Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Renewable Energy (Shallow Ground Energy Utilization)

Environmental Achievements

• Completed two business acquisitions in environmental protection and shallow ground energy utilization.
• Increased revenue from environmental protection segment (CDM project and sewage treatment).

Social Achievements

• Not disclosed

Governance Achievements

• Established an audit committee with three independent non-executive directors.

Climate Goals & Targets

Environmental Challenges

• Rising material prices and falling market demand in the transmission segment.
• Slowdown in market investment due to the Olympic Games.

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Sustainable Growth
• Customer Service
• Management Refinement
• Inventory Optimization

Social Achievements

• Launched a “Hengdeli customer service account” with WeChat for online customer services and promotional activities.
• Established customer care and maintenance centers in Chengdu and Hong Kong, expanding customer service and warranty support across the Greater China region.

Governance Achievements

• Implemented inventory optimization aimed at boosting single store output.
• Carried out a timely and prudent adjustment of its brand portfolio in response to changing market conditions.
• Enhanced sales skills for its frontline staff and improved its customer relationship management capabilities.

Climate Goals & Targets

Environmental Challenges

• Global economic instability and China's shift to moderate economic growth.
• Sluggish Hong Kong retail market and decline in high-end brand sales.
• Market volatility in Hong Kong.

Mitigation Strategies

• Adopted the approach of ‘seeking sustainable profits to underpin healthy growth’.
• Focused on mid-end brands in Mainland China and high-end brands in Hong Kong.
• Expanded business network into second, third, and fourth-tier cities in Mainland China.
• Implemented inventory optimization, enhanced sales skills, and improved customer relationship management.
• Timely and prudent adjustment of its brand portfolio.
• Developed e-commerce platform and online-to-offline interactive sales platform.

Supply Chain Management

Responsible Procurement

• Maintained solid and well-coordinated partnerships with key brand suppliers.

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Sustainable development
• Energy saving

Environmental Achievements

• Acquired 49% equity interests in two projects regarding construction of steam transmission pipelines in Dongguan, distributing steam and heat produced by a power plant to industrial customers, heralding the Group’s undertaking the district heating business.

Social Achievements

• Not disclosed

Governance Achievements

• Established an audit committee, remuneration committee, and nomination committee. Complied with the Corporate Governance Code, except as disclosed in the report. Implemented a share option scheme.

Climate Goals & Targets

Environmental Challenges

• Uncertain macroeconomic environment in 2015, slowing economy growth in China, greater challenge in business operation, deterioration of the hotel room rate and occupancy rate in Changsha city and Hunan Province, enduring sluggish luxury hotel operation in PRC, delay of the commencement of the hotel operation, increase in cost of borrowings, slow-down of the PRC economy, pile up of property inventory of the property developers in the second and third-tier cities.

Mitigation Strategies

• Adopted proactive measures to overcome difficulties, maintaining stable performance of its businesses; vigorously adopted and implemented strategies to diversify the Group’s business portfolio; reinforcing the development of existing property and hotel business; further extended its reach to new areas, including environmental thermal related projects and other businesses; raising additional capital and obtaining additional financing from banks and others.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: HKFRS

Certifications: Null

Third-party Assurance: RSM Hong Kong

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed