Product Offerings - The Group offers over 200 types of products, including over 100 dried seafood products, 60 seafood snack products, and 30 algae and fungi products[4]. ESG Commitment and Reporting - The ESG Report covers the Group's core business in Mainland China, including Xiamen Wofan Foodstuff Company Limited and Quanzhou Junfeng Supply Chain Management Company Limited[11]. - The reporting period for the ESG activities is the year ended June 30, 2024[14]. - The ESG Report is prepared in accordance with the ESG Reporting Guide under the Main Board Listing Rules of the Stock Exchange of Hong Kong Limited[13]. - The Group has adopted the principle of materiality in ESG reporting, aligning with the ESG Reporting Guide and GRI standards[19]. - The Group's management ensures compliance with ESG Reporting Guide through stakeholder discussions and internal evaluations[21]. - The Group conducts annual materiality assessments to understand stakeholder opinions and expectations regarding ESG issues[28]. Environmental Sustainability - The Group is committed to achieving environmental sustainability and respecting human rights and social culture as part of its sustainability strategies[3]. - The Group aims to balance business needs, social demands, and environmental impacts through its ESG initiatives[2]. - Significant ESG issues identified include impacts on China's business and the dry seafood market[19]. - Key ESG aspects include emissions management, resource usage, and climate change strategies[22]. - The report highlights the importance of waste management and sewage discharge in environmental aspects[22]. - Energy and water management are prioritized in resource usage[22]. - The Group emphasizes the significance of indoor air quality management and climate-related issues[22]. - The Group's total exhaust gas emissions decreased by approximately 32.1%, from approximately 3,585 kg in the eighteen months period ended June 30, 2023, to approximately 2,434 kg during the Reporting Period[37]. - The Group's total GHG emissions decreased by approximately 33.1% from about 634.90 tCO2e in PE2023 to about 431.09 tCO2e during the Reporting Period[41]. - The Group's sewage discharge decreased from about 4,360 cubic meters in PE2023 to about 3,019 cubic meters in the Reporting Period[46]. - The Group's total non-hazardous waste discharge was 16.13 tonnes, including 0.82 tonnes of paper and 15.31 tonnes of general waste[54]. - The Group's electricity consumption decreased by 30.2% during the Reporting Period compared to PE2023, totaling approximately 119.63 MWh[58]. - The Group actively adopts energy-saving measures, including using energy-efficient appliances and encouraging employees to turn off idle devices[56]. - The Group's commitment to environmental protection includes monitoring the impact of business operations and promoting a green operating environment[55]. Climate Change and Risk Management - The company is focusing on climate change risks, integrating diverse risk factors into its business strategy to mitigate impacts from climate-related events[77]. - The company has established multiple future scenarios based on the International Energy Agency (IEA) projections, particularly emphasizing the 2°C scenario[78]. - Anticipated increases in carbon pricing may lead to higher raw material procurement and production costs[79]. - Inadequate climate change measures could result in increased production interruptions and supply chain disruptions due to more frequent natural disasters[80]. - The company aims to reduce nonrenewable energy usage in operations, promoting renewable energy to achieve zero carbon emissions[81]. - A new target has been set to reduce purchased electricity in the coming years as part of its renewable energy strategy[82]. - The company believes that appropriate information disclosure and dialogue with stakeholders will provide opportunities for stable funding and sustainable corporate value increases[83]. - The risk assessment process utilizes national data and expert knowledge to identify how climate change may exacerbate existing risks or create new ones[85]. - Significant climate-related risks impacting the company's operations, supply chain, and financial planning have been identified, along with management strategies[90]. - The company continues to enhance awareness of climate change and monitor its carbon and energy footprint, although gaps remain in understanding the full impact of climate risks on operations and profits[89]. - The company plans to establish a natural disasters emergency plan to manage climate-related risks[94]. - Increased operating costs and potential revenue reductions are anticipated due to changes in precipitation patterns and extreme weather events[96]. Employee Management and Safety - The Group employed 405 employees during the Reporting Period, similar to the previous year[115]. - The Group has established a fair and competitive remuneration system, reviewing performance for salary increases and promotions annually[121]. - The Group promotes work-life balance by offering 8 working hours per day and a 1.5-hour lunch break[124]. - The Group respects and protects the legitimate rights and interests of every employee, ensuring occupational health and safety[112]. - The Group did not record any accidents resulting in death or serious injury during the reporting period, indicating effective health and safety management[133]. - No work-related injuries resulted in lost working days, and there were no incidents of death or permanent disability reported[139]. - A Safety Committee has been established to ensure the implementation of appropriate safety policies and procedures[136]. - The Group is committed to creating an inclusive work environment, ensuring fair treatment in recruitment, remuneration, training, and promotion[130]. - During the reporting period, 63% of employees received training, a decrease from 67% in the previous year[141]. Supply Chain Management - The Group cooperated with approximately 60 suppliers in Mainland China during the reporting period[150]. - The Group has established a rigorous supplier selection system, ensuring financial sustainability and compliance through field assessments[151]. - The Group strictly monitors supplier performance and conducts annual assessments, removing underperforming suppliers from the licensed list[152]. - The Group fully complies with laws prohibiting child and forced labor, with no recorded violations during the reporting period[147]. - The Group emphasizes environmental and social risk management in its supply chain, incorporating these considerations into the supplier selection process[153]. Customer Engagement and Quality Control - The Group actively controls service quality through internal controls and maintains communication with customers to meet their needs[156]. - The Group is committed to stringent quality control measures, including external testing of raw materials and products to ensure high-quality food delivery[158]. - The Group has established various channels for customer feedback, allowing easy access to contact information for suggestions and complaints[159]. - The Group has implemented strict policies for the protection of customer privacy and data confidentiality, requiring employees to sign confidentiality agreements[163]. - The Group has set up management procedures for intellectual property rights and will take legal action against infringements to protect its interests[164]. Community Engagement - The Group actively participates in community investment and social responsibility activities, promoting employee involvement in public welfare[177]. - The focus areas of community investment include education, environmental concerns, labor needs, health, culture, and sport, demonstrating the company's engagement with local communities[183]. - Resources contributed to the focus areas include both monetary and time investments, highlighting the company's commitment to community support[183]. - The company has established policies on community engagement to understand the needs of the communities where it operates[183].
中国升海集团(01676) - 2024 - 年度财报