Analysis Report on Environmental Penalties for Fuerun Co., Ltd.'s Vietnam Factory

Based on my search results, specific information regarding

is currently limited in public sources. I can only provide a preliminary analysis based on the currently available information for you:

is a global supplier of eco-friendly fabrics with sustainable development at its core, whose main business is the R&D, production and sales of eco-friendly fabrics. The company’s major clients include internationally renowned brands such as UNIQLO, GU, H&M, ZARA, C&A [1].

The company has production bases around the world, including Hangzhou, Zhejiang Province, Nantong, Jiangsu Province, and Vietnam, among others. The Vietnam factory is mainly engaged in weaving and finishing capacity building [1].

According to public reports, Fuerun Co., Ltd. has indeed been “repeatedly penalized”, including that its Vietnam factory has received environmental-related penalties [2].

Based on the characteristics of the textile industry and existing information, the penalty on the Vietnam factory may involve the following reasons:

• Excessive Wastewater Discharge
  : The textile printing and dyeing industry is a key industry for water pollution, and Vietnam has strict standards for industrial wastewater discharge
• Insufficient Waste Gas Treatment
  : The waste gas treatment facilities in the dyeing and finishing process may not meet the standards
• Irregular Solid Waste Disposal
  : Improper handling of solid waste generated during production
• Environmental Impact Assessment
  : It may involve incomplete EIA procedures for construction projects [3]

• Brands such as H&M and ZARA have strict environmental and social responsibility audit standards for suppliers
• Audits arranged by brand owners such as HIGG FEM (Environmental Module) and ZDHC (Zero Discharge of Hazardous Chemicals) may have identified issues [1]

The textile industry, as a highly polluting industry, is facing increasingly stringent environmental supervision in Southeast Asian countries such as Vietnam. In 2024, the export value of Vietnam’s textile industry reached US$43.7 billion, while China’s textile export value was US$286 billion [1].

Details such as the regarding the penalty on Fuerun Co., Ltd.'s Vietnam factory have not been clearly recorded in public information. It is recommended that you:

1. Directly ask the company through the
   Shenzhen Stock Exchange Investor Interaction Platform
2. Review the relevant risk disclosures in the company’s
   prospectus (draft submission)
3. Pay attention to the major event explanations in the company’s
   announcements
4. Consult professional investment research institutions for more detailed information

For more in-depth analysis, you may consider enabling the

to obtain detailed data from professional brokerage databases.

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[1] Prospectus (Draft Submission) for the Initial Public Offering of Hangzhou Fuerun Co., Ltd. - Shenzhen Stock Exchange
[2] Eastmoney.com - High Accounts Receivable and Repeated Penalties! Fuerun Co., Ltd. Expects Double Decline in Revenue and Net Profit This Year
[3] Reply to the Review Inquiry Letter for the Initial Public Offering and Listing on the Main Board of Hangzhou Fuerun Co., Ltd.