Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Social Responsibility
• Corporate Governance

Environmental Achievements

• Implemented energy-saving measures such as maximizing natural light, using energy-efficient lighting systems, setting optimal temperatures for air conditioning systems, installing energy-efficient office equipment, turning off air conditioning and lighting after office hours, and turning off idle office equipment.
• Reduced paper consumption through encouraging employees to assess the necessity of printing, opting for double-sided printing, reusing single-sided printed paper, and promoting electronic communication.

Social Achievements

• Maintained close relationships with employees, strengthened cooperation with suppliers, and provided quality products and services to customers to ensure sustainable development.
• Provided additional employee benefits including festival benefits, annual health check-ups, incentive programs, and bereavement leave and allowances.
• Implemented a comprehensive training system, including customized training courses, to assist employees at different levels in acquiring knowledge and relevant skills.
• Established reporting channels for employees to voice concerns without fear of negative repercussions.
• Actively participated in community and public welfare activities, including funding 10 underprivileged students and organizing service trips to assist underprivileged youth.

Governance Achievements

• Established an internal audit department to continuously and systematically review the Group's risk management and internal control systems.
• Engaged independent professional service providers to conduct annual reviews of the Group's internal control and risk management systems, policies, and procedures.
• Established three board committees: Audit Committee, Nomination Committee, and Remuneration Committee.

Climate Goals & Targets

Environmental Challenges

• Internal control deficiencies in cash and bank management operations, leading to discrepancies in bank statements.
• Competition in the financial services platform market.
• Risks related to cybersecurity due to handling large amounts of customer data.
• Risks associated with the Chinese property market, including government policies, legal environment, socio-economic factors, and consumer confidence.
• Potential for breaches of the Pawnbroking Management Measures.

Mitigation Strategies

• Engaged two international independent professionals to conduct internal reviews of the Group's internal control systems, including investigating the discrepancies and assessing the potential accounting impact.
• Implemented measures to ensure continued compliance with the Pawnbroking Management Measures, including detailed data entry for loan applications, review by the risk management team, and regular updates on official interest rates.
• Implemented measures to mitigate cybersecurity risks, including staying informed about emerging threats and implementing measures to reduce risks.
• Closely monitored property development projects to ensure progress and compliance with agreements.
• Adjusted business strategies to address competition in the financial services platform market.

Supply Chain Management

Responsible Procurement

• Selection of reliable suppliers based on reputation and track record.

Climate-Related Risks & Opportunities

Awards & Recognition

• 2017 Financial Technology Most Competitive Enterprise Award (China Business News)
• Annual Leap Enterprise Innovation Award (China Financing Magazine)
• Shenzhen Internet Finance Public Welfare Alliance Founding Member Unit
• Huilicai platform awarded China Internet Finance Industry White List
• Best Fintech Enterprise, Best Internet Finance Service Institution, and Excellent Vice Chairman Unit (Shenzhen Internet Finance Association)

Environmental Metrics

Social Achievements

• Improved training system with new programs and methodologies (classroom training, interactive learning, experiential sharing).

Governance Achievements

• Strengthened internal control and established an internal audit department.

Climate Goals & Targets

Environmental Challenges

• Decreased revenue from financial consultation services and platform services.
• Gloomy revenue performance impacting profit.
• Tightening credit environment and rising land costs in the real estate market.
• Intensified competition in the real estate industry.

Mitigation Strategies

• Adoption of a 'light asset' development model to alleviate funding pressures and reduce development costs.
• Focus on building fin-tech platforms for the real estate market and value enhancement in credit financing for property leasing.
• Expansion of finance leasing segment with new products and services.
• Positioning as a platform for the stock house market.
• Strengthening internal control and optimizing cost management, cash flow management, and capital utilization.
• Launching an attractive incentive program to enhance employee cohesion.
• Implementing the 'Leaders for the Future Programme' to enhance the talent team.
• Considering real estate asset securitization and construction equipment rental for long-term sustainable development.
• Exploring expansion through mergers and acquisitions.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Customer Service Management
• Customers Privacy Protection
• Green House Gas (GHG) Emissions
• Energy and Resources Consumption
• Employment Compliance
• Remuneration
• Employees Turnover Minimization

Environmental Achievements

• Reduced GHG emissions by approximately 0.54% compared to 2022 (from 22.53 tonnes to 22.41 tonnes)
• Established an "Energy Conservation Management Policy" and implemented energy conservation measures (e.g., energy-efficient appliances, maximizing natural light, hibernation mode for computers).

Social Achievements

• Implemented measures to reduce employee turnover, including strengthening recruitment controls and staff training.
• Provided competitive remuneration and benefits packages, including social insurance and supplementary benefits (e.g., festive occasion benefits, medical care benefits, incentive bonuses).

Governance Achievements

• Established "Anti-Fraud Management Policy", "Anti-Money Laundering Internal Control Policy", and "Whistleblowing Policy".

Climate Goals & Targets

Environmental Challenges

• Employee turnover rate of 21%.

Mitigation Strategies

• Strengthening recruitment controls and staff training systems; focusing on employee work pressure; expanding development prospects to provide a competitive career platform.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Comprehensive "Purchasing Policy" for selecting and evaluating suppliers based on reputation and performance records.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GEM Listing Rules Appendix 20 (ESG Guide)

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed