Climate Change Data

Environmental Metrics

ESG Focus Areas

• Water usage
• Electricity usage
• Green building design
• Product responsibility
• Health and safety
• Development and training
• Quality of building development
• Privacy of customers
• Construction site safety
• Staff as asset
• Community
• Anti-corruption
• Supply chain
• Human rights
• Child and forced labor
• Employee benefits

Environmental Achievements

• Obtained ISO 14001 Environmental Management System for Shenzhen properties
• Installed air purifying equipment in Shenzhen properties to improve indoor air quality
• Adopted passive and environmental-friendly designs of new development, comprising energy- and water-efficient design and the use of environmental-friendly building materials
• Obtained or pursuing environmental certifications such as China GBL, LEED and other green building labels

Social Achievements

• Organized 134 trainings to employees, averaging 25 training hours per employee
• Implemented anti-corruption training (2016 Top Spring Integrity Seminar)
• Donated over HK$5.23 million to various charitable causes
• Staff turnover rate of 11.8% (12.1% in 2015)
• Property management is certified with OSHAS 18001 Occupational Health and Safety Assessment Series

Governance Achievements

• Company complies with all Code Provisions of the Corporate Governance Code (Appendix 14 of the Listing Rules)
• Established formal and transparent procedures for developing remuneration policy
• No reported non-compliances regarding corruption

Climate Goals & Targets

Environmental Challenges

• Decrease in contracted sales, saleable GFA, and gross profit margin of recognised sales in 2016
• Increase in market financing costs and tightening of financing facility
• Fierce competition for bidding of land/project in first- and second-tier cities of the PRC

Mitigation Strategies

• Adopted a series of drastic reform measures
• Disposed of some saleable resources in the form of transferring shares to other independent third parties and settling intercompany loans
• Successfully issued domestic and overseas bonds to increase flexibility in fund utilisation and optimise long-term and short-term debt structure
• Re-focusing on the Pearl River Delta, the Yangtze River Delta, and Central China

Supply Chain Management

Responsible Procurement

• Consideration of environmental protection, construction safety, and product safety in service provider selection
• Completion assessment of service providers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Hong Kong Stock Exchange Environmental, Social and Governance Reporting Guide

Certifications: ISO 14001, OSHAS 18001, ISO 9001

Awards & Recognition

• 2016 Most Stable Real Estate Company in China
• 6th Steady Real Estate Enterprise of the Year
• 2016 Most Influential Real Estate Enterprise in China
• 2016 Most Valuable Listed Real Estate Enterprise in China
• 2016 Listed Company Award – Most Potential Listed Company

Environmental Metrics

ESG Focus Areas

• Community contributions through monetary donations
• Environmental advocacy
• Anti-corruption

Environmental Achievements

• Replaced lighting fixtures with LEDs, reducing electricity consumption.
• Shenzhen Top Spring Property Services Co., Ltd. obtained ISO 14001 Environmental Management System certification.
• Implemented rainwater collection and reuse for road cleaning and plant irrigation.
• Established cooperation with an old clothing recycling company.

Social Achievements

• Donated over HK$2.61 million to various foundations and charities.
• Provided regular body check-ups and medical insurance to workers.
• Property management is certified with OHSAS 18001 Occupational Health and Safety Assessment Series.
• Established reporting channels for grievances and complaints.

Governance Achievements

• Complied with all the Code Provisions set out in the Corporate Governance Code.
• Established formal and transparent procedures for developing remuneration policy.
• Adopted a “Nomination Policy” and a revised “Board Diversity Policy”.

Climate Goals & Targets

Environmental Challenges

• The Chinese real estate market faced a complicated environment in 2018, including the escalation of Sino-U.S. trade conflict, economic downturn pressure, tight funding, and increased real estate control.

Mitigation Strategies

• Undertook strategic adjustments to business and financial structure, disposing assets and reducing debts.

Supply Chain Management

Responsible Procurement

• Careful appointment of external contractors considering environmental protection, construction safety, and product safety.

Climate-Related Risks & Opportunities

Reporting Standards

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

Certifications: ISO 14001, OHSAS 18001, ISO 9001

Awards & Recognition

• 2018 Most Influential Listed Real Estate Enterprise in China
• 2018 China Top 100 Players of The Commercial Real Estate
• 2018 China Top 100 Property Service Company
• 2015-2018 China Top 100 Property Service Company for four consecutive years
• 2017 Guangdong Province User-recognized Services Star Enterprise
• National “Quality and Creditworthy” Enterprise
• Enterprise Credit Rank Certificate with AAA Credit Rank

Environmental Metrics

ESG Focus Areas

• Compliance Operation
• People-oriented
• Environmental Management
• Community Care

Environmental Achievements

• Implemented green building designs and features, including passive building designs, energy-efficient and water-efficient fixtures, and renewable energy considerations.
• Achieved main environmental objectives in property management: replaced lighting with LEDs, reduced lighting usage, obtained ISO 14001 certification, encouraged tenants to minimize resource consumption, provided recycling facilities, implemented rainwater collection and reuse, and used pesticides and cleansing agents according to regulations.

Social Achievements

• Donated over HK$2.22 million to various charitable organizations.
• Maintained staff turnover rate at 8% (12.9% in 2019).
• Average employee service length was 4 years (3.45 years in 2019).
• No work-related injuries or fatalities occurred.
• Provided competitive compensation and benefits packages, supportive working conditions, and work-life balance.
• Implemented a quality control system to monitor food supplies in schools.

Governance Achievements

• Complied with all Code Provisions of the Corporate Governance Code (except for the separation of Chairman and CEO roles).
• Held five Board meetings and two Remuneration Committee meetings.
• Held two Audit Committee meetings.
• Held one Nomination Committee meeting.
• Complied with the Model Code for Securities Transactions by Directors.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic significantly impacted global economic development and the real estate industry.
• Stringent housing control policies were implemented in several cities in China.
• Hong Kong's economy was severely affected by the pandemic.

Mitigation Strategies

• Persisted in a strategy of prudent progress and adopted effective operational measures to minimize the impact of the pandemic.
• Focused on project development in Nansha, Guangzhou.
• Implemented various operational initiatives and developed new projects.

Supply Chain Management

Supplier Audits: Regular performance evaluations based on environmental and social risks.

Responsible Procurement

• Work with reputable third-party suppliers with high corporate standards.
• Consider construction safety, product safety, corporate governance, labour conditions, ethics, and environmental standards in supplier selection.

Climate-Related Risks & Opportunities

Reporting Standards

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

Certifications: ISO 14001, OHSAS 18001, ISO 9001

Awards & Recognition

• 2020 Annual Community Innovation Development Award in China
• 2020 China Top 100 Players of The Commercial Real Estate
• 2020 China Top 100 Property Service Companies
• 2019 Shenzhen Top 100 Property Management Companies in terms of Comprehensive Strength
• 2019 Satisfaction of Property Management Owner (Residential) Shenzhen Index (sampling unit) Top 30
• 2020 City Service Advancement Award in Mall China Golden Mall Award

Environmental Metrics

ESG Focus Areas

• Water consumption and conservation
• Energy efficiency and conservation
• Waste management
• Indoor air quality
• Air emission
• Climate change and GHG emission
• Community
• Product responsibility
• Supply chain management
• Labour practices
• Health and safety
• Employee development and training
• Employee benefits
• Corporate governance
• Business integrity

Environmental Achievements

• Implemented various monitoring and control measures in different key construction site management aspects to ensure full compliance with the relevant environmental laws and regulations.
• Upgrading lighting systems with LED fixtures
• Reducing the amount of lighting used in common areas
• Maintaining ISO 14001 Environmental Management System certification
• Organised recycling campaigns of second-hand textbooks, which were donated to students in need

Social Achievements

• Designated grievance channels in place such that employees can report suspected non-compliance or misconduct without fear of reprisal.
• Provided approximately 10,200 hours of training and development for our employees
• Organised various team building activities to enhance cohesion and teamwork among staff

Governance Achievements

• Developed policies and measures to manage risks along our supply chain and maintain transparency and fairness in our procurement process.
• Conducted various types of ethics and anti-corruption training every year to raise the awareness and moral consciousness of the Board and our staff

Climate Goals & Targets

Environmental Challenges

• The COVID-19 pandemic impacted operations.
• The international landscape was subject to acute volatility while the global economy suffered a major setback amidst serious conflicts caused by a range of mutual factors including the COVID-19 pandemic, Russia-Ukraine conflict and the resulting food and energy crisis, rising inflation, tightened debt and urgent climatic conditions.
• In 2022, the PRC property market experienced a slow-down.

Mitigation Strategies

• Allocated all resources in support of efforts to address adversities, providing anti-epidemic support to tutors, students and parents.
• Implemented measures to accelerate the pre-sales and sales of its properties under development and completed properties, and speed up the collection of outstanding sales proceeds and other receivables.
• Negotiating with the banks and borrowers for renewal of existing bank facilities.
• Mr. Wong Chun Hong, a substantial shareholder of the Company, has issued a letter of financial support to the Company.
• Took active measures to control administrative costs and maintain containment of capital expenditures.

Supply Chain Management

Supplier Audits: Regular review of suppliers and contractors

Responsible Procurement

• Prudent selection and evaluation of suppliers based on pricing, reputation, construction and product safety
• Consideration of suppliers’ high corporate standards

Climate-Related Risks & Opportunities

Physical Risks

• Floods, strong typhoons and heat waves

Transition Risks

• Increasingly stringent environmental laws and regulations

Reporting Standards

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

Certifications: ISO 14001, ISO 45001, ISO 9001

Awards & Recognition

• 2022 China Top 100 Property Management Companies
• 2022 Growth Property Service Companies
• 2021 Shenzhen Property Management Association – Outstanding Enterprise
• 2021 Boutique Community Business
• 2022 Anti-epidemic Pioneer Property
• 2021 Reward for Advanced Collective
• Yangpu Artificial Intelligence and Big Data Innovation Base

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Employment Management
• Operating Practices
• Community Involvement
• Corporate governance
• Business integrity
• Climate change
• Community Investment
• Product responsibility
• Supply chain management
• Labour practices
• Health and safety
• Employee development and training
• Employee benefits

Environmental Achievements

• Obtained ISO14001 Environmental Management System certification.
• Implemented green building concept into building lifecycle, referring to green building guidelines and requirements.
• Implemented energy-saving initiatives and measures in daily operations.
• Reduced GHG emission in 2023 compared to 2022.

Social Achievements

• Property management is certified with ISO 45001 Occupational Health and Safety Management System.
• Provided regular health and safety training for staff.
• Continued staff’s development by providing in-house training and sponsoring further studies.
• Organized various recreational and teambuilding staff activities.
• Addressed customer complaints related to products and services with a 100% prompt processing rate.

Governance Achievements

• Established a whistle-blowing policy for reporting suspected misconduct.
• Complied with the CG Code.
• Maintained a high standard of business integrity.

Climate Goals & Targets

Environmental Challenges

• Decrease in property sales revenue in 2023 compared to 2022.
• Net loss incurred in 2023.
• Prevailing slowdown of the property market and tightening of the financing environment.
• Challenges in securing additional financing and renewal of existing bank facilities and borrowings.

Mitigation Strategies

• Implementing measures to accelerate pre-sales and sales of properties.
• Negotiating with banks and a shareholder for renewal of existing bank facilities and borrowings.
• Financial support from Mr. Wong Chun Hong.
• Controlling administrative costs and containing capital expenditures.

Supply Chain Management

Supplier Audits: At least once a year

Responsible Procurement

• Purchasing products/services from reputable enterprises.
• Selecting products with minimal environmental impact.
• Prioritising suppliers with ISO certification.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (typhoons and floods)
• Rising sea levels and flooding
• Changes in precipitation patterns

Transition Risks

• Tightening laws and regulations on climate change
• Changes in government property supervision requirements

Opportunities

• Using energy-efficient equipment and technologies
• Reducing energy consumption costs
• Accessing environmental-friendly markets

Reporting Standards

Frameworks Used: Appendix C2 to the Rules Governing the Listing of Securities

Certifications: ISO 14001, ISO 45001, ISO 9001

Awards & Recognition

• 128 Waterloo: Best Architecture Multiple Residence Hong Kong Asia Pacific Property Awards 2023–2024
• Shanghai Laijun Commercial Management Co., Ltd.: Alliance of the Establishment of Learning-oriented Enterprises in Yangpu District – “Member of Excellence”
• Shenzhen Topspring Business and Investment Management Co., Ltd.: 2023 Commercial Property Enterprises – Business Performance
• Top Spring International Centre: Yangpu Artificial Intelligence and Big Data Innovation Base
• Shenzhen Top Spring Property Services Co., Ltd.: 2023 Shenzhen Property Management Association – Outstanding Enterprise
• Shenzhen Top Spring Property Services Co., Ltd.: “Outstanding Enterprise” of Daling Community in 2023
• Shenzhen Top Spring Property Services Co., Ltd.: “Member of Excellence” for Safety Production in 2023
• Shenzhen Top Spring Property Services Co., Ltd.: “Member of Excellence” in 2023
• Shenzhen Top Spring Property Services Co., Ltd.: “Member of Excellence” for Safety Production in Fubao Street in 2023