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Environmental, Social and Governance Report

REPORTING ON ENVIRONMENTAL ASPECTS

Emissions

We have a manufacturing facility based in Houjie Town, Dongguan City, Guangdong Province in People’s
Republic of China (“PRC”) (“Houjie Factory”). Upon an acceptance inspection of the facility’s construction
and a thorough environmental assessment, Houjie Factory has received the Approval of Pollutant Emission
in Guangdong Province from the Environmental Protection Bureau of Dongguan City, which is a prerequisite
for commencement of manufacturing activities. Houjie Factory has also obtained the certification of ISO
14001:2015 for meeting the required standards for environmental management system.

The Group is devoted to protect the eco-system. We have formulated a set of comprehensive internal
environmental guidelines in Regulations of Wastewater, Waste Gas and Noise Control for the Houjie Factory.
The Group adopts different measures to mitigate the negative impact on the environment from its operations.
We carry maintenance and repair on equipment and environmental check to monitor emission levels on a
regular basis. We also hire professional, licensed companies to perform yearly environmental check to ensure
that our emission levels are in compliance with applicable standards. We have installed ventilation system;
whilst inspection of indoor air quality of workplace is conducted regularly.

Our other initiatives of reinforcing environmental control include establishing an energy-saving and emission-
reduction system, streamlining production procedures, enhancing employees’ awareness, replacing machines
with low-efficiency and installing energy-saving equipment.

During the Period, all of our emissions, including nitrogen oxides (NOx), sulfur oxide (SOx), suspended
substances and wastewater, are within the levels regulated under national environmental laws and
regulations. There was also no incident of non-compliance with local relevant environmental laws and
regulations that have a significant impact on the Group relating to air and greenhouse gas, emissions,
discharge into water and land, and generation of hazardous and non-hazardous waste.

Use of Resources

We strive to reduce carbon emissions through a more efficient use of resources. Electricity was used as the
main energy sources for production and heat. In light of this, we focus our efforts on improving operating
efficiency and strengthening conservation of energy, water and other raw materials.

22 ALCO HOLDINGS LIMITED ANNUAL REPORT 2017