Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• People (Employment, Health & Safety, Training & Development, Labour Standards)
• Supply Chain Management
• Food Safety and Quality Assurance
• Anti-corruption
• Community Investment

Environmental Achievements

• Reduced NOx emissions from 0.080 tonnes to 0.065 tonnes
• Reduced PM emissions from 0.0060 tonnes to 0.0047 tonnes
• Reduced Scope 2 GHG emissions by approximately 23%
• Reduced Scope 3 GHG emissions (fresh water and sewage water processing) by approximately 23%
• Reduced Scope 3 GHG emissions (business travel) by approximately 29%
• Reduced intensity of water consumption per restaurant property floor area from 28.75 cubic meters to 26.81 cubic meters
• Reduced intensity of electricity consumption per restaurant property floor area from 1144.36 kWh to 1056.03 kWh
• Reduced intensity of gas consumption per restaurant property floor area from 64.82 MJ to 49.72 MJ

Social Achievements

• Zero fatal accidents reported during the reporting period
• Maintained a low staff turnover rate
• Provided comprehensive on-the-job training and clear career paths to employees
• Implemented stringent quality control procedures to ensure food safety and quality
• Minimal and insignificant number of complaints related to food or service quality

Governance Achievements

• Established whistle-blowing procedures to encourage reporting of misconduct
• Complied with relevant laws and regulations regarding anti-corruption and money laundering
• No concluded legal cases regarding corrupt practices

Climate Goals & Targets

Environmental Challenges

• Lack of a reporting mechanism to gather information on non-hazardous waste generated
• Need to further develop energy conservation norms among staff

Mitigation Strategies

• Plans to implement a comprehensive data collection mechanism for non-hazardous waste
• Continued staff training to promote energy conservation

Supply Chain Management

Supplier Audits: Regular supplier reviews

Responsible Procurement

• Supplier selection criteria including pricing, quality, reputation, service, agility, delivery efficiency, and past performance
• Sourcing from multiple approved suppliers to minimize risk

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Stock Exchange of Hong Kong Limited’s Environmental, Social and Governance Reporting Guide

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Michelin Guide Hong Kong Macau
• Best of the Best Culinary Awards

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Employee Well-being
• Supply Chain Management
• Food Safety and Quality
• Anti-corruption
• Community Investment

Environmental Achievements

• Reduced energy indirect emissions by approximately 13%
• Reduced electricity for processing fresh water and sewage water by approximately 47%
• Reduced business air travel by employees by approximately 95%
• Decreased intensity of water consumption per restaurant property floor area from approximately 27 cubic meters to approximately 14 cubic meters

Social Achievements

• Maintained a low staff turnover rate
• Zero fatal accidents in the workplace
• Provided comprehensive on-the-job training and clear career paths to employees
• Actively involved in charitable activities

Governance Achievements

• Established a comprehensive data collection system to monitor vehicle usage and maintain efficiency
• Implemented stringent quality control procedures and food safety policies
• Established whistle-blowing procedures to encourage reporting of misconduct
• Complied with relevant laws and regulations regarding anti-corruption and money-laundering

Climate Goals & Targets

Environmental Challenges

• Limited operation of restaurants due to anti-infection measures
• Lack of reporting mechanism for non-hazardous waste generated
• Need to further develop energy conservation norms among staff

Mitigation Strategies

• Implemented various environmental policies and measures to mitigate risks brought by climate change
• Promoting energy saving measures and habits in office
• Planning to implement comprehensive data collection mechanism in respect of the non-hazardous waste disposed
• Internal training to create a sense of urgency to all staff about the monitoring of water and gas usage

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier selection system based on pricing, quality, reputation, service, agility, delivery efficiency and past performance
• Sourcing major raw materials from more than one approved supplier
• Regular supplier reviews to ensure product quality and safety
• Requirement for suppliers to hold valid licenses and imported goods to obtain proper clearance

Climate-Related Risks & Opportunities

Physical Risks

• Storms, fires, heatwaves

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Stock Exchange of Hong Kong Limited’s Environmental, Social and Governance Reporting Guide

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Michelin Guide Hong Kong Macau
• Best of the Best Culinary Awards

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Social responsibility
• Governance

Environmental Achievements

• Reduced NOx and SOx emissions from vehicle usage; implemented energy-saving measures (LED lighting, switching off appliances); waste cooking oil collected for recycling

Social Achievements

• Implemented stringent quality control procedures for food safety and hygiene; provided various training programs for employees; maintained a low rate of work injuries

Governance Achievements

• Established Board committees (Remuneration, Nomination, Audit); implemented a board diversity policy; maintained a policy on disclosure of inside information

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic significantly impacted customer flow and revenue; high staff and food costs; reluctance of landlords to grant significant rent concessions; multiple fundamental uncertainties relating to going concern

Mitigation Strategies

• Closed underperforming restaurants in Hong Kong and Macau; implemented cost-saving measures; negotiating with landlords for rent concessions; considering other financing arrangements; considering a rights issue; financial support from a director

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier selection criteria based on pricing, quality, reputation, service, and past performance; sourcing from multiple suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Storms, floods, heatwaves disrupting supply chains

Transition Risks

• Changes in laws and regulations; changes in customer preferences

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GEM Listing Rules Appendix 20

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Michelin Guide Hong Kong Macau
• Best of the Best Culinary Awards

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Climate change
• Health and safety
• Supply chain management

Environmental Achievements

• Reduced NOx emissions by approximately 84%, SOx emissions by approximately 67%, and PM emissions by approximately 70% due to substantial reduction in vehicle usage.
• Reduced energy indirect emissions by approximately 27%.

Social Achievements

• Implemented various safety policies for restaurants to prevent accidents and injuries.
• Provided comprehensive on-the-job training and clear career paths to employees.

Governance Achievements

• Established dedicated teams to manage ESG issues within each business division.
• Implemented anti-corruption training for all employees.

Climate Goals & Targets

Environmental Challenges

• Economic downturn, weakened consumption sentiments due to the COVID-19 pandemic, stringent anti-epidemic measures, and social distancing policies.
• Sluggish economy and weak market sentiments in Hong Kong.
• High staff costs and food costs despite economic slowdown.
• Landlords' reluctance to grant significant rental concessions.

Mitigation Strategies

• Adjusted business strategy to close underperforming restaurants.
• Implemented cost control measures to reduce operating costs and overheads.
• Negotiated with landlords for rental concessions.
• Rolled out proactive promotions and discounts to attract diners.
• Exploring alternative investment opportunities for smaller-scale operations across multiple cuisines.

Supply Chain Management

Responsible Procurement

• Supplier selection criteria including pricing, quality of ingredients, reputation, service, agility, delivery efficiency, and past performance.
• Sourcing from multiple approved suppliers to minimize risk.
• Requiring suppliers to hold valid licenses and comply with food labelling, hygiene, and sanitary regulations.

Climate-Related Risks & Opportunities

Physical Risks

• Storms, fires, heatwaves causing supply chain disruptions

Transition Risks

• Changes in laws and regulations, changes in customer preferences

Reporting Standards

Frameworks Used: GEM Listing Rules

Awards & Recognition

• Michelin Guide Hong Kong & Macau
• Best of the Best Culinary Awards

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Climate change
• Health and safety
• Supply chain management

Environmental Achievements

• Reduced NOx emissions by approximately 94.29%, SOx emissions by 70%, and PM emissions by 66.67% due to reduced vehicle usage.
• Reduced energy indirect emissions by approximately 17% due to the closure of a restaurant in 2022.

Social Achievements

• Implemented various quality control procedures to enhance food safety and quality assurance.
• Provided comprehensive on-the-job training and clear career paths to employees.
• Maintained a low rate of work-related accidents and injuries with zero fatal accidents.

Governance Achievements

• Adopted an anti-bribery and anti-corruption policy.
• Implemented a Whistleblowing Policy.

Climate Goals & Targets

Environmental Challenges

• Deteriorating economy and significant disruption to operations due to the COVID-19 pandemic.
• Current liabilities exceeded current assets by approximately HK$129,933,000, and the Group had net liabilities of approximately HK$102,379,000 as at 31 December 2023.
• High gearing ratio of approximately 336.5%.

Mitigation Strategies

• Implemented various measures to streamline operations, improve operating efficiency, and reduce costs.
• Actively negotiating with the bank for the renewal of bank borrowings.
• Considering other financing arrangements to increase capitalization/equity.
• Implementing stronger measures to improve liquidity and financial position, including closely monitoring operating costs.
• Planning for equity fund-raising exercises (rights issue, issue of new shares and/or convertible bonds).
• Exploring alternative debt financing options.
• Developing and exploring different business opportunities.

Supply Chain Management

Responsible Procurement

• Supplier selection system based on pricing, quality, reputation, service, agility, delivery efficiency, and past performance.
• Sourcing from multiple approved suppliers to minimize risk.

Climate-Related Risks & Opportunities

Physical Risks

• Storms, fires, heatwaves causing supply chain disruptions

Transition Risks

• Changes in laws and regulations, changes in customer preferences

Reporting Standards

Frameworks Used: ESG Guide of the Stock Exchange of Hong Kong Limited

Awards & Recognition

• Michelin Guide Hong Kong & Macau
• Best of the Best Culinary Awards