Sustainability

Environmental Protection

Our Vision

As one of the leading sportswear brands in China, it is our responsibility to demonstrate corporate citizenship and minimize our impact to the environment. To limit our environmental impact, we mainly seek to improve our resource efficiency and reduce our emissions to the environment. We are also committed to complying with all applicable environmental laws and regulations in the locality where we conduct our business.

As part of our environmental management effort, we have successfully implemented an ISO14001-certified environmental management system in all of our production sites since 2010. Under the environmental management system, we have the goal of "zero chemical and explosion incidents" and in full compliance with laws regulations in relation to hazardous waste disposal and noise emissions. To reflect changes in the organizational structure of our factories, we reviewed and updated accordingly our internal policies on the management of environmental incidents, which covers the management, reporting, investigation, follow-up and evaluation of environmental incidents for the prevention of possible incidents.

Improving Resource Efficiency

To improve the resource efficiency of our production, we have adopted various measures and initiatives to conserve energy, water and other natural resources along the production chain.

Use of energy

The Group's major energy consumption consists of electricity, natural gas for boilers and diesel for backup generators. Echoing the PRC government's plan on pursuing green development, we continued to improve our energy efficiency during the Year.

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Use of Electricity (in kWh) 20171 2018 % Change
Fujian Quanzhou main Factory 14,702,190 14,604,590 -1%
Fujian Jinjiang main Factory 2,914,000 2,852,100 -2%
Anhui Factory 4,248,260 4,595,716 +8%
Hunan Factory 2,103,453 2,814,400 +34%2
Fujian Quanzhou Koling Factory 882,360 604,200 -32%3
Annual Total 24,850,263 25,471,006 +3%
Use of Natural Gas (in m3) 2017 2018 % Change
Total 68,748 69,045 +0.4%
Use of Diesel (in kg) 2017 2018 % Change
Total 3,238 2,781 -14%
  • 12017 figures have been restated to align with the current the operation and data collection practice.
  • 2The increase is mainly due to: (i) the introduction of a new production line in February 2018; and (ii) the installation 27 air-conditioning units and 300 ceiling fans in Hunan Factory.
  • 3Electricity consumption of the research and development building at the headquarters was included in Koling Factory's 2017 figure, and was excluded in the 2018 figure.

Improving energy efficiency

In 2017, we have upgraded the pipeline system at our Quanzhou production site, which improved the efficiency and stability of our energy and water supply. In 2018, we have switched to 100% natural gas for powering the boilers at our production sites.

We had also invested on automation of our production lines and computer-controlled sewing machines in 2017. The computerized production have since improved our production efficiency and facilitates better management of our production-related data, hence allowing us to make more reliable forecast to promote efficient use of our resources.

This Year, we continue to improve our energy efficiency through improvements in the hardware of our factories. To further reduce our energy consumption, we had also been replacing our existing light fixtures with LED models which are more energy efficient. During the Year, we have completed the replacement of all existing light fixtures at our factories and workshops.

The behaviour of our employees also plays an important role in reducing our energy consumption. We have established clear energy-saving guidelines and as part of our employee education all employees are required to learn about the guidelines. We also make use of internal communication materials like posters to remind our employees of the Group's latest environmental policies and measures.

Use of water

During the production processes, the majority of water consumption arises from the laundry of finished garments and the use of water for boilers. Our dormitories also contributes to a major part of our water consumption. We strive to improve efficiency in both our factories and dormitories through several measures including process improvement, and water recycling and reuse.

Improving water usage efficiency

We have been contributing to Quanzhou City's initiatives to become a National Water Saving City since 2016, and had replaced all water fixtures with sensor-type ones to prevent wastage. Water-saving guidelines were established to provide employees with water saving tips and encourage staffs to implement water saving initiatives in daily operations. Similar to our energy-saving guidelines, we communicate our water-saving guidelines along with the routine safety education to all employees.

To encourage water conservation at our dormitories, the user-pays principle is adopted and employees have to pay for their water use per their actual consumption. By linking consumption to monetary incentives, it motivates our employees in adjusting their consumption behaviour and prevent unnecessary wastage of water.

Use of Water (in m3) 20174 2018 % Change
Fujian Quanzhou main Factory 294,227 323,665 +10%
Fujian Jinjiang main Factory 68,707 60,482 -12%
Anhui Factory 11,834 24,160 +104%5
Hunan Factory 26,996 30,106 +12%
Fujian Quanzhou Koling Factory 21,857 17,437 -20%6
Annual Total 423,621 455,850 +8%
  • 42017 figures have been restated to align with the current the operation and data collection practice.
  • 5The increase was due to the installation of water curtain air-conditioning at the facility in 2018.
  • 6There was a malfunction of water meter for two months in 2018, resulting in lower recorded water consumption comparing to 2017.

Emissions Control

Greenhouse gas emissions

The Group recognises the importance of greenhouse gas ("GHG") gas as a global issue. We understand that the use of energy is a significant source of greenhouse gas emission from our operations, and seek to reduce our GHG emissions through various initiatives and hardware improvements.

Since 2015, our supplier factories and own factories have replaced the existing coal and diesel boilers with natural gas boilers as per government request to improve our energy efficiency and to reduce GHG emissions. We are setting up a system to monitor the carbon emission for new suppliers, and will also look into assessing our own GHG emission in the next few years. For more information on the energy-efficiency measures applied, please refer to section 5.2 "Use of Energy".

Air emissions

During our manufacturing processes, the major sources of air emissions were from the fuel use of boilers and back-up generators in the production facilities. To reduce air emissions, we had switched from diesel to natural gas for powering our boilers. During the Year, we had also invested over RMB2 million to upgrade the exhaust system of our forming machines, in which exhaust gas would be treated with UV light and activated carbon before emission, reducing VOC and other chemical contents in the exhaust gas.

Wastewater discharge

Our production operations generate an insignificant amount of wastewater, mainly from the laundry of finished products, boilers and domestic sources like our offices and dormitories. In handling the wastewater, we follow local wastewater discharge requirements and discharge our wastewater to the municipal sewage pipelines.

Waste management

The Group has established detailed management systems for the storage and disposal of wastes as well as emergency protocols to facilitate proper handling of hazardous waste. We strictly comply with local government laws and regulations regarding waste treatments.

General waste

In managing general waste, we uphold the principles of reduce, reuse and recycle throughout the different functions of the Group. All recyclable wastes are categorized and recycled centrally. Other general wastes from our operations are being properly disposed of in accordance to local requirements. External contractors were appointed for proper handling and disposal of general non-recyclable waste.

We continuously optimizes our production process in order to better utilise the raw garment materials and reducing material wastages. Rags and leather are collected by recyclers periodically and we try to minimize the disposal of these raw materials of as wastes.

To reduce wastes generated from the use of packaging materials, we have introduced shoe boxes made with recycled paper, and attached handles to the boxes to save the need for shopping bags. We will continue to optimize the designs and materials used for our packaging to reduce waste generation.

Hazardous waste

Our production facilities are principally engaged in the cutting, sewing, finishing and packaging of garments. Majority of raw materials are purchased from qualified fabric suppliers screened by our supplier code. Hazardous wastes are managed from the very beginning of our production chain.

The most common hazardous wastes we produce during the manufacturing process are used industrial glues and its containers, though in limited quantity. We source all of our glues from qualified international suppliers and all the glues we use has passed relevant environmental testings for hazardous chemicals and odour.

Regarding the limited hazardous waste generated, we have appointed qualified third-party companies for proper handling and disposal, ensuring that the process is in compliance with the local laws and regulations on hazardous waste disposal.

Regulatory compliance

During the Year, we were not aware of any material non-compliance with laws and regulations relating to environmental emissions.

The Environment and Natural Resources

The significant environmental issues faced in our businesses in relation to emissions and the use of resources were disclosed in the above sections.

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