June 2021
CIC has not carried out any audit mission for nor commissioned any consultancy services with AluHouse International Trading Company Limited and there is no established relationship (financial or others) between CIC and AluHouse International Trading Company Limited.
The opinion provided herein is an independent opinion on the sustainability credentials and management of the financial instrument, based on the information made available to CIC. CIC has neither interviewed any of the AluHouse International Trading Company Limited’s employees, nor performed any on-site assessment and tests to check the accuracy of the information provided by AluHouse International Trading Company Limited. The accuracy, comprehensiveness and trustworthiness of the information collected rests with AluHouse International Trading Company Limited. CIC, in providing this opinion, has not certified the effectiveness, the quality or the irreversibility of the assets to be financed by the sustainable financing instrument. AluHouse International Trading Company Limited is fully responsible for attesting the compliance with its commitments defined in its policies, for their implementation and monitoring. The opinion delivered by CIC neither focuses on the financial performance of AluHouse International Trading Company Limited, nor on the effective allocation of its proceeds. CIC is not liable for the consequences arising if third parties use this opinion either to make investment decisions or to make any kind of business transaction.
The opinion provided by CIC on AluHouse International Trading Company Limited can only be used by AluHouse International Trading Company Limited and the Financial Institution. The distribution and publication are at the discretion of AluHouse International Trading Company Limited, subject to CIC’s approval.
Application no. | SFCS-APPLY-2021-016 |
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Certificate no. | SFCS-2021-004 |
Date of application | 2021.12.13 |
Company name | AluHouse International Trading Company Limited |
Business registration no. | 68201242 |
Company profile | AluHouse is one of the world's leading building technology company which specializes in the R&D, design, production and construction of modular integrated construction (MiC). Founded in 2014 with its headquarters in Hong Kong, AluHouse was rooted in an industrial base in Zhaoqing, China, covering an area of around 6.5km2. Our major products include MiC buildings and houses, aluminum pedestrian bridges, aluminum home furnishing system as well as aluminum automatic scaffolding system. Our business lines cover sectors such as tourism, retailing, residential, commercial and public utility industry where we provide users with premium prefabricated holiday homes, apartments, site office, showroom, student/staff dormitory, retail shops, transitional housing, hospitals, quarantine facilities and elderly homes, etc. We are committed to creating a smart city built from sustainable resources, providing more efficient and better living options for our descendants and promoting a green world for the future generations. |
Sustainable financing instrument | Green Loan |
Application level | Project Level |
AluHouse International Trading Company Limited has confirmed the proceeds will be used for the specified Project Categories that meet the eligibility criteria stated:
Project Categories | Circular Economy Adapted Products, Production Technologies and Processes |
Eligibility Criteria | Modular Integrated Construction (MiC) is commonly used in Hong Kong. The implication of MiC method can relief the labour stockage, and reduce site wastage, and the utilisation of recyclable construction material also provide a high degree of production quality control, improve construction productivity rate. |
AluHouse International Trading Company Limited has confirmed that the selected Project Categories and Eligibility Criteria are in line with the following internationally recognized frameworks across financial markets:
Frameworks
AluHouse International Trading Company Limited has also confirmed the following purposes of the proceeds:
Purpose of financing
AluHouse International Trading Company Limited has identified the below project(s) as eligible green projects which meet the eligible criteria:
Project name | various MiC Projects in Hong Kong |
Location | Hong Kong |
Project description | Transactional housing High-rise student accommodation High-rise staff quarter High-rise elderly home Hospital School Aluminium pedestrian bridge |
Highlights of green elements and estimated environmental impact | Sustainability and environmental friendliness Reduce dust and noise nuisance Minimise construction waste by 90% Improve construction waste management 100% recyclable aluminium materials Modules can be dismantled and relocated to for other projects. Reducing the construction time MiC can save 50% of the total project construction time Reduce the production period by constructing different modules simultaneously in the factory Reduce the impact of adverse weather during construction period Save up to 25-40% of labours which can relieve pressures on labour shortage and ageing workforce in construction industry in Hong Kong. Improve working environment and enhance the construction site safety Protects workers against adverse weather Reduce the number of on-site accidents Reduce risk of slipping and tripping of site personnel |
Aluhouse proposes to raise Green Loan and to use the proceeds to fulfil contract requirement that falls into the Green Loan Principle project categories, which is eco-efficient and/or circular economy adapted products, production technologies and processes category.
AluHouse confirmed the MiC projects will be under Eco-efficient and/or circular economy adapted products, production technologies and process in GLP. MiC can reduce dust pollution, noise nuisance and construction waste. The MiC projects have significant environmental impact and direct impact in construction site.
Sustainability and environmental friendliness
Reduce dust and noise nuisance
Minimise construction waste by 90%
Improve construction waste management
100% recyclable aluminium materials
Modules can be dismantled and relocated to for other projects.
Reducing the construction time
MiC can save 50% of the total project construction time
Reduce the production period by constructing different modules simultaneously in the factory
Reduce the impact of adverse weather during construction period
Save up to 25-40% of labours which can relieve pressures on labour shortage and ageing workforce in construction industry in Hong Kong.
Improve working environment and enhance the construction site safety
Protects workers against adverse weather
Reduce the number of on-site accidents
Reduce risk of slipping and tripping of site personnel
Based on above information, we concluded that AluHouse’s MiC project bring environmental and social benefit in Hong Kong, which provide environmental friendly construction method.
To ensure that the projects financed by the sustainable financing instrument meet the eligible criteria, AluHouse International Trading Company Limited has established an evaluation and selection process with the following key elements:
Evaluation and selection
AluHouse will establish a business direction and market development goal with top management on the annual operation meeting to select the potential MiC project. In the project preparation stage, the project management team, financial department, and relevant department will carry out project preliminary evaluation in terms of resources and budgeting.
AluHouse’s Managing Director will be in-charge and monitor the project, and the Financial Manager will assist Managing Director for supervising and managing the overall evaluation process.
We have reviewed the evidence and can confirm that the eligible project categories and governance framework for project selection fulfils the criteria defined by AluHouse’s Sustainable Finance Framework.
AluHouse International Trading Company Limited has provided information regarding the internal governance process through which the company can track allocation of funds towards green projects. AluHouse International Trading Company Limited will establish a register of funds to contain the following information:
Information
Pending the full allocation of the proceeds, AluHouse International Trading Company Limited intends to hold and/or invest the balance of proceeds not yet allocated in accordance with n/a
We have reviewed evidence showing the AluHouse’s governance on management of proceed. The Financial Manager will be responsible for internal governance on proceeds management under the guidance of the bank, and the Financial Department will oversee the utilisation of proceeds in order to ensure the payment is paid on the eligible projects, which will be recorded in Annual Financial Report. We can confirm that Aluhouse has governance process to ensure the traceability.
AluHouse International Trading Company Limited is committed to transparent reporting and will publish Depends on the requirement from the bank within one year from the date of issuance of each sustainable financing instrument and annually thereafter until the full allocation of the proceeds. The report will consist of information on the allocation of the proceeds and the environmental impacts of the projects.
Allocation Report
In terms of impact reporting, AluHouse International Trading Company Limited will report on relevant environmental metrics of the projects to which the proceeds have been allocated in line with the technical requirements.
Project Categories | Environmental Performance Indicator |
Metrics | Wastage Resource consumption Pollution Recyclable |
Methodologies | n/a |
Project Categories | Social Performance Indicators |
Metrics | Health and safety Employee’s welfare Impact on construction industry Impact on local community |
Methodologies | n/a |
We confirmed that AluHouse has committed to continue to report the use of proceed on an annual basis in Financial Report. The information will report the key transaction information, the aggregate amount of proceeds of each transaction earmarked to eligible projects, remaining balance of unallocated proceed, a list of eligible projects, and social & environmental performance indicators
Use of proceeds | Compliant |
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Project evaluation and selection | Compliant |
Management of proceeds | Compliant |
Reporting | Compliant |
Based on the above assessment, we recommend to approve the application (Application no.: SFCS-APPLY-2021-016, Certificate no.: SFCS-2021-004) of the CIC Sustainable Finance Certification Scheme with validity from 12-06-2021 to 11-06-2023 .