THE OVERVIEW OF THE 2021 SUSTAINABILITY REPORT

KEY UPDATES IN THE SUSTAINABILITY REPORT

THE BOARD OF DIRECTORS MEMBERS TENURE 2018-2023

THE ROLE AND RESPONSIBILITY OF THE BOARD OF DIRECTORS TO

PREVENTION OF INTEREST CONFLICT AND TRANSACTIONS WITH RELATED

CODE OF CONDUCT TO RELATED PARTIES

THE ADVISORY AND REPORTING CONCERNS REGIME ABOUT THE CODE OF

DETERMINATION OF RELATED PARTIES' PRIORITY

LIST OF MAJOR MATTERS OF STK

DEFINING SUSTAINABLE DEVELOPMENT OBJECTIVES ON MEDIUM AND

ANALYSIS AND EVALUATION OF KEY RISKS

THE SYSTEM OF INFORMATION COLLECTION AND SUPERVISION OF THE

FULFILLMENT OF SUSTAINABLE DEVELOPMENT OBJECTIVES

REPORT ASSURANCE BY THIRD PARTY

POLLUTION PREVENTION - ENVIRONMENTAL COMPLIANCE

HEALTH AND SAFETY OF CUSTOMERS

REFERENCE TABLE TO GRI STANDARDS

SUSTAINABLE ACHIEVEMENTS OF STK IN 2021

CSI 100 : STK was ranked in Vietnam's Top 100 Sustainable Enterprises in

2021, according to the CSI 100 Index (manufacturing sector). This is the

6th time in 6 consecutive years that STK has received this honorable award

ARA 2020 - 2021: STK won the 2nd prize of the 2021 best sustainability reports. In 5 consecutive years from 2017-to 2021, the STK sustainability report has always been in the top 10 best quality reports in the market. In addition, the annual report also ranked in the top 10 2021 best annual reports in the Midcap group.

Dear valued shareholders and investors,

The year 2021 closed with many difficulties, challenges, and damages caused by the Covid 19 pandemic, but the crisis could not make us fall. Instead, with perseverance and best efforts, the community has come together to overcome the pandemic, then gradually recover and continue to develop.

Being consistent with STK's sustainable development strategy from the very beginning, especially focusing on developing and providing high quality eco- friendly products, which helped the Company to create more added values, aligning the interests of stakeholders, thereby helping the Company to maintain stable operation during 2021 when the Covid-19 pandemic severely outbroken and strongly affected the domestic market.

With nearly 20 years of operation in the field of polyester filament yarn production, STK has built a complete and appropriate human resources policies and practices which ,coupled with a corporate culture of solidarity and mutual

support, helped ensuring employee retention and sufficient human resources for the Company operation during the difficult period; As the company always places customers at its center of focus while willing to share the benefits with related parties such as suppliers/partners, during the outbreak of the Covid-19 pandemic in 2021, the Company still maintained a stable number of orders and ensured uninterrupted supply chain.

In addition, with the core value system of continuously and proactively renovating and improving efficiency and productivity, the Company has been successfully developing environmentally friendly products with high added value, at the same time reducing the production waste, then ensuring the Company's profitability.

In the period of 2022-2025, the Company will continue to maintain a sustainable development orientation in line with the general trend of Vietnam's textile and garment industry when more and more world fashion brands are making strong commitments in combating climate change, reducing greenhouse gas emissions, protecting the environment aiming towards the United Nations' goal of zero-carbon footprint by 2050 and balancing social responsibility.

Thereby, the Company will focus on developing more environmentally friendly products with high added value such as recycled yarn with many special features; increasing the proportion of dope dyed and recycled yarn in the total sales revenue, implementing capacity expansion projects such as Unitex factory with the latest technological equipment and a high degree of automation to maximise energy saving, increasing new product development capabilities as well as the project under the yarn-textile-garment alliance in the near future in order to enable the Company to meet the customers' growing demand.

In addition, the Company will also invest more in the latest information technology systems for its production and operation activities such as POC production management system, production planning management software,

warehouse management software, automated packaging line etc. … which can help it to optimize and improve the Company's operational efficiency while reducing consumption and limiting emissions to protect the environment. x

We hope that with the guidance of the Board of Directors and shareholders' support, the Company will reap the set objectives and bring more interest to shareholders, employees, and the community.

ĐẶNG TRIỆU HÒA

Established in 2000 as a limited liability company, Century Corporation has been focusing on production of polyester filament (POY, FDY and DTY). The Company changed into a joint-stock company in 2005, creating a foundation for future capital raising to finance development. On September 30th , 2015, Company was officially listed on Hochiminh Stock Exchange with an STK ticker. STK is one of the largest yarn manufacturers in Vietnam with a capacity of over 60 thousand tons of yarn annually. The development strategy focuses on premium products, especially eco-friendly ones such as recycled and color yarn. STK balanced the proportion of exporting and in-land market in total revenue around 50%: 50%. Recycled yarn (made of the recycled polyester chip which comes from post-consumer-used plastic bottles) has been STK's key growth driver due to the growing demand for eco-friendly products. Tentatively, STK will increase the proportion of recycled yarn up to 100% in the total revenue of existing factories by 2025.

CENTURY SYNTHETIC FIBER CORPORATION'S EFFORTS IN THE 20 YEARS PATHWAY TO SUSTAINABLE DEVELOPMENT

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Century Synthetic Fiber Corporation published this content on 16 June 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 June 2022 03:02:00 UTC.