Climate Change Data

Environmental Metrics

ESG Focus Areas

• Employee well-being
• Customer satisfaction
• Community engagement
• Supplier relationships
• Environmental protection

Environmental Achievements

• Implemented waste oil recycling scheme, collecting 3,048 barrels of oil in FY2018.
• Adopted energy-efficient appliances (LED lights) to reduce energy consumption.
• Participated in Food Wise Hong Kong campaign to reduce food waste.

Social Achievements

• Provided approximately 515.5 hours of training in Hong Kong, 415 hours in Mainland China, and 109 hours in Macau.
• Established an ‘Employees Relationship Team’ to improve communication and address employee concerns.
• Launched new brands Nijuuichi Don and MaoMao Eat to cater to evolving customer preferences.

Governance Achievements

• Invited ICAC to provide anti-corruption training to management.
• Strictly adhered to local employment laws and regulations in Hong Kong, Macau, and PRC.

Climate Goals & Targets

Environmental Challenges

• Food waste generation
• Energy consumption
• Maintaining high food safety and hygiene standards across all locations.

Mitigation Strategies

• Implemented food waste separation and collection programs.
• Adopted energy-efficient appliances and lighting control systems.
• Established comprehensive food safety management systems in central kitchens and restaurants.

Supply Chain Management

Supplier Audits: 468 suppliers on the ‘Approved List of Suppliers’

Responsible Procurement

• Suppliers must hold government-approved licenses.
• Goods must comply with food labelling, hygiene, and sanitary regulations.
• Suppliers undergo comprehensive evaluations.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ESG Reporting Guide (Appendix 27 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited)

Certifications: ISO22000:2005 (central kitchen)

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 12 (Responsible Consumption and Production)
• Goal 6 (Clean Water and Sanitation)
• Goal 13 (Climate Action)

The Group's initiatives in energy efficiency, waste reduction, water conservation, and GHG emissions reduction contribute to these SDGs.

Sustainable Products & Innovation

• Environmentally friendly takeaway packaging

Awards & Recognition

• 2017 Golden Hong Kong Stocks Awards “Most Valuable Medium-and Small-cap Stock”
• Best Late Night Dining (HKClubbing.com)
• Hong Kong Outstanding Parade 2017 (Economic Digest)
• and others listed in the report

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Social responsibility
• Corporate governance

Environmental Achievements

• This Annual Report is printed on environmentally friendly paper
• Promoted environmental protection initiatives, bolstered its green procurement and energy saving policies, and provided customers with friendly reminders to reduce food waste.

Social Achievements

• The Group has been strongly encouraging all its employees to partake in charitable activities organised by and associated with the Group such as the Hong Kong Community Chest’s fundraising activities.
• The Group tried to strike a balance between protecting employment and managing our expenses.
• The Group received government subsidies of approximately HK$9.5 million which were mainly attributable to the Anti-epidemic Fund and the Employment Support Scheme during the Year, and helped to alleviate the current pressure as well as offset the negative impact to a certain degree.
• Won a number of major awards/recognitions, including Quality Tourism Services Scheme — Restaurant Category awarded by Hong Kong Tourism Board; Hong Kong Green Organisation recognised by Environmental Campaign Committee; and Upgrading and Transformation Certificate of Merit awarded by Hong Kong Young Industrialists Council.

Governance Achievements

• The Company is committed to achieving and maintaining a high standard of corporate governance that properly protects and promotes the interest of its Shareholders and devotes considerable effort to identifying and formalising good corporate governance practices.
• The Company has adopted and adhered to the principles in the Corporate Governance Code effective from January 2022 as set out in Appendix 14 to the Listing Rules (the “CG Code”).
• The Board periodically reviews and continues to abide by the Company’s corporate governance policies to ensure compliance with the code provisions of the CG Code.

Climate Goals & Targets

Environmental Challenges

• The global novel coronavirus disease 2019 (the “COVID-19”) pandemic (the “Pandemic”) had not broken off. In Hong Kong, given the drastic deterioration of the Pandemic, the Hong Kong government (the “HK Government”) had further tightened the social distancing measures by, along with a raft of other social distancing measures, limiting the maximum number of persons per table in dining places to two and fully implementing the “vaccine pass”. Besides, dine-in service during dinnertime had also been banned during the period from 10 February 2022 to 21 April 2022.
• The business performance in Mainland China was slightly weaker than that in Hong Kong. At the beginning and the end of the Year, the Central Government had implemented lockdown policies in various cities and a number of emergency prevention and control measures to mitigate the risk of the Pandemic spreading further in the country.

Mitigation Strategies

• The Group had responded quickly by enhancing its delivery services to customers via its own takeaway delivery team “Tsui Wah Delivery (快翠送)” and other online takeaway platforms such as “deliveroo” and “foodpanda” and had offered attractive discount to our takeaway customers (for self-pickup) with a view to encouraging them to use our self-pickup takeaway service, which had partially offset the impact of the tightened social distancing measures.
• The Group had continued promoting its takeaway services and working closely with popular food delivery service providers such as “Meituan” and “ele.me”.
• The Group has commenced timely adjustments in its business hours, staff arrangements and menu in order to minimise the impact of the Pandemic.
• The Group will identify more feasible solutions or approaches that could reduce operating costs.
• We shall also keep an eye on the Pandemic and the market development, analyse the situation and adjust our strategies whenever necessary to minimise adverse impacts.
• The Group will actively broaden its platforms and develop its new brands and explore other new business models with a view to maintaining flexible market responses and coping with the change in consumption manner.
• The Group will accelerate its expansion in overseas markets and the Guangdong-Hong Kong-Macao Greater Bay Area, and strengthen marketing efforts to expand its customer base.
• The Group will also make good use of its strategic partnership relationship with Jumbo in Singapore, and continue carefully seeking development opportunities in Singapore and other Southeast Asia regions.
• The Group will actively promote takeaway services to further strengthen its food delivery business and will launch marketing promotions to attract more customers so as to mitigating the adverse impact of the social distancing measures.
• The Group is taking decisive measures to protect profit margins by controlling its costs (such as rent and labour costs) as well as reviewing and readjusting its recurrent expenditure.

Supply Chain Management

Responsible Procurement

• Green procurement policies

Climate-Related Risks & Opportunities

Awards & Recognition

• Quality Tourism Services Scheme — Restaurant Category
• Hong Kong Green Organisation
• Upgrading and Transformation Certificate of Merit