Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Employment
• Supplier Management
• Community Investment
• Product Responsibility

Environmental Achievements

• Achieved ISO 14001 certification for environmental management system.
• Replaced old equipment with energy-efficient models.
• Implemented cleaner means of production to reduce energy and resource use and pollutant emissions.
• Installed oil mist separators in staff kitchen to minimize oil fume emission.
• Installed LED lighting in factory.

Social Achievements

• Established a labor union to improve communication and address employee concerns.
• Provided various allowances and subsidies (accommodation, medical, education).
• Held training sessions for employees to acquire professional qualifications.
• Encouraged employee participation in leisure activities to promote work-life balance.

Governance Achievements

• Adopted the Model Code for Securities Transactions by Directors of Listed Issuers.
• Established a remuneration committee.
• Established an audit committee.
• Established a nomination committee.
• Implemented a code of conduct emphasizing integrity.

Climate Goals & Targets

Environmental Challenges

• Shrinking DSCs market due to competition from mobile devices.
• Japan Kumamoto Earthquake affecting some customers.
• Disciplinary investigations by regulatory authorities.
• Increasing labor costs and high staff turnover rate in PRC.

Mitigation Strategies

• Proactive control of operating expenses.
• Exploration of customer base and development of diversified products (surveillance cameras, action cameras, healthcare instruments).
• Improved production efficiency and cost control.
• Optimized capability and improvement in automation and efficiency.
• Careful evaluation of expansion of new production facilities.

Supply Chain Management

Supplier Audits: Annual assessment of qualified suppliers’ sustainability performance.

Responsible Procurement

• Prohibition of substances of environmental concern (reference to local legal standards and SVHC Candidate List).
• Avoidance of conflict minerals.

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• occupational health and safety
• air emission
• labour rights
• ethical business
• greenhouse gas emission

Environmental Achievements

• Reduced energy consumption (details in Environmental Performance table)
• Reduced water consumption (details in Environmental Performance table)
• Reduced non-hazardous waste (details in Environmental Performance table)
• Reduced hazardous waste (details in Environmental Performance table)
• Implemented ISO 14001 environmental management system

Social Achievements

• Implemented OHSAS 18001 and GB/T 28001-2011 occupational health and safety management systems
• Launched safety and environmental incentive program
• Organized various staff activities (make-up workshop, mini-marathon)
• Provided various training sessions (details in Training and Development section)
• Established a whistle-blowing mechanism

Governance Achievements

• Engaged an independent professional advisor to review corporate governance, risk management, and compliance
• Adopted the Model Code for Securities Transactions by Directors of Listed Issuers
• Established a remuneration committee
• Established an audit committee
• Established a nomination committee

Climate Goals & Targets

Environmental Challenges

• Weak state of the DSCs industry impacting revenue
• High staff turnover rate
• Sino-US trade friction
• Cost pressures due to reduced efficiency in economies of scale

Mitigation Strategies

• Product diversification (surveillance cameras, advanced TVs, projectors)
• Optimized capability and improved efficiency
• Expenses control
• Complying with environmental protection and corporate governance regulations

Supply Chain Management

Supplier Audits: Regular supplier assessment program covering quality, business ethics, environmental management, labor management, and OHS management

Responsible Procurement

• Green Procurement Management Standard (Substances of Environmental Concern and Conflict Minerals)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: HKEx ESG Reporting Guide

Certifications: ISO 14001, OHSAS 18001, GB/T 28001-2011, ISO 9001, IATF 16949

Awards & Recognition

• Environment Friendly Corporation certificate from Fuji Xerox Co., Ltd.

Environmental Metrics

ESG Focus Areas

• Occupational health and safety
• Employee retention
• Labour rights
• Legal compliance (environmental and socio-economic)
• Intellectual property
• Business ethics

Environmental Achievements

• Reduced air emissions through installation of air filtration systems and chimneys; upgraded exhaust gas treatment facilities
• Implemented ISO 14001 environmental management system
• Reduced resource use and pollutant emissions through equipment replacement and cleaner production methods

Social Achievements

• Implemented OHSAS 18001 and GB/T 28001-2011 occupational health and safety management systems
• Offered various recreational activities and training programs for employees
• Established a whistle-blowing system for reporting misconducts
• Implemented a zero-tolerance policy on child and forced labor

Governance Achievements

• Adopted the Model Code for Securities Transactions by Directors of Listed Issuers
• Established a remuneration committee, audit committee, and nomination committee
• Implemented a Business Ethics Standard and code of conduct with anti-corruption and anti-fraud policies

Climate Goals & Targets

Environmental Challenges

• Weak DSCs industry leading to decreased revenue
• Reduced efficiency in economies of scale
• Sino-US trade tensions
• COVID-19 epidemic affecting supply chain management
• Stringent environmental regulations in PRC

Mitigation Strategies

• Investing in technology and quality enhancement
• Product diversification efforts
• Strengthening financial structure
• Optimizing capability and improving automation/efficiency
• Upgrading environmental protection treatment facilities
• Monitoring the impact of global economy and COVID-19

Supply Chain Management

Supplier Audits: 97% of suppliers assessed; on-site inspections, audits, and self-assessments conducted

Responsible Procurement

• Supplier assessment program
• Code of conduct
• Green Procurement Management Standard
• Non-use Guarantee Statement for Prohibited Substances
• Conflict mineral investigations

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: HKEx ESG Reporting Guide

Certifications: ISO 14001, OHSAS 18001, GB/T 28001-2011, ISO 9001, IATF 16949

Environmental Metrics

ESG Focus Areas

• Occupational health and safety
• Environmental compliance
• Socio-economic compliance
• Prevention of child labour and forced labour

Environmental Achievements

• 5% decrease in the consumption intensity of electricity, vehicle fuel and natural gas (achieved 4.9%, 17%, and 19% respectively)
• 5% decrease in the generation intensity of waste (both hazardous and non-hazardous waste) and wastewater discharge (achieved 9%, 77%, and 11% respectively)
• 10% decrease in the consumption intensity of freshwater (achieved 61% reduction)
• 5% decrease in the usage intensity of carton box as packaging material (achieved 23% reduction)
• 10% decrease in the usage intensity of paper (achieved 51% reduction)

Social Achievements

• Established the “Yorkey Woman Programme” to support female staff
• Implemented a whistle-blowing system for employees to report misconducts
• Organized various recreational activities to promote work-life balance

Governance Achievements

• Adopted the Model Code for Securities Transactions by Directors of Listed Issuers
• Established a remuneration committee with written terms of reference
• Established an audit committee in compliance with Rule 3.21 of the Listing Rules

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacted supply chain management, leading to a global recession and weak market demand
• Continuous weak performance of the DSCs industry
• Decreased revenue and reduced efficiency in economies of scale
• Depreciation of the US dollar against the Renminbi resulting in exchange loss
• Stringent laws and regulations in the PRC for discharging air pollutants and factory activities
• Sino-US tensions created uncertainty in the global political and economic landscape

Mitigation Strategies

• Continued investment in technology and quality enhancement
• Efforts in product diversification to increase competitiveness
• Strengthening financial structure
• Optimizing capability, improving automation and efficiency to ensure product quality and proper expense control
• Compliance with relevant regulations in respect of environmental protection and corporate governance

Supply Chain Management

Supplier Audits: Regular supplier performance evaluations by means of on-site inspections, audits and self-assessments

Responsible Procurement

• Supplier Management Procedure
• Procurement Management Procedure
• Green Procurement Management Standard
• Code of Conduct
• Green Procurement Management Standard
• Conflict Minerals Management Standard

Climate-Related Risks & Opportunities

Physical Risks

• Acute risks
• Chronic risks

Transition Risks

• Policy and legal risks
• Technology risks
• Market risks
• Reputation risks

Opportunities

• Resource efficiency
• Energy source
• Products and services
• Markets
• Resilience

Reporting Standards

Frameworks Used: HKEx ESG Reporting Guide

Certifications: ISO 14001, ISO 45001, ISO 9001, IATF 16949