Environment

The following covers our performance in GHG emissions and environment protection in 2019:

3 We adopt the “Equity Ratio Method” to adjust the calculation of the overall GHG emissions based on our shareholding ratios of each unit.

2019 is the 5th consecutive year for us to disclose the performance of GHG emissions. Overall, as our business was in the expansion stage, the overall revenue has also increased. However, the growth rate of carbon emissions was under control and lower than the growth rate in revenue, proving our executed environmental policy was effective.

4 Only includes the relevant data of motor vehicles in the office building of Shanghai.

In respect of energy use performance, our electricity usage increased 29.6% because of the expansion of self-operating stores of FILA and DESCENTE. in 2019, Quanzhou Material (PRC) used more steam and less natural gas due to more favorable prices on steam, affecting the overall consumption performance on steam and natural gas. in 2019, the overall steam increased 24.2% and natural gas decreased 36.9% respectively. Furthermore, we haven’t used coal for the second consecutive year.

5 Only covers the relevant data of the Group’s Athletic (PRC) factory and Henan Material (PRC). The disclosure scope will be further expanded when the data collection of other factories becomes more sophisticated.

In respect of volume of waste production, due to the improvement of manufacturing technology, the materials used and production process adopted are basically safe and non-hazardous. According to our revenue scale, our waste production remained at a low level, the amount of hazardous waste generated is not significant. in 2019, our hazardous wastes were mainly waste oil and sludge. They would be stored temporarily in the specified hazardous storage room and collected regularly by qualified recyclers.