Edvantage Group Holdings Limited

中滙集團控股有限公司

(Incorporated in the Cayman Islands with limited liability)

Stock code : 0382

2019

Environmental, Social and

Governance Report

Environmental, Social and Governance Report 2019

About the Report

Overview of the Report

Edvantage Group Holdings Limited, an exempted company incorporated in the Cayman Islands with limited liability, whose shares are listed on The Stock Exchange of Hong Kong Limited with Stock Code 0382 (hereinafter referred to as the "Company", "we" or "us" , together with its subsidiaries, the "Edvantage Group" or the "Group") hereby presents its first environmental, social and governance report (hereinafter referred to as the "Report"). The Report summarizes the strategy, practice and vision of Edvantage Group in respect of issues related to environment, society and governance in 2019, with a view to show that the Group adheres to the principle of sustainable development and is devoted to fulfilling its social responsibility as a corporate.

Reporting Scope and Reporting Period

Unless otherwise specified, the scope of the Report covers the two educational institutions of the Group in Zengcheng, Guangdong Province, namely, Huashang College Guangdong University of Finance & Economics (hereinafter referred to as "Huashang College") and Guangzhou Huashang Vocational College (hereinafter referred to as "Huashang Vocational College", collectively referred to as the "Colleges").

The Report covers a time period from 1 September 2018 to 31 August 2019 (hereinafter referred to the "Reporting Period"), same as that covered by the 2019 Annual Report of the Group.

Preparation Basis of the Report

The Report is prepared in accordance with the Environmental, Social and Governance Reporting Guide as set out in Appendix 27 to the Rules Governing the Listing of Securities (hereinafter referred to as the "Listing Rules") on The Stock Exchange of Hong Kong Limited (hereinafter referred to the "Stock Exchange") and complies with all provisions of "Comply or Explain" as well as the principles of materiality, quantitative, balance and consistency.

Contact Us

We attach great importance to readers' valuable opinions. Should you have any questions or suggestions about the Report, please contact the Group via:

E-mail:cs@edvantagegroup.com.hk

The Company's address: Room 1115, 11/F, Wing On Plaza, 62 Mody Road, Tsim Sha Tsui, Kowloon, Hong Kong

Source of Data and Reliability Statement

The information disclosed in the Report is from the Group's internal documents, statistical reports and relevant public materials. The Group undertakes that the Report does not contain any false information, misleading statement or material omission, and takes responsibilities for the contents hereof as to the authenticity, accuracy and completeness.

Environmental, Social and Governance Report 2019 1

Environmental, Social and Governance Report 2019

Confirmation and Approval

The Report was approved by the Board of Directors of the Company (hereinafter referred to as the "Board") on 13 March 2020 upon confirmation by the management of the Company. The Report is prepared in both Chinese and English. In case of any discrepancy between the Chinese and English versions of the Report, the Chinese version shall prevail. The electronic version of the Report is available on the website of the Stock Exchange (www.hkexnews.hk).

Identification of and Communication with Stakeholders

During its running of schools, the Group keeps refining its communication mechanism and maintains active communication and exchange with internal and external stakeholders such as governments/ regulators, shareholders, investors, suppliers, partners, faculty, students, parents and the public communities, in an effort to fully understand their expectations and suggestions. Based on such understanding, the Group continues to improve its sustainable development strategy and planning, striving to consolidate mutual trust and cooperation and realize the sustainable development plan, so as to create a future with sustainable economic growth, environmental friendliness and social development.

Major Concerns of Stakeholders and Measures

Stakeholder

Concern

Means of Communication

Shareholders/

Business strategy;

General meetings;

Investors

Return on investment;

The Group's announcements;

Corporate image; and

Regular briefings and meetings;

Operating compliance.

Roadshows; and

The Company's website.

Governments and

Operating compliance;

Visits;

regulators

Tax payment as legally required; and

The Company's website; and

Disclosure of information and submission

Information disclosure of listed

of materials.

companies.

Associations of the

Operating compliance.

Visits;

industry

Meetings;

Lectures; and

Activities for exchanges.

Employees

Remuneration and benefits;

Employee representatives' assembly;

Working environment;

Suggestion boxes on schools' websites;

Employees' occupational safety and

Group activities; and

health; and

Online platform with comprehensive

Trainings and career development.

services in schools (Huashang e-Home).

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Environmental, Social and Governance Report 2019

Stakeholder

Concern

Means of Communication

Students and

Teaching quality;

Online evaluation of teaching;

parents

Teaching philosophy;

Seminars for teachers and students;

Teaching management;

Parents' meetings;

Teaching service quality;

Schools' websites; and

Campus environment; and

Online platform with comprehensive

The health and safety of students.

services in schools (Huashang e-Home).

Communities

Community development;

Community service activities;

Social welfare;

Volunteer activities;

Employment opportunities; and

Community communication meetings; and

Ecological environment.

Press releases/announcements.

Environmental, Social and Governance Report 2019 3

Environmental, Social and Governance Report 2019

Environmental

Emissions

The Group pays heed to not only basic educational services, but also environmental protection and follows the principle of sustainable development in its daily management in an attempt to improve the environmental awareness of all its teachers and students and strives to build a green campus. We strictly abide by environmental laws and regulations, including but not limited to the Environmental Protection Law, Law on the Prevention and Control of Atmospheric Pollution, Law on the Prevention and Control of Water Pollution, Law on the Prevention and Control of Solid Waste Pollution to the Environment and Law on Energy Conservation of the People's Republic of China (hereinafter referred to as "China" or the "PRC").

Exhaust

As the Group is engaged in educational services, no business activities are involved in its daily operation. Furthermore, canteens in the colleges have also been outsourced to catering management companies. The Group's air emissions derive mainly from automobiles. The types and data of emissions are as follows:

Major Emissions

Unit

Amount of Emission

NOx

Kilogram

517.80

SOx

Kilogram

1.38

Particles

Kilogram

43.64

Greenhouse Gases

The Group's direct emissions of greenhouse gases result principally from the burning of fuel in the Group's vehicles, while the indirect emissions of greenhouse gases are mainly from the purchased electricity, discarded waste paper and the flights its employees take for business trips.

Major Types of Emissions

Unit

Amount of Emission

Scope I

Burning of fuel in vehicles:

CO2

Metric tons of CO2 equivalent

221.63

Methane

Metric tons of CO2

equivalent

0.45

N2O

Metric tons of CO2

equivalent

27.60

Total amount of emission from the

Metric tons of CO2

equivalent

249.68

burning of fuel in vehicles

Trees planted

Metric tons of CO

2

equivalent

(42.78)1

1 By reference to Appendix 27 of the Listing Rules, the data only include plants that can reach at least 5 meters high.

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Environmental, Social and Governance Report 2019

Major Types of Emissions

Unit

Amount of Emission

Scope II

Electricity

Metric tons of CO

2

equivalent

22,298.052

Scope III

Waste paper

Metric tons of CO2 equivalent

14.76

Employees' business trips

Metric tons of CO2 equivalent

96.64

Total emissions

Total emissions

Metric tons of CO2 equivalent

22,616.35

Intensity of total emissions

Metric tons of CO2

equivalent

9.60

per employee3

Measures to Mitigate Emissions

In order to effectively reduce the air emissions generated by the Group, the Group's measures for fleet management have included the following:

Reasonable driving. Private use of business vehicles is prohibited and long-distance dispatching is subject to strict review to reduce unnecessary travel;

Weekly inspection and maintenance of vehicles are conducted to enhance burning efficiency of fuel; and

Commuter services are provided to faculty and staff to reduce fuel consumption.

During the Reporting Period, more than 1,800 trees were planted in the Colleges. By planting trees, 42.78 metric tons of carbon dioxide emissions were reduced. We will continue to carry out afforestation to reduce emissions generated in the course of operation.

  1. The greenhouse gas emission factors of purchased electricity adopt the Average Carbon Dioxide Emission Factors of China's Regional Power Grid in 2011 and 2012 issued by the National Development and Reform Commission.
  2. As at 31 August 2019, the total number of the Group's employees was 2,355.

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Environmental, Social and Governance Report 2019

Hazardous and Non-Hazardous Wastes

The Group's solid emissions mainly come from all sorts of recyclable and non-recyclable household garbage generated in the Colleges, such as paper, office supplies, stationery, plastic, etc. The hazardous wastes are primarily insecticides and medical wastes. There are recyclers who collect medical wastes for detoxification on a monthly basis.

Detailed data of the Group's emissions during the Reporting Period are as follows:

Type of Energy

Unit

Amount Generated

Hazardous wastes

Metric ton

1.55

Intensity of hazardous wastes

Metric ton per employee3

0.00066

Non-hazardous wastes

Metric ton

8.86

Intensity of non-hazardous wastes

Metric ton per employee3

0.0038

Measures to Reduce Wastes Generated

The Group actively advocates the idea of green campus and adheres to the principle of "four 'Re' actions in environmental protection" (reduce, reuse, recycle and replace) in daily operation, aiming to minimize the generation of wastes and make full use of resources.

In terms of using paper, we require the staff to use double-sided photocopying and reuse single- sided paper for photocopying or printing of the first draft. In case of waste of paper, each department shall deduct RMB1 from its funds for each copy from its outlay. In terms of wastes, each College under the Group has set up garbage cans for classification to sort out the recyclable part of the solid wastes and hand them over to cleaning service companies for treatment.

Use of Resources

The Group's indirect energy consumption mainly comes from the purchased electricity.

3 As at 31 August 2019, the total number of the Group's employees was 2,355.

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Environmental, Social and Governance Report 2019

Total Energy Consumption

Type of energy

Unit

Consumption

Electricity

Total electricity consumption

kWh

25,694,918

Intensity of total electricity

kWh/total employee3

10,910.79

consumption

Water source

Total water consumption

Cubic meter

1,829,244

Intensity of total water consumption

Cubic meter/total employee3

776.75

Energy Use Efficiency

In terms of electricity saving, the Colleges use low-power, recyclable and reusable energy-saving lamps to reduce the power consumption of lighting products, and in turn reduce carbon emissions. During the Reporting Period, the heat pump system in students' dormitories on campus was modified by the Group, thus reducing power consumption while enhancing the energy-saving efficiency. The Group has also formulated the Management System to Secure Electricity Usage on Campus to ensure electricity safety and encourage energy conservation. Specific measures include: Faculty members are required to turn off the equipment and power supply when they leave relevant places and when they are not using the equipment; connecting power supply without permission and using high-power electrical appliances on campus are forbidden.

In terms of water conservation, Huashang College under the Group has carried out a drainage renovation project for the air conditioning in its teaching buildings to eliminate the leakage of drainage pipes and reduce energy consumption. There are also signs in the toilets to remind students and staff to save water.

Appropriate Water Source

The Group faces no issues in sourcing water that is fit for purpose, and both its Colleges have stable water supply to meet daily operational needs.

The Environment and Natural Resources

Both of the Colleges will not have a particularly material impact on the environment and natural resources in their daily operation. The Group constantly follows the principle of protecting the environment and natural resources in the operation and ensures that it will not cause any significant impact on the environment and overuse natural resources.

3 As at 31 August 2019, the total number of the Group's employees was 2,355.

Environmental, Social and Governance Report 2019 7

Environmental, Social and Governance Report 2019

Social

Employment

"People-oriented" is the core value of Edvantage Group. We firmly believe that employees are the most valuable asset of an enterprise. The Group strictly abides by all applicable laws and regulations related to employment, including but not limited to China's Labor Contract Law, Labor Law, Regulations on Paid Annual Leave of Employees, Law on the Protection of Women's Rights and Interests, Law on the Protection of Disabled Persons and Social Insurance Law, etc.

The Group has specially formulated the Human Resources Workflow to manage its recruitment, induction training, employee hiring, employee resignation, employee promotion and other processes, so as to standardize the workflow and improve working efficiency. The Group is committed to building a diversified, anti-discrimination and inclusive working environment to ensure no employees will be discriminated against or deprived of opportunities due to gender, ethnic background, religious belief, color, sexual orientation, age, marital status or family status in respect of recruitment and promotion. In accordance with teaching plans and needs, we will select suitable and excellent candidates through the resume-screening process, and notify the candidates to have an interview after the selection by the head of the employing department. Only after written examination, preliminary examination by the department of human resources, interview by the employing department, interview by the head of the department of human resources, background investigation and approval by management is the recruitment of an employee finalized.

Employees who intend to resign shall inform the head of the relevant department and the management in charge in writing 30 days in advance (3 days in advance during the probation period). The department of human resources of the Group will arrange an interview to find out the reasons for the employee's resignation, and issue a resignation certificate for the employee after the handover between the employee and relevant departments is done and all resignation procedures are completed. The Group will carry out probation assessment and annual assessment for employees which will serve as important bases for rewards and punishments, salary adjustment and promotion, year-end bonus, etc. We rate our employees and adjust the corresponding salary and performance bonus according to the annual assessment to reward them for their contribution and stimulate their enthusiasm for work. For employees qualified for promotion, the head of the relevant department will inform the employee and submit a written promotion opinion to the department of human resources and the management in charge for approval.

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Environmental, Social and Governance Report 2019

The Group is devoted to providing a safe and healthy working environment for its employees so as to establish with them a close relationship with mutual trust. The Group provides a reasonable and satisfactory remuneration and benefits system for every employee, including basic salary and statutory five insurances plus one provident fund. We also provide high welfare policies to establish a working environment full of mutual assistance and friendliness between employees. Faculty and staff are entitled to basic statutory festivals and holidays. Basic salaries are paid to them during their sick leave, marriage leave, maternity leave and paternity leave in accordance with the applicable labor laws and regulations. The working hour is generally 8 hours per day and 40 hours per week on average with at least 1 day off per week based on the standard working hour system, or otherwise determined according to relevant laws and the specific positions of employees. Regular faculty and staff of the Group can also enjoy additional benefits and allowances, including but not limited to:

Monthly supplies;

Gifts and allowances at major festivals;

Birthday gifts;

Marriage allowances;

Birth allowances;

Hospitalization allowances/gifts;

Special hardship allowances; and

Annual physical examination, etc.

In order to enhance team cohesion and create a harmonious working atmosphere, the Group will also organize various group activities on a regular basis, such as one-day outdoor group birthday celebration for every quarter and one-day tour on Women's Day, etc.

Environmental, Social and Governance Report 2019 9

Environmental, Social and Governance Report 2019

Total Number and Classification of Employees

As at 31 August 2019, the Group had a total of 2,355 faculty members and staff. The detailed data are as follows:

Number of Employees

Total number of employees

2,355

Number of distribution of male and female employees

Female

1,229

Male

1,126

Number of age distribution

<25

53

25-29

270

30-39

980

40-49

489

>50

563

Number of employees at different levels

Management

67

Mid-level employee

66

Junior employee

2,222

Number of employees by region

Hong Kong

7

Mainland, China

2,323

Others

25

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Environmental, Social and Governance Report 2019

Number of distribution of

Number of

male and female employees

age distribution

2%

24%

11%

48%

52%

42%

21%

Male

Female

<25

25-29

30-39

40-49

>50

Number of employees

Number of employees

at different levels

by region

3%

1%

3%

0%

94%

99%

Juniort

Mid-level

Management

Mainland, China

Hong Kong

Others

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Environmental, Social and Governance Report 2019

Employee Turnover

As at 31 August 2019, the detailed data of employee turnover rate are as follows:

Total Loss of Employees

Number

% of total employees

Total number of loss

217

9%

Number of distribution of male and female employees

Number

% of total loss

Female

115

53%

Male

102

47%

Number of age distribution

Number

% of total loss

<25

16

7%

25-29

53

24%

30-39

75

35%

40-49

30

14%

>50

43

20%

Loss of employees by region

Number

% of total loss

Hong Kong

0

0%

Mainland, China

211

97%

Others

6

3%

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Environmental, Social and Governance Report 2019

Number of distribution of

Number of

male and female employees

age distribution

7%

20%

47%

24%

53%

14%

35%

Male

Female

<25

25-29

30-39

40-49

>50

Loss of employees by region

3%

0%

97%

Hong Kong Mainland, China Others

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Environmental, Social and Governance Report 2019

Health and Safety

The Group makes much account of the health and safety of the faculty, staff and students on campus, and endeavors to create a healthy and safe campus environment for the faculty, staff and students. A set of strict safety management regulations and guidelines in terms of fire safety, sanitary management, facilities and equipment management and smoking prohibition is in place. The Group has strictly complied with applicable laws and regulations on health and safety, including but not limited to China's Law on the Prevention and Control of Infectious Diseases, Food Safety Law, Regulations on the Sanitary Management of Student Canteens and Group Meals, Fire Protection Law and other relevant laws and regulations.

The Group's health and safety supervision projects mainly include: management of food safety in canteens, management of drinking water and electricity safety on campus, public security management on campus, medical hygiene management, dormitory management and fire supervision and inspection. According to the arrangements of health and safety work, each unit is required to conduct supervision work and keep relevant records regularly to ensure the safety work is well implemented.

In order to ensure hygiene and food quality in canteens on the campuses, the Group, pursuant to the requirements of the Food Safety Law, has set up a school-enterprise cooperation center and a diet committee to regularly supervise the food safety in the Colleges' canteens every week. The Group has also implemented corresponding safety measures, including but not limited to: canteens must be licensed with a food business license and staff must possess a health certificate. The purchased food ingredients shall be with an inspection and quarantine certificate; samples of food shall be kept for inspection; and food shall be preserved in a sanitary environment.

To ensure safe drinking water supply on campus, the Group has specially formulated the Management System for the Safety of Drinking Water on Campus to supervise drinking water hygiene. The Group regularly takes samples to inspect the water quality and keeps relevant records of water quality inspection.

The fire safety work is also included in the daily safety management. The Fire Safety Management System has been formulated pursuant to the requirements of the Fire Protection Law. A safety education conference is held at the beginning of each semester, and regular fire drills are conducted, aiming to strengthen the fire safety awareness of all staff and students, and enhance their ability to respond to fire emergencies.

The Group also pays close attention to the physical and mental health of students, faculty and staff. The schools are equipped with clinics and psychological counseling centers to provide medical treatment and psychological counseling services for students, faculty and staff. According to the Group's Regulations on Health Examination for Employees, health examinations are provided for employees once a year to inform employees about their health status in a timely manner.

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Environmental, Social and Governance Report 2019

During the Reporting Period, the Group did not suffer any work-related fatalities nor any losses in working days from work-related injuries.

Development and Training

The teaching ability of teachers and the administrative ability of administrators directly affect the teaching quality and administrative level of a school. Therefore, the Group attaches great importance to the development and training of its staff, and has formulated a detailed training plan to improve the knowledge and professional ability of teachers and administrators. Such trainings are mainly divided into cultural and technical trainings internally organized and professional knowledge trainings provided by external institutions. During the Reporting Period, 29% of the Group's faculty and staff received trainings, among which each mid-level and senior management completed 25 hours of training on average and other junior employees completed 64 hours of training on average.

Employee Training

Number

% of total employees

Total trained employees

675

29%

Gender

% of total trained

Number

employees

Female

407

60%

Male

268

40%

Type of employee

% of total trained

Number

employees

Junior employees

581

86%

Mid-level and senior employees

94

14%

Training hour

Total hours (hour)

39,320.5

Average training hours completed (by gender)

Female (hour)

62

Male (hour)

52

Average training hours completed (by type of employees)

Junior employees (hour)

64

Mid-level and senior employees (hour)

25

Environmental, Social and Governance Report 2019 15

Environmental, Social and Governance Report 2019

Gender

Type of employee

60%

14%

40%

86%

Male

Female

Junior

Mid-level and senior

Average training hours

Average training hours

completed

completed (by gender)

(by type of employee)

25 hours

52 hours

62 hours

64 hours

Male

Female

Junior

Mid-level and senior

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Environmental, Social and Governance Report 2019

During the Reporting Period, the major training activities in the Colleges organized by the Group included but were not limited to:

  • Induction training for new employees;
  • Pre-jobtraining for teachers;
  • Pre-jobtraining at provincial level for new student mentors;
  • National Teacher Training Conference of the Association of Chartered Certified Accountants ("ACCA");
  • Further education for teachers (public subjects, elective subjects, professional subjects);
  • Further education in accounting;
  • Summer training of Kingdee Software (China) Co., Ltd.;
  • Employment training regarding big data and artificial intelligence for personnel from colleges and universities across the country;
  • Training course for improvement of management philosophy in higher education and of administrative personnel's ability in new era;
  • Training course for improvement of Sino-UK cooperative teaching ability;
  • Teacher training at the summer media leadership workshop; and
  • 2018 management training of mid-level cadres at Global Business College of Australia, etc.

We also encourage faculty and staff to obtain various professional qualifications. During the Reporting Period, a total of 1,457 faculty and staff members possessed professional qualifications such as lecturer, professor, accountant, economist, securities practitioner, psychological consultant, enterprise human resource manager, engineer, etc.

Environmental, Social and Governance Report 2019 17

Environmental, Social and Governance Report 2019

Labor Standards

The Group firmly resists and opposes any form of child and forced labor, recruits and employs faculty and staff and protects their legitimate rights and interests in strict compliance with China's Labor Law, Law on the Protection of Minors, Provisions on the Prohibition of Using Child Labor, Teachers Law and other applicable laws and regulations.

The Group's human resources department will strictly supervise the recruitment, conduct background investigation on the applicants and check if his/her ID is authentic. He/She will not be recruited if any violation is spotted. The use of any false ID will be regarded as a fraud, and any labor contract that has been signed will also be deemed invalid.

During the Reporting Period, the Group did not have any events of forced labor and related complaints.

Supply Chain Management

In order to standardize the material supply procedures and strengthen the monitoring and management of cooperative suppliers, the Group has specially formulated the Procurement Management System to manage the Group's suppliers in terms of customer classification, screening, information-based management and assessment.

With a hope to create a safe, sanitary and comfortable teaching and living environment for teachers and students, the environmental and social risk factors of suppliers will be fully considered in addition to quality, reputation, price and other factors when selecting suppliers. For example, when purchasing daily necessities, drinking water equipment and teaching equipment, we check the qualification certificates provided by the supplier, including certificates regarding its environment and occupational safety and health such as whether its product is made of green and environmentally friendly materials. In the procurement for construction projects, suppliers will be required to provide business qualifications and a list of raw materials. After the supplier information is collected, new suppliers will be assessed by the procurement department, relevant department and financial personnel, and only after passage of the assessment will they become the Group's qualified suppliers. Information of such qualified suppliers will be entered into the enterprise resource planning (ERP) system.

Currently, the Group has a total of 20 qualified suppliers of books and teaching materials, renovation and decoration as well as printing from mainland, China, who are subject to annual assessment and rating every December. Cooperation with suppliers who fail the assessment will be terminated.

Teaching Quality

To strictly comply with Non-stateEducation Promotion Law and standardize teaching activities, maintain a good teaching order, practically establish a rigorous working style and improve teaching quality, the Group has formulated the Regulations on the Supervision over Teaching, Working Procedures for Supervision over Teaching and Mechanism of Random Check on Classes. The teaching supervision team of the Colleges will monitor and supervise the daily teaching quality of the whole college and teaching units, and inspect, supervise and evaluate the teaching level, order and quality of teachers. Supervision activities include but are not limited to: mid-term teaching inspection, annual assessment, random check on teachers in class and listening to lectures, seminars for teachers and students, etc. Any accident or fault will be taken as a teaching accident and reported and announced by the office of academic affairs to the whole College.

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Environmental, Social and Governance Report 2019

The Group has also formulated the Implementing Regulations for Evaluation of Teaching by Students which serves as a platform for students to give feedback on the teaching situation of teachers. Each semester, students are required to evaluate teaching quality online within a specified time period. The office of academic affairs will then analyze the online evaluation by students and calculate the comprehensive scores of the evaluated teachers. This measure can help and spur teachers to refine their teaching and improve teaching quality, and at the same time, provide important reference for the evaluation of teaching and management quality.

Thanks to excellent teachers, simple school spirit and effective management of talent quality, the Colleges under the Group were granted the award of Contemporary Excellent Private School in Guangdong and Outstanding Contribution Award of Contemporary Private School in Guangdong jointly issued by 5 units including Guangdong Society of Education and Guangdong Institute of China Contemporary Private Education in 2019.

Student Enrollment

The Group adopts reasonable and effective learning environment and teaching policies to attract students and parents and enrolls students primarily through WeChat, publications of the education department, educational exhibitions and other platforms and social media with high credibility. During the Reporting Period, the student enrollment held by the Group was in line with China's Advertising Law and other applicable and relevant laws and regulations.

Intellectual Property Rights

The Group is aware of the importance to protect intellectual property rights. In order to promote the cultural awareness of respecting intellectual property rights and abiding by laws in good faith, all software used by the Colleges is legally licensed, and the teaching materials used are ordered from reliable publishers. The Group highly values academic integrity and strictly observes the Copyright Law of the People's Republic of China. We have zero tolerance towards plagiarism and pursue due moral values in the education industry.

Privacy Policies

In order to ensure the information security of the Group, the Group has strictly abided by the Network Safety Law and formulated the File Management Measures to regulate the organizing, safekeeping, confidentiality and utilization of files, in an aim to reduce the risk of data leakage. The measures adopted to secure confidentiality include but are not limited to: the confidentiality levels of files are defined; the files are revised and declassified in accordance with relevant regulations; the confidential files are properly kept in special cabinets to which irrelevant staff have no access without authorization; the confidential files shall not be lent without the approval of the general manager, etc. The administrative office of the Group is responsible for supervising the management of files. Employees who are found to have violated the confidentiality provisions will be punished to the extent of how severe the situation is. During the Reporting Period, there were no any events in violation of data privacy occurred.

Environmental, Social and Governance Report 2019 19

Environmental, Social and Governance Report 2019

Service-Related Complaints and Solutions

The Group is open to comments from all parties, especially parents and students, and gets to know their needs through different communication channels. The office of academic affairs will, upon receipt of complaints about education services, immediately follow up the cases, overcome its own shortcomings in a timely manner and strengthen supervision and inspection. During the Reporting Period, the Group received 2 cases of complaint. After learning about the incidents, the office of academic affairs criticized the staff involved, had the cases announced, and deducted relevant staff's accumulated points for the year as a warning, aiming to convey a message to all teachers and students that faculty and staff should strictly discipline themselves and jointly maintain a good teaching environment.

Anti-Corruption

The Group strictly obeys China's Anti-Money Laundering Law, Anti-Unfair Competition Law, Criminal Law and other relevant laws and regulations, and adheres to the basic code of conduct of integrity and self-discipline.The Group has formulated the Procurement Management System to regulate the business conduct and professional ethics of employees, and prohibits any bribery, fraud and other illegal acts such as blackmail and money laundering. If employees find any violations, they can report to the person in charge of the administration department, which is responsible for investigating and collecting evidence and submitting it to the human resources department. The human resources department will determine the corresponding punishment pursuant to the detailed rules. If the national laws are violated by any employee or staff of the Group, the case will be reported and transferred to the judicial authority for further investigation and handling in accordance with the applicable law.

This year, the Group attended the signing ceremony and meeting for the joint construction of incorruptible tax authorities and enterprises jointly held by the state and local taxation bureaus in Zengcheng. At the meeting, the parties jointly interpreted the Working Plan for the Joint Construction of Incorruptible Tax Authorities and Enterprises and signed the Agreement for the Joint Construction of Incorruptible Tax Authorities and Enterprises. The Group accepted the plaque of "Demonstration of the Joint Construction of Incorruptible Tax Authorities and Enterprises" granted by the state and local taxation bureaus in honor of the Group's efforts in tax payment and incorruptible construction according to laws.

During the Reporting Period, the Group did not notice any corruption, bribery, extortion, fraud, money laundering or other violations.

Community Investment

As an educational enterprise, the Group is actively engaged in community construction and public welfare undertakings. Every year, the Group participates in various activities such as voluntary activities, charitable donations and activities to care for children. During the Reporting Period, the total hours of the faculty members and staff of the Group devoted into voluntary service reached 3,708 days.

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Environmental, Social and Governance Report 2019

The Group's on- and off-campus voluntary activities include but are not limited to:

  • Voluntary teaching;
  • Visits to nursing homes;
  • Promotion of cultural, scientific and hygienic knowledge to rural communities in summer vacation;
  • Fund-raisingactivities;
  • Blood donation;
  • Teaching activities for public welfare;
  • Community services, etc.

Example 1: Voluntary teaching in Maiyunfang Primary School in Changling

The Red Cross Student Branch and the Youth Volunteer Association of the colleges affiliated to the Group, together with Maiyunfang Primary School in Changling, organized college students' voluntary teaching activities. Volunteers taught the children daily medical knowledge and played games with them. This activity aimed to repay the society, enrich the learning and life of primary and secondary school students in Zengcheng District, help the children grow up healthily, maintain and improve the social influence of youth volunteers and spread positive energy of the society.

Example 2: Visits to nursing homes

In order to strengthen the ideological and moral education of students and cultivate their sense of social responsibility, the Group's colleges organized visits to nursing homes to convey love to the elderly of the society.

Environmental, Social and Governance Report 2019 21

Environmental, Social and Governance Report 2019

General Disclosures and KPIs as set out in the Appendix 27 of the Listing Rules:

Item

Description

Chapter

A. Environmental

A.1 Emissions

General Disclosure

Information on:

Emissions

(a) the policies; and

(b) compliance with relevant laws and

regulations that have a significant

impact on the issuer

relating to air and greenhouse gas

emissions, discharges into water and land,

and generation of hazardous and non-

hazardous waste.

KPIs

A1.1

The types of emissions and respective

Exhaust

emissions data.

A1.2

Greenhouse gas emissions in total and

Greenhouse Gases

intensity.

A1.3

Total hazardous waste produced and

Hazardous and Non-

intensity.

Hazardous Wastes

A1.4

Total non-hazardous waste produced and

Hazardous and Non-

intensity.

Hazardous Wastes

A1.5

Description of measures to mitigate

Measures to Mitigate

emissions and results achieved.

Emissions

A1.6

Description of how hazardous and non-

Measures to Reduce

hazardous wastes are handled, reduction

Wastes Generated

initiatives and results achieved.

A2: Use of Resources

General Disclosure

Policies on the efficient use of resources,

Energy Use

including energy, water and other raw

Efficiency

materials.

22 Edvantage Group Holdings Limited

Environmental, Social and Governance Report 2019

Item

Description

Chapter

KPIs

A2.1

Direct and/or indirect energy consumption by

Total Energy

type in total and intensity.

Consumption

A2.2

Water consumption in total and intensity.

Total Energy

Consumption

A2.3

Description of energy use efficiency

Energy Use

initiatives and results achieved.

Efficiency

A2.4

Description of whether there is any issue in

Appropriate Water

sourcing water that is fit for purpose, water

Source

efficiency initiatives and results achieved.

A2.5

Total packaging material used for finished

N/A

products and with reference to per unit

produced.

A3: The Environment and Natural Resources

General Disclosure

Policies on minimizing the issuer's significant

The Environment and

impact on the environment and natural

Natural Resources

resources.

KPIs

A3.1

Description of the significant impacts of

The Environment and

activities on the environment and natural

Natural Resources

resources and the actions taken to manage

them.

B. Social

B1: Employment

General Disclosure

Information on:

Employment

(a) the policies; and

(b) compliance with relevant laws and

regulations that have a significant

impact on the issuer

relating to compensation and dismissal,

recruitment and promotion, working hours,

rest periods, equal opportunity, diversity,

anti-discrimination, and other benefits and

welfare.

KPIs

B1.1

Total workforce by gender, employment type,

Total Number and

age group and geographical region.

Classification of

Employees

B1.2

Employee turnover rate by gender, age

Employee Turnover

group and geographical region.

Environmental, Social and Governance Report 2019 23

Environmental, Social and Governance Report 2019

Item

Description

Chapter

B2: Health and Safety

General Disclosure

Information on:

Health and Safety

(a) the policies; and

(b) compliance with relevant laws and

regulations that have a significant

impact on the issuer

relating to providing a safe working

environment and protecting employees from

occupational hazards.

KPIs

B2.1

Number and rate of work-related fatalities.

Health and Safety

B2.2

Lost days due to work injury.

Health and Safety

B2.3

Description of occupational health and

Health and Safety

safety measures adopted, how they are

implemented and monitored.

B3: Development and Training

General Disclosure

Policies on improving employees' knowledge

Development and

and skills for discharging duties at work.

Training

Description of training activities.

KPIs

B3.1

The percentage of employees trained by

Development and

gender and employee category (e.g. senior

Training

management, middle management).

B3.2

The average training hours completed

Development and

per employee by gender and employee

Training

category.

24 Edvantage Group Holdings Limited

Environmental, Social and Governance Report 2019

Item

Description

Chapter

B4: Labor Standards

General Disclosure

Information on:

Labor Standards

(a)

the policies; and

(b) compliance with relevant laws and

regulations that have a significant

impact on the issuer

relating to preventing child and forced labor.

KPIs

B4.1

Description of measures to review

Labor Standards

employment practices to avoid child and

forced labor.

B4.2

Description of steps taken to eliminate such

Labor Standards

practices when discovered.

B5: Supply Chain Management

General Disclosure

Policies on managing environmental and

Supply Chain

social risks of the supply chain.

Management

KPIs

B5.1

Number of suppliers by geographical region.

Supply Chain

Management

B5.2

Description of practices relating to engaging

Supply Chain

suppliers, number of suppliers where the

Management

practices are being implemented, how they

are implemented and monitored.

B6: Product Responsibility

General Disclosure

Information on:

Teaching Quality,

Student Enrollment,

(a)

the policies; and

Intellectual Property

(b) compliance with relevant laws and

Rights and Privacy

regulations that have a significant

Policies

impact on the issuer

relating to health and safety, advertising, labeling and privacy matters relating

to products and services provided and methods of redress.

Environmental, Social and Governance Report 2019 25

Environmental, Social and Governance Report 2019

Item

Description

Chapter

KPIs

B6.1

Percentage of total products sold or shipped

N/A

subject to recalls for safety and health

reasons.

B6.2

Number of products and service-related

Service-Related

complaints received and how they are dealt

Complaints and

with.

Solutions

B6.3

Description of practices relating to observing

Intellectual Property

and protecting intellectual property rights.

Rights

B6.4

Description of quality assurance process and

Teaching Quality

recall procedures.

B6.5

Description of consumer data protection and

Privacy Policies

privacy policies, how they are implemented

and monitored.

B7: Anti-Corruption

General Disclosure

Information on:

Anti-Corruption

(a) the policies; and

(b) compliance with relevant laws and

regulations that have a significant

impact on the issuer

relating to bribery, extortion, fraud and

money laundering.

KPIs

B7.1

Number of concluded legal cases regarding

Anti-Corruption

corrupt practices brought against the issuer

or its employees during the reporting period

and the outcomes of the cases.

B7.2

Description of preventive measures and

Anti-Corruption

whistle-blowing procedures, how they are

implemented and monitored.

B8: Community Investment

General Disclosure

Policies on community engagement to

Community

understand the needs of the communities

Investment

where the issuer operates and to ensure

its activities take into consideration the

communities' interests.

KPIs

B8.1

Focus areas of contribution (e.g. education,

Community

environmental concerns, labor needs, health,

Investment

culture, sport).

B8.2

Resources contributed (e.g. money or time)

Community

to the focus area.

Investment

26 Edvantage Group Holdings Limited

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Edvantage Group Holdings Ltd. published this content on 13 March 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 March 2020 14:44:06 UTC