Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Strictly complied with all applicable environmental laws and regulations and was not subject to any environmental regulatory sanction for the year ended 31 March 2017.
• Implemented green office practices such as re-deployment of office furniture, use of recycled paper, double-sided printing, and reduced energy consumption by switching off idle equipment.

Social Achievements

• Strictly complied with all applicable labour laws/regulations and provides equal opportunity for applicants and employees.
• Provided employees with benefits including medical benefits and retirement scheme.
• Did not experience any industrial accident for the year ended 31 March 2017.
• Encouraged employees to participate in relevant courses to improve their professional knowledge and skills.

Governance Achievements

• Complied with all the provisions of the Corporate Governance Code.
• Established a Board Diversity Policy.
• Established the Nomination Committee, the Remuneration Committee, and the Audit Committee.

Climate Goals & Targets

Environmental Challenges

• The market remained challenging due to the forecasted decline in coal consumption and oversupply from domestic and foreign producers.
• Risks and uncertainties including market risk, credit risk, and liquidity risk.

Mitigation Strategies

• Continue to work closely with top coal mines in Indonesia to secure supply of quality thermal coal at a competitive price.
• Explore new customers by allocating marketable types of coal according to differentiated requirements of customers.
• Implement a stricter and more regulated internal control and risk management procedures.
• Regularly monitor its liquidity requirements to ensure that it maintains sufficient reserves of cash and adequate committed lines of funding.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Evaluates supplier candidates in terms of service performance, product quality, and environmental certifications.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Corporate Governance Code

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
• Social
• Governance

Environmental Achievements

• Strictly complied with all applicable environmental laws and regulations and was not subject to any environmental regulatory sanction.
• Reduced total electricity consumption to approximately 79,300 kWh and total water consumption to approximately 300m3.
• Total carbon emissions were approximately 50 tonnes.

Social Achievements

• Strictly complied with all applicable labour laws/regulations and provides equal opportunity for applicants and employees.
• All employees attended training on various topics, including occupational safety and health (100% coverage).
• No industrial accident or injury occurred.

Governance Achievements

• Complied with all the provisions set forth in Appendix 27 to the Listing Rules.
• Established a three-tier risk management approach to identify, assess, mitigate and handle risks.
• Implemented stricter internal control and risk management procedures.

Climate Goals & Targets

Environmental Challenges

• Negative impacts from global economic factors, including ongoing trade disputes between the US and China and slowing down of China’s economic growth.
• Uncertain business environment due to the risk of the US-China trade war.

Mitigation Strategies

• Implemented clear strategies to balance short-term results and long-term goals.
• Improved internal cost control to decrease the Group’s salaries cost and office rental expense.
• Actively working to mitigate any potential impacts over the long term by closely monitoring the impact of macro issues and trade disputes and cautiously planning strategies.

Supply Chain Management

Supplier Audits: Regular assessments

Responsible Procurement

• Strictly selecting suppliers and prudently considering the certifications in relation to product quality and environmental protection.

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

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced total carbon emissions to approximately 45 tonnes in 2020.
• Reduced electricity consumption to approximately 70,600 kWh and water consumption to approximately 267 m3 in 2020.
• Implemented green office practices such as re-deployment of office furniture, use of recycled paper, double-sided printing, and switching off idle appliances.

Social Achievements

• Maintained a workforce of 9 full-time employees in Hong Kong.
• Provided employees with training on various topics, including occupational safety and health, with 100% coverage.
• Did not experience any industrial accidents or injuries.
• Employees made donations to various charitable organizations in Hong Kong.

Governance Achievements

• Complied with all applicable anti-corruption laws and regulations.
• Did not receive any reports regarding bribery, corruption, extortion, fraud, or money laundering.
• Implemented a stricter and more regulated internal control and risk management procedure.

Climate Goals & Targets

Environmental Challenges

• Negative impacts from unstable economic environment and unfavorable trading factors including trade wars, the slowdown of China’s economy, China’s coal import restrictions and decrease in market prices for coal from Australia and Indonesia.
• Global economic uncertainties and unfavorable trading factors which may adversely affect our business and overall short-term performance in the foreseeable future.
• The continuity of trade war between China and the United States, the global outbreak of coronavirus disease, and the slowdown of China’s economy that may adversely affect its business and overall short-term performance.

Mitigation Strategies

• Cautious management of business risk; prepared to respond to changes in the business environment.
• Strategically developing the Group’s business to mitigate impacts.
• Improving responsiveness to developments in the commodities market, establishing operations outside Hong Kong, and diversifying commodities trading business.
• Closely monitoring the impact of macro issues and trade disputes on performance, and developing strategies to manage these factors.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Strictly selecting suppliers and prudently considering the certifications in relation to product quality and environmental protection. Regularly assessing suppliers to establish a stable supply chain.

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

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Employee welfare
• Supply chain management
• Anti-corruption
• Community involvement

Environmental Achievements

• Strictly complied with all applicable environmental laws and regulations; no environmental regulatory sanctions.
• Reduced electricity consumption from 70,600 kWh to 60,500 kWh; reduced water consumption from 267 m3 to 190 m3; reduced non-hazardous materials consumption from 598 kg to 548 kg.
• Implemented green office practices such as re-deployment of office furniture, use of recycled paper, double-sided printing, and switching off idle equipment.

Social Achievements

• Strictly complied with all applicable labor laws/regulations; no child labor or forced labor used.
• Provided equal opportunities for applicants and employees; no discrimination or harassment complaints.
• 100% employee training coverage on various topics, including occupational safety and health.
• No industrial accidents or injuries for the year ended 31 March 2021 and the past three years.
• Employees made donations to various charitable organizations in Hong Kong.

Governance Achievements

• Complied with all provisions set forth in Appendix 27 to the Listing Rules.
• Established and constantly improved risk management and internal control systems.
• Conducted regular review of the Group’s risk management and internal control systems and its effectiveness.
• Conducted training on anti-corruption to all directors and staff; no reports of bribery, corruption, extortion, fraud, or money laundering.

Climate Goals & Targets

Environmental Challenges

• Global economic uncertainties and unfavorable trading factors may adversely affect business and short-term performance.
• Uncertainties and/or possible escalation of Sino-Australian trade tensions resulting in restrictions on coal imports from Australia.
• China’s management of coal imports in the wake of the impact of the COVID-19 pandemic.

Mitigation Strategies

• Cautious management of business risk; prepared to respond to changes in the business environment.
• Strategic development of the Group’s business to mitigate impacts of global economic uncertainties.
• Careful planning and formulation of strategies to manage unfavorable trading factors.

Supply Chain Management

Supplier Audits: Regular assessment of suppliers; annual review to ensure they meet requirements.

Responsible Procurement

• Strict selection of suppliers; considering certifications related to product quality and environmental protection.

Climate-Related Risks & Opportunities

Physical Risks

• Heavy rainfall and floods affecting coal supply

Transition Risks

• Changes in China's coal import policies

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

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Social responsibility
• Governance

Environmental Achievements

• Strictly complied with all applicable environmental laws and regulations and was not subject to any environmental regulatory sanction.
• Reduced non-hazardous waste generation by 9% (500 kg vs 548 kg)

Social Achievements

• Provided equal opportunities for applicants and employees regardless of their age, race, religion, disability, gender, sexual orientation, marital status, social stratum or political background.
• Provided employees with provident fund, medical insurance, dental insurance, life insurance, business travel insurance and health check-up benefit.
• No industrial accidents or injuries in the past three years, including the Reporting Period.
• 100% of employees attended training on various topics, including occupational safety and health.

Governance Achievements

• Complied with all the provisions set forth in Appendix 27 to the Listing Rules (the “ESG Reporting Guide”) throughout the financial year ended 31 March 2022.
• Established internal code of conduct to set out the standards of behavior for its employees.

Climate Goals & Targets

Environmental Challenges

• Poor market conditions due to the COVID-19 pandemic.
• Global economic uncertainties and unfavorable trading factors.
• China’s management of coal imports in the wake of the impact of the COVID-19 pandemic.
• Uncertainties and/or possible escalation of the Sino-Australian trade tensions resulting in restrictions on coal imports from Australia.
• Frequent extreme weather arisen from climate change may make significant impact on the Group’s daily operations.

Mitigation Strategies

• Adoption of a safe trading strategy, selecting lower gross profit margin coal transactions with less credit risk during the COVID-19 pandemic and under the global economic uncertainties.
• Cautious management of business risk; prepared to respond to changes in the business environment; and aim to strategically develop the Group’s business to mitigate these impacts.
• Carefully plan and formulate strategies to manage these factors with the aim to deliver the best possible results to the Shareholders.
• Monitors compliance with climate-related local government policies; formulates relevant emergency plans for delay in shipment; and establishes safety measures to safeguard its staff in workplace.

Supply Chain Management

Supplier Audits: Annual assessments

Responsible Procurement

• Risk assessment in terms of certifications in relation to product quality, pricing, stability of delivery, reliability, reputation and environmental protection.
• Requiring each supplier to meet the necessary requirements on environmental protection and occupational health and safety.

Climate-Related Risks & Opportunities

Physical Risks

• Heavy rainfall, storm surges, floods and other super typhoons affecting coal quality and employee safety.

Reporting Standards

Frameworks Used: Hong Kong Stock Exchange ESG Reporting Guide

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• 8% reduction in electricity consumption
• Achieved annual target on the reduction of resources consumptions, waste production and greenhouse gas emission

Social Achievements

• All employees attended training on various topics, including occupational safety and health (100% coverage)
• No industrial accident nor injury in each of the past three financial years, including the Reporting Period

Governance Achievements

• Complied with all the provisions set forth in Appendix 27 to the Listing Rules (the “ESG Reporting Guide”) throughout the financial year ended 31 March 2023
• Implemented remedial measures to address key findings of the Internal Control Review report

Climate Goals & Targets

Environmental Challenges

• Poor market conditions due to COVID-19 pandemic
• Suspension of trading of the shares of the Company on the Stock Exchange
• Global economic uncertainties and unfavorable trading factors

Mitigation Strategies

• Conservative positioning in managing the Group’s working capital
• Tight control on its credit and collection policies
• Closely monitoring the impact of the macro issues on its performance, and carefully plan and develop strategies to manage these factors

Supply Chain Management

Supplier Audits: Annual assessment of suppliers

Responsible Procurement

• Compliance with applicable environmental laws and regulations, sustainability, fair-trade

Climate-Related Risks & Opportunities

Physical Risks

• Heavy rainfall, storm surges, floods and other super typhoons

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Achieved annual target on waste reduction; reduced non-hazardous materials by approximately 60 kg/person compared to the previous year.
• Strictly complied with all applicable environmental laws and regulations and was not subject to any environmental regulatory sanctions.

Social Achievements

• No industrial accidents or injuries over the past three years, including the Reporting Period.
• 100% employee training coverage on various topics, including occupational safety and health; increased average training hours to 76 hours (2023: 45 hours).

Governance Achievements

• Complied with all the code provisions in the Corporate Governance Code (the “CG Code”) in Appendix C1 of the Listing Rules except for one deviation (explained in the report).
• Established and implemented procedures for responding to external enquiries about the Group’s affairs.

Climate Goals & Targets

Environmental Challenges

• Increase in cost of sales such as labor costs due to global economic uncertainty.
• Global economic uncertainties and unfavorable trading factors may adversely affect our business and short-term performance.
• Challenges in the future business environment with many uncertainties in the global and local business environment, including economic volatility, war and conflict, demand and supply dynamic or expansion and strengthen of renewable energy sources.

Mitigation Strategies

• Implementing clear strategies to balance short-term results and long-term goals.
• Cautious in managing business risk; prepared to respond to changes in the business environment; strategically developing the Group’s business to mitigate these impacts.
• Closely monitoring the impact of macro issues on its performance, and carefully planning and developing strategies to manage these factors to provide the best possible results to shareholders in the medium to long-term.

Supply Chain Management

Supplier Audits: Annual assessments of suppliers

Responsible Procurement

• Meticulous selection of suppliers; considering inherent environmental and social risks; risk assessments regarding certifications related to product quality, pricing, stability of delivery, reliability, reputation, and environmental protection.

Climate-Related Risks & Opportunities

Physical Risks

• Frequent extreme weather events may significantly impact the Group’s daily operations; shipments from suppliers to customers are affected by climate change and unstable weather conditions; extreme weather conditions may affect the personal safety of employees in the office.