 for Companies Supporting the public welfare Listed on Shenzhen Stock Exchange—Preparation of Sustainability Report and the Self-Regulatory Guidance No. 17 for Companies Listed on Shenzhen Stock Exchange—Preparation of Sustainability Report(Trial) issued by the Shenzhen Stock Exchange. Through this process we Customer visits Improving the product quality management identified material issues that significantly impact both the Company and stakeholders determining the most critical issues for our business Product Quality Customer service and stakeholders while providing insights for the Group’s ESG reporting and strategy.Responsible Marketing systemhotline Integrity Improving the customer relationship Opening business Respecting Customers' management systemoperations Conducting the customer satisfaction survey Customers Opinions Satisfaction survey Visiting customers regularly Materiality Assessment Process Corporate Governance Shareholders Meeting and Profitability On-site survey Compliant operations openness and 1 ESG Issue Library Creation: Telephone consulting transparencyHonest and Compliant Interaction Easy of the Safeguarding the legitimate rights and Operations Referring to the materiality issue distribution guidance from the Self-Regulatory Guidance No. 3 for Companies Listed on Shenzhen Competitive Edge Shenzhen Stock Exchange interests of shareholders by laws Stock Exchange—Preparation of Sustainability Report and the Self-Regulatory Guidance No. 17 for Companies Listed on Shenzhen Stock Shareholders and Exchange—Preparation of Sustainability Report(Trial) we established the 2024 ESG issue library after a comprehensive evaluation investors considering the Company’s overall business development in 2024 and best ESG management practices within the industry.Require suppliers to sign a quality Product Quality Supplier audits statement Product Safety and On-site Require chemical product suppliers 2 Formulation and Implementation of Stakeholder Engagement Plan： Environmental communication to provide relevant qualification Compliance Telephone and email certificates and sign an environmental By focusing on trends in the textile industry and broader socio-economic developments we engaged with key stakeholders during the Corporate Compliance communication compliance statement Reporting Period through communication and surveys to gather their opinions and suggestions.Suppliers Operations Conduct regular on-site supplier audits and communications Improving the remuneration Respecting Human Rights management system 3 Quantitative Assessment of ESG Material Issues： Remuneration and The Labor Union and the Improving employee cultivation and Benefits employee representative promotion mechanisms Internal and external stakeholders were invited to evaluate the materiality of various ESG issues and a materiality matrix was developed.Career Development assembly Diverse communication channels The Company conducted a survey inviting stakeholders from different categories to rate the materiality of Lu Thai’s 2024 ESG issues on Channels Employee complaint Helping for employees in need a scale of one to five with higher scores indicating greater materiality. After the survey the Company analyzed the feedback and assessed Employees Health and Safe Satisfaction survey Establish a comprehensive complaint each issue’s materiality based on two dimensions: "materiality to corporate development" and "materiality to stakeholders." This Production mechanism and channels analysis resulted in the ESG materiality matrix for the year. The survey covered a wide range of stakeholders including board members senior and mid-level management employees customers investors suppliers and government regulators.Exchange visits among senior Continuously improving supplier management personnel management procedures and strengthening the control of operational risks Green and Low-carbon Exchange and cooperation in Strengthening contract management and Development experience and technology standardizing credible procurement Honest and Compliant Daily communication Sharing experience and technology and exchanging needed goods 4 Review and Approval of the Materiality Assessment Report：Operations Exchange through industry Value chain partners conferences Building industry-university-research platforms The materiality assessment report was submitted to the management for review and approval before the results were published.A Harmonious Supervision by the Helping the poor and joining public Community masses welfare activities Relationship Visiting communities Community donation and landscaping Communities and the Contributing to the Promoting employment and developing local suppliers public Community Economy 22 23Chairman's Statement About the Company ESG Governance Products and Services Production Operations Energy Conservation and Environmental Protection Employee's Rights and Benefits Community Engagement Key Performance Indicators ESG Report 2024 Lu Thai Textile Co. Ltd Lu Thai Textile 2024 ESG Materiality Analysis Matrix Board Level Audit Committee Third Line of Defense Audit Department Responsible for supervisory functions conducting audits and investigations to implement a closed-loop risk management system. It analyzes and independently assesses whether the Company's risk management measures are adequate and effective.Second Line of Defense 16 Risk Management Departments (e.g. Finance Management Department Corporate Management Department) Design implement and oversee risk management practices based on the nature of risks and the Company's risk tolerance to ensure the Company establishes a suitable and effective risk management system.First Line of Defense Through this assessment we identified 22 material issues of stakeholder concern in 2024.All departments Factories and functional departments are responsible for executing fundamental risk management processes Environment (E) Corresponding Society (S) Corresponding and control measures promptly identifying managing and controlling related risk control systems.Chapter Chapter 01 Climate Change Response Chapter 5 09 Information Security and Privacy Protection Chapter 2 02 Pollutant Emissions Chapter 5 10 Technology Ethics Chapter 2 03 Waste Management Chapter 5 11 Innovation-Driven Development Chapter 3 04 Ecosystem and Biodiversity Protection Chapter 5 12 Product and Services Chapter 3 05 Environmental Compliance Management Chapter 5 13 Supply Chain Security Chapter 4 Responsible business conduct 06 Energy Utilization Chapter 5 14 Workplace Safety Chapter 4 07 Water Resource Utilization Chapter 5 15 Chemical Safety Chapter 4 08 Circular Economy Chapter 5 16 Fair Treatment of SMEs Chapter 4 Compliance management 17 Employees Chapter 6 18 Social Contribution Chapter 7 Adhering to operations with integrity law-abiding principles and compliance Lu Thai Textile has always emphasized that integrity and law-abiding principles are the foundation of the Company and always abode by the values of "integrity and win-win situation". Under the Governance (G) Corresponding Chapter philosophy of operations with integrity the Company has continued to strengthen the compliance management system improve compliance management policies optimize auditing procedures and implement internal control in order to safeguard healthy and sustainable 19 Anti-Bribery and Anti-Corruption Chapter 2 development. 20 Anti-Unfair Competition Chapter 2 21 Stakeholder Engagement Chapter 2、3、4 22 Due Diligence Chapter 4 Compliance management system Risk management Following the philosophy of operations with integrity the Company has continued to improve the compliance management system strengthened the effect of internal auditing and established the Self-assessment Control Matrix based on the procedure documents in order to determine the assessment scope and priorities. With all procedures assessed the on-site testing has identified deficiencies made suggestions Effective risk management strengthens corporate operations. The Company in accordance with the Code of Corporate Governance for Listed for improvement and timely produced the Internal Control Self-assessment Report to ensure effective internal control assessment.Companies in China and other national laws as well as its Articles of Association identifies internal and external risks and formulates response To promote normative and institutionalized business operations the Company considering its realities has formulated the Regulations on measures. Risks are managed through a structured process including information collection risk assessment and analysis strategy formulation Internal Auditing in accordance with the Internal Auditing Standards and the Basic Norms for Corporate Internal Control promulgated by the risk response and monitoring and improvement. Additionally the Company has established a "Three Lines of Defense" risk management Ministry of Finance and the relevant laws and regulations. By doing so it has effectively improved the overall management and risk prevention framework to enhance the rationality standardization and effectiveness of its risk management practices.capabilities. 24 25Chairman's Statement About the Company ESG Governance Products and Services Production Operations Energy Conservation and Environmental Protection Employee's Rights and Benefits Community Engagement Key Performance Indicators ESG Report 2024 Lu Thai Textile Co. Ltd Internal audit Business ethics The Company values the implementation of internal control. Following its 18 guidelines for internal control the Company tested and assessed The Company attaches great importance to business ethics and strictly complies with laws and regulations of countries where it operates as well the system development and implementation of the internal control of the Head Office and holding subsidiaries. As a result deficiencies in as the industry recognized code of conduct. It has established a Code of Ethics Control Procedure and it advocates honesty and trustworthiness design and implementation were identified and improved effectively. In 2024 the Company assessed the internal control of seven subsidiaries fair competition anti-corruption openness and transparency and supervises the business behavior of partners committed to creating an and issued the internal control assessment matrices with internal control audit coverage of 80.45%. honest fair clean and harmonious operating environment.Indicator (Unit) 2022 2023 2024 Anti-corruption and bribery Internal control audit coverage (%) 89.03% 82.15% 80.45% The Company strictly complies with anti-corruption and anti-bribery laws and Note: Internal control assessment coverage is the ratio of the total assets regulations in its operating regions and has signed the Anti-Bribery Commitment of the assessed entities to the Company's consolidated total assets Letter. It continuously improves its anti-corruption supervision mechanism to ensure compliant corporate operations.The Company conducts audits by relevant policies every year. In the first half of 2024 the Company conducted a special audit on the procurement of dyeing auxiliaries and the sales activities of the Global Marketing Department Garment The relevant department Oversees Internal Audit Activities Marketing Department and Brand Promotion Department. The audit covered supplier selection price inquiries and comparisons bidding management long- term inventory handling sales processes sales pricing and accounts receivable Targets Indicators 2022 2023 2024 collection. In the second half of 2024 internal control evaluations of subsidiaries were conducted and no corruption or fraudulent activities were identified.Senior leaders Quantity of non-conformance events 0 0 0 Middle-level leaders Quantity of non-conformance events and related functions 0 0 0 Employees Quantity of non-conformance events 0 0 0 External audit results Standard unqualified audit Standard unqualified audit Standard unqualified audit Shareholders opinions opinions opinions Code of conduct for employees Suppliers Quantity of non-conformance events 0 0 0 The Company continues to strengthen employee behavior management by strictly requiring employees to act in accordance with laws guiding and supervising employees to abide by rules and regulations and operating in compliance. Through the promotion of corporate culture Information disclosure publicity and education training of laws inspection and supervision of employee behaviors and other measures the Company urges employees to raise awareness of ethical standards and improve their own moral accomplishment to ensure the implementation of integrity values and The Company has established and improved the information disclosure mechanism which ethical behavior and thereby promote the healthy development of various business.received positive feedback from investors: Complaint reporting mechanism As at the end of 2024 the Company had been rated A for seven consecutive years in the information disclosure assessment on the listed companies on the Mainboard by the Shenzhen Stock Exchange. The Company actively improves its complaint and whistleblowing mechanism by providing multiple reporting channels including mail telephone email and in-person reports. Customers employees suppliers business partners and all individuals with business dealings with the The Company releases its performance results as well as major and temporary announcements to investors of A- and B- Group are encouraged to report corruption fraud violations of company policies or any suspected illegal activities.shares via Internet media (cninfo.com) designated by the China Securities Regulatory Commission as well as Securities Times Shanghai Securities News China Securities Journal and Ta Kung Pao. We are committed to strictly protecting whistleblower privacy and prohibit the disclosure of personal information or report details to any third party. Retaliation against whistleblowers is strictly prohibited.The Company responds in real time to investors' messages and questions via the "Interaction Easy" of the Shenzhen Reports will be investigated within 30 working days and a written investigation report will be issued. Follow-up actions will continue to be Stock Exchange. In 2024 a total of 75 questions were replied with a response rate of 100%.monitored. Employees found to have violated confidentiality policies will face disciplinary action based on severity including reassignment 26 27Chairman's Statement About the Company ESG Governance Products and Services Production Operations Energy Conservation and Environmental Protection Employee's Rights and Benefits Community Engagement Key Performance Indicators ESG Report 2024 Lu Thai Textile Co. Ltd Information security and privacy protection Information Security Protection Measures The Company configures firewall security policies and installs server-side Information security security protection systems.Server Security We actively implement measures to enhance information security across five dimensions: computer security network security data security hardware security and operational environment security. To minimize the risk of data breaches we have deployed firewalls intrusion prevention systems vulnerability scanning systems and bastion hosts as protective measures.Computer Security The Company deploys unified antivirus Data Security software and endpoint security protection The Company has established the Information System Operation Management Process systems. By extracting data from the firewall Offsite and cross-location backups for the Information Security Management Regulations and the IT Infrastructure Operation intrusion prevention system the Company business data in the data center have been Management Process to enhance data security emergency response mechanisms detects and eliminates threats such as implemented. The operating system uses and procedures. In the event of a suspected data breach our IT operations team will malicious attacks and Trojan viruses. virtual machine disaster recovery backups immediately verify the incident assess the extent of the data breach and affected and devices adopt active-active disaster systems report the situation to the leadership team suspend relevant data access recovery across different locations. Regular notify affected users and issue an announcement following legal and regulatory recovery testing is conducted to ensure data requirements. availability reliability and recoverability.Network Security Deploy a bastion host management system The IT operations team will assess affected systems data and devices conduct log The Company has been equipped to manage access permissions and code tracing for forensic analysis and preserve relevant evidence. Affected users will be with security devices and measures approvals for IT system administrators informed of the resolution and the affected systems and devices will be restored. including firewalls intrusion while recording backend operations of IT Security vulnerabilities identified during the investigation will be addressed through prevention systems and internet personnel.system upgrades and reinforcements to prevent future attacks. behavior management tools.Hardware Equipment Conduct daily inspections promptly report and follow up on identified issues.An environmental monitoring system is in place to track the status of UPS power During the Reporting Period the Group did not experience any data breaches or legal disputes related to information and data security involving supplies indoor temperature and humidity lighting fire safety equipment and the Group or its employees. fresh air systems in real time. Develop and implement emergency response drill plans proactively conduct drills and promptly address issues identified during the process.The Company regularly provides employees with information security training and promotes cybersecurity awareness across the Group to continuously enhance employees' awareness of information security and privacy protection.Privacy protection The Company and its affiliates are required to strictly comply with the Data Security Law of the People's Republic of China and the Personal Information Protection Law of the People's Republic of China. Confidentiality agreements must be signed with stakeholders regarding sensitive information. Unless required by laws and regulations or approved by the customer such information will not be disclosed to any third party in any form. 28 29Chairman's Statement About the Company ESG Governance Products and Services Production Operations Energy Conservation and Environmental Protection Employee's Rights and Benefits Community Engagement Key Performance Indicators ESG Report 2024 Lu Thai Textile Co. Ltd Products and Services Building First-Class Products and Services In the face of the complex and ever-changing market situation the Company leveraged the driving force of marketing and called on various departments to collaborate efficiently with each other actively go global deeply understand market changes and get an insight into customer needs. It focused on targeted research and development design with "technology fashion and green" as the new industry positioning and the goal of "becoming a global apparel solution provider with cutting-edge fabrics as the core" the Company continued to do a good job in products and services.UN Sustainable Development Goals 30 31Chairman's Statement About the Company ESG Governance Products and Services Production Operations Energy Conservation and Environmental Protection Employee's Rights and Benefits Community Engagement Key Performance Indicators ESG Report 2024 Lu Thai Textile Co. Ltd R&D and innovation Industry-university-research cooperation Adhering to the "Four-in-One" innovation philosophy which "lets the enterprise play the major role adopts the customer-oriented approach is underpinned by research institutes and universities and emphasizes the alliance with strategic customers and major suppliers" the Company The Company collaborates with many universities and scientific institutes ranging from the training of basic talents and core technology R&D.has formed a three-level R&D innovation team led by Lu Thai Engineering Technological Institute focusing on breaking through the professional Lu Thai has explored and established an all-round industry-university-research collaboration mechanism with many institutes. As at the end expertise for production lines and mainly comprising the quality control teams of the workshops and groups of the plants. By doing so it has of 2024 the Company established a long-term partnership with universities such as Donghua University Hong Kong Polytechnic University continuously enhanced the internal innovation mechanism developed the scientific and technological innovation platforms deepened the Jiangnan University Qingdao University and Wuhan Textile University. Through R&D cooperation with leading institutes in new technologies industry-university-research cooperation and laid a solid foundation for the Company's innovation cause. materials and products the Company has improved its R&D capability.Investment in technological innovation Industry-Academia Collaboration In 2024 the Company's total investment in scientific and technological research and development reached RMB 207Millon . By the Science and Science and Technology end of 2024 the Company had undertaken eight Technology Awards Programs Donghua University national-level scientific research and innovation Provincial-level and above platforms and five provincial-level platforms. It Undertaken provincial-level and awards: 60 items had received a total of 60 national and provincial- above science and technology The Company has established the "National Collaborative Innovation Center of level Science and Technology Progress Awards programs: 20 itemsOne National First Prize for Key Technologies for Textile Industry" with Donghua University for research of including one national first prize for science Science and Technology Progress new fiber material technologies and key technologies for eco-friendly dyeing and and technology progress and three national Patents and Standards finishing. In 2024 the project "Key Technologies and Industrialization of Structural second prizes for science and technology Three National Second Prizes for Authorized patents held: 548 items Design and Preparation of Thermal and Moisture Comfort Functional Textiles" progress. The Company undertook 20 science Science and Technology Progress Exchange on Industry-Academia-Research jointly researched with Donghua University was awarded the Second Prize of the and technology projects at the provincial level or led or participated in the formulation: Collaboration Project between the College of Science and Technology Progress Award by the China National Textile and Apparel above and obtained 548 authorized patents and 9 Provincial and Ministerial First 75 items Textiles and Clothing Donghua University and Council eight software copyrights. Additionally it led or Prizes for Science and Technology Lu Thai Textile Co. Ltd.participated in the formulation of 75 national Progress and industry standards.Developing scientific and technological R&D platforms Wuhan Textile University In 2024 Lu Thai collaborated with Wuhan Textile University to apply for The Company highlights the building and development of scientific and technological innovation platforms establishing core technology the "High-Efficiency CNC Online Dyeing System Technology" project platforms in the major phrases of research design and test to improve core technologies in the whole process. which was awarded the First Prize of the Science and Technology Progress Award by the China National Textile and Apparel Council.With the help of technological platforms such as the national enterprise technical center national demonstration base for talent introduction national yarn-dyed fabric R&D base In 2024 a "Framework Agreement on Technical R&D Cooperation for Domestic Lyocell Fiber Fabrics" was signed to conduct research on the Exchange on Industry-Academia-Research Shandong Provincial Engineering Technology Research Center and Shandong Big Data Collaboration Project between Wuhan Textile garment Industry Innovation Center Lu Thai Engineering Technological Institute has worked with development of domestic Lyocell. Textile University and Lu Thai Textile Co.research platform production lines for yarn-dyed fabric knitted fabric apparel printing and dyeing and Ltd.functional fabric to conduct explorations. It has been dedicated to researching cutting-edge technologies. As a result they have paved a path based on fabric but transcending traditional fabric in scientific and technological innovation quality improvement brand promotion low- carbon energy conservation and corporate culture development.Lu Thai Engineering Technological Institute has capitalized on the design resources of the national industrial design center the Shandong Provincial industrial design center an Italian The Company signed a strategic collaboration agreement with Qingdao University in 2016 to carry out in-depth Textile garment designer's workshop for fabric design and the enterprise brand design center to build a cooperation with the university in scientific research talent cultivation and social services thereby contributing to textile and apparel design platform. The platform has integrated textile and garment trendy socioeconomic and technological development.design platform design textile new material design popular fabrics design and garment brand design which represents the major backbone of the enterprise's independent brand building and promotes Qingdao In terms of scientific research Qingdao University and the Company have jointly established the "Lu Thai Group- the Company to take leap from creation to creativity. -Qingdao University Research Center" and the "National Collaborative Innovation Center of Key Technologies for University Textile Industry" to be dedicated to the research of industrial textile and marine biomass fiber.Lu Thai owns a complete set of testing devices and equipment for textile materials fabrics and In terms of talent cultivation the Company has set up the "Lu Thai Scholarship" in the university and the "Lu Thai garments as well as dyeing and finishing auxiliaries. It is equipped with laboratories that meet International Talent Reserve Class". As a result a number of brilliant students from textile universities have been Textile garment testing and international standards including the constant temperature and humidity laboratory textile attracted to Lu Thai and become the backbone of the Company.material testing laboratory fabric and garment laboratory and chemical analysis and synthesis experimental platforms laboratory. Also it has an experienced professional testing team that is familiar with domestic and overseas standards. As a result Lu Thai has made every effort to establish an integrated testing and inspection platform in the textile and apparel industry at home and abroad. 32 33Chairman's Statement About the Company ESG Governance Products and Services Production Operations Energy Conservation and Environmental Protection Employee's Rights and Benefits Community Engagement Key Performance Indicators ESG Report 2024 Lu Thai Textile Co. Ltd The Company has cooperated with the Shandong University of Technology in establishing the Lu Thai School of Textile and Apparel thereby promoting organic industry-education integration collaborative innovation and The Company attaches great importance to the protection of intellectual property rights integrated industrial-educational development. constantly improves the protection system of intellectual property rights sets up teams for The Company has also worked together with the university to establish laboratories and share research apparatus the protection of intellectual property rights and patents. Moreover it formulates trademark and platforms achieving research integration in terms of the scientific program development and project management standards patent application management procedures stands against the Shandong application. infringement of trademark rights patent rights and copyrights and continues to improve the University of A team of part-time teachers including Taishan Scholars senior experts of the Company and excellent holistic operation efficiency in protecting intellectual property rights. In 2024 the Company Technology technological talent has been built to achieve the integration of teaching resources of the university and the applied for three government projects at the national provincial and ministerial levels Company. developed 137 new products and new processes conducted 25 technological improvement The Company has utilized the comprehensive strengths of both sides to introduce more practice and internship projects obtained 17 authorized patents and one software copyright and led or participated in opportunities for students. It donates RMB1 million to the university for collaborative talent cultivation every year. Intellectual property the formulation of four industry standards.Meanwhile the "Lu Thai Scholarship" has been set up to encourage students to work hard achieving "joint talent rights protection cultivation" between the university and the Company.Tiangong In 2022 Lu Thai collaborated with Tiangong University to apply for the "Virtual Human Body Modeling System for Technological research and development University Clothing" which won the Excellence Award in the First Intelligent Manufacturing Innovation Competition.Lu Thai Textile has maintained an open attitude toward technological R&D and kept strengthening the industry-university-research cooperation.It has developed green and low-carbon technologies both independently and through cooperation and has continuously optimized the Company's clean production mode. As a result the Company's green and sustainable development has been constantly boosted. Over the years Shandong In 2022 the Company engaged in strategic discussions with Shandong Vocational College of Science and the Company has obtained more than 500 patents including 27 projects that have received national and provincial-level awards for scientific Vocational College of Technology and signed a strategic cooperation agreement to jointly establish an overseas "Luban Workshop" for and technological progress in energy conservation.Science and the joint cultivation of international talents.Technology Key R&D projects "High-Efficiency CNC Online Dyeing 1 System Technology" Project The Company in collaboration with Wuhan Textile University and other relevant institutions has conducted joint research on this technology which utilizes a CNC- integrated system for textile dyeing control. It is widely applied in the dyeing of yarn-dyed fabrics printing and dyeing and knitted textiles. This technology eliminates the traditional reliance on temperature and salt in In 2024 the Company launched 25 company-level technological research projects and 137 department-level research topics. The company- dyeing processes addressing the industry's challenge level projects primarily focused on overcoming technical bottlenecks and conducting research on forward-looking technology reserves. Among of high-salinity wastewater generated by conventional them the research project on knitted fabric dyeing technology achieved a production order volume of 5488000 million meters with a first- reactive dyeing. It actively promotes and serves as a class delivery rate of 97.2% showing a significant increase compared to the previous year.model for the green and high-quality development of the textile industry advancing textile products toward the mid-to-high end of the global value chain. Furthermore Product innovation it significantly contributes to achieving China's goals of becoming a manufacturing and quality powerhouse.The development of the Company for 37 years has always relied on good product development and realization capabilities and in the future it still needs to rely on products to win the market. Currently customers are increasingly interested in the green and environmentally-friendly products with differentiated attributes and high performance. The Company adapts to the development trend of the textile industry focus on customer needs and do a good job in technological innovation and upgrades. It continuously carries out product research and development and product upgrades to provide customers with products that meet their needs and are cost-effective.The Company in collaboration with Donghua University and other relevant institutions has jointly conducted research on this project which explores the multi-layered structure morphological design and functional regulation of thermal and moisture Raw material innovation: Sustainable exploration development and cooperation in terms of raw materials; the renewable degradable comfort fibers as well as the mechanisms and evaluation systems for assessing textile products' thermal and moisture comfort recyclable and sustainable product series that are featured by the natural fiber and regenerated cellulose fiber series and the bio-based series.properties. The research focuses on fiber composition design and preparation technologies functional textile design and key technologies such as multi-component composite spinning composite structural weaving one-bath dyeing for multi-fiber blends Technological innovation: In-depth research into crafts and technologies and the full-process processing for green production that is water- and moisture absorption and wicking functional finishing. This project provides valuable references and demonstrations for the saving energy-saving and low-emission; active efforts to keep improving green and environmentally-friendly technology to effectively support preparation and application of high-quality thermal and moisture comfort functional fibers. and continuously upgrade products. 2 "Key Technologies and Industrialization of Structural Design and Preparation of Thermal and Product innovation: Continuous exploration of innovative full-life-cycle application solutions for textile products and continuous introduction Moisture Comfort Functional Textiles" Project of new and environmentally-friendly product series that are skin-friendly and comfortable elastic easy-to-manage and good for health to the market by continuous updating multicomponent products such as natural fiber regenerated cellulose fiber and ultra soft texture fiber. 34 35Chairman's Statement About the Company ESG Governance Products and Services Production Operations Energy Conservation and Environmental Protection Employee's Rights and Benefits Community Engagement Key Performance Indicators ESG Report 2024 Lu Thai Textile Co. Ltd Quality control Case Lu Thai Xurou – Ultimate Softness Soft but Structured Smooth but Not Slippery The Company adheres to the principle of "quality is the most important element of enterprise survival and development" and continuously strengthens quality control with the purpose of "meeting the needs of customers and the market". In accordance with GB/T 19001-2016 Quality Management Systems the Company’s Quality Management Department formulates quality indicators translating customer feedback into quality requirements to precisely control both process quality and result conformity. The quality management assessment mechanism has been refined to incentivize improvements in product quality across workshops.By selecting premium raw materials and integrating Lu Thai’s innovative patented spinning technology with high-precision weaving craftsmanship and proprietary dyeing and finishing techniques the Lu Thai Xurou product was developed. Standard System for It features a soft and smooth texture skin-friendly breathability and a weightless Raw material Physical Indicators pressure-free wearing experience. The combination of natural materials and cold- preparation and GB JIS AATCC/ASTM resistant thermal insulation functions provides an unrestricted and comfortable fit. ISO Alignment between control room Lu Thai’s internal control and actual data Standard System for Standard System for Raw Appearance Inspection Product pre- Quality Process control Yarn Inspection Defective fabric batch Standard control room assurance room Color difference hand color variation of finished feel elasticity uniformity System products grading Case Ocean Yarn Fabric strength alignment with evaluation responsibility fabric indicators determination This regenerated polyester fiber product is made from 100% recycled materials Standard System for sourced from plastic bottles collected within 50 kilometers of coastlines or washed Process Inspection ashore by ocean waves. Globally its production has repurposed 900 million discarded Central laboratory Re-dyeing rate elasticity plastic bottles making it one of the most certified and traceable regenerated fibers in styling process yarn color linear density strength the world.Comfortable Cotton Feel: The interwoven structure of fine cotton and Ocean Yarn imparts a soft cotton-like touch with an elegant sheen. It also boasts high elasticity excellent shape recovery wrinkle resistance easy care quick drying and breathability. □ Re-dyeing rate elasticity styling process yarn color linear density strength □ The Company holds production meetings every day to address any problems encountered during production.□ The Company strengthens the process compliance inspection on each process and supervises and manages it through sampling and tracking methods.□ The Company actively communicates with customers and absorbs their valuable feedback on product quality.Case □ The Company organizes professional training for quality management personnel to continuously improve the quality awareness and ability Bio-Based Nylon 56 Fabric of all staff.□ The Company has a CNAS laboratory certified by the state achieving independent testing of some indicators.□ The Company sends 100% of textiles to professional organizations (e.g. ITS SGS BV Keken) for a safety inspection to make certain that these Nylon 56 is a novel nylon material synthesized from bio-based pentamethylenediamine and adipic acid. Compared to traditional petroleum-based textiles are in line with market laws and regulations standards and customers' RSL requirements.nylon it offers a lower carbon footprint and superior environmental friendliness.As the concept of sustainable development continues to gain traction Nylon 56 as a bio-based and biodegradable material is expected to play a key role in green and eco-friendly products.Case Recycled Cotton Fabric Laboratory Recycled cotton fabric is designed to reduce environmental pollution by reclaiming and repurposing discarded textiles. Lu Thai has been actively promoting resource circularity and is committed to sustainable development. Through technological innovation we strive to create a brighter future for sustainable fashion. With over 30 years of expertise Lu Thai has leveraged its full-industry-chain technological innovations to develop recycled cotton fabric paying sincere tribute to sustainability and the future.Personnel Training 36 37Chairman's Statement About the Company ESG Governance Products and Services Production Operations Energy Conservation and Environmental Protection Employee's Rights and Benefits Community Engagement Key Performance Indicators ESG Report 2024 Lu Thai Textile Co. Ltd Fabric Exhibitions Apparel Exhibitions Production Lines Pass Rate Participated in eight fabric exhibitions: seven overseas and one Participated in seven Yarn 99.99% apparel exhibitions: four In 2024 Lu Thai Textile achieved a 99.99% Grade A storage domestic exhibitions. overseas and three domestic Yarn-dyed fabrics 99.30% rate for spun yarn a 99.30% acceptance rate for yarn-dyed Jointly exhibited with exhibitions.apparel business in 4 of products a 97.47% first-grade storage rate for knitted Knitted fabrics 97.47% them.products a 97.95% delivery rate for piece-dyed finished Piece-dyed fabrics 97.95% products a 95.90% delivery rate for functional fabric finished products and a 99.99% delivery rate for garments. Tracking of potential fabric customers from exhibitions: Functional fabrics 95.90% Number of Potential No. Exhibition Name Date Customers Ready-to-wear clothing 99.99% 1 London Textile fair January 9-10 2024 2 MAGIC SHOW February 13-15 2024 4 Customer services and maintenance 3 TEXWORLD/APP February 5-7 2024 1 The Company adheres to a customer-centric approach and comprehensively enhances its customer service capabilities. 4 EXPO Producción March 20-22 2024 7 Constant care 5 China Shandong Export Commodities Fair (Osaka Japan) March 6-8 2024 1 6 Functional Textiles Shanghai by Performance Days April 2-3 2024 7 SaigonTex April 10-13 2024 3 The Company communicates with customers through multiple media such as email WeChat and phone to learn customers' demands and suggestions. 8 2024 Canton Fair (Spring) May 1-4 2024 1 The Company formulates the standard procedure for handling customer complaints in time so as to protect the legal rights and interests of customers. 9 ITF May 20-22 2024 1 The Company convenes video conferences with customers to discuss technical issues and problems of quality.The Company regularly visits customers to maintain a good relationship. In 2024 the Company conducted 435 customer visits.The Company invites customers to visit or participate in new product releases or important events to enhance customer 10 International Sourcing Expo Australia June 12-14 2024 relationships. In 2024 the Company hosted 478 customer visits.The Company regularly organizes exhibitions and product promotion events to help customers gain a better understanding of its high-quality products and services. 11 Premiere Vision July 2-4 2024 1 12 Intertextile Shanghai Apparel Fabrics (Hotel) August 27-29 2024 3 13 ATSC August 26-28 2024 1 14 Preview In SEOUL August 21-23 2024 1 15 Textile salon February 2024 16 London Textile fair September 3-4 2024 17 Functional Textiles Shanghai by Performance Days October 9-10 2024 15 18 FASHION WORLD TOKYO October 15-17 2024 4 19 2024 Canton Fair (Autumn) October 31 2024 2 Total 45 38 39Chairman's Statement About the Company ESG Governance Products and Services Production Operations Energy Conservation and Environmental Protection Employee's Rights and Benefits Community Engagement Key Performance Indicators ESG Report 2024 Lu Thai Textile Co. Ltd This year a total of 241 customers were surveyed for fabric products with 215 valid responses achieving a response rate of 89% and a final score Tracking of potential fabric customers from exhibitions: of 82.79. For apparel products 108 customers were surveyed with 77 valid responses achieving a response rate of 71% and a final score of 80.1.Number of Potential No Exhibition Name Date Customers Fabric business 1 MAGIC SHOW February 13-15 2024 6 2 TEXWORLD/APP February 5-7 2024 2 Corporate brand image 86.84 3 SaigonTex April 10-13 2024 1 Products 86.36 4 2024 Canton Fair (Spring) May 1-4 2024 2 R&D 82.42 Design 81.02 5 LINK-TCE Clothing Customization Expo – Shanghai May 8-10 2024 4 Price 65.77 6 ITF May 20-22 2024 2 Delivery 83.64 7 Premiere Vision July 2-4 2024 1 Service 85.31 8 ATSC August 26-28 2024 2 Customer relationships 90.95 9 Preview In SEOUL August 21-23 2024 2 Average Customer Satisfaction Scores for Each Business Segment 10 FASHION WORLD TOKYO October 15-17 2024 2 Total 24 Customer satisfaction in customer relationship management and corporate brand image was relatively high.Customer satisfaction survey and improvements Apparel business Lu Thai Textile continuously improves and optimizes its customer satisfaction survey every year including survey methods questionnaire design and enhancing the authenticity rigor and objectivity of the survey. Based on the survey results a satisfaction report is generated to analyze the Company's strengths and weaknesses allowing for targeted improvements to better meet customer expectations. Customer relations 90.3 This year the Company received guidance from satisfaction experts and further refined and upgraded the questionnaire. It now covers eight dimensions: corporate brand image product quality R&D design price delivery service capability and customer relationships with a total of Corporate brand image 82.6 25 rating items. A ten-point scale is used for scoring. Service 82.5 Product quality 81.8 Pre-sales consultation and information acquisition Lu Thai Satisfaction Model – Basic Model Delivery 81.6 Qx Delivery process Design 77.2 Qi Qm Product performance R&D 76.4 Qc Pricing 69.4 Qz Price Satisfaction Loyalty Average Customer Satisfaction Scores for Each Business Segment R&D and design After-sales service Customer satisfaction in customer relationship management corporate brand image and service was relatively high.Customer relationships 40 41Production Operations/ Responsible Production Operations In line with the principles of being responsible to customers employees and society Lu Thai implements the philosophy of "responsible production and operations" improves safety production mechanisms enhances chemical safety management and regulates supplier behaviors with high standards. The Company is committed to providing customers with reliable products and employees with a safe workplace minimizing social impact during sound operations safeguarding the rights and interests of stakeholders in multiple aspects and achieving the long-term stable development of the Company.UN Sustainable Development GoalsChairman's Statement About the Company ESG Governance Products and Services Production Operations Energy Conservation and Environmental Protection Employee's Rights and Benefits Community Engagement Key Performance Indicators ESG Report 2024 Lu Thai Textile Co. Ltd Production safety management Production safety involving employees' life safety is the key to the survival and development of the enterprise. Its responsibilities are weightier than Mount Tai. Luthai insists on the principle of "safety first prevention first and comprehensive management" and implements national local and industrial policies laws and regulations and standards on safety work. The Company consciously carries out all rules and regulations of production safety and supervises the implementation.Safety management system and institutional development The Company is conducting an on-site safety hazard inspection In terms of safety training the Company carried out the training of the first lesson after the Spring Festival Qingming Festival Mid-Autumn Festival and National Day and organized a series of special training in 2024 such as 27 training sessions for new employees 77 safety training sessions for all employees 14 training sessions for special operators two training sessions from invited external experts special equipment training and certified safety engineer training. Moreover the Company has implemented the government's special action requirements on "deep learning deep training wide examination" for safety production and achieved the normalization of safety training and learning. In addition the Company has conducted "Safety Production Month" activities with the theme of "everyone values safety and knows how to The Company has continuously The Company has set up a Safety The Company has established the safety production targets management handle emergencies and ensures smooth life channels" aiming to prevent and defuse major risks eliminate potential safety hazards in a timely improved safety production Production Committee and an standardization templates Accident Emergency Rescue Leading responsibility system and signed manner and effectively curb production safety incidents and finally create a sound environment for safety production. In the whole year of 2024 conducted internal safety Group around the Safety Inspection the Responsibility Letter for Safety the Company conducted more than 100 various safety training sessions with over 13000 trainees.standardization reviews for various Office with a total number of 68 safety Production Targets Management at departments and supervised and management personnel. all levels. Besides the Company has broken down the accident control inspected the implementation of targets by levels and implemented strict safety standards in various plants. assessments of personnel at all levels to ensure the fulfillment of the safety production control targets.Eradicate fire risks and personal casualties Prevent the accidents of major environments and occupational health and safety The Company's Safety Control Targets in 2024 Eliminate grand electromechanical Avoid traffic accident equipment accidents The Company has implemented that the safety facilities in construction must be designed constructed approved and put into production and use at the same time as the main project to control and prevent safety accidents from the source. Various types of training Company-wide safety training safety morning meetings The Company continues to improve the dual prevention system for hierarchical control of production safety risk and investigation and governance of hazards and persists in risk prevention and early identification. In terms of hierarchical risk control the Company identifies the risk hazards in operating activities and equipment and facilities in each sector every year classifies the types and consequences of possible incidents and determines the hierarchy of control and the corresponding accountable person according to the category. In 2024 the Company identified a total of 291 risk hazards in various production and operating activities. For each risk hazard the Company has formulated specific risk control measures to prevent and control risks by ways such as standard specification safety training distribution of supplies for labor conservation and protection on-site supervision and inspection emergency response drills and timely handling of incidents.In terms of risk hazard inspections the Company's Safety Inspection Office carried out various inspections in 2024 including special inspections for dust explosion-proof diagnosis by invited safety experts intrinsic safety of equipment confined space hazardous chemicals special inspections of warehouses general inspections during the holidays and departmental self-inspections and self-corrections which identified First lesson on resumption of work more than 23000 safety hazards. During the Reporting Period all risk hazards were eliminated. 44 45Chairman's Statement About the Company ESG Governance Products and Services Production Operations Energy Conservation and Environmental Protection Employee's Rights and Benefits Community Engagement Key Performance Indicators ESG Report 2024 Lu Thai Textile Co. Ltd Diversified “Safety Production Month” activities During the "Safety Production Month" campaign in June 2024 the Company conducted a variety of activities such as publicity board design special training on safety production inspections on potential safety hazards award-winning essay contests safety promotion short videos and emergency response drills. All employees actively participated in these activities and their safety awareness was effectively improved.The Company organized various departments to carry out publicity board design activities with the theme of "everyone values safety and knows how to handle emergencies" and created a total of 58 boards.A total of 320 teams from various departments and subsidiaries participated in the "Inspection Prevention and Promotion" safety hazard investigation activity with 7260 participants. A total of 4185 hazards were identified and 68 outstanding teams were selected.The Company is conducting an emergency drill Fire safety management As a key unit of fire safety the Company implements the working policy of "prevention first with a combination of fire prevention and firefighting" standardizes fire safety management procedures strictly implements fire safety management regulations to effectively prevent fire accidents and guarantee the implementation of emergency rescue. In addition these measures minimize property damage and personnel injury The Company conducted the "Safety Production Douyin Contest" collecting 70 entries and awarding two first prizes three second prizes caused by fire occurrence and fire rescuing.and five third prizes. Two of these entries were selected for the "Taizhan Cup" Douyin Contest organized by the Zichuan District Emergency The Company's Security Department conducts targeted annual training sessions on fire safety knowledge fire extinguishing and evacuation Management Bureau.drills training for key and critical areas and hands-on training for volunteer firefighters on firefighting equipment. These initiatives aim to raise The Company organized the "Emergency Drill Competition" with 15 teams participating. After evaluation by experts from the Zichuan overall fire safety awareness and enhance emergency response capabilities. Each department strictly adheres to the Hot Work Management District Emergency Management Bureau and safety inspection personnel two first prizes three second prizes and five third prizes were System the Fire Inspection System and the Electrical Safety Management System to establish a solid fire safety firewall.awarded. Luthai in collaboration with China Mobile has developed a 5G Smart Shared Management Platform integrating security and firefighting functions. Through various intelligent features such as AI Engine Security Monitoring Park Access Control Smart Firefighting and Wireless Intercom the platform creates an information-sharing and intelligent management system for security and fire protection. This enhances three-dimensional safety management intelligent emergency support and coordinated emergency response improving the efficiency of the Company's fire safety and security management.Safety production emergency management Video Monitoring Wireless Intercom The Company has established a sound production safety emergency management system and actively carried out emergency response drills to comprehensively improve its capacity for emergency response and accident rescue. For example it has formulated several response plans such as the Regulations on Emergency Preparedness and Response Management the Emergency Preparedness and Response for Fire Accidents the Emergency Preparedness and Response for Hazardous Chemicals Leakage Accidents and the Emergency Preparedness and Response for Natural Gas Leakage Accidents. In 2024 the Company organized each plant to conduct emergency response drills including 30 special response drills and 266 on-site disposal drills and carried out a total of 15 "Emergency Rehearsal Training" in the "Safety Production Month" activities. Through various emergency drills the Company has enhanced the emergency response capabilities of all departments improving self-rescue and mutual aid abilities to safeguard lives and property.Smart Firefighting AI Engine 46 47Chairman's Statement About the Company ESG Governance Products and Services Production Operations Energy Conservation and Environmental Protection Employee's Rights and Benefits Community Engagement Key Performance Indicators ESG Report 2024 Lu Thai Textile Co. Ltd Chemical management Employee training on critical parts Visible fire monitoring Fire safety hazard inspection protection 13332.19 2708 2388 Procurement storage and usage management hours items trainees The Company controls the whole process of procurement transportation storage use and disposal of chemicals especially for the purchase and use of hazardous chemicals. Moreover the Company has formulated management systems and regulations such as the Safety Management Fire extinguishing and evacuation drills Test on automatic sprinklers system Major fire safety incident System for Hazardous Chemicals the Regulations on the Supervision and Inspection of Hazardous Chemicals the Safety Management System 270 11951 0 for the Storage Handling and Use of Liquid Ammonia and the Regulations on the Supervision and Inspection of Major Hazard Installations of Liquid Ammonia prompting each operation to be standardized detailed and normalized.sessions points times For precursor chemicals and explosive chemicals the Company strictly complies with national regulations and reports to the public security authorities in a timely manner. The Company establishes a chemical flow ledger and strictly controls the use to prevent the outflow and illegal use of such chemicals.Chemical suppliers must possess a business license production permit hazardous chemicals registration certificate and other necessary qualifications before approval and must sign the Environmental Compliance Declaration.When each chemical is first purchased in the year a complete MSDS list should be requested from the supplier and hung at the chemical usage and storage site.Fire safety training Each user department must store chemicals in appropriate quantities according to their properties establish and improve hazardous chemicals safety management systems and emergency response plans and assign dedicated personnel for hazardous chemical management with clearly defined responsibilities.Volunteer firefighter training Firefighting and evacuation drill Factories using chemical products must conduct at least one chemical training session per year to educate employees on the properties and hazards of the chemicals used as well as emergency handling and self-rescue procedures in case of spills or contact with eyes or skin. Employees are also trained on proper storage and usage.Chemical administrators must obtain professional certifications through regular external training.Restricted substances control The Company organizes "119 Fire Safety Publicity Month" activities As the international awareness of environmental protection and product safety grows the demand for green production and environment- friendly products has become a major trend. Luthai an international manufacturing enterprise naturally does not hesitate to keep up with the times and has established a whole process chemical control mechanism. 48 49Chairman's Statement About the Company ESG Governance Products and Services Production Operations Energy Conservation and Environmental Protection Employee's Rights and Benefits Community Engagement Key Performance Indicators ESG Report 2024 Lu Thai Textile Co. Ltd Luthai Textile Chemical Management Understand relevant laws and Create a list of concerns on Ways to identify harmful Source control: Management of chemical suppliers regulations and documents harmful substance chemicals Selection of new suppliers Government Chemicals Compliance screening of Material In accordance with the requirements of laws and regulations standards Daily evaluation of suppliers Non-governmental Textiles Safety Data Sheet ("MSDS")On-site audit of suppliers organizations Initial identification of harmful instructions and customers' restricted substances list ("RSL") of each Input Approval/removal of qualified suppliers WastewaterCustomers and brands chemicals according to the type of · Supplier Quality and Safety Assurance Sludge nation and region the Company has established a chemical approval management auxiliariesAgreement Third-party testing system and the Manufacturing Restricted Substances List ("MRSL") which is · Declaration of Environmental Conformity of Chemicals Analysis and tracking of testing data stricter than market regulations/standards. When chemicals for production · Declaration of Environmental Conformity for Raw Materials and pass the experiment test the Company will entrust the third-party testing Auxiliaries organization to conduct the test on toxic and harmful chemicals. Only Management of procurement storage suppliers with test results in conformity with the MRSL are included in Process testing and Ways to identify harmful Chemical Testing use and other aspects of chemicals validation Green technology chemicals the list of qualified suppliers and can then be used for bulk purchase. Safety Management Process of Textile Tap water Substitution of dyeing Compliance screening of Material Meanwhile the Company strengthens the application of efficient and Chemicals Dyeing drainage auxiliary Safety Data Sheet ("MSDS") Provisions for the Management of Warp sizing drainage Reduction of dyeing auxiliary Initial identification of harmful environment-friendly dyeing auxiliary to eliminate the production of toxic Production Departmental Chemicals Emission reduction chemicals according to the type of Organization of drainage and harmful chemicals from the source. process Provisions for the Management of auxiliariesShort process...Procurement of Sizing Agents Dyestuffs Third-party testing and Auxiliaries Analysis and tracking of testing Provisions for the Management data Production process control: of Safety Control for Warehouse Management Department Training is provided to all factories to ensure familiarity with the chemicals Participation in green in use. For orders with specific customer requirements only compliant Creation of a testing data list activities products are used in strict accordance with customer specifications such Brand customers Information disclosure Luthai reduces the level of pollutants through through IPE efficient chemicals management and good as ZDHC Conformity Level 1 or higher dyeing auxiliaries. Chemicals process control. Meanwhile the Company Output-end Water quality works together with relevant parties such as Each batch of finished products shall be sent to a professional third- management Sludge major brands in the supply chain suppliers Product Safety Testing chemical industry and non-governmental party testing institution for restricted substances safety testing. Only after Products organizations to reduce the impacts on the environment.passing the test and receiving a certificate of compliance from the Quality Management Department can the products be packed and shipped.Terminal management: Besides the Company tests the discharged wastewater and sludge for toxic and harmful chemicals according to the wastewater guidelines of Zero Supply chain management Discharge of Hazardous Chemicals ("ZDHC") twice a year to ensure zero discharge of toxic and harmful chemicals.Through a new generation of integrated and collaborative platform (ERP system) based on Internet services and technical architecture the Company has realized the information flow in the whole process from supplier access to purchase warehousing. This has ensured the Wastewater and Sludge Testing Report information flow in all processes of the supply chain improved the efficiency of raw material supply and made the purchase process more standardized and transparent.The Company places great importance on the transparency of chemical information and data. It annually discloses Pollutant Release and Transfer Register (PRTR) data on the ZDHC Gateway and the Institute of Public & Environmental Affairs (IPE). Additionally twice a year the Company publishes wastewater DETOX emission data. At the same time the Company communicates and interacts with suppliers customers Supplier management third-party testing organizations non-governmental organizations and other relevant parties to achieve sustainable improvement of chemicals management.Supplier onboarding When selecting suppliers the candidates are required to possess relevant product qualification certification and have manufactured same or similar products for at least one year with a certain production scale. Priority will be given to suppliers who have obtained authoritative certifications such as the ISO 9001 Quality Management System Certification the ISO14001 Environmental Management System Certification the ISO45001 Occupational Health and Safety Management System Certification the SA8000 Social Responsibility Management System Certification and the Green Factory Certification.Before approval on-site audits are conducted for suppliers to assess whether their production quality control processes and social responsibility performance comply with relevant certification standards. Only after product use and testing meet requirements can they be listed Data Releasing Platform as approved suppliers. Prior to procurement and usage suppliers are required to sign documents such as the Quality Agreement the Supplier Code of Conduct and the Environmental Compliance Declaration to protect the Company’s legal rights and interests. 50 51Chairman's Statement About the Company ESG Governance Products and Services Production Operations Energy Conservation and Environmental Protection Employee's Rights and Benefits Community Engagement Key Performance Indicators ESG Report 2024 Lu Thai Textile Co. Ltd Audit Deficiency Analysis Suppliers conduct a comprehensive analysis of deficiencies identified during the audit to determine the root causes and develop targeted corrective actions. 01 Formulating a Corrective Based on the audit deficiency analysis suppliers develop a detailed corrective action plan including Action Plan corrective measures responsible departments and personnel and a deadline for completion. 02 Implementing Corrective Measures Suppliers implement corrective actions step by step according to the audit plan. 03 Reviewing and Evaluating Suppliers conduct regular reviews to ensure corrective measures are continuously and effectively Corrective Results s implemented and that audit deficiencies are fully resolved.Quality Agreement Environmental Compliance Declaration 04 Summarizing and Sharing The Company collaborates with suppliers of raw materials auxiliary materials and food ingredients of varying scales—from large to Suppliers summarize the lessons learned during the corrective process and voluntarily share them.Corrective Action Experiences small—on the basis of equality and mutual benefit. 05 Routine supplier management In daily management the Company conducts annual surveys on supplier profiles and performs periodic supervision and audits to maintain real-time oversight of their quality and CSR management.Supplier Audit Dimensions Insurance Human Personn EHS Equipment Supplier Audit Report Material Production The Company also conducts semi-annual and annual supplier assessments according to different raw material suppliers and classifies Quality suppliers based on the assessment results.Tier I Supplier (90 points and Appropriately increase purchase volume above) In 2024 a total of 58 suppliers were audited of which 57 passed and one failed. The annual supplier audit plan was fully completed. Tier II Supplier (75–90 points) Normal cooperation For issues identified during the audits we supervise suppliers to carry out corrective actions following the process below and continue to Result monitor progress. Application Tier III Supplier (65–75 points) Send Information Notice rectify within deadline Tier IV Supplier (below 65 points) Suspend supply send Information Notice rectify within deadline and disqualify if requirements are not met 52 53Chairman's Statement About the Company ESG Governance Products and Services Production Operations Energy Conservation and Environmental Protection Employee's Rights and Benefits Community Engagement Key Performance Indicators ESG Report 2024 Lu Thai Textile Co. Ltd Procurement management In terms of procurement whether to invite bids is determined based on different materials and the annual procurement amount. If bidding is required the Bidding Office will conduct publication and assessment to select winning bidders. The Procurement Department drafts contracts based on the bidding documents and the bid documents of the winning bidder and conducts subsequent procurement after being reviewed by the Legal Affairs and approved by the President. For those that do not require bidding the Procurement Department selects suppliers from the List of Qualified Categorized Evaluation Suppliers conducts price inquiries and comparisons confirms purchasers and proceeds with subsequent procurement work.For dyeing aids raw cotton and yarn we priorities products certified by Supply Chain Quality Improvement Bluesign GOTS/OCS and GRS. We continue to promote the use of recycled polyester recycled nylon and recycled cotton to improve resource utilization.Procured materials are subject to full inspection or random sampling Raw Material Inspection Report Develop and implement a supplier audit plan to emphasize our specific requirements for suppliers inspection based on category ensuring that non-conforming inputs are in various aspects through audits. Require suppliers to promptly rectify issues identified during controlled at the source. 01 audits. Audit results serve as key factors in the supplier’s annual comprehensive assessment and directly impact the allocation of procurement shares for the following year.Warehouse management The Company has designated warehouses for storing raw cotton yarn chemicals and other materials strictly following relevant regulations and maintaining appropriate environmental conditions and temperatures for different raw materials.Share the latest management concepts and best practices with suppliers gather their feedback and 02 suggestions and collaborate on addressing quality issues. Communicate Luthai’s quality philosophy and requirements provide technical guidance and 03 training to help suppliers enhance their quality management and encourage them to obtain relevant system certifications.Each batch of incoming materials undergoes an appearance inspection and internal quality sampling test before being accepted into storage. A material inventory ledger is maintained and material requisition follows a "receipt-based requisition" system. The material flow and stock levels can be monitored in real-time through the inventory management system. 04 Collaborate with suppliers on innovative product development to achieve mutual benefits. Internal control The internal control evaluation is carried out by the Audit Department of the Company every year so as to timely identify the loopholes and risks in the supplier management procedure which lays a solid foundation for the building of a responsible supply chain.Case The main contents of internal control evaluation include W h e t h e r a r e a s o n a b l e W h et h e r t h e s u p p l i e rs a re Whether the supplier management At the beginning of the year the Company provided supplier evaluation and s e l e c te d a cco r d i n g to t h e system and supplier elimination system systematic training on in-factory transportation are set up so as to conduct real-time access system is established p r i n c i p l e o f f a i r a n d j u s t management assessment and evaluation and operational safety for its partnered logistics to examine the authenticity competition and the quality on the quality price delivery timeliness companies. a n d l e g i t i m a c y o f t h e assurance agreement is signed supply conditions qualification and reputation operating status of materials suppliers' qualification and with the suppliers on the basis or services provided by suppliers and reputation. of effectively preventing the risk to m a ke rea s o n a b l e s e l e ct i o n a n d of fraud. adjustments to suppliers based on the assessment results. 54 55Chairman's Statement About the Company ESG Governance Products and Services Production Operations Energy Conservation and Environmental Protection Employee's Rights and Benefits Community Engagement Key Performance Indicators ESG Report 2024 Lu Thai Textile Co. Ltd Energy Conservation and Environmental Protection/Advancing Green and Low- Carbon Development With the development of the economy and the advancement of technology global issues such as resource scarcity and climate change have become increasingly urgent. Promoting green and low-carbon development has become a consensus and action for countries around the world to address resource and environmental issues and promote sustainable development. As a green pioneer and initiator of the Green Manufacturing Alliance in the global textile industry Lu Thai has always adhered to the sustainable development path of "green low-carbon and environmentally friendly" followed the economic growth model of "resources - products - renewable resources" and insisted on the operating principles of "reduction reuse and recycling". Based on low- carbon and environmentally-friendly raw materials the Company has promoted the upgrades of equipment in terms of energy conservation and environmentally friendly and achieved the research and application of green processes assisting the world in achieving a win-win supply chain ecosystem and sustainable human development.UN Sustainable Development Goals 56 57Chairman's Statement About the Company ESG Governance Products and Services Production Operations Energy Conservation and Environmental Protection Employee's Rights and Benefits Community Engagement Key Performance Indicators ESG Report 2024 Lu Thai Textile Co. Ltd Environmental management indicators achievement Luthai Environmental Management Achievements in 2024 Data related to wastewater and sewage Indicator (Unit) 2020 2024 Reduction Compared to the Baseline Year COD (Chemical Oxygen Demand) in 349 248 28.94% discharged wastewater (ton) Ammonia nitrogen content in discharged wastewater (ton) 9 3 66.67% Industrial wastewater discharge (10000 cubic meters) 305 291 4.59% Air pollutant emissions Indicator (Unit) 2020 2024 Reduction Compared to the Baseline Year Sulfur dioxide in emitted exhaust 60% gas (ton) 0.5 0.2 Nitrogen oxides in emitted 88.89% exhaust gas (ton) 4.5 0.5 Addressing climate change Climate change is not only an environmental issue but also a development issue. As a global textile enterprise Lu Thai actively regards Waste discharge addressing climate change as an important action for sustainable development vigorously promoting energy conservation and carbon reduction in production and operation and contributing to global climate governance.Indicator (Unit) 2020 2024 Reduction Compared to the Baseline Year Risk analysis and response measures Hazardous waste generation (ton) 51 36 29.41% The Shared Socioeconomic Pathways (SSPs) are a powerful tool introduced by the Intergovernmental Panel on Climate Change (IPCC) in 2010 to Non-hazardous waste generation (sludge) (ton) 14552 11420 21.52% describe global socioeconomic development scenarios. SSPs were developed based on Representative Concentration Pathways (RCPs) and are used to quantitatively describe the relationship between climate change and socioeconomic development pathways reflecting the adaptation and mitigation challenges that future societies may face in response to climate change.Energy consumption density The SSP2 pathway is the most aligned with China's current development status. The Group's scenario analysis includes an optimistic climate change scenario where warming remains below 2oC—SSP 1-2.6 (with a projected 1.8oC increase by 2100 compared to pre-industrial levels) as Indicator (Unit) 2020 2024 Reduction Compared to the Baseline Year well as a pessimistic climate change scenario where warming exceeds 4oC—SSP 5-8.5 (with a projected 4.5oC increase by 2100 compared to pre- industrial levels).Greenhouse gas emission intensity 52.8% (tCO2e per million revenue) 105.849.9 Total energy emission density (tons of 26.3% mpact analysis of risks and response measuresstandard coal per million revenue) 17.5 12.9 Based on our preliminary assessment of risk factors and consideration of the impacts of a low-emission scenario (1.8oC) on carbon pricing renewable energy generation and other transitional climate effects as well as the impacts of a high-emission scenario (4.5oC) on physical risk Note: The baseline year for the above data is 2020. factors we have selected the following climate-related risk factors for further analysis and have outlined the corresponding response measures. 58 59Chairman's Statement About the Company ESG Governance Products and Services Production Operations Energy Conservation and Environmental Protection Employee's Rights and Benefits Community Engagement Key Performance Indicators ESG Report 2024 Lu Thai Textile Co. Ltd Risk Type Risk Name Risk Description Risk Impact Responses The Group’s production bases are Natural disasters such as heavy rainfall Formulate "Production Safety Accident Emergency Plan" to establish an emergency command system set up an emergency office and clarify emergency located in the East China region floods and severe typhoons may personnel and responsibilities to achieve a rapid response to extreme weather. The Emergency Command Team is responsible for command operations and works where extreme weather events have lasting effects on the Group. with the production department to organize personnel for safety inspections of key facilities and equipment while the logistics department ensures material caused by climate change include but During extreme weather events the support.are not limited to typhoons heavy transportation of raw materials and Before extreme weather: Monitor weather changes closely conduct safety inspections and rectify hazards promptly. Prepare protective devices and emergency rainfall droughts and floods. Under products may be disrupted employee equipment in advance ensure readiness of emergency teams and power supply plan employee commuting arrangements material and product transportation a global 1.5° C warming scenario the commuting may become difficult and and schedule production and shipments in advance.Extreme weather frequency of once-in-20-years heavy risks such as power outages water (Typhoons precipitation events is expected to supply interruptions and steam supply During extreme weather: Reduce production on typhoon/heavy rainfall days halt outdoor operations suspend work as needed assign personnel to monitor floods heavy increase by 10% while the frequency disruptions may arise. For example weather conditions in real-time prioritize employee safety and ensure emergency supplies are adequate.rain) of once-in-100-years heavy typhoons may lead to production halts After extreme weather: Conduct damage assessments immediately draw lessons from the event minimize losses and accelerate production recovery.precipitation events is expected and property damage. Additionally to increase by 20%. Under a 2° C during the rainy season red rainstorm Strengthen fixed asset management: Conduct regular inspections and maintenance of production equipment and facilities purchase property insurance for assets warming scenario the frequency of warnings may result in obstructed in high-risk areas and implement additional protective measures to reduce losses from uncontrollable risks.once-in-20-years heavy precipitation material transportation difficulties Regularly analyze supplier risks develop stocking strategies for key raw materials optimize transportation methods and routes for critical raw materials and events is projected to increase by in employee commuting damage to enhance supplier relationships to ensure supply chain stability. 22% and the frequency of once-in- company buildings and equipment Utilize a purified water system to ensure the safety of production water and conduct regular quality testing for domestic and drinking water. 100-years heavy precipitation events affecting production schedules and is expected to rise by more than 45%. increasing facility maintenance costs.Under extreme heat conditions the Group Immediate A cold wave occurs when cold air may need to enhance ventilation and risks causes a local temperature drop of cooling in production plants and offices more than 8° C within 24 hours with leading to increased energy consumption the daily minimum temperature and operational costs. Additionally falling below 4° C. A heatwave is electricity demand surges may cause Prepare peak-load shifting electricity usage plans and work arrangements in advance during peak electricity demand periods.defined as a period of three or more power transmission disruptions affecting Develop backup energy solutions and pre-establish energy emergency response plans.consecutive days with maximum daily normal production.temperatures reaching or exceeding Schedule hazardous materials shipments in summer for early morning or late afternoon to avoid high-temperature periods and reduce fire risks.Under extreme cold conditions the 35° C. Due to human activities Group may need to increase heating Regularly assess supplier risks develop stocking strategies for key raw materials and strengthen supplier relationships.the probability of cold waves has in production facilities and offices Implement protective measures provide appropriate personal protective equipment enhance warning signage conduct specialized inspections decreased to some extent but their resulting in higher energy consumption of boilers steam systems and other equipment and check slippery areas such as staircases ramps and crossings.intensity has shown an increasing (Heatwaves and operational costs. Frozen roads due trend. Cold waves may cause sharp Develop emergency response plans to prevent fires explosions leaks and poisoning incidents.cold waves) to cold weather may disrupt material temperature drops strong winds transportation leading to insufficient raw Ensure factory buildings and fire protection facilities are insulated to prevent equipment damage from freezing.rain snow and freezing conditions material supply and direct production affecting the Group’s raw material Enhance winter safety training to ensure operational safety and conduct safety inspections of employee dormitories.delays or shutdowns. Dry weather production logistics and power conditions may increase the risk of Prepare heatstroke prevention and cooling supplies in summer and minimize outdoor work.operations. At the same time fires explosions leaks and poisoning heatwaves and compound extreme Include high-temperature emergency response training in employee programs and conduct drills for heatstroke and other heat-related illnesses.incidents. Extremely low temperatures events (such as heavy precipitation may cause equipment failures leading Continuously monitor employee health and conduct regular medical check-ups.followed by heatwaves) are becoming to property damage and higher facility more frequent and intense under maintenance costs. Furthermore cold global warming. The increased waves and heatwaves may increase the electricity demand for residential prevalence and severity of cardiovascular cooling during heatwaves may result diseases malaria and heatstroke posing in industrial electricity restrictions for health risks to employees.businesses during certain periods. 60 61Chairman's Statement About the Company ESG Governance Products and Services Production Operations Energy Conservation and Environmental Protection Employee's Rights and Benefits Community Engagement Key Performance Indicators ESG Report 2024 Lu Thai Textile Co. Ltd Risk Type Risk Name Risk Description Risk Impact Responses The Group’s production process The Group's water sources include requires large amounts of water municipal tap water. Water shortages may which is used in dyeing and force reductions in production capacity finishing printing and equipment Set reasonable water conservation targets and implement improvement measures.temporary shutdowns or the adoption of cleaning. As global water scarcity Water scarcity additional water management measures Establish water conservation goals reduce freshwater consumption and increase wastewater reuse.worsens particularly in drought- such as water recycling and water-saving prone and water-stressed regions Develop a comprehensive water resource management system and assessment framework.technologies. This may lead to higher water shortages pose an increasing production costs or lower operating risk to the stability of textile revenue.production and cost management.Long-term risks According to the China Meteorological Administration’s Global Surface Temperature Dataset Temperature variations may affect the Analysis global warming has stability of certain chemical reagents continued since 2015 with records requiring adjustments to production for the hottest year on record being parameters or additional temperature Implement energy-saving renovations for air conditioning and ventilation systems in production facilities and offices to improve energy efficiency.repeatedly broken. The rise in control measures thereby increasing Provide adequate heat protection materials for employees in summer and conduct annual health check-ups.average temperature due to global production costs. Rising temperatures Rising average climate change may bring multiple necessitate enhanced ventilation and Include high-temperature response training in employee programs and conduct emergency drills for heatstroke and other heat-related illnesses.temperature challenges to textile enterprises cooling in production plants and offices including production activities raw Avoid outdoor work during midday high-temperature periods to ensure safe production.leading to higher energy consumption and material supply product quality operational costs. Additionally increased Plan peak-load shifting electricity usage in advance.control and employee health and temperatures may raise the likelihood of safety. Temperature changes may heat-related illnesses such as heatstroke impact fabric and apparel production processes storage conditions and reducing workforce productivity.supply chains.Establish a greenhouse gas emission management framework set energy-saving and carbon reduction targets and gradually reduce carbon Carbon emission rights refer to the emissions intensity and total emissions. Form an Energy Saving and Emission Reduction Task Force to conduct self-assessments and optimize legal right of enterprises to emit reduction measures. Additionally require department and workshop managers to identify high-power equipment and major pollution sources greenhouse gases with each company document findings and further analysis and improvement to ensure that beyond meeting the Group’s emission reduction targets emissions are being allocated a certain quota by the further minimized.government. Although the Group is As carbon emission pricing rises the not currently covered under China’s Strengthen energy efficiency management across production operations including reviewing energy-consuming equipment and energy use Group's carbon trading expenditures national carbon emissions trading replacing high-energy-consuming equipment with energy-efficient alternatives upgrading high-energy equipment and optimizing production may continue to increase impacting system in a low-emission scenario if equipment to improve energy efficiency and reduce greenhouse gas emissions.its financial performance. Moreover Increase in the country continues to implement Policy & higher carbon pricing significantly affects Promote resource recycling by installing recovery systems (e.g. reclaimed water reuse ammonia recovery alkali recycling).carbon emission stricter emission reduction policies and regulatory risks the power and chemical industries Improve energy structure by increasing the use of clean and renewable energy (e.g. expanding photovoltaic power generation projects) and pricing introduces carbon trading policies for potentially leading to rising energy prices reducing reliance on traditional fossil fuels.the textile industry the Group may be or raw material shortages which would included in the carbon quota trading Enhance training and awareness programs to improve employee energy-saving awareness and operational efficiency preventing unnecessary indirectly increase the Group's operating market. As a result the Group’s energy waste.costs.production facilities may need to adopt Strengthen energy management and assess energy consumption in production workshops.more aggressive emission reduction measures or participate in carbon Improve production technology to enhance improve the first pass rate of products thereby reducing raw material and energy consumption per trading to ensure compliance with unit product.greenhouse gas emission regulations. Adopt green operations by promoting paperless offices to reduce greenhouse gas emissions from business activities. 62 63Chairman's Statement About the Company ESG Governance Products and Services Production Operations Energy Conservation and Environmental Protection Employee's Rights and Benefits Community Engagement Key Performance Indicators ESG Report 2024 Lu Thai Textile Co. Ltd Low-carbon practices Energy management Photovoltaic power generation projects We are conducting energy-saving upgrades for electromechanical As of 2024 the Company's installed solar photovoltaic power generation facilities have supplied a total of 70.26 MW grid-connected electricity equipment researching and accounting for 13% of the annual electricity consumption within the total installation scope reducing carbon dioxide emissions by promoting upgrades for fans and approximately 78000 tons. pumps implementing systematic electricity-saving projects and accelerating equipment renewal and replacement and prioritizing the adoption of energy-efficient Energy system optimization and upgrades equipment.We have implemented optimization and upgrades for the steam pipeline network enhancing steam condensate recovery and utilization. Additionally we have carried out a softened water preheating modification project to further advance waste heat recovery enabling an annual steam savings of nearly .Photovoltaic power generation across all industrial parks 20000 tons Application of low-carbon technologies Waste heat recycling The Company's magnetic levitation fan integrated energy-saving technology has achieved a promotion More than 99% of liquid ammonia is recycled through rate of over 80%. the separation of oil and ammonia and that of oil and water during product processing.Liquid ammonia recycling Maglev centrifugal blowers Resources management Luthai integrates sustainable development principles into the entire production and operational process continuously strengthening resource management and adhering to green development concepts. We strictly comply with the Energy Conservation Law of the People's Republic of China the Water Law of the People's Republic of China and the Law of the People's Republic of China on the Promotion of Clean Production among other relevant laws and regulations and have established an energy management system.The Company has formulated the General Resource Utilization Management Process and the Environmental Operation Management Regulations Alkali balance reuse as the Group-wide guidelines for resource utilization management which all entities within the Group must strictly follow. Additionally each Following the alkali recovery project the Company launched the alkali balance reuse project this year to promote waste resource utilization production plant has developed and implemented its own Resource Management System and Energy Conservation and Emission Reduction and green low-carbon practices. This initiative eliminates the high-energy consumption multi-effect evaporation recovery model by balancing Management System in accordance with its specific operational conditions. These systems facilitate standardized and systematic resource alkali production and usage. In Phase I the alkali recovery diluted alkali storage tanks were connected to the wastewater treatment facility utilization management significantly enhancing resource efficiency. to substitute diluted alkali for concentrated alkali ensuring alkali availability at the wastewater treatment station. In Phase II the Company Furthermore the Company has set annual water conservation and energy consumption targets. By improving management practices and installed in-workshop alkali blending and reuse devices where diluted alkali is filtered and purified then blended with concentrated alkali to produce standard alkali which is then reused in desizing and scouring alkali-consuming machines. Both project phases have achieved upgrading technologies we continuously optimize resource utilization methods conduct regular audits of resource consumption and enhance automated control gradually replacing multi-effect evaporation alkali recovery equipment to reduce energy consumption. The project saves overall resource efficiency to ensure the achievement of sustainability goals. RMB1579000 annually. 64 65Chairman's Statement About the Company ESG Governance Products and Services Production Operations Energy Conservation and Environmental Protection Employee's Rights and Benefits Community Engagement Key Performance Indicators ESG Report 2024 Lu Thai Textile Co. Ltd Water footprint tracking Resource management Lu Thai Textile actively conducts water resources management and makes more efforts in the recycling of water resources. Through water treatment and recycling water conservation planning and other measures the Company minimizes tap water consumption alleviating regional water supply pressures and serving as a benchmark example in the industry.Water conservation The company's energy and water saving targets andbreakdown table for 2024 Department Energy saving target(tons of standard coal) Water saving target (m 3) The Company has established a long-term spinning 81 77 mechanism for water conservation formulated plans for unit water consumption and annual water Bleaching and dyeing 91 8374 conservation targets assigned and implemented water conservation goals to each section and weaving 64 266 working team and clarified responsibilities for all levels.Fabric inspection 0 20 In 2024 with the Company's own wastewater treatment plant the Group's reclaimed water Finishing 188 2979 manufacturing equipment had a design capacity of 20000 tons/day and the use rate of reclaimed Inspection and packing 0 16 water in the Group's major water-consuming plants was as high as more than 52%.Garment production 4 229 Sewage treatment The Company has established four plant wastewater treatment stations and one municipal wastewater treatment plants. The plant wastewater treatment stations adopt the A2O methods and the quality of the discharged water is below the concentration limit for indirectly discharged water specified in the Discharge Standards of Water Pollutants for Dyeing and Finishing of Textile Industry (GB4287-2012) and compliant with the requirements in the Announcement on Adjusting the Implementation Requirements for Some Indicators of GB4287-2012. The municipal wastewater treatment plant adopts a technique that integrates "hydrolysis and Orbal oxidation ditches" and has a capacity of treating approximately 120000 cubic meters of wastewater every day into water with a quality that is better than the A standard of Level 1 specified in the Discharge Standard of Pollutants for Municipal Wastewater treatment Plant (GB18918-2002).The Company adheres to water footprint tracking monitoring water consumption in both production and daily operations to control water usage and minimize waste. 66 67Chairman's Statement About the Company ESG Governance Products and Services Production Operations Energy Conservation and Environmental Protection Employee's Rights and Benefits Community Engagement Key Performance Indicators ESG Report 2024 Lu Thai Textile Co. Ltd Atmospheric pollutant management Biodiversity protection Luthai Textile is committed to biodiversity conservation and strictly complies with the Forest Law of the People's Republic of China the The Company actively conducts atmospheric pollutant management to lessen the environmental Regulations on the Implementation of the Forest Law of the People's Republic of China the Forest Logging and Regeneration Management burden brought by its production and operation to the society as much as possible. During this Measures the Regulations on the Protection of Wild Plants of the People's Republic of China the Wildlife Protection Law of the People's Republic Reporting Period in the factory-bound fugitive exhaust gas the concentration of hydrogen sulphide of China as well as the United Nations Convention on Biological Diversity and other biodiversity-related laws regulations and international was 0.005 mg/m3 that of ammonia was 0.08 mg/m3 that of particulate matter was 0.28 mg/m3 conventions.that of non-methane hydrocarbon was 1.3 mg/m3 and that of odor was 13 (dimensionless). This To protect biodiversity we assess the dependence and impact of our business operations on natural resources organize tree-planting activities is better than the discharge standard which specifies that the concentration limit for hydrogen for employees promote paperless offices and continuously work to reduce the negative impact of our operations on biodiversity. We actively sulphide is 0.06 mg/m3 that for ammonia is 1.5 mg/m3 that for particulate matter is 1.0 mg/m3 promote sustainable use of natural resources and contribute to ecological balance maintenance.that for non-methane hydrocarbon is 2.0 mg/m3 and that for odor is 16 (dimensionless).Waste management The Company temporarily stores and disposes hazardous waste that it generates in strict compliance with the Directory of National Hazardous Wastes and the Standard for Pollution Control on Hazardous Waste Storage. It manages hazardous waste in different categories separately by establishing hazardous waste storehouses and corresponding supporting facilities while it hires qualified hazardous waste disposal agencies to transfer hazardous waste and prohibits the appropriation of hazardous waste. The main hazardous waste generated in the production and operation of the Company includes waste oil waste oil barrels waste paint buckets waste detergent barrels liners contaminated by chemical dyes waste lead-acid batteries laboratory waste liquid etc.; the main non-hazardous wastes brought by the production and operation is the March 12 marked the 46th National Tree Planting Day in China. The Company's Youth League Committee organized Youth League sludge. representatives and young volunteers from various departments to participate in a tree-planting event hosted by the Zichuan District Communist Youth League Committee. Employees personally planted saplings not only adding vibrant greenery to the bright March landscape but also embodying the concept of ecological protection and harmonious coexistence through their actions.In 2024 The Company's Information Department launched the Centralized Printing and Paperless Project. In 2024 this initiative helped Company processed 36 tons of hazardous waste departments save a total of 76500 sheets of printing paper.and 11420 tons of non-hazardous waste. 68 69Employee's Rights and Benefits/ Building a Harmonious Workplace Together Employees are the driving force and innovation source of companies. Discovering the potential and stimulating the ownership spirit of employees is the key to the success of enterprises. Lu Thai Textile implements a humanistic culture centered on caring employees meeting their needs to the greatest extent possible while ensuring that employees have a healthy and safe workplace. We provide employees with a platform to show themselves and improve their abilities consolidate their knowledge and skills enrich their leisure life and assist employees in solving difficulties. We truly care for and love our employees.UN Sustainable Development GoalsChairman's Statement About the Company ESG Governance Products and Services Production Operations Energy Conservation and Environmental Protection Employee's Rights and Benefits Community Engagement Key Performance Indicators ESG Report 2024 Lu Thai Textile Co. Ltd Respect and equality Indicator (Unit) 2022 2023 2024 Luthai Textile has always adhered to the principle of equal and friendly employment. It strictly complies with the laws regulations and Employee age requirements of regulatory authorities of the countries where it operates and actively supports the international conventions including Total number of employees aged 9866 9671 9814 the International Covenant on Economic Social and Cultural Rights and the Elimination of Discrimination in respect of Employment and under 30 (person) Occupation so as to build an equal friendly occupational platform for employees. Proportion of employees aged under 43 42 41 30(%) The Company believes that talents are the basis for the operation and sustainable development of companies. As to the recruitment and Total number of employees aged retention of talents the Company adheres to the "all-inclusive" concept accepts all talents and promises not to determine employees' salary 13162 13179 14174above 30 (person) and rank based on their gender age nationality ethnicity religion color language domicile place and other personal characteristics unrelated Proportion of employees aged above 57 58 59 to work. The Company respects the rights of every employee and provides equal and free development space for every employee. 31 (%) Education background of employees Bachelor or above (person) 1400 1319 1555 Junior college (person) 4523 3726 4517 High school or below (person) 17105 17805 17916 Nationality China (%) 54 51 46 01 02 Foreign employees (%) 46 49 54 Recruitment is conducted without The Company is committed to ensuring discrimination based on gender that gender beliefs ethnicity and other race nationality or other factors. non-work-related factors do not influence Caring for female employees employees' salaries or promotions. The Company always pays attention to the rights and development of female employees and always puts special protection for female 03 employees into practice. Therefore the Company has formulated the Management Procedure for Protecting Female Employees carried out various publicity education and entertainment activities to promote the physical and mental health development of female employees enhance their confidence in overcoming the dual pressures of work and life and enable them to maintain a good state in professional competition.A fair competition mechanism is adopted for Measures taken: promotion. The performance abilities and potential of employees will be considered to The Company has refused gender discrimination and recruited females under equal conditions.Employee diversity select the best ones. The Company has ensured career development of female employees and provided broader development space for female employees.The Company has established a female employees' committee to assist female employees in solving their difficulties of life and work and safeguarding their rights and interests Indicator (Unit) 2022 2023 2024 A psychological counseling room has been established and in 2024 a total of 27 exchange and discussion sessions were Employee diversity organized for female employees.Total number of incumbent employees 23028 22850 23988 In 2024 16 training sessions were conducted for female employees with approximately 1000 participants. The training (person) primarily consisted of offline classroom sessions covering women’s health maternal and child care and mental health Total number of male employees 9736 9317 10432 awareness along with specialized training for female-oriented activities. The content was designed to meet the practical (person) needs of women making it well-received among female employees. Proportion of male employees (%) 42 41 43 Various activities such as reading writing painting paper-cutting and pastry-making were organized to enhance the Total number of female employees overall skills of female employees with prizes awarded to outstanding participants.(person) 13292 13533 13556 Maternity rest rooms were set up to provide comfortable and convenient resting spaces for expectant mothers with four Proportion of female Employees (%) 58 59 57 of these facilities recognized at the district level.In 2024 a total of 2611 married female employees underwent health check-ups with total examination costs exceeding RMB70000. 72 73Chairman's Statement About the Company ESG Governance Products and Services Production Operations Energy Conservation and Environmental Protection Employee's Rights and Benefits Community Engagement Key Performance Indicators ESG Report 2024 Lu Thai Textile Co. Ltd Mental consultation room Mom's cabin Cultural and recreational activities Series of Activities on the International Women's Day on March 8 Awareness campaigns and knowledge training Physical examination for female employees 74 75Chairman's Statement About the Company ESG Governance Products and Services Production Operations Energy Conservation and Environmental Protection Employee's Rights and Benefits Community Engagement Key Performance Indicators ESG Report 2024 Lu Thai Textile Co. Ltd Human rights and labor Complaint and Suggestion Channels Compensation and benefits □ Every year employee representatives are elected through employee elections and the Labor Union regularly holds employee representative assemblies to promote activities of the Labor The Company has established a comprehensive compensation and benefits system providing employees with basic pension insurance Union and communicate with employees medical insurance work-related injury insurance and unemployment insurance in accordance with the law. Employees are also entitled to paid □ Suggestion boxes are set up in various plants and departments of the Company to collect annual leave home leave marriage leave maternity leave work-related injury leave and other benefits in line with national standards. The employees' opinions on the Company's policies management processes and salary benefits.Company actively enhances employee communication channels by establishing and improving mechanisms such as labor unions employee The Labor Union organizes them once a month and provides feedback to the Company's senior representative meetings and grievance procedures allowing employees to voice their concerns and suggestions regarding compensation and leadership to discuss improvement plans benefits ensuring the effective protection of their rights. □ Tel.: (86) 533-5261634 SMS: 18560301315 Indicator (Unit) 2022 2023 2024 Email: gonghui@lttc.com.cn Employment contract signing rate (%) 100 100 100 □ Chairman Reception Day on the 25th of each month—direct face-to-face communication with employees.Social insurance coverage (%) 100 100 100 Signing rate of collective bargaining 100 100 100 agreement (%) Luthai Textile’s compensation system consists of hourly wage and piece-rate wage structures with salaries balanced according to job roles.Based on this the Company continuously improves salary structures and refines performance standards to maximize employee earnings. Occupational health and safety Equity incentive program The Company pays high attention to its employees' occupational health and safety so it has established and improved the management system of occupational health and safety implemented risk control measures and actively inspected and responded to occupational disease hazards To further establish and enhance the Company’s operational mechanisms improve the incentive and restraint system fully mobilize so as to ensure that each Luthaier's health and safety are free from impairments.employees' enthusiasm and inspire the motivation and creativity of the Company’s and subsidiaries’ management teams and core technical (business) personnel Luthai Textile has implemented two phases of equity incentive plans for directors senior management middle management and core technical (business) personnel.The 2011 Restricted Stock Incentive Plan granted restricted stock to 344 participants totaling 14.09 million shares. This Safety first prevention-oriented and Prioritize safety before production; no production comprehensive management. without safety. Strictly adhere to operating procedures to prevent safety accidents.included 16 directors and senior executives (1.6 million shares) 161 core management personnel (9.64 million shares) Luthai EHS and 167 technical and business backbone employees (2.85 million shares). This plan was fully implemented in 2014.Philosophy Comply with environmental laws and standards and The 2021 Restricted Stock Incentive Plan initially granted restricted stock to 750 participants including 11 directors Source management and green manufacturing. fulfill corporate social responsibility in environmental Emphasize prevention and a combination of protection. Ensure management practices align (excluding independent directors) and senior executives and 739 middle management and core personnel. An prevention and control measures. with compliance requirements for a safe working environment.additional reserved grant was issued to 343 participants including seven senior executives and 336 middle management and core personnel. The initial and reserved grants under this plan amounted to 24285000 shares and 5838000 shares respectively. This plan was fully implemented in 2024.Measures taken Before going to their posts new employees have all undergone pre-job physical examinations to avoid personnel with occupational Human rights protection contraindications from working in the relevant posts; employees have undergone on-the-job physical examinations and their work will be allocated according to the results; and when leaving their posts employees have undergone post-job occupational physical examinations In interview process the Company actively examines identity cards diplomas etc. to prevent child laborers or underage workers who to ensure that employees leave their posts in healthy condition.have not finished legal compulsory education from being recruited by mistakes.The Company has conducted regular occupational health education and training for employees and established occupational health The Company is committed to putting an end to all forced or compulsory labor. Employees are free to leave the workplace after completing surveillance archives for employees realizing the standardized management featuring "one archive for one person".the work needed to be done within standard working time. The declaration system must be implemented for overtime work to ensure that overtime work is a voluntary act of employees. Conduct annual occupational hazard assessments in key areas with immediate rectification for any non-compliance.In the course of production and operation cooperating with the local government or third-party institutions the Company actively carries The Company posts warning signs and occupational hazard notification cards in prominent positions in the workshop.out due diligence on human rights protection. The Company regularly maintains and repairs occupational hazard protection facilities to ensure their integrity and effectiveness.To ensure that the opinions of employees on the Company's management are fully conveyed and to encourage their participation the The Company conducts emergency rescue drills once or twice a year for relevant departments and workshops to ensure timely handling Company's Labor Union collects employee opinions and suggestions through various channels. of hazards. 76 77Chairman's Statement About the Company ESG Governance Products and Services Production Operations Energy Conservation and Environmental Protection Employee's Rights and Benefits Community Engagement Key Performance Indicators ESG Report 2024 Lu Thai Textile Co. Ltd Provide employees exposed to occupational hazards with standardized and effective personal protective equipment (PPE) ensuring regular procurement distribution and supervision of PPE usage to prevent occupational diseases. Install washing stations in areas Occupational handling corrosive substances such as acids and alkalis and upgrade occupational disease prevention facilities through maintenance and Hazardous Factors Countermeasures improvements.Organize first aid and heatstroke prevention training to enhance employees' emergency response skills. In 2024 the Company conducted * Take airtight ventilating and dedusting measures for cotton blending machines and scutchers in pre-spun process. 22 first aid training sessions and 21 heatstroke prevention training sessions. * Adopt the approach of wet sweeping for the workshop to take away the dust The Company popularizes health care knowledge each month and provides first-aid medical kits for employees with first-aid medicine Dust accumulated on the surface as much as possible supplemented for 271 times on average per month in 2024. * Regularly clean the air duct * Distribute dust masks that conform to international specifications The Company distributes heatstroke prevention drugs in summer for convenient use by employees.* Distribute items for heatstroke prevention for high-temperature posts in the High temperature workshop and high humidity * Add Auricularia auricula and pig blood curd to workshop meals to enhance employees' ability to defend against occupational diseases * Adjust the air supply and exhaust volume in the workshop Noise and vibration * Equip employees with disposable noise-reducing earplugs and replace them regularly Talent management Talent acquisition Luthai scientifically forecasts talent demand based on the Company’s strategic positioning business development and current talent pool enhancing talent selection methods and expanding recruitment efforts. By utilizing multiple recruitment channels the Company attracts professionals from various fields ensuring a strategic talent reserve to maintain long-term competitiveness and foster a corporate environment where employees can fully utilize their skills and potential. At the same time the Company actively engages in international talent recruitment First Aid Training in the United States Italy Japan Vietnam Cambodia and Myanmar to support its overseas business expansion.Additionally to promote internal talent mobility and encourage diverse career development employees can apply for internal job postings.Those who meet job requirements and pass interviews can transfer positions following the Company's recruitment procedures. Employees and departments can also submit internal transfer applications based on operational needs.This year to attract outstanding graduates the Human Resources Department organized a Summer Camp Program for university students.Students from Jiangnan University Dalian Polytechnic University Qingdao University and other institutions were invited for internships providing them with an in-depth understanding of the Company. For newly hired university graduates the Company conducted onboarding and development training and regularly organized welcome banquets and discussion forums to enhance their sense of belonging and improve talent retention rates.Facility Setup Personal Protective Equipment Summer camp program 78 79Chairman's Statement About the Company ESG Governance Products and Services Production Operations Energy Conservation and Environmental Protection Employee's Rights and Benefits Community Engagement Key Performance Indicators ESG Report 2024 Lu Thai Textile Co. Ltd Development of reserve talent pool The Company has formulated and implemented the 2022-2026 Key Position Recruitment Plan establishing the Three-Year Career Development Plan for Undergraduate and Above Employees of Luthai Group for newly recruited key position personnel. Additionally each department has been tasked with developing the Secondary Talent Pool Management Measures to achieve position-specific recruitment and targeted training for key roles. In 2024 totally 275 key post personnel were recruited and totally 148 second-level talents were reserved for all departments.Excellence Plan Senior managerial personnel Elite Plan Research and study engineering Middle-level managerial personnel Flight Plan Re-building engineering System management Grass-roots managerial personnel Managing operations Set-sail Plan Incubation engineering Department manager Onboarding personnel Managing the department ·Performance-oriented Cultivation engineering Professional backbone ·Cross-department coordination Managing others This year's new employee ·Maximizing the Company's benefits Self-management ·Considering both individual and ·Giving strategic support team Over five years Training for section chiefs and group leaders Customer-led SST project training for the Company's management personnel ·Basic skills training ·Individual's success and team's success Three to five years External personnel training Within a year One to two years In 2024 the Company organized two enterprise internship programs for teachers held during winter and summer breaks. A total of nine vocational teachers from seven regions across the country participated including eight teachers in a ten-day skills training program and one teacher in a 30-day on-the-job training program. The participating teachers specialized in textile design fashion design and technology textile engineering and modern textile technology.Employee training and development Luthai Vocational Training School is dedicated to serving regional economic and social development aligning with market demand and focusing on employment promotion and industry development needs. The school is committed to cultivating skilled professionals and provides training in employment skills skill enhancement and competency development for corporate employees unemployed individuals rural migrant workers and university students.Internal employee training The Company offers professional training courses in both vocational skills and management skills. A total of 23988 employees took part in the Teacher enterprise internship vocational training in 2024 with a coverage rate of 100%.Unemployed worker training Indicator (Unit) 2022 2023 2024 To help local unemployed individuals secure better job opportunities Luthai Vocational Training School provides dual-assurance training Training participants (person) 23028 22850 23988 programs including specialized vocational skills training and job-specific skills enhancement training. After training participants take certification exams and those who pass receive certificates. In 2024 a total of 178 unemployed individuals received training with 45 earning Average training hour (hour) 56 56 56 Specialized Vocational Ability Certificates and 58 obtaining Skill Level Certificates.Training coverage rate (%) 100% 100% 100% Onboarding training Tea Art Training Electrician Training Pastry Training 80 81Chairman's Statement About the Company ESG Governance Products and Services Production Operations Energy Conservation and Environmental Protection Employee's Rights and Benefits Community Engagement Key Performance Indicators ESG Report 2024 Lu Thai Textile Co. Ltd Since 2003 the Company has established an internal professional title evaluation appointment and allowance system actively promoting Training needs and satisfaction survey the values of honoring labor valuing skills and fostering creativity. This has created a corporate culture that emphasizes skill development This year the Company has placed great emphasis on talent training. At the beginning of the year a survey questionnaire was distributed to encouraging employees to learn and master professional skills. The Company has taken a leading position in the industry in cultivating and accurately identify employee training needs covering management skills professional techniques and logistical services. The training sessions evaluating skilled talent. The internal professional title evaluation and appointment system has become a key platform for implementing the attracted over 20000 participants. Additionally by implementing a self-evaluation mechanism the Company effectively integrated internal and Company's philosophy of valuing nurturing and utilizing talent.external training enhancing employee knowledge and skills. The training satisfaction rate exceeded 95% significantly improving employee capabilities and empowering high-quality corporate development thereby contributing to the establishment of a high-quality human resource Qualification support strategic system.This year 16 employees were encouraged to take the Certified Safety Engineer Examination with two employees passing and obtaining certification.Multi-dimensional promotion mechanism Promoting skills development The Company implements horizontal and vertical dual channel development (job promotion and cross-job promotion) with promotion in the Luthai Textile actively carries out various skill competitions and encourages its employees to promote their professional and technical directions of management line and professional lines (the former is achieved through job changes while the latter is achieved through internal levels through competitions and to define their vocational objectives and orientations; the Company also encourages its employees to take professional title appraisal). Targeted training is carried out based on personnel characteristics and personal preferences achieving multi- vocational qualification examinations to transfer what their have learned into actual output. Luthai also constantly facilitates the development dimensional development space for employees. of its employees toward high-grade precision advanced and professional direction and drives the Company to stride toward a learning- oriented skill-oriented and innovation-oriented world-class enterprise.Promotion Plan for Production Promotion Plan for Department Frontline Positions Positions The Company’s Thirty-fourth Session of Technical Demonstration and Competition Plant management personnel Department management personnel Group leader Reserve personnel Reserve talents Sub-group leader Training Excellent employee Excellent employee Versatile employee Department employee Skilled worker Frontline employees Competition In 2024 the Company appointed two Chief Technicians 13 Senior Technicians and 82 Technicians; 399 Senior Skilled Workers 520 Intermediate Skilled Workers 596 Junior Level 2 Skilled Workers and 769 Junior Level 1 Skilled Workers. During their tenure they receive a monthly allowance of RMB2500 RMB1500 RMB1000 RMB500 RMB300 RMB200 and RMB100 respectively.Award Ceremony The Company appointed four Senior Engineers five First-Class Engineers 29 Engineers 365 Assistant Engineers and 193 Technicians. During their tenure they receive a monthly allowance of RMB1500 RMB1000 RMB800 RMB400 and RMB200 respectively.From April to July 2024 the Company held the thirty-fourth session of activity of technical demonstration and competition. A total of 47 The Company appointed three First-Class Designers three Designers 21 Assistant Designers companies and 8150 personnel covering 597 types of work in total took part in the competition. Through the processes of publicity and Appraisal and appointment and three Design Assistants. During their tenure they receive a monthly allowance of mobilization training and learning post drills and preliminary and final competitions finally there were 30 champions of single skills of of professional titles RMB1000 RMB800 RMB400 and RMB200 respectively. departments 3230 winners of technical demonstrations and competitions 636 "excellent versatile workers" and 97 "excellent teams" and they have all obtained honor certificates bonus and presents. Technical demonstrations and competitions have aroused employees' enthusiasm to learn technologies dig into professions practice skills and work as artisans through training and learning post drills and skill competition hence achieving the objectives of promoting production safety management benefits and development through competitions. 82 83Chairman's Statement About the Company ESG Governance Products and Services Production Operations Energy Conservation and Environmental Protection Employee's Rights and Benefits Community Engagement Key Performance Indicators ESG Report 2024 Lu Thai Textile Co. Ltd [Case] The Company’s Activity of Evaluating the Excellent Emphasis on employees' living and dining conditions The Company launched the activity of Luthai has more than 20000 employees. The Company attaches great importance to the quality and services of employees' board and lodging evaluating the excellent in order to further and regularly carries out satisfaction surveys of employees' board and lodging each year to constantly improve logistics management and promote the excellent corporate culture services to strive to provide employees with nutritious diets and convenient living conditions.of the Company commend outstanding collectives and employees who performed outstandingly in the past year and motivate everyone to innovate their performance Continuously enhance employees' job skills by adhering to the principles of "standardization and regulation" in achieve new breakthroughs and make food preparation. Advocate for quality awareness among all employees starting with basic dishes optimizing new contributions in the next year. A cooking methods mastering heat control ensuring precise seasoning and maintaining stable food quality.total of 11313 participants took part in the evaluation process. Through a Develop on-duty meal menus through a combination of intelligent planning and employee surveys ensuring the graded assessment the final selections accumulation of raw data to guarantee menu diversity balance and seasonality.included 2781 "Advanced Production (Work) Individuals" 112 "Company Model Display QR codes on dining tables for feedback collection utilizing multiple channels to gather opinions and Employees" nine "Labor Models" and 41 "Advanced Collectives." The total bonus suggestions and continuously improving food quality.awarded amounted to RMB2.97 million. Promote the upgrade of smart dining facilities enabling diversified intelligent management methods such as card QR code and facial recognition payments self-service card replenishment intelligent food sampling morning health checks and AI monitoring improving restaurant attendance rates and convenience.In 2024 the meals amid shift were upgraded by including one fried product per meal to enrich the diets of Benefits and care frontline employees.We have always believed that "employees are the most valuable resource of an enterprise" and only with a stable workforce can a company The Company compiles a menu according to seasonal changes to ensure a cool taste in summer and hot soup achieve better performance. Therefore we continuously enhance employee satisfaction and sense of belonging striving to meet various and dishes in winter. In summer meals amid shift are added with seasonal fruits and mung bean soup to prevent employee needs to the greatest extent possible. employees from heatstroke and reduce heat from employees.We provide our employees with a wide range of non-monetary benefits such as occupational health check-ups employee wellness check-ups Establish a provincial-level healthy enterprise to ensure food safety create a healthy dining environment and shuttle services travel allowances and company dormitories. Additionally we have established special benefits to accommodate employees continuously promote health awareness by advocating "low salt low sugar and low fat" prioritizing health.with specific needs such as nursing rooms specialized health check-ups for female employees and hardship assistance funds. Details are provided in the table below: To demonstrate the Company's humanistic care a birthday cake is made and provided for employees free of charge. Launch a cake ordering and sales service to better serve employees including large-scale and customized Work Support Health Housing Dining Leisure Activities cake production.·Travel allowance ·Employee wellness ·Company dormitories ·Employee cafeteria ·Employee activity center In 2024 employee dining satisfaction reached 82.69%.·Communication check-up ·Government talent ·Free on-duty meals ·Library allowance ·Free heat prevention apartments ·Convenient pastries and ·Band ·Shift allowance medicine ·Housing subsidy fruits ·Team-building activities ·Overseas allowance ·Cooling fruits ·Social events ·Shuttle service ·Convenient medical rooms Protection for Female Holidays Employees Talent Support Assistance ·Nursing room ·Traditional festival ·Academic subsidy for ·College assistance for ·Specialized health introduced talents gifts employees' children check-ups for women ·Talent skill ·Annual party lottery ·Consolation gifts for ·Special training for improvement award ·Large-scale prize- female employees ·Postdoctoral employees in hardship winning activities ·Psychological workstations ·Serious illness counseling room for ·Equity incentives for assistance fund key employees female employees In terms of statutory benefits we provide employees with statutory holidays rest days sick leave work injury leave marriage and bereavement leave maternity leave paternity leave breastfeeding leave and annual leave in accordance with national or local regulations. Additionally we contribute to employees' social insurance (including basic pension insurance medical insurance unemployment insurance work injury insurance) and housing provident fund. Diverse Dishes 84 85Chairman's Statement About the Company ESG Governance Products and Services Production Operations Energy Conservation and Environmental Protection Employee's Rights and Benefits Community Engagement Key Performance Indicators ESG Report 2024 Lu Thai Textile Co. Ltd Employee apartments Supermarket Pastries Employee assistance and support Golden Autumn Scholarship The "Golden Autumn Scholarship" program is an initiative that upholds traditional virtues fosters a spirit of generosity and strengthens family bonds. It is a demonstration of our care and support for employees as well as a program that contributes to the Company's development while reflecting employees' aspirations. This initiative has become an important platform for Luthai Group to carry out meaningful actions for employees by addressing their needs solving difficulties and delivering warmth. This year 234 employees' children achieved outstanding academic results and were admitted to universities across the country. Their success is not only a source of pride for their families but also Scholarship Awarding Ceremony of the Golden Autumn Scholarship Program Distribution of Cakes to Employees Relief of Employees in Difficulties Implementing the people-foremost policy and caring for employees have always been an important part of the Company's corporate culture.Air conditioners and free Wi-Fi are available in all dormitories in the Company The grass-roots branches of the Company visit and comfort employees every year go deep into the front line of production and understand the Each floor in the apartment is equipped with chess and card room television hall and smoking room living condition of employees through multiple channels. They also take the responsibility of "the first insider" actively find out the state of mind of employees and take the initiative in solving their problems. The Company has established a bailout foundation and distributes assistance Each building in the apartment areas is equipped with a fully automatic coin-operated washing machine funds to employees with family difficulties every year hence helping employees to go through their difficult pass. In 2024 the Company’s labor 24-hour unmanned supermarkets are set up in the apartment areas to provide employees with conditions of union provided financial assistance to 86 employees in need distributing a total of RMB214000 in relief funds. convenient and fast shopping The apartments provide the services of cleaning working clothes and articles of bedding free of charge and set up locations for replacing articles of bedding to achieve that such articles can be replaced whenever they are dirty Free drying and storage of bedding are also provided for employees during seasonal changes Each park area is equipped with bathing facilities so that employees can have baths conveniently 84 disinfectant is sprayed on dormitories and bathrooms every day to ensure a healthy living environment Independent shower rooms in university student apartments Distribution of Relief Funds 86 87Chairman's Statement About the Company ESG Governance Products and Services Production Operations Energy Conservation and Environmental Protection Employee's Rights and Benefits Community Engagement Key Performance Indicators ESG Report 2024 Lu Thai Textile Co. Ltd Summer-vacation daycare program To address the challenge of childcare during the summer break enhance employees' sense of well-being and ensure a safe enjoyable and meaningful summer for their children the Company organized a summer daycare program from July 12 to August 24 2024. A total of over 260 employees' children participated. The daycare program was conducted in two sessions each lasting 20 days and featured four themed weeks: "Creativity & Craftsmanship" "Traditional Chinese Culture" "Labor & Work Ethics" and "Safety & Protection." With a diverse and engaging curriculum the program incorporated activities such as recitation painting calligraphy handicrafts film appreciation and singing helping children enhance their imagination creativity and social skills through an edutainment approach.Concert Performance Scene [Case] The 37th Anniversary Celebration – Series of Cultural and Sports Activities On June 1 2024 the "Forging Ahead on a New Journey Uniting Strength for a New Chapter" Luthai Group 37th Anniversary Celebration Series of Cultural and Sports Activities was held at Luthai Cultural Park. The Chairman of the Company's labor union attended the event and presented awards to the winning teams.The event featured activities such as group rope skipping tug-of-war and mixed basketball shooting. Each team carefully prepared worked closely together maintained uniform coordination and encouraged one another demonstrating the positive united and collaborative spirit of Luthai employees in the new era. The event was filled with enthusiasm and joy celebrating the 37th anniversary of Luthai Group.Daily Activities and Performance of the Summer Daycare Program Enriching employees' cultural and recreational life The Company regularly organizes various cultural sporting and recreational activities to enrich employees' spare-time life boost employees' mental outlook and lead employees to achieving the balance between work and life hence promoting employees' sense of belonging to the enterprise and enhancing the Company's cohesion.[Case] "Tribute to Strivers A New Symphony" – 2024 New Year Concert On February 23 2024 the "Tribute to Strivers A New Symphony" Luthai Group 2024 New Year Concert was grandly held at Luthai Academy.The concert featured a full performance and accompaniment by the Luthai Textile Orchestra.The event was divided into three chapters with the first chapter "Song of Struggle" featuring performances such as Chinese Dragon Everything Anniversary Celebration Activities Goes Well Three Hundred and Sixty-Five Miles and the orchestral ensemble Festive Dance. These performances conveyed the dedication and perseverance behind every achievement amid a complex and ever-changing external environment highlighting the extraordinary Luthai spirit and strength. 88 89Chairman's Statement About the Company ESG Governance Products and Services Production Operations Energy Conservation and Environmental Protection Employee's Rights and Benefits Community Engagement Key Performance Indicators ESG Report 2024 Lu Thai Textile Co. Ltd [Case] The 26th Session of Employee Basketball League In May 2024 the 26th Luthai Group Employee Basketball League was held. Along with over 100 referees athletes and employee representatives.The competition was divided into three stages: group elimination round-robin and finals. On the court teams from various departments competed fiercely under the principle of "friendship first competition second." Players ran collided and jumped with full concentration their movements flashing under the sunlight earning rounds of applause from the audience. After three days and 38 intense matches among 12 teams the championship game took place. In the end the Lufeng Weaving & Dyeing Team won the championship while the Security Department Team secured second place.Swimming Competition Scene [Case] The 11th Employee Choir Competition in Celebration of the 75th Anniversary of the Founding of the People's Republic of China On the evening of September 25 2024 the Luthai Group’s 11th Employee Choir Competition with the theme of "United in Strength Advancing with Determination" celebrating the 75th anniversary of the founding of the People's Republic of China was held at Luthai Cultural Park.The event was attended by distinguished guests including a member of the Party Committee and Vice President of Inner Mongolia University of Technology the Dean of the School of Light Industry and Textiles the Party Secretary and Dean of the Luthai Textile & Apparel College at Shandong University of Technology the Secretary and Director of the Standing Committee of the People's Congress of Zichuan District the Basketball Match Scene Secretary and Chairman of the Zichuan District CPPCC the Principal of Zibo School of Technology as well as Company leaders such as the Party Secretary Chairman and President. Nearly a thousand employees were present to watch the competition.[Case] The 24th Session of Employee Soccer League This year's choir competition featured 13 teams and over 2000 employees who sang with passion expressing their patriotism and celebrating the national spirit through music. With their voices dedication and perseverance Luthai employees paid tribute to their motherland.In April 2024 the Company organized the 24th Employee Football League with over 150 participants including referees athletes and employee representatives. A total of 11 teams competed in the tournament which lasted seven days and included 29 matches progressing through group elimination rounds semifinals and the final.On the field players worked together fiercely contested the ball and displayed boundless energy. They ran with determination passed skillfully and executed precise shots their agile movements weaving across the green turf. Their outstanding techniques and indomitable fighting spirit were on full display. In the end the Administration Team won the championship the Weaving Production Department Team secured second place and Liu Mingming from the Weaving Production Department was awarded the tournament’s top scorer.Football Match Scene Choir Performance Scene [Case] Swimming Competition [Case] Youth Employee Social Event On August 24 2024 Luthai Group hosted the "Swim Beyond Limits Strive for Excellence" 2024 Swimming Competition. The event featured To create a broader platform for socializing and communication while enhancing the sense of happiness and belonging among young various categories including Men's 50 m Men's 100 m Men's 4 × 50 m Relay Women's 50 m Parent-Child 50 m "Non-Swimmer" Swimming employees the Company organized a youth employee social event at Banyang Villa on May 18. More than 80 young employees from various and Parent-Child Interaction. Participants showcased their skills with different swimming styles competing fiercely in the pool demonstrating departments participated in the event.the indomitable spirit and determined pursuit of excellence that define Luthai employees.The event featured a series of fun and engaging interactive games including "Sweet Surprise" "Hearts Aligned" "Crossfire Challenge" "True or False" and "Unconventional Thinking." Led by the hosts participants worked closely together supported one another and confidently showcased themselves. Amid laughter and joy they formed closer bonds deepened mutual understanding and shared an enjoyable and unforgettable experience filled with happiness and cherished friendships. 90 91Chairman's Statement About the Company ESG Governance Products and Services Production Operations Energy Conservation and Environmental Protection Employee's Rights and Benefits Community Engagement Key Performance Indicators ESG Report 2024 Lu Thai Textile Co. Ltd The survey analysis determined that the overall satisfaction rate of the Group was 88.4% reflecting a 0.2% increase compared to the previous year. Feedback on employee satisfaction levels was provided to each department and 69 departmental employee satisfaction improvement reports were compiled and distributed to address and rectify identified satisfaction issues.Youth Employee Social Event Scene Overall Satisfaction [Case] Series of Cultural and Sports Activities to Celebrate the New Year Linear trend (overall satisfaction) On December 27 2024 Luthai Group launched the 2025 New Year Sports and Cultural Activities with the theme of "Fitness for the New Year Striving for the Future". The event lasted three days and attracted over 300 participants. Competitions included table tennis badminton billiards card games such as Guandan Shengji and Gouji as well as Chinese chess. Through these activities employees strengthened their bodies relaxed their minds and brought new energy to the Company's development.Indoor Activity Scene Overseas employees' learning in China Employee satisfaction survey The Company organized overseas employees to visit domestic factories for learning and training. To accommodate their living habits bidet sprayers were installed in restrooms and the cafeteria provided specially prepared light dishes suited to their tastes. To ensure overseas employees felt the warmth and hospitality of Luthai and China leisure activities were arranged during their rest periods including sightseeing To enhance employee satisfaction and strengthen corporate cohesion the Company conducted an employee satisfaction survey in 2024. The trips and invitations to participate in anniversary celebrations and performances.survey focused on six key dimensions: overall recognition work environment direct supervisors team collaboration learning and development and compensation and benefits. A total of 8900 valid responses were collected accounting for 86% of all surveyed employees.Survey Analysis Valid questionnaires A total of 9255 questionnaires were collected in this satisfaction survey After excluding invalid questionnaires 8900 valid responses were finalized representing 96% of the total collected questionnaires.Accommodation and dining Invalid questionnaires 92 93Chairman's Statement About the Company ESG Governance Products and Services Production Operations Energy Conservation and Environmental Protection Employee's Rights and Benefits Community Engagement Key Performance Indicators ESG Report 2024 Lu Thai Textile Co. Ltd Holiday excursions Mid-Autumn family banquet Subsidies and prize distribution Gathering & dining Anniversary celebration activities 94 95Community Engagement/ Striving to Be an Outstanding Corporate Citizen In the face of a complex and severe external environment Lu Thai assesses the situation makes unified decisions and overcomes difficulties. The Company assists the national education and community public welfare undertakings and provides strong impetus for local economic development.UN Sustainable Development GoalsChairman's Statement About the Company ESG Governance Products and Services Production Operations Energy Conservation and Environmental Protection Employee's Rights and Benefits Community Engagement Key Performance Indicators ESG Report 2024 Lu Thai Textile Co. Ltd Supporting education initiatives crucial step forward in their school-enterprise collaboration and the beginning of a new chapter.Education is a long-term endeavor that benefits future generations. Over the years Lu Thai has actively contributed to education support According to the agreement Lu Thai and Shandong Vocational Institute of Fashion Technology programs investing a total of over RMB45 million in educational assistance. The Company has established cooperative education programs will co-establish the "Lu Thai Textile & Apparel Industry Academy" to further develop textile with more than 20 vocational and higher education institutions demonstrating its strong commitment to social responsibility through concrete and apparel programs innovate talent cultivation models and promote the integration of actions. Looking ahead Lu Thai will continue to stay connected to its hometown support the development of education strengthen school- education and industry. This initiative will lay a solid foundation for international development enterprise cooperation and drive new achievements in educational collaboration. while providing strong support for the transformation upgrading and globalization of the textile and apparel industry.【Case】Inauguration of the "Peking University Ideological and Political Practice Course Education Base" Welfare and charity actions The Company has always adhered to its original mission actively participated in public welfare and charity activities and continuously donated to public welfare and charity projects to share the achievements of enterprise development with society through practical actions.【Case】RMB100000 Donation to Hongshan Primary School Accumulating a Total of RMB2.2 Million Unveiling Ceremony Scene On January 9 2024 the unveiling ceremony for the "Peking University Ideological and Political Practice Course Education Base" jointly On July 6 2024 Lu Thai Group held a donation ceremony established by the School of International Studies at Peking University and Lu Thai Textile Co. Ltd. was held at the Company. at Hongshan Primary School contributing RMB100000 bringing its cumulative donations to the school to RMB2.2 During the ceremony Chairman Liu Zibin stated that the collaboration between Lu Thai and Peking University's School of International million. At the ceremony Chairman Liu Zibin expressed the Studies would foster mutual promotion and integration between ideological and political practice courses and corporate culture Company's hope that this donation would help improve generating new insights and opportunities. Lu Thai will take this initiative as an opportunity to further strengthen its partnership with the school's teaching conditions enhance education Peking University jointly explore new models and pathways for school-enterprise cooperation and strive to provide high-quality quality and create a better learning environment for educational resources and practical opportunities for outstanding students achieving a win-win situation for the university the students.enterprise and the students.Donation Ceremony Scene 【Case】Donation to the "Lu Thai Textile" Education Fund and 2024 "Lu Thai Textile" Scholarship Awards at 【Case】Lu Thai Cultural Park’s Free Public Zoo Shandong University of Technology In the popular internet-famous city of Zibo there is a well-known attraction—Lu Thai Cultural Park located less than two kilometers from the former residence of Pu Songling the world-renowned master of short stories. Within the park lies a zoo a public welfare facility operated by a private enterprise and open to the public free of charge all year round. Visitors can enjoy the zoo daily much like visiting a familiar home.This private enterprise is Lu Thai Group which invests over RMB3 million annually in maintaining the zoo. Today Lu Thai Cultural Park has become a popular fitness and leisure destination for local residents receiving widespread positive feedback from the community.【Case】Chairman Liu Zibin' s Visit to Centenarians on the Eve of the Double Ninth Festival Ceremony Scene The Double Ninth Festival is set to show respect to the elderly.On the occasion of this festival Chairman Liu Zibin also the Party On June 20 2024 the donation ceremony for the "Lu Thai Textile" Education Fund and the distribution of the 2024 "Lu Thai Textile" Secretary and President of the Company visited centenarians Scholarship were held at Shandong University of Technology. Chairman Liu Zibin represented the Company in donating the education across the district extending his holiday greetings and best fund and personally awarded scholarships to the honored students. wishes.Since 2006 Chairman Liu Zibin and his family have been donating to centenarians in the district for 19 consecutive years. Starting 【Case】Strategic Cooperation Agreement Signing and Unveiling Ceremony of the "Lu Thai Textile & Apparel Industry Academy" with Shandong Vocational College of Clothing Technology in 2022 the donation amount was increased from RMB1 million to RMB 2million annually bringing the total donation to RMB22 On December 10 Lu Thai Group and Shandong Vocational Institute of Fashion Technology held a strategic cooperation agreement million. This philanthropic effort has received widespread signing ceremony and the unveiling ceremony for the jointly established "Lu Thai Textile & Apparel Industry Academy." During the recognition and praise from various sectors of society.ceremony Chairman Liu Zibin delivered a speech emphasizing that this signing marks a milestone event for both parties signifying a crucial step forward in their school-enterprise collaboration and the beginning of a new chapter. Chairman Liu Zibin Visiting and Honoring Elderly Residents 98 99Chairman's Statement About the Company ESG Governance Products and Services Production Operations Energy Conservation and Environmental Protection Employee's Rights and Benefits Community Engagement Key Performance Indicators ESG Report 2024 Lu Thai Textile Co. Ltd Greenhouse gas emissions Key Performance Indicators Indicator (Unit) 2022 2023 2024 Mobile sources emissions (tons of carbon dioxide 808 778 771 Economic performance equivalent) Stationary source emissions (tons of carbon dioxide equivalent) 12771 10520 10859 Indicator (Unit) 2022 2023 2024 Category 1 emissions (tons of carbon dioxide 13579 11298 11630 equivalent) Operating revenue (RMB’00000000) 69.3868.01 59.4671.51 60.9512.38 Consumption of purchased power (tons of carbon 375819 331445 163301dioxide equivalent) Payments to contractors and service Consumption of purchased heat (tons of carbon 145314 121992 127643 providers(RMB’00000000) 3.18 4.72 2.61 dioxide equivalent) Category 2 emissions (tons of carbon dioxide 521133 453437 290944 Total employee remuneration (including compensation equivalent) 16.4916.9015.1449.2716.0174.41 and benefits) (RMB’00000000) Total (tons of carbon dioxide equivalent) 534712 464735 302574 Payments to capital providers (RMB’00000000) 1.66 1.85 3.32 Energy consumption density Payments to the government (RMB’00000000) 5.07 6.5 3.723.69 3.553.27 Indicator (Unit) 2022 2023 2024 Retained economic value (RMB’00000000) 9.12 3.10 1.97 Greenhouse Gas Emission Intensity (tCO2e/Million Revenue) 79.7 51.1 49.9 Total energy emission density (tons of standard coal per Environmental performance million revenue) 13.5 13.1 12.9 Data related to wastewater and sewage Human resources Indicator (Unit) 2022 2023 2024 Protection of employee rights and interests COD (Chemical Oxygen Demand) in discharged wastewater 395 283 248 (ton) Indicator (Unit) 2022 2023 2024 Ammonia nitrogen content in discharged wastewater (ton) 7 3 3 Employment contract signing rate (%) 100 100 100 Social insurance coverage (%) 100 100 100 Industrial wastewater discharge (10000 cubic meters) 387 311 291 Signing rate of collective bargaining agreement (%) 100 100 100 Number of female employees with parental leave during the year (person) 317 672 796Air pollutant emissions Number of male employees with parental leave during the year (person) 103 287 182 Indicator (Unit) 2022 2023 2024 Employee diversity Sulfur dioxide in emitted exhaust gas (ton) 3 1 0.2 Nitrogen oxides in emitted exhaust gas (ton) 6 3 0.5 Indicator (Unit) 2022 2023 2024 Employee diversity Waste discharge Total number of incumbent employees (person) 23028 22850 23988 Total number of male employees (person) 9736 9317 10432 Indicator (Unit) 2022 2023 2024 Proportion of male employees (%) 42 41 43 Hazardous waste generation (ton) 79 41 36 Total number of female employees (person) 13292 13533 13556 Non-hazardous waste generation (sludge) (ton) 14320 12462 11420 Proportion of female Employees (%) 58 59 57 100 101Chairman's Statement About the Company ESG Governance Products and Services Production Operations Energy Conservation and Environmental Protection Employee's Rights and Benefits Community Engagement Key Performance Indicators ESG Report 2024 Lu Thai Textile Co. Ltd Indicator (Unit) 2022 2023 2024 Reader Feedback Employee age Total number of employees aged under 30 (person) 9866 9671 9814 Dear readers: Proportion of employees aged under 30 (%) 43 42 41 Greetings! Thank you for reading this Report. In order to keep improving report preparation we want to hear your Total number of employees aged above 30 (person) 13162 13179 14174 opinions and suggestions. Please help us by telling us your answers to the questions in the feedback sheet via one of the Proportion of employees aged above 31 (%) 57 58 59 methods listed below: Mail address: 81 Songling East Road Zichuan District Zibo City Shandong Province Education background of employees Tel: 0533-5188888 Bachelor or above (person) 1400 1319 1555 Your information Junior college (person) 4523 3726 4517 Name: Institution that you work for: Position: Tel: High school or below (person) 17105 17805 17916 Fax: Email: Nationality China (%) 54 51 46 Choice questions (Please mark √ in the proper box) Foreign employees (%) 46 49 54 Neither Very Reasonably Not really Very Questio good nor good good good bad Employee turnover bad This report comprehensively and accurately reflects the Indicator (Unit) 2022 2023 2024 significant impact of Lu Thai Textile on the economy society and environment Total number of new employees (person) 7313 3338 6648 The report's response to and disclosure of stakeholder Employee turnover rate 21% 13% 20% concerns The information indicators and data disclosed in this report are clear accurate and complete Employee training The readability of this report namely the logical thread content design language and layout design of the report Indicator (Unit) 2022 2023 2024 language and layout design of the report Training participants (person) 23028 22850 23988 Open-ended questions Average training hour (hour) 56 56 56 1. What aspect of this report do you find most satisfying Training coverage rate (%) 100% 100% 100% Scan the QR code to provide feedback to us. 2.What else do you think you need to know that is not reflected in this report 3.What advice do you have for our future preparation of ESG reports 102103