Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Community service
• Corporate governance
• Employment
• Health and safety
• Employee training and development
• Supply chain management
• Product responsibility

Environmental Achievements

• Reduced GHG emission volume by using EU 5 trucks, detailed inventory plan to reduce shipments, and maximizing waterway transport.
• Generated 91.72 tonnes of waste during renovation, with 72.7 tonnes being construction waste and 19.02 tonnes other waste. Recyclable materials were properly disposed of.
• Achieved daily energy savings of 11.62 kWh by adopting LED lights in the Tsim Sha Tsui office.

Social Achievements

• Organized the 3rd Hin Sang Scholarship, awarding 83 students from low-income families.
• Continued participation in community services and charity events, including Pok Oi Cycle for Millions and Pok Oi Charity Heritage Walk.
• Hin Sang Volunteering Team actively participated in various community and charitable activities.

Governance Achievements

• Established a Code of Conduct for employees, covering benefits, conflicts of interest, and confidentiality.
• Implemented anti-corruption training for approximately 100 employees.
• Established a whistle-blowing mechanism.

Climate Goals & Targets

Environmental Challenges

• Competitive retail environment in Hong Kong and China.
• Weakened purchasing power of tourists from the PRC and PRC citizens.
• High operating costs in the start-up Healthcare Segment.

Mitigation Strategies

• Actively expanding the mother-infant Chinese medical healthcare and treatment services business.
• Developing new products and brands for mother-infant healthcare (Hin Mei brand).
• Expanding sales opportunities in overseas markets (Australia and Southeast Asia).
• Expanding cross-border e-commerce.
• Constructing a production plant for health supplements in Yunfu City, Guangdong Province to reduce costs and improve quality control.
• Acquiring an industrial property in Shatin, Hong Kong to serve as a GMP manufacturing plant and warehouse.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Evaluating environmental, social, and governance factors when selecting suppliers.
• Requiring suppliers to meet certain standards of conduct, including environmental protection and social responsibility.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Appendix 27 of the Listing Rules’ Environmental, Social and Governance Reporting Guide

Certifications: Caring Company (awarded for 11 consecutive years)

Third-party Assurance: Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Caring Company
• Chinese Medicine Award
• GCCA 100% HK Branding Award
• Consumers’ Most Favourable Hong Kong Brand Gold
• Outstanding Corporate Social Responsibility Award

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Community service
• Corporate governance
• Employee well-being
• Supply chain responsibility

Environmental Achievements

• Reduced GHG emissions (details in report, but not quantified in a single percentage)
• Reduced energy consumption by 37.63% in air conditioning
• Used EU 5 trucks across the board
• Adopted detailed inventory plan to reduce shipments
• Maximized use of waterway transport
• Advanced planning of shipping routes to avoid peak seasons and traffic jams
• Adoption of LED lights resulting in daily savings of 11.62 kWh

Social Achievements

• Established Hin Sang Scholarship in 2015, awarding 65 students in 2018
• Consistently awarded “Caring Company” for 12 consecutive years
• Organized Hin Sang Health Day for employee well-being
• Implemented employee training programs (21.5 hours on OHS and 43 hours on environmental protection)

Governance Achievements

• Established Code of Conduct covering benefits, conflicts of interest, and confidentiality
• Implemented anti-corruption training (21.5 hours)
• Established whistle-blowing mechanism
• Complied with Corporate Governance Code (with some deviations explained in the report)

Climate Goals & Targets

Environmental Challenges

• Weakened purchasing power of tourists from PRC and PRC citizens impacting Hong Kong and PRC market revenue
• Competitive retail environment in Hong Kong

Mitigation Strategies

• Actively expanding industrial sightseeing tourism business (Pengzu Hin Sang Pavilion)
• Developing new products and brands for mother-infant healthcare (Hin Mei brand)
• Independent production of health supplements in Yunfu City, Guangdong Province, China
• Expanding sales opportunities in overseas markets (Australia and Southeast Asia)
• Expanding cross-border and international e-commerce

Supply Chain Management

Supplier Audits: Evaluated 2 new suppliers and some existing critical suppliers, with on-site assessments where necessary

Responsible Procurement

• Requires supplied products to be free from toxic substances
• Sets standards of conduct in procurement contracts covering environmental protection and social responsibility (child labor, forced labor, discrimination, fair wages, safe working environment, sustainable development)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Appendix 27 of the Listing Rules’ Environmental, Social and Governance Reporting Guide

Awards & Recognition

• Consumers’ Most Favourable Hong Kong Brand Gold
• GCCA 100% HK Branding Award
• Certificate of Merit – Best in ESG Awards (Main Board, Small Market Capitalisation) BDO ESG Awards 2019
• Caring Company

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Community service
• Corporate governance
• Employee well-being
• Supply chain management

Environmental Achievements

• Implemented energy-saving measures (LED lights, public transport encouragement, video conferencing), resulting in daily electricity savings of 11.62 kWh at the Tsim Sha Tsui office.
• Utilized EU 5 trucks, detailed inventory planning to reduce shipments, and maximized waterway transport to reduce GHG emissions.
• Implemented waste reduction and recycling programs, including double-sided photocopying and reuse of paper.

Social Achievements

• Consistently awarded "Caring Company" for 14 consecutive years by The Hong Kong Council of Social Services.
• Established the "Hin Sang Scholarship" to support students from low-income families.
• Actively participated in various community services and charity events, donating anti-epidemic packs and alcohol handrub.

Governance Achievements

• Established a Code of Conduct covering benefits, conflicts of interest, and confidentiality.
• Implemented anti-corruption policies and training (2.5 hours for directors, 580 hours for employees).
• Established a whistle-blowing mechanism.

Climate Goals & Targets

Environmental Challenges

• Highly competitive market environment.
• Slumping Hong Kong retail environment due to social movements and COVID-19.
• COVID-19 pandemic's impact on tourism and retail sales.
• Liquidity pressure, with current liabilities exceeding current assets.

Mitigation Strategies

• Construction of a production plant in Yunfu City to reduce costs and improve efficiency.
• Expansion into Mainland China market with new product launches.
• Expansion of overseas markets (Australia, Southeast Asia).
• Expansion of cross-border e-commerce.
• Implementation of measures to improve profitability and operating performance, control costs, and seek additional financing.

Supply Chain Management

Responsible Procurement

• Evaluation of ESG factors in supplier selection.
• Requirement for suppliers to adhere to a code of conduct, including environmental protection and social responsibility.

Climate-Related Risks & Opportunities

Awards & Recognition

• Caring Company Award (14 consecutive years)