Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Social Responsibility
• Governance

Environmental Achievements

• Reduced fuel usage by 18.2% compared to 2016
• Reduced water consumption by 36.9% in specific regions compared to 2016
• Promoted paperless office and paper recycling initiatives

Social Achievements

• Launched Mentors Support Program
• Conducted 460 in-house trainings with over 8,000 participants
• Implemented employee care activities (e.g., annual physical examination, meal subsidies)

Governance Achievements

• Established Internal Control Specification and Operational Risk Management Manual
• Formulated Honest Management System and Code of Supervision on Staff Independence
• Complied with relevant laws and regulations

Climate Goals & Targets

Environmental Challenges

• Air pollutant emissions from automobiles
• Managing carbon emissions from electricity and fuel usage

Mitigation Strategies

• Controlled number of cars and mileage
• Used online video conferencing to reduce business trips
• Reduced energy consumption

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Procurement principles, methods, and monitoring mechanisms

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Appendix 20 “Environmental, Social and Governance Reporting Guide” to the Rules Governing the Listing of Securities on GEM of The Stock Exchange of Hong Kong Limited

Certifications: ISO9000, IATF16949, CCC (China National Compulsory Product Certification Certificate), China Energy Saving Product Certification

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Numerous awards listed in the report (see page 4)

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Social Responsibility
• Governance

Environmental Achievements

• Obtained ISO14001 Environmental Management System certification
• Reduced nitrogen oxide and particulate matter emissions by 4.61% compared to the previous year.
• Reduced per capita water consumption by 6.4% compared to the previous year.

Social Achievements

• Implemented a staff promotion path and provided rich training courses.
• Improved compensation and benefits for employees.
• Obtained ISO45001 Occupational Health and Safety Management System Certification.
• No work-related fatalities or lost working days due to work-related injuries in the past three years.
• 100% staff training rate with an average training time of 7.1 hours per employee.

Governance Achievements

• Established an ESG Working Group composed of senior managers.
• Established the Internal Control Specification and Operational Risk Management Manual.
• Carried out specialized anti-corruption management training for all staff, including directors.
• No corruption proceedings brought against the Group or its employees in 2021.

Climate Goals & Targets

Environmental Challenges

• Recurrence of epidemics
• Industry changes
• Shortage of supply chain
• Extreme weather events (typhoons, snowstorms) posing risks to facilities and employees.

Mitigation Strategies

• Exploration and innovation to promote sustainable and healthy development.
• Purchasing insurance for storage and transportation to mitigate risks from extreme weather.
• Advocating green travel for employees and energy-saving measures.
• Timely alerting management of changes in climate-related policies and regulations.

Supply Chain Management

Supplier Audits: All suppliers were included in the supplier management system audit in FY 2021.

Responsible Procurement

• Supplier access audit system evaluating suppliers' qualifications, financial status, product quality, production and supply, service capacity, business licenses, etc.
• Issuing "Environmental, Occupational Health and Safety Notice" to some suppliers.
• Adding relevant contents of environmental, health and safety requirements into the terms of cooperation contracts.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather (typhoons, snowstorms) causing facility damage and employee injury.

Transition Risks

• Changes in climate-related policies and regulations.

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Appendix 27 to the Rules Governing the Listing of Securities on the Stock Exchange

Certifications: ISO14001, ISO45001, ISO9000, ISO20000, ITSS Level 2, ITSS cloud computing service capability standard compliance certificate (Level 2), CCC, China Energy Saving Product Certification, ISO27001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Market Pioneer Award (NUTANIX)
• First prize of "Wang Xuan Journalism Science and Technology Award"
• Outstanding Brand Image Award
• 2021 Top 10 Digital Ecology 500 Value-added Distributors
• 2021 Digital Ecology Distribution Leader Award
• 2021 Digital Ecology Digital Service Leader Award
• ZEISS Excellent Partner
• Outstanding Partner Award (HUAWEI)
• 2021 China Digital Ecological Growth Award
• Top 50 E-commerce Enterprises in Sichuan Province in 2020
• Top 10 Leading Enterprises of Digital Trade in E-commerce industry in 2020
• Excellent Pipeline supplier (Shandong Shengyang Power Source)
• New Talent Cooperation Award (Shandong Shengyang Power Source)
• Annual Excellent Partner Award (Vertiv Technology)
• Service Cooperation Standard Award (Vertiv Technology)
• 2020 Outstanding Contribution Award for General Agent (Schneider Electric)
• 2020 Best General Dealer Award
• Enterprises with outstanding tax contributions to the construction of "Four Strong Areas" in 2020
• 2020 Outstanding Contribution Award for Economic Work
• 2020 Business Excellence Award (Sichuan Changhong)

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Compliance Management
• Internal Risk Control
• Anti-corruption
• Environmental Protection
• Emissions
• Use of Resources
• Climate Change
• Relationship with Customers, Suppliers, Employees and other Stakeholders
• Employment
• Health and Safety
• Development and Training
• Labor Standard
• Upstream and Downstream Collaboration and Operation Management
• Quality Assurance
• Information Security
• Responsible Marketing and Promotion
• Customer Privacy
• Community
• Respect Intellectual Property

Environmental Achievements

• Reduced per capita electricity consumption involved carbon emissions by 37.21% compared to 2022.
• Achieved the objective of reducing fuel consumption per capita.
• Reduced paper usage by 6.0% year-on-year.
• Reduced water consumption by 11% from 2022.

Social Achievements

• 100% employee training rate with 859 training sessions and 23,396.8 training hours.
• No work-related fatalities or lost working days due to work-related injuries in the past three years.
• Employed 14 disabled persons.
• Overall employee turnover rate of 25.54% (2022: 29.60%)

Governance Achievements

• Established the Basic System of Compliance Risk Management and Internal Control Manual.
• No corruption lawsuit brought against the Group or its employees in 2023.
• All employees signed the "Commitment to Clean Practices".

Climate Goals & Targets

Environmental Challenges

• Complex and severe economic environment and insufficient demand.
• Increasing complexity, severity and uncertainty of the external environment and cyclical and structural contradictions of the internal environment (China's economy).
• Extreme weather events posing risks such as facility damage and employee injury.

Mitigation Strategies

• Swift response to market and competition changes, seizing market opportunities, promoting innovation and development, strengthening operation and management.
• Purchasing insurance for storage and transportation or requiring service providers to purchase insurance.
• Advocating green travel for employees, low-carbon energy saving and emission reduction, and improving the utilization efficiency of operational resources.

Supply Chain Management

Supplier Audits: 403 suppliers in North China, 39 in Northeast China, 489 in East China, 187 in South China, 94 in Central China, 135 in Southwest China, 54 in Northwest China, and 26 overseas suppliers.

Responsible Procurement

• Supplier access audit system evaluating qualifications, financial status, product quality, production and supply, service capacity, and business licenses.
• Issuing "Environmental, Occupational Health and Safety Notice" to some suppliers.
• Adding environmental, health, and safety requirements into cooperation contracts.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather (typhoons, snowstorms) leading to facility damage and employee injury.

Transition Risks

• Changes in climate-related policies and regulations.

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Stock Exchange's ESG Reporting Guide

Certifications: ISO 14001, ISO 45001, ISO9001, ISO20000, ISO27001, AEO, Level 2 of ITSS, ITSS cloud computing service capability standard compliance certificate (Level 2), CCC, China Energy Saving Product Certification

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Top 100 Service Enterprises and Top 50 Digital Economy Enterprises in Sichuan Province
• Top 100 Digital Trade Enterprises in China
• 2023 Sichuan E-Commerce Demonstration Enterprise
• Sichuan Model Enterprise of Integrity in 2023
• Certificate of Vice-Chairman Unit
• Pioneer Award at the Global Digital Trade Expo
• AAA Grade Credit Enterprise Award
• Certificate of Vice President of China Electronic Chamber of Commerce Digital Display Professional Committee
• 2023 China Top 50 VR Enterprises
• 2023 Outstanding Award in the Western Region
• National E-Commerce Demonstration Enterprise in 2023
• 2022 Most Influential Integrity Demonstration Enterprise in Sichuan Province
• Outstanding Service Enterprise in Digital Transformation in 2023
• 2023 Outstanding Digital Ecology Solution (Intelligent Manufacturing)
• 2023 Digital Ecology Outstanding Solution (Intelligent Education)
• 2023 Digital Ecology Cloud Computing Service Excellence Award
• 2023 Top 10 Service Provider of Digital Ecology Meta-Universe
• Top 10 Digital Ecology Value-Added Distributors in 2023
• 2023 Digital Transformation Driving Force Award
• 2023 ESG Exemplary Practice Award
• 2023 Influential Brand (Industry) Award
• 2022 Outstanding Contribution Enterprise in Tax Payment
• vice-chairman unit by the cross-border e-commerce working committee