Royal International : Environmental, Social and Governance Report 2023

控股國際有限公司

ROYAL GROUP HOLDINGS

International Company Limited

ENVIRONMENTAL, SOCIAL AND

GOVERNANCE REPORT

2023

ROYAL GROUP HOLDINGS INTERNATIONAL COMPANY LIMITED

ENVIRONMENTAL, SOCIAL & GOVERNANCE REPORT

PREPARATION BASIS

As a company based and serving in Hong Kong, Royal Catering Group Holdings Company Limited (the "Company", together with its subsidiaries, the "Group" or We) is a large food and beverage group in Hong Kong operating casual dining restaurants under a portfolio of brands.

The Group aims to serve its customers with top quality food at good value, in a cosy and inviting dining atmosphere. The Group also targets to provide (i) safe, healthy and pleasant working environments to its employees, (ii) reasonable returns on investments to investors, business partners and supporters, and (iii) sustainable development to the society and environment.

To ensure these long-term goals, the Group's senior management (including the Company's directors (the "Directors")) are committed to environment protection, being socially responsible, and are equipped with the strictest corporate governance. In pursuant to the requirements defined in the Environmental, Social and Governance Reporting Guide ("ESG Guide") in Appendix 20 to the GEM Listing Rules published by The Stock Exchange of Hong Kong Limited, the Group has prepared this 2022-2023 Environmental, Social and Governance (thereafter "ESG") report, disclosing its efforts in managing its ESG impacts from its principal operation activities, including: casual dining food catering services in Hong Kong. This ESG report covers two subject areas, namely environmental and social. Corporate Governance Report is presented in pages 22 to pages 39 of our Annual Report 2022/2023.

This report was prepared in alignment with the key reporting principles recommended in the ESG reporting guidelines published by HKEx, including:

SCOPE OF REPORT

The scope of this ESG report covers the Group's initiatives on introducing the concept of ESG to its internal and external stakeholders, implementation of sustainable practices throughout the Group's daily operations and disclosing results as a year-end summary. It is also the intention of the management to provide an overview of the Group's direction in managing ESG related issues, driving for ESG initiatives throughout the Group, and communicating its ESG performance with stakeholders.

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ROYAL GROUP HOLDINGS INTERNATIONAL COMPANY LIMITED

ENVIRONMENTAL, SOCIAL & GOVERNANCE REPORT

The reporting of key performance indicators (KPIs) provides a good representation of our ESG performance, which also helps the Group's performance tracking. The reporting approach, including quantification of KPIs, has remained the same compared to the Group's previous report to ensure consistency.

ESG REPORTING BOUNDARY AND PERIOD

The reporting boundary of this ESG report shall cover the operating activities of the Group from 1 April 2022 to 31 March 2023 ("Reporting Period"). During the Reporting Period, the Group has been operating the following restaurants in Hong Kong:

Table 1. Restaurants operated by the Group

Notes:

1. "Du Hsiao Yueh Restaurant (度小月)" in Times Square, Causeway Bay was closed on 28 August 2022. Branch at Jaffe Road, Causeway Bay opened on 3 October 2022.

STAKEHOLDER ENGAGEMENT & MATERIALITY IDENTIFICATION

The Group sets out below its efforts to minimise the negative impacts to the environment from its operations, promote employees' well-being and to contribute to the local community.

To ensure the full spectrum of the ESG aspects of the operation is covered in its sustainability strategy and to identify its related attributes for active management purpose, the Group has consulted both the internal and external stakeholders about its potential impacts. The Group understands and values the importance of maintaining a good relationship and mutual communication with stakeholders from all perspectives, and thus included a wide range of parties as consultation targets.

In addition, the Group engaged and commissioned a professional firm to assist the drafting of the ESG Report, and conducted a materiality analysis in the form of a management interview during the drafting process. Particular sustainability-related issues which are material to the Group were identified during the process, and results of which are disclosed in later part of this ESG Report.

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ROYAL GROUP HOLDINGS INTERNATIONAL COMPANY LIMITED

ENVIRONMENTAL, SOCIAL & GOVERNANCE REPORT

The below table presents key stakeholders of the Group as well as how the Group communicate with them through a variety of engagement channels during the Reporting Period.

Table 2. Engaged stakeholder list and methods

Materiality Assessment

The Group performed a materiality assessment of various ESG topics to identify and evaluate the concerns and interests of the Group's internal and external stakeholders. The findings of the assessment are presented in a materiality matrix, as shown below:

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