海澜之家：2024年社会责任报告(英文版)

2930

HLA GROUP CORP., LTD. SOCIALRESPONSIBILITY REPORT

2024

Address: Huashi Town, Jiangyin City, Jiangsu Province

Postcode: 214421Fax: [phone]Tel: [phone]E-mail: [e-mail]: http://www.hla.comhttp://www.hla.com.cn

HLA GROUP CORP., LTD.

海澜之家青春代言人

曾舜晞

CONTENTS

Governance Structure and Operation Mechanism 21-22Shareholder Protection and Investor Relations 23-24Risk Management 25Business Ethics 26

SOLID GOVERNANCEBUILDING THE FOUNDATIONFOR DEVELOPMENT

Responding to Climate Change 29Resource Consumption 30Circular Economy 31-32Environmental Compliance Management 32

GREEN MANUFACTURINGFORMING A LOW-CARBONFUTURE

Product Quality ControlCustomer Rights ProtectionResponsible Supply Chain

NATIONAL QUALITYCREATING A SUSTAINABLECONSUMPTION ECOSYSTEM

Labor RightsTalent DevelopmentHealth and SafetySocial Contribution

PEOPLE-ORIENTEDBUILDING A BETTER SOCIETY

PREFACEAbout this Report 01-02Message from the Chairman 03-04About HLA 05-08The Development of HLA Group 09-10

Sustainable Development Governance 11Stakeholder Communication 12-14Materiality Assessment 15-16Annual Honors and Recognition 17-18

APPENDIXReport Indicators Index 57Reader Feedback 58

2930

HLA GROUP 2024 SOCIAL RESPONSIBILITY REPORT

SUSTAINABLE DEVELOPMENTMANAGEMENT

35-38

39-43Innovation-driven and IntellectualProperty Protection

47-5051-53

55-56

The organization scope of this report is HLA Group Co., Ltd. and its subsidiaries. If there is any inconsis-tency between the speci?c data scope and the scope of this report, it will be noted in the main text.

This report is based on the following international and domestic authoritative ESG standards:

?Global Reporting Initiative (GRI) Sustainability Reporting standards?International Sustainability Standards Board (ISSB) International Financial Reporting Sustainabil-ity Disclosure Standard(General Requirements & Climate-related disclosures)?Chinese Academy of Social Sciences' Sustainability Reporting Guidelines for Chinese Enterprises(CASS-ESG 6.0)?Shanghai Stock Exchange 'Self-regulatory Guidelines for Listed Companies No. 4 - Preparation ofSustainability Reports'?Standardization Administration of the People's Republic of China, General Administration ofQuality Supervision, Inspection and Quarantine of the People's Republic of China, Guidelines forthe Preparation of Social Responsibility Reports (GB/T 36001-2015)

About this Report

Introduction

Scope

Criteria

Disclaimer

Report Access

Name Explanations

Data Source

0102

HLA GROUP 2024 SOCIAL RESPONSIBILITY REPORT

Sustainable Development

Management

Solid GovernanceBuilding the Foundationfor Development

Green ManufacturingForming a Low-carbonFuture

National QualityCreating a SustainableConsumption Ecosystem

People-OrientedAppendixBuilding a Better SocietyPreface

This report is the eighth corporate social responsibility report released by HLA Group. The previous reportwas released in 2024, and the release cycle of this report is one year, consistent with previous reports.This report showcases HLA Group's management practices and performance in key areas such asenvironment, society and governance in 2024, presenting the company's exploration and progress on thepath of sustainable development.To enhance the comparability and completeness of the report, some parts of this report extend beyondthe time frame.

The sources of data disclosed in this report include:

?Relevant statistics within HLA Group?Publicly disclosed data?Public data from third-party surveys, government departments, and professional institutions

For ease of expression and reading, in this report:

?"HLA Group Co., LTD." is collectively referred to as "HLA Group".?"HLA Group" may also be referred to as "the company", "the enterprise", "the group" or "we" in thereport.

This report is published in Simpli?ed Chinese and English and is available for public download. You candownload the electronic version of this report on the website of the Shanghai Stock Exchange(www.sse.com.cn).In case of any discrepancy between the Simpli?ed Chinese version and the English version, the simpli?edChinese version shall prevail. Relevant reports and data from previous years can be accessed through theabove channels.

This report is prepared in accordance with the laws and regulations of the regions where HLA Groupoperates and the company's development strategy and is based on corporate social responsibilityperformance up to the reporting period. The data and information involved are from reliable sources.This report is for stakeholder reference only and does not constitute any investment advice, nor should itreplace the independent judgment of the reader. In the event of any inconsistency between the contentsof this report and the statutory disclosure document, the statutory disclosure document shall prevail.This report may contain forward-looking statements based on current operating conditions, and actualresults may di?er due to risk factors or force majeure. HLA Group shall not be liable for any misunder-standing or loss arising from the use of the information in this report.

HLA GROUP 2024 SOCIAL RESPONSIBILITY REPORT

Continuous Journey, Boundless Innovation

0304

Message from the Chairman：

Chairman: Louis Zhou

Data Source: Securities Times（https://wap.egsea.com/detail/article?id=1769694）

HLA Group has remained steadfast in its brand apparel development path. We don't follow the beaten track. Instead, we constantlybreak our thinking, create distinctive clothing brands, improve the e?ciency of the clothing industry chain, and explore new modelsof clothing retail. Over the past decade, we have walked with ?rm steps and a wider path, thanks to the e?orts of every HLA employeeand the support of all our partners.It is the joint e?orts of all of us that have enabled HLA Brand to remain the leader in men's wear and hold the top market share for tenconsecutive years . We have built a 5G smart factory and smart supply chain for cloud clothing and taken the lead in achieving digitaland intelligent transformation in the industry. With nearly 6,000 physical stores and numerous online platforms, a new ecosystem of“All for One Retail” is formed; It made HLA the ?rst clothing brand to be included in the "Brand Power Project - Leading Brand" in 2023.Looking ahead to the next decade, we will follow the principle of "focusing on brands, embracing the world, and bene?ting life", withthe goal of "becoming a world-class, leading brand apparel retail group in China", from being excellent to leading, from walking aloneto together, not only building brands that people love and trust, but also exporting our own strengths and capabilities, and cooperat-ing deeply with outstanding global brands. We will explore new possibilities in brand management and apparel retail to achieve a newleap in the new decade.The period from 2025 to 2030 is a crucial stage for achieving this new leap, so we have proposed the "Strategic Upgrade Plan for2025-2030", focusing on the following strategic directions:

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

Maintain a state of ?ow and focus on the core business of clothing. Continue to strengthen the integrated capabilities of brand opera-tion, supply chain management and channel operation to achieve long-term e?ective growth of the clothing business. Start withclothing to create a better lifestyle for more people.To meet people's diverse needs and individual expressions, HLA Group has incubated popular brands such as HLA Brand, HLA F2C,OVV, and HLA JEANS, covering various clothing segments including men's wear, women's wear, and professional wear. In the future,we will continue to invest in brand building, constantly innovate products, and make our brand beloved by more people.In addition, we will work with our partners to create "brand clothing collection stores" based on the consumption demands of di?erentcities, carefully selecting high-quality brands and products, and continue to explore new possibilities in clothing retail.

2. Embracing the World and Expanding Brand Presence

Extend from self-owned brand incubation to in-depth brand cooperation. We will strengthen cooperation with high-quality globalbrands to build a multi-brand matrix. Over the past three years, we have established strategic partnerships with HEAD and Adidas, within-depth cooperation in brand operation, supply chain management and channel operation respectively.If you want to go fast, go alone. If you want to go far, go together. In the future, we will continue to expand our social circle, import morequality international brands, and o?er consumers more diverse choices.From importing to going out, internationalization is another important part of our brand expansion. We will take root in SoutheastAsia, radiate to the Asia-Paci?c region, look to the world, and cultivate overseas markets with the attitude of "being local and servinglocal". Now we have covered Singapore, Malaysia, Thailand, Vietnam, the Philippines, Kenya, Laos, Maldives and other regions, and wewill continue to expand into the Middle East, Central Asia and Australia.

3. Bene?ting Quality Living to Meet People’s Aspirations

The pursuit of a better life is the aspiration of all people, and the realization of their pursuit is our intention and mission. We want toreturn to the essence of retail, and through our strong supply chain and channel integration capabilities, provide more people withhigh-quality products that are both good in quality and low in price, to meet people's upward pursuit of a better life and the high-quali-ty development of modern society.Since last year, we have formed a strong partnership with JD.com to create JD Outlets based on the resource advantages of both sides,providing consumers in growing cities with more cost-e?ective premium brand products and convenient shopping experiences. Fromclothing, light luxury, sports and outdoor to boots and shoes, it enables more consumers to easily experience and purchase theworld's top brands right at their doorstep. We will also expand to more cities in the future to bring people closer to a better life.Under the 2030 policy of "Focusing on Brands, Embracing the world, and bene?ting Life", HLA Group will continue to empower qualitybrands, share responsibilities with partners, and build two-way connections between China and the world begin with clothing &accessories, so that more people can enjoy a better lifestyle. This is the original intention and will remain so in the future!Inspiring a beautiful life from clothing & accessories. 2025, let's keep moving forward!

Sustainable Development

Management

Solid GovernanceBuilding the Foundationfor Development

Green ManufacturingForming a Low-carbonFuture

National QualityCreating a SustainableConsumption Ecosystem

People-OrientedAppendixBuilding a Better SocietyPreface

HLA GROUP 2024 SOCIAL RESPONSIBILITY REPORT

Sustainable DevelopmentManagement

Solid GovernanceBuilding the Foundationfor Development

Green ManufacturingForming a Low-carbonFuture

National QualityCreating a SustainableConsumption Ecosystem

People-OrientedAppendixBuilding a Better Society

Preface

0506

About HLA

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

OV V

Company Pro?le

HLA Group is a leading apparel and lifestyle retail group in China. Its business portfolioincludes proprietary brand operations, international brand agency, group purchasecustomization, and the JD Outlet partnership. The company owns multiple in-housebrands, including its ?agship brand "HLA," the women's fashion brand "OVV," thetrend-focused brand "HLA JEANS," and the infant and children’s brand "YeeHoO". Interms of international brand cooperation, the company is the exclusive agent for theAustrian sports brand HEAD in China and holds exclusive retail rights for Adidas FCCseries products in mainland China. Additionally, the company operates a professionalattire customization service under the name "HLA F2C". In 2024, the company partneredwith JD.com to launch the "JD Outlet" initiative, aiming to expand its market share andenhance competitiveness through a multi-brand, omnichannel strategy. The key brandsand business segments of the company are summarized as follows:

HLA, founded in 2002, has long been committed to being a reassuring and comfortingdomestic brand, o?ering stylish designs, quality products and humanized clothingexperiences to men aged 20 to 45, and standing ?rm in the market as a friendly anddeeply rooted "national brand".We ?rmly believe that good clothing is alive, not only to enhance personal comfort anddignity, but also to believe in and a?rm the unique self-worth of every ordinary yetextraordinary individual in China. Therefore, adhering to the product philosophy ofadapting to the human body, improving human posture, meeting human needs, andreaching human expectations, we continuously enhance inclusiveness and coverage,iterate design professionalism, keep up with contemporary changes in needs, andimprove insight and empathy. We create vibrant clothing to serve the brilliance of everyindividual.

海澜之家 | HLA

Founded in 2017, OVV is dedicated to creating modern wardrobes for professionalindependent women with "e?ortless sophistication". Based on the concept of harmony,it promotes honest and valuable pragmatism, blending design sense, stylization andapplicability to create value for contemporary women from the inside out.

About HLA

0708

JD Outlets

Adidas FCC黑鲸 | HLA JEANS

英氏 | YeeHoO

HEAD | 海德

HLA F2C

As a trendy men's wear brand under the group, HLA Jeans has always been committedto exploring the attitude of contemporary youth, adhering to the spirit of "being di?er-ent", with "community culture × Joyful life " as the brand focus, penetrating di?erentcultural circles, and co-creating a new way of trendy life with Chinese youth. Theproduct line is divided into three series: the basic and versatile "Me " series, the trendyand quality "Cool " series, and the fun and exclusive "Collaboration" series, to meet theneeds of young people in di?erent life situations and create a fashion aesthetic that issimple, quality, technological and cost-e?ective.

i+

i+

YeeHoO is now the group 's own premium baby lifestyle brand. established in 1995,YeeHoO has been dedicated to high-quality life and growth products for infants andtoddlers aged 0-6. Starting with the improvement of the ?rst modern onesie, it hasalways insisted on using globally selected fabrics and international leading manufactur-ing technology. It has also collaborated with top international maternal and infantbrands to create a one-stop premium baby and toddler collection store in China,earning word-of-mouth from three generations of mothers.The brand adheres to the product philosophy of "purity, softness, cleanliness andbeauty", adheres to the Class A standards for infants and toddlers, conducts 15 strictquality inspections, and consistently o?ers "valuable design". Our products cover allcategories including baby underwear, outerwear, cribs, bedding, chairs, shoes, hats,socks, and toiletries, and we have developed ?ve core competencies: We have a solidmarket share and position in the industry, and have won many important awards thatare well-known in the industry and recognized by consumers at home and abroad. Ourproducts are sourced from natural and high-quality raw materials, are suitable for thebody shape of Chinese babies, have strict craftsmanship and quality inspectionstandards that are higher than the national standard, have a design concept thatenlighten beautiful values, and have reached strategic cooperation with internationalquality products.

As a competitive sports brand with a history of over 70 years, HEAD, with its ?rst-classathletes as the core asset, has become the designated equipment supplier for manyworld champions in various competitive sports, including skiing and tennis, thanks to itsprofound historical accumulation, pure professional sports heritage, and cutting-edgeprecision technology and craftsmanship.The group will continue to develop professional sports line products based on the brandgenes of tennis and skiing, as well as full-journey apparel and equipment both on ando? the ?eld, to meet the needs of sportswear and equipment in various scenarios ofsports life, from professional competitive-level athletes to sports enthusiasts, to supportand help them experience the charm of sports, break through their own limitations, andprovide them with everything they need to win.

The Adidas FCC（Future City Concept） is a new product line for emerging markets launched by Adidas China and the

company, which is positioned to o?er consumers products with better value for money. The company holds an exclu-

sive retail authorization for Adidas FCC series products in Mainland China through its controlled subsidiary, SIBOZI-

Brand Management (Shanghai) Co., Ltd. of the Adidas FCC series products in mainland China.

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

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

drawing on the multi-brand expertise of HLA Group, we create all-round wardrobes for professional elites with products

that combine craftsmanship and intelligent manufacturing and create high standards of product value for the industry.

HLA F2C adopts an independent production and operation model to provide personalized clothing products for ?nan-

cial, communication, transportation, energy, government agencies, education and other enterprises and institutions,

including men's and women's suits, trousers, waistcoats, skirts, shirts, jackets, overcoats, windbreakers, down jackets,

windbreakers and other categories of clothing. In particular, its ?agship products such as "?ne suits", "non-iron shirts",

and "?ne non-iron shirts" are highly favored by the market.

JD Outlets is a city outlet format jointly launched by the company and JD.com. It adopts the strategy of "big brands at

low prices" and opens "JD Outlets" discount stores o?ine, aiming to enable consumers to purchase genuine big brands

with higher cost performance right at their doorstep.

The project mainly covers categories such as sports and outdoor, men's and women's wear, children, light luxury and

beauty products. The stores are home to sports and outdoor brands such as Nike, Adidas, Puma, Under Armour, Asics

and North Face, light luxury brands such as COACH and MCM, beauty brands such as Dior, Givenchy, Estee Lauder, SK-II

and CPB, as well as well-known men's and women's apparel brands.

HLA GROUP 2024 SOCIAL RESPONSIBILITY REPORT

Sustainable Development

Management

Solid GovernanceBuilding the Foundation

for Development

Green ManufacturingForming a Low-carbonFuture

National QualityCreating a SustainableConsumption Ecosystem

People-OrientedAppendixBuilding a Better SocietyPreface

1997The company was established,with ?ne spinning capacityranking among the top in China.

2001Renamed KainuoTechnology Co., Ltd.

2017

Launched multiple brandsincluding HLA JEANS and OVV,with strategic footholds in KualaLumpur and Malaysia to driveoverseas growth.

2019Acquired a baby and children’sapparel brand, YeeHoO, graduallyforming a diversi?ed brandportfolio covering menswear,womenswear, childrenswear, andprofessional attire.

2020

2021Renamed HLA Group Co., Ltd. andlaunched a multi-brand,multi-category, group-orientedstrategic roadmap, aiming tobuild a comprehensive lifestyleretail group.

2023

Selected as part of CCTV’s BrandPower Project, Title sponsorshipof a launch vehicle.

2024

Formed a strategic partnershipwith JD.com, launching “JDOutlets”; "More Warm” Project 10Years Anniversary2022The 20th anniversary of HLA brand.

2000Listed on the Shanghai StockExchange in 2000 with the stockcode 600398, under the abbrevia-tion "Dechen Co., Ltd.".

2014

Successfully listed on theA-share market. Renamed HLACo., Ltd., with brand appareloperations formally establishedas its core business.

2018Received investment fromTencent, accelerating industrialintegration and upgrading, andachieving a win-win scenario inthe new retail fashion industry.

The Development of HLA Group

0910

HLA GROUP 2024 SOCIAL RESPONSIBILITY REPORT

Sustainable DevelopmentManagement

Solid GovernanceBuilding the Foundation

for Development

Green ManufacturingForming a Low-carbonFuture

National QualityCreating a SustainableConsumption Ecosystem

People-OrientedAppendixBuilding a Better Society

Preface

The new Chairman, ZhouLichen (Louis Zhou), hastaken o?ce.

· Corporate Governance· Financial Performance· Risk management,· Information disclosure

· Product Quality and Safety· Service Experience· Environmental Responsibility

· Compensation and Bene?ts· Career Development· Safety and Health· Corporate Culture

· Cooperative Stability· Social and Environmental Responsibility· Delivery Quality

SustainableDevelopment Strategy

Stakeholders

Expectations

&Demands

Feedback & Actions

Governments

andRegulators

Customers(consumers)

Shareholders

andInvestors

Employees

Suppliers

andFranchisees

CommunicationChannelsBoard of Directors

（Setting key performance and monitoringthe implementation of objectives）

HLA Group regards sustainability as a core priority for the enterprise to remain competi-tive and socially valuable in the new era and is committed to fully embodying the ESG(Environment, Society, Governance) concept in its business strategy and internalgovernance. To better coordinate and implement all ESG e?orts, the company hasestablished a relatively independent and e?cient sustainable developmentgovernance system to ensure that sustainability issues are given full attention in theinternal management process.

SustainableDevelopmentManagement

Environment

In terms of the environment, the group will rely on 5G smart factories and digital supply chain capabilities tocontinuously optimize resource utilization e?ciency and reduce the burden of energy consumption andemissions. Key areas include the development and application of sustainable products, the introduction ofenergy-saving and consumption-reducing technologies, and the green transformation of operations.

Social Responsibility

In terms of social responsibility, the group will strengthen the employee development system to safeguard laborrights and health and safety. At the same time, in combination with the "All for One Retail" layout, we willexpand community co-construction and public welfare cooperation projects, promote high cost-performanceproducts to reach more regions, and expand the positive role of inclusive consumption in social well-being.

Administer

In terms of governance, the group will improve the ESG management mechanism, further clarify the responsi-bilities for sustainable development, enhance the ability to identify and respond to risks, improve the compli-ance management and business ethics system, and enhance the resilience and stability of businessoperations.

StakeholderCommunication

Sustainable Development GovernanceFramework

Stakeholder Identi?cation and Primary Communication Channels

HLA GROUP 2024 SOCIAL RESPONSIBILITY REPORT

Sustainable DevelopmentManagement

Solid GovernanceBuilding the Foundation

for Development

Green ManufacturingForming a Low-carbonFuture

National QualityCreating a SustainableConsumption Ecosystem

People-OrientedAppendixBuilding a Better SocietyPreface

The company has established a top-down Sustainable Development Manage-ment system with clear rights and responsibilities to ensure that the concept ofsustainability is embedded in the company's strategy.The board of directors is the highest management body for the company'ssustainable development, responsible for reviewing the company's overallsustainable development strategy, important goals and major issues to ensurethat the company's development direction is in line with the requirements of thesustainable development strategy.Management, as the core of strategy execution, promotes the implementation ofvarious sustainable development tasks in a coordinated manner and supervisesand tracks key performance indicators.The working group formulates plans based on strategic goals and managementdeployment, in line with the responsibilities of the department, and implementsthem in daily operations and management to achieve a closed loop of responsi-bility and continuous improvement.This system strengthens the synergy among strategic planning, organizationalassurance and execution, providing strong support for the steady advancementof the company's sustainable development strategy

HLA Group has always been committed to building a more systematic and forward-looking sustainable develop-ment strategy, focusing on deeply integrating environmental and social factors with the company's ?nancialperformance, identifying and managing issues that have a critical impact on the company's value creation, riskcontrol and long-term stable operation. Looking to the future, the group will further integrate the concept ofsustainability into its brand strategy and daily operations, build an environmental, social and governance (ESG)management system covering the entire value chain under the overall policy of "focusing on the brand, embrac-ing the world, and bene?ting life", and continuously improve its overall performance and industry leadership insustainability.

Management（Set sustainability goals and communicaterequirements to functional ）

Working Groups（Implementation of indicators and collection of information）

HLA Group understands maintaining e?ective and smooth communication with multiple stakehold-ers is an important channel for enhancing sustainable value. To this end, the company identi?es theexpectations and concerns of stakeholders in various ways and responds to them in businessdecisions and ESG management.

The company has long classi?ed its major stakeholders as: government and regulatory authorities, shareholders and investors, customers (consumers),employees, suppliers and franchisees, communities and the public, media, etc.

· Compliant operation· Tax Compliance· Environmental Protection· Energy Conservation· Emission Reduction

Annual/extraordinarygeneral meeting, earningsbrie?ngs

After-sales service hotline,online social platform,satisfaction survey

Sta? congresses, internalforums and questionnaires,departmental meetings

Supplier evaluation andcoaching, joint meetings, sitevisits and audits

Government research,policy symposiums,submission of compliancereports

Announcement of operating data and ESGperformance, keep communicationchannels open and e?ective

Upgrade products and services based onfeedback

Develop training and incentive policies, andestablish employment system and compen-sation framework aligned with the compa-ny’s development

Develop supplier evaluation and assessmentsystem, enhance industry dialogue andcollaboration, uphold fairness, impartiality,and transparency in bidding activities

Respond promptly to new regulatory rules,enhance the corporate governance

Communities

Media

1314

HLA GroupSustainability Stakeholder Map

Institutional Investors

Strategic Partner Investors

Individual Investors

Local Government Departments

Industry Regulatory Authorities

National Regulatory Authorities

O?ine Individual Consumers

Overseas Clients

Institutional Clients

Online Consumers

Senior Management

Middle Management

Front-line Sta?Specialists and Engineers

Raw Material Suppliers

Logistics and Warehousing Partners

Advertising and Media Partners

Sales and Distribution Partners

Technology and Equipment Suppliers

Shareholders &

Investors

Customers &Consumers

Employees &Labor Unions

SuppliersandPartners

Government &Regulatory Authorities

Social Media

Social Responsibility Guidance Bodies

Factory Neighborhood Communities

Mainstream Media

Industry Professional Media

Logistics and Supply Chain Associations

Textile Industry Associations

Economic and Management Academies

Industry Associations

Think Tanks and Research Institutions

Sustainable Development Related Media

Consumer Rights Protection Organizations

Environmental NGOs

Charitable Organizations

Local Communities

Others

ESG(∞)外部 (∞)关联 (∞)紧密 (∞)核心 (∞)核心 (∞)紧密 (∞)关联 (∞)外部

stakeholders involvedstakeholders impacted

StakeholderCommunication

滚滚长江东逝水

HLA GROUP 2024 SOCIAL RESPONSIBILITY REPORT

Sustainable DevelopmentManagement

Solid GovernanceBuilding the Foundationfor Development

Green ManufacturingForming a Low-carbon

Future

National QualityCreating a SustainableConsumption Ecosystem

People-OrientedAppendixBuilding a Better SocietyPreface

· Community Engagement· Philanthropy· Environmental protection· Employment support

Public welfare activities,local cooperation projects

Publicize the results of public welfareactions and actively participate in localpublic welfare and public a?airs

· Corporate News Coverage· Social Responsibility Projects· Industry impact

Press conferences, pressinterviews, companyannouncements

Timely release of the company's majordevelopments and ESG initiatives to raisepublic and media awareness of thecompany's responsible image

Stakeholders

Expectations

&Demands

Feedback & ActionsCommunicationChannels

1516

Environmental TopicsSocial TopicsGovernance Topics

Clean Production

ResourceUtilization

CircularEconomy

Climate ChangeResponse

Product QualityControlCustomer Rights ProtectionLabor RightsSustainableProcurement

Innovation and IntellectualProperty ProtectionTalent Development

Supply ChainManagementEmployeeHealth and Safety

Social Contribution

Business EthicsESG Management

Risk Management

Shareholder Rights Protectionand Investor Relations

Governance Structure andOperational Mechanism

HLA Group Sustainability Materiality Matrix

MaterialityAssessment

Process and Results

Stakeholder Research

Internal Review &Quanti?cation

Map Out the Materiality Matrix

Issue identi?cation and action

Issue Primary Selection

HLA Group uses the "Double-Materiality Assessment" approach to systemati-cally rank and evaluate potential issues in two dimensions: "importance to thecompany's ?nancial impact" and "importance to the company's social andenvironmental impact". The company referred to standards such as GRI, ISSBand the Shanghai Stock Exchange 'Sustainability Reporting Guidelines' toensure the international universality and local applicability of the analysismethod.

Based on the company's business characteristics, industry hotspots, as well as domestic andinternational ESG standards (GRI, ISSB) and regulatory guidelines (such as the "SustainabilityReporting Guidelines" of the Shanghai Stock Exchange), a list of 18 potential issues covering the ?eldsof environment, society and governance is compiled.

Collect evaluations of the importance of the issue from various stakeholders through questionnaires,symposiums, interviews, etc. Focus on listening to multiple perspectives, taking into account both?nancial and non-?nancial dimensions.

The working group works with departments such as ?nance, strategy, and risk control to assess theextent to which each issue a?ects the company's ?nancial performance (such as earnings, costs,investor con?dence) and sustainable operations (such as environmental friendliness, employeestability, brand reputation) using quantitative or weighted scoring methods.

Visualize the assessment results under the "Double-Materiality" dimension as a two-dimensionalmatrix (charts can be inserted in the report), distinguishing high, medium,and low priority issues.

Incorporate high-priority issues into the company's annual ESG priorities, develop correspondingmanagement strategies and measures, disclose them externally and review performance regularly;Mid and low priority issues will also be followed up or reserved in a timely manner.

HLA GROUP 2024 SOCIAL RESPONSIBILITY REPORT

Sustainable Development

Management

Solid GovernanceBuilding the Foundationfor Development

Green ManufacturingForming a Low-carbonFuture

National QualityCreating a SustainableConsumption Ecosystem

People-OrientedAppendixBuilding a Better SocietyPreface

Importance to Sustainable Development of the Company

Importance to the Company's Financial Impact

1718

Annual Honors and Recognition

Name of HonorAwarding UnitMinistry of Industry and Information TechnologyMinistry of Industry and Information TechnologyMinistry of Industry and Information TechnologyMinistry of Industry and Information Technology

National Green FactoryExcellence-level smart factory

China National Textile and Apparel CouncilChina National Textile and Apparel CouncilChina National Textile and Apparel Council

China's textile and garment Brand Competitiveness Advantage Enterprises in 2024

List of CNTAC Digital Transformation units

Top 70 Chinese Workwear Enterprises in 2024

GYBrand Global Brand Research InstituteChina's 500 Most Valuable Brands 2024

Organizing Committee of the Golden Wheat Awards

The 11th Golden Wheat Awards "Best In?uential Brand Award",

"Performance Marketing Bronze Award"

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

Henan Educational Equipment ExpoFirst Prize and Outstanding Designer Award of Henan Education Equipment Expo

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

Typical cases of quality improvement and brand building inindustry and information Technology in 2024 (HL-CEcqb model promoting Brand building of Ecological-level quality standards for clothing)Pilot demonstration Project of Industrial Internet 2023

(Pilot Project of Network Integration Innovation Application for the clothing industry)Second Prize for Scienti?c and Technological Progress of China

National Textile and Apparel Council (Key Technologies and Industrial Application of Digital Multi-dimensional Garment Cutting)

China National Garment AssociationChina National Garment AssociationKey recommended projects for technological innovation

in China's garment Industry in 2024(Hailan Yunfu Smart Factory Industrial Internet Integration Innovation Industrial Application)

Organizing Committee of the Cherry Awards

The 9th Cherry Awards - Outstanding Performance Award forChildren's Clothing Brand of the Year（YeeHoO）

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

(YeeHoO 'P&P' Series)

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

HLA GROUP 2024 SOCIAL RESPONSIBILITY REPORT

Sustainable DevelopmentManagement

Solid GovernanceBuilding the Foundation

for Development

Green ManufacturingForming a Low-carbonFuture

National QualityCreating a SustainableConsumption Ecosystem

People-OrientedAppendixBuilding a Better SocietyPreface

Solid Governance

Building the Foundation for Development

Governance Structure and Operation Mechanism 21-22Shareholder Protection and Investor Relations 23-24Risk Management 25Business Ethics 26

Responding to the SDGs：Main Contents

1920

HLA GROUP 2024 SOCIAL RESPONSIBILITY REPORT

Sustainable Development

Management

Solid GovernanceBuilding the Foundation

for Development

Green ManufacturingForming a Low-carbonFuture

National QualityCreating a SustainableConsumption Ecosystem

People-OrientedAppendixBuilding a Better SocietyPreface

GovernanceStructure andOperationMechanism

HLA Group strictly adheres to laws and regulations such as the Company Law of thePeople's Republic of China, the Securities Law of the People's Republic of China, andthe Guidelines for the Governance of Listed Companies, continuously optimizes thecorporate governance structure and operation mechanism, and constantly improvesthe governance level and decision-making e?ciency.In 2024, the company conducted a systematic assessment and improvement of itsgovernance structure, with a focus on formulating key institutional documents suchas the Management Measures for Independent Directors of HLA Group Co., LTD., theEntrusted Wealth Management System of HLA Group Co., LTD., and the PublicOpinion Management System of HLA Group Co., LTD. Further strengthen the manage-ment of independent directors, compliance with fund operations, and informationmanagement mechanisms. At the same time, the company has revised andoptimized the implementation rules of the various special committees of the board ofdirectors, continuously improving the standardization and professionalization of thegovernance system.

1.1

Key Performance Indicators

Number of shareholders' meetings:

Number of proposals under reviewat the shareholders' meeting:

Total board members:

with 3 independent directors

Number of board meetings:

Total number of proposalsreviewed by the board:

Total supervisoryboardmembers:

with 1 employee representative supervisor

Number of supervisoryboard meetings:

Number of proposalsunder review by the board:

海澜之家集团组织框架图

股东大会董事会

监事会董事会办公室总经理

内控部

OVV

The Board of Directors, the Board of Supervisors and ManagementThe company has always attached great importance to the professional competence and operational e?ciency of the board of directors, the board ofsupervisors and the management team, and is committed to building a scienti?c, standardized and e?cient governance system.The board members have diverse professional backgrounds in law, ?nance, strategic management, corporate governance, etc., and can provide professionaldecision support for the company's development. As of the end of the reporting period, the board consists of nine members, including three independentdirectors. Each director has extensive industry experience and professional expertise, ensuring that the company has a multi-dimensional perspective andcareful consideration in strategic planning, risk management, and decision-making on major matters. In 2024, the board held seven meetings and reviewed33 proposals covering key issues such as the company's development strategy and personnel appointments and dismissals. Independent directors playeda supervisory and professional advisory role throughout the process to ensure the scienti?c and compliant nature of the decisions.The company changes its board of directors every three years and has a sound nomination and selection mechanism that considers the candidates' industryexperience, educational background and ability structure to enhance the professional diversity and governance capacity of the board. The company strictlyadheres to the "Articles of Association of HLA Group Co., LTD." and has established clear rules of procedure for the board of directors, ensuring that thematerials are fully prepared before the meeting, the decision-making process is standardized and transparent, and the resolution content is legal and valid.The supervisory board, in accordance with the duties conferred by laws, regulations and the Articles of Association, strengthens and implements the supervi-sory and inspection functions, and gives full play to the role of the supervisory board in the governance of listed companies. At present, the supervisory boardconsists of three members, including one employee representative supervisor. In 2024, the supervisory board held four meetings, reviewed 17 proposals, anddeliberated on matters such as ?nancial reporting, internal control, and related-party transactions, e?ectively ful?lling supervisory duties, promptly identify-ing and correcting potential risks, and ensuring the company operates in accordance with the law and regulations.All members of the company's management team have rich industry experience and excellent management capabilities. Through e?cient collaboration andforward-looking management, the management team is committed to promoting the realization of the company's high-quality development goals andcontinuously enhancing the company's overall strength and market resilience in a sustainable competitive landscape.

Shareholders' MeetingIn 2024, the company held a total of two general meetings to review 13 proposals. During the shareholders' meeting, the company had su?cient communica-tion and exchange on important matters such as corporate strategic development, ?nancial status, dividend policy, and changes in directors. Through theshareholders' meeting, the company listens to shareholders' suggestions and provides timely feedback, enabling shareholders to have a deep understandingof the company's business strategy and performance, and fully guaranteeing shareholders' right to participate in and be informed of the company'sgovernance.

2122

HLA GROUP 2024 SOCIAL RESPONSIBILITY REPORT

Sustainable Development

Management

Solid GovernanceBuilding the Foundation

for Development

Green ManufacturingForming a Low-carbonFuture

National QualityCreating a SustainableConsumption Ecosystem

People-OrientedAppendixBuilding a Better SocietyPreface

HLA Group Organizational StructureShareholders' Meeting

General Manager

Board of SupervisorsO?ce of the Board of DirectorsAudit Committee

Chairman's O?ceHuman Resources DepartmentFinance DepartmentLegal DepartmentStrategic Information CenterAdvertising DepartmentCapital Investment DepartmentHLAHLA F2COVVYeehooSIBOZIBrand Incubation DivisionNew Business DevelopmentDepartmentInternal ControlDepartment

Strategy CommitteeNominationCommitteeRemuneration andAppraisal Committee

Board of Directors

Shareholder Rights Protection andInvestor Relations

Key Performance Indicators

Number of periodicreports issued:

Number of interimannouncements issued:

Number of earningsbrie?ngs organized:

Transparent and TimelyInformation Disclosure

A Prudent ShareholderReturn Policy

Active and E?ectiveInvestor Communication

1.2

RiskManagement

1.3

Compliance Building

Risk Prevention and Control

Internal Audit

Dividend YearPayout Date

Pre-tax Dividend

(RMB/Share)

Pre-tax Total Payout (RMB)1,857,431,261.55

0.4320222023.06.06

2,689,551,365.76

0.5620232024.06.06

0.182024

H2（Estimated）

1,104,637,168.08

864,498,653.28

0.2320242024.09.05

H1

2324

HLA GROUP 2024 SOCIAL RESPONSIBILITY REPORT

Sustainable Development

Management

Solid GovernanceBuilding the Foundationfor Development

Green ManufacturingForming a Low-carbonFuture

National QualityCreating a SustainableConsumption Ecosystem

People-OrientedAppendixBuilding a Better SocietyPreface

The group has always adhered to the principles of fairness and timeliness in information disclosure.Directors, supervisors and senior management of the company have performed their duties faithfully anddiligently to ensure that the disclosed information is truthful, accurate and complete. They have safeguard-ed investors' right to know with an honest and pragmatic attitude and enhanced the company's marketreputation.In accordance with the requirements of the "Information Disclosure A?airs Management System", thecompany has improved the internal management process of information disclosure and established theinformation disclosure responsibility system to ensure the standardization and e?ciency of informationdisclosure work.Throughout the year, the company issued a total of 4 periodic reports and 52 interim announcements,disclosing important information such as the company's operating performance and ?nancial status indetail, enabling investors to keep abreast of the company's dynamics and understand its true situation in atimely manner.

HLA Group adheres to the concept of compliance operation, continuously improves various managementsystems and optimizes management processes, clari?es the responsibilities and authorities of eachdepartment and personnel, conducts audits on key links in the operation process, and continuouslyoptimizes the risk management activity process to achieve the control goals of strengthening internalcontrol, preventing risks, and promoting compliance.

Establish internal systems covering material procurement, design and development, project construction, contract management, related-party transactions,etc. Promote the standardization, process and institutionalization of internal management, organize senior executives and employees to study relevant rulesand regulations, and ensure the legal and compliant operation of the company.

We have established a risk management system covering the entire process of risk identi?cation, assessment, monitoring and control. According to theprocess, we have conducted risk identi?cation for each business, assessed each risk level, and formulated corresponding control measures for each businessrisk in a timely manner to ensure e?ective response to each risk.

According to the "Internal Control Evaluation Speci?cation" and the "Internal Audit Management System", the Internal Control Department conducts anannual self-assessment of internal control, makes an independent and objective evaluation of the e?ectiveness of the design and operation of the compa-ny's internal control, and engages third-party independent institutions to audit the company's internal control, and continuously improves the company'sinternal control system.

HLA Group attaches great importance to investor relations management, adhering to the principles ofopenness, transparency and e?cient communication, and actively maintains close communication withinvestors. The company has established a dedicated investor relations team responsible for daily commu-nication with investors, investor hotline services, and the management and operation of the informationinteraction platform.Throughout 2024, the company organized 3 earnings brie?ngs where directors and senior managementdiscussed the company's operating performance, industry trends and future development strategies,answered questions of concern to investors on the spot, and enhanced investors' understanding andcon?dence in the company's operating conditions. In addition, the company actively answered calls frominvestors throughout the year and responded to questions raised by investors through the investor interac-tion platform, covering multiple dimensions such as the company's future dividends and ?nancial dataanalysis.HLA Group continues to implement an aggressive cash dividend policy to reward shareholders. Thecompany has reasonably determined the amount and frequency of dividends based on various factorssuch as overall earnings, capital needs and development strategies to ensure the long-term stability of thedividend policy. In September 2024, the interim dividend policy was implemented for the ?rst time, fullydemonstrating the company's solid ?nancial strength and its emphasis on long-term value returns forinvestors.

In addition, the company actively listens to the opinions and suggestions of investors regarding the dividend policy, fully considers the demands of investorswhen formulating the shareholder return policy, and continuously optimizes the shareholder return mechanism to ensure a good alignment between thelong-term interests of investors and the company's sustainable development goals.

Anti-corruptionHistleblowing

Supervision &

Assessment

Management

System

Integrity

Promotion

RiskIdenti?cation

HLA GroupRisk ManagementFlow Chart

RiskManagement

1.3

BusinessEthics

1.4

RiskAssessment

Risk Response

Risk Monitoring

Review and

Inspection

HLA Group Risk Management Process

2526

HLA GROUP 2024 SOCIAL RESPONSIBILITY REPORT

Sustainable DevelopmentManagement

Solid GovernanceBuilding the Foundation

for Development

Green ManufacturingForming a Low-carbon

Future

National QualityCreating a SustainableConsumption Ecosystem

People-OrientedAppendixBuilding a Better SocietyPreface

HLA Group earnestly implements relevant laws and regulations such as the Company Law of the People's Republicof China and the Anti-Unfair Competition Law of the People's Republic of China and always advocates and practicesthe business philosophy of integrity, honesty and fairness.

The company has established speci?c responsibilities and de?ned behavioral standards foremployees in each position in accordance with internal regulations such as the Anti-Fraud Manage-ment System and the Evaluation Management System for Corporate culture Construction. Throughinstitutional constraints and enforcement mechanisms, a sound integrity management system isestablished to provide institutional guarantees for the stable development of the enterprise.

The company strengthens the compliance supervision mechanism, conducts supervision andassessment of employees and management, and ensures that all systems are e?ectivelyimplemented. In response to the problems identi?ed during the supervision process, a closed-loopmanagement system for recti?cation is established to ensure timely correction and continuousimprovement of the problems.

The company continues to organize training for all sta?, covering corporate culture, professionalethics, integrity requirements, etc., to enhance compliance awareness and sense of responsibilityamong employees, and to implement the concept of integrity in all business departments andprocesses, making it deeply rooted in every aspect of the company's operation.

The company has established a diversi?ed anti-corruption reporting system and collects informa-tion through various channels such as phone, email and reporting boxes. The companyimplements a con?dentiality policy for whistleblowing information to safeguard the rights andinterests of whistleblowers. In response to the reports, the company will promptly verify and handlethem, establish an e?ective anti-fraud management system, and maintain the operating environ-ment of the enterprise.

滚滚长江东逝水

Green Manufacturing

Forming a Low-carbon Future

CLimate Change 29Resource Consumption 30Circular Economy 31-32Enviornmental Compliance Management 32

Responding to the SDGs：Main Contents

2728

HLA GROUP 2024 SOCIAL RESPONSIBILITY REPORT

Sustainable DevelopmentManagement

Solid GovernanceBuilding the Foundation

for Development

Green ManufacturingForming a Low-carbon

Future

National QualityCreating a SustainableConsumption Ecosystem

People-OrientedAppendixBuilding a Better Society

Preface

The company actively explores the risks and opportunities brought by climate change and implements thecarbon peaking and carbon neutrality strategy under the guidance of the national "dual carbon" goals.During the reporting period, the company strictly adhered to environmental protection regulations,adhered to the green and low-carbon concept, established an environmental management system, andpassed the ISO 14001:2015 environmental management system certi?cation.

Responding to Climate Change2 .1

ResourceConsumption

2 . 2

EnergyConsumption

Green O?cePractices

2930

HLA GROUP 2024 SOCIAL RESPONSIBILITY REPORT

Sustainable DevelopmentManagement

Solid GovernanceBuilding the Foundationfor Development

Green ManufacturingForming a Low-carbonFuture

National QualityCreating a SustainableConsumption Ecosystem

People-OrientedAppendixBuilding a Better SocietyPreface

To promote the green and low-carbon transformation of the enterprise, the company has systematically advanced the construction of a carbonneutrality management system around core production and operation scenarios, integrating the concept of low-carbon development into theentire process of production and operation. The company has commissioned a professional third-party organization to conduct a detailedinventory and assessment of its greenhouse gas emissions and has obtained a carbon neutrality certi?cation, clari?ed the baseline of its carbonemissions and facilitating the formulation of scienti?c emission reduction measures. Through comprehensive carbon screening and manage-ment system certi?cation, HLA Group has established a clear path for its carbon reduction targets, actively responding to the United NationsSustainable Development Goal (SDG13) 's call to action to address climate change.

In terms of mitigating climate change, the company is vigorously promoting clean energy substitution andenergy e?ciency improvement. The logistics park has actively adopted clean energy such as solar power andbuilt distributed photovoltaic power generation facilities, e?ectively reducing indirect carbon emissionsresulting from power purchase. At the same time, the company actively purchases and uses electricity fromrenewable energy sources and has obtained green power certi?cation, further optimized the energy structureand reducing carbon intensity.

The company strictly complies with the requirements of relevant laws andregulations such as the Energy Conservation Law of the People's Republic of Chinaand the Water Law of the People's Republic of China and continuously optimizesenergy utilization e?ciency. At present, the company has passed the ISO 50001energy management system certi?cation.The company conducts continuous monitoring and statistics of energy and resource consumption in major industrial parks.To improve the e?ciency of resource utilization, the company has been continuously upgrading its production facilities forenergy conservation. In 2024, the company replaced some of its motors to further improve the e?ciency of its electricalequipment. And install steam waste heat recovery devices (steam economizers) in the factory to reduce steam waste.The company implements the concept of green development in its daily operations, attaches great importance to thecultivation of employees' environmental awareness, and takes a series of green o?ce measures to practice green andlow-carbon o?ce methods, continuously contributing to green and low-carbon development and transformation.

Encourage the use of emails, cloudstorage, and other digital tools toreplace paper documents, andpromote double-sided printing toreduce paper consumption.

Paperless O?ce

Optimize lighting systems and controlindoor temperatures to reduce o?ceelectricity usagePromote High-E?ciency

LightingEncourage employees to take publictransportation to work and prioritizethe use of new energy vehicles forbusiness trips and o?cial receptions

Encourage Low-Carbon

Commuting

Install water-saving devices anddisplay reminders in restrooms tostrengthen employees' awareness ofwater conservation; promote wastesorting, facilitate recycling of o?cesupplies and paper, and realize therecycling of o?ce waste materials.

Install Water-SavingEquipment

Green O?cePractices

EnvironmentalComplianceManagement

2 . 4

Circular Economy2 . 3

Fruit dyeingtechnology

Plant dyeingtechnology

INDIGOJUICEWater-savingdyeingtechnologyINDIGOJUICE

HLA GROUP 2024 SOCIAL RESPONSIBILITY REPORT

Sustainable Development

Management

Solid GovernanceBuilding the Foundation

for Development

Green ManufacturingForming a Low-carbonFuture

National QualityCreating a SustainableConsumption Ecosystem

People-OrientedAppendixBuilding a Better Society

Preface

Fruit dyeing technology involves extracting juice from natural plant fruits to dye fabrics for use in thedyeing process. There is no wastewater in the dyeing process and no chemical additives are added inthe production process. The concept of low-carbon and green development is implemented in all the?elds involved in the company, including industry, consumption and environmental protection, toform a virtuous ecological cycle.

Meanwhile, the company is working with its supply chain partners to advance circular economy practices,strengthen green procurement requirements for upstream suppliers, and build a closed-loop supplychain. In 2024, the company obtained the green supply chain management system certi?cation for theapparel industry. By building a green supply chain ecosystem, the company extends the concept of circularand low-carbon throughout the entire value chain, collaborates with partners to achieve e?cient recyclingof resources, and responds to the United Nations Sustainable Development Goals (SDG12&17) "Responsi-ble Consumption and Production" and "Partnerships for Achieving Goals" with concrete actions.

During the reporting period, the company was not a key pollutant discharge, was not included in the "WuxiCity 2024 Enterprise Environmental Information Disclosure List" released by the Wuxi Municipal EcologicalEnvironment Bureau, and did not receive any administrative penalties due to environmental violations orirregularities.

The company has earnestly implemented environmental laws and regulations such as the EnvironmentalProtection Law of the People's Republic of China, the Law of the People's Republic of China on the Preventionand Control of Water Pollution, the Law of the People's Republic of China on the Prevention and Control of AirPollution, the Law of the People's Republic of China on the Prevention and Control of Solid Waste Pollution, andthe Law of the People's Republic of China on the Prevention and Control of Environmental Noise Pollution in allaspects of clothing production and sales.In the production process of HLA F2C customization business, it strictly complies with relevant national laws andregulations on solid waste, air pollution prevention and control, etc. It strengthens the daily management andsupervision of relevant emission links around environmental impact factors such as wastewater, waste gas,noise and cooking fume, earnestly ful?lls environmental compliance responsibilities, and continuouslypromotes production and operation in accordance with laws and regulations.Through the implementation of these measures, HLA Group has signi?cantly reduced the environmental impactof its production and operation, set a benchmark for green manufacturing in the industry, and been awarded the"National Green Factory" certi?cation, which also aligns with the requirements of the United Nations Sustain-able Development Goals (SDG 9 & 12) for sustainable industrialization and responsible production. We strive tomake fashion production cleaner, more e?cient and more sustainable, and continue to empower ecologicaland environmental protection and the company's high-quality development.

Plant dyeing technology is non-toxic and biodegradable, achieving environmental friendliness andupgrading fading dyeing technology, reducing the dye bath ratio during the dyeing process and furtherreducing water consumption.

The company has adopted INDIGOJUICE water-saving dyeing technology, signi?cantly reducingelectricity and water consumption during the washing process.

HLA Group has rooted the concept of "Green, Low-carbon and Circular" in its brand DNA, practicingresource recycling and value extension from the source of the supply chain to the end of the product lifecycle, covering all links such as raw material procurement, production process, packaging design andlogistics transportation, promoting green transformation in the industrial chain and creating fashionableproducts in harmony with nature.At the raw material end, the company actively uses environmentally friendly raw materials to endow itsproducts with green attributes. On the one hand, the company has introduced a large amount of naturalrenewable ?bers, such as mulberry silk, wool and other high-quality raw materials; On the other hand, newenvironmentally friendly synthetic materials are constantly being developed, including bio-based Sorona??bers, biodegradable Tencel ? (Lyocell ?bers), and recycled polyester. These selected materials are natural,comfortable, breathable and have excellent environmental performance, providing consumers withhealthy, safe and sustainable fashion options while ensuring clothing quality and reducing environmentalimpact.The company also pays attention to the implementation of the concept of recycling in the product designand production process. HLA Group strives to enhance the durability and recyclability of its products andminimize the environmental impact caused by production waste and product disposal. During thereporting period, the company completed several green certi?cations including China Environmental LabelProduct Certi?cation, demonstrating the environmental attributes of its products in terms of raw materialsafety, energy conservation in production, and waste recycling.

National Quality

Creating a Sustainable Consumption Ecosystem

Product Quality Control 35Customer Rights Protection 35-38Innovation-Driven Development & Intellectual Property Safeguards 39-43Responsible Supply Chain Management 44

Responding to the SDGs：Main Contents

3334

HLA GROUP 2024 SOCIAL RESPONSIBILITY REPORT

Sustainable DevelopmentManagement

Solid GovernanceBuilding the Foundationfor Development

Green ManufacturingForming a Low-carbonFuture

National QualityCreating a SustainableConsumption Ecosystem

People-OrientedAppendixBuilding a Better SocietyPreface

In 2024, the company has obtained multiple authoritative certi?cations in the ?eld of customer service.

3 .1

3536

Product Quality Control

3 . 2

Customer Rights ProtectionCustomerServiceGovernance

Product Quality Complaint Handling Process

Store Service Complaint Handling ProcessComplaint AcceptanceRecord and Verify

Implementation

of the Plan

Follow up and

Feedback

Closed-loopManagement

Honors & Accreditations

Free Garment CareNew Store LookingGet More Heartwarming Service Stories

Excellent Supplier of China Mobile's Level 1 Data Collection in 2024 (Grade A)

The company strictly complies with the Product Quality Law of the People's Republic ofChina, enforcing enterprise-speci?c control standards through our professional QualitySupervision Center that ensures end-to-end quality consistency from R&D to delivery.Holding dual certi?cation under GB/T19001-2016 and ISO 9001:2015 Quality ManagementSystems, we have been honored by the China Association for Quality Inspection with the"National Apparel Industry Quality Leadership Brand," "National Integrity Benchmark forProduct & Service Quality," "National Consumer Quality Assurance Product," and otherprestigious accolades in recognition of our quality commitment.

As a cornerstone of our corporate social responsibility, customer rights protection is ensured through comprehensiveservice protocols and performance evaluation mechanisms. Our stores implement a 30-Day Hassle-Free Return Policy:

merchandise remains eligible for exchange or return within 30 days of purchase, provided there is no evidence oflaundering, ironing, staining, alterations, or other impacts on resale value. Furthermore, we provide complimentarygarment ?nishing services including cu?ed hem service to prevent fabric fraying, while utilizing satisfaction ratingdevices to continuously track and improve service quality across all customer touchpoints.

HLA GROUP 2024 SOCIAL RESPONSIBILITY REPORT

Sustainable Development

Management

Solid GovernanceBuilding the Foundation

for Development

Green ManufacturingForming a Low-carbonFuture

National QualityCreating a SustainableConsumption Ecosystem

People-OrientedAppendixBuilding a Better SocietyPreface

Customercomplaint or inquiry

Guide customer toresolve at nearest store

Follow up on storehandling processFollow up oncustomer satisfactionProceed with further actions or close complaintbased on satisfaction

Store manager determines, and handles based onactual condition of the merchandise

Customercomplaint

Recordcomplaintdetails &requirements,contact storefor veri?cation

Respond tocustomer andimplementsolution

Follow up oncustomersatisfaction

Proceed withfurther actionsor closecomplaint basedon satisfaction

CTEAS After-Sales Service System ExcellenceCerti?cation Certi?cate

Customer Satisfaction Certi?cation Certi?cate

National Commodity After-Sales Service

Compliance Certi?cation Certi?cate

3 . 2

3738

The company has established and continuously improved its brand marketing communication management system,strengthened the review mechanism for promotional content, advocated green consumption concepts, and enhancedconsumer awareness of sustainable products. Concurrently, the company regularly collects consumer feedback on brandperception to foster a trustworthy, transparent, and responsible brand image.

The company strictly adheres to the requirements of the Cybersecurity Law of the People's Republic of China, DataSecurity Law of the People's Republic of China, and other relevant laws and regulations, while continuously improvingits information security management system. By clearly de?ning roles and responsibilities as well as operationalprotocols across all stages of customer information management, the company constructs a robust data securitydefense framework through institutional, technical, and personnel dimensions, thereby e?ectively safeguardingoperational data and users' personal information.The company strictly complies with the Advertising Law of the People's Republic of China, Anti-Unfair Competition Law of the People's Republic of China,E-Commerce Law of the People's Republic of China, and other relevant laws and regulations. In all aspects including apparel labeling, product promotion, andmarketing campaigns, the company adheres to principles of integrity, eliminating exaggerated, ambiguous, or false information to e?ectively safeguardconsumers' legitimate rights and interests.

Customer Rights ProtectionMarketing & BrandStewardship

Responsible Marketing

Information Securityand PrivacyProtection

Brand Evaluation and Certi?cation Certi?cate (Five-Star Class)

The 11th Golden Wheat Awards"Best In?uential Brand Award"

HLA GROUP 2024 SOCIAL RESPONSIBILITY REPORT

Sustainable Development

Management

Solid GovernanceBuilding the Foundationfor Development

Green ManufacturingForming a Low-carbon

Future

National QualityCreating a SustainableConsumption Ecosystem

People-OrientedAppendixBuilding a Better SocietyPreface

HLA brand has been consecutively selected for three years into CMG's"Brand Power Initiative · Leading Brand" program, marking the

?rst brand in China's apparel industry toreceive this national-level honor.

Institutional Standards andProcess Optimization

Standardize operational standards for the entire lifecycle of network information handling, includingcollection, transmission, storage, and usage.Clearly inform customers through the Privacy Policy about the purposes, scope, and rights related topersonal information collection, ensuring legal and compliant data acquisition.

Technical ProtectionCapability Enhancement

Deploy data encryption and data masking techniques to implement tiered and classi?ed protectionfor core customer information.Continuously improve protection systems such as ?rewalls and intrusion detection to strengthentechnical safeguards.

Employee Awareness andCompetency Development

Organize specialized information security training programs, emphasizing privacy and con?dentialityawareness and operational protocols.Strictly prohibit unauthorized disclosure of customer information.

Emergency ResponseMechanism Improvement

When information security incidents occur, designated personnel must follow established proceduresto complete incident reporting.The information security department conducts investigations, assessments, handling, reporting, andpost-incident reviews based on the incident severity level.

The 11th Golden Wheat Awards"Bronze Award in Cross-Category Marketing"

The 11th Golden Wheat Awards"Performance Marketing Bronze Award"

The 11th Golden Wheat Awards"Bronze Case Award in Apparel, Footwear & Accessories"

3940

HLA Group consistently prioritizes technological innovation as its core driver, establishing and optimizing a scienti?c R&D system focused on fabricselection, apparel design innovation, and process technology advancement. We deeply integrate digital technologies with intelligent manufacturingsystems to comprehensively propel the brand's transition toward intelligent and innovative development. This includes re?ning innovation managementframeworks, enhancing industry-academia-research collaboration, and fully unleashing the R&D team's innovative capabilities.、Across all subsidiary brands, R&D and design e?orts remain closely aligned with brand positioning and consumer needs. Within the product developmentprocess of the ?agship brand HLA, the company emphasizes critical stages such as development proposal review and ?nal model selection, while outsourc-ing non-core tasks like sampling to supplier design teams. Concurrently, other retail brands leverage their independent R&D strengths to continuouslylaunch high-quality product lines that blend functionality with fashion, delivering superior dressing experiences for customers.

The company synergizes technological advancement with fashion innovation, developing novel ?bermaterials to create cutting-edge products infused with sophisticated technological features.

3 . 3Innovation-Driven Development & IntellectualProperty Safeguards

Technology R&D andIndustrial Innovation

TechnologicalInnovation Achievements

R&D Platform Development

Selected for the 2024 TOPTEN INNOVATIVE TEXTILE PRODUCTS

Selected for the 2024 TOP TENINNOVATIVE TEXTILE PRODUCTS

T-shirts are manufactured using 100%

naturally biodegradable andeco-friendly raw materials

HLA GROUP 2024 SOCIAL RESPONSIBILITY REPORT

Sustainable Development

Management

Solid GovernanceBuilding the Foundationfor Development

Green ManufacturingForming a Low-carbon

Future

National QualityCreating a SustainableConsumption Ecosystem

People-OrientedAppendixBuilding a Better SocietyPreface

YUNFU LAB, located in Jiangyin HLA GarmentIndustrial City, covers 5,000 square meters with2,800 square meters dedicated to testinglaboratories. Utilizing advanced technologiessuch as big data and arti?cial intelligence, itconducts trend analysis, consumer insightmining, and intelligent design development todrive product innovation and rapid iteration.

The company has deepened collaboration with leading researchinstitutions and universities to conduct forward-looking apparelstudies, committed to providing e?ective, intelligent, innovative,and macro solutions for the future of the industry. Focusing ontwo key areas—new fabric development and apparel culturaldevelopment—the company vigorously promotes innovation andindustrial upgrading in the apparel sector, and has jointlyestablished R&D centers and scienti?c research platforms withnumerous research institutions, including Tsinghua University，Donghua University and China Textile Academy.

4142

CategoryDetails

3 . 3

Innovation driven and intellectual property protection

Cultural Heritage andInnovative Application

HLA GROUP 2024 SOCIAL RESPONSIBILITY REPORT

Sustainable DevelopmentManagement

Solid GovernanceBuilding the Foundation

for Development

Green ManufacturingForming a Low-carbon

Future

National QualityCreating a SustainableConsumption Ecosystem

People-OrientedAppendixBuilding a Better SocietyPreface

Research InstitutionDevelopment

AcademicResearch

Exhibition andDisplay

AcademicForumProductDevelopment andApplicationCross-sectorCollaboration

In May 2024, the Tsinghua University-HLA Technology Research Center for Traditional ChineseAttire and Color Studies was established through collaboration with Tsinghua University, dedicated toadvancing academic research on apparel cultural heritage and its integration with contemporary designinnovation.Published The Most Beautiful Chinese Attire Series: Five-Colored Magni?cence of Mamianqun (China's?rst academic monograph on Mamianqun)Completed systematic research and chromatic value codi?cation of 260 traditional Chinese colorspecimens

· May 2024: Hosted the Academic Symposium"Garments Give Birth to All Things: Tradition Reconstruct-ed - Five-Colored Magni?cence of Mamianqun"· September 2024: Organized the Forum"Huaxia Yishang · Tang Dynasty Attire: Chinese Apparel Theoryand Innovative Design Forum"· Completed restoration of 38 sets of Hanfu structural designs from the Han, Tang, Song, and Mingdynasties, including precise reconstruction of historical garment silhouettes, fabrics, and decorativepatterns.· Developed the "Lanxiu Yunshang" Mamianqun brand and achieved commercial application of patternDesigned the workwear collection for China Mobile's 2025 Barcelona Expo, integrating the Yunjian (cloudcollar) element with Ming Dynasty Hanfu structural design principles.

· March 2024: Hosted the "Huacai Yequnshang" Exhibition Featuring selected visuals and innovativedesigns from The Most Beautiful Chinese Attire Series: Five-Colored Magni?cence of Mamianqun.· May-August 2024: Organized the Thematic Exhibition"Garments-Give-Birth-to-All-Things: TraditionReconstructed ? Five-Colored Magni?cence of Mamianqun "· September 2024: Curated and hosted the Salon"Dunyao Guanghua, Shengsheng Buxi: Dunhuang ArtDesign Achievements"

4344

3 . 3

Intellectual Property Protection

By the end of 2024, the company had achieved signi?cant results in the ?eld of intellectual property, with thefollowing cumulative patent holdings:

45463112279

Responsible Supply Chain Management

3 . 4

Supplier Quali?cation Management

Supplier Evaluation

Supplier Collaboration & Empowerment

Supplier Management Process

SupplierManagement

KPI

AssessmentSelection&Admission

CollaborationEmpowerment

Classi?cation

ContinuedCooperation /

Phase-Outor ExitQuali?cation

ReviewIntentionCommunication

HLA GROUP 2024 SOCIAL RESPONSIBILITY REPORT

Sustainable Development

Management

Solid GovernanceBuilding the Foundation

for Development

Green ManufacturingForming a Low-carbon

Future

National QualityCreating a SustainableConsumption Ecosystem

People-OrientedAppendixBuilding a Better SocietyPreface

Innovation driven and intellectual property protection

The company consistently regards technological innovation and intellectual propertyprotection as core strategies for corporate development, strictly adhering to theTrademark Law of the People's Republic of China, Copyright Law of the People'sRepublic of China, Patent Law of the People's Republic of China, and other relevantlaws and regulations. We have established an integrated system encompassing thecreation, utilization, protection, and management of intellectual property. During thereporting period, the company continuously optimized its IP managementmechanisms to ensure both the protection of its own intellectual property rights andfull respect for third-party IP rights. In 2024, the company successfully obtained GB/T29490-2013 certi?cation for its intellectual property management system, furthersolidifying the standardization and professionalization of IP governance.

The company has deeply integrated store sales, logistics warehousing, and supplier production data through the SAP information system. Combined withRFID technology, it has established end-to-end data connectivity to build an intelligent traceability system covering the entire lifecycle of garments. Thissystem digitizes core processes including warehousing, storage, distribution, picking, and shipment, while real-time monitoring production data andwarehouse environmental parameters. These measures signi?cantly enhance supply chain visibility and operational e?ciency and provide data foundationsand technical support for environmental/social responsibility audits and sustainable procurement management.

The company implements a scienti?c evaluation system with dynamic management and a four-tier grading mechanism to optimize supply chain operations.The process includes data collection, evaluation analysis, result review, and noti?cation. Evaluation metrics also incorporate ESG criteria, such as employeerights compliance, occupational health & safety, and environmental performance.

The company strengthens supplier collaboration through an “Online + O?ine” coordination mechanism. Online, it achieves end-to-end process integrationvia o?ce software and email systems; O?ine, it conducts regular on-site visits and exchanges. Annually, the company jointly organizes hundreds of activitieswith suppliers, including training sessions, and presents awards to outstanding suppliers. The training content primarily focuses on green production,resource e?ciency, and compliance management, delivered through hybrid online-o?ine formats tailored to diverse supplier needs, thereby enhancing theiroperational e?ciency and sustainable development capabilities.

The company has established a comprehensive quali?cation evaluation system for supplier onboarding, clearly requiring suppliers to meet basic standardsin factory scale, sta?ng, production environment, and management processes, and to possess certain technical R&D capabilities. Simultaneously, thecompany mandates that suppliers safeguard employees' legal rights and interests by standardizing wage payments, contract execution, and social insurancecontributions, and establish robust personnel management systems in terms of social responsibility; formulate business ethics and anti-corruption policies,strengthen internal control and risk management systems, ensure ?nancial stability and supply chain transparency in terms of governance compliance; andoptimize resource utilization, improve energy e?ciency, enhance water recycling and wastewater treatment, monitor carbon emissions, implement emissionreduction measures, and advance waste classi?cation and recycling systems in terms of environmental management.

Design PatentsUtility ModelPatentsInvention PatentsTotal Valid Patents

People-Oriented

Building a Better Society

Labor Rights 47-50Talent Development 51-53Health and Safety 54Social Contribution 55-56

Responding to the SDGs：Main Contents

4546

HLA GROUP 2024 SOCIAL RESPONSIBILITY REPORT

Sustainable Development

Management

Solid GovernanceBuilding the Foundationfor Development

Green ManufacturingForming a Low-carbon

Future

National QualityCreating a SustainableConsumption Ecosystem

People-OrientedAppendixBuilding a Better SocietyPreface

4748

LaborRights

4 . 1

,

18%

,

82%

,

13%

,

70%

,

17%

44444%

3%

15%

38%

Female Male

High Schooland Below

JuniorCollege

Bachelor'sDegree

Master'sDegree

Technical SecondarySchool and Below

Junior College

Bachelor’sDegree and Above

Gender Distribution of AllEmployees

Educational Background Distribution of R&D Personnel

Educational Background Distribution ofAll Employees

The OverallSituation ofthe Employees

Total Number of R&D Personnel

1,018

Total Number of Employees

26,074

滚滚长江东逝水

HLA GROUP 2024 SOCIAL RESPONSIBILITY REPORT

Sustainable DevelopmentManagement

Solid GovernanceBuilding the Foundationfor Development

Green ManufacturingForming a Low-carbonFuture

National QualityCreating a SustainableConsumption Ecosystem

People-OrientedAppendixBuilding a Better SocietyPreface

Employees are the most asset of an enterprise and the core driving force for high-quality development of the company.In 2024, the company will always adhere to the "people-oriented" philosophy, continuously expand the businessterritory, continuously optimize the human resource structure, and actively build a harmonious, stable, equal,inclusive, safe and healthy working environment. Through standardized employment management systems, soundcompensation and bene?ts systems, diverse communication and participation mechanisms, and caring employeemeasures, the company has continuously strengthened the foundation of labor rights protection and built a sustain-able employer brand with humanistic care and sense of responsibility.In 2024, under the business philosophy of "stabilizing growth and promoting development", HLA Group furtheroptimized and expanded its workforce, bringing the total number to 26,074. The company has focused on multi-di-mensional synergy and specialized division of labor in its human resources layout, forming a complete chain coveringproduction and manufacturing, marketing and sales, technology research and development, ?nancial management,administrative support and other cross-functional departments. The diverse distribution of positions not only meetsthe daily operational needs of each business segment of the company but also provides a solid human resourcefoundation for the long-term development of the enterprise.

In terms of health and living bene?ts, the company has invested a lot of resources to create a healthyand friendly working environment. The company also provides physical and sports facilities such asgyms and basketball courts for its employees, aiming to keep them physically and mentally balanced intheir spare time from work. The company also focuses on enriching employees' cultural life in theirspare time. During festivals, it organizes group activities or team-building projects to unite the team andcreate a positive cultural atmosphere.

Labor Rights

4950

EmployeeCommunicationand Participatio

4 . 1

Employment Complianceand Employee RightsProtection

Diversity,Inclusion andEmployee Care

The company's labor contract signing rate

%

Employee Recognition Mechanism: Annual Double 100 Selection

HLA Group holds the "2023 Double 100 Awards Ceremony" on March 30, 2024

HLA GROUP 2024 SOCIAL RESPONSIBILITY REPORT

Sustainable DevelopmentManagement

Solid GovernanceBuilding the Foundation

for Development

Green ManufacturingForming a Low-carbon

Future

National QualityCreating a SustainableConsumption Ecosystem

People-OrientedAppendixBuilding a Better SocietyPreface

HLA Group has always strictly adhered to relevant regulations such as the Labor Law of the People'sRepublic of China and the Labor Contract Law of the People's Republic of China and has established asystematic employment compliance mechanism and internal management system. The companyimplements a systematic review process during the onboarding stage of new employees, resolutelyeliminating child labor, forced labor, and all forms of discrimination or illegal acts; Supervise the hiringprocess to ensure that all hiring stages are open, fair, competitive and merit based.

Compensation, bene?ts and performance assessment are the main means to safeguard employees'rights and interests and to boost their work enthusiasm. HLA Group maintains a strong salary competi-tiveness in the industry, fully pays the "?ve social insurances and one housing fund" in accordance withnational regulations, and provides multiple incentives such as basic salary, performance bonus,year-end bonus, subsidy, and employee stock ownership plan based on job performance. The companyalso organizes regular performance communication interviews to help employees understand theirgoals and directions for improvement. By combining quantitative assessment with qualitativeevaluation, it ensures fair and reasonable compensation and promotion for employees.To further improve compliance management, the company has connected the front-line attendancesystem to the HR sharing platform and implemented a facial recognition and electronic attendancemanagement model to keep track of employees' attendance in real time. With the continuous improve-ment of digital supervision of labor relations, the legitimate rights and interests of employees have alsobeen more e?ectively protected.While safeguarding labor rights, HLA Group also attaches great importance to the well-being of eachemployee and is committed to building a warm and cohesive workplace ecosystem. The company hascarried out a wide range of targeted public welfare and cultural activities and established a soundinternal care mechanism to ensure that every group can receive the respect and development opportu-nities they deserve within the enterprise.In terms of the rights and interests of female employees, in addition to legally safeguarding therights and interests of women in areas such as fertility protection and special holidays, the companyalso organizes a variety of activities through trade unions and women's federations, such as ?owerarrangement art, women's health lectures, traditional festival cultural experiences and other themeprojects, to help female employees expand their interests and self-worth in their spare time. Thecompany's e?orts in nurturing female talents have been recognized by society. In 2024, several of thecompany's female employees were awarded the title of "Most Beautiful Female Craftsman" at themunicipal level.In terms of employee care, the company has provided ?nancial assistance to many employees whosefamilies have fallen into hardship or have fallen seriously ill and has o?ered targeted student aidsubsidies to families with school-aged children and heavy educational burdens. In addition, the unionactively coordinated with local government departments to solve the school enrollment problem forthe children of migrant workers, successfully helping more than 70 employees' children to attend

Diversity,Inclusion andEmployee Care

In the process of building a positive and enterprisingcorporate culture, HLA Group has continuously strength-ened its internal incentive mechanism. The companyholds the "Double 100 of the Year" awards ceremonyevery year to honor stores and outstanding employeeswith remarkable annual performance. Since the establish-ment of this mechanism, it has become one of the compa-ny's most representative platforms for employee recogni-tion and cultural inheritance. Through this initiative, thecompany has e?ectively stimulated the enthusiasm andinnovation drive of its employees, demonstrating thecompany's emphasis on employee growth.

The company has established various forms of communication with employees, such as online and o?ine feedbackchannels, suggestion boxes, and internal systems, allowing employees to express their opinions and suggestions atany time.For reasonable suggestions or complaints raised by employees, the relevant departments of the company willimmediately conduct research and discussions. Every year, the company systematically collects and compilessuggestions or feedback from employees regarding the company's management system, bene?ts, career develop-ment, etc., and formulates corresponding actions accordingly.In addition, the company explores various forms of employee participation in corporate governance. For example, acertain proportion of employee representatives are allowed to attend supervisory board meetings or senior manage-ment meetings to o?er advice and constructive suggestions. Through such democratic communication mechanisms,corporate decision-making can better consider employees' concerns and enhance their sense of belonging andinitiative.

5152

HLA GROUP 2024 SOCIAL RESPONSIBILITY REPORT

Sustainable DevelopmentManagement

Solid GovernanceBuilding the Foundation

for Development

Green ManufacturingForming a Low-carbonFuture

National QualityCreating a SustainableConsumption Ecosystem

People-OrientedAppendixBuilding a Better Society

Preface

4 . 2

TalentDevelopment

Training System &Base Construction

Systematically enhance the e?ciency and innovationcapabilities of employees through professional skillstraining, practical exercises and project incubationaround core business segments such as production,sales, design and research and development;

For middle and senior managers, strengthen the renewalof management concepts and the improvement ofleadership, and consolidate the management echelonwithin the enterprise;

Carry out specialized talent programs with cutting-edgeand strategic signi?cance, build a sustainable pool of reservetalents, and provide continuous talent support for the futurebusiness diversi?cation and upgrading transformationof the enterprise.

The company has de?ned three major talent development goals:

In terms of the training model, the company adheres to a dual-track approach of "Theory + Practice” andconducts training through forms such as centralized lectures and online learning platforms. The base has multipleequipment operation areas for practical skills assessment and emergency drills, and the e?ectiveness of thetraining is evaluated through multiple dimensions such as examinations and expert reviews.The company actively promotes school-enterprise cooperation and industry-education integration and builds afour-in-one talent cultivation system of "Production, Learning, Research and Application". At present, thecompany not only builds industry-research platforms with higher education institutions and research institutessuch as Tsinghua University, Donghua University and China Textile Academy, but also conducts academicexchanges and topic discussions with universities such as Soochow University, School of Cybersecurity andSchool of Intelligent Manufacturing of Nanjing University of Science and Technology, continuously expanding thedepth and breadth of school-enterprise cooperation.Every year, the group o?ers "School-enterprise Cooperation Training Classes" to universities such as NantongUniversity, Suzhou Institute of Technology, Jiangyin Polytechnic, and Jiangsu Engineering Polytechnic. Relying onenterprise scenarios and mentor resources, the company has established a diverse practical teaching system tohelp students bridge the "last mile" from the classroom to their jobs.In addition, the company has continuously advanced innovative cooperation projects such as the "E-commerceLive Streaming Project" and the "HLA Suxin Incubation Center Project", promoting the opening ofenterprise scenarios and industrial resources to universities, providing the industry with more compound talentsthat meet the needs of the front line, and injecting continuous vitality into its own talent team building.

To systematically and orderly promote multi-level and multi-?eld talent training, the company has built the HLAIntelligent Manufacturing Training Base to high standards. The base is equipped with multimedia classrooms,practical workshops and advanced teaching facilities, which can accommodate 200 trainees for both theoreticallearning and practical training, meeting the company's training needs in multiple links such as cutting, sewing andironing. In 2024, the HLA Intelligent Manufacturing Training Base was awarded the title of "Digital Talent TrainingBase of Wuxi City", fully demonstrating the company's exemplary leadership and industry in?uence in intelligentmanufacturing and talent cultivation.Talent DevelopmentStrategy

To achieve the strategic transformation towards intelligent manufacturing and digital operation, the company hasproposed a talent development strategy of "Empowering all sta?, cultivating at di?erent levels, and contin-uous innovation" in its annual human resources plan. By optimizing the training system in a targeted manner,the company hopes to accelerate the development of mid-to-high-end professionals with more forward-lookingthinking and compound skills based on consolidating the existing business talent reserve and thereby build asustainable talent ecosystem that is "people-oriented, performance-oriented, and innovation-centered".

Talent always plays a core role in driving innovation and maintaining competitive vitality throughout the compa-ny's continuous growth process. The company understands only through a systematic and well-developed talentdevelopment system can it maintain the internal driving force for upward development in a market environmentfull of changes and challenges. In 2024, the company will further upgrade its training model and build amulti-channel and multi-level development path to help employees, and the company move forward hand inhand and create the future together.

5354

HLA GROUP 2024 SOCIAL RESPONSIBILITY REPORT

Sustainable DevelopmentManagement

Solid GovernanceBuilding the Foundationfor Development

Green ManufacturingForming a Low-carbonFuture

National QualityCreating a SustainableConsumption Ecosystem

People-OrientedAppendixBuilding a Better Society

Preface

4 . 2

TalentDevelopment

Onboarding trainingfor new employees

On-the-job skillstraining

Managementtraining

Specialized talentdevelopmentprograms

Training Categories &Course Settings

Annual Training Overview

650,000 +hrs

Training Duration

170,000 +PeopleNumber of Employees Trained

SessionsTraining Sessions

Health &Safety

4 . 3

Occupational Health& Safety ManagementSystem

Safety Training& Education

Emergency Plans& Drills

Safety training is an important means for the company to implement the safety culture and enhance the safetyliteracy of all employees. The company conducts strati?ed safety training for new employees, current employees,transferred/returning employees and relevant parties, and combines regular safety-themed lectures, analysis oftypical accident cases, ?re safety knowledge lectures and on-site drills to instill the awareness of "safety ?rst" in theminds of employees.

The company has established and continuously improved theoccupational health and safety management system and earnestlyimplemented the safety production policy of "safety ?rst, preven-tion foremost, and comprehensive governance". The companyhas compiled the "Occupational Health and Safety Manage-ment Manual" and set corresponding annual safety goals andindicators. During the reporting period, the company obtained theISO45001 occupational health and safety managementsystem certi?cation and established a dedicated safety preven-tion and control command center.The company has engaged third-party institutions to assist in riskidenti?cation and daily monitoring, focusing on common occupa-tional hazard factors such as noise and dust, and conductingrelevant tests on a regular basis. In response to potential risks suchas high temperature, humidity, ?ammability and explosiveness, thecompany has implemented a comprehensive prevention andcontrol model of "technology transformation + safety protec-tion + sta? training", equipped with necessary protectivedetected and recti?ed in a timely manner. At the same time, increase investment in hardware, install central airconditioning and exhaust systems in workshops, and improve the working environment; All special operationpersonnel are certi?ed, safety facilities are inspected and maintained regularly, and the equipment integrity rate ismaintained at a high level, e?ectively ensuring operational safety and stable operation.

The company always prioritizes the lives and health of its employees. Through a systematic and professionalsafety management system, it continuously improves safety regulations and processes and strives to create a safe,healthy and comfortable working environment. In 2024, the company's key measures in occupational health andsafety include systematic risk identi?cation and prevention, comprehensive safety training programs, multi-levelemergency drills, and accident management and accountability mechanisms, to ensure that employees are fullyprotected in their daily production and operation activities and to lay a solid foundation for the company's sustain-able development.

Implementing programs such as the "Pheonix Program", "Team Leader Training Camp", and "Profes-sional Elite Class" for future management and professional backbone and promote the acceleratedgrowth of young talents and the construction of the internal talent echelon of the organization throughconcentrated training, specialized research and study, and internship rotation.

Focusing on topics such as "leadership" and "project management", systematically enhance compre-hensive management skills including communication, team building and performance managementthrough case studies, scenario simulations and expert comments, to help managers complete roletransitions.

O?ering vocational quali?cation training, special job training (such as mechanical repair, electrician,laboratory technician, etc.) and job skills improvement courses for on-the-job employees to enhance theirprofessional capabilities. We also o?er advanced courses such as AI workshops to enhance employees'understanding and application of digital and intelligent technologies.

Setting up "onboarding essentials" for new members, covering corporate culture, rules and regulations,business etiquette and basic workplace skills. Through classroom lectures, scenario simulations, groupdiscussions and mentorship, new employees are helped to quickly integrate into the company and developprofessional ethics and a sense of belonging.

The company's talent development system covers the entire chain from new employees to senior management. Ito?ers a variety of training categories and courses around di?erent levels and professional directions to ensure thatemployees receive targeted guidance and improvement at all stages of their careers.

In production and business activities, the ability torespond to accidents is directly related to the safety oflife and property of the enterprise and its employ-ees.During the reporting period, the companydeveloped speci?c contingency plans for variouspotential risks such as ?re safety, mechanical injury,and accidents involvingspecial equipment (such aselevators andpressure vessels), and conductedrehearsaltraining.

5556

HLA GROUP 2024 SOCIAL RESPONSIBILITY REPORT

Sustainable DevelopmentManagement

Solid GovernanceBuilding the Foundationfor Development

Green ManufacturingForming a Low-carbonFuture

National QualityCreating a SustainableConsumption Ecosystem

People-OrientedAppendixBuilding a Better SocietyPreface

“Supporting National Fitness, spreading brand warmth”

In 2024, the company actively supported the development of national ?tness and sports, demonstrating corporate responsibility and brandwarmth by participating in and sponsoring several high-pro?le events.The company participated in several city marathons throughout the year: “2024 HLA Wuxi Marathon”、 "HLA Jiangyin Fashion Xinqiao HalfMarathon" and "HLA Jiangyin Half Marathon", promoting the construction of the city's cultural brand and advocating a healthy lifestyle throughthe organization of high-standard events.

4 . 4SocialContribution

“Join Hands with Aerospace”On January 11, 2024, the "Gravity 1 (Yao 1)HLA" carrier rocket, sponsored by HLAGroup, successfully launched three remotesensing satellites into their designatedorbits in the sea area near Haiyang, Shan-

dong Province.

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

“‘More Warm’ 10 Years Anniversary, Move forward”

The "More Warm" charity program initiated by HLA Group in 2014, is celebrating its tenth anniver-sary. Over the past decade, HLA's "More Warm"program has reaching 24 provinces, municipalities,and autonomous regionsacross the country, delivering warmth and care to teachers and studentsinremote areas, including hundreds of thousands of custom-made down jackets.In 2024, thepublic welfare team of HLA Group revisited Hongtupo PrimarySchool in Yuzhong County,Lanzhou City, Gansu Province, donating downjackets and school supplies to the students. Withseveral "special volunteers"who had received donations a decade ago, organized a charity classmeeting and cultural activities centered around the theme "The Future Me."

The "More Warm" 10th Anniversary

The 2024 HLA Jiangyin "Cun BA"

The company is the sole sponsor of Jiangyin's "Cun BA" rural basketball tournament, injectingbrand power into grassroots sports and igniting residents' enthusiasm for sports and collectivehonor. The event covers multiple village and town units and attracts many citizens toparticipate, truly achieving the goal of "promoting unity and culture through sports" andcontributing to the construction of rural spiritual civilization.

While pursuing high-quality development, the company has always been actively engaged in nationalstrategies and social welfare undertakings with a high sense of social responsibility. The company isconstantly expanding its social in?uence in multiple dimensions such as sports, education and people'slivelihood, exerting the power of a national brand, and is committed to contributing to the public value ofsociety.In the future, the company will continue to expand the boundaries of social responsibility, leverage its brand strength, deepen cooperation with local govern-ments, public welfare organizations and cultural institutions, and continue to focus on key areas such as public welfare activities, healthy living, rural cultureand ecological protection, to promote the organic integration of corporate social value and commercial value, and contribute more to building a moreinclusive and sustainable social ecosystem.

5758

HLA GROUP 2024 SOCIAL RESPONSIBILITY REPORT

Sustainable DevelopmentManagement

Solid GovernanceBuilding the Foundation

for Development

Green ManufacturingForming a Low-carbonFuture

National QualityCreating a SustainableConsumption Ecosystem

People-OrientedAppendixBuilding a Better Society

Preface

Appendix: Report Indicators Index

This index table is compiled in accordance with the GRI standard, the "Chinese Enterprise SustainabilityReporting Guidelines (CASS-ESG 6.0) - Textile and Apparel Industry".

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

Sustainable GovernanceFramework and StrategyReport Sections and ContentsGRI MetricsCASS-ESG 6.0Report Page Numbers

Stakeholder Communication and

Materiality AssessmentGovernance Structure and

Operation MechanismShareholder Rights Protection andInvestor RelationsRisk ManagementBusiness EthicsResponding to Climate Change

Resource ConsumptionCircular Economy

Product Quality ControlCustomer rights protection(Information Security and Privacy Protection)Innovation-driven and IntellectualProperty ProtectionResponsible Supply ChainLabor Rights

Talent DevelopmentHealth and SafetySocial Contribution

Environmental ComplianceManagement

GRI 2-9, 2-12GRI 2-29GRI 2-9, 2-11GRI 2-29, 207-1GRI 2-23, 2-25GRI 205-1~205-3GRI 305-1~305-3GRI 302-1, 303-1GRI 301-1, 306-1, 306-2

GRI 416-1, 417-1GRI 418-1GRI 203-1~203-2GRI 308-1, 414-1GRI 401-1, 405-1, 406-1GRI 404-1, 404-2GRI 403-1, 403-2GRI 413-1, 203-1

GRI 306-3, 306-4

G1.1.1, G1.1.2G1.2.1G1.1.1, G1.1.3G2.1.1G2.1.3G2.2.1~G2.2.3E1.1~E1.3E3.1~E3.3E3.3

S3.1.1S3.3.2S2.1.1, S2.1.2S3.2.1S4.1~S4.2S4.3S4.4S1.1.1

E2.2~E2.3

Pages 11Pages 12~16Pages 21~22Pages 23~24Pages 25Pages 26Pages 29Pages 30Pages 31~32

Pages 35Pages 35~38Pages 39~43

Pages 44Pages 47~50Pages 51~53

Pages 54Pages 55~56

Pages 32

Sustainable Development Management

Solid Governance · Building the Foundation for Development

Green Manufacturing · Forming a Low-carbon Future

National Quality · Creating a Sustainable Consumption Ecosystem

People-Oriented · Building a Better Society

□Governance Structure and Operation Mechanism □Shareholder Protection and Investor Relations

□Risk Management □Business Ethics □Response to Climate Change □Resource Consumption

□Circular Economy □Environmental Compliance Management □Product Quality Control

□Customer Protection □Innovation-driven and Intellectual Property Protection□Responsible Supply Chain

□Labor Rights □Talent Development □Health and Safety □Social Contribution

4.Which topics are of the greatest concern to you? (Choose 3)

□Yes □No

5.Are all the information you are concerned about re?ected in this year's CSR report?

（What other information would you like to see）

6.Do you have any opinions or suggestions regarding our corporate social responsibility work?

Reader Feedback

Hello! Thank you very much for taking the time to read this report. In order to provide you and otherstakeholders with more valuable information on corporate social responsibility, please help us completethe feedback form and provide feedback to us in the following ways to help us further improveourmanagement of corporate social responsibility.Email: [e-mail] Address: Huashi Town, Jiangyin City, Jiangsu Province

Dear reader：

□Shareholders and Investors □Government and Regulatory Agencies □Employees

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

□Others

1.Which of the following types of stakeholders do you belong to?

□Excellent □Good □Average □Poor □Bad

2.Your overall assessment of the corporate social responsibility report for this year:

Disclosure: □Excellent □Good □Average □Poor □BadLayout Design: □Excellent □Good □Average □Poor □BadReadability: □Excellent □Good □Average □Poor □Bad

3.What do you think of this report: