Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Awarded “2016 Hong Kong Corporate Environmental Leadership Awards” and allowed to use the logo of “EcoPartner” by Wahheng and Everwin.
• Implemented various measures for energy conservation and emission reduction, including introducing highly efficient equipment, simplifying operation procedures, and maximizing green areas by plantation.

Social Achievements

• Organized various activities for community involvement, including elderly home visits, donations to the underprivileged, and participation in the “Caring Company” scheme.
• Everwin donated RMB5,000 to the community’s Poverty Alleviation Fund.
• Awarded “Caring Company” logo by The Hong Kong Council of Social Service.
• Implemented Employees Training and Development Policy, including induction orientation, on-the-job trainings, and a three-year Management Trainee Programme.

Governance Achievements

• Complied with all the code provisions as set out in the Corporate Governance Code except for two minor deviations related to the Chairman's absence from a meeting and the vacancy in the company secretary position.
• Adopted a board diversity policy in August 2013.
• Established an audit department to review and supervise business activities and issued a Code of Conduct to ensure legal and ethical business practices.

Climate Goals & Targets

Environmental Challenges

• Risks relating to Trading and Manufacturing: Macroeconomic environment, cost increase.
• Risks relating to Property Investment and Development: Risks associated with the property market in Mainland China and Hong Kong.
• Risks relating to Agriculture and Forestry: Risk associated with natural disasters or adverse weather conditions.

Mitigation Strategies

• The Group will conduct regular reviews and focus on mitigating the risks exposure of each business unit.

Supply Chain Management

Responsible Procurement

• Supplier Management and Control Procedures

Climate-Related Risks & Opportunities

Awards & Recognition

• 2016 Hong Kong Corporate Environmental Leadership Awards
• Caring Company” logo

Environmental Metrics

ESG Focus Areas

• Environment
• Employment and Labour Practices
• Operation Practices
• Community Investment

Environmental Achievements

• Certified as “Hong Kong Green Organization” for the second consecutive year.
• Reduced total water consumption.
• Reduced non-hazardous wastes due to tighter control on the production scrap rate.

Social Achievements

• Compliance with IETP CARE Process since 2004.
• No work-related fatalities.
• Conferred an award of the “Caring Company” logo by The Hong Kong Council of Social Services for four years.

Governance Achievements

• Compliance with the Model Code for Securities Transactions by Directors of Listed Issuers.
• Established an Audit Committee and a Remuneration and Nomination Committee.
• Adopted a board diversity policy.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic affecting customer orders from the USA.
• Renminbi appreciation increasing production cost.
• Rising labour and material costs.
• Labour shortage.
• Petroleum production disturbance raising raw material prices.
• Sino-US trade war.
• Tenants demanding rental reliefs due to severe market conditions.

Mitigation Strategies

• Prompt resumption of production capability in Mainland China.
• Cost reduction measures through big data analytic systems and simplification of operation workflows.
• Shifting production capacity from Shenzhen and Dongguan to Guangxi and Vietnam.
• Setting up two more factories in Guangxi in 2021.
• Increasing production orders handled by the factory in Vietnam.
• Reinforcing business relationships with key customers and soliciting new orders.
• Re-engineering exercises, including simplification and consolidation of operation procedures and human resources.
• Offering rental restructuring or relief on a temporary basis to tenants.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Compliance with all applicable laws and regulations in respect of their employment and operations.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: IETP, ISO9001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• “Caring Company” logo (4 years)
• “Hong Kong Green Organization” (2 years)

Environmental Metrics

ESG Focus Areas

• Environment
• Employment and Labour Practices
• Operation Practices
• Community Investment

Environmental Achievements

• Certified as “Hong Kong Green Organization” for the third consecutive year.
• Reduced total water consumption.
• Reduced GHG emissions (specific figures provided in the report).

Social Achievements

• Maintained product acceptance rate at almost 100%.
• No product recall due to safety or health reasons and no significant complaints in respect of defects during the year under review.
• Conferred an award of “Caring Company” logo by The Hong Kong Council of Social Services for six years.
• Supported a number of charitable organizations.
• Donated medical supplies and monetary contributions to frontline workers.

Governance Achievements

• Complied with all applicable code provisions as set out in the Corporate Governance Code, with the exception of code provisions E.1.2 and A.6.7.
• Established an Audit Committee and a Remuneration and Nomination Committee.

Climate Goals & Targets

Environmental Challenges

• Market uncertainties due to the COVID-19 pandemic, US-China trade war, and RMB appreciation.
• Rising production costs (labour, materials, shipping).
• Labour shortage.
• High raw material costs.
• Shortage of shipping containers.

Mitigation Strategies

• Shifting production from Shenzhen and Dongguan to Guangxi and Vietnam (lower labour cost areas).
• Simplifying and consolidating operational procedures.
• Extending the use of automation.
• Providing one-stop integral solutions and product development services.
• Securing new customers from competitors.
• Shifting production capacity to Guangxi and Vietnam.
• Using prudent and cost-effective strategies to minimise risks.
• Fixing prices in materials with suppliers.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Assessment of potential suppliers; fostering key suppliers to comply with laws and regulations, business ethics, and labour standards.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: IETP CARE, Hong Kong Green Organization, ISO9001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• “Caring Company” logo (6 years)
• “Hong Kong Green Organization” (3 years)

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Employment and Labour Practices
• Supply Chain Management
• Product Responsibility
• Anti-corruption
• Community Investment

Environmental Achievements

• Certified as “Hong Kong Green Organization” for the third consecutive year.
• Reduced total GHG emissions (PRC plants) from 17,082 tonnes to 12,767 tonnes.
• Reduced total water consumption (PRC plants) from 333,883 m3 to 243,612 m3.

Social Achievements

• Maintained product acceptance rate at almost 100%.
• No product recall due to safety or health reasons and no significant complaints in respect of defects during the year.
• Consecutively conferred an award of “Caring Company” logo by The Hong Kong Council of Social Services.

Governance Achievements

• Compliance procedures are in place to ensure adherence to applicable laws, rules and regulations.
• No confirmed incidents in relation to corruption, and no suppliers’ contracts were terminated or not renewed due to corruption.

Climate Goals & Targets

Environmental Challenges

• Reduced consumption power of retail and end customers resulting from the prolonged COVID-19 pandemic, geopolitical tension and high interest rate environment.
• Relatively high inventory level from the slower consumption rate of consumers.
• Tightened COVID-19 curbs imposed in China in 2022.
• Zero-COVID policy in China adversely affected rental income.
• Substantial downturn in demand for properties in China.
• RMB depreciation and assets write-off and depreciation affected the agriculture and forestry segment.

Mitigation Strategies

• Proactive actions in trimming down overheads and labour cost control by relocating production plants to lower cost areas such as Guangxi and Vietnam.
• Effective management in gaining a competitive edge by achieving effective cost controls in diversification of production in low-cost countries such as Cambodia and Bangladesh.
• Streamlining operation procedures and extending the use of automation.
• Widening its client base and carrying out feasibilities in setting up production bases in other countries that have lower production costs.
• Cautiously optimistic on the sales of residential units of its Central Square.
• Exploring conversion of usage of some other land bank assets from industrial to commercial in Nanjing and Tianjin.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Assessment of all potential suppliers and new suppliers designated by customers.
• Fostering current key suppliers to comply with all applicable laws and regulations.

Climate-Related Risks & Opportunities

Physical Risks

• High frequency and severity of weather events disrupting business operations.
• Longer-term changes in climate patterns causing chronic heat waves.

Transition Risks

• Increase in costs of legal and compliance and costs of change of production machineries with lower emission of GHG.

Opportunities

• Not disclosed

Reporting Standards

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

Certifications: IETP CARE (Caring, Awareness, Responsible, Ethical) Process, Hong Kong Green Organization

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• “Caring Company” logo
• “Hong Kong Green Organization”

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Employment and labor practices
• Supply chain management
• Product responsibility
• Anti-corruption
• Community investment

Environmental Achievements

• Certified as “Hong Kong Green Organisation” for the fourth consecutive year.
• Installed high-efficiency solar photovoltaic panels at the Group’s toys production plant, generating 444,828 kWh annually.
• Replaced existing fluorescent light tubes with LED lights in office areas, staff dormitories, and factories.
• Implemented a water recycling system in staff dormitories, recycling about 35,000 m3 annually.

Social Achievements

• PRC production plants certified by IETP CARE Process since 2004.
• Maintained product acceptance rate at almost 100%.
• No product recall due to safety or health reasons and no significant complaints in respect of defects during the year under review.
• Consecutively conferred an award of “Caring Company” logo by The Hong Kong Council of Social Services.

Governance Achievements

• Compliance with the applicable code provisions as set out in the Corporate Governance Code contained in Appendix C1 of the Listing Rules.

Climate Goals & Targets

Environmental Challenges

• Decrease in purchase orders of toys products received from major customers due to high inflation, high interest rates, and geopolitical tensions.
• Decrease in rental income from properties in Mainland China and Hong Kong due to lower rental rates and slower-than-expected market recovery.
• Competitive and challenging real estate market in Mainland China.
• Risks associated with natural disasters or adverse weather conditions affecting agriculture and forestry operations.

Mitigation Strategies

• Lowering costs by monitoring raw materials, shifting production capacities, and engaging sub-contractors.
• Diversifying production in low-cost countries (Cambodia and Bangladesh) for footwear products.
• Deploying leasing strategy by diversifying tenant portfolio and widening target customer base.
• Cautiously optimistic on sales of residential units of Central Square.
• Studying conversion of land bank assets from industrial to commercial use.
• Exploring plantation opportunities of high profit margin species and focusing on improving harvest, sales distribution channels, resource utilization, and cost control for agriculture and forestry.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Assessment of suppliers based on capability, quality, and price.
• Requirement for suppliers to comply with laws and regulations, including occupational health and safety, environmental protection, and ethical business practices.

Climate-Related Risks & Opportunities

Physical Risks

• High frequency and severity of weather events disrupting business operations.
• Longer-term changes in climate patterns causing chronic heat waves.

Transition Risks

• Policy, legal, technological, and consumption behavior changes increasing costs.

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Listing Rules of The Stock Exchange of Hong Kong Limited

Certifications: IETP, Hong Kong Green Organisation, ISO9001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• “Hong Kong Green Organisation”
• “Caring Company”