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Environmental, Social and Governance Report

REPORTING ON SOCIAL ASPECTS

Employment and Labour Practices

1. Employment

The Group had 1,600 employees as at 31st March 2017. We undertake to provide a workplace
where our staff is respected. Our employment and labour practices were made in compliance with the
Employment Ordinance (Chapter 57 of the Laws of Hong Kong), Labour Law of the People’s Republic
of China€ʕശɛ͏΍ձ਷௶ਗج‘, Labour Contract Law of the People’s Republic of China€ʕ
ശɛ͏΍ձ਷௶ਗΥΝج‘and other applicable laws, as well as industry practices. All employees,
upon joining the Group, are given briefing sessions, which cover terms of employment, remuneration
packages, working hours, rest periods and holidays, termination, confidentiality and other areas.

References to the market condition and industry benchmark are made when determining the reasonable
remuneration packages of our staff. Employees’ job nature and experience, results of work appraisal,
financial results of the Group are also considered. Annual discretionary bonuses are given to employees
to acknowledge their hard work and reward those with outstanding performance. In accordance with
relevant laws, we provide other benefits to employees, such as mandatory provident fund, medical
insurance and social insurance. Factory employees are provided with dormitory and meals.

While we tend to employ local citizens living near Houjie Factory to support local employment, we
embrace diversity and inclusion. Employees of all backgrounds are entitled to fair and adequate
promotion opportunities. Our recruitment and development programs are supervised under our human
resources management system to ensure no discrimination in any forms within the Group. We have
been maintaining a balanced gender ratio, the overall gender ratio is approximately 1:1.

For termination of employment contract, our human resources department will follow all procedures
under the human resources management system and applicable labour laws. Termination clauses are
set out in all employees’ contracts. In case of complex situation, human resources department will
consult our legal advisors and/or management to ensure such employment termination is in compliance
with applicable laws.

During the Reporting Period, the Group had not been involved in any incident of non-compliance with
laws and regulations relating to employment that had a significant impact on the Group.

24 ALCO HOLDINGS LIMITED ANNUAL REPORT 2017