Supplier Sustainability Management Handbook

Sustainable Development 11 3.4 Audit Requirements The following criteria will be used by Bosideng to classify and manage suppliers: • Level 1 (Direct) Suppliers: Direct suppliers providing finished products (such as ready-made garments, finished accessories); • Level 2 (Material) Suppliers: Suppliers providing fabrics and accessories, packaging materials, and component processing to Level 1 suppliers, including fabrics, accessories, and components (such as zippers or webbing) for ready-made garments; • Level 3 (Raw Material) Suppliers: Suppliers of raw materials, such as down, yarn, chemical inputs. Sustainability Management Standards for Level 1 (Direct) Suppliers: • Suppliers must have a valid social responsibility audit report or certificate from Bosideng's audit team or a third party within the validity period; • Suppliers must have a valid environmental audit report or certificate from Bosideng's audit team or a third party within the validity period; • The issues identified during the audit do not involve Zero tolerance issues for Bosideng. Sustainability Management Standards for Level 2 (Material) Suppliers: • Suppliers must have a valid social responsibility audit report and certificate from Bosideng's audit team or a third party within the validity period; • Suppliers must have a valid environmental audit report and certificate from Bosideng's audit team or a third party within the validity period; • The issues identified during the audit do not involve Zero tolerance issues for Bosideng; • If chemicals are used, a ZDHC MRSL compliance audit should be conducted. Sustainability Management Standards for Level 3 (Raw Material) Suppliers: • Suppliers must have a valid social responsibility audit report or certificate from Bosideng's audit team or a third party within the validity period; • Suppliers must have a valid environmental audit report or certificate from Bosideng's audit team or a third party within the validity period; • The issues identified during the audit do not involve Zero tolerance issues for Bosideng; • If chemicals are used, a ZDHC MRSL compliance audit should be conducted. 3.5 Audit Results and Rectification Plan 3.5.1 Audit Results After the audit is completed, and upon approval by Bosideng's supply chain management, the supplier will be informed of the audit results and whether corrective actions are required. If rectification is needed, the supplier should complete the corrective action plan within the specified time frame. In 2025, we updated the evaluation mechanism for supplier performance. We further refined the scoring system for supplier environmental, social, and governance (ESG) performance within