Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Social Contribution
• Governance

Environmental Achievements

• Developed an internal environmental policy outlining expectations for employees on environmental-related practices
• Implemented waste management facilitators such as recycling bins and waste reduction reminders
• Embraced green operational practices such as turning off unnecessary lighting

Social Achievements

• Established standard and comprehensive policies and procedures to govern employment management
• Provided employees with attractive welfare package including 5-days working per week, discretionary bonus, retirement benefits and employee discounts
• Organized trainings and workshops for employees on workplace safety initiatives and anti-money laundering
• Donated $1 million to the Community Chest of Hong Kong

Governance Achievements

• Established a three-level ESG governance structure (Decision-Making Level: The Board, Organization Level: Management, Execution Level: Business Units and Subsidiaries)
• Established the audit committee, the remuneration committee and the nomination committee
• Adopted the Model Code for securities transactions by Directors
• Engaged an independent consulting firm to review the effectiveness of its risk management and internal control system

Climate Goals & Targets

Environmental Challenges

• Downward pressure in Hong Kong’s overall market performance due to turbulent global stock market and global recession
• Months of local social unrest in Hong Kong
• Outbreak of COVID-19 which hampered China’s economy and reduced investors’ motivation to subscribe for securities
• Increase in operating expenses due to one-off charity donation and increase in audit fee

Mitigation Strategies

• Maintained a strong cash position with total bank deposits
• Adopted a conservative but flexible approach for utilising proceeds from the IPO
• Slowed down the expansion plan for establishment and renovation of a new office and enhancement of IT systems
• Strengthened protective measures against COVID-19 including distribution of masks and sanitizers and enhanced sterilization of office area

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Emphasized on service providers’ business ethics and conducts as well as environmental, social and governance performance

Climate-Related Risks & Opportunities

Physical Risks

• Increasing number and intensity of typhoon

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Appendix 27 Environmental, Social and Governance Reporting Guide 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 Protection
• Labour Practices
• Operational Practices
• Community Investment

Environmental Achievements

• Minimized environmental impact by strictly conforming to environmental laws and regulations.
• Developed an internal environmental policy outlining expectations for employees on environmental practices.
• Reduced GHG emissions from 18 tonnes CO2e to 15 tonnes CO2e.
• Reduced non-hazardous waste from 1210 kg to 994 kg.

Social Achievements

• Fully complied with Employment Ordinance of Hong Kong.
• Prioritized employee well-being by implementing COVID-19 protective measures.
• Organized trainings and workshops to enhance employees’ professional skills and knowledge.
• Prohibited child labour and forced labour.

Governance Achievements

• Established a three-level ESG governance structure (decision-making, organization, execution).
• Established an ESG working group to assist in implementing strategies and initiatives.
• Conducted materiality assessments to identify and address key ESG issues.
• Implemented a clear set of complaint management processes.
• Implemented Personal Data (Privacy) Policy in accordance with the Personal Data (Privacy) Ordinance of Hong Kong.
• Implemented Code of Conduct and provided anti-money laundering training to prevent corruption.

Climate Goals & Targets

Environmental Challenges

• Decreased total revenue by 36.3% compared to the previous year, mainly due to decreased placing and underwriting services income and commission and brokerage income on securities dealing.
• Intense competition in the market for commission rates charged to clients.
• Increased impairment loss for accounts receivable.
• Increased operating expenses and staff costs.
• Market volatility due to the COVID-19 outbreak.

Mitigation Strategies

• Adopted a more prudent approach in taking up new placing and underwriting projects.
• Strengthened cash flow through the initial public offering.
• Implemented cost-saving measures.
• Developed comprehensive typhoon arrangements to safeguard employee health and safety.
• Reduced in-person contacts between employees and clients to mitigate COVID-19 risks.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Emphasis on service provider’s business ethics, ESG performance, and potential environmental and social risks.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions such as typhoons.

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Appendix 27 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 Protection
• Labour Practices
• Operation Practices
• Community Investment
• Anti-corruption

Environmental Achievements

• Reduced total GHG emissions from 15 tCO2e to 13 tCO2e
• Reduced non-hazardous waste from 994 kg to 524 kg (Note: data collection methodology changed, direct comparison not applicable)

Social Achievements

• Maintained employee training with an average of 7.3 hours per employee
• Implemented work-from-home measures during the COVID-19 pandemic to ensure employee safety

Governance Achievements

• Established a three-level ESG governance structure (Board, Management, Business Units)
• Engaged an independent consulting firm to review the effectiveness of its risk management and internal control system

Climate Goals & Targets

Environmental Challenges

• Intense competition in the market for commission rates charged to clients
• Unfavorable investment sentiment and volatility in financial markets due to the Russo-Ukrainian conflict and the fifth wave of COVID-19 in Hong Kong
• COVID-19 pandemic impacting operations and community investment activities

Mitigation Strategies

• Adopted a more prudent business approach in clients’ acceptance for IPOs engagements
• Adjusted business strategies to be more active in placing agent and underwriter engagements of listed companies
• Implemented work-from-home measures and strengthened protective measures in the office during the COVID-19 pandemic
• Temporarily suspended charitable and voluntary activities during the COVID-19 pandemic

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Emphasis on service provider’s business ethics, ESG performance, and potential environmental and social risks

Climate-Related Risks & Opportunities

Physical Risks

• Increasing frequency and intensity of extreme weather conditions

Transition Risks

• Development of international policy and regulation on climate change; evolving commitment of the Hong Kong Government to carbon reduction; increased compliance costs; risk of claims and litigation; market risk from investors advocating for addressing climate change

Opportunities

• Focusing on green financial services to develop business

Reporting Standards

Frameworks Used: Appendix 27 Environmental, Social and Governance Reporting Guide 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 Protection
• Labour Practices
• Operation Practices
• Community Investment
• Anti-corruption

Environmental Achievements

• Implemented measures to reduce paper waste, resulting in a 14.31% decrease in non-hazardous waste intensity.
• Initiated a lighting upgrade project to LED, aiming for improved energy efficiency.

Social Achievements

• Maintained a 13% employee turnover rate.
• Provided training to 100% of employees, averaging 6.8 hours per employee.

Governance Achievements

• Established a three-level ESG governance structure (Board, Management, Business Units).
• Implemented a “Code of Conduct” with zero tolerance for corruption and bribery.

Climate Goals & Targets

Environmental Challenges

• Increased total GHG emissions due to higher electricity consumption.
• Contracted trading activities in the capital market due to economic stagnation and unfavorable investment sentiment.

Mitigation Strategies

• Actively adopting measures to reduce emissions, including energy conservation practices and lighting upgrades.
• Maintaining a prudent approach in evaluating existing business portfolios and potential opportunities, adopting a conservative approach to utilizing proceeds from the IPO.

Supply Chain Management

Supplier Audits: Periodic evaluation of service providers.

Responsible Procurement

• Criteria for selection include pricing, quality of work, performance capability, business ethics, ESG performance, and potential environmental and social risks.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions (typhoons).

Transition Risks

• International and local policies and regulations on climate change.
• Evolving commitment of the Hong Kong Government to carbon reduction.
• Market risk from investors advocating for addressing climate change.

Opportunities

• Development of green financial services.

Reporting Standards

Frameworks Used: Appendix 27 Environmental, Social and Governance Reporting Guide of the Rules Governing the Listing of Securities

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
• Labour Practices
• Supply Chain Management
• Service Responsibility
• Anti-corruption
• Community Investment

Environmental Achievements

• Reduced non-hazardous waste intensity by approximately 16.70%
• Held an internal sharing session to advocate waste reduction practices among employees

Social Achievements

• 0% employee turnover rate (2023: approximately 13%)
• 100% of employees participated in training (2023: 100%)
• Provided two training sessions on anti-money laundering and anti-corruption policies

Governance Achievements

• Established a three-level ESG governance structure
• Implemented a clear set of complaint management process
• Implemented the “Personal Data (Privacy) Policy” to protect customer privacy

Climate Goals & Targets

Environmental Challenges

• Decreased interest income from margin financing services due to decreased demand
• Increased impairment loss for accounts receivable from securities dealing
• Difficulties in expanding asset management services due to unfavorable investment landscape

Mitigation Strategies

• Took various actions to recover accounts receivable, including restructuring arrangements, issuing demand letters, and legal proceedings
• Implemented stricter credit risk policies and procedures
• Adopted a conservative approach for utilizing proceeds from IPO

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Criteria for selection include pricing, quality of work, performance capability, business ethics, ESG performance, and potential environmental and social risks

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions (typhoons)
• Sustained high temperature

Transition Risks

• International and local policies and regulations on climate change
• Market risk from investors advocating for addressing climate change

Opportunities

• Development of green financial services

Reporting Standards

Frameworks Used: Appendix C2 (formerly known as Appendix 27) Environmental, Social and Governance Reporting Guide of the Rules Governing the Listing of Securities, SASB Standards

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed