Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Signed the carbon reduction charter initiated by the Hong Kong Environmental Protection Department
• Participated in computer recycling program and donated used computer equipment to recycle center, which subsequently sent to charitable organisations after repairment and renewal
• Implemented a proactive approach towards environmental management in order to ensure our construction works and business operations in compliance with the PRC environmental laws and regulations

Social Achievements

• Supported community development and encouraged our staffs to participate in volunteering and charitable activities, such as “Dress Casual Day” and “Love Teeth Day”
• Donated RMB 18,000 to several charitable organisations in the PRC
• Organised a number of activities for team-building and recreational purposes (annual meeting, spring outing, visit to Shenzhen Kowloon Eco-agricultural Park)

Governance Achievements

• Complied with the code provisions set out in the Corporate Governance Code (the “CG Code”) as set out in Appendix 14 to the Listing Rules, except for deviations related to the roles of the Chairman and Chief Executive Officer and the composition of the Board committees.
• All Directors had complied with the required standard set out in the Model Code throughout the financial year under review.
• Periodically reviewed its corporate governance practices to ensure they continue to meet the requirements of the CG Code during the year of 2016.

Climate Goals & Targets

Environmental Challenges

• Fluctuation in the exchange rate of Renminbi against Hong Kong dollars
• Difficulty in obtaining adequate financing
• Preserving or enhancing our competitive position in the agri-products exchange markets industry
• Maintaining or enhancing the level of occupancy at our agri-products exchange markets
• Obtaining all necessary licenses and permits for the development, construction, operations and acquisition of agri-products exchange markets
• The effect of changes and amendments in the national laws and regulations on the Group’s operations and our environmental policies
• Rapid change of commercial property market which led to the decrease in market price for commercial properties in the PRC and competition of the entire market business environment in the PRC

Mitigation Strategies

• Tightening control of operating expenses
• Implementation of cost saving polices in the Group’s marketing and promotion events in 2016
• Make use of risk hedging tools to mitigate Renminbi currency exchange risk
• Utilise various financing alternatives including equity and debt financing to obtain sufficient financing to support our operations
• Adapt to the fast-changing market and adhere to any changes in the PRC government’s policies and regulations
• Review the external environment and modify our market strategies
• Engaged independent environmental consultants to conduct environmental impact assessments at all of our constructions projects

Supply Chain Management

Responsible Procurement

• Suppliers are evaluated by the price, past experience and quality.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ESG Reporting Guide sets out in Appendix 27 to the Listing Rules

Awards & Recognition

• top 50 of agricultural products supply chain contributors by China Agricultural Wholesale Market Association (Wuhan Baisazhou Market)
• National Prominent Enterprise in Agricultural Industry by the Ministry of Agriculture (Wuhan Baisazhou Market, Xuzhou Market)
• one of the best agricultural products supply chain contributors by China Agricultural Wholesale Market Association (Luoyang Market)

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Social responsibility
• Governance

Environmental Achievements

• Reduced fugitive dust at construction sites
• Installed wastewater treatment facilities
• Participated in computer recycling program
• Signed carbon reduction charter

Social Achievements

• Participated in World No Tobacco Day
• Participated in Hong Kong and Kowloon Walks for Millions
• Participated in Dress Casual Day
• Donated approximately HK$295,000 and RMB30,000 to charity
• Organized team-building and recreational activities for employees

Governance Achievements

• Established anti-corruption rules and whistleblowing policy
• Organized anti-corruption training programs

Climate Goals & Targets

Environmental Challenges

• Fluctuation in the exchange rate of Renminbi against Hong Kong dollars
• Difficulty in obtaining adequate financing
• Preserving or enhancing competitive position
• Maintaining or enhancing occupancy levels
• Obtaining necessary licenses and permits
• Changes and amendments in laws and regulations

Mitigation Strategies

• Tight cost control
• Negotiating with bankers for facilities
• Asset-light operation strategy
• Exploring opportunities to cooperate with business partners in e-commerce
• Proactive environmental protection strategy
• Compliance with environmental protection laws and regulations

Supply Chain Management

Responsible Procurement

• Fair supplier selection criteria

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ESG Reporting Guide (Appendix 27 to the Listing Rules)

Awards & Recognition

• Top 50 of agricultural products supply chain contributors

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Social Responsibility
• Corporate Governance

Environmental Achievements

• Participated in Earth Hour, Skip Lunch Day, and Dress Casual Day.
• Improved strong electricity monitoring alert system for various agricultural produce exchange markets, strengthened fire protection capability.
• Complied with PRC environmental laws and regulations; no significant fines or sanctions.

Social Achievements

• Donated approximately HK$377,056 to community organizations.
• Organized poverty alleviation donation and gave staple foods to the needy.
• Implemented various operating strategies to improve market performance.

Governance Achievements

• Complied with the Corporate Governance Code (except for one deviation regarding the Chairman also being CEO).
• All Directors complied with the Model Code for Securities Transactions.
• Established and maintained effective risk management and internal control systems.

Climate Goals & Targets

Environmental Challenges

• Fluctuation in RMB exchange rate.
• Difficulty obtaining adequate financing.
• Maintaining competitive position and occupancy levels.
• Obtaining necessary licenses and permits.
• Changes in national and local laws and regulations.
• Moderate environmental risk from climate change.
• Potential cyber risks and network security.

Mitigation Strategies

• Implemented cost-saving policies.
• Negotiating with bankers for facilities.
• Asset-light operation model.
• Diversification of businesses.
• Improved strong electricity monitoring alert system and fire protection.
• Engaged independent environmental consultants for EIAs.
• Formulated policies and procedures to regulate internet use and safeguard systems.

Supply Chain Management

Responsible Procurement

• Fair supplier selection standard

Climate-Related Risks & Opportunities

Physical Risks

• Serious and permanent climate change

Reporting Standards

Frameworks Used: Appendix 27 to the Rules Governing the Listing of Securities on the Stock Exchange

Awards & Recognition

• Top 10 agricultural produce exchange market by China Agricultural Wholesale Market Association (Wuhan Baisazhou Market)
• The Most Influential Market by the Market Development Committee of the Marketing Association of the PRC (Luoyang Market)
• Model Market of Modern and Reliability by the Industrial and Commercial Bureau of Luoyang City (Luoyang Market)
• Food Safety Model Wholesale Market of Guangxi Region by the Food and Medicine Supervision and Management Authority (Yulin Market)