Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Social Responsibility
• Corporate Governance

Environmental Achievements

• Achieved LEED GOLD standard for Rosedale Hotel Kowloon and yoo Residence
• Reduced paper waste through various measures (e.g., electronic substitution, double-sided printing)
• Rosedale Hotel Kowloon received Platinum Award from the Environment Bureau for its participation in the Charter on External Lighting

Social Achievements

• Organized annual dinner and festive luncheons for employees
• Presented long service awards to loyal staff
• Donated used computers to charitable organizations
• Sponsored a table tennis team
• Provided internship program for hotel management students

Governance Achievements

• Established an ESG reporting team
• Developed a structured stakeholder communication system
• Implemented a Code of Conduct and Anti-corruption Policy
• Established delegated committees (Audit, Remuneration, Nomination, Corporate Governance, Investment)

Climate Goals & Targets

Environmental Challenges

• Competition risks in property investment and development markets
• Government cooling measures on property markets
• Potential risks associated with joint ventures and associates
• Global economic uncertainties
• Natural disasters

Mitigation Strategies

• Diversification of investments through joint ventures
• Continuous monitoring of financial positions of joint ventures and associates
• Implementation of robust internal controls and risk management systems
• Close monitoring of foreign exchange risk exposure
• Implementation of green management measures and initiatives

Supply Chain Management

Responsible Procurement

• Fair and Green Procurement Practices

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters

Reporting Standards

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

Certifications: LEED GOLD (Rosedale Hotel Kowloon, yoo Residence), Quality Fresh Water (Rosedale Hotel Kowloon)

Awards & Recognition

• Platinum Award from the Environment Bureau (Rosedale Hotel Kowloon)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Implemented green management measures and initiatives to reduce air emissions, greenhouse gases, waste disposal, and hazardous waste generation.
• Reduced paper consumption by implementing various waste handling and reduction measures.
• Rosedale Hotel Kowloon attained LEED GOLD standard; Le Petit Rosedale Hotel Hong Kong is in the certification process.

Social Achievements

• Developed a comprehensive Human Resources Policy covering recruitment, compensation, working hours, and equal opportunity.
• Implemented various health and safety measures to promote an injury-free culture.
• Strictly followed all labor-related laws and regulations with no non-compliance cases noted.

Governance Achievements

• Adopted the code provisions of the CG Code as its corporate governance code.
• Established an Audit Committee, Remuneration Committee, Nomination Committee, Corporate Governance Committee, and Investment Committee.
• Maintained a sufficient number of independent non-executive Directors.

Climate Goals & Targets

Environmental Challenges

• Cooling measures on property markets may create market pressures to reduce property sale or rental prices.
• Highly competitive industries pose risks including competition from numerous developers and other hotels.
• Laws and regulations may require government approvals or permits, potentially causing project delays.

Mitigation Strategies

• Continuously update and evaluate government policies and formulate appropriate strategies.
• Formulate various operation and marketing strategies to maintain competitiveness.
• Seek professional advice on regulatory changes and monitor compliance through internal policies and checklists.

Supply Chain Management

Responsible Procurement

• Green procurement
• Stringent procedures for supplier selection with regular monitoring and review.

Climate-Related Risks & Opportunities

Reporting Standards

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

Certifications: LEED GOLD (Rosedale Hotel Kowloon)

Awards & Recognition

• Platinum Award from the Environment Bureau (Rosedale Hotel Kowloon)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced paper consumption for work-related purposes by 21.44% from 11.44 tonnes to 9.18 tonnes.
• Rosedale Hotel Kowloon attained LEED GOLD standard, Le Petit Rosedale Hotel attained LEED SILVER standard.
• Rosedale Hotel Kowloon and Le Petit Rosedale Hotel received “Platinum Award” from the Environment Bureau for participation in the “Charter on External Lighting”.

Social Achievements

• Offered adjustable sit-stand converters to employees.
• Provided flexible working hours and distributed protective equipment during the COVID-19 pandemic.
• Rosedale Hotel Kowloon cooperated with Hong Kong Community College in providing an internship program for students.

Governance Achievements

• Complied with all code provisions of the CG Code.
• Established the Audit Committee, the Remuneration Committee, the Nomination Committee, the Corporate Governance Committee and the Investment Committee.
• Maintained a sufficient number of independent non-executive Directors representing more than one-third of the Board.

Climate Goals & Targets

Environmental Challenges

• Drastic deterioration in hotel performance due to COVID-19 and social unrest.
• Significant decrease in fair value of investment properties and share of net losses of joint ventures.
• Significant loss allowance for expected credit loss on loan receivables.

Mitigation Strategies

• Cost-saving measures, including reduction of bonus payment.
• Focus on presale of remaining blocks in Sky Oasis and Grand Oasis, sale of units of Hyde Park and other local redevelopment projects.
• Expansion of businesses to PRC, Macau, Canada and the United Kingdom.

Supply Chain Management

Responsible Procurement

• Stringent procedures and consistent criteria for supplier selection; regular monitoring and review; priority given to FSC-certified products.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions

Reporting Standards

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

Certifications: LEED GOLD (Rosedale Hotel Kowloon), LEED SILVER (Le Petit Rosedale Hotel)

Awards & Recognition

• Platinum Award from the Environment Bureau

Environmental Metrics

ESG Focus Areas

• Emissions
• Waste Management
• Energy Consumption
• Water Consumption
• Employment Practices and Relations
• Workplace Health and Safety
• Talent Development
• Supply Chain Management
• Anti-corruption
• Community Investment
• Climate Change Management

Environmental Achievements

• Reduced carbon dioxide equivalent (CO2e) generated from the Group’s direct operations to 2,610.33 tonnes (2020: 3,863.23 tonnes), with an intensity of 0.01 kg CO2e (2020: 0.022 kg CO2e) per Hong Kong dollar of revenue.
• Achieved zero work-related fatality and zero lost day due to work injury (2020: 41 days).

Social Achievements

• Total employee turnover rate was 16% (2020: 34%).
• Provided sponsorships of approximately HK$2.1 million to the scholarship programmes set up by the Education Bureau of Taishan.

Governance Achievements

• Complied with all the code provisions of the CG Code and applied the principles contained therein.
• No incidents of non-compliance were identified.

Climate Goals & Targets

Environmental Challenges

• Global economic uncertainties, including the impact of the COVID-19 pandemic on Hong Kong, Macau, and the PRC economies.
• Financing uncertainties and challenges in obtaining new financing on favorable terms.
• Cooling measures on property markets.
• Disasters, including climate change and extreme weather conditions.
• Highly competitive industries.
• Risks associated with associates and joint ventures.
• Laws and regulations.
• Currency fluctuations.

Mitigation Strategies

• Submitting monthly updates of financial information to the Directors.
• Being selective and cautious for assessment of business opportunities.
• Closely monitoring the Group’s liquidity and working capital.
• Maintaining close communication with banks.
• Managing the maturity profile of deposits and loans.
• Establishing and maintaining diversified channels of financing.
• Crystalising certain investments to obtain adequate cash.
• Having ongoing update and assessment of government policies.
• Conducting market study and demand analysis.
• Geographical diversification.
• Monitoring and reducing carbon emissions.
• Reviewing and updating business continuity plans.
• Arranging sufficient insurance.
• Discussing business performance and formulating strategies to maintain competitiveness.
• Selecting business partners carefully.
• Maintaining ongoing communications with business partners.
• Incorporating contractual terms and conditions in agreements.
• Monitoring the fulfilment of contractual obligations.
• Continuing monitoring and assessing the impact of regulatory changes.
• Seeking professional advice on regulatory changes.
• Monitoring compliance with laws and regulations.
• Maintaining proper documentation.
• Assessing and monitoring foreign exchange exposure.
• Considering the use of hedging devices.

Supply Chain Management

Responsible Procurement

• The Group gives priority in the selection process to products and services certified by recognised authorities such as FSC.
• Local suppliers are preferred when appropriate.

Climate-Related Risks & Opportunities

Physical Risks

• extreme weather conditions

Reporting Standards

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

Awards & Recognition

• Platinum Award from the EB

Environmental Metrics

ESG Focus Areas

• Emissions
• Waste Management
• Energy Consumption
• Water Consumption
• Climate Change Management
• Employment Practices and Relations
• Workplace Health and Safety
• Talent Development
• Fair and Green Procurement Practices
• Products and Services Standards
• Customer Services
• Data Privacy and Information Security
• Anti-bribery and Anti-corruption
• Community Investment

Environmental Achievements

• Reduced carbon dioxide equivalent (CO2e) generated from direct operations to 1,859.41 tonnes (2021: 2,610.33 tonnes), with an intensity of 0.01 kg CO2e per Hong Kong dollar of revenue.
• Significant reduction in paper consumption for work-related purposes to 6.36 tonnes (2021: 13.35 tonnes).
• Rosedale Hotel Kowloon attained LEED GOLD standard. Over 30% of the hotel’s products and materials were delivered from within 500 miles.
• Rosedale Hotel Kowloon received “Platinum Award” from the Environment Bureau for its participation in the “Charter on External Lighting”.

Social Achievements

• Offered attractive and competitive remuneration packages, reviewed annually.
• Offered other fringe benefits to staff, including preventive check-up scheme, comprehensive medical and life insurance coverage and retirement fund contribution.
• Granted share options to Directors and employees.
• Organised company activities to enhance employees’ sense of belonging.
• Achieved zero work-related fatalities and had 3 lost days due to work injury (2021: 0 day).
• Provided sponsorships of approximately HK$1.9 million to several scholarship programmes.
• Rosedale Hotel Kowloon cooperated with Hong Kong Community College in providing a 3-month internship programme for students.

Governance Achievements

• Maintained high standard of corporate governance practices and procedures.
• Complied with all the code provisions of the CG Code.
• Established a board diversity policy.
• Achieved the target of having a mixed gender Board with at least 1 Director of a different gender on the Board and at least 20% of senior executives and total workforce of a different gender respectively.
• No incidents of non-compliance were identified.

Climate Goals & Targets

Environmental Challenges

• Challenging business environment under the threat of COVID-19 pandemic.
• Keen competition in the property market.
• Adverse impacts on the fair value of properties held by the Group due to the COVID-19 pandemic.
• Significant loss allowance for expected credit loss (ECL) recognised on deposits paid for the acquisition of Paul Y. Engineering Group Limited.
• Continuous adverse impacts on the hotel and leisure businesses due to the COVID-19 pandemic.
• Global economic uncertainties, including the Russian-Ukrainian War, global inflation, and increasing interest rates.
• Highly competitive industries, including numerous developers undertaking property investment and development, pricing pressure, and competition with other hotels.

Mitigation Strategies

• Continuously reviewing its business model and adjusting its agility.
• Focusing on the sale of remaining blocks in Sky Oasis and Grand Oasis in Macau and other local redevelopment projects.
• Stepping up existing businesses further to the PRC, Macau, Canada, and the United Kingdom.
• Being selective and cautious on replenishing the Group’s portfolio when suitable opportunities arise.
• Crystalising certain investments to obtain adequate cash to meet matured debts.
• Monitoring and reducing carbon emissions from day-to-day operations.
• Pursuing green building certifications.
• Strengthening the governance of environmental, social, and governance performance.
• Reviewing and updating business continuity plans and crisis management procedures.
• Arranging sufficient insurance packages.
• Maintaining standard operating procedures and guidelines in response to the pandemic.
• Formulating various operation and marketing strategies to maintain the Group’s competitiveness.
• Selecting business partners carefully and maintaining ongoing communications with them.
• Incorporating contractual terms and conditions in agreements to safeguard the Group’s interests.
• Monitoring the fulfilment of contractual obligations through internal policies and compliance checklists.
• Conducting market study and demand analysis to formulate appropriate strategies.
• Continuously monitoring and assessing the impact of regulatory changes and seeking professional advice if necessary.
• Monitoring compliance with laws and regulations through internal policies and compliance checklists.
• Maintaining proper documentation.
• Considering the use of hedging devices when appropriate.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Stringent procedures and consistent criteria for supplier selection, including cost, quality, and life cycle impacts.
• Regular monitoring and review of supplier sustainability performance.
• Periodic site visits of suppliers.
• Requirement for key contractors to submit site supervision plans, safety management, and quality monitoring proposals.
• Preference for products and services certified by recognised authorities such as FSC.
• Preference for local suppliers when appropriate.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions

Transition Risks

• Policy, legal, technological, and market changes to curtail business operations.

Opportunities

• Development of energy-efficient products

Reporting Standards

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

Certifications: LEED GOLD (Rosedale Hotel Kowloon)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Platinum Award from the Environment Bureau (Rosedale Hotel Kowloon)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced paper consumption for work-related purposes to 3.08 tonnes (2022: 6.36 tonnes).
• Reduced CO2e generated from direct operations to 390.2 tonnes (2022: 1,859.41 tonnes), with an intensity of 0.004kg CO2e per Hong Kong dollar of revenue (2022: 0.006 kg CO2e).

Social Achievements

• Achieved zero work-related fatalities and 0 lost days due to work injury (2022: 3 days).
• Total employee turnover rate was 32% (2022: 40%).
• Achieved gender diversity targets at the Board level and across the workforce.

Governance Achievements

• Complied with all code provisions of the CG Code.
• Maintained a sufficient number of independent non-executive Directors representing at least one-third of the Board.
• No incidents of non-compliance were identified.

Climate Goals & Targets

Environmental Challenges

• Global economic uncertainties, including the lingering impact of the COVID-19 pandemic, soaring inflation, and downward pressure on the PRC economy.
• Disasters, including climate change risks (extreme weather, transition to a lower carbon economy), and pandemic-related business disruptions.
• Highly competitive industries, including numerous developers and keen competition.
• Financing uncertainties, including potential difficulties in raising additional funds.
• Cooling measures on property markets.
• Laws and regulations, including government approvals and potential changes in regulations.
• Risks associated with associates and joint ventures.
• Currency and interest rate fluctuations.

Mitigation Strategies

• Carefully reviewing its business model and adjusting its agility.
• Monitoring and reducing carbon emissions, pursuing green building certifications, strengthening ESG governance, and updating business continuity plans.
• Formulating various operation and marketing strategies, closely monitoring performance, and tightening controls on costs.
• Reviewing financial risk exposure, managing the maturity profile of deposits and loans, and establishing diversified financing channels.
• Ongoing update and assessment of government policies, conducting market studies, and formulating appropriate strategies.
• Geographical diversification, monitoring regulatory changes, and seeking professional advice.
• Selecting business partners carefully, maintaining ongoing communications, incorporating contractual terms, and monitoring obligations.
• Assessing and monitoring foreign exchange and interest rate exposure, and considering hedging instruments.

Supply Chain Management

Responsible Procurement

• Stringent procedures and criteria for supplier selection, regular monitoring and review, preference for local suppliers, and avoidance of suppliers with known non-compliance.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions

Transition Risks

• Transitioning to a lower carbon economy

Opportunities

• Incorporating climate-friendly building and service designs.

Reporting Standards

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

Environmental Metrics

ESG Focus Areas

• Emissions
• Waste Management
• Energy Consumption
• Water Consumption
• Climate Change
• Employment Practices and Relations
• Workplace Health and Safety
• Talent Development
• Fair and Green Procurement Practices
• Customer Services
• Data Privacy and Information Security
• Anti-bribery and Anti-corruption
• Community Investment

Environmental Achievements

• Reduced carbon dioxide equivalent (CO2e) generated from direct operations to 298.13 tonnes (2023: 390.2 tonnes), with an intensity of 0.003kg CO2e per Hong Kong dollar of revenue (2023: 0.004 kg CO2e)
• Reduced paper consumption for work-related purposes to 2.66 tonnes (2023: 3.08 tonnes)
• Achieved zero work-related fatalities and zero lost days due to work injury

Social Achievements

• Maintained a total employee turnover rate of 26% (2023: 32%)
• Achieved the target of having a mixed gender Board with at least 1 Director of a different gender on the Board and at least 20% of senior executives and total workforce of a different gender respectively.
• Presented long services awards and organised festive luncheons for employees
• Participated in Dress Casual Day organised by The Community Chest where staff members voluntarily made donations of HK$14,200.

Governance Achievements

• Complied with all the code provisions of the CG Code and applied the principles contained therein
• Maintained a sufficient number of independent non-executive Directors representing at least one-third of the Board
• Established and maintained appropriate and effective systems and procedures for handling and dissemination of inside information

Climate Goals & Targets

Environmental Challenges

• Challenging business environment influenced by elevated geopolitical tensions, persistent high interest rates, and financial pressures on property developers
• Declining rents and rising vacancies in Hong Kong’s commercial property market
• Full impairment loss of interests in an associate (Rosedale Beijing) of HK$136.2 million
• Decrease in the fair value of investment properties of HK$134.0 million and impairment losses of commercial property of HK$46.4 million
• Share of net losses of joint ventures of HK$78.8 million
• Material uncertainties which may cast significant doubt about the Group’s ability to continue as a going concern

Mitigation Strategies

• Continuously reviewing its business model and adjusting agility
• Disposed of certain stock of properties located in Hong Kong and the PRC
• Considering selling specific properties to realise tied-up capital and secure revenue
• Actively seeking new sources of financing and loan facilities
• Successfully obtained a new borrowing of HK$200.0 million in May 2024
• Controlling administrative and operating costs

Supply Chain Management

Supplier Audits: Periodic site visits of various suppliers

Responsible Procurement

• Stringent procedures and consistent criteria for supplier selection
• Priority given to products and services certified by recognised authorities
• Preference for local suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: ESG Reporting Guide (Appendix C2 to the Listing Rules)

Certifications: BEAM Plus GOLD

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed