Climate Change Data

Environmental Metrics

ESG Focus Areas

• Product Quality
• Intellectual Property Protection
• Compliance
• Corporate Governance
• Risk Management
• Remuneration and Benefits
• Anti-Corruption
• Health and Safety
• Business Ethics
• Legal Employment
• Privacy Protection and Data Security
• Development and Training
• Supply Chain Management
• Protection of Employee’s Rights and Interests
• Customer Relationship Management
• Community Benefit
• Emissions Management
• Energy use
• Water Resources Management

Environmental Achievements

• Maintained management strategies such as separate collection of solid waste and 100% recycling rate.
• Effectively disposed of various types of waste according to the different types of waste to reduce the adverse impact of waste on the environment.

Social Achievements

• Complied in all material respects with all applicable labor laws, rules and regulations, and there has been no incident of overwork or illegal labor practice or any complaint arising therefrom.
• Provided our employees with good training opportunities and competitive salaries, pay for medical insurance, pension insurance, unemployment insurance, work injury insurance, maternity insurance and housing provident fund in accordance with the relevant laws, and provide employees with statutory annual leave to protect their basic rights in accordance with the relevant law.
• Successfully produced and broadcasted eight variety programs
• Had no work-related deaths and zero work days lost due to work-related injuries.

Governance Achievements

• Established an internal whistleblowing policy to encourage employees to report misconducts and take protective measures for whistleblowers.
• Had no incidents involving bribery, fraud or money laundering.

Climate Goals & Targets

Environmental Challenges

• Recurring local outbreaks in certain areas in China affected the development of the entertainment industry.
• Overall macro-economic environment in 2022 negatively impacted business operations and financial performance.
• Decrease in revenue from advertising sales of variety programs as affected by the macro-economic environment and due to the negative impact of COVID-19.
• Decrease in revenue from commissioned programs as a direct result of the decrease in the number of episodes from our production of commissioned variety programs in 2022.
• Decrease in music IP licensing revenue and licensing price of the music IPs we produced in association with “Sing! China 2022” as compared to “Sing! China 2021”, because our Group licensed the music IPs to multiple new licensees on a non-exclusive basis in 2022, which had a lower licensing price as compared to licensees on an exclusive basis.
• Decrease in the number of music IPs we delivered to an online music platform as we produced less music works for our managed artists.
• Decrease in revenue generated from licensing our film IP as a result of the negative impact of COVID-19 in 2022.

Mitigation Strategies

• Implemented appropriate measures in response to any changes that may have a negative impact on our business, financial conditions, results of operations and prospects.
• More effective costs management in relation to COVID-19.
• Did not schedule subsequent season for programs with low gross margin in 2022.
• Incurred less rigid cost in 2022 than in 2021 as we coped better with situations where COVID-19 may have adverse impact on our Group’s business operations.
• Implemented several internal control measures to manage ongoing compliance with the laws and regulations applicable to our business effectively.
• Engaged third-party legal counsels to provide legal support and services, including contract review services, legal feasibility analysis for our business plans, and legal-related risk trainings to our legal department and other internal departments.

Supply Chain Management

Supplier Audits: 100% coverage

Responsible Procurement

• Developed a whole process management system for supplier access, assessment and quality control
• Developed the “Large-scale Project Establishment and Closing Process Management System” to address environmental and social risks in supply chain management.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather and climate conditions (e.g. snowstorms, typhoons and heavy rainfall)

Transition Risks

• Changes in environmental, social and climate-related laws and regulations

Reporting Standards

Frameworks Used: Appendix 27 of the Environmental, Social and Governance Reporting Guidelines of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited

Third-party Assurance: Not disclosed

Awards & Recognition

• Shanghai Harmonious Labor Relations Standard Enterprise
• Workers’ Pioneer
• Advanced Staff Family
• Excellent Entity for Talent Development in Changning District
• Model Enterprise for Public Welfare