About This ReportReporting EntityThe Reporting Entity is "Luthai Textile Co., Ltd.", which can be referred to as "We", "the Company", "Luthai", "LuthaiCompany" and "Luthai Textile", unless otherwise speci?ed in the main text.
Scope of the ReportThe time span of this Report is mainly from 1 January to 31 December 2023. In order to maintain the continuityand comparability of information, some content is beyond the aforesaid time span. The information involved is fromthe internal data of the Company, information submitted by subsidiaries, and public information. Unless otherwisespeci?ed, all amounts in this Report are expressed in RMB.ReferencesThis Report is formulated in line with the China Social Compliance 9000 for Textile & Apparel Industry (CSC9000T),the Social Responsibility Management System (SA8000), and the core solution of the Standards for SustainabilityReporting of Global Reporting Initiative (GRI). Also, the 2030 Agenda for Sustainable Development (A/RES/70/1) of theUnited Nations is referred to.DisclaimerThis Report is released in both Chinese and English. If there is any discrepancy, the Chinese version shall prevail.Forward-looking statements included in this Report refer to the statements of the business activities, events, ordevelopment 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 fromthese forward-looking statements, due to variable factors. The Company is not obliged to update or responsible forupdating its forward-looking statements made in this Report before 12/04/2024, unless otherwise required by regulatoryauthorities.
Contents
Chairman's Statement
Key Performance IndicatorsGRI Indicator Disclosure IndexReader Feadback
About UsBusiness OperationsDevelopment History
Sustainable Development Strategies and ManagementStrategies and ImplementationSystem Certi?cations and Joining Industry OrganisationsStakeholder Engagement
Corporate Governance/Building Excellent Corporate Governance
Employee's Rights and Bene?ts/Building a Harmonious Workplace Together
Environmental Protection/Deepen Green and Low-carbon Development
Production and Operations/Responsible Production and Operations
Product Services/Providing Ace Services
Community Participation/Striving to Be an Excellent Corporate Citizen
Business visionGovernance structureCompliance managementBusiness ethicsInnovative development
Health and safetyRespect and equalityTraining and developmentBene?ts and care
Addressing climate changeEnergy managementWater resources managementAtmospheric pollutant managementWaste management
Product innovationQuality controlCustomer services and satisfaction
Support to educationWelfare and charity actions
Production safety managementFire safety managementChemical managementSupply chain management
Sustainability Report 2023
Corporate GovernanceAbout UsChairman's StatementProduction and OperationsStrategies and Management
Employee's Rights and Bene?tsProduct ServicesEnvironmental ProtectionCommunity ParticipationLu Thai Textile Co., Ltd
Chairman's Statement
Dear friends, thank you for your interest in this Report. On behalf of the Board of Directors of Luthai Textile,I would like to express my heartfelt gratitude for your long-term support for the Company!Luthai Group embarked on the second five-year phase of its 30-year journey in 2023. It was a yearmarked by remarkable challenges. Confronted with a more complex and severe external environment,all members of Luthai rallied together with enterprise, fortitude, courage, and persistence. We weatheredexternal pressures, surmounted internal obstacles, and pushed forward in the face of adversity. Despitesigni?cant tests, we maintained stable employee teams and achieved smooth progress across all facetsof our work. The second phase of our journey got o? to a promising start. Despite the overall challengingexternal environment, the Company's development remained robust, underscoring our resilience andcommitment to sustainable growth. This demonstrates our strong foundation in business managementand the dedication of our united and hardworking employee team, positioning the Company for promisingfuture development.In 2023, with a focus on customer-centricity, we enhanced our integrated fabric and clothing servicecapabilities to deliver greater value to our customers and society at large. Emphasising production lines,we advanced two key strategies: Improving delivery capabilities and operational efficiency. Placingbusiness operations at the forefront, we bolstered support services to enhance management andassurance levels.Throughout 2023, we fostered a spirit of resilience, cultivated our corporate culture, and continuouslyhoned our capabilities. We launched a project to enrich our corporate culture, systematically re?ning andupgrading it to gather strength. We accelerated automation and intelligent building, enhancing labourproductivity, reducing intensity, and improving workplace conditions. Additionally, we strengthenedhuman resource management, fostering an international talent pool, invigorating organisationaldynamics, and stabilising our employee teams.Recognising the Company's unique position in stabilising the economy, promoting growth, andsafeguarding employment and livelihoods, we prioritised providing stable work and welfare bene?ts toour employees in 2023. We also shared the Company's achievements in enterprise development withour workforce, leveraging our excellent corporate culture. Actively ful?lling our social responsibilities, weimproved our environmental governance capabilities, driving sustainable development.As we enter 2024, a pivotal year in Luthai Group's second five-year phase of the new 30-year voyage,faith becomes our strongest driving force, struggle our most passionate melody, and hard work our mostbeautiful backdrop. We will set sail once again toward new goals.
2024.4.12
Liu ZibinLuthai Textile Co.,LtdChairman President
Sustainability Report 2023Corporate GovernanceAbout UsChairman's StatementProduction and OperationsStrategies and Management
Employee's Rights and Bene?tsProduct ServicesEnvironmental ProtectionCommunity ParticipationLu Thai Textile Co., Ltd
Employee's Rights and Bene?tsProduct ServicesEnvironmental ProtectionCommunity ParticipationLu Thai Textile Co., Ltd
About Us
Business Operations
As at the end of 2023
Luthai Textile Co., Ltd. is an A-share and B-share listed company. It is a comprehensive and innovative international textile and apparel groupwith an industrial chain that integrates R&D, manufacturing, and marketing services. The Company's products are exported to more than 60countries and regions, including the United States, the European Union, and Japan. It has established strategic partnerships with well-knowndomestic and foreign brands, and the export market share of medium- and high-end yarn-dyed fabric accounts for more than 18% of the globalmarket.
The Company's production and operating results have always been among the top in the national textile industry, and it has won honours suchas the "National May First Labor Medal", "National Quality Award", the Third "China Industry Award", and the "Single Champion DemonstrationEnterprise in the Manufacturing Industry". Besides, in 2023, the Company was also awarded these honours: The "Chinese Textile and ApparelBrand of 2023 with Competitive Edge" by the China National Textile and Apparel Council, the "Enterprise with Outstanding Contribution inTechnological Progress" by the China Cotton Textile Association, the "Brand Unit with Outstanding Contribution" by the China Council for BrandDevelopment, the "2022 Golden Trust and Disclosure Award" by the China Securities Journal, and the "Top 100 ESG Golden Bull Awards in theFirst National New Cup". In addition, the Company was also listed in Yicai the Corporate Social Responsibility Ranking in China, and won the"ESG Innovation Practice Award".
Enterprise Credit EvaluationAAA credit Enterprise
National May First Labor
Medal
the ThirdChina Industry Award
National Quality Award
Single ChampionDemonstration Enterprise inthe Manufacturing Industry
Top 100 ESG Golden BullAwards in the First National
New Cup
2022 Golden Trust andDisclosure Award
ESG Innovation Practice
Award
| RMB | RMB | meters |
pieces
| pieces | RMB |
RMB
Total assetsNet assetsTextile fabric that the Company produced in the year
Shirts that the Company produced in the yearOperating revenue recorded in the year
Net pro?t attributable to our shareholders
Sustainability Report 2023Corporate GovernanceAbout UsChairman's StatementProduction and OperationsStrategies and Management
Employee's Rights and Bene?tsProduct ServicesEnvironmental ProtectionCommunity ParticipationLu Thai Textile Co., Ltd
13.43 Billion
5.961 Billion
0.403 Billion
9.617 Billion202 million
20 million
Employee's Rights and Bene?tsProduct ServicesEnvironmental ProtectionCommunity ParticipationLu Thai Textile Co., Ltd
Development History
19872009
2013
2015
2017
2023
2019
2021
1990
1995
1998
2000
2004
2006
2008
1988
2012
2010
2014
2016
2018
2020
2022
1993
1997
1999
2003
2005
2007
Zibo No. 7 Cotton Mill, Luthai's predecessor, wasestablished.
The Luthai Textile and Apparel Engineering Research Institute wasfounded.The Company was granted the Second Prize of the State Scienti?c andTechnological Progress Award for its key processing technology ofultra-high count pure cotton fabrics and its industrialisation, high-?ux?lms for printing and dyeing wastewater and recycling technology.Luthai Milan O?ce was opened.The Company was granted the "National Quality Award".The Company was recognised as a "Five-starred Chinese IndustrialEnterprise in the Performance of Corporate Social Responsibilities".The "set of technologies and equipment for automatic digital cheesedyeing", jointly developed based on the "industry-university-research-application" cooperation, was granted the First Prize of the StateScienti?c and Technological Progress Award.The Company started its new 30-year voyage. A high-level forum on thetheme "Gather the Top Wisdom of the Industry, Plan Luthai's FutureDevelopment" was held to plan the development vision for the nextthree decades.The Company was recognised as a "National Industrial Design Center",making it the ?rst enterprise to win this honour in Zibo City.The water reuse project was completed.
The Company's patent Preparation Device and Method for CelluloseFilbe Cheese Online Dyeing Colour Point Yarn won the China PatentSilver AwardLTTC won the 25th Golden Trust and Disclosure Award for ListedCompanies, and the Secretary of the Board of Directors was awardedthe Golden Bull Secretary Award. The Company won the "Top 100 ESGGolden Bull Awards" in the ?rst National New CupLuthai was listed on the 2023 Yicai the Corporate Social ResponsibilityRanking in China and won the "ESG Innovation Practice Award"
The Luthai Textile Fabric Museum and the Luthai DevelopmentMuseum were opened. The Luthai Industrial Design Summit was held.The construction of the Functional Fabric Intelligent Ecological ParkProject began.The construction of the Luthai knitting project began and Phase I wasput into production.The strategic cooperation project of Luthai Textile and Xiniu IntelligentManufacturing was initiated.
Luthai Textile Company was opened formally.
It passed the ISO9001 Quality Management SystemCerti?cation.
The Company passed the ISO14001 EnvironmentalManagement System Certi?cation.Ranguang Textile Co., Ltd. was acquired.Luthai became A-share listed.Beijing Sichuang Apparels Co., Ltd. was opened.
The Zichuan Urban Sewage Treatment Plant invested by theCompany was put into operation.The Luthai Sports Square was put into use.Luthai Group was incorporated.The Company passed the SA8000 Social ResponsibilityManagement System Certi?cation.
The Company was recognised as a National Yarn-dyedFabric Product R&D Base.
Luthai Textile Company, a China-Thailand joint venture,
was incorporated.
A grand ceremony was held because the Phase II project of LuFeng
Company Limited was put into production.The Company won the title, "China Advanced Enterprise with an
Excellent Performance Model (2012)".
Lutai School of Textile and Apparel, Shandong University of Technology,
was founded.
Luthai (America) Textile Co., Ltd. was opened.The Company won the "Global Performance Excellence Award".The Company was granted the Third "China Industry Award".The unveiling ceremony of the Company's academicianworkstation was held in the West District Industrial ParkThe Company successfully passed the on-site accreditation ofdemonstration enterprises in the textile industry for energy-saving
and emission reduction technology application.Luthai's operating revenue exceeded RMB10 billion, a new start of
the new 30-year voyage.
Luthai issued RMB1.4 billion of convertible bonds.The Phase I project of the Functional Fabric Intelligent Ecological
Park was put into production.The project of coloured spun yarns was put into production.Luthai Textile was included on the list of the First China Industry
Carbon Peaking "Leaders" (enterprises).
Luthai Textile Company was restricted into a joint-stockenterprise with foreign investment and renamed Luthai
Textile Co., Ltd.Luthai became B-share listed.Yunjinchuan Clothing Manufacturing Co., Ltd. was acquired.
Beijing Luthai Shirt Co., Ltd. was established.
The Company passed the OHSAS18001 Occupational Health and
Safety Management System Certi?cationZibo Luqun Textile Co., Ltd. was established.LuFeng Company Limited was established.
Luthai was recognised as a "Stated-accredited EnterpriseTechnology Center" by ?ve departments, including the National
Development and Reform Commission and the Ministry of
Science and Technology.
Sustainability Report 2023Corporate GovernanceAbout UsChairman's StatementProduction and OperationsStrategies and Management
Employee's Rights and Bene?tsProduct ServicesEnvironmental ProtectionCommunity ParticipationLu Thai Textile Co., Ltd
Employee's Rights and Bene?tsProduct ServicesEnvironmental ProtectionCommunity ParticipationLu Thai Textile Co., Ltd
Sustainable Development Strategies and Management
End poverty in all its forms everywhere.
Take urgent action to combatclimate change and its impacts.
Conserve and sustainably use the oceans, seas andmarine resources for sustainable development.
Protect, restore and promote sustainable use of terrestrial ecosystems, sustainablymanage forests, combat deserti?cation, and halt and reverse land degradation andhalt biodiversity loss.
End hunger, achieve food security and improvednutrition and promote sustainable agriculture.
Ensure sustainable consumption andproduction patterns.
Ensure healthy lives and promotewell-being for all at all ages.
Make cities and human settlements inclusive,safe, resilient and sustainable.
Ensure inclusive andequitable quality education
Reduce inequality within and among countries.
Achieve gender equality and empower allwomen and girls.
Build resilient infrastructure, promote inclusive and sustainableindustrialisation and foster innovation.
Ensure availability and sustainable management ofwater and sanitation for all.
Promote sustained, inclusive and sustainable economic growth,full and productive employment and decent work for all.
Ensure access to a?ordable, reliable,sustainable and modern energy for all.The Company has conducted the project of rooftop photovoltaic powergeneration to contribute to the energy transformation of enterprises and society.
The Company actively has paid taxes to the governmentsof countries where it operates to promote the economicdevelopment of the surrounding communities.
The Company has implemented the policy of localemployment and provided regionally competitiveremuneration and bene?ts.
The Company has provided employees with a good and comfortableworkplace and protected the safety and health of employees.The Company properly prevented and treated occupational diseases.Besides, the Company has established and improved employees'pro?les of occupational health and organised annual check-ups toprotect the physical and mental health of employees.The Company has improved its employee education andtraining mechanism. In 2023, 22,850 employees participatedin vocational training, achieving a 100% vocational trainingcoverage rate.The Company organises activities to support students everyfall by providing employees' children with scholarships. It alsodonates educational funds to society to cultivate textile talent.The principle of gender equality has been observed. The LaborUnion has earnestly protected female employees and improvedtheir competence.An equal remuneration system has been developed to ensure equalpay for equal work between male and female employees.Production departments have been encouraged to proposenew measures to save water. The Company has increasedinvestment in reclaimed water reuse projects, furtherpromoting recycled use of water resources and providing along-term guarantee for social development.
By performing the digital and intelligent transformation ofproduction lines, Luthai has reduced labour intensity and raisedresource utilisation e?ciency.
In 2023, Luthai invested 240Millon in research funds in total.Additionally, it has been granted 485 patents in total, including eightsoftware copyrights. Luthai has organised or participated in theformulation of 51 national and industry standards.
The Company has established plants in overseas developingcountries, and actively created job opportunities to developlocal talents.
Diverse assistance activities have been conducted ineconomically backward villages. Luthai Textile has purchasedagricultural products from local farmers and donated dailynecessities to residents to improve their living conditions.
Sustainable development reports have been released regularly,and ESG-related information is actively disclosed to enhancetransparency.Meanwhile, the Company has updated the requirementsfor suppliers and implemented stricter standards of dutyperformance for suppliers. It has worked with suppliers andcontractors to actively perform duties to improve the industrialchain environment and drive social responsibility practice.
The Company has proposed new processes, reduced the COD valueof printing and dyeing wastewater, and protected water resourcesand aquatic animals.
Prior to the launch of a new project, the Company entrusts environmental assessment agencies to conduct environmentalassessment, including the assessment of the in?uence on local biodiversity.In the meantime, it earnestly performs greening governance, holds activities on Arbor Day, and enhances employees'awareness of environmental protection.
Luthai Textile has responded to the 2030 "carbon peak"and 2060 "carbon neutrality" goals by actively carryingout climate action plans.
No Poverty
Zero Hunger
Good Healthand Well-being
QualityEducation
GenderEquality
Clean Waterand Sanitation
A?ordable andClean Energy
Decent Workand EconomicGrowth
Industry,Innovation andInfrastructure
ReducedInequality
SustainableCities andCommunities
ResponsibleConsumptionand Production
ClimateAction
Life belowWater
Life onLand
Promote peaceful and inclusive societies forsustainable development, provide access to justicefor all and build e?ective, accountable and inclusiveinstitutions at all levels.
Strengthen the means of implementation andrevitalise the Global Partnership for SustainableDevelopment.
Luthai Textile includes health, safety, and environmentalrequirements in the bidding invitation requirements forsuppliers, thus indirectly urging suppliers and contractorsto enhance safety and environmental protection.
The Company has actively participated in industryorganisations and initiatives, joined multiple industryassociations, earnestly conducted industry exchanges,and promoted industry development.
Peace andJustice StrongInstitutions
Partnershipsfor the Goals
A company's sustainable development management shows the responsibility and respect of the company for itscustomers, employees, products, and future. For many years, Luthai Company has kept pace with international anddomestic development trends for years. By vigorously responding to national and industry policies, Luthai Companyhas demonstrated its sustainable development through actions.
Sustainability Report 2023Corporate GovernanceAbout UsChairman's StatementProduction and OperationsStrategies and Management
Employee's Rights and Bene?tsProduct ServicesEnvironmental ProtectionCommunity ParticipationLu Thai Textile Co., Ltd
Employee's Rights and Bene?tsProduct ServicesEnvironmental ProtectionCommunity ParticipationLu Thai Textile Co., Ltd
Strategies and ImplementationThe development strategy for 2022 to 2026: Lead the industry in green, low-carbon, and sustainable development.The Company strives to boost the development and pro?tability of new products, especially green and eco-friendly products that are bene?cialto sustainable development. It also develops low-carbon and environmentally-friendly products, and promotes energy saving and emissionreduction, to improve the level of green development.
Green and low-carbon management systemEstablish a green and low-carbon management system to manage energy and chemicals in a closed-loop manner.
Green energy use and recoveryPromote the use of green energy, such as green photovoltaic power, with green energy accounting for 7.7% of the total energy used by theCompany; persevere with the application of the water recycling technology, with the water recycling rate reaching approximately 60%;push ahead with the employment of waste heat recovery technology, with a recovery rate of 80%, saving 12,536 tons of steam every yearand reducing 2,902 tons of carbon emissions.
Green and low-carbon core technologiesPromote and demonstrate in the industry the packaged technology for automatic cheese dyeing, digital color transmission technology,high-?ux ?lms for printing and dyeing wastewater and recycling technology, and low-salt and low-water dyeing technology.
Chemical recyclingReduce the overall use of chemicals and the discharge of hazardous chemicals and reuse more than 99% of liquid ammonia.
Strategicdevelopmentgoals
Sustainable products
Supply chaintraceability
Climate campaignlaunched to achieve"carbon peak" and"carbon neutrality" goals
Release ofsustainability reports
The Sustainable Development Committee has been established to provide team support for sustainable development.
Sustainability Committee
ISO 9001 Quality Management SystemISO14001 Environmental Management SystemISO45001 Occupational Health and Safety Management SystemISO10012 Measurement Management SystemSA8000 Social Responsibility Management SystemWorldwide Responsible Accredited Production (WRAP)Business Social Compliance Initiative (BSCI)Sustainable Textile Production (STeP)OEKO-TEX Standard 100Global Recycled Standard (GRS)Global Organic Textile Standard (GOTS)
Organic Content Standard (OCS)China Environmental Labelling Program (CELP)CNAS-accredited labHigg Index (FEM/FSLM)Authorized Economic Operator (AEO) Program Certi?cationEUROPEAN FLAX StandardU.S. Cotton Trust Protocol (USCTP)ISO14067 Carbon Footprint of Products - Requirements and Guidelines forQuanti?cationProduct carbon footprint of Shandong Province
System Certi?cations and Joining Industry OrganisationsSustainability-related Certi?cations
WRAP
HIGG
Employee's Rights and Bene?tsProduct ServicesEnvironmental ProtectionCommunity ParticipationLu Thai Textile Co., Ltd
Participation in Industry OrganisationsThe Company has joined industry organisations and attended multiple industry seminars to contribute to the industry, make progress with itspeers, and create a better future of the Chinese textile industry.
Industry organisationsRole of the CompanyThe China Chamber of Commerce for Import and Export of Textiles (CCCT)
The China Dyeing and Printing Association (CDPA)The China National Garment Association (CNGA)The China Textile Engineering Society (CTES)The China National Textile and Apparel CouncilThe China Textile Enterprise Association (CTEA)The Chinese Association for Textile Enterprises Culture Construction
The China Research Institute of Enterprise CultureThe China Cotton Textile Association (CCTA)The China Council for Brand Development (CCBD)The China Federation of Industrial Economics (CFIE)The China Association for Quality (CAQ)The China Nonwoven & Industrial Textiles Association (CNITA)The Shandong Council for Brand DevelopmentThe Shandong Textile and Apparel Association (SDTAA)
A Sixth Vice Chairman OrganisationA Sixth Vice Chairman OrganisationA Seventh Standing Director OrganisationThe 26th Standing Director OrganisationThe Fifth Vice Chairman Organisation Specially InvitedThe Tenth Vice Chairman OrganisationThe Fifth Vice Chairman Organisation Specially Invited
The Vice Chairman OrganisationA Sixth Vice Chairman OrganisationThe Standing Director OrganisationThe Sixth Member Organisation
MemberThe Member OrganisationThe Standing Director Organisation
Rotating Chairman Organisation
Stakeholder Engagement
Government
Customers
Shareholders andinvestors
Communities andthe public
Employees
Value chain
partners
StakeholdersIssues of concern
Means ofcommunication
Actions of Luthai Textile
Operation inComplianceSafe and green
productionFul?lment of socialresponsibilities
Supervision and
inspection
VisitsMaterial providing
Strictly complying with laws and
regulationsActively responding to environmental
calls and formulating action plans
Helping the poor and improving
people's livelihoodsSupporting the public welfareImproving the product quality
management systemImproving the customer relationship
management systemConducting the customer satisfaction
surveyVisiting customers regularly
Compliant operations, openness, and
transparencySafeguarding the legitimate rights andinterests of shareholders by laws
Helping the poor and joining public
welfare activitiesCommunity donation and landscaping
Promoting employment and
developing local suppliers
Improving the remuneration
management systemImproving employee cultivation and
promotion mechanismsDiverse communication channels
Helping for employees in needSafety training and inspectionContinuously improving supplier
management procedures andstrengthening the control of
operational risksStrengthening contract management
and standardising credible
procurementSharing experience and technology
and exchanging needed goodsBuilding industry-university-research
platforms
Product qualityResponsible marketing
IntegrityRespecting customers'opinions
Customer visitsCustomer servicehotlineOpening businessoperations
Corporate governance
and pro?tabilityHonest and compliantoperationsCompetitive edge
General Meeting ofShareholdersOn-site surveyTelephone consultingInteraction Easy of theShenzhen Stock Exchange
A harmoniouscommunityrelationshipContributing to thecommunity economy
Supervision by themassesVisiting communities
Respecting human rightsRemuneration andbene?tsCareer developmentchannels
Health and safeproduction
The Labor Union and theemployee representativeassemblyEmployee complaint
Green and low-carbon
developmentHonest and compliant
operations
Exchange visits among
senior management
personnelExchange andcooperation in experience
and technologyDaily communication
Exchange throughindustry conferences
Employee's Rights and Bene?tsProduct ServicesEnvironmental ProtectionCommunity ParticipationLu Thai Textile Co., Ltd
Corporate Governance/BuildingExcellent Corporate Governance
Corporate governance is the core of modern corporate systems, andsound corporate governance is necessary for a competitive enterprise.Luthai continuously establishes and improves governance mechanisms,optimises governance structures, and actively implements compliancemanagement, risk control, and business ethics development. It alsoensures scientific and effective decision-making, and vigorously promotestechnological innovation in order to contribute to fully support theefficient operations of the Company and achieve high-quality growth.
Peace andJustice StrongInstitutions
Partnershipsfor the Goals
Sustainable Development Goals (SDGs) of the United Nations
Employee's Rights and Bene?tsProduct ServicesEnvironmental ProtectionCommunity ParticipationLu Thai Textile Co., Ltd
Business visionGovernance structure
Mission
Vision
Values
Creating wealth, contributing to society, clothing the world and
weaving our way to every corner of the globe
World-class and century-oldtextile enterprise
People foremost policy, rigorous scienti?c attitude, client-oriented principle and integrity for win-win outcome
Development of the Board of DirectorsAttaching great importance to board development, Luthai Textile continued to improve the board structure and functions, gave fullplay to the roles of board committees, paid attention to the independence and diversity of composition, and actively conductedtraining for the directors and the management. By doing so, the Company ensured e?cient board operation and scienti?c decision-making, thereby improving the overall management and operation efficiency. The Company's Board of Directors comprises 12directors, including four independent directors. A total of 13 meetings of the Board of Directors were held in 2023, with a fullattendance rate of directors. During the Reporting Period, 84 topics were deliberated on, covering equity incentives, policy revisions,regular reporting, pro?t distribution, related-party transactions, and share repurchases.
? Creating wealth and contributing to society:
? From the perspective of space:
? People-foremost policy:
? Client-oriented principle:
? Clothing the world and weaving our way to every corner of the globe:
? From the perspective of time:
? Rigorous scienti?c attitude:
? Integrity for win-win outcome:
The Company has always created value for its customers, sought happiness for its employees, created wealth for the societyand gained bene?ts for its shareholders. It will realise value while developing the economy and serving the society. It willalso ful?l its responsibility in saving resources, protecting the environment and engaging in public welfare. Through thesee?orts, it will assist in comprehensive and coordinated development of the material civilisation, cultural and ideologicalprogress and ecological civilisation, and share the fruits of cultivation with all members of the public.
The Company will seize the development trend in the industry, create a world-class high-end brand and tap the developmentpotential and lead the progress in the industry via technological innovation across the globe.
Giving top priority to human resources, the Company upholds the philosophy of "respecting people, relying on people,cultivating people and for the people", and respects labour, knowledge, talent and creation. It advocates for equalopportunities, fair competition and appointment of people by abilities. Besides, it cares about and has deep love for itsemployees by providing them with a good environment for working, living and learning. By doing so, the Company sharesthe fruits of development with its employees, and grows together with its employees.
Focused on customer demands as always, the Company endeavours to provide products to the satisfaction of its customers.With customer-oriented production and operation, it makes agile response to market changes, runs its business in aninnovative manner, provides customers with excellent products and services and dynamically meets personalised demandsof customers to improve customer satisfaction and loyalty.
Holding fast to the inheritance and innovation in the textile industry, the Company aims to create beautiful life throughyarn, decorate happy life with fabric, enrich the world with clothes and contribute to the progress in the textile and garmentcivilisation and harmonious development of the society.
The Company will base itself on and go beyond textiles, and ?nally embark on a journey to scienti?c development featuringenvironmental protection, low carbon, technology, and humanity. In this way, it will stand out in market competition andmake its undertakings ever-lasting.
Rigorous, responsible and conscientious, the Company seeks for ever greater perfection. Modest, prudent, e?cient andinnovative, it applies a realistic and pragmatic approach. Moreover, it follows the guiding principles of unity and discipline,industry and ambition, and commitment to excellence. It also adopts practical and realistic methods, makes overall plansand takes all factors into consideration, and gives prominence to the key points to boost institutional, regulated andstandardised work and achieve sound, stable and sustainable development.
The Company aims to establish stable, mutually trusted, ever-lasting and win-win partnership based on integrity, quality andservice. It abides by commercial ethics, keeps its word, serves customers heartily, treats employees sincerely and cooperateswith suppliers earnestly. It unites people, improves satisfaction of related parties and achieves win-win cooperation throughhonest operation.
The Company continuously improves the basic governance structure composed of the General Meeting of Shareholders, the Board ofDirectors, the Supervisory Committee, and the Senior Management, whose rights and responsibilities are de?ned in accordance with theCompany Law, the Securities Law, the Code of Corporate Governance for Listed Companies, the Guidelines No.1 of the Shenzhen StockExchange on the Self-regulation of Listed Companies - Standardized Operation of the Companies Listed on the Mainboard, and otherrelevant laws, regulations, and regulatory documents in order to ensure e?cient and standardised operations.The controlling shareholders strictly abide by relevant securities laws and regulations, actively regulate their own corporate governance,ensure the independence of listed companies in terms of business, personnel, assets, institutions, and finance, and support listedcompanies to give back to investors in various forms. Since its listing, the Company has been adhering to cash dividends every year andhas completed the ?fth B-share repurchase plan as of now. The Company conducts separate vote counting for the voting results of small-and medium-sized investors participating in the General Meeting of Shareholders. Since 2020, it has held annual performance brie?ngmeetings and timely disclosed communication records with institutional investors, fully protecting the right to information and votingrights of small- and medium-sized investors.
Organisational Structure of Luthai Textile Co., Ltd.
ChairmanSeniorManagement
Wholly-ownedSubsidiaries
FunctionalDepartmentsProduction Lines
Majority-ownedSubsidiaries
Branch Companiesand O?ces
General Meetingof Shareholders
Board of
DirectorsSupervisoryCommittee
StrategyCommittee
RemunerationCommitteeNominationCommittee
Audit Committee
Organisational structure
Employee's Rights and Bene?tsProduct ServicesEnvironmental ProtectionCommunity ParticipationLu Thai Textile Co., Ltd
Board Diversity
The Company values the diversity of the Board members, whose job responsibilities are determined by their professional experience. In 2023,the Board members included three foreign directors, accounting for 25%, and four female directors, accounting for more than 30%.Board governance structureThe Board of Directors perform 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 RemunerationCommittee. These special committees make full use of their expertise to make scienti?c decisions on the Company's development issues.Committee NameMain dutiesFunctioning of committee
Name of DirectorGenderAgePosition(s)
Date of servicecommencement
Conduct feasible studyon the Company'slong-term strategicdevelopment plansand major investmentdecisions, determine theCompany's developmentplans, improve investmentdecision-making process,enhance scienti?cdecision-making, andimprove the quality ande?ectiveness of majorinvestment decision.
Chairman: Liu ZibinMembers:
? Xu Zhinan, Liu
Deming, Xu Jianlv,Zheng Huisheng,Zhang Zhanqi,Zhang Keming, DuLixin, Zhou Zhiji, QuDongmei, Peng Yanli,and Quan Yuhua.
? In 2023, theCommittee held onemeeting, with a fullattendance rate ofthe members.
? In 2023, no meetingwas held.
? In 2023, theCommittee held twomeetings, with a fullattendance rate ofthe members.
? In 2023, theCommittee held sixmeetings, with a fullattendance rate ofthe members.
Study and formulate thecriteria and proceduresfor selection of theCompany's directors andsenior management,optimise the structuresof the Board of Directorsand the management,and improve corporategovernance structure.
Chairman: Qu DongmeiMembers:
? Liu Zibin, Xu Zhinan,Zhou Zhiji, and PengYanli.
Formulate and reviewrenumeration policiesand plans, formulate andimplement assessmentand evaluation criteria,improve the assessmentand evaluation system forthe Company's directorsand senior management,and formulate scienti?c,e?ective renumerationmanagement policies.
Chairman: Peng YanliMembers:
? Liu Zibin, Zhou Zhiji,and Qu Dongmei.
Responsible for thecommunication,supervision, and reviewof the Company's internaland external audits,strengthen the Board'se?ective oversightof the management,enhance internal controlcapabilities, and improveinternal control policies.
Chairman: Zhou ZhijiMembers:
? Zhang Keming and? Qu Dongmei
StrategicCommittee
NominationCommittee
Remuneration
Committee
Audit Committee
MaleMaleMaleFemaleMaleMaleMaleMaleMaleFemaleFemaleFemale
Liu ZibinXu ZhinanLiu DemingXu JianlvZheng HuishengZhang ZhanqiZhang KemingDu LixinZhou ZhijiQu DongmeiPeng YanliQuan Yuhua
Chairman,PresidentVice ChairmanDirectorDirectorDirectorDirector andVice PresidentDirector and BoardSecretaryGeneral AccountantDirectorIndependent DirectorIndependent DirectorIndependent DirectorIndependent Director
6 June 20076 May 200412 May 201710 June 202210 June 202210 June 202210 June 202210 June 202210 March 201910 June 201910 June 202210 June 2022
Employee's Rights and Bene?tsProduct ServicesEnvironmental ProtectionCommunity ParticipationLu Thai Textile Co., Ltd
Internal control auditing
Business ethics
The Company values the implementation of internal control. Following its 18 guidelines for internal control, the Companytested and assessed the system development and implementation of the internal control of the Head Office and holdingsubsidiaries. As a result, deficiencies in design and implementation were identified and improved effectively. In 2023, theCompany assessed the internal control of eight subsidiaries and issued the internal control assessment matrices, with aninternal control audit coverage of 82.15%.
Adhering to operations with integrity, law-abiding principles, and compliance, Luthai Textile has always emphasised that integrity and law-abiding principles are thefoundation of the Company, and always abode by the values of "integrity and win-win situation". Under the philosophy of operations with integrity, the Companyhas continued to strengthen the compliance management system, improve compliance management policies, optimise auditing procedures, and implement internalcontrol in order to safeguard healthy, sustainable development.
Innovation is the major driver of an enterprise's high-quality development. Luthai Textile continues to ramp up spending in scientific andtechnological R&D in order to push the intelligent and digital transformation of the Company. Also, it seeks strong support for the Company'slong-term development through the organic integration of information and industrialisation.
The Company attaches great importance to business ethics and strictly complies with laws and regulations of countries where it operates, aswell as the industry recognised code of conduct. It advocates honesty and trustworthiness, fair competition, anti-corruption, openness andtransparency, and supervises the business behaviour of partners, committed to creating an honest, fair, clean, and harmonious operatingenvironment.
Note: Internal control assessment coverage is the ratio of the total assets of the assessed entities to the Company's consolidated total assetsCompliance performance
Information disclosure
Innovative development
* As at the end of 2023, the Company had been rated A for six consecutive years in the information disclosure assessment on the listed
companies on the Mainboard by the Shenzhen Stock Exchange.* The Company releases its performance results as well as major and temporary announcements to investors of A- and B- shares viaInternet media (cninfo.com) designated by the China Securities Regulatory Commission as well as Securities Times, Shanghai SecuritiesJournal, China Securities Journal, and Ta Kung Pao.* The Company responds in real time to investors' messages and questions via the "Interaction Easy" of the Shenzhen Stock Exchange. In
2023, a total of 69 questions were replied, with a response rate of 100%.
The Company has established and improved the information disclosuremechanism, which received positive feedback from investors:
The Company strictly abides by theanti-corruption and anti-bribery lawsand regulations of countries whereit operates. It conforms to the anti-corruption and anti-bribery pledgesin the Company and with businesspartners, and continuously improvesthe supervision mechanism of anti-corruption to ensure the standardisedoperation of the Company. TheCompany conducts audits byrelevant policies every year. In 2023,the Company audited the auxiliarymaterial procurement and inventorybusiness and the sales business. Theaudit involved the selection of theprocurement unit, price inquiry andcomparison, bidding and tenderingmanagement, long-term inventoryprocessing, sales procedures, salespricing, payment and collection, andcash management. As a result, nocorruption or fraud was identi?ed.
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 emphasises the alliance with strategiccustomers and major suppliers", the Company has formed a three-level R&D innovation team led by Luthai EngineeringTechnological Institute, focusing on breaking through the professional expertise for production lines, and mainly comprisingthe quality control teams of the workshops and groups of the plants. By doing so, it has continuously enhanced the internalinnovation mechanism, developed the scienti?c and technological innovation platforms, deepened the industry-university-research cooperation, and laid a solid foundation for the Company's innovation cause.
The Company continues to strengthenemployee behaviour managementby strictly requiring employees to actin accordance with laws, guiding andsupervising employees to abide byrules and regulations, and operating incompliance. Through the promotionof corporate culture, publicity andeducation training of laws, inspectionand supervision of employee behavioursand other measures, the Company urgesemployees to raise awareness of ethicalstandards, and improve their ownmoral accomplishment, to ensure theimplementation of integrity values andethical behaviour, and thereby promotethe healthy development of variousbusiness.
The Company encourages allshareholders to advise and commenton its operation, actively improves thecomplaint reporting mechanism, widensreport channels, including reportingvia letters, phone calls, e-mails, or inperson, and pledges to protect thewhistleblower's privacy.
Compliance management
Scienti?c and technological R&D
Following the philosophy of operations with integrity, the Company has continued to improve the compliance management
system, strengthened the effect of internal auditing, and established the Self-assessment Control Matrix based on the
procedure documents in order to determine the assessment scope and priorities. With all procedures assessed, the on-
site testing has identi?ed de?ciencies, made suggestions for improvement, and timely produced the Internal Control Self-
assessment Report to ensure e?ective internal control assessment.
To promote normative and institutionalised 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 Ministry of Finance and the relevant laws and regulations. By doing so, it has e?ectively
improved the overall management and risk prevention capabilities.
Code of conduct
for employees
Complaint reportingmechanism
Anti-corruptionand bribery
Indicator (Unit)
Targets
Internal control audit coverage (%)
Senior leadersMiddle-level leadersand related functionsEmployeesShareholdersSuppliers
2021
2021Indicators
89.33%
Standard
Quantity of non-conformance eventsQuantity of non-conformance eventsQuantity of non-conformance eventsQuantity of non-conformance eventsExternal audit results
2022
2022
89.03%
Standard
2023
2023
82.15%
Standard
Compliance management system
? Ramping up spending in scienti?c and technological innovation
In 2023, the Company spent RMB240Million on technological R&D, developed 72 new products and processes, and carried out 170 projects ontechnological improvement.As at the end of 2023, the Company had undertaken eight national scientific and technological innovation platforms and five provincialplatforms, and received more than 48 rewards concerning national, provincial and ministerial scienti?c and technological progress awards, ofwhich, one was the First Prize of National Scienti?c and Technological Progress Award, and three were Second Prize of National Scienti?c andTechnological Progress Award. Furthermore, it had undertaken 19 scienti?c and technological plans of provincial and ministerial level, received485 authorised patents, eight software copyrights, and host or engaged in the formulation of 51 national and industrial standards.
Employee's Rights and Bene?tsProduct ServicesEnvironmental ProtectionCommunity ParticipationLu Thai Textile Co., Ltd
Protecting intellectual property rights
Industry-university-research cooperations
With the help of technological platforms such as the national enterprise technical centre,national demonstration base for talent introduction, national yarn-dyed fabric R&D base,Shandong Provincial Engineering Technology Research Center, and Shandong Big DataIndustry Innovation Center, Luthai Engineering Technological Institute has worked withproduction lines, for yarn-dyed fabric, knitted fabric, apparel, printing and dyeing, andfunctional fabric to conduct explorations. It has been dedicated to researching cutting-edgetechnologies. As a result, they have paved a path based on fabric but transcending traditionalfabric in scienti?c and technological innovation, quality improvement, brand promotion, low-carbon energy conservation, and corporate culture development.
The Company has established the "National Collaborative Innovation Center of Key Technologies for Textile Industry" with Donghua Universityfor research of new ?bre material technologies and key technologies for eco-friendly dyeing and ?nishing. In 2022, the Company participated inthe "14th Five-Year Plan" National Key R&D Program led by Donghua University. In July 2023, Academician Yu Jianyong, President of DonghuaUniversity, visited the Company to provide guidance and fully a?rmed the Company's research and innovation work. He also had an exchangeon further cooperation with Donghua University in the future.
Lyocell fabric is prone to fibre formation during printing, dyeing,and wearing, resulting in problems such as light colour, "frosting",and pilling during household washing, which is a major technicalbottleneck for the promotion and application of Lyocell. The Companycollaborated with Wuhan Textile University and Qingdao University toaddress key scienti?c di?culties related to the building of multi-leveland multi-scale supramolecular structures and the mechanism of?bre formation in Lyocell ?bres, as well as the rapid in-situ colouringand high-temperature moisture ?xation mechanisms of Lyocell ?bres.Additionally, research was also conducted on key technical di?cultiessuch as ant-fibre processing technology, green manufacturingtechnology and automation equipment, and low-carbon industrialproduction based on carbon footprint and water footprint processmanagement in the dyeing and ?nishing process of Lyocell ?bres.
With the development of textile circular economy, the recyclingand reuse of waste textiles has attracted much attention. Variouscountries have introduced policies to encourage the recycling ofwaste textiles, and more and more brand companies have begun torequire the recyclable and environmentally-friendly textiles. In thisproject, the Company collaborated with Qingdao Hong Da TextileMachinery Co., Ltd. and Jiangnan University to develop specialisedfabric opening and carding equipment, and study the openingand carding procedure and process parameters. The Company hasachieved pre-consumer recycled cotton with cone-winder wasteof 22 to 23 mm, and recycled cotton with cutting fabrics of 17 to18 mm, meeting the spinning requirements of 20% to 100% forrecycled cotton in 10 to 30 s and 20% to 25% for recycled cottonin 30 to 40 s. The developed products have been recognised bydomestic and foreign customers.
Luthai Engineering Technological Institute has capitalised on the design resources of thenational industrial design centre, the Shandong Provincial industrial design centre, an Italiandesigner's workshop for fabric design, and the enterprise brand design centre to build atextile and apparel design platform. The platform has integrated textile and garment trendydesign, textile new material design, popular fabrics design and garment brand design, whichrepresents the major backbone of the enterprise's independent brand building and promotesthe Company to take leap from creation to creativity.
Luthai owns a complete set of testing devices and equipment for textile materials, fabrics,and garments, as well as dyeing and ?nishing auxiliaries. It is equipped with laboratories thatmeet international standards, including the constant temperature and humidity laboratory,textile material testing laboratory, fabric and garment laboratory, and chemical analysis andsynthesis laboratory. Also, it has an experienced professional testing team that is familiarwith domestic and overseas standards. As a result, Luthai has made every e?ort to establishan integrated testing and inspection platform in the textile and apparel industry at home andabroad.
? Developing scienti?c and technological R&D platforms
The Company highlights the building and development of scientific and technological innovation platforms, establishing core technologyplatforms in the major phrases of research, design, and test to improve core technologies in the whole process.
Textile garmentresearch platform
Textile garment
design platform
Textile garment testing
and experimental
platforms
? Key R&D projects
? Major cooperation with universitiesDonghua University
"Lyocell Fibre Green Manufacturing" project
Exchanging with Academician Yu Jianyong
"Research on Processing Technology and Application of
Recycled Cotton" project
The Company attaches great importance to the protection of intellectual property rights, constantly improves the protectionsystem of intellectual property rights, sets up teams for the protection of intellectual property rights and patents. Moreover, itformulates trademark management standards, patent application management procedures, stands against the infringementof trademark rights, patent rights, and copyrights, and continues to improve the holistic operation e?ciency in protectingintellectual property rights. In 2023, the Company obtained 43 authorised patents, including 36 invention patents, and wassuccessfully selected as a "National Intellectual Property Advantageous Enterprise", marking that the Company's achievementsin innovation ability, R&D ability, patent protection and other intellectual property aspects were authoritatively recognised bythe national intellectual property management departments.
The Company collaborates with many universities and scienti?c institutes, ranging from the training of basic talents and coretechnology R&D. Luthai has explored and established an all-round industry-university-research collaboration mechanism withmany institutes. As at the end of 2023, the Company established a long-term partnership with universities such as DonghuaUniversity, Hong Kong Polytechnic University, Jiangnan University, Qingdao University, and Wuhan Textile University. ThroughR&D cooperation with leading institutes in new technologies, materials, and products, the Company has improved its R&Dcapability.
Employee's Rights and Bene?tsProduct ServicesEnvironmental ProtectionCommunity ParticipationLu Thai Textile Co., Ltd
Luthai Textile has maintained an open attitude toward technological R&D and kept strengthening the industry-university-research cooperation. It has developed green and low-carbon technologies both independently and through cooperation and hascontinuously optimised the Company's clean production mode. As a result, the Company's green and sustainable developmenthas been constantly boosted. Over the years, more than 480 technologies of the Company have been patented. Among them,in 2023, the "Preparation Device and Method for Cellulose Filbe Cheese Online Dyeing Colour Point Yarn" won the China PatentSilver Award, achieving zero breakthrough in the national-level patent award honours; the "Weft-knitted Shirt Fabric and ItsProduction Process" won the patent gold award by the China National Textile and Apparel Council, and the "Spinning Method ofVortex Spun Yarn with Ring Spinning Characteristics and Vortex Spinning" won the high-value patent in Zibo City.
The Company has cooperated with the Shandong University of Technology in establishing the Luthai School of Textile and Apparel, therebypromoting organic industry-education integration, collaborative innovation, and integrated industrial-educational development.? The Company has also worked together with the university to establish laboratories and share research apparatus and platforms, achieving
research integration in terms of the scienti?c program development and project application.? A team of part-time teachers, including Taishan Scholars, senior experts of the Company, and excellent technological talent, has been built
to achieve the integration of teaching resources of the university and the Company.? The Company has utilised the comprehensive strengths of both sides to introduce more practice and internship opportunities for students.
It donates RMB1 million to the university for collaborative talent cultivation every year. Meanwhile, the "Luthai Scholarship" has been set
up to encourage students to work hard, achieving "joint talent cultivation" between the university and the Company.? In 2023, the Company established a targeted service mechanism with youth teachers from Lutai School of Textile and Apparel, Shandong
University of Technology to conduct research on the Company's challenging projects, and jointly applied for and built the Engineering
Research Center for the Functional Textile and Ecological Dyeing and Finishing in Zibo.
Shandong University of Technology
Preparation Device and Methodfor Cellulose Filbe Cheese OnlineDyeing Colour Point Yarn
Weft-knitted Shirt Fabricand Its ProductionProcess
Dyeing Method for PolyesterYarn with Halo Dyeing StyleFancy Wrap Yarn withBamboo Knot Effect andits Spinning MethodIn 2023, the Company focused on tackling key areas such as new materials, new technologies, new processes, and newfunctions. Luthai aimed to reserve new products in terms of materials, functions, technologies, and processes based onthe development trends market demands, overcome current technological and product pain points and implementationdi?culties, continuously meet potential customer needs, and enhance the Company's market competitiveness.
Innovation in production technologies
Communication with Teachers from Shandong University of Technology
? In terms of scienti?c research, Qingdao University and the Company have jointly established the "Luthai 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 ?bre.? In terms of talent cultivation, the Company has set up the "Luthai Scholarship" in the university and the "Luthai International Talent
Reserve Class". As a result, a number of brilliant students from textile universities have been attracted to Luthai and become the backbone
of the Company.? In 2023, the Company collaborated with Qingdao University to conduct research on "Lyocell ?bre green manufacturing" and achieved good
results.
The Company signed a strategic collaboration agreement with Qingdao University in 2016 to carry out in-depth cooperation with the universityin scienti?c research, talent cultivation, and social services, thereby contributing to socioeconomic and technological development.Qingdao University
Technical Exchange Meeting with Qingdao University
Employee's Rights and Bene?tsProduct ServicesEnvironmental ProtectionCommunity ParticipationLu Thai Textile Co., Ltd
Production and Operations/Responsible Production andOperationsIn line with the principles of being responsible to customers, employees, andsociety, Luthai implements the philosophy of "responsible production andoperations", improves safety production mechanisms, enhances chemicalsafety management, and regulates supplier behaviours with high standards.The Company is committed to providing customers with reliable productsand employees with a safe workplace, minimising social impact during soundoperations, safeguarding the rights and interests of stakeholders in multipleaspects, and achieving the long-term stable development of the Company.
ResponsibleConsumptionand Production
Sustainable Development Goals(SDGs) of the United Nations
Employee's Rights and Bene?tsProduct ServicesEnvironmental ProtectionCommunity ParticipationLu Thai Textile Co., Ltd
Production safety, involving employees' life safety, is the key to the survival and development of the enterprise. Its responsibilities are weightierthan Mount Tai. Luthai insists on the principle of "safety ?rst, prevention ?rst and comprehensive management", and implements national, localand industrial policies, laws and regulations and standards on safety work. The Company consciously carries out all rules and regulations ofproduction safety and supervises the implementation.
Eradicate ?re risks and personal casualties
Eliminate grand electromechanicalequipment accidentsPrevent the accidents of major environmentsand occupational health and safety
Avoid tra?c accident
Building of safety management system and mechanism
Building of safety management system and mechanism
The Company's safety control targets
in 2023
The Company has implemented that the safety facilities in construction must be designed, constructed, approved and put into production anduse at the same time as the main project to control and prevent safety accidents from the source.
The Company continues to improve the dual prevention system for hierarchical control of production safety risk and investigation andgovernance of hazards, and persists in risk prevention and early identi?cation. In terms of hierarchical risk control, the Company identi?es therisk hazards in operating activities and equipment and facilities in each sector every year, classi?es the types and consequences of possibleincidents, and determines the hierarchy of control and the corresponding accountable person according to the category. In 2023, the Companyidenti?ed a total of 269 risk hazards in various production and operating activities. For each risk hazard, the Company has formulated speci?crisk control measures to prevent and control risks by ways such as standard speci?cation, safety training, distribution of supplies for labourconservation 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 O?ce carried out various inspections in 2023, such as special inspectionof dust explosion-proof, diagnosis of invited safety experts, 100-day clearing campaign, special inspection of warehouse, general inspectionduring the holiday, and departmental self-inspection and self-correction, which identi?ed more than 21,000 safety hazards. During the ReportingPeriod, all risk hazards were eliminated.
The Company organises special safety training sessions
The Company is conducting an on-site safety hazard inspection
The Company organises safety training formanagement members
In terms of safety training, the Company carried out the training of the ?rst lesson after the Spring Festival, Qingming Festival, Mid-AutumnFestival and National Day, and organised a series of special training in 2023, such as 27 training sessions for new employees, 73 safety trainingsessions for all employees, nine training sessions for special operators, two training sessions from invited external experts, special equipmenttraining, and certified safety engineer training. Moreover, the Company has implemented the government's special action requirements on"deep learning, deep training, wide examination" for safety production, and achieved the normalisation of safety training and learning. Inaddition, the Company has conducted "Safety Production Month" activities with the theme of "everyone values safety and knows how to handleemergencies", aiming to prevent and defuse major risks, eliminate potential safety hazards in a timely manner and e?ectively curb productionsafety incidents, and ?nally create a sound environment for safety production. In the whole year of 2023, the Company conducted more than 100various safety training sessions with over 13,000 trainees.
Production safety management
□The Company has
continuously improvedsafety productionstandardisation templates,conduct internal safetystandardisation reviews forvarious departments, andsupervised and inspectedthe implementation ofsafety standards in variousplants.
□The Company has set
up a Safety ProductionCommittee and an AccidentEmergency Rescue LeadingGroup around the SafetyInspection O?ce, with atotal number of 68 safetymanagement personnel.
The Company hasestablished the safetyproduction targetsmanagement responsibilitysystem and signed theResponsibility Letter forSafety Production TargetsManagement at all levels.Besides, the Company hasbroken down the accidentcontrol targets by levelsand implemented strictassessments of personnelat all levels to ensure theful?lment of the safetyproduction control targets.
010203
Employee's Rights and Bene?tsProduct ServicesEnvironmental ProtectionCommunity ParticipationLu Thai Textile Co., Ltd
The Company is conducting an emergency drill
The Company is conducting an emergency drill
Fire safety comics
The Company has established a sound production safety emergencymanagement system and actively carried out emergency responsedrills to comprehensively improve its capacity for emergencyresponse and accident rescue. For example, it has formulated severalresponse plans such as Regulations on Emergency Preparedness andResponse Management, Emergency Preparedness and Response forFire Accidents, Emergency Preparedness and Response for HazardousChemicals Leakage Accidents and Emergency Preparedness andResponse for Natural Gas Leakage Accidents. In 2023, the Companyorganised each plant to conduct emergency response drills, including30 special response drills and 166 on-site disposal drills, and carriedout a total of 15 "Emergency Rehearsal Training" in the "SafetyProduction Month" activities.
During the "Safety Production Month" campaign in June 2023, the Company has conducted a variety of activities such as publicity boarddesign, special training on safety production, inspections on potential safety hazards, award-winning essay contests, safety photographer,short videos on safety dissemination, emergency response drills, and cross-talk and sketch parties. All employees who participated in theactivities raised their safety awareness.
The Company organised various departments to carry out publicity board design activities with the theme of "everyonevalues safety and knows how to handle emergencies", which had created a total of 50 boards.All departments and subsidiaries organised a total of 359 teams to participate in the inspection on potential safety hazards in the"Inspection, Protection, and Promotion" activity, with a total number of 8,079 participants and a total of 4,992 identi?ed safety hazards,and ?nally selected 74 outstanding teams.Besides, 17 publicity activities on "civilised and safe travel" were conducted.
The "An Kang Cup" award-winning essay contest received a total of 86 outstanding essays from various departments, and ultimatelyawarded two ?rst prizes, three second prizes, ?ve third prizes, and ?ve excellent prizes.A cross-talk and sketch evening party was held with the theme of "everyone values safety and knows how to handle emergencies".The Company carried out the "Safe Shooter" activity and collected 154 works, of which 19 were selected as excellent works by theEmergency Management Bureau of Zichuan District.
As a key unit of fire safety, the Company implements the working policy of "prevention first with a combination of fire prevention and?re?ghting", standardises ?re safety management procedures, strictly implements ?re safety management regulations to e?ectively prevent ?reaccidents and guarantee the implementation of emergency rescue. In addition, these measures minimise property damage and personnel injurycaused by ?re occurrence and ?re rescuing.The Company's Security O?ce conducts annual planned ?re safety knowledge training, critical parts protection training, and ?re drills for eachdepartment and plant to improve the ?re safety awareness and accident handling ability of all employees. Each department strictly implementsthe Hot Work Management System, Fire Inspection System, and Electricity Safety Management System. The 5G smart sharing managementplatform jointly developed by Luthai and China Mobile integrates security management and ?re monitoring functions. Through multi-functionalapplications such as intelligent brain engine, security monitoring, park access, smart ?re protection, and wireless intercom, the Company hascomprehensively built an "information sharing, intelligent and e?cient" security management and ?re monitoring integrated control system.This has made safety management three-dimensional, emergency support intelligent, and emergency response collaborative, making the safetymanagement of the Company's ?re and public security more e?cient.
Visible ?re monitoring
Fire?ghting and evacuation drill
Fire safety hazard inspection
Test on automatic sprinklers system
Employee training on criticalparts protection
Major ?re safety incident19,072 (hours)
290 sessions (64 sessions at night)
2,981 (items)
14,348 (points)
1,998 trainees
0 (times)
"Safety Production Month" activities in various forms
Production safety emergency management
Fire safety management
Employee's Rights and Bene?tsProduct ServicesEnvironmental ProtectionCommunity ParticipationLu Thai Textile Co., Ltd
The Company controls the whole process of procurement, transportation, storage, use and disposal of chemicals, especially for the purchaseand use of hazardous chemicals. Moreover, the Company has formulated management systems and regulations such as the Safety ManagementSystem for Hazardous Chemicals, the Regulations on the Supervision and Inspection of Hazardous Chemicals, the Safety Management Systemfor the Storage, Handling and Use of Liquid Ammonia, and the Regulations on the Supervision and Inspection of Major Hazard Installations ofLiquid Ammonia, prompting each operation to be standardised, detailed and normalised.
The Company is conducting an emergency response drill for ahydrogen peroxide leakage accident
As the international awareness of environmental protection and product safety grows, the demand for green production and environment-friendly products has become a major trend. Luthai, an international manufacturing enterprise, naturally does not hesitate to keep up with thetimes and has established a whole process chemical control mechanism.Source control:
According to the requirements of laws and regulations, standards, instructions and customers' restricted substances list (MRSL) of each countryand region, the Company has established chemical approval system and Manufacturing Restricted Substances List (MRSL) which is stricterthan market regulations/standards. When chemicals for production pass the application test, the Company will entrust the third-party testingorganisation to conduct the test on toxic and harmful chemicals. For suppliers with test results in conformity with MRSL, they are included inthe list of quali?ed suppliers and then can be used for bulk purchase. Meanwhile, the Company strengthens the application of e?cient andenvironment-friendly dyeing auxiliary to eliminate the production of toxic and harmful chemicals from the source.Production process control:
The Company reduces pollution caused by chemical use through measures such as establishing a Chemical Inventory List (CIL), improving theprocess to increase the utilisation of chemicals, and recycling use of chemicals (e.g. liquid ammonia recovery).Terminal management:
Besides, the Company tests the discharged wastewater and sludge for toxic and harmful chemicals according to the wastewater guidelines ofZero Discharge of Hazardous Chemicals (ZDHC) twice a year to ensure zero discharge of toxic and harmful chemicals.In accordance with the MRSL information in market laws and regulations, standards and brands, the Company has developed its owncomprehensive MRSL and statement of conformity, and requires all suppliers of chemicals for production to sign the statement of conformity toguarantee that their products meet the restrictive requirements for toxic and harmful chemicals.
The Company is conducting a ?re hazard investigation
Fire?ghting and evacuation drill
The Company organises "119 Fire Safety Publicity Month" activities
Chemical management
Purchase, storage and use management
Control of restricted substances
For precursor chemicals and explosive chemicals, the Company strictly complies with national regulationsand reports to the public security authorities in a timely manner. The Company establishes a chemical ?owledger and strictly controls the use to prevent the out?ow and illegal use of such chemicals.
When each chemical is ?rst purchased in the year, a complete MSDS list should be requested from thesupplier and hung at the chemical usage and storage site.
Each user department should establish and improve the safety management system and emergency plansfor hazardous chemicals, assign dedicated personnel to be responsible for the management of hazardouschemicals, and clarify responsibilities to individuals.Annual training is conducted for chemical users in each plant, explaining the characteristics and hazards ofthe chemicals used, as well as how to handle and self-rescue after spillage or contact with human eyes orskin, and urging employees to store and use them correctly.
Employee's Rights and Bene?tsProduct ServicesEnvironmental ProtectionCommunity ParticipationLu Thai Textile Co., Ltd
Through a new generation of integrated and collaborative platform (ERP system) based on Internet services and technical architecture,the Company has realised the information flow in the whole process from supplier access to purchase warehousing. This has ensured theinformation ?ow in all processes of the supply chain, improved the e?ciency of raw material supply, and made the purchase process morestandardised and transparent.When selecting suppliers, the candidates are required to possess relevant product qualification certification and have manufactured sameor similar products for at least one year with a certain production scale. Priority will be given to suppliers who have obtained authoritativecerti?cations such as the ISO 9001 Quality Management System Certi?cation, the ISO14001 Environmental Management System Certi?cation,the ISO45001 Occupational Health and Safety Management System Certification, the SA8000 Social Responsibility Management SystemCerti?cation, and the Green Factory Certi?cation.Additionally, the Company conducts on-site audits on suppliers to fully understand their production and quality control processes, as well asful?lment of their social responsibilities. Only after the products are quali?ed for use can they be included as quali?ed suppliers.In terms of routine management, the Company signs the Quality Agreement, the Code of Conduct for Suppliers, and the EnvironmentalDeclarations with suppliers, and regularly investigates their basic situation. The Company also conducts semi-annual and annual supplierassessments according to di?erent raw material suppliers, and classi?es suppliers based on the assessment results.Procurement managementIn terms of procurement, whether to invite bids is determined based on di?erent materials and the annual procurement amount. If bidding isrequired, the Bidding O?ce will conduct publication and assessment to select winning bidders. The Procurement Department drafts contractsbased on the bidding documents and the bid documents of the winning bidder, and conducts subsequent procurement after being reviewedby the Legal A?airs Department and approved by the President. For those that do not require bidding, the Procurement Department selectssuppliers from the List of Quali?ed Suppliers, conducts price inquiries and comparisons, con?rms purchasers, and proceeds with subsequentprocurement work.For dyeing aids, raw cotton, and yarn, we prioritise products certi?ed by Bluesign, GOTS/OCS, and GRS. We continue to promote the use ofrecycled polyester, recycled nylon, recycled tencel and recycled cotton to improve resource utilisation.For each batch of products purchased, the sampling inspection system is implemented to control the input of unquali?ed materials from thesource.Warehouse managementThe Company sets up warehouses for storing and managing corresponding materials such as raw cotton, yarn, and chemicals. Each batch ofincoming materials is ?rst inspected for appearance and sampled by the Quality Control Department. Only after passing the inspection can theybe stored in the warehouse. A material inventory ledger is established for real-time material ?ow and inventory status in the material requisitionprogram.Internal controlThe internal control evaluation is carried out by the Audit Department of the Company every year, so as to timely identify the loopholes and risksin the supplier management procedure, which lays a solid foundation for the building of a responsible supply chain.
Whether a reasonable supplierevaluation and access systemis established to examine theauthenticity and legitimacy of thesuppliers' quali?cation and reputation.
Whether the suppliers are selectedaccording to the principle of fair and justcompetition, and the quality assuranceagreement is signed with the supplierson the basis of e?ectively preventingthe risk of fraud.
Whether the supplier management information systemand the supplier elimination system are set up, so asto conduct real-time management, assessment andevaluation on the quality, price, delivery timeliness,supply conditions, quali?cation and reputation,operating status of materials or services providedby suppliers, and adjust the selection or retention ofthem according to the assessment results.
The Company attaches great importance to the openness and transparency of chemical information and data, publicly releasing DETOX data ondischarged wastewater twice a year at the ZDHC GATEWAY and the Institute of Public and Environmental A?airs (IPE), and releasing PollutantRelease and Transfer Registration System (PRTR) data once a year at IPE. At the same time, the Company communicates and interacts withsuppliers, customers, third-party testing organisations, non-governmental organisations and other relevant parties to achieve sustainableimprovement of chemicals management.
Data releasing platform
Supply chain management
Supplier management
The main contents of internal control evaluation include
Sustainability Report 2023Corporate GovernanceAbout UsChairman's StatementProduction and OperationsStrategies and Management
Employee's Rights and Bene?tsProduct ServicesEnvironmental ProtectionCommunity ParticipationLu Thai Textile Co., Ltd
Management of chemical suppliersSelection of new suppliersDaily evaluation of suppliersOn-site audit of suppliersApproval/removal of qualified suppliers· Supplier Quality and Safety AssuranceAgreement· Declaration of Environmental Conformityof Chemicals· Declaration of Environmental Conformityfor Raw Materials and Auxiliaries
Safety Management Process of Textile ChemicalsProvisions for the Management of DepartmentalChemicalsProvisions for the Management of Procurement ofSizing Agents, Dyestuffs and AuxiliariesProvisions for the Management of Safety Control forWarehouse Management Department
Brand customersChemicalsWater qualitySludgeProduct
GovernmentNon-governmental organisationsCustomers and brands
ChemicalsTextilesWastewaterSludge
Tap waterDyeing drainageWarp sizing drainageOrganisation of drainage
Information disclosure throughIPE
Luthai reduces the level of pollutants throughefficient chemicals management and goodprocess control. Meanwhile, the Company workstogether with relevant parties such as majorbrands in the supply chain, suppliers, chemicalindustry and non-governmental organisations toreduce the impacts on the environment.
Compliance screening of MaterialSafety Data Sheet ("MSDS")Initial identification of harmfulchemicals according to the type ofauxiliariesThird-party testingAnalysis and tracking of testing data
Substitution of dyeing auxiliaryReduction of dyeing auxiliaryEmission reductionShort process...
Understand relevant laws andregulations and documents
Create a list of concerns onharmful substance
Process testing and validation
Participation in green activities
Management of procurement, storage, use andother aspects of chemicals
Creation of a testing data list
Ways to identify harmfulchemicals
Green technology
Inputmanagement
Productionprocess
Output-endmanagement
Employee's Rights and Bene?tsSustainability Report 2023Corporate GovernanceAbout UsChairman's StatementProduction and OperationsStrategies and Management
Product ServicesEnvironmental ProtectionCommunity ParticipationLu Thai Textile Co., Ltd
Employee's Rights andBene?ts/Building a HarmoniousWorkplace To getherEmployees are the driving force and innovation source ofcompanies. Discovering the potential and stimulating theownership spirit of employees is the key to the successof enterprises. Lu Thai Textile implements a humanisticculture centred on caring employees, meeting theirneeds to the greatest extent possible while ensuring thatemployees have a healthy and safe workplace. We provideemployees with a platform to show themselves and improvetheir abilities, consolidate their knowledge and skills,enrich their leisure life, and assist employees in solvingdifficulties. We truly care for and love our employees.
(Sustainable Development Goals (SDGs) of the United Nations
Employee's Rights and Bene?ts
Sustainability Report 2023Corporate GovernanceAbout UsChairman's StatementProduction and OperationsStrategies and Management
Product ServicesEnvironmental ProtectionCommunity ParticipationLu Thai Textile Co., Ltd
The Company posts warning signs andoccupational hazard notification cards inprominent positions in the workshop.
The Company pays high attention to its employees' occupational health and safety, so it has established and improved the management systemof occupational health and safety, implemented risk control measures, and actively inspected and responded to occupational disease hazards,so as to ensure that each Lu Thaier's health and safety are free from impairments.Health and safety
Occupational hazardous factorsCountermeasures
Dust
High temperature andhigh humidity
Noise and vibration
Take airtight, ventilating, and dedusting measures for cotton blendingmachines and scutchers in pre-spun process.Adopt the approach of wet sweeping for the workshop to take awaythe dust accumulated on the surface as much as possibleRegularly clean the air ductDistribute dust masks that conform to international speci?cationsDistribute items for heatstroke prevention for high-temperature postsin the workshopAdd Auricularia auricula and pig blood curd to workshop meals toenhance employees' ability to defend against occupational diseasesAdjust the air supply and exhaust volume in the workshopEquip employees with disposable noise-reducing earplugs and replacethem regularly
Before going to their posts, new employees haveall undergone pre-job physical examinationsto avoid personnel with occupationalcontraindications from working in the relevantposts; employees have undergone on-the-jobphysical examinations, and their work will beallocated according to the results; and whenleaving their posts, employees have undergonepost-job occupational physical examinationsto ensure that employees leave their posts inhealthy condition.
The Company conducts emergency rescue drillsonce or twice a year for relevant departments andworkshops to ensure timely handling of hazards.The Company has conducted regularoccupational health education and trainingfor employees, and established occupationalhealth surveillance archives for employees,realising the standardised managementfeaturing "one archive for one person".
The Company popularises health careknowledge each month, and provides first-aid medical kits for employees, with first-aid medicine supplemented for 270 times onaverage per month in 2023.The Company distributes heatstrokeprevention drugs in summer for convenient useby employees.The Company regularly maintains and repairsoccupational hazard protection facilities toensure their integrity and e?ectiveness.
In 2023, no any major public health eventsoccurred in the Company.
Measurestaken
Safeguarding the rights and interests of employees
Respect and equality
Protection of human rights and labourers' rights and interests
In interview process, the Company activelyexamines identity cards, diplomas, etc.,to prevent child labourers or underageworkers who have not finished legalcompulsory education from beingrecruited by mistakes.A fair competition mechanism is adoptedfor promotion. The performance,abilities, and potential of employees willbe considered to select the best ones.
In the course of production and operation,at the request of the local governmentor third-party institutions, the Companyactively carries out due diligence onhuman rights protection.
The Company is committed to putting anend to all forced or compulsory labour.Employees are free to leave the workplaceafter completing the work needed to bedone within standard working time. Thedeclaration system must be implementedfor overtime work to ensure that overtimework is a voluntary act of employees.
The Company has always adhered to the principle of equal and friendly employment. It strictly complies with the laws, regulations, andrequirements of regulatory authorities of the countries where the Company 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 Employmentand 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 andretention 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, colour, language, domicile place and other personal characteristicsunrelated to work. The Company respects the rights of every employee, and provides equal and free development space for every employee.
The Company has established a sophisticated remuneration and welfare system for employees, paid basic endowment insurance,medical insurance, work injury insurance, and unemployment insurance for employees according to laws, and provided suchleaves as paid annual leave, home leave, marriage leave, breastfeeding leave, and work injury leave for employees according to thenational standards. Lu Thai has also actively unblocked communication channels for employees, and established and improved suchmechanisms as the Trade Union, employee representative assembly, and employee complaints. The Company has regularly carried outemployee satisfaction surveys, to ensure that employees' aspirations can be timely conveyed to the management, and given feedback intime, to reasonably safeguard employees' rights and interests.
Indicator (Unit)202120222023Employment contract signing rate (%)Social insurance coverage (%)
Protecting
equity
Employee's Rights and Bene?ts
Sustainability Report 2023Corporate GovernanceAbout UsChairman's StatementProduction and OperationsStrategies and Management
Product ServicesEnvironmental ProtectionCommunity ParticipationLu Thai Textile Co., Ltd
Diversity and Inclusion
22,6329,593
13,039
10,520
12,112
1,3364,57616,720
6,08119%22,632
100%
23,0289,736
13,292
9,866
13,162
1,4004,52317,105
7,31321%23,028
100%
22,8509,317
13,533
9,671
13,179
1,3193,72617,805
3,33813%22,850
100%
Indicator (Unit)202120222023Employee diversity
Employee age
Education background of employees
Nationality
Employee turnover
Employee training
Total number of incumbent employees(person)
Total number of employees agedunder 30 (person)Proportion of employees aged under30 (%)Total number of employees agedabove 30 (person)Proportion of employees aged above31 (%)
Total number of male employees(person)Total number of female employees(person)Proportion of female Employees (%)
Bachelor or above (person)
China (%)
Total number of new employees (person)Employee turnover rateTraining participants (person)Average training hour (hour)Training coverage rate (%)
Foreign employees (%)
Junior college (person)High school or below (person)
Proportion of male employees (%)
Democratic management
To ensure that the opinions of employees on the Company's management is fully conveyed and to encourage their participation, theCompany's Labor Union collects employee opinions and suggestions through various channels.? Every year, employee representatives are elected through employee elections, and the Labor Union regularly holds employeerepresentative assemblies to promote activities of the Labor Union and communicate with employees? Suggestion boxes are set up in various plants and departments of the Company to collect employees' opinions on the Company's
policies, management processes, and salary bene?ts. The Labor Union sort out them once a month and provides feedback to theCompany's senior leadership to discuss improvement plans? A chairman reception day is established to communicate face-to-face with employees? Hotlines and email addresses are set up to encourage employees to actively voice their opinions on the Company's developmentEqual payThe remuneration system of Lu Thai Textile is divided into working hour remuneration system and piecework remuneration system so thatwages are distributed in a balanced way based on types of work. On the basis of the systems, the Company constantly improves employeeremuneration structure, develop promotion mechanisms, and promises not to di?erentiate the treatment for employees in remunerationand promotion due to elements of non-work ability such as gender, religion, and ethnicity of employees.
The Company always pays attention to the rights and development of female employees and always puts special protection for femaleemployees into practice. Therefore, the Company has formulated the Management Procedure for Protecting Female Employees, carriedout various publicity, education, and entertainment activities to promote the physical and mental health development of femaleemployees, enhance their con?dence in overcoming the dual pressures of work and life, and enable them to maintain a good state inprofessional competition.
Caring for female employees
Measures taken:
? The Company has refused gender discrimination, and recruited females under equalconditions.? The Company has ensured career development of female employees, and provided broaderdevelopment space for female employees.? The Company has established a female employees' committee to assist female employees in
solving their di?culties of life and work, and safeguarding their rights and interests.? The Company has established a psychological counselling office to facilitate employeecommunication, emotional counselling, and resolution of work and life di?culties.? In 2023, new training courses for female employees, including yoga, makeup, and ?oral art,were added. The Company organised 17 times of training and learning in total, of which, fourtimes were conducted on site, and approximately over 3,161 learners.? The Company has organised various activities such as expert psychological counselling,reading, writing, visits, ?tness, and pastry making to promote the overall quality improvementof female employees.? The Company has set up lounges for pregnant women to provide a comfortable andconvenient resting environment for pregnant mothers. In 2023, the lounges for pregnantwomen of the 3rd fabric weaving plant of Lu Thai were rated as "Mom's Cabin" by themunicipal labour union, while the lounges for pregnant women of the 4th garment plant and4th fabric weaving plants were rated as "Mom's Cabin" by the district labour union, and fundswere allocated for purchasing supplies and routine maintenance.? The Company has organised physical examinations for married female employees once ayear. In 2023, totally 2,803 married female employees were organised to undergo physicalexaminations, with the expenses of physical examinations amounting to more thanRMB70,000. To meet the further needs of employees, experts from the physical examinationhospital were specially invited to provide free consultations for employees who had breastand thyroid abnormalities during the early-stage physical examination.
Employee's Rights and Bene?ts
Sustainability Report 2023Corporate GovernanceAbout UsChairman's StatementProduction and OperationsStrategies and Management
Product ServicesEnvironmental ProtectionCommunity ParticipationLu Thai Textile Co., Ltd
Mental Consultation Room
Mom's Cabin
Series of Activities on the InternationalWomen's Day on 8 March
Female Employee Training
Cultural and Recreational ActivitiesPhysical Examination for Female Employees
Training and developmentThe Company implements horizontal and vertical dual channel development (job promotion and cross-job promotion), with promotion inthe directions of management line and professional lines (the former is achieved through job changes, while the latter is achieved throughinternal professional title appraisal). Targeted training is carried out based on personnel characteristics and personal preferences, achievingmulti-dimensional development space for employees.
Promotion Plan for ProductionFrontline Positions
Promotion Plan for DepartmentPositions
Frontline employees
Skilled workerVersatile employee
Excellent employee
Reserve talentsGroup leaderPlant managementpersonnel
Department employeeExcellent employeeSub-group leaderReserve talentsDepartment managementpersonnel
Promotion and development
Promotion channel
Development of reserve talent pool
The Company has formulated the "Plan for Recruiting One Thousand Reserve Elites During Five Years" for key post personnel from 2022 to2026, and formulated Lu Thai Group Three-year Career Planning for Personnel with Degrees of Bachelor and Above and the ManagementMeasures for Second-level Talent Pool for recruited key post personnel; the Company has achieved the "Determined-post Recruitment,and Oriented Cultivation" of key post personnel. In 2023, totally 402 key post personnel were recruited, and totally 148 second-leveltalents were reserved for all departments
Appraisal and Appointment of Professional Titles
Training for Section Chiefs and Group Leaders
Career Planning for Employees
OnboardingpersonnelCultivationengineering
Grass-rootsmanagerialpersonnelIncubationengineering
Middle-levelmanagerialpersonnelRe-buildingengineering
Senior managerialpersonnelResearch and studyengineering
Basic skills training
Considering bothindividual and teamIndividual's success andteam's success
Maximising theCompany's bene?tsGiving strategic support
Performance-orientedCross-departmentcoordination
This year's new employeeSelf-management
Professional backboneManaging others
Department manager
Managing thedepartment
System managementManaging operations
Set-sail Plan
Flight Plan
Elite Plan
ExcellencePlan
0 to 1 year
1 to 2 years
3 to 5 years
Over 5 years
Employee's Rights and Bene?ts
Sustainability Report 2023Corporate GovernanceAbout UsChairman's StatementProduction and OperationsStrategies and Management
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Talent trainingThe Company has developed a sophisticated vocational training mechanism and designed a variety of vocational training courses interms of expertise and management. A total of 22,850 employees took part in the vocational training in 2023 with a coverage rate of 100%.
Lu Thai Textile actively carries out various skill competitions, and encourages its employees to promote their professional and technicallevels through competitions, and to de?ne their vocational objectives and orientations; the Company also encourages its employees totake vocational quali?cation examinations, to transfer what their have learned into actual output. Lu Thai also constantly facilitates thedevelopment of its employees toward high-grade, precision, advanced, and professional direction, and drives the Company to stridetoward a learning-oriented, skill-oriented, and innovation-oriented world-class enterprise.【Case】The Company carried out the thirty-third session of activity oftechnical demonstration and competitionFrom April to June 2023, the Company held the thirty-third session of activity of technical demonstration and competition. A total of51 units and 8,970 personnel covering 678 types of work in total took part in the competition. Through the processes of publicity andmobilisation, training and learning, post drills, and preliminary and ?nal competitions, ?nally there were 30 champions of single skillsof departments, 3,520 winners of technical demonstrations and competitions, 661 "excellent versatile workers", and 88 "excellentteams", and they have all obtained honour certificates, bonus, and presents. Technical demonstrations and competitions havearoused employees' enthusiasm to learn technologies, dig into professions, practise skills, and work as artisans through training andlearning, post drills, and skill competition, hence achieving the objectives of promoting production, safety, management, bene?ts,and development through competitions.
Onboarding training
Training and DillingTechnical Demonstrations and
Competition
Award Ceremony
Training participants (person)Average training hour (hour)Training coverage rate (%)
22,632
100%
23,028
100%
22,850
100%
Indicator (Unit)202120222023
Promoting skill development
【Case】The Company carries out the activity ofevaluating the excellent
The Company launched the activity of evaluating the excellent, in order to further promote the excellent corporate culture of theCompany, commend outstanding collectives and employees who performed outstandingly in the past year, and motivate everyoneto innovate their performance, achieve new breakthroughs, and make new contributions in the next year. A total of more than 11,500people participated in the evaluation. Through grading evaluation, 2,822 "advanced producers (workers)", 113 "company models",10 "model workers" and 43 "advanced collectives" were ?nally selected, and more than RMB3 million of bonuses were awarded.
Bene?ts and careAttaching importance to employees' board and lodging conditionsLu Thai has over 20,000 employees, with approximately 22% of them dwelling and living in the Company. The Company attaches greatimportance to the quality and services of employees' board and lodging, and regularly carries out satisfaction surveys of employees'board and lodging each year, to constantly improve logistics management and services to strive to provide employees with nutritiousdiets and convenient living conditions.
? Dishes are standardised in proportioning and making to cure standards and ensure quality of dishes.? The Company regularly conducts satisfaction surveys in the workshop, and collects feedback and suggestions from employees on
dining, to continuously optimise in class meals.? In 2023, the meals amid shift were upgraded by including one fried product per meal to enrich the diets of frontline employees.? The Company compiles a menu according to seasonal changes to ensure a cool taste in summer and hot soup and dishes in
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.? The Company pays attention to the innovation of dishes and continuously increases the varieties to improve employee appetite.? In 2023, the focus was on nutritional meal preparation, with the goal of "balanced nutrition and balanced diet" while advocating
the health concept of "reducing the consumption of salt, oil, and sugar while keeping mouth, weight and bones healthy".? The Company makes itself a provincial-level health enterprise to ensure food safety and provide healthy diets.? To demonstrate the Company's humanistic care, a birthday cake is made and provided for employees free of charge.? In 2023, employees' satisfaction on board and lodging reached 80.55%.
LuThai's Diet:
Food DiversityO?ering Birthday Cakes
Employee's Rights and Bene?ts
Sustainability Report 2023Corporate GovernanceAbout UsChairman's StatementProduction and OperationsStrategies and Management
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? Air conditioners and free Wi-Fi are available in all dormitories in the Company? Each ?oor 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? 24-hour unmanned supermarkets are set up in the apartment areas to provide employees with conditions of convenientand fast shopping? The apartments provide the services of cleaning working clothes and articles of bedding free of charge, and set uplocations for replacing articles of bedding to achieve that such articles can be replaced whenever they are dirty? Free drying and storage of bedding are also provided for employees during seasonal changes? Each park area is equipped with bathing facilities, so that employees can have baths conveniently? 84 disinfectant is sprayed on dormitories and bathrooms every day to ensure a healthy living environment
LuThai's Accommodation:
Employee Apartments
Golden Autumn Scholarship
Supermarket
For many years, Lu Thai Group has actively responded to the call of the Party and the state, and strongly supported the development ofeducation. The "Golden Autumn Scholarship " activity is a "family project" that advocates traditional virtues and brings dedication andlove together. It is a "love project" that cares for employees, and also a "hope project" that is related to the development of the enterpriseand the emotional attachment of employees. This year, 212 children of employees in the group company were admitted to universitiesboth inside and outside the province, and a scholarship of RMB846,000 was awarded.
Employee assistance and funding
Awarding Golden Autumn Scholarship
Relief of employees in di?culties
Implementing the people-foremost policy and caring for employees have always been an important part of the Company's corporateculture. The grass-roots branches of the Company visit and comfort employees every year, go deep into the front line of production, andunderstand the living condition of employees through multiple channels. They also take the responsibility of "the ?rst insider" actively, ?ndout the state of mind of employees and take the initiative in solving their problems. The Company has established a bailout foundation, anddistributes assistance funds to employees with family di?culties every year, hence helping employees to go through their di?cult pass. In2023, the Company's Trade Union relieved 75 employees in di?culty, and distributed relief fund of RMB144,000.
Visiting Di?cult Employees during New YearDistributed Relief FundSummer-vacation after-school program
To address the concerns of summer-vacation care for the employee children, in 2023, the Company established a summer-vacation after-school program. From 10 July to 24 August, two sessions of the program were carried out, and over 200 children of employees participatedin the program. The entire after-school program was divided into four themed weeks: "Clever Mind and Hands, Traditional ChineseCulture, Labor Spirit, and Safety Protection". The curriculum was diverse, combining movement and stillness with learning and practice,allowing children to have more opportunities to interact with society, broaden their horizons, and experience the joy of labour creation.This also allowed all children to spend a safe, happy, united, and friendly summer vacation in the Company.
Daily and Report Performances of Summer-vacation After-school Program
Employee's Rights and Bene?ts
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Enriching cultural and recreational life of employeesThe Company regularly organises various cultural, sporting, and recreational activities, to enrich employees' spare-time life, boostemployees' mental outlook, and lead employees to achieving the balance between work and life, hence promoting employees' sense ofbelonging to the enterprise, and enhancing the Company's cohesion.【Case】The 10th Employee Sports GamesIn May 2023, the Company organised the 10th Employee Sports Games, which attracted more than 6,000 participants. Thecompetition lasted for two days and involved 30 competitions. In the end, the representative teams of Lufeng 1st fabric weavingplant, Lufeng 2nd fabric weaving plant, and knitted-fabric production line won the ?rst, second, and third places in the total teamscore, respectively. The representative teams of Luqun Textile, clothing production line, and the Security Department won theExcellent Organisation Award, and the representative team of Zibo School of Technology's Youth Class won the Spiritual CivilisationAward. A number of athletes participated in competitions in a civilised manner by competing hard and aggressively, showcasing thecharm of employees in the new era of Lu Thai; the referees enforced the laws with civility, seriousness, objectivity, and impartiality,embodying their good civilised qualities and professional ethics, fully demonstrating the enterprising spirit of the Lu Thaiers, andhighlighting the cohesion and centripetal force of the enterprise.
The Scene of the Sports Games
【Case】The Twenty-?fth Session of Employee Basketball League
【Case】The Twenty-third Session of Employee Soccer League
In September 2023, the Company organised the twenty-fifth session of Employee Basketball League, and a total of more than 150referees, athletes, and employees' representatives took part in the league, which was divided into group knockout matches, round-robinmatches and ?nal matches, with 35 matches in three days. Through competitions, everyone enhanced their physical ?tness, honed theirspirit of unity, hard work, and progress, enriched their leisure life, and enhanced their sense of identi?cation with corporate culture.
In September 2023, the Company organised the twenty-thirdsession of Employee Soccer League, and a total of more than 150referees, athletes, and employees' representatives took part inthe league. Ten teams participated in the league, which lasted forsix days and consisted of 24 rounds. The matches were dividedinto group knockout rounds, semi-?nals, and ?nals. On the sportsfield, everyone demonstrated a spirit of tenacious struggle,courage to compete, and unity and cooperation in sports, activelycontributing to the Company's new 30-year voyage.
The Scene of the Basketball Match
The Scene of the Football Match
Employee's Rights and Bene?ts
Sustainability Report 2023Corporate GovernanceAbout UsChairman's StatementProduction and OperationsStrategies and Management
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【Case】Swimming Competition
【Case】Electronic Band Tour of LuThai Music Week
On 4 August 2023, Lu Thai Group held a swimming competition themed "Swimming for the Best and Braving the Wind and the Waves"in 2023. The competition included events such as the men's 50 m, men's 100 m, men's 4x50 relay, women's 50 m, parent-child 50 m,"landlubber" swimming, and parent-child interaction. With various swimming styles, everyone competed in the swimming pool and engagedin intense water competitions, fully showcasing the Lu Thaier's spirit of struggling ahead and pursuing progress.
From 7 to 12 August 2023, the "Passionate August with Rhythm" Electronic Band Tour of Lu Thai Music Week 2023 was held in variousparks of the Company, attracting more than 1,000 employees from relevant departments in each park. The Electronic Band Tour haddiverse song styles and performance forms, creating a lively atmosphere and presenting a wonderful and unparalleled audio-visualfeast for everyone.
The Scene of the Swimming Competition
The Scene of the Electronic Band
【Case】Series of Cultural and Sports Activities to Celebrate the New Year
【Case】Parent-child Activities and Dual-employee Team Building Activities
In December 2023, Lu Thai Group held a series of cultural and sports activities themed "Let's Fight and Pursue Dreams Together" to celebratethe 2024 New Year. The indoor event lasted for three days and included table tennis, billiards, badminton, and chess and card games. Morethan 450 people participated in the indoor event competition. By participating in various projects, everyone improved their physical ?tness,and relaxed themselves physically and mentally, injecting new vitality into the Company's development.
In 2023, the Company held a parent-child activity with the theme of "Embracing the Future Hand in Hand Happily " and a dual-employee team building activity with the theme of "Grateful for You at Dongzhi Festival".
The Scene of Indoor Events
Dual-employee Team Building Activity
Parent-child Activity
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Product Services/Providing Ace ServicesIn the face of the complex and ever-changing market situation,in 2023, the Company leveraged the driving force of marketing,and called on various departments to collaborate efficientlywith each other, actively go global, deeply understandmarket changes, and get an insight into customer needs.With "technology, fashion, and green" as the new industrypositioning, and the goal of "becoming a global apparelsolution provider with cutting-edge fabrics as the core", theCompany continued to do a good job in products and services.
Sustainable Development Goals (SDGs) of the United Nations
Employee's Rights and Bene?tsSustainability Report 2023Corporate GovernanceAbout UsChairman's StatementProduction and OperationsStrategies and Management
Product ServicesEnvironmental ProtectionCommunity ParticipationLu Thai Textile Co., Ltd
The development of the Company for 36 years has always relied on good product development and realisation capabilities, and in the future,it still needs to rely on products to win the market. Currently, customers are increasingly interested in the green and environmentally-friendlyproducts with differentiated attributes and high performance. We need to adapt to the development trend of the textile industry, focus oncustomer needs, and do a good job in technological innovation and upgrades. We will continuously carry out product research and developmentand product upgrades to provide customers with products that meet their needs and are cost-e?ective.
Compared with conventional dyeing methods, coloured polyester fibresand polyamide 6 ?bres that are produced with the dope dyeing technologyno longer require post dyeing, reducing the production cost of fibre-coloured ?laments, water and energy consumption, and carbon emissions.According to incomplete statistics, dope dyed fabrics have reduced carbonemissions by up to 26% and water consumption by 72% compared to dyedfabrics, with obvious advantages in energy conservation and emissionreduction, which meets the requirements of low-carbon circular economydevelopment in the textile industry.
The concepts of sustainable development such as green, low-carbon,and ecological and environmentally friendly are increasingly recognisedby consumers, and low-carbon and sustainable lifestyles are graduallybecoming a trend pursued and advocated by society. By using naturaland recycled materials, as well as new ecological and environmentally-friendly dyeing aids, low-carbon processing technology has beendeveloped. A series of products have been developed, includingecological moisture crosslinking, ecological softness, ecologicalabsorption and discharge, and probiotic protection, to reduceproduction waste emissions and comply with the concept of sustainabledevelopment, bringing more healthy textiles to consumers.
Raw material innovation: Sustainable exploration, development and cooperation in terms of rawmaterials; the renewable, degradable, recyclable, and sustainable product series that are featuredby the natural ?bre and regenerated cellulose ?bre series and the bio-based series.
Technological innovation: In-depth research into crafts and technologies, and the full-processprocessing for green production that is water-saving, energy-saving, and low-emission; activee?orts to keep improving green and environmentally-friendly technology to e?ectively support andcontinuously upgrade products.Product innovation: Continuous exploration of innovative full-life-cycle application solutions fortextile products, and continuous introduction of new and environmentally-friendly product seriesthat are skin-friendly and comfortable, elastic, easy-to-manage, and good for health to the marketby continuous updating multicomponent products, such as natural fibre, regenerated cellulose?bre, ultra soft texture ?bre.
Product innovation
【Case】No-dye FabricsEmbracing Nature Healthily andBlithely with Green, Low-carbonand Ecological Textiles
The Lyocell fibre transformation is an industrial problem currently facedby various fabrics brands. Exploring new application methods and specialtactile sensations of recycled cellulose products has become one of ourdevelopment directions. By using existing industrial laundry appliances,over?ow dyeing machines, and other equipment, special alkaline washingtreatment is carried out using alkali, new additives, etc., to give the fabric adelicate and dense velvet feel, a soft hand feeling, and a unique style.
Cotton (recycled cellulose) fibres, after modification, can change theelectrical repulsion between cellulose fibres and anionic groups ofdyestu?, signi?cantly improving the adsorption performance of cotton onnegatively charged dyes, achieving the goal of not using sodium hydroxideto promote dyeing. By combining with ordinary raw materials for surfacestructure design, countless colours can be magically realised, achieving fastreaction and delivery time. Natural cotton or recycled fibre materials areused, realising salt-free and alkali-free dyeing which is energy saving andenvironmentally friendly.
【Case】Biomass Functional Fabrics
【Case】SUECELL, an InnovativeNew Tactile Product
【Case】Over DYE, N+ Possibility of Fabric
A series of 100% biomass fibre woven fabrics and biomass fibreinterwoven fabrics developed by the Company, such as SOLOTEX,SORONA, T400, PA56 and PLA, has functional characteristics such asecologically and environmentally friendly, comfort and elasticity, heatresistance, moisture absorption and quick drying, antibacterial andodour resistance, UV protection, skin friendly comfort. They can beused as casual shirt fabrics, energetic denim fabrics, fashionable sportsfabrics, jackets, windbreakers, pants and other fabrics. Not only can theymeet the needs of consumers for high-performance and multi-functionalproducts, but they also meet the requirements of green, low-carbon,and sustainable development. At the same time, they can alleviate thedependence of the textile industry on petroleum resources, and reducethe dependence of China's textile industry on foreign countries. Theyplay an important role in promoting the sustainable development ofChina's textile industry, enhancing industrial competitiveness, andassist in achieving carbon emission peak and carbon neutrality.
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The Company adheres to the principle of "quality is the most importantelement of enterprise survival and development", and continuously strengthensquality control with the purpose of "meeting the needs of customers andthe market". The Company's Quality Control Department formulates qualityindicators, converts customer feedback information into quality requirements,and accurately controls process quality and result compliance; it refines thequality management assessment mechanism and motivates the improvementof production quality in each workshop.
Qualityassurance
Raw materialpreparationand controlroom
Central laboratory
ProcesscontrolroomProductpre-controlgroup
Quality control
In 2023, 99.96% of Yarn A and other yarn products that Lu Thai Textile produced passed the pre-storage inspection, and the ratio was 99.37%for yarn-dyed products, 96.8% for knitted products, and 97.94% for piece-dyed products. Meanwhile, the delivery ratio of the functional fabricproducts was 92.36%, and 100% of the ready-to-wear clothing was able to be delivered.
Production LinesPass rate
YarnYarn-dyed fabrics
Knitted fabricsPiece-dyed fabricsFunctional fabricsReady-to-wear clothing
99.96%
99.37%
96.8%
97.94%
92.36%
100%
The Company holds production meetings every day to address any problemsencountered during productionThe Company strengthens the process compliance inspection on each process,and supervises and manages it through sampling and tracking methodsThe Company actively communicates with customers and absorbs their valuablefeedback on product qualityThe Company organises professional training for quality management personnelto continuously improve the quality awareness and ability of all sta?The Company has a CNAS laboratory certi?ed by the state, achieving independenttesting of some indicatorsThe Company sends 100% of textiles to professional organisations (e.g. ITS, SGS,BV, Keken) for a safety inspection to make certain that these textiles are in linewith market laws and regulations, standards and customers' RSL requirements.
Employee's Rights and Bene?tsSustainability Report 2023Corporate GovernanceAbout UsChairman's StatementProduction and OperationsStrategies and Management
Product ServicesEnvironmental ProtectionCommunity ParticipationLu Thai Textile Co., Ltd
Customer services and satisfactionThe Company adheres to a customer-centric approach and comprehensively enhances its customer service capabilities. TheCompany convenes communication meetings at any time with customers at their will to learn their demands for productsand their suggestions on the products provided for them. The Company also regularly visits customers to maintain a goodrelationship. Moreover, the Company regularly hosts exhibitions and product promotion showcases as an e?ective means tointroduce more high-quality products and services of the Company to customers.
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 complaintsin time, so as to protect the legal rights and interests of customers.The Company convenes video conferences with customers to discuss technical issuesand problems of quality.The Company regularly visits customers to maintain a good relationship.The Company invites customers to visit or participate in new product releases orimportant events to enhance customer relationships.
Constant care
At the beginning of every December, the Company develops a customer satisfactionsurvey plan for this year and designs a survey questionnaire. The questionnaireincludes the methods, channels, content, time period, and the content regarding pre-sales consultation and information acquisition, research and development and design,product quality, delivery process, and after-sales services and corporate culture. After thequestionnaire design is completed, the Strategy and Marketing Department organisesthe Sales Department and relevant departments to review the content and feasibilityof the survey questionnaire before 15 January of the following year. From January to18 February of the following year, the Sales Department distributes questionnairesand conducts surveys to customers through email, fax, telephone (which can be usedin special circumstances), and other forms. The distribution of questionnaires mustcover both strategic and value customers, with a distribution ratio of no less than 30%for general and potential customers. The Sales Department should organise relevantdepartments to summarise, organise, and analyse the relevant information within tendays of receiving the questionnaire, and form a Customer Satisfaction Survey Report.Based on the results of such a survey, the Company analyses the its existing advantagesand disadvantages, and formulates targeted improvement measures to meet customers'expectations as much as possible.
Customer satisfaction survey andimprovements
Employee's Rights and Bene?tsSustainability Report 2023Corporate GovernanceAbout UsChairman's StatementProduction and OperationsStrategies and Management
Product ServicesEnvironmental ProtectionCommunity ParticipationLu Thai Textile Co., Ltd
Environmental Protection/Deepen Green and Low-carbon DevelopmentWith the development of the economy and the advancement oftechnology, global issues such as resource scarcity and climatechange have become increasingly urgent. Promoting greenand low-carbon development has become a consensus andaction for countries around the world to address resource andenvironmental issues and promote sustainable development.As a green pioneer and initiator of the Green ManufacturingAlliance in the global textile industry, Lu Thai has alwaysadhered to the sustainable development path of "green, low-carbon, and environmentally friendly", followed the economicgrowth 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 theupgrades of equipment in terms of energy conservation andenvironmentally friendly, and achieved the research andapplication of green processes, assisting the world in achievinga win-win supply chain ecosystem and sustainable humandevelopment.
Sustainable Development Goals (SDGs) of the United Nations
Employee's Rights and Bene?tsSustainability Report 2023Corporate GovernanceAbout UsChairman's StatementProduction and OperationsStrategies and Management
Product ServicesEnvironmental ProtectionCommunity ParticipationLu Thai Textile Co., Ltd
Addressing climate change
Climate change is not only an environmental issue, but also a development issue. As a global textile enterprise, Lu Thai actively regardsaddressing climate change as an important action for sustainable development, vigorously promoting energy conservation and carbonreduction in production and operation, and contributing to global climate governance.
As of 2023,
Directories of promoted energy-saving and low-carbon technologies released
by relevant national ministries and commissions
Specifically, the promoted rate of thecomprehensive energy-saving technology formaglev centrifugal blowers exceeded 80%.
As of 2023, the Company's installed solarphotovoltaic power generation facilities havesupplied a total of
50.36 MW
grid-connectedelectricity.Accounting for13%of the annual electricityconsumption within the total installation scope.Reducing carbon dioxide emissions byapproximately
60,000 tons
.
Photovoltaic Power Generation
The comprehensive energy-saving technology for maglev centrifugal blowersThe long-distance heat transmission and supply technology based on a large
temperature di?erence using low-grade waste heatEnergy-e?cient and low-nitrogen combustion technologyIn-depth wastewater treatment technology based on the dual-membrane method
High-e?ciency photovoltaic inverter technologySludge coupling power generation technologyThe energy-saving and consumption-reducing and waste energy recycling
technology for industrial enterprisesLED straight tube re?ective lightsThe heat supply, air conditioning, water heating, heat recovery and heat storage
technology with low temperature heat pumps
Name of the technologyPromotion directoryDirectory of Promoted GreenTechnologies(2020)Directory of Key Low-carbonTechnologies Promoted by the
State (2014)National Industrial Energy-saving
Technology Recommendation
Directory (2021)List of Applications of Energy-saving, Emission-reducing andLow-carbon TechnologicalAchievements for Promotion
Order in thedirectory
Sustainability Report 2023Corporate GovernanceAbout UsChairman's StatementProduction and OperationsStrategies and Management
Energy management
Automatic data collection and aggregation for major energy-consuming areasand devices are conducted to achieve a management pattern that is flat anddynamic. By integrating the ERP system and the financial cost accounting systemof the Company, a database for energy consumption is established, where energyconsumption is seamlessly connected to the product energy consumption costsystem and the annual energy cost budget system. With the seamless connection,timely analysis and summary are conducted to effectively control the Company'senergy consumption.
According to the heat exchange optimisation theory based on pinchanalysis, the Company makes use of the proximal heat and establishesa gradient heat exchange network. The recycling measures for wasteheat generated by bleaching and dyeing, in the wastewater generatedby ?nishing, and of the boiler steam were consecutively implemented,as the waste heat recycling rate has increased to 80% with theapplication of multiple heat pump technologies, representing a totalof 12,536 tons of steam saved every year.
In order to e?ectively utilise the waste alkali generated during the mercerisation process, the Company connects the alkali recovery device ofthe dyeing and ?nishing plant with the sewage station to achieve the recycling and utilisation of alkali. This greatly reduces the use of fresh rawalkali in the sewage station, reduces the operating costs of alkali recovery, and reduces the over?ow and waste fees of light alkali, saving anannual cost of RMB730,000.Alkali recovery interconnection adopts Siemens SMART series CPU as the central processor, the Beijing Kunlun Tongtai touch screen as thehuman-machine interface, and Ethernet for communication in the automatic control system, with high processing speed and stability. The liquidlevel of each area's dilute alkali tank is measured using a magnetic ?oat level gauge, which collects data through analogue 4 to 20 mA and digitalsignals. Each magnetic ?oat level gauge is designed with analogue quantity and external switch quantity for control and alarm, providing dualprotection. To ensure the normal operation of pipeline pressure, safety linkage control is achieved through the use of pressure transmitters, on/o? valves, and pump on/o?, such as pump valve opening and automatic pump shutdown when the pipeline exceeds the set pressure.
Through the separation of oil and ammonia, oil and water in theprocessing of liquid ammonia, the recycling of liquid ammonia isrealized, and the reuse rate is more than 99%.
The monitoring of major energy-consuming devices and the onlinemonitoring and application of the data of energy consumption
Waste heat recycling
Alkali recovery interconnection renovation
Liquid ammonia recycling
Employee's Rights and Bene?tsProduct ServicesEnvironmental ProtectionCommunity ParticipationLu Thai Textile Co., Ltd
Employee's Rights and Bene?tsSustainability Report 2023Corporate GovernanceAbout UsChairman's StatementProduction and OperationsStrategies and Management
Product ServicesEnvironmental ProtectionCommunity ParticipationLu Thai Textile Co., Ltd
Water resources management
Lu Thai Textile actively conducts water resources management and makes more e?orts in the recycling of water resources. The Company hasestablished a long-term mechanism for water conservation, formulated plans for unit water consumption and annual conservation, assignedand implemented water conservation goals to each section and working team and clari?ed responsibilities for all levels.
In 2023, with the Company's own wastewater treatment plant, the Group's reclaimed water manufacturing equipment had a design capacity of20,000 tons/day, and the use rate of reclaimed water in the Group's major water-consuming plants was as high as more than 50%. This greatlyreduced the consumption of tap water, e?ectively alleviated the shortage of regional water supply, and played a signi?cant demonstration rolein the industry.
The Company has established plant wastewater treatmentstations and municipal wastewater treatment plants. The plantwastewater treatment stations adopt the biochemical treatmentmethods, and the quality of the discharged water is below theconcentration limit for indirectly discharged water specifiedin the Discharge Standards of Water Pollutants for Dyeing andFinishing of Textile Industry (GB4287-2012) and compliantwith the requirements in the Announcement on Adjusting theImplementation Requirements for Some Indicators of GB4287-2012. The municipal wastewater treatment plant adopts atechnique that integrates "hydrolysis and Orbal oxidationditches" and has a capacity of treating approximately 120,000cubic meters of wastewater every day into water with a qualitythat is better than the A standard of Level 1 specified in theDischarge Standard of Pollutants for Municipal Wastewatertreatment Plant (GB18918-2002).
By analysing the consumption of production and domestic water in theCompany, Lu Thai develops a water-saving plan to control water use andwaste.
Water conservation
Sewage treatment
Water footprint tracking
Sustainability Report 2023Corporate GovernanceAbout UsChairman's StatementProduction and OperationsStrategies and Management
Atmospheric pollutant management
Waste management
The Company actively conducts atmospheric pollutant management to lessen the environmental burden brought by its production and
operation to the society as much as possible. During this Reporting Period, in the factory-bound fugitive exhaust gas, the concentration of
hydrogen sulphide was 0.005 mg/m
, that of ammonia was 0.08 mg/m
, that of particulate matter was 0.28 mg/m
, that of non-methane
hydrocarbon was 1.3 mg/m
, and that of odour was 13 (dimensionless). This is better than the discharge standard, which speci?es that the
concentration limit for hydrogen sulphide is 0.06 mg/m
, that for ammonia is 1.5 mg/m
, that for particulate matter is 1.0 mg/m
, that for non-
methane hydrocarbon is 2.0 mg/m
and that for odour is 16 (dimensionless).
The Company temporarily stores and disposes hazardous waste that it generates in strict compliance with the Directory of National Hazardous
Wastes and the Standard for Pollution Control on Hazardous Waste Storage. It manages hazardous waste in di?erent categories separately by
establishing hazardous waste storehouses and corresponding supporting facilities, while it hires quali?ed hazardous waste disposal agencies
to transfer hazardous waste and prohibits the appropriation of hazardous waste. The main hazardous waste generated in the production and
operation of the Company includes waste oil, waste oil barrels, waste paint buckets, waste detergent barrels, lining bags contaminated by
chemical dyes, waste lead-acid batteries, laboratory waste liquid, etc.; the main non-hazardous wastes brought by the production and operation
is the sludge.
Disposing of
tons of hazardous wasteDisposing of
12,462
tonsof non-hazardous waste
Employee's Rights and Bene?tsProduct ServicesEnvironmental ProtectionCommunity ParticipationLu Thai Textile Co., Ltd
Employee's Rights and Bene?tsSustainability Report 2023Corporate GovernanceAbout UsChairman's StatementProduction and OperationsStrategies and Management
Product ServicesEnvironmental ProtectionCommunity ParticipationLu Thai Textile Co., Ltd
Community Participation/Striving to Be an ExcellentCorporate CitizenIn the face of a complex and severe external environment,Lu Thai assesses the situation, makes unified decisions,and overcomes difficulties. The Company adheres to themission of "creating wealth and contributing to society",assists the national education and community public welfareundertakings, and provides strong impetus for local economicdevelopment.In 2023, Lu Thai actively participated in the centenariancondolence campaign, assistance for the disable in HandouHome, donations for the Provincial Elderly Cadre ActivityCentre, and student assistance for Qingdao Universityand Inner Mongolia University of Technology, with a totalinvestment of RMB2.9 million.
Sustainable Development Goals (SDGs) of the United Nations
Employee's Rights and Bene?tsSustainability Report 2023Corporate GovernanceAbout UsChairman's StatementProduction and OperationsStrategies and Management
Product ServicesEnvironmental ProtectionCommunity ParticipationLu Thai Textile Co., Ltd
Support to educationOver the years, Lu Thai has established cooperative relationships with multiple universities to jointly cultivate talents. The Company hasestablished education funds to support batches of outstanding impoverished students to complete their studies; it has carried out practicalprojects to create employment opportunities for graduates year after year.
LuThai Group signs a contract with Qingdao University's "Teaching and Learning Assistance"Million Award FundCaseOn 13 May 2023, the signing ceremony between Lu Thai Group and Qingdao University on Million Award Fund for Teaching andLearning, as well as the unveiling ceremony of Shandong Modern Textile Industry College, was held at Qingdao University. TheCompany expected that this in-depth cooperation between the university and the enterprise can e?ectively motivate the universityteachers to study teaching diligently, do a good job in scienti?c research, and cultivate talents for the country and the textile industry.At the same time, the Company also expected that young students from Qingdao University can choose to devote themselves to thepursuing the dream of building a national textile power after graduation based on their solid learning and practice in the textile majorin the university.
Donation Ceremony
Sustainability Report 2023
Case
Case
"Lu Thai Textile Scholarship" Granting Ceremony at Inner Mongolia University of Technology
Research in Lu Thai by Peking University's School of International Studies
In October 2023, the 2023 "Lu Thai Textile Scholarship" Granting Ceremony of Inner Mongolia University of Technology was held at InnerMongolia University of Technology. The Company granted scholarships to the awarded students, inspiring outstanding students to studyhard, work hard, and strive for progress, consolidating university-enterprise cooperation, and jointly cultivating talents.
In June 2023, a group of 13 people from the School ofInternational Studies at Peking University visited theCompany to conduct “Spark Plan” research. TheCompany's chairman, directors, and others accompanied thevisit and had a discussion.On the meeting, the Deputy Secretary of the Party Committeeof the School of International Studies at Peking University andthe Chairman of the Company signed an agreement to jointlybuild an ideological and political practice education base. LuThai and Peking University's School of International Studieshave jointly built an education base, which will promote themutual promotion and integration of ideological and politicalpractice courses with corporate culture, and provide high-quality educational resources and practical opportunities foroutstanding students.
Granting Ceremony
Visit and Meeting
Employee's Rights and Bene?tsSustainability Report 2023Corporate GovernanceAbout UsChairman's StatementProduction and OperationsStrategies and Management
Product ServicesEnvironmental ProtectionCommunity ParticipationLu Thai Textile Co., Ltd
Donating Money to Handou Home
Protecting Ancient Villages ? Claiming Ancient Famous Trees
Chairman Liu Zibing visits the senile elderly at Double Ninth Festival
Chairman Liu Zibing visited the senile elderly
Welfare and charity actionsThe Company has always adhered to its original mission, actively participated in public welfare and charity activities, and continuously donatedto public welfare and charity projects, to share the achievements of enterprise development with society through practical actions.
In the activity of protecting ancient villages and claiming famous trees in Zibo City, Lu Thai Company earnestly practiced the concept of "lucidwaters and lush mountains are invaluable assets", and actively bode to adopt a millennium-aged tassel tree, contributing to the protection ofprecious natural resources and cultural heritage.
In April 2023, the Company donated RMB100,000 to the Han Dou Home Help Centre for theitem purchase and daily maintenance of Han Dou Home. The Han Dou Home Help Centreexpressed its gratitude and awarded the Company a banner.
The Double Ninth Festival is set to show respect to the elderly. On the eve of the Double Ninth Festival every year, Liu Zibin, Chairman andPresident of the Company, visits and comforts the elderly in the entire region, providing them with condolence money, and warmly inquiringabout their physical condition, clothing, food, housing, and transportation. He carefully listens to the voices of the elderly and reminds theirchildren and relatives to take good care of them, so that they can maintain an optimistic and comfortable attitude.
Case
Case
Case
Donated Banner
Sustainability Report 2023
Key Performance Indicators
Economic performance
Environmental performance
Air pollutant emissions
Waste discharge
68.0147.5152.38
16.90 14.2714.41
6.53.693.27
Indicator (Unit)
52.38
2.49
14.41
1.4
3.27
2.66
69.38
3.18
16.49
1.66
5.07
9.12
202120222023
Indicator (Unit)202120222023
Data related to wastewater and sewage
Indicator (Unit)
Indicator (Unit)
2021
2021
2022
2022
2023
2023
Hazardous waste generation (ton)
Hazardous waste generation (ton)Non-hazardous waste generation (sludge) (ton)
Non-hazardous waste generation (sludge) (ton)
15,083
14,320
12,462
Operating revenue (RMB100,000,000)Payments to contractors and service providers(RMB100,000,000)Total employee remuneration (includingcompensation and bene?ts) (RMB100,000,000)
COD (Chemical Oxygen Demand) in dischargedwastewater (ton)Ammonia nitrogen content in dischargedwastewater (ton)Industrial wastewater discharge (10,000 cubicmeters)
Payments to capital providers (RMB100,000,000)Payments to the government (RMB100,000,000)Retained economic value (RMB100,000,000)
51.96
4.72
15.49
1.85
3.72
3.10
Employee's Rights and Bene?tsSustainability Report 2023Corporate GovernanceAbout UsChairman's StatementProduction and OperationsStrategies and Management
Product ServicesEnvironmental ProtectionCommunity ParticipationLu Thai Textile Co., Ltd
Energy consumption density
Human resourcesProtection of employee rights and interests
Employee diversity
Greenhouse gas emissionsIndicator (Unit)202120222023
Indicator (Unit)202120222023
115.5
19.1
79.7
13.5
51.09
13.08
Indicator (Unit)
Indicator (Unit)
2021
2021
2022
2022
2023
2023Employee diversity
12,70013,561424,671150,501575,172588,733
12,77113,579375,819145,314521,133534,712
10,520
11,298
331,445
121,992
453,437
464,735
22,6329,593
13,039
23,0289,736
13,292
22,850
9,317
13,533
Mobile sources emissions (tons of carbon dioxideequivalent)
Greenhouse gas emission density (tons of carbondioxide equivalent per million revenue)Total energy emission density (tons of standard coalper million revenue)
Number of female employees with parental leaveduring the year (person)Number of male employees with parental leaveduring the year (person)
Stationary source emissions (tons of carbon dioxideequivalent)Consumption of purchased power (tons of carbondioxide equivalent)Consumption of purchased heat (tons of carbondioxide equivalent)
Category 1 emissions (tons of carbon dioxideequivalent)
Category II emissions (tons of carbon dioxideequivalent)Total (tons of carbon dioxide equivalent)
Employment contract signing rate (%)
Total number of incumbent employees (person)Total number of male employees (person)Proportion of male employees (%)Total number of female employees (person)Proportion of female Employees (%)
Social insurance coverage (%)
Employee training
Employee TurnoverIndicator (Unit)202120222023
Indicator (Unit)202120222023
Indicator (Unit)202120222023
10,520
12,112
1,3364,57616,720
9,866
13,162
1,4004,52317,105
9,671
13,179
1,3193,72617,805
6,08119%
22,632
100%
7,31321%
23,028
100%
3,33813%
22,850
100%
Total number of employees aged under 30 (person)Proportion of employees aged under 31 (%)Total number of employees aged above 30 (person)Proportion of employees aged above 31 (%)Bachelor or above (person)High school or below (person)
Foreign employees (%)
Total number of new employees (person)Employee turnover rate
Training participants (person)Average training hour (hour)Training coverage rate (%)
Junior college (person)
China (%)
Employee age
Education background of employees
Nationality
Employee's Rights and Bene?tsSustainability Report 2023Corporate GovernanceAbout UsChairman's StatementProduction and OperationsStrategies and Management
Product ServicesEnvironmental ProtectionCommunity ParticipationLu Thai Textile Co., Ltd
GRI Indicator Disclosure IndexGRI referencePage numberIndicator description
GRI 1 FoundationGRI 2 General DisclosuresOrganisational pro?le
2-12-22-32-62-72-92-102-112-142-172-192-222-232-242-262-29Substantive IssuesEconomyGRI 201: Economic Performance3-3201-1201-2GRI 203: Indirect Economic Impacts
6-7 15，40-53 19-2119-21
19-2119-21
19-21 14-15 14-21
73-75 73-7564，67，74
Organisational detailsEntities included in the organisation's sustainable development reportReporting Period, frequency and contact pointActivities, value chain and other business relationshipsEmployeesGovernance structure and compositionNomination and selection of the highest governance bodyChair of the highest governance bodyRole of the highest governance body in sustainable development reportCollective knowledge of the highest governance bodyRemuneration policiesStatement on sustainable development strategyPolicy commitmentsEmbedding policy commitmentsMechanisms for seeking advice and raising concernsApproach to stakeholder engagement
Management of substantive issuesDirect economic value generated and distributedFinancial implications and other risks and opportunities due to climate change
GRI referencePage numberIndicator description
Management of substantive issuesInfrastructure investments and services supportedSigni?cant indirect economic impactsManagement of substantive issuesManagement of substantive issuesCommunication and training about anti-corruption policies andproceduresManagement of substantive issues
Management of substantive issuesManagement of substantive issuesEnergy intensity 66Management of substantive issuesInteractions with water as a shared resourceManagement of water discharge-related impactsWater dischargeManagement of substantive issuesDirect (Scope 1) GHG emissionsEnergy indirect (Scope 2) GHG emissionsGHG emissions intensityReduction of GHG emissionsNitrogen oxides (NOX), sulfur oxides (SOX), and other signi?cantair emissions 59, 65
3-3203-1203-2
GRI 204: Procurement Practices
3-3GRI 205: Anti-corruption3-3205-2GRI 206: Anti-competitive Behavior3-3EnvironmentalGRI 301: Materials3-3GRI 302: Energy3-3302-3GRI 303: Water Resources and Wastewater
3-3303-1303-2303-4
GRI 305: Emissions
3-3305-1305-2305-4305-5305-7
28-67 28-6728-29，54-55，62-63
22-23
18，23，37
65-6662-6373-7462-63
62-63
74 74 73
Employee's Rights and Bene?tsSustainability Report 2023Corporate GovernanceAbout UsChairman's StatementProduction and OperationsStrategies and Management
Product ServicesEnvironmental ProtectionCommunity ParticipationLu Thai Textile Co., Ltd
GRI referencePage numberIndicator description
Management of substantive issuesComposition of waste generatedManagement of substantive issues
Management of substantive issuesNew employee hires and employee turnoverBene?ts provided to full-time employees that are not provided totemporary or part-time employeesParental leaveManagement of substantive issuesOccupational health and safety management systemHazard identi?cation, risk assessment, and incident investigationOccupational health servicesWorker training on occupational health and safetyPromotion of worker healthPrevention and mitigation of occupational health and safety impactsdirectly linked by business relationshipsWorkers covered by an occupational health and safety managementsystemWork-related ill healthManagement of substantive issuesAverage hours of training per year per employeePrograms for upgrading employee skills and transition assistanceprogramsManagement of substantive issuesDiversity of governance bodies and employees
GRI 306: Waste3-3306-3GRI 308: Supplier Environmental Assessment3-3SocialGRI 401: Employment3-3401-1401-2401-3GRI 403: Occupational Health and Safety3-3403-1403-2403-3403-5403-6403-7403-8403-10GRI 404: Training and Education3-3404-1404-2GRI 405: Diversity and Equal Opportunities3-3405-1
62-63 6762-63
38-39
4141，7428-29 30，40
31-33
30-36 30-36
38-3946，5746，57
19-21，41-42，74
19-21，42，74
GRI referencePage numberIndicator description
Management of substantive issuesManagement of substantive issuesManagement of substantive issuesManagement of substantive issuesManagement of substantive issuesManagement of substantive issuesOperations with local community engagement, impactassessments, and development programsManagement of substantive issuesManagement of substantive issuesManagement of substantive issues
GRI 406: Non-discrimination
3-3
GRI 407: Freedom of Association and Collective Bargaining
3-3
GRI 408: Child Labor
3-3
GRI 409: Forced or Compulsory Labor
3-3
GRI 411: Rights of Indigenous Peoples
3-3
GRI 413: Local Communities
3-3413-1
GRI 414: Supplier Social Assessment
3-3
GRI 415: Public Policy
3-3
GRI 416: Customer Health and Safety3-3
41，43
13，4168-69 70-72
11，1535-37，56-59
Employee's Rights and Bene?tsSustainability Report 2023Corporate GovernanceAbout UsChairman's StatementProduction and OperationsStrategies and Management
Product ServicesEnvironmental ProtectionCommunity ParticipationLu Thai Textile Co., Ltd
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Luthai Textile Co.,Ltd
Address: No.81, Songling East Road, Zichuan District, Zibo City, Shandong ProvinceTelephone: 0533-5188888http://www.lttc.com.cn