SF Holding

2024

Sustainability

ReportCONTENTS

About SF 2

SF Culture 3

Awards for Sustainable Development 4

ESG Ratings Performance 5

Annual Progress on UN Sustainable

Development Goals (UNSDGs) 6 01 02 03

Sustainability 8 Governance 18 Environment 34

Management Fortifying Sustainable Governance for Long- Pioneering Low-Carbon Logistics to Power a

Term Resilience Green Transformation

Declaration from the Board of Directors 10

ESG Governance 11 Standardize Corporate Governance 20 Creating Green Logistics 36

ESG Policy Statement 11 Strengthen Risk Control Management 22 Promoting Circular Economy 50

Stakeholder Engagement 12 Abiding by Business Ethics 25 Practice Green Operation 54

Materiality Assessment 13 Ensuring Information Security 30 Safeguarding Ecological Environments 60

Addressing Climate Change 63

0405

Social 74 Services 122 Appendices 142

Fostering a Responsible Logistics Ecosystem Empowering New-Quality Productivity

through Mutual Benefit and Symbiosis Through Digital Intelligence About the Report 142

Assurance Statement 145

Construction of Talent Team 76 Pioneering Intelligent Logistics Innovation 124

Policy List 147

Protecting Employees’ Rights and Interests 87 Empowering Enterprises Expanding Overseas 132

Key Performance Indicators 152

Stand Firm on the Frontline of Safety 98 Delivering Premium Services 134

Sustainability Report Content Index 165

Stable and Safe Production 101 Securing Safety Delivery 137

Building a Responsibility Value Chain 107 Driving Industry Synergy and Shared Progress 140

Sustaining Commitments to Social Wellbeing 1122 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 3About SF“ SF Holding is the largest integrated logistics SF Cultureservice provider in China and Asia and the 1 SF culture represents the unique spiritual wealth and material forms that have been developed by SF through its production fourth largest in the world. operation and management activities. At its core are the Company’s vision core values SF spirit and three key conceptsrelated to business management management practices and talent management. These elements collectively embody theFocusing on its logistics ecosystem SF has continua”lly enhanced its portfolio of product fundamental characteristics of SF’s corporate personality and serve as the soul of the Company’s survival competition and service capabilities and has expanded to cover time-definite express economy and sustainable development.express freight cold chain and pharmaceutical logistics intra-city on-demand delivery

international express international cargo and freight forwarding and supply chain to

provide customers with domestic and international end-to-end one-stop integrated logistics

services. Meanwhile leveraging its leading technology and research and development

capabilities the Company is committed in building a digitalized supply chain ecosystem Become a globally respected

empowering clients with technology to create secure and efficient digital supply chain Corporate and leading provider of digital

systems. SF aspires to be the well-respected and the world’s leading digital intelligence

A leading enterprise in the logistics Vision intelligent logistics solutionslogistics solution provider.industry in China and Asia and has

The Company has adhered to sustainable and healthy development through visionary and

ranked 415th in the Fortune forward-looking strategic planning. For the past 32 years the Company has accurately Customer First Professional and

Global 500 list seized opportunities to expand its scale maintain industry leadership and has become Dedicated Service Spiritthe leading logistics company in China and Asia. The Company was ranked 415th on Integrity as the Guiding Principle Core Values SF Spirit Self-Critical Learning Spirit

the Fortune Global 500. The Company’s flagship product time-definite express has Love-oriented

dominant market leadership in China and through leveraging the network resources and Pioneering Innovation Spirit

capabilities for its time-definite express the Company has rapidly and efficiently expanded

into new logistics service sub-segments covering from small parcels to bulk and heavy

cargoes from standardized express delivery to customized supply chain services and

from China to Asia and further to the world. The Company is the market leader in China1 Business philosophy Management

across five logistics sub-segments including express freight cold chain intra-city on- philosophy Employment philosophy

demand delivery2 and supply chain3 and the market leader in Asia1 across four logistics

sub-segments including express freight intra-city on-demand delivery2 and international

business4 in Asia.SF Cultural Framework Model

Looking ahead the Company is committed to becoming the leading global logistics

company connecting Asia and the world. While continuously solidifying its leadership

position in the Chinese market the Company continues to expand its market influence Corporate Vision

across Asia and globally rapidly replicate its proven domestic know-how to overseas

networks. Leveraging its well-recognized brand leading cost advantages and integrated Become a globally respected and leading provider of digital intelligent logistics solutions

logistics service capabilities the Company expands the international market drives the

sustainable and healthy growth of business so as to become the go-to logistics partner

of global business customers and retail customers to foster shared-growth and create

enduring value together. Core Values

Extensive Scale Leadership1 Premium Brand

Customer needs are the “source of innovation” for the company which strives to deliver

Customer First products and services that exceed customer expectations.No. 1 in Asia Integrity as the Integrity as the guiding principle is the company’s “foundation for enduring success” serving

Largest in Asia Express LTL Freight Intra- Guiding Principle as both a moral standard and a business strategy.city On-demand Delivery2

International Business4 No. 1 Love-Oriented Being love-oriented is the company’s “source of value creation” and we must consistently

enhance the employee experience.Customer Satisfaction for express

services in China

No. 1 in China 15 years in a row SF Spirit

4th Largest Globally

1 Express LTL Freight Cold chain Integrated logistics service provider Professional and Dedicated Service SpiritIntra-city On-demand Delivery2

Supply chain3 Pursue professionalism maintain focus and deliver warm high-quality and value-driven services to customers.Self-Critical Learning Spirit

Address all issues by first examining one's own shortcomings take responsibility without shirking face challenges head-

on continuously engage in self-reflection and correction and achieve personal growth.

1 According to Frost & Sullivan Report in terms of revenue in 2023

2 Pioneering Innovation Spirit Among third-party intra-city on-demand delivery service providers

3 Among non-state-owned independent third-party supply chain solution providers Proactively embrace change dare to innovate and break through and avoid being confined to old models.

4 Among the integrated logistics service providers in Asia4 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 5

Awards for Sustainable Development ESG Ratings Performance

International ESG Ratings

Fortune Brand Finance Forbes

2024 Fortune Global 500 (listed for 3 Top 500 Most Valuable Brands in

consecutive years) 2024 (listed for 5 consecutive years)

2024 Fortune Most Admired Top 10 Most Valuable Logistics MSCI rating of BBB for three

Chinese Companies (listed for 8 Brands in 2024 (listed for 6 consecutive years (2022-2024)

consecutive years) consecutive years) 2024 China ESG 50

2024 China ESG Influential Listing Top 10 Logistics Brands by

(listed for 3 consecutive years) Sustainability Perceptions Value

in 2024

CDP Climate Change Questionnaire

Rating B for three consecutive years

State Post Bureau China Association for Public Companies China Communications and (2022-2024)Transportation Association

Express delivery service ranks Best Practices for Sustainability

first in public satisfaction in the of Listed Companies in 2024

first three quarters5 of 2024 (3 consecutive years) Typical Cases of China’s

No. 1 in express delivery service Best Practices for Board of Green Logistics ESG

satisfaction Practice Pioneers for 2023- in 2023 (15 consecutive Directors of Listed Companies in Sustainalytics’ latest ESG Risk Rating2024

years) 2024 (2 consecutive years) is “Low Risk”

Sina Finance Securities Market Weekly Securities Star

2024 Most Socially Included in the FTSE ESG Index series

Best ESG-Managed Listed Responsible Listed for four consecutive years (2021-2024)

2024 China ESG “Golden Companies in 2024 CompanyResponsibility Award” – Best 2024 ESG “Golden Dawn 2024 ESG New BenchmarkCorporate Governance (G) Corporate Governance Award” Enterprise AwardResponsibility Award 2024 ESG “Golden Dawn 2024 ESG Investment ValueLeadership Award” TOP 100 List

Gelonghui Philanthropist of China Hong Kong ESG Reporting

Domestic ESG Rating

Awards (HERA)

2024 China Charity Gala

The 6th Gelonghui Golden Award – “Institution of the Year” 2024 HERA ESG Reporting

Annual ESG Pioneer Award (SF Foundation) Excellence Award AAA AA A

CNI ESG Ratings CSI ESG Assessment China HuaZheng ESG

Ratings

A A A

Wind ESG Ratings CCX ESG Ratings SynTao Green Financial

ESG Rating

5 As of the disclosure date of this report the 2024 Courier Service Public Satisfaction Survey data has not yet been released.6 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 7

Annual progress on UN Sustainable Development Goals (UNSDGs)

1 The SF Lotus Education Aid Program has covered 67 counties (cities districts) in 18 provinces Successfully completed the batch replacement of about 47 million “Double E” packaging bags in Beijing promoting the large-scale (autonomous regions municipalities) across the country funded a total of 41918 students in implementation of circular economy. 11

need and distributed scholarships and grants of RMB260 million.Smart recycling bins have been placed in 15 operation sites in Shenzhen and a total of 3905 kg of waste materials have been recycled.RMB481 million 24259 Issued the SF Supplier Code of Conduct incorporating ESG requirements such as business ethics safety and occupational health labor The SF Care Program has invested a total of to help seriously ill children

3 and orphans in distress and provide humanistic care services to 40806 children families and and human rights and environmental protection into the terms of supplier contracts and regularly reviewing supplier performance.

medical staffs. Designed and published the Supplier Sustainability Survey Questionnaire to continuously advance environmental and social

Provided emergency support for typhoon relief in Hainan and earthquake relief in Xizang responsibility practices throughout the supply chain.leveraging our transportation resource advantages to swiftly deliver essential and relief

supplies to the disaster areas. Evaluated 1422 key suppliers conducted on-site audits of over 1392 suppliers with an audit pass rate of 91.3%.Provide approximately 9000 female employees with free health screenings for cervical and

breast cancer. Through packaging reduction measures reduced approximately 42000 tons of paper and 155000 tons of plastic

achieving a carbon emission reduction of about 192000 tons. 12

The SF Liangshan Charity Class Program funded 234 students in distress across 4 classes Deployed 19.18 million recyclable packaging containers with over 1 billion cycles reducing carbon emissions by

4 throughout the year. To date a total of 25 Love Classes has been established providing support around 472000 tons.

to 1410 children and girls in distress.Give priority to purchasing energy-saving water-saving and material-saving environmentally friendly

products and services to reduce resource consumption and environmental pollution and to promote the

5 There are 2 female directors on the board of directors accounting for 28.6% implementation of the green procurement concept.

More than 40000 new energy vehicles have been placed in service with a service 6

7 Carbon Target White Paper set out the commitment to achieve a 55% improvement in carbon coverage of 253 cities. efficiency by 2030 compared to 2021 and a 70% reduction in the carbon footprint of each parcel 13

First commercial trial flight of a domestic all-cargo aircraft using Sustainable Aviation compared to 2021.Fuel (SAF). In 2024 SF achieved a carbon efficiency of7 41.2 tCO2e/million revenue representing a 15.2%

Constructed rooftop photovoltaic power stations in 24 industrial parks with over 111 improvement compared to the carbon target baseline year (2021). And the carbon footprint per parcel

MW total installed capacity. Annual renewable energy generation exceeds 70 million was 709.9 gCO2e a decrease of 17.5% compared to the carbon target baseline year (2021).kWh and clean energy usage surpasses 42 million kWh.By advancing low-carbon transportation creating green industrial parks developing sustainable

packaging and exploring green technology applications SF reduced greenhouse gas emissions

Comply with international human rights and labor standards implement the ten by 2972306 tCO e in 2024.

8 principles of the United Nations Global Compact 2 and integrate human rights

protection into the entire business operation process.Formulate the Statement on Employees Rights and Protection to implement the More than 1647 acres of carbon-neutral forests have been planted in Hebei and Sichuan with

requirements of eight international conventions including equal pay for equal work a total of more than 1 million trees planted. It is expected to absorb more than 200000 tons of 15

prohibition of child labor elimination of employment discrimination prohibition of carbon dioxide in the future growth process

forced labor and occupational safety and health.Launched the “Special Conservation Project of Biodiversity of White-lipped Deer” in the

SF’s agricultural supply network spans over 2800 county-level cities nationwide Nianlong Provincial Nature Reserve in Ganzi Prefecture Sichuan Province

covering over 5500 fresh product varieties.

6.3 million tons of specialty agricultural products were transported throughout the year

projected to generate over RMB100 billion rural income. The Board has three independent non-executive directors with different industry backgrounds

representing more than one-third of the Board members. 16

Investment in science and technology R&D amounted to RMB3.09 billion Formulate and publish SF Code of Business Conduct Statement on Anti-Corruption and

9

4180 patents in force or pending with invention patents accounting for 61.5% of the total Statement of Conflict of Interest.

A finalist for the 2025 Franz Erdmann Prize – often referred to as the “Nobel Prize” of industrial In the past three years the Company’s internal operation premises audit (including business ethics audit)

engineering – and the sole Chinese representative in the final stage coverage rate was 100%.The signing rate of suppliers’ the Integrity Agreement reached 100%.Respect cultural differences in different regions strictly prohibit any form of discrimination

10 and are committed to creating a diverse equal and inclusive workplace environment for

employees worldwide. Joined the Universal Postal Union Consultative Council (UPUCC) becoming a key participant in policy formulation and rule

discussions in the global postal sector 17

15.1% of female workforce; 5.8% of ethnic minority workforce

Joined the Global Sustainable Transport Innovation Alliance (GSTIA) to collaboratively build an international platform for sustainable

transport innovation and cooperation with fellow members

As a co-founder of the China Logistics ESG Synergy Alliance we collaborate with upstream and downstream enterprises in the

industry chain to jointly explore and establish ESG standards and practice paths with Chinese logistics characteristics

6 Since KLN (Kerry Logistics Network Limited which is currently in the process of changing its name to KLN Logistics Group Limited)

has already formulated and announced its carbon targets and there are differences in business models between SF and KLN this

long-term target does not include KLN. KLN is a company listed on the Main Board of the Hong Kong Stock Exchange (Stock Code:

0636.HK) and is a holding subsidiary of the Company.

7 The carbon efficiency data presented here pertains solely to SF excluding KLN.8 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 9

Sustainability

Management

SF is committed to integrating corporate value with social value

nurturing a vision to drive sustainable industry development and actively

exploring the path of corporate sustainability. SF continuously improves

its sustainable development management system actively integrating ESG

principles into every aspect of its value chain enhancing its sustainable

development capabilities and business resilience and achieving long-term

value creation.Declaration from the Board of Directors

ESG Governance

ESG Policy Statement

Stakeholder Engagement

Materiality Assessment 0110 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 11

Declaration from the Board of Directors ESG Governance

The Board of Directors and all directors solemnly declare that the contents of this report are true accurate and complete SF integrates ESG principles into its corporate development strategy establishing a scientific and professional ESG

without any false records misleading statements or significant omissions. The Board also makes the following statements management system and a clear and transparent ESG governance structure. Meanwhile it comprehensively implements

regarding its ESG supervision and management work. the ESG-related strategies to support the sustainable development of the Company’s business.ESG Management Framework

Board of Directors

The Board closely monitors major global ESG trends and changes in the domestic and international macroeconomic

situation. It actively communicates with stakeholders and in line with the Company's current strategic plan accurately

identifies ESG-related risks and opportunities. The Board updates its ESG management approach when necessary to

ensure that SF's ESG philosophy remains aligned with evolving standards. Audit Remuneration and Strategy Committee Nomination Risk Management

Committee Appraisal Committee Oversight responsibilities for Committee Committee

sustainable development

ESG Risk Management

The Board places a high priority on the management of ESG-related risks actively engages with stakeholders to Strategy Committee of Determine the strategic objectives strategies and focuses relevant to sustainability

understand their concerns and systematically evaluates analyzes and prioritizes ESG issues to identify relevant risks the Board of Directors supervise and guide the implementation of ESG work and ensure that ESG

and opportunities. Management policies and strategies are reviewed and updated as necessary to align with evolving governance is integrated into the Company’s strategic development.ESG standards and best practices. SF has integrated ESG-related risks including climate change into its corporate Decision-

risk assessment framework. The Company conducts regular risk identification and assessment exercises and develops making Supervision & Periodic guidance reporting

and implements corresponding risk mitigation measures to ensure effective management of these risks. For a detailed supervision

discussion on risk management and internal control please refer to section "Governance Chapter: Strengthen Risk Composed of the Chief Strategy Officer (CSO) Chief Financial Officer (CFO) Chief

Control Management" in this report. For specific information on climate change risk management please refer to section Sustainability Operating Officer (COO) and Chief Human Resources Officer (CHO) the Group is

"Environment Chapter: Addressing Climate Change". Leadership Group responsible for setting sustainability goals in line with the Company’s sustainability

strategies and development situations and reviewing the progress regularly.Overall Daily

planning reporting

ESG Goal Setting and Progress Review

Composed of representatives of the Office of the Board of Directors various functional

departments BGs (Business Group) and BUs (Business Unit) related to sustainable

The Board of Directors is responsible for overseeing and managing the Company's sustainable development initiatives. Daily Sustainable Development development the Group is responsible for the overall implementation and promotion of

It sets strategic objectives defines key focus areas and determines the direction for core sustainable development management Working Group ESG-related work accelerating the implementation of the Group’s goals in each

activities. The Board also supervises and guides the implementation of ESG initiatives to ensure that ESG governance business unit and functional system and gradually promoting the normalization of

is fully integrated into the Company's strategic development. Members of the Sustainability Leadership Group which is sustainable development governance.under the Board's Strategy Committee have their remuneration linked to ESG performance. Going forward the Board Coordination in

will continue to enhance the Company's ESG management framework. This includes regularly reviewing progress implementation & Daily promotion reporting

against ESG targets actively addressing the concerns of stakeholders and continuously improving the overall ESG

governance levels. Business and Functional Implement ESG-related specific work in accordance with the established management

Implementation Departments indicators and mechanisms and regularly report to the Sustainable Development Working Group.ESG Policy Statement

In 2024 SF enhanced its ESG policy framework and introduced several new sustainability policies.Dimension Policy

SF Code of Business Conduct

Statement on Anti-Corruption

Governance

Statement of Conflict of Interest

Board Diversity Policy

Statement on Employees Rights and Protection

Society

SF Supplier Code of Conduct

Environment Environmental Policy12 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 13

Stakeholder Engagement Materiality Assessment

SF places a high priority on stakeholder engagement establishing diversified and efficient communication channels tailored Materiality management serves as the foundation and core for the Company to identify and evaluate ESG risks impacts

to the priorities of each stakeholder group. These channels ensure that nine key stakeholder groups including regulators and opportunities and to formulate ESG strategic plans in a scientific manner. It is essential for advancing sustainable

customers employees investors and value chain partners receive timely and accurate information on an ongoing development initiatives. To review objectives commitments policies management strategies practices and performance

basis thereby normalizing and enhancing the transparency of communications. Additionally SF integrates stakeholder related to sustainable development and to address stakeholder concerns regarding the Company’s sustainability efforts

expectations and concerns into its strategic planning and daily operations regularly reviewing the significance of various SF conducts an annual materiality assessment. This process combines questionnaire surveys and on-site interviews to

issues within the company’s operations and development. identify and update key ESG issues which are then fully integrated into the Company’s operational management. This

approach ensures continuous enhancement of the Company’s sustainable development management and practices.Main Channels for

Main Stakeholder Groups Main Concerns Communication Response Measures In 2024 SF implemented a double materiality assessment for the first time in accordance with the Self-Regulatory

Guidelines for Listed Companies No. 17 – Sustainability Report (Trial) and the Self-Regulatory Guidelines for Listed

Operate in full compliance with laws Companies No. 3 – Preparation of Sustainability Report issued by the Shenzhen Stock Exchange. This assessment

Compliance Operations Information Disclosure and regulations expanded upon the existing impact materiality evaluation by incorporating a financial perspective thereby conducting

Tax payment according to law Policy Implementation Prevent major safety accidents a comprehensive analysis of the materiality of ESG issues to the Company. The material issues identified through this

Regulatory Agencies Building Integrity Institutional inspection

Enhance local employment rates

Actively advance industrial poverty process are addressed within this report.alleviation

Double Materiality Assessment Process

Safety Delivery Deliver efficient reliable and rapid

Protection of Consumer Rights Customer Research logistics services

Customer Privacy Protection Customer Hotline Enhance the customer claims process Customer Satisfaction Survey Build a safety ecosystem

Customers Responsible Marketing In the process of reviewing and updating the list of ESG issues for the year the Company strictly adhered

to the provisions of the Self-Regulatory Guidelines for Listed Companies No. 17 – Sustainability Report

Protect employees' rights in accordance Step 1 (Trial) issued by the Shenzhen Stock Exchange. The Company comprehensively considered various factors

with the law Background including macroeconomic and policy environment ESG information disclosure standards international Protection of employees' rights

and interests Employee Communication Conduct a variety of training sustainability initiatives capital market ESG rating requirements industry best practices in ESG and the Channels programs actively Analysis and Issue Employee Development and Company’s development strategies. Based on these considerations the Company expanded the ESG

Training Employee satisfaction survey Refine the mechanisms for talent Identification issue list by adding nine new issues to the 17 identified in 2023 and optimized the wording of existing

Employees Employee Care

Employee Meeting promotion and compensation ESG issues. This resulted in a comprehensive list of 26 ESG issues which provides clear guidance and

Occupational health and safety Employee activities Strengthen occupational health and safety management direction for the Company’s sustainable development.Implement diverse employee benefits

Establish and refine a robust

decision-making and oversight

Return on investment General Meeting of Shareholders mechanism

Corporate Governance Announcements and Circulars Enhance risk management and control

Shareholders and ESG Management Investor Roadshow Ensure effective information disclosure Topic ESG Issues of 2024 Changes from the Previous Year

Investors Organize activities targeting different

types of shareholders Split “Emission management” into “Pollutant EmissionsAddressing Climate ChangeRegular Reporting Management” and “Waste Management”. Pollutant Emissions Management

Corporate Governance Operate in full compliance with laws Waste Management Added the topics of “Ecosystem and Biodiversity Conservation”

Compliance Risk Regular Board Meetings and regulations Ecosystem and Biodiversity Conservation “Environmental Compliance Management” and “Water ResourceDirectors Supervisors and Sustainable Operations Enhance risk management and Environmental Compliance Management Management”.Senior Management control Energy UtilizationEnvironment Revised the topic of “Energy Management and Carbon Emission Water Resource Management(Total: 9 Issues) Reduction” to “Energy Utilization”. Circular Economy

Sustainable Procurement Supplier Conference Conduct transparent procurement Green Packaging Split the topic of “Green Packaging and Resource Recycling” into

Integrity and Honesty Supplier Training practices “Circular Economy” and “Green Packaging”.Industry Cooperation Industry Communication Eliminate commercial bribery

Suppliers Rural Revitalization

Split “Rural revitalization charity and volunteering” into “RuralSocial Contribution Revitalization” and “Social Contribution”.Innovation-Driven Development Added “Innovation-Driven Development” “Ethics in Science andEthics in Science and Technology

Public Charity Provision of employmentTechnology” and “Equal Treatment of SMEs”.Engage through official platforms Supply Chain Security and Resilience

Community Development Industrial assistance such as websites Equal Treatment of Small and Medium- Revised the topic of “Product and Service Optimization” to “ProductRural Revitalization Volunteer service sized Enterprises (SMEs) and Service Safety and Quality”.Community Public welfare activities

Conduct regular visits

Social Product and Service Safety and Revised the topic of “Sustainable Supply Chains” to “Supply Chain(Total: 12 issues) Quality Assurance Security and Resilience”.Data Security and Customer PrivacyProtection Merged the topics of “Occupational Health and SafetyStrengthen Communication and Convening Summit Activities Participate in industry exchange Employee Management” “Employee Training and Development” “EmployeeCooperation Organ ize techno log ica l activities Diversity and Inclusion Welfare and Care” and “Respect and Guarantee of Human Rights”

Industry Standard Development communication Lead in the development of industry into the topic of “Employee”.Industry Associations standards

Safety Delivery and Transportation

Building a Green and Intelligent Reclassified the topic of “Data Security and Privacy Protection”

Industrial Chain from the Governance scope to the Social scope.Actively communicate through Due diligence

Information disclosure Information Disclosure official platforms such as websites Stakeholder Engagement Added the topics of “Due Diligence” and “Stakeholder Engagement”.Interact with the media Establish a communication

Media/the Public mechanism

Provide external communication Anti-Commercial Bribery and Anti- Split and revised the topic of “Anti-corruption and Business Ethics”

materials Corruption

Governance into “Anti-Commercial Bribery and Anti-Corruption” and “Anti-Unfair Anti-Unfair Competition(Total: 5 issues) Competition”. Corporate Governance14 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 15

2024 Double Materiality Analysis Matrix

The Company has established an assessment process to identify analyze and evaluate the potential

impacts risks and opportunities associated with ESG issues forming the basis for materiality

assessment.Step 2-1: Impact Materiality Assessment

Data Security and Customer Privacy

SF conducted a quantitative assessment of the environmental social and governance impacts of various Safety Delivery and ProtectionTransportation

ESG issues on a scale of 1 to 5 through questionnaire surveys inviting both internal and external

stakeholders to participate. Additionally SF engaged in interviews with key stakeholders to evaluate

the likelihood of the impacts associated with each ESG issue. The impact importance scores for each Innovation-Driven Development

ESG issue were determined through a comprehensive analysis of the quantitative assessment results Anti-Commercial Bribery and Anti-Corruption Corporate

and interview findings. Governance Employee Energy Utilization

Dimension 1: Impact Assessment Rural Circular

Revitalization Economy

Addressing Climate

SF conducted an impact assessment of the influence of ESG issue management through a questionnaire Change

survey consulting both internal and external stakeholders. The assessment dimensions comprehensively Social Contribution Product and Service Safety and

considered the scale scope and irreversibility of the impact. Quality Assurance Building a Green and Intelligent

Waste Management Industrial Chain

Step 2 Dimension 2: Likelihood Assessment

Pollutant Emissions

SF’s sustainable development working group in collaboration with external ESG experts assessed the Stakeholder Engagement Environmental Compliance ManagementManagement Anti-Unfair Competition

likelihood of the impacts associated with each ESG issue. Green Packaging

Diversity and Inclusion

Step 2-2: Financial Materiality Assessment

Under the guidance of external ESG experts the Company’s sustainable development working groupassessed the financial materiality of various ESG issues from two dimensions: “Continuity of ResourceUse” and “Dependence of Relationships”. Water Resource Management

Ethics in Science

Dimension 1: Continuity of Resource Use and Technology Supply Chain

Security and

From the perspective of ensuring the Company’s normal operations the likelihood and magnitude of the Resilience

Due diligence

impact of ESG issues on the Company’s profits were assessed over the short medium and long term.Dimension 2: Dependence of Relationships

In accordance with the objectives of maintaining good relationships with external stakeholders and Ecosystem and

supporting the Company’s long-term development the Company assessed the potential likelihood and Biodiversity Conservation

magnitude of the impact of the management of various ESG issues on its profitability during the reporting Equal Treatment of SMEs Environmental

period as well as over the short medium and long term. Issues

Social Issues

Moderate Importance Secondary Importance Material Importance Governance

Issues

Financial Materiality

Based on the assessment results from Step 2 the Company conducted a double materiality analysis to

determine the priority ranking of material issues for the year 2024 and developed a materiality matrix. In

evaluating the “Energy Utilization” issue the Company considered that the energy structure is undergoing

an accelerated transition and that the Company’s continuous operations are highly dependent on energy.Step 3 Both energy utilization and energy transition are anticipated to have a profound impact on the Company’s

long-term strategy operational performance and cost management. Step 4 The materiality matrix is reviewed and confirmed by the Strategy Committee of the Board of Directors Prioritization of and is subsequently reported and disclosed. The Company conducts an analysis and assessment of

Material Issues Regarding the “Climate Change Mitigation” issue the adoption of green and low-carbon logistics models presents significant opportunities for the Company. Accelerated transformation is necessary Analysis and the impacts risks and opportunities associated with the top five material issues based on their priority

to better capture market opportunities. Therefore in accordance with the Company’s defined threshold ranking. The management measures and practical outcomes related to these issues are highlighted in

for financial materiality both “Energy Utilization” and “Climate Change Mitigation” are deemed to be Reporting the relevant sections of this report.financially material.Material Importance Secondary Importance Moderate Importance

Impact Materiality16 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 17

Materiality

Priority Topic ESG Key Issue

Location in the Related Stakeholders

Value Chain Impacts Risks Opportunities

Disclosure Location of

Management and Practices

The energy consumption structure of the logistics Fluctuations in traditional fuel costs have intensified The Company continues to enhance its energy

industry directly impacts operating costs and the operational uncertainty while the pressure from utilization efficiency and reduce energy costs

progress of carbon emission reduction. Policy carbon emission reduction policies has driven up through applications such as new energy vehicles

pressures and oil price fluctuations drive the large- transition investment. The rapid iteration of new and photovoltaic power generation. Its green logistics

Energy Direct Regulatory Agencies

scale adoption of new energy technologies accelerate energy technologies demands ongoing capital capabilities will help expand customer bases in

1 Environment Customers the electrification of transport vehicles and enhance expenditure which somewhat increases the pressure low-carbon-sensitive sectors including high-end Utilization Operations Practice Green OperationSuppliers the layout of clean energy networks. These measures on operating costs. manufacturing and cross-border e-commerce.

collectively promote the industry's transition towards The first-mover advantage in carbon management

green and intensive development. technology enables the Company to lead the

development of industry green standards and drive

the shift of logistics service premiums from a focus

on timeliness to one on sustainability.The increasing frequency of extreme weather The increasing frequency of extreme weather events Investing in climate adaptive technologies can

events has heightened the risk of logistics network exacerbates the risk of logistics network disruptions. enhance supply chain resilience. Green logistics

disruptions and intensified the volatility of operating Hurricanes floods and other natural disasters solutions attract ESG investment funds and high-end

costs. Global carbon tariffs and emission reduction lead to fluctuations in transportation timeliness and customers. The deployment of new energy vehicles

targets are accelerating the low-carbon transition rising costs associated with infrastructure damage. and photovoltaic industrial parks helps seize the low-

Addressing Direct of transportation vehicles compelling the company Meanwhile carbon tariffs and mandatory emission carbon logistics niche converting climate governance

2 Environment Climate Operations CustomersEmployees to expedite the deployment of new energy vehicles reduction targets may necessitate increased capabilities into dual benefits in pricing power and Addressing Climate ChangeChange Downstream and clean energy infrastructure. Meanwhile climate investment in transforming green logistics models. market share.

resilience has emerged as a core indicator of supply

chain performance spurring innovation in low-carbon

last-mile delivery models. These developments

directly influence customer choices and drive the

iteration of industry service standards.In the digital transformation of the logistics The Company has accumulated a large amount Data security and privacy protection technologies can

industry data security and privacy protection have of data over many years of operation. Despite be leveraged as differentiated service advantages.a direct impact on the company's operational risk having established a series of data security control Benefiting from its leading position and substantial

management and the foundation of customer trust. mechanisms certain data security risks remain. As technological accumulation in the logistics industry

Data Security Regulatory Agencies With the tightening of global privacy regulations this customers' awareness of privacy protection grows the company has established a robust data

3 Social and Customer Direct Customers issue has become both a core element of corporate and regulatory requirements for the standardization of security management system and constructed a Privacy Operations Ensuring Information Securitycompetitiveness in meeting compliance challenges data processing activities become stricter companies comprehensive full-process data security protection

Protection Employees and a key driver of technological upgrades and holding personal information inevitably face privacy framework to safeguard customer privacy and data

ecological collaboration within the industry. The compliance risks. integrity.increasing prioritization of data security by customers

is compelling the industry to reshape its service

standards.Technological innovation in the logistics industry High investment in innovative technology R&D The Company places a strong emphasis on R&D

continues to reshape service efficiency and the value may intensify short-term financial pressure while investment accurately seizing the opportunities

chain. Breakthroughs and iterations in automation the uncertainty of the R&D cycle may heighten presented by technological innovation. By leveraging

Innovation- Direct and digital technologies are accelerating industry operational risks. Accelerated technology iteration technology to empower product and service

4 Social Driven Operations Customers differentiation and driving traditional logistics towards drives industry differentiation. If unable to form a innovation it enhances service quality and is Pioneering Intelligent Logistics

Development Downstream Employees an intelligent and low-carbon ecosystem. technology moat or if R&D outcomes do not support committed to delivering integrated digital supply chain Innovation

enhanced business capabilities this will directly affect solutions to customers. These efforts consolidate the

the company's market competitiveness and long-term Company's core competitive advantages and support

development. its long-term sustainable development.Safe delivery is the lifeblood of the logistics industry. Accidents involving safe delivery may lead to damage Safe delivery and transport capabilities have

The growing customer demand for parcel integrity to brand reputation and risks of legal accountability. emerged as the core of the company's differentiated

and controllability of the transport process has shifted The need for technological upgrades such as competition with growing demand for high-end

Safety Regulatory Agencies logistics services from basic efficiency competition intelligent monitoring and full-process temperature services such as high-insurance protection and Securing Safety Delivery

Social Delivery and Direct Employees5 to safety and trust as value anchors. Intelligent control will drive up the company's operating costs. pharmaceutical cold chains. Intelligent traceability

Transportation Operations Community monitoring and full traceability have become key Meanwhile the iteration of industry safety standards technology can generate data-driven value-added Driving Industry Synergy and Media/the Public to reshaping market entry barriers and are driving will add to the company's compliance pressure. services. Leading the development of industry safety Shared Progress

the creation of high-value-added safety-focused standards strengthens the company's ecosystem

customized services. influence and drives the shift of logistics value

towards safety and trust assets.18 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 1199

Governance

Fortifying Sustainable Governance for

Long-Term Resilience

"Honesty is the way" is the core value that SF has always adhered to. In

the face of the increasingly complex global regulatory environment SF

has always adhered to the principle of good faith and built a rigorous

corporate governance structure a comprehensive risk management

and control system strict business ethics standards and a complete

information security guarantee system to provide customers with safe

and reliable logistics While providing services we make every effort to

ensure the sustainable stable and healthy development of the enterprise.In order to realize the corporate vision of "becoming a respected world-

leading digital logistics solution service provider".Standardize Corporate Governance

Strengthen Risk Control Management

Abiding by Business Ethics

Ensuring Information Security 0220 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 21

Standardize Corporate Governance Performance of Duties by Special Committees of SF’s Board of Directors in 2024

Corporate Governance Review the overall development strategy and sustainable development strategy of the

Strategy Committee Company supervise and guide the implementation of ESG work and make recommendations

to the Board.SF has formulated the Articles of Association and other supporting internal control systems in strict compliance with the

requirements of the Company Law the Securities Law the Governance Code of Listed Companies and the relevant

listing rules of the Shenzhen Stock Exchange and the Stock Exchange of Hong Kong Limited (including the Corporate Remuneration and Recommend the remuneration of Directors and senior management to the Board to ensure

Governance Code) and other relevant laws and regulations so as to improve the Company’s internal corporate governance Appraisal Committee that the remuneration system serves the Company's business strategy and continuously adjust

structure improve the internal management system and standardize the Company’s behavior. The Company has defined it to support the Company's long-term development.the responsibilities and powers of decision-making execution and supervision and established a corporate governance

structure consisting of the general meeting of shareholders Board of Directors and Supervisory Committee forming a Guide the Company's overall risk management work evaluate the integrity of the risk

division of labor and restraint mechanism with clear powers and responsibilities and standardized operation. The Company’s Risk Management management system (including ESG risks) and issue opinions and assist the Board in

governance structure complies with the relevant requirements of domestic and overseas regulatory authorities on the Committee performing its risk management functions.governance of listed companies.Nomination Review the diversity policy for board members examine the structure and composition of

Committee the board assess the independence of independent non-executive directors and provide professional recommendations.General meeting of

shareholders

Auditing the Company's financial information and its disclosure supervising and evaluating

Audit Committee internal and external audit work and internal control system standardizing the Company's

operating behavior improving operation management and avoiding operational risks.Office of the Board Board of Supervisory

of Directors Directors Committee Diversity of the Board of Directors

In order to enhance the efficiency of the Board and maintain high standards of corporate governance the Company has

adopted a Board Diversity Policy which sets out the objectives and approaches to achieve and maintain diversity on the

Strategy Remuneration and Risk Management Nomination Audit Company’s Board. Pursuant to the Board Diversity Policy the Company seeks to achieve Board diversity by considering

Committee Appraisal Committee Committee Committee Committee a number of factors including but not limited to gender age cultural and educational background ethnicity professional

experience skills knowledge industry and regional experience and length of service. The implementation of this policy is

monitored by the Nomination Committee. The Nomination Committee shall report its findings and make recommendations

SF’s Governance Structure if any to the Board. The Company reviewed such policies and objectives from time to time and at least annually to ensure

that they are suitable for determining the optimal composition of the Board.General Meeting of Shareholders As of the end of 2024 the Company’s board of directors has a balanced allocation of experience and industry background.The directors of the Company have diverse educational backgrounds including economics law accounting business

The Company convenes and holds general meetings of shareholders in strict compliance with relevant laws and regulations administration as well as different industry backgrounds and professional qualifications. The Company has three

engages lawyers to attend the general meeting as observers and issue legal opinions on the holding and voting procedures independent non-executive directors with different industry backgrounds accounting for more than one-third of the board

of the general meeting and gives full respect to and protects the legitimate rights and interests of all shareholders and members. In addition the Company’s board of directors has two female directors representing 28.57 % of female directors.investors. The Company’s controlling shareholders strictly regulate their behaviors exercise their rights through the general The age range of directors ranges from their 30s to their 70s. After assessing the business model of the Company and

meeting and do not interfere with the Company’s management or decision-making directly or indirectly bypassing the the background and competence of the Directors the composition of the Board of the Company is in line with the Board

general meeting and the Board. In 2024 SF held 2 general meetings. Diversity Policy.Board of Directors Supervisory Committee

SF’s Board of Directors is composed of 7 directors of which 4 are executive directors and 3 are independent non-executive The number and composition of the Supervisory Committee of the Company comply with the requirements of laws and

directors. In 2024 the Company giving full play to the decision-making functions held a total of 8 board meetings to study regulations. In 2024 the Company held a total of 6 meetings of the Supervisory Committee. Each supervisor attended the

and make decisions on major matters such as share repurchase plans dividend plans and exercise of equity incentives Supervisory Committee seriously actively performed his duties supervised and expressed his opinions on the Company’s

giving full play to the decision-making guidance role of the board of directors. In strict accordance with the requirements major events related party transactions financial status etc.of the Company Law the Articles of Association the relevant listing rules of Shenzhen Stock Exchange and The Stock

Exchange of Hong Kong Limited and other relevant laws and regulations SF has meticulously conformed to the relevant

procedures of the board meeting and made timely disclosure of information after the meetings.Compliance Information Disclosure

The Board of Directors has established five special committees namely the Strategy Committee the Remuneration and

Appraisal Committee the Risk Management Committee the Nomination Committee and the Audit Committee. In 2024 SF has always honestly fulfilled its information disclosure obligations strictly complied with the regulations and requirements

these special committees held a total of 13 meetings. Each committee member carefully reviewed various issues actively of China Securities Regulatory Commission Hong Kong Securities and Futures Commission Shenzhen Stock Exchange

put forward relevant opinions and suggestions on corporate governance and business decisions supervised and promoted and The Stock Exchange of Hong Kong Limited on information disclosure as well as the relevant provisions of the

the implementation and implementation of the resolutions of the board of directors diligently and actively performed their Company’s Management System for Information Disclosure and further strengthened the collection feedback collation

duties and safeguarded the legitimate rights and interests of the Company and all shareholders. and review of material information to ensure the truthfulness accuracy completeness and timeliness of the information

disclosed.22 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 23

Strengthen Risk Control Management The Risk Control and Compliance Department of the Company is responsible for coordinating risk control and compliance-related management organizing the first person in charge of risk management to evaluate the probability

and impact of risks and monitoring the risk trend through models so as to determine the priority of risk management. At

the same time the identified existing and potential risks are summarized and reported to the Risk Committee. The Risk

SF has established a sound internal control and risk management system to strengthen and standardize the internal Committee conducts a comprehensive risk assessment of the Company once a year reviews the Company’s annual risk

management of the Company continuously improve the effects of risk prevention and control and promote the sustainable report and determines the Company’s risk appetite and risk response strategies.and healthy development of the Company. The Company also actively identifies and assesses environmental social and The internal audit department of the Company regularly reviews the risk management controls and procedures and reports

governance (ESG) risks in operation and development and clarifies the response strategies for such risks to effectively the audit results to the Audit Committee of the Group to ensure the comprehensiveness and accuracy of risk assessment

reduce operational risks. In 2024 SF passed the ISO 37301 Compliance Management System certification and the and the effectiveness of the risk management processes.Company’s management level in compliance management and risk control was recognized by external professional

evaluation. In order to effectively cope with the complex and ever-changing market environment and compliance challenges the

Company obtained the ISO 37301 Compliance Management System certification this year and introduced an external

professional perspective to comprehensively review the risk control and compliance management system of the Company

further confirming that the Company has high risk management capabilities and standards.Risk Management System

Risk Management Practices

SF has established the Risk Management Committee of the Board of Directors as a specialized risk management

organization which leads the Group’s risk control and compliance management direction and guides the Group’s risk control SF attaches great importance to risk management and builds a comprehensive and efficient risk management system

and compliance management work on behalf of the Board of Directors. The Risk Committee under the Risk Management through a series of measures to ensure the steady development of the Company. The Company actively promotes the

Committee of the Board of Directors is a professional decision-making body for overall management and control of risk Enhancement of digital risk management capabilities implements Loop-closing management of risk events to enhance the

control and compliance of the Company. It is led by the Chief Financial Officer (CFO) of the Company and is mainly accuracy of risk identification and response enhances employees’ risk awareness and management capabilities through

responsible for deliberating and making decisions on the construction system process authorization prevention and risk training and incorporates ESG risk management into the risk management framework to cope with the challenges

response of major risks of the Company. The Risk Committee reports to the Risk Management Committee of the Board brought by the complex external environment.of Directors on a quarterly and annual basis. The Risk Control and Compliance Office of the Company coordinates the

management of risk control and compliance; while the leader of each functional department BG (Business Group) BU Enhancement of Digital Risk Management Capability

(Business Unit) and region has the primary responsibility for the relevant risk control responsible for the formulation of

specific risk control measures and implementation rules as well as the identification and assessment of daily risks and SF has continued to strengthen its digital risk management capability by continuously upgrading the Company’s risk

the implementation of control measures. management system internal control and compliance system and compliance management system. Through continuous

iterative optimization of the systems SF has achieved the digitization of the entire chain from risk identification assessment

monitoring early warning response to loop closing thereby effectively improving the efficiency of risk identification and

management.Risk Management Committee of

the Board of Directors

Strategy Formulation Organization:

Strategy Formulation and Guidance Risk Management System

Risk Committee (CFO)

Responsible for monitoring risk management and control in priority areas of the Company and

managing risk events.The Company’s Risk Control and Overall Management Organization:

Compliance Office System Optimization and Control Internal Control and Compliance Platform

Responsible for conducting regular internal control inspections of the Company’s business

processes and supervising rectification.Unified administration Report

Unified operation Feedback

Assessment Optimization

Compliance Management System

The Company’s Functions Implementation Organization: Responsible for intelligently capturing and analyzing external regulatory requirements and public

BGs/BUs and Subsidiaries etc. Routine Management and Execution opinion information and monitoring the quality of internalization of external regulations.SF Risk Management Organization Structure

In order to further enhance the risk prevention and control capabilities of the Company’s overseas business in 2024

SF attaches great importance to risk management establishes and continuously optimizes a comprehensive and efficient overseas versions of the Company’s risk management system and compliance management system were added realizing

risk management system to ensure the steady development of the Company. The Company carries out risk identification online management of overseas risk events supporting the group to quickly coordinate and respond to risk events and

work every year. The functional leaders BG BU and regional leaders combined the internal and external environmental precipitating risk information to further enhance the ability to resist risks; At the same time it gradually integrates the laws and regulations of overseas countries and regions to provide integrated support for the collection precipitation analysis

conditions faced by the business identify internal management risks (including strategic operational financial market and sharing and active management of compliance information for overseas markets ensuring compliance operations and

legal compliance risks) and external environmental risks (including changes in macroeconomic environment impacts on escorting the steady expansion of overseas business. In addition a multi-dimensional risk board has been added to the

natural environment adjustments to national laws and regulations changes in industry regulatory policies and evolution risk management system to help business organizations comprehensively and clearly grasp the overall picture of risks

of social customs and concepts). and improve the accuracy and efficiency of risk management.24 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 25

Loop-Closing Management of Risk Events Abiding by Business Ethics

SF has established a sound risk event management system which realizes graded risk event management through risk

labels and strengthens the whole-process risk management of pre-event prevention in-event response and post-event

review so as to enhance the efficiency of risk event management and control. SF always adheres to compliant operations abides by business ethics and adopts a zero-tolerance attitude towards any

violation of business ethics. To ensure the effective implementation of business ethics and compliance management

the Board-level committee is responsible for supervising and reviewing important matters related to business ethics and

compliance management and ensuring the effectiveness of the Company’s internal control system. The Chief Financial

Pre-Event In-Event Post-Event Officer assists the Board in promoting compliance management such as anti-corruption anti-money laundering and

Prevention Response Review anti-unfair competition; The Chief Audit Officer is responsible for organizing internal audit monitoring and reviewing

internal corruption and other irregularities and reporting to the Audit Committee of the Board on a regular basis. Relying

Regularly carry out risk Respond with multiple Summarize the incident

assessment to understand departments to address wi th the re levant on this management system SF actively maintains a free and fair market environment solidly promotes the construction

the current situation of risk risk events according departments dig out of an integrity system and lays a solid foundation for building an integrity management ecology and achieving sustainable

management and control to local conditions and root causes promote the development.continuously optimize the minimize the negative departments to formulate

risk management and control impacts caused thereby. optimized solutions and

mechanism and reduce the continue to consolidate

probability of occurrence of the basic capabilities of

risk events from the source. risk event management. Code of Business Ethics

In the face of an increasingly complex global regulatory environment SF has always adhered to high standards of ethics

and integrity and upheld the philosophy of sustainable and healthy business. In 2024 the Company formulated and issued

Based on risk event management the Company carried out a targeted refresh of the risk scenario and deposited the Code of Business Conduct Anti-Corruption Statement and Conflict of Interest Statement which are applicable to all employees of SF and its companies and branches around the world urging all employees to strictly demand themselves

5 risk response management and control plans in 2024. respect laws and regulations respect the system and work with partners to operate in compliance with integrity.

Based on the summarized response experience of historical risk events the Company considered medium- and

high-risk points into business scenarios to prepare corresponding risk plans achieving 100% coverage of

medium and high-risk points. Code of Business Conduct Main contents

In 2024 the Company continued to improve the risk management system thoroughly identify potential risks in business Our employees:

operations cooperate with core business units to carry out a number of special tasks on core risks and formulate targeted * Respect and safeguard human rights

compliance plans to effectively respond to and resolve related risks and improve risk management maturity. At the business

regional level the Company comprehensively used expert assessment internal risk event analysis external penalty data * Work safety and health

and risk model results to accurately carry out special response measures successfully resolve various risks and provide * Diversity and cultural inclusion

a solid guarantee for the stable business operation.Code of Business Conduct Our commercial activities:

Risk Management Training * Choose a business partner

* Respect and protect personal information and commercial

SF continues to carry out diversified risk training and empowerment courses and strengthens employees’ risk awareness confidential information

through offline training online learning and examination clearance. In 2024 the Company conducted risk compliance * Integrity and anti-corruption

training as planned covering business risks product and service quality anti-corruption and other risk areas and

risk-specific training covered all new employees. * Gifts and hospitality

* Anti-monopoly and fair competition

* Anti-Money laundering and counter-terrorism

In 2024 the Company conducted a total of 36 risk compliance trainings with a training time of over 88080 * Compliance with export controls and economic sanctions

hours and the coverage rate of special risk training for new employees reached 100%. Our Company:

* Use and protect company assets

* Use and protect information system security

ESG Risk Management * Protection of intellectual property rights

* Proper use of social media

SF regularly carries out the identification and sorting of risk information database and fully integrates environmental

social and governance risks into the original level 1 2 and 3 risk level databases. The ESG risk management structure * Avoid conflicts of interest

is consistent with SF’s risk management organizational structure with the Risk Management Committee of the Board of * Accurate records and truthful disclosures

Directors as the highest risk management body responsible for the identification prevention and control of ESG risks. * Prohibit insider trading

* Environmental protection and sustainable development

SF incorporates ESG risks such as intellectual property risks anti-corruption risks occupational health and safety risks

human rights and human resources management risks and environmental risks into the risk management framework and

regularly evaluates and monitors related ESG risks. Among them environmental risks include climate change transition Anti-Corruption Statement * Anti-corruption guidelines * Complaints and reporting

risks carbon target management risks energy use monitoring risks etc. (For the governance response measures and

targets of climate change risks please refer to the section headed “Addressing Climate Change”) Conflict of Interest Statement * Recusal from office * Work avoidance26 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 27

Anti-Monopoly and Anti-Unfair Competition To create a fair just and open working atmosphere SF has also established an anti-corruption system of “no courage no ability and no intention” to strictly prevent and sternly punish illegal and corrupt behaviors such as bribery acceptance

SF always adheres to the principle of fair and free competition strictly abides by anti-monopoly and anti-unfair competition of bribery embezzlement and fraud.laws and regulations formulates anti-monopoly-related management systems systematically regulates market competition

behaviors and is committed to maintaining an honest fair and free market order and business environment. In 2024 SF

did not have major legal proceedings related to unfair competition and antitrust.The Company takes active measures in the field of anti-monopoly and anti-unfair competition to ensure the compliance

of business activities. In 2024 the Company formulated and issued guidelines related to the review of exclusive clausesto guide employees to identify possible risk clauses in contracts optimize the contract approval process strengthen the Create a working Create a “no ability to Lay a solid foundation ofcompliance review process ensure that contracts comply with relevant provisions of anti-monopoly and competition laws atmosphere of “no courage be corrupt” governance “no intention to be corrupt”effectively prevent potential legal risks and comprehensively build a strong anti-monopoly compliance defense line. to be corrupt” environment of ideology

Active anti-fraud Organization governance Commitment signing

The Company attaches great importance to the construction of anti-monopoly culture and continuously improves Professional investigation and Systems and standards Propaganda and education

employees’ compliance awareness and ability by carrying out multi-level and targeted anti-monopoly training. In addition punishment Democratic supervision Special learning

the Company specially invited law firms to conduct in-depth interpretation of the latest law enforcement and legislative Strict accountability system Organization atmosphere

trends of the anti-monopoly law and the anti-unfair competition law further consolidate employees’ legal awareness

create a cultural atmosphere of fair competition and provide a solid guarantee for the Company’s compliance operations. SF “No Courage No Ability and No Intention” System for Anti-corruption

Anti-Bribery and Anti-Corruption Risk Management

Anti-Commercial Bribery and Anti-Corruption

SF has established a systematic anti-corruption risk assessment mechanism to comprehensively identify and assess

SF integrates bribery and anti-corruption policy into its daily operations has zero tolerance for any form of corruption potential risks in various business areas formulate targeted response measures and continuously strengthen anti-corruption

bribery and fraud and continues to strengthen the Company’s ability to control business ethics such as anti-corruption risk management. The Company conducts annual reviews on the effectiveness and compliance of internal control to

anti-bribery and anti-money laundering through anti-corruption risk assessment anti-corruption audit and anti-corruption prevent and timely detect bribery and corruption risks and reports the review results and countermeasures directly to the

education. SF has established an internal audit department independent of business lines to monitor the implementation of Audit Committee of the Board. In 2024 the Company further deepened digital anti-fraud research and proactively identify

anti-corruption systems and systems through internal audits. In addition the Company has established an anti-corruption more than 600 abnormal clues in multiple fields and initiated the “Clean Breeze Campaign” to rectify potential risk points

compliance management committee and a review committee to support the effective implementation of the anti-corruption significantly improving risk prevention and control capabilities and providing a solid guarantee for clean operations.compliance control mechanism. During the reporting period SF did not commit corruption bribery fraud and other violations

of laws and regulations that may have a significant impact on the Company’s operations. Anti-Bribery and Anti-Corruption Audit

Integrity Management System SF has included anti-corruption in its key audit areas to identify and assess potential risks so as to ensure the effectiveness

of its internal anti-corruption management system and safeguard the Company’s compliance operation. In the past three

The Company has established a defensive line for integrity supervision from the Audit Committee of the Board of Directors years the percentage of all operational sites for which an internal audit/risk assessment concerning business ethics issues

the regulatory department at the headquarters to the business areas/branches. Three defensive lines have also been has been conducted was 100%. In addition SF conducts third-party external audits every year to independently review the

established simultaneously within business areas/branches to achieve an integrity management system that runs through Company’s business ethics and sort out and identify potential business ethics-related risks in the Company’s operations.the whole network and all positions of management. In addition the Company has also set up a Senior Executive Discipline

Inspection Committee and an Employee Discipline Inspection Committee led by the Chief Executive Officer (CEO) the

Chief Human Resource Officer (CHO) and the Chief Audit Executive (CAE). These committees are respectively responsible Anti-Bribery and Anti-Corruption

for managing the integrity and discipline of senior management and other employees. Education Excerpts from the Anti-Corruption Commitment Letter:

● I will refuse to engage in any bribery acceptance of bribes

SF has formulated the Employee Handbook and embezzlement and other improper business practices during the

Senior Management Disciplinary Integrity Handbook to clarify the Company’s Employee Discipline Inspection Committee tenure of office.Inspection Committee definition of internal and external integrity ● I will refuse to engage in any behavior that conflicts with the

behaviors the definition of violation behaviors

and the corresponding penalties thus providing interests of the Company during the tenure of office unless prior Led by the CEO CHO and CAE

all employees with a clear and reliable written and explicit intention is obtained from the Company.●

code of conduct to regulate the behaviors During employment if any unit or individual related to the business

of the employees and to advocate honest of the Company offers or request any gift to me during the tenure

of office I will refuse and promptly report to the Company.The third line: Company audit practices. At the same time the Company

actively promotes all employees to sign the

Anti-Corruption Commitment Letter strengthens

the awareness of integrity and creates a clean and honest culture atmosphere. In 2024 the signing rate of SF practitioners’

The second line: Regulatory

department at the headquarters Anti-Corruption Commitment Letter reached 99.5%.Three Defensive

Lines for Integrity for each segment

Supervision Legal affairs/Compliance/Internal Business The Company continues to strengthen the construction of integrity culture and conducts regular integrity index surveys to

control/Risk control etc. Areas/ gain a comprehensive understanding of the effectiveness of internal integrity construction. At the same time the Company

Branches conducts training on ethical standards to all employees (including part-time employees and contractors) through system

Risk Control Group of Operation interpretation integrity briefings and anti-corruption announcements so as to effectively enhance employees’ anti-corruption

and Management Department awareness. In 2024 SF adopted a combination of “online cases + offline training” to carry out positive promotion of integrity

The first line: Business areas/branches culture and negative warning of fraud cases and organized all employees to learn know and abide by the rules.SF’s Defensive Lines for Integrity Supervision

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B28 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 29

In 2024 there were 0 privacy breaches of anonymous whistleblowers in SF.Exposure bulletin Propaganda and System Cautionary form Integrity briefing Anti-corruption

Early warning prompts interpretation Judicial fraud case Monthly disclosure announcement

for disclosure of Positive guidance Red line under rules disclosure warning Hot issues and Illegal fraud

violation of rules or Commendation of Reporting channels SF’s the Reporting Management Measures sets out the confidentiality requirements for whistleblower Clean government concerns Annual

disciplines examples Reward mechanism information including but not limited to the following:base warning announcement

●

Situational guidance All personnel who receive information reported shall submit the information to the department in charge of education

whistleblowing and shall not at their discretion disclose the information to other personnel.● Personnel involved in the follow-up of the report shall not disclose the relevant information to other personnel.● Investigation results and handling opinions shall not be disclosed prior to the assessment and public announcement

SF Anti-Corruption Propaganda and Education of the disciplinary opinions.● Investigation reports and evidence shall not be disclosed to other personnel at their discretion.

2024 Integrity Training Program Reporting Channels

SF provides a 7/24 reporting channels for internal and external stakeholders and encourages employees suppliers and

“Integrity Special Training”: A special integrity training with the theme of “Integrity Responsibility and Concentration of other stakeholders to report violations of business ethics publicly or anonymously through email official website letterManagement” was conducted for key positions and specific functions covering 274 employees. hotline and other channels. At the same time the Company has established a mutual communication mechanism to

understand the plight of employees on business ethics through employee symposiums internal media and other.“Anti-corruption Case Publicity”: Carry out publicity on typical anti-corruption cases for all employees promote regional

managers to go deep into the front line present themselves and convey typical cases to the grassroots at different levels.Reporting channels Target group

Reporting e-mail sf5198@sf-express.com

In terms of supplier anti-corruption management the Company formulated and published the Code of Conduct for

Suppliers this year advocating all suppliers to establish a sound compliance management structure formulating and Home-About Us-I want to report External stakeholders and all internal

implementing anti-corruption policies ensuring that they fully comply with SF’s code of conduct and standards and further SF official website

consolidating the honest and honest cooperative relationship between the two parties. At the same time through the (address: https://www.sf-express.com) practitioners

Sunshine Procurement Notification Letter the Company clarifies the responsibilities and rights of both parties to jointly

build integrity sets a high-standard business ethics example and requires cooperative suppliers to sign the Integrity Mailing SF Headquarters – Audit Committee (receipt)

Agreement to jointly build an integrity value chain. In addition the Company pays attention to supplier integrity education

and this year conducted integrity training on “Sunshine Cooperation Healthy and Win-win” for cooperative suppliers Forespace APP Service - I want to report

covering 272 cooperative suppliers. All internal employeesLabor union hotline 4006 883 783

For the reported information received the Company strictly implements the “Triple Ones” (“三個一”) timeliness requirements

In 2024 the signing rate of suppliers’ the Integrity Agreement reached 100%. to ensure quick response and timely handling. After investigation and verification of any violation the Company would

punish the responsible person accordingly according to the severity of the violation; If it is suspected of breaking the law

the person responsible would be handed over to the judicial organ for handling.Whistleblowing Management “Triple Ones” Requirements:

●

SF attaches great importance to whistleblower management and whistleblower protection and actively creates a safe and Response within one working day: Respond to the whistleblower within one working day upon receipt of the report.●

credible whistleblower environment. The Company continues to improve the Reporting Management Measures which clearly Case confirmation within one week: Confirm whether a case needs to be filed for investigation within one week upon

stipulates the confidentiality requirements of whistleblower information and any employee who comes into contact with receipt of the report.●

whistleblowing information must strictly fulfill the confidentiality obligation. The Company strictly prohibits retaliation against Completion of the investigation within one month: Complete the investigation of the report and provide the results

whistleblowers and clue providers. Violators would be severely dealt with and those suspected of committing crimes would be within one month of confirming the case.held accountable according to law. At the same time as the first person responsible for the protection of witnesses (including

whistleblowers) the heads of organizations must take reasonable measures to ensure that their rights and interests are not

infringed resolutely put an end to any form of retaliation and effectively protect the rights and interests of whistleblowers.At the same time SF introduced the reporting reward mechanism and expanded the reward scope. The Company encourages

many people familiar with the matter to actively provide valuable information to the Company enhance the enthusiasm of In 2024 SF achieved a 100% follow-up rate for effective reports and a 97% compliance rate for the

employees and external stakeholders to participate in reporting and provide strong support for maintaining the Company’s “Triple ones” requirements regarding time-efficient complaint handling.good operating environment and business ethics.30 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 31

Protection of Intellectual Property Rights In accordance with the latest relevant laws regulations and data protection standards at home and abroad the Company continuously iterates internal systems and related measures to provide a solid guarantee for information business. In 2024

SF attaches great importance to intellectual property protection strictly abides by the Patent Law of the People’s Republic SF comprehensively revised the Privacy Data Security Compliance Management Standards and the Information Security

of China Trademark Law of the People’s Republic of China Trademark Law of the People’s Republic of China and other High-Risk Behavior Management Measures based on the actual business situation; At the same time based on data

laws and regulations builds a rigorous and standardized intellectual property management system implements scientific classification and classification the Data Lifecycle Security Management Regulations were added to clarify the security

and effective hierarchical classification and differentiated management ensures the compliance and orderly use process management requirements of different levels of data; In addition in order to meet the requirements of laws and regulations

effectively protects the Company’s intellectual property rights and interests in an all-round and multi-level manner and and internal supervision and inspection the Management Standard for Compliance Inspection of Personal Information

builds a solid backing for the Company’s continuous innovation and development. In 2024 SF Technology was recognized Protection was added to guide the compliance inspection of personal information protection.as the “2024 Shenzhen High-Value Patent Cultivation and Layout Center” for its outstanding performance in the field of

intellectual property protection demonstrating its demonstration and leading role as a key technology enterprise in the The Company’s information and network security management system has passed ISO 27001 information security

industry in intellectual property protection. management system certification and ISO 27701 privacy information management system certification covering the Company’s main business operation scenarios. In addition SF Express App has passed the network security level protection

In order to stimulate innovation vitality the Company implements an intellectual property incentive mechanism to encourage level three protection evaluation and CCRC mobile Internet application (App) Android/IOS security certification providing

employees to actively carry out innovation activities and all-round guarantee for user data security.guide employees to transform innovation achievements into

intellectual property rights in a timely manner. The Company

held a “World Intellectual Property Day” theme event to

commend the patents accepted and authorized in the previous

year. Among them a total of 9 outstanding patents and 16

outstanding inventors won the Intellectual Property Special

Contribution Award.In addition the Company integrates intellectual property

compliance culture into daily information and business

processes through knowledge quizzes special trainings and

poster promotions continuously strengthens employees’

awareness of intellectual property protection and compliance

risk and promotes innovation and development. SF conducts regular training on IP protection

ISO 27001 Certification CCRC (Andriod) Certificate CCRC (IOS) Certificate ISO 27701 Certification Level 3 network guarantee

Ensuring Information Security letter (core operation and

online business)

Information and Network Security Management System Maintaining Network and Data Security

SF continues to invest in building network and data security capabilities to provide users with safe stable and reliable

SF strictly abides by national laws regulations and industry norms always maintains high alertness to information products and services ensure the continuity of business systems and meet regulatory compliance requirements. By

security and network security risks and continues to improve the construction of internal information and network security regularly conducting network security vulnerability detection and actual combat exercises the Company continuously

management system. improves its security defense capabilities to ensure that it can respond quickly and effectively to potential threats. In order

to regulate employee behavior SF clarifies the high-risk behaviors of internal information and network security formulates

The Company has established a three-level information security and privacy protection management structure consisting of the principles of punishment for violations and effectively protects user data from unauthorized access or malicious attacks.decision-making level management level and executive level. The Information Security and Privacy Protection Committee

is the highest decision-making organization responsible for information security and privacy protection decisions In terms of user privacy protection SF strictly follows the latest laws and regulations at home and abroad and regulates

appointments and instructions. The Group’s Information Security and Privacy Protection Working Group is set up under the collection use sharing and retention of user privacy data. The Company adheres to the principle of “minimization”

the Committee which is led by the Chief Information Security Officer to support the Company’s information security and of data collection collects and processes user data only within the necessary scope and obtains user consent in a legal

privacy protection governance and ensure the efficient operation of the management system. and transparent way to effectively protect the security and privacy of user data.In order to further improve data security management SF regularly conducts data security audits comprehensively

assesses internal and external data security risks according to the latest regulatory requirements and continuously

improves the information and network security management system according to the evaluation results. In 2024 the

Company did not have major data security incidents.Be responsible for information security and privacy

Information Security and Privacy Committee protection decisions appointments and instructions In 2024 SF conducted multiple third-party data security due diligence investigations. The investigation areas include

Composed of the CEO the CFO and the CTO of the Company as well as supervision and audit of personal qualifications and certification information security policies human resource security physical security network security

information protection related matters log auditing host security application security terminal security compliance data and privacy protection and other fields.There was no material non-compliance in the third-party data security due diligence this year which fully demonstrated

Information Security and Privacy Protection Working Group SF’s excellent practices in data security and privacy protection.Led by the Chief Information Security Officer it is composed of the Coordinate and organize the Company’s information

Information Security Center the Legal Affairs Center and various security and privacy protection governance

business lines.Departments and Business Units Implement specific information security and privacy

Composed of functional departments and business units protection governance measures

Decision Management Implementation

maker32 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 33

Assessment of Graded Protection: Construction of Information Security Culture

The security compliance of information systems is monitored and assessed based on national and industry standards

and specifications. This assessment enables the Company to gain a timely understanding of the security protection

status of information systems and to assess their security protection capabilities. In addition targeted corrective Protecting information security is the common responsibility of all SF employees. In order to strengthen information and

actions can be proposed for any identified security issues and potential risks. network security management capabilities the Company has taken multiple measures to comprehensively enhance all

employees’ awareness of information security through network offensive and defensive drills and information security

Internal Audit of the Management System: training and enhance information security and personal information protection capabilities.Conduct internal audits of the data security management system in accordance with system standards such as

ISO 27001 and ISO 27701. The management system is audited from three aspects: compliance applicability and

sufficiency and any problems found are rectified in a timely manner. In 2024 SF carried out one information security Network Attack and Defense Drill

internal audit effectively ensuring the reliability of the company’s information and network security system.In order to continuously improve the Company’s network security protection capabilities and emergency response

capabilities SF organizes red-blue confrontation drills every year. By simulating various classic scenarios of external

Security Response Center (SRC): network security attacks SF constantly discovers its own network security defense weaknesses during the red-blue drills

The SF SRC is designed to enable potential internal risks to be identified externally and remediated in a timely and reviews and improves them comprehensively improves the security team’s collaborative combat capabilities and

manner and to reward users who discover security vulnerabilities in the systems and operations. emergency response capabilities and consolidates the Company’s data security capabilities.SF Data Security Risk Management In 2024 the Company carried out multiple actual combat red and blue drills in stages. Through the collaboration of internal

and external security teams it simulated real attack behaviors such as phishing attacks and vulnerability attacks covering

various typical scenarios of network security and data security confrontation and comprehensively verified the effectiveness

Personal Information Protection of the Company’s security operation system.SF attaches great importance to the protection of customers’ personal information security. Based on laws regulations and

industry best practices SF has built a comprehensive privacy protection management system formulated and continuously Information Security Training

improved a personal information security and compliance system covering the entire life cycle of data and ensured personal

privacy protection work carried out in an orderly manner. In order to implement the protection of personal information the In order to enhance employees’ awareness and ability of information security SF conducts information security thematic

Company has taken diversified measures covering the entire digital life cycle to effectively protect customers’ privacy and training for all employees every year. In 2024 the Company carried out 19 network security technology sharing activities

security with a responsible attitude. In 2024 there were no major personal information security incidents in SF. and 23 security awareness promotion activities covering all employees with a cumulative training time of more than 1300

hours which significantly improved employees’ information security protection awareness and execution and disposal

capabilities.Strengthening the Technical Foundation of Privacy Protection

SF keeps improving its data security technology capabilities including unified privilege management platforms automated

encryption/decryption platforms log management and analysis tools and personal data desensitization. The aim of these efforts In 2024 SF carried out network security technology sharing activities and security awareness

is to protect users’ personal information from unauthorized access manipulation disclosure corruption or loss. 19 23

promotion activities covering all employees with a cumulative training time of more than 1300 hours.Personal Data Lifecycle Security Management

Under the data lifecycle theory the personal information involved in the business activities is subject to classification and

grading management. SF takes protective measures such as encryption de-identification and access control during the data

collection transmission use and storage processes depending on the sensitivity of the data and the principle of minimum

necessary rule. These measures aim to effectively protect personal information security. Special training empowerment focusing on data security

Security Incident Detection and Response

SF uses a security incident investigation and response platform to monitor both internal and external threat signals targeting In 2024 SF conducted special training for key industry and research personnel

sensitive data in real time. This platform allows for immediate identification of abnormal operations and high-risk behaviors security personnel and legal compliance personnel with the theme of basic

that may pose the risk of personal information leakage. Once an abnormality is identified the Company immediately launches cross-border legal knowledge and strategies data security strategies etc. aiming

an investigation and takes measures to minimize the risk of personal information leakage at the source. to enhance employees’ awareness of data protection and strengthen data security

management. Through in-depth study of training courses employees have a clearer

understanding of cross-border data legal knowledge requirements and internal data

Mechanism for Responding to Personal Information Rights security policies which helps to strictly implement security policies in daily work

SF has established a personal information rights request response mechanism. Before collecting and processing users’ personal effectively reduce data security risks and protect the Company’s data security.data in its business it timely informs users of their personal information rights and other relevant information through means

such as providing privacy agreement check boxes and device pop - up windows. It also responds to users’ rights - exercise

requests within the time limits required by law.SF regularly conducts information security

Privacy Waybill Protection themed training sessions annually

SF desensitizes the fields on the express waybill that contain users’ personal information namely the names contact and

address details of the sender and recipient. In addition delivery personnel and customer service representatives communicate

with customers using virtual phone numbers. This effective management of the risks associated with data sharing enhances

users’ privacy experience.Measures to Protect Personal Information34 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 35

Environment

Pioneering Low-Carbon Logistics to Power

a Green Transformation

The logistics system plays a leading fundamental and strategic role in

building a modern economic system. Building a green low-carbon and

efficient logistics and transportation system has become an inevitable

choice for the industry to achieve long-term development. As an

enterprise with a sense of social responsibility SF actively responds to

the national strategy of "Carbon Peaking and Carbon Neutrality" relies

on technological innovation deeply promotes energy conservation

and carbon reduction practices in logistics warehousing management

packaging materials to create an industry-leading green logistics supply

chain model. By extending green value to the industrial chain SF builds

a low-carbon and efficient bridge between the production end and the

consumer end and joins hands with the upstream and downstream value

chains to move towards a sustainable future.Creating Green Logistics

Promoting Circular Economy

Practice Green Operation

Safeguarding Ecological Environments

Addressing Climate Change 0336 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 37

Creating Green Logistics

With the goal of protecting the environment saving energy and reducing emissions SF constantly improves its GHG emission intensity (tCO2e/million revenue)

environmental management system and achieves green management covering the entire life cycle of logistics by steadily

promoting low-carbon transportation building a green industrial park developing sustainable packaging and actively 2023 45.4

exploring the application of green technology and actively creating green and sustainable logistics.

202441.2

10203040506070?9.5%

In 2024 SF reduced greenhouse gas emissions by 2972306 tCO2e. Carbon footprint per parcel (gCO2e/parcel)

2023807.0

Carbon Reduction Direction Carbon Reduction Initiatives 2024 709.9

1503004506007509001050?12.0%

Green Ground Transportation Green Aviation

Optimize the transportation capacity structure Applying Sustainable Aviation Photovoltaic power generation (MWh)

and increase the proportion of new energy Fuel (SAF).vehicles. Increase the proportion of large 2023

Increase vehicle loading capacity and replace cargo aircraft with low energy. 18339

Green vehicles with high axle count. consumption and high energy 2024 70000

Transportation Phase out high fuel-consumption vehicles efficiency. 10000 20000 30000 40000 50000 60000 70000 ?282%

and reduce energy consumpt ion and Application of aviation fuel-

pollution. saving technology (international Equivalent to an emission reduction of 38846 tCO2e

Pilot operation of new energy vehicles routes redispatch straight route

such as methanol liquefied natural gas selection). GHG emissions reduced through green transportation (tCO2e)

(LNG) compressed natural gas (CNG) and Increase the proportion of new

hydrogen fuel. energy vehicles in aviat ion 2023 374469

bases.

2024479327

Accelerate the progress of photovoltaic construction in industrial parks and increase 80000 160000 240000 210000 400000 480000 560000 ?28%

the proportion of clean energy use.Green Promote the transformation of energy-saving equipment such as park lighting

Industrial Park optimization and intelligent electric box deployment. GHG emissions reduced through green packaging (tCO2e)

Implement intelligent energy monitoring and management to promote the process of

refined energy management. 2023 541090

2024664184

Green Fully implement packaging plastic reduction recycling harmlessness and 100000 200000 300000 400000 500000 600000 700000 ?23%

Packaging standardization.GHG emissions reduced through technology innovation (tCO e)

Digital and intelligent carbon management: based on standardized carbon 2

management capabilities developed the industry's first shipment-level carbon

calculation model. 2023 1018436

Technology Intelligent path planning: optimize transportation routes and reduce transportation 2024 1785121energy consumption.Innovation 260000 520000 780000 1040000 1300000 1560000 1820000 ?75%Smart packing algorithm: Improve loading rate and reduce packaging material

consumption.Promote digital tool processes such as electronic receipt photo return and paperless

reimbursement. Emission reductions contributed by other initiatives (tCO2e) (including “SF Forest”)

20231692

SF Forest Planting more than 1647 acres of carbon-neutral forests in Hebei and Sichuan. 2024 4829

800 1600 2400 3200 4000 4800 5600 ?185%38 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 39

Promoting Low-Carbon Transportation Collaborated with Luxury Brand Clients to Create a

With a core focus on green and sustainable development SF deeply integrates low-carbon concepts into daily operations and Benchmark Project For “100% Green Urban Distribution”

management practices continues to consolidate the foundation of green technology actively explores and promotes a variety

of low-carbon transportation modes vigorously promotes the application of green logistics scenarios and builds a sustainable Scope of Cooperation

logistics system. This provides a solid support for building a sustainable logistics system achieving harmonious development To address the luxury brand client’s needs and pain

between corporate value growth and environmental protection and setting a benchmark for the industry's green transformation. points such as online integration of orders across multiple

scenarios traceability of logistics data across multiple 1 F orward 2 R everse direction direction 3 Allocation 4 Others

links and comparison and aggregation of carbon emission

Refining Carbon Footprint Management data under different transportation capacities SF has Application scenario

Relying on the Fenghe Platform provided digital and green solutions. It has explored a

Since SF officially released the carbon target white paper in 2021 it has been committed SF has achieved refined green commercial service model for urban distribution

to building an integrated green and low-carbon supply chain service capability management of logistics carbon **Logistics centre Store 2helping the brand client to achieve cost improvement

and reducing the impact of greenhouse gases on the environment through carbon footprint in all scenarios such as in the supply chain diversification of scenarios and

emission management in all aspects of the industrial chain. Relying on the industry- waybills venues and packaging

leading technological innovation capabilities the Company has built a standardized carbon emission performance improvement and jointly Transfer station Store 1 Store 3carbon management system independently developed the industry's first full-link covering140scenarios 273 created the best benchmark project for “100% Green Urbanlogistics carbon footprint management platform-"Fenghe Sustainable Development Distribution” with the client.Platform" (hereinafter referred to as "Fenghe Platform") and integrated the Company's indicators and 27 accounting

carbon emission and carbon emission reduction data covering multiple links such as models in the supply chain.**Logistics centre Repair and Maintenance

packaging transportation transit delivery.In 2024 SF empowers refined carbon management capabilities to the upstream and

downstream of the industrial chain and launch Fenghe SaaS services to help customers Green Ground Transportation

quantify and track greenhouse gases in multiple scenarios such as supply chain logistics

and transportation site energy consumption and packaging material use. disclosure

and certification. At the same time many core functions of the platform such as visual Road transportation is one of the important carbon-emitting links in logistics operations. In order to promote the all-round

dashboard refined carbon data reports transportation carbon calculators carbon development of green land transportation the Company continues to increase the launch of new energy vehicles optimize

diagnosis and carbon planning capabilities have been comprehensively upgraded. the selection criteria of fuel vehicles and empower vehicle energy consumption management and transportation route

With its standardized carbon management system and refined carbon calculation optimization through scientific and technological means significantly reducing the air pollution and greenhouse gas

capabilities Fenghe Platform has passed GLEC V3.0 and ISO 14083 international emissions during ground transportation.standard verification becoming the first enterprise in the express delivery industry to

obtain this certification. Optimization of Transport Capacity Structure

Based on a standardized carbon management system and refined carbon calculation

capabilities coupled with leading logistics industry experience SF has reached deep SF has steadily expanded the scale of its green fleet by adopting various methods such

into various industries such as new energy high technology clothing shoes and hats as self-purchase and leasing gradually replaced traditional fuel transportation vehicles

consumer goods and luxury goods. As of the end of 2024 it has provided customized and orderly promoted the green transformation and upgrading of its transportation

green and low-carbon supply chain solutions and services to more than 60 world- capacity structure. In 2024 the company added nearly 9000 new energy vehicles into Over 40000 new

renowned customers deeply empowered upstream and downstream partners in the operation mainly used in diversified transportation scenarios such as short-distance energy vehicles in use

industry chain worked with customers to accelerate low-carbon transformation and Fenghe Platform obtained ISO branch lines connections and terminal collection and dispatch within cities as well as

jointly promoted the industry towards a zero-carbon future. 14083 Certification primary and secondary trunk lines across provinces and cities. As of the end of the covering 253 cities.reporting period more than 40000 new energy vehicles have been placed in service

with a service coverage of 253 cities.Helped a leading global luxury goods brand launch the

"supply chain-level sustainable dual innovation" action in China

Number of SF’s Self-owned and Leased New-energy Powered Vehicles from 2018 to 2024

In March 2024 SF signed a letter of intent for "supply chain-level full-link sustainable strategic services" with a leading global

luxury brand to jointly launch the "supply chain-level sustainable dual innovation" action. The purpose of this cooperation is to 50000

actively synchronize the accurate carbon information in the supply chain service scenario between brand owners and logistics

providers optimize the transportation mode of upstream and downstream logistics providers of brand owners support their 40439

supply chain greenhouse gas emission reduction and offset actions and reduce the company's environmental protection

compliance costs and climate risks in operations and enhance the green and low-carbon operational resilience of the entire 40000

logistics supply chain. 31750

The collaboration will lead to two sustainable innovation projects: 30000 26189

quantify the climate impact of each link and quantify the climate impact of material waste 21278

track the climate contribution of green scenarios

Climate track the contribution of circular economy including full-link transportation carbon footprint Circular under the closed-loop material recycling model 20000 17053

innovation calculation full-l ink storage carbon footprint innovation including carbon footprint measurement on the

calculation and full-link sustainable performance material recycling side and targeted recycling 11354

management. performance management.

100007049

This cooperation will accelerate the green and low-carbon transformation of the fashion industry supply chain and providevaluable industry practical experience and contributions to the achievement of China's supply chain goals of “Carbon Peakingand Carbon Neutrality”. 0

2018 2019 2020 2021 2022 2023 202440 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 41

At the same time SF actively explores large-scale deployment and efficient operation strategies of renewable energy

vehicles. It conducts a comprehensive assessment based on multiple factors including technological development By periodically tracking and monitoring the achievement of fuel

trends technological maturity the completeness of energy replenishment infrastructure and the technical compatibility consumption targets it provides scientific and reliable decision- Relying on data technology establish a driving behavior Driving

and economic feasibility in actual operation scenarios. SF has launched pilot operations of new energy vehicles such as Application making basis for fuel management continuously promotes the database covering idle speed speeding and other dimensions behavior

methanol liquefied natural gas (LNG) compressed natural gas (CNG) and hydrogen fuel vehicles in some areas and of vehicle achievement of fuel consumption targets and improves the level analyze the relationship between driving behavior and fuel model

routes. In order to ensure that the performance and operating benefits of new energy vehicles are fully verified in 2024 the fuel system of refinement and comprehensive efficiency of fuel management. consumption and tap the potential points of energy saving.construction

Company piloted the deployment of 10 LNG vehicles 5 CNG vehicles and 5 methanol vehicles in Shandong Henan and

other provinces. This initiative provides data support and decision-making basis for the Company’s subsequent large-scale

new energy vehicle launch plans. In addition the number of LNG vehicles put into operation by the Company through

the co-construction fleet collaborative operation model has exceeded 300 further accelerating the green and low-carbon

transformation of logistics and transportation. Through regular internal meetings to share excellent

Based on factors such as route vehicle type number of axles management methods (such as car change guard

Vehicle Energy Replenishment Management Fuel and emission standards identify and output a list of high Management change parking learning etc.) and continuously improve

consumption fuel consumption vehicles and require regional managers to and training fuel consumption control measures; We implemented fuel

In order to achieve accurate assessment and refined management of the energy efficiency of new energy vehicles SF data analysis strengthen management and control to provide strong support empowerment consumption management support measures for key areas and

continues to optimize the new energy vehicle system management platform analyzes and formulates more targeted tool for fuel consumption optimization. successfully achieved a reduction in vehicle fuel consumption

scientific and reasonable new energy vehicle energy management strategies and significantly Improve vehicle operating ranging from 1% to 5%.efficiency and energy efficiency.With the widespread application of new energy vehicles in logistics transportation their mileage and usage frequency

continue to grow leading to a significant increase in energy replenishment demands. To better meet the energy Transportation Routes Optimization

replenishment and charging needs of new energy vehicles SF integrates its own electric charging pile resources and

actively collaborates with third-party charging service providers. By pooling resources from multiple parties it continuously

optimizes the vehicle energy replenishment network. In 2024 all the newly self-built charging piles of the Company have SF comprehensively considers key elements such as express timeliness and transportation distance in ground

been connected to the charging platform system. While obtaining the real-time charging energy data of new energy vehicles transportation and relies on intelligent algorithm models to plan the optimal route for cargo transportation. Through

it also provides them with convenient and efficient charging service solutions. full-process monitoring and optimization measures such as pre-transportation planning and early warning automated early

warning and intervention during transportation post-transportation tidal analysis and overtime processing the Company can

Fuel Vehicle Replacement identify road congestion sections in advance optimize transportation routes in an all-round way and significantly improve transportation timeliness. At the same time SF uses powerful data analysis capabilities and deep learning technology to

SF comprehensively considers multi-dimensional factors of fuel-powered vehicles such as the service life mileage accurately match and scientifically schedule freight routes and transportation resources to achieve the best combination of

loading rate and exhaust emissions. For vehicles that do not meet the concepts of efficient and green operations as well vehicles and goods effectively reduce resource idleness and waste and comprehensively improve transportation efficiency.as strict environmental standards the Company formulates detailed plans for phasing them out and steadily advances

the phase-out process. In terms of fuel vehicle selection and replacement optimization the Company comprehensively

improved fuel efficiency and reduced the impact of exhaust emissions on the environment by upgrading vehicle loading

capacity replacing high axle number vehicles and optimizing high fuel consumption vehicles. In 2024 SF replaced more

than 1300 traditional fuel vehicles. Special Multimodal Transport Empowers High-Quality Development of

Topic Green Logistics

By replacing vehicle models with insufficient

Increase Replacement Gradually replace high-axle count loading capacity increase transportation

vehicle loading of high-axle vehicles with low-axle count vehicles with loading capacity reduce operation frequency As one of the important directions for the better fuel economy and environmental

and optimize transportation capacity allocation capacity count vehicles development of green logistics multimodal performance effectively reducing fuel

efficiency. transport is characterized by high resource consumption. utilization and is green and low-carbon. By

integrating railways highways waterways aviation

For vehicles with high fuel consumption fuel and other transportation modes it can achieveconsumption is reduced by implementing Strictly implement the “National Stage Phase out optimal allocation and efficient utilization ofmeasures such as fuel consumption calibration Optimize VI Motor Vehicle Pollutant Emission” vehicles that resources. While improving quality and efficiency

and speed ratio adjustment and the vehicles high fuel standards and phase out vehicles that do not meet it creates significant economic and environmental

with ineffective improvement are eliminated to consumption do not meet the standards in advance the standards benefits. As an industry leader SF actively

improve the overall fuel efficiency of the fleet. vehicles to ensure the environmental compliance in advance works with industrial chain partners to explore of the fleet. multimodal transport modes such as “road-to-rail”

and “air-rail-subway intermodal transport” to

create green logistics solutions and help build a

Vehicle Fuel Consumption Control safe convenient efficient green and economical

modern logistics system. SF uses the Country’s first express e-commerce “road-to-rail” container multimodal train to carry parcels

SF adopts a dual-pronged strategy of management empowerment and implementation of initiatives. The Company

continuously enhances the fuel consumption control capabilities of its fuel-powered fleet through digital means effectively Facing the continuous growth of express delivery business in the central and western regions SF continues to

reducing fuel consumption. At the management level the Company formulated and implemented the Lump-sum Fuel explore new ways to reduce logistics costs and improve service quality on the basis of the existing air and ground

Consumption Plan for Commercial Vehicles scientifically set fuel consumption standards and targets according to different transportation networks. In 2024 SF cooperated with China Railway Container Transport Corp. Ltd Xi’an Branch

business scenarios and refined reward and penalty rules to achieve efficient utilization of fuel and effective control of Company to innovatively launch the “railway + express delivery” integration model and successfully launched a

transportation costs. Meanwhile the vehicle fuel system is applied to monitor the achievement of fuel consumption targets container multimodal transport train from Xi’an to Urumqi. From its first launch on March 26 2024 to December

in real time and continuously improve fuel management efficiency. 31 2024 SF has shipped a total of 3908 boxes and 7816 TEU goods through this multimodal train with a total

shipment weight of 38015 tons equivalent to the transportation volume of 2000 17-meter road vans. Compared with

In order to ensure the effective implementation of fuel consumption control measures the Company uses the intelligent traditional road transportation railway transportation has significant advantages in terms of green and low-carbon.fuel consumption management platform to comprehensively and accurately manage vehicle fuel consumption from multiple By transferring a large amount of goods from road to railway transportation it effectively reduces dependence on

dimensions such as measured fuel consumption and driving behavior norms and rectifies abnormal high fuel consumption high-carbon emission road transportation and further optimizes the transportation structure.situations. In addition SF regularly conducts drivers’ fuel consumption control and energy conservation and emission reduction

training launches self-operated vehicle fuel consumption control courses and provides targeted training based on the actual

needs of various regions to comprehensively improve drivers’ awareness and skills of fuel saving.42 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 43

Green Aviation

SF Airlines actively implements the concept of “double control” of total energy consumption and energy consumption B747model

intensity and steadily promotes the construction of green aviation. Starting from top-level design the Company builds Maximum operating load: approximately 115t

a scientific energy management structure clarifies the responsibilities of each department and ensures the efficient

development of energy management. Additionally the Company continues to introduce advanced management concepts Fuselage length: 70.6m

and technical means optimize the energy management system comprehensively promote energy conservation and Fully loaded range: 11000km

emission reduction in air transportation penetrate energy conservation and carbon reduction into each aspect of flight

operation and set a benchmark for the green transformation of the industry.B767model

SF’s Airlines Energy Management Structure

Maximum operating load: approximately 56t

Fuselage length: 54.9m

Energy Fully loaded range: 6000km

Conservation ● Conduct statistical analysis on

and Emission aviation kerosene gasoline diesel

Reduction gas water electricity and other

Leading energy data; B757model

Group and ● Formula te spec i f ic energy

Management Maximum operating load: approximately 30tmanagement work plans and

Committee measures; Fuselage length: 47.33m

● Advance the implementation of Fully loaded range: 5000km

● Guide the work of the Energy energy management work plans and

Management Taskforce; measures;

● Review and assess the work plans ● Regularly report the project progress

and measures proposed by the Energy to the Leading Group.B737model

Energy Management Taskforce. Management Maximum operating load: approximately 14t/16t/23.9t

Taskforce Fuselage length: 33.4m/36.45m/39.5m

Fully loaded range: 3500km/4204km/3750km

Application of Fuel-Saving Technology

SF Airlines continues to improve its energy management system and has obtained certifications of ISO 50001 Energy SF Airlines continues to explore and optimize fuel-saving technologies in the field of air transportation. A series of innovative

Management System and RB/T 104-2013 Energy Management Systems for Transport Industry Enterprises laying a solid fuel-saving measures such as optimizing flight altitude refining load management dynamically allocation of aircraft models

foundation for the refined and standardized development of energy management. In order to ensure the authenticity and based on payload forecast redispatch8 straight route selection and Auxiliary Power Units (APU) shutdown in a timely

reliability of air transport carbon emission data and meet the carbon emission monitoring requirements of regulatory manner to reduce aviation fuel consumption.agencies SF Airlines invites third-party verification agencies to strictly verify greenhouse gas emission data every year and

issue authoritative verification reports. In 2024 SF Aviation successfully passed the annual carbon emission verification

of the Civil Aviation Administration of China and the Ministry of Ecology and Environment and actively carried out energy

conservation supervision work to tap energy conservation potential and continue to improve energy utilization efficiency.SF Airlines has always taken low energy consumption and sustainable operation as its core goals and is committed to International Routes Redispatch Straight Route Selection

actively implementing the concept of green aviation through strategies such as optimizing aircraft model composition

applying fuel-saving technology and strengthening aviation fuel monitoring setting an example for the green development On the premise of ensuring flight safety SF Airlines By optimizing the flight route unnecessary detours

of the industry. can precisely reduce the amount of fuel for take-off and turns are reduced the flight distance is further

by implementing a redispatch strategy on international shortened and fuel consumption is reduced. In

Optimize Aircraft Model Mix routes thereby increasing the business payload of the 2024 SF saved approximately 1920 tons of

flight. In 2024 SF saved approximately 1235 tons aviation fuel and reduce carbon dioxide emissions

SF continues to build a “green fleet” with low energy consumption and high efficiency actively introduces large all-cargo of aviation fuel and reduced carbon dioxide emissions by approximately 5822 tCO2e through straight

aircraft such as 747 and 767 and increases the proportion of wide-body cargo aircraft gradually. Compared with the by 3745 tCO2e through redispatch. route selection.traditional 737 model the newly introduced large cargo aircraft shows higher carbon emission efficiency and lower fuel

consumption per ton of load under full load. As of the end of 2024 SF had a total of 89 owned cargo aircraft.

8 Under the premise of ensuring the safe and normal operation of flights SF Airlines rationally utilizes international route fuel policies and

implements redispatch strategies for flights to reduce aircraft refueling and lower fuel consumption.44 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 45

Strengthen Fuel Monitoring

The Company continues to improve the online fuel management system dynamically monitors and manages the jet fuel Special SF Achieved the First Commercial Trial Flight of a Domestic

consumption of each flight and improves fuel usage efficiency. At present key fuel-saving indicators such as international Topic All-cargo Aircraft Using Sustainable Aviation Fuel

routes redispatch straight route selection have been fully integrated into the system realizing the full tracking and

monitoring of fuel data from takeoff to landing. In 2024 SF Airlines upgraded its fuel management system added profile

optimization functions and intelligently adjust flight trajectory and speed with the help of advanced algorithms to achievecomprehensive optimization of fuel consumption flight time and emissions. Since the profile batch optimization function Air transportation is one of the key areas for the transportation industry to achieve the national “Carbonwas put into use the profile optimization of more than 40 routes has been successfully completed and the planned fuel Peaking and Carbon Neutrality” goal and its emission reduction process has attracted much attention.consumption forecast has become more accurate injecting strong impetus into the development of green aviation. Sustainable Aviation Fuel (SAF) as a direct-use liquid fuel alternative can reduce carbon emissions by

up to 85% compared to traditional aviation fuel. At present the SAF of the latest HEFA (Hydroprocessed

Upgrade Fuel-Saving Incentives Esters and Fatty Acids) can be mixed with traditional aviation kerosene at a 50% ratio without the need

for large-scale modification of existing aircraft engines or infrastructure bringing new possibilities and

In order to encourage pilots and dispatchers to actively practice energy conservation and emission reduction while ensuring prospects for air transportation emissions reduction.safety SF Airlines has set up a flight landing fuel assessment system. Relying on the online fuel management system the

Company developed an evaluation system for landing remaining oil index count fuel savings and rankings every quarter In the context of the world’s active response to climate change and promoting the green transformation of

and award rewards to those with excellent landing remaining oil control so as to more accurately measure and motivate the aviation industry SF actively participates in the exploration and innovation in the field of green aviation

energy-saving performance and achieve the effect of energy conservation and emission reduction. and works with partners to conduct in-depth research on the applicability and feasibility of SAF and deeply explore the potential value and emission reduction opportunities of SAF applications. In September 2024

SF Airlines was invited to participate in the sustainable aviation fuel application pilot project seminar

Optimize Ground Fleet held by the National Development and Reform Commission and the Civil Aviation Administration of

China to respond to the global 1.5 °C climate strategic goal and accelerate the localized demonstration

In order to achieve the goal of “100% electrification rate of vehicle equipment in aviation bases by 2030” the Company promotion and application of sustainable aviation fuel scale. After months of hard work and preparation

gradually phases out diesel and gasoline vehicle equipment in aviation bases and actively introduces new energy special on December 19 2024 an SF Airlines B737 all-cargo aircraft refueled with SAF successfully completed

vehicles including conveyor belt vehicles lifting platform vehicles and tractors etc. to accelerate the development of its first commercial flight with sustainable aviation fuel. The refueled domestically produced SAF can be

electrification of ground fleet. In 2024 the Company continues to increase the purchase of new energy vehicle equipment achieved under full life cycle scenarios. With 1600 kilograms of carbon emissions reduced SF Airlines has

and steadily improve the electrification level of vehicle equipment. also become the first cargo airline to use SAF for autonomous commercial flights of all-cargo aircraft on

domestic flights. In addition the flight also offsets the carbon emissions generated during the combustion

of aviation fuel by purchasing sufficient Verified Carbon Units (VCUs) becoming the first all-cargo flight

in the country to achieve carbon neutrality providing a practical basis for the sustainable development of

the air cargo industry.The electrification

The electrification rate

of vehicle equipment Shenzhen Ezhou

rate of vehicle

Headquarters

42 Strive to achieve

base equipment reached

reached % 100% 53%

electrification of

vehicle equipment

The electrification rate The electrification rate

of vehicle equipment Hangzhou in aviation bases by Beijing of vehicle equipment Base 2030 Base

reached 17% reached 22%

Progress of vehicle equipment electrification at various aviation bases in 2024

Strict Prevention and Control of Pollution

SF Airlines strictly implements pollutant emission control and noise pollution control. In terms of pollutant emission

control the Company has formulated and implemented internal operation management standards for waste engine oil

generated during aircraft maintenance and clarified the disposal procedures and requirements for waste fuel hydraulic

oil and lubricating oil. At the same time the Company actively explores ground operation optimization solutions replacing

traditional fuel APUs by promoting Ground Power Units (GPUs) supplies and optimizing aircraft taxiing paths to reduce

the inefficient operation time of aircraft engines and effectively reduce exhaust emissions. In terms of noise control the

Company has also adopted a series of effective noise reduction measures continuously optimized the take-off and landing

procedures departure flight procedures and cargo aircraft departure strategies and reduced the impact of aircraft noise SF Airlines’ first trial flight using SAF

on the surrounding environment by reducing engine thrust adopting various technical means such as Continuous Descent

Approach (CDA) and regularly carrying out noise monitoring work.46 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 47

Building Green Industrial Park In order to promote the green operation of the industrial park SF deeply integrates institutional norms with digital

technology gives full play to the synergistic effect and comprehensively improves the industrial park from key dimensions

SF actively builds a green and low-carbon industrial park focusing on green infrastructure construction and carbon such as operational efficiency improvement smart energy consumption management and control rainwater recycling and

reduction technology innovation and promoting the green operation of the industrial park from many aspects such as energy-saving equipment installation. Park environmental management capabilities.planning and design warehouse construction and operation management. Through various methods such as installing

roof photovoltaics introducing intelligent water and electricity management and optimizing warehouse space layout the Smart energy consumption

efficiency and energy-saving benefits of the transit link are comprehensively improved and the impact of the transit link management and control

on the environment is reduced. As at the end of the reporting period SF Changsha Foshan Wuhu Wuhan Chongqing

and Jinhua industrial parks were awarded the “Class I 3-Star Green Warehouse” certification by China Warehousing and ● The Company has formulated the Energy Consumption Management System of Industrial Park which relies on the

Distribution Association Guizhou Industrial Park was awarded the “Guizhou Province Green Logistics Park” certification intelligent hydropower system to achieve standardized management of public energy consumption and effectively improve

and Shunxinhui Hubei Logistics Center achieving phase-one carbon neutrality certification. the efficiency of resource use in the park. As of the end of the reporting period intelligent hydropower systems have been installed and operated in 13 industrial parks. Through the monthly energy consumption review mechanism the

hydropower energy consumption in public areas of the operated parks has decreased by 3% (water consumption) and

5% (electricity consumption) compared with 2023.

Improvement of

operational efficiency

● In order to improve the operation and management efficiency of the park the Company has built a property system

integrating core modules such as environmental greening security and fire management and maintenance and testing

Green Warehouse Certification (Wuhu) Green Warehouse Certification (Wuhan) Green Warehouse Certification (Chongqing) Green Warehouse Certification (Jinhua) of facilities and equipment which has been fully applied to all operating parks to ensure the efficient and safe operation

of the parks.Rainwater recycling

● The Company adopts permeable concrete technology to collect and recycle rainwater in the park and uses the recycled

rainwater for greening irrigation so as to improve water resources utilization efficiency and save water resources.Green Warehouse Certification (Changsha) Green Warehouse Certification (Foshan) Provincial Green Logistics Park Certification (Guizhou)

Installation of

energy-saving equipment

Promoting Change Through Technology to Create a New

Paradigm for Intelligent Zero-Carbon Industrial Parks ● The Company continues to promote the laying of new energy charging piles to meet customers’ green travel needs. As of the end of the reporting period 32 industrial parks have completed the construction of new energy charging piles

installed more than 300 charging equipment and provided more than 600 charging parking spaces.Shunxinhui Hubei Logistics Center adheres to the green and smart supply chain design concept integrates

advanced technology systems and panoramic automatic equipment and fully introduces the ESG management

system. It has become the first park of Shunxinhui in China to obtain carbon neutrality certification at this stage

and is committed to becoming a model of panoramic automated intelligent zero-carbon industrial park. In addition SF continues to promote photovoltaic construction in industrial parks formulates and implements the Industrial Park

Photovoltaic Project Management Implementation System clarifies the full life cycle management specifications of photovoltaic

The first full-scene automated warehouse project designed independently by Shunxinhui within the industrial park projects from site selection to operation covering supplier qualification review investment and construction standards equipment

achieves full automation of the entire process including inbound storage and outbound operations with the and material quality control construction phase management requirements and subsequent operation and maintenance

support of intelligent control systems and automated equipment. This helps to increase the overall labor efficiency specifications and other aspects. The Company steadily advances the construction process of photovoltaic projects in industrial

of the park by 20% and enables 24/7 “lights-out” operations. It is expected to reduce carbon dioxide emissions by parks and continue to increase the proportion of renewable energy use.more than 30000 kilograms throughout the year.Investment and construction progress and future plans of industrial park photovoltaic

In addition the park has introduced distributed photovoltaic

projects and it is expected that the cumulative carbon project

dioxide emission reduction will exceed 13000 tons in

the next 25 years; The cold storage adopts innovative As of the end of 2024 the company has successfully advanced the construction of 35 photovoltaic (PV) projects in industrial

refrigeration system which reduces energy consumption by parks. Among them 24 PV projects have been put into operation with the total installed capacity of the equipment reaching

20%-30% compared with traditional standard cold storage; 111 megawatts (MW). The annual power generation from clean energy has exceeded 70 million kilowatt-hours (kWh)

Apply new insulation materials automated power supply further driving the transformation and upgrading of the company’s energy structure.systems new energy vehicle charging piles LED lighting

and other environmentally friendly and energy-saving Looking ahead the industrial park has formulated a clear plan for PV projects. In 2025 SF will continue to invest in and

technologies to comprehensively reduce energy losses. build PV projects with an expected additional installed capacity of 50 MW. By the end of 2025 it is anticipated that the

construction of all PV projects will be fully completed and operational. At that time the total installed capacity of PV

Shunxinhui Hubei Logistics Center achieving equipment in the park will reach 170 MW and the annual power generation is projected to increase by 140 million kWh.phase-one carbon neutrality certification This will significantly contribute to the optimization of SF’s energy utilization structure and propel the company towards a

more environmentally friendly and efficient energy usage direction.48 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 49

Developing Sustainable Packaging Recyclable Packaging of SF

SF continues to deepen the field of green packaging focusing on the cutting-edge packaging technology and continuously Pharmaceutical Transportation SF innovatively launched circulating temperature-controlled boxes in the pharmaceutical transportation scenarios

increasing investment in research and development of sustainable packaging materials. By optimizing the performance of Scenarios – Pharmaceutical using environmentally friendly materials and temperature-controlled technology to successfully replace disposable

packaging materials breaking through technical bottlenecks and expanding scenario applications the Company strives Temperature-controlled Recyclable foam boxes. Through continuous R&D and material upgrading the number of recycling times has been greatly Box increased. A single use reduces carbon emissions by around 207 g.to build a full-link solution of packaging reduction recycling harmlessness and standardization and set a benchmark in

the green packaging industry. SF cold chain EEP recyclable insulated box is lightweight pressure-resistant non-toxic and environmentally friendly

Cold Chain Transportation Scenarios and is superior to traditional white foam boxes providing a safer and more sustainable packaging option for cold

Reduced Packaging – Cold Chain EEP Recyclable chain logistics. By the end of 2024 the Company had deployed over 500000 cold chain circulation boxes in cold Insulated Box chain transportation scenarios with a cumulative usage of over 4.51 million times reducing carbon emissions by

Minimizing to the Extreme: Downsizing approximately 3022 tons.In order to solve the problem of over-packaging in the express delivery Disposable Sealing Strips

industry from the source SF focuses on front-end packaging reduction and

standardization strategies and promotes packaging technology innovation Recyclable Pallet BoxMade of 100% recyclable PP/PE material it has strong pressure resistance and impact resistance. The nail-free

and material conservation through management practice and technology The polypropylene (PP) disposable sealing design reduces the risk of work-related injuries and reduces the dependence of large industrial and irregular parts

empowerment. In terms of management practice the Company deepened the strips used for bundling small express on traditional wooden frames wooden boxes and wooden brackets. As of the end of the reporting period a total of

implementation of SF Packaging Operation Standards carried out work for packages during transit originally measured more than 370000 recyclable pallet boxes have been put in and recycled for more than 6940000 times.over-packaging and formulated standardized packaging operation manuals

covering all categories of consignments to ensure the strict implementation 41 cm in length. The company's Green

Bulk Transportation Scenarios

of green packaging principles. At the level of technology empowerment Packaging Solutions team reduced the total Recyclable Honeycomb Panels

SF has comprehensively upgraded its smart packaging service platform length of these strips to 38 cm by shrinking Made of 97% recyclable PP material it has outstanding impact resistance and can replace air exhaust or honeycomb

relying on digital tools to efficiently link with the courier terminal collecting the size of the package label attachment area cardboard used for television protection. As of the end of the reporting period more than 30000 recycled honeycomb

feedback from the courier in real time and optimizing the packaging plan and thereby decreasing the weight of each strip by panels have been put into operation and more than 460000 recycled times.guiding the courier in real time through intelligent guidance to standardize approximately 0.6 grams.and rationalize the packaging process of various consigned items effectively π-Box independently developed by SF is made of environmentally friendly PP material and the whole box is 97%

avoiding the problem of over-packaging. This innovative packaging reduction initiative “π-Box” Recyclable Box recyclable eliminating the need for disposable consumables such as tapes and zippers. As of the end of 2024 a

led to a significant decrease in plastic total of 345000 units have been put into operation covering 119 cities and have been recycled more than 7.54

Focusing on the “Fengjing Plan” SF focuses on eight categories of materials consumption with a total reduction of million times.such as plastic bags adhesive tape stickers and seals to carry out approximately 654 tons in 2024.innovative research and development of reduction standardization and

scenario. Through lightweight design and material structure optimization In addition SF continues to strengthen circular technology capabilities optimize internal operations management and

SF significantly reduces the consumption of plastics and base paper. In comprehensively enhance circular efficiency. In 2024 the Company actively built an intelligent recycling platform integrate

2024 through a series of packaging reduction measures SF reduced the cutting-edge technologies such as the Internet of Things (IoT) big data analysis and cloud computing achieve comprehensive

use of base paper by approximately 42000 tons reduce the use of plastics interconnection of logistics systems and promote digital and transparent management of the entire life cycle of recycling packaging

by approximately 155000 tons and achieve carbon emission reductions by materials. In order to overcome the problem of recycling recycled packaging materials the Company innovatively adopts RFID and

approximately 192000 tons. QR code dual tracking system to monitor the packaging trajectory in real time to ensure rapid and efficient recycling operations.Recyclable Packaging Bio-Degradable Packaging

SF deeply integrates diversified business scenarios develops modular In 2024 SF actively deploys the R&D of biodegradable packaging materials cooperates with external scientific research institutions and

recycling packaging containers adapted to multiple scenarios realizes the 19.18 universities continues to deepen cutting-edge technology fields and accumulates professional knowledge and capabilities. By standardized connection between containers and vehicles significantly SF invested a total of million recycling carrying out multi-scenario pilot projects the practicality and feasibility of various biodegradable materials are verified. As of the

reduces product damage rates shortens operation time and improves packaging containers and the cumulative number of end of 2024 SF launched hundreds of millions of fully biodegradable packaging “Feng Bag” providing a practical model for the

operation efficiency. In 2024 SF continuously upgraded its circular large-scale application of green packaging.technology chassis capabilities achieving full lifecycle digital and intelligent cycles exceeded 1 billion times; By providing recyclable

management of circular packaging materials. By introducing RFID (Radio

Frequency Identification) building intelligent allocation models and exploring containers it has served a total of 430000

centralized cleaning models SF has driven comprehensive improvements c u s t o m e r s a n d c o n t r i b u t e d a p p r o x i m a t e l y

in internal management and circular efficiency. At the same time SF hasalso improved the disposal process allowing for orderly recycling and 472000 SF received the certificate of “Quality User of Biodegradable tons of carbon emission reductionregeneration of circular packaging materials at the end of their life cycle. Plastics” leading the innovative practice of green packaging

In the transit package construction process SF comprehensively promotes

recycled woven bags to replace traditional disposable woven bags. At the In November 2024 SF received the “Quality User of Biodegradable Plastics”

same time combined with the demand of bags in the entire network through

the reuse allocation strategy efficient allocation of the entire network is certificate issued by the Degradable Plastics Professional Committee of the China

achieved to ensure the maximum utilization of resources. At present the Plastics Processing Industry Association for its outstanding contributions in the

average number of times a single recycled woven bag is used reaches 54 field of biodegradable plastics commending the Company’s R&D production

times. In 2024 6.34 million new recycled woven bags were launched further and promotion of biodegradable plastics. The outstanding achievements show

expanding the scale of use of recycled woven bags. that the Company has reached the industry-leading level in technological

innovation product quality and environmental performance and has made

Focusing on the diversified needs of customers industry characteristics and

application scenarios the Company has developed and put into use a variety positive contributions to the development of the biodegradable plastics industry.of professional recycling packaging containers including pharmaceutical

precision temperature control boxes cold transportation recycling incubator

boxes large standard recycling enclosure boxes etc. In 2024 SF invested

a total of 19.18 million recycling packaging containers of which 6.26 million

newly put into recycling packaging containers and the cumulative numberof cycles exceeded 1 billion times; By providing recyclable containers it has SF Obtained “Quality User ofserved a total of 430000 customers and contributed approximately 472000 Biodegradable Plastics” Certificate

tons of carbon emission reduction.SF recycling woven bag50 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 51

Green Packaging Standard

Formula Raw Film blowing printing

SF actively builds a green packaging standard system to Material Supply bag manufacturing Transportation Last mile delivery

promote the green transformation of the industry. As of the

end of 2024 SF participated in the compilation and release GRPG Terminal express Waste disposal

of 5 national standards and industry standards including Double E mark outlets/stations

the General Service Specifications for E-commerce Reverse The regeneration Film blowing and bag Waste

Logistics (GB/T 43290-2023) Requirements for Restricting formula manufacturing

The usage collection Consumers

Excessive Packaging of Express Delivery (GB 45186-2024)

Guidelines for the Use of Recycling Packaging of Express

Mail (GB/T 43805-2024) Quality Control Requirements for Provide technical Provide PE Community

Sales of Fruit and Vegetable Products (20101215-T-442) and support for formulation material with drop

Basic Requirements for Express Packaging of Fresh Products design of recyclable traceable quality

(YZ/T 0194-2024). At the same time the book Construction packaging materials and origin

and Practice of Green Standardization of Express Delivery Recycling cleaning and pelletizing

(ISBN 978-7-5026-5483-2 China Standards Press) co-edited Discarded plastic films

by SF was officially published providing theoretical guidance

and case reference for the practice of green standards in the SF “Fengtiao Box” was selected as a green express product Recycling and

industry. demonstration case of China Express Association pelletizing

Provide resource utilization of

SF not only actively promotes the formulation of green packaging standards but also deepens the testing of express logistics the recycled materials

packaging materials the safety verification and evaluation of packaging schemes and the innovative research of packaging

standards by setting up a packaging laboratory testing center. SF Packaging Laboratory Testing Center has comprehensive Manufacturers of

testing capabilities covering 45 packaging categories more than 140 testing standards and 400 items of testing capabilities. plastic products

It has obtained the first batch of “Postal Industry Green Packaging Technology R&D Center” qualifications in the industry.And passed ISTA (International Safe Transit Association) certification and CNAS (China National Accreditation Service for Express Easy Recycling Easy Regenerating Recycling System

Conformity Assessment) certification.By continuously increasing investment in basic research carrying out close cooperation with many universities and

building an expert resource database SF has carried out a number of studies in key fields such as functional packaging

technology fresh food preservation temperature control green technology packaging carbon emission assessment and

national enterprise standard standardization to fill the gaps in the industry. In 2024 SF and Zhejiang University were SF together with GRPG (Joint Working Group on Green Recycled

successfully approved for the “14th Five-Year Plan” national key project Demonstration Application of Cold Chain Logistics Plastics Supply Chain) and upstream and downstream partners

and E-commerce Distribution of Fresh High-Value Agricultural Products focusing on related research on loss reduction and in the industrial chain jointly formulated and published the grouppackaging reduction in agricultural product distribution links and Form an industrialization demonstration. At the same time standard “Implementation Rules for Design Evaluation of Easythe “Fengtiao Box” jointly developed by SF and Tsinghua University successfully replaced the foam box and was selected Recycling and Easy Recycling of Plastic Packaging-Plastic Filmas a green express product demonstration case of China Express Association providing an innovative practice model for Express Packaging Bags and Inflatable Fillers” which stipulated

the green transformation of the industry. Standard the evaluation index system and evaluation method of plastic

establishment film express packaging bags in terms of easy recycling and

easy recycling design and provided clear and operable technical

Promoting Circular Economy guidelines for the industry to produce and use plastic film express packaging bags.SF continues to promote innovative practices in the circular economy fully leveraging its influence and resource integration SF cooperated with upstream and downstream companies to

capabilities. Collaborating with upstream and downstream partners in the industry chain SF builds an efficient and jointly overcome technical problems in express packaging and SF’s “Double E” packaging bag

collaborative recycling and regeneration packaging system through resource sharing technological collaboration and samples were exhibited at the successfully developed “Double Easy” (easy to recycle easy

information exchange. Meanwhile SF actively fulfills its social responsibilities by conducting diverse environmental protection fifth meeting of the United Nations to regenerate bags. This bag maintains excellent mechanical

publicity and educational activities stimulating the public’s enthusiasm and initiative to participate in environmental actions “Plastics Convention” in 2024

and contributing to the construction of “Zero Waste Cities.” Technological

properties while incorporating up to 30% post-consumer recycled

innovation resin (PCR) in compliance with the national standards for express

bags thereby realizing the value of single-material easy recycling.Recycling Express Packages

SF has piloted full-process closed-loop recycling projects for plastic packaging waste in Shanghai andSF regards the recycling of express packaging as a key measure to promote sustainable logistics and explore “Zero Waste joined hands with upstream and downstream industrial chains to collect discarded express bags and recycleCities”. By integrating internal and external resources it comprehensively promotes the closed-loop chain verification and them for granulation. Through technological innovation realize the transformation of high-performance

practice from formulating industry standards and carrying out technical research to realizing express packaging recycling Application products and open up the circulation loop. In 2024 SF successfully completed the batch replacement of

and continuously optimizes the plastic recycling process. Breaking the traditional linear model of “manufacturing-using- Practice approximately 47 million “Double E” packaging bags in Beijing promoting the large-scale implementationdiscarding” the Company committed to building a full life cycle system of “plastic packaging design-production-consump of circular economy.tion-recycling-regeneration-High-value application” to minimize the impact of waste on the environment.52 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 53

Special SF’s “Smart Recycling Bin” Landed in Shenzhen Opening SF “Box” Companion Program: Give Waste Cartons A New Life

Topic a New Practice of Circular Economy

Since its launch in 2020 the SF “Box” Companion Program has continued to advocate the concept of green life

calling on the public to give full play to their creativity and hands-on ability DIY transformation of idle express

On October 30 2024 the “Zero-Carbon Future Prosperous Journey” SF Circular Economy Practice Project and cartons and give waste resources a second life.Smart Recycling Bin Installation Ceremony were held in Shenzhen marking the official launch and use of the first

“Smart Recycling Bin” jointly established by SF and a recycling company. In 2024 the SF “Box” Companion Program enters its fifth year. SF initiated a creative cardboard box transformation

campaign through both online and offline channels encouraging the public to repurpose idle express cardboard

The first smart recycling bin landed at the Shahe large-scale outlet in Xili Street Nanshan District Shenzhen. The boxes into versatile “treasure boxes” for daily life (such as a “spare” box for car travel a “spare” box for home

recyclable categories include waste paper plastic metal fabric etc. SF courier and surrounding residents can storage a “spare” box for pet homes a “spare” box for lifestyle essentials a “spare” box for moving and packing

open the cabinet by scanning the code on their mobile phones. After the waste express packaging is put into the etc.) providing help and inspiration for daily life.cabinet the smart recycling bin can automatically calculate the weight and settle the amount immediately. The

recycling staff will recycle and transport it to the recycling center in time before the box overflows. As of the end SF launched the creative transformation challenge online encouraging users

of December 2024 SF has put 15 smart recycling bins in 15 operation sites in Shenzhen and has recycled a total to share the coup of secondary utilization of cartons by posting pictures

of 3905 kg of waste materials. and videos displaying creative transformation works and promoting the

widespread dissemination of green concepts on social platforms. At the

As the industry’s first new end-of-terminal recycling model this project takes the lead in implementing extended same time Nanjing Chongqing and Changsha carried out offline limited-time

producer responsibility promoting the “integration of two networks” of renewable resources and promoting efficient pop-up activities and built creative devices and photo walls with express

waste recycling. At the same time the demonstration effect of point-to-area enhances social environmental cartons so that the public could immerse themselves in the practical value

awareness and provides an innovative practice model for the industry to deepen the refined management of and environmental protection beauty of cartons.sustainable packaging and improve the recycling chain.Over the past five years the “Box” Companion Program has empowered

environmental protection with creativity and transformed green concepts

into vivid practices. It not only provided the public with an interesting way

to participate in environmental protection but also became an innovative

model for SF to practice sustainable development and lead a green lifestyle.SF “Box” Companion Program

SF × Nike “New Life for Old Shoes” Program: Make the

Graduation Season More Meaningful

SF collaborates with recycling companies to deploy smart recycling bins at the end-point express delivery outlets

In June 2024 SF and Nike joined hands with 53 universities across the country

to launch the “Old Shoes Recycling * Easy Start” graduation season special

event to provide college students with a green practice platform for recycling

old things.Cultivating Public Awareness of Environmental Protection SF was responsible for campus promotion and logistics support for old shoes recycling providing discount coupons and customized woven bags

for graduation season for students who participate in used shoes donation

SF actively conveys the concept of green environmental protection in society and is committed to building an environmental combining environmental protection actions with graduation delivery needs

protection ecosystem that involves public participation. By planning and carrying out various forms and rich contents of so that students can not only participate in public welfare but also enjoy

environmental protection themed activities the Company continues to stimulate the public’s attention and enthusiasm for benefits. This innovative model not only stimulates students’ enthusiasm

participation in environmental protection in innovative ways and promote the transformation of environmental awareness for participation but also rejuvenates old shoes transforms them into

from concept to action. From the “Zero Carbon Star Wish” public welfare video to the green carbon energy platform from environmentally friendly materials for sports venues.the carton renovation activities of the SF “Box” companion program to the “New Life for Old Shoes” program in universities

SF integrates the concept of environmental protection into the daily life of the public in diversified interactive forms. Guide The “New Life for Old Shoes” program integrates the concept of environmental

all sectors of society to jointly practice green lifestyles and inject strong impetus into promoting the whole society to jointly protection into the graduation season of universities through interesting and

build a “zero-carbon future”. scene-based design which has become another innovative practice of SF

to promote the popularization of green lifestyle and injects new vitality into SF × Nike “New Life for Old Shoes”

environmental protection education in universities. Recycling Program54 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 55

Practice Green Operation SF has established a sound environmental management system and energy management system and continues to promote the completion of environmental and energy management system certification in each business segment. As of the end of

the reporting period all of the Company’s main business segments have passed the ISO 14001 environmental management

system certification. In addition SF Airlines has obtained ISO 50001 Energy Management System Certification and RB/T

SF has always implemented the green development concept of environmental protection and resource friendliness fully 104-2013 Energy Management System for Transport Industry Enterprises.integrated the low-carbon concept into office operation scenarios continuously improved the environmental management

system formulated and implemented the Measures for the Management of Water and Electricity in Property Sites and the

Measures for the Management of Regional Office Space Use scientifically and rationally utilized resources strengthened ISO 14001 Environmental Management System

emission management continuously improved employees’ awareness of environmental protection jointly created a green

office environment and built a resource-saving enterprise.Improving the Environmental Management System

SF strictly complies with laws and regulations related to environmental protection such as the Environmental Protection

Law of the People’s Republic of China and the Pollution Prevention and Control Law of the People’s Republic of China

and continues to improve its environmental management system to ensure environmental compliance. The Company

formulated the Regulations on the Management of Identification and Evaluation of Environmental Factors standardized

the process of identification of environmental factors clarified the principles of evaluation of environmental factors and

strictly controlled important environmental factors through the Form of Identification and Evaluation of Environmental

Factors. In view of the potential environmental risks in the process of business operation the Company regularly conducts

risk assessment formulates preventive measures and continuously improves the emergency response mechanism for

environmental emergencies to ensure that it can respond to environmental emergencies quickly orderly and efficiently

and effectively control mitigate and eliminate environmental risks.The Company has formulated the Environmental Policy to ensure that environmental protection measures are actively

taken in daily operation activities reduce the impact on the environment and earnestly fulfill the Company’s commitments

in sustainable development and green operation. During the Year SF did not have any major environmental incidents and

was not subject to any major administrative penalties due to environmental issues.SF’s commitment to environmental protection:

● Strictly abide by all applicable environmental-related laws regulations and industry regulations in the

location of operation such as the Environmental Protection Law of the People’s Republic of China

and the Pollution Prevention and Control Law of the People’s Republic of China and clearly define

the responsibilities of relevant business departments of the Company in the process of implementing

environmental policies to ensure the effective implementation of policies.● Actively adopt diversified energy conservation and environmental protection measures for different

business scenarios minimize the impact of all operational activities on the environment and improve

the Company’s environmental and energy performance.● Committed to setting and continuously optimizing specific targets and indicators in the fields of water

resources management waste treatment and energy utilization to reduce adverse impacts on the

environment and promote environmentally friendly operations.● Actively communicate and cooperate with partners customers and other stakeholders in the upstream

and downstream of the value chain in environmental protection and strive to enhance the understanding

and recognition of the Company’s environmental management work by all stakeholders.● Actively organize environmental education and training to ensure employees understand the specific

impact of daily work activities on the environment and enhance employees’ environmental awareness

and sense of responsibility.The Strategy Committee of the Board of Directors/Sustainable Development Working Group is responsible

for supervising and ensuring the implementation of the above commitments.Suzhou Fengyutai Enterprise Management Co. Ltd

Shenzhen Chengfeng Business and Enterprise Services Co. Ltd

Shenzhen Xingshun Intelligent Supply Chain Co. Ltd

Wuhan SF Zhida Logistics Co. Ltd

Shanghai Shunxiaofeng Distribution Co. Ltd

Zhejiang Shuangjie Supply Chain Technology Co. Ltd

Shenzhen SF International Supply Chain Management Co. Ltd

SF Multimodal Transportation Co. Ltd

Shenzhen SF Comprehensive Logistics Service Co. Ltd

Jiangxi Fengyu Shuntu Technology Co. Ltd

Fengyi Technology (Shenzhen) Co. Ltd

GZ SF Pharmaceutical Supply Chain Co. Ltd

Shenzhen Fenglang Supply Chain Co. Ltd

Shenzhen SF Freight Co. Ltd

Guizhou S.F. Express Co. Ltd

S.F. Express Group (Shanghai) Express Co. Ltd

S.F. Express Co. Ltd

Shenzhen S.F. Taisen Holding (Group) Co. Ltd56 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 57

Waste Management Specific water saving measures include:

SF places great emphasis on waste management during its operations. In line with business development and the realities Equipment inspection and Optimize water use for Rainwater recycling Carry out water-saving of daily operations the Company sets the core goals of waste reduction at the source and enhancing the capacity for waste maintenance greening publicity

recycling. Company has formulated and fully implemented the waste classification system set up clear classification signs

in office areas and operation sites and formulated clear treatment procedures for different types of waste to ensure that

waste is properly disposed of and promote the full implementation of green operation. In 2024 the Company recycled 41

million used cartons and dispose of 900 tons of used work uniforms. Implement a regular Promote advanced Bui ld an outdoor Post water-saving signs

equipment inspection water-saving irrigation rainwater reuse pool at water points in office

mechanism to promptly technologies adjust in the industrial park and operation areas

discover and solve and optimize irrigation and use the recycled and regularly update

General waste Recyclable waste Hazardous waste hidden dangers of modes to replace rainwater for greening publicity content to

water leakage ensure t r a d i t i o n a l f l o o d i r r iga t ion garage enhance employees’

that all water facilities irrigation methods and cleaning and road awareness of water-

For general wastes such as Recyclable wastes such as paper Hazardous wastes such as waste maintain good operating improve greening water washing to reduce tap saving and guide all conditions effectively efficiency. water consumption. employees to develop

domestic garbage discarded products and used work clothes lamp tubes batteries waste prevent the phenomenon good water habits.stationery and paper shreds are collected in designated areas printer ribbons/toner cartridges of “running leakingafter classified collection they and according to the actual etc. are collected centrally by dripping and leaking” and

are promptly transported to situation of recyclables qualified the Company and then handed reduce the waste of water

the designated waste storage recyclers are contacted in a timely over to third-party organizations resources.location handed over to the manner for door-to-door recycling with professional qualifications

sanitation department for so as to maximize the utilization for unified recycling.treatment and the treatment of resources.situation is recorded in detail. Energy Utilization

As an industry leader in sustainable development SF is well aware of the importance of energy utilization efficiency and

clean energy transformation in reducing environmental impact and promoting green development of the industry. Energy

In addition the Company actively carries out waste classification training activities to comprehensively strengthen utilization has risen from hidden costs to a significant factor that embodies both risks and opportunities profoundly

employees’ awareness and practical level of waste classification. The training content covers basic knowledge of waste impacting the company’s business model daily operations long-term strategy operational performance cost control and

classification practical operation procedures relevant laws regulations and policy requirements etc. helping employees other aspects. Based on its own operating characteristics the Company has gained insight into the energy-saving potential

to fully grasp the key points of waste classification and integrate the concept of green office into their daily work. As of in various aspects of business operations continuously optimized the energy management system. By gradually improving

2024 SF has set up more than 110 garbage classification and recycling points in various industrial parks and organized the energy structure reducing the use of fossil fuels and exploring application scenarios for clean energy the company

23 training sessions on various types of garbage classification. promotes efficient energy use and green transformation setting a benchmark for sustainable development in the industry.

Noise and Exhaust Management Governance

In order to ensure the compliance of noise and exhaust gas emissions the Company actively carries out the identification SF strictly abides by the Energy Law of the People’s Republic of China the Energy Conservation Law of the People’s

evaluation and management of exhaust gas and noise to reduce the impact of operations on the surrounding environment. Republic of China and other relevant laws and regulations and continues to improve its energy management system.In 2024 SF did not experience major administrative penalties or criminal responsibilities due to pollutant discharges. Relying on the sustainable development governance structure the Company deeply integrates energy utilization into the

ESG management system to ensure that energy management is closely integrated with the overall sustainable development

In terms of noise pollution control SF gives priority to glass materials with noise reduction and sound insulation performance strategy.during the construction and operation of office buildings and upgrades some equipment. In the planning and management

of the industrial park the company fully considers the actual situation of the geographical environment and population As the decision-making body of sustainable development management the Strategy Committee of the Board deeply

distribution of the area where the industrial park is located and scientifically designs and installs sound insulation walls participates in the discussion and research on important issues such as energy efficiency improvement and clean energy

around the park to effectively isolate and reduce noise interference to the surrounding environment. transformation continuously identifies risks and opportunities related to energy management and promotes the formulation

and implementation of energy utilization strategies and goals from top to bottom. At the executive level key business

In terms of exhaust emission control SF strictly follows relevant national regulations and implements a strict vehicle access departments related to energy management formulate energy management rules and regulations that fit their own business

mechanism to ensure that all purchased vehicles meet environmental emission standards. In addition by implementing development characteristics according to the Company’s energy management strategies and objectives. At the same time

a regular annual inspection system the Company comprehensively monitors vehicle exhaust emissions to ensure that all in order to ensure the effective promotion of energy management relevant business departments regularly report the

vehicle exhaust emissions meet standards and reduce the emission of air pollutants. progress of energy management related objectives to the management so as to adjust strategies in a timely manner and

ensure the efficient and orderly progress of energy management.Water Resources Management

Strategy

SF has formulated water use management systems such as the Measures for the Management of Water and Electricity

in Property Sites to standardize water use behaviors. The company sets water-saving targets aimed at maximizing water Under the background that the world is actively implementing the concept of green development and energy transformation

reduction and enhancing water efficiency. By strengthening the maintenance of water facilities and promoting water-saving has become the trend of the times scientific management of energy is crucial to the sustainable development of enterprises.concepts SF enhances employees’ awareness of water conservation controls water consumption improves the efficiency In order to identify and evaluate the impact of risks and opportunities related to energy utilization on the company SF sorts

of water resource utilization and achieves water savings. The Company’s sources of water are all municipal water and out and identifies risks and opportunities related to energy management from multiple dimensions such as impact degree

it does not involve the use of large quantities of water or the discharge of wastewater in the course of its operations nor and time range through extensive industry research and stakeholder communication based on the business development

does it engage in products and businesses that are prone to cause pollution to water resources. layout and characteristics and deeply analyzes the characteristics and optimization direction of the company’s energy

consumption structure thus providing strong support for the company to formulate a scientific and reasonable energy

management strategy.58 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 59

Type of risk/opportunity Time range Potential financial impact Countermeasures Risk Management

SF deeply integrates ESG risks including energy utilization into the enterprise risk management framework establishes a

● Develop and apply green technologies to help enhance comprehensive management mechanism and process for energy utilization risk identification assessment control and supervisionquality and efficiency and reduce carbon emissions across and constructs a closed-loop risk management process of “risk environment analysis – Goal setting and risk identification of riskend-to-end aspects of the supply chain. control -risk assessment-risk response-supervision and improvement” to ensure that energy utilization-related risks are effectively

– Transfer link: Optimize warehousing resource identified managed and disclosed.allocation based on data introduce fully automated

sorting and site management systems and As the highest decision-making body for risk management the Risk Management Committee of the Board is responsible for

enhance the efficiency of warehousing and transfer identifying preventing and monitoring ESG-related risks including energy utilization and formulating corresponding risk response

operations thereby improving energy utilization

efficiency; strategies; As a subordinate body of the Risk Management Committee of the Board the Risk Committee is responsible for reviewing the risk management system system process authorization major risk prevention and response measures including energy

– Transport link: Intelligent maps are used to plan utilization risks. In order to effectively implement the countermeasures against energy utilization risks the Company continues

transportation routes and the optimal route solution is to promote the improvement of the energy management system of key business departments according to the actual operation

provided through intelligent algorithms in combination

● With the increasing demands for situation so as to ensure the orderly progress of energy management.with factors such as express timeliness and distance.clean energy utilization and energy At the same time relying on data analysis and deep

efficiency both domestically and learning technology it integrates freight routes and

internationally and the increasingly Risk environment analysis

Pay attention to and analyze changes in the internal and external environment brought about

transportation resources to achieve accurate matching by energy utilization efficiency energy transition etc.Short-term stringent energy-related policies and of vehicles and goods and improve transportation

Policy Medium-term regulations companies may need to efficiency; Goal setting and risk Combined with the risk control targets set at the Company level identify and sort out the

Long-term invest more funds and technologies identification of risk control list of energy-related risks.to improve the energy use structure – Terminal collection and dispatch link: through

and efficiency thereby increasing the application of intelligent technology expand Based on the possibility of risks related to energy utilization and the degree of impact on

compliance costs and operating the scope of business delivery and provide Risk assessment the company’s goals the identified risks are prioritized and the risks to be focused on and

costs. efficient economical and low-carbon logistics and prioritized for management and control are determined.transportation services;

Transformation ● Maintain a high level of attention to the dynamics of The Board comprehensively considers the risks and benefits brought by energy transition

risks policies and regulations related to external energy Risk responses brand reputation and social responsibility and other factors and review and formulate

management organize professional teams to continuously effective risk response plans based on risk analysis.track the updates of policies and regulations and the

changing trends of industry standards and make strategic Continuously follow up monitor and manage the disposal of risks related to energy

deployments in advance; Supervision and improvement utilization. In daily work continuously optimize the energy management capabilities by strengthening the use of clean energy and improving energy efficiency.● Actively carry out training on energy saving and

consumption reduction formulate incentive plans for fuel

saving and energy saving and stimulate employees’

enthusiasm and initiative to participate in energy saving Metrics and Targets

actions.Efficient utilization and scientific management of energy are not only key indicators to measure the Company’s environmental

performance but also core elements to achieve sustainable development strategy. As a leading enterprise in the logistics

● Actively explore various energy forms such as solar industry SF has always regarded energy management as its core work reduced energy consumption through continuous

energy and hydrogen energy build a scientific reasonable

stable and efficient energy supply system and reduce technological innovation actively promoted the application of renewable energy accelerated the substitution of fossil energy and

● Fluctuations in the market prices of dependence on a single energy source; comprehensively promoted the transformation and upgrading of the energy structure.clean energy (such as sustainable

Short-term aviation fuel SAF green electricity ● Continue to gain insight into the dynamics of the global The company has established an indicator system with efficient energy utilization as the core and continuously improves the

Market Medium-term etc.) and fossil fuels (such as energy market implement diversified procurement level of energy management through dynamic monitoring and continuous optimization. The Company regularly evaluates energy

Long-term gasoline diesel etc.) may lead strategies select cost-effective energy suppliers from

to increased transportation and the dimensions of price competitiveness quality stability

utilization performance to ensure the achievement of goals and promotes the continuous improvement of energy utilization

warehousing costs for companies. supply reliability and sustainable development practices

efficiency through refined management laying a solid foundation for achieving green and low-carbon development.and establish long-term stable mutually beneficial and

win-win cooperation relationship to ensure efficient and

stable energy supply. Indicator Progress of action Short and medium-term future planning/goal setting

● According to the operation situation and site conditions As of the end of 2024 SF had a total of 35 industrial park It is expected that all photovoltaic projects

expand the construction of distributed photovoltaics in photovoltaic projects in operation and construction with a will be completed and put into operation

● With the rapid development of the industrial park in an orderly manner and realize the total installed capacity of 145 MW. by the end of 2025. It is estimated thatemerging energy industries such electricity consumption mode of “self-use and surplus the total installed capacity of photovoltaicas new energy vehicles and solar electricity on the grid”; In 2024 the construction of rooftop photovoltaic power equipment in the industrial park will reach

Products Short-term photovoltaics the transportation Clean energy stations in 24 industrial parks has been completed with an 170 MW and the annual power generation

and Medium-term demand of new energy products in ● Keep up with the development trend of new energy overall installed capacity of more than 111 MW. The annual will exceed 140 million kWh.Opportunity Services Long-term the logistics market has increased technology conduct in-depth research on technological renewable energy power generation exceeds 70 million

significantly which will help increase breakthroughs and application potential in key fields such kWh and clean energy usage exceeds 42 million kWh.the company’s revenue in new as sustainable aviation fuel SAF and new energy vehicles

business areas. explore the application scenarios of new energy technology

in logistics and transportation and further enhance the In order to comprehensively improve energy efficiency and ensure the realization of energy utilization targets the Company

company’s low-carbon transportation capabilities. systematically promoted a series of energy conservation and consumption reduction measures and achieved remarkable

results.60 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 61

SF Forest

Industrial park lighting optimization: based on the analysis of energy consumption data in public areas of each park SF implemented

energy-saving renovation for 23 industrial parks with high lighting energy consumption in public areas. Significantly reduce lighting

energy consumption in public areas by replacing intelligent sensor switches and energy-saving lamps. As of the end of the Reporting Since 2020 SF has continued to carry out the “SF Forest-Carbon Neutrality” project (referred to as “SF Forest”) as the company’s

Period the replacement of 234 lighting sensor switches and 678 sets of energy-saving lamps has been completed. innovative exploration in the field of carbon neutrality. The project is based on online “SF forest” application and offline Energy-saving carbon-neutral forest planting and has set up nature reserves in Xizang and Sichuan to collaboratively promote climate change

equipment Intelligent electrical box deployment: operating sites are equipped with intelligent electrical box systems to accurately identify power response and biodiversity protection. At the same time SF advocates the concept of “zero carbon” to employees customers and

transformation waste during idle periods through real-time power consumption data collection and analysis and combine automatic timing control the public through community care and public welfare publicity and is committed to becoming a leader in the field of sustainable

and manual intervention to effectively reduce unnecessary power consumption. By the end of 2024 779 outlets had completed the development.deployment of intelligent electric boxes saving 3.676 million kWh of electricity annually equivalent to reducing carbon emissions

by 1973 tons. Carbon Neutral Forest Planting

Through scientific planning and careful implementation SF forest not only effectively offsets greenhouse gas emissions but

also promotes ecological protection and restoration and improves forest ecosystems. Through multi-party cooperation with the

government enterprises and social organizations SF has explored a path of green development with multi-party participation

Equipment upgrade and management: comprehensively promote energy-saving office equipment (such as computers and printers) win-win innovation multiple benefits and local benefits in the fields of climate change response and ecological protection and Energy

optimize the number of equipment configurations and reduce standby energy consumption. At the same time a strict electricity restoration. In 2024 the company successfully completed the planting tasks of carbon-neutral forests in Sichuan Seda Phase II Saving

consumption system is formulated requiring employees to turn off the power supply when the equipment is not in use for a long and Hebei Laiyuan projects with a cumulative planting area of 990 acres and a total of 660290 trees planted. At the same time in Office

time cut off the power in time after charging is completed and ensure that the power supply of all office equipment is turned off the Sichuan Seda Phase I carbon neutral forest project also successfully passed the third-party verification and acceptance. The Equipment

after work to avoid waste and potential safety hazards caused by overcharging. afforestation area verification rate reached 100% the overall tree survival rate reached 85% and the afforestation tree species afforestation density and infrastructure all met the established requirements. It fully proves the scientific and standardization of

project implementation.Energy As of the end of 2024 SF Forest has planted more than 1647 acres of carbon-neutral forests in Hebei and Sichuan

monitoring Intelligent monitoring system: Establish a complete energy monitoring and management system install intelligent energy metering

management instruments in office areas and track power consumption data in real time. Through data analysis we can accurately identify energy with a total of more than 1 million trees planted. These trees are expected to absorb more than 200000 tons of waste links formulate targeted improvement measures and realize the refinement and intelligence of energy management.carbon dioxide in the future growth process contributing to mitigating global warming and helping to restore and improve

local ecosystems.Safeguarding Ecological Environments

SF has always adhered to the concept of green development and is committed to achieving the harmonious coexistence

of corporate development and ecological environment protection. By vigorously promoting a number of green operation

initiatives and actively participating in diversified environmental protection actions we strive to reduce the impact of our

own operations on the natural environment and biodiversity fulfill our commitment to green development with practical

actions and contribute to building a beautiful homeland where humans and nature coexist harmoniously.Conservation of Biodiversity

Biodiversity is not only the cornerstone of the stable operation of ecosystems but also the key support for the sustainable

development of human society. SF actively promotes biodiversity conservation refers to and adopts the Biodiversity

Impact Assessment Tool (BIA) and the Biodiversity Risk Filter (BRF) developed by the World Fund for Wildlife (WWF) to SF carbon neutral forest planting site

identify and pilot evaluate the degree of direct or indirect correlation between the company’s main industrial park operation

sites and nature. Among them according to the monitoring results of the Biodiversity Impact Assessment (BIA) tool the SF Forest Online Application

company maintains a sufficient safe distance between major domestic industrial parks and nature reserves9 and the

potential impact of the company’s operating activities on the surrounding protected areas is manageable and controllable. SF deeply integrates green concepts with Internet technology and launches the “SF Forest” online application since 2021

within the range of control. creating a new model of environmental protection interaction. Users can participate in environmental protection actions through

online “Cloud tree planting” and track the cultivation process growth trajectory and environmental protection results of forests

SF is deeply aware of the important value of the ecological environment to the sustainable development of enterprises in real time. The application has built-in rich interactive functions such as measuring carbon emissions tree adoption and

human well-being and earth health and is committed to optimizing site selection reducing noise pollution carrying out cultivation and stimulates users’ enthusiasm for participation through the task reward system.forest planting restoring and protecting ecosystems in the planning and operation of major operating sites and striving

to reduce the risk of damage to biodiversity and implementing conservation actions.As of the end of 2024 the “SF Forest” online application has attracted more than 120000 users to participate

9 The nature reserve here includes national parks nature reserves and natural parks as well as world natural heritage and internationally

adopted more than 100000 saplings. These saplings which carry the love and expectation of users will be planted

wetlands of international importance. The relevant scope is delineated according to the Guiding Opinions on Establishing a Nature Reserve

System with National Parks as the Main Body the Convention Concerning the Protection of the World Cultural and Natural Heritage and the on the ground adding more green vitality to the earth.Ramsar convention.62 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 63

Biodiversity Public Welfare Activities Addressing Climate Change

At a time when biodiversity conservation has become a global development consensus SF actively fulfills its corporate

social responsibility and focuses on the protection of ecological functional areas and endangered species. Through

comprehensive scientific investigation we find out the background data of resources strengthen the protection of key Climate change is a major challenge of the whole world and its impact has profoundly touched all social and economic fields. As

ecological functional areas and rare and endangered species maintain ecological balance and continue to explore new an important promoter of the green and low-carbon transformation of the logistics industry SF deeply understands the urgencymodels of biodiversity protection. and complexity of climate change continues to pay attention to the risks and opportunities brought by climate change and is committed to building a sustainable logistics supply chain. The Company actively responds to the national “Carbon Peak andSF works closely with scientific research institutions and social organizations integrates resources from all parties deploys Carbon Neutrality” strategy and the 1.5 degree Celsius temperature control target of the Paris Agreement refers to the framework

biodiversity conservation projects in Sichuan Xizang and other places and promotes biodiversity conservation to a new of the Task Force on Climate-related Financial Disclosures (TCFD) incorporates climate change issues into the corporate

height. governance system comprehensively considers the development trend of policies industries markets and technologies carries out systematic identification and analysis of climate risks and opportunities continuously strengthens climate risk management

promotes green operation transformation and promotes sustainable development.Comprehensive Pilot Project of Wildlife Protection and

Ecological Development in Southeast Xizang Governance

In 2024 the SF Foundation launched in-depth cooperation with the SF is deeply aware of the far-reaching impact of climate change on the company’s strategic planning and business operations

Shanshui Nature Conservation Center to jointly open a new chapter in and regards climate change governance as an important part of the environmental social and governance (ESG) system. The

ecological protection in Medog County and Zayu County of the Xizang Strategy Committee of the Board is responsible for supervising and managing various sustainable development matters including

Autonomous Region. The two sides planned to integrate resources climate change response incorporating climate risks and opportunities into the Company’s strategic planning and formulating

in the next three years and laid a solid foundation for the smooth corresponding management measures. In order to ensure the effectiveness of the implementation of various measures the

development of scientific research and local ecological protection Company has incorporated quantitative indicators related to climate change into the performance appraisal system at all levels

work by implementing animal monitoring surveys and background to promote the continuous improvement of the Company’s ESG governance level.resource surveys organizing community patrol teams establishing

pilot projects for human-animal conflicts and building a popular

science education system in protected areas. SF Climate Change Related Incentives

SF Forest Project Team Investigation on

Biodiversity in Southeast Xizang

Management General Staff

SF’s management compensation is linked to SF formulated and implemented the Fuel Consumption Lump Sum

climate change-related performance to facilitate Plan for Operating Vehicles scientifically set fuel consumption Sichuan Seda Nianlong Nature Reserve White-Lipped Deer and accelerate the implementation of SF’s climate standards according to different business scenarios clarified fuel

Public Welfare Protection Project commitments and goals. consumption targets refined fuel consumption reward and penalty

rules provided targeted incentives to drivers improved vehicle

transportation efficiency and achieved energy conservation and

Starting from 2023 the SF Foundation has cooperated with the China Green Carbon Foundation to begin the consumption reduction goals.strategic deployment of biodiversity conservation actions. After more than a year of careful preparation in July

2024 the two parties launched the “White-lipped Deer Biodiversity Special Protection Project” in the Nianlong

Provincial Reserve in Garze Prefecture Sichuan Province. Through the implementation of comprehensive

scientific investigations they found out the local biodiversity resources. Basic data provide scientific basis for

white-lipped deer public welfare protection actions.White-lipped deer in Seda Nianlong Nature Reserve Sichuan64 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 65

Strategy

The Board of Directors acting as the highest decision-making

The Board of Directors body for SF’s sustainable development and response to SF comprehensively assesses short-term (0-2 years) medium-term (2-5 years) and long-term (5-10 years) climate risks and

climate change is responsible for the strategy development opportunities and closely integrates risk management measures with the company’s strategic goals and action plans. Since

supervision and policymaking on ESG and climate change the risks and opportunities brought by climate change are usually long-term complex and uncertain the Company applies

issues to ensure the implementation departments take scenario analysis methods to evaluate the climate risks and their financial impacts under different global temperature rise

effective measures to address ESG risks and impacts of scenarios including low emission and high emission scenarios which provide scientific basis for the Company to formulate

Salary and Risk climate disasters. The Strategy Committee delivers ESG forward-looking and flexible risk management strategies.Audit Strategy Nominating

assessment management and climate goals and regularly discusses trends risks and committee Committee committee

committee committee opportunities to keep information updated. Meanwhile SF

has incorporated carbon reduction targets into its corporate Physical Risk

strategy tracked them as a key issue to follow up and linked

them with management performance to ensure effective Physical risks refer to the impact of changes in climatic conditions on the Company’s operation and development including

implementation of ESG and climate governance. acute physical risks (such as typhoons floods etc.) and chronic physical risks (such as rising average temperature). In

2024 SF conducted a comprehensive risk screening based on the two Shared Socioeconomic Pathways (SSPs) in the

Sixth Assessment Report (AR6)10 of the United Nations Intergovernmental Panel on Climate Change (IPCC)-SSP1-2.

6 (low emission scenario) and SSP5-8. 5 (high emission scenario) systematically analyzed the potential impact of key

Supervision & guidance Periodic reporting physical risks on company operations and finance covering temperature rise sea level rise changes in the frequency and

intensity of extreme weather changes in precipitation and so on and provided data support for the resilience building of

The Sustainability Leadership Team composed of Chief infrastructure and operational networks.Strategy Officer (CSO) Chief Financial Officer (CFO) Chief

Operating Officer (COO) and Chief Human Resources Officer

(CHO) reporting to the Strategy Committee of the Board of Scenario Scenario Scenario Source Scenario Application 11

Sustainability Leadership Group Directors is responsible for setting and regularly reviewing Type Selected Description

Scenario Forecasting

ESG and climate change related targets to ensure that ESG

and climate related risks are fully considered and addressed Low SSP1-2. 6 Intergovernmental It has rapidly transformed * Average temperature12:

with SF’s decisions investments and operations. emission Panel on Climate from an economy that relies will increase by 1.9°C

scenarios Change (IPCC) on fossil fuels to an economy * Average Sea level13: will

Sixth Assessment driven by renewable energy rise 0.2m

Report (AR6) and many countries have begun * Extreme weather14:

to implement strong climate frequency and intensity

Overall planning Daily reporting mitigation measures to control will increase to some

global warming in this century extent

from not exceeding 2.0 °C before * Total precipitation15: will

the industrial revolution (1850). increase by 1.3%

As a professional working body the Sustainable

Development Working Group is composed of representatives

from the Office of the Board of Directors various functional High SSP5-8. 5 Intergovernmental Due to the continued extraction * Average temperature: will

departments involved in sustainable development word BGs emission Panel on Climate of fossil fuels as the primary increase by 2.7°C

(Business Group) and BUs (Business Unit). It is specifically scenario Change (IPCC) energy source to drive global * Average Sea level: will

Sustainable Development Working Group responsible for coordinating the implementation of ESG Sixth Assessment economic growth greenhouse rise 0.3m

and climate change-related work ensuring the effective Report (AR6) gas emissions are expected to be * Ex t reme wea the r :

uploading and issuing of tasks and reviewing the risks and at high levels until 2100 which frequency and intensity

opportunities related to climate change. may exacerbate the occurrence will significantly increase

of extreme weather events. * Total precipitation: will

increase by 1.6%

Coordination in

implementation & Daily reporting

promotion Under the high emission scenario the company faces the greatest impact of physical risks so the company conducts

physical risk analysis under this scenario:

In order to effectively implement and perform ESG and

climate-related management work all business and functional

departments of SF do a good job of ESG and climate risk

identification and carbon emission accounting in accordance

Business and Functional Departments with established management indicators and mechanisms

10 The data from the IPCC models focus on the field of climate science and its physical impacts enabling detailed projections of the physical

implement climate change risk management measures in consequences of climate change. This information is particularly valuable for assessing the physical risks to the natural environment and

business activities and implement energy conservation infrastructure under changing climatic conditions.and emission reduction work plans to ensure that ESG and 11 Source: Intergovernmental Panel on Climate Change (IPCC) Working Group (WGI) Sixth Assessment Report and CMIP6 climate models.climate governance work is comprehensively improved. 12 Refers to the change of Chinese average temperature by 2050 compared with 1850-1900.

13 Refers to the change of Chinese mean sea level height by 2050 compared with 1955-2014.

14 Refers to the changes in the frequency and intensity of extreme climate in China by 2050 compared with 1850-1900.

SF Sustainability Governance Structure 15 Refers to the change of Chinese total precipitation by 2050 compared with 1850-1900.Implementation Daily Management Decision-making Supervision66 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 67

Type of Risk Risk Factors Period of Influence Impact of Value Chain Degree of Impact Countermeasures

Acute risk Typhoon Short term medium term Logistics and operations Medium to high For transit depots warehouses and industrial parks located in low-lying areas a comprehensive inspection of drainage and long term facilities is carried out in advance and drainage renovation projects are implemented according to local flood control

standards to effectively deal with potential flood risks.Risk Analysis On the basis of the news released by the China Meteorological Administration and the Ministry of Water Resources SF’s

command and security center issued emergency plans such as the Emergency Response Plan for Flood Control and the

In the logistics transit phase SF has a large number of domestic and foreign self-operated and agency outlets transit Abnormal Weather Response Plan to the whole network through emails and other forms of communication so as to prevent

depots logistics industrial parks and warehouses. Extreme weather events such as typhoons may cause strong winds the safety risks brought by the flood season by making work arrangements in advance including organizing activities

and heavy rains resulting in damage to the facilities of the transit depots such as roof damage transit equipment failure for safeguards daily precautions (personnel safety parcel safety driving safety site safety and materials reserve) and

and so on which in turn affects the normal operation of the transit depots and increases maintenance costs and operating responses during different processes.costs.In the logistics and transportation phase SF provides customers with domestic and cross-border logistics and Type of Risk Risk Factors Period of Influence Impact of Value Chain Degree of Impact

transportation services through various transportation modes such as air road and railway. A major typhoon event may

cause disruption to overall logistics transportation resulting in goods being stranded at transit depots or warehouses Average

and not being able to reach their destinations on time thereby increasing logistics performance risks and resulting in Chronic risk temperature rise Medium to long term Operations Medium to High

loss of revenue.Risk Analysis

Countermeasures

Global warming will cause an increase in average temperatures adversely affecting SF’s operations.In the process of site planning and construction fully assess the risks of strong winds and heavy rains that may be caused

by typhoons and avoid multi-slope pavement design on the premise of complying with local building codes to reduce the

possibility of forming inward gullies under heavy rainfall conditions.Formulate a complete emergency plan reserve sandbags generators drainage pumps helmets and other emergency

supplies at each operation site in accordance with the system requirements and regularly check the operation of facilities

and equipment and the reserve of emergency supplies.In the field of air transportation SF Aviation has set up a meteorological seat in the Aviation Operation Command Center

to release weather warning and forecast information in real time accurately assess the intensity scope and impact

period of severe weather and timely transmit relevant information to operational support departments such as the units

responsible for dispatching and releasing goods providing scientific meteorological support for flight decision-making

adjustment.Type of Risk Risk Factors Period of Influence Impact of Value Chain Degree of Impact

Acute risk Flood Short term medium term and long term Logistics and Operations Medium to High

Risk Analysis Long-term changes in global average temperature under high emission scenarios

Global warming will lead to rising sea levels and total precipitation thus increasing the risk of floods.The continuous rise in temperature has a significant impact on the work efficiency of outdoor workers (such as couriers).High temperature environments can cause employee fatigue heat stroke or other health problems which can reduce work

productivity. At the same time the implementation of high temperature subsidies and working environment improvement

measures may further increase operating costs.High temperature weather may also have an impact on cold chain logistics systems (such as cold storage and refrigerated

transport vehicles) resulting in increased refrigerant usage thus increasing refrigeration costs.High summer temperatures and changes in temperature differences within the area covered by the business may adversely

affect the storage and transportation conditions of consignments thereby increasing the risk of potential loss of revenue.Countermeasures

By integrating external weather forecast information we gradually build and optimize the weather monitoring system

release high temperature warning indicators in advance and help staff take countermeasures in advance to reduce the

risks caused by extreme high temperatures.We implement safety and health protection measures for high-temperature operations including equipping portable fans

and other cooling equipment implementing special ventilation and cooling renovation projects scientifically arranging

Long-term changes in global sea level under high Long-term changes in global total precipitation under high work and rest times and so on to reduce the potential hazards of extreme high temperatures to employees’ health.emission scenarios emission scenarios Based on the national urban temperature data and routing data an ambient temperature analysis model is established

to divide the country into different temperature zones and differentiated temperature control materials and composite

In areas with high incidence of flood disasters the transit depots warehouses and industrial parks operated by the company temperature control technologies are adopted according to the characteristics of each temperature zone to form a

may face the risk of flooding resulting in flooding inside or surrounding areas of the warehouses thereby causing damage temperature-controlled packaging based on temperature zones and flow directions. It effectively alleviates the possible

to stored items. In addition logistics infrastructure including transportation equipment pipeline systems and storage impact of extreme temperatures on consignments.facilities may be damaged by floods resulting in asset losses and increased maintenance costs.Flood disasters may cause damage to transportation infrastructure such as roads and bridges resulting in interruption

of logistics and transportation routes and delay of distribution timeliness thereby affecting transportation efficiency and

reducing operating income.68 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 69

Transition Risks Scenario Selected Scenario Scenario Application

Type Scenario Source Description Scenario Forecasting

Transformation risks refer to the risks faced by the Company due to changes in policies laws technologies and

markets in the process of coping with climate change and transforming of the sustainable development economic

model. Through the analysis of macro environment industry trends and internal research data combined with the Low Net Zero by IEA This scenario is International climate policy: Major countries and

International Energy Agency’s (IEA)16 Stated Policies Scenario (STEP) and Net Zero by 2050 (NZE) SF focuses on emission 2050 (NZE) an ideal scenario regions in the world announce their respective carbon

assessing policy and regulatory risks technology risks market risks and reputational risks identifies the impact of scenarios that refers to neutrality paths including Chinese “Carbon Peak”

energy transition and policy changes on the company’s business model analyzes the company’s transition risks and the success fu l and “Carbon Neutrality” goals and strictly implement

opportunities under different climate scenarios and provides scientific basis for formulating low-carbon transition achievement of the them.strategies. goal of net-zero

carbon d iox ide International business model: Accelerate the

Scenario Selected Scenario Scenario Application emissions around transition from a traditional economic model that

Type Scenario Source Description Scenario Forecasting 2050 through strict relies on fossil fuels to a green economic model climate policies and driven by renewable energy.innovation limiting

High Stated IEA The scenario reflects International climate policy: Some countries and global warming to Domestic greenhouse gas emissions: By 2030

emission Policies the current policy regions have not yet set clear climate goals and lack 1.5°C China’s carbon dioxide emissions per unit of gross

scenario Scenario environment and is detailed climate action plans. domestic product (GDP) will decrease by more than

(STEP) based on a case-by- 65%19 compared with 2005 and 18%20 compared

case assessment International business model: The profit-driven with 2020.of specific policies business model focuses on short-term financial

across sectors returns ignores environmental and social impacts Domestic energy structure: By 2025 non-fossil

as well as policies and there is no significant fluctuation in the renewable energy will account for about 20% of total energy

already announced energy mix. consumption and by 2030 the proportion of non-

by governments fossil energy consumption will reach about 25%21.p r o v i d i n g a Domestic greenhouse gas emissions: In 2030

benchmark fo r greenhouse gases will increase by 40% compared Domestic carbon price: It is estimated that in 2030

assessing potential with 2020. the carbon price will reach RMB207/ton (baseline +

outcomes (and quota auction + total control scenario)22.limitations) of recent Domestic energy structure: The proportion of non-

developments in fossil energy in total energy consumption is the same Domestic automobile structure: By 2030 the

energy and climate as in 2020 about 16%. proportion of new energy and clean energy vehicles

policy will reach about 40%23.Domestic carbon price: The carbon price in 2030

will be the same as that in 2024 approximately Domestic logistics transportation mode: Change from

RMB69.67/ton-RMB106.02/ton17. the existing logistics transportation mode to the

multimodal transportation mode with railways and

Domestic automobile structure: The proportion of waterways as the backbone vigorously promote the

newly registered new energy vehicles in the total intermodal transportation of rail and water continue

number of newly registered vehicles is the same as to promote the transportation of bulk goods and

in 2023 about 30.25%18 medium and long-distance goods “road-to-rail” and

“road-to-water” and vigorously develop high-speed

Domestic logistics transportation mode: maintaining rail express24.the existing logistics transportation mode

19 Source: Progress on the Implementation of China’s Nationally Determined Contributions (2022)

20 Source: Opinions of the State Council of the People’s Republic of China on Fully Accurately and Comprehensively Implementing the New

Development Philosophy to Achieve Carbon Peak and Carbon Neutrality Goals

16 The IEA model mainly focuses on the impact of energy system and policy changes on carbon emissions reflects changes in energy demand 21 Source: Outline of the 14th Five-Year Plan (2021-2025) by the National Development and Reform Commission

supply and carbon emissions under different policy and technology paths and is suitable for assessing transition risks related to energy 22 Source: Refinitiv releases “2023 China Carbon Market Long-term Carbon Price Forecast Report”

transition and policy changes. 23 Source: The Ministry of Industry and Information Technology the National Development and Reform Commission and the Ministry of Ecology

17 Source: Shanghai Environment and Energy Exchange releases annual comprehensive price trends and transaction information of the national and Environment issued the Implementation Plan for Carbon Peaking in the Industrial Sector

carbon market. 24 Source: Implementation Opinions of the Ministry of Transport the National Railway Administration the Civil Aviation Administration of China

18 Source: The Ministry of Public Security of the People’s Republic of China released The number of motor vehicles nationwide reaches 435 and the State Post Bureau on the Implementing the Opinions of the State Council of the People’s Republic of China on Fully Accurately and

million drivers reaches 523 million and the number of new energy vehicles exceeds 20 million Comprehensively Implementing the New Development Philosophy to Achieve Carbon Peak and Carbon Neutrality Goals70 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 71

The policy supervision under the low emission scenario is the strictest and the transformation risk has the greatest impact Climate Opportunities

on the company. Therefore the company has carried out the transformation risk analysis under the low emission scenario:

In the process of transitioning to a low-carbon economy SF turns challenges into development opportunities through forward-looking

Type of Risk Risk Factors Period of Influence Impact of Value Degree of climate adaptation measures. The Company actively explores new opportunities arising from energy structure adjustment market Chain Impact demand evolution and technological innovation develops green products and services enhances supply chain resilience promotes

business model innovation and injects new momentum into sustainable development.Policy and Greenhouse gas emission Short term medium Logistics operations Medium to

regulatory risks reduction policy pressure term and long term and sales high

Types of Opportunity Factors Period of Influence Impact of Value Degree of

Risk Analysis opportunities Chain Impact

Since the announcement of the “Carbon Peaking and Carbon Neutrality” goal China has successively issued a series of Product and service Development and/or expansion of Short term medium Operations and Medium to

relevant policies for the fields of energy transportation and logistics such as the Plan for Modern Logistics Development opportunities low-emission products and services term and long term sales high

during the “14th Five-Year Plan” Period and the Outline for the Development of Green Aviation Manufacturing Industry

(2023-2035) to promote the green and low-carbon transformation of the economy. These pressures from the relevant macro Opportunity Analysis

policy adjustments will influence SF’s core business activities such as express transportation and warehousing services

which may have an impact on SF’s business model and may also lead to an increase in SF’s expenses on environmental Policy opportunities: In recent years China has successively issued policy documents such as the 14th Five-Year Plan for Circular

protection energy conservation and emission reduction and other related activities. Economy Development and the Instruction on Accelerating the Construction of a Waste Recycling System clearly proposing

In terms of offshore compliance the EU-ETS has included the air transport sector aiming to reduce the carbon emissions to comprehensively implement a circular production model and build a circular economy for various industries. The economic

of aviation through market mechanisms. With the rapid expansion of SF Airlines freighter fleet and the increased demand system provides strong policy support and resource guarantee. SF actively responds to policy guidance deeply participates in

for intercontinental routes SF Airlines may be included within the scope of carbon emission trading control in the future the green transformation of the industry and seizes the strategic highland of circular economy.which may lead to an increase in additional operating costs. Market opportunities: As attention to climate issues continues to increase the demand structure of downstream customers

and consumers has accelerated its transformation to green and low-carbon services and the demand for sustainable supply

Countermeasures chain solutions has increased significantly. By actively upgrading its green service capabilities SF not only enhances customer stickiness and market competitiveness but also promotes the low-carbon collaborative transformation of the

upstream and downstream of the industrial chain injecting new momentum into the green development of the industry.SF has a policy research team to deeply analyze national and local policies continuously track the dynamic changes

of domestic and foreign laws and regulations and incorporate them into the risk assessment system. At the same time Countermeasures

combined with changes in the internal and external environment formulate strategic plans in advance to cope with policy

adjustments. Building a circular ecosystem: SF actively responds to the development trend of circular economy comprehensively builds a

In terms of international route operations SF continues to monitor the flight volume of EU routes and pays close attention circular ecosystem for express packaging collaborates with industrial chain partners to innovate the green and low-carbon

to the latest policy trends of the EU ETS carbon emissions trading system. The Company established a special working recycling model of plastics and deeply participates in the formulation of green packaging standards for “double easy” (easygroup on carbon emissions on EU routes and formulated the Guidelines of EU Route Carbon Emission to systematically to recycle and easy to regenerate) in the express delivery industry. Through the continuous implementation of the “Fengjingbuild carbon management capabilities integrate relevant resources cultivate professional teams and deploy risk response Plan” SF has achieved remarkable results in the fields of packaging reduction reuse recycling and degradation. In 2024

measures in advance. SF invests approximately 6.435 million recycled woven bags and 6.26 million recycled packaging containers to stimulate

SF engages a third-party professional organization to carry out carbon emission verification every year to fully gain a customers’ enthusiasm for participating in recycling and helps the high-quality development of the circular economy.deeper understanding of its own carbon emission status and at the same time implements refined energy-saving and Digital and intelligent low-carbon solutions: SF has established cooperation with multiple brand customers relying on the self-

carbon reduction management measures to promote scientific and standardized emission reduction work processes. developed “Fenghe Platform” carbon emission calculation model to provide customers with accurate measurement services for

greenhouse gas emissions in the transportation process improve the transparency of carbon emission data and tailor green

Type of Risk Risk Factors Period of Influence Impact of Value Degree of and low-carbon logistics solutions for customers to promote the green transformation of the entire supply chain.Chain Impact

Types of Impact of Value Degree of

Technical risks R&D and investment in low-carbon Short term medium Logistics and Medium to Opportunities Opportunity Factors Period of Influence chain Impact

transformation technologies term long term operations high

Resource efficiency Adopt more efficient transportation Short term medium Logistics and Medium to

Risk Analysis modes term and long term operations high

Driven by policy guidance and external market environment the research development and application of new energy Opportunity Analysis

and carbon reduction technologies in the field of logistics and transportation have received increasing attention such

as the practice of innovative technologies such as hydrogen fuel cell vehicles and sustainable aviation fuel (SAF) in the With the popularization and promotion of the concept of green logistics multimodal transport as an important strategy to

transportation link. SF continues to increase the deployment of new energy vehicles in the field of land transportation promote the low-carbon transformation of the industry is receiving widespread attention. China continues to promote the Work

while continues to expand the scale of its own cargo aircraft in the field of air transportation and pilot SAF commercial Plan for Optimizing the Development of Multimodal Transport and Adjusting the Transport Structure (2021-2025) aiming to

flights. The application and promotion of new energy technologies in transportation scenarios requires a certain amount of build a unified and open transportation service market promote the deep integration of roads railways waterways and aviation

increased investment which may increase cost pressure in the short term. improve comprehensive transportation efficiency and reduce logistics costs help achieve energy conservation and carbon

reduction goals in transportation. This policy orientation provides an important opportunity for SF to expand its multimodal

Countermeasures transport mode.SF actively participated in domestic and foreign sustainable aviation fuel (SAF) application pilot project discussions paid Countermeasures

close attention to SAF market dynamics and commercial application scenarios and successfully achieved the first SAF

commercial flight on December 19 2024. The domestically produced SAF refueled can achieve a reduction of 1600 SF gives full play to the resource advantages of aviation land transportation and delivery hubs and actively expands the

kilograms of carbon emissions in the entire lifecycle scenario multimodal transport mode of “Road Rail Waterways and Air”. In the field of bulk cargo transportation SF participates in the national multimodal transport demonstration project and continues to optimize the transportation organization model. In

Based on the technological maturity of new energy vehicles and the actual situation of energy replenishment facilities SF 2024 SF cooperated with China Railway Container Transport Xi’an Branch to successfully launch a container multimodal

selects specific areas or routes to carry out pilot operations of new energy vehicles such as liquefied natural gas (LNG) transport train from Xi’an to Urumqi innovating the “Railway + Express Delivery” integration model significantly improving

compressed natural gas (CNG) methanol and hydrogen fuel. transportation efficiency and reducing carbon emissions. At the same time SF actively explores the innovative logistics mode

of Air-Rail intermodal transport launches demonstration projects in Wuxi Shenzhen and other places and jointly promotes

the deep integration of rail transit and modern logistics with partners. By efficiently utilizing urban rail transit transportation

resources it not only alleviates road traffic pressure but also provides an innovative practice model for the green and low-

carbon transformation of the logistics industry.72 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 73

Risk Management Metrics and Targets

SF deeply integrates climate change risks into the enterprise risk management framework ensuring that climate-related As the largest comprehensive logistics service provider in China and Asia and the fourth largest in the world SF has always

risks are effectively identified managed and disclosed. The Company regularly organizes discussions and analyses adhered to the concept of sustainable and healthy development deeply realized the importance of participating in global climateon issues related to climate change continuously supervises and follows up on the handling of climate-related risks action actively responded to global carbon reduction initiatives and implemented the national “Carbon Peak and Carboncontinuously optimizes the risk management and control mechanism and management capabilities in daily work and Neutrality” strategy to contribute to the realization of the long-term goals of the Paris Agreement. Based on past carbon reduction

improves the Company’s ability to cope with climate risks. achievements SF released the industry’s first Carbon Target White Paper promising to increase its own carbon efficiency by 55%

in 2030 compared with 2021 and reduce the carbon footprint of each parcel by 70% compared with 2021. In November 2023 SF

officially signed and submitted the Business Ambition for 1.5°C Commitment Letter to the “Science-Based Carbon Target Initiative”

(SBTi) demonstrating the company’s commitment to achieving science-based greenhouse gas emission reduction targets and

SF continues to pay attention to and analyse changes in the internal and external striving to achieve net-zero emissions in the value chain by 2050.environment brought about by climate-related risks including pressures exerted by external

policies market trends SF’s risk tolerance and business operation models. If environmental

Risk environment changes have a significant impact on risk management strategies or measures SF’s risk

analysis management and control department will make timely adjustments to the risk control Carbon efficiency will be improved by

strategy planning. 55% in 2030 compared to 2021

Carbon footprint of each parcel

Based on SF’s goals of risk control it conducts in-depth research and analysis on the Long-term goals will be reduced by 70% in 2030

internal and external conditions and key matters affecting the realization of the objectives compared to 2021

Goal setting and risk covering multiple aspects such as internal management external economic environment

identification of risk natural environment and laws regulations and policies. In this case we can identify and

control sort out the list of risks related to climate change. Indicators Progress on Climate Action Future Planning/Goal Setting

* As of the end of 2024 SF has a total of SF plans to continue the construction of 15-

35 industrial park photovoltaic projects in 18 industrial park photovoltaic projects in

operation and construction with a total 2025 with an estimated installed capacity

installed capacity of 145 MW. of 50 MW.SF adopts a combination of quantitative and qualitative methods to conduct climate risk analysis * In 2024 the construction of rooftop By the end of 2025 all photovoltaic

and assessment. Based on the probability of risk occurrence and the degree of impact on SF’s Clean energy photovoltaic power stations in 24 industrial projects are expected to be completed and

objectives the identified risks are prioritized and the risks that are confirmed to be given the parks has been completed with an overall

Risk assessment operational. By then the total installed

extensive focus and the priority to control. As a result the risks can provide information for the installed capacity of more than 111 MW. capacity of photovoltaic equipment in the

reference of formulation and adjustment of SF’s development strategy. The annual renewable energy power industrial park is expected to reach 170 generation exceeds 70 million kWh and MW with an annual power generation of

Scope 1 clean energy usage exceeds 42 million approximately 140 million kWh achieving

and kWh. a stable supply of green electricity.scope 2

In 2025 SF will continue to combine the

* In 2024 SF actively adjusted the maturity of factors such as new energy

Taking into account the causes and tolerance of risks SF weighs risks and benefits brand structure of transport vehicles continue vehicle battery technology and energy replenishment conditions and continue to

reputation social responsibility and other factors and based on the results of risk analysis to optimize the selection and replacement

Risk responses the Board of Directors will review and determine appropriate and effective risk response plans Green of traditional fuel vehicles and further

promote the pilot and application of LNG

transportation expand the proportion of new energy CNG methanol hydrogen and other fuel

to ensure SF’s stable development. fleets. As of the end of 2024 SF has vehicles in some regions or lines.deployed more than 40000 new energy

vehicles covering 253 cities. By 2030 SF will strive to achieve 100%

Scope 3 electrification rate of vehicle equipment in aviation bases.* In 2024 through green packaging

SF continues to follow up monitor and manage the handling of climate-related risks. In daily measures such as packaging reduction

Supervision and work SF improves its ability to cope with climate risks by continuously optimizing its risk control recycling and degradation carbon Green emissions are reduced by approximately By 2030 we will strive to switch 100% of

improvement mechanism and management capabilities. packaging 664000 tons the use of packaging standard plastic bags to recycled plastic

base paper are reduced by 42000 tons bags.and the use of plastics are reduced by

approximately 155000 tons.74 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 75

Social

Fostering a Responsible Logistics Ecosystem

through Mutual Benefit and Symbiosis

SF has always followed the philosophy of “Co-benefit and Coexistence”with the overarching goal of creating a “Responsible LogisticsEcosystem.” We are committed to fostering a win-win sustainable

development ecosystem through our business activities. Toward our

clients we continuously enhance service scenarios and response

efficiency while meeting diverse needs through intelligent solutions and

customized services driving value enhancement. For our employees we

follow the concept of “people-oriented care” protect their rights and

interests in line with the law broaden career development pathways

and foster an equal and inclusive workplace environment to support

the mutual growth of employees and the company. For our partners

we deepen strategic collaboration share resources and technological

capabilities and promote green and low-carbon cooperation to drive

the high-quality development of the value chain. Toward the public

we actively fulfill our social responsibilities by participating in livelihood

projects such as rural revitalization and emergency supply guarantee. We

share the achievements of our corporate development with society and

promote the deep integration of economic and social values. SF always

takes “responsibility” as the bond and works with all parties to contribute

to building a better society.Construction of Talent Team

Protecting Employees’ Rights and Interests

Stand Firm on the Frontline of Safety

Stable and Safe Production 04

Building a Responsibility Value Chain

Sustaining Commitments to Social Wellbeing76 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 77

Construction of Talent Team

SF has always regarded talent as the core driving force of corporate development and placed great emphasis on building

a talent team. We are committed to developing a professional and high-caliber talent echelon through scientific talentrecruitment training and incentive mechanisms. In 2024 guided by the principle of “specialized personnel focused onspecific industries” we concentrated on cultivating compound talents with industry insights and professional skills to

provide customers with more precise and efficient logistics solutions. We also continued to optimize our management

model by shifting the management focus forward and closer to the front line of business. This allowed us to strengthen

our incentive mechanisms and fully activate operations. By establishing a comprehensive training system and diversified

career development pathways we supported the growth of our employees and laid a solid foundation for the company’s

sustainable development.Talent Recruitment

SF strictly abides by the Labor Law of the People’s Republic of China and the Labor Contract Law of the People’s Republic

of China as well as other relevant laws and regulations. The company has established the SF Recruitment Management

System to regulate the entire recruitment process. It strictly adheres to the principles of fair just and open recruitment and

implements measures such as quarterly compliance reviews of recruitment activities interviewer training and qualification School-Enterprise Cooperation

certification for interviewers to ensure the standardization and transparency of talent recruitment.The company highly values the development of a campus talent ecosystem. By leveraging multi-dimensional cooperation

The company has established a diversified talent acquisition network by integrating multiple channels including campus such as industry-university-research collaboration joint talent cultivation and the transformation of scientific research

recruitment social recruitment school-enterprise cooperation internal referral and others to precisely align with business and innovation achievements it realizes the organic integration of the education chain talent chain industrial chain and

development needs. In the area of recruitment channel development the company continues to optimize the functions of innovation chain. This in turn effectively supports the company’s sustainable innovation and development.its own recruitment platform deepen collaboration with leading recruitment platforms and innovatively leverage new media

platforms such as WeChat mini-programs and Douyin for targeted communication. These initiatives collectively drive dual

improvements in talent reach efficiency and employer brand influence.Joint Cultivation of Innovative Talent Model

In 2024 the company prioritizes the recruitment of specialized talents for industry solutions enhancing its strategic talent

pool through a standardized recruitment process and an end-to-end management system. In response to its international * SF Supply Chain Management Industry College: As of the end of the reporting period it has reached 18

business expansion the company specifically targeted the introduction of bilingual/multilingual talents with cross-border universities including Taizhou Institute of Science and Technology Vocational and Technical College and Shenzhen

business capabilities to provide robust support for overseas market development. Technology University etc.* International Talent Pre-identification: Special talent pipelines have been established with universities such as

In 2024 SF receives several employer branding awards including: the Massachusetts Institute of Technology Beijing Foreign Studies University and Sichuan International Studies

University to accurately meet the demand for global talent.* Construction of Smart Logistics Internship Bases: Jointly constructed internship bases with over 100 universities

including Southwest Jiaotong University Shenzhen University and Henan University hosting over 5000 interns in

2024.

SHL LinkedIn Intern Monk

Elite Talent Award in Global Attractive 2024 Favorite Co-Construction of Intelligent Logistics Laboratory

the 2024 China Talent Employers for Employer Award

Management Awards Graduates 2024 Focusing on core areas such as intelligent logistics and sustainable urban

development (low-carbon logistics urban safety) we have jointly built a practice

base that integrates teaching and training project practice and scientific

research. We have already carried out in-depth cooperation with Zhejiang

University.Collaborating with Shenzhen

Technology University to Establish

an Intelligent Logistics Industry-

Education Integration Training Base

58. com SEMA

2024 China’s New Best Employer Transformation of Scientific Research Results

Generation Employers of Brand Award

the Year (Top 100) 2024 Setting up post-doctoral workstations and conducting joint doctoral training with Zhejiang University; focusing on the

research and implementation of intelligent planning and scheduling models large language models and multimodal

models in logistics and supply chain.78 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 79

Talent Training and Career Development Focusing on the talent development system the Company provides a wide range of training courses and specialized learning resources for all employees including part-time and contractors to meet their needs for career development and

SF places great emphasis on the career development of its employees and has established clear and diversified career capability enhancement. Meanwhile leveraging the “Fengsheng” platform the Company has developed a one-stop employee

development pathways for all employees providing broad career development opportunities. The company fully supports development micro-application. Centered around four key modules – “Current Role Development” “Company Training”

employees in achieving their personal career goals. SF has built a scientific and systematic talent development system. “Development Planning” and “Development Opportunities” – the application precisely matches career pathways with skill

Through customized training programs and capability enhancement plans the company comprehensively strengthens enhancement resources thereby empowering employee growth.employees’ professional qualities and overall capabilities. This not only empowers employees’ growth but also injects a

continuous stream of talent into the company’s sustainable development. Grassroots Manager Development Program: Xin Feng Plan

Talent Training The “Xinfeng Plan” focuses on leadership development for grassroots managers continuously refines job-specific training

standards based on role functions and business scenarios and leverages the “Jizhi Feng Course” initiative to develop high-

SF embraces the philosophy that “talent is the primary productive force” and has established a comprehensive talent quality curriculum resources. This ensures that grassroots managers have access to training resources that better meet

development system that covers grassroots employees middle-management cadres professional technical teams and senior practical needs. In 2024 the program will conduct “Offline Special Training Camps for Responsible Persons” in multiple

management personnel. regions and target groups nationwide to enhance their business execution capabilities.SF Talent Training Framework 189 234 182 248

Number of people Number of people Number of people participate Number of participant

For employee groups such as dispatch collectors warehouse managers customer service representatives participate in the participate in the sales in the comprehensive ability instances in the cross-district

and sales personnel we focus on developing their service awareness safety consciousness and turnaround camp of ability improvement camp improvement camp of the person exchange activities for on-

communication skills. In addition to enhancing their performance we emphasize their sustainable new outlet leaders for on-the-job outlet leaders in charge of the reserve area the-job area managers

development and support grassroots employees in obtaining higher academic qualifications and professional

Grassroots Employees certifications.Middle Management Development Program: Fengyun

Training of Campus-Recruited University Graduates: We continuously implement the New Eagle Internship Plan

Program the Premium Talent Program the Group’s Unified Recruitment and Training Project and

Management Trainee Program to provide unified talent development and management for university

graduates recruited through campus channels. We adhere to three core principles: “boldly employing new The “Fengyun Plan” is a leadership development programtalents talent mobility and self-growth.” Through rotational assignments systematic curriculum learning designed for reserve functional department leaders. It adopts

and dual-mentor guidance we identify high-potential university graduates and provide them with rapid a “online cognitive foundation + offline practical deepening”

development mechanisms. This approach promotes their growth into core talents in professional roles or model systematically enhancing the comprehensive

key management positions. management capabilities of the reserve talent pool through

Training of Grassroots Managers (e.g. Outlet Leaders): Based on the knowledge and skills required for new leader experience sharing business case studies and

operational scenarios we continuously iterate our training standards and implement online training activities. feedback from business area leaders. This approach ensuresWe also conduct region-specific and group-oriented programs such as the “Offline Special Training Camp for a sustainable and high-quality pipeline of talent for functionalMiddle Management Outlet Leaders” and “Live Broadcasts of Demand Scenarios.” By integrating online and offline approaches leadership positions. In 2024 a total of 5 offline training SF’s 24th “Fengyun Plan” training site (Hangzhou site)

Cadres we provide grassroots managers with a broader range of effective training resources. sessions were held covering 236 reserve talents.Training of Middle-Level Managers (e.g. Heads of Regional Functional Departments): Taking business

scenarios as the starting point we establish key scenario-based training standards and comprehensive Senior Management Development Program: Beacontraining content. We conduct hierarchical training from reserve to on-the-job iterating the “Fengyun Plan– Training Program for Reserve Functional Department Heads.” Focusing on core competencies such as Training Camp

situational leadership practical job training and scenario-based task simulation we aim to enhance the

quality of our reserve teams and achieve a sustainable and high-quality talent supply. The “Beacon Training Camp” is designed to enhance the

comprehensive leadership capabilities of business area

Professional Ability Enhancement Project: Develop professional talent development pathways refine leaders. Through industry visits strategic war-gaming

qualification standards and learning maps for various positions provide high-quality learning resources exercises and other forms of experiential learning the

and guide the development of professional talents. program continuously improves the business acumen and

Professional Capability Development Programs: Continuously conduct activities such as expert forums and strategic execution skills of these leaders. This drives

Professional Technical professional lectures and offer curated courses on general workplace skills and specialized capabilities to sustainable growth in regional operating performance and

Teams help employees enhance and refine their professional competencies. ensures that the company maintains a competitive edge

in a highly competitive environment. In 2024 one training

Cultivation of Senior Management Executives: Focused on “industry transformation and business activation” session was held under the theme of “deepening industry Senior Management Industry Visit Sitewe employ a diversified approach including exchanges with industry leaders benchmarking visits to top focus and improving operational efficiency.”

enterprises cross-industry exchanges and in-depth study of best practices. This helps executives gain

deep insights into key industries rapidly replicate successful experiences and reinforce the philosophy

of lean management thereby facilitating the comprehensive implementation of the company’s strategic Curriculum and Lecturer Ecosystem Development

transformation.Cultivation of Senior Functional Managers: Aligned with the company’s strategic orientation and business Curriculum Ecosystem Development: The Company hasneeds we enhance the capabilities of senior functional managers to “link operations broaden horizons and established a tiered and categorized curriculum managementdrive change.” Through customized learning programs and industry exchanges we improve the effectiveness system continuously refined the operation mechanism of the In 2024 over 7000 new online training courses

of their business support. Additionally we provide high-potential executives with differentiated learning “Ji Zhi Feng Course” initiative increased the number of Group-

Senior Management resources and practical experience opportunities to further their development. certified courses and enhanced the course satisfaction rate for were added of which 908 courses were certified

Personnel

Cultivation of High-Level Successor Talents: Centered on the transformation and upgrading of thinking demand scenarios. Additionally the Company has rolled out

patterns comprehensive leadership development and the deep integration of strategy and business we personalized learning resource libraries tailored to different by the organization and 58 courses were certified by

offer a range of development opportunities. These include diversified job assignments multi-dimensional professional teams. In 2024 a total of 194 high-quality courses the Group.tasks and systematic learning content. This approach effectively enhances the competencies of successor were launched covering topics such as business planning

cadres for target positions ensuring a continuous supply of outstanding talents for the company. business development and leadership enhancement.80 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 81

Lecturer Team Development: SF places a high emphasis on the inheritance

and accumulation of knowledge skills and culture with internal lecturers ‘SF Cup’ National Job Skills Competition

serving as key drivers of this process. The Company certifies lecturers In 2024 a total of

based on their curriculum development and teaching abilities implementing 18210 instructors

a unified tiered management system that includes five levels: Lecturer

Intermediate Lecturer Senior Lecturer Expert and Professor. Each level were added to the database In August 2024 under the guidance of the

of lecturer is assigned basic teaching or curriculum development tasks an increase of 2979 National Defence Posts and Telecommunications

annually and corresponding teaching and curriculum development allowances Union of the All-China Federation of Trade

are provided in accordance with the SF Lecturer Management System. In compared with 2023. The Unions the Guangzhou Federation of Trade

2024 the Company stimulated lecturer potential through various initiatives lecturer activity rate reached Unions and the Yuexiu District Federation of

including the “Ji Zhi Feng Course” creation activities Authorized Lecturer 60% up by 4 percentage Trade Unions the SF Group Trade Union and

Certification (Star Plan) lecturer empowerment programs and honor selection the Group’s Operations jointly hosted the third

and showcase events. These efforts attracted business leaders with rich points from 2023. “SF Cup” National Job Skills Competition which

practical experience enhancing the reserve and overall quality of lecturers was successfully concluded in Guangzhou.and building a professional and dynamic lecturer team. This year’s competition consisted of a national

qualifying competit ion regional semi-f inals

and national finals. It featured four core job

Support for Degree Programs and Professional Skills Certifications tracks: collection and delivery transshipment

warehouse management and driver attracting the

SF encourages all employees (including part-time and participation of 540000 employees nationwide.contractors) to pursue degree programs and obtain skills

certifications offering support like expense reimbursement to In the national finals 62 individual and team

foster their self-development. honors were awarded through theoretical The 3rd “SF Cup” Job Skills Competition Finals Site

assessment and scenario-based pract ical

“SF Sends You to University” Program competitions such as intelligent sorting precise loading and unloading and safe driving. The competition

simultaneously introduced the innovative model of “skills exhibition + industry empowerment.” The live

Through the “SF Send You to College” program the Company broadcast of the practical sessions attracted over 600000 viewers showcasing the professionalism of

has established a growth platform for employees to enhance logistics practitioners to society and providing a demonstration sample for the upgrade of industry skill

their academic qualifications skills and overall quality. This standards.initiative supports employees in improving their academic

credentials and professional capabilities thereby broadening

their career development pathways. In 2024 the Company

revised the “SF Sends You to College” Project Management

Measures to standardize the subsidy policies for academic and

skills enhancement. Financial support is provided to all eligible

employees including part-time workers and contractors who meet “SF Sends You to College” 2024 Freshman Opening Ceremony Career Development

the application criteria.SF has set up a “dual-channel” career development system which provides employees with diversified development paths

2024 such as vertical grade promotion horizontal transfer and rotation and offers full-cycle support.

2309 More than RMB 2.89 millionNumber of employees who completed the “SF Cumulative subsidies granted to Systematic supportSends You to College” program and obtained employees under the “SF Sends You toacademic certificates or credentials College” program

Through the Talent Management System we clarify the promotion principles and standards emphasize the matching

of people and jobs and value contributions provide training guidance resource support and feedback and incentives

for employees and create an open and transparent promotion environment.Vocational Skills Certification

The Company has established a diversified outbound learning mechanism to encourage employees to obtain professional Fairness mechanism

qualification certifications related to their jobs participate in advanced certificate training and engage in short-term

outbound programs (such as academic forums industry seminars and external open courses). In 2024 the Company

will continue to provide outbound learning support for employees and in conjunction with the development of the job Establish an open and transparent internal competition and evaluation mechanism to ensure fair and accessible

qualification system will increase support for advanced certificate training and short-term outbound programs. This effort promotion opportunities and simultaneously improve the complaint acceptance mechanism to supervise and correct

aims to enhance employees’ professional capabilities and industry competitiveness on an ongoing basis. irregularities and safeguard the health of the talent ecosystem.

2024 Value-oriented

15000 2282 RMB5.76 million

Participation count of the Number of employees who Total subsidy for academic Employees with outstanding performance and remarkable contributions are given priority in development opportunities

workforce holding the have received education and qualifications and skills matched with dedicated learning resources and incentive policies to achieve a win-win situation for personal growth

Vocational Skill Certification skills upgrading subsidies and corporate development.82 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 83

Management Track Professional Track Development of Pre-Retirement Employees

(Management (Technical/Professional

Sequence) Sequence) SF pays attention to the development of pre-retirement employees formulates the Management Measures forPre-Retirement Development and Re-hiring and creates an innovative dual-track mechanism of “experience inheritanceSenior ManagementExpert Position + career continuation.”

Position

Experience inheritance: Create a full-time mentor position in the collection and dispatch role to provide a career transition

path for older senior couriers.Middle Management Senior Specialist

Position Position The number of people who became full-time mentors in the collection and delivery positions after starting

as junior couriers in 2024 526

Junior Management

Specialist Position

Position

Entry-level Employee/

Assistant

Career Breadth

SF Career Development Dual Channel

Management Development By leading and managing the team we can enhance our management and professional The master positioned in the middle The master imparts valuable experience to his colleagues

accompanied by his apprentice

Channel capabilities secure management promotions and thereby achieve self-development.Continuous in-depth development in the professional field and the pursuit of professional Career continuation: Outstanding employees who have reached the statutory retirement age and meet the physical

Professional Development condition standards are eligible for rehire in their original positions or in special roles such as inspectors thereby extending

skills. The company regularly assesses the professional qualifications of its specialists and

Channel their career value cycle.assigns professional levels to employees through scientific and objective assessment criteria.Number of Retired Employees Rejoining as of December 31 2024

Talent Succession Planning 35

The Company places a high priority on talent reserves for key positions and is committed to developing a systematic and

forward-looking talent pipeline. In 2024 the Company established a comprehensive and in-depth succession planning

program for successors of senior management and regional leaders. By integrating scientific selection customized training

and hands-on experience the program ensures that key positions are adequately staffed with capable individuals thereby

providing a robust talent foundation for the Company’s long-term and stable development.For the successors of senior management the Company adheres to the principle of “selecting the best among the best”

establishing an internal talent pool and designing customized development programs focused on strategic leadership.Through a blend of training and practical experience – such as executive experience-sharing sessions leadership

enhancement workshops and visits to industry-leading companies – a total of 24 successors were successfully promoted

throughout the year. This initiative has injected fresh blood into the Company’s strategic decision-making layer.For the successors of regional leaders the Company conducted an in-depth analysis of job responsibilities and key

scenarios establishing an integrated mechanism of “selection development and experiential learning.” By combining internal

competitions and external recruitment the Company further expanded its talent pool. Additionally the Company set up

challenging rotational assignments supplemented by multi-dimensional assessment methods such as mentorship phased

evaluations and stakeholder interviews to ensure a high match between successors’ capabilities and job requirements.In 2024 the Company recruited a total of 22 candidates for business area leadership roles of whom 16 successors have

successfully entered the job rotation phase thereby reserving high-quality talent for key positions. Twin Sisters Returned from Honorary Retirement Retirement and rehiring of courtiers

Career Depth84 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 85

Special Supporting employees’ multi-faceted development and

Topic living a vibrant life with a thousand facets

721

Number of

SF always believes that every employee has unlimited potential. Based on strategic orientation and business employees who

development needs the company has established diversified internal talent development programs to provide have transitioned

employees with transfer opportunities and resource support fully activate their potential and help them achieve from first-and

diversified career development. second-line roles

to professionals

From Grassroots Employee to Cargo Captain Grew from front-line and second-line Transitioned from front-line and second-line staff

roles to a port manager to a senior operations management specialist

Since 2007 SF has supported nearly 120 employees achieve career

transitions to professional positions in the aviation field including

pilots flight dispatchers and aircraft maintenance technicians. Many of

these individuals have emerged as outstanding talents from front-line

grassroots positions. 11556

Number of

Wang Qinjin a line captain at SF Airline joined the company as a couriers who have

warehouse operator in 2009 responsible for managing the ingress and transitioned to

egress of express shipments. In 2010 he successfully transitioned to management at all

a pilot role through the company’s aviation talent selection program levels

“Fengyi Action” and passed the captaincy assessment in 2018

completing a remarkable transformation from warehouse operator to

line captain. By 2024 he had accumulated over 630 hours of safe

flight time. From a courier to a team leader in operations

From Grassroots Employee to Area Leader

Zeng Yiming the Area Manager of SF Express joined the company

as a warehouse operator in 2011. In 2017 he participated in the

“Dream Realization Plan” under the company’s employee welfare Performance Management and Compensation Incentive

policy “SF sends you to college” and pursued further studies in

logistics management at Nankai University systematically enhancing SF consistently recognizes and values the contributions of its employees and is committed to developing a robust science-

his professional knowledge. Meanwhile he fully leveraged the based performance management and compensation incentive framework. This framework is designed to objectively and

functional training and practical opportunities provided by the comprehensively assess employees’ value creation thereby enhancing the vitality and stability of the talent pool while driving the collective growth of employees and the company.Company to comprehensively improve his capabilities in team

management policy implementation product design and business

integration. In 2024 he was promoted to Area Manager due to his Performance Management

outstanding performance and accumulated experience.SF adheres to the “Three Highs” performance management principles of “high-quality talent high-value output andhigh-reward incentives” fostering a performance management culture that ensures alignment between management

In 2024 over 23000 SF employees embarked on the path of diversified development advancing to 32 key positions and employees on common goals and drives effective execution through performance assessments. This ensures that organizational performance goals management commitments and individual employee commitments are cascaded

or fields in pursuit of their career dreams and a multifaceted life. effectively and aligned collectively supporting the achievement of organizational objectives. The Company implements

a closed-loop performance management process through four key steps: performance planning performance coaching

performance evaluation and performance application. It also encourages employees to create diverse value effectively

driving alignment and progress between employees and the Company. Additionally SF strictly enforces employee conduct

standards incorporating compliance behavior in daily work into the performance assessment system. Employees who

violate the Company’s code of conduct will be dealt with seriously in accordance with relevant regulations.

84 In 2024 under the guidance of “activating operations” the company upgraded and optimized the performance management

Number of system:

employees who

have transitioned Front-end authorization

from general

roles to aviation Increase the authorization of frontline sales teams simultaneously establish a customer delivery evaluation

professional mechanism and stimulate business vitality.positions

Transformation of the headquarters

Evolved from a regular employee to a co-pilot Transitioned from a regular employee to a Iterate the performance evaluation plan of the heads of departments and offices of the headquarters promote the

flight cadet transformation of the Group’s headquarters to business service positioning and strengthen service awareness.86 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 87

Protecting Employees’ Rights and Interests

Employee Multi-Dimensional Evaluation System

To effectively guide the direction of employee value creation SF always puts the protection of employees’ rights and interests in the first place is committed to providing employees

in 2024 SF adjusted its employee multidimensional evaluation with a diverse inclusive and equal working environment continuously pays attention to employees’ life and health

system. The new system is built on the foundation of cultural creates a humanistic and caring working atmosphere and effectively enhances employees’ sense of belonging and

values with core value creation assessed through the Value Point happiness.Working Group Chassis Working Group Operations Working

Group and Group Project Deliverables. It is supported by four key

pillars: overcoming challenges talent development knowledge

sharing and service support. This framework firmly clarifies the Employees’ rights and interests

direction of employee value creation objectively and effectively

measures employee contributions and identifies and motivates SF strictly abides by the provisions of the United Nations International Charter on Human Rights the International Labour

outstanding talents. “SF Employee Multi-Dimensional Evaluation System” Organization’s Declaration on Fundamental Principles and Rights at Work and the core conventions of the International

Labour Organization and follows the Ten Principles of the United Nations Global Compact (UNGC) to incorporate

human rights protection into the entire process of business operations. Through the formulation of the Declaration on

the Protection of Employees’ Rights and Interests the Company systematically implement the requirements of eight

international conventions including the Convention on Equal Remuneration for Equal Work the Convention on Minimum

First Asking Responsibility System Age for Employment the Convention on Prohibition of Child Labor the Convention on Discrimination in Employment and Occupation the Convention on Forced Labor the Convention on Abolition of Forced Labor and the Convention on

Occupational Safety and Health and establish a human rights protection mechanism covering the whole employment cycle.In order to lead functional employees to better implement

the concept of first question service SF has integrated In order to ensure the compliance of human rights protection the Company continues to strengthen the monitoring and

the first-inquiry responsibility system into its employee multi- due diligence of human rights risks in its operation sites to protect the rights and interests of all stakeholders within its

dimensional evaluation system thereby achieving a more business scope. In 2024 the Company did not identify major human rights compliance risk events.objective and comprehensive assessment of individual value

contributions.Promotion of the “First Asking” SF’s Statement on the Declaration on the Protection of Employees’ Rights and InterestsProvide safety and health protection: resolutely implement the safety production management policy of “safetyAdditionally the Company has established a performance feedback first prevention first legal compliance all employees perform their duties continuous improvement and healthymechanism to ensure the fairness and transparency of the performance development”;

evaluation process. This mechanism assists employees in identifying areas In 2024 the proportion of employees

for improvement and potential growth while supporting the development of

personalized development plans. To enhance the quality of performance receiving regular performance evaluations Prohibit the use of child labour and forced labour: strictly abide by the applicable laws and regulations of the

feedback sessions the Company utilizes online tools to monitor the 100 countries or regions where the business operates and invests and prohibit the use of child labour and any form execution rate of managers’ feedback sessions and the agreement rate reached %. of forced labour;

of improvement plans for underperforming employees. Furthermore the

Company provides a performance management knowledge map to empower

managers with enhanced performance coaching capabilities thereby Respect for freedom of association: Respect the freedom of association of employees protected by law. Employees

facilitating continuous employee growth. have the right to form and join legally recognized trade unions including participating in trade union activities

workers’ congresses etc.;

Compensation Incentives Anti-discrimination equal opportunity and diversity: No discrimination on the basis of race color ethnicity sex

SF adheres to the compensation philosophy of “high performance high reward” and has established a compensation sexual orientation religion age ancestry marital status physical condition or any other form will be tolerated;

system that is based on job value and performance-oriented emphasizing the alignment of rewards with value output. The

Company develops differentiated compensation strategies according to various job types and talent strategies offering Anti-harassment and violence: harassment violence or threat of violence of any level will not be tolerated or ignored;

employees a comprehensive compensation package that is both internally equitable and externally competitive.The Company has established a strong performance-based incentive pay structure for all employees conducting monthly

quarterly and annual performance appraisals for employees across different job categories and levels. The appraisal Training and development: By establishing a scientific and comprehensive talent training system the Company

results serve as a critical basis for determining employee compensation promotions bonuses and other related matters enhances employees’ professional quality and comprehensive capabilities provides employees with clear career

thereby encouraging employees to grow alongside the Company. For employees who make high-value contributions the development paths and helps employees achieve long-term career development.Company offers a market-competitive compensation and reward system. Through differentiated and diversified long-term

and short-term incentive mechanisms the Company attracts and retains core talents ensuring that the interests of key

personnel are closely aligned with those of the shareholders and the Company. This approach provides a strong impetus

for the Company’s long-term sustainable development.The above commitments apply to all directors officers and all workforce of S.F. Holding Co. Ltd. and its subsidiaries.To ensure the fairness and transparency of the compensation system the Company has established robust compensation

communication channels combining online compensation inquiry tools with offline face-to-face discussions to help

employees clearly understand their compensation structure. At the same time the Company regularly reviews its

compensation incentive mechanisms analyzing market competitiveness and internal equity to ensure that compensation

levels are fair reasonable and attractive. This approach continuously enhances employee satisfaction and sense of

belonging. Furthermore to attract and retain core talents the Company has introduced an equity incentive plan. Through

long-term incentive mechanisms this plan aims to boost the enthusiasm and creativity of the core team thereby providing

a solid talent foundation for the Company’s sustainable development.88 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 89

Prohibition of Child and Forced Labour Anti-Discrimination and Anti-Harassment

SF strictly prohibits the use of child labour and any form of forced labour. During the recruitment stage the Company’s SF has zero tolerance for discrimination and harassment and explicitly prohibits any form of discrimination based on

SF requires all applicants to register their personal information online automatically identify the age of their ID cards race skin color ethnicity gender sexual orientation religion age ancestry marital status physical condition etc. in the

through the system and prohibits people under 18 years old from interviewing; In the onboarding stage face recognition Declaration on the Protection of Employees’ Rights and Interests and advocates a workplace culture of mutual respect.authentication is adopted to ensure the integration of people and witnesses. At the same time third-party partners are

required to submit documents to prove that their labor management complies with SF standards and to eliminate human The Company has refined the detailed rules for punishment of violations of regulations and disciplines on harassment

rights violations such as child labor and forced labor. through the Regulations on the Administration of Rewards and Punishments requiring all employees to study and sign the

Regulations on the Administration of Rewards and Punishments online and at the same time promoting anti-harassment

Working Hours and Welfare Protection and anti-discrimination promotion through emails and training in various regions offline so as to create a healthy and equal workplace environment. In 2024 the Company ensured that 100% of all employees received diversity anti-discrimination

SF clearly stipulates working hours in the Employee Handbook Attendance Management Regulations and Labor Contract and anti-harassment training by organizing publicity and implementation meetings for employee handbooks and statements

and formulates Flexible Working System to provide convenience for employees with special needs. During holidays and on protecting employees’ rights and interests. The Company did not have any incident of discrimination or harassment

business peak periods by hiring flexible employees the number of employees in some temporary and auxiliary jobs is throughout the year.supplemented the work intensity of on-the-job employees is reduced and the rest time of employees is guaranteed. All

employees enjoy the same rights and interests and adopt the same standards in employee management and protection

of rights and interests. Temporary employees sign contracts or agreements according to law to obtain labor remuneration Protection of Women’s Rights and Interests

and employer liability insurance (including accident) or work-related injury insurance. SF continues to promote gender equality in the workplace and has established a female employee committee to protect

In case of major restructuring or change the Company would explain the situation to the labor union or all employees the rights and interests of female employees according to law.

30 days in advance and properly handle the termination or termination of the labor contract after fully listening to the

opinions to ensure that the rights and interests of employees are fully protected. During the year The company has not

experienced any major layoffs. Support facilities: Maternal and child rooms have been set up in offices across the country to provide private safe and hygienic

breastfeeding space for lactating female employees.Diversity Inclusion and Equality Holiday benefits: Fully implement exclusive leaves for female employees such as maternity leave prenatal check-up leave

abortion leave breastfeeding leave and dysmenorrhea leave.SF fully respects cultural differences in different regions strictly prohibits any form of discrimination and is committed to

creating a diverse equal and inclusive workplace environment for employees around the world. The Company adheres Health care: organize female employees with free female health screening checks for cervical cancer and breast cancer; Send

to the principle of equality in employee recruitment promotion and development and salary management does not gifts to female employees on International Women’s Day and commend the “most beautiful employees”.discriminate against employees due to gender region ethnicity religious belief economic ability and other factors and

actively carries out diversified recruitment to provide employment support for vulnerable groups. Special support: Hold the “New Employment Form SF Female Knight Care Activity” and launch five action care plans for

female riders in the same city including rights protection physical and mental health academic improvement welfare care

and exclusive condolences.Recruitment Employee promotion Remuneration management

Under the principles of fairness and equality The Company select and The Company implement a fair 2024

the Company have formulated a transparent promote talents through open just and transparent remuneration 30 About 9000 people

recruitment process that is clearly and formally and transparent internal management system and adhere to Number of female employees with free female health

communicated to all candidates. The Company will competitions or appraisals the principles of gender equality and Number of maternity rooms screening checks for cervical cancer and breast cancer

never restrict recruitment or employment based on providing equal promotion equal pay for equal work to ensure

gender geographical region ethnicity religious opportunities for all employees. that all employees share in our

belief or financial situation. development fruits.Pay Tribute to Every Amazing “SHE”

The principles of equality in SF’s recruitment promotion and remuneration management

Diversified recruitment: In 2024 female SF employees accounted for 15.1%; Minority employees account for 5.8%. In In order to express its care and respect for female

addition SF’s overseas branches (subsidiaries) are also actively hiring local personnel from operating places. As of the employees SF distributed a total of 90403 gifts to

end of the reporting period there were 2580 foreign employees on the job an increase of 2.8% compared with 2023. female employees on International Women’s Day in

2024 commending 107 most beautiful employees

and inspiring them to forge ahead; Open in-app

Number of female senior managements 129 welfare purchases to give back to employees for

Percentage of women in senior management 28.5% their hard work. The Company also set up a cloud care platform for the March 8th Goddess Festival.The traffic of the live broadcast room reached

159000 on that day delivering warmth online.

In addition the Company also paid special attentionto the female courier held the “New EmploymentForm SF Female courier Care Activity” and released

Number of senior managements 453 five major caring actions covering rights protection

28.5 1.1 physical and mental health actions academic % Increased compared to 2023 % improvement actions caring and welfare actionsand exclusive condolence activities. “New Employment FormRecruitment of vulnerable groups: On the premise of meeting job requirements SF actively provides employment SF Female courier Care Activity” Site

opportunities for vulnerable groups in society matches positions with low physical strength (such as customer service

management warehouse management professional etc.) and promotes employment of vulnerable groups. As at the end

of the Reporting Period there were more than 1500 people with disabilities on the job at SF.90 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 91

Smooth Employee Voice Democratic Management

SF attaches great importance to employees’ voices and suggestions builds diversified open transparent and responsive SF respects employees’ right to freedom of association and Collective As of the end of the reporting period SF had

voice channels and encourages employees to express themselves boldly and actively participate in corporate governance. bargaining negotiation and establishes a friendly dialogue and collective

For employees who put forward useful suggestions the Company provides incentives and growth opportunities; The agreements mechanism with trade unions and employee representatives.Company commends and affirms organizations that actively adopt suggestions and promote problem solving. Employees can openly communicate with the Company’s management

established 125 labor unions in its whole

on working conditions and management issues focus on the actual

needs of grassroots employees and effectively improve the happiness network with 21500 representatives.In addition to conventional telephone channels (labor union hotline) online channels (“Echo platform” and “I want to report”) index of grassroots employees.and email the Company has set up scenario-based voice channels such as “ One-stop appeal service” “ Appeal servicefor the frontline workers” “ Trade union visit” and Labor Dispute Mediation Center based on different scenarios to quickly The Company elects employee representatives through elections every

respond to and solve employees’ demands. year and holds SF employee representative conferences regularly. In

key links such as the formulation and release of system documents In 2024 there were 236 elected staff

involving employees’ rights and interests the trade union would also

start temporary workers’ congresses in due course to ensure that representatives and 10 online staff

the decision-making fully absorbs employees’ opinions. In 2024 the representatives’ congresses were held.Communication Channel for SF Primary Employees Company established an online management platform make procedures

online and communicate and discuss employee rights and interests

related systems such as the Attendance Management System the

Employee Handbook and the Information Security Reward and coverage rate of employees in the SF

The one-stop appeal service collects effective In 2024 Punishment Management Measures. At the same time the Company

appeals from employees monthly to distribute 12219 95 actively promotes the signing of collective contracts to ensure that the Collective Agreement 100%to the relevant regional organizations for further % rights and interests of all employees are effectively protected.One-stop appeal solutions.service appeals collected resolution rate

Remuneration Working hours and Holidays

The Company’s policies would be delivered

to the frontline workers in the form of live In 2024 Over

broadcast at the first time including institutional

Appeal service process system tools business development 6 506000

for the frontline quality improvement and logistics support and Insurance and Benefits Safety and health at workbroadcasts

workers employee welfare. live broadcast views Main content covered in

the Collective Agreement

In 2024 Special care for female employees Vocational training

SF opens an employee care hotline to ensure

smooth procedure in channels to cater for 52546 95%

employees’ needs on weekdays and holidays

Employee care and provide timely psychological support and

phone calls received hotline

hotline problem solving solutions for them. by the Employee Care connection rate Democratic right Reward and Punishment System

hotline Centre

Main content covered in the Collective Agreement

Through the establishment of an online

appointment visit platform the demand Advice and Suggestions

survey of trade union visits is carried out for In 2024

all employees every quarter. Trade union SF continued to scale up the publicity and promotion of the system that collects 7% 5%

representatives conduct regular offline visits Over advice and suggestions encouraging employees to put forward reasonableto listen to employees’ voices communicate suggestions. In 2024 the Company established the country’s first “enterprise-levelface-to-face with employees understand 180000 100% craftsman college” in the new employment form industry set up a model worker 1 6%Trade union visit employees’ working conditions welfare benefits craftsman innovation studio and encourage employees to focus on the “ five littleEmployee visit needs Union on-site matters “ (little inventions little creations little innovations little designs little and career development and timely feed suggestions) The “Digital Intelligence Union” platform puts forward reasonable

back employees’ opinions and suggestions to attendance rate suggestions. The Company updated and published the Reasonable Suggestions 50%

relevant departments. Management Mechanism rewarded employees who adopted suggestions and

stimulated employees’ “ownership” spirit.

22%

Carry out consultation and dialogue around the In 2024 more than 28000 employees participated in providing suggestions

interests of employees set up a labor dispute collectively submitting over 30000 proposals. Among these 4700 suggestions

mediation committee formulate the Working In 2024 were adopted resulting in rewards for 3000 employees.System of Labor Dispute Mediation Committee Optimization of Improvement of daily Over SF employees’ rationalization suggestions focused on five categories including system functions operation regulationsLabor Dispute and strive to ensure that contradictions are 323 optimization of system functions improvement of operating tools optimization of Improvement of Improvement of

Mediation not handed in and disputes are not out of the Handling labor mediation disputes system and process standards improvement of daily operation regulations and

operating tools office environment

Center station so as to truly eliminate disharmonious improvement of office environment. Among them system function optimization Optimization of system and process standards

factors in the bud. suggestions account for the highest proportion reaching 50%.92 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 93

Employee Satisfaction Employee Welfare and Care System

The Company conducts a semi-annual satisfaction and engagement survey for all employees covering the dimensions of SF provides employees with a variety of welfare care measures

“employee perspective” (organization atmosphere work development reward) and “enterprise perspective” (recognition from the three aspects of “ensuring basic welfare improving caringrecommendation effort retention) and reviews the perception changes of employees in each organization in stages temperature and helping long-term development”.through the fit of employee perspective and enterprise perspective.Statutory benefit Subsidies Living welfare Physical and mental health

In 2024 the Company conducted employee satisfaction surveys focusing on core issues such as organizational atmosphere Providing insurance and housing Providing food Providing staff Providing healthcare services

career development salary and benefits and working environment. The survey results show that employee satisfaction fund paid maternity leave subsidies dormitory staff canteen such as free physical examination

in 2024 was 92.3% an increase of 4.5% compared with 2023; Employee engagement was 86.7% an increase of 2% prenatal check-up leave abortion communication remote work and other online consultation video

Guaranteeing leave breastfeeding leave subsidies transportation living welfare security consultation convenient compared with 2023. paternity leave parental leave subsidies winter and medicine purchase psychological

basic welfare and other statutory benefits summer subsidies consultation etc.The Company tracks the results of the semi-annual employee satisfaction and employee engagement performance overtime

and takes actions in response formulates optimization measures for key issues such as optimizing the career development Festival care Deploying care Performance Pension for difficulties Care for family Recreational and

channel of front-line employees and tilting the salary to the front-line etc. The implementation measures are subject to the Providing Offering free care Providing special Providing sports activities

supervision of the majority of employees and reviews the improvement effects in stages to effectively protect the rights various holiday shipping/family- Providing greetings and assistance scholarships Organizing team

and interests of employees and enhance their sense of belonging and loyalty. benefits/ visit holiday/ incentive leaves for abnormal weather/ grants and building encouraging activities for family-visit activity funds and natural disasters/major other benefits participation in

Raising of care employees and transportation study subsidies diseases etc to employees’ cultural and sports their families allowance etc. children activities and holding

Results of the 2021-2024 Employee Satisfaction Survey Results art activities

2024 2023 2022 2021 Education and skill Diversified development Honor and commendation Training

upgrading within the Company Carrying out daily and Providing multiple learning

Supporting Providing subsidies for Smooth development annual merit recognition resources and channels

Employee satisfaction 92.3% 87.8% 86.4% 86.9% long-term education and skills upgrading pathways for transfer and development transformation

Employee engagement 86.7% 84.7% 86.2% 87.5%

Care for the Physical and Mental Health of Employees

SF adheres to the concept of “love-oriented” always puts the health and safety of employees first provides comprehensive

Employee Care and Welfare physical and mental health support for employees and protects their physical and mental health in all directions.SF has built a comprehensive and diversified welfare care system Safeguarding Physical Health

for all employees covering multi-dimensional scenarios such

as job security medical care food housing and transportation The Company cares about the health of employees provides annual health check-ups for all employees and provides

important festivals and important moments in life of employees different physical check-up packages according to their age and job positions to help employees identify health risks and

and their families. Through the sinking care mechanism SF has obtain timely medical reminders.an in-depth understanding of employees’ needs effectively solves

practical problems enhances employees’ sense of belonging and

happiness and enhances team cohesion and identity.Health check-ups for employees were organized benefiting 396000 people including cancer

screening treatment and recuperation for female employees and free medical treatment for traditional

Health Chinese medicine dentistry and ophthalmology.Employee Welfare and Care System check-up

In addition to employee compensation SF offers a wide range of material non-pay benefits to all employees. On the

basis of paying social insurance and housing accumulation fund for all employees on time in accordance with the law the

Company further built a multi-level welfare guarantee system and provide a series of non-statutory benefits including: Forespace (Fengsheng) platform has introduced the Medical Housekeeper service and provided online

providing employee canteens dormitories and other living facilities to meet basic needs; Relying on telecommuting and consultation and drug purchase preferential services with a total of 8246 online consultations and

flexible working hours system to improve work flexibility; We also implement special subsidies such as food subsidies Medical

communication subsidies transportation subsidies and cold and heatstroke prevention subsidies based on job HousekeeperService 5805 drug purchase services.characteristics to comprehensively optimize employees’ life and work experience.

2024 2023 2022 Carry out safety and health education on the whole network and publish the “Health and Safety ThemeTraining Course” with a total of more than 13000 learners.Total investment in employee care (RMB10000) 37374 35543 31004 Safety

education The “Ankang Cup” safety production labor competition was launched attracting nearly 300000

people to participate.94 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 95

Safeguarding couriers ‘s health Caring for Mental Health

Mobile physical Organized 33 mobile physical examination vehicle services covering a total of 13000 couriers providing SF also attaches great importance to employees’ mental health and helps employees establish correct mental health

examination vehicle convenient health examination services for couriers. concepts master mental health knowledge and relieve emotions and stress by setting up psychological counseling platforms providing psychological counseling services and holding mental health seminars.Optimize the allocation and management of emergency medicines to ensure that couriers can quickly obtain

Equipped with first

aid kit necessary emergency medicines and equipment for treatment. More than 25000 first aid kits/boxes

are deployed throughout the network. Care about Mental Health

Summer cooling activities were held in high-temperature areas in summer covering more than 13500 Mental health articles were pushed via Forespace (Fengsheng) platform service account and other

Coping with Extreme outlets and benefiting more than 550000 people.Weather channels with more than 230000 views

In extremely cold weather the entire network is equipped with warm hats and other cold-proof materials

covering more than 27000 transit sites and benefiting more than 94000 people. The “Shun Xin Ru Yi” self-psychological relaxation experience platform has been viewed more than

The investment cost to buy commercial insurance for all the couriers is about RMB55 million. Platform publicity

Purchase Business 180000 times

Insurance Critical illness insurance was awarded to outstanding couriers benefiting 57000 people in total with

an investment cost of about RMB8.6 million.The “Walking First Responder” campaign was carried out and 6416 employees were organized to

Conduct first aid participate in first aid training and training on the use of AED (Automated External Defibrillator) and AED One-to-one psychological counseling service from the online and offline has served for more than

training equipment was placed in 169 outlets and venues. As of the end of the Reporting Period 1713 employees 854 people

have successfully obtained first aid certificates.Setting up a 24-hour hotline with 288 hotline consultation services

Pay attention to the driving specifications of couriers during the collection and delivery process and issue Psychological care

the “Notice on the Incentive Plan for Safety and Image Management of Two-and Tricycles” to reduce the

Encourage safe

driving occurrence of traffic safety accidents of two-and three-wheeled electric vehicles through financial i

ncentives.In 2024 the accident rate per 100 vehicles of the courier’s two-and three-wheeler was 0.193 a year-on-year

reduce of 20.98%.In addition SF provides help and support to employees with practical actions and comprehensively improves employees’ SF has organized 1800 psychological care lectures with more than 53830

work experience and happiness in life.participants

Psychological lectures

Let the courier warm the heart and stomach during the peak period

The Company has carefully prepared a series of caring measures for the courier including caring collection and

delivery tools caring mobile kitchens heart-warming peak demand solutions and caring trade union representative

business vanguard teams. In 2024 the Company distributed more than 330000 bicycle baskets to the courier to help

the courier collect and deliver efficiently. In addition more than 4000 love mobile kitchen activities have been carried

out to send hot food to the courier cheer them face to face and encourage everyone to win the peak. 800 Shunxin service centers have been set at outlets across the network

1781 psychological activities were conducted covering more than 52000 people

Psychological activity

The “Mobile Kitchen” visits courier stations offering delivery personnel warm and comforting meals

33 star employee homes were built and nearly 1000 employee homes nationwide were

equipped with stress relief props and posters

Workplace remodeling

Caring team brings coolness to courier on summer day Hand out thermal kits to the employees at the transfer station96 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 97

Work-Life Balance Enrich Employee Leisure

SF always cares about the living and working conditions of employees and their families and helps employees solve The Company regularly holds healthy and diverse cultural and sports activities for employees to help employees relax

practical life difficulties and promote work-life balance by implementing diversified care measures for employees’ families after work stimulate vitality and cohesion and balance work and life. In 2024 the Company organized a total of 1438

and carrying out rich cultural and sports activities for employees. cultural and sports activities such as birthday parties symposiums and fun sports meetings covering one million people

creating a positive and warm working atmosphere for employees.Family Supporting Programs

SF not only cares for employees but also extends its care to employees’ families. By carrying out employees’ family care

activities SF provides exclusive benefits enhances employees’ family happiness and further unites the centripetal force

of the team. Spring Festival Ceremony Series Activities

Family Benefits Leave In 2024 the SF labor union joined hands with all

employees to celebrate the Spring Festival and hold a

In accordance with national laws and regulations and regional administrative regulations the Company provides large-scale offline Spring Festival gala across cities for the

qualified employees with comprehensive paid maternity leave covering maternity leave prenatal check-up leave first time. A total of more than 600 people participated and

paternity leave abortion leave breastfeeding leave and parental leave and comprehensively supports the protection the cumulative viewing traffic in the live broadcast room

of employees’ rights and interests during childbirth and childcare stages. exceeded 1 million. In addition Lantern Festival activities were held simultaneously in 30 regions of the Company

In addition to statutory holidays the company also provides employees with special paid leave such as Spring Festival to celebrate the Lantern Festival.special annual leave family visit leave etc. to help employees better balance work and life spend quality time with

their families and promote family harmony.Offering Student Subsidies/ Scholarship Spring Festival Series Activities

Golden Autumn Subsidies: the Company offered student subsidies of RMB 1.54 million to the families

of employees with serious diseases and major difficulties Scholarships for college entrance exams: RMB

368000 scholarships were given to 183 children of employees who were admitted to universities.

“All people move vitality wins the future” National Games

Advancement Benefits

In 2024 SF held national sports games in 44 regions

Provide additional benefits for the “Feng Er Generation” who have across the network attracting 63000 employees to

been admitted to universities such as gift packages luggage delivery actively participate. At the same time SF held a special

benefits district tea parties etc.; Additional scholarships sports games in South China with more than 500 people

183 were awarded participating. The National Sports Event not only stimulates to students who have been admitted to key universities. employees’ team spirit and enthusiasm for sports but also

SF employees’ children are awarded for their college strengthens the cohesion of the enterprise allowing more

entrance exam achievements employees to feel the care and support of the enterprise.Summer Camp

More than 2000 employees’ children were organized to

participate in summer camp activities including study tours in Beijing National Games

SF and participation in government organized kindergarten courses.Opening Ceremony of the SF Summer Camp

for Children

Carrying out Greetings and Assistance Activities

The Company visited more than 19000 employees and their families with difficulties and the amount of

assistance was about RMB 11.64 million.98 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 99

Stand Firm on the Frontline of Safety Safety Management Framework and Responsibilities

In order to fully implement the company’s safety management policies and

SF always regards safety production as the cornerstone of the sustainable development of enterprises continuously standards and ensure the effective supervision and management of safety

improves the safety risk management system deeply integrates the concept of safety production into every link of daily management in various regions SF has defined a three-tier management

operations and creates a safe and healthy working environment for all employees. organization composed of the group headquarters regions and grass-roots

levels and formulated and improved a series of safety systems to ensure the

company’s safe production and operation. SF Safety Management

Framework

Improve the Safety Management System The Risk Management Committee of the Board is responsible for coordinating

and making decisions on the strategic planning of production safety approving

SF strictly abides by the national laws regulations and standards in the field of production safety and combines the and promoting the formulation implementation and changes of relevant

requirements of the standard of occupational health and safety management system (ISO 45001) the Guideline of China policies.Occupational Safety and Health Management System (GB/T33000) and NOSA five-star system standard (health safety and

environment). SF builds a safety production panorama covering 11 units and a total of 66 safety production factors forming The Board of Directors has established a Safety Production Committee Risk Management

a systematic safety production compliance database to ensure the safety and controllability of the entire operation chain. under its Risk Management Committee. The Chairman of the Board who

also serves as the CEO chairs the Safety Production Committee. As the Committee of the Broad

first person responsible for the Company’s safety production the Chairman

who also serves as the CEO is fully responsible for the Company’s overall

safety production work and ensures robust leadership and execution in safety

Occupational Posting and Transportation operations. The Safety Production Committee is responsible for guiding the

Health Delivery Safety Company’s safety risk management establishing and strengthening the safety Safety production risk management and control mechanism regularly evaluating the Safety Production

perfection and effectiveness of the safety risk management system providing Committee

professional opinions and suggestions and reporting the progress and

Risk achievements of safety risk management to the Board on a quarterly basis to

Basic People Stakeholders

Assessment ensure the implementation and implementation of safety production strategies Management Management Management objectives and performance.and Control

The Safety Production Implementation Working Group is a cross-functional Safety Production

virtual organization under the Safety Production Committee. It aims to unify Implementation Working

Emergency the safety production thinking across functional organizations coordinate GroupSite Facilities and and Continuous safety production positions and expedite major safety production initiatives. Management Equipment Accident Improvement The group is responsible for conducting comprehensive safety production

inspections and special supervision guiding and coordinating internal safety

production enforcement efforts and discussing and analyzing proposals for

Comprehensive Work Safety Framework significant safety production measures.Policy and Commitments Safety Production Management System

SF regularly audits the safety management system documents every year to provide scientific appropriate and efficient

safety production management guidance to all organizations. In 2024 according to the risk management and control

Safety Management Principles requirements and the accumulation of actual management experience the Company added and revised six safety

management systems namely Standardized Supervision Mechanism Regulations on Safety Management of Transit Depots

Safety first focus on prevention legal compliance full performance of duties continuous improvement and sound development Operations Regulations on Closed Management of Transit Depots Measures for Safety Management of Forklifts in Transit

Depots Property Safety Management Regulations and SF Vehicle (Automobile) Safety Driving Operation Standards to

Safety Management Commitments further strengthen operational specifications and safety management.In order to fully implement the main responsibility of production safety prevent and reduce production safety accidents and

1. Abide by national laws and regulations standards and management requirements; ensure the safety of employees’ lives and property the Company continues to promote the safety production responsibility

2. Company’s top executive is the first responsible person for safety of SF and the chief leaders of each organization are system for all employees organizes all employees to sign the Safety Production Responsibility Letter and clarifies the

the first responsible person for safety of their own organizations In daily work they implement the code of conduct and safety management responsibilities at all levels: the chairman and CEO are the first responsible person for production safety responsible for formulating safety production targets and making commitments to ensure safe and healthy working

play the leading role in safety; conditions for all employees; Managers at all levels are directly responsible for the safety production work within their

3. Adhere to the principle of people first and focus on prevention and achieve the target of “zero accidents”; jurisdiction ensuring the effective implementation of safety measures and earnestly performing safety management duties.

4. Provide necessary support including manpower resources and funds;

5. Establish communication channels on safety management for all employees and stakeholders; Safety Management Target

6. Control production safety risks effectively and take actions to minimize the risks; SF sets clear and quantifiable annual safety targets and regularly reviews safety management and its effectiveness.

7. Optimize the allocation of safety management resources and continuously improve the safety management; The company aims to reduce the accident rate of casualties in millions of express deliveries and the target covers all

SF employees and contractors. The compensation incentives of senior management (including CEO) and all safety

All of our stakeholders including employees and contractors are obligated to keep the Company’s commitment to production management personnel are linked to the improvements in Health & Safety performance.safety management.100 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 101

In 2024 SF did not have major safety production accidents or major on-site fire accidents with liability and the accident

rate of casualties in millions of express deliveries dropped by 5% compared with 2023 successfully achieving the 2024 Stable and Safe Production

safety management target. The company will continue to optimize the safety management assessment mechanism clarify

safety targets for 2025 and complete indicator decomposition strive to achieve good performance in the management and

control of key accidents such as site safety production liability accidents spontaneous combustion accidents and traffic SF continues to improve the construction of the “dual prevention mechanism” of risk classification management and

accidents and continue to improve safety performance. control and hidden danger investigation and management establishes a scientific and systematic management process

in safety risk prevention and control and hidden danger management builds two firewalls to prevent production safety

accidents and continues to improve safety management capabilities to comprehensively ensure the company’s production

Description of 2024 Safety Management Targets 2024 Progress and operation safety.

0 major production safety accidents 0 Achieved

0 major on-site responsible fire accidents with liability 0 Achieved SF Safety Risk Identification

The accident rate of casualties in millions of express deliveries25 decreased by

Decrease 17.2% Achieved Evaluation and Control Framework

5% year-on-year

SF Key Safety Production Management Performance

2024 2023 2022 01 Build an organizational structure

Indicators in the Last Three Years

Major express deliveries fire accident 0 0 0 Set up a safety management working group

Class I and Class II fire accidents at major sites 0 0 0

Special safety inspection and rectification rate of potential

100%100%100%

safety hazards in activities 02 Define evaluation units

Define evaluation units based on field scenarios associated with departments positions

Safety Management System Certification operational activities and operational procedures

SF has obtained the standard of occupational health and safety management Percentage of business operations

system (ISO 45001) certification required for all business operations covering 03 Identify sources of safety risks

all employees and contractors ensuring uniform implementation of high safety covered by ISO 45001 is 100%standards throughout the network. Identify hazardous sources from the four elements of “people materials managementand environment”

Shenzhen S.F. Taisen Holding (Group) Co. Ltd. Phoenix-Wings (Shenzhen) Co. Ltd.SF Co. Ltd. Jiangxi Fengyu Shuntu Technology Co. Ltd. 04 Assess the risk level of safety

SF Group (Shanghai) Co. Ltd Shenzhen SF Comprehensive Logistics Service Co. Ltd.Guangzhou SF Co. Ltd. SF Multimodal Transportation Co. Ltd Evaluate the risk level of safety using the Level of Risk Evaluation of Operational

Shenzhen Chengfeng Commercial Enterprise Service Conditions (LEC method)ISO 45001 Guizhou SF Co. Ltd.Cer t i f i ca t ion Co. Ltd

Status Suzhou SF Co. Ltd. Suzhou Fengyutai Enterprise Management Co. Ltd 05 Safety risk classification and control

Xinjiang SF Co. Ltd. Shanghai Shunxiaofeng Distribution Co. Ltd.Identify the management layer based on the level of safety risk

SF Technologies Co. Ltd. Wuhan Shunfeng Zhida Logistics Co. Ltd.Shenzhen Fenglang Supply Chain Co. Ltd. Shenzhen Xingshun Intelligent Supply Chain Co. Ltd.GZ SF Pharmaceutical Supply Chain Co. Ltd. 06 Develop risk control measures

Control measures include but are not limited to engineering and technical measures

management measures education and training measures personnel protection measures

and emergency measures

25 The data on the casualty rate per million shipments covers all SF employees and contractors.102 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 103

Safety Risk Hierarchical Management and Control Investigation and Management of Potential Safety HazardsSF uses the LEC risk assessment method to assess safety risks and determines the risk value by calculating the product In 2024 SF continues to deepen the production safety assessment mechanism of “headquarters supervision and regionalof the likelihood of occurrence of the event (Likelihood) the frequency of exposure to the hazardous factor (Exposure) self-examination” comprehensively improve the independent safety management capabilities of each region ensure that

and the the severity of the consequences (Consequence) providing scientific basis for risk quantification. According to the safety management has no blind spots and fundamentally reduce or eliminate potential safety hazards.requirements of the Regulations on Hazard Source Identification Risk Assessment and Control Management all regions

carry out comprehensive safety risk identification and assessment work at least once a year and divide risks into four Improve the Normalization Mechanism of Self-examination and Self-correction

levels according to the principle of risk classification management and control: material risk major risk general risk and of Major Accident Hazards

low risk. They define the risk management and control levels to ensure that all potential safety risks are timely identified

evaluated and effectively controlled. In order to strengthen the investigation and management of hidden dangers of accidents SF revised and improved the

Regulations on the Administration of Investigation and Management of Hidden Dangers of Safety Hazards according to the

Risk Value Assessed Standards for Judging Major Safety Production Hidden Dangers of Postal Enterprises and Express Delivery Enterprises. Risk Level by LEC Method Risk Control Level Based on this each region has formulated regional-level hidden danger investigation and management measures in detail to ensure that the inspection scope covers key areas such as fire protection electricity consumption vehicles equipment

Company level (functional departments of the operation and delivery and implements hierarchical management and control of hidden dangers. As of the end of 2024 Level I: Material risk D≥320 headquarters) the company has carried out 31 headquarters-level assessment inspections 14 special inspections and 514 district-level hidden danger inspections comprehensively covering various potential risk points.Level II: Major risk 160≤D＜320 Department level (business/allocation area) Improve the Tracking and Supervision Mechanism for the Management of Major

Accident Hazards

Level III: General risk 70≤D 160 Workshop level (transit center service outlets/supply ＜ station) According to the requirements of the Regulations on the Administration of Investigation and Management of Hidden

Dangers of Safety Hazards the Company has established a strict mechanism for removal of potential hazards and clarified

Level IV: Low risk D＜70 Team/position level rectification measures plans responsibilities and emergency plans. The main responsible persons at all levels supervise

the rectification of potential safety hazards throughout the entire process and the safety management organization or

personnel verify the rectification situation to ensure closed-loop management of potential hazards and achieve dynamic

clearing. In 2024 a total of 1298 potential safety hazards of various types were discovered in headquarters-level

In 2024 the company dynamically updated and hierarchically controlled 835 identified safety risk sources based on the assessments and inspections and more than 210000 potential hazards of various types were reported through the system

systematic health & safety risk assessment of the workflow of 40 regions and all positions across the entire network. By in various regions of the entire network all of which have been rectified as planned.establishing a risk list management mechanism formulating targeted control measures and carrying out special capability

improvement training for safety management personnel the whole process closed-loop management of safety risks is Establish and Improve the Database of Potential Safety Hazards Investigation

realized. and Analysis Mechanism

At the same time the company has established an open and transparent safety communication mechanism encouraged

employees to actively make suggestions and suggestions through diversified channels promptly discovered and prevented SF has established a three-level database of potential safety hazards from headquarters-region-site through systematic

potential safety risks promoted the continuous improvement of safety management level and jointly built a strong corporate and online collaborative documents to achieve full summary and inventory management. By regularly holding special safety

safety defense line. meetings or setting up safety topics notifying key issues and common hidden dangers the direct management department conducts in-depth analysis of causes identification of responsibilities suggestions for improvement and special rectification

and improvement forming a continuously optimized safety management mechanism.Promote Advanced Management Engineering Management System

Fengsheng APP working group Management and Regional Management of Key Accident Risks

Relevant functional departments jointly carry out special governance work for high-risk areas on the site such as charging

areas platform areas and areas of diversion of people and vehicles as well as high-risk operations such as second-

wheel and third-wheel charging cage truck operation handcart operation forklift operation and large-scale loading and

Safety information system unloading. SF focuses on accident risks such as fire mechanical injury vehicle injury and fall from height outputs key

risk management and control measures to each business unit in real time and regularly reviews the management effects

to ensure that high-risk areas are effectively controlled.Channels for

employees to

escalate safety

incidents 100% 100%

Proportion of regions that have accepted the company’s Percentage of distribution centers26 that has been evaluated

Fengsheng APP's "Golden safety production system evaluation by the company in terms of safety production systems

ideas" and "Sound

transmission" functions In addition in order to continuously improve the overall level of flight safety SF Aviation strictly implements the alcohol

testing system for team members and arranges aviation doctors to conduct alcohol testing and spot checks on the

departure crew members of an outside station for 1-2 days every month to ensure that the crew members fully meet the

Trade union hotline trade safety requirements when performing their tasks providing a solid guarantee for air transportation safety.union service number

26 The distribution center is a specific area used for receiving storing loading and dispatching goods in the logistics transportation process.104 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 105

Rectification of Key Hidden Dangers Occupational Health and Safety training

In 2024 the company has carried out more than 20 special rectification activities for various risks including: SF has built a comprehensive safety training system to provide customized training content according to different ranks

and job requirements. In 2024 the company establishes a safety knowledge map and safety management matrix. The

training content includes six major areas: legal compliance safety production management traffic safety emergency

Comprehensive safety improvement work Special safety rectification work management delivery safety and occupational health. It not only covers basic safety knowledge but also goes deep into

relevant policy requirements and risk management in specific work scenarios to ensure that employees have safety skills

* Investigation and rectification of hidden dangers of major * Regarding the standardization and standardization that match their responsibilities.accidents in production safety inspection of business/workplace signboards

* Special rectification actions of “three systems” for delivery * Special rectification of potential safety hazards of In order to continuously improve the safety awareness of all employees the Company carries out diversified safety

safety handcart education activities through a combination of online and offline methods:

* Notice on carrying out the 100-day safety activity of * Carrying out quarterly inspections of hidden dangers“eliminating hidden dangers containing accidents and of transit equipment ● Offline training: SF regularly carries out training activities including safety productionsafeguarding peak periods month safety knowledge competition safety hazard investigation Spring Festival * Carrying out quarterly fire safety inspections business peak guarantee venue standardization improvement and so on to strengthen

* Carrying out safety assurance activities during the peak % * Special rectification of forklift foot stopper employees’ safety practical ability; 100

business period at the end of the year and the beginning Safety training coverage

of the year in 2025 * Carrying out special rectification of telescopic in 2024 (including

machines

* Carrying out joint safety inspections at the end of 2025 ● Online publicity and implementation: Through platforms such as safety information employees and

account and Fengsheng APP targeted safety tips and guidance are sent to employees contractors)

during key nodes such as holidays business peak periods and seasonal changes to

ensure that safety awareness is deeply rooted in people’s minds.Contractor Safety Management

SF implements the health and safety management standards and performance metrics consistent with the company’s Senior Management

internal health and safety management standards for all contractors and their personnel regularly supervises and audits Hold “professional lectures” to facilitate the exchange of excellent management experience thus

the safety management performance of contractors and ensures that all employees (including contractors) are included in empowering senior management by equipping them with safety management skills.the company’s health and safety performance metrics system. Through the whole process management mechanism the

company integrates safety requirements into all aspects of contractor introduction inspection evaluation and elimination

to ensure the safety and controllability of the supply chain.Safety management professionals

Provide various forms of training for safety management professionals within the network including

The company incorporates safety management requirements into the internal sharing sessions external tutoring sessions and special safety training.contract terms signs safety management agreements with contractors

Introduction stage: and clarifies safety responsibilities and standards. In 2024 the signing rate

of contractor safety management agreements reaches 100% eliminating All workforce

potential safety hazards from the source. Develop their own safety training agenda by each region across the network and provide

standard safety training for all employees (including contractors) in the region.SF Safety Training System

The Company conducts third-party safety assessment on contractors at

least once a year and requires rectification or direct elimination of non- 2024 SF Safety Training Performance Data

compliant suppliers to ensure the implementation of high standards of

Inspection and safety management. In 2024 the company conducts safety management covering all employees and a total

assessment stage: capability assessment and inspection of more than 300 contractors in SF conducted a total of with a cumulative number of training time of

31 regions and 105 grassroots sites covering key indicators such as

qualifications safety protocols safety assurance plans and training 198000 703000 10.35 million

records. safety trainings participants hours

Primary Safety Management Qualification Requirements for SF’s Contractors A total of 19 safety trainings were conducted for safety management professionals covering 6385

people including:

Essential qualification requirements for the contractors include:

(1) Having a business license that matches the business services it provides; 12 3 4

(2) No major or above level work safety accident within one year; Safety management External tutoring sessions Special safety trainings

(3) Having applicable personnel qualification certificate special equipment use registration certificate and transport vehicle sharing sessions

license;

SF provides internal training resources for safety management personnel to obtain professional qualification

(4) Purchasing necessary insurance for employees such as transportation warehousing or personal injury (accident) certificates. As of the end of the reporting period the number of employees holding safety qualification certificates

insurances.reached 504.106 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 107

In terms of aviation safety training SF Aviation actively monitors crew flight quality data conducts in-depth analysis of

typical violation incidents and monthly incident incidence TOP3 personnel and accurately identifies potential risk points. Building a Responsibility Value Chain

Based on the data analysis results the Company regularly conducts special trainings such as technical evaluation and

intensive simulator training to comprehensively improve the technical level and emergency response capabilities of crew

members and ensure that each crew member can meet and maintain the highest safety standards. SF always regards supplier management as an important link of sustainable development upholds the core value

of “honesty as the way” and is committed to building a cooperative environment of equality respect transparency

development win-win and sunshine. The company has established long-term stable mutually beneficial and win-win

strategic cooperative relationships with suppliers to jointly build a responsible and sustainable supply chain ecosystem.Supplier Management System

SF has built a comprehensive supplier management system strictly implemented the supplier management system andcontinuously improved the ESG risk management capabilities of the supply chain. In 2024 the Company issued the “SF’sCode of Conduct for Suppliers” and other systems incorporating ESG requirements such as business ethics safety and

occupational health labor and human rights and environmental protection into the terms of supplier contracts and regularly

reviewing supplier performance. For suppliers who have major disputes and fail to rectify on schedule the company will

terminate cooperation to ensure the stable operation of the supply chain.Procurement Supervision and Management Structure

Safety Emergency Drills The procurement activities of SF Group are undertaken by

SF strictly complies with the requirements of the Emergency Response Law of the People’s Republic of China and the the procurement supply chain center and decisions are Procurement Decision

Work Safety Law of the People’s Republic of China and has established systematic and standardized emergency response made on major procurement matters through the collective

procedures and norms. The Company has established an emergency plan system covering various emergencies which decision-making mode of the procurement committee. In

Risk Monitoring

Procurement Committee

provides clear and operable action guidelines for internal operations and significantly improves employees’ ability to order to ensure the risk supervision of the procurement

of Procurement

respond quickly and effectively to emergencies. process SF has an independent risk supervision

Activities

organization to strictly monitor the whole procurement Procurement Supply Chain Center Risk Monitoring

In order to continuously test and optimize emergency plans SF organizes two large-scale fire emergency drills every process and at the same time an internal control group

Organization

year in accordance with national regulations and continuously strengthens the emergency response mechanism through in the procurement supply chain center has been set up to

Management and Execution

actual simulation to ensure that actions can be taken quickly and orderly when emergencies occur to minimize losses and conduct self-examination and self-correction.Procurement

impacts. In addition the Company regularly conducts emergency drills in various fields such as explosion prevention anti-

terrorism transportation and public health and conducts special drills for business scenarios such as forklift accidents Procurement oversight and management structure

equipment injuries high temperature and heatstroke so as to comprehensively improve the Company’s comprehensive

capabilities in safety emergency response. Supplier Lifecycle Management

In order to enhance employees’ safety awareness and emergency response capabilities and ensure the safety of the

company’s property express delivery and personnel lives the company organizes network-wide safety knowledge training Access accreditation Classification and grading

and emergency drills in 2024 and rewards regions that actively organize drills and perform well. The requirements for supplier admission According to the supplier’s cooperation

certification are clarified in terms of performance the Company adopts

admission channels admission conditions differentiated and dynamic grading and

and certification audit process. classification management for suppliers.In 2024 more than 9000 fire safety trainings and emergency

drills are held with a cumulative number of participants reaching more

970000 Performance management Routine managementthan .

The Company establishes a scientific Three mechanisms have been established

and rational performance management to strengthen the routine management

and evaluation mechanism develops of suppliers: a training and coaching

quantifiable performance evaluation mechanism a routine audit and inspection

criteria and conducts multi-departmental mechanism and an information change

performance evaluations. approval mechanism.Penalty management Exit management

For suppliers with breach of contract There are two forms of supplier exit

and discipline in the course of business management: penalty exit and non-penalty

cooperation penalties are imposed with exit to standardize the supplier exit process.reference to the SF Group Supplier

SF fire emergency drills Penalty Management Measures.108 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 109

Supplier Digital Intelligent Management In 2024 the Company continues to promote environmental and social responsibility practices in the supply chain through

the following measures to build a value chain that has a positive impact on society and the environment:

The company continues to promote the digital management process of suppliers and completes the construction of the

digital intelligent procurement platform (DIPP) in 2024 to realize functions such as automatic deposit collection and refund ●

electronic bidding and CA digital certificates to improve the convenience and security of supplier cooperation. In addition Sustainability survey: designed and published the “Supplier Sustainability Survey Questionnaire” covering the

the Company further improved the efficiency of supplier management and strengthened the risk management and control three dimensions of environment society and governance and comprehensively evaluated its sustainability

capabilities of supplier cooperation through tools such as supplier management board digital files and risk models. performance;

Supply Chain Risk Management

● Responsibility clauses are included in contracts: social responsibility clauses such as environmental

SF regularly conducts comprehensive assessment and identification on the environment health and safety labor rights and protection health and safety and labor rights are included in supplier contracts to clarify ESG requirements;

moral hazards of suppliers based on their locations industries and business categories and systematically evaluates the

performance of suppliers through a combination of on-site audits and written audits. According to the evaluation results the

company formulated targeted training and improvement plans clearly required suppliers to make rectification within a time

limit and continuously followed up their improvement progress. At the same time suppliers with outstanding performance ● Certification attention: during the supplier admission and evaluation stage focus on the certification of its

are evaluated and commended and benchmark cooperation cases are established to promote the improvement of the ISO environmental management system occupational health and safety management system and information

overall level of the supply chain. security management system;

In 2024 SF conduct comprehensive evaluation management of suppliers: ● Regular assessment and examination: incorporate the practical performance of suppliers in environmental

and social responsibility into regular assessment indicators to promote continuous improvement;

● Assessed 1422 key suppliers with 100% coverage

● On-site audits of over 1392 suppliers with an audit pass rate of 91.3% ● On-site audit and support: Conduct on-site audits of suppliers around key environmental and social issues

● The number of significant suppliers assessed as having significant actual or potential negative impacts was provide rectification opinions and support to suppliers with problems and help them improve their sustainable

121 development capabilities.

● Percentage of significant suppliers assessed as having significant actual or potential negative impacts with

corrective actions reached 40.5%

● Among the significant suppliers assessed as having significant actual or potential negative impacts the number

In 2024 all of SF's suppliers signed social responsibility agreements with a coverage rate of 100%.of suppliers that terminated cooperation was 72

● In the process of supplier implementation of corrective action plan the number of important suppliers supported

by SF plan is 49 and the actual support is 49 with 100% coverage rate

1 18 Building a Sustainable Supply Chain● Carry out supplier evaluation work selecting annual strategic supplier outstanding suppliers and

62 other individual awards and excellent award suppliers totaling 81 SF adheres to the cooperation purpose of honesty fairness and justice establishes transparent access standards fair process management mechanism and fair supervision mechanism builds a responsible and sustainable procurement

environment and helps achieve long-term win-win results with partners.Supplier Environmental and Social Impact Assessment Green Procurement

The Company attaches great importance to the performance of suppliers in terms of environmental and social responsibility

and through strict regulations and guidance ensures that suppliers meet the requirements in the fields of environmental SF has formulated the Green Procurement Management Regulations to integrate environmental protection requirements

protection safety and labor rights and interests and promotes suppliers to strengthen their own environmental management into the whole life cycle management of suppliers. Enhance the sustainable development awareness of procurement

safety and other social responsibility performance to achieve the long-term win-win development goal. management professionals through online and offline training and publicity. In procurement decisions SF gives priority to

environmentally friendly products and services in order to save energy water and material reduce resource consumption

and environmental pollution and promote the implementation of green procurement concepts.Environmental protection Health and safety Labor requirements and protection

Procurement Integrity Management

Environmental permitting SF continued to improve the anti-corruption compliance management system formulated the Sunshine Procurement

and reporting Labor requirements Notification Letter clarified the responsibility of both parties for integrity and co-construction and signed the Integrity and Occupational safety

Fairness and equality Integrity Agreement with suppliers strictly prohibiting the soliciting offering and accepting bribes and ensuring the legal Pollution prevention Emergency preparedness and transparent business activities. In 2024 the company introduced an on-site auditor mechanism to identify potential risks

Exhaust emission Employee protection and correct them in time through on-site audits of suppliers’ production sites and detailed checks of suppliers’ information

submitted by suppliers so as to improve supply chain transparency.110 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 111

ESG capability improvement: SF carry out long-term supplier capability building support projects for specific ESG topics

systematically improve the ESG management practices and performance of suppliers and promote the overall sustainable

In 2024 the signing rate of Supplier Integrity and Integrity Agreements reached 100%. development level of the supply chain.In addition to ESG training SF also provides other comprehensive and systematic training and support to suppliers to help

them better understand and implement the company’s procurement management requirements.

1 Registration All suppliers are required to proactively declare the conflict of interest relationship with 100% of declarations in 2024.

Build Communication Bridges and Deepen Win-Win Cooperation

2 Bidding In 2024 SF held an industrial construction supplier Supplier affiliation is monitored to prevent their collusion with other SF suppliers. conference inviting a total of 114 representatives

from 53 industrial construction suppliers (including

construction general contracting decoration and cold

storage engineering) who have participated in the

3 The Integrity Agreement shall be signed. Reporting channels should be clearly stated in

company’s project cooperation in the past two years

Contact the framework master agreement sub-agreement and bidding documents. If suppliers to attend the conference. The conference focused on

conclusion discover acts such as solicitation of bribes they can report the complaint. conveying SF’s procurement management philosophy

work process project management objectives and specific

Supplier Anti-corruption Initiative requirements enhancing suppliers’ understanding and

recognition of SF’s management system promoting their

efficient performance of contractual obligations and

At the same time SF continues to upgrade its digital and intelligent procurement management system and has realized further consolidating the long-term and stable cooperative

early warning of collusive bidding behavior and identification of blacklisted supplier relationships ensuring that dishonest relationship between the two parties. SF held industrial construction supplier conference

suppliers cannot enter the company’s supply chain system preventing potential commercial bribery and unfair competition

and maintaining the company’s reputation and compliance.In 2024 SF conducted 2 anti-corruption trainings with 9096 System Switching Training to Ensure Smooth Business suppliers participating.On December 24 2024 SF held a DIPP (Digital Intelligent Procurement Platform) system operation training and

exchange meeting to conduct special training on switching the procurement system from SRM to DIPP. The meeting

attracted more than 150 suppliers to participate. Through in-depth explanations and practical drills it ensured that

Supplier Training suppliers were proficient in the operation of the new system ensured the smooth connection between the two

parties’ businesses and further strengthened the cooperative relationship.SF’s systematic supplier empowerment plan covers three dimensions: ESG training ESG practice benchmarking and

ESG capability improvement. By regularly sharing industry insights and best practices in the fields of on-time delivery and

quality management it helps suppliers comprehensively improve ESG management level and performance. In 2024 SF

conducted a total of 1273 hours of supplier training achieving full coverage of key suppliers.Equal Treatment of Small and Medium Enterprises

ESG training: Provide comprehensive ESG training to all suppliers to ensure that each partner understands and follows

the company’s ESG standards and requirements. The training content covers key modules such as anti-corruption quality

management and environmental protection to help suppliers improve their ESG awareness and practical capabilities. SF actively supports medium small and micro enterprises and promotes supply chain diversification and inclusive development. In 2024 the company disclosed the payment information of small and medium-sized enterprises to the public

ESG practice benchmarking: The Procurement Supply Chain Center communicates with suppliers on sustainable in the national enterprise credit information publicity system in accordance with regulations and there was no overdue

supply chain management matters shares industry best practices and helps suppliers identify their own gaps and take payment of small and medium-sized enterprises. At the same time in some low-risk business scenarios the registered

improvement measures to meet SF’s sustainable development requirements. capital requirements of suppliers are reduced to help small medium and micro enterprises participate in the company’s business.112 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 113

Sustaining Commitments to Social Wellbeing Help Agricultural Products Upstream

In 2024 SF actively responded to national policies and joined hands with local governments to build regional agricultural

product brands. While opening up and building online sales channels for agricultural products SF has achieved the

SF always regards giving back to the society as its corporate mission gives full play to the advantages of digital operation unity of the company’s business development and social value. For key agricultural product projects SF worked with

and responsible supply chain actively participates in rural revitalization education charity medical assistance social local governments and associations to plan various product promotion activities including but not limited to online/offline promotion meetings harvest festivals picking festivals catching festivals e-commerce festivals exhibitions and

disaster assistance and other fields fulfills social responsibilities with practical actions and promotes social harmony and other forms and took multiple measures to improve the communication efficiency and promotion ability of agricultural

sustainable development. brands. At present the company has assisted in building more than 50 regional brands of agricultural products and held

promotion meetings and logistics solution conferences for fresh agricultural products such as Yangcheng Lake hairy crabs

Dandong strawberries Xinjiang beef and mutton in the peak season to promote the development of agricultural industry

and contribute to rural revitalization.Rural Revitalization The company adheres to the concept of “promoting agriculture with quality and empowering brand” and realizes the transformation of agriculture from “increasing production” to “improving quality” through three processes: increasing value

building brand and setting standards. For example after six years of regional brand building in conjunction with Xianju County

As a leading comprehensive logistics service provider in China SF has always closely linked corporate development with the company has turned bayberry into the endorsement product of Xianju. Hand in hand with Suzhou City for 17 years

social responsibility. Relying on its leading logistics network advanced packaging technology and efficient distribution Yangcheng Lake hairy crabs have become a national famous brand and the output scale has increased from about 3000

capabilities SF has deeply cultivated the field of agricultural products delivery actively helped agricultural products tons to 10000 tons per year. At the same time the company continues to strengthen the research on carton packaging

upstream and industrial products downstream consolidated and expanded the achievements of poverty alleviation and starting from the four dimensions of “fresh-keeping function” “recognizability” “cultural attributes” and “green environmentalhelped rural revitalization. protection” and provides 16 fresh food projects such as matsutake strawberries beef and mutton poultry and fish and 22 room-temperature projects such as tea flowers and seedlings oranges etc. creating more than 40 exclusive carton

packaging and continuously improving the market competitiveness of regional characteristic agricultural products. The

company’s service network to help agricultural products rise has covered more than 2800 county-level cities across the

country serving a total of more than 5500 fresh varieties. In 2024 SF delivered approximately 6.3 million tons of specialty

agricultural products. It is expected to help farmers generate more than RMB100 billion in income and drive local agricultural

transformation and upgrading and farmers’ income increase and wealth.As of the end of 2024 SF’s agricultural supply network spans over 2800 county-level cities nationwide

Shaanxi fresh dates Chagan Lake fish covering over 5500 fresh product varieties. In 2024 it transported approximately 6.3 million tons of specialty

Shaanxi kiwifruit Jilin ginseng agricultural products projected to generate over RMB100 billion rural income.Dried fruits in Xinjiang

Donggang strawberry

Xinjiang fresh fruits

Gansu wolfberry Inner Mongolia beef and mutton

Xinjiang medicinal herbs Gansu apples Beijing juicy peach

Gansu beef and mutton Dalian cherry Yantai Cherries Go Global: SF Express Delivers Fresh Chinese

Ningxia beef and mutton

Yantai cherry

Ningxia wolfberry

Shanxi apple Flavors Worldwide

Qinghai Golmud wolfberry

Ningxia fresh dates

Rushan oyster In April 2024 the first batch of Yantai cherries departed from Yantai and delivered to Singaporean consumers

within 48 hours via SF. This is the first time that Yantai Cherry has been delivered to overseas countries byTibetan cordyceps sinensis Hairy crab (nationwide) express delivery so that global consumers can feel the delicious experience of “real-time freshness “ throughexpress delivery.Sichuan orange Anhui herbal medicine

Hubei orange

Yangshan peach

Sichuan pomegranate Anhui tea

Hubei crayfish SF works closely with local fruit farmers cooperatives and relevant

Sichuan cordyceps sinensis government departments in Yantai to optimize and upgrade cherry

Xianju waxberry planting harvesting packaging transportation and other links in an

Fuzhou tea all-round way so as to ensure that every Yantai cherry going to theQuanzhou tea international market carries the excellent quality of “China’s fresh fruitYunnan matsutake mushrooms business card”. In order to ensure the freshness and quality of cherries

Xiamen seafood during transportation SF has developed a new modified atmosphere

Guangxi dragon fruit

Yunnan coffee

Dongguan durian fresh-keeping box as packaging material which does not require pre-

Guangxi orange cooling treatment and will not produce any peculiar smell during the

East Guangdong pomelo fresh-keeping process. This crisper can keep cherries fresh for up to 60

hours providing a longer appreciation period so that consumers can

enjoy fresher and more delicious cherries.Hainan mango

Yantai cherry “going global” is not only a successful example of

West Guangdong longan

South Jiangxi orange international trade of agricultural products but also an important practice

West Guangdong lychee for SF to help transform and upgrade local characteristic industries and

West Guangdong seafood promote the implementation of rural revitalization strategy. The whole

supply chain solution provided by SF not only solves the problems of

short shelf life and difficult transportation of cherries but also increases

SF’s service network for delivering agricultural products the income of fruit farmers through stable export channels. At the same

time cherry export business has driven the development of packaging

materials cold chain logistics e-commerce services and other related SF helps Yantai Big Cherry enter the

industries creating new economic growth points for Yantai. international market114 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 115

Deeply Cultivate Rural LogisticsSF Successfully Held the First “Golden Autumn UpstreamAgricultural Products Promotion” in Northern Jiangsu SF continues to deepen the rural delivery business constantly improves the construction of the logistics system at the

county township and village levels helps agricultural products upstream and industrial products downstream and better

meets the express delivery needs of agriculture rural areas and farmers.In October 2024 the first Golden Autumn North Jiangsu AgriculturalProducts Upward Promotion Conference of “Premium AgriculturalProducts SF Fresh Delivery” was successfully held. The activity In 2024 the company increased investment and support for the construction of rural terminal networks actively promoted

aims to aggregate various resources broaden the “online + offline” the development of the rural logistics industry and provided positive support and contribution to the realization of the rural

sales channels of agricultural products and build an integrated revitalization strategy. Initiatives include:supply chain service system of “planting-production-supply-sales-transportation-management” through SF’s strong logistics network and

technological empowerment so as to help upgrade the agricultural

products industrial belt in northern Jiangsu and promote high-quality

agricultural products to a broader market. Encrypt Optimize Standardize

In order to help upgrade and transform the agricultural products rural express Improve the terminal

industry belt SF in conjunction with government and enterprise terminal transit quality of post station

counterparts helps regional brands open up more circulation channels The launching ceremony of the first channels mode employees constructionby connecting agricultural products channel distributors sellers MCN “Golden Autumn Upstream Agricultural Productsorganizations and online celebrity live broadcast experts. With the Promotion” in Northern Jiangsu

help of marketing methods such as short video and live broadcast

blueberries in northern Jiangsu have gained higher exposure and opened up sales through live broadcast resources.In terms of production and marketing docking SF relies on its own superior resources to carry out “agriculturalproducts-supermarket” docking “agricultural products-wholesale market” docking and direct sales activities of Provide more convenient Carry out regional Carry out strict pre- Build a standardized

agricultural products for agricultural products and continuously broadens the sales channels of regional agricultural and people-fr iendly distribution in county job training and skills service image of terminal

products. services in rural areas towns reduce express clearance and regularly post stations unify the VI

The successful holding of “Golden Autumn Upstream Agricultural Products Promotion” in Northern Jiangsu not and provide diversified loading and unloading conduct professional image and indoor layout

only promoted the close cooperation between agricultural products production enterprises and sellers in northern services such as door- and transit links reduce skills upgrading training of terminal post stations

Jiangsu but also provided new impetus and opportunities for the upgrading of agricultural products industrial belt. to-door self-pickup exp ress damage for employees to provide conf igure recept ion

and delivery to villages and improve delivery users with professional areas and enhance the

in rural areas through timeliness. and warm services. sending and picking

various modes such as experience of rural

self-operated outlets elderly people.township agents and

service stations

“Live Broadcast + Logistics” Empowers Agricultural Products

Production and Marketing UpgradesSF innovates the model of “regional characteristic premiumproducts + live e-commerce + modern logistics” superimposes the

synergistic effect of “1 +1 +1 > 3” and helps the branding and sales After the construction of rural terminal networks in 2024 more than 100000 village-level co-distribution station cooperation

increase of agricultural products. Relying on its own platform and points were developed on the basis of more than 30000 outlets in the entire network. A relatively complete rural express

external resources the company cooperates with the government delivery network has been formed allowing farmers to enjoy more convenient express delivery services in the village.customer anchors and local fruit farmers to carry out live broadcast

activities. With the help of brand influence and Internet celebrities

it promotes live broadcast in producing areas and broadens the

production and sales channels of agricultural products.In December 2024 SF joined hands with “Hui” to hold a special live As of the end of the Reporting Period SF had over 100000 village-level post station cooperation

broadcast of navel oranges in Fengjie Chongqing. By demonstrating

navel orange planting skills tasting navel oranges and experiencing points and the county-level coverage of network services was 98.9% 95.1% at the township level SF escorts Fengjie navel orange delivery

the fun of picking more than 600000 orders of navel oranges

(about 3 + million kilograms) were sold within two hours exploring and the village-level coverage was 96.8%.a replicable and promotable cooperation mode of “fresh origin + live broadcast e-commerce + Internet logistics”.Combining the historical flow and experience SF reserved the trunk capacity of Jiangsu Shandong and Anhui in

advance for the Fengjie navel orange live broadcast and arranged for on-site support by more than 30 couriers

to ensure that more than 70000 ticket orders were issued on the same day and delivered to consumers within 24

to 72 hours.116 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 117

Public Welfare and Charity

SF is well aware that enterprises and society are closely related and never forgets its original aspirations continues to

devote itself to public welfare undertakings and actively fulfills its social responsibilities. Since the establishment of the

public welfare foundation in 2012 the company has been committed to carrying out a variety of social welfare projects and Summer Growth Camp Life

volunteer service activities in various fields such as medical care education and environmental protection and actively

giving back to the society with every action.In 2024 SF Foundation and Shenzhen University jointly hosted the 9th Growth Summer Camp providing SF

Lotus Education Aid Program students with rich experiences and in-depth learning and exchange opportunities

Educational Charity and feeling the academic and cultural atmosphere of first-class universities. The event was held from July 27 to

August 3 2024 attracting 300 high school students and 62 teachers from 38 counties of the SF Lotus Education

SF Lotus Education Aid Program Aid Program to participate. 47 college student volunteers from the feedback program provided full volunteer services to help students grow in practice and gain in communication.Since its launch in 2012 SF Lotus Education Aid Program has helped students in need to successfully complete

their studies through systematic application process in-depth family visits continuous financial support and all-round

companionship and counseling cultivated them to become outstanding youth with excellent character and rich inner world

helped them adapt to social development and actively give back to society and hometown.

2024 Project Achievements

● Funding scale: 3851 new students were funded in 39 project counties and 11719 high school

students were funded in 66 cooperative project high schools throughout the year and more than RMB 25

million of grants was issued. Awarded 2033 college students and awarded scholarships of RMB 6.34

million.Fun sports meeting at the event site of the 9th Growth Summer Camp

● Cumulative achievements: As of the end of December 2024 the project has covered 67 counties (cities districts)

in 18 provinces (autonomous regions’ municipalities) across the country funded a total of 41918 students

in need and distributed scholarships and grants of RMB 260 million.In 2024 the SF Lotus Education Aid Feedback Empowerment Center was officially opened to provide convenient and

efficient learning services for feedback students. The empowerment center integrates the functions of course registration

community participation course evaluation learning duration recording and learning certificate issuance etc. which

stimulates the learning enthusiasm of students and achieves remarkable empowerment effect. The curriculum system

covers live classes recorded classes and offline classes to meet diverse learning needs.In 2024 SF Lotus Education Aid Program conducted 27 empowerment courses with a total of 4040

participants. Campers have business experience at SF cold storage

In addition SF Lotus Education Aid Program provides interesting and meaningful practical experiences for feedback

students by carrying out a variety of public welfare activities helping them grow become aware of themselves and

establish faith in the activities.In 2024 the SF Lotus Education Aid Program carried out a total of 121 public welfare and community activities

attracting more than 1800 feedback students to participate and the cumulative number of beneficiaries

reached 7398.118 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 119

SF Liangshan Charity Class Program

Children’s Congenital Heart Disease Screening and Rescue

SF Liangshan Charity Class Program is a welfare public program cooperated by SF foundation and Liangshan Yi Health Tour

Autonomous Prefecture Mawei Development Center (the former Liangshan Yi Women and Children Development Center).It aims to provide warmth and hope for Liangshan dependent children (children who have lost their fathers or mothers and

have nothing to rely on in their lives) and female high school students in poverty. The program is committed to improving In 2024 SF Care helped cooperative hospitals to carry out disease screening rescue and follow-up work on the

the living conditions of dependent children in Liangshan supporting female high school students in difficult circumstances to front line through a combination of “joint hospitals to carry out congenital heart disease screening” and “supportingcomplete their education and providing them with equal access to educational opportunities and resources. The program is hospitals to establish green channels” and promote the “early detection early treatment and early recovery” of

committed to improving their living conditions supporting female high school students in need to complete their education children in distress while promoting the construction and development of hospital-related disciplines.providing them with equal access to education and enjoying equal educational resources.* Joint hospitals to carry out congenital heart disease screening: In 2024 SF Care and Shenzhen Hospital ofthe University of Hong Kong carried out the “SF Care – Children’s Congenital Heart Disease Screening andRescue Health Tour” project in Chayu Xizang and Longsheng Guangxi screening a total of 1164 childrenestablished a long-term sustainable green rescue channel helped project sites gradually realize the “dynamicclearing” of children with congenital heart disease.

2024 Project Achievements* Support hospitals to establish green channels: SF warmly supports Henan Chest Hospital to carry out the “2024Children’s Congenital Heart Disease Screening and Rescue Project in Kashgar Xinjiang” and Wuhan Asian

● Scale of funding: Throughout the year a total of 234 students in distress were funded in 4 classes 25 Heart Hospital to carry out the “2024 Children’s Day Love Tour Project” to open up the “SF Care Rescue GreenChannel” a total of 116 children with congenital heart disease were funded to successfully complete treatment

Love Classes were established and 1410 children and girls in distress were funded in Liangshan. and regain their healthy hearts.● Activities: Organize Beijing winter camp study tour and summer camp activities to enrich students’ holiday life.Medical Assistance

SF Care – Children Medical Assistance Program (“SF Care” for short) is committed to providing support for children aged

0-18 suffering from related diseases and difficulties allowing children to be detected treated and recovered early in terms

of medical assistance and humanistic care. Help children grow up physically and mentally and at the same time build aserious illness relief network for children mainly based on hospitals in central and western provinces. Promote “seriousillness does not leave the province” and the development of children’s medical industry.As of the end of 2024 SF Care Program has invested a total of RMB 481 million to help 24259 seriously ill children and

orphans in distress and provide humanistic care services to 40806 children families and medical staffs.Children’s Congenital Heart Disease Screening and Rescue Children’s Congenital Heart Disease Screening and Rescue

Health Tour in Chayu Xizang Health Tour in Longsheng Guangxi

2024 Project Achievements

● Rescue scale: 2881 children and orphans with serious illnesses in distress were newly rescued of

which 2198 children with congenital heart diseases hematological diseases and malignant tumors

were rescued by 15 self-operated designated hospitals an increase of 3% compared with 2023;

● Humanistic care: Throughout the year it provided humanistic care services such as heart-warming care

growth companionship and medical support covering 5003 children parents and medical staff and

1376 Children’s Congenital Heart Disease Screening and Rescue Children’s Day Love Tour in Yaxi Qinghaidistributed heart-warming energy packages. Health Tour in Kashgar Xinjiang120 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 121

Heart-Warming Care Activity: Sharing Happy Hours with Children SF All-Cargo Plane Rushed to Xizang for Earthquake Relief

In 2024 the SF Care Project join forces with 9 cooperative hospitals

to jointly carry out “Heart-warming Companion Enjoy Children’s Day” On January 7 2025 a 6.8-magnitude earthquake occurred in Tingri

and “Heart-warming Companion Celebrate National Day” through County Shigatse City Xizang. SF quickly activated the emergencythe “Humanistic Care Quarterly Theme Activities + Multi-department response mechanism gave full play to the advantages of aviationLinkage of Project Cooperative Hospitals”. The two themed activities network quickly completed the route filing and approval deployed

provided heart-warming care services to 588 children and parents B757-200 all-cargo plane and experienced flight and ground crew

in the hospital and shared the happy holiday hours. The activity not and sent two flights from Chengdu and Kunming on the afternoon of

only promoted the goal of wide coverage of humanistic care but also January 8th to transport about 6 tons of first aid supplies to Lhasa. On

provided strong support for the work of cooperative hospitals in the the morning of January 9 SF opened two freight routes “Wuxi-Lhasa”

field of humanistic care for children further enhancing the treatment and “Shijiazhuang-Lhasa” transporting about 11200 pieces and nearly

experience and rehabilitation confidence of children.Heart-warming Companion Celebrate 42 tons of relief supplies including warm clothing quilts blankets food

National Day and tools and equipment. After the goods arrived in Lhasa they were

quickly transported to Shigatse through the ground trunk line providing

solid support for post-disaster reconstruction and logistics support in

the disaster area.Emergency Response and Disaster Rescue

In the face of emergencies and natural disasters SF has always regarded serving the society and safeguarding people’s SF helps Shigatse earthquake relief

livelihood as its own responsibility actively participated in social disaster relief and emergency public welfare projects

mobilized emergency resources of the entire network to support disaster relief as soon as possible and relied on its own

resource advantages and efficient organization and deployment capabilities to continue to contribute due efforts to protect

life and social security.In 2024 SF provided emergency assistance to typhoon relief in Hainan and earthquake relief in Xizang. Relying on its

advantages in transportation resources SF urgently transported relief materials to disaster areas for public welfare and Deploying AED Equipment at Outlets to Improve Emergency

donated materials and funds for the reconstruction of disaster areas. The company continues to pay attention to the disaster Response Capabilities

situation dynamically dispatches rescue forces and provides assistance and support for post-disaster reconstruction.In 2024 SF launched the social good emergency public welfare project taking the lead in deploying AED equipment

at 100 outlets in Shenzhen allowing first aid equipment to enter the community and be close to residents and

improving SF’s emergency response capabilities in emergencies. This action not only demonstrates the leading

and exemplary role of the industry but also comprehensively improves SF’s volunteer service level and builds a

SF “Vegetable Charter Flight” Rushes to Hainan Urgently wide-ranging life protection network.In September 2024 super typhoon “Capricorn” made landfall along the coast of Wenchang Hainan and Xuwen

Guangdong and sailing in the Qiongzhou Strait was suspended. In order to further ensure the transportation of people’s

livelihood materials and fully ensure the supply of people’s livelihood materials SF urgently coordinated all-cargo plane

resources and invested in “Vegetable Charter Flight” to ensure the supply

of vegetables in Sanya. On September 7th two all-cargo planes landed in

Sanya carrying 85 tons of vegetables. From the evening of the 7th to the

8th SF Airlines flew a total of 10 dedicated flights to focus on ensuring

the transportation of people’s livelihood materials in Hainan.In addition to the investment of all-cargo aircraft SF also undertakesthe sorting transportation and supply guarantee of Sanya’s “VegetableBasket” project. In order to ensure the smooth circulation of “VegetableBasket” products during the typhoon the company worked closely with

Sanya “Vegetable Basket” to optimize the distribution system increased

the number of transportation vehicles and personnel and ensured that

vegetables can be delivered to designated stations in a timely and safe

manner. In the four days from September 5th to September 8th alone SF

guaranteed a total supply of more than 70000 kg of vegetables.During the fight against the typhoon SF also completed the relevant

support tasks of Hainan Provincial Emergency Management Department

transporting more than 3000 sets of warm quilts to Wenchang City 500

sets of warm quilts to Lingshui City and urgently allocating more than

3000 life jackets. Through a series of measures SF ensured the safe

transportation of people’s livelihood materials provided a solid guarantee

for the life of Hainan residents during the typhoon and demonstrated the

corporate social responsibility and responsibility. SF guarantees transportation of

people’s livelihood materials in Hainan SF courier AED certification training site122 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 123

Services

Empowering New-Quality Productivity

Through Digital Intelligence

A new round of technological revolution is reshaping the ecology of the

logistics industry with unprecedented depth and breadth. Cutting-edge

technologies such as big data and the Internet of Things break through

the boundaries of traditional models giving birth to efficient agile green

and intelligent new logistics productivity. SF anchors the commanding

heights of technology with a forward-looking layout continues to

deepen core areas such as large model unmanned technology and big

data and builds a digital intelligent operation system throughout all

stages of “collection transit transportation and delivery” to drive leap-

forward improvement in service efficiency and customer experience. At

the same time SF accelerates its international layout improves cross-

border logistics infrastructure provides end-to-end solutions for Chinese

brands to go global and facilitates efficient collaboration of global supply

chains.Pioneering Intelligent Logistics Innovation

Empowering Enterprises Expanding Overseas

Delivering Premium Services

Securing Safety Delivery

Driving Industry Synergy and Shared Progress 05124 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 125

Pioneering Intelligent Logistics Innovation Honorary Awards

SF is committed to building an intelligent supply chain ecosystem in the digital era and aims to become the leader in the SF Intelligent Solutions for Logistics Network Planning:

intelligent supply chain sector. By leveraging deep insights into supply chain scenarios and extensive experience serving Shortlisted for the 2025 global finals of the Franz

top-tier industry clients along with continuous exploration and application of cutting-edge technologies the Company Edelman Award

enhances the efficiency of its internal logistics network while providing customers with best-in-class digitalized logistics Won the 2024 Digital Innovation Special Award of

and supply chain solutions. IDC Future Enterprise Awards in China

SF Technology’s Smart Supply Chain Control Tower for

The Company attaches great importance to innovative research and development continues to improve the innovation Enhancing Customer Experience Project:

management mechanism promotes innovation from idea to implementation and forms a closed loop of the whole process Won the 2024 Future Customer Experience Leader

from innovation cultivation innovation generation innovation implementation to innovation value by building an online of IDC Future Enterprise Awards in China

innovation platform and organizing offline innovation activities.SF Technology has been recognized as a Fenghe Sustainability Platform:

high-tech enterprise. Selected as the Green Logistics ESG Practice Pioneer

in China in 2023-2024

Selected as the IDC Sustainability Spotlight in 2024

Won the 2024 LOG Outstanding Contribution Award

Innovation Mechanism of SF for Low-carbon Supply Chain & Logistics in China

“Fengjun Cloud Mirror” a cargo airport digital twins

project:

Nominated in the first batch of 50 cases to build a

digital China

Innovation Innovation Innovation Innovation Innovation Won the 2024 Science and Technology Award of

process cultivation generation implementation Value China Federation of Logistics& Purchasing (CFLP)

SF won the 2024 Outstanding Organization The strategy optimization project of small pieces area of transit site based on digital twins:

Innovation Award in the Express Industry Innovation Innovation research center Innovation lab

Workshop Competition issued by the State Post Bureau of

Won the 2024 Science and Technology Award of

the People’s Republic of China China Federation of Logistics& Purchasing (CFLP)

Introducing innovative Conduct team brainstorming and output innovative Stimulate the reuse

thinking and tools solutions for business or technical scenarios pain value of innovation

Operation developing creative and difficulty points. to reduce costs and

mechanism skil ls st imulating increase efficiency for

creative thinking and Showcasing innovative tools methods and the company.mastering creative technical works that are small but effective in the SF Intelligent Solutions for Logistics Network Planning was

tools or methods. workplace. shortlisted for the Franz Edelman Award

SF Intelligent Solutions for Logistics Network Planning was successfully shortlisted for the 2025 Franz Erdmann Award

(known as the “Nobel Prize” in industrial engineering) the only Chinese representative in the final stage of the award. As

In 2024 the Company participated in and was shortlisted for the 2025 top six global finals of the Franz Edelman Award a core component of SF Super Brain the project focuses on solving complex problems in the planning of ultra-large-scale logistics networks and effectively responds to the multiple challenges of aviation land transportation and urban internal

the highest award in operations research and management science. Besides SF was nominated in the first batch of cases logistics networks through innovative models.to build a digital China collected by the National Data Administration and excellent cases of IDC Future Enterprise Awards

in China and won honorary awards such as the 2024 Science and Technology Award of China Federation of Logistics& At present the smart solution has been fully implemented in SF planning and optimizing more than 8000 routes and more

Purchasing (CFLP). than 200 sites on average every day improving the timeliness of more than one billion packages significantly improving

operational efficiency reducing resource waste and carbon emissions demonstrating SF’s global leading strength in the

field of logistics technology.In 2024 investment in science and technology R&D amounted to RMB3.09 billion.At the end of the reporting period SF had 4180 patents in force or pending and invention patents accounted

for 61.5% of the total patents.In 2024 SF utilized 783 invention patents in its core business operations filed 263 new invention patent

applications and received 314 invention patent grants.SF Intelligent Solutions for Logistics Network Planning listed on the official website of INFORMS126 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 127

Driven by Large Model to Reconstruct Logistics Decision-Making and Unmanned Empowerment: Reshaping Logistics Infrastructure

Operation System The Company has extensively explored and implemented automation and unmanned technology across various logistics

SF has developed logistics decision-making models and large language models tailored to the logistics and supply chain industry. scenarios driving transformation in operational models and enhancing network efficiency.These innovations significantly enhance supply chain decision-making and daily operational efficiency accelerating the industry’s

transition to intelligent logistics. Unmanned Sorting Centers

SF Logistics Decision-Making Large Model

Through the transformation of transit model the Company utilized

Leveraging years of industry expertise and underlying data the Company’s AI-driven logistics decision-making model overcomes AGV equipment for short-distance automated handling and sorting

traditional algorithm limitations significantly enhancing intelligent decision-making in logistics. This model has been successfully operations at the sorting centers. The Company’s self-developed

implemented in several industries such as cosmetics 3C food and automotive parts. Xinghe Dispatch Management Platform has been integrated into over

60 large SF sorting centers managing nearly a thousand AGVs and

Main Applications of SF Logistics Decision-making Large Model in Supply Chain Management completing over 5.2 million automated container transits.By integrating multi-modal AI technology the model extracts deep insights from product images and textual information building

Volume demand forecasting multi-scale multi-channel forecasting models that improve prediction accuracy while reducing resource consumption. In one case study the model reduced server resource usage by 80% increased computational efficiency by 120 times and improved

prediction accuracy by 5%.The decision-making large model significantly improved computational efficiency in supply chain route planning and packing Unmanned Vehicles

Decision optimization optimization. For example in terms of transportation route optimization the model can quickly respond to complex scenarios involving inbound logistics store delivery and short-haul network planning eliminating tedious customized development processes

and responding flexibly to business requirements. The Company deployed over 800 customized unmanned vehicles for

short-haul transportation between sorting centers and service outlets

the connection between service outlets and couriers’ collection and

By building an intelligent supply chain system and combining professional algorithms and operational data analysis the Company

Operational analysis provided accurate supply chain solutions. For instance in addressing out-of-stock scenarios the AI model identifies root causes

delivery areas and pickup and delivery within enclosed areas such

and suggests corrective actions to help customers respond to market fluctuations efficiently enhancing decision-making speed as industrial parks and campuses. This automation of short-haul

and accuracy. transportation and collection and delivery has improved efficiency and

reduced costs. By building a unified platform for unmanned vehicle

integration and simplifying loading and unloading operations the

SF Large Language Model and Multi-modal Model Company effectively reduced the operational costs for future new

scenarios and vehicle types.SF’s proprietary large language model and multi-modal model are widely applied across over 20 business scenarios including

customs clearance customer service pickup and delivery and marketing empowering employees with industry knowledge and

improving operational efficiency while delivering superior customer experiences. Unmanned Warehouses

Main Applications of SF Large Language Model And Multi-modal Model in Business Operation Scenarios

The Company has developed automated warehousing systems that

integrate robotic storage and retrieval solutions offering customized

Operational optimization Customs clearance optimization Enhancing customer experience end-to-end automation for various industries. For example for the

cosmetics industry where SKU complexity small item handling

In sorting process the AI-driven smart During the order placement process the In the parcel ordering process customers and expiration management are critical the Company’s automated

security screening system combined with large language model automatically analyzes can complete orders using a single voice warehouses feature high-density storage solutions that optimize

full-chain monitoring automatically detects customs regulations from multiple countries command. In return logistics users can space and labor efficiency. These facilities include shuttle-based

risks and ensures parcel security. In pickup ensuring precise clearance procedures. upload a product image to automatically

and delivery operations AI-powered digital During document verification the model generate a return request with the large warehousing systems for accurate pallet and item-level handling

assistants provide real-time training and Q&A automatically reviews shipment details language model extracting order details in AGVs lifting mechanisms and sorting machines ensuring seamless

support to new couriers enabling them to achieving a 97% auto-review rate at selected just nine seconds. In customer service AI- inventory control and the ability to process over 100000 daily outbound

quickly learn parcel handling standards and customs ports. In customs inspection the powered assistants extract key information orders. The system is already implemented in pharmaceuticals high-

product information. The system achieves a multi-modal AI model analyzes product from conversations and generate real-time tech home appliances and other industries.

99% accuracy rate in understanding inquiries. images and determines clearance eligibility summaries reducing customer service

achieving an 83% human-machine match rate response time by 30%.significantly improving customs clearance

efficiency.

010203

The Company will continue to explore the application of large model technology in logistics services across more industries

and scenarios driving the intelligent transformation and upgrades of the logistics and supply chain industry.128 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 129

Digital Intelligence Penetration: Full-Scenario Empowerment and Upgrade Smart Supply Chain: Creating An Industry Transformation Engine

Deep Application of RPA SF provides comprehensive digital supply chain solutions for top-tier industry clients across high-end manufacturing

cosmetics auto parts home appliances and consumer goods industries. The company has successfully developed

RPA (Robotic Process Automation) technology simulates human hundreds of industry use cases empowering over 4000 customers with smart supply chain management.operations to automate repetitive and rule-based business

processes across logistics operations significantly improving

efficiency and optimizing workflows. The Company extensively

utilized RPA robots covering various stages of collection SF ╳ Energy Industry

sorting transportation and delivery to improve operational

efficiency and optimize business processes. This technology The Company partnered with a well-known petrochemical company to provide an end-to-end data-driven supply chain

assisted employees in automatically generating daily weekly solution. The energy industry supply chain was characterized by high uncertainty and complex processes. Given the

and monthly reports reducing the burden of repetitive report customer’s relatively independent business management and absence of data communication the Company built a digital

preparation. It also helped employees monitor performance and visualized logistics management platform that integrates marketing warehousing transportation and settlement

metrics such as timeliness and delivery efficiency providing processes. This platform made the entire supply chain transparent reducing information barriers and management costs. In

data for analysis and reporting. Currently these robots are addition the energy industry often involves bulk commodity trading and customers tend to use multimodal transportation.deployed at the Company’s various scenarios such as sorting centers and service outlets. In customer-facing processes The Company intelligently identified rational delivery outlets return vehicle routes and orders with the same delivery

RPA applications expanded self-service capabilities for customers significantly improving response timeliness. In the direction while smartly dispatching resources such as vehicles and ships to reduce costs and improve transportation

delivery process the Company utilized RPA robots to automatically monitor the status of parcels at different time periods efficiency. In terms of warehousing the Company accurately analyzed inventory level and outputs logistics demand plans

and promptly remind couriers at each stage enhancing on-time delivery rates and overall customer service quality. to help the company improve its level of intelligent management.Intelligent Logistics Products

For small and medium-sized customers the Company utilized light-version SaaS products to enhance the value-added

services in various aspects of its express delivery and logistics services. The Company has successfully deployed dozens SF ╳ New Energy Vehicle Industry

of technology-powered SaaS products enabling SMEs to streamline supply chain operations reduce costs and optimize

last-mile delivery performance. The Company cooperated with a leading new energy vehicle brand to create an integrated after-sale solution for auto parts

circulation that includes transportation warehousing and distribution services based on its self-developed supply chain

system. By structured integration of express FTL LTL and store delivery transportation modes the Company improved

Confirmation Scenario Liquor Industry transportation flexibility and intelligently and dynamically distributed transportation resources based on the weight volume and flow direction of the shipments reducing transportation costs. The Company also provided various efficient

For B-end customers in the financial and insurance industries Regarding the issues of high value fragility cross- system access methods and in conjunction with the transportation execution monitoring module allowing customers to

such as accounting firms banks securities etc. and confirmation channel selling and counterfeits in the liquor industry transparently control logistics performance quality. In addition with years of experience in self-operated warehousing

document customers focusing on the sending receiving signing a traceable anti-counterfeiting logistics and control

and centralized operation processing of confirmation documents system has been built to help enterprises control the services the Company provided standard warehousing and distribution services for the customer’s own online store

the products conduct full-process management and adopt automated information of store purchase sales and storage ultimately forming a comprehensive supply chain technology solution from warehousing to distribution which currently

processing solutions combining business and technology to and reduce the loss due to cross-channel selling and serves multiple well-known automobile companies.realize the online intensive and digital processing of confirmation counterfeits. It has served more than 20 customers in

documents so as to achieve digital and intelligent the liquor industry.upgrades of business with efficiency improvement

and cost reduction risk prevention and control and

collaborative operation and management.Main Service

Scenarios of SF ╳ Consumer Goods Industry

SF’s SaaS

Pharmaceutical Industry Products Cultural and Tourism Industry The Company cooperated with a top-tier condiment brand to build an all-channel intelligent order center achieving

intelligent distribution ordering and order processing. When distributors place orders the system can automatically

The products provide standardized pharmaceutical The products can provide passengers with provide ordering suggestions improving the accuracy of dealer orders and increasing the sales of brand merchants. The

logistics service digital system for hospitals integrated baggage services covering baggage

pharmaceutical e-commerce Chinese medicine stores delivery storage check-in and packing and intelligent order center aggregates all-channel inventory information providing real-time scheduling of available inventory

etc. covering Chinese and western medicine medical prohibited and lost item management etc. in resources for each sales channel achieving all-channel “one inventory” management. At the same time it manages

records physical examination reports and other categories major transportation hubs making passengers’ the order fulfillment status of each channel realizing automatic order review allocation and shipping improving order

for delivery ensuring the timeliness of drug delivery travel more convenient and easier.and realizing the safety management of transportation processing efficiency and customer experience. Currently this solution has been replicated and promoted among multiple

environment. The products have cooperated with thousands customers in the food industry.of hospitals to promote the digital upgrade of pharmaceutical

logistics.130 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 131

Science and Technology for Good: Building a Strong Defense Line for Industry-research Collaboration: Jointly Building an Open Innovation

Science and Technology Ethics Ecosystem

The Company always upholds a responsible attitude. In pursuit of technological innovation and efficiency improvement it The Company adheres to the concept of openness and win-win cooperation closely collaborates with partners such as

puts data security privacy protection and technological ethics at the core of technological innovation management. As the scientific research institutes and universities and jointly promotes the innovative application of cutting-edge technologies

Company’s independent research and development technology level becomes increasingly sophisticated the Company such as digital twins blockchain and operations research optimization in the logistics field. It injects new impetus into the

has simultaneously strengthened its compliance management system for the development and application of large models transformation and upgrading of China’s logistics industry and jointly opens a new chapter in smart logistics.to ensure that technological development always follows the principles of science rationality and respect.Against the backdrop of the transformation of the logistics supply chain from resource-driven to technology-driven

Compliance Management System the Company as a pioneer in the industry takes the lead in carrying out school-enterprise cooperation in the field of unmanned logistics. By implementing a production-practical unmanned logistics system on campus it not only

optimized campus logistics services and enriched the scenarios of smart campus management but also provided

The Company strictly follows laws and regulations and deeply integrates compliance requirements into R&D processes. high-quality teaching resources and practical platforms for universities effectively improving students’ practical

In 2024 the Company reported zero incidents violating tech ethics or regulatory standards. abilities.At present the Company has formed mature industry-education integration solutions in many fields such as unmanned

Model training stage: Evaluation and testing Application monitoring Compliance training: logistics supply chain optimization supply chain execution smart warehousing laboratory and live e-commerce supply

process: stage: chain providing continuous impetus to industry innovation and development.Conduct strict security Use independent test Implement a keyword Conduct scientific and technological

assessment on the input data sets to verify the detection mechanism to ethics compliance training for product

data to ensure legal performance and safety ensure that the application and R&D personnel deeply analyze

compliance and eliminate capabilities of the model; follows the principles of the current compliance status

illegal or harmful content; science reasonability and of relevant industries in China Innovation Through Industry-University-Research Cooperation

respect and effectively systematically interpret relevant laws

avoid the spread of false or and regulations and emphasize

harmful information. specific requirements for product

development and safety compliance. Industrial upgrading

In 2024 SF Technology completed the construction of a special project on blockchain and fintech in the key R&D

areas of Guangdong Province in cooperation with Xidian University and the Zhuhai Innovation Research Institute

of Fudan University. The project is based on domestic open-source alliance chain and domestic basic software and

hardware combined with blockchain technology and domestic passwords to create an independent and controllable

supply chain management service platform and build blockchain underlying solutions and industrial ecology.Scientific research projects

Ethical Commitment to Science and Technology SF Technology in close cooperation with academic institutions such as Southeast University the Shenzhen Research Institute of Southeast University and the Shenzhen Institute of Artificial Intelligence and Robotics

undertook a major scientific and technological special project (in the field of robotics technology) of Shenzhen

SF is committed to strictly observing the following principles in the development and application of the technology: in 2024 with upstream and downstream enterprises in the industrial chain. This project explores the adaptability

execution efficiency and application capabilities of intelligent robots in logistics scenarios and drives the future

development and innovation evolution of intelligent logistics with technological innovation.Principle 1 Principle 2 Principle 3

Protecting Data System Security Bias Principle 4 SF Technology Postdoctoral Research Station

Privacy Assurance Mitigation Content Traceability Since its establishment in 2022 SF Technology Postdoctoral Research Station has actively absorbed and cultivated

high-tech talents and promoted the deep integration of industry academia and research. It has established a joint

Minimize data collection Regularly carry out network Strictly control the data Develop and implement training mechanism with top universities such as Zhejiang University the Shenzhen Research Institute of Tsinghua

apply de-identif ication secur i ty vu lnerab i l i ty selection algorithm design trusted content traceability

anonym iza t i on and University and Harbin Institute of Technology to accelerate the process of industry-university-research integration

encryption to safeguard detection and red-blue and model optimization and verification methods in the fields of digital twins operational research optimization and supply chain optimization. In 2024 there were

user privacy. confrontation drills identify processes identify and (such as watermarking 4 postdoctoral researchers at SF Technology Postdoctoral Research Station committed to researching key core

and repair network security eliminate bias risks through technology) to help technologies in the logistics field and continuously improving the Company’s technological capabilities and core

vulnerabilities in a timely systematic evaluation and users identify accurate competitiveness.manner and ensure the testing to fairness and t e c h n o l o g y - g e n e r a t e d

integrity and stability of transparency. content and enhance

the whole life cycle of the credibility and traceability.system.132 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 133

Empowering Enterprises Expanding Overseas Brands Going Overseas: Safeguarding the Path of Chinese

Brands Going Global with Smart Supply Chains

The Company has capitalized on the growing trend of Chinese enterprises expanding their production capacity and brands

overseas deepens business integration actively explores the supply chain and international market. It is committed to Leveraging its robust supply chain and logistics strengths SF provided end-to-end solutions for Chinese consumer

becoming the preferred logistics partner for customers to go global supporting the realization of the Company’s strategic brands expanding overseas spanning from domestic operations to international markets. In 2024 SF developed a

goal of being the only one in Asia and global coverage. customized solution from scratch for a renowned Chinese coffee brand enabling the successful launch and stable

In 2024 the Company continued to build efficient and reliable international supply chains for clients achieved breakthroughs operation of over 50 stores in Singapore. Throughout the project SF achieved a 100% emergency order fulfillment

from 0 to 1 to scale across multiple countries industries and service scenarios. It secured contracts for over 100 overseas rate delivered T+0 turnaround for customs clearance and replenishment delivery and maintained zero delivery

supply chain projects with more than 50 successfully implemented. These projects serve leading clients across diverse exceptions throughout the year. Drawing on its mature supply chain management expertise honed in China SF

sectors including e-commerce and circulation industrial manufacturing high-tech apparel and footwear home appliances helped the brand to rapidly scale its global footprint.and furniture automotive and coffee and tea beverage chains. The services span key markets such as Singapore Malaysia

Vietnam Thailand South Korea Philippines Netherlands Germany and France. SF gave full play to its own advantages replicated the domestic efficient supply chain operation mode to overseas markets and continued to help Chinese brands deepen the international market.In the coffee and tea industry

Additionally leveraging its global network capabilities and comprehensive service strengths SF has deepened multi-scenario

The Company has supported a number of emerging Chinese coffee and tea brands in their overseas expansion including assisting collaborations with leading e-commerce platforms while expanding partnerships with overseas independent websites and

a coffee brand client in the quick opening and operation of more than 50 stores in Singapore and as the exclusive supply chain merchant clients. This resulted in a 24% year-on-year increase in cross-border e-commerce clients. Notably by enhancing

partner of a tea brand client for overseas expansion supporting it to open 110 stores in eight countries. its cross-border door-to-door next-day delivery fulfillment capacity on China-Southeast Asia routes the Company now

provides efficient cross-border B2C services to emerging platforms and brand clients effectively addressing their historical

In the automotive industry pain points such as lengthy fulfillment cycles slow delivery times and high damage rates. This has empowered clients

to rapidly penetrate Southeast Asia’s consumer markets. Simultaneously to meet cross-border e-commerce demands

The Company not only provided cross-border air and sea transportation services for new energy materials batteries and high- targeting Europe and the U.S. SF has accelerated the deployment of overseas warehouses. It offers clients a one-stop

end equipment but also successfully undertook the integrated warehousing and distribution logistics services for overseas auto solution combining first-mile consolidation and integrated overseas warehousing and distribution while optimizing cost

spare parts of a leading automotive enterprise. This includes integrated supply chain services covering customs clearance of efficiency to enhance service value and strengthen customer loyalty.auto spare parts port-to warehouse transfer warehousing and local store distribution.Aligned with the Belt and Road Initiative and the “Express Delivery Globalization” strategy the Company will continue to

In the consumer goods sector advance the vision of “seamless global logistics” driving the development of an interconnected innovative inclusive smart

and green international supply chain system. Through broader higher-standard and deeper international collaboration

The Company provided efficient air and ground transportation services for the export of raw materials and components in the we aim to deliver greater achievements and serve a more expansive global market.multinational production supply chain of 3C electronic products. In the consumer goods sector beyond its existing role in managing

cross-border supply chains for 3C electronics the Company capitalized on the growing trend of Chinese cultural IP brands expanding

internationally. It served a top-tier domestic designer toy brand with comprehensive international logistics solutions including express

delivery cross-border ground transportation and overseas warehousing. The services covered both online direct-to-consumer

channels and offline retail stores facilitating the brand’s entry into the Southeast Asian market.In the engineering logistics sector

The company leveraged its extensive logistics network and integrated capabilities with KLN to successfully execute multiple overseas

infrastructure projects for Chinese enterprises. These projects spanned renewable energy sectors such as wind power photovoltaics

and energy storage showcasing the company’s leading expertise in complex cross-border logistics solutions.Production Capacity Going Overseas: Empowering the

Future of Green Travel with Smart Logistics

In the wave of new energy vehicles going overseas the Company relied on its strong supply chain and technological

capabilities to help new energy vehicle companies enter the international market.With highly mature supply chain solutions for the automotive industry the Company has built a logistics service architecture

covering the entire process of new energy auto parts transportation and vehicle shipping. Relying on the self-developed

“Feng Zhi Cloud” digital platform SF carried out refined management and control of transportation route planning

warehousing and deployment greatly improving transportation efficiency and effectively ensuring that new energy vehicles

can be delivered on time and with high quality.In response to the special needs of new energy vehicles in terms of battery transportation safety and timeliness of

after-sales service the Company has formulated a series of safety and compliance solutions. At the same time SF

worked closely with high-quality partners in the industry to build a reverse recycling network for used lithium batteries

and other parts and actively promoted the sustainable development of the new energy vehicle industry in a green and

low-carbon direction.134 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 135

Delivering Premium Services SF has integrated a multi-layered product and service matrix to form an integrated solution suite. This suite is applicable to diverse scenarios including fresh

produce beverages pharmaceuticals and even event support. Whether for B-end As of the end of 2024

merchants or C-end consumers and regardless of the distance – whether within the half-day delivery

SF always adheres to a customer-oriented approach constantly optimizes and upgrades its service product system and the same city within the province or across provinces – this comprehensive

meets the diversified needs of customers in terms of timeliness weight frequency distance scenarios and geographical service in Greater approach can press the “acceleration button” for transportation.location in an all-round and multi-angle manner. The company’s services have penetrated into various sectors including Metropolitan Areas has

industrial manufacturing commercial distribution agricultural products food and pharmaceutical cold chains international SF has established a multi-tiered fast-fulfillment service system including

trade and local life. They cover all aspects of social production and people’s livelihoods establishing a brand image that expanded to 291 “half-day delivery same-day delivery and next-day delivery” which provides

is “fast” “reliable” and “premium services”. High-quality services have shaped an unparalleled brand value. Relying on tailored and time-sensitive services for various types of commodities. This system cities nationwide.its leading service quality and reputation the company has accumulated a highly loyal and sticky customer base across optimizes logistics costs while enabling merchants to deliver goods to consumers

various sub-industries. It has become the preferred logistics partner for many customers and is widely recognized by more quickly effectively balancing logistics costs with transportation efficiency

customers the industry and society. and supporting the stable development of business and the economy.In the rankings released by the State Post Bureau SF has been ranked first in public Lakeview Peach Fresh Delivery SF Express Lane Accelerates

satisfaction with express services for 15 consecutive years (2009-2023) and the first three quarters

of 2024 as well.In late July 2024 in Yangshan Town Wuxi Jiangsu Province the “Lakeview” variety of peaches known as the

On August 5 2024 Fortune released its 2024 Fortune Global 500 list in which the Company ranked No. 415. “honeydew” of peaches was officially launched. This variety not only has a short fruiting period but is also difficult

to keep fresh and is prone to damage. As a result local farmers were eager to ship the peaches out quickly. To

This marks the third consecutive year that the Company has been included in the list and it remains the meet this demand SF invested in 6 special peach planes 54 all-cargo aircraft and 256 transportation trunk lines.first and only Chinese private express delivery enterprise to achieve this milestone. These resources not only ensure that the peaches can be delivered to core consumption areas such as Jiangsu Zhejiang and Shanghai within half a day but also enable next-morning delivery for cross-provincial or long-distance

transportation. This initiative has set a unique “acceleration” benchmark in the express delivery industry.Ultimate Time-Definite Delivery Commitment

SF has redefined the standard for time-definite delivery in China establishing the highest standard in the field with precise

delivery time commitments. The company offers high-frequency pick-up services promising that couriers will arrive at the

sender’s address within one hour after an order is placed. According to information released by the State Post Bureau SF’s

time-definite delivery service has recorded the shortest delivery time among all time-definite services in China since 2013.The company continues to refine the landscape of its time-definite service products achieving ultimate performance

in transportation timeliness whether it is within the same city across cities or across provinces. SF has developed amulti-tiered fast-delivery service capability including “hourly delivery half-day delivery same-day delivery and next-daydelivery” to enhance its service network and product system from near-field to far-field. With a multi-product portfolio

model SF helps customers build an extremely efficient “circle of friends” for express delivery.In terms of same-city delivery services the instant In terms of cross-city delivery services

service “SF Same-City Express Delivery” has “SF Same-Day” Delivery has expanded toachieved the efficient service of “1-hour express cover over 700 routes nationwide enablingdelivery across the city” in over 300 cities. The In terms of cross-city express delivery on the same

company’s “Same-City Half-Day Delivery” service same-city day. Long-distance transportation is a key

which guarantees delivery within an average of 4-6 delivery competitive advantage for SF within the

hours for both intra-city and cross-city shipments services industry. The company’s flagship product

within economic circles has expanded to 291 cities “SF Express” leverages its superior

nationwide. In 2024 SF will continue to deepen In terms of aviation capacity and transit efficiency

its time-definite service network further extending cross-city to offer next-morning delivery for long-

its “Same-City Half-Day Delivery” service to key delivery distance shipments. This service is widely

urban agglomerations such as the Yangtze River services utilized in various sectors including

Delta and the Pearl River Delta supporting the commercial documents cosmetics and

development of “Greater Metropolitan Areas”. 3C electronics.136 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 137

Enhancing Customer Experience Securing Safety Delivery

SF has always been committed to delivering high-quality service experiences to its customers. By actively listening to

customer feedback and promptly responding to their needs the company drives comprehensive operational synergy across SF strictly complies with laws and regulations including the Postal Law of the People’s Republic of China the Measures for

all links of its business. Customer satisfaction is positioned as the core objective of SF’s service quality management. the Supervision and Administration of Postal Delivery Safety the Measures for the Administration of Real-Name Collection and

Guided by customer needs SF continuously strengthens its quality management refines its service standards and Delivery of Mail and Express Mail and the Regulations on the Administration of Prohibited Delivery Items continuously enhancing

enhances its service philosophy and levels. its delivery safety management level. The company has established the “Three Systems” Management Regulations for DeliverySecurity which clearly defines the core control principles of “real-name collection and delivery inspection upon collection andCustomer Complaint Target and Achievement machine-based security checks” to comprehensively ensure the safety of express delivery. In 2024 SF further refined its internal

2024 Target Achievement in 2024 2025 Target management standards for battery collection and delivery in accordance with relevant battery delivery specifications ensuring the safe transport of high-risk items.

The dissatisfaction rate27 The dissatisfaction rate The dissatisfaction rate

Customer Service towards customer complaint customer complaint service towards customer complaint

service is lower than 5% was 4.2% service is lower than 4%

Real-Name Authentication Management

In 2024 the company focused on enhancing the service quality of its express products by launching 24-hour online

services to ensure timely responses to customer needs. By systematically collecting and analyzing customer feedback the Since China comprehensively promoted the real-name express delivery system in 2015 SF

company redesigned the complaint handling process for its express products established clear and measurable service has always actively responded to and strictly implemented regulatory policies continuously

improvement targets and significantly enhanced service quality. As of the end of 2024 customer satisfaction with the optimizing the real-name authentication process to ensure delivery security and user information In 2024 the SF

company’s express products had increased by over 30%. Additionally the company optimized its internal management security. On March 1 2024 the Measures for the Administration of the Express Delivery Market real-name online

systems and standards in customer claims handling and express routing display to effectively improve customer experience. revised and issued by the Ministry of Transport came into effect further emphasizing the registration rate was

importance of real-name collection and delivery inspection upon collection and machine-based

security checks. These measures are designed to enhance the safety and reliability of express

Customer Complaint Management 99.93% delivery services. a further increase

from 2023.SF has established a comprehensive suite of management systems including the Measures for The company fully implements the real-name collection and delivery system through process

Accepting Customer Complaints Complaint Handling Process Claims Management Measures and SF received a total integration system enforcement and performance monitoring requiring couriers to verify the

Complaint Handling Escalation Mechanism to ensure that customer issues are resolved in a timely sender’s identity when collecting parcels. In 2024 the company introduced a facial recognition

and efficient manner. Additionally the company has developed the Emergency Response Capability of 49708 system into the real-name authentication process as an auxiliary means of identity verification.System which sets grading and classification standards for customer complaint incidents enabling complaints related This significantly enhances the accuracy and efficiency of sender identity verification ensuring

effective responses to various emergencies and significantly enhancing the efficiency of customer to its products and the safety and compliance of the delivery process.complaint responses.services

The company adheres to the principle of “customer first experience first” and has established all complaints * Real-name delivery is connected with the “National Network Identity Authentication Platform” of the Ministry of Public

a unified digital after-sales service platform that integrates diverse customer service channels were handled with Security and user information is authenticated with the help of the public security authoritative platform to ensure the

ensuring uninterrupted 7×24-hour service. In line with industry characteristics and customer 100% authenticity and effectiveness of the information;needs the company has introduced differentiated claims services such as direct customer service a

compensation and negotiated claims with insurance companies to effectively enhance the after-sales resolution rate * Display the “online real name” prompt and real name link on the WeChat applet and APP order page to guide customers Process to complete the real-name authentication operation before placing an order;

service experience. Integration

* Regularly verify the real-name information of monthly customers (corporate customers) and prompt the system to

In 2024 SF received a total of 11815 valid complaints related to its products and services and all modify the erroneous data to improve the accuracy of real-name information.complaints were handled with a 100% resolution rate.Customer Satisfaction Survey * Automatically identify the customer ID card through OCR/NFC and adopt the original ID card + two-element verification

mode to ensure the validity of real-name authentication;

SF conducts quarterly customer satisfaction and Net Promoter Score (NPS) surveys using online * Add the function of scanning “I” real name and users automatically jump to the applet for real-name authentication

questionnaires and random stratified sampling. These surveys continuously monitor the NPS and after scanning QR code using WeChat;

satisfaction scores of both corporate and individual customers. In 2024 the total sample size for System SF ranked Enforcement

SF’s customer satisfaction surveys exceeded 160000 covering hundreds of cities nationwide. The * Optimize real-name prompts add real-name authentication prompts before when and after placing an order and inform

survey content includes over 40 sub-indicators across six major dimensions: NPS express delivery first in the users in advance to prepare valid certificates.timeliness express delivery safety collection and dispatch services sales services after-sales first three quarters

services and system services. of 2024

According to the State Post Bureau’s 2024 Express Delivery Service Public Satisfaction Survey SF

ranked first28 in the first three quarters of 2024. * Analyze the causes of the real-name abnormal notification data of enterprises monitored by the State Post Bureau

Performance output it in the form of daily newspapers simultaneously and urge relevant organizations to improve the problems.Monitoring

27 The dissatisfaction rate with customer compliant service is derived from satisfaction ratings with respect to the handling of customers’ complaint

issues which equals to the number of customers dissatisfied with the handling of their complaint issues / total number of customer complaints.

28 As of the disclosure date of this report the 2024 public satisfaction survey data on express delivery services has not been released.138 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 139

Management of Prohibited and Illegal Items Dangerous Goods Transportation Management

SF strictly adheres to the Regulations on the Administration of Prohibited Delivery Items and formulates as well as dynamically SF strictly complies with the relevant laws and regulations for the transportation of dangerous goods and has established a

updates the Standards for Consignment of Commonly Received and Delivered Items to ensure that the delivery safety management comprehensive dangerous goods transportation management system covering the entire process. This includes the Dangerous

system remains up-to-date. The company regularly conducts special rectification activities on delivery safety employing multiple Goods Transportation Manual and the Emergency Response Guide for In-flight Dangerous Goods Incidents which set refined safety standards for the classification identification packaging collection transportation inspection and delivery of dangerous

measures such as enhanced inspection and management in-depth employee training and optimized incentive mechanisms. These goods. The company also strengthens dynamic monitoring throughout the entire transportation process to ensure safety. SF

efforts effectively prevent prohibited items from entering the delivery channels and ensure proper disposal of any prohibited items Airline continues to break through industry qualification barriers. It possesses qualifications for the transportation of Class 1-9

that have already entered the channels. Through these initiatives SF is committed to maintaining the safety and smoothness of dangerous goods for self-use aviation materials and commercial purposes. Additionally it has become the first domestic airline to

delivery channels and creating a safe and stable delivery service environment for the public. obtain the A99 international air transport certification. These achievements highlight SF’s capabilities in international compliance

and operational standards.Inspection and Management of Prohibited Articles

Overcoming Challenges in Nuclear Power Transport Equipment

SF actively collaborates with relevant state departments to jointly combat the transportation of illegal and prohibited items. The

company implements comprehensive and rigorous security checks on each parcel to ensure the safety of express parcels. In and Setting High-End Logistics Standards

2024 SF significantly reduced the transport of prohibited items through a series of special operations and honored 412 security

personnel who proactively reported prohibited items. Currently there are more than 1000 licensed security personnel across the In 2024 SF collaborated deeply with a renowned nuclear power equipment company and successfully overcame the

network. A total of 21680 illegal and prohibited items were detected throughout the year a decrease of 44% compared to 2023. technical challenges associated with the cross-border transportation of nuclear power special equipment. Confronted with

This fully reflects the company’s remarkable achievements in enhancing the safety awareness of its employees and the public’s the significant size and stringent transportation requirements of nuclear power equipment SF leveraged the global freight hub advantages of Ezhou Huahu Airport. The company innovatively adopted pre-customs declaration and pre-examination

perception of safe delivery. as well as off-site customs declaration models to achieve the full transportation of equipment from domestic warehouses to

Frankfurt Germany in just 15 hours. This represents a more than 40% improvement in timeliness compared to the industry

average. By utilizing customized radiation-resistant outer packaging precise route planning and a full-link monitoring system

SF ensured “zero damage and zero delay” throughout the entire process from loading registration to delivery. Additionally

by integrating the airport’s capabilities in handling nine

categories of dangerous goods SF provided one-stop

services such as professional loading and installation

achieving both safety and compliance standards.Pickup and Security check Government-

delivery inspection implementation enterprise

Positive

incentives This cooperation marks the authoritative validation of collaboration SF’s technical and service capabilities in the field of

high-end dangerous goods transportation. SF not only

advances the standardization of nuclear power equipment

* The system is implanted with * Increase investment in high- * Strengthen cooperation * Formulate the Measures transportation but also leverages its dual strengths in

the Standards for Collection speed security inspection wi th publ ic secur i ty for the Administration of resource integration and technological innovation to

and Delivery of Common equipment and improve the national security and other Rewards for Self-examination provide efficient logistics support for the globalization of

Entrusted Items to warn and quality of security inspection. departments accurately of Illegal Contraband to “Made in China”.intercept illegal items during track and intercept express encourage safety inspectors Qingdao SF Launches Regular Sea Transportation of

customer orders and brother * The self-developed smart mail of suspicious persons to proactively discover and Nuclear Power Special Equipment

collection; security inspection platform in the receiving sending report suspected prohibited

realizes the integration and transit l inks and items.* Implement compulsory of sorting and security actively communicate and

photo inspection of high-risk inspec t ion au tomates cooperate with the handling

express mail and upload it to package processing and of suspicious items.the system to strengthen the supports remote multi-site Collaborate with Industry Academia and Research Forces to

safety control of receiving and s imul taneous research Create New Standards for Battery Transportation

sending. and judgment of suspected

contraband. In 2024 SF was invited to join the Power Battery International Logistics Supply Chain Community. in collaboration with the China

Association of Communication Enterprise Management (CACEM) Chongqing Jiaotong University and the Shanghai Research

Institute of Chemical Industry SF has established a technological collaborative innovation platform and a global logistics network.These initiatives aim to enhance the improvement of transportation standards drive technological innovation and foster the

Training on Identification of Prohibited Articles training of professional talent. The collaboration covers the entire supply chain including the import of ore raw materials

battery production logistics recycling of used batteries and

To continuously enhance employees’ ability to identify illegal and prohibited items SF regularly conducts specialized training cross-border transportation by air sea and land.activities for grassroots employees. In 2024 the company comprehensively strengthened employees’ safety awareness and By integrating automotive industry supply chain resources

skills by combining online platforms with offline training as well as through self-training morning meetings and other forms. This and hazardous materials transportation capabilities SF

approach ensures that every employee can proficiently master the professional ability to identify and dispose of prohibited items has developed an integrated solution spanning from

thereby providing a solid guarantee for delivery safety. lithium battery raw materials to end products providing

safe and efficient logistics support for the new energy

industry. At the 2024 World Power Battery Conference

held in September SF deeply engaged in discussions

on industry standards leveraging its practical experience

to empower the green and safe development of power

In 2024 the coverage rate of safety delivery training for the couriers is 100% and the qualification rate of the battery transportation. This further solidifies SF’s position as a benchmark in the field of dangerous goods

transportation. SF was invited to join the International Logistics Supply Chain

trainings was 99.9%. Community of power batteries140 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 141

Driving Industry Synergy and Shared Progress

SF Becomes a Founding Member of the Global Sustainable

Transportation Innovation Alliance

SF always embraces the development philosophy of openness and sharing and actively engages in the transformation of the

global logistics system and industrial upgrading through multi-dimensional practices including technological innovation standard

co-construction and ecological synergy. On the international stage SF leverages intelligent solutions to enhance cross-border In April 2024 SF as a founding member of the Global Sustainable Transportation Innovation Alliance represented

logistics efficiency thereby supporting the globalization of Chinese enterprises. Domestically we focus on core issues of sustainable the express logistics industry at the first general meeting of the Global Sustainable Transportation Innovation

development and collaborate with industry partners to explore pathways for green transformation. By establishing collaborative Alliance.platforms for industry academia and research advocating consensus on responsibility and exporting innovative models SF is

leading the industry’s high-quality development as a pioneer and continuously empowering the construction of a more resilient and

sustainable global logistics ecosystem. The alliance is composed of 41 leading enterprises and institutions in 12 countries around the world covering the fields of roads water transport railways civil aviation postal services finance and technology and is committed

to building an international sustainable transportation innovation cooperation platform. The addition of SF not

only demonstrates its responsibility in promoting the sustainable development of global transportation but also

Connecting the World Wisely and Deepening Cross-Border Synergy provides a practical model for the green transformation of the express logistics industry. By participating in alliance

cooperation SF will join hands with global partners to jointly explore low-carbon transportation solutions promote

SF actively responds to the Belt and Road Initiative deeply participates in the “Express Delivery to the Sea” project and industry resource optimization and technological innovation and contribute to building a greener more efficient

is committed to building an efficient and interconnected international delivery logistics system. By integrating domestic and and sustainable global transportation ecology.international end-to-end supply chain service capabilities the company provides all-round support for the global layout of

Chinese-funded enterprises and helps customers achieve efficient cross-border business operations. In order to further promote

the development of international business and better serve the country’s Belt and Road construction SF officially joined the

Universal Postal Union Advisory Committee (UPUCC) in early 2024 becoming an important participant in policy formulation and

rule discussion in the global postal field.As an authoritative body in the postal sector the UPUCC brings together global postal experts industry leaders and business Gather Local Efforts to Drive Green Changes

representatives and is dedicated to providing professional advice on postal services technology regulations and international

cooperation. In recent years the UPU has gradually opened up to a broader range of industry participants creating significant In the logistics industry efficiency and speed have always been

opportunities for private courier companies to integrate into the global network and deepen international cooperation. SF’s

membership not only signifies the recognition of its influence in the international postal arena but also offers a new platform for the core elements of competition. Driven by the global wave of

Chinese courier companies to engage in the formulation of global rules and drive high-quality industry development. sustainable development ESG management is emerging as a key

force in reshaping the industry landscape. In August 2024 at the

13th Transportation Union Summit the China Logistics ESG Synergy

Since joining SF has actively engaged in various meetings and Alliance was officially established. The Alliance aims to promoteagendas of the UPUCC particularly the “Postal Prosperity Zone (PPZ)Pilot Project.” This project aims to foster in-depth cooperation between the development of ESG practices in the logistics industry optimize

private courier companies and UPU-designated operators driving the allocation and complementarity of resources and enhance the

the coordinated development of global cross-border e-commerce international competitiveness of Chinese logistics companies.logistics. Through its participation SF has fully leveraged the UPU’s

extensive global network resources to achieve resource sharing and As one of the co-founders of the Alliance SF collaborates with

complementary strengths thereby accelerating the implementation of upstream and downstream enterprises across the logistics industry

its international strategy. This not only enhances SF’s competitiveness chain to jointly explore and establish ESG disclosure standards and

within the global logistics ecosystem but also sets a benchmark for practice pathways that align with the unique characteristics of China’s

Chinese courier companies to participate in international rule-making

SF representatives attend the UPUCC logistics sector. By integrating industry resources and innovative and promote high-quality industry development. The establishment ceremony of the China Logistics

Autumn General Assembly experiences SF is committed to setting ESG practice benchmarks Industry ESG Collaborative Development Alliance

and driving the logistics industry towards greener healthier and more

sustainable development.SF Smart Security Platform Unveiled at UPU World Leaders Forum

The China Logistics ESG Synergy Alliance Initiative:

From 22 to 24 October 2024 the UPU World Leaders Forum was held in Amsterdam the Netherlands. At the

forum SF delivered a speech titled “Smart Security Inspection Platform for Postal Express” sharing with the global

postal industry how the platform leverages intelligent technology to complete the security inspection of parcels at * Logistics practitioners should adhere to professional ethics and strictly comply with operating standards and laws and

high speed with high accuracy and efficiency. This has driven a dual improvement in the efficiency and safety of regulations.express security inspection.The SF Smart Security Inspection Platform has been deployed in over * Strengthen industry self-discipline jointly maintain market order and jointly build a transparent and efficient logistics

100 transit hubs within the company and is equipped with more than ecosystem.

1000 high-speed X-ray scanners. Compared with traditional security

inspection machines the platform achieves an efficiency improvement * Actively promote the concept of green logistics to reduce environmental pollution and achieve sustainable development.of more than 8 times. It has obtained 16 invention patents won multiple

awards in relevant technological innovation competitions in China and * Let us join hands to eliminate negative impacts through practical actions and establish a positive image for the logistics

has been successfully applied to other companies in the industry. industry.Faced with the trend of improving global express security standards SFadvocated cross-border collaboration in the forum calling on the industry SF speech theme “Postal Express Smartto share data resources and algorithm capabilities jointly overcome Security Inspection Platform”

technical bottlenecks such as rare contraband identification and help Driven by both international collaboration and local practice SF is leveraging technological innovation as the link and

build an efficient and credible global delivery network. responsibility consensus as the cornerstone to continuously unlock the value of industry synergy and inject robust

momentum into the sustainable development of the global logistics ecosystem.142 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 143

Appendices

About the Report Reporting Principles

This Report responds to and follows the reporting principles of the Environmental Social and Governance Reporting Guide

This is the sixth annual sustainability report issued by S.F. Holding Co. Ltd.. Adhering to the principles of balance including materiality quantitative consistency and balance. The following table describes the Company’s application of

comparability accuracy timeliness clarity and reliability this report discloses the management measures and effectiveness the reporting principles:

of S.F. Holding Co. Ltd. in terms of sustainable development. Principles Responses of the Company

Report Title In 2024 SF conducted its first double materiality analysis to assess the Company's ESG materiality issues and submitted the results to the Strategy Committee of the Board of Directors for review and approval. We

Materiality have used the 2024 materiality ranking results as the foundation for the preparation of this report. In terms of

For the convenience of expression and reading “SF” “the Company” “we” and “the Group” in this Report all refer to “S.F. climate-related disclosures SF has conducted a detailed analysis of the financial impacts of climate change risks and opportunities on the Company in the current short-term medium-term and long-term periods duringHolding Co. Ltd.”. the reporting period.Time Range This report discloses SF's key quantitative performance indicators and sets ESG targets where applicable. Quantitative The calculation criteria methods assumptions and/or calculation tools for all quantitative metrics have been

explained in the appropriate sections.This report covers the period from 1 January 2024 to 31 December 2024.Unless otherwise specified the selection preparation and reporting of information in this report are consistent

Consistency with those of previous years. If there are any significant changes that may impact comparability with prior years'

Reporting Scope reports we will provide explanations in the relevant sections.Balance This report is based on objective information and facts and fairly discloses positive and negative information The reporting scope of general disclosure management of substantive issues and social key performance indicators about the company to prevent descriptions or reporting formats that may affect readers’ decisions or judgments.in this report aligns with the scope of the consolidated financial statements in SF Holding's annual financial report. To

more comprehensively and accurately reflect the Company's environmental key performance indicators the Company

will continuously refine the data statistical calibers and methodologies for each environmental performance indicator to Meanwhile the Report responds to and follows the reporting principles of the GRI standard. The following table is the

ensure data reliability. If there are additional explanations regarding the coverage of certain information in this report Company’s explanation of the application of the reporting principles:

such explanations shall prevail.Principles Responses of the Company

Reference and Principles This report aims to disclose accurate and detailed information to fully assess the relevant impacts of the Company's sustainability. Qualitative information is primarily sourced from corporate announcements the

official website the official WeChat public account and internal materials. Quantitative data is mainly obtained

The content of this report has been determined in accordance with a systematic process. This process includes research through the internal data collection system with key financial data (such as operating revenue) derived from Accuracy

and interviews identification of significant stakeholders identification of material ESG issues understanding the views the Company's annual report. The basis for data measurement and calculation as well as the fundamental assumptions and methods used to estimate the data are explained in the relevant sections of the report.of various stakeholders determining the materiality of issues deciding the scope of ESG reporting collecting relevant

information and data verifying the information and data preparing the report based on the collected information and data This report has undergone several rounds of rigorous review by the Company to ensure the accuracy of the disclosed information.and review and approval of the report by the Board of Directors.In the process of compiling this report the reading needs of different reader groups have been fully considered.The references for the preparation of this report include: It is written in accessible language and detailed explanations of English abbreviations and technical terms

Clarity are provided in relevant sections of the report. The report is published in three language versions – Simplified

HKEx Appendix C2 Environmental Social and Governance Reporting Code Chinese Traditional Chinese and English – to cater to the language preferences of diverse readers. Additionally

a detailed table of contents and an index of appendices are included to facilitate readers in quickly locating and

Shenzhen Stock Exchange's Self-Regulatory Guidance No. 17 for Listed Companies —— Sustainability Report (Trial) accessing the information they need.and Self-Regulatory Guide No. 3 for Listed Companies —— Preparation of Sustainability Reports This report is based on the results of the 2024 SF Materiality Assessment and provides a comprehensive

Completeness disclosure of the Company's management measures practices events and their impacts in each materiality Global Sustainability Standards Board (GSSB) GRI Standards area. Additionally the reasons for which certain compliance disclosure requirements are deemed inapplicable

or have been simplified are detailed in the index of appendices.Task Force on Climate-related Financial Disclosures (TCFD) recommendations

This report discloses relevant information of the Company in the context of broad sustainable development

International Sustainability Standards Board (ISSB) IFRS S2 Climate-related Disclosures Sustainability with full reference to the United Nations Sustainable Development Goals (SDGs) the climate action goals of

Context the Paris Agreement relevant authoritative intergovernmental documents and the sustainability-related policies

Sustainability Accounting Standards Board (SASB) SASB Standards of the locations where it operates.United Nations Sustainable Development Goals (SDGs) This annual sustainability report is published concurrently with the Company's annual financial report aiming to

Timeliness provide readers with timely information for decision-making purposes. The information disclosed in this report

Key indicators of corporate environmental social and governance performance by capital market rating agencies. covers the period from 1 January 2024 to 31 December 2024. To ensure the completeness of the information

the time frame for some information has been appropriately extended both forward and backward.The Company has developed a digital information platform that enables the collection and calculation of data

Verifiability related to energy consumption and greenhouse gas emissions. This platform has been subject to review by external professional organizations. The data and information compiled recorded aggregated and analyzed in

this report are sourced from verified primary data and do not include any unverified content.144 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 145

Information Explanation Assurance Statement

In March 2025 SF Holding successfully underwent the verification conducted by SGS a renowned international independent

third-party inspection and verification organization. The Company completed the third-party certification of its greenhouse

gas emissions for the year 2024 and obtained the Verification Statement on Greenhouse Gas Emissions.For the monetary amounts stated in the Report unless otherwise stated the currency in the Report is denominated in RMB.This Report is published in both Chinese and English. If there is any discrepancy between the Chinese version and the

English version the Chinese version shall prevail.Release of this Report

This report confirmed by management was approved by the Board of Directors on 28 March 2025 and released

concurrently with the annual financial report.Accessibility of this Report

You can obtain the electronic version of this Report from the following website: SF’s official website

https://www.sf-express.com.For further consultation or to offer any opinion or suggestion about this Report please contact the Company via

sfir@sf-express.com.146 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 147

Policy List

Chapter Chapter name Compliance with the main laws and regulations SF’s Main Internal Regulations

Articles of Association of SF Holdings Co. Ltd.Rules of Procedure of the Board of Directors

Rules of Procedure of the Supervisory Board

Company Law of the People’s Republic of China Rules of Procedure of the Shareholders’ Meeting

Securities Law of the People’s Republic of China Independent Directors’ Working System

Shenzhen Stock Exchange Stock Listing Rules Board Risk Management Committee Rules of

Standardize Securities Listing Rules of The Stock Exchange of Procedure

Corporate Hong Kong Limited Board Audit Committee Rules of Procedure

Governance Guidelines for the Management of Investor Relations Board Nomination Committee Rules of Procedure

Work of Listed Companies Board Compensation and Assessment

Corporate Governance Guidelines for Listed Committee Rules of Procedure

Companies Board Strategy Committee Rules of Procedure

Investor Relations Management System

Company’s Management System for Information

Disclosure

Corporate Governance Guidelines for Listed

Strengthen Companies Rules for the Operation of the Risk Committee

Risk Control Securities Listing Rules of The Stock Exchange of Group Risk Control and Compliance

Management Hong Kong Limited Management System

Basic Norms for Internal Control in Enterprises Group Risk Event Management System

Anti-Unfair Competition Law of the People’s Republic

of China SF Express Anti-Monopoly and Competition Law

Governance Interim Provisions on Anti-Unfair Competition on Compliance Management System

the Internet Integrity Handbook

Anti-Monopoly Law of the People’s Republic of China Employee Handbook

Anti-Money Laundering Law of the People’s Republic SF Anti-Corruption Compliance Management

of China System

Abiding by Trademark Law of the People’s Republic of China Reporting Management Measures

Business Ethics Copyright Law of the People’s Republic of China Code of Business Conduct

Audit Law of the People’s Republic of China Code of Conduct for Suppliers

Patent Law of the People’s Republic of China Anti-Corruption Statement

Interim Provisions on Prohibiting Commercial Bribery Conflict of Interest Statement

Accounting Standards for Enterprises – Application SF Intellectual Property Management System

Guidelines SF Software Compliance Management Measures

Regulations of the Audit Office on Internal Auditing

Work

Management Standard for Compliance

Inspection of Personal Information Protection

Data Lifecycle Security Management Regulations

Ensuring Personal Information Protection Law of the People’s Information Security High-Risk Behavior

Information Republic of China Management Measures

Security Data Security Law of the People’s Republic of China Information Security Incident Management Cybersecurity Law of the People’s Republic of China Regulations

Privacy Data Security Compliance Management

Standards

Employee Information Security Handbook148 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 149

Chapter Chapter name Compliance with the main laws and regulations SF’s Main Internal Regulations Chapter Chapter name Compliance with the main laws and regulations SF’s Main Internal Regulations

SF Airline Energy Management System Statement on Employee Rights Protection

(Provisional) Contractor regulations

Administrative Measures for Updating and Administrative Measures for Relatives and

Disposing of Bidding Avoidance

Operational Vehicles Talent Management System

Regulations on the Administration of Operational Talent Promotion Management System

Vehicles Labor Law of the People’s Republic of China Sf sends you to University Project Management

Put into Use Labor Contract Law of the People’s Republic of ChinaConstruction of Regulations for the Implementation of the Individual Methods

Creating Green Method and criteria for green packaging assessment Lump-sum Fuel Consumption Plan for Retirement and reemployment management

Logistics Requirements of restricting excessive packaging in Commercial Vehicles

Talent Team Income Tax Law of the People’s Republic of China

express delivery Regulations on the Administration of Water and Employment Promotion Law of the People’s Republic

methods

of China Management measures for the transfer of first- Electricity in the Industrial Parks and

Management Guide for Maintenance of Industrial second-line employees

Park First- and second-line employees diversified

Facilities and Equipment development of key positions within the

Industrial Park Property Service Standards employment issued standard requirements

SF Packaging Code of Practice SF Recruitment Management System

Requirements for Restricting Excessive

Packaging in Express Delivery Employee Welfare Management System

Social Employee Care Operation Guide Manual

Promoting Circular Economy Promotion Law of the People’s Employee Voice Transformation into Productivity

Circular Economy Republic of China No relevant internal management policies Work Guide

the Employee Handbook

Employee Grievance Information Disclosure

Air Pollution Prevention and Control Law of the Law of the People’s Republic of China on the

People’s Republic of China Protection of Rights and Interests of Women

Guide

Law of the People’s Republic of China on the Social Insurance Law of the People’s Republic of

Flexible Working System

China Attendance Management Regulations Prevention and Control of Environmental Pollution Protecting Employee Grievance Management Full Process

by Solid Waste Employees’ Regulations on Work-related Injury Insurance

Law of the People’s Republic of China on the Rights and Provisions on the Prohibition of the Use of Child

Trade Union Participation in Extreme Events

Work Guide

Prevention and Control of Ambient Noise Pollution Interests Labor

Energy Conservation Law of the People’s Republic Special Provisions on the Labor Protection of Female

Trade Union Channel Employee Grievance

Environment Employees Handling Work Guideof China Regulations on Paid Annual Leave for Employees Trade Union Channel Common Grievance Water Law of the People’s Republic of China Promotion Guide

Water Pollution Control Act of People’s Republic of Trade Union Law of the People’s Republic of China Trade Union Participation in Individual Dismissal

China Types Reporting Materials Standard

Soil Pollution Prevention and Control Law of the Measures for Office Space Management Reasonable Suggestions Management People’s Republic of China Energy Metering Management System MechanismPractice Green Integrated Emission Standard of Air Pollutants Dangerous Goods Management Procedure Regulations on the Administration of Rewards Operation Emission Standards for Odor Pollutants Measures for the Administration of Water and and PunishmentsEmission Standard for Industrial Enterprises Noise

at Boundary Electricity of Property Sites

Standard for Noise Limits at the Boundary of

Construction Plants

Self-monitoring technology guidelines for pollution

sources – General rule

Regulation on the Administration of Permitting of

Pollutant Discharges

Comprehensive Wastewater Discharge Standard

Standard for pollution control on the non-hazardousindustrial solid waste storage and landfill” (GB 18599-

2001)

Guidelines for the Investigation of Soil Pollution

Hazards in Key Regulatory Units (Trial)

Forestry Law of the People’s Republic of China

Safeguarding Regulations for the Implementation of Forestry Law

Ecological of the People’s Republic of China No relevant internal management policies

Environments Regulations of the People’s Republic of China on

Wild Plants Protection

Addressing

Climate Change No relevant laws and regulations No relevant internal management policies150 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 151

Chapter Chapter name Compliance with the main laws and regulations SF’s Main Internal Regulations Chapter Chapter name Compliance with the main laws and regulations SF’s Main Internal Regulations

Safety Production Management Manual Pioneering

Safety Production Responsibility System Intelligent Logistics No relevant laws and regulations No relevant internal management system

Regulations on Acquisition Identification and Innovation

Compliance Evaluation of Safety Laws and

Regulations

Regulations on Safety Assessment and Incentive Empowering

Management Enterprises

Regulations on Safety Visual Management Expanding

No relevant laws and regulations No relevant internal management system

Regulations on Extraction and Use of Safety Overseas

Production Expenses

Regulations on Management of Safety Reasonable Suggestion Management

Production Organizational Structure Mechanism

Regulations on Safety Management of Transit Reward and Punishment Rules for Customer

Depots Operations Service

Measures for Safety Management of Forklifts in Differentiated Customer ServicesWork Safety Law of the People’s Republic of China Customer Voice Classification Standard

Special Equipment Safety Law of the People’s Transit Depots

Republic of China Regulations on Safety Management for

Customer Experience Customer Service

Fire Protection Law of the People’s Republic of China Installation and Construction of Sorting and

Operation Process

Delivering

the Law of People’s Republic of China on Prevention Conveying Equipment Premium Law of the People’s Republic of China on the

Measures on the Acceptance of Customer

and Control of Occupational Diseases Regulations on Closed Management of Transit

Complaints

Services Protection of Consumer Rights and Interests Administrative Measures for Claims Settlement

Stand Firm on Guidelines for Occupational Health and Safety Depots

the Frontline of Management Systems Regulations on Management of Safety

Abnormality Handling Mechanism for Time-

Safety Byelaw Governing Reporting Investigation and Supervisors

Effective Category

Complaint Handling Procedure

Stable and Safe Handling of Production Safety Accidents Regulations on Management of Safety Complaint Handling Upgrade Mechanism

Production Regulations on emergency response to production Production Directors

safety accidents Regulations on Safety Education and Training

Guidelines for the Control of Internet Public

Opinions and Complaints

Regulations on the administration of safe production ManagementRegulations on Hazard Source Identification Abnormal Event Customer Service Processof construction projects Emergency Response Capacity System

Guidelines for the Construction of Safety Production Risk

Management Systems in Postal and Express Delivery Assessment and Control Management

Enterprises Regulations on Hazard Identification and

Services Common Standards for Receiving Consignments

Treatment Management Regulations on Operation and Management of

Regulations on Safety Management of Battery-Contained Parcels

Hazardous Operations Guidelines for Emergency Handling of Dangerous

Procedures for Safe Operation of Post Goods on BoardProperty Safety Management Regulations Provisions on the Management of “ThreeRegulations on Safety Management of Postal Law of the People’s Republic of ChinaMeasures for the Administration of the Real-Name Systems” for Delivery SafetyContractors

Regulations on Reporting and Investigation of Receipt and Delivery of Mails and Express Mails

Provisions on the Administration of Prohibited

Safety Accidents Supervision and Administration of Security of the

Consignments

Operation Procedures for Real-Name Pickup

Regulations on Emergency Response Securing Safety Postal Industry

Management Delivery Measures for the Supervision and Administration of

and Delivery

Regulations on Reward Management for Self- the Delivery Safety of the Postal Industry

Pickup and Delivery Inspection System

Dangerous Goods Transportation Manual

Inspection of Illegal Prohibited Items Provisions on Articles Prohibited from Delivery Special Plan for the Control of Illegal and

Regulations on Safety Management of Vehicles Operation Specification in Safety Production of Prohibited Articlesand Parcel Dispatch within the Depots Express Service Regulations on the Management of “ThreeSystems” for Mails and Shipments

Procurement Requirements Management Reward Management Measures for Self-

Regulations Inspection of Illegal and Prohibited Articles

Regulation of Procurement Sourcing Reward Mechanism for Self-Inspection of Illegal

E-Commerce Law of the People’s Republic of China Management Regulations on Procurement Risk and Prohibited Articles

Contract Law of the People’s Republic of China Regulations on the Management of Purchasing

Building a The Bidding Law of the People’s Republic of China Staff Anti-monopoly Law of the People’s Republic of China

Responsibility Regulation on the Implementation of the Bidding Law Procurement Enforcement Regulations Civil Code of the People’s Republic of China

Value Chain of the People’s Republic of China Procurement Contract Management Regulations (Contract Part) SF Group Association Membership Management

Measures for the Administration of Non - bidding Procurement Quality Management Regulations Driving Industry Regulation on the Administration of the Registration Measures

Methods of Government Procurement Management Regulations on Procurement Synergy and Shared Progress of Social Organizations

Management Measures for Participating in

Suppliers the State Council about Accelerating and Promoting External Standard Development and Revision

Code of Conduct for Suppliers the Reform and Development of Trade Associations Projects

Letter of Notification of Transparent Procurement and Chambers of Commerce

Sustaining Articles of Association of SF Foundation

Commitments to Charity Law of the People’s Republic of China Volunteer Association Management Regulations

Social Wellbeing of SF Foundation152 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 153

Key Performance Indicators

Table of Environmental Key Performance

202220232024

Indicator – Environment Unit

SF (Excluding KLN) KLN Total SF (Excluding KLN) KLN Total SF (Excluding KLN) KLN Total

GHG emissions29

Total GHG emissions tCO2e 9185355.1 2472955.0 11658310.1 9659416.6 2444634.0 12104050.6 9463418.5 2987414.0 12450832.5

Scope 1 tCO2e 3143752.0 322253.0 3466005.0 2652365.1 215018.0 2874104.1 3045612.0 116401.0 3162013.0

Scope 2 tCO2e 1804248.5 80543.0 1884791.5 1465521.8 79916.0 1545437.8 1328969.1 78409.0 1407378.1

Scope 330 tCO2e 4237354.6 2070159.0 6307513.6 5541529.7 2149700.0 7691229.7 5088837.3 2792604.0 7881441.3

——Category 1: Purchased goods and services tCO2e 2522391.5 N/A 2522391.5 775202.1 N/A 775202.1 841927.1 N/A 841927.1

——Category 2: Capital goods tCO2e N/A N/A N/A 783987.2 N/A 783987.2 207867.9 N/A 207867.9

——Category 3: Fuel and energy-related activities tCO2e 1689195.7 N/A 1689195.7 1754182.2 N/A 1754182.2 1390234.7 N/A 1390234.7

G H G

emissions ——Category 4: Upstream transportation and distribution tCO2e N/A 2070159.0 2070159.0 2073065.9 2149700.0 4222765.9 2512644.8 2792604.0 5305248.8

——Category 5: Waste generated in operation tCO2e 1492.1 N/A 1492.1 3303.1 N/A 3303.1 1053.5 N/A 1053.5

——Category 6: Business trip tCO2e N/A N/A N/A 20721.2 N/A 20721.2 41120.5 N/A 41120.5

——Category 7: Employee commuting tCO2e 24275.3 N/A 24275.3 25070.6 N/A 25070.6 25339.4 N/A 25339.4

——Category 8: Upstream leased assets tCO2e N/A N/A N/A N/A N/A N/A 16899.5 N/A 16899.5

——Category 12: End-of-life treatment of sold

products tCO2e N/A N/A N/A 10217.8 N/A 10217.8 3560.9 N/A 3560.9

——Category 15: Investment tCO2e N/A N/A N/A 95779.7 N/A 95779.7 48189.0 N/A 48189.0154 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 155

202220232024

Indicator – Environment Unit

SF (Excluding KLN) KLN Total SF (Excluding KLN) KLN Total SF (Excluding KLN) KLN Total

GHG emission intensity tCO2e/million revenue (RMB) 47.6 33.1 43.5 45.4 53.4 46.8 41.2 54.7 43.8

GHG emissions per parcel31 g CO2e/parcel 824.5 N/A 824.5 807.0 N/A 807.0 709.9 N/A 709.9

GHG GHG removal from newly planted trees tCO2e N/A 6.0 6.0 4.6 9.0 13.55 5.6 8.0 13.6

emissions

removal Purchased carbon credits tCO2e N/A N/A N/A N/A N/A N/A 44.0 N/A 44.0

Emission

Nitrogen oxide emissions ton 25555.5 2416.0 27971.5 27246.4 1907.0 29153.4 25045.2 528.0 25573.2

Sulfur oxide emission ton 20.6 6.0 26.6 18.2 3.0 21.2 17.4 0.8 18.2

Particle emissions ton 2087.3 156.0 2243.3 2021.2 118.0 2139.2 2011.1 35.0 2046.1

Energy consumption32

MWh 18546599.7 1673098.0 20219697.7 17506785.1 1005665.0 18512450.1 18320256.3 544719.0 18864975.3

Total non-renewable energy consumption

tce 2278114.1 205509.8 2483623.9 2150391.7 123527.7 2273919.4 2250311.9 66908.9 2317220.8

MWh 1100111.1 15339.0 1115450.1 1394864.5 13424.0 1408288.5 1870846.6 12205.0 1883051.6

Gasoline consumption

Non- tce 135128.7 1884.1 137012.9 171333.9 1648.9 172982.8 229799.6 1499.2 231298.8

renewable

energy33 MWh 12590526.5 1035410.0 13625936.5 10681630.0 780440.0 11462070.0 9731667.6 350675.0 10082342.6

Diesel consumption

tce 1546518.3 127181.4 1673699.7 1312044.9 95862.9 1407907.9 1195359.2 43074.1 1238433.3

MWh 4855962.1 N/A 4855962.1 5430290.5 N/A 5430290.5 6717577.2 N/A 6717577.2

Aviation kerosene consumption

tce 596467.1 N/A 596467.1 667012.9 N/A 667012.9 825132.8 N/A 825132.8156 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 157

202220232024

Indicator – Environment Unit

SF (Excluding KLN) KLN Total SF (Excluding KLN) KLN Total SF (Excluding KLN) KLN Total

MWh N/A 1410.0 1410.0 N/A 909.0 909.0 165.0 1399.0 1564.0

Natural gas consumption

tce N/A 173.2 173.2 N/A 111.7 111.7 20.3 171.8 192.1

MWh N/A 2808.0 2808.0 N/A 2112.0 2112.0 N/A 1870.0 1870.0

Liquefied petroleum gas consumption

tce N/A 344.9 344.9 N/A 259.4 259.4 N/A 229.7 229.7

MWh N/A 614100.0 614100.0 N/A 204405.0 204405.0 N/A 174356.0 174356.0

Compressed natural gas consumption

tce N/A 75431.1 75431.1 N/A 25107.5 25107.5 N/A 21416.5 21416.5

MWh N/A 4031.0 4031.0 N/A 4375.0 4375.0 N/A 4214.0 4214.0

Gas and oil consumption

tce N/A 495.1 495.1 N/A 537.4 537.4 N/A 517.6 517.6

Total non-renewable energy consumption MWh 7271.2 901.0 8172.2 15712.0 1402.0 17114.0 44073.7 3837.0 47910.7

Renewab le

energy Solar energy consumption MWh 7271.2 768.0 8039.2 15712.0 1378.0 17090.0 44073.7 3581.0 47654.7

Hydropower consumption29 MWh N/A 133.0 133.0 N/A 24.0 24.0 N/A 256.0 256.0

Indirect MWh 1840522.7 164389.0 2004911.7 2100998.5 167799.0 2268797.5 2081160.5 145144.0 2226304.5

energy Electricity consumption

consumption tce 226074.9 20192.2 246267.1 258069.6 20611.1 278680.7 255632.9 17828.3 273461.2

Total energy sold MWh 74.8 657.0 731.8 57.2 479.0 536.2 1330.3 836.0 2166.3

MWh 20394318.8 1837731.0 22232049.8 19623438.4 1174387.0 20797825.4 20444160.2 692864.0 21137024.2

Total energy consumption

tce 2505073.0 225732.0 2730805.0 2410384.3 144252.2 2554636.4 2511195.1 85105.8 2596300.9

MWh/million

revenue (RMB) 105.8 24.6 83.1 92.3 25.6 80.5 89.0 12.7 74.3

Energy consumption intensity

tce/million

revenue (RMB) 13.0 3.0 10.2 11.3 3.2 9.9 10.9 1.6 9.1

Use of water resources

Water withdraw ton 1423452.0 1169181.0 2592633.0 1601051.4 1042625.0 2643676.4 2148565.7 747469.0 2896034.7

29 Due to differences in business models this indicator is not applicable to SF (excluding KLN) and is therefore shown as N/A.158 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 159

202220232024

Indicator – Environment Unit

SF (Excluding KLN) KLN Total SF (Excluding KLN) KLN Total SF (Excluding KLN) KLN Total

Water withdraw intensity ton/million revenue (RMB) 7.4 15.7 9.7 7.5 22.8 10.23 9.3 13.7 10.18

Waste

Non-hazardous waste ton 46096.3 28442.0 74538.3 155214.6 20113.0 175327.6 71680.3 6345.0 78025.3

Non-hazardous waste intensity ton/million revenue (RMB) 0.2 0.4 0.3 0.7 0.4 0.7 0.3 0.1 0.3

Hazardous waste ton N/A30 142.0 142.0 N/A30 54.0 54.0 N/A30 95.0 95.0

Hazardous waste intensity ton/million 30 30 30revenue (RMB) N/A 0.0019 0.00053 N/A 0.0012 0.00021 N/A 0.002 0.0

Amount of recycled waste ton N/A N/A N/A N/A N/A N/A 12652.4 0 12652.4

Packaging materials

Total use of packaging materials kg 445093236.0 477113830.4 5672000.0 482785830.4 509788812.8 3822000.0 513610812.8

Express envelope kg 75219380.0 73959992.9 N/A 73959992.9 62496828.6 N/A 62496828.6

Waybill kg 17620130.4 14257402.5 N/A 14257402.5 17011032.2 N/A 17011032.2

Use of Carton kg 241291360.0 266797554.7 4539000.0 271336554.7 289325961.8 2748000.0 292073961.8

packaging 9203000.0 454296236.0

materials31 Plastic bags kg 41596926.6 51729610.9 1100000.0 52829610.9 63431526.2 1035000.0 64466526.2

Scotch tapes kg 28412018.0 26013021.8 N/A 26013021.8 28721914.5 N/A 28721914.5

Foaming types of fillers kg 12814718.2 12884490.8 33000.0 12917490.8 17388517.5 39000.0 17427517.5

Inflatable type of fillers kg 28138702.8 31471756.8 N/A 31471756.8 31413031.9 N/A 31413031.9

Environmental compliance

The amount of penalties for significant administrative violations or

criminal liabilities imposed by environmental protection and other

relevant departments due to environmental incidents during the RMB10000 0 0 0 0 0 0 0 0 0

reporting period

30 SF (excluding KLN) does not generate hazardous waste in its own operations and is therefore shown as N/A.

31 Due to differences in business models some indicators in the usage of packaging materials are not applicable and are therefore shown as N/A.160 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 161

Table of Social Key Performance Indicator -Society Unit 2022 2023 2024

Indicator -Society Unit 2022 2023 2024 Male % 18.6 15.9 15.6By gender33

Number of workforce Female % 22.2 18.7 19.4

Total workforce Person 743377 746577 739542 Aged below 30 % 30.9 26.4 24.5

34

Male Person 623980 627408 626242 By age Aged 30-50 % 13.6 12.1 12.6

By gender

Female Person 119397 119169 113300 Aged over 50 % 7.2 7.4 8.2

Aged below 30 Person 244875 226221 232004 Mainland China % 17.2 15.2 13.7

By age Aged 30-50 Person 485308 508251 492255 By region35 Hong Kong Macao and Taiwan % 25.3 22.5 23.6

Aged over 50 Person 13194 12105 15283 Overseas % 55.2 43.3 83.1

Management (including

primary-level managers) Person 25374 26025 25940 Workforce rights and interests

By job functions Professional Person 47804 43725 41069 Percentage of workforce covered by collective agreement % 49.0 100.0 100.0

Primary-level Person 670167 676827 672303 Employee satisfaction % 86.4 87.8 92.3

Mainland China Person 699795 711666 707042 Health and safety

Hong Kong Macao and The number of working days lost due to injury Day 36959 34282 39228By region Taiwan Person 7158 7176 6662

Deaths due to work-related injuries Person 54 58 37

Overseas Person 36424 27735 25838

Death rate due to work-related injuries36 Per hundred 0.0073 0.0078 0.0050

Full-time Person 630072 647728 629917 workforce

By job type

Part-time Person 113305 98849 109625 Per million Lost-time injury rate37 hours 1.76 2.35 2.07

worked

Number of new hires Person 323493 305817 215118

Number of aviation accidents Case 0 0 0

Number of new female hires Person 61606 53894 41382

Number of truck drivers Person 32061 30034 32566

Number of departures

Total departures Person 142540 122037 119993

Turnover rate32 % 19.2 16.3 16.2

33 Turnover rate by gender = Number of departures of male or female ÷ Number of male or female

34 Turnover rate by age = Number of departures by age ÷ Number of workforce by age

35 Turnover rate by region = Number of departures by region ÷ Number of workforce by region

36 Death rate due to work-related injuries = Number of workforce deaths due to work-related injuries ÷ Total workforce × 100

37 Lost-time injury rate = Number of lost man-hours accidents ÷ Number of hours actually worked × 1000000

32 Turnover rate = Total departures ÷ Total workforce162 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 163

Indicator -Society Unit 2022 2023 2024 Indicator -Society Unit 2022 2023 2024

Training and development Supply chain management

Total number of training sessions Session 18923 34846 39047 Total number of suppliers42 Company 12414 10932 3881

Training & development expenditure RMB10000 6547 7887 10842 Mainland China Company 11728 10271 3872

Number of trained workforce

By region Hong Kong Macao and Taiwan Company 169 51 1

Total number of trained workforce Person 728201 724277 711311

Male Person 613328 612206 605503 Overseas Company 517 519 8

By gender

Female Person 114873 112071 105820 Total number of Tier-1 suppliers Company 610

Management (including Person 24297 23053 23725 Total number of significant suppliers in Tier-1 Company 442primary-level managers) New indicators added in 2024

By job functions Percentage of total spend on significant suppliers in Tier-1 % 98.4Professional Person 38953 37565 39189

Primary-level Person 664951 663709 647448 Total number of significant suppliers in non Tier-1 Company 980

Percentage of trained workforce % 98.0 97.0 96.2 Product liability

Male % 84.2 84.5 85.1 Number of products and service related valid complaints received43 Case 351 2195 11815By gender38

Female % 15.8 15.5 14.9

Number of major safety and quality liability accidents

Management (including related to products and services that occurred during the Case 0 0 0

primary-level managers) % 3.3 3.2 3.3 reporting period

By job functions39 Professional % 5.4 5.2 5.5 The amount of damages involved in major safety and

quality liability accidents related to products and services RMB10000 0 0 0

Primary-level % 91.3 91.6 91.0 that occurred during the reporting period

Training hours Anti-corruption

Total training hours Hour 4351473 5644982 6768687 The number of legal proceedings brought and concluded

against the Company or its workforce for corruption Case 2 4 0

Average training hours per trained workforce Hour 6.0 7.8 9.2

Anti-corruption training

Male Hour 5.9 7.8 9.2

By gender40 Total hours of anti-corruption training Hour 32336 70073 62326

Female Hour 6.1 7.9 9.0

Number of workforce involved in anti-corruption training Person 67893 121701 59891

Management (including

primary-level managers) Hour 4.6 7.1 8.6 Number of directors involved in anti-corruption training Person 7 7 7

By job functions41 Professional Hour 4.9 7.8 10.5 Percentage of directors participating in anti-corruption

training % 100.0 100.0 100.0

Primary-level Hour 5.5 7.6 9.1

Number of management involved in anti-corruption training Person New indicators added in 2024 3714

42 In 2024 the Company optimized the statistical criteria for the number of suppliers counting only those suppliers with whom actual business transactions

occurred during the reporting year. As a result the total number of suppliers decreased compared to previous years.

38 Percentage of trained workforce by gender = Number of trained male or female ÷ Total number of trained workforce 43 Data source: Postal Industry Complaint Service Platform of the People’s Republic of China State Post Bureau. Due to the system reconstruction of

39 Percentage of trained workforce by job functions = Number of trained workforce by job functions ÷ Total number of trained workforce the Postal Industry Complaint Service Platform and adjustments to the complaint acceptance rules the number of complaints in 2024 has increased

40 Average training hours per trained workforce by gender = Total training hours of male or female ÷ Number of trained male or female compared to previous years.

41 Average training hours per trained workforce by job functions = Total training hours by job functions ÷ Number of trained workforce by job functions164 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 165

Indicator -Society Unit 2022 2023 2024 Sustainability Report Content Index

Community investment

Donations to community activities RMB10000 11885 10590 7177 Index to the HKEx’s ESG Reporting Code

Community activity expenses (excluding donations) RMB10000 94 101 80

ESG Metrics Location/Note

Number of volunteer activity participations Person-time 7226 8921 7662

Mandatory Disclosure Requirements

Total hours of volunteer activity Hour 1206286 35308 35671

Governance Structure

Innovation driven

(i) a disclosure of the board’s oversight of ESG issues;

The amount of R&D investment RMB10000 352814 336329 309371

the board’s ESG management approach and strategy including the process used to

Percentage of R&D investment to operating revenue % 1.3 1.3 1.1 (ii) evaluate prioritise and manage material ESG-related issues (including risks to the Sustainability

issuer’s businesses); and Management

Number of R&D personnel Person 5652 4637 4193

Number of valid patents during the reporting period Patent 1749 2003 2252 (iii)

how the board reviews progress made against ESG-related goals and targets with an

explanation of how they relate to the issuer’s businesses.Number of invention patent applications during the Patent 418 337 263 Reporting Principlesreporting period

The ESG report should disclose: (i) the process to identify and the criteria for the Sustainability

Number of granted invention patents during the reporting Patent 110 188 314 Materiality selection of material ESG factors; (ii) if a stakeholder engagement is conducted a Managementperiod description of significant stakeholders identified and the process and results of the

issuer’s stakeholder engagement. About the Report

Number of invention patents applied to the principal

business Patent 682 730 783 Information on the standards methodologies assumptions and/or calculation tools used Key Performance

Quantitative and source of conversion factors used for the reporting of emissions/energy consumption Indicators

Data security and privacy protection (where applicable) should be disclosed. About the Report

Number of data security incidents that occurred during

the reporting period Case 0 0 0 Key Performance

Consistency The issuer should disclose in the ESG report any changes to the methods or KPIs used Indicatorsor any other relevant factors affecting a meaningful comparison.Specific amounts involved in data security incidents RMB10000 0 0 0 About the Report

Number of customer privacy breaches that occurred during

the reporting period Case 0 0 0

Reporting Boundary

A narrative explaining the reporting boundaries of the ESG report and describing the process used to identify

The specific amount involved in the customer privacy RMB10000 0 0 0 which entities or operations are included in the ESG report. If there is a change in the scope the issuer should About the Reportbreach incident explain the difference and reason for the change.Anti-monopoly and anti-unfair competition “Comply or explain” Provisions

Number of lawsuits or major administrative penalties Aspect A1: Emissions

caused by the company’s monopoly and unfair competition Case 0 0 0

behavior during the reporting period Relating to air emissions discharges into water and land and generation of hazardous

and non-hazardous waste.The amount involved in lawsuits or major administrative

penalties caused by the company’s monopoly and unfair RMB10000 0 0 0 (a) the policies; and

competition behavior during the reporting period Practice Green General Disclosure Operation

Information on: (b) compliance with relevant laws and regulations that have a significant impact on

the issuer Policy List

Note: Air emissions include NOx SOx and other pollutants regulated under national laws and

regulations. Hazardous wastes are those defined by national regulations.KPI A1.1 The types of emissions and respective emissions data. Key Performance Indicators166 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 167

ESG Metrics Location/Note ESG Metrics Location/Note

KPI A1.3 Total hazardous waste produced (in tonnes) and where appropriate intensity (e.g. per Key Performance Aspect B2: Health and Safetyunit of production volume per facility). Indicators

relating to providing a safe working environment and protecting employees from

KPI A1.4 Total non-hazardous waste produced (in tonnes) and where appropriate intensity (e.g. Key Performance occupational hazards.per unit of production volume per facility). Indicators Stand Firm on the

General Disclosure (a) the policies; and Frontline of Safety

KPI A1.5 Description of emission target(s) set and steps taken to achieve them. Practice Green Policy ListOperation (b) compliance with relevant laws and regulations that have a significant impact on

the issuer

KPI A1.6 Description of how hazardous and non-hazardous wastes are handled and a description Practice Green of reduction target(s) set and steps taken to achieve them. Operation

KPI B2.1 Number and rate of work-related fatalities occurred in each of the past three years Key Performance including the reporting year. Indicators

Aspect A2: Use of Resources

KPI B2.2 Lost days due to work injury. Key Performance Policies on the efficient use of resources including energy water and other raw Indicators

materials.General Disclosure Practice Green Description of occupational health and safety measures adopted and how they are Stable and Safe

Note: Resources may be used in production in storage transportation in buildings electronic KPI B2.3Operation implemented and monitored. Production

equipment etc.Policy List Aspect B3: Development and Training

KPI A2.1 Direct and/or indirect energy consumption by type (e.g. electricity gas or oil) in total (kWh in ’000s) and intensity (e.g. per unit of production volume per facility). Policies on improving employees’ knowledge and skills for discharging duties at work.Description of training activities. Construction of

KPI A2.2 Water consumption in total and intensity (e.g. per unit of production volume per facility). Key Performance General DisclosureIndicators Note: Training refers to vocational training. It may include internal and external courses Talent Team

paid by the employer.KPI A2.3 Description of energy use efficiency target(s) set and steps taken to achieve them. Practice Green Operation

KPI B3.1 The percentage of employees trained by gender and employee category (e.g. senior Key Performance management middle management). Indicators

KPI A2.4 Description of whether there is any issue in sourcing water that is fit for purpose water Practice Green efficiency target(s) set and steps taken to achieve them. Operation

KPI B3.2 The average training hours completed per employee by gender and employee category. Key Performance Indicators

KPI A2.5 Total packaging material used for finished products (in tonnes) and if applicable with Key Performance reference to per unit produced. Indicators Aspect B4: Labour Standards

Aspect A3: The Environment and Natural Resources relating to preventing child and forced labour.Practice Green

Policies on minimising the issuer’s significant impacts on the environment and natural General Disclosure (a) the policies; andGeneral Disclosure Operation Protecting resources.Policy List (b) compliance with relevant laws and regulations that have a significant impact on Employees’ Rights

the issuer and Interests

Practice Green Policy List

Operation KPI B4.1 Description of measures to review employment practices to avoid child and forced labour.KPI A3.1 Description of the significant impacts of activities on the environment and natural

Safeguarding KPI B4.2 Description of steps taken to eliminate such practices when discovered.resources and the actions taken to manage them. Ecological Environments Aspect B5: Supply Chain Management

Creating Green

Logistics Building a

General Disclosure Policies on managing environmental and social risks of the supply chain. Responsibility

Aspect B1: Employment Value Chain

relating to compensation and dismissal recruitment and promotion working hours rest KPI B5.1 Number of suppliers by geographical region. Key Performance

periods equal opportunity diversity anti-discrimination and other benefits and welfare. Protecting Indicators

Employees’ Rights

General Disclosure (a) the policies; and and Interests KPI B5.2 Description of practices relating to engaging suppliers number of suppliers where the

Building a

Policy List practices are being implemented and how they are implemented and monitored.Responsibility

(b) compliance with relevant laws and regulations that have a significant impact on Value Chain

the issuer

Description of practices used to identify environmental and social risks along the supply Building a

KPI B1.1 Total workforce by gender employment type (for example full- or part-time) age group Key Performance

KPI B5.3 chain and how they are implemented and monitored. Responsibility

and geographical region. Indicators Value Chain

KPI B1.2 Employee turnover rate by gender age group and geographical region. Key Performance KPI B5.4 Description of practices used to promote environmentally preferable products and

Building a

Indicators services when selecting suppliers and how they are implemented and monitored. Responsibility Value Chain168 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 169

ESG Metrics Location/Note ESG Metrics Location/Note

Aspect B6: Product Responsibility Aspect B8: Community Investment

relating to health and safety advertising labelling and privacy matters relating to Delivering Policies on community engagement to understand the needs of the communities where Sustaining

products and services provided and methods of redress. Premium Services General Disclosure the issuer operates and to ensure its activities take into consideration the communities’ Commitments to

interests. Social Wellbeing

(a) the policies; and Securing Safety Delivery

General Disclosure

KPI B8.1 Focus areas of contribution (e.g. education environmental concerns labour needs

Sustaining

Ensuring health culture sport). Commitments to

(b) compliance with relevant laws and regulations that have a significant impact on Information Social Wellbeing

the issuer Security

Sustaining

Policy List Commitments to

The company’s KPI B8.2 Resources contributed (e.g. money or time) to the focus area.Social Wellbeing

scope of business Key Performance

as a logistics and Indicators

transport service

KPI B6.1 Percentage of total products sold or shipped subject to recalls for safety and health provider does Part D: Climate-related Disclosuresreasons. not involve the

health and safety This section is effective for financial years beginning on or after January 1 2025. During the reporting period the Company disclosedimplications of its emissions in accordance with paragraph 17(1) of Part D: “An issuer must disclose its Scope 1 greenhouse gas emissions and Scopeits products and 2 greenhouse gas emissions pursuant to paragraphs 28(a) 28(b) and 29 on a mandatory basis.”

services.

28. An issuer shall (a) Scope 1 greenhouse gas emissions;

KPI B6.2 Number of products and service related complaints received and how they are dealt with. Delivering disclose its absolute Premium Services gross greenhouse

gas em iss ions

KPI B6.3 Description of practices relating to observing and protecting intellectual property rights. Abiding by generated during Key Performance Business Ethics the reporting period

e x p r e s s e d a s (b) Scope 2 greenhouse gas emissions;

Indicators

The company’s metric tons of CO2

scope of business equivalent classified

as a logistics as:

and transport

KPI B6.4 Description of quality assurance process and recall procedures. service provider (a) measure its greenhouse gas emissions in accordance with the Greenhouse Gas does not involve Protocol: A Corporate Accounting and Reporting Standard (2004) unless required

quality checking by a jurisdictional authority or another exchange on which the issuer is listed to

processes or use a different method for measuring greenhouse gas emissions;

product recall

procedures. (b) disclose the approach it uses to measure its greenhouse gas emissions including:

(i) the measurement approach inputs and assumptions the issuer uses to

Description of consumer data protection and privacy policies and how they are Ensuring measure its greenhouse gas emissions; (ii) the reason why the issuer has chosen KPI B6.5 implemented and monitored. Information 29. An issuer shall: the measurement approach inputs and assumptions it uses to measure its

Key Performance

Security greenhouse gas emissions; and (iii) any changes the issuer made to the Indicators

measurement approach inputs and assumptions during the reporting period and

Aspect B7: Anti-corruption the reasons for those changes;

relating to bribery extortion fraud and money laundering. (c) for Scope 2 greenhouse gas emissions disclosed in accordance with paragraph

Abiding by 28(b) disclose its location-based Scope 2 greenhouse gas emissions and provide

General Disclosure (a) the policies; and Business Ethics

information about any contractual instruments that is necessary to enable an

understanding of the issuer’s Scope 2 greenhouse gas emissions; and

(b) compliance with relevant laws and regulations that have a significant impact on Policy List

the issuer

KPI B7.1 Number of concluded legal cases regarding corrupt practices brought against the issuer Key Performance or its employees during the reporting period and the outcomes of the cases. Indicators

KPI B7.2 Description of preventive measures and whistle-blowing procedures and how they are Abiding by implemented and monitored. Business Ethics

Abiding by

Business Ethics

KPI B7.3 Description of anti-corruption training provided to directors and staff.Key Performance

Indicators170 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 171

Index to the Shenzhen Stock Exchange’s Self-Regulatory Guidance No. 17 for Disclosure Requirement Location

Listed Companies — Sustainability Report (Trial) Construction of Talent Team

Protecting Employees’ Rights and Interests

Disclosure Requirement Location

In compliance with relevant statutory provisions the company is

Addressing Climate Change Addressing Climate Change Employees not categorized as a production and operation entity in the high-risk

industries or fields as defined by the state and thus is not subject

Pollutant Emissions Practice Green Operation to the mandatory requirement of subscribing to Safety Production Liability Insurance. The company has procured Employer’s Liability

Insurance and Property Public Liability Insurance to augment the

Waste Management Practice Green Operation safeguarding of its employees and third parties.Ecosystem and Biodiversity Conservation Safeguarding Ecological Environments In 2024 the Company did not experience any significant ESG-

related negative events. Currently the Company has not

Environmental Compliance Management Practice Green Operation established a comprehensive due diligence process. Moving

Due Diligence forward the Company will gradually develop an ESG due diligence

Energy Utilization Practice Green Operation mechanism drawing on industry best practices and international

sustainability disclosure standards while integrating its own

Water Resource Practice Green Operation business characteristics.Promoting Circular Economy Stakeholder Communication Sustainability Management

Circular Economy

Creating Green Logistics Anti-Bribery and Anti-corruption Abiding by Business Ethics

Rural Revitalization Sustaining Commitments to Social Wellbeing Anti-unfair Competition Abiding by Business Ethics

Social Contributions Sustaining Commitments to Social Wellbeing Green Packaging Developing Sustainable Packaging

Technology Innovation Pioneering Intelligent Logistics Innovation Diversity and Inclusion Protecting Employees’ Rights and Interests

Ethics of Science and Technology Pioneering Intelligent Logistics Innovation Safety Delivery and Transportation Stand Firm on the Frontline of Safety Stable and Safe Production

Supply Chain Security and Resilience Building a Responsibility Value Chain Building a Green and Intelligent Industrial Chain Creating Green Logistics

Equal Treatment of Small and Medium-sized Enterprises (SMEs) Building a Responsibility Value Chain Corporate Governance Standardize Corporate Governance

Delivering Premium Services

Product and Service Safety and Quality

Securing Safety Delivery

Data Security and Customer Privacy Protection Ensuring Information Security172 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 173

GRI Standard Content Index GRI Standard

Indicator No. GRI Standard Indicator Location/Note

Statement of use SF referred to the GRI standards for preparation of the Report covering the period from January 1 2024 to December 31 2024. 2-18 Evaluation of the performance of the highest governance body Sustainability Management

GRI 1 used GRI 1: Foundation 2021 2-19 Remuneration policies Sustainability Management

GRI Standard 2-20 Process to determine remuneration Sustainability Management

Indicator No. GRI Standard Indicator Location/Note

2-21 Annual total compensation ratio Confidentiality Limits

GRI 2: General Disclosures 2021

2-22 Statement on sustainable development strategy Sustainability Management

About SF

2-1 Organizational details 2-23 Policy commitments Sustainability Management

About the Report

2-24 Embedding policy commitments Sustainability Management

2-2 Entities included in the organization’s sustainability reporting About the Report

In 2024 the Company did not experience any

2-3 Reporting period frequency and contact point About the Report significant ESG-related negative events. Currently

the Company has not established a comprehensive

2-4 Restatements of information About the Report due diligence process. Moving forward the

2-25 Processes to remediate negative impacts Company will gradually develop an ESG due

2-5 External assurance Assurance Statement diligence mechanism drawing on industry best

practices and international sustainability disclosure

About SF standards while integrating its own business characteristics.

2-6 Activities value chain and other business relationships Building a Responsibility Value Chain

Services: Empowering New-Quality Productivity 2-26 Mechanisms for seeking advice and raising concerns Sustainability Management

Through Digital Intelligence

2-27 Compliance with laws and regulations Policy List

Construction of Talent Team

2-28 Membership associations Driving Industry Synergy and Shared Progress

2-7 Employees Protecting Employees’ Rights and Interests

Key Performance 2-29 Approach to stakeholder engagement Sustainability Management

Construction of Talent Team 2-30 Collective bargaining agreements Smooth Employee Voice

2-8 Workers who are not employees Protecting Employees’ Rights and Interests GRI 3: Material Topics 2021

Key Performance

3-1 Process to determine material topics Sustainability Management

2-9 Governance structure and composition Standardize Corporate Governance

3-2 List of material topics Sustainability Management

2-10 Nomination and selection of the highest governance body Standardize Corporate Governance

3-3 Management of material topics Sustainability Management

2-11 Chair of the highest governance body Standardize Corporate Governance

GRI 101: Biodiversity 2024

2-12 Role of the highest governance body in overseeing the management of impacts Standardize Corporate Governance 101-1 Policies to halt and reverse biodiversity loss Not Applicable

2-13 Delegation of responsibility for managing impacts Sustainability Management 101-2 Management of biodiversity impacts Safeguarding Ecological Environments

2-14 Role of the highest governance body in sustainability reporting Sustainability Management 101-3 Access and benefit-sharing Not Applicable

Abiding by Business Ethics 101-4 Identification of biodiversity impacts Safeguarding Ecological Environments

2-15 Conflicts of interest

Building a Responsibility Value Chain 101-5 Locations with biodiversity impacts Safeguarding Ecological Environments

2-16 Communication of critical concerns Sustainability Management 101-6 Direct drivers of biodiversity loss Not Applicable

2-17 Collective knowledge of the highest governance body Sustainability Management 101-7 Changes to the state of biodiversity Safeguarding Ecological Environments

101-8 Ecosystem services Safeguarding Ecological Environments174 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 175

GRI Standard GRI Standard

Indicator No. GRI Standard Indicator Location/Note Indicator No. GRI Standard Indicator Location/Note

GRI 201: Economic Performance 2016 301-2 Recycled input materials used Developing Sustainable Packaging

201-1 Direct economic value generated and distributed Please refer to the Company’s annual report 301-3 Reclaimed products and their packaging materials Developing Sustainable Packaging

201-2 Financial implications and other risks and opportunities due to climate change Addressing Climate Change

GRI 302: Energy 2016

201-3 Defined benefit plan obligations and other retirement plans Protecting Employees’ Rights and Interests 302-1 Energy consumption within the organization Key Performance Indicators

201-4 Financial assistance received from government Please refer to the Company’s annual report 302-2 Energy consumption outside of the organization Key Performance Indicators

GRI 202: Market Presence 2016 302-3 Energy intensity Key Performance Indicators

202-1 Ratios of standard entry level wage by gender compared to local minimum wage Confidentiality Limits

Creating Green Logistics

302-4 Reduction of energy consumption Building Green Industrial Park

202-2 Proportion of senior management hired from the local community Confidentiality Limits Practice Green Operation

GRI 203: Indirect Economic Impacts 2016 Creating Green Logistics302-5 Reductions in energy requirements of products and services

Building Green Industrial Park

203-1 Infrastructure investments and services supported Sustaining Commitments to Social Wellbeing

203-2 Significant indirect economic impacts Sustaining Commitments to Social Wellbeing GRI 303: Water and Effluents 2018

GRI 204: Procurement Practices 2016 Building Green Industrial Park303-1 Interactions with water as a shared resource

Practice Green Operation

204-1 Proportion of spending on local suppliers Confidentiality Limits

GRI 205: Anti-corruption 2016 Building Green Industrial Park303-2 Management of water discharge-related impacts

Practice Green Operation

205-1 Operations assessed for risks related to corruption Abiding by Business Ethics

Practice Green Operation

205-2 Communication and training about anti-corruption policies 303-3 Water withdrawaland procedures Abiding by Business Ethics Key Performance Indicators

205-3 Confirmed incidents of corruption and actions taken Abiding by Business Ethics 303-4 Water discharge Practice Green Operation

GRI 206: Anti-competitive Behavior 2016 Practice Green Operation

303-5 Water consumption

206-1 Legal actions for anti-competitive behavior anti-trust and monopoly practices Abiding by Business Ethics

Key Performance Indicators

GRI 305: Emissions 2016

GRI 207: Tax 2019

207-1 Approach to tax Please refer to the Company’s annual report 305-1 Direct (Scope 1) GHG emissions Key Performance Indicators

207-2 Tax governance control and risk management Please refer to the Company’s annual report 305-2 Energy indirect (Scope 2) GHG emissions Key Performance Indicators

207-3 Stakeholder engagement and management of concerns Please refer to the Company’s annual report 305-3 Other indirect (Scope 3) GHG emissions Key Performance Indicatorsrelated to tax

Key Performance Indicators

207-4 Country-by-country reporting Not Applicable 305-4 GHG emissions intensity

Creating Green Logistics

GRI 301: Materials 2016

Creating Green Logistics

Developing Sustainable Packaging 305-5 Reduction of GHG emissions

301-1 Materials used by weight or volume Developing Sustainable Packaging

Key Performance Indicators176 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 177

GRI Standard

Indicator No. GRI Standard Indicator Location/Note

GRI Standard

Indicator No. GRI Standard Indicator Location/Note

305-6 Emissions of ozone-depleting substances (ODS) Not Applicable 404-2 Programs for upgrading employee skills and transition assistance programs Construction of Talent Team

305-7 Nitrogen oxides (NOx) sulfur oxides (SOx) and other significant air emissions Key Performance Indicators

404-3 Percentage of employees receiving regular performance and career development reviews Construction of Talent Team

GRI 306: Waste 2020

GRI 405: Diversity and Equal Opportunity 2016

306-1 Waste generation and significant waste-related impacts Practice Green Operation

306-2 Management of significant waste-related impacts Practice Green Operation 405-1 Diversity of governance bodies and employees Protecting Employees’ Rights and Interests

306-3 Waste generated Key Performance Indicators 405-2 Ratio of basic salary and remuneration of women to men Protecting Employees’ Rights and Interests

306-4 Waste diverted from disposal Practice Green Operation GRI 406: Non-discrimination 2016

306-5 Waste directed to disposal Practice Green Operation 406-1 Incidents of discrimination and corrective actions taken Protecting Employees’ Rights and Interests

GRI 308: Supplier Environmental Assessment 2016 GRI 407: Freedom of Association and Collective Bargaining 2016

308-1 New suppliers that were screened using environmental criteria Building a Responsibility Value Chain 407-1 Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk Protecting Employees’ Rights and Interests

308-2 Negative environmental impacts in the supply chain and actions taken Building a Responsibility Value Chain GRI 408: Child Labor 2016

GRI 401: Employment 2016 408-1 Operations and suppliers at significant risk for incidents of child labor Protecting Employees’ Rights and Interests

401-1 New employee hires and employee turnover Key Performance Indicators

GRI 409: Forced or Compulsory Labor 2016

401-2 Benefits provided to full-time employees that are not provided to temporary or part-time employees Protecting Employees’ Rights and Interests

409-1 Operations and suppliers at significant risk for incidents of forced or compulsory labor Protecting Employees’ Rights and Interests

401-3 Parental leave Protecting Employees’ Rights and Interests

GRI 402: Labor/Management Relations 2016 GRI 413: Local Communities 2016

402-1 Minimum notice periods regarding operational changes Protecting Employees’ Rights and Interests 413-1 Operations with local community engagement impact assessments and development programs Not Applicable

GRI 403: Occupational Health and Safety 2018

413-2 Operations with significant actual and potential negative Not Applicable

403-1 Occupational health and safety management system Stand Firm on the Frontline of Safety impacts on local communities

403-2 Hazard identification risk assessment and incident investigation Stable and Safe Production

GRI 414: Supplier Social Assessment 2016

414-1 New suppliers that were screened using social criteria Building a Responsibility Value Chain

403-3 Occupational health services Stable and Safe Production

Negative social impacts in the supply chain and actions

403-4 Worker participation consultation and communication on

Stand Firm on the Frontline of Safety 414-2 taken Building a Responsibility Value Chain

occupational health and safety Stable and Safe Production

GRI 415: Public Policy 2016

403-5 Worker training on occupational health and safety Stable and Safe Production

415-1 Political contributions Not Applicable

Protecting Employees’ Rights and Interests

403-6 Promotion of worker health

Stable and Safe Production GRI 416: Customer Health and Safety 2016

403-7 Prevention and mitigation of occupational health and safety impacts directly linked by business relationships Stable and Safe Production 416-1

Assessment of the health and safety impacts of product and

service categories Stable and Safe Production

403-8 Workers covered by an occupational health and safety management system Stand Firm on the Frontline of Safety 416-2

Incidents of non-compliance concerning the health and

safety impacts of products and services Stable and Safe Production

403-9 Work-related injuries Key Performance GRI 417: Marketing and Labeling 2016

403-10 Work-related ill health Key Performance

417-1 Requirements for product and service information and

Delivering Premium Services

GRI 404: Training and Education 2016 labeling Securing Safety Delivery

404-1 Average hours of training per year per employee Key Performance

417-2 Incidents of non-compliance concerning product and service There were no violations involving product and information and labeling service information and labelling in 2024 in SF.178 SF Holding 2024 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices 179

GRI Standard Sustainability Accounting Standards Board Index (SASB Content Index)

Indicator No. GRI Standard Indicator Location/Note

Sustainability Disclosure Topics & Accounting Metrics

417-3 Incidents of non-compliance concerning marketing There were no breaches involving marketing communications communications in 2024 for SF. Topic Accounting Metric Category Code Location

Gross global Scope 1 emissions Quantitative TR-AF-110a.1 Key Performance GRI 418: Customer Privacy 2016 Indicators

418-1 Substantiated complaints concerning breaches of customer Discussion of long- and short-term strategy or plan privacy and losses of customer data Ensuring Information Security to manage Scope 1 emissions emissions reduction Discussion Addressing

Greenhouse targets and an analysis of performance against those and Analysis

TR-AF-110a.2 Climate Change

Addressing Climate Change Gas Emissions targets

3-3 Management of material topics Addressing Climate Change Creating Green

Fuel consumed by (1) road transport percentage (a) Logistics

Circular Economy natural gas and (b) renewable and (2) air transport Quantitative TR-AF-110a.3

percentage (a) alternative and (b) sustainable Key Performance

3-3 Management of material topics Promoting Circular Economy Indicators

Air emissions of the following pollutants: (1) NOx

Green Packaging Air Quality (excluding N2O) (2) SOx and (3) particulate matter Quantitative TR-AF-120a.1 Key Performance

(PM10) Indicators

Promoting Circular Economy

3-3 Management of material topics

Developing Sustainable Packaging Percentage of drivers classified as independent contractors Quantitative TR-AF-310a.1 Not Applicable

Labour Practices

Environmental Compliance Management Total amount of monetary losses as a result of legal

proceedings associated with labour law violations Quantitative TR-AF-310a.2 Not Applicable

3-3 Management of material topics Practice Green Operation

Employee (1) Total recordable incident rate (TRIR) and (2) Key Performance

Rural Revitalization Health & Safety fatality rate for (a) direct employees and (b) contract Quantitative TR-AF-320a.1employees Indicators

3-3 Management of material topics Sustaining Commitments to Social Wellbeing Percentage of carriers with BASIC percentiles above

the FMCSA intervention threshold Quantitative TR-AF-430a.1 Not ApplicableSocial Contribution Supply Chain

Management Total greenhouse gas (GHG) footprint across transport

3-3 Management of material topics Sustaining Commitments to Social Wellbeing modes Quantitative TR-AF-430a.2 Not Applicable

Innovation-Driven Development Description of implementation and outcomes of a Discussion Stand Firm on

Safety Management System and Analysis TR-AF-540a.1 the Frontline of 3-3 Management of material topics Pioneering Intelligent Logistics Innovation Safety

Ethics in Science and Technology Number of aviation accidents Quantitative TR-AF-540a.2 Key Performance

Accident Indicators

3-3 Management of material topics Pioneering Intelligent Logistics Innovation & Safety Number of road accidents and incidents Quantitative TR-AF-540a.3 Not Applicable

Management

Supply Chain Security and Resilience Safety Measurement System BASIC percentiles for:

(1) Unsafe Driving (2) Hours-of-Service Compliance

3-3 Management of material topics Building a Responsibility Value Chain (3) Driver Fitness (4) Controlled Substances/Alcohol Quantitative TR-AF-540a.4 Not Applicable

(5) Vehicle Maintenance and (6) Hazardous Materials

Equal Treatment of Small and Medium-sized Enterprises (SMEs) Compliance

3-3 Management of material topics Building a Responsibility Value Chain

Table. Activity Metrics

Safety Delivery and Transportation

Activity Metric Category Code Location

Stand Firm on the Frontline of Safety

3-3 Management of material topics

Stable and Safe Production Revenue ton kilometres (RTK) for: (1) road transport and (2) air transport2 Quantitative TR-AF-000.A Not Applicable

Building a Green and Intelligent Industrial Chain Load factor for: (1) road transport and (2) air transport Quantitative TR-AF-000.B Not Applicable

3-3 Management of material topics Creating Green Logistics Number of employees number of truck drivers Quantitative TR-AF-001.C Key Performance IndicatorsWE DELIVER AS PROMISED

S.F. Holding Co. Ltd.Post code: 518057 Customer service hotline: 95338

Website: http://www.sf-express.com

Address:TK Chuangzhi Tiandi Building Keji South 1st Road

Nanshan DistrictShenzhen Guangdong Province the PRC