Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced energy consumption by 1760 MWh and 527 MWh in Shandong and Changzhou Industrial Parks respectively through geothermal heat pumps, saving 40% energy compared to other central air-conditioning systems.
• Further reduced energy consumption by 125 MWh in Shandong Industrial Park through breeze-spraying systems.
• Saved 10-15% electricity consumption for cooling in Changzhou Industrial Park through motorised curtains and outdoor shading facilities.
• Saved 50% energy used for air conditioning through material use for building facades.
• Annual energy savings of 795 MWh through utilizing natural light.
• Annual energy savings of 141 MWh through solar-powered and LED outdoor lights.
• Annual energy savings of 5 MWh through infrared sensors for controlling indoor lights.
• Annual energy savings of 65 MWh through LED highbay lights in Shandong Industrial Park.
• Annual energy estimated savings of 1,630 MWh through setting equipments in stand-by mode.
• Recycled 284.62 tonnes of scrap materials and packaging materials (Shandong and Changzhou Industrial Parks only).
• Increased material utilization rate by 1-2% compared to before software introduction.
• Enhanced sewing efficiency by 51.85% through new sewing machines’ accessories.
• Overall material utilization rate of 81.28% in 2018.
• Since 2016, all packaging plastic bags are made of degradable plastics.

Social Achievements

• Organized various extra-curricular activities for employees to build a sense of belonging.
• Organized health checks for married female employees in Shenzhen of childbearing age.
• Provided training courses including fire safety, OHS, safety for special tasks, emergency response, quality and environmental management system, position-specified skill enhancement, product knowledge, quality awareness, operation of intelligent equipment, etc.
• Donated RMB7.584 million in kind to China Social Welfare Foundation and Shenzhen Xinyi Public Welfare Foundation.
• Donated HKD20,000 to Hong Kong Breast Cancer Foundation Limited.

Governance Achievements

• Established a “Commercial Anti-Corruption Agreement” with zero-tolerance policy for bribery.
• Set up a “whistleblowing” mailbox for anonymous reporting of bribery.

Climate Goals & Targets

Environmental Challenges

• Maintaining high product quality and customer satisfaction.
• Minimizing environmental impact of production.
• Ensuring occupational health and safety for employees.
• Managing supply chain risks.

Mitigation Strategies

• Rigorous quality control system, including material testing and 30 quality tests before shipping.
• Effective complaint handling mechanism and customer feedback channel.
• Eco-friendly design, construction, and operation of manufacturing facilities.
• Geothermal heat pumps, breeze-spraying systems, and other energy-saving measures.
• Comprehensive safety checks, safety training, and emergency response plans.
• Supplier verification process, including assessment of environmental and social performance.

Supply Chain Management

Responsible Procurement

• Supplier verification process, including assessment of environmental and social performance.
• Requirement for suppliers to fulfill international safety standards certifications (e.g., Oeko-tex) or comparable certifications.
• Requirement for suppliers to sign the “Commercial Anti-Corruption Agreement”.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: HKEx ESG Reporting Guide

Certifications: ISO certifications, China Environmental “Ten-Rings Labelling”

Environmental Metrics

ESG Focus Areas

• Environmental impact of raw materials
• Environmental performance of suppliers
• Employee morale
• Occupational health and safety
• Training and development
• Child and forced labour
• Compliance with labour regulations
• Anti-corruption
• Selecting suppliers with good ESG performance
• Product quality assurance
• Service quality assurance
• Respecting intellectual property rights
• Protecting personal information

Environmental Achievements

• Designed, built, and run manufacturing facilities based on ecological principles since 2006
• Reduced energy consumption by 40% using geothermal heat pumps in industrial parks
• Achieved 1-2% increase in material utilization rate through advanced software
• Increased average sewing efficiency by 52.57% with new sewing machine accessories
• Recycled 460.03 tonnes of scrap materials and packaging materials
• Used degradable plastic bags since 2016

Social Achievements

• Supported a charitable initiative promoting women’s health for 13 consecutive years
• Organized various extra-curricular activities for employees
• Provided benefits such as housing allowances, travel allowances, quarterly bonuses, paid annual leave, accident insurance, health checks, women’s health checks, annual awards, annual dinner, outings, birthday and festival gifts, and support to employees facing difficulties in mainland China
• No reports regarding non-compliance with laws and regulations relating to labour standards were received in 2019
• Donated RMB4.6847 million in kind to Shenzhen Xinyi Public Welfare Foundation in 2019

Governance Achievements

• Established a zero-tolerance policy for bribery, outlined in the “Commercial Anti-Corruption Agreement”, applicable to all employees and suppliers
• Set up a “whistleblowing” mailbox for anonymous reporting of bribery
• No reports regarding bribery and other unethical acts were received in 2019; no legal cases regarding corrupt practices were brought against the Group or its employees

Climate Goals & Targets

Environmental Challenges

• Minimizing environmental impact of production plants
• Maintaining a safe working environment and protecting employees from occupational hazards
• Ensuring compliance with labour regulations
• Preventing child and forced labour
• Managing environmental and social risks of the supply chain
• Maintaining product quality and addressing customer complaints

Mitigation Strategies

• Implemented energy conservation and emission reduction measures in industrial parks
• Established safety management procedures and training programs
• Complied with relevant laws and regulations
• Implemented supplier audits and verification processes
• Established complaint handling mechanisms and product recall procedures

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier verification process based on product quality, operational risk, and environmental and social performance
• Requirement for raw materials to fulfill international safety standards (e.g., Oeko-tex)

Climate-Related Risks & Opportunities

Physical Risks

• Typhoons (e.g., Typhoon Lekima)

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: HKEx ESG Reporting Guide

Certifications: ISO certifications, China Environmental “Ten-Rings Labelling”

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Use of degradable plastic bags

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Sustainable Development
• Low-Carbon Development

Environmental Achievements

• Launched product series based on environmental protection concepts and environmentally friendly materials, such as “Heart of the Ocean (海洋之心)” and “Low-carbon Life (低碳生活)”.
• First phase of the photovoltaic power generation project of the Shandong Plant has been put into use, using ground source heat pump renewable energy, thermal insulation and energy-saving walls and natural lighting.
• Proprietary automatic underwear packaging machine uses degradable plastic products as packaging materials.

Social Achievements

• Improved employee welfare and reviewed internal management culture to enhance employee sense of belonging.
• Improved production technology and utilization of automated logistics system to improve workflow and raise production efficiency.
• “MADE IN GREEN Ocean Journey” art pop-up store activities promoting public awareness of marine environmental protection.

Governance Achievements

• Compliance with the applicable code provisions as set out in the Corporate Governance Code contained in Appendix C1 to the Rules Governing the Listing of Securities on the Stock Exchange.
• Adoption of the Model Code for Securities Transactions by Directors of Listed Issuers.
• Audit committee review of consolidated results.

Climate Goals & Targets

Environmental Challenges

• Global economic growth remained moderate due to global inflation, interest rate hikes, Russia-Ukraine war, and US-China technology dispute.
• Uncertainty of inflation and slowing income growth dampened consumer confidence.
• Sluggish real estate market offset post-pandemic recovery in China.
• Slow recovery of China's economy affected retail consumption market.
• Consumers remained cautious on spending and preferred low-priced, functional, and cost-effective consumption.

Mitigation Strategies

• Adjusted marketing arrangements in response to market demand.
• Strengthened brand promotion, allocated more resources, carried out online and offline integrated marketing.
• Collaborated with online streamers for livestreaming.
• Promoted brand and products through in-feed advertisements.
• Optimized sales network, strategically adjusted store network, and integrated online and offline sales.
• Improved production technology and supply chain efficiency.
• Launched new product collections.
• Strengthened research and development of green products.
• Implemented flexible production based on market changes.
• Introduced new technology and equipment innovations to enhance product functions and achieve optimal production efficiency.

Supply Chain Management

Responsible Procurement

• Strengthen cooperation with low-carbon material suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: HKFRS

Third-party Assurance: Ernst & Young

Sustainable Products & Innovation

• “Heart of the Ocean (海洋之心)” series of new underwear products using bio-based and environmentally friendly materials

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Sustainable Development

Environmental Achievements

• Launched the “Heart of the Ocean” underwear series using bio-based, environmentally friendly materials, reducing the use of petroleum by-products and indirectly reducing carbon dioxide emissions.
• Shandong Industrial Park uses ground source heat pump, thermal insulation, natural lighting, and other energy-saving practices to reduce environmental impact.
• Self-developed underwear automatic packaging machine uses degradable plastic products to reduce pollution.

Social Achievements

• Conducted the “MADE IN GREEN Ocean Journey” art pop-up store activities to promote sustainability and environmental protection.
• Promoted environmental protection through Blue-Ribbon public welfare actions.
• Improved employee welfare and reviewed internal management culture to enhance employee sense of belonging.
• Improved production technology and automated logistics system to improve workflow and production efficiency.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Slow recovery of China's economy and uncertainties of global politics and economy impacting consumer sentiment and the underwear market.
• Depreciation of Renminbi affecting revenue.
• Slow recovery of the underwear industry to pre-pandemic levels.

Mitigation Strategies

• Adjusted marketing arrangements in response to market demand.
• Consolidated flagship brands EMBRY FORM and FANDECIE.
• Reserved resources for promotional campaigns in the second half of the year.
• Made full use of social media platforms to promote brands and conduct precision marketing.
• Optimized and improved sales network, strategically adjusting store network and integrating online and offline sales.
• Continued to operate online mirror stores.
• Upgraded product designs and sourced environmentally friendly materials.
• Improved production technology and supply chain efficiency.
• Launched new product collections.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Sourcing environmentally friendly materials.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products and processes.

Reporting Standards

Frameworks Used: HKAS 34

Certifications: Null

Third-party Assurance: Ernst & Young Certified Public Accountants

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)

Initiatives such as the use of renewable energy, biodegradable materials, and energy-efficient practices contribute to these goals.

Sustainable Products & Innovation

• Heart of the Ocean underwear series

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Sustainable Production
• Employee Wellbeing

Environmental Achievements

• Launched the “Butterfly Habitat (ሁʘಐࢹή)” conservation campaign, including art pop-up stores and offline clothing trade-in.
• Used bio-based, environmentally friendly materials for underwear shoulder straps, zero-carbon fabrics, and bamboo fibers, reducing reliance on petroleum byproducts and indirectly reducing carbon dioxide emissions.
• Shandong Industrial Park utilizes geothermal energy and adopts energy-efficient features to reduce environmental impact. Proprietary packaging machines use degradable plastic products.

Social Achievements

• Employee training and improved welfare.
• Reviewed internal management culture to enhance employee sense of belonging.
• Improved production technology and automated logistics system to improve workflow and mitigate cost increase pressure.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Weak domestic consumer sentiment due to a sluggish real estate market, unsatisfactory employment situation, and cautious consumer market sentiment.
• Sluggish real estate market impacting investment property values.
• Underperforming stores requiring impairment of right-of-use assets.

Mitigation Strategies

• Adjusted marketing arrangements to meet market demand.
• Strengthened e-commerce operations and supply chain management.
• Strategic adjustment of store network to balance online and offline sales.
• Streamlining structure to reduce costs.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Strengthening cooperation with low-carbon material suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: HKAS 34 Interim Financial Reporting

Certifications: Null

Third-party Assurance: Ernst & Young Certified Public Accountants

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• GREEN EMBRY
• Spring Traces (݆˚ᔳ ༦)
• Sweet Summer (଩ࢀߕ˚)
• Artistic Mirage (ᖵஔˌ ᅂ)
• Minimalist Lines (ᔊߒᇞૢ)
• Lace Geometry (ᑜക఻О)
• Midsummer Dream (΀ࢀʘྫྷ)
• Soft Seamless (ݓชೌ଱)
• Full Body Shaping (ᔮۨߕޮ)
• Elegant Ripples (ӎඩฆᘜ)
• Fragrant Grass (ٹণܑܑ)
• Fortune Series (၅༶ӻΐ)

Awards & Recognition

• Not disclosed