Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Employment and Labor Practices
• Operational Practices
• Community Investment

Environmental Achievements

• Reduced liquid waste by approximately 75,637 tonnes or 17.36% compared to the prior year.
• Reduced non-hazardous solid waste by approximately 64 tonnes or 17.25% compared to the prior year.
• Reduced gasoline consumption by approximately 58,454 liters or 22.49% compared to the prior year.
• Reduced diesel consumption by approximately 6,590 liters or 14.01% compared to the prior year.
• Reduced water consumption by approximately 72,957 tonnes or 7.19% compared to the prior year.

Social Achievements

• Established a fair, reasonable, and competitive compensation system.
• Implemented policies to protect labor rights and prevent child and forced labor.
• Organized regular employee gatherings to enhance cohesion and reduce work stress.
• Provided various training programs for employees at different positions.

Governance Achievements

• Implemented internal policies to clarify ethical standards of conduct and prevent commercial bribery.
• No legal action against the Group and employees for corruption during the reporting period.

Climate Goals & Targets

Environmental Challenges

• Increase in electricity consumption due to increased production at the orthopedic material plant.
• Maintaining the quality of products to meet increasing customer demands.

Mitigation Strategies

• Implemented energy-saving measures in offices and plants.
• Improved environmental protection facilities in production plants.
• Implemented effective quality control measures and regularly reviewed production processes.

Supply Chain Management

Responsible Procurement

• Strict internal rules and regulations, a review system for supplier selection, and a “list of qualified suppliers”.

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

Awards & Recognition

• Weihai Key Laboratory Certificate
• State-level corporate technology center
• National professionalized creativity space demonstration list
• High-tech enterprise (Shandong Province)

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Employment and Labor Practices
• Operating Practices
• Community Investment

Environmental Achievements

• Reduced hazardous wastewater generation by approximately 4.02 tonnes or 80.56% compared to the previous year.
• Reduced non-hazardous wastewater generation by approximately 141,537.94 tonnes or 0.52% compared to the previous year.
• Decreased gasoline consumption by approximately 7,831.02 tonnes or 3.29% compared to the previous year.
• Decreased electricity consumption by approximately 7,085.28 tonnes or 5.45% compared to the previous year.
• Reduced water resource consumption by approximately 172,576.14 tonnes or 0.63% compared to the previous year.

Social Achievements

• No violations of laws and regulations related to child and forced labor.
• Established a fair, reasonable, and competitive remuneration system.
• Provided various employee benefits including dormitories, canteens, shuttle services, and festive gifts.
• Organized various leisure activities to enhance employee cohesion and reduce work stress.
• Maintained employee benefits and avoided layoffs during the COVID-19 pandemic.

Governance Achievements

• Established a rigorous management system for air pollution prevention and control.
• Implemented a management system for wastewater disposal based on the Water Pollution Prevention and Control Law of the People’s Republic of China.
• Formulated relevant management systems to monitor and manage solid waste.
• Implemented a zero-tolerance policy towards corruption, bribery, and extortion.
• No legal litigation involving corruption of the Group or its employees.

Climate Goals & Targets

Environmental Challenges

• Managing waste gas, wastewater, and solid waste generated during operations.
• Maintaining stable relationships with suppliers.
• Ensuring product quality meets customer demands.
• Maintaining high ethical standards and preventing corruption.

Mitigation Strategies

• Established safety technology departments to supervise environmental protection policies.
• Optimized environmental protection and pollution prevention measures and equipment.
• Established a rigorous management system for air pollution prevention and control.
• Implemented a management system for wastewater disposal.
• Formulated relevant management systems to monitor and manage solid waste.
• Implemented a zero-tolerance policy towards corruption, bribery, and extortion.
• Regularly reviewed employment regulations to ensure compliance with labor laws.

Supply Chain Management

Supplier Audits: Annual review of qualified supplier list.

Responsible Procurement

• Assessment of supplier quality and ethical standards.
• Establishment of a qualified supplier list.

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 Protection
• Resource Management
• Employee Well-being
• Community Well-being
• Supply Chain Management
• Product Responsibility
• Anti-corruption
• Occupational Health and Safety
• Employee Training and Development
• Labor Standards

Environmental Achievements

• Reduced gasoline consumption by approximately 60%
• Achieved target of reducing non-hazardous wastewater generation intensity by 2%
• Reduced paper consumption by approximately 3.68%
• Achieved target of reducing water consumption by 2%

Social Achievements

• Hired more than 700 employees with physical disabilities
• Organized various leisure activities for employees
• Provided various training programs for employees, including safety training, skills training, and management training
• Maintained zero work-related fatalities for 2.75 years at Argon Medical
• No reduction in employee benefits or layoffs during the COVID-19 pandemic

Governance Achievements

• Established a rigorous management system for air pollution prevention and control
• Established a management system for wastewater disposal
• Established a management system for solid waste disposal
• Implemented strict internal rules and regulations for supplier selection and management
• Implemented a zero-tolerance policy towards corruption, bribery, and extortion

Climate Goals & Targets

Environmental Challenges

• Increase in hazardous wastewater due to change in waste phosphoric acid handling and plant maintenance
• Increase in hazardous solid waste due to update of hazardous waste list
• Increase in natural gas consumption due to new plant expansion and equipment commissioning
• Potential risks associated with climate change and related government regulations

Mitigation Strategies

• Implemented various measures to conserve gasoline, diesel, natural gas, electricity, and water
• Engaged professional consultants for waste disposal
• Implemented various source waste reduction measures and training
• Actively implemented low-carbon processes and resource efficiency measures
• Established preventive measures and whistle-blowing procedures against corruption

Supply Chain Management

Supplier Audits: Annual review of qualified supplier list

Responsible Procurement

• Assessment of supplier quality and ethical standards
• Requirement for accredited qualifications, good internal management systems, stable quality, punctual delivery, and legal compliance

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Changes in government policies and regulations

Opportunities

• Development of energy-efficient products and processes

Reporting Standards

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

Certifications: ISO 13485 (Argon Medical)

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Employment and Labour Practices
• Operating Practices
• Community Investment

Environmental Achievements

• Domestic companies in the PRC conducted compulsory clean production reviews and proposed feasible clean production plans, rated as advanced level of clean production in the PRC.
• Reduced paper consumption by approximately 5.12 tonnes or 11.51% compared to the previous year.
• Achieved target to reduce water consumption intensity by 2% compared to the previous year.

Social Achievements

• Established a fair, reasonable and competitive remuneration system.
• Provided various employee benefits including dormitories, canteens, shuttle service, and more.
• Organized various leisure activities to enhance employee cohesion and reduce work stress.

Governance Achievements

• Established a clear ESG governance structure with defined duties and responsibilities.
• Implemented “WEGO Ten Articles” to combat corruption and uphold integrity.
• No legal litigation involving corruption of the Group or its employees during the reporting period.

Climate Goals & Targets

Environmental Challenges

• Rising global inflation and interest rates created a difficult economic situation.
• Climate change risks, including extreme weather events and potential damage to assets.
• Potential regulatory changes related to climate change that may increase operating costs.

Mitigation Strategies

• Continuous assessment of climate risks and studies on adaptation methods.
• Implementation of low-carbon processes, resource reduction, and resource efficiency measures to reduce greenhouse gas emissions.
• Formulation of scientific, reasonable, and realistic goals for reducing greenhouse gas emissions and responding to regulatory policies.

Supply Chain Management

Responsible Procurement

• Assessment of supplier quality and ethical standards
• Establishment of a list of qualified suppliers
• Annual contracts and long-term quality standard agreements with critical suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Flooding

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: Appendix C2 to the Listing Rules of the Stock Exchange of Hong Kong Limited

Environmental Metrics

ESG Focus Areas

• Energy conservation and low carbon
• Resource and emission management
• Compliance management
• Gender equality
• Sustainable supply chain
• Corporate governance
• Corporate social responsibility

Environmental Achievements

• Launched energy management platform to monitor and optimize energy consumption
• Promoting the construction of “zero-waste factory” for resource recycling
• Selected as a pilot enterprise for green, low-carbon and high-quality development in Shandong Province

Social Achievements

• Weihai Jierui, a subsidiary, provides employment opportunities for people with disabilities
• "Conch Girl" project donated sanitary products to low-income families, benefiting more than 2,100 infants and young children
• Assisted Weihai City’s charity serious illness relief project, benefiting nearly 200 seriously ill patients

Governance Achievements

• Adherence to compliance management, fighting against corruption, promoting integrity and fair competition
• Increased the proportion of female on boards and senior management
• Implementation of core values of "conscience, integrity and loyalty" in corporate social responsibility

Climate Goals & Targets

Environmental Challenges

• Slight decline in China market for Argon's main products
• Price drops affecting product revenue and profit growth due to centralized procurement
• Not disclosed

Mitigation Strategies

• Creating a more stable global supply chain with Chinese factories
• Improving product mix and expanding new business areas
• Promoting automated production and domestic substitution to reduce manufacturing costs

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Seeking supply chain partners with high ethical standards and quality
• Strengthening supplier management, and promoting common development

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