Huafon Fashion Co., Ltd.
2025 Board of Directors Work Report
In 2025, the company's Board of Directors strictly adhered to the provisions of the "Company Law of the People's Republic of China," "Securities Law of the People's Republic of China," "Shenzhen Stock Exchange Stock Listing Rules," "Articles of Association," and the "Shenzhen Stock Exchange Listed Company Normative Operation Guidelines," among other relevant laws, regulations, normative documents, and company rules. The Board diligently performed its duties, operated in a standardized manner, and actively promoted the company's various tasks. The 2025 work of the Board of Directors is hereby reported as follows:
I. Overall Business Operations During the Reporting Period
Guided by the strategic theme of "Adhering to the Main Business, Sharing the Industry, and Developing New Ventures," the company has consolidated its core yarn business, expanded its shared industry, and optimized its new ventures. As one of the world's largest manufacturers and suppliers of colored yarns, its main business is mid-to-high-end colored yarns, supplemented by high-end new grey yarns and dyed yarns. It also provides value-added services such as trend analysis, raw material and product certification, and technical consulting. Through integrated innovation in color, material, and process technology, the company offers high-quality products and services to its customers. While adhering to its main business, the shared industry connects the textile and apparel industry through yarns, integrating cotton planting, cotton processing, warehousing and logistics, yarn trading, and textile and apparel supply chains. This creates a full supply chain business from a cotton flower to a pair of socks or a piece of clothing, connecting upstream and downstream industries and aiming to become a fashion operator in the global textile and apparel industry. The development of new ventures is driven by the intelligent computing center, providing computing power leasing services and exploring the application of artificial intelligence in the textile and apparel business to upgrade the textile industry chain.