Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Identified risks and opportunities arising from climate change, set out carbon reduction goal and formulated relevant action plan for energy saving and emission reduction. Increased the use of renewable energies and strictly controlled waste discharge.

Social Achievements

• Success Charity Foundation provides help and support to employees in need; supports families of employees who suffer from serious illnesses or accidental injuries; participates in poverty alleviation activities in Guizhou Province; and Chairman Zhang Tiewei teaches as an off-campus tutor at Guangdong University of Finance and Economics and serves as a supervising member of the Narcotics Association of Chancheng District in Foshan.

Governance Achievements

• Adopted and complied with the code provisions as set out in the Corporate Governance Code; established Board committees with written terms of reference; implemented a Board diversity policy; adopted the Model Code for securities transactions by directors; and established an environmental, social and governance group.

Climate Goals & Targets

Environmental Challenges

• Resurgence of the pandemic, complicated and severe external economic situation, and domestic economic downturn; increased global inflation level and the COVID-19 pandemic affected demands; liquidity issues and credit risk; cyclical fluctuations in hog prices, rising breeding costs and future market trends of hogs; and the impact of the default of Evergrande Real Estate Group and other real estate developers on the Group’s customers.

Mitigation Strategies

• Adopted a “risk first, business second” approach; strengthened the empowerment of technology and finance; steadily developed traditional businesses; propelled integrated services for the Greater Bay Area; expanded and reinforced cooperation channels; closely followed national policy and continued to work hard in the field of supply chain finance; strengthened disease prevention and control ability through the modern “Hogs Farming in High Buildings” model; improved the pig breeding quality and efficiency through developing smart and standardized feeding equipment; and implemented appropriate measures in the event that there is material deterioration in the customer’s and counter guarantor’s financial circumstances.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: HKFRS

Third-party Assurance: KPMG

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Identified risks and opportunities arising from climate change, set out carbon reduction goal and formulated relevant action plan for energy saving and emission reduction. Increased the use of renewable energies and strictly controlled waste discharge.

Social Achievements

• Success Charity Foundation provides help and support to employees in need; supports education cause; participated in anti-drug promotional events.

Governance Achievements

• Adopted and complied with the code provisions as set out in the Corporate Governance Code; established Board committees; adopted a board diversity policy; adopted the Pre-IPO Share Option Scheme and the Post-IPO Share Option Scheme; established an environmental, social and governance group; implemented whistle blowing policy; complied with relevant laws and regulations.

Climate Goals & Targets

Environmental Challenges

• Insufficient corporate credit demand and escalating credit risks; domestic hog market faced prominent supply-demand imbalances, with a persistent situation of high supply and weak demand; weakening demand and escalating risks in guarantee business; complex and severe external environment, insufficient domestic effective demand, and significant risks in key areas.

Mitigation Strategies

• Developed its traditional businesses in a prudent manner; rigorously managed risks, adopted the business strategy of “ risk first, business second ”; adjusted and optimized product and business structures; pragmatically expanded operations; continuously deepened our presence in the field of fintech; paid close attention on the policy directions, selectively expanded operations, and relocated subsidiary leasing company; thoroughly explored the potential of supply chain finance, accelerated business innovation, and formed a “dual-chain linkage” model; promptly adjusted its breeding scale, reduced production capacity targets, and focused on improving the biological safety and control facilities of breeding farms; actively seized strategic opportunities, jointly promoted the layout of energy storage product selling business; strengthened risk management and selectively engaged in traditional businesses without aimless development; persistently adjusted and optimised product structure to enhance the quality of financial services; further solidified its risk control foundation, enhanced risk management and control capabilities, optimised organisational structure and selectively conducted business; strictly implemented biosecurity measures by completing upgrades and renovations within its farms, ensuring effective disease prevention and control measures, and enhancing breeding standards, while timely adjusting its breeding scale according to market conditions to appropriately resume production; continuously strengthening biosecurity measures to strive to maintain advantages and stand out in the fierce market competition; steadily advance comprehensive supply chain financial services and accelerate the establishment of a one-stop financial service platform for the entire hog breeding chain; continue to adhere to the business strategy of “ risk first, business second ” by operating traditional guarantee business with caution and also actively attempting in recovering the compensation amount incurred in the previous years to resolve non-performing assets; implement the policy of fund budget and expense saving to reduce operating costs and unnecessary expenses; closely follow market trends, adjust its business strategies in a timely manner, and tap customer needs to provide professional, efficient, and convenient financial service solutions; leveraging various favourable policies and under the premise of controllable risk, actively explore new business models to support the development of inclusive finance; focus on serving the overall high-quality development of the Greater Bay Area, seize policy opportunities, and closely integrate its resource advantages to provide distinctive financial services support for enterprises within the Greater Bay Area; prudently assess market risks, cautiously resume production as appropriate

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: HKFRSs

Third-party Assurance: Mazars CPA Limited