Climate Change Data

Raily Aesthetic Medicine International Holdings Limited

Climate Impact & Sustainability Data (2022, 2023)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:1074 tonnes of carbon dioxide equivalent
Scope 1 Emissions:23 tonnes of carbon dioxide equivalent
Scope 2 Emissions:1040 tonnes of carbon dioxide equivalent
Scope 3 Emissions:11 tonnes of carbon dioxide equivalent
Renewable Energy Share:Not disclosed
Total Energy Consumption:1574 MWh
Water Consumption:10047 cubic meters
Waste Generated:81 tonnes
Carbon Intensity:6.53 tonnes of carbon dioxide equivalent/million RMB revenue

ESG Focus Areas

  • Waste Management
  • Energy Consumption
  • Greenhouse Gas Emission
  • Occupational Health and Safety
  • Training and Education
  • Operational Compliance
  • Quality Management
  • Customer Health and Safety
  • Customer Service Management
  • Information Security
  • Customer Privacy Protection
  • Responsible Sales and Marketing

Environmental Achievements

  • Not disclosed

Social Achievements

  • Not disclosed

Governance Achievements

  • Not disclosed

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Reduce electricity and water consumption by 6% by 2025 (compared to 2021).
Short-term Goals:
  • Reduce emissions of air pollutants, wastewater and waste by 5% by 2025 (compared to 2021).

Environmental Challenges

  • COVID-19 pandemic impacting normal operation and customer flow.
  • Non-fulfillment of profit guarantee for Jiumei Xinhe.
  • Increased investment in Suzhou Yonglan R&D with no immediate return.
  • Impairment of goodwill of Hangzhou Bellafill due to reduced customer flow.
Mitigation Strategies
  • Expansion of flagship stores and introduction of advanced technologies.
  • Promoting new concept brands in the aesthetic medical industry.
  • Continuous application of a digital management model.
  • Expansion of the market share of the facial implant brand.
  • Establishment of an R&D and manufacturing platform for advanced aesthetic medical equipment products.
  • Vigorous development of sales channels on e-Mall.

Supply Chain Management

Supplier Audits: 38 suppliers; all required to comply with the Group’s supplier management system.

Responsible Procurement
  • Product quality, product supply, pricing, reputation, service quality and delivery time considered; preference for products with energy-efficient labels, higher recycling efficiency, less packaging, longer expiry dates; preference for suppliers with ISO50001, ISO14001, ISO26000 certifications.

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Not disclosed

Reporting Standards

Frameworks Used: Appendix 27 to 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

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:1350 tCO2e/year
Scope 1 Emissions:19 tCO2e/year
Scope 2 Emissions:1127 tCO2e/year
Scope 3 Emissions:14 tCO2e/year
Total Energy Consumption:1682 MWh/year
Water Consumption:9736 m3/year
Waste Generated:73 tonnes/year (non-hazardous), 7 tonnes/year (hazardous)
Carbon Intensity:7.13 tonnes of CO2e/million RMB revenue

ESG Focus Areas

  • Environmental Protection
  • Employee Management
  • Operating Practices
  • Community Investment
  • Anti-corruption

Environmental Achievements

  • Reduced vehicle air pollutant emissions (Nitrogen oxides, Sulfur oxides, Particulate matter) compared to 2022.
  • Reduced hazardous waste (7 tonnes in 2023 vs 13 tonnes in 2022).
  • Reduced greenhouse gas emissions (1350 tonnes of CO2e in 2023 vs 1074 tonnes in 2022).

Social Achievements

  • Increased number of active aesthetic medical clients from approximately 49,900 in 2022 to approximately 55,900 in 2023 (12% increase).
  • Improved average consumption per client to approximately RMB 3,100 (3.3% increase from 2022).
  • Employed three disabled individuals.

Governance Achievements

  • Established clear ESG duties and responsibilities within the Board of Directors.
  • Commissioned a third-party ESG professional consultant to assist in stakeholder communication and materiality assessment.
  • Formulated an Anti-corruption and Other Fraud Policy.

Climate Goals & Targets

Medium-term Goals:
  • Reduce electricity and water consumption by 2% by 2026.
Short-term Goals:
  • Reduce emissions of air pollutants, wastewater and waste by 3% by 2026.

Environmental Challenges

  • Business affected by the COVID-19 pandemic in the first month of 2023.
  • Intensified industry competition.
  • Downward trend in Jiumei Xinhe’s performance.
  • Delayed product launch cycle for Biotrisse.
  • Lack of medical liability insurance.
Mitigation Strategies
  • Increased investment in research and development of new medical equipment products.
  • Increased marketing and promotion in non-surgical treatments.
  • Expansion of RAILY urban flagship institutions.
  • Application of digital management model.
  • Establishment of a new medical technology exchange platform.
  • Increased marketing efforts and enhanced diversity of online marketing.
  • Expansion of market share of aesthetic medical equipment products.
  • Establishment of an R&D and manufacturing platform for advanced aesthetic medical equipment products.

Supply Chain Management

Supplier Audits: 75 suppliers (88% from China, 12% from rest of the world)

Responsible Procurement
  • Procurement Management Policy; green procurement; priority to suppliers with ISO 50001, ISO 14001, and low-carbon product certifications; priority to suppliers with ISO 26000.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Appendix C2 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited