Environmental, Social and Governance Report 2025

Microware Group Limited

(incorporated in the Cayman Islands with limited liability)

Stock Code: 1985

2025

ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

Scope and Reporting Period 3

Stakeholder Engagement and Materiality 3

Stakeholders' Feedback 5

The Group's ESG Commitment 5

Recognitions, Certifications, and Memberships 6

A. Environmental 8

A1. Emissions 9

A1.1 Air Emissions 9

A1.2 GHG Emissions 9

A1.3. Hazardous Waste 10

A1.4. Non-hazardous Waste 10

A1.5. Measures to Mitigate Emissions 11

A1.6. Waste Management 11

A2. Use of Resources 14

A2.1. Energy Consumption 14

A2.2. Water Consumption 15

A2.3. Energy Use Efficiency Initiatives 15

A2.4. Water Use Efficiency Initiatives 16

A2.5. Packaging Materials 16

A3. The Environment and Natural Resources 16

A3.1. Significant Impacts of Activities on the Environment 16

A4. Climate Change 16

A4.1 Climate Change Governance 16

A4.2 Climate Risk Identification 17

A4.3 Anticipated Financial Impacts 19

A4.4 Climate Change Scenarios 19

A4.5 Commitment to a Sustainable Transition 20

Environmental, Social and Governance Report 2025 01

02 Microware Group Limited

Microware Group Limited (hereinafter referred as the "Company", and together with its subsidiaries referred as the "Group") is pleased to publish the Environmental, Social, and Governance (the "ESG") report, highlighting its ESG performance, with disclosure reference made to the ESG Reporting Guide as described in Appendix C2 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Stock Exchange"). The disclosure in this report complies with the mandatory disclosure requirements and the "comply or explain" provisions as set out in the ESG Reporting Guide.

The principal activity of the Group is the provision of IT infrastructure solution services and IT managed services in Hong Kong. It advises clients on their IT systems, delivers, and/or installs and implements IT infrastructure solutions with the hardware and software purchased from several manufacturers or authorised distributors for its clients.

This ESG report covers the Group's environmental and social performance for its business operations in Hong Kong from 1 April 2024 to 31 March 2025 (the "Reporting Period"), unless stated otherwise. During the Reporting Period, its operations were divided into the Head Office and a Service Centre & Warehouse, both located in Kwun Tong, Hong Kong. The total floor area of the office is 4,256.63 m². Other operations that did not have significant environmental or social impacts have been excluded from the reporting scope.

The Group recognises the importance of considering its people, the environment, and the community in its business operations to achieve sustainable development. We uphold high ethical standards and are dedicated to engaging our stakeholders while conducting business fairly, responsibly, and transparently.

To manage stakeholder satisfaction, the Group holds regular meetings and maintains a comprehensive list of stakeholders, including customers, suppliers, and regulatory bodies, which is reviewed semi-annually.

• Quarterly Interim Service Meetings: These meetings focus on service performance, business environment discussions, new or changed service requirements, and other service-related issues.

• Annual Service Review Meetings: These meetings address any changes to service scope and stakeholders' evolving business needs.

During the Reporting Period, the Group conducted a survey among stakeholders, including Directors, senior management, frontline employees, shareholders, suppliers, and customers. This survey aimed to gather insights into their concerns regarding the Group's operations.

The results, highlighting the topics of concern and their respective levels of materiality, are presented in the matrix below.

Environmental, Social and Governance Report 2025 03

HIGHER

Materiality of Different Topics from Stakeholder Engagement

LOWER

HIGHER

Internal Assessment on Importance to Business

Importance to Stakeholders

LOWER

Environmental Social

04 Microware Group Limited

As indicated by the materiality assessment, topics on the social aspects are viewed as of higher importance in stakeholders' perspectives. The top 6 material topics are:

1. Employment

2. Occupational Health and Safety

3. Labour Standards

4. Data Protection

5. Product/Service Quality

6. Anti-corruption

In this Reporting Period, the material topics of the Group reflect a continued commitment to social responsibility, with a notable focus on Employment, Occupational Health and Safety, and Labour Standards. Compared to 2023/24 (the "Last Reporting Period"), where the primary topics included Anti-corruption, Intellectual Property Rights, and Customer Service, the current year emphasises Employment as a key concern, indicating a shift towards prioritising workforce-related issues. While Occupational Health and Safety, Labour Standards, Data Protection, and Product/Service Quality remain consistently relevant across both periods, the repositioning of Anti-corruption from the top of the list to the last position suggests a strategic refinement in addressing social impacts. Overall, the transition highlights the Group's responsiveness to evolving stakeholder expectations and a deeper focus on fostering a supportive and safe work environment.

The Group has established policies to address these issues, which will be discussed in this report. We remain committed to engaging our stakeholders and will continuously review our policies to mitigate any potential challenges to the Group's sustained development.

The report can be accessed and downloaded from the Company's website at https://www.microware1985.com/ or on the website of the Stock Exchange at https://www.hkexnews.hk. The Group welcomes stakeholders' feedback on its environmental, social and governance approach and performance. Please give your suggestions or share your views with the Group via email at ir@microware1985.com.hk or by phone at (852)2565 3088.

Board Oversight: The board (the "Board") of directors (the "Directors") of the Company has overall responsibility for the Group's sustainability strategy and reporting. They guide management in developing and implementing effective sustainability policies, track progress, and review sustainability matters quarterly. An independent consultant provides expert counsel.

Key Performance Indicators: The Board identifies key environmental and social performance indicators, sets targets based on business conditions, and reviews ESG progress to facilitate business growth and create long-term stakeholder value. ESG issues are regularly discussed at Board meetings and communicated to stakeholders in the annual sustainability report. We continuously monitor and strive to improve our ESG performance, focusing on reducing energy and water consumption, minimising waste, and enhancing social performance.

ESG Commitment: The Group is dedicated to achieving a green vision and raising employee environmental awareness for carbon reduction. We integrate environmental management into business processes and continuously improve environmental performance in line with local regulations and industry guidelines.

Environmental, Social and Governance Report 2025 05

Environmental Strategies:

1. Comply strictly with all applicable environmental laws and regulations.

2. Conserve resources through reuse and recycling.

3. Minimise waste generation and dispose of waste responsibly.

4. Reduce energy consumption and improve energy efficiency.

5. Prevent and control environmental pollution, encouraging suppliers and contractors to adopt similar measures.

6. Communicate environmental best practices.

7. Encourage employee participation in environmental initiatives.

Social Strategies:

1. Organise end-user seminars to share expertise and promote solutions, boosting sales.

2. Sponsor and participate in industry exhibitions to demonstrate leadership and corporate responsibility.

3. Attend overseas training and summits to enhance vendor relationships.

Recognitions, Certifications, and Memberships

The Group's commitment to providing high-quality services and products, coupled with its industry leadership, has been recognised through the following awards and accolades received during the Reporting Period.

06 Microware Group Limited

Certifications

As evidence of our commitment to accountability and continuous improvement, the Group has earned and maintains the following certifications, which are subject to annual review:

• ISO/IEC 20000-1:2018 for the IT Service Management System that supports the provision of hardware maintenance services to its external customers by Microware Limited.

• ISO/IEC 27001:2013 for the Information Security Management Systems supports the provision of hardware maintenance services, assessed following Statement of Applicability v2.2.

Membership

The Group holds corporate memberships of the Hong Kong Computer Society and Hong Kong General Chamber of Commerce. The Group is also a highly trusted partner for various multinational corporations, such as Adobe Systems, DellEMC, HP Inc, Lenovo, Microsoft, Nutanix, VMWare etc., having qualified for a range of professional specialism. They include network security, wireless LAN, storage solutions, cloud solutions, data analytics, management operations, sales, post-sales services, etc.

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1. ENVIRONMENTAL

   The Group is committed to promoting long-term sustainability for both the environment and the surrounding community. To achieve this, it ensures compliance with environmental protection laws and regulations, including the Environmental Impact Assessment Ordinance and the Waste Disposal Ordinance.

   During the Reporting Period, no instances of non-compliance with relevant laws and regulations were identified that significantly impact the Group concerning air and greenhouse gas (GHG) emissions, discharges into water and land, or the generation of hazardous and non-hazardous waste.

   The Group is committed to environmental stewardship through the implementation of Environmental Protection Policies that promote carbon and waste reduction awareness among employees. We actively foster an environmentally friendly workplace and a recycling culture based on the principles of Reduce, Reuse, and Recycle.

   Given the nature of our business (IT Infrastructure Solutions), our operations are not considered a major source of environmental pollution, and our environmental impact is deemed minimal. Furthermore, as discussed in the "Stakeholder Engagement and Materiality" section of this report, environmental aspects were not identified as material concerns by our stakeholders.

   The Group has established targets to limit increases in intensities of greenhouse gases (GHG) emissions, energy consumption, water consumption, and waste production to no more than 5%, using 2021/22 as the baseline year.

   Overview of the Environmental Targets Progress

   Aspect	Baseline 2021/22	Performance 2024/25	Progress
   GHG emissions			in intensity in tCO2e/ employee
   Non-hazardous Waste			employee
   Energy consumption			employee
   Water			employee

   • 1.18 tCO2e/m²

   • 0.07 tCO2e/employee

   • 1.04 tCO2e/m²

   • 0.06 tonne CO2e/ employee

   • Decreased 12% for the intensity in tCO2e/m²

   • No significant change

   • 0.58 kg/m²

   • 10.4 kg/employee

   • 0.36 kg/m²

   • 6.33 kg/employee

   • Decreased by 38% for the intensity in kg/m²

   • Decreased by 39% for the intensity in kg/

   • 164.33 kWh/m²

   • 2,962.27 kWh/employee

   • 141.69 kWh/m²

   • 2,492.29 kWh/employee

   • Decreased by 14% for the intensity in kWh/m²

   • Decreased by 16% for the intensity in kWh/

   • 0.52 m³/m²

   • 9.34 m³/employee

   • 0.11 m³/m²

   • 1.90 m³/employee

   • Decreased by 79% for the intensity in m³/m²

   • Decreased by 80% for the intensity in m³/

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   A1. Emissions

   A1.1 Air Emissions

   The Group has not involved in the consumption of fuel that contributes to significant emissions of non-GHG air emissions.

   A1.2 GHG Emissions

   During the Reporting Period, a total of 250.68 tonnes of carbon dioxide equivalent (tCO2e) GHG, mainly carbon dioxide, methane, and nitrous oxide, were emitted due to the Group's operation. The annual emission intensity was 0.06 tCO2e/m2 and 1.04 tCO2e/employee. See the following table for the breakdown of GHG emissions during the Reporting Period and Figure 1 for a three-year comparison of the emissions.

   Greenhouse Gas Emissions 2024/25

   Scope of GHG Emissions Emission Sources

   Emission (tCO2e)

   Total Emission Percentage

   Scope 1 Direct Emission N/A N/A N/A

   Scope 2 Energy Indirect Emission

   Purchased electricity 235.23 94%

   Scope 3 Other Indirect Emission

   Wastepaper disposal at landfills

   Electricity used for freshwater processing

   Electricity used for sewage processing

   Business air travel by employees

   7.35 6%

   0.20

   0.10

   7.80

   TOTAL 250.68 100%

   Note: Emission factors were made by reference to Appendix C2 to the Listing Rules and their referred documentation as set out by the Stock Exchange unless stated otherwise.

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   350.00

   300.00

   250.00

   3.00

   302.78

   263.23

   260.06

   250.68

   2.50

   2.00

   200.00

   1.50

   150.00

   100.00

   50.00

   0.00

   1.18

   1.07

   1.02

   1.04 1.00

   0.50

   0.07

   2021/22

   0.06

   2022/23

   0.06

   2023/24

   0.06

   2024/25

   0.00

   Reporting Period

   Total Amount of GHG emissions tonne CO2e/m2 tonne CO2e/employee

   
   
   

   tonne CO2e

   Intensity (tonne CO2e/unit)

   Figure 1 Greenhouse Gas Emissions from 2021/22 to 2024/25

   We are pleased to report a 12% decrease in GHG emissions intensity per employee compared to the 2021/22 reporting period. While the emissions intensity per square meter of the Group's floor area remained relatively stable, we are committed to ongoing monitoring of our emissions levels and sources.

   A1.3. Hazardous Waste

   During the Reporting Period, a total of 2,781 kg of hazardous waste were generated by the Group, which included 844 kg of batteries and 1,937 kg of computer hardware including computers and printer cartridges. The intensity of hazardous waste generated was 0.65 kg/m2, or 11.49 kg/employee. There was an increase in the overall hazardous waste of the Group due to the increase in sales of related products.

   A1.4. Non-hazardous Waste

   During the Reporting Period, paper was the Group's major source of non-hazardous waste. A total of 1,532 kg of wastepaper, with an intensity of 0.36 kg/m2, or 6.33 kg/employee, was generated during the Reporting Period.

   Target	Baseline 2021/22	Performance 2024/25	Progress
   No more than 5% increase in non-hazardous waste intensity

   • 0.58 kg/m2

   • 10.4 kg/employee

   • 0.36 kg/m²

   • 6.33 kg/employee

   • Decreased by 38%

   • Decreased by 39%

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   A1.5. Measures to Mitigate Emissions

   The overall emissions, energy and water consumption mainly come from the use of resources in the daily routine of offices. To reduce carbon emissions induced by the Group's operations, the Group implemented carbon reduction measures and initiatives to encourage employees to develop an environmentally friendly working routine:

   • Employee utilising video conference calls, and recruitment interviews, online meetings and training sessions to avoid air travel needs;

   • Working with suppliers who have implemented environmental policies such that its emissions induced indirectly can be controlled;

   • Reducing waste generation for the reduction of emissions incurred from waste treatment; and

   • Carrying out multiple energy-saving practices as described in Section A2.3.

   A1.6. Waste Management

   Waste Handling

   The Group is committed to responsible waste management practices to minimize environmental risks associated with our operations. Our approach encompasses both hazardous and non-hazardous waste streams, with a focus on recycling and proper disposal.

   Electronic Waste Recycling:

   We actively facilitate the recycling of regulated electrical and electronic equipment from our customers, transforming waste into valuable resources. Our process adheres to the following steps:

   1. Customer Notification: We inform customers in writing about the availability of statutory removal services and associated terms.

   2. Free Removal Service: Upon request, we arrange for free statutory removal services to collect old equipment.

   3. Recycling Labeling: We provide customers with appropriate recycling labels for the equipment.

   4. Receipt Provision: Customers receive a receipt with the prescribed wording, informing them about the recycling levy payable by the registered supplier.

   5. Record Keeping: We maintain records of all requests for statutory removal services for future review and auditing purposes.

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   IT Equipment Processing:

   IT equipment collected from customers undergoes a rigorous process:

   1. Sorting and Data Sanitization: Equipment is categorized as either usable or unusable after being recorded. Data is securely erased and degaussed to protect sensitive information.

   2. Component Reuse and Repair: Usable components are sent to our workshop for repair and refurbishment.

   3. Responsible Dismantling: Unusable components are sent to subcontractors for dismantling. Functional parts are salvaged and integrated into computer equipment for reuse.

   4. Certified Disposal: Unusable and unsalvageable parts are collected by licensed collectors holding ISO 14001 certification, ensuring proper and environmentally sound disposal.

      Other Waste Streams:

      • Toner Cartridges: Whenever feasible, used toner cartridges are sent to specialists for recycling.

      • Non-Hazardous Office Waste: Non-hazardous waste generated from office operations is regularly collected by the property management companies of our respective office buildings.

      • Confidential Documents: Documents and paperwork containing confidential information are collected by a licensed recycler for secure and careful treatment.

        Waste Reduction Initiatives

        The Group actively promotes waste reduction through a comprehensive "Reduce, Reuse, Recycle" program, designed to raise employee awareness and minimise the generation of both hazardous and non-hazardous waste. Our paperless office and waste reduction initiatives include:

      • Furniture Redeployment: Prioritising the redeployment of usable office. Furniture is only disposed of when it is no longer functional or suitable for use.

      • Stationery Reuse Program: Establishing an internal reuse area where employees can access and share used stationery items such as binders, punchers, and file folders.

      • E-Administration Implementation: Deploying electronic platforms for various administrative processes, to significantly reduce paper consumption.

      • Double-Sided Printing & Paper Reuse: Setting double-sided printing as the default mode and encouraging employees to reuse single-sided paper for drafting purposes.

      • Digital Greetings: Utilizing e-cards for festival greetings to eliminate paper card usage.

      • Packaging Material Reuse: Encouraging on-site engineers to reuse or recycle packaging materials for parts delivery after maintenance activities.

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   • Paper-Saving Procurement: Implementing a new Purchase Order (PO) system in 2021 featuring electronic company chop and PO approval functions. This system enables electronic access to PDF documents, resulting in reduced paper printing and storage. The Group estimates a saving of approximately 11,000 pages of paper since the system's adoption.

   • Recycling Programs: Partnering with licensed recyclers for the collection and recycling of paper and computer components (collected by a licensed collector with ISO 14001 certification).

   • Toner Cartridge Recycling: Recycling used toner cartridges through specialized recycling programs.

   • Reusable Tableware Promotion: Reminding staff to use their own cups and cutlery to minimize the use of disposable tableware.

   • Food Waste Reduction: Actively promoting practices to reduce food waste.

   The Group's commitment to reduce e-waste is recognised by the ALBA IWS, awarded with the Appreciation Award - "E-waste Management and Partnership".

   
   
   

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   A2. Use of Resources

   A2.1. Energy Consumption

   The only source of energy for the Group was electricity during the Reporting Period. Consumption of energy was 603.13 MWh, with an energy intensity of 141.69 kWh/m2 or 2,492.29 kWh/employee. Compared to 2021/22, the energy consumption intensity per m2 and per employee were decreased by 14% and 16%, respectively.

   1000

   900

   4000

   3500

   800

   700

   600

   500

   400

   300

   200

   100

   0

   2,627.63

   2,516.08

   2,492.29

   3000

   2500

   646.40

   639.09

   603.13

   139.52

   142.17

   2000

   1500

   1000

   141.69 500

   0

   2021/22

   2022/23

   Reporting Period

   2023/24

   Total electricity consumption kWh/m2 kWh/employee

   
   
   

   MWh (thousands)

   Intensity (kWh/unit)

   Figure 2 Electricity Consumption from 2021/22 to 2024/25

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   A2.2. Water Consumption

   Water consumption of the Group during the Reporting Period was 460 m3 with water intensity of 0.11 m3/m2 or 1.90 m3/employee. There were no issues in souring fresh water. Compared to 2021/22, the water consumption intensity per m2 and per employee were decreased by 79% and 80%, respectively. The significant decreased was attributed to the removal of the Wanchai Office from the reporting scope after the Last Reporting Period.

   2500

   8.01

   2000

   1,970

   1500

   1000

   9.00

   8.00

   7.00

   6.00

   5.00

   4.00

   2.09

   500

   1.90

   0.43

   531

   0.12

   460

   0

   3.00

   2.00

   1.00

   0.11

   0.00

   2022/23

   2023/24

   Reporting Period

   2024/25

   Total water consumption m3/m2 m3/employee

   
   
   

   m3

   Intensity (m3/unit)

   Figure 3 Water Consumption from 2021/22 to 2024/25

   A2.3. Energy Use Efficiency Initiatives

   The Group encourages employees to reduce electricity consumption and has implemented the following initiatives:

   • Using energy-efficient lighting (e.g. LED tubes, T5 fluorescent tubes and parabolic reflectors);

   • Using electronic appliances with Grade 1 energy labels;

   • Using all-in-one multi-functional devices that minimise power consumption and carbon footprint;

   • Setting computer monitors to enter sleeping mode when idled over 5 minutes;

   • Reminding employees to turn off unnecessary lighting, electronic appliances, and devices via sending messages before holidays and posting prompts next to light switches; and

   • Turning off lights, air-conditioners, and other electronic equipment during non-office hours, and Prompts are posted next to light switches that remind people to turn off the lights when they exit a room.

   Environmental, Social and Governance Report 2025 15

   
   
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   A2.4. Water Use Efficiency Initiatives

   The Group is committed to water conservation through the implementation of practical measures within our facilities. We have installed automatic urinal sensors and faucet water savers with Grade 1 water efficiency labels to minimise water wastage. We also encourage our staff on water conservation best practices, such as reporting leaks and using water responsibly.

   A2.5. Packaging Materials

   Due to the business nature of the Group as a service provider, it does not require any packaging materials for its products. While its services may often involve computer parts and items that are wrapped in protective materials, its engineers are reminded to reuse these materials for delivery or recycling.

   A3. The Environment and Natural Resources

   A3.1. Significant Impacts of Activities on the Environment

   Our office-based operations primarily impact the environment through electricity consumption, freshwater processing, paper waste, and hazardous waste from computer hardware and batteries.

   While we recognise that the IT infrastructure solutions industry has a relatively low environmental impact, the Group is committed to minimising our footprint. We adhere to an environmental protection policy emphasising "Reduce, Reuse, and Recycle" to optimize resource utilisation. We actively promote environmental awareness among employees, focusing on carbon and waste reduction.

   A4. Climate Change

   A4.1 Climate Change Governance

   The Board focuses on managing the risks brought by climate change, integrating ESG, including climate-related issues into the corporate governance process, improving board-level supervision, and leading the management to cope with the climate risk in the existing business processes and the impact on the Group's overall strategy. The climate-related risks management has been integrated into the Group's risk management system. The Board has the responsibility to monitor the effectiveness of its climate-related risks management, discuss, report and formulate related measures within the risk management process, such as the Board meetings, and formulate emergency plans according to the risks identified in order to strengthen its ability to cope with the negative impacts brought from extreme weather emergency conditions. The Group strives to ensure normal production and operations, and maintain the safety of public security and employees' life and property. For detailed information about the ESG governance of the Group, please refer to "The Group's ESG Commitment" section.

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   A4.2 Climate Risk Identification

   In alignment with the recommendations from the Task Force on Climate-related Financial Disclosures (TCFD), climate-related risks are classified into two primary categories: physical risks and transition risks. The Group has conducted a thorough analysis to identify various climate-related risks that could impact its business operations. These include acute physical risks, chronic physical risks, legal and policy risks, technology risks, and reputational risks.

   To assess the potential effects of these climate-related risks on its value chain, the Group has evaluated the likelihood and severity of each risk. This assessment enables the Group to gauge the level of risk associated with each identified climate-related concern.

   By proactively identifying and managing these climate-related risks, the Group seeks to protect its business operations and bolster its resilience against climate change. This strategy ensures that the Group is well-equipped to handle the challenges posed by climate-related disruptions, thereby supporting the long-term sustainability of its operations.

   Time Span	Years	Definition
   Short-term	1-5	Covers the period during which the Group faces severe and rapidly emerging climate risks. The focus of short-term strategies is to address the most urgent threats and implement gradual recovery measures.
   Medium-term	5-10	During this period, the Group must organize and consolidate its short-term climate risk management, creating a deeper impact across its business operations and value chain.
   Long-term	10 or more	This period extends to the long-term, systemic impacts of climate change that the Group must address. Structural changes can be made in the long run to mitigate and adapt to profound climate effects.

   An ESG risk assessment was conducted based on assessing the possibility and impact of each identified risk into three levels: high, medium and low.

   Risk levels Definition of the overall risk levels

   High Risks at this level may have serious consequences. There will highly likely be some impacts on the Group and hindrances for the Group to achieve strategic goals.

   Medium Risks at this level may have serious consequences, but they are less likely to occur. Conversely, the consequences could be minor in nature, but the probability of occurrence is higher.

   Low Risks at this level have limited harm and consequences for the Group to achieve its strategic goals, and the probability of occurrence is low.

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   Climate risk type Time horizon Potential Financial Impact Risk level

   Physical Risk

   Acute physical risk Short term Extreme weather events, such as

   typhoons, storm surges and rainstorms, may cause physical damage to infrastructure and operations, and failure of technology and equipment incur costs on recovery and repair.

   Recovery and repair can take months or even years.

   High

   Chronic physical risk Medium to long

   term

   Rising temperatures increase energy use and equipment maintenance costs.

   High

   Transition risk

   Technology risk Long term Increased operation cost from

   substitution of existing equipment and services.

   Reputation risk Long term The change in customer or user

   preferences may increase the chance of receiving negative stakeholder feedback about the existing IT services. It may affect the reputation of the Group.

   Medium

   Low

   Climate change

   opportunity Time horizon Potential Financial Impact

   Impact level

   Market Expansion

   Expansion of service offerings

   Short term • With the progress of IT solution

   systems and infrastructure in the future, more jobs can be replaced by using electronic systems and electronic files instead of using paper.

   • Also, it is believed that the progress of the new IT system and infrastructure designs can be more energy-efficient, so the Group can grasp this opportunity to become an environmentally friendly IT enterprise in the future.

   High

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   A4.3 Anticipated Financial Impacts

   The Group recognises that climate-related risks may impact its financial position. Extreme heat events have affected operational consumption metrics and led to increased costs within the supply chain, diminishing production efficiency and cost control, which in turn lowered financial performance. Additionally, cash flow has decreased due to the need for increased investments to address climate risks and maintain business operations.

   In light of the Group's strategies for managing climate-related risks and opportunities, we anticipate changes in financial performance over the short, medium, and long term. The Group plans to intensify its control measures and investments aimed at improving energy efficiency and reducing carbon emissions.

   A4.4 Climate Change Scenarios

   The Group has analysed the major impacts that the Information Technology (IT) industry may encounter under the climate scenarios suggested by the HKEX1.

   Climate Scenario

   Global Average

   Temperature Increase Major Impacts

   Turquoise Projected to rise approximately

   1.7°C by 2060 and approximately 1.8°C by 2100

   Brown Projected to rise approximately

   2.4°C by 2060 and approximately 4.4°C by 2100

   • Increased demand for eco-friendly and low carbon services and products

   • Growth in the market for sustainable packaging solutions

   • Enhanced focus on circular economy practices

   • Heightened risk of regulatory noncompliance leading to financial penalties

   • Disruption of supply chains due to extreme weather events

   • Increased operational costs associated with carbon pricing and regulatory compliance

   1 HKEX. (2021). Guidance on climate disclosures. Hong Kong Exchanges and Clearing Limited. https://www.hkex.com.hk/-/media/HKEX-Market/Listing/Rules-and-Guidance/Environmental-Social-and-Governance/ Exchanges-guidance-materials-on-ESG/guidance_climate_disclosures_c.pdf

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   A4.5 Commitment to a Sustainable Transition

   The Group's operations in Hong Kong support the goal of achieving carbon neutrality by 2050, in accordance with the "Hong Kong Climate Action Blueprint 2050." For more details, please refer to the section "Measures to Mitigate Emissions" of the report.

   Due to the Group's office-based operation, we consider that our risk under climate change is relatively low. Currently, the Group does not utilize carbon credits or internal carbon pricing (ICP) or climate-related considerations into its remuneration policy. However, by continuing to invest in sustainable technologies and services, the Group aims to reduce long-term operational costs and enhance market competitiveness, gradually mitigate with the climate change related financial risks in the coming years.

2. SOCIAL

   1. Employment and Labour Practices

B1. Employment

B1.1 Employment Figures

The Group had a total number of 242 employees as of 31 March 2025, all of which were from Hong Kong. In general, the distribution of the Group's workforce has remained similar throughout the years. See Figures 4-7 for the compositions of employees by categories.

20 Microware Group Limited

Workforce by Employment Type

Full Time Part Time

Figure 4 Workforce by Employee Type from 2022/23 to 2024/25

Workforce by Employee Category

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

2022/23

2023/24

2024/25

Senior Management Middle Management Frontline & Other Staff

Figure 5 Workforce by Employee Category from 2022/23 to 2024/25

Environmental, Social and Governance Report 2025 21

Workforce by Age

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

2022/23

2023/24

2024/25

18-25 26-35 36-45 46-55 56 or above

Figure 6 Workforce by Age from 2022/23 to 2024/25

Workforce by Gender

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

2022/23

2023/24

2024/25

Male Female

Figure 7 Workforce by Gender from 2022/23 to 2024/25

22 Microware Group Limited

B1.2 Turnover

During the Reporting Period, a total of 52 employees left the Group, contributing to a turnover rate of 22%. In general, the proportion of employees who left the Group during the Reporting Period was similar with that of the Last Reporting Period.

0%

2022/23

Full Time

2023/24 2024/25

Part Time Average Turnover

Figure 8 Turnover Rate by Employee Type from 2022/23 to 2024/25

Figure 9 Turnover Rate by Employee Category from 2022/23 to 2024/25

35%

30%

25%

33.3%

30.1%

27.8%

20%

21.8%

22.0%

20.9%

15%

10%

21.7%

21.5%

21.6%

21.4%

5%

0%

0.0%

2022/23

0.0%

2023/24

2024/25

Average Turnover Full Time

Middle Management Frontline & Other Staff

Environmental, Social and Governance Report 2025 23

Figure 10 Turnover Rate by Employee Age from 2022/23 to 2024/25

80%

70%

60%

50%

40%

30%

20%

10%

0%

73.3%

53.8%

45.3%

30.1%

28.0%

32.0% 22.4%

22.0%

42.9%

36.8%

19.7%

21.5%

14.3%

21.5%

21.3%

13.3%

9.2%

0.0%

2022/23

Average Turnover 36-45

2023/24

18-25

46-55

2024/25

26-35

56 or above

Figure 11 Turnover Rate by Gender from 2022/23 to 2024/25

50%

45%

40%

35%

30%

25%

20%

15%

10%

5%

0%

45.8%

30.1%

30.1%

30.4%

31.9%

22.0%

18.1%

21.5%

11.2%

2022/23 2023/24 2024/25

Average Turnover Male Female

24 Microware Group Limited

B1.3 Employment Policies

The Group is committed to fostering a positive and equitable work environment for all employees. This commitment is reflected in its policies regarding employee benefits, equal opportunity, and employee relations.

Employee Benefits and Welfare

The Group recruits employees from the open market and establishes fair terms of employment, including standard working hours and termination procedures, within employment contracts. The Group offers competitive remuneration packages that include:

• Medical insurance

• Travel insurance

• Employees' compensation insurance

• Housing allowances (approved on a case-by-case basis by the Chief Executive Officer)

• Defined contribution to the Mandatory Provident Fund (MPF) as required under the Mandatory Provident Fund Schemes Ordinance (Cap. 485) for eligible employees

• Various types of leave including annual, sick, maternity, and paternity leave, in accordance with the Employment Ordinance (Cap. 57) and other relevant legislation

• Compassionate leave and two days of marriage leave

• Education subsidy program and children's education allowance

• Medical check program

• Opportunity to purchase the Group's products at special prices (upon approval)

Salary ranges for each employee grade are determined and approved by the Directors based on principles of fairness, ability, competitiveness, and timeliness. Overall employee salaries are reviewed annually based on performance evaluations approved by departmental directors and the Chief Executive Officer.

During the Reporting Period, the Group observed no material non-compliance with laws and regulations regarding compensation and dismissal, recruitment and promotion, working hours, rest periods, and other benefits and welfare.

Environmental, Social and Governance Report 2025 25

Equal Opportunity and Fair Treatment

The Group is an equal opportunity employer and emphasises a fair, open, objective, and non-discriminatory selection process in its recruitment, promotion, transfer, and other business activities. Eligibility is assessed based on job-related attributes such as qualifications, knowledge, work experience, skills, and competency. The Group prohibits discrimination based on race, gender, religion, age, disability, nationality, family status, or any other protected characteristic.

The Group is committed to creating a safe work environment free from discrimination and sexual harassment, where all employees are treated with dignity, courtesy, and respect. The Group's Anti-Discrimination Policy, which applies to all employees and their work-related interactions, explicitly prohibits and condemns any acts of discrimination and sexual harassment. This policy is outlined in the Group's Staff Handbook. The Group complies with the Hong Kong Bill of Rights Ordinance (Cap. 383), the Sex Discrimination Ordinance (Cap. 480), Disability Discrimination Ordinance (Cap. 487), Family Status Discrimination Ordinance (Cap. 527), and the Race Discrimination Ordinance (Cap. 602).

Employees who believe they have been subjected to or witnessed actions that violate the Anti-discrimination Policy are required to report the matter promptly to management. Management will investigate all reports of alleged violations and take appropriate corrective action. Employees who feel sexually harassed are encouraged to report the incident to their supervisor and the Head of Personnel. The Company will evaluate the relevant facts and circumstances and provide appropriate advice. Harassment complaints are handled seriously and reported to the Equal Opportunities Commission immediately, as sexual harassment is a civil offense under the Sex Discrimination Ordinance.

Employee Relations

The Group fosters positive employee relations through performance appraisals, fair disciplinary procedures, and opportunities for career development.

Annual performance appraisals are conducted to evaluate employee performance and strengthen mutual understanding between employees and the Group. These appraisals provide a basis for personnel decisions, including confirmation of employment, salary adjustments, bonus allocation, promotion, transfer, job rotation, and training opportunities. Employee performance is assessed through self-assessment, supervisor assessment, and interactive communication.

A dismissal procedure is in place to ensure fair treatment for all employees who may be subject to disciplinary action. Except in cases of dismissal without notice for serious misconduct, employees receive a formal oral warning and three formal written warnings before formal dismissal.

The Group encourages employees to reach their full potential and enhances its soft skills and competitiveness by retaining talent through a comprehensive promotion mechanism and competitive remuneration packages.

To strengthen employees' sense of belonging and build workplace camaraderie, the Group organises various activities, including festival celebrations, early leave during festive seasons or special occasions, quarterly morale activities, interest classes, workshops, an annual dinner, and celebrations of employees' life events.

26 Microware Group Limited

B2. Employee Health and Safety

The Group is committed to providing a healthy and safe working environment for its employees and subcontractors, and to exercising a duty of care towards its customers and the general public in all business activities. The Group takes proactive steps to prevent accidents and injuries arising from work-related activities.

The Group's Health and Safety Policy emphasises that management at all levels is responsible for ensuring compliance with the Occupational Safety and Health Ordinance (Cap. 509) and the policy itself. Key elements of the policy include:

• Identifying and minimising risks associated with all types of work activities.

• Preventing and investigating accidents, should they occur.

• Ensuring that contractors and business partners adhere to the Group's health and safety requirements.

• Providing comprehensive health and safety training for employees.

  The Company's Office Administration Department periodically monitors and reviews health and safety performance. To maintain a healthy and safe working environment, the Group has implemented the following measures:

• Ensuring proper lighting and adequate ventilation in the office.

• Promoting employee awareness of health and safety through readily accessible information.

• Regularly checking and inspecting furniture, replacing items as needed to prevent physical injuries.

• Providing appropriate equipment, including comfortable chairs, hand tools, and light-duty working platforms.

• Offering a group medical scheme and body check claim reimbursement to employees.

• Providing e-training on health and safety for all employees.

• Sharing information about the building's fire safety facilities, equipment, and emergency evacuation plan with all employees to ensure preparedness for emergencies.

Environmental, Social and Governance Report 2025 27

During the Reporting Period, the Group observed no material non-compliance with laws and regulations concerning the provision of a safe working environment and the protection of employees from occupational hazards.

Table 1 Occupational Health and Safety Data

The Group recognises the importance of continuous learning and development for its employees. To this end, the Group provides both internal training programs and encourages participation in external training, work-related education courses, and seminars through its education subsidy program. The Group believes that comprehensive training enhances productivity, builds employee confidence, and fosters a positive working environment. Employees are eligible to apply for tuition assistance, subject to management approval.

Internal training covers a wide range of topics, including:

• Compliance & Ethics: Ensuring adherence to legal and ethical standards.

  • Anti-Bribery and Corruption

  • Competition Ordinance

  • The Personal Data (Privacy) Ordinance

• Health & Safety: Promoting a safe and healthy workplace.

  • Occupational Health and Safety

  • WEEE Scheme (Waste Electrical and Electronic Equipment)

• Language & Communication: Enhancing communication skills for effective collaboration.

  • Mandarin Course

  • Soft communication skills

28 Microware Group Limited

• Sales & Product Training: Equipping employees with the knowledge and skills to excel in sales and product-related roles.

  • New Salesman Training

  • Operate Honeywell PC42t and HP LJ Pro 4003 Printer

• Technical & IT Certifications: Providing opportunities for employees to gain industry-recognised certifications and enhance their technical expertise.

Environmental, Social and Governance Report 2025 29