Climate Change Data

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Increased investment in R&D and technology talents; streamlined its structure and staff instead of making massive layoff; strengthened production plan management, skill enhancement training for staff, quality management, financial, assets, procurement and material management; improved human resource management system, and strengthened human resource development; improved living facilities for the staff and improving their living quality both in the physical and spiritual aspects.

Governance Achievements

• Established a remuneration committee and an audit committee; adopted the Model Code for Securities Transactions by Directors of Listed Issuers; maintained effective internal control systems; reviewed the effectiveness of the systems of internal control in respect of the financial, operational, compliance controls and risk management function of the Group.

Climate Goals & Targets

Environmental Challenges

• Global money supply tightening in 2011; expected market recovery in 2011 but a decline in the second half; fluctuation caused by cyclical decline in any particular industry.

Mitigation Strategies

• Pursue simultaneous development in various industries; continuous investment in talents to build up capability to support future R&D in high-end products; seek a more balanced development across its product portfolio (industrial automated equipment, logistic and distribution equipment, equipment for entire line of LED production, automated testing equipment, SMT production line and lead-free wave soldering equipment); accelerating structural adjustment and realizing sustainable growth; increasing investment in precision production equipment for enhanced capacity; seeking closer cooperation with the government and universities; strengthening human resource development investment and achieve unity through enterprise culture; lowering operating costs and strengthening risk control.

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

• China Achievement Award from the SMT Association

Environmental Metrics

ESG Focus Areas

• Environment
• Employees
• Operations

Environmental Achievements

• Established comprehensive regulations on vehicle management to minimize environmental impact.
• Established detailed regulations on waste recycling and set up special garbage stations.
• Established regulations on electricity management to reduce energy consumption.

Social Achievements

• Provided various rest days, statutory holidays, and paid annual leave to employees.
• Conducted 50 hours of safety training for approximately 500 employees.
• Organized over 500 hours of internal and external training for over 2,900 employees.

Governance Achievements

• Established an internal audit department and risk management committee to ensure compliance with anti-corruption requirements.
• Became a member unit of the Hong Kong Chinese Enterprises Association.

Climate Goals & Targets

Environmental Challenges

• Poor economic and market environment led to a decline in sales of SMT and related products.
• Historical burdens and outmoded production capacities.
• Decentralized state of traditional businesses.

Mitigation Strategies

• Integrated traditional brand production equipment business, OEM business, and automation and logistics business.
• Increased investment in research and development of high-end products.
• Focused on trade receivable management and inventory control.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Complete mechanism on supplier selection, evaluation, and re-evaluation.
• Suppliers sign environmental guarantee agreements.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

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

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

• Environmental Protection
• Employee Well-being
• Operational Excellence

Environmental Achievements

• Reduced NOx emissions by approximately 93% compared to the previous nine-month period.
• Reduced direct greenhouse gas emissions by approximately 69% compared to the previous nine-month period.
• Reduced harmless waste by approximately 26% compared to the previous nine-month period.
• Reduced electricity consumption by approximately 34% compared to the previous nine-month period.
• Reduced water consumption by over 73% compared to the previous nine-month period.

Social Achievements

• Implemented a complete system and regulations regarding the employment of staff, ensuring compliance with labor and employment laws.
• Provided various benefits to employees, including festive holidays, birthdays, occupational health checks, and subsidies.
• Adopted family-friendly employment practices, providing additional protective measures for pregnant and breastfeeding female staff.
• Conducted various cultural events for employees, including sports associations and interest classes.
• Conducted over 30 hours of safety training for nearly 300 employees, including first-aid training.
• Improved dining and water-use conditions for employees, including canteen renovation and water dispenser upgrades.
• Actively improved the dining and water-use conditions for the employees, including the comprehensive renovation of the canteen and the upgrade of its hardware and ancillary facilities.

Governance Achievements

• Established an internal audit department and risk management committee to ensure compliance with anti-corruption requirements.
• Implemented a new credit sales policy to accelerate capital turnover and reduce trade receivables.
• Maintained compliance with the Code for the year ended 31 December 2017, except for minor deviations related to director attendance at general meetings.

Climate Goals & Targets

Environmental Challenges

• Maintaining compliance with environmental regulations and reducing environmental impact.
• Managing operational risks across different business segments.
• Managing financial risks, including credit, liquidity, and foreign exchange risks.
• Ensuring employee safety and well-being.
• Maintaining good relationships with key stakeholders.

Mitigation Strategies

• Established comprehensive regulations on vehicle management, waste recycling, and energy and water conservation.
• Implemented risk management policies and procedures, including a whistleblower program.
• Closely monitored credit exposure, implemented collection procedures, and reviewed the recoverability of trade debts.
• Established a safety management system, comprehensive contingency plan, and safety training programs.
• Maintained effective communication and good relationships with employees, customers, suppliers, and other stakeholders.

Supply Chain Management

Supplier Audits: Regular evaluations on existing suppliers

Responsible Procurement

• Supplier review includes capability to deliver products and services, technical standards, quality assurance, and environmental guarantee agreements.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

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

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Energy saving lead-free vertical reflow oven

Awards & Recognition

• Award for Innovative Achievements in SMT in Mainland China
• Gold Award under the Fourth Session of the “Red Sail Award” for Industrial Design

Environmental Metrics

ESG Focus Areas

• Greenhouse gas emission
• Waste management
• Energy consumption
• Water consumption
• Packing material consumption
• Impact of extreme weather on production
• Recruitment, promotion and dismissal
• Remuneration and benefits
• Equal opportunity
• Workplace safety
• On-the-job training
• Prevention of child labour and forced labour
• Fair and clear procurement rules
• Stable business relationship
• Intellectual property
• After-sales services
• Privacy protection
• Anti-corruption and anti-bribery policies
• Community Investment

Environmental Achievements

• Reduced nitrogen oxides (NOx) emissions by 1.59% year-on-year.
• Reduced direct greenhouse gas emissions by about 14% compared to last year.
• Reduced direct CO2 emissions by 15.52% compared to last year.
• Reduced non-hazardous domestic waste by 16.67% year-on-year.

Social Achievements

• Maintained a 0 work-related fatality and injury rate for the past three years.
• Achieved 100% employee training rate.
• No child labour or forced labour employed.

Governance Achievements

• Established an ESG task force for effective governance over ESG issues.
• Complied with relevant laws and regulations regarding environmental protection and labour standards.
• No corruption lawsuits filed against the Company or its employees.

Climate Goals & Targets

Environmental Challenges

• Global economic uncertainty and volatile industry trends.
• Impact of the COVID-19 pandemic on operations and supply chains.
• Potential impact of extreme weather events on production.

Mitigation Strategies

• Prudent management policy and seizing opportunities.
• Strict adherence to government epidemic prevention policies.
• Formulated countermeasures against extreme weather risks.

Supply Chain Management

Responsible Procurement

• Establishing specific and target-oriented procurement selection standards; considering supplier reputation, product quality, price, and environmental and social risks; using environmentally preferable products and services; conducting procurement fairly and openly.

Climate-Related Risks & Opportunities

Physical Risks

• Typhoons
• High temperatures

Reporting Standards

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

Environmental Metrics

ESG Focus Areas

• Greenhouse gas emission
• Waste management
• Energy consumption
• Water consumption
• Packing material consumption
• Impact of extreme weather on production
• Recruitment, promotion and dismissal
• Remuneration and benefits
• Equal opportunity
• Workplace safety
• Safety supporting facilities and management system for employees’ living area
• On-the-job training and diversified training development for employees
• Prevention of child labour and forced labour
• Fair and clear procurement rules
• Stable business relationship
• Intellectual property
• After-sales services
• Privacy protection
• Anti-corruption and anti-bribery policies and reporting mechanism
• Anti-corruption training
• Community participation
• Charity activities

Environmental Achievements

• Reduced nitrogen oxides (NOx) emissions by 12.19% year-on-year.
• Reduced oxysulfides (SOx) emissions by 27.36% year-on-year.
• Reduced particulate matters (PM) emissions by 15.17% year-on-year.
• Reduced direct greenhouse gas emissions by 9.26% year-on-year.
• Reduced non-hazardous domestic waste by 13.33% year-on-year.
• Eliminated the use of PE plastic bags for packaging for the third consecutive year.

Social Achievements

• Maintained a 100% employee training rate.
• Increased total employee training hours by approximately 30% year-on-year.
• No work-related fatalities or injuries recorded in the past three years.
• Implemented policies to prevent child labor and forced labor.
• Provided annual anti-corruption training to directors and employees.

Governance Achievements

• Established an ESG task force for effective governance over ESG issues.
• Fully complied with all code provisions of the Corporate Governance Code.

Climate Goals & Targets

Environmental Challenges

• Weak global demand in the consumer market due to geopolitical conflicts, trade protectionism, inflation, and climate change.
• Sluggish development of the semiconductor industry and tightened chipmaking exports to China.
• Impacts of COVID-19 on supply chain and logistics.
• Downturn in the smartphone market.
• Uncertainties in the international situation and risks of international trade and geopolitics.

Mitigation Strategies

• Adhered to a prudent business strategy and promptly adjusted strategies.
• Maintained flexible policies and responded to market changes.
• Speed up project development progress, strengthened cost control, expanded market, and promoted digital transformation.
• Increased technological innovation investment and developed high-quality products.
• Actively expanded business into new areas such as grid energy storage and bird detection radar.
• Implemented a stable development policy to stabilize the operation of SMT and semiconductor equipment manufacturing business.

Supply Chain Management

Supplier Audits: Regular assessments on existing suppliers.

Responsible Procurement

• Establishing specific and target-oriented procurement selection standards.
• Considering environmental and social risks.
• Using environmentally preferable products and services.
• Requiring suppliers to sign environmental guarantee agreements.

Climate-Related Risks & Opportunities

Physical Risks

• Typhoons
• High temperatures

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: 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

Environmental Metrics

ESG Focus Areas

• Greenhouse gas emission
• Waste management
• Energy consumption
• Water consumption
• Packing material consumption
• Impact of operating activities on the environment
• Impact of extreme weather on production and operating activities
• Recruitment, promotion and dismissal
• Remuneration and benefits
• Equal opportunity
• Workplace safety supporting facilities and management system
• Safety supporting facilities and management system for employees’ living area
• Development and Training
• Labour Standards
• Supply Chain
• Product Responsibility
• Anti-corruption
• Community Investment

Environmental Achievements

• Reduced nitrogen oxides (NOX) emissions by 8.74% year-on-year.
• Reduced particulate matters (PM) emissions by 4.65% year-on-year.
• Successfully built Herong Energy Storage Power Station with a total installed capacity of 500 MW/1,000 MWh.

Social Achievements

• Maintained a 100% employee training rate.
• No work-related fatalities or injuries recorded in the past three years.
• Provided various welfare benefits to employees, including festival benefits, birthday benefits, and health checkups.

Governance Achievements

• Established an ESG task force for effective governance over ESG issues.
• Complied with all code provisions of the Corporate Governance Code.
• Provided annual anti-corruption training to directors and employees.

Climate Goals & Targets

Environmental Challenges

• Intensified market competition leading to a slight decrease in gross profit of the main business segment.
• High construction and operating costs in the energy business, along with delays in settlement mechanisms.
• Increased administrative expenses due to business segment adjustments.
• Global economic slowdown impacting SMT and semiconductor equipment manufacturing related business.

Mitigation Strategies

• Adhered to the principle of increasing revenue and reducing expenditure, operating prudently.
• Prioritized improving business resilience and optimizing business structure.
• Successfully connected the first phase of Herong Energy Storage Power Station to the grid and put it into commercial operation.
• Planned to adopt intelligent internet technology to improve load management and demand response capabilities of the power station.
• Implemented a complete management system to ensure the efficient and stable operation of the power station.
• Actively participated in large exhibitions at home and abroad to introduce products to customers.

Supply Chain Management

Responsible Procurement

• Establishing specific and target-oriented procurement selection standards.
• Using environmentally preferable products and services.
• Conducting procurement fairly and openly.

Climate-Related Risks & Opportunities

Physical Risks

• Typhoon
• High temperature

Reporting Standards

Frameworks Used: ESG Guide

Awards & Recognition

• Shenzhen “High-quality Development of Technologically Advanced Small and Medium-sized Enterprises” certification
• Shenzhen Advanced Manufacturing Industry “Industry Pioneer Award” of the “Hong Fan Award”