YGM Trading : 2020/21 Environmental, Social and Governance Report

YGM Trading Limited

2020/21 Environmental, Social and Governance Report

Contents

1	About YGM Trading Limited	1
1.1	About our company	1
1.2	Our business performance	1
2	About this report	3
2.1	Reporting reference	3
2.2	Reporting period	3
2.3	Scope of this report	3
3	Stakeholder engagement and materiality assessment	4
3.1	Stakeholder engagement	4
3.2	Materiality assessment	4
4	Environment	6
4.1	Sustainability Policy	6
4.2	Use of resources	6
4.2.1	Use of packaging materials	6
4.2.2	Use of energy	7
4.2.3	Use of water	7
4.2.4	Use of printing paper	7
4.3	Emissions	8
4.3.1	Waste management	8
4.3.2	Greenhouse gas and air emissions	8
4.4	Environment and natural resources	8
4.5	Regulatory compliance	8
5	Social	9
5.1	Employment and labour practices	9
5.1.1	Recruitment and employee benefits	9
5.1.2	Occupational health and safety	10
5.1.3	Development and training	11
5.1.4	Labour standards	11
5.2	Product responsibility	11
5.3	Supply chain management	12
5.4	Anti-corruption	12
5.5	Community investment	13
6	SEHK ESG Reporting Guide Content Index	15

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YGM Trading Limited

2020/21 Environmental, Social and Governance Report

1 About YGM Trading Limited

1.1 About our company

YGM Trading Limited ("the Company") and its subsidiaries (collectively "the Group") are engaged in the wholesale, retail and distribution of a wide range of men's and ladies' wear for many globally renowned brands. The Group is also engaged in other business segments including property rental, printing and other related services. As at the end of March 2021, the Group's distribution network comprised 81 points of sales ("POSs") - 38 in Hong Kong, 5 in Macau, 31 in Mainland China and 7 in Taiwan.

1.2 Our business performance

Revenue generated from each significant category is as follows:

	Business category		2021		2020
		HK$'000		HK$'000
	Sales of garments	160,402	201,550
	Royalty and related income	17,820	26,042
	Income from printing and related services	30,403	33,476
	Gross rentals from investment properties	7,556	8,750
	Total	216,181	269,818
	Table 1: Revenue by business category

Revenue by business category in 2021

4%

14%

			Sales of garments
8%			Royalty and related income
			Income from printing and related services
	74%		Gross rentals from investment properties

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YGM Trading Limited

2020/21 Environmental, Social and Governance Report

The following table sets out information about the Group's revenue by geographical location.

	Location		2021	2020
		HK$'000	HK$'000
	Hong Kong	115,314	163,462
	Taiwan	13,489	13,884
	People's Republic of China (PRC)	64,665	60,104
	United Kingdom	4,893	6,234
	Others	17,820	26,134
	Total	216,181	269,818
	Table 2: Revenue by geographic location

Revenue by geographic location in 2021

	8%
	2%		Hong Kong
			Taiwan
30%			People's Republic of China
		(PRC)

54%

United Kingdom

Others

6%

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YGM Trading Limited

2020/21 Environmental, Social and Governance Report

2 About this report

2.1 Reporting reference

This Environmental, Social and Governance Report ("ESG Report" or the "Report") was prepared in accordance with the ESG Reporting Guide ("ESG Guide") in Appendix 27 to the Main Board Listing Rules of the Stock Exchange of Hong Kong Limited ("SEHK"). It should be read in conjunction with the Company's 2020/21 Annual Report (the "Annual Report").

2.2 Reporting period

This Report covers the ESG performance and approach taken by the Group for the year ended 31 March 2021, concurring with the period covered by the Annual Report. The ESG Report is published annually.

2.3 Scope of this report

The scope of this ESG Report covers the Group's primary activities in Hong Kong, Macau and Mainland China. Unless otherwise stated, the key performance indicators ("KPIs") reported covers all offices, warehouses and POSs in the three regions. To display its overall ESG performance, the Group is considering to include additional overseas operations as soon as practicable.

The main entities included within the scope of this ESG Report are listed below. For a more detailed list of the Group's principal subsidiaries, please refer to page 110 to 111 of the Annual Report.

	Name of company			Place of incorporation/
			establishment and business
	YGM Marketing Limited		Hong Kong
	YGM Marketing (Macau) Limited		Macau
	YGM Trading Company Limited		Guangzhou
	Shanghai Ji Yang Trading Company Limited		Shanghai
Table 3: Entities within the scope of the Report

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