Stock code:603565

2024

Environmental Social

and Governance Report

Shanghai Zhonggu Logistics Co. Ltd.Table of Contents

Preface 2 Creating a Harmonious Community 54

About the Report 2 Diversity and Equity 55

Zhonggu Logistics at a Glance 6 Talent Development 58

Course and Glories 9 Caring for Employees 61

Health and Safety 65

Annual Features 13

Rural Revitalization and Welfare 67

Strengthening ESG Governance 18

Compliance in Operation 70

ESG Governance System 19

Corporate Governance 71

Response to Sustainable Development Goals 23

Business Ethics 72

Leading in Low-carbon Shipping 25 Risk Management 74

Climate Change Management 26

Index 76

Low-carbon Sailing 32

Index to the Guidelines No. 14 of Shanghai Stock Exchange

Deeply Exploring Customer Value 40 for Self-Regulation of Listed Companies—Sustainability

Building Excellent Service 40 Report (Trial) 76

Digital Shipping Transformation 48 GRI Index 77

Strengthening Supply Chain Management 52 Performance Summary 79

Reporting Evaluation and Suggestions 82Preface 2 Preface 3

Preface Introduction to the ReportThis is the Environmental Social and Governance ("ESG") report of Shanghai Zhonggu Logistics

Co. Ltd. (hereinafter referred to as "Zhonggu

Logistics" "we" or"the Company"). The ESG

About the Report report comprehensively describes the economic environmental and social performance and

management initiatives of Zhonggu Logistics

in 2024 focuses on the common concerns of

stakeholders and discloses the key information

of the Company and its subsidiaries (collectively

referred to as "the Group").Reporting Time

From January 1 2024 to December 31 2024

(referred to as the"reporting period"); some

information and cases might beyond the reporting

period.Reporting Scope and Boundaries

The Report covers Shanghai Zhonggu Logistics

Co. Ltd. and all of its subsidiaries with the

same reporting scope as the 2024 Annual Report

(hereinafter referred to as the "Annual Report").Notes on Data

The financial data herein comes from the

consolidated report for 2024 which have been

independently audited by Pan-China Certified

Public Accountants LLP(specialized general

partnership); the remaining of the information and

data are mainly sourced from the Company and the

Group' s internal statistical reports or documents.The monetary amounts indicated herein are

denominated in RMB.Reference Standards

This report has been prepared with reference

to the "Guidelines No. 14 of Shanghai Stock

Exchange for Self-Regulation of Listed Companies—

Sustainability Report (Trial)" issued by the Shanghai

Stock Exchange (referred to as the "SSE") and with

appropriate reference to the GRI Standards by the

Global Reporting Initiative (GRI).Confirmation and Approval

The Report was approved by the board of directors

on March 28 2025 following the confirmation by the

management.Preface 4 Preface 5

environment. At the same time we place employee training and development at the

Message from forefront. In 2024 we actively conducted both internal and external training programs including onboarding sessions for new employees a comprehensive training system for

the Chairman existing staff and executive lectures tailored to specific needs. These initiatives continuously support employee growth providing robust talent support for the Company's sustainable

development.Zhonggu Logistics is actively advancing “sea-rail” intermodal transportation achieving

Zhou Bin a groundbreaking “Through Bill of Lading (B/L) System”in the fullest sense. By

——Chairman of Zhonggu Logistics redefining standardized processes and establishing a digital collaborative platform we

have significantly enhanced the efficiency of logistics chain coordination. We continue to

push forward with the construction of hub logistics parks and the gradual completion and

operation of multimodal logistics parks in Rizhao Qinzhou and Xiamen will facilitate the

rapid implementation of end-to-end logistics services. We are committed to accelerating the

As a pioneer and steadfast player in the field of domestic container logistics in China pace of “bulk to container”. This initiative not only contributes to achieving the carbon

Zhonggu Logistics has always forged ahead with the spirit of an innovator. Amidst the peaking and carbon neutrality but also makes a significant impact in addressing global

waves of industrial transformation we continuously refine our original intention of climate change.“Changing China's Logistics with Containers” and product values of “Safe Efficientand Green” committing ourselves to providing customers with comprehensive container we constantly create value and distribute dividends to stakeholders. In 2024 we plan to

logistics solutions. For over two decades we have consistently aimed to build a symbiotic distribute dividends of RMB 1.66 billion (tax inclusive) accounting for 90.39% of the net

and win-win logistics ecosystem. Facing the challenges of our times we constantly profit gained over the same period providing investors with solid and stable cash returns.break through business boundaries reshaping service chains with a digital mindset Building on the Return Plan for the Next Three Years implemented in the previous reporting

and transforming the standardized advantages of containers into incremental value for period we will continue to maintain an active cash dividend policy from 2023 to 2025

our customers. On the journey of fulfilling corporate responsibilities we have always ensuring that the cumulative dividends over the three years will not be less than 60% of the

used the creation of shared value as a bond weaving a development network of shared distributable profits allowing all shareholders to share in the Company's growth.responsibilities and opportunities with our partners. Standing at a new developmental

coordinate we are setting our course with a broader vision committed to making every Looking ahead to 2025 Zhonggu Logistics will focus on the development theme ofjourney carry the warmth of industry progress through the continuous optimization of “deepening internal reforms to enhance efficiency and pursuing external blue oceanservice capabilities and the deepening of governance innovation. strategies for growth.” We will prioritize business innovation and cost reduction to improve

efficiency actively respond to external challenges and uncertainties and continue to pursueZhonggu Logistics upholds the long-term employee vision of “helping employees achieve high-quality development through relevant business activities. In the future we will adopt aambitions in fun and through learning.” We strictly safeguard the legitimate rights and more open approach to weaving our logistics network transforming steel vessels into green

interests of our employees and thoughtfully organize regular team-building activities and links that connect ecosystems and economies and in every departure and docking we will

holiday celebrations to enrich their cultural lives and strengthen their sense of belonging inscribe the era's annotations of sustainable development.to the Company. Through diverse initiatives we foster a stable and harmonious workingZhonggu Logistics at a Glance 6 Zhonggu Logistics at a Glance 7

Company Profile

Zhonggu Logistics Zhonggu Logistics is one of the first companies in China specializing in container shipping in the domestic trade sector. It was listed on the SSE in September 2020 (603565.SH). Since its

inception the Company has been offering clients from industrial and agricultural commerce

at a Glance safe efficient green and convenient whole-process multimodal transport services powered by standard containers and big data championing the corporate mission of "Changing China's Logistics with Containers" with steady development. Zhonggu Logistics has grown into a

comprehensive modern enterprise that integrates the business of liner transport comprehensive

logistics ship management entity investment etc.As of the end of the reporting period Zhonggu Logistics has extended its services across nearly

30 Chinese provinces/municipalities and 150 ports supported by a nationwide network of over

200 offices and branch companies. The Company maintains a diversified container fleet including

standard containers (general cargo containers food-grade SQ containers and coal containers) as

well as specialized units such as reefer containers flat racks and open-top containers capable of

transporting over 10000 types of goods. Complementing its core waterway operations Zhonggu

Logistics has integrated railway and highway resources to deliver comprehensive multimodal

transport services encompassing sea-land transportation river-sea coordination water-to-water

transshipment sea-rail intermodal services along with specialized cold chain logistics solutions.Having established one of China's most extensive maritime logistics networks the Company

connects coastal regions with the Yangtze and Pearl River systems through its "Three Horizontal

& One Vertical" strategic layout. It maintains leading market positions in domestic container

throughput at numerous coastal and Yangtze River ports.As one of China's earliest specialized companies engaged in coastal container transportation

Zhonggu Logistics has consistently ranked among the top three domestic container shipping

operators by fleet capacity. Currently implementing its transformative "Landing Strategy"

the Company is advancing full-process logistics capabilities to provide complete door-to-door

logistics solutions further strengthening its core competitiveness in the industry.Zhonggu Logistics at a Glance 8 Zhonggu Logistics at a Glance 9

Business Layout

Cultural Course and Glories

Values

Sustainability Course

Since its establishment Zhonggu Logistics has always regarded "culture

first" as its strategic gene building its core competitiveness with corporate

culture as the core. Over the past two decades we have continuously Formed an initial scale from 2010 to 2013

promoted the dynamic evolution and deepening of the cultural system

through strategic upgrades and organizational transformation constantly In 2011 key routes including "Shanghai-In 2010 Zhonggu Logistics was officially Guangzhou" "Qingdao Xiamen" "Qingdao

rejuvenating the vitality of the culture. This cultural system through four established. Its controlling shareholder Zhonggu Guangzhou" "Taicang-Guangzhou" and "Rizhao

functional modules of value orientation organizational cohesion behavior Shipping is one of the first companies in China Guangzhou" were successively opened marking that

shaping and talent motivation has formed the internal driving force for the specializing in container shipping in the domestic Zhonggu Logistics became one of the first companies trade sector in China specializing in container shipping in the

development of the enterprise becoming the core engine for leading the domestic trade sector that opened boutique routes

implementation of strategies and improving organizational efficiency.Strategic transformation from 2014 to 2016

Corporate Purpose: Bringing happiness to employees and creating value for the society In 2016 big ships were

In 2015 Shanghai Zhonggu introduced from "Zhonggu

In 2017 the direct-to-customer

Corporate Mission: Changing China's Logistics with Containers Logistics Co. Ltd. was Shandong" "Zhonggu Liaoning"

strategy was launched realizing

established etc. to improve the single ship

the transformation of service

load and shipping efficiency and objects from freight forwarders to direct customers

Corporate Vision: Leading the development of China's logistics serving the society and reduce shipping costs

empowering employees

New development from 2017 to 2021

Client Vision: Making customers the most competitive players in their industries

Staff Vision: Helping employees achieve ambitions in fun and through learning In 2017 strategic investors In 2019 with implementation of In 2021 further such as Softbank China the multimodal transport strategy In 2020

officially listed expanded transport Venture Capital (SBCVC form a multimodal transport capacity and

Corporate Pursuit: First-class company First-class talent First-class performance Softbank China Capital) logistics platform and the industrial on A-share enhanced core

First-class return YTO Express、 Shanghai tentacles were extended from the main board (603565. SH) competitiveness in FTZ Fund、East Bell economic hinterland of coastal and a new development

Venture Capital and GLP riverside provinces and cities to the

Business Style: Serious Agile Responsible for results periodwere introduced inland areas

Core Values: Loyalty Sincerity Diligence A new future in 2022-2024

Customer Values: We pursue customer satisfaction 2022: The first container ship titled"Zhonggu Jinan"with 4600 TEUs successfully set sail and the strategy of"shipping loose cargo via containers"was implemented in an orderly manner

2023: 15 of 18 container ships with 4600 TEUs have been delivered and the remaining three will be

Product Values: Safe Efficiency Green delivered in succession in the first half of 2024

2024: Zhonggu Logistics and China State Railway Group Co. Ltd jointly issued the nation's first "Through B/

Talent Values: Action precedes achievements contribution precedes value L System" for container multimodal transport achieving a groundbreaking "Through B/L System"Zhonggu Logistics at a Glance 10 Zhonggu Logistics at a Glance 11

Sustainability Rating Return to Shareholders

*Wind ESG Rating1: A In the past few years of rapid growth we always

*Sustainalytics Rating Score2: 22.7 value the return to shareholders. Since being listed on September 25 2020 the Company has distributed

cash dividends to shareholders and the cumulative

cash dividends reach up to 7.205 billion RMB.

2023

The cash dividend amounted

to RMB 1512 million (tax

inclusive)

2024

The cash dividend

amounted to RMB 1659

2021 million (tax inclusive)

The cash dividend amounted

to RMB 1438 million (tax

inclusive)

2022

The cash dividend amounted

to RMB 2015 million (tax

inclusive)

2020

The cash dividend

amounted to RMB 600

million (tax inclusive)

1 The Wind ESG Rating system categorizes companies into seven tiers (CCC B BB BBB A

AA AAA) based on score ranges evaluating ESG risks and opportunities inherent to their

respective industries while benchmarking performance against sector peers.

2 Sustainalytics' ESG risk ratings are determined through quantitative assessment of corporate

ESG exposure classifying enterprises into five risk tiers (Negligible Risk Low Risk Medium

Risk High Risk Severe Risk) proportionate to risk magnitude where higher rating scores

indicate greater risk exposure.Zhonggu Logistics at a Glance 12 Annual Features 13

Key Performance

Economic

Indicators Unit 2024 2023

Total TEU capacity Tons Approx. 3.39 million Approx. 3.51 million

Container inventory TEUs Approx. 410000 Approx. 470000 Annual Features

Shipping volume TEUs Approx.11.29 million Approx.15 million

Operating income RMB 11258253186 12438791418 Under the guidance of the national call

"to speed up the building of a modern

Net income attributed to shareholders RMB 1835400630 1717277555 comprehensive transport system that

Income tax expense RMB 615559193 560333171 is safe convenient efficient green and economical" Zhonggu Logistics

Audited basic earnings per share RMB/share 0.87 0.82 has broken through the industry pain

points with innovative power. In 2024

Cash dividend RMB 1659049851 1512045434 it launched the "Through Bill of Lading

Dividend payment rate % 90.39 88.05 (B/L) System" reform of multimodal

transport becoming a benchmark

practice for promoting the construction

Environmental of a strong transportation country. As

Indicators Unit 2024 2023 the core carrier of the "bulk to container"

strategy Zhonggu Logistics integrates

GHG emissions intensity Ton of CO2 equivalent/ shipping port railway and highway million RMB 71.94 80.95 resources to create an inland container

Energy intensity kWh/million RMB 273664 301242.42 multimodal transport system that is

"integrated with shipping port station

Generation intensity of hazardous waste Ton/million RMB 0.12 0.12 and network efficient intelligent and

Generation intensity of non-hazardous standardized". It realizes the unification of

waste Ton/million RMB 0.04 0.05 orders and related documents in the whole

chain seamless service connection and

Water consumption intensity Ton/million RMB 8.57 8.16 significant improvement in efficiency. Our

breakthroughs in the "bulk to container" and multimodal transport projects also verify the breakthrough

Social value of "Through B/L System" in reducing logistics costs and shortening delivery cycles and promote the

Indicators Unit 2024 2023 "dual carbon goals" with low-carbon transformation by optimizing the transportation structure to reduce

carbon emission intensity and empowering the standardization process of the industry with intelligent

Total training input RMB10000 295 290 upgrading.Average hours of training for employees Hour 51.15 44.28

Number of complaints received about

products and services No. 65 170

Donations RMB 408804 200000

Employee volunteer hours Hour 3797 12000

Social contribution per share RMB/share 1.50 1.65Annual Features 14 Annual Features 15

*During the reporting period Zhonggu Logistics saved about 222462

tons and 1402737 tons respectively compared with all rail transport

Effectiveness of and road transport through "bulk to container" mode;

Carbon Reduction *During the reporting period Zhonggu Logistics reduced carbon

emissions by 2270 tons through the project of optimizing the

longitudinal inclination of ships.In the field of green ships Zhonggu Logistics takes "full life cycle green management" as its orientation and builds

a systematic green ship operation system. the Company has made breakthrough progress in green ship technology

innovation. By implementing the ship trim optimization project it effectively saves fuel use and sets a benchmark

for the sustainable development of the industry. Zhonggu Logistics practices its commitment to green development

with concrete actions and continues to lead the logistics industry towards a greener and lower-carbon future.Improved Efficiency and

Higher Speed

On November 22 2024 the X9622 train carrying 3000 tons of aluminum rods arrived at Tianjin Port from Zhundong

Station in Xinjiang Uygur Autonomous Region. The goods were then loaded onto the Zhonggu Logistics container

liner bound for Dongguan Port in Guangdong Province. This shipment was jointly carried by China Railway

Low-carbon co-creation Urumqi Group Co. Ltd. a subsidiary of China State Railway Group and Zhonggu Logistics. This marked a historic breakthrough in China's multimodal transport "Through B/L System" service achieving seamless integrationthroughout the entire transportation process with “a single consignment a single bill of lading a single containerand a single settlement”.Zhonggu Logistics always adheres to the concept of green development. Through the innovative application of the

efficient transportation mode of "bulk to container" and green ship technology it has significantly improved logistics Compared to traditional transportation methods that involve multiple steps and procedures multimodal transport

efficiency and greatly reduced carbon emissions effectively promoting the green transformation of the industry. mode "Through B/L System" service integrates various modes of transportation achieving seamless connection

and unified scheduling throughout the entire process. This significantly reduces transfer time human resource

Zhonggu Logistics fully leverages the unique advantages of the "bulk to container" transportation mode deeply consumption and operational costs making cargo transportation faster and more efficient. By scientifically

optimizes the transportation structure fully leverages the advantages of waterway transportation in being low- matching train schedules with waterway shipping schedules multimodal transport mode "Through B/L System"

carbon and environmentally friendly effectively reduces the high energy consumption and high emissions problems service optimizes the utilization of railway capacity and waterway space minimizing the total transportation

of traditional road transportation and realizes the reduction of carbon emissions in the transportation link providing time and ensuring efficient and timely delivery of goods. Additionally multimodal transport mode "Through B/L

strong support for the acceleration of the green and low-carbon transformation of the transportation industry. System" service achieves integrated management of the entire transportation process including planning tracking

and settlement. With a standardized multimodal transport mode bill of lading customers only need to place one

According to data released by the National Bureau of Statistics China's cargo turnover reached 25448.6 billion order to enjoy seamless service from start to finish greatly simplifying logistics processes improving transportation

ton-kilometers in 2024. If all were transported by waterway it would consume 65.96 million tons of standard coal efficiency and providing an excellent logistics experience for customers.and emit 165 million tons of CO2. Compared with road and rail transport inland container waterway transport

has stronger energy-saving and emission-reduction capabilities and makes greater contributions to ecological Zhonggu Logistics has focused on key bottlenecks and challenges in logistics efficiency and cost optimization. It

protection. actively promotes mutual recognition and interoperability of standards for cargo names box types packaging etc.and orderly connects railway and waterway business processes. Together with partners it has developed efficient

During the reporting period the proportion of "bulk to container" boxes of Zhonggu Logistics was about 18.16% and and convenient rail-water intermodal logistics products. Through designing a standardized multimodal transport

the turnover was about 1991 billion ton-kilometers. The carbon emissions of the "bulk to container" transportation mode Zhonggu Logistics has effectively promoted the standardization and orderly operation of multimodal

mode were about 133608 tons saving about 222462 tons and 1402737 tons respectively compared with all rail transport "Through B/L System" service further improving transportation efficiency and setting an industry

transport and road transport. benchmark.Annual Features 16 Annual Features 17

Shared Data

After over a year and a half of in-depth research and collaborative development by Zhonggu

Logistics and its partners the multimodal transport mode "Through B/L System" online system

officially achieved automatic push functionality on October 21 2024. This breakthrough

upgrades the traditional offline manual logistics tracking method to online automation

successfully replacing manual intervention with digital technology significantly enhancing

data accuracy and timeliness.The "Through B/L System" online system integrates multiple intelligent functions. By breaking

down information barriers between railways and maritime transport it enables data sharing

and real-time analysis continuously optimizing the efficient connection of each link in

multimodal transport mode. It also provides customers with more precise and personalized

transportation optimization solutions further enhancing the value and efficiency of logistics

services. This system marks an important step towards the digital era in the transportation

industry becoming a key driving force for industry transformation.The "Through B/L System" can quickly count the status of in-transit COFCO Sugar Collective Mining Project: "Through B/L

in-port and out-of-stock etc. and can quickly analyze the recent System" Data Sharing Achievements Showcased

shipments in case of abnormal delayed arrival and make timely

remedial measures.The "Through B/L System" online data system can analyze the warehousing

capacity of warehouses through the time-to-delivery which becomes the

The "Through B/L System" analyzes the demand of different sections

through system data for example analyzing the warehouse's ability reference basis for the quantity of sugar purchased. Through the effective

to ship out through the time of shipment. docking of information system COFCO Sugar Collective Purchasing

Project not only realizes the end-to-end service for customers from

production and warehousing to sales and distribution at destination ports

The "Through B/L System" can provide timely solutions for customers but also continues to optimize the efficient connection of multimodal

by analyzing the time in transit and if the time in transit exceeds the transportation in the process of transportation through the system's data

customers' demand it can add railroads or other logistics solutions connection which has successfully become the best demonstration of the

for the customer. characteristics of the "Through B/L System" data sharing. The system has

successfully become the best demonstration of the data sharing feature of

Advantages of the "Through B/L System" the "Through B/L System".Additionally Zhonggu Logistics fully utilizes information technology carries out joint scientific

research projects for technological research promotes the sharing of data and information

between railroad and water transport and develops and puts into use the function of

multimodal transport "Through B/L System" on the railroad 95306 platform which can accept

the whole logistics business of railway and water transport and has the functions of multimodal

transport bill of lading and issuance and the whole tracking of goods Transportation statistics

analysis and other functions to realize the schedule and price transparency to create a more

efficient and intelligent mode of transportation.Strengthening ESG Governance 18 Strengthening ESG Governance 19

Strengthening ESG ESG Governance System

Governance ESG Governance Structure

Zhonggu Logistics has always adhered to its corporate To ensure the implementation and execution of the sustainable development strategy

mission of "changing the way logistics is conducted and to fulfill its commitment to sustainability Zhonggu Logistics has established a

in China with containers" and has made sustainable three-tier governance structure consisting of the Board of Directors an ESG Working

development a long-term strategic goal. By continuously Group and functional departments. This structure ensures the oversight guidance and

implementing the concept of sustainable development support of the Board and management for related work promoting in-depth sustainable

Zhonggu Logistics has not only achieved commercial development governance and institutional construction throughout the group from

value but also created long-term sustainable value for

society. top to bottom. By establishing a clear three-tier governance framework with defined

responsibilities we can effectively ensure the smooth progress of ESG initiatives better

address ESG challenges and integrate sustainable development principles into every

aspect of our business operations thereby significantly enhancing the company's sense

of social responsibility and its capabilities for sustainable development.*Make decisions on major ESG issues

*Review and analyze the progress related to

Board of attainment of ESG goals

Directors *Evaluate and determine ESG risks and

sustainable development suggestions

*Oversee work related to ESG

ESG Working *Formulate relevant ESG strategies systems and

Group management guidelines

*Prepare ESG reports

Functional *Implement work related to ESG

Departments

ESG Governance StructureStrengthening ESG Governance 20 Strengthening ESG Governance 21

Stakeholder Communication Double Materiality Assessment

Zhonggu Logistics consistently regards stakeholder engagement as a core component of During the reporting period we took into account regulatory requirements industry trends and stakeholder

its sustainable development strategy. We have established a regular and diverse two-way concerns to accurately identify the material issues for the company's sustainable development. In accordance

communication mechanism tailored to the characteristics of different stakeholders conducting with the requirements of the "Guidelines No. 14 of Shanghai Stock Exchange for Self-Regulation of Listed

systematic dialogues through various channels that cover core groups such as government and Companies—Sustainability Report (Trial)" the Company conducted a double materiality assessment. This

regulatory agencies shareholders and investors employees customers suppliers and community/ assessment comprehensively examined the potential significant financial impacts (hereinafter referred to as

environment representatives. "financial materiality") of each material issue on the company's business model operations and strategic planning in the short medium and long term. It also assessed in depth the significant impacts (hereinafter referred to as

Through regular or special communications we focus on six major dimensions: economy "impact materiality") that the company's performance on these issues might have on the economic social and

corporate governance environment employee rights supply chain management and community environmental aspects.development. We systematically gather the core demands of stakeholders and incorporate them into

strategic planning. This mechanism not only ensures the accurate transmission of various parties' Step One Step Two Step Three

concerns but also promotes the co-creation of multi-party value and the achievement of sustainable

development goals by continuously optimizing ESG practices.Identification of Material Issues Conducting the Double Materiality Result Analysis and Targeted Assessment Disclosure Enhancement

Stakeholder Key Concern Communication Mechanism

*Construct a clear analytical *Impact Materiality: Comprehensive *The Board of Directors

Tax transparency Information disclosure framework and establish explicit analysis of the scale scope irreversibility of the Company reviewed Government & regulatory evaluation criteria based on and likelihood of impact on various issues and confirmed the analysis

authorities Anti-corruption Feature reportsEnvironmental compliance Spot checks key considerations such as through surveys and questionnaires from results. Based on the results

domestic and international internal and external stakeholders. confirmed by the Board

standards industry policies and the Company conducted

Corporate governance Shareholders' meetings regulatory requirements; use *Financial Materiality: Comprehensive information disclosure and Information disclosure various methods including peer analysis by senior management of the practice improvement work

Shareholders & investors Risk management Market performance SSE E-interactive benchmarking and stakeholder Company on the likelihood of risks in a result-oriented and

Economic performance Roadshows interviews to accurately identify and opportunities the continuity of targeted manner.Site visits potential material issues for the resource use and the dependency on the

Company. relationship to ongoing operations.Equal employment

Diversity & equity of Staff congress meetings E-school Zhonggu Logistics Double Materiality Identification Process

Employees opportunityEmployee care Employee satisfaction

Training & education surveys Following the rigorous analysis process outlined above we have identified a total of 21 material topics. Among these

Occupational health & safety Discussion & communication issues one topic possesses both financial materiality and impact materiality that is double materiality; 1 topic is

highly significant at the financial level; and 6 topics have a high degree of impact materiality.Client satisfaction Client satisfaction survey

Client privacy protection Communication and

Clients Optimization of ship complaint channels

operation Trade shows & promotional

Safety management campaigns

Responsible sourcing Signing of a contract/

Contractors/Suppliers Environmental & social agreement

assessment of suppliers Supplier training Summits

Community interest

Environmental compliance

Communities GHG emission News media

Wastewater discharge Field investigation

managementStrengthening ESG Governance 22 Strengthening ESG Governance 23

Results of the Double Materiality Analysis for Material Topics

Category Topics Impact Financial Materiality Materiality

Environment Climate Change ●●● ●●●

Environment Environmental Compliance ●●● ●●○

Social Innovation ●●● ●●○ Response to Sustainable

Governance Stakeholder Engagement ●●● ●●○ Development Goals

Social Data Security and Customer Privacy ●●● ●●○

Zhonggu Logistics is deeply integrated into the United Nations' 2030 Agenda for Sustainable

Social Product and Service Safety and Quality ●●● ●●○ Development actively responding to the 17 Sustainable Development Goals (hereinafter

referred to as “SDGs”) and fully incorporating them into its sustainable development

Social Supply Chain Security ●●○ ●●○ strategic framework. When formulating ESG strategies the Company focuses on the core issues

of the logistics industry promoting the precise alignment of sustainable development goals

Social Technology Ethics ●●○ ●○○ with business practices through systematic planning and resource integration. This strategy

not only reflects substantial support for the global vision of sustainable development but also

Environment Waste Management ●●○ ●○○ contributes corporate strength to building an inclusive low-carbon global supply chain system

through industry innovation and responsible practices.Governance Anti-Commercial Bribery and Anti-Corruption ●●○ ●○○

Social Employee ●●○ ●○○

Governance Anti-Unfair Competition ●●○ ●○○

Environment Emission of Pollutants ●○○ ●○○

Governance Due Diligence ●○○ ●○○

Environment Circular Economy ●○○ ●○○

Environment Energy ●○○ ●○○

Environment Water Resource ●○○ ●○○

Environment Ecosystem and Biodiversity ●○○ ●○○

Social Equal Treatment of Small and Medium-sized Enterprises ●○○ ●○○

Social Public Welfare ●○○ ●○○

Social Rural Revitalization ●○○ ●○○Strengthening ESG Governance 24 Leading in Low-carbon Shipping 25

SDGs Response action of Response action of Zhonggu Logistics SDGs Zhonggu Logistics

Zhonggu Logistics has set up a

structured safety and health system. Zhonggu Logistics upholds fair

We boost staff safety awareness employment fostering an inclusive

and emergency response skills with workplace with equal opportunities. We Leading in Low-

comprehensive training. The Zhonggu use a strategic talent system to ensure

Care Fund also offers financial aid diversity enhancing our organization's

spending 59000 RMB this year. innovation and vitality. carbon Shipping

Zhonggu Logistics has efficiently

implemented a tiered training plan

completing management training Zhonggu Logistics boosts community Green development has always been the core strategy of Zhonggu

executive courses and a standardized welfare with 774 staff in volunteer Logistics which actively leads the new era of low-carbon shipping. In the

system for new hires along with activities and a 46756 RMB spend on face of the severe challenge of global climate change Zhonggu Logistics

teaching materials. This aligns talent social initiatives. has always taken China's "dual carbon" goal and the International

development with business growth. Maritime Organization (IMO) 2050 decarbonization goal as the lead

continuously improved the climate change management system and

Zhonggu Logistics prioritizes workplace integrated the low-carbon concept into the entire operation process. We

equity ensuring a level playing field Zhonggu Logistics has refined its continue to optimize ship energy efficiency explore green technology

for career advancement. The Company container management system focusing innovation provide customers with efficient and environmentally friendly

utilizes varied recruitment channels on both system management and route management to ensure quality control transportation solutions and promote the green transformation of the upholding diversity and fairness safeguarding the safety and efficiency of shipping industry through practical actions.and consistently refreshing its hiring

strategies. all freight logistics segments.Zhonggu Logistics has developed a Guided by green shipping goals

holistic water management system Zhonggu Logistics adheres to global and

encompassing extraction storage use local emission norms. The Company

and treatment. It enables scientific enhances its fleet's eco-performance

oversight and centralized control of all and reduces emissions by optimizing

internal water projects. ship design improving energy tech and applying eco-friendly coatings.Zhonggu Logistics follows national Driven by technological innovation and

environmental policies adopting management optimization Zhonggu

measures to reduce fuel consumption. Logistics has carried out water-saving

It has created a unique fuel efficiency technology improvements and recycling

model that promotes the shipping of wastewater comprehensively

industry's green shift and builds a enhancing the efficiency of water

sustainable operation system. resource utilization on ships and their

environmental friendliness.Zhonggu Logistics enhances its

compensation system with a dynamic

incentive model focused on skills and Zhonggu Logistics strengthens governance

performance informed by market and anti-corruption efforts focusing on

benchmarks. It also implements a supplier integrity training to support

feedback system to align employee sustainable development.goals with evaluation metrics fostering

talent and organizational growth.Zhonggu Logistics boosts digital Zhonggu Logistics enforces a

operations using info management transparent bidding process ensuring

to drive tech innovation in shipping fair procurement and lawful supplier

enhancing efficiency. partnerships.Leading in Low-carbon Shipping 26 Leading in Low-carbon Shipping 27

Strategy of Climate Change Governance

Zhonggu Logistics has developed a systematic climate change management strategy. Based on climate scenario

analysis the Company identifies and assesses climate-related risks and opportunities categorizing them into short-

term (0-3 years) medium-term (3-10 years) and long-term (over 10 years). Additionally in response to the identified

risks and opportunities the Company has formulated management strategies and plans to ensure that climate risk

management progresses in tandem with business development.Risk category Risk name Risk description Potential Response financial impacts strategy

Increased

It can easily cause damage to operational costs: Conducting

Tsunami shipping infrastructure including Impairment write- future weather

rainstorm and the destruction of port facilities offs and early research and

Climate Change Management other natural while also posing direct threats to retirement of existing forecasting in disasters ship structural safety cargo and assets. advance.crew members. Heightened Developing challenges in emergency

transportation. response

plans for acute

Under the premise of strictly complying with environmental management compliance requirements Zhonggu Acute risks Strong winds and cyclones risks such as Logistics takes science and foresight as the orientation and actively explores effective ways to alleviate climate etc. will affect the navigational the Typhoon

and environmental pressure. We have built a complete climate change governance system and based on the performance of ships including Increased Preparedness

recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) systematically identify lowering their speed and

operational costs: and Response

the risks and opportunities brought by climate change to formulate scientific climate response strategies Extreme weather deviating from their course. In

Impairment write- Guidelines.conditions such port operations strong winds offs and early Conducting

and action paths. In addition we have established several climate change response indicators achieved as typhoons and will directly affect the berthing retirement of existing emergency drills

quantitative assessment and accurate review through continuous monitoring and trend analysis and ensured cyclones safety of ships which may lead assets. for extreme Heightened

the effectiveness and sustainability of response measures. to longer waiting time at berths weather

or interruption of operations challenges in scenarios.increasing the uncertainty of cargo transportation.Climate Change Governance delivery.Continuously rising average

We integrate the management functions related to climate change into the Company's three-level ESG temperatures and changes in Higher operating

governance structure and build a transparent communication mechanism to ensure efficient collaboration Physical extreme wind speeds will not costs:

between each management level thereby continuously improving the effectiveness of climate change risks Global average only change the seaworthiness Changes in shipping temperature rise of traditional routes but may lanes result in

governance. also force shipping companies to increased fuel usage Planning

adjust sailing time windows and and time costs. alternate routes.Exploring the

*Decision-making on key matters related to climate risks and route network layouts. direction of high-

opportunities efficiency fuel Board of *Review and critique progress on climate change related objectives Rising sea levels will pose a or future new Directors *Assessment and identification of relevant climate risks and major threat to coastal port infrastructure with ports located Higher operating

energy fuel.Actively

opportunities and response strategies at low elevations in particular costs:Changes in shipping promoting the

Chronic at risk of inundation. Such application of

risks geographic changes will lead to

lanes result in

Sea level rise the permanent failure of some increased fuel

green shipping

usage and time technology ESG Working *Oversee climate change related work port facilities forcing shipping costs impairment and indirectly

Group *Develop strategies to address climate risks and opportunities companies to re-engineer their protecting global route networks increasing of existing assets write-offs and early the ecological detour distances and fuel environment of

consumption and significantly retirement. water transport

pushing up operating costs. through

measures such

Functional *Identify the risks and opportunities related to climate change Ocean acidification will accelerate as hull design

Departments *Conduct work related to strategies to address climate risks and

Ocean optimization.opportunities acidification

the rate of corrosion of ship hulls

and damage port infrastructure and related

Higher operating

to marine infrastructure and facilities

costs: increased

maintenance costs.Structure of climate change governance biodiversity

resulting in higher maintenance

costs for The Company.Leading in Low-carbon Shipping 28 Leading in Low-carbon Shipping 29

Risk category Risk name Risk description Potential Response financial impacts strategy Risk category Risk name Risk description

Potential Response

financial impacts strategy

Continuously Research and Actively

Climate change-related monitoring development of Without systems or new possible policy technologies to replace traditional Higher operating

promoting

legislation is being progressively and regulatory Technology energy-saving fuels The Company could be costs: Increased R&D

green energy

strengthened globally. The risk and emission efforts and higher transformation

Chinese government has trends and reduction impacted by increases in fossil fuel R&D costs. and exploring

continued to promote green conducting timely learning technologies

prices and regulatory compliance. green fuel for

shipping support the low-carbon ships.transformation of the shipping and training.industry and strengthen the Taking measures to reduce Investors regulators customers energy use requirements for and other stakeholders are

enterprises. At the same time IMO exhaust gas demanding higher disclosure Continuously

has put forward the requirement pollution such as installing Disclosure of requirements from the shipping

disclosing

of continuous reduction of Higher operating industry in addressing climate Revenues are down: sustainability

Policy and Requirements carbon emission intensity in the costs:

nitrogen removal information relating change. If management is not Decline in demand information

legal risks and regulatory international shipping industry Increased penalties

devices. to environmental

Laying out the Transition performance compliant or environmental for services.and improving

shifts in the IMO Initial Strategy for due to elevated carbon market risks performance disclosure is not

the level of

Greenhouse Gas Emission compliance risk. thorough it will affect corporate detail of its own

Reduction from Ships. In addition in advance and reputation and damage corporate disclosure.the introduction of some national conducting Reputational image.laws and regulations or restrictive research

clauses on climate change and on internal risk

the ecological environment has carbon pricing Actively

resulted in certain restrictions mechanism. improving

or impacts on The Company's Actively promoting Intense inter-firm Investors and customers may

our own

operations such as its ocean green energy competition for choose competitors with better Revenues are down:

environmental

freight forwarding business transformation environmental environmental performance Decline in demand

performance and

which may give rise to some legal continuing to

proceedings risks and exploreing performance

resulting in lower revenues for The for services.Company work on energy green fuel for conservation

ships. and emission

reduction.After the opening of the national

Transition carbon market the price of Higher operating

risks Carbon Markets carbon trading may increase

and Carbon which in turn will affect The costs:

Trading Company's internal environmental Carbon abatement Zhonggu Logistics adheres to the strategic mindset of "turning challenges into opportunities" and has established

management and business costs rise. a systematic mechanism for identifying and assessing climate-related opportunities. Against the backdrop of

decisions and operating costs. accelerating global climate governance the Company deeply recognizes that climate change is not only a challenge

but also a strategic opportunity. We precisely seize the market opportunities brought by the climate transition

In 2018 China's Ministry focusing on emerging fields such as green shipping. Through forward-looking business strategies and innovative

Policy and of Transportation and service models we continuously enhance our core competitiveness in the green logistics sector.legal risks Communications (MOTC) issued

the Implementation Plan for Ship

Air Pollutant Emission Control Higher operating

Control of air Areas. The new Guidelines for the costs: Opportunity Climate-related

pollution from Supervision and Management of Increased penalties type opportunities Definition of opportunities Response strategy

ships Air Pollutant Emissions from Ships due to elevated

will come into force on January compliance risk.

1 2020 which puts forward new There will be more green energy possibilities

requirements for the statistics and Energy Transformation of for the shipping industry in the future such Continuously strengthening the green ship

supervision of air pollution from sources the energy mix as green fuels and expansion of shore power system to ensure business continuity by

ships. installations. increasing the use of renewable energy.Higher carbon tax costs on

Rising energy crude oil and the application of Higher operating Actively The "bulk-to-container" and "Through

Continuously exerting the advantages

prices fuel cleaner technologies have costs: promoting green Resource Resource B/L System" modes of transportation

of intelligent asset scheduling and bulk-

to-machine transportation to grasp

increased the price of fuel oil. Higher fuel prices. energy transition efficiency efficiency gains will enhance resource efficiency in the transportation process for example by the opportunities of green logistics and exploring

green fuel for reducing packaging losses of materials.transformation in the mode of resource

Market intensification.Customers are making demands

risk ships.related to the reduction of carbon Studying the

Changes in emissions in containerized Revenues are down: extent of green Researching low-carbon products

Customer transport operations or preferring Decline in demand As the global low-carbon requirements consumption

Behavior energy-based transport services for services. Products and

Low-carbon

product and for businesses become more stringent

continuing to promote the "Through B/

shift in the

that produce no or fewer carbon services service innovation customers will favor green products and

L System" transportation model and

market.emissions. green markets in the future.continuing to disclose its low-carbon

performance.Leading in Low-carbon Shipping 30 Leading in Low-carbon Shipping 31

Emergency management Energy efficiency improvement

Opportunity Climate-related

type opportunities Definition of opportunities Response strategy

*The Company sets up emergency response *Promote green ship design and protect

teams for extreme weather such as typhoons the marine ecosystem by optimizing the

Compared to other transportation methods and holds meetings on typhoon prevention to longitudinal inclination of ships and using

such as air freight road transport and rail

transport shipping demonstrates superior carry out analysis and notification of typhoons harmless paints.performance in reducing CO2 emissions Continuously promoting transportation and release them in the typhoon prevention

Marketing per ton-kilometer. Additionally shipping models such as "bulk-to-container" and work group. After the extreme weather the *Enhance energy efficiency and reduce energy

Market and customer exhibits higher adaptability to certain " Through B/L System " while actively marine supervisor promptly follows up the ship consumption and emissions by increasing the

development extreme weather conditions such as heavy expanding customer needs to meet their to check the damage summarizes and reports installation rate of shore power equipment on

snowfall. As a result as customers gain a demands for a greener market. to the typhoon prevention group and the ships.deeper understanding of their own needs an engine supervisor arranges to guide the ship to

increasing number of them may shift their repair and provide necessary support.transportation preferences toward shipping.The " Through B/L System " transportation Deepening supply chain collaboration and

Resilience Increased supply model will enhance supply chain efficiency

working jointly with supply chain partners

chain resilience and resilience while also promoting data to improve logistics efficiency and drive Metrics and Targets

sharing across the supply chain. the green transformation of the shipping industry. Zhonggu Logistics has incorporated climate change-related indicators into the scope of data collection and

management and regularly discloses relevant data to enhance information transparency. During the reporting

period the climate change-related indicators are as follows:

Risk Management

Indicator Unit 2024 2023 Changes

Zhonggu Logistics has established a systematic climate change risk management mechanism by incorporating the

climate change risk management system into the Company's overall risk management framework. The Company Category 1 Total GHG Ton of CO2

has established a full-process management system from risk identification assessment to response ensuring emissions equivalent 807147.24 1005206.41 -19.70%

that all kinds of climate risks are under control. In terms of physical risk management the Company adopts a

dual guaranteed strategy of "system + technology". On the one hand it improves the organizational structure and Category 2 Total GHG Ton of CO2

system of risk management and on the other hand it strengthens technological investment and facility upgrades emissions3 equivalent 2716.65 1765.64 53.86%

effectively ensuring the stable operation of business. At the same time the Company fully leverages its own technical

advantages deeply integrates the low-carbon development concept into product research and development Ton of CO2

and service innovation actively grasps the development opportunities brought by climate change through the Total GHG emissions equivalent 809863.89 1006972.05 -19.57%

development of green ships and green shipping solutions and continuously promotes the green transformation of

the shipping industry. Ton of CO2

GHG emissions intensity equivalent/ million 71.94 80.95 -11.14%

RMB

Institutional guarantee Technical guarantee

Total direct energy

consumption kWh 3075916402.69 3745413597.62 -17.88%

*Zhonggu Logistics has established a *On ocean routes the Company innovatively

systematic climate risk emergency management introduced professional meteorological Gasoline kWh 1436680.23 1622251.42 -11.44%

system. By formulating and implementing navigation services and built an intelligent

specialized plans such as the Ship/Shore route optimization system through cooperation Diesel kWh 242131725.18 310356964.81 -21.98%

Emergency Manual and the Instructions with internationally renowned meteorological

on Typhoon Prevention and Resistance agencies which effectively avoided navigational Low sulfur fuel oil kWh 2806590130.45 3409340532.30 -17.68%

the company has built a comprehensive risks brought by extreme weather such as

mechanism to respond to extreme weather typhoons and rainstorms and significantly Lubricating oil kWh 25757866.83 24093849.09 -6.91%

conditions. Regular emergency drills and enhanced the operational efficiency of the

training sessions are conducted to ensure the vessels. During the reporting period the Total indirect energy consumption kWh 5062713.69 1678000.00 201.71%effective implementation of all preventive Company's fleet achieved a safe operation

measures. Through the adoption of proactive record of zero meteorological accidents 4

management practices the company has laying a solid foundation for the continuous Purchased electricity kWh 5062713.69 1678000.00 201.71%

effectively safeguarded crew safety vessel improvement of shipping safety management

integrity and cargo security providing reliable level.

3

safety assurance for business operations and The emission factor used there is the national average carbon dioxide emission factor for electricity of 0.5366kgCO2/kWh within

ensuring the stable functioning of its service the Announcement on the Publication of CO2 Emission Factors for Electricity in 2022 issued by the State Ministry of Ecology and Environment on 26 December 2024

network.

4 The scope of the 2024 purchased electricity data has been optimized and revised from previous year. The scope of the 2024 data

includes total purchased electricity for ship production and operation and total purchased electricity for office administration.Leading in Low-carbon Shipping 32 Leading in Low-carbon Shipping 33

In the field of green ship technology innovation Zhonggu Logistics has made a breakthrough by implementing the

trim optimization project6 which has pioneered a new model for energy conservation and emission reduction in

Low-carbon Sailing the shipping industry. By December 31 2024 this project had saved 744.968 tons of fuel for the Company through fine management and technological innovation significantly reducing carbon emission intensity. At the same time

Zhonggu Logistics has established a complete database and operating procedures providing valuable technical

reserves for the subsequent operation of self-operated ships on domestic trade and foreign trade routes. This

Zhonggu Logistics has established a low-carbon management system that covers the entire value chain integrating innovative practice not only demonstrates Zhonggu Logistics' technical strength in the field of green shipping but

the concept of green ships into strategic planning operational management and organizational culture construction. also provides replicable low-carbon solutions for the industry effectively promoting the sustainable development

In terms of emission reduction practices the Company uses technical means such as speed optimization and process of the shipping industry.route planning to significantly improve the energy efficiency of ships. At the same time the Company promotes a

green office plan involving all employees achieving dual improvements in environmental benefits and operational At the same time in the maintenance and maintenance of ships Zhonggu Logistics strictly implements the green

efficiency. and environmental protection concept establishes a strict paint procurement and use standard system and

comprehensively adopts environmentally friendly harmless paints. In the process of ship dock repair and daily

Green Ships maintenance we give priority to the selection of low VOC (volatile organic compounds) content of environmental

protection paint which significantly reduces the impact of harmful substances on marine ecology.Zhonggu Logistics always adheres to the operation concept of "green ship" takes "whole life cycle green

management" as the guidance and builds a systematic green ship operation system. Through multi-dimensional

elements such as ship design optimization and environmental protection paint use it continuously promotes the Fuel Management

green upgrade of ship performance.Zhonggu Logistics has established a systematic energy management system taking fuel efficiency management as

the core approach to achieve low-carbon transformation in shipping. The Company innovatively constructed a three-

*Adoption of S-BOW bow for better speed and wave resistance. in-one fuel efficiency improvement plan of "system + technology + management": at the system level it formulated

Green design *Optimize the longitudinal inclination of the ship to save fuel the Energy Management System and the Zhonggu Logistics Fuel Management Measures covering the entire fleet

for ships effectively. implementing full life cycle management of the fuel supply chain; at the technical level the Company used the ship

*Use of harmless paints to protect the marine environment. monitoring system to optimize routes in a timely manner achieving refined management of fuel; at the management

level the Company took multiple measures to save fuel use forming a fuel efficiency management model with

Zhonggu characteristics further promoting the green transformation of the shipping industry.*The latest version of the main engine is equipped with a shaft-

holding axle generator which provides better fuel-efficiency

Green design performance for the vessel. Procurement: fuel control

for mechanical *Adoption of energy-saving facilities such as high-efficiency

system propellers anti-vortex fins energy-saving pre-rotation ducts

and flap rudders etc. to enhance the ship's energy-efficiency *We have formulated the Fuel Oil Quality Control Management Program (Trial) to strictly control

performance. fuel quality from the source. All oil products shall be sampled and monitored by the authority

and tested 24 hours before formal use to ensure fuel efficiency.Green Ship System

*Improve the installation rate of shore power equipment on

existing vessels and require vessels to prioritize the use of shore Bunkering: accurate gauging

Green design power during berthing in domestic ports in order to reduce the

for energy fuel consumption of vessels.system *As of the end of the reporting period 47 of the 49 vessels owned *We have compiled the Management System for Equipping Calibration Use and Maintenance

by CGC Logistics had completed the installation of shore power of Measuring Instruments to standardize the measuring operation and management of tools. Our

equipment. oil measurement personnel boards the vessel to conduct the measurement preventing the fuel

waste caused by reasons such as fuel storage error or inaccurate measurements.Green design *Relying on the PMS system5 to monitor and timely eliminate all Storage: maintenance

for industrial kinds of running risking dripping and leaking phenomena of oil

software water and gas and reduce the resulting energy waste. *We have formulated many rules and policies such as the Instructions on Ship and Equipment

Maintenance the Instructions on Management of Spare Parts and Materials of Ships and

the Instructions on Ship Fuel Management to refine management and maintenance of ship

conditions eliminate fuel waste caused by evaporating emitting dripping or leaking of ship fuel.

5 PMS System：Planned Maintenance System which is a computerized management system used in ship

management to plan and perform equipment maintenance. 6 The trim optimization project refers to adjusting the ship's draft depth and the difference between the fore and

aft drafts (trim angle) in the water to alter the ship's hydrodynamic characteristics thereby reducing navigation

resistance and improving fuel efficiency.Leading in Low-carbon Shipping 34 Leading in Low-carbon Shipping 35

Usage: route optimization

*We have formulated many rules and policies such as the Instructions on Ship and Equipment

Maintenance Instructions on Management of Spare Parts and Materials of Ships and Instructions Ecological Co-construction

on Ship Fuel Management to refine management and maintenance of ship conditions eliminate

fuel waste caused by evaporating emitting dripping or leaking of ship fuel.Supervision: Examination of Abnormalities Zhonggu Logistics regards environmental compliance management as the cornerstone of sustainable

development and has established a multi-level environmental risk prevention and control system. The Company

*In daily fuel consumption management the company analyzes the consumption statistics strictly follows international regulations such as the International Maritime Organization (IMO) Convention

curve carries out timely examination of abnormal consumption to avoid waste of fuel the International Convention for the Prevention of Pollution from Ships (MARPOL) and the anti-pollution

consumption and carries out carbon intensity tracking and management for ships on convention as well as environmental protection laws and regulations in the places where it operates to build a

international routes. comprehensive environmental management system covering resource management exhaust gas management

waste management etc.Management Process of Ship Energy Consumption

The comprehensive and systematic ship energy consumption management system has brought significant benefits

to Zhonggu Logistics' energy conservation and emission reduction work. During the reporting period the fuel

consumption per 100 nautical miles of Zhonggu Logistics' self-operated fleet was 8.04 tons/100 nautical miles a Water Management

decrease of 7.2% compared with 2023.Green Office Water resource management is the core link of Zhonggu Logistics' implementation of the ecological priority strategy. The Company has formulated the Ship Water Resource Management Plan and the Implementation Plan

for Reducing Freshwater Consumption of Domestic Trade Ships internally and established a full-process water

Zhonggu Logistics actively practices green office and takes the initiative to build a concept and atmosphere of resource management system covering water intake storage use and sewage treatment. At the same time the

green and low-carbon participation for all employees within The Company. The Company not only systematically Company strictly controls the waste of water resources caused by equipment leakage and actively cultivates the

transforms its office premises into green ones but also instills the concept of green office in all employees in daily water-saving awareness of crew members. In 2024 our total amount of water circulation and reuse reached 455

office management. During the reporting period Zhonggu Logistics further promoted green office measures and tons.endeavored to root the concept of low-carbon environmental protection in the daily work of every employee.Paper Electricity Water Business Trip

Management Managment Management Management

*The Company office *Call on employees to *Adopt induction water *Encourage employees

unified management turn off the electricity collection for hand to give priority to

of office printing when not reqiured.. washing stopping when high-speed rail train

equipment requiring *Power supply in the not in use effectively subway and other public

employees to use office area is divided into avoiding the waste of transportation to reduce

double-sided printing as zones and the number water resources. carbon emissions during

far as possible to avoid of lights is appropriately travel.paper waste. reduced for overtime

work on holidays.Green Office ManagementLeading in Low-carbon Shipping 36 Leading in Low-carbon Shipping 37

Oil wastewater Ballast water Domestic sewage

Less freshwater Seawater management management management

consumption desalination

*Refined management: *Reasonable planning: *Storage compliance:

*Implementing a cross-secctional *Each vessel of Zhonggu Logistics

comparasion among ships in the is equipped with a freshwater Through process analysis In accordance with the Our vessels are equipped with

water consumption we've identified generator during international review and summarywe International Convention on domestic wastewater storage

the measures for reducing freshwater voyages the distilled water is have reduced the slag yield the Control and Management tanks and the off-board direct

use and taken such measures in the stored in a freshwater tank for daily of residues after cooking of Ships' Ballast Water and sea valve is cut off to eliminate

fleet. We usually used river water life engine-room equipment and oily sewage implementing Sediments issued by the non-compliant storage.to clean the decks of our ships to cooking. the system of accountability IMO Zhonggu Logistics has *Efficient disposal:

reduce the freshwater consumption. for ships that exceed the developed ballast waterrelated All domestic wastewater

standards. management plans to ensure must be treated by domestic

*Emission supervision: compliance in terms of ballast wastewater treatment

For the discharge of oily water. devices. We regularly cultivate

During the reporting period our water consumption and discharge were as follows: wastewater each vessel for *Technical upgrade: microorganisms and apply

foreign trade is equipped with All of the Company's current disinfectant tablets to reduce

an oil-water separator and a 15 ballast water treatment the pollutants in domestic

Category Subcategory Unit 2024 2023 Change PPM monitor. For the purpose systems adopt the technical sewage.of traceability the fleet timely means of mechanical *Emission control:

Total water records the discharge of treatment (filtration) and The domestic wastewater is

consumption ton 96470.00 101562.70 -5.01% oily wastewater in the Oily physical treatment (nitrogen discharged into the sea 12

Water Wastewater Logbook and asphyxiation method) to nautical miles away after being

consumption

ton/RMB the maintenance department continuously improve the pulverized in strict accordance Water intensity million 8.57 8.16 5.01% regularly inspects the ship's efficiency of ballast water with the discharge rate

wastewater control facilities treatment. requirements. The qualified

onboard. *Certification guarantee: domestic wastewater after

*Optimization and All ships of the Company biochemical treatment may

For wastewater management Zhonggu Logistics strictly complies with laws and regulations such as the Water rectification: have complied with the D-2 be pulverized and discharged

Pollution Prevention Law of the People's Republic of China the Marine Environmental Protection Law of the People's The Company actively standard (Biological and to places 3 nautical miles

Republic of China the Regulations on the Prevention of Marine Environmental Pollution by Ships the Emission seeks problems through Hygienic Standards for Ship offshore according to the

Standards of Pollutants from Ships and the International Convention for the Prevention of Pollution from Ships and interviews on all our self- Ballast Water Treatment ) discharge rate. In waters where

implements the requirements for compliance discharge and treatment of vessel wastewater. We classify domestic owned vessels to check the since 2017 and all ship ballast discharge is not allowed such

wastewater and engine room sewage of vessels and establish strict management systems and comprehensive generationmanagement and water treatment systems are as the inland sea of China any

compliance guarantees to avoid pollution of the marine environment. discharge of oily wastewater in compliance with USCG wastewater is taken back to from ships and propose certification. shore for disposal.rectification measures for the

problems found.Watewater ManagementLeading in Low-carbon Shipping 38 Leading in Low-carbon Shipping 39

During the reporting period our water consumption and discharge were as follows: Our waste gas emissions during the reporting period are as follows：

Category Subcategory Unit 2024 2023 Change Category Subcategory Unit 2024 2023 Changes

Production wastewater Ton 12110.60 11858.20 2.13% Nitrogen oxide Ton 21005.81 25517.07 -17.68%

Domestic wastewater Ton 4807.00 2296.54 109.31% Sulfur oxides Ton 2414.46 3690.00 -34.57%

Wastewater Total amount of

wastewater discharge8 Ton 16917.60 14154.74 19.52% Waste

Particulate matter Ton 519.66 631.26 -17.68%

gas

Total waste gas

Wastewater discharge Ton/million 1.50 1.14 31.81 emissions

Ton 23939.93 43115.06 -44.47%

intensity by revenue RMB

Waste gas emission Ton/million

intensity by revenue RMB 2.13 3.47 -38.72%

Waste Gas Management

Zhonggu Logistics has established a systematic air pollution prevention and control system strictly adhering Waste Management

to the Law of the People's Republic of China on the Prevention and Control of Atmospheric Pollution and the

Implementation Plan for Ship Air Pollutant Emission Control Area . The Company innovatively formulated the Zhonggu Logistics strictly adheres to domestic regulations such as the Environmental Protection Law of

Implementation Guidelines for Air Pollution Emission Control Areas in Chinese Waters for Ships . Through a the People's Republic of China the Energy Conservation Law of the People's Republic of China the Marine

comprehensive management approach of "source control + process optimization + end treatment" Zhonggu Environmental Protection Law of the People's Republic of China ，as well as international standards like theLogistics has significantly reduced the impact of ship operations on air pollution in port cities and coastal areas. International Convention for the Prevention of Pollution from Ships (MARPOL). The Company has established

institutional guidelines such as the Instructions for Ship Pollution Prevention and Management the Pollution

Process End-to-end Prevention Codes to ensure systematic and regulated management. Additionally we require all vessels to rigorously Source control optimization governance implement the Ship Garbage Management Plan ensuring precise classification of waste oil domestic garbage and

other types of waste to enhance waste management efficiency.*Use of low-sulphur fuel *Regular maintenance of *Installation of nitrogen For oily hazardous wastes such as sludge and dirty oil we do the decommissioning through qualified receiving

oil to reduce emissions of the oil separator and header removal devices to ensure units. At the same time we carry out on-site supervision and measurement of dirty oil and water removal by the

sulphur dioxide and other exhaust valves to ensure Fuel Oil Supervision Department to prevent the loss of normal fuel oil. In the agreements signed with suppliers we

air pollutants. adequate combustion and compliant emissions of emphasize formal operation to prevent pollution of dirty oil and fuel oil theft and sale and to avoid potential harm

reduce harmful emissions. exhaust gases. to the environment. As of the end of the reporting period we safely removed a total of 2684 cubic meters of dirty

oil and water without any violation of the law.Management Process of waste gas For the remaining general waste we strictly followed the regulations to categorize and decommission it for

receiving and disposal. During the reporting period our waste discharge was as follows：

Zhonggu Logistics installed denitrification devices

Category Subcategory Unit 2024 2023 Change

In August 2024 Zhonggu Logistics retrofited three

of its 4600-series vessels namely the "Zhonggu

Wuhan" "Zhonggu Nanchang" and "Zhonggu Total amount of non-9 Ton 418.00 675.20 -38.09%

Chengdu" with denitrification devices at COSCO hazardous waste

Shipping Heavy Industry in Shanghai. This initiative

aimed to ensure compliance with relevant emission Non-hazardous waste Ton/million

regulations and meet the required environmental emission intensity RMB

0.040.05-25.74%

standards. WasteDenitrification Devices Installation Total amount of

hazardous waste10 Ton 1309.34 1551.00 -15.58%

7 The main reason for the increase in domestic wastewater in the reporting period was the increase in the number Hazardous waste Ton/million

of owned office premises in various branches. emission intensity RMB 0.12 0.12 0%

8 The total amount of wastewater discharge contains production wastewater and domestic wastewater of which the

production wastewater is only the production wastewater generated in the process of ship transportation that does

not meet the emission regulations and other production wastewater in the grain flow are in strict compliance with 9 Non-hazardous waste consists of ship solid waste recycling decommissioning and office and household waste.the relevant national laws and regulations and are discharged into the ocean after treatment and compliance with

the discharge conditions. 10 Hazardous waste includes oil sludge and batteries with the latter starting to be counted for the first time in 2023.Deeply Exploring Customer Value 40 Deeply Exploring Customer Value 41

Deeply Exploring Diversified Routes

Customer Value Based on the Zhonggu Logistics information platform we have built a full-process transport service from booking to picking up cargos. Relying on the independently developed the Zhonggu Logistics Intelligent Information

Management System we have achieved seamless integration and intelligent dispatching of shipping railway road

With the corporate mission of "Change the Logistics Pattern in China by Containers" driven by globalization and and other modes of transport. Through the visualized tracking platform and electronic document system customers

industrial upgrading we build an intelligent logistics system with standardized containers as the core carrier and can grasp the dynamics of goods in transit in real time and complete the whole process of online business operation.based on the Internet of Things big data and other cutting-edge technologies we create a safe reliable efficient Based on the data-driven transport path optimization model we dynamically match capacity resources with

accurate and environmentally friendly Through B/L System intermodal transport solution for our customers. Through customer demand effectively improve timeliness and delivery certainty building a transparent controllable and

continuous optimization of digital operation network and intelligent service process we deeply integrate science traceable digital supply chain ecosystem for our customers while lowering comprehensive logistics costs.and technology innovation into each link of the supply chain strive to improve the efficiency of resource allocation

and the level of low-carbon operation and are committed to creating a new supply chain paradigm with long-term

competitiveness and ecological value with our customers.Building Excellent Service Information flows: vessels ports corporate Cash flow: across the container logistics systems mobile connectivity service chain

Rail Maritime Shipping Rail

Relying on a standardized operation and management mechanism Zhonggu Logistics is flexible in responding to the Land Water Land

new trend of market changes. We are actively expanding diversified routes continuously improving service quality Booking Packing transportation transportation transportation Picking up

and optimizing customer experience and are committed to providing customers with green efficient safe and Road River Transport Road

convenient all-round logistics services.Intermodal Transport Business ModelDeeply Exploring Customer Value 42 Deeply Exploring Customer Value 43

Domestic trade routes

Foreign trade routes

As of the end of the reporting period Zhonggu Logistics had established a domestic trade route networkcovering the coastline and major river basins forming a three-dimensional shipping network layout Actively responding to the national strategic approach of “take the domestic cycle as the mainstay and letcovering coastline and inland trunk lines of China specifically including more than 60 coastal trunk the domestic and international cycles promote each other ” with the existing advantages in domestic trade

lines more than 30 Yangtze River Basin routes and more than 160 Pearl River Basin routes. The network network Zhonggu Logistics focuses on the development pattern of double circulation and continues to

radiates 25 core coastal hub ports and more than 50 key inland river ports across the country. Through the deepen and expand the nearshore business. During the reporting period Zhonggu Logistics leased some of

systematic integration of port and shipping resources and the construction of multimodal transport mode our vessels through the time charter model with business scope covering 5 overseas countries and 12 ports at

corridors an efficient and hierarchical integrated logistics service system is built. home and abroad successfully connecting domestic and foreign trade transportation industry chain further

consolidating the advantageous position of Zhonggu Logistics in the field of foreign trade.In terms of strategic layout we rely on the three horizontal transportation corridors formed by the Yangtze

River golden waterway Pearl River shipping trunk line and coastal routes superimposed with north-south

vertical sea lanes to build a “three horizontal and one vertical” shipping backbone with strategic depth

characteristics. Through the coordinated development of port clusters coordinated trunk and branch Building Core Advantages and Leveraging Platform Resources

routes and seamless intermodal transport efforts are being made to promote the construction of a modern Sincere Service First for Synergistic Development

shipping and logistics corridor to achieve the deep integration of the river basin economic belt as well

as the coastal economic circle. In response to our customers' core demand for logistics quality we focus *Comparing with the original CCA mode of *Mobilizing domestic trade barge resources

on building a boutique express network connecting major coastal hubs. Providing customized maritime foreign trade barges the WGO (water gate) mode integrating and optimizing the barge route has lower costs and higher efficiency freeing allocation between Wuzhou and Nansha

solutions with timeliness and reliability through high density liner service priority berth protection and customers from the constraints of CCA reducing forming a win-win situation in terms of efficiency

intelligent operation management. the overall efficiency and cost providing and benefits and creating high-quality foreign

customers with diverse choices and forming trade services.the core competitiveness of Zhonggu Logistics'

foreign trade routes.Zhonggu Logistics Route

Establishing a Seamless Service System Establishing an Excellent Brand

with Comprehensive Assurance and Striving for Perfection

*Through end-to-end operational synergy *Breaking out of the geographical limitations

and dedicated one-on-one client guidance of Nansha Port integrating domestic trade port

we streamline processes to save time reduce container and barge resources combining

complexities and enhance peace of mind domestic trade experience extending and

elevating the overall customer experience to expanding the reach of foreign trade building

unprecedented levels. excellent reputation and credibility for Zhonggu

brand.New model of internal and external double circulation

As at the end of the reporting period Zhonggu Logistics operates 49 vessels with

approximately 2.47 million deadweight tons and an annual container volume of

approximately 11.29 million TEU. The South

China Sea

IslandsDeeply Exploring Customer Value 44 Deeply Exploring Customer Value 45

Customer Management

Quality Assurance Adhering to the core philosophy of "Customer satisfaction is our pursuit" Zhonggu Logistics continuously enhances the customer service standards. We constantly optimize our customer service proactively address

customer needs and are committed to comprehensively improving customer management and enhancing the

overall customer experience.Always adhering to the core philosophy of "customer first

quality first" Zhonggu Logistics continuously optimizes

the packing management system to provide customers Optimizing Customer Service

with an outstanding and stable experience in shipping Headquarter

services. On the basis of ensuring route safety Zhonggu Logistics continues to boost ship operation capabilities and

Area provide customers with efficient and stable shipping services.Container Management Governance Structure

We have established a four-level Road Safety Assurance

management structure from headquarters

to various functional departments. Within Port Safe and stable navigation conditions are the foundation of Zhonggu Logistics' development. During the

each department we actively pursue flat reporting period we established two management structures for navigation safety which are applicable to

management and are committed to reducing personnel related to the Company's safety management system (SMS) management organization (hereafter

the negative impact of redundant human Dispatch Team Repair Team Tracking Team referred to as "onshore employees") and all crew members of each vessel.resource structure on business promotion Leasing and Manufacturing Team

efficiency. Our subsidiary Yingkai Shipping has formulated an efficient structure directly managed by the general manager

for onshore employees. The general manager oversees five deputy general managers who are respectively

in charge of the Ship Management Department responsible for the specific operations of the vessels the

Container Management System Technical Support Department responsible for cutting-edge technological innovation the Procurement

Department responsible for the purchase of fuels and other materials and the Safety Supervision Department

We have established a sound container management system to implement quality responsible for overseeing and managing safety operations. In addition the Crew Department responsible for

management from both container management system and routing management to managing ship members and related matters is directly managed by the general manager. All departments

ensure safe and efficient freight transport links. perform their respective duties strictly implement daily management based on the Company Onshore

Employee Responsibilities to ensure optimal management.Container System Management Route Management

General Manager

*We conduct a full life cycle *In order to enhance transportation Crew Department

analysis of customer service efficiency we continously improve

analyze the scenarios involved in route management upgrading All Ships

the transportation process sort customer service quality while saving

them out and establish a container operating costs achieving a well- Vice General Managers

management system by applying balanced sustainable development

the digital platform we create a framework. In terms of route

full-process management function construction we manage and modify Ship Management Technical Support Procurement Safety Supervision Department Department Department Department

from ordering tracking inquiry conventional routes in a regular

modification settlement etc. manner. Regarding transit corridor

and further improve the customer development we strategically Responsibility framework for Yingkai Shipping Onshore Employees

experience. optimize vessel allocation and

cargo routing patterns with defined For all crew members on board we have established a responsibility framework with the ship's captain as the

objectives: accelerating time- ultimate responsible person. In our Company Crew Responsibilities we have strictly defined the specific duties

critical transshipment efficiency and navigation rules for all crew members requiring carrying out navigation work in strict accordance with the

balancing import-export cargo flows regulations and rules implement a full responsibility system and jointly maintain the safety and navigation

and maximizing route profitability order of the ship.indices.During the reporting period Zhonggu Logistics conducted a total of 25728 hours of quality and safety-related

training covering all company employees.Deeply Exploring Customer Value 46 Deeply Exploring Customer Value 47

Measures to Enhance Ship Operating Capacity Satisfying Customers Demands

Under the premise of ensuring navigation safety we have adopted a series of measures to continuously

optimize the operating capacity of our ships. These initiatives mainly revolve around two dimensions We actively improve our customer satisfaction survey mechanism and invite customers to participate in satisfaction

including the upgrade and optimization of the ship's own operating conditions as well as the cultivation surveys through diverse channels such as the Zhonggu e-commerce platform WeChat Official Account and WeChat

and enhancement of crew members' operational awareness and sense of responsibility. Moments.We continuously strive to increase the coverage of our customer satisfaction surveys encouraging customers to

Ship Speed-up Retrofit share their genuine experiences with Zhonggu Logistics services by offering incentives such as coupons. It helps us

identify areas waited for improvement and optimize our service levels. During the survey process we attach great

The maximum rotational speed of Zhonggu Logistics' City Series vessels has been maintained at importance to customer privacy and ensure that all questionnaires do not involve personal customer information.

113rpm during long-term operation operating under the optimal performance of main engines. During We conduct follow-up interviews with customers who express lower satisfaction levels documenting the reasons in

the reporting period to enhance the operational efficiency of the vessels the competent technical detail promptly reviewing and continuously tracking the issues.department conducted detailed testing and analysis of the main engines' thermodynamic parameters

including key indicators such as rotational speed power explosion pressure and fuel consumption. During the reporting period Zhonggu Logistics distributed satisfaction surveys to a total of 1749 active booking

On the premise of ensuring safety the technical personnel decided to adjust the operating parameters customers with 986 responses received representing a response rate of 56.4%. In 2024 the overall customer

of the main engines. Based on the test results and actual operational requirements the maximum satisfaction rate for the Company was 93.2%. We conducted a summary analysis of each customer feedback and

operating rotational speed of the main engines was increased to 116rpm. To ensure the safe operation formulated follow-up rectification measures clarifying the responsible departments and rectification deadlines. For

of the main engines the technical personnel carefully inspected the explosion pressure according to reasonable suggestions and demands raised by customers we actively adopted them and developed corresponding

the load conditions ensuring operating below the safety limit of 145bar. We also made reasonable improvement measures to ensure effective problem resolution. We also strengthened communication and

adjustments to the maximum fuel limit of the main engines controlling it within 48% of the throttle exchange with customers promptly providing feedback on progress and won the understanding and support of our

scale to avoid engine overload and fuel wastage thereby significantly improving the operational customers.efficiency of the main engines on the City Series vessels.Ship Monitoring and Satellite Navigation System Customer Complaint Management

During the reporting period we upgraded the equipment on five vessels namely Zhonggu Nanjing

Zhonggu Chongqing Zhonggu Wuhan Zhonggu Nanchang and Zhonggu Chengdu. A series of satellite We have established an open and transparent complaint reporting mechanism to enhance our response capability

communication devices were updated for each vessel providing strong support for their operation on to customer complaints. We continue to implement the Operation Manual for Customer Complaint Handling

international trade routes. During operation all vessels’ equipment functioned normally and was Procedures and Management Measures assisting customers in efficiently resolving issues based on standardized

recorded effectively enhancing the navigation safety and communication capabilities of the vessels. complaint handling processes.Meanwhile as one of our important measures to promote safe navigation and digitalized/intelligent

maritime operations the installation of CCTV monitoring systems continued progress. As of the end of

the reporting period all our vessels have been equipped with CCTV monitoring systems enabling real- Receive Record Preliminary Determine Detailed Rectify Customer Record

time monitoring of various areas on the vessels. This has further strengthened the safety management Complaint Complaint Investigation Responsibility Investigation the Issue Feedback and Analyze

level and emergency response capabilities of the vessels. Through equipment upgrades and the

installation of CCTV monitoring systems the navigation safety and digitalized/intelligent management

level of our vessels have been significantly improved.Complaint Resolution Process

Crew Excellence Recognition Program

During the reporting period the Company received a total of 65 complaints

To recognize ships and crew members who have excelled in their operations we have established about products and services a year-on-year decrease of 62% and the complaint

a recognition program for outstanding ships and crew members. The evaluation process strictly handling rate was 100%.follows the guidelines outlined in the evaluation notice issued by the Safety Supervision Department

ensuring fairness impartiality transparency and objectivity. We select "Excellent Ships" based

on their outstanding performance in all aspects including safety efficiency and environmental

protection. "Excellent Crew Members" must demonstrate a strong work ethic a proactive attitude

and an innovative spirit. They should be able to solve technical problems on board serve as role

models within the team and achieve excellent results in peer evaluations. We present gifts ranging

in value from 800 to 5000 RMB to the awarded crew members along with medals certificates and

other honorary proofs to acknowledge their outstanding contributions to the Company. We believe

the program will further motivate all crew members to continue pursuing excellence and drive the

business to next level.Deeply Exploring Customer Value 48 Deeply Exploring Customer Value 49

Digital Shipping Digital Platform Management

Transformation E-commerce Platform

Zhonggu Logistics aims to enhance business Cargo

Digitalization is a new engine for the shipping industry to move towards high-quality development and is the key collaboration and service capabilities by Tracking

to enhance the efficiency of resource allocation grasp the pulse of the times and seize the strategic opportunities operating its business in a digital environment System for Bill Switching

in the unprecedented changes of the century as well as one of the vital means to promote the innovation and driving its own digital transformation efforts Foreign Trade System

development of the shipping business and stimulate the new kinetic energy. Zhonggu Logistics adheres to the based on actual demands and committing to

corporate goal of “first-class enterprise first-class talents first-class performance and first-class return” and building a smart and efficient digital shipping

is committed to promoting the digital transformation of the shipping industry serving the national strategy of a system. We have established a digital platform Digital

strong maritime nation and promoting the development of the Maritime Silk Road. management system and developed and Platform

deployed six core systems: the Zhonggu

E-commerce Platform Bill Switching System Cargo

Digital Strategic Goals Tugging System Ship Operation System Cargo Tracking Tugging System for

Tracking System for Domestic Trade Cargo

To further improve the resource allocation Digitalization Domestic

System

efficiency of the Company and achieve the Tracking System for Foreign Trade providing Trade

goals of transparency efficiency green and customers with comprehensive information

safety of business operations the Company services throughout the logistics process.Ship

Operation

has clearly put forward the development System

strategy of the logistics system:

digitalization three-dimensionalization

Platformization and mobilization. We are

firmly orientated towards scientific and Mobilization Internet Shipping Three- Digital Technology Innovation

technological innovation continuously dimensionalization

increasing R&D investment and As one of the first Chinese enterprises that have introduced the Internet into shipping Zhonggu Logistics insists on

accelerating the transformation and the research development and application of technology while making full use of technological advantages. Relying

application of achievements. Adhering to on existing technologies we have enhanced research and development of electronic data software RPA technology

the goal we optimize the digital platform AI and other intelligent innovation technologies to enhance our business management capability.management system actively promote

the practice of technological innovation *We have achieved electronic data interchange (EDI)

and provide customers with a solid and Platformization integration through the EDI software for the ports and yards.reliable guarantee with excellent safety Electronic data *The Company has comprehensively realized e-commerce

management capabilities. software booking without written authorization. The electronic booking

rate reaches up to 100%.Zhonggu Logistics has fully integrated the group business and financial data flows establishing a unified perspective *The B2B automatic data docking empowers the

on financial management that provides solid data support for decision-making analysis forming effective production of enterprises greatly.management control measures. We focused on deepening the application of big data enhancing our data output Robotic process *Through faster and more accurate processing of

and service capabilities for other business segments through the implementation of multiple data application automation (RPA) customers'business documents we provide customers with

scenarios. In terms of business system construction we have emphasized improving the scalability and flexibility more efficient and reliable services.of the systems successfully building a comprehensive order processing center that integrates sea freight road

transport rail transport and barge transport. In addition we deeply analyzed customer needs and achieved *AI photo recognition technology is used to realize the

deep integration with customer systems enabling direct data exchange and significantly enhancing the customer AI approves the fast approval of container repair quotation repair review

experience. At the same time we attach great importance to data collection and governance integrating data repair requiries automatic account reconciliation etc. which ensures data

resources from various systems and modeling data based on business scenarios to provide comprehensive and accuracy while improving efficiency.accurate data service support for business development.Deeply Exploring Customer Value 50 Deeply Exploring Customer Value 51

Digital Twin System for Qinzhou Yard Data Security Management

Zhonggu Logistics has successfully applied a digital twin system at Qinzhou Multimodal Container Logistics Zhonggu Logistics strictly complying with the relevant laws and regulations of business locations and established

Base marking a deep integration of information technology and logistics management. Our digital twin system the Information Security Management System of Shanghai Zhonggu Logistics Co. Ltd. to ensure data security. We

utilizes high-fidelity virtual modeling technology to accurately replicate the physical environment of the ensured data security through security information disclosure and deepened cooperation with third-party service

logistics base including but not limited to the physical layout architectural structures and equipment status providers through regular case analysis business asset sorting and vulnerability scanning ensuring the security

while continuously collecting and updating real-time data to ensure consistency between the virtual model and and controllability of online external services.the actual base. Furthermore the system deeply integrates actual production data from the base such as yard

cargo throughput transportation times and equipment utilization rates. Through information collaboration

means it achieves information connectivity between the terminal and the yard ensuring that the entry and exit Website and application security assessment

of containers are traceable and that container pickups as well as

returns are well-documented. These initiatives and the data they *Leverage the application development lifecycle comprehensively identify cybersecurity issues

generate not only drive real-time changes in the virtual model but to ensure software security at all times.also powerfully support in-depth analysis and decision-making Website and application security reinforcement

optimization for base operations. Enabling real-time monitoring

of the actual operational situation of the base through the system *Improve the rationality of application code deployment to continuously enhance security.providing a comprehensive view of production activities and

significantly enhancing the intelligence level and operational Filtering of external threats

efficiency of the base.*Deploy web firewalls IPS and other devices to monitor filter and log malicious external access

attempts.Personalized System Development Status monitoring

*Implement monitoring of the status of protected application pages and synchronously monitor

We actively share outstanding digital experiences within the industry and meet the digital needs of our clients and website access log directories to determine if any attacks have occurred.third-party enterprises. During the reporting period we assisted COFCO Sugar in establishing a comprehensive

information management system achieving system integration and facilitating collaborative business development. Emergency response

*For security incidents with a higher likelihood of occurring promptly prepare contingency plans

COFCO Sugar Integrated System and conduct drills striving to report handle and summarize the incidents in the most efficient

and reasonable manner possible after they occur.During the reporting period Zhonggu Logistics conducted in-depth system integration with COFCO Sugar.Through automatic interface retrieval of consignment information we ensured the accuracy and timeliness Data security management

of the information while synchronizing logistics transportation dynamics enhancing the transparency and

efficiency of logistics management. We focused on increasing the automation of key business process nodes *Strictly enforce backup mechanisms for applications databases and documents and ensure

simplifying data entry and processing and reducing the risk of human error. One employee can now complete that backup data is stored independently of production and office environments.the workload previously handled by three freeing up productivity and providing a smooth and efficient

business experience. This project significantly improved Zhonggu Logistics' capability and competitiveness. As

the first service provider to interface with COFCO Sugar this system facilitated in-depth business cooperation Data Security Management Measures

between the two parties. As of the end of the reporting period the system is widely used to serve COFCO Sugar

in the Northeast Southeast North China and other regions enhancing operational efficiency and customer Upgrade and Optimization of the Security Management System

satisfaction.Against the backdrop of accelerating digital transformation Zhonggu Logistics has implemented a series of

systematic optimization projects to break through operational efficiency bottlenecks. To address efficiency

issues caused by cumbersome operations in the business system we have reconstructed the quick menu

function based on user behavior data analysis utilizing intelligent algorithms to prioritize the display of

frequently used modules. In addition we have synchronously upgraded the asset management system

leveraging the function of automatically collecting device information upon terminal login to transform the

traditional manual computer inventory model into real-time digital management thereby steadily improving

the accuracy of asset inventory.Deeply Exploring Customer Value 52 Deeply Exploring Customer Value 53

Privacy Protection Measures

We prioritize cooperation with suppliers that have obtained system certifications. During the reporting period

Zhonggu Logistics strictly adheres to relevant laws and regulations on privacy protection and has established several of our suppliers have obtained system certifications including ISO 14001 ISO 45001 and ISO 9001.information security management and customer privacy management systems. We follow the principle of collecting

the minimum amount of information necessary and are committed to implementing full-process management of For suppliers lagging in the evaluation we have further clarified specific supplier exit rules. All suppliers

customer privacy protection starting from the source of information. We regularly conduct information security drills should prepare for subsequent work in accordance with the handling opinions issued after discussion by

and strictly carry out measures such as screening for weak passwords in the system and inspecting information the evaluation committee. For suppliers with an annual evaluation score below 60 points the evaluation

storage environments. We are dedicated to improving the privacy information management system and enhancing committee could terminate their cooperation if they fail to make sufficient improvements within a fixed period.the ability of our employees to protect all types of information. During the reporting period we conducted a phishing

email information security protection drill for 296 employees during which 6 employees submitted personal

information. After the drill we issued a summary report on the drill situation and provided relevant safety training

and educational resources aiming to enhance employees' safety awareness and response capabilities ensuring that Annual Supplier Evaluation

the Company can respond quickly and effectively to cybersecurity challenges.To enhance the Company's supply chain management level recognize outstanding suppliers and service

providers and motivate suppliers to continuously improve service

quality we organized an annual supplier evaluation during

Strengthening Supply the reporting period. The evaluation covered four categories: spare parts materials lubricants and fuel encompassing over

a hundred suppliers. The evaluation criteria included product

Chain Management quality supply capability price reasonability after-sales service and other dimensions. Through a rigorous evaluation process we

ultimately selected the top ten gold medal suppliers. We held an

A stable and high-quality partnership is a crucial guarantee for the sustained development of Zhonggu Logistics. We award ceremony for these ten suppliers to recognize their service

adhere to relevant laws and regulations establish an internal supplier management system and rigorously conduct quality and outstanding contributions to ensuring the safe and

supply chain management work integrating compliance and sustainability requirements into the entire process of green operation of our ships.tender initiation supplier onboarding cooperation and evaluation.Supplier Onboarding Green Fleet

During the reporting period we introduced a "pre-approval principle" for newly onboarded suppliers in our During the critical period of the shipping industry's transition towards green and low-carbon operations

supplier introduction process. Pre-approved suppliers are required to fill out the New Supplier Approval Form Zhonggu Logistics has actively responded to the national “dual carbon” goals by vigorously promoting

for the Procurement Department covering dimensions such as supplier price advantages product technical the construction and application of a new energy fleet. During the reporting period through the Company's

parameters and supply capabilities. Only after passing the approval process can they become suppliers of introduction of new fleets and guidance and promotion among existing fleets a total of 88 new energy vehicles

Zhonggu Logistics. When new suppliers have been cooperating for a full year and achieves a 3A or above rating from 14 fleets were put into operation transporting 3592 TEUs (twenty-foot equivalent units). This achievement

in the Company's internal supplier evaluation they can apply to join the Qualified Supplier List . Based on this not only reflects the Company's active exploration in the field of new energy but also demonstrates its firm

process we onboarded one new spare parts supplier during the reporting period. determination to promote sustainable development within the industry. Based on the strong start in 2024 and

actual operational experience the Company plans to further expand new energy vehicle transportation in 2025

Furthermore during the reporting period we introduced a trailer supplier system in the bidding process for to achieve broader environmental and economic benefits.our nationwide fleet of suppliers digitizing the bidding process and integrating integrity agreements and safety

operation standard documents. All participating fleet suppliers in the bidding process are required to study and

comply with these documents and we conduct promotional training for bidding fleet suppliers during the bid Supplier Communication

negotiation phase.Zhonggu Logistics actively engages in two-way communication with its suppliers committed to providing timely

Supplier Evaluation industry information and policy dissemination and continuously conducting regular review plans to assess

suppliers' operational performance during the period. We closely monitor the dynamic release of government

During the reporting period we further improved the marine material procurement management system information and promptly synchronize content related to our fleet supplier business with relevant suppliers. We

- the supplier evaluation system detailing the standards and scoring rules for annual supplier evaluations also organize necessary promotion and training meetings to facilitate essential communication and exchanges with

effectively guiding the annual supplier rating. Based on the specific needs of business activities we adjusted the responsible personnel scheduling managers and drivers of our fleet suppliers. We continuously improve the

the weightings of price service terms and other dimensions in the supplier service evaluation emphasizing efficiency of bilateral communication actively listen to suppliers' opinions understand their difficulties and provide

the assessment of supplier technical service support feedback efficiency. This further meets the specific targeted training striving to create an efficient supplier communication system.needs of various business lines for suppliers and evaluates suppliers through a combination of qualitative and

quantitative methods. During the reporting period we conducted a total of 12 supplier training sessions with a total training duration of 24

hours covering nearly 1200 suppliers of Zhonggu Logistics.Creating a Harmonious Community 54 Creating a Harmonious Community 55

Creating a

Harmonious Diversity and Equity

Community

Zhonggu Logistics strictly adheres to employment-related legal regulations in all operational jurisdictions

including the Labor Law of the People's Republic of China the Labor Contract Law of the People's Republic

Zhonggu Logistics continues to refine its talent acquisition and human capital management of China the Law of the People's Republic of China on Protection of Minors the Company upholds fair

frameworks implementing strategic initiatives that systematically empower professional equitable and non-discriminatory employment practices maintaining strict compliance with legal

growth through strengthened competency development programs performance-driven requirements. We expressly prohibit child labor and forced labor in all operations. During the reporting

incentive structures and streamlined career progression pathways. We are committed to period no incidents of non-compliance with child labor or forced labor regulations were recorded.fostering an equitable respectful and inclusive workplace culture that values diversity

while enabling continuous employee advancement through organization-wide training To enhance the scientific precision and operational effectiveness of our recruitment processes while

systems and cross-functional collaboration mechanisms. These integrated approaches standardizing employee conduct we comprehensively revised the Recruitment Policy and the Employee

facilitate synergistic alignment between organizational objectives and individual career Handbook during the reporting period. These updates aim to cultivate a positive collaborative work

aspirations ultimately achieving sustainable co-development and collective value creation. environment and reinforce the Company's reputable corporate image.To attract and select outstanding talents Zhonggu Logistics has established a diversified recruitment

channel covering on-site submission online application portal email submission and application via

WeChat official account. Meanwhile we adhere to the principles of diversity and fairness in recruitment

continuously innovate recruitment strategies and enhance the professionalism and effectiveness of our

recruitment efforts through a variety of initiatives including off-campus experimental teaching bases

campus job fairs and industry-university cooperation.Zhonggu Logistics has partnered with Guangxi University to jointly establish the

“Guangxi University-Zhonggu Logistics Internship and Practice Base”

In 2024 to deepen the integration of industry

academia and research and to fully leverage

the strengths of both universities and

enterprises in teaching research production

and talent resources Zhonggu Logistics and

Guangxi University formally signed a university-

enterprise cooperation agreement to buildthe “Guangxi University-Zhonggu LogisticsInternship and Practice Base.” Moving

forward the two parties will engage in in-

depth cooperation in multiple areas including

talent cultivation teaching practice and talent

employment. They aim to jointly promote

the coordinated development of education

and industry and deliver more outstanding

professionals to the sector.Creating a Harmonious Community 56 Creating a Harmonious Community 57

As of the end of the reporting 349

Zhonggu Logistics Partners with Shanghai Maritime University to Establish the period Zhonggu Logistics Female

"Industry-Education Integration Graduate Joint Training Base" had a total workforce of 1539

employees of whom 1532 were Total number of

full-time employees. The specific employees by

In 2024 Zhonggu Logistics entered into a deep structure of our workforce is as gender

strategic partnership with Shanghai Maritime follows: 1183

University to jointly establish the "Industry- Male

Education Integration Graduate Joint Training

Base." Both parties will fully capitalize on their

respective strengths in the industry and academic Top-level management

fields and engage in comprehensive university- 55 43

enterprise collaboration through a variety of Mid-level management 50 and above

cooperative models. This collaboration is aimed at 120

achieving resource sharing and complementary advantages promoting mutual development and

striving for a "win-win situation in industry and academia." Ultimately the goal is to cultivate more

high-quality professional talents for the industry.Campus Recruitment Fairs

Zhonggu Logistics places great emphasis on university-enterprise cooperation and actively Total number of 709 Total number of 780

collaborates with multiple higher education institutions to continuously enhance the employees by 31-50 employees by 30 and

professionalism and effectiveness of its recruitment efforts. During the reporting period Zhonggu rank age below

Logistics organized several recruitment fairs and presentations including the 2024 Campus

Recruitment Fair at Chang'an University the 2024 Campus Recruitment Presentation at Shaanxi

University of Science and Technology the 2024 Campus Recruitment Fair at Xi'an Shiyou University Rank & file

and the "Enterprises on Campus - Zhonggu Logistics Campus Recruitment Thematic Session" 1357

at Dalian Maritime University. These activities not only provided university graduates with the

opportunity to gain an in-depth understanding of Zhonggu Logistics but also attracted a large

number of outstanding talents to the Company.Zhonggu Logistics places high importance on the rights and benefits of its employees and is

committed to creating a high-quality working environment and development opportunities to

effectively reduce employee turnover. During the reporting period the overall employee turnover rate

of the Company was 12%. We always respect the personal choices of our employees. For those who

submit resignation applications we will handle their resignation procedures in accordance with laws

and regulations ensuring the entire process is fair and transparent.Indicator 2024 2023 Changes

2024 Campus Recruitment Fair at Chang'an 2024 Campus Recruitment Presentation at

University Shaanxi University of Science and Technology Total employee turnover rate 12% 16% -4%

Employee Male 11% 14% -3%

turnover rate by

gender Female 14% 19% -5%

30 and below 18% 17% 1%

Employee

turnover rate by 31-50 5% 13% -8%

2024 Campus Recruitment Fair at Xi'an Campus Recruitment Thematic Session at age

Shiyou University Dalian Maritime University Above 50 13% 19% -6%Creating a Harmonious Community 58 Creating a Harmonious Community 59

Talent External Training Programs for Senior Management Elite

Development Improve the Training Leaders Classroom TrainingManagement Measures

*Organized various forms types and *Conducted a series of 13 senior

Optimize the new employee frequent external training programs management classroom training sessions

induction training system including management iron army special focusing on key areas such as strategic Zhonggu Logistics has always adhered to the people- decision-making leadership enhancement

oriented philosophy continuously optimizing the training and "Profit Center * Growth System" special training. and innovative thinking cultivation to create

onboarding training system for new employees and the Establish the training elite classrooms help management personnel

development training system for current employees. The evaluation mechanism at all levels improve their management skills

Company places great emphasis on employee training and consolidate team wisdom and promote the

development committed to fostering employee growth implementation of strategies.and laying a solid foundation of talent for the sustainable

development of the enterprise. Talent Management and Cultivation System

New Employee Training Establishment of New Employee

During the reporting period Zhonggu Logistics revised and improved the Training Management Measures Training Materials

further standardizing the training work for new employees during their probationary period across various

units. By unifying management standards and optimizing the onboarding training system the Company has *Planned and organized the 2024 *Completed the compilation and printing

provided more systematic and targeted training content for new graduates during their probationary period. new employee training for the Group of the Company's 2024 new employee

This helps them quickly integrate into the Company’s culture become familiar with their job responsibilities tracking the learning progress and work training materials standardizing the

and smoothly transition into their roles. Zhonggu Logistics has also established a comprehensive assessment performance of new employees throughout content and standards of training to ensure

plan for training work and assessments and comparisons are conducted based on this plan. The assessment the process to ensure they quickly adapt to the systematicness and coherence of new

plan covers three core indicators: internal training within the Company onboarding training and external job requirements and inject fresh vitality into employee learning.training. Through a scientific and rational evaluation system the Company encourages all units to place high the Company's business development.importance on employee training thereby effectively improving the quality and effectiveness of training.“Profit Center * Growth System” Special External Training

Zhonggu Logistics has always placed employee capability development at a strategic level. By constructing

a tiered and categorized training system we systematically enhance employees’ professional competence

management skills and team collaboration efficiency thereby injecting talent momentum into the Company's During the reporting period approximately 30

high-quality development. We design differentiated development paths for employees at different levels and senior management representatives from the

create a full-cycle development mechanism that covers all staff members: New employees quickly integrate headquarters and regional divisions participated

into the corporate culture and business processes through immersive onboarding training while current in a three-day "Profit Center * Growth System"

employees rely on progressive capability enhancement programs to achieve continuous growth. We have also special external training in two separate groups.innovatively adopted a blended learning model that combines online and offline modes allowing employees The core concept of this training was to optimize

to choose their learning paths according to their needs and significantly improving the effectiveness of the organizational structure and innovate

training. business models to transform the Company into

a platform where each department becomes

an independent profit center. This approach aims to fully decentralize objectives interests

To support the implementation of the Company's strategy and the development of a talent pipeline responsibilities and operations thereby stimulating the operational vitality of the organization. It

we have built a strategy-oriented training system that focuses on converting training outcomes into encourages employees to deeply engage in business operations and take on profit responsibilities

organizational efficiency. During the reporting period we have efficiently advanced and completed several promoting a culture where all staff become business operators.key initiatives including the tiered and categorized development plans external training programs for

managers executive elite seminars the establishment of a standardized new employee training system

and the development of supporting teaching materials. This has enabled precise alignment between

talent development and business growth.Creating a Harmonious Community 60 Creating a Harmonious Community 61

Senior Management Elite Classroom Zhonggu Logistics has thoroughly considered the growth patterns and development needs of its employees

and has designed an internal position hierarchy system and career development paths that align with the

Company's strategic development requirements. We actively advocate for employees to achieve vertical

To systematically consolidate the management

wisdom and practical experience of the senior promotion within their respective sequences and encourage horizontal mobility across sequences. This

executive team Zhonggu Logistics has focused approach broadens the career growth paths for employees and also lays a solid foundation of talent for the

on developing the “Elite Classroom”series Company's rapid expansion.of training programs this year. The aim is to

build an internal knowledge-sharing platform

and promote innovation and optimization of the internal training Graduate Supervisor Senior Assistant Deputy Department

system. The program features senior managers from various centers and Supervisor Manager Manager Manager

Center Head

regions as lecturers who conduct in-depth sharing sessions around core

management topics such as strategic decision-making and leadership Headquarters Functional Management Sequence

enhancement. During the reporting period a total of 13 sessions wereheld covering practical themes like “How to Improve Logical ThinkingSkills” and “Communication and Negotiation Techniques” with over 4000 participants in total. Graduate Supervisor Senior Deputy Functional Regional Senior Supervisor Manager Department Manager Manager

Through the continuous operation of the Elite Classroom the Company has successfully achieved

systematic accumulation and inheritance of management experience significantly enhancing the Regional Functional Management Sequence

strategic thinking abilities leadership levels and innovative awareness of management personnel

thus injecting sustained momentum into organizational capability building.Graduate Supervisor Senior Supervisor Office Director Regional Senior

Manager

New Employee Training Materials

Regional Port Business Sequence

In 2024 we successfully compiled a unified training material

suitable for all newly hired employees systematically and modularly

organizing the basic knowledge and processes for each position Senior Developer

with the aim of standardizing training criteria. This set of materials

consists of 7 volumes covering the theoretical knowledge and

operational procedures for 6 major types of positions: route Architect Senior

operations finance and business marketing multimodal transport Architect

mode route management and container management. It also Junior Intermediate Senior

includes content on organizational and cultural development helping new employees quickly IT Junior

become familiar with their roles and improving the efficiency of onboarding. Management IT Director

Indicator Unit 2024 2023 Changes Product Category

Total training input RMB10000 295 290 2%

Information Technology Sequence

Total number of trainees Person times 234 / /

Average number of hours of training

peremployee Hour 51.15 44.28 15.51% Caring for Employees

Average training Male Hour 50.85 44.50 14.28%

hours completed per

employee by gender Female Hour 52.15 43.62 19.55%

Zhonggu Logistics has consistently placed employee care at the core of its corporate culture development

Top-level Hour 56.09 48.00 16.86% establishing a comprehensive employee care ecosystem that continuously strengthens organizational cohesion. management Our commitment manifests through multiple dimensions: optimizing employee benefits and compensation

Average training systems developing transparent communication channels enhancing occupational safety and security

hours completed per Mid-level frameworks and organizing diverse cultural and sports initiatives. These concerted efforts systematically nurture

employee by rank management Hour 49.04 46.00 6.61% employees’ sense of belonging workplace fulfillment and overall satisfaction ultimately cultivating a human-

centric corporate environment that values warmth and professional excellence.Rank & file Hour 51.13 43.96 16.32%Creating a Harmonious Community 62 Creating a Harmonious Community 63

Improving Compensation Mechanism Mutual Assistance Between Employees

Zhonggu Logistics consistently regards the construction of a compensation system as a core component of its Zhonggu Logistics is always ready to help employees

talent strategy. By continuously optimizing the compensation and benefits system we ensure that employees to resolve their difficulties in production and life.receive fair treatment that is competitive in the market. Based on industry benchmarking and market research Through the Zhonggu Care Fund the Company

we have established a compensation incentive mechanism oriented towards capability and performance provides comprehensive support for employees and

contributions effectively stimulating employee potential and innovative vitality. This has helped the organization their families especially in times of emergencies and

attract and retain a large number of outstanding talents. Specifically we have taken the following systematic significant difficulties offering timely assistance. During 32 instances of 1 instance of

measures: the reporting period the fund expended a total of 59000 wedding gifts major illness

RMB benefiting 56 employees. This included 32 instances assistance

Performance Assessment and Compensation Linkage of wedding gifts 20 instances of childbirth subsidies 1

instance of major illness assistance and 3 instances of

*Zhonggu Logistics has established a linkage mechanism between performance assessment and condolences for the passing of a family member. This 20 instances

compensation incentives deeply advancing the construction of a market-oriented compensation initiative not only reflects the Company's deep care for its of childbirth 3 instances of

system. This fully stimulates employees' initiative and innovative potential achieving mutual employees’ lives but also demonstrates the Company’s condolences

empowerment of individual value and organizational development. subsidiessense of social responsibility. By combining material

Multidimensional Performance Assessment System support with emotional comfort we have effectively

enhanced employees’ sense of belonging and cohesion

*Zhonggu Logistics implements a multidimensional performance assessment system for employees fostering a warm and harmonious corporate culture. Donation Through the Zhonggu Care Fund in 2024

of different categories and positions. The compensation level of employees not only reflects the

value of their positions but is also closely linked to the achievement of individual performance and

business objectives ensuring the fairness and incentive nature of the compensation system.Long-term Incentive Plan Enriching Recreational and Sports Activities

*The Zhonggu Shipping Group regularly provides feedback and rewards for employees' Zhonggu Logistics consistently places employee welfare at the core of its operations continuously enhancing

contributions through long-term incentive plans. team cohesion and employee happiness through a variety of cultural and sports activities fostering a vibrant

corporate culture atmosphere.Emphasize Communication with Employees During the reporting period Zhonggu Logistics carried out a diverse range of cultural and sports activities centered on employee care and team building fully reflecting the Company's emphasis on employee welfare.We organized activities such as the Hui-Hang hiking team building a health weight loss competition and

badminton matches which not only strengthened team cohesion but also promoted a healthy lifestyle.During the reporting period Zhonggu Logistics established a two-way feedback mechanism to facilitate smooth Additionally in conjunction with significant holidays the Company held events like the International Women's

communication channels for employees. The Company introduced a performance feedback system that clearly Day recognition ceremony Mid-Autumn Garden Party and Thanksgiving themed activities. Through the

defines work objectives and evaluation criteria. Employees can regularly engage in performance assessments exchange of flowers gifts and service awards the Company conveyed its care and recognition for its employees.and feedback with their immediate supervisors to understand their performance and receive guidance for Furthermore activities such as a friendly basketball match with CICC Wealth further promoted communication

improvement. This enhances communication between management and staff and promotes work efficiency and and cooperation among employees. These activities not only enriched employees' leisure lives but also created

personal development. a positive corporate culture atmosphere enhancing employees' sense of belonging and happiness.In addition Zhonggu

Logistics regularly Direct Manager

conducts employee *Provides employees

Hui-Hang Hiking Team Building Activity

satisfaction surveys that with work objectives and

cover various dimensions evaluation criteria During the reporting period we organized and

such as compensation conducted a hiking team building activity on the Hui-

performance training Hang Ancient Path. The purpose of this event was to

and career development. enhance team cohesion and the spirit of cooperation

The survey results indicate Employee through outdoor hiking while also allowing

that the Company's employees to get close to nature and experience the

management level *Regularly conducts performance charm of outdoor sports. More than 150 employees

continues to improve and assessments and feedback with actively participated and the activity achieved good

employee happiness is on the direct manager team building results providing employees with an

the rise. unforgettable collective experience.Two-way Feedback MechanismCreating a Harmonious Community 64 Creating a Harmonious Community 65

"Zhonggu Logistics Women of Distinction & March 8th Red Flag Bearers"

Recognition Ceremony

On the occasion of International Women's Day to

honor the outstanding contributions made by female Health and

employees in the Company's development we held the

"Zhonggu Logistics Women of Distinction & March 8th

Red Flag Bearers" recognition ceremony on March 8th Safety

in the training room on the 18th floor. The Company

prepared flowers for each female employee at the

headquarters to express our festive greetings and Zhonggu Logistics consistently prioritizes the health and

sincere respect. safety of its employees strictly adhering to national laws and

regulations such as the Safety Production Law of the People's

Republic of China and the Law of the People's Republic

of China on the Prevention and Control of Occupational

First Health Weight Loss Competition Badminton Match Diseases . The Company ensures comprehensive protection

of employees' legal rights and interests. We have established

a number of internal safety management systems including

the General Principles which clarify safety management

objectives and provide detailed safety standards for the

operation of vessels ensuring that all operational procedures

meet the highest safety standards.We have established a comprehensive safety management system and regularly conduct safety training

and emergency drills to ensure that employees work in a safe and healthy environment thereby laying a

solid foundation for the sustainable development of the Company. During the reporting period we have

completed the annual review and certification of our occupational health management system.Garden Party Themed Event Zhonggu Logistics and CICC Wealth Joint Basketball Friendship Match

Crew Joint Drills

During the reporting period we carried out two planned ship-shore joint emergency drills as

scheduled to enhance team coordination and emergency response capabilities. On May 31st we

conducted a drill for vessel loss of control and emergency towing operations to test ship-shore

coordination and towing procedures. On November 22nd we held a drill for shore power failure

and man-overboard scenarios to evaluate emergency responses in complex situations. These

two drills reinforced emergency awareness optimized processes and laid the groundwork for

handling unexpected events ensuring the safe and stable operation of our vessels.Thanksgiving Themed Event Zhonggu Book ClubCreating a Harmonious Community 66 Creating a Harmonious Community 67

Crew Training Program Rural Revitalization

During the reporting period Zhonggu Logistics officially

launched the first phase of its onboard crew training and Welfare

program and by December ten successful sessions had

been conducted. The training content is comprehensive

and practical covering basic knowledge and skills Zhonggu Logistics is not only concerned with the development of the surrounding communities but also takes it as

related to firefighting and life-saving operations on ships its responsibility to give back to society. The Company actively engages in the national strategy of rural revitalization

key areas of current domestic and international ship and social welfare activities. Through various forms such as donations public welfare activities and consumption

inspections as well as the latest international conventions assistance the Company contributes to the all-around development of rural areas. At the same time we encourage

and regulations that have come into effect. In terms of our employees to participate in community public welfare activities to jointly create a harmonious and beautiful

training format we have adopted flexible and diverse social environment and convey positive energy.methods including on-site training organized during ship visits remote video training during ship

anchorages and routine training organized by the captain onboard ensuring the efficiency and

continuity of the training. Rural Revitalization

Zhonggu Logistics actively responds to the national rural revitalization strategy integrating the consolidation

We are continuously improving the mechanisms of our occupational health and safety system. The following and expansion of poverty alleviation achievements deeply into the Company's development strategy. During

table presents the occupational health and safety performance during the reporting period: the reporting period we fulfilled our corporate social responsibility and promoted the sustainable development

of the Company by actively participating in rural revitalization projects achieving a complementary balance

Indictor Unit 2024 2023 2022 Changes between social and commercial value. During the reporting period our total expenditure on rural revitalization amounted to 362048 RMB.Number of work-related deaths in

the past three years Person 0 0 0 - "Warming Hearts and Helping Villages" Activity

Days of work lost due to

occupational injuries Day 147 0 12 In the "Warming Hearts and Helping Villages" initiative organized

by the YuShu City Transportation Bureau Huo Xiaojie from

Days of work lost due to Days/ million the Northeast Regional Office of Zhonggu Logistics actively occupational injuries per RMB 0.0131 0 0.0008 participated. Together with relevant departments he went deep million RMB into Zhonghou Village Tuqiao Town to deliver rice flour oil

calendars and other New Year's gifts to 12 households that had

Work injury rate % 0.13 0 0.07 recently escaped poverty. This office responded positively to

the local government's call enthusiastically engaged in public

Number of work-related injuries Person 2 0 1 welfare activities and bridged the gap with the local community.Seizing this opportunity they widely promoted the public welfare

Number of work-related accidents No. 1 0 1 philosophy of Zhonggu Logistics effectively enhancing the

Company's social visibility.Number of Safety Drills No. 2942 / / /

Total Hours of Health and Safety

Training Hours 3528 / / / Zhonggu Logistics Purchases Agricultural Products to Support Rural Revitalization

Coverage Rate of Health and Safety % 100 / / / Against the backdrop of the rural revitalization strategy Training Zhonggu Logistics actively responds to national policies

by aiding rural economic development through the

Amount Invested in Work Injury RMB 228716 / / / procurement of agricultural products. In the winter of 2024 Insurance the Company purchased approximately 9000 kilograms of

Coverage Rate of Work Injury high-quality apples from Shandong and 1200 servings of

Insurance Personnel % 100 / / / Gu Huai steamed buns. These products were not only used to express care and gratitude to employees customers and

Amount Invested in Safety partners but also demonstrated the Company’s support

Production Liability Insurance RMB 1576268 / / / for rural revitalization. By doing so Zhonggu Logistics has not only enhanced its social image but also contributed to

Coverage Rate of Safety Production the economic development of rural areas.Liability Insurance Personnel % 41 / / /Creating a Harmonious Community 68 Creating a Harmonious Community 69

Public Welfare

Zhonggu Logistics consistently upholds a passionate commitment to giving back to society and actively fulfills its

social responsibilities. The Company continues to increase its investment in community welfare and volunteer

services working hand in hand with communities to build a better future fully demonstrating the noble

sentiment of enterprises in contributing to society and promoting the development of public welfare endeavors.During the reporting period a total of 774 employees participated in social welfare activities contributing Public Welfare Book Charity Auction Public Blood Donation

a combined total of 3797 volunteer service hours with community investment and public welfare activity

expenditures amounting to 46756 RMB.Community "Clean Home" Public Welfare Volunteer Activity

Volunteers from the Southeast Region of Zhonggu

Logistics joined hands with the Xin'gang Community

to actively participate in the "Clean Home" public

welfare volunteer activity. On the afternoon of the

event the volunteers armed with trash bags and

grabbers worked in groups to meticulously search

for and thoroughly clean hidden areas of dirt giving

the community a fresh new look. Headquarters Party Members' Book Charity "Protecting the Ocean Together We Act"

Auction Themed Party Day

"Visiting Qingdao West Coast Special Education Center" Public Welfare Activity

Under the banner of "Zhonggu Public Welfare" we

extended warmth to the children of the Huangdao

District Special Education School conveying societal

care through our actions and encouraging them to face

life with an optimistic and positive attitude embracing

the beautiful world. At the same time the Company

actively participated in the "Hand in Hand to Care for

Children with Disabilities Heart to Heart to Protect

the Flowers of Our Motherland" initiative focusing on

special groups and contributing Zhonggu Logistics’

strength to the social welfare cause. "Sanitation Workers' Day" Public "Protecting the Beautiful Earth Zhonggu

Welfare Activity Logistics in Action" activity

Nursing Home Public Welfare Activity

To promote the spirit of Lei Feng and leverage the

exemplary and leading role of young party members

in order to better serve the elderly in the community

employees of Zhonggu Logistics will visit the nursinghome to carry out the “Learn from Lei Feng MakeDumplings Deliver Warmth” volunteer service

activity. Through practical actions they will deliver

care and affection to the elderly conveying warmth

and concern.Compliance in Operation 70 Compliance in Operation 71

Corporate Governance

Compliance in Zhonggu Logistics strictly adheres to the requirements of laws and regulations including the Company Law of the People's Republic of China the Code of Corporate Governance of Listed Companies the Guidelines for Introducing

Independent Directors to the Board of Directors of Listed Companies the Rules for the Shareholders' Meetings

Operation of Listed Companies and the Guidelines for Articles of Association of Listed Companies continuously improving corporate governance and enhancing the level of standardized operation.Zhonggu Logistics always pursuing “safe efficient and green” development and Governance Structure

has established a governance structure with Zhonggu characteristics that aligns with

the features of the logistics industry supports the Company's strategic development Zhonggu Logistics attaches great importance to the diversity and professionalism of board members. the board

and adapts to its production and operation. We conduct strict internal management in consists of nine members including three independent non-executive directors accounting for 33% of the total

accordance with laws regulations and listing requirements continuously improve our and the proportion of female directors supervisors and senior executives is 27%. The board has established four

internal control systems and comprehensively build a risk management framework. specialized committees: the Strategy Committee the Compensation and Appraisal Committee the Nomination

We continuously enhance the standardization of our company's operations effectively Committee and the Audit Committee. In light with the Company's actual operational situation we integrate the

improve our corporate governance capabilities and achieve dual improvements in Company's actual operations identify specific needs emphasize maximizing the roles of the Board of Directors

operational quality and efficiency. and its committees ensure the fulfillment of functions and responsibilities by shareholders' meetings the

Board of Directors the Board of Supervisors and management thereby safeguarding the shared interests of

shareholders and the Company.Shareholders'

Meeting

Board of Directors Board of Supervisors

Strategy Compensation and Appraisal Nomination Committee Committee Committee

Audit Committee

We have implemented multiple initiatives to strengthen internal governance. Aligned with strategic development

needs the Company is systematically advancing governance efficiency enhancement initiatives. We continuously

refine the corporate governance structure by optimizing the setup of Board committees and decision-making

authorization mechanisms establishing a governance system with clear responsibilities and effective checks and

balances. Concurrently we have instituted a compliance management negative list and embedded compliance

review processes. Furthermore we have developed a three-tier risk control framework covering strategic

operational and supervisory levels. Building upon this foundation we designed cross-departmental joint

decision-making mechanisms to create a closed-loop management model which has significantly enhanced the

responsiveness to major decisions and the precision of resource allocation.Compliance in Operation 72 Compliance in Operation 73

Compliance Operations

During the reporting period we launched a month-long Integrity Promotion Month campaign to deepen anti-

Zhonggu Logistics strictly adheres to national laws and regulations such as The Company Law of the People's corruption efforts. Through educational programs and awareness initiatives the campaign aimed to strengthen

Republic of China industry standards and internal group policies. Through a compliant and efficient internal employees' commitment to integrity and ensure compliance across operations. All employees signed a Compliance

governance framework we support the Company's steady development. During the reporting period we conducted Pledge to affirm adherence to corporate policies and professional ethics. Additionally new hires were required to

dynamic monitoring and refined management of operational performance across key control metrics including but sign a Position-Specific Integrity Commitment as a solemn vow to uphold ethical standards in their roles.not limited to vessel load factor port idle time direct berthing rate cost control and asset management.Building on a robust compliance system Zhonggu Logistics provides regular compliance training to key directors

supervisors and senior management to ensure their understanding and adherence to relevant laws and policies. Business Ethics Training

Additionally when regulatory adjustments occur the Company promptly organizes policy analysis and delivers

targeted notifications and training to affected departments ensuring alignment with the latest legal requirements. To foster employees' awareness of integrity and self-discipline we prioritize the development of an integrity

corporate culture and have implemented practical and effective measures. The Company conducts specialized

During the reporting period we actively arranged for directors supervisors and senior executives to participate anti-corruption and integrity training for both new hires and mid-to-senior management aiming to elevate ethical

in training sessions on independent director system reforms organized by the Listed Companies Association of awareness across all staff and promote a culture of honesty and integrity. During training sessions real-world case

Shanghai aiming to elevate corporate governance standards. Our independent directors also attended specialized studies are integrated to illustrate the severe consequences of corruption and the profound significance of anti-

follow-up training at the Shanghai Stock Exchange to deepen their understanding of responsibilities and enhance corruption efforts helping employees recognize the critical importance of ethical conduct for both the Company

execution capabilities. Furthermore we distributed detailed guidelines and precautions on compliant trading and themselves. Additionally the Company has established a robust oversight system and incentive mechanisms

of company shares to directors supervisors and senior executives via email WeChat and other channels. This to encourage voluntary adherence to integrity standards collectively fostering a transparent and ethical workplace

proactive management strategy ensures all transactions comply with regulatory requirements effectively mitigating environment. During the reporting period the Company further solidified employees' understanding of compliance

potential violations. through an anti-corruption and integrity knowledge assessment. the test covered topics such as business operations

internal controls anti-corruption policies and legal regulations. A total of 1033 valid responses were collected with

an average score of 87.78 across the Company demonstrating strong employee grasp of integrity-related knowledge.Business Ethics During the reporting period our business ethics training covered all employees including the management.Specifically the total training hours for senior management mid-level management and frontline employees

reached 126 hours 318 hours and 2733 hours respectively.Based on the core values of "loyalty sincerity and practicality" Zhonggu Logistics actively reinforces the mechanism

of "dare not corrupt cannot corrupt and do not want to corrupt"ensuring the Company's operations are honest and

efficient. To strengthen the anti-corruption system we have formulated and continuously implemented the "Anti-

Corruption and Integrity Management Measures" and the"Accountability Management Measures for Dereliction of Specialized Business Ethics Training for Senior Management

Duty and Violations."

We have established the Zhonggu Logistics Anti-Corruption and Integrity Construction Leading Group with the the Company invited a prosecutor from the Hongkou District People's Procuratorate in

Company's chairman serving as the group leader board members as deputy group leaders and heads of various Shanghai to conduct a training session titled "Combating and Preventing Corruption

departments regions as well as wholly owned subsidiaries as members. Besides the Company has established an in Private Enterprises" for the senior management team. The training explained in an

internal and external reporting mechanism encouraging both personnel to actively report issues thereby promoting accessible manner the corruption risks faced by private enterprises and corresponding

the construction of a tighter and more efficient anti-corruption system. governance strategies significantly enhancing the leadership's awareness of integrity and

risk prevention capabilities. Following the training the Company organized all employees

Management Measures to study the content and produced an integrity-themed documentary. Through real-world case studies and in-depth analysis the documentary conveyed the critical importance of

We actively advance the development of a commercial ethics culture implementing diverse initiatives to enhance ethical conduct ensuring that integrity principles resonate deeply across the organization.ethical awareness across all employees. This commitment ensures the legitimacy and integrity of business practices

laying a solid ethical foundation for sustainable development. During the reporting period the Company conducted

a comprehensive review of employees and their relatives' holding positions in the Company or affiliated entities

to identify and mitigate potential conflicts of interest. This initiative not only strengthened transparency but also Public Screening of Integrity Awareness Documentary

provided data-driven insights for refining stricter compliance policies.As the corporate governance structure continues to optimize and internal oversight systems mature we rigorously To further strengthen employees' commitment to integrity Zhonggu Logistics produced

enforce post-termination audit procedures for departing senior management. These audits include thorough reviews an integrity awareness documentary. The film vividly showcased real cases and provided

of their economic responsibilities during their tenure serving as a deterrent to current executives and minimizing thorough analysis clearly communicating the profound significance of ethical practices to

risks thereby driving continuous improvement in management practices. all employees and embedding integrity into the corporate culture. The screening initiative

In business audits internal corruption remains a key focus area. We employ in-depth analysis of operational notably elevated employees' ethical awareness and reinforced the Company's compliance

workflows meticulous verification of financial records and employee interviews to identify potential risks and non- culture fostering a transparent and upright workplace environment. Moving forward

compliant activities safeguarding the healthy development of operations and the security of corporate assets. the Company will continue to prioritize integrity-building efforts by diversifying ethical

education programs and refining relevant systems. This will solidify the foundation for

sustainable development ensuring steady and long-term growth on a path of compliance

and integrity.Compliance in Operation 74 Compliance in Operation 75

Risk Management Management Measures

The Internal Control Department has proactively implemented initiatives to elevate organization-wide

awareness and execution capabilities driving deeper integration of internal controls and safeguarding the

Zhonggu Logistics actively optimizes risk assessment and early warning mechanisms strictly enforces Company's stable development.risk control procedures and advances the integration of risk governance systems across all operational

processes. As of the end of the reporting period the Company maintained 103 internal control policies During the reporting period the Company systematically advanced the construction of an internal control

with 29 revised or enhanced in 2024. defect remediation mechanism creating a full-cycle management loop of "plan review – process supervision

– outcome evaluation." A tiered supervision framework was implemented requiring responsible units to

Management Structure develop targeted rectification plans for expert review alongside digital progress tracking and regular reporting. The Internal Control Department dynamically consolidated remediation progress developed cross-level

visual dashboards and conducted root-cause analyses for delayed tasks. By strengthening process oversight

The Company established a Risk Prevention and Control Task Force led by the General Manager and and outcome integration the Company promoted systematic refinement of business workflows optimized

composed of heads from the Risk Control Center and other departments to institutionalize and systematize policy design and execution standards and achieved deeper alignment between management systems and

internal control operations. Regular internal control evaluations are conducted to inspect compliance across operational practices continuously enhancing control efficacy and organizational efficiency.departments. During the reporting period the Risk Control Center established an Internal Control Department

which operates with high independence to objectively and rigorously fulfill its duties reflecting the Company's Zhonggu Logistics has established a robust compliance management system including a department-specific

commitment to strengthening its internal control framework. The department's responsibilities extend legal and regulatory database to underpin compliant operations. Building on this foundation the Company

beyond designing and refining control systems to overseeing and reviewing policy implementation ensuring deepened the enforcement of internal controls by integrating control evaluations into performance assessment

operational compliance and effective risk mitigation. system. This approach heightened employee focus on compliance embedding control requirements into daily

operations and significantly strengthening risk prevention capabilities.Legal Department

Risk Management Training

Risk Control Zhonggu Logistics treats risk awareness as a strategic pillar for sustainable growth systematically building a

Center risk management education system that spans all roles and operational cycles. Through tiered and categorized

training programs a comprehensive competency framework has been developed: mandatory courses for new

employees reinforce professional ethics targeted training for key positions strengthens integrity standards

Internal Control and practical drills for business lines address industry-specific risks. Additionally the Company collaborates

Department with judicial authorities to deliver customized legal education establishing a knowledge-to-action conversion

Financial Center mechanism to continuously enhance risk identification and compliance decision-making capabilities. These

efforts lay a talent foundation for building a modern industry-leading risk control system in the shipping sector.General Manager Safety Center Integrity and Self-Discipline Training for New Employees

During the reporting period the Company organized a training event titled "New Employee

Training - Fasten the First Button of Your Career Practice Integrity and Self-Discipline"

for our new hires in 2024. The training was organized by the Internal Audit Department

Marketing Center and attended by nearly 100 new employees from the 2024 cohort. The training content

covered four main aspects: the responsibilities and roles of the audit department laws

regulations and company policies case studies and reporting mechanisms. The objective

of the training was to provide new employees with an in-depth understanding of the

Company's rules and regulations regarding integrity to help them grasp the Company's

Administration institutional requirements through the analysis of past cases to clarify employee behavior

Center norms and ultimately to cultivate a sense of integrity and self-discipline among new

employees.Risk Control Management StructureAppendix 76 Appendix 77

Index

Index to the Guidelines No. 14 of Shanghai Stock

Exchange for Self-Regulation of Listed Companies— GRI Index

Sustainability Report (Trial)

Instructions for use From January 1 to December 31 2024 Shanghai Zhonggu Logistics Co. Ltd. reported the information cited in this GRI index with reference to the GRI standard.Dimension Number Topic Article Chapter GRI 1 GRI 1: Basic 2021

1 Addressing Climate Change Articles 21 to 28 Tackling Climate Change

Disclosure

2 Pollutant Emissions Articles 30 Ecological Co-construction issue/item Title of disclosure Chapter

3 Waste Management Articles 31 Ecological Co-construction GRI 1: Basics 2021

GRI 2: General Disclosures 2021

4 Ecosystem and Biodiversity Conservation Articles 32 Low-carbon Sailing Organization and Reporting Practices

Environment 2-1 Organization details Zhonggu Logistics at a Glance

5 Environmental Compliance Management Articles 33 Low-carbon Sailing Ecological Co-construction

2-2 Entities included in the organization's sustainability reporting About the Report

6 Energy Utilization Articles 35 Low-carbon Sailing 2-3 Reporting period frequency and contact point About the Report

2-5 External guarantee About the Report

7 Water Resource Utilization Articles 36 Ecological Co-construction Employees and Activities

8 Circular Economy Articles 37 Ecological Co-construction 2-6 Activities value chains and other business relationships Double Materiality Assessment

2-7 Employees Diversity and Equity Talent

9 Rural Revitalization Articles 39 Rural Revitalization Development Caring for Employees

Governance

10 Social Contribution Articles 40 Public Welfare 2-9 Governance structure and composition Corporate Governance

11 Innovation Drive Articles 42 Digital Shipping Management 2-12 Supervisory role of the supreme governing body in management impact ESG Governance System

2-13 Delegation of responsibility for managing impacts ESG Governance System

12 Science and Technology Ethics Articles 43 Digital Shipping Management 2-14 Role of the highest governance body in sustainability reporting ESG Governance System

13 Supply Chain Security Articles 45 Strengthen Supply Chain Management 2-15 Conflicts of interest Double Materiality Assessment

Social 2-16 Communication of critical concerns Double Materiality Assessment

14 Equal Treatment of Small and Articles 46 Strengthen Supply Chain Management 2-17 Collective knowledge of the highest governing body ESG Governance SystemMedium-sized Enterprises Strategies Policies and Practices

2-22 Statement on sustainable development strategy Message from the Chairman

15 Product and Service Safety and Quality Articles 47 Building Excellence Service

Stakeholder Engagement

2-29 Stakeholder engagement approach Stakeholder communication

16 Data Security and Customer Privacy Protection Articles 48 Building Excellence Service GRI 3：General Disclosure 2021

3-1 Process for identifying substantive issues Double Materiality Assessment

17 Employees Articles 50 Creating a Harmonious Community 3-2 List of substantive issues Double Materiality Assessment

18 Due Diligence Articles 52 Corporate Governance 3-3 Management of substantive issues Double Materiality Assessment

GRI 201: Economic Performance 2016

Governance 19 Stakeholder Communication Articles 53 Stakeholders Communication 201-1 Direct economic value generated and distributed Key performance

related to

sustainable Anti-Commercial Bribery and Anti- GRI 205: Anti-corruption 2016

development 20 Corruption Articles 55 Business Ethics 205-1 Operations assessed for risks related to corruption Business ethics

205-2 Communication and training about anti-corruption policies and procedures Business ethics

21 Anti-Unfair Competition Articles 56 Business Ethics

205-3 Confirmed incidents of corruption and actions taken Business ethicsAppendix 78 Appendix 79

Environment

GRI 302: Energy 2016

302-1 Energy consumption within the organization Tackling climate change Performance Summary

302-3 Energy intensity Tackling climate change

302-4 Reduction of energy consumption Low-carbon sailing

GRI 303: Water Resources and Wastewater 2018 Environment

303-1 Interaction with water as a shared resource Ecological Co-construction

Issue Indicator Unit 2024

303-2 Management of water discharge-related impacts Ecological Co-construction

Gasoline kWh 1436680.23

303-3 Water withdrawal Ecological Co-construction

Diesel kWh 242131725.18

303-4 Water discharge Ecological Co-construction

Low sulfur fuel oil kWh 2806590130.45

303-5 Water consumption Ecological Co-construction

Lubricating oil kWh 25757866.83

GRI 305: Emission 2016

Energy consumption Total direct energy consumption kWh 3075916402.69

305-1 Direct (Scope 1) GHG emissions Tackling climate change

Electricity kWh 5062713.69

305-2 Energy indirect (Scope 2) GHG emissions Tackling climate change

Total indirect energy consumption kWh 5062713.69

305-4 GHG emissions intensity Tackling climate change

Total energy consumption kWh 3080979116.38

305-5 Reduction of GHG emissions Tackling climate change

Total energy intensity kWh/ million RMB 273664.12

305-7 Nitrogen oxides (NOx) sulfur oxides (SOx) and other significant air emissions Ecological Co-construction

Scope 1 GHG emissions Ton of CO2 equivalent 807147.24

GRI 306: Waste 2020

Scope 2 GHG emissions Ton of CO2 equivalent 2716.65

306-1 Waste generation and significant waste-related impacts Ecological Co-construction GHG Emissions Total GHG emissions Ton of CO2 equivalent 809863.89

306-2 Management of significant waste-related impacts Ecological Co-construction

Ton of CO2 equivalent/

306-3 Waste generated Ecological Co-construction GHG emissions intensity million RMB 71.94

306-5 Waste directed to disposal Ecological Co-construction Total water consumption Ton 96470.00

Society Water consumption intensity Ton/million RMB 8.57

GRI 401: Recruitment and Employment 2016 Water resources Freshwater consumption Ton 56532.00

401-1 New hires and employee turnover Diversity and Equality Total water recycling and reuse Ton 455.00

401-2 Benefits provided to full-time employees that are not provided to temporary or Water cycle and reuse rate % 0.74part-time employees Care for our employees

Total wastewater discharge Ton 16917.60

GRI 403: Occupational Health and Safety 2018 Wastewater

Wastewater discharge intensity Ton/million RMB 1.50

403-1 Occupational health and safety management system Care for our employees

Nitrogen oxides Ton 21005.81

403-2 Hazard identification risk assessment and incident investigation Care for our employees

Sulfur oxides Ton 2414.46

403-3 Occupational health service Care for our employees

Waste gas Suspended particles and particulate matters Ton 519.66

403-5 Worker training on occupational health and safety Care for our employees

Total waste gas emissions Ton 23939.93

403-6 Promotion of worker health Care for our employees

Waste gas emission intensity Ton/million RMB 2.13

403-7 Prevention and mitigation of occupational health and safety impacts directly linked by business relationships Care for our employees Total amount of hazardous waste Ton 1309.34

403-8 Workers covered by an occupational health and safety management system Care for our employees Intensity of hazardous waste Ton/million RMB 0.12Waste

403-9 Work-related injuries Care for our employees Total amount of non-hazardous waste Ton 418.00

403-10 Work-related health issues Care for our employees Intensity of non-hazardous waste Ton/million RMB 0.04

GRI 404: Training and Education 2016 Consumables Amount of paper used Ton 12.04

404-1 Average hours of training per year per employee Talent development Total investment in environmental protection Ten thousand RMB 698.25Investment in

404-2 Programs for upgrading employee skills and transition assistance programs Talent development environmental protection Proportion of total investment in environmental

protection to operating income % 0.06

GRI 405: Diversity and Equal Access 2016

405-1 Diversity of governing bodies and employees Diversity and Equality

GRI 406: Anti-Discrimination 2016 Society

406-1 Incidents of discrimination and corrective actions taken Diversity and Equality Issue Indicator Unit 2024

GRI 408: Child Labor 2016 Number of employees

408-1 Operations and suppliers at significant risk for incidents of child labor Diversity and Equality Total number of employees Number of employees Person 1539

GRI 409: Forced or Compulsory Labor 2016 Permanent employees Person 1532

409-1 Operations and suppliers at significant risk for incidents of forced or compulsory labor Diversity and Equality

By type of employment Dispatched labor Person 7

Part-time employees Person 1183

GRI 414: Social Assessment of Suppliers 2016 Male Person 349

By gender

414-1 New suppliers that were screened using social criteria Strengthening Supply Chain Management Female Person 55

GRI 418: Customer Privacy 2016 Top-level management Person 120

418-1 Substantiated complaints concerning breaches of customer privacy and losses of

By rank Mid-level management Person 1357

customer data Digital Shipping Transformation Rank & file Person 780Appendix 80 Appendix 81

30 and below Person 709 Male Hour 60160

By age 31-50 Person 43 Female Hour 18200

50 and above Person 1532 Total training hours of employees Top-level management Hour 3085

Chinese mainland Person 0 Mid-level management Hour 5885

By region

Hong Kong Macao and Taiwan Person 0 Rank & file Hour 69390

Employee Turnover Rate Average number of hours of Male Hour 50.85

Overall turnover rate Turnover rate % 12 training by gender Female Hour 52.15

Male % 11 Top-level management Hour 56.09

By gender

Female % 14 Average number of hours of training by rank Mid-level management Hour 49.04

30 and below % 18 Rank & file Hour 51.13

By age 31-50 % 5 Compensation and Revenue

50 and above % 13 Salary per capita RMB 244847.43

Compensation and revenue

Chinese mainland % 12 Income per capita RMB 7498004

By region Hong Kong Macao and Taiwan % 0 Supply Chain

Overseas % 0 Supplier Total number of suppliers No. 4423

Occupational Health and Safety China Mainland No. 4336

Work-related death Number of work-related deaths Person 0 By region Hong Kong Macao and Taiwan No. 36

Number of work-related deaths per million RMB Person/million RMB 0 Overseas No. 51

Days of work lost due to occupational injuries Day 147 Products and Services

Days of work lost due to occupational injuries

per million RMB Day/million RMB 0.0131 Recall

Number of incidents recalled for safety and

Work-related injuries health reasons

No. 0

Work injury rate % 0.13 Number of complaints received about products No. 65

Number of work-related injuries Person 2 and services

Number of work-related accidents No. 1 Handling rate of complaints received about % 100

Complaint products and services

Number of safety drills No. 2942 Number of customer complaints per million

Number of safety trainees Total Hours of Health and Safety Training Hour 3528 Chinese Yuan No./million RMB 0.0058

Coverage Rate of Health and Safety Training % 100 Customer satisfaction % 93

Investment Amount in Work-related Injury

Insurance RMB 228716

Intellectual Property

Patent Number of patent applications No. 0

Coverage Rate of Work-related Injury Insurance

Personnel % 100 Trademark Number of trademarks held No. 3

Safety production investment

Investment Amount in Work Safety Liability Software copyright No. 12

Insurance RMB 1576268 Copyright Number of software titles per million Chinese No./million RMB 0.0011

Coverage Rate of Work Safety Liability Insurance Yuan

Personnel % 41 R&D and Innovation

Development and Training Number of R&D employees Person 71

Total number of trainings Total number of trainings No. 234 R&D staff ratio % 4.6

Research and development

Total investment in employee training Ten thousand RMB 295 R&D investment Ten thousand RMB 1956.51

Employee training investment Employee training investment per million RMB Ten thousand RMB 0.0262 R&D investment as a percentage of revenue % 0.17

Average employee training and development Community Charity

investment Ten thousand RMB/person 0.19 Donations outside the community RMB 362048

Employee Training Coverage Total coverage % 100 Investment in community activities for public

Male Person 1183 good RMB 46756

Number of trainees by gender

Female Person 349 Total investment in public welfare RMB 408804

Male % 77 Public welfare Community public welfare investment per

Percentage of training by gender RMB/million in RMB 36.31

Female % 23 million Chinese Yuan

Top-level management Person 55 Employee volunteer hours Hour 3797

Number of trainees by rank Mid-level management Person 120 Employee volunteer hours per employee Hour 2.48

Rank & file Person 1357 Social contribution per share RMB 1.50

Top-level management % 3

Percentage of training by rank Mid-level management % 8

Rank & file % 89

Average number of hours of Average number of hours of training per

training per employee employee Hour 51.15Reporting Evaluation and Suggestions 82 83

Reporting Evaluation and

Suggestions

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