Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Obtained ISO14000 Environmental Management System certification for Weifang Parasia and Weifang Binhai.
• Complied with ultra-low emission standards of Weifang City for both Weifang Binhai and Weifang Parasia.
• Fully replaced consumption of thermal coal with natural gas in Weifang Binhai's production process since August 2017.
• Recycled steam of approximately 176,610 tonnes, saving around RMB25.0 million in production cost in 2017.
• Recycled wastewater of approximately 13,854 tonnes in 2017.

Social Achievements

• No work-related fatality in 2017.
• Provided over 55 hours of in-house trainings per employee on average in 2017.
• Organized outings, basketball leagues, off-road competition and singing competition etc. to promote staff mental and physical health.

Governance Achievements

• Established whistleblowing policy.
• No litigation related to corruption in 2017.

Climate Goals & Targets

Environmental Challenges

• Increased volume of hazardous wastes due to enlarged production scale and capacity of Weifang Binhai.
• 18.2% employee turnover rate in 2017.

Mitigation Strategies

• Built an organic waste incineration treatment facility in Weifang Binhai.
• Well-established human resources strategies to attract and retain competent employees.
• Provided sophisticated and competitive remuneration and benefit regime to employees.

Supply Chain Management

Supplier Audits: Annually or quarterly

Responsible Procurement

• Supplier evaluation including background, qualification, quality control of service, financial status, past performance, contract fulfillment, professionalism of project team, corporate integrity and social responsibility.

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

Certifications: ISO14000, ISO18000, ISO9001

Environmental Metrics

ESG Focus Areas

• Safety
• Environmental Protection

Social Achievements

• Established human resources policies and systems, including incentives, rewards, training, and personal development plans for employees.

Governance Achievements

• Established a Nomination Committee, Remuneration Committee, and Audit Committee.

Climate Goals & Targets

Environmental Challenges

• Slowdown of overall economic activities in China due to interest rate hikes, reduced consumer spending, and geopolitical tensions.
• Weak market demand due to downstream customers not digesting stockpiled inventory from the previous year.
• Substantial decline in selling prices of products.

Mitigation Strategies

• Adjusted sales and marketing strategies.
• Expanded overseas markets and application fields of products.
• Implemented stringent cost controls.
• Continued improvement of production processes to enhance product competitiveness.
• Development of new products.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: HKAS 34

Third-party Assurance: BDO Limited

Environmental Metrics

ESG Focus Areas

• Safety
• Environmental Protection
• Sustainable Development

Environmental Achievements

• Implemented and maintained high standards of safety and environmental protection in its production system

Social Achievements

• Established human resources policies and scheme with a view to deploying the incentives and rewards of the remuneration system which includes a wide range of training and personal development programs to the employees.
• Staff benefits, including medical coverage and provident funds, have also been provided to the employees of the Group.

Governance Achievements

• Compliance with the Corporate Governance Code as set out in Appendix 14 to the Listing Rules
• Compliance with the Model Code for Securities Transactions by Directors of Listed Issuers

Climate Goals & Targets

Environmental Challenges

• Slowdown of overall economic activities of the PRC
• Weak market demand from downstream customers
• Significant decrease in selling prices of products due to overall economic downturn in PRC and abroad

Mitigation Strategies

• Adjusted sales and marketing strategies
• Vigorously expanding overseas markets
• Extending the application fields of the Group’s products
• Implemented stringent controls over various expenses
• Continuously strengthening the improvement of production processes to enhance the competitiveness of its products
• Cautious and prudent and stable operating and financial management policies
• Improve its internal operation persistently
• Make good use of its operation model of circular economy production system and persistent costs rationalisation measures

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: HKAS 34 “Interim Financial Reporting”

Third-party Assurance: BDO Limited