Environmental Policies and Governance

We strictly adhere to the “Environmental Protection Law of the People’s Republic of China” and the “Environmental Impact Assessment Law of the People’s Republic of China”. We have developed policies and system documents related to environmental management, such as the “Environmental/Occupational Health and Safety Manual” and the “Hazardous Waste Pollution Prevention and Control Responsibility System”. These policies require regular reviews of the environmental management system of our self-operated facilities, and the formulation of environmental management policies. Simultaneously, we conduct annual internal and external audits of the environmental management systems of self-operated factories to ensure the effective implementation of the environmental management system. During the financial year, we not incur significant fines or penalties related to environmental or ecological matters.

Low-Carbon Production and Operations

We conduct carbon emission assessments in the production and operational processes, actively promote the optimization of energy structures, consistently advance energy-saving and emission reduction initiatives, and strengthen awareness of low-carbon practices, to effectively facilitate the transition to a low-carbon operation.

Energy Management

We have established regulations such as the “Regulations on the Management of Energy Conservation and Consumption Reduction”, “Energy Operation Control Program”, “Energy Non-Conformity, Corrective Actions, and Improvement Control Program”, and “Energy Management Manual”. These regulations specify the operation and maintenance activities for the identified major energyuse systems to ensure their proper functioning under specified conditions, and take corrective measures against actual or potential instances of unreasonable energy use or consumption. During the financial year, Shangqiu Anta Shoes Co., Ltd. invited a third-party organization to conduct an energy diagnosis and provide a report to facilitate energy-saving and emission reduction efforts.

Conducting Carbon Emissions Assessment

In cooperation with external consulting organization, we conducted carbon footprint and GHG emissions assessment of all self-operated facilities in accordance with ISO 14064- 1:2008. Based on the results of the assessment, we develop carbon reduction plans for all self-operated facilities.

Carbon Reduction in Production Processes

We actively respond to energy conservation and emission reduction in the production process, formulating the “Energy Saving and Consumption Reduction Plan” and promoting its implementation. Through conducting carbon emission and GHG emission assessment for our self-operated factories, we tailor specific energy-saving plans based on the assessment results. We review existing emission reduction measures and design and evaluate further actions, such as electricity monitoring and the development of decentralized photovoltaic projects. Xiamen ANTA Industrial Co., Ltd. has set energy-saving program and goals for the next year based on energy consumption, carbon analysis and the actual production situation during the financial year. Through energy inspections and other means, we regularly and promptly follow up on energy-saving improvement measures and suggestions from various departments to implement carbon reduction initiatives effectively.

Carbon Reduction in Logistics

We are continuously exploring various ways to achieve green logistics, and are committed to reducing the carbon footprint generated during the distribution of raw materials and products. We have established internal policies, such as the “Regulations on the Management of Energy Conservation and Consumption Reduction” and the “Standardization Management Specifications for Production Packaging Boxes”, with the aim of building a green logistics system. We also linked the progress of energy conservation and emission reduction targets in logistics to the performance of relevant personnel to promote carbon reduction in the logistics sector with greater efficiency.

We have planned warehouse and network layout optimization to streamline transportation routes. Electric vehicle city distribution fleets have been established in locations such as Quanzhou, Jinjiang, and Xiamen, China to reduce carbon emissions during the transportation process. Additionally, a GHG assessment has been conducted for Fujian ANTA Logistics Information Technology Co., Ltd. and transportation processes. After completing the assessment, internal and external audits were conducted. Based on the analysis report, carbon reduction program with GHG emission reduction strategies and implementation plans specified were formulated for the logistics and distribution centers. During the financial year, our logistics center has officially adopted solar energy as our first project. We have invested over RMB10 million and expected an annual electricity generation of approximately 4,000 megawatt-hour. This will result in a reduction of over 2,400 tons of carbon dioxide emissions, providing green energy for our logistics center.

Energy Saving and Carbon Reduction in Retail Stores

We prioritize energy saving and emissions reduction in our operational environment, implementing program involving waste recycling and utilization, the R&D of environmentfriendly tools, store energy consumption reduction, and adoption of green construction practices to create lowcarbon stores.

Energy Conservation and Carbon Reduction in Office

We formulated the “Office Management Policy” and “Central Air Conditioning Turn-On/Off Control Standards”. Specific carbon reduction measures include monitoring and recording the use of electricity in office areas and the usage patterns of air conditioning during summer. Additionally, we have replaced screen printing with fully automatic printing equipment and manage air conditioning, lighting, and other devices to use energy resources rationally and enhance energy efficiency. During the financial year, we assessed the GHG emissions from the office building in Jinjiang, China and analyzed the results to develop a new annual emission reduction program. This includes continuing to establish standards for air conditioning temperatures that can be open to ensure no energy is wasted.