Shouhui Group Limited Releases First Comprehensive ESG Report for 2025

Key Highlights: Robust ESG Governance, Strong Financial and Operational Performance, and Strategic Sustainable Initiatives

Shouhui Group Limited (02621.HK) has published its inaugural Environmental, Social and Governance (ESG) Report for 2025, offering investors and stakeholders unprecedented transparency into its governance, risk management, operational strategies, and sustainability commitments. This publication marks a significant step in its listing requirements on the Hong Kong Stock Exchange, aligning with global best practices and reinforcing its commitment to long-term value creation.

1. ESG Governance and Board Oversight

• The Board assumes ultimate responsibility for ESG strategy and reporting. A three-tier ESG governance structure is in place: Board → ESG Leading Group → ESG Working Group. The Leading Group, led by the General Manager, is charged with risk identification, policy formulation, and progress reporting.
• Material ESG issues are reviewed and adjusted annually, ensuring the company’s ESG priorities remain timely and relevant. The Board holds regular meetings to set, review, and align ESG targets with overall business strategy.
• The Board composition as of year-end 2025: 9 Directors (4 executive, 2 non-executive, 3 independent non-executive), with a focus on diversity (33% independent, 11% female).

2. Financial and Operational Performance—Key Quantitative Disclosures

• Revenue Model: Shouhui’s core income is derived from insurance product distribution commissions, supported by a digital platform ecosystem (Xiaoyusan, Kachabao, Niubao 100) serving consumers, agents, and business partners.
• Scale and Reach: Over 100 licensed insurance company partnerships, 32,269 insurance agents, and 1,493 business partners. Insurance user service satisfaction remains exceptionally high at 97.31%.
• Employee Metrics: 732 employees, 52% female, 25 average training hours per employee, and a 77.76% training rate. Zero work-related injuries or fatalities were reported.
• ESG Compliance: 100% anti-corruption training coverage; zero data breaches or lawsuits related to corruption and bribery.
• Intellectual Property: 13 patents, 37 software copyrights, 257 registered trademarks (including Hong Kong), and 29 domain names.

3. Awards and Industry Recognition

• In 2025, the Group received multiple prestigious awards, including the “InsurStar Innovative Intermediary,” “China Insurance Dingfeng Awards Outstanding Claims Service Case,” and recognition for digital transformation and innovation. These accolades reinforce Shouhui’s leadership and innovation capabilities within the Chinese insurance intermediary sector.

4. Governance, Compliance, and Risk Management

• Shouhui maintains a robust compliance framework, strictly adhering to PRC and HKEX regulations. The Audit, Remuneration, and Nomination Committees ensure checks and balances.
• The company operates a “three lines of defense” risk control system, covering business, finance/compliance, and internal audit, ensuring comprehensive risk oversight in areas such as financial reporting, data security, and human resources.
• A zero-tolerance approach to corruption is enforced, with policies covering anti-corruption, anti-fraud, and anti-money laundering.
• Privacy and Data Security: There were no data breaches in 2025. The company’s core business system is certified at Class III Information System Security, with stringent protocols for data collection, access, and disaster recovery.
• Intellectual property rights are rigorously protected, with no material infringement claims reported.

5. Social Responsibility and Human Capital Initiatives

• The Group emphasizes talent development with a four-stage growth training program, continuous employee care, and competitive compensation/benefits—including health checks, group insurance, and equity incentives.
• Social insurance and statutory benefits are provided as required by law, and additional support for talent housing is offered.
• Shouhui actively contributes to public welfare, notably launching lectures on adolescent mental health and facilitating employee charitable donations.

6. Customer Service and Product Innovation

• The company has transitioned to a service-driven business model, pioneering a “Compensation for Delays” mechanism in claims settlement and underwriting. Over 36,000 rapid claims cases were processed in 2025, directly enhancing customer trust and operational efficiency.
• Notable product launches include new pension annuities and “Chaojimali 13” critical illness insurance, which integrates AI and health management services, and was highlighted in industry reports.
• Strategic partnerships with leading insurance companies and influencers amplified the reach and reputation of flagship products.

7. Technology, R&D, and Industry Leadership

• Shouhui has built nine independent intelligent systems, enabling a seamless digital insurance ecosystem (consultation, purchase, underwriting, and claims assistance). R&D is incentivized through innovation competitions and technical sharing.
• The Group demonstrated industry leadership through participation in summits and university research collaborations, notably the Health and Pension Insurance Coverage Index with Nankai University.

8. Supplier and Partner Management

• A sustainable, transparent supplier management process is in place, with a strong emphasis on green procurement and responsible sourcing.
• Insurance agents and business partners undergo strict licensing, training, and performance evaluation, ensuring compliance and service quality.

9. Environmental Management, Climate Strategy, and Green Operations

• Shouhui’s operations are inherently low-carbon, with no direct GHG emissions or vehicles. Office energy consumption is rigorously managed, with a 2025 total of 269,053 kWh electricity (367.56 kWh/employee) and 367 m³ water (0.5 m³/employee).
• Paper usage was reduced by 75% in 2025, surpassing the targeted 10% reduction.
• Waste generation was low: 65 kg hazardous (0.09 kg/employee) and 22.6 tonnes non-hazardous (0.03 t/employee).
• The Group has set clear environmental targets for 2030: a 20% reduction in energy consumption density, an 80% reduction in paper usage, and a 30% cut in GHG emissions density. Some targets (water reduction) were missed due to operational changes, but other metrics exceeded expectations.
• Climate risks and opportunities are actively managed, with comprehensive risk mapping, mitigation strategies, and opportunity identification (e.g., digitalization for energy/resource savings, green product positioning).

Potentially Price-Sensitive or Shareholder-Relevant Matters

• First ESG Report Filing: This inaugural report, and its full compliance with HKEX ESG Code, positions Shouhui for potential inclusion in ESG indices and could attract new institutional investors with sustainability mandates.
• Operational Excellence and Brand Recognition: Industry awards, outstanding customer satisfaction, and zero legal or compliance incidents are likely to bolster market confidence.
• Innovation and Product Leadership: Launches of new insurance products with integrated digital and health management features may drive revenue growth and market share, particularly as China’s insurance sector digitizes.
• Climate and ESG Targets: Clear, quantifiable environmental and social targets ahead of regulatory trends may provide a competitive advantage and demonstrate forward-looking risk management.
• Zero Major Incidents Reported: The absence of litigation, data breaches, or compliance failures de-risks the investment case, which is especially relevant for long-term and ESG-focused investors.

Conclusion

Shouhui Group Limited’s 2025 ESG Report provides a comprehensive overview of its governance, operational excellence, innovation, and sustainability leadership. The report’s depth and transparency, combined with tangible metrics and ambitious future targets, may serve as positive catalysts for investor sentiment and share valuation—particularly as ESG considerations become increasingly central to capital markets and regulatory regimes in China and beyond.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult professional advisors before making any investment decisions. The content above is based on publicly disclosed company reports and is not warranted for completeness or accuracy. Past performance and reported metrics do not guarantee future results.

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