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Environmental, Social and Governance Report

REPORTING ON ENVIRONMENTAL ASPECTS (CONTINUED)

Use of Resources (Continued)

The Group has prepared the Resources and Energy Saving Management Guidelines. We constantly check
whether our equipment and machines function properly, and replace them when necessary. Machines, lights
and air-conditioners must be switched off after working hours to save electrical power. Detailed assessment
on environmental impact are made prior to using new materials, equipment or production technique. To avoid
overstocking, production volume is set according to client orders.

Waste of electronic devices, electronic parts and printed circuit boards will be collected and handled by
certified recycling service providers to reduce solid waste. We have a dedicated department for the repair
and maintenance of electronic devices to extend their life spans. We categorize different types of waste and
designate storage areas for them as part of our measures to ensure a better waste treatment.

We will continue to identify and address any potential environmental risks, and we will promptly take
measures to improve our consumption level of resources.

Environment and Natural Resources

We stress the importance of protecting biodiversity and ecosystems and learn from our decades of
experience in the manufacturing sector to promote green practices. We are devoted to minimize negative
impact from our business operations as we step up our efforts in raising employees’ awareness and
enhancing our environmental control.

We have built, followed and maintained an effective environmental management system in accordance with
the ISO 14001:2015 standards. We begin with our product design as environmental considerations are
incorporated. Where applicable, our products meet the environmental and safety requirements of Restriction
of Hazardous Substances Directive (RoHS), Registration, Evaluation, Authorisation and Restriction of
Chemicals (REACH), Federal Communications Commission (FCC) and Edison Testing Laboratories (ETL);
whilst materials used in products are inspected against harmful substances and durability at design stage.
We also evaluate the environmental impact for each process of the product cycle. Houjie Factory enjoys a
geographical advantage which allows us to shorten the transportation distance and thereby reducing fuel
consumption. We choose better technologies and materials to enhance product durability and improve
product lifespans.

We forbid any discharge of wastewater, oil, chemicals, sludge and other wastes to the public sewer. A
certified company is hired to handle wastewater containing chemicals and we have kept the production
facilities and sewage treatment facilities in good condition.

ALCO HOLDINGS LIMITED ANNUAL REPORT 2017 23