We have established a dedicated Water Management Team to carry out water conservation efforts in accordance with the requirements of local water resource authorities. A clear water consumption plan and annual water-saving targets have been set for each product line, with responsibilities allocated down to individual workshops and teams.

We strictly implement the "three simultaneous" and "four-in-place" policies for all new construction, renovation, and expansion projects to ensure water-saving measures are integrated from the start. Regular water balance testing is conducted in accordance with regulatory cycles.

Our water consumption per unit of fabric has reached Grade A, the highest international benchmark, earning the International Water-Saving Product Certification and recognition as a Water-Saving Enterprise of Jiangsu Province.

The Group continues to invest heavily in environmental infrastructure, having built one of the most advanced in-house wastewater treatment plants in China. Utilizing an MBR + RO membrane process, we have developed a comprehensive treatment system capable of deep processing dyeing wastewater, with separate solutions for high- and low-concentration effluents.

Through ongoing process optimization, our reclaimed water reuse rate has steadily increased—from 55% to 85%. Looking ahead, the Group will continue upgrading its wastewater treatment systems, striving to achieve reclaimed water reuse standards at the forefront of both national and global benchmarks.

In the dyeing process, we have adopted innovative thermal energy recovery technologies to enhance resource efficiency. High-temperature wastewater (70–80°C) generated during dyeing is passed through a heat exchange system to transfer energy: on one hand, the wastewater is cooled to 45°C before entering the wastewater treatment station, significantly reducing the difficulty and energy required for subsequent processing; on the other hand, ambient-temperature water in the workshop is preheated to 50°C and supplied to production machines, effectively cutting steam consumption. This system alone enables annual steam savings of over 9,000 tons and reduces costs by more than RMB 2.5 million.

In parallel, we have established a centralized steam condensate recovery system. Using high-head, low-flow pumps, high-temperature condensate water (approximately 80°C) is directly circulated into the production hot water pipeline for reuse. This initiative saves over 6,000 tons of steam and more than RMB 1.5 million annually, while also conserving approximately 65,000 tons of water. Together, these two condensate reuse solutions enable the efficient and integrated utilization of both energy and water resources.

By innovating dyeing technology, the liquor ratio has been optimized from 1:8 and 1:15 to 1:5, achieving a water saving of 2.4 tons per dyeing vat. This advancement has led to annual water savings exceeding 60,000 tons and contributed to a 5.5% reduction in overall water consumption compared to 2021. The initiative highlights the effectiveness of technological upgrades and resource management in driving sustainable manufacturing.

The Group has renovated the artificial river on the west side of the industrial park and built a multifunctional rainwater collection and purification system. This initiative not only eliminates the risk of flooding in low-lying areas during heavy rainfall but also enables the efficient recovery of rainwater and cooling water for purified reuse in production—achieving over 200,000 tons of recycled water annually. In parallel, we have innovated our water treatment process by channeling water from external sources into the artificial river for buffering, settling, and purification before transferring it to flocculation tanks for advanced treatment. This process has significantly improved water quality and increased the purification yield from 75% to 92%, resulting in annual water savings of more than 120,000 tons. Together, these two major initiatives form a benchmark model for industrial water recycling and sustainable resource management.

We have carried out a green upgrade of key energy-consuming equipment at our wastewater treatment facility by replacing conventional aeration blowers with high-efficiency magnetic levitation blowers. This upgrade has reduced energy consumption per unit by over 30%. Looking ahead, we will continue to optimize and upgrade our environmental protection facilities, leveraging technological innovation to further improve our energy structure.

The Group has implemented an annual green energy procurement plan aimed at significantly reducing total greenhouse gas emissions. Each year, we plan to purchase 40 million kilowatt-hours of green energy, cutting reliance on traditional energy sources and reducing greenhouse gas emissions by the equivalent of 4,916 tons of standard coal annually.