EV-DYNAMICS-ESG - 2023 Report

TABLE OF CONTENTS
Pages
Scope and Reporting Period 2

Reporting Principles 2
The Group’s Mission and Vision 3
The Board’s Statement 3
Stakeholder Engagement and Materiality 4
Stakeholders’ Feedback 6
Awards and Recognition 6
A. Environmental 7
A1. Emissions 7
A1.1 Air Emissions 7
A1.2 GHG Emissions 8
A1.3 Hazardous Waste 9
A1.4 Non-hazardous Waste 9
A1.5 Measures to Mitigate Emissions 10
A1.6 Wastes Handling and Reduction Initiatives 11
A2. Use of Resources 12
A2.1 Energy Consumption 12
A2.2 Water Consumption 13
A2.3 Energy Use Efficiency Initiatives 14
A2.4 Water Use Efficiency Initiatives 14
A2.5 Packaging Material 15
A3. The Environment and Natural Resources 15
A3.1 Significant Impacts of Activities on the Environment 15
A4. Climate Change 16
B. Social 19
1. Employment and Labour Practices 19
B1. Employment 19
B2. Occupational Health and Safety 23
B3. Development and Training 25
B4. Labour Standards 27
2. Operating Practices 27
B5. Supply Chain Management 27
B6. Product Responsibility 29
B7. Anti-corruption 30
B8. Community Investment 32
Ev Dynamics (Holdings) Limited

Environmental, Social and Governance Report 2023 1
SCOPE AND REPORTING PERIOD
This ESG report was prepared by Ev Dynamics (Holdings) Limited (hereinafter referred as the “Company”,
and together with its subsidiaries referred as the “Group”), highlighting its Environmental, Social and
Governance (the “ESG”) performance, with disclosure reference made to the ESG Reporting Guide
as set out in Appendix 27 to the Main Board Listing Rules Governing the Listing of Securities on The
Stock Exchange of Hong Kong Limited (the “Listing Rules” and “Stock Exchange” respectively).
This ESG report covers the Group’s principal operations in two subject areas, namely, the Environmental
and Social of the business operations in Hong Kong including the general administrative and operational
office in Hong Kong (the “Hong Kong Office”) and its principal business, automotive manufacturing
plant, in Chongqing, the People’s Republic of China (the “PRC Manufacturing Plant”) from 1 April 2022
to 31 March 2023 (the “Reporting Period”), unless otherwise stated. These two business operations
represent the core operations of the Group during the Reporting Period.
For the Group’s information on corporate governance practice, please refer to the “CORPORATE
GOVERNANCE REPORT” on pages 48 to 65 of the Group’s 2023 Annual Report.
REPORTING PRINCIPLES
The preparation of the ESG Report has applied the following principles:
Materiality – materiality assessments have been carried out to identify material environmental and
social issues that have major impacts on investors and other stakeholders, the significant stakeholders,
procedures, and results of the engagement are presented in the section headed “Stakeholder
Engagement and Materiality” in this report.
Quantitative – key performance indicators (the “KPI”s) have been established to make measurable and
applicable comparisons under appropriate conditions. Information on the standards, its methodologies
and assumptions, its calculation tools used and its sources of conversion factors used have been
disclosed when applicable.
Balance – performance of the Group was presented impartially, avoiding choices, omissions or
presentation formats that may unduly influence readers’ decisions or judgements.
Consistency – consistent statistical methodologies and presentation of KPIs have been used to allow
meaningful comparisons of related data over time.

2 Environmental, Social and Governance Report 2023
THE GROUP’S MISSION AND VISION
The Group aims to achieve positive and sustainable outcomes for its businesses, the environment
and the community. The Group strives to increase cost efficiency by minimising production costs and
obtaining the optimum economies of scale. In addition, the Group aims to be an environmentally
friendly corporate by developing pure electric vehicles and providing healthier or cleaner resources
to customers.
THE BOARD’S STATEMENT
The board of directors (the “Board”) regularly reviews environmental and social-related performance
and disclosures to ensure compliance with the Listing Rules requirements. The Board has overall
responsibility for ESG strategy and reporting. The Board monitors and evaluates the implementation of
environmental, social and governance policies in business operations, and leads an inter-departmental
working group to formulate and implement feasible work plans on environmental, social and governance
matters. The Board is also responsible for prioritising ESG-related issues to find out the material issues
of the Group’s stakeholders and reviewing the progress made against ESG-related goals and targets.
The climate-related issues are integrated into the management strategies. During the regular reviewing
process of the Group’s ESG performance, immediate action will be taken if any risk is identified. The
inter-departmental working group formulated corresponding climate-related risk management strategies
to cope with the challenges brought by the risks. Details of the climate-related risk management
strategies of the Group are mentioned in section A4 “Climate Change”.
The Board takes ESG issues seriously, and senior management in each department monitors their areas,
looks for areas for improvement and responds to stakeholders’ concerns and launches a development
plan. During the Reporting Period, the Group continues to standardize the ESG-related issues and
focuses on the process of determining material ESG-related issues. Based on the Group’s development
strategy, the Group optimizes communications and engages key stakeholders to identify, assess and
manage ESG-related issues. The Board supervises the preparation process of the ESG report, reviews
and approves the annual ESG report, and ensures the authenticity and effectiveness of information
disclosure.
The Group believes that, as an environmental protection company developing pure electric vehicles to
meet international demand, the increase in environmental awareness around the world has a positive
impact on its business.

STAKEHOLDER ENGAGEMENT AND MATERIALITY
The Group communicates regularly with and gathers feedback from stakeholders through various
channels to understand their expectations, build and maintain a good relationship, and identify the
most significant environmental and social aspects of the Group’s operations to its stakeholders. The
table below outlines the Group’s various dialogue channels for different types of stakeholders:
Stakeholders Means of communications
Shareholders/investors • Shareholders’ general meeting

• Announcement
• Press release
• Investor meeting
• Company’s website
• Email or postal correspondences, telephone enquiries or fax
Directors • Directors’ meeting
Employees • Training programmes

• Employees’ performance review
• Work review meeting
• Email or telephone
• Inspection of complaints mailbox
Customers • Exhibition
• Customer meeting
• Product training
• Product maintenance
Suppliers • Exhibition
• Supplier meeting
• Factory site-visit
• Pre-testing orders
• After order service
Government and regulators • Government meeting

• Inviting visit

During the Reporting Period, the Group has specifically engaged board members, senior management,
frontline employees and business partners to gain further insights on ESG aspects they find material.
The Materiality Matrix below shows the result of the Group’s materiality assessment process:
Materiality of Different Topics from Stakeholder Engagement

HIGHER
B1
A7
Importance to Stakeholders
A3
B2
A1
B7
B9 B4
B11 A6 B8
B6 B3
B10
B5
A2 A4
A5
LOWER
LOWER HIGHER
Internal Assessment on Importance to Business
Environmental Social
A1 Energy B1 Employment
A2 Water B2 Occupational Health and Safety
A3 Air Emission B3 Development and Training
A4 Waste and Effluent B4 Labour Standards
A5 Other Raw Materials Consumption B5 Supplier Management
A6 Environmental Protection Measures B6 Intellectual Property Rights
A7 Climate Change B7 Data Protection
B8 Customer Service
B9 Product/Service Quality
B10 Anti-corruption
B11 Community Investment

The following topics have been deemed as the most important by stakeholders:
• Labour Standards;
• Data Protection;
• Occupational Health and Safety;
• Customer Service;
• Product/Service Quality; and
• Employment.
The Group reviews and manages the material aspects with policies and best practices and will continue
to work towards building positive relations with its stakeholders, improving the overall ESG performance
and developing better control of ESG-related risks. Through the development of pure electric vehicles,
the Group strives to reduce its impact on the environment and society and to achieve sustainable
and optimum economic growth with a company strategy on new products and new energy business.
STAKEHOLDERS’ FEEDBACK
The Group welcomes stakeholders’ feedback on its ESG approach and performance. Suggestions or views
can be sent by post: 46th Floor, United Asia Finance Centre, 333 Lockhart Road, Wan Chai, Hong Kong
or through the communication channels described on the Company’s website: www.evdynamics.com.
AWARDS AND RECOGNITION

The Group is a pioneer and prominent enterprise which integrates the design, development,
manufacture, sales and technical services of new energy buses and vehicles, and their entire electric
power and control systems, other vehicles and vehicle components. The production qualification
of passenger cars and new energy vehicle products had been approved by the Ministry of Industry
and Information Technology of the People’s Republic of China (the “PRC”). The Group obtained the
ISO 9001:2015 Quality Management System Certificate, ISO 50001:2018 Energy Management System
Certificate, ISO 14001:2015 Environmental Management System Certificate and the national compulsory
3C certificate from China Quality Certification Centre. Besides, the qualification of automobile export
had been approved by the Ministry of Commerce of the PRC, the Ministry of Industry and Information
Technology of the PRC, the General Administration of Customs of the PRC, the General Administration
of Quality Supervision, Inspection and Quarantine of the PRC and Certification and Accreditation
Administration of the PRC (CNCA). The Group had been included in the “List of Enterprises Eligible
for Applying for Automobile Export License” since 2016.

A. ENVIRONMENTAL
A1. EMISSIONS
The Group adopts environmental management policies and practices to improve operational
efficiency and convey mutual benefits to society and itself.
The PRC Manufacturing Plant strictly complied with national and local laws and regulations
concerning environmental protection and pollution control, including but not limited to:
• Environmental Protection Law of the PRC;
• Law of the PRC on the Prevention and Control of Atmospheric Pollution;
• Law of the PRC on the Prevention and Control of Environmental Noise Pollution;
• Law of the PRC on the Prevention and Control of Water Pollution; and
• Law of the PRC on the Prevention and Control of Environmental Pollution by Solid Waste.
During the Reporting Period, the Group did not note any cases of material non-compliance with
laws and regulations relating to air and greenhouse gas (“GHG”) emissions, discharge into water
and land, and the generation and disposal of hazardous and non-hazardous waste.
A1.1 Air Emissions

During the Reporting Period, air emissions were mainly generated from fuel consumption
by the Group’s vehicles. The Group’s production did not involve any stationary combustion
of gaseous fuel.
Petrol and diesel were mainly used for passenger cars for the Group’s local business
commuting. During the Reporting Period, 0.21 kg (2022: 0.46 kg) of sulphur oxides (“SOX”)
was emitted from the gaseous fuel consumption of the Group, while 2.91 kg (2022: 7.12
kg) of nitrogen oxides (“NO X”) and 0.21 kg (2022: 0.52 kg) of particular matter (“PM”) were
emitted from the PRC Manufacturing Plant’s fuel consumption.

A. ENVIRONMENTAL
A1.2 GHG Emissions

During the Reporting Period, the Group generated 168.25 tCO 2eq (2022: 309.47 tCO 2eq),
resulting in a carbon intensity of 4.10 tCO 2 eq (2022: 6.19 tCO 2 eq) per employee. The
decrease in total GHG emission and carbon intensity could be attributed to the decrease
in energy consumption, which will be discussed in section A2.1 “Energy Consumption”.
Emission (in tonnes

of carbon dioxide Percentage of
Scope of GHG Emissions Emission Sources equivalent “tCO 2eq”) Total Emission
2023 2022 2023 2022
Scope 1
Direct Emission Combustion of Fuel for Mobile 38.14 81.66 21% 26%
Combustion Source
– Petrol and Diesel
Tree Planting (2.09) (1.82)
Scope 2
Energy Indirect Emission Purchased Electricity 119.97 213.87 72% 69%
Scope 3
Other Indirect Emission Paper Waste Disposal 0.90 1.61 7% 5%
Electricity used for Processing 2.99 9.47
Fresh Water
Electricity used for Processing 0.80 1.20
Sewage
Business Air Travel 7.54 3.48
Total 168.25 309.47 100% 100%
Notes:
– tCO 2eq represents tonnes of carbon dioxide equivalent GHG (mainly carbon dioxide, methane and
nitrous oxide).
– Emission factors were referred to Appendix 27 to the Listing Rules and their referred documentation
as set out by the Stock Exchange unless stated otherwise.
– Combined margin emission factors of 0.581 and 0.68 tCO 2/MWh were used for purchased electricity
in the PRC and Hong Kong respectively.
– Tree planting: 12 new trees had been planted in the PRC Manufacturing Plant during the Reporting
Period.

A. ENVIRONMENTAL
The figure below illustrates the comparison of GHG emission intensity by year.
Changes of Emissions by Scope of Years 2021-2023
9
Emission Intensity (tCO2eq/employee)
8 0.13
7
6 0.32
5 5.89
4 0.30
4.27
3
2.92
2
1 1.60 1.81
0.88
0
2023 2022 2021
Scope 1 Scope 2 Scope 3
A1.3 Hazardous Waste

Hazardous waste generated from the Group’s operation during the Reporting Period is
593.50 kg (2022: 1,008.06 kg), resulting in an intensity of 14.48 kg (2022: 20.16 kg) per
employee, which included waste ink and paint, toner cartridges and fluorescent tubes.
For the Hong Kong Office, hazardous waste was collected by the supplier for recycling.
For the PRC Manufacturing Plant, all the hazardous waste was collected and handled by
a qualified waste handling company.
A1.4 Non-hazardous Waste

Non-hazardous waste mainly consisted of wastepaper, waste wood materials and
commercial waste from offices and manufacturing plant. During the Reporting Period,
the Group generated 0.78 tonnes (2022: 1.03 tonnes) of wastepaper, in which 0.28 tonnes
(2022: 0.33 tonnes) of office wastepaper was sent to the landfill. Apart from the wastepaper,
approximately 1.40 tonnes (2022: 1.30 tonnes) of domestic and commercial waste were
generated from the PRC Manufacturing Plant. The total amount of non-hazardous waste
generated during the Reporting Period was 2.18 tonnes (2022: 2.33 tonnes), resulting in
an intensity of 0.05 tonnes (2022: 0.05 tonnes) per employee.

A. ENVIRONMENTAL
A1.5 Measures to Mitigate Emissions

The Group has set a target to reduce 10% of GHG emission intensity in 10 years, or by the
year 2032, with 2022 as the base year. To achieve this goal, the Group has implemented
some measures to mitigate GHG emissions.
As part of the Group’s environmental policy, employees are encouraged to reduce business
air travel. The Group keeps track of employees’ business travelling and their corresponding
carbon emissions throughout the year. The Group has installed telephone conference
facilities in the office setting. Employees are encouraged to make use of teleconferencing
to reduce flight frequency and hence carbon footprint.
When purchasing new office electronic equipment, the Group opts for products with high
energy efficiency and low emissions. Local products and office accommodations are given
priority to reduce transportation and hence indirect emissions.
Since 2018, the Group had planted various species of trees in the PRC Manufacturing
Plant for the assimilation of carbon dioxide. During this Reporting Period, 12 new trees
had been planted in the PRC Manufacturing Plant.
The GHG emission intensity decreased by 34% compared with the previous reporting
period. The significant decrease in GHG emission is due to the decrease in the production
activity in PRC Manufacturing Plant compared with the previous reporting period. The
Group will continue to review the existing GHG emissions reduction measures in order to
maintain the GHG emissions reduction efficiency.
Note: The GHG emission reduction target has been restated to compare the intensity instead of the
absolute amount in order to reflect the actual situation of the Group’s environmental performance.

A. ENVIRONMENTAL
A1.6 Wastes Handling and Reduction Initiatives

The Group aims to reduce 30% of waste intensity in 10 years, or by the year 2032, with
2022 as the base year, and strives to adopt various measures to achieve this goal.
The Hong Kong Office supports the waste reduction programme of its supplier by returning
used toner cartridges for recycling. Besides, the following waste reduction practices have
been adopted and encouraged. These practices are promoted by displaying promotional
messages in different office areas, such as the printing area and pantry:
• Reduce unnecessary printing;
• Collect and reuse single-sided paper;
• Reuse office stationeries when appropriate;
• Use e-mail instead of fax;
• Buy only when necessary;
• Reduce plastic rubbish bags consumption;
• Reuse and recycle containers and utensils; and
• Reuse or donate unwanted items.
For the PRC Manufacturing Plant, hazardous waste was sent to a qualified environmental
protection engineering company for further handling, complying with applicable laws and
regulations. Similar to the practice in Hong Kong Office, the PRC Manufacturing Plant
also displays promotional messages in different areas to encourage the staff to follow
waste reduction routines, such as food waste reduction messages in the canteen area,
and tissue paper waste reduction at restrooms. Besides, the Group has installed recycling
bins with proper signages in the public area. Since 2022, the PRC Manufacturing Plant has
formulated a food waste reduction policy in which the amount of food in the canteen is
prepared according to the number of employees present every working day.

A. ENVIRONMENTAL
During the Reporting Period, the non-hazardous waste intensity remained the same with
the previous reporting period, and the hazardous waste intensity was reduced by 28%
compared with the previous reporting period. The Group will continue to review the
existing waste reduction measures in order to improve waste reduction efficiency.
Note: The waste reduction target has been restated to compare the intensity instead of the absolute
amount in order to reflect the actual situation of the Group’s environmental performance.
A2. USE OF RESOURCES
A2.1 Energy Consumption

The Group’s business operations resulted in total energy consumption of 332.33 MWh
(2022: 626.75 MWh), with an intensity of 8.11 MWh (2022: 12.54 MWh) per employee, from
the use of electricity, diesel and petrol. The total energy consumption (in MWh) during
the Reporting Period decreased by 47% compared with the previous reporting period. The
significant decrease in energy consumption was due to the decrease in the production
activity in PRC Manufacturing Plant compared with the previous reporting period. The
tables below present the details of energy consumption and consumption intensity per
employee.
Energy Consumption Sources Direct Consumption Consumption in MWh

2023 2022 2023 2022
Electricity 198.40 MWh 342.83 MWh 198.40 342.83

Petrol 13,992.71 L 26,328.74 L 130.44 239.98
Diesel 349.36 L 4,394.75 L 3.49 43.94
Total 332.33 626.75
Energy Consumption Sources Consumption Intensity (MWh/employee)

2023 2022 2021
Electricity 4.84 6.86 6.94

Petrol 3.18 4.80 5.87
Diesel 0.09 0.88 0.30
Total 8.11 12.54 13.11

A. ENVIRONMENTAL
A2.2 Water Consumption

During the Reporting Period, 6,987 m 3 (2022: 22,700.00 m 3) of freshwater was consumed by
the PRC Manufacturing Plant, resulting in an intensity of 367.74 m 3 (2022: 810.71 m 3) per
employee. A significant decrease in water consumption during the Reporting Period was
due to the decrease in the production activity in the PRC Manufacturing Plant compared
with the previous reporting period. Besides, the water main incident occurred last year had
been fixed, resulting a significant reduction in water consumption during the Reporting
Period.
The Hong Kong Office’s water supply and discharge were managed by the building’s
management office and hence the breakdown was, therefore, not readily available. It is
noteworthy that the Hong Kong Office’s water consumption was insignificant.
Note: As the Hong Kong Office’s water supply was not directly controlled by the Group, the number
of employees of the Hong Kong Office is excluded in the calculation of the intensity of water
consumption (i.e. the amount of water consumption/the number of employees of PRC Manufacturing
Plant).
Changes of Water Intensity by Scope of Years 2021-2023
900
810.71
Water Intensity (m3/employee)
800
700
600
500
367.74 361.32
400
300
200
100
0
2023 2022 2021

A. ENVIRONMENTAL
A2.3 Energy Use Efficiency Initiatives

The Group aims to reduce 10% of energy consumption intensity in 10 years, or by the year
2032, with 2022 as the base year, and has adopted some measures and practices to achieve
it. The Group has been replacing traditional lighting with LEDs in the Hong Kong Office.
The thermometer has also been installed to encourage employees to be more aware of
the suitable and comfortable temperature for necessary air conditioning adjustments.
Moreover, an energy-efficient model is preferred when purchasing new office equipment,
such as printers, for greater energy conservation. Employees are also encouraged to take
public transport for the business commute to work and meetings.
Reminders are posted in the Hong Kong Office to remind employees of energy-saving
behaviours such as:
• Activate auto energy-saving mode;
• Lower the brightness of computer screens;
• Switch off lighting, air-conditioners, and electronic appliance during lunch break,
before leaving work, and after use; and
• Use heating facilities, dehumidifier and office equipment only when necessary.
The energy consumption intensity was decreased by 35% compared with the previous
reporting period. The Group will continue to review the existing energy consumption
reduction measures in order to maintain the energy consumption reduction efficiency.
Note: The energy consumption reduction target has been restated to compare the intensity instead of the
A2.4 Water Use Efficiency Initiatives

The Group had set a target to reduce 10% of water consumption intensity in 10 years, or
by the year 2032, with 2022 as the base year. To achieve this target, the Group adopted
various water-saving measures. For instance, the Group encourages water saving by posting
green messages in pantries and washrooms as reminders for conserving water resources.
In addition, the Group has installed flow controllers in water taps and regular maintenance
of the water supply network to reduce the leakage rate. There was no issue in sourcing
water that was fit for purpose for the Group during the Reporting Period.

A. ENVIRONMENTAL
The water consumption intensity was decreased by 55% compared with the previous
reporting period. The Group will continue to review the existing water consumption
reduction measures in order to maintain the water consumption reduction efficiency.
Note: The water consumption reduction target has been restated to compare the intensity instead of the
Wastewater Discharge
The PRC Manufacturing Plant is equipped with on-site wastewater treatment facilities
to conduct pre-treatment of sewage generated from production and domestic activities
before discharge to the wastewater treatment plant within the industrial park. Effluent
discharged met Level 1 of the Integrated Wastewater Discharge Standard GB8978 – 1996
(Table 4), which sets limits for parameters such as pH, suspended solids (“SS”), chemical
oxygen demand (“COD”), biochemical oxygen demand (“BOD”) and Ammonia-Nitrogen
(“NH 3 -N”). Sludge is then collected by a licensed collector for further treatment. No
exceedances were reported during the Reporting Period.
A2.5 Packaging Material

The finished products of the Group are mainly vehicles, for which the delivery does not
involve material use of packaging materials. Hence, no such data is reported.
A3. THE ENVIRONMENT AND NATURAL RESOURCES
A3.1 Significant Impacts of Activities on the Environment

The Group’s major business involves electric vehicle development and manufacturing, of
which the production generates wastewater, GHG and air emissions. The Group monitors
and manages wastewater discharged from on-site wastewater treatment facilities, ensuring
that it has met the national discharge standard. The Group also reviews and updates the
energy conservation practices for its production process regularly. With the implementation
of green practices, the Group has been minimising its significant impact on the environment
and natural resources.
Heavy photochemical smog and haze in the PRC have been an ongoing issue in recent
years. One of the factors contributing to the continuing deterioration is the increase in
transportation, which results in a higher level of emissions. Electrification of cars is inevitably
a global trend to improve air quality. Thus, the Group commits to being an environmentally
friendly manufacturer of pure electric vehicles, investing in energy-efficient products. The
Group also strives to influence the market to adopt electric vehicles, minimising impacts
on the environment. The Group believes that electric vehicles can contribute to a better
and healthy environment for future generations.
A. ENVIRONMENTAL
A4. CLIMATE CHANGE

A warming planet creates a wide range of risks for businesses, from disrupted supply chains to
rising insurance costs to labour challenges. With the increasing threat of climate change and
the associated physical damage, change in market perception and shift in preference of the
public towards more environmentally friendly products and services, the financial, reputational
and strategic risk implications are becoming increasingly prominent. The risks derived from
climate change will undoubtedly be of increasing concern to the Group and industry as a whole
for the foreseeable future. The Group has identified the climate-related risks and opportunities
by using the following matrix.
Climate-related Risk Time Horizon Potential financial impacts Risk level
Physical Risks
Extreme weather Short term and The extreme weather may make transportation more Low
Long term difficult and affect the stability of the raw material supply.
To reduce the risk of supply chain disruption, the Group

cooperated with various approved suppliers from
different regions in the PRC to ensure a stable supply
of car components for manufacturing products. The
diversification of suppliers is an important practice to
maintain the stability of business in the long term.
Due to the effective above-mentioned measure adopted

by the Group, the physical risk level is low.
Transition Risks
Tightening of Long term Tightened environmental policies increase the cost Medium
climate-related of fulfilling such requirements. It might also raise the
policies operating costs, insurance costs and penalties for
noncompliance.
The Group has an experienced research and development

team to review the products regularly in order to ensure
compliance with climate-related requirements, so the
risk derived by the tightened environmental policies is
medium.

A. ENVIRONMENTAL
Cost to transition Long term In purpose to meet the increasing demand for Low
to lower environmentally friendly vehicle systems and products,
emissions more research and development of new vehicle systems
technology is needed, and it results in a high cost of research and
development. The expense consists of testing fees,
certificates of obtaining on vehicle design, and the
expense to the third-party suppliers for software and
vehicle systems.
To cope with the high cost of research and development

of new vehicle systems, the Group has expanded its
customer base to strive for more revenue.
With a large customer base developed, the risk of

the cost incurred by the transition to lower emissions
technology is low.
Changing customer Medium term A change in customer or user behaviour and preferences Low
behaviour and Long term leads to a loss in customer and income if there is a
failure to meet stakeholders’ expectations on climate
risk management and goals.
Following the growing demand for electric vehicles

in overseas, the Group has diversified its business to
overseas markets in Southeast Asia and Europe instead
of relying solely on the PRC market. The Group believes
that the risk of changing customer behaviour is low
as the main business of the Group is manufacturing
environmentally friendly electric vehicles, which can
meet the expectation of the customer behaviour and
preferences.

A. ENVIRONMENTAL
Reputation Risk Long term The change in customer or user preferences may increase Low
the chance of receiving negative stakeholder feedback
about the existing services. It may affect the reputation
of the Group.
The Group adopts industry best practices according to

the potential climate-related risks identified, which aims
to improve energy efficiency throughout the Group’s
operation. All internal professionals and frontline staff
are encouraged to focus on the daily procedure to
achieve the objective of climate change mitigation.
The Group believes that the reputation risk is low

as the main business of the Group is manufacturing
environmentally friendly electric vehicles, which can
meet the expectation of the customer behaviour and
preferences.
Opportunities
As climate change may lead to changes in consumer preferences for high energy efficiency
transportation, it is a favourable opportunity for the Group to commit as a manufacturer of
environmentally friendly pure electric vehicles in the future. Following this trend, the Group
strives to develop low-carbon goods and services to provide healthier and cleaner alternatives
for customers.

B. SOCIAL
1. EMPLOYMENT AND LABOUR PRACTICES
B1. Employment
The Group recognises employees are its greatest asset and commits to providing fair and
open employment opportunities. The Group strictly complies with national and local laws
and regulations, including but not limited to:
• Labour Law of the PRC;
• Labour Contract Law of the PRC; and
• Employment Ordinance in Hong Kong.
The Group did not note any cases of material non-compliance with laws and regulations
regarding the Group’s employment and labour practices including compensation and
dismissal, recruitment and promotion, working hours, rest periods, equal opportunity,
diversity, anti-discrimination, and other benefits and welfare for the Hong Kong Office
and the PRC Manufacturing Plant during the Reporting Period.

B. SOCIAL
Workforce
The operation of the Hong Kong Office and the PRC Manufacturing Plant had a total
number of 41 employees as of 31 March 2023 (2022: 50 employees), of whom 98% were
in full-time positions with the rest on a part-time basis. The tables below illustrate the
detailed distribution of the workforce.
Percentage of Workforce Percentage of Workforce

by Employee Category by Age Group
7% 0%
20% 15%
22%
71%
24%
41%
Senior Management Middle Management Age 18-25 Age 26-35 Age 36-45
Frontline and Other Employees Age 46-55 Age 56 or above
Percentage of Percentage of Workforce

Workforce by Gender by Geographical Region
46% 49%
54% 51%
Male Female Mainland China Hong Kong

B. SOCIAL
Turnover rate
There were 14 employees left the Group during the Reporting Period (2022: 0 employees),
resulting in an overall turnover rate of 34%. As some of the production process changed
to OEM model recently, it leads to the decrease in the production activities and decrease
in the workforce needed. The breakdowns of the turnover rate by employee category,
employment type, age group, gender and geographical region are shown in the following
table.
Turnover rate by employee category

Senior management 33%
Middle management 33%
Frontline and other staff 34%
Turnover rate by employment type

Full-time 33%
Part-time 100%
Turnover rate by age group

18 – 25 100%
26 – 35 0%
36 – 45 30%
46 – 55 53%
56 or above 13%
Turnover rate by gender

Male 45%
Female 21%
Turnover rate by geographical region

Mainland China 52%
Hong Kong 15%

B. SOCIAL
Employee Welfare
The Group has established a competitive remuneration system for its employees. They
are entitled to basic salaries, statutory holidays, various types of paid leave (annual,
marriage, compassionate, maternity, paternity and sick), medical allowance, transportation
allowance, and year-end bonus. The Group regularly reviews and upgrades its medical
coverage. Other benefits of the Group include share options and festival gifts. For the PRC
Manufacturing Plant, employees are entitled to social insurance and housing provident
funds under local laws and regulations.
The Group cares for and values employees’ work-life balance and mental wellness. It has
established fair and reasonable working hours and leaves policies to ensure sufficient
rest and leisure time for employees. Standard working hours for regular and seasonal
production periods have been stated in the employment contract. Compensation leaves
or pay is granted if overtime work is needed for production, observing relevant national
laws and regulations.
Appraisal
The Group conducts regular assessments to review employees’ job-required knowledge,
working attitude, sense of responsibility, efficiency, time management, effective use
of resources, and cooperation skills. These abilities are used as a reference for salary
adjustment and promotion. The appraisal process has been outlined in the employee
handbook.
Dismissal/Termination
Detailed conditions and procedures regarding contract expiration and termination have
been listed in the employment contract. Financial compensation is required for the party
terminating the contract without giving prior notice.

B. SOCIAL
Equal Opportunity
The Group strictly complies with the national and local standards relating to equal
opportunities and develops policies to eliminate discrimination in the Group, including
but not limited to the Disability Discrimination Ordinance (Cap. 487), Sex Discrimination
Ordinance (Cap. 480), Family Status Discrimination Ordinance (Cap. 527) and Race
Discrimination Ordinance (Cap. 602) in Hong Kong. The employee handbook outlines
the Group’s commitment to equal opportunities. Employees are not discriminated against
concerning recruitment, employment, training, promotion and employee benefits. The
Group makes decisions based on individual employees’ working capability, qualification,
and on-the-job experience, regardless of their gender, family status, ethnicity, marital
status, pregnancy, health care needs, or any other discrimination prohibited by applicable
law.
Staff Communication
The Group believes that effective communication can create trust among employees
and increase productivity. In the PRC Manufacturing Plant, a canteen and areas for
leisure activities are provided at the workplace. During the Reporting Period, the PRC
Manufacturing Plant held a staff communication meeting. In Hong Kong Office, most of
the social activities were suspended due to the COVID-19 pandemic, but a staff banquet
was arranged when our society returned to normal gradually.
B2. Occupational Health and Safety

Occupational health and safety are part of the Group’s fundamental value on social
sustainability. The Group strives to provide a safe, hygienic and productive working
environment for all employees through training, designated supervision, and regular
provision of general and occupational health checks. First-aider training is provided for
employees. Emergency contact lists and fire evacuation plans showing the locations of
emergency exits and emergency equipment are prominently displayed. A fire drill is
conducted annually to refresh employees’ knowledge of emergency procedures and
raise their awareness. In the PRC Manufacturing Plant, the Group identifies occupational
hazards regularly and designs preventive and control measures to minimise health risks.
The Group also provides personal protective equipment, such as earplugs, gloves, and
masks for filtering dust and odour, to its employees. Air purifiers are placed in corridors
and common areas throughout Hong Kong Office and the PRC Manufacturing Plant to
establish a healthier working environment for its employees.

B. SOCIAL
There were no work-related fatality or injury cases during the Reporting Period. The
Group did not note any cases of material non-compliance with health and safety laws and
regulations during the Reporting Period including but not limited to:
• the PRC Law on the Prevention and Control of Occupational Diseases; and
• the Occupational Safety and Health Ordinance (Cap. 509) in Hong Kong.
Occupational Health and

Safety Statistics 2023 2022 2021
Work-related fatality rate 0% 0% 0%

Work injury cases > 3 days 0 0 0
Work injury cases≤3 days 0 0 0
Lost days due to work injury 0 0 0
Responses to the COVID-19 pandemic

During the COVID-19 pandemic, the Group has taken measures to protect employees.
The Hong Kong Office has implemented work-from-home arrangements, reduced office
hours and rotational shifts policies to minimise the risk of the coronavirus outbreak. These
policies are reviewed and adjusted according to the situation of pandemics. Wages were
paid as usual to employees and medical subsidies were offered to the employees who
got infected with COVID-19. The Hong Kong Office also supplied protective resources
for employees, such as surgical masks, disinfectant alcohol, rapid antigen test (“RAT”)
kits and air purifiers.
The PRC Manufacturing Plant strengthened pandemics prevention by arranging frequent

disinfection of factory areas, requiring employees to wear masks and avoiding contact with
outsiders. In addition, the Group promoted personal hygiene to employees to maintain
a clean and hygienic working environment.

B. SOCIAL
B3. Development and Training

The Group considers training as a valuable tool to maintain the competency, professional
level, and integrity of its employees and their sense of belonging. With core business
focusing on innovation and advanced environmental technology, the Group motivates
employees to attend seminars, training, and conferences organised by professional
institutions, training centres and management schools to equip themselves with the most
updated industrial standards, laws and regulations, technology trends and market, as well
as essential knowledge and skills related to their job duties. The training materials cover
areas in accounting, corporate governance, environment, finance, tax, technology and
safety production management qualification training etc.
During the Reporting Period, the Group provided a total of 567.50 hours (2022: 232.00
hours) of training to its employees, with an average of 13.84 hours (2022: 4.64 hours) per
employee and 51% (2022: 30%) of the employees had received training. The percentage of
employees who received training during the Reporting Period increased by 21% compared
with the previous reporting period.
Percentage of Employees Trained by Percentage of Employees Trained by

Employee Category by Scope of Years 2021-2023 Gender by Scope of Years 2021-2023
120% 70%
64%
100% 60%
100%
78% 50%
80%
67% 37% 41%
40%
60% 32%
50%
30%
38% 21%
40% 19%
27% 20%
21% 21% 21%
20% 10%
0 0%
Senior Middle Frontline and Male Female
Management Management Other Employees
2023 2022 2021 2023 2022 2021

B. SOCIAL
Average Training Hours Completed per Employee by Average Training Hours Completed per Employee
Employee Category by Scope of Years 2021-2023 by Gender by Scope of Years 2021-2023
16.00 25.00
13.42 14.16
14.00 20.30
12.00 20.00
12.00
10.00 15.00
8.30
8.00
6.33
6.00 10.00
4.54 4.40 4.35 6.37 6.82
4.00
5.00 3.70
1.80 2.93 3.00
2.00
0.00 0.00
Senior Middle Frontline and
Male Female
Management Management Other Employees
2023 2022 2021 2023 2022 2021
The breakdowns of the training topics, the number of staff trained, and the completed
training hours are as follows:
The number of Training hours

Training topics staff trained completed
Anti-corruption 1 24.00
Occupational health and safety 12 288.00
Technological innovation 10 209.00
Accounting 3 11.50
Corporate governance 4 12.50
Corporate and Strategic 4 7.50
Tax 1 5.00
ESG 2 10.00
Total: 567.50

B. SOCIAL
B4. Labour Standards

The Group strictly complies with the respective labour laws and regulations in its operating
countries, including the Employment Ordinance (Cap. 57) in Hong Kong, the Labour Law
of the PRC and the Labour Contract Law of the PRC. The Group strictly prohibits the
hiring of child labour and opposes any form of forced labour. The Group formally goes
through background checks on every employee, which includes obtaining an identity card,
certificate and previous job reference letter to ensure that they are legally entitled to
work. All employees have signed the employment contract and agreed to the stipulated
employment terms and conditions. If the violation is found, the management will review the
recruitment procedure, identify and rectify the issues by revising the procedure, providing
further training to the concerned parties and taking disciplinary actions when necessary.
During the Reporting Period, the Group did not note any cases of material non-compliance
with laws and regulations regarding labour standards.
2. OPERATING PRACTICES
B5. Supply Chain Management

During the Reporting Period, there was no major change in policies on managing
environmental and social risks of the supply chain. The Group has a total of 148 (2022:
182) approved suppliers from the PRC for various automobile parts.
To ensure the Group has standardised procurement procedures and guidelines to follow
and to promote a consistent, sustainable and environmentally friendly procurement
function, the Group has established a procurement control procedure. The procedure
applies to all raw materials, components, production spare parts, tools, equipment and
office supplies. Standard workflow, related documents and forms, responsible parties and
areas of attention in each stage, from the request of purchase to payment upon receipt of
product or product returns, have been stated in the procedure. The simplified procurement
workflow is outlined below.

B. SOCIAL
Purchase Purchase Quotation

Requisition Planning Requests
Procurement Ordering Budget

tracking Approval
Product Goods Payment/

Inspection Receiving Return
The Group communicates with suppliers on their environmental and social responsibilities,
including the provision of a healthy and safe working environment, prohibition of child
and forced labour and a fair working environment without discrimination. To ensure the
quality of the suppliers, the Group evaluates and assesses the suppliers annually, and
selects the qualified suppliers for product or material procurement. The product quality
department of the Group inspects the products of the suppliers by assessing the sample
products provided by the suppliers, and then the purchasing department may arrange
on-site evaluations and meetings to assess the suppliers if necessary. The Group strives
to implement this practice strictly to ensure the suppliers comply with the related laws
and regulations of nations and customers’ satisfaction. The purchasing department, the
research and development department and the quality control department of the Group
pass the qualified suppliers, and it is finally approved by the manager. The qualified
suppliers are included in the “List of Qualified Suppliers” and archived by the purchasing
department. The Group continues to evaluate the suppliers according to their quality of
products and services, performance and cost advantage. The “List of Qualified Suppliers”
will be updated timely according to the results of the evaluations.
Office purchasing policy is adopted particularly for office operation, aiming at raising
awareness of green purchasing among employees. The Group purchases office paper
from suppliers who can provide Programme for the Endorsement of Forest Certification
(“PEFC”) or Forest Stewardship Council (“FSC”) certified paper.

B. SOCIAL
B6. Product Responsibility

During the Reporting Period, the Group did not note any cases of material non-compliance
with laws and regulations regarding health and safety, advertising, labelling and privacy
matters relating to products and services provided.
Quality Assurance
The Group has developed a standardised quality assurance procedure, which provides clear
instructions and processes for various levels of inspections and states the responsibility of
different departments. Every vehicle sold is provided with a user manual and a warranty is
provided. The Group has a standard after-sale service management procedure, in which a
dedicated national customer service hotline is available to handle any product or service-
related complaint after products are sold. A service satisfaction survey form is distributed
to customers for reflecting the service quality. Improvement measures will be formulated
to prevent the problems from happening again.
During the Reporting Period, no complaint was received, and no products were recalled
for safety and health reasons.
Customer Data Protection

The Group is committed to protecting customers’ personal information. All directors
and employees of the Group shall strictly abide by the Personal Data (Privacy) Ordinance
(Cap. 486) in Hong Kong and the General Principles of the Civil Law of the PRC and other
relevant laws, regulations and rules (applicable to employees in the PRC). The unauthorised
access or abuse of confidential information could result in disciplinary action, including
termination.
No substantiated complaint regarding a breach of client privacy, identified leak, theft, or

loss of customer information was received during the Reporting Period.

B. SOCIAL
Data Confidentiality
The Group strictly observes the Cybersecurity Law of the PRC as well as the internal
policies on data protection. The Group has established a clear management approach to
handle confidential information in the employment contract. Employees are prohibited to
disclose any information related to the Group, such as the Group’s partnering companies,
customer works, business operations, products, technology, financial matters, human
resources, research and development, and market information, without authorisation.
Also, the Group’s employment contract has mentioned the confidentiality clause and is
signed by every employee. This is to protect all materials, experiences and information
of the Group in areas including but not limited to the business plan, meeting content,
document content, financial data, marketing strategy, customer information, and human
resources information.
Intellectual Property Rights

The Group strictly complies with laws and regulations relating to intellectual property
protection, such as the Patent Law of the PRC. The Group applies pioneer technology
to continuously enhance its product quality. Through numerous tests and simulations,
the Group has obtained several utility model patents in the PRC. The Group protects
and enforces intellectual property rights. Directors and employees of the Group are not
allowed to sell or use any designs, company assets, property, data, trade information,
and resources for non-business purposes without authorisation. The Group shall bring
any patent rights infringement dispute to the Patent Re-examination Board of the State
Intellectual Property Office in the PRC for handling. As of the Reporting Period, the Group
has obtained 29 utility model patents and 1 design patent.
B7. Anti-corruption
The Group strives to maintain honesty, integrity and fairness in its business operations. The
Group strictly complies with anti-corruption related national and local laws and regulations
in the PRC and Hong Kong, including but not limited to:
• Criminal Law of the PRC;
• Anti-unfair Competition Law of the PRC;
• Anti-Money Laundering Law of the PRC; and
• Cap. 201 Prevention of Bribery Ordinance.

B. SOCIAL
The Group has formulated an internal control system and has set up a prevention of
commercial bribery control procedure on the receipt of money, gift, loan, commission,
payments, remuneration, any sort of securities or property, employment, contract, service
or favours, etc. The Group understands that employees may potentially face these situations
when dealing with customers, suppliers or contractors during business operations, and
thus guidelines and procedures have been outlined in the Group’s policy and employee
handbook for employees to seek advice on proper actions. The administrative department
reminds employees of laws and regulations relating to anti-corruption through notice
boards and emails.
Whistle-blowing Policy
The Group has established a whistle-blowing policy which encourages employees to report
on suspected cases of misconduct, through various channels such as the opinion box
situated at the canteen of the PRC Manufacturing Plant. The policy applies to all employees
in the Group and covers not limited to the violation of laws and regulations, but also to
the Group’s policies, damage and harm to the environment, public interest and personal
health and safety, discriminatory or disciplinary actions, bribery, extortion, fraud, money
laundering and other related crimes. Any suspicious issues reported will be followed up
and investigated by independent personnel. The whistle-blowers are protected in reporting
and investigation procedures which are free from unfair treatment and victimisation. The
Audit Committee is responsible for reviewing the whistle-blowing policy regularly and
recommending the material issues of the policy for the Board’s annual review.
Anti-corruption Training
The executive department of the Group reminds employees about the anti-corruption
laws and regulations through bulletin boards and emails to strengthen employees’ risk
awareness and promote a compliance culture in workplaces. During the Reporting Period,
the PRC Manufacturing Plant provided information through notice boards and emails
to all employees which are about the anti-corruption authorities and corruption laws
of the PRC. Besides, an anti-corruption training session was arranged for all the staff.
The contents of the training included the ways to avoid corruption taking place in the
workplace, the common means of corruption, the related laws and regulations and the
method of handling corruption cases. The Group attaches great importance to business
integrity and fair working culture and commits to providing various anti-corruption training
to employees in the future.

B. SOCIAL
There were no concluded legal cases regarding corrupt practices brought against the
Group or its employees, and the Group did not note any cases of non-compliance with
laws and regulations regarding bribery, extortion, fraud and money laundering during
the Reporting Period.
B8. Community Investment

The Group cares about the community’s well-being and social services. Not only does it put
effort into environmental protection, but also contributes to social responsibility, aiming to
raise environmental awareness and pay attention to the needy in the community. The Group
helps its employees overcome difficulties, illnesses, or situations that they come across.
Due to the outbreak of the COVID-19 pandemic, charitable activities were suspended
during the Reporting Period. The Group will continue to encourage its employees to
participate in charitable events in the future as our society is returning to normal gradually.


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TABLE OF CONTENTS

Scope and Reporting Period 2

Ev Dynamics (Holdings) Limited

Ev Dynamics (Holdings) Limited

THE BOARD’S STATEMENT

Ev Dynamics (Holdings) Limited

Stakeholders Means of communications

Shareholders/investors • Shareholders’ general meeting

Directors • Directors’ meeting

Employees • Training programmes

Government and regulators • Government meeting

Ev Dynamics (Holdings) Limited

Materiality of Different Topics from Stakeholder Engagement

Internal Assessment on Importance to Business

Ev Dynamics (Holdings) Limited

• Occupational Health and Safety;

• Product/Service Quality; and

AWARDS AND RECOGNITION

Ev Dynamics (Holdings) Limited

• Environmental Protection Law of the PRC;

• Law of the PRC on the Prevention and Control of Atmospheric Pollution;

A1.1 Air Emissions

Ev Dynamics (Holdings) Limited

A1.2 GHG Emissions

Emission (in tonnes

Total 168.25 309.47 100% 100%

Ev Dynamics (Holdings) Limited

Changes of Emissions by Scope of Years 2021-2023

A1.3 Hazardous Waste

A1.4 Non-hazardous Waste

Ev Dynamics (Holdings) Limited

A1.5 Measures to Mitigate Emissions

Ev Dynamics (Holdings) Limited

A1.6 Wastes Handling and Reduction Initiatives

• Reduce unnecessary printing;

• Collect and reuse single-sided paper;

• Reuse office stationeries when appropriate;

• Use e-mail instead of fax;

• Buy only when necessary;

• Reduce plastic rubbish bags consumption;

• Reuse and recycle containers and utensils; and

• Reuse or donate unwanted items.

Ev Dynamics (Holdings) Limited

A2. USE OF RESOURCES

A2.1 Energy Consumption

Energy Consumption Sources Direct Consumption Consumption in MWh

Electricity 198.40 MWh 342.83 MWh 198.40 342.83

Total 332.33 626.75

Energy Consumption Sources Consumption Intensity (MWh/employee)

Electricity 4.84 6.86 6.94

Total 8.11 12.54 13.11

Ev Dynamics (Holdings) Limited

A2.2 Water Consumption

Changes of Water Intensity by Scope of Years 2021-2023

Ev Dynamics (Holdings) Limited

A2.3 Energy Use Efficiency Initiatives

• Activate auto energy-saving mode;

• Lower the brightness of computer screens;

A2.4 Water Use Efficiency Initiatives