PHANCY released its third Environmental, Social & Governance (ESG) Report, covering the period 1 Jan – 31 Dec 2025 and encompassing the parent company and domestic operating subsidiaries. Key disclosures are as follows:
Governance & Risk • Board oversight: 11 directors (3 executive, 3 non-executive, 4 independent, 1 employee representative) met nine times; all Board members completed anti-corruption training. • ESG structure: a three-tier system—Board, ESG Working Group (CFO-led) and business units—monitors climate, compliance and data security risks. • Integrity: zero cases of bribery, fraud or data breaches; 100 % of 346 suppliers signed compliance undertakings.
Technology & Innovation • R&D expenditure reached RMB 2.34 billion, equal to 32.8 % of revenue; 392 R&D staff accounted for 63.3 % of the 619-strong workforce. • Intellectual-property portfolio: 610 patents (388 utility models, 190 inventions, 32 designs) and 763 trademarks/registrations. • PHANCY remained China’s machine-learning platform market leader for the seventh consecutive year (IDC) and entered the “Forbes China AI Tech Enterprises Top 50”.
Environment • Electricity consumption: 1.02 million kWh, translating to 541.81 tCO₂e (Scope 2); no Scope 1 emissions. • Water use: 2,128 t; hazardous waste: 15.79 kg; non-hazardous waste: 2.62 t. • Certified to ISO 14001; set a 5 % reduction target for greenhouse-gas intensity (vs 2023 baseline) by 2028.
Employees • Workforce profile: 395 men, 224 women; average training 6.6 hours per employee. • Turnover: 252 employees, or 20.6 %; no work-related fatalities in the past three years. • Benefits: full statutory “five social insurances and one housing fund”, commercial medical insurance, flexible work arrangements and dedicated facilities (gym, nursing room, AEDs).
Supply Chain • Supplier base: 334 domestic, 12 offshore/other regions; 100 % underwent ESG screening. • Annual evaluation showed all suppliers scored ≥80; none were grey-listed.
Social Contribution • Charitable donations totalled RMB 2.00 million, directed mainly to disaster-relief efforts following Beijing’s 2025 extreme rainfall.
PHANCY states it will continue aligning product development with the national “dual-carbon” agenda, expand scenario-based AI solutions and refine ESG disclosure in accordance with Hong Kong Stock Exchange requirements.