Climate Change Data

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Implemented a safety management plan to ensure the safety of our construction projects and to avoid any potential health issues or workplace accidents.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Failure to secure new projects through tender process
• Concentration risk of heavy reliance on our largest and top five customers
• Operation results may be significantly affected if the availability of hotel and/or casino-related projects reduces
• Failure to receive progress or milestone payments or retention fees on time or in full
• Cash flows of our construction projects may fluctuate
• Risk of termination of banking facilities by the issuing bank
• Material underestimation of our tender price or overruns of our actual costs
• Delay of our projects
• Defect liability claim
• Changes in the prices and availability of raw materials
• Labour disputes
• Operational risks and occupational hazard on construction sites
• Weather conditions and other operating hazards
• Risk management and internal control policies and procedures may not fully protect us against various risks inherent in our business operations
• Claims or other proceedings
• Negative publicity
• Profit margins may not be indicative of our future profitability and we may have difficulty in managing our future growth
• Insurance policies may not be sufficient or adequate to cover all risks of loss or potential claims associated with our business operations
• Failure to obtain and/or renew registration or comply with the relevant rules and regulations governing the construction industry in Macau
• Intense competition
• Adverse changes in market conditions and economy in Macau
• No prior market for our Shares, and their liquidity and market price following the Global Offering may be volatile
• Controlling Shareholders have substantial influence over our Company, and the interests of our Controlling Shareholders and the Pre-IPO Investors may not be aligned with the interests of Shareholders who subscribe for Shares in the Global Offering
• Discretion as to how we will pay dividends
• Time gap between pricing and trading of our Shares
• Future sales or market perception of sales of a substantial number of our Shares in the public market
• Discretion as to how we will use the net proceeds of the Global Offering
• Immediate and substantial dilution
• Need to raise additional funds in the future
• Difficulties in protecting their interests under Cayman Islands law
• Analysts' reports may affect share price
• Undue reliance on facts, statistics and data
• Forward-looking statements are subject to risks and uncertainties

Mitigation Strategies

• Intend to apply approximately HK$100.0 million, representing approximately 43.0% of our net proceeds from the Global Offering to finance the payment of performance bonds in respect of new projects that we undertake.
• Plan to purchase a warehouse to strengthen our storage facilities for equipment and materials.
• Plan to improve and expand our (i) facilities management, alteration and maintenance works and services; and (ii) structural steelworks, civil engineering construction, and fitting out and renovation works by recruiting additional staff.
• Plan to enhance our machineries and equipment to expand our construction capacities.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Gold awards (Hong Kong – Macau Region) by CCMSA in 2013 for our structural steelworks for the large scale integrated resort and water-based extravaganza project, and in 2017 for our structural steelworks for the free-form exoskeleton skyscraper luxury hotel project and the ballroom and theatre roof structural steelworks of a Paris-themed casino resort in Cotai.
• Silver awards in recognition of our safety, management systems and subcontracting works from the Labour Affairs Bureau of the Macau government in 2016.

Environmental Metrics

ESG Focus Areas

• Emissions
• Waste Management
• Energy Consumption and Efficiency
• Noise Control
• Human Resources Management
• Workplace Health and Safety
• Employee Development and Training
• Responsible Supply Chain Selection and Management
• Product and Service Quality Management
• Preventing Bribery and Corruption
• Contribution to Society

Environmental Achievements

• Implemented various paperless measures to reduce paper consumption by 5.66 tonnes.
• Established and implemented energy-saving principles and initiatives, resulting in a total indirect GHG emissions of 6.29 tonnes CO2e.
• Implemented noise control measures at construction sites, including noise enclosures for piling rigs and restricted operating hours.

Social Achievements

• Established a structured recruitment and termination process.
• Implemented a comprehensive evaluation mechanism for employee promotion and remuneration.
• Maintained a zero-tolerance policy towards all forms of corruption and fraud.
• Donated MOP 20,000 to "Marcha De Caridade Para Um Milhao 2018" and provided student sponsorships.

Governance Achievements

• Established an Audit Committee, Remuneration Committee, and Nomination Committee.
• Complied with all code provisions set out in the Corporate Governance Code.
• Arranged appropriate insurance coverage on Directors’ and officers’ liabilities.

Climate Goals & Targets

Environmental Challenges

• Underestimation of tender price and project cost overruns.
• Uncertain external factors affecting the availability of construction projects in Macau.
• Intense competition in the construction market in Macau.

Mitigation Strategies

• Adopted a more competitive pricing strategy.
• Explored different options, including setting up joint ventures with large construction companies.
• Maintained a healthy liquidity position.
• Implemented stringent cost controls to ensure projects are completed smoothly.
• Enhanced operational efficiency and maintained price competitiveness.

Supply Chain Management

Supplier Audits: Regular evaluations such as on-site inspections are conducted.

Responsible Procurement

• Engaging supply chain partners with satisfactory environmental and social performance.
• Close communication and monitoring regarding environmental and social aspects.

Climate-Related Risks & Opportunities

Opportunities

• Introducing energy and water-efficient systems to clients.

Reporting Standards

Frameworks Used: ESG Reporting Guide

Certifications: ISO 14001:2015, OHSAS 18001:2007, ISO 9001:2015

Environmental Metrics

ESG Focus Areas

• Air and Greenhouse Gases Emissions
• Human Resources Management
• Waste Management
• Workplace Health and Safety
• Energy and Resources Consumption and Efficiency
• Employee Development and Training
• Noise Control
• Prohibition of Child Labour and Forced Labour
• Environmental Management System
• Responsible Supply Chain Selection and Management
• Climate Change
• Product and Service Quality Management
• Preventing Bribery and Corruption
• Contribution to Society

Environmental Achievements

• Obtained ISO 14001:2015 Environmental Management System Certification
• Actively exploring opportunities in sustainable projects and searching for green solutions
• Implemented various paperless measures under the “4R” principles
• Implemented initiatives to control electricity consumption and GHG emissions (e.g., switching off idle equipment, installing air curtains, using energy-efficient appliances)

Social Achievements

• Established a structured recruitment and termination process
• Established a comprehensive evaluation mechanism for employee promotion and remuneration
• Encourages work-life balance (e.g., fair working hours, annual leave, sick leave)
• Established an occupational health and safety management system accredited with OHSAS 18001:2007 certification
• Provided relevant training opportunities (e.g., induction programs, external courses)
• Established partnership with the University of Macau to sponsor academic prizes and scholarships
• Engaged in ongoing community work and charitable donations

Governance Achievements

• Adopted the code provisions set out in the Corporate Governance Code
• Complied with all the code provisions in the CG Code
• Established three Board committees: Audit Committee, Nomination Committee, and Remuneration Committee
• Established an internal control system to monitor major business activities to control fraud risks
• Engaged an independent internal control adviser to evaluate the adequacy and effectiveness of the internal control system

Climate Goals & Targets

Environmental Challenges

• Uncertain macro-economic environment and delays in government approval of construction projects
• Decreasing number of project tenders in the Macau construction industry
• Slowdown of the Chinese economy and the China-US trade war affecting the gaming industry
• Change of the Macau government leading to delays in project approvals
• Unexpected global outbreak of COVID-19 affecting visitor numbers and gaming facilities

Mitigation Strategies

• Closely monitoring the market environment and timely adjusting deployment
• Leveraging outstanding construction capability to achieve excellent results
• Establishing a joint venture with two subsidiaries of a state-owned enterprise
• Diversifying construction business to enhance profitability
• Securing alteration and addition works to increase market share
• Adapting quickly to requirements in alteration and addition works to minimize the impact of market fluctuations

Supply Chain Management

Responsible Procurement

• Requires subcontractors to implement sound waste management mechanisms
• Avoids overstocking of materials through effective inventory planning
• Segregates used materials for recycling
• Maintains strict control on hazardous waste
• Encourages subcontractors to use low-sulphur diesel and conduct regular inspections

Climate-Related Risks & Opportunities

Opportunities

• Investing in climate-related projects (e.g., food waste handling applications, energy efficiency enhancements, renewable energy development)

Reporting Standards

Frameworks Used: ESG Reporting Guide (Appendix 27 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited)

Certifications: ISO 14001:2015, OHSAS 18001:2007, ISO 9001:2015

Environmental Metrics

ESG Focus Areas

• Air and Greenhouse Gases Emissions
• Waste Management
• Energy and Resources Consumption and Efficiency
• Noise Control
• Environmental Management System
• Climate Change
• Human Resources Management
• Workplace Health and Safety
• Employee Development and Training
• Prohibition of Child Labour and Forced Labour
• Responsible Supply Chain Selection and Management
• Product and Service Quality Management
• Preventing Bribery and Corruption
• Contribution to Society

Environmental Achievements

• Obtained ISO 14001:2015 Environmental Management System Certification
• Actively exploring opportunities in sustainable projects and searching for green solutions
• Implemented various paperless measures under the “4R” principles
• Implemented energy-saving initiatives such as switching off idle equipment, installing air curtains, using energy-efficient appliances, and conducting regular maintenance

Social Achievements

• Established a structured recruitment and termination process
• Established a comprehensive evaluation mechanism for employee performance
• Encourages work-life balance
• Established an occupational health and safety management system accredited with OHSAS 18001:2007 certification
• No injuries or fatalities recorded for direct employees
• Provides relevant training opportunities, including induction programs and external courses
• Established partnership with the University of Macau to sponsor academic prizes and scholarships
• Engaging in ongoing community work and charitable donations

Governance Achievements

• Complied with all code provisions in the CG Code
• Complied with the Model Code for Securities Transactions by Directors
• Established three Board committees: Audit Committee, Nomination Committee, and Remuneration Committee
• Established an internal control system to monitor major business activities and prevent fraud
• Engaged an independent internal control advisor to evaluate the adequacy and effectiveness of the internal control system

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacted Macau's economy, particularly the gaming industry, leading to decreased tourism and construction project delays
• Supply chain disruptions due to the pandemic
• Large-scale development projects with higher initial setup costs and lower project costs in the middle and later stages
• Failure to secure new projects due to the competitive nature of the construction industry
• Underestimation of tender prices and project cost overruns
• Uncertain external factors such as economic, political, and social conditions in Macau

Mitigation Strategies

• Diversified its construction business to include E&M engineering services works
• Secured more than 20 projects during the year with a total value of over MOP1.2 billion
• Renewed three facility management services agreements for two years
• Proactively diversifying its revenue source and business scale by developing new businesses including E&M engineering services works and EV charging projects
• Entered into a memorandum of understanding with a US-listed Macau gaming operator to establish and operate an EV charging system
• Entered into a strategic partnership with Ubitricity for EV charging and billing solutions
• Participating in a residential building project for the installation of EV charger facilities in Hong Kong
• Entered into three five-year contracts for undertaking EV charging projects in China
• Strengthening corporate governance and talent training, acquiring new machines and equipment

Supply Chain Management

Responsible Procurement

• Requires subcontractors to implement sound waste management mechanisms and measures
• Engages supply chain partners with satisfactory environmental and social performances
• Conducts regular evaluations and on-site inspections

Climate-Related Risks & Opportunities

Opportunities

• Investing in climate-related projects such as EV charging solutions and renewable energy projects

Reporting Standards

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

Certifications: ISO 14001:2015, OHSAS 18001:2007, ISO 9001:2015

Sustainable Products & Innovation

• EV charging and billing solutions

Environmental Metrics

ESG Focus Areas

• Air and Greenhouse Gases Emissions
• Waste Management
• Energy and Resources Consumption and Efficiency
• Noise Control
• Environmental Management System
• Climate Change
• Human Resources Management
• Workplace Health and Safety
• Employee Development and Training
• Prohibition of Child Labour and Forced Labour
• Responsible Supply Chain Selection and Management
• Product and Service Quality Management

Environmental Achievements

• Obtained ISO 14001:2015 Environmental Management System Certification
• Implemented various paperless measures under the “4R” principles to reduce paper consumption
• Implemented energy-saving initiatives such as switching off idle equipment, installing air curtains, using energy-efficient appliances, and conducting regular maintenance
• Actively monitoring subcontractors' environmental performance and implementing green measures in projects
• Advocating the avoidance of ozone-depleting refrigerants and promoting the use of environmentally friendly ones
• Undertaking measures to control indirect GHG emissions
• Engaging in EV business, which contributes to a low-emission future

Social Achievements

• Established a structured recruitment and termination process under the Recruitment and Termination Policy
• Established a comprehensive evaluation mechanism for employee promotion and remuneration
• Encouraging work-life balance through fair working hours, work allocation, and leave provisions
• Organising group-subsidised staff gatherings to enhance communication and bonding
• Established an occupational health and safety management system accredited with OHSAS 18001:2007 certification
• Providing personal protective equipment to site workers and implementing preventive measures against emergencies
• Implementing flexible working arrangements to support work-from-home and avoid rush hour commuting
• Providing training opportunities, including induction programs and external courses
• Supporting employees in obtaining professional qualifications
• Forbidding unlawful employment, including child and forced labour
• Assessing the environmental and social performance of potential supply chain partners
• Implementing strict quality control and regular evaluations of subcontractors

Governance Achievements

• Adopted the Model Code for Securities Transactions by Directors of Listed Issuers
• Established three Board committees: Audit Committee, Remuneration Committee, and Nomination Committee
• Established a whistleblowing policy and anonymous communication channels
• Introduced an anti-corruption policy with specific behavioral guidelines
• Established an inside information handling policy
• Implemented a shareholders’ communication policy with various communication channels
• Amended and adopted the second amended and restated Articles of Association

Climate Goals & Targets

Environmental Challenges

• Failure to secure new projects due to the non-recurring nature of construction projects and difficulty in forecasting future business volume
• Underestimation of tender price and project cost overruns due to unexpected circumstances
• Uncertain external factors such as Macau government policies, investment by property developers and casino operators, and general economic conditions
• Epidemic outbreaks (COVID-19) impacting supply chain delivery, increasing project costs, and causing suspension of business activities

Mitigation Strategies

• Diversifying project portfolio into different areas such as maintenance works, energy infrastructure, and government projects
• Implementing rigorous estimating and tendering processes within the risk management framework
• Defining delegated authority levels for approving tenders and conducting post-tender reviews
• Leveraging existing customer relationships and seeking new international business opportunities
• Developing contingency plans to address epidemic outbreaks, initiating epidemic prevention measures, and fulfilling projects on schedule
• Offering hotel accommodation and staff quarters for PRC staff during cross-border restrictions

Supply Chain Management

Responsible Procurement

• Requiring subcontractors to operate in an environmentally friendly manner
• Assessing the environmental awareness and management mechanisms of potential supply chain partners
• Stringently managing suppliers and subcontractors to avoid inferior or non-environmentally friendly materials or services
• Maintaining a list of approved suppliers and subcontractors
• Maintaining close communication and monitoring regarding their environmental and social practices
• Conducting regular evaluations such as on-site inspections

Climate-Related Risks & Opportunities

Physical Risks

• extreme climate events like typhoon and flooding

Transition Risks

• changing regulatory requirements

Opportunities

• EV business

Reporting Standards

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

Certifications: ISO 14001:2015, OHSAS 18001:2007, ISO 9001:2015

Awards & Recognition

• Listed Enterprises of the Year 2022
• Outstanding Performance – Best Business and Financial Performance
• Annual Small and Mid-Cap Growth Value Award

Environmental Metrics

ESG Focus Areas

• Air and Greenhouse Gases Emissions
• Waste Management
• Energy and Resources Consumption and Efficiency
• Noise Control
• Environmental Management System
• Climate Change
• Human Resources Management
• Workplace Health and Safety
• Employee Development and Training
• Prohibition of Child Labour and Forced Labour
• Responsible Supply Chain Selection and Management
• Product and Service Quality Management
• Preventing Bribery and Corruption
• Contribution to Society

Environmental Achievements

• Obtained ISO 14001:2015 Environmental Management System Certification
• Actively exploring opportunities in sustainable projects and searching for green solutions
• Implemented various paperless measures under the “4R” principles to reduce paper consumption
• Implemented energy-saving initiatives such as switching off idle equipment, installing air curtains, using energy-efficient appliances, and conducting regular maintenance

Social Achievements

• Established a structured recruitment and termination process
• Established a comprehensive evaluation mechanism for employee promotion and remuneration
• Encourages work-life balance through fair working hours and leave provisions
• Established an occupational health and safety management system accredited with ISO 45001:2018
• Provided training opportunities for employees, including induction programs and external courses

Governance Achievements

• Adopted the code provisions set out in Part 2 of the Corporate Governance Code
• Established three Board Committees: Audit Committee, Remuneration Committee, and Nomination Committee
• Established a whistleblowing policy and anonymous communication channels
• Introduced an anti-corruption policy in January 2022

Climate Goals & Targets

Environmental Challenges

• Failure to secure new projects and sales orders
• Underestimation of tender price and project cost overruns
• Uncertain external factors (Macau government policies, investor investment, general economic conditions)
• Impairment losses for trade receivables due to customer default

Mitigation Strategies

• Diversified project portfolio into maintenance works, energy infrastructure, and government projects
• Leveraged existing customer relationships and sought new international business opportunities
• Rigorous estimating and tendering processes within the risk management framework
• Defined delegated authority levels for approving tenders
• Monitored and maintained adequate cash and cash equivalents to finance operations

Supply Chain Management

Supplier Audits: Regular evaluations such as on-site inspections

Responsible Procurement

• Encouraging subcontractors to implement sound waste management mechanisms
• Prioritising the use of green and recyclable materials and equipment
• Strict quality control and maintaining a list of approved suppliers and subcontractors

Climate-Related Risks & Opportunities

Physical Risks

• Extreme climate events like typhoon and flooding

Transition Risks

• Changing regulatory requirements for carbon neutrality

Opportunities

• EV business expansion

Reporting Standards

Frameworks Used: ESG Reporting Guide (Appendix C2 of the Listing Rules)

Certifications: ISO 14001:2015, ISO 45001:2018, ISO 9001:2015

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• EV charging systems
• Battery-swapping systems

Awards & Recognition

• Not disclosed