Climate Change Data

Environmental Metrics

ESG Focus Areas

• Product responsibility
• Employment
• Development and training
• Anti-corruption
• Emissions
• Use of resources
• Environment and natural resources
• Community investment
• Supply chain management
• Health and safety
• Labour standards

Environmental Achievements

• Reduced paper consumption through mobile printing, saving 18,627 pieces of printing papers in total.
• Purchased energy-saving infrastructures and water-cooled air conditioners without freon.
• Purchased water-saving instruments and installed sensor faucets in washrooms.

Social Achievements

• Organized “Starry Sky Talk” for over 100 students.
• Revised management measures to clarify employee promotion principles.
• Launched a “Clear Spring Scheme” for job transfers.
• Organized “Sailing Training Camp” for new analysts.
• Conducted leadership training programs.
• Provided free annual physical examination and supplementary medical insurance.
• Planned a series of employee care activities — “Happiness Project”.

Governance Achievements

• Established an ESG management system.
• Formulated policies on internal compliance, including Code of Business Conduct and Ethics, Policies for Anti-Money Laundering and Counter-Terrorist Financing, and Information Barrier Procedures.
• Implemented Information Technology Security Management Rules and Internet Security Access Management Measures.
• Formulated Trademark Management Measures.
• Established a Customer Complaint Handling System.
• Formulated Policies for Anti-Money Laundering and Counter-Terrorist Financing and Measures for Reporting Management.
• Invited the Independent Commission against Corruption to train employees on anti-fraud and anti-corruption.

Climate Goals & Targets

Environmental Challenges

• Challenges in the domestic and global economic/financial landscapes and delay on execution in investment banking.
• PE fundraising for the industry shrank by 34.0% YoY, affected by new investment management rules, macro uncertainties and difficulties exiting in a lukewarm secondary market.
• Subdued economic activities against COVID-19, which will likely slow down the revenue realization of investment banking projects.

Mitigation Strategies

• Optimized business model to capitalize on potential in China’s investment management and wealth management.
• Shifted priority from fund scale to investment targets in investment management.
• Maintained leading position in private placement financial advisory.
• Focused on client retention and rapport with strong project backlog.
• Established strategic cooperation agreements with LGT Bank and Aozora Bank for private wealth management.
• Launched structured financing and wealth management as new revenue drivers.
• Postponed the schedule of returning to work and formulated the Guidance on Resumption of Work during the Period of COVID-19 Outbreak and the Prevention and Control Plan for Resumption of Work.

Supply Chain Management

Responsible Procurement

• Procurement Committee
• Measures for Supplier Management
• Measures for Procurement Management
• Measures for Bidding Management
• Supplier management platform
• Green procurement

Climate-Related Risks & Opportunities

Awards & Recognition

• Top IPOs in China
• Top Domestic M&As in China
• Sustainable Development Benefit Award
• 2019 Ram Charan Management Practice Award
• 2019 ‘YUE Management’ Practice Award
• Most Innovative Award for Hong Kong-Listed Companies
• TMT M&A Financial Adviser of the Year
• Top 1 of the Best Chinese Institutions in 2019
• Top 10 Best Private Equity Investment Funds in China 2019
• Top 100 Most Popular Founding Partners for Private Funds in China in 2019
• Top 10 Venture Capital Firms in Biological Medicine Industry in China
• Top 20 Venture Capital Firms in Internet/Mobile Internet Industry in China
• Top 10 Venture Capitalists in Internet/Mobile Internet Industry in China
• Best Fintech Investment Institution
• Top 10 Best PE Institutions of the Year
• Award for Scientific and Innovative Value of Investment Institutions
• Top 10 Best PE Investment Institutions of the Year

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Challenging IPO and secondary stock markets in Hong Kong and the US.
• Pressure on private placement, IPO underwriting, and investment portfolio valuation.

Mitigation Strategies

• Pursued progress in a prudent manner.
• Developed more diversified products and strategies (private credit funds and FoHF).
• Accelerated the realization of carried interest.
• Carried out exits from portfolio projects (RMB6.7 billion).
• Mitigated market risks, resulting in business improvement in the second half of 2022.
• Actively repaid syndicated loans in the first quarter of 2023 to reduce debt and lower financial costs.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Extremely challenging market conditions in the first half of 2022, including a tough IPO market in Hong Kong and the US, and a significant decrease in private placement transactions.
• Valuation corrections in the investment portfolio of the investment management business.

Mitigation Strategies

• Effective control of downside risks from valuation corrections, demonstrating outstanding risk control.
• Development of more diversified products and strategies (private credit funds and FoHF) to capture investment opportunities and provide comprehensive solutions to new-economy enterprises.
• Improved distributed-to-paid-in capital (DPI) ratio through agile exits from projects, accelerating the realization of carried interests.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Sluggish Hong Kong IPO market.
• Significant decline in fundraising for US-listed Chinese stocks.
• Weak domestic investment sentiment in the private financing market.
• Pressure on the Group’s business development since February 2023 due to Mr. Bao Fan’s cooperation with relevant authority’s investigation.

Mitigation Strategies

• Maintained strategic focus.
• Active exit from fund projects (RMB 2 billion).
• Continued to maintain a competitive market position in the private financing sector.
• Strategic positioning in key areas of the new economy (new energy, hard technology, advanced manufacturing) began to bear fruit.
• Strategic transformation for its retail business and optimized its client structure.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Sluggish market environment
• Decline in overseas China Concept Stock IPOs
• Subdued trends in investment and financing markets

Mitigation Strategies

• Proactive adjustment of personnel structure
• Focus on project exits and post-investment management in investment management business
• Expansion into new business directions and products in investment banking business
• Development of diversified capital market products in Hong Kong and US equity business

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS

Third-party Assurance: Zhonghui Anda CPA Limited