Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Environmental management system independently certified against ISO 14001:2015
• Health and safety management system certified to be in conformance with OHSAS 18001:2007
• Quality control system accredited by Hong Kong Quality Assurance Agency with ISO 9001:2015 standards

Social Achievements

• Actively encouraged employees to participate in various charitable events
• No material case of non-compliance with local child and forced labor related laws and regulations noted
• Average training hours of each employee were approximately 8 hours

Governance Achievements

• Complied with the Corporate Governance Code (CG Code) from the Listing Date up to the date of this report, with the exception of the deviation from code provision A.2.1
• Established Audit Committee, Remuneration Committee, and Nomination Committee
• Appointed three independent non-executive Directors representing more than one-third of the Board

Climate Goals & Targets

Environmental Challenges

• Industry risks (dependence on Hong Kong property market)
• Compliance risks (changes in qualification requirements)
• Uncertainties in construction progress (unexpected geological conditions)
• Failure to guarantee new business (reliance on a limited number of customers)

Mitigation Strategies

• Improving operation efficiency and profitability
• Proactively seeking opportunities to expand customer base and market share
• Utilizing net proceeds from share offer to enhance service capacity
• Developing stable and strong working relationships with suppliers and subcontractors
• Implementing stringent quality control system and commitment to environmental and occupational health and safety management

Supply Chain Management

Responsible Procurement

• Maintaining an internal approved list of suppliers

Climate-Related Risks & Opportunities

Reporting Standards

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

Certifications: ISO 9001:2015, OHSAS 18001:2007, ISO 14001:2015

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Set target to reduce 5% of GHG emissions by 2027, using 2022 as the baseline year.
• Set target to reduce 5% of energy consumption by 2027, using 2022 as the baseline year.
• Environmental management system independently certified against ISO 14001:2015.

Social Achievements

• No material non-compliance with applicable laws and regulations relating to occupational health and safety.
• No material case of non-compliance with local child and forced labor related laws and regulations.
• Provided various types of training to employees, covering technical knowledge, safety, first aid, regulatory compliance, and environmental matters.

Governance Achievements

• Complied with the Corporate Governance Code, except for deviation from code provision C.2.1 (Chairman also serves as CEO).
• Established Audit Committee, Remuneration Committee, and Nomination Committee.
• All independent non-executive directors confirmed their independence.

Climate Goals & Targets

Environmental Challenges

• Decrease in revenue and gross profit margin due to increased cost of sales (raw material price increase) and stagnation in Hong Kong's economic growth.
• Industry risks related to Hong Kong's property market development.
• Compliance risks related to changes in laws and regulations.
• Uncertainties in construction progress due to unexpected geological or sub-soil conditions.
• Risk of customer concentration.

Mitigation Strategies

• Leveraging solid track record in the foundation industry and favorable government policies.
• Regularly monitoring existing and emerging trends, policies, and regulations relevant to climate change.
• Consistent effort in expanding and diversifying customer base.
• Strengthening relationships with main contractors.
• Flexible working arrangements and precautionary measures during bad weather.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Maintain an internal approved list of suppliers.
• Regular inspection on the quality of works and progress as delivered by subcontractors.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events disrupting operations.

Transition Risks

• Stringent climate legislations and regulations.
• Increasing requirements of climate-related information disclosures.

Opportunities

• Not disclosed

Reporting Standards

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

Certifications: ISO 14001:2015, OHSAS 18001

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 emissions (Nitrogen Oxides, Sulphur Oxides, Carbon Dioxide, and Respiratory Suspended Particles) compared to the previous year. Set a target to reduce GHG emissions by 5% by 2027 (using 2022 as the baseline year).
• Reduced non-hazardous waste (soil disposal) from 214,212 tons in 2023 to 18,289 tons in 2024. Set a target to reduce energy consumption by 5% by 2027 (using 2022 as the baseline year).
• Environmental management system independently certified against ISO 14001:2015.

Social Achievements

• Implemented a comprehensive occupational health and safety management system certified to OHSAS 18001.
• Provided safety training to staff.
• No material non-compliance with local child and forced labor related laws and regulations.

Governance Achievements

• Established an Audit Committee, Remuneration Committee, and Nomination Committee.
• Appointed a Company Secretary.
• Adopted a whistleblowing policy.

Climate Goals & Targets

Environmental Challenges

• Labor shortage in the construction industry.
• Uncertainties in construction progress due to unexpected geological or sub-soil conditions.
• Reliance on a limited number of customers.
• Qualified opinion on deposits paid for a construction contract due to insufficient documentary evidence and a thin budgeted gross profit margin.

Mitigation Strategies

• Actively seeking new investment opportunities.
• Implementing flexible working arrangements and precautionary measures during bad weather.
• Regularly monitoring existing and emerging trends, policies, and regulations relevant to climate change.
• Expanding and diversifying customer base.
• Conducting a detailed review of workflow, decision-making, and record-keeping processes to improve internal controls. Refrain from entering into contracts in the PRC construction industry until the review is complete.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Maintain an internal approved list of suppliers.
• Regular inspection on the quality of works and progress as delivered by our subcontractors.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events disrupting operations.

Transition Risks

• Stringent climate legislations and regulations.
• Increasing requirements of climate-related information disclosures.

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: ESG Reporting Guide (Appendix C2 to the Rules Governing the Listing of Securities on Main Board of the Stock Exchange of Hong Kong Limited)

Certifications: ISO 14001:2015, OHSAS 18001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed