Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Occupational health and safety
• Supply chain management
• Product quality assurance
• Corporate governance
• Community investment

Environmental Achievements

• Implemented an environmental management system with ISO14001:2015 certification.
• Adopted measures to mitigate direct GHG emissions from petrol consumption and natural gas use.
• Implemented measures to reduce energy consumption.
• Invested in a water treatment and recycling system.
• Adopted various measures to reduce dust generated during production.
• Transitioned from using coal to natural gas for boilers.

Social Achievements

• Established a fair, reasonable, and competitive remuneration system.
• Legally pays “five social insurance and one housing fund” for its employees.
• Maintains a robust, transparent and fair recruitment process.
• Provides induction training and on-the-job training to all employees.
• Encourages employees to participate in external training activities.
• Created a safe and healthy working environment with OHSAS18001:2007 certification.
• Provided fire hazard training and first aid training to employees.
• Took precautionary measures to safeguard employees’ health and safety during the COVID-19 outbreak.
• Made donation to The Community Chest of Hong Kong and was awarded with the "Award of Merit 2019/2020".

Governance Achievements

• Established a whistle-blowing mechanism to report suspected fraudulent activities.
• Incorporated a section in the Employee Handbook regarding the procedures for employees to report any suspected fraudulent activities.
• Solid corporate governance is the key to its continuous growth and development.
• The Group does not tolerate any forms of corruption, fraud and all other behaviours that severely damage the business integrity and reputation of the Group.

Climate Goals & Targets

Environmental Challenges

• Reducing energy consumption and GHG emissions.
• Reducing sewage discharge into water and land.
• Managing non-hazardous waste (mainly office paper).
• Minimising significant negative impacts on the environment and natural resources.
• Reducing dust and noise generated during production processes.

Mitigation Strategies

• Regularly maintaining boilers and vehicles, planning routes, switching off engines when idling.
• Implementing energy-saving measures (reminders, switching off idle machines, purchasing energy-efficient equipment).
• Investing in a water treatment and recycling system.
• Reducing the use of single-use disposable items, reusing waste paper, printing electronically only when necessary, recycling equipment.
• Cleaning vehicles, spraying water on roads, using enclosed conveyor belts, covering raw materials, constructing an enclosed green environmental protection station.
• Installing soundproof walls in the production plant.

Supply Chain Management

Supplier Audits: Annual visits to main suppliers’ business premises

Responsible Procurement

• Requires suppliers to provide quality control certificates and business licenses.
• Uses a comprehensive supplier’s questionnaire.
• Conducts tests on raw materials before and after delivery.
• Periodically evaluates and monitors supplier performance.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Environmental, Social and Governance Reporting Guide (Appendix 27 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited)

Certifications: ISO 14001:2015, OHSAS18001:2007, ISO 9001:2015

Awards & Recognition

• Award of Merit 2019/2020 from The Community Chest of Hong Kong

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Resource efficiency
• Employee health and safety
• Supply chain management
• Product quality and safety
• Anti-corruption
• Community investment

Environmental Achievements

• Reduced GHG emissions from 10,481.63 tCO2e in 2020 to 8,236.59 tCO2e in 2021.
• Implemented energy-saving measures reducing energy consumption.
• Implemented water-saving measures.
• Reduced non-hazardous waste (office paper) from 1.84 tons in 2020 to 1.77 tons in 2021.
• ISO14001:2015 certification for environmental management system.

Social Achievements

• Established a fair and competitive remuneration system.
• Provided employees with “five social insurance and one housing fund”.
• Implemented a robust, transparent, and fair recruitment process.
• Established Occupational Disease Prevention and Responsibility Policy.
• Provided safety training and implemented COVID-19 safety measures.
• Provided induction training and on-the-job training to all employees.

Governance Achievements

• Established anti-corruption policies and whistle-blowing procedures.
• No legal cases regarding corrupt practices during FY2021.
• Board oversees and sets out ESG strategies.

Climate Goals & Targets

Environmental Challenges

• Potential business interruption due to extreme weather events.
• Potential tightening of environmental regulations.
• Managing the high employee turnover rate (65.86%).

Mitigation Strategies

• Remaining alert to significant policy changes and reducing environmental impact.
• Taking comprehensive measures to deal with changing regulatory, technological, and market landscapes.
• Improving employee benefits and welfare to encourage retention.

Supply Chain Management

Supplier Audits: Annual visits to main suppliers

Responsible Procurement

• Quality control certificates
• Valid business licenses
• Trial samples
• Quality testing
• Open, fair, and transparent selection process

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (power shortages, operational interruptions, asset damage)

Transition Risks

• Tightening of national policies and listing rules

Reporting Standards

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

Certifications: ISO 14001:2015, OHSAS18001:2007, ISO 9001:2015

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced GHG emissions from 7,469.66 tCO2e in FY2022 to 2,697.27 tCO2e in FY2023. Intensity reduced from 22.98 tCO2e/million RMB revenue to 11.01 tCO2e/million RMB revenue.
• Implemented energy-saving measures, resulting in reduced energy consumption.
• Implemented water-saving measures, resulting in reduced water consumption from 37,881 m3 in FY2022 to 23,426 m3 in FY2023. Intensity reduced from 116.14 m3/million RMB revenue to 95.60 m3/million RMB revenue.
• Installed solar panels at manufacturing plant to generate renewable energy.
• ISO14001:2015 certification for environmental management system.

Social Achievements

• Maintained a supportive work environment, providing career development opportunities.
• Implemented occupational health and safety measures, obtaining OHSAS18001:2007 certification.
• Provided induction and on-the-job training to employees.
• Established a fair and competitive remuneration system, including social insurance and housing fund for employees.
• Implemented anti-discrimination and equal opportunity policies.
• No material non-compliance with relevant laws and regulations relating to providing a safe working environment and protecting employees from occupational hazards.

Governance Achievements

• Board of directors oversees and sets out ESG strategies.
• Annual assessment of risk management and internal control mechanism.
• Personnel assigned to identify and address ESG issues.
• Periodic reporting to the Board on ESG performance.
• No material non-compliance with relevant laws and regulations relating to bribery, extortion, fraud and money laundering.

Climate Goals & Targets

Environmental Challenges

• Climate change related risks such as extreme weather events (e.g., typhoons, rainstorms, floods) leading to potential damage to assets, business interruption, and supply chain disruptions.
• Transition risks from tightening national policies and listing rules.

Mitigation Strategies

• Regularly maintaining boilers and vehicles to minimize fuel consumption.
• Planning routes to optimize fuel consumption.
• Switching off engines when vehicles are idling.
• Implementing measures to reduce energy consumption.
• Monitoring changes in regulatory, technological and market landscape due to climate change and taking comprehensive measures to deal with changing situations.

Supply Chain Management

Supplier Audits: Annual visits to main suppliers

Responsible Procurement

• Quality control certificates (quality management systems, business licenses)
• Supplier questionnaires
• Trial samples before ordering
• Testing of raw materials upon delivery

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (e.g., extreme cold or extreme heat, storms, rainstorms and typhoons), power shortages, operational interruptions, asset damage

Transition Risks

• Tightening of national policies and listing rules

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: ESG Reporting Guide of Appendix C2 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited

Certifications: ISO 14001:2015, OHSAS18001:2007, ISO 9001:2015

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed