Computime : 2019/2020 ENVIRONMENTAL, SOCIAL AND CORPORATE GOVERNANCE REPORT

July 30, 2020 at 10:10 am EDT

ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

2 0 1 9 / 2 0 2 0

CONTENTS

ABOUT THE REPORT	2
ESG MANAGEMENT	3
ENVIRONMENTAL PROTECTION
Propelling Green Product	8
Development

Environmental Management	9
Resources Consumption and	11
Conservation

Emissions Control	12
Responding to Environmental	14
Emergency Incidents

OPERATIONAL EXCELLENCE
Innovation	16
Quality Assurance	18
Customer Satisfaction	19
Data and Privacy Security	20
Sustainable Supply Chain	20
Anti-corruption	23

EMPLOYEES CARE

Talents Management	25
Employee Communication	27
Prohibition of Child Labour and	28
Forced Labour

Training and Development	28
Occupational Health and Safety	30
Community Involvement	33

LOOKING FORWARD

LAWS AND REGULATIONS

PERFORMANCE DATA SUMMARY 37

CONTENT INDEX

2 COMPUTIME GROUP LIMITED

About the Report

This Environmental, Social and Governance ("ESG") Report (the "Report") is published by Computime Group Limited ("Computime", the "Group", the "Company", "we", "us", or "our"), disclosing its management approach and performance in environmental, social and governance aspects. The Report is published in both English and Chinese. If there is any discrepancy between the two versions, the English version shall prevail.

Acknowledging its responsibility to ensure the integrity and truthfulness of the Report, the Board of Directors ("Board") has reviewed and approved this Report, confirming that, to the best of its knowledge, this Report addresses all material topics related to Computime and fairly presents its ESG performance and impacts.

Reporting Guidelines and Principles

Adhering to the reporting principles of "Materiality", "Quantitative", "Balance" and "Consistency", this Report has been prepared in compliance with ESG Reporting Guide set out in Appendix 27 to the Rules Governing the Listing of Securities (the "Listing Rules") on The Stock Exchange of Hong Kong Limited ("HKEx" or the "Stock Exchange") and the actual situation of Computime. Quantitative indicators are reviewed and presented in the "Performance Data Summary" section which gives stakeholders an overview of all data collected.

Reporting Boundary and Period

Unless otherwise specified, the Report covers operations of Computime and its subsidiaries. The reporting period is the fiscal year from 1 April 2019 to 31 March 2020 (the "Year" or "FY2020"). Certain metrics of the period from 1 April 2018 to 31 March 2019 ("FY2019") are presented for comparison.

Board approval

This Report has been reviewed and confirmed by the management team and was approved by the Board on 23 June 2020.

ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2019/2020

ESG Management

Computime Group Limited specialises in design, production and distribution of electronic and wireless technologies. As a global corporation headquartered in Hong Kong, we have 14 offices and manufacturing sites in key markets worldwide, striving to provide high-quality products and services to global brands and consumers all over the world.

ESG has been increasingly incorporated into our daily operations. Our ESG management structure is led by Legal and Corporate Affairs department who reports to the Chief Financial Officer. Engineering department, Manufacturing department, Human Resources department, Environment, Health and Safety ("EHS") team, etc., focus on issues they are assigned to manage.

During the Year, the Company was awarded the Bronze EcoVadis Medal for the EcoVadis Sustainability Assessment, demonstrating a high-level performance in environmental management, health & safety training, supplier assessment and business ethics.

"Live Smart ∙ Go Green"

"Our vision is to be a leading innovator and enabler of smart and sustainable living,

and our mission is to universalise smart and sustainable living through

technologies, products and manufacturing solutions."

- Bernard AUYANG, CEO of Computime

4 COMPUTIME GROUP LIMITED

ESG Management (continued)

Stakeholder Engagement

We attach great importance to engaging with our stakeholders. Through various channels including annual reports, annual general meeting, surveys, etc., we closely communicate with various stakeholders to understand their concerns and expectations and thereby promote continuous improvement of Computime's ESG management. In line with the reporting principle of "Materiality", we have continued to carry out the materiality assessment on ESG topics this year. Through a four-step approach of Identification, Prioritisation, Validation and Review, we identify issues that have significant influence on us, as well as the stakeholders.

01 Identification

Commissioned an independent consultancy to conduct a materiality assessment on 30 potential material topics related to Computime

02 Prioritisation

Invited Computime's management and various stakeholder groups including customers, suppliers, etc., to participate in an online survey to gauge their perception on the significance of the potential material topics

Prioritised 30 topics and constructed the materiality matrix based on two dimensions, namely "significance of economic, environmental and social impacts" and "impact on stakeholders' assessments and decision-making"

04 Review

The Company reviewed the process of materiality assessment by ongoing engagement with stakeholders

03 Validation

The consultant ensured the completeness of the material topics identified and Computime's management validated these material topics

Materiality Matrix

Based on the latest materiality assessment during the Year, we prioritised 30 potential material topics and divided them into three levels ("Highly Material", "Material" and "Not Material") in accordance with scores assigned on the basis of feedback from stakeholders and assessment of Computime's management.

Eight topics are classified as Computime's "Highly Material" topics, four of which are new to the material topics compared with the assessment results of the preceding year, namely "Respecting intellectual property rights", "Complying with environmental laws", "Anti-corruption" and "Occupational health and safety". Our management has validated and approved the list of these material topics.

Importance of impacts on Computime

Subject

Environmental

Social

Governance


Products and	Services

ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2019/2020

ESG Management (continued)

Materiality Matrix for Environmental, Social and Governance Aspects

Not Material	Material	Highly Material
		15

							22
							23
								26
							24
							25	27

							17
					7	2
				21		18
						9	29
					19	30

					6

				16	5		3
					28
				10
					4
				20
11	13	12	14		8
			1

Impacts on the stakeholder's assessment and decision making
Not Material	Material	Highly Material
No. Aspects	No. Aspects	No. Aspects
1. Addressing climate change	2.	Avoiding pollution to the air
	3.	Avoiding pollution to water
	4.	Conserving raw material
	5.	Conserving water
	6.	Minimizing waste
	7.	Providing environmentally-friendly
		products
	8.	Reducing use of packaging
	9.	Saving energy

11.	Community engagement	10.	Attracting and retaining talents	15. Forbidding the use of child and
12.	Controlling working hours of workers	16.	Managing social and		forced labour
13.	Embracing diversity at workspace		environmental risks of suppliers	17.	Occupational health and safety
14.	Employee communication	18.	Providing fair opportunities to
20.	Training and development		workers
		19.	Providing fair remuneration to
			workers
		21.	Adhering to marketing practices	22.	Anti-corruption
			that are based on factual and	23.	Complying with environmental
			unbiased information		laws
				24.	Data confidentiality
				25.	Respecting intellectual property
					rights
		28.	Investing sufficient resources in	26.	Ensuring products and services
			product innovation		quality
		29. Providing clear explanation to	27.	Ensuring health and safety of
			customers		customers/users

30. Responding to complaints in a reasonable time frame

6 COMPUTIME GROUP LIMITED

ESG Management (continued)

Responding to Stakeholders' Concerns

In the following table, we summarise actions taken by Computime in material topics during the Year:

Material Topics	Computime's actions in FY2020	Related Chapters

Forbidding the use of	•	Conducted monthly inspection to check whether child labour exists in the	Prohibition of Child
child and forced labour		Company	Labour and Forced
	•	Requested all suppliers and subcontractors to prohibit the use of child labour	Labour
		through instructions or procurement agreements
Occupational health	•	Conducted various safety training for employees and distributed Computime	Occupational Health
and safety		EHS Newsletter to enhance employees' safety awareness	and Safety
	• Stated clearly proper and effective fire and chemicals handling approaches in
		the Fire Protection Procedures and Chemical Storing and Handling Procedures
	• Arranged health checks for employees to identify and eliminate any
		occupational health issues in advance
	• Improved emergency plan by implementing the Emergency Response and
		Management Procedures
Anti-corruption	•	Forbid any form of dishonesty, disloyalty or corruption	Anti-corruption
	• Employees should deal with contractors, suppliers and customers in an
		appropriate manner
	• Encourage employees to report violations or suspected violations of internal
		and external regulations
Complying with	•	Formulated the Environmental Protection Monitoring Procedures to ensure all	Environmental
environmental laws		pollutants to be discharged externally are regularly monitored for compliance	Protection
		with laws, regulations and company standards
	• Installed an online monitoring system for daily monitoring of the operation of
		exhaust gas treatment facilities
	• Established a Hazardous Waste Management Committee to ensure legal
		disposal of hazardous waste
Data confidentiality	•	Complied with relevant laws and regulations	Data and Privacy
	•	Established Global Data Protection and Privacy Policy	Security
	• Collected only related personal data
	• Communicated openly and honestly with employees or customers when
		processing personal data that may impact their privacy
	• Took reasonable administrative, technical and physical security measures
		("information security controls") to protect personal data
	• Regularly evaluated and tested the effectiveness of information security controls
Respecting intellectual	•	The Code of Conduct specifies measures to protect Computime's intellectual	Innovation
property rights		property rights
	• Owned 37 patents, 34 in the stage of application
Ensuring products	•	Held various quality management systems certifications, and domestic and	Quality Assurance
and services quality,		international product certifications
Ensuring health and	•	Set up strict product performance monitoring measures, identifying non-
safety of customers/		conforming products in time
users	•	Reliability laboratory has the quality assurance test facilities, covering the testing
		of products sold in Europe and North America

ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2019/2020

Environmental Protection

Environmental

Protection

Computime is committed to providing resource-saving solutions to society, while rigorously managing the environmental impacts from its business processes.

In this Section:

Propelling Green Product Development | Environmental

Management | Resources Consumption and Conservation |

Emissions Control | Responding to Environmental Emergency Incidents

Key Performance:

Replaced with energy-saving air conditioners,

saving 23,000kWh of electricity annually

Returned the used plastic boxes to the supplier for recycling,

achieving recovery rate of 98%

8 COMPUTIME GROUP LIMITED

Environmental Protection (continued)

Propelling Green Product Development

As a global player in Internet of Things ("IoT") and one of the innovative smart solution providers, Computime has always designed and manufactured its products with energy saving and environmental protection in mind. We endeavour to develop innovative automated home appliances to minimise domestic consumption of energy and other natural resources.

Our house brand SALUS provides integrated solutions consisting set of software and hardware that covers heating, ventilation and air conditioning solutions. Most SALUS products are able to intelligently control the use of home appliances for reducing domestic electricity consumption. During the Year, we introduced new energy- saving features that can assist hospitality services and multi-property management companies to further reduce energy consumption and achieve greater cost control.

Our products are designed to comply with applicable energy-related regulations, and to comply with the European Union Waste Electrical and Electronic Equipment ("WEEE") Directive. Our products are easy to disassemble so that useful materials can be recovered from the obsolete products.

QUANTUM Thermostat Supports the Realisation of Smart Home

The QUANTUM thermostat is the latest innovative addition to the SALUS portfolio. By connecting with SALUS Smart Home, users can control their heating, either locally or from anywhere via Smartphones, Tablets or PCs. With its unique super-thin shape (10mm thickness) and modern design, it perfectly matches homeowners' interior design requirement.

QUANTUM's features and functions have been designed to reduce energy consumption. It meets the EU ErP Rating IV, which means better efficiency rating of the whole system and total energy cost reductions.

We produce our products with care. Maximising reduction of energy loss in homes and exploitation of the natural environment are always at the heart of everything we do.

Additionally features within the Smart Home system, taking safety of users in mind, the SALUS Smart Home system will detect and notify of many undesirable situations within your home, for example water leakage, smoke detection, and notification of open windows and doors when users are away from home giving comfort and peace of mind.

ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2019/2020

Environmental Protection (continued)

Environmental Management

While developing and promoting application of green products, Computime attaches great importance to the environmental management of its products' production processes. Not only do we produce green and energy- saving products, but also make every effort to reduce the environmental impacts arising from the production processes. Computime has put in place an environmental policy and a Quality & Environmental Health and Safety Manual. All production plants are certified with the ISO 14001 Environmental Management System. EHS team is set up in each plant to supervise the implementation of environmental policies.

Computime identifies environmental factors that have significant impacts or are expected to have significant impacts on its business activities. We have formulated the Environmental Factors Identification and Evaluation Management Procedures and Environmental Policy, Targets, Indicators and Environmental Management Program Procedures to stipulate specific steps to be taken for implementing relevant control measures. Each department carries out identification and evaluation at least once a year. Relevant departments are responsible to establish target indicators and management methods for the following year on the key environmental factors and regularly review the achievement of the targets.

Comply with laws and regulations, and customers' environmental requirements

Promote	Protect the
environment,
environmental
conserve
knowledge to
resources, reduce
company personnel
energy
and raise
consumption, and
awareness of
promote resource
environmental
recovery and
protection
recycling
Computime's
Environmental
Policy

Ensure effective	Prevent and control
operation of the	pollution and
environmental	dangerous sources,
management	reduce or eliminate
system and	natural emissions
continuously	of pollutants and
improve the	any kinds of
performance	accident

10 COMPUTIME GROUP LIMITED

Environmental Protection (continued)

When new products, new projects, or new equipment are introduced or when major changes in production processes or environmental laws and regulations are likely to be taken place, we timely re-identify and evaluate the environmental factors.

During the Year, we identified the following key environmental factors and have established corresponding comprehensive implementation plans and indicators for each key environmental factor.

Key
Environmental
Factors	Targets	Implementation Plans	Indicator	Progress

Electricity	Conserve energy	Implement an energy management system
consumption
		Improve the fresh air system of the tin
		furnace to reduce workshop negative
		pressure and reduce the escape of cold air
		from air conditioners

Save 760,000 units of electricity annually	Ongoing
compared to basic energy consumption
Save 100,000 units of electricity annually	Completed
compared with the original system

		Implement a real-time power monitoring	Save 100,000 units of electricity annually	Ongoing
		system	compared with the original system
		Install false ceiling along the production line	Save 72,900 units of electricity annually	Ongoing
			compared to before renovation
		Utilise hot exhaust air of air compressors to	Save 54,000 units of electricity annually	Ongoing
		heat water for dormitory use	compared to before renovation
		Replace with energy-saving air conditioners	Save 23,000 units of electricity annually	Completed
			compared to the original system

Use of	Prevent pollution	Assign dedicated personnel to manage the	Eliminate the use of hydrochlorofluorocarbons	Ongoing
halogenated		refrigerator, ensure its usage within the	("HCFCs")
hydrocarbon		national prescribed time limit, timely respond
		to abnormal situations and replace the retired
		refrigerator with an environmentally friendly
		model

Waste discharge	Reduce solid waste	Send back used plastic boxes from production	Achieve recovery rate of 98%	Completed
	discharge	lines to the warehouse in time and return to
		the supplier for recycling
		Distribute equipment cleansing and wiping	Achieve empty bucket recovery rate of 99%	Completed
		agent only to staff who can present the
		empty bucket

During the Year, we were not aware of any non-compliance of relevant laws and regulations1 that has a significant impact on Computime relating to air and greenhouse gases emissions, discharges into water and land, and generation of hazardous and non-hazardous waste.

List of applicable laws and regulations available in "Laws and Regulations".

ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2019/2020

Environmental Protection (continued)

Resources Consumption and Conservation

The composition of our energy usage includes electricity and natural gas used in plants, offices and staff dormitories, as well as fuels consumed by company vehicles. The EHS team is responsible for implementing energy management work, regularly inspecting and maintaining energy-using equipment to ensure the equipment is in good condition. Through our internal publication Computime EHS Newsletter, we have informed our employees of work requirements related to environmental protection.

During the Year, the total energy consumption was 33,864 MWh, of which electricity consumption amounted to 32,535 MWh, accounting for 96.1% of energy consumption. The energy consumption intensity was 10.38 MWh per million Hong Kong dollars revenue, 8.58% increase compared to that of FY2019.

Energy consumption (MWh) and intensity in FY2019 and FY2020

	FY2019	FY2020
Electricity consumption (MWh)	31,435	32,535
Natural gas consumption (MWh)	0.56	2262
Vehicle fuels consumption (MWh)	1,274	1,103
Intensity (MWh per HK$ '000,000 revenue)	9.56	10.38

We focus on improving the efficiency of use of resources in our daily operations by adhering to one of key priorities in our environmental policy - "Conserve resources, reduce energy consumption, and promote resource recovery and recycling".

• Switch off electrical and electronic appliances when they are not in use

• Set air conditioning temperature at not less than 26 degrees in summer and not more than 20 degrees in winter

• Switch off the lightings when daylight is sufficient during day time

To manage energy consumption in the course of operation efficiently, we engaged a professional consultant which is a third party to assist the Company to build an energy management system. During the Year, we have taken a number of completed and on-goingenergy-saving measures, including the application of heat pumps, air compressor exhaust heat recovery, replacement of LED lightings and other retrofits. Among them, the air compressor exhaust heat recovery project in our Dongguan plant was completed during the Year. The air compressor exhaust heat is used to heat up dormitory water, reducing energy consumption of the heat pump when producing hot water for domestic use. It is expected to reduce the heat pump electricity consumption by 54,000 kWh per year. Its production line is undergoing a ceiling installation project which will reduce one-third of space after completion and hence will reduce electricity consumption of air conditioners.

Natural gas data from our overseas offices are collected starting from FY2020.

12 COMPUTIME GROUP LIMITED

Environmental Protection (continued)

During the Year, Scope 1 direct greenhouse gas ("GHG") emissions were 350 tonnes of carbon dioxide equivalent (tCO2e), and Scope 2 indirect greenhouse gas ("GHG") emissions were 27,064 tCO2e. The total greenhouse gas ("GHG") emissions were 27,414 tCO2e, with an intensity of 8.40 tCO2e per million Hong Kong dollars revenue.

Major part of water consumption is attributable to plants and staff dormitories. Water usage from production includes air-conditioning cooling water, exhaust gas processing water, etc. We conduct daily inspections on water pipes, faucets and valves, and promote water-saving philosophy to our employees. A water-saving project was implemented during the Year, in which a new water treatment system was installed to reuse production water as cooling water for the plant's centralised air conditioning, reducing consumption of fresh water.

Total water consumption and intensity in FY2019 and FY2020

	FY2019	FY2020

Total water consumption (m3)	305,526	351,063
Intensity per HK$ '000,000 revenue (m3)	89.33	107.6

The total water consumption of Computime for the Year was 351,063 cubic meters, with intensity of 107.6 cubic meters per million Hong Kong dollars revenue, a 20.46% increase compared to that of FY2019. There was no issue in sourcing water that is fit for purpose.

We encourage employees to practise green office initiatives, including setting up printers for double-sided printing, reducing printing volume and single-sided paper printing, reusing envelopes, and avoiding the use of disposable products.

Emissions Control

Computime regularly reviews environmental impacts during the production process, striving to reduce emissions of air pollutants, wastewater, waste and noise. We have formulated the Environmental Protection Monitoring Procedures to ensure that all pollutants to be discharged externally are regularly monitored for compliance with laws, regulations and Company standards. Environmental engineers in the EHS team are responsible for formulating and implementing the Environmental Emission Monitoring Plan, which includes internal, external and government department monitoring. The person-in-charge of the Monitoring Plan is required to review and update the Monitoring Plan and points of monitoring at least once a year, or whenever there are major changes in production processes or launch of new regulations.

ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2019/2020

Environmental Protection (continued)

An online monitoring system has been installed at the plant's exhaust gas outlet, to facilitate daily monitoring of operation of the exhaust gas treatment facilities. During the Year, we continued to push air pollution reduction and have completed the installation of 5 sets of boiler exhaust gas treatment systems. An ultraviolet ("UV") photolysis facility is also added to the organic pollutant treatment system to further reduce emissions of organic pollutants. During the Year, our air emissions included toluene from our plants' production, amounting to 590 kg, as well as sulphur oxide, nitrogen oxide and particulate matter from vehicle exhaust, which amounted to 1.80 kg, 85.61 kg, and 6.58 kg, respectively.

Regarding wastewater discharge, Computime has set up wastewater treatment facilities in the plants. All industrial wastewater is treated and reused instead of being discharged externally. Domestic sewage is legally discharged into the municipal sewerage network.

We have set up a Solid Waste Management Procedure to manage and control processes of waste generation, storage, transportation, recycling, and disposal. Solid waste is categorised into hazardous waste, general waste and domestic waste, which are collected and handled separately. We have established a Hazardous Waste Management Committee to organise and formulate a hazardous waste management system, ensuring that hazardous waste is managed and disposed in a manner compliant with applicable laws.

Hazardous Waste

Waste listed in the National Hazardous Waste Inventory or identified as hazardous solid waste according to the national hazardous waste identification standards and identification methods
Use hazardous waste collection barrels or original packaging for storage, with hazardous waste labels displayed
Store hazardous waste in specific waste warehouses and record the inventory
Select qualified hazardous waste disposal companies and transporters to transfer and dispose of hazardous waste

General Waste

Solid waste not listed in the National Hazardous Waste Inventory or identified as non- hazardous solid waste according to the national hazardous waste identification standards and identification methods
Use garbage bins to collect general industrial waste
Classify and transfer waste according to categories of metal, wood, plastic, electronic appliances and paper
Entrust qualified suppliers to recycle the recyclables, and cleaning workers in the industrial area to clean up the non-recyclable waste

Domestic Waste

Solid waste generated in daily activities or activities that provide services for daily life, and solid waste that is deemed to be domestic waste by laws and administrative regulations
Use household garbage bins for collection
Cleaning workers in the industrial area to clean up and transport

14 COMPUTIME GROUP LIMITED

Environmental Protection (continued)

During the Year, Computime generated 88.53 tonnes of hazardous waste and recycled 369 tonnes of non- hazardous waste. To reduce waste generation, we cooperate with suppliers to return the plastic boxes of raw materials for recycling. During the internal production process, we recycle empty barrels for raw materials distribution.

Hazardous waste generation (Tonnes) in FY2019 and FY2020

	FY2019	FY2020
Waste mineral oils	2.92	3.84
Organic solvent waste	33.92	30.51
Organic resins waste	20.75	40.28
Mercury, Lead and Zinc waste	0.14	0.11
Other hazardous waste	37.66	13.80
Total	95.39	88.54
Non-hazardous waste recovery (Tonnes) in FY2019 and FY2020

	FY2019	FY2020
Paper	641	190

Plastics	139	179
Total	780	369

Responding to Environmental Emergency Incidents

We will continue to improve the environmental management system and implement various environmental protection measures, focusing on our environmental accident response framework. The Accident Management Procedure sets out the emergency response plan for environmental accidents such as chemical leakage and environmental discharges that exceed limits.

As the impacts of climate change are emerging progressively, we regularly check and clear the drainage channels and cooperate with the local government's drainage system upgrade, reducing the risk of flooding caused by heavy rains.

ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2019/2020

Operational Excellence

Operational

Excellence

Committed to pursuing operational excellence, we have been focusing on Research and Development and quality management to create value for our customers.

In this Section:

Innovation | Quality Assurance | Customer Satisfaction | Data and

Privacy Security | Sustainable Supply Chain | Anti-corruption

Key Performance:

4	Over 200
Engineering centres	electronics, software and mechanical engineers

Own 37	34
patents	patents are in the stage of application

Cooperate with over 700suppliers

16 COMPUTIME GROUP LIMITED

Operational Excellence (continued)

Innovation

By transforming itself into a provider of Smart Solutions, Computime is striving to offer premium and energy-efficient solutions to end-users. The Research and Development ("R&D") department is responsible for evaluating new technologies and platforms in the field of intelligent control, ensuring that alternative technological choices are available to customers when they put forward a product development request. At present, we have engineering centres in Silicon Valley, Cincinnati, Hong Kong and Shenzhen, with over 200 electronics, software and mechanical engineers worldwide.

Engineering department benefits from the output of R&D department which enables them to identify potential problems and their corresponding root cause when producing new products, achieving time-efficient R&D and production processes.

Consumer Technology Association of the United States

- CES 2020 Innovation Award

During the Year, Computime's Wireless Gateway Thermostat was awarded the CES 2020 Innovation Award by the Consumer Technology Association ("CTA"), the largest technology trade association in North America, demonstrating our capabilities in product design and technological innovation.

Our winning product, Wireless Gateway Thermostat, integrates thermostat and gateway function with home IoT console and ZigBee gateway. With its IoT cloud connectivity along with the built-in Alexa Voice Service that enables users with a simple and instant control over all home IoT devices, the thermostat is able to offer total home IoT solutions with intelligent monitoring and control, all under the smart, modern, energy efficient design.

ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2019/2020

Operational Excellence (continued)

Most Valuable Services Award in Hong Kong 2019

- Smart IoT Leaders

In July 2019, Computime was awarded the Most Valuable Services Award in Hong Kong 2019 - Smart IoT Leaders presented by the Mediazone Publishing Group, a globally renowned media consultancy, recognizing our contribution to promotion of smart living via our innovative IoT solutions.

Computime's IoT services stood head-and-shoulders above the competition for its advanced technology, product quality and seamless integration into a smart living environment for everyday consumers.

Compatible with all major heating/cooling systems, the Smart Comfort System enables homeowners to maintain comfortable indoor temperature in specific rooms only when occupied, ensuring maximum comfort while minimizing energy consumption. Coupled with an intuitive app, voice control, and sophisticated AI algorithms, the Smart Comfort System provides homeowners a warm, secure, and energy-efficient home that significantly lowers the overall cost of ownership while seamlessly integrates into major smart living ecosystems currently available in the market.

Computime attaches great importance to protection of intellectual property rights and requires all employees to safeguard the Company's intellectual property, including inventions, technical information, product design, manufacturing expertise, etc., in compliance with the Code of Conduct. We currently own 37 patents and 34 are in the stage of application.

During the Year, Computime has strictly complied with all relevant laws and regulations3 related to intellectual property rights and was not involved in any litigation related to intelligent property infringement.

List of applicable laws and regulations available in "Laws and Regulations".

18 COMPUTIME GROUP LIMITED

Operational Excellence (continued)

Quality Assurance

We are committed to providing quality products that meet customers' needs whilst pursuing the goal of zero defects. We have obtained accreditations from several quality management certifications for Computime's operations, including ISO 9001 Quality Management System, IATF 16949 Automotive Quality Management System and ISO 13485 Medical Product Quality Management System. In addition, our products have been certified by various domestic and international certification organisations.

International Certifications	China Compulsory Certification ("CCC")
• CE Certification, European Union	• China Quality Certification ("CQC")

UL Certification, United States
SEMKO Certification, North Europe
GS, VDE and BZT Certification, Germany
SEV Certification, Switzerland
SAA Certification, Australia

Computime's product certifications

Through a series of product quality measurement and monitoring, including inspection of incoming raw materials, inspection during the production process and final inspection, we identify non-conforming products in time to ensure product quality.

Inspection of incoming raw materials

Verify the conforming certification or quality of all incoming materials according to sampling plans and inspection instructions

Inspection during the production process

Implement process monitoring and control to ensure products meet specified requirements
Product shall not be transferred to the next process flow until the required inspection and test have been completed
Nonconforming products shall be properly identified and disposed

Final inspection

Quality Department shall inspect samples from finished products
When inspection failed, the product will be sent for rework. Re-inspection is needed after products are rejected

Monitoring and measurement of products

We have equipped our Shenzhen-based reliability laboratory with an entire set of quality assurance equipment which covers the testing of all products sold in our two major markets - Europe and North America. The laboratory is accredited for the EN/IEC 60730-1 and EN/IEC 60730-2-9 standards. The qualification allows Computime to internally conduct thermostat testing according to standards, validating the Company's excellent quality control and professional testing capabilities.

ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2019/2020

Operational Excellence (continued)

Customer Satisfaction

Our business managers are responsible for day-to-day communications with our OEM/ODM customers, i.e. major global electronics brands and products manufacturers, understanding their values and opinions, whereas customers of SALUS (including professional wholesalers and distributors) are supported by our SALUS subsidiaries. By understanding the customers' requirements and to satisfy them by offering quality products and services at competitive prices, we strive to improve customer satisfaction on an ongoing basis.

Computime has set up a Complaint Handling Procedure that standardises the methods for handling customers' feedback and complaints. On receiving customers' information such as feedback or complaints, quality engineers review and determine the nature of the information. If it is judged as a complaint, Computime takes the following measures for correction and improvement, ensuring proper handling of the relevant cases and satisfying our customers.

Initial Assessment

Failure Analysis

Feedback to Customer

Return & Rework

Quality engineers (QE) have to work with the team to evaluate case and implement the containment action within 24 hours to reduce the impact of finished goods in stock, work in process and product delivery
QE send the temporary containment action to customer

1. QE and test engineers (TE) conduct a failure analysis of defective samples to identify the root cause and determine corrective and preventive

actions (CAPA)

2. QE write up the failure analysis report and seek approval from quality assurance (QA) manager

QE send the failure analysis report to customer as a formal reply
QE need to follow up on the containment action and CAPA

If rework is required, Strategic Business Unit will authorise customer to return the material
Production responsible for the rework accordingly as plan

20 COMPUTIME GROUP LIMITED

Operational Excellence (continued)

Data and Privacy Security

Our business entities are located in various countries and regions across the globe, including Europe, the United States, Malaysia, Mainland China and Hong Kong, etc. We have established the Global Data Protection and Privacy Policy to effectively protect the data and privacy security of our customers, employees and business partners, requiring all our parties involved in handling of personal data and the related privacy issues to cooperate with Computime in compliance with the related laws and regulations4 applicable in locations where we have operations.

Computime only collects relevant personal data and communicates with customers and employees openly and honestly when processing their personal data that may impact their privacy. To ensure data security, Computime uses reasonable administrative, technical and physical security measures ("information security controls") to protect personal data from unauthorised access, destruction, modification, disclosure, etc. We regularly evaluate the effectiveness of information security controls, ensuring confidentiality and integrity of the system and data. Disciplinary action or business sanctions including termination of employment or third-party agreement are adopted as appropriate if employees, contractors or suppliers breach policies relating to data protection.

During the Year, we were not aware of any non-compliance of relevant laws and regulations that has a significant impact on Computime relating to health and safety, advertising, labelling and privacy matters relating to products and services provided and methods of redress.

Sustainable Supply Chain

Aiming to gradually build a stable yet green supply chain, we integrate the concept of green procurement into supply chain management and require our suppliers to comply with the requirements concerning social and environmental responsibility.

List of applicable laws and regulations available in "Laws and Regulations".

ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2019/2020

Operational Excellence (continued)

Supplier Management

We have established the Supplier Code of Conduct, listing requirement concerning suppliers' social and environmental performance and behaviours and covering four areas of labour, environment, corporate management and health and safety. Suppliers are responsible for presenting supporting documents to Computime in order to ensure their compliance with related requirement stipulated in the Supplier Code of Conduct.

Corporate Social Responsibility Requirements for Suppliers

Labour	Environment	Operation	Health and Safety

•	Anti-harassment	•	Comply with	•	Anti-corruption	• Provide a safe and
•	Anti-discrimination		international	•	Set up sustainable	healthy working
•	Fair compensation		environmental		business plans	environment
	and welfare		regulations, including	•	Comply with conflict-	• Establish an
•	Reasonable working		RoHS Directive,		free minerals policies	occupational safety
	hours		REACH Regulation,			management system
•	Prohibit child labour		Halogen-free
	and forced labour		initiative, etc.
•	Freedom of	•	Comply with
	association and		environmental
	collective bargaining		requirement of the
			locations where they
			operate
		•	Minimise
			environmental
			pollutions
		•	Establish an
			environmental
			management system

We conduct audits for new suppliers and annual audits for approved suppliers. Suppliers are expected to conduct a self-evaluation on their own management level, R&D competence, production and quality inspection level, materials management and employee protection and then fill in the Computime Supplier's Qualification Audit Report, which is verified by Computime. We classify the qualified suppliers according to their scores. As of 31 March 2020, we have a total of 735 suppliers, around 85% of whom are located in China.

22 COMPUTIME GROUP LIMITED

Operational Excellence (continued)

Tier 1

Supplier

Tier 2

Supplier

Tier 3

Supplier

Tier 4

Supplier

Conflict Minerals Management

Score ≥ 90%
Passed assessment
- Score: 70%~89%
- Acceptance
- Passed assessment
- - Score: 50%~69%
  - Conditional acceptance

• Need to revert with rectification plan to Computime within 2 weeks upon receipt of the assessment report. Follow-up is required to monitor the progress

Score < 50%
Disqualify

Computime has formulated a conflict minerals policy to ensure only conflict-free materials are sourced. We assess our suppliers in the context of conflict minerals, requiring suppliers not to source conflict minerals from the Democratic Republic of Congo or any adjoining countries. Supplier should provide due diligence report using the Conflict Minerals Report Template ("CMRT"), standardised reporting template developed by the Responsible Minerals Initiative ("RMI").

Green Procurement

Conforming to the maturing national policy related to green procurement and satisfying customers' expectations of environmental-friendly products, we have integrated the green concept into procurement management, which includes considering both economic and environmental benefits such as environmental protection and resource conservation during procurement, strengthening our efforts in environmental stewardship.

Our Green Procurement Procedure specifies green-procurement-related responsibilities of the Engineering department, Procurement department, and other relevant departments. Computime requires each department to opt for energy-saving and environment-friendly products with national certification when applying for procurement. Procurement department is responsible for screening green suppliers and supervising the fulfillment of green procurement contracts. If the supplier violates the agreed environmental protection requirements specified in the procurement order, Computime has the right to suspend the procurement of related products and services.

ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2019/2020

Operational Excellence (continued)

Anti-corruption

We are committed to creating a corporate culture with integrity and transparency. Actions of Computime and its employees are subject to the internal Code of Conduct as well as related laws and regulations5. Any form of misconduct, impropriety or unethical behaviour is strictly forbidden and is required to be timely reported to concerned departments and authorities. According to the Code of Conduct, our employees are required to deal with contractors, suppliers and customers in an appropriate manner to avoid corruption, bribery, money laundering, or any illegal behaviour that happens. Other stipulations include but are not limited to:

Soliciting an advantage from clients, contractors, suppliers or any person in connection with Computime's business is strictly forbidden.

Employees should report to their immediate supervisor and Human Resources department after accepting an advantage.

Employees should avoid situations which may lead to actual or perceived conflicts between personal interests and those of the Company.

Employees should decline any advantage that would affect their objectivity, induce them to act against Computime's interests, or lead to questions or complaints of bias or impropriety.

Offering bribes to any person or company for the purpose of obtaining or retaining business is strictly prohibited.

Seeking or accepting gifts or any form of compensation from suppliers, customers or other doing business, or seeking to do business with the Company is strictly prohibited.

To timely investigate and handle any non-compliance, Computime has established a comprehensive whistleblowing policy. Employees are responsible for reporting violations or suspected violations of internal and external regulations. Confidentiality is ensured in the whistleblowing process, effectively protecting whistleblowers from any retribution against them. We also organise anti-corruption and anti-bribery training to enhance employees' awareness of integrity and honesty.

During the Year, we were not aware of any non-compliance of relevant laws and regulations5 that has a significant impact on Computime relating to bribery, extortion, fraud and money laundering, and we are not involved in any corruption cases.

List of applicable laws and regulations available in "Laws and Regulations".

24 COMPUTIME GROUP LIMITED

Employees Care

Regarding people as our greatest assets, we strive to create a safe, equal and diversified working environment where employees can excel and grow together with Computime.

In this Section:

Talents Management | Employee Communication | Prohibition

of Child Labour and Forced Labour | Training and Development |

Occupational Health and Safety | Community Involvement

Key Performance:

Over	Over
97%	76,000
employee training coverage	training hours

32	648
work-related incidents	lost days due to work injuries

ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2019/2020

Employees Care (continued)

Talents Management

Computime is committed to providing equal employment opportunities in recruitment, remuneration, training and promotion regardless of race, national origin, religion, gender, marital status, age, sexual orientation, disability or veteran status. Competition for talent is intensive, especially in the electronic industry. By putting in place a comprehensive and merit-based employee selection and assessment process, Computime continues to attract talents by improving remuneration and welfare benefits, organising training, etc. We recruit talents through different ways such as internal referral and internship programmes, based on the needs of different projects and businesses.

Employee Composition

As of 31 March 2020, the Company employed a total of 4,984 employees with profiles as follows:

By Gender

	1,922
	Male
3,062	Female

By Age

	197
	1,293
	<30
3,494	30-50
	>50

By Geographical Location

By Function

202 142 92

4,548

Europe and the US

Mainland China

Hong Kong

Malaysia

315

970

3,699

Management

Staff

Front-line Workers

26 COMPUTIME GROUP LIMITED

Employees Care (continued)

Employee Rights and Welfare

Computime is committed to protecting employees' rights and has zero tolerance to unethical labour practices. Our Employee Handbook and Code of Conduct stipulates clearly regarding employees' rights, working conditions, training and development, benefits and remunerations, and health and safety. We respect the fundamental rights of employees such as freedom of association and the collective bargaining rights. Employees are empowered to delegate the authority to represent their interests in a responsible way. Opinions and concerns can be expressed through representatives in the labour union.

We acknowledge customers' expectations on managing working hours of employees. The working hours are now controlled at a level agreed by our key customers. Employees work overtime only if required and on a voluntary basis. Overtime work during rest days and holidays is compensated by overtime pay and compensation leave in accordance with local employment laws.

Computime respects each individual by creating an equal and diversified working environment free of any discrimination or harassment. We strictly forbid any forms of discrimination. Adhering to the Employee Handbook, our human resources policy and employees' rights and responsibilities are well communicated within the Company, ensuring responsible behaviours and protection to employees' rights. To improve our competitiveness and keep our employees motivated, we offer fair and competitive remuneration packages as follows:

Salary and bonuses	Holidays	Insurance	Transportation
•Salary that exceeds	•Statutory holidays	•Medical and dental	•Company shuttle coach

local minimum wage	•Rest days	insurance	arrangement

•Performance bonuses	•Maternity leave	•Life insurance
•Discretionary bonuses	•Paternity leave	•Accident death and
		disablement
		•Business travel
		insurance

ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2019/2020

Employees Care (continued)

Employee Communication

Computime strives to maintain effective and open communication with its employees. We provide employees with timely information on business results, product performance, customer relations and employee achievements. Communication channels are designed to encourage open dialogue with employees to understand their concerns.

We facilitate bilateral communication in several ways, such as announcing company events and activities through the bulletin board and collecting employees' opinions through the suggestion box. Regular employee activities and meetings are organised, enabling employees to strengthen internal communication and achieve work-life balance. During the Year, Computime organised different types of employee activities including Mid-autumn Festival celebration, Christmas Party, talent show and table tennis competition.

Long Service Awards Presentation Ceremony

Talent Show

Table Tennis Competition

28 COMPUTIME GROUP LIMITED

Employees Care (continued)

We recognise the importance of labour unions for both employees and the management to express their concerns. Labour representatives are elected by union members at the factories. A committee is formed by the factory management to meet with labour representatives, addressing employees' concerns. Dedicated personnel have been assigned to follow up on the requests. During the Year, we replaced the beds in the dormitory and improved the quality of meals provided in response to employees' requests.

Prohibition of Child Labour and Forced Labour

Computime strictly prohibits the use of child and forced labour across its operations. We comply with relevant local and international laws and regulations for prevention of use of child labour of age under 16 and the prevention of any forced labour. To prevent the employment of child labour, we have put in place a standard working instruction that describes remedies to be implemented if use of child labour is discovered. During the recruitment process, all candidates must present their identification documents in compliance with the statutory age requirement.

The employment contract is voluntary and is signed by both the employer and the employee. Monthly inspection is conducted by the Human Resources department to check whether child labour exists in the Company. In addition, we request all suppliers and subcontractors to prohibit the use of child labour through explicit instructions or purchase agreements issued by the Procurement department, which also serves as one of the criteria for selection and evaluation of suppliers and subcontractors.

During the Year, Computime was not aware of any non-compliance of relevant laws and regulations6 that has a significant impact on Computime relating to compensation and dismissal, recruitment and promotion, working hours, rest periods, equal opportunity, diversity, anti-discrimination, and other benefits and welfare, and the prevention of any child and forced labour. There were no reported cases of child or forced labour in the Year.

Training and Development

Computime is committed to providing practical training and career development opportunities to its employees, necessary to equip them with necessary knowledge and skills, and for staying competitive in a constantly evolving business landscape. We have formulated an annual training plan according to the needs of Computime's development, employee job qualifications, questionnaires on training needs and the Personal Development Management System ("PDMS") for personal development planning.

List of applicable laws and regulations available in "Laws and Regulations".

ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2019/2020

Employees Care (continued)

We offer a wide range of training programmes, from induction training to on-the-job training, to employees at all levels. New recruits or employees new to specific tasks are required to receive additional trainings. For example, employees are required to receive basic knowledge training if their job duties involve a medical workshop. Technical training is provided to employees involved in production and quality management of medical and automotive products, while designated assurance training is arranged for employees who perform installation and operational work related to medical devices, enabling them to acquire relevant technical skills and knowledge. Employees in special positions are also required to pass the training and receive certification before they are on-board.

Induction Training for New Staff

On-the-job Training

•Company introduction •Corporate culture •Code of conduct •Employee handbook •Regulations and policies •Safety knowledge

•Skills update

•Use of quality management tools •English courses

•EIMS training

We encourage qualified and experienced employees to serve as internal lecturers to share personal knowledge, experience and skills and facilitate internal knowledge transfer, creating a positive learning atmosphere in the Company. To further develop a more comprehensive learning and development environment, employees are encouraged to join external training courses according to their work needs. Participation in job-related training, if initiated by Computime, is eligible for full subsidy. Self-initiated programmes may also be granted for full subsidy after the employee has passed probation. During the Year, a total of 4,852 employees attended training programmes with total training hours of 76,209 hours.

Average Training Hours Completed (Hours)
By Gender
Male	7.35
Female	20.27
By Function
Management	9.69
Staff	7.90
Front-line Workers	17.71

30 COMPUTIME GROUP LIMITED

Employees Care (continued)

Occupational Health and Safety

Safety Management

Adhering to the principle of "Safety and Prevention First", Computime views employees' safety as one of the top priorities and is committed to providing them with a healthy and safe workplace. We have Occupational Health and Safety ("OHS") Management Policy in placed to enhance safety management and ensure safety at work. To minimise potential health and safety risks at operations, we have appointed Factory Safety Officers and Safety Champions for each factory building and floor to oversee the execution of the OHS management policy.

To comply with relevant laws	To enhance safety level by
and regulations, and meet	continuously improving the
customer requirements related	working environment and
to OHS	eliminating safety risk factors

OHS

Management

Policy
	To provide sufficient OHS
To ensure the efficiency of the	training to our employees,
OHS management system and	making them capable of
its continuous improvement	protecting themselves from
	health and safety risks

Factory Safety Offices

•Conduct working environment inspection in factories •Arrange induction training for new employees

•Check and ensure firefighting facilities such as fire escapes, alarms and extinguishers are properly maintained according to relevant national regulations

Safety Champions

•Execute safety-related procedures

ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2019/2020

Employees Care (continued)

During the Year, there were 32 work-related incidents and the number of lost days due to work injuries was 648. There were no work-related fatalities reported.

We strictly comply with relevant laws and regulations7 related to occupational health and safety. During the Year, we were not aware of any non-compliance of relevant laws and regulations that has a significant impact on Computime relating to the provision of a safe working environment and protection of employees from occupational hazards.

Safety Education and Training

The key to cultivating a safety culture is all about nurturing, educating and training individuals. Computime continues to strengthen safety training to improve employees' safety awareness, as well as to enhance their knowledge and skills regarding occupational health and safety. General safety regulations and operating procedures on industrial and fire safety, as well as fire handling procedures are clearly stated in the Employee Handbook. We conduct regular safety production education and training, ensuring employees are familiar with the safety production system and safety operation procedures. We provide new employees with health and safety induction training on work procedures and workplace hazards, along with workplace instruction on the use of personal protective equipment ("PPE"), emergency response and occupational health management.

During the Year, we arranged various safety training programmes for employees, covering topics such as traffic management, hand and power tool safety, hand and hearing protection, mechanical and electrical equipment safety, fire safety and emergency handling. We also enhance the communication of our OHS Policy and safety- related issues across the organisation through distributing Computime EHS Newsletter on topics including knowledge on chemical hazards, mechanical injury and fire safety.

Computime EHS Newsletters (in Chinese)

List of applicable laws and regulations available in "Laws and Regulations".

32 COMPUTIME GROUP LIMITED

Employees Care (continued)

Safety at Work

In the factories, most activities are exposed to health and safety risks of fire and chemicals. We have, therefore, developed Fire Protection Procedures and Chemical Storing and Handling Procedures to clearly define the responsibilities and ensure effective and proper handling. We strictly comply with fire management regulations, with fire extinguishing equipment and supervision by assigned personnel in place at all our operational sites. Daily inspection of chemical products stored in warehouses is conducted to ensure early detection in case of chemical leakage. Employees who need to be exposed to chemicals must receive chemical management and information training.

All safety related incidents must be reported, handled and investigated in a timely manner, according to the Incident Management Procedures. Rectification and preventive measures are taken to prevent recurrence of similar incidents. Employees who are engaged in mechanical operations, such as electric welding, operating electrical equipment and lifts, must be certified and get specific work licenses before they come on board.

Preventing Occupational Diseases

Employees must be equipped properly with the PPE provided before commencing work in production lines. We have established the Occupational Health Surveillance Management Procedures to prevent, control and eliminate occupational diseases. Regular and irregular health checks are arranged for employees to identify and eliminate any occupational health issues in advance. Employees who are exposed to hazardous factors are required to receive health assessments before they report for duty, during the employment and before they relinquish their responsibilities. Relevant documents such as health check records, treatment records and medical history are kept as occupational health surveillance files for future reference.

Emergency Management

During the Year, Computime further refined its emergency plan by implementing the Emergency Response and Management Procedures. Spearheaded by the Vice President of Manufacturing, the Emergency Rescue Organisation is responsible for ensuring rapid and effective control when emergencies occur. The emergency response evacuation steps and meeting points are clearly stated, with refinement of various types of emergency handling guidelines to ensure that emergency incidents, including fire, explosion and natural disasters such as typhoon and flooding, are handled in a timely and appropriate manner. We conduct evacuation drills at least twice a year for all operations, shifts and departments, which further strengthen our ability to address any emergency and preparation in daily operations.

ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2019/2020

Employees Care (continued)

Community Involvement

Committed to supporting the communities where it has operations, Computime actively takes on the responsibilities of a good corporate citizen and encourages its employees to participate and volunteer in charitable affairs. During the Year, Computime focused on education and community areas and contributed an approximate of HK$347,000, striving to create values to the community.

Children are the pillars of future society. Computime has always put children at the forefront in the provision of community service, with special focus on those from low income families and those with special educational needs ("SEN"). In upholding the motto "Volunteering - Go and Give, Gain and Grow", Computime has provided sponsorship and donation to three charitable institutions in FY2020. They are Heep Hong Society, Principal Chan Free Tutorial World and S.K.H. St. Christopher's Home.

34 COMPUTIME GROUP LIMITED

Employees Care (continued)

Partnering with Heep Hong Society

For parents of SEN children under 6 years old, timely assessment and training for their children are always their top priorities. In view of this, Computime has supported the "Skills for Life" Bursary for children of Heep Hong's Supportive Learning Project since 2018. The Bursary subsidises SEN children from low income families, allowing them to receive timely and continued support, like developmental assessments by psychologist and participation in the "Read and Write Trooper Course" for children with suspected dyslexia. 62 children from low income families have benefited from our sponsorship.

Partnering with Principal Chan Free Tutorial World

We have high regards of Principal Chan (Mr. Hung Chan) in his aspiration to provide free tutorial services and other educational needs to the underprivileged children. It is never an easy task, but Principal Chan's sacrifice in stepping down as the principal of a secondary school has paid off. While giving out sponsorship to show our support, we have also promoted Principal Chan Free Tutorial World to all colleagues, including to new employees in HR orientation, to encourage them and their families and friends to register as volunteer tutors.

Partnering with S.K.H. St. Christopher's Home

Computime's sponsorship on Multiple Intelligence Program, conducted by HeartLink of S.K.H. St. Christopher's Home, consists of three scopes of service: developmental workshops, academic guidance and Christmas outdoor activity, targeting at children aged 6 to 12 from low-income families. The objective of the program was to provide a delightful environment where the underprivileged children can develop the logical-mathematical,verbal-linguistic, and interpersonal ability.

Educational tour of the Aberdeen Country Park with guidance of The Conservancy Association

ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2019/2020

Looking forward

We believe smart and energy-saving technologies are the key to a smart and sustainable living and, therefore, the Company works diligently to develop innovative products and pursue operational excellence.

Going forward, we will continue to shoulder our responsibility as a responsible corporate citizen and to universalise smart and sustainable living through our technologies, products and manufacturing solutions. We are dedicated to bring positive transformation to the Company and the society by contributing to environmental protection, occupational safety, workplace equality and social caring.

36 COMPUTIME GROUP LIMITED

Laws and Regulations

We implement internal policies and initiatives to ensure our business operations adhered to all applicable laws and regulations listed below.

Aspect	Applicable Laws and Regulations	Section

A1 Emissions	•	Law of the People's Republic of China on the Prevention and Control	Emissions Control
		of Atmospheric Pollution
	•	Law of the People's Republic of China on the Prevention and Control
		of Water Pollution
	•	Law of the People's Republic of China on the Prevention and Control
		of Environmental Pollution of Solid Waste
A2 Use of Resources	•	Law of the People's Republic of China on Conserving Energy	Resources Consumption
	•	Law of the People's Republic of China on the Promotion of Clean	and Conservation
		Production
A3 The Environmental	•	Law of the People's Republic of China on Appraisal of Environmental	Propelling Green
and Natural Resources		Impacts	Product Development
	•	Environmental Protection Law of the People's Republic of China
B1 Employment	•	Labor Law of the People's Republic of China	Talents Management
	•	Labor Contract Law of the People's Republic of China
	•	Special Rules on the Labor Protection of Female Employees
B2 Health and Safety	•	Production Safety Law of the People's Republic of China	Occupational Health
			and Safety
B4 Labor Standard	•	Law of the People's Republic of China on the Protection of Minors	Talents Management
	•	Provisions on the Prohibition of Using Child Labor
B6 Product Responsibility	•	Product Quality Law of the People's Republic of China	Quality Assurance, Data
	•	Tort Law of the People's Republic of China	and Privacy Security
	•	Patent Law of the People's Republic of China
B7 Anti-corruption	•	Anti-Unfair Competition Law of the People's Republic of China	Anti-corruption
	•	Criminal Law of the People's Republic of China

ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2019/2020

Performance Data Summary

		FY2020


	Greenhouse Gas Emissions
	Scope 1 direct emissions (tCO2e)	350
	Scope 2 indirect emissions (tCO2e)	27,064
	Total GHG emissions (tCO2e)	27,414
	Emission intensity (tCO2e per HK$'000,000 revenue)	8.40
	Air Pollutants Emissions
	Sulphur oxides (SOx) (kg)	1.80
	Nitrogen oxides (NOx) (kg)	85.61
	Particulate matter (PM) (kg)	6.58
	Methylbenzene (kg)	590.38
	Waste
	Hazardous waste (Tonne)	88.53
	- Waste mineral oils	3.84
	- Organic solvent waste	30.51
	- Organic resins waste	40.28
	- Mercury, lead and zinc waste	0.11
Environment	- Other hazardous waste	13.8
	Hazardous waste intensity (kg per HK$'000,000 revenue)	27.14
	Non-hazardous waste (Tonne)	369.25
	Non-hazardous waste intensity (kg per HK$'000,000 revenue)	113.18
	Resources Consumption
	Diesel (L)	79,548
	Petrol (L)	35,229
	Natural gas (m³)	20,883
	Electricity (MWh)	32,535
	Total energy consumption (MWh)	33,864
	Energy intensity (MWh per HK$'000,000 revenue)	10.38
	Water (m³)	351,063
	Water intensity (m³ per HK$'000,000 revenue)	107.6
	Packaging Material
	Carton (Piece)	3,894,141
	Printing (Piece)	15,840,965
	Other packing materials (Piece)	43,752,916

38 COMPUTIME GROUP LIMITED

Performance Data Summary (continued)

Workforce Demographics

	FY2020
Total Headcount	4,984
By Gender
Male	1,922
Female	3,062
By Function
Management	315
Staff	970
Front-line Workers	3,699
By Age
< 30	1,293
30-50	3,494
>50	197
By Geographical Distribution
Mainland China	4,548
Hong Kong	202
Malaysia	142
Europe and America	92
By Employment Type
Full-time	4,982
Part-time	2

ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2019/2020

Performance Data Summary (continued)

		FY2020

	Employees Training - By Function
	Percentage of Employees Trained
	Management	4.66%
	Staff	19.11%
	Front-line Workers	76.24%
	Average Training Hours Per Employee
	Management	9.69
	Staff	7.90
	Front-line Workers	17.71
Development	Employees Training - By Gender
Percentage of Employees Trained
and Training
Male	38.15%

	Female	61.85%
	Average Training Hours Per Employee
	Male	7.35
	Female	20.27
	Occupational Health and Safety
	Number of work-related injuries	32
	Lost days due to work-related injuries	648
	Number of work-related fatalities	0
	Percentage of work-related fatalities	0
	China	632
Suppliers	Asia except China	18
Europe	31

	North America	54
	Number of products sold or shipped subject to recalls for safety	0
	and health reasons
Product Quality	Percentage of total products sold or shipped subject to recalls for	0
	safety and health reasons
	Number of products and services related to complaints received	125
Community	Donation (HK$)	approximate 347,000

40 COMPUTIME GROUP LIMITED

Content Index

KPIs	HKEx ESG Reporting Guide Requirements	Section/Remarks

A. Environmental
Aspect A1:	General Disclosure	Environmental
Emissions	Information on:	Protection - Emissions
	a)	the policies; and	Control
	b)	compliance with relevant laws and regulations that have a significant
		impact on the issuer

relating to air and greenhouse gas emissions, discharges into water and land, and generation of hazardous and non-hazardous waste.

KPI A1.1	The types of emissions and respective emissions data.	Performance Data
		Summary
KPI A1.2	Greenhouse gas emissions in total (in tonnes) and, where	Performance Data
	appropriate, intensity (e.g. per unit of production volume, per	Summary
	facility).
KPI A1.3	Total hazardous waste produced (in tonnes) and, where	Performance Data
	appropriate, intensity (e.g. per unit of production volume, per	Summary
	facility).
KPI A1.4	Total non-hazardous waste produced (in tonnes) and, where	Performance Data
	appropriate, intensity (e.g. per unit of production volume, per	Summary
	facility).
KPI A1.5	Description of measures to mitigate emissions and results	Environmental
	achieved.	Protection - Emissions
		Control
KPI A1.6	Description of how hazardous and non-hazardous wastes are	Environmental
	handled, reduction initiatives and results achieved.	Protection - Emissions
		Control

ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2019/2020

Content Index (continued)

KPIs	HKEx ESG Reporting Guide Requirements	Section/Remarks

Aspect A2:	General Disclosure	Environmental
Use of Resources	Policies on the efficient use of resources, including energy, water and other	Protection - Resources
	raw materials.		Consumption and
			Conservation
	KPI A2.1	Direct and/or indirect energy consumption by type (e.g.	Performance Data
		electricity, gas or oil) in total (kWh in '000s) and intensity (e.g.	Summary
		per unit of production volume, per facility).
	KPI A2.2	Water consumption in total and intensity (e.g. per unit of	Performance Data
		production volume, per facility).	Summary
	KPI A2.3	Description of energy use efficiency initiatives and results	Environmental
		achieved.	Protection - Resources
			Consumption and
			Conservation
	KPI A2.4	Description of whether there is any issue in sourcing water	Environmental
		that is fit for the purpose, water efficiency initiatives and	Protection - Resources
		results achieved.	Consumption and
			Conservation
	KPI A2.5	Total packaging materials used for finished products	Performance Data
		(in tonnes) and, if applicable, with reference to per unit	Summary
		produced.
Aspect A3:	General Disclosure	Environmental
The Environment	Policies on minimizing the issuers' significant impact on the environment and	Protection - Propelling
and Natural	natural resources.	Green Product
Resources			Development,
			Environmental
			Management
	KPI A3.1	Description of significant impacts of activities on the	Environmental
		environment and natural resources and the actions taken to	Protection - Propelling
		manage them.	Green Product
			Development,

Environmental

Management

42 COMPUTIME GROUP LIMITED

Content Index (continued)

KPIs	HKEx ESG Reporting Guide Requirements	Section/Remarks

B. Social
Aspect B1:	General Disclosure	Employees Care -
Employment	Information on:		Talents Management
	a)	the policies; and
	b)	compliance with relevant laws and regulations that have a significant
		impact on the issuer
	relating to compensation and dismissal, recruitment and promotion, working
	hours, rest periods, equal opportunity, diversity, anti-discrimination, and other
	benefits and welfare.
	KPI B1.1	Total workforce by gender, employment type, age group and	Performance Data
			geographical region.	Summary
Aspect B2:	General Disclosure	Employees Care -
Health and Safety	Information on:		Occupational Health
	a)	the policies; and	and Safety
	b)	compliance with relevant laws and regulations that have a significant
		impact on the issuer

relating to providing a safe working environment and protecting employees from occupational hazards.

	KPI B2.1	Number and rate of work-related fatalities.	Performance Data
			Summary
	KPI B2.2	Lost days due to work injury.	Performance Data
			Summary
	KPI B2.3	Description of occupational health and safety measures	Employees Care -
		adopted, how they are implemented and monitored.	Occupational Health
			and Safety
Aspect B3:	General Disclosure	Employees Care -
Development and Policies on improving employees' knowledge and skills for discharging duties	Training and
Training	at work. Description of training activities.	Development
	KPI B3.1	The percentage of employees trained by employee category	Performance Data
		(e.g. senior management, middle management, etc.)	Summary
	KPI B3.2	The average training hours completed per employee by	Performance Data
		gender and category.	Summary

ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2019/2020

Content Index (continued)

KPIs	HKEx ESG Reporting Guide Requirements	Section/Remarks

Aspect B4:	General Disclosure	Employees Care -
Labor Standards	Information on:		Prohibition of Child
	a)	the policies; and	Labour and Forced
	b) compliance with relevant laws and regulations that have a significant	Labour
		impact on the issuer
	relating to preventing child and forced labour.
	KPI B4.1	Description of measures to review employment practices to	Employees Care -
			avoid child and forced labor.	Prohibition of Child
				Labor and Forced
				Labour
	KPI B4.2	Description of steps taken to eliminate such practices when	Employees Care -
			discovered.	Prohibition of Child
				Labor and Forced
				Labour
Aspect B5:	General Disclosure	Operational Excellence
Supply Chain	Policies on managing environmental and social risks of the supply chain.	- Sustainable Supply
Management				Chain
	KPI B5.1	Number of suppliers by geographical region	Performance Data
				Summary
	KPI B5.2	Description of practices relating to engaging suppliers, number	Operational Excellence
			of suppliers where the practices are being implemented, how	- Sustainable Supply
			they are implemented and monitored.	Chain
Aspect B6:	General Disclosure	Operational Excellence
Product	Information on:		- Quality Assurance
Responsibility	a)	the policies; and
	b) compliance with relevant laws and regulations that have a significant
		impact on the issuer relating to health and safety, advertising, labelling
		and privacy matters relating to products and services provided and
		methods of redress.
	KPI B6.1	Percentage of total products sold or shipped subject to recalls	Performance Data
			for safety and health reasons.	Summary
	KPI B6.2	Number of products and service related to complaints received	Performance Data
			and how they are dealt with.	Summary, Operational
				Excellence - Customer
				Satisfaction

44 COMPUTIME GROUP LIMITED

Content Index (continued)

KPIs	HKEx ESG Reporting Guide Requirements	Section/Remarks

	KPI B6.3	Description of practices relating to observing and protecting	Operational Excellence
		intellectual property rights.	- Innovation
	KPI B6.4	Description of quality assurance process and recall procedures.	Operational Excellence
			- Quality Assurance,
			Customer Satisfaction
	KPI B6.5	Description of consumer data protection and privacy policies,	Operational Excellence
		how they are implemented and monitored.	- Data and Privacy
			Security
Aspect B7:	General Disclosure	Operational Excellence
Anti-corruption	Information on:		- Anti-corruption

the policies; and
compliance with relevant laws and regulations that have a significant impact on the issuer relating to bribery, extortion, fraud and money laundering.

	KPI B7.1	Number of concluded legal cases regarding corrupt practices	Operational Excellence
		brought against the issuer or its employees during the	- Anti-corruption
		reporting period and the outcomes of the cases.
	KPI B7.2	Description of preventive measures and whistle-blowing	Operational Excellence
		procedures, how they are implemented and monitored.	- Anti-corruption
Aspect B8:	General Disclosure	Employees Care
Community	Policies on community engagement to understand the needs of the	- Community
Investment	communities where the issuer operates and to ensure its activities take into	Involvement
	consideration the communities' interests.
	KPI B8.1	Focus areas of contribution (e.g. education, environmental	Employees Care
		concerns, labour needs, health, culture, sport).	- Community
			Involvement
	KPI B8.2	Resources contributed (e.g. money or time) to the focus area.	Performance Data
			Summary

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Computime Group Limited published this content on 30 July 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 July 2020 14:10:19 UTC

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May. 27	Computime Group Announces the Launch of One of the First True Matter Thermostats	CI
Apr. 30	Computime Group Expects Profit to More Than Triple in FY2024	MT

Computime Group Announces the Launch of One of the First True Matter Thermostats	May. 27	CI
Computime Group Expects Profit to More Than Triple in FY2024	Apr. 30	MT
Computime Group Limited Provides Earnings Guidance for the Year Ended 31 March 2024	Apr. 29	CI
Computime Unit to Renew Office Lease Agreement	Jan. 03	MT
Computime Group Limited Announces Management Changes	Jan. 03	CI
Computime's Profit Rises in Fiscal H1; Shares Surge 23%	Nov. 24	MT
Computime Group Limited Reports Earnings Results for the Half Year Ended September 30, 2023	Nov. 23	CI
Computime Group Limited Appoints May Man Yee Mariana as Independent Non-Executive Director and A Member of Each of the Audit Committee, the Nomination Committee and the Remuneration Committee, Effective 1 December 2023	Nov. 23	CI
Computime Enhances Competitive Advantages with SAP Solutions	23-09-26	CI
Computime Group Limited Announces Board Changes	23-09-07	CI
Computime Group Limited Approves Final Dividend for the Year Ended 31 March 2023	23-09-07	CI
Computime Group Limited Proposes Ordinary Final Dividend for the Year Ended March 31, 2023, Payable on October 9, 2023	23-06-29	CI
Computime Group Limited Reports Earnings Results for the Full Year Ended March 31, 2023	23-06-29	CI
Computime Warns of Up to 76% Drop in Profit	23-03-27	MT
Computime Group Limited Provides Consolidated Earnings Guidance for the Year Ending 31 March 2023	23-03-24	CI
Computime Renews Lease in China's Yulian Industrial Park Until 2025	22-12-07	MT
Computime Logs $3.86 Million Profit for a Six-Month Period	22-11-23	MT
Computime Group Limited Announces Registered Office Changes	22-11-23	CI
Computime Group Limited Reports Earnings Results for the Half Year Ended September 30, 2022	22-11-23	CI
Computime Group Limited Declares Final Dividend for the Year Ended 31 March 2022	22-09-08	CI
Computime Group Limited Announces Resignation of HO Pak Chuen Patrick as an Executive Director of GBG	22-07-25	CI
Computime Group Limited Proposes Final Dividend for the Year Ended March 31, 2022, Payable on October 11, 2022	22-06-30	CI
Computime Group Limited Reports Earnings Results for the Full Year Ended March 31, 2022	22-06-30	CI
Computime Group Appoints CEO as New Chairman	22-04-14	MT
Computime Group Limited Announces Board and Board Committees Changes	22-04-13	CI

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COMPUTIME GROUP LIMITED	-7.95%	43.63M
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COGNEX CORPORATION	+9.06%	7.82B
BADGER METER, INC.	+25.00%	5.67B
INFICON HOLDING AG	+18.74%	3.87B
WUHAN GUIDE INFRARED CO., LTD.	-10.27%	3.86B
RENISHAW PLC	+11.79%	3.7B
HORIBA, LTD.	+13.15%	3.33B
ESCO TECHNOLOGIES INC.	-6.75%	2.81B
SKYVERSE TECHNOLOGY CO., LTD.	-28.66%	2.35B

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