Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Formally included environmental protection into its operational objectives and responsibilities; committed to reducing harm to the natural ecology, improving energy consumption habits, encouraging responsible use of natural resources, and reducing waste.
• No non-compliance cases noted in relation to environmental laws and regulations as of 31 December 2016.

Social Achievements

• Maintained a high standard of corporate social responsibility and strictly complied with relevant laws and regulations.
• No non-compliance cases noted in relation to labour Standards law and regulations as of 31 December 2016.
• No non-compliance cases noted in relation to health and safety law and regulations as of 31 December 2016.
• No non-compliance cases noted in relation to health and safety, advertising, labelling and privacy matters as of 31 December 2016.
• No non-compliance cases noted in relation to corruption related laws and regulations as of 31 December 2016.

Governance Achievements

• Complied with all code provisions set out in the Code on Corporate Governance Practices during the year.
• All directors have complied with the required standard of dealings and code of conduct regarding securities transactions by directors.

Climate Goals & Targets

Environmental Challenges

• Economic uncertainties continue to grow in China in 2017.

Mitigation Strategies

• The Company will continue to improve the profitability of the Group by increasing the operation efficiency and reducing the overhead expenses.
• Measures have been and will be implemented continuously to improve the operation efficiency and to control production costs. Production will be more focused on higher-margin products and production of lower-margin products will be reduced to raise the overall profit margin of the Company.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• The factors that the Group takes into consideration during the selection of suppliers or contractors include: price, specification and quality of the product, service quality and product support.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Appendix 20 to the GEM Listing Rules

Third-party Assurance: Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Formally included environmental protection into its operational objectives and responsibilities since 2016.
• Focuses on energy-saving at office and environmentally-friendly production.
• No non-compliance cases noted in relation to environmental laws and regulations as of 31 December 2019.

Social Achievements

• Maintained a high standard of corporate social responsibility and strictly complied with relevant laws and regulations.
• No non-compliance cases noted in relation to labour Standards law and regulations as of 31 December 2019.
• No non-compliance cases noted in relation to health and safety law and regulations as of 31 December 2019.
• No non-compliance cases noted in relation to health and safety, advertising, labelling and privacy matters as of 31 December 2019.
• No non-compliance cases noted in relation to corruption related laws and regulations as of 31 December 2019.

Governance Achievements

• Complied with all code provisions set out in the Code on Corporate Governance Practices during the year.
• All directors have complied with the required standard of dealings and code of conduct regarding securities transactions by directors.

Climate Goals & Targets

Environmental Challenges

• Reduced profit margin on some products in the first quarter of 2019 to secure more orders.
• Land redevelopment plan impacting factory location.
• Impact of COVID-19 on restoration of production and operation since January 2020.

Mitigation Strategies

• Improved profitability by increasing operation efficiency and seeking new business opportunities.
• Accepted an offer to lease out a factory to centralize production and improve profitability.
• Took measures to avoid economic loss due to COVID-19, promoted employees’ home office and network office, and maintained close contact with suppliers and customers.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Internal control measures to ensure the impartiality of the process and the performance of all suppliers and contractors are reported and monitored.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GEM Listing Rules, Environmental, Social and Governance Reporting Guide

Third-party Assurance: Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Included environmental protection into its operational objectives and responsibilities since 2016
• Focuses on energy-saving at office and environmentally-friendly production
• No non-compliance cases noted in relation to environmental laws and regulations as of 31 December 2020

Social Achievements

• Maintains a high standard of corporate social responsibility and strictly complied with relevant laws and regulations
• No non-compliance cases noted in relation to labour standards law and regulations as of 31 December 2020
• No non-compliance cases noted in relation to health and safety law and regulations as of 31 December 2020
• No non-compliance cases noted in relation to health and safety, advertising, labelling and privacy matters as of 31 December 2020
• No non-compliance cases noted in relation to corruption related laws and regulations as of 31 December 2020

Governance Achievements

• Complied with all code provisions set out in the Code on Corporate Governance Practices during the year
• All directors have complied with the required standard of dealings and code of conduct regarding securities transactions by directors
• Established an audit committee, remuneration committee, and nomination committee in compliance with GEM Listing Rules

Climate Goals & Targets

Environmental Challenges

• Revenue decreased by approximately 7% over last year mainly because of (i) prevention and control of COVID-19; (ii) the termination of operation of two factories by end of 2019; (iii) the Company’s subsidiary, Special Cylinder, has leased a vacated factory for 15 years provides stable rental income for the Group which offset the negative results mentioned in (i) and (ii) above.

Mitigation Strategies

• Actively took measures to avoid economic loss during COVID-19, including promoting employees’ home office and network office
• Leased out a vacated factory to reduce overhead costs and provide stable income
• Entered into agreements to purchase properties for a new production plant expected to be completed in 2021

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Internal control measures to ensure the impartiality of the process and the performance of all suppliers and contractors are reported and monitored

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GEM Listing Rules Appendix 20

Third-party Assurance: Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Energy Conservation
• Lower Carbon Emissions
• Employment Practices
• Labor Standards
• Supply Chain Management
• Product Responsibility
• Anti-corruption
• Community Investment

Environmental Achievements

• Maintained carbon dioxide emissions at current levels; implemented energy-saving measures in offices and factories.

Social Achievements

• No work-related fatalities or lost days due to work injury in the past three years; maintained a 7% employee turnover rate; implemented training programs for employees.

Governance Achievements

• Complied with all code provisions in the Code on Corporate Governance Practices; established an audit committee and a remuneration committee; adopted a policy on board diversity.

Climate Goals & Targets

Environmental Challenges

• Potential delays or damage to products due to extreme weather events during transportation and storage; potential supply chain disruptions due to climate events.

Mitigation Strategies

• Close monitoring of weather forecasts and communication with suppliers and customers; inclusion of force majeure clauses in distribution agreements; use of video conferencing to reduce business trips.

Supply Chain Management

Responsible Procurement

• Yearly assessment of environmental and social risks; consideration of price, specification, quality, service quality, and product support.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather (typhoons, hurricanes, torrential rain) impacting transportation, storage, and business trips.

Reporting Standards

Frameworks Used: GEM Listing Rules ESG Reporting Guide