Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Implemented green office practices such as double-sided printing and copying, promoting using recycled papers and reducing energy consumption by switching off idle lighting.
• In 2019, we target an amount equivalent to round 20% of paper consumed at office was recycled.
• In 2019, we are to progressively implementing water-efficiency measures throughout our operation, including putting reminders on water conservation are posted in pantry, installation of water-efficient faucets, fixtures and fittings in our offices and equipment in our facilities, and encouraging behavioral change in our people.

Social Achievements

• Provides a fair and equal working environment and opportunities to employees of different background, age and gender.
• Provides employees with reasonable remuneration and benefits to reward them for our shared achievements.
• Complies with local labour laws and regulations with respect to employment and labour issues to ensure all employees are treated fairly.
• All new employees attend a Comprehensive Training Program on their first day of work.

Governance Achievements

• Established three Board Committees including the Nomination Committee, the Remuneration Committee and the Audit Committee.
• Complied with all the code provisions under the Corporate Governance Code throughout the year ended 31 March 2018, except for two deviations (A.6.7 and C.2.5).

Climate Goals & Targets

Environmental Challenges

• Deteriorating operating performance of garment customers in the United States and Canada due to decline in same-store sales, decreased profits, high gearing ratio, and liquidity crisis.
• Shrinking sales receivables turning into bad debts.
• Rise in costs like raw material and wages, and limitations of environmental resources forcing brand owners to switch sourcing to low-cost countries.

Mitigation Strategies

• Implemented strategies to expand geographical coverage for garment sourcing management business, particularly in China.
• Diversified garment sourcing management business in more geographical locations, reducing reliance on Canada and the United States.
• Expanded network of suppliers to include more diversified garment products.
• Entered into a long-term supply agreement with Hangzhou Welfull Group Co., Ltd.
• Explored a new business model through O2O marketing and retail solutions.

Supply Chain Management

Responsible Procurement

• Conducting preliminary assessment on potential suppliers’ and distributors’ credentials; examining whether materials and/or products supplied comply with relevant safety and environmental standards.

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Social Responsibility
• Governance

Environmental Achievements

• Reduced greenhouse gas emissions from 489.9 tonnes CO2e in 2021 to 474.8 tonnes CO2e in 2022.
• Reduced paper usage through green office initiatives.
• Implemented water-saving policies.

Social Achievements

• Maintained a safe working environment with no work-related injuries for three years.
• Provided comprehensive training programs for new employees.
• Offered regular training and education opportunities for employees.

Governance Achievements

• Complied with all applicable laws and regulations.
• Implemented anti-corruption policies and training.

Climate Goals & Targets

Environmental Challenges

• Climate change risks
• Supply chain risks

Mitigation Strategies

• Contingency plans to address climate risks
• Stringent supplier assessment and management

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Preliminary assessment of supplier credentials
• Sustainable development and anti-commercial bribery rules in contracts

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

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

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

• Employee development and training
• Customer satisfaction
• Mutual development of suppliers
• Use of natural resources
• Employee remuneration, benefits and rights
• Environmental protection

Environmental Achievements

• Reduced NOx emissions from 9.45 kg to 8.22 kg, SOx emissions from 1.32 kg to 1.12 kg, and PM emissions from 0.88 kg to 0.80 kg.
• Reduced greenhouse gas emissions (Scope 1 and 2) from 474.8 tonnes to 452.6 tonnes of carbon dioxide equivalent.
• Reduced non-hazardous waste from 1.33 tonnes to 1.26 tonnes.

Social Achievements

• No work-related injuries in the past three years.
• Provided training to 66% of senior management, 33% of middle management, and 50% of junior staff.
• Donated RMB500,000 to the Guizhou Charity Federation.

Governance Achievements

• Established an environmental, social and governance policy.
• Implemented anti-corruption training for directors and employees.
• No legal violations or complaints related to corruption identified.

Climate Goals & Targets

Environmental Challenges

• Reducing emissions and waste year by year.
• Reducing energy and water consumption year by year.

Mitigation Strategies

• Raising awareness on the importance of environmental impact and waste reduction through notices and internal communication.
• Implementing energy-efficient features in buildings, moderating office temperatures, encouraging employees to use public transport, and utilizing video conferencing.

Supply Chain Management

Responsible Procurement

• Preliminary assessment on potential suppliers’ credentials, examining compliance with safety and environmental standards, formulating rules for suppliers to comply with (sustainable development and anti-commercial bribery), paying close attention to suppliers’ performance in terms of safety and environment.

Climate-Related Risks & Opportunities

Reporting Standards

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

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability

Environmental Achievements

• Green office practices such as double-sided printing and copying, promoting using recycled papers and reducing energy consumption by switching off idle lighting are encouraged in the operation of the Group’s businesses.

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Adverse international landscape and geopolitics, including the Ukraine-Russia conflict, high energy prices, high inflation, and interest rate hikes, dampened consumer confidence and affected disposable income.
• Prolonged weakness of the domestic and international textile market due to trade frictions and supply chain changes.
• Sino-US trade disputes and increasing trade barriers.
• COVID-19 pandemic impacting market confidence and retailer performance.
• Increased customer expectations regarding speed, quality, and pricing of products and services.
• Slow recovery of customer spending power in Hong Kong due to the COVID-19 pandemic, although consumption vouchers and Mainland reopening provided some relief.

Mitigation Strategies

• Established new procedures for supplier selection to enhance sustainable business growth, focusing on reputable and financially sound suppliers.
• Adopted a strategy of "lower profit margin, higher sales volume" to mitigate risks in the garment sourcing segment.
• Strictly control the quality of supply chain to ensure its excellent product quality is consistently maintained, to meet the consumers’ expectations as well as to adhere to the customer-orientation principle.
• Returned to a light assets business model, reducing inventory pressure and operating costs to improve competitive advantage.

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

• Environmental Protection
• Social Responsibility
• Governance
• Employee Development and Training
• Customer Satisfaction
• Supplier Development
• Use of Natural Resources
• Employee Remuneration, Benefits and Rights

Environmental Achievements

• Reduced energy consumption from 985,100 kWh in 2023 to 864,620 kWh in 2024.
• Reduced water consumption from 246.25 cubic meters in 2023 to 212.30 cubic meters in 2024.
• Reduced non-hazardous waste from 1.26 tonnes in 2023 to 1.17 tonnes in 2024.
• Implemented energy-efficient features such as energy-efficient lights and appliances.

Social Achievements

• No work-related injuries in the past three years.
• Provided comprehensive training program for all new employees.
• Regularly provided training and education opportunities for employees.
• Maintained a respectful workplace free from discrimination and harassment.

Governance Achievements

• Established an environmental, social and governance policy.
• Board fully responsible for supervising ESG matters.
• Integrated ESG factors into business operations.
• No legal violations or complaints related to corruption.

Climate Goals & Targets

Environmental Challenges

• Climate change risks affecting business activities.
• Reducing waste generation and impacts to the environment.

Mitigation Strategies

• Improving energy utilization rate and reducing carbon emissions.
• Waste management policies to minimize waste generated.
• Encouraging employees to save paper, recycle, and use electronic files.

Supply Chain Management

Responsible Procurement

• Preliminary assessment on potential suppliers’ credentials.
• Formulating rules for suppliers to comply with (sustainable development and anti-commercial bribery).

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Appendix C2 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (ESG Reporting Guide)