Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Employee rights and interests
• Sustainable development
• Operations governance
• Community caring
• Anti-corruption

Environmental Achievements

• Total GHG emissions decreased by approximately 2%
• Overall volume of hazardous wastes decreased by 49%
• Electricity and water consumption decreased due to reduction in production output and staff headcount
• Maintained ISO14001: 2015 Environmental Management System and QC080000: 2017 Hazardous Substances Process Management System certifications

Social Achievements

• Average employee turnover rate was 3.5% (2021: 4.3%)
• Achieved zero work-related casualty during the year
• Received the “Happy Company” award for consecutive 9 years
• Accredited the “Happy Company 5 Years Plus” logo
• Received the “Caring Company 10 Years plus” and the “Industry Cares 5 Years Plus” logos

Governance Achievements

• Established an Environmental, Social and Governance Committee and Working Group
• Complied with the CG Code (except for Code Provision C.2.1, which was addressed by the Board)
• Established procedures for handling and disseminating inside information
• Complied with the Model Code for Securities Transactions by Directors of Listed Issuers

Climate Goals & Targets

Environmental Challenges

• Volatile conditions resulting from the Pandemic
• Critical component shortages
• Scarcity of shipping containers
• Omicron variant impacting China and Hong Kong
• Rising inflationary pressure
• Geopolitical tensions
• Lockdowns in certain cities in China
• Global shortage of critical components
• Shipping disruptions
• Inflation and escalating staff costs

Mitigation Strategies

• Stringent cost controls
• Workforce optimisation with increased automation
• Requesting clients to provide longer order forecast periods
• Placing orders with suppliers early
• Streamlining workforce
• Enhancing efficiency through automation
• Optimising workflow via production line integration
• Sharpening product development expertise
• Revamping existing products and co-developing new solutions
• Preparing raw materials in advance
• Establishing further partnerships with suppliers

Supply Chain Management

Supplier Audits: Annual audits for suppliers

Responsible Procurement

• Strict assessment on new suppliers before acceptance
• Ensuring suppliers satisfy requirements on quality control, environmental management, green product management, social responsibility, labour force, intellectual property rights management, product safety and anti-terrorism

Climate-Related Risks & Opportunities

Physical Risks

• Climate-related natural disasters

Transition Risks

• Changes in environmental protection regulations

Opportunities

• Minimising energy consumption and reducing greenhouse gas emissions

Reporting Standards

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

Certifications: ISO14001: 2015, QC080000: 2017, ISO9001:2015, IATF16949:2016

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Happy Company (9 years)
• Happy Company 5 Years Plus
• Good MPF Employer 2020-2021
• Caring Company 10 Years plus
• Industry Cares 5 Years Plus

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Social responsibility
• Employee well-being
• Operations governance
• Supply chain management
• Anti-corruption

Environmental Achievements

• Total GHG emissions decreased by approximately 6%
• Overall volume of hazardous wastes decreased by 23%
• Waste gas and wastewater emissions satisfied national and local emission standards

Social Achievements

• Achieved zero work-related casualty
• Received the “Happy Company” award for consecutive 10 years
• Received the “Good MPF Employer Award”
• Average employee turnover rate of 5.2%

Governance Achievements

• Established an Environmental, Social and Governance Committee
• Complied with the CG Code (except for deviation from Code Provision C.2.1)
• Implemented strict cost controls and streamlined the workforce to enhance efficiency
• Successfully obtained IPC QML Grade 1 and II certificates

Climate Goals & Targets

Environmental Challenges

• Increasing complexity of production process and upgraded requirements for the outward appearance of products leading to increasing overall carbon dioxide emission intensity
• Impact of the pandemic on the global supply chain
• Rising inflation and interest rates affecting consumption

Mitigation Strategies

• Prepared raw materials in advance and established further partnerships with suppliers
• Implemented energy conservation and emission reduction measures
• Introduced a circulating water treatment system to improve the wastewater filtration process
• Implemented measures to reinforce pillars, including the closure of an underperforming business and integration of production lines
• Introduced strict cost controls and streamlined the workforce

Supply Chain Management

Supplier Audits: Annual audits for suppliers

Responsible Procurement

• Strict assessment on new suppliers before acceptance

Climate-Related Risks & Opportunities

Physical Risks

• Climate-related natural disasters

Reporting Standards

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

Certifications: ISO 14001:2015, QC080000:2017, ISO9001:2015, IATF16949:2016, IPC QML Grade 1 and II

Third-party Assurance: PricewaterhouseCoopers

Awards & Recognition

• Happy Company award (10 years)
• Good MPF Employer Award
• Caring Company 10 Years plus
• Industry Cares 8 Years Plus

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Social responsibility
• Employee well-being
• Operations governance
• Supply chain management
• Anti-corruption

Environmental Achievements

• Maintained ISO14001:2015 and QC080000:2017 certifications.
• Reduced industrial wastewater discharge by 37%.
• Reduced non-methane hydrocarbons from assembling and molding process by 74%.
• Significant decrease in benzene, toluene, xylene and total VOCs from painting and pad printing process due to introduction of automatic painting line.
• Overall volume of hazardous wastes decreased by 27%.

Social Achievements

• Achieved "Happy Company" award for 11 consecutive years.
• Received "Good MPF Employer" award.
• Maintained zero work-related fatalities.
• Organized various employee activities to enhance cohesion and build mutual trust.
• Conducted exit interviews to improve employee management.

Governance Achievements

• Established Environmental, Social and Governance Committee and Working Group.
• Complied with the Corporate Governance Code (with one deviation explained in the report).
• Implemented a share option scheme (no options granted during the reporting period).

Climate Goals & Targets

Environmental Challenges

• Fluctuating market demand for electro-acoustic products.
• Global economic slowdown due to geopolitical conflicts, inflation, and tight monetary policies.
• One-off provision for inventory obsolescence (approximately HK$28.9 million).
• Impact of the pandemic on global supply chain.

Mitigation Strategies

• Market differentiation strategy targeting top-tier audio brands.
• Trendsetting through co-development of new products with key customers.
• Operational restructuring and streamlining to enhance cost control and efficiency.
• Establishment of a new production line with automated and semi-automated processes.
• Establishment of an offshore manufacturing base in Indonesia.
• Expansion into less consumer-sentiment-sensitive sectors (education, automotive, medical).

Supply Chain Management

Supplier Audits: Annual audits for suppliers

Responsible Procurement

• Strict assessment of new suppliers on quality control, environmental management, green product management, social responsibility, labor force, intellectual property rights management, product safety, and anti-terrorism.

Climate-Related Risks & Opportunities

Physical Risks

• Flooding and other extreme weather conditions

Transition Risks

• Changes in environmental protection regulations

Opportunities

• Development of energy-efficient products

Reporting Standards

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

Certifications: ISO 14001:2015, QC080000:2017, ISO9001:2015, IATF16949:2016, IPC QML Grade 1 and II

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Happy Company (11 years)
• Good MPF Employer
• Caring Company 10 Years Plus
• Industry Cares 8 Years Plus
• ESG+ Pledge Scheme