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Message from Vice Chairman and Chief ExecutiveAbout this ReportAbout UsOur CSR ApproachCSR HighlightsResponsibility to the EnvironmentResponsibility to our EmployeesResponsibility to our CustomersResponsibility to SocietyYour Feedback

P.3~4 P.5~6 P.7~12 P.13~20 P.21~26 P.27~41 P.42~63 P.64~69 P.70~84 P.8 5

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Message from Vice Chairman and Chief Executive

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

With the expansion of our business activities and operations, we have also come torealise our impact on the environment and local communities and our responsibility tomanage them. Furthermore, being a socially responsible company with a view tosustaining our business in the long term, we must integrate CSR into our businessstrategy. CSR is much more than running a business ethically and delivering topquality services to our customers. We are responsible to our employees for providinga safe and healthy work environment, work-life balance, rewarding careers, personaldevelopment opportunities, and competitive compensation and benefits. We areresponsible to the environment for preventing pollution, making the best use ofresources to minimise generation of waste, and educating people aboutenvironmental protection as all these can only be achieved by the concerted efforts ofrelated parties. We are also responsible to local communities for serving as a caringneighbour, investing in building a harmonious community, and advocating goodenvironmental practices.

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This Report will tell you about how we approach the CSR challenges, what we haveachieved so far and what we aim to achieve in the coming year. I am particularlyproud of our achievements in providing platform to employees and customers servingthe community and environmental initiatives at our managed properties, and I wouldlike to thank the dedication and enthusiasm of our employees and the occupants inthis and other CSR initiatives. For our employees, we continue to create a morestructured and transparent career and personal development path. With theestablishment of our People Development Academy in 2007, we are committed tonourishing our people to unleash their full potential. We will also continue to engagewith our customers to find out about their needs and concerns as well as to educatethem about living a healthy lifestyle and greening the environment. We have alwaysbeen actively involved in community service projects, whether by sponsorship or bythe contribution of our employee volunteer team. The experience has been rewardingfor all involved and we look forward to embarking on more life enriching projects inpartnership with community and charity groups in the future.

I sincerely hope you will enjoy reading ourCSR Report, which is a milestone in our longbut promising CSR journey. Your feedback onour CSR performance and reporting is veryimportant to us and I welcome you to write tous at hongyip@hongyip.com.

Ir. Alkin Kwong JPVice Chairman and Chief Executive

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About this ReportObjective and ScopeThis Report aims to inform our stakeholders about the Corporate SocialResponsibility (CSR) activities and performance of Hong Yip Service Co. Ltd for thecalendar year 2017. The background information is provided on some of our CSRinitiatives that have been in progress during 2017. This Report also covers ourchallenges and future objectives and targets in various CSR areas.

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

Approach to this ReportFirstly, this Report gives an overview of who we are, what we do, our businessphilosophy and our CSR approach. A summary of CSR highlights is included toshowcase our key CSR achievements in 2017. The Report then gives more detailson our CSR activities and performance in four main sections:

• Responsibility to the Environment• Responsibility to our Employees• Responsibility to our Customers• Responsibility to Society

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Stakeholder Engagement

We have limited the stakeholderengagement for our CSR Report to includethe most important asset of our Company -our employees. Their participation has beeninvaluable to the development of thisReport. We have a diverse list ofstakeholders including our customers,contractors/suppliers, business partners,non-government organisations (NGOs), thelocal community, and regulatory authorities.We already engage with some of thesestakeholders with regard to CSR issues,e.g., with our customers through ourcustomer surveys and home visits, and withNGOs through our community projects.

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About Us

Hong Yip Service Company Ltd (“Hong Yip”) is a whollyowned subsidiary of Sun Hung Kai Properties Ltd (SHKP).With over 50 years of solid property managementexperience, we have established ourselves as one of theleading property and facilities management companies inHong Kong. As of 31st December 2017, our managementportfolio consists of 1,571 buildings with over 127,800units, covering a total gross floor area of over 110 millionsquare feet, of which 51% (based on gross floor area)relates to properties developed by Sun Hung KaiProperties Group. External parties such as Hong KongPolytechnic University, other property developers andowners’ comittees also appoint us to manage propertieson their behalf.

We provide a wide range of professional servicesincluding security and IT system, cleaning, landscaping,maintenance and repair, management of car park, pooland clubhouse, shuttle bus service, etc. We also offermany value-added home convenience services to ourcustomers including daily mail drof-off, magazines andnewspapers delivery, laundry, seasonal banquetoffer,minor repair etc. Furthermore, our Quality AssuranceProgramme helps to increase the property value andupgrade the living standard and environment of ourcustomers.

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

Classification of Our Management Portfolio (Based on Gross Floor Area)

64%4%2%

28%

2%Residential

Commercial

Mall

Industrial

Facilities

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

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Environmental PolicyWe will comply with environmental legislations and support the government in its pursuance of environmental protection in order to:• Prevent pollution;• Minimise generation of waste; and• Make the best use of resources.

Complaint Management PolicyTo track, to follow up and to handle every complaint with heart in order to exceed customer satisfaction.

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

Our Commitment

Quality PolicyWe will deliver premier services with ultimate courtesy and manage every property to the highest quality standards.

Occupational Safety and Health PolicyWe will comply with occupational safety and health legislations to ensure the safety and health of our employees and related parties.

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We communicate our objectives, strategies, core values and performanceexpectations to all employees by:

• Conducting Annual Strategic Planning Meetings chaired by the Directorsand attended by Senior Managers.

• Distributing the Quality, Occupational Safety & Health and EnvironmentalPolicies Cards and Service Excellence Guidelines to all employees.

• Providing induction training courses to new employees.• Conveying the objectives and strategic implementation plans in Head

Office Executive Meetings, Area Meetings and Site Meetings attended bySenior and Area Managers and Building Supervisors.

• Encouraging open communication to all levels of the Company bydistributing messages through email, intranet, etc.

A handy pocket sized card distributed to all employees with a message on the Company’s commitment and policies from Alkin Kwong, Vice Chairman and Chief Executive.

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OrganisationalStructure

Hong Yip’s corporate departments include Building & Facilities Management, Technical Services, Information Technology, Procurement & Contracts, Community & Public Relations, Human Resources & Administration, Business Development & Accounting and Internal Audit. The Building & Facilities Management Department is divided into six different regions covering our managed properties on Hong Kong Island, Kowloon, and New Territories, and also our investment properties.

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

Financial Planning & Controls DepartmentHead of FP & ControlsHeaded by a qualified accountant (ACCA) is responsible for financial planning & reporting, financial analysis for the Hong Yip Group

Building & Facilities Management DepartmentDirectorsHeaded by qualified and experienced managerial staff (MCIH MHKIH RPHM) are responsible for overall planning and provision of professional property management services.

Security and Discipline DepartmentMr. Joseph YamHeaded by an experienced ex-police superintendent

Human Resources & Admin DepartmentHead of Human Resources & Administration(DBA LLM ACMA CGMA FHKIArb ACIS ACS MHKIHRM FHKPMA FITP) is responsible for the overall management and provision of HR, training and development, and administration functions.

Technical DepartmentHead of Technical ServicesHeaded by an experienced qualified professional engineer (MHKIE MHIREA MSOE RPE REA BEAM Pro MEM(UTS) MBSOMES) in building R&M, sustainability, safety and health and is responsible for supervision of over 600 technical /maintenance staff.

Procurement and Contracts DepartmentHead of ContractsHeaded by an experienced surveyor (BSc(Hon)in QS PD(Arb) is responsible for overall supervision of contracts and tenders.

Community & PR DepartmentHead of Community and Public RelationsHeaded by a qualified property manager (MCIH FHKIH RPHM).

Assisted by over 100 Area Managers, Heads of each region are responsible for overall quality control of day-to-day property management, pre-intake planning and community relations.

Chairman

Vice Chairman &Chief Executive(B.Sc (Eng), PgDIT C.Eng MIStE FHKIERPE AP RSE)

Directors(MCIH MHKIH RPHM)

Hong Yip Service Co Ltd - Organization Chart

Region 1: General Manager

Region 2:General Manager

Region 3:General Manager

Region 6:General Manager

Region 4:General Manager

Region 5:General Manager

Business Development & Accounting DepartmentHead of Business Development & Accounting DeptHeaded by a certified public accountant (FCCA FCPA) is responsible for financial planning & reporting, financial analysis, treasury and business planning & development.

Information Technology DepartmentHead of Information Technology (IEEE Computer Society) is responsible for the overall planning, organizing and execution of all IT functions.

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Our CSR Approach

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

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

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

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

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

Information Security Management SystemISO 27001:2013 certified for Head Office

Energy ManagementISO50001:2011 certified for Head Office

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Management Leadership

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

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

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Code of Ethics and Business Conduct

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

Internal Audit

Our Internal Audit department consists of ten employees and their role is toevaluate, monitor and improve the effectiveness of the controls and processesacross the Company. They perform financial review and operational review onissues including complaint management, customer satisfaction, food and hygienestandards, and cleaning services at our sites. They are also responsible forcarrying out environmental and safety audits on Hong Yip’s operations. TheInternal Audit department reports directly to the Chairman.

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Environmental and Safety Management

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Internal Committees

Our Green Committee and Safety Committee are responsible for the continuousidentification, evaluation and management of significant environmental and safetyissues associated with Hong Yip’s operations. Each of the six regions and the HeadOffice are represented by the Committee members.

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

The Safety Committee meets regularly to discuss various issues including the safetyrisks of work procedures and the necessary measures to mitigate them, theeffectiveness of these measures, accidents occurrence and prevention, and promotionalactivities for work safety.

We have appointed a Safety Officer and an Environmental Officer, who reports directlyto two Directors.

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Green Procurement Guidelines

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

• Avoidance of use of harmful substances during production• Application of the ‘4Rs’ of waste management: Reduce, Reuse, Replace and

Recycle• Energy efficiency of the product/service• Compliance of the product/service with environmental legislations

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

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Environmental and Safety Requirements for Contractors

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

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Did you know?

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

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

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

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

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5. CSR HighlightsBelow are highlights of our CSR achievements in 2017:

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CSR Highlights

Responsibility to the Environment

Below are highlights of our CSR achievements in 2017:

Certificates Attained from the Hong Kong Awards for Environmental Excellence (HKAEE)

HKAEE Certificate No. of CertificatesHong Kong Green Organization Certificate (HKGO) (香港綠色機構認證) 103

Wastewi$e Certificate (環保減廢標誌) 158

Energywi$e Certificate (環保節能標誌) 108

IAQwi$e Certificate (環保空氣質素標誌) 3

Carbonless Certificate (減碳證書) 8

Hong Yip adopts innovative green technology to enhance environmentalperformance in property management. During the year, 13 certified BEAMPro were employed to improve and promote environmental protection issues,including energy efficiency, material use and waste management.

Hong Yip also support government initiatives by signing the External LightingCharter which aims to minimise light pollution and energy waste. During theyear, we received more than 300 Hong Kong Awards for EnvironmentalExcellence (HKAEE) Certificates in recognition of outstanding environmentalachievements.

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Reducing Energy Consumption and Carbon Footprint

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

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

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Responsibility to our Employees

Continued to run our Mentorship Programme and Talent Development Programme inorder to provide the required professional and personal development for ouremployees.

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

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

In order to arouse the awareness of occupational health and safety matters to ourcustomers, we participated actively into the “Safe & Health Estate AccreditationScheme”, which was organized by the Occupational Safety and Health Council. Theresult was very encouraging. Manhattan Hill, Noble Hill, Peak One, Aria, Oscar by theSea, Pristine Villa & Park Central (Residential) achieved Excellent Performance whileBedford 28, Mei Chung Court, Sham Wan Towers, Royal Peninsula and WonderlandVillas granted Outstanding Performance.

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Responsibility to our Customers

• Continued with our Quality Assurance Programme(QAP) to upkeep andupgrade the hardware of our managed properties. As a result, 256 propertieshave passed the assessment in the 2nd phase of QAP. As a whole, 82.3% ofour managed portfolio accomplished the renovations in phase II.

• In the 2017 customer survey of Hong Yip’s property management services bySHKP, 97 scores out of 100 achieved in the customer satisfaction result.

• The clubhouses at our managed residential estates, Valais, Royal Peninsula,The Latitude and Imperial Cullinan were awarded the Hong Kong RecreationManagement Association.

• The Q-Mark Certificate (2004-2017) awarded by the Hong Kong Q-MarkCouncil Federation of Hong Kong Industries (the first property managementcompany to be awarded) to recognize the finest customer service quality ofHong Yip.

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Responsibility to Society

• 700 employees participated in our corporate volunteerservice, contributing over 50,000 service hours outside ofwork.

• 103 employees received individual recognition and 21volunteer teams received certifications from Social WelfareDepartment for their service hours.

• Residents from 19 of our managed residential estatesvolunteered in community services for the elderly andreceived the ‘Caring Estate’ logo from the Social WelfareDepartment. In addition, five estates were awarded the‘Leading Caring Estate’ logo.

• Received the ERB Excellence Award for Employers in the1st, 3rd – 10th sessions of the ERB Manpower DevelopmentScheme (organised by the Employees Retraining Board).

• Received the “ Outstanding Social Enterprise SupporterAward in the Tithe Ethical Consumption for consecutive 3years since 2015 (organized by Fullness SocialEnterprises Society)

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Responsibility to the Environment

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Energy Management

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

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

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

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

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

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

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Energy Saving Taskforce

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

• Setting out Guideline to promote energy saving practices applied in buildings• Promoting building to conduct energy audits to identify any Energy Management

Opportunities (EMOs)• Organizing energy saving workshop and training to frontline staffs• Carrying out research and development in energy efficiency products• Updating the latest legal and technical matters

Energy Saving Policy

In order to control energy consumption, our Energy Saving Policy focuses onestablishing energy saving processes in five main areas; energy audit, operationalplanning of the building services system, energy saving program implementation andcommunication, investment in energy saving and promotion to the public. Energy savingproducts including VVVF drive for lift systems variable, frequency drive for fresh waterpumps, and energy saving lighting systems sensor control for lighting, EV charger are tobe considered.

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Energy Saving Taskforce

Our Energy Saving Taskforce was established in 2002 to monitor energy usage at ourmanaged properties and also to manage and achieve our energy saving target. Our aimis to protect the environment, as well as bring benefits to the occupants such asreduced electricity costs and a more comfortable living environment. The objectives ofthe Taskforce include the following:

• Perform energy saving audits to identify any Energy Management Opportunities (EMOs)

• Organise energy saving training to frontline employees• Review and implement Hong Yip’s energy saving policy • Carry out research and development in energy saving products available

on the market• Update on the latest legal and technical issues on energy saving

Energy Saving Policy

In order to control energy consumption, our Energy Saving Policy focuses onestablishing energy saving processes in five main areas; energy audit, operationalplanning of the building services system, energy saving programme implementation andcommunication, investment in energy saving and promotion to the public. Energy savingproducts including VVVF drive for lift systems variable, frequency drive for fresh waterpumps, and energy saving lighting systems sensor control for lighting, EV charger are tobe considered.

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

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

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

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Waste Management

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

As a property management company, we have the responsibility in encouraging andfacilitating waste reduction, recycling and reuse because the growth of municipal solidwaste from households, industry and commercial operations is putting enormous pressureon the landfills in Hong Kong. By providing effective waste management facilities andactivities, we hope to raise awareness of the importance of environmental protection,enhance the recycling outcome and create a clean and healthy living environment foroccupants. At one of our managed residential estates, La Costa, we have upgraded thedesign and durability of the domestic waste collection facilities to help maximise sourceseparation.

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

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

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

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Water Conservation

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

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The Green Building Concept

Our sustainable effort towards effective property management is demonstrated at theunique locality of Woodland Crest. The green building concept adopted at this190,000 square feet development allows residents to enjoy the natural environmentand a sense of real peace and tranquility. Around the estate, thousands of trees,including many old trees, have been conserved within beautifully landscaped gardens.Inside the estate, the versatile use of natural ventilation, spacious and well-designedinterior, together with an efficient building management programme help to enhancethe green living style of the estate.

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

The Green Building Concept

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Environmental Performance at our Head Office

We consider the reusability of office equipment and stationery when making purchasesand provide internal guidelines via memos to remind employees to save paper, switchoff lights and PCs, etc. We have been installing T5 fluorescent tubes since 2006 at theSHKC and standalone light switches for individual office units since 2007. At the WorldTech Centre, T5 fluorescent tubes were installed during renovation and we executive airquality control four times a year. We also have a set of vehicle management guidelinesthat include environmental considerations during the operation and maintenance ofcompany vehicles.

The Head Office located at the Sun Hung KaiCentre and World Tech Centre, which are certifiedby the World Green Organization under the GreenOffice Awards Labelling Scheme (GOALS). Themain environmental concerns at the offices arewaste management, energy and resource use andair quality control. Current practices includeseparating waste paper, aluminium, plastic, toners,cartridges and batteries for collection by ourassociate company, Nixon Cleaning Co. Ltd. Welaunched the electronic procurement system in2007 at the SHKC to increase workflow efficiencyand promote a paperless system. We alsoencourage contractors to use electronic means forsubmission of contractual documents in order tosave paper and support our Environmental Policy.

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Environmental Performance of our Contractors

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

• Ma On Shan Tree Planting Day• Slogan Design Competition• Pollution free Picnic Day

Did you know?Learning about environmental protection and taking part is fun and rewarding! Our employees took part in a variety of activities, including:

Key challenges ahead

• More widespread implementation of energy saving initiatives to achieve our energy saving target set.

• Continue to promote source separation of waste for recycling at our managed properties and improve our waste data collection system so that we can monitor and evaluate our waste management practices more effectively.

• Educate individual owners and Owners’ Committees about the importance of good IAQ. Given that the IAQ certification scheme is voluntary, it is necessary to seek their acceptance for performing IAQ assessment to achieve certification and approval for the costs involved.

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Responsibility to our Employees

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

Equal OpportunityWe have been refining our Equal OpportunityPolicy from time to time to assure that anyemployee or applicant for employment will notbe discriminated against because of not onlygender, pregnancy, disability, marital andfamily status, age or sexual orientation, butalso race. We will not tolerate discrimination,harassment and offensive behaviour in theworkplace as we believe all employees whohave the right to work in, and also theresponsibility in creating a pleasant andproductive working environment.

Our PrinciplesEmployee HandbookFollowing the issuance of a comprehensive employee handbook for operational staff2007, the one for general staff was introduced in 2008 in order to communicate theCompany’s important messages such as vision, mission and values. It containsinformation on our integrated management system (IMS), employment terms andconditions, employee benefits, training and development, and relevant legislation andCompany policies that every employee should adhere to when carrying out their duties.

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We have employed close to 1,000 re-trained employees referred by social serviceorganizations, which accounts for about 31 % of new hires in 2017. We also partnerwith four local universities and 2 other tertiary institutions in offering work attachmentprogrammes (around 100 internship trainees). In addition, we participated inPathfinding Pavilion of Breakthrough in which students can acquire work-basedlearning experience to prepare for their work upon graduation.

Voice it out

We encourage our employees to raise any work-related grievances and concernsthey might have through various communication channels available: the managers intheir departments, the Human Resources & Administration Department, the annualexecutive review meeting through their representative or directly to the TopManagement including the Chairman. The Internal Audit department will investigateand report on the issues raised as appropriate.

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

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Providing Mentorship

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

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

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Example of Mentorship Programme for frontline employees :

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

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

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

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

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

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Training and Development

Comprehensive and Multi-disciplinary Training

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

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

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

For office-based employees, we provided Centralized Training Programme whichincluded topics like Controversial Issues & Hot topics, Complaints and Crisis casesHandling, etc. Others include the Personal Effectiveness Training Programmecovering topics like Innovation, Time-Management, Conflict Management, etc.

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

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Training and Development

Did You know?

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

Employee category Hours/employee2017 2016

Frontline 26 26Technical 41 40Middle management upwards 43 42

District Instructor Scheme

• To equip all newly joined operational level staff with the required knowledge, skillsand attitude to provide unrivalled excellent services to customers, Hong Yipdeployed District Instructor Scheme from the year end of 2015 to train up qualifiedtrainers.

• Hong Yip had facilitated area’s localized training services, including but not limitedto customer service, complaint handling, security and emergency cases handling,to those new staff as well as for those existing staff by both classroom and on-siterole-play training to replicate and enhance the required knowledge andcompetence in their daily operations.

• Moreover, various cases and experience of frontline staff will be kept at knowledgemanagement platform for training purpose in order to maintain a long-term andcontinuous learning atmosphere.

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Developing Talent

Attracting, retaining and developing elites within Hong Yip and having a comprehensivesuccession management plan are difficult yet vital challenges that we have to deal within the area of organizational management. Therefore, our Talent DevelopmentProgramme aims to carefully select and develop managerial talent from within theCompany to ensure leadership excellence and continuity. Employees are selectedaccording to their performance, longevity, zeal, and managerial competence andpotential.

Talent Development Programme – progress in 2017

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

How long is the Programme? About two years

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

What’s the outcome? Improve communication, leadership and decision-making skills. Gain knowledge in effective team work.Enhance talents’ professionalism and explore the potential of employees

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Did you know?The number of staff in our company who had successfully received Recognition of Prior Learning (RPL) certificates is the largest from any single Company in all the industries with RPL mechanism.

Qualifications Framework (QF)Being the leader in property managementindustry, we shoulder the responsibility forfurther development of the professionalismin the industry and setting up the rolemodel in this respect. As caring company,we continuously nurture talents andencourages staff to life-time learning.Echoing with Government’s introduction ofQF, we submitted our internal courses foraccreditation to Hong Kong Council forAccreditation of Academic and VocationalQualifications (HKCAAVQ) in order to helpour staff to get public recognizedqualifications and articulate to furtherlearning.

The most number of QF-accredited programmes in the industry • 15 QF Programmes were accredited by

HKCAAVQ as at 2017• Content related to “Customer Service”,

“Skills-based”, “Horticulture”, “Work Safety” etc.

Did you know?Being the company in the Property Management industry to achieveaccreditation of internal courses.

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Credit Accumulation and Transfer (CAT)

• We have signed Memorandum of Understanding (MOU) for CAT with differentinstitutions since 2014. We are the first company having signed this kind ofarrangement with Tertiary Institutes in Hong Kong.

• Our staff can apply for recognition of credit previously earned while they areattending programmes in Hong Yip People Development Academy and/or othereducational institutes, if they have completed a recognized QF programme orobtained the "RPL" certificate(s) in our company or other institutions

• At present, over 1,000 staff had successfully applied RPL with QF Level 3 or above.

• We assisted and sponsored our staff to attain RPL qualifications.• Over 2,800 staff had successfully applied RPL Certificate• We are the first company to achieve the most no. of RPL certificates

and with the most no. of staff who applied RPL certificates in all industries.

Recognition of Prior Learning (RPL):

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Our People Development Achievement

We always provide professional training programmes for our employees to improvetheir performance and meet business needs. To strengthen the quality of Training &Development and have our employees’ efforts better recognized by the community, wefrom time to time participate into competitions on training programmes organized bylocal reputable organizations and international association such as Excellence inPractice Award organized by the Association for Talent Development (ATD, formerlyASTD), the Award for Excellence in Training organized by the Hong KongManagement Association (HKMA) and the contest run by Asia Pacific CustomerService Consortium.

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

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

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

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Did you know?ATD (formerly ASTD), established in 1943, is the world’s largestassociation in which members come from more than 100 countries. In2010, there were 178 entrants in which 16 corporations won theExcellence in Practice Awards in different categories. Hong Yip hashonored to be granted the category of “Workplace Learning &Development” to demonstrate the launch of the “Horticultural TrainingProgramme” that can turn the Company’s existing horticultural capabilityinto a competitive strategy. This shows that Hong Yip has attained highstanding of people development in the property management industry.

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

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

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Core Value: Proactive, Dynamic, Learning, Experience

Objectives:

Cultivate first class property management personnel who can contribute to thelong term development of Hong Yip

Train up professional instructors internally to take up teaching tasks for thedevelopment of employees in various aspects

Be the forerunner in the industry to offer industry-recognised approvedprogrammes in property management

Develop a learning organisation through the most optimum use of existing trainingresources

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

The Structure of HYPDA:

The Board of Directors of HYPDA comprises the Vice-Chairman & CEO, the twodirectors and the Head of HR Department.

It is divided into seven training centers with each of them specializes in its owntraining area.

Did you know?Hong Yip is the first company in the industry of Property Management accredited by HKCAAVO to operate QF Programmes from levels 1 to 3

Aim:To provide a comprehensive and holistic approach for the provision of training and development programmes and activities that support the company needs and the personal development of its staff at all levels.

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Occupational Health and Safety

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

We organise an Occupational Safety and Health Annual Seminar with guest speakersfrom the Occupational Safety and Health Council and other government, statutory andprofessional bodies

We organise various internal competitions on promoting Workplace Safety

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

• The health and safety responsibilities of property and facilities management

• Managing the health and safety of our contractors

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

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Safety Improvements

Installation of Fall Protection SystemAt Mei Chung Court, The Seacrest, we introduced ahorizontal lifeline system for workers to prevent fallfrom height while carrying out cleaning work on theroof of covered walkways, building façades andcanopies. The system installed follows the EN795standard and is entirely made of stainless steel,comprising of a horizontal lifeline, rope stretchers andfull-body safety harness. The wire rope goes throughintermediate supports and workers are able to hookand unhook at any location along the horizontal lifeline.

Further enhancement use of “Three SafetyBuddies” when working at heightWorkers who are going to perform work at height isnow enforced to made use of suitable workingplatforms, such as mobile working platforms, stepplatforms and hop-up platforms (commonly known asthe "Three Safety Buddies") Furthermore, to ensuresafety, workers must use full-body harnesses andsecure them on independent lifelines where necessarySafe.

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Ergonomics at the Head Office

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

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Employee Well-Being and Fulfillment

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

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

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Employee Well-Being and Fulfillment

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

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Employee volunteering

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

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Engaging our Employees

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

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

To enable us to compare and benchmark our prevailing practice with other companiesnot only in Hong Kong but also in Asia, we changed our survey strategy by joining theHR Asia Award in 2017 Campaign in which staff opinion survey was included.

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

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

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Key challenges ahead

• Extend and strengthen internal communication channels to promote transparency and understanding in order to deliver high quality customer services.

• Continue to drive our Talent Development Programme and clearly identify career development paths to develop employees internally to support the growth of the Company’s business.

• Organise more social and recreational activities, to address employees’ concerns and needs through different channels so as to retain a happy workforce.

• Maintain the competitiveness of our employee remuneration and benefits plan so that our Company can remain the employer of choice in the industry.

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Responsibility to our Customers

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We have always been committed to providingincomparably high standard of quality services forcustomers and also to build a strong brand ofprofessional services. There are quality monitoringmeasures in place:

• Audit of our services by SHKP• Internal audit of our services• Carry out monthly visits to homes and

commercial premises to gather occupants’opinions on our services

• A 24-hour hotline to handle customer complaintseffectively and on a timely basis

• Mystery customer visits• Tea gatherings where frontline employees meet

with Vice Chairman

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Delivering Service Excellence to our Customers

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

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

Focus Areas of TrainingThe key training areas in the Programme are:

• VIP Hospitality• Customer servicing• Complaint handling• Building management• Value-added home convenience servicing• Emergency/crisis handling• Security measures• Maintenance acquaintance• Cleanliness and hygiene knowledge• Building enhancement, etc

Did you know?Hong Yip won “Hong Kong Top Service Brand Awards”, which is co-organised by the Hong Kong Brand Development Council and the Chinese Manufactures’ Association of Hong Kong.

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Challenges of the Programme

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

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

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Adding Value to Our Portfolio

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

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

hardware and software.

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

• Facelift of building façades;• Refurbishment and upgrading of common areas including entrance lobby, typical

lobbies and corridors;• Maintenance and renovation of staircases;• Maintenance, renovation and management of car parking area;• Enhancement of recreational facilities and clubhouses;• Modernization of E&M systems;• Improvement of landscape/horticulture in the surrounding environment; and• Implementation of innovative and sustainable proposals.

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Outreach to our Customers on Environmental Protection

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

Reuse Food WasteSince 2008, some sites implemented food waste recycling programme. The aim is to collectresidents’ food waste such as vegetables, fruits, meat etc to de-composite via newlyinstalled food waste eliminator to stabilize the organic waste and turn it into useful fertilizerfor irrigation to its plants inside the estate.

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Responsibility to Society

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

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

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

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

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

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

Individual Volunteers90 employees awarded Gold Certificate (200 service hours in a year)35 employees awarded Silver Certificate (100 service hours in a year)47 employees awarded Bronze Certificate (50 service hours in a year)9 employees volunteering services for 15 years

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

Family Volunteering Teams10 family teams awarded Gold Certificate1 family teams awarded Silver Certificate4 family teams awarded Bronze Certificate

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Fundraising ActivitiesFlag Days/Fundraising walkathons/marathons/ climbathon

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

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Peace box Campaign - Sharing your bliss with the needy!

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

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Peace box Campaign

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

Organisations benefited:

• Street Sleepers’ Shelter Society TrusteesIncorporated

• Against Child Abuse (Tuen Mun & Wong TaiSin)

• ELCHK Intergrated Youth Service Centre(Tseung Kwan O)

• Hong Kong Women Workers’ AssociationSociety for Community Organisation

• New Women Arrival• Yan Kwong Social Service Centre• Love & Care for the Sick Foundation Ltd.

• S. K. H. St. Christopher's Home• HKSKH Church of the Ascension• Hong Kong Yan Kwong Bethel• Kwai Chung New Life Temple• Neighbourhood Crae Foundation Ltd. - The

Praise Assembly (Tsuen Wan)• Hong Kong Evangelical Yan Tin Church• Hong Kong Baptist Church Good Neighbour

Chapel• etc.

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

8,440 (2014) > 8,000

7,592 (2015) > 7,000

8,110 (2016) > 8,000

10,710 (2017) > 10,000

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Ethical Consumption「良心消費」

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

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SoLeisure「閒。舍。區」

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

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Children Mentoring Programme

Collaborating with The Neighbourhood Advice-ActionCouncil’s Tung Chung Integrated Services Centre, ourvolunteers served 100 children aged between 5 and14 in a ‘Children Mentoring Programme’ whichconsists of a variety of life enriching activities andeducational visits/events. The aim is for the volunteersto adopt the role of a mentor to the children and helpthem to look beyond their financial/physical conditions,build self-confidence to face difficulties positively, anddevelop personal goals for the future.

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

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

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‘Leading Caring Estate’ & ‘Caring Estate’ logos

Royal Peninsula Manhattan Hill The Seacrest

Pristine Villa On Ning Garden Parc Oasis Phase II

Prima Villa Beneville Mei Chung Court

Oscar By The Sea Tak Tin Estate Baycrest

Botania Villa Parc Oasis Phase III Harbour Place

Ming Nga Court Sham Wan Towers

Forest Hill Parc Royale

Fortune Garden Park Central (Residential)

The Parcville Serenade Cove

Grand Del Sol

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Caring for the ElderlyBuilding Homes and Caring Neighbours with Heart –Redevelopment of Estates

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

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

In 2017, Through the joint hands with Tung TauSocial Service Team of The Neighbourhood AdviceAction Council, we assist about 120 elderlyhouseholds of Tung Tau Estate in the selection andinspection of their new homes, as well as performinggeneral renovation works to help them settle inquickly and easily.

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Improving LivelihoodsSupport Unemployed through Employees Retraining Scheme

As early in 1996, Hong Yip has actively partnered with non-profitorganizations in helping the unemployed to enhance their employabilitythrough providing them with practical work experience in different jobcategories of our Company.

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

With the repositioning of ERB to bring its function to fullplay in late 2007, ERB has revamped the EmployeesPlatinum/Gold Star Award as “ERB ManpowerDevelopment Scheme Award ”in 2008. Since then, HongYip awarded the highest honour of “ERB ExcellenceAward for Employers in the ERB Manpower DevelopmentScheme” for 9 times to commend our active participationin its Manpower Development Scheme by employingERB trainees, promoting ERB services to the public,caring for their staff and providing career developmentopportunities for trainees.

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Support our Youth

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

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

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

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

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

Entitlement Company/Building15 Years Plus Logo Hong Yip Service Co Ltd

10 Years Plus Logo Nixon Cleaning Co. Ltd.Nicole Environmental Services Co. LtdRoyal Peninsula

5 Years Plus Logo Lik Kai Engineering Co. Ltd.

Caring Company Logo Superpower Pumping Engineering Co. Ltd.Lik On Security Ltd.Home Convenience Service Co. Ltd.Home Laundry Service Co., Ltd.Vigor Industrial BuildingHarbour PlaceEpoch Industrial BuildingKwai Shun Ind CentreKwai Sing CentreWah Sing Industrial BuildingPo Sing CentreMaison Platinum Service Company Limited

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

Email: hongyip@hongyip.com

Address:Hong Yip Service Company Limited16/F, World Tech Centre,95 How Ming Street,Kwun Tong,Hong Kong

Website: http://www.hongyip.com

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

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