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 Hong Kong. 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 Sun Hung Kai Properties 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: