Climate Change Data

Environmental Metrics

ESG Focus Areas

• Community Investment
• Sustainable Operating Practices
• Workplace Environment
• Environmental Protection

Environmental Achievements

• Implemented green manufacturing approach for ready mixed concrete operation, maximizing resource efficiency and actively recycling wastewater.
• Used EURO 5 trucks to reduce energy consumption and carbon emissions.
• Monitored materials, waste and recycling in operations; implemented measures to improve recycling efficiency.
• Maintained at least 80% loading capacity on trucks to reduce environmental impact.

Social Achievements

• Sponsored HKD$300,000 to the North District Soccer Recreation Club Limited.
• Committed to fostering staff well-being and providing a safe and healthy workplace.
• Committed to encouraging workplace diversity and equal opportunity.

Governance Achievements

• Strengthened oversight of risk management and internal control, and disclosures of corporate social responsibility.

Climate Goals & Targets

Environmental Challenges

• Metal products operation in Mainland China faced pressure from rising costs, weak market conditions, and intensified competition.
• Over-expansion in production capacity resulted in cut-throat competition.
• Hong Kong construction industry affected by filibustering against funding approval for public works.
• Overall performance declined compared to the previous year due to upfront expenses incurred in business restructuring and development of new business.

Mitigation Strategies

• Gradual transition towards mid-range and high-end product markets to mitigate competitive pressures.
• Development of high-end steel wire rope products.
• Merger of plant and equipment with Tianjin Metallurgical Group (TMG) to double production capacity.
• Assembled a team of overseas experts to improve machinery performance and develop high-end products.
• Increased investments in value-added steel processing and expanded operations in Tai Po Industrial Estate, Hong Kong.

Supply Chain Management

Responsible Procurement

• Committed to managing and strengthening supply chain in a socially and environmentally responsible manner; sourcing from suppliers prioritizing environmental and ethical performance.

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• High-end steel wire rope products

Environmental Metrics

ESG Focus Areas

• Occupational Health and Safety
• Environmental
• Social
• Governance

Environmental Achievements

• Reduced total direct and indirect carbon emissions (Scope 1&2) by 9.95% compared to 2021; reduced total direct and indirect carbon emissions (Scope 1&2) per production volume by 17.31% compared to 2021; reduced total electricity consumption by 3.26% compared to 2021; reduced electricity consumption per production volume by 10.64% compared to 2021; reduced total quantity of chemical waste by 9.09% compared to 2021.

Social Achievements

• Reduced employee turnover rate to 19% in 2022 from 28% in 2021; provided approximately 57,000 hours of training to 1,310 (89%) employees; no work-related fatalities in the past three years; maintained labour peace and complied with relevant laws and regulations relating to compensation and dismissal, recruitment and promotion, working hours, rest period, equal opportunity, diversity and anti-discrimination.

Governance Achievements

• Formalized a Sustainability Committee under the Board of Directors; implemented a whistle-blowing policy; maintained compliance with the Corporate Governance Code (except for Code provision C.1.6 in one instance); the Board comprises four executive directors and five independent non-executive directors.

Climate Goals & Targets

Environmental Challenges

• Significant decrease in profit attributable to a special gain from the disposal of a Mainland China business in the prior year and the negative impact of the COVID-19 pandemic; resurgence of the pandemic in Mainland China leading to restrictions on personnel and logistics, shrinking domestic market, and sluggish real estate market affecting elevator wire rope business; fluctuating steel prices affecting steel distribution business in Hong Kong.

Mitigation Strategies

• Group’s management maintained normal operations for all businesses during the pandemic; development of high-performance lifting rope project in Tianjin offsetting negative impact of the contraction of the elevator wire rope market; added a new ready mixed concrete production line in Q1 2023 to enhance production capacity; implemented various practices to deal with environmental protection, including continuous investment in facilities featuring the latest technology, leading to reduced energy consumption and gaseous emissions.

Supply Chain Management

Supplier Audits: Annual partnership evaluation for key suppliers and subcontractors

Responsible Procurement

• Established checklist to assess supplier suitability (pricing, services, technical capability, quality of raw materials, location, delivery time and services); conduct partnership evaluation for key suppliers and subcontractors on quality, environmental and occupational safety.

Climate-Related Risks & Opportunities

Reporting Standards

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

Certifications: ISO 14001 (Building Construction Materials sector), ISO 9001:2015 (Building Construction Materials sector)