Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Management
• Working Conditions
• Health and Safety
• Supply Chain Management
• Product Responsibility
• Anti-Corruption
• Community Involvement

Environmental Achievements

• Installed smoke and dust treatment facility and a sewage facility at our production site to reduce environmental impacts of the smoke and wastewater produced during the feedstock production process.
• Installed dust collectors in smashing machines, Installed smoke and dust treatment facility, Installed air purifier to improve indoor air quality.
• Reduce unnecessary use of air conditioning and lighting, Maintain room temperature of 25.5 degrees Celsius, Set up a dedicated team to coordinate energy management across the company.
• Promote printer cartridge and paper recycling, Installed solid waste separation and collection facilities, Water in the boiler and steam water are recycled and reused, Installed sewage treatment facility, Used water goes through a biological treatment process in the septic tanks to produce environmentally safe treated wastewater, Installed automated water taps to prevent waste of water

Social Achievements

• Established a standard procedure in confirming the identity of new employees to avoid the recruitment of child labor, complying with relevant labor laws and regulations.
• Provide holidays such as marriage leave, bereavement leave and maternity leave as per the labor laws. Provide different kinds of insurances, including the endowment insurance, medical insurance, occupational injury insurance, as well as Mandatory Provident Fund retirement benefits scheme for Hong Kong employees and central pension scheme for PRC employees.
• Organize birthday celebration meals and cultural activities. All the labor supplies including uniforms, mask and gloves are distributed to each of the employees centrally.
• Implement safety measures such as distribution of personal protective gears to all of our frontline employees and providing regular health checks to staff who are exposed to hazardous working environments.
• Total hours for safety training reached 527 hours, including 201 hours for management staff and 326 hours for front-line staff respectively, with a participation rate of 100%.
• Implemented a bribery prevention management guideline and provided training to employees about anti-money laundering.

Governance Achievements

• Established a credit committee to approve and oversee the credit policy of the Group’s money lending business and to monitor our loan portfolio.
• Adopted a credit policy for the credit approval procedures.
• Strengthened internal control policy and took a prudent approach to develop the securities brokerage and margin financing business to reduce the credit risk from the margin clients.

Climate Goals & Targets

Environmental Challenges

• Increasingly stringent environmental protection laws in the PRC requiring large-scale capital investment to upgrade infrastructure and facilities.
• Physical damage to certain buildings relating to the live swine breeding business.
• Competitive money lending market in Hong Kong.
• Sharp decline in share price of certain stocks held as collateral for margin clients (June Incident).
• Concerns raised by the SFC about margin loan operations.

Mitigation Strategies

• Disposed of 100% equity interest in a subsidiary engaged in breeding and sale of live swine.
• Used surplus liquidity to fund money lending business.
• Targeted well-heeled and reputational customers for personal loans and well-established companies for business loans.
• Implemented strict credit check procedures.
• Strengthened internal control policy and took a prudent approach to develop the securities brokerage and margin financing business to reduce the credit risk from the margin clients.
• Undertook to address SFC concerns within a reasonable period of time.

Supply Chain Management

Supplier Audits: 13 suppliers evaluated annually

Responsible Procurement

• Suppliers evaluated annually based on product quality, technologies, and financial status. Suppliers not meeting standards are removed.

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced packaging materials usage by approximately 50%
• Smoke and dust emissions as well as the wastewater discharged by the Group were able to meet the emission standards.
• All waste oil and approximately 60% of food waste were collected by the registered waste cooking oil collectors and the food waste recycling companies respectively.

Social Achievements

• Organised safety and development training for employees
• Offered marriage leave, compassionate leave and maternity leave according to applicable labour laws
• Provided insurance including endowment insurance, medical insurance, occupational injury insurance, as well as Mandatory Provident Fund retirement benefits scheme for Hong Kong employees and central pension scheme for the PRC employees
• Encouraged employees to participate in charitable activities and successfully raised HKD$11,000 for Yan Oi Tong Charity

Governance Achievements

• Established a credit committee for credit approval procedures
• Adopted a credit policy for the credit approval procedures
• Established a board diversity policy
• Complied with the code provisions of the Corporate Governance Code contained in Appendix 15 to the GEM Listing Rules

Climate Goals & Targets

Environmental Challenges

• Swine fever outbreak in the PRC led to a decrease in sales of feedstock products
• COVID-19 outbreak affected restaurants, kindergarten and pre-school, causing student withdrawals and business disruptions
• Political unrest in Hong Kong impacted the catering industry
• High competition in the money lending business in Hong Kong

Mitigation Strategies

• Reduced operating costs to mitigate uncertainties from COVID-19
• Allocated resources to food and beverage business to maintain income sources
• Implemented measures to improve operational efficiency and strengthen revenue base
• Temporarily suspended operations of feedstock products business for reassessment
• Established a credit committee and adopted a credit policy to manage credit risks

Supply Chain Management

Supplier Audits: Annual assessment

Responsible Procurement

• Suppliers are selected on the basis of quality of materials and products, equipment reliability, etc.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ESG Reporting Guide, Appendix 20 to the Rules Governing the Listing of Securities on GEM of The Stock Exchange of Hong Kong Limited

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Employee Empowerment
• Operations
• Customer Services
• Community Engagement

Environmental Achievements

• Reduced GHG emissions by 2% from 2020 to 2021
• Achieved 2% usage of LED lights by 2021
• Reduced non-hazardous waste by 0.00002 tons per thousand Hong Kong Dollars revenue from 2020 to 2021
• Reduced water consumption by 3,609.25 tons from 2020 to 2021

Social Achievements

• Implemented various safety guidelines for frontline staff
• Provided anti-corruption and anti-money laundering training for staff
• Made charitable donations amounting to HK$330,740

Governance Achievements

• Established a credit committee for credit approval procedures
• Established a set of safety instructions and adopted appropriate measures to prevent possible hazards to consumers
• Implemented stringent quality control system to select qualified suppliers

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting business operations
• Increased employee turnover rate (76%)
• Competition in the education and alcoholic beverage distribution industries
• Credit risk management for loans and margin financing

Mitigation Strategies

• Implemented cost control measures
• Expanded delivery and takeaway business
• Cooperated with food delivery apps
• Negotiated rent concessions with landlords
• Strengthened credit risk management and control mechanisms
• Refined loan approval procedures
• Monitored market situation and adjusted interest rates and loan-to-value ratios

Supply Chain Management

Supplier Audits: Annual evaluation of suppliers

Responsible Procurement

• Suppliers with ISO 9001, ISO 14001, and OHSAS 18001 certifications get priority

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Appendix 20 of the Rules Governing the Listing of Securities on GEM 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

• Emissions management
• Energy and resources management
• Greenhouse gas emissions
• Environmental compliance
• Climate change
• Prevention of child labour and forced labour
• Community involvement
• Talent management
• Occupational health and safety
• Training and development
• Compensation, right and interests
• Information security and privacy
• Supply chain management
• Health and safety of products
• Quality of products and services
• Customer satisfaction
• Business ethics
• Anti-corruption
• Operational compliance
• Economic performance

Environmental Achievements

• Reduced energy consumption mainly due to the closure of a restaurant and the disposal of food and beverage business in Singapore
• Part of the food waste and all of the waste oil were recycled and collected by the environmental parties.
• Established environmental targets on GHG emissions, energy efficiency, waste and water use.

Social Achievements

• Established a set of safety instructions and adopted appropriate measures to prevent possible hazards to consumers.
• Engaged with employees and customers to keep everyone safe and healthy during the COVID-19 pandemic.
• Arranged various activities to bring employees closer to the Company, including festival gatherings and birthday parties.

Governance Achievements

• Established a Climate Change Policy for guiding the Group in combating climate change.
• Implemented a stringent quality control system to select qualified suppliers.
• Adopted a board diversity policy.

Climate Goals & Targets

Environmental Challenges

• Strict social distancing measures and staff infections leading to temporary and permanent closures for many shops and services.
• Ongoing economic uncertainties, such as US-China tensions and interest rate hikes.
• Weakening performance of alcoholic beverage distribution and miscellaneous business.
• Declining birth rate, emigration trends, and rising labour costs in children education services.
• Intense competition and high operating costs in the food and beverage industry.
• Difficulties in recruitment and retention of qualified employees.

Mitigation Strategies

• Undertaken consolidation and internal operations enhancement.
• Implemented initiatives aimed at improving customer satisfaction, food quality, and operational efficiency.
• Cautious about the loan-to-value ratio of collaterals and the quality of margin finance clients.
• Building a competent sales team while keeping costs at a minimal level.
• Enriched the content of programmes and extracurricular activities in children education services.
• Refining existing brands, launching new brands, and finding commercially attractive locations for new restaurants.
• Strengthening the overall credit risk management and control mechanism in its money lending business.

Supply Chain Management

Supplier Audits: 120 suppliers/year

Responsible Procurement

• Suppliers who are ISO 9001, ISO 14001, and OHSAS 18001 certified get priority.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: HKEX ESG Reporting Guide

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed