Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Social responsibility
• Corporate governance

Environmental Achievements

• Using LED lighting in the Huizhou factory
• Adopting heat recovery system to recover residual heat from air compressor to heat water supply in dormitory
• Encouraging video and phone conferences to minimize carbon footprint from business travel
• Renewed ISO14064 Greenhouse Gas verification from UL
• Obtained ISO14001 Environmental Management Systems certification

Social Achievements

• Provided financial support to 3 employees needing urgent medical support
• Offered Employee Children Scholarship Program
• Recognized as “Happy Company” by the Hong Kong Productivity Council and the Promoting Happiness Index Foundation
• Granted “Good MPF Employer” certificate by the Mandatory Provident Fund Schemes Authority
• Offered special leave after COVID-19 vaccination
• Organized “Employee Sports Day” and health workshops
• Participated in community sports games

Governance Achievements

• Complied with all applicable code provisions set out in the CG Code
• Complied with the Model Code for Securities Transactions by Directors
• Established three Board committees (Audit, Remuneration, Nomination)

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impact on business operations, including supply chain disruptions and increased transportation costs
• Significant increase in copper price, diluting gross profit margin
• Increase in other costs (PVC, packing materials, labor)
• Government restrictions on energy consumption

Mitigation Strategies

• Took effective measures to minimize COVID-19 impact
• Adjusted selling prices to customers in May 2021 and May 2022
• Minimized energy consumption impact by using standby power generators
• Regularly reviewing business and making strategic deployments to cope with economic changes

Supply Chain Management

Supplier Audits: Regular assessments on suppliers’ capabilities, financial position, business nature, reputation, product quality, delivery, and compliance

Responsible Procurement

• Comprehensive screening and evaluation procedures
• Field visits and investigations
• Suppliers required to sign agreements covering integrity, confidentiality, quality, and environmental protection

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather (typhoon, torrential rain, sandstorm)
• High temperature
• Drought
• Power and water shortage
• Damage to production plants, equipment, and inventories

Transition Risks

• Government policies and regulations
• Changes in customer preferences

Reporting Standards

Frameworks Used: Stock Exchange’s Environmental, Social and Governance Reporting Guide

Certifications: ISO14001, ISO14064, ISO9001, IATF16949, ISO13485

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 4: Quality Education
• Goal 8: Decent Work and Economic Growth
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action
• Goal 17: Partnerships for the goals

The Group's initiatives contribute to these goals through various programs and policies related to employee well-being, education, employment opportunities, resource management, emissions reduction, and community partnerships.

Awards & Recognition

• 15 Years+ Caring Company
• Good MPF Employer
• Happy Company
• 3+ Year Industry Cares Award

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Social responsibility
• Corporate governance
• Product safety and quality management
• Occupational health and safety
• Data security and confidentiality
• Human rights
• Waste and hazardous material management
• Ethical business practices

Environmental Achievements

• Installed a new rainwater collection system in Linkz Suzhou, collecting and reusing 46 tons of rainwater in nine months.
• Installed frequency conversion air compressors to reduce electricity consumption.
• Upgraded machinery and equipment to improve energy efficiency.
• Successfully accredited the ISO14064 Greenhouse Gas verification.
• Obtained the certification of ISO14001 Environmental Management Systems.

Social Achievements

• Organized home visits to financially disadvantaged employees and distributed blessing bags.
• Organized various sports games in PRC production facilities to promote a healthy culture.
• Organized workshops and webinars on stress relief, mental health, and financial well-being at headquarters.
• Received recognition as a “Happy Company 10 Years+” and “Good MPF Employer 5 Years+”.

Governance Achievements

• Complied with all applicable code provisions set out in the Corporate Governance Code.
• Established a whistleblowing policy and system.
• Adopted a corruption prevention policy.
• Implemented a rigorous and systematic measures for recruitment and selection to prevent illegally hiring child labour.

Climate Goals & Targets

Environmental Challenges

• Slower than expected global economic recovery from the COVID-19 epidemic and the Russia-Ukraine conflict.
• High inflation eroding household purchasing power.
• High borrowing problems in China's real estate industry.
• Fluctuations in copper prices.
• RMB depreciation.
• Decreased overseas orders for networking cables.
• Potential risks of climate change such as extreme weather, high temperature, and power and water shortage.

Mitigation Strategies

• Actively seeking potential investment opportunities to diversify the Group’s business portfolio.
• Expanding business to server business.
• Setting up a new wholly-owned subsidiary, Linkz Mexico, to increase market share outside China and Asia.
• Establishing two wholly-owned subsidiaries, Time Kunshan and Time Jiangxi, to expand production capacity and R&D capabilities for medical equipment cables.
• Implementing environmental friendly measures to reduce NOx, SOx, and PM emissions.
• Adopting policies and procedures on energy saving.
• Implementing various environmental and sustainability initiatives in factories and offices.
• Formulating emergency response plans for natural disasters.
• Applying more energy efficient cooling equipment and measures.
• Providing periodic health check to labour.
• Upgrading equipment that can operate under high temperature.
• Maintaining comprehensive insurance coverage on assets.
• Performing periodic equipment inspection and maintenance.
• Implementing stringent and comprehensive quality control procedures.
• Developing guidelines to set out procedures for product recall and prevent misuse of defective product.
• Adopting a “Responsible Conflict Minerals Sourcing Policy”.

Supply Chain Management

Supplier Audits: Regular assessment on suppliers’ overall capabilities.

Responsible Procurement

• Comprehensive screening and evaluation procedures on quality and price.
• Field visits and investigations to ensure suppliers’ capability in quality assurance, safety and environmental responsibility.
• Requiring suppliers to sign agreements covering integrity, confidentiality, quality and environmental protection.
• Adopting “Responsible Conflict Minerals Sourcing Policy”.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather (typhoon, torrential rain, sandstorm)
• High temperature
• Drought
• Storms, floods, fires, landslides

Transition Risks

• Stringent government policies and regulations to mitigate climate change.
• Changes in customer preferences due to climate-related concerns.

Reporting Standards

Frameworks Used: Stock Exchange ESG Reporting Guide

Certifications: ISO14001, ISO14064, ISO9001, IATF16949, ISO13485

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 4: Quality Education
• Goal 8: Decent Work and Economic Growth
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action
• Goal 17: Partnerships for the goals

The Group's initiatives contribute to these goals through various programs and policies.

Awards & Recognition

• 15 Years+ Caring Company logo
• Good MPF Employer 5 Years+
• Happy Company
• Industry Cares Award
• Industry Cares 5+ Years Award
• Mental Health Friendly Supreme Organisation
• ESG Pledge Scheme