International Elite : 2016 Environmental, Social and Governance Report【PDF file】

INTERNATIONAL ELITE LTD.

精英國際有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock code: 1328)

2016 Environmental, Social and Governance Report

CONTENTS

1. About this report 1

2. Compliance with laws and regulations 3

3. Stakeholder engagement 4

4. Materiality assessment 5

5. Environment 6

6. Environmental policy 6

7. Use of resources 6

8. Emissions 7

9. Environment and natural resources 8

10. Compliance 8

11. Social 9

12. Employment and labor practices 9

13. Staff and remuneration benefits 9

14. Health and safety 9

15. Development and training 11

16. Labor standards 11

17. Operation 12

18. Product responsibility 12

19. Supply chain management 14

20. Anti-corruption 15

21. Community investment 16

22. Hong Kong Stock Exchange "Environmental, Social And Governance Reporting Guide" Index Table 17

    i INTERNATIONAL ELITE LTD. 1 ABOUT THIS REPORT

    BASIS OF PREPARATION

    This report is the 2016 Environmental, Social and Governance Report (the "ESG Report") of International Elite Ltd. (the "Company") and its subsidiaries (the "Group") prepared in accordance with the general disclosure requirements set out in Appendix 27 "Environmental, Social and Governance Reporting Guide" to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules"), which gives a performance review of three major responsibilities, namely economic, environmental and social responsibilities, of the Company in 2016.

    BUSINESS OF THE GROUP

    The Group is a customer relationship management ("CRM") outsourcing service provider with business focus in Hong Kong, Macau and the People's Republic of China ("PRC") markets. CRM is a process of providing services to customers with the use of communication and computer networks. During the year under review, the Group continued to provide services to established telecommunications service providers, including Hutchison Telecommunications, Hutchison Global, China Unicom Guangdong and PCCW Mobile. Besides, management continues to diversify the Group's CRM customer base to non-telecommunications industries, the clients of which include, but not limited to, KFC, Guangzhou Watsons, Wuhan Watsons, Guangzhou Park'N Shop, Pizza Hut and Panasonic (Guangzhou). Upon acquisition of Sunward Telecom Limited and its subsidiaries, and completion of subscription of 1,000,000,000 shares of Global Link Communications Holdings Limited ("GLCH"), the Group is also engaged in the radio frequency-subscriber identity module ("RF-SIM")and passenger information management system ("PIMS") business.

    During the reporting period, the principal business of the Group is classified into the following three segments: CRM service ("CRMS") business, RF-SIM business and PIMS business.

    CRMS business includes the provision of inbound services and outbound services. Inbound services comprise a range of customer hotline services, including general enquiry, technical support, broadband connection arrangement, service installation, account activation, subscriber details update, account enquiry, account termination, order placement, member registration, built-in secretary ("BIS") and super secretarial services ("Super BIS"). BIS service is a personalized message taking service, where its operators transmit messages left to the subscriber via SMS. The Super BIS service is a concierge service where the operators can provide advanced functions such as making restaurant reservation and purchasing flight tickets for high-end subscribers. Outbound services, on the other hand, include telesales services and market research services. The Group's operators run on behalf of their customers promotions and ongoing telemarketing via unsolicited phone calls (cold calls). The operators can also conduct large scale surveys to efficiently collect feedback, opinions, and complaints for their customers.

    RF-SIM is a technology of proprietary intellectual property right that embeds a special-made radio frequency module into a mobile SIM card that complies with GSM specifications. The RF-SIM card is a combination of ordinary mobile phone subscriber identity module card and contactless smartcard. RF-SIM business includes

    (i) research and development, production and sales of RF-SIM products; (ii) licensing of the RF-SIM operation rights in markets other than Hong Kong and Macau; and (iii) research and development and technology transfer of certificate authority-SIM ("CA-SIM") application rights to customers.

    PIMS business includes sales of passenger information management system ("PIMS") products provided by the Group's subsidiary, GLCH. For GLCH's environmental, social and governance Report, please refer to its annual report.

    2016 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 1

    1 ABOUT THIS REPORT (continued)

    The revenue of the Group from different sectors in 2015 and 2016 are as follows:

    Technology

    transfer income

    Sales of RF-SIM 2%products

    7%

    Telesales Services 35%

    Licensing income 2%

    Customer Hotline Services 50%

    Sales of RF-SIM products

    2%

    Telesales Services 31%

    Sales of PIMS products

    18%

    Customer Hotline Services 46%

    Built-in-Secretarial

    Services 4%

    Revenue by services in 2015

    Built-in-Secretarial

    Services 3%

    Revenue by services in 2016

    REPORTING PERIOD AND SCOPE

    The reporting period of this report covers the financial year of 2016 (from 1 January 2016 to 31 December 2016), which is the same as the reporting period of the Group's annual report. The main scope of this ESG report covers the customer hotline services and telesales services (including BIS service) of the Group, which contribute to the majority of the Group's total revenue, namely 80%. The principal places of business of the Group are Hong Kong, PRC and Macau.

    SOURCES OF INFORMATION

    The information disclosed in this report is mainly sourced from internal files of the Company and public information in the market. All information contents have been reviewed and confirmed by the Group's management and the departments in charge, and filed formally. Should you have queries or comments of this report, please do not hesitate to contact the Compliance Officer of the Group, Mr. Wong Kin Wa via email: [e-mail] or phone: [phone].

    2 INTERNATIONAL ELITE LTD.