Climate Change Data

Environmental Metrics

ESG Focus Areas

• Emissions
• Use of Resources
• The Environment and Natural Resources
• Climate Change
• Employment and Labour Practices
• Health and Safety
• Training and Development
• Labour Standards
• Supply Chain Management
• Product/Service Responsibility
• Anti-corruption
• Community Investment

Environmental Achievements

• Controlled energy consumption for production well within 100 kWh per square metre of product
• Controlled waste disposal to a minimum by encouraging reduction, reuse and recycling

Social Achievements

• No work-related fatalities in the past three years
• No lost days due to work injury in the reporting period
• Compliance with relevant laws and regulations relating to preventing child and forced labour

Governance Achievements

• Established whistle-blowing channels for corruption issues
• Compliance with relevant laws and regulations relating to bribery, extortion, fraud and money laundering

Climate Goals & Targets

Environmental Challenges

• Extreme weather events as a possible threat resulting from climate change

Mitigation Strategies

• Established mitigation measures to minimise the adverse effect caused by extreme weather events on the Company’s operation

Supply Chain Management

Supplier Audits: Annual review of all suppliers

Responsible Procurement

• Environmental protection
• Occupational safety and health
• Labour standards
• Business ethics

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: The Stock Exchange of Hong Kong Limited 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

Environmental Metrics

ESG Focus Areas

• Occupational Health and Safety
• Procurement and Supply Chain Management
• Product Quality
• Product Safety
• Service Quality
• Employee Benefits and Welfare
• Corporate Governance and Risk Management
• Waste and Recyclables Management
• Packaging Material Management
• Talent Management & Development

Environmental Achievements

• Reduced indirect greenhouse gas emission from electricity consumption by prioritizing the adoption of energy-efficient equipment and lighting arrangements.
• Controlled energy consumption for production well within 100 kWh per square metre of product.

Social Achievements

• No work-related fatalities in the past three years.
• No lost days due to work injuries in 2021.
• Full compliance with relevant laws and regulations regarding employee benefits and welfare.

Governance Achievements

• Established a fraud risk assessment and whistleblowing policy in 2019.
• Full compliance with relevant laws and regulations relating to anti-corruption.

Climate Goals & Targets

Environmental Challenges

• Difficulty arranging training courses and workshops due to social distancing measures and new workplace arrangements during the COVID-19 pandemic.

Mitigation Strategies

• Prioritized employee health and well-being.
• Delayed investment in information security and personal data protection due to manpower constraints and upcoming workplace relocation.

Supply Chain Management

Supplier Audits: Annual review of all suppliers

Responsible Procurement

• Compliance with requirements for environmental protection, occupational safety and health, labour standards, and business ethics.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: The Stock Exchange of Hong Kong's Environmental, Social and Governance (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

Environmental Metrics

ESG Focus Areas

• Occupational Health and Safety
• Product Quality
• Employee Benefits and Welfare
• Procurement and Supply Chain Management
• Product Safety
• Product Innovation
• Service Quality
• Packaging Material Management
• Talent Development
• Energy Efficiency
• Waste Air Management
• Information Security & Personal Data Protection
• Water Management
• Waste and Recyclables Management
• Effluent Management
• Green Procurement
• GHG Emissions & Climate Change
• Environmental Training

Environmental Achievements

• Reduced water consumption from 10,558.3 m3 in 2021 to 8,745.0 m3 in 2022
• Reduced indirect energy consumption (electricity) from 312.3 thousand kWh in 2021 to 334.9 thousand kWh in 2022 (Note: This seems counterintuitive and requires further investigation from the original report)
• Reduced GHG emissions from 217.7 tCO2-eq in 2021 to 210.4 tCO2-eq in 2022

Social Achievements

• Zero work-related fatalities in 2022
• Zero lost days due to work injury in 2022
• Provided safety training and encouraged participation in various health and safety activities
• Total of 37 employees attended training courses for a total of 111 hours in 2022
• Zero product-related complaints received from customers in 2022
• Zero service-related complaints received in 2022
• Donated RMB10,000 to the Shanghai government to support their community development plan

Governance Achievements

• Full compliance with relevant laws and regulations relating to preventing child and forced labour
• Full compliance with relevant laws and regulations, such as the Anti-Corruption Commission Act in Malaysia, and the Anti-unfair Competition Law of the People’s Republic of China

Climate Goals & Targets

Environmental Challenges

• Ongoing US-China trade tensions creating an unpredictable environment
• Delay in obtaining official approval for a new production facility in Malaysia, pushing back the full operation date
• Difficulty finding suitable premises for a new production facility in the PRC
• Temporary halt of production and projects in Shanghai due to COVID-19 lockdown restrictions
• Increase in raw material prices

Mitigation Strategies

• Proactive measures to manage uncertainties and mitigate their impact
• Extended rental period of temporary factory in PRC until November 2023
• Procuring semi-finished wall and ceiling panels from suppliers outside Shanghai during lockdown
• Hiring short-term production staff and increasing production hours after lockdown

Supply Chain Management

Supplier Audits: Annual

Responsible Procurement

• Specific standards regarding environmental protection, occupational safety and health, labour standards, and business ethics

Climate-Related Risks & Opportunities

Physical Risks

• Floods, typhoons, and strong winds

Transition Risks

• Rising demand for low carbon products and operations, stricter requirements

Opportunities

• Innovative solutions to transform risks into opportunities

Reporting Standards

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

Certifications: ISO 9001:2015

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

• Greenhouse Gas (GHG) Emissions & Climate Change
• Waste Air Management
• Effluent Management
• Waste & Recyclables Management
• Packaging Material Management
• Water Management
• Procurement & Supply Chain Management
• Service Quality
• Information Security & Personal Data Protection
• Intellectual Property Right Protection
• Product Innovation
• Caring for the Community
• Talent Management & Development
• Employee Benefits & Welfare
• Occupational Health & Safety
• Product Quality
• Product Safety
• Anti-Competitive Practice
• Corporate Governance & Risk Management

Environmental Achievements

• Successfully mitigated supply chain tensions
• Enhanced occupational health and safety measures for employees
• Maintained compliance with laws and regulations without any reported violations
• No fatalities in the regions where we operate, namely the PRC, the Philippines, and Malaysia.

Social Achievements

• Successfully mitigated supply chain tensions
• Enhanced occupational health and safety measures for employees
• Maintained compliance with laws and regulations without any reported violations
• No fatalities in the regions where we operate, namely the PRC, the Philippines, and Malaysia.

Governance Achievements

• Established a comprehensive fraud risk assessment and whistleblowing policy
• Implemented rigorous procedures during the hiring process, conducting thorough checks of supporting documents related to applicants’ age and adopting effective procedures to ensure that candidates have reached the minimum statutory age for work
• Prohibit any form of forced labour or work. Our commitment is to ensure that all employees engage in labour willingly, without any use of force, bondage, punishment, imprisonment, or threats of violence.

Climate Goals & Targets

Environmental Challenges

• US-China trade tensions affecting investments and construction progress for semiconductor facilities in the PRC
• Uncertain investment climate in the semiconductor industry due to economic uncertainties
• Weak demand for end-making electronics, elevated inventory levels and weaker prices of microchips
• Drop in demand for ancillary business due to economic headwinds and uncertain investment environment in the semiconductor industry

Mitigation Strategies

• Acquired a land parcel in Malaysia for a new production facility
• Renewed lease of temporary factory in PRC while seeking suitable premises for a second factory
• Strategic initiative to diversify market reach (successful growth in Malaysia)
• Bulk purchase of raw materials to cater for projects in 2024
• Prioritisation of fulfilling overwhelming demand for cleanroom equipment projects

Supply Chain Management

Supplier Audits: Annual

Responsible Procurement

• Suppliers meet criteria related to environmental protection, occupational safety and health, labour standards, and business ethics

Climate-Related Risks & Opportunities

Physical Risks

• Floods, typhoons, and strong winds

Transition Risks

• Increasing demand for low-carbon products and operations, coupled with stricter requirements

Opportunities

• Innovative solutions to mitigate climate-related risks and transform them into opportunities

Reporting Standards

Frameworks Used: Appendix C2 of the Main Board Listing Rules of The Stock Exchange of Hong Kong Limited

Certifications: ISO 9001:2015

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed