Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental sustainability
• Labor standards
• Corporate governance

Environmental Achievements

• All products are halogen-free and comply with RoHS requirements.
• All production facilities conform to relevant local environmental regulations and obtained relevant certifications.
• Introduced and continued to develop solutions for enhancing energy efficiency (capacitors in LED lamps and high-efficiency lighting, new storage devices for environmentally friendly products).

Social Achievements

• Established a ‘RBA human resources procedure’ (formerly ‘EICC human resources procedure’)
• Developed competitive remuneration packages based on equitability and fairness.
• Provides provident fund contributions and medical insurance coverage to employees.
• Established a ‘RBA forced labour management procedure’ (formerly ‘EICC forced labour management procedure’)
• Established a ‘RBA anti-discrimination procedure’ (formerly ‘EICC anti-discrimination procedure’)
• Provides clear and safe dormitories to employees with adequate living area and sanitary food.

Governance Achievements

• Complied with the applicable code provisions of the Corporate Governance Code (Appendix 14 of the Listing Rules), except for the non-executive directors not being appointed for a specific term.
• Adopted the Model Code (Appendix 10 of the Listing Rules) as a code of conduct regulating Directors’ dealings in securities.
• Established a shareholders’ communication policy.
• Adopted the Board Diversity Policy.
• Adopted the Dividend Policy.
• Adopted a whistle-blowing policy.

Climate Goals & Targets

Environmental Challenges

• Global and Mainland China economies were shadowed by the US-China trade war, impacting export volume, consumer sentiment, and demand in the electronics market.
• Threats to impose tariffs on Mainland China slowed down order books and led to more stringent cost control measures.

Mitigation Strategies

• Redirected business focus towards diversified market sectors and market-leading customers.
• Further streamlined business structure and operations to enhance operating efficiencies and competitiveness.
• Deployed stringent cost control measures to combat potential US-China trade disputes.
• Continuous investment in R&D, particularly in material science, production technology innovations, and extension of product applications.
• Further customer mix enhancement and diversification to mitigate business risks.
• Further penetration into fast-growing emerging markets.
• Advancement in production lines’ automation to save labor costs.
• Thoughtfully monitoring and reacting fast to market dynamics.

Supply Chain Management

Responsible Procurement

• RoHS compliance is a requirement for all suppliers and business partners.
• Suppliers must submit testing reports and material safety data sheets.

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products and new storage devices for environmentally friendly products.

Sustainable Products & Innovation

• Energy-efficient capacitors for LED lamps and high-efficiency lighting.
• New storage devices for environmentally friendly products.

Awards & Recognition

• Energywise Certificate of the Hong Kong Green Organisation Certification
• Hong Kong Green Organisation issued by Hong Kong Productivity Council

Environmental Metrics

ESG Focus Areas

• Corporate governance
• Environmental protection
• Employment practices
• Operating practices
• Community investment

Environmental Achievements

• Successfully obtained a three-year green loan of HKD$100 million and was certified by the Hong Kong Quality Assurance Agency under the “Green and Sustainable Finance Certification Scheme”
• All products are halogen-free and comply with RoHS requirements.
• All production facilities conform to relevant local environmental protection regulations and obtained relevant certifications (ISO14001:2015, QC080000:2017, IATF16949:2016, ISO9001:2014).

Social Achievements

• Established the “RBA Human Resources Management Procedure” to standardize labor and employment management.
• Formulated the “Employee Handbook”, “RBA Wages and Working Hours Control Procedure”, and “RBA Anti-discrimination Control Procedure” to safeguard employee interests.
• Implemented an assessment system for employee performance and provides opportunities for promotion and development.
• Established a whistle-blowing mechanism to encourage reporting of corruption or fraud.

Governance Achievements

• Established an ESG governance structure with the Board taking overall responsibility and the Audit Committee overseeing ESG-related matters.
• Established a Working Group to assist in managing and overseeing ESG matters.
• Implemented a shareholders’ communication policy.

Climate Goals & Targets

Environmental Challenges

• Global economic slowdown with higher-than-expected inflation and supply chain disruptions.
• High inventory levels leading to destocking activities.
• Increased finance costs due to aggressive interest rate hikes.
• Competition risk from competitors in the electronic components manufacturing industry.
• Customers’ financial health risk due to delays in payments.

Mitigation Strategies

• Cautious planning and streamlining of production, including resource allocation, product diversification, and customer portfolio diversification.
• Stringent cost control measures to maintain a stable gross profit margin.
• Focus on R&D to enhance product quality and provide innovative products.
• Diversified customer portfolios to safeguard against global economic fluctuations.
• Implementation of credit insurance policies to mitigate credit risks.

Supply Chain Management

Responsible Procurement

• Openness, fairness, impartiality, and competitive selection in tendering and procurement.
• Strict and standardized procurement model and systematic supplier selection procedure.
• Requirement for suppliers to control environmental and social risks.
• Prioritization of local suppliers to reduce carbon footprint.
• Prioritization of suppliers using eco-friendly products and services.
• Compliance with RoHS requirements and ISO9001 certification.
• Due diligence on supplier reputation, competence, intellectual property, and experience.
• Conflict-free materials check for mineral raw material suppliers.
• Requirement for suppliers to sign the “Business Partner AEO Safety Undertaking” and fill in the “Business Partner Safety Questionnaire”.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (extreme cold/heat, storms, rainstorms, typhoons) leading to power shortages, supply chain disruptions, asset damage, and operational disruptions.

Transition Risks

• Government regulations to restrict electricity use and curb production.
• Increased compliance costs due to enhanced climate-related disclosures required by the Stock Exchange.

Opportunities

• Development of energy-efficient products and complete solutions for energy-saving and storage applications.

Reporting Standards

Frameworks Used: Appendix 27 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited

Certifications: ISO14001:2015, QC080000:2017, IATF16949:2016, ISO9001:2014

Sustainable Products & Innovation

• Capacitors for LED lamps and high-efficiency lighting.
• New storage devices for environmentally friendly products.

Awards & Recognition

• Green and Sustainable Finance Certification from the Hong Kong Quality Assurance Agency

Environmental Metrics

ESG Focus Areas

• Corporate governance
• Environmental protection
• Employment practices
• Operating practices
• Community investment

Environmental Achievements

• Reduced air emissions intensities by 2% by the year ended 31 December 2023, using 2021 as the base year.
• Reduced total GHG emissions intensity by 2% by 2023.
• Reduced total hazardous wastes intensity by 2% by 2023.
• Reduced total non-hazardous wastes intensity by 2% by 2023.
• Reduced total energy consumption intensity by 2% by 2023.

Social Achievements

• Established the “RBA Human Resources Management Procedure” to standardize labor and employment management.
• Formulated the “Employee Handbook”, “RBA Wages and Working Hours Control Procedure”, and “RBA Anti-discrimination Control Procedure” to safeguard employee interests.
• Implemented an assessment system for employee performance.
• Provided comprehensive benefits to employees, including five insurances and one fund in the PRC.
• Implemented the “RBA Occupational Health Management Procedure” to safeguard employee health and safety.

Governance Achievements

• Established an ESG governance structure.
• Conducted an annual materiality assessment to identify material ESG matters.
• Established a whistle-blowing mechanism to encourage reporting of corruption or fraud.
• Formulated the “RBA Ethical Management Procedure” to protect customer privacy.
• Formulated the “RBA Honest Advertising, Fair Trading and Antitrust Control Procedure” to regulate advertising campaigns.

Climate Goals & Targets

Environmental Challenges

• Prolonged economic downturn
• Interest rates volatility
• Longer-than-expected destocking cycle at end customers
• Aggressive interest rate hikes
• International geopolitical tensions

Mitigation Strategies

• Tightening up cost controls over production and enhancing operational efficiency
• Actively reviewing business strategies and monitoring cost and financing structures
• Implementing stringent cost control measures and prudent cash flow management
• Formulating contingency arrangements and purchasing insurance for extreme weather events
• Regularly monitoring existing and emerging climate-related trends, policies and regulations

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Openness, fairness, impartiality, and competitive selection
• Prioritising procurement from local suppliers
• Prioritising suppliers using eco-friendly products and services
• Compliance with RoHS requirements and ISO9001

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (extreme cold/heat, storms, rainstorms, typhoons) leading to power shortages, supply chain disruptions, asset damage, and increased repair costs.

Transition Risks

• Government regulations to restrict electricity use and curb production.
• Increased compliance costs from enhanced climate-related disclosures.

Opportunities

• Increased demand for low-emission products.

Reporting Standards

Frameworks Used: Appendix C2 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited

Certifications: ISO14001:2015, QC080000:2017, IATF16949:2016, ISO9001:2014

Third-party Assurance: Not disclosed

Sustainable Products & Innovation

• Capacitors for LED lamps and high-efficiency lighting; new storage devices for environmentally friendly products.

Awards & Recognition

• Green and Sustainable Finance Certification from the Hong Kong Quality Assurance Agency