兴通股份:兴通海运股份有限公司2024年度环境、社会及公司治理（ESG）报告（英文版）

Compliance Leadership: Low-Carbon Enhanced Defense United Cooperation: Shared Responsibility:

About This Message from the About Xingtong Ensuring Stable and Long- Transformation: Leading Line: Safeguarding Building Sustainable Seeking Collaborative Growth Afterword to this

XINGTONG SHIPPING CO. LTD. ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT Repor General Manager Shipping term Development the Future of Shippin the Safety of Shipping Development Together and Mutual Prosperity Report

关于本报告

A关b于ou本t 报Th告is Report Data Sources

Data sources used in this report include public data from government agencies the actual operational data annual financial

This is the third Environmental Social and Governance Report (the “ESG Report”) issued by Xingtong Shipping Co. Ltd. (“thedata internal statistical reports of the Company third-party questionnaire surveys third-party evaluations or interviews etc.Company”). In the principles of objectivity standardization transparency and comprehensiveness this report provides a detailed

The financial data in this report is expressed in RMB. For any discrepancy between this report and the financial statements

disclosure of the Company’s practices and performance in environmental social and governance for the year 2024.the financial statements shall prevail.报报告告范范围围

R报e告po范rt围ing Scope Confirmation and Approval

This report covers Xingtong Shipping Co. Ltd. and its subsidiaries. Unless otherwise specified the scope of this report is

consistent with that of the Company's Annual Report. For ease of expression and readability “Xingtong Shipping Co. Ltd.” This report was approved by the Company's Board of Directors on 2432025 and was subsequently released in conjunction

is referred to as “Xingtong Shipping” “Xingtong” “the Company” or “We” and “XT-IMC Shipping Co. Ltd.” is referred to as with the Annual Report. The Board pledges to exercise oversight over the contents of this report ensuring its absence of any

“XT-IMC” in this report. false records or misleading representations and assuming responsibility for its truthfulness accuracy and completeness.This report is published in Chinese with the English version derived from the Chinese translation. In the event of any discrep-

ancies between the two versions the Chinese version shall prevail.R时时e间间po范范rt围围ing Period

This re时port间 cov范ers t围he period from January 1 2024 to December 31 2024 (the “Reporting Period”). To improve the com-

parability and completeness some sections of this report may be appropriately referred to previous years or contain for-

ward-looking statements. This report is released on an annual basis consistent with the financial year. Access to this Report

This report is available for review and download on the official websites of the Company (https://www.xtshipping.com) and

the Shanghai Stock Exchange (http://www.sse.com.cn).P编编r制制ep依依ar据据ation Basis编制依据

··●C orporate Sustainability Disclosure Standards—Basic Standards (for Trial Implementation)

·●S hanghai Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 14 - Sustainability Report (for Trial Imple-·

·men

tation)

·●C hinese Academy of Social Sciences (CASS) Guidelines for Preparing Corporate Social Responsibility Reports in China

·(CA

SS-ESG 6.0)

·●G lobal Reporting Initiative Sustainability Reporting Standards (GRI Standards) (2021)·

·●U N Sustainable Development Goals (SDGs)

●Sustainability Accounting Standards Board (SASB) Standards

01 02Compliance Leadership: Low-Carbon Enhanced Defense United Cooperation: Shared Responsibility:

About This Message from the About Xingtong Ensuring Stable and Long- Transformation: Leading Line: Safeguarding Building Sustainable Seeking Collaborative Growth Afterword to this

Message Ⅲ . Upgrading the Safety System and Our fleet is steadily evolving to be more youthful high-end Strengthening the Safety Foundation low-carbon and environment-friendly. This not only enhances

Across the continents and oceans around the world Xingtong’s our business competitiveness promotes cost reduction and

from General efficiency improvement but also effectively assists in achiev-ships sail day and night tirelessly pursuing new horizons. Xingtong Shipping taking the continuous improvement of safe- ing green and environmentally friendly shipping and realizing

ty management capabilities as an important competitiveness for the “carbon peaking and carbon neutrality” strategic goals.Manager With the ebb and flow of tides Xingtong’s people remain steady sustainable development continuously upgrades and optimizes and persistent constantly forging new milestones. its safety management system by absorbing the globally leading

safety management experience and integrating new-generation

digital information technologies. As of the end of the Reporting Ⅵ . Venturing to Pursue Dreams andPeriod the Company has been honored as a “Safety and Integri- Crafting a Bright Future for XingtongSince its establishment Xingtong Shipping has been devoted to the water transport of bulk liquid dangerous cargoes. We are commit- ty Company” for 7 consecutive years with a total of 8 ships rec- Shipping

ted to becoming a “world-class domestically leading integrated service provider for chemical supply chain”. In recent years China has ognized as “Safety and Integrity Ships” and 12 captains as “Safe-introduced policies to strengthen its position as a “Marine Power” and “Transportation Power” promote the “dual circulation” develop- ty and Integrity Captains”. In 2024 the Company received andment pattern and advance the Belt and Road Initiative which has given the water transport logistics industry a crucial strategic mis- passed a total of 70 inspections from the Ship Inspection and Upholding the talent philosophy of “making Xingtong peoplesion. In 2024 amidst the increasingly complex international environment Xingtong Shipping embraced sustainable development as an Reporting Program (SIRE) and the Chemical Distribution Institute better and gathering outstanding people at Xingtong” we

internal driving force optimized business layout and expanded the fleet scale. We provided safe and efficient service and promoted the (CDI). In 2024 the Company officially joined the Shell Marine are committed to strengthening team building and creating

high-quality and sustainable development of the Company. In doing so we can create value for customers broaden value boundaries Partner in Safety Programme. This marks an important milestone “Magnetic Xingtong”. In 2024 we continued to strengthen

for investors support employees' dreams and take on our social responsibilities and missions. in the Company's efforts to benchmark and establish internation- talent development and recruitment and established a pro-

al safety management systems. fessional and career-oriented talent pipeline. We also paid

constant attention to the physical and mental health of em-

Ⅰ . Sailing Forward Together and Exploring the Blue Ocean Ahead Ⅳ . Valiantly Advancing with Steady

ployees and truly implemented employee care by improv-

ing benefits building cultural facilities and organizing visits

Progress and Strictly Adhering to Com- to the families of crew members. We strive to provide every

Under the national strategies of building China into a “Marine Power” and “Shipping Power” the Company seized the opportunities of pliance Governance Xingtong employee with an inclusive and open growth envi-

the times. Guided by the “1+2+1” development strategy we focused on expanding and strengthening domestic liquid hazardous cargo ronment and work together with them to contribute to the

transportation advanced clean energy transport and international shipping as our two pillars and built a digital platform to fuel our value creation of the Company and the advancement of the Xingtong Shipping always adheres to compliant and standardized

growth. These efforts continuously solidify our leadership in domestic chemical transportation expand our presence in the international shipping sector.operations and continuously strengthens its governance foun-

chemical transportation markets and strengthen our main hazardous chemicals transportation business. dation. In 2024 the Company focused on key fields such as sus-

tainable development management risk management and com-

pliance enhancement. We continuously improved and perfected

Keeping pace with the industry’s shift toward green low-carbon and smart shipping the Company optimizes the fleet structure ac- our corporate governance structure and internal control systems Setting sail with innovation and steering with mission Xing-

celerates the elimination of old ships and strives to build a fleet that is high-end large-scale young green and intelligent. In October strengthened internal audit supervision comprehensively pre- tong Shipping will continue to practice the philosophy of

2024 we became the first shipping enterprise with stainless steel domestic chemical tankers exceeding 10000 DWT. Throughout the vented and controlled risks and enhanced our refined manage- sustainable development continue to explore and open up a

year five new high-end stainless steel chemical tankers were put into operation with the capacity of 49700 DWT. As of the end of ment capabilities. These efforts strengthen our ability to manage new voyage and draw a more brilliant blueprint for the global

the Reporting Period we have operated 37 ships with a total capacity of 429500 DWT and taken the largest market share of chemical with precision and empower us to implement our strategies and shipping industry. In the wave of the global economy we will

tankers in China. Moreover we strode into the international shipping sector. By late 2024 our 8 foreign trade ships with a total capacity forge toward a brighter future efficiently. continuously deepen international cooperation expand green

of 115700 DWT had been put into operation and 6 foreign trade ships with a total capacity of 129600 DWT were under construction. shipping and promote intelligent transformation to deliver

more efficient safer and more environment-friendly service.During the Reporting Period the total freight volume of the Company reached 13.14 million metric tons with an increase of 18.38%.The We firmly believe that through unremitting efforts and con-

international business of the Company as important growth driver achieved a cargo volume of over 1 million tons for the year show- Ⅴ . Practicing Low-Carbon Paths and tinuous innovation Xingtong Shipping will play an even more

ing a positive development trend. In the future the Company will continue to enhance its core competitiveness and market influence. Supporting Green Shipping significant role in the global chemical logistics sector and

Following the trends advancing innovation and striving forward through difficulties we will base Quanzhou as the headquarters while make greater contributions to the prosperity and develop-focusing on advancing the development of the branches in Shanghai and Singapore. We will also fully leverage the advantages of the Upholding the development philosophy of being “green intelli- ment of both China and the world.Hainan Free Trade Port and Hong Kong and continuously provide first-class services to global customers to enhance the influence of gent and efficient” Xingtong Shipping resolutely follows the

the “Xingtong” brand in international markets. low-carbon development path advocated by China. In 2024 the General Manager Xingtong Shipping Co. Ltd.Company commenced the building of two 25900-DWT meth-

anol dual-fuel stainless steel chemical tankers and signed ship-

building contracts for two similar ships. We actively implemented

vessel energy-saving optimization and energy consumption man-

Ⅱ . Innovating Cooperation Model and Achieving Win-Win Results agement by installing energy-saving devices on existing ships.The Company has signed a strategic cooperation framework agreement with C&D and established a joint venture with Xiamen Jianfa

Supply Chain Logistics Technology Co. Ltd. (a wholly-owned subsidiary of C&D) aiming to plan the entire supply chain cooperation

in international chemical logistics. Sharing resources and prioritizing opportunities we and C&D will enhance our respective competi-

tiveness in the “going global” strategy and achieve win-win cooperation. We also will gradually shift from “owning ships” to “controllingships” and continuously expand the scale of the company's fleet.

03 04Compliance Leadership: Low-Carbon Enhanced Defense United Cooperation: Shared Responsibility:

About This Message from the About Xingtong Ensuring Stable and Long- Transformation: Leading Line: Safeguarding Building Sustainable Seeking Collaborative Growth Afterword to this

Business Overview

Under the guidance and support of industry policies such as the “14th Five-Year Plan” for Water Transport Development the

Company with keen insight fully seizes the development opportunities of the inland water transport market and comprehen-

sively advances the “1+2+1” development strategy. The Company is unwaveringly focused on building a green and intelligent

maritime fleet. By continuously optimizing operational processes and introducing cutting-edge technology and equipment

we constantly enhance our comprehensive service capabilities and inject strong momentum into the green sustainable and

high-quality development of the shipping industry.On the one hand the Company firmly strengthens its domestic business foundation enhances existing advantages and ensures steady

growth in market share. On the other hand we actively venture into the blue ocean of international business with a pioneering and in-

novative attitude precisely target market gaps and strive to create new competitive advantages in the international arena. In addition

the Company promotes digitalization and intelligent transformation in depth and fully utilizes advanced technologies such as big data

and artificial intelligence to empower enterprise development. With multidimensional coordinated efforts the Company is steadily mov-

ing toward the grand goal of becoming a world-class enterprise with outstanding industry influence and strong value creation ability.About Xingtong Shipping

Company Profile Improving Capacity Construction

Founded in December 1997 with a registered capital of RMB 280 million Xingtong Shipping Co. Ltd. is mainly engaged in overseas The Company continues to build a fleet of ships that are “larger younger higher-end greener and more intelligent” and contin-

shipping of bulk liquid dangerous cargoes. On March 24 2022 the Company was listed on the Shanghai Stock Exchange (Stock Code: uously expands the capacity to meet the diversified needs of customers with more excellent services. After years of growth the

603209). It is a Vice Director Unit of the Chemical Transportation Committee of China Shipowners’ Association a Vice President Unit of Company has become a leading enterprise in the domestic coastal bulk liquid chemical shipping industry occupying a prominent

Fujian Shipowners' Association a President Unit of Quanzhou Shipowners' Association and one of the three leading shipping enterprises position in the market segment. As of the end of 2024 the Company operates a total of 37 bulk liquid chemical tankers product

in Fujian Province. tankers and LPG carriers with a total capacity of 429500 DWT. Of these 29 are domestic ships with a combined capacity of

313800 DWT and 8 are international ships with a combined capacity of 115700 DWT (some of the Company’s Chinese-flagged

Xingtong Shipping is committed to “becoming a world-class domestically leading integrated service provider for chemical supply chain”.ships also engage in foreign trade business).Guided by the “1+2+1” strategic development plan we constantly explore our main businesses improve quality reduce costs and in-

crease efficiency. Additionally we focus on expanding and strengthening domestic liquid hazardous cargo transportation in coastal

regions advance clean energy transport and international shipping as our two pillars and built a digital platform to fuel our growth. We

are evolving into a comprehensive chemical supply chain provider to achieve high-quality development. Number of Ships in Operation Capacity of Ships in Operation

Embracing the new development trend of “being green low-carbon and intelligent” of the shipping sector Xingtong Shipping seizes

market development opportunities appropriately expands the fleet size and continuously improve safety management levels to achieve

high-quality and steady development. In recent years we have demonstrated consistent and robust growth with revenue and profits 31 359300ship

steadily increasing year by year. In 2024 we achieved an operating revenue of RMB 1.515 billion up by 22.43% year on year and the net deadweight tons

profit attributable to the shareholders of the listed company was RMB 350 million up by 38.95% year on year.Economic Performance

Operating Revenue Net Profit Attributable to Shareholders of（RMB million） the Listed Company （RMB million） 3 58700ship 3ship deadweight tons 11500

deadweight tons

20241514.74350.42

2023 1237.27 252.20 Chemical Product LPGCarrier Chemical Product LPGCarrier

Tanker Tanker Tanker Tanker

2022 784.77 206.25 37ships 429500deadweight tons

05 06Compliance Leadership: Low-Carbon Enhanced Defense United Cooperation: Shared Responsibility:

About This Message from the About Xingtong Ensuring Stable and Long- Transformation: Leading Line: Safeguarding Building Sustainable Seeking Collaborative Growth Afterword to this

The Company is primarily engaged in the waterway transport of bulk liquid dangerous cargoes worldwide including the shipping of

liquid chemicals refined oil and liquefied petroleum gas. The types of goods transported include paraxylene ethylene glycol benzene

phenol polyether polyols liquid caustic soda methanol aviation kerosene butadiene butane and other petrochemical products.The Company has always adhered to safe and environment-friendly operating procedures. With excellent cargo loss control capability

the Company has maintained a low cargo loss rate for years. Relying on our efficient and accurate shipping schedule management sys-

tem we meet the customer's requirements for “quality quantity and punctuality” for cargo transportation in all aspects. Moreover we

continuously consolidate the existing business territory and actively explore new business fields to achieve steady development.

2024996.96293.6623.891314.51

“XINGTONG BRIGHTNESS” Put into Operation in February

2023770.41323.0616.941110.41

2022534.95270.169.45814.56

200.00 400.00 600.00 800.00 1000.00 1200.00 1400.00 Total Volume

Chemical Tanker Product Tanker LPGCarrier “XINGTONG PROSPERITY” Put into Operation in February

Freight Volume（Unit: 10000 ton）

Building a High-End Fleet

With chemical transportation as its main strategy the Company continuously expands the capacity of chemical tanker fleet engaged in

domestic and foreign trade optimizes fleet structure and makes every efforts to improve the fleet competitiveness. During the Report-

ing Period the Company actively promoted capacity upgrades. 5 newly built domestic and foreign trade chemical tankers were put into “XINGTONG 59” Put Into Operation in August

operation increasing the fleet capacity by 49.7 KDWT and one old chemical tanker with a capacity of 5 KDWT was decommissioned

achieving fleet renewal and maintaining a youthful fleet.The Company actively responded to the development trend of green low-carbon and intelligent shipping steadily pushed forward the

construction planning of the Company's fleet and vigorously promoted the fleet to achieve high-end and green development. As of

the end of the Reporting Period the Company has 6 ships under construction with a capacity of 129.6 KDWT including two 13 KDWT

chemical tankers engaged in domestic and foreign trade and four 259 KDWT methanol dual-fuel stainless steel chemical tankers for for-

eign trade. On this basis the Company lays a solid foundation for future business expansion leads the industry's green transformation

with practical actions and contributes to sustainable development.“XINGTONG EXPLORATION” Put Into Operation in November

Case Study “XT EXPLORATION” Officially Put into Operation

On November 5 2024 the 13000-DWT duplex stainless steel chemical tanker “XT EXPLORATION” departed from Maple Leaf

Shipbuilding in Taizhou and officially went into operation. It carried 10000 tons of paraxylene on its maiden voyage from Ko-

rea to Chinese Taipei.As a new generation of green and intelligent high-end stainless steel chemical tankers “XT EXPLORATION” is equipped with

basic equipment such as ballast water treatment systems and aft shaft seals to meet the compliance requirements of various

emission control areas and water zones. It is also equipped with intelligent navigation intelligent energy efficiency an intelli-

gent engine room and an intelligent information integration platform. With the continuous addition of more high-end ships

the fleet of the Company is steadily becoming younger higher-end and greener to provide excellent transportation services

to global customers.“XINGTONG 17” Put Into Operation in November

07 08Compliance Leadership: Low-Carbon Enhanced Defense United Cooperation: Shared Responsibility:

About This Message from the About Xingtong Ensuring Stable and Long- Transformation: Leading Line: Safeguarding Building Sustainable Seeking Collaborative Growth Afterword to this

Expanding Global Reach

International Routes Domestic Routes

Actively responding to the national strategies of building China into a The Company continues to strengthen businesses Domestic Routes

“Marine Power” and “Shipping Power” as well as the Belt and Road Ini- operated for domestic trade focuses on expand-

tiative the Company has made significant strides in the international ing and strengthening the domestic coastal trans-

shipping sector. With long-term strategic vision and unremitting efforts portation of liquid cargo hazardous goods and

the Company has gradually built a perfect transportation network cov- deeply cultivates the domestic shipping market.ering the whole world. Now our ships mainly sail in Northeast Asia The main customers of the Company include Sino-

Southeast Asia the Middle East the Mediterranean Sea Northwest pec CNOOC Fujian United Petrochemical etc. The

Europe the Indian Ocean and South America with main customers Company’s transportation routes cover the coastal

including PETROBRAS SABIC CARGILL etc. With the continuous ex- areas of mainland China and the middle and low-

pansion of its foreign trade fleet the Company significantly enhances er reaches of the Yangtze River and the Pearl River

its ability to meet the differentiated needs of customers effectively sat- forming a transportation network system that can

isfies customer demands for different types of goods transportation radiate major domestic chemical industrial bases

distances and routes and gradually builds the Xingtong brand in the such as Bohai Bay Yangtze River Delta Pearl River

international shipping market of hazardous chemicals. Delta and Beibu Gulf

International Routes

09 10Compliance Leadership: Low-Carbon Enhanced Defense United Cooperation: Shared Responsibility:

About This Message from the About Xingtong Ensuring Stable and Long- Transformation: Leading Line: Safeguarding Building Sustainable Seeking Collaborative Growth Afterword to this

Strategy and Culture To maximize the return to our customers

Corporate Culture investors employees and society with saf-

er more efficient and more trustworthy

Corporate Strategy services

In 2024 guided by the “Belt and Road” Initiative and the “14th Five-Year Plan” for Water Transport Development In the future the Com-

pany will adhere to the vision “to become a world-class domestically leading integrated service provider for chemical supply chain” and

steadily advance the “1+2+1” strategic development plan. We will continuously open international shipping routes and serve the coun-

tries along the “Belt and Road” Initiative. Through a sustainable business model we will develop into a globally competitive and well-

known shipping enterprise devote ourselves to the high-quality development of the marine economy and support China to evolve into

a transportation power and a marine power.Mission Benchmarking world-class level

“1+2+1” strategic Vision achieving high-quality develop-

ment and contributing to the

national maritime power

To become a world-class domes-

“1” Core “2”New “1” Platform tically leading integrated service “New Field” and provider for chemical supply chain

Continuously strengthen our core “New Directions” Create a digital platform for (first-class fleet first-class service

strength in the domestic transport Enter the field of clean energy chemical supply chain logis- first-class management first-class of liquid hazardous goods transportation and actively en- tics team first-class culture)

Consolidating our leading position gage in international shipping Consistently promoting digita-

in the industry and increasing our competition lization and the application of

brand awareness technological innovation

Values Development

Philosophy

People-oriented innovation-driv-

en value creation and commit-

ted to excellence

11 12Compliance Leadership: Low-Carbon Enhanced Defense United Cooperation: Shared Responsibility:

About This Message from the About Xingtong Ensuring Stable and Long- Transformation: Leading Line: Safeguarding Building Sustainable Seeking Collaborative Growth Afterword to this

Milestones

The Company was listed on the

Main Board of the Shanghai Stock

Exchange (stock code: 603209.SH).The shipbuilding contracts were signed The Company formed a strategic coop-

The LPG transport business started. for two 25900-DWT methanol dual-fuel eration with C&D to explore new logistics

stainless steel chemical tankers. models for international liquid hazardous

The Company established whol-

goods supply chain.ly-owned subsidiaries such as Xing- The first ESG Report was released.New capacity was reviewed

tong Hong Kong Xingtong Hainan

with chemical tankers LPG The total freight volume of the Company

The total capacity of the Company ex-

and Xingtong Singapore to initiate

carriers and oil tankers rank- exceeded 11 million tons.ceeded 420 KDWT.international chemical transportation

ing the first place.business.

2021202220232024

The largest domestic chemical

tanker in operation the 45000- New capacity was reviewed

ton “Xingtong 789” was delivered. The 10000-ton chem-with chemical tankers rank-

ical tanker "Xingtong

The total capacity of the Compa- ing the first place. 66" was delivered.ny exceeded 150000 tons.

202020192014

The Company was established The transportation

starting the waterway transport of liquid chemicals

of product oil. was started.

19972002

13 14Compliance Leadership: Low-Carbon Enhanced Defense United Cooperation: Shared Responsibility:

About This Message from the About Xingtong Ensuring Stable and Long- Transformation: Leading Line: Safeguarding Building Sustainable Seeking Collaborative Growth Afterword to this

Honors and Achievements in 2024

Industry Honors

AAAA Logistics Enterprise

Awarding Authority：

Outstanding Contribution Enterprise China Federation of Logistics & Purchasing

on the 10th Anniversary of the China (CFLP)

Petroleum Circulation Association

Awarding Authority：

China Petroleum Circulation Association

2024 Top 20 Private Service Enterprises

in Quanzhou

2024 Top 100 Private Enterprises in

Quanzhou

Awarding Authority：

Charitable Enterprise of Quanzhou Office of the Leading Group for Investment Pro-

Awarding Authority： motion in Quanzhou City

Quanzhou Municipal People’s Government Quanzhou Federation of Industry and Commerce

2024 Top 100 Private Enterprises

with Tax Payments Exceeding 2024 Excellent Supplier

100 Million Yuan Awarding Authority：

Awarding Authority： Jiangsu Shenghong Petrochemical Industry

Quanzhou Municipal People’s Government Group Co. Ltd.

2023-2024 Top Chemical Logistics 2024 Outstanding Logistics

Enterprises in Water Transport Partner

Services Awarding Authority：

Awarding Authority： PetroChina South China Chemical Sales

China Federation of Logistics & Purchasing (CFLP) Branch

Mr. Chen Xingming Chairman

o f t h e B o a r d O u t s t a n d i n g

Entrepreneur of Fujian Province

at the 20th Fujian Enterprises Recognition in Sustainable Development

and Entrepreneurs Conference

Awarding Authority：

Fujian Enterprises and Entrepreneurs Conference

Safety and Integrity Company

Safety and Integrity Ship and

Safety and Integrity Captain in

2024

Awarding Authority： Awarding Authority：Securities Times

Maritime Safety Administration of the Ministry

of Transport

15 16Compliance Leadership: Low-Carbon Enhanced Defense United Cooperation: Shared Responsibility:

About This Message from the About Xingtong Ensuring Stable and Long- Transformation: Leading Line: Safeguarding Building Sustainable Seeking Collaborative Growth Afterword to this

Customer Recognition and Qualification Certification

Customer Recognition Qualification Certification

For a long time by virtue of its professional strength and excellent service the Company has established long-term and stable partner- The Company in strict compliance with the applicable international and domestic laws and regulations establishes a sound safety and

ships with a wide range of leading clients in the refining and petrochemical industry. With efficient safe and high-quality services the environmental protection management system obtains the qualifications and certifications required by relevant authorities and classi-

Company has gained wide recognition from customers including titles such as the “Best Service Provider for Safety” and the “Outstand- fication societies and continuously strengthen and enhance safety and environmental management systems to improve service levels.ing Logistics Service Provider” granted by clients such as Sinopec CNPC CNOOC and Sinochem.Business Qualificatio

Best Service Pro- Outstanding Logis-

vider of Safety and tics Service Pro- Outstanding Logis-

Integrity vider tics Partner Domestic Waterway Domestic Ship Man- Taiwan Straits

Transport Business agement Business Cross-Border Wa-

License License terway Transport License

Cooperating Clients Cooperating Clients Cooperating Clients Awarding Authority Awarding Authority Awarding Authority

Quanzhou Waterway Transport

Sales Branch of CNOOC Oil & Petro- South China Branch of Sinopec Ministry of TransportChemical Commercial Holding Com- PetroChina South China Marketing Management Office

Ministry of Transport

chemicals Co. Ltd. pany Limited Company

Document of Compli- International Docu-

ance (DOC) Certificate ment of Compliance (DOC) Certificate of

of Safety Management Safety Management

System System

Outstanding Ship and Outstanding

Excellent Partner Safety Excellence Awarding Authority Awarding AuthoritySupplier Fujian Maritime Safety Fujian Maritime Safety

Award Administration Administration

Certification Systems

Cooperating Clients Cooperating Clients Cooperating Clients Level 1 Standardized

Sinochem Petrochemical Distribution CNOOC and Shell Petrochemicals Fujian Refining & Petrochemical

Co. Ltd. Company Limited Company Limited Safety Management ISO 9001 Quality

Certification for Water Management System

Transport of Hazardous

Goods

Awarding Authority Awarding Authority

China Classification Society Fujian Southeast Standard Certification Center

Strategic Cooperation Outstanding Service

Service Provider Provider

ISO 14001 Environ- OHSAS 18001 Occu-

mental Management pational Health and

System Safety Management

System

Cooperating Clients Cooperating Clients Awarding Authority Awarding Authority

Hengli Petrochemical (Dalian) Refin- Fujian Southeast Standard Fujian Southeast Standard Rongsheng Petrochemical Co. Ltd. ery Co. Ltd. Certification Center Certification Center

17 18Compliance Leadership: Low-Carbon Enhanced Defense United Cooperation: Shared Responsibility:

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Compliance Leadership:

Ensuring Stable and

Long-term Development

Xingtong Shipping strictly adheres to the governance requirements for listed companies.Upholding the business philosophy of “integrity standardization and win-win cooperation” the

Company has established and continuously improved a modern corporate governance system

that is scientific standardized well-balanced and efficient. This helps solidify the Company’s

development foundation actively practice the philosophy of sustainable development and

promote the high-quality development of the Company.

19 20Compliance Leadership: Low-Carbon Enhanced Defense United Cooperation: Shared Responsibility:

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Governance for Sustainable Sustainable Development Concepts and Goals

Development Our social responsibility policy adheres to conducting business in a responsible ethical and sustainable manner committing to long-termism and achieving sustainable development.Focusing on the Sustainable Development Goals (SDGs) of the United Nations we are actively engaged in ESG practices to pro-

mote sustainable development and strive to achieve a harmonious win-win cooperation between business and social values.Governance System for Sustainable Development

To align with the Company’s strategic direction promote sustainable development ensure the scientific and rational nature of SDGs Xingtong in Action Corresponding Section

development plans and strategic decisions and comprehensively enhance sustainable development capacity the Company hasformulated the ESG Management System and established a sustainable development governance framework covering “deci- Dedication to Social Con-sion-making management and implementation” to unify the leadership decision-making and implementation of ESG work. The Company actively engages in public charity activities supports education tribution

development and rural revitalization practices social responsibility with practi-

Support for Rural Revital-

The Board of Directors the leadership and deci- cal actions and contributes to the construction of a harmonious society. ization

sion-making body for ESG work is responsible for

determining the Company’s sustainable development Decision-making LevelBoard of

strategy and other overarching tasks. An ESG Working Directors

Group under the Board of Directors as a research and The Company organizes agricultural support activities and actively contributes Support for Rural Revital-

to the cause of rural revitalization. ization

guidance body for ESG work is responsible for formu-

lating ESG work guidelines and plans and providing Managerial LevelESG Working Group

support to the Board of Directors. The Company’s de-

The Company pays attention to the physical and mental health of crew Governance of Navigation

partments and subsidiaries serving as the executing members strengthens occupational health protection and regularly conducts Safety

bodies for ESG work are mainly responsible for specif- occupational health monitoring and medical checkups; Assurance of Safety and

ic implementation work such as fulfilling departmental Executive

ESG Work Execution Bodies Level The Company also organizes professional lectures and training offers psycho-

Health

responsibilities in the implementation of the ESG strat-

egy and collecting/reporting ESG information. (Departments and Subsidiaries)

logical counseling services and fully safeguards the health and well-being of Construction of Safety

crew members. Culture

Organizational Structure for Sustainable

Development Management

The Company attaches importance to talent cultivation solidly offers profes-

sional ability and knowledge training deepens school-enterprise cooperation Building of High-Quality

and co-cultivates shipping talents constantly improves the professional skills Teams

and knowledge reserve of the staff and creates a high-quality talent team.In 2024 the Company organized ESG-related training to enhance employees' understanding of ESG concepts and

relevant practice abilities. External experts were invited to give in-depth lectures on core ESG elements interna-

tional standards best industry practices as well as the opportunities and challenges facing ESG work.The Company actively advocates for gender equality implements a non-gen- Protection of Employees’

der-discriminatory recruitment policy fully protects female employees' rights Rights and Interests

organizes themed events such as Women's Day and creates an inclusive and Employee Care and

equal working environment. Support

The Company strictly regulates the compliant treatment of sewage from Environmental Compliance

ships ensures the safety of fresh drinking water onboard actively improves Management

sanitary facilities and provides a healthy and safe living environment for the

crew. Water Resource Utilization

The Company actively promotes the construction of low-carbon ships such as

methanol dual-fuel ships while exploring the application of green energy and

is committed to promoting the transition of the shipping industry to economic Energy Management

and applicable clean energy.Protection of Employees’

Rights and Interests

The Company provides diversified career development paths strengthens

employee training and promotion mechanisms and fully safeguards employee Optimization of Remunera-

rights and benefits. tion and Benefits

ESG Promotion Site Building of High-Quality

Teams

21 22Compliance Leadership: Low-Carbon Enhanced Defense United Cooperation: Shared Responsibility:

About This Message from the About Xingtong Ensuring Stable and Long- Transformation: Leading Line: Safeguarding Building Sustainable Seeking Collaborative Growth Afterword to this

Communication with Stakeholders

The Company has actively invested in R&D to promote the ships’ digital

intelligence transformation build intelligent shipping platforms and enhance Leading a New Chapter In Shipping

shipping efficiency and safety; The Company is committed to improving the level of corporate responsibility governance and responsibility competitiveness

Enhancement of IndustryThe Company strengthens strategic cooperation with industry partners jointly “telling the Xingtong story well developing the Xingtong brand increasing the popularity of Xingtong and creating Xingtong Collaborationpromotes technological innovation and industrial upgrading improves infra- value”. The Company also actively communicates with the government regulatory bodies shareholders customers and other

structure network layout facilitates upstream and downstream coordination in Joint Efforts for Innovative stakeholders and enhances the transparency of information disclosure and handling of claims to realize the common sustainable

the supply chain and supports sustainable economic development. Development development of enterprises and society.Stakeholders Main Topics of Concern Company Respons

The Company provides equal career development opportunities and imple- Protection of Employees’

ments a non-geographical and non-sexist recruitment and employment policy Rights and Interests

to ensure that every employee enjoys a fair working environment and promo- Employee Care and · Lawful tax payment

· Strengthen communication and reporting with gov-

ernment/regulatory agencies

tion opportunities. Support · Employment promotion

Government/regulatory · Publish regular reports and corporate ESG reports

agencies · Compliant operations · Fulfill tax obligations

The Company actively organizes its employees to participate in community · Compliant operations

environmental protection activities such as beach cleanups improve the com- · Disclose relevant information

munity’s environmental quality and contribute to the community's sustainable Social Welfare Activities · Integrity management · Convene a general meeting of shareholders

development. Shareholders · Risk management and internal control

· Publish regular reports and corporate ESG reports

· Development strategy

· Hold communication meetings such as the Employ-

The Company implements a green procurement policy prioritizes the se- · Protection of basic rights and interests ees’ Congress

lection of environmentally friendly and efficient materials and services and Recycling of Materials

drives the upstream and downstream of the supply chain to jointly practice · Health and safety · Ensure employees’ occupational health and safetySustainable Supply Chains

responsible consumption and production concepts. · Career development · Offer competitive remuneration and benefitsEmployees

· Crew care · Provide diversified employee training

· Build a “home” for the crew

The Company adopts advanced energy-saving technologies and equipment

to optimize sh nbational climate policy trends participates in relevant training Response to Climate

and seminars and ensures that business operations comply with international Change · Donate to education development funds · Contribution to communities

emission reduction requirements; Communities · Participate in community public welfare activities

· Enhance Environmental Management

· Energy conservation and carbon reduction

The Company takes measures such as route optimization enhanced ballast · Practice energy conservation and emission reduction · Waste discharges

water management and noise reduction during navigation to effectively Protection of Ecosystem

protect marine ecosystems maintain underwater biodiversity and actively and Biodiversity Environment

· Protect marine ecosystems

· Protection of marine ecosystems

contribute to marine protection efforts. · Develop green ships

· Enhance transport capacity

· Safe and efficient logistics services · Deliver safe and efficient transportation services

The Company actively promotes the use of environmentally friendly packag- Improvement of Resource · Top-tier customer service · Provide green and low-carbon transportation

ing materials implements green office practices and conducts environmental Efficiency Customers services

activities such as tree planting to contribute to the protection of terrestrial Protection of Ecosystem

ecosystems and biodiversity. and Biodiversity

· Offer fair opportunities

· Fair just and open procurement

Suppliers · Conduct responsible procurement

The Company builds an efficient governance structure strengthens com-

pliance and risk management promotes communication and cooperation Compliance Leadership:

with internal and external stakeholders standardizes business practices and Ensuring Stable and Long-term Development

establishes a peaceful just and strong business environment. · Support industry exchanges

· Contribution to industry development

Industry organizations · Participate in industry forums and meetings

The Company deepens the strategic cooperation with upstream and down-

stream enterprises in the supply chain actively participates in industry forums Joint Promotion of Indus-

and school-enterprise exchange activities and establishes supply chain try Development

partnerships to jointly promote the sustainable development of the shipping Sustainable Supply Chains ·Transparent communication · 及Timely release reports and information

industry and drive win-win cooperation with a more open attitude. Media

23 24Compliance Leadership: Low-Carbon Enhanced Defense United Cooperation: Shared Responsibility:

About This Message from the About Xingtong Ensuring Stable and Long- Transformation: Leading Line: Safeguarding Building Sustainable Seeking Collaborative Growth Afterword to this

Materiality Analysis

Materiality Analysis Matrix

With reference to the requirements of relevant standards and guidelines such as Shanghai Stock Exchange Self-RegulatoryGuidelines for Listed Companies No. 14 - Sustainability Report (for Trial Implementation) (hereinafter referred to as “the Guide-lines”) and in combination with the characteristics of the industry in which the Company is operating and the business realities High

of the Company we comprehensively identify and evaluate material topics that have a significant impact on and are of close

concern to its stakeholders through questionnaire surveys of stakeholders industry research and other means. ● Navigation Safety Management● Waste Treatment

● Pollutant Emissions

● High-Quality Customer Service

Material Topic Analysis Process ● Data Security and Privacy Protection

● Response to Climate Change

● Contribution to Society

● Occupational Health and Safety

● Equal Treatment of Small and Medium-Sized Enterprises ● Environmental Compliance Management

Analyzing the Company's activities and business relationships ● Protection of Marine Ecosystems

● Supply Chain Security

Consider national policies industry trends and company strategies comprehen- ● Employee Training and Development

sively analyze the external environment and internal business activities and iden- ● Improvement of Transport Capacity

tify the main stakeholders. ● Compliance and Risk Control

● Protection of Employees’ Rights and Interests ● Circular Economy

● Due Diligence

● ESG Governance

Establishing a list of material issues ● Communication with Stakeholders

● Anti-commercial Bribery and Anti-Corruption

Use the 21 topics set forth in the Guideline as the basis and combine relevant ● Energy Utilization

standards and guidelines such as GRI and SDGs industry characteristics and ex- ● Anti-Unfair Competition

pert recommendations to form a list of material topics. ● Rural Revitalization

● Standardization of Corporate Governance

● Protection of Shareholders' Rights and Interests ● Water Resource Utilization

Conducting a stakeholder survey Low

Low Materiality of Impact on the Company’s Finance High

Conduct a stakeholder questionnaire to understand the views of stakeholders in

conjunction with the assessment requirements related to impact materiality and

financial materiality. Topic Materiality Analysis Results

Topics of Dual Mate- Topics of Financial Topics of Impact Mate-

Assessing and confirming the materiality of topics riality Materiality riality Topics of General Materiality

Based on the results of the stakeholder survey and in conjunction with our inter- Response to Climate Environmental Com- Circular Economy Water Resource Utiliza-

nal leadership assessment and expert opinion we assessed the materiality of the Change Navigation pliance Management Pollutant Emissions tion Protection of Marine Ecology Pro-Waste Disposal Data

topics in terms of “financial materiality” and “impact materiality”. Safety Management Energy Utilization tection of Employees’ Rights and Interests

High-Quality Customer Improvement of Security and Privacy Employee Training and Development Oc-

Service Transport Capacity Protection cupational Health and Safety Supply Chain

Security Equal Treatment of Small and Me-

dium-Sized Enterprises Social Contribution

Rural Revitalization Protection of Sharehold-

Inapplicable Topics ers' Rights and Interests Standardization

Reporting topics of Corporate Governance Anti-commercial

Technology ethics (the Company’s business scope does not involve scientific re- Bribery and Anti-Corruption Anti-Unfair

Based on the assessment of the materiality of the topics a matrix of material top- search technology development or other activities sensitive to technology ethics Competition Compliance and Risk Control

ics was formed. such as life sciences and artificial intelligence)

Due Diligence Stakeholder Communication

ESG Governance

Notes:

1. Topics of dual materiality refer to topics that have both financial materiality and impact materiality.

2. Topics of financial materiality refer to topics that only have financial materiality. Financial materiality indicates whether a given topic is expected to have a significant

impact on the business model operations development strategy financial condition operating results cash flow financing methods and costs of the Company in the

short medium and long term.

3. Impact materiality refers to topics that only have impact materiality. Impact materiality indicates whether the Company's performance on the corresponding topics

will have actual or potential significant impacts on the economy society and the environment.

2526

Materiality of Impact on Economy Society and EnvironmentCompliance Leadership: Low-Carbon Enhanced Defense United Cooperation: Shared Responsibility:

About This Message from the About Xingtong Ensuring Stable and Long- Transformation: Leading Line: Safeguarding Building Sustainable Seeking Collaborative Growth Afterword to this

Standardization of Corporate General Meeting of Shareholders

Governance In strict compliance with the requirements of the Rules Governing the Listing of Stocks on the Shanghai Stock Exchange the Articles of

Association of Xingtong Shipping Co. Ltd.(the “Articles of Association”) and the Rules of Procedure for the General Meeting of Share-

holders of Xingtong Shipping Co. Ltd. the Company convenes and holds the General Meeting of Shareholders and treats all share-

holders equally. The General Meeting of Shareholders adopts a hybrid online and offline meeting model to ensure that all shareholders

Governance through the General Meeting of Shareholders especially minority shareholders can enjoy equal status and rights.Board of Directors and Board of Supervisors 2024

During the Reporting Period Key Performance

The Company in strict compliance with the requirements of the Company Law of the People’s Republic of China the Securities

Law of the People’s Republic of China the Governance Code for Listed Companies and other laws and regulations has estab- the Company held a total of 5 meetings of the General Meetings of Shareholders

lished a corporate governance structure consisting of the General Meeting of Shareholders Board of Directors Board of Super-

and reviewed and approved 19 proposals at these meetings.visors and the management. The Company is committed to forming a governance mechanism with scientific decision-making

efficient execution and strong supervision in order to enhance governance effectiveness.Organizational Structure

Board of Directors

General Meeting of Shareholders Strategy Committee

The Board of Directors of the Company has set up the Strategy Committee the Audit Committee the Nomination Committee the Re-

muneration and Assessment Committee and the Safety and Environmental Protection Committee to perform their duties in accordance

Board of Supervisors Audit Committee with the provisions of the Articles of Association of the Company and the implementing rules of these specialized committees to pro-

vide the Board of Directors with rationalized proposals and to improve the operational efficiency of the Board of Directors.Secretary of the Board of Directors Board of Directors Nomination Committee

2024

During the Reporting Period Key Performance

Remuneration and Assessment

President (General Manager) Committee the Company convened a total of 10 meetings of the Board of Directors and reviewed and approved 45 proposals at

Safety and Environmental Protec- these meetings.tion Committee

the company held 3 meetings of the Strategy Committee 4 meetings of the Audit Committee 1 meeting of the Nomi-

Vice President (Deputy General Manager) Director/ Chief Capital nation Committee and 2 meetings of the Remuneration and Assessment Committee.The Company in line with the Measures for the Administration of Independent Directors of Listed Companies has formulated the Work

System of Independent Directors of the Xingtong Shipping Co. Ltd. to give full play to the active role of independent directors in corpo-

rate governance and enhance the scientificity and professionalism of the decision-making by the Board of Directors.Inde- Non-inde-

Operation Center Ship Management Finance Center International Procurement and Hu- Whether the independent Center Business Center man Resources Center pendent pendent 2024

directors directors director(s) serves as chair- As at the end of the

Key Performance

man of the committee Reporting Period(person) (person)

Strategy Committee 1 2 No the Company's Board of Directors

consisted of 11 directors of whom

Audit Committee 2 1 Yes

4 were independent directors and 7

Nomination Com-

mittee 2 1 Yes were non-independent directors with

Remuneration and As- independent directors accounting for

sessment Committee 2 1 Yes

Safety and Environ- 36.36%.mental Protection 1 2 No

Committee

2728

Audit Department

Crew Department

Human Resources Department

Shipbuilding Management Department

Purchasing Department

Technical Support Department

Safety Supervision Department

International Operations Department

International Business Department

Funding Department

Finance Department

Ship Inspection Department

Safety and Quality Department

Engine Department

Marine Department

Operations Department

Marketing Department

Legal and Risk Control Department

Digital Department

General Manager’s Office/Adminis-

tration Department

Investment Management Department

Securities DepartmentCompliance Leadership: Low-Carbon Enhanced Defense United Cooperation: Shared Responsibility:

About This Message from the About Xingtong Ensuring Stable and Long- Transformation: Leading Line: Safeguarding Building Sustainable Seeking Collaborative Growth Afterword to this

The Company attaches great importance to the diversity of the Board of Directors and in close alignment with the long-term devel- Protection of Investors’ Rights

opment needs carries out comprehensive and meticulous consideration in the selection and recruitment of directors. We focus on the

balance of various factors such as gender age professional knowledge educational level and background and strive to build a board and Interests

team with a reasonable structure and complementary strengths.The existing directors of the Company have rich and diversified professional backgrounds covering fields such as corporate manage-

ment finance and accounting legal compliance and profound industry experience. In the daily operation and major decision-making Investor Relations Management

process of the Company the directors by virtue of their unique professional advantages analyze issues from different perspectives and

provide valuable opinions and suggestions with both rationality and scientificity on the Company's business decisions which strongly

promote the Company's steady progress towards standardization and efficiency and help the Company accurately grasp the develop- In compliance with applicable laws and regulations the Com-

ment opportunities in the complex and volatile market environment to achieve sustainable development goals. 2024pany has formulated the Investor Relations Management Sys- During the Reporting Period Key Performance

tem of Xingtong Shipping Co. Ltd. aiming to establish a long-

term communication mechanism between the Company and

its investors enhance information transparency and effective-

Distribution of Independent Directors’ Special- ly safeguard the legitimate rights and interests of investors. the Company held a total of 115 perfor-Gender Structure （Number of Age Structure （Number ofDirectors） Directors） ties The Company actively maintains various communication

mance briefings and investor communica-

Industry Experience channels such as holding performance briefings receiving

8 investors for on-site research answering investor hotlines 9 tion meetings and made 17 replies on the and reacting on SSE E-Interactive to actively communicate

with investors address concerns raised by investors and in- SSE E-Interactive Platform with a 100%

Financial Accounting

crease investor confidence in the Company’s future develop-

2 3 response rate to investors’ questions ment prospects and the recognition of the Company’s values.

covering a total of 27 brokers’ research

Female Male 50 years old or above 30-50 years old Legal Compliance In 2024 the Company received comprehensive recognition

from a wide range of investors for its outstanding perfor- reports.mance in investor relations management winning three ma-

jor awards: “Top 300 Most Popular Listed Companies” on theTonghuashun Annual List of Listed Companies the “InvestorRelations Elite Award” and the “Top 100 Most Popular Sec-retaries”.Board of Supervisors

The Board of Supervisors following the Company Law of the Peo-

ple's Republic of China the Articles of Association the Rules of 2024

As at the end of the Key PerformanceProcedure of the Board of Supervisors of Xingtong Shipping Co. Reporting Period

Ltd. and other applicable laws regulations and rules conscien-

tiously performs its supervisory duties to effectively safeguard the

interests of the Company and the rights and interests of share- As of the end of the Reporting Period the

holders. Company had 3 supervisors including 1

Management of Remuneration for Directors employee supervisor and 1 female supervi-

Supervisors and other Officers

sor who accounts for 33.33% of the total.The Company focuses on the transparency of the remuneration of

directors supervisors and other officers. In accordance with the

Governance Code for Listed Companies and other applicable laws

IN 2024

regulations and the Company's operation realities the Company

has formulated and published the Management System for the

Remuneration of Directors Supervisors and Officers. This system the Company convened a total of 7 meet-

clarifies the remuneration standards and related regulations for the

payment of remuneration of directors supervisors and officers. It ings of the Board of Supervisors to review

aims to fully motivate the directors supervisors and officers of the

Company enhance their cohesion embody the fair principle of 26 proposals. Materiality of Impact on Economy Society and Environment On-Site Research by Investors

“aligning responsibilities risks and interests” maximize the inter-

ests of shareholders and lay a solid foundation for the Company’s

long-term and stable development.

29 30Compliance Leadership: Low-Carbon Enhanced Defense United Cooperation: Shared Responsibility:

About This Message from the About Xingtong Ensuring Stable and Long- Transformation: Leading Line: Safeguarding Building Sustainable Seeking Collaborative Growth Afterword to this

Information Disclosure

The Company standardizes the information disclosure process formulates 2024

the Information Disclosure Management System of Xingtong Shipping Co. During the Reporting Key Performance

Ltd. strengthens the quality of information disclosure ensures the truthful- Period

ness accuracy completeness fairness and timeliness of information disclo-

sure and protects investors' right to know. Moreover the Company attach- the Company dis-

es importance to the confidentiality of unpublished information formulates

the Insider Information and Confidentiality Management System of Xingtong closed 4 periodic

Shipping Co. Ltd. and prevents insider trading.reports

In 2024 Fujian Association for Public Companies issued the Notice on the

Publication of the 2023-2024 Annual Investor Relations Management Evalua-

tion Results for Listed Companies in Fujian. Xingtong Shipping was awarded and 85 interim

the highest “A” rating for its high-quality information disclosure standardized

corporate governance and excellent investor relations management. Addi- announcements.tionally the Company received a “B” rating in the annual evaluation of infor-

mation disclosure by SSE from 2023 to 2024.Returns to Shareholders

On the basis of sound operations the Company coordinates and balances the sustainable development of the enterprise and

shareholder returns and is committed to providing investors with a “sustainable stable and scientific” dividend policy. Through

the implementation of cash dividends share buybacks and other diversified return measures the Company provides sharehold-

ers with long-term and stable investment returns enhances the sense of gain for investors and ensures that investors (especially

small and medium-sized investors) can share in the development achievements of the Company.During the Reporting Period in active response to the Shanghai Stock Exchange's Proposal for the Special Action of “ImprovingQuality Increasing Efficiency and Focusing on Returns” for Companies Listed on the Shanghai Stock Exchange the Company

formulated the “Improving Quality Increasing Efficiency and Focusing on Returns” Action Plan and focuses on aspects such

as business operations shareholder returns cash dividends share buybacks employee stock ownership plans and green de-

velopment. This continuously promotes the Company’s high-quality development enhances investor returns and increases the

Company's investment value. Over the past three years the cash dividends of the Company have steadily increased with a cu-

mulative dividend of RMB 193 million over three years.

2024

During the Reporting Period Key Performance

Proportion to Net Profit Attrib-

Cash Dividend per Share Total Cash Dividend (Tax Inclusive) utable to Shareholders of the（yuan）（RMB million） Listed Company (%)

20240.2073.2620.91

20230.1589.7435.58

20220.153014.55

Note: The cash dividends for 2023 and 2024 included the amount used for share repurchases in cash.

31 32Compliance Leadership: Low-Carbon Enhanced Defense United Cooperation: Shared Responsibility:

About This Message from the About Xingtong Ensuring Stable and Long- Transformation: Leading Line: Safeguarding Building Sustainable Seeking Collaborative Growth Afterword to this

Enhancement of the Risk Defense Line （1）Tax Management

The Company strictly complies with relevant tax laws and regulations establishes internal control processes for tax management clari-

The Company continuously improves its risk management system and enhances its ability to prevent and resolve risks in accordance fies tax management responsibilities standardizes the Company's tax workflow guards against tax risks and ensures that tax accounting

with the Governance Code for Listed Companies the Basic Standard for Enterprise Internal Control and other relevant regulations. In processing is timely accurate and compliant in accordance with the Company Tax Management Rules and other systems. The Company

daily operations the Company regularly conducts risk assessments and issues the Legal Risk and Compliance Risk Management Re- adheres to the integrity of business pays taxes in accordance with the law declares and pays all taxes on time and actively contributes

port. This helps the management team of the Company understand the risk situation the Company faces in a timely and comprehen- to the national fiscal and tax revenue.sive manner and enables them to make scientific and reasonable decisions thereby ensuring the sustainable and stable development In 2024 in response to the needs of international business development the Company offered specialized training on the “financial andof the Company. tax laws” of Singapore to raise tax risk awareness across all departments.In 2024 the Company's tax payments totaled RMB 162 million. During the Reporting Period Xingtong Shipping and XT-IMC were award-

ed “2023 Tax Credit Rating A” and Xingtong Shipping was granted with honors such as 2024 Top 100 Private Enterprises with Tax Pay-

Enhancing Risk Management ments (with Tax Payments Exceeding RMB 100 Million) by Quanzhou Municipal People’s Government.The Company insists on integrating the requirements of risk management into enterprise management and business processes and

establishes “three lines of defense” for risk management. When assessing risks the Company pays attention to both internal and ex- （2）Management of Related Transactions

ternal factors fully recognizes the essence of risks and adopts proactive and effective strategies and measures to prevent and reduce

risks. During the cooperation process through due diligence on partners including KYC (“Know Your Customer”) reviews for overseas The Company strictly complies with the relevant provisions of the Articles of Association and the Management System for Connected

clients suppliers and domestic client evaluations the Company helps to comprehensively identify various risks related to its partners Transactions of Xingtong Shipping Co. Ltd. fulfills the deliberation procedures and information disclosure obligations for connected

provides a foundation for subsequent risk assessments and responses and ensures stable operations. transactions strictly implements the system of avoidance of voting on connected transactions and gives full play to the role of indepen-

dent directors to safeguard the legitimate rights and interests of the Company and its shareholders.Business Department and Legal and Risk Control Audit Committee of the Board

Safety and Quality Department Department of Directors and the Audit

Collaborate with external legal Department Development of Risk Management Culture

Conduct client and supplier au- institutions and establish a com-

dits and improve the Company’s Strengthen the prevention and prehensive and solid profession-

safety production system. control of risks through a sound al legal and risk management Focusing on risk management the Company offers various risk management training as needed fosters the risk management culture internal audit systemdefense line. and establishes a long-term mechanism for risk management. In 2024 the Company organized training activities such as “Sharing ofTypical Sanction Cases” “Interpretation and Analysis of the Revision of the New Company Law” and “Integrity Compliance and Interna-tional Dispute Resolution” to enhance employees' awareness and ability to prevent risks.f Defe

nse

e o Improvement of Internal Control Systems

t Lin

Firs Second Line of Defense The Company attaches high importance to internal control systems and continuously improves the Company's internal control manage-

ment system in accordance with applicable laws and regulations such as the Basic Standard for Enterprise Internal Control. In 2024 the

Company formulated and revised 13 management systems at the corporate level and focused on enhancing internal audit supervision

to further strengthen the foundation of governance and management improve operational efficiency and safeguard the steady imple-

mentation of the Company’s strategy.Thi The Company’s internal control management structure is composed of the Audit Committee and the Internal Audit Department which rd L jointly conduct comprehensive supervision and objective evaluation of the Company's internal control management work and ensure the ine effective operation of the internal control system prevent risks in operational management and promote the achievement of internal of D control objectives.efen In 2024 the accounting firm conducted an evaluation of the reasonableness of the Company's internal control system the effectiveness se of internal control operations and other aspects and issued the 2024 Internal Control Audit Report confirming that the Company main-

tained effective internal controls in all major areas.“Three Lines of Defense” for Risk Management

33 34Compliance Leadership: Low-Carbon Enhanced Defense United Cooperation: Shared Responsibility:

About This Message from the About Xingtong Ensuring Stable and Long- Transformation: Leading Line: Safeguarding Building Sustainable Seeking Collaborative Growth Afterword to this

Compliance and Business Ethics

Business Ethics

Compliance Management In strict compliance with laws and regulations such as the Anti-Unfair Competition Law of the People's Republic of China and the An-

ti-Monopoly Law of the People's Republic of China and the Anti-Money Laundering Law of the People's Republic of China the Compa-

The Company attaches great importance to compliance management. We formulate systems such as the Contract Management Sys- ny abides by the requirements of business ethics and integrity upholds the principle of fair competition refrains from engaging in any

tem and the Case Management System standardize contract management case prevention and processing mechanisms and ensure activities that may harm market competition and prohibits any form of unfair competition. We submit operator concentration declaration

compliance in complex international environments. By improving the compliance and legal risk reporting mechanisms the Company documents to the State Administration for Market Regulation in accordance with the laws and regulations and have officially obtained

prevents the financing of terrorism money laundering and other illegal activities while comprehensively protecting the operation legit- the Notice of Acceptance of Antimonopoly Review of Operator Concentration to ensure that the Company complies with the require-

imacy and robustness of the Company. The Legal and Risk Control Department is responsible for developing implementing and moni- ments of fair competition during the cooperation process.toring sanctions compliance providing training and legal support. Each department is responsible for implementing sanction compliance The Company enforces strict rigorous and serious requirements strengthens the prevention of integrity risks incorporates integrity

measures including due diligence transaction monitoring and reporting etc. The Audit Department is responsible for auditing and eval- requirements into employees’ daily work norms and enhances the supervision and management of key personnel to safeguard the

uating sanction compliance. Company’s asset security and operational order. In addition the Company establishes integrity clauses in major contracts and ensures

The Company has deeply implanted anti-money laundering and sanction compliance review into the KYC cooperation background the fairness and transparency of procurement activities by improving procurement processes clarifying evaluation standards and imple-

check procedure and continuously improves the compliance system with a global compliance perspective. During the collaborative in- menting strict supervision mechanisms.vestment the Company lawfully submitted the operator concentration filing materials to the State Administration for Market Regulation

and formally obtained the Notice of Acceptance of Antimonopoly Review of Operator Concentration to ensure that the Company com-

plies with the requirements of fair competition in the process of during the cooperation process. 2024

Key Performance

In 2024 the Company did not experience any significant illegal or regulatory violations. In 2024

no economic losses due to legal actions related to bribery embezzlement or corruption occurred

Compliance Review Process in the Company.Prior Prevention 1

The responsible department collaborates with the Legal

Department and the Risk Control Department to con-

duct a legal and compliance review of specific matters

from the perspectives of laws and regulations regulato-

ry requirements company policies and procedural le-

gitimacy. The project will be submitted to the manage-

ment for further decision-making only after the relevant

departments have issued an unqualified opinion that it

is “legally compliant feasible and procedurally proper”.In-process Control 2

On the one hand the responsible depart-

ment tracks the progress of the project Post Assessment and Effective-

and if risks or new compliance review re- ness Evaluation

quirements arise during execution promptly 3

informs the Legal Department and the Risk The overall status of the project is supervised

Control Department for intervention. On the and evaluated with corrective suggestions pro-

other hand monitoring is strengthened to vided for any violations of internal control re-

ensure the responsible department executes quirements or weak links in compliance man-

in a legal and compliant manner and adheres agement ultimately forming a single compliance

to the internal control systems. review report.

35 36Compliance Leadership: Low-Carbon Enhanced Defense United Cooperation: Shared Responsibility:

About This Message from the About Xingtong Ensuring Stable and Long- Transformation: Leading Line: Safeguarding Building Sustainable Seeking Collaborative Growth Afterword to this

Low-Carbon Transformation:

Leading the Future of

Shipping

Xingtong Shipping strictly adheres to the relevant environmental protection regulations such as

the International Convention for the Prevention of Pollution from Ships released by International

Maritime Organization (IMO) and leverages energy-saving and low-carbon technologies and

other innovative measures to minimize negative impacts on the environmental ecosystem thus

contributing to the development of green shipping and fully safeguarding marine ecology.

37 38Compliance Leadership: Low-Carbon Enhanced Defense United Cooperation: Shared Responsibility:

About This Message from the About Xingtong Ensuring Stable and Long- Transformation: Leading Line: Safeguarding Building Sustainable Seeking Collaborative Growth Afterword to this

Response to With the intensifying global climate change the international community's requirements for reducing greenhouse gas emissions are becoming increas- Effectively reduce fuel consump-tion and alleviate cost pressures by

ingly stringent. As one of the major sources of carbon emissions the ship- Customers prefer greener low-carbon and even zero-car- Medi- Operations optimizing transport processes im-

Climate Change ping industry has to assume the responsibility for emissions reduction. The Market bon logistics services. Cost um- proving operational efficiency and and reducing empty sailing;Company follows the relevant rules set by the International Maritime Or- Risks Fuel prices have risen as a result of the application of increase Long- Down-streamganization (IMO) and actively responds to the “carbon peaking and carbon cleaner technologies such as fuel pretreatment. term Develop and implement a Ship Fuel Conversion Procedure to reduce theneutrality” policy of China. By optimizing ship design and improving energy use of high-priced fuel.efficiency the Company is committed to reducing greenhouse gas emis-

sions and promoting the green low-carbon development of the shipping Trans-

forma- As the shipping industry is energy-intensive and Establish and improve an environ-industry. tion high-emission if the Company fails to effectively address mental management system to

Risks climate change the Company's environmental image may Cost ensure effective implementation of

Governance be severely damaged making it difficult to attract and re- increase environmental protection measures;tain stakeholders such as investors banks customers sup- revenue Upstream

Repu- pliers and employees who are concerned about climate de-

Establish communication channels

tation change and sustainable development. crease Long- Operations

with stakeholders promptly respond

to their concerns and feedback and

The Company formulates and implements the Energy Conservation and Emission Reduction Management Procedure incorporates en- Risks and termEnvironmental regulations in the hazardous materials Down- strengthen trust and cooperation;

ergy conservation and emission reduction into daily operation and management and continuously improves energy conservation and transportation industry are tightening and customers and damage stream

emission reduction through regular review and continuous improvement so as to promote green and low-carbon development. The consumers are becoming more environmentally conscious. to repu-

Organize employees to deeply study

Management measures of the Company for emission re- tation relevant environmental protection regulations to ensure that the Com-

Company's ESG Working Group coordinates the planning and implementation of strategies to address climate change establishes a duction and energy efficiency if inadequate will result in

damage to the Company’s reputation. pany’s operations comply with regu-

green and low-carbon development path actively promotes the implementation of energy-saving and emission reduction measures and latory requirements;

promotes the harmonious coexistence of the enterprise and the environment.Before the arrival of extreme weath-

er carry out a comprehensive in-

spection of the ships to ensure

Strategy that the water tightness is good the drainage system is smooth and the key equipment (such as anchor

chains mooring equipment and

We identify the transformational risks physical risks and opportunities that our own operations and value chain may face in the short drainage pumps) is in good condi-tion;

medium and long-term timeframes and their potential impacts taking into account the development trends of the shipping industry and

the operation realities of the Company. Extreme Weather Events Result in Damage to All Assets: During extreme weather strengthen

The frequency and intensity of extreme coastal and off- communication with shore-based

shore weather events such as typhoons and tropical Cost and surrounding ships obtain time-

Financial Impact Value increase

ly meteorological information and

Risk Type Description of Risks Impact Dura- Chain Link Countermeasures

storms have increased leading to damage to assets such

tion Impacted as ships equipment and cargo.navigational advice and implement

Damage measures such as detouring or sus-

pending ships’ operation in port;

Mandatory Regulation and Pricing Mechanism for Green- Extreme Weather Events Increase the Difficulty of Ship to fixed

house Gas Emissions from Ships: The 2023 IMO Strategy Navigation: Frequent offshore extreme weather events in- assets Operations

on Reduction of GHG Emissions from Ships sets emission Acute crease the difficulty of ship schedules and route planning in- Short-

During continuous extreme weather

enhance monitoring of the crew’s

reduction targets requiring a 40% reduction in emission in- Risk cause damage to port facilities reduce ship turnaround creased term Down-

tensity by 2030 and a 70% reduction in total emissions by efficiency interrupt some shipping activities and increase insur- stream

health promptly identify and ad-

dress health issues; develop detailed

2040 (with a target of 80%). This means that future regu- transportation risks. ance emergency plans including emer-

lations will become stricter with possible measures such costs

as setting phased standards for ship fuels and implement- Closely monitor updates to interna- Continuous Extreme Weather Affects Crew Status: Pro- and de-

gency response processes resource

ing flexible pricing for greenhouse gas emissions. More- tional regulations to ensure that ship longed and continuous extreme weather leads to unstable creased

allocation and personnel assign-

over the EU Emissions Trading System (EU ETS) will come operations comply with the latest physical and psychological state of crew members which revenue

ments;

into effect for the shipping industry with the payment ra- emission reduction requirements; affects their health work efficiency and safety of ship- Integrate high-throughput satellite

tio increasing each year: 40% in 2024 70% in 2025 and board operations.full payment starting in 2026. Short- Invite external agencies to conduct

broadband systems CCTV intelli-

term training research the specific im- Phys- gent monitoring AI behavior recog-Policy Me- Operations pact of the EU ETS on the shipping ical nition and navigational safety assis-and Mandatory Regulation of Ship Energy Efficiency and Car- Cost dium industry and develop corresponding Risk tance systems on board and based Legal bon Intensity: The amendments to Annex VI of MARPOL increase Down-

Risks provide for an Energy Efficiency Existing Ship Index (EEXI) and stream cost budgets and risk management

on authoritative meteorological data

intelligently analyze weather condi-

and require that the competent Maritime Authority peri- Long- strategies. tions at sea proactively avoid risks

odically rate the annual operational Carbon Intensity Index Term ensure navigational safety and build

(CII) rating of ships and that the rating be continuously re- Strengthen carbon emission data an integrated smart navigation safe-

duced. In November 2022 the Maritime Safety Administra- management and carbon emission ty management platform for ships

Trans- tion of the People's Republic of China issued the Measures quota management and complete

forma- for the Management of Energy Consumption Data and the annual quota surrender as re-

and shore bases.tion Carbon Intensity of Ships which require ships to record quired by the EU ETS. Conduct a comprehensive assess-

Risks and report energy consumption data on a regular basis ment of the sea level rise adapt-

and to regularly assess the annual operating carbon inten- ability of existing ports prioritize

sity rating of ships on international voyages. As regulations ports with strong adaptability that

tighten further ships that do not meet EEXI and CII re- can handle future sea level rise for

quirements will need additional investments for inspec- Sea Level Rise Affects Ship Unloading Operations and docking and unloading operations;

tions modifications and other measures. Berthing in Ports: Sea level rise will affect ship unloading regularly update nautical information

Track the latest technological devel- operations and docking at existing ports and may reduce

such as electronic charts to ensure

opments policy changes and mar- the number of ports available for ships to dock. Revenue

that ships can access the latest

decrease Operations data on routes water depths port ket acceptance of clean fuel-pow- Chron- Long- facilities etc. to address challenges

The R&D and application of energy-saving technologies for ered ships; ic Risk Sea Level Rise and Average Wind Speed Changes Affect

ships will become mandatory including direct or indirect Ship Navigation and Onboard Operations: Changes in av- Cost

term Down- posed by environmental changes

energy-saving technologies such as ship drag reduction Actively participate in industry con- erage wind speed at sea will affect ship navigation resis- increase

stream such as sea level rise; monitor the

ship's navigation performance in

Tech- ship engine efficiency upgrading and route optimization.Medi-

um- Upstream ferences seminars and other activ-

tance and speed increase the difficulty of route planning real-time including key indicators

nology Cost and ities to obtain the latest information

and potentially negatively impact onboard operational

Risks Accelerating the deployment of clean fuel-powered ships

such as speed fuel consumption

increase and experiences; safety.has become an industry trend but the process is accom- Long- Operations and stability and adjust the ship's

panied by a number of notable risks such as high retrofit term Establish partnerships with ship op- operational parameters in a time-

costs technological uncertainty and market acceptance erators and fuel suppliers to jointly ly manner based on environmental

challenges. explore the application prospects of factors such as sea level rise and

clean fuel-powered ships and pur- wind speed changes ensuring safe

chase and build low-carbon envi- and efficient navigation.ronmentally friendly ships.

39 40Compliance Leadership: Low-Carbon Enhanced Defense United Cooperation: Shared Responsibility:

About This Message from the About Xingtong Ensuring Stable and Long- Transformation: Leading Line: Safeguarding Building Sustainable Seeking Collaborative Growth Afterword to this

Opportunity Type Description Financial Impact Dura-

Value

Impact tion Chain Link CountermeasuresImpacted Indicators and Goals

The R&D and deployment of

Improve- the ship digital intelligence Cost decrease Operations Increase investment in R&D to build a ment of ship management system help to Short- and digital intelligence management sys- The Company based on its operation realities and according to IMO's relevant industry regulatory requirements continuously monitors

operation optimize routes scientifically and revenue increase medium-term Downstream tem; continuously iterate and upgrade to and manages greenhouse gas emissions from ships and other indicators to ensure the full implementation of emission reduction ef-efficiency and improve ship operational maintain system advancement.turnaround rates. forts.Re-

source

effi-

ciency The ship energy efficiency

may be improved through Develop energy-saving retrofit plans

Improvement energy-saving modifications adopt advanced energy-saving technol-

of ship ener- development and deployment Cost reduction Short- and Operations ogies and equipment; strengthen data

gy efficiency of the management system of medium-term integration and analysis to enhance de-

ship digital intelligence trans- cision-making support; train crew to im-

formation. prove system usage capabilities.Dual-fuel powered ships that

Use of can use low-carbon energy Green loan Upstream Evaluate the existing ship power systems

Energy low-carbon sources such as methanol increase cost Medium- and and select suitable dual-fuel power sys-

source energy and LNG may be deployed to reduction rev- long-term Operations tem solutions for retrofitting or newly

sources gradually increase the use pro- enue increase building ships ensuring technical feasibil-Downstream Direct (Scope 1) GHG Emissions

portion of low-carbon energy. ity and economic viability. (Self-Owned Ships for Voyage

Charter)

Zero-carbon fuel-powered Gain an in-depth understanding of cus-Prod- Provision of Green loan Upstream tomer needs for zero-carbon logistics

ucts zero-carbon ships may be deployed to 129922.25

and logistics meet customers' demand for

increase cost services including transport routes cargo

zero-carbon transportation ser- reduction rev-

Long-term Operations types environmental requirements etc.services services vices. enue increase Downstream to provide customized zero-carbon logis-

tCO2e

tics solutions. Indirect (Scope 2) GHG Emis-

sions (Purchased Electricity by

Offices on Shore)

The manufacturing indus-

Increase in try needs to achieve green

demand for transformation and industrial Analyze the demand distribution of the

Market clean energy upgrading thus leading to an Revenue Medium- and Downstream clean energy and chemical transportation 138.13

and chemical increase in demand for clean increase long-term market and reasonably plan transporta-

transportation energy and chemical transpor- tion routes and service networks. Other Indirect (Scope 3) GHG

Emissions per Million Yuan of tCO2etation.Total GHG Emissions Operating Revenue

(Scope 1 and Scope 2)

The expansion of international Conduct in-depth research on interna-

routes and clean energy trans- tional routes and clean energy transpor-

portation business may be Increase in tation markets analyze market demand 121.06

Resil- Diverse layout accelerated to effectively re- green loans Medium- and

Operations competitive landscape and potential

ience spond to risks in the chemical revenue long-term risks; develop a long-term strategic plan 130138.52 tCO2e/ RMB 1 Million (Operat-

industry chain migration and increase Downstream with clear goals paths and timelines for ing Revenue)

trends in clean energy trans- expanding international routes and clean tCO2e

formation. energy transportation business.Definition of Time Horizon: When assessing the impacts of risks and opportunities the time is divided into three dimensions: short-term (2024-2025) Direct (Scope 1) GHG Emis-

medium-term (2026-2030) and long-term (2031-2050). sions (Official Vehicles)

Impact Risk and Opportunity Management GHG Emissions per 78.14

tCO2e

In 2024 the Company actively responded to the challenges posed by climate change. Based on actual circumstances we established

a climate change risk response mechanism and utilized diverse approaches such as internal discussions expert consultations and par-

ticipation in industry exchange meetings to comprehensively and deeply identify potential climate-related risks in the Company's opera-

tions. Based on the Company's operation realities we assessed potential climate risks and opportunities by considering the likelihood of

risk occurrence impact level scope of impact and irreparability of impact. Climate-related risks and opportunities are synthesized and

evaluated based on internal questionnaires and expert opinions.Note: tCO2e tons of carbon dioxide equivalent.

41 42Compliance Leadership: Low-Carbon Enhanced Defense United Cooperation: Shared Responsibility:

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Promotion of Low-Carbon Transformation Environmental Compliance Management

With the acceleration of global climate governance the European Union pushed the emissions trading system (EU-ETS) to offi- During the navigation of the vessel exhaust gases such as sulfur dioxide nitrogen oxides and particulate matter released from the

cially cover the shipping industry on January 1 2024. As an emission reduction tool proposed by the European Union to combat combustion of fuel oil and diesel as well as various types of waste such as domestic sewage oily wastewater and garbage generated

climate change the system is the world's largest transnational emissions trading system which requires shipping companies to during the ships’ operation all affect the health of the marine ecological environment. The Company is fully aware of the potential haz-

pay a proportionate share of carbon allowances based on verified emissions and this proportion will rise year on year. ards and therefore strictly follows environmental protection regulations to properly handle these pollutants ensuring that they do not

In the face of this policy change shipping companies need to accurately grasp the key points of compliance such as carbon pollute the marine water or cause ecological damage.emission accounting quota payment and monitoring reports and explore the path of emission reduction such as energy effi- In addition the Company's liquid hazardous goods transportation business is inherently high-risk and often hazardous during transpor-

ciency optimization and alternative fuel application. In order to deeply understand and effectively implement the regional policy tation. Any leakage that occurs due to human error equipment failure or accidents could not only disrupt the balance of the marine

requirements involved in international business the Company takes the initiative to participate in carbon policy study offer spe- ecosystem and destroy the living environment of marine life but also potentially have a significant impact on the daily lives of coastal

cial training on green shipping and align with international green shipping rules so as to respond to the global climate action residents and local economic activities. Therefore the Company always prioritizes safety and environmental protection actively im-

with practical actions avoid cross-border operation risks and ensure the smooth operation of international business. In 2024 plementing a series of strict and effective safety and environmental protection measures. These include enhancing crew safety and

the Company purchased a total of 3000 EU allowances (EUAs) and used 688 allowances for contract performance this year. environmental protection training regularly inspecting and maintaining vessel equipment and developing comprehensive emergency re-

sponse plans to ensure the safe operation of ships effectively control environmental pollution risks and strive to achieve a harmonious

coexistence between corporate development and ecological protection.Actively Understanding Carbon Policies The Company strictly adheres to the Regulation of the People’s Repub- 2024

Case

Study and Arranging for Carbon Compliance lic of China on the Prevention and Control of Pollution of the Marine During the Reporting Period

Key Performance

Environment by Ships and Their Related Operational Activities the In-

ternational Convention for the Prevention of Pollution from Ships (MAR- no major pollution accidents or significant

POL) and other applicable laws regulations and international conven-

Bernhard Schulte Shanghai ETS Exchange Seminar：In January 2024 the Company participated in the tions. The Company is committed to standardizing the environmental negative environmental impacts occurred

Bernhard Schulte Shanghai ETS Exchange Seminar. At the seminar experts provided detailed interpretations of management of ship operations ensuring that all ship activities comply

the latest regulatory requirements of the EU ETS and EU MRV and clarified the compliance responsibilities of with environmental protection requirements effectively preventing and from the ships operated by the Company.shipping companies at different stages including key time nodes such as the time to submit monitoring plans reducing ship pollution of the marine environment and maintaining the

and emission reports and to pay for quota The seminar also explained operational issues such as how shipping balance of the marine ecosystem.companies can identify and determine their administrative management bodies and how to apply for a Maritime

Operator Holding Account (MOHA).Interpretation and Training of EU Green Shipping Policy：Another EU green shipping policy FuelEU Mari-

time will be officially implemented. To better understand the compliance mechanism of FuelEU Maritime and as-

sist the Company in operating steadily under the new regulations avoiding potential risks and better controlling Governancefuel costs capital expenditures and compliance costs the Legal and Risk Control Department held a “FuelEUMaritime” awareness session in December 2024. The Securities Department the Investment Management De- Environmental Management Systempartment the Administrative Department and the International Business Center participated in this training. Certification Certificate Following the environmental protection policy of “prioritizing preventionand continuous improvement” the Company has established rules such

as the Environmental Protection Management Procedures the Instruc-

tions for Preventing Air Pollution from Ships the Instructions for Pre-

venting Domestic Sewage Pollution and the Instructions for Preventing

Ballast Water Pollution from Ships to ensure the compliance of environ-

mental protection measures. By further standardizing energy-saving and

emission-reduction behaviors reducing energy consumption and pollut-

ant emissions promoting the development of green shipping and using

new technologies and practices in the shipping industry to continuously

improve environmental management performance the Company aims

to achieve the expected environmental performance targets in various

ship operations.

2024

As of the end of the Reporting Period Key Performance

the Company has passed ISO 14001 certification.

43 44Compliance Leadership: Low-Carbon Enhanced Defense United Cooperation: Shared Responsibility:

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The Safety and Environmental Protection Committee under the Board of Directors is responsible for supervising and managing the

safety and environmental protection work of the Company. The General Manager is the first responsible person for environmental man- Strategy

agement and is responsible for ensuring that the environmental management system is integrated into daily operations and business

development.Organizational Chart for Environmental Manage- Type of

ment Risks/Op- Description of Risks/Opportunities Financial Impact Value Chain Link Countermeasures

portunities Impact Duration Impacted

Engine Department

With the increasing global awareness of en-

Develop environmental protection plans as well as ener- vironmental protection governments around

Strengthen the internal environmental

the world are intensifying their regulations management system increase invest-gy-saving plans and measures and conduct comprehensive on maritime environmental protection. Ship ment in environmental protection fa-

reviews every six months inspections have become more frequent and cilities upgrade existing environmental protection equipment and ensure that

Guide and review the energy-saving and emission reduction environmental requirements and standards are becoming stricter. The Company may Short- ship operations comply with more fre-

by ships Policy Risk face the risk of increased operating costs Cost increase and medi- Operations quent inspections and stricter environ-

and the potential liability associated with um-term mental audits;

Monitor the engine room's anti-pollution energy-saving and these regulations. Any failure to comply with

emission reduction measures such environmental compliance requirements Enhance the daily maintenance and

may cause the Company to face international management of environmental protec-

Assist ships in handling technical and equipment issues that sanctions and trade restrictions which could tion facilities to reduce the risk of en-

arise in anti-pollution efforts impact the international business and market vironmental violations caused by facility

Ships access of the Company.failures.Marine Department Establish a sound environmental man-

General Manager agement system clarify the environ-mental protection organizational struc-

ture and responsibilities and supervise

Develop the Company's environmental protection plans and Implement anti-pollu- Liquid hazardous materials are highly pollut- the implementation of environmental

Approve the Compa- ship pollution accident prevention measures

ing. Any leakage (if occurs) due to accidents

tion and energy-sav- may pollute the marine environment violate protection regulations; organize regu-

ny's environmental Investigate environmental risk factors on ships ing emission-reduc- environmental protection regulations of the

lar environmental protection training

protection plans tion measures Legal Risk International Maritime Organization and Chi- Cost increase

Short-

term Operations

to enhance environmental awareness

na result in penalties from the International among all employees;energy-saving plans Guide and inspect anti-pollution work of ships

and measures Regularly conduct en- Maritime Organization and related govern- Formulate comprehensive environmen-

Monitor and analyze the energy-saving and emission-reduc- ergy-saving and emis- ments and cause irreversible damage to the marine ecology. tal protection emergency plans and tion during ship navigation and cargo-related operations sion-reduction reviews regularly conduct emergency drills to

and implement im- improve employees' ability to respond

Report anti-pollution deficiencies and pollution incidents on provements to emergencies and coordinate in deal-

board ships ing with incidents.Report ship pollution

hazards emergencies

and accidents Type of Opportuni- Description of Opportunities Financial Impact Value Chain Link Impact Duration Impacted Countermeasures

Safety and Quality Department ties

Introduce advanced environmental pro-

Investigate environmental risk factors within the Company's With the increasing global emphasis on tection equipment and technologies to

premises environmental protection customers are reduce environmental pollution during

Summarize environmental risk factors and conduct a compre- paying more attention to the environmen- operations;Regularly monitor and eval-

hensive evaluation to identify significant environmental risks tal performance of shipping companies and Operations uate environmental protection-related Market Op- are more inclined to choose companies that Revenue Long- indicators to identify and resolve prob-

portunities meet environmental protection standards. By increase term Downstream lems in a timely manner;

improving environmental performance the

Company can gain a larger market share and Actively participate in international en-

achieve a win-win result in terms of green vironmental protection-related exhibi-

transformation and market competitiveness. tions and activities to expand the Com-

pany's influence and visibility.The Company organizes environmental protection

training activities from time to time covering a wide

range of topics such as measures for pollution pre-

vention and technologies for energy conservation and

emission reduction. The training is conducted by invit-

ed industry experts effectively enhancing the environ-

mental awareness and professional skills of the Com-

pany’s management and crew members.Training on Discharge Standards for Water

Pollutants from Ships

45 46Compliance Leadership: Low-Carbon Enhanced Defense United Cooperation: Shared Responsibility:

About This Message from the About Xingtong Ensuring Stable and Long- Transformation: Leading Line: Safeguarding Building Sustainable Seeking Collaborative Growth Afterword to this

Impact Risk and Opportunity Management Indicators and Goals

The Company in accordance with the ISO14001 Environmental Management System standards sets annual environmental protection

goals clarifies responsibilities establishes tracking and statistical mechanisms and ensures that all business activities comply with envi-

Risk Management Process ronmental protection requirements.Goals Achievement

Risk Identification

Systematically check all pollution

sources on ships each year (such

as NOX SOX waste VOC tanker √

cleaning water ballast water sew- 0 environmental pollution incidents Achieved

age anti-fouling paint and various

chemical tanker cleaning agents) Risk Assessment

to identify environmental hazard Arrange the Safety and

factors. Quality Department to orga- Wastewater discharge (inert gas system wastewater gray √

nize the evaluation of iden- water) ≤ 360 (m3/ship*quarter) Achieved

tified environmental factors

and determine significant

Risk Response environmental factors.Analyze the operation of the safety Noise in living areas (including underwater sound interference) √

and quality management system Risk Monitoring ≤ 60 (dB) Achieved

(SQMS) each quarter to identify

weaknesses and propose improve- Conduct SQMS operational

ment suggestions. analysis every quarter identify

weaknesses and propose im-

provement suggestions.Track and verify the corrective

actions and improvement plans

to ensure problems are effec-

tively resolved and risks are ef-

fectively controlled.Emergency Plans and Drills

Conduct ship-to-shore emergency drills

The Company has formulated the Ship and Shore Emergency Response Procedures and other emergency manuals which clearly

define the entire process from emergency contact and emergency response to emergency action when emergencies occur on

board. Detailed emergency response plans have been developed including the Emergency Response Plan for Ocean Pollution

from Ships the Emergency Response Plan for Oil Spill from Ships and the Ship Waste Management Plan to ensure rapid and

effective actions in all emergency situations. Ships are required to conduct scheduled training and drills to ensure that each crew

member is familiar with emergency response procedures and their responsibilities.In addition the Company regularly organizes joint ship-to-shore emergency drills at least once a quarter to test the effectiveness

of the emergency response plan and the smoothness of ship-to-shore communications strengthen the team's ability to collabo-

rate and coordinate and improve its crisis management efficiency.

47 48Compliance Leadership: Low-Carbon Enhanced Defense United Cooperation: Shared Responsibility:

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Management of Ship Sewage Management of Waste Gas

The Company has formulated relevant rules and regulations such as Environmental Protection Management Procedures and the In- The Company has established regulations such as the Instructions for Preventing Air Pollution from Ships to clearly define the manage-

structions for Preventing Air Pollution from Ships to regulate the activities of discharging oily sewage domestic sewage and ballast wa- ment requirements and operational procedures for ship exhaust emissions.ter strengthen the management of environmental protection on board ships and ensure that all treatment measures such as discharges

comply with the requirements of international conventions and domestic laws and regulations to gradually reduce the generation and

discharges of sewage and garbage from ships.Assign specialized personnel to regularly maintain and service anti-pollution

equipment and test pollution monitoring devices to ensure the effectiveness

and reliability of pollution control equipment and procedures.Prevention of

For operations such as cleaning tanker discharging ballast water and painting leakage of toxic

in harbor waters obtain prior approval from the relevant departments as re- and hazardous

quired and fully control the pollution risks of the related operations. substances

Oily Wastewater Domestic Wastewater Ballast Water

Adopt low-emission and high-efficiency equipment and clean fuel technologies

promote the implementation of technological reforms for ship environmental pro-

Ships are equipped with anti-pollu- Ships are equipped with domes- For ballast water containing tection equip all ships with volatile organic compounds (VOCs) collection devic-

tion equipment including oil-water tic sewage treatment devices and in particular oily or noxious Reduction in es and install selective catalytic reduction (SCR) denitrification devices for new

separators and oil content meters operate them to ensure sewage liquids ships must check the gaseous pollutant ships.and these devices are regularly in- is effectively treated. During port quality of the water to ensure emission

spected and maintained to ensure stays ships with sewage collection that it is free of contamination Strictly standardize the operation maintenance and overhaul processes of equip-

reliable operation. Oily wastewa- cabinets shall not discharge sew- before it is pumped into the ment and treatment devices to avoid the escape of gases during operation and

ter is strictly stored in designat- age directly. Ships without sewage ballast water and comply with reduce the emission of gaseous pollutants such as nitrogen oxides sulfur dioxide

ed compartments and effectively collection cabinets shall treat sew- the anti-pollution convention particulates and VOCs in a multi-dimensional manner.treated through oil-water separa- age before discharge. All opera- when it is discharged and all

tors or sent to shore for treatment tions must be documented and a operations are recorded in the

with the treatment process record- proof of receipt must be retained. relevant logbooks.。

ed in detail in the oil treatment log.

2024

Waste Gas Emissions Key Performance

2024

Wastewater Discharge from Ships Key Performance NO Emission per Million Yuan of

Nitrogen oxide (NOX)

Operating Revenue

Total Wastewater Discharge from Ships (Wastewa-

ter Discharged into Sea and Collected On Shore) Wastewater Discharge Intensity 2899.76 19.70 k g/RMB 1 Million tons (Operating Revenue)

123860.87m3 84.14m3/RMB 1 Million (Operating Revenue)

Discharged Water(Discharged water that complies with relevant regulations can be discharged into the sea directly

or after meeting relevant standards upon treatment)

Sulfur oxides (SO ) SOX Emission per Million Yuan of X

116439.78 Operating Revenuem3

306.83 208.43 kg/RMB 1 Million tons (Operating Revenue)

Wastewater Collected and Treated Onshore

7421.08m3

Domestic Wastewater Sewage from Engine Room Sewage from Shampoos Room

35.00m3 231.13m3 7154.95m3

49 50Compliance Leadership: Low-Carbon Enhanced Defense United Cooperation: Shared Responsibility:

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Disposal of Wastes Improvement of Resource Efficiency

The Company has formulated regulations such as Environmental Protection Management Procedures and Ship Waste Management Plan Upholding the management philosophy of “environmental protection energy conservation and low carbon” the Company continuously

to comprehensively regulate all aspects of waste classification collection storage treatment and record keeping to ensure that all kinds improves the energy efficiency of ships attaches importance to the utilization of resources strengthens the management of resource

of wastes generated in the course of ship operation are disposed of in a scientific reasonable and environmentally friendly manner and consumption in ship navigation and related business activities and guarantees the transportation service while minimizing the depen-

continues to optimize the management process to reduce the generation of garbage from ships and is committed to the maintenance dence on and consumption of natural resources. Moreover the Company actively explores and applies new technologies and processes

of ecological balance. During the Reporting Period the compliant disposal rate of wastes was 100%. to promote its green and low-carbon transformation and support the decarbonization process of the shipping industry.Prevention of Oil Spill Incidents Energy Management

Adhere to the philosophy of “prioritizing safety in pollution prevention” the Company strengthened the emer-

gency oil spill incidents including ensuring that operating ships are certified and hold anti-pollution certificates.Standard disposal procedures are established for operations such as ballast water discharge and deck opera- Governance

tions which may lead to oil spills and operational drills are conducted. Crew members' awareness of pollution

prevention and emergency operational capabilities are strengthened to fundamentally ensure “no spills or leaks”. The Company in strict compliance with the IMO's Ship Energy Efficiency

Management Plan and the Measures for Ship Energy Consumption Data

and Carbon Intensity Management of the Maritime Safety Administration

has established systems and procedures such as the Energy Conservation

Control of Ship Wastes and Emission Reduction Management Procedures. Multiple measures are taken to upgrade the green performance of ships ensure energy is used

Regulating the emission behaviors in accordance with the International Convention for the Prevention of Pollu- reasonably and efficiently and minimize negative environmental impacts

tion from Ships (MARPOL) and the Discharge Standard for Water Pollutants from Ships the Company adheres on the marine environment and waste generation.to the principle of prioritizing on-shore treatment improves the operational processes and supporting facilities

for the generation collection storage and recycling of ship garbage and optimize management to progressively The General Manager is responsible for approving the Company's energy

reduces the generation of ship garbage. conservation and emission reduction measures; the Engine Department is

responsible for developing the Ship Energy Efficiency Management Plan

and providing guidance and monitoring of ship processes urging ships to

collect and report their energy efficiency data monthly and conducting a

2024

Key Performance comprehensive review of energy conservation and emission reduction ef-

Emission of Wastes forts every six months; the Marine Department is responsible for analyz-

ing the energy conservation and emission reduction status of ship voyages

and optimizing energy-saving and emission-reduction indicators and mea-

Volume of non-hazardous waste generated generation intensity of non-hazardous waste sures year by year based on the results.

352.80m3 0.24m3/ RMB 1 Million (Operating Revenue)

Strategy

Volume of hazardous waste generated Generation intensity of hazardous waste Risk Value

Type Description of Risks

Financial Impact Dura-

Impact tion Chain Link Countermeasures

518.84m3 0.35 Impactedm3/ RMB 1 Million (Operating Revenue)

Fuel is the energy source that provides Optimize ship energy efficiency improve fuel uti-

power for daily ship operations and fluc- lization efficiency and reduce fuel consumption

tuations in fuel prices directly affect the costs.Market operating cost changes of the Compa-

2024 Risks ny. Fuel prices fluctuate significantly due Cost increase Short-term Operations

Strengthen market monitoring and analysis

to factors such as geopolitics and trade closely follow international fuel market trends Key Performance

Waste Discharge wars which may lead to an increase in

reasonably plan fuel replenishment strategies

the Company's fuel procurement costs along vessel routes and utilize professional mar-

and raise operating costs. ket analysis teams or tools to forecast fuel price trends and optimize procurement strategies.Waste Discharged under MARPOL Volume Discharged into Type Value

Annex V (Food Waste) Volume Burned in Incinerator Collection Facilities of Op- Description of Opportunities Financial Impact Chain portu- Impact Duration Link Im- Countermeasures

nities pacted

91.88m3 8.18m3 771.59m3 The powerful data analysis and comput-

Tech- ing capabilities of AI large models are lev-eraged to accurately calculate the ships’ Integrate AI-powered intelligent analysis into no- energy consumption and optimize the Reduction in fleet operations enhance the refined manage-Notes: logical speed fuel configuration and refueling costs Long-term Operations ment of vessel operations build a fleet with re-

(1) Non-hazardous waste mainly includes food waste paper products rags glass metal bottles ceramics and other materials generated during the ship operation of the Oppor- plan according to different sailing condi- fined operations save energy reduce costs and

Company. tunities tions thereby reducing fuel energy con- achieve green and sustainable development.

(2) Hazardous waste mainly includes plastics cooking oil incinerator ash operational waste electronic waste oily sludge and other materials generated during the ship sumption.

operation of the Company.

51 52Compliance Leadership: Low-Carbon Enhanced Defense United Cooperation: Shared Responsibility:

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Impact Risk and Opportunity Management Green Transformation of Ships

To address the uncertainties brought about by international oil price fluctuations geopolitical conflicts and changes in energy supply

and demand the Company is enhancing the energy risk management. We closely monitor international oil prices and supply-demand The Company actively promotes the green transformation of ships including advancing energy-efficient ship design and improving en-

changes analyze and assess the likelihood and impact of fuel price fluctuations and formulate corresponding risk management strate- ergy efficiency which lays a solid foundation for achieving green shipping goals. In recent years all newly built ships comply with the

gies. relevant green ship requirements of the Rules for Green-Eco Ships 2022 of the China Classification Society. In addition the Company in

line with the “One Out One In” policy of the Ministry of Transport replaces older ships with newly built ships builds younger and high-

The Company establishes a fuel price early warning mechanism strengthens market monitoring and analysis and reasonably plans fuel

er-end ships and enhances the competitiveness and market service capacity of ships.replenishment schemes along ships’ routes. Leveraging professional market analysis teams or tools we predict fuel price trends and

reduce the impact of fuel price fluctuations on business operations by means such as optimizing procurement strategies and locking in Keeping pace with industry development trends the Company actively practices green low-carbon and intelligent shipping. Based

procurement prices in advance thereby achieving the goal of controlling energy risks. on the signing of contracts for the building of 25900-DWT methanol dual-fuel stainless steel chemical tankers in 2023 the Company

signed the contracts for another two ships of the same type in 2024. As of the end of the Reporting Period the Company has four

25900-DWT methanol dual-fuel stainless steel chemical tankers under construction and the fleet continues to achieve cleaner and

Indicators and Goals greener development.The Company continuously improves energy conservation and emission reduction practices for ships and sets specific requirements for Energy Efficient Design of New Ships

ship energy consumption-related goals and indicators thus promoting the rational and effective use of energy. Conduct lightweight design and hull shape structure

optimization for newly built ships apply energy-saving

Implementation of Fuel Substitution devices and anti-friction coatings on existing ships to

2024 reduce navigation resistance and improve energy ef-Use of Methanol as an Alternative

Indicator Key Performance ficiency.Fuel for New Ships

Intelligent Energy Efficiency Man-

Total Fuel Consumption (Self-Owned agement(DOSS-E)

Total Energy Consumption Ships for Voyage Charter) Provide real-time monitoring and

evaluation of ship energy efficiency

information

59500.58 tce 0.0414million tons Put forward optimization proposals

including speed longitudinal inclina-

tion and fouling to improve opera-

tional energy efficiency reduce fuel

Fuel Oil Diesel costs and enhance the energy effi-

Energy Efficiency Retrofits for ciency management level.Older Ships

0.0289 0.0125 Recycling of Waste Heat: Use million tons million tons the waste heat from boilers to

insulate cargo and reduce fuel

consumption by retrofitting theTotal Electricity Consumption (Office) Gasoline (Official Vehicles） boilers and waste heat recovery Optimization of Operational

systems on ships. Efficiency

242211.37 35182.73 Speed Adjustment: Determine minimum ballast kWh L amount and optimal draft difference ensure best

speed and reduce the fuel unit consumption while

ensuring the rudder efficiency and sufficient pro-

pulsion effectiveness based on the ships’ load and

Ship Fuel Consumption per Unit (Self-

Owned Ships for Voyage Charter) ballast condition during navigation.Selection of the Best Route: Determine the optimal

38.51 routes for voyages and shorten the sailing time of Enhancement of Energy-saving Pro- ships based on the needs of production and op-

tce/RMB 1 Million (Operating Revenue) motion eration as well as meteorological and other condi-

Conduct energy-saving and emission-re- tions in the principles of safety and efficiency.duction promotional activities from time Green Trans- Daily Management: Replace the fleet’s lighting with

to time and continuously publicize ener- formation of energy-saving lamps use shaft generators during

gy-saving and emission-reduction man-

Ships voyages reduce the fuel consumption of the gen-agement objectives technical guidance erator and apply self-polishing hull anti-fouling

for project identification and operation paint to maintain hull cleanliness reduce resis-

Note：tce，ton of standard coal equivalent. and the application of new technologies. tance and lower ships’ energy consumption.

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Material Utilization

Case Xingtong 17 Obtained i-ship (E) Class Notation

Study The Company actively practices material recycling fully promotes the recycling of packaging materials and used materials realizes

lightweight and reduced packaging and optimizes and improves management processes to effectively raise the material utilization rate.On December 27 2024 “Xingtong 17” started its maiden voyage. As an intelligent ship the

ship is especially equipped with an advanced ship energy efficiency management system and

therefore won the i-Ship (E) class notation granted by the China Classification Society (CCS). Key Measures

It is Xingtong Shipping’s the first ship obtaining the class notation. “Xingtong 17” is also one

of China’s first batch of ships obtaining the i-Ship (E) class notation for intelligent ships. This i-Ship（E）

notation is specifically granted to ships equipped with intelligent functions such as intelligent Reduction in Use of Packaging Materials Material Protection During Transportation

energy efficiency management highlighting the advanced level of the Company in intelli-

gence and energy efficiency management. Promote and support suppliers in reducing the

use of product packaging and encourage the use

of reusable packaging. Prevent leakage detachment and damage

Training on the Current Status and Outlook during transportation to ensure the effective uti-Recycle packaging materials as much as possible

Case lization of materials and reduce waste.Study of Green Ship Development after the product is delivered to the ship to mini-

mize packaging waste generated

In December 2024 the Company implemented the philosophy of green development and responded to the urgent de-

mand for green low-carbon and environmental protection in the global shipping industry and successfully held a training

event themed “Current Status and Outlook of Green Ship Development”. The purpose of this training was to further en- Reuse and Recycling of Waste Materials Reduction in Procurement of Disposable Items

hance the employees’ understanding of green ship technologies and promote the Company’s continuous development and

innovation in the field of green shipping.Recycle and repair old tools equipment etc. Reduce the purchase of disposable items to

to extend their service life and reduce resource minimize the consumption of single-use materi-

waste. als and the generation of wastes.Water Resource Utilization

The Company in strict compliance with the requirements of the

Water Law of the People's Republic of China the Law of the Peo-

ple's Republic of China on the Prevention and Control of Water Pol- Green Office

lution and other applicable laws and regulations continuously im-

proves water resource management through process optimization The Company advocates green office launches the Green Office Initiative and encourages every employee to start from the

optimizes the tanker cleaning operation process and take other small things around them and jointly promote the green office aiming to create a greener and more sustainable working envi-

measures to reduce water resource usage and improve water re- ronment.source utilization efficiency.The Company has reduced the amount of water used for tanker Reasonably adjust the air conditioning Use double-sided printing paper display

cleaning by adopting high-efficiency low-waste equipment and op- temperature to be no lower than 26°C in

Energy materials on electronic screens at meetings erational methods such as replacing dual-nozzle tanker cleaning summer and adopt electronic visa for seafarer con-

machines with single-nozzle machines and promoted the recycling Conserva- Encourage the shared use of equipment Paper tracts to reduce paper consumption.of tanker cleaning water and domestic sewage to increase the uti- tion and with high energy consumption such as Saving

Emission Promote the use of email cloud storage lization rate of water resource. For the tanker cleaning operations projectors and photocopiers to reduce and other tools to reduce the transmission

for cargo change the Company develops reasonable and detailed Reduction idle time and increase equipment utiliza- and storage of paper documents achieving

tion rates

tanker cleaning procedures based on the characteristics and re- paperless office operations.quirements of the current and next voyages to ensure the cleaning

quality shorten cleaning time reduce water and steam usage and

decrease wastewater discharge etc.

2024

Indicator Key Performance Encourage walking cycling or using pub- Green- Place green plants in the office to improve Green lic transportation for commuting to re- air quality enhance the comfort of the

duce carbon emissions and help protect ing with

Total water consumption Water consumption for Water consumption for Water consumption density

Mobility

Plants working environment and create a green

offices ships (ships) the blue sky and white clouds. atmosphere.

131784.32 3 1835.30 3 129949.02 3 88.28 m /1RMB 1 Million m m m (Operating Revenue)

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Protection of Ecosystem and Biodiversity

The ocean is the blue home where human beings rely on for survival and development. The We also take measures (such as optimizing the design of shipping routes strengthening the manage-

Company is well aware of the vital importance of protecting the marine ecology. Adhering to ment of ballast water and implementing the implementation of noise reduction in navigation) to ac-

the philosophy of green operation we take the initiative to identify and assess the potential tively protect the marine biodiversity and ensure that the Company's business operations do not cause

impacts of ship navigation and related business activities on biodiversity and effectively re- any damage or interference to the marine ecology.spond to and continuously monitor the identified risk factors.Optimization of Management of Bal- Reduction of Naviga-

Routes last Water tion Noise

When planning navigation routes we fully uti- Adhering to the requirements of the Inter- The Company prioritizes noise reduction

lize the automatic route inspection function of national Convention for the Control and during the ship design and construction 2024

the Electronic Chart Display and Information Management of Ships' Ballast Water and phases adopts low-noise equipment and re- Key Indicators Key Performance

System (ECDIS) setting Particularly Sensitive Sediments we install efficient Ballast Water duces speed when approaching Particularly

Sea Areas (PSSA) and important marine bio- Management Systems (BWMS) on ships and Sensitive Sea Areas and marine biodiversity

diversity protection areas as no-go areas. This standardize ballast water treatment proce- protection zones thus effectively reducing Percentage of Applicable Ships Implementing Ballast

ensures that ships avoid these areas during dures including cleaning and inspection be- noise and vibration from the propeller and

navigation effectively protecting biodiversity. fore ballast operations conditions and meth- engine room equipment. Measures are taken Water Exchange/Treatment in the Fleet

ods for ballast water exchange and key steps to reduce unnecessary noise sources such as

for handling sediments and preventing its deck operations to minimize noises and pro- 100%

entry. We ensure that ballast water discharge tect the ecological environment and biodiver-

during navigation does not cause abnormal sity of these sensitive marine areas.migration of marine organisms maintaining

the health and stability of marine ecosystems.

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Enhanced Defense Line:

Safeguarding the

Safety of Shipping

Safety is an important guarantee for the Company's steady development. Treating safety as a

commitment and responsibility we always adhere to the safety red line strictly fulfill safety

duties and continue to provide solid support for the high-quality and sustainable development of

Xingtong Shipping.

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Governance of Navigation Safety

The waterway transport of liquid dangerous goods is extremely dangerous. Marine accidents caused by collision grounding stranding Management Hierarchy

fire or explosion may occur during the transportation of ships and safety incidents may also happen due to improper procedures during

tanker cleaning loading and unloading operations. Strictly following domestic and international laws regulations and conventions such

as the Law of the People's Republic of China on Work Safety and the Regulations of the People’s Republic of China on the Safety The Company has established a Safety and Environmental Protection Committee under the Board of Directors with the General Manag-

Operation and Pollution Prevention Management of Ships the Company adheres to the management principle of "putting safety first er serving as the primary responsible person for safety production and overseeing safety goals and key tasks. The Company’s manage-maintaining health protecting the environment ensuring quality and prioritizing prevention”. We actively absorb international standards ment team is responsible for setting safety objectives and measures and ensuring their achievement. The Maritime Department and the

and the world's leading safety management experience continuously improve our safety management system and provide safe envi- Engine Department are responsible for managing and implementing safety indicators and continuously improving the safety capabilities

ronmentally friendly and high-quality transportation services for our customers. of all employees.The Company has developed a Safety Production Responsibility System and signs a safety responsibility agreement with each depart-

ment and each responsible person annually to ensure that all employees strictly fulfill their primary responsibility for safety production.An assessment and reward-punishment mechanism has been established to evaluate the performance of relevant personnel in achiev-

ing the safety production targets based on the Safety Production Goal Assessment and Reward-Punishment Measure to encourage

2024

Key Performance ship/shore employees to implement the Company’s safety and environmental protection policies.During the Reporting Period

the Company invested RMB 15.78 million in safety production and implemented safety management in an orderly Training and Assessment

manner and no safety accidents occurred in the Company throughout the year.In accordance with the SQMS Personnel Training Procedures the Company formulates SQMS Annual Training Plan every year and im-

plements SQMS training and assessment for new recruits and transferred personnel captains and other related shore/ship personnel

to ensure that shore/ship personnel have the ability to execute and meet the Company's safety health environmental protection and

quality requirements thereby guaranteeing the standardized operation of the SQMS system.Governance

Based on international and professional management requirements we establish a safety quality management system (SQMS) tailored Certification Audit

to our characteristics. The Company has also formulated a series of safety management regulations such as the Safety Management

Manual and the Guidelines for Ship Operation and Management to continuously improve its refined safety management level. As of In accordance with the established management procedures such as the

2024 the Company has been honored as a “Safety and Integrity Company” for 7 consecutive years. Multiple ships and captains of the Internal Audit Procedure and the Effectiveness Evaluation and Manage-

Company have been recognized as “Safety and Integrity Ships” and “Safety and Integrity Captains” by the Maritime Safety Administra- ment Review Procedure the Company develops and implements an inter-

tion of the Ministry of Transport respectively. nal audit plan every year to standardize the audit of the Company's safety

management system execution on both shores and ships. The Company

also regularly produces SQMS system operation analysis reports and effec-

tiveness evaluation reports to promptly implement corrective actions for

non-compliant items and ensure the effective operation and continuous im-

provement of the safety quality management system.During the Reporting Period the Company ensured the safety quality man-

agement system complied with applicable international and domestic rules

guidelines and standards such as the ISM/NSM regulations and main-

tained the validity of relevant certifications such as the domestic/interna-

tional DOC (Document of Compliance) SMC (Safety Management Certifi-

cate) and ISO 45001 Occupational Health and Safety Management System

Certification.Occupational Health and Safety Management

System Certification

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Strategy

Impact Risk and Opportunity Management

Financial Impact Impact Risk Type Risk Description Impact Duration on Value CountermeasuresChain

The Company builds and improves the dual prevention mechanism of safety risk classification and control and hidden danger investi-

Companies in the shipping industry are gation and management formulates procedures such as the Procedures for the Identification Evaluation and Control of Occupational

required to comply with the regulations The Company strictly adheres to domestic

of domestic and international maritime and international laws regulations and con- Health Hazards and continuously improves the risk control and hidden danger investigation and management ability of ship and shore

Legal Risk organizations and other regulatory au- Costincrease Short-term Operations ventions absorbs international standards thorities. Violations of applicable laws and adopts world-leading safety manage- personnel to effectively control safety health and environmental protection risks and ensure the safety of ships.and regulations could result in significant ment practices continuously improving its

fines litigation or penalties such as or- safety management system.ders for suspension and rectification.Risk Grading and Control

In the course of daily operations occupa- Establish a safety risk classification and con-

Operational tional health or safety accidents may lead Opera-

trol mechanism along with a dual preven- The Company classifies safety risks into “risks related to operational activities” “risks related to facilities and equipment” and “risksRisk to a decline in the Company’s shippingCost Short-term tionsDown- tion mechanism for hazard identification and related to occupational disease hazards” and establishes a List of Risk Sources and a List of Major Risk Sources covering operational

service efficiency or even business inter- increase stream treatment and take timely response mea-

ruptions. sures based on identified hazards to prevent activities of both ships and shore-based operations. We standardize risk identification assessment and grading criteria implement cor-and mitigate significant safety risks.responding control measures based on safety risk grading and organize regular safety risk reviews to prevent major safety risks from

the source and eliminate and curb major and catastrophic accidents.Penalties from regulatory agencies as Improve the Company's emergency man-

well as occurrences of occupational agement system establish standardized

Reputation health and safety accidents may reduce RevenueDe- Operations emergency mechanisms for various types of

Risks customers’ trust in the Company leading crease Long-term Down- safety accidents and continuously assess and

to a decrease in market share and dam- stream improve through comprehensive ship/shore

age to its brand image. emergency drills to ensure effective control Hazard Identification and Managementof safety incidents.The Company classifies accident hazards into “basic management accident hazards" and "production site accident hazards” and stan-

dardizes the scope cycle responsible personnel and system monitoring for hazard identification and rectification. Through internal and

external inspection methods such as self-inspection shore-based supervisor visits internal and external audits maritime safety inspec-

Opportuni- Impact Description Financial Impact on Value Countermeasures tions and on-site supervision checks the Company promptly identifies and eliminates accident hazards. For major hazards the Compa-ty Type Impact Duration Chain ny forms dedicated investigation teams to organize assessments in a timely manner develops major accident hazard rectification plans

and conducts follow-up assessments after rectification with designated personnel verifying and closing relevant cases.In today’s market environment custom-

ers are paying more and more attention Continuously optimize the safety and qual-

Market Op- to shipping safety. Outstanding shipping Opera- ity management system enhance shipping

portunities safety performance will help the Com-

Revenue Long-term tionsDown- safety management levels provide custom-

pany establish a good brand image win increase stream ers with safe and high-quality shipping ser-

a higher reputation in the industry and vices and earn customer trust.gain more favor from customers.Identification and Rectification of

Hidden Hazards

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Emergency Management Indicators and Goals

In accordance with the Emergency Response Law of the People's Republic of China the Measures for the Administration of Emergency

Response Plans for Production Safety Accidents and other applicable laws and regulations the Company formulates a series of emer-gency management systems and procedures such as the Emergency Response Handbook and the Emergency Response Procedures The Company constantly builds a strong safety defense around the long-term safety goal of “zero accidents zero casualties zero pol-for Ships and Shores to form a standardized emergency management system. For all types of safety incidents such as ship operational lution zero detention zero cargo loss” formulates the annual production safety management objectives (KPIs) accordingly and carries

safety toxic liquid leakage severe weather damage and pirate hijacking the Company has established a standardized emergency mech- out quarterly tracking statistics to ensure the effective implementation of all safety work.anism between shores and ships covering emergency contact emergency response and emergency actions to ensure effective control

of ship risks and accidents.To test the scientificity practicability and operability of emergency plans and improve the ability to handle accidents appropriately in

emergency situations the Company updates the annual ship/shore joint drills plan every year according to the Five-Year Plan for Ship/ During the Reporting Period

Shore Joint Drills conducts comprehensive ship/shore emergency drills and take continuous evaluation and improvement measures to

ensure that such plans can cover all emergencies identified by the Company in five years. During the Reporting Period the ship safety and anti-pollution management met the Company's established require-

ments and successfully achieved the overall goals of five “zeros” and three “100%s”.Case Study: Ship Anti-theft and Anti-hijacking Drills

S/N Safety Management Objectives Achievement

In March 2024 the Company carried out an emer- 1 Zero Accidents Achieved √

gency drill of anti-piracy and anti-hijacking of ships

which further urged the ship/shore-based person-

nel to be proficient in emergency response process

and improve the effectiveness of crisis management 2 Zero Casualties Achieved √

through the training and pre-drills of emergency

response procedures instructions emergency re-

sponse plans and equipment testing. 3 Zero Pollution Achieved √

4 Zero Detentions Achieved √

5 Zero Cargo Losses Achieved √

6 100% Pass Rate in External Audit Achieved √

7 100% Pass Rate in Inspection by Oil Companies Achieved √

8 100% Success Rate Against Typhoons Achieved √

Note: “Zero cargo loss” generally refers to a cargo loss rate that does not exceed the limit stated in the transportation service contracts.

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Protection of Safety and Health

Protection of Navigation Safety

Case Study: Special Fire Safety Action for Ships

Based on its SQMS management system the Company deeply implements and continuously improves ship safety management work

from aspects such as ship operation management maintenance and fire safety to ensure the safe navigation of company ships.Ship Operation Safety Management In May 2024 to thoroughly implement national laws and

regulations on ship fire safety management prevent ship

fire accidents and enhance ship fire safety awareness

The Company has developed procedures such as the Shipboard Operation Plan and Instruction the Company organized a special ship fire safety action.Formulation Procedure and other procedural documents. For shipboard operations (including key Through fire safety publicity fire safety inspections and

Management of operations and daily operations) detailed operating procedures applicable to each ship based on

Ship Operation its characteristics must be formulated. Through training guidance supervision and inspection rectification activities the Company aims to comprehen-

the Company ensures that all operations are strictly executed in accordance with applicable reg- sively improve the fire prevention capabilities and man-

ulations laying a solid foundation for safe navigation. agement level of ships ensuring that ships maintain a

safe and effective fire prevention status throughout their

The Company has developed the Ship and Equipment Maintenance Procedure strictly approves long-term operation.the Annual Ship Maintenance Plan and performs maintenance and servicing of ships and equip-

Ship Maintenance ment at appropriate intervals as planned. The Company regularly tracks the execution process and promptly eliminates equipment defects thus ensuring that the ship and equipment meet do-

mestic and international regulatory requirements and that the ships are in normal operation and

suitable for cargo transport.The Company conducts daily quarterly and semi-annual monitoring inspections of ship/shore Inspection on Ship Safety

operations. Non-conformities if identified are analyzed comprehensively and SQMS operation sit-

uation and results are promptly reported to senior management of the Company. Any issues en-

Ship Supervision countered in the operation of SQMS are resolved to ensure the effective execution of the SQMS

and Control system. Additionally the Company tracks and monitors the ship's dynamics during navigation by Focusing on implementing Flag State Control (FSC) Port State Control (PSC) SIRE (Ship Inspection Report Program) Inspection and CDI means such as independent monitoring and ship reports. The Head of the Marine Department Inspections the Company continuously enhances the awareness of the need for inspections among all staff strengthens preparation for

tracks the ships under their control throughout the voyage. Through activities such as accom-

panying the ships during their voyages and conducting onboard inspections they ensure that inspections and promptly corrects any deficiencies identified during inspections as required. This ongoing effort aims to continuously

navigation standards are maintained and that navigation safety is ensured through joint efforts. improve the Company's ship safety management capabilities.The Company solidly promotes fire safety management work promptly equips and updates fire 2024

Fire Safety of safety equipment regularly maintains and services it and continuously strengthens crew mem- During the Reporting Period Key Performance

Ships bers' fire safety awareness education. Fire drills are conducted on schedule. Furthermore the Company organizes large-scale fire safety inspections and conducts analysis and summaries

each quarter to ensure fire safety on ships.Number of PSC Ship Number of PSC Ship Number of FSC Ship Number of FSC Ship

The Company has developed the Stakeholder Control Procedure which outlines the methods Inspections Detentions Inspections Detentions

and requirements for managing stakeholders that may pose environmental or occupational health

Safety Management and safety risks. The Company signs a Safety Agreement for External Personnel with stakehold-ers to clarify mutual safety responsibilities. Through safety education supervision and inspec- 27 0 38 0

for Related Parties tions the Company promptly corrects any violations and ensures that stakeholders implement

the Company’s requirements for environmental protection occupational health and safety re-

quirements etc.The Company keeps pace with the global development of maritime information technology. Number of SIRE Inspec- SIRE Inspection Pass Number of CDI Inspec- CDI Inspection Pass

Through the application of industry-leading shipping safety management concepts and advanced tions Rate tions Rate

technologies the Company has established high-throughput satellite broadband systems CCTV

smart monitoring AI behavior recognition and navigation safety assistance systems. These sys-

tems enable the collection of ship navigation data engine room equipment operation data per-

Empowerment with 64 100 % 6 100 %sonnel violation behavior alerts and other data to build an integrated smart navigation safety

Digital Application management platform for ship and shore operations. This significantly reduces safety accidents

caused by equipment malfunctions or human factors such as machine failures personal injuriesship deviations and anchor dragging. The Company is gradually achieving “all-process all-ele-ment all-time domain” intelligent navigation safety management for all ship types in the fleet

creating a globally leading intelligent navigation safety brand in the industry.

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Promotion of Occupational Health

Safety and Health of Personnel

The Company has developed the Occupational Health Education and Training System and utilized various methods such as bulletin

boards meetings training on-site occupational disease hazard explanations and occupational disease hazard warning signs to widely

promote occupational health. The content covers regulations knowledge systems and operating procedures concerning occupational

The Company has developed a series of occupational health and safety regulations including the Occupational Health Management disease prevention and control and the correct use of occupational disease protection equipment in order to continuously enhance

System. We fully utilize the functions and roles of the Ship Safety Committee and safety officers promptly identify shortcomings and employees' self-protection awareness and abilities.risks in ship management activities and take relevant corrective actions to prevent occupational accidents injuries and diseases aboard

and safeguard the health and safety of the crew.Training on Occupational Health Notification Card of Occupational

Knowledge Disease Hazard

Protection of Occupational Health

In response to all operations with potential hazards such as the use of chemicals in ship engine rooms and the surface operation on

high-temperature equipment the Company has developed systems such as the Occupational Disease Protection Equipment Manage-

ment System and the Occupational Disease Hazard Protection Facilities Maintenance and Repair System. All ships of the Company

have been equipped with sufficient personal protective equipment and facilities as required including safety helmets face shields and

chemical protective gear and are provided with relevant operation manuals operating procedures and related guideline documents.The daily maintenance and care of protective facilities are implemented to ensure the normal and safe operation of equipment compre-

hensively promote the standardization of ship operations and guard the safety of personnel.Occupational Health Monitoring

The Company formulates systems such as the Occupational Health Monitoring and its File Management System invites third-party

agencies to carry out workplace occupational disease hazards testing every year and organizes occupational health checkups for em-

ployees engaged in exposure to occupational disease hazards and informs employees of the relevant test results faithfully. We actively Care about Mental Health

take measures to improve working conditions and protective facilities according to rectification recommendations and continuously im-

prove the health protection work. In addition the Company standardizes the management of employee occupational health monitoring

files provides relevant materials for employees' occupational disease diagnosis and identification and accepts investigations and super- The Company places great importance on the mental health of its employees. We actively organize psychological health lectures and

vision from health management departments. training sessions led by external professionals such as psychological counselors and provide psychological counseling assistance and

guidance to employees aiming to improve their mental health and create a healthy working environment together.Occupational Health Checkups Training on Psychological Counseling

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Construction of Safety Culture Safety Integrity Honors

The Company always places safety management at the core strategic position and continues to increase investment in safety with

unwavering determination. With significant advantages in safety management system construction risk prevention mechanisms and

Safety Culture Philosophy strengthened crew safety training the Company has received a series of highly prestigious honors such as “Safety and Integrity Com-pany” “Safety and Integrity Ship” and “Safety and Integrity Company”. This is not only a high recognition from the industry for the

Company’s past efforts but also a strong motivation to inspire the Company to move forward. In the future the Company will continue

The Company understands the importance of safety culture adheres to its original intentions and maintains a spirit of diligence dedica- to promote high-quality development by adhering to stricter safety management higher service quality and more innovative business

tion striving and progress. Striving to practice proper worldview outlook on life and sense of values and achieve industrial moderniza- models.tion and agricultural modernization the Company guided by the “Ten Beliefs” and “Ten Safety Principles” is committed to realizing the

five "zero" goals. The Company continually deepens innovates and enhances ship safety management.In 2018 the Company was awarded the title of “Safety Integrity Company” by the Maritime Safety

Safety Integrity Administration of the Ministry of Transport. As of 2024 the Company has maintained this honor for

Company 7 consecutive years and become one of the few bulk liquid chemical shipping companies gaining

such a honor.Ten Safety Culture Principles

Safety Integrity

Ships In 2024 there were 8 ships with valid honor certificates of “Safety and Integrity Ships”.01 02

Safety is the first productive force and core Zero tolerance for anything that goes against

competitiveness. safety.Safety Integrity

Captains In 2024 there were 12 captains with valid honor certificates of “Safety and Integrity Captains”.

0304

Always be alert even in peace and everyone is Follow commands obey orders standardize

responsible person for safety. operations and integrate drills and training. Safety Culture Activities

Safety culture education as a key initiative to enhance employees’ safety awareness and professional ability plays a pivotal role in the

development strategy of the Company. The Company is committed to carrying out various safety promotion and training activities cov-

ering a wide range of forms such as theoretical lectures simulated hands-on exercises case analysis and discussions. These activities

05 06 not only help crew members master the correct safety skills through practical operations but also enable shore-based personnel to gain Work safely without shirking responsibility

Mindfulness without complacency and equip- a deeper understanding of the connotation of safety culture from different perspectives. Through continuous learning and practice all

avoiding accountability neglecting duties or

ment without “injury”. employees’ understanding of safety culture has been further deepened and their safety operation capabilities have been significantly

relying on luck. strengthened thus building a solid and reliable line of defense for the safe operations of the Company.In the future the Company will continue to innovate in safety promotion and training methods continuously improve the safety literacy

of all employees and ensure that safety culture is truly integrated into the daily work and life of each employee.

0708Achieve the “Four Don’ts" principle: Do not harm Adhere to the four frontlines: Implement com- Practice Highlight 1: Active Promotion of Good Safety Practicesyourself do not harm others do not be harmed by mands on the frontline identify hazards on the

others and do not allow others to be harmed. frontline solve problems on the frontline and To fully leverage the subjective initiative and work enthusiasm of crew members improve their safety management skills and effective-

create culture on the frontline. ly prevent safety accidents the Company has formulated the Measures for Collection and Implementation of Good Practices actively

advocated and promoted the evaluation and reward mechanism for “Good Practices”. The Company collects the “Good Practices”

proposed by crew members and shore personnel while also setting up a scoring mechanism to reward outstanding “Good Practices”.These practices are then promoted within the fleet included in ship inspection items and incorporated into the ship safety performance

09 10 Treat the ship like home and when the ship is evaluation collectively promoting the improvement of the Company’s safety management.

Everyone Speaks of Safety Everyone Knows

safe the cargo is safe crew members are safe

Emergency Response.and the home is safe. 2024

During the Reporting Period Key Performance

During the Reporting Period the Company collected a total of 120 good practices and the shore-based

review team evaluated/reviewed a total of 40 practices and sent them to the fleet for sharing.

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Practice Highlight 2: Promotion through Shell Marine Partner in Safety Program Practice Highlight 3: "Safety Production Month" Themed Activities

In June 2024 to further implement the important instructions on safety production by General Secretary Xi Jinping the Company orga-

On August 7 2024 the Company with the approval of Shell officially joined the “Shell Marine Partner in Safety Program” and became a nized a series of “Safety Production Month” activities with the theme “Everyone Speaks of Safety Everyone Knows Emergency Responsemember of this partnership. This marks a solid step forward for the Company in professional exchanges within the industry and in pro- to Smoothen Life Passage”.moting and enhancing the level of shipping safety management.The Company actively responded to Shell's three key action initiatives deepened its safety commitment strictly followed the require-

ments to carry out various activities and regularly verified the effectiveness of these activities. This effort strengthens the Company's

safety culture foundation improves overall safety awareness and operational compliance and collectively creates a safer and more effi- Full Mobilization

cient working environment on ships.At the beginning of Safety Month activities the Company issued a call to solicitate videos for the 2024 Safety Production

Month actively encouraged all ships to participate in filming slogan videos for the safety production month widely promot-Shell Marine Partner in Safety Program ed the event through the WeChat Official Account of Xingtong Shipping and held the launching ceremony of the “SafetyProduction Month” on both shores and ships. Senior leaders and employees of the Company participated together inspiring

enthusiasm for all employees to engage in the event.Launching Ceremony of the “Safety Production Month”

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United Cooperation:

Building Sustainable

Development Together

Adhering to the vision to become a world-class domestically leading integrated service provider

for chemical supply chain Xingtong Shipping continuously extends the field of chemical supply

chain services provides high-quality safe and diversified all-round supply chain services and

joins hands with various partners to build a mutually beneficial and win-win industrial ecology.

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Opportuni- Description Financial Impact Impact on Enhancement of Development Resilience ty Type Impact Duration Value Chain Countermeasures

The Company steadily advances the "1+2+1" strategic development plan continuously improves development resilience grasps oppor-

tunities benchmarks the international first-class level and adheres to the operating principles of putting safety and customer first. We Against the backdrop of the stable ? Gain an in-depth understanding of cus-

strive forward steadfast in scientific and refined management and the application of information intelligence and resolutely strengthen Market Op- growth of the chemical trade market Operations

tomers’ needs and market trends contin-

the Company may have more busi- Revenue Long-term uously expand both domestic and inter-portunities increase national shipping businesses and meet

compliance construction while pursuing quality improvement cost reduction and efficiency enhancement in parallel. Committed to ness growth opportunities and fur- Downstream

ther expand its market share. customers’ diverse needs through efficient

value creation and result sharing we will enhance ship operational efficiency by optimizing route layouts implementing refined manage- and high-quality transportation services.ment and applying intelligent information technology to continuously improve our market competitiveness operational efficiency and

overall profitability and to take leadership in sustainable high-quality development.Governance

The Company implements the service philosophy of “Leading In Service with Every Employee Caring for Customers”. We are dedicated

to establishing long-term stable relationships with customers. Through the formulation of relevant systems such as the Transportation Impact Risk and Opportunity Management

Service Business Management System the International Transportation Business Management System the Ship-Shore Operations Sys-

tem and the Customer Satisfaction Survey and Complaint Management Procedures we standardize the Company's business operations To improve customer service levels and enhance customer satisfaction the Company has formulated systems such as the Transportation

improve communication and cooperation efficiency among departments and enable the Company to continuously provide high-quality Service Business Management System to implement standardized service work and control risks during the customer service process. In

and first-class services to customers. addition to strengthen the assessment of customers' performance capabilities and risk management the Company conducts customer

risk assessments based on the Customer Evaluation Management System around dimensions such as the nature of the enterprise reg-

The Company defines the relevant responsibilities of the departments involved in business services. The Marketing Department is re- istered capital and business demand to better understand customer needs optimize service strategies enhance customer risk assess-

sponsible for front-end service such as customer contract handling customer relationship maintenance and customer demand re- ments and take proactive and effective measures to prevent and reduce risks.search. The Operations Department is responsible for tasks such as ship voyage execution to ensure ships complete the transportation

tasks in quality and quantity according to voyage order instructions. Other relevant departments provide necessary support.Indicators and Goals 2024

Strategy Key PerformanceTo provide customers with better more efficient and attentive During the Reporting Period

shipping services the Company pays close attention to cus-

tomer feedback promptly collects organizes and analyzes in- Customer Satisfaction

formation such as customer complaints and satisfaction data

Risk Type Risk Description Financial Impact Impact on Impact Duration Value Chain Countermeasures and makes continuous improvement and optimization. 96.93%

Standardize the Company's transporta-

tion services freight forwarding busi-

If issues arise in the process of ship de- ness and other business management

ployment ship transportation cargo load- processes continuously improve com-

Operational ing and unloading operations it may lead Operations

Risk to transportation delays cargo damage Cost increase Short-term

munication and collaboration efficiency

between departments and standardize

customer complaints disputes and in- Downstream the execution of customer demand re-

crease in operational costs. search voyage planning ship oper-

ation management etc. to provide

high-standard services to customers. Optimization of Customer Service

Deepened Communication with Customers

If the Company faces legal disputes or Adhere to customer-oriented philosophy

other negative issues or if the service focus on customer service and satisfac- The Company formulates the Transportation Service Business Management System and other relevant systems to establish standardized

Reputation quality and efficiency cannot meet cus- Revenue Operations tion fully understand customers’ needs Long-term in transportation types quantities and and efficient business service management processes engage in full communication with customers and build good relationships. The Risks tomer demands it may lead to a de- decrease

crease in customer satisfaction and im- Downstream periods reasonably allocate ships and Company carries out customer demand analysis to understand the needs of customers in terms of transportation varieties quantities

pact the Company's reputation. continuously strengthen customer rela-tionship maintenance. loading and unloading ports and time and reasonably allocates the corresponding ships to ensure efficient and smooth transportation

services. During the transportation service process the Company also keeps comprehensive track of every voyage's loading operations

transportation unloading operations and document collection maintaining timely communication and relationship maintenance with

customers further enhancing customer trust and satisfaction.

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Customer Satisfaction Management Handling of Customer Complaints

The Company attaches great importance to customer feedback continuously strengthens communication with customers establishes a

scientifically reasonable customer satisfaction indicator system conducts annual customer satisfaction surveys performs annual statisti- The Company continues to pay attention to customer needs defines the specific duties of each responsible department in the Custom-

cal analysis and based on the analysis summary strengthens and improves weak areas continuously enhancing its professional capabili- er Complaint Management System and forms a systematic and standardized process for receiving and handling customer complaints

ties and qualities to provide higher-quality services to customers. so as to quickly respond to and dispose of customer feedback issues ensure customer satisfaction and effectively safeguard the rights

and interests of customers.Customer satisfaction surveys Customer Complaint Handling Process

Customer

Complaints

Accurately grasp key indicators of customer needs;

Indicator Create controllable indicators that generate new expectations in customers prompting the Phone Written Com- In-person

Principles plaints Complaints

Others

Company to take improvement measures;

Focus on quantitative indicators that can be counted calculated and analyzed.Marketing

Department Complaint Handling

Patient listening

content recording

Responsible

Survey content Cover aspects such as ship transportation service capability and comprehensive evaluation. Department

Investigation Process

Use email phone inquiries fax questionnaires visit records forums and other forms;

Survey Cause Analysis

Methods Require each department to hold a discussion meeting every month to analyze and improve

shortcomings in management.Accountability of

Processing Plan

Responsible Person

Summarize and statistically analyze the customer satisfaction survey results recorded in the Instruction of the

Customer Satisfaction Summary Table and the Customer Satisfaction Statistical Analysis; Responsible Leader

Organize relevant departments to investigate and handle customer dissatisfaction projects Dissatisfied

Analysis and and feedback the results to customers in a timely manner;

Processing Complaint FeedbackConvene the relevant departments of the Company to organize special meetings inform Summary and

the situation of customer satisfaction survey in a timely manner analyze the reasons and Archiving Satisfied

urge the relevant departments to formulate corrective and improvement measures and fol-

low up the implementation of the situation.

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Intelligent Shipping Ecosystem

Digitalization is a key enabler for the shipping industry to improve its resource allocation capabil-

ities and achieve new momentum in business development. Responding to the national call for Case Study: Intelligent Ship Systems

green low-carbon and intelligent shipping development and catering to the evolving needs of

the Company we continuously promote innovative breakthroughs in new generation information Upholding the development philosophy of being “green intelligent and efficient” the Company has established an intelli-technology dive into the application of “digital shipping and smart ships and extend these tech- gent platform for ship management which covers functions such as ship equipment monitoring navigation path optimiza-nologies into the supply chain”. This covers the construction of projects such as business man- tion fuel management and remote maintenance. A data collection transmission and storage system has also been built to

agement systems infrastructure construction data security management systems and intelligent meet the full-process operational management needs of ships.ship systems to comprehensively enhance our fine management capabilities.In 2024 the Ship Operation Efficiency Analysis Dataset independently developed by the Company

was awarded a shipping data intellectual property registration certificate by the Fujian Provincial

Intellectual Property Protection Center. This achievement significantly enhanced the operational Real-Time Ship Status Monitor- Intelligent Navigation Optimiza-efficiency of the Company's shipping platform and effectively transformed data from “intellectual ing and Warning System: tion System:property” into “assets” marking a key step forward for the Company in the field of new quality

productive forces. In accordance with relevant accounting regulations data assets were first in-

The real-time status monitoring and multi-lev- Intelligent navigation optimization modules

cluded in the balance sheet of the Company.el warning functions have been realized for have been launched integrating external data

key equipment on ships such as the engine such as weather forecasts ocean current

2024

Key Performance the fuel system and the navigation system. speeds and channel data to provide crew During the Reporting Period Through real-time data transmission key members with the best route suggestions.Total Number of equipment status information can be shared This helps ships reach their destinations safe-Total Number of Au- Total Number of

Investment in R&D thorized Patents Software Copyrights Trademarks between the ship and shore. Once any ab- ly in the shortest time possible. The platform

normality is detected in the equipment the can predict potential weather risks along the

1496.7 27 18 18 system automatically triggers a warning and voyage and promptly alert ships to adjust their RMB thousand sends it to the shore-based support team. routes.

List of R&D Projects in 2024

Remote Maintenance and Sup- Monitoring and Management of

port Module: Ships’ Energy Consumption:

S/N Category Project Name

A remote maintenance system has been es- An energy consumption monitoring module

tablished allowing the shore-based support has been developed to monitor the fuel con-

1 Anchor Warning System team to remotely monitor and diagnose ship sumption and energy efficiency of ships in

equipment provide real-time technical sup- real time support data collection and analysis

port reduce ship downtime due to equipment and provide management with a basis for op-

2 Ship Operations Sailing Schedule Assistant System failures and improve the continuity and stabil- timizing energy consumption strategies.

ity of ship operations.

3 Ship Certificate Warning System

4 Business Management Pallet Quotation System

5 Crew Management Crew Contract Cloud Signing System

6 Information Security Intelligent Data Backup and Recovery System

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Joint Promotion of Industry Development Industry Exchanges

Case Study: Participation in 2024 (18th) Petrochemicals Stor-

With an open and enterprising attitude Xingtong Shipping actively engages in strategic partnerships with external companies partici- age & Logistics Conference

pates in industry seminars and forums school-enterprise exchanges and other activities and deeply integrates into the industry ecosys-

tem. We integrate resources and advantages of all stakeholders discuss industry development trends and share practical experience

and achievements to promote the sustainable development of the Company and the industry.In October 2024 the Company actively par-

ticipated in the 18th Petrochemicals Storage

Joint Strategic Cooperation & Logistics Conference. At the conference

many leading companies in the chemical in-

dustry including well-known cargo owners

shipowners freight forwarders and storage

Case Study: Strategic Reach Cooperation Between Xingtong Shipping and C&D enterprises gathered together to conduct

business cooperations (e.g. matching cargo

owners with suppliers for vehicles and ships)

In November 2024 in response to the wave of supply chain upgrades in the chemical industry and to implement the nation-

deeply discuss and communicate on various

al development strategy of “Going Global” Xingtong Shipping officially signed a strategic cooperation framework agreement

topics in the storage and transportation field

with C&D (a listed company under the control of C&D Group which is one of the Fortune 500 Companies) embarking on

of the petrochemical industry and explore

a new chapter of long-term strategic cooperation. Adhering to the philosophy of strong alliances and shared advantages

the development of the industry.both parties strengthen open cooperation to lead the international chemical shipping industry towards intelligent green and

efficient development. Through supply chain optimization and value creation they further enhance their ability to serve large

global chemical customers.Additionally the Company signed a joint venture contract with Xiamen Jianfa Supply Chain Logistics Technology Co. Ltd.to establish a joint venture aimed at jointly purchasing green and high-end chemical tankers meticulously laying out global

chemical maritime business. By integrating both parties' global resources and advantages they work together to contribute

to the improvement of the global chemical industry chain.Case Study: Students and faculty of Shanghai Maritime University visited

Xingtong Shipping to outline a new blueprint for shipping through universi-

ty-enterprise collaboration

In July 2024 in response to the Survey on “Thousands of Enterprises and Hundreds of Ports” initiated by Shanghai Maritime

University a social practice exchange program for students of Shanghai Maritime University the Company received a group

of faculty and students led by several leaders who visited and exchanged with the Company. Focusing on core topics such

as industry development trends talent cultivation and the opportunities and challenges in the industry both parties en-

gaged in in-depth and productive discussions. To further deepen university-enterprise cooperation the general manager of

the Company was invited to serve as an external mentor for the ideological and political education for the College of Trans-

port & Communications of the Shanghai Maritime University. This lays a solid foundation for future in-depth cooperation of

both parties and the development of the shipping industry.

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Sustainable Supply Chains

Management of Supply Chain Supplier Sustainability Management

Attaching great importance to supply chain security the Company has established systems such as the Supplier Management System The Company places great emphasis on the ESG performance of its suppliers. By incorporating ESG-related requirements into the sup-

and the Procurement Business Management System to specify overall requirements for suppliers standardize supplier selection eval- plier management process strengthening green procurement and promoting transparent procurement methods the Company collabo-

uation and management processes as well as procurement processes for key materials such as fuel oil ship materials and ship repair rates with supplier partners to drive the sustainable development of the supply chain.materials and build a safe and stable supplier team.The Vice President in charge is responsible for approving procurement contracts and supply agreements of the Company while the

Purchasing Department handles daily procurement management supplier investigation selection and evaluation and procurement con-

tract management. The ship owner is responsible for material application acceptance quality feedback and warehouse management. For international ship management services and maritime labor services the Company re-

Together they ensure the effectiveness of supplier management. quires suppliers to provide certification documents for labor rights special work permits and

Supplier ESG other relevant qualifications to ensure compliance with applicable laws and regulations con-

Management cerning labor rights occupational health and safety and welfare protection. In addition the

Company conducts ESG-related advocacy and support for suppliers including efforts to min-

Full-process Management of Suppliers imize product packaging promote package reuse and recycle packaging after delivery to

ships.The Company has established a standardized control process for managing supplier development evaluation and assessment and

achieved full-process management of suppliers.The Company prioritizes the procurement of environmentally friendly products with energy

Green Pur- efficiency long service life and low waste generation and uses products with ecological pro-

chasing tection certification (G-ECO) whenever possible. For the procurement of a complete set of

new equipment a No Asbestos Declaration must be accompanied.Selection The Company selects high-quality suppliers that meet its needs based on factors such as qualifications industry rec-

of Suppli-

ers ognition and industry management experience controlling supply chain ESG risks from the source. The Company continuously strengthens the integrity management of its supply chain. Suppli-

Transparent ers are required to sign an Integrity Cooperation Agreement or include integrity cooperation

procurement clauses in relevant contracts clearly defining the ethical standards for both parties and jointly

maintaining a healthy and fair business environment.Admis- Detailed evaluation criteria are set according to the markets industries products and services involved including

sion of supplier qualification status service capabilities product price levels etc. Suppliers are required to provide certification

Suppliers documents for quality safety environmental protection labor rights special work permits etc. New suppliers undergo

a comprehensive evaluation to ensure material quality and protection of labor rights.

2024

Supplier During the Reporting Period

Key Performance

Based on the comprehensive assessment results major material suppliers are classified into three categories (A (Core)

Classifi-

cation Category B (General) and Category C (Emergency)) and preferential procurement cooperation is carried out.

100%100%

Supplier Review Coverage Rate On-Site Inspection Coverage Rate

The Company conducts an annual assessment of its suppliers and assesses their performance in product/service qual- for Core Suppliers

Supplier ity health safety environmental management systems certification and implementation. Based on the assessment

Assess- results the supplier grade is adjusted. If a supplier encounters issues such as credit quality or service problems their

ment grade is adjusted according to the severity of the issue. The supplier may be blacklisted procurement from them may

be reduced or stopped and the qualified supplier list will be updated in a timely manner.

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Protection of Information Security Improvement of Security Assurance

The Company strictly implements information security control continuously optimizing and improving security measures to ensure ef-

fective control of information security risks.Information Security Management

In accordance with the principles of “risk orientation full participation continuous improvement compliance and responsibility” and

in line with laws and regulations such as the Data Security Law of the People's Republic of China the Network Security Law of the

People's Republic of China the Personal Information Protection Law of the People's Republic of China the Company has developed sys- Regular Risk Conduct risk assessments to analyze potential security threats and vulnerabilities and for-

tems such as the Computer Information Security Management System the Computer Asset Management System and the Data Center Assessment mulate corresponding control measures.Security Management System and established a stable information security management system to effectively ensure the safety of the

Company's information and data.The Digitalization Department serving as the core of the Company's information management structure leads information management

and informatization work. The Information Security Task Force implements information security and privacy protection strategies. Senior Access Control and

Permission Manage- Based on the principle of least privilege strictly control access permissions to systems and management is responsible for decision-making and supervision while the Legal and Compliance Department provides compliance sup- data regularly review permission configurations and make necessary adjustments.port. Each business department ensures the implementation of relevant policies at the low level. ment

In accordance with national and industry data security regulations the Company's self-developed projects strictly implement information

data security management ensuring data security throughout the entire project lifecycle.Security Audits and Check the execution of various security measures ensure compliance with the Company’s

Log Management information security policies configure and manage access and operation logs for key sys-

information data security management tems and retain them for a certain period for audit and investigation purposes.Vulnerability Man-

Conduct data collection and storage according to the "minimum necessary" principle re- agement and Patch Monitor security vulnerabilities in the system and regularly check and promptly fix known

Data Minimization and duce the scope of sensitive data usage and strengthen the protection of highly sensitive Management

vulnerabilities especially those involving core systems.Refined Management data.Emergency Re- Develop a detailed emergency response plan ensure rapid response and control of impact

Strictly follow security standards and processes from data collection storage transmis- sponse and Incident during security incidents and regularly conduct incident simulation drills to ensure that all

Whole-Life-Cycle sion use to destruction and ensure the security of data throughout its lifecycle. Management departments are familiar with emergency processes.Management

Establish multi-layered security protection system at the network application and data Data Backup and Re- Establish a data backup and recovery mechanism regularly back up critical data and pe-

Multi-layered Security layers and ensure data security through access control encryption monitoring and other covery Mechanism

riodically test the data recovery process to ensure quick restoration in the event of data

Protection measures.loss.Regularly review and update data security measures promptly address emerging security

Continuous Improvement risks and take corrective actions quickly when problems are identified.and Risk Management Information Security Cooperation

The Company closely follows the development trends of cutting-edge technologies such as ship intelligence informatization and smart

Key Performance During the Reporting Period AI and simultaneously implements information data security management during the active promotion of digital construction. The Com-

pany collaborates with qualified external organizations such as the Cangqiong- Constellation Cloud Platform and other external cooper-

ation projects and adopts a series of multi-layered security measures covering data encryption access control network protection and

0 risk identification and management to ensure the privacy integrity and availability of user data in the cloud environment. data security violations or customer customer information leaks occurred in the Company.

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Shared Responsibility:

Seeking Collaborative

Growth and Mutual

Prosperity

Xingtong Shipping has always regarded employees as the core driving force of enterprise

development and continuously absorbs cultivates and introduces outstanding talents. Through

improving welfare benefits and incentive mechanisms we build a stable and efficient talent

team and solidify the foundation for talent development. The Company actively fulfills its social

responsibilities and engages in community development rural revitalization and social welfare

activities to achieve mutual prosperity of corporate development and social value.

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Protection of Employees’ Rights and Interests

Presentation in Quanzhou Ocean Institute

Compliant Employment

Strictly adhering to the Labor Law of the People's Republic of China the Labor Contract Law of the People's Republic of China and the

Law of the People's Republic of China on Employment Promotion the Company has formulated several management systems including

the Employee Handbook the Recruitment and Allocation Management System and the Shore-based Employee Resignation Manage-

ment System to standardize employee recruitment onboarding and resignation processes and ensure fair just and orderly recruitment.To eliminate child labor and forced labor the Company strengthens pre-employment identity verification checks the age of candidates

to ensure compliance with legal regulations and strictly enforces daily work and rest mechanisms according to attendance-related sys-

tems.Based its talent development strategy the Company formulates crew recruitment needs according to crew team building plans and in-

troduces talents through diversified recruitment channels such as on-campus recruitment events cooperation with domestic recruitment

platforms internal recommendations and peer exchanges. In addition the Company establishes partnerships with colleges and univer-

sities such as Dalian Maritime University and Quanzhou Ocean Institute injecting new vitality into the development of our talent pool.

2024

Key Performance

During the Reporting Period

The Company has a total of with the labor contract signing rate of

731employees 100%.

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2024

Diversity Equality and Inclusion Key PerformanceOwn crew members

Total Number of Crew Members Number of New Employees

The Company values the equality and diversity needs of employees. In accordance with the Measures for the Administration of Em-

ployee Employment and the principle of equal employment we conduct recruitment work to ensure that there is no discrimination or 595 189

increased employment barriers based on ethnicity race gender religious belief household registration or other differences. We respect

the legal rights and interests of each employee.

2024

Key Performance Number of Employees Resigned Employee Turnover RateShore-based employee

8614.45%

Number of Shore-Based

Employee Number of New Employees

13621

Crew Structure

Number of Self-owned Crew Members Number of Self-owned Crew Members

(by Employee Level) (by Age)

Employee Turnover Employee Turnover Rate Captain Senior Crew Regular Crew Under 25 years 26-35 years old 36-45 years old 46-55 years old 56 years old Members Members old or above

75.15%

3216

133

159

Shore-based Employee Structure

32324034253

Number of Shore-based Employees Number of Shore-based Employees Number of Shore-based Employees

(by Age) (by Job Level) (by Gender)

Under 30 years old 31-45 years old Senior Management Middle Management The Company actively creates an inclusive and diverse corpo-

Female Male

rate culture and encourages mutual respect understanding

46-55 years old 56 years old or Low-level Manage-

above ment Grassroots Employees and cooperation among employees. Through various chan-

nels such as the internal publication Xingtong·Seaway bul-

letin boards and official website the Company promotes its

7 6 values and cultural concepts ensuring that employees from

2959

37 different backgrounds and personalities feel the Company’s

care and respect thereby enhancing their sense of belong-

30 ing and recognition. Additionally the Company fully considers

the needs of female employees. While ensuring legal rights

and benefits for female employees such as marriage leave

maternity leave prenatal check-up leave and breastfeed-

70 ing leave the Company has added special leave—menstrual

6377

30 leave—to provide convenience for female employees. Activities on Women's Day

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Optimization of Remuneration and Benefits Management of Performance Assessment

For regular assessment and objective evaluation of employee performance the

Remuneration Management Company has established the Shore-based Performance Management System to Key Performance 2024

standardize mechanisms such as performance assessment performance interviews

and appeals and improve its talent incentive and constraint mechanisms. With anThe Company adheres to the principles that remuneration should be “compliant competitive position-based performance-oriented overall performance system oriented to the business strategy the Company adopts the percentage of employees regularlyand adjustable”. Based on the Labor Law of the People's Republic of China and other relevant policies combined with the Company's tools such as the balanced scorecard and KPI (Key Performance Indicators). With a

realities the Company has established systems such as the Shore-based Employee Remuneration Management System and the Crew undergoing performance and career focus on departmental performance evaluations the Company has constructed an

Remuneration Management System to regulate shore-based and crew remuneration management. Committed to building a scientific development evaluations wasintegrated KPI performance evaluation system. The two main tools of performance

reasonable fair and competitive remuneration management system the Company fully utilizes the adjustment and incentive functions management are introduced to link departmental performance bonuses with busi-

of remuneration to effectively attract retain and motivate talents and ensures the continuous enhancement of its core competitiveness ness results. A mechanism that connects employee earnings with company perfor- 95.59%

and the achievement of corporate goals. mance is established to promote mutual growth between employees and the Com-

With a hybrid remuneration strategy and based on remuneration levels and remuneration structure the Company adopts different strat- pany.。

egies for the remuneration of employees in different job levels and positions. The crew remuneration is determined with a market-based

approach and based on the contribution of individual crew members deciding the income level of the crew. The Company has estab-

lished a collective evaluation mechanism led by the Crew Department with participation from multiple departments to adjust crew re- Improvement of the Benefit System

muneration in line with fluctuations in labor market prices every six months thereby improving the crew compensation structure system.The Company adheres to a people-centered philosophy and advocates an atmosphere of “healthy life happy work”. We have estab-

Compensation lished the Shore-based Employee Welfare Management System and the Crew Welfare System to provide all employees with a compre-

hensive welfare system that includes three major parts: statutory benefits corporate benefits and union benefits.In terms of working hours and leaves the Company formulates the Shore-Based Employee Attendance Management System to stan-

dardize attendance management and protect employees' rights to work rest and take leaves and implements a user-friendly clock-in

system and provisions on leaves for travel. A no-clock-in attendance system is in place for the employees in the International Business

Center who need to deal with jet lag. In addition the Company also takes into full account the living needs of employees. Employees

Fixed Salary Variable Salary with children in kindergarten or elementary school can apply for leave to assist with their children's school commute and arrive 30 min-

utes later than the morning work schedule of the Company.Regarding the working hours of the crew the Company complies with regulations on preventing crew fatigue establishes daily mecha-

nisms such as work and rest time logs and ensures that the crew receives adequate rest.Statutory benefits include social insurance housing provident fund paid annual leave

Compliant Statutory marriage leave bereavement leave maternity check-up leave maternity leave paternity

Benefits leave breastfeeding time and medical leave in accordance with national policies and the

Company’s relevant regulations.Remuneration Structure

Diverse Corporate Corporate benefits supplement statutory benefits and include accidental injury insurance

Benefits employee health check-ups travel leave seniority subsidies phone bill subsidies and spe-

cial benefits.The Company insists on optimizing the talent incentive mechanism and establishing a

the Company's employee stock

diversified multi-level incentive system. This fully stimulates employee enthusiasm and

ownership plan covered

creativity and achieves long-term mutual development between the Company and its Benefits from Trade Union as a beneficial supplement to corporate benefits include

employees. In 2024 the Company implemented an employee stock ownership plan to (including overseas employees). Humanized Benefits team-building activities annual trips birthday gifts holiday greetings Women’s Day greet-

provide incentives to the Company's directors supervisors officers and key personnel from the Trade Union ings wedding gifts hospital visits support for employees in difficulty condolence visits

further enhancing the cohesion of employees and the development vitality of the Com- education scholarships and daily welfare.pany. As of the end of 2024 the Company's employee stock ownership plan covered 55 55employees

employees (including overseas employees).

9596

Employee Stock

Ownership Plan

(ESOP)

Award Allowances

and Benefits

Special Award

Annual Bonus

Reading Perfor-

mance Bonus

Position-based

Salary

Basic SalaryCompliance Leadership: Low-Carbon Enhanced Defense United Cooperation: Shared Responsibility:

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Employee Care and Support Creation of a Good Working Environment

Enhancement of Crew Care The Company actively creates a good working environment and establishes offices in locations such as Quanzhou Shanghai Singa-

pore and the Hainan Free Trade Zone offering employees a variety of office location options.Due to the special nature of their working environment job requirements and working hours crew members face higher risks to their Considering employees’ diverse interests and hobbies the Company has carefully created an employee room to enrich employees’

physical and mental health. We care about the health and well-being of every crew member and pay attention to every detail of their professional lives. The room is equipped with a quiet library where employees can immerse themselves in books during their free time

daily life including giving birthday cards with heartfelt wishes and gifts to crew members celebrating their birthdays every month. Con- fitness equipment to meet different exercise needs as well as various fitness equipment and a dedicated badminton court to meet the

sidering that crew members are unable to take timely care of their families due to their working hours the Company organizes crew diverse fitness needs of employees.family care activities to enhance emotional communication between crew members and their families truly putting care and support in

place. In addition the Company regularly organizes ship visits and care activities provides care and support and holds retirement cere-

monies for retired crew members ensuring that crew members feel a sense of pride and warmth during their time with the Company. Shanghai Office

Employees’ Children Scholarship

Award Ceremony Family Gatherings

Retirement Ceremony Ship Visits for Support Library Sports Facilities on Ship

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Scientific and Democratic Management

Employee Satisfaction Survey

Improvement of Democratic Management

In 2024 the Company conducted an employee satisfaction survey to listen to what employees feel and think. The survey was divided

The Company has established the Trade Union and the Employees’ Congress and 2024 into surveys for shore-based employees and crew members covering aspects such as remuneration and benefits training systems

set up related mechanisms for democratic management to ensure employees' right In 2024 Key Performance colleague relationships corporate culture working environment and the service attitude of the Crew Department. Based on the survey

to know participate express and supervise. This promotes the institutionalization results and employee feedback the Company conducts self-examination and correction on existing management issues promotes the

standardization and scientific management of democratic governance in the Com- improvement of the management team’s capabilities and continuously improves employee satisfaction and sense of belonging.pany and fosters democratic decision-making employee unity and harmony.In accordance with the requirements for standardized management the Company 100%

establishes and improves the disclosure system defines the contents and forms to

be disclosed and makes regular and targeted disclosures. We disclose hot topics of the Company's employ- 2024

key concerns and management challenges reflected by employees to accept the Key PerformanceDuring the Reporting Period

supervision by employees. ees are the members of the

The Company insists on strengthening democratic management and giving full play Trade Union.to the role of the Trade Union. Every year we organize several legal and regulatory the onshore employee satisfaction rate is and the satisfaction rate of crew members is

training sessions to enhance employees' self-protection awareness implement the

equal negotiation system for collective contracts to safeguard employees' legal rights 95.90% 96.00%

and interests and strengthen the cooperation between workers and operators. We

also establish a mechanism for the mediation of labor disputes and the supervision

and inspection of labor protection as well as a liaison system of union member rep-

resentatives to promote employees’ participation in democratic management.Enhancement of Employee Communication

The Company has formulated regulations such as Regulations on the Management of Shipboard Catering Service Living Quarters Hy-

giene and Onboard Complaints and established diverse communication channels for collecting employees’ opinions and suggestions in

a comprehensive and effective manner to ensure that the voices of the crew are heard and valued. The Company provides employees

with opportunities to express their ideas through confirmations promotions and semi-annual and annual performance reviews. We

also organize employee interviews and face-to-face discussions to better understand employees’ needs and expectations. In addition

the Company organizes informal communication through corporate cultural activities such as team-building events sports games and

regular outings to gather employees' feedback. Through a wide range of channels the Company forms response plans based on a full

understanding of employees' suggestions dynamically provides feedback on relevant progress continuously improves employee satis-

faction and fosters a positive productive and democratic atmosphere.New Employee Symposium

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Building of High-Quality Teams

Construction of the Training System

Focusing on talent development and knowledge inheritance the Company carefully plans the annual training program and actively

Enhancement of Employee Training encourages managerial-level employees and some key personnel to create training materials based on their expertise or share or

trial-teach them within the department or to all employees. To meet employees' diverse learning needs the Company continuously

innovates training methods by using online learning and micro-classes enriching learning paths and improving the effectiveness and

Full-Process Management of Employee Training efficiency of training.The Company provides more comprehensive and systematic employee training. Particularly the Company specifically formulated the To effectively improve the professional quality of shipping industry personnel the Company uses the safety management system as the

SQMS Personnel Training Procedure and implemented the annual training plan for onshore personnel to provide various professional core framework deeply aligning with the industry's risk prevention needs and creating a “dynamically updated precisely empowering”

development training required for the duty fulfillment and career development of employees. Additionally specialized training sessions training mechanism. The Company establishes a “triple integration” implementation path: first integrate the latest policies and regula-

on safety management risk workplace etiquette and career development are offered to employees in different positions assisting tions of national and local governments IMO convention rules and industry technical standards to ensure that personnel stay up-to-

them in enhancing their professional skills and expertise. date with cutting-edge standards; second adopt a diversified training model including theoretical lectures hands-on drills case study

and online learning to meet differentiated learning needs; third develop classified and tiered training plans tailored to different groupsGuided by the talent strategy goal of “building a first-class shipping team with professional spirit and specialized capabilities that help with job characteristics such as crew members shore-based management personnel and staff of functional departments to preciselycontinual strategic improvement” the Company has planned the following steps for short-term (1-2 years) medium-term (3-5 years) match capability requirements of different jobs. This system through standardized course development regulated assessment and eval-

and long-term (over 5 years) strategies: improving the training system establishing a talent pool and creating a learning-oriented orga- uation and continuous effect tracking comprehensively enhances the overall quality and professional skills of industry personnel provid-

nizational culture. These steps aim to gradually build a high-quality team and provide strong support for the operations of the Company. ing a solid talent guarantee for the high-quality development and safe operations of the Company.

2024 Training on Safety Leadership and Systematic Safety Management Control in

During the Reporting Period Key Performance the Digital and Intelligent Age

the Company invested RMB

984.2thousand in employee training.

The Company establishes a comprehensive training evaluation mechanism collects feedback from employees regarding the training

and continuously improves the content and methods of the training to increase training satisfaction and quality. For internal training

the Company assesses trainees’ grasp of the training topics and key knowledge through assessments conducted by internal instructors.Simultaneously employees are asked to provide feedback on the practicality of the training content the instructor's teaching quality

and the effectiveness of the teaching methods through a satisfaction survey in the shipping knowledge database. For those who do not

meet the required standards re-exams or additional training are arranged. For external training the effectiveness is evaluated through

survey questionnaires.Training Contents

The annual training plan covers various aspects such as safety business knowledge man-

Shore-Based Per- agement skills and laws and regulations providing employees with comprehensive oppor-

sonnel tunities to enhance their knowledge and skills and improving ship-shore collaboration capa-

bilities.Building a safety training matrix that includes awareness operations and first aid enhanc-

Crew Members ing professional operational capabilities to ensure smooth ship operations.

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Support for Employee Development Dedication to Social Contribution

Devotion to Social Welfare

Smooth Development Pathways

The Company has developed the Measures for Administration of Shore-Based Employee Job Grades and Development Paths to The Company has always adhered to the principle of balancing corporate

strengthen the scientific and systematic management of the Company's job level system standardize the promotion and demotion development and social responsibility. While strengthening the core busi-

mechanisms broaden employees’ career development space and job promotion paths and regulate improve and optimize the human ness “hard power” we proactively give back to society convert corporate

resources incentive and restraint mechanisms. Additionally the Company has developed the Shore-Based Employee Transfer Manage- development results into public welfare and charity actions and continuous-

ment System to standardize its personnel transfer management process create a fair just and open competitive mechanism and ratio- ly contribute to charitable causes such as educational support and targeted

nally allocate the Company's human resources. poverty alleviation.An investment in knowledge pays the best interest. Since its establish-

ment the Company has set up teaching and scholarship awards in multi-

ple schools in Quanzhou and invested in improving the school environment

benefiting over a hundred impoverished students. The Company contin-Promotion Paths ues to practice its corporate responsibility of “undertaking the mission of astrong nation and supporting the development of education”.In 2024 the Company donated RMB 2 million to the Quangang District Ed- Honor for Charity

ucation Development Foundation to improve school conditions and support

The Company provides employees with a career growth path from low-level positions to educational charity initiatives such as granting scholarships and teachingawards. The Company received the honorary title of “Quanzhou CharitableVertical Develop- middle and senior management positions based on work performance ability improvement

and professional quality. This path is like a “ladder of growth” within the Company with Enterprise” which recognizes its long-standing practice of fulfilling social re-ment Path

each step representing higher responsibilities greater growth and increased rewards. sponsibility.The Company actively fulfills social responsibility by organizing environmental public welfare activities such as coastal garbage cleaning

and tree planting improving employees' environmental awareness and contributing to the construction of a green ecological environ-

ment.Horizontal Case Study: Environmental Protection Activity Themed “Love OneDevelopment Employees if meeting the basic qualification requirements for horizontal transfer positions Home Protect One Sea”

Path can transfer laterally across different sequences between channels based on work needs.In March 2024 the Company organized the “Xingtong’s Listing Day” event themed “caring for the ocean protecting theblue and ensuring harmony between humanity and nature”. Employees from various departments all wearing volunteer

uniforms formed a cycling team and cycled from the Company to the Hailang Bay section of Wulihai Beach. They orga-

nized group activities and beach cleanups and promoted and strengthened environmental awareness thus actively convey-

ing corporate values to society through practical actions.Support for Employee Growth

The Company places great importance on the continuous learning and development of employees and provides them with a series

of academic support. For employees willing to enhance their professional skills the Company actively supports their participation in

work-related training courses and learning activities. For certificates such as safety production and management ability certificates com-

pany auditors (ISM) company security officers (CSO) and maritime engineering certificates the Company supports employees by paying

training costs organizing professional training institutions to conduct training and exams and providing comprehensive growth support

for employees.

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Case Study: Organization of Tree Planting Activities Support for Rural Revitalization

On the Tree-planting Day of 2024 the Company in collaboration with government departments schools and other forces The Company actively responds to social needs and continues to uphold its corporate mission of “maximizing returns to society”. Wejointly held a tree-planting activity for public welfare continuously supporting ecological development and safeguarding “lu- actively participate in various social welfare activities making greater contributions to rural revitalization and social development.cid waters and lush mountains”.Case Study: Spring Outing to Support Agriculture

On March 28 2024 the company organized a unique corporate activity themed 'Spring Agricultural Support Initiative'. Em-

ployees visited the Rongquan and Starfruit demonstration bases in Tuling Town to engage with rural development efforts

and assist with seasonal harvesting tasks. The activity combined experiential learning about spring farming practices with

practical support for addressing urgent starfruit harvesting needs at the base.

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Information Disclosure

Afterword to this Report Regular Reports for Public Disclosure Copies 4 4

Provisional Reports for Public Disclosure Copies 85 125

Penalties for Violations in Information Disclosure Times 0 0

ESG Key Performance Indicators

Compliance Management

Anti-corruption and Anti-Bribery Whistleblows Times 0 0

Economic Performance1

Environmental Performance2

Key Indicators Unit 2024 2023 2022

Key Indicators Unit 2024 2023

Operating Income RMB million 1514.74 1237.27 784.77

Environmental Management

Net Profit Attributable to Shareholders of the Listed

Company RMB million 350.42 252.20 206.25 Total Environmental Investment RMB thousand 2543.1 1122.9

Cash Dividend per Share Yuan/Share 0.20 0.15 0.15 Violations of Laws and Regulations Concerning Environmental

Protection Case 0 /

Total Cash Dividend (Including Tax) RMB million 73.26 89.74 30 Energy Management3

Proportion to Net Profit Attributable to Shareholders of

the Listed Company % 20.91 35.58 14.55

Total Fuel Consumption(Self-Owned Ships for Voyage Charter) 10000 ton 4.14 3.44

Fuel Oil 10000 ton 2.89 2.52

Governance Performance Diesel 10000 tons 1.25 0.92

Key Indicators Unit 2024 2023 Fuel Consumption by Ships (Self-Owned Ships for Voyage tce/RMB 1 Million (Operating

Charter) Revenue) 38.51 42.94

Governance through the General Meeting of Shareholders Board of Directors and Board of Supervisors

Gasoline (Official Vehicles) Liter 35182.73 32641.74

Total General Meeting of Shareholders Convened Times 5 5

Total Electricity Consumption (Office) kWh 242211.37 216862.00

Proposals Reviewed and Approved Item 19 50

Total Energy Consumption tce 59500.58 49467.51

Number of Members of the Board of Directors Person 11 11

Response to Climate Change4

Meetings of the Board of Directors Convened Times 10 12

Total Emission of Greenhouse Gases(Scope 1 and Scope 2)5Proposals Reviewed and Approved Item 45 93 tCO2e 130138.52 108170.42

Meetings of Board of Supervisors Convened Times 7 11 Direct (Scope 1) GHG Emissions(Self-Owned Ships for Voyage

Charter) tCO2e 129922.25 107976.95

Proposals Reviewed and Approved Item 26 70

Investor Relations Management Direct (Scope 1) GHG Emissions(Official Vehicles) tCO2e 78.14 69.79

Offline Surveys Times 29 46

Indirect (Scope 2) GHG Emissions(Purchased Electricity by

Online Communications Organized Times 82 38 Offices on Shore) tCO2e 138.13 123.68

Performance Briefings Times 4 3

Interactions with Investors on SSE E-Interactive Times 17 16

2 All indicators do not include the freight agency business of the Company.3The scope of statistics covers the business of own ships for voyage charter.

Reply Rate to Investors’ Questions % 100 100 The scope of statistics covers the business of own ships for voyage charter.

5The data of the year 2023 was adjusted retrospectively based on the 2014 Guidelines on Calculation Methods for Energy Efficiency Design Index (EEDI)

for New Ships and others regulations.

1 The cash dividend distribution for 2023 and 2024 includes the amount used for share repurchase in cash

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Volume of Non-Hazardous Waste Generated per Million Yuan of m3/RMB 1 Million (Operating

Direct (Scope 1) GHG Emissions per Million Yuan of Operating tCO2e /RMB 1 Million (Operating 0.24 0.22

Revenue Revenue) 121.06 134.87

Operating Revenue Revenue)

Volume of Hazardous Waste Generated m3 518.84 481.74

Water resource utilization6 Volume of Hazardous Waste Generated per Million Yuan of m3/RMB 1 Million (Operating

Operating Revenue Revenue) 0.35 0.43

Total Water Consumption m3 131784.32 98302.08

Biodiversity conservation

Water Consumption by Offices m3 1835.30 1685.38

Percentage of Applicable Ships Implementing Ballast Water

Water Consumption by Ships m3 129949.02 96616.70 Exchange/Treatment in the Fleet

%100/

3 Social Performance

Water Use Density (Ships) m /RMB 1 Million (Operating Revenue) 88.28 86.03

Key Indicators Unit 2024 2023

Wastewater7

Labor Relations Management

Total Wastewater Discharges from Ships(Wastewater Discharged 3

into Sea + Wastewater Collected on Shore) m 123860.87 96616.70 ——Shore-based Employee

Wastewater Discharged into Sea(Discharged water that complies

with relevant regulations can be discharged into the sea directly m3 116439.78 94596.08 Percentage of Contract Workers % 100 100

or after treatment)

Number of Shore-Based Employee Person 136 128

Wastewater Collected and Treated Onshore m3 7421.08 2020.62

Number of Shore-based Employees (by Gender)

Including：Domestic Sewage m3 35.00 /

Female Person 59 51

Sewage from Engine Room m3 231.13 162.35

Male Person 77 77

Sewage from Shampoos Room m3 7154.95 1858.27

3 Number of Shore-based Employees (by Employee Level)

Wastewater Discharge Intensity m /RMB 1 Million(Operating Rev-enue) 81.77 78.09 Senior Management Person 6 6

Exhaust Air8

Middle Management Person 37 37

Nitrogen Oxide (NOX) Ton 2899.76 2435.41 Low-level Management Person 30 36

NOx Emission per Million Yuan of Operating Revenue kg/RMB 1 Million (Operating Revenue) 19.70 21.69 Grassroots employees Person 63 49

Sulfur Oxides (SOX) Ton 306.83 247.19 Number of Shore-based Employees (by Age)

SOX Emission per Million Yuan of Operating Revenue kg/RMB 1 Million (Operating Revenue) 208.43 220.10 Under 30 years old Person 29 27

Waste9 31-45 years old Person 70 66

Volume of Garbage and Waste Treated m3 871.64 760.81 46-55 years old Person 30 25

56 years old or above Person 7 10

Including：Waste Discharged under MARPOL Annex V(Food 3

Waste) m 91.88 63.12 Number of New Employees Person 21 23

Volume Burned in Incinerator m3 8.18 / Employee Turnover Person 7 11

Volume Discharged into Receiving Facilities m3 771.59 697.69 Employee Turnover Rate % 5.15 8.59

Waste Disposal Compliance Rate % 100 100 ——Own Crew Members

Volume of Non-Hazardous Waste Generated m3 352.80 245.80 Percentage of Contract Workers % 100 100

Total Number of Crew Members Person 595 551

6The scope of statistics covers the business of all own ships (for voyage charter and time charter).

7The scope of statistics covers the business of all own ships (for voyage charter and time charter).

8The scope of statistics covers the business of own ships for voyage charter. 10The data of the year 2023 was adjusted retrospectively based on refined classification standards of job levels.

9The scope of statistics covers the business of all own ships (for voyage charter and time charter).

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Number of Self-Owned Crew Members (by Job Level) ——Self-Owned Crew Members

Captain Person 32 26 Investment in Crew Training RMB thousand 752.2 440.8

Senior Crew Members Person 240 210 Total Number of Persons Trained Number 595 /

Regular Crew Members Person 323 315 Training Coverage Rate in Crew Members % 100 100

Number of Self-Owned Crew Members (by Age)

Average Training Hours per Crew Member per Year Hour/person 101.11 89.91

Under 25 years old Person 16 15

Democratic Governance and Employee Satisfaction

26-35 years old Person 133 122

Satisfaction of Shore-Based Employees % 95.90 /

36-45 years old Person 253 230

Satisfaction of Crew Members % 96.00 /

46-55 years old Person 159 156

Proportion of Trade Labor Members in Existing Employees % 100 /

56 years old or above Person 34 28

Safety and Health

Number of New Employees Person 189 178

Investment in Safety Production RMB thousand 15784.5 11808.0

Number of Employees Resigned Person 86 121

Number of Joint Safety and Emergency Drills Between Ships

Employee Turnover Rate % 14.45 21.96 and Shores Session 6 4

Compensation and Benefits Investment in Security Education and Training Session 956 /

——Shore-based Employee Total Hours of Safety Training Hour 3732 /

Social Insurance Coverage Rate11 % 97.79 / Total Hours of Safety Training Hour 5 /

Return Rate of Employees on Maternity Leave % 100 / Coverage Rate of Security Education and Training % 100 /

Return Rate of Employees on Parental Leave % 100 / Investment in Work-Related Injury Insurance RMB thousand 400.6 371.9

Percentage of Employees Regularly Undergoing Performance Coverage Rate of Work-Related Injury Insurance % 100 /

Assessment and Career Development Evaluations % 95.59 /

Coverage Rate of Health Checkups Among Employees % 100 /

——Self-Owned Crew Members

Detection Rate of Occupational Hazard Factors % 100 /

Social Insurance Coverage Rate % 100 100

Qualification Rate in Detection of Occupational Hazard Factors % 100 /

Number of Crew Families Visited Family 59 40

Number of Safety Incidents12 Case 0 0

Development and Training

Major Safety Incidents Case 0 0

——Shore-based Employee

Number of Work-related Deaths Person 0 0

Investment in Employee Training RMB thousand 232.0 /

Rate of Work-Related Fatalities % 0 0

Total Number of Persons Trained Person 130.00 119.00

Total Number of Work-related Injuries Person 0 /

Coverage of Employee Training % 95.59 92.97

Number of working days lost due to work-related injuries Working Days 0 /

Average Training Hours per Employee per Year Hour/person 30.62 24.76 Number of PSC Ship Inspections Ship*time 27 17

Number of PSC Ship Detentions Ship*time 0 0

Number of FSC Ship Inspections Ship*time 38 45

11 Including (responsibility for major and particularly major production safety accidents responsibility for significant production safety accidents responsi-The Company rehires some retired employees who are not required to pay for social insurance. bility for general safety production accidents occurrence of minor accidents)

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Number of FSC Ship Detentions Ship*time 0 0

Number of SIRE Inspections Ship*time 64 44 Terms and Definitions

SIRE Inspection Pass Rate % 100 100

Acronyms Definition

Number of CDI Inspections Ship*time 6 7

International Maritime Organization is a specialized agency of the United Nations responsible for mari-

CDI Inspection Pass Rate % 100 100 time safety and preventing ship-generated marine pollution. Its purpose is to promote technical coop-

IMO eration among countries in the shipping industry encourage countries to adopt unified standards in

R&D and Innovation promoting maritime safety improving ship navigation efficiency and preventing and controlling ship

pollution to the oceans and to carry out related activities.Investment in R&D RMB thousand 1496.7 1539.4

International Convention for the Prevention of Pollution from Ships is an international convention es-

Total Number of Authorized Patents Item 27 26 MARPOL tablished by the International Maritime Organization that sets safety regulations regarding the preven-

tion and limitation of ship discharges of oil and other harmful substances that pollute the oceans.Total Number of Software Copyrights Item 18 18

According to IMO requirements existing ships need to meet the D-2 standard for ballast water

International Con-

Total Number of Trademarks Item 18 12 discharge at the first IOPP renewal inspection after September 8 2017; new ships delivered on or

vention for the

after September 8 2017 should meet at least the D-2 discharge standard at the time of delivery.Supply Chain Management Control and Man- MEPC71 approved the amendment to Article B-3 of the Ballast Water Convention. New ships should

agement of Ships'

be equipped with a BWMS at the time of delivery to meet the D-2 discharge standard. Existing ships

Supplier Review Coverage Rate % 100 100 Ballast Water and should be equipped with a Ballast Water Management System (BWMS) during their first IOPP certifi-

Sediments

Signing Rate of Integrity Cooperation Agreement by Core cate renewal inspection on or after September 8 2019.Suppliers % 100 100 European Union Emissions Trading System is a carbon emissions trading mechanism established by

the EU to achieve greenhouse gas reduction targets. By setting an overall carbon emissions cap car-

Data Security and Customer Privacy Protection EU ETS bon emission quotas are allocated to businesses allowing the trading of carbon emission rights be-

tween companies using market methods to encourage businesses to reduce carbon emissions.Number of Data Security Violation Incidents times 0 0

Energy Efficiency Existing Ship Index is a requirement for the energy efficiency and carbon dioxide

EEXI

Specific Amount Involved in Data Security Incidents RMB thousand 0 0 emissions per ton-mile of existing ships.Number of Incidents Involving Leakage of Customer Information Case 0 / Carbon Intensity Index measures the carbon dioxide emissions during the shipping process and re-

flects the carbon emissions generated per unit of cargo transported. This index was introduced by

Customers’ Rights and Interests CII the IMO to address climate change and reduce greenhouse gas emissions. It aims to encourage ship

operators to adopt more energy-efficient and environmentally friendly operational methods to reduce

Customer Satisfaction % 96.93 98.69 carbon emissions.Contribution to Society Port State Control refers to the supervision and control conducted by the maritime authority of the PSC

port state on foreign ships entering its ports in accordance with relevant international conventions.Total Investment in Social Welfare RMB thousand 2000 2022.8

Flag State Control refers to the supervision and inspection conducted by the maritime authority of the

FSC

Number of Volunteer Activities Person-times 130 100 flag state on ships registered under its flag.Ship Inspection Report Programme is an industry-wide ship inspection and reporting system aimed at

Number of Volunteer Activities Times 5 5 improving the safety and anti-pollution standards of oil tankers and chemical tankers. Through unified

SIRE

Investment in Rural Revitalization RMB thousand 17.4 / inspection standards and reporting formats it provides references for ship operation chartering and

other related activities.Chemical Distribution Institute is an international industry organization dedicated to developing and

CDI promoting safety environmental protection and operational standards for the transportation of chem-

icals by ships.Document of Compliance is a document issued to a shipping company or ship management company

as proof of compliance with the International Safety Management (ISM) Code. It indicates that the

DOC

Company has an effective safety management system in place to ensure safe ship operations and

prevent pollution.Safety Management Certificate is a certificate issued to a ship by the competent authority or an ac-

credited organization after the ship has established and operated a safety management system in

SMC

compliance with the ISM Code and passed an audit certifying that the ship is capable of safe opera-

tions and preventing pollution.

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Indexes Indexes

Shanghai Stock Exchange Self-Reg-

ulatory Supervision Guidelines for Guide to Corporate Global Reporting Ini-

Shanghai Stock Exchange Self-Reg-

ulatory Supervision Guidelines for Guide to Corporate Global Reporting Ini-Corresponding Section Listed Companies No. 14 - Sustain- Social Responsibility tiative “Sustainability Corresponding Section Listed Companies No. 14 - Sustain- Social Responsibility tiative “Sustainabilityability Report (for Trial Implemen- Reporting in China Reporting Standards” ability Report (for Trial Implemen- Reporting in China Reporting Standards”

tation) (CASS-CSR 6.0) (GRI Standards) tation) (CASS-CSR 6.0) (GRI Standards)

About This Report / P1 2-1/2-2/2-3 Enhancement of Development Resilience Article 47 S3.3 416-1/416-2

Construction of Digital and Intelli-

Message from General Manager / P2 2-22 gent Shipping Article 41 and 42 S2.1 /

United Cooper-

/ ation: Building Joint Promotion of Industry Devel-About Xingtong P3 2-6 Sustainable Devel- opment / / /

opment Together

Sustainable Development Gover-

nance Articles 5 9 11 to 19 51 and 53 G1.1-G1.3 2-22/2-29/3-1/3-2/3-3

Sustainable Supply Chains Articles 44-46 S3.1/S3.2 308-1/414-1

Standardization of Corporate / / 2-9/2-12 Protection of Information Security Article 48 S3.4 418-1Governance

Compliance Lead-

ership: Ensuring Protection of Investors’ Rights and Protection of Employees’ Rights and Articles 49 and 50 S4.1 405-1

Stable and Long- Interests / / 2-29 Interests

term Development

Enhancement of the Risk Defense Optimization of Remuneration and / G1.2 207-1/207-2 Benefits Articles 49 and 50 S4.1 415-1Line

Compliance and Business Ethics Articles 54-56 G2.1 205-2 Shared Respon- Employee Care and Support / / /sibility: Seeking

Collaborative

Growth and Mutu-

305-1/305-2/305- al Prosperity

Scientific and Democratic Manage- / / /

Response to Climate Change Articles 20-27 E1.1 ment3/305-4

Environmental Compliance Man- Building of High-Quality Teams Articles 49 and 50 S4.3 404-2

agement Articles 29-31 Article 33

E2.1/E2.2/E2.4 305-7/306-1/306-

Low-Carbon 2/306-3

Transformation:

Leading the Future

of Shipping Dedication to Social Contribution Articles 38-40 S1.1/S1.2 /

Improvement of Resource Efficiency Articles 34-36 E3.1/E3.2/E3.3 302-1/302-3/302-4/303-5

Ecosystem and Biodiversity Pro- ESG Key Performance Indicators / A2 /

tection Article 32 E2.3 304-2

Terms and Definitions / / /

Governance of Navigation Safety Articles 49 and 50 S4.2 403-1/403-2

Afterword to the

Report

Enhanced Defense

Line: Safeguard-

Assurance of Safety and Health Articles 49 and 50 S4.2 403-6/403-7/403-10

Indexes Article 57 A3 /

ing the Safety of

Shipping

Feedback / A6 /

Construction of Safety Culture Articles 49 and 50 S4.2 403-4/403-5

115 116Compliance Leadership: Low-Carbon Enhanced Defense United Cooperation: Shared Responsibility:

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Feedback

Thank you for reading this report. To improve Xingtong Shipping's performance in environment society and governance further en-

hance its sustainable development capabilities and levels and strengthen communication with all sectors of society we sincerely hope

that you will provide valuable feedback and suggestions on our work and report amidst your busy schedule.Your Information

Name： Tel.:

Unit ： Email:

Multiple Choice (Please check √ in the appropriate box)

1．Your overall assessment of Xingtong Shipping's 2024 Environmental Social and Governance (ESG) Report:

□ Good □ Average □ Needing Improvement □ I don't know

2. How do you think Xingtong Shipping has performed in terms of customer service

□ Good □ Average □ Needing Improvement □ I don't know

3. How do you think Xingtong Shipping has performed in terms of technological innovation

□ Good □ Average □ Needing Improvement □ I don't know

4. How do you think Xingtong Shipping has performed in terms of corporate governance

□ Good □ Average □ Needing Improvement □ I don't know

5. How do you think Xingtong Shipping has performed in terms of team building

□ Good □ Average □ Needing Improvement □ I don't know

6. How do you think Xingtong Shipping has performed in terms of social welfare

Xingtong Shipping Co. Ltd.□ Good □ Average □ Needing Improvement □ I don't know

Address：257-9/FXingtong Shipping BuildingNo. 295 Yifeng East RoadQuangangQuanzhouFujianChina

7. How do you think Xingtong Shipping has performed in terms of sustainable supply chains Post Code:362800

□ Good □ Average □ Needing Improvement □ I don't know Tel:0595-87777879

8. Do you have any comments on Xingtong Shipping’s performance in sustainable development Fax:0595-87088898

Email:securities@xtshipping.cn

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行情