Hing Lee (HK) 2025 ESG Report: 19% Cut in GHG Emissions, Leaner Workforce, Enhanced Governance

Bulletin Express04-13

Hing Lee (HK) Holdings released its Environmental, Social and Governance Report for the year ended 31 December 2025, detailing measurable progress on emissions, resource efficiency and workforce management under a sharpened governance framework.

Environmental Performance • Total greenhouse-gas emissions fell 19.00% to 358 tonnes, driven entirely by lower indirect (Scope 2) output after electricity consumption declined 21.29% to 333,742 kWh. Emission intensity held at 0.01 tCO₂e per HKD 1,000 revenue. • Non-hazardous solid waste, mainly leftover wood, fabrics and leather, dropped 12.90% to 689 tonnes. Packaging material usage decreased 32.67% to 270 tonnes, equivalent to 9.5 kg per product set versus 10.3 kg a year earlier. • Water consumption contracted 31.27% to 3,941 m³. Fuel usage more than halved to 3,583 L. • Production sites in the PRC continue to operate with on-site sewage treatment, dust-vacuum systems and automatic UV spray-coating lines to curb wastewater, air and noise pollutants.

Social Metrics • Headcount shrank to 90 employees, down 28.00% from 2024, with a turnover rate of 28.0%. The workforce remains 73% male and 93% PRC-based. • All staff underwent training; average hours reached 14 for males and 11 for females. Senior management logged 16 hours each. • No work-related fatalities or lost days were reported, and the company recorded no significant breaches of health-and-safety regulations.

Governance and Supply Chain • The Board retains ultimate ESG oversight, supported by senior management in risk assessment and policy execution. • Anti-corruption measures include mandatory induction training and a whistle-blowing mechanism; no corruption cases occurred during the year. • The supplier base numbered 59 in the PRC. Raw-material sourcing requires Forest Stewardship Council certification and third-party safety testing to ensure compliance with lead and fire-retardant standards.

Climate-Risk Assessment • Hing Lee (HK) identified potential physical risks from extreme weather and transition risks from tighter emissions rules; no material impacts were recorded in 2025.

Stakeholder Engagement • Dialogue channels span on-site inspections, investor meetings, employee forums and customer hotlines, feeding into a structured materiality assessment that guides sustainability priorities.

The report asserts full compliance with Hong Kong Stock Exchange Appendix C2 reporting guidelines and registers no material environmental, labour or anti-corruption violations for 2025.

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