Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Employee Health and Safety
• Resource Utilization
• Supply Chain Management
• Anti-Corruption
• Community Investment

Environmental Achievements

• Zero fine in exhaust gas emission
• Strict waste sorting and recycling
• No emission of industrial wastewater (except for minimal air contaminant from administrative cars and generators)
• Professional recovery and processing of toxic waste
• Reduction in packaging materials by 33.04%
• Guangzhou Development Zone manufacturing base certified by Green Manufacturing System since 2018

Social Achievements

• Established Occupational Health and Safety System and SA8000 Social Responsibility System
• Zero employee deaths due to work from 2018-2020
• Significant decrease in lost days due to work-related injuries (7 days in 2020 vs 42 days in 2019)
• 100% of employees received training in 2020
• Implemented dual promotion paths for employees
• Total donation of HK$768,000 in PRC for social charity, poverty alleviation, and student assistance
• Zero infection cases during the COVID-19 pandemic
• Organized over 50 cultural and sports activities for employees in 2020

Governance Achievements

• Established ESG work leadership group
• Implemented effective internal control system covering financial, operational, and compliance controls
• Regularly reviews Group’s financial performance, operation, compliance mechanisms, and risk management function through the Audit Committee
• Implemented various anti-fraud and anti-corruption systems, including Employee Manual, Code of Conduct, and Management Code
• Organized 22 training sessions (55 training hours) on anti-corruption over three years

Climate Goals & Targets

Environmental Challenges

• Impact of COVID-19 pandemic on global economy, affecting market demand and delaying telecommunication network construction
• Decrease in revenue from major customers (China Mobile, China Unicom, China Telecom)
• Delays in global 5G construction due to COVID-19
• Increase in expenses such as trade tariffs, transportation fees, and depreciation of ETL’s equipment

Mitigation Strategies

• Strengthened cooperation with internationally-renowned key equipment suppliers in 5G development
• Completed placement financing, raising approximately HK$680 million to improve cash flow and prepare for 5G investment
• Increased 5G-related R&D investments
• Upgraded business expansion strategy to focus on more profitable projects
• Optimized servicing team and undertook higher quality construction projects
• Optimized solutions and scope for using administrative cars, encouraging public transport and ride-hailing services
• Consolidated frequency and route of shuttle buses
• Implemented flexible layout and upgraded intelligent manufacturing equipment in production workshops

Supply Chain Management

Supplier Audits: Over 50 suppliers audited in 2020

Responsible Procurement

• Comprehensive certification of new suppliers, including sustainable development system
• Agreement of Corporate Social Responsibility with material suppliers
• Requirement for suppliers not to purchase conflict minerals
• Due diligence and analysis on 90% of suppliers annually using OECD Guidelines and CMRT Form
• Collection of RoHS testing qualified reports from suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Typhoons
• Strong wind
• Extreme cold and humidity

Reporting Standards

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

Certifications: ISO14001, ISO9001, TL9000, SA8000

Awards & Recognition

• Technological Achievement Grand Award at the 2020 HK Awards for Industries
• Golden Prize of the 7th Guangdong Patent Award
• Silver Prize of the 7th Guangdong Patent Award
• Golden Award of the 24th National Invention Exhibition
• Advanced Enterprise in Production Safety
• Enterprise with Qualified Work Safety Standardizations

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Employee Health and Safety
• Resource Utilization
• Supply Chain Management
• Intellectual Property Rights
• Anti-Corruption
• Community Investment

Environmental Achievements

• Zero fine in exhaust gas emission
• Recycled and processed 18,000 tons of various wastes
• Greenhouse gas emission density continued to decline compared with that of 2020
• Electricity consumption reduced by 12% year-on-year
• Reduced the use of packaging accessories and packaging materials

Social Achievements

• Improved the accommodation conditions of the Group’s employees
• Improved the quality of canteen and built a new multi-functional activity center
• Held sports events, team building, staff care on holidays and other activities
• No employees died because of their work in the Group between 2018 and 2021
• Lost days caused by work-related injury were 6 days in 2021 (7 days in 2020)
• 100% of employees attended training

Governance Achievements

• Established the Occupational Health and Safety System, and SA8000 Social Responsibility System
• Established an ESG work leadership group
• Implemented various anti-fraud and anti-corruption systems
• Hong Kong subsidiary passed the certification of the ISO27001 Information Security Management System

Climate Goals & Targets

Environmental Challenges

• Intensified competition in the industry
• Surging bulk commodity prices
• Impact of the pandemic on the recoverability of receivables
• Increase in provision for outdated, obsolete and sluggish inventories

Mitigation Strategies

• Implemented the 5G strategy
• Won bids for centralized procurement projects of related 5G antenna products
• Expanded overseas business
• Increased R&D expenditure in 5G technology and new products
• Optimized the loan portfolio
• Improved cash flows
• Optimized the servicing team and undertook higher quality construction projects
• Launched new 5G products

Supply Chain Management

Supplier Audits: Over 43 suppliers/year

Responsible Procurement

• Agreement of Corporate Social Responsibility

Climate-Related Risks & Opportunities

Physical Risks

• Typhoons
• Strong wind
• Extreme cold and humidity

Reporting Standards

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

Certifications: ISO14001, SA8000, ISO9001, TL9000, ISO27001

Awards & Recognition

• Silver Prize of the 22nd China Patent Award
• Excellence Award of the 22nd China Patent Award
• Golden Prize of the 8th Guangdong Patent Award
• Silver Prize of the 8th Guangdong Patent Award
• Golden Award of the 25th National Invention Exhibition

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Employee Health and Safety
• Intellectual Property Protection
• Product Quality
• Information Security
• Anti-Corruption
• Community and Public Welfare

Environmental Achievements

• Reduced CO2 emission density by 41.77% year-on-year.
• Launched distributed photovoltaic power generation projects, generating 2.2 million kWh of electricity per annum and saving approximately RMB2.10 million annually.
• Reduced electricity consumption by 1% year-on-year.
• Zero fine in exhaust gas emission.
• Developed the innovative low-loss, high-efficiency and low-carbon green antenna, increasing energy conversion efficiency of the base station antenna by around 20%.

Social Achievements

• Maintained a robust performance management system and implemented performance assessment for all employees.
• Organized 52 training programs in relation to health and safety, fire extinguishing system, chemical safety and fire safety.
• Provided free medical examinations for all employees every year.
• No workplace fatalities in the past 3 years.
• No fire accidents reported across all business units, and there were no loss days caused by work-related injury.

Governance Achievements

• Established and improved its internal audit rules and regulations and the internal control system to strengthen internal supervision, risk management and anti-corruption management.
• Adopted a zero-tolerance attitude towards corrupt practices and insisted on operating in a lawful and compliant manner.
• Complied with all Code Provisions as set out in Appendix C1 of the Rules Governing the Listing of Securities.

Climate Goals & Targets

Environmental Challenges

• Slowdown of the construction plans for certain 5G network capital projects by major telecom operators in the Chinese Mainland, leading to a decline in revenue and gross profit of antenna products.
• Intensified competition in certain target markets.
• Depreciation in the exchange rate for Lao Kip against Hong Kong dollars.

Mitigation Strategies

• Focus on customer demand and commitment to product innovation and breakthrough, leading to satisfactory results in the sales of network products.
• Implementing effective operation and management policies as well as cost control measures.
• Repaid HK$1,443,610,000 of interest-bearing bank loans, significantly increased compared with the Prior Year.

Supply Chain Management

Supplier Audits: Over 36 suppliers have been selected for on-site audit in 2023.

Responsible Procurement

• Supplier Code of Conduct
• Supplier Social Responsibility Control Procedures
• Procedures for Supplier Certification and Management
• Agreement of Corporate Social Responsibility

Climate-Related Risks & Opportunities

Physical Risks

• Typhoons, strong wind, extreme cold and humidity

Transition Risks

• Accelerating popularity of the low-carbon economy, policy and market changes

Opportunities

• Development of energy-efficient products

Reporting Standards

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

Certifications: ISO14001, ISO45001, SA8000, ISO9001, TL9000, IATF16949

Third-party Assurance: Ernst & Young

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Green antenna solution (Helifeed™)
• Low-loss, high-efficiency and low-carbon green antenna

Awards & Recognition

• Advanced Enterprise in Production Safety
• Enterprise with Qualified Work Safety Standardizations
• Golden Prize and Excellent Prize of the 10th Guangdong Patent Award
• Gold Award of the 2023 Guangdong-Hong Kong-Macao Greater Bay Area High-Value Patent Portfolio Layout Competition
• Excellent Prize of the 24th China Patent Award
• Star of Helping the Disabled