Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Obtained Forest Stewardship Council (FSC) certification by encouraging customers to select FSC certified wood flooring products.
• Gypsum block product certified as Green Building product with platinum rating under the Hong Kong Green Building Council Green Product Accreditation and Standards (HK G-PASS).

Social Achievements

• Awarded the “Caring Company” by the Hong Kong Council of Social Service.
• Participated in volunteer work organised by Food Angel.

Governance Achievements

• Established an Inside Information Policy.
• Established a Board diversity policy.
• Adopted the Model Code for Securities Transactions by Directors of Listed Issuers.

Climate Goals & Targets

Environmental Challenges

• Increased competition in timber flooring and gypsum block markets with aggressive pricing strategies.
• Postponement of a major woodwork project due to a change of main contractor.
• Soaring material costs and increasing labor costs.

Mitigation Strategies

• Introduced a new type of gypsum block product for hospitals.
• Improved operation efficiency and investment in new technology.
• Research and testing on new innovative products (heated flooring, radiation protection gypsum blocks).
• Developed and traded a new Smart Air-Purification System.

Supply Chain Management

Supplier Audits: annual performance appraisal

Responsible Procurement

• capable and competent suppliers and subcontractors are maintained in the Group’s Supplier/Subcontractor Register

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: ISO9001:2015, Forest Stewardship Council’s (FSC) Chain of Custody certification

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• heated flooring system
• radiation protection gypsum block products
• Smart Air-Purification System

Awards & Recognition

• Caring Company

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Obtained ISO 14001:2015 certification in 2019.
• Gypsum block product certified as Green Building product with platinum rating under HK G-PASS.

Social Achievements

• Awarded "Caring Company" by the Hong Kong Council of Social Service.
• Participated in volunteer work "Happy Cantonese Learning Workshop".

Governance Achievements

• Established three Board committees: Audit Committee, Remuneration Committee, and Nomination Committee.
• Adopted the Model Code for Securities Transactions by Directors of Listed Issuers.

Climate Goals & Targets

Environmental Challenges

• Decline in the number of properties completed in 2019, especially private residential properties.
• Uncertainty on government policy (Property Vacant Tax), macro-economic downturn, and social unrest slowed construction pace.
• COVID-19 pandemic caused temporary work suspension in the PRC, delaying material supply and construction.
• Increased competition with aggressive pricing strategies.

Mitigation Strategies

• Secured a large-scale public project under the 10 Year Hospital Development Plan.
• Introduced a new type of gypsum block product for hospital building material specifications.
• Exploring the interior decoration sector to utilize past experience and diversify business segments.
• Introduced a new type of gypsum block product with qualities fitting for building material specifications of hospitals in Hong Kong.
• Introduced floor heating system to the market, targeting customers seeking higher standard of living and the healthcare sector.

Supply Chain Management

Supplier Audits: Annual performance appraisal

Responsible Procurement

• Maintaining a master list of suppliers and subcontractors; Selection based on experience, skills, price, and quality; Annual performance appraisal

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: ISO 14001:2015, ISO 9001:2015, FSC Chain of Custody

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• New type of gypsum block product; Floor heating system

Awards & Recognition

• Caring Company

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Employee well-being
• Supply chain management
• Product quality and safety
• Customer data protection
• Anti-corruption

Environmental Achievements

• Obtained ISO 14001:2015 certification
• Obtained FSC certification for wood flooring products
• Gypsum block product certified as Green Building product with platinum rating under HK G-PASS
• Participated in the Energy Saving Charter 2020

Social Achievements

• Awarded "Caring Company"
• Implemented occupational health and safety measures under OHSAS 18001 certification
• Provided flexible working hours and work from home arrangement to minimize the impact of COVID-19
• Charitable donations of approximately HK$20,000

Governance Achievements

• Established a comprehensive management system and awarded ISO9001:2015 certification
• Established an Inside Information Policy
• Adopted a Board diversity policy
• Established a code of conduct on personal and professional conducts and guidelines on anti-bribery and anti-corruption conducts

Climate Goals & Targets

Environmental Challenges

• Increased number of competitors bidding for new projects at aggressive prices
• Economic downturn and COVID-19 pandemic
• Fluctuating cash flows pattern
• Inaccurate estimation on the cost and work programme of projects
• Irregular profit margin
• Failure to obtain new projects
• Customer concentration risk
• Uncertainties in business environment

Mitigation Strategies

• Improved the technicality of its gypsum block installation system
• Cost control measures
• Careful estimation of gross profit of each project before accepting a new bid
• Closely monitoring contract assets and taking follow-up action if needed
• Maintaining good relationships with customers, suppliers and subcontractors
• Implementing various preventive measures against COVID-19

Supply Chain Management

Supplier Audits: Annual performance appraisal

Responsible Procurement

• Maintaining a master list of suppliers and subcontractors
• Evaluating suppliers’ and subcontractors’ performance annually

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: ISO 14001:2015, OHSAS 18001, ISO 9001:2015, FSC

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Gypsum block
• SPC wall panels

Awards & Recognition

• Caring Company

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced CO2-e GHG emissions from 4,805.6 tonnes in 2021 to 4,519.5 tonnes in 2022 due to bulk purchasing of gypsum block products.
• Obtained ISO 14001:2015 certification since 2019.
• Obtained FSC certification by encouraging customers to select FSC certified wood flooring products.

Social Achievements

• Awarded "Caring Company" by the Hong Kong Council of Social Service.
• Established effective occupational health and safety (OHS) measures under the OHSAS 18001 certification.
• Maintained a healthy and safe working environment for employees and subcontractors.

Governance Achievements

• Established three Board committees: Audit Committee, Nomination Committee, and Remuneration Committee.
• Adopted the Model Code for Securities Transactions by Directors of Listed Issuers.
• Complied with the requirements under rules 3.10(1) and 3.10(2) of the Listing Rules relating to the appointment of at least three INEDs.

Climate Goals & Targets

Environmental Challenges

• Increasing competition on timber flooring products with competitors' aggressive pricing strategies.
• Drop in the number of private residential properties completed in 2021.
• Delays in commencement dates and work programmes of several newly awarded timber flooring projects due to the fifth wave of COVID-19 outbreak.

Mitigation Strategies

• Careful estimation of gross profit of each project before accepting a new bid.
• Securing several projects with considerable contract sums.
• Improving the technicality of its gypsum block installation system to maintain competitiveness.
• Exploring new markets to strengthen revenue sources.

Supply Chain Management

Supplier Audits: Annual performance appraisal

Responsible Procurement

• Engaging suppliers who act responsibly with regard to green supply chain management.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Stringent requirements in policies and regulations related to climate change

Opportunities

• Incorporating climate change considerations in procurement process and encouraging green purchase.

Reporting Standards

Frameworks Used: Null

Certifications: ISO 14001:2015, OHSAS 18001, ISO 9001:2015, FSC

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Gypsum block product certified as Green Building product with platinum rating under the Hong Kong Green Building Council Green Product Accreditation and Standards (HK G-PASS)

Awards & Recognition

• Caring Company

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Obtained ISO 14001:2015 certification since 2019.
• Gypsum block product certified as Green Building product with platinum rating under the Hong Kong Green Building Council Green Product Accreditation and Standards (HK G-PASS).
• Reduced GHG emissions to 2,129.3 tonnes CO2-e in 2023 from 4,519.5 tonnes CO2-e in 2022.

Social Achievements

• Awarded the “Caring Company” by the Hong Kong Council of Social Service.
• Established effective occupational health and safety (“OHS”) measures under the OHSAS 18001 certification.
• Maintained a healthy and safe working environment for employees and subcontractors.

Governance Achievements

• Adopted the Corporate Governance Code (CG Code) as corporate governance practices (with one exception: Chairman and CEO roles combined).
• Established three Board committees: Audit Committee, Nomination Committee, and Remuneration Committee.
• Adopted a Board diversity policy.

Climate Goals & Targets

Environmental Challenges

• Economic downturn, prolonged impact of the COVID-19 pandemic, elevated inflation, and consecutive rises in interest rates hindered performance.
• Delays and temporary suspension of projects, tightened budget from main developers.
• Increased competition and aggressive pricing strategies.

Mitigation Strategies

• Completed a mega-sized public project and a large-scaled public utility project.
• Introduced a new line of gypsum block products at a competitive price.
• Continued to focus on newly awarded projects under the 10-Year Hospital Development Plan.
• Implemented measures to reduce energy consumption (switching off appliances, procuring high-efficiency equipment).

Supply Chain Management

Supplier Audits: Annual performance appraisal

Responsible Procurement

• Engaging suppliers with responsible green supply chain management practices.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events impacting employee safety and productivity.

Transition Risks

• Stringent requirements in policies and regulations related to climate change, leading to higher operating costs.

Opportunities

• Incorporating climate change considerations in procurement, encouraging green purchases.

Reporting Standards

Frameworks Used: ESG Reporting Guide (Appendix 27 to the Rules Governing the Listing of Securities)

Certifications: ISO 14001:2015, OHSAS 18001, ISO 9001:2015, FSC’s Chain of Custody

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• FSC certified wood flooring products
• Gypsum block product with HK G-PASS platinum rating

Awards & Recognition

• Caring Company

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Obtained ISO 14001:2015 certification since 2019.
• Significant drop in CO2-e GHG emitted due to decrease in sales of German-made gypsum block products.

Social Achievements

• Awarded the “Caring Company” by the Hong Kong Council of Social Service.
• Established effective occupational health and safety (“OHS”) measures under the OHSAS 18001 certification.

Governance Achievements

• Adopted the Corporate Governance Code (the “CG Code”) as the Group’s corporate governance practices (except for the combined role of Chairman and CEO).
• Established three Board committees: Audit Committee, Nomination Committee, and Remuneration Committee.

Climate Goals & Targets

Environmental Challenges

• Economic downturn, elevated inflation, and consecutive rises in interest rates hindered the Group’s performance.
• Gloomy economy slowed down the recovery pace and property developers decelerated construction progress.
• Increasing competition on timber flooring products with competitors’ aggressive pricing strategy.
• Number of private residential properties completed in 2023 decreased over 30%.
• Commencement dates and work programmes of several newly awarded timber flooring projects were delayed.

Mitigation Strategies

• Adopted a cautious and disciplined approach in managing its businesses.
• Maintained sufficient bank balances and steady operating cash flows.
• Carefully estimated the gross profit of each project before accepting a new bid.
• Implemented measures to reduce energy consumption (switching off appliances, procuring energy-efficient equipment).
• Actively promoted water conservation among employees.
• Investigated incorporating climate change considerations in procurement and encouraged green purchases.
• Adopted flexible working arrangements and allowed employees to work from home in adverse weather conditions.

Supply Chain Management

Supplier Audits: Annual performance appraisal

Responsible Procurement

• Engaging suppliers who act responsibly with regard to green supply chain management.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events impacting employee safety and productivity.

Transition Risks

• Stringent requirements in policies and regulations related to climate change, leading to higher operating costs.

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: ESG Reporting Guide

Certifications: ISO 14001:2015, ISO 9001:2015, FSC’s Chain of Custody

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• SPC wall panels with anti-bacterial, eco-friendly properties.
• FSC certified timber flooring products.

Awards & Recognition

• Caring Company