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Xingtong Shipping Co., Ltd.
2024 Environmental, Social, and Governance (ESG) Report
2024
Contents
About This Report 01
Message from the 03 General Manager
About Xingtong 05 Shipping
Company Profile 05
Business Overview 05
Strategy and Culture 11
Milestones 13
Honors and Achievements in2024 15
Customer Recognition and 17
Qualification Certification
Compliance Leadership: Ensuring Stable and Long-term Development
Governance forSustainable Development 21
Standardization of Corporate Governance 27
Protectionof Investors'Rights and Interests 30
Enhancement of theRiskDefense Line 33
Compliance and Business Ethics 35
Low-Carbon Transformation: Leading the Future of Shipping
Response to Climate Change 39
Environmental Compliance Management 44
Improvement of Resource Efficiency 52
Enhanced Defense Line: Safeguarding the Safety of Shipping
Governance of Navigation Safety 61
Protection of Safety and Health 67
Construction of Safety Culture 71
Shared Responsibility:Seeking CollaborativeGrowthandMutual Prosperity
Protection of Employees' Rights and Interests 91
OptimizationofRemuneration and Benefits 95
Employee Care and Support 97
Scientific and Democratic Management 99
Building of High-Quality Teams 101
Dedication to Social Contribution 104
United Cooperation: Building Sustainable'Development Together
Afterword to this Report
Enhancement of Development Resilience 77
Intelligent Shipping Ecosystem 81
Joint Promotion of Industry Development 83
Sustainable Supply Chains 85
Protection of Information Security 87
ESG Key PerformanceIndicators 107
Terms and Definitions 114
Indexes 115
Feedback 117
About This Report
Thisis the thirdEnvironmental,Social and Governance Report (the“ESG Report”)issed byXingtong Shipping Co.Ltd.(th Compantiftitytaddizatapedhnesthrtid disclosure of theCompany'spractices and performance inenvironmental social andgovernance fortheyear24.
Reporting Scope
ThisreportceringtongShpinod.anditssuidiarielsstheispeifiedthofthis consistent withthat of the Comany'sAnnual ReportForeaseof expressionand readabity,Xingtong Shipping CoLtd is referred to as“Xingtong Shipping”, “Xingtong", the Company” or "We”, and “XT-IMC Shipping Co. Ltd. isreferred to as "XT-IMC" in this report.
Reporting Period
Thisreportcoverstheperiod fromJanuary12024toDecember31,2024（the“Reporting Period.Toimprove thecomparabityand completenesssome sectionsof thisreport maybeappropriatlyrefered topreviousyears orcontainfor ward-looking statements.Thisreport isreleased on an annualbasis,consistent with thefinancial year.
Preparation Basis
CorporateSustainabilityDisclosureStandards——BasicStandards(forTrial Implementation)
Shanghai Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 14 - Sustainability Report (for Trial Imle
mentation)
●Chinese Academy of Social Sciences (CASS) Guidelines for Preparing Corporate Social Responsibity Reports in China
(CASS-ESG 6.0)
Global Reporting Initiative SustainabilityReporting Standards(GRI Standards)(2021)
OUN Sustainable Development Goals (SDGs)
OSustainabilityAccounting Standards Board (SASB)Standards
Data Sources
Datasourceued inthisreortncludepublicdatafrmgvement gencisthactualperational dtaanualfinnci datainlsttistilrfthmantrtyqstiireuryltiri ThefinancialdatainthisreortsexpressedinRMB.Foranydicrepancybetweenthisreortandthefinancialstatement, thefinancial statementsshallprevail.
Confirmation and Approval
This report was approved by theCompany's Board of Diretors on 2432025 and was subsequently released inconjunction withtheualReorhordlestexrciersightvetheontntsfthisrportnurngitsecf falserecordrmisleadingrpresetationandasingnsibitforitstrutfsccurayandcml
ThisreportispulihedChnesewiththeEnglshersionerivdfrtheChneetranslationtheeventofandisr anciesbetweenthetwoversions,theChineseversionshallprevail.
① Access to this Report
This report isavailableforeviewanddwload ontheffialwesitesofthe Companyhps://ww.xtshipping.com）and theShanghai StockExchange(http://www.sse.com.cn).
Message from General Manager
Across the continents and oceans around the world, Xingtong' s ships sail day and night, tirelessly pursuing new horizons.
With the ebb and flow of tides, Xingtong' s people remain steady and persistent,constantly forging new milestones.
Siceitsestblhtnghpnevttthewrapfbliqddnergearei tdtrdcadstiallgtatdicrvifialuplntr introducedpolicietstrengthenitsosiionsaMarinePweandraportationPowrmtethedualcirculationdl mentadaaettdigitatrgistidstciltrai sionistthcreilntationlnrtighndsustainael ial hih-qualtydtanlevlntftnaretalfrstmerdlri for investors,support employees'dreams,and take on our socialresponsibilities and missions.
1. Sailing Forward Together and Exploring the Blue Ocean Ahead
Under thenationlstratgieofbuiling ChinntMarinePweandShpping wer,theComany seized thepprtunitf the times. Guided by the sqrt[4]{1+2+1}^{11} development strategy,wefocused on expanding and strengthening domesticliquid hazardous cargo trasprtatindndceeytrap andintatl hppinsurpilaanbtdigitalplafmtf grothefnloldhstichiltrapatxadpret chemicaltransportationmarketsandstrengthenourmainhazardouschemicalstransportationbusiness.
Keeping pewith thedstr shit twar grel-can, admt shpin,tCypize theft strt celeratsthntf shsdaf tt salygradtl 2024,weeaethefirst shippin enteprisewthstaisteel dmesticcical tanksexcdngWroght t yearfihihdstailstlchicaltkeereputinerationwiththaacitf4Wsofthef theRepoting rid,wehaverated3hipwithatotal capacityf 90Wand takthagestmarkt haref chl takershrsttthhtl of 157,hut interato, and6fretrae shwith ttal caacityf Wuntt
During theReporting Perid,the total freight vlumeof theComanyreached13.14milionmetric tons,withanincreas f 18.38% The internatiolisof thany,asrtant gwthriachedacagvlmofveilon tosforthye ingaositiveevelpmnt tredthefutur,theCmpaywilontietenhaceitsoreetitieneandmarketi. FollowingthtreddacinvatonadstrinardthohdfiultewilbaQuzasthquaeh focusing nadvancing the developent of th branchesinShanghai andSingaporeWewil asfulyverage theadvantagesof th HainanFreTraert and ng Kngandcntiuslyprovide first-classricetglobal custmers,tenhace theinfluf the “Xingtong” brand in international markets.
IIl . Innovating Cooperation Model and Achieving Win-Win Results
TheComanndtratcoratifrmwrkarmetwt&andestablhdajintenurewith SupplyChaingistiechnolgydawhllwdsubsiaryf&)amingtlantheentiresuplchancoerat inintenatlciclgisthangreanprioriinprtuitiean&willnhaerctiv tivenessinthegonglobalstratyandachiewnncoerationWealswilgradualy shitfrwngshptocnoli ships",and continuously expand the scale of the company'sfleet.
Ill . Upgrading the Safety System and Strengthening the Safety Foundation
Xingtong Shipping,taking the continuousimprovement of safety managementcapabilities as animportant competitivenessfor sustainable development, continuously upgrades and optimizes its safety management system by absorbing the globally leading safetymanagementexperienceandintegratingnew-generation digital information technologies. As of the end of the Reporting Period, the Company has been honored as a“Safety and Integrity Company”for 7 consecutive years, with a total of 8 ships recognized as“Safety and Integrity Ships” and 12 captains as“Safety and Integrity Captains". In 2024, the Company received and passed a total of 70 inspections from the Ship Inspection and Reporting Program (SIRE) and the Chemical Distribution Institute (CDI). In 2024, the Company officially joined the Shell Marine Partner in Safety Programme.This marks an important milestone in theCompany's effortstobenchmarkand establishinternational safety management systems.
IV . Valiantly Advancing with Steady Progress and Strictly Adhering to Compliance Governance
Xingtong Shipping always adheres to compliant and standardized operations,and continuously strengthens its governance foundation. In 2024,the Company focused on key fields such as sustainabledevelopment management,riskmanagement andcomplianceenhancement.Wecontinuouslyimprovedandperfected our corporate governance structure and internal control systems, strengthened internal audit supervision，comprehensively prevented and controlled risks, and enhanced our refined management capabilities.These efforts strengthen our ability to manage withprecision,and empower ustoimplement our strategies and forge toward a brighter future efficiently.
V . Practicing Low-Carbon Paths and Supporting Green Shipping
Upholding the development philosophy of being“green,intelligent, and efficient"， Xingtong Shipping resolutely follows the low-carbon development path advocated by China.In 2024,the
Our fleet is steadily evolving to be more youthful,high-end, low-carbon and environment-friendly.This not only enhances our business competitiveness, promotes cost reduction and efficiency improvement, but also effectively assists in achieving green and environmentally friendly shipping and realizing the“carbon peaking and carbon neutrality” strategic goals.
VI .Venturing to Pursue Dreams and Crafting a Bright Future for Xingtong Shipping
Upholding the talent philosophy of “making Xingtong people better and gathering outstanding people at Xingtong"，we are committed to strengthening team building and creating "Magnetic Xingtong". In 2024,we continued to strengthen talent development and recruitment, and established a professionalandcareer-orientedtalentpipeline.Wealsopaid constantattention to thephysical and mentalhealthof employees,andtrulyimplementedemployee carebyimproving benefits,building cultural facilities,and organizing visits to the families of crew members.We strive to provide every Xingtong employeewithaninclusive andopengrowthenvironment,andworktogetherwiththemtocontributeto the valuecreationof theCompanyand theadvancementofthe shipping sector.
Setting sail with innovation and steering with mission,Xingtong Shippingwillcontinue topractice the philosophy of sustainable development, continue to explore and open up a newvoyage,and drawa morebrilliantblueprintfortheglobal shipping industry. In the wave of the globaleconomy,we will continuously deepen international cooperation,expandgreen shipping,and promote intelligent transformation， to deliver more efficient,safer,and more environment-friendly service. Wefirmlybelieve that,throughunremitting efforts and continuous innovation,Xingtong Shipping will play anevenmore significantrole in theglobalchemicallogistics sector and makegreatercontributionstotheprosperityanddevelop mentofbothChina andtheworld.
General Manager, Xingtong Shipping Co., Ltd.
About Xingtong Shipping
ICompany Profile
Foundedinebr9withregisteredcapitalfM80miionXingtngShipingCoLdismainyengaedinver shippingofulkliquiddangerouscargoMarh222,theCmpanywalistedontheShanghaiStokExchangeStocd 603209)isaVieiretonit of theChicalrnsrtationCmmiteefChnhpowerAssociationaVicePresidenttf FujanhpssiatrifQuhiadftthn in Fujian Province.
Xingtonghpittngwdcadmestialngtratdseiprdefhaluh Guided by the =1+2+1° strategicdevelopmentplan,weconstantlyexploreourmainbusinesesmprovequalityreducecostsandn creaseeffiencyAdiionallwefocusonexpanding and strengthening mesticliquidhazarduscartransprtationinast regiondyatdiatl hiildl iaafgr are evolving intoa comprehensive chemical supply chainproviderto achievehigh-quality development.
Embracinthdlnt tredfgreadintlitf thshptoinghippn marketevtrladtinl high-qualtydsteyevlnreetewetratsisteanroustgrthwitheandprf steadilyincreasingyearbyyear.n2024,weachievedanoperating revenueofRM1515billion,uby 22.43% year on year, and the net profit attributable to the shareholders of the listed company was RMB 350 million,up by 38.95% year on year.
EconomicPerformance
| OperatingRevenue (RMB million) | NetProfitAttributabletoShareholdersof the Listed Company (RMB million) |
| 2024 1,514.74 | 350.42 |
| 2023 1,237.27 | 252.20 |
| 2022 784.77 | 206.25 |
ComplianceLeadership: EnsunngStableandLong term Development
Low-Carbon Transformation:Leading theFutureof Shippin
EnhancedDefense Line :Safeguarding the Safetyof shipping
United Cooperation: Building Sustainable Development Together
Shared Responsibility: SeekingCollaborativeGrowth andMutualProsperity
Afterwordtothis Report
I Business Overview
Under theguidanceand support ofindustrypolicissuchasthethFive-YearPanforWatrTransortDevelopment,th Company,with keen insight, fullyseizes the devlopment opportunitie of the inland water trasport market and comreensively advances the “+2+1 development strategy. The Company is unwaveringly focused on building a green and inteligent maritime flet. By continuously optimizing operational proceses and introducing cuttng-edge technology and equipment we constantly enhance ur comprehensive serice capabiltis, and inject strong momentum into the green, ustainabl and high-quality development of the shipping industry.
Onthetlstttdie growthnmart sharthethhad,eactivlveturetthbanfintatinalusins wihapineing nvativeatu recisltrget markt gaadstrtcreateetie advatasin theintatial areadn the Compayrtdiitalzationandinteligent trasfomtonndethandfullyutlisadanced telgisuchasbid and artial itligeetwntpridevmeWthlidnlcrinatedefts thCmastadi ingtoward thegradgofbeingwclasenterpriwiutstanngdstryleandstrogalreatinabilt.
Improving Capacity Construction
TheComayntsuidaftfshpthat relaeygegh-ndreenentlintand uouslyexpandsthcapacitytmeet thdivrsiedeedfcustmerwithoreecellentseviceAfeearsfgrothh Companyhsbcealeading enterprise inthe desticcoastalulklquid chemical shipping ndustry,ccuping apromint positioninthmarket egmetAsf thendf224thmpanyeratatotalfbuklquidchicaltankerprdt tankers andG carierwitha total capacityof429500WTf these,29 are dmestic shipwithacombined capacityf 313800DWT, and 8are international shjps with a combined capacity of 15,700DWT (sme of the Company's Chinese-flagged ships also engage in foreign trade business).
429,500deadweight tons
TheComanspriarlengagedinthewateaytranort fbukliqddangerouscargoeworldwidcing theshpif liquidchaliadlqpghtfgds trlraxgle phenllqdsdiathh
TheCompanhasawaysaheredtsaeandeniroent-friendlyratinproceureWihexcellent carglscontrol capabity theComanymaintaindawcarlssatefrarelingnofintadaccurateshppinshedlemaneme tmwt thstqirntrqulqatnptltatraprlltre continuuslcslidatetheexistinbinsteritryandactivlxlrewbusinessfdstachiestadyevl
Building a High-End Fleet
Withchemical transportationasitsmastratey,theCmpanyontislexpandsthcapacitfchicaltankefltenga destifrritstrftflst ingPeridtmaytiprtdapacitrabitdestindfreradhicaltankererp operationcresitheft caacityyWandonelchicaltankewithaacityfWwasis achievingfleetrenewalandmaintainingayouthfulfleet.
TheComactilthdt dfrcaraditlihteluhdf constructiplaningof thmpansfltandviorouslyprmtedthefleettachiehih-ndandgreedevelpmntf the endof theReoring Perid, theCmanyhas6 shipsunde construction withacapatyf 1296W,inclding w1W chemical tankrsengaeindmesticadforetraeadfu9KWmthanlualfustainlesstelchical tanker eigntrathsbasistheCmaldfdatnfftueiexpasinldsthistrsgren trasfo with practical actions, and contributes to sustainable development.
CaseStudy
"XT EXPLORATION" Officially Put into Operation
On November 5,2024,the 13,000-DWT duplex stainless steel chemical tanker ^{\ast}\mathsf{x}\mathsf{T} EXPLORATION" departed from Maple Leaf Shipbuildin inaizhuandoffiallywent interatont caridtonsfaraleentsmaidevygefm rea to Chinese Taipei.
As a new generation of green and intelligent high-end stainless steel chemical tankers, ^{\ast}\mathsf{X}\mathsf{T} EXPLORATION" is equipped with basic equipment suchasballast water treatment systemsand aftshaftsealstmeet thecomplancerequirementsofvarious emissnasandwataqdthtlitvgatlityefc gent engineroo,and anintelient informationintgrationlaformWiththecontinuusadditionofmorehighend shps, thefltf thCmayssteadilcingyungerhghr-edandgreenetproidxcelent traprtatoni to global customers.
Expanding Global Reach
International Routes
Domestic Routes
Actively responding to the national strategies of building China into a "Marine Power” and “Shipping Power", as well as the Belt and Road Initiative，theCompanyhasmadesignificantstridesintheinternational shippingsector.Withlong-termstrategicvision andunremittingefforts, the Company has gradually built a perfect transportation network covering the whole world.Now,our ships mainly sail in Northeast Asia, Southeast Asia, the Middle East, the Mediterranean Sea,Northwest Europe，the Indian Ocean,and South America,with main customers including PETROBRAS, SABIC, CARGILL, etc. With the continuous expansion of its foreign tradefleet,the Company significantly enhances itsabilitytomeetthedifferentiatedneeds ofcustomers,effectively satisfies customer demands for different types of goods, transportation distances, and routes,and gradually builds the Xingtong brand in the
The Company continues to strengthen businesses operated for domestic trade, focuses on expandingandstrengtheningthedomesticcoastaltrans portation of liquid cargo hazardous goods, and deeplycultivatesthedomesticshippingmarket. The main customers of the Company include Sinopec, CNOOC,Fujian United Petrochemical, etc.The Company'stransportationroutescover thecoastal areasofmainlandChinaandthemiddleandlowerreachesoftheYangtzeRiverandthePearlRiver, formingatransportationnetworksystemthatcan radiatemajor domesticchemicalindustrialbases such as Bohai Bay,Yangtze River Delta,Pearl River
IStrategy and Culture
{0} Corporate Strategy
In2024,guidbythelt adRodiatindthethFivrnfrWatraprtvelnt,nthefue,th panywilheetthevionedcladestialngtateicproidefricscha steadily advance the 9+2+7° strategic development plan.Wewillcontinuouslyopeninternational shippingroutes,and serve the countriesalngthelt adoaditatihsustanaleismdwewildevlptlballyetiadw knowshpinenprisdvturtthqualtyltf thmaindsurthte a transportation power and a marine power.
Low-Carbon Transformation:Leading heFutureot
Enhanced Defense Line:Safeguardin #號
United Cooperation Building Sustainabl
SharedResponsibility: eekingCollaborativeGrowth ndMutualPr
I Milestones
·The shipbuilding contracts were signed for two 25,900-DWT methanol dual-fuel stainlesssteelchemicaltankers. ·The first ESG Report was released. ·The total freight volume of the Company exceeded 11 million tons.
·The Company formed a strategic cooperation with C&D to explore new logistics modelsforinternationalliquidhazardous goods supply chain.
·The total capacity of the Company exceeded420KDWT.
IHonors and Achievements in 2024 I
{0}
AAAALogisticsEnterprise
Awarding Authority:
China Federation of Logistics&Purchasing
(CFLP)
I Customer Recognition and Qualification Certification /
{0} Customer Recognition
Qualification Certification
TheCmtltlatltrlata environmetal prttimanageent st,tains tequaliicaionandceicationsrequirebrvat athritad ficationscitiandcontiustrngthnandeanesaftyandenrontalmaaementstemstreicl.
Business Qualificatio
Compliance Leadership: Ensuring Stable and Long-term Development
Xingtong Shipping strictly adheres to the governance requirements for listed companies. Upholding the business philosophy of “integrity, standardization, and win-win cooperation", the Company has established and continuously improved a modern corporate governance system that is scientific, standardized, well-balanced and efficient. This helps solidify the Company's development foundation, actively practice the philosophy of sustainable development, and promote the high-quality development of the Company.
Governance for Sustainable Development
Governance System for Sustainable Development
Toalignwiththansstraticdiretiormtstainabdvelpmetenurthintificadratiolf development ansandstrateicecisionsandcomrehensivelynhancsutainabledevelomentcapacity,theComanys formulatedtheESGManagementSystemandestablishedasustainabledevelopment govenanceframeworkcovering“de sion-making,managment andmlementationtounifythleadershp,dcisionmaking,andmlmentationfGwr.
The Board of Directors,the leadership and decision-making body for ESG work, is responsible for determiningtheCompany'ssustainabledevelopment strategy and other overarching tasks.An ESG Working Group under theBoard of Directors,asa research and guidancebodyforESG work,is responsibleforformulating ESG work guidelines and plans, and providing support to the Board of Directors.The Company's departments and subsidiaries,serving as the executing bodiesfor ESGwork,aremainlyresponsiblefor specificimplementation work,such asfulfilling departmental responsibilitiesin the implementation of theESG strategy,and collecting/reporting ESG information.
In 2024, the Company organized ESG-related training to enhance employees' understanding of ESG concepts and relevant practice abities.External experts wereinvited togive in-depthlectures on coreESG elements, international standardsbestindustrypractices,aswellastheopportunitiesandchallengesfacingESGwork.
Sustainable Development Concepts and Goals
Our social repnsibityplyaerestoconduting usessinarepsiblethical andustanable maner mitig long-termismandachievingsustainabledevelopment.
Focusing ontheSustainableDevelopment Goals SDGs)of the United Nations, weare activelyengaged inESG practicesto pr motesustainabledevelopmentandstrivetoachieveaharmoniouswin-wincooerationbetweenbusinessandsocialalue.
| 9IANDUSRYSNOVATON | TheCompanyhas activelyinvestedinR&Dtopromotetheships'digital The Company strengthens strategic cooperation with industry partners, jointly streinrann the supply chain, and supports sustainable economic development. | Leading a New Chapter In Shipping Enhansement of Industry Joint Efforts for Innovative Development |
| 日 | TheCompanyprovidesequal career development opportunities and imple- ments a non-geographical and non-sexist recruitment and employment policy to ensure that every employee enjoys a fairworking environment andpromo- tion opportunities. | Protection of Employees Rights and Interests Employee Care and Support |
| 11SNSICOM 合田用亩 R | The Company actively organizes its employees to participate in community environmental protection activities such as beach cleanups, improve the com- munity's environmental quality and contribute to the community's sustainable development. | Social Welfare Activities |
| ANDPROOUCTION Q8 | The Company implements a green procurement policy, prioritizes the se- lectionof environmentallyfriendlyand efficientmaterialsandservices,and drives the upstream and downstream of the supply chain to jointlypractice responsible consumption and production concepts. | Recycling of Materials Sustainable Supply Chains |
| The Company adopts advanced energy-saving technologies and equipment to optimize sh nbational climate policy trends,participates in relevant training and seminars, and ensures that business operations comply with international emissionreductionrequirements; | Response to Climate Change | |
| 14 BELOWATER | The Company takesmeasures suchas route optimization,enhanced ballast watermanagement,and noisereductionduringnavigationtoeffectively protectmarine ecosystems,maintainunderwaterbiodiversity,and actively contribute tomarine protection efforts. | Protectionof Ecosystem and Biodiversity |
| 15 OWLAN | The Company actively promotes the use of environmentally friendly packag- ingmaterials,implements green officepractices,and conducts environmental activities such as tree planting to contribute to the protection of terrestrial ecosystems and biodiversity. | Improvement of Resource Efficiency Protection of Ecosystem and Biodiversity |
| A | establishes a peaceful, just, and strong business environment. | |
| 17 PARTHESBAS | theetestrarattat and school-enterprise exchange activities, and establishes supply chain partnerships, to jointly promote the sustainable development of the shipping industry anddrivewin-wincooperationwitha moreopen attitude. | Joint Promotion of Indus- try Development Sustainable Supply Chains |
Communication with Stakeholders
The Companyiscommited toimproving thelevelof corporateresponsibitygovernance and responsibity competitiveness, "teling thengtong storywel deelping theXingtong brand ncreasing thepopulartyofXingtong, andcreatingXingtong valueThomanyalactivelmmnicatewththegvemntregulatorbdishareolerustmersndth stakeholerndenhacethtraparencfifmatidislureandhandlifclarealiethemnsstan development of enterprises and society.
| Stakeholders | Main Topics of Concern | Company Respons |
| Government/regulatory agencies | · Lawful tax payment · Employment promotion · Compliant operations | erength andrepoing wthgo · Publish regular reports and corporate ESG reports · Fulfl tax obligations |
| Shareholders | · Compliant operations · Integrity management · Risk management and internal control · Development strategy | · Disclose relevant information · Convene a general meeting of shareholders · Publish regular reports and corporate ESG reports |
| 3 Employees | · Career development · Crew care | ·Hold communication meetings such as the Employ- · Offer competitive remuneration and benefits · Provide diversified employee training · Build a "home” for the crew |
| Communities | ·Contribution to communities | ·Donatetoeducationdevelopmentfunds · Participate in community public welfare activities |
| Environment | ·Energy conservation and carbon reduction · Waste discharges · Protection of marine ecosystems | · Enhance Environmental Management · Practice energy conservation and emission reduction · Protect marine ecosystems · Develop green ships |
| (O) Customers | · Safe and efficient logistics services · Top-tier customer service | · Enhance transport capacity · Deliver safe and efcient transportation services · Provide green and low-carbon transportation services |
| Suppliers | ·Fair, just, and open procurement | · Offer fair opportunities · Conduct responsible procurement |
| Industry organizations | ·Contribution to industry development | · Support industry exchanges · Participate in industry forums and meetings |
| 8 Media | ·Transparent communication | ·及Timely release reports and information |
Materiality Analysis
With reference to the requirements of relevant standards and guidelinessuch as ShanghaiStock Exchange Self-Regulator Guidelines for ListedComaniesNo.14 -SustainabityReport for Trial Imlementation)hereinafter refered toas“theGuidelines"andincinatinwiththecharacteristisoftheindstrynwhicthCpanyperatingandthebusinesreali of theComanyecmprehnivelyidntifyanevalutematerialtpisthathvesinificantactnandaref concerntoitsstakeholersthroughquestionnairesurveysofstakeholdersindustryresearchandothermeans.
Material Topic Analysis Process
Analyzing theCompany's activities and businessrelationships
Consider national policies, industry trends, and company strategies,comprehensively analyze the external environment and internal business activities,and identify the mainstakeholders.
Establishing a list of material issues
Use the 21topics setforth in the Guideline as the basis,and combinerelevant standards and guidelines such as GRI and SDGs,industry characteristics,and expert recommendations to form a list of material topics.
Conducting a stakeholdersurvey
Conduct a stakeholderquestionnaire tounderstand theviews of stakeholdersin conjunction with the assessment requirements related to impact materiality and financial materiality.
Assessingandconfirming thematerialityoftopics
Based on the results of the stakeholder survey, and in conjunction with our internal leadershipassessmentand expert opinion,we assessed the materialityof the topics in terms of “financial materiality” and “impact materiality".
Reporting topics
Based on the assessment of the materiality of the topics,a matrix of material topics was formed.
Notes:
Standardization of Corporate Governance
Governance through the General Meeting of Shareholders, Board of Directors, and Board of Supervisors
TheCompanynstrictcmliancewiththerequirementof thompanawof theelesepublifChinathecurit Lawof theplesepublicfChnatheGoveanceodeforistdCompaniesandotherlwsandreulationsassta lishedarpratvencestrtunsistif theneratifharhlardfretrardf visors, and the management. The Company is commited to forming a governance mechanism with scientic decision-making. efficientexecution,andstrong supervision,inordertoenhancegovernanceeffectiveness.
Organizational Structure
品
GeneralMeetingofShareholders
InstrictcmlincewththequiretsofthulGveringthistinfStocksonthhanghatockExchangethArif AssciatifnpinLtrfAsciattfPrurertlf holders ofXingtong Shiping Co, L, the panycovees and hols theGeneralMtig ofSharehders and trets a sha holdesqualTGnrltinfhahltsidnoinltenurettlharl especiallyminorityshareholders,canenjoy equal status andrights.
During the ReportingPeriod
the Company held a total of 5 meetings of the General Meetings of Shareholders, and reviewed and approved 19 proposals at these mtings.
YM
Board of Directors
TheBoardofDirectorsof thepanyassetuptheStrateyCmitee,theAuditCommite, theNminationCmmitee,the munerationandAssment Cmitte,and theSafetyandEnrmentalrotectionCitte toperfomtheiutiesnaccordan withtheprovisonsof theArticsofAciatiof theComanand thleentinloftheesecialzedcoittp videtheBardfDirectorswithrationaliedproposalsandtoimrovetheoperationaleffciencyof theBoardofDiretor.
During theReportingPeriod
the Company convened a total of 10 meetings of the Board of Directors, and reviewed and approved 45 proposals at these meetings.
the company held 3 meetings of the Strategy Committe, 4 meetings of the Audit Committee 1 meting of the Nomination Committee, and 2 meetings of the Remuneration and Assessment Committee.
The CompanyiniwiththeMareforthedinistratioof penet Directrsof Listed anihasformlated thW Sytemfnttf thnthpdtgivfullattactrlfdnt diret rategovernanceandenhancethecientifityandprofessonalimofthedecision-makingbytheBoardofDirector.
As at the end of the ReportingPeriod
| Inde- pendent directors (person) | Non-inde- pendent directors (person) | Whether the independent director(s) serves as chair- manofthecommittee | |
| Strategy Committee | 1 | 2 | No |
| Audit Committee | 2 | 1 | Yes |
| Nominatin Com- | 2 | 1 | Yes |
| RemunerationandtAes- | 2 | 1 | Yes |
| Safety and Environ- mental Protection Committee | 1 | 2 | No |
the Company'sBoard ofDirectors consisted of 11 directors, of whom 4 were independent directors and 7 werenon-independentdirectors,with independent directors accounting for 36.36%.
The Comanyataches great mprtane to the diversityof theBoadf Directors, andinlse alment with the lng-temdeve opmentcarrtcrehniandtisidratinnthseltionndrrutntfdirtorWus balancfarftrhnrfiatlagrdstibd team with a reasonable structure and complementary strengths.
The existing dretors of th mpayhaverchanddiversid professionalbackgrounds, coverinfissuchascorpratemanae ment finaceand atinglianeandrfouinstryxrincethedailerationnajdeisma prfttdif thqflataanledift ti provievalaleopinnandsuestionwithbthrationaltyandscintitynthanybinssdeisionwhchstrl prootethanyteadyrgrstwardstandardizationndefiencanelthCmanyaccuratlgrath ment opportunities in the complex and volatile market environment to achieve sustainable development goals.
品
BoardofSupervisors
TheBoardofSupervisors,following theCompanyLawof thePeople's Republic of China,the Articles of Association,the Rules of Procedure of the Board of Supervisors of Xingtong Shipping Co., Ltd., and other applicable laws, regulations, and rules, conscientiously performs its supervisory duties to effectively safeguard the interests of the Company and the rights and interests of shareholders.
Management of Remuneration for Directors, Supervisors,andotherOfficers
TheCompanyfocuseson thetransparencyof theremunerationof directors,supervisors,and other officers.In accordance with the Governance Code for Listed Companies and other applicable laws, regulations, and the Company's operation realities, the Company has formulated and published the Management System for the Remuneration of Directors,Supervisors,and Officers.This system clarifies theremunerationstandardsandrelatedregulationsforthe payment of remuneration of directors, supervisors, and officers.It aims to fully motivate the directors, supervisors, and officers of the Company，enhance their cohesion，embody the fair principle of “aligning responsibilities,risks and interests"，maximize the interests of shareholders,and lay a solidfoundationfortheCompany’s long-term and stable development.
As at the end of the ReportingPeriod
As of the end of the Reporting Period, the Company had 3 supervisors, including 1 employee supervisor, and 1 female supervisor who accounts for 33.33% of the total.
IN 2024
the Company convened a total of 7 meetings of theBoardofSupervisorstoreview 26 proposals.
Protection of Investors' Rights and Interests
(i Investor Relations Management
Incompliancewithapplicablelawsandregulations,theCompany has formulated the Investor Relations Management System of Xingtong Shipping Co., Ltd., aiming to establish a longtermcommunicationmechanismbetween theCompanyand its investors,enhance information transparency,and effectively safeguard the legitimate rights and interests of investors.
TheCompanyactivelymaintainsvariouscommunication channels, such as holding performance briefings, receiving investors for on-site research, answering investor hotlines, andreacting on SSE E-Interactive,to actively communicate withinvestors,address concerns raised byinvestors,and increase investorconfidence inthe Company'sfuture develop ment prospects and therecognition of the Company's values.
In2024,theCompanyreceivedcomprehensiverecognition from a wide range of investors for its outstanding performance in investorrelationsmanagement,winning three major awards:“Top300 Most PopularListed Companies"on the Tonghuashun Annual List of Listed Companies, the“Investor Relations Elite Award"，and the“Top 100 Most Popular Secretaries".
During the Reporting Period
the Company held a total of 115 perfor mancebriefings and investorcommunication meetings, and made 17 replies on the SSE E-Interactive Platform, with a 100% response rate toinvestors’questions, covering a total of 27 brokers'research reports.
(i Information Disclosure
The Company standardizes the information disclosure process,formulates the Information Disclosure Management System of Xingtong Shipping Co., Ltd., strengthens the quality of information disclosure,ensures the truthfulness,accuracy,completeness,fairness and timeliness of information disclosure, and protects investors'right to know. Moreover, the Company attachesimportance to the confidentialityof unpublished information，formulates the Insider Information and Confidentiality Management System of Xingtong Shipping Co., Ltd., and prevents insider trading.
In 2024,Fujian Association for Public Companies issued the Notice on the Publication of the 2023-2024 Annual Investor Relations Management Evaluation Results for Listed Companies in Fujian.Xingtong Shipping was awarded the highest \"A\" rating for its high-quality information disclosure, standardized corporate governance，andexcellent investor relations management.Additionally, the Company received a “B” rating in the annual evaluation of information disclosure by SSE from 2023 to 2024.
Returns to Shareholders
Onthebasisof soundoperations,theCmpanycoordinatesandbalancesthesustainabledevelopmentof theenterpriseand sharehliitwsttadniidili theilntatfcahdiidndhareacandtheierifitumeurthpanyridharl erswith-tmadstaettretathefginfestrdnurethaestrial small and medium-sized investors) can share in the development achievements of the Company.
During the Reporting Perid, in active response to the Shanghai Stock Exchange's Proposal for theSpecial Actionof “mrovng QualitycreaingEfienyandFocuinnetusormanieListdnthehanghaitockExchange,theC formulated the“roving Quality,creasing Eficiency anFocusing nRetus"Actionanand focuseonaspcts uh asbusinesprations shareoletuahdiviendshareuybackmly stock wershpanand gre velopmenthiscntiuuslprmtestheCompanyshigh-qualitdeeloment,nhances invstorretus and ncreas t Companysetent alverthast threyears,thcashdividndsoftheCmayhasteadlnreased,with mulative dividend of RMB 193 million over three years.
| 2024 | ||
| During theReportingPeriod KeyPerformance | ||
| Cash Dividend per Share Total Cash Dividend (Tax Inclusive) | Proportion toNetProfitAttrib- utabletoShareholdersof the | |
| (yuan) | (RMB million) | Listed Company (%) |
| 2024 0.20 | 73.26 | 20.91 |
| 2023 0.15 | 89.74 | 35.58 |
| 2022 0.15 | 30 | 14.55 |
Enhancement of the Risk Defense Line
TheComancotiuslrovesit rismanagment systm and enhanceits abitytprevent and resle rsk inaccorda withtheGvncefristdCmanithBasicStadardfrEntprisnlontrandthlevantreulat daly operations, theCompanyregularly conductsrisk asments and ssues thLgalRisk and ComlianceRiskMangemet e port.Thishelpthemangement temof theCmanyuderstand therisk situationtheCompanyfaceinatimelandcomprehe sivemanner andenablethmtake scintiandreasnbledecisions,therbenuring thesstainable andstabledevlme of the Company.
Enhancing Risk Management
The Compayinsistsnintgrating threquirements frismaagemnt intenterprismanagment andbusnessprocessead establishes thre lnsof dfese forisk managent.Whnassing ris,theCmpanypays atention tobthinteal ad tealfactullizfrsdpratieftistratginuetd riskurinthratiressthhdienenaenguustrevfore clients ul, an dstilt evalatio taytpreeilidentiyarisrsrelatdtits p provides afoundationforsubsequent riskassessments and responses,and ensures stableoperations.
(1) Tax Management
TheComantritlliwthelatxdrgulatiestabihintlcntrlpfanae fiestaatilstardiargdgitintht prceinistlaccuratanlinacordaeththmanaxanelnthystmha aherettaaxaraehtaenptati to thenationalfiscal and taxrevenue.
2024ttftldttfialrnl taxlaws"of Singaporetoraisetaxrisk awareness across all departments.
In2024,tanystapantstotaldMionurngtheriPeridXinthpingandCwe ed“2023TaxCredit Rating A, andXingtong Shippingwas granted withhonrs suchas2024Tp100PrivatenterpriswthTaxPay ments (with Tax Payments Exceeding RMB 100 Million)by Quanzhou MunicipalPeople's Government.
(2)Managementof Related Transactions
The Comany stritlycmlis withtherlevant provisionsf theArticlsofAsciationand theManagement SstemforCnetd Trasactiofnghfutderatpedditodiugor tranactiosstritlylntstsystfaidfvtiote ranctionandifullatotrlf dent directors to safeguard the legitimate rights and interests of the Company and its shareholders.
Development of Risk Management Culture
Focusinriaanttmnyfearisringemetrinngefststhrimagnt and establshes along-temmechanismfor risk management 2024,the Company organized training activities suchasSharing of Typical SanctionCass,ntepretationand Analsisof thRevionof thewCmpanyw, and“ntgrity, Cmliance, and tional Dispute Resolution",to enhance employees'awareness and ability to prevent risks.
Improvement of Internal Control Systems
TheCompanyatachshighrtancetointeral control systems, andcontiuslymrves theCmpanysinteal contrlmane mentsystacordaewthalialwandreulatiouhastasicStandardrEnprilCntr Companyflatdandrevidmanagemnt stmsatheorpratelandfusedoenhacinntealditui tfurthestththdatfeaaratlfnaudtstd mentation of the Company's strategy.
The Compan inteal control management structurecmosedof theAudit Commiteeand theInteal uditDepartment, which jointlyconduct cmrehenivuperisionandojctieevalatioof theCmpansintealcontrmangementworkadenreth effectieperationf theintlonrystmprevent rsknprationmanagemet and prte theachvemntf n control objectives.
n2024,thacctifmcntdneluatfthanalessfthmantonrstmthffectivs of intenal controlperations, andother aspets, and isu the4teal Cntroldit Reprt confiming that theCmpama tainedeffectiveinternalcontrolsinall majorareas.
Compliance and Business Ethics
Compliance Management
The Company ataches great importance tocompliance management.We formulate systems such as theContract Management SystmandthCaeMangementstmtandardiontractmanametapreentnadresschanismdn coplanceincomlex inteational environments.Bymproving thecompliance andlgal riskreporing mechanisms,theCmay preventstrthiltititttrt imacyandrostnsof theCmpayhgaandRisConrolpaet srepnsibefrdeelpinglementinan trigsatilirnnadpibrlatii measurelddieetraactiigadrrihAitidi uating sanction compliance.
The Companyhasdeeplymplantedanti-moneylaundering and sanction compliancereviewintotheKYCcooperationbackground check prcedure,andcontiusrovesthecmliance systmwthalballiaceperpectiuring thcolaorati vestentthCmpafulluitteratrnntratofilinrialstthStatAnistraonfMrkela andformalyobtainedtheNoticeofAceptanceofAntimonpolyReviewfOperatorConcentrationtenurethattheCompanym plies with the requirements of fair competition in the process of during the cooperation process.
In 2024,the Company did not experience any significant illegal orregulatory violations
Compliance Review Process
Prior Prevention
TheresponsibledepartmentcollaborateswiththeLegal Departmentand theRiskControl Departmenttoconductalegalandcompliancereviewofspecificmatters from the perspectives of laws and regulations,regulatory requirements, company policies,and procedural legitimacy. The project willbe submitted to the managementforfurtherdecision-making onlyaftertherelevant departmentshaveissued anunqualifiedopinionthat it is “l(fā)egally compliant, feasible and procedurally proper".
In-process Control
On the one hand, the responsible department tracks the progress of the project and,if risksor new compliancereview requirementsariseduring execution,promptly informs theLegalDepartmentandtheRisk Control Departmentforintervention.On the other hand，monitoring is strengthened to ensure theresponsible department executes inalegalandcompliantmannerandadheres to the internal control systems.
Post Assessment and EffectivenessEvaluation
The overall status of the project is supervised and evaluated, with corrective suggestions providedforanyviolations ofinternalcontrolrequirements or weak links in compliance management, ultimately forming a single compliance review report.
Business Ethics
InstritcoliancewithlawsandregulationssuchastheAntUnfairCompetionawof thelesRepublicofChinaand theAn tiMonopolwof thPelesepublicofChinandtheAntoneyLanderingLawfthelRepublifChnatheCm nyabidbytreqitsfbsthidintgrithlstherniffaetrnfrmnga actitiethmmattdrhtftutratrnratdarat documentsttheStateAdmiisrationforMaktRegulationinadancewiththelwanreglationandhaofillytaid theNoticeofAeptanceofAntimonpolyReviwofperatorConcentrationtoensurethatheCompanycomplieswiththerequre ments of fair competition during the cooperation process.
TheComarstritreritstthtftiirat requiremntsintmloedalornmandenhaethesueiionandmanagementfkpronetsafguardth Companysaet seurityandpertionlordeaddiothayestablhintritylaemajrntractsande thefainsandtraparfprrt actibrirurtavalistaddd menting strict supervision mechanisms.
In 2024
noeconomiclosses duetolegal actionsrelated tobribery,embezlement,orcorruptionoccurred in the Company.
Low-Carbon Transformation: Leading the Future of Shipping
Enhanced Defense Line:Safequarding theSafety of Shipping
United Cooperation: Building Sustainable DevelopmentTogether
onsibility Seeking CollaborativeGrowth
Xingtong Shipping strictly adheres to the relevant environmental protection regulations, such as the InternationalConventionforthePrevention ofPollutionfromShipsreleasedbyInternational Maritime Organization (IMO), and leverages energy-saving and low-carbon technologies and other innovative measures to minimize negative impacts on the environmental ecosystem, thus contributing to the development of green shipping and fully safeguarding marine ecology.
Response to Climate Change
With the intensifying global climate change, the international community's requirementsforreducinggreenhousegas emissions arebecoming increasingly stringent.As one of the major sources of carbon emissions, the shipping industry has to assume the responsibility for emissions reduction.The Companyfollows therelevantrulessetbytheInternationalMaritime Organization (IMO) and actively responds to the“carbon peaking and carbon neutrality" policy of China. By optimizing ship design and improving energy efficiency, the Company is committed to reducing greenhouse gas emissions and promoting the green, low-carbon development of the shipping industry.
Governance
TheCompanfulatandilementstheEneryConerationandmisionRedtionMangemetProcedurencorporaten ergy conseationand emissonreductionintdaly peration andmanagement and continuuslymproves energy conseatiand emisionrdctionthroughreularrevwandcontiuusrovemetastoprmtegreenand-carbonevelpmnth Companys GWrkin Groucoordinatetheplanning and ilementationf stratgiestoaddrescliatechangeestablh greenandlcarbent pthactilprtthentifesang disiedtima promotes the harmonious coexistence of the enterprise and the environment.
Strategy
Weidentifythe trasfotionlriskhysicalrisanopprunitsthat orationandvalhainmafaeint ediumndlgraandthtetitnatthdeletrfthhnnst the operation realities of the Company.
| Risk Type | Description ofRisks MandatoryRegulationandPricingMechanismforGreen- | Financial Impact | Impact tion | Chain Link Impacted | Countermeasures | |
| Trans- forma- tion Risks | Policy | houseGasEmissionsfromShips:The2023IMOStrategy onReduction ofGHGEmissions fromShips sets emission reductiontargetsrequiringa40%reductioninemission in- tensityby2030anda70%reductionintotalemissionsby 2040(witha target of 80%).Thismeans that future regu- over,theEUEmissionsTradingSystem（EU ETS)willcome intoeffectfortheshipping industry,withthepaymentra tio increasing eachyear:40% in 2024,70% in2025,and odicallyratetheannualoperationalCarbonIntensityIndex (Cll)rating of ships and that therating be continuously re- duced.InNovember2022,theMaritimeSafetyAdministra- tionof thePeople'sRepublicof China issued theMeasures fortheManagementofEnergyConsumptionDataand CarbonIntensity of Ships,whichrequire ships to record andreportenergyconsumptiondata onaregularbasis, and toregularly assess the annual operatingcarbon inten- sityratingof ships oninternationalvoyages.Asregulations tighten further, ships that do not meet EEXl and Cll re- quirementswillneedadditionalinvestmentsforinspec- | increse | Short- Term | l operations complywiththelatest emissionreduction requirements; Invite externalagenciesto conduct Strengthencarbonemission data management andcarbon emission quotamanagement,andcomplete the annualquotasurrenderasre- quired by the'EU ETS. | |
| tions,modifications,and other measures. TheR&Dand applicationof energy-saving technologiesfor shipswillbecomemandatory,includingdirect orindirect costs,technological uncertainty and market acceptance challenges. | increse | Uupstens chase and build low-carbon, envi- | Track the latest technologicaldevel- opments,policy changes,and mar ketacceptance of cleanfuel-pow- ered ships; eratorsandfuelsuppliers,tojointly explore the application_prospectsof clean fuel-powered ships,and pur- | |||
| Market | increse | Effectivly reducefuel consump- tion andalleviate costpressuresby ConversionProceduretoreducethe use of high-priced fuel. | ||||
| tainstakeholderssuchasinvestorsbankscustomersu | increse, revenue dana | Long- | Upstream Operatons stream | Establishcommunicationchannels Before the arrival of extreme weath- er,carry out a comprehensive in- spection ofthe shipsto ensure | ||
| Pihys- Risk | Aciste | as ships, equipment, and cargo. ExtremeWeather Events Increase the Difficultyof Ship affects theirhealth,work efficiency and safety of ship- board operations. | inrease, Damage to fixed | Short- | tion; Integrate | that the water tightness is good thedrainagesystemissmoothand thekey equipment (suchasanchor chains,mooringequipment,and drainage pumps) is in good condi- measures such as detouring or sus- pending ships' operation in port; high-throughput satellite broadbandsystems,CCTV intelli- nentmnaahag tancethysteasenbeardl andabaa intelligentlyanalyzeweathercondi- tionsatsearoactivelyavoidrisks, ensurenavigationalsafety,and build an integratedsmartnavigationsafe- tymanagementplatformfor ships |
| Chrosk | Sea Level Rise Affects Ship Unloading Operations and Berthing inPorts:Sea levelrisewillaffectshipunloading | Long- | and shore bases. Conduct a comprehensive assess- mentof the sealevelriseadapt- abilityof existingports,prioritize portswithstrongadaptablitythat canhandlefuture sealevelrisefor dindain suchas electroniccharts toensure operationalparametersinatime- ymannerbasedonenvironmental factors such as sea level rise and windspeed changes,ensuring safe |
| OpportunityType | Description | Finapscal | ImpactDura- | Countermeasures | ||
| Re- source cificy | ment rof.ship erferetion | TheR&Danddeploymentof thenaseentigtaleinelience antimizeprvotsip scienritical turnaround rates. | Costdecrease andrevenue | Short- and medium-term | Operations Downstream | gase temintantistemlaiteratend upgrade to |
| formation. | Cost reduction | meoutm -ecm | Operations | prove system usage capabilities. | ||
| Enerey | Mednum-and | |||||
| Long-term | ||||||
| Market | de tand sheraian | The manufacturing indus- increasean dmna frasan tation. | Revenue increase | Medium- and long-term | Downstream | Aaei ettra |
| Resie | Diverse layout | The expansion of international routes and clean energy trans- trends'incleanenergy trans- formation. | Meonigme-and | Doperatean | Conduct in-depthresearch on interma- tionalroutesandcleanenergy transpor- expandinginternationalroutes and clean energy transportation business. | |
Impact, Risk and Opportunity Management
In 2024,th Cmanyactivelpnded tothe chalenges posdbylatechangeBased onactual cirumstance,weestablid almateagerishautideahuhdisx ltat ticipationnndstryexchangeetingstcmrehensiveladdelyidentiyptntiallat-relatersintheCmanr tionsBadntaatioretadtetltrisanpiidnthed risourt ftirraiftldriei evaluated based on internal questionnaires and expert opinions.
Indicators and Goals
TheComanadnratialindargslevatstrulaqirentstiu andmangegreenhouegasmisionsfrmshipandotherindcatorstoensurethefulmlementationfemissionredutionf forts.
Promotion of Low-Carbon Transformation
Withtheaccelerationof globalclimategovenancetheEropeanUnionpushedtheemisionstradingsystemE-Toffcially coverthe shipping industryonJanua12024.sanmissionreductiontoolpropedbytheEropeanUiontocbat climatechangethsystmisthewrd's arest traational miostradn syst,whchrequirshincmani payaproportionatesharef carbonallwancebasedonverifie emissionsand thisproprtionwirseyearnear.
Inthefacof thipoliychangeshppingcmanieedaccuratlgrasthkeyointsfcmliacuhsar emissionacctiqtamtandnitrinrandexlrethathfisetinuhf ciencyptimizationandaltativfualicationoretdeplndrstandandefctivellmt theginall requiremetsdinintatnlses,tCmatatheinitiatipiatncablituyf cial rainingngreenshppinandalwithintational greshipping rlsastond ttheglalclatatn withpractictioaidros-bordeeratinrisandenurethmothratinfinttiolsins the Company purchased atotal of 3o0 EU allowances (EUAs) and used 688 allowances for contract perfomance this yer.
Actively Understanding Carbon Policies and Arranging for Carbon Compliance
Bernhard Schulte Shanghai ETS Exchange Seminar:InJanuary 2024,the Company participated in the BerhardSchulteShanghaiTSExchangeSeminar.Attheseminarexpertsprovideddetailedinterpretationsf thelatestregulatoryrequirementsof theEUETSandEUMRV,andclarifiedthecomplianceresponsibitiesof shipping companiesatdifferent stagesincludingkeytimenodessuchasthetimetosubmitmonitoringplans and emissionreports and topayforquotaThe seminaralsoexplained operational issuessuchashowshipping companiescanidentify and determine theiradministrativemanagement bodies and howto applyforaMaritime Operator Holding Account (MOHA).
Interpretation andTraining ofEU Green Shipping Policy:AnotherEU green shipping policy,FuelEU Maritime,willbeoffciallyimlementedTbeterunderstandthecompliancemechanismofFuelUMaritimeandas sisttheComanynpratinsteadilyundrthewregulatinavidingpotentialrisndbetrcontrollin fuel costs,capital expenditures,and compliance costs,the Legal and Risk Control Department helda“FueEU Maritime”awareness session in December 2024.The Securities Department,the Investment Management Department,theAdministrativeDepartment,and theInternationalBusinessCenterparticipated inthistraining.
Environmental Compliance Management
Duringthvigatfthhsgudoxidgxidnuatdfr combustifflddatstetiiltatda during thhperatollafethalthfthmalgicaletThmaisfullwareof tptentl ardsandtfestrillttrlaplatuth pollute the marine water or cause ecological damage.
Inadioalqdardgstrartatishetlrisanofarddtra tationthtuequlradtultltalafth ecsystemadestrthelnnirntfmailutalptntialasiniiantctthedalfast residents andlcalmc actiitherefore,thCayalwaspriritie saftyandnroental prtetion,actil plementinerifstritandeftisaftyadenirntlrtetionmaureheinldenhaincrsaf envrtalprttitriltidntaelqtandelpehnge pnseplateurthafeeratfhetilnnrtalltrisdstriache coexistencebetweencorporatedevelopment andecologicalprotection.
During the Reporting Period
The Company strictly adheres to the Regulation of the People's Republicof ChinaonthePreventionandControlofPollutionof theMarine EnvironmentbyShips and Their Related OperationalActivities,the InternationalConventionforthePreventionofPollutionfromShips(MARPOL), and other applicable laws, regulations and international conventions.TheCompanyis committed tostandardizing the environmental management of shipoperations,ensuring that all shipactivities comply withenvironmental protectionrequirements,effectivelypreventing and reducing shippollutionof themarine environment,and maintaining the balance of the marine ecosystem.
no major pollution accidents or significant negative environmental impacts occurred from the ships operated by the Company.
Governance
EnvironmentalManagementSystem CertificationCertificate
Following the environmentalprotectionpolicy of“prioritizing prevention and continuous improvement”, the Company has established rules such as the Environmental Protection Management Procedures, the Instructions for Preventing Air Pollution from Ships,the Instructions for Preventing Domestic Sewage Pollution and the Instructions for Preventing BallastWaterPollutionfromShips toensure thecomplianceofenvironmentalprotectionmeasures.Byfurther standardizing energy-saving and emission-reduction behaviors, reducing energy consumption and pollutant emissions,promoting the development of green shipping,and using new technologies and practices in the shipping industry to continuously improve environmental managementperformance,the Company aims toachievetheexpectedenvironmentalperformancetargetsinvarious ship operations.
Asof theend of theReportingPeriod
the Company has passed ISO 14001 certification.
The Safetyand EnvironmentalProtection Cmmiteeunder the oard of Directorsisresponsible foruperising and managing th safetyandeniroentalprottionworkof thCanyThGenralManagersthefitponsilpersonfreniromentala agement andisreonsibeforenuring that thenvironmentalmanagement systemisinteratedintdalyperationsandusss development.
OrganizationalChartforEnvironmentalManage ment
General Manager
Approve the Company'senvironmental protection plans, energy-savingplans andmeasures
EngineDepartment
Develop environmental protectionplans, as well as energy-saving plans and measures, and’ conduct comprehensive reviews every sixmonths
·Guideandreview the energy-savingandemissionreduction by ships
·Monitor the engine room's anti-pollution, energy-saving and emissionreductionmeasures
·Assist ships in handling technical and equipment issues that arisein anti-pollution efforts
Marine Department
·Develop the Company's environmental protectionplans and shippollution accidentpreventionmeasures ·Investigate environmental risk factors on ships · Guide and inspect anti-pollution work of ships ·Monitor and analyze the energy-saving and emission-reduction during shipnavigation and cargo-related operations ·Report anti-pollution deficiencies and pollution incidents on board ships
Ships
·Implementanti-pollution and energy-savingemission-reductionmeasures ·Regularly conduct energy-saving.and emission-reductionreviews andimplementimprovements ·Report shippollution hazards, emergencies, andaccidents
Safety and QualityDepartment
·InvestigateenvironmentalriskfactorswithintheCompany's premises Summarize environmental riskfactorsandconductacomprehensiveevaluationtoidentifysignificantenvironmentalrisks
The Company organizes environmental protection training activitiesfromtime totime,covering awide rangeoftopics suchasmeasuresforpollutionprevention, and technologies for energy conservation and emissionreduction.Thetrainingisconductedbyinvited industry experts, effectively enhancing the environmentalawarenessandprofessionalskillsoftheCompany'smanagementandcrewmembers.
| Rissop- portunities | DescriptionofRisks/Opportunities | Finapcial | Durpaictn | Value ChainLink | Countermeasures |
| Policy Risk | Withtheaasn theworldareintensifyingtheirregulations onmaritime environmental protection.Ship inspectionshavebecomemorefrequent,and environmentalrequirementsandstandards farebmi serhtny y andthepotentialliabilityassociatedwith theseregulations.Anyfailureto complywith suchenvironmental compliancerequirements maycausetheCompanytofaceinternational t access of the Company. | Cost increase | anshonedi- um-term | Operations | Strengthen theinternalenvironmental management system,increase invest- mentin environmentalprotection fa- cilities,upgrade existing environmental protectionequipment,andensure that hinttisthmref mental audits; Enhance the dailymaintenance and managementofenvironmentalprotec- tionfacilitiestoreducetheriskof en- faientalilatioscausedbyfacity |
| Legal Risk | Liquid hazardous materials are highly pollut- ing.Anyleakage(if occurs)due toaccidents maypollute themarine environment,violate e Mertis and ranizatieneasidlelaeagtoethe marine ecology. | Cost increase | Short- | Operations | Establish a sound environmental man- agement system,clarify the environ- mentalprotection organizational struc- tureandresponsibilities,andsupervise theimplementationofenvironmental protection regulations;organize regu- amnmaans tarmpultetompreenive eiromn regularly conduct emergency drills to improveemployees'abilitytorespond toemergenciesandcoordinateindeal- |
| opprtuoni- ties | Description of Opportunities | Financial Impact | Impact Duration | Value Chain Link Impacted | ing with incidents. Countermeasures |
| Market Op- portunities | With the increasing global emphasis on environmental protection,customers are payingmore attention to the environmen- tal ema sn oanes tt meet environmental protection standards.By improving environmental performance,the Company can gain a larger market share and achieve awin-winresult in terms of green transformation and market competitiveness. | Revenue increase | Long- term | Operations Downstream | Introduce advanced environmental pro- tection equipment and technologies to reduce environmentalpollution during operations;Regularly monitor and eval- Undeaonrentl rotetonaed lems in a timely manner; Actively participate in international en- vironmentalprotection-relatedexhibi- tions and activities to expand the Com- pany's influence and visibility. |
Impact, Risk and Opportunity Management
Risk Management Process
Risk Identification
·Systematically check all pollution sources on ships eachyear(such as NOX,SOX,waste，VOC，tanker cleaning water,ballast water,sewage, anti-fouling paint, and various chemical tanker cleaning agents) toidentifyenvironmentalhazard factors.
Risk Response
Risk Assessment
·Analyzetheoperation of thesafety andqualitymanagementsystem (SQMS) each quarter to identify weaknesses and propose improvement suggestions.
·ArrangetheSafetyand Quality Department to organizetheevaluationofidentifiedenvironmentalfactors anddetermine significant environmentalfactors.
Risk Monitoring
·Conduct SQMS operational analysis every quarter, identify weaknesses, and propose improvement suggestions. ·Track andverify the corrective actions and improvement plans to ensureproblems are effectively resolved and risks are effectively controlled.
Emergency Plans and Drills
The CompanyhasfoulatedtheShpandShoreEmergencyResponsePrcedureandothermergencymanualswhichclerl definetheentireprocess fromemergencycontact andemergencyresponsetoemergencyactionwhenemergenciesoccuron boardDetaldemergencyreponseplanshavebeendevelopedncludingthemergencyResonsePlanforOceanPoltin fromShips,theEmergencyResponsePlanforOilSpifrmhipsandtheShipWasteManagementlantoensurerapidand efetive actionsinall mergecysituatiosSharerequiredtondct scheduld traininganddrils tenurethat eachc member is familiar with emergency response procedures and their responsibilities.
Inadiotulrnhthreeeietequasttft oftheemergencyreponseplanandthemothnessof ship-t-shorecommnicationsstrengthentheteamsabitytcllab rate and coordinate, and improve its crisis management efficiency.
