Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Granted a new hi-tech enterprise certificate for a term of 3 years by the Jiangsu Provincial Department of Science and Technology, the Department of Finance of Jiangsu Province and Jiangsu Provincial Tax Service of the State Taxation Administration. Therefore, it can continue to enjoy the 15% preferential tax rate.
• Awarded the honorary title of “Professional, Refined, Special and Innovative Small and Medium Enterprise in Jiangsu Province for 2022”

Social Achievements

• Maintained good production safety with no major work-related injury, accident or death. There is no lost day due to work injury.
• Maintains all 5 major social security schemes, namely retirement, medical, work-related injury, maternity and unemployment insurance, as well as housing provident fund for all of its employees with 100% participation rate.

Governance Achievements

• The Company has adopted the code provisions in the Corporate Governance Code (the “CG Code”) as set out in Appendix 14 to the Listing Rules as its own code for corporate governance.
• The Board is supported by a number of the Board Committees, including the Audit Committee, Nomination Committee, Remuneration and Appraisal Committee and Strategic Committee.

Climate Goals & Targets

Environmental Challenges

• The domestic economy faced increasing downward pressure due to multiple novel coronavirus disease (the “COVID-19”) outbreaks across the nation.
• The downturn in the global macro-economy and the ever-changing pandemic caused interruptions in the domestic supply chain, disruptions to transportation and a rise in commodity prices.

Mitigation Strategies

• The Group closely monitored market information, seized market opportunities, rose to the challenges, carried out effective pandemic prevention and control, maintained orderly production and operation, and sustained stable growth in its operational performance amid difficulties with concerted efforts.
• Through actively responding to external difficulties and challenges while firmly grasping market opportunities, the Company endeavoured to arrange the schedules of its major projects efficiently.

Supply Chain Management

Supplier Audits: Regular audits and assessments

Responsible Procurement

• Give priority to the most energy-efficient products
• Give priority to effective water-saving products
• Require the suppliers to reduce packaging material
• Remind suppliers that we value environmental protection and energy saving

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events such as extreme cold or heat, storms, heavy rains and typhoons

Transition Risks

• Stricter environmental laws and regulations

Reporting Standards

Frameworks Used: Appendix 27 to the Listing Rules

Certifications: ISO 14001:2015, ISO 45001:2018

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced hazardous waste intensity from 0.0343 in 2022 to 0.0230 in 2023
• Reduced non-hazardous waste intensity from 5.64 in 2022 to 4.73 in 2023
• Reduced energy consumption intensity from 283,412.34 in 2022 to 294,511.20 in 2023
• Reduced water consumption intensity from 4,633.18 in 2022 to 3,988.60 in 2023
• Achieved ISO14001:2015 and ISO45001:2018 certifications

Social Achievements

• Maintained good production safety with no major work-related injury, accident or death in 2023
• 100% participation rate in all 5 major social security schemes and housing provident fund
• Provided comprehensive training and development opportunities to employees

Governance Achievements

• Established four Board committees: Audit Committee, Remuneration and Appraisal Committee, Nomination Committee, and Strategic Committee
• Complied with all code provisions of the Corporate Governance Code
• Maintained the prescribed minimum public float under the Listing Rules

Climate Goals & Targets

Environmental Challenges

• Breaching the Law of the PRC on the Prevention and Control of Water Pollution, resulting in a fine
• Increased impairment losses on properties held for sales
• Significant increase in contract assets and trade receivables balances, leading to higher allowance for impairment

Mitigation Strategies

• Actively taken remedial measures for water pollution
• Implemented stringent quality control measures to ensure product quality and safety
• Closely monitoring and controlling accounts receivable from customers
• Engaging only reputable third-party service providers and closely monitoring their performance

Supply Chain Management

Supplier Audits: Regular audits and assessments

Responsible Procurement

• Strict ethical standards
• Review and assessment of suppliers based on price, quality, suitability and demand
• Continuous monitoring of existing suppliers based on product quality, defect rate, delivery punctuality rate and responsiveness
• Prioritising energy-efficient and environmentally friendly products

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Stricter climate legislations and regulations

Reporting Standards

Frameworks Used: Appendix C2 to the Listing Rules

Certifications: ISO 14001:2015, ISO 45001:2018