Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Employment and Labour Standards
• Operating Practice
• Community

Environmental Achievements

• No environmental-related issue that required reporting throughout the year.
• Achieved production safety without serious accidents throughout the year.
• Implemented environmental protection measures such as setting up dust screens, dust-prevention walls and nets; setting up water spraying equipment and improving the sprinkling system; setting up dust inspection system.

Social Achievements

• Provided a series of training to employees to improve their knowledge regarding business operation and safety guidelines.
• Strictly complied with the labour laws and relevant regulations in the PRC.
• Maintained a safe and healthy working environment for its staffs.
• No work-related fatality in the Group.

Governance Achievements

• Established ESG Working Group to help the Board to monitor and promote the implementation of various environmental, social and governance strategies.
• Complied with all environment-related laws and regulations.
• Established a flood prevention policy and procedure in order to reduce the risks caused by flooding.

Climate Goals & Targets

Environmental Challenges

• Impact of the COVID-19 pandemic on customers’ production, land transportation, shipping lane and schedule.
• Impact of floods on the economy and port operation.
• Rise of international trade protectionism, decrease in production of basic industries such as steelmaking and decrease in demand for non-metallic minerals.
• Increase in ocean freight and shortage of empty containers.
• Continuous expansion of environmental governance impacting mining corporations in Chizhou City.

Mitigation Strategies

• Adopted flexible business strategies for active response, opened up new markets proactively, consolidated current customer base, explored marginal customers, strengthened cost management, and enhanced corporate vitality.
• Arranged vaccination for all employees in Chizhou City and established various pandemic prevention measures.
• Fully contributed to promote marketing and enhance services, vigorously developed break-bulk cargo transportation market, focused on promoting “Bulk Cargoes to Containers” operation and expanding market share.
• Gradually expanded operations such as continuous line logistic, trading and agency services to extend the service chain of our ports.
• Made concerted efforts and made full use of advantages to broaden sources of income and reduce expenditure, capture opportunities, expand and move forward.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Set up a range of standards for selecting suppliers, which includes, inter alia, (1) quality of products; (2) capacity and reputation; (3) pricing of products; (4) timely supply of goods.

Climate-Related Risks & Opportunities

Physical Risks

• Intensified floods leading to asset loss or supply chain interruption.
• Continuous high temperature and extreme hot weather leading to increased electricity consumption, consequently affecting operation cost.

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GEM Listing Rules

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Air and greenhouse gas emissions
• Environmental aspects
• Energy consumption
• Climate change
• Employees’ health and safety
• Product responsibility

Environmental Achievements

• Achieved safe and environmental production without general or major accidents throughout the year, with the rate of minor accidents maintained within controllable range
• Good results in promoting the construction of ecologically green ports through the “three capabilities” in environmental protection (reception and treatment of domestic garbage on ships, domestic sewage and oily sewage), environmental protection enhancement constructions such as greening of the port area and Harbor Appearance Improvement Action etc.

Social Achievements

• Strictly complied with the labour laws and relevant regulations in the PRC and was not involved in any confirmed non-compliance relating to employment that would have a material impact on the Group.
• Provided a series of training to employees to improve their knowledge regarding business operation and safety guidelines.
• Did not have any fatalities in the past three years, including the reporting year; however, the Group recorded 3 cases of work-related injuries during the reporting year (2020: 6 cases).

Governance Achievements

• Complied with all environment-related laws, including but not limited to the Water Pollution and Prevention Law of the People’s Republic of China, the Law of the PRC on the Prevention and Control of Atmospheric Pollution, the Solid Pollution and Prevention Law of the People’s Republic of China, Cleaner Production Promotion Law of the People’s Republic of China and the Environmental Protection Law of the People’s Republic of China.
• Complied with all applicable national and local laws and regulations in relation to health and safety, including the Work Safety Law of the People’s Republic of China, the Law on Prevention and Control of the People’s Republic of China and the Law on Prevention and Control of Occupational Diseases, etc.
• Strictly adhered to various labour laws and regulations in the PRC, including but not limited to the PRC Labour Law, the PRC Labour Contract Law, and the PRC Social Insurance Law.

Climate Goals & Targets

Environmental Challenges

• Changing international situation and the pandemic cast impacts on the global production and logistics supply chain. The PRC’s economy is facing pressure such as shrinking demand, short supply and expected declining trend.
• Competition of the water transportation market in Chizhou City is fierce. It is expected that the container market condition of persistently high ocean freight and insufficient empty containers will continue in the short term. Adjustment of cargo transportation structure and changes in source of commodities will bring challenges to our port business.
• Restrictive factors are highlighted. The requirements for environment protection continuously increase. The dual carbon and dual limitation policy introduced by the PRC government has affected the market and economy. In addition, we also face more challenges in improving the standards for pollution prevention and control as well as emission control of our ports.

Mitigation Strategies

• Arranged vaccination for all our employees in Chizhou City and established various pandemic prevention measures which our employees are required to strictly follow.
• Adhere to the concept of “relying on ports for logistics and developing logistics for strengthening ports”, promote industrial development, accelerate the perfection of port service system, make up for shortcomings, improve quality and efficiency, prevent risks and be well prepared for better results in 2022.
• Strictly implement emission reduction measures, such as vehicle management measures, energy saving policies and green measures, to maintain a low emission level and operating cost
• Adhere to the Group’s sustainable development philosophy, strictly control services and operation processes to meet consumer and market expectations

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Quality of products
• Capacity and reputation
• Pricing of products
• Timely supply of goods

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions such as intensified floods leading to asset loss or supply chain interruption
• Continuous high temperature and extreme hot weather leading to increased electricity consumption

Transition Risks

• More stringent climate policies and regulations, such as stricter power constraints, may increase compliance cost

Opportunities

• Adopt energy saving policies and green measures to avoid excessive consumption of natural resources

Reporting Standards

Frameworks Used: GEM Listing Rules

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• National Outstanding Foreign Investment Enterprise
• Outstanding Foreign Investment Enterprise in Anhui Province and in Chizhou City
• Credible Enterprise of Yangtze River Transportation System
• Outstanding Transportation Enterprise in Anhui Province
• Grade A Tax Credit Enterprise in Anhui Province
• Multi-mode Transport Demonstration Project under the“14th Five-Year Plan”