Climate Change Data

Environmental Metrics

ESG Focus Areas

• Occupational Health and Safety
• Customer Privacy Protection
• Employee Relations
• Anti-corruption
• Customer Health and Safety

Environmental Achievements

• Complied with emission requirements under the MARPOL Convention and there was no incident related to air emission.
• Properly disposed of hazardous waste (oil rag and waste engine oil) and used toner cartridges were collected for recycling.
• Implemented energy-saving practices to conserve energy, including ensuring indoor temperature at an energy-efficient level, drafting operation schedule to adopt on-off and zoning control of lighting and ventilation system, requiring employees to switch off machines and devices when they leave or idling, procuring energy-efficient electrical appliances, adopting video conference calls to avoid unnecessary business-related travel, attaching “Green Message” reminders on office equipment and workplace, replacing with energy-efficient lights, and replacing the old aged air handling unit and other office equipment with more energy-efficient models.

Social Achievements

• Complied with all relevant labour laws and regulations in Hong Kong and PRC.
• Offered competitive remuneration and benefits package for full-time employees, including fixed monthly salary, leaves, fixed working hours, allowances, medical insurance, discretionary bonus and Mandatory Provident Fund Schemes or social insurance coverage.
• Implemented health and safety measures to prevent workplace illness or accidents, including establishing a reporting mechanism for workplace hygienic issues, installing air purifiers, prohibiting smoking and abuse of alcohol and drugs in the workplace, maintaining good housekeeping, providing adjustable chairs and monitors, attaching posters of proper working postures, participating in fire drills, and disseminating information on office safety and pandemic prevention regularly.
• Implemented a comprehensive COVID-19 Prevention & Outbreak Management plan onboard all vessels and a robust response plan and epidemic preventive measures for onshore employees.
• Offered training and development opportunities for employees at all levels.

Governance Achievements

• Established and adopted the Anti-Corruption Policy to strengthen the standards of conduct of its employees and ensure compliance with applicable laws.
• Adopted the Whistleblowing Policy to facilitate high standards of openness, probity and accountability.
• Complied with the Model Code as set out in Appendix 10 to the Listing Rules regarding Directors’ securities transactions.

Climate Goals & Targets

Environmental Challenges

• Delay of crew reliefs due to border closure and restriction of international travel during the COVID-19 pandemic.
• Fluctuating and unpredictable shipping demand due to the COVID-19 epidemic.
• Potential impacts of climate change, including extreme weather events and regulatory changes.
• Material uncertainties exist as to whether the Group can achieve the plans and measures described above to generate adequate cash inflow as scheduled.

Mitigation Strategies

• Extended contracted employment for crews and granted compensation with bonus.
• Closely monitored the COVID-19 pandemic situation to ensure crew changes were undertaken safely.
• Integrated safety management guidelines for vessel operation under adverse weather events and contingency plan for disruption of business operation.
• Actively pursuing additional financing, including debt financing and bank borrowings.
• Planning to raise funds through the capital market, such as placement or issue of corporate bonds.
• Enhancing operation of chartering business to improve cash flow from operations and control capital and operating expenditures.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier management system considering suppliers’ qualification, regulatory compliance, safety management, corporate background and reputation.

Climate-Related Risks & Opportunities

Physical Risks

• Increased intensity of extreme weather occurrences (e.g. typhoons, thunderstorms, and rainstorms)
• Longer-term shifts in extreme climatic patterns (e.g. flooding caused by rising seawater level, heatwave)

Transition Risks

• Policy risk (e.g., carbon emissions regulations, carbon taxes)
• Market risks (e.g., investor preferences for environmentally friendly businesses)

Opportunities

• Optimizing the energy efficiency of fleets
• Evaluating the feasibility of adopting potential green fuels

Reporting Standards

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

Certifications: null

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

• Water and Wastewater Management
• Employee Communication
• Occupational Health and Safety
• Elimination of Child and Forced Labor
• Corporate Governance
• Service Quality
• Critical Incident Risk Management

Environmental Achievements

• Maintained compliance with MARPOL, ISM Code, and other relevant regulations; no significant breaches of environmental laws and regulations reported.
• Implemented energy-saving practices in offices, including using LED lighting and energy-efficient appliances.
• Reduced paper consumption by 8% year-over-year.

Social Achievements

• No work-related fatalities or lost days due to work injuries.
• Implemented COVID-19 prevention and outbreak management plans for vessels and offices.
• Provided training and development opportunities for employees, with 61.1% of employees receiving training in 2022/23.

Governance Achievements

• Established and adopted an Anti-Corruption Policy and a Whistleblowing Policy.
• Maintained a Board with gender diversity (40% female).

Climate Goals & Targets

Environmental Challenges

• Significant decrease in dry bulk charter rates leading to impairment losses on vessels.
• Liquidity risk due to exceeding current liabilities over current assets.
• COVID-19 pandemic impacting crew changes and operations.

Mitigation Strategies

• Implemented cost-cutting measures and stringent expenditure control.
• Actively pursuing additional financing through debt financing, bank borrowings, and capital market activities.
• Extended repayment terms for loans and convertible bonds.
• Extended contracted employment with crew members and awarded bonuses to retain them during COVID-19 disruptions.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier management system evaluating qualifications, regulatory compliance, safety management, corporate background and reputation.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events causing damage to assets and operational disruptions.
• Long-term climate shifts impacting operations and employee well-being.

Transition Risks

• Policy changes increasing operating costs (e.g., carbon taxes).
• Market shifts favoring environmentally friendly vessels.

Opportunities

• Adopting energy-efficient technologies and green fuels.

Reporting Standards

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

Third-party Assurance: Not disclosed

Environmental Metrics

ESG Focus Areas

• Water and Wastewater Management
• Employee Communication
• Occupational Health and Safety
• Elimination of Child and Forced Labor
• Corporate Governance
• Service Quality
• Critical Incident Risk Management

Environmental Achievements

• Reduced Nitrogen oxides (NOx) emissions by 27.4% and Sulphur oxides (SOx) emissions by 28.0% compared to the previous year.
• Reduced total GHG emissions by 27.4% compared to the previous year.

Social Achievements

• Maintained a safe working environment with zero work-related fatalities and lost days due to work injuries.
• Increased average employee training hours from 3.2 to 4.8 hours per employee.

Governance Achievements

• Continued compliance with relevant laws and regulations.
• Implemented an anti-corruption and bribery policy and a whistleblowing policy.

Climate Goals & Targets

Environmental Challenges

• Significant net current liabilities (US$64,222,000) exceeding current assets.
• Outstanding convertible bonds (US$55,900,000) repayable within one year.
• Material uncertainty regarding the Group's ability to continue as a going concern.

Mitigation Strategies

• Actively negotiating with the Bondholder for an extension of the repayment date.
• Exploring various settlement proposals, including asset offers.
• Seeking additional financing through debt financing, bank borrowings, and capital market activities.
• Improving the operation of chartering dry bulk vessels and controlling capital and operating expenditures.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier management system evaluating business capability, material supplies, regulatory compliance, safety management, corporate background and reputation.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events causing damage to assets and operational disruptions.
• Long-term shifts in climatic patterns impacting operations and employee well-being.

Transition Risks

• Policy changes increasing operating costs.
• Market shifts towards environmentally friendly vessels.

Opportunities

• Maximizing energy efficiency of fleets.
• Exploring the use of green fuels.

Reporting Standards

Frameworks Used: Appendix C2 to the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited

Third-party Assurance: Not disclosed