Stock code: 603565
Environmental, Social
and Governance Report
Shanghai Zhonggu Logistics Co., Ltd.
Table of Contents
Waste Gas Management 39
Safe Shipping 40
Preface 3 Create Customer Value 42
About This Report 3 Provide Excellent Service 43
Message from the Chairman 4 Digital Shipping Transformation 50
Zhonggu Logistics at a Glance 6 Strengthen Supply Chain Management 56
Company Profile 6 Create a Harmonious Community 58
Cultural Values 8 Promote Diversity and Equality 59
Milestone and Glories 9 Talent Development 62
Return to Shareholders 11 Employee Care 64
Key Performance 12 Support Public Welfare Undertakings 70
Annual Features 13 Start a Sustainable Business 72
A New Green Transport Mode of "Shipping Loose Cargo via Containers" 13 Corporate Governance 73
Strengthen ESG Governance 18 Compliance Operation 74
ESG Governance System 19 Business Ethics 75
Response to SDGs 23 Risk Management 76
Green Shipping 25 Appendix 78
Climate and Energy 26 GRI index 78
Water Resource Management 33 Performance Summary 80
Waste Management 37 Report Evaluation and Suggestions 84
Preface 2 Preface 3
Preface
About This Report
Note on This Report
This is the Environmental, Social and Governance Report (ESG Report) released by Shanghai
Zhonggu Logistics Co., Ltd. (hereinafter referred to as "Zhonggu Logistics" , "we" or the
"Company" ). It comprehensively expounds the performance and management measures of
Zhonggu Logistics in 2022 surrounding economy, environment and society, and discusses the
common concerns of stakeholders, with focus on disclosing the environmental, social and
governance performance of the Company and its subsidiaries (collectively referred to as the
"Group" ).
Reporting Time
From January 1, 2022 to December 31, 2022 (referred to as the "reporting period" ); some
information and cases may be beyond the reporting period.
Reporting Scope and Boundaries
This Report covers Shanghai Zhonggu Logistics Co., Ltd. and all of its subsidiaries, with the same
reporting scope as the Annual Report.
Notes on Data
The financial data herein comes from the consolidated financial statements for 2022, which
have been independently audited by Pan-China Certified Public Accountants LLP (Special
General Partnership); the reminder of the information and data are mainly sourced from the
Company's internal statistical reports or documents. The monetary amounts indicated herein are
denominated in RMB. The term "Zhonggu Shipping" refers to our parent company – Zhonggu
Shipping Group Co., Ltd.
Reference Standards
This Report is prepared with reference to the Compilation Guide for "Corporate Social
Responsibility Fulfillment Report" and the Guideline on Environmental Information Disclosure
by Listed Companies published by Shanghai Stock Exchange (referred to as the "SSE" ), and with
appropriate reference to the GRI Sustainability Reporting Standards (GRI Standards) by the Global
Reporting Initiative (GRI).
Confirmation and Approval
This Report was approved by the board of directors on April 7, 2023 following the confirmation by
the management.
Preface 4 Preface 5
Message from
the Chairman
win outcome with customers. While speeding up the process of "shipping loose cargo via
containers" , we are committed to creating green future in a more intensive and lower-carbon
manner. We strive to make positive and due contributions to realizing national goals of carbon
peaking and carbon neutrality and dealing with global climate change.
Zongjun Lu We always stick to the people-oriented corporate culture, and champion the vision of
——Chairman of Zhonggu Logistics "helping employees achieve ambitions in fun and through learning" . In 2022, the Company
moved the workplace to a new 5A office building, and built a diversified and personalized
welfare system, providing employees with catering and fitness services We have established and
maintained stable and harmonious labor relations by safeguarding the legitimate rights and
interests of employees and regularly organizing team building activities and festival activities
to enrich their spiritual and cultural life and enhance their sense of belonging. In addition,
we actively promote the cultivation, growth and development of every employee by organizing
As a private leading enterprise of container logistics in the domestic trade sector, Zhonggu various relevant ability and quality training, adhering to the employment concept of "the
Logistics always stays true to the original intention of "Changing China's Logistics with competent go up and the mediocre go down" , unblocking the promotion tracks, and continuing
Containers" and core concept of "safe, efficient and green" , and is committed to providing to implement the long-term incentive system.
customers with whole-process container logistics services. Always pursuing sustainability
in environmental, social and governance dimensions, we are committed to achieving win- We always strive to create long-term interests and investment returns for all shareholders
win development together with shareholders, customers, suppliers, employees and other and investors in various forms including cash dividends, to lay a good foundation for
communities of shared interests. In 2022, we saw high-quality development again, and we sustainable development. In 2022, we distributed dividends in the form of cash twice in view
achieved growth in business performance by seizing market opportunities, strictly controlling of favorable growth, and distributed interim dividends for the first time, with a total dividend
costs and refining internal management and strategic orientation. amount of 3.1 billion Yuan. In the next three years, we will continue to implement a positive
cash dividend policy while ensuring stable operation, to share development results with
While unswervingly pursuing sustainable and green development, we are vigorously all shareholders. Specifically, the cumulative dividends will account for at least 60% of the
promoting the policies of "switching from road transport to water transport" and "shipping cumulative profits available for distribution.
loose cargo via containers" for bulk commodity logistics in the domestic trade sector. In 2022,
our customized new green container ships with a load capacity of 89,000 tonnes, outfitted In 2023, we, in face of the still complicated external environment, will carry out relevant
with state-of-the-art engines, multiple cutting-edge emission reduction technologies and more business activities with focus on "shipping loose cargo via containers" , expand the application
low energy consumption equipment to keep greenhouse gas (GHG) emissions to a minimum, of containers to production logistics, and continue to increase industrial investment, so as to
were launched in succession. By the end of 2022, four of them had been put into operation. provide a stable supply chain support for China's economic development. In addition, we will
In addition, use of supporting reinforced small high containers increased the cargo loading assume more social responsibilities, work with all stakeholders to deliver more stable and
capacity by at least 10% at the same freight rate, realizing mutually beneficial and win- efficient container logistics services, and make contributions to China's green better future.
Zhonggu Logistics at a Glance 6 Zhonggu Logistics at a Glance 7
Zhonggu Logistics
at a Glance
Company Profile
Zhonggu Logistics is one of the first companies in China specializing in container Core Business and Scale
shipping in the domestic trade sector. It was listed on the SSE in September 2020
(603565.SH). Since its inception in 2003, the Company has been offering clients from The Company is mainly engaged in container logistics services. It is one of the first companies in China specializing
industrial and agricultural commerce safe, efficient, green and convenient whole- in domestic coastal container shipping. Its transport capacity ranks among the top three in the container
process multimodal transport services, powered by standard containers and big data. transportation market for domestic trade. The Company is capable to transport more than 10,000 kinds of goods
We have maintained rapid and healthy development over the years, championing the through various containers including SQ containers, coal containers, special containers and refrigerated containers.
corporate mission of "Changing China's Logistics with Containers", the core values of Through the integration of water transport, rail transport and road transport, we can provide multimodal transport
"Loyalty, Sincerity, Diligence" and the corporate vision of "Leading the development services such as land-sea multimodal transport, river-sea multimodal transport, water-water transfer, sea-rail
of China's logistics, serving the society, and empowering employees" . multimodal transport and so on. At present, Zhonggu Logistics is stepping up entire logistics efforts through
a "landing strategy" to provide clients with "door-to-door" logistics solutions so as to further enhance core
competitiveness.
As of the end of the reporting period, Zhonggu Logistics had more than 200 offices and branches in nine major
regions of China, which radiate dozens of provinces and cities and more than 100 ports in China. In addition, we
operated more than 120 container ships with approximately 400,000 TEUs. Zhonggu Logistics has formed a mega-
system of maritime transport and logistics connecting China's coastal areas with the Yangtze River and the Pearl
River, and occupies an industry-leading position relying on the high container throughput for domestic trade in
dozens of ports along the coastal areas and the Yangtze River.
Zhonggu Logistics at a Glance 8 Zhonggu Logistics at a Glance 9
Cultural Values Milestone and Glories
For the lasting and rapid development, Zhonggu Logistics not only needs a wise business In the past 2022, we won recognition and praise from all parties through unremitting
philosophy, but also relies on the corporate culture as "core competitiveness". We are efforts to unblock the logistics chain and create a better life with the core values of
increasingly energetic and vigorous through constant expanding, adjusting and renewing. "Loyalty, Sincerity, Diligence".
Under the principle of "culture first", Zhonggu Logistics is committed to becoming a "First-
class company, First-class talent, First-class performance, First-class return", a promoter of
global trade, a better service provider for customers, a better partner for suppliers, and a
better career growth platform for employees.
Sustainability Course
Formed an initial scale from 2010 to 2013
In 2011, key routes including Shanghai-Guangzhou,
Corporate Purpose: Bringing happiness to employees and creating value for the society In 2010, Zhonggu Logistics was officially established. Its Qingdao-Xiamen, Qingdao-Guangzhou, Taicang-Guangzhou,
controlling shareholder Zhonggu Shipping is one of the first and Rizhao-Guangzhou were successively opened, marking
companies in China specializing in container shipping in the that Zhonggu Logistics became one of the first companies
domestic trade sector in China specializing in container shipping in the domestic
Corporate Mission: Changing China's Logistics with Containers trade sector that opened boutique routes
Corporate Vision: Leading the development of China's logistics, serving the society,
and empowering employees Strategic transformation from 2014 to 2016
In 2016, big ships were introduced
Client Vision: Making customers the most competitive players in their industries In 2017, the direct-to-customer
from Zhonggu Shandong, Zhonggu
In 2015, Shanghai Zhonggu Logistics strategy was launched, realizing the
Liaoning, etc., to improve the single
Co., Ltd. was established transformation of service objects from
ship load and shipping efficiency and
freight forwarders to direct customers
reduce shipping costs
Staff Vision: Helping employees achieve ambitions in fun and through learning
Corporate Pursuit: First-class company, First-class talent, First-class performance,
New development from 2017 to 2021
First-class return
In 2019, with
implementation of the
Business Style: Serious, Agile, Responsible for results In 2017, strategic investors multimodal transport
such as Softbank China strategy, a multimodal In 2021, further expanded
Venture Capital (SBCVC transport logistics platform In 2020, officially listed transport capacity
Softbank China Capital), YTO was developed, and the on A-share main board and enhanced core
Core Values: Loyalty, Sincerity, Diligence Express, Shanghai FTZ Fund, industrial tentacles were (603565. SH) competitiveness in a new
East Bell Venture Capital and extended from the economic development period
GLP were introduced hinterland of coastal and
riverside provinces and cities
Customer Values: We pursue customer satisfaction to the inland areas
Product Values: Safe, Efficient, Green
A new future in 2022
Talent Values: Action precedes achievements, contribution precedes value The first container ship titled "Zhonggu Jinan" with 4,600 TEUs successfully set sail, and the strategy of "shipping loose cargo
via containers" was implemented in an orderly manner
Zhonggu Logistics at a Glance 10 Zhonggu Logistics at a Glance 11
Honors and Awards of Sustainability
Enterprise registered and certified by Dun & Bradley (certified in 2022)
•Dun & Bradstreet
Sustainability Rating Wind ESG Rating A
•China Federation of Logistics & Purchasing (CFLP)
•CFLP
•Securities Times
Enterprises with the Highest Investment Value at the 12th China Logistics Investment and Financing Conference
•Logistics Investment and Financing Branch of China Communications and Transportation Association,
Chengdu Supply Chain Association
Return to Shareholders
The 19th Gold Wheel Cup for Customer Satisfactory Container Company
•China Shipping Gazette In the past 10 years of rapid growth, we always value the return to
shareholders. Since being listed on September 25, 2020, the Company
has distributed cash dividends for three consecutive years, and the
•China Communications and Transportation Association
In 2022, the cash
dividend amounted to RMB
•China Securities Journal
In 2020, the cash
dividend amounted to
RMB 600 million (tax
inclusive), and the
dividend payment rate
was 58.89%
In 2021, the cash dividend
amounted to RMB 1.438
billion (tax inclusive), and
the dividend payment rate
was 59.82%
Listed in
September 2020
Zhonggu Logistics at a Glance 12 Annual Features 13
Key Performance Annual Features
A New Green Transport
Economic
Indicators Unit 2022 2021
Mode of "Shipping Loose
Total container capacity Tons Approx. 2.6 million Approx. 2.4 million
Container shipping volume TEUs Approx. 400,000 Approx. 400,000
Cargo via Containers"
Shipping volume TEUs 12.13 million 13.26 million
Audited operating income Yuan RMB 14,208,916,476 RMB 12,291,181,868
Audited net profit attributable to
Yuan RMB 2,741,385,744 RMB 2,404,291,736
shareholders of the listed company
Audited corporate income tax payments Yuan RMB 925,522,523 RMB 809,724,635 New economic globalization has driven the development and structural
transformation of the logistics industry. As one of the industries with
Audited basic earnings per share Yuan/share 1.93 1.83
high energy consumption and high carbon emissions, the transportation
Cash dividend RMB 10,000 201,492 143,814 industry imperatively needs the low-carbon transformation. In this context,
energy conservation and emission reduction has become a must to build a
Dividend payment rate % 73.50 59.82
transportation power. In order to reduce logistics costs and traffic pollution
and improve logistics efficiency, container transport came into being. The
Environmental
container transport system constitutes an important part of the modern
Indicators Unit 2022 2021 circulation system, and is regarded as a key means for implementing
Tonne of CO2 equivalent/ the national low-carbon strategy. To advance the green and low-carbon
GHG emissions intensity by revenue 62.38 91.67 development of the transport industry and realize the national strategy
million Chinese Yuan
Kilowatt-hour/million of "carbon peaking and carbon neutrality", it is of great significance to
Energy intensity by revenue 232,816 340,786
Chinese Yuan accelerate the establishment of the container water transport system and
Generation intensity of hazardous waste give full play to the green, economic and efficient advantages of container
Tonne/million Chinese Yuan 0.10 0.09
by revenue transport and multimodal transport.
Generation intensity of harmless waste
Tonne/million Chinese Yuan 0.05 0.06
by revenue
Water consumption intensity by revenue Tonne/million Chinese Yuan 5.28 7.14
Social
Indicators Unit 2022 2021
Days of work lost due to occupational
Days 12 102
injuries
Work injury rate % 0.07 0.14
Total number of trainees Person 18,545 13,349
Average number of hours of training per
Hour 40.28 24.52
employee
Number of complaints received about
/ 146 227
products and services
Donations outside the community Yuan 1,000,000 555,035
Employee volunteer hours Hour 86,400 694
Social contribution per share Yuan/share 3.94 3.55
Annual Features 14 Annual Features 15
Green Emission Reduction
In order to achieve the strategic goal of "carbon suitable for container transport in the domestic trade
peaking and carbon neutrality", the State Council sector of China mainly include coal, ore, grain, etc.
issued the Work Plan to Optimize and Adjust the Container transport, as a mode of completely closed
Transport Structure by Promoting the Development transport from origin to destination, can realize the
of Multimodal Transport (2021-2025) (the "Plan") in whole-process three-dimensional control of goods.
transport to and rail transport and water transport" of Statistics, China's freight turnover reached 22,360
for bulk commodities, and encourages "shipping billion ton-kilometers in 2021.If only water transport
loose cargo via containers" for industrial and mining mode was adopted, 57.95 million tonnes of standard
enterprises and grain enterprises 1. In addition, rail coal would be consumed2, 140 million tonnes of CO23
transport and water transport are mainly suggested would be emitted. Compared with road transport
for medium and long-distance transportation, to and rail transport4, container water transport in the
improve the overall transport efficiency, reduce social domestic trade sector enables more efficient energy
logistics costs, and promote energy conservation, conservation and emission reduction with greater
emission reduction and carbon reduction. The goods contribution to ecological protection. In 2022, in response to the call for standardized and intensive development of container logistics in the domestic
trade sector, Zhonggu Logistics accelerated the promotion of the green transportation mode, namely "shipping
loose cargo via containers". During the reporting period, Zhonggu Logistics actively promoted the policy of
Carbon emissions under different modes of transport
"shipping loose cargo via containers". Specifically, more than 90 kinds of loose goods including grain, coal and
ore were transported through totally5 768,607 TEUs. The new green transportation mode of "shipping loose cargo
Carbon emissions (10,000 tons
efficient, which promotes Zhonggu Logistics to steadily establish a new modern logistics system.
of CO2)
via containers" accounted for 18.39%, and the carbon emissions of Zhonggu
Reduction of
Logistics from the "shipping of loose cargo via containers" reached about
- carbon emissions
Carbon emissions from water tra nsport Carbon emissions from rail transport less than carbon emissions from rail transport and road transport respectively.
Carbon emissions from road transport
•The "shipping loose cargo via containers" mode minimizes the dust raising,
scattering, spilling or volatilization phenomenon of dry bulk and liquid
Decline of bulk in the process of loading, unloading, transportation and stockpiling,
pollution degree thus reducing the environmental pollution from transportation and port
operations, and accelerating the green and low-carbon transformation of the
transportation industry.
The "shipping loose cargo via containers" mode refers to transportation of bulk cargoes such as coke, coal and 4
According to the 2019 Statistical Bulletin on the Development of the Transportation Industry, the standard coal
ore originally loaded in railway gondolas, road trucks and bulk cargo ships, through sealed containers. consumption of road freight enterprises was 1.7 kg/100 ton-km, which is equivalent to 0.017 kg/ton-km. According
to the 2019 Railway Statistics Bulletin, the comprehensive energy consumption of railway transport was 3.94
According to the 2019 Statistical Bulletin on the Development of the Transportation Industry, standard coal tonnes of standard coal/1 million ton-km, which is equivalent to 0.00394 kg/ton-km.
consumption of coastal freight transport enterprises was 4.8 kg/1,000 ton-nm, which is equivalent to 0.00259 kg/
ton-km. 5
The Company consolidates the data and input the data into system for the loose cargoes of different places to be
shipped via containers, mainly including grain, coal, ore, etc.
According to the Greenhouse Gas Emission Coefficients of Common Fuels, the carbon emission coefficient of coal
is 2.5 kg CO2/kg.
Annual Features 16 Annual Features 17
Safe and Efficient
The "shipping loose cargo via containers" mode can prevent leakage and venting of "Innovative small high containers"
goods during transportation, reduce the rate of freight loss and damage, improve
the safety and stability of transportation, and make products more competitive
in the subsequent circulation process. In addition, containers as a standardized In response to the policy of "shipping
transportation mode enable efficient loading and unloading, and help Zhonggu loose cargo via containers", Zhonggu
Logistics to realize the client vision of "making customers the most competitive Logistics developed the "innovative
players in their industries". small high containers" that are
heightened and reinforced version
of ordinary small flat containers, to
increase the load capacity. Due to
Enrich goods suitable for container the advantages of large capacity and
Improve flexibility
transport low freight, "shipping loose cargo via
containers" has been increasingly
popular, fully demonstrating its
value.
•During the reporting period, 90 kinds of bulk •The "shipping loose cargo via containers"
goods, including those that were not suitable mode makes on-demand transportation In line with the national weight
for container transport in the traditional sense possible, prevents risks related to various types limit requirements, the "innovative
(such as grain, coal and ore), were shipped of goods in stock at the ports, and realizes the small high containers" can achieve
through containers flexible small-batch transportation a 10% increase in the freight volume
of bulk cargo, and greatly improve
•Zhonggu Logistics has formed a diversified •Zhonggu Logistics can customize the "door-to-
the transportation efficiency, while
container ecosystem, providing the right door" logistics solutions for various customers
reducing the whole-chain energy
containers for different goods by optimizing the packing techniques for
consumption by nearly 10%.
various kinds of bulk goods Lower freight
•Zhonggu Logistics has developed "innovative
Larger capacity Compared with the ordinary small flat containers, "innovative
small high containers" whose advantages •Zhonggu Logistics provides services of cold-
"Innovative small high containers" small high containers" can the freight cost by 20 Yuan/ton.
are highlighted for transport of corn, coke, chain transportation at - 40 ℃～ 25℃ ,flexibly
are larger than ordinary containers
condiments, etc. meeting the requirements of different goods More convenient transportation
for domestic trade by about 10% in
for storage temperatures The "innovative small high containers" enable the efficient one-
capacity.
stop rail transport.
Improve loading and unloading
Reduce transportation costs
efficiency
•Reduce the costs of loading, unloading and •The "shipping loose cargo via containers"
packaging, as well as the loss of goods mode realizes large-tonnage, large-batch and
long-distance transportation without the need
•Compared with rail transport, road transport
for secondary unloading and reloading
a n d a i r t ra n s p o r t , wate r t ra n s p o r t h a s
a low unit cost,and helps to reduce the •The "shipping loose cargo via containers"
comprehensive social logistics cost mode realizes the seamless integration of
multiple transportation modes including road
transport, rail transport and water transport
(suitable for multimodal transport),and meets
the needs of different customers, combining
transportation and trade gradually
Strengthen ESG Governance 18 Strengthen ESG Governance 19
ESG Governance
Strengthen System
ESG In order to realize the corporate mission of "Changing China's Logistics with Containers" and
Governance
ensure environmental, social and governance work is carried out smoothly, Zhonggu Logistics has
established a three-tiered governance structure for managing ESG affairs. In addition, we better
respond to the demands of all stakeholders through actively, timely and effective communication
through multiple channels, with an aim to achieve the sustainable development.
We believe that actively undertaking ESG responsibilities
and promoting the sustainable de velopment of
ESG Governance Structure
the industry and society are the prerequisites for a
company's long-term development .We have gradually Establishing a complete ESG governance structure is vital to strengthen ESG management.
improved ESG management level and accountability Zhonggu Logistics needs to constantly practice the concept of sustainable development during
system by continuously strengthening ESG management, routine operation and management. We have set up a three-tiered ESG governance structure
establishing and improving the ESG governance system. composed of the Board of Directors, ESG Working Group and functional departments. As the
To achieve dual circulation of domestic and foreign highest decision-making body, the Board of Directors is responsible for overall planning the
trade, Zhonggu Logistics orderly explores and expands Company's ESG work, supervising, deliberating and making decisions on the Company's ESG
foreign trade business, which lays a good foundation for strategy and goals, and reviewing major issues and risk identification results. The Company
seeking new growth points of performance. In addition, has also established an ESG Working Group, headed by the Secretary of the Board of Directors
Zhonggu Logistics actively contributes to the realization responsible for annual reporting to the Board of Directors. The heads of each functional
of United Nations Sustainable Development Goals department serve as members of the group supervising the implementation of ESG work by each
(SDGs), by actively assuming social responsibilities, functional department. Facts prove that the three-tiered ESG governance structure with clear
constantly improving its management mechanism rights and responsibilities helps Zhonggu Logistics to steadily and effectively carry out ESG work.
and organizational system, strengthening routine
operation management, and devoting to public welfare
undertakings.
•Make decisions on major ESG issues
Board of Directors •Review and analyze the progress related to attainment of ESG goals
•Evaluate and determine ESG risks and sustainable development suggestions
•Oversee work related to ESG
ESG Working Group •Formulate relevant ESG strategies, systems and management guidelines
•Prepare ESG reports
Functional
•Implement work related to ESG
Departments
ESG Governance Structure
Strengthen ESG Governance 20 Strengthen ESG Governance 21
Stakeholder Communication Material Issues Analysis
Because the opinions of stakeholders are very important for formulating and implementing In order to understand the environmental, social and governance issues of concern
the sustainable development strategy, Zhonggu Logistics keeps contact and communication by stakeholders more deeply and objectively, Zhonggu Logistics collected 265 valid
with stakeholders. Based on the characteristics of different stakeholders, we keep deeper questionnaires, through the analysis of which we have identified the major issues of great
and broader communication and exchange with them through various channels including concern to internal and external stakeholders. We will respond to the issues concerned by all
the mechanism for normalized and diversified two-way communication. Meanwhile, we parties in this report, and fulfill relevant environmental, economic and social responsibilities.
timely make work plans according to the appeals and expectations of all stakeholders, to
contribute to the long-term sustainable development.
Our key stakeholders include government and regulatory authorities, shareholders,
investors, employees, clients, contractors/suppliers and community/environmental
representatives. And we have conducted irregular exchange of information with stakeholders
in six areas, including economy, corporate governance, environment, staff, supply chain and
community. Benchmarking analysis Stakeholder survey
Stakeholder Key Concern Means of Communication •Analyze the issues of concern by the capital • O rga n i ze i n te r n a l i n te r v i e w s w i t h t h e
market and rating agencies management and other employees
Tax transparency Information disclosure
Government & regulatory •Pay attention to macro policies, industrial •Design and issue questionnaires of internal
Anti-corruption Feature reports
authorities policies and regulatory requirements and external stakeholders
Environmental compliance Spot checks
• B e n c h m a r k i n f o r m a t i o n o n p e e r b e st
Shareholders' meetings practices, business characteristics and so on
Corporate governance
Information disclosure
Risk management
Shareholders & investors SSE E-interactive
Market performance
Roadshows
Economic performance
Site visits
Identify the issues related to sustainable Form an analysis matrix of material
value co-creation issues
Equal employment
Staff congress meetings
Diversity & equality of opportunity
E-school
Employees Employee care
Employee satisfaction surveys
Training & education •Form a matrix of major issues according to priority •15 highly important issues
Discussion & communication
Occupational health & safety
issues of concern by all stakeholders
•18 moderately important issues
Client satisfaction surveys •Focus on disclosing relevant issues in the Report
Client satisfaction •2 less important issues
Communication and complaint
Client privacy protection •Importance to stakeholders
Clients channels
Optimization of ship operation
Trade shows & promotional
Safety management •Strategic importance to Zhonggu Logistics
campaigns
Responsible sourcing Signing of a contract/agreement
Contractors/Suppliers Environmental & social Supplier training
assessment of suppliers Summits
Community interest
Environmental compliance
Representatives of communities/ News media
Greenhouse gas emissions
environmental groups Field investigation
Wastewater discharge
management
Strengthen ESG Governance 22 Strengthen ESG Governance 23
Response to SDGs
The 17 SDGs are jointly proposed by the member states of
the United Nations, and are internationally shared values
and practices. In active response to the 2030 Agenda
for Sustainable Development, Zhonggu Logistics has
incorporated SDGs into the scope of ESG management
according to the major issues identified.
Material ESG Issues of Zhonggu Logistics
Strengthen ESG Governance 24 Green Shipping Practices 25
Green Shipping
Response action of Response action of
SDGs SDGs
Zhonggu Logistics Zhonggu Logistics
Establish the sound internal Create a diverse and equal
safety management framework employment environment in
Practices
and occupational health which all personnel enjoy fair
assurance system, and organize and equitable employment
diversified safety and health opportunities, and pursue
trainings, to enhance the safety the distribution rationality in
awareness of employees employee gender, age and region
Establish a diversified talent Vigorously implement the
As it is increasingly urgent to deal with climate change, Zhonggu Logistics
cultivation system to help strategy of "shipping loose
employees further improve cargo via containers" and boost actively responds to environmental challenges and promotes green shipping
their abilities and occupational construction of sustainable for sustainable development. While expanding business steadily, we
value communities continuously improve the environmental management system, and promote
green shipping, ecological construction and green development together with
all sectors of society, to minimize the environmental impact and contribute to
realization of the national "carbon peaking and carbon neutrality" goals.
Promote workplace equality Establish a sound container
and provide male and female management and shipping
employees with the same service system to safeguard
development platforms and the rights and interests of
opportunities consumers
Formulate the Water Resources Reduce the emissions of
Management Plan for Ships greenhouse gases and harmful
and other rules and policies gases in strict accordance with
to strengthen scientific and the emission requirements of
unified management of water- various countries and regions,
related projects of the Company and build green ships
Use high-quality fuel for all Strengthen the utilization
self-owned ships according of water resources and
to national environmental wastewater disposal and
requirements, and continuously discharge of ships, to reduce
reduces the fuel consumption water consumption and prevent
of ships water contamination
Improve the corporate
Establish and improve the
governance structure, strengthen
internal compensation and
anti-fraud management, supplier
benefit system based on
integrity promotion and anti-
employees' abilities and
corruption publicity, to reinforce
performance in consideration
the foundation for sustainable
of market levels
development
Formulate and implement the
Increase investment in R&D,
bidding/tender process, and
and promote transformation of
follow the principle of fair and
digital shipping with focus on
equitable procurement, to
informatization, digitalization
ensure business with suppliers
and intellectualization
in good faith
Green Shipping Practices 26 Green Shipping Practices 27
Climate and Energy Green Ships
The Company reduces greenhouse gas emissions by equipping green ships with state-
of-the-art engines, increasing the proportion of low energy consumption equipment
By strengthening green and low-carbon management including use of green ships,
and adopting multiple cutting-edge emission reduction technologies. Zhonggu
clean energy and low fuel-consumption products, we have further highlighted
Logistics has placed an order for 18 green ships with the load capacity of 90,000
the strengths in energy conservation and emission reduction and reduced carbon
tonnes. During the reporting period, four ships including one titled "Zhonggu Jinan"
emissions in the shipping process.
have been delivered successively. In particular, the first ship "Zhonggu Jinan" was
officially delivered in October and successfully set sail from Shandong Port. Currently,
the Energy Efficiency Design Index (EEDI) of our green vessels falls at least 20% below
the requirement level, saving approximately 300 tonnes of fuel oil per ship per year,
Fuel consumption
Green ships Clean energy which is equivalent to reducing 944 tonnes of CO2 emissions per ship per year.
control
•Empower green ships with the •Use high-quality fuel oil for all •Whole-process supervision by
Green ships of Zhonggu Logistics
world-leading technologies self-owned ships designated persons from the
fuel oil supervisory department
•Strictly control the emission of •Strengthen the monitoring of
sulfur oxides, nitrogen oxides oil sampling, and refuse to use •Accurate gauging and error
Use the S-BOW Equipped Frequency Choose the A number of
and particulate matter from fuel oil exceeding standards control
for better speed with a high- conversion greener latest energy-saving
our ships
•Route control and economy of and seakeeping voltage shore device is version of measures, such
fuel oil consumption performance power AMP installed for load main engine; as a efficient
system, which control of equipped propeller, hub
can access pump and fan in with a shaft vortex absorbed
shore power engine room to generator to fins, energy-
under berthing reduce energy meet the needs saving pre-swirl
condition consumption of equipment in ducts and flap
to reduce navi`gation and rudders, are
pollution from reduce fuel oil adopted to
berthing consumption improve the
ship's speed
performance
Green Shipping Practices 28 Green Shipping Practices 29
Fuel Oil Management
Fuel oil quality control
Fuel oil is the key energy for shipping. Therefore, Zhonggu Logistics
comprehensively strengthens the monitoring and management of Fuel oil •Zhonggu Logistics has formulated the Fuel Oil Quality Control Management Program (Trial) to standardize
Supervisory
fuel oil use while exploring the efficient use thereof. supervisory
representatives fuel oil quality control process and ensure that all our own ships run on high quality fuel oil. We have
department
In response to the national policy of energy conservation and also been working with authoritative inspection and monitoring agencies to strengthen comprehensive
emission reduction, Zhonggu Logistics has created the Energy oil sampling monitoring in accordance with the National Standard of the People's Republic of China—
Management System for all management departments of its own Marine fuel oils (GB17411-2015). For fuel oils that fall short of the national standard of quality, we give
corresponding penalties to the oil suppliers. We use diesel up to China VI Vehicle Emission Standards as
vessels as an effort to standardize energy management, prevent Oil gauger
marine and harbor pollution by ships, and maintain the ecological light fuel oil, and ensure use of optimal products meeting national environmental requirements.
balance. To regulate the use of fuel oil, we have formulated the Fuel
Oil Management Measures stipulating closed-loop management of
fuel oil purchase, bunkering, storage and use applicable to all self- Accurate gauging
The Supervisory Framework for Fuel
owned vessels and chartered vessels.
Oil of Zhonggu Logistics
Zhonggu Logistics pays great attention to vessel energy consumption. •We have compiled the Management System of Measuring Equipment Calibration, Use and Maintenance to
We have set up a department to supervise the fuel oil consumption standardize the measuring operation and management of tools. In addition, we have effectively dealt with
and implement comprehensive closed-loop management of the Company's own tankers and shipping oil supplies the situations such as energy waste caused by oil storage error or inaccurate measurement. Moreover, our
for the four existing logistics bases. We assign regulatory representatives to each base to observe the quality and oil gauger boards the ship to measure, and uses video recording and record sheets to record the amount of
quality of fuel oil, and board the ship to supervise the refueling situation and the fuel supply on the bunker supply oil transferred throughout the process.
vessel in real time.
While strengthening the management of fuel oil use, Zhonggu Logistics also pays attention to significant impacts of
human factors such as oil receiving and feeding and measurement errors on the use of fuel oil. At present, we strive Route control
to manage fuel oil with greater efficiency and reduce consumption primarily by controlling the quality of fuel oil,
eliminating measurement errors and optimizing route control.
•The Company supervises ships in real time relying on network and other technical means. When there
are not enough berths in the port and the ship cannot dock directly, an economic speed is not maintained
as planned, or scheduling needs, responsible personnel of the dispatch center will inform the captain to
correspondingly adjust speed in real time to prevent accidents.
In 2022, we will continue to improve the efficiency of resource utilization, promote
low-carbon emission reduction, and significantly improve the performance in energy
consumption and greenhouse gas emissions, with details as follows:
Green Shipping Practices 30 Green Shipping Practices 31
Energy performance Green Office
Category Unit 2022 2021 Changes
In the routine operation process, Zhonggu Logistics actively practices the concept of green office. In 2022, we
Total direct energy moved into a new office building with energy-saving equipment in the office area. We optimized the working time
Kilowatt-hour 3,306,452,045 4,187,430,357 21%
consumption6 of air conditioners, lamps and other devices, and transformed the existing lighting facilities in the public area into
microwave induction types, to further reduce energy consumption. In addition, we carried out many environmental
Total indirect energy activities during the environmental theme day and public welfare volunteer activities to guide people to establish
Kilowatt-hour 1,614,100 1,232,600 31%
consumption7 green environmental awareness and practice low-carbon life.
Comprehensive energy
Kilowatt-hour 3,308,066,145 4,188,662,957 21%
consumption8
Comprehensive energy Kilowatt-hour/
intensity by revenue million Chinese Yuan
Replace traditional faucets with sensor faucets
Greenhouse gas emissions9
The lamps for the garden on the top floor of the office building can
Category Unit 2022 2021 Changes be automatically switched to the time-power-off switching mode
according to the seasonal weather conditions
Category 1 Total GHG Tonne of CO2
emissions10 equivalent
The lamps for basement garage can be set through the intelligent
Category 2 Total GHG Tonne of CO2 lighting control software as required
emissions11 equivalent
Tonne of CO2
Total GHG emissions 886,309 1,126,692 21%
equivalent Reasonably set the season and time of air conditioning in the office
building
GHG emissions intensity Kilowatt-hour/
by revenue million Chinese Yuan
Direct energy consumption includes gasoline, diesel, low sulfur fuel oil and lubricating oil.
Indirect energy consumption comes from purchase of electricity.
For calculation of the comprehensive energy consumption, please refer to General principles for calculation of
the comprehensive energy consumption (GB/T 2589-2020) promulgated by the State Administration for Market
Supervision and the Standardization Administration of China.
For GHG emission factors, please refer to the Guidelines for Accounting and Reporting Greenhouse Gas Emissions
from Enterprises of Other Industries (Trial) published by the National Development and Reform Commission in
power grid issued by the National Climate Center in 2012 to the average emission factor of national power grid for
from 2023 to 2025 issued by the Ministry of Ecology and Environment.
Category 1 includes the greenhouse gas emissions from combustion of gasoline, diesel and low-sulfur oil.
Category 2 includes GHG emissions from electricity consumption in the process of ship operation and office
operation.
Green Shipping Practices 32 Green Shipping Practices 33
Water Resource Management
Water resources are crucial to the operation of ships and machinery as well as the daily life of crew members in our
business operations. The wastewater that pollutes the ocean during ship operation is mainly composed of ballast
water, oily wastewater, etc. The wastewater from ships is discharged and disposed of in strict accordance with laws
and regulations such as The Law of the People's Republic of China on the Prevention and Control of Water Pollution,
The Law of the People's Republic of China on Marine Environmental Protection, Regulation on the Prevention and
Control of Vessel-induced Pollution to the Marine Environment, The Discharge Standards of Ship Pollutants, and
The International Convention for the Prevention of Pollution from Ships.
Zhonggu Logistics has formulated a number of control documents such as the Water Resources Management
Plan for Ships, the Management and Operation Method of Ballast Water, the Instructions for Domestic Wastewater
Discharge, and the Emergency Management of Oil Pollution to manage the use of ship water resources as well as
During the "World Ocean Day" in 2022, we organized the disposal and discharge of wastewater, reduce the consumption of water resources, and avoid water pollution.
We protect the natural environment by taking
the environmental bag design competition themed
practical actions and through public welfare
by "Blue Planet · My Home" to guide more people
projects such as science popularization on beach
to reduce plastic waste and use biodegradable
cleaning and garbage sorting.
environmental bags.
Green Shipping Practices 34 Green Shipping Practices 35
Oily Wastewater Ballast Water
We constantly strengthen the supervision over the discharge of oily wastewater to make sure that all In accordance with The International Convention on the Control and Management of Ships' Ballast Water and
indicators are at or even above national and local levels and that all fleets follow a standard process for Sediments issued by the IMO12, Zhonggu Logistics has developed ballast water-related management plans to ensure
discharging oily wastewater. We try to reduce the residue rate through refined management according to compliance in terms of ballast water. All international vessels are equipped with ballast water treatment devices in
the results of comparing the amount of fuel oil supplied with the residue of oily wastewater after boiling. compliance with international conventions. All of the Company's current ballast water treatment systems adopt the
In addition, we implement the management accountability system for ships with a standard residue rate technical means of both mechanical treatment (filtration) and physical treatment (nitrogen asphyxiation), which
of over 0.5%. Specifically, we determine whether the use of the ship's fuel oil is normal and whether the continuously improves the efficiency of ballast water treatment. All ships of the Company have complied with the D-2
personnel's operation is standardized based on the residue rate. In case of any data abnormality, we will standard (Biological and Hygienic Standards for Ship Ballast Water Treatment) since 2017, and all ship ballast water
analyze and identify the reasons. treatment systems are in compliance with USCG13 certification.
For the discharge of oily wastewater, each vessel for foreign trade is equipped with an oil-water separator
and a 15 PPM monitor. As required, we never privately discharge oily wastewater, residual oil, and dirty
oil from ships, all of which need to be returned to the shore for disposal and can only be discharged
as required after obtaining a certificate of acceptance. For the purpose of traceability, the fleet timely
Domestic Wastewater
records the discharge of oily wastewater in the Oily Wastewater Logbook, and the maintenance
department regularly inspects the ship's wastewater control facilities onboard. Our vessels are equipped with domestic wastewater storage tanks and the outboard direct sea valve is cut off to
make sure that any domestic wastewater is treated by domestic wastewater treatment devices. The domestic
The Company actively seeks problems through interviews on all our self-owned vessels to check the
wastewater is discharged into the sea 12 nautical miles away after being pulverized in strict accordance with the
generation, management and discharge of oily wastewater from ships. If some problems (if any) are
discharge rate requirements. The qualified domestic wastewater after biochemical treatment may be pulverized
found, we take corrective measures timely, and properly record and archive the interviews.
and discharged to places 3 nautical miles offshore according to the discharge rate. In waters where discharge is not
allowed, such as the inland sea of China, any wastewater is taken back to shore for disposal.
Seawater Desalination
The utilization and management of freshwater resources are of utmost importance. Each vessel of Zhonggu
Logistics is equipped with a freshwater generator during international voyages, which stores the distilled water in a
freshwater tank for daily life, engine-room equipment and cooking. In 2022, the seawater desalination capacity of
our international vessels was 36,685 tonnes, and the total freshwater consumption was 34,385 tonnes.
IMO refers to the International Maritime Organization, the United Nations specialized agency based in London,
UK, with responsibility for the safety and security of shipping and the prevention of marine and atmospheric
pollution by ships.
USCG refers to the United States Coast Guard Ballast Water Management System (BWMS) Type Approval
Certificate.
Green Shipping Practices 36 Green Shipping Practices 37
Waste Management
The use of water resources and wastewater discharge of Zhonggu
Logistics during the reporting period are as follows:
Use of water resources
Category Unit 2022 2021 Change
Zhonggu Logistics always pays attention to the impact on the natural environment during business
operations. We continue to improve our waste disposal capabilities, reduce the waste, and explore a
Total water consumption14 Tonne 74,958 87,876 15%
circular economy development model.
Water consumption intensity Tonne/million Zhonggu Logistics has formulated the Instructions for Ship Pollution Prevention and Management, the
by revenue Chinese Yuan Pollution Prevention Code, the Pollutant Identification Regulations and other systems in strict accordance
with the Environmental Protection Law of the People's Republic of China, the Energy Conservation Law
Freshwater consumption Tonne 74,958 / / of the People's Republic of China, the Marine Environmental Protection Law of the People's Republic of
China, the Law of the People's Republic of China on the Prevention and Control of Environment Pollution
Total water recycling and Caused by Solid Wastes and other laws and regulations, built a sound environmental management
Tonne 120 / /
reuse system, and minimized the pollution of various discharges such as asbestos materials and domestic
garbage to the marine environment.
Water recycling and reuse
% 0.16 / / For all our ships, we have formulated the Ship Garbage Management Plan in accordance with the
rate
International Convention for the Prevention of Pollution from Ships, which explicitly defines the
responsibilities of the captain, chief mate and other staff, and provides strict regulations on the disposal
and discharge of all wastes generated, thereby standardizing the waste classification, storage, and
Wastewater discharge disposal after berthing.
For wastes that cannot be or are not allowed to be disposed of during the voyage, we hand them over to
Category Unit 2022 2021 Change
a qualified third-party onshore waste receiving agency for disposal. In this case, we require the receiving
agency to hold domestic wastewater, oily wastewater, domestic waste and oily waste receiving licenses
Total wastewater discharge15 Tonne 16,414 6,282 161%
and conduct responsible tracking management.
Wastewater discharge Tonne/million
intensity by revenue Chinese Yuan
Environmental The
The generating Environmental
protection transportation The receiver
organization protection
archives by organization is disposes of the
deposits archives by the
the generating responsible for waste
the waste disposal agency
organization the waste
Responsiblewaste tracking management of Zhonggu Logistics
The total water consumption includes production water and domestic water.
The total wastewater discharge includes production wastewater and domestic wastewater. The production
wastewater only refers to the wastewater generated during the ship transportation that does not meet the
discharge regulations. Any other production wastewater is discharged into the ocean after being disposed of and
meeting the discharge conditions in strict accordance with the relevant national laws and regulations. The reason
for the substantial increase in the amount of domestic wastewater in 2022 is that the statistical caliber has been
adjusted: the statistical caliber for 2021 was the domestic wastewater that was withdrawn from the shore, while
the statistical caliber for 2022 was the sum of freshwater installed and freshwater generated onboard.
Green Shipping Practices 38 Green Shipping Practices 39
Waste Gas Management
To reduce the impact and pollution of waste gas pollutants generated by fuel combustion on port cities and
coastal and riverside areas when ships are sailing or docking at ports, Zhonggu Logistics has formulated the
Implementation Instructions for Ship Air Pollution Emission Control Areas in China's Sea Areas in strict accordance
with the Air Pollution Prevention and Control Law of the People's Republic of China, the Implementation Plan for
Ship Air Pollutant Emission Control Area and other laws, regulations and rules to fully regulate waste gas emissions.
We strictly control the waste gas emissions of ships, and the supervisors of the maintenance department regularly
inspect the waste gas emissions of ships. We use No. 180 low-sulfur fuel oil as marine fuel oil, which reduces the
pollution of sulfur emissions to the atmospheric environment.
The solid waste generated during the reporting period is as follows:
The waste gas emissions during the reporting period are as follows:
Waste Category Unit 2022 2021 Change
Category Unit 2022
Total amount of harmless
Tonne 706 703 0.4%
waste16
Total waste gas emissions18 Tonne 20,567
Total amount of hazardous
Tonne 1,359 1,146 19% Waste gas emission intensity by revenue Tonne/million Chinese Yuan 1.45
waste 17
Harmless waste includes ship solid waste returned to the shore and domestic waste in offices.
Waste gas includes nitrogen oxides, sulfur oxides and particulate matter.
Hazardous waste is oily sludge.
Green Shipping Practices 40 Green Shipping Practices 41
Typhoon warning
Safe Shipping
Strengthen Risk Warning The Company is highly concerned about
the impact of extreme weather on shipping.
We provide early warning and forecasting
Zhonggu Logistics continues to put prevention first, give full
services of cargo damage accidents caused
play to the early warning function of the risk mechanism,
by typhoons, and customers read and
make timely predictions and early warnings for possible
confirm the risk warnings. The typhoon
In view of the characteristics of the water transportation industry such as high risk, particularity, and specialization, risks such as extreme weather, environmental pollution, and
warning information is announced in
Zhonggu Logistics pays close attention to shipping safety in its daily operations and provides solid guarantees for ship safety, and take emergency measures in accordance
advance on the WeChat official account
the safe operation of ships. with the predetermined management mechanism to
and the booking platform, and online
minimize the occurrence of risk events.
We have formulated a series of safety management rules such as the Safety Management Manual, the Procedure booking customers are forced to read and
Management Manual and the Ship-Shore Emergency Manual in strict accordance with the International Safety confirm it, thus reminding them to take
Management Rules, Work Safety Law of the People's Republic of China, Regulations on Reporting and Investigation relevant measures in advance and reducing
and Handling of Production Safety Accidents and other laws, regulations and rules. In particular, Zhonggu Logistics the damage caused by improper loading
Safety Management System (SMS) has obtained the International Document of Compliance (DOC). and unloading on typhoon days.
We standardize the inspection process of the meeting resolutions of the safety production committee, strictly
Analysis of the grounding accident
implement the relevant resolutions of the safety production committee and check the standard item list of relevant
of "ZHONG GU PENG LAI" container
resolutions.
ship
In 2022, a small ship grounding accident
Zhonggu Logistics holds safety committee meeting
occurred to Zhonggu Logistics. The
Company held a safety management and
coordination meeting very soon, analyzed
In 2022, the Company held a meeting of the
the cause, clarified the responsibility, and
safety production committee to discuss and
made a written investigation report. The
deal with the safety accidents that occurred
Company rectified relevant defects in a
in the early stage and safety issues on board, Zhonggu Logistics' typhoon warnings
timely manner, completed the overhaul
put forward corresponding responsibility
of the ship "ZHONG GU PENG LAI", and
requirements for responsible departments
carried out safety-related education and
such as the ship management center, crew
training to avoid similar accidents of other
department, and safety supervision department,
Reflection and Improvement
ships.
and set a time limit for implementation, which
enhanced the Company's safety risk prevention
capabilities.
To continuously improve the level of safety management,
Zhonggu Logistics' safety committee meeting Zhonggu Logistics attaches great importance to the
reflection and improvement after the accident. The
Company organizes various accident analysis meetings
to avoid the recurrence of the same accident through
experience summary, skill training, and warning education.
During the reporting period, the Company carried out
multiple inspections and repairs of ships to further ensure
The Company organized various the safety of shipping. 24 ships were repaired by shipyards,
departments to learn the lessons of which cost 156.9 million Yuan, of which 9 ships were
the grounding accident of the "ZHONG repaired by domestic shipyards at a total cost of 37.64
GU PENG LAI" ship million Yuan, and 15 ships were repaired by foreign trade
shipyards at a total cost of 119.26 million Yuan, which has
greatly improved the condition of the ships.
Create Customer Value 42 Create Customer Value 43
Provide Excellent Service
Zhonggu Logistics is one of the earliest enterprises in China specializing in container
transportation for domestic trade. Since its establishment, the Company has been committed to
undertaking the corporate mission of "Changing China's Logistics with Containers", improving
quality and efficiency, constantly standardizing the operation and management, developing
independent innovation capabilities, and providing safe, efficient, green, convenient and high-
quality multimodal logistics services for industry, agriculture and commerce.
Multiple Routes
Zhonggu Logistics has been able to provide multimodal logistics services by water and land
transport. Our business covers more than 100 ports in dozens of provinces and cities in China.
Create
We have more than 200 offices and branches in China, operate more than 120 container ships,
and enjoy dozens of domestic trade routes including boutique routes and two international
routes.
Customer Value Zhonggu Logistics Information
Platform
Zhonggu Logistics, always valuing customer needs and taking containers Information flow: interconnection between ships, Cargo and cash flow: run through the
ports, company systems, and mobile phones container logistics service chain
as the core carrier, strives to provide customers with customized and
cost-effective "door-to-door" container logistics solutions by integrating
waterways, highways, and railway transportation resources, and relying on a Railway Sea Sea Railway
modern logistics information platform. The Company is committed to building Land Water Land
Booking Packing Lading
a leading provider of comprehensive container logistics services in China. transport transport transport
Highway Water Water Highway
Multimodal business model
Create Customer Value 44 Create Customer Value 45
International Routes
Corridor--Western Lan h-Sou
In active response to the new development pattern proposed by China that "take the domestic cycle as the
The Belt and Road
mainstay and let the domestic and international cycles promote each other", Zhonggu Logistics takes advantage of
Coordinated development of the
the existing domestic trade network to continuously deepen and expand near-ocean routes.
Beijing-Tianjin-Hebei Region
In 2022, we continued to expand our layout in Southeast Asia to make the overall network more extensible and
flexible, and increased the total number of ships in operation, involving 5 overseas countries and 12 domestic and
Yangtze River international ports.
Economic Belt
N o
d
rt
- S
Guangdong-Hong
ea th S
Promote international routes with
Kong-Macao Create competitive advantages, provide
Co ea
Greater Bay Area domestic trade routes based on the
sincere services
r ri d
r platform
o
•Compared with the original CCA model for •We mobilize domestic trade barge resources,
foreign trade barge, the WGO (water gate) integrate and optimize the loading of Wuzhou-
Domestic Trade Routes model has lower cost and faster timeliness,
gets rid of the shackles of CCA on customers,
Nansha barge route, form a win-win situation
of timeliness and benefit, and create high-
reduces the timeliness and cost of the whole quality services for Zhonggu's foreign trade.
The domestic trade route network of Zhonggu Logistics has covered China's process, and provides customers with more
coastal areas and river basins. The Company strives to build a mega-system choices. In this way, it forms the core of
of maritime transport and logistics connecting China's coastal areas with the competition for the foreign trade routes of
Yangtze River and the Pearl River. To meet customers' needs for timeliness and Zhonggu Logistics.
stability of logistics, the Company has opened high-quality routes connecting
major coastal ports. In 2022, the output and load factor of Zhonggu Logistics'
boutique routes showed an upward trend compared with 2021.
Provide a guarantee with the supporting Build an excellent reputation and
service system strive for excellence
•The whole process is closely connected, and •Jumping out of the geographical limitations
we provide customers with one-to-one guide, of Nansha, we extend and expand the radiation
allowing them to have time-saving, trouble-free range of foreign trade, and create a good
and worry-free experience, to comprehensively reputation and brand reputation for Zhonggu
improve their service experience. by integrating domestic trade port, container,
and barge resources, combined with domestic
trade experience.
New mode of internal and external cycles
Create Customer Value 46 Create Customer Value 47
Quality Management •Route Management
To improve the timeliness of transportation, we continue to strengthen the
management of transportation routes, save the Company's operating costs
Zhonggu Logistics, always being customer-centric and valuing service quality, has established a standardized while improving the service quality, and form a good momentum of sustainable
container management architecture, established and implemented complaint handling and dispute resolution development.
mechanisms, to provide customers with satisfactory service experience.
Complete Container Management System
We have established a complete container management system, comprehensively optimized and upgraded the •Conventional route: Routine management according to preset system
container management system and route management methods and ensured the safety and effectiveness of each modules.
link of transportation by reducing the rate of container damage and improving the utilization rate of high-line
Transportation
route •Change of route: Changes in transportation routes due to factors such as
warehouses. Based on stable transportation, we have managed to reduce costs and improve efficiency. temporary adjustment of routes and customer needs are managed through a
specific process.
Transit •Guide ship stowage and transit flow to speed up transit, achieve the balance
•Container Management Architecture HQ
We have established a container management route of import and export, and increase the benefits of route operation.
architecture with clear responsibilities, built
a two-level flat management system within Regions
Route management
the container management department,
and ensured the adaptation of containers
and cargo through precise classification and
Ports
management of containers. In 2022, we speeded up the transportation and effectively increased the load rate
Dispatching group, repairing group, of ships by continuously upgrading container management routes and optimizing
tracking group, rental group transit channels.
Container Management Structure
Optimization of Southwest Transportation Corridor
•Container Management System
Warehouse management system On the basis of examining the whole
•By optimizing the southwest transportation corridor, we increased the load rate of the Xiamen-Tianjin line
from 46% in March to over 70%. The Xiamen-Shanghai line and Xiamen-Taicang line always maintained a
life cycle of customer service, analyzing
full load, and the overall transit time was shortened by 3- 4 days compared with southern China.
Agreed price approval system each scenario of transportation,
and relying on platform technology,
Zhonggu Logistics has established the
Express cargo transportation system container management system and
a full-process management system
Branch switching system from order placement to tracking,
query, modification and statement,
which further improves the service
Overdue container follow-up and early warning system quality.
Container management system
Create Customer Value 48 Create Customer Value 49
•Scientific Replacement of Old Containers
We reduce the loss rate of containers in three ways: old container iteration, old
Customer Service
container sealing, and upgrade of the newly repaired container management
system. In pursuit of customer satisfaction, Zhonggu Logistics continuously optimizes customer service
experience, having established and improved the customer satisfaction survey mechanism, to
improve the service quality. We invite customers to participate in customer satisfaction surveys
through channels such as the Zhonggu e-commerce platform, WeChat official account, and circle
•During the reporting period, Zhonggu Logistics fully rejuvenated the Company's
of friends. Moreover, we pay attention to customer privacy, and do not claim customers' personal
container fleet:
information in the questionnaire survey process. The overall customer satisfaction rate during the
Old
•Eliminated 13,000 self-owned old small containers (10 years and above), and reporting period was 95%, a year-on-year increase of 6 percentage points.
container
returnd 2,000 leased old small and high containers (13 years and above).
iteration We actively listen to customers' suggestions and opinions, and constantly rectify to overcome our
•Supplemented newly built 13,000 small high containers and 25,000 high own shortcomings. The Company has formulated the Operation Manual for Customer Complaint
containers. Handling Process and Management Measures to help customers solve problems efficiently. In
decrease of 36%, and the complaint handling rate was 100%.
Old
container •When the container is rich, choose to seal up the old containers.
sealing
•Open up the sharing of container age information and repair information, and Customer complaint Record complaint Judge whether it is
Upgrade of the seal up the old residual containers without repairing them. acceptance content valid
newly repaired
•The intelligent container repair management system fully realizes the data
container
connection with the container repair company, avoiding the loss of historical
management
photos due to personnel changes and other situations.
system
•Fully realize automatic matching and calculation to avoid favoritism and fraud.
Determine the
Analyze the cause of department responsible
Propose a solution
the complaint for the complaint
To improve the utilization rate of airline space, we have established a mechanism
of all-round long-term cooperation with Shanghai Pan Asia Shipping Co., Ltd. to
strengthen business coordination and achieve complementary advantages.
Cabin sharing cooperation Call back to collect
Implement solutions
feedback
In July 2022, Zhonggu Logistics started to share cabins with Shanghai Pan Asia Shipping Co., Ltd. According
to the agreement, the capacity and space of the "Shanghai-Xiamen-Shanghai" route of Zhonggu Logistics
and the "Nantong-Quanzhou, Shihu-Nantong" were shared. Complaint handling process
As of the end of the reporting period, the two sides had exchanged more than 9,800 natural containers. The
successful development of this cabin sharing business laid a good foundation for the friendly cooperation
between Zhonggu Logistics and its peers. It is expected that in 2023 we will carry out more in-depth
cooperation with our peers to achieve a higher utilization rate of airline space and improve customer
satisfaction.
Create Customer Value 50 Create Customer Value 51
Digital Platform Management
Digital Shipping
Transformation
With the rapid growth of logistics business of Zhonggu, the intelligent and
efficient digital shipping has become a new demand. To improve customer
experience, we have established a complete digital platform management
system, and independently developed six major systems: Zhonggu e-commerce
platform, bill switching system, tugging system, ship operation system, cargo
tracking system for domestic trade, and cargo tracking system for foreign trade.
With the further implementation of the "14th Five-Year Plan", the digital Together, they provide customers with logistics information services throughout
transformation of various industries is imminent. Facing the opportunities and the process.
risks of digital transformation, Zhonggu Logistics has always adhered to the
pursuit of "first-class company, first-class talent, first-class performance, and first-
class return", promoting the digital transformation of the shipping industry and
realizing the value of digital transformation.
E-commerce
platform
Cargo tracking
Bill switching
system for
system
foreign trade
Digitalization Three-
dimensionalization
Digital platform
management
system
Digital
Transformation Goals Cargo tracking
system for Tugging system
domestic trade
Zhonggu Logistics always attaches great
Platformization Mobility importance to scientific and technological
innovation, pursues the development goal
of "digitalization, three-dimensionalization,
Ship operation
platformization, and mobility", increases
system
R&D investment, focuses on informatization,
digitalization and intelligence, and facilitates
Four development goals of the logistics system digital aviation transformation.
Create Customer Value 52 Create Customer Value 53
One-stop booking service Whole-process freight tracking
Digital Innovation Technology •Establish a multi-schedule and multi-container • M a ke n o d e s t h ro u g h o u t t h e p ro ce s s o f
quotation system to allow customers to transportation transparent, so that customers can
understand Zhonggu's shipping schedule and clearly know the cargo information, transportation
As a pioneer in applying "Internet +" technology in the logistics industry, we actively leverage the advantages of quotation more directly and conveniently, and information and storage information.
our own technology reserves, continue to increase research and development efforts to improve the business truly realize the one-stop booking service for
management quality and efficiency relying on the original electronic data software, RPA technology, AI recognition customers to make independent inquiries and
and other intelligent innovation technologies. place orders.
Electronic data software Customized information push Mobile operating platform
•Optimize port docking through the developed electronic data interchange (EDI) software, and replace mail •Customers can choose the information they •Allow customers to conduct inquiries, place
delivery with electronic transmission, to improve docking efficiency. need to pay attention to and get reminders of orders, deliver goods and other operations
relevant information changes in real time. anytime, anywhere.
Robotic Process Automation (RPA)
Optimization of cargo-passenger connection mode
•RPA technology is introduced for the external customer connection system, and the B2B automatic
data docking empowers the production of enterprises, improves the efficiency of business document
processing, and reduces the error rate.
Information technology
AI recognition
•Achieve information connection with cooperative •Master big data and systematically analyze it to
terminals and yards through EDI, EIR, EDO efficiently assist business personnel in business
•AI photo recognition technology is used to realize the fast approval of container repair quotation, repair and other information to ensure that there are processing and business judgment;
review, automatic account reconciliation, etc., which ensures data accuracy while improving efficiency. traces of container entry and exit, and there is
•Unify standard docking documents to reduce the
evidence to follow when picking up and returning
risk of personnel changes.
containers;
We continue to accelerate the information construction, optimize passenger and cargo docking and terminal yard
services through the ERP system, and comprehensively improve the quality and efficiency of operational services.
In addition, we constantly optimize the cargo tracking technology system to reduce communication costs and Performance appraisal System management
improve service efficiency.
•We evaluate and rank the yards and wharfs •The closed-loop management of enterprise
through systematic data analysis of operation business is realized through system management,
time, and have established an effective incentive which reduces manual intervention, and ensures
mechanism to improve the service level. In accuracy of business data and financial data.
addition, we convert its service advantages into
our own.
Optimization of the terminal yard service system
Create Customer Value 54 Create Customer Value 55
Add the function of refreshing
Optimize data processing
cached data
•Add the function of refreshing cached data in •Launch the ES log viewing platform, test and Build Together
real time for delivery, dispatching, transshipment, improve the splicing method of background
and container transfer, weaken the large-scale parameters, improve the quality of customer
The progress of the industry is inseparable from the cooperation of multiple
refreshing cache for unfinished bills of lading every service and reduce communication costs.
players. While developing and improving its own technology, Zhonggu Logistics
night, and improve data timeliness and accuracy.
actively cooperates with other players to optimize the business operation model
and improve service quality and efficiency.
Optimization of the cargo tracking system
Automated unmanned dock
Data Security Management
In order to comprehensively improve the level of "intelligence, automation, paperless, and integration"
Based on the original data security guarantee mechanism, we updated and revised the Information Security of Zhonggu's Qinzhou project, Guangxi Land-Sea Intermodal International Container Development
Management System of Shanghai Zhonggu Logistics Co., Ltd., continued to review information security, Co., Ltd., a wholly-owned subsidiary of Zhonggu Logistics, has reached a cooperation with Shanghai
continuously consolidated the data security defense line, and improved the level of data security management. Zhenhua Heavy Industries Co., Ltd. ("ZPMC") to purchase two semi-automatic track-mounted container
gantry cranes and related automatic control and information systems independently developed and
manufactured by ZPMC with domestic first-class standards, and fully launched the domestic first-class
TOS system (Terminal Operation System) independently developed by ZPMC, so that the intelligent
Website and •Identify all sorts of Internet security problems through various methods based information level of Zhonggu's Qinzhou project reaches the highest level in domestic container inland
application security on the development cycle of the application, to ensure software security at all yards. It thus realizes independent planning, automatic operation and intelligent management of the
assessment times. entire project business process.
This cooperation has established the development position of Zhonggu's Qinzhou project in the
Website and domestic container business. Zhonggu's Qinzhou project has become the inland yard with the highest
•Reinforce the rationality of the application code and make sure that the
application security application is deployed reasonably to enhance security.
level of automation in China.
reinforcement
Filtering of •Deploy devices such as the firewall and IPS to monitor, filter and record
external threats malicious external access.
•Continuously check the current status of the protected application page and
Status
monitor the website access log directory to determine whether the page is
monitoring
under attack.
•Make plans for security incidents with high probability in advance and test
Emergency the plans in drills; strive to report and handle security incidents in the most
response efficient and reasonable way, and make sure to summarize the lessons
learned.
•Keep daily data backup, including daily application, database, document, etc.
Data security
Establish a backup mechanism to ensure that backup data is independent of
management
the production and office environment.
Data security guarantee mechanism
Create Customer Value 56 Create Customer Value 57
Strengthen Supply
Chain Management
To strengthen supplier management, we assess supplier performance using a variety of audit methods and
carry out targeted training of suppliers based on the assessment results and operational status every month to
standardize supplier behaviors.
Zhonggu Logistics understands that a good partnership is the basis for the long-term development. We carry out Supplier training
supply chain management in strict accordance with the Law of the People's Republic of China on Bid Invitation
and Bidding and other relevant laws and regulations, and ensure that both parties to commercial contracts carry
out their work in a compliant, uprightand honest manner by constantly improving the procurement system, During the reporting period, Zhonggu Logistics provided a variety of online and offline training courses
formulating and implementing the Zhonggu Logistics Supplier Management Measures, the Basic Rules for Bidding for more than 1,000 suppliers. The training on terminal operation, loading process, Luyun system
and Procurement, the Anti-Commercial Bribery Agreement and other rules and regulations, and standardizing the operation, delivery process, cross-strait intercommunication and other related content was provided for
bidding process. trailer suppliers to improve their delivery capability.
We have established a stricter review mechanism for land logistics fleet suppliers (important stakeholders in
Zhonggu Logistics' supply chain), clearly requiring all fleet suppliers to provide valid compliance documents such
as business licenses, road transport permits, operating certificates, etc. We have signed agreements on freight
forwarding, KPI assessment, safety and environmental protection, and anti- bribery. During the reporting period,
the Company updated and released the trailer bidding rules and related document templates and launched the
trailer bidding system.
Recovery of
receipts
Supplier training site
Supplier
Use rate of Mini-
Coordination assessment
program
dimensions
Situation of
complaints
Create a Harmonious Community 58 Create a Harmonious Community 59
Create a
Harmonious Promote Diversity
Community and Equality
Zhonggu Logistics actively assumes social responsibilities, lives up to the Zhonggu Logistics strictly follows the fair, impartial and non-discriminatory employment policy to ensure equal
corporate mission of "creating happiness for employees and creating value employment. We strive to promote the long-term development by creating and maintaining a diverse and equal
for the society", and always pays attention to the needs of employees. In employment environment, continuously expanding recruitment channels and strengthening talent management.
addition, we promote the development of employees, and continue to exert
our advantages while ensuring the smooth operation of the Company, giving
Employment
back to the society in the principle of "spreading love and sharing value".
We strictly follow the Labor Law of the People's Republic of China, the Labor Contract Law of the People's
Republic of China, the Law of the People's Republic of China on the Protection of Minors, and the Provisions on the
Prohibition of Using Child Labor, etc., uphold the fair, impartial and non-discriminatory employment policies and
legal employment principles, and strictly prohibit the employment of child labor or forced labor, having established
and improved the internal talent management system. During the reporting period, there were no violations of laws
and regulations related to child labor and forced labor.
We adhere to the principle of fair and equitable employment, strive to create a diverse and inclusive employment
environment, and constantly optimize the employee structure. As of the end of the reporting period, the Company
has a total of 1,455 employees, all of whom are full-time employees.
Gender diversity: We attach importance to workplace equality, advocate gender diversity in
the workplace, and provide equal development platforms and opportunities for male and female
employees. As of the end of the reporting period, the Company has a total of 1,061 male employees
and 394 female employees.
Age diversity: We support the influx of young people and value experienced backbone
employees. The Company has always actively built a diverse age composition. As of the end of th
reporting period, there are 781 employees under the age of 30, 616 employees aged between 31
and 50, and 58 employees over the age of 50.
Regional diversity: Our employees come from many cities across the country.
In addition, we respect the choice of employees. We will handle the resignation process in accordance with the law
when an employee chooses to leave. The overall employee turnover rate during the reporting period was 13.61%.
Create a Harmonious Community 60 Create a Harmonious Community 61
Diversity in Hiring
Campus presentation
Strictly following relevant laws and regulations, Zhonggu Logistics has formulated the Employee Handbook and
the Recruitment Policy to standardize the recruitment process. In order to continuously enlarge the Company's
During the reporting period, we held offline
talent force, we uphold the principle of diversity and equality in recruitment and have built a variety of recruitment
presentations at Wuhan University of Technology
channels. During the reporting period, we continued to expand campus recruitment channels, and attracted elite
and Fuzhou University, and online presentations
talents on campus through the "Future Star" management trainee project, campus presentations, and school-
at Tianjin University of Technology. In addition, in
enterprise cooperation.
November 2022, Zhonggu Logistics launched the
online presentation for 2023 autumn recruitment.
"Future Star" Management Trainee Project
Through several lectures, Zhonggu Logistics
In 2022, we launched the "Future Star" management trainee project of on-campus recruitment, aiming to cultivate not only provided jobs, but also promoted the
management reserve talents who are highly in line with the values of Zhonggu Logistics, pursue excellence, dare to corporate brand and corporate culture, so as to
fight, are full of passion, and are willing to grow together with the Company. facilitate the selection of talents who are more in
line with the values of Zhonggu.
The project pays attention to the training path and the qualifications of teachers, adopts the "one-year, three-stage"
training plan, and provides 1-2 years of special training for outstanding management trainees, so that they can
Online presentation for 2023 autumn recruitment of Zhonggu Logistics
quickly grow into the backbones of various departments/offices.
Campus Presentation
We recruit students on campus through both online and offline presentations.
School-Enterprise Cooperation
•Online presentations: Through the online release of the well-produced official video of the online presentation, it
fully demonstrates the corporate style of Zhonggu Logistics. Combined with the online application system, it has
By joining hands with various colleges and universities, we have established a good school-enterprise cooperation
achieved a substantial increase in the coverage of colleges and universities and the number of deliveries.
model, and directly recruit talents from the campus.
•Offline presentations: Zhonggu's brand is promoted through offline on-campus presentations in various colleges
and universities. While more jobs are provided, students can have a deeper understanding of Zhonggu Logistics.
In addition, through multiple offline interviews and communications, it is convenient for the Company to select
talents who are more in line with Zhonggu's values. School-enterprise cooperation
For a long time, Zhonggu Logistics and Fuzhou
University have had a good foundation for school-
enterprise cooperation. In order to consolidate
the school-enterprise cooperation and encourage
more Fuzhou University talents to join Zhonggu
Logistics, Zhonggu held the "2021-2022 School
of Economics and Management Scholarship
Award Ceremony of Fuzhou University" on
October 13, 2022. The issuance of this bursary
is an affirmation and reward for the hard work
of the excellent painstaking, progress-making
students of Fuzhou University, as well as an
encouragement for other students. It also marks
a new stage for the cooperation between the
university and the Company.
Award Ceremony of Zhonggu Logistics Scholarship
Create a Harmonious Community 62 Create a Harmonious Community 63
Talent Development
Attaching great importance to the cultivation of talents, Zhonggu Logistics has set up diversified career Zhonggu Logistics helped new employees quickly adapt to work and life. For the first time, the "online
development channels for employees to help them grow rapidly and realize their self-worth. Also, we are well aware + offline" training model was adopted to provide employees with 11 online courses and many offline
of the differences in the demands of different employees, and have created personalized training contents and courses, including post training, cultural value training, and external training for role transformation and
models for employees at different growth levels to achieve effective talent training by improving the talent training professional shaping.
mechanism continuously.
Welcome ceremony & high- Video shooting to showcase Reporting to become a
Talent Cultivation level meeting elegant demeanour regular employee
To help each employee realize their self-worth, we have established and continuously updated a diversified talent
training and management system according to the differences and demands of different employees, so as to
reserve corporate talents in an all-round way and promote employee development.
commendation ceremony for
Class committee election New employee training
Talent training and
management system
Management Measures New employee training
induction training system
for new employees
build a learning platform
Talent training and
management system
During the reporting period, we continued to improve the induction training system for new employees, issued the
New Employee Entry Guidelines, and revised it twice in June and September according to the actual situation, so
as to strengthen the refined entry management of employees. In addition, we also set up an online course platform
for all employees, developed 28 online learning courses, and set training goals based on employee needs, so as to
enrich their learning life and improve their professionalism.
Create a Harmonious Community 64 Create a Harmonious Community 65
During the reporting period, employee training covered a total of
A Warm Working Environment
representing an increase than 2021. The details are as follows:
Adhering to the tenet of "creating happiness for employees and creating value for the society", we provide
employees with a good working environment to enhance their sense of well-being and build multiple two-way
the employees and the Company to develop together.
Total number of trainees 1,630 persons 1,588 persons 3%
Office Environment
Average number of hours of training per employee 40.28 hours 24.52 hours 64%
We respect and appreciate the hard work of every employee and constantly improve the internal environment of
the Company while providing statutory benefits for employees. In 2022, we moved our office into a new 5A-level
Average number of Male 40.00 hours 24.51 hours 63%
office building where catering and fitness services are available to employees.
hours of training by
gender Female 40.98 hours 24.55 hours 67%
Top-level management 46.00 hours 31.92 hours 44%
Average number of
hours of training by Mid-level management 45.00 hours 29.68 hours 52%
employee type
Grassroots employees 39.67 hours 24.45 hours 62%
Employee Care Employee Communication
Employees are the most valuable asset of Zhonggu Logistics. We listen to the voice of every employee and try to
understand their appeals. Through diversified employee activities and assistance activities, we narrow the distance
We always put the protection of employees' rights and interests at the core and respect the opinions and feedback with employees and effectively help employees in difficulties. In a word, we are committed to creating a truly happy
ofevery employee. We effectively enhance employees' sense of belonging by providing employees with attractive workplace and enhancing employees' sense of belonging and identity.
salaries and benefits, creating an excellent working environment, and providing scientific and rigorous employee
We encourage and support employees to put forward constructive opinions and suggestions and listen to the voices
support plans.
of employees through various channels such as employee complaint mailboxes, telephone hotlines, and e-mails. In
addition, paying closer attention to the growth of employees, Zhonggu Logistics has implemented the "letter from
Attractive Salary System
home" system for a long time. By establishing a normal communication mode between top-level management and
employees, we keep abreast of employees' demands and assist them in self-review and summary.
Mutual Assistance between Employees
We continue to optimize the internal salary and welfare system and establish a system in which salaries of
employees are determined mainly based on their abilities and performance in light of the market salary level. To Always caring about the lives of employees, Zhonggu Logistics is committed to spreading the concept of caring and
fully motivate the employees, we continue to implement the second long-term incentive plan based on the original public welfare with employees as the core. For this reason, the "Zhonggu Logistics Love Fund" has been established
salary and welfare system. By linking the virtual stock with the employee's personal performance assessment, we to help employees in difficulties. During the reporting period, a total of 49 needy employees were subsidized,
allow the employees to obtain dividends at zero cost on a rolling basis. Compared with the first long-term incentive including 3 subsidies for the death of relatives, 3 subsidies for maternity, 35 subsidies for marriage, 7 subsidies for
plan, 136 new outstanding employees joined the partner team during the reporting period. illness, and 1 subsidy for hospitalization, with a total expenditure of 58,000 Yuan.
Create a Harmonious Community 66 Create a Harmonious Community 67
Fulfilling Spare Time
Caring for employees, we are committed to enhancing corporate cohesion and
improving employee happiness by organizing diversified employee activities. In
addition, we attach great importance to the occupational health and safety of
employees, trying to provide employees with a healthy and safe working environment
and improve the level of corporate health and safety management.
Employee Activity
We care for employees and strengthen their sense of belonging by carrying out a variety
of employee activities, including team building activities, festival activities, cultural and
entertainment activities, women's care activities, etc.
"Enjoy the Lantern Festival with
Expanded team building activities
Passion for Winter Olympics" theme Basketball Champions Cup Caring for female employees
in 2022
event
From June to September 2022, Zhonggu On February 15, 2022, the Headquarters of To promote the physical and mental health On International Women's Day on March 8,
Logistics carried out quality development Zhonggu Logistics held a themed event of of employees and relieve work pressure, the 2022, Zhonggu Logistics presented each female
and team building activities with various "Enjoying the Lantern Festival with Passion Headquarters of Zhonggu Logistics launched a employee with a red rose in gratitude for their
themes such as "working together to pursue for Winter Olympics". We carried out a variety basketball championship cup game on October hard work. In addition, we specially set up
the dream", and "physical and spiritual of sports and game activities for all Zhonggu 21, 2022. The competitors were divided into an "early spring reception wall" for them and
improvement for high-quality development of employees, allowing them to experience the four teams for the knockout round. The players presented them with exclusive red envelopes,
Zhonggu" to ease the pressure on employees unique atmosphere of the Winter Olympics participating in the competition wore red and so that female employees could receive unique
and enhance corporate cohesion and while celebrating the traditional festival. white team uniforms and sweated on the field, praise and blessings.
centripetal force. showing Zhonggu's demeanor.
Create a Harmonious Community 68 Create a Harmonious Community 69
Employee Health and Safety
Ship emergency drill
We attach great importance to the health and safety
of employees. By constantly improving internal safety
On August 18, 2022, Zhonggu Logistics organized a ship-shore joint emergency drill to examine employees'
management rules and occupational health protection
safety awareness and accident response capabilities by simulating a fire in the cabin during the voyage, so
systems, we hope to provide a safe and healthy workplace for
as to enhance employees' safety awareness and improve internal emergency response capabilities.
all employees in strict accordance with laws and regulations
such as the Safety Production Law of the People's Republic
of China and the Law of the People's Republic of China
on the Prevention and Control of Occupational Diseases.
Through the development of diversified safety and health
training courses, we try to enhance employees' awareness
of safety precautions and build a health and safety barrier in
an all-round way. During the reporting period, we completed
the annual inspection and certification of the occupational
safety and health management system.
Occupational safety and health
management system certificate
To enhance employees' safety awareness, we encourage employees to engage Emergency drill site
in safe production and organize the study of laws and regulations, interpretation
of internal policies, emergency drills and other safety awareness training. During
the reporting period, a total of 1,176 hours of safety training was provided to
employees.
Safe operation education
Since its establishment, Zhonggu
Logistics has accumulated a lot
of experience in production and
operation in strict accordance with
the production and operation safety
management rules, actively sharing
preventive measures for safe
production. In 2022, the Huangdao
Maritime Affairs Office held an
industry conference on the Review
of Oil Supply and Receiving Safety
Plan created by Zhonggu Logistics
and invited all relevant enterprises
and units in the jurisdiction to learn
from our advanced and complete
experience in safe operation so as to
prevent fuel leakage. Industry conference site
Create a Harmonious Community 70 Create a Harmonious Community 71
Since the occupational health and safety mechanism for employees
was improved continuously, there was no work-related death in
Zhonggu Logistics during the reporting period, and the total number
of work injuries dropped significantly compared with 2021. The details
are as follows:
Number of work-related deaths in the past three years 0 person 0 person -
On July 13, Zhonggu Logistics donated student
Days of work lost due to occupational injuries 12 days 102 days 88% On March 8, Zhonggu Logistics went to Rulin No.
stationery to a complete primary school in Pupeng
Village, Shanyang Town, Yongping County, Yunnan
Days of work lost due to occupational injuries per million Chinese Yuan 0.0008 days 0.08 days 99% Guangdong Province to give condolences to special
Province, and granted scholarships to outstanding
children and special education teachers.
student representatives.
Work injury rate 0.07% 0.14% 50%
Number of work-related injuries 1 person 2 persons 50%
Care for Children in Need
Number of work-related accidents 1 2 50% It is the common responsibility of all sectors of society to create a safe, worry-free, caring, and healthy growth
environment for children in need. Focusing on poor children and special children groups, Zhonggu Logistics
has taken a series of child care actions in depth, constantly improved the "warmth", "depth" and "strength" of
children's care services, and taken practical actions to be the guardian and dream builder of children.
Support Public Welfare
Undertakings
While pursuing self-development, Zhonggu Logistics extensively participates in public welfare undertakings, and
actively feeds back the society in a responsible manner. The Company continues to exert its strength as a leading
enterprise in the container logistics services for domestic trade, sends warmth to the society through a series of
diverse and colorful public welfare projects such as "caring for children in need", "supporting anti-epidemic efforts"
and "helping disaster relief", and helps employees to realize their value. During the reporting period, Zhonggu
Logistics donated a total of 1 million Yuan, while our employees provided voluntary services for about 86,000 hours,
and each employee contributed about 59 hours of voluntary services.
Help Disaster Relief
Disasters are merciless but people are sympathetic. Zhonggu Logistics actively fulfills its social responsibilities by
donating to the disaster-stricken areas. In 2022, Zhonggu Logistics successively signed a letter of intent to donate
with the Shanghai Charity Foundation and the International Committee for the Promotion of Chinese Industrial
Cooperatives and made donations worth 1 million Yuan.
Start a Sustainable Business 72 Start a Sustainable Business 73
Start a Sustainable Corporate Governance
Business Zhonggu Logistics improves its corporate governance in an all-round way in strict accordance with the requirements
of such laws and regulations as the Company Law of the People's Republic of China, the Code of Corporate
Against a backdrop of new situation of economic development and Governance of Listed Companies, the Guidelines for Introducing Independent Directors to the Board of Directors of
changes at home and abroad, Zhonggu Logistics decided to step up Listed Companies, the Rules for the Shareholders' Meetings of Listed Companies and the Guidelines for Articles of
our entire logistics efforts through a "landing strategy" incorporating Association of Listed Companies. The Company gives full play to the role of the Board of Directors and specialized
all kinds of resources to provide clients with "door- to-door" logistics committees in corporate governance. The general meeting of shareholders, the Board of Directors, the Board of
solutions and perfect our "last mile service". We continue to improve Supervisors, and the managers earnestly perform their duties and strictly abide by the procedures for operation.
the level of corporate governance by creating a clean and honest The Board of Directors of Zhonggu Logistics consists of nine members, including six executive directors and three
corporate culture and operating model amid legal and compliant independent non-executive directors.
operations, and strengthening the assessment and control of various
operational risks, so as to lay a solid foundation for sustainable
development.
Shareholders'
meeting
Board of Board of Directors
Supervisors
Strategy Compensation
Nomination
Development and Appraisal Audit Committee
Committe
Committee Committee
Governance structure of Zhonggu Logistics
The Company continuously optimizes corporate governance by taking multiple measures, having further improved
operational efficiency by executing various tasks in a reasonable manner according to the plan.
Start a Sustainable Business 74 Start a Sustainable Business 75
Improve the corporate governance structure and a long-term compliance Business Ethics
management mechanism, and ensure compliance with the "Three Meetings"
Zhonggu Logistics insists on "creating a deterrent against corruption, preventing corruption and building moral
Establish a communication platform to create an efficient and coordinated defenses against corruption", and ensures the integrity of the Company with a comprehensive supervision system.
workflow and operating mechanism We have formulated anti-corruption rules such as the Management Measures for Combating Corruption and
Zhonggu Logistics' Upholding Integrity, and the Management Measures for Accountability for Dereliction of Duty and Violation of
measures to optimize Regulations to strengthen management through institutional improvement. The Company has set up a steering
corporate governance Relying on the internal control system, improve the internal control group that aims to address corruption and enhance integrity with the chairman of the company as the chair and
and risk control procedures, and clarify the main responsibilities and directors as deputy chairs. The group members consist of heads of various departments, regions and wholly-owned
management methods subsidiaries to coordinate the clean governance and anti-corruption. The Company attaches great importance to
the positive role of supervision and reporting in anti-corruption, actively expands the supervision and reporting
channels, and has set up internal and external reporting mechanisms, encouraging internal and external personnel
Promote personnel training and study of laws and regulations, manage to report any violations of regulations and disciplines directly through the chairman's mailbox.
information of rights and interests, regularly report information, conduct field
research, and strengthen the role of independent directors and intermediaries Zhonggu Logistics has established an internal audit department under the Audit Committee, which is responsible
for auditing, supervising and inspecting the Company's main business activities, and further improving the anti-
corruption system. In 2022, we conducted business audits on the marketing departments of the Northeast Region
and Shandong Region, put forward rectification requirements for problems in compliance operations, internal
management, risk prevention and control, etc., and followed up the rectification situation. As of the end of the
reporting period, Zhonggu Logistics had no corruption lawsuits.
Compliance Operation Zhonggu Logistics' anti-corruption training
On September 14, 2022, Zhonggu Logistics
organized online and offline anti-corruption
Zhonggu Logistics has formulated a series of internal regulations in accordance with the Company Law of the
t ra i n i n g f o r n e w e m p l o y e e s a n d t h e
People's Republic of China and other laws and regulations as well as industry guidelines, to ensure legal and
Company's middle and senior leaders to
compliant operation and also long-term and stable development. For key areas such as cost control and asset
help employees establish a sense of integrity,
management, the Company has designed control indicators such as ship's load rate, port stay duration, and direct
improve their abilities to consciously resist
docking rate to strengthen compliance management in an all-round way.
corruption, and comprehensively promote a
We have established a complete compliance system and provided compliance training for directors, supervisors clean and honest atmosphere.
and senior managers. We follow the regulatory requirements in a timely manner. In case of any policy change, we
analyze the specific content in a timely manner, evaluate the impact on the Company and propose adjustment
measures, and promptly notify relevant departments to provide special training.
Zhonggu Logistics' anti-corruption training for new employees
Start a Sustainable Business 76 Start a Sustainable Business 77
Risk Management Perfect the risk management and control system
•Create and publish an internal control manual, define and standardize the job responsibilities and
procedures for each position in the Collection of the Internal Control Systems of Shanghai Zhonggu
Risk management is crucial to the sustainable development of the Company. Zhonggu Logistics focuses on building
Logistics Co., Ltd, and strengthen internal control training, to improve internal control capabilities.
a system while strengthening risk assessment, control and early warning mechanisms to make new breakthroughs
in our system and capacity for governance.
Identify responsibilities & hold the persons concerned accountable
General Manager,
Disciplinary Inspection
Committee •For huge direct economic losses caused by serious maritime accidents that occur frequently as well as the
subsequent loss for detention, client claims, forced tugging and other indirect losses that are difficult to
Team leader
estimate, identify the management responsibilities of the persons concerned and hold them accountable;
any serious dereliction of duty found shall be punished by notice of criticism and dismissal.
Strengthen risk management assessment measures
Person in charge of Person in charge of each
Heads of each center each region wholly-owned subsidiary
•Incorporate risk management indicators into key KPI assessment, internal control evaluation, comprehensive
Team member Team member Team member
competitiveness and other indicators, and urge each center and department to further improve risk and
internal control management.
Risk control construction team of Zhonggu Logistics
The Company's risk control working group is fully responsible for risk management and internal control. We have Risk management measures of Zhonggu Logistics
formulated the Internal Control and Risk Management Regulations and published three volumes of internal control
system manuals (Vol I, Vol II and Vol III) to actively promote the institutionalization and systematization of internal
control. In 2022, the Company set risk management and internal control work objectives, evaluated and audited
internal control work, disclosed the internal control evaluation report, and found no major deficiencies in internal To eliminate or reduce the possibility of risk events, or to mitigate the loss caused by such events, Zhonggu Logistics
control. organized regular staff training on risk control to strengthen their risk prevention awareness and professional skills.
In 2022, we held a total of 4 special training sessions and multiple case sharing sessions. We also released relevant
training videos through the Company's online training platform "E-school", covering all employees.
Improve the authenticity
Ensure that the Company's
Maintain the security and completeness of
business is legal and
of company assets various reports and related
compliant
information
Optimize process and Detect errors, correct frauds, Promote business
improve efficiency and prevent corruption development
Risk management and internal control objectives
Appendix 78 Appendix 79
Appendix
Environment
GRI 302: Energy 2016
Annual Features
Climate and Energy
GRI 303: Water and Effluents 2018
GRI index
GRI 305: Emissions 2016
From January 1 to December 31, 2022, Shanghai Zhonggu Logistics Co., Ltd. reported 305-4 GHG emissions intensity Climate and Energy
Instructions for use
the information cited in this GRI index with reference to the GRI standard.
Annual Features
GRI 1 GRI 1: Basics 2021 305-5 Reduction of GHG emissions
Climate and Energy
Disclosure GRI 306: Waste 2020
Title of disclosure Chapter
issue/item 306-1 Waste generation and significant waste-related impacts Waste Management
GRI 1: Foundation 2021 306-2 Actions taken to prevent waste generation Waste Management
GRI 2: General Disclosures 2021 306-3 Composition of waste generated Waste Management
The organization and its reporting practices 306-5 Disposal operations Waste Management
Activities and workers GRI 403: Occupational Health and Safety 2018
Governance 403-3 Guidance for Disclosure Employees Care
Strategies, policies and practices 404-1 Average hours of training per year per employee Talent Development
Stakeholder engagement GRI 405: Diversity and Equal Opportunity 2016
GRI 3: Material Topics 2021 GRI 406: Anti-Discrimination 2016
GRI 201: Economic Performance 2016 GRI 409: Forced or Compulsory Labor 2016
GRI 205: Anti-corruption 2016 GRI 414: Supplier Social Assessment 2016
Appendix 80 Appendix 81
Performance Summary
By age 31-50 Person 616
Chinese mainland Person 1,455
By region Hong Kong, Macao and Taiwan Person -
Environment Overseas Person -
Employee Turnover Rate
Issue Indicator Unit 2022
Overall turnover rate Turnover rate % 13.61
Gasoline kWh 1,431,532
Male % 11.45
Diesel kWh 288,077,799 By gender
Female % 19.45
Low sulfur fuel oil kWh 2,989,788,959
Lube oil kWh 27,153,755
By age 31-50 % 9.42
Energy consumption Total direct energy consumption kWh 3,306,452,045
Electricity kWh 1,614,100
Chinese mainland % 13.61
Indirect energy consumption intensity kWh 1,614,100
By region Hong Kong, Macao and Taiwan % -
Total energy consumption kWh 3,308,066,145
Overseas % -
Total energy intensity kWh/(1 million Chinese Yuan) 232,816
Occupational Health and Safety
Scope 1 GHG emissions Tonne of CO2 equivalent 885,730
Death Number of work-related deaths Person -
Scope 2 GHG emissions Tonne of CO2 equivalent 579
GHG emissions Person//(1 million Chinese
Total GHG emissions Tonne of CO2 equivalent 886,309 Number of work-related deaths per million Chinese Yuan -
Yuan)
Tonne of CO2 equivalent/
GHG emissions intensity 62.38 Days of work lost due to occupational injuries Day 12
(1 million Chinese Yuan)
Days of work lost due to occupational injuries per million
Total water consumption Tonne 74,958 Work-related injuries Day//(1 million Chinese Yuan) 0.0008
Chinese Yuan
Water consumption intensity Tonne/(1 million Chinese Yuan) 5.28
Injury rate % 0.07
Water resources Freshwater consumption Tonne 74,958
Number of work-related injuries Person 1
Total water recycling and reuse Tonne 120
Number of work-related accidents No. 1
Water cycle and reuse rate % 0.16
Number of safety trainees Number of trainees participating in safety training Person 49
Total wastewater discharge Tonne 16,414
Wastewater Total hours of employees
Total hours of employees participating in safety production
Wastewater discharge intensity Tonne/(1 million Chinese Yuan) 1.16 participating in safety Hour 1,176
training
production training
Nitrogen oxides Tonne 17,678
Number of safety drills Number of safety drills No. 5
SOx Tonne 2,467
Development and Training
Waste gas Particulate matter Tonne 422
Total number of trainees Total training person-times Person 18,545
Total waste gas emissions Tonne 20,567
Total number of trainees Total number of people trained Person 1,630
Exhaust emission intensity Tonne/(1 million Chinese Yuan) 1.45
Total investment in employee training Ten thousand Chinese Yuan 268
Total amount of hazardous waste Tonne 1,359
Investment in employee Employee training investment per million Chinese Yuan Ten thousand Chinese Yuan 0.02
Intensity of hazardous waste Tonne/(1 million Chinese Yuan) 0.10
Wastes training
Ten thousand Chinese Yuan/
Total amount of harmless waste Tonne 706 Average employee training and development investment 0.18
person
Intensity of harmless waste Tonne/(1 million Chinese Yuan) 0.05
Employee training coverage Total coverage % 100
Consumables Amount of paper used Tonne 12
Male Person 1,165
Total investment in environmental protection Ten thousand Chinese Yuan 2,611 Number of trainees by gender
Investment in Female Person 465
environmental protection Proportion of total investment in environmental
% 0.18 Percentage of training by Male % 71.47
protection to operating income
gender Female % 28.53
Society Top-level management Person 56
Number of trainees by rank Mid-level management Person 119
Issue Indicator Unit 2022
Rank & file Person 1,455
Number of employees
Top-level management % 3.44
Total number of employees Number of employees Person 1,455
Percentage of training by rank Mid-level management % 7.30
Permanent employees Person 1,455
Rank & file % 89.26
By type of employment Dispatched labor Person -
Average number of hours of
Average number of hours of training per employee Hour 40.28
Part-time employee Person - training per employee
Male Person 1,061 Male Hour 46,600
By gender
Female Person 394 Female Hour 19,056
Total training hours of
Top-level management Person 50 Top-level management Hour 2,576
employees
By rank Mid-level management Person 128 Mid-level management Hour 5,355
Rank & file Person 1,277 Rank & file Hour 57,725
Appendix 82 Appendix 83
Average number of hours of Male Hour 40.00
Governance
training by gender Female Hour 40.98
Top-level management Hour 46.00 Issue Indicator Unit 2022
Average number of hours of Average tenure of board members Year 5.89
Mid-level management Hour 45.00
training by rank
Rank & file Hour 39.67 Turnover rate of directors and supervisors % -
Compensation and Revenue Proportion of independent directors % 33.33
Salary per capita Ten thousand Chinese Yuan 24.48 Standard board members' age Year 9.31
Compensation and revenue
Income per capita Ten thousand Chinese Yuan 976.56 Proportion of female directors % 11.11
Supply Chain Number of board meetings No. 9
Directors, supervisors and Top- Attendance of board members % 100
Total number of Suppliers Total number of suppliers No. 3,880
level management
Chinese mainland No. 3,789 Number of directors attending less than 75%
% -
of meetings
By region Hong Kong, Macao and Taiwan regions No. 26
Number of Audit Committee meetings No. 6
Overseas No. 65
Strategy Development meetings No. 3
Products and Services
Number of Compensation and Appraisal
Recall Number of incidents recalled for safety and health reasons No. - No. 1
Committee meetings
Number of complaints received about products and Number of Nomination Committee Meetings No. 1
No. 146
services
Amount of products sold to related parties Ten thousand Chinese Yuan 6,994.96
Handling rate of complaints received about products and
Complaint % 100 Scale of products sold to related parties per
services Ten thousand Chinese Yuan 0.49
million Chinese Yuan
Number of customer complaints per million Chinese Yuan No. /(1 million Chinese Yuan) 0.01
Amount of products purchased from related
Customer satisfaction % 95 Ten thousand Chinese Yuan 84,933.27
parties
Intellectual Property Procurement scale of products from related
Ten thousand Chinese Yuan 5.98
Patent Number of patent applications No. 146 parties per million Chinese Yuan
Trademark Number of trademarks held No. 3 Provision of balance of funds to related parties Ten thousand Chinese Yuan -
Software copyright No. 12 Amount of funds provided to related parties per
Equity and shareholders Ten thousand Chinese Yuan -
Copyright million of revenue
Number of software titles per million Chinese Yuan No. /(1 million Chinese Yuan) 0.0008
The scale of funds provided by related parties
R&D and Innovation Ten thousand Chinese Yuan -
to listed companies
Number of R&D employees Person 59 The scale of funds provided by related parties
Ten thousand Chinese Yuan -
R&D staff ratio % 4 to listed companies per million of revenue
Research and development The total shareholding ratio of the top ten
R&D investment Ten thousand Chinese Yuan 1,897 % 76.13
shareholders
R&D investment as a percentage of revenue % 0.13
Executive shareholding ratio % -
Community Charity
Stock pledge Ratio % 0.26
Donations outside the community Chinese Yuan 1,000,000
Top-level management Person 56
Investment in community activities for public good Chinese Yuan 7,025 Number of trainees participating
in compliance (anti-corruption) Mid-level management Person 119
Community public welfare investment per million Chinese training
Yuan/(1 million Chinese Yuan) 0.49 Rank & file Person 1,455
Public welfare Yuan
Employee volunteer hours Hour 86,400 Top-level management % 3.44
Percentage of employees who
Employee volunteer hours per employee Hour 59 participated in compliance (anti- Mid-level management % 7.30
corruption) training
Social contribution per share Chinese Yuan 3.94 Rank & file % 89.26
Report Evaluation and Suggestions 84
Report Evaluation
and Suggestions
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