Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social

Environmental Achievements

• 17% reduction of paper consumption compared to the last reporting period

Social Achievements

• No material non-compliance in relation to employment noted
• No non-compliance in relation to health and safety laws and regulations was noted
• No child nor forced labour in the business operations of the Group

Climate Goals & Targets

Environmental Challenges

• various restrictions imposed by and/or agreed with the Stock Exchange and/or the SFC on their business operations
• practical difficulties and challenges in maintaining sufficient level of operations
• non-cooperation of the management of certain subsidiaries
• non-cooperation of the management of associates
• non-cooperation of the management of Entity A

Mitigation Strategies

• The Company will take appropriate steps to fully comply with the Listing Rules to the Stock Exchange’s satisfaction in order to have trading in the Company’s shares resumed
• identified an investor for putting forward a debt restructuring of the Company and provision of loans to the Company
• put forward a debt restructuring plan to the creditors of the Company
• speeding up the collection of receivables process
• tightening operating cash outflows through cutting costs and capital expenditures
• freezing headcount of the Group by pausing recruitment of new employees and replacement of resigned employees
• reducing office rental expenses by relocating the main office to a smaller office to save costs
• slowing down settlement of operating costs by fully utilising the credit period granted by suppliers and service providers, and arranging interim payments of smaller amounts instead of one-off payments of bulk amounts
• slowing down capital expenditures on computer and network system upgrades of the Group

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Suppliers were screened carefully to ensure that their quality, price, and capability meets the expectations and standards of the Group.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ESG Reporting Guide

Third-party Assurance: Not disclosed

Environmental Metrics

ESG Focus Areas

• Risk Management
• Employee Health and Safety
• Community Investment
• Climate Change
• Green Financing
• ESG Training
• Sustainable Supply Chain Management
• Green Procurement
• Anti-corruption
• Business Ethics
• Customer Data Protection
• Intellectual Property Rights
• Environmental Protection
• Resource Conservation

Environmental Achievements

• Improved efficient resource utilization by reducing energy consumption and switching off unnecessary electrical appliances.
• Utilized virtual and remote technology to reduce electricity consumption and carbon footprint.

Social Achievements

• Established employment policies to safeguard employees’ rights and comply with all applicable laws and regulations.
• Implemented a range of policies to provide a safe working environment for employees and protect them from occupational hazards.
• Provided expansive training opportunities for staff, including Continuous Professional Training (CPT) and anti-money laundering training.
• Made donations to Hong Kong Employment Development Service and The Hong Kong Council of Social Service.
• Sponsored an art technology seminar and forum.

Governance Achievements

• Reviewed and upgraded the Group’s risk management policies and systems, particularly those governing margin finance.
• Initiated a top-down review of KYC and AML policies and procedures.
• Established a clear “COVID-19 Workplace Policy”.

Climate Goals & Targets

Environmental Challenges

• Unforeseen deterioration in primary and secondary capital markets in Hong Kong.
• Continuing regulatory actions affecting technology companies.
• Widening financial problems among property companies in China.
• Repeated delay in reopening the border with Mainland China.
• Delay in obtaining regulatory approval for a responsible officer.
• Adverse market conditions due to the coronavirus pandemic and geopolitical conflict.

Mitigation Strategies

• Significantly reduced margin finance exposure.
• Initiated a top-down review of KYC and AML policies and procedures.
• Expanded product offerings to include new markets, fixed income products, fund products, and OTC derivatives.
• Entered into MOU with Mr. Guo Dan to establish a technology platform.
• Established a collaborative partnership with Digital Technology of Insurance Co., Ltd.

Supply Chain Management

Supplier Audits: 16 suppliers in Hong Kong, all passed assessment standards.

Responsible Procurement

• Safeguarding fair, open, and sustainable procurement policies.
• Suppliers must abide by all laws and regulations related to environmental protection and applicable labour standards.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme typhoons, rainstorms, and other natural disasters.
• Flooding

Transition Risks

• Stringent climate legislation and policies supporting carbon neutrality and green financing.

Opportunities

• Climate-related market opportunities, such as green financing and environmentally friendly investment.

Reporting Standards

Frameworks Used: Appendix 27 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited

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

• Climate Change
• Employee engagement, diversity, inclusion and equality
• Employment
• Employee health and safety
• Employee training and development
• Corporate governance
• Sustainability Governance
• Compliance operation and risk management
• Anti-corruption
• Business ethics
• Customer privacy and information security
• Financial technology innovation
• Protecting the rights and interests of shareholders and customers
• Service quality management
• Community development
• Social welfare and charity voluntary service
• Sustainable supply chain management and green procurement
• Green and responsible investment
• Prevention of child labour and forced labour
• Labor Standards

Environmental Achievements

• Reduced GHG emission intensity by 87.5% due to increased floor area.
• Established a 10-year carbon reduction target of reducing 10% of GHG emissions compared to 2023 levels and a target to reduce GHG emission intensity by 50% by 2050.

Social Achievements

• Organised various employee engagement activities to enhance employee well-being and sense of belonging.
• Provided a wide range of training opportunities to employees, with 100% of employees receiving training (815.35 total training hours, 7 average hours per employee).
• Donated/supported HK$121,000 to three organisations focusing on technological literacy, academic assistance, and supporting local deprived communities.
• Encouraged employee participation in volunteering events.

Governance Achievements

• Adopted new articles of association to align with Core Shareholder Protection Standards.
• Established an internal audit function to ensure effective implementation of Group-wide policies and controls.
• Invited ICAC to provide an anti-corruption seminar.

Climate Goals & Targets

Environmental Challenges

• Slowdown in IPO fundraising and increase in interest rates leading to a decrease in global markets business revenue.
• Sluggish broader financial markets and increasing interest rate environment resulting in a significant decrease in risk appetite from clients in asset management business.
• Challenging market conditions affecting insurance brokerage business revenue.
• High employee turnover rate (62.5%) due to business restructuring.

Mitigation Strategies

• Upgraded trading system to a more efficient and user-friendly platform.
• Actively establishing partnerships with global DA platforms and exchanges, offering new DA structuring products.
• Introduced treasury management and principal protected strategies to cater for the change in risk landscape.
• Began business development and infrastructure build-up work in China cross-border asset management businesses.
• Insurance brokerage business is on track to regain growth momentum as normal activities resumed following the reopening of borders.
• Recruited new employees to support the continuous growth of the Group.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Sustainability Survey for all suppliers before engagement; Priority given to eco-friendly suppliers with good ESG practices.

Climate-Related Risks & Opportunities

Physical Risks

• Increased severity and frequency of extreme weather affecting daily operations and causing equipment damage.

Transition Risks

• Increased compliance costs for climate-related regulations; Increased R&D costs for sustainable technologies; Reduced demand for less sustainable products/services; Increased competition in sustainable finance sector.

Opportunities

• Growing demand for green financing.

Reporting Standards

Frameworks Used: Appendix 27 of the Listing Rules

Third-party Assurance: Not disclosed

Awards & Recognition

• Best Technology Award in Central Bank Digital Currency (CBDC) global fast track competition