We are continually exploring the use of organic and recycled materials in our production processes, prioritizing recyclable options like replacing petrochemical-based raw materials with RPE biomaterials and incorporating plant-based PLA fabrics and yarns. Additionally, we are increasingly integrating natural organic materials into our products. 

In terms of material selection, we exclusively source materials certified by reputable standards, including the Global Organic Textile Standard (GOTS), Organic Content Standard (OCS), Global Recycled Standard (GRS), Responsible Wool Standard (RWS), and Responsible Mohair Standard (RMS).

We strictly adhere to these certifications, ensuring the procurement and use of organic and recycled materials are in full compliance with their guidelines. Each batch is accompanied by a transaction certificate (TC) to guarantee the integrity of the raw materials. Our organic materials are grown sustainably from seed selection through textile production, with each step verifiable on the official certification body's website. Recycled materials are sourced from a variety of post-consumer and post-industrial waste, including used PET bottles, waste cotton, fabric scraps, discarded fishing nets, carpets, and old acrylic products.

As part of our ongoing commitment to sustainability, we have significantly reduced our use of perfluorinated chemicals (PFCs) in our hat production. PFCs are commonly used in textiles for their water- and stain-repellent properties, but they are harmful to the environment and human health due to their persistence in nature. In response to these concerns, we have made it a priority to minimize or eliminate PFCs from our products. 

Many of our hats now feature alternatives to PFCs, with some of our designs being completely free from these chemicals. We have invested in sustainable, non-toxic treatments that deliver similar performance benefits, such as water resistance and durability, without compromising the environment or safety. 

Our goal is to phase out PFCs entirely across all our products. We are continuously exploring new, innovative materials and manufacturing processes that align with our commitment to reducing our environmental impact. We are proud to offer a growing range of hats that are not only functional and stylish but also environmentally responsible. By eliminating PFCs, we are taking an important step towards creating products that are both high-performing and safe for both the planet and our customers.

Animal welfare is a fundamental consideration in our hat manufacturing process. We are committed to ensuring that all materials sourced from animals are obtained in a manner that prioritizes the well-being of the animals involved. This includes adhering to strict ethical standards in sourcing natural fibers, such as wool and down, and working with suppliers who share our commitment to animal welfare. 

We use materials like RWS (Responsible Wool Standard)-certified merino wool, which ensures that wool is sourced from farms that follow ethical practices, including proper animal care and humane treatment.

By partnering with suppliers who maintain high standards of animal welfare, we can confidently offer products that not only meet our quality expectations but also reflect our core values of responsibility and respect for all living creatures. We are dedicated to continuous improvement in our sourcing practices, and we will always prioritize animal welfare as a key component of our commitment to sustainability and ethical production.

By optimizing the final production process during the design phase, we can reduce scrap rates, shorten production cycles, and improve overall efficiency. This includes refining manufacturing steps, optimizing material usage, and minimizing resource waste.

Design Optimization: We take a holistic approach, considering the entire product lifecycle—manufacturing, use, and disposal. The design is optimized to reduce energy consumption, waste, and pollution.

Production Process Optimization: We focus on efficiency by minimizing material losses, shortening production time, and identifying opportunities to enhance overall productivity.

Circular Economy Principles: We prioritize the recyclability of our products, designing repairable, upgradeable, or reusable components to extend product life and reduce waste.

To reduce the frequency of tape and carton usage, we have implemented the following measures:

Minimize Packaging Materials: We have adjusted packaging guidelines to minimize the use of tape and cartons.

Simplify Packaging Design: When designing cartons, we carefully consider the size and shape of the product to optimize material use. This thoughtful design reduces the volume and weight of packaging, which not only lowers resource consumption but also reduces transportation costs.

Reuse of Waste Cartons: We promote the internal reuse of packaging cartons to further reduce the need for new packaging materials.

To reduce dependence on traditional energy sources and lower carbon emissions, we have installed solar photovoltaic systems to generate clean electricity.

In 2022, FOREMOST HEADWEARS installed a 1,000 square meter photovoltaic power generation system, converting solar energy into electricity and adding renewable power to the company’s energy supply. This move has significantly reduced energy consumption and minimized reliance on conventional energy sources.

Similarly, KMAX took action in 2022 by installing a 7,000 square meter photovoltaic system, providing even more clean energy. This expansion not only cuts down on the use of traditional energy but also reduces energy costs, contributing positively to environmental protection. In 2023, FOREMOST HEADWEARS further strengthened its commitment to sustainability by installing a 2,000 square meter optimized photovoltaic system, enhancing its clean energy capacity and supporting the company’s long-term environmental and sustainable development goals.

Additionally, we are committed to reducing wastewater pollution through advanced wastewater treatment systems, safeguarding vital freshwater resources such as groundwater and rivers.

We continue to upgrade factory equipment, replacing outdated machinery with energy-efficient models. Modern equipment offers higher energy utilization and more precise control, helping reduce energy consumption, lower greenhouse gas emissions, and save costs.

We also optimize the production process to reduce energy waste and unnecessary consumption. This includes streamlining equipment usage, adjusting production line layouts, and improving planning and scheduling, all of which enhance production efficiency and further decrease energy use.

Lastly, we implement effective inventory management practices—such as regular inspections, rotation, and proper storage—to minimize waste and reduce environmental pollution. This approach not only improves efficiency and reduces costs but also strengthens our long-term competitiveness in the marketplace.

We are proud to announce that we have successfully passed the Business Social Compliance Initiative (BSCI) certification for our hat manufacturing processes. BSCI is a widely recognized standard that ensures ethical business practices, social responsibility, and fair working conditions across global supply chains. By meeting the rigorous requirements of the BSCI, we demonstrate our commitment to providing a safe, fair, and respectful workplace for all individuals involved in our production process.

This certification reflects our ongoing dedication to maintaining high standards in labor rights, health and safety, environmental sustainability, and ethical business conduct. It also reinforces our commitment to transparency and continuous improvement in our supply chain management. Passing the BSCI audit ensures that we meet international best practices and guarantees that our hat manufacturing is conducted in a socially responsible and sustainable manner, aligning with our values of integrity and respect for workers' rights. This achievement further strengthens our efforts to deliver quality products while supporting positive social change throughout our operations.

Sustainability is a core value that guides our operations across the globe. With five factories located in Vietnam, Cambodia, and China, we are dedicated to minimizing our environmental footprint and promoting responsible manufacturing practices at every stage of production. Each of our factories is designed with sustainability in mind, utilizing energy-efficient systems, reducing waste, and adhering to strict environmental regulations. We prioritize the use of sustainable materials and continuously seek innovative solutions to reduce resource consumption and carbon emissions.

By strategically locating our facilities in these regions, we not only optimize our production capacity but also ensure that we support local communities and economies while maintaining high environmental and ethical standards. Our commitment to sustainability extends beyond just production, as we are continuously improving our processes to align with global sustainability goals, fostering a positive impact on both the environment and society. Through these efforts, we aim to lead by example in creating a more sustainable and responsible manufacturing ecosystem.

In 2023, the company's safety management system operated efficiently and effectively, maintaining an excellent safety record and largely achieving its safety goals. Notably, there were zero minor work-related injuries, zero fire or explosion incidents, zero confined space accidents, and a 100% compliance rate for the rectification of identified hazards.

To ensure the ongoing health and safety of our employees, the company has established comprehensive management systems, including the "Occupational Disease Prevention and Control Responsibility System," as well as regular occupational safety training and lectures.

Additionally, the company provides energy-saving insurance for all employees, with coverage ranging from 100,000 to 500,000. Each year, we also organize a collective physical examination for our staff, further reinforcing our commitment to their well-being and occupational safety.

We are committed to providing comprehensive employee benefits that support both the well-being and personal development of our team members. Our employee benefits package includes a range of social security and provident fund plans to ensure financial security. We offer high temperature and rent subsidies to alleviate daily expenses, along with transportation subsidies and employee meals to enhance convenience and comfort at work. 

In recognition of important holidays, we provide gifts or cash for occasions such as Women’s Day, Children’s Day, Double Ninth Festival, Mid-Autumn Festival, and the Spring Festival, showing our appreciation for our employees’ hard work and dedication. We also offer special caring benefits, including mutual aid funds, love funds, and a wedding fund, along with rewards for children entering university and thanks for parents.

Long-term service is valued, and we provide benefits for company tenure, employee birthdays, and more. Additionally, employees have access to a library, car maintenance insurance, housing assistance, car purchase subsidies, and paid personal and sick leave. We believe in promoting a healthy work-life balance, so we also offer team building opportunities, group travel, and other activities that foster camaraderie and personal growth. These benefits reflect our commitment to a supportive, enriching work environment that nurtures both the professional and personal lives of our employees.

We have organized several themed activities to show our care and support for sanitation workers, inviting them to the museum for a sewing session to create warm hats and enjoy glutinous rice balls. Additionally, we visited Chongchuan Sanitation, where we donated 550 knitted hats, gloves, and other warm items. Regular community charity initiatives are an important part of our mission. In December 2022, we donated over 1,000 warm hats to vulnerable groups, including the elderly and sanitation workers, to provide them with comfort and support during the winter months.

Our outreach extends to visiting local care facilities such as Shibei Rehabilitation Hospital and Xingren Nursing Home, where we donated 317 sets of hats and shawls and 75 sets of hats and scarves. We also organized winter care activities for the elderly, ensuring they stayed warm and well cared for. At Nantong Wanfu Welfare Home, we prepared "three winter treasures"—scarves, hats, and gloves—and personally assisted the elderly in putting on these items, distributing loving gifts to brighten their winter. These activities are part of our ongoing commitment to community well-being and support for those in need.

We will continue to host the special exhibition "Collecting Today for the Future 101 Series," which not only enhances the vibrancy of the museum but also connects the public with fashion, art, and culture. We regularly organize immersive, interactive experiences, cross-border collaborations, and exchanges, as well as distinctive exhibitions, including art shows, photography exhibitions, car displays, and other thought-provoking showcases. Additionally, we host conferences, discussions, and research activities that enrich the community with diverse and meaningful content. Through these efforts, we aim to strengthen the cultural heritage of Nantong, fostering both material and spiritual development while cultivating a deeper cultural confidence and appreciation.