Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental conservation
• Employee well-being
• Corporate governance
• Anti-corruption
• Community investment

Environmental Achievements

• Implemented eco-friendly measures to reduce carbon emissions
• Reduced greenhouse gas emissions by approximately 43% at AUX (compared to the previous year)
• Ningbo AUX implemented energy efficiency programs including greening initiatives in residential estates

Social Achievements

• Provided competitive remuneration packages, including performance bonuses and holiday benefits
• Offered various internal and external training and development opportunities for employees
• Maintained an employee retention rate of approximately 95%
• Organized employee activities to enhance their sense of belonging

Governance Achievements

• Established a well-organized performance management system
• Established a board diversity policy
• Implemented anti-corruption policies and procedures, including an Employee Anti-Corruption Commitment Letter
• Established a whistle-blowing channel and policy

Climate Goals & Targets

Environmental Challenges

• Significant impact on clubbing business performance due to Magnum Club closure for renovation
• Increasing uncertainty in coming years’ economic condition and changing consumer behavior towards clubbing venues
• Landlord's decision not to renew the tenancy agreement for ACYO (formerly Magnum Club)

Mitigation Strategies

• Widened business portfolio by expanding into China’s property management services
• Extended and revised property management services agreement with Ningbo AUX Real Estate Co., Ltd
• Expanded product portfolio in clubbing business segment to include restaurant and bar through acquisition of three Hong Kong restaurant and bar outlets
• Focus on continuous development of Zentral and newly acquired bars and restaurants
• Searching for alternative premises for clubbing business

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Established procurement policies and procedures to promote fair and open competition
• Review of supplier company backgrounds, product pricing, and supply terms

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Appendix 27 to the Main Board Listing Rules of the Stock Exchange of Hong Kong Limited

Third-party Assurance: Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Employment and labor practices
• Operational practices
• Community participation

Environmental Achievements

• Implemented eco-friendly measures to reduce carbon emissions
• Residential estate greening initiatives, one estate awarded “most beautiful courtyard”

Social Achievements

• Employee retention rate of approximately 95%
• Provided competitive salaries, benefits, and welfare for employees
• Organized employee activities to enhance sense of belonging
• Provided training for 83% of Ningbo AUX employees and 64% of AUX employees

Governance Achievements

• Established a well-organized performance management system
• Formulated intellectual property policies and procedures
• Established rules to prevent drug abuse
• Established anti-corruption mechanism and required employees to sign an Anti-Corruption Commitment Letter

Climate Goals & Targets

Environmental Challenges

• Significant decrease in the number of tourists visiting Hong Kong and decreased consumer spending, impacting the lifestyle entertainment segment
• Increased property cleaning expenses and staff costs due to expansion of property management business
• COVID-19 outbreak severely affected the lifestyle entertainment segment

Mitigation Strategies

• Acquired three restaurant and bar outlets to enhance the lifestyle entertainment segment's product portfolio
• Exploring the possibility of monetizing new services such as online DJ streaming
• Strengthening energy conservation monitoring measures to reduce electricity consumption
• Promoting water conservation in residential estates and encouraging water resource recycling

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Established procurement policies and procedures to promote fair and open competition
• Review of supplier company backgrounds, product pricing, and supply terms

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

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Ningbo AUX ranked 38th among 2020 China’s Top 100 Best Property Management Service Companies
• Ningbo AUX awarded “Management Excellence in Hospital Premises China 2020”

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Employment and labour practices
• Operational practices
• Community participation

Environmental Achievements

• Implemented eco-friendly measures to reduce carbon emissions during operations
• Ningbo AUX's greenhouse gas emission intensity decreased by 7% compared to the previous fiscal year.
• Ningbo AUX equipped residential estates with LED lightings for energy saving.

Social Achievements

• Provided competitive salaries, benefits, and welfare for employees
• Maintained a monthly average employee turnover rate of approximately 5%
• Provided a total of approximately 2,994 hours of training for employees in Ningbo AUX and 24 hours in AUX.

Governance Achievements

• Complied with all applicable code provisions as set out in the Corporate Governance Code
• Complied with rules 3.10 and 3.10A of the Listing Rules
• Established a board diversity policy

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic significantly limited the performance potential of the Hong Kong operation
• Changes in the real estate industry in China posed tough challenges to the property management segment
• COVID-19 outbreak in Hong Kong created uncertainty in the future outlook of the lifestyle entertainment segment

Mitigation Strategies

• Continued to emphasise providing quality services to satisfy customer needs and fortify brand recognition
• Sought opportunities to realise the potential of community value-added services to enrich income sources
• Focused on improving efficiency in the lifestyle entertainment segment through streamlining operation procedures

Supply Chain Management

Supplier Audits: Annual evaluation on products and services of suppliers

Responsible Procurement

• Established procurement policies and procedures to promote fair and open competition
• Review of supplier company backgrounds, product pricing, and supply terms

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (heavy rains, typhoons, high temperatures, floods)

Transition Risks

• Gradual tightening of regulations on emissions in China

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• 2022 China’s Top 100 Best Property Management Service Companies award
• Management Excellence in Hospital Premises China 2022 award

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Employee welfare
• Corporate governance
• Customer satisfaction
• Supply chain management
• Anti-corruption

Environmental Achievements

• Reduced greenhouse gas emissions by approximately 29.6% compared to the 2021/22 Financial Year (from 71,103.8 tonnes to 50,049.2 tonnes). Reduction in electricity consumption from construction activities and garage lightings, and use of energy-efficient lighting installations in public areas contributed to this decrease.
• Reduced total electricity consumption by approximately 13.6% compared to the 2021/22 Financial Year (from 98,320.1 MWh to 84,976.2 MWh).

Social Achievements

• Maintained a monthly average employee turnover rate of approximately 4.3% in Financial Year 2022/23 (Financial Year 2021/22: 4.7%).
• Provided competitive salaries, performance bonuses, holiday benefits, and various insurance and provident fund schemes for employees.
• Created a harmonious working environment, protecting employees from harassment and discrimination.
• Provided 2,296 employees with approximately 4,874 hours of volunteer services.

Governance Achievements

• Complied with all applicable code provisions as set out in the Corporate Governance Code.
• Established a share option scheme to incentivize employees and directors.
• Maintained a strong independent element in the Board.

Climate Goals & Targets

Environmental Challenges

• Significant challenges faced by the lifestyle entertainment business in Hong Kong due to the COVID-19 pandemic, including social restrictions and cautious consumer behavior.
• Slower-than-expected recovery of the Hong Kong market post-COVID-19.
• Formidable competition from overseas entertainment attractions and more affordable leisure alternatives for the clubbing business.
• Decreasing trend in demand for nightlife entertainment.
• Weakened purchasing power in Hong Kong due to slower-than-expected economic recovery.

Mitigation Strategies

• Implemented various cost-cutting measures and adapted new business strategies in the lifestyle entertainment segment.
• Diversified into the property management sector.
• Implemented new marketing strategies in the lifestyle entertainment segment, such as expanding music categories.
• Focus on property management business, which has proved to be profit-making, to maximize shareholder value.

Supply Chain Management

Supplier Audits: Annual evaluation of suppliers' products and services.

Responsible Procurement

• Established procurement policies and procedures to promote fair and open competition.
• Review of supplier company backgrounds, product pricing, and supply terms.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (heavy rains, typhoons, high temperatures, floods)
• Natural disasters
• Damage to equipment
• Supply chain disruptions

Transition Risks

• Higher operating costs due to tightening emissions regulations and cost shifts from service providers.
• Market risks from climate policy-related arrangements.

Reporting Standards

Frameworks Used: Appendix 27 to the Main Board Listing Rules

Third-party Assurance: Not disclosed

Awards & Recognition

• Ningbo AUX ranked 33rd in 2023 China’s Top 100 Best Property Management Service Companies.
• Ningbo AUX awarded Management Excellence in Hospital Premises China 2023 and 2022 Zhejiang Province Property Service AAA Credit Enterprise award.

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Social involvement
• Stakeholder engagement
• Sustainable development
• Corporate governance
• Human rights
• Community investment
• Supply chain management
• Anti-corruption
• Customer satisfaction

Environmental Achievements

• Improved ranking in 2024 China’s Top 100 Best Property Management Service Companies (from 33rd to 30th)
• Awards including Management Excellence in Hospital Premises China 2023, the 2023 Zhejiang Province Property Service AAA Credit Enterprise award
• Certifications in ISO9001, ISO14001, and ISO45001

Social Achievements

• Established an employment and welfare policy in compliance with the Employment Ordinance of Hong Kong and the labour laws of the PRC
• Implemented various measures to encourage recycling office supplies and other materials, eliminating over-consumption of unnecessary products, and prioritising waste avoidance, reuse and recycling over disposal
• Held teambuilding activities to strengthen employee bonding
• Provided competitive salaries, performance bonuses, holiday benefits, MPF schemes (Hong Kong), and various insurance and provident fund benefits (PRC)

Governance Achievements

• Compliance with all applicable code provisions as set out in the Corporate Governance Code
• Adoption of The Model Code for Securities Transactions by Directors of Listed Issuers
• Established a board diversity policy
• Established a comprehensive anti-corruption policy

Climate Goals & Targets

Environmental Challenges

• Challenging operating environment in lifestyle entertainment due to subdued consumer sentiment and evolving spending patterns (Hong Kong)
• Decline in revenue from property management services due to reduced provision of office management services and pre-sale management services (China)
• Slowdown in the real estate market in China
• High employee turnover rate (43%)

Mitigation Strategies

• Discontinued operations in the lifestyle entertainment segment in Hong Kong
• Reallocation of resources towards property management and value-added services in China
• Focus and refinement of value-added services in property management
• Enhanced operational efficiency, optimized cost structures, and diversified revenue streams
• Implementation of a well-organised performance management system to retain talent

Supply Chain Management

Supplier Audits: Yearly evaluations

Responsible Procurement

• Established procurement policies and procedures to promote fair and open competition
• Review of supplier company backgrounds, product pricing, and supply terms

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (heavy rains, typhoons, high temperatures, floods)
• Natural disasters
• Damage to equipment
• Supply chain disruptions

Transition Risks

• Higher operating costs due to tightening emissions regulations
• Cost shift from service providers

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: Appendix C2 to the Main Board Listing Rules

Certifications: ISO9001, ISO14001, ISO45001

Awards & Recognition

• Management Excellence in Hospital Premises China 2023
• 2023 Zhejiang Province Property Service AAA Credit Enterprise award