Media

Hong Kong, 20 July 2023 – Leading PRC-based professional sportswear enterprise Xtep International Holdings Limited (“Xtep” or the “Company”, together with its subsidiaries, the “Group”) (Stock code: 1368. HK) is pleased to note that the Company’s MSCI ESG rating has been upgraded to “BBB” from “BB” in the latest annual review by Morgan Stanley Capital International (“MSCI”), a leading international indexing agency. This achievement reflects the Company’s strong ESG performance.

The MSCI ESG rating is widely recognized as a highly credible ESG rating system that assesses a company’s sustainability performance based on a set of scientifically rigorous core indicators. Xtep first received a "BB" rating from MSCI in June 2022 and has now been upgraded to "BBB" just one year later, demonstrating the Company's outstanding progress in its environmental, social and governance practices.

As a pioneer and forerunner in the field of ESG, Xtep has integrated sustainable development governance into all aspects of its corporate management and operations. As early as 2016, Xtep published its first ESG report, becoming one of the earliest companies to plan for ESG governance. Under the guidance of the "Fifth Five-Year Plan" and with the continuous optimization of its corporate operations, in 2021, Xtep established a Sustainable Development Committee at the board level, incorporating environmental, social, and governance factors into Xtep's organizational management system. The Company’s "10-Year Sustainable Development Plan" focuses on three key issues: supply chain management, environmental protection, and social responsibility, with a holistic deployment approach covering 12 themes including supplier assessment, sustainable product innovation, water management, waste management, sports promotion, and social investment.

Mr. Ding Shui Po, Chairman and Chief Executive Officer of Xtep International Holdings Limited, said, “Xtep is honored to have been upgraded by MSCI, which is a strong recognition of the Company's efforts in corporate governance and sustainable development. Looking ahead, Xtep will adhere to its long-term commitment to sustainable development, continuously improve its ESG management under the existing framework, and further enhance its ESG governance standard. Xtep aims to demonstrate its unwavering commitment to sustainable development and strong corporate governance ability to both investors and consumers by taking practical actions to fulfil its social responsibilities and contribute to the sustainable and high-quality development of the Company.”

As ESG becomes an increasingly crucial investment strategy in the capital markets, ESG ratings have formed an important basis for assessing the investment value of listed companies. Higher ESG ratings reflect more robust business management and better governance practices, which also lead to broader market recognition and stronger investor preference. As an ESG evaluation system well recognized by global investment institutions, the MSCI ESG Rating and its results are widely applied by both domestic and international investors in their investment decisions.