Climate Change Data

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Supply Chain Management
• Employee Development
• Community Development
• Environmental Protection
• Climate Change
• Energy Conservation and Emission Reduction

Environmental Achievements

• Revised environmental development goals to better examine and manage the Company's environmental impact.
• Implemented energy-saving measures in existing and new projects, increasing the proportion of renewable energy in energy use.
• Reduced energy consumption by 73% in the Shanghai Ocean Seasons project's basement parking lot through IoT Garage Lighting System.
• Achieved 100% compliance with waste disposal regulations for both hazardous and non-hazardous waste.
• Implemented waste sorting and recycling programs.

Social Achievements

• Maintained a customer satisfaction rate of 86%.
• Handled 3,536 customer complaints with a 100% resolution rate and 96% customer satisfaction rate.
• Organized over 140 employee activities.
• Provided training to 7,488 employees (99.63% of total employees) for an average of 15.71 hours.
• Donated approximately RMB 310,000 for charitable purposes.
• Implemented the “Building Management Responsibility System”, assigning a butler to each building for efficient issue resolution.

Governance Achievements

• Further improved 14 risk management systems, including the “Comprehensive Risk Management System” and the “Internal Audit Management System”.
• Established a three-tier quality control system.
• Implemented a robust anti-corruption program, including annual training for all employees and a whistleblowing system.
• Maintained a culture of compliance and implemented measures to identify, assess, and manage risks in business operations.
• Established three Board committees: Audit Committee, Nomination Committee, and Remuneration Committee.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic and its impact on operations.
• Extreme weather events (typhoons, rainstorms, hailstorms).
• Potential increase in operating costs due to new low-carbon policies.

Mitigation Strategies

• Implemented contactless services during the pandemic.
• Established emergency response plans for extreme weather events.
• Implemented off-peak or home office in response to government suggestions during extreme weather.
• Incorporated climate change factors into procurement, encouraging the use of low-carbon materials.
• Encouraged employees, suppliers, and customers to reduce carbon emissions.
• Implemented refined energy management and set energy use targets.

Supply Chain Management

Supplier Audits: 750 suppliers comply with the supplier management system; 20% annual sampling rate for audits.

Responsible Procurement

• Suppliers required to sign a “Commitment to Integrity and Self-discipline”.
• Emphasis on green procurement and consideration of environmental and social risks.
• Regular supplier inspections and performance evaluations.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (typhoons, rainstorms, hailstorms)

Transition Risks

• Increased operating costs due to new low-carbon policies

Opportunities

• Development of energy-efficient products and services

Reporting Standards

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

Certifications: ISO9001

Sustainable Products & Innovation

• IoT Garage Lighting System

Awards & Recognition

• 2021 TOP 100 Property Management Companies in China (Ranked 12th)
• 2021 China Leading Property Management Companies in terms of High-end commercial office building
• 2021 China Specialized Operational Leading Brand of Property Service Companies
• 2021 Excellent Platform Brand of Property Service Companies
• Other awards listed in the report

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Social Responsibility
• Corporate Governance

Environmental Achievements

• Ocean International Center (Beijing) Tower A obtained BOMA BEST International Management System certification (Gold) for energy conservation and emission reduction.
• Ocean Office Park (Beijing) Tower C obtained the BOMA COE certification for environmental management and asset management.
• Achieved a 10-star accreditation rating for garbage sorting service.

Social Achievements

• Launched the first “Friendly Neighbors+” campaign across all residential projects.
• Beijing Yingwei Technology Service Co., Ltd. selected as a member unit of Work Group for Data Security Sector Standards and Work Group for Data Security Sector Personnel Training.
• Selected as a pilot entity under the retirement service scheme of Beijing Municipal Civil Affairs Bureau.
• Published the 2021 annual results with its core profit increasing by 79% YoY.

Governance Achievements

• Established a systematic corporate governance regime, including the Board, Audit Committee, Remuneration Committee, and Nomination Committee.
• Implemented “Measures for the Handling of Staff Violation of Discipline”, “Anti-corruption and Anti-bribery Policy”, and “Whistleblowing Policy”.
• Obtained ISO5001 Energy Management accreditation.

Climate Goals & Targets

Environmental Challenges

• Challenges to the industry’s growth mode and sustainable profitability due to slowed management scale and GFA under management growth rate.
• Pressure from real estate policy expectations, fundamental changes in the property industry, credit issues of enterprises, and receded consumption.
• Significant increase in impairment provision for amounts due from related parties due to the downturn in the overall real estate market in the PRC and the decrease in overall gross profit margin as a result of the continuous COVID-19 pandemic in the PRC.

Mitigation Strategies

• Focused on internal growth, streamlining management, enhancing service quality and professional experience, and prioritizing customer needs and satisfaction.
• Expanded GFA under management and contracted GFA exceeding 100 million sq.m. through quality project acquisitions.
• Explored new operation models, embraced smart services, and prioritized service quality to achieve new heights in customer satisfaction.
• Implemented measures to stabilize the retail environment for tenants in shopping malls, including optimizing sales models and creating new marketing campaigns.
• Strengthened agile leasing strategies, capturing market information and adjusting strategies swiftly.
• Implemented measures to improve the Group’s liquidity and financial position, including closely monitoring the settlement status of receivables, strengthening internal risk control assessment, strengthening internal control procedures, and obtaining additional funding when necessary.
• Obtained a financial support letter from its ultimate holding company, Sino-Ocean Group Holding Limited.

Supply Chain Management

Responsible Procurement

• Sino-Ocean Group Supplier Code of Conduct

Climate-Related Risks & Opportunities

Awards & Recognition

• 2022 TOP100 Property Management Companies of China (Ranked 12th)
• 2022 China Leading Property Management Companies — High-end Properties
• 2022 Outstanding Companies of China in Commercial Property Servicing Competence
• 2022 Outstanding Companies of China in Office Property Servicing Competence
• 2022 Leading Growth Companies in TOP100 Property Service Companies of China
• 2022 Leading Brand in Service Quality in the Property Service Sector of China
• 2022 TOP20 Property Management Companies of China in Comprehensive Strengths
• 2022 TOP20 Listed Property Management Companies of China
• 2022 Leading Property Service Companies of China in Competitive Strengths — Northern China
• 2022 Model Property Service Companies of China (Customer Satisfaction)
• 2022 Leading Property Service Companies of China in Brand Value
• 2022 Outstanding Growth Companies in the Property Service Sector of China
• 2022 Red Properties Benchmark Companies in the Property Service Sector of China
• 2022 Leading Commercial Property Service Companies in the Property Service Sector of China
• 2022 TOP10 Listed Property Management Companies of China in Long-term Investment Value

Environmental Metrics

ESG Focus Areas

• Green property management
• Low-carbon development
• Corporate governance
• Social responsibility
• Talent development

Environmental Achievements

• Reduced energy consumption through energy-saving conversion of water and power supply facilities and upgrading lighting in basement carparks to intelligent radar energy-saving lights.
• Installed solar energy panels at Tianzhu Airport Industrial Park and solar power road lamps at Jinyuyuan, Haiyi Xincheng, Shandong.
• Enhanced waste recycling rate through on-site non-hazardously treatment of kitchen waste.

Social Achievements

• Organized talent development training camps to enhance staff competence.
• Implemented various types of incentive schemes for different levels of employees.
• Undertook social responsibility initiatives such as support for community services and care for the elderly and underprivileged.
• Effectively reduced the number of user complaints.

Governance Achievements

• Established a complete corporate governance regime, including the Board, the Audit Committee, the Remuneration Committee and the Nomination Committee.
• Conducted regular probity education and training to enhance staff awareness of probity.
• Optimised the mechanism for the protection of whistleblowers.

Climate Goals & Targets

Environmental Challenges

• Overall economic situation and real estate market downturn affecting revenue from community living services, property brokerage services, consultancy services, and property engineering services.
• Increase in labor and energy costs.
• Slowdown in the collection of trade receivables.

Mitigation Strategies

• Focusing on optimising the details of service operations and implementing delicacy operation in operational and business details.
• Further identifying scenarios of consumer spending on services and encouraging regional and project offices to customise innovative value-added services.
• Continuing to extend existing advantage in facilities and equipment maintenance.
• Implementing various measures to ensure the timeliness and expedite the recovery of trade and note receivables.
• Strengthening cost control systems and optimising standardised and systematic operation.

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• 2023 TOP100 Property Management Companies of China (Ranked 13th)
• 2023 China Leading Property Management Companies — High-end Properties
• 2023 China Property Management Companies in terms of Characteristic Service — Outstanding Enterprise in Asset Management and Operation
• 2023 China’s Top 20 Property Service Enterprises in Comprehensive Strengths
• 2023 Quality Leading Companies of China in Property Service
• 2023 Top 10 Satisfaction Score in Property Services in China
• 2023 TOP 12 Listed Property Management Companies of China

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Ocean Plaza introduced new kitchen waste equipment to achieve on-site disposal; energy-saving renovation project of introducing reclaimed water into the central air conditioning cooling water system; roads in the Jinhua Platinum Garden project equipped with light control switches; IoT garage lighting AI system in Hangzhou Wangchen Mansion project reduces power consumption.

Social Achievements

• Launched the “Sino-Ocean Little Citizen Growth Paradise Base” with public welfare activities; conducted special events such as “Blossoms in Spring, Fruits in Autumn”, “Production Safety Month” and “Children’s Music Festival”; Wuhan company donated air conditioners to local households.

Governance Achievements

• Improved Nomination Committee Terms of Reference, Audit Committee Terms of Reference, Operational Independence Code and Policy of the Remuneration for the Management; established and implemented internal policies including the “Anti-corruption and Anti-bribery Policy”, “Measures for the Handling of Staff Violation of Discipline”, “Measures for Avoiding Conflict of Interest”, “Measures for Inspection and Examination of Monitored Cases”, “Measures for Whistleblowing and Complaints”, “Whistleblowing Policy”; implemented a Code of Conduct on terms no less exacting than those required standards set out in the Model Code.

Climate Goals & Targets

Environmental Challenges

• Downward trend in real estate, growth of the property management industry slackened, “increased revenue but not profits”, fierce competition and intensified differentiation; sluggish macroeconomic environment and the downturn in the real estate market in the PRC; lengthened the settlement cycle of relevant businesses and in turn led to an increase in the provision for trade and other receivables.

Mitigation Strategies

• Adjusted strategies, returned to the origin of service and focused on users’ experience; actively disposed of low-efficiency projects for quality enhancement; improved business structure, raised project efficiency, probed expansion potential in sub-sectors; improved the efficiency of the Group’s asset disposal, and improved our operating cash flow performance; continued to strengthen the expansion direction of diversified business, strengthened the expansion of public buildings, industrial parks, hospitals, schools and other business; strictly controlled the standards of expansion to ensure the collection capacity and operating profit of third parties projects.

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• 2024 China Property ESG Sustainable Development Leading Enterprise
• 2024 China Property Low-Carbon Operation Leading Enterprise
• 2024 TOP100 Property Management Companies in China
• 2024 China Leading Property Management Companies in terms of Customer Satisfaction
• 2024 China Model Property Management Companies in terms of Characteristic Property Samples — High-end Office Buildings