Climate Change Data

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Risks associated with its business activities; general economic and political conditions, including those related to the PRC; the Guarantor’s ability to implement its business strategy and plan of operation; the Guarantor’s ability to expand and manage its growth; the Guarantor’s financial condition and results of operations; fluctuations in foreign currency exchange rates; and those other risks identified in the “Risk Factors” section of this Offering Circular.
• PRC regulations on the administration of local government debts and their financing vehicles will have a material impact on the Group’s financing and business models.
• Risks associated with contracting with public bodies, such as the Henan Provincial Government.
• The Group’s business operations are capital intensive and any failure to obtain sufficient capital resources on acceptable terms or in a timely manner may adversely affect its business and prospects.
• Substantial indebtedness will in turn increase the pressure on the Group’s liquidity and cause additional operational risks.
• The Group may be unable to effectively mitigate credit risk and maintain its asset quality, which could have a material adverse impact on its business, financial condition and results of operations.
• The Group requires significant funding to support its business and may not be able to obtain sufficient and timely funds to finance its operations or expansion.
• Deterioration in debt repayment abilities of local governments or adverse changes in PRC regulatory policies affecting government financing could materially and adversely affect the Group’s business, asset quality, financial condition, results of operations and prospects.
• The Group’s provisions for impairment losses on receivables may not be adequate to cover future credit losses, and the Group may need to increase the provisions for impaired receivables to cover such losses.
• The Group is subject to risks related to a variety of industries.
• Restrictive covenants contained in credit facilities may limit the Group’s ability to incur additional indebtedness and restrict its future operations, and failure to comply with these restrictive covenants may adversely affect its liquidity, financial condition and results of operations.
• Some of the Group’s assets are provided as security to secure the borrowings of the Group or its related parties.
• The Group’s relatively short history in its new business segments may make it difficult to evaluate their respective prospects and future financial performance.
• The Group’s other principal businesses may face credit and default risks of its key customers.
• Net cash outflows from operating activities may materially and adversely affect the Group’s liquidity and financial condition.
• Significant amount of other receivables may affect the Group’s liquidity and restrict the Group’s business activities.
• Any failure of the Group to comply with applicable laws, rules and regulations with respect to the regulation of its business operations, including obtaining or maintaining necessary qualifications, permits and approvals for its operations may adversely affect its business, financial condition and results of operations.
• The Group’s financial condition and results of operations may be affected by material fluctuations of interest rates.
• The Group may cease to enjoy government subsidies and grants, the loss of which, or a reduction in which, could adversely affect the Group’s business and financial condition.
• If the Group fails to maintain effective internal controls and sound corporate governance, its business, financial condition, results of operations and reputation could be materially and adversely affected.
• The Group’s limited insurance coverage may not adequately protect it against all operational risks.
• The Group is subject to various environmental, safety and health regulations in the PRC and any failure to comply with such regulations may result in penalties, fines, governmental sanctions, proceedings or suspension or revocation of its licenses or permits.
• The Group may not be able to detect and prevent fraud or other misconduct committed by its employees, representatives, agents, customers or other third parties.
• The Group’s business may be affected by any adverse publicity or negative public perception regarding the industries in which the Group operates, or stemming from other parties with which the Group has business relationships.
• Historical consolidated financial information of the Guarantor may not be indicative of its current or future results of operations.
• The Group relies on information technology systems for its business and any information technology system limitations or failures could adversely affect its business, financial condition and results of operations.

Mitigation Strategies

• The Group has established various internal risk management systems and policies to minimize the credit risk and maintain its asset quality.
• The Group manages liquidity risk by regularly monitoring the relative maturities between the assets and liabilities and by taking the necessary steps to maintain an appropriate and prudent balance of long-term and short-term funding sources.
• The Group funds its operations and expansion through external financing, including loans from policy and commercial banks and issuance of debt securities, in addition to the cash generated from its operations.
• The Group has implemented various measures to improve its internal controls and corporate governance, such as governance policies with respect to finance and investment activities and internal control measures to enhance the protection of confidential information.
• The Group maintains limited insurance policies and claims under the insurance policies may not be honoured fully or on time, or the insurance coverage may not be sufficient to cover costs associated with accidents incurred during the Group’s operations due to the above-mentioned operational risks.
• As at the date of this Offering Circular, the Group has not received any notice regarding non-compliance with the applicable safety regulations or requirements from any governmental authority.
• The Group’s internal control procedures are designed to monitor its operations and ensure overall compliance.

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: 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