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”, “Lu Thai Group”, “Group”, or “the 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, 2025. 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 for Textile & Apparel Industry
(CSC9000T), and 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—
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 17, 2026, 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. We are committed to protecting your privacy and will not disclose your information to any third party
without prior consent.
Contents
Energy Conservation and
Environmental Protection/ Community Engagement/Striving
Advancing Green and Low-Carbon to Be an Outstanding Corporate
Chairman's Statement 04 Development Citizen
About the Company Products and Services Environmental management indicators
achievement
Building First-Class Products and Addressing climate change
Group profile 06 Services 68
Resources management
Our culture 71
R&D and innovation 32 72
Development history 08
Quality control
Waste management Key Performance Indicators 104
Performance review 37 73
Customer services and maintenance 38 108
List of honors 12 Reader Feedback
Industry role 13
Employee's Rights and Benefits/
Production Operations Building a Harmonious
ESG Governance Responsible Production Operations Workplace Together
ESG governance structure 16
Production safety management 44 Respect and equality 76
ESG strategy 20
Fire safety management 47 Human rights and labor 81
Stakeholder engagement 22
Chemical management 52 Talent management 84
Materiality assessment 23
Supply chain management 55 Benefits and care 90
Risk management 24
Responsible business conduct 25
Energy Conservation and ESG Report 2025
Chairman's Statement About the Company ESG Governance Products and Services Production Operations Employee's Rights and Benefits Community Engagement Key Performance Indicators
Environmental Protection Lu Thai Textile Co., Ltd
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
Chairman's Statement heartfelt gratitude for your long-term support for the Company!
The year 2025, full of struggle and achievements, has drawn to a close. As a participant and driver of industry development,
Lu Thai has consistently focused on high-quality development, fully implementing the new development philosophy, proactively
integrating into the new development pattern, and adhering to the “customer first” principle. The Company promotes a spirit of
dedication, deeply cultivates the domestic market, expands overseas markets, adjusts structures, builds capacity, and pushes forward
“cost reduction and efficiency enhancement” as well as “overall internationalization”. The Company has significantly advanced
“one improvement”, “three guarantees”, and “five breakthroughs”, maintaining a healthy, stable, and continuous development
trajectory. All departments have made fruitful progress through concerted efforts.
Throughout the year, guided by our “Customer First” philosophy and anchored to our two core strategies, we took proactive
action in a complex and ever-changing market environment. We deepened collaboration with strategic customers, steadfastly
advanced our key account strategy, accelerated the cultivation of potential strategic customers and the development of new customer
relationships, and worked to increase the proportion of integrated fabric-and-apparel sales. We optimized our marketing structure
Liu Zibin
and built a globalized marketing footprint, achieving efficient domestic and international coordination through a multi-channel sales
network. We enhanced our strategic customer service framework by constructing an efficient service loop across three dimensions –
strategic alignment, demand fulfillment, and service excellence – resulting in a multidimensional, cross-regional global development
model and continuously strengthened market competitiveness.
Luthai Textile Co.,Ltd
Throughout the year, we remained committed to innovation-driven growth and technology enablement, solidifying our core
Chairman President competitiveness through breakthrough achievements. Guided by market demand, we deepened the transformation of our R&D
model and established a collaborative innovation ecosystem spanning the full value chain, with a strong emphasis on the integration
of industry, academia, research, and application. Focusing on the development of casual and green low-carbon products, we drove
iterative product upgrades and built differentiated competitive advantages. By benchmarking against industry leaders, integrating
premium resources, and refining our R&D organizational framework and process mechanisms, we established a modern R&D system
designed to lead future development, support business operations, and create value.
Throughout the year, we remained dedicated to lean management and the pursuit of quality and efficiency, unlocking new
potential for development through meticulous execution. Across all product lines, process optimization, equipment upgrades,
and system improvements drove simultaneous gains in production efficiency and product quality, consolidating a green, low-carbon,
intelligent, and efficient manufacturing foundation. Our leadership position in yarn-dyed fabrics was further strengthened, while
the quality and delivery capabilities of yarn products, knitted fabrics, functional fabrics, printed and dyed fabrics, and new apparel
categories saw continued improvement.
Throughout the year, we remained focused on brand empowerment and value leadership, elevating the Lu Thai brand through
integrated, enterprise-wide collaboration. Anchored to our core objective of “consolidating the foundation for development”,
we deepened product innovation by refining details around consumers’ scenario-specific needs to enhance market fit. We optimized
our omni-channel distribution model and improved online-offline coordination mechanisms — positioning shelf e-commerce as a
brand benchmark, achieving sales breakthroughs on the Douyin channel, upgrading in-store consumer experiences, expanding service
boundaries through mini-programs, and systematically rolling out our membership system. We strengthened our team management
framework, clarified core responsibilities, established standardized processes, and built a three-dimensional growth model of“product
innovation + omni-channel coordination + standardized operations”, driving continuous appreciation in brand value.
Throughout the year, we maintained a focus on coordination, efficiency, and service enablement, reinforcing our development
foundation through unity of purpose. Functional departments across the organization embraced the management philosophy of
“supporting operations, enabling efficient coordination, ensuring scientific and practical management, and mitigating risks”. They
proactively aligned with business development priorities, product innovation initiatives, and customer needs, with a strong culture of
initiative and role coverage taking root. The resulting high-efficiency organizational synergy provided a solid foundation for navigating
challenges. We upheld strict safety development standards, deepened risk prevention awareness, strengthened source-level controls,
refined our end-to-end risk identification and mitigation framework, and enhanced emergency response capabilities — all to safeguard
the Company’s stable and sound operations.
Throughout the year, we remained committed to culture-building and corporate responsibility, channeling the spirit of
perseverance and innovation to generate momentum for progress. We continued to deepen the communication of our updated
corporate culture framework, embedding core values across the full chain of business management. We established grassroots
cultural engagement platforms and introduced innovative communication channels and formats, making cultural dissemination a
regular and all-encompassing endeavor. Through recognition programs, technical skills competitions, cultural and sports activities,
and other initiatives, the spirit of hard work was truly instilled across the organization. In pursuing stable operations, we fulfilled our
social responsibilities; in embracing our responsibilities, we demonstrated our corporate values — achieving a profound integration of
corporate culture and business development.
As we step into 2026, let us carry our unwavering conviction into every step forward, channel our energetic drive into every
challenge we take on, and embed our practical commitment into every task we undertake. With the understanding that“success
need not be of my own making” and the conviction that “success must have my contribution”, let us move forward with
determination and steadfastness — writing our story through hard work, forging brilliance through dedication, and together
painting an ever more magnificent future for Lu Thai Group.
April 17, 2026
Energy Conservation and ESG Report 2025
Chairman's Statement About the Company ESG Governance Products and Services Production Operations Employee's Rights and Benefits Community Engagement Key Performance Indicators
Environmental Protection Lu Thai Textile Co., Ltd
About the Company Our culture
Mission: Global Elegance, Weaving Excellence, Green Manufacturing, Better Living
Group profile
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
Lu Thai Textile Co., Ltd., founded in 1987, is a global apparel solutions provider with premium fabrics as its core. The Company is one aspirations for a better life.
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 Vision: A Global Green Fashion Textile and Apparel Industry Group with Leading Fabric
Excellence
international textile and apparel enterprise encompassing R&D, design, manufacturing, and marketing services.
Currently, the Company operates 700,000 spindles and 102,000 thread spindles, with an annual production capacity of 220 million
We aim to be a world-class textile and apparel industry group with leading fabric development and manufacturing capabilities, a
meters of yarn-dyed fabric, 90 million meters of dyed fabric, 20 million meters of functional fabric, 14,000 tons of knitted fabric, and
European Union, and Japan. The Company holds strategic partnerships with renowned domestic and international brands, with its services. With outstanding product quality, green fashion, leading market share, and strong brand influence, we strive to set the
high- and mid-end yarn-dyed fabric exports accounting for more than 18% of the global market share. industry benchmark.
Over the years, Lu Thai has remained steadfast in its commitment to sustainable development guided by the principles of “green, low-
carbon, and environmentally responsible” practices, delivering healthy and eco-friendly textile products to the world. The Company
holds ISO 14001 Environmental Management System certification and OEKO-TEX Standard 100 certification. We established an Energy Values: Customer First, Driven by Hard Work, Pursuit of Excellence, Integrity and
Management Center and leverage automation and information technology for scientific energy management, conducting ongoing“dual
increase and dual conservation” initiatives in line with our energy management policy of “energy saving, consumption reduction,
Win-Win Cooperation
emission reduction, and efficiency enhancement”. We closely track industry advances in low-carbon and environmentally friendly
technologies, prioritizing the use of natural and renewable textile raw materials; adhering to safe and healthy auxiliaries, dyes, and Customer First: Customers are the foundation of the Company’s survival. Meeting customer needs and ensuring customer
chemicals; and implementing low-carbon, energy-saving programs across all production and business processes through the adoption satisfaction are our unwavering pursuits and the ultimate standards for evaluating our work. We stay attuned to changes in customer
of new technologies, processes, equipment, and energy sources. The Company’s research on “high-flux membrane treatment needs, respond quickly, innovate operations, and provide high-quality products and services to meet customers’ personalized and
and reuse technology for printing and dyeing wastewater and its industrialization” was awarded the Second Prize of the National diverse needs, enhance their experience, and achieve customer satisfaction.
Science and Technology Progress Award. Multiple technological achievements — including half-bath dyeing and reclaimed water
reuse — have represented major breakthroughs in energy conservation, emission reduction, and green low-carbon practices within the Driven by Hard Work: To adapt to new circumstances, the Company emphasizes the role of hardworking individuals while upholding
textile industry. The Company has been recognized as an “Advanced Enterprise in Energy Conservation” and an “Enterprise with a "people-oriented" approach, providing a platform for them to realize their value and achieve rapid growth. Resources are directed
Outstanding Contribution to Energy Conservation”, and has been included on the national pilot list for the creation of “resource- toward those who strive, ensuring their efforts are recognized, so as to achieve common development of the strivers and enterprises.
conserving and environmentally friendly” enterprises.
Employees are encouraged to set ambitious goals, challenge themselves, persevere through difficulties, prioritize dedication over
In addition to generating business value, fostering employee growth, creating employment, and contributing to government tax personal comfort, take on responsibilities where they are most needed, and proactively address challenges to create value for the
revenues, Lu Thai has embraced its social responsibilities and actively supported philanthropic causes. Over the years, the Company
Company and its customers.
has donated more than RMB86 million and invested over RMB100 million in social welfare initiatives encompassing poverty alleviation,
education support, disaster relief, elderly care, and community development. The Company has been recognized with honors including Pursuit of Excellence: Only through continuous pursuit of excellence can we adapt to new circumstances, overcome challenges,
the “Outstanding Contribution to China’s Charitable Cause Award” and the “Outstanding Contribution to Fulfilling Social maintain competitiveness, and drive personal and corporate development. There is no "best," only "better." In both conduct and work,
Responsibility Award”, among others. 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.
Energy Conservation and ESG Report 2025
Chairman's Statement About the Company ESG Governance Products and Services Production Operations Employee's Rights and Benefits Community Engagement Key Performance Indicators
Environmental Protection 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 Lu Thai Textile and Xiniu Intelligent
Lu Thai became A-share listed. its new 30-year voyage.
established. Fabric Museum Manufacturing was initiated.
A high-level forum on
and the Lu Thai
Beijing Sichuang Apparels Co., the theme "Gather the
Lu Thai Textile Company was Development
Ltd. was opened. 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
Future Development" The inauguration
The Company T h e Z i c h u a n U r ba n S e wa ge Industrial Design
R&D Base. ceremony for new
passed the was held to plan the The Company
It passed the Treatment Plant invested by the Summit was held.
development vision for projects at Lu Thai successfully obtained
ISO14001 Company was put into operation.
ISO9001 Quality the next three decades. The construction of Group's overseas
Environmental approval as a 2025
Management the Functional Fabric production base was
Management The Lu Thai Sports Square was Lu Thai Milan Office Qilu Skilled Masters’
System The Company was held.
System put into use. Intelligent Ecological Featured Workstation.
Certification. was opened. recognized as a
Certification. Lu Thai Group was Park Project began.
"National Industrial Lu Thai Textile was
incorporated. Lu Thai School The Company was listed on the 2023
Ranguang Textile Design Center", making The construction of
of Textile and granted the "China Yicai Corporate Social
Co., Ltd. was The Company it the first enterprise to the Lu Thai knitting
Apparel, Shandong Quality Award". Responsibility Ranking
acquired. passed the win this honor in Zibo project began and
University of in China and won the
SA8000 Social City. Phase I was put into
Technology, was "ESG Innovation Practice
Responsibility production.
Certification.
A grand ceremony Lu Thai issued RMB1.4
Lu Thai Textile Lu Thai (America) The unveiling billion of convertible
was held because
Company was Lu Thai became 2003 Textile Co., Ltd. was ceremony of
the Phase II project bonds.
B-share listed. opened. Lu Thai Textile released
restricted into a joint- LuFeng Company of LuFeng Company the Company's
The Phase I project of "LUTHAI 1987" and "
stock enterprise with Limited was Limited was put into academician
Yunjinchuan The Company Luthai Lite Collection"
foreign investment workstation was the Functional Fabric
Clothing Co., Ltd. established. production. won the "Global online brand.
and renamed Lu Thai Lu Thai was held in the West Intelligent Ecological
was acquired. recognized as a Performance
Textile Co., Ltd. The Company District Industrial Park was put into
"Stated-accredited Excellence Award". production.
won the title, Park.
Enterprise "China Advanced The Company
Beijing Lu Thai The Company passed The project of colored
Lu Thai Textile Company, a Technology Center" Enterprise with The Company
Shirt Co., Ltd. was was granted spun yarns was put
the OHSAS18001 by five departments, an Excellent successfully
China-Thailand joint venture, established. the third "China into production. The unveiling ceremony of the
Occupational Health including Performance Model passed the on-
was incorporated. Grand Awards for "Zichuan District Aesthetic
and Safety Management the National (2012)". site accreditation
Industry". Education Practice Base" at Lu Thai
System Certification. Development and of demonstration
Lu Thai's operating Vocational Training School was
Reform Commission enterprises in the held.
Zibo Luqun Textile Co., revenue exceeded
and the Ministry The Lu Thai Textile and Apparel Engineering Research textile industry
Ltd. was established. RMB10 billion, a new
of Science and Institute was founded. for energy-saving Lu Thai Textile was included on
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 year voyage.
reduction Carbon Peaking "Leaders"
Scientific and Technological Progress Award for its key
technology (enterprises).
processing technology of ultra-high count pure cotton
application.
fabrics and its industrialization, high-flux films for printing
and dyeing wastewater and recycling technology.
Energy Conservation and ESG Report 2025
Chairman's Statement About the Company ESG Governance Products and Services Production Operations Employee's Rights and Benefits Community Engagement Key Performance Indicators
Environmental Protection 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
Taxes contributed to the state Cash dividends distributed over
Social contribution value per share
the past three years
Proportion of R&D personnel to Donations to society and
total employees government
performance
R&D investment and its percentage of Investment in education support
revenue
Own brands sales
Own brands: LT·GRFF, Lu Thai, Lu Thai 1987, Luthai Lite Collection, NARCISU and so on.
ESG Report 2025
About the Company Lu Thai Textile Co., Ltd
List of honors
One of the first enterprises
Textile Craftsman”and“Most a “5A Enterprise in Corporate Zhiyuan Award
Beautiful Textile Worker” Culture Development and
Management”
China National Textile & Apparel Council, China Quality Certification Center (CQC) CQC Partner in Progress — Zhiyuan Award Outstanding Contribution to High-
China Finance, Trade, Light Industry, Quality Development of Shandong’s
China Corporate Culture Institute
Textile, and Tobacco Trade Union, and the Private Economy
Women’s Workers Department of the All-
China Federation of Trade Unions
“Continuous Innovation Unit”
Brand Competitiveness “AAA Credit Enterprise”
Textile Innovation Products
Advantage Enterprise
China Textile Information Center
China National Textile and Apparel Council China Enterprise Confederation, China
Entrepreneurs Association
Key Technologies and
Key Technologies and
Industrialization of Structural Design
Industrialization of Efficient, Green, Shandong Province May
and Preparation for Thermal and Fourth Red Flag Youth League
and Fashionable Online Dyeing – First
Moisture Comfort Functional Textiles
Prize for Scientific and Technological Committee
– Second Prize for Scientific and
Progress “AAA Credit Enterprise” Brand value: 12.826 billion yuan
Technological Progress
Shandong Provincial Committee of the
China National Textile and Apparel Council China National Textile and Apparel Council Youth League
Industry role
Silver Award in the Fashion Product
and Innovation Unit” in Private Enterprises for
Category at the 5th “Governor’s
Shandong Province’s textile University Graduates” in Cup” Industrial Design Competition
and apparel industry Shandong Province
Shandong Textile and Apparel Association Human Resources and Social Security Department of Industry and Information
Department of Shandong Province Technology of Shandong Province
Industry Organizations Role of the Company
China National Textile and Apparel Council The 5th Vice Chairman Organization Specially Invited by the Council
Outstanding Contribution to 2024 “Outstanding Advanced Collective in the
High-Quality Development of Contribution Enterprise for “Five Zibo” Development China Chamber of Commerce for Import and Export of Textiles The 7th Vice Chairman Organization Specially Invited by the Council
Shandong’s Private Economy Stable Economic Growth” Initiative
Shandong Development and Reform Zibo Municipal People’s Government Zibo Municipal People’s Government China Dyeing and Printing Association The 7th Vice Chairman Organization Specially Invited by the Council
Commission, Department of Industry and
Information Technology of Shandong
Province China National Garment Association The 8th Vice Chairman Organization of the Council
China Textile Engineering Society The 27th Standing Director Organization of the Council
China Cotton Textile Association The 6th Vice Chairman Organization of the Council
China Textile Enterprise Association The 11th Standing Director Organization of the Council
ESG 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.
ESG Report 2025
ESG Governance Lu Thai Textile Co., Ltd
Organizational Chart
ESG governance structure
The he Board of Directors is responsible for reviewing the Group’s
Decision- Board of overall ESG strategy and reports, as well as assuming ultimate. Board of
making Level Directors
responsibility for the Group’s overall direction, strategy, objectives, shareholders
and performance in sustainable development.
Formulating the Group’s ESG objectives, strategy, and work
Board of Directors
plans, and submitting them to the Board of Directors for approval.
Identifying, monitoring, and reviewing potential ESG issues,
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.
Special Committees of
Level President Prioritizing relevant ESG issues, risks, and opportunities, analyzing
the Board of Directors
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
Group.
President
Senior
Management
Collecting and organizing materials for ESG reports.
Providing ESG feedback and recommendations within their
Execution respective departments.
All
Level departments Implementing sustainable development policies and initiatives
assigned to them.
Integrating and evaluating ESG risks or opportunities identified
within their operations.
Governance structure
Whol l y -owned Ma j ority -owned Branch companies Fun ct ion al
Production l ines
subsidia ries subsidia ries and offices de part me n ts
The Company continuously improves the basic governance structure composed of the General Meeting of Shareholders, the Board of Directors,
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 Listing Rules of Shenzhen Stock Exchange, 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 and Appraisal Committee. These special committees make full use of their expertise to make scientific decisions on the
Company’s development issues.
ESG Report 2025
ESG Governance Lu Thai Textile Co., Ltd
Committee Name Main Responsibilities Functioning of Committee
The Board of Directors comprises 12 directors (including four independent directors), of whom three are female directors and three are foreign
nationals. In 2025, the Board convened 12 meetings with a director attendance rate of 100%. During the reporting period, a total of 51 agenda
items were reviewed and approved, covering matters such as related-party transactions, Board renewal, policy revisions, periodic reports, profit
distribution, and the ESG report.
Chairman: Liu Zibin
Conduct feasible study on the Company's
long-term strategic development plans and Members: Xu Zhinan, Liu Deming, Xu
major investment decisions, determine the Jianlv, Zheng Huisheng, Zhang Zhanqi,
Strategy Company's development plans, improve Zhang Keming, Du Lixin, Zhu Beina, Yu
Committee investment decision-making process, enhance Mingtao, Quan Yuhua, Wei Jian
scientific decision-making, and improve the
In 2025, the Committee held one
quality and effectiveness of major investment
decision.
meeting, with a full attendance rate of the 25% 25%
members.
Male directors Chinese directors
Chairman: Zhu Beina
Study and formulate the criteria and
procedures for selection of the Company's Members: Liu Zibin, Yu Mingtao, Quan
Nomination directors and senior management, optimize Yuhua, Wei Jian
Committee the structures of the Board of Directors and
In 2025, the Committee held three
the management, and improve corporate
meetings, with a full attendance rate of
governance structure. Date of Service
the members. Name of Director Gender Age Position(s)
Commencement
Liu Zibin Male 61 Chairman and President June 6, 2007
Xu Zhinan Male 96 Vice Chairman May 6, 2004
Liu Deming Male 36 Director May 12, 2017
Formulate and review remuneration policies Chairman: Zhu Beina
and plans, formulate and implement
Members: Liu Zibin, Yu Mingtao, Quan Xu Jianlv Female 51 Director June 9, 2022
assessment and evaluation criteria, improve
Compensation Yuhua, Wei Jian
the assessment and evaluation system
Committee Zheng Huisheng Male 38 Director June 9, 2022
for the Company's directors and senior In 2025, the Committee held one
management, and formulate scientific, meeting, with a full attendance rate of the
effective remuneration management policies. members. Zhang Zhanqi Male 54 Director and Vice President June 9, 2022
Zhang Keming Male 58 Director and Chief Accountant June 9, 2022
Du Lixin Male 51 Director and Chief Engineer June 9, 2022
Zhu Beina Female 68 Independent Director June 9, 2025
Responsible for the communication, Chairman: Yu Mingtao
supervision, and review of the Company's Yu Mingtao Male 47 Independent Director May 7, 2025
Members: Liu Deming, Wei Jian
internal and external audits, strengthen the
Audit Committee Board's effective oversight of the management, In 2025, the Committee held six meetings, Quan Yuhua Female 70 Independent Director June 9, 2022
enhance internal control capabilities, and with a full attendance rate of the
improve internal control policies. members.
Wei Jian Male 57 Independent Director June 9, 2025
Board development
Lu Thai Textile places great importance on board development, continuously optimizing 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 Company also assigns responsibilities to directors based on their professional backgrounds and work
experience, ensuring efficient operations and sound decision-making by the Board—thereby effectively enhancing the Company’s overall
governance standards and operational efficiency.
ESG Report 2025
ESG Governance Lu Thai Textile Co., Ltd
A company’s sustainable development
ESG strategy
management shows the responsibility and
respect of the company for its customers,
Decent Work Promote sustained, inclusive and sustainable economic growth, employees, products, and future. For
and Economic full and productive employment and decent work for all.
Growth many years, Lu Thai has kept pace with
By performing the digital and intelligent transformation of
international and domestic development
production lines, Luthai has reduced labour intensity and raised trends for years. By vigorously responding to
resource utilisation efficiency. national and industry policies, Continental
Group has demonstrated its sustainable
development through actions.
Industry, Build resilient infrastructure, promote inclusive and sustainable
No Poverty End poverty in all its forms everywhere. industrialisation and foster innovation. 2022-2026 ESG Strategic Goal: Achieve an
Innovation and
The Company has actively paid taxes to the governments Infrastructure industry-leading level of green, low-carbon,
of countries where it operates to promote the economic In 2025, Lu Thai invested RMB 192 million in research funds in total. environmentally friendly, and sustainable
Additionally, it has been granted 578 patents in total, including eight
development of the surrounding communities. development.
software copyrights. Lu Thai has organized or participated in the
formulation of 84 national and industry standards.
Zero Hunger End hunger, achieve food security and improved
Reduced
nutrition and promote sustainable agriculture. Reduce inequality within and among countries.
Inequality Peace and
The Company has implemented the policy of local Justice Strong
The Company has established plants in overseas developing Institutions
employment and provided regionally competitive
countries, and actively created job opportunities to develop
remuneration and benefits.
local economies.
Ensure healthy lives and promote
well-being for all at all ages.
Sustainable Promote peaceful and inclusive societies for
Good Health Cities and Make cities and human settlements inclusive,
Provide a comfortable and safe working environment, ensuring sustainable development, provide access to justice
Communities safe, resilient and sustainable.
and Well-being employee safety and health. During the pandemic, no cluster for all and build effective, accountable and inclusive
infections occurred among Company employees. Diverse assistance activities have been conducted in institutions at all levels.
The Company properly prevented and treated occupational diseases. economically backward villages. Luthai Textile has purchased Explicitly incorporated health, safety, and environmental
Besides, the Company has established and improved employees’ agricultural products from local farmers and donated daily management requirements for suppliers into tendering
profiles of occupational health and organized annual check-ups to necessities to residents to improve their living conditions. conditions, indirectly encouraging suppliers and contractors
protect the physical and mental health of employees. to continuously strengthen their safety production and
environmental protection practices.
Ensure sustainable consumption and
Ensure inclusive and equitable quality education and
production patterns.
promote lifelong opportunities for all.
Quality Responsible Sustainable development reports have been released regularly,
Education The Company has improved its employee education and Consumption and ESG-related information is actively disclosed to enhance Partnerships
training mechanism. In 2025, 23,593 employees participated and Production transparency. for the Goals
in vocational training, achieving a 100% vocational training
coverage rate. Meanwhile, the Company has updated the requirements
for suppliers and implemented stricter standards of duty
The Company organizes activities to support students every performance for suppliers. It has worked with suppliers and
fall by providing employees’ children with scholarships. It contractors to actively perform duties to improve the industrial
also donates educational funds to society to cultivate textile chain environment and drive social responsibility practice.
talent.
Achieve gender equality and empower all
Gender Climate Strengthen the means of implementation and
women and girls.
Equality Action Take urgent action to combat revitalise the Global Partnership for Sustainable
The principle of gender equality has been observed. The Labor climate change and its impacts. Development.
Union has earnestly protected female employee rights and interests
and improved their competence. Lu Thai Textile has responded to the 2030 “carbon The Company has actively participated in industry
peak” and 2060 “carbon neutrality” goals by actively organizations and initiatives, joined multiple industry
An equal remuneration system has been developed to ensure equal
carrying out climate action plans. associations, earnestly conducted industry exchanges,
pay for equal work between male and female employees.
and promoted industry development.
Clean Water Life below
and Sanitation Ensure availability and sustainable management of Water Conserve and sustainably use the oceans, seas and
water and sanitation for all. marine resources for sustainable development.
Production departments have been encouraged to propose
new measures to save water. The Company has increased The Company has proposed new processes, reduced the COD value
investment in reclaimed water reuse projects, further of printing and dyeing wastewater, and protected water resources
promoting recycled use of water resources and providing a and aquatic animals.
long-term guarantee for social development.
Affordable and
Clean Energy Life on
Ensure access to affordable, reliable, Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably
sustainable and modern energy for all. Land manage forests, combat desertification, and halt and reverse land degradation and
halt biodiversity loss.
The Company has conducted the project of rooftop photovoltaic power
generation to contribute to the energy transformation of enterprises and society. 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.
In the meantime, it earnestly performs greening governance, holds activities on Arbor Day, and enhances employees’
awareness of environmental protection.
ESG Report 2025
ESG Governance 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.
Means of
Stakeholders Issues of Concern Actions of Lu Thai Textile
Communication
Operation in Strictly complying with laws and
Materiality assessment
Compliance Supervision and regulations
Safe and Green inspection Actively responding to environmental
As part of our stakeholder engagement policy, we conduct periodic ESG materiality assessments. This year, with the assistance of external
Production Visits calls and formulating action plans
Fulfillment of Social Material providing Helping the poor and improving experts, we carried out a materiality analysis in accordance with the guidance provided by the Self-Regulatory Guidance No. 3 for Companies
Responsibilities people’s livelihoods Listed on Shenzhen Stock Exchange—Preparation of Sustainability Report issued by the Shenzhen Stock Exchange. Through this process, we
Government identified material issues that significantly impact both the Company and stakeholders, determining the most critical issues for our business
and stakeholders while providing insights for the Group’s ESG reporting and strategy.
Customer visits Improving the product quality management
Product Quality Customer service system
Responsible Marketing hotline Improving the customer relationship
Integrity Opening business management system
Respecting Customers' operations Conducting the customer satisfaction survey
Customers
Opinions Satisfaction survey Visiting customers regularly Materiality Assessment Process
Corporate Governance 1.ESG Issue Library Creation
Board of shareholders Compliant operations, openness, and
and Profitability
On-site survey transparency
Honest and Compliant Referring to the materiality issue distribution guidance from the Self-Regulatory Guidance No. 3 for Companies Listed on Shenzhen
Telephone consulting Safeguarding the legitimate rights and
Operations Stock Exchange—Preparation of Sustainability Report and Self-Regulatory Guidance No. 17 for Companies Listed on Shenzhen Stock
Interaction Easy of the interests of shareholders by laws
Competitive Edge Exchange—Sustainability Report (Trial), we established the 2025 ESG issue library after a comprehensive evaluation, considering the
Shenzhen Stock Exchange
Shareholders and Company’s overall business development in 2025 and best ESG management practices within the industry.
investors
Require suppliers to sign a quality
Product Quality statement
Supplier audits 2.Formulation and Implementation of Stakeholder Engagement Plan
Product Safety and Require chemical product suppliers
On-site
Environmental to provide relevant qualification
communication By closely focusing on trends in the textile industry and broader socio-economic developments, we engaged with key stakeholders during
Compliance certificates and sign an environmental
Telephone and email
Corporate Compliance compliance statement the Reporting Period through communication and surveys to gather their opinions and suggestions.
communication
Operations Conduct regular on-site supplier audits
Suppliers and communications
Improving the remuneration 3.Quantitative Assessment of ESG Material Issues
Respecting Human Rights management system
Remuneration and Improving employee cultivation and Internal and external stakeholders were invited to evaluate the materiality of various ESG issues, and a materiality matrix was developed.
The Labor Union and the
Benefits promotion mechanisms
employee representative The Company invited stakeholders across all categories to complete a questionnaire survey, rating the importance of each of Lu Thai’s
Career Development Diverse communication channels
assembly 2025 ESG topics on a scale of 1 to 5, with higher scores indicating greater importance. After the survey, the Company analyzed the
Channels Helping for employees in need
Employee complaint feedback and assessed each issue’s materiality based on two dimensions: “materiality to corporate development” and “materiality
Health and Safe
Employees Satisfaction survey Establish a comprehensive complaint
to stakeholders”. This analysis resulted in the ESG materiality matrix for the year. The survey covered a wide range of stakeholders,
Production mechanism and channels
including board members, senior and mid-level management, employees, customers, investors, suppliers, and government regulators.
Exchange visits among Continuously improving supplier
senior management management procedures and strengthening
Green and Low-carbon personnel the control of operational risks
Development Exchange and cooperation Strengthening contract management and 4.Review and Approval of the Materiality Assessment Report
Honest and Compliant in experience and standardizing credible procurement
Operations technology Sharing experience and technology and
Daily communication exchanging needed goods The materiality assessment report was submitted to the management for review and approval before the results were published.
Value chain partners Building industry-university-research
Exchange through industry
platforms
conferences
A Harmonious
Helping the poor and joining public
Community Supervision by the
welfare activities
Relationship masses
Community donation and landscaping
Contributing to the Visiting communities
Promoting employment and
Communities and the Community Economy
developing local suppliers
public
ESG Report 2025
ESG Governance Lu Thai Textile Co., Ltd
Lu Thai Textile 2025 ESG Materiality 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
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 2025.
Environment (E) Corresponding Society (S) Corresponding Factories and functional departments are responsible for executing fundamental risk management processes
Chapter Chapter and control measures, promptly identifying, managing, and controlling related risk control systems.
Responsible business conduct
Compliance management
Adhering to operations with integrity, law-abiding principles, and compliance, Lu Thai Textile has always emphasized that integrity and
the 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
development.
Governance (G) Corresponding Chapter
Compliance management system
Following the philosophy of operations with integrity, the Company has continued to improve the compliance management system,
determine the assessment scope and priorities. With all procedures assessed, the on-site testing has identified deficiencies, made suggestions
for improvement, and timely produced the Internal Control Self-assessment Report to ensure effective internal control assessment.
Risk management To promote normative and institutionalized business operations, the Company, considering its realities, has formulated the Regulations on
Internal Auditing in accordance with the Internal Auditing Standards and the Basic Norms for Corporate Internal Control promulgated by the
Risk management empowers the stable operation of enterprises.In accordance with the Code of Corporate Governance for Listed Companies Ministry of Finance and the relevant laws and regulations. By doing so, it has effectively improved the overall management and risk prevention
and other applicable regulations, as well as the Company’s Articles of Association, the Company systematically identifies internal and external capabilities.
risks and formulates corresponding response measures. Risks are managed through a structured process, including information collection, risk
assessment and analysis, strategy formulation, risk response, and monitoring and improvement. Additionally, the Company has established a
“Three Lines of Defense” risk management framework to enhance the rationality, standardization, and effectiveness of its risk management
practices.
Energy Conservation and ESG Report 2025
Chairman's Statement About the Company ESG Governance Products and Services Production Operations Employee's Rights and Benefits Community Engagement Key Performance Indicators
Environmental Protection Lu Thai Textile Co., Ltd
Internal audit Business ethics
The Company attaches great importance to business ethics and strictly complies with laws and regulations of countries where it operates, as well
as the industry recognized code of conduct. It has established a Code of Ethics Control Procedure, and it advocates honesty and trustworthiness,
The Company values the implementation of internal control.
fair competition, anti-corruption, openness and transparency, and reinforces the oversight and guidance of partners’ business conduct,
Indicator (Unit) 2023 2024 2025 Following its 18 guidelines for internal control, the Company
committed to creating an honest, fair, clean, and harmonious operating environment.
comprehensively tested and assessed the system development
Internal control and implementation of the internal control of the Head Office
audit coverage (%) 82.15 80.45 85.86 and holding subsidiaries, identified design and operational
deficiencies, and formulated and implemented targeted
Anti-corruption and bribery
remediation measures for each type of deficiency. In 2025, the
Note: Internal control assessment coverage is the ratio of the total Company assessed the internal control of eight subsidiaries
assets of the assessed entities to the Company’s total assets and issued the internal control assessment matrices.
The Company strictly complies with applicable anti-corruption and anti-bribery laws
and regulations in all jurisdictions in which it operates, and continuously strengthens
its anti-corruption supervision and oversight mechanisms to ensure compliant and
clean operations. In 2025, the Company signed a total of 1,000 Anti-Commercial Bribery
Commitment agreements with key suppliers. As of December 31, 2025, no business
relationships had been terminated due to supplier violations of these commitments.
Targets Indicators 2023 2024 2025
The Company conducts audits by relevant policies every year. In the first half of
Senior leaders Quantity of non-conformance events 0 0 0 2025, special audits were conducted covering the sales operations of the Global
Marketing Department, the Apparel Marketing Department, and the Brand Promotion
Middle-level leaders Quantity of non-conformance events 0 0 0 Department, as well as product line procurement and outsourced processing activities,
and related functions
and ongoing compliance with AEO (Authorized Economic Operator) certification
Employees Quantity of non-conformance events 0 0 0 standards. Audit areas included credit insurance management, handling of excess
inventory, sales expense management, procurement vendor selection, price inquiry
External audit results
Standard unqualified audit Standard unqualified audit Standard unqualified audit and comparison, contract performance management, and AEO compliance. In the
Shareholders
opinions opinions opinions second half of 2025, internal control evaluations were conducted across Lu Thai Textile
and its subsidiaries, covering the Company’s major business activities and high-risk
Suppliers Quantity of non-conformance events
Code of conduct for employees
Information disclosure
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,
The Company has established and improved the information disclosure mechanism, which publicity and education of laws, inspection and supervision of employee behaviors and other measures, the Company urges employees to raise
received positive feedback from investors: awareness of ethical standards, and improve their professional standards, to ensure the implementation of integrity values and ethical behavior,
and thereby promote the healthy development of various business.
As at the end of 2025, the Company had been rated A for eight consecutive years in the information disclosure assessment on the
listed companies on the Mainboard by the Shenzhen Stock Exchange.
Complaint reporting mechanism
The Company releases its performance results as well as major and temporary announcements to investors of A- and B- shares The Company continuously improves its complaint and whistleblowing mechanism by providing multiple reporting channels, including mail,
via Internet media (cninfo.com) designated by the China Securities Regulatory Commission as well as Securities Times, Shanghai telephone, email, and in-person reports. Customers, employees, suppliers, business partners, and all individuals with business dealings with the
Securities News, China Securities Journal, and Ta Kung Pao. Group are encouraged to report corruption, fraud, violations of company policies, or any suspected illegal activities.
We are committed to strictly protecting whistleblower privacy and prohibit the disclosure of personal information or report details to any third
The Company responds in real time to investors’ messages and questions via the “Interaction Easy” of the Shenzhen Stock party. Retaliation against whistleblowers is strictly prohibited.
Exchange. In 2025, a total of 166 questions were replied, with a response rate of 100%. We will complete the investigation and issue a written investigation report within 30 business days, and continue to track the implementation of
subsequent follow-up actions. For acts in violation of regulations that disclose information about whistleblowers, the Company will, depending
on the severity of the circumstances, impose disciplinary actions such as transfer from the position, salary reduction, and demotion; If the act is
suspected of constituting a violation of laws or a crime, it will be transferred to the judicial authorities for handling in accordance with the law.
ESG Report 2025
ESG Governance Lu Thai Textile Co., Ltd
Information security and privacy protection
Information security protection measures
Information security
Server security
We configured security policies for system firewalls and installed server-side security protection
systems.
The Company proactively implements a comprehensive range of measures to continuously maintain and improve information security across
five dimensions: computer security, network security, data security, hardware device security, and operational environment security. Through
the deployment of firewalls, intrusion prevention systems, vulnerability scanning systems, bastion hosts, and other protective measures, the Computer safety
Company strives to minimize the probability of information security incidents such as data breaches.
We deployed antivirus software and endpoint security protection systems in a unified manner. By extracting
information from firewall intrusion prevention systems, we identified malicious attacks, trojans, and other
threats, and carried out detection and removal of malicious network addresses.
The Company has established the Information System Operation Management Cybersecurity
Process, the Information Security Management Regulations, and the IT
Infrastructure Operation Management Process to further enhance data security We were equipped with security devices and measures such as firewalls, intrusion prevention
emergency response mechanisms and procedures. In the event of a suspected systems, and internet behavior management.
data breach, the operations and maintenance team will immediately verify the
incident, determine the scope of the breach and the affected systems, promptly
Hardware equipment
report to the leadership taskforce, suspend relevant data access permissions,
and simultaneously notify affected users— fulfilling its information notification
obligations in strict accordance with applicable laws and regulations. We conducted daily inspections, promptly reported and followed up on identified issues. An environmental monitoring system was in place to
monitor in real time the status of UPS power supply, indoor temperature and humidity, lighting, fire protection equipment, fresh air systems, and
other physical environmental conditions. We developed emergency response plans and drill schedules, proactively organized emergency drills,
The operations and maintenance team will conduct security assessments of all and promptly improved issues identified during the process.
affected systems, data, and devices, performing root cause analysis through log
investigation and properly preserving relevant evidence. Timely feedback on the
outcome of remediation actions will be provided to affected users, and restoration Data security
of affected systems and devices will be completed. Security reinforcement and
optimization upgrades will be implemented to address identified vulnerabilities
Business data in the data center was backed up across different machines and locations. The
and prevent recurrence of similar security incidents.
operating system adopted virtual machine disaster recovery backup, and equipment adopted
geo-redundant active-active deployment and other security measures. Regular recovery
verification tests were conducted to ensure data availability, reliability, and recoverability.
During the reporting period, the Group did not experience any data breach incidents, nor were there any legal proceedings related to information
or data security involving the Group or its employees.
Deploy a bastion host management system to enforce access control
and code approval for backend administrators of information
systems, while logging and recording the operational behavior of
information management personnel in the backend.
The Company regularly provided employees with special information security training and continuously promoted and popularized information
security knowledge across the Group, thereby continuously enhancing 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.
ESG Report 2025
ESG Governance Lu Thai Textile Co., Ltd
Products and Services /
Building First-Class Products and Services
In the face of a complex and rapidly evolving market environment, the Company gives full play
to its marketing leadership role, mobilizing all departments to collaborate efficiently and work
in close coordination. Proactively engaging with the market, monitoring market dynamics, and
gaining insight into customer needs, the Company conducts targeted R&D and design activities.
Guided by its new industrial positioning of “technology, fashion, and green”, and with the
goal of becoming “a globalized apparel solutions provider with leading fabrics at its core”, the
Company continuously enhances the quality of its products and services.
UN Sustainable Development Goals
Energy Conservation and ESG Report 2025
Chairman's Statement About the Company ESG Governance Products and Services Production Operations Employee's Rights and Benefits Community Engagement Key Performance Indicators
Environmental Protection 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 The Company has established deep collaboration with multiple universities and research institutes, spanning foundational talent training to core
Company has formed a three-level R&D innovation team led by Lu Thai Engineering Technological Institute, focusing on breaking through the technology R&D, progressively building a well-rounded collaborative innovation mechanism encompassing industry, academia, and research. As
professional expertise for production lines, and mainly comprising the quality control teams of the workshops and groups of the plants. By at the end of 2025, the Company established a long-term stable partnership with universities such as Donghua University, Hong Kong Polytechnic
doing so, it has continuously enhanced the internal innovation mechanism, developed the scientific and technological innovation platforms, University, Jiangnan University, Qingdao University, and Wuhan Textile University. Through R&D cooperation with leading institutes in new
deepened the industry-university-research cooperation, and laid a solid foundation for the Company’s innovation cause. technologies, materials, and products, the Company has improved its R&D capability.
Investment in technological innovation The situation of school-enterprise cooperation
By the end of 2025, the Company had undertaken
eight national-level scientific research and Technology awards Technology plan Donghua University
innovation platforms and five provincial-level
platforms. It had received a total of 60 national Science and Technology Progress technology projects at the Lu Thai and Donghua University jointly established the “Shandong Provincial Key Laboratory for High-End Intelligent
and provincial-level Science and Technology Awards provincial level or above Manufacturing of Fibers and Products”. Driven by technology development and innovation, and closely aligned with industry
Progress Awards, including 13 national and needs and application-oriented goals, the laboratory is dedicated to building a high-level R&D platform with regional radiating
One First Prize of the National
provincial-level first prizes, one national first influence.
Science and Technology Progress
prize for science and technology progress,
Award Technology plan
and three national second prizes for science
Three Second Prizes of the 578 patents granted
a n d te c h n o l o g y p r o g r e s s . T h e C o m pa n y
National Science and Technology Wuhan Textile University
undertook 20 science and technology projects Led or participated in the
Progress Award formulation of 84 national and
at the provincial level or above and obtained In 2025, the joint research project between Lu Thai and Wuhan Textile University on “Basalt Fiber Core-Spun Yarn Spinning
industry standards
copyrights. Additionally, it led or participated Ministerial Science and Technology China National Textile and Apparel Council.
in the formulation of 84 national and industry Progress Awards
standards.
Qingdao University
Developing scientific and technological R&D platforms The Company signed a strategic collaboration agreement with Qingdao University in 2016 to carry out in-depth cooperation with
the university in scientific research, talent cultivation, and social services, thereby contributing to socioeconomic and technological
development.
The Company highlights the building and development of scientific and technological innovation platforms, establishing core technology
platforms in the major phrases of research, design, and test to improve core technologies in the whole process. In terms of scientific research, Qingdao University and the Company have jointly established the “Lu Thai Group--Qingdao
University Research Center” and the “National Collaborative Innovation Center of Key Technologies for Textile Industry” to be
dedicated to the research of industrial textile and marine biomass fiber.
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, Shandong Provincial In terms of talent cultivation, the Company has set up the “Lu Thai Scholarship” in the university and the “Lu Thai International
Engineering Technology Research Center, and Shandong Big Data Industry Innovation Center, Lu Thai Talent Reserve Class”. As a result, a number of brilliant students from textile universities have been attracted to Lu Thai and
Engineering Technological Institute has worked with production lines, for yarn-dyed fabric, knitted fabric, become the backbone of the Company.
Textile garment apparel, printing and dyeing, and functional fabric to conduct explorations. It has been dedicated to
research platform 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. Shandong University of Technology
Lu Thai Engineering Technological Institute has capitalized on the design resources of the national industrial The Company has cooperated with the Shandong University of Technology in establishing the Lu Thai School of Textile and
design center, the Shandong Provincial industrial design center, an Italian designer’s workshop for fabric Apparel, thereby promoting organic industry-education integration, collaborative innovation, and integrated industrial-educational
design, and the enterprise brand design center to build a textile and apparel design platform. The platform development.
Textile garment has integrated textile and garment trendy design, textile new material design, popular fabrics design and
The Company has also worked together with the university to establish laboratories and share research apparatus and platforms,
design platform garment brand design, which represents the major backbone of the enterprise’s independent brand
building and promotes the Company to take leap from creation to creativity. achieving research integration in terms of the scientific program development and project application.
A team of part-time teachers, including Taishan Scholars, senior experts of the Company, and excellent technological talent, has
Lu Thai owns a complete set of testing devices and equipment for textile materials, fabrics, and garments, as been built to achieve the integration of teaching resources of the university and the Company.
well as dyeing and finishing auxiliaries. It is equipped with laboratories that meet international standards,
including the constant temperature and humidity laboratory, textile material testing laboratory, fabric and The Company has utilized the comprehensive strengths of both sides to introduce more practice and internship channels for
Textile garment
garment laboratory, and chemical analysis and synthesis laboratory. Also, it has an experienced professional students. It donates RMB1 million to the university for collaborative talent cultivation every year. Meanwhile, the “Lu Thai
testing and testing team that is familiar with domestic and overseas standards. As a result, Lu Thai has made every effort
experimental Scholarship” has been set up to encourage students to work hard, achieving “joint talent cultivation” between the university
to establish an integrated testing and inspection platform in the textile and apparel industry at home and
platforms abroad.
and the Company.
Energy Conservation and ESG Report 2025
Chairman's Statement About the Company ESG Governance Products and Services Production Operations Employee's Rights and Benefits Community Engagement Key Performance Indicators
Environmental Protection Lu Thai Textile Co., Ltd
Shandong Vocational College of Science and Technology
Technological research and development
In 2022, the Company engaged in strategic discussions with Shandong Vocational College of Science and Technology and signed
a strategic cooperation agreement to jointly establish an overseas “Luban Workshop” for the joint cultivation of international Lu Thai Textile adhered to an open concept for technology R&D and continued to deepen industry-academia-research collaboration. Through
talents. parallel efforts in independent R&D and joint research, vigorous development of green and low-carbon technologies, and continuous
optimization of clean production models, we comprehensively enhanced our level of green and sustainable development. Over the years, the
Company has obtained more than 500 patents, including 27 projects that have received national and provincial-level awards for scientific and
Dezhou University technological progress in energy conservation.
In 2025, the joint project between Lu Thai and Dezhou University on “Key Technologies and Industrialization of High-Loft Plush
Yarn Production Using Silk and Cashmere Color-Spun Blends” received the Second Prize of the 2025 China National Textile and
Apparel Council Science and Technology Progress Award.
Key R&D projects
“Development and Application of Green Low-carbon Dyeing and
Finishing Processing Technologies” project
In collaboration with textile universities and strategic dyeing and finishing auxiliary partners, the Company has conducted
coordinated research and development supported by core technologies including ecological scouring and bleaching, high-efficiency
soaping, low-carbon sizing, ecological wet crosslinking, ecological softening, and ecological moisture-wicking finishing. By utilizing In 2025, the Company launched 24 company-level technological research projects and 112 department-level research topics. Company-level
natural and regenerated materials alongside new eco-friendly dyes and auxiliaries, the Company has pioneered innovative green technology research projects are primarily focused on addressing bottleneck technologies and building forward-looking technology reserves.
low-carbon dyeing and finishing processing technologies, reducing energy consumption and pollutant emissions across the entire Notably, research into casual apparel style design and sewing and processing technologies — established in response to market demand
dyeing and finishing process and significantly lowering the environmental carbon footprint of manufacturing operations. Through for casualwear products — has achieved significant progress, providing robust technical support for the development and promotion of the
full-chain low-carbon enablement, the project drives the transformation of the textile industry from “scale-driven growth” to Company’s casualwear product lines.
“green quality-led development”, contributing to the establishment of a modern industrial system that is resource-conserving
and environmentally friendly – and advancing the Company’s contributions to national ecological progress.
Technological discussions with suppliers
In April, a delegation from Transfar Chemicals’ Textile Chemicals Division visited
“Research and Industrialization of Differentiated Casual Fabric us to conduct technical exchanges. Chief Engineer Jin Ze provided a detailed
Processing Technologies” project introduction to the classic cases of Transfar’s technical solutions, while Dr. Li
Lei from Transfar Chemicals delivered a report titled Mechanisms of Fluorine-
In collaboration with textile universities and equipment manufacturers, the Company has conducted joint research precisely
Free Water Repellency and New Technology Developments.
aligned with contemporary consumers’ demand for natural comfort, environmental sustainability, and conscious fashion.
Breaking through the limitations of conventional casual fabric processing, the project delivers end-to-end technical upgrades
through natural washing, enzyme impact treatment, and physical shaping processes – producing differentiated casual fabrics that In May, we conducted technical exchanges with the China region of Archroma.
combine natural aesthetic texture, long-lasting comfort, and low-carbon eco-friendly attributes. This initiative injects distinctive Technical experts from Archroma delivered presentations on topics including
style and sustainable value into casual apparel, drives the casual fabric industry toward a “low-pollution, high-value-added, highly Advances in Synthetic Fiber Dyeing, Key Aspects of Fiber Dyeing, and Functional
competitive” model, and provides a practical example of style innovation combined with ecological responsibility for the high- Finishing Technologies, and engaged in discussions with our technical personnel.
quality development of the textile industry – demonstrating the Company’s commitment to diversified fabric development and
sustainable growth.
Intellectual property rights protection
I n 2 0 2 5 , t h e G ro u p co m p l ete d 1 , 2 7 8
technical transformation projects,
The Company places great importance on intellectual property (IP) protection, continuously
continuously enhancing the capabilities
improving its IP protection framework, building a dedicated IP and patent protection team, and
of production equipment and process
establishing trademark management regulations and patent application management procedures.
technologies to provide a solid foundation
The Company resolutely opposes infringement of trademark rights, patent rights, copyrights, and
for the Company’s diversified production
other forms of intellectual property, and continuously enhances the effectiveness of its IP protection
activities.
management. In 2025, the Company applied for three government projects at the national, provincial,
and ministerial levels, developed 96 new products and new processes, conducted 24 technological
improvement projects, obtained 30 authorized patents, and led or participated in the formulation of
one national standard and eight industry standards.
Energy Conservation and ESG Report 2025
Chairman's Statement About the Company ESG Governance Products and Services Production Operations Employee's Rights and Benefits Community Engagement Key Performance Indicators
Environmental Protection Lu Thai Textile Co., Ltd
Product innovation 【Case】Stacked-Mirror Functional Products
Over its 38 years of development, the Company has consistently relied on its outstanding capabilities in product development and
commercialization to secure market position. Customers are currently placing increasing emphasis on product attributes such as environmental Refined on the outside, engineered within
friendliness, casualization, differentiation, and high performance. In line with development trends in the textile industry, we focused on ·Dual-material construction: warp-direction cotton combined with a precision-blended weft of cotton and linen, nylon,
customer needs to advance technological innovation and technological upgrading, continuously carried out product R&D and upgrades and Coolmax,or other fibers in varying yarn counts;
iterations, and provided customers with high-quality products with a high cost-performance ratio that meet market demand.
·Dual-weave structure: a fine high-thread-count plain weave outer layer paired with a weft-double and specialty float inner layer,
Raw material innovation: Sustainable exploration, development and cooperation in terms of raw materials; the renewable, degradable, complemented by a unique garment-wash finishing process;
recyclable, and sustainable product series that are featured by the natural fiber and regenerated cellulose fiber series and the bio-based ·The “dual system” together creates a fabric that is smooth and polished on the
Outer layer of fabric
series.
outside, with structural resilience built in. Inner layer of fabric
Technological Innovation: In-depth research into processing and manufacturing technologies to progressively achieve green full-process
production with reduced water consumption, energy use, and emissions; pursuing excellence and reinforcing the effective support of green Both “courtesy” and “presence” Human skin
and eco-friendly technologies for product quality. ·The smooth, refined outer layer gives the wearer a poised, elegant, and effortlessly stylish appearance;
Product innovation: Continuous exploration of innovative full-life-cycle application solutions for textile products, and continuous ·The inner layer features raised floats, exceptional softness, subtle texture, and superior comfort — keeping the wearer feeling
introduction of new and environmentally-friendly product series that are skin-friendly and comfortable, elastic, easy-to-manage, and good refreshed and at ease.
for health to the market by continuous updating multicomponent products, such as natural fiber, regenerated cellulose fiber, and ultra soft
texture fiber.
【Case】Carbon Capture Fiber Fabric Quality control
The Company adheres to the principle of “quality is the most important element of enterprise survival and development”, and continuously
Through the capture of CO2 from industrial waste gases, followed by liquefaction and purification, green methanol is produced
strengthens quality control with the purpose of “meeting the needs of customers and the market”. In accordance with GB/T 19001-2016
via reaction with H2. This is subsequently converted into green ethylene glycol (EG), which is then polymerized with PTA to form
Quality Management Systems, the Company’s Quality Management Department formulates quality indicators, translating customer feedback
green PET. Using Lu Thai’s proprietary specialized processes, a carbon capture fiber fabric has been developed.
into quality requirements to precisely control both process quality and result conformity. The quality management assessment mechanism has
+H2
One ton of carbon capture EG captures 1 ton of CO2 CO2 capture CO2 liquefaction CO2 purification Green methanol been improved to incentivize continuous improvements in product quality across workshops.
One ton of carbon capture DTY captures 364 kg of CO2
Carbon capture PET
+PTA
Green EG
Quality Assurance Standards system
【Case】Recycled Fiber Fabrics
Standard system for
Raw Material
physical and chemical
Process Control Room indicators
Programming and Alignment among GB,
Control Office
JIS, AATCC/ASTM, ISO
standards, Lutai’s internal
Using recycled pulp derived from partially or fully post-consumer textile waste, together with FSC-certified wood-sourced materials
control standards, and
actual data
as raw inputs, regenerated fibers are produced through an improved viscose process. Standard system for
The resulting fibers carry dual RCS and GRS certifications. process inspection
Desizing rate, elasticity, heat-
Standard system for
appearance inspection
setting process, yarn color,
Treated with Lu Thai’s liquid ammonia and other specialized finishing processes, the
Grey fabric and finished
color fastness, and strength
products: batch color variation
resulting fabric offers excellent moisture absorption and breathability, a soft hand feel,
classification, grading
Product Pre-control
evaluation, and responsibility
good luster and shape retention, and is biodegradable — placing minimal burden on
determination
Central Laboratory
Team
the natural environment. It is an ideal choice for premium shirting fabrics. Standard system for
raw yarn inspection
Correlation between color
difference, hand feel,
elasticity, twist, strength,
【Case】Rain-Dew Linen Fabric 2
and fabric performance
indicators
The traditional method of “using the sky as a factory and dew and rain as craft” endows dew-
The Company holds production meetings every day to address any problems encountered during production.
retted linen with an irreplaceable and distinctive character. Its signature grey-green tones — naturally
formed in color and texture — evoke a sense of refined antiquity, cool restraint, and quiet elegance. The Company strengthens the process compliance inspection on each process, and supervises and manages it through sampling and
The vivid “dew spots”, reminiscent of ink-wash brushwork or the imprint of passing time, preserve tracking methods.
linen’s original rugged and natural grain in its most unaltered form. The Company actively communicates with customers and absorbs their valuable feedback on product quality.
With exceptional moisture absorption and breathability, the fabric rapidly wicks perspiration and The Company organizes professional training for quality management personnel to continuously improve the quality awareness and ability
disperses moisture upon contact with the skin, delivering outstanding ventilation and dryness. The natural fermentation process of all staff.
facilitated by dew and rain yields purer fibers with inherent antibacterial and hypoallergenic properties. This fabric brings a The Company has a CNAS laboratory certified by the state, achieving independent testing of some indicators.
distinctively understated aesthetic to garments and home textiles, making it ideally suited to consumers who embrace individuality The Company sends 100% of textiles to professional organizations (e.g. ITS, SGS, BV, Keken) for a safety inspection to make certain that these
and a natural lifestyle — fulfilling their appreciation for unique aesthetics and refined taste. textiles are in line with market laws and regulations, standards and customers’ RSL requirements.
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Environmental Protection Lu Thai Textile Co., Ltd
服装类展会
The Company invites customers to visit or participate in new product releases or important events to enhance customer relationships. In
Customer Communication and Exchange Laboratory
Production lines Qualification rate
Yarn 99.99%
In 2025, Lu Thai Textile achieved a 99.99% Grade A storage
rate for spun yarn, a 99.22% acceptance rate for yarn-dyed Yarn-dyed fabric 99.30%
products, a 97.16% first-grade storage rate for knitted
Knitted fabric 97.47%
products, a 98.07% delivery rate for piece-dyed finished
products, a 96.85% delivery rate for functional fabric
Piece-dyed fabric 97.95%
finished products, and a 99.98% delivery rate for garments.
Functional fabric 95.90%
The Company regularly organizes exhibitions and product promotion events to help customers gain a better understanding of its high-quality
Garments 99.99% products and services.
Customer service and maintenance
The Company adheres to a customer-centric approach and comprehensively enhances its customer service capabilities.
Constant care
The Company communicates with customers through multiple media, such as email, WeChat, and phone, to learn customers’ demands and
suggestions.
The Company formulates the standard procedure for handling customer complaints in time, so as to protect the legal rights and interests of
customers.
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 2025, a total of 446 customer visits were conducted, covering
countries including Japan, the United States, and Bangladesh.
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No. Zone Item name Location Customer satisfaction survey and improvements
design, and enhancing the authenticity, rigor, and objectivity of the survey. Based on the survey results, a satisfaction report is generated to
Americas
Customer satisfaction survey for this year:
• Analyze changes in the customer procurement proportion, and interpret customer procurement behavior based on order data.
to key customers.
MUNICH FABRIC START, Munich International Trade Fair for Apparel Fabrics and
Munich, Germany
Pre-sales Consultation and Information Access
Lu Thai Satisfaction Model—Basic Model
Delivery process
Qx
Qi
Product performance
Qm
Qc
Price
Tokyo, Japan Qz Satisfaction Loyalty
Bangladesh International Exhibition on Textile Fabrics and Accessories, Yarns,
and Textile Machinery DIFS After-sales service
Vietnam International Trade Fair for Apparel, Textiles and Textile Technologies
Ho Chi Minh City, Vietnam
Asia
Customer relations
Indonesia International Textile and Garment Machinery Exhibition (INDO
Jakarta, Indonesia
The total number of customers surveyed for fabric products this year was 253. A total of 220 questionnaires were collected, with a response
rate of 87%. The final score was 84.08; The total number of customers surveyed for apparel products was 109. A total of 90 questionnaires were
collected, with a response rate of 83%, which was significantly higher than last year. The final score was 78.6.
VTG Vietnam International Textile and Garment Fabrics and Accessories
Exhibition
Annual average customer satisfaction scores for each Annual customer satisfaction scores for apparel
Domestic
comprehensive Corporate brand image 88.43 Customer relations 86.9
R&D 82.28 Corporate brand image 80.7
Development Status Department 2024 2025 Products 86.64 Services 80.4
Price 70.23 Design 77.7
Global Marketing Department
Number of potential
Delivery 83.82 R&D 76.2
Apparel Marketing Department 24 35
customers
Services 87.42 Delivery 75.7
Lulian Marketing Department / 13
Customer relations 91.50 Price 69.9
Global Marketing Department 680,000 meters 1.09 million meters
Overall satisfaction levels are relatively high across the Overall satisfaction levels are relatively high across the
Order volume Apparel Marketing Department 20,600 pieces 36,100 pieces dimensions of customer relationship management, corporate dimensions of customer relationship management,
brand image, service, and products. Products, and corporate brand image.
Lulian Marketing Department / 111,200 meters
Production 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 societal impact while maintaining sound operations,
comprehensively safeguarding the rights and interests of all stakeholders and achieving long-term
sustainable development.
UN Sustainable Development Goals
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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. Lu Thai insists on the principle of “safety first, prevention first and comprehensive management”, and implements
national, local and industrial policies, laws and regulations and standard requirements. The Company consciously carries out all rules and
regulations of production safety and invites relevant stakeholders to supervise their implementation.
Safety management system and institutional development Various types of safety training
The Company continuously improves its standardized production safety system, conducts internal safety standardization reviews,
and carries out supervision and inspection of implementation across all facilities.
The Company has set up a Safety Production Committee and an Accident Emergency Rescue Leading Group around the Safety
Inspection Office, with a total number of 68 safety management personnel.
The Company has established the safety production targets management responsibility system and signed the Responsibility
Letter for Safety Production Targets Management at all levels. Besides, the Company has broken down the accident control targets
by levels and implemented strict assessments of personnel at all levels to ensure the fulfillment of the safety production control
targets.
The Company’s Safety Control Targets in 2025 First lesson on resumption of work
? Eradicate fire risks and personal casualties
Diversified “Safety Production Month” activities
? Prevent the accidents of major environments and occupational health and safety
? Eliminate grand electromechanical equipment accidents During the “Safety Production Month” campaign in June 2025, the Company conducted a variety of activities such as publicity board design,
? Avoid traffic accident special training on safety production, inspections on potential safety hazards, award-winning essay contests, and emergency response drills. All
employees actively participated in these activities, and their safety awareness was effectively improved.
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.
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 - identifying safety hazards around us”, and created a total of 21 boards.
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 2025, 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 2025, 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 more than 22,000 safety hazards. During the Reporting Period, all risk hazards were eliminated.
A total of 280 teams from various departments and subsidiaries participated in the “Inspection, Prevention, and Promotion” safety
hazard investigation activity, with 6,000 participants. A total of 3,250 hazards were identified, and 22 outstanding teams were selected.
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 2025, such as 15 training sessions for new employees, 90 safety training
sessions for all employees, six training sessions for special operators, two training sessions from invited external experts, special equipment and
safety management personnel 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 handle
emergencies, and ensures smooth life channels”, aiming to prevent and defuse major risks, eliminate potential safety hazards in a timely
manner and effectively curb production safety incidents, and finally create a sound environment for safety production. In the whole year of 2025,
the Company conducted more than 100 various safety training sessions with over 12,000 trainees.
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We carried out the “Everyone Values Safety” presentation campaign. Each factory recommended 52 outstanding presenters,
Fire safety management
who delivered video presentations on site.
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 caused by fire occurrence and fire rescuing.
The Company’s Security Department conducts targeted annual training sessions on fire safety knowledge, fire extinguishing and evacuation
drills, training for key and critical areas, and hands-on training for volunteer firefighters on firefighting equipment. These initiatives aim to raise
overall fire safety awareness and enhance emergency response capabilities. Each department strictly adheres to the Hot Work Management
System, the Fire Inspection System, and the Electrical Safety Management System to establish a solid fire safety firewall.
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
The Company organized the “Emergency Drill Competition”, with 13 teams participating. After evaluation by experts from Intercom, the platform creates an information-sharing and intelligent management system for security and fire protection. This enhances
the Zichuan District Emergency Management Bureau and safety inspection personnel, two first prizes, three second prizes, three-dimensional safety management, intelligent emergency support, and coordinated emergency response, improving the efficiency of the
five third prizes, and three participation prizes were awarded. Company’s fire safety and security management. This year, we added 66 sets of gas alarm systems and installed a total of 268 detectors in areas
such as factories and canteens, further optimizing our pre-control of fire safety.
Safety production emergency management
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 2025, the Company organized each plant to conduct emergency response drills, including 43 special response drills
and 306 on-site disposal drills, and carried out a total of 15 “Emergency Rehearsal Training” in the “Safety Production Month” activities.
Video Monitoring
Through various emergency drills, the Company has enhanced the emergency response capabilities of all department employees, improving
self-rescue and mutual aid abilities to safeguard lives and property.
Wireless Intercom
The Company is conducting an emergency drill
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Environmental Protection Lu Thai Textile Co., Ltd
Smart Firefighting
Fire safety training
AI Engine
Volunteer firefighter training
Indicators Completed
Visible fire monitoring 13589.96 (hours)
Fire safety hazard inspection 3,305 (items)
Employee training on critical parts protection 2,091 trainees
Fire extinguishing and evacuation drills 269 sessions
Test on automatic sprinklers system 14,142 (points)
Major fire safety incident Zero (times)
Firefighting and evacuation drill
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Environmental Protection Lu Thai Textile Co., Ltd
Fire Safety Bulletin Board
Firefighting and evacuation drill
Fire Safety Knowledge Outreach Activities in Work Teams
Fire Safety Cartoon
The Company organizes “119 Fire Safety Publicity Month” activities
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Chemical management
Procurement, storage, and usage management
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 Chemical Testing
System for Hazardous Chemicals, the Regulations on the Supervision and Inspection of Hazardous Chemicals, the Safety Management System
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 management to be standardized, detailed and normalized.
? 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 hold valid business licenses, production permits, and
Production process control:
Training programs are organized across all facilities to ensure employees are fully informed about the chemicals in use. Where customers have
hazardous chemical registration certificates, and must sign an Environmental
specific requirements, relevant products are strictly used in accordance with those requirements — for example, using dyes and auxiliaries that
Compliance Declaration before being approved as qualified suppliers.
meet ZDHC Conformity Level 1 or above.
? When each chemical is first purchased in the year, a complete MSDS list should be
Each batch of finished products shall be sent to a professional third-party testing institution for restricted substances safety testing. Only after
requested from the supplier and pasted at the chemical usage and storage site.
passing the test and receiving a certificate of compliance from the Quality Management Department can the products be packed and shipped.
? All user departments strictly regulate storage quantities in accordance
with the specific properties of each chemical. Comprehensive
hazardous chemical safety management systems and emergency
response plans are established, with designated personnel assigned
responsibility for management.
Product Safety Testing
? Each factory using chemical products must conduct at least one
chemical safety training per year, informing employees of the
properties and hazards of chemicals in use, as well as emergency
response and self-rescue procedures in the event of spillage or
contact with eyes or skin, and supervising employees to ensure
compliant storage and handling. Terminal management:
The Company tests the discharged wastewater and sludge for toxic and harmful chemicals according to the wastewater guidelines of Zero
? Chemical administrators must obtain professional certifications Discharge of Hazardous Chemicals (“ZDHC”) twice a year to ensure zero discharge of toxic and harmful chemicals.
through regular external training.
Restricted substances control
As global attention to environmental protection and product safety continues to grow, green production and eco-friendly products have become
an industry-wide development trend. As an internationally oriented manufacturing enterprise, Lu Thai proactively adapts to these evolving
requirements by establishing a full-process chemical management and control mechanism.
Source control:
In accordance with the requirements of laws and regulations, standards, instructions, and customers’ restricted substances list (“MRSL”) of
each nation and region, the Company has established a chemical approval system and the Manufacturing Restricted Substances List (“MRSL”)
which is stricter than market regulations/standards. When chemicals for production pass the experiment test, the Company will entrust the
third-party testing organization to conduct the test on toxic and harmful chemicals. Only suppliers with test results in conformity with the MRSL
are included in the list of qualified suppliers and can then be used for bulk purchase. Meanwhile, the Company strengthens the application of
efficient and environment-friendly dyeing auxiliary to eliminate the production of toxic and harmful chemicals from the source. Wastewater and Sludge Testing Report
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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 Supply chain management
Company publishes wastewater DETOX emission data. The Company also maintains active communication and collaboration with suppliers,
customers, third-party testing organizations, and non-governmental organizations to continuously improve chemical management standards. 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
information flow in all processes of the supply chain, improved the efficiency of raw material supply, and made the purchase process more
Data Releasing Platform
standardized and transparent.
Supplier 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 ISO9001 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.
Luthai Textile Chemical Management Before approval, on-site audits are conducted for suppliers to assess whether their production, quality control processes, and social
Input management responsibility performance comply with relevant certification standards. Only after product use and testing meet requirements can they be listed
as approved suppliers. Prior to procurement and usage, suppliers are required to sign documents such as the Quality Agreement, the Supplier
Selection of new suppliers Code of Conduct, and the Environmental Compliance Declaration to protect the Company’s legal rights and interests.
Daily evaluation of suppliers Compliance screening of
On-site audit of suppliers Material Safety Data Sheet
Approval/removal of qualified Chemicals (“MSDS”)
Government
suppliers Textiles Initial identification of harmful
Non-governmental organizations
· Supplier Quality and Safety Wastewater
Customers and brands chemicals according to the type
Assurance Agreement Sludge
· Declaration of Environmental of auxiliaries
Conformity of Chemicals Third-party testing
· Declaration of Environmental Analysis and tracking of testing
Conformity for Raw Materials data
and Auxiliaries
Management of chemical
本印章样式仅
Understand relevant laws and Create a list of concerns on Ways to identify harmful 供参考复印无
suppliers
效
regulations and documents harmful substance chemicals
Production process
Safety Management Process of Textile
Chemicals 本印章样式仅供参考复印无效
Provisions for the Management of Tap water Substitution of dyeing auxiliary
Departmental Chemicals Dyeing drainage Reduction of dyeing auxiliary
Provisions for the Management of
Warp sizing drainage Emission reduction Environmental Compliance Declaration
Procurement of Sizing Agents, Dyestuffs Quality Agreement
and Auxiliaries Organization of drainage Short process...
Provisions for the Management of Safety Our current suppliers of raw materials, auxiliary materials, ingredients, and other items include large, medium, and small enterprises. We treat
Control for Warehouse Management all suppliers impartially and equally, achieving mutual benefit and win-win outcomes, and pursuing common development.
Department
Management of procurement, storage, Process testing and validation Green technology Routine supplier management
use and other aspects of chemicals
In daily management, the Company conducts annual surveys on supplier profiles and performs periodic supervision and
Output-end management
audits to maintain real-time oversight of their quality and CSR management.
Personnel Material management
Brand customers
Chemicals
Water quality Participation in green activities Information disclosure through IPE
Human rights and labor Production management
Sludge
Products Supplier audits
Insurance and benefits Quality control
Creation of a testing data list Participation in green activities Information disclosure through IPE
Luthai reduces the level of pollutants through efficient chemicals management and good process control. Meanwhile, the Company works Equipment and facilities EHS management
together with relevant parties such as major brands in the supply chain, suppliers, chemical industry and non-governmental organizations to
reduce the impacts on the environment.
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In 2025, a total of 55 suppliers were audited, of which 54 passed and one failed. The annual supplier audit plan was fully completed.
For issues identified during the audits, we supervise suppliers to carry out corrective actions following the process below, with continuous
follow-up to ensure implementation.
Suppliers conduct a comprehensive analysis of deficiencies identified during the audit to determine
Audit Deficiency Analysis
the root causes and develop targeted corrective actions.
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.
Implementing Corrective
Suppliers implement corrective actions step by step according to the audit plan. Categorized Evaluation
Measures
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.
Supply Chain Quality Improvement
Summarizing and
Sharing Corrective Action Suppliers summarize the lessons learned during the corrective process and voluntarily share them.
Experiences 1 Develop and implement a supplier audit plan to emphasize our specific requirements for suppliers in
various aspects through audits.
Require suppliers to promptly rectify issues identified during 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.
Share the latest management concepts and best practices with suppliers, gather their feedback and
suggestions, and collaborate on addressing quality issues.
Supplier Audit Report
Communicate Lu Thai’s quality philosophy and requirements, provide technical guidance and training
to help suppliers enhance their quality management, and encourage them to obtain relevant system
certifications.
Collaborate with suppliers on innovative product development to achieve mutual benefits.
Case
The Company also conducts semi-annual and annual supplier assessments according to different raw material suppliers, and classifies suppliers
based on the assessment results.
Tier I Supplier (90 points and Appropriately increase purchase volume
above)
At the beginning of the year, the Company provided
Tier II Suppliers (75–90 points) Normal cooperation
systematic training on in-factory transportation
Result Application and operational safety for its partnered logistics
Tier III Supplier (65–75 points) Send Information Notice, rectify within deadline
companies.
Tier IV Supplier (below 65 Suspend supply, send Information Notice, rectify within
points) deadline, and disqualify if requirements are not met
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Procurement management Internal control
In terms of procurement, whether to invite bids is determined based on different materials and the annual procurement amount. If bidding is The internal control evaluation is carried out by the Audit Department of the Company every year, so as to timely identify the loopholes and
required, the Bidding Office will conduct publication and assessment to select winning bidders. The Procurement Department drafts contracts risks in the supplier management procedure, which lays a solid foundation for the building of a responsible supply chain.
based on the bidding documents and the bid documents of the winning bidder, and conducts subsequent procurement after being reviewed
by the Legal Affairs Department and approved by the President. For those that do not require bidding, the Procurement Department selects
suppliers from the List of Qualified 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 Bluesign, GOTS/OCS, and GRS. We continue to promote the use of
The main contents of internal control evaluation include:
recycled polyester, recycled nylon, and recycled cotton to improve resource utilization.
Procured materials are subject to full inspection or random sampling inspection based on category, ensuring that non-conforming inputs are Whether a reasonable supplier Whether the suppliers are selected Whether the supplier management
controlled at the source. evaluation and access system according to the principle of fair system and supplier elimination
is established to examine the and just competition, and the system are set up, so as to
authenticity and legitimacy of quality assurance agreement is conduct real-time management,
the suppliers’ qualification and signed with the suppliers on the assessment and evaluation on the
reputation. basis of effectively preventing the quality, price, delivery timeliness,
risk of fraud. supply conditions, qualification
and reputation, operating status of
materials or services provided by
suppliers, and to make reasonable
selection and adjustments to
suppliers based on the assessment
results.
Raw Material Inspection Report
Warehouse management
The Company maintains dedicated warehouses for raw cotton, yarn, chemicals, and other materials, implementing classified storage
management for all categories of materials and strictly adhering to relevant regulations as well as the appropriate environmental conditions
and temperature requirements for each raw material.
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.
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Environmental Protection 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 joint 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 in building a globally beneficial supply chain ecosystem that supports the
sustainable development of human society.
UN Sustainable Development Goals
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Environmental Protection Lu Thai Textile Co., Ltd
Environmental management indicators achievement
Lu Thai Environmental Management Achievements in 2025
Data related to wastewater and sewage
Indicator (Unit) 2020 2025 Reduction Compared
to the Baseline Year
COD (Chemical Oxygen Demand) in
discharged wastewater (ton)
Ammonia nitrogen content in
discharged wastewater (ton)
Industrial wastewater discharge (10,000
cubic meters)
Air pollutant emissions
Indicator (Unit) 2020 2025 Reduction Compared
to the Baseline Year
Sulfur dioxide in emitted exhaust gas
(ton)
Nitrogen oxides in emitted exhaust gas
Addressing climate change
(ton)
Climate change is not only an environmental issue, but also a development issue. As a global textile enterprise, Lu Thai actively regards
addressing climate change as an important action for sustainable development, vigorously promoting energy conservation and carbon
Waste discharge reduction in production and operation, and contributing to global climate governance.
Indicator (Unit) 2020 2025 Reduction Compared
to the Baseline Year Risk analysis and response measures
Hazardous waste generation (ton) 51 41 19.61% The Shared Socioeconomic Pathways (SSPs) are a powerful tool introduced by the Intergovernmental Panel on Climate Change (IPCC) in 2010 to
describe global socioeconomic development scenarios. SSPs were developed based on Representative Concentration Pathways (RCPs) and are
Non-hazardous waste generation 14,552 12,115 16.75% used to quantitatively describe the relationship between climate change and socioeconomic development pathways, reflecting the adaptation
(sludge) (ton) and mitigation challenges that future societies may face in response to climate change.
The SSP2 pathway is the most aligned with China’s current development status. The Group’s scenario analysis includes an optimistic climate
Energy consumption density change scenario, where warming remains below 2?C—SSP 1-2.6 (with a projected 1.8?C increase by 2100 compared to pre-industrial levels), as
well as a pessimistic climate change scenario, where warming exceeds 4?C—SSP 5-8.5 (with a projected 4.5?C increase by 2100 compared to pre-
industrial levels).
Indicator (Unit) 2020 2025
Reduction Compared
to the Baseline Year
Impact analysis of risks and response measures
Greenhouse gas emissions intensity
(tCO2e/million revenue)
Based on our preliminary assessment of risk factors and consideration of the impacts of a low-emission scenario (1.8?C) on carbon pricing,
Total energy emission density (tons of
standard coal per million revenue) factors, we have selected the following climate-related risk factors for further analysis and have outlined the corresponding response measures.
Note: The baseline year for the above data is 2020.
Energy Conservation and ESG Report 2025
Chairman's Statement About the Company ESG Governance Products and Services Production Operations Employee's Rights and Benefits Community Engagement Key Performance Indicators
Environmental Protection Lu Thai Textile Co., Ltd
Risk Type Risk Name Risk Description Risk Impact Responses
The Group’s production bases ·Formulate Emergency Response Plan for Work Safety Incidents to establish an emergency command system, set up an emergency office, and clarify
are located in the East China Natural disasters such as heavy rainfall, emergency personnel and responsibilities to achieve a rapid response to extreme weather. The Emergency Command Team is responsible for command
region, where extreme weather floods, and severe typhoons may operations and works with the production department to organize personnel for safety inspections of key facilities and equipment, while the logistics
events caused by climate change h a v e l a st i n g e f fe cts o n t h e G ro u p. department ensures material support.
include but are not limited During extreme weather events, the
·Before extreme weather: Monitor weather changes closely, conduct safety inspections, and rectify hazards promptly. Prepare protective devices and
to typhoons, heavy rainfall, transportation of raw materials and
emergency equipment in advance, ensure readiness of emergency teams and power supply, plan employee commuting arrangements, material and
droughts, and floods. Under a products may be disrupted, employee
product transportation, and schedule production and shipments in advance.
global 1.5 ° C warming scenario, commuting may become difficult, and
Extreme the frequency of once-in-20-years risks such as power outages, water ·During extreme weather: Reduce production on typhoon/heavy rainfall days, halt outdoor operations, suspend work as needed, assign personnel to
weather h ea v y p re c i p i tat i o n e ve n ts i s supply interruptions, and steam supply monitor weather conditions in real-time, prioritize employee safety, and ensure emergency supplies are adequate.
(typhoons, expected to increase by 10%, while disruptions may arise. For example,
·After extreme weather: Conduct damage assessments immediately, draw lessons from the event, minimize losses, and accelerate production recovery.
floods, heavy the frequency of once-in-100- typhoons may lead to production halts
rain) years heavy precipitation events and property damage. Additionally, ·Strengthen fixed asset management: Conduct regular inspections and maintenance of production equipment and facilities, purchase property insurance
is expected to increase by 20%. during the rainy season, red rainstorm for assets in high-risk areas, and implement additional protective measures to reduce losses from uncontrollable risks.
Under a 2 ° C warming scenario, wa r n i n g s m a y re s u l t i n o b st r u cte d ·Regularly analyze supplier risks, develop stocking strategies for key raw materials, optimize transportation methods and routes for critical raw materials,
t h e f re q u e n c y o f o n ce - i n - 2 0 - material transportation, difficulties and enhance supplier relationships to ensure supply chain stability.
years heavy precipitation events in employee commuting, damage to
is projected to increase by 22%, 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.
and the frequency of once-in-100- affecting production schedules and
years heavy precipitation events is increasing facility maintenance costs.
expected to rise by more than 45%.
A cold wave occurs when cold
Immediate risks air causes a local temperature
drop of more than 8 ° C within 24 Under extreme heat conditions, the Group
hours, with the daily minimum may need to enhance ventilation and
temperature falling below 4 ° C. A cooling in production plants and offices,
heatwave is defined as a period leading to increased energy consumption
of three or more consecutive days and operational costs. Additionally, ·Prepare peak-load shifting electricity usage plans and work arrangements in advance during peak electricity demand periods.
with maximum daily temperatures electricity demand surges may cause
·Develop backup energy solutions and pre-establish energy emergency response plans.
reaching or exceeding 35 ° C. power transmission disruptions, affecting
D u e to h u m a n a ct i v i t i e s , t h e normal production. Under extreme ·Schedule hazardous materials shipments in summer for early morning or late afternoon to avoid high-temperature periods and reduce fire risks.
probability of cold waves has cold conditions, the Group may need to
·Regularly assess supplier risks, develop stocking strategies for key raw materials, and strengthen supplier relationships.
decreased to some extent, but increase heating in production facilities
t h e i r i n te n s i t y h a s s h o w n a n and offices, resulting in higher energy ·Implement preventive measures, provide comprehensive protective equipment, and strengthen warning and reminder signage; conduct
increasing trend. Cold waves may consumption and operational costs. specialized inspections of boilers, steam systems, and other equipment on a regular basis; carry out regular inspections of slipping-prone areas in
（Heatwaves,
cause sharp temperature drops, Frozen roads due to cold weather may facilities such as stairways, ramps, and passageways.
cold waves)
strong winds, rain, snow, and disrupt material transportation, leading to
·Develop emergency response plans to prevent fires, explosions, leaks, and poisoning incidents.
freezing conditions, affecting the insufficient raw material supply and direct
Group’s raw material production, production delays or shutdowns. Dry ·Ensure factory buildings and fire protection facilities are insulated to prevent equipment damage from freezing.
logistics, and power operations. weather conditions may increase the risk
·Enhance winter safety training to ensure operational safety; strengthen safety inspections of employee dormitories.
At the same time, heatwaves and of fires, explosions, leaks, and poisoning
compound extreme events (such incidents. Extremely low temperatures ·Prepare heatstroke prevention and cooling supplies in summer and minimize outdoor work.
as heavy precipitation followed by may cause equipment failures, leading
· Include high-temperature emergency response training in employee programs and conduct drills for heatstroke and other heat-related illnesses.
heatwaves) are becoming more to property damage and higher facility
frequent and intense under global maintenance costs. Furthermore, cold ·Continuously monitor employee health and conduct regular medical check-ups.
warming. The increased electricity waves and heatwaves may increase the
demand for residential cooling prevalence and severity of cardiovascular
during heatwaves may result in diseases, malaria, and heatstroke, posing
industrial electricity restrictions for health risks to employees.
businesses during certain periods.
Energy Conservation and ESG Report 2025
Chairman's Statement About the Company ESG Governance Products and Services Production Operations Employee's Rights and Benefits Community Engagement Key Performance Indicators
Environmental Protection Lu Thai Textile Co., Ltd
Risk Type Risk Name Risk Description Risk Impact Responses
The Group’s production process
requires large amounts of water, The Group’s water sources are
which is used in dyeing and municipal tap water. Water shortages may
finishing, printing, and equipment force reductions in production capacity, ·Set reasonable water conservation targets and implement improvement measures.
cleaning. As global water scarcity temporary shutdowns, or the adoption of
·Establish water conservation goals, reduce freshwater consumption, and increase wastewater reuse.
worsens, particularly in drought- additional water management measures
Water scarcity
prone and water-stressed regions, such as water recycling and water-saving ·Develop a comprehensive water resource management system and assessment framework.
water shortages pose an increasing technologies. This may lead to higher
risk to the stability of textile production costs or lower operating
production and cost management. revenue.
According to the China
Long-term risks Meteorological Administration’s
G l o b a l S u r f a c e Te m p e ra t u r e
Dataset Analysis, global warming
Temperature variations may affect the
has continued since 2015, with
stability of certain chemical reagents,
records for the hottest year on
requiring adjustments to production
·Implement energy-saving renovations for air conditioning and ventilation systems in production facilities and offices to improve energy efficiency.
record being repeatedly broken.
parameters or additional temperature
The rise in average temperature ·Provide adequate heat protection materials for employees in summer and conduct annual health check-ups.
control measures, thereby increasing
due to global climate change
production costs. Rising temperatures ·Include high-temperature response training in employee programs and conduct emergency drills for heatstroke and other heat-related illnesses.
Rising average may bring multiple challenges
necessitate enhanced ventilation and
temperature to textile enterprises, including
cooling in production plants and offices, ·Avoid outdoor work during midday high-temperature periods to ensure safe production.
production activities, raw material
leading to higher energy consumption and ·Plan peak-load shifting electricity usage in advance.
supply, product quality control,
operational costs. Additionally, increased
and employee health and safety.
temperatures may raise the likelihood of
Temperature changes may impact
heat-related illnesses such as heatstroke,
fabric and apparel production
reducing workforce productivity.
processes, storage conditions, and
supply chains.
Carbon emission rights refer to
the legal right of enterprises to ·Establish a greenhouse gas emission management framework, set energy-saving and carbon reduction targets, and gradually reduce carbon
e m i t g re e n h o u s e ga s e s , w i t h emissions intensity and total emissions. Establish an energy conservation and emissions reduction taskforce to conduct multi-dimensional self-
each company being allocated a assessments and continuously optimize emissions reduction efforts. Additionally, require department and workshop managers to identify high-
certain quota by the government. power equipment and major pollution sources, document findings for further analysis and improvement to ensure that, beyond meeting the
Although the Group is not currently Group’s emission reduction targets, emissions are further minimized.
covered under China’s national As carbon emission pricing rises, the
·Strengthen energy conservation and emissions reduction management across all production and operations: including reviewing energy-
carbon emissions trading system, Group’s carbon trading expenditures
consuming equipment and energy use, replacing high-energy-consuming equipment with energy-efficient alternatives, upgrading high-energy
in a low-emission scenario, if the may continue to increase, impacting
equipment, and optimizing production equipment to improve energy efficiency and reduce greenhouse gas emissions.
country continues to implement its financial performance. Moreover,
Policy & Increase in carbon stricter emission reduction policies higher carbon pricing significantly affects ·Promote resource recycling by installing recovery systems (e.g., reclaimed water reuse, ammonia recovery, alkali recycling).
regulatory risks emission pricing and introduces carbon trading 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
policies for the textile industry, potentially leading to rising energy prices reducing reliance on traditional fossil fuels.
the Group may be included in the or raw material shortages, which would
carbon quota trading market. As indirectly increase the Group’s operating ·Enhance training and awareness programs to improve employee energy-saving awareness and operational efficiency, preventing unnecessary
a result, the Group’s production costs. energy waste.
facilities may need to adopt more ·Strengthen energy management and control, and strengthen assessments of energy use in production workshops.
aggressive emission reduction
·Improve production technology to enhance first-pass product acceptance rate, thereby reducing raw material and energy consumption per unit
measures or participate in carbon
product.
trading to ensure compliance
with greenhouse gas emission ·Adopt green operations by promoting paperless offices to reduce greenhouse gas emissions from business activities.
regulations.
Energy Conservation and ESG Report 2025
Chairman's Statement About the Company ESG Governance Products and Services Production Operations Employee's Rights and Benefits Community Engagement Key Performance Indicators
Environmental Protection Lu Thai Textile Co., Ltd
Low-carbon practices Energy management
Photovoltaic power generation projects
Optimization and renovation of the power system and steam pipeline network
Guided by the dual-carbon strategy, the Company has advanced load balancing in its
As of 2025, the Company’s installed solar photovoltaic power
power systems, optimization and upgrading of steam pipeline networks, and integrated
generation facilities have supplied a total of 72.59 MW grid-
optimization of energy systems—achieving significant results in energy conservation
connected electricity, accounting for 16% of the annual and carbon reduction. In 2025, total carbon emissions decreased by 2.47% year-on-year.
electricity consumption within the total installation scope,
The Company’s overall energy management is driven by technological innovation and
reducing carbon dioxide emissions by approximately 100,000 management upgrades; on the foundation of ensuring a secure and stable energy supply,
tons. this work establishes a solid basis for the Company’s green and low-carbon transition.
In response to changes in the energy structure across product lines, the Company has
optimized its energy supply systems, consolidated equipment and facilities, and achieved
Photovoltaic power generation across all industrial parks
Resources management
precise alignment between existing production capacity and energy demand — ensuring efficient energy utilization. The ongoing
optimization and upgrading of steam pipeline networks has effectively advanced waste heat recovery, enabling annual steam
savings of approximately 3,000 tons.
Lu Thai 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 Development of an intelligent energy operations and maintenance platform
as the Group-wide guidelines for resource utilization management, which all entities within the Group must strictly follow. Additionally,
each company has developed and implemented its own Resource Management System and Energy Conservation and Emission Reduction
The platform is an intelligent energy management system and data center built to the ISO/IEC/IEEE 18880 standard. It provides
Management System in accordance with its specific operational conditions. These systems facilitate standardized and systematic resource
services including data storage, real-time monitoring, visualization management, data analytics, risk control, and energy efficiency
utilization management, significantly enhancing resource efficiency.
analysis. By enabling real-time monitoring of equipment operating status, the platform fully replaces manual inspection rounds,
The Company also sets annual water conservation and energy use targets. By improving management practices and upgrading technologies, we provides accurate operations and maintenance recommendations, reduces repetitive routine maintenance workloads, can deliver
continuously optimize resource utilization methods, conduct regular audits of resource consumption, and enhance overall resource efficiency to maintenance cost savings of up to 15%, and delivers significant safety benefits.
ensure the achievement of sustainability goals.
Risk analysis and response measures
Assessment of Risks
Risk Description Risk Level Responses
and Opportunities Oil furnace flue gas heat exchange project
Overhaul the park’s power distribution
The Company’s Safety and Environmental Equipment Division conducted a
facilities annually.
water-heat balance analysis and, leveraging existing flue gas waste heat resources,
Conduct preventive tests on transformers,
Impact of power supply on installed heat exchangers to recover high-temperature flue gas heat using medium-
Low risk lightning arresters, and circuit breakers Effective
production and operations temperature return water—generating high-temperature hot water for direct
every three years.
reuse in dyeing and finishing high-temperature processing equipment. Since
Carry out routine temperature monitoring
commissioning in May 2025, the heat exchanger inlet water temperature has
of power cable knife switches to ensure a
been 40 ° C, with an average outlet temperature of 73 ° C and a daily average heat
stable power supply.
exchange water volume of 195 m?. Based on an 80% thermal efficiency conversion
Strengthen patrol inspections of water rate, the recovered heat value represents annual cost savings of approximately
Impact of water supply on pipelines. RMB550,000 — with the capital investment fully recovered within three months of
Effective
Low risk Test water quality daily. operation.
production and operations
Promptly repair pipeline leak points.
Strengthen routine inspections and patrol
Impact of steam supply on checks of steam pipelines.
Effective
Low risk Promptly repair any leaks, seepage,
production and operations
dripping, or spillage identified in the
pipelines.
Energy Conservation and ESG Report 2025
Chairman's Statement About the Company ESG Governance Products and Services Production Operations Employee's Rights and Benefits Community Engagement Key Performance Indicators
Environmental Protection Lu Thai Textile Co., Ltd
Atmospheric pollutant management
Resource management
In 2025, the Company’s water resource management efforts centered on intensive utilization and sustainable development. Through scientific
assessment of production water requirements and optimization of water intake and recirculating water systems, the Company achieved more Risk analysis and response measures
efficient water allocation and improved utilization rates. Internal management systems were strengthened, water conservation compliance
oversight was enhanced, and water-saving processes and equipment upgrades were promoted — yielding meaningful results in water
resource management over the course of the year. These efforts have effectively supported the Company’s green transition and long-term Assessment of Risks
Risk Description Risk Level Responses
competitiveness while ensuring continuity of production operations. and Opportunities
Each year, we engage a qualified third party to monitor
Water conservation and measure exhaust gas emissions at the plant
boundary to ensure compliant discharge of exhaust gas
emissions.
Excessive exhaust gas
Low risk The Energy and Environmental Protection Department
Water conservation is a critical initiative for ecological balance and sustainable development, aimed at reducing water waste and emissions, causing air Effective
coordinates with all emission-generating departments
improving utilization efficiency through sound management, technological innovation, and broad participation. Leveraging the pollution
to establish pollutant discharge quotas and conducts
Group’s proprietary wastewater treatment facilities, the Company has established the capacity to recover and reuse approximately
unannounced monitoring of wastewater, air emissions,
and noise pollution sources. For abnormal emissions, the
effectively alleviating regional water supply pressures, and serving as a clear industry benchmark.
Department supervises the responsible departments and
Water consumption at each operating unit is measured by flow meters, and total water consumption is the sum of municipally facilities to complete corrective actions as promptly as
supplied water and reclaimed water. possible.
Qtotal = ∑ q tap water + q reclaimed water
Current governance status
The Company proactively carried out air pollutant control efforts to minimize the environmental burden caused by our production and
operations to the greatest extent possible. All air emission sources are recorded using measured concentration values. Applicable standards
Sewage treatment include: Emission Standards for Odor Pollutants (GB 14554-1993)—ammonia 1.5 mg/m?, hydrogen sulfide 0.06 mg/m?; Volatile Organic
C o m p o u n d s E m i s s i o n Sta n d a r d s , Pa r t V I I : O t h e r
Industries (DB37/2801.7-2019)—odor concentration 16
(dimensionless), non-methane total hydrocarbons (NMHC)
The Company’s sewage treatment operations are closely aligned with its green development philosophy. By strengthening operational 2.0 mg /m?; and Integrated Emission Standard of Air
controls, optimizing process technologies, and raising employee environmental awareness, the Company ensures that the full Pollutants (GB 16297-1996) — particulate matter 1.0 mg/m?.
wastewater treatment process operates efficiently and stably—achieving compliant discharge, resource recycling, and compliant
During the reporting period, unorganized air emission
hazardous waste disposal to safeguard environmental safety and further advance the Company’s transition toward a low-carbon,
concentrations at the plant boundary were as follows:
sustainable model.
hydrogen sulfide 0.006 mg /m?, ammonia 0.06 mg /m?,
The Company operates an on-site wastewater treatment station particulate matter 0.29 mg/m?, NMHC 1.3 mg/m?, and odor
and a municipal wastewater treatment plant. The on-site station concentration 13 (dimensionless)—all within and below
employs an Anoxic-Oxic (AO) wastewater treatment process, with the applicable emission limit values of hydrogen sulfide
effluent quality meeting the indirect discharge concentration 0.06 mg/m?, ammonia 1.5 mg/m?, particulate matter 1.0
limits set out in the Discharge Standards of Water Pollutants mg /m?, NMHC 2.0 mg /m?, and odor concentration 16
for Dyeing and Finishing of Textile Industry (GB4287-2012). The (dimensionless).
municipal wastewater treatment plant uses a “hydrolysis +
Orbal oxidation ditch” process with a treatment capacity of
approximately 120,000 m?/day, and produces effluent quality
exceeding the discharge limits of the Shandong Provincial
local standard Water Pollutant Discharge Standards for Urban
Wastewater Treatment Plants (DB37 4809-2025).
Energy Conservation and ESG Report 2025
Chairman's Statement About the Company ESG Governance Products and Services Production Operations Employee's Rights and Benefits Community Engagement Key Performance Indicators
Environmental Protection Lu Thai Textile Co., Ltd
Waste management
Management status
Risk analysis and response measures
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. A dedicated hazardous waste storage facility has been established
Assessment of Risks with appropriate infrastructure, and hazardous waste is managed through classification. The transfer of hazardous waste is entrusted exclusively
Risk Description Risk Level Responses
and Opportunities to licensed hazardous waste treatment companies, and unauthorized disposal of hazardous waste is strictly prohibited. The main hazardous
The Environmental Operations Management Regulations waste generated in the production and operation of the Company includes waste oil, waste oil barrels, waste paint buckets, waste detergent
have been established, requiring waste-generating barrels, liners contaminated by chemical dyes, waste lead-acid batteries, laboratory waste liquid, etc.; the main non-hazardous wastes brought
departments to strictly place waste at designated by the production and operation is the sludge. Waste generation volumes are calculated using direct measurement methods.
Improper disposal of
locations in accordance with regulations and prohibiting
hazardous waste through
unauthorized disposal.
non-standard channels Effective
Low risk
causing environmental Through the establishment of the Emergency
pollution Preparedness and Response Management Regulations,
hazardous waste treated totaled
the Company is able to respond to incidents in a timely
and effective manner, controlling their escalation and non-hazardous waste treated totaled 12,115 tons
minimizing harm.
A dedicated hazardous waste storage facility has been
established, with classified collection of hazardous
waste and regular engagement of qualified third-party
Improper stockpiling
organizations for disposal.
and disposal of general
Low risk Effective
solid waste causing Through the establishment of the Emergency
environmental pollution Preparedness and Response Management Regulations,
the Company is able to respond to incidents in a timely
and effective manner, controlling their escalation and
minimizing harm.
Biodiversity protection
Lu Thai Textile is committed to biodiversity conservation and strictly complies with the Forest Law of the People’s Republic of China, the
Regulations on the Implementation of the Forest Law of the People’s Republic of China, the Forest Logging and Regeneration Management
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 of China, as well as the United Nations Convention on Biological Diversity, and other biodiversity-related laws, regulations, and
international conventions.
To protect biodiversity, we assess the dependence and impact of our business operations on natural resources, organize tree-planting activities
for employees, promote paperless offices, and continuously work to reduce the negative impact of our operations on biodiversity. We actively
promote sustainable use of natural resources and contribute to ecological balance maintenance.
Employee’s Rights and Benefits/
Building a Harmonious Workplace
Together
Employees are the backbone and source of innovation for an enterprise. Unlocking employees’
potential and cultivating a sense of ownership are key to an enterprise’s sustainable
development. 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 Goals
Energy Conservation and ESG Report 2025
Chairman's Statement About the Company ESG Governance Products and Services Production Operations Employee's Rights and Benefits Community Engagement Key Performance Indicators
Environmental Protection Lu Thai Textile Co., Ltd
Respect and equality Indicator (Unit) 2023 2024 2025
Lu Thai 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
the International Covenant on Economic, Social and Cultural Rights and the Elimination of Discrimination in respect of Employment and Total number of employees aged under 30 (person) 9,671 9,814 9,363
Occupation, so as to build an equal, friendly occupational platform for employees.
The Company believes that talents are the basis for the operation and sustainable development of companies. As to the recruitment and Proportion of employees aged under 30 (%) 42 41 40
retention of talents, the Company adheres to the “all-inclusive” concept, accepts all talents, and promises not to determine employees’
salary and rank based on their gender, age, nationality, ethnicity, religion, color, language, domicile place and other personal characteristics
Total number of employees aged above 30 (person) 13,179 14,174 14,230
unrelated to work. The Company respects the legitimate rights of every employee, and provides equal and free development space for every
employee.
Proportion of employees aged above 31 (%) 58 59 60
Education background of employees
Bachelor or above (person) 1,319 1,555 1,571
Junior college (person) 3,726 4,517 3,982
High school or below (person) 17,805 17,916 18,040
Nationality
China (%) 51 46 44
Foreign employees (%) 49 54 56
During recruitment, we do not deliberately The Company is committed to ensuring A fair competition mechanism is adopted
Caring for female employees
d i f fe re n t i ate ba s e d o n ge n d e r, ra ce , that gender, beliefs, ethnicity, and other for promotion. The performance, abilities,
nationality, etc., and we adhere to equal non-work-related factors do not influence a n d p ot e n t i a l o f e m p l o y e e s w i l l b e
opportunities. employees’ salaries or promotions. considered to select the best ones.
The Company always pays attention to the rights and development of female employees and always puts special protection
for female 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
Employee diversity
them to maintain a good state in professional competition.
Measures taken:
The Company adhered to gender equality, eliminated gender discrimination, and implemented merit-based hiring
under equal conditions.
Indicator (Unit) 2023 2023 2025 The Company has ensured career development of female employees, and provided broader development space for
female employees.
Employee diversity The Company has established a female employees’ committee to assist female employees in solving their difficulties
of life and work, and safeguarding their legitimate rights and interests.
Total number of incumbent employees (person) 22,850 23,988 23,593 In 2025, the psychological counseling office organized and received 32 sessions of exchanges and symposiums for
women workers.
Total number of male employees (person) 9,317 10,432 9,972
In 2025, 16 training sessions were conducted for female employees, with approximately 1600 participants. The training
mainly combined offline sessions with online courses, focusing on women’s health care and mental health knowledge.
Proportion of male employees (%) 41 43 42
A range of activities were organized—including reading sessions, team-building outings, recreational competitions,
floral arrangement workshops, and pastry-making classes — to promote the overall development of female employees,
Total number of female employees (person) 13,533 13,556 13,621
with prizes awarded to outstanding participants.
Proportion of female Employees (%) 59 57 58 Facilities and the environment of the designated maternity rest rooms have been continuously improved to provide
expectant mothers with a more comfortable and convenient resting environment.
In 2025, a total of 2,677 married female employees underwent health check-ups, with total examination costs exceeding
RMB80,000.
Energy Conservation and ESG Report 2025
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Environmental Protection Lu Thai Textile Co., Ltd
Outreach activities
Female employee symposium
Mom’s cabin
Series of Activities on the International Women’s Day on March 8
Energy Conservation and ESG Report 2025
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Environmental Protection Lu Thai Textile Co., Ltd
Human rights and labor
Compensation and benefits
The Company has established a comprehensive compensation and benefits system for employees. In accordance with the
law, the Company makes contributions for employees to basic pension insurance, medical insurance, work-related injury
insurance, and unemployment insurance. The Company strictly provides employees with paid annual leave, home leave,
marriage leave, maternity leave, work-related injury leave, and other benefits in line with national standards. The Company
actively enhances employee communication channels by establishing and improving mechanisms such as labor unions,
employee representative meetings, and grievance procedures. The Company promptly accepts, handles, and provides
feedback on employees’ comments, suggestions, complaints, and appeals regarding compensation and benefits, effectively
safeguarding employees’ legitimate rights and interests.
Indicator (Unit) 2023 2024 2025
Employment contract signing rate (%) 100 100 100
Social insurance coverage (%) 100 100 100
Signing rate of collective bargaining agreement (%) 100 100 100
Lu Thai 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 optimizes the salary structure and improves performance
Cultural and recreational activities
appraisal standards to maximizes employees’ salary and benefits.
Human rights protection
In interview process, the Company actively examines identity cards, diplomas, etc., to prevent child laborers or underage
workers who have not finished legal compulsory education from being recruited by mistakes.
The Company is committed to putting an end to any form of forced or compulsory labor. Employees are free to leave the
workplace after completing 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.
In the course of production and operation, cooperating with the local government or third-party institutions, the
Company actively carries out due diligence on human rights protection.
To fully incorporate employees’ insights and promote employees’ participation in Company management, our labor
union collected employees’ opinions and suggestions through various channels.
Health check-ups and free medical consultations for female employees
Energy Conservation and ESG Report 2025
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Environmental Protection Lu Thai Textile Co., Ltd
Complaint and Suggestion Channels
The Company posts warning signs and occupational hazard notification cards in prominent positions in the workshop.
The Company regularly maintains and repairs occupational hazard protection facilities to ensure their integrity and effectiveness.
The Company organizes new employee symposiums and establishes an “on-site response + closed-loop
Each year, the Company organizes one to two emergency rescue drills involving relevant departments and workshops to enhance
follow-up” mechanism: employees’ questions are addressed directly and communicated in detail during
employees’ emergency response capabilities for sudden occupational hazard incidents.
the sessions, while all issues are systematically fed back to HR administrators of relevant departments.
Clear requirements are set to formulate rectification plans, advance coordinated resolution, and track the Provide employees exposed to occupational hazards with standardized and effective personal protective equipment (PPE),
implementation progress throughout the process. In 2025, we conducted in-depth engagement with a total ensuring regular procurement, distribution, and supervision of PPE usage to prevent occupational diseases. The Company installs
of 500 new employees and addressed their concerns and needs in line with our actual conditions. rinsing facilities in places with corrosive substances such as acids and alkalis or risks of chemical burns. Besides, the Company
maintains, services, and upgrades occupational disease protection facilities.
Every year, employee representatives are elected through employee elections, and the Labor Union
regularly holds employee representative assemblies to promote activities of the Labor Union and Organize first aid and heatstroke prevention training to enhance employees’ emergency response skills. In 2025, the Company
communicate with employees. conducted 16 first aid training sessions and 22 heatstroke prevention training sessions.
Suggestion boxes are set up in various plants and departments of the Company to collect employees’ The Company popularizes health care knowledge each month, and provides first-aid medical kits for employees, with first-aid
opinions on the Company’s policies, management processes, and salary benefits. The Labor Union medicine supplemented for 271 times on average per month in 2025.
organizes them once a month and provides feedback to the Company’s senior leadership to discuss
improvement plans. The Company distributes heatstroke prevention drugs in summer for convenient use by employees.
Hotlines and email addresses are set up to encourage employees to actively voice their opinions on the In 2025, no any major public health events occurred in the Company.
Company’s development.
Tel.: (86) 533-5261634
SMS: 18560301315
Email: gonghui@lttc.com.cn Employee Physical
Chairman Reception Day on the 25th of each month—direct face-to-face communication with employees. Examinations
Occupational health and safety
First Aid Training
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, effectively safeguarding the occupational health and life safety of every Lu Thaier.
Prioritize safety before production; no
production without safety. Strictly adhere Source management and green
to operating procedures to prevent safety manufacturing. Emphasize
accidents. prevention and a combination of
Lu Thai EHS prevention and control measures.
Comply with environmental laws Philosophy
and standards and fulfill corporate
social responsibility in environmental
protection. Ensure management practices Safety first, prevention-oriented, and
align with compliance requirements for a comprehensive management.
safe working environment.
Measures taken:
Before taking up their posts, all new employees undergo pre-employment physical examinations to prevent personnel with
occupational contraindications from engaging in related positions. During employment, the Company conducts occupational
health examinations in compliance with regulations and reasonably adjusts job assignments based on the examination results.
Upon leaving their posts, employees undergo post-employment occupational health examinations to ensure they leave in good
health.
The Company has conducted regular occupational health education and training for employees, and established occupational
health surveillance archives for employees, realizing the standardized management featuring “one archive for one person”. Personal Protective Equipment Occupational Hazardous Factor Detection
Conduct annual occupational hazard assessments in key areas, with immediate rectification for any testing points that fail to
meet standards.
Energy Conservation and ESG Report 2025
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Environmental Protection Lu Thai Textile Co., Ltd
Occupational
Hazardous Countermeasures
Factors
• Take airtight, ventilating, and dedusting measures for cotton blending
machines and scutchers in pre-spun process
• Adopt the approach of wet sweeping for the workshop to take away the dust
Dust accumulated on the surface as much as possible
• Regularly clean the air duct
• Distribute sufficient dust masks that conform to international standards
• Distribute items for heatstroke prevention for high-temperature posts in
the workshop
High temperature and • Add Auricularia auricula and pig blood curd to workshop meals to
high humidity enhance employees’ ability to defend against occupational diseases
• Adjust the air supply and exhaust volume in the workshop
• Equip employees with disposable noise-reducing earplugs and replace
Noise and vibration them regularly
Summer camp program
Talent management 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 Lu Thai Group for newly recruited key position personnel, and organized various departments
to formulate the Measures for the Management of the Tier-Two Talent Pool, achieving “position-based recruitment and targeted development”
for personnel in key positions. In 2025, totally 86 key post personnel were recruited, and totally 118 second-level talents were reserved for all
departments.
Talent acquisition
Career Planning for Employees
Lu Thai scientifically forecasts talent demand by taking into account 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 Excellence Plan
the same time, the Company steadily advances international talent recruitment in the United States, Italy, Japan, Vietnam,
Cambodia, Myanmar, and other countries to support its overseas business expansion.
Elite Plan Senior managerial
Additionally, to promote internal talent mobility and encourage employees to achieve diversified career development,
personnel
employees can apply for internal job postings. Those who meet job requirements and pass interviews can transfer positions
Flight Plan Research and study
following the Company’s recruitment procedures. Employees and departments can also submit internal transfer applications Middle-level engineering
based on operational needs. managerial personnel
Set-sail Plan Grass-roots
This year, the summer camp program organized by the Human Resources Department brought together outstanding managerial personnel
Re-building System management
students from 14 universities, including Qingdao University, Inner Mongolia University of Technology, Qiqihar University, Incubation
engineering Managing operations
Dalian Polytechnic University, Beijing Institute of Fashion Technology, Tiangong University, Hebei University of Science and Onboarding Performance-oriented
engineering Department manager
Technology, Zhongyuan University of Technology, Xi’an Polytechnic University, Jiangnan University, Soochow University, personnel Cross-department
Managing the department coordination
Donghua University, Wuhan Textile University, and Zhejiang Sci-Tech University. Through a multidimensional experience Cultivation Maximizing the Company’s
Professional backbone
model of “see, listen, do, and feel”, the program enabled students to gain a comprehensive and in-depth understanding of engineering
Managing others
benefits
our business development and culture, while also effectively enhancing our employer brand influence across universities. This year’s new employee Considering both individual
Giving strategic support
Self-management and team
Basic skills training Individual’s success and
team’s success
Zero to one One to two Three to five Over five years
year years years
Energy Conservation and ESG Report 2025
Chairman's Statement About the Company ESG Governance Products and Services Production Operations Employee's Rights and Benefits Community Engagement Key Performance Indicators
Environmental Protection Lu Thai Textile Co., Ltd
Employee training and development External personnel training
To help local unemployed individuals broaden employment channels and enhance their employment competitiveness, Lu
Lu Thai Vocational Training School is dedicated to serving regional economic and social development, aligning with market
Thai Vocational Training School provides specialized vocational skills training and job-specific skills enhancement training.
demand, and focusing on employment promotion and industry development needs. The school is committed to cultivating
After training, participants take certification exams, and those who pass receive relevant certificates. In 2025, a total of 122
skilled professionals and provides training in employment skills, skill enhancement, and competency development for
unemployed individuals received training, among whom 106 obtained Specialized Vocational Ability Certificates and 16 obtained
unemployed individuals, rural migrant workers, and university students.
Skill Level Certificates.
Internal employee training
The Company focuses on establishing and improving a standardized training system for all positions, clearly defining the
development cycle, core training content, and regularization assessment standards for different roles. Through a diversified
training model of “theoretical instruction + hands-on practice + mentor coaching”, the Company helps new employees rapidly
enhance their professional skills and achieve independent job placement as soon as possible.
At the same time, the Company continues to improve our full-cycle vocational training system, covering multiple dimensions Unemployed
such as onboarding training for new employees, on-the-job skills enhancement training, and advanced management capability worker training
training. Based on the development needs of employees in different positions and at different levels, the Company precisely
matches training resources, builds a clear career advancement pathway for employees, and helps employees achieve the shared
enhancement of personal value and corporate value.
A total of 23,593 employees took part in the vocational training in 2025 with a coverage rate of 100%.
Multi-dimensional promotion mechanism
Indicator (Unit) 2023 2023 2025
Training participants (person) 22,850 23,988 23,593 The Company implements horizontal and vertical dual channel development (job promotion and cross-job promotion), with
promotion in the directions of management line and professional lines (the former is achieved through job changes, while the
Average training hour (hour) 56 56 56 latter is achieved through internal professional title appraisal). Targeted training is carried out based on personnel characteristics
and personal preferences, achieving multi-dimensional development space for employees.
Training coverage rate (%) 100 100 100
Production Line Position Functional Department Position
Promotion Planning Chart Promotion Planning Chart
Functional
Factory management department
personnel managemen
personnel
Team Leader
Reserve talents
Reserve talents
Team Leader
Onboarding training Training for frontline managers Excellent employee
Excellent employee
Multi-skilled worker
Regular employee
Skilled worker
Worker at the production line
Promotion and development
Employee skills training
Energy Conservation and ESG Report 2025
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Environmental Protection Lu Thai Textile Co., Ltd
In 2025, the Company appointed two employees as Chief Technicians, 33 employees as Senior Technicians, and 103 employees
as Technicians. A total of 476 employees were Senior Technicians, 505 employees were Intermediate Technicians, 509 employees
were Level 2 Junior Technicians, and 690 employees were Level 1 Junior Technicians. During the term of appointment, they
were provided with monthly skills allowances of RMB2,500, RMB1,500, RMB1,000, RMB500, RMB300, RMB200, and RMB100,
respectively.
We appointed seven employees as Level 1 Engineers, 45 employees as Engineers, 411 employees as Assistant Engineers, and 146
employees as Technicians. During the term of appointment, we provided engineering and technical allowances of RMB1,000,
RMB800, RMB400, and RMB200 per month, respectively.
We appointed one employee as a Level 1 Designer, five employees as Designers, 17 employees as Assistant Designers, and two
employees as Design Technicians. During the term of appointment, we provided professional design allowances of RMB1,000,
RMB800, RMB400, and RMB200 per month, respectively.
Since 2003, the Company has established an internal professional title evaluation, appointment, and allowance system, actively
Technical competition
promoting the values of honoring labor, valuing skills, and fostering creativity. This has created a sound corporate culture
that emphasizes and respects skill development, encouraging employees to learn, practice, and hone professional skills. The
Company has taken a leading position in the industry in cultivating and evaluating skilled talent. The internal professional title
evaluation and appointment system has become a key platform for implementing the Company’s philosophy of “valuing, [Case] The Company’s Activity of Evaluating the Excellent
nurturing, and utilizing talent”. This professional title evaluation and appointment activity, based on summarizing experience
and in light of the new situation and changes we currently face, adhered to the principle of “being grounded in standards,
strengthening guidance, and emphasizing practical effectiveness”, effectively driving the comprehensive improvement of our The Company launched the activity of evaluating the excellent, in order to further promote the excellent corporate culture of
employees’ knowledge and skills as well as their professional competence. the Company, commend outstanding collectives and employees who performed outstandingly in the past year, and motivate
everyone to innovate their performance, achieve new breakthroughs, and make new contributions in the next year. A total
of 10,696 participants took part in the evaluation process. Through a graded assessment, the final selections included 2,631
Qualification support “Advanced Production (Work) Individuals”, 114 “Company Model Employees”, 10 “Labor Models”, and 41 “Advanced
Collectives”. The total bonus awarded amounted to RMB3 million.
Case
This year, nine employees were encouraged to take the Certified Safety Engineer Examination, with one
employee passing and obtaining certification.
Promoting skills development
Lu Thai Textile actively carries out various skill competitions, and encourages its employees to enhance their learning and
capabilities through these events, to refine their professional skills and define their vocational objectives and orientations.
The Company also encourages its employees to take vocational qualification examinations, so as to transfer what they
have learned into practical output. These initiatives continuously promote employees’ development toward high-level
specialization and support the Company’s aspiration to become a world-class enterprise characterized by learning, skills,
and innovation.
[Case] The Company’s Thirty-fifth Session of Technical Demonstration and Competition
From April to July 2025, the Company held the thirty-fifth session of activity of
technical demonstration and competition. A total of 46 companies and 7,810
personnel covering 605 types of work in total took part in the competition.
Through the processes of publicity and mobilization, training and learning, post
drills, and preliminary and final competitions, finally there were 29 champions
of single skills of departments, 3,058 winners of technical demonstrations
and competitions, 659 “excellent versatile workers”, and 93 “excellent
teams”, 10 single-skill champions of the Company, and 125 “technical
model employees”, 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.
Energy Conservation and ESG Report 2025
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Environmental Protection Lu Thai Textile Co., Ltd
Benefits and care Emphasis on employees’ living and dining conditions
Lu Thai currently has more than 20,000 employees. The Company attaches great importance to the quality and services of employees’
We have always upheld the philosophy that “employees are an enterprise’s most valuable resource”, firmly believing that stable board and lodging, and regularly carries out satisfaction surveys of employees’ board and lodging each year, to constantly improve logistics
employment for employees is an important foundation for our high-quality development. Therefore, we continuously enhance employee management and services to strive to provide employees with nutritionally balanced dining conditions and a convenient and comfortable living
satisfaction and sense of belonging, striving to meet various employee needs to the greatest extent possible. environment.
We provide our Group’s employees with a wide range of non-salary benefits, such as occupational health examinations, employee welfare
physical examinations, commuter shuttle buses, travel allowances, and welfare dormitories, etc. At the same time, we establish dedicated
benefits for employees with special needs, such as lactation rooms, dedicated health examinations for female employees, and condolence Continuously enhance employees’ job skills by adhering to the principles of “standardization and
payments for employees in hardship, etc. regulation” in food preparation. Advocate for quality awareness among all employees, starting with basic
dishes, optimizing cooking methods, mastering heat control, ensuring precise seasoning, and maintaining
stable food quality.
Non-statutory benefits available to eligible
Develop on-duty meal menus through a combination of intelligent planning and employee surveys, ensuring
the accumulation of raw data to guarantee menu diversity, balance, and seasonality.
Display QR codes on dining tables for feedback collection, utilizing multiple channels to gather opinions and
Travel allowance Employee health Employee activity suggestions, and continuously improving food quality.
Staff dormitories
Communication check-ups Staff canteen center
Government talent Promote the upgrade of smart dining facilities, enabling diversified intelligent management methods such as
allowance Free heatstroke Free working meals Library
apartments card, QR code, and facial recognition payments, self-service card replenishment, intelligent food sampling,
Shift allowance prevention supplies Convenient pastries Orchestra
Housing purchase morning health checks, and AI monitoring, improving restaurant attendance rates and convenience.
Overseas assignment Cooling fruits and fruits Team-building
subsidy
allowance On-site medical room activities Adjust menus according to seasonal changes, ensuring a cool taste in summer and hot soups and hot dishes in
Shuttle service winter. In summer, meals amid shift are added with seasonal fruits and mung bean soup, to prevent employees
from heatstroke and reduce heat from employees.
Establish a provincial-level healthy enterprise to ensure food safety, create a healthy dining environment, and
continuously promote health awareness by advocating “low salt, low sugar, and low fat”, prioritizing health.
Work support Health Living Catering Leisure activities
To reflect the Company’s humanistic care, make birthday cakes for employees free of charge. Meanwhile,
launch a cake ordering service and undertake the production of large and specialty cakes to better serve
employees.
Financial assistance In 2025, employee dining satisfaction reached 83.95%.
Mother and baby room Academic
Traditional festival for employees’
Women-specific health qualification subsidies
gifts for talent recruitment children attending
check-ups
Annual meeting raffle Talent skills university
Specialized training for
Anniversary
enhancement award Consolation
female employees Postdoctoral research
celebration prize payments for
Psychological workstation
activities employees in need
counseling room for Equity incentive for
key employees Major illness
female employees
assistance fund
Holidays Protection for female Talent support Assistance
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, and work injury
insurance) and housing provident fund.
Holiday Gift Distribution Bonus and Benefits Distribution Diverse Dishes Pastry Category
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Environmental Protection Lu Thai Textile Co., Ltd
Air conditioners and free Wi-Fi are uniformly equipped in all dormitories in the Company.
Relief of Employees in Difficulties
Each floor in the apartment is equipped with chess and card room, television hall and smoking room.
Each building in the apartment areas is equipped with a fully automatic coin-operated washing machine.
Implementing the people-foremost policy and caring for employees have always been an important part of the Company’s corporate
convenient and fast shopping. and understand the 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
The apartments provide the services of cleaning working clothes and articles of bedding free of charge, and set foundation, and distributes assistance funds to employees with family difficulties every year, hence helping employees to go through
up locations for replacing articles of bedding to achieve that such articles can be replaced whenever they are their difficult pass. In 2025, a total of 88 employees received assistance, with relief grants totaling RMB194,000.
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.
Independent shower rooms in university student apartments.
Distribution of Relief Funds
Summer-vacation daycare program
In the scorching summer, care fills Lu Thai. To effectively
a d d re s s e m p l oye e s ’ “ d i f f i c u l t i e s i n a r ra n g i n g
summer childcare for their children” and to enhance
employees’ sense of belonging and well-being, Lu Thai
Group carefully organized the “Employees’ Aid for the
Employee Apartments Supermarket
Future” summer vacation care class for employees’
children, which officially opened on July 10. Liu Zibin, the
Company’s Chairman, and President, made a special
Employee care and support visit to the care class site to warmly visit and express
his regards to the children in care and the hardworking
teaching and administrative staff, and to learn first-hand
about the operation of the program.
Golden Autumn Scholarship This summer care class ran from July 10 to August 26,
lasting 40 days. It was held in two sessions, with five
classes in each session, accommodating a total of 300
In the crisp air of golden autumn, fruits hang heavy on the branches. With our
employees’ children. Centered on four key themes
original aspiration, we build dreams, and the future is promising. This year, Lu
of “ingenuity, traditional Chinese culture, the spirit of
Thai Group again ushered in a bumper season for the National College Entrance
labor, and safety protection”, the care class offered
Examination. More than 330 employees’ children achieved outstanding results
a wide range of activities such as recitation, writing,
and were admitted to universities, setting a record high for admissions across all
drawing, handicrafts, singing, and gesture dance, creating
years. This is both a glory for families and a source of pride for Lu Thai, reflecting
a safe, beneficial, and joyful summer environment
the fine family tradition among our employees of respecting culture and valuing
for employees’ children. It enabled children to grow
education, and further demonstrating the deep commitment of the enterprise to
through learning and gain through interaction, spending
grow together with employees.
a fulfilling and unforgettable summer vacation.
On August 18, Lu Thai Group held the 2025 “Golden Autumn Scholarship”
award ceremony. Leaders including a member of the Party Leadership Group Daily Activities and Performance of the Summer
and Deputy Director of the Zichuan District Bureau of Education and Sports, and Daycare Program
Liu Zibin, the Company’s Chairman, and President, attended the ceremony
and presented scholarships to employees’ children who were admitted to
universities for further study this year. Students admitted to undergraduate
Scholarship Awarding Ceremony of the
programs received RMB5,000 each, and students admitted to junior college
Golden Autumn Scholarship Program
programs received RMB3,000 each.
Energy Conservation and ESG Report 2025
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Environmental Protection Lu Thai Textile Co., Ltd
[Case] The 11th Employee
Sports Meeting
Mid-autumn family banquet
Colorful flags flutter against the clear sky, and waves of cheers shake the
green field.
On October 6, Lu Thai Group’s 2025 mid-autumn family banquet themed
On May 24, Lu Thai Stadium was filled with blooming flowers, fluttering
“Full Moon at Mid-autumn, Love Fills Lu Thai” was held. Company
flags, and a roaring crowd as the Lu Thai Group 11th Employee Sports
leaders including Liu Zibin, Chairman, and President, gathered with
Meeting kicked off in a vibrant, youthful atmosphere.
representatives of young employees, while employee representatives
from overseas production bases joined via video connection to celebrate The opening ceremony of this Employee Sports Meeting featured 14
the Mid-Autumn Festival together. representative team formations, with nearly 3,000 participants taking
part in the formation display. A newly added performance formation
Chairman Liu Zibin stated that the Group will not forget every member
strengthened the promotion of corporate culture, highlighting our
of the Lu Thai family striving away from home. With the commitment of
cohesion and centripetal force. This Sports Meeting included a total of
sacrificing the small family for the greater good, everyone has enabled
the Lu Thai spirit to be carried forward overseas, making our corporate
track and field and fun events. On the field, speed and strength collided,
culture more open and inclusive. Through professionalism and hard
unity and perseverance intertwined. With high spirits, Lu Thaiers
work, everyone has built a bridge for our global development. Every
interpreted the sportsmanship of “Faster, Higher, Stronger, Together”,
moment of perseverance in a foreign land has made our globalization
and further demonstrated Lu Thai’s never-stopping spirit of striving.
blueprint clearer. The Company and our families will always be the
warmest harbor and strongest support. At the same time, the Chairman In the end, the Representative Team of LuFeng Dyeing and Finishing
encouraged young employees to have ideals, take responsibility, endure Plant II, the Representative Team of LuFeng Weaving Plant, and the
hardship, and work hard, demonstrating the vigor and sharpness of Representative Team of the Sample Plant won first, second, and third
youth, earning a broader stage for career development, and becoming a place, respectively, in the overall team score. Lu Thai Vocational School
vibrant force supporting the Company’s growth. won the Spiritual Civilization Award, and the Yarn Product Line, Knitted Sports Meeting Competition Scene
Fabric Product Line, LuQun Textile, and LuRui Unikorn won the Excellent
Organization Award.
Enriching employees’ cultural and recreational life
[Case] The 38th Anniversary Celebration–
Gala Performance
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. On June 6, 2025, United in Purpose to Embark on a New Journey, Striving
to Compose a Glorious Chapter: A series of activities celebrating the 38th
anniversary of the establishment of Lu Thai Group were held.
[Case] “Tribute to Strivers, A Song of Striving” – 2025 New At 17:00 on June 6, a reception celebrating the 38th anniversary of the
Year Concert establishment of Lu Thai Group was held. Liu Zibin, the Company’s
C h a i r m a n , a n d P re s i d e n t a n d ot h e r C o m pa n y l ea d e r s , a s w e l l
as representatives of model workers and exemplar y individuals,
On February 7, 2025, the “Tribute to Strivers, A Song of Striving” Lu Thai Group 2025 New Year Concert was grandly held at Lu Thai Academy.
representatives of employees assigned to overseas production
The concert featured a full performance and accompaniment by the Lu Thai Textile Orchestra. bases, representatives of both new and long-serving employees, and
representatives from the Party, Labor Union, and Youth League, totaling
The concert was divided into three chapters. In the first chapter—”Hard Work and Striving Create Great Achievements”, the songs The Story of
more than one hundred people, attended. Reception Scene
Spring, Labor Lifts the Chinese Dream, Crossing Love, and the orchestral ensemble Dance of the Golden Snake showcased that, over the thirty-
eight-year journey of struggle, Lu Thaiers weathered storms together and stood together through thick and thin, advancing hand in hand toward Subsequently, the gala performance was grandly held at Lu Thai
a common goal. Academy. The Dean of the Lu Thai Textile and Apparel College of
Shandong University of Technology, the Principal of Zibo Polytechnic
School, and Liu Zibin, the Company’s Chairman, and President, and
heads of various departments and more than one thousand employee
representatives, watched the performance. The gala opened with the
dance A Riot of Color, conveying the best wishes of all employees for
the 38th anniversary of the Company’s establishment. The program
was performed and expressed in three chapters: Achieving Great
Undertakings Through Hard Work, Creating First-class Excellence
Through Unity and Hard Work, and Continuing the Struggle Toward
the Future, showcasing in a focused manner the positive and uplifting
spirit of textile workers and the aspirations of Lu Thaiers for a better
life.
Gala Scene
During the gala, Chairman Liu Zibin solemnly presented awards to
employees who had completed 10 years of overseas service, conferred
honorary medals, and paid high tribute to the strivers who are embarking
on the Company’s overall internationalization journey.
Concert Performance Scene
Award Presentation Ceremony
Energy Conservation and ESG Report 2025
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Environmental Protection Lu Thai Textile Co., Ltd
[Case] The 27th Session of
[Case] Swimming Competition
Employee Basketball League
[Case] Swimming Competition
In October 2025, Lu Thai Group held the 27th Employee Basketball League. A total of 12 teams participated in this league, which lasted three
On August 16, 2025, Lu Thai Group’s “Swim” Beyond, Strive to Lead: 2025 days and featured 38 fiercely contested games. The teams worked together in unity and fought tenaciously, delivering one thrilling and
Swimming Competition kicked off with great enthusiasm. This event featured gripping game after another for the audience. On the court, there were not only smooth, flowing teamwork and coordination, but also long-
a wide range of programs, including competitive events such as the men’s range three-point shots with pinpoint accuracy. We also saw “striving” in the midst of hard-fought competition, “collaboration” through
and women’s 50-meter races, the men’s 100-meter race, and the men’s unity and teamwork, and “innovation” in the pursuit of excellence.
In the end, the LuFeng Company team, relying on seamless coordination, precise passing, and solid offense and defense, claimed the
child 50-meter race, “landlubber” swimming, and parent-child interactive
championship trophy. Team 1 of the yarn-dyed fabric product line won the runner-up, while Office Team 2 and Office Team 1 placed third and
games. It balanced competitiveness with participation and provided employees
fourth, respectively.
of different age groups and varying swimming abilities with a platform for
showcasing their skills and engaging with one another.
The venue was filled with excitement, with cheers and splashes blending into
an energetic symphony. At the referee’s crisp whistle, competitors in each
event leapt into the pool in succession. Everyone focused intently and paddled
with all their strength, engaging in fierce competition in the pool. Every sprint
demonstrated the resilience and refusal to give in that define Lu Thaiers, and every Swimming Competition Venue
pursuit embodied the fighting spirit of “Faster, Stronger”.
[Case] Lu Thai
Electroacoustic Band Tour
From August 18 to 21, the Lu Thai electroacoustic band toured various Company’s campuses under the theme “Hand in Hand, Strive for the
Future”.
Basketball Match Scene
The stage was brilliantly lit, and the band showcased a versatile musical style. The lively melody of Our Times kicked off the event. When Blue
Lotus began, employees in the audience spontaneously sang along, creating a lively atmosphere. The impassioned rendition of Serve the [Case] The 25th Session of
Country with Utmost Loyalty resonated with the entire audience, drawing thunderous applause. The cast and crew also performed Truly Love Employee Soccer League
You, Legend, The Moon Represents My Heart, Love Song of the Western Sea, Gallop Forward, Your Answer, and other songs. Classics and pop
selections intertwined to create a rich audio-visual experience.
In September 2025, the Company organized the 25th Employee
Football League. A total of 11 teams participated in seven days and 29
matches of intense competition.
The atmosphere at the venue was vibrant, and players from both
sides were full of energy and high morale. Under tight marking and
pressure from opponents, they changed direction nimbly to break
through the defense. In aerial challenges, they leapt into the air,
showcasing strength and athletic beauty. Every attack and defense
embodied the team’s tacit understanding and passion. In the end,
Team 1 of the yarn-dyed fabric product line won the championship of
Tour Performance Scene this league with steady tactical execution and teamwork. The Security
Department representative team fought tenaciously to win the
[Case] “Autumn Rhythm” Lawn Concert and Lu Thai runner-up and the LuFeng Company representative team defeated
Group College Student Networking Event Team 2 of the yarn-dyed fabric product line in a penalty shootout to
take third place.
On August 26, the “Autumn Rhythm” lawn concert and Lu Thai Group college student networking event was held at Panyang Villa Hotel.
Along with the upbeat melody of Our Time, this youth music feast kicked off.
Under dazzling lights, multiple performers took turns on stage, presenting
songs in a variety of styles. The melodious tunes lingered over the lawn, and
the atmosphere on site continued to heat up. Young employees could not
help swaying to the music, and the glow sticks in their hands converged into a
twinkling “galaxy”, with youthful energy and passion everywhere. During the Football Match Scene
interactive segment, “listening and guessing the song” tested musical sense and
memory, while “answering the wrong question” was full of fun and surprises.
The two games drew continuous laughter and further brought young employees [Case] Welcoming 2026: Corporate
closer together. Culture Theme Gala Evening
This “Autumn Rhythm” lawn concert and college student networking event
innovatively adopted an “outdoor music + fun interaction” format. It not only On December 30, 2025, the Lu Thai Group Corporate Culture Theme Gala Evening, themed “Culture Leads the Way to a New Journey, Uniting
allowed young employees to relax in pure and beautiful melodies, but also built a Hearts and Strength to Compose a Glorious Chapter”, was held at the Lu Thai Academy. The gala featured a total of 13 programs presented in
platform for communication and interaction. four chapters. The performers were radiant and high-spirited, fully reflecting the significance and spirit of our corporate culture philosophy.
Event Scene
Energy Conservation and ESG Report 2025
Chairman's Statement About the Company ESG Governance Products and Services Production Operations Employee's Rights and Benefits Community Engagement Key Performance Indicators
Environmental Protection Lu Thai Textile Co., Ltd
Comparison of overall satisfaction from 2012 to 2024
The overall satisfaction rate in the 2024 employee satisfaction survey was 88.4, with a year-on-year growth rate of 0.23%. The
specific analysis is as follows:
Year 2012 2013 2014 2015 2016 2017 2018 2019 2022 2024
Satisfaction 82.1 83.2 83.4 84.2 86.2 87.3 87.8 87.9 88.2 88.4
Year-on-
year
/ 1.30% 0.20% 1.00% 2.40% 1.30% 0.60% 0.10% 0.30% 0.23%
Gala Scene
Employee satisfaction survey
Satisfaction Linear (overall satisfaction)
To scientifically assess employees’ satisfaction with corporate management, working environment, compensation and benefits,
and other aspects, and to accurately identify management shortcomings, the Company conducted employee satisfaction surveys
and implemented issue rectification across the Group. This survey focused on the core objectives of “analyzing the reasons for low
satisfaction, assessing the impact of policy changes, improving shortcomings in a targeted manner, and enhancing team cohesion”.
It covered six core dimensions: overall identification, working environment, direct supervisor, teamwork, learning and development,
and compensation and benefits. The survey respondents covered all Company’s employees (excluding management personnel). It
was conducted in the form of an online questionnaire via the Lu Thai OA system, and standardized analysis was performed using the
Likert Five-Point Scale method to ensure the objectivity and scientific rigor of the survey results.
This survey received extensive employee participation. A total of 9,255
questionnaires were collected, accounting for 89% of the total number of
employees surveyed. After screening, 8,900 valid questionnaires were obtained,
attention to corporate management and their enthusiasm for participation. The
valid questionnaire survey results showed that the average overall employee satisfaction score was
rate 88.4 points (out of 100), an increase of 0.2 points from 88.2 points over the same
period last year.
Community 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 Goals
Energy Conservation and ESG Report 2025
Chairman's Statement About the Company ESG Governance Products and Services Production Operations Employee's Rights and Benefits Community Engagement Key Performance Indicators
Environmental Protection Lu Thai Textile Co., Ltd
[Case] Beijing Institute of Fashion Technology Visited the Company to
Supporting education initiatives Conduct a University-enterprise Cooperation Exchange Event
On January 16, 2025, a delegation led by the Beijing Institute of Fashion Technology visited the Company to conduct an enterprise
visit and research survey, and to carry out exchanges on school-enterprise cooperation. At the symposium, attendees conducted in-
Education is a long-term endeavor that benefits future generations. Over the years, Lu Thai has actively contributed to education support depth exchanges and discussions on school-enterprise cooperation, talent development mechanisms, textile technology, industry
programs, investing a total of over RMB45 million in educational assistance. The Company has established cooperative education programs development trends, and other topics.
with more than 20 vocational and higher education institutions, demonstrating its strong commitment to social responsibility through concrete
actions. Looking ahead, Lu Thai will continue to stay connected to its hometown, support the development of education, strengthen school-
enterprise cooperation, and drive new achievements in educational collaboration.
[Case] A Delegation Led by Zhu Yongmin, Vice President of Xi’an Polytechnic
University, Visited the Company for Research Tour
On July 26, 2025, a delegation led by the Vice President of Xi’an Polytechnic University visited the company for enterprise research
and career opportunity exploration.
At the exchange meeting, Zhang Shougang introduced our production and operations, strategic planning, and school-enterprise
cooperation. He stated that he hoped both parties would build on the existing cooperation outcomes to further deepen synergy,
integrate their strengths in areas such as scientific research innovation and talent development, and jointly explore diversified
innovative talent development models. Welfare and charity actions
The Vice President of Xi’an Polytechnic University provided a detailed introduction to the School’s achievements in running the
institution, talent cultivation, and employment-related work. He expressed the hope that the two parties could establish a regular The Company has always adhered to its original mission, actively participated in public welfare and charity activities, and continuously
communication mechanism to promote precise alignment between talent cultivation and industry needs, achieve resource sharing donated to public welfare and charity projects, to share the achievements of enterprise development with society through practical
and complementary advantages, and support the enterprise’s high-quality development. actions.
[Case] Chairman Liu Zibin’s Visit to Centenarians
On October 28, on the eve of the Double Ninth Festival, Chairman Liu Zibin,
also President of the Company, visited centenarians across the district,
extending his holiday greetings and best wishes.
At each stop, the Chairman had a cordial conversation with their family
members, learned in detail about their health conditions, and presented
condolence payments. He also urged the elderly’s children and relatives
to take good care of the elderly’s daily living and personal needs. Seeing
that the elderly were in good health and their families were harmonious,
the Chairman was genuinely pleased for them. The elderly and their family
[Case] Fan Guijun From Shandong Vocational College for Light Industry Visited the Company for Research Tour members also expressed their heartfelt gratitude for this weighty care and
concern.
Previously, a ceremony was held in which Chairman Liu Zibin donated
On April 2, 2025, a delegation led by Shandong Vocational College for Light Industry visited our Company for a research tour. RMB2 million to centenarians across the entire district, and district leaders
Chairman Liu Zibin hoped that, on the basis of research and exploration, both the school and the enterprise would promptly attended the donation ceremony.
summarize their experience and develop their cooperation into a replicable and scalable branded model for running schools. The
Chairman stated that Lu Thai will continue to support the development of education as always, and are willing to work hand in hand
with the College to deepen cooperation, continuously explore new models of school-enterprise collaboration, take talent-related
work as an important pillar, and achieve a win-win-win outcome for the school, the enterprise, and the students.
On-site Visit Scene
The College leadership stated that the College will focus on corporate needs, promote small-class, high-quality, and precision
education, take root in the regional economy, and better serve corporate development. The College will actively explore areas
including the curriculum system, talent development, and school-enterprise cooperation, and look forward to working with Lu Thai [Case] Donation of Shirts to the Textile Vision
to develop more areas of cooperation. Science & Education Foundation
To build a socialist harmonious society, carry forward the spirit
of humanitarianism, and promote the development of public
welfare undertakings, Lu Thai donated 10,000 shirts to the
Textile Vision Science & Education Foundation.
[Case] Poverty Alleviation and Assistance for Those in Need
Luthai Group supported the national rural revitalization strategy by assisting people living in poverty and donating to
rural development projects. In 2025, the Company distributed Spring Festival gifts—over 7,000 buckets of cooking oil—to
residents in 16 surrounding villages and communities.
Energy Conservation and ESG Report 2025
Chairman's Statement About the Company ESG Governance Products and Services Production Operations Employee's Rights and Benefits Community Engagement Key Performance Indicators
Environmental Protection Lu Thai Textile Co., Ltd
Key Performance Indicators
Economic performance
Waste discharge
Indicator (Unit) 2023 2024 2025
Indicator (Unit) 2023 2024 2025
Operating revenue (RMB’00,000,000) 51.96 60.91 59.04
Hazardous waste generation (ton) 41 36 41
Payments to contractors and service providers
(RMB’00,000,000) Non-hazardous waste generation (sludge) (ton) 12,462 11,420 12,115
Total employee remuneration (including compensation and
benefits) (RMB’00,000,000)
Payments to capital providers (RMB’00,000,000) 1.85 3.32 2.6 Greenhouse gas emissions
Payments to the government (RMB’00,000,000) 3.72 3.55 4.5 Indicator (Unit) 2023 2024 2025
Mobile sources emissions (tons of carbon dioxide
Retained economic value (RMB’00,000,000) 3.10 1.97 4.41 2116 1922 1871
equivalent)
Stationary source emissions (tons of carbon dioxide
equivalent)
Category 1 emissions (tons of carbon dioxide equivalent) 12,636 12,781 14,201
Environmental performance
Consumption of purchased power (tons of carbon dioxide
equivalent)
Data related to wastewater and sewage
Indicator (Unit) 2023 2024 2025 Consumption of purchased heat (tons of carbon dioxide
equivalent)
COD (Chemical Oxygen Demand) in discharged wastewater
(ton)
Ammonia nitrogen content in discharged wastewater (ton) 3 3 2 Total (tons of carbon dioxide equivalent) 304,592 303,725 290,494
Industrial wastewater discharge (10,000 cubic meters) 311 291 261
*D=ρ*Q*10-6 (D—the emissions of a certain pollutant during the accounting period, t; ρ—the mass concentration of a certain pollutant Energy consumption density
in wastewater, mg/L; Q—the wastewater discharge volume during the accounting period, m )
Indicator (Unit) 2023 2024 2025
Greenhouse gas emission intensity (tCO2e per million
Air pollutant emissions revenue) 51.1 49.9 49.2
Total energy emission density (tons of standard coal per
Indicator (Unit) 2023 2024 2025 13.1 12.9 12.84
million revenue)
Sulfur dioxide in emitted exhaust gas (ton) 1 0.2 0
Nitrogen oxides in emitted exhaust gas (ton) 3 1.03 1.65
*D=ρ*M10-9 (D—the emissions of a certain pollutant during the accounting period, t; ρ—the mass concentration of a certain pollutant
in exhaust gas, mg/m3; M—the exhaust gas flow rate during the accounting period, m3)
ESG Report 2025
Products and Services Production Operations Employee's Rights and Benefits Key Performance Indicators Lu Thai Textile Co., Ltd
Human resources Junior college (person) 3,726 4,517 3,982
Protection of employee rights and interests High school or below (person) 17,805 17,916 18,040
Indicator (Unit) 2023 2024 2025 Nationality
China (%) 51 46 44
Employment contract signing rate (%) 100 100 100
Social insurance coverage (%) Foreign employees (%) 49 54 56
Signing rate of collective bargaining agreement (%) 100 100 100
Number of female employees with parental leave during the
Employee turnover
year (person)
Number of male employees with parental leave during the Indicator (Unit) 2023 2024 2025
year (person)
Total number of new employees (person) 3,338 6,648 7,017
Employee diversity
Employee turnover rate(%) 13 20 20
Indicator (Unit) 2023 2024 2025
Employee diversity
Employee training
Total number of incumbent employees (person) 22,850 23,988 23,593
Indicator (Unit) 2023 2024 2025
Total number of male employees (person) 9,317 10,432 9,972
Training participants (person) 22,850 23,988 23,593
Proportion of male employees (%) 41 43 42
Average training hour (hour) 56 56 56
Total number of female employees (person) 13,533 13,556 13,621
Training coverage rate (%) 100% 100% 100%
Proportion of female Employees (%) 59 57 58
Employee age
Total number of employees aged under 30 (person) 9,671 9,814 9,363
Proportion of employees aged under 30 (%) 42 41 40
Total number of employees aged above 30 (person) 13,179 14,174 14,230
Proportion of employees aged above 31 (%) 58 59 60
Education background of employees
Bachelor or above (person) 1,319 1,555 1,571
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