1 Message from Vice Chairman and Chief Executive P.3~4 About this Report P.5~6 About Us P.7~12 Our CSR Approach P.13~20 CSR Highlights P.21~26 Responsibility to the Environment P.27~41 Responsibility to our Employees P.42~63 Responsibility to our Customers P.64~69 Responsibility to Society P.70~84 Your Feedback P.8 5

2 Message from Vice Chairman and Chief Executive

It is with great pleasure that I present to you the third Corporate Social Responsibility (CSR) Report of Hong Yip Service Co. Ltd. For over 50 years of property and facilities management business, we have continuously improved our services to ensure that we can always exceed the expectations of our customers and stay competitive as a leading company in the industry. Our commitment and efforts have resulted in healthy business growth and recognition from our customers, business partners and other stakeholders.

With the expansion of our business activities and operations, we have also come to realise our impact on the environment and local communities and our responsibility to manage them. Furthermore, being a socially responsible company with a view to sustaining our business in the long term, we must integrate CSR into our business strategy. CSR is much more than running a business ethically and delivering top quality services to our customers. We are responsible to our employees for providing a safe and healthy work environment, work-life balance, rewarding careers, personal development opportunities, and competitive compensation and benefits. We are responsible to the environment for preventing pollution, making the best use of resources to minimise generation of waste, and educating people about environmental protection as all these can only be achieved by the concerted efforts of related parties. We are also responsible to local communities for serving as a caring neighbour, investing in building a harmonious community, and advocating good environmental practices.

3 This Report will tell you about how we approach the CSR challenges, what we have achieved so far and what we aim to achieve in the coming year. I am particularly proud of our achievements in providing platform to employees and customers serving the community and environmental initiatives at our managed properties, and I would like to thank the dedication and enthusiasm of our employees and the occupants in this and other CSR initiatives. For our employees, we continue to create a more structured and transparent career and personal development path. With the establishment of our People Development Academy in 2007, we are committed to nourishing our people to unleash their full potential. We will also continue to engage with our customers to find out about their needs and concerns as well as to educate them about living a healthy lifestyle and greening the environment. We have always been actively involved in community service projects, whether by sponsorship or by the contribution of our employee volunteer team. The experience has been rewarding for all involved and we look forward to embarking on more life enriching projects in partnership with community and charity groups in the future.

I sincerely hope you will enjoy reading our CSR Report, which is a milestone in our long but promising CSR journey. Your feedback on our CSR performance and reporting is very important to us and I welcome you to write to us at [email protected].

Ir. Alkin Kwong JP Vice Chairman and Chief Executive 4 About this Report Objective and Scope This Report aims to inform our stakeholders about the Corporate Social Responsibility (CSR) activities and performance of Hong Yip Service Co. Ltd for the calendar year 2017. The background information is provided on some of our CSR initiatives that have been in progress during 2017. This Report also covers our challenges and future objectives and targets in various CSR areas.

The scope of this Report focuses on our managed properties and Head Office in .

Approach to this Report Firstly, this Report gives an overview of who we are, what we do, our business philosophy and our CSR approach. A summary of CSR highlights is included to showcase our key CSR achievements in 2017. The Report then gives more details on our CSR activities and performance in four main sections: • Responsibility to the Environment • Responsibility to our Employees • Responsibility to our Customers • Responsibility to Society

5 Stakeholder Engagement

We have limited the stakeholder engagement for our CSR Report to include the most important asset of our Company - our employees. Their participation has been invaluable to the development of this Report. We have a diverse list of stakeholders including our customers, contractors/suppliers, business partners, non-government organisations (NGOs), the local community, and regulatory authorities. We already engage with some of these stakeholders with regard to CSR issues, e.g., with our customers through our customer surveys and home visits, and with NGOs through our community projects.

6 About Us

Hong Yip Service Company Ltd (“Hong Yip”) is a wholly owned subsidiary of Ltd (SHKP). With over 50 years of solid property management experience, we have established ourselves as one of the leading property and facilities management companies in Hong Kong. As of 31st December 2017, our management portfolio consists of 1,571 buildings with over 127,800 units, covering a total gross floor area of over 110 million square feet, of which 51% (based on gross floor area) relates to properties developed by Sun Hung Kai Properties Group. External parties such as Hong Kong Polytechnic University, other property developers and owners’ comittees also appoint us to manage properties on their behalf.

We provide a wide range of professional services including security and IT system, cleaning, landscaping, maintenance and repair, management of car park, pool and clubhouse, shuttle bus service, etc. We also offer many value-added home convenience services to our customers including daily mail drof-off, magazines and newspapers delivery, laundry, seasonal banquet offer,minor repair etc. Furthermore, our Quality Assurance Programme helps to increase the property value and upgrade the living standard and environment of our customers. 7 Classification of Our Management Portfolio (Based on Gross Floor Area)

Residential 2%

28% Commercial

Mall

2% 64% 4% Industrial

Facilities

For up to date information on our portfolio, visit our website: www.hongyip.com/eng/index.htm

8 The main ‘Service Excellence’ requirements of our employees are: Proactive Smiling Friendly Greetings Grooming

9 Our Commitment

Quality Policy Environmental Policy We will deliver premier services with We will comply with environmental legislations ultimate courtesy and manage every and support the government in its pursuance of property to the highest quality environmental protection in order to: standards. • Prevent pollution; • Minimise generation of waste; and Occupational Safety and Health • Make the best use of resources. Policy We will comply with occupational Complaint Management Policy safety and health legislations to ensure To track, to follow up and to handle every the safety and health of our employees complaint with heart in order to exceed customer and related parties. satisfaction.

Information Security Policy We stay abreast of the latest information security to monitor and prevent intrusion.

10 We communicate our objectives, strategies, core values and performance expectations to all employees by:

• Conducting Annual Strategic Planning Meetings chaired by the Directors and attended by Senior Managers. • Distributing the Quality, Occupational Safety & Health and Environmental Policies Cards and Service Excellence Guidelines to all employees. • Providing induction training courses to new employees. • Conveying the objectives and strategic implementation plans in Head Office Executive Meetings, Area Meetings and Site Meetings attended by Senior and Area Managers and Building Supervisors. • Encouraging open communication to all levels of the Company by distributing messages through email, intranet, etc.

A handy pocket sized card distributed to all employees with a message on the Company’s commitment and policies from Alkin Kwong, Vice Chairman and Chief Executive. 11 Hong Yip Service Co Ltd - Organization Chart

Internal Audit Department Head of Internal Audit Headed by a certified public accountant (ACIB FHKSA FCCA AHKIB CGAB CPA) is responsible for internal Organisational financial and operation audit.

Business Development & Accounting Department Chairman Structure Head of Business Development & Accounting Dept Headed by a certified public accountant (FCCA FCPA) is responsible for financial planning & reporting, Vice Chairman & financial analysis, treasury and business planning & Region 1: Chief Executive development. General Hong Yip’s corporate (B.Sc (Eng), PgDIT Manager C.Eng MIStE FHKIE Building & Facilities Management Department departments include Building & Directors RPE AP RSE) Region 2: Headed by qualified and experienced managerial staff General (MCIH MHKIH RPHM) are responsible for overall Facilities Management, Manager planning and provision of professional property Technical Services, Information management services. Security and Discipline Department Region 3: Technology, Procurement & Directors Mr. Joseph Yam General (MCIH MHKIH Headed by an experienced ex-police superintendent Manager Contracts, Community & Public RPHM) Human Resources & Admin Department Region 4: Relations, Human Resources & Head of Human Resources & Administration (DBA LLM ACMA CGMA FHKIArb ACIS ACS General Administration, Business MHKIHRM FHKPMA FITP) is responsible for the Manager overall management and provision of HR, training and development, and administration functions. Development & Accounting and Region 5: General Internal Audit. The Building & Community & PR Department Manager Head of Community and Public Relations Facilities Management Headed by a qualified property manager (MCIH FHKIH RPHM). Region 6: Department is divided into six General Financial Planning & Controls Department Manager Head of FP & Controls different regions covering our Headed by a qualified accountant (ACCA) is responsible for financial planning & reporting, financial managed properties on Hong analysis for the Hong Yip Group

Kong Island, , and New Technical Department Assisted by over Head of Technical Services 100 Area Headed by an experienced qualified professional Territories, and also our Managers, Heads engineer (MHKIE MHIREA MSOE RPE REA BEAM Pro of each region are MEM(UTS) MBSOMES) in building R&M, sustainability, responsible for investment properties. safety and health and is responsible for supervision of overall quality over 600 technical /maintenance staff. control of day-to- day property Procurement and Contracts Department management, pre- Head of Contracts intake planning Headed by an experienced surveyor (BSc(Hon)in QS and community PD(Arb) is responsible for overall supervision of relations. contracts and tenders.

Information Technology Department Head of Information Technology (IEEE Computer Society) is responsible for the overall planning, organizing and execution of all IT functions. 12 Our CSR Approach

Quality Service ISO 9001:2015 certified for all the properties under our management.

Occupational Safety and Health OHSAS 18001:2007 certified for four properties under our management.

Environmental Management ISO 14001:2015 certified for Head Office and four properties under our management.

Complaint Management ISO 10002:2014 certified for Head Office and five properties under our management.

Information Security Management System ISO 27001:2013 certified for Head Office

Energy Management ISO50001:2011 certified for Head Office

We strongly believe that we have a corporate responsibility and ability to simultaneously pursue economic prosperity, environmental conservation and social equity. As a property and facilities management company, our business operations and activities are very much customer-focused. Therefore, we have included a ‘Responsibility to our Customers’ section to demonstrate our commitment and efforts in creating an ideal living environment for our customers.

13 Management Leadership

Hong Yip’s Vice Chairman and Chief Executive, Alkin Kwong, leads the Company by formulating policies that set out our business development directions and ensuring that our objectives and targets in Quality, Occupational Safety & Health, Environmental and Complaint Management are met. He produces the Annual Strategic Plan each year which reviews past performance and details future objectives and targets for the Company.

Ms Cimmy Yuen and Mr. Ip Siu Chuen are also responsible for ensuring the effective operation and continuous improvement of the overall property management system of Hong Yip. In particular, they focus on the compliance of the integrated management system with the international standards of ISO 9001, OHSAS 18001, ISO 14001, ISO 10002, ISO27001 and ISO50001, and render guidance on general management issues. They also lead our New Project Team which offers expert advice on property management requirements and services when the property is in the design, planning and construction stages, with a view to provide a quality living standard and an ideal living environment for our customers. Handover inspections are professionally conducted to ensure that services exceeding our customers’ expectations are provided upon occupancy.

14 Code of Ethics and Business Conduct

To promote clear understanding of local regulations relating to ethical practices and to ensure strict adherence to ethical behaviour by our employees in daily operations, a set of Guidelines on Business Ethics based on local regulations and company requirements are distributed to our employees. Detailed explanation of the regulations is provided during employee induction and formal training courses. Our Employee Handbook also details employees’ responsibility to attain the highest ethical standards in their daily business dealings and in the working environment. In our purchasing activities, we have written procedures in place to ensure proper monitoring and execution of quotation and tendering processes in accordance with good business ethics. These measures are vital in providing a level-playing field for business activities and fostering a high level of trust among employees, subcontractors, suppliers and customers alike.

Internal Audit

Our Internal Audit department consists of ten employees and their role is to evaluate, monitor and improve the effectiveness of the controls and processes across the Company. They perform financial review and operational review on issues including complaint management, customer satisfaction, food and hygiene standards, and cleaning services at our sites. They are also responsible for carrying out environmental and safety audits on Hong Yip’s operations. The Internal Audit department reports directly to the Chairman.

15 Environmental and Safety Management

16 Internal Committees

Our Green Committee and Safety Committee are responsible for the continuous identification, evaluation and management of significant environmental and safety issues associated with Hong Yip’s operations. Each of the six regions and the Head Office are represented by the Committee members.

The Green Committee focuses on implementing measures and activities to our staff and throughout our managed properties. In addition, the committee strives to upgrade the environmental performance of our Head Office and four properties under our management; New Tech Plaza, Wonderland Villas, The Parcville and Beneville, all of which have achieved ISO 14001 certification. The Committee members meet at least four times a year to establish environmental objectives and targets for the properties, formulate and implement environmental programmes, collect environmental data for monitoring and evaluation, and make suggestions for continuous improvement. The Committee is also a driving force for environmental education across the Company and promoting source separation of waste as well as carbon emissions at our managed properties. Whilst the Green Committee focuses on the operational performance of the ISO 14001 certified properties, the Environmental Strategy Committee, chaired by Director, aims to drive the environmental agenda throughout all of Hong Yip’s operations.

The Safety Committee meets regularly to discuss various issues including the safety risks of work procedures and the necessary measures to mitigate them, the effectiveness of these measures, accidents occurrence and prevention, and promotional activities for work safety.

We have appointed a Safety Officer and an Environmental Officer, who reports directly to two Directors. 17 Green Procurement Guidelines

We have a set of Green Procurement Guidelines that supports the use of environmentally-friendly products and services in order to conserve natural resources, reduce waste and protect the environment. There are four main elements to consider when choosing products/services;

• Avoidance of use of harmful substances during production • Application of the ‘4Rs’ of waste management: Reduce, Reuse, Replace and Recycle • Energy efficiency of the product/service • Compliance of the product/service with environmental legislations

Our Green Procurement Guidelines cover many different products and services, including paper and pulp products, stationery, plastic bags, detergents, furniture, electrical appliances, printing services, lighting systems, and buildings repair and maintenance services. We endeavour to apply the Guidelines as much as possible during our procurement process, while considering practicality and economic factors.

18 Environmental and Safety Requirements for Contractors

When contractors wish to apply for inclusion in Hong Yip’s approved vendors list, they have to acknowledge and sign Hong Yip’s Company Policy on ‘Environmental protection requirements’ and ‘Occupational safety and health requirements’. These include compliance with legal requirements, effective management of resource use, waste and wastewater, use of recycled materials, proper handling of hazardous substances, provision of Personal Protective Equipment (PPE) and safety procedures, etc. To maintain a high level of performance of our contractors, we carry out annual performance assessments on the approved vendors based on the ‘Environmental protection requirements’ and ‘Occupational safety and health requirements’. In Hong Yip’s standard tender document, specific clauses for ‘Environmental protection responsibilities’ and ‘Safety precautions’ are stipulated in the general terms and conditions. The contractors should ensure that their works are carried out in compliance with those clauses and requirements.

19 Did you know?

Every year, we organise a ‘Best Contractor Competition’ to give recognition to contractors who demonstrate their commitment to the pursuit of service excellence. Since 2008, we decided to further encourage contractors to improve their environmental, health and safety performance by introducing the Environmental Excellence Award and Health and Safety Excellence Award. Applicants are evaluated based on their contractual performance on the following five categories:

• Construction/service quality • Emergency response • Follow-up services • Health and safety performance • Environmental protection

A total of 187 companies (including seven of our associate companies) entered the competition in 2017.

Winners of the Engineering Construction Project Award in License C Category were Trustful Engineering & Construction Co Ltd, Lik Kai Engineering Co Ltd and Lik On Security Co Ltd while License B Category were Yik Kee Decoration Eng. Co Ltd, Pilot Building Services Ltd and Hang Tat Engineering Company. Winners of the Non-Engineering Project Award in License C Category were Nixon Cleaning Co Ltd and Hong Chui Landscape Co Ltd while License B Category were Blossom Garden Co Ltd and Blue Moon (Int’l) Services Company.

20 5. CSR Highlights

Below are highlights of our CSR achievements in 2017:

21 CSR Highlights Below are highlights of our CSR achievements in 2017:

Responsibility to the Environment

Certificates Attained from the Hong Kong Awards for Environmental Excellence (HKAEE) Hong Yip adopts innovative green technology to enhance environmental performance in property management. During the year, 13 certified BEAM Pro were employed to improve and promote environmental protection issues, including energy efficiency, material use and waste management.

Hong Yip also support government initiatives by signing the External Lighting Charter which aims to minimise light pollution and energy waste. During the year, we received more than 300 Hong Kong Awards for Environmental Excellence (HKAEE) Certificates in recognition of outstanding environmental achievements.

HKAEE Certificate No. of Certificates Hong Kong Green Organization 103 Certificate (HKGO) (香港綠色機構認證) Wastewi$e Certificate (環保減廢標誌) 158 Energywi$e Certificate (環保節能標誌) 108 IAQwi$e Certificate (環保空氣質素標誌) 3 Carbonless Certificate (減碳證書) 8

22 Reducing Energy Consumption and Carbon Footprint

Electricity generation currently accounts for about 70% of Hong Kong’s carbon footprint, and 90% of the power generated is consumed by buildings. Hong Yip strives to improve energy efficiency in new and existing properties to reduce overall energy consumption and shrink footprints. The Government’s 4Ts (Timeline, Targets, Together, Transparency) framework has been followed with the intention to contribute to the Energy Saving Plan’s energy reduction target.

We monitor building electricity consumption of the building under our management and disseminates the latest research and international best practices. During the year, a total of 192 buildings in the property portfolio were resulting in the reduction of electricity consumption by more than 8% over previous year, and reduction of carbon emission by 22% over the past 10 years.

23 Responsibility to our Employees

Continued to run our Mentorship Programme and Talent Development Programme in order to provide the required professional and personal development for our employees.

Over 16,000 attendees participated in our comprehensive and multi-disciplinary trainings.

Based on the advice of our Health and Safety Committee, a number of employee benefit programmes were introduced to give due care to the occupational health of our employees. These programmes included free flu vaccination to all office staff and company-arranged preferential scheme for staff and their dependents on flu vaccination, health check and dental treatment.

In order to arouse the awareness of occupational health and safety matters to our customers, we participated actively into the “Safe & Health Estate Accreditation Scheme”, which was organized by the Occupational Safety and Health Council. The result was very encouraging. , Noble Hill, Peak One, Aria, , & (Residential) achieved Excellent Performance while Bedford 28, Mei Chung Court, , and Wonderland Villas granted Outstanding Performance.

24 Responsibility to our Customers

• Continued with our Quality Assurance Programme(QAP) to upkeep and upgrade the hardware of our managed properties. As a result, 256 properties have passed the assessment in the 2nd phase of QAP. As a whole, 82.3% of our managed portfolio accomplished the renovations in phase II. • In the 2017 customer survey of Hong Yip’s property management services by SHKP, 97 scores out of 100 achieved in the customer satisfaction result. • The clubhouses at our managed residential estates, Valais, Royal Peninsula, and Imperial Cullinan were awarded the Hong Kong Recreation Management Association. • The Q-Mark Certificate (2004-2017) awarded by the Hong Kong Q-Mark Council Federation of Hong Kong Industries (the first property management company to be awarded) to recognize the finest customer service quality of Hong Yip.

25 Responsibility to Society

• 700 employees participated in our corporate volunteer service, contributing over 50,000 service hours outside of work. • 103 employees received individual recognition and 21 volunteer teams received certifications from Social Welfare Department for their service hours. • Residents from 19 of our managed residential estates volunteered in community services for the elderly and received the ‘Caring Estate’ logo from the Social Welfare Department. In addition, five estates were awarded the ‘Leading Caring Estate’ logo. • Received the ERB Excellence Award for Employers in the 1st, 3rd – 10th sessions of the ERB Manpower Development Scheme (organised by the Employees Retraining Board). • Received the “ Outstanding Social Enterprise Supporter Award in the Tithe Ethical Consumption for consecutive 3 years since 2015 (organized by Fullness Social Enterprises Society)

26 Responsibility to the Environment

27 Energy Management

Through the success of our energy saving programmes, we have made accumulated electricity saving of over One Hundred and Fifty Four million kWh since 2005, which is equivalent to over One Hundred Thousand tonnes of CO2e emission reduction.

28 The Trend of Electricity Consumption of Hong Yip’s Managed Properties

Note: The above figure shows the electricity consumption based on the 2005 portfolio and includes public areas and facilities of our managed properties only (excludes Head Office).

29 The Trend of CO2e Emission of Hong Yip’s Managed Properties

Note: The above figure shows the indirect CO2e emission* from electricity consumption based on the 2005 portfolio and includes public areas and facilities of our managed properties only (excludes Head Office).

*Remarks: CO2e emission = electricity consumption (kWh) x emission factor (kg CO2e /kWh). An emission factor of 0.7 kg CO2e /kWh is used based on the ‘Guidelines to Account for and Report on Greenhouse Gas Emissions and Removals for Buildings (Commercial, Residential or Institutional Purposes) in Hong Kong’ published by the Environmental Protection Department and the Electrical and Mechanical Services Department in July 2008. 30 Energy Saving Policy

In order to control energy consumption, our Energy Saving Policy focuses on establishing energy saving processes in five main areas; energy audit, operational planning of the building services system, energy saving program implementation and communication, investment in energy saving and promotion to the public. Energy saving products including VVVF drive for lift systems variable, frequency drive for fresh water pumps, and energy saving lighting systems sensor control for lighting, EV charger are to be considered.

Energy Saving Taskforce

Our Energy Saving Taskforce was established to monitor energy consumption at our managed portfolio. The main objectives of the Taskforce include the following:

• Setting out Guideline to promote energy saving practices applied in buildings • Promoting building to conduct energy audits to identify any Energy Management Opportunities (EMOs) • Organizing energy saving workshop and training to frontline staffs • Carrying out research and development in energy efficiency products • Updating the latest legal and technical matters

31 Energy Saving Taskforce

Our Energy Saving Taskforce was established in 2002 to monitor energy usage at our managed properties and also to manage and achieve our energy saving target. Our aim is to protect the environment, as well as bring benefits to the occupants such as reduced electricity costs and a more comfortable living environment. The objectives of the Taskforce include the following: • Perform energy saving audits to identify any Energy Management Opportunities (EMOs) • Organise energy saving training to frontline employees • Review and implement Hong Yip’s energy saving policy • Carry out research and development in energy saving products available on the market • Update on the latest legal and technical issues on energy saving

Energy Saving Policy

In order to control energy consumption, our Energy Saving Policy focuses on establishing energy saving processes in five main areas; energy audit, operational planning of the building services system, energy saving programme implementation and communication, investment in energy saving and promotion to the public. Energy saving products including VVVF drive for lift systems variable, frequency drive for fresh water pumps, and energy saving lighting systems sensor control for lighting, EV charger are to be considered.

32 Hong Yip won 18 Awards including 5 Gold Awards in the Best Landscape Award for Private Property Development 2016

The Best Landscape Award for Private Property Development 2016 Award aims to sustain the betterment of the living environment in private property and to promote excellence in greening by outstanding landscape design and horticultural maintenance. Hong Yip won 18 honours including 5 gold awards & 6 environmental efficiency awards in the Best Landscaped Award to recognize its determination to greener commitment. Hong Yip’s strong team attains the horticultural maintenance in the highest standards to fulfill customers’ need.

33 Carbon Audit Hong Yip emphasizes on carbon reduction, there are 50 buildings voluntarily conducting carbon audit every year to monitor carbon emission. For example, photo-voltaic cells and a windmill installed in the Parcville to utilize natural resource. Other implementations under our management portfolio include: control lift operation during non-peak hours, keep air- conditioned at proper temperature in public area, install timer to switch on/off central air- conditioning, replace to T5 and install sensor of lighting in common area to further reduce carbon emission.

34 Waste Management

In 2017, over 9,310 tonnes of waste from our managed residential estates was sorted for recycling, achieving a 9.1% recycling rate . At our managed C&I buildings, over 2,307 tonnes of waste was sorted for recycling, which is equivalent to a 6.8% recycling rate.

As a property management company, we have the responsibility in encouraging and facilitating waste reduction, recycling and reuse because the growth of municipal solid waste from households, industry and commercial operations is putting enormous pressure on the landfills in Hong Kong. By providing effective waste management facilities and activities, we hope to raise awareness of the importance of environmental protection, enhance the recycling outcome and create a clean and healthy living environment for occupants. At one of our managed residential estates, La Costa, we have upgraded the design and durability of the domestic waste collection facilities to help maximise source separation.

Plastic recycling bins changed to metallic ones which are neater and more durable.

Tailor-made domestic waste collection boxes at back stairway of each floor to maximise capacity and improve cleanliness.

35 “Quality Water Recognition Scheme for Buildings” – Water Supplies Department Hong Yip fully supports the Water Supplies Department’s Quality Water Recognition Scheme for Buildings since its launch in 2002. To ensure that our residents can enjoy good quality of water at the taps, Hong Yip strives to maintain plumbing systems of our managed properties properly. In 2017, 84 certificates are acquired by buildings.

36 Water Conservation

Rainwater Recycling System at The Parcville For the purpose of reducing water consumption, an underground rainwater storage tank was installed at The Parcville. Rainwater and overflow from nearby rivers during heavy rain is collected via surface channels to the 800 m3 storage tank. The water is treated by a filtration system and delivered for irrigating plants and washing open areas within the estate. This rainwater recycling system also helps to delay and reduce the risk of flooding.

37 The Green Building Concept

Our sustainable effort towards effective property management is demonstrated at the unique locality of . The green building concept adopted at this 190,000 square feet development allows residents to enjoy the natural environment and a sense of real peace and tranquility. Around the estate, thousands of trees, including many old trees, have been conserved within beautifully landscaped gardens. Inside the estate, the versatile use of natural ventilation, spacious and well-designed interior, together with an efficient building management programme help to enhance the green living style of the estate.

38 The Green Building Concept

‘Green’ car park An innovative environmental design was implemented at The Parcville car park which uses roof openings to increase the use of natural light and improve air flow and quality in the car park. As a result, operation of the ventilation system is reduced which conserves energy. Trees are planted at each of the openings to bring environmental and aesthetic benefits. In the 2008 & 2010 Hong Kong Awards for Environmental Excellence (Property Management Sector), The Parcville acquired Merit Award.

39 Environmental Performance at our Head Office

The Head Office located at the and World Tech Centre, which are certified by the World Green Organization under the Green Office Awards Labelling Scheme (GOALS). The main environmental concerns at the offices are waste management, energy and resource use and air quality control. Current practices include separating waste paper, aluminium, plastic, toners, cartridges and batteries for collection by our associate company, Nixon Cleaning Co. Ltd. We launched the electronic procurement system in 2007 at the SHKC to increase workflow efficiency and promote a paperless system. We also encourage contractors to use electronic means for submission of contractual documents in order to save paper and support our Environmental Policy.

We consider the reusability of office equipment and stationery when making purchases and provide internal guidelines via memos to remind employees to save paper, switch off lights and PCs, etc. We have been installing T5 fluorescent tubes since 2006 at the SHKC and standalone light switches for individual office units since 2007. At the World Tech Centre, T5 fluorescent tubes were installed during renovation and we executive air quality control four times a year. We also have a set of vehicle management guidelines that include environmental considerations during the operation and maintenance of company vehicles.

40 Environmental Performance of our Contractors

We have certain procedures in place to promote a high level of environmental and safety performance among our contractors. Please refer to details under ‘Environmental and Safety Management’ in the ‘Our CSR Approach’ section of this Report.

Did you know? Learning about environmental protection and taking part is fun and rewarding! Our employees took part in a variety of activities, including: • Ma On Shan Tree Planting Day • Slogan Design Competition • Pollution free Picnic Day

Key challenges ahead

• More widespread implementation of energy saving initiatives to achieve our energy saving target set. • Continue to promote source separation of waste for recycling at our managed properties and improve our waste data collection system so that we can monitor and evaluate our waste management practices more effectively. • Educate individual owners and Owners’ Committees about the importance of good IAQ. Given that the IAQ certification scheme is voluntary, it is necessary to seek their acceptance for performing IAQ assessment to achieve certification and approval for the costs involved.

41 Responsibility to our Employees

42 As of 31st December, 2017, Hong Yip employed close to 7,000 people, of which 87% were full time employees. Attracting and retaining the best talent, helping our employees to reach their full potential, ensuring their well-being and health and safety at work are all essential elements to the growth and sustainability of our business

Our Principles Employee Handbook Following the issuance of a comprehensive employee handbook for operational staff 2007, the one for general staff was introduced in 2008 in order to communicate the Company’s important messages such as vision, mission and values. It contains information on our integrated management system (IMS), employment terms and conditions, employee benefits, training and development, and relevant legislation and Company policies that every employee should adhere to when carrying out their duties.

Equal Opportunity We have been refining our Equal Opportunity Policy from time to time to assure that any employee or applicant for employment will not be discriminated against because of not only gender, pregnancy, disability, marital and family status, age or sexual orientation, but also race. We will not tolerate discrimination, harassment and offensive behaviour in the workplace as we believe all employees who have the right to work in, and also the responsibility in creating a pleasant and productive working environment. 43 We have employed close to 1,000 re-trained employees referred by social service organizations, which accounts for about 31 % of new hires in 2017. We also partner with four local universities and 2 other tertiary institutions in offering work attachment programmes (around 100 internship trainees). In addition, we participated in Pathfinding Pavilion of Breakthrough in which students can acquire work-based learning experience to prepare for their work upon graduation.

Voice it out

We encourage our employees to raise any work-related grievances and concerns they might have through various communication channels available: the managers in their departments, the Human Resources & Administration Department, the annual executive review meeting through their representative or directly to the Top Management including the Chairman. The Internal Audit department will investigate and report on the issues raised as appropriate.

We provide the ‘Hearty Caring’ service to all employees of Hong Yip and its subsidiary companies, including their immediate family members. The telephonic counselling service offers professional advice and guidance to help callers deal with their personal concerns and regain their happiness.

44 Providing Mentorship

We launched the Mentorship Programme for frontline employees in 2006, Mentorship Programme for general administration employees in 2010 and Buddy Partner Programme for officers and managers in 2017 to achieve the following objectives:

• Make each of our managed properties to become an individual training centre • Enable new employees and those requiring support to receive appropriate mentorship • Drive Hong Yip to become a leader in quality management • Develop sense of belonging • Enhance the effectiveness of teamwork across the broad

45 Example of Mentorship Programme for frontline employees :

Suitable employees working at supervisory level or above are nominated as mentors. They attend a full day mentorship training before sitting for an examination, which they have to pass before being qualified as mentors.

To ascertain the overall effectiveness of the Programme, spot-checks will be performed after a month of mentoring to ensure proper training records have been kept by both the mentors and mentees, and to assess the skills and knowledge of the mentees.

With the full support of the concerned departments and the dedication of the participants, our target of matching one mentor to four employees are achieved continuously.

In 2017, 1,800 staff have participated in respective mentoring programmes.

Did you know? The Excellence in Service Programme for front line employee is the first QF SCS–based programme operated as in-house training programme amongst all companies in Hong Kong

46 Training and Development

Comprehensive and Multi-disciplinary Training

We always strive to empower our employees to perform their daily tasks effectively and provide training programmes to cater for their personal and career development.

In 2017, we offered various types of training to meet individual learning and development needs.

For frontline employees, we organized a wide range of classes such as Workplace Mentoring Programme, 5-Star Customer Service Programme, Qualification Framework Programmes (Level1-Level3), etc.

For office-based employees, we provided Centralized Training Programme which included topics like Controversial Issues & Hot topics, Complaints and Crisis cases Handling, etc. Others include the Personal Effectiveness Training Programme covering topics like Innovation, Time-Management, Conflict Management, etc.

We also offered e-Learning via our Company Intranet and our mobile application, WeChat, to staff such as: Skills-based training videos, Language, Computer Application, New Management System Implementation, etc.

47 Training and Development

Did You know?

How many hours of training on average were given to Hong Yip’s employees in 2017?

Employee category Hours/employee 2017 2016 Frontline 26 26 Technical 41 40 Middle management upwards 43 42

48 District Instructor Scheme

• To equip all newly joined operational level staff with the required knowledge, skills and attitude to provide unrivalled excellent services to customers, Hong Yip deployed District Instructor Scheme from the year end of 2015 to train up qualified trainers. • Hong Yip had facilitated area’s localized training services, including but not limited to customer service, complaint handling, security and emergency cases handling, to those new staff as well as for those existing staff by both classroom and on-site role-play training to replicate and enhance the required knowledge and competence in their daily operations. • Moreover, various cases and experience of frontline staff will be kept at knowledge management platform for training purpose in order to maintain a long-term and continuous learning atmosphere. Developing Talent

Attracting, retaining and developing elites within Hong Yip and having a comprehensive succession management plan are difficult yet vital challenges that we have to deal with in the area of organizational management. Therefore, our Talent Development Programme aims to carefully select and develop managerial talent from within the Company to ensure leadership excellence and continuity. Employees are selected according to their performance, longevity, zeal, and managerial competence and potential.

Talent Development Programme – progress in 2017

Who are the participants? From fourth-tier staff (Senior Administrative Officers) to Senior Managerial Staff

How long is the Programme? About two years

What’s involved? Peter Drucker's Executive Development Workshops, Executive Diploma in Elite Development, Assessment Centre - Personal Aptitude Test, Outward Bound Training, a series of e-learning programmes, submission of individual and group projects, teamwork training and sharing sessions.

What’s the outcome? Improve communication, leadership and decision-making skills. Gain knowledge in effective team work. Enhance talents’ professionalism and explore the potential of employees 50 Qualifications Framework (QF) Being the leader in property management industry, we shoulder the responsibility for further development of the professionalism in the industry and setting up the role model in this respect. As caring company, we continuously nurture talents and encourages staff to life-time learning. Echoing with Government’s introduction of QF, we submitted our internal courses for accreditation to Hong Kong Council for Accreditation of Academic and Vocational Qualifications (HKCAAVQ) in order to help our staff to get public recognized qualifications and articulate to further Did you know? learning. Being the company in the Property Management industry to achieve The most number of QF-accredited accreditation of internal courses. programmes in the industry • 15 QF Programmes were accredited by Did you know? HKCAAVQ as at 2017 The number of staff in our company who had • Content related to “Customer Service”, successfully received Recognition of Prior “Skills-based”, “Horticulture”, “Work Learning (RPL) certificates is the largest Safety” etc. from any single Company in all the industries with RPL mechanism.

51 Recognition of Prior Learning (RPL): • At present, over 1,000 staff had successfully applied RPL with QF Level 3 or above. • We assisted and sponsored our staff to attain RPL qualifications. • Over 2,800 staff had successfully applied RPL Certificate • We are the first company to achieve the most no. of RPL certificates and with the most no. of staff who applied RPL certificates in all industries.

Credit Accumulation and Transfer (CAT) • We have signed Memorandum of Understanding (MOU) for CAT with different institutions since 2014. We are the first company having signed this kind of arrangement with Tertiary Institutes in Hong Kong. • Our staff can apply for recognition of credit previously earned while they are attending programmes in Hong Yip People Development Academy and/or other educational institutes, if they have completed a recognized QF programme or obtained the "RPL" certificate(s) in our company or other institutions

52 Our People Development Achievement

We always provide professional training programmes for our employees to improve their performance and meet business needs. To strengthen the quality of Training & Development and have our employees’ efforts better recognized by the community, we from time to time participate into competitions on training programmes organized by local reputable organizations and international association such as Excellence in Practice Award organized by the Association for Talent Development (ATD, formerly ASTD), the Award for Excellence in Training organized by the Hong Kong Management Association (HKMA) and the contest run by Asia Pacific Customer Service Consortium.

From 2010-2017, Hong Yip won the award of Gold for 8 consecutive years in “Security Services Best Training Awards” organized by Police Crime Prevention Section and became the only company in the property management industry to receive 8 gold medals consecutively since its launch.

“ERB Excellence Award for Employer” which was organized by Employee Retraining Board, had been held ten times since 2008 and Hong Yip was the company in all industries that won the most numbers of the awards, 9 out of 10 times.

Hong Yip won “The Grand Prize Award” of “Manpower Developer Award Scheme” which was organized by Employee Retraining Board, for consecutive 6 times , and became the only company in all industries to receive the award since its launch.

53 Our staff also actively participated in “Qualifications Framework Award Scheme for Learning Experiences”, and we had a total of 24 winners in “Property Management Industry”, “Security Services Industry”, “Human Resources Management Industry” and “Arboriculture & Horticulture Industry” in the year of 2013-2017 (3 winning places in each year’s industry sector). We had the most no. winners from the same company for each of these industries.

In 2010, Hong Yip received a “Workplace Learning and Development Excellence in Practice award” from the ATD. The award is regarded as the “Oscars” in the people development and training industry in the world. This reflects the international standard Hong Yip has achieved with horticulture and associated training.

Did you know? ATD (formerly ASTD), established in 1943, is the world’s largest association in which members come from more than 100 countries. In 2010, there were 178 entrants in which 16 corporations won the Excellence in Practice Awards in different categories. Hong Yip has honored to be granted the category of “Workplace Learning & Development” to demonstrate the launch of the “Horticultural Training Programme” that can turn the Company’s existing horticultural capability into a competitive strategy. This shows that Hong Yip has attained high standing of people development in the property management industry.

54 Hong Yip People Development Academy (HYPDA) – Established since 2007

Core Value: Proactive, Dynamic, Learning, Experience Objectives:  Cultivate first class property management personnel who can contribute to the long term development of Hong Yip  Train up professional instructors internally to take up teaching tasks for the development of employees in various aspects  Be the forerunner in the industry to offer industry-recognised approved programmes in property management  Develop a learning organisation through the most optimum use of existing training resources

The Structure of HYPDA:  The Board of Directors of HYPDA comprises the Vice-Chairman & CEO, the two directors and the Head of HR Department.  It is divided into seven training centers with each of them specializes in its own training area.

Aim: Did you know? To provide a comprehensive and holistic Hong Yip is the first company in the approach for the provision of training and industry of Property Management development programmes and activities that accredited by HKCAAVO to operate QF support the company needs and the personal Programmes from levels 1 to 3 development of its staff at all levels. 55 Occupational Health and Safety

Work hours lost due to accidents at work are mainly related to slip, trip or fall, and sprains when frontline employees are carrying out patrolling duties. To address this, we offer relevant safety training and find different ways to raise awareness amongst our employees.

 We organise an Occupational Safety and Health Annual Seminar with guest speakers from the Occupational Safety and Health Council and other government, statutory and professional bodies

 We organise various internal competitions on promoting Workplace Safety

 We offer a variety of training programmes related to health and safety management including:

• The health and safety responsibilities of property and facilities management

• Managing the health and safety of our contractors

• Guidelines on work safety including risk assessment, working at height, confined space, dangerous substances, safety of electricity use, welding procedure, fire prevention, manual handling, personal protective equipment, etc.

56 Safety Improvements

Installation of Fall Protection System At Mei Chung Court, The Seacrest, we introduced a horizontal lifeline system for workers to prevent fall from height while carrying out cleaning work on the roof of covered walkways, building façades and canopies. The system installed follows the EN795 standard and is entirely made of stainless steel, comprising of a horizontal lifeline, rope stretchers and full-body safety harness. The wire rope goes through intermediate supports and workers are able to hook and unhook at any location along the horizontal lifeline.

Further enhancement use of “Three Safety Buddies” when working at height Workers who are going to perform work at height is now enforced to made use of suitable working platforms, such as mobile working platforms, step platforms and hop-up platforms (commonly known as the "Three Safety Buddies") Furthermore, to ensure safety, workers must use full-body harnesses and secure them on independent lifelines where necessary Safe.

57 Ergonomics at the Head Office

We carry out ergonomics assessment, raise awareness and training programmes annually to help create a safe, comfortable and aesthetic work environment for our employees. The aim is to increase our employee productivity and performance and reduce the frequency and severity of work-related injuries. The areas we assess include materials handling, proper use of office equipment, workstation arrangements, office lighting, Indoor Air Quality (IAQ), work posture and work pressure.

58 Employee Well-Being and Fulfillment

Enriching the work life The Staff Recreation Committee was established to ensure better formulation and co- ordination of employee activities and events that geared to the needs of employees. During the report period, it organised a wide range of employee activities and events such as ball games, holiday trips, hiking, swimming classes, movies, concerts and seminars on health and family matters, with a view to enhancing interaction amongst employees from different departments and helping employees create a more balanced and enjoyable work-life. In particular, our ‘Relax at One O’clock’ event at Head Office covered many useful, fun and interesting topics on health and hobbies so as to nurture our employees’ well-being both within and outside their working hours.

Furthermore, free lunch and fruit were provided at Head Office so that employees could enjoy a healthy meal together in the office premises. Meal coupons for use at SHKP’s hotels were offered to employees with outstanding performance as an incentive.

59 Employee Well-Being and Fulfillment

Hong Yip formed a Recreation Committee to provides various healthy and well-being activites.

60 Employee volunteering

For many years, we have engaged our employees through volunteering programmes which are meaningful opportunities for capacity building both in our employees and the community, and also to develop employee morale and work- life balance. Our employees have shown great enthusiasm for a range of community services which are described in the ‘Responsibility to Society’ section of this Report.

61 Engaging our Employees

It is important to understand the views of our staff to ensure that appropriate measures are taken to win their engagement at work. Staff opinion survey(SOS) is one of the effective ways to achieve this objective. That explains why we conduct employee opinion surveys on a regular basis.

Starting from 2004, we conducted “Staff Opinion Survey” bi-annually, which is anonymous, to solicit the opinion of staff in Hong Yip Group on various aspects of work dimensions to gauge their level of job satisfaction in our Company.

To enable us to compare and benchmark our prevailing practice with other companies not only in Hong Kong but also in Asia, we changed our survey strategy by joining the HR Asia Award in 2017 Campaign in which staff opinion survey was included.

Over the years, the results show that staff is generally happy with working in the Company.

Apart from the survey, other functions and activities tailor-made for specific categories of employees were also undertaken on project basis from time to time. We have organized different kind of events including Meeting with “CEO”, AO Gathering, Senior Mentor Lunch Gathering, Chinese breakfast gathering for the night shift staff, etc. Through these events arranged for certain categories of colleagues, a better team spirit can be cultivated.

62 Key challenges ahead

• Extend and strengthen internal communication channels to promote transparency and understanding in order to deliver high quality customer services. • Continue to drive our Talent Development Programme and clearly identify career development paths to develop employees internally to support the growth of the Company’s business. • Organise more social and recreational activities, to address employees’ concerns and needs through different channels so as to retain a happy workforce. • Maintain the competitiveness of our employee remuneration and benefits plan so that our Company can remain the employer of choice in the industry.

63 Responsibility to our Customers

64 We have always been committed to providing incomparably high standard of quality services for customers and also to build a strong brand of professional services. There are quality monitoring measures in place:

• Audit of our services by SHKP • Internal audit of our services • Carry out monthly visits to homes and commercial premises to gather occupants’ opinions on our services • A 24-hour hotline to handle customer complaints effectively and on a timely basis • Mystery customer visits • Tea gatherings where frontline employees meet with Vice Chairman

65 Delivering Service Excellence to our Customers

To align with Hong Yip’s Quality Policy: ‘We will deliver premier services with ultimate courtesy and manage every property to the highest quality standards’; we have been running the Service Excellence Training Programme for our employees in the past few years with the following objectives:

• Enhancement of property image and value • Provision of value-for-money services and facilities • Improvement on customer service skills and quality • Positioning Hong Yip as the market leader

Focus Areas of Training The key training areas in the Programme are:

• VIP Hospitality Did you know? • Customer servicing Hong Yip won “Hong Kong Top • Complaint handling Service Brand Awards”, which is co- • Building management organised by the Hong Kong Brand • Value-added home convenience servicing Development Council and the • Emergency/crisis handling Chinese Manufactures’ Association • Security measures of Hong Kong. • Maintenance acquaintance • Cleanliness and hygiene knowledge • Building enhancement, etc

66 Challenges of the Programme

The key challenges of the Programme were changing the mindset of almost 4,000 frontline employees and keeping the momentum for continuous improvement. To overcome these challenges, we adopt the ‘train the trainer’ method to deliver training, offer reinforcement and refresher courses, field coaching and experience sharing sessions, and help employees to develop self-value and awareness through workshops. We also provide rewards and recognition to outstanding employees through the biennial ‘Service Excellence Election’ campaign. There are four stages to the campaign, commencing from election by customers, group discussion selection process, case analysis through real-life examples, and finally panel assessment by top management. In 2016-17, 12 employees were awarded the ‘Star of Service Excellence’.

Recognition of our Service Excellence Hong Kong Top Service Brand Awards Customer Service Excellence Award by Hong Kong Association for Customer Service Excellence The Q-Mark Certificate (2004-2017) awarded by the Hong Kong Q-Mark Council Federation of Hong Kong Industries (the first property management company to be awarded) Capital Enterprise Outstanding Award by Capital Magazine Excellent Services Brand Award – Property Management (Residential) (2007-2017) by Sing Tao Daily Hong Kong Service Award – Property Management Category (2007-2017) by Eastweek Magazine

67 Adding Value to Our Portfolio

Hong Yip’s Quality Assurance Programme Through our Quality Assurance Programme, we aim to:

• Increase the property value of the buildings under our management; • Upgrade the living standard and environment of building owners; and • Enhance the discerning characters and status of buildings through upgrading their hardware and software.

Implemented and completed in 2000 and 2005 respectively, the first stage of QAP focused on upgrading the interior of the buildings. Altogether 247 buildings were upgraded. The second stage of QAP began in 2006, which focused on upgrading both the interior and exterior of the buildings. Since the participated buildings increased to 311 from 256 buildings, the exercise of QAP Phase II will be extend to Year 2013. Up to 2017, we made remarkable achievements, 82.3% of our managed buildings satisfactorily upgraded in this phase. The QAP involves the following improvement works:

• Facelift of building façades; • Refurbishment and upgrading of common areas including entrance lobby, typical lobbies and corridors; • Maintenance and renovation of staircases; • Maintenance, renovation and management of car parking area; • Enhancement of recreational facilities and clubhouses; • Modernization of E&M systems; • Improvement of landscape/horticulture in the surrounding environment; and • Implementation of innovative and sustainable proposals. 68 Outreach to our Customers on Environmental Protection

Waste separation and recycling Our huge efforts in facilitating source separation and recycling, both at our managed residential estates and C&I buildings, have been met with enthusiasm and commitment from the occupants. Go to ‘Waste Management’ in the ‘Responsibility to the Environment’ section for more details.

Reuse Food Waste Since 2008, some sites implemented food waste recycling programme. The aim is to collect residents’ food waste such as vegetables, fruits, meat etc to de-composite via newly installed food waste eliminator to stabilize the organic waste and turn it into useful fertilizer for irrigation to its plants inside the estate.

69 Responsibility to Society

70 As a good corporate citizen, we provide continuous support for various community activities by offering volunteer service and sponsoring different community associations in their efforts to build a more harmonious society. We encourage our employees and customers to engage in multi-faceted voluntary services that reach out to the elderly, underprivileged, youths and disabled, and also support environmental protection.

The Hong Yip volunteer team was established and registered in the Social Welfare Department on 22 August 2001 to support the International Volunteer Year in 2001, proclaimed by the United Nations. In order to promote volunteer service systematically and effectively, we have also set up 50 volunteer sub-teams.)

In 2017, our volunteer team participated in over 37 volunteer service activities, with the contribution of 700 employees and near 50,000 service hours outside of work. In addition, the Company sponsored 24 community projects during the year.

Our volunteers participate in short term volunteer service activities such as: charity bazaar, fundraising and elderly home visits, and also longer term community programmes in partnership with a number of major social organisations including St. James' Settlement , The Hong Kong Society for the Blind, The Neighbourhood Advice- Action Council, Christian Family Service Centre, Haven of Hope Christian Service and the Social Welfare Department.

We share with you below some highlights of our support for community activities.

71 Did you know? In 2017, we were awarded the following certificates from the Social Welfare Department in recognition of our volunteer service:

Individual Volunteers 90 employees awarded Gold Certificate (200 service hours in a year) 35 employees awarded Silver Certificate (100 service hours in a year) 47 employees awarded Bronze Certificate (50 service hours in a year) 9 employees volunteering services for 15 years

Volunteering Sub-teams (according to the service hours accumulated by their members) 7 teams awarded Gold Certificate (1000 service hours in a year) 7 teams awarded Silver Certificate (600 service hours in a year) 9 teams awarded Bronze Certificate (300-599 service hours in a year)

Family Volunteering Teams 10 family teams awarded Gold Certificate 1 family teams awarded Silver Certificate 4 family teams awarded Bronze Certificate

72 Fundraising Activities Flag Days/Fundraising walkathons/marathons/ climbathon

Over 400 of our employees volunteered to sell flags or fundraising activities such as walkathon and marathon in 2017 organised by various community/charitable organisations. We have also been supporting the Climbathon at Central Plaza organised by Hong Chi Association for several years.

73 Peace box Campaign - Sharing your bliss with the needy!

The Peace Box Campaign has been launched in Hong Kong since 2014, aiming at connecting people among our society. In past Campaigns, we have collected the gift boxes through our management portfolio: residents, tenants as well as schools and churches through co-organisers, and then distributed these boxes to over 30,000 individuals including the underprivileged children and families, elderly home, street sleepers, etc. through NGOs and churches. By filling the boxes with gifts, every peace box is a powerful tool to share love and care. Through this Campaign, we hope to foster harmony of the society and give an opportunity to our residents and other people from to share their care to the needy ones.

74 Peace box Campaign

From 2014, Hong Yip and co-organisers collected over 30,000 peace boxes including necessity, stationary, households, food and etc. for 4 years to the underprivileged as a gesture of our care to them.

No. of peace boxes collected (Year) No. of persons/families benefited

8,440 (2014) > 8,000

7,592 (2015) > 7,000

8,110 (2016) > 8,000

10,710 (2017) > 10,000

Organisations benefited:

• Street Sleepers’ Shelter Society Trustees • S. K. H. St. Christopher's Home Incorporated • HKSKH Church of the Ascension • Against Child Abuse (Tuen Mun & Wong Tai • Hong Kong Yan Kwong Bethel Sin) • Kwai Chung New Life Temple • ELCHK Intergrated Youth Service Centre • Neighbourhood Crae Foundation Ltd. - The (Tseung Kwan O) Praise Assembly (Tsuen Wan) • Hong Kong Women Workers’ Association • Hong Kong Evangelical Yan Tin Church Society for Community Organisation • Hong Kong Baptist Church Good Neighbour • New Women Arrival Chapel • Yan Kwong Social Service Centre • etc. • Love & Care for the Sick Foundation Ltd.

75 Ethical Consumption「良心消費」

Hong Yip is one of the co-organisers in the Ethical Consumption「良心消費」. Every year, we support TECM (十一良心消費運動) through encouraging the notion of “10% Swap for Good” among our customers and staff, to make a socially conscious choice to patronize the products and services of social enterprises (SEs), so as to promote an active citizenship and betterment of the community.

76 SoLeisure「閒。舍。區」

We launched a very practical mobile application, named SoLeisure (「閒。舍。 區」) which can be easily downloaded through the use of a smart phone and is easily accessible to social enterprises(SE) and related product/services provided by SEs at anytime and anywhere. This application is currently attached to our Soprop which can easily connect to our customers.

77 Children Mentoring Programme

Collaborating with The Neighbourhood Advice-Action Council’s Integrated Services Centre, our volunteers served 100 children aged between 5 and 14 in a ‘Children Mentoring Programme’ which consists of a variety of life enriching activities and educational visits/events. The aim is for the volunteers to adopt the role of a mentor to the children and help them to look beyond their financial/physical conditions, build self-confidence to face difficulties positively, and develop personal goals for the future.

Caring for the Elderly Building a Harmonious Community Starts from Caring for the Elderly

The Social Welfare Department launched a volunteer programme for residents to join forces in caring for the elderly in their neighbourhood, which in turn helps to build a harmonious community spirit. Our role is to enlist residents for the programme and coordinate the volunteer teams to serve the community. . During 2017, residents from 19 of our managed estates volunteered in community services for the elderly and received the ‘Caring Estate’ logo. In addition, 5 of the estates were awarded the ‘Leading Caring Estate’ logo, demonstrating a remarkable contribution of volunteer service hours that meet the scheduled service level.

78 ‘Leading Caring Estate’ & ‘Caring Estate’ logos

Royal Peninsula Manhattan Hill The Seacrest Pristine Villa On Ning Garden Phase II Prima Villa Beneville Mei Chung Court Oscar By The Sea Tak Tin Estate Baycrest Botania Villa Parc Oasis Phase III Ming Nga Court Sham Wan Towers Forest Hill Parc Royale Fortune Garden Park Central (Residential)

The Parcville Cove Grand Del Sol

79 Caring for the Elderly Building Homes and Caring Neighbours with Heart – Redevelopment of Estates

The Initiative has worked with the Social Welfare Department and the parent company to help elderly, living-alone, Mental Health Rehabilitation Family in relocation assistance due to the Shek Kip Mei Redevelopment since 2003. Hong Yip volunteer Team assisted them inspection of the flat, flooring skirting and dado, LED installation and building up good relationship with neighborhoods.

Afterwards, the scheme extended to other redevelopment sites such as Lower Ngau Tau Kok Estate, Pak Tin Estate, So Uk Estate I-III, Tung Tau Estate and On Tat Estate which can help around 1,000 households so far.

In 2017, Through the joint hands with Tung Tau Social Service Team of The Neighbourhood Advice Action Council, we assist about 120 elderly households of Tung Tau Estate in the selection and inspection of their new homes, as well as performing general renovation works to help them settle in quickly and easily.

80 Improving Livelihoods Support Unemployed through Employees Retraining Scheme

As early in 1996, Hong Yip has actively partnered with non-profit organizations in helping the unemployed to enhance their employability through providing them with practical work experience in different job categories of our Company.

In fact, Hong Yip has been awarded the most greatest numbers of ERB Employers Platinum Awards, Gold Star Awards and ERB Excellence Award for Employers by the Employees Retraining Board (ERB) in aggregate amongst all the companies in Hong Kong nominated for these Awards, in recognition of their unreserved support rendered to the retraining programmes.

With the repositioning of ERB to bring its function to full play in late 2007, ERB has revamped the Employees Platinum/Gold Star Award as “ERB Manpower Development Scheme Award ”in 2008. Since then, Hong Yip awarded the highest honour of “ERB Excellence Award for Employers in the ERB Manpower Development Scheme” for 9 times to commend our active participation in its Manpower Development Scheme by employing ERB trainees, promoting ERB services to the public, caring for their staff and providing career development opportunities for trainees.

81 Support our Youth

Hong Yip has entered into MOUs with various tertiary institutions (VTC Hong Kong College of Technology and Caritas Bianchi College of Careers) to provide industry attachment for over 100 interns each year to enable their students to acquire practical on-the-job experience. Scholarships are given to those whose performances during the internship period are outstanding.

82 Did you know? For fifteen consecutive years (2002-2017年), we have been awarded with the Caring Company Logo organised by the Hong Kong Council of Social Services in recognition of outstanding performance in corporate social responsibility and efforts to create a caring community.

Our nominators include 8 social service organisations: • The Hong Kong Federation of Youth Groups • St. James’ Settlement • Christian Action • Hong Kong Young Women’s Christian Association • Association Retraining Centre • Social Services of the Hong Kong College of Technology • CTU Education Foundation Ltd. • Hong Kong Employment Development Service Limited

Also, we have received the “Capital CSR Award” awarded by Capital Magazine in 2017.

83 Did you know? Moreover, our 9 business partners (subsidiaries) and 8 properties have earned the distinction for Caring Company labels or entitles of 5 years or more to demonstrate its commitment of CSR in the spirit of Serving Homes with Heart by The Hong Kong Council of Social Service.

Entitlement Company/Building 15 Years Plus Logo Hong Yip Service Co Ltd

10 Years Plus Logo Nixon Cleaning Co. Ltd. Nicole Environmental Services Co. Ltd Royal Peninsula 5 Years Plus Logo Lik Kai Engineering Co. Ltd.

Caring Company Logo Superpower Pumping Engineering Co. Ltd. Lik On Security Ltd. Home Convenience Service Co. Ltd. Home Laundry Service Co., Ltd. Vigor Industrial Building Harbour Place Epoch Industrial Building Kwai Shun Ind Centre Kwai Sing Centre Wah Sing Industrial Building Po Sing Centre Maison Platinum Service Company Limited

84 Your Feedback

Thank you for reading our CSR Report. We welcome your feedback on any aspects of this report and any suggestions for improving our future CSR performance and reporting. Please write to us either by email or post at the following address:

Email: [email protected]

Address: Hong Yip Service Company Limited 16/F, World Tech Centre, 95 How Ming Street, Kwun Tong, Hong Kong

Website: http://www.hongyip.com

Tel: (852) 2828 0888 Fax: (852) 2827 6300

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