Corporate Brochure - EN

Luenthai an

Extraordinary company

Rooms 1001-1005,10/F, Nanyang Plaza, 57 Hung To Road, Kwun Tong, Kowloon, Hong Kong SAR Tel.: (+852) 2193-3800 www.luenthai.com

MESSAGE FROM THE FOUNDER From the first Luen Thai garment facility in Saipan, Micronesia, which I founded with my sons Henry, Willie, Raymond, and Jerry in 1983, we have been on a steady rise to becoming a truly global company. Throughout this growth, however, many good things have remained at the heart of the company.

Staying true to our roots. What we are today is the result of our hard work and dedication. We will continue to build upon these principles as we look forward to more eXtraOrdinary years.

Heritage, our foundation for the future. Luen Thai was founded on the values of integrity, trustworthiness, dedication, and diligence. These have shaped and driven us throughout our journey and will always be at the core of our personal and collective work, as we endeavor to create a stronger future every day.

Fostering a benevolent spirit. I want to give back to the community wherever our business goes.

This has always been my aspiration even when Luen Thai was still a fledgling company. More than three decades thereafter, we continue to outdo ourselves and find ways to partner and collaborate with those who share this passion.

DR. TAN SIU LIN Honorary Life Chairman

MESSAGE FROM THE CHAIRMAN In February 2017, Shangtex (Hong Kong) Limited became the major shareholder of Luen Thai. This partnership has helped us to further strengthen our capability in design, development, and manufacturing of apparel and accessories, enabling us to produce high quality products with lowered costs. Luen Thai’s presence in strategic locations such as Philippines, Cambodia, Vietnam, Thailand, Myanmar, India, Bangladesh, and Indonesia has helped Shangtex increase its exposure in Asia, and also allowed us to gain more access to the global market.

All these would not be possible without the efforts, counsel, and dedication of our Board and Management Team in realizing our strategies that sustain our growth. I also credit our more than 55,000 employees for their invaluable service, commitment, and diligence in delivering our goals.

These are exciting times for the company.

We look forward to more partnerships and collaborations in the years ahead.

SHEN YAO QING Chairman

MESSAGE FROM THE CEO

Our culture, our people, and our vision of the future make us an eXtraOrdinary company. What started as a humble family enterprise in the 1980s has grown into a professional enterprise family. Today, we are a trusted partner of international brands and one of the leading fashion and lifestyle apparel and accessories manufacturers in the world.

As we take part in an increasingly competitive market that is becoming more connected than ever where anyone can manufacture anything, anywhere, and ship fast to any location, Luen Thai is ready to face the challenges and opportunities with our digitalization and sustainability strategies.

It is our mission at Luen Thai to have the world’s first paperless apparel and accessories factory, which is not only aligned with our efforts in providing eXtraOrdinary CARE for the environment, but also with our digitalization strategy of building smart “paperless” digital supply chains with our customer and supplier partners.

As a CEO-Partner, I promote equality in gender orientation, race, and age (GRA), beginning with my Management Board down to every level in the organization.

I will continue to leverage on the experience of my executives while promoting mentorship by the youth.

I look forward to expanding our partnership with the rest of our stakeholders—customers, suppliers, and community partners—through an open feedback system with proper governance.

All of these I am committed to lead and collaborate with everyone in achieving our vision of Sustainable Shared Success through Reinvention.

I invite you to get to know us better and explore ways on how we can create an eXtraOrdinary future together.

RAYMOND TAN Chief Executive Officer

OUR VISION

Luen Thai believes that synergy resulting from working towards sustainable shared success with our partners—shareholders, customers, suppliers, our people, and our communities—will create more positive and long-lasting benefits to the end-consumers, the industry, and the world. Reinvention is also at the forefront, focusing on Quality, Speed, Flexibility, Sustainability, and Cost.

OUR SUSTAINABILITY

VISION

Giving eXtraOrdinary CARE to our people, our communities, and the environment is in the heart of our business strategy. Our desire to care is inspired by our culture of excellence and of giving back.

Luen Thai’s journey to sustainability all began soon after its founding in 1983.

In 2009, we launched iServe. iGiveBack that consolidated all our community and charity work.

Inspired by the introduction of a new corporate culture “Be XO Daily,” our community work has evolved to an all-encompassing sustainability strategy for our people, our community, and the environment, which we call XO CARE (eXtraOrdinary CARE).

Sustainability goes beyond economic prosperity.

We show eXtraOrdinary CARE for our people, our community, and the environment, and we try to become better daily.

PEOPLE, COMMUNITY, AND ENVIRONMENT ARE INTERCONNECTED

XO CARE FOR OUR

PEOPLE

Our strategy is to focus on Happy People and the feeling that we are the Best Place to Work.

Key to achieving our people goal is engagement.

We implement the eNPS (Employee Net Promoters Score) on a regular basis and try to give meaning to the results believing that this is a good barometer of happiness.

Equally important is our focus on our Line Leaders through an exclusively designed program called XO LEAD. We believe that nurturing Line Leaders will create a multiplier effect for eXtraOrdinary CARE, not just for them but also for everyone entrusted to their care.

GRA

E Q UA L I T Y

Equality in gender orientation, race, and age, is also promoted in the Company. From the leadership level down, we give high importance in diversity and inclusion. We also believe in the positive impact of the right mix of experience and youth and that both can learn and leverage from each other’s strengths. Under our XO CARE for People, we espouse Mentorship by the Youth and promote learning with and from the young.

DEMOGRAPHICS OF THE MANAGEMENT BOARD GENDER

AGE ABOVE 60 18%

MALE 65% FEMALE 35%

NATIONALITY U.S.A CANADA

51-60 58% 41-50 23%

GERMANY CHINA

U.K. MEXICO

INDIA

PHILIPPINES

BELOW 40 1% AUSTRALIA

Luen Thai cares for its people and believes that their well-being and happiness are the foundation of excellent services and great products.

XO CARE FOR OUR

COMMUNITY The company places utmost focus and priority in helping children become eXtraOrdinary KIDS. Various development programs provide kids with access to sports such as football, performing arts, skills development training, and scholarships all under the global community program of XO KIDS. One of the flagship programs under XO KIDS is the Luen Thai Football School which is open to children of our employees as well as those in our immediate community including marginalized groups. This program that started in the Philippines is now also being rolled out in other Luen Thai locations beginning in Cambodia.

A significant program under XO CARE for our Community is Donate-an-Hour, which enables employees to donate work hours and its equivalent amount to the community fund. With the company matching the money raised, employees help beneficiaries of their choice, such as charitable institutions within 30 minutes of the facility, and customize programs for them. This program also allows volunteerism among the employees to grow.

Key to community work is partnership with like-minded individuals and institutions such as organizations like Tuloy sa Don Bosco Foundation in the Philippines, Future Light Orphanage (FLOW) in Cambodia and Panyu Disabled People’s Federation in China.

Luen Thai cares for the community because we believe it is our responsibility to do our share to meet the needs of society aside from our own.

XO CARE FOR THE

ENVIRONMENT We recognize that it is our responsibility to trace our footprint and leave more handprint towards environmental sustainability. Our people and our company take an active and leadership role in the care for environment. Under our XO CARE for the Environment, we focus on WATER and PAPER. We take a serious stance against single-use water bottles, and consider water conservation in our technology investments, such as waterless dyeing machine or dry dye; sublimation print; low-liquor ratio washing machines; and use of recycled and rain water.

Paper and printing are also our main considerations in our business processes.

Through our digitalization drive, we have significantly reduced our dependence on printing, which ties with our effort to be the first paperless apparel and accessories manufacturer in the world. Truly, our investment in automation and digitalization has been helping us not only to be efficient and profitable, but also to become a sustainable company.

Luen Thai cares for the environment because we believe that economic prosperity and environmental stewardship can go hand in hand.

Y RL

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PA

PE

E S S FACT

OUR JOURNEY IN BECOMING THE WORLD’S FIRST PAPERLESS APPAREL AND ACCESSORIES FACTORY

Digitalization and automation enable us to run a smart factory, become a smart enterprise, and connect with our suppliers and customers through a smart supply chain.

OUR SUSTAINABLE SMART

SUPPLY CHAIN

OUR GLOBAL

OPERATIONS

USA

55,000

EMPLOYEES GLOBALLY

9 MANUFACTURING COUNTRIES: CHINA | PHILIPPINES | CAMBODIA | VIETNAM INDONESIA | THAILAND | MYANMAR | INDIA | BANGLADESH SALES/DESIGN OFFICE - NEW YORK, USA HEADQUARTER - HONG KONG SAR

3% INDIA, BANGLADESH

11% CHINA

13% MYANMAR

38% PHILIPPINES 6% THAILAND 4% VIETNAM

2% INDONESIA

22% CAMBODIA

OVER US$1 BILLION EXPORT

OUR STRATEGIC

BUSINESS UNITS APPAREL CASUAL KNITS AND WOVEN WEAR PHILIPPINES•VIETNAM

FASHION AND SLEEPWEAR CHINA•CAMBODIA• VIETNAM•PHILIPPINES

MEN’S WEAR, WOMEN’S FASHION WEAR, AND OUTERWEAR CHINA•VIETNAM

SWEATERS CHINA•INDONESIA

SPORTS ACTIVE WEAR PHILIPPINES•CHINA• CAMBODIA

OUTERWEAR, CASUAL WOVEN, PERFORMANCE APPAREL, KNITWEAR, AND INTIMATES CHINA•INDONESIA• BANGLADESH•INDIA

SUSTAINABLE FABRICS PHILIPPINES•THAILAND

LUEN THAI IS A LEADER IN FASHION AND LIFESTYLE APPAREL AND ACCESSORIES MANUFACTURING AND A TRUSTED PARTNER OF INTERNATIONAL BRANDS.

ACCESSORIES

FASHION BAGS PHILIPPINES•CAMBODIA•CHINA

BAGS AND SMALL LEATHER GOODS CHINA•MYANMAR•THAILAND

TECHNOLOGY Integrated Solutions Technology

ON-DEMAND SOFTWARE AND SYSTEMS DEVELOPMENT MANUFACTURING PLATFORM AND MAINTENANCE SERVICES CLOUD PHILIPPINES

THE STRATEGIC BUSINESS UNIT:

D’LUXE

PHILIPPINES CAMBODIA CHINA

EXPERTS IN FASHION BAGS

CHINA MYANMAR THAILAND

THE STRATEGIC BUSINESS UNIT:

UNIVERSAL

EXPERTS IN BAGS AND SMALL LEATHER GOODS

THE STRATEGIC BUSINESS UNIT:

VERTE

PHILIPPINES VIETNAM

EXPERTS IN CASUAL KNITS AND WOVEN WEAR

CHINA VIETNAM

THE STRATEGIC BUSINESS UNIT:

TOMWELL

EXPERTS IN MEN’S WEAR, WOMEN’S FASHION WEAR, AND OUTERWEAR

THE STRATEGIC BUSINESS UNIT:

GJM

CHINA CAMBODIA VIETNAM PHILIPPINES

EXPERTS IN FASHION AND SLEEPWEAR

CHINA INDONESIA

THE STRATEGIC BUSINESS UNIT:

TIEN-HU

EXPERTS IN SWEATERS

THE STRATEGIC BUSINESS UNIT:

YUENTHAI

PHILIPPINES CHINA CAMBODIA

EXPERTS IN SPORTS ACTIVE WEAR

PHILIPPINES THAILAND

THE STRATEGIC BUSINESS UNIT:

YTY

EXPERTS IN SUSTAINABLE FABRICS

THE STRATEGIC BUSINESS UNIT:

TMS

CHINA INDONESIA BANGLADESH INDIA

EXPERTS IN OUTERWEAR, CASUAL WOVEN, PERFORMANCE APPAREL, KNITWEAR, AND INTIMATES

THE STRATEGIC BUSINESS UNIT:

SEW SEW YOU CLOUD

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BY THE HOTTEST FASHION INFLUENCERS