Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• People-oriented
• Building a Brand
• Care for the Community

Environmental Achievements

• GHG emissions decreased by 47.61% compared to the previous year.
• Total energy consumption decreased by 18.03% compared to the previous year.
• Total water consumption decreased by 44.10% compared to the previous year.
• Achieved a 27.89% recovery rate for non-hazardous waste.

Social Achievements

• Won the “2018 Best Employer in Real Estate Enterprises of the PRC”,
• No accidents due to work-related deceases and work-related injuries during the reporting period.
• Achieved 84% customer satisfaction rate.
• Donated RMB1 million to Xinjiang Youth Development Foundation to support the construction of “Ronshine Hope Reading Room”.

Governance Achievements

• Complied with all applicable code provisions under the Corporate Governance Code during the year ended 31 December 2018, save and except for the deviation from Code Provision A.2.1.
• Directors confirmed their compliance with the Model Code for Securities Transactions by Directors.

Climate Goals & Targets

Environmental Challenges

• The Group is and will continue to be dependent on the performance of its PRC property sector.
• The Group may not be able to identify suitable land or acquire land use rights for future development at commercially reasonable costs.
• The Group has substantial indebtedness and may incur additional indebtedness in the future, and may not be able to generate sufficient cash to satisfy its outstanding and future debt obligations and to fund its capital expenditures.
• The results of operations of the Group may fluctuate due to factors such as the schedule of the Group’s property development and the timing of property sales.
• The Group may not be able to complete its projects according to schedule.
• The Group has significant cash outflow from operations and may not be able to timely obtain sufficient financing to fund the Group’s land acquisitions or property developments.
• The Group is subject to certain restrictive covenants in and risks associated with bank borrowings and trust and other borrowings which may limit or otherwise materially and adversely affect the Group’s business, results of operations and financial condition.

Mitigation Strategies

• Actively manages the leverage level, expands the financing channels, and continuously optimizes the capital structure and debt structure.
• Adopted a more prudent land acquisition policy, accurately capitalize on the market outlook, and focuses on acquiring more land reserves of quality and high potential.
• Completed the placing of 103.5 million shares at HK$10.62 per share, with proceeds of approximately HK$1.1 billion.
• Completed the issuance of US$1.0 billion offshore senior notes, RMB1.3 billion domestic asset-backed securities (ABS) and RMB2.0 billion domestic corporate bonds specialized in rental housing.

Supply Chain Management

Responsible Procurement

• strict requirements for suppliers with fair and equal selection, evaluating suppliers based on their qualifications, business reputation, cooperation experience and good service awareness, requiring suppliers to sign the “Integrity Cooperation Agreement”

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Appendix 27 of the Rules Governing the Listing of Securities

Awards & Recognition

• “2018 Best Employer in Real Estate Enterprises of the PRC”,
• “2018 Corporate Social Responsibility Targeted Poverty Alleviation Award”

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Social Responsibility
• Corporate Governance

Environmental Achievements

• Reduced total GHG emissions (Scope 1 & 2) from 502.01 tonnes of CO2e in 2019 to 411.33 tonnes of CO2e in 2020.
• Ronshine Sunkwan Center received WELL Gold rating Pre-certification from the International WELL Building Institute.
• Rongxin Xuhui Century One Mile Development Project successfully passed the Shanghai Municipal Management Commission of Housing and Urban-Rural Development ultralow energy consumption program.

Social Achievements

• Launched the “CARE+ Healthy Home” product series.
• Launched the “Project Xinxing” training program.
• No major liability accident on construction safety and quality in 2020.

Governance Achievements

• Established an Environmental, Social and Governance (ESG) Task Force in 2020.
• Complied with all applicable code provisions under the Corporate Governance Code throughout the year ended 31 December 2020, save and except for the deviation from code provision A.2.1.

Climate Goals & Targets

Environmental Challenges

• The outbreak of the 2019 Novel Coronavirus (“COVID-19”) had brought unprecedented challenges and added uncertainties to the economy. COVID-19 may affect the financial performance and position of the Group, including the delay in construction and delivery of properties, decrease in rental and service revenue and occupancy rate of investment properties and hotels, fair value of investment properties, allowance for expected credit losses on trade and other receivables and so on.

Mitigation Strategies

• The Group kept continuous attention on the situation of the COVID-19 and reacted actively to its impact on the financial position and operating results of the Group.
• Launched online sales centers for all its projects nationwide in response to the government’s call for not gathering and not going out.

Supply Chain Management

Responsible Procurement

• Established its own Supplier Management System to strictly regulate the process of supplier identification, registration, evaluation, shortlisting and selection

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Appendix 27 of the Rules Governing the Listing of Securities

UN Sustainable Development Goals

• Goal 7
• Goal 13

The Group adopted and identified the United Nations Sustainable Development Goals (SDGs) that are relevant to its business, with a view to further integrating them into its corporate policies and day-to-day basis, so as to perform its social responsibilities and strive for sustainable development.

Sustainable Products & Innovation

• CARE+ Healthy Home

Awards & Recognition

• Best ESG Award at the 5th “Golden Hong Kong Stock”, Enterprise of Innovation in Public Welfare 2020, Charity Case of the Year of China’s Top 10 Real Estate Brands 2020, China’s Socially Responsibility Real Estate Developer 2020