Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced power consumption by approximately 9.9% from 2019 to 2020 through energy-saving initiatives.

Social Achievements

• Provided regular training to employees to enhance their skills and technical expertise.
• Maintained a low employee turnover rate of 7.1% in 2020.

Governance Achievements

• Established an audit committee, a remuneration committee, and a nomination committee.
• Complied with the Code Provisions of the Corporate Governance Code.

Climate Goals & Targets

Environmental Challenges

• COVID-19 epidemic resulted in a one-off 35-day rental refund of approximately RMB4.5 million to tenants.
• Decrease in valuation gains on investment properties due to decrease of fair value of the Trading Centre.
• Increase in administrative expenses due to becoming a public company.

Mitigation Strategies

• Received government subsidies of approximately RMB4.4 million to partially compensate for rental refunds.
• Maintained high occupancy rates of approximately 99.8% and 100.0% for the first and second floors of the Trading Centre respectively after a public tender.
• Implemented cost-saving measures.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: ESG Reporting Guide (Appendix 27 to the Listing Rules)

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

• Complied with applicable environmental protection laws and regulations in relation to air and GHG emissions, discharge into water and land, and generation of hazardous and non-hazardous waste.
• Reduced electricity consumption intensity to 45.0 tCO2e/employee (from an unspecified previous year's value).

Social Achievements

• No employee turnover for the year.
• Provided regular training to employees (9-10 total training hours per employee).

Governance Achievements

• Full compliance with the Code Provisions of the Corporate Governance Code.
• Established an audit committee, a remuneration committee, and a nomination committee.

Climate Goals & Targets

Environmental Challenges

• Decrease in valuation gains of investment properties.
• Limited revenue growth.
• Increase in cash outflow in respect of interests for the loan.
• Fierce market competition.
• Cyclical nature of the real estate, manufacturing, and Measuring and Cutting Tools industries.
• Macro-economic situation in the PRC and worldwide.
• Potential for restrictive government policies in the PRC.

Mitigation Strategies

• Strengthening the position of the Trading Centre in the measuring and cutting tools industry.
• Carrying out innovation activities such as “five-star civilised and standardised market” and “smart market”.
• Improving the construction, management and service level of the Trading Centre.
• Realising the deep integration of Internet data, artificial intelligence and the real economy.
• Seizing opportunities presented by new business models such as livestream e-commerce and cross-border e-commerce.
• Planning and constructing phase II of the Science and Technology Innovation Park.
• Deepening collaboration with universities and scientific research institutions.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Storms
• Extreme heat

Transition Risks

• Changes in environmental-related regulations

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: ESG Reporting Guide (Appendix 27 to the Listing Rules)

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

• Complied with applicable environmental protection laws and regulations in relation to air and GHG emissions, discharge into water and land, and generation of hazardous and non-hazardous waste.
• Reduced total emissions from 1,259.0 tCO2e to 1,562.0 tCO2e

Social Achievements

• Provided regular training to employees to enhance their business efficiency and conduct yearly reviews of their performance.
• No employee resigned or retired during 2022.

Governance Achievements

• Fully complied with the Code Provisions of the Corporate Governance Code.
• Established three Board committees: audit committee, remuneration committee, and nomination committee.

Climate Goals & Targets

Environmental Challenges

• Risks relating to the property leasing business (profitability decline due to decrease in valuation gains, limited revenue growth, increase in cash outflow for loan interests, uncertainties in Industrial Park establishment, and fierce market competition).
• Risks relating to the industry (cyclical nature of real estate, manufacturing, and Measuring and Cutting Tools industries; macro-economic situation in the PRC and worldwide).
• Risks relating to conducting business in the PRC (changes in political, economic, and social policies and conditions in Zhejiang Province).

Mitigation Strategies

• The Group monitors its cash flows and cash balance on a regular basis and seeks to maintain optimal level of liquidity.
• The Group is committed to leveraging the advantages of “market + industry” and grasping the “dual engines” of smart manufacturing and digital economy to promote the iterative upgrade of professional markets and accelerate the transformation and rise of the measuring and cutting tools industry.
• The Group plans to acquire the vertical e-commerce operators in the measuring and cutting tools industry to integrate the resources of the market tenants and build a large-scale e-commerce platform for the measuring and cutting tools, and create a supply chain financial revenue system.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions such as flooding and storms
• Sustained high temperature

Transition Risks

• Change in environmental-related regulations

Reporting Standards

Frameworks Used: ESG Reporting Guide (Appendix 27 to the Listing Rules)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Complied with applicable environmental protection laws and regulations in relation to air and GHG emissions, discharge into water and land, and generation of hazardous and non-hazardous waste.
• Reduced paper consumption by encouraging employees to restrain printing.

Social Achievements

• Provided regular training to employees to enhance their business efficiency and conduct yearly reviews of their performance.
• Established work safety policies and procedures to ensure compliance with applicable work safety laws and regulations.
• Complied with applicable work safety-related regulations of the PRC in all material aspects. No work-related fatalities or injuries.

Governance Achievements

• Established an audit committee, a remuneration committee, and a nomination committee.
• Complied with the Code Provisions of the Corporate Governance Code except for the segregation of chairman and CEO roles.

Climate Goals & Targets

Environmental Challenges

• Decrease in sales of properties for the year ended 31 December 2023.
• Change from valuation gains on investment properties for the year ended 31 December 2022 to valuation loss on investment properties for the year ended 31 December 2023.
• Cyclical nature of the real estate, manufacturing, and Measuring and Cutting Tools industries.
• Macro-economic situation in the PRC and worldwide.

Mitigation Strategies

• Adjusted business strategy according to periodic trend and policy direction of the industry.
• Construction plan of the phase II of the Science and Technology Innovation Park.
• Enriching value-added services such as logistics, property and e-commerce.
• Carrying out mergers and acquisitions of upstream and downstream of the industry.
• Establish a cross-border e-commerce overseas team.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions such as flooding and storms
• Sustained high temperature

Transition Risks

• Change in environmental-related regulations

Reporting Standards

Frameworks Used: ESG Reporting Guide

Awards & Recognition

• Third prize of the cross-border e-commerce section of the “Zhijiang Entrepreneur” 2023 International E-commerce Entrepreneurship & Innovation Competition