Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Sustainable business development
• Employee well-being
• Stakeholder engagement
• Community support
• Supplier relations

Environmental Achievements

• Implemented an Enterprise Environmental Protection Management System Policy and a Safety Committee to comply with environmental regulations in PRC operations.
• Engaged an independent firm for quarterly environmental impact reviews.
• Implemented measures to minimize metallic dust and weld fumes emissions in PRC operations.
• Implemented waste management practices in compliance with PRC regulations, including using qualified recyclers for hazardous waste.

Social Achievements

• Implemented internal policies to comply with labor laws and regulations in Hong Kong and PRC.
• Established a Staff Handbook defining employee rights and procedures.
• Provided various types of internal training courses to employees.
• Established comprehensive policies covering occupational health, safety management, and machine operation rules.
• Developed emergency plans for production disruption, fire control, and industrial injuries.
• Implemented a Quality Management System and Process Policy to minimize product liability risk and ensure customer satisfaction.

Governance Achievements

• Established an Employee Feedback and Anti-corruption Policy with procedures for reporting corruption and fraud.
• Implemented measures to protect intellectual property rights, including confidentiality agreements and patent applications.
• Complied with relevant laws and regulations relating to prevention of bribery, extortion, fraud, and money laundering.

Climate Goals & Targets

Environmental Challenges

• Minimizing environmental impact of operations in PRC, including air pollution, greenhouse gas emissions, and waste generation.
• Ensuring compliance with labor laws and regulations in Hong Kong and PRC.
• Maintaining high product quality and customer satisfaction.
• Protecting intellectual property rights.

Mitigation Strategies

• Implemented environmental protection practices, including resource efficiency measures and waste management.
• Established internal policies and procedures to comply with labor laws and regulations.
• Implemented a Quality Management System and Process Policy, and established an experienced aftersales service team.
• Implemented measures to protect intellectual property rights, including confidentiality agreements and patent applications.

Supply Chain Management

Supplier Audits: Annual

Responsible Procurement

• Purchasing Policy covering procurement procedures, supplier selection criteria, and quality control on raw materials.

Climate-Related Risks & Opportunities

Reporting Standards

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

Environmental Metrics

ESG Focus Areas

• Environmental sustainability
• Employee attraction, retention, and support
• Stakeholder engagement
• Sustaining local communities
• Strengthening community relations
• Supplier commitment

Environmental Achievements

• Reduced Nitrogen Oxides emissions from 335.364 kg to 269.007 kg
• Reduced Sulphur Oxides emissions from 0.989 kg to 0.420 kg
• Reduced carbon dioxide emissions from 807,075.672 kg to 920,781.737 kg (Note: This shows an increase, not a reduction)
• Implemented measures to reduce electricity and raw material usage (details provided in report)
• Engaged qualified third-party recycling companies for waste disposal

Social Achievements

• Established a fair and reasonable remuneration regime
• Provided employees with statutory holidays, leave, and welfare benefits
• Organized four sessions of fire safety training (1677.5 hours total)
• Provided machinery operation training for production staff
• No work-related fatalities or lost days due to work injury during the reporting period

Governance Achievements

• Established internal policies in accordance with relevant labor laws and regulations
• Established an "Employee Feedback and Anti-corruption Policy"
• No incidents of non-compliance with labor laws or corruption during the reporting period

Climate Goals & Targets

Environmental Challenges

• Minimizing noise pollution from machinery operation
• Managing hazardous and non-hazardous waste generated in PRC operations

Mitigation Strategies

• Adopted noise control measures (sound insulation, vibration reduction, etc.)
• Engaged qualified third-party recycling companies for hazardous waste disposal
• Sold non-hazardous waste (paper, paper boxes, iron scraps) to recyclers

Supply Chain Management

Supplier Audits: Annual evaluation of approved suppliers

Responsible Procurement

• Established "Purchasing Policy" (採購管理制度)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: HKEX’s Guide to the ESG Report

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Employee Attraction, Retention, and Support
• Stakeholder Engagement
• Sustaining Local Communities
• Strengthening Community Relations
• Supplier Commitment

Environmental Achievements

• Reduced GHG emissions from 656,606.9 kg to 591,279.0 kg, achieving a GHG emissions intensity of 36.9 kg per unit produced.
• Reduced hazardous waste intensity.
• Reduced non-hazardous waste intensity.
• Reduced energy consumption from 1,437,140.8 kWh to 1,360,633.4 kWh.
• Reduced water consumption from 7,023.4 cubic meters to 3,838.0 cubic meters.

Social Achievements

• Zero work-related injuries and zero lost days during the reporting period.
• 78.2% of employees completed training, with an average of 2 training hours per employee.
• Employee turnover rate of 6%.

Governance Achievements

• Established an ESG Working Group to support the Board in implementing ESG strategies and targets.
• Complied with all relevant employment laws and regulations in Hong Kong and the PRC.
• No cases of non-compliance with laws and regulations relating to air pollution, GHG emissions, hazardous and non-hazardous waste during the reporting period.

Climate Goals & Targets

Environmental Challenges

• Potential transition risks from climate change (policy and legal changes, market shifts)
• Potential physical risks from climate change (extreme weather, changing temperatures)

Mitigation Strategies

• Regularly monitor regulatory environment and adhere to emission-reduction measures.
• Monitor product market and ensure products exceed customer demands.
• Maintain a large supplier base and set up contingency plans for extreme climate events.
• Adopt energy conservation measures.

Supply Chain Management

Supplier Audits: Annual evaluation of 77 suppliers.

Responsible Procurement

• Cautious selection of new suppliers based on criteria including size, products, services, quality, delivery time, cost-effectiveness, environmental impact, and child labour.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions (flooding, storms)
• Increased operating costs due to changing temperatures

Transition Risks

• Increased compliance costs due to new climate-related regulations
• Reduced demand for goods due to shifts in consumer preferences

Reporting Standards

Frameworks Used: HKEX ESG Reporting Guide