The Group has been committed to achieving the sustainable development goal of environmental protection and energy saving. By implementing the Environmental and Quality Management System to manage the environment in a systematic manner, the Group strives to deliver the development strategy of balancing environment, society and economy. The Group has adopted the management concept of life cycle in all the business activities worldwide to minimize adverse effect on environment while producing and offering services, perform its compliance obligations and enhance environmental performance, thus contributing to the better prevention of environment pollution and the sustainable development of society.

(I) EMISSIONS

To implement relevant laws and regulations promulgated by the People’s Republic of China (“PRC”) such as Environmental Protection Law (《環境保護法》), the Law on the Prevention and Control of Air Pollution (《大氣 污染防治法》), the Law on the Prevention and Control of Water Pollution (《水污染防治法》), the Group sets a goal of environmental management to achieve pollution reduction and emission control and strictly monitor waste discharge during the course of production by setting up ISO14001 Environmental Management System and carrying out environmental control procedures as well as environmental monitoring and measurement control procedures pursuant to the working guideline of “standardizing the works of environmental management, taking precaution as the main task, fulfilling regulation requirement, satisfying the standards of emission to make sure that it is under control and continuing to save energy and reduce consumption”, with the aim to ensure the management and control of pollution at source.

The Group is committed to achieving environmental and social sustainability in its daily operations. In terms of environmental aspects of the 2020 sustainable development goal, we ensured zero fine in exhaust gas emission. Designated dumping areas in each production base segregated wastes by licensed waste collectors and the garbage in the bases was strictly sorted and recycled.

During production process of the Group, there is no emission of industrial wastewater, except for little air contaminant discharged by its administrative cars and standby generating sets. Wastes in each production area are discharged after treatment in accordance with the approved requirements based on the evaluation on the impact on the environment and the production areas shall perform annual review to ensure legal and compliant emission of exhaust gas. All the toxic waste generated by the Group, including batteries, bulbs and coolant oil, will be conducted professional recovery and processing by qualified waste recovery and processing companies. The Group has entered into contracts for hazardous waste treatment with companies that have obtained national qualification for hazardous waste treatment to carry out regular waste disposal. The Group has also signed treatment orders for hazardous wastes to be regularly reported on the government website for reporting hazardous wastes. Non-hazardous waste mainly includes domestic waste generating from daily office works and canteen of the Company, which has been treated in strict compliance with the sorting principle. Raw material wastes such as vegetables, roots and animal offal should be treated as domestic wastes; swills should be disposed into swill buckets as required; canteen garbage should be dumped into the garbage pool in a centralized manner and dumping at will is prohibited. Indirect emissions from external production of electricity and employees’ business trips are the major source of the Group’s greenhouse gas emission. In 2020, the equivalent amount of carbon dioxide (CO2 ) emission for sales revenue per ten thousand was 0.058 tonnes. The emission density of greenhouse gas increased comparing with that of 2019. The increase in hazardous waste was mainly caused by used coolant oil. Since historical data has not been sorted out from the data of the previous year, the data of this part is not available.

In 2020, the Group continued to optimize solutions and scope for using administrative cars. Administrative cars can only be used for important corporate business entertainments. The fleet arrangements during daily operation shall be reasonable and user-friendly to avoid unnecessary car rent. For non-essential business, staff are encouraged to take public transport or choose ride-hailing services via more affordable third party platforms. The Group also consolidated the frequency and route of the Company’s shuttle buses for many times based on the actual situation. The Group has carried out regular supervision over and assessment of the service quality of the outsourcing service companies, enhanced the degree of informationization of its documents, optimized offline working procedures, formulated online working procedures to encourage paperless office work so as to reduce paper consumption while printing, at the same time conscientiously implementing the relevant PRC laws and regulations and strictly implementing waste sorting system, thereby effectively controlling emission of pollution.

(II) RESOURCE UTILIZATION

The Group takes a careful consideration of environment factors throughout the life cycle of its products and services to provide its products with the characteristics of energy and natural resource saving and non-pollution in each procedure of R&D, production, sale, transportation, utilization and abandonment. Manufacturing base in Guangzhou Development Zone has been certified by the Green Manufacturing System (綠色製造體系) since 2018. The Company effectively manages the water consumption and waste water treatment to reduce environment pollution, actively promotes the concept of water conservation through publicity and educational activities, energy conservation column on the Company’s WeChat account and regular reporting and posting of wasting behaviours. To save water resources, the Group also sets water usage and conservation targets, striving to lower the usage by 6% year-on-year. The Group did not encounter any difficulties in seeking appropriate water sources. The Group also increases the frequency of daily inspection and perform around-the-clock regular and non-regular inspections on power and water utilization in each floor and each department of the base; maintains proper inspection records and publicly criticizes the departments with behaviours of wasting; reduces the utilization of hazardous and toxic substances in each procedure, proactively seeks, develops and uses new environmental technologies and materials and encourages recycling of all materials, while for resource and energy consumption, the Group promotes active application of energy efficient products, equipment and techniques to reduce energy consumption.

 During the year, the Group continued to optimize and reform its product packaging. The Group prioritized the adoption of environment-friendly technologies in the construction of new projects, during which an inspection report shall be submitted regarding the materials used so that all materials can meet national requirements for environmental protection and will not cause contamination to the surrounding environment when used. The Group also reduced the use of packaging accessories and packaging materials, at the same time planting more trees in the Knowledge City. During the year, the Group established 5G workshops by expanding the existing workshops and added production equipment with flow processes for certain production lines, resulting in an increase in power consumption but a decrease in water consumption.

(III) ENVIRONMENT AND NATURAL RESOURCES

The Group is proactive in enhancing staff awareness of and responsibility towards environmental protection. All the employees in each of its branches worldwide are required to comply with local laws and regulations in respect of environment, safety and health. In the absence of local laws and regulations, they are encouraged to provide assistance in solving environmental issues as possible as they can under relevant standards of the Group.

The Group has set up scientific goals in environment and energy consumption, and continuously evaluates, improves and consolidates the synergy among the Group’s operating activities, products and the environment. In addition, the Group communicates environmental information with stakeholders in a timely manner. Furthermore, the Group also focuses on environmental factors in selecting and managing suppliers and outsourcers.

The Group has reduced its negative impact on the environment and natural resources by pursuing high quality products, including the reduction of repair rate of products and reported damage rate of machines. The Group has implemented flexible layout and upgraded its intelligent manufacturing equipment in its production workshops during the reporting period. All pieces of equipment have been connected to optimize the intelligent deployment in the life cycle of products so as to improve operation efficiency of products, reduce the repair rate in the market, and increase the useful life of machines.

(IV) CLIMATE CHANGE

Mainland China, Hong Kong and other regions in PRC and abroad where the Group’s major sales offices located pay attention to major climate policies and comply with local laws and regulations related to environmental protection. Currently climate factors have no material impact on the Company’s production and operation. The Company will closely monitor the impact of extreme weather conditions, such as typhoons, strong wind, extreme cold and humidity, on the production and logistic processes, make corresponding predictions and take preventive measures such as upgrading and optimizing environmental protection products and enhancing product performance so as to reduce the impact of climate change on product performance and direct operation.

(V) CARBON NEUTRALITY

Achieving green and low-carbon development is a top-listed strategy at the national level and a necessary condition for the long-term healthy and sustainable development of our economy.

Comba continues to keep a close eye on the Intergovernmental Panel on Climate Change (IPCC) proposal on the 1.5 °C target and subsequent changes. Comba is committed to halving our total greenhouse gas emissions by 2030, in alignment with the 1,5°C ambition. Comba will adopt vigorous measures to constantly integrate the concept of low-carbon development into product design and all aspects of our operational activities. At the same time, we will work with partners, customers, and suppliers to seek a sustainable low-carbon business environment.

(I) HEALTH AND SAFETY

In order to protect environmental and personal health and safety, pursue social benefits and ensure social interests, the Group has established the Occupational Health and Safety System so as to protect employees’ health and safety. Such systems are operated in combination with quality management system to deliver the Group’s commitment to the community and its employees.

The Group has set up the “Safety First, Prevention Dominance and Comprehensive Governance” guidelines and paid close attention to work safety.

(1) Establishing safety management policies and procedures: The Group has established safety management policies such as the Management Procedure of Safety and Environmental Protection for Construction Project (《建設專案安全和環境保護管理程序》), the Fire Control and Safety Management Regulations 《消防安全管理規定》 ( ), the Safety Production Responsibility System (《安全生產責任制》), the Labour Protection Standards of Production Position (《生產崗位勞動保護標準》) and the Transportation Safety Management Regulations (《運輸安全管理規定》). At the same time, it has refined various safety management policies and safe operating procedures of all levels. Pursuant to which, the person in charge is required to sign the Safety Production Responsibility Paper (《安全生產責任書》), and all the division principals are directly responsible for safety performance of their respective areas.

(2) Continuing to put efforts to improve environmental safety: The Group creates a fine and safe working environment for its employees, provides them with comfortable accommodation, formulates the staff holiday system and the periodical medical check system, offers job skills training and establishes a labour union. Besides, the Group also attaches much value to staff care, health and safety as well as boosting their sense of belonging. With a lot of funds invested, apparatuses and equipment devoted, the Group keeps improving working environment and protects the personal safety and health of its employees with special positions equipped with corresponding appliances for labour protection. Also, its employees’ safety awareness and self-defense capability are strengthened through safety training.

(3) The Company continues to strengthen the publicity and promote training with regard to health and safety of all staff, with a view to developing a culture of health and safety, thereby promoting general improvement of health and safety awareness of all staff, so as to create a good atmosphere of production safety. Carrying out activities such as drills and inspections: A safety manual for production operation is formulated for staff compliance. The Group carries out fire drills every year to further enhance its employees’ emergency response capability. Also, a fire emergency team, which is responsible for urgent evacuation of personnel in emergency, is established to protect its employees’ life and property security. The Group has established special safety inspection system which covers a variety of measures, including daily safety check, seasonal safety check, and safety check before and after holidays. The Group was repeatedly awarded as “Advanced Enterprise in Production Safety (安全生產先進單位)” and “Enterprise with Qualified Work Safety Standardizations (安全生產標準化達標企業)” in Guangzhou City

(II) DEVELOPMENT AND TRAINING

The Group has been focusing on the cultivation of talents. On such basis, the Group advocates the talent concept of “promote the outstanding among flourishing talents” and establishes an effective and systematic talent training system, which is designed to enhance its employees’ knowledge, capability and skills. In view of the Group’s demand for talents arising from its development goals, the Group ensures effective implementation of training from the five aspects of training regulation system, training program system, training instructor system, training material system and training operation system.

(1) Orientation Training for New Employees

In order to help its new employees to adapt to their posts as soon as possible, the Group offer well established orientation trainings, covering trainings on corporate culture, rules and regulations, organization management, quality control system, process and IT know-how and the application of office software, information security, product and professional knowledge, rotation in production system, internship on the marketing and construction sites, occupational health and safety, site visit, team outward bound and other aspects.

(2) Professionalizing Training Camp for Undergraduates

For the purpose of facilitating the undergraduates recruited from university to successfully transform from a student to an employee, the Group has specially organized the professionalizing training camp for undergraduates. It is targeted to deepen their perception of professionalization and their understanding about the Group by way of military training, team outward bound training, group discussion, completing task and challenge, in-class lectures and group activities.

(3) Leadership Enhancement Training for Management

Management serves as the core strength in the operation and management of a corporate. Therefore, the Group continuously organizes a series of management trainings for all its management in a bid to adaptively enhance its management standard and operation capacity. The structured programs and their matching intensive trainings not only strengthen the leadership and management skills of its management team, but also cultivate their international perspective and create the cultural atmosphere to keep on learning, which conforms with the demand for future development of the Group. Meanwhile, such trainings also boost its management’s self-management skills, promote their career development in a more systematic way and better motivate and retain high-profile managers.

The College of Comba Leader Management (京信幹部管理學院) which was established in 2016 has initiated its systematic cultivation of management. It focuses on the combination of training and practice to comprehensively enhance the leaders’ management capability through mechanisms including in-class training, action learning and instructor coaching. The College of Comba Leader Management continued to deepen its development in 2020, forming its learning, growth and development system for leaders based on qualification of appointment of leaders, its instructor team based on senior–, medium–, and junior level management and external practice instructors, its system for assessing effectiveness of training and cultivation based on a four-level assessment model, and its appointment accreditation system based on four aspects including occupational ethics, basic conditions and necessary knowledge, duty discharge and capability.

(4) Establishment of the Internal Lecturers Team

The Group regularly organizes skills upgrading trainings and certification works for its internal lecturers in order to build up the team of internal lecturers, improve their teaching skills, broaden their horizons and promote the accumulation and inheritance of its corporate culture. In addition, the Group invites industry experts to provide its internal lecturers with full set guidance on curriculum development, teaching and presentation. Furthermore, the Group builds its branded lecturer team and delivers a series of excellent courses through after-class practices and getting certification and approval of internal lecturers.

(5) Comba Colorful Classes

The Group specially sets up the “Comba Colorful Classes (京彩課堂)”, an online and offline learning platform, for all its staff, to create an active and strong atmosphere of trainings and satisfy their diversified demands for training. The “Comba Colorful Classes” feature its internal lecturers’ branded courses, combined with the introduction of external general courses. Also, it integrates training into life and pays close attention to employees’ concerns. It also dedicates to offer financial knowledge to all the staff of the Company while enhancing the professional level of its financial employees through “Durian Classes”, a learning platform focusing on financial expertise.

(6) E-Learning Platform

In order to further improve the efficiency of training and diversify the forms of training, the Group has established E-Learning online learning platform since 2018 and continued to provide online learning programmes to its employees in 2020, in order to break the limitation of traditional training for departments and employees and ensure the consistency and efficiency of learning information and through which, the employees may always use their fragmented spare time to study in a systematic manner. Meanwhile, the Group facilitates the development and improvement of its training system and develop the Group into a learning-oriented organization.

Whilst accelerating its own development in a healthy and rapid manner, the Group is devoted to supporting social charity and proactively fulfills its social responsibilities and obligations. It has devoted many human and financial resources to various aspects including public welfare activities, poverty alleviation, donations for school, staff care and expressing greetings and concern to the injured and disabled. In 2020, the Group made a total donation of HK$768,000 in the PRC on aspects such as social charity, poverty alleviation, provision of financial assistance to poor students and social activities.

During the pandemic, the Group actively made deployment for prevention and control of the pandemic and realized zero infection case. The Group was among the first batch of enterprises in Guangzhou which resumed work and production after the Chinese New Year and has made good administrative preparation for resumption of work and production in the three bases. Related measures included daily disinfection in the bases, supply of catering service in canteens, virus testing for staff in relation to shuttle bus and gate entry. At the same time, quarantine rooms were set up in dormitories for employees returning to Guangzhou from high-risk regions hit by the pandemic. The work in relation to prevention and control of the pandemic after resumption of work has gained recognition from both the regional government and the municipal government.

During the preliminary stage of the pandemic, the Group has set up an emergency team for pandemic prevention and control to perform division of labour during the outbreak. The team promptly collected and purchased antipandemic items for employees’ use after the Chinese New Year holiday and for disinfection in the bases. An online platform on Corporate WeChat was also built to promptly release over 20 announcements relating to the related prevention and control, with a view to guiding the Group and various departments to implement prevention and control measures for employees. The schedules of employees during their holidays were also collected to timely keep abreast of their health conditions. Besides, the Group secured supply and timely transportation of antipandemic items, providing comprehensive support and security for resumption of work and production. In addition to a total of 520,000 boxes of meal distributed and 400,000 masks purchased and distributed, with relentless efforts of team in coordination and procurement, the Group has also provided its employees with anti-pandemic items such as Chinese herbal medicines, masks, forehead thermometers, hand wash, disinfectant alcohol, disinfectant, paper hand towel, paper for pressing lift buttons and protective gloves during 2020.

The Group also paid attention to personal care by implementing measures related to employment stabilization to safeguard employees’ benefits. During the fighting against the pandemic, employees who were not able to come to work as normal due to the pandemic in accordance with the requirements of the relevant guidance as promulgated by the government, or employees who were able to work from home were so arranged to work and remunerated as normal, while employees who were not able to work from home were given priority to take paid leaves and be arranged for leave. At the same time, shift of duty was also adopted to secure the income of employees.