Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced GHG emissions from 58.59 tonnes to 59.57 tonnes; Implemented energy-saving practices, including paper saving and electricity conservation; Reduced paper consumption from 0.19 tonnes to 0.18 tonnes.

Social Achievements

• Established human resources management policies and procedures; Implemented measures to enhance employee wellness and safety; Provided comprehensive training to employees; Maintained compliance with anti-discrimination laws; Made donation of HK$1.0 million to The Community Chest of Hong Kong in 2016 (prior period); Organized sports and art activities for employees; Donated toys and clothes to church; Supported local restaurants in their campaigns for donation of meals to elderlies living alone.

Governance Achievements

• Adopted board diversity policy; Established four Board committees (audit, nomination, remuneration, risk management); Adopted a series of terms of reference for Board committees; Adopted a director nomination policy; Complied with the Corporate Governance Code; Appointed BDO Limited as external auditor; Implemented internal control to monitor compliance with relevant laws and regulations; Engaged an external independent internal audit service provider to review the effectiveness of the Group’s internal control system.

Climate Goals & Targets

Environmental Challenges

• Continued static economy in the PRC; Slow-down in the collection of past due finance lease receivables; Deterioration in asset quality; Higher liquidity risk exposure; Volatile economy; Weakening of leased assets quality; Increase of financing costs; Decrease in profit margin; Credit risk of small and medium enterprises (SMEs) in the PRC; Risk relating to funding sources and interest rate; Foreign exchange risk.

Mitigation Strategies

• Implemented active collection measures for past due financial assets; Strengthened internal control; Implemented active cost-saving measures; Renewed debts with principal amounts of approximately HK$470,307,000 for at least two years; Closely monitored changes of customers’ credit risk; Requested additional collaterals and pledge assets from customers; Closely monitored changes in interest rate and charging to clients; Closely monitored the value of the related leased assets and the collaterals securing our leases; Closely monitored the related foreign currency exposure; Implemented policies and procedures to ensure compatibility and security of new systems; Selected multiple suppliers for comparison.

Supply Chain Management

Responsible Procurement

• Environmental Purchasing Policy; Encouraged suppliers to use recycled paper; Opted for sustainable and energy-saving electronic appliances.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Appendix 27 of the Main Board Listing Rules

Environmental Metrics

ESG Focus Areas

• Climate change mitigation and adaptation
• Green operation
• Diversity, inclusion and equal opportunities
• Recruiting and retaining talents
• Supply chain management
• Service quality
• Improving client services
• Integrating technology with finance
• Anti-corruption
• Contributions to community
• Information security and customer privacy protection
• Responding to national development strategies
• Corporate governance
• Compliance operation
• Risk management

Environmental Achievements

• Reduced greenhouse gas emissions (Scope 1 and 2) to 141.15 tonnes of CO2-equivalent emission in 2024 from 136.32 tonnes in 2023. Increase attributed to resumption of normal operations post-COVID.
• Implemented various green office practices including paper saving, green pantry initiatives, and hazardous waste reduction.

Social Achievements

• Maintained 100% labor contract signing rate.
• Trained 85 person-times, achieving 2.70 hours of training per person.
• Organized 5 large employee activities.
• Made contributions to sustainable development of communities, including donating toys and clothing to churches and assisting local restaurants in donating meals to the elderly.

Governance Achievements

• Established a top-down ESG governance structure.
• Implemented strict compliance measures, including regular compliance training.
• Established a whistle-blowing policy to address suspected misconduct.

Climate Goals & Targets

Environmental Challenges

• Challenging economic conditions in 2024 affecting customer financial stability and cash flow due to global economic slowdown, supply chain disruptions, rising inflation, and geopolitical tensions.
• Credit risk of small and medium enterprises (SMEs) in the PRC.
• Risks relating to funding sources and interest rates.
• Foreign exchange risk.

Mitigation Strategies

• Focused on restoring normal operations and reducing liabilities.
• Implemented cost-saving measures.
• Expanded into new operating locations and initiated loans with more liquid assets and smaller loan sizes to minimize credit risk.
• Provided value-added services to complement leasing operations.
• Closely monitored customer credit risk and requested additional collaterals in some cases.
• Closely monitored interest rate changes and adjusted client charges accordingly.
• Regularly monitored liquidity requirements.

Supply Chain Management

Supplier Audits: 100% coverage for Mainland China suppliers

Responsible Procurement

• Environmentally-friendly Procurement Policy to support the purchase of recyclable products.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather disasters (typhoons, floods, storms)
• Chronic weather disasters (rising temperature and sea levels)

Transition Risks

• Policy-related risks (restrictions on high-energy-consuming devices)
• Legal risks
• Market risks
• Technology risks
• Reputation risks

Opportunities

• Market opportunities (providing financial services for environment-friendly companies)
• Services (developing ESG-related business)
• Energy source (using low-carbon energy)

Reporting Standards

Frameworks Used: Appendix C2 of the Listing Rules issued by The Stock Exchange of Hong Kong Limited

UN Sustainable Development Goals

• Goal 5: Gender equality
• Goal 9: Industry, innovation and infrastructure
• Goal 13: Climate action

The Group's initiatives align with these goals through gender equality in recruitment, promoting green technology, and reducing greenhouse gas emissions.

Sustainable Products & Innovation

• Green Supply Chain due diligence services
• Credit reports integrating ESG factors