Climate Change Data

Environmental Metrics

ESG Focus Areas

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

Environmental Achievements

• GHG reduced by 19% in terms of intensity compared to the last reporting period
• Non-hazardous waste and hazardous waste reduced by 21% and 14% in terms of weight compared to the last reporting period
• Electricity consumption of Dongguan Shidai reduced compared to 2021
• Upgraded Dongguan Shidai’s exhaust gas purification treatment equipment
• Installed eco-friendly exhaust gas purification treatment equipment at Dongguan Shidai
• Upgraded drainage facilities from a “combined drainage and sewerage system” to a “separate drainage and sewerage system” at Dongguan Shidai
• Accredited a “GRS Version V.4” certificate by International Organic Accreditation Services (IOAS)

Social Achievements

• Total Training Hours: 142,599 hours
• Community Donation: > RMB290,000
• Awarded “Happy Company” by The Chinese Manufacturers’ Association of Hong Kong and Promoting Happiness Index Foundation in 2022
• Yingde Leather obtained the Worldwide Responsible Accredited Production (“WRAP”) Certification

Governance Achievements

• Established an Environmental, Social and Governance Committee (the “ESG Committee”)

Climate Goals & Targets

Environmental Challenges

• Extreme weather events such as flooding
• More frequent natural hazards decreasing production capacity
• Changes in customer preferences towards sustainable materials
• Increasing costs due to extreme weather and Covid-19

Mitigation Strategies

• Established a natural disaster emergency plan
• Developed sustainable sneakers made of natural dandelion rubber and recycled material

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Selecting suppliers based on quality, price, experience, service, compliance and payment terms
• Regularly visiting suppliers to ensure raw materials meet standards
• Prioritising suppliers with relevant environmental and social certifications
• Considering environmental impacts of products and raw materials
• Prioritising geographically closer suppliers to lower transportation emissions

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events such as flooding causing damage to facilities

Transition Risks

• Decreased production capacity due to natural hazards
• Changes in customer preferences towards sustainable materials
• Increased operating and selling costs

Opportunities

• Development of low-emission footwear, handbag and small leather goods

Reporting Standards

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

Certifications: GRS Certification, WRAP Certification, Advanced AEO Certification

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• GENERATION ZERØGRAND II sneaker

Awards & Recognition

• “2021 Outstanding Social Responsibility Enterprise Award” by Hong Kong Commercial Daily (awarded to the chairman)
• “Happy Company” by The Chinese Manufacturers’ Association of Hong Kong and Promoting Happiness Index Foundation in 2022

Environmental Metrics

ESG Focus Areas

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

Environmental Achievements

• Accredited both “Wastewise” certificate in Good Level and “Energywise” certificate in Basic level by Hong Kong Green Organisation Certification
• GHG emissions reduced by 7% in terms of intensity compared to the last reporting period
• Non-hazardous waste reduced by 37% and hazardous waste reduced by 18% in terms of weight compared to the last reporting period
• Electricity consumption of Dongguan Shidai reduced compared to 2022
• Upgraded Dongguan Shidai’s exhaust gas purification treatment equipment to reduce the emission of harmful gaseous volatile organic compounds (“VOCs”)
• Increased the portion of recycled material in products to reduce carbon footprint

Social Achievements

• Awarded “Happy Company” for three consecutive years and “Caring Company” by the Caring Company Scheme
• Total training hours: 144,315 hours
• Community donation: > HKD450,000
• Yingde Leather obtained the Worldwide Responsible Accredited Production (“WRAP”) Certification

Governance Achievements

• Established an Environmental, Social and Governance Committee (ESG Committee) to identify and manage ESG-related risks
• Joined the ESG Pledge Scheme organised by The Chinese Manufacturers’ Association of Hong Kong
• Dongguan Shidai is recognised as an advanced Authorised Economic Operator (“AEO”) by the Customs of PRC

Climate Goals & Targets

Environmental Challenges

• Extreme weather events (flooding) damaging facilities and increasing maintenance costs
• Decreased production capacity due to more frequent natural hazards leading to delayed order delivery
• Changes in customer preferences towards sustainable materials
• Increased costs due to prolonged extreme weather and Covid-19

Mitigation Strategies

• Established a natural disaster emergency plan
• Developed sustainable sneakers made of natural dandelion rubber and recycled material
• Actively adhered to national and local disease prevention and control requirements for COVID-19

Supply Chain Management

Responsible Procurement

• Quality, price, experience, service, compliance and payment terms
• Priority given to suppliers with relevant environmental and social certifications
• Customer-imposed guidelines on safety, health, environmental and human rights

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events such as flooding

Transition Risks

• More frequent natural hazards decreasing production capacity
• Changes in customer preferences towards sustainable materials
• Increased costs due to prolonged extreme weather and Covid-19

Opportunities

• Development of low-emission footwear, handbag and small leather goods

Reporting Standards

Frameworks Used: Appendix 27 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited

Certifications: WRAP Certification, “Wastewise” certificate (Good Level), “Energywise” certificate (Basic Level)

Sustainable Products & Innovation

• Generation ZERØGRAND II
• 5.0 ZERØGRAND EMBROSTITCH RUNNING SHOE

Awards & Recognition

• 2021 Outstanding Social Responsibility Enterprise Award (Chairman)
• “Happy Company” (three consecutive years)
• “Caring Company”

Environmental Metrics

ESG Focus Areas

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

Environmental Achievements

• Accredited both “Wastewise” Certificate in Good Level and “Energywise” Certificate in Basic level by Hong Kong Green Organisation Certification
• Received a Certificate of Merit in the “Hong Kong Awards for Environmental Excellence”,
• Recognised as “Hong Kong Green Organisation”
• Reduced non-hazardous waste by 19% in terms of intensity compared to the previous year.
• Upgraded Dongguan Shidai’s exhaust gas purification treatment equipment to reduce the emission of harmful gaseous volatile organic compounds (“VOCs”)
• Increased the portion of recycled material in products to reduce carbon footprint

Social Achievements

• Awarded “Happy Company” for four consecutive years and “Caring Company” by the Caring Company Scheme
• Organised various employee activities (Chinese New Year, Mid-Autumn Festival, Dragon Boat Festival, Summer Fiesta)
• Implemented a “Breastfeeding Friendly Workplace” policy

Governance Achievements

• Established an Environmental, Social and Governance Committee (ESG Committee)
• Joined the ESG Pledge Scheme
• Dongguan Shidai recognised as an advanced Authorised Economic Operator (“AEO”) by the Customs of PRC

Climate Goals & Targets

Environmental Challenges

• Factories susceptible to severe weather (floods, typhoons, heavy rainstorms)
• Shifting consumer preferences towards sustainable products
• Increasing awareness of environmental issues potentially impacting reputation

Mitigation Strategies

• Implemented natural disaster emergency plans
• Launched sustainable sneakers made with natural dandelion rubber and recycled materials
• Not explicitly stated, but implied through improved ESG practices and stakeholder engagement

Supply Chain Management

Supplier Audits: Regular visits to suppliers

Responsible Procurement

• Quality, price, experience, service, compliance and payment terms considered
• Suppliers that do not comply with environmental and social-related policies and regulations are rejected
• Customer-imposed guidelines on safety, health, environmental and human rights are followed

Climate-Related Risks & Opportunities

Physical Risks

• Floods, typhoons, heavy rainstorms

Transition Risks

• Shifting consumer preferences towards sustainable products
• Negative perceptions among individuals potentially resulting in a decline in reputation

Opportunities

• Investing in development of environmentally-friendly products

Reporting Standards

Frameworks Used: Appendix C2 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited

Certifications: WRAP Certification, Advanced AEO Certification, “Wastewise” Certificate in Good Level, “Energywise” Certificate in Basic level

Sustainable Products & Innovation

• Generation ZERØGRAND II and 5.0 ZERØGRAND Embrostitch Running Shoe

Awards & Recognition

• “Happy Company”, “Caring Company”, Certificate of Merit in the “Hong Kong Awards for Environmental Excellence”, “Hong Kong Green Organisation”, “Silver Cup” in the Rural Revitalisation Hongmian Cup competition, Certificate of Appreciation from the Donghua Town Committee