Climate Change Data

Environmental Metrics

ESG Focus Areas

• Product and service quality
• Product safety and health
• Customer communication and satisfaction
• Occupational safety and health
• Employee training and development

Environmental Achievements

• Reduced greenhouse gas emissions from 153,299.6 to 122,378.9 tonnes of CO2e
• Increased use of solar energy from 1,269.9 to 1,370.3 MWh
• Obtained ISO 14001:2015 environmental management system certification
• Garnered the “Advanced Enterprise in Energy Saving and Emission Reduction” certificate

Social Achievements

• Implemented various management workflows and measures incorporating relevant safety standards into the design concept to build a well-established automotive industry management system
• Provided various employee benefits including transportation tickets for weekends, issuing birthday coupons, arranging health checks, and arranging vehicles for employees going home for reunion during Spring Festival
• Arranged more than 200 various trainings for employees, including occupational skills, product quality, production safety, fire safety, and emergency awareness

Governance Achievements

• Established an internal control system headed by the Board to assess and manage risks
• Established an audit committee, remuneration committee, and nomination committee
• Complied with the code provisions on risk management and internal control as set out in the CG Code

Climate Goals & Targets

Environmental Challenges

• Continuously increasing production costs
• Disappointing performance of the subsidiary located in Germany due to sluggish European market and continuing increased cost
• Outbreak of COVID-19 in the first quarter of 2020, which substantially dented China’s economy and suppressed the local demand for auto

Mitigation Strategies

• Rigorously enforced the implementation of cost controls, improved staff quality and strengthened administrative efficiency internally
• Strove to fortify the long-term cooperation with customers, develop new market opportunities, maintain sound business operation capability, consolidate the Group’s resources and improve market competitiveness
• Production bases were temporarily suspended after the Lunar New Year but had all resumed operation by the end of February 2020

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• ISO/TS 16949 quality system

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: “Environmental, Social and Governance Reporting Guidance” under Appendix 27 to the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited

Certifications: ISO 14001:2015, IATF 16949:2016, OHSAS 18001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Developed Low Pressure Injection Moulding (“LPIM”) process; Replace steels with plastics to reduce the use of the engines and cooling systems

Awards & Recognition

• “2018 Annual Outstanding Entrepreneur in Technological Innovation”
• “Individual Champions Nurturing Enterprise”

Environmental Metrics

ESG Focus Areas

• Product and Service Responsibility
• Operation Practices
• Quality of Working Environment
• Environmental Protection and Green Operation
• Contribution to the Community

Environmental Achievements

• ISO 14001:2015 environmental management system certification obtained.
• Use of Low Pressure Injection Moulding (LPIM) process reducing the need for glue and chemicals.
• Vehicle weight reduction by 4 to 6 kg through 'replacing steels with plastics', reducing fuel consumption and greenhouse gas emissions.
• Exhaust gas emissions compliance with “Emission Standard of Air Pollutants for Industrial Coating Process” (DB33/2146-2018).

Social Achievements

• OHSAS 18001 certification for occupational health and safety management obtained.
• Safe Production Standardization Certificate awarded by The State Administration of Work Safety obtained.
• No work-related fatalities during the year.
• Over 300 different trainings for employees, including occupational skills, administrative management, production safety and product quality.
• Implementation of the “Huazhong Craftsmen” scheme for talent development.

Governance Achievements

• Established a confidential complaint reporting channel for whistleblowers.
• Implementation of anti-corruption training for newly hired employees.
• Anti-corruption Agreements with major customers and suppliers.

Climate Goals & Targets

Environmental Challenges

• 8 cases of work-related injuries, all caused by human errors.
• Pandemic impact reducing production and renewable energy contribution.

Mitigation Strategies

• Investigations to analyze root causes of work-related injuries and formulate corrective measures.
• Pandemic prevention team established and various prevention measures implemented.
• Continued investment in renewable energy to reduce reliance on traditional energy.

Supply Chain Management

Supplier Audits: Regular monthly evaluation based on product return rates and production line feedback.

Responsible Procurement

• Requirement for suppliers to obtain ISO/TS 16949 Quality System certification.
• Supplier selection based on price, technology, production capacity, delivery time, product and service quality, environmental protection, ethical behavior, and social responsibility.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: “Environmental, Social and Governance Reporting Guidance” under Appendix 27 to the Rules Governing the Listing of Securities issued by The Stock Exchange of Hong Kong Limited

Certifications: ISO 14001:2015, IATF 16949:2016, OHSAS 18001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Products made using LPIM process.

Awards & Recognition

• 2019 New Provincial New Hi-tech Enterprise Research and Development Centre

Environmental Metrics

ESG Focus Areas

• Product and Service Responsibility
• Operation Practices
• Quality of Working Environment
• Environmental Protection and Green Operation
• Contribution to the Community

Environmental Achievements

• Reduced total greenhouse gas emissions from 155,053.6 tonnes of CO2e in 2020 to 114,272.1 tonnes of CO2e in 2021.
• Reduced hazardous waste from 26.8 tonnes in 2020 to 46.4 tonnes in 2021.
• Reduced energy consumption from 668,909.5 MWh in 2020 to 492,097.7 MWh in 2021.
• Reduced water consumption from 107,108.0 m3 in 2020 to 85,192.0 m3 in 2021.

Social Achievements

• Implemented various safety measures to strictly monitor product manufacturing processes, resulting in zero work-related fatalities for three consecutive years.
• Provided various safety training and conducted regular safety inspections to enhance employee safety awareness.
• Organized team-building activities to promote employee well-being and sense of belonging.
• Provided additional employee benefits such as transportation tickets, birthday coupons, medical checkups, and gifts on traditional festivals.

Governance Achievements

• Established a comprehensive safety management system and obtained OHSAS 18001 certification for occupational health and safety management.
• Established an ESG governance structure with an ESG working group authorized by the Board.
• Conducted an ESG risk assessment to identify and mitigate potential risks.

Climate Goals & Targets

Environmental Challenges

• Extreme weather events caused by climate change could result in business instability or disruption.
• New climate policies and regulatory requirements could impose greater operating costs.
• Increasing consumer demand for sustainable products could impact business development if not met.

Mitigation Strategies

• Established an emergency response leadership team to handle emergencies effectively.
• Regularly monitors resource use and makes improvement suggestions; uses renewable energy to reduce emissions.
• Strictly monitors and controls air emissions and energy consumption during production; uses activated carbon adsorption and water spraying methods to purify air emissions.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Requires all suppliers to obtain ISO/TS 16949 Quality System certification.
• Conducts supplier evaluation based on various factors including environmental protection, ethical behavior, and social responsibility.
• Requires suppliers to sign an Environment/Occupational Health and Safety Agreement.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (floods, typhoons)

Transition Risks

• Changes in climate-related government policy and regulatory requirements

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: “Environmental, Social and Governance Reporting Guidance” under Appendix 27 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited

Certifications: ISO 14001: 2015, IATF 16949: 2016, OHSAS 18001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 8 (Decent work and economic growth)
• Goal 9 (Industry, innovation, and infrastructure)
• Goal 12 (Responsible consumption and production)
• Goal 13 (Climate action)

The Group's initiatives in energy conservation, employee development, technological innovation, waste reduction, and climate change mitigation contribute to these SDGs.

Sustainable Products & Innovation

• Developed the production technology of “replacing steel with plastic”.

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Fair and Ideal Working Environment
• Fulfillment of Product Responsibility
• Technological Innovation
• Care for the Society

Environmental Achievements

• Obtained ISO 14001:2015 Environmental Management System certification.
• Used 1,169 MWh of solar energy.
• Developed “replacing steel with plastic” technology, reducing vehicle weight and fuel consumption.
• Implemented LPIM process reducing the use of glue and other chemical substances.

Social Achievements

• Organized team-building activities to promote employee well-being.
• Provided various additional benefits to employees (medical checkups, birthday banquets, etc.).
• Conducted employee training programs (11,522.10 hours total).
• Implemented measures to prevent child and forced labor.

Governance Achievements

• Established a comprehensive safety management system and obtained OHSAS 18001 certification.
• Established an ESG governance structure with a working group overseen by the Board of Directors.
• Implemented policies and procedures to prevent unauthorized use or disposition of assets.
• Formulated anti-corruption policies and procedures, including a reporting channel.

Climate Goals & Targets

Environmental Challenges

• Potential risks from climate change (physical risks like extreme weather and transition risks like stricter regulations).
• Managing environmental and social risks in the supply chain.

Mitigation Strategies

• Formulated environmental protection measures to reduce energy consumption and control greenhouse gas emissions.
• Developed an “Emergency Plan for Typhoon and Flood Prevention”.
• Implemented Supplier Development and Assessment Control Procedure to manage supply chain risks.
• Signed Environmental/Occupational Health and Safety Agreement with suppliers.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Requires all suppliers to obtain ISO/TS 16949 Quality System.
• Supplier evaluation based on environmental protection, ethical behavior, and social responsibility.
• Environmental/Occupational Health and Safety Agreement with suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Staff injuries and facilities damage
• Supply chain disruptions

Transition Risks

• Rising costs due to stricter carbon reduction regulations

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: “Environmental, Social and Governance Reporting Guidance” under Appendix 27 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited

Certifications: ISO 14001:2015, IATF 16949:2016, OHSAS 18001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 9 (Industry, innovation, and infrastructure)
• Goal 12 (Responsible consumption and production)
• Goal 13 (Climate action)

The report details how various initiatives contribute to these goals.

Sustainable Products & Innovation

• Products using “replacing steel with plastic” technology
• Products made using LPIM process

Awards & Recognition

• “Provincial Enterprise Institute” by the Department of Science and Technology of Zhejiang Province

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Fair and Ideal Working Environment
• Fulfillment of Product Responsibility
• Technological Innovation
• Care for the Society

Environmental Achievements

• Obtained ISO 14001 Environmental Management System certification.
• Listed in the List of Green Factory of Ningbo Municipal for the year 2023.
• Reduced total greenhouse gas emissions from 126,101.75 tonnes of CO2e in 2022 to 97,665.27 tonnes of CO2e in 2023.
• Reduced energy consumption from 545,695.97 MWh in 2022 to 421,374.55 MWh in 2023.
• Reduced water consumption from 77,408.00 m3 in 2022 to 137,189.00 m3 in 2023 (Note: This seems contradictory; further investigation needed).

Social Achievements

• Provided 8,263.50 hours of employee training in 2023 (average 9.27 hours/person).
• Organized team-building activities to promote employee well-being.
• Maintained a low number of work-related injuries (1 in 2023, down from 4 in 2022).
• Reduced employee turnover rate from 32.40% in 2022 to 27.29% in 2023.

Governance Achievements

• Established an ESG governance structure with an ESG working group authorized by the Board.
• Implemented a zero-tolerance approach towards corruption.
• Established reporting channels for whistleblowers.

Climate Goals & Targets

Environmental Challenges

• Climate change related physical risks (staff injuries, facility damage, supply chain disruptions due to adverse weather).
• Climate change related transition risks (rising costs due to stricter carbon reduction regulations).

Mitigation Strategies

• Formulated environmental protection measures, including establishing an energy conservation and emission reduction working group.
• Developed an “Emergency Plan for Typhoon and Flood Prevention” and an “Emergency Plan for Human Resources and Administration Department”.
• Actively responding to government policies and requirements on climate change.

Supply Chain Management

Responsible Procurement

• Requires all suppliers to obtain ISO/TS 16949 Quality System.
• Supplier evaluation based on background, qualification, price, technology, production capacity, delivery time, product and service quality, and sustainable development.
• Signing of “Environmental/Occupational Health and Safety Agreement” with suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Injuries to staff, damage to plant facilities, delays or interruptions in the distribution of purchased parts caused by adverse weather.

Transition Risks

• Rising cost due to more stringent regulatory requirements on carbon reduction or implementation of carbon pricing.

Reporting Standards

Frameworks Used: “Environmental, Social and Governance Reporting Guidance” under Appendix C2 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited

Certifications: ISO 14001:2015, IATF 16949:2016, ISO 45001:2018

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 8 (Decent work and economic growth)
• Goal 9 (Industry, innovation and infrastructure)
• Goal 12 (Responsible consumption and production)
• Goal 13 (Climate action)

The report details how various initiatives contribute to these goals.

Sustainable Products & Innovation

• Products using low-pressure plastic injection molding (LPIM) process.
• Technology of “replacing steel with plastic”.

Awards & Recognition

• “Specialized, Fine, Unique and Innovative Small and Medium-sized Enterprises” (2023)
• Ningbo water-saving Enterprise