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Environmental, Social and Governance Report

REPORTING ON SOCIAL ASPECTS (CONTINUED)

Operating Practices (Continued)

6. Product Liabilities

Through strict implementation of the guidelines and policies, we undertake to provide quality products
to consumers. While we make products that satisfy consumer needs, we also carry out quality and
safety assurance works during manufacturing processes to ensure the products are able to pass the
safety and environmental standards of respective sale regions. We will promptly handle and investigate
all client complaints to facilitate improvement of our service and product quality.

During the Reporting Period, no request for product recalls due to safety and health issues has been
received by us.

7. Anti-corruption

The Group complies with relevant laws and regulations that are related to corruption, bribery, extortion,
money-laundering and other frauds.

To reinforce corporate governance, we have formed an audit committee, while hiring external lawyers
and auditors to offer opinions on our financial reporting and other compliance issues. While we have
complied with Stock Exchange’s corporate governance requirements on listing companies, we will
continue to review and improve our internal control and corporate governance.

We have abstracted relevant sections of the Prevention of Bribery Ordinance in Hong Kong into the
code of conduct. Our employees are required to be aware of and declare if they have personal interests
which may conflict with the company’s interests.

The Group has defined clear allegation procedures in the code of conduct, to provide a transparent
channel for employees to report on any suspected misconduct or malpractice within its operations.
During the reporting period, there were no such allegations reported.

Community

8. Community Investment

The Group strives to fulfill our responsibilities as a corporate citizen and undertake to make positive
contribution to society. The Group will continue to look into ways of promoting the spirit of corporate
social responsibility within the company by organizing or participating in appropriate community
activities, donations or scholarship programs. We, through this kind of events, aspire to create the idea
of giving back from our employees, foster closer relationships among the Group, our employees and the
communities by caring for and helping those in need.

During the Reporting Period, we cooperated with local universities for work placement programs and
work with the Hong Kong Labour Department to fill certain job positions.

28 ALCO HOLDINGS LIMITED ANNUAL REPORT 2017