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20 August 2025, Hong Kong – Leading PRC-based professional sportswear enterprise Xtep International Holdings Limited (the “Company”, together with its subsidiaries, the “Group”) (Stock code: 1368. HK), is pleased to announce that in the latest 2025 Environmental, Social, and Governance (“ESG”) Rating released by Morgan Stanley Capital International (“MSCI”), the global authoritative index provider, Xtep’s rating has been upgraded to “AA”, making it the first Chinese sportswear company to receive an “AA” rating. Xtep significantly improved its scores in five key assessment areas of the rating, namely product carbon footprint, supply chain labor standards, chemical safety, labor management and corporate governance, fully demonstrating the global market’s recognition of Xtep’s performance in ESG management.

MSCI is the world's leading provider of investment decision support tools and services, and one of the world's most authoritative ESG index rating agencies. Since its first rating in 2022, Xtep has continuously improved its rating by four levels over four years, highlighting its steady progress in ESG. In 2024, Xtep was upgraded to an “A” rating in the MSCI ESG Ratings assessment, becoming the first sportswear company in China to receive an “A” rating by then. In October 2024, Xtep officially released the “2030 ESG Strategic Framework” and announced its carbon neutrality goal, aiming to build a comprehensive model of sustainable development and “Become the Frontrunner in Sustainability”.

Xtep has achieved industry-leading results in implementing various ESG initiatives. In 2025, Xtep utilized 100% eco-friendly recycled polyester yarn to manufacture the official competition uniforms for the Xiamen Marathon. Each piece of apparel incorporated materials recycled from approximately 10 plastic bottles, setting a pioneering example for promoting ESG development in China’s sportswear industry. In the same year, Xtep officially became a signatory of the Zero Discharge of Hazardous Chemicals (“ZDHC”) organization and fully adopted its Restricted Substances List. Regarding product carbon footprint management, Xtep disclosed Scope 3 carbon emissions data in its 2024 ESG Report for the first time. This initiative not only demonstrates Xtep’s deep insight into and proactive response to carbon emissions within the supply chain, but also highlights its firm commitment to green transformation across the entire value chain. It drives the acceleration toward achieving the “Dual Carbon” goals of reducing carbon emissions from its own operations by 42% by 2030 and carbon neutrality by 2050.

Mr. Ding Shui Po, Chairman and Chief Executive Officer of Xtep International Holdings Limited, said, "Xtep is honored to once again receive an upgraded ESG rating from MSCI. This recognition not only affirms our sustainable development strategy, but also solidifies our position as a benchmark within China’s sportswear industry. Currently, under the guidance of the national ‘3060 Dual Carbon Goals’, the domestic sportswear industry is accelerating sustainable technological innovation. Sports brands are no longer just providers of athletic gear — We now represent a new consumer philosophy that is professional, rational, warm, and sustainable. Guided by our vision of ‘Becoming the Frontrunner in Sustainability’, Xtep will continue to start from product performance and run toward a greener lifestyle."