Climate Change Data

Environmental Metrics

ESG Focus Areas

• Clean Energy

Environmental Achievements

• Acquired a 100MW solar plant in Jinchang, Gansu Province

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Significant impairment loss of the vanadium mining right
• Increase in operating and administrative expenses
• Decrease in sales of fur garment and fur skins
• Global metal price drop
• Volatility and uncertainty of macro-economic conditions in the PRC and Hong Kong

Mitigation Strategies

• Decided to discontinue the operation of mining business and sold the mining business
• Focus resources towards developing clean energy business
• Reviewing trading operations and considering selling or winding down fur business
• Considering winding down fur skin business
• Closely monitor market condition and adjust investment portfolio

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

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
• Renewable Energy
• Resource Efficiency
• Employee Well-being
• Occupational Health and Safety
• Supply Chain Management
• Anti-corruption
• Community Investment

Environmental Achievements

• Reduced carbon dioxide emissions approximately (in tonnes)
• Reduced sulphur dioxide emissions approximately (in tonnes)
• Reduced nitrogen oxide emissions approximately (in tonnes)
• Reduced dust emissions approximately (in tonnes)
• Generated electricity volume of 356,940 MWh, reducing environmentally harmful by-products compared to coal-burning plants.
• Non-hazardous waste generated approximately 1.8 tonnes; hazardous waste less than 0.1 tonnes.

Social Achievements

• Established a fair, open, diverse and inclusive employment system.
• Adhered to labor laws and regulations, prohibiting child and forced labor.
• Developed comprehensive training programs for employees.
• Established a comprehensive whistle-blowing mechanism and disciplinary mechanism.
• Created career opportunities for the local community and supported local infrastructure construction and economic development.

Governance Achievements

• Complied with all code provisions of the Code on Corporate Governance Practices except for specified deviations.
• Established a Board Diversity Policy.
• Adopted the Model Code for Securities Transactions by Directors of Listed Issuers.

Climate Goals & Targets

Environmental Challenges

• Legal cases in connection with the operation of solar plant stations in the PRC.
• Liquidity pressure due to net current liabilities exceeding current assets and defaults on borrowings.
• Breach of loan covenant requiring minimum equity attributable to owners of the Company.

Mitigation Strategies

• Negotiating with lenders to extend maturity dates of financial obligations.
• Negotiating with an independent party for the disposal of a subsidiary.
• Negotiating with lenders for additional financing facilities.
• Implementing cost control measures.

Supply Chain Management

Responsible Procurement

• Strict background investigations on major suppliers.
• Annual review and evaluation of existing suppliers.

Climate-Related Risks & Opportunities

Reporting Standards

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

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Renewable Energy
• Employee Well-being
• Supply Chain Management
• Anti-corruption

Environmental Achievements

• Reduced carbon dioxide emissions by approximately 2,897 tonnes in 2020 (compared to 3,034 tonnes in 2019).
• Generated 332,990 MWh of electricity in 2020, significantly reducing harmful by-products compared to coal-burning plants.
• Minimized waste through reuse and recycling initiatives; non-hazardous waste generated was approximately 1.8 tonnes and hazardous waste was less than 0.1 tonnes.

Social Achievements

• Established a fair, open, diverse, and inclusive employment system.
• Adhered to labor laws and regulations, prohibiting child and forced labor.
• Implemented comprehensive training programs for employee development.
• Established a whistle-blowing mechanism for reporting misconduct.

Governance Achievements

• Established a comprehensive whistle-blowing mechanism and disciplinary procedures.
• No cases of corruption or misconduct were identified during the reporting period.

Climate Goals & Targets

Environmental Challenges

• Net loss of approximately HK$777,354,000 in 2020.
• Current liabilities exceeded current assets by approximately HK$1,182,868,000.
• Received two winding-up petitions.
• In default of repayments of other loans.

Mitigation Strategies

• Pursuing measures to improve liquidity and financial position.
• Seeking refinancing opportunities.
• Restructuring borrowings.
• Working to complete the disposal of Jinchang Disheng Solar Energy Company Limited.
• Negotiating with lenders for debt extension.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Strict background investigations on major suppliers; annual review and evaluation of existing suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Appendix 27 of the Rules Governing the Listing of Securities

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Toughening market conditions for solar power plants operation and the fall in performance, revenue and profitability of Jinchang Disheng and the deteriorating cash flow condition of the Group.
• Insufficient demand in the Gansu area and limitations in electricity transmission capability, resulting in Jinchang Disheng operating at a curtailment rate of 10% to 20%.
• Decreased actual rate of transaction for Jinchang Disheng’s electricity from RMB1 per kilowatt hour to approximately RMB0.85 per kilowatt hour due to government policies to alleviate curtailment.

Mitigation Strategies

• Disposal of Jinchang Disheng to generate cash inflow for debt repayment and working capital needs.
• Negotiating with the Buyer to transfer back the ownership of Jinchang Disheng if the disposal is not approved by shareholders.
• Commencing legal proceedings against the Buyer to reclaim ownership of Jinchang Disheng and claim for losses and damages if necessary.

Supply Chain Management

Climate-Related Risks & Opportunities