Climate Change Data

Environmental Metrics

ESG Focus Areas

• Greenhouse gas emissions
• Energy consumption
• Water consumption
• Waste
• Saving energy measures
• Use of raw materials and packaging materials
• Compliance with laws and regulations relating to environmental protection
• Local community engagement
• Community investment
• Occupational health and safety
• Labour standards in supply chain
• Training and development
• Inclusion and equal opportunities
• Employee welfare
• Economic value generated
• Corporate governance
• Anti-corruption
• Supply chain management
• Customer privacy
• Customer satisfaction

Environmental Achievements

• Complied with all applicable PRC environmental laws and regulations in all material respects and had not been subject to any material penalty in relation to environmental protection.
• Accredited with the ISO 14001 certification of environmental management system.

Social Achievements

• Maintained good relationship with employees by arranging gatherings, celebration activities and trainings.
• Complied with the Labour Law of the PRC and did not experience any significant disputes with its employees or any disruption to business operations due to labour disputes.
• Did not experience any difficulties in the recruitment and retention of experienced core staff or skilled personnel.
• Provided comprehensive training and development opportunities to its employees on a regular basis.
• Had not experienced any material safety accidents or been penalised for any non-compliance relating to work safety laws and regulations.

Governance Achievements

• Adopted a board diversity policy.
• Complied with the code provisions set out in the CG Code from the Listing Date up to 31 December 2019 (except for code provision A.2.1).
• Adopted the Model Code set out in Appendix 10 to the Listing Rules as its code of conduct regarding Directors’ securities transactions.
• Established three committees: (i) the audit committee; (ii) the remuneration committee; and (iii) the nomination committee.

Climate Goals & Targets

Environmental Challenges

• Rapid technological changes with short product life cycle.
• Thin net profit margin.
• Concentration of customers.
• Fluctuations in the prices of raw materials.
• Outbreak of Coronavirus which materially and adversely affected global business activities and global economy.

Mitigation Strategies

• Continue to expand its production capacity, enhance its research and development capability, enrich its product portfolio and increase its sales and marketing effort to diversify its geographical locations.
• Carefully assesses the background information and credit worthiness of its customers before it decides to grant them credit periods.
• Closely monitors the payment record of its customers and regularly reviews the credit terms granted to them.
• Implemented appropriate business strategies for its future development.
• Working closely with its employees, suppliers and customers to mitigate the adverse impact arising from the outbreak of the novel coronavirus.

Supply Chain Management

Responsible Procurement

• Purchases raw materials and equipment based on its own needs, specifications, quality and safety performance of equipment, reputation, after-sales service and delivery time of the supplier.
• Compares different suppliers to select qualified suppliers before entering into contract.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Appendix 27 of the Listing Rules

Certifications: ISO 14001

Environmental Metrics

ESG Focus Areas

• Greenhouse gas emissions
• Energy consumption
• Water consumption
• Waste
• Saving energy measures
• Use of raw materials and packaging materials
• Compliance with laws and regulations relating to environmental protection
• Local community engagement
• Community investment
• Occupational health and safety
• Labour standards in supply chain
• Training and development
• Employee welfare
• Inclusion and equal opportunities
• Economic value generated
• Corporate governance
• Anti-corruption
• Supply chain management
• Customer privacy
• Customer satisfaction

Environmental Achievements

• Reduced nitrogen oxides (NOx) emissions to 9.92 kg (2020: 11.03 kg), sulphur oxides (SOx) emissions to 0.17 kg (2020: 0.22 kg), and respiratory suspended particles (PM) emissions to 0.73 kg (2020: 0.81 kg).
• Reduced refrigerant consumption to 50 kg (2020: 51 kg).
• Reduced water consumption to 32,820 cubic meters (2020: 41,865 cubic meters).
• Reduced paper consumption to 1.3 tonnes (2020: 1.3 tonnes).
• Reduced business air travel emissions to 173.37 tonnes (2020: 195.96 tonnes).

Social Achievements

• Maintained a safe working environment with no material safety accidents.
• Provided comprehensive training and development opportunities to employees.
• Complied with the Labour Law of the PRC and did not experience any significant disputes with employees.

Governance Achievements

• Complied with all applicable PRC environmental laws and regulations.
• Complied with all applicable laws on prohibiting corruption and bribery of the PRC.

Climate Goals & Targets

Environmental Challenges

• Global shortage of electronic components (particularly mobile chips), significantly increasing raw material costs.
• Decreased sales of mobile phones and PCBAs.

Mitigation Strategies

• More frequent communication with customers to confirm sales orders and with suppliers to secure raw materials.
• Actively sourcing new suppliers.
• Cost controls
• Regular communications with customers to secure sales orders and confirm delivery schedules.

Supply Chain Management

Supplier Audits: Annual monitoring of existing suppliers

Responsible Procurement

• Stringent criteria in supplier selection (including product specifications, product compliances, production management, quality management and ESG performances).

Climate-Related Risks & Opportunities

Physical Risks

• Disruption of operations due to extreme weather events.

Transition Risks

• Stricter environmental laws and regulations.
• Increased capital investment and compliance costs.

Reporting Standards

Frameworks Used: Appendix 27 of the Listing Rules

Certifications: ISO 14001

Environmental Metrics

ESG Focus Areas

• Greenhouse gas emissions
• Energy consumption
• Water consumption
• Waste
• Occupational health and safety
• Supply chain management
• Community investment
• Corporate governance
• Anti-corruption

Environmental Achievements

• Reduced greenhouse gas emissions to 6,182.38 tonnes in 2022 from 6,741.48 tonnes in 2021 (0.1 tCO2/m2 in both years). Reduction attributed to measures to reduce resource consumption, particularly electricity.
• Achieved ISO 14001 certification of environmental management system.

Social Achievements

• Maintained regular communication with employees through gatherings, celebrations, and training.
• Provided comprehensive training and development opportunities to employees.
• Complied with PRC labor laws; no significant disputes or disruptions due to labor disputes.

Governance Achievements

• Complied with code provisions of the Corporate Governance Code (except C.2.1), and the new CG Code requirements.
• Implemented whistleblowing policy and anti-fraud and anti-corruption policy.
• Annual assessment of independence of independent non-executive directors.

Climate Goals & Targets

Environmental Challenges

• Rapid technological changes in the mobile phone industry with short product life cycles.
• Thin net profit margin, making the company highly sensitive to changes in cost of sales, selling price, and sales volume.
• Concentration of customers.
• Fluctuations in raw material prices.
• Stringent climate legislations and regulations.
• Higher risks of claims and lawsuits due to stricter environmental laws and regulations.

Mitigation Strategies

• Prudent business development, enhanced R&D, enriched product portfolio, increased sales and marketing efforts for geographical diversification.
• Careful assessment of customer background and creditworthiness, close monitoring of payment records, regular review of credit terms.
• Regular monitoring of existing and emerging trends, policies, and regulations related to climate change; alerting the Board as necessary.
• Flexible working arrangements and precautionary measures during bad weather.

Supply Chain Management

Supplier Audits: Continuously monitors existing suppliers annually.

Responsible Procurement

• Stringent criteria in supplier selection (product specifications, product compliances, production management, quality management, ESG performance).

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (typhoons, storms, heavy rains) disrupting operations.

Transition Risks

• Stringent climate legislations and regulations; higher risks of claims and lawsuits; reputational risks.

Reporting Standards

Frameworks Used: Appendix 27 of the Listing Rules

Certifications: ISO 14001