Dr YEN Gordon The Manufacturer s Perspective Fountain Set

Dr. YEN Gordon The Manufacturer’s Perspective Fountain Set (Holdings) Limited

• Founded in 1969, listed on HKEX in 1988 • One of the world's largest manufacturers of circular knitted fabrics • 2009 annual worldwide sales reached approx US$700 million • Staff force over 14, 000 worldwide

Cotton Spinners China, India, Indonesia, Pakistan, Taiwan, Others Buyers / Retailers Fabric Producer (FSHL) United States, European Union, Asia China, Sri Lanka Garments Producers Latin America, China, Middle East, SE Asia, W Asia, Others

FSHL’s Holistic View on Sustainability • US, EU and Asia customers including China become more conscious on sustainability, whether on products or production practices • We believe sustainability includes – – Environmental protection Social responsibility Stakeholder relationship Long term competitiveness of business Sustainable Fashion Business Alliance

Recognition Hang Seng Pearl River Delta Environmental Category Award Water Management WWF LCMP Certified Label Award 2010 for Dongguan Shatin Lake Side Certificate of Appreciation of Cleaner Production by HK Prod Council

Oeko-Rex® Standard 100 Certificate China Great Wall Quality Assurance Centre Certificate of Conformity of Environment Management System Certification

Fairtrade Certificate ISO 14001: 2004

Impact of Sustainable Practices 1 No change in Product + Same or Lower Cost 2 No change in Product + Higher Cost 3 Product Change + Same or Lower Cost 4 Product Change + Higher Cost Sustainable Fashion Business Alliance

REACH Registration, Evaluation, Authorisation and Restriction of Chemical substances • One of the first to fully implement • An example of level 2 effort – no change in products and increase in cost • EC Regulation – For chemicals and their safe use in producing consumer products – Protection of human health and the environment – Identification of the intrinsic properties of chemical substances – Both upstream raw materials and production process related Sustainable Fashion Business Alliance

Challenges in Measuring Environmental Sustainability • Lack of standard • Complexity in carbon footprint • Scope of what should be included and methods of measurement Sustainable Fashion Business Alliance