Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• ISO 14001:2015 and ISO 50001:2011 certifications
• Reduction of construction waste disposed of at landfills to approximately 30,046 tonnes (2018: 72,214 tonnes)
• Implementation of LED T8 lamps
• Reduction of dust emissions by applying water sprays and using canvas at construction sites
• Certain machineries complied with the emission standards of Stage IIA of the European Union

Social Achievements

• Recognised as a Family-Friendly Employer, Happy Company, and Manpower Developer
• Zero reportable accidents during the year
• Implementation of a formal whistle-blowing policy
• Annual corporate events for staff
• Charitable contributions totaling HK$250,000

Governance Achievements

• Compliance with the Corporate Governance Code
• Establishment of Board Committees (Audit, Nomination, Remuneration)
• Adoption of Board Diversity Policy
• Annual review of the effectiveness of internal control procedures
• Adoption of a Dividend Policy

Climate Goals & Targets

Environmental Challenges

• Decrease in the number of foundation contracts available
• Keen competition among market players
• Uncertainties in the execution of foundation works
• Conservative approach to certification and approval for foundation works valuation
• Continuous increase in direct labour and material costs

Mitigation Strategies

• Adjusting tendering strategies by widening customer base and implementing tight cost control
• Exploring suitable investment opportunities to broaden revenue base
• Exercising due care in pursuing existing core business and promoting development plans
• Closely monitoring global economy and foundation industry developments
• Implementing environmental management policy and internal principles to minimise wastage and avoid excessive usage of resources

Supply Chain Management

Supplier Audits: Regular visits for monitoring and inspecting the qualities of goods and work

Responsible Procurement

• Maintaining a list of approved suppliers and subcontractors

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Appendix 27 to the Listing Rules

Certifications: ISO 14001:2015, ISO 50001:2011, OHSAS 18001:2007, ISO 9001:2015

Third-party Assurance: Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Hong Kong Green Organisation Certification
• Energywise Certificate – Basic Level
• Family-Friendly Employer
• Happy Company
• Manpower Developer

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Renewed ISO 50001:2018 Energy Management System in April 2020 and upgraded it in May 2020
• Renewed ISO 14001:2015 Environmental Management System in April 2020 and upgraded it in April 2020
• Reduced dust emissions by applying water sprays and using canvas at construction sites
• Certain machineries complied with the emission standards of Stage IIA of the European Union

Social Achievements

• Recognised as a Family-Friendly Employer since 2014
• Recognised as a Manpower Developer in 2018
• Provided not less than 16,000 training hours to employees, especially for occupational safety trainings
• Adopted a formal whistle-blowing policy in the second quarter of 2017

Governance Achievements

• Complied with all the code provisions of the Corporate Governance Code (CG Code) except for the separation of Chairman and CEO roles.
• Adopted a Board Diversity Policy considering gender, age, cultural and educational background, etc.
• Arranged seminars for Directors as continuing professional trainings for corporate governance and compliance purposes.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions, workforce shortages, and work stoppages due to the COVID-19 pandemic
• Intense competition in the foundation industry
• Price fluctuation of raw materials

Mitigation Strategies

• Actively devoted efforts to prevent and control the spread of COVID-19
• Adopted different tendering strategies and fostered long-term relationships with quality customers
• Closely monitored the evolving situation and adjusted business strategies as required

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Maintains a list of approved suppliers and subcontractors based on various criteria

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Appendix 27 to the Listing Rules

Certifications: ISO 14001:2015, ISO 50001:2018, ISO 9001:2015, ISO 45001:2018, Hong Kong Green Organisation Certification, Energywise — Certificate — Basic Level

Third-party Assurance: Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Hong Kong Green Organisation Certification, Energywise — Certificate — Basic Level
• Family-Friendly Employer (since 2014)
• Manpower Developer (2018)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Achieved GHG emission target of 7,000 tonnes for the year ended 31 March 2022.
• Reduced construction waste disposed of at landfills to approximately 40,242 tonnes (2021: 172,840 tonnes).

Social Achievements

• Recorded zero reportable accidents during the year ended 31 March 2022 (2021: 3).
• Provided not less than 16,000 training hours to employees, especially for occupational safety trainings.

Governance Achievements

• Complied with all the code provisions, where applicable, as set out in the Corporate Governance Code (the “CG Code”) in Appendix 14 to the Rules Governing the Listing of Securities on the Stock Exchange (the “Listing Rules”), except for the separation of Chairman and CEO roles.
• Adopted a Board Diversity Policy considering gender, age, cultural and educational background, ethnicity, professional experience, skills, knowledge and length of service.

Climate Goals & Targets

Environmental Challenges

• Delay of works schedules of certain projects due to the outbreak of COVID-19.
• Completion of certain projects located in the Kai Tak Development area.
• Increase in construction costs.
• Unexpected increase in project costs due to unexpected changes in on-site arrangements and work schedules because of the COVID-19 outbreak.
• Intense competition in the foundation industry.
• Price fluctuation of raw materials.
• Price strategy of subcontractors and labor costs.

Mitigation Strategies

• Actively devoted efforts to facilitate the prevention and control of further spreading of the Epidemic in its premises and construction sites and to ensure the health and safety of its employees.
• Adopted different tendering strategies and fostered long-term relationships with different quality customers to maintain the Group’s competitiveness in the market.
• Implemented measures to protect staff from COVID-19, including regular disinfection, provision of masks and disinfection supplies, daily health reporting, flexible work hours, and regular monitoring of staff health status by department heads.
• Implemented environmental management policies and internal principles to minimize wastage and avoid excessive usage of precious resources (e.g., collecting and treating construction wastewater for reuse).

Supply Chain Management

Responsible Procurement

• Rigorous evaluation of potential suppliers and subcontractors considering product and service quality, company licenses, accreditations, and other qualifications.
• Annual performance evaluation of existing business partners considering qualifications, product quality, delivery time, after-sales service, and other factors.
• Consideration of product’s environmental criteria when generating purchase orders.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather (e.g., floods affecting construction sites)

Reporting Standards

Frameworks Used: Appendix 27 to the Listing Rules

Certifications: ISO 14001:2015, ISO 50001:2018, ISO 45001:2018, ISO 9001:2015

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Achieved GHG emission target of 7,000 tonnes for the year ended 31 March 2023.
• ISO 14001:2015 and ISO 50001:2018 certifications obtained.

Social Achievements

• Zero reportable accidents during the year ended 31 March 2023.
• ISO 45001:2018 certification obtained.
• ISO 9001:2015 certification obtained.

Governance Achievements

• Compliance with all applicable code provisions of the Corporate Governance Code, except for the separation of Chairman and CEO roles.
• Annual review of the effectiveness of risk management and internal control procedures.

Climate Goals & Targets

Environmental Challenges

• Repeated spread of COVID-19 pandemic.
• Significant increases in raw material prices.
• Surge in interest rates and labor costs.
• Decrease in work done after completion of certain large projects.

Mitigation Strategies

• Implemented measures to protect staff from COVID-19 (disinfection, masks, flexible work hours).
• Closely monitoring global economy and Hong Kong construction industry and adjusting business strategies as needed.
• Actively seeking development opportunities in new energy and new raw materials.
• Implementing environmental management policies to minimize waste and resource consumption.

Supply Chain Management

Responsible Procurement

• Rigorous evaluation of potential suppliers and subcontractors.
• Annual performance evaluation of existing business partners.
• Consideration of product’s environmental criteria when generating purchase orders.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather (e.g., floods)

Reporting Standards

Frameworks Used: Appendix 27 to the Listing Rules

Certifications: ISO 14001:2015, ISO 50001:2018, ISO 45001:2018, ISO 9001:2015

Environmental Metrics

ESG Focus Areas

• Environmental protection

Climate Goals & Targets

Environmental Challenges

• Labour shortages in Hong Kong construction sector
• Aging workforce in Hong Kong construction sector
• Potential adjustments in the Hong Kong housing market
• Rising interest rates
• Slowdown in the global economy
• Deteriorating operating environment in the Hong Kong construction industry

Mitigation Strategies

• Focus on strengthening liquidity position by reducing capital expenditures, managing debt levels and actively recovering outstanding receivables
• Disposal of non-profitable machineries to lower maintenance and storage costs
• Repayment of bank borrowings to reduce finance costs
• Negotiation of final accounts with customers for completed projects
• Close monitoring of developments in the Hong Kong foundation industry and plans to allocate resources to viable projects as market conditions improve
• Expansion of construction business in the PRC
• Plan to acquire a company with N-Methyl-2-pyrrolidone recycling and integrated utilization facilities

Supply Chain Management

Climate-Related Risks & Opportunities