Climate Change Data

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Concentrated customer base
• Dependence on key management personnel
• Potential for defective equipment
• Subcontractor non-performance
• Logistics delays
• Net current liabilities
• Vulnerability to natural disasters
• Credit risks
• Competition
• Small market size
• Potential defective titles of leased properties
• Non-registration of leases
• Inadequate social insurance and housing provident fund contributions
• Intellectual property infringement
• Natural disasters and epidemics
• Foreign currency fluctuations

Mitigation Strategies

• Diversification strategies (corporate events, exhibitions)
• Employee retention initiatives
• Stringent supplier selection and quality control
• Improved subcontractor management
• Goods-in-transit insurance
• Share Offer to reduce debt
• Insurance policies
• Business expansion in Shanghai
• Internal control and risk management policies
• Compliance with PRC regulations
• Stringent quality control policies
• Internal control measures to prevent anti-competitive conduct

Supply Chain Management

Responsible Procurement

• Supplier selection based on quality, track record, scale, lead time, and cost

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Social
• Governance

Environmental Achievements

• Company will purchase an electric vehicle with zero emissions in the year ending 31 May 2018 for transportation of staffs and customers.
• Implemented energy saving, water saving, waste management, and air quality management initiatives to minimize resource use and reduce emissions.

Social Achievements

• Made in-kind food donation to charitable organisations Food Angel by Bo Charity Foundation during the year ended 31 May 2017.
• The Group attaches great importance to the basic rights and interests of the employees, the entering into of employment contracts with all employees, and the provision of relevant social insurances, employees compensation insurance and medical insurance to all employees.
• The Group is an equal opportunities employer, committed to eliminating gender, age, race, disability and religious discrimination in employment and emphasising on the performance and experience of the staffs in promotion or recruitment.

Governance Achievements

• Established an Audit Committee, Remuneration Committee, and Nomination Committee.
• Company has strict guidelines for directors and senior management for any disclosure of conflict of interest. Besides, directors or senior management are required to take certain hours of training each year.

Climate Goals & Targets

Environmental Challenges

• Sensitivity to government policies; keeping up with new technologies and customers’ taste; market competition risk, reputation risk
• Insufficient labour supply; workplace injury; disruption of IT system
• Liquidity risk, credit risk, interest rate risk, foreign exchange risk, inflation risk
• Risk related to occupation safety and health; risk of non-compliance with ordinances related to employment; change of listing rules and relevant company regulations and ordinances

Mitigation Strategies

• The Board is ultimately responsible for the risk management of the Group and it has delegated to executive management to carry out the risk identification and monitoring procedures.
• The risk management process of the Group will involve, among others, (i) an annual risk identification and analysis exercise which involves assessment of the consequence and likelihood of risks and the development of risk management plans for mitigating such risks; and (ii) an annual review of the implementation of the risk management plans and fine tuning of the implementation plan when necessary.

Supply Chain Management

Supplier Audits: Annual supplier evaluation will be conducted by management.

Responsible Procurement

• All parts suppliers of electronic equipment must comply with national or international safety standard.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Appendix 20 to the GEM Listing Rules

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Employee Well-being
• Community Investment

Environmental Achievements

• Implemented measures to reduce greenhouse gas emissions
• Purchased an electric vehicle for staff and customer transportation

Social Achievements

• Maintained harmonious working atmosphere
• Provided various benefits and career development opportunities for employees
• Made in-kind sponsorship to LoveXpress Foundation Limited

Governance Achievements

• Established three board committees: Audit, Remuneration, and Nomination
• Complied with the GEM Listing Rules and CG Code (except for deviation from code provision A.2.1)

Climate Goals & Targets

Environmental Challenges

• Sensitivity to government policies
• Keeping up with new technologies and customer tastes
• Market competition risk
• Reputation risk
• Insufficient labor supply
• Workplace injury
• Disruption of IT system
• Liquidity risk
• Credit risk
• Interest rate risk
• Foreign exchange risk
• Inflation risk
• Risk related to occupational safety and health
• Risk of non-compliance with ordinances related to employment
• Change of listing rules and relevant company regulations and ordinances

Mitigation Strategies

• Regularly manages financial risks
• Installed appropriate anti-virus software and internet firewalls
• Provided security code setting procedures training to staff
• Provided training to executive directors and key management for data security
• Implemented multiple measures in enhancing energy efficiency, minimizing the use of paper, reducing water and energy consumption and driving behavioral changes of employees
• Regularly checks and repairs company vehicles to enhance fuel efficiency and reduce exhaust emission
• Encourages employees to use public transport
• Regularly cleans air conditioners and conducts weekly office housekeeping
• Opens office windows to induce fresh air
• Distributes stationaries on a needed basis and employs reusable stationaries
• Promotes paperless working environment
• Encourages use of recycled papers
• Recycles used ink cartridges
• Encourages mutual respect among employees
• Strictly complies with relevant laws and regulations in employment process
• Provides relevant social insurances, employees compensation insurance and medical insurance to all employees
• Emphasizes on the performance and experience of the staffs in promotion or recruitment
• Conducts annual staff appraisal
• Provides a healthy and safe workplace
• Adopts appropriate occupational and health manuals
• Conducts risk assessments of workstations
• Locates first aid kits at convenient locations
• Displays workplace safety posters
• Provides supervision for newcomers/subordinates
• Has a zero-tolerance policy towards the employment of forced labour and child labour
• Checks goods from suppliers for product quality and safety
• Requires all parts suppliers of electronic equipment to comply with national or international safety standard
• Eliminates suppliers who fail to maintain safety standards
• Conducts annual supplier evaluation
• Commits to supply goods and services that meet customer expectations
• Provides effective mechanism to lodge complaints
• Respects customer confidentiality
• Refuses bribery, corruption, extortion and money laundering activities
• Has strict guidelines for directors and senior management for any disclosure of conflict of interest
• Requires directors or senior management to take certain hours of training each year

Supply Chain Management

Supplier Audits: Annual

Responsible Procurement

• Checks goods from suppliers for product quality and safety
• Requires all parts suppliers of electronic equipment to comply with national or international safety standard
• Eliminates suppliers who fail to maintain safety standards

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Appendix 20 to 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 Protection
• Social
• Governance

Environmental Achievements

• Implemented measures to reduce greenhouse gas emissions
• Encouraged employees to use electronic communication to reduce business trips

Social Achievements

• Safeguarding the legitimate rights and interests of employees
• Maintaining employees’ physical and mental health
• Providing various benefits and career development opportunities

Governance Achievements

• Established and maintained high standards of corporate governance
• Established three committees: Audit Committee, Remuneration Committee, and Nomination Committee

Climate Goals & Targets

Environmental Challenges

• Financial risk (cash flow, interest rate, foreign exchange, credit, and liquidity risks)
• Operational risk (keeping pace with visual display technology)
• Cyber risk and security
• Data fraud or theft
• Market risk (Hong Kong economy fluctuations)

Mitigation Strategies

• Installed anti-virus software and firewalls
• Provided security code setting training to staff
• Provided training to executive directors and key management for data security
• Determined an overall market risk control framework, monitoring and assessing market conditions and devising refined policies

Supply Chain Management

Supplier Audits: Annual supplier evaluation

Responsible Procurement

• Goods checked for quality and safety; parts suppliers must comply with safety standards

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GEM Listing Rules Appendix 20

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 Protection
• Employment and Labour Practice
• Health and Safety
• Development and Training
• Supply Chain Management
• Product Responsibility
• Privacy Protection
• Anti-corruption
• Community Investment

Environmental Achievements

• Implemented measures to reduce greenhouse gas emissions
• Implemented multiple measures in enhancing energy efficiency, minimizing the use of paper, reducing water and energy consumption and driving behavioural changes of employees.

Social Achievements

• Safeguarding the legitimate rights and interests of employees, maintaining their physical and mental health and providing various benefits
• Providing vast opportunities of career development for every employee

Governance Achievements

• Established and maintained high standards of corporate governance
• Established three committees: audit committee, remuneration committee, and nomination committee

Climate Goals & Targets

Environmental Challenges

• Business severely affected by the COVID-19 pandemic, leading to decreased revenue and increased losses.
• Supply chain disruptions due to COVID-19 restrictions and control measures.
• Significant decrease in the number of shows and events.

Mitigation Strategies

• Exploring new business opportunities in online concerts and extended reality (xR) shows/events.
• Minimizing operating costs (e.g., no-pay leave, rent reduction requests).
• Accelerating the collection of trade receivables.
• Obtaining a new banking facility.
• Implementing various cost-saving measures and controlling capital expenditures.

Supply Chain Management

Supplier Audits: Annual supplier evaluation

Responsible Procurement

• All parts suppliers of our electronic equipment must comply with national or international safety standard.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GEM Listing Rules Appendix 20

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed