Climate Change Data

Environmental Metrics

ESG Focus Areas

• Emissions
• Health and Safety
• Development and Training

Environmental Achievements

• Reduced greenhouse gas emissions intensity by 4% compared to last year (24.8 MWh/million HKD revenue)

Social Achievements

• Implemented various measures to reduce employee turnover, including improving working environment and enhancing remuneration and welfare.
• Organized various community investment activities, totaling HK$2,728,000 in sponsorship.

Governance Achievements

• Complied with all code provisions as set out in the Corporate Governance Code.
• Established a risk management framework in 2016.

Climate Goals & Targets

Environmental Challenges

• Dampened consumption of high-end electronics consumer goods due to poor market sentiment.
• Enhanced price sensitivity and postponed launch of new products.
• Indirect cost pressure from customers due to the trade war and overall weak consumer market sentiment.

Mitigation Strategies

• Purchased new equipment for production capacity expansion.
• Adhered to the principle of customer diversification to effectively diverge risks.
• Actively seeking resources for building plants in Southeast Asia or acquisitions with complementary and synergy effects.
• Invested approximately HK$50 million in three flexible production lines and improved intellectualized operating procedures.

Supply Chain Management

Supplier Audits: Once a year for main suppliers and subcontractors

Responsible Procurement

• Social responsibility letter and integrity agreement; Non-Usage of Environment-related Substance Guarantee.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ESG Reporting Guide (Appendix 27 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited)

Awards & Recognition

• Listed Company Award of Excellence (Hong Kong Economic Journal)
• Hong Kong Awards for Industry: Upgrading and Transformation
• Supplier Excellence Award 2018 – Supplier Quality (Royal Philips)
• Supplier of the Year 2018 (Inventec Appliances Corp)
• High Quality and Excellent Service Awards 2018 (Pegatron)

Environmental Metrics

ESG Focus Areas

• Emissions reduction
• Workplace safety
• Prevention of child labour and forced labour
• Prevention of bribery, extortion, fraud and money laundering
• Establishing a comprehensive system of employment management
• Improving employees’ knowledge and skills for discharging duties at work

Environmental Achievements

• Total greenhouse gas emissions decreased by 8.0% compared to 2019.
• Nitrogen oxides, sulfur oxides, and respirable suspended particulates emitted by fossil fuel consumption decreased significantly due to the full electrification of forklift equipment.

Social Achievements

• Established the ESG Management Committee to monitor the Group’s sustainability performance.
• Implemented flexible work models during the COVID-19 pandemic to reduce employee mobility.
• Increased epidemic prevention costs by approximately HK$6 million to ensure workplace hygiene.
• Provided safety trainings for employees, including three-level safety education, special safety education, and skill certification training.
• Improved the employment system by establishing internal reporting channels for child labor and prohibiting discrimination.

Governance Achievements

• Established the ESG Management Committee.
• Strengthened product quality control measures in response to customer complaints.
• Implemented an anti-corruption reporting system.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the COVID-19 pandemic.
• Sluggish consumer sentiment and retail performance due to lockdowns.
• Logistics constraints due to border closures.
• Intense competition in the industry and the Sino-US trade war leading to lower prices for molds.

Mitigation Strategies

• Diversified product and customer portfolio.
• Resumed stable production in the second half of the year.
• Developed new customers and products.
• Implemented prudent cash flow management to minimize capital expenditure.
• Expanded production capacity in existing plants and established a new plant in Vietnam.
• Improved process technology and production efficiency.
• Explored other high value-added mold categories.

Supply Chain Management

Responsible Procurement

• Strict screening of suppliers to manage environmental and social risks.
• Termination of cooperation with suppliers using child labor or forced labor.

Climate-Related Risks & Opportunities

Awards & Recognition

• Industry 4.01i Certificate

Environmental Metrics

ESG Focus Areas

• Safety management
• Human resources
• Chemical management
• Resource consumption
• Pollutant discharge
• Anti-corruption and compliance management
• Climate change

Environmental Achievements

• Obtained ISO 14001 environmental management system certification
• Obtained ISO 45001 occupational health and safety management system certification
• Achieved zero discharge of industrial wastewater
• Reduced total intensity of air pollutant emissions
• Reduced total intensity of waste generated
• Reduced total intensity of water consumption
• Reduced total intensity of energy consumption

Social Achievements

• Improved employee rights and interests protection system
• Implemented annual dividend incentives for key personnel
• Provided abundant and diversified employee training (70,760.3 hours total)
• Implemented the safe production responsibility system
• Conducted annual occupational health and safety inspections
• Donated HK$2,719,000 to the community

Governance Achievements

• Established a sound ESG mechanism
• Established an anti-corruption monitoring framework
• Formulated the Anti-Corruption Policy
• Conducted 12 fraud investigations, no corruption incidents identified
• Improved complaint management system

Climate Goals & Targets

Environmental Challenges

• Global economic uncertainties (COVID-19, inflation, Russia-Ukraine war)
• Weak consumer market
• Supply chain disruptions (semiconductor shortage)
• Instability of the automobile supply chain
• Depreciation of the Euro currency

Mitigation Strategies

• Close relationship with customers
• Business diversification
• New product launches
• Strict cost and internal control
• Cost reduction and efficiency improvement measures
• Development of new products integrating silicon and traditional plastic injection technologies
• Establishment of a production base in Vietnam
• Focus on developing domestic leading enterprises

Supply Chain Management

Supplier Audits: 36/year

Responsible Procurement

• Principle of procurement from nearby sources
• Prohibition of conflict minerals
• Green procurement

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (heat wave, typhoon, flood)
• Changes in climate pattern (ocean acidification, sea level rise)
• Power shortage
• Insufficient water supply
• Damage to production facilities

Transition Risks

• Increase in greenhouse gas emission pricing
• Increased emission disclosure obligations
• Supervision on existing products and services
• Costs of transition to low-emission technologies
• Increase in raw material costs
• Increase in stakeholder interest or negative feedback

Opportunities

• Resource efficiency improvements
• Use of clean energy
• Development of low-carbon production technologies
• Acquisition of new customers
• Government financial support
• Participation in carbon markets
• Increased product diversification
• Use of advanced green raw materials/low-carbon production technologies

Reporting Standards

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

Certifications: ISO 14001, ISO 45001, ISO 13485, ISO 90001, IATF 16949

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 3
• Goal 5
• Goal 7
• Goal 8
• Goal 12
• Goal 13

Initiatives contributing to improved health and well-being, gender equality, clean energy use, decent work, responsible consumption and production, and climate action.

Sustainable Products & Innovation

• Products using environmentally-friendly materials and recycled materials

Awards & Recognition

• Not disclosed