Climate Change Data

Environmental Metrics

ESG Focus Areas

• Emissions
• Employment
• Use of Resources

Environmental Achievements

• Successfully launched solar cooling proprietary technology products and solutions through a pilot project in Wuhu, Anhui Province, PRC.
• Reduced carbon emission through the adoption of solar cooling techniques.
• Participated in the “28th International Exhibition for Refrigeration, Air-Conditioning, Heating and Ventilation, Frozen Food Processing, Packaging and Storage” in Shanghai.

Social Achievements

• Established and implemented General Rules for Safety Production for the operation of Yuyao Factory to enhance the management of occupational health and safety.
• Formulated and implemented a Training Management Regulation, providing training courses according to the needs of different departments and corporate development strategy.
• Established an open and fair policy of reward and penalty at Yuyao Factory.

Governance Achievements

• Established and implemented the Policy for Product Responsibility and Supply Chain to enhance its related performance.
• Formulated and implemented the Management System of Interest Conflicts and Integrity, specifying anti-corruption policies and procedures.
• Formulated a Whistleblowing Policy, setting out its whistleblowing systems and procedures.

Climate Goals & Targets

Environmental Challenges

• Yuyao New Factory did not complete as scheduled, requiring the expedient use of a temporary production line.
• High energy consumption from air conditioners contributing to global warming.

Mitigation Strategies

• Successfully reached an agreement with the owner of Yuyao New Factory for free-of-charge use.
• Relocated from Yuyao Temporary Factory to Yuyao New Factory.
• Reduced air conditioner usage by adopting solar cooling techniques.

Supply Chain Management

Responsible Procurement

• Includes environmental and social performances as evaluation criteria for supplier selection (environmental protection, responsible procurement, labor welfare, equal opportunities, intellectual property protection, anti-corruption, product safety).

Climate-Related Risks & Opportunities

Opportunities

• Development of low-carbon technology; capturing opportunities arising from the transition to a low-carbon economy.

Reporting Standards

Frameworks Used: Stock Exchange of Hong Kong Limited’s Environmental, Social and Governance Reporting Guide

Third-party Assurance: Carbon Care Asia (for carbon assessments)

Sustainable Products & Innovation

• Solar cooling proprietary technology products and solutions

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced greenhouse gas intensity (calculated by turnover) dramatically compared to 2017/18
• Recycled 8.2 tons of discarded scraps out of 8.72 tons of total non-hazardous waste
• Switched canteen fuel from liquefied natural gas to LPG

Social Achievements

• Established procedures for employee complaints
• Implemented a reward and penalty system
• Provided various trainings (internal, external, practical, for senior management, self-learning)

Governance Achievements

• Established a risk management and internal control system
• Implemented Employee Complaints and Whistleblowing Management System
• Established sustainable procurement policies

Climate Goals & Targets

Environmental Challenges

• Technological risk (leakage of technical expertise, product responsibility)
• Human resources risk (loss of talents, employment management system)
• Increase in air pollutant and greenhouse gas emissions compared to 2017/18 (due to factory expansion and increased production)

Mitigation Strategies

• Streamlined workflows and cut down business trips
• Purchased vehicles that meet emission standards
• Ongoing assessment and recording of greenhouse gas emissions
• Exploring ways for saving energy and reducing greenhouse gas emission
• Considering establishing an ESG committee to incorporate potential environmental and social issues into its risk system

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• “Procurement Policy of Sustainable Development”

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

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

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Solar energy products

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Social Care
• Corporate Governance

Environmental Achievements

• Reduced Scope 1 greenhouse gas emissions from Yuyao Factory and Yuyao Office by 60% compared to the last reporting period due to subcontracting LPG combustion.
• Reduced air pollutant emissions compared to the previous year due to subcontracting canteen fossil fuel consumption and a decline in fuel consumption by vehicles.
• 99% of total water consumption was from Yuyao Factory and Yuyao Office. The rise in water consumption compared to last year was mainly attributable to enhanced cleaning during the COVID-19 outbreak.

Social Achievements

• Maintained close dialogue with employees to understand their needs and offered flexible working arrangements during the COVID-19 pandemic.
• Implemented various COVID-19 prevention measures in Hong Kong Office and Yuyao Factory/Office, including providing masks and sanitizers, implementing flexible working hours, and arranging work-from-home options.
• Organized annual dinners and other activities to foster a sense of belonging among employees.

Governance Achievements

• No breaches of significant laws and regulations during the reporting period.
• No litigations regarding corruption filed against the Group or its employees.
• Implemented communication channels for reporting acts of corruption or fraud, handled directly by the audit committee.

Climate Goals & Targets

Environmental Challenges

• Emissions from the production process of solar energy products.
• Loss of experienced professionals.
• Occupational safety and health matters, especially during the COVID-19 pandemic.
• Volatile business environment due to COVID-19.

Mitigation Strategies

• Implemented Environmental Policy with measures to reduce negative environmental impact.
• Provided competitive salaries, benefits, and career development opportunities to attract and retain talent.
• Maintained a healthy working environment through regular inspections and training, and implemented COVID-19 prevention measures.
• Adopted various measures to address the volatile business environment and reduce risks.

Supply Chain Management

Responsible Procurement

• Consideration of environmental performance, product safety, quality, price, and social responsibility of suppliers.

Climate-Related Risks & Opportunities

Reporting Standards

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

Sustainable Products & Innovation

• Solar cooling intelligent technology products
• Customized solar modules intelligent technology products

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Protection
• Employment and Labour Practices
• Product Responsibility
• Supply Chain Management
• Anti-corruption
• Community Investment

Environmental Achievements

• Reduced total greenhouse gas emissions from 40.20 tonnes of CO2e in 2020 to 28.37 tonnes of CO2e in 2021.
• Reduced total energy consumption from 92.50 MWh in 2020 to 62.66 MWh in 2021.
• Reduced total water consumption from 540.50 m3 in 2020 to 71.70 m3 in 2021.
• Reduced non-hazardous waste from 9.00 tonnes in 2020 to 0.60 tonnes in 2021.
• Implemented various energy-saving measures, including enhancing electricity monitoring, maintaining comfortable air conditioner temperature, using energy-efficient devices, and participating in green initiatives.

Social Achievements

• Maintained compliance with employment-related laws and regulations.
• Established written systems such as the Staff Handbook and Human Resources Management System.
• Provided competitive remuneration packages and benefits to employees.
• Implemented measures to prevent child labour and forced labour.
• Created a safe working environment and adhered to occupational health and safety regulations.
• Provided various types of training to employees, including introduction training for new hires and external training on business ethics and anti-discrimination.
• Implemented a comprehensive development program for employees.

Governance Achievements

• Established a robust sustainability governance structure with an ESG Taskforce overseeing environmental protection, employment practices, product responsibility, and community engagement.
• Implemented a risk management and internal control system overseen by the Board and the audit committee.
• Adopted a zero-tolerance approach to bribery, extortion, fraud, and money laundering.
• Formulated Anti-corruption Policies and a Whistleblowing Policy.
• Invited the Independent Commission Against Corruption (ICAC) to conduct training on commercial ethics.

Climate Goals & Targets

Environmental Challenges

• The COVID-19 pandemic posed challenges.
• The threat of global warming and extreme weather events.
• Maintaining business plans, sourcing fashionable styles, and seeking new customers for the Jewelry Business.

Mitigation Strategies

• Actively incorporated the principle of sustainable development into its businesses.
• Maintained close communication with various stakeholders to understand their views and expectations.
• Devoted more resources to environmental, social, and governance issues.
• Implemented various policies and measures in these three areas.
• Proactively participated in different jewelry exhibitions to widen sales channels.

Supply Chain Management

Responsible Procurement

• Code of Conduct for Suppliers (for Jewelry Business)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (floods, droughts, forest fires, heat waves)

Opportunities

• Development and sales of energy-related smart technology products (solar modules, micro inverters).

Reporting Standards

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

Sustainable Products & Innovation

• Solar cooling intelligent technology products
• Customized solar modules intelligent technology products
• New energy smart direct current inverters and power optimizers

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Energy conservation
• Occupational health and safety
• Sustainable development

Climate Goals & Targets

Environmental Challenges

• Reduced demand for solar power projects due to price increases and supply chain disruptions caused by pandemic controls.
• Trade barriers affecting demand for solar PV products in overseas markets.
• Geopolitical tensions in Europe leading to a wait-and-see attitude among overseas customers and project delays.
• Changes in the development approach for solar PV projects in the PRC, making it more difficult to promote products.
• Rising raw material prices and shortage of wafers increasing procurement costs.
• Weak consumer sentiment in the jewelry market due to pandemic prevention and travel restriction measures.

Mitigation Strategies

• Closely monitoring product mix and gross margin of the energy business, performing dynamic analysis, and making allocation and consolidation on sales staff and resources.
• Streamlining the structure and offices of overseas and back office departments, and focusing on promoting the diversification of the energy business in the PRC’s market.
• Strengthening marketing strategy, identifying contractors for clean energy development projects in the PRC, expanding sales channels, and strengthening cooperation with upstream and downstream players.
• Closely monitoring business operations, controlling costs, and reducing unnecessary expenses.
• Maintaining good relationships with customers and suppliers, exploring potential sales channels, and building reputation for business opportunities and expansion.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Greenhouse gas emissions
• Legal compliance in environmental protection
• Supply chain management
• Anti-corruption
• Corporate governance
• Product quality and safety
• Intellectual property rights protection
• Prevention of child and forced labour
• Legal compliance in employment

Environmental Achievements

• Replaced and selected nationally standardized motor gasoline for company vehicles to reduce air pollution and carbon emissions.
• Participated in "Green Sense No Air-Con Night 2022" and "Earth Hour" to promote energy conservation and emission reduction.
• Implemented measures to improve overall energy efficiency and reduce energy consumption (enhancing electricity monitoring, maintaining comfortable AC temperature, using energy-efficient devices, regular AC system inspections, utilizing natural lighting, installing motion detectors, regular vehicle maintenance, holding electronic meetings).

Social Achievements

• Established written systems (Staff Handbook, Human Resources Management System, Training Management Regulations) specifying employment terms and ensuring equal opportunity and anti-discrimination.
• Provided various employee benefits (insurances, bonuses, meal allowance, staff medical benefits, statutory holidays, leave).
• Implemented occupational health and safety measures (General Rules for Safety Production, provision of labor protection equipment, immediate follow-up on work-related injuries, three-tier safety education and training).
• Offered comprehensive employee development programs (annual training plan, assessment of training implementation, tracking results).

Governance Achievements

• Established a clear and progressive governance structure to ensure communication and implementation of sustainability objectives, policies, and initiatives.
• Engaged Riskory Consultancy Limited for ESG and sustainability consulting services and ESG-related risk management.
• Adopted a zero-tolerance approach to bribery, extortion, fraud, and money laundering, implementing an Anti-corruption Policy and Whistleblowing Policy.
• Provided anti-corruption training to directors and employees.

Climate Goals & Targets

Environmental Challenges

• Climate change risks (typhoons, floods) impacting operations and employees.
• Uncertainty risks and unfavorable market conditions in the energy and jewelry industries.
• Travel restrictions and social distancing measures impacting the jewelry business.

Mitigation Strategies

• Actively promoting low-carbon development and clean energy (solar and natural gas).
• Identifying projects related to natural gas distributed energy stations and direct supply solutions to industrial users.
• Leveraging resource advantages in energy storage technology, distribution, and industry networks to expand nationally.
• Implementing effective preventive measures to reduce infection risks and maintain hygiene and safety in the workplace (disinfection, temperature checks, providing masks and sanitizers, flexible working hours, work-from-home arrangements, video conferencing).

Supply Chain Management

Supplier Audits: 21 suppliers, 16 from PRC, 5 from Hong Kong; regular factory visits to inspect product quality and production environment.

Responsible Procurement

• Policy on Product Responsibilities and Supply Chain regulating supplier selection and management; considering factors such as product safety, quality, price, environmental risks, environmental performance, responsible procurement, labor rights protection, welfare, equal opportunities, intellectual property rights protection, and anti-corruption.

Climate-Related Risks & Opportunities

Physical Risks

• Typhoons and floods

Transition Risks

• Increasingly stringent environmental laws and regulations

Opportunities

• Growing consumer awareness and attention to energy conservation and emission reduction; increasing demand for solar and natural gas.

Reporting Standards

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

Environmental Metrics

ESG Focus Areas

• Climate Change
• Greenhouse gas emissions
• Hazardous and non-hazardous waste treatment
• Legal compliance in environmental protection
• Responding to risks related to climate change
• Supply chain management
• Anti-corruption
• Corporate governance
• Quality and safety of the Company’s products
• Protection of intellectual property rights
• Prevention of child and forced labour
• Legal compliance in employment
• Employment and Labour Practices
• Health and Safety
• Development and Training
• Labour Standards
• Community Investment

Environmental Achievements

• Utilized carbon credits certified under the United Nations Clean Development Mechanism (CDM) to offset greenhouse gas emissions
• Replaced and selected nationally standardized motor gasoline for company vehicles to reduce air pollution and carbon emissions
• Implemented measures to improve overall energy efficiency and reduce energy consumption (detailed in report)
• Participated in Earth Hour 2024

Social Achievements

• Established written systems (Staff Handbook, Human Resources Management System, Training Management Regulations) to communicate employee responsibilities, benefits, and obligations
• Implemented a “zero tolerance” policy towards child labor and forced labor
• Provided various types of training for employees (onboarding, internal, and external)
• Created a healthy and safe working environment for employees
• Offered competitive remuneration packages and actively improved the work environment

Governance Achievements

• Established a clear and progressive governance structure for sustainable development
• Engaged Riskory Consultancy Limited as a professional consultant on ESG and sustainable development
• Implemented Anti-corruption Policy and Whistleblowing Policy
• Organized anti-corruption-related online and physical training
• Formulated the Environmental Protection Policy

Climate Goals & Targets

Environmental Challenges

• Extreme weather events (typhoons, heavy rain, floods) threatening operations and causing loss of workdays
• Potential uncertainty risks and unfavorable market conditions
• Stringent environmental laws and regulations

Mitigation Strategies

• Actively practicing and promoting Low-Carbon development and vigorously promoting the development of clean energy
• Implementing several environmental initiatives to minimize greenhouse gas emissions
• Actively identifying more projects for natural gas
• Leveraging resources advantages in areas such as energy storage technology, distribution, and industry networks to expand nationally

Supply Chain Management

Supplier Audits: 11 of 27 suppliers sampled for assessment

Responsible Procurement

• Safety of product composition
• Quality of products
• Prices
• Environmental risks and environmental performance
• Social responsibility (responsible procurement, protection of labor rights, welfare and equal opportunities, protection of intellectual property rights, anti-corruption)

Climate-Related Risks & Opportunities

Physical Risks

• Floods caused by typhoons and heavy rain

Transition Risks

• Increasingly stringent environmental laws and regulations

Opportunities

• Increasing consumer awareness and attention to energy conservation and emission reduction; growth in solar and natural gas markets

Sustainable Products & Innovation

• Solar photovoltaic modules, new energy smart direct current inverters and power optimisers