Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Clean energy
• Urbanisation

Environmental Achievements

• Started natural gas business in 2015, replacing high-polluting coal with clean energy; implemented "coal-to-gas" project to reduce exhaust emissions.
• All guest rooms in Wuhan hotel have energy-saving switches; offices encourage reduced paper and energy usage; installed energy-saving appliances and equipment (LED lights, solar energy systems) in some LNG plants and offices; issued energy-saving notices to residents and guests in managed properties and hotels; stopped using environmentally unfriendly materials in hotel operations (replaced plastic with recycled paper).

Social Achievements

• Provides a safe and pleasant working environment; adopts human resources policies under the principle of transparency and fairness with equal opportunities for all; provides statutory benefits to all qualified employees (including mandatory provident fund and medical and injury insurance in Hong Kong, social and medical insurance and unemployment fund in China); organized regular emergency safety demonstrations at LNG plants; sponsored employees to attend job-related training programs; complied with all employment, safety, and health laws and regulations; no labor disputes or major casualties or injuries reported; did not employ child labor or forced labor; continuously improving supply chain management; established detailed purchase and sales control policies and processes to minimize bribery and corruption acts; no bribery, corruption, or malpractice charges recorded in 2016; encourages and supports employees to provide voluntary services to the community.

Governance Achievements

• Maintains good corporate governance standards and procedures; reviews corporate governance system to meet rising expectations of shareholders and comply with regulatory requirements; established an audit committee, a remuneration committee, and a nomination committee; adopted the Model Code for Securities Transactions by Directors of Listed Issuers.

Climate Goals & Targets

Environmental Challenges

• Slow global economic recovery and slowdown in China's economic growth; downward pressure on property business; uncertain factors and complex domestic and international economic environment due to China’s deepening economic reform and international oil prices.

Mitigation Strategies

• Strengthening management and phasing out property-related businesses; adjusting progress and planning depending on market changes and market value of the property portfolio; developing natural gas business prudently based on domestic and foreign economic and investment opportunities; maintaining prudent financial management, a sound balance sheet, and financial position; optimizing capital structure and business portfolio; capturing investment opportunities.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Established purchase and sales control policies and processes to minimize bribery and corruption acts.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Environmental, Social and Governance Reporting Guide

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

• In Wuhan hotel, all guest rooms have room card insert energy saving switches to reduce energy waste. The Group encourages the reduction in paper and energy usage in offices.
• Invested in fresh water and energy saving tools and equipment such as the installation of water meters, LED lights and solar energy systems to reduce unnecessary resources consumption.

Social Achievements

• Provides a safe and pleasant working environment to our employees; Adopts humanistic and responsible human resources policies with equal opportunities for all without discrimination; Instructs all the subsidiaries to strictly comply with the local employment laws, rules and regulations.
• Provided internally designed training programs to 80 employees, totaling 230 hours.

Governance Achievements

• The Board reviews its corporate governance system from time to time in order to meet the rising expectations of shareholders and comply with the increasingly tightened regulatory requirements.
• Established an audit committee, a remuneration committee and a nomination committee.

Climate Goals & Targets

Environmental Challenges

• Continuing trade disputes between the United States and China and the regulation of real estate market in China affected the market in general.
• Decrease in revenue from sales of properties, in which the total GFA recognised during the year was 14,494 sq.m., representing a decrease of 58.9%, compared with the total GFA of 35,233 sq.m. recognised in last year.

Mitigation Strategies

• The Group is optimistic about the outlook of the real estate industry’s development of Mainland China. More quality land and properties will be acquired through mergers and acquisitions, co-operation and other approaches, with the aim of propelling the growth of the Group’s business.
• The Group continues to optimize its capital structure and business portfolio and narrow the loss. In the second half of 2018, the Group sold a real estate development project in Qiandao Lake, Hangzhou.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• select suppliers based on a set of criteria, which includes (i) ability to meet specification and standards, (ii) products and services quality; (iii) pricing of the products and services; (iv) reliable delivery times; and (v) track records of the suppliers’ business relationships with us and others in the industry and their committed compliance to laws, rules and regulations.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

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

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced GHG of CO2 emissions from its offices and the managed properties, shopping malls and hotels from the use of electricity by 479 tonnes/10.0% less than 2018. In 2019, the property investment sector in Hubei emitted 1,101 tonnes of GHG of CO2, while there was only an insignificant amount of GHG of CO2 emission in 2018. If we deduct this, the overall GHG of CO2 emission in 2019 was 3,191 tonnes, or 1,580 tonnes/33.1% less than 2018. If we just consider the Hong Kong office, GHG of CO2 emission was 9.65 tonnes in 2019, which was 15.87 tonnes or 62.18% less than 2018.

Social Achievements

• Provided internally designed training programs to 80 employees in hotel management offices in China, totaling 227 hours (approximately 3 hours per employee).
• Provided on-the-job orientation and refreshing training programs to employees in property and shopping malls’ management offices 21 times in 2019.

Governance Achievements

• Resigned Li Chao Bo as CEO and appointed Ye Tianfang as CEO to separate the roles of Chairman and CEO.

Climate Goals & Targets

Environmental Challenges

• The outbreak of new coronavirus pneumonia (COVID-19) across the PRC in the beginning of 2020 challenged the Group’s hotel business and real estate business. It is expected that business environment will remain weak in the short term. The outbreak is expected to have an adverse impact to the Group in 2020. If the outbreak remains protracted, the world’s economy may be adversely affected and the Group’s operating environment will become increasingly challenging.

Mitigation Strategies

• The PRC government has continued to implement large-scale emergency measures to mitigate the negative effects of COVID-19.
• The Group continues to closely monitor the development of the pandemic and takes all possible and reasonable measures to mitigate the effect on the Group’s operations.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Select suppliers based on criteria including ability to meet specification and standards, products and services quality; pricing; reliable delivery times; and historical record of compliance to laws.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

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

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced CO2 emissions by 1,198 tonnes (27.91%) from 2019

Social Achievements

• Maintained compliance with all employment laws and regulations in PRC and Hong Kong, with no disputes or violations.
• Maintained a record of zero work-related serious fatalities or injuries.

Governance Achievements

• Maintained compliance with the CG Code (with minor deviations noted in the report), ensuring transparency and accountability.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic significantly impacted the Group's real estate and hotel businesses in the first half of 2020.
• Decrease in rental income from property leasing, hotel business, and property management business.

Mitigation Strategies

• Provided rent concessions to certain tenants to ease their financial burden during the pandemic.
• Optimized capital structure and business portfolio, including the disposal of a company holding properties in Hangzhou.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Select suppliers based on criteria including ability to meet specifications, quality, pricing, delivery times, and compliance with laws and regulations.
• Assess suppliers’ track records on environmental maintenance and performance.
• Procured all raw materials and accessories from local suppliers in China.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

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

ESG Focus Areas

• Emissions and Wastes
• Use of Resources
• Employment and Labor Practices
• Health and Safety
• Development and Training
• Labor Standards
• Supply Chain Management
• Product Responsibility
• Privacy
• Anti-corruption
• Community Investment
• Climate Change

Environmental Achievements

• Reduced energy consumption by implementing various environmentally friendly measures (e.g., room card insert energy saving switches in Wuhan hotel, encouraging paper and energy reduction in offices).

Social Achievements

• Maintained zero work-related fatalities and zero lost days due to work-related injuries for three years, including 2021.
• Provided comprehensive remuneration and employee benefits packages.
• Offered internal and on-the-job training programs to employees.
• Supported employee participation in charitable activities and community services.

Governance Achievements

• Integrated ESG management system to improve board-level oversight.
• Established an audit committee, a remuneration committee, and a nomination committee.
• Complied with the applicable code provisions of the Corporate Governance Code (with some deviations).

Climate Goals & Targets

Environmental Challenges

• Downward adjustment in the real estate industry due to the impact of the COVID-19 epidemic and defaults by some large property developers.
• Suspension of Future City Hotel operation since January 2022 due to the COVID-19 pandemic.

Mitigation Strategies

• Adopted a series of expenditure control measures to reduce operating costs.
• Optimised capital structure and business portfolio to improve financial position.
• Actively looked for potential projects compatible with the Group’s principal activities.
• Implemented prevention and control policies and flexible work-from-home practices to mitigate the impact of the COVID-19 pandemic.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Select suppliers based on criteria including ability to meet specifications, product quality, pricing, reliable delivery, and compliance with laws and regulations.
• Assess suppliers’ track records on environmental maintenance and performance.
• Procured all raw materials and accessories from local suppliers in China.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: HKEx Appendix 27 ESG Reporting Guide

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

• Emissions
• Use of Resources
• Environment and Natural Resources
• Climate Change
• Employment
• Health and Safety
• Development and Training
• Labour Standards
• Supply Chain Management
• Product Responsibility
• Anti-corruption
• Community Investment

Environmental Achievements

• Reduced paper usage by 69.23% in Hong Kong Office from 2022 to 2023.
• Implemented various environmentally friendly measures to minimize adverse impacts on the environment (e.g., regular inspections, reduced business trips, encouraged public transport, invested in energy-saving equipment, implemented waste classification system).

Social Achievements

• Maintained compliance with all employment laws and regulations in PRC and Hong Kong.
• Achieved zero work-related fatalities and zero lost days due to work-related injuries in the past three years.
• Provided internal and on-the-job training programs to employees.
• Supported employees in continuing their learning and enhancing job skills.
• Engaged 15 major suppliers, prioritizing local suppliers to support the local community.

Governance Achievements

• Established an audit committee, a remuneration committee, and a nomination committee.
• Complied with the applicable code provisions of the Corporate Governance Code (CG Code), except for certain deviations which are explained in the report.
• Adopted a board diversity policy.
• Implemented a whistleblowing policy and an anti-corruption policy.

Climate Goals & Targets

Environmental Challenges

• Challenging business environment in China's real estate industry due to global risks and economic uncertainties.
• Decrease in revenue from property development, property investment, and property management business.

Mitigation Strategies

• Prudent investment in real estate business.
• Reduction of operating expenses.
• Optimization of capital structure and business portfolio.
• Actively seeking potential development opportunities in real estate and infrastructure business.
• Implementing various environmentally friendly measures to minimize environmental impact and reduce operational costs.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Selection criteria based on quality, pricing, delivery, and compliance with laws and regulations.
• Assessment of suppliers' environmental performance.
• Prioritising local suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Hong Kong Stock Exchange Environmental, Social and Governance Reporting Guide

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed