Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Using electricity-saving light bulbs or tube lights; Lights and air conditioners are turned off when they are not in use; Electronic devices are set at energy-saving mode; Using email for internal approval to minimize the printing needs; Using double-sided printing and recycled paper; Eco-friendly papers are selected for printing the Annual Reports and Interim Reports; and Encourage staff for recycling plastic and paper.

Social Achievements

• Maintained a professional team of employees; All employees have employment contracts; Remuneration packages are reviewed regularly; Discretionary bonuses granted based on operation results and individual performance; Employees are entitled to medical insurance, participation in the mandatory provident fund and various types of paid leave; Complied with all relevant labour laws and regulations; Strictly prohibits the use of child or forced labour; No work related fatalities or lost days due to work injury were recorded.

Governance Achievements

• Abided by all the relevant anti-corruption laws in both Hong Kong and the PRC; Adopted the Model Code as set out in Appendix 10 to the Listing Rules to regulate the directors’ securities transactions; All Directors confirmed full compliance with the Model Code.

Climate Goals & Targets

Environmental Challenges

• Scalability and diversification challenges in Shanghai operation; Slowdown in China's economic development making business growth challenging.

Mitigation Strategies

• Efforts to improve existing products' performance and price; Diversifying into other product lines to diversify revenue sources.

Supply Chain Management

Responsible Procurement

• Transparent and competitive bidding system; Rigorous internal control measures; Consideration of price, quality, specification, and after-sales service; Background checks on potential suppliers; Compliance with Environment Protection Law of the PRC.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ESG Reporting Guide set out in Appendix 27 to the Rules Governing the Listing of Securities

Environmental Metrics

ESG Focus Areas

• Emissions
• Waste Management
• Greenhouse Gas (GHG) Emission
• Use of Resources
• Energy Consumption
• Water Consumption
• Use of Packaging Materials
• The Environment and Environmental Impact Management
• Natural Resources
• Noise Pollution
• Landscape and Natural Habitat
• Employment
• Employee Benefits
• Equal Opportunities Policies
• Health and Safety
• Occupational Health and Safety
• Development and Training
• Staff Development and Training
• Labor Standards
• Prevention of Child Labor or Forced Labor
• Supply Chain Management
• Environmental and Social Risk Management of Supply Chain
• Product Responsibility
• Quality and Safety of Products and Services
• Intellectual Property Management
• Anti-Corruption
• Prevention of Corruption and Fraud
• Community Investment
• Contributions to Society

Environmental Achievements

• Reduced total GHG emissions to approximately 15.6 tonnes in 2019 (2018: 15.2 tonnes). Implemented measures to mitigate energy consumption (turning off AC at night, using LED lights, etc.) and waste reduction (promoting green communication, double-side printing, etc.).

Social Achievements

• Complied with relevant employment and labor laws and regulations in PRC and Hong Kong. Established occupational health and safety management system. Provided staff development and training courses. Implemented Supplier Management Policy to strengthen supplier selection and evaluation, focusing on occupational health and safety, employee rights, environmental protection, and corporate social responsibility.

Governance Achievements

• Implemented the Prevention of Commercial Bribery Management Policy, strengthening internal control mechanisms and anti-corruption efforts. Established reporting mechanisms for suspected wrongdoing. Complied with Hong Kong’s Prevention of Bribery Ordinance and Mainland’s Corruption Ordinance.

Climate Goals & Targets

Environmental Challenges

• Intensifying competition in the PRC IC market due to technology advances, cost increases, and changing customer demands. US-China trade war impacting customer confidence and supply chain stability. Higher default rates in financial leasing and money lending due to economic uncertainty. COVID-19 outbreak interrupting operations in the PRC.

Mitigation Strategies

• Improving product competitiveness, developing new product lines and sales channels, and implementing cost control measures in the IC business. Cautious and prudent business approach, focusing on recovering receivables and exploring options to increase recoverability (bankruptcy petitions, collateral requests, factoring services, asset settlements). Stricter policies to identify customers and negotiate leasing deals in financial leasing. Scaling down money lending operations in Hong Kong. Conditionally agreed to dispose of interests in Shenzhen Qiping (2D-3D conversion display products) with a buy-back option.

Supply Chain Management

Supplier Audits: Annual reviews and evaluations focusing on occupational health and safety, employee rights, environmental protection, and corporate social responsibility.

Responsible Procurement

• Supplier Management Policy, comparing at least three suppliers, considering operational and compliance records and CSR commitment.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: ESG Reporting Guide (Appendix 27 of the Listing Rules)

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

• Compensation and benefits
• Training and development
• Purchasing practices
• Intellectual property protection

Environmental Achievements

• Regularly maintained and serviced the Company’s vehicle fleet to maintain efficient operation of the vehicles and to prevent the vehicles from consuming more fuel and generating extra air pollutants due to reduced performance.
• Ensured that no idling vehicles run their engines to further reduce vehicle emissions.
• Implemented a “paperless system” concept to replace the paper-based office administration system.
• Used e-mail and electronic workflow to transmit information as much as possible to reduce paper usage.
• Set computers and printers to double-sided printing and ink-saving mode by default.

Social Achievements

• Provides competitive remuneration and diversified benefits packages to attract talented people and motivate employees to work efficiently.
• Conducts annual performance appraisals of its employees and adjusts their salaries and bonuses based on their performance and results of the Company.
• Provides pension, medical, unemployment insurance and housing provident fund in accordance with the relevant national regulations, as well as additional protection, including commercial insurance for outpatient and emergency medical treatment.
• Arranges annual physical examinations for its employees, and female married employees enjoy special gynecological examination programs to fully protect the health of its employees.
• Provides lunch and transportation allowance for its employees to reduce their economic expenses.

Governance Achievements

• Established a comprehensive Supplier Management Policy to regulate supplier management and improve operational standards.
• Implemented the Prevention of Commercial Bribery Management Policy, strengthening its internal control mechanism, anti-corruption and anti-bribery work.
• Established a reporting mechanism, including the establishment of an inspection team and the establishment of a channel for evaluation and reporting.

Climate Goals & Targets

Environmental Challenges

• Competition in the IC market was becoming more intensive, due to swift advance in technology, increase in cost of production and change in customers’ demands, which added further pressure on profit margins.
• The ongoing COVID-19 pandemic caused significant impacts on the businesses of the Group.
• The local economy in the Island of Saipan was not promising due to severe impact of the COVID-19 pandemic.

Mitigation Strategies

• Adopted a customer-oriented strategy and focused on improving the service quality, as well as expanding the service categories, with an aim to build up competitive advantages to tackle with external competitions.
• Amended their usual business strategies, such as re-scheduling the production process or investing more in hygiene facilities.
• Adopted a passive investment strategy for this business segment for the year.

Supply Chain Management

Supplier Audits: 73 suppliers, annual reviews and evaluations on various aspects, including occupational health and safety, employee rights protection, environmental protection and corporate social responsibility.

Responsible Procurement

• Compares at least three different companies and uses their product quality, delivery, price and compliance as evaluation criteria.
• Prioritizes suppliers with ISO50001, ISO14001 certifications, and low carbon product certification.
• Requires suppliers to sign environmental protection Undertaking Letter.
• Gives preference to suppliers who have a sound supply chain management system and follow international standards related to social risk management such as ISO26000.
• Advocates green purchasing strategies.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

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

Certifications: ISO9001

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 Compliance
• Employment Compliance
• Operational Compliance
• Customer Privacy Protection
• Anti-corruption

Environmental Achievements

• Reduced vehicle emissions of nitrogen oxides, sulfur oxide, and particulate matter (specific figures provided in the report)
• Reduced non-hazardous waste generation (specific figures provided in the report)
• Implemented various energy-saving measures in offices (details provided)

Social Achievements

• Maintained compliance with employment laws and regulations
• Offered competitive remuneration and benefits packages
• No work-related fatalities or lost workdays due to injuries in 2022

Governance Achievements

• Established a comprehensive Supplier Management Policy
• Implemented the Prevention of Commercial Bribery Management Policy
• Established a reporting mechanism for suspected wrongdoing or corruption

Climate Goals & Targets

Environmental Challenges

• Intense competition in the IC market
• Challenges in the aviation industry due to the COVID-19 pandemic (pilot and crew shortages, aircraft part delays, quarantine measures)
• Global economic uncertainties due to the COVID-19 pandemic and the Russia-Ukraine war

Mitigation Strategies

• Formulated strategies to mitigate negative impacts and enhance shareholder value (cost control, premier executive jet management, marketing and promotion of yacht management, collaboration with yacht manufacturers, building a professional team)
• Implementing ongoing reform to maintain core businesses, exit from underperforming businesses, and seek new opportunities
• Adopting cautious approaches in 2023, focusing on core businesses with higher profit margins

Supply Chain Management

Supplier Audits: 73 suppliers, subject to annual reviews and evaluations on occupational health and safety, employee rights protection, environmental protection, and corporate social responsibility

Responsible Procurement

• Supplier Management Policy
• Environmental protection Undertaking Letter
• Green purchasing strategies (prioritizing products with lowest environmental impact)

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

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

Certifications: ISO 9001

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
• Valuing Employees
• Supply Chain Management
• Product and Services Quality Management
• Anti-corruption

Environmental Achievements

• Reduced vehicle air pollutant emissions (Nitrogen oxides, Sulfur oxides, and Particulate matter)
• Reduced non-hazardous waste generation
• Reduced greenhouse gas emissions (Scope 1 and 2)

Social Achievements

• Maintained a 1:1 ratio of male and female employees in 2023
• No work-related fatalities in the last three years
• No lost workdays due to work-related injuries in 2023
• Implemented a comprehensive Supplier Management Policy to regulate supplier management and improve operational standards.

Governance Achievements

• Established clear ESG duties and responsibilities to directly oversee the Group’s ESG-related matters and work.
• Engaged a third party professional consultant to assist in identifying ESG issues and provide advice on the Group’s ESG performance.
• Implemented the Prevention of Commercial Bribery Management Policy, strengthening its internal control mechanism, anti-corruption and anti-bribery work.

Climate Goals & Targets

Environmental Challenges

• Prolonged economic recession impacting executive jet management and yacht businesses.
• Intensifying competition in the IC market.
• Cancellation of a purchase order for five 46-meter super yachts.
• Frozen cash deposit in a bank account due to a legal issue with a supplier.

Mitigation Strategies

• Prudent approach by closely monitoring its business portfolio and implementing various strategies and decisive measures to reform.
• Reducing costs and enhancing efficiencies across all business segments.
• Prioritising core businesses with higher profit margins.
• Exploring business opportunities in different segments.
• Actively promoting yacht offerings and expanding its reach to other types of vessels.
• Working with legal advisors to resolve the frozen account issue.

Supply Chain Management

Supplier Audits: 73 suppliers, annual reviews and evaluations on various aspects, including occupational health and safety, employee rights protection, environmental protection and corporate social responsibility.

Responsible Procurement

• Prioritising suppliers with ISO50001, ISO14001 certifications and low carbon product certification.
• Requiring suppliers to sign environmental protection Undertaking Letter.
• Prioritising suppliers with sound supply chain management system and follow international standards related to social risk management such as ISO26000.
• Advocating green purchasing strategies.

Climate-Related Risks & Opportunities

Reporting Standards

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

Certifications: ISO9001