Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Energy Saving
• Resource Utilization
• Employment and Labor Practices
• Occupational Health and Safety
• Supply Chain Management
• Product Responsibility
• Anti-corruption
• Community Involvement

Environmental Achievements

• Waste gas discharge met or exceeded standard requirements for granule particle, gaseous sulphuric acid, benzene, methyl benzene, and dimethyl benzene.
• Wastewater discharge met or exceeded standard requirements for pH value, Chemical Oxygen Demand, Biochemical Oxygen Demand, Suspended Substance, and Ammonia.
• Total hazardous waste produced was nil due to in-house post-treatment.
• Recycled and reused over 205 tonnes of waste from its production process.

Social Achievements

• No non-compliance or violation in respect of labor affairs.
• Equal employment environment fostered with no workplace discrimination.
• Competitive remuneration packages offered to employees.
• No severe industrial accidents recorded in 2017.
• Zero days lost due to work injury in 2017.
• Implemented Staff Manual covering compensation, dismissal, promotion, working hours, recruitment, rest periods, diversity and other benefits and welfare.
• No violation regarding the age of employment and labor dispute in 2017.

Governance Achievements

• Established and implemented a whistle-blowing procedure to report non-compliance and questionable practices.
• No legal case concerned with corrupt practices was brought against the Company during the reporting period.
• Implemented ISO9001 and ISO14001 certifications.

Climate Goals & Targets

Environmental Challenges

• Reducing electricity and water consumption
• Managing waste and recycling
• Maintaining high standards of business ethics and combating corruption

Mitigation Strategies

• Designated a committee for specializing in resources saving strategy, implementing low carbon emission in operation, monitoring energy flow, and regularly assessing energy efficient performance.
• Upgrading existing equipment, improving various systems, and introducing new technologies to enhance energy efficiency.
• Conduction of water balance tests and installation of water meters to avoid water wastage.
• Implementing 5S workplace management and strict quality control procedures.
• Establishing a whistle-blowing procedure and maintaining a “zero tolerance” approach to fraudulent business activity.

Supply Chain Management

Supplier Audits: On-site appraisal of high-risk suppliers

Responsible Procurement

• Requires suppliers to provide certificates of compliance, comply with laws and regulations, operate in good faith, and adhere to business ethics.
• Implements the “Management Approach on Social Responsibility” and requires suppliers to enter into the “Social Responsibilities Commitment”.
• Prohibits the use of conflict minerals.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Appendix 27 to the Rules Governing the Listing of Securities released by Hong Kong Exchanges and Clearing Limited

Certifications: ISO 9001, ISO 14001

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Employment and Labour Practices
• Operating Practices
• Community Involvements

Environmental Achievements

• Reduced greenhouse gas emissions to approximately 1,800 tonnes.
• Recycled approximately 258 tonnes of waste from its production process.
• Achieved electricity conservation by regularly inspecting and supervising the electricity consumption across departments.
• Implemented energy saving transformation projects – upgrading existing equipment and implementing new technologies.

Social Achievements

• Maintained compliance with relevant labour standards and employment laws and regulations.
• No severe industrial accidents were recorded.
• Provided orientation and on-the-job training to employees.
• Implemented a staff manual covering compensation, dismissal, promotion, working hours, recruitment, rest periods, and other benefits.

Governance Achievements

• Established a whistle-blowing procedure to encourage reporting of non-compliance and questionable practices.
• Maintained compliance with labor ordinance and zero tolerance for sexual harassment, harassment and abuse in the workplace.
• No legal case concerned with corrupt practices was brought against the Company.

Climate Goals & Targets

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Certificate of compliance letter from suppliers
• Social Responsibilities Commitment
• Engagement letters of transaction integrity
• Letter of Undertaking of Prohibited Use of Conflict Minerals
• Guarantee of Environmental Management of Substances

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Hong Kong Exchanges and Clearing Limited’s “Environmental, Social and Governance Reporting Guide”

Certifications: ISO 9001, ISO 14001

Third-party Assurance: Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Employment and Labour Practices
• Operating Practices
• Community Involvements

Environmental Achievements

• Reduced greenhouse gas emissions to approximately 1,780 tonnes in 2020 (from 1,800 tonnes in 2019).
• Reduced total non-hazardous waste to approximately 425 tonnes in 2020 (from 430 tonnes in 2019).
• Maintained zero hazardous waste generation.

Social Achievements

• Maintained compliance with all relevant labor standards and employment laws.
• No severe industrial accidents or work-injury-related lost days.
• Provided various training programs for employee development.
• Implemented COVID-19 prevention measures, resulting in zero confirmed cases.

Governance Achievements

• Established a whistle-blowing procedure to address corruption and fraud.
• Maintained compliance with anti-corruption laws and regulations.
• Implemented ISO 9001 and ISO 14001 certifications.

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Comprehensive supplier audit assessments before admission of new suppliers.

Responsible Procurement

• Requires suppliers to provide a certificate of compliance letter.
• Implements the “Management Approach on Social Responsibility”, requiring suppliers to enter into the “Social Responsibilities Commitment”.
• Prohibits conflict minerals.
• Implements the “Guarantee of Environmental Management of Substances”.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Appendix 27 to the Rules Governing the Listing of Securities released by Hong Kong Exchanges and Clearing Limited

Certifications: ISO 9001, ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Employment and Labour Practices
• Operating Practices
• Community Involvements
• Climate Change

Environmental Achievements

• Reduced greenhouse gas emissions (Scopes 1 and 2) from 18,808 tonnes CO2e in 2020 to 15,329 tonnes CO2e in 2021.
• Reduced hazardous waste from 105 tonnes in 2020 to 67 tonnes in 2021.
• Recycled approximately 126 tonnes of waste from its production process in 2021.

Social Achievements

• Maintained compliance with relevant labor standards and employment laws and regulations.
• No work-related fatalities in the past three years.
• Provided orientation and on-the-job training to all employees.

Governance Achievements

• Implemented stringent measures to ensure the proper usage of customers’ intellectual property rights and confidential information.
• Established a comprehensive quality control system compliant with ISO 9001 and ISO 14001.
• Implemented a whistle-blowing procedure to encourage reporting of non-compliance and questionable practices.

Climate Goals & Targets

Environmental Challenges

• Potential disruptions to operations due to increased frequency and severity of extreme weather events.
• Stringent climate-related legislations and regulations.

Mitigation Strategies

• Close monitoring of local weather conditions and flexible work arrangements.
• Improving emergency plans and upgrading equipment to reduce impacts of extreme weather.
• Regular review of climate-related policies and measures to ensure compliance with government policies and regulatory updates.

Supply Chain Management

Responsible Procurement

• Requires suppliers to provide a certificate of compliance letter.
• Implements the “Management Approach on Social Responsibility” and requires suppliers to enter into the “Social Responsibilities Commitment”.
• Collaborates with suppliers to work against commercial briberies and any other illegal activities.
• Prohibits conflict minerals.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme cold, storms, heavy rainfall and typhoons

Transition Risks

• More stringent climate-related legislations and regulations

Reporting Standards

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

Certifications: ISO 9001, ISO 14001

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Employment and Labour Practices
• Operating Practices
• Community Investment
• Climate Change

Environmental Achievements

• Reduced major air pollutant emissions from 945.99 kg in 2021 to 217.69 kg in 2022.
• Reduced total greenhouse gas emissions from 8,770.93 tonnes in 2021 to 5,541.59 tonnes in 2022.
• Reduced non-hazardous waste generation from 465.0 tonnes in 2021 to 165.0 tonnes in 2022.
• Recycled approximately 73 tonnes of non-hazardous waste in 2022.

Social Achievements

• Maintained a safe working environment with only 1 confirmed case of non-compliance with laws and regulations related to production safety.
• Provided orientation and on-the-job training to employees, covering various aspects of operations and safety.
• Complied with relevant labor standards and laws, with no material non-compliance reported.

Governance Achievements

• Established a governance structure with the board overseeing ESG strategy and reporting.
• Implemented a whistle-blowing procedure to encourage reporting of non-compliance and questionable practices.
• Complied with relevant anti-corruption laws and regulations, with no legal cases reported.

Climate Goals & Targets

Environmental Challenges

• Decline in sales and shipments due to the easing of the COVID-19 pandemic and reduced demand for personal computers.
• Extreme weather events (typhoons, heavy rain, flooding, lightning, extreme heat) posing physical risks to operations and employee safety.
• Tightened government regulations related to climate change posing transitional risks.

Mitigation Strategies

• Regular vehicle maintenance to improve fuel efficiency and minimize air pollutant emissions.
• Implementation of measures to prevent and mitigate the negative effects of extreme weather (e.g., relocating materials, reinforcing equipment, improving emergency plans).
• Regular review of climate-related policies and measures to ensure compliance with government regulations.

Supply Chain Management

Responsible Procurement

• Requires suppliers to provide a certificate of compliance letter.
• Implements the “Management Approach on Social Responsibility” and requires suppliers to enter into the “Social Responsibilities Commitment”.
• Collaborates with suppliers to work against commercial briberies and any other illegal activities.
• Prohibits “conflict minerals” from suppliers’ procurement system.

Climate-Related Risks & Opportunities

Physical Risks

• Typhoons
• Heavy rain
• Flooding
• Thunder and lightning
• Extremely hot weather

Transition Risks

• Tightened laws and regulations imposed by the government
• Changes in customer preference due to climate-related concerns

Reporting Standards

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

Certifications: ISO 9001, ISO 14001, UL Product Certification

Environmental Metrics

ESG Focus Areas

• Employment management
• Responsible operations

Environmental Achievements

• Reduced air pollutant emissions (Sulphur Dioxide, Nitrogen Oxides, Particulate Matter) significantly compared to 2022.
• Reduced GHG emissions (Scope 1 and Scope 2) compared to 2022.
• Reduced hazardous waste generation significantly compared to 2022.
• Reduced non-hazardous waste generation significantly compared to 2022.
• Recycled approximately 22.6 tons of harmless waste.

Social Achievements

• Implemented comprehensive human resources policies and guidelines to manage employees’ compensation, dismissal, recruitment, and promotion processes. No cases of inequality reported.
• Provided a healthy and safe working environment; developed a fair mechanism for promotion; cared for employees by helping those in need and organizing employee activities.
• Strengthened quality management to ensure stable service standards, and entered into long-term strategic cooperation agreements.

Governance Achievements

• Complied with relevant laws and regulations in respect of anti-corruption.
• Established a working mechanism to identify, prevent, and mitigate climate change issues.

Climate Goals & Targets

Environmental Challenges

• Global inflation surge
• Fluctuation of material prices due to supply chain instability
• Increase in staff costs
• Shortage in semiconductor supply
• Increased market competition
• Decreased global demand for consumer goods
• Geopolitical risks
• US interest rate hike policy
• High inflation rate
• Tightened currencies of various major economies
• One instance of non-compliance with the Production Safety Law.

Mitigation Strategies

• Reforming of the management team and organizational structure to improve operational efficiency
• Tightened cost controls
• Adjustments on organization structure
• Exploring possibilities of relocating production facilities to lower-cost areas (South-East Asia)
• Exploring business opportunities in electric vehicle manufacturing and infrastructure
• Research and investment in Deep Technology and other innovative technology projects
• Implementing comprehensive policies to monitor cash flows through cutting costs and capital expenditure
• Negotiating with related parties and independent third parties to defer loan repayments
• Securing a letter of financial support from a controlling shareholder
• Implementing a rights issue (post-reporting period).

Supply Chain Management

Supplier Audits: Thorough audits before adding new suppliers; dedicated team for site assessments and performance improvements of high-risk suppliers.

Responsible Procurement

• Environmental responsibility requirements for suppliers
• Social responsibility commitment from suppliers
• Prohibition of conflict minerals
• Guarantee of Environmental Management of Substances

Climate-Related Risks & Opportunities

Physical Risks

• Typhoons
• Heavy rain
• Flooding
• Thunder and lightning
• Extreme heat

Transition Risks

• Policy and legal changes
• Technological advancements
• Market shifts
• Reputational factors

Reporting Standards

Frameworks Used: Appendix C2 of the Listing Rules issued by HKEX

Certifications: ISO 9001, ISO 14001, UL Product Certification