Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Social Achievements

• Implemented measures to ensure compliance with all legal and regulatory requirements regarding workers’ health and safety.

Climate Goals & Targets

Environmental Challenges

• Revenue relies on successful awards of projects which are non-recurring in nature.
• Business operations may be adversely affected by the outbreak of COVID-19.
• Possible downturn in the Macau gaming industry.
• Performance is susceptible to any downturn of Macau’s general economic conditions.
• Material mismatch of actual time and costs with estimates.
• Significant portion of revenue from major customers.
• Availability of materials and fluctuations in material costs.
• Availability and performance of subcontractors.
• Potential labour disputes.
• Inherent operational risks and hazards.
• Risk management and internal control measures may not afford full protection.
• Risks relating to legal claims.
• Negative publicity.
• Inability to bill and receive full amount of contract assets.
• Insurance policies may not fully cover all potential losses.
• Operations are susceptible to adverse weather conditions.

Mitigation Strategies

• Contingency plan and enhanced hygiene and precautionary measures to safeguard the occupational health and safety of employees in response to the COVID-19 outbreak.
• Strengthening financial position to further develop capacity as a main contractor and/or participate in more large-scale construction projects.
• Expanding workforce by recruiting additional skilled professionals and labour.
• Acquiring construction machineries and equipment.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Occupational health and safety
• Anti-corruption
• Training and development
• Energy
• Employment system
• Supply chain

Environmental Achievements

• Reduced GHG emissions to 11.31 tonnes of carbon dioxide equivalents, with 73.03% from electricity use and 26.97% from fossil fuels.
• Reduced non-hazardous waste to 1.08 tonnes.

Social Achievements

• Maintained a comprehensive employment system, including an employee handbook and recruitment procedures.
• Provided an average of 7.8 hours of training per employee.
• Took steps to promote gender diversity.

Governance Achievements

• Established an ESG Working Group (planned).
• Adopted a Code of Business Conduct and Ethics.
• Established reporting channels for ethical violations.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacted project progress, resulting in delays.
• Two work injury incidents occurred, related to workplace cleanliness and safety awareness.

Mitigation Strategies

• Implemented enhanced hygiene and precautionary measures to safeguard occupational health and safety.
• Provided training to site workers to raise their awareness of potential health and safety risks.
• Postponed recruiting additional professionals and labor and acquisition of additional construction machineries and equipment to the second half of year 2021.

Supply Chain Management

Responsible Procurement

• Engineering Procurement and Subcontracting Guidelines

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: HKEx ESG Reporting Guide

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Employment and Labor Practices
• Operating Practices
• Community
• Anti-corruption

Environmental Achievements

• Total GHG emissions decreased by approximately 2.0% compared to last year.
• Total direct GHG emissions decreased by approximately 28.8% compared to last year.
• Total water consumption decreased by 11.8% compared to 2021.
• The use of paper decreased by 11.1%.

Social Achievements

• No work injury incidents occurred during the Reporting Period.
• The Group retained existing workforce without staff redundancy in 2022.
• The majority of the Group’s employees received relevant training in accordance with their job responsibilities, with an average of 25.44 hours of training per trained employee.

Governance Achievements

• The Board has adopted a board diversity policy.
• During the Reporting Period, there were no violations of relevant laws and regulations that have a significant impact on the Group.
• The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers.

Climate Goals & Targets

Environmental Challenges

• Intensifying competition in the market due to a reduction in the number of projects available for tender with higher tendered costs under the continuous impact brought by the COVID-19 pandemic.
• More stringent cost control for projects from both private and public sectors.
• Unexpected continuation of global travel restrictions in the second half of 2022 due to the COVID-19 pandemic which had constituted a material adverse impact on tourism and other related industries in Macau region and thereby affecting the investments in infrastructures and projects in Macau.

Mitigation Strategies

• The Group continued to submit tenders for new projects to sustain revenue growth and promote business stability.
• The Group successfully secured two large tender projects related to the private sector and government housing, with a total value of more than MOP58 million.
• The Group directed greater focus on government projects such as public housing, with the objective of receiving more invitations to tender from members of the private sector in the future, such as casinos and hotels.
• Adherence to stringent cost control measures and policies for ensuring the maintenance of a stable workforce.

Supply Chain Management

Responsible Procurement

• Engineering Procurement and Subcontracting Guidelines

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: “Environmental, Social and Governance Reporting Guide” (the “ESG Guide”) in Appendix 27 to the Listing Rules issued by the Stock Exchange

Environmental Metrics

ESG Focus Areas

• Occupational Health and Safety
• Product and Service Quality and Safety
• Employment Practices
• Labour Standards

Environmental Achievements

• Reduced carbon emissions through green practices in offices and construction sites (Specific figures provided in the report, but not easily summarized into a single percentage.)
• Implemented waste reduction initiatives (Specific figures provided in the report, but not easily summarized into a single percentage.)
• Improved energy and water efficiency (Specific figures provided in the report, but not easily summarized into a single percentage.)

Social Achievements

• Maintained existing workforce without redundancies despite challenging market conditions.
• Implemented comprehensive health and safety training programs.
• Established a breastfeeding room for nursing mothers.
• Provided various employee engagement activities (e.g., festive parties, annual dinner).

Governance Achievements

• Established robust internal control measures to ensure compliance with laws and regulations.
• Incorporated ESG-related risks into its risk management system.
• No material ESG risks identified during the year.
• Implemented anti-corruption training for directors and staff.

Climate Goals & Targets

Environmental Challenges

• Slower business activities compared to the previous three years due to negative market sentiment.
• Lower profit margins on awarded projects due to strategic reasons.
• Insufficient revenue from certain low-margin projects to cover fixed costs and salaries.
• Pressure from salary expenses.
• Difficult negotiation and bargaining of terms for variance orders.

Mitigation Strategies

• Implementing stringent cost control measures.
• Securing more E&M contracts.
• Optimizing internal operations to achieve greater efficiencies and cost savings.
• Strengthening core competence, best practices, and financial position.
• Exploring new business frontiers (public housing projects, government initiatives).

Supply Chain Management

Responsible Procurement

• Supplier assessment
• Engineering Procurement and Subcontracting Guidelines
• Code of Ethics

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions (typhoons, heavy rain, thunderstorms, flooding)
• Extreme heat

Transition Risks

• Tightened laws and regulations due to climate change
• Stringent climate-related disclosure requirements
• Market shifts towards sustainable alternatives

Reporting Standards

Frameworks Used: Environmental, Social and Governance Reporting Guide (ESG Guide) set out in C2 to the Listing Rules of The Stock Exchange of Hong Kong Limited