Stock code:603565
Environmental, Social
and Governance Report
Shanghai Zhonggu Logistics Co., Ltd.
Table of Contents
Preface 2 Creating a Harmonious Community 54
About the Report 2 Diversity and Equity 55
Zhonggu Logistics at a Glance 6 Talent Development 58
Course and Glories 9 Caring for Employees 61
Health and Safety 65
Annual Features 13
Rural Revitalization and Welfare 67
Strengthening ESG Governance 18
Compliance in Operation 70
ESG Governance System 19
Corporate Governance 71
Response to Sustainable Development Goals 23
Business Ethics 72
Leading in Low-carbon Shipping 25 Risk Management 74
Climate Change Management 26
Index 76
Low-carbon Sailing 32
Index to the Guidelines No. 14 of Shanghai Stock Exchange
Deeply Exploring Customer Value 40 for Self-Regulation of Listed Companies—Sustainability
Building Excellent Service 40 Report (Trial) 76
Digital Shipping Transformation 48 GRI Index 77
Strengthening Supply Chain Management 52 Performance Summary 79
Reporting Evaluation and Suggestions 82
Preface 2 Preface 3
Preface
Introduction to the Report
This is the Environmental, Social and Governance
("ESG") report of Shanghai Zhonggu Logistics
About the Report
Co., Ltd. (hereinafter referred to as "Zhonggu
Logistics", "we" or"the Company"). The ESG
report comprehensively describes the economic,
environmental and social performance and
management initiatives of Zhonggu Logistics
in 2024, focuses on the common concerns of
stakeholders, and discloses the key information
of the Company and its subsidiaries (collectively
referred to as "the Group").
Reporting Time
From January 1, 2024 to December 31, 2024
(referred to as the"reporting period"); some
information and cases might beyond the reporting
period.
Reporting Scope and Boundaries
The Report covers Shanghai Zhonggu Logistics
Co., Ltd. and all of its subsidiaries, with the
same reporting scope as the 2024 Annual Report
(hereinafter referred to as the "Annual Report").
Notes on Data
The financial data herein comes from the
consolidated report for 2024, which have been
independently audited by Pan-China Certified
Public Accountants LLP(specialized general
partnership); the remaining of the information and
data are mainly sourced from the Company and the
Group' s internal statistical reports or documents.
The monetary amounts indicated herein are
denominated in RMB.
Reference Standards
This report has been prepared with reference
to the "Guidelines No. 14 of Shanghai Stock
Exchange for Self-Regulation of Listed Companies—
Sustainability Report (Trial)" issued by the Shanghai
Stock Exchange (referred to as the "SSE") and with
appropriate reference to the GRI Standards by the
Global Reporting Initiative (GRI).
Confirmation and Approval
The Report was approved by the board of directors
on March 28, 2025 following the confirmation by the
management.
Preface 4 Preface 5
Message from
environment. At the same time, we place employee training and development at the
forefront. In 2024, we actively conducted both internal and external training programs,
the Chairman
including onboarding sessions for new employees, a comprehensive training system for
existing staff, and executive lectures tailored to specific needs. These initiatives continuously
support employee growth, providing robust talent support for the Company's sustainable
development.
Zhonggu Logistics is actively advancing “sea-rail” intermodal transportation, achieving
Zhou Bin a groundbreaking “Through Bill of Lading (B/L) System”in the fullest sense. By
——Chairman of Zhonggu Logistics redefining standardized processes and establishing a digital collaborative platform, we
have significantly enhanced the efficiency of logistics chain coordination. We continue to
push forward with the construction of hub logistics parks, and the gradual completion and
operation of multimodal logistics parks in Rizhao, Qinzhou, and Xiamen will facilitate the
rapid implementation of end-to-end logistics services. We are committed to accelerating the
As a pioneer and steadfast player in the field of domestic container logistics in China, pace of “bulk to container”. This initiative not only contributes to achieving the carbon
Zhonggu Logistics has always forged ahead with the spirit of an innovator. Amidst the peaking and carbon neutrality but also makes a significant impact in addressing global
waves of industrial transformation, we continuously refine our original intention of climate change.
“Changing China's Logistics with Containers” and product values of “Safe, Efficient,
and Green,” committing ourselves to providing customers with comprehensive container we constantly create value and distribute dividends to stakeholders. In 2024, we plan to
logistics solutions. For over two decades, we have consistently aimed to build a symbiotic distribute dividends of RMB 1.66 billion (tax inclusive), accounting for 90.39% of the net
and win-win logistics ecosystem. Facing the challenges of our times, we constantly profit gained over the same period, providing investors with solid and stable cash returns.
break through business boundaries, reshaping service chains with a digital mindset, Building on the Return Plan for the Next Three Years implemented in the previous reporting
and transforming the standardized advantages of containers into incremental value for period, we will continue to maintain an active cash dividend policy from 2023 to 2025,
our customers. On the journey of fulfilling corporate responsibilities, we have always ensuring that the cumulative dividends over the three years will not be less than 60% of the
used the creation of shared value as a bond, weaving a development network of shared distributable profits, allowing all shareholders to share in the Company's growth.
responsibilities and opportunities with our partners. Standing at a new developmental
coordinate, we are setting our course with a broader vision, committed to making every Looking ahead to 2025, Zhonggu Logistics will focus on the development theme of
journey carry the warmth of industry progress through the continuous optimization of “deepening internal reforms to enhance efficiency and pursuing external blue ocean
service capabilities and the deepening of governance innovation. strategies for growth.” We will prioritize business innovation and cost reduction to improve
efficiency, actively respond to external challenges and uncertainties, and continue to pursue
Zhonggu Logistics upholds the long-term employee vision of “helping employees achieve high-quality development through relevant business activities. In the future, we will adopt a
ambitions in fun and through learning.” We strictly safeguard the legitimate rights and more open approach to weaving our logistics network, transforming steel vessels into green
interests of our employees and thoughtfully organize regular team-building activities and links that connect ecosystems and economies, and in every departure and docking, we will
holiday celebrations to enrich their cultural lives and strengthen their sense of belonging inscribe the era's annotations of sustainable development.
to the Company. Through diverse initiatives, we foster a stable and harmonious working
Zhonggu Logistics at a Glance 6 Zhonggu Logistics at a Glance 7
Company Profile
Zhonggu Logistics Zhonggu Logistics is one of the first companies in China specializing in container shipping in
at a Glance
the domestic trade sector. It was listed on the SSE in September 2020 (603565.SH). Since its
inception, the Company has been offering clients from industrial and agricultural commerce
safe, efficient, green, and convenient whole-process multimodal transport services, powered
by standard containers and big data, championing the corporate mission of "Changing China's
Logistics with Containers" with steady development. Zhonggu Logistics has grown into a
comprehensive modern enterprise that integrates the business of liner transport, comprehensive
logistics, ship management, entity investment, etc.
As of the end of the reporting period, Zhonggu Logistics has extended its services across nearly
standard containers (general cargo containers, food-grade SQ containers, and coal containers) as
well as specialized units such as reefer containers, flat racks, and open-top containers, capable of
transporting over 10,000 types of goods. Complementing its core waterway operations, Zhonggu
Logistics has integrated railway and highway resources to deliver comprehensive multimodal
transport services encompassing sea-land transportation, river-sea coordination, water-to-water
transshipment, sea-rail intermodal services, along with specialized cold chain logistics solutions.
Having established one of China's most extensive maritime logistics networks, the Company
connects coastal regions with the Yangtze and Pearl River systems through its "Three Horizontal
& One Vertical" strategic layout. It maintains leading market positions in domestic container
throughput at numerous coastal and Yangtze River ports.
As one of China's earliest specialized companies engaged in coastal container transportation,
Zhonggu Logistics has consistently ranked among the top three domestic container shipping
operators by fleet capacity. Currently implementing its transformative "Landing Strategy",
the Company is advancing full-process logistics capabilities to provide complete door-to-door
logistics solutions, further strengthening its core competitiveness in the industry.
Zhonggu Logistics at a Glance 8 Zhonggu Logistics at a Glance 9
Business Layout
Cultural Course and Glories
Values
Sustainability Course
Since its establishment, Zhonggu Logistics has always regarded "culture
first" as its strategic gene, building its core competitiveness with corporate
Formed an initial scale from 2010 to 2013
culture as the core. Over the past two decades, we have continuously
promoted the dynamic evolution and deepening of the cultural system
In 2011, key routes including "Shanghai-
through strategic upgrades and organizational transformation, constantly In 2010, Zhonggu Logistics was officially Guangzhou", "Qingdao Xiamen", "Qingdao
rejuvenating the vitality of the culture. This cultural system, through four established. Its controlling shareholder Zhonggu Guangzhou", "Taicang-Guangzhou", and "Rizhao
functional modules of value orientation, organizational cohesion, behavior Shipping is one of the first companies in China Guangzhou" were successively opened, marking that
specializing in container shipping in the domestic Zhonggu Logistics became one of the first companies
shaping, and talent motivation, has formed the internal driving force for the trade sector in China specializing in container shipping in the
development of the enterprise, becoming the core engine for leading the domestic trade sector that opened boutique routes
implementation of strategies and improving organizational efficiency.
Strategic transformation from 2014 to 2016
Corporate Purpose: Bringing happiness to employees and creating value for the society
In 2016, big ships were
In 2017, the direct-to-customer
introduced from "Zhonggu
In 2015, Shanghai Zhonggu strategy was launched, realizing
Shandong", "Zhonggu Liaoning",
Corporate Mission: Changing China's Logistics with Containers Logistics Co., Ltd. was the transformation of service
etc., to improve the single ship
established objects from freight forwarders
load and shipping efficiency and
to direct customers
Corporate Vision: Leading the development of China's logistics, serving the society, and reduce shipping costs
empowering employees
New development from 2017 to 2021
Client Vision: Making customers the most competitive players in their industries
In 2017, strategic investors In 2019, with implementation of In 2021, further
Staff Vision: Helping employees achieve ambitions in fun and through learning In 2020,
such as Softbank China the multimodal transport strategy, expanded transport
Venture Capital (SBCVC form a multimodal transport officially listed capacity and
Corporate Pursuit: First-class company, First-class talent, First-class performance, Softbank China Capital), logistics platform, and the industrial on A-share enhanced core
First-class return YTO Express、 Shanghai tentacles were extended from the main board competitiveness in
FTZ Fund,、East Bell economic hinterland of coastal and (603565. SH) a new development
Venture Capital and GLP riverside provinces and cities to the period
Business Style: Serious, Agile, Responsible for results were introduced inland areas
Core Values: Loyalty, Sincerity, Diligence A new future in 2022-2024
Customer Values: We pursue customer satisfaction
of"shipping loose cargo via containers"was implemented in an orderly manner
Product Values: Safe, Efficiency, Green delivered in succession in the first half of 2024
Talent Values: Action precedes achievements, contribution precedes value L System" for container multimodal transport, achieving a groundbreaking "Through B/L System"
Zhonggu Logistics at a Glance 10 Zhonggu Logistics at a Glance 11
Sustainability Rating Return to Shareholders
•Wind ESG Rating : A
In the past few years of rapid growth, we always
•Sustainalytics Rating Score : 22.7
on September 25, 2020, the Company has distributed
cash dividends to shareholders, and the cumulative
cash dividends reach up to 7.205 billion RMB.
The cash dividend amounted
to RMB 1,512 million (tax
inclusive)
The cash dividend
amounted to RMB 1,659
million (tax inclusive)
The cash dividend amounted
to RMB 1,438 million (tax
inclusive)
The cash dividend amounted
to RMB 2,015 million (tax
inclusive)
The cash dividend
amounted to RMB 600
million (tax inclusive)
The Wind ESG Rating system categorizes companies into seven tiers (CCC, B, BB, BBB, A,
AA, AAA) based on score ranges, evaluating ESG risks and opportunities inherent to their
respective industries while benchmarking performance against sector peers.
Sustainalytics' ESG risk ratings are determined through quantitative assessment of corporate
ESG exposure, classifying enterprises into five risk tiers (Negligible Risk, Low Risk, Medium
Risk, High Risk, Severe Risk) proportionate to risk magnitude, where higher rating scores
indicate greater risk exposure.
Zhonggu Logistics at a Glance 12 Annual Features 13
Key Performance
Economic
Annual Features
Indicators Unit 2024 2023
Total TEU capacity Tons Approx. 3.39 million Approx. 3.51 million
Container inventory TEUs Approx. 410,000 Approx. 470,000
Shipping volume TEUs Approx.11.29 million Approx.15 million
Operating income RMB 11,258,253,186 12,438,791,418 Under the guidance of the national call,
"to speed up the building of a modern
Net income attributed to shareholders RMB 1,835,400,630 1,717,277,555 comprehensive transport system that
is safe, convenient, efficient, green
Income tax expense RMB 615,559,193 560,333,171
and economical", Zhonggu Logistics
Audited basic earnings per share RMB/share 0.87 0.82 has broken through the industry pain
points with innovative power. In 2024,
Cash dividend RMB 1,659,049,851 1,512,045,434 it launched the "Through Bill of Lading
(B/L) System" reform of multimodal
Dividend payment rate % 90.39 88.05
transport, becoming a benchmark
practice for promoting the construction
Environmental
of a strong transportation country. As
Indicators Unit 2024 2023 the core carrier of the "bulk to container"
strategy, Zhonggu Logistics integrates
Ton of CO2 equivalent/ shipping, port, railway and highway
GHG emissions intensity 71.94 80.95
million RMB
resources to create an inland container
Energy intensity kWh/million RMB 273,664 301,242.42 multimodal transport system that is
"integrated with shipping, port, station
Generation intensity of hazardous waste Ton/million RMB 0.12 0.12 and network, efficient, intelligent and
Generation intensity of non-hazardous standardized". It realizes the unification of
Ton/million RMB 0.04 0.05
waste orders and related documents in the whole
chain, seamless service connection and
Water consumption intensity Ton/million RMB 8.57 8.16
significant improvement in efficiency. Our
breakthroughs in the "bulk to container" and multimodal transport projects also verify the breakthrough
Social
value of "Through B/L System" in reducing logistics costs and shortening delivery cycles and promote the
Indicators Unit 2024 2023 "dual carbon goals" with low-carbon transformation by optimizing the transportation structure to reduce
carbon emission intensity and empowering the standardization process of the industry with intelligent
Total training input RMB10,000 295 290 upgrading.
Average hours of training for employees Hour 51.15 44.28
Number of complaints received about
No. 65 170
products and services
Donations RMB 408,804 200,000
Employee volunteer hours Hour 3,797 12,000
Social contribution per share RMB/share 1.50 1.65
Annual Features 14 Annual Features 15
•During the reporting period, Zhonggu Logistics saved about 222,462
tons and 1,402,737 tons respectively compared with all rail transport
Effectiveness of and road transport through "bulk to container" mode;
Carbon Reduction •During the reporting period, Zhonggu Logistics reduced carbon
emissions by 2,270 tons through the project of optimizing the
longitudinal inclination of ships.
In the field of green ships, Zhonggu Logistics takes "full life cycle green management" as its orientation and builds
a systematic green ship operation system. the Company has made breakthrough progress in green ship technology
innovation. By implementing the ship trim optimization project, it effectively saves fuel use and sets a benchmark
for the sustainable development of the industry. Zhonggu Logistics practices its commitment to green development
with concrete actions and continues to lead the logistics industry towards a greener and lower-carbon future.
Improved Efficiency and
Higher Speed
On November 22, 2024, the X9622 train carrying 3,000 tons of aluminum rods arrived at Tianjin Port from Zhundong
Station in Xinjiang Uygur Autonomous Region. The goods were then loaded onto the Zhonggu Logistics container
Low-carbon co-creation
liner bound for Dongguan Port in Guangdong Province. This shipment was jointly carried by China Railway
Urumqi Group Co., Ltd., a subsidiary of China State Railway Group, and Zhonggu Logistics. This marked a historic
breakthrough in China's multimodal transport "Through B/L System" service, achieving seamless integration
throughout the entire transportation process with “a single consignment, a single bill of lading, a single container,
and a single settlement”.
Zhonggu Logistics always adheres to the concept of green development. Through the innovative application of the
efficient transportation mode of "bulk to container" and green ship technology, it has significantly improved logistics Compared to traditional transportation methods that involve multiple steps and procedures, multimodal transport
efficiency and greatly reduced carbon emissions, effectively promoting the green transformation of the industry. mode "Through B/L System" service integrates various modes of transportation, achieving seamless connection
and unified scheduling throughout the entire process. This significantly reduces transfer time, human resource
Zhonggu Logistics fully leverages the unique advantages of the "bulk to container" transportation mode, deeply consumption, and operational costs, making cargo transportation faster and more efficient. By scientifically
optimizes the transportation structure, fully leverages the advantages of waterway transportation in being low- matching train schedules with waterway shipping schedules, multimodal transport mode "Through B/L System"
carbon and environmentally friendly, effectively reduces the high energy consumption and high emissions problems service optimizes the utilization of railway capacity and waterway space, minimizing the total transportation
of traditional road transportation, and realizes the reduction of carbon emissions in the transportation link, providing time and ensuring efficient and timely delivery of goods. Additionally, multimodal transport mode "Through B/L
strong support for the acceleration of the green and low-carbon transformation of the transportation industry. System" service achieves integrated management of the entire transportation process, including planning, tracking,
and settlement. With a standardized multimodal transport mode bill of lading, customers only need to place one
According to data released by the National Bureau of Statistics, China's cargo turnover reached 25448.6 billion order to enjoy seamless service from start to finish, greatly simplifying logistics processes, improving transportation
ton-kilometers in 2024. If all were transported by waterway, it would consume 65.96 million tons of standard coal efficiency, and providing an excellent logistics experience for customers.
and emit 165 million tons of CO2. Compared with road and rail transport, inland container waterway transport
has stronger energy-saving and emission-reduction capabilities and makes greater contributions to ecological Zhonggu Logistics has focused on key bottlenecks and challenges in logistics efficiency and cost optimization. It
protection. actively promotes mutual recognition and interoperability of standards for cargo names, box types, packaging, etc.,
and orderly connects railway and waterway business processes. Together with partners, it has developed efficient
During the reporting period, the proportion of "bulk to container" boxes of Zhonggu Logistics was about 18.16%, and and convenient rail-water intermodal logistics products. Through designing a standardized multimodal transport
the turnover was about 1,991 billion ton-kilometers. The carbon emissions of the "bulk to container" transportation mode, Zhonggu Logistics has effectively promoted the standardization and orderly operation of multimodal
mode were about 133,608 tons, saving about 222,462 tons and 1,402,737 tons respectively compared with all rail transport "Through B/L System" service, further improving transportation efficiency and setting an industry
transport and road transport. benchmark.
Annual Features 16 Annual Features 17
Shared Data
After over a year and a half of in-depth research and collaborative development by Zhonggu
Logistics and its partners, the multimodal transport mode "Through B/L System" online system
officially achieved automatic push functionality on October 21, 2024. This breakthrough
upgrades the traditional offline manual logistics tracking method to online automation,
successfully replacing manual intervention with digital technology, significantly enhancing
data accuracy and timeliness.
The "Through B/L System" online system integrates multiple intelligent functions. By breaking
down information barriers between railways and maritime transport, it enables data sharing
and real-time analysis, continuously optimizing the efficient connection of each link in
multimodal transport mode. It also provides customers with more precise and personalized
transportation optimization solutions, further enhancing the value and efficiency of logistics
services. This system marks an important step towards the digital era in the transportation
industry, becoming a key driving force for industry transformation.
The "Through B/L System" can quickly count the status of in-transit, COFCO Sugar Collective Mining Project: "Through B/L
in-port, and out-of-stock, etc., and can quickly analyze the recent System" Data Sharing Achievements Showcased
shipments in case of abnormal delayed arrival and make timely
remedial measures.
The "Through B/L System" online data system can analyze the warehousing
capacity of warehouses through the time-to-delivery, which becomes the
The "Through B/L System" analyzes the demand of different sections
reference basis for the quantity of sugar purchased. Through the effective
through system data, for example, analyzing the warehouse's ability
to ship out through the time of shipment. docking of information system, COFCO Sugar Collective Purchasing
Project not only realizes the end-to-end service for customers from
production and warehousing to sales and distribution at destination ports,
The "Through B/L System" can provide timely solutions for customers but also continues to optimize the efficient connection of multimodal
by analyzing the time in transit, and if the time in transit exceeds the transportation in the process of transportation through the system's data
customers' demand, it can add railroads or other logistics solutions connection, which has successfully become the best demonstration of the
for the customer. characteristics of the "Through B/L System" data sharing. The system has
successfully become the best demonstration of the data sharing feature of
Advantages of the "Through B/L System" the "Through B/L System".
Additionally, Zhonggu Logistics fully utilizes information technology, carries out joint scientific
research projects for technological research, promotes the sharing of data and information
between railroad and water transport, and develops and puts into use the function of
multimodal transport "Through B/L System" on the railroad 95306 platform, which can accept
the whole logistics business of railway and water transport, and has the functions of multimodal
transport bill of lading and issuance, and the whole tracking of goods, Transportation statistics
analysis and other functions, to realize the schedule and price transparency, to create a more
efficient and intelligent mode of transportation.
Strengthening ESG Governance 18 Strengthening ESG Governance 19
ESG Governance
Strengthening ESG System
Governance ESG Governance Structure
Zhonggu Logistics has always adhered to its corporate To ensure the implementation and execution of the sustainable development strategy
mission of "changing the way logistics is conducted and to fulfill its commitment to sustainability, Zhonggu Logistics has established a
in China with containers" and has made sustainable three-tier governance structure consisting of the Board of Directors, an ESG Working
development a long-term strategic goal. By continuously Group, and functional departments. This structure ensures the oversight, guidance, and
implementing the concept of sustainable development, support of the Board and management for related work, promoting in-depth sustainable
Zhonggu Logistics has not only achieved commercial
development governance and institutional construction throughout the group from
value but also created long-term sustainable value for
top to bottom. By establishing a clear three-tier governance framework with defined
society.
responsibilities, we can effectively ensure the smooth progress of ESG initiatives, better
address ESG challenges, and integrate sustainable development principles into every
aspect of our business operations, thereby significantly enhancing the company's sense
of social responsibility and its capabilities for sustainable development.
•Make decisions on major ESG issues
•Review and analyze the progress related to
Board of attainment of ESG goals
Directors •Evaluate and determine ESG risks and
sustainable development suggestions
•Oversee work related to ESG
ESG Working •Formulate relevant ESG strategies, systems and
Group management guidelines
•Prepare ESG reports
Functional •Implement work related to ESG
Departments
ESG Governance Structure
Strengthening ESG Governance 20 Strengthening ESG Governance 21
Double Materiality Assessment
Stakeholder Communication
During the reporting period, we took into account regulatory requirements, industry trends, and stakeholder
Zhonggu Logistics consistently regards stakeholder engagement as a core component of
concerns to accurately identify the material issues for the company's sustainable development. In accordance
its sustainable development strategy. We have established a regular and diverse two-way
with the requirements of the "Guidelines No. 14 of Shanghai Stock Exchange for Self-Regulation of Listed
communication mechanism tailored to the characteristics of different stakeholders, conducting
Companies—Sustainability Report (Trial)" the Company conducted a double materiality assessment. This
systematic dialogues through various channels that cover core groups such as government and
assessment comprehensively examined the potential significant financial impacts (hereinafter referred to as
regulatory agencies, shareholders and investors, employees, customers, suppliers, and community/
"financial materiality") of each material issue on the company's business model, operations, and strategic planning
environment representatives.
in the short, medium, and long term. It also assessed in depth the significant impacts (hereinafter referred to as
"impact materiality") that the company's performance on these issues might have on the economic, social, and
Through regular or special communications, we focus on six major dimensions: economy,
environmental aspects.
corporate governance, environment, employee rights, supply chain management, and community
development. We systematically gather the core demands of stakeholders and incorporate them into
strategic planning. This mechanism not only ensures the accurate transmission of various parties' Step One Step Two Step Three
concerns but also promotes the co-creation of multi-party value and the achievement of sustainable
development goals by continuously optimizing ESG practices. Conducting the Double Materiality Result Analysis and Targeted
Identification of Material Issues
Assessment Disclosure Enhancement
Stakeholder Key Concern Communication Mechanism
•Construct a clear analytical •Impact Materiality: Comprehensive •The Board of Directors
Tax transparency Information disclosure framework and establish explicit analysis of the scale, scope, irreversibility, of the Company reviewed
Government & regulatory evaluation criteria based on and likelihood of impact on various issues and confirmed the analysis
Anti-corruption Feature reports
authorities key considerations such as through surveys and questionnaires from results. Based on the results
Environmental compliance Spot checks
domestic and international internal and external stakeholders. confirmed by the Board,
standards, industry policies, and the Company conducted
Shareholders' meetings regulatory requirements; use •Financial Materiality: Comprehensive information disclosure and
Corporate governance
Information disclosure various methods including peer analysis by senior management of the practice improvement work
Risk management
Shareholders & investors SSE E-interactive benchmarking and stakeholder Company on the likelihood of risks in a result-oriented and
Market performance
Roadshows interviews to accurately identify and opportunities, the continuity of targeted manner.
Economic performance
Site visits potential material issues for the resource use, and the dependency on the
Company. relationship to ongoing operations.
Equal employment
Staff congress meetings
Diversity & equity of Zhonggu Logistics Double Materiality Identification Process
E-school
opportunity
Employees Employee satisfaction
Employee care
surveys Following the rigorous analysis process outlined above, we have identified a total of 21 material topics. Among these
Training & education
Discussion & communication issues, one topic possesses both financial materiality and impact materiality, that is, double materiality; 1 topic is
Occupational health & safety
highly significant at the financial level; and 6 topics have a high degree of impact materiality.
Client satisfaction Client satisfaction survey
Client privacy protection Communication and
Clients Optimization of ship complaint channels
operation Trade shows & promotional
Safety management campaigns
Responsible sourcing Signing of a contract/
Contractors/Suppliers Environmental & social agreement
assessment of suppliers Supplier training Summits
Community interest
Environmental compliance
News media
Communities GHG emission
Field investigation
Wastewater discharge
management
Strengthening ESG Governance 22 Strengthening ESG Governance 23
Results of the Double Materiality Analysis for Material Topics
Impact Financial
Category Topics
Materiality Materiality
Environment Climate Change ●●● ●●●
Response to Sustainable
Environment Environmental Compliance ●●● ●●○
Social Innovation ●●● ●●○
Development Goals
Governance Stakeholder Engagement ●●● ●●○
Social Data Security and Customer Privacy ●●● ●●○
Zhonggu Logistics is deeply integrated into the United Nations' 2030 Agenda for Sustainable
Social Product and Service Safety and Quality ●●● ●●○
Development, actively responding to the 17 Sustainable Development Goals (hereinafter
referred to as “SDGs”), and fully incorporating them into its sustainable development
Social Supply Chain Security ●●○ ●●○
strategic framework. When formulating ESG strategies, the Company focuses on the core issues
of the logistics industry, promoting the precise alignment of sustainable development goals
Social Technology Ethics ●●○ ●○○
with business practices through systematic planning and resource integration. This strategy
not only reflects substantial support for the global vision of sustainable development but also
Environment Waste Management ●●○ ●○○
contributes corporate strength to building an inclusive, low-carbon global supply chain system
through industry innovation and responsible practices.
Governance Anti-Commercial Bribery and Anti-Corruption ●●○ ●○○
Social Employee ●●○ ●○○
Governance Anti-Unfair Competition ●●○ ●○○
Environment Emission of Pollutants ●○○ ●○○
Governance Due Diligence ●○○ ●○○
Environment Circular Economy ●○○ ●○○
Environment Energy ●○○ ●○○
Environment Water Resource ●○○ ●○○
Environment Ecosystem and Biodiversity ●○○ ●○○
Equal Treatment of Small and Medium-sized
Social ●○○ ●○○
Enterprises
Social Public Welfare ●○○ ●○○
Social Rural Revitalization ●○○ ●○○
Strengthening ESG Governance 24 Leading in Low-carbon Shipping 25
Response action of Response action of
SDGs SDGs
Zhonggu Logistics Zhonggu Logistics
Leading in Low-
Zhonggu Logistics has set up a
Zhonggu Logistics upholds fair
structured safety and health system.
employment, fostering an inclusive
We boost staff safety awareness
workplace with equal opportunities. We
carbon Shipping
and emergency response skills with
use a strategic talent system to ensure
comprehensive training. The Zhonggu
diversity, enhancing our organization's
Care Fund also offers financial aid,
innovation and vitality.
spending 59,000 RMB this year.
Zhonggu Logistics has efficiently
implemented a tiered training plan,
Zhonggu Logistics boosts community Green development has always been the core strategy of Zhonggu
completing management training,
welfare, with 774 staff in volunteer Logistics, which actively leads the new era of low-carbon shipping. In the
executive courses, and a standardized
activities and a 46,756 RMB spend on face of the severe challenge of global climate change, Zhonggu Logistics
system for new hires, along with
social initiatives. has always taken China's "dual carbon" goal and the International
teaching materials. This aligns talent
development with business growth. Maritime Organization (IMO) 2050 decarbonization goal as the lead,
continuously improved the climate change management system, and
integrated the low-carbon concept into the entire operation process. We
Zhonggu Logistics prioritizes workplace
Zhonggu Logistics has refined its continue to optimize ship energy efficiency, explore green technology
equity, ensuring a level playing field
container management system, focusing innovation, provide customers with efficient and environmentally friendly
for career advancement. The Company
on both system management and route transportation solutions, and promote the green transformation of the
utilizes varied recruitment channels,
management to ensure quality control,
upholding diversity and fairness, shipping industry through practical actions.
safeguarding the safety and efficiency of
and consistently refreshing its hiring
all freight logistics segments.
strategies.
Guided by green shipping goals,
Zhonggu Logistics has developed a
Zhonggu Logistics adheres to global and
holistic water management system
local emission norms. The Company
encompassing extraction, storage, use,
enhances its fleet's eco-performance
and treatment. It enables scientific
and reduces emissions by optimizing
oversight and centralized control of all
ship design, improving energy tech, and
internal water projects.
applying eco-friendly coatings.
Zhonggu Logistics follows national Driven by technological innovation and
environmental policies, adopting management optimization, Zhonggu
measures to reduce fuel consumption. Logistics has carried out water-saving
It has created a unique fuel efficiency technology improvements and recycling
model that promotes the shipping of wastewater, comprehensively
industry's green shift and builds a enhancing the efficiency of water
sustainable operation system. resource utilization on ships and their
environmental friendliness.
Zhonggu Logistics enhances its
compensation system with a dynamic
incentive model focused on skills and Zhonggu Logistics strengthens governance
performance, informed by market and anti-corruption efforts, focusing on
benchmarks. It also implements a supplier integrity training to support
feedback system to align employee sustainable development.
goals with evaluation metrics, fostering
talent and organizational growth.
Zhonggu Logistics boosts digital Zhonggu Logistics enforces a
operations, using info management transparent bidding process, ensuring
to drive tech innovation in shipping, fair procurement and lawful supplier
enhancing efficiency. partnerships.
Leading in Low-carbon Shipping 26 Leading in Low-carbon Shipping 27
Strategy of Climate Change Governance
Zhonggu Logistics has developed a systematic climate change management strategy. Based on climate scenario
analysis, the Company identifies and assesses climate-related risks and opportunities, categorizing them into short-
term (0-3 years), medium-term (3-10 years), and long-term (over 10 years). Additionally, in response to the identified
risks and opportunities, the Company has formulated management strategies and plans to ensure that climate risk
management progresses in tandem with business development.
Potential Response
Risk category Risk name Risk description
financial impacts strategy
Increased
operational costs: Conducting
It can easily cause damage to
Impairment, write-
Climate Change Management
Tsunami, shipping infrastructure, including future weather
offs, and early research and
rainstorm and the destruction of port facilities,
retirement of existing forecasting in
other natural while also posing direct threats to
assets. advance.
disasters ship structural safety, cargo, and
Heightened Developing
crew members.
challenges in emergency
transportation. response
plans for acute
Under the premise of strictly complying with environmental management compliance requirements, Zhonggu Strong winds and cyclones, risks, such as
Acute risks
Logistics takes science and foresight as the orientation and actively explores effective ways to alleviate climate etc. will affect the navigational the Typhoon
Increased Preparedness
and environmental pressure. We have built a complete climate change governance system and, based on the performance of ships, including
operational costs:
lowering their speed and and Response
recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), systematically identify Impairment, write- Guidelines.
Extreme weather deviating from their course. In
the risks and opportunities brought by climate change to formulate scientific climate response strategies conditions such port operations, strong winds
offs, and early Conducting
and action paths. In addition, we have established several climate change response indicators, achieved retirement of existing emergency drills
as typhoons and will directly affect the berthing
assets. for extreme
quantitative assessment and accurate review through continuous monitoring and trend analysis, and ensured cyclones safety of ships, which may lead
Heightened
to longer waiting time at berths weather
the effectiveness and sustainability of response measures. challenges in scenarios.
or interruption of operations,
transportation.
increasing the uncertainty of cargo
Climate Change Governance
delivery.
Continuously rising average
We integrate the management functions related to climate change into the Company's three-level ESG temperatures and changes in Higher operating
governance structure and build a transparent communication mechanism to ensure efficient collaboration Physical extreme wind speeds will not costs:
between each management level, thereby continuously improving the effectiveness of climate change risks Global average only change the seaworthiness Changes in shipping
temperature rise of traditional routes but may lanes result in
governance. also force shipping companies to increased fuel usage Planning
adjust sailing time windows and and time costs. alternate routes.
route network layouts. Exploring the
•Decision-making on key matters related to climate risks and direction of high-
opportunities efficiency fuel
Board of •Review and critique progress on climate change related objectives Rising sea levels will pose a or future new
Directors •Assessment and identification of relevant climate risks and
major threat to coastal port
Higher operating
energy fuel.
infrastructure, with ports located Actively
opportunities and response strategies costs:
at low elevations, in particular, promoting the
Changes in shipping
at risk of inundation. Such application of
Chronic lanes result in
geographic changes will lead to green shipping
risks Sea level rise the permanent failure of some
increased fuel
technology
usage and time
ESG Working •Oversee climate change related work port facilities, forcing shipping
costs, impairment
and indirectly
Group •Develop strategies to address climate risks and opportunities companies to re-engineer their
global route networks, increasing
of existing assets,
protecting
the ecological
write-offs and early
detour distances and fuel environment of
retirement.
consumption, and significantly water transport
pushing up operating costs. through
measures such
•Identify the risks and opportunities related to climate change as hull design
Functional Ocean
Ocean acidification will accelerate optimization.
•Conduct work related to strategies to address climate risks and
Departments acidification
the rate of corrosion of ship hulls,
Higher operating
opportunities port infrastructure and related
and damage costs: increased
infrastructure and facilities,
to marine maintenance costs.
resulting in higher maintenance
biodiversity
Structure of climate change governance costs for The Company.
Leading in Low-carbon Shipping 28 Leading in Low-carbon Shipping 29
Potential Response Potential Response
Risk category Risk name Risk description Risk category Risk name Risk description
financial impacts strategy financial impacts strategy
Continuously Actively
Research and
monitoring Without systems or new promoting
Climate change-related development of Higher operating
possible policy technologies to replace traditional green energy
legislation is being progressively Technology energy-saving costs: Increased R&D
and regulatory fuels, The Company could be transformation
strengthened globally. The
trends and risk and emission
impacted by increases in fossil fuel
efforts and higher
and exploring
Chinese government has reduction R&D costs.
conducting prices and regulatory compliance. green fuel for
continued to promote green technologies
timely learning ships.
shipping, support the low-carbon
and training.
transformation of the shipping
Taking measures
industry, and strengthen the Investors, regulators, customers
to reduce
energy use requirements for and other stakeholders are
exhaust gas Continuously
enterprises. At the same time, IMO demanding higher disclosure
pollution, such disclosing
has put forward the requirement requirements from the shipping
as installing Disclosure of sustainability
of continuous reduction of Higher operating industry in addressing climate Revenues are down:
nitrogen removal information relating information
Requirements carbon emission intensity in the costs: change. If management is not Decline in demand
Policy and devices. to environmental and improving
and regulatory international shipping industry Increased penalties Transition compliant or environmental for services.
legal risks shifts in the IMO Initial Strategy for due to elevated
Laying out the performance the level of
carbon market risks performance disclosure is not
detail of its own
Greenhouse Gas Emission compliance risk. thorough, it will affect corporate
in advance and disclosure.
Reduction from Ships. In addition, reputation and damage corporate
conducting
the introduction of some national Reputational image.
research
laws and regulations or restrictive
on internal risk
clauses on climate change and
carbon pricing Actively
the ecological environment has
mechanism. improving
resulted in certain restrictions
Actively our own
or impacts on The Company's Investors and customers may
promoting Intense inter-firm environmental
operations such as its ocean choose competitors with better Revenues are down:
green energy competition for performance and
freight forwarding business, environmental performance, Decline in demand
transformation environmental continuing to
which may give rise to some legal resulting in lower revenues for The for services.
and exploreing performance work on energy
proceedings risks Company
green fuel for conservation
ships. and emission
reduction.
After the opening of the national
Transition carbon market, the price of
Higher operating
risks Carbon Markets carbon trading may increase,
costs:
and Carbon which in turn will affect The
Carbon abatement Zhonggu Logistics adheres to the strategic mindset of "turning challenges into opportunities" and has established
Trading Company's internal environmental
costs rise. a systematic mechanism for identifying and assessing climate-related opportunities. Against the backdrop of
management and business
decisions and operating costs. accelerating global climate governance, the Company deeply recognizes that climate change is not only a challenge
but also a strategic opportunity. We precisely seize the market opportunities brought by the climate transition,
In 2018, China's Ministry focusing on emerging fields such as green shipping. Through forward-looking business strategies and innovative
Policy and of Transportation and service models, we continuously enhance our core competitiveness in the green logistics sector.
legal risks Communications (MOTC) issued
the Implementation Plan for Ship
Air Pollutant Emission Control Higher operating
Control of air Areas. The new Guidelines for the costs: Opportunity Climate-related
pollution from Supervision and Management of Increased penalties Definition of opportunities Response strategy
type opportunities
ships Air Pollutant Emissions from Ships due to elevated
will come into force on January compliance risk.
Continuously strengthening the green ship
requirements for the statistics and Energy Transformation of for the shipping industry in the future, such
system to ensure business continuity by
supervision of air pollution from sources the energy mix as green fuels and expansion of shore power
increasing the use of renewable energy.
ships. installations.
Higher carbon tax costs on Continuously exerting the advantages
Higher operating Actively The "bulk-to-container" and "Through
Rising energy crude oil and the application of of intelligent asset scheduling and bulk-
costs: B/L System" modes of transportation
prices fuel cleaner technologies have promoting green Resource Resource to-machine transportation to grasp
Higher fuel prices. energy transition will enhance resource efficiency in the
increased the price of fuel oil. efficiency efficiency gains
transportation process, for example, by
the opportunities of green logistics
and exploring transformation in the mode of resource
green fuel for reducing packaging losses of materials.
Market intensification.
Customers are making demands ships.
risk related to the reduction of carbon Studying the
Changes in emissions in containerized Revenues are down: extent of green Researching low-carbon products,
As the global low-carbon requirements
Customer transport operations or preferring Decline in demand consumption Low-carbon continuing to promote the "Through B/
Products and for businesses become more stringent,
Behavior energy-based transport services for services. shift in the product and L System" transportation model, and
services service innovation
customers will favor green products and
continuing to disclose its low-carbon
that produce no or fewer carbon market. green markets in the future.
emissions. performance.
Leading in Low-carbon Shipping 30 Leading in Low-carbon Shipping 31
Emergency management Energy efficiency improvement
Opportunity Climate-related
Definition of opportunities Response strategy
type opportunities
•The Company sets up emergency response •Promote green ship design and protect
teams for extreme weather, such as typhoons, the marine ecosystem by optimizing the
Compared to other transportation methods, and holds meetings on typhoon prevention to longitudinal inclination of ships and using
such as air freight, road transport, and rail
carry out analysis and notification of typhoons harmless paints.
transport, shipping demonstrates superior
performance in reducing CO2 emissions Continuously promoting transportation and release them in the typhoon prevention
Marketing per ton-kilometer. Additionally, shipping models such as "bulk-to-container" and work group. After the extreme weather, the •Enhance energy efficiency and reduce energy
Market and customer exhibits higher adaptability to certain " Through B/L System ", while actively marine supervisor promptly follows up the ship consumption and emissions by increasing the
development extreme weather conditions, such as heavy expanding customer needs to meet their to check the damage, summarizes and reports installation rate of shore power equipment on
snowfall. As a result, as customers gain a demands for a greener market. to the typhoon prevention group, and the ships.
deeper understanding of their own needs, an engine supervisor arranges to guide the ship to
increasing number of them may shift their repair and provide necessary support.
transportation preferences toward shipping.
Deepening supply chain collaboration and
Metrics and Targets
The " Through B/L System " transportation
working jointly with supply chain partners
Increased supply model will enhance supply chain efficiency
Resilience chain resilience and resilience, while also promoting data
to improve logistics efficiency and drive
the green transformation of the shipping
sharing across the supply chain.
industry.
Zhonggu Logistics has incorporated climate change-related indicators into the scope of data collection and
management, and regularly discloses relevant data to enhance information transparency. During the reporting
period, the climate change-related indicators are as follows:
Risk Management
Indicator Unit 2024 2023 Changes
Zhonggu Logistics has established a systematic climate change risk management mechanism by incorporating the
climate change risk management system into the Company's overall risk management framework. The Company Category 1 Total GHG Ton of CO2
has established a full-process management system from risk identification, assessment to response, ensuring 807,147.24 1,005,206.41 -19.70%
emissions equivalent
that all kinds of climate risks are under control. In terms of physical risk management, the Company adopts a
dual guaranteed strategy of "system + technology". On the one hand, it improves the organizational structure and Category 2 Total GHG Ton of CO2
system of risk management, and on the other hand, it strengthens technological investment and facility upgrades, 2,716.65 1,765.64 53.86%
emissions3 equivalent
effectively ensuring the stable operation of business. At the same time, the Company fully leverages its own technical
advantages, deeply integrates the low-carbon development concept into product research and development Ton of CO2
and service innovation, actively grasps the development opportunities brought by climate change through the Total GHG emissions 809,863.89 1,006,972.05 -19.57%
equivalent
development of green ships and green shipping solutions, and continuously promotes the green transformation of
the shipping industry.
Ton of CO2
GHG emissions intensity equivalent/ million 71.94 80.95 -11.14%
RMB
Institutional guarantee Technical guarantee
Total direct energy
kWh 3,075,916,402.69 3,745,413,597.62 -17.88%
consumption
•Zhonggu Logistics has established a •On ocean routes, the Company innovatively
systematic climate risk emergency management introduced professional meteorological Gasoline kWh 1,436,680.23 1,622,251.42 -11.44%
system. By formulating and implementing navigation services, and built an intelligent
specialized plans such as the Ship/Shore route optimization system through cooperation Diesel kWh 242,131,725.18 310,356,964.81 -21.98%
Emergency Manual and the Instructions with internationally renowned meteorological
on Typhoon Prevention and Resistance, agencies, which effectively avoided navigational Low sulfur fuel oil kWh 2,806,590,130.45 3,409,340,532.30 -17.68%
the company has built a comprehensive risks brought by extreme weather, such as
mechanism to respond to extreme weather typhoons and rainstorms, and significantly Lubricating oil kWh 25,757,866.83 24,093,849.09 -6.91%
conditions. Regular emergency drills and enhanced the operational efficiency of the
Total indirect energy
training sessions are conducted to ensure the vessels. During the reporting period, the kWh 5,062,713.69 1,678,000.00 201.71%
consumption
effective implementation of all preventive Company's fleet achieved a safe operation
measures. Through the adoption of proactive record of zero meteorological accidents, Purchased electricity4 kWh 5,062,713.69 1,678,000.00 201.71%
management practices, the company has laying a solid foundation for the continuous
effectively safeguarded crew safety, vessel improvement of shipping safety management
integrity, and cargo security, providing reliable level.
The emission factor used there is the national average carbon dioxide emission factor for electricity of 0.5366kgCO2/kWh within
safety assurance for business operations and
the Announcement on the Publication of CO2 Emission Factors for Electricity in 2022 issued by the State Ministry of Ecology and
ensuring the stable functioning of its service Environment on 26 December 2024
network.
The scope of the 2024 purchased electricity data has been optimized and revised from previous year. The scope of the 2024 data
includes total purchased electricity for ship production and operation and total purchased electricity for office administration.
Leading in Low-carbon Shipping 32 Leading in Low-carbon Shipping 33
Low-carbon Sailing
In the field of green ship technology innovation, Zhonggu Logistics has made a breakthrough by implementing the
trim optimization project6, which has pioneered a new model for energy conservation and emission reduction in
the shipping industry. By December 31, 2024, this project had saved 744.968 tons of fuel for the Company through
fine management and technological innovation, significantly reducing carbon emission intensity. At the same time,
Zhonggu Logistics has established a complete database and operating procedures, providing valuable technical
reserves for the subsequent operation of self-operated ships on domestic trade and foreign trade routes. This
Zhonggu Logistics has established a low-carbon management system that covers the entire value chain, integrating innovative practice not only demonstrates Zhonggu Logistics' technical strength in the field of green shipping, but
the concept of green ships into strategic planning, operational management and organizational culture construction. also provides replicable low-carbon solutions for the industry, effectively promoting the sustainable development
In terms of emission reduction practices, the Company uses technical means such as speed optimization and process of the shipping industry.
route planning to significantly improve the energy efficiency of ships. At the same time, the Company promotes a
green office plan involving all employees, achieving dual improvements in environmental benefits and operational At the same time, in the maintenance and maintenance of ships, Zhonggu Logistics strictly implements the green
efficiency. and environmental protection concept, establishes a strict paint procurement and use standard system, and
comprehensively adopts environmentally friendly harmless paints. In the process of ship dock repair and daily
Green Ships maintenance, we give priority to the selection of low VOC (volatile organic compounds) content of environmental
protection paint, which significantly reduces the impact of harmful substances on marine ecology.
Zhonggu Logistics always adheres to the operation concept of "green ship", takes "whole life cycle green
Fuel Management
management" as the guidance, and builds a systematic green ship operation system. Through multi-dimensional
elements such as ship design optimization and environmental protection paint use, it continuously promotes the
green upgrade of ship performance.
Zhonggu Logistics has established a systematic energy management system, taking fuel efficiency management as
the core approach to achieve low-carbon transformation in shipping. The Company innovatively constructed a three-
in-one fuel efficiency improvement plan of "system + technology + management": at the system level, it formulated
•Adoption of S-BOW bow for better speed and wave resistance.
•Optimize the longitudinal inclination of the ship to save fuel the Energy Management System and the Zhonggu Logistics Fuel Management Measures covering the entire fleet,
Green design
for ships effectively. implementing full life cycle management of the fuel supply chain; at the technical level, the Company used the ship
•Use of harmless paints to protect the marine environment. monitoring system to optimize routes in a timely manner, achieving refined management of fuel; at the management
level, the Company took multiple measures to save fuel use, forming a fuel efficiency management model with
Zhonggu characteristics, further promoting the green transformation of the shipping industry.
•The latest version of the main engine is equipped with a shaft-
holding axle generator, which provides better fuel-efficiency
Green design performance for the vessel. Procurement: fuel control
for mechanical •Adoption of energy-saving facilities such as high-efficiency
system propellers, anti-vortex fins, energy-saving pre-rotation ducts
and flap rudders, etc., to enhance the ship's energy-efficiency •We have formulated the Fuel Oil Quality Control Management Program (Trial) to strictly control
performance. fuel quality from the source. All oil products shall be sampled and monitored by the authority,
and tested 24 hours before formal use to ensure fuel efficiency.
Green Ship System
•Improve the installation rate of shore power equipment on
existing vessels and require vessels to prioritize the use of shore Bunkering: accurate gauging
Green design power during berthing in domestic ports in order to reduce the
for energy fuel consumption of vessels.
system •As of the end of the reporting period, 47 of the 49 vessels owned •We have compiled the Management System for Equipping, Calibration, Use and Maintenance
by CGC Logistics had completed the installation of shore power of Measuring Instruments to standardize the measuring operation and management of tools. Our
equipment. oil measurement personnel boards the vessel to conduct the measurement, preventing the fuel
waste caused by reasons such as fuel storage error or inaccurate measurements.
Green design •Relying on the PMS system5 to monitor and timely eliminate all Storage: maintenance
for industrial kinds of running, risking, dripping and leaking phenomena of oil,
software water and gas, and reduce the resulting energy waste.
•We have formulated many rules and policies such as the Instructions on Ship and Equipment
Maintenance, the Instructions on Management of Spare Parts and Materials of Ships and
the Instructions on Ship Fuel Management to refine management and maintenance of ship
conditions, eliminate fuel waste caused by evaporating, emitting, dripping or leaking of ship fuel.
PMS System：Planned Maintenance System, which is a computerized management system used in ship
management to plan and perform equipment maintenance. 6
The trim optimization project refers to adjusting the ship's draft depth and the difference between the fore and
aft drafts (trim angle) in the water to alter the ship's hydrodynamic characteristics, thereby reducing navigation
resistance and improving fuel efficiency.
Leading in Low-carbon Shipping 34 Leading in Low-carbon Shipping 35
Usage: route optimization
•We have formulated many rules and policies such as the Instructions on Ship and Equipment
Maintenance, Instructions on Management of Spare Parts and Materials of Ships and Instructions
on Ship Fuel Management to refine management and maintenance of ship conditions, eliminate
Ecological Co-construction
fuel waste caused by evaporating, emitting, dripping or leaking of ship fuel.
Supervision: Examination of Abnormalities Zhonggu Logistics regards environmental compliance management as the cornerstone of sustainable
development and has established a multi-level environmental risk prevention and control system. The Company
strictly follows international regulations such as the International Maritime Organization (IMO) Convention,
•In daily fuel consumption management, the company analyzes the consumption statistics
curve, carries out timely examination of abnormal consumption to avoid waste of fuel the International Convention for the Prevention of Pollution from Ships (MARPOL) , and the anti-pollution
consumption, and carries out carbon intensity tracking and management for ships on convention, as well as environmental protection laws and regulations in the places where it operates, to build a
international routes. comprehensive environmental management system covering resource management, exhaust gas management,
waste management, etc.
Management Process of Ship Energy Consumption
The comprehensive and systematic ship energy consumption management system has brought significant benefits
Water Management
to Zhonggu Logistics' energy conservation and emission reduction work. During the reporting period, the fuel
consumption per 100 nautical miles of Zhonggu Logistics' self-operated fleet was 8.04 tons/100 nautical miles, a
decrease of 7.2% compared with 2023.
Green Office
Water resource management is the core link of Zhonggu Logistics' implementation of the ecological priority
strategy. The Company has formulated the Ship Water Resource Management Plan and the Implementation Plan
for Reducing Freshwater Consumption of Domestic Trade Ships internally and established a full-process water
resource management system covering water intake, storage, use and sewage treatment. At the same time, the
Zhonggu Logistics actively practices green office and takes the initiative to build a concept and atmosphere of
Company strictly controls the waste of water resources caused by equipment leakage, and actively cultivates the
green and low-carbon participation for all employees within The Company. The Company not only systematically
water-saving awareness of crew members. In 2024, our total amount of water circulation and reuse reached 455
transforms its office premises into green ones, but also instills the concept of green office in all employees in daily
tons.
office management. During the reporting period, Zhonggu Logistics further promoted green office measures and
endeavored to root the concept of low-carbon environmental protection in the daily work of every employee.
Paper Electricity Water Business Trip
Management Managment Management Management
•The Company office •Call on employees to •Adopt induction water •Encourage employees
unified management turn off the electricity collection for hand to give priority to
of office printing when not reqiured.. washing, stopping when high-speed rail, train,
equipment, requiring •Power supply in the not in use, effectively subway and other public
employees to use office area is divided into avoiding the waste of transportation to reduce
double-sided printing as zones, and the number water resources. carbon emissions during
far as possible to avoid of lights is appropriately travel.
paper waste. reduced for overtime
work on holidays.
Green Office Management
Leading in Low-carbon Shipping 36 Leading in Low-carbon Shipping 37
Oil wastewater Ballast water Domestic sewage
Less freshwater Seawater management management management
consumption desalination
•Refined management: •Reasonable planning: •Storage compliance:
•Implementing a cross-secctional •Each vessel of Zhonggu Logistics
Through process analysis, In accordance with the Our vessels are equipped with
comparasion among ships in the is equipped with a freshwater
water consumption, we've identified generator during international review and summary,we International Convention on domestic wastewater storage
the measures for reducing freshwater voyages, the distilled water is have reduced the slag yield the Control and Management tanks and the off-board direct
use and taken such measures in the stored in a freshwater tank for daily of residues after cooking of Ships' Ballast Water and sea valve is cut off to eliminate
fleet. We usually used river water life, engine-room equipment and oily sewage, implementing Sediments issued by the non-compliant storage.
to clean the decks of our ships to cooking. the system of accountability IMO, Zhonggu Logistics has •Efficient disposal:
reduce the freshwater consumption. for ships that exceed the developed ballast waterrelated All domestic wastewater
standards. management plans to ensure must be treated by domestic
•Emission supervision: compliance in terms of ballast wastewater treatment
For the discharge of oily water. devices. We regularly cultivate
During the reporting period, our water consumption and discharge were as follows: wastewater, each vessel for •Technical upgrade: microorganisms and apply
foreign trade is equipped with All of the Company's current disinfectant tablets to reduce
an oil-water separator and a 15 ballast water treatment the pollutants in domestic
Category Subcategory Unit 2024 2023 Change PPM monitor. For the purpose systems adopt the technical sewage.
of traceability, the fleet timely means of mechanical •Emission control:
records the discharge of treatment (filtration) and The domestic wastewater is
Total water
ton 96,470.00 101,562.70 -5.01% oily wastewater in the Oily physical treatment (nitrogen discharged into the sea 12
consumption
Water Wastewater Logbook, and asphyxiation method) to nautical miles away after being
consumption the maintenance department continuously improve the pulverized in strict accordance
ton/RMB
Water intensity 8.57 8.16 5.01% regularly inspects the ship's efficiency of ballast water with the discharge rate
million
wastewater control facilities treatment. requirements. The qualified
onboard. •Certification guarantee: domestic wastewater after
•Optimization and All ships of the Company biochemical treatment may
rectification: have complied with the D-2 be pulverized and discharged
For wastewater management, Zhonggu Logistics strictly complies with laws and regulations such as the Water
The Company actively standard (Biological and to places 3 nautical miles
Pollution Prevention Law of the People's Republic of China , the Marine Environmental Protection Law of the People's
seeks problems through Hygienic Standards for Ship offshore according to the
Republic of China , the Regulations on the Prevention of Marine Environmental Pollution by Ships, the Emission
interviews on all our self- Ballast Water Treatment ) discharge rate. In waters where
Standards of Pollutants from Ships , and the International Convention for the Prevention of Pollution from Ships, and
owned vessels to check the since 2017, and all ship ballast discharge is not allowed, such
implements the requirements for compliance discharge and treatment of vessel wastewater. We classify domestic
generation,management and water treatment systems are as the inland sea of China, any
wastewater and engine room sewage of vessels and establish strict management systems and comprehensive
discharge of oily wastewater in compliance with USCG wastewater is taken back to
compliance guarantees to avoid pollution of the marine environment.
from ships, and propose certification. shore for disposal.
rectification measures for the
problems found.
Watewater Management
Leading in Low-carbon Shipping 38 Leading in Low-carbon Shipping 39
During the reporting period, our water consumption and discharge were as follows: Our waste gas emissions during the reporting period are as follows：
Category Subcategory Unit 2024 2023 Change Category Subcategory Unit 2024 2023 Changes
Production wastewater Ton 12,110.60 11,858.20 2.13% Nitrogen oxide Ton 21,005.81 25,517.07 -17.68%
Domestic wastewater Ton 4,807.00 2,296.54 109.31% Sulfur oxides Ton 2,414.46 3,690.00 -34.57%
Wastewater Total amount of Particulate matter Ton 519.66 631.26 -17.68%
Ton 16,917.60 14,154.74 19.52% Waste
wastewater discharge8 gas
Total waste gas
Ton 23,939.93 43,115.06 -44.47%
Wastewater discharge Ton/million emissions
intensity by revenue RMB
Waste gas emission Ton/million
intensity by revenue RMB
Waste Gas Management
Zhonggu Logistics has established a systematic air pollution prevention and control system, strictly adhering Waste Management
to the Law of the People's Republic of China on the Prevention and Control of Atmospheric Pollution , and the
Implementation Plan for Ship Air Pollutant Emission Control Area . The Company innovatively formulated the Zhonggu Logistics strictly adheres to domestic regulations such as the Environmental Protection Law of
Implementation Guidelines for Air Pollution Emission Control Areas in Chinese Waters for Ships . Through a the People's Republic of China , the Energy Conservation Law of the People's Republic of China, the Marine
comprehensive management approach of "source control + process optimization + end treatment," Zhonggu Environmental Protection Law of the People's Republic of China ，as well as international standards like the
Logistics has significantly reduced the impact of ship operations on air pollution in port cities and coastal areas. International Convention for the Prevention of Pollution from Ships (MARPOL). The Company has established
institutional guidelines such as the Instructions for Ship Pollution Prevention and Management, the Pollution
Process End-to-end Prevention Codes to ensure systematic and regulated management. Additionally, we require all vessels to rigorously
Source control implement the Ship Garbage Management Plan , ensuring precise classification of waste oil, domestic garbage, and
optimization governance
other types of waste to enhance waste management efficiency.
•Use of low-sulphur fuel •Regular maintenance of •Installation of nitrogen For oily hazardous wastes such as sludge and dirty oil, we do the decommissioning through qualified receiving
oil to reduce emissions of the oil separator and header units. At the same time, we carry out on-site supervision and measurement of dirty oil and water removal by the
removal devices to ensure
sulphur dioxide and other exhaust valves to ensure Fuel Oil Supervision Department to prevent the loss of normal fuel oil. In the agreements signed with suppliers, we
compliant emissions of
air pollutants. adequate combustion and emphasize formal operation to prevent pollution of dirty oil and fuel oil theft and sale, and to avoid potential harm
reduce harmful emissions. exhaust gases.
to the environment. As of the end of the reporting period, we safely removed a total of 2,684 cubic meters of dirty
oil and water without any violation of the law.
Management Process of waste gas For the remaining general waste, we strictly followed the regulations to categorize and decommission it for
receiving and disposal. During the reporting period, our waste discharge was as follows：
Zhonggu Logistics installed denitrification devices
Category Subcategory Unit 2024 2023 Change
In August 2024, Zhonggu Logistics retrofited three
of its 4600-series vessels, namely the "Zhonggu
Total amount of non-
Wuhan," "Zhonggu Nanchang," and "Zhonggu Ton 418.00 675.20 -38.09%
hazardous waste9
Chengdu," with denitrification devices at COSCO
Shipping Heavy Industry in Shanghai. This initiative
aimed to ensure compliance with relevant emission Non-hazardous waste Ton/million
emission intensity RMB
regulations and meet the required environmental
standards. Waste
Denitrification Devices Installation Total amount of
Ton 1309.34 1,551.00 -15.58%
hazardous waste10
The main reason for the increase in domestic wastewater in the reporting period was the increase in the number Hazardous waste Ton/million
of owned office premises in various branches. emission intensity RMB
The total amount of wastewater discharge contains production wastewater and domestic wastewater, of which the
production wastewater is only the production wastewater generated in the process of ship transportation that does
not meet the emission regulations, and other production wastewater in the grain flow are in strict compliance with
Non-hazardous waste consists of ship solid waste recycling decommissioning and office and household waste.
the relevant national laws and regulations, and are discharged into the ocean after treatment and compliance with
the discharge conditions.
Hazardous waste includes oil sludge and batteries, with the latter starting to be counted for the first time in 2023.
Deeply Exploring Customer Value 40 Deeply Exploring Customer Value 41
Deeply Exploring Diversified Routes
Customer Value Based on the Zhonggu Logistics information platform, we have built a full-process transport service from booking
to picking up cargos. Relying on the independently developed the Zhonggu Logistics Intelligent Information
Management System , we have achieved seamless integration and intelligent dispatching of shipping, railway, road
With the corporate mission of "Change the Logistics Pattern in China by Containers", driven by globalization and and other modes of transport. Through the visualized tracking platform and electronic document system, customers
industrial upgrading, we build an intelligent logistics system with standardized containers as the core carrier, and can grasp the dynamics of goods in transit in real time and complete the whole process of online business operation.
based on the Internet of Things, big data and other cutting-edge technologies, we create a safe, reliable, efficient, Based on the data-driven transport path optimization model, we dynamically match capacity resources with
accurate and environmentally friendly Through B/L System intermodal transport solution for our customers. Through customer demand, effectively improve timeliness and delivery certainty, building a transparent, controllable and
continuous optimization of digital operation network and intelligent service process, we deeply integrate science traceable digital supply chain ecosystem for our customers while lowering comprehensive logistics costs.
and technology innovation into each link of the supply chain, strive to improve the efficiency of resource allocation
and the level of low-carbon operation, and are committed to creating a new supply chain paradigm with long-term
competitiveness and ecological value with our customers.
Building Excellent Service
Information flows: vessels, ports, corporate Cash flow: across the container logistics
systems, mobile connectivity service chain
Rail Maritime Shipping Rail
Relying on a standardized operation and management mechanism, Zhonggu Logistics is flexible in responding to the
Land Water Land
new trend of market changes. We are actively expanding diversified routes, continuously improving service quality Booking Packing Picking up
transportation transportation transportation
and optimizing customer experience, and are committed to providing customers with green, efficient, safe and Road River Transport Road
convenient all-round logistics services.
Intermodal Transport Business Model
Deeply Exploring Customer Value 42 Deeply Exploring Customer Value 43
Domestic trade routes
Foreign trade routes
As of the end of the reporting period, Zhonggu Logistics had established a domestic trade route network
covering the coastline and major river basins, forming a three-dimensional shipping network layout Actively responding to the national strategic approach of “take the domestic cycle as the mainstay and let
covering coastline and inland trunk lines of China, specifically including more than 60 coastal trunk the domestic and international cycles promote each other ”, with the existing advantages in domestic trade
lines, more than 30 Yangtze River Basin routes and more than 160 Pearl River Basin routes. The network network, Zhonggu Logistics focuses on the development pattern of double circulation and continues to
radiates 25 core coastal hub ports and more than 50 key inland river ports across the country. Through the deepen and expand the nearshore business. During the reporting period, Zhonggu Logistics leased some of
systematic integration of port and shipping resources and the construction of multimodal transport mode our vessels through the time charter model, with business scope covering 5 overseas countries and 12 ports at
corridors, an efficient and hierarchical integrated logistics service system is built. home and abroad, successfully connecting domestic and foreign trade transportation industry chain, further
consolidating the advantageous position of Zhonggu Logistics in the field of foreign trade.
In terms of strategic layout, we rely on the three horizontal transportation corridors formed by the Yangtze
River golden waterway, Pearl River shipping trunk line and coastal routes, superimposed with north-south
vertical sea lanes, to build a “three horizontal and one vertical” shipping backbone with strategic depth
Building Core Advantages and Leveraging Platform Resources
characteristics. Through the coordinated development of port clusters, coordinated trunk and branch
Sincere Service First for Synergistic Development
routes and seamless intermodal transport, efforts are being made to promote the construction of a modern
shipping and logistics corridor to achieve the deep integration of the river basin economic belt as well
as the coastal economic circle. In response to our customers' core demand for logistics quality, we focus •Comparing with the original CCA mode of •Mobilizing domestic trade barge resources,
foreign trade barges, the WGO (water gate) mode integrating and optimizing the barge route
on building a boutique express network connecting major coastal hubs. Providing customized maritime
has lower costs and higher efficiency, freeing allocation between Wuzhou and Nansha,
solutions with timeliness and reliability through high density liner service, priority berth protection and customers from the constraints of CCA, reducing forming a win-win situation in terms of efficiency
intelligent operation management. the overall efficiency and cost, providing and benefits, and creating high-quality foreign
customers with diverse choices, and forming trade services.
the core competitiveness of Zhonggu Logistics'
foreign trade routes.
Zhonggu Logistics Route
Establishing a Seamless Service System Establishing an Excellent Brand
with Comprehensive Assurance and Striving for Perfection
•Through end-to-end operational synergy •Breaking out of the geographical limitations
and dedicated one-on-one client guidance, of Nansha Port, integrating domestic trade port,
we streamline processes to save time, reduce container, and barge resources, combining
complexities, and enhance peace of mind, domestic trade experience, extending and
elevating the overall customer experience to expanding the reach of foreign trade, building
unprecedented levels. excellent reputation and credibility for Zhonggu
brand.
New model of internal and external double circulation
As at the end of the reporting period, Zhonggu Logistics operates 49 vessels with
approximately 2.47 million deadweight tons and an annual container volume of
approximately 11.29 million TEU. The South
China Sea
Islands
Deeply Exploring Customer Value 44 Deeply Exploring Customer Value 45
Customer Management
Quality Assurance
Adhering to the core philosophy of "Customer satisfaction is our pursuit," Zhonggu Logistics continuously
enhances the customer service standards. We constantly optimize our customer service, proactively address
customer needs, and are committed to comprehensively improving customer management and enhancing the
overall customer experience.
Always adhering to the core philosophy of "customer first,
Optimizing Customer Service
quality first", Zhonggu Logistics continuously optimizes
the packing management system to provide customers
with an outstanding and stable experience in shipping Headquarter
services.
On the basis of ensuring route safety, Zhonggu Logistics continues to boost ship operation capabilities and
Area provide customers with efficient and stable shipping services.
Container Management Governance Structure
Road Safety Assurance
We have established a four-level
management structure from headquarters
Port Safe and stable navigation conditions are the foundation of Zhonggu Logistics' development. During the
to various functional departments. Within
reporting period, we established two management structures for navigation safety, which are applicable to
each department, we actively pursue flat
personnel related to the Company's safety management system (SMS) management organization (hereafter
management and are committed to reducing
referred to as "onshore employees") and all crew members of each vessel.
the negative impact of redundant human Dispatch Team, Repair Team, Tracking Team,
resource structure on business promotion Leasing and Manufacturing Team
Our subsidiary Yingkai Shipping has formulated an efficient structure directly managed by the general manager
efficiency.
for onshore employees. The general manager oversees five deputy general managers, who are respectively
in charge of the Ship Management Department responsible for the specific operations of the vessels, the
Container Management System Technical Support Department responsible for cutting-edge technological innovation, the Procurement
Department responsible for the purchase of fuels and other materials, and the Safety Supervision Department
We have established a sound container management system to implement quality responsible for overseeing and managing safety operations. In addition, the Crew Department responsible for
management from both container management system and routing management, to managing ship members and related matters is directly managed by the general manager. All departments
ensure safe and efficient freight transport links. perform their respective duties, strictly implement daily management based on the Company Onshore
Employee Responsibilities to ensure optimal management.
Container System Management Route Management
General Manager
•We conduct a full life cycle •In order to enhance transportation Crew Department
analysis of customer service, efficiency, we continously improve
analyze the scenarios involved in route management, upgrading
All Ships
the transportation process, sort customer service quality while saving
them out and establish a container operating costs, achieving a well- Vice General Managers
management system, by applying balanced sustainable development
the digital platform, we create a framework. In terms of route
Ship Management Technical Support Procurement Safety Supervision
full-process management function construction, we manage and modify
Department Department Department Department
from ordering, tracking, inquiry, conventional routes in a regular
modification, settlement, etc., manner. Regarding transit corridor
Responsibility framework for Yingkai Shipping Onshore Employees
and further improve the customer development, we strategically
experience. optimize vessel allocation and
cargo routing patterns with defined For all crew members on board, we have established a responsibility framework with the ship's captain as the
objectives: accelerating time- ultimate responsible person. In our Company Crew Responsibilities , we have strictly defined the specific duties
critical transshipment efficiency, and navigation rules for all crew members, requiring carrying out navigation work in strict accordance with the
balancing import-export cargo flows, regulations and rules, implement a full responsibility system, and jointly maintain the safety and navigation
and maximizing route profitability order of the ship.
indices.
During the reporting period, Zhonggu Logistics conducted a total of 25,728 hours of quality and safety-related
training, covering all company employees.
Deeply Exploring Customer Value 46 Deeply Exploring Customer Value 47
Measures to Enhance Ship Operating Capacity
Satisfying Customers Demands
Under the premise of ensuring navigation safety, we have adopted a series of measures to continuously
optimize the operating capacity of our ships. These initiatives mainly revolve around two dimensions, We actively improve our customer satisfaction survey mechanism and invite customers to participate in satisfaction
surveys through diverse channels such as the Zhonggu e-commerce platform, WeChat Official Account, and WeChat
including the upgrade and optimization of the ship's own operating conditions, as well as the cultivation
Moments.
and enhancement of crew members' operational awareness and sense of responsibility.
We continuously strive to increase the coverage of our customer satisfaction surveys, encouraging customers to
Ship Speed-up Retrofit share their genuine experiences with Zhonggu Logistics services by offering incentives such as coupons. It helps us
identify areas waited for improvement and optimize our service levels. During the survey process, we attach great
The maximum rotational speed of Zhonggu Logistics' City Series vessels has been maintained at importance to customer privacy and ensure that all questionnaires do not involve personal customer information.
the reporting period, to enhance the operational efficiency of the vessels, the competent technical detail, promptly reviewing and continuously tracking the issues.
department conducted detailed testing and analysis of the main engines' thermodynamic parameters,
including key indicators such as rotational speed, power, explosion pressure, and fuel consumption. During the reporting period, Zhonggu Logistics distributed satisfaction surveys to a total of 1,749 active booking
On the premise of ensuring safety, the technical personnel decided to adjust the operating parameters customers, with 986 responses received, representing a response rate of 56.4%. In 2024, the overall customer
of the main engines. Based on the test results and actual operational requirements, the maximum satisfaction rate for the Company was 93.2%. We conducted a summary analysis of each customer feedback and
operating rotational speed of the main engines was increased to 116rpm. To ensure the safe operation formulated follow-up rectification measures, clarifying the responsible departments and rectification deadlines. For
of the main engines, the technical personnel carefully inspected the explosion pressure according to reasonable suggestions and demands raised by customers, we actively adopted them and developed corresponding
the load conditions, ensuring operating below the safety limit of 145bar. We also made reasonable improvement measures to ensure effective problem resolution. We also strengthened communication and
adjustments to the maximum fuel limit of the main engines, controlling it within 48% of the throttle exchange with customers, promptly providing feedback on progress, and won the understanding and support of our
scale to avoid engine overload and fuel wastage, thereby significantly improving the operational customers.
efficiency of the main engines on the City Series vessels.
Ship Monitoring and Satellite Navigation System
Customer Complaint Management
During the reporting period, we upgraded the equipment on five vessels, namely Zhonggu Nanjing,
We have established an open and transparent complaint reporting mechanism to enhance our response capability
Zhonggu Chongqing, Zhonggu Wuhan, Zhonggu Nanchang, and Zhonggu Chengdu. A series of satellite
to customer complaints. We continue to implement the Operation Manual for Customer Complaint Handling
communication devices were updated for each vessel, providing strong support for their operation on
Procedures and Management Measures, assisting customers in efficiently resolving issues based on standardized
international trade routes. During operation, all vessels’ equipment functioned normally and was
complaint handling processes.
recorded, effectively enhancing the navigation safety and communication capabilities of the vessels.
Meanwhile, as one of our important measures to promote safe navigation and digitalized/intelligent
maritime operations, the installation of CCTV monitoring systems continued progress. As of the end of
the reporting period, all our vessels have been equipped with CCTV monitoring systems, enabling real-
Receive Record Preliminary Determine Detailed Rectify Customer Record
time monitoring of various areas on the vessels. This has further strengthened the safety management Complaint Complaint Investigation Responsibility Investigation the Issue Feedback and Analyze
level and emergency response capabilities of the vessels. Through equipment upgrades and the
installation of CCTV monitoring systems, the navigation safety and digitalized/intelligent management
level of our vessels have been significantly improved.
Complaint Resolution Process
Crew Excellence Recognition Program
During the reporting period, the Company received a total of 65 complaints
To recognize ships and crew members who have excelled in their operations, we have established about products and services, a year-on-year decrease of 62%, and the complaint
a recognition program for outstanding ships and crew members. The evaluation process strictly handling rate was 100%.
follows the guidelines outlined in the evaluation notice issued by the Safety Supervision Department,
ensuring fairness, impartiality, transparency, and objectivity. We select "Excellent Ships" based
on their outstanding performance in all aspects, including safety, efficiency, and environmental
protection. "Excellent Crew Members" must demonstrate a strong work ethic, a proactive attitude,
and an innovative spirit. They should be able to solve technical problems on board, serve as role
models within the team, and achieve excellent results in peer evaluations. We present gifts ranging
in value from 800 to 5,000 RMB to the awarded crew members, along with medals, certificates, and
other honorary proofs, to acknowledge their outstanding contributions to the Company. We believe
the program will further motivate all crew members to continue pursuing excellence and drive the
business to next level.
Deeply Exploring Customer Value 48 Deeply Exploring Customer Value 49
Digital Shipping Digital Platform Management
Transformation
E-commerce
Platform
Zhonggu Logistics aims to enhance business
Cargo
Digitalization is a new engine for the shipping industry to move towards high-quality development and is the key collaboration and service capabilities by
Tracking
to enhance the efficiency of resource allocation, grasp the pulse of the times, and seize the strategic opportunities operating its business in a digital environment, Bill Switching
System for
in the unprecedented changes of the century, as well as one of the vital means to promote the innovation and driving its own digital transformation efforts System
Foreign Trade
development of the shipping business and stimulate the new kinetic energy. Zhonggu Logistics adheres to the based on actual demands, and committing to
corporate goal of “first-class enterprise, first-class talents, first-class performance and first-class return”, and building a smart and efficient digital shipping
is committed to promoting the digital transformation of the shipping industry, serving the national strategy of a system. We have established a digital platform Digital
strong maritime nation and promoting the development of the Maritime Silk Road. management system and developed and Platform
deployed six core systems: the Zhonggu
Cargo
E-commerce Platform, Bill Switching System,
Digital Strategic Goals Tracking Tugging
Tugging System, Ship Operation System, Cargo
System for
Tracking System for Domestic Trade, Cargo System
To further improve the resource allocation Digitalization Domestic
Tracking System for Foreign Trade, providing Trade
efficiency of the Company and achieve the
customers with comprehensive information
goals of transparency, efficiency, green and Ship
safety of business operations, the Company services throughout the logistics process.
Operation
has clearly put forward the development System
strategy of the logistics system:
digitalization, three-dimensionalization,
Digital Technology Innovation
Platformization and mobilization. We are
firmly orientated towards scientific and Internet Shipping Three-
Mobilization
technological innovation, continuously dimensionalization
increasing R&D investment and As one of the first Chinese enterprises that have introduced the Internet into shipping, Zhonggu Logistics insists on
accelerating the transformation and the research, development and application of technology while making full use of technological advantages. Relying
application of achievements. Adhering to on existing technologies, we have enhanced research and development of electronic data software, RPA technology,
the goal, we optimize the digital platform AI and other intelligent innovation technologies to enhance our business management capability.
management system, actively promote
the practice of technological innovation, •We have achieved electronic data interchange (EDI)
and provide customers with a solid and Platformization integration through the EDI software for the ports and yards.
reliable guarantee with excellent safety Electronic data •The Company has comprehensively realized e-commerce
management capabilities. software booking without written authorization. The electronic booking
rate reaches up to 100%.
Zhonggu Logistics has fully integrated the group business and financial data flows, establishing a unified perspective •The B2B automatic data docking empowers the
on financial management that provides solid data support for decision-making analysis, forming effective production of enterprises greatly.
management control measures. We focused on deepening the application of big data, enhancing our data output Robotic process •Through faster and more accurate processing of
and service capabilities for other business segments through the implementation of multiple data application
automation (RPA) customers'business documents, we provide customers with
scenarios. In terms of business system construction, we have emphasized improving the scalability and flexibility more efficient and reliable services.
of the systems, successfully building a comprehensive order processing center that integrates sea freight, road
transport, rail transport, and barge transport. In addition, we deeply analyzed customer needs and achieved •AI photo recognition technology is used to realize the
deep integration with customer systems, enabling direct data exchange and significantly enhancing the customer AI approves the fast approval of container repair quotation, repair review,
experience. At the same time, we attach great importance to data collection and governance, integrating data repair requiries automatic account reconciliation, etc., which ensures data
resources from various systems and modeling data based on business scenarios to provide comprehensive and accuracy while improving efficiency.
accurate data service support for business development.
Deeply Exploring Customer Value 50 Deeply Exploring Customer Value 51
Digital Twin System for Qinzhou Yard
Data Security Management
Zhonggu Logistics has successfully applied a digital twin system at Qinzhou Multimodal Container Logistics Zhonggu Logistics strictly complying with the relevant laws and regulations of business locations and established
Base, marking a deep integration of information technology and logistics management. Our digital twin system the Information Security Management System of Shanghai Zhonggu Logistics Co., Ltd. to ensure data security. We
utilizes high-fidelity virtual modeling technology to accurately replicate the physical environment of the ensured data security through security information disclosure and deepened cooperation with third-party service
logistics base, including but not limited to the physical layout, architectural structures, and equipment status, providers, through regular case analysis, business asset sorting and vulnerability scanning, ensuring the security
while continuously collecting and updating real-time data to ensure consistency between the virtual model and and controllability of online external services.
the actual base. Furthermore, the system deeply integrates actual production data from the base, such as yard
cargo throughput, transportation times, and equipment utilization rates. Through information collaboration
means, it achieves information connectivity between the terminal and the yard, ensuring that the entry and exit Website and application security assessment
of containers are traceable and that container pickups as well as
•Leverage the application development lifecycle, comprehensively identify cybersecurity issues
returns are well-documented. These initiatives and the data they
to ensure software security at all times.
generate not only drive real-time changes in the virtual model but
also powerfully support in-depth analysis and decision-making Website and application security reinforcement
optimization for base operations. Enabling real-time monitoring
of the actual operational situation of the base through the system, •Improve the rationality of application code deployment to continuously enhance security.
providing a comprehensive view of production activities and
significantly enhancing the intelligence level and operational Filtering of external threats
efficiency of the base.
•Deploy web firewalls, IPS, and other devices to monitor, filter, and log malicious external access
attempts.
Personalized System Development Status monitoring
•Implement monitoring of the status of protected application pages and synchronously monitor
We actively share outstanding digital experiences within the industry and meet the digital needs of our clients and
website access log directories to determine if any attacks have occurred.
third-party enterprises. During the reporting period, we assisted COFCO Sugar in establishing a comprehensive
information management system, achieving system integration, and facilitating collaborative business development.
Emergency response
•For security incidents with a higher likelihood of occurring, promptly prepare contingency plans
COFCO Sugar Integrated System and conduct drills, striving to report, handle, and summarize the incidents in the most efficient
and reasonable manner possible after they occur.
During the reporting period, Zhonggu Logistics conducted in-depth system integration with COFCO Sugar.
Through automatic interface retrieval of consignment information, we ensured the accuracy and timeliness Data security management
of the information while synchronizing logistics transportation dynamics, enhancing the transparency and
efficiency of logistics management. We focused on increasing the automation of key business process nodes, •Strictly enforce backup mechanisms for applications, databases, and documents, and ensure
simplifying data entry and processing, and reducing the risk of human error. One employee can now complete that backup data is stored independently of production and office environments.
the workload previously handled by three, freeing up productivity and providing a smooth and efficient
business experience. This project significantly improved Zhonggu Logistics' capability and competitiveness. As
the first service provider to interface with COFCO Sugar, this system facilitated in-depth business cooperation Data Security Management Measures
between the two parties. As of the end of the reporting period, the system is widely used to serve COFCO Sugar
in the Northeast, Southeast, North China, and other regions, enhancing operational efficiency and customer Upgrade and Optimization of the Security Management System
satisfaction.
Against the backdrop of accelerating digital transformation, Zhonggu Logistics has implemented a series of
systematic optimization projects to break through operational efficiency bottlenecks. To address efficiency
issues caused by cumbersome operations in the business system, we have reconstructed the quick menu
function based on user behavior data analysis, utilizing intelligent algorithms to prioritize the display of
frequently used modules. In addition, we have synchronously upgraded the asset management system,
leveraging the function of automatically collecting device information upon terminal login to transform the
traditional manual computer inventory model into real-time digital management, thereby steadily improving
the accuracy of asset inventory.
Deeply Exploring Customer Value 52 Deeply Exploring Customer Value 53
Privacy Protection Measures We prioritize cooperation with suppliers that have obtained system certifications. During the reporting period,
several of our suppliers have obtained system certifications including ISO 14001, ISO 45001, and ISO 9001.
Zhonggu Logistics strictly adheres to relevant laws and regulations on privacy protection and has established
information security management and customer privacy management systems. We follow the principle of collecting
For suppliers lagging in the evaluation, we have further clarified specific supplier exit rules. All suppliers
the minimum amount of information necessary and are committed to implementing full-process management of
should prepare for subsequent work in accordance with the handling opinions issued after discussion by
customer privacy protection starting from the source of information. We regularly conduct information security drills
the evaluation committee. For suppliers with an annual evaluation score below 60 points, the evaluation
and strictly carry out measures such as screening for weak passwords in the system and inspecting information
committee could terminate their cooperation if they fail to make sufficient improvements within a fixed period.
storage environments. We are dedicated to improving the privacy information management system and enhancing
the ability of our employees to protect all types of information. During the reporting period, we conducted a phishing
email information security protection drill for 296 employees, during which 6 employees submitted personal
information. After the drill, we issued a summary report on the drill situation and provided relevant safety training
and educational resources, aiming to enhance employees' safety awareness and response capabilities, ensuring that Annual Supplier Evaluation
the Company can respond quickly and effectively to cybersecurity challenges.
To enhance the Company's supply chain management level, recognize outstanding suppliers and service
Strengthening Supply
providers, and motivate suppliers to continuously improve service
quality, we organized an annual supplier evaluation during
the reporting period. The evaluation covered four categories:
Chain Management
spare parts, materials, lubricants, and fuel, encompassing over
a hundred suppliers. The evaluation criteria included product
quality, supply capability, price reasonability, after-sales service,
and other dimensions. Through a rigorous evaluation process, we
ultimately selected the top ten gold medal suppliers. We held an
A stable and high-quality partnership is a crucial guarantee for the sustained development of Zhonggu Logistics. We award ceremony for these ten suppliers to recognize their service
adhere to relevant laws and regulations, establish an internal supplier management system, and rigorously conduct quality and outstanding contributions to ensuring the safe and
supply chain management work, integrating compliance and sustainability requirements into the entire process of green operation of our ships.
tender initiation, supplier onboarding cooperation, and evaluation.
Supplier Onboarding Green Fleet
During the reporting period, we introduced a "pre-approval principle" for newly onboarded suppliers in our During the critical period of the shipping industry's transition towards green and low-carbon operations,
supplier introduction process. Pre-approved suppliers are required to fill out the New Supplier Approval Form Zhonggu Logistics has actively responded to the national “dual carbon” goals by vigorously promoting
for the Procurement Department, covering dimensions such as supplier price advantages, product technical the construction and application of a new energy fleet. During the reporting period, through the Company's
parameters, and supply capabilities. Only after passing the approval process can they become suppliers of introduction of new fleets and guidance and promotion among existing fleets, a total of 88 new energy vehicles
Zhonggu Logistics. When new suppliers have been cooperating for a full year and achieves a 3A or above rating from 14 fleets were put into operation, transporting 3,592 TEUs (twenty-foot equivalent units). This achievement
in the Company's internal supplier evaluation, they can apply to join the Qualified Supplier List . Based on this not only reflects the Company's active exploration in the field of new energy but also demonstrates its firm
process, we onboarded one new spare parts supplier during the reporting period. determination to promote sustainable development within the industry. Based on the strong start in 2024 and
actual operational experience, the Company plans to further expand new energy vehicle transportation in 2025
Furthermore, during the reporting period, we introduced a trailer supplier system in the bidding process for to achieve broader environmental and economic benefits.
our nationwide fleet of suppliers, digitizing the bidding process and integrating integrity agreements and safety
Supplier Communication
operation standard documents. All participating fleet suppliers in the bidding process are required to study and
comply with these documents, and we conduct promotional training for bidding fleet suppliers during the bid
negotiation phase.
Zhonggu Logistics actively engages in two-way communication with its suppliers, committed to providing timely
Supplier Evaluation industry information and policy dissemination, and continuously conducting regular review plans to assess
suppliers' operational performance during the period. We closely monitor the dynamic release of government
During the reporting period, we further improved the marine material procurement management system information and promptly synchronize content related to our fleet supplier business with relevant suppliers. We
- the supplier evaluation system, detailing the standards and scoring rules for annual supplier evaluations, also organize necessary promotion and training meetings to facilitate essential communication and exchanges with
effectively guiding the annual supplier rating. Based on the specific needs of business activities, we adjusted the responsible personnel, scheduling managers, and drivers of our fleet suppliers. We continuously improve the
the weightings of price, service terms, and other dimensions in the supplier service evaluation, emphasizing efficiency of bilateral communication, actively listen to suppliers' opinions, understand their difficulties, and provide
the assessment of supplier technical service support feedback efficiency. This further meets the specific targeted training, striving to create an efficient supplier communication system.
needs of various business lines for suppliers and evaluates suppliers through a combination of qualitative and
quantitative methods. During the reporting period, we conducted a total of 12 supplier training sessions, with a total training duration of 24
hours, covering nearly 1,200 suppliers of Zhonggu Logistics.
Creating a Harmonious Community 54 Creating a Harmonious Community 55
Creating a
Harmonious Diversity and Equity
Community Zhonggu Logistics strictly adheres to employment-related legal regulations in all operational jurisdictions,
including the Labor Law of the People's Republic of China, the Labor Contract Law of the People's Republic
Zhonggu Logistics continues to refine its talent acquisition and human capital management of China , the Law of the People's Republic of China on Protection of Minors , the Company upholds fair,
frameworks, implementing strategic initiatives that systematically empower professional equitable, and non-discriminatory employment practices, maintaining strict compliance with legal
growth through strengthened competency development programs, performance-driven requirements. We expressly prohibit child labor and forced labor in all operations. During the reporting
incentive structures, and streamlined career progression pathways. We are committed to period, no incidents of non-compliance with child labor or forced labor regulations were recorded.
fostering an equitable, respectful, and inclusive workplace culture that values diversity,
while enabling continuous employee advancement through organization-wide training To enhance the scientific precision and operational effectiveness of our recruitment processes while
systems and cross-functional collaboration mechanisms. These integrated approaches standardizing employee conduct, we comprehensively revised the Recruitment Policy and the Employee
facilitate synergistic alignment between organizational objectives and individual career Handbook during the reporting period. These updates aim to cultivate a positive, collaborative work
aspirations, ultimately achieving sustainable co-development and collective value creation. environment and reinforce the Company's reputable corporate image.
To attract and select outstanding talents, Zhonggu Logistics has established a diversified recruitment
channel, covering on-site submission, online application portal, email submission, and application via
WeChat official account. Meanwhile, we adhere to the principles of diversity and fairness in recruitment,
continuously innovate recruitment strategies, and enhance the professionalism and effectiveness of our
recruitment efforts through a variety of initiatives, including off-campus experimental teaching bases,
campus job fairs, and industry-university cooperation.
Zhonggu Logistics has partnered with Guangxi University to jointly establish the
“Guangxi University-Zhonggu Logistics Internship and Practice Base”
In 2024, to deepen the integration of industry,
academia, and research, and to fully leverage
the strengths of both universities and
enterprises in teaching, research, production,
and talent resources, Zhonggu Logistics and
Guangxi University formally signed a university-
enterprise cooperation agreement to build
the “Guangxi University-Zhonggu Logistics
Internship and Practice Base.” Moving
forward, the two parties will engage in in-
depth cooperation in multiple areas, including
talent cultivation, teaching practice, and talent
employment. They aim to jointly promote
the coordinated development of education
and industry and deliver more outstanding
professionals to the sector.
Creating a Harmonious Community 56 Creating a Harmonious Community 57
As of the end of the reporting 349
period, Zhonggu Logistics Female
Zhonggu Logistics Partners with Shanghai Maritime University to Establish the
"Industry-Education Integration Graduate Joint Training Base" had a total workforce of 1,539
employees, of whom 1,532 were Total number of
full-time employees. The specific employees by
In 2024, Zhonggu Logistics entered into a deep structure of our workforce is as gender
strategic partnership with Shanghai Maritime follows: 1,183
University to jointly establish the "Industry- Male
Education Integration Graduate Joint Training
Base." Both parties will fully capitalize on their
respective strengths in the industry and academic Top-level management 43
fields, and engage in comprehensive university- 55
enterprise collaboration through a variety of Mid-level management 50 and above
cooperative models. This collaboration is aimed at 120
achieving resource sharing and complementary advantages, promoting mutual development, and
striving for a "win-win situation in industry and academia." Ultimately, the goal is to cultivate more
high-quality professional talents for the industry.
Campus Recruitment Fairs
Total number of Total number of 780
Zhonggu Logistics places great emphasis on university-enterprise cooperation and actively 709
employees by employees by 30 and
collaborates with multiple higher education institutions to continuously enhance the 31-50
professionalism and effectiveness of its recruitment efforts. During the reporting period, Zhonggu rank age below
Logistics organized several recruitment fairs and presentations, including the 2024 Campus
Recruitment Fair at Chang'an University, the 2024 Campus Recruitment Presentation at Shaanxi
University of Science and Technology, the 2024 Campus Recruitment Fair at Xi'an Shiyou University, Rank & file
and the "Enterprises on Campus - Zhonggu Logistics Campus Recruitment Thematic Session" 1,357
at Dalian Maritime University. These activities not only provided university graduates with the
opportunity to gain an in-depth understanding of Zhonggu Logistics but also attracted a large
number of outstanding talents to the Company.
Zhonggu Logistics places high importance on the rights and benefits of its employees, and is
committed to creating a high-quality working environment and development opportunities to
effectively reduce employee turnover. During the reporting period, the overall employee turnover rate
of the Company was 12%. We always respect the personal choices of our employees. For those who
submit resignation applications, we will handle their resignation procedures in accordance with laws
and regulations, ensuring the entire process is fair and transparent.
Indicator 2024 2023 Changes
University Shaanxi University of Science and Technology Total employee turnover rate 12% 16% -4%
Employee Male 11% 14% -3%
turnover rate by
gender Female 14% 19% -5%
Employee
turnover rate by 31-50 5% 13% -8%
Shiyou University Dalian Maritime University Above 50 13% 19% -6%
Creating a Harmonious Community 58 Creating a Harmonious Community 59
Talent
Development
External Training Programs for Senior Management Elite
Improve the Training Leaders Classroom Training
Management Measures
•Organized various forms, types, and •Conducted a series of 13 senior
management classroom training sessions,
Optimize the new employee frequent external training programs,
focusing on key areas such as strategic
Zhonggu Logistics has always adhered to the people- induction training system including management iron army special
decision-making, leadership enhancement,
training and "Profit Center · Growth
oriented philosophy, continuously optimizing the and innovative thinking cultivation, to create
System" special training.
onboarding training system for new employees and the elite classrooms, help management personnel
Establish the training
development training system for current employees. The at all levels improve their management skills,
evaluation mechanism
Company places great emphasis on employee training and consolidate team wisdom, and promote the
development, committed to fostering employee growth implementation of strategies.
and laying a solid foundation of talent for the sustainable
development of the enterprise. Talent Management and Cultivation System
New Employee Training Establishment of New Employee
During the reporting period, Zhonggu Logistics revised and improved the Training Management Measures, Training Materials
further standardizing the training work for new employees during their probationary period across various
units. By unifying management standards and optimizing the onboarding training system, the Company has •Planned and organized the 2024 •Completed the compilation and printing
provided more systematic and targeted training content for new graduates during their probationary period. new employee training for the Group, of the Company's 2024 new employee
This helps them quickly integrate into the Company’s culture, become familiar with their job responsibilities, tracking the learning progress and work training materials, standardizing the
and smoothly transition into their roles. Zhonggu Logistics has also established a comprehensive assessment performance of new employees throughout content and standards of training to ensure
the process to ensure they quickly adapt to the systematicness and coherence of new
plan for training work, and assessments and comparisons are conducted based on this plan. The assessment
job requirements and inject fresh vitality into employee learning.
plan covers three core indicators: internal training within the Company, onboarding training, and external
the Company's business development.
training. Through a scientific and rational evaluation system, the Company encourages all units to place high
importance on employee training, thereby effectively improving the quality and effectiveness of training.
“Profit Center · Growth System” Special External Training
Zhonggu Logistics has always placed employee capability development at a strategic level. By constructing
a tiered and categorized training system, we systematically enhance employees’ professional competence,
management skills, and team collaboration efficiency, thereby injecting talent momentum into the Company's During the reporting period, approximately 30
high-quality development. We design differentiated development paths for employees at different levels and senior management representatives from the
create a full-cycle development mechanism that covers all staff members: New employees quickly integrate headquarters and regional divisions participated
into the corporate culture and business processes through immersive onboarding training, while current in a three-day "Profit Center · Growth System"
employees rely on progressive capability enhancement programs to achieve continuous growth. We have also special external training in two separate groups.
innovatively adopted a blended learning model that combines online and offline modes, allowing employees The core concept of this training was to optimize
to choose their learning paths according to their needs and significantly improving the effectiveness of the organizational structure and innovate
training. business models to transform the Company into
a platform where each department becomes
an independent profit center. This approach aims to fully decentralize objectives, interests,
To support the implementation of the Company's strategy and the development of a talent pipeline, responsibilities, and operations, thereby stimulating the operational vitality of the organization. It
we have built a strategy-oriented training system that focuses on converting training outcomes into encourages employees to deeply engage in business operations and take on profit responsibilities,
organizational efficiency. During the reporting period, we have efficiently advanced and completed several promoting a culture where all staff become business operators.
key initiatives, including the tiered and categorized development plans, external training programs for
managers, executive elite seminars, the establishment of a standardized new employee training system,
and the development of supporting teaching materials. This has enabled precise alignment between
talent development and business growth.
Creating a Harmonious Community 60 Creating a Harmonious Community 61
Senior Management Elite Classroom Zhonggu Logistics has thoroughly considered the growth patterns and development needs of its employees,
and has designed an internal position hierarchy system and career development paths that align with the
Company's strategic development requirements. We actively advocate for employees to achieve vertical
To systematically consolidate the management
promotion within their respective sequences and encourage horizontal mobility across sequences. This
wisdom and practical experience of the senior
approach broadens the career growth paths for employees and also lays a solid foundation of talent for the
executive team, Zhonggu Logistics has focused
on developing the “Elite Classroom”series Company's rapid expansion.
of training programs this year. The aim is to
build an internal knowledge-sharing platform
and promote innovation and optimization of the internal training Senior Assistant Deputy Department
Graduate Supervisor Center Head
system. The program features senior managers from various centers and Supervisor Manager Manager Manager
regions as lecturers, who conduct in-depth sharing sessions around core
management topics such as strategic decision-making and leadership Headquarters Functional Management Sequence
enhancement. During the reporting period, a total of 13 sessions were
held, covering practical themes like “How to Improve Logical Thinking
Skills” and “Communication and Negotiation Techniques,” with over 4,000 participants in total. Graduate Supervisor
Senior Deputy Functional Regional Senior
Supervisor Manager Department Manager Manager
Through the continuous operation of the Elite Classroom, the Company has successfully achieved
systematic accumulation and inheritance of management experience, significantly enhancing the Regional Functional Management Sequence
strategic thinking abilities, leadership levels, and innovative awareness of management personnel,
thus injecting sustained momentum into organizational capability building.
Graduate Supervisor Senior Supervisor Office Director Regional Senior
Manager
New Employee Training Materials
Regional Port Business Sequence
In 2024, we successfully compiled a unified training material
suitable for all newly hired employees, systematically and modularly
organizing the basic knowledge and processes for each position Senior Developer
with the aim of standardizing training criteria. This set of materials
consists of 7 volumes, covering the theoretical knowledge and
operational procedures for 6 major types of positions: route Senior
Architect
operations, finance and business, marketing, multimodal transport Architect
mode, route management, and container management. It also Junior Intermediate Senior
includes content on organizational and cultural development, helping new employees quickly IT Junior
IT Director
become familiar with their roles and improving the efficiency of onboarding. Management
Indicator Unit 2024 2023 Changes Product Category
Total training input RMB10,000 295 290 2%
Information Technology Sequence
Total number of trainees Person times 234 / /
Caring for Employees
Average number of hours of training
Hour 51.15 44.28 15.51%
peremployee
Average training Male Hour 50.85 44.50 14.28%
hours completed per
employee by gender Female Hour 52.15 43.62 19.55%
Zhonggu Logistics has consistently placed employee care at the core of its corporate culture development,
Top-level establishing a comprehensive employee care ecosystem that continuously strengthens organizational cohesion.
Hour 56.09 48.00 16.86%
management Our commitment manifests through multiple dimensions: optimizing employee benefits and compensation
Average training systems, developing transparent communication channels, enhancing occupational safety and security
hours completed per Mid-level frameworks, and organizing diverse cultural and sports initiatives. These concerted efforts systematically nurture
Hour 49.04 46.00 6.61%
employee by rank management employees’ sense of belonging, workplace fulfillment, and overall satisfaction, ultimately cultivating a human-
centric corporate environment that values warmth and professional excellence.
Rank & file Hour 51.13 43.96 16.32%
Creating a Harmonious Community 62 Creating a Harmonious Community 63
Improving Compensation Mechanism Mutual Assistance Between Employees
Zhonggu Logistics consistently regards the construction of a compensation system as a core component of its Zhonggu Logistics is always ready to help employees
talent strategy. By continuously optimizing the compensation and benefits system, we ensure that employees to resolve their difficulties in production and life.
receive fair treatment that is competitive in the market. Based on industry benchmarking and market research, Through the Zhonggu Care Fund, the Company
we have established a compensation incentive mechanism oriented towards capability and performance provides comprehensive support for employees and
contributions, effectively stimulating employee potential and innovative vitality. This has helped the organization their families, especially in times of emergencies and
attract and retain a large number of outstanding talents. Specifically, we have taken the following systematic significant difficulties, offering timely assistance. During
wedding gifts major illness
measures: the reporting period, the fund expended a total of 59,000
assistance
RMB, benefiting 56 employees. This included 32 instances
of wedding gifts, 20 instances of childbirth subsidies, 1
Performance Assessment and Compensation Linkage
instance of major illness assistance, and 3 instances of
•Zhonggu Logistics has established a linkage mechanism between performance assessment and condolences for the passing of a family member. This 20 instances
compensation incentives, deeply advancing the construction of a market-oriented compensation 3 instances of
initiative not only reflects the Company's deep care for its of childbirth
system. This fully stimulates employees' initiative and innovative potential, achieving mutual condolences
employees’ lives but also demonstrates the Company’s subsidies
empowerment of individual value and organizational development.
sense of social responsibility. By combining material
Multidimensional Performance Assessment System support with emotional comfort, we have effectively
enhanced employees’ sense of belonging and cohesion,
•Zhonggu Logistics implements a multidimensional performance assessment system for employees fostering a warm and harmonious corporate culture. Donation Through the Zhonggu Care Fund in 2024
of different categories and positions. The compensation level of employees not only reflects the
value of their positions but is also closely linked to the achievement of individual performance and
Enriching Recreational and Sports Activities
business objectives, ensuring the fairness and incentive nature of the compensation system.
Long-term Incentive Plan
•The Zhonggu Shipping Group regularly provides feedback and rewards for employees' Zhonggu Logistics consistently places employee welfare at the core of its operations, continuously enhancing
contributions through long-term incentive plans.
team cohesion and employee happiness through a variety of cultural and sports activities, fostering a vibrant
corporate culture atmosphere.
Emphasize Communication with Employees
During the reporting period, Zhonggu Logistics carried out a diverse range of cultural and sports activities
centered on employee care and team building, fully reflecting the Company's emphasis on employee welfare.
We organized activities such as the Hui-Hang hiking team building, a health weight loss competition, and
badminton matches, which not only strengthened team cohesion but also promoted a healthy lifestyle.
During the reporting period, Zhonggu Logistics established a two-way feedback mechanism to facilitate smooth Additionally, in conjunction with significant holidays, the Company held events like the International Women's
communication channels for employees. The Company introduced a performance feedback system that clearly Day recognition ceremony, Mid-Autumn Garden Party, and Thanksgiving themed activities. Through the
defines work objectives and evaluation criteria. Employees can regularly engage in performance assessments exchange of flowers, gifts, and service awards, the Company conveyed its care and recognition for its employees.
and feedback with their immediate supervisors to understand their performance and receive guidance for Furthermore, activities such as a friendly basketball match with CICC Wealth further promoted communication
improvement. This enhances communication between management and staff, and promotes work efficiency and and cooperation among employees. These activities not only enriched employees' leisure lives but also created
personal development. a positive corporate culture atmosphere, enhancing employees' sense of belonging and happiness.
In addition, Zhonggu
Direct Manager
Logistics regularly
•Provides employees Hui-Hang Hiking Team Building Activity
conducts employee
with work objectives and
satisfaction surveys that
evaluation criteria During the reporting period, we organized and
cover various dimensions
such as compensation, conducted a hiking team building activity on the Hui-
performance, training, Hang Ancient Path. The purpose of this event was to
and career development. enhance team cohesion and the spirit of cooperation
The survey results indicate through outdoor hiking, while also allowing
Employee employees to get close to nature and experience the
that the Company's
management level •Regularly conducts performance charm of outdoor sports. More than 150 employees
continues to improve, and assessments and feedback with actively participated, and the activity achieved good
the direct manager team building results, providing employees with an
employee happiness is on
the rise. unforgettable collective experience.
Two-way Feedback Mechanism
Creating a Harmonious Community 64 Creating a Harmonious Community 65
"Zhonggu Logistics Women of Distinction & March 8th Red Flag Bearers"
Recognition Ceremony
On the occasion of International Women's Day, to
Health and
Safety
honor the outstanding contributions made by female
employees in the Company's development, we held the
"Zhonggu Logistics Women of Distinction & March 8th
Red Flag Bearers" recognition ceremony on March 8th
in the training room on the 18th floor. The Company
prepared flowers for each female employee at the
headquarters to express our festive greetings and Zhonggu Logistics consistently prioritizes the health and
sincere respect. safety of its employees, strictly adhering to national laws and
regulations such as the Safety Production Law of the People's
Republic of China and the Law of the People's Republic
of China on the Prevention and Control of Occupational
First Health Weight Loss Competition Badminton Match Diseases . The Company ensures comprehensive protection
of employees' legal rights and interests. We have established
a number of internal safety management systems, including
the General Principles , which clarify safety management
objectives and provide detailed safety standards for the
operation of vessels, ensuring that all operational procedures
meet the highest safety standards.
We have established a comprehensive safety management system and regularly conduct safety training
and emergency drills to ensure that employees work in a safe and healthy environment, thereby laying a
solid foundation for the sustainable development of the Company. During the reporting period, we have
completed the annual review and certification of our occupational health management system.
Zhonggu Logistics and CICC Wealth Joint
Garden Party Themed Event
Basketball Friendship Match
Crew Joint Drills
During the reporting period, we carried out two planned ship-shore joint emergency drills as
scheduled to enhance team coordination and emergency response capabilities. On May 31st, we
conducted a drill for vessel loss of control and emergency towing operations to test ship-shore
coordination and towing procedures. On November 22nd, we held a drill for shore power failure
and man-overboard scenarios to evaluate emergency responses in complex situations. These
two drills reinforced emergency awareness, optimized processes, and laid the groundwork for
handling unexpected events, ensuring the safe and stable operation of our vessels.
Thanksgiving Themed Event Zhonggu Book Club
Creating a Harmonious Community 66 Creating a Harmonious Community 67
Crew Training Program
Rural Revitalization
and Welfare
During the reporting period, Zhonggu Logistics officially
launched the first phase of its onboard crew training
program, and by December, ten successful sessions had
been conducted. The training content is comprehensive
and practical, covering basic knowledge and skills Zhonggu Logistics is not only concerned with the development of the surrounding communities but also takes it as
related to firefighting and life-saving operations on ships, its responsibility to give back to society. The Company actively engages in the national strategy of rural revitalization
key areas of current domestic and international ship and social welfare activities. Through various forms such as donations, public welfare activities, and consumption
inspections, as well as the latest international conventions assistance, the Company contributes to the all-around development of rural areas. At the same time, we encourage
and regulations that have come into effect. In terms of our employees to participate in community public welfare activities to jointly create a harmonious and beautiful
training format, we have adopted flexible and diverse social environment and convey positive energy.
methods, including on-site training organized during ship visits, remote video training during ship
anchorages, and routine training organized by the captain onboard, ensuring the efficiency and
continuity of the training.
Rural Revitalization
Zhonggu Logistics actively responds to the national rural revitalization strategy, integrating the consolidation
We are continuously improving the mechanisms of our occupational health and safety system. The following and expansion of poverty alleviation achievements deeply into the Company's development strategy. During
table presents the occupational health and safety performance during the reporting period: the reporting period, we fulfilled our corporate social responsibility and promoted the sustainable development
of the Company by actively participating in rural revitalization projects, achieving a complementary balance
between social and commercial value. During the reporting period, our total expenditure on rural revitalization
Indictor Unit 2024 2023 2022 Changes
amounted to 362,048 RMB.
Number of work-related deaths in
Person 0 0 0 -
the past three years
"Warming Hearts and Helping Villages" Activity
Days of work lost due to
Day 147 0 12
occupational injuries In the "Warming Hearts and Helping Villages" initiative organized
by the YuShu City Transportation Bureau, Huo Xiaojie from
Days of work lost due to the Northeast Regional Office of Zhonggu Logistics actively
Days/ million
occupational injuries per 0.0131 0 0.0008 participated. Together with relevant departments, he went deep
RMB
million RMB into Zhonghou Village, Tuqiao Town, to deliver rice, flour, oil,
calendars, and other New Year's gifts to 12 households that had
Work injury rate % 0.13 0 0.07 recently escaped poverty. This office responded positively to
the local government's call, enthusiastically engaged in public
Number of work-related injuries Person 2 0 1 welfare activities, and bridged the gap with the local community.
Seizing this opportunity, they widely promoted the public welfare
Number of work-related accidents No. 1 0 1 philosophy of Zhonggu Logistics, effectively enhancing the
Company's social visibility.
Number of Safety Drills No. 2,942 / / /
Total Hours of Health and Safety
Training
Hours 3,528 / / / Zhonggu Logistics Purchases Agricultural Products to Support Rural Revitalization
Coverage Rate of Health and Safety Against the backdrop of the rural revitalization strategy,
% 100 / / /
Training Zhonggu Logistics actively responds to national policies
by aiding rural economic development through the
Amount Invested in Work Injury procurement of agricultural products. In the winter of 2024,
RMB 228,716 / / /
Insurance the Company purchased approximately 9,000 kilograms of
high-quality apples from Shandong and 1,200 servings of
Coverage Rate of Work Injury Gu Huai steamed buns. These products were not only used
% 100 / / /
Insurance Personnel to express care and gratitude to employees, customers, and
partners but also demonstrated the Company’s support
Amount Invested in Safety
RMB 1,576,268 / / / for rural revitalization. By doing so, Zhonggu Logistics has
Production Liability Insurance
not only enhanced its social image but also contributed to
Coverage Rate of Safety Production the economic development of rural areas.
% 41 / / /
Liability Insurance Personnel
Creating a Harmonious Community 68 Creating a Harmonious Community 69
Public Welfare
Zhonggu Logistics consistently upholds a passionate commitment to giving back to society and actively fulfills its
social responsibilities. The Company continues to increase its investment in community welfare and volunteer
services, working hand in hand with communities to build a better future, fully demonstrating the noble
sentiment of enterprises in contributing to society and promoting the development of public welfare endeavors.
Public Welfare Book Charity Auction Public Blood Donation
During the reporting period, a total of 774 employees participated in social welfare activities, contributing
a combined total of 3,797 volunteer service hours, with community investment and public welfare activity
expenditures amounting to 46,756 RMB.
Community "Clean Home" Public Welfare Volunteer Activity
Volunteers from the Southeast Region of Zhonggu
Logistics joined hands with the Xin'gang Community
to actively participate in the "Clean Home" public
welfare volunteer activity. On the afternoon of the
event, the volunteers, armed with trash bags and
grabbers, worked in groups to meticulously search
for and thoroughly clean hidden areas of dirt, giving
the community a fresh new look. Headquarters Party Members' Book Charity "Protecting the Ocean, Together We Act"
Auction Themed Party Day
"Visiting Qingdao West Coast Special Education Center" Public Welfare Activity
Under the banner of "Zhonggu Public Welfare," we
extended warmth to the children of the Huangdao
District Special Education School, conveying societal
care through our actions and encouraging them to face
life with an optimistic and positive attitude, embracing
the beautiful world. At the same time, the Company
actively participated in the "Hand in Hand to Care for
Children with Disabilities, Heart to Heart to Protect
the Flowers of Our Motherland" initiative, focusing on
special groups and contributing Zhonggu Logistics’
strength to the social welfare cause. "Sanitation Workers' Day" Public "Protecting the Beautiful Earth, Zhonggu
Welfare Activity Logistics in Action" activity
Nursing Home Public Welfare Activity
To promote the spirit of Lei Feng and leverage the
exemplary and leading role of young party members,
in order to better serve the elderly in the community,
employees of Zhonggu Logistics will visit the nursing
home to carry out the “Learn from Lei Feng, Make
Dumplings, Deliver Warmth” volunteer service
activity. Through practical actions, they will deliver
care and affection to the elderly, conveying warmth
and concern.
Compliance in Operation 70 Compliance in Operation 71
Corporate Governance
Compliance in
Operation
Zhonggu Logistics strictly adheres to the requirements of laws and regulations, including the Company Law of the
People's Republic of China , the Code of Corporate Governance of Listed Companies , the Guidelines for Introducing
Independent Directors to the Board of Directors of Listed Companies , the Rules for the Shareholders' Meetings
of Listed Companies and the Guidelines for Articles of Association of Listed Companies , continuously improving
corporate governance and enhancing the level of standardized operation.
Zhonggu Logistics always pursuing “safe, efficient and green” development, and Governance Structure
has established a governance structure with Zhonggu characteristics that aligns with
the features of the logistics industry, supports the Company's strategic development, Zhonggu Logistics attaches great importance to the diversity and professionalism of board members. the board
and adapts to its production and operation. We conduct strict internal management in consists of nine members, including three independent non-executive directors, accounting for 33% of the total,
accordance with laws, regulations, and listing requirements, continuously improve our and the proportion of female directors, supervisors, and senior executives is 27%. The board has established four
internal control systems, and comprehensively build a risk management framework. specialized committees: the Strategy Committee, the Compensation and Appraisal Committee, the Nomination
We continuously enhance the standardization of our company's operations, effectively Committee, and the Audit Committee. In light with the Company's actual operational situation, we integrate the
improve our corporate governance capabilities, and achieve dual improvements in Company's actual operations, identify specific needs, emphasize maximizing the roles of the Board of Directors
operational quality and efficiency. and its committees, ensure the fulfillment of functions and responsibilities by shareholders' meetings, the
Board of Directors, the Board of Supervisors, and management, thereby safeguarding the shared interests of
shareholders and the Company.
Shareholders'
Meeting
Board of Directors Board of
Supervisors
Compensation
Strategy Nomination Audit Committee
and Appraisal
Committee Committee
Committee
We have implemented multiple initiatives to strengthen internal governance. Aligned with strategic development
needs, the Company is systematically advancing governance efficiency enhancement initiatives. We continuously
refine the corporate governance structure by optimizing the setup of Board committees and decision-making
authorization mechanisms, establishing a governance system with clear responsibilities and effective checks and
balances. Concurrently, we have instituted a compliance management negative list and embedded compliance
review processes. Furthermore, we have developed a three-tier risk control framework covering strategic,
operational, and supervisory levels. Building upon this foundation, we designed cross-departmental joint
decision-making mechanisms to create a closed-loop management model, which has significantly enhanced the
responsiveness to major decisions and the precision of resource allocation.
Compliance in Operation 72 Compliance in Operation 73
Compliance Operations
During the reporting period, we launched a month-long Integrity Promotion Month campaign to deepen anti-
Zhonggu Logistics strictly adheres to national laws and regulations such as The Company Law of the People's corruption efforts. Through educational programs and awareness initiatives, the campaign aimed to strengthen
Republic of China , industry standards, and internal group policies. Through a compliant and efficient internal employees' commitment to integrity and ensure compliance across operations. All employees signed a Compliance
governance framework, we support the Company's steady development. During the reporting period, we conducted Pledge to affirm adherence to corporate policies and professional ethics. Additionally, new hires were required to
dynamic monitoring and refined management of operational performance across key control metrics, including but sign a Position-Specific Integrity Commitment as a solemn vow to uphold ethical standards in their roles.
not limited to vessel load factor, port idle time, direct berthing rate, cost control, and asset management.
Building on a robust compliance system, Zhonggu Logistics provides regular compliance training to key directors,
supervisors, and senior management to ensure their understanding and adherence to relevant laws and policies. Business Ethics Training
Additionally, when regulatory adjustments occur, the Company promptly organizes policy analysis and delivers
targeted notifications and training to affected departments, ensuring alignment with the latest legal requirements. To foster employees' awareness of integrity and self-discipline, we prioritize the development of an integrity
corporate culture and have implemented practical and effective measures. The Company conducts specialized
During the reporting period, we actively arranged for directors, supervisors, and senior executives to participate anti-corruption and integrity training for both new hires and mid-to-senior management, aiming to elevate ethical
in training sessions on independent director system reforms organized by the Listed Companies Association of awareness across all staff and promote a culture of honesty and integrity. During training sessions, real-world case
Shanghai, aiming to elevate corporate governance standards. Our independent directors also attended specialized studies are integrated to illustrate the severe consequences of corruption and the profound significance of anti-
follow-up training at the Shanghai Stock Exchange to deepen their understanding of responsibilities and enhance corruption efforts, helping employees recognize the critical importance of ethical conduct for both the Company
execution capabilities. Furthermore, we distributed detailed guidelines and precautions on compliant trading and themselves. Additionally, the Company has established a robust oversight system and incentive mechanisms
of company shares to directors, supervisors, and senior executives via email, WeChat, and other channels. This to encourage voluntary adherence to integrity standards, collectively fostering a transparent and ethical workplace
proactive management strategy ensures all transactions comply with regulatory requirements, effectively mitigating environment. During the reporting period, the Company further solidified employees' understanding of compliance
potential violations. through an anti-corruption and integrity knowledge assessment. the test covered topics such as business operations,
Business Ethics
internal controls, anti-corruption policies, and legal regulations. A total of 1,033 valid responses were collected, with
an average score of 87.78 across the Company, demonstrating strong employee grasp of integrity-related knowledge.
During the reporting period, our business ethics training covered all employees, including the management.
Specifically, the total training hours for senior management, mid-level management, and frontline employees
reached 126 hours, 318 hours, and 2,733 hours, respectively.
Based on the core values of "loyalty, sincerity, and practicality," Zhonggu Logistics actively reinforces the mechanism
of "dare not corrupt, cannot corrupt, and do not want to corrupt,"ensuring the Company's operations are honest and
efficient. To strengthen the anti-corruption system, we have formulated and continuously implemented the "Anti-
Corruption and Integrity Management Measures" and the"Accountability Management Measures for Dereliction of Specialized Business Ethics Training for Senior Management
Duty and Violations."
We have established the Zhonggu Logistics Anti-Corruption and Integrity Construction Leading Group, with the the Company invited a prosecutor from the Hongkou District People's Procuratorate in
Company's chairman serving as the group leader, board members as deputy group leaders, and heads of various Shanghai to conduct a training session titled "Combating and Preventing Corruption
departments, regions, as well as wholly owned subsidiaries as members. Besides, the Company has established an in Private Enterprises" for the senior management team. The training explained in an
internal and external reporting mechanism, encouraging both personnel to actively report issues, thereby promoting accessible manner the corruption risks faced by private enterprises and corresponding
the construction of a tighter and more efficient anti-corruption system. governance strategies, significantly enhancing the leadership's awareness of integrity and
risk prevention capabilities. Following the training, the Company organized all employees
Management Measures
to study the content and produced an integrity-themed documentary. Through real-world
case studies and in-depth analysis, the documentary conveyed the critical importance of
ethical conduct, ensuring that integrity principles resonate deeply across the organization.
We actively advance the development of a commercial ethics culture, implementing diverse initiatives to enhance
ethical awareness across all employees. This commitment ensures the legitimacy and integrity of business practices,
laying a solid ethical foundation for sustainable development. During the reporting period, the Company conducted
a comprehensive review of employees and their relatives' holding positions in the Company or affiliated entities
to identify and mitigate potential conflicts of interest. This initiative not only strengthened transparency but also Public Screening of Integrity Awareness Documentary
provided data-driven insights for refining stricter compliance policies.
As the corporate governance structure continues to optimize and internal oversight systems mature, we rigorously To further strengthen employees' commitment to integrity, Zhonggu Logistics produced
enforce post-termination audit procedures for departing senior management. These audits include thorough reviews an integrity awareness documentary. The film vividly showcased real cases and provided
of their economic responsibilities during their tenure, serving as a deterrent to current executives and minimizing thorough analysis, clearly communicating the profound significance of ethical practices to
risks, thereby driving continuous improvement in management practices. all employees and embedding integrity into the corporate culture. The screening initiative
In business audits, internal corruption remains a key focus area. We employ in-depth analysis of operational notably elevated employees' ethical awareness and reinforced the Company's compliance
workflows, meticulous verification of financial records, and employee interviews to identify potential risks and non- culture, fostering a transparent and upright workplace environment. Moving forward,
compliant activities, safeguarding the healthy development of operations and the security of corporate assets. the Company will continue to prioritize integrity-building efforts by diversifying ethical
education programs and refining relevant systems. This will solidify the foundation for
sustainable development, ensuring steady and long-term growth on a path of compliance
and integrity.
Compliance in Operation 74 Compliance in Operation 75
Risk Management Management Measures
The Internal Control Department has proactively implemented initiatives to elevate organization-wide
awareness and execution capabilities, driving deeper integration of internal controls and safeguarding the
Zhonggu Logistics actively optimizes risk assessment and early warning mechanisms, strictly enforces Company's stable development.
risk control procedures, and advances the integration of risk governance systems across all operational
processes. As of the end of the reporting period, the Company maintained 103 internal control policies, During the reporting period, the Company systematically advanced the construction of an internal control
with 29 revised or enhanced in 2024. defect remediation mechanism, creating a full-cycle management loop of "plan review – process supervision
– outcome evaluation." A tiered supervision framework was implemented, requiring responsible units to
Management Structure develop targeted rectification plans for expert review, alongside digital progress tracking and regular reporting.
The Internal Control Department dynamically consolidated remediation progress developed cross-level
visual dashboards and conducted root-cause analyses for delayed tasks. By strengthening process oversight
The Company established a Risk Prevention and Control Task Force, led by the General Manager and and outcome integration, the Company promoted systematic refinement of business workflows, optimized
composed of heads from the Risk Control Center and other departments, to institutionalize and systematize policy design and execution standards, and achieved deeper alignment between management systems and
internal control operations. Regular internal control evaluations are conducted to inspect compliance across operational practices, continuously enhancing control efficacy and organizational efficiency.
departments. During the reporting period, the Risk Control Center established an Internal Control Department,
which operates with high independence to objectively and rigorously fulfill its duties, reflecting the Company's Zhonggu Logistics has established a robust compliance management system, including a department-specific
commitment to strengthening its internal control framework. The department's responsibilities extend legal and regulatory database to underpin compliant operations. Building on this foundation, the Company
beyond designing and refining control systems to overseeing and reviewing policy implementation, ensuring deepened the enforcement of internal controls by integrating control evaluations into performance assessment
operational compliance and effective risk mitigation. system. This approach heightened employee focus on compliance, embedding control requirements into daily
operations and significantly strengthening risk prevention capabilities.
Legal Department
Risk Management Training
Zhonggu Logistics treats risk awareness as a strategic pillar for sustainable growth, systematically building a
Risk Control
Center risk management education system that spans all roles and operational cycles. Through tiered and categorized
training programs, a comprehensive competency framework has been developed: mandatory courses for new
employees reinforce professional ethics, targeted training for key positions strengthens integrity standards,
Internal Control and practical drills for business lines address industry-specific risks. Additionally, the Company collaborates
Department with judicial authorities to deliver customized legal education, establishing a knowledge-to-action conversion
Financial Center mechanism to continuously enhance risk identification and compliance decision-making capabilities. These
efforts lay a talent foundation for building a modern, industry-leading risk control system in the shipping sector.
Integrity and Self-Discipline Training for New Employees
General Manager Safety Center
During the reporting period, the Company organized a training event titled "New Employee
Training - Fasten the First Button of Your Career, Practice Integrity and Self-Discipline"
for our new hires in 2024. The training was organized by the Internal Audit Department
Marketing Center and attended by nearly 100 new employees from the 2024 cohort. The training content
covered four main aspects: the responsibilities and roles of the audit department, laws,
regulations, and company policies, case studies, and reporting mechanisms. The objective
of the training was to provide new employees with an in-depth understanding of the
Company's rules and regulations regarding integrity, to help them grasp the Company's
Administration institutional requirements through the analysis of past cases, to clarify employee behavior
Center norms, and ultimately to cultivate a sense of integrity and self-discipline among new
employees.
Risk Control Management Structure
Appendix 76 Appendix 77
Index
Index to the Guidelines No. 14 of Shanghai Stock
GRI Index
Exchange for Self-Regulation of Listed Companies—
Sustainability Report (Trial)
From January 1 to December 31, 2024, Shanghai Zhonggu Logistics Co., Ltd. reported
Instructions for use
the information cited in this GRI index with reference to the GRI standard.
Dimension Number Topic Article Chapter GRI 1 GRI 1: Basic 2021
Disclosure
issue/item
GRI 1: Basics 2021
GRI 2: General Disclosures 2021
Environment
Employees and Activities
Diversity and Equity, Talent
Governance
Social
Equal Treatment of Small and 2-17 Collective knowledge of the highest governing body ESG Governance System
Medium-sized Enterprises
Strategies, Policies and Practices
Stakeholder Engagement
Data Security and Customer Privacy
Protection
GRI 201: Economic Performance 2016
Governance 19 Stakeholder Communication Articles 53 Stakeholders Communication 201-1 Direct economic value generated and distributed Key performance
related to
sustainable GRI 205: Anti-corruption 2016
Anti-Commercial Bribery and Anti-
development 20 Articles 55 Business Ethics
Corruption 205-1 Operations assessed for risks related to corruption Business ethics
Appendix 78 Appendix 79
Performance Summary
Environment
GRI 302: Energy 2016
GRI 303: Water Resources and Wastewater 2018 Environment
Issue Indicator Unit 2024
Gasoline kWh 1,436,680.23
Diesel kWh 242,131,725.18
Low sulfur fuel oil kWh 2,806,590,130.45
Lubricating oil kWh 25,757,866.83
GRI 305: Emission 2016
Energy consumption Total direct energy consumption kWh 3,075,916,402.69
Electricity kWh 5,062,713.69
Total indirect energy consumption kWh 5,062,713.69
Total energy consumption kWh 3,080,979,116.38
Total energy intensity kWh/ million RMB 273,664.12
Scope 1 GHG emissions Ton of CO2 equivalent 807,147.24
GRI 306: Waste 2020
Scope 2 GHG emissions Ton of CO2 equivalent 2,716.65
GHG Emissions Total GHG emissions Ton of CO2 equivalent 809,863.89
Ton of CO2 equivalent/
million RMB
Society Water consumption intensity Ton/million RMB 8.57
GRI 401: Recruitment and Employment 2016 Water resources Freshwater consumption Ton 56,532.00
Benefits provided to full-time employees that are not provided to temporary or Water cycle and reuse rate % 0.74
part-time employees
Total wastewater discharge Ton 16,917.60
GRI 403: Occupational Health and Safety 2018 Wastewater
Wastewater discharge intensity Ton/million RMB 1.50
Nitrogen oxides Ton 21,005.81
Sulfur oxides Ton 2,414.46
Waste gas Suspended particles and particulate matters Ton 519.66
Total waste gas emissions Ton 23,939.93
Waste gas emission intensity Ton/million RMB 2.13
Prevention and mitigation of occupational health and safety impacts directly linked
by business relationships
Waste
GRI 404: Training and Education 2016 Consumables Amount of paper used Ton 12.04
Investment in
% 0.06
protection to operating income
GRI 405: Diversity and Equal Access 2016
Society
GRI 406: Anti-Discrimination 2016
GRI 408: Child Labor 2016 Number of employees
GRI 409: Forced or Compulsory Labor 2016 Permanent employees Person 1,532
Operations and suppliers at significant risk for incidents of forced or compulsory By type of employment Dispatched labor Person 7
labor
Part-time employees Person 1,183
GRI 414: Social Assessment of Suppliers 2016
Male Person 349
Strengthening Supply Chain By gender
Management
Top-level management Person 120
GRI 418: Customer Privacy 2016
By rank Mid-level management Person 1,357
Substantiated complaints concerning breaches of customer privacy and losses of
customer data Rank & file Person 780
Appendix 80 Appendix 81
By age 31-50 Person 43 Female Hour 18,200
Chinese mainland Person 0 Mid-level management Hour 5,885
By region
Hong Kong, Macao and Taiwan Person 0 Rank & file Hour 69,390
Employee Turnover Rate Average number of hours of Male Hour 50.85
Overall turnover rate Turnover rate % 12 training by gender Female Hour 52.15
Male % 11 Top-level management Hour 56.09
By gender Average number of hours of
Female % 14 Mid-level management Hour 49.04
training by rank
By age 31-50 % 5 Compensation and Revenue
Compensation and revenue
Chinese mainland % 12 Income per capita RMB 7,498,004
By region Hong Kong, Macao and Taiwan % 0 Supply Chain
Overseas % 0 Supplier Total number of suppliers No. 4,423
Occupational Health and Safety China Mainland No. 4,336
Work-related death Number of work-related deaths Person 0 By region Hong Kong, Macao and Taiwan No. 36
Number of work-related deaths per million RMB Person/million RMB 0 Overseas No. 51
Days of work lost due to occupational injuries Day 147 Products and Services
Days of work lost due to occupational injuries Number of incidents recalled for safety and
Day/million RMB 0.0131 Recall No. 0
Work-related injuries per million RMB health reasons
Work injury rate % 0.13 Number of complaints received about products
No. 65
and services
Number of work-related injuries Person 2
Handling rate of complaints received about
Number of work-related accidents No. 1 % 100
Complaint products and services
Number of safety drills No. 2,942
Number of customer complaints per million
No./million RMB 0.0058
Number of safety trainees Total Hours of Health and Safety Training Hour 3,528 Chinese Yuan
Coverage Rate of Health and Safety Training % 100 Customer satisfaction % 93
Investment Amount in Work-related Injury Intellectual Property
RMB 228,716
Insurance
Patent Number of patent applications No. 0
Coverage Rate of Work-related Injury Insurance
% 100 Trademark Number of trademarks held No. 3
Personnel
Safety production investment Software copyright No. 12
Investment Amount in Work Safety Liability
RMB 1,576,268 Copyright
Insurance Number of software titles per million Chinese
No./million RMB 0.0011
Yuan
Coverage Rate of Work Safety Liability Insurance
% 41
Personnel R&D and Innovation
Development and Training Number of R&D employees Person 71
Total number of trainings Total number of trainings No. 234 R&D staff ratio % 4.6
Research and development
Total investment in employee training Ten thousand RMB 295 R&D investment Ten thousand RMB 1956.51
Employee training investment per million RMB Ten thousand RMB 0.0262 R&D investment as a percentage of revenue % 0.17
Employee training investment
Average employee training and development Community Charity
Ten thousand RMB/person 0.19
investment
Donations outside the community RMB 362,048
Employee Training Coverage Total coverage % 100
Investment in community activities for public
RMB 46,756
Male Person 1,183 good
Number of trainees by gender
Female Person 349 Total investment in public welfare RMB 408,804
Male % 77 Public welfare Community public welfare investment per
Percentage of training by gender RMB/million in RMB 36.31
million Chinese Yuan
Female % 23
Employee volunteer hours Hour 3,797
Top-level management Person 55
Employee volunteer hours per employee Hour 2.48
Number of trainees by rank Mid-level management Person 120
Social contribution per share RMB 1.50
Rank & file Person 1,357
Top-level management % 3
Percentage of training by rank Mid-level management % 8
Rank & file % 89
Average number of hours of Average number of hours of training per
Hour 51.15
training per employee employee
Reporting Evaluation and Suggestions 82 83
Reporting Evaluation and
Suggestions
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