Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Compliant operation
• Employment management
• Social contribution

Environmental Achievements

• Reduced greenhouse gas emissions (Scope 1) from 672.26 tCO2e to 464.98 tCO2e.
• Replaced 800 LED energy-saving lamps in hotels, reducing average monthly electricity consumption by about 1,400 kWh.
• Implemented energy-saving measures in Just Stay Hotel, Panyu, Guangzhou, reducing average monthly electricity consumption by about 3,200 kWh.
• Installed air-conditioning waste heat recovery water tank, recovering 3,098 tons of hot water and saving about RMB20,000 of electricity fees.
• Increased application of SPC wallboard in various projects, reducing formaldehyde and other pollutants.

Social Achievements

• Organized various employee activities, including club activities, health activities, birthday celebrations, and year-end care.
• Launched the Panshi Programme for executive talent cultivation, with four trainees successfully promoted to project leader.
• Conducted 4 new employee training sessions with over 500 attendees.
• Improved property owner service with training, convenient services, and satisfaction surveys.
• Organized 45 community activities for property owners with over 3,000 attendees.

Governance Achievements

• Established an audit and supervision center with responsibilities for internal control management audit, supervision, special audit, and annual audit plan.
• Held 6 probity training sessions with 70 employees, covering 231 training hours.
• Received 5 whistle-blowing emails, launching in-depth investigations into 2 valid reports.
• Revised the Recruitment Management System and implemented a Supplier Management Measures.

Climate Goals & Targets

Environmental Challenges

• Escalating impact and challenges brought by the normalization of the global COVID-19 pandemic.
• Climate change risks (physical risks: typhoons, extreme rainfall, extreme temperatures, earthquakes; transition risks: climate-related policies, water security, increased insurance costs).
• Maintaining high quality standards in projects and services.

Mitigation Strategies

• Maintained a solid financial position while striving to comprehend government policy trends and innovate operating mindset.
• Developed typhoon emergency plans, adopted durable facilities and materials, and conducted emergency plan drills.
• Implemented quality control systems, established 13 new regulatory systems, and conducted quality inspections.
• Provided quality training for employees, focusing on engineering quality management.
• Implemented COVID-19 prevention and control measures in properties and hotels.

Supply Chain Management

Supplier Audits: 614 suppliers in PRC, 271 signed anti-corruption agreement, 66 with environmental and social policies.

Responsible Procurement

• Supplier Management Measures
• Material Supplier Management System
• Anti-corruption agreement
• Preference for suppliers with ISO certifications.

Climate-Related Risks & Opportunities

Physical Risks

• Typhoons
• Extreme heavy rainfall
• Extreme cold weather
• Extreme hot weather
• Earthquakes
• Global warming

Transition Risks

• Climate-related policy risks
• Water security risks
• Increased insurance costs

Opportunities

• Technological progress for reducing energy costs and transitioning to a low-carbon economy.
• Growing consumer preference for environmentally friendly products.
• Development of green finance in China.

Reporting Standards

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

UN Sustainable Development Goals

• Goal 3
• Goal 5
• Goal 8
• Goal 9
• Goal 10
• Goal 11
• Goal 13

Initiatives contribute to these goals through employee well-being, gender equality, economic growth, green building development, reduced inequalities, sustainable cities, and climate action.

Sustainable Products & Innovation

• Prefabricated buildings
• SPC wallboard

Awards & Recognition

• 2021 China Top 200 Real Estate Developers
• 2021 China’s Best Real Estate Enterprises with Greatest Growing Potential
• China Urban Renewal Brand Value Enterprises
• Top 20 of the 20th (2021) Creditworthy Property Developers of Guangdong
• 5th Chinese Soft Decor Award “Long Cheng Award” – Bronze Award
• Zhuzhou Outstanding Construction Award
• 12th YUANYE AWARDS – Real Estate Garden Demonstration Area Category Silver Award
• 2020–2021 Golden Award of International Environmental Art Innovation and Design Competition
• IIDA Award Innovation Award
• Hong Kong Asia Pacific Designer Contest 2021 – Model House Space (Real Scene) – “Supreme Award”
• Hong Kong Asia Pacific Designer Contest 2021 – Soft Outfit Design (Real Scene) – “Gold Award”
• Honorable Mention of International Design Awards in 2021

Environmental Metrics

ESG Focus Areas

• Product quality and safety
• Compliance and sound operation
• Anti-corruption and integrity training
• Reasonable development and ecological protection
• Green building
• Public charity and social services
• Employees’ interests protection
• Employees’ training and development opportunity
• Talent recruitment and team building
• Occupational health and safety
• Employees’ remuneration and benefits
• Supply chain environmental and social risk management

Environmental Achievements

• Replaced 105 pieces 40W halogen lamps with 3W LED downlights, saving about 9,500 KWH of electricity.
• Replaced energy-saving lamps in Clearwater Bay No. 3 project, saving about 16,534.5 KWH of electricity annually.
• Guangzhou Just Stay Resort implemented equipment retrofitting projects, saving RMB5,817,100 in energy consumption costs.
• Air conditioning waste heat recovery project recovered 6,760 tonnes of hot water.
• Active promotion of prefabricated buildings, with 363,600 sq.m. of prefabricated building area accounting for 52.6% of total project area.

Social Achievements

• Provided fair and competitive remuneration package and diversified benefit guarantees to employees.
• Provided 15 natural days of paternity leave to eligible male employees.
• Improved the flexibility of incentives and assessment for employees.
• Built a complete career development path for employees.
• Provided 15,100.5 total training hours for 873 employees (average 17.30 hours per employee).
• 100% complaint completion rate and 86% overall customer satisfaction rate in property management.
• 309 five-point positive reviews on Ctrip (88% increase compared to 2021) and 2,019 positive reviews from offline surveys in hotel operations.
• Invested RMB164,133 and assigned 49 people in public welfare activities.

Governance Achievements

• Established an Audit and Supervision Center and implemented anti-corruption training for directors and employees.
• Established a sound malpractice reporting and handling mechanism with multiple whistle-blowing channels.
• No violation of laws and regulations relating to bribery, extortion, fraud and money laundering.

Climate Goals & Targets

Environmental Challenges

• Resurgence of pandemic and macroeconomic fluctuation.
• Increasing frequency and severity of extreme weather events.
• Increasingly stringent carbon emission management requirements and green building design requirements.
• Increasingly stringent environmental regulations.
• Market and reputation risk due to less competitive advantage compared to competitors with better sustainability performance.

Mitigation Strategies

• Upholding core philosophy of sustainable development and promoting balanced development.
• Strengthening the identification and management of ESG risks.
• Developing extreme climate emergency plans, adopting more durable facilities and materials, and formulating safety risk prevention and control measures.
• Paying close attention to market and policy trends, accelerating innovative investment in green projects, and regularly upgrading assets.
• Prioritizing sustainability in renovation and new development projects, and keeping a close eye on customer satisfaction.

Supply Chain Management

Supplier Audits: 71 suppliers with ISO certification

Responsible Procurement

• Management Code for Suppliers
• Management System for Material Suppliers
• Sunshine procurement
• Green procurement practices
• Anti-corruption agreement

Climate-Related Risks & Opportunities

Physical Risks

• Increasing frequency and severity of extreme weather events

Transition Risks

• Climate-related policy risks
• Increasingly stringent environmental regulations
• Market and reputation risk

Opportunities

• Technological progress for reducing energy costs and transitioning to a low-carbon economy
• Growing consumer preference for environmentally friendly products
• Rapid growth of responsible investment and sustainable finance

Reporting Standards

Frameworks Used: Appendix 27 of the Rules Governing the Listing of Securities on the Stock Exchange

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 8: Decent Work and Economic Growth
• Goal 9: Industry, Innovation and Infrastructure
• Goal 11: Sustainable Cities and Communities

Initiatives contribute to these goals through occupational health and safety, employee development, green building, and community investment.

Sustainable Products & Innovation

• Prefabricated buildings
• Green building designs

Awards & Recognition

• Director Unit 2022–2026 (Guangdong Real Estate Industry Association)
• Best Pre-sale Property of the Year (Kinpan Award Committee)
• Zengcheng Craftmanship Quality Property (Zengcheng Real Estate)
• Excellent Property Service Enterprise (Yingde City Construction Industry Association)
• Outstanding Member Unit of 2022 (Zhuzhou Property Management Institute)
• Member Unit (Hunan Property Management Association)
• Star Property Services Project (Hunan Property Management Association, Zhuzhou Property Management Institute)
• Guangcai Star 2022 (Tengchong Federation of Industry and Commerce)