Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Improved energy efficiency of operations by supporting the “Indoor Temperature Energy Saving Charter” and the “No Incandescent Light Bulbs (“ILB”) Energy Saving Charter”, setting indoor air temperature at a comfortable range and deactivating all incandescent light bulbs.
• Planting trees to reduce overall carbon emissions in coming years.

Social Achievements

• Maintained a professional team of employees; prepared policies relating to periodic evaluation and compensation increases; provided employee benefits such as medical insurance and provident fund scheme; provided a workplace free from discrimination and harassment; complied with all relevant labor laws and regulations.
• Established an emergency management plan for workplace accidents; maintained a good record of zero product recall.

Governance Achievements

• Maintained a high standard of business integrity and tolerated no corruption or bribery; established clear channels for reporting suspected business irregularities; complied with relevant laws and regulations.

Climate Goals & Targets

Environmental Challenges

• Slowdown of economy in the PRC and the pace of US Federal Fund Rate-hike cycle clouded the worldwide economic outlook with uncertainty.
• Angola landscaping project deferred due to President Jose Eduardo Dos Santos stepping down and crude oil fluctuation leading to economic instability and increasing pressure on foreign direct investment.

Mitigation Strategies

• Reviewing existing business strategies to formulate business plans for future development; exploring asset acquisition/disposal, fund raising activity, and business diversification to further diversify the Group’s portfolio and maximize future returns for shareholders.
• Continuously striving to create value for shareholders; seeking other business opportunities and acquiring high-quality investment projects with good potential to enhance investment return.

Supply Chain Management

Responsible Procurement

• Strict tendering process considering supplier qualification, past performance, and price; list of approved suppliers, sub-contractors, and service providers maintained.

Climate-Related Risks & Opportunities

Reporting Standards

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

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Implemented energy-saving measures such as increased use of natural light, LED lighting, high-efficiency motors, and reduced paper consumption.
• Implemented water conservation measures such as drip irrigation and rainwater use in planting operations.

Social Achievements

• Maintained a respectful and fair working environment.
• Complied with all relevant occupational health and safety regulations.
• Provided competitive remuneration, promotional opportunities, and benefits to attract and retain talent.
• Conducted comprehensive fire and emergency drills.

Governance Achievements

• Maintained a high standard of corporate governance.
• Complied with the Corporate Governance Code.
• Established three committees: Audit Committee, Remuneration Committee, and Nomination Committee.

Climate Goals & Targets

Environmental Challenges

• Political instability and crude oil price fluctuations in Angola hampered the landscaping project.
• Uncertain global economic outlook due to the US Federal Fund Rate-hike Cycle.

Mitigation Strategies

• Disposal of the Angola landscaping project to redirect resources to existing projects and better opportunities.
• Reviewing existing business strategies to formulate business plans for future development.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Fair and open procurement principles.
• Encouraging suppliers to promote resource efficiency and environmental protection.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

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

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Implemented energy-saving measures such as using natural light, LED lighting, high-efficiency motors, and reducing paper consumption.
• Reduced greenhouse gas emissions from 655.31 tonnes of CO2 to 13.49 tonnes of CO2 (net of removals).

Social Achievements

• Maintained a respectful and fair working environment.
• Complied with all relevant occupational health and safety regulations.
• Provided competitive remuneration and benefits packages.
• Conducted regular fire and emergency drills.

Governance Achievements

• Maintained a high standard of corporate governance.
• Complied with the Corporate Governance Code.
• Established three committees: Audit, Remuneration, and Nomination.

Climate Goals & Targets

Environmental Challenges

• Macroeconomic risks and Sino-US trade tensions dampened investment confidence.
• Property market downturn in Leshan City, Sichuan Province.
• Deferred new projects in Angola due to political changes.

Mitigation Strategies

• Actively seeking new business and investment opportunities to diversify activities.
• Expecting to commence selling and leasing of residential and car park areas when the property market revives.
• Negotiated the disposal of 51% equity interest in Best Sky Holdings Limited.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Fair and open procurement principles.
• Encouraging suppliers to promote resource efficiency and environmental protection.

Climate-Related Risks & Opportunities

Physical Risks

• Forest fires, diseases, and other natural forces.

Transition Risks

• Fluctuations in market prices of forestry products.

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: ESG Guide (Appendix 27 of the GEM Listing Rules)

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Installed energy-efficient LED light tubes in the Group office to reduce energy consumption
• Operating a high-efficiency motor unit when replacing the machine
• Turning off lights and unnecessary energy-consuming devices when employees leave to reduce energy
• Maintaining the temperature of the air-conditioner at a suitable level, cleaning the air-conditioner and ventilation equipment regularly to conserve power
• Creating a “paperless” office by encouraging the use of electronic documents, double-sided printing and recycling paper to reduce paper printing and consumption
• Promoting the use of telephone or video conferencing system for Directors’ and employees’ communication to decrease the frequency of business trips
• Adopted a drip irrigation system to achieve water conservation by reducing evaporation and deep drainage
• Using rainwater in the planting operation

Social Achievements

• Enhanced staff medical benefits
• Implemented established policies and guidelines for different working conditions and needs which stipulates clearly the safety procedures as well as emergency response plans
• Conducted a comprehensive fire drill and emergency drill regularly
• Offered various facilities in the office to address the health and safety needs of our employees

Governance Achievements

• Maintaining a high standard of corporate governance
• Established three committees in accordance with the CG Code, namely the Audit Committee, the Remuneration Committee and the Nomination Committee

Climate Goals & Targets

Environmental Challenges

• Rising geopolitical tension with trade disputes between the PRC and the USA
• A price war over oil production
• Social unrest in Hong Kong
• COVID-19 pandemic causing systemic disruptions to almost every industry, severely impacting offline business
• Lockdown, quarantine and global supply chain disruptions
• Supply chain constraints, lack of site access and shortage of labour in agricultural activities
• Countries’ lockdown and border closure impacting farmers’ access to input
• Closure of businesses reducing the market space for agricultural products
• Restrictions on travel and people movement impacting consumers’ demand
• Slowdown in China property developers amid the macroeconomic slowdown

Mitigation Strategies

• Strengthening and consolidating existing business segments
• Finding new opportunities leveraging fundamentals to develop innovative products and services to broaden income sources
• Consolidating its position in the intelligent advertising business segment
• Leveraging technical platforms in Big Data and AI
• Investigating innovative applications of technologies into untapped market segments
• Focusing on industrial goods with stable and growing demands instead of volatile non-essential consumer goods and services
• Being rigorous in the selection of product portfolio and the range of industries served
• Rolling out measures to inject liquidity to ease the monetary market and support the economy
• Seeking new technology investment opportunities around the world and starting to examine the development of its own products
• Offering innovative high-tech products through acquisition of promising intellectual property and in-house development capabilities
• Maintaining a high standard for supply-chain risk management, closely observing industries of interest to seize potential investment opportunities
• Leveraging its supply chain network to find new growth channels
• Formulating corresponding mitigation measures promptly when discovering any potential risk to the environment

Supply Chain Management

Supplier Audits: Regular assessments of the environmental and social performance of suppliers

Responsible Procurement

• Fair and open principle on procurement of materials and services
• Supporting and encouraging suppliers to promote efficient use of resources and environmental protection and fulfill corporate social responsibility

Climate-Related Risks & Opportunities

Physical Risks

• Floods, droughts, cyclones and windstorms
• Earthquakes, fire, disease, insect infestation and pests

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: ESG Guide (Appendix 20 of GEM Listing Rules)

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Shenzhen Zhixunpai was recognized by Tencent advertisements as a leading service provider and nominated as “Outstanding industry channel service provider”

Environmental Metrics

ESG Focus Areas

• Ethics and Integrity
• Environmental Impact (Carbon Emission Reduction)
• Community Engagement and Sustainable Practices

Environmental Achievements

• Started studying and targeting full decarbonization of operations; Improved energy efficiency (LED lights, turning off unnecessary lights); Set a target to save at least 10% of paper consumption in two years; Focused on waste reduction (reusable cups).

Social Achievements

• Reviewed and updated existing remuneration policies (whistleblowing, grievance, anti-discrimination); Maintained proper systems to ensure equity and competitiveness of staff remuneration; Encouraged open dialogue between Senior Management and staff; Offered competitive remuneration, promotional opportunities, and benefits to attract and retain talents; Strictly complied with applicable laws and regulations regarding employment and labor practices; Provided employees with effective training and a clear promotion ladder; Conducted annual performance evaluations and offered job development opportunities; Encouraged employees to attend professional training; Implemented established policies and guidelines for occupational safety; Conducted regular fire and emergency drills; Maintained a zero-tolerance position on bribery and corruption; Required all employees to review the Code of Conduct annually.

Governance Achievements

• Maintained a high standard of corporate governance; Enhanced transparency in disclosure of material information; Complied with the requirements of the Corporate Governance Code; Implemented a board diversity policy; Adopted a nomination policy; Established three committees (Audit, Remuneration, Nomination).

Climate Goals & Targets

Environmental Challenges

• Weak economic outlook; Ongoing trade disputes, political uncertainties, and global pandemic impact; Decrease in turnover (49.8%); Increase in loss attributable to owners (41.6%); Sluggish consumer demand affecting agricultural and forestry products; Unfavorable market conditions impacting property value; Global lack of appetite for Chinese manufacturing; COVID-19 pandemic disrupting travel and tourism.

Mitigation Strategies

• Pursuing new markets; Implementing cost-saving measures; Seeking investment opportunities in innovative technologies; Leveraging supply chain network and media resources to expand into promising market segments; Diversifying applications of Big Data and AI platforms; Exploring investment opportunities in Chinese medicine; Actively seeking suitable investment opportunities in related sectors; Developing rural characteristic tourism products; Looking for stable and high-demand products; Implementing stringent cost control; Obtaining financial support from substantial shareholders; Obtaining consent from lenders not to demand immediate repayment; Issuing convertible notes; Taking active measures to collect receivables; Implementing environmental policies and procedures; Regularly inspecting for unauthorized activities or illegal logging; Cooperating with local government on pest control and fire prevention; Managing risks related to plantations (regulatory, environmental, supply and demand, climate, price).

Supply Chain Management

Supplier Audits: Regular assessments of environmental and social performance of suppliers.

Responsible Procurement

• Formulated supplier assessment systems; Setting the same standards for suppliers as the Group; Terminating cooperation with suppliers violating labor regulations.

Climate-Related Risks & Opportunities

Physical Risks

• Forest fires; Diseases; Other natural forces; Climatic changes.

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Unfavorable market conditions in China's real estate sector impacting revenue from intelligent advertising business.
• Decline in global demand for Chinese manufacturing affecting supply-chain business.
• Sluggish consumer demand impacting agricultural and forestry products business.
• Ongoing challenges and uncertainties in China's real estate market affecting property business.
• Disruptions to supply chain operations due to geopolitical conflicts, inflationary pressures, recessionary environment and climate change weather events.

Mitigation Strategies

• Diversifying applications of proprietary Big Data and AI technological platforms to explore new growth opportunities in investment decision-making and AI-driven digital marketing.
• Exploring potential applications and opportunities in the short video and social media industry.
• Seeking investment opportunities in the Chinese medicine sector and NEV (New Energy Vehicles) industry.
• Actively monitoring various industries to identify potential investment opportunities to diversify the Group’s product portfolio and expand its sources of income.
• Establishing international trading channels for car trading business and seeking to further expand this venture.
• Actively seeking opportunities to sell the property once market conditions improve.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather conditions (e.g., floods, droughts, cyclones, and windstorms) and natural disasters (e.g., earthquakes, fire, disease, insect infestation, and pests) may diminish the supply of plants available for harvesting, or otherwise impede the logging operations or the growth of plants.

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Unfavorable market conditions and a decline in global demand for Chinese manufacturing.
• Challenges faced by the China real estate market, many players are experiencing cashflow difficulties and significant reductions in their advertising budgets.
• Decline in demand for agricultural and forestry products due to sluggish consumer demand during an economic downturn.
• China real estate market still faces ongoing challenges and uncertainties. The housing sector is experiencing declines in prices, sales and investment.

Mitigation Strategies

• Actively monitoring various industries to identify potential investment opportunities to diversify the Group’s product portfolio and expand its sources of income.
• Focus is on diversifying the applications of its proprietary Big Data and AI technological platforms. Actively exploring new growth opportunities by harnessing the powerful data processing capabilities of its AI system.
• Actively exploring investment opportunities in the Chinese medicine sector to tap into the mass market consumption of traditional Chinese medicine and unlock additional growth potential for the Group.
• Actively seeking opportunities to sell the property once market conditions improve.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather conditions (e.g. floods, droughts, cyclones and windstorms) and natural disasters (e.g. earthquakes, fire, disease, insect infestation and pests)

Environmental Metrics

ESG Focus Areas

• Climate change
• Diversity
• Governance

Environmental Achievements

• Reduced paper waste disposed at landfills to 0.0419 tonnes (2023: 0.0756 tonnes)
• Reduced carbon emissions from travelling

Social Achievements

• Increased total number of employees by 53.8%
• Implemented whistle blowing policy
• Invest in employees’ physical, mental and financial wellness

Governance Achievements

• Strengthened anti-bribery and anti-corruption, whistleblowing, data and privacy protection policies and procedures
• Directors received refreshed training periodically on climate-related matters

Climate Goals & Targets

Environmental Challenges

• Adverse sales property market impacting media advertisement business
• Cash flow difficulties due to challenges in the China real estate market
• Sluggish consumer spending affecting demand for agricultural and forestry products
• Global decline in demand for Chinese manufacturing
• Unfavorable market conditions decreasing property value

Mitigation Strategies

• Diversifying applications of Big Data and AI platforms
• Exploring new growth opportunities in investment decision-making and AI-driven digital marketing
• Exploring investment opportunities in the Chinese medicine sector
• Actively monitoring potential investment opportunities to diversify product portfolio and expand income sources
• Expanding international trading lines for car trading business
• Exploring opportunities in high-tech ventures such as blockchain and Web 3.0
• Actively seeking opportunities to sell the property

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather conditions, natural disasters

Transition Risks

• Stringent regulations to restrict embodied carbon