Climate Change Data

Environmental Metrics

ESG Focus Areas

• Emissions
• Use of Resources
• The Environment and Natural Resources
• Employment and Labour Practices
• Health and Safety
• Development and Training
• Labour Standards
• Supply Chain Management
• Product Responsibility
• Data privacy
• Anti-corruption
• Community Investment

Environmental Achievements

• Replaced many traditional light bulbs with LED ones
• Increased the use of internet system gradually to create a paperless working environment
• Compulsory double-sided printing and copying
• Used only used papers as draft paper
• Collection boxes for single-side used papers for reuse and other scrap papers for recycling
• All packaging bags are made of Forest Stewardship Council (“FSC”) accredited papers

Social Achievements

• Developed a comprehensive training program consisting of product knowledge, service and selling skills, complaints handling techniques and managerial competences
• Offers induction training courses for communicating corporate values, service standards and code of conducts to new joiners
• Leadership programme for management personnel
• Engaged external service providers to perform independent evaluation on the performance of frontline staff
• Joined the “Hong Kong Q-Mark Scheme” of the Hong Kong Q-Mark Council

Governance Achievements

• Incorporated a strict Code of Conduct in its staff manual for all employees with provisions prohibiting solicitation and acceptance of advantages
• Regular declaration of interest are compulsory for certain staff
• Employees have been given induction briefing organized by the Company or seminars on anti-corruption

Climate Goals & Targets

Environmental Challenges

• Slowdown in luxury goods spending in mainland China and Hong Kong due to economic uncertainty
• High rental costs

Mitigation Strategies

• Successfully lowered certain amount of rental cost through negotiation
• Closed down 1 store in Hong Kong and sold Macau business
• Implemented policies on inventory management
• Actively negotiating better rental rate for lease renewal
• Regular internal assessment on the performance of all retail stores and closedown of high-rent yet non-performing stores

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Only imports watches from manufacturers who use environmentally friendly and safe raw materials for production

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

• “Service Industry Leader – Silver Award” by Hong Kong Retail Management Association

Environmental Metrics

ESG Focus Areas

• Emissions
• Use of Resources
• The Environment and Natural Resources
• Employment and Labour Practices
• Health and Safety
• Development and Training
• Labour Standards
• Supply Chain Management
• Product Responsibility
• Data privacy
• Anti-corruption and anti-money laundering
• Community Investment

Environmental Achievements

• Reduced paper consumption to 29.61 tonnes through paperless working environment and double-sided printing.
• Replaced many traditional light bulbs with energy-efficient LED ones.
• Signed up to the “Charter on External Lighting”, switching off advertising signs between 11 p.m. and 7 a.m.

Social Achievements

• Established employment policies and guidelines based on local employment laws.
• Implemented various administrative measures to ensure a safe and healthy work environment.
• Developed a comprehensive training program for staff.
• Joined the “Hong Kong Q-Mark Scheme” to attest the quality of products and services.
• Implemented strict code of conduct and regular declaration of interest to prevent corruption.
• Actively donated to various charity organizations and sponsored wildlife TV programs.

Governance Achievements

• Complied with the code provisions prescribed in the CG Code except for deviation from Code Provision A.4.1.
• Established a risk management framework including the Board of Directors, the Audit Committee and the Risk Management Taskforce.
• Maintained close communications with investors, analysts, fund managers and the media.

Climate Goals & Targets

Environmental Challenges

• Group’s turnover decreased by 8.0% to HK$2,892 million due to decreased sales in Hong Kong and Macau.
• High rental costs.

Mitigation Strategies

• Successfully negotiated better rental rates and more flexible leasing terms.
• Closed down high-rent yet non-performing stores.
• Implemented policies on inventory management to ensure stable cash flow.
• Adjusted and optimized its brand portfolio.

Supply Chain Management

Responsible Procurement

• Consideration of reputation, environmental and social performances of watch manufacturers before establishing business relationships.

Climate-Related Risks & Opportunities

Awards & Recognition

• Service Industry Leader – Silver Award

Environmental Metrics

ESG Focus Areas

• Product Responsibility
• Supply Chain Management
• Anti-corruption
• Employment
• Environment
• Community Investment

Environmental Achievements

• Reduced non-hazardous waste (mainly attributed to lower paper usage and effective recycling initiatives)
• Replaced many traditional light bulbs with more energy-efficient LED ones
• Signed up to the “Charter on External Lighting”, switching off advertising signs between 11 p.m. and 7 a.m.

Social Achievements

• Awarded the “Service Industry Leader – Silver Award” by the Hong Kong Retail Management Association
• Developed comprehensive training programs for staff (product knowledge, service skills, complaint handling, managerial competencies)
• Implemented a “Mystery Shoppers Programme” to monitor service performance

Governance Achievements

• Complied with the code provisions prescribed in the CG Code set out in Appendix 14 of the Listing Rules (except for deviation from Code Provision A.4.1)
• All Directors complied with the required standard set out in the Code for securities transactions
• Regular seminars conducted for executives on connected transactions to ensure compliance with Listing Rules

Climate Goals & Targets

Environmental Challenges

• 15.7% decrease in turnover due to fewer watch units sold, impacted by changes in consumer behavior (more prudent spending due to China-US trade dispute and currency fluctuations)
• Ongoing China-US trade dispute brought uncertainties to the global economy
• Fluctuations in the exchange rate of Chinese Yuan and stock market corrections impeded consumer sentiment

Mitigation Strategies

• Stringent cost control, including a 4.1% decrease in aggregate rental cost
• Relocated flagship store to a premium location
• Regular internal assessment on retail store performance and closure of non-performing stores
• Inventory management policies to ensure stable cash flow and healthy financial position
• Efforts in adjusting and optimizing brand portfolio to stabilize sales performance and keep abreast of market trends

Supply Chain Management

Responsible Procurement

• Consideration of reputation, environmental, and social performance of watch manufacturers before establishing business relationships

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Appendix 27 — Environmental, Social and Governance Reporting Guide of the Main Board Listing Rules

Awards & Recognition

• Service Industry Leader – Silver Award

Environmental Metrics

ESG Focus Areas

• Compliance
• Air emissions and greenhouse gas emissions
• Non-hazardous waste
• Energy consumption
• Water consumption
• Use of packaging materials
• Recruitment, promotion and dismissal
• Employee compensation and benefits
• Employee working hours and rest periods
• Equal opportunity
• Workplace health and safety
• Employee training and development
• Anti-child and anti-forced labour
• Supply chain relationship management
• Product responsibility and service quality
• Advertising and labelling
• Data privacy and protection
• Anti-corruption and anti-money laundering
• Community Investment

Environmental Achievements

• Reduced overall consumption of energy and use of other resources (including packaging materials) in FY2020 compared to FY2019 due to lower sales revenue and flexible work arrangements.
• Replaced many traditional light bulbs with more energy-efficient LED ones.
• Reduced non-hazardous waste compared to FY2019 due to lower paper usage and effective paper recycling initiatives.
• All packaging bags are made of FSC-accredited paper.

Social Achievements

• Awarded the “Service Industry Leader – Silver Award” by the Hong Kong Retail Management Association.
• Allocated significant resources to provide training programs to employees.
• Developed a series of training programs for senior executives.

Governance Achievements

• Established an ESG taskforce.
• Incorporated a strict code of conduct in its staff manual prohibiting solicitation and acceptance of advantages.
• Regular declaration of interest is compulsory for certain staff.

Climate Goals & Targets

Environmental Challenges

• Global macroeconomic uncertainty, social unrest in Hong Kong, and the COVID-19 outbreak adversely affected the business.
• Significant decrease in the number of tourists visiting Hong Kong.
• Impairment losses made in respect of right-of-use assets and property, plant and equipment.
• Increase in allowance for slow-moving watches.

Mitigation Strategies

• Implemented stringent cost control measures, particularly on rental costs.
• Successfully negotiated lower rental rates and more flexible leasing terms.
• Regular assessment on the performance of all retail stores and closure of non-performing ones.
• Adopted policies on inventory management to ensure stable cash flow and healthy financial position.
• Stepped up efforts in adjusting and optimising the brand portfolio.

Supply Chain Management

Responsible Procurement

• Only imports watches from manufacturers who use environmentally friendly and safe raw materials.

Climate-Related Risks & Opportunities

Awards & Recognition

• Service Industry Leader – Silver Award

Environmental Metrics

ESG Focus Areas

• Compliance
• Air emissions and greenhouse gas emissions
• Non-hazardous waste
• Energy consumption
• Water consumption
• Use of packaging materials
• Environmental Impacts from Investments
• Recruitment, promotion and dismissal
• Employee compensation and benefits
• Employee working hours and rest periods
• Equal opportunity
• Workplace health and safety
• Employee training and development
• Anti-child and anti-forced labour
• Supply chain relationship management
• Product responsibility and service quality
• Advertising and labelling
• Data privacy and protection
• Anti-corruption and anti-money laundering
• Community Investment
• Climate Resilience

Environmental Achievements

• Replaced many traditional light bulbs with more energy-efficient LED ones.
• Reduced non-hazardous waste mainly due to lower paper usage and effective recycling initiatives.
• Established a Group-wide five-year reduction target for Scope 1, 2 & 3 emissions by approximately 13%.

Social Achievements

• Allocated significant resources to provide training programs to employees to improve customer service.
• Developed a series of training programs for senior executives.
• Adopted a share option scheme to attract and retain quality personnel.
• Donated a lump sum of HKD$7,500 equivalent to various charitable organisations.
• Sponsored the Hong Kong Children In Need Foundation.

Governance Achievements

• Complied with the code provisions prescribed in the Corporate Governance Code.
• Established an ESG taskforce to manage ESG-related risks and report to the Board.
• Adopted a diversity policy to achieve diversity of board members.

Climate Goals & Targets

Environmental Challenges

• Global market uncertainties brought by the pandemic.
• Hong Kong tourism and retail sector hit hard in 2020 due to travel restrictions and social distancing measures.

Mitigation Strategies

• Exercising stringent control on rental cost.
• Regular internal assessment on the performance of all retail stores and closure of high-rent yet non-performing stores.
• Policies on inventory management to ensure stable cash flow and healthy financial position.
• Adjusting and optimising its brand portfolio.
• Implementing green technologies and close monitoring on operations to minimise energy consumption.

Supply Chain Management

Responsible Procurement

• Only imports watches from manufacturers who use environmentally friendly and safe raw materials for production.
• Considers the reputation, as well as the environmental and social performance of the watch manufacturers before establishing business relationship with them.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Appendix 27 — Environmental, Social and Governance Reporting Guide of the Main Board Listing Rules

Certifications: Hong Kong Q-Mark Scheme

Awards & Recognition

• Service Industry Leader – Silver Award

Environmental Metrics

ESG Focus Areas

• Social

Environmental Achievements

• Reduced electricity intensity by 24.16% compared to FY2021.
• Increased recycled paper usage by 14.21% compared to FY2021.
• Reduced total Scope 1, 2 & 3 emissions by 2.04% compared to FY2021.

Social Achievements

• Launched e-commerce platforms in Mainland China and Hong Kong.
• Offered door-to-door watchband adjustment services in Hong Kong.
• Hong Kong operation awarded “Happy Company 2021” by the Hong Kong Productivity Council.
• Actively donated to various charitable organisations (HKD$216,600).

Governance Achievements

• Established an ESG taskforce.
• Implemented anti-corruption training for employees.

Climate Goals & Targets

Environmental Challenges

• Fluctuating COVID-19 pandemic.
• Unprecedented challenges in the global supply chain.

Mitigation Strategies

• Strengthened cost and inventory management.
• Optimized product portfolio and marketing strategies.

Supply Chain Management

Responsible Procurement

• Require material suppliers to fill in declaration regarding their operations in environmental and social aspects.
• Actively procure green products (FSC-accredited paper for packaging).

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events impacting retail shop operations.

Awards & Recognition

• Happy Company 2021

Environmental Metrics

ESG Focus Areas

• Social
• Environmental

Environmental Achievements

• Reduced electricity intensity by 29.17% compared to FY2021.
• All traditional light bulbs replaced with LED ones in Mainland China shop renovation in early 2021.

Social Achievements

• Joined the “Hong Kong Q-Mark Scheme” to attest the quality of its products and services.
• Established a specially designed VIP lounge at flagship stores.
• Implemented different tiers of membership, offering different privileges.

Governance Achievements

• Established an internal whistleblowing reporting mechanism.
• Directors regularly receive reading materials about anti-corruption.

Climate Goals & Targets

Environmental Challenges

• Lingering impact of the COVID-19 pandemic, including lockdowns in Mainland China and consumer conservatism in Hong Kong.
• Global economic uncertainties such as geopolitical tension, inflation, and rising interest rates.
• Slower growth rate in Mainland China and Hong Kong markets.

Mitigation Strategies

• Maintained stable business operations and focused on efficiency enhancement and cost control.
• Leveraged strong brand equity and distribution network.
• Negotiated lower rental rates for some stores.
• Employed strict inventory policies to ensure fast cash turnaround.
• Continued to maintain a prudent business approach and monitor market developments.
• Expanded Hong Kong and Mainland China network through boutique stores.

Supply Chain Management

Responsible Procurement

• Requires material suppliers to fill in declaration regarding their operations in environmental and social aspects.
• Actively procures green products; packaging bags made of FSC-accredited paper.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events impacting retail shop operations.