Climate Change Data

Environmental Metrics

ESG Focus Areas

• Water Usage Management
• Waste Management
• Energy Efficiency
• Anti-corruption System
• Supply Chain Management
• Occupational Health and Safety Management
• Product and Service Quality
• Customer Satisfaction
• Climate Change

Environmental Achievements

• Implemented energy-saving measures such as using natural sunlight, adjusting indoor lighting, switching off idling lights, kitchen appliances, and other electronic devices; using LED lighting systems; and maintaining a suitable indoor air temperature.
• Implemented water conservation measures such as installing sensor faucets at offices and restaurants.
• Incorporated the “3R” (Reduce, Re-use, and Recycle) initiatives within internal guidelines to promote the reduction of plastic products, disposable utensils, foamed polystyrene containers, and other materials; employees are encouraged to recycle and reuse paper and adopt double-sided printing.

Social Achievements

• Provided internal and external training and safety meetings for employees to enhance their awareness of occupational health and safety.
• Participated in fire drills regularly.
• Implemented various measures to ensure employees’ safety at work, including regular inspections of restaurant and kitchen areas and reviewing internal safety control systems.
• Donated a total of HK$44,850 worth of safe-to-eat surplus cake and pastry to Foodlink.

Governance Achievements

• Established an Audit Committee with written terms of reference.
• Established a Corporate Governance Committee with written terms of reference.
• Established a Remuneration Committee with written terms of reference.
• Established a Nomination Committee with written terms of reference.

Climate Goals & Targets

Environmental Challenges

• Decrease in other income due to reduced government subsidies compared to the previous year.
• Increase in operating expenses due to the commencement of full operation of its new healthcare business.
• Loss on disposal of subsidiaries.
• Resurgence of COVID-19 infections, requiring lockdowns and social distancing measures.
• Shortage of labor supply in the food and beverage industry.
• Tough peer competition following the revival of the food and beverage industry.
• Weaker-than-expected financial performance in the cosmetics sector due to the pandemic.

Mitigation Strategies

• Strategically adjusted operations in Hong Kong with launches of new promotions and offers, and collaborated with various third-party food-ordering platforms to drive additional local spending.
• Expanded takeaway and food delivery services to capture growing demand.
• Further diversified operational risk by tapping into the healthcare market, focusing on oral hygiene.
• Entered into an investment cooperation agreement with two industry leaders to deepen engagement in the development and sale of oral care products.
• Established an entire toothpaste production process alongside online marketing channels.
• Formed a strategic cooperation agreement with a local television broadcaster to jointly promote products.
• Disposed of its stake in the underperforming cosmetics business to divert resources to the oral health business.
• Adopted a “wait and see” approach to the e-cigarette business due to restrictive regulatory measures.

Supply Chain Management

Responsible Procurement

• Select suppliers which have considerations on social and environment protections as well as compliance with the laws, rules and regulations stipulated in the Group’s operating regions.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather such as typhoons and heavy rainstorms may trigger other flooding and landslide hazards, which may affect the safety of our employees during traveling to the workplace or work.

Reporting Standards

Frameworks Used: GEM Listing Rules Appendix 20

Environmental Metrics

ESG Focus Areas

• Water Usage Management
• Waste Management
• Energy Efficiency
• Anti-corruption System
• Supply Chain Management
• Occupational Health and Safety Management
• Product and Service Quality
• Customer Satisfaction

Environmental Achievements

• Implemented energy-saving measures such as using natural sunlight, adjusting indoor lighting, switching off idling lights, kitchen appliances, and other electronic devices; using LED lighting systems; and maintaining a suitable indoor air temperature.
• Implemented water conservation measures such as installing sensor faucets at offices and restaurants.
• Implemented waste reduction initiatives such as promoting the “3R” (Reduce, Re-use, and Recycle) initiatives within internal guidelines to reduce the use of plastic products, disposable utensils, and other materials; encouraging employees to recycle and reuse paper; and adopting double-sided printing.
• Donated approximately HK$110,000 worth of safe-to-eat surplus cakes and mooncakes to support minimizing food waste and supporting sustainability.

Social Achievements

• Provided internal and external trainings and safety meetings for employees to enhance their awareness of occupational health and safety.
• Participated in fire drills regularly.
• Implemented various measures to ensure employees’ safety at work, including regular inspections of restaurant and kitchen areas, and reviewing internal safety control systems to identify any risks.
• Provided masks and sanitizing products to employees; requested all employees to undergo body temperature checks before entering offices and restaurants; requested all employees to do rapid antigen tests before coming back to work; strengthened the cleaning and disinfection of offices and all restaurants; and implemented other COVID-19 prevention measures.
• Provided sufficient in-house training courses and encouraged staff members to attend relevant external training programs to support career development.
• Implemented anti-corruption control system and arranged training related to business ethics, “Listing Rules,” and “Corporate Governance Code” for directors and management.

Governance Achievements

• Complied with the Code Provisions under the Corporate Governance Code set out in Appendix 15 to the GEM Listing Rules.
• Established an Audit Committee and a Corporate Governance Committee with written terms of reference.
• Maintained a high level of open dialogue with shareholders, ensuring that all relevant information is disclosed in a timely and transparent manner through multiple communication channels.

Climate Goals & Targets

Environmental Challenges

• Difficult operating environment due to the ongoing impact of the COVID-19 pandemic, persistent high inflation, continuous monetary tightening policies, unexpected shocks in China (including frequent COVID outbreaks and a historic downturn in the property market), and weak consumer sentiment in Hong Kong.
• Highly competitive market and significantly high entry barriers in the oral care industry, leading to a considerably smaller contribution from the segment than was expected.
• Strict regulations imposed by both the mainland and Hong Kong governments on the e-cigarette industry.
• Increase in the cost of food ingredients since the third quarter of 2021.
• Increased employee turnover rate due to amplified market competition.

Mitigation Strategies

• Adjusted strategies flexibly and pragmatically according to market conditions and the pandemic situation.
• Deepened partnerships with several third-party food-ordering platforms by offering exclusive in-app special offers.
• Launched a series of collaborations with prominent e-commerce platforms and various marketing campaigns for oral care products.
• Implemented stringent cost control actions, including outsourcing manufacturing procedures.
• Improved in-store operational efficiency and effectiveness and provided more training to staff.
• Launched more Japanese seasonal specialties by arranging crossovers and collaborations with Japanese enterprises and prefectural authorities.
• Launched more special offers and marketing promotions to drive additional local spending.
• Strengthened partnerships with popular local online food delivery platforms, launching exclusive special offers to cater to rising demand for cake delivery.
• Upgraded its membership program to better engage and interact with customers.
• Adopted a “wait and see” approach for the e-cigarette business segment.

Supply Chain Management

Responsible Procurement

• Select suppliers which have considerations on social and environment protections as well as compliance with the laws, rules and regulations stipulated in the Group’s operating regions.
• Implement strict standards and procedures in supplier selection, considering quality and safety of food products and materials, delivery time, stable supply, track record, hygiene of food production facilities, etc.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather such as typhoons and heavy rainstorms may trigger other flooding and landslide hazards, which may affect the safety of our employees during traveling to the workplace or work.

Reporting Standards

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

Environmental Metrics

ESG Focus Areas

• Water Usage Management
• Waste Management
• Energy Efficiency
• Anti-corruption System
• Supply Chain Management
• Occupational Health and Safety Management
• Product and Service Quality
• Customer Satisfaction
• Climate Change

Environmental Achievements

• Implemented measures to lower energy consumption (e.g., switching off idling lights, promoting video conferencing)
• Implemented waste management processes in compliance with internal guidelines and local regulations (e.g., recycling, food waste collection)
• Implemented water conservation measures (e.g., sensor faucets)

Social Achievements

• Provided extensive training to front-line employees and enhanced point-of-sale systems
• Continued to derive valuable insights into customer preferences through big data analysis and membership program
• Implemented anti-corruption control system and provided training on business ethics and corporate governance to directors and management

Governance Achievements

• Complied with the Code Provisions under the Corporate Governance Code
• Established an Audit Committee and a Corporate Governance Committee with written terms of reference
• Implemented mechanisms to ensure independent views and input are available to the Board

Climate Goals & Targets

Environmental Challenges

• Decrease in revenue due to reduced consumer spending, increased competition, and Hong Kong residents traveling to mainland China for lower-priced food and beverage options
• Fierce competition and formidable entry barriers in the oral care business
• Stringent regulations imposed globally on the e-cigarette industry
• Ongoing labor shortages and soaring operating costs in the Hong Kong food and beverage industry

Mitigation Strategies

• Adopted a cautious yet pragmatic operational approach, introduced seasonal offerings and promotions, and applied rigorous cost control measures (e.g., outsourcing manufacturing processes)
• Strategically halted development of the oral care business and divested its share capital in Huayin Biotechnology Group
• Redirected attention towards alternative avenues of business, particularly the renewable energy sector
• Implemented stringent cost control measures by balancing the cost-to-revenue ratio of food and beverage expenses and rigorous inventory control practices

Supply Chain Management

Supplier Audits: All suppliers passed supplier assessment process before engagement

Responsible Procurement

• Selecting suppliers with considerations on social and environmental protections and compliance with laws and regulations
• Implementing strict standards and procedures in supplier selection (e.g., quality and safety of products, delivery time, hygiene of facilities)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather (e.g., typhoons, heavy rainstorms) affecting employee safety

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GEM Listing Rules, 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