Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Staff Care
• Supplier Management
• Product Responsibility
• Anti-Corruption
• Community Investment

Environmental Achievements

• Reduced greenhouse gas emission intensity despite production facility expansion.
• Installed solar powered water heating system in office and dormitory.
• Replaced company vehicles with fuel-efficient models and gradually replacing electrical forklifts.
• Recycled paper and plastic waste.

Social Achievements

• Organized staff training totaling 33,550 hours, a 1.7 times increase from 2016.
• Provided a green working environment with plantations and recreation facilities.
• Organized social gatherings to promote work-life balance.
• Conducted interviews to understand reasons for employee turnover.
• No work-related fatalities; 5 accidents resulting in 336 man-days lost.
• Established a volunteer group participating in community service (692 hours) and donated HK$65,000.

Governance Achievements

• Implemented anti-corruption procedures and training program.
• Obtained Medical Device Quality Management System ISO 13485 and Risk Management for Medical Device ISO 14971 certifications.
• Registered 43 trademarks in 2017.
• Developed data privacy policies and procedures.

Climate Goals & Targets

Environmental Challenges

• Increased greenhouse gas emissions and electricity consumption due to production facility expansion.
• Employee turnover rate of 7.2%.
• Five accidents in production facilities resulting in lost man-days.

Mitigation Strategies

• Investment in new technology and improved operational practices to minimize emissions.
• Interviews conducted to understand reasons for employee departures and implement retention strategies.
• Intensive investigation after each accident to prevent recurrence; improved safety training and signage.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier social responsibility code of conduct shared with suppliers.
• On-site evaluation of suppliers focusing on quality, environmental protection, and social responsibility.

Climate-Related Risks & Opportunities

Reporting Standards

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

Certifications: ISO 13485, ISO 14971

Third-party Assurance: Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Employee Well-being
• Supply Chain Management
• Product Quality
• Anti-Corruption
• Community Investment

Environmental Achievements

• Reduced non-hazardous waste by 9.1% compared to 2018.
• Reduced packaging material usage by 20.7% compared to 2018.
• Installed a solar-powered water heating system.

Social Achievements

• Maintained a stable employee turnover rate of 6%.
• Provided 22,796 training hours to 99% of employees.
• Organized a 2-day team-building event for executive directors and senior management.
• Offered approximately 1,712 hours of in-kind support to the needy.

Governance Achievements

• Implemented anti-corruption policies and provided two hours of anti-corruption training to all employees.
• Established a Supplier Corporate Social Responsibility Code of Conduct.
• Successfully attained ISO 13485 Certification on Medical Device Quality Management System.

Climate Goals & Targets

Environmental Challenges

• Increased Scope 1 and 3 GHG emissions due to higher transportation needs and business travel.
• High usage of unleaded petrol (increased by 172.2% compared to 2018).

Mitigation Strategies

• Seeking initiatives to adopt cleaner alternatives to diesel vehicles.
• Promoting eco-driving habits and installing devices that trap pollutants.
• Implementing energy-saving measures (e.g., LED lights, energy management center).
• Implementing water-saving measures (e.g., water flow controllers, water-efficient taps).
• Cost down plan to minimize packaging material usage.

Supply Chain Management

Supplier Audits: Onsite audits conducted by supplier evaluation team before approval.

Responsible Procurement

• Supplier Corporate Social Responsibility Code of Conduct (covering environmental protection, health & safety, intellectual property, conflict of interest, human rights).
• Evaluation & Approval of Supplier Procedure
• Incoming Inspection

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Appendix 27 to the Listing Rules (Hong Kong)

Certifications: ISO 13485

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 Protection
• Occupational Health and Safety
• Supply Chain Management
• Product Quality
• Community Investment
• Employee Well-being

Environmental Achievements

• Installed a solar-powered water heating system
• Replaced conventional lightings with LED lights or T5 fluorescent tube
• Purchased two environmentally friendly electrical forklifts
• Implemented an Office Automation (OA) System and the SAP system to minimize paper usage

Social Achievements

• Maintained a stable employee turnover rate of 7.2%
• Provided 31,848 training hours to employees (96.4%), including 1,931 hours on ESG-related topics
• Established a safety committee to manage workplace safety
• Donated approximately HK$3.2 million in respiratory disposables and devices to Huoshenshan hospital in Wuhan and the National Health Service of the United Kingdom
• Established the “Vincent Medical Enrichment Scholarship for Medical Student” with an initial donation of HK$500,000

Governance Achievements

• Established an ESG Committee on August 25, 2020
• Implemented anti-corruption policies and provided 984 anti-corruption training hours to 930 employees
• Successfully attained Certifications on Medical Device Quality Management System ISO 13485

Climate Goals & Targets

Environmental Challenges

• Global outbreak of COVID-19 pandemic impacting supply chain and increasing resource consumption
• Increased demand for respiratory devices and disposables leading to greater resource consumption and emissions

Mitigation Strategies

• Adopted a series of COVID-19 safety measures
• Maintained close contact with suppliers to identify and mitigate risks
• Secured alternative suppliers for critical raw materials
• Provided financial support and medical devices to fight COVID-19
• Developed alternative resources for critical components
• Diversified suppliers from other countries

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Corporate Social Responsibility Code of Conduct (covering environmental protection, health and safety, intellectual property, conflict of interest, and human rights)

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: “Environmental, Social and Governance Reporting Guide” (Appendix 27 of the Listing Rules issued by the Stock Exchange in 2015), aspects, general disclosures and key performance indicators (KPIs) of the new Guide issued in 2020

Certifications: ISO 13485

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

• Product Quality and Safety
• Intellectual Property Right Protection
• Occupational Health and Safety
• Product Development
• Labour Standards

Environmental Achievements

• Reduced total GHG emission by 11.2%
• Reduced total hazardous waste by 66.1%
• Reduced total non-hazardous waste by 23.4%
• Reduced total energy consumption by 11.3%
• Reduced total water consumption by 7.8%

Social Achievements

• Maintained a stable employee turnover rate at 6.5%
• Provided 31,931 training hours to employees (average 25 hours per employee)
• Established an employees’ welfare fund
• Organised team building activities
• No work-related fatalities in the past three years

Governance Achievements

• Adopted an updated anti-corruption policy
• Provided 234 anti-corruption training hours
• No suspected case of bribery, extortion, fraud and money laundering

Climate Goals & Targets

Environmental Challenges

• Normalised demand for respiratory medical devices after the initial surge of COVID-19
• Unprecedented supply chain disruptions
• Higher freight and raw materials costs
• Worsening business prospects and financial performance of GZ Hypnus and Fresca
• COVID-19 pandemic and rising geopolitical tension affecting the world economy

Mitigation Strategies

• Entered into long-term collaboration agreements with world-leading medical technology companies
• Expanded distribution network
• Disposed of all effective interests in GZ Hypnus
• Developed alternative sourcing strategies for critical components
• Implemented COVID-19 safety measures and social distancing policy

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Corporate Social Responsibility Code of Conduct; Evaluation & Approval of Supplier Procedure; Incoming Inspection; yearly supplier evaluation

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes to restrict emissions

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Appendix 27 of the Listing Rules

Certifications: ISO 13485

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Selected as one of the pilot enterprises of Dongguan City’s “2021 Business Doubling Plan”; Selected as part of the Forbes Asia’s Best Under a Billion 2021; Awarded the title “Brand Alliance of Advanced Manufacturing of Rehabilitation Assistive Devices in Dongguan City”

Environmental Metrics

ESG Focus Areas

• Quality of products
• Safety of products
• Occupational health and safety
• Customer satisfaction
• Business ethics
• Intellectual property

Environmental Achievements

• Reduced total air emission by approximately 40% (54.29 kg in 2022 vs 89.98 kg in 2021).
• Reduced total GHG emissions by 4% (12,315 tonnes in 2022 vs 12,855 tonnes in 2021).
• Reduced total water consumption by approximately 18% (134,002 m3 in 2022 vs 162,807 m3 in 2021).
• Reduced paper consumption by 10% (7.2 tonnes in 2022 vs 8 tonnes in 2021).
• Reduced total packaging material consumption by 35% (598 tonnes in 2022 vs 917 tonnes in 2021).

Social Achievements

• Reduced overall employee turnover rate by 2.3 percentage points (4.2% in 2022 vs 6.5% in 2021).
• Provided 19,015 training hours to employees (100% training rate, average 16 hours per staff).
• Contributed 152 volunteer hours in delivering volunteer services to the local communities.
• Donated 20,000 pieces of COVID-19 self-testing kits (approximately HK$200,000 in value).

Governance Achievements

• Established an ESG Committee and Working Group to oversee ESG matters.
• Established a Whistleblowing Policy to ensure timely and appropriate management of suspected wrongdoing.
• Established an Anti-Corruption Policy with zero-tolerance approach to bribery.
• Provided 92 anti-corruption training hours to directors and employees.

Climate Goals & Targets

Environmental Challenges

• Rising geopolitical risks and resurgence of COVID-19 put significant pressure on operations.
• Macro uncertainties and supply chain disruptions created challenges on raw material supply and delays in product registration and market penetration.
• Potential physical and financial consequences of climate change, including higher energy costs and disruptions to supply chains.

Mitigation Strategies

• Reduction of vehicle fleet usage and consumption of fossil fuels.
• Lower purchased electricity consumption.
• Implementing relevant measures to mitigate the impacts from its operation activities (emissions, waste, water, energy).
• Stringent policy in packaging materials inventory control.
• Implementing anti-infection prevention measures to protect employees from COVID-19.
• Established supply chain management policy, including supplier evaluation and approval procedures.

Supply Chain Management

Supplier Audits: Annual supplier evaluation

Responsible Procurement

• Supplier Corporate Social Responsibility Code of Conduct covering environmental protection, health and safety, intellectual property, conflict of interest, and human rights.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events that disrupt product supply chains

Transition Risks

• Potential change in governmental policies and regulations due to increasing global concern on climate change issues

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: “Environmental, Social and Governance Reporting Guide” (Appendix 27 of the Listing Rules issued by the Stock Exchange)

Certifications: ISO 13485:2016

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

• Safety of products
• Quality of products
• Intellectual property
• Customer satisfaction
• Business ethics
• Customers’ privacy and confidentiality

Environmental Achievements

• Decreased total hazardous waste by 32% (2022: 1.09 tonnes; 2023: 0.74 tonnes)
• Decreased total non-hazardous waste by 20% (2022: 180 tonnes; 2023: 144 tonnes)
• Decreased total water consumption by 10% (2022: 134,002 m3; 2023: 120,870 m3)
• Decreased paper consumption by 21% (2022: 7.2 tonnes; 2023: 5.7 tonnes)

Social Achievements

• Reduced overall employee turnover rate by 0.8 percentage points (2022: 4.2%; 2023: 3.4%)
• Provided 27,342 training hours to 86% of employees, averaging 15 hours per employee
• Conducted various recreational activities to cultivate employee well-being and team spirit
• Contributed 296 volunteer hours to local communities

Governance Achievements

• Established an ESG Committee and Working Group to oversee ESG matters
• Implemented an Anti-corruption Policy with zero-tolerance for bribery and fraud
• Established a Whistleblowing Policy to ensure timely reporting of wrongdoing
• Complied with all relevant laws and regulations regarding employment practices

Climate Goals & Targets

Environmental Challenges

• Increase in air emissions due to increased vehicle fleet usage
• Increase in Scope 1 and 3 GHG emissions due to increased vehicle usage and international travel
• Increase in packaging material consumption due to increased production volume
• Potential climate-related risks such as extreme weather events and changing regulations

Mitigation Strategies

• Monitoring air pollutant emissions and implementing mitigation measures (engine repair, eco-driving)
• Encouraging digital communication to minimize business travel
• Managing inventory control on packaging materials and exploring alternative materials
• Implementing contingency plans for extreme weather events
• Investing in electric vehicles and green building research

Supply Chain Management

Supplier Audits: Annual

Responsible Procurement

• Supplier Corporate Social Responsibility Code of Conduct (Environmental Protection, Health and Safety, Intellectual Property, Conflict of Interest, Human Rights)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events, flooding

Transition Risks

• Policy and legal risk, reputation risk

Opportunities

• Transitioning to low carbon economy market, energy efficiency improvements, cost savings

Reporting Standards

Frameworks Used: “Environmental, Social and Governance Reporting Guide” (Appendix C2 to the Listing Rules)

Certifications: ISO 13485:2016

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed