Ju Teng International : Environmental, Social and Governance Report 2020

CONTENTS

ABOUT THIS REPORT

Overview

This report is the fifth Environmental, Social and Governance ("ESG") Report ("ESG Report") released by Ju Teng International Holdings Limited ("Ju Teng International", "the Group", or "we"), and discloses information on our ESG strategy, measures, priorities, and performance.

Reporting period

Unless otherwise specified, the disclosed information of this report covers the period from 1 January to 31 December 2020 (the "Reporting Period").

Basis of preparation

This report is prepared in accordance with "Environmental, Social and Governance Reporting Guide" (the "ESG Reporting Guide") issued by The Stock Exchange of Hong Kong Limited ("HKEX") as set out in Appendix 27 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited. The content of this report is determined by a set of procedures, including identifying and prioritising stakeholders, identifying and prioritising material environmental, social and governance issues, collecting environmental metrics, and verifying the reported data.

Reporting scope and boundary

Unless otherwise specified, the content and metrics reported in this report cover the following subsidiaries only:

Source of data

The information and case studies of this report are prepared based on the Group's internal statistical reports and other relevant internal documents.

Board approval

This report was reviewed by the management and was approved by the Board of Directors (the "Board") on 17 March 2021.

ABOUT JU TENG INTERNATIONAL

Company overview

Established in 2000, Ju Teng International is a casing manufacturer specialising in 3C products. Its major customers include HP, Dell, Acer and ASUS and its production bases cover Eastern China, Western China and Taiwan. After 20 years of endeavours, Ju Teng International have been well recognised by our customers. In the first half of 2020, the global economy experienced a downward trend due to the outbreak of the 2019 Coronavirus (COVID-19) epidemic. However, the epidemic has increased the demand for remote working and learning. Remote working and learning have become a new trend in lifestyle and have driven the development of the personal computer market, also bringing new opportunities and challenges to the Group. Taking advantage of this market opportunity, we take the initiative to improve the level of R&D and core competitiveness, while remaining cautious in the face of risks and uncertainties, adjusting our strategies flexibly and growing steadily in the midst of challenges.

Ju Teng International's vision

Ju Teng always believes that quality, scientific management and sustainable development are the foundation. With the increasingly stringent requirements of governments and markets on the electronics industry's production chain over the past 20 years, we have won the recognition of our customers worldwide by relying on our advanced technologies, responsible attitude, professional services and excellent product quality. We are well aware that a well-performing enterprise not only delivers high-quality products but also conducts scientific management and achieves sustainable development. With a view to performing the social responsibilities, promoting the progression of our suppliers and protecting the benefits of our broad investors, we promote the sustainable development of the electronics industry through our endeavours in the following five vision areas.

Responsible operation

SupplierCustomer

managementsatisfaction

Ju Teng International's visions

In order to help pubic better understand Ju Teng International's business philosophy, mission and vision, environmental protection and social responsibility practices, we discloses and elaborates on environmental, social and governance, and other non-financial information publicly and in detail in this report, and also hope that this information disclosure will provide Ju Teng International with an opportunity to review its ESG risk management performance.

RESPONSIBILITIES OF THE MANAGEMENT

3 Strictly complying with laws and regulations of jurisdictions that we operate in;

3 Appointing dedicated personnel to take responsibility in implementing internationally recognised environmental, health and safety, labour rights management systems;

3 Upholding business ethics, rooting out corruption, protecting confidential information and respecting intellectual property rights.

Ju Teng International has been working with all members of the value chain to reduce the environmental and social impact of the manufacturing process of electronic products. In response to the international community and investors' demand for sustainable development, Ju Teng International continuously optimises the implementation of ESG management system to improve and enhance the Group's ESG management and performance.

ESG organisation structure

With the goal of "Dynamic Maintenance and Improvement of ESG Management System", Ju Teng International mainly adopts the ESG management procedures of "framework building, target setting and actions taking" to execute work tasks at all levels and actualise normalisation in management. Our current ESG management model is adopted under a top-down approach.

The Board of Directors of Ju Teng International is taking the lead in formulating ESG management policies at the Group level. The general manager of each production plant company ("Production Plant") is responsible for constructing the ESG management system that meets the characteristics of the Production Plant, participating in the top-level design, controlling the policies and systems of all ESG aspects, and reporting to the Board of Directors the Production Plant's ESG management results. Each operational unit in the Production Plants is required to strictly implement the ESG management system, including executing the ESG targets, ESG training, managing ESG-related data and collecting information. The Group's ESG management organisation structure is as follows:

ESG Management Organisation Structure

The Group's ESG management system can be distributed to all departments and units responsible for managing and implementing ESG issues and monitoring ESG trends, thereby seizing the opportunity to improve the Group's ESG performance. Considering the safety risks in the manufacturing industry, the Group requires each operational unit in the Production Plants to assign designated staff to participate in the management of occupational safety and health, such as the formulation of internal regulations and policies, identification and evaluation of safety risks, etc.