Risecomm Group is a fabless research and development oriented technology company specialized in the design, development and sale of proprietary PLC-related system-on-chip (“SOC”) integrated circuit (“IC”) and software. The Group adopts fabless production model, under which, instead of in-house manufacturing IC chipsets, we source integrated circuit chipsets, as our main raw materials, from IC chipsets suppliers which provide application-specific ICs based on our proprietary design we developed. Unlike general manufacturing enterprises, we assemble our products with the adoption of fabless production model, which greatly reduces the negative impacts on the environment during the course of operation and production.

ENVIRONMENTAL PROTECTION

The Group has been putting efforts in environmental protection and paying attention to the sustainable construction of environmental infrastructure to improve the efficiency of equipment and facilities. It carries out promotion, education and training for its employees in order to reduce waste generation in the ordinary course of business. Also, the Group has adopted various effective measures and monitoring procedures which require all departments to strictly comply with internal management system in relation to environmental protection, ensure compliance with laws and regulations and fulfilment of responsibilities in environmental protection. Through the following initiatives, the Group has established, and continuously operated and updated, a strong environmental responsibility governance system.

Emissions

The Group has obtained the ISO14001 environment management system certification, which indicates that our operation and management of R&D, production and sales have achieved internationally recognised standards. The Group has also formulated the Waste Management Policy to establish regulations and guidance on waste disposal and manage and monitor the effectiveness of targeted measures for different kinds of waste. Moreover, we act in accordance with the “Control Procedures for Monitoring and Measurement of Environment, Occupational Health and Safety”, and regularly engage inspection bodies to conduct accurate monitoring of emissions and provide monitoring reports, so as to keep abreast of the Group’s performance in environmental protection and formulate measures for improvement.

During the Reporting Period, the Group did not receive any notice or warning in relation to pollution in respect of its production, nor had the Group been subject to any fines, penalties or other legal actions by government agencies in the PRC resulting from any non-compliance with any environmental protection laws and regulations in the PRC.

Sewage reduction

The Group does not generate industrial sewage as water is not required in its production process. Sewage generated by the Group is mainly domestic sewage, which will be discharged to municipal sewage system after primary treatment in regional septic tank, and then undergone advanced treatment in regional sewage treatment plant. We have also renovated our water-saving tanks installed in washrooms and carried out other measures to reduce domestic sewage discharge.

In 2017, the Group had engaged Shenzhenshi Zhengyuan Test Company (深圳市政院檢測有限公司) (“ZYT”) to conduct tests on domestic sewage in the assembly hubs located in Yantian, Shenzhen and Changsha, Hunan. The test results indicated that it is in compliance with the requirements of relevant national regulatory authorities.

Greenhouse gas emission

The Group’s production activities mainly use electricity to maintain machine operation, general lighting and indoor temperature control etc. As such, the main source of our carbon emission is greenhouse gases (“GHG”) generated from electricity consumption. Besides, our products themselves are energy-saving and environmentally-friendly products. We have installed our self-developed air conditioner controllers and energy saving control switches in all office areas and plants. Such on-site application allows backstage control of the usage of lighting and air-conditioners and thus effectively saves electricity resources. The Group has promoted this series of energy-saving products among its customers and achieved desired energy-saving effect.

Treatment of harmful exhaust gases

The Group’s major air pollutant emissions are welding fumes produced in welding work stations.   Immaterial amount of fumes is produced during welding and will be discharged into high-altitude air after being collected and filtered according to the requirements from the environmental protection authority. Discharging pipes are installed above each welding work station of production lines in the assembly hub in Yantian, Shenzhen. Welding gas will be sucked into the pipes and discharged into high-altitude air after being filtered and purified. There is also testing facility for testing welding gas in the pipes. The Group has established a routine maintenance system. Discharging pipes in the factories are regularly cleaned.

In 2017, the Group had engaged ZYT to conduct tests on exhaust gases in the assembly hubs located in Yantian, Shenzhen and Changsha, Hunan. The testing results indicated that the quantity of exhaust gas generated was insignificant and the discharge of which was qualified and complied with the requirements in the Air Pollution Prevention Law of the PRC (中華人民共和國大氣污染防治法) and were inspected by relevant regulatory authorities.

Hazardous and non-hazardous wastes

Solid waste (non-hazardous) generated by the Group is mainly lead-free tin slag generated in the production process, a small amount of packaging materials, and office wastes generated during operation. Lead-free wastes can be recycled by professional recyclers and the amount of wastes generated during the Reporting Period was relatively immaterial. While the wastes reach a certain amount for recycling, we will engage professional recycler. 

The Group has a strict classification system for different types of wastes. Wastes are separately stored and handled with the ledger for record. Waste bins are set up according to the type of wastes and are placed in appropriate areas. Wastes generated by each department are classified and threw into designated waste bins according to the Waste Management Policy. Qualified recyclers are engaged for disposal, thereby reducing the impacts on the nature.  Recyclable wastes are recycled while hazardous wastes (e.g. spent fluorescent lights and batteries) are collected in specific site and, when reached a certain amount, will handed over to outsourced parties with appropriate qualification to dispose. 

The Group promotes the use of various softwares in relation to electronic mobile office to reduce the use of paper. In 2017, electronic mobile system such as the R&D projects “Product Life Cycle Management” and “Enterprise Resource Planning” were used for internal approval procedure, which further expanded the paperless network and the coverage of mobile office. In 2017, paperless systems were established for internal communications such as employee learning and development.