VALUETRONICS HOLDINGS LIMITED

VALUETRONICS HOLDINGS LIMITED

SUSTAINABILITY REPORT

2025
Unit 9-11, 7/F Technology Park, No. 18 On Lai Street,
Shatin, New Territories, Hong Kong
T 852 2790 8278 I F 852 2304 1851
[Link]
TABLE OF CONTENTS

01 ABOUT THIS REPORT

02 BOARD STATEMENT ON SUSTAINABILITY

03 ORGANISATIONAL PROFILE

04 OUR APPROACH TO SUSTAINABILITY

07 ECONOMIC

09 ENVIRONMENTAL

11 SOCIAL

14 GOVERNANCE

16 CLIMATE-RELATED DISCLOSURES

19 GRI CONTENT INDEX

Sustainability Report 2025 01 Valuetronics Holdings Limited

ABOUT THIS REPORT

We are pleased to present Valuetronics Holdings Limited’s (the “Company”, and together with its subsidiaries, the “Group”) annual
Sustainability Report (“Report”), for our financial year ended 31 March 2025 (“FY2025”). This Report is set out on a “comply or explain”
basis in accordance with Rule 711A and 711B and Practice Note 7.6 of the Singapore Exchange Securities Trading Limited (“SGX-ST”)
Listing Manual on Continuing Listing Obligations.

This Sustainability Report has been prepared with reference to the Global Reporting Initiative (“GRI”) Standards 2021. GRI is the most
widely adopted global standards for sustainability reporting and it provides businesses and organisations worldwide a framework to
measure, understand and communicate their critical sustainability issues on economic, environmental, social and governance impacts
to stakeholders.

This Report highlights the key economic, environmental, social and governance (“EESG”) related initiatives carried out throughout a
12-month period, being FY2025.

The Group’s Sustainability Report summarises the expectations from various stakeholders, general business environment that the Group
is operating in and what the Group has done in order to ensure the sustainability of the Group over the years. The data, statistics and
targets in this Report are in relation to the Group’s entire operations in China, Hong Kong and Vietnam.

We have relied on our internal sources of information and verification mechanisms to ensure the accuracy of this Report and have engaged
a professional accounting firm to conduct an internal review for our sustainability reporting process. There was no external assurance
obtained for this reporting year and we may consider seeking an independent assurance review in the future.

We welcome feedback from our stakeholders with regards to our sustainability efforts as this enables us to improve our policies, systems
and results. Please send your comments and suggestions to contact@[Link].
Valuetronics Holdings Limited 02 Sustainability Report 2025

BOARD STATEMENT ON SUSTAINABILITY

Sustainability is a part of the Group’s wider strategy to create long-term value for all its stakeholders.

The Board of Directors of the Company (the “Board”) oversees the management and monitoring of these factors and takes them into
consideration when determining the Group’s strategic direction and policies. At the time of reporting, the key material EESG factors for
the Group have been identified and reviewed by the top management of the Group.

The Board is supported by the Sustainability Management Committee (“SMC”) which is headed by the Chief Financial Officer (“CFO”).
SMC comprises of senior executives from various departments. The Board works closely with the SMC, who play a vital role to establish
sustainability targets, develop strategic plans, manage and monitor overall sustainability performance, and report to the Board. It ensures
sustainability remains a core priority by periodically evaluating practices, execution and alignment with organisational goals. The SMC
is supported by the operation team, which is responsible for assisting SMC in coordinating the implementation and execution of the
sustainability programme across the organisation.

As climate change continues to affect many industries, we are seeing an increased need for transparency around its potential risks and
opportunities. The impacts of climate change are felt across businesses, and therefore it is important to consider how we are transitioning
towards a low-carbon economy.

We incorporated our climate risks and opportunities identified within this Report and assessed the resilience and climate-related impacts
according to the Task Force on Climate-related Financial Disclosures (“TCFD”) Recommendations. We hope to phase our approach to
disclosing our progress and continue taking an active involvement in managing climate-related risks and opportunities in this journey.

We are pleased to announce that the Board has attended a comprehensive sustainability training prescribed by the SGX. The training
was aimed at equipping our Board members with the knowledge and skills necessary to integrate sustainability principles into our
corporate strategy.

23 June 2025
Sustainability Report 2025 03 Valuetronics Holdings Limited

ORGANISATIONAL PROFILE

Established in 1992 and listed on the SGX Mainboard in 2007, Hong Kong-headquartered Valuetronics Holdings Ltd. (“Valuetronics” or
together with its subsidiaries, the “Group”) is a one-stop manufacturing solution provider that offers vertical integrated services under one
roof. This capability sets the Group apart from traditional Electronics Manufacturing Services (“EMS”) providers as it gives its customers
the advantage of a faster time-to-market, better quality control, and most importantly, a competitive total cost of ownership.

The Group’s proactive customer-centric philosophy and ability to engage, understand market and industry trends, and initiate product-
oriented solutions that support its customers’ ever-changing needs, has resulted in lasting partnerships with some of the world’s leading
brands across various sectors and a wide geographical reach that covers America, Europe and Asia Pacific.

Valuetronics’ wide product manufacturing capability and range of customers from emerging enterprises to top global multinational
corporations, are a testimony to the success of its customer-centric philosophy. It also highlights the Group’s ability to accommodate
customers’ requirements for various volume mix, complexity and industrial standards, while demonstrating a broad spectrum of
competence.

Valuetronics has two principal business segments, namely Consumer Electronics (“CE”) Products and Industrial and Commercial Electronics
(“ICE”) Products. Together, the two segments serve a diversified customer base across multiple industries, and cover an expanding range
of electronics products that include new era products such as cooling solutions for high performance computing environments, network
access solutions, hardware solutions for retail chains and the entertainment industry, as well as smart lighting, printers, temperature
sensing devices, telecommunication and network equipment and automotive parts.

Aligned to its multi-location strategy, Valuetronics’ two manufacturing facilities are located in the manufacturing powerhouses of China
and Vietnam. Its 110,000 m2 China Campus is located at Huizhou City, Guangdong Province, close to Shenzhen, while its 52,541 m2
Vietnam Campus is in Phu Tho Province, close to Hanoi. The two campuses enable the Group to offer diversified manufacturing solutions
that are tied to the latest technological advancements.
Valuetronics Holdings Limited 04 Sustainability Report 2025

OUR APPROACH TO SUSTAINABILITY

PLAN AND ENGAGE

SCOPE STAKEHOLDERS

VALUETRONICS´
SUSTAINABILITY
METHODOLOGY

ASSESS
MATERIALITY
REPORT

COLLECT
DATA
Sustainability Report 2025 05 Valuetronics Holdings Limited

OUR APPROACH TO SUSTAINABILITY

STAKEHOLDERS ENGAGEMENT PLATFORMS FREQUENCY OF ENGAGEMENT KEY TOPICS OF INTEREST

• Orientation training for new • Throughout the year • Occupational health

recruits and safety
• Annual performance review & • Remuneration and
appraisals benefits
• Team-building events • Training and
• Townhall sessions development
EMPLOYEES • Electronic communication & • Fair employment
notice board practices and policies

• Business review • Throughout the year • Quality of products

• Customer visits • No child labour policy
• Executive dialogue • Compliance with
environmental laws
CUSTOMERS and regulations

• Supplier surveys • Throughout the year • Supplier environmental

• Business meetings with critical assessment
suppliers
• Supplier factory audit
SUPPLIERS AND SERVICE
PROVIDERS

• Analysts meeting • Throughout the year • Profitability and

• Corporate day for institutional • Annually shareholder returns
investors • Anti-corruption
• Web portal & email • Business Ethics
• Annual General Meeting • Compliance to rules
INVESTORS/
• Group Annual Report and and regulations
SHAREHOLDERS
Sustainability Report

• Participation in volunteer • Throughout the year • Socially responsible

community service corporate citizen and
building community
support
LOCAL COMMUNITIES

• Participation in government • Throughout the year • Maintaining good

agencies’ seminars on policy corporate governance
updates standard
• On-site advisory visits • Environmental
• Regular reports compliance
LOCAL GOVERNMENT • Health and safety
regulations compliance

STAKEHOLDER ENGAGEMENT
An important starting point in our sustainability journey is to identify our stakeholders and the material aspects relevant to our business.
Regular engagement with our stakeholders provides a core input for determining our material focus areas. We engage both internal
and external stakeholders to understand their concerns and emerging priorities. This enables us to initiate collaboration and be part of
formulating or facilitating solutions. These key stakeholders include, but are not limited to, customers, suppliers, employees, investors,
and local government. We adopt both formal and informal channels of communication to understand the needs of our key stakeholders
and incorporate their feedback into the evolution of corporate strategies to achieve mutually beneficial relationships.
Valuetronics Holdings Limited 06 Sustainability Report 2025

OUR APPROACH TO SUSTAINABILITY

MATERIALITY ASSESSMENT
Our sustainability process begins with the identification of sustainability issues surrounding our business. We then evaluated and
prioritised the issues that are most pervasive and relevant to our business. We disclose the prioritised issues in our Report of which their
inter-relationships are shown below:

PRIORITISATION
IDENTIFICATION
Prioritisation of the
Identification of issues based on the
sustainability issues that pervasiveness and
are of relevance to the impacts of issues to
Group’s activities. our business.

EVALUATION VALIDATION

Evaluation of sustainability Validation of the

issues to determine the sustainability issues to be
most pervasive issues managed and reported in
based on the stakeholder this sustainability report by
engagement. the leadership.

A materiality assessment is conducted every year, incorporating inputs from our various stakeholder engagements. The Group has
conducted a materiality assessment during the year. In order to determine if a sustainability issue is material, we assessed its potential
impact on the economy, environment, society and governance pillars of the Group as well as its influence on our stakeholders.
Sustainability issues were identified and prioritised through internal workshops, peer reviews and social impact assessments at site level.
Applying the guidance from GRI and consultation with stakeholders, we have reassessed and identified the following material aspects to
focus on this year. Additionally, the Group has validated one new material factor-Emissions which will be included in this year’s Report:

ECONOMIC ENVIRONMENTAL SOCIAL GOVERNANCE

• Economic performance • Energy • Diversity and equal • Sustainability governance

• Anti-corruption • Emissions opportunity • Enterprise risk
• Supplier environmental • Fair employment management
assessment • Child labour • Business ethics and
• Occupational health compliance
and safety • Environmental
• Training and education compliance
• Local communities • Socioeconomic
compliance

>> Page 07 >> Page 09 >> Page 11 >> Page 14

Sustainability Report 2025 07 Valuetronics Holdings Limited

ECONOMIC
ECONOMIC PERFORMANCE

Against a backdrop of persistent macroeconomic uncertainty, the Group delivered a commendable performance in FY2025. We
attribute this to our strategic initiatives, including a decisive rebalancing of product portfolio toward higher-margin offerings,
which have strengthened our competitive position and cushioned our earnings. But looking ahead, we expect ongoing volatility
from the evolving tariff situation and its resulting impact on global markets.

MR RICKY TSE CHONG HING

Chairman and Managing Director

Considering its FY2025 results performance, the Board proposed a Final Dividend of HK 11.0 cents per share and a Special Dividend
of HK 8.0 cents per share for FY2025, which are subject to shareholders’ approval at the Annual General Meeting to be convened. The
Company has also paid an Interim Dividend of HK 4.0 cents per share and Special Interim Dividend of HK 4.0 cents per share in December
2024 and in aggregate, the Interim, Final and Special dividends amount to HK 27.0 cents per share (FY2024: HK 25.0 cents per share).

The aggregate dividend amount is approximately 65.0% of the net profit attributable to shareholders for FY2025 and is in line with the
Company’s formal dividend policy of paying out between 30% to 50% of net profit as normal dividends to shareholders. The Company
will continue to adhere to this formal dividend policy.

The Group’s FY2025 revenue increased by 3.5% to HK$1,729.1 million from HK$1,669.9 million in FY2024. Gross profit correspondingly
increased by 10.8% to HK$293.7 million in FY2025 from HK$265.2 million in FY2024, with gross profit margin increasing by 1.1 percentage
point to 17.0% for FY2025 due to a shift in sales mix. As a result, Valuetronics achieved a net profit attributable to shareholders of
HK$170.4 million for FY2025, which translates into earnings per share of approximately HK 41.6 cents.

As at 31 March 2025, the Group’s financial position remains stable and resilient with a net asset value per share (excluding treasury shares)
of HK$3.6 (31 March 2024: HK$3.4). The Group has net current assets of HK$952.9 million (31 March 2024: HK$1,068.0 million), total assets
of HK$2,183.8 million (31 March 2024: HK$2,088.9 million) and a shareholders’ fund of HK$1,456.1 million (31 March 2024: HK$1,399.6
million). Supported by strong operating cash flows, the Group continues to have no bank borrowings and has cash and cash equivalents
of HK$1,093.8 million as at 31 March 2025 (31 March 2024: HK$1,164.5 million).

REVENUE PROFIT ATTRIBUTABLE TO OWNERS OF THE COMPANY

HK$ MILLION HK$ MILLION

FY2021
680.7 187.1
FY2021 1,600.8
FY2022
706.9
FY2022 113.5
1,320.5
FY2023
433.4
FY2023 123.0
1,580.3
FY2024
417.9
FY2024 159.6
1,252.0
FY2025
367.0
FY2025 170.4
1,362.1

Consumer Electronics Industrial & Commercial Electronics

Valuetronics Holdings Limited 08 Sustainability Report 2025

ECONOMIC
EARNINGS PER SHARE (EPS) AND DIVIDENDS PER SHARE
HK cents EPS Dividend per share Interim Dividend

50

48.1

40 46.2
41.2 43.0
38.7 41.6
36.9 36.4 36.8
30 33.2
31.1
29.0 27.0 29.1
25.0 26.1 25.0
20 21.0 27.0
19.9 20.0 20.0 20.0 20.0 20.0 20.0
17.0
15.2
10 14.0 14.0
8.0 8.0
8.0 7.0
7.0 6.0
5.0 5.0 4.0 4.0
0
FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25

For our detailed financial results, please refer to the following sections in our FY2025 Annual Report:

• Financial Highlights, page 4

• Financial Review, page 5
• Financial Statements, pages 44 to 86

In financial year ending 31 March 2026 (“FY2026”), we target to remain profitable and maintain the existing dividend distribution policy
as short-, medium-, and long-term target.

ANTI-CORRUPTION
Here at Valuetronics, we do not tolerate corruption in any form. This has been made clear to our employees, suppliers and business
partners. Valuetronics ensures that all staff (other than production line workers) sign an anti-corruption declaration when they join the
Company. Dedicated whistleblowing hotlines using both email and electronic platforms are set up so that if anyone who wants to
report any business ethics issue can do so confidentially and any report of corruption is immediately escalated to the attention of senior
management.

We have achieved the target we set last year. There have been no confirmed incidents in which employees were dismissed and contracts
with business partners were terminated due to corruption. There were also no public legal cases brought against the Group in FY2025
(FY2024: NIL). Similar to FY2024, we have staff signed anti-corruption declaration. We will continue to monitor and prevent anti-corruption
occurrences as targeted. For FY2026, we aim to achieve zero incidents of corruption and continue to ensure that all employees are fully
aware of our anti-corruption policy. This includes ensuring that all employees understand and sign our anti-corruption declaration,
aligning with our short-, medium-, and long-term targets.
Sustainability Report 2025 09 Valuetronics Holdings Limited

ENVIRONMENTAL
ENERGY
We conducted a material aspect assessment and found that stakeholders are interested in the topic of energy and keen to know what
action plan we have in place to manage and reduce energy consumption. In respect to the new inclusion of energy as a material factor,
we are proud to inform our stakeholders of our investment in renewable energy that has successfully been installed since July 2022. We
have installed a solar panel system to allow us to diversify the source and ensure the clean energy we use in our PRC factory.

The solar panel system installation project was our testament to reducing carbon footprint and contributing to a cleaner environment.
Our primary motivation for undertaking the solar installation project was to reduce our carbon footprint and contribute to a cleaner
environment. By harnessing solar energy, we have significantly reduced our reliance on non-renewable energy sources, thereby lessening
our environmental impact.

The Group acknowledges the critical role of transparent energy data disclosure in reinforcing our sustainability commitment and enabling
stakeholders to better assess our environmental impact. Through consistent tracking and reporting of energy consumption, we aim to
uncover opportunities for operational enhancements and more efficient resource use. In line with rising stakeholder expectations and
evolving regulatory standards, the Group is committed to strengthening our disclosures further. Building upon the foundation laid in
the previous year, we will broaden the scope and depth of our energy reporting to ensure greater clarity, accountability, and alignment
with global sustainability benchmark.

Demonstrating our ongoing commitment to environmental stewardship, Valuetronics prioritised effective energy management
throughout FY2025, and expanded its energy reporting to include sources beyond electricity. The Group’s energy consumption can be
categorised into three main areas:

1. Liquefied Natural Gas (“LNG”) and Liquefied Petroleum Gas (“LPG”) – used for canteen cooking purposes for employees;

2. Petrol Gas – used to power the Group’s vehicles;

3. Electricity – used for day-to-day operations and factory activities.

The following graphs below illustrated the Group’s energy consumption:

CONSUMPTION BY ENERGY SOURCES ELECTRICITY CONSUMPTION

(in Thousands) (in MWh)

Net Electricity Consumed Electricity Sold

30 16,000

20 15,500 413
403
29 29
10 15,000 15,339
15,202
5
0 14,500
LNG (Cubic Metres) LPG (Cubic Metres) Petrol Gas (Litres) FY2025 FY2024

Note: Net electricity consumption is calculated as gross electricity consumption minus the amount of electricity sold

In FY2025, we consumed around 23% (FY2024: about 20%) of electricity from our solar panel system in our PRC factory, surpassing the
10% target (FY2024: at least 10%). This overachievement is attributed to good weather conditions and a lower level of production activities
in the China factory, which increased the relative contribution of solar energy.

In FY2026, our target is to maintain at least 10% of electricity consumption sourced from renewable sources at our PRC factory, which is
aligned with our short-, medium-, and long-term targets.
Valuetronics Holdings Limited 10 Sustainability Report 2025

ENVIRONMENTAL
EMISSIONS
In response to stakeholders’ concerns and the increasing importance of climate responsibility, the Group has taken active steps to reduce
its carbon footprint. We have commenced systematic tracking and monitoring of emissions, while implementing sustainable practices
to minimise environmental impact and support the transition to a low-carbon economy.

The Group has made its inaugural disclosure of Greenhouse Gas (“GHG”) emissions this year, focusing on direct (Scope 1) and indirect
(Scope 2) emissions. We recognise that emissions management is a key concern for our stakeholders and remain committed to meeting
the requirements set by the SGX-ST and aligning with relevant climate reporting frameworks.

DIRECT (SCOPE 1) AND INDIRECT (SCOPE 2)

GHG EMISSIONS
(in tCO2e)

60,000
50,000
40,000 53,692

30,000
20,000
10,000
11,599
0
Scope 1 Scope 2

This is the first year the Group has shared its emissions data. At the same time, the Group is looking for simple and cost-effective ways
to reduce its carbon emissions, such as using energy more efficiently, improving processes, and using renewable energy where possible.

Echoing to our efforts, in FY2026, we remain committed to reducing GHG emissions from our operations by 5% so as to align with our
short-, medium-, and long-term targets.

SUPPLIER ENVIRONMENTAL ASSESSMENT

To raise environmental awareness among our suppliers, Valuetronics encourages suppliers to be accredited with the ISO 14000 standard.
With regard to raw materials that might contain environmentally hazardous substances, the Group has been working closely with suppliers
to push forward more environmental protection awareness with suppliers required to make annual declaration on their ISO 14000
compliance. We have performed our annual assessment for all our Printed Circuit Board (“PCB”) suppliers, as well as our top 100 vendors
in terms of purchasing amount through questionnaires. In such questionnaires, they were required to make an annual environmental
compliance declaration.

In FY2025, we have achieved our target as the majority of the assessed suppliers declared that they have been accredited with ISO 14000
standard or have complied with local government laws and regulations on environmental issues. Out of these suppliers assessed, over
95% of our top 100 vendors and all the PCB suppliers (FY2024: over 95% of our top 100 and the PCB suppliers) have declared that they
have been accredited with ISO 14000 standard or have complied with local government laws and regulations on environmental issues.

In FY2026, we target to have the majority of our suppliers declare accreditation of ISO 14000 or environmental compliance with local
government laws and regulations and commit to initiate due diligence for new suppliers. This is aligned with our short-, medium-, and
long-term targets.
Sustainability Report 2025 11 Valuetronics Holdings Limited

SOCIAL
DIVERSITY AND EQUAL OPPORTUNITY
The Company recognises the benefits of having a diverse Board and has adopted a Board Diversity Policy which sets out the approach
to achieving diversity of the Board. The Nominating Committee (“NC”) is responsible to review and monitor its implementation and will
recommend appropriate changes to the Board for consideration and approval.

Pursuant to the Board Diversity Policy, the NC reviews annually the appropriateness of the current Board size and composition, taking
into consideration, inter alia, the needs of the Company and the environment in which it operates, the collective skills and competencies
of the Board, service tenure spread of the Directors, the need for progressive renewal of the Board and changes (if any) in the regulatory
environment. When the need arises, the NC will make recommendations on changes to the Board to complement the Company’s
corporate strategy and to ensure that there is an appropriate composition of members of the Board with suitably diverse backgrounds
to meet the Group’s operational and business requirements. As at the end of FY2025, our board consists of 5 members, with one female
director, representing 20% of the board. For more detailed information on our Board Composition including relevant diversity indicators,
please refer to our Corporate Governance, pages 16 and 18 of our Annual Report.

Valuetronics maintains a policy of providing equal opportunities to all its employees. The Group’s recruitment of employees and their
subsequent annual appraisal are based on merit, work attitude, cooperation with other staff, and their efficiency and effectiveness of work.

Furthermore, the Group does not discriminate according to race, age, gender, religion, ethnicity, facial attractiveness, physical impairments,
sexual preference, political viewpoints, or nationality.

Similar to the previous year, we have maintained an almost equal ratio of male to female employees. Our objective is to have no incidents
of discrimination and there has been no reported discrimination issue during FY2025 (FY2024: NIL). In FY2026, we will continue to hire
based on merit and maintain zero incident of discrimination within the Group throughout the year.

Our headcounts were distributed as follows:

Worker distribution by gender FY2025 FY2024

Female 50% 48%

Male 50% 52%
100% 100%

Staff (other than workers) distribution by gender FY2025 FY2024

Female 47% 50%
Male 53% 50%

100% 100%

Worker and staff distribution by age group FY2025 FY2024

16-17 years 0% 6%
18-20 years 5% 8%
21-40 years 61% 59%
More than 40 years 34% 27%

100% 100%
Valuetronics Holdings Limited 12 Sustainability Report 2025

SOCIAL
FAIR EMPLOYMENT
The Group conducted a material aspect assessment in FY2025. Based on the recent assessment, the employment topic is considered
material to the Group as it has a direct impact and implications for the productivity of our workforce and our Group’s sustainability. It
is imperative for us to create a conducive environment and fair employment. The Group considers its employees as the most valuable
asset and offers them fair and competitive remuneration packages. Discretionary incentives are granted to eligible employees based on
the performance of the Group as well as the individual employee. We continue to provide employment opportunities to local students
by closely cooperating with local colleges and universities and to provide nurturing programmes for fresh graduates. Valuetronics strives
to provide a fair employment environment.

In FY2025, the details of our workforce’s new hires and turnover rate are as follows:

Staff Staff
Distribution of new hires by age group Distribution of new hires by gender
FY2025 FY2024 FY2025 FY2024

Less than 20 years 2% 2% Male 46% 56%

20 – 40 years 76% 80% Female 54% 44%

More than 40 years 22% 18% 100% 100%

100% 100%

In FY2025, the turnover rate of staff was 14% (FY2024: 11%). This turnover was partially attributed to a strategic reduction of headcount
as part of our resource optimisation efforts.

In FY2026, we target to hire new employees and aim to achieve a low turnover rate. We set out to achieve the same for our short-,
medium-, and long-term targets.

CHILD LABOUR
The Group has a strict no child labour policy and expects the same from all of our suppliers. Declaration is made during our new supplier
application procedure and as a part of the annual supplier assessment. All our suppliers comply with our no child labour policy. In FY2025,
there were zero child labour incident reported in our operations and suppliers (FY2024: NIL).

The Group understands the salient issues of human rights that may occur in business operations. We are of the view to expand our
vision, policies and programmes concerning human rights to contribute to the effective abolition of child labour within our operations
and suppliers. In FY2026, we aim to preserve 100% of no child labour policy, encompassing our short-, medium-, and long-term targets.

OCCUPATIONAL HEALTH AND SAFETY

The Occupational Health and Safety (“OHS”) of our workforce has always been one of our priorities. Valuetronics is pleased to confirm that
there have been no fatal industrial accident reported in FY2025. Our Environment, Health and Safety (“EHS”) department is independent
from the operational departments and monitors the following measures to provide a safe working environment for all employees:

• Identifying potential risks through routine campus patrols and drawing up and implementing preventive actions;

• Analysing each incident for its root causes and communicating with all the relevant department managers for corrective actions and
implementing preventive measures;

• Conducting regular training for employees on safety practices;

• Conducting regular checks for emission compliance;

• Reinforcing the occupational health and safety awareness by providing trainings, putting up banners and posters in public areas;

• Closely following and ensuring compliance with the government’s rules and regulations on EHS;

• Ensuring fire safety management protocols are in place; performing routine check on fire safety; and

• Carrying out regular fire drills and training.

Sustainability Report 2025 13 Valuetronics Holdings Limited

SOCIAL
In addition, the EHS department chairs regular health and safety meetings with all operational department managers to discuss
occupational health and safety issues, focusing on the risks identified above. Immediate corrective actions are carried out for each
EHS incident, which is followed by a formal review for further prevention. The EHS department also verifies the implementation and
effectiveness of any corrective actions.

In FY2025, there were zero fatal industrial accident reported in the factory (FY2024: NIL) and the lost-time work-related injury rate was
below 0.1% (FY2024: below 0.1%). In FY2026, we will continue our commitment to maintaining zero cases of fatal industrial accidents in
the factory and ensuring a low lost-time work-related injury rate, in alignment with our short-, medium-, and long-term targets.

TRAINING AND EDUCATION

Valuetronics provides its employees with an orientation program and regular training. During the year, we dedicate resources to ensure
that training opportunities are accessible for all genders. This is done to demonstrate our support for equal opportunity in all aspects,
including training and education programs.

The orientation program is organised for new employees to introduce the Company and its operations as well as its codes of conduct,
applicable internal and external rules and regulations, and workplace safety practices.

For workers, regular training is provided for job-related skills and updates on workplace safety. For staff, in addition to workplace safety
training, more specialised training is also held to ensure that they keep pace with the growth and development of the Group. Staff training
records are reviewed, and specific training needs are identified for the individual’s career advancement. Valuetronics places importance on
ensuring the competency of its employees to serve all stakeholders. Our in-house training records showed that at the Group level, each
staff averaged 9 hours for FY2025 (FY2024: 5 hours). This increase was driven by expanded operations in Vietnam, including increased
product deployments and new customer onboarding. In FY2026, we will continue to deploy our resources and offer training courses to
our employees to enhance their professional competence.

LOCAL COMMUNITIES
Valuetronics strongly believes in being a socially responsible corporate citizen, striving to contribute to the community through
meaningful engagement. In FY2025, the Company managed to organise 3 community programmes. (FY2024: 3 programmes). Looking
ahead to FY2026, we are committed to continuing our efforts to give back to the community, targeting to organise at least one community
activity per quarter.
Valuetronics Holdings Limited 14 Sustainability Report 2025

GOVERNANCE
SUSTAINABILITY GOVERNANCE
At Valuetronics, we believe that strong corporate governance is key to a sustainable business. That is why since our listing on the SGX
Mainboard in 2007 and all through to FY2025, we have continued to comply with the Singapore Code of Corporate Governance. Please
refer to pages 13 to 34 of our Annual Report, for details of our compliance with the Singapore Code of Corporate Governance. In FY2025,
we have achieved the target we set in FY2024. We will continue to ensure that Valuetronics remains compliant with SGX requirements
in FY2026 and onwards, aligning with our short-, medium-, and long-term targets set.

As an integrated EMS provider, it is a constant challenge to be able to successfully manage our environmental and social issues.
Nevertheless, Valuetronics has incorporated these issues into our business model and implemented the applicable sustainable and
responsible practices to mitigate these issues throughout the Company. Our products also meet the stringent safety and environmental
requirements demanded by our customers.

Valuetronics pays strict attention to the implementation of good labour practices in all our operations. The Group also provides various
training opportunities for continued employee development, and this is reflected in the quality and delivery of our products and services.
We value our relationships with our clients and the wider community in which we operate in, and these strong relationships have helped
us through the challenging times in the past. Valuetronics strongly believes that in the long run, these efforts will have a positive impact
on our economic performance.

ENTERPRISE RISK MANAGEMENT (“ERM”)

ERM is an integral part of good corporate governance as well as resources management. Valuetronics has a thorough and comprehensive
ERM framework to identify and manage its risks and exposures in an integrated, systematic and consistent manner. For detailed disclosure
on ERM, please refer to pages 26 and 27 of our Annual Report.

Similar to FY2024, we have performed risk assessment exercise and achieved the target we set last year. We aim to perform annual risk
assessment and disclose it in accordance with SGX requirement in FY2026 and onward, aligning with our short-, medium-, and long-
term targets set.

BUSINESS ETHICS AND COMPLIANCE

When it comes to hiring, Valuetronics takes any possibility of conflict of interest into serious consideration. Our code of conduct clearly
spells out our expectations from our staff and the subsequent consequences if any of the rules are violated or when standards are not
met. In addition, we also have fair grievance procedures.

The Group also takes measures to guard against cybersecurity risks in order to protect confidential information for both our internal and
external stakeholders. This applies to our employment process where the privacy of all applicants is safeguarded and access to personal
data is restricted to authorised persons on a strict need-to-know basis.

All of our staff are reminded of the importance of upholding the highest standards when it comes to business ethics. We have incorporated
business ethics and codes of conduct into our new joiner orientation program, so that all of our employees are fully aware that our
compliance with rules and regulations is a key part of running a responsible business.

Valuetronics has complied, in all material aspects, with applicable environmental rules and regulations, anti-competitive behaviour laws,
and requirements on health and safety. For FY2025, we have achieved our target to comply with applicable environmental rules and
regulations, anti-competitive behavior laws, and requirements on health and safety. There were no significant fines or non-monetary
sanctions for any non-compliance with the aforementioned laws, regulations and requirements. There have also been no reported
incidents of corruption during the reporting period (FY2024: NIL). It is Valuetronics’ goal to maintain zero incidents of corruption, and we
regularly review our policies on whistleblowing and anti-corruption so as to ensure that they are effective. In FY2026, we will continue
to aim for zero incidents of non-compliance in the following years as short-, medium-, and long-term target.
Sustainability Report 2025 15 Valuetronics Holdings Limited

GOVERNANCE
ENVIRONMENTAL COMPLIANCE
Valuetronics has achieved the ISO 14000 accreditation and standards for environmental management since 2008 for our China operation
and since 2021 for our Vietnam operation, following its commencement of mass production. ISO 14000 is based on a plan-do-check-act
(“PDCA”) methodology which provides a systematic framework for the integration of environmental management practices by supporting
environmental protection, preventing pollution, minimising waste, reducing energy and material use. Recyclable waste is stored, collected,
and processed by qualified third-party recycling firms.

We are committed to continuing the PDCA approach to improve our environmental management, targeting environmental protection,
environmental regulatory compliance, and no major non-conformities in any kind of environmental compliance audits in both our
China and Vietnam operations. Aside from the above, there were no incidents of non-compliance with environmental-related laws and
regulations resulting in significant fines or sanctions in FY2025 (FY2024: NIL), and we endeavor to maintain this track record next year.
In FY2026, we target to pass the environmental compliance audits as short-, medium-, and long-term target.

SOCIOECONOMIC COMPLIANCE
The nature of our operations involves individuals from the operations and the local communities we operate in. Our customers and
suppliers conduct regular communications with us to work on the assessment of socioeconomic compliance when we are doing business
with them. We also understand our operations may directly and indirectly affect the individuals living near the communities we operate
in and/or adjacent to the Group’s operations. However, we are of the opinion that there are merits to connect with the stakeholder
groups that have direct control and ability to contribute to the prevention and mitigation of negative socioeconomic impact through
upholding compliance with the relevant social and economic laws and regulations. Our Group is pleased to inform our stakeholders
that in FY2025, there was no reported non-compliance to the social and economic laws and regulations incidents (FY2024: NIL) found
within our operations and across markets we operate in.

In FY2026, we strive to have non-significant non-compliance with laws and regulations incident in the social and economic areas,
corresponding to our short-, medium-, and long-term targets.
Valuetronics Holdings Limited 16 Sustainability Report 2025

CLIMATE-RELATED DISCLOSURES
GOVERNANCE
The Board of Directors is ultimately accountable for oversight of the Group’s climate-related issues across the Group including, but not
limited to, overseeing the management of climate-related risks and opportunities, and setting the tone and direction for the Group in
the way climate-related risks are managed in the Group’s businesses. The Board ensures that climate change is taken into consideration
when determining the Group’s strategic direction and policies. At the time of reporting, the key climate-related risks and opportunities
for the Group have been identified and assessed by the top management of the Group.

The CFO, by delegation to support the Board, is tasked with the strategic management of the climate-related risks and opportunities,
driving the implementation of group-wide sustainability and climate-related initiatives, and recommending policies, guidelines, and
procedures to support climate-related management efforts. Supported by various functions, the CFO is also responsible for monitoring
and managing climate-related concerns raised by stakeholders and reporting regularly to the Board pertaining to climate-related risks
relevant to the business.

STRATEGY
Valuetronics adopts a phased approach in managing climate-related risks and opportunities across the Group. During the reporting Period,
we have begun developing our internal capabilities to address the Recommendations of the TCFD in order to manage critical climate-
related risks and opportunities within our organisation in a more strategic manner. Based on our climate risk assessment conducted
in FY2024, we have identified and assessed climate-related risks and opportunities across our operations that have potential financial
impacts in the short- (2025), medium- (2030), and long-term (2050) as follows:

Climate-related Anticipated
Risks and Opportunities Description Financial Impact Timeframe

Physical Risk Increased frequency and severity of flash floods Increased operating Medium- to Long-
and rising mean temperatures as a result of climate costs and insurance term
Rising mean temperatures change can bring about damage of manufacturing premiums
and increased extreme sites located in China and Vietnam, resulting
weather events in repair and replacement costs to our assets,
disrupted operations and potential increases in
insurance premiums.

Transition Risk The implementation of tightened carbon- Increase carbon Medium- to Long-
(Policy and Legal) related regulation such as the launch of “Interim emission reduction term
Regulations on the Management of Carbon cost
Heightened carbon Emissions Trading” by the State Council of the
regulations in China and People’s Republic of China in January 2024 to
Vietnam regulate carbon emissions trading and related
activities, and strengthen the control of
greenhouse gas emissions will possibly increase
the carbon reduction cost in the future. In
addition, the issuance of Decree 06/2022/ND-CP
by the Vietnamese government, which laid out a
roadmap to establish a national carbon market and
strengthened the mitigation of greenhouse gas
emissions, will consequentially lead to an increase
in compliance costs.

Transition Risk Increased expectations and stringent sustainability Increased operating Short- to Medium-
(Reputation) and climate disclosure requirements imposed and compliance costs term
by various stakeholders such as regulators
Enhanced climate reporting and investors may lead to increased costs in
requirements implementation of sustainability initiatives.
Failure to comply with relevant local laws and
requirements imposed by the authority may lead to
adverse impacts on the Group’s reputation.

Transition Risk (Market) The shift in consumer preferences for low-carbon Decreased product Medium- to Long-
products led to increasing demand of products demand and revenue term
Shift in customer preference with energy-saving and energy-efficient features.
Failure to improvise the manufacturing process
and substitute to low-carbon or environmental-
friendly production materials may lead to decrease
in customer demand.
Sustainability Report 2025 17 Valuetronics Holdings Limited

CLIMATE-RELATED DISCLOSURES
Climate-related Anticipated
Risks and Opportunities Description Financial Impact Timeframe

Climate-related In view of increasingly strict requirements on Increased business Medium- to Long-

Opportunities (Product & low carbon development and expectations from revenue term
Services) stakeholders, the Group will make efforts to
enhance development of products with green
Increased demand for processes to build competitiveness, improve
development of new customer experience and attract more potential
products and services customers.

Opportunities (Resilience) Identifying resilient materials and adopting Decreased operating Medium- to Long-
sustainable approaches, e.g., sourcing for low- costs term
Increased supply chain carbon footprint materials, and enhancing supply
resilience and adaptability chain management of the Group to mitigate risks Increased business
arising from the climate change will help the Group revenue
increase its adaptability in the future.

The climate scenario analysis is crucial in providing insights on the potential extent of the climate-related risk exposure to our businesses
as well as the potential opportunities. We will conduct scenario analysis to facilitate business decision-making in FY2026.

RISK MANAGEMENT
To maintain a strong system of risk and internal controls that safeguard the interests of the company and its shareholders, the Group uses
our ERM Framework to address key business risks, such as financial, operational, compliance, information technology, and sustainability-
related risks. The Group has defined clear roles and responsibilities for managing these risks, including climate-related risks, across the
Board, the Risk Management Committee (“RMC”), and the respective risk owners. To support the effective operations of the Group’s risk
management processes, the RMC meets the Board semi-annually and the risk owners report to the RMC on a semi-annual basis to ensure
accountability and oversight of climate-related matters within the organisation.

The Board oversees risk management activities and approves the Group’s risk management strategy, policies, and methodologies. The RMC
is responsible for formulating risk strategy and policy that align with the Group’s business goals. This process involves communicating
the vision and key activities to all employees, particularly risk owners, who are tasked with managing their business unit’s risk profile
and reporting to their unit head. Besides, the RMC regularly communicates critical risks to the Board along with management action
plans. Ongoing monitoring of risks by RMC includes reviewing of risk profiles, assigning risk owners, and implementing of remediation
action plans where necessary.

We have in place Risk Management Process (“RMP”), a systematic and structure guide to ensure that identified risks exposed by
Valuetronics are adequately reviewed and addressed to minimise our exposure to these risks, ensuring better operational and strategic
control over our business. The RMP follows four distinct stages to identify and assess risks relevant to the Group:

1. Risk Assessment: This stage involves identifying strategic and process-level risks, including sustainability risks, by RMC and
designated risk owners as well as other relevant stakeholders. Leveraging on brainstorming and experience sharing sessions, industry
benchmarking and risk assessment workshops, the Group identifies significant risks and records them in risk register.

2. Risk Analysis: A semi-annual risk assessment is conducted to analyse the impact and likelihood of identified risks. This step also
evaluates the effectiveness of existing controls in mitigating these risks.

3. Risk Treatment: Once risks are identified and evaluated, the RMC with the help of risk coordinators, collaborates closely with process
owners of high-risk areas to determine whether measures are required to reduce risks to acceptable levels, particularly those top
risks.

4. Risk Monitoring and Reporting: The RMC obtains approval from the Board and oversees the implementation of the identified risk
treatments. The RMC continues to monitor the effectiveness of these measures and report the status of mitigation actions or findings
to the Board in semi-annual meetings.
Valuetronics Holdings Limited 18 Sustainability Report 2025

CLIMATE-RELATED DISCLOSURES
Looking ahead, the Group will focus on integrating climate-related risks into our ERM Framework for the upcoming financial year. This
integration will help ensure that climate-related risks are systematically identified, assessed, and managed in alignment with our overall
risk management strategy.

METRICS AND TARGETS

As we strive to mitigate climate change impacts, we have established climate-related metrics such as those disclosed below to give our
stakeholders a clearer picture of how we manage climate-related risks and opportunities. We realised the significance of monitoring,
measuring, and reporting energy and emissions, and we have started tracking and disclosing on our GHG emissions pertinent to the Group.

• Liquefied Natural Gas – Cubic metres (m³)

• Liquefied Petroleum Gas – Cubic metres (m³)

• Petrol Gas – Litres

• Electricity – Megawatt hours (MWh)

• Direct (Scope 1) GHG Emissions – Tonnes of carbon dioxide equivalent (tCO₂e)

• Indirect (Scope 2) GHG Emissions – Tonnes of carbon dioxide equivalent (tCO₂e)

Sustainability Report 2025 19 Valuetronics Holdings Limited

GRI CONTENT INDEX

GRI STANDARD DISCLOSURE REFERENCE/DESCRIPTION
Statement of use Valuetronics Holdings Limited has reported the information cited in GRI Content index for the period of
from 1 April 2024 to 31 March 2025 (“FY2025”) with reference to the GRI standards 2021
GRI 1 GRI 1: Foundation 2021
GRI STANDARDS 2021
GENERAL DISCLOSURE
GRI 2: General 2-1 Organisational details Sustainability Report 2025, page 3
Disclosures
2-2 Entities included in the organisation’s Sustainability Report 2025, pages 1-2
sustainability reporting
2-3 Reporting period, frequency and contact point Sustainability Report 2025, page 1
2-4 Restatements of information None
2-5 External assurance Sustainability Report 2025, page 1
2-6 Activities, value chain and other business Sustainability Report 2025, page 3
relationships
2-7 Employees Sustainability Report 2025, pages 11-12
2-8 Workers who are not employees Sustainability Report 2025, pages 11-12
2-9 Governance structure and composition Annual Report 2025, pages 9-11, 16-18
2-10 Nomination and selection of the highest Annual Report 2025, pages 20-21
governance body
2-11 Chair of the highest governance body Annual Report 2025, pages 18-20
2-12 Role of the highest governance body in Sustainability Report 2025, page 2
overseeing the management of impacts
2-13 Delegation of responsibility for managing Sustainability Report 2025, page 2
impacts
2-14 Role of the highest governance body in Sustainability Report 2025, page 2
sustainability reporting
2-15 Conflicts of interest Annual Report 2025, page 13
2-16 Communication of critical concerns Sustainability Report 2025, page 5
2-17 Collective knowledge of the highest Sustainability Report 2025, page 2
governance body
2-18 Evaluation of the performance of the highest Annual Report 2025, page 22
governance body
2-19 Remuneration policies Annual Report 2025, page 23
2-20 Process to determine remuneration Annual Report 2025, pages 24-26
2-21 Annual total compensation ratio Due to confidentiality, Valuetronics is unable
to disclose this information.
2-22 Statement on sustainable development strategy Sustainability Report 2025, pages 1-2
2-23 Policy commitments Sustainability Report 2025, pages 7-18
2-24 Embedding policy commitments Sustainability Report 2025, pages 7-18
2-25 Processes to remediate negative impacts Sustainability Report 2025, page 14
2-26 Mechanisms for seeking advice and raising Sustainability Report 2025, pages 8, 14
concerns
2-27 Compliance with laws and regulations Sustainability Report 2025, pages 14-15
2-28 Membership associations None
2-29 Approach to stakeholder engagement Sustainability Report 2025, page 5
2-30 Collective bargaining agreements None
Valuetronics Holdings Limited 20 Sustainability Report 2025

GRI CONTENT INDEX

GRI STANDARD DISCLOSURE REFERENCE/DESCRIPTION
GRI STANDARDS 2021
GENERAL DISCLOSURE
GRI 3: Material Topics 3-1 Process to determine material topics Sustainability Report 2025, page 6
2021
3-2 List of material topics Sustainability Report 2025, page 6
3-3 Management of material topics Sustainability Report 2025, pages 6-15
GRI 201: Economic 201-1 Direct economic value generated and Sustainability Report 2025, pages 7-8
performance 2016 distributed
GRI 205: Anti- 205-3 Confirmed incidents of corruption and actions Sustainability Report 2025, page 8
corruption 2016 taken
GRI 302: Energy 2016 302-1 Energy consumption within the organisation Sustainability Report 2025, page 9
302-4 Reduction of energy consumption Sustainability Report 2025, page 9
GRI 305: Emissions 2016 305-1 Direct (Scope 1) GHG emissions Sustainability Report 2025, page 10
305-2 Energy indirect (Scope 2) GHG emissions Sustainability Report 2025, page 10
GRI 308: Supplier 308-1 New suppliers that were screened using Sustainability Report 2025, page 10
Environmental environmental criteria
Assessment 2016
GRI 401: Employment 401-1 New employee hires and employee turnover Sustainability Report 2025, page 12
2016
GRI 403: 403-1 Occupational health and safety management Sustainability Report 2025, pages 12-13
Occupational health and system
safety 2018
403-5 Worker training on occupational health and Sustainability Report 2025, pages 12-13
safety
403-9 Work-related injuries Sustainability Report 2025, pages 12-13
GRI 404: Training and 404-1 Average hours of training per year per Sustainability Report 2025, page 13
Education 2016 employee
404-2 Programs for upgrading employee skills and Sustainability Report 2025, page 13
transition assistance programs
GRI 405: Diversity and 405-1 Diversity of governance bodies and employees Sustainability Report 2025, page 11
equal opportunity 2016
GRI 406: Non- 406-1 Incidents of discrimination and corrective Sustainability Report 2025, page 11
discrimination 2016 actions taken
GRI 408: Child Labor 408-1 Operations and suppliers at significant risk for Sustainability Report 2025, page 12
2016 incidents of child labor
GRI 413: Local 413-1 Operations with local community engagement, Sustainability Report 2025, page 13
Communities 2016 impact assessments, and development
programs
 VALUETRONICS HOLDINGS LIMITED

VALUETRONICS HOLDINGS LIMITED

SUSTAINABILITY REPORT

2025
Unit 9-11, 7/F Technology Park, No. 18 On Lai Street,
Shatin, New Territories, Hong Kong
T 852 2790 8278 I F 852 2304 1851
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