Contents Green Empowerment Collaborative Compliance as
Setting a Benchmark for Co-creation the Helmsman
Low-Carbon Shipping Enhancing Safety and Solidifying the Foundation for
Service Levels Sustainable Development
Report Preparation Instructions 01
Message from the Chairman and General 03
Manager Climate Change Adaptation and Mitigation 37 Innovation-Driven Development and Intellectual 53 Corporate Governance 81
About Xingtong Shipping 05 Environmental Management and Ecological 42 Property Transparent Disclosure 84
Protection Product and Service Safety and Quality 54
ESG Governance 19 Risk Control 86
Pollutant Emissions and Waste Management 45 Data Security and Customer Privacy Protection 56
Business Ethics 88
Special Feature: Intelligent Voyage 25
Circular Economy and Resource Utilization 48 Supply Chain Security 60
Across Blue Seas, Green Xingtong Party-Building Leadership 91
Employment and Employee Rights 62
Employee Training and Development 69
Occupational Health and Safety 71
Fostering Community Co-development 76
Collaborating for Industry Progress 78
ESG Data Table and Notes 93
Index Table 99
Terms and Definitions 101
Xingtong Shipping Co., Ltd.
Report Preparation Instructions
This is the fourth Environmental, Social, and Governance (ESG) Report (the "ESG Report") issued by Xingtong Shipping Co., Ltd. In Preparation This report has been prepared with reference to the Guidelines No. 14 of Shanghai Stock Exchange for
the principles of objectivity, standardization, transparency, and comprehensiveness, this report provides a detailed disclosure of Basis Self-Regulation of Listed Companies—Sustainability Report (Trial) (the "SSE Guidelines "), and the GRI Sus-
the Company's practices and performance in environmental, social, and governance matters for the year 2025. tainability Reporting Standards (GRI Standards) . It also incorporates the Guide No.4 for Self-Regulatory
Supervision on Listed Companies of the SSE—Compilation of Sustainable Development Reports , the Guide-
lines for Preparing Corporate Social Responsibility Reports in China (CASS-ESG 6.0), the United Nations 2030
Sustainable Development Goals (SDGs), the Sustainability Accounting Standards Board (SASB) standards,
Reporting This report covers the period from January 1, 2025, to December 31, 2025 (the "Reporting Period"). To enhance
and the A Practical Guide to Sustainability Work of Listed Companies issued by China Association for Public
Period the comparability and foresight, certain sections may appropriately refer to previous years or contain for-
Companies (CAPCO).
ward-looking statements. This report is released on an annual basis, consistent with the financial year.
Data Sources Data sources used in this report include public data from government departments, the Company's actual
operational data, annual financial data, internal statistical reports, third-party questionnaire surveys, and
third-party evaluations or interviews. The financial data in this report is expressed in Renminbi (RMB). In the
Terminology For ease of expression and readability, in this report: event of any discrepancies between this report and the financial statements, the financial statements shall
prevail.
Full Name Abbreviation
Xingtong Shipping Co., Ltd. Xingtong Shipping, Xingtong, the Company, We
XT-IMC Shipping Co., Ltd. XT-IMC
Confirmation This report was approved by the Company's Board of Directors on April 21, 2026, and was subsequently re-
Shanghai Xingtong Lianfa Shipping Co., Ltd. Xingtong Lianfa and Approval leased in conjunction with the Annual Report. The Board of Directors pledges to exercise oversight over the
contents of this report, ensuring its absence of any false records or misleading statements, and assuming
Quanzhou Xingtong Fuxing Crew Management Co., Ltd. Fuxing Crew Management
responsibility for its truthfulness, accuracy, and completeness.
Shanghai Xingtong Fokai Ship Management Co., Ltd. Fokai Ship Management This report is published in bilingual versions, Chinese and English. The English version is based on the Chi-
nese version. In the event of any discrepancy between the two versions, the Chinese version shall prevail.
HK XINGYAO SHIPPING CO., LIMITED HK Xingyao Shipping
Reporting This report discloses information on the economic, environmental, social, and governance responsibilities of Xing- Access to This report is available for review and download on the official websites of the Company (https://www.xt-
Boundary tong Shipping Co., Ltd. and its subsidiaries. Relevant case studies are sourced from the Company and its affiliates. This Report shipping.com) and the Shanghai Stock Exchange (http://www.sse.com.cn).
Xingtong Shipping Co., Ltd.
Driven by an Advanced Fleet, Consolidating the Founda- Guided by Digital Intelligence and ESG, Cultivating New
Message from the Chairman and General Manager tion for Sustainable Development Productive Forces
In 2025, the Company continued to advance the upgrade of its fleet In 2025, in terms of technology and innovation, the Company
towards being high-end, green, and intelligent. The world-leading continued to advance the integrated application of "Artificial Intelli-
"XT SEA LION" and "XT SEAL," were successively put into operation. was successfully launched, integrating the DeepSeek API to drive
XT-IMC's 13,000 DWT high-end stainless steel chemical tankers, visualized fleet operations, intelligent maritime risk management,
With the deep blue sea ahead and a clear course in our hearts, we forge a solid foun-
"ShanTong", was successfully delivered, and the 13,000 DWT stain- efficient procurement collaboration, and the valorization of data
dation. less steel chemical tanker "XT FORTUNE" of HK Xingyao Shipping assets, continuously enhancing operational efficiency and man-
has been successfully commissioned. The gradual replacement agement transparency. The Company is also gradually upgrading
of older vessels with new ones progressed steadily. As of the end its digital and intelligent capabilities from a single-tool application
With the trade winds as our sails and determined action as our oars, we voyage to- of the Reporting Period, the Company had 40 vessels in operation, to a foundational capacity supporting business decision-making,
wards a distant horizon. with a total carrying capacity of 501,300 DWT; and 9 vessels under governance optimization, and risk management. The Company
construction, with a total carrying capacity of 170,200 DWT. The av- signed a cooperation agreement with Shanghai Maritime University
erage age of the company's chemical tanker fleet is only about 7.26 to jointly explore the implementation of intelligent applications in
years, with stainless steel vessels accounting for 70.59% of the fleet. the industry and promote the digital and intelligent transformation
Since its inception, Xingtong Shipping has been dedicated to the shipping of bulk liquid dangerous cargoes, striving to The proportion of high-end stainless steel vessels ranks among the of shipping services.
become a world-class, domestically leading integrated service provider for the chemical supply chain. In 2025, against top in the industry. The overall fleet continues to become younger
the complex backdrop of geopolitical tensions, industry cyclical fluctuations, and technological transformation, Xing- in age, and operational efficiency is steadily improving, providing a Upgrading Organization, Capital, and Ecosystem, Accumu-
tong Shipping adhered to the business policy of "seeking progress while maintaining stability, and using progress to solid capacity support for global business expansion, high-end cus- lating Momentum for Long-Term Development
promote stability." We built the certainty to navigate through cycles amidst changes. We continued to optimize our tomer service, and green and compliant operations.
In terms of capital and organizational development, the Company
business layout, expanded our high-end and green fleet, and enhanced operational efficiency. Driven by sustainability completed an A-share private placement of RMB 643 million, in-
as an internal engine, we promoted the Company's high-quality and sustainable development, built a summit of value troducing multiple institutional investors and optimizing its share-
Based on Intrinsic Safety, Strengthening the Lifeline of
for our customers, broadened the boundaries of value for our investors, held up the blue sky of dreams for our employ- holder structure. The inauguration of Fukai Ship Management and
Global Operations
ees, and shouldered our responsibilities to society with courage. Fuxing Crew Management established an international, standard-
Safety is Xingtong Shipping's core, long-term, and non-negotiable
Guided by the national policy of building China into a "Maritime Power" and a "Transportation Power," the Company ized ship management system and a full-cycle talent management
foundation value. It is also a competitive advantage that the Com-
system, achieving a deep integration of "vessel assets + human
seized the opportunities of the times. Following the "1+2+1" development strategy, we focused on expanding and pany has long been cultivating. In 2025, the Company achieved
capital" and further enhancing global operational capabilities and
strengthening the transportation business of domestic coastal liquid dangerous cargoes as our core, advanced clean safe and stable operations throughout the year, and was awarded
international competitiveness. In ecosystem development, the
energy transport and deepened international shipping operations as our two wings, and built a digital platform to fuel the "Safety & Integrity Company" and its valid endorsement by
Company continued to deepen its partnerships with strategic allies
our growth. These efforts continuously solidified our leadership in domestic chemical transportation, comprehensively the Maritime Safety Administration of the Ministry of Transport
such as C&D Inc. and Xiamen Xiangyu Co., Ltd., upgrading from
expanded our presence into the international chemical transportation arena, and strengthened our main business of for eight consecutive years. 4 vessels and 11 captains were also
business collaboration to capital-level synergy, thereby building a
hazardous chemicals transportation. honored with the "Safe & Integrity" honors. The Company again
cooperative ecosystem characterized by "resource sharing, comple-
secured the highest rating nationwide for new capacity, fully
mentary advantages, and long-term win-win outcomes."
reflecting the high recognition of Xingtong Shipping's safety man-
agement capabilities by the industry's competent authorities. The
Company established June 9 as the annual "Safety Day" and re- Looking ahead, Xingtong Shipping will focus on international de-
leased the documentary Safety in Action by Everyone , transform- velopment and the enhancement of green shipping capabilities.
ing safety objectives into a conscious consensus and unwavering We will continue to advance the upgrade of our fleet towards
action for all Xingtong people. Building on this foundation, the being high-end, green, and intelligent, strengthen occupational
Company continuously improved its internal control and audit health and safety management, promote the digital and intelligent
systems, strengthened the compliance baseline and risk resilience transformation of shipping services, and continuously optimize
for both domestic and international operations, providing a more our corporate governance and compliance systems. The Company
robust safety barrier for global operations. will uphold its "green, safe, innovative, and efficient development
philosophy", seize market opportunities, enhance core compet-
Positioned in the Global Market, Building a Multi-dimen- itiveness, and strive to achieve the multiple values of economic
sional and Collaborative Shipping System benefits, social responsibility, and environmental sustainability,
In 2025, Xingtong Shipping positioned itself in the global market, steadily advancing towards becoming a globally influential chemi-
continuously expanding the boundaries of its clientele. The Com- cal shipping enterprise.
pany served clients across 47 countries and regions, calling at 214
We firmly believe that through stable operations, strategic position-
ports, and continuously optimized and expanded its route network
ing, and innovation-driven growth, Xingtong Shipping is poised to
to South America and pan-oceanic regions, achieving a steady en-
write a brilliant new chapter on the international shipping stage.
hancement of its global transportation capacity. Xingtong Shipping
is steadily transitioning from the exploratory phase of "going inter-
national" to a new stage of "possessing global influence".
Qilong Chen
In the domestic market, we successfully onboarded international
chemical industry leaders such as ExxonMobil and BASF, further Chairman and General Manager of
optimizing our high-end client structure. Xingtong Shipping Co., Ltd.
Xingtong Shipping Co., Ltd.
About Xingtong Shipping
Company Overview In 2025
Company Profile
Founded in December 1997 with a registered capital of RMB 325 million, Xingtong Shipping Co., Ltd. is primarily engaged in domestic and
international waterborne transportation of bulk liquid dangerous cargoes. It is a leading enterprise in the domestic coastal bulk liquid
chemical shipping industry in China. The Company was listed on the Main Board of the Shanghai Stock Exchange on March 24, 2022, with
the stock code 603209. The Company serves as a Vice Director Unit of the Chemical Transportation Committee of the China Shipowners' the net profit attributable to shareholders of
Association, a Vice President Unit of the Fujian Shipowners' Association, and the President Unit of the Quanzhou Shipowners' Associa- the operating revenue reached the listed company reached
tion. It is recognized as one of the three leading shipping enterprises in Fujian Province.
Guided by the "1+2+1" strategic development plan, with expanding and strengthening the transportation business of domestic coastal
liquid dangerous cargoes as the core, advancing clean energy transport and deepen international shipping as the two wings, and building
a digital platform as an enabler, the Company is committed to becoming a "world-class, domestically leading integrated service provider
a year-on-year increase of
for the chemical supply chain".
Embracing the shipping industry's new trend towards green, low-carbon, and intelligent development, the Company seizes market op-
portunities, appropriately expands its fleet size, and continuously enhances its safety management level to achieve high-quality and sta-
ble development.In recent years, amid a complex operating environment, the Company has demonstrated robust operating resilience.
Xingtong Shipping Co., Ltd.
Main Business
After years of development, the Company
In the international transportation segment,
has evolved into a leading enterprise in the
the Company's vessels mainly operate
domestic coastal bulk liquid chemical ship-
across Northeast Asia, Southeast Asia, the
ping industry, holding a leading position in its
Middle East, the Mediterranean Sea, North-
market segment.As of the end of the Report- Liaoning
west Europe, the Americas, and the Indian
ing Period, the Company owned 40 vessels Beijing
Ocean. The main goods include ethylene gly-
of bulk liquid dangerous cargoes, with a total
Tianjin
Hebei
col (MEG), phenol, diethylene glycol (DEG),
capacity of 501,300 DWT. This includes 30 do- Northern China
styrene, palm oil, and base oil. The main Shandong
mestic trading vessels, with a total capacity
customers include PETROBRAS, SABIC, RE-
of 332,500 DWT, and 10 international trading Jiang
su
LIANCE, RAFFLES, ICOF, ENOC, PETRONAS,
vessels with a total capacity of 168,800 DWT.
and SIPCHEM.
We have 9 vessels under construction, with a
Shanghai
capacity of 170,200 DWT. Zhejiang
Eastern China
In the domestic transportation segment, the
Fujian
Company's transportation routes cover the
coastal areas of mainland China, the middle Guangxi Guangdong
Taiwan
and lower reaches of the Yangtze River and Macau
HongKong
Pearl River, and the Taiwan Strait. This forms a
transportation network system that can serv- Domestic Routes Southern China
Hainan
ing major domestic chemical industry bases
such as Bohai Bay, the Yangtze River Delta,
the Pearl River Delta, Beibu Gulf, and Hainan.
The wide range of our transportation services
mainly includes petrochemical products such
as paraxylene (PX), ethylene glycol (MEG),
pure benzene, phenol, polyether polyol, liquid
caustic soda, methanol, jet fuel, butadiene,
and butane. The primary clientele comprises
petrochemical giants such as Sinopec, CNPC,
CNOOC, CNAF, Rongsheng Petrochemical,
Shenghong Refining & Chemical, CNOOC and
Shell Petrochemicals, and Fujian Refining &
Petrochemical. The Company has won the
titles of "Best Logistics Service Provider in
Safety and Integrity," "Excellent Supplier," and
"Outstanding Service Provider" from down-
stream customers.
International Routes
Xingtong Shipping Co., Ltd.
Fleet Capacity Corporate Culture
The Company continues to build a fleet of vessels that are "larger, younger, higher-end, greener, and more intelligent" ,constantly
increasing capacity to meet the diverse needs of customers with exceptional service.
Number of Vessels in Operation and Capacity in 2025
• To maximize the return to
In Operation Under Construction
our customers, investors,
Chemical Tankers (Units) 34 9 • A World-Class, Domestical- employees, and society with
Number of ly Leading Integrated Ser- safer, more efficient, and
• People-Oriented
Vessels Product Tankers (Units) vice Provider for Chemical more trustworthy services
•
Supply Chain Innovation-Oriented
LPG Carriers (Units) • Value-Creation
•
First-Class Fleet, First-Class
• Committed to Excellence
Service, First-Class Man-
agement, First-Class Team,
Chemical Tankers (10,000 DWT) and First-Class Culture
orate Missio
C o rp
Fleet
n
io n Co
Capacity Product Tankers (10,000 DWT) 5.87 0
s rp
Vi o
LPG Carriers (10,000 DWT) 1.15 0
e
ra
at
or
te
rp
Va
Co
lues
Freight Volume
Chemical Product LPG
Freight Volume (10,000 tons)/Year
Xingtong Shipping Co., Ltd.
Top 10 Events in 2025
Sailing Green Sailing Far
Achievements in Building a Green, Global Routes and Customer
High-End Fleet Delivered Structure Upgraded in Tandem
• From the maiden voyage of the 13,000 DWT high-end In 2025, Xingtong Shipping's global capabilities
chemical tanker "XT FORTUNE" on May 31, to the nam- were further enhanced. Throughout the year, the
ing and delivery ceremony of China's first 25,900 DWT Company served clients across 47 countries and
methanol dual-fuel stainless steel chemical tanker "XT regions and called at 214 ports globally.
SEA LION" on September 26, followed by the successful
• In the domestic market, 18 new customers were
delivery of its sister ship "XT SEAL" on December 9, and
added, successfully onboarding international
the successive commissioning of XT-IMC's 13,000 DWT
chemical giants like ExxonMobil and BASF, continu-
stainless steel chemical tankers "ShanTong".
ously optimizing the high-end client structure.
• Xingtong Shipping added a total of four vessels in 2025,
• In the international market, Xingtong Shipping's
with a combined capacity of 78,300 DWT.
route network accelerated its shift from "regional"
to "global," with new routes opened to Chile and
Peru in South America, further refining the pan-oce-
anic route system.
Advancing Steadily Guarding Safety
向 " 安 " 而守
Capital Empowerment Supports the Safety Culture Becomes the
安全文化成为最硬核竞争力
Implementation of Long-Term Strategy Core Competitiveness
In June 2025, Xingtong Shipping completed its two-year In 2025, leveraging the "Work Safety Month" and the
A-share private placement project, raising RMB 643 million inaugural Xingtong Shipping Safety Day, the Compa-
and introducing several key strategic investment institutions. ny established a safety culture system featuring ship-
shore collaboration and full participation.
• The funds raised will continue to be used for fleet upgrades, "1+2+1"
international expansion, and core capability building, provid- Development Strategy • Concurrently, June 9 was designated as the annual
ing solid support for the comprehensive advancement of the Work Safety Day. The documentary Safety in Action
"1+2+1" development strategy and accelerating the journey by Everyone was released, making "safety is the
towards becoming a "world-class, domestically leading inte- lifeline" a consensus, a habit, and an instinct.
grated service provider for chemical supply chain".
Advancing Intellectually Building Strength
Digital Intelligence Becomes a Dual Drivers Enhance the
Foundational Capability Shipping Service Ecosystem
and intelligent transformation, moving from "tool applica- Fuxing Crew Management were jointly inaugurated,
tion" to "system capability". marking a crucial step in Xingtong Shipping's devel-
• In February, the "AI-XingZai" shipping model completed in- opment of its shipping service system.
tegration testing. In April, various applications were officially • Fokai Ship Management aims to build an interna-
launched. In December, Xingtong Shipping obtained another tional, standardized ship management system. Fux-
data intellectual property registration certificate. By continuously ing Crew Management aims to establish a full-cycle
advancing "AI + Shipping," Xingtong Shipping built an integrated talent management system. The deep integration
ship-shore intelligent navigation safety management platform, of "vessel assets + human capital" is a significant
achieving visualized operations, intelligent risk management, indicator of Xingtong Shipping's transition from
efficient procurement collaboration, and data assetization. "scale expansion" to "capability-driven" growth.
Xingtong Shipping Co., Ltd.
Rooted in Talent Driving for Good
Industry-University-Research Integration ESG Practices and Social Responsibility
Strengthens the Talent Foundation Continuously Pursued
In 2025, Xingtong Shipping continued to advance its strat- In 2025, Xingtong Shipping continued to deepen its
egy of "Developing Enterprise by Talent Management": efforts in the ESG field, interpreting responsibility
through action rather than words.
• In March, a cooperation agreement was signed with Shang-
hai Maritime University. • On July 23, Xingtong Shipping donated 10 sets of hemo-
dialysis equipment to the General Hospital of Quangang
• In December, a practice base was established with the
District, supporting the enhancement of local medical
MPAcc Education Center of Huaqiao University.
capabilities through concrete action.
• Through deep industry-university-research integration,
• At the end of the year, Xingtong Shipping was awarded
Xingtong Shipping is systematically building a talent pool of
the "2025 ESG Value Communication Award for Listed
versatile professionals to support its international develop-
Companies" in recognition of its ESG system develop-
ment.
ment, information disclosure quality, and effectiveness
in value communication.
Advancing with Honors Collaborative Win-Win
Brand Strength and Industry In- Strategic Cooperation Reaches a
fluence Continuously Enhanced Deeper Level
In 2025, Xingtong Shipping received high industry recogni- In 2025, the cooperation between Xingtong Shipping,
tion in multiple dimensions including safety, service, and C&D Inc., and Xiamen Xiangyu Co., Ltd. was upgraded
governance: from business collaboration to capital synergy:
• "Golden Pot Award" Safety Management Enterprise in Chi- • On January 8, Shanghai XT-Lianfa Shipping Co., Ltd. was
na's Chemical Logistics Industry. officially inaugurated.
• Zhenghe Navigation Awards "Best Shipping Company" . • On December 18, HK Xingyao Shipping completed a capital
increase and share expansion.
• CNPC's 2025 Excellent Logistics Cooperation Partner.
• Through the deep integration of "shipowner expertise +
• Strategic Partner of Rongsheng Holding Group.
supply chain resource advantages," Xingtong is building a
• President Chen Qilong was named "Outstanding Contribu- long-term, stable, and sustainable cooperative ecosystem.
tor to Fujian's Non-Public Economy".
Xingtong Shipping Co., Ltd.
Key Honors
National Level Partners
"Safety & Integrity Company", AAA Class Credit Enterprise Zhenghe Navigation Awards
CNPC's 2025 Excellent Logistics 2024 Strategic Strategic Clients
"Safety & Integrity Ship", "Safety China Enterprise Confederation, "2024 Best Shipping Company"
Cooperation Partner Cooperation Service Provider China Minsheng Bank Corp., Ltd.
& Integrity Captain" in 2025 China Enterprise Directors Association Organizing Committee of the Zhenghe
Maritime Safety Administration, Navigation Awards Selection Activity PetroChina South China Chemi- RONGSHNEG
Ministry of Transport cals Marketing Company HOLDING GROUP
"2024 Top Ten Ships" Finalist Nom- "Golden Pot Award" Safety Management Outstanding Contribution Award for Port Member of the
ination for "XINGTONG 739" Enterprise in China's Chemical Logistics Industry News and Publicity "Silk Road Maritime" Association
Organizing Committee of the Zhenghe China Federation of Logistics & Purchasing Quanzhou Port Association Fujian Silk Road Maritime Operation Co., Ltd.
Navigation Awards Selection Activity
Qualification Certifications
Municipal Level District Level
prises with Tax Payments 2025 Top 20 Service Private Enterprises in Quanzhou – Rank 13 (Exceeding RMB 100 Million)
(Exceeding RMB 100 Million) Quanzhou Investment Promotion CPC Quangang District Commit-
Quanzhou Municipal Office, Quanzhou Federation of tee, Quangang District People's ISO 14001 Environmental ISO 9001 Quality ISO 45001 Occupational Certificate of Work Safety
People's Government Industry and Commerce Government Management System Management System Health and Safety Management Standardization for
Certification Certification System Certification Transportation Enterprises
Xingtong Shipping Co., Ltd.
Key Performance Highlights
Economic and Operational Performance Social and Employee Performance
As of the end of the Reporting With a total Making a year-on-year Total Number of Employees
Period,There were capacity of increase of (163 Shore-based + 659 Crew) Employee Training Coverage Rate Shore-based Employee Satisfaction
Countries and Regions Covered Number of Ports New Customers in the
by Served Customers Called Globally Domestic Market Corporate Customer Satisfaction Total Social Welfare Investment
Total Employee Training Hours
Green Environmental Performance 68,541.33 Hours
Methanol Dual-Fuel Stainless Steel Foreign Trade Vessels with
Chemical Tankers Delivered CII Rating of C or Above SIRE / CDI Inspection Pass Rate
Total GHG Emissions (Scope 1 + Scope 2) Governance and Compliance Performance
Achieved Achieved
CO2 Emission per Unit of Transport
Work ≤ 310 kg/10,000 ton-miles
Fuel Oil Consumption ≤ 99
kg/10,000 ton-miles
A-share private placement of
Replied to Investor's Questions
Response Rate to Investor
Inquiries
in SSE E-Interaction Platform
Total Volume of Waste Percentage of Waste
Recycled and Reused Recycled and Reused Compliant Waste Disposal Rate
Cumulative Number of Granted Patents
Cumulative Number of
Software Copyrights
Data Security Incidents and
Customer Privacy Breaches
Bribery, Embezzlement, Signing Rate of Integrity Agreements
Safety Management Performance Significant Illegal or Regulatory Violations or Corruption with Core Suppliers
Major Safety Incidents Work-related Fatalities
"Safe & Integrity Company" awarded
by the Maritime Safety Administration
of the Ministry of Transport for
"Safety & Integrity
"Safety & Integrity Ships" Captains" PSC / FSC Detentions
Ship-shore Joint Drills
Class I Certificate
Standardized Waterway Trans-
port of Dangerous Goods 4
Xingtong Shipping Co., Ltd.
ESG Governance
ESG Development Strategy
Study
Case
Conducting Internal and External ESG Training
ESG Governance System The Company continuously strengthens its ESG professional capacity building and internal collaboration mechanisms, promot-
To align with the Company's strategic direction, promote sustainable development, ensure the scientific basisand rationality of de- ing a systematic and standardized approach to sustainability management and information disclosure. The Company actively
velopment plans and strategic decisions, and comprehensively enhance sustainable development capabilities, Xingtong Shipping participates in external learning and exchanges. In February 2025, it attended the special training on "ESG Sustainability Disclo-
has formulated and issuedthe ESG Management Policy . This system establishes a sustainable development governance framework sure and Hong Kong Registration" organized by the Quanzhou Administration for Market Regulation, gaining timely insights into
covering three tiers-"Decision-Making, Management, and Execution"-to provide unified leadership, overall decision-making, and the latest regulatory and market requirements and enhancing its awareness of disclosure compliance and understanding of rel-
specific execution of ESG efforts. evant rules. Additionally, the Company organized a themed training on "ESG and Sustainability Leadership" for senior manage-
ment and key business personnel, covering ESG strategic management, risk identification and response, international standard
frameworks, and practical implementation. Through interactive lectures and case discussions, the training strengthened man-
agement's practical capabilities in corporate sustainability, risk management, and strategic decision-making.
Board of Directors The Company simultaneously strengthens internal review and
advance planning. In June 2025, an ESG Report review meet-
As the highest leadership and decision-making body for ESG matters, it is responsible
Decision- ing was held to systematically evaluate the data definitions,
for determining the Company's sustainability policies, strategies, and objectives; su-
Making preparation process, and disclosure priorities from the previous
pervising the assessment of sustainability-related impacts, risks, and opportunities,
Level reporting cycle, identifying areas for improvement and clarifying
as well as the implementation of related work; making decisions on significant ESG
responsibilities. In December 2025, an ESG Report kick-off meet-
issues; and approving the Company's annual ESG Report.
ing was convened to prearrange the annual preparation plan
and key milestones, facilitating efficient coordination across
departments, data management, and content planning. These
ESG Working Group efforts lay the groundwork for continuously enhancing the ESG
governance level and disclosure quality. ESG Report Kick-off Meeting
Led by the General Manager, the Group comprises other senior executives, heads of
departments and subsidiaries, with the Securities Department serving as the coordi-
nating department.
Management The Working Group is responsible for researching ESG trends and regulatory develop-
ESG Honors and Achievements
Level ments; formulating ESG visions and goals aligned with the Company's strategy and
providing decision-making support to the Board; identifying significant ESG risks and Xingtong Shipping consistently advances its ESG management and practices, with continuous improvements in relevant systems
reporting them to the Board with improvement recommendations; developing ESG and actions, leading to an upward trend in overall performance year by year. During the Reporting Period, the Company's ESG ef-
guidelines and plans, refining relevant systems, and evaluating implementation to sug- forts were recognized by external organizations and earned related honors, reflecting the steady strengthening of its sustainable
gest optimizations; and compiling the annual ESG Report and facilitating ESG-related development capabilities.
communications.
Functional Departments and Subsidiaries
As the implementing entities, they are responsible for identifying and assessing the
Execution
impacts, risks, and opportunities related to ESG topics, and developing response
Level
plans; managing the collection, review, and reporting of ESG information; and engag-
ing with relevant stakeholders to address their ESG needs.
"A" Rating from Wind ESG 2025 ESG Value Communication Award for Listed Companies
ESG Governance Structure
Xingtong Shipping Co., Ltd.
Sustainable Development Concepts and Goals
The Company's social responsibility policy is to conduct business based on the fundamental principles of responsibility, ethics, and sustain-
ability, adhering to a long-term value orientation and continuously promoting high-quality, sustainable development. Focusing on the UN Fostering Community Co-development
Sustainable Development Goals (SDGs), the Company systematically advances its ESG practices to foster synergistic improvement in both
The Company actively engages in public charity initiatives and supports education development and rural revitalization. Through con-
business and social value.
crete actions like agricultural support procurement, it fulfills its corporate social responsibility, helping to reduce poverty and inequality
and contributing to building inclusive and sustainable social development.
Collaborating for Industry Progress
The Company deepens the strategic cooperation with upstream and downstream enterprises in the supply chain, actively Fostering Community Co-development
participates in industry forums and school-enterprise exchange activities, and establishes supply chain partnerships, to joint-
The Company organizes agricultural support activities and actively contributes to the cause of rural revitalization.
ly promote the sustainable development of the shipping industry and drive win-win cooperation with a more open attitude.
Occupational Health and Safety
Risk Management
The Company pays attention to the physical and mental health of crew members, strengthens occupa-
The Company builds an efficient governance structure, strengthens compliance and risk management, pro- tional health protection, and regularly conducts occupational health surveillance and medical checkups.
motes internal communication and cooperation with stakeholders, standardizes business practices, and estab-
lishes a peaceful, just, and strong business environment. The Company organizes professional lectures and training, offers psychological counseling services.and
fully safeguards the health and well-being of crew members.
The Company also implements shore-based security management for onshore personnel to strictly con-
trol and prevent health and safety risks.
Environmental Management and Ecological Protection
Circular Economy and Resource Utilization
Employee Training and Development
The Company actively promotes the use of environmentally friendly packaging materials, imple-
ments green office practices, and conducts environmental activities such as tree planting to contrib- The Company attaches importance to talent cultivation, solidly offers professional ability and
ute to the protection of terrestrial ecosystems and biodiversity. knowledge training, deepens school-enterprise cooperation, and co-cultivates shipping tal-
ent, constantly improves the professional skills and knowledge baseof the staff, and creates a
high-quality talent team.
Environmental Management and Ecological Protection
The Company takes measures such as route optimization, enhanced ballast water management, and Employment and Employee Rights
noise reduction during navigation to effectively protect the marine ecosystems, maintain underwa-
The Company actively advocates for gender equality, implements a gender-neutral recruitment
ter biodiversity, and actively contribute to marine protection efforts.
policy, fully safeguards the rights and interests of female employees, organizes themed events
such as Women's Day, and creates an inclusive and equitable working environment.
Green and Low-Carbon Shipping
Climate Change Adaptation and Mitigation Circular Economy and Resource Utilization
The Company adopts advanced energy-saving technologies and equipment to optimize ship design, im- The Company strictly regulates the compliant treatment of sewage from ships, ensures the safety of fresh
prove energy efficiency, and reduce greenhouse gas emissions. drinking water onboard, actively improves sanitary facilities, and provides a healthy and safe living envi-
The Company actively tracks international climate policy trends, participates in relevant training and ronment for the crew.
seminars, ensures that business operations comply with international emission reduction requirements.
Green and Low-Carbon Shipping
Sustainable Supply Chain The Company actively promotes the construction of low-carbon ships such as methanol dual-fuel vesselswhile exploring
The Company implements a green procurement policy, prioritizes the selection of environmentally friendly the application of green energy, and is committed to promoting the transition of the shipping industry to economic and
and efficient materials and services, and drives the upstream and downstream of the supply chain to jointly applicable clean energy.
practice responsible consumption and production concepts.
Employee Training and Development
Fostering Community Co-development The Company provides competitive compensation and diversified career development paths, strengthens employee train-
ing and promotion mechanisms, and fully safeguards employee rights and benefits.
The company actively organizes volunteer harvesting assistance, medical equipment donations, and other public welfare
activities to improve local medical standards and rural economic vitality, contributing to the sustainable development of
communities. Digital and Intelligent Shipping Transformation
Innovation-Driven Development and Intellectual Property
Employment and Employee Rights
The Company has actively invested in R&D to promote the digital and intelligent transformation of ships, build intelligent shipping plat-
Employee Training and Development
forms and enhance shipping efficiency and safety.
The Company provides equal career development opportunities and implements a non-geographical and gender-neutral recruitment and The Company strengthens strategic cooperation with industry partners, jointly promotes technological innovation and industrial up-
employment policy to ensure that every employee enjoys a fair working environment and promotion opportunities. grading, facilitates upstream and downstream coordination in the supply chain, and support sustainable economic development.
Xingtong Shipping Co., Ltd.
Stakeholder Communication Material Topic Analysis
The Company is committed to enhancing its level of responsible corporate governance and responsible competitiveness. Focusing With reference to the requirements of the SSE Guidelines and other relevant standards, and in combination with the SASB industry
on "shaping the Xingtong brand and delivering Xingtong value," it actively engages in communication with stakeholders, including standard topics, the topics of the industry in the ESG rating in which the Company is operating, and the business realities of the
government, regulatory bodies, shareholders, employees, and customers. This enhances the transparency of information disclo- Company, we comprehensively identify and evaluate material topics that significantly impact its sustainable development and are
sure, optimizes mechanisms for responding to stakeholder needs, and promotes the synergistic sustainable development of the of close concern to its stakeholders through questionnaire surveys of stakeholders, expert analysis and other means.
Company and society.
Consideringnational policies, industry trends, and company strategies, comprehen-
Stakeholders Main Topics of Concern Company Response Analyzing the Company's Activi-
sively analyzingthe external environment and internal business activities, identify-
ties and Business Relationships
• Tax compliance • Standardization of • Strengthen com- • Enhance environmental man- ingthe main stakeholders.
• Compliant Operations Corporate Govern- munication and agement
Usingthe 21 topics set forth in the SSE Guidelines as the basis, and combining SASB
• Climate Change Adapta-
ance reporting with gov- • Implement energy conserva- Establishing a List of
industry standard topics, ESG rating focus areas, industry characteristics, and ex-
Govern-
tion and Mitigation • Waste Manage- ernment/regulatory tion and emission reduction Material Topics
ment / agencies pert recommendations to form a list of material topics.
• Environmental Compli-
ment • Protect marine ecology
Regulatory
• • Publish periodic re-
Agencies ance Management Pollutant Emis- • Develop green vessels Conductinga stakeholder questionnaire to understand the views of stakeholders,
sions ports and corporate Conducting a Stakeholder
• ESG Governance ESG reports Survey
in conjunction with the assessment requirements related to impact materiality and
• Protection of Ma- financial materiality.
rine Ecology • Fulfill tax obligations
Based on the results of the stakeholder survey, and in conjunction with our internal
• Anti-Commercial Bribery • Standardization of • Carry out informa- • Publish periodic reports and Assessing and Confirming
leadership assessment and expert opinion, we assessingthe materiality of topics in
and Anti-Corruption Corporate Govern- tion disclosure the corporate ESG Report the Materiality of Topics
Sharehold- terms of financial materiality and impact materiality .
• Risk Management and ance • Convene General
ers
Internal Control • Development Meeting of Share- Based on the assessment of the materiality of the topics, a matrix of material topics
Strategy holders Reporting on Topics
was formed.
• Protection of Employees' • Navigation Safety • Convene Staff repre- • Provide competitive compen-
Rights and Interests Management sentative assemblies sation and benefits Material Topic Analysis Process
• Occupational Health and and other communi- • Conduct diversified employee
Employees Safety cation meetings training Matrix of Topics of Double Materiality for Xingtong Shipping
• Safeguard employ- • Create a "Home for Seafarers"
ees' occupational
health and safety Occupational
Impact Materiality on Economy, Society, and Environment
Health and Safety Navigation Safety
Communi- • Social Contribution • Rural Revitalization • Donate to education • Participate in community Management
ties development funds public welfare activities Pollutant Emissions Standardization
Product and Service Safety of Corporate
• • • • Energy Utilization Environmental Com- and Quality Governance
Navigation Safety Man- Product and Enhance capacity Provide green and low-carbon pliance Management ESG Governance
agement Service Safety and for safe and efficient transportation services Employee Training and Development
Customers Protection of Employees'
Quality transportation ser- Rights and Interests
Response to Climate Change
vices Waste Management
• Provide fair opportunities and conduct responsible
Suppliers • Sustainable Supply Chain Supply Chain Security
procurement Anti-Commercial Bribery Data Security and Customer
and Anti-Corruption
• Contribution to Industry • Waste Manage- • Support industry • Implement energy conserva-
Circular Economy
Anti-Unfair Competition
Privacy Protection
Development ment exchanges tion and emission reduction
Ecosystem and Biodiversity
• Energy Conservation and • Protection of Ma- • Participate in • Protect marine ecology Conservation
Social Contribution
Industry Or- Carbon Reduction rine Ecology industry forums and • Develop green vessels
ganizations conferences Rural Revitalization
• Enhance environ- Water Resource Utilization
mental manage-
ment
Financial Materiality
Media • Transparent Communication • Release reports and information in a timely manner
Xingtong Shipping Co., Ltd.
Special Intelligent Voyage Across Blue Seas,
Feature Green Xingtong
Consolidating the Foundation, Stabilizing the Leading Industry Position
In 2025, guided by China's "Belt and Road" Initiative and the 14th Five-Year Plan for Water Transport Development , the Company
adheres to its vision of becoming a "world-class, domestically leading integrated service provider for the chemical supply chain."
It steadily advances the "1+2+1" strategic development plan. While consolidating its leading position in the domestic hazardous
chemicals shipping industry, it actively opens new international routes. Through a sustainable business development model, the The shipping of liquid dangerous goods is inherently high-risk. Marine accidents during vessel transport can arise from collisions, reef strikes,
Company aims to become a renowned and internationally competitive shipping enterprise, solidly promoting the high-quality de- stranding, fires, or explosions, and safety incidents can also occur due to improper operational procedures such as tank cleaning or cargo
velopment of China's marine economy and contributing to the nation's goals of becoming a transportation and maritime power. loading/unloading. Xingtong Shipping adheres to the "One Core" strategy, strictly complying with domestic regulations such as the Law of
the People's Republic of China on Work Safety , as well as mandatory international conventions and standards, including the International
Convention for the Safety of Life at Sea (SOLAS), the International Convention for the Prevention of Pollution from Ships (MARPOL) , and the
International Maritime Dangerous Goods (IMDG) Code . This ensures that vessel design, equipment, suitability for cargo, and navigation con-
ditions all meet relevant domestic and international regulatory requirements. All vessels transporting dangerous goods are equipped with
valid safety certificates and equipped with smart shipping systems and other equipment to enhance dynamic navigation monitoring.
One Core Continuously expand and strengthen the
transportation of domestic liquid danger- The Company maintains a strong record in navigation safety, In 2022, the Company obtained the
cargo operations, and terminal inspections, "Class I Certificate for Standardized
ous cargoes, enhancing capabilities and
with no major safety incidents occurring. Waterway Transport of Dangerous Goods".
consolidating the leading position.
Honors from the Ministry of Transport
"Safe & Integrity Company" endorsement for 2025
New Field
Hazardous Chemicals Safety Management System
Two "New" Continuously explore and develop the field
of clean energy transportation. Xingtong Shipping has established the Safety and Quality Management System (SQMS) covering ship-shore collaboration and all business process-
es, continuously integrating elements such as safety, quality, and environment. Since implementing the Safety Management System (SMS) in 2002,
New Direction the Company has successively formulateda series of institutional documents, including the SafetyManagement Manual and the Guidelines for Ship
Actively develop the international shipping Operation and Management, clarifying safety and quality responsibilities for all personnel, operational procedures, and emergency response plans.
All dangerous goods vessels are maintained in good condition, hold statutory inspection certificates, and undergo rigorous annual surveys and au-
market to build a large-scale, influential,
dit procedures. The Company obtained its Document of Compliance (DOC) in May 2003 and has since passed four renewal audits.
and first-class shipping fleet.
The Company proactively benchmarks against industry best practices, introducing the TMSA system. It places high importance on the implementa-
tion of safety inspections such as FSC, PSC, SIRE, and CDI, continuously enhancing all employees' awareness of inspection readiness and strength-
ening preparation efforts. Deficiencies identified during inspections are promptly rectified as required, forming a closed-loop management
mechanism of "benchmarking - implementation - rectification - improvement," consistently elevating the standardization and refinement of the
Company's ship safety management.
One Platform Create a digital platform for the chemical
supply chain logistics and consistently pro- During the Reporting Period
mote digitalization and the application of There were There were There were There were
technological innovation.
with with with a with a
Xingtong Shipping's "1+2+1" Strategy
Xingtong Shipping Co., Ltd.
Hazardous Chemicals Safety Management Culture Diversified Exploration, Building a New Force in International Shipping
The Company places great importance on building a safety culture from top to bottom, deeply implementing the philosophy of
"safety first, prevention foremost." The Company has established communication platforms such as the "Home for Seafarers" and The introduction of the "Two" new aspects of the strategy is Xingtong Shipping's proactive action under the new development par-
publicized typical accident warnings, regulatory knowledge, and safety education through multiple channels. In June 2025, the adigm. In expanding its international shipping business, Xingtong Shipping increased vessel investment, optimized route layouts,
Company launched "Work Safety Month" and its inaugural "Safety Day" activities, including safety knowledge lectures, fire drills, and continuously opened new international shipping routes to serve countries along the Belt and Road. This not only promotes
and hazard identification, ensuring safety awareness permeates the daily work of all employees. trade with countries along the routes and drives synergistic regional economic development but also enhances Xingtong Shipping's
In hazardous chemicals shipping, high-caliber, versatile seafarers are the core guarantee for safe operations. The Company's domes- voice and influence in the international shipping market, helping to build a first-class, internationally competitive shipping fleet.
tic trade crew are 100% in-house. For foreign trade vessels, crew on flag-of-convenience ships are currently assigned by third-party Concurrently, in the field of clean energy transportation, the Company keeps pace with the global energy transition by actively posi-
ship management companies. However, with the establishment of Fokai Ship Management and Fuxing Crew Management by the tioning itself in LPG and other clean energy transport businesses, contributing to the security of national energy transportation.
end of 2025, the proportion of own crew will further increase. The Company regularly organizes training for crew members on the
properties of dangerous goods, operational procedures, and emergency knowledge, while also continuously enhancing their pro-
fessional skills through external training and simulation drills. Environmentally Friendly Design of New Vessels
Xingtong Shipping practices the development concept of "green, low-carbon, and intelligent" shipping. Actively responding to the
Hazardous Chemicals Safety Management Measures national "dual carbon" goals and global green shipping initiatives, the Company focuses on building a high-end, green fleet to re-
duce greenhouse gas emissions. All new vessels are designed in accordance with the China Classification Society's Rules for Green
Before voyage commencement, the Company systematically conducts route risk assessments, meteoro- Eco-Ships, incorporating energy-saving technologies such as hull lightweighting and optimized lines, as well as measures like main
logical and sea condition analyses, and cargo characteristic evaluations. It comprehensively verifies cargo engines using low-carbon fuel of methanol to achieve low-carbon emissions.
suitability and compliance of transport documents, ensuring documentation such as dangerous goods
Pre-Transport declarations and safety data sheets are complete and accurate. Key information, including cargo name, The Company continuously optimizes its fleet structure and accelerates the renewal and upgrade of green vessels. The six contract-
Preparation physicochemical properties, loading quantity, and emergency protection points, is precisely communicat- ed 25,900 DWT methanol dual-fuel stainless steel chemical tankers all feature energy-saving designs such as hull lightweighting and
ed to the vessel's frontline team. The Company strictly enforces regulations for vessel carriage of hazardous optimized lines to enhance propulsion efficiency and energy utilization, reduce fuel consumption and greenhouse gas emissions,
chemicals. The cargo that does not meet safety standards or involves under-declaration or non-declaration and drive the green and low-carbon development of the fleet. During the Reporting Period, two of these vessels ("XT SEA LION" and
of hazardous properties is not loaded in accordance with regulations, eliminating safety risks at the source. "XT SEAL") were delivered and put into operation, with the remaining four under construction.
Throughout the entire loading/unloading and navigation process, the Company strictly implements
During the Reporting Period
standardized specifications for hazardous chemicals operations. It deepens ship-shore coordination
mechanisms, and conducts safety communication confirmations and joint on-site inspections before op-
Loading/Unload-
erations to promptly address safety concerns. Patrol and monitoring positions are scientifically arranged,
and critical equipment such as hoses and valves is ensured to meet technical specifications and undergo
Among the Company's 10 foreign trade vessels, aside from 2 newly operational vessels without CII rating data yet,
ing and Navigation
Management regular inspection and maintenance. Simultaneously, full-area firework controls are implemented, strictly
prohibiting open-flame work and high-risk operations that can generate sparks. Navigation monitoring and
The Company plans to implement optimization adjustments to strive for all foreign trade vessels to attain a CII rating of C
watchkeeping systems during voyages are strengthened, and crew members are adequately equipped with
professional protective gear, systematically reducing operational and navigational safety risks. and above.
The Company ensures that vessels develop specific emergency plans for safety and pollution prevention,
regularly organizing practical drills. Sufficient professional emergency equipment for firefighting, first
aid, and spill control is provided. In the event of an emergency, procedures for rapid reporting, scientific
Emergency and
Post-Incident assessment, and decisive action are strictly followed. Post-incident, in-depth investigation, analysis, and
Management experience review are promptly conducted to promote continuous optimization of management systems
and operational processes, establishing a closed-loop "prevention-response-improvement" mechanism to
achieve a spiral increase in safety management level.
Hazardous Substances Management
The Company, strictly adhering to IMO and relevant domestic regulations, has established procedures such as the Instructions for Preventing
Pollution by Noxious Liquid Substances in Bulk, Instructions for Preventing Pollution by Harmful Packaged Substances, Instructions for Pre-
venting Garbage Pollution from Ships, and Instructions for Preventing Sewage Pollution from Ships. Antifouling paints used on vessels comply
with the requirements of the IMO's AFS Convention. For various materials such as fuel oil, lubricating oil, toxic and hazardous chemicals, and
marine spare parts, the Company implements management measures including isolated zones, sealed storage, and clear labeling, comple-
mented by spill prevention facilities and emergency response equipment. During material transport, strict use of dedicated containers and
standardized management ensures safety, controllability, and full traceability throughout all stages of loading, transportation, and storage.
Xingtong Shipping Co., Ltd.
Green Ship Retrofitting
Study
Case
Delivery and Operation of Methanol Dual-Fuel Sister Ships Empowering Green and Aiming to enhance the energy efficiency and reduce emissions of its fleet, Xingtong Shipping systematically advances green ship
Intelligent Chemical Transport retrofitting, covering areas such as power system optimization, hull resistance control, auxiliary equipment energy saving, and intel-
ligent operations management. By combining technological upgrades with refined operations, the Company continuously reduces
The "XT SEA LION" and "XT SEAL," as the first two delivered vessels in the Company's 25,900 DWT methanol dual-fuel stainless steel
fuel consumption and pollutant emissions, enhancing the green competitiveness of its fleet.
chemical tanker series, integrate green, low-carbon features with high-end intelligence and global service capability, representing a
milestone in the Company's green, high-end fleet development.
Both vessels utilize low-carbon technology pathways, such as methanol dual-fuel readiness, and incorporate comprehensive hull
energy-saving and efficiency optimization solutions in their design to enhance propulsion efficiency and fuel economy, demonstrat-
ing a forward-looking commitment to green shipping.
Green Retrofitting Initiatives of Ships
Additionally, the vessels are equipped with intelligent ship management systems that integrate functions such as intelligent naviga-
tion, intelligent engine room, intelligent energy efficiency, and intelligent information integration. These systems enable real-time
collection of navigation status, equipment operation, and key energy consumption data, supporting intelligent decision-making
and precise control through data analysis, significantly enhancing the digitalization and refinement of vessel operations.
Regarding environmental performance, these vessels meet the EEDI Phase 3 requirements. Their main engines and generator
sets are equipped with Selective Catalytic Reduction (SCR) systems to meet the IMO Tier III emission standards. They have also
Power System Optimization Hull Resistance Control
been awarded relevant environmental class notations by the American Bureau of Shipping (ABS), such as ENVIRO, Methanol Fuel
Ready Level 1C, and EEDI-PH3, which further reduce air pollutants like nitrogen oxides while minimizing greenhouse gas emissions.
Through the combined application of clean fuel pathways and energy-saving/emission-reduction technologies, Xingtong Shipping Install shaft generators to utilize the Apply new low-resistance antifouling
continuously reduces the carbon footprint of its vessels, driving the green, low-carbon, and high-quality development of its fleet. surplus power from the main engine coatings (such as the high-standard
for electricity generation, reducing the tin-free linear polishing polymer anti-
runtime of the auxiliary engine to low- fouling paint used on "XT PROGRESS")
er fuel consumption and emissions. to the hull surface to inhibit marine
Add Propeller Boss Cap Fins (PBCF) growth and maintain hull smoothness.
to the propeller to recover rotational During the Reporting Period, "XT
energy from the wake, improve water HONESTY" conducted two hull fouling
flow, enhance propulsion efficiency, cleanings operations to reduce sailing
and reduce the power demand of the resistance, while "Xingtong 799" com-
main engine at a given speed. pleted one hull resistance control.
Auxiliary Equipment Energy Saving Intelligent Operations Management
Utilize variable frequency drives (VFDs) Utilize Hi-fleet software for route opti-
for auxiliary equipment such as fans mization, avoiding adverse weather by
and pumps to automatically adjust integrating weather and sea condition
speed and power based on actual forecasts, and leveraging favorable
operating conditions, avoiding energy currents and winds, potentially achiev-
waste. Comprehensively replace light- ing voyage energy savings of 2%-5%.
ing with high-efficiency fixtures like Introduce the AQUAMETRO fuel flow
LEDs to reduce lighting power load. consumption monitoring system for
Use high-efficiency electric heaters real-time, accurate fuel consump-
instead of oil-fired boilers during low tion tracking, identifying abnormal
load or berthing to reduce boiler starts consumption, optimizing routes and
and pollutant emissions. Optimize the driving practices, while also providing
ship's electrical grid to enhance power data validation for the effectiveness of
savings. energy-saving technologies and guid-
Successful Naming and Delivery Ceremony for "XT SEA LION" and "XT SEAL" ing maintenance decisions.
Xingtong Shipping Co., Ltd.
International Routes and Talent Strategy Technology Empowerment, Leading the Industry's Digital Transformation
In 2025, Xingtong Shipping's global capabilitiescontinued to strengthen. Throughout the year, the Company served clients across 47
countries and regions and called at 214 ports globally. In the domestic market, 18 new customers were added, successfully onboard- As the core content of the "One Platform" in the Company's strategy, Xingtong Shipping actively promotes the construction of a
ing international chemical giants like ExxonMobil and BASF, continuously optimizing the high-end client mix. In the international digital platform for chemical supply chain logistics, demonstrating a firm commitment to driving digital transformation. By inde-
market, the route network accelerated its shift from "regional" to "global," with new routes opened to Chile and Peru in South Ameri- pendently developing the "AI-XingZai" shipping model with characteristics specific to chemical shipping, and introducing advanced
ca, further refining the pan-oceanic route system and achieving sustained enhancement of global cargo transportation capacity. technologies such as big data, cloud computing, and the Internet of Things (IoT), the Company has achieved monitoring and intel-
ligent management of logistics processes, effectively improving the operational efficiency of the supply chain and reducing operat-
ing costs. The construction of this digital platform not only provides the Company's customers with more convenient and efficient
services but also offers valuable insights for the digital upgrade of the chemical supply chain logistics industry.
Self-Developed Project List in 2025
International Ship Cost Integration Intelligent Crew
Intelligent Ship Scheduling
with Kingdee Cloud Constellation Scheduling System
Ship Operations "AI-XingZai" Ship Risk
"AI-XingZai" Agent
Visualization Platform Agent Platform Management Platform
Riding the wave of digitalization, Xingtong Shipping accelerates the transformation and upgrade to "smart shipping." The Company
has integrated APIs from DeepSeek and Zhipu AI's large models, and independently developed the "AI-XingZai" intelligent platform
tailored for hazardous chemicals shipping, deeply embedding artificial intelligence into all aspects of vessel operations and man-
agement. This platform integrates the Company's long-term in-house developed "Shipping Butler" system and collaborates deeply
with digital platforms like Kingdee Cloud Constellation and Kingdee Cloud Cosmic, covering various functional modules, including:
International Routes
Intelligent Intelligent Ship Optimized Route Dynamic Port
Cargo Stowage Dispatching Design Monitoring
In December of the same year, the joint inauguration of Fokai Ship Management and Fuxing Seafarer Management marked a crucial
Eight Functional
step in the Company's construction of an international shipping service system. Fokai Ship Management aims to build an interna-
Modules of
tional, standardized ship management system; Fuxing Crew Management aims to establish a full-cycle talent management system. "AI-XingZai"
This achieves a deep integration of "vessel assets + human capital." This strategic move not only enhances the Company's global Navigation Safety Ship Inspection Chemical MSDS Shipping
operational capabilities but also signifies Xingtong Shipping's strategic transformation and upgrade from "scale expansion" to "ca- Warning Tracking Inquiry Knowledge Base
pability-driven" growth.
Through the coordinated integration of the above
modules, the "AI-XingZai" platform achieves intel-
ligent, collaborative management across the ship-
ping business chain. After thorough testing, its core
functionalities have been stably deployed and oper-
ational in the Company's key operational scenarios
since June 2025.
AI-XingZai Intelligent Agent Assistant Platform
Xingtong Shipping Co., Ltd.
In advancing its smart shipping development, the Company has introduced AI-assisted development, embedding AI tools into the re- Intelligent Dialogue in Corporate Knowledge Base
quirement design and iterative development of its core self-developed systems. This supports rapid prototyping, automated code gen-
eration and optimization, and swift data and interface construction, significantly shortening development cycles and reducing cross-de- An intelligent internal corporate knowledge base system has been built. Leveraging natural language pro-
partmental communication and modification costs. These practices have been applied in the development of modules such as green cessing technology, it enables efficient knowledge retrieval, precise question answering, and automated
voyage analysis, operational visualization dashboards, and risk management, enhancing platform stability and scalability, and providing knowledge recommendations. This system helps em-
technical support for refined operations and green, low-carbon management. ployees quickly access key information such as corporate
policies, process guides, industry regulations, and opera-
Vessel Operations Management tion manuals. It promotes knowledge sharing, enhances
team collaboration efficiency, optimizes the corporate
"AI-XingZai" leverages multi-dimensional information, includ- decision support system, and provides more precise in-
ing historical voyage data, port operation efficiency, meteoro- formation support for business operations.
logical data, shipping market dynamics, and vessel queue sta-
tus to achieve intelligent route pre-scheduling and dispatching
optimization, reducing labor costs and significantly improving Crew rotation Scheduling
vessel utilization and operational efficiency.
By integrating multi-dimensional data such as crew skills, contract duration, route requirements, and
vessel type, intelligent algorithms are used to optimize rotation scheduling. This system effectively
Engine Room & Cargo Hold Monitorin improves human resource utilization efficiency, ensures personnel matching, reduces operational
costs, minimizes the complexity of manual scheduling, and enhances the precision and flexibility of
To enable shore-based teams to promptly understand the operational status of onboard equipment,
crew deployment.
the intelligent ship system platform collects real-time operational data from engine room equipment
and presents it intuitively on the platform. By setting reasonable thresholds, the system can issue timely
alerts for abnormal equipment operation, helping managers quickly locate faults and make accurate
Financial Data Analysis
diagnostics. Shore-based managers can monitor critical information such as ship pressure and tem-
perature in real-time through the system, promptly identifying cargo leakage or abnormal temperature The Company's self-developed International Ship Cost Integration with Kingdee Cloud Constellation
conditions, thereby ensuring safe cargo transport and effectively reducing risks and incidents. provides standardized expense reporting and collection interfaces for overseas ship management
companies, supporting their efficient upload of ship operation-related expenses. Data is automatical-
ly synchronized to the Kingdee Cloud Cosmic and Constellation financial systems, enabling automat-
ed aggregation, categorized accounting, and multi-dimensional analysis of international ship costs,
thereby improving expense transparency and settlement efficiency.
Empowering Operational Processes with Digital Intelligence
Cost Control Monitoring
The Company has established standardized original records and statistical ledgers for energy consumption by While advancing the construction of its smart shipping platform, Xingtong Shipping continues to strengthen data governance and
installing metering equipment such as smart electricity meters and fuel flow meters. It relies on the "Ship Ener- data valorization. During the Reporting Period, the Company completed data intellectual property registration for its "Dataset for
gy Efficiency Management Digital Platform" for real-time data collection, monitoring, and comparative analysis. Crew Service History and Dispatch Stability Assessment." Following the "Ship Operation Efficiency Analysis Dataset," this marks
Leveraging the powerful data analysis and computational capabilities another instance of data rights confirmation, demonstrating substantive progress in transforming shipping data into a factor of pro-
of DeepSeek, the platform accurately calculates ship energy con- duction and an asset. Centered on a unique crew identifier, this dataset integrates indicators such as qualification matching, service
sumption and optimizes speed, fuel configuration, and refueling plans stability, certification status, and availability for dispatch to form a crew competency profile. Through standardized governance and
based on different sailing conditions, thereby reducing fuel costs. compliant desensitization, it is dynamically updated. It has been applied to intelligent sched-
Furthermore, real-time monitoring of the operational status of marine uling and talent pipeline development, supporting coordinated dispatch and resource sharing
mechanical and electrical equipment enables early warning of poten- 智能船舶系统平台 among subsidiaries, and driving the transformation of management from experience-based
tial equipment failures, reducing equipment maintenance costs. Intelligent Ship System Platform judgment to data-driven decision-making.
Navigation Safety Warning During the Reporting Period, all newly delivered vessels were equipped with advanced in-
telligent ship management systems, integrating functions for intelligent navigation, engine
The platform integrates a high-throughput satellite broadband room management, energy efficiency, and information management. These systems enable
system, CCTV smart monitoring, AI behavior recognition, and real-time collection of navigation status and key energy consumption data, as well as big data
a navigation safety assistance system to build an integrated
analysis, thereby facilitating intelligent decision-making and precise control, significantly
ship-shore intelligent navigation safety management platform.
enhancing the level of operational intelligence. The deep application of digital and intelligent
Combined with authoritative meteorological data, it intelli-
technologies empowers the Company, building a new, efficient, and safe model for smart ship-
gently analyzes sea area weather conditions to proactively
ping. This further solidifies Xingtong Shipping's leading position in the hazardous chemicals
avoid risks and ensure navigation safety. CCTV System Data Intellectual Property
transportation sector. Registration Certificate
Green Guided by the concept of green development, Xingtong Shipping integrates environmental management
into its corporate strategy and daily operations. It systematically advances key tasks, including responding
to climate change, enhancing environmental compliance and emergency management, strengthening
Empowerment ecological protection, improving pollutant and waste management, and enhancing resource and energy ef-
ficiency. The Company is committed to consolidating its management foundation through system develop-
ment and capacity building, promoting energy conservation and emission reduction via technological ad-
vancement and management optimization, and improving environmental performance through continuous
Setting a Benchmark for improvement. It strives to achieve harmony between shipping operations and the ecological environment,
Low-Carbon Shipping providing solid support for the Company's high-quality and sustainable development.
Climate Change Adaptation and Mitigation 37
Environmental Management and Ecological Protection 42
Pollutant Emissions and Waste Management 45
Circular Economy and Resource Utilization 48
Xingtong Shipping Co., Ltd.
Climate Change Adaptation and Mitigation
Governance Strategy
Xingtong Shipping follows its established ESG governance structure to ensure that the identification of climate-related risks and By referring to publicly available scenario models from the Intergovernmental Panel on Climate Change (IPCC) and the International
the formulation and execution of strategies are effectively managed and supervised. The Board of Directors, as the highest deci- Energy Agency (IEA), and based on factual evidence such as shipping industry development trends, the Company identifies poten-
sion-making body, is responsible for reviewing long-term strategies, major objectives, and risk response policies related to climate tial transition risks, physical risks, and opportunities across three time horizons: short-term (2025–2026), medium-term (2026 [in-
change. The functional departments and subsidiaries are responsible for implementing various energy-saving and emission-reduc- clusive] -2030), and long-term (2030 [inclusive] -2050), and comprehensively analyzes the potential impacts of climate-related risks
tion measures, as well as completing relevant data monitoring and performance improvement. and opportunities.
Under this governance framework, the Company continuously improves and implements its energy conservation and emission
reduction management procedures, integrating these efforts into daily operations. Through periodic reviews and continuous im-
provement mechanisms, it consistently enhances energy efficiency and carbon reduction results, driving the Company's green
transformation and striving for harmonious coexistence with nature.
Impact
Financial Impact
Risk Type Description on Value Countermeasures
Impact Duration
Chain
• A closed-loop management mechanism has been established by building a systematic carbon manage-
ment and compliance fulfillment framework and setting up a dedicated task force.
• Continuously and closely track the dynamics of key policies such as the EU ETS and FuelEU Maritime, as
well as changes in carbon allowance prices. Conduct compliance impact assessments and cost calcula-
tions to support advanced planning and procurement decisions.
• Strengthen relevant personnel's understanding and implementation capabilities regarding the key
Short-term points, scope of application, and compliance strategies of new regulations through specialized training
• Global shipping emission reduction policies (e.g., EU-ETS, FuelEU Maritime) Operations
Policy and Legal and internal communication on topics like carbon trading, laying the foundation for fleet optimization
are continuously strengthened, imposing stricter requirements on vessel emis- Cost Increase Medium-term
Risk Downstream and compliance fulfillment.
sions, leading to increased compliance costs. Failure to meet requirements Long-term
• Focus on optimizing fleet fuel and energy efficiency management in line with new regulations, and coor-
dinate the allocation of compliance resources to achieve coordinated compliance across routes, ensuring
business operations meet regulatory requirements.
• Open special green deposit accounts with banks to ensure funds are directed towards projects that
meet green and low-carbon industry standards. The use of these funds is verified by third-party en-
vironmental assessments, helping to support the Company's green transformation and low-carbon
shipping development.
Tran- • Track information on the latest technological developments, policy changes, and market ac-
sition ceptance of clean-fuel-powered vessels. Advance the planning and implementation of methanol
Risk
• The research, development, and application of ship energy-saving technolo- dual-fuel retrofits for the fleet.
gies, including direct and indirect measures such as hull drag reduction, engine
• Accelerate the intelligent upgrade of vessels, enhancing the energy efficiency management and
efficiency upgrades, and route optimization, are becoming mandatory require-
Medium-term Upstream operational level of its fleet through digital and intelligent retrofits, providing technical support
Technology Risk ments. Cost Increase
Long-term Operations for emission reduction.
• Accelerating the deployment of clean-fuel-powered vessels has become an in-
• Systematically incorporate carbon reduction requirements and assessments during the ship de-
dustry trend, but this process also entails significant risks, such as high retrofit
sign, testing, and modeling phases to shape low-carbon competitiveness from the source.
costs, technological uncertainty, and challenges related to market acceptance.
• Actively participate in industry conferences, seminars, and other activities to acquire the latest
information and experience.
• As shipping is a high-energy-consumption, high-emission industry, if the Company
fails to effectively address climate change, its environmental image could be severely
• Establish and maintain a robust environmental management system to ensure the effective im-
damaged, making it difficult to attract and retain stakeholders such as investors,
plementation of all environmental protection measures.
banks, customers, suppliers, and employees who are concerned about climate Revenue Decrease Upstream
change.
• Establish communication channels with stakeholders, respond to their concerns and feedback
Reputation Risk Financing Costs Long-term Operations
promptly, and enhance trust and cooperation.
• Environmental regulations in the hazardous chemicals transportation industry are Increase Downstream
becoming stricter, and customers and consumers are increasingly environmentally
• Organize in-depth training for employees on relevant environmental regulations to ensure the
Company's operations comply with legal requirements.
conscious. Inadequate emission reduction or energy efficiency management meas-
ures by the Company could lead to reputational damage.
Xingtong Shipping Co., Ltd.
Financial Impact Du- Impact on
Risk Type Description Countermeasures
Impact ration Value Chain
• The Company collaborates with third-party organizations to monitor the impact of real-time weath-
er on routes, helping to mitigate climate risks (such as monsoons, typhoons, ocean currents, haze,
high temperatures, and sea-level rise). It has established a comprehensive meteorological warning
and route adjustment mechanism to proactively avoid high-wind areas and reduce impacts.
• Strengthen the wind and wave resistance design of key vessel components and conduct regular in-
spections to ensure equipment reliability under severe sea conditions.
• The Company has formulated and implements the Emergency Instructions for Adverse Weather
• Climate change leads to more frequent extreme weather events such Damage to standardize vessel navigation operations under adverse weather conditions, ensuring the
Cost Increase
as typhoons and storms, which can damage vessels and port facilities safety of personnel, the vessel, and cargo.
and increase risks during navigation and loading/unloading oper- Increased Insurance Operations • At the preventive level, the captain and navigating officers are required to promptly analyze meteor-
Acute Risk Short-term
ations. Prolonged adverse weather can delay shipping schedules, Premiums ological data, assess trends of marine weather changes, and optimize routes. Preparations such as
Downstream
watertight closure, stability management, and lashing and securing to prevent shifting are made in
reduce fleet turnover efficiency, and increase insurance claims and
Revenue Decrease advance. Simultaneously, the main engine, steering gear, and ship communication equipment are
operational costs.
checked to ensure the reliability of critical equipment. At the response level, lookouts are intensified
Physical Risk during navigation, and the course and speed are adjusted according to wind and wave conditions. In
case of drifting caused by main engine or steering gear failure, measures such as anchoring nearby,
heaving to, emergency repairs, checking watertight integrity, and reducing free surface effects are
taken based on the water depth and channel conditions. The competent authorities and the Com-
pany are notified promptly according to the Ship and Shore Emergency Response Procedures, and
rescue is requested. If damage occurs, a maritime declaration is properly made, relevant documen-
tation is retained, and the inspection checklist is filled out as required.
• Sea level rise affecting cargo discharge and berthing: Rising sea levels will • Conduct comprehensive assessments of existing ports' adaptability to sea level rise, pri-
impact cargo discharge operations and berthing at existing ports and may oritizing those with strong adaptability for berthing and cargo discharge. Regularly update
reduce the number of available ports. nautical information such as electronic navigational charts to ensure vessels have access to
Operations the latest data on channels, water depths, and port facilities to address challenges posed
Chronic Risk • Changes in average wind speed affecting navigation and onboard oper- Cost Increase Long-term
by environmental changes like sea level rise. Real-time monitoring of vessel performance,
Downstream
ations: Variations in average wind speed at sea will affect factors such as including key indicators such as speed, fuel consumption, and stability, is carried out. Oper-
vessel resistance and speed, making route planning more challenging ational parameters are adjusted promptly based on environmental factors like sea level rise
and potentially posing safety risks for onboard operations. and wind speed changes to ensure safe and efficient navigation.
Financial Impact Impact on
Opportunity Type Description Countermeasures
Impact Duration Value Chain
• By developing and deploying digital and intelligent ship
Improved Ship Cost Reduction Short-term Operations • Increase R&D investment to build digital and intelligent management systems; contin-
management systems, routes are scientifically optimized,
Resource Operational Efficiency Revenue Increase Medium-term Downstream uously iterate and upgrade to maintain system advancement.
improving vessel operational turnover.
Efficiency
Improvement
• Improve energy efficiency of ships through energy-saving Short-term
• Formulate energy-saving retrofit plans, adopt advanced energy-saving technologies
Improved Ship Energy
retrofits, and the development and deployment of digital Cost Reduction Operations and equipment; strengthen data integration and analysis to enhance decision sup-
Efficiency Medium-term
and intelligent management systems. port; train crew members to improve proficiency in using advanced systems.
• Deploy dual-fuel powered vessels capable of using low-car- Increased Green Upstream
Energy Utilization of Medium-term • Evaluate existing vessel power systems and select suitable dual-fuel power system solu-
bon energy sources such as methanol and LNG, and gradu- Financing Operations
Transition Low-Carbon Energy Long-term tions for retrofitting or newbuilds, ensuring technical feasibility and economic viability.
ally increase the proportion of low-carbon energy used. Revenue Increase Downstream
• Actively explore green methanol supply solutions, focusing on research and selection,
• Continuously research and develop green ship technologies Upstream
Products Development of fleet development, and supply chain construction, positioning green methanol as the
to build green vessels, enhancing competitive advantage Revenue Increase Long-term Operations
and Services Green Vessels primary direction for ship clean fuel at the current stage, and advancing energy-saving
and improving customer retention. Downstream
technical retrofits and intelligent control.
Increased Market Demand • The manufacturing and processing industries require green
Market Medium-term • Analyze the demand distribution in the clean energy and chemical transportation
for Clean Energy and transformation and industrial upgrading, leading to increased Revenue Increase Downstream
Expansion Long-term markets to rationally plan transport routes and service networks.
Chemical Transportation demand for clean energy and chemical transportation.
• Accelerate the expansion of international routes and the • Conduct in-depth research on international routes and the clean energy transporta-
Increased Green Medium-term
clean energy transportation business to effectively address Operations tion market, analyzing market demand, competitive landscape, and potential risks.
Resilience Diversified Layout Financing
risks from the relocation of chemical industry chains and Long-term Downstream Formulate long-term strategic plans, clarifying goals, pathways, and timelines for ex-
Revenue Increase
the trend of clean energy transition. panding international routes and the clean energy transportation business.
Xingtong Shipping Co., Ltd.
Impact, Risk, and Opportunity Management Environmental Management and Ecological Protection
The Company systematically identifies and assesses climate-related risks that may arise during operations, focusing on the nature
of the risks, the time horizon of impacts, and potential financial implications, and takes appropriate measures to control these risks
within acceptable levels. In 2025, based on its actual operating situation, the Company built and improved its climate change risk Xingtong Shipping's transportation business of liquid dangerous cargoes is inherently high-risk, as the cargoes transported are typically
response mechanism. Through diverse methods such as internal discussions, expert consultations, and participation in industry ex- polluting. A leak caused by human operational error, equipment failure, or unforeseen events could not only disrupt the balance of the ma-
change conferences, it comprehensively identified potential risks and opportunities related to climate change. Simultaneously, the rine ecosystem and destroy the living environment of marine life but also potentially have a significant impact on the daily lives of coastal
Company formulates and dynamically adjusts its opportunity utilization strategies based on the types, impact time horizons, and residents and local economic activities. The Company strictly adheres to the environmental protection policy of "environmental protec-
potential financial impacts of climate-related opportunities, integrating them with actual operations. This continuously enhances tion, prevention first, and continuous improvement." It has formulated regulations such as the Environmental Protection Management
its climate resilience and operational adaptability. Procedures, Instructions for Preventing Air Pollution from Ships, Instructions for Preventing Domestic Sewage Pollution , and Instructions
for Preventing Ballast Water Pollution from Ships to ensure environmental protection measures are compliant.
The Company's Board of Directors has established the Safety and Environmental Protection Committee, responsible for supervising and
Indicators and Goals
managing the Company's safety and environmental protection efforts. The General Manager is the primary person responsible for environ-
mental management, tasked with ensuring that the environmental management system is integrated into daily operations and business
development. The Company continuously ensures environmental compliance management and has obtained multiple environmental
compliance certifications, including the Environmental Management System Certification, and certificates for International Sewage Pollu-
tion Prevention Certificate, International Oil Pollution Prevention Certificate, Document of Compliance for the Prevention of Garbage Pollu-
tion, International Ballast Water Management Certificate from the China Classification Society.
Environmental Management Structure
CO2 Emission per Unit of Transport Work ≤ 310 (kg/10,000 ton-miles) Achieved
Technical Department
Fuel Oil Consumption ≤ 99 (kg/10,000 ton-miles) Achieved
• Develop environmental protection plans, as well as ener-
gy-saving plans and measures, and conduct comprehen-
sive reviews every six months
Goals and Achievement of Climate Change Adaptation and Mitigation • Guide and evaluate energy conservation and emission
reduction efforts of ships.
• Monitor the engine room's anti-pollution, energy-saving
Indicator Unit 2025 and emission reduction measures.
• Assist ships in handling technical and equipment issues
that arise in anti-pollution prevention efforts
Total GHG Emissions (Scope 1 + Scope 2) tCO2e 164,273.85 Marine Department Ships
General Manager
• Develop the Company's environmental protection plans • Implement anti-pollu-
Approve the Company's and ship pollution accident prevention measures tion and energy-sav-
ing and emission-re-
GHG Emission Intensity (Scope 1 + Scope 2) tCO2e/RMB 1 Million (Operating Revenue) 100.88 environmental protection • Investigate environmental risk factors onboard ships
duction measures
plans, energy-saving • Guide and inspect anti-pollution work of ships
• Regularly conduct
plans, and measures • Monitor and analyze the energy-saving and emis-
energy-saving and
sion-reduction during ship navigation and cargo-relat-
emission-reduction
ed operations
reviews and imple-
• Report anti-pollution deficiencies and pollution incidents ment improvements
Scope 1 GHG Emissions tCO2e 164,096.11
onboard ships • Report pollution haz-
ards, emergencies,
Safety and Quality Department
and incidents of ships
• Investigate environmental risk factors within the Compa-
Scope 2 GHG Emissions tCO2e 177.74
ny's office premises
• Summarize and comprehensively evaluate various envi-
ronmental risk factors to identify significant environmen-
Greenhouse Gas Emissions tal risks
Xingtong Shipping Co., Ltd.
Environmental Emergency Response Biodiversity Conservation
To enhance its capability to prevent and respond to sudden environmental pollution incidents, the Company has established a compre- Marine biodiversity holds significant value within the global ecosystem. The Company systematically identifies and assesses the
hensive emergency coordination mechanism and formed the Emergency Response Team. The General Manager serves as the overall impacts of ship navigation and related business activities on biodiversity. It manages biodiversity conservation under its overall en-
commander, responsible for supervising and coordinating emergency actions and making decisions. The Company has also established vironmental management framework, strictly adhering to international and regional regulations such as the IMO Biofouling Guide-
specialized emergency groups comprising professionals based on shipping expertise, and on-site emergency teams composed of desig- lines and the Ballast Water Management Convention. The Company has also formulated and publicly released the Biodiversity
nated professionals from the emergency leadership group, forming a complete emergency management structure. To address potential Statement to properly manage relevant risk factors and minimize the disruption or damage caused by its business operations to the
marine environmental pollution incidents such as oil spills, chemical leaks, fires, and explosions, the Company has developed emergency
marine ecology.
response plans including the Ship and Shore Emergency Response Procedures, Shipboard Marine Pollution Emergency Plan, and Ship-
board Oil Pollution Emergency Plan. These plans define roles and responsibilities, emergency response procedures, resource allocation,
and pollution control measures for various types of pollution incidents.
The Company regularly organizes emergency response training and drills for crew members on pollution incidents, explaining the correct
usage of emergency equipment and accident reporting procedures, simulating incidents such as oil spills and hazardous material leaks. By Route Planning and Ballast Water
combining theoretical learning with practical operation, these exercises enhance crew members' environmental awareness and emergen- Species Avoidance Management
cy response capabilities, while testing the effectiveness and feasibility of the emergency response plans. During the Reporting Period, the
Utilize ECDIS to designate Particularly Vessels are equipped with ballast water
Company added the Emergency Response Instructions for Nitrogen Leakage and the Emergency Response Instructions for Dangerous Car- Sensitive Sea Areas (PSSAs) and key bio- management systems to standardize
go Reactions. It formulated a five-year ship-shore joint drill plan, and ships developed their own annual drill plans. A total of four ship-shore diversity protection zones as no-go are- treatment procedures. All foreign trade
joint drills were conducted, comprehensively covering all identified emergency scenarios. as. Avoid the right whale reporting areas, vessels are subject to ballast water
maintaining a distance of over 500 yards treatment, while some domestic trade
from right whales. During navigation, vessels are equipped with correspond-
obtain right whale information through ing facilities to prevent the abnormal
multiple channels; upon sighting, main- migration of marine organisms.
Environmental Compliance Education tain a safe speed to minimize the impact
on marine species.
The Company systematically conducts specialized training and awareness and ed-
ucational campaigns focused on the management of exhaust gas, wastewater, and During the Reporting Period,
Noise Control Hull and Biofouling Management
Biodiversity Conservation Measures
solid waste. During the Reporting Period, the Company organized all crew members
the Company invested RMB
and relevant shore-based personnel to participate in specialized training on the lat- Utilize low-noise equipment and opti- Use environmentally friendly antifoul-
est requirements of the MARPOL Convention, compliant disposal procedures for ship
pollutants, and environmental emergency operations. Relevant instructional videos
mize the shafting system during ship
design and construction. Reduce the
ing paints, hull cathodic protection
systems, and silicone antifouling paint
in environmental protection. operating time of the main engine at for propellers to reduce the impact on
and case materials were released via the internal learning platform. Concurrently, high amplitudes and maintain equip- marine ecology. Regularly maintain
the Company displayed pollution prevention posters in public areas of vessels and ment in good condition. Slow down and clean the hull to reduce the risk of
office premises, and regularly published environmental knowledge columns through when approaching PSSAs and key ma- spreading invasive species.
corporate newsletters to strengthen environmental awareness among all employees. rine biodiversity protection zones to
minimize noise.
Onboard Pest Control Oil Spill Emergency Response System
Conduct regular external hull inspec- Based on the Company's Environ-
tions to prevent the spread of marine mental Protection Management Pro-
fouling organisms and shipboard cedures, a full-process oil spill emer-
pests. Strengthen quarantine controls gency response management system
for invasive species such as moths. has been established, forming a closed
Actively carry out self-inspections and loop from risk prevention and control,
specialized surveys for vessels navi- emergency preparedness, and rapid
gating high-risk areas, obtain official response to post-incident ecological
inspection certificates, and reduce the restoration. This enhances the capa-
risk of ecological invasion along inter- bility to respond to sudden environ-
national routes. mental incidents and minimizes the
damage caused by oil spills to marine
life and the ecological environment.
Xingtong Shipping Co., Ltd.
Pollutant Emissions and Waste Management
Exhaust Gas Management
Xingtong Shipping strictly adheres to the requirements of the International Maritime Organization and relevant domestic regula-
tions. It has formulated a series of rules and procedures, including the Environmental Protection Management Procedures and the
Operating Instructions for Preventing Oil Pollution from Ships, to regulate various pollutant emissions and clarify environmental
The Company has established regulations such as the Instructions for Preventing Air Pollution from Ships, which clearly define the
management requirements of ships, ensuring that treatment methods and discharge standards comply with international conven-
management requirements and operating procedures for ship exhaust gas emissions. Ships are equipped with vapor recovery sys-
tions and domestic laws. During the Reporting Period, all of the Company's vessels held valid pollution prevention certificates. No
tems to capture gases generated during navigation and equipment maintenance, sending them ashore for recovery during loading
exceedances of discharge limits for major pollutants, characteristic pollutants, or controlled substances occurred in the Company's
to reduce vapor emissions. For newbuilds, Selective Catalytic Reduction (SCR) systems are added to the diesel engine exhaust for
vessels or operational activities. Through the implementation of measures such as the Ship Energy Efficiency Management Plan,
further denitrification, achieving IMO Tier III emission levels.
ballast water management, and sulfur and nitrogen oxide emission control, discharge levels met and even surpassed regional limit
requirements, maintaining environmental management performance at an advanced industry level.
Ship Wastewater Management
Prevention of Leakage of Toxic
Reduction in Gaseous Pollutant Emissions
and Hazardous Substances
The Company has formulated relevant regulations and procedures, including the Environmental Protection Management Proce- • Assign specialized personnel to regularly maintain and • Adopt low-emission and high-efficiency equipment
dures, Operating Instructions for Preventing Oil Pollution from Ships, Instructions for Preventing Domestic Sewage Pollution, and service anti-pollution equipment, and test pollution and clean fuel technologies, promote the implemen-
Instructions for Preventing Ballast Water Pollution from Ships, to regulate the discharge activities of sludge and bilge, domestic monitoring devices to ensure the effectiveness and reli- tation of technological reforms for ship environmen-
sewage, and slop. ability of pollution control equipment and procedures. tal protection, equip all ships with Vapour Emission
Control Systems (VECS) , and install selective catalytic
• For operations such as tanker washing, discharging bal-
• Ships are equipped with pollution prevention equipment such as oil-water separators and reduction (SCR) denitrification devices for new ships.
last water, and in harbor waters, obtain prior approval
•
Oily Water
oil content meters, which are regularly inspected and maintained to ensure their reliable op- Strictly standardize the operation, maintenance, and
from the relevant departments as required, and fully
eration. Oily water is strictly stored in designated tanks and effectively treated via oil-water overhaul processes of equipment and treatment de-
control the pollution risks of the related operations.
separators or disposed of onshore. vices to avoid the escape of gases during operation,
and reduce the emission of gaseous pollutants such as
nitrogen oxides, sulfur dioxide, particulate matter, and
VOCs in a multi-dimensional manner.
• Discharge is regulated according to MARPOL and the Discharge Standard for Water Pollutants from
Ships, adhering to the principle of prioritizing onshore disposal. Oily tank washings is sent ashore for
Tank Washings
recovery whenever possible. Tank Washings from Category X and other toxic substances that require
mandatory pre-wash is also sent ashore for recovery. Other tank washings strictly complies with the
provisions of MARPOL Annexes I and II and is discharged only when discharge conditions are met.
• Improve the operational processes and supporting facilities for the generation, collection, storage, and
Company's Staged Goals for Exhaust Gas Emissions 2025 Goal Progress
recovery of tank washings, gradually reducing the generation and discharge of wastewater from ships. • Short-term Goal: Maintain and service ship engines, optimize the com-
bustion process, and reduce emissions of nitrogen oxides and particu-
NOx emission density decreased by
late matter.
•
• Medium-term Goal: Research, develop, and apply new exhaust gas puri-
Domestic
Each vessel is equipped with a classification society-certified sewage treatment plant to ensure fication technologies, such as SCR, to further reduce pollutant content in
Sewage
compliant treatment. During port stays and anchorage, sewage is switched to holding tanks. exhaust gases. Accelerate the substitution of traditional high-pollution
fuels with low-sulfur fuels and clean energy alternatives.
Total Ship Wastewater Discharge Discharged to Sea (Compliant Discharge / Total Volume of Shore-Received
(Discharged to Sea + Shore-Received Discharged After Treatment) Wastewater
NOx Emissions SOx Emissions
Shore-Received Domestic Sewage Shore-Received Oily Water (Engine Room) Shore-Received Tank Washings
Xingtong Shipping Co., Ltd.
Waste Management Circular Economy and Resource Utilization
The Company has formulated the Ship Garbage Management Plan and the Instructions for Preventing Garbage Pollution from Ships
to stipulate methods for waste storage and treatment. It actively promotes waste minimization and resource management by opti-
mizing ship material procurement plans and usage processes. The Implementation Plan for the Management of Single-Use Plastic
The Company has built a full-chain resource utilization system covering green ship operations, full-cycle material management, wa-
Products on Ships has been developed to reduce the use of disposable items and packaging materials, while electronic office prac-
ter resource optimization, and green office practices. By improving energy management standards, establishing digital monitoring
tices are promoted to reduce paper consumption. The Company has established an environmental data monitoring system to com-
platforms, implementing refined material control, and undertaking water-saving technical retrofits, it continuously enhances re-
pile monthly statistics on waste classification and disposal for each vessel. Quarterly analysis reports on the progress of emission
source efficiency, reduces environmental load during operations, and steadily advances towards a new model of resource-conserv-
reduction are prepared to compare actual performance against established goals. Goal achievement is incorporated into the annual
performance assessment system for ship management and relevant departments, ensuring transparency, traceability, and continu- ing and sustainable maritime development.
ous improvement of the goal management process.
Resource Conservation
The Company strictly adheres to regulations and standards such as the IMO's Ship Energy Efficiency Management Plan and the China
Waste Type Treatment Method Maritime Safety Administration's Measures for the Management of Ship Energy Consumption Data and Carbon Intensity. It has estab-
lished a comprehensive energy management system, formulated the Energy Conservation and Emission Reduction Management Pro-
• Sent ashore for recovery whenever possible. cedures , and developed the "Energy Efficiency Management Plan," clarifying responsibilities at various levels for both ship and shore
Food Waste • May be discharged when regulatory requirements are met (beyond 12 nautical operations. By installing smart metering equipment, it has established energy consumption record ledgers and relies on the "Ship En-
miles from the territorial sea baseline). ergy Efficiency Management Digital Platform" for real-time data collection, monitoring, and analysis. The Company's primary energy
sources are purchased marine fuel and shore-based electricity. Monthly energy consumption and voyage efficiency indicators (such as
• Disposal into the sea is prohibited at all times. It is sorted, collected, and stored ac-
EEOI) are included in statistical reports, serving as a basis for management reviews and continuous improvement.
Domestic Waste (Plastic, Glass, Metal, etc.) cording to MARPOL requirements and handed over to compliant port reception facili-
ties upon arrival at port.
Operational Waste (Scrap Metal, Waste
• After collection and sorting, qualified partners are entrusted with professional recy- 2025
cling or compliant disposal (e.g., waste lubricating oil is recycled into secondary indus- Total Fuel Oil Consumption
Lubricating Oil, Scrap Parts, etc.) Total Energy Consumption (Own Vessels, Voyage Charter)
trial raw materials, old equipment parts are refurbished for use in ship maintenance).
By Waste Category
Non-hazardous waste generated Hazardous waste generated
By Waste Management Method
Discharged into the sea after treat- Incinerated
ment in accordance with MARPOL
Annex V (Food Waste)
Discharged to reception facilities
Xingtong Shipping Co., Ltd.
The Company is committed to continuously reducing material consumption and waste generation through refined full-process con- During the Reporting Period, the Company continuously improved its water resource management. Measures such as process op-
trol, gradually building a resource-conserving and environmentally friendly maritime operation model. Guided by the goal of im- timization and the refinement of tank washing procedures were implemented to reduce water usage and enhance water utilization
proving resource efficiency and promoting a circular economy, the Company has established clear material management objectives efficiency.
and implementation plans. The Company plans to increase the comprehensive utilization rate of key materials in ship operations by
ment of a closed-loop management system. During the Reporting Period, through full-cycle closed-loop management of materials, Equipment Optimization and Upgrade
the Company significantly improved material utilization efficiency. A total of 646.49 m? of waste was recycled and reused, account-
ing for 35.38% of total waste, achieving sustainable development goals in resource conservation and environmental friendliness. • Modify the nozzle diameter of tank wash-
ers on some vessels, reducing hourly water
Freshwater Self-Sufficiency and Substitution
Full-Cycle Resource Management of Materials consumption from 10 m? to 5.5 m?. New-
builds will be equipped with tank washers
• Ships utilize water makers to produce
featuring smaller nozzle diameters.
fresh water for non-potable applications.
Procurement and Supply Chain Management Product and Material Design • Promote the recycling of heated cargo tank
• Stainless steel vessels are piloting a "Ini-
water to improve the rate of water reuse.
tial wash with seawater + fine wash with
Prioritize the procurement of environmentally cer- Advance lightweight and energy-efficient ship fresh water" mode for tank washing.
tified, recyclable materials and standardized com- design, implement standardized and modular de-
ponents, while incorporating circular economy sign for ship materials, and extend the service life
indicators into the supply chain evaluation system.
Water Conservation Measures
of spare parts. Compliance Management
Operation and Maintenance Production, Storage, and Logistics • Formulate the Ballast Water Management Plan, certified by
the China Classification Society.
Promote preventive maintenance and a mech- Implement a system for material requisition and
anism for repairing and reusing old materials to surplus material recovery during the production
reduce the consumption of new materials. and manufacturing stage. Utilize digital platforms
to optimize warehousing and distribution net- 2025
works, reducing material redundancy. Optimize
routes and cargo loading plans during transpor- Total Water Consumption Ship Water Consumption Office Water Consumption
tation to lower empty running rates and energy
consumption.
Recycling and Resource Utilization
Improve the collection and recycling processes for waste oil, wastewater, scrap metal, and plastics, collaborating
Green Office
with compliant agencies to achieve the resource-based regeneration of waste materials.
The Company continues to deepen its green
office initiatives. During the Reporting Pe-
riod, intelligent air curtain systems were
installed in all elevators, leveraging infrared
sensing and smart temperature control tech-
nology to achieve self-adaptive start/stop
and airflow adjustment based on foot traffic,
thereby reducing air conditioning energy
consumption. In daily office operations, the
Company vigorously promotes paper-saving
actions, advocating for double-sided print-
ing, widely procuring and using recycled pa-
per products, and encouraging employees to
reduce paper material consumption through
electronic office tools and online approval
processes, thereby minimizing resource
waste at the source. Paper Conservation
tegrating social responsibility into its management and business operations. It continuously advances
management enhancement and practical implementation around key topics such as customer service
and product quality, data security and customer privacy protection, supply chain security and sustainable
Co-creation procurement, employee employment and development, occupational health and safety, community en-
gagement, and industry collaboration. The Company meets customer expectations with stable and reliable
transportation services, strengthens data and information security assurance through robust systems and
training, promotes partner growth via standardized supplier management and responsible procurement,
Enhancing Safety and and continuously enhances employee satisfaction and organizational resilience through talent develop-
ment and safety culture cultivation, consistently creating long-term shared value for its stakeholders.
Service Levels
Innovation-Driven Development and Intellectual Property 53
Product and Service Safety and Quality 54
Data Security and Customer Privacy Protection 56
Supply Chain Security 60
Employment and Employee Rights 62
Employee Training and Development 69
Occupational Health and Safety 71
Fostering Community Co-development 76
Collaborating for Industry Progress 78
Xingtong Shipping Co., Ltd.
Product and Service Safety and Quality
Innovation-Driven Development and Intellectual Property Xingtong Shipping has built a full-process, internally and externally coordinated quality management system. It has formulated
systems such as the Customer Evaluation Management System, Customer Complaint Management System, and Customer Satisfac-
tion Survey and Complaint Management Procedure to continuously improve service quality and operational efficiency. Internally,
an efficient collaboration mechanism has been established. The Ship Management Department communicates with crew members
Xingtong Shipping places high importance on innovation and R&D. Guided by the philosophy of "People-Oriented, Innova-
in advance before voyage execution, and the Market Operations Department proactively coordinates with the Ship Management
tion-Driven, Responsibility-Sharing," it has established an R&D management system grounded in robust systems, driven by
Department, the Marine/Engine Department, and others to ensure smooth internal information flow and efficient execution. Exter-
collaboration, and oriented towards value. Through clear role division, transparent decision-making mechanisms, and con-
nally, a proactive communication mechanism has been set up, led by the Market Operations Department, which organizes relevant
tinuous knowledge sharing, it consistently enhances the team's professional capabilities and organizational resilience. The
personnel to communicate with customers and terminals before voyage execution to ensure smooth business coordination. Con-
Company's software development strictly adheres to the Software Development Management System and the Application
currently, a dedicated service quality communication group, centered around the Operations Supervisor and including Marine and
System Management System, integrating agile thinking with structured management to form a full-process development
Technical Superintendents, has been formed. This allows for the creation of vessel-specific working groups, enabling rapid problem
mechanism that balances efficiency, quality, and compliance.
response and resolution. The Operations Department leads a service quality seminar every two months, defining core issues and
In intellectual property management, Xingtong Shipping has formulated the Intellectual Property Management System. The inviting crew representatives to participate, pooling wisdom to continuously optimize service processes and solidify the foundation
Company's Administration Office serves as the primary management department, overseeing IP management, including of quality management.
system implementation, application/registration, protection, and management. The Digitalization Department is responsi-
ble for the specialized management of computer software copyrights and patents. Each department manages R&D results,
Service Quality Improvement Measures
on-the-job technical achievements, service works, and other intellectual outcomes within its respective scope of responsi-
bilities, forming an organizational structure characterized by unified management and division of labor.
• Conduct specialized training on service quality, inviting industry experts or senior
During the Reporting Period internal managers to teach, using case studies and group discussions.
The cumulative number of • Set up service quality columns on platforms such as internal bulletin boards, inter-
the Company invested RMB granted patents reached software copyrights totaled and trademarks totaled Awareness nal publications, and work groups, updating content regularly.
Strengthening • Establish a feedback mechanism for service quality issues, publicly exposing ser-
In its daily management, the Company handles the application, registration, maintenance, licensing, and archiving of patents, • Incorporate service quality into the voyage risk management system, establishing
trademarks, computer software, and other service works. It has established a confidentiality system and manages technical service quality risk assessment indicators and methods to conduct a comprehen-
documents with encryption. The ownership of results is clearly defined in commissioned or cooperative development pro- sive evaluation of service quality risks for each voyage.
jects.Legal and Risk Control Department assists in handling intellectual property disputes, involving both internal employees
and external third parties. Individuals who make outstanding contributions to the formation, protection, or transfer of IP are • Formulate detailed service quality assurance plans for high-risk voyages, clarifying
Risk responsible personnel and key deadlines.
rewarded, while infringements are pursued according to the law. Additionally, the Company enhances employees' IP aware-
Management
ness through promotional training, ensuring the legal and effective protection and transfer of R&D outcomes. • Strengthen real-time monitoring of service quality during voyage execution to
In addition to digital innovation, the Company takes business model innovation as a breakthrough point, deepening collabo- promptly identify and resolve issues.
rative cooperation with leading enterprises in the industrial chain. Through multi-level and multi-field joint venture and coop-
eration innovation, the Company continuously expands its business boundaries and optimizes resource allocation. During the
• Develop a comprehensive customer visit and communication plan. The Marketing
Reporting Period, the Company established a joint venture, Xingtong Lianfa, with C&D Inc., focusing on green shipping deploy-
Department is responsible for cargo owner visits, while the Operations Department
ment and jointly investing in the construction of two methanol dual-fuel stainless steel chemical tankers to seize the initiative
handles public relations visits to ports, maritime authorities, inspection agencies, pilot
in the low-carbon shipping market. Collaboration with Xiamen Xiangyu Co., Ltd. was upgraded from a bareboat charter busi-
stations, etc.
ness synergy to capital integration through the capital increase and share expansion project of HK Xingyao Shipping, forming
• During visits and communications, understand customer satisfaction and feedback, in-
a deep cooperation model of "operational running-in + equity binding" and achieving a precise alignment of the shipowner's
Customer troduce the Company's new services and products, identify potential customer needs,
professional operational advantages with the supply chain resource advantages. A joint venture, Fuxing Crew Management, and gather information on industry trends and market dynamics.
Interaction
was established with Xingyang Shipping to enhance the talent service support system, solidifying the human resource foun-
• Organize and analyze questions and suggestions raised by customers, incorporating
dation for business expansion. The Company's core business does not involve scientific research, technological development
them into the service quality improvement plan, and regularly follow up on the imple-
and other activities in sensitive fields such as life sciences and artificial intelligence ethics. mentation of corrective actions.
Xingtong Shipping Co., Ltd.
Data Security and Customer Privacy Protection
• Refine customer KPI assessment indicators, covering multiple dimensions such as accidents,
maritime inspections, schedule adherence, capacity guarantee, and cargo damage control.
With a core focus on "risk prevention, defense-in-depth, and continuous improvement," Xingtong Shipping has established an infor-
• Clarify the applicable vessels, ship responsible personnel, and shore-based responsible person-
mation security protection mechanism covering all IT/OT systems across its ship and shore operations. It defines full-process man-
Assessment nel for each assessment indicator, and establish specific deduction rules. Set bonus points for
agement requirements and implements key measures such as asset classification, access control, vulnerability remediation, and
and Incentives factors such as written commendations, undertaking special urgent tasks, cooperating in port
clearance, and resolving challenging issues. emergency drills to meet international and domestic standards like IMO requirements and ISO/IEC 27001. This ensures navigation
safety, data security, and business continuity, applicable to all employees, contractors, and authorized third parties.
Governance
• Conduct satisfaction surveys around dimensions such as ship transportation (cargo quali- Adhering to the principles of "risk orientation, full participation, continuous improvement, compliance, and responsibility," the Com-
ty, damage, schedule, vessel condition, and safety), service capabilities (professionalism of pany strictly complies with laws and regulations such as the Data Security Law of the People's Republic of China and the Cybersecurity
business personnel and crew), and overall evaluation.
Law of the People's Republic of China. It has formulated systems such as the Ship and Shore Network Information Security Manage-
Customer • Collect feedback through methods such as written surveys upon time charter contract ment Manual, Network Security Management System, and Computer Information Security Management System, establishing a stable
Satisfaction expiry, annual sample questionnaires for voyage charters, customer visits, and symposi- information security management system to effectively safeguard the Company's information and data security.
Improvement ums. Compile an annual survey report, facilitate departments in formulating improvement
measures, and track the effectiveness of implementation. The Company's Digitalization Department serves as the core, with the Information Security Task Force leading work related to data
security and customer privacy protection. Senior management is responsible for decision-making and oversight, while the Legal and
Risk Control Department provides compliance support. Business departments ensure policy implementation at the grassroots level.
The Information Security Team is primarily responsible for implementing relevant policies and ensuring they align with strategic ob-
jectives and laws/regulations, ensuring the coordinated development of digitalization and information security. It directly manages
• Maintain accessible complaint channels, including telephone, written correspondence/email, the Information Security Task Force, overseeing policy, technology, and process management. It conducts regular risk assessments
and face-to-face communication, and clearly define the department responsible for receiving and vulnerability scans, formulates and promotes the implementation of protective measures. It ensures the stable operation of infor-
complaints. mation systems and end-to-end data security. It advances the security and compliance of digitalization projects. It collaborates with
• Establish a closed-loop process of "Receipt Registration - Responsibility Assignment - Inves- business departments to conduct information security training and awareness campaigns, enhancing employee security awareness.
Customer
Complaint tigation & Analysis - Solution Formulation - Management Approval - Response & Feedback - It implements security technologies such as data encryption and access control. It is responsible for the response, monitoring, and re-
Handling Follow-up & Archiving," requiring an initial feedback within 24 hours and a final resolution report porting of security incidents to ensure data integrity and security.
within 7 working days, with continuous follow-up until customer satisfaction is achieved.
Strategy
Financial Impact Impact on
Risk/Opportunity Type Description
Impact Duration Value Chain
Study
Case
Leakage of sensitive data, such as customer Short-term
Service Quality Improvement Review Meeting Operations
Data Leakage information and navigation data, caused by Revenue
Medium-term
Risk vulnerabilities in ship-shore IT systems or Decrease Downstream
In October 2025, the Company held a service quality improvement review meeting. Chaired by the Operations Depart- Long-term
ment, the meeting was attended by company leaders and heads/key personnel from seven departments, including employee non-compliant operations.
Operational
Operations, Marketing, and Marine Affairs. The meeting reviewed ship operations and customer feedback from the first
Risk
three quarters, identified core issues, formulated measures such as "three-stage information synchronization" and "24- Sharing ship operation data or customer Short-term
Unauthorized
hour customer response," and finalized quantitative goals such as " ≤ 2 COA customer complaints in 2026." This meet- information with third parties without au- Revenue Operations
ing facilitated the transformation of service from "post-incident correction" to "pre-incident prevention," laying a solid Data Usage Medium-term
thorization, violating compliance require- Decrease Downstream
foundation for building an integrated "Ship-Shore-Customer" system and enhancing customer satisfaction. Risk Long-term
ments.
Privacy Com- Failure to respond promptly to customer privacy
Reputation Revenue Operations
plaint and Repu- issues, leading to complaints or negative online Short-term
Risk Decrease Downstream
During the Reporting Period tational Risk dissemination, affecting brand reputation.
customer satisfaction for the customer satisfaction for A total of
Digital Compli- Standardized upgrades to ship-shore data Cost In-
Company was its subsidiary XT-IMC was
Opportunity ment Opportu-
nity
governance and privacy protection capabil-
ities, thereby increasing customer trust.
Revenue
Increase
Long-term Downstream
Xingtong Shipping Co., Ltd.
Response Strategy Specific Measures
Study
Case
• Highly sensitive core data (financial data, AI large model-related data) is deployed locally on-premise, Account Compromise Attack and Defense Drill to Strengthen Data Security Protection Capabilities
ensuring data does not leave the corporate intranet.
In December 2025, the Company's Digitalization Department, in collaboration with the Business Department, conducted
Deployment Architec-
• Business operational systems requiring global access (e.g., ship management systems, SRM) rely on
a data network security attack and defense drill. The drill simulated a scenario where an employee's account was compro-
public cloud infrastructure, leveraging its cloud-native security capabilities such as DDoS protection,
ture and Data Storage mised, and an attacker gained unauthorized access, exported, and tampered with core business data. The Red Team logged
Web Application Firewall (WAF), and end-to-end encryption to strengthen protection.
into the system via an unusual IP address, performed batch queries and export of data such as voyages and customers, and
• Build a core data platform to achieve unified management of master data, eliminate data silos, and carried out add, delete, and modify operations. The Blue Team detected alerts in real-time, such as abnormal CPU usage
fundamentally prevent security risks caused by data disorder. and irregular operational behaviors, quickly disabled the account, reset the password, traced the data, and successfully
restored 120 abnormal records from the backup database. This drill validated the effectiveness of the existing defense and
• Sensitive data is encrypted during both transmission and storage. Sensitive fields such as customer emergency response mechanisms, identified areas for improvement such as API access control and password security, and
information and quotes are desensitized on system interfaces and in non-production environments. enhanced practical response capabilities.
• The data platform automatically desensitizes sensitive content such as customer/shipper information
and crew personal information during data cleansing for the operations visualization platform, pre-
Privacy Protection
venting privacy leaks.
(Encryption/Desensiti-
• Limit the scope of user modifications to critical data. Enable audit log functionality for important busi-
zation/Tamper-Proof)
ness documents, completely recording the operator, time, and change details to support traceability
Impact, Risk, and Opportunity Management
and compliance reviews.
• The SRM system covers the full digital closed-loop process of "Ship Application - Shore Approval - SRM
Order Placement - Contract Signing," ensuring data flow cannot be manually tampered with.
Management Specific Measures
• Leverage the data platform architecture to implement unified Identity and Access Management (IAM) for all in- Stage
tegrated systems (ship management, risk management, SRM, etc.), providing unified authentication and access
control with a single entry point for centralized management of business access. • Cover security risks in areas such as ship-shore IT/OT system assets, network communications, data security, and
Access and
• Implement the Role-Based Access Control (RBAC) mechanism, assigning data permissions based on job responsi- the physical environment.
Permission Control
bilities. Support field-level permission settings to restrict the visibility of sensitive fields for specific roles. • Establish the IT/OT System and Software Asset Inventory, conducting a comprehensive review at least once a year.
• Strictly enforce the principle of least privilege, regularly review and adjust permission configurations to ensure us- • Collect risk information through channels such as vulnerability scans, employee reports, and industry threat intelli-
ers only have access to data necessary for their duties, preventing permission abuse. gence.
Identification • Individually identify risks related to Critical Information Infrastructure (CII), conducting an assessment and filing at
• Deploy firewalls, Web Application Firewalls (WAF), host protection software, Intrusion Detection/Pre- least once a year.
vention Systems (IDS/IPS), anti-malware, and other devices. Regularly upgrade and maintain these
Network and System
systems to monitor and block security threats such as network attacks and abnormal behaviors. • Use a combination of qualitative and quantitative methods, determining the risk level through a struc-
Security Protection
• Monitor system security vulnerabilities, regularly check for and promptly patch known vulnerabilities tured process of "Asset Value Assessment → Threat Identification → Vulnerability Analysis".
in core systems, and strengthen vulnerability management. • Conduct a company-level risk assessment at least once a year, triggering special assessments for major
changes such as new system launches or business process adjustments.
• Formulate emergency plans for security incidents such as data breaches, including the Business Con- Assessment • Categorize risk levels based on the likelihood of occurrence and potential impact (e.g., navigation safe-
tinuity Plan, clarifying response procedures, responsibilities, and reporting mechanisms. ty, financial loss, non-compliance).
Emergency Response
• Perform regular data backups and conduct disaster recovery drills to ensure business continuity.
and Disaster Recovery
• Regularly test critical hardware equipment and conduct routine security inspections to eliminate • Technical Monitoring: Monitor network traffic and system activity using tools like SIEM, IDS/IPS. Retain logs for criti-
safety risks at the physical and configuration levels. cal systems for at least 180 days. Deploy anti-virus software with virus signatures updated automatically daily.
• Manual Inspection: The Ship Cyber Security Officer conduct onboard security checks monthly using the SCSO
• Outsourced service providers must sign Non-Disclosure Agreements (NDAs) clearly defining their con- Monthly Inspection Checklist, recording results and reporting them.
Third-Party Security
fidentiality obligations and responsibilities.
Management Detection • External Tracking: Monitor updates to maritime regulations, industry security standards, and network threat
• Third-party platforms/systems must pass a data security assessment before integration. intelligence.
• Regularly organize company-wide data security and privacy protection training, using online courses, knowledge
• Organizational Responsibility: Clarify the hierarchical responsibility structure of "General Manager
bases, and case studies to enhance employee security awareness, and incorporate this into the assessment mech-
→ Company Cyber Security Manager (CCSM) → Captain → Ship Cybersecurity Officer," ensuring ac-
anism.
countability is assigned to individuals.
• Establish a regular security knowledge sharing mechanism, using channels such as the corporate intranet, email
• Countermeasures: High-level risks are addressed immediately. The installation rate for high-risk patch-
newsletters, and instant messaging groups to periodically push content like cybersecurity tips, data breach
Personnel and Compli- es on IT systems must be ≥ 98% within 15 days of release. Patches for OT systems require vendor certi-
post-mortems, and ransomware prevention guides, enhancing employees' sensitivity to and ability to respond to
ance Assurance fication and captain approval. Configure redundant backups for critical systems. Encrypt sensitive data
new threats.
during transmission and storage.
• R&D and operations processes follow security management standards. Platforms have built-in audit Response
and Recovery • Emergency Response: Classify incidents into high, medium, and low levels based on their impact. Develop special-
logs and compliance reporting tools to meet the requirements of regulations and standards such as
ized plans defining response procedures and conduct at least one emergency drill annually.
GDPR and ISO/IEC 27001.
• ontinuous Improvement: Conduct at least one internal audit and management review annually, updat-
C
• Users sign privacy statements and agreements clearly defining the boundaries of data usage.
ing system documents and protective measures based on assessment results.
Xingtong Shipping Co., Ltd.
Indicators and Goals Supply Chain Security
Xingtong Shipping places high importance on supply chain security. It has formulated systems such as the Supplier Management
System and Procurement Business Management System , defining overall requirements for suppliers, standardizing management
Midium-term Goals processes for supplier selection and evaluation, and procurement procedures for key materials like fuel oil, ship supplies, and repair
(1-3 Years) parts, thereby fostering a safe and sustainable supply chain.
Conduct in-depth risk as-
Short-term Goals sessments and vulnerability Long-term Goals
(0-1 Year) Achieved (3-5 Years)
management, improve access
Establish a basic information se- controls for various business sys- Establish a comprehensive informa- Supplier Management
curity management system frame- tems, strengthen employee tion security governance system,
work, complete the formulation security awareness training, ensuring that information securi- The Company has established standardized control processes for supplier development, evaluation, and assessment. Combined
of core policies and infrastructure and achieve proceduraliza- ty management can support the with the digital SRM platform, it has achieved full-process management.
security assessments, and ensure
tion and institutionalization Company's business develop-
the security protection of the
of information security.
Company's critical systems and ment needs and achieve continu-
data. Adopt a hybrid construction ous system improvement. Supplier Screening
approach, introduce third-party
data security mechanisms (soft- • Select high-quality suppliers that meet the Company's needs based on factors such as qualifications, indus-
ware/hardware), and integrate try recognition, and management experience, controlling ESG risks in the supply chain at the source.
them with the Company's self-de-
d ium-term Goa ls
• Leverage the digital SRM platform to integrate supplier credit information and industry databases, automati-
veloped projects to build data Me cally verifying the authenticity of qualifications to aid in selecting quality partners.
backup, disaster recovery, and s
other capabilities. al
Lo
Go
n
Supplier Admission
rm
g-
ter
t-te
Goals • Establish detailed evaluation indicators based on factors such as market, industry, products, and services
m
Sh or
Goals
involved, including supplier qualification status, service capabilities, and product pricing.
• Require suppliers to provide qualification certification documents for quality, safety, environmental protec-
tion, labor rights, special operation permits, etc. These are submitted online through the SRM platform and
undergo a review process to standardize admission.
During the Reporting Period
Supplier Classification
the number of data security incidents
and customer privacy breaches was • Based on comprehensive evaluation results, key material suppliers are classified into three tiers: Class A (Core), Class B
(General), and Class C (Emergency). Higher-tier suppliers are prioritized for procurement cooperation.
•
viding data support for subsequent precise procurement and resource allocation.
Supplier Assessment
• Conduct annual evaluations of all used suppliers, assessing their performance in areas such as product/ser-
vice quality, health and safety, environmental management system performance, certification, and imple-
mentation.
• Use the SRM platform to automatically collect dynamic data such as on-time delivery rate, product qualifica-
tion rate, and after-sales service response speed, generating visual performance reports for objective quan-
titative evaluation.
• Adjust the supplier tiers based on the evaluation results, triggering warnings or initiating elimination pro-
cesses for underperforming suppliers, and promptly update the list of approved suppliers.
Xingtong Shipping Co., Ltd.
Sustainable Procurement Employment and Employee Rights
The Company closely monitors suppliers' ESG performance across various aspects, incorporating ESG requirements into supplier
management processes. Through strengthening green procurement and ethical procurement, it collaborates with supplier partners
Adhering to a "people-oriented" philosophy, Xingtong Shipping has built a full-cycle and multi-dimensional employee rights pro-
to jointly promote sustainable development of the supply chain. The Company treats small and medium-sized enterprises (SMEs)
tection system. By standardizing recruitment and employment, practicing diversity, equity, and inclusion, improving democratic
equally, with no overdue outstanding payments owed to SMEs.
management and communication mechanisms, strengthening the compensation and benefits system, and enriching employee
activities and care, the Company comprehensively safeguards employees' legitimate rights and interests. With systems as the foun-
• An ESG evaluation module is embedded in the SRM platform, linking suppliers' com- dation and care as the support, it fosters a fair, harmonious, warm, and supportive workplace environment, helping employees and
pliance performance in areas such as environmental protection, labor rights, and an- the Company grow together.
ti-corruption to prevent supply chain compliance risks.
• For international ship management and shipping labor services, the Company re-
Supplier ESG quires suppliers to provide relevant qualification certification documents, such as la- Recruitment and Employment
Management bor rights and special operation permits, to ensure their compliance in terms of labor
rights, occupational health and safety, and welfare protection. Xingtong Shipping strictly complies with laws and regulations such as the Labor Law of the People's Republic of China, the Labor
• Conduct ESG promotion and support activities for suppliers, including minimizing Contract Law of the People's Republic of China, and the Law of the People's Republic of China on Promotion of Employment. It has
product packaging, reusing packaging materials, and recycling packaging as much as formulated multiple systems, including the Recruitment Management Regulations, Employee Handbook, Recruitment and Alloca-
possible after products are delivered to ships. tion Management System, and Shore-based Employee Resignation Management System, to comprehensively standardize the entire
process of employee recruitment, onboarding, and offboarding.
Talent Philosophy
• In line with the green procurement requirements, the SRM platform prioritizes sup-
pliers with compliance qualifications such as environmental certifications and asbes-
tos-free test reports. Products with ecological protection notations (G-ECO), such as
environmentally certified chemical cleaning agents and oil spill dispersants for ships,
are used whenever possible.
Green • Require suppliers to declare whether materials contain hazardous substances. For
Procurement packaging containing hazardous substances, the correct technical names must be
marked, and labels affixed.
• Prohibit the use of spare parts or materials containing asbestos on ships and refrain
from purchasing such items. For high-risk products that may contain asbestos, suppli- Loyalty and Integrity: Selflessness and Responsibility and Humility and
ers are required to provide asbestos-free test reports issued by testing bodies recog- The Rudder Gratitude: The Anchor Dedication: The Sail Ambition: The Oar
nized or accepted by classification societies.
• The Company continuously strengthens integrity management in the supply chain,
Ethical requiring the signing of Integrity Cooperation Agreements with suppliers or incorpo-
During the Reporting Period
Procurement rating integrity clauses in relevant contracts. These strictly define the ethical stand-
ards for both parties, jointly maintaining a healthy and fair business environment. the Company had a total of with The total number of with
in-house crew members was
shore-based employees new hires new recruits
During the Reporting Period
the Company achieved and a
ESG review coverage for its suppliers
signing rate of integrity agreements with core suppliers.
Xingtong Shipping Co., Ltd.
Anti-Child Labor and Forced Labor
Study
Case
Empowering Women in the Workplace to Radiate Confident Brilliance
The Company strictly adheres to the bottom line of employment compliance and resolutely prohibits child labor and forced labor.
For shore-based recruitment, a full-process age verification mechanism has been established, with rigorous checks from resume
In March 2025, the Company organized a Women's Day event for all its female employees under the theme "Charting
screening to pre-employment medical examinations, ensuring no child labor is hired. Simultaneously, the Company resolutely op-
a New Course in the Workplace, Our Confident Journey Illuminated." By combining school-enterprise collaboration,
poses all forms of forced labor, safeguarding all employees' legal rights to voluntary employment and free movement. It strictly pro-
cultural immersion, and physical and mental wellness activities, the event demonstrated the Company's deep care
hibits violations such as withholding identity documents, compulsory overtime, and restricting personal freedom, actively building
and high expectations for its female employees.
a transparent and law-based employment environment.
Providing Employment Opportunities
Guided by its talent development strategy, the Company promotes the construction of its shore-based and crew teams in a cate-
gorized manner. For crew recruitment, precise hiring needs are determined based on fleet development plans, and diverse talent
acquisition channels are established. The Company also maintains dynamic connections with universities, human resources and
social security bureaus, and disabled persons' federations, actively conducting recruitment initiatives for individuals with disabili-
ties to inject diverse vitality into the Company's talent development.
Women's Day Event
Campus Recruitment at Job Fair at Jimei University Established "Education and Practice
Quanzhou Ocean Institute Base" with the MPAcc Education
Center of Huaqiao University
Diversity, Equity, and Inclusion Democratic Management
Xingtong Shipping adheres to the principle of equal employment. Guided by the Shore-based Recruitment Management System, Xingtong Shipping has established a sound democratic management mechanism centered on the Trade Union and the Staff Rep-
it standardizes recruitment procedures and clearly stipulates that employment barriers or discrimination, whether based on eth- resentative Assembly. It has formulated the Trade Union Constitution and the Staff Representative Assembly System, clearly safe-
nicity, race, gender, religious belief, household registration, or other factors, are prohibited, effectively safeguarding the legitimate guarding employees' rights to be informed, to participate, to express their views, and to supervise. This promotes the institution-
rights and interests of every worker. Concurrently, the Company actively cultivates an inclusive and diverse corporate culture. It alization, standardization, and scientific advancement of corporate democratic management. Concurrently, it has established and
promotes its core values through multiple channels, such as the internal publication Xingtong · Seaway, bulletin boards, and the improved a multi-faceted guarantee mechanism, fully implementing the requirements of democratic management through meas-
Company's official website, advocating mutual respect, understanding, and collaboration among employees. This ensures that em- ures such as equal consultation, regular communication, acceptance of supervision, and satisfaction surveys.
ployees from diverse backgrounds and with different personalities feel cared for and respected, effectively enhancing their sense of
belonging and identification.
Equal Consultation System Regular Communication Channels
Protection of Female Employees' Rights and Interests
Leveraging the Trade Union organization, the Company Regular communication is conducted through diverse
implements the equal consultation system for collective forms such as one-on-one interviews, employee rep-
Xingtong Shipping has formulated the Labor Protection System for Female Employees and established the Female Employees' contracts, establishes channels for labor dispute mediation resentative forums, departmental gatherings, and tea
Committee. On one hand, it guides female employees to embrace the spirit of "self-respect, self-confidence, self-reliance, and and labor protection supervision and inspection, and sets parties, establishing regular communication channels
up a liaison system for union member representatives. This and a closed-loop feedback mechanism.
self-improvement," organizing their participation in democratic management, cultural and sports activities, and specialized train-
comprehensively safeguards employees' rights and inter-
ing to enhance their capabilities and encourage excellence in their roles. On the other hand, it effectively safeguards the legitimate
ests and broadens the pathways for consultation.
rights, interests, and special protections of female employees in political, economic, cultural, and other aspects, promoting the im-
Talent
plementation of special collective contracts, equal pay negotiations, insurance coverage, and assistance for those facing difficulties.
Philosophy
The Company strictly adheres to the Quangang District Special Collective Contract for the Protection of Female Employees' Rights
Acceptance of Employee Supervision Employee Satisfaction Survey
and Interests, which clearly stipulates that female employees' salaries shall not be reduced, nor shall they be dismissed, due to
pregnancy, childbirth, or breastfeeding. Labor contracts that expire during pregnancy, maternity leave, or lactation are automatical- A mechanism for regular and targeted information dis- Satisfaction surveys are integrated into the regular
ly extended. Regarding leave entitlements, in addition to statutory leaves such as marriage leave, maternity leave, prenatal check- closure has been established, proactively disclosing hot employee interview system, in conjunction with the-
up leave, and breastfeeding leave, the Company also provides menstrual health leave and a flexible leave allowing a 30-minute topics, focal points of employee concern, and difficult matic interviews to capture the demands and opin-
delay in reporting to work for school drop-off/pick-up. These measures accommodate both the work and family needs of female issues in operations management, thereby accepting ions of employees.
supervision from all employees.
employees, providing comprehensive support for their career development.
Xingtong Shipping Co., Ltd.
During the Reporting Period Compensation and Performance
the proportion of Trade Union members among the Compa- The satisfaction rate of shore-based
With legal compliance and performance orientation as its core principles, Xingtong Shipping deeply links employee income with
ny's active employees was employees was
corporate performance through a comprehensive compensation management system and a scientific performance management
that of Xingtong Shipping's in-house crew and that of XT-IMC's in-house crew Compensation Management
members was members was
Following the Labor Law of the People's Republic of China and consid-
Five Compensation Principles
ering the Company's actual circumstances, it has formulated regula-
System and the Crew Compensation Management System , establishing
a scientific, reasonable, fair, and competitive compensation system.
This helps attract, retain, and motivate talent, ensuring the enhance-
ment of core competitiveness and the achievement of strategic goals. Principle of
Legal and Remuneration
Study
Case
The Company adopts a hybrid compensation strategy, implementing Compliant Competitiveness Based on Position
Building a Two-Way Communication Bridge, Empowering New Talent Growth differentiated plans for different job levels and positions based on
the two dimensions of compensation level and compensation struc-
The Company has always regarded talent as the core driver of sustainable development. In August 2025, the Company ture. For core positions, a leading strategy is implemented, offering
Performance- Dynamic
successfully held its annual New Employee Forum, aimed at breaking down communication barriers between gener- compensation standards above the industry average to match high
Oriented Adjustment
ations and accelerating talent integration. The event invited department heads and outstanding employee represent- job requirements. Crew compensation is benchmarked against mar-
atives to engage in face-to-face, direct communication with new employees. By systematically sharing the Company's ket levels, with the Crew Department leading a multi-departmental
cultural context, business architecture logic, and clear career development paths, the event helped new talent quickly collective evaluation mechanism held every six months, allowing
build corporate awareness and identity. compensation to dynamically adjust with labor market prices.
The forum served not only as a platform for cultural communication but also as a window for gathering opinions. We
encouraged new employees to speak freely on practical issues such as workflow connections and team collaboration
efficiency, raising questions and offering suggestions for improvement. This forum effectively built an efficient and Compensation
transparent communication bridge. It not only significantly enhanced new employees' sense of belonging and co-
hesion but also enabled the Company to precisely identify areas for improvement in system optimization and talent
services, laying a solid foundation for building a more dynamic team ecosystem.
Fixed Salary Variable Pay
Position-based Monthly Perfor- Annual Special Allowances, Employee Stock
Basic Salary Subsidies, Ownership Plan
Salary mance Bonus Bonus Award and Benefits (ESOP)
Remuneration Structure
Performance Assessment and Appeal
Xingtong Shipping has built a strategy-oriented performance management system. It has formulated the Shore-based Performance
Management System and utilizes tools such as the Balanced Scorecard and Key Performance Indicators (KPIs) to establish an eval-
uation system focusing on departmental performance. Departmental performance bonuses are linked to the Company's operating
results, creating a mechanism that ties employee compensation to corporate performance.
Performance assessments are primarily conducted on a monthly cycle. Employees complete self-evaluations for the previous
month and formulate plans for the current month at the beginning of each month. These are evaluated step by step by department
heads and senior managers, with scores directly linked to monthly performance pay. Simultaneously, the Company has formulated
an annual comprehensive evaluation plan that integrates monthly performance, year-end performance, and 360-degree feedback
to comprehensively assess employees' value contribution and growth.
Regarding performance feedback and appeals, the Company integrates two-way communication throughout the entire assessment
process. The Human Resources Department urges department managers to conduct performance feedback sessions quarterly,
New Employee Forum providing employees with assessment results and the rationale behind them, jointly analyzing shortcomings, and formulating im-
provement plans. If employees have questions about their assessment results, they can communicate and provide feedback on the
spot. The system also clearly defines an appeal mechanism to ensure employees' concerns are objectively addressed, promoting
continuous optimization of performance management through closed-loop communication.
Xingtong Shipping Co., Ltd.
Benefits and Care Leave Management
Xingtong Shipping has established a standardized and humanized working hours and leave management system. While ensuring
Xingtong Shipping is deeply committed to employee well-being, providing comprehensive benefits, implementing a reasonable orderly company operations, it fully respects employees' rights to rest and helps them achieve work-life balance through diversified
leave system, optimizing work and living facilities, and building team vitality through a series of enriching activities. It conveys flexible arrangements.
warmth through details such as birthday greetings and family-friendly initiatives, enabling every employee to feel a sense of be-
Flexible Attendance for Scientific Management
longing while striving, thus achieving mutual growth and shared success between the Company and its employees. Shore-based Employees of Crew Working Hours
Employee Benefits
The Shore-based Employee Attendance Management Regulations on preventing crew fatigue are followed,
System has been formulated, clarifying attendance and work and rest hour logs are maintained, ensuring
The Company advocates a cultural atmosphere of "healthy life, happy work." By formulating normative documents such as the regulations and leave entitlements, and establishing crew members receive adequate rest through a sys-
a user-friendly check-in system. tematic management mechanism.
Shore-based Employee Welfare Management System and the Crew Welfare System, it has built a comprehensive welfare system
covering all employees, satisfying their needs from multiple dimensions and enhancing their sense of belonging and well-being. Leave and Working Hours Management
Employee Activities
Statutory Benefits Corporate Benefits Focusing on employees' spiritual and cultural needs, Xingtong Shipping uses diverse cultural and sports activities as a vehicle to
continuously build platforms for communication, physical fitness, and self-expression. While enhancing physical health and allevi-
In strict accordance with national policies As a supplement to statutory benefits, ating work stress, these activities effectively strengthen team cohesion and unity, creating a positive, harmonious, and vibrant cor-
and relevant company regulations, statutory corporate benefits enrich the dimen- porate culture.
benefits include social insurance, housing sions of welfare protection, specifically
provident fund, paid annual leave, marriage including accidental injury insurance,
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leave, bereavement leave, prenatal check- employee health check-ups, travel
up leave, maternity leave, paternity leave, leave, seniority allowance, phone bill Promoting Shipping Spirit, Contributing to Maritime Power
breastfeeding time, medical treatment peri- allowance, and special benefits.
od, and other statutory protections. In June 2025, in accordance with the requirements of the Notice of the Maritime Safety Administration of the People's Repub-
lic of China on Dressing Ships Overall in Celebration of the 'Day of the Seafarer', our fleet celebrated the "Day of the Seafarer"
solemnly and enthusiastically by dressing ships overall and sounding their whistles for one minute. In response to the theme
initiative of the IMO's Day of the Seafarer in 2025, "My Harassment-Free Ship," and to foster a maritime culture of respect, in-
Trade Union Benefits
clusion, and zero tolerance for bullying and harassment, the Company,
As a valuable supplement to corporate benefits, Trade Union benefits focus on humanistic care, covering team building, under the guidance of the Xiamen Maritime Safety Administration and
annual trips, birthday gifts, holiday greetings, Women's Day greetings, wedding gifts, hospitalization visits, assistance for in collaboration with the Navigation College of Jimei University, organ-
employees in difficulty, condolence visits, education scholarships, and daily benefits. ized a one-day "Xingtong Cup" series of activities to jointly celebrate
the 15th Day of the Seafarer. The activities aimed to promote maritime
culture and create a safe and harmonious seafaring atmosphere, fo-
cusing on cultivating a new generation of seafarers equipped with both
Study professional skills and humanistic care, thereby providing well-round-
Nurturing the Dreams of Employees' Children, Conveying Corporate Warmth Case ed maritime talent for the national "Belt and Road" Initiative.
Day of the Seafarer Event
In August 2025, Xingtong Shipping held its 2025 Employee Children's Education Award Ceremony to commend employ-
ees whose children were admitted to undergraduate or higher-level institutions, demonstrating the Company's commit-
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ment to being a strong support for its employees and supporting the educational growth of the next generation.
Enriching Cultural and Sports Life, Enhancing Team Cohesion
In June and November 2025, the Company successively held a series of cultural and sports events, including the "Xingtong
Cup" Badminton Tournament and the Health Run. These events enriched employees' off-duty life, effectively stimulated
their enthusiasm for sports, and helped improve their physical fitness. They also served as cross-departmental communica-
tion platforms, enhancing collaboration and friendship among employees, demonstrating the Company's commitment to
and care for their physical and mental well-being.
Employee Children's Education Award Ceremony
"Xingtong Cup" Badminton Tournament and Health Run
Xingtong Shipping Co., Ltd.
Employee Training and Development During the Reporting Period
Periodthe Company invested RMB 116,200 in training for shore-based employees and RMB
Xingtong Shipping upholds the talent philosophy of "empowering our people to excel, and attracting outstanding talent to Xingtong,"
placing high importance on employee growth and development. By building quality development platforms and leveraging diverse 727,000 for in-house crew members. The training coverage rate for both shore-based employees
mechanisms such as training and promotion, the Company stimulates employee potential, assists them in enhancing their capabilities
and achieving self-improvement, and cultivates employees with the spirit of "unity, striving, pioneering, and dedication." and in-house crew members was 100% The total training hours for shore-based employees were
Employee Training 3,926.33 hours, with an average of 24.09 hours per person. The total training hours for
Guided by the talent strategic goal of "building a first-class shipping team with professional spirit and specialized capabilities that
helps continual strategic improvement," and in accordance with the SQMS Personnel Training Procedures, the Company focuses in-house crew members were 64,615 hours, with an average of 98.05 hours per person.
on the core safety operation requirements of the hazardous chemicals shipping industry. It has built a full-cycle, categorized, and
closed-loop employee training system. Through systematic development and digital empowerment, it comprehensively enhances
the professional competence of its personnel, solidifying the talent foundation for the Company's high-quality development.
Employee Development
"Triple Integration" Training Mechanism Full-Career Cycle Training Conten Based on the Measures for Administration of Shore-Based Employee Job Grades and Development Paths, Xingtong Shipping has
• Integrate national and local policies/regulations, IMO • Run through all stages of employee career development, built a dual-track employee development system combining "vertical promotion + horizontal mobility," laying out clear growth
conventions/rules, and industry technical standards. covering new employee orientation, on-the-job improve- paths for different types of talent. The Company has established two main vertical tracks: management and professional, covering
• Integrate diversified modes such as theoretical lec- ment, job transfer adaptation, and knowledge updates. various job levels such as general management, technical management, business, technical, and functional roles. Simultaneously,
tures, practical drills, case studies, and online learning. • Content is divided into over ten categories, including sys- it offers cross-track horizontal mobility channels supported by a standardized probationary assessment mechanism. By clarifying
• Integrate the characteristics of different roles, such as tem training, job skills training, new equipment training, promotion standards step by step, prioritizing performance, and outlining pathways for fast-track promotions, it ensures develop-
crew members, shore-based management personnel, regulatory training, emergency response training, safety
ment fairness through standardized evaluation processes, comprehensively empowering employees' professional growth.
and functional department staff, to develop catego- awareness training, and accident investigation training.
rized and tiered training programs. • The Company integrates ship and shore-based emergen- The Company places high importance on employees' continuous learning and long-term development. In addition to on-the-job
cy management training with management leadership training, it provides comprehensive support in two areas: advanced education and professional qualification certification. This
development to enhance decision-making, execution, helps employees enhance their professional capabilities while linking such development outcomes to job placement and promo-
and cross-departmental coordination capabilities.
tion, forming a virtuous cycle of growth.
Company's Employee Training System
Through simulated emergencies and command drills, it
Phased Training Plan strengthens management's response capabilities while
• Formulate training system development plans for the promoting the implementation of a safety culture across
all employees.
short-term (1-2 years), medium-term (3-5 years), and Employee Development Support Measures
long-term (5+ years), simultaneously advancing the
establishment of a talent pool and the creation of a Full-Process Training Assessment and Evaluation
learning organization culture. • Implement an annual training plan management and estab- • Formulate and implement policies encouraging employees to pursue higher education,
lish a strict assessment and evaluation mechanism. Internal Academic supporting eligible manager-level personnel to apply for the Master of Business Adminis-
Education Support tration (MBA) program at Dalian Maritime University. Substantial tuition reimbursement
training uses instructor-set assessments combined with
satisfaction surveys in the shipping knowledge base. External is provided according to policy for admitted employees.
Integrated Online and Offline Training Formats training is evaluated through questionnaires. Those who do
• Internal Trainer Team Development: Select manage- not meet the standards are scheduled for make-up exams or
rial-level personnel and key business professionals to supplementary training. • Encourage employees to obtain job-related domestic and international authoritative
form an internal trainer team, honing their teaching professional qualifications, providing subsidies or reimbursement for training and exam-
skills through scenarios such as intra-departmental • Management regularly reviews training quality and contin-
ination fees according to relevant regulations. Holders of such certifications receive addi-
sharing and cross-departmental instruction, enabling uously optimizes training content and methods based on Professional Qual- tional consideration for job placement and promotion.
internal knowledge consolidation and transfer. feedback. ification Certifica-
• For key certifications closely related to work, such as Work Safety and Management Abili-
• Digital Learning Platform Empowerment: Leverag- tion Support ty Certificates, Company Auditor (ISM), Company Security Officer (CSO), Marine Engineer
ing the "Xing Academy" online learning platform to Certificate of Competency, Designated Person Ashore (DPA), and Seafarer Certificates, the
achieve full-process digital management, including Company provides full-process support, including covering training costs and organizing
training needs analysis, plan formulation, course de- training and examinations through professional institutions.
livery, and assessment evaluation.
Xingtong Shipping Co., Ltd.
Work Safety Management Measures
Occupational Health and Safety
• The Company has formulated the Instructions for Preventing Crew Fatigue , integrating work-rest management into daily safety
control. Through scheduling and process monitoring, it prevents overtime work and implements risk control and compensa-
Adhering to the creed that "safety is the lifeline, to be managed strictly, practically, and meticulously," Xingtong Shipping regards occupa- tory rest mechanisms for special conditions such as drills and emergencies. Ships' department heads prepare and dynamically
tional health and safety as the management baseline and core requirement for ensuring the safe and stable operation of hazardous chemi- update the in-port and navigation schedules, which are implemented and posted after approval by the captain. Concurrently, a
work-rest time management system is used to record and verify work and rest data. If deviations or fatigue risks are identified,
cals transportation. Leveraging systematic management and ship-shore coordination mechanisms, the Company continuously strengthens
Fatigue the causes are promptly analyzed, and corrective and preventive actions are taken. In cases of frequent deviations, the captain
risk prevention, hazard identification and rectification, and emergency response capabilities, safeguarding employee health and operational
Prevention may, based on risk assessment, adjust shifts, delay departure, anchor for rest, or request additional personnel, reporting to the
safety.
Company for coordination and support as needed, thereby reducing the risk of accidents caused by fatigue.
• The Company has formulated the Ship Fire Safety Code and established and implemented ship fire safety manage-
Governance
ment requirements, focusing on fire and explosion prevention through "strict control of ignition sources and isolation
of combustible environments." It strictly restricts ignition sources in flammable gas areas, prohibits carrying any igni-
tion source onboard, and standardizes smoking management in designated areas.
Xingtong Shipping has established the Safety and Environmental Protection Committee under the Board of Directors, with the General Man- • For key areas such as the galley, paint/hazardous material storage rooms, measures are implemented, including ex-
ager as the primary person responsible for work safety, overseeing safety objectives and key tasks. The Company's management is responsi- plosion-proof lighting, ventilation, compliant storage of materials, regular inspection and maintenance of facilities
ble for formulating safety objectives and measures and ensuring their achievement. The Marine Department and the Engine Department are and equipment, and firefighting training. During operations, adequate ventilation is required, oxygen and combus-
responsible for managing and implementing safety indicators and continuously improving the safety capabilities of all employees. tible gas concentrations are continuously monitored, and explosion-proof lighting is used. Operations cease immedi-
Fire Safety
ately if conditions are not met and are suspended during fire risk situations such as lightning.
Management
Based on international and professional management requirements, the Company has established a Safety and Quality Management Sys- • The Company has formulated the Instructions for Hot Work, strictly controlling open flame operations on ships.
tem (SQMS) tailored to its characteristics. By formulating a series of safety management documents, including the Safety Management Man- • Additionally, the Company conducts nighttime fire prevention patrols and electrical usage control, strictly prohibit-
ual, it continuously enhances its refined safety management level. The Company has formulated management systems such as the Work ing unauthorized wiring, use of unapproved electric heating appliances, and use of non-intrinsically safe electronic
Safety Responsibility System . It signs safety responsibility agreements with department heads and ship leaders annually to ensure all per- equipment in work areas, reducing fire hazards.
sonnel strictly implement their primary work safety responsibilities. An assessment, reward, and punishment mechanism has been estab-
lished, evaluating relevant personnel's achievement of goals based on the Work Safety Goal Assessment and Reward-Punishment Measures , • The Company has established and implemented the Shore-Based Safety and Health Management System, covering of-
motivating ship and shore employees to implement the Company's safety protection policy. fices, warehouses, terminals, dormitories, and other facilities, enhancing personnel and operational security capabilities
through systematic management.
• Emergency evacuation diagrams are posted at all shore-based facilities, improving guidance for personnel evacuation
during emergencies.
• The Company implements standardized control over the entry and exit of personnel and vehicles. External vehicles
Strategy Shore-Based are registered, inspected, and required to follow designated routes. Regular patrols are conducted with records kept to
Safety and promptly identify and address abnormal situations.
Health • The Company organizes hazard identification and rectification efforts monthly, establishes ledgers, and ensures closed-
Primary Financial Impact Impact on Management loop rectification, with the Safety and Quality Department conducting follow-up inspections and acceptance.
Risk Type Description
Impact Duration Value Chain • During duty hours, continuous monitoring and incident response are carried out. In the event of a security incident, rap-
id response is initiated according to emergency procedures, with timely reporting to relevant authorities as necessary.
Vessel navigation, berthing/unberthing, and crit-
Core Opera- ical equipment failures, combined with human • Guided by the principle that "safety is the lifeline," the Company strengthens leadership-driven and ship-shore coordinated
Cost Increase, Reve- Short-term
promotion through activities such as the "Work Safety Month," fostering a safety culture atmosphere with full participation.
tional Safety errors caused by crew fatigue, are direct causes Operations
nue Decrease Medium-term The Company designated June 9 as the annual Work Safety Day and released the documentary Safety in Action by Everyone,
Risks of maritime accidents, cargo damage, and oper-
making "safety is the lifeline" a consensus, a habit, and an instinct. Simultaneously, training drills and ship-shore joint exercis-
ational interruptions. es are conducted on topics such as fire and evacuation, rescue and first aid in enclosed spaces, and typhoon preparedness,
enhancing frontline risk identification and emergency response capabilities. Targeted hazard identification and special in-
Safety Culture
spections are organized around key operational aspects, leveraging AI-driven analysis of hazard data to promote rectification
Areas such as the engine room, galley, and Development
closure and management optimization. Complementary incentive mechanisms, including accident case study education,
hazardous materials storage areas on ships may
Fire/ Cost Increase, Reve- online quizzes, and competitions, are used to continuously reinforce safety awareness and behavioral norms.
experience catastrophic fires or explosions due Short-term Operations
Explosion Risk nue Decrease
to improper hot work, electrical faults, or lapses
in chemical management.
Prolonged exposure to high-temperature/noise
Occupational
environments leads to occupational diseases.
Health and Medium-term
Combined with inadequate emergency response Cost Increase, Reve-
Emergency Operations
to incidents (e.g., spills, piracy) and security vul- nue Decrease Long-term
Response Ca-
nerabilities on shore, this endangers employee
pability Risks
health and threatens business continuity.
June 9th Safety Day Navigation Safety Strategic Meeting
Xingtong Shipping Co., Ltd.
Impact, Risk, and Opportunity Management
Occupational Health Management Measures
Xingtong Shipping identifies, assesses, and categorizes occupational health and safety risks. It employs diversified management
Occupational
Health Protection and control mechanisms to manage corresponding risks, minimizing the likelihood of their occurrence.
For potential occupational hazard scenarios such as the use of chemicals in engine rooms and work on high-temperature equip-
ment surfaces, the Company has formulated and implemented management requirements for occupational disease protective
n-
equipment and facilities. Its vessels are equipped with necessary personal protective equipment and chemical protective gear (e.g., de
g r d I and
safety helmets, face shields) as per regulations, along with operation manuals and work instructions. Routine maintenance of pro- din z a
H a ation ion
y
enc ent
G r a rol c t erg
tective facilities is carried out to ensure the effectiveness of protective measures and the safe operation of equipment. k
R i s Cont tifi tifica Em agem
c n
and Re Ma
Occupational Health Occupational The Company classifies safety risks The Company classifies accident In accordance with regulatory requirements such
Examinations Health Promotion
into "risks related to operational hazards into "basic management as the Emergency Response Law of the People's
The Company has established systems such as Through systematic training and multi-chan- activities," "risks related to facilities accident hazards" and "production Republic of China and the Measures for the Admin-
the Occupational Health Management and Oc- nel promotion (bulletin boards, meetings, and equipment," and "risks related site accident hazards", clarifying the istration of Contingency Plans for Work Safety Inci-
cupational Health Management Archives. It regu- training sessions, on-site explanations, warn- to occupational disease hazards," scope, frequency, responsible person- dents , the Company has formulated systems and
larly commissions third parties to conduct work- ing signs, etc.), the Company continuously establishes the List of Risk Sources nel, and process monitoring require- procedures, including the Emergency Response
place occupational hazard factor detection and disseminates laws, regulations, systems, and and the List of Major Risk Sources ments for identification and rectifica- Manual and the Emergency Response Procedures
organizes occupational health examinations for operating procedures for the prevention and covering both ship and shore-based tion. Through diverse methods such for Ships and Shores , building a ship-shore col-
employees exposed to these hazards. The results control of occupational diseases. It focuses operations. We standardize risk as self-inspections, shore-based ship laborative emergency management system. For
are truthfully communicated to the employees, on reinforcing the correct use of protective identification, assessment, and visits, external audits, maritime safety scenarios such as ship operation safety, toxic liquid
and corrective suggestions are implemented. equipment and self-protection awareness, grading criteria, implement differen- inspections, and on-site supervision, leakage, severe weather, and pirate hijacking, the
The Company concurrently standardizes the continuously enhancing employees' ability tiated control measures for risks of hazards are promptly identified and Company has established a standardized mecha-
management of occupational health records, to identify and protect against occupational different levels, and regularly organ- rectified in a closed-loop manner. For nism covering emergency contact, response, and
maintaining "one file per person" to provide a health risks. ize risk reviews and reassessments major hazards, a specialized investiga- on-site handling, ensuring emergencies are con-
basis for the diagnosis and identification of occu- to identify and control major risks at tion and assessment team is formed trollable and manageable. The Company develops
pational diseases, and accepts supervision and the source, continuously strength- to formulate a rectification plan and its annual drill plan on a rolling basis in accordance
inspection by health authorities. Mental Health Care ening our capacity to prevent major organize follow-up evaluations. The with the Five-Year Plan for Ship/Shore Joint Drills,
and catastrophic accidents. case is closed after verification and conducts comprehensive ship/shore joint drills,
The Company cares about employees' mental health. By engaging external professional resources to conduct mental health confirmation by designated person- and continuously evaluates and improves them,
lectures and training, and providing counseling and guidance support, it helps employees enhance their stress management nel, ensuring rectification is thorough ensuring coverage of all emergency scenarios iden-
and psychological adjustment capabilities, jointly creating a healthy and positive work atmosphere. and traceable. tified by the Company within five years.
Opportunity Financial Impact Impact on Work Safety Control Mechanism
Description
Type Impact Duration Value Chain
Deploy technologies such as intelligent
Technological monitoring and early warning systems to Cost Reduction Medium-term
Operations
Enhancement enhance the capability to monitor hazard- Revenue Increase Long-term
ous chemical leaks and risks.
Investment in occupational health and
Enhanced
safety enhances employees’ sense of se- Cost Reduction Long-term Operations
Employee Stability
curity, increasing satisfaction and loyalty.
Crew Mental Health Training Occupational Health Protection Knowledge Training
Xingtong Shipping Co., Ltd.
Indicators and Goals Fostering Community Co-development
The Company constantly builds a strong safety defense around the long-term safety goals of "zero accidents, zero casualties, zero
pollution, zero detentions, and zero cargo losses," formulates the annual work safety management objectives accordingly, and con-
Xingtong Shipping has long supported public welfare, helping to enhance local medical services and protect residents' health
ducts quarterly tracking statistics to ensure the effective implementation of all safety work.
through initiatives such as donating medical equipment. Concurrently, the Company deeply implements rural revitalization by in-
novatively combining employee welfare procurement with agricultural assistance. By directing procurement towards agricultural
increases farmers' incomes and stimulates rural economies, demonstrating the Company's profound commitment and practical
Navigation Safety (Explosion/Collision/ responsibility.
Grounding)
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Engineering Safety (Machinery Damage) 0 Accidents Achieved
Donating Medical Equipment to Enhance Local Medical Services
Fire Safety 0 Fires (Minor or Above) Achieved In July 2025, Xingtong Shipping donated a batch of hemodialysis equipment, including six hemodialysis machines,
four hemodiafiltration machines, and supporting systems, to the Quangang District Hospital in Quanzhou City.
Oil Major Vetting Inspections Average Number of Deficiencies per Ship ≤ 7 Achieved
While completing this charitable act, the Company also secured systematic health support services for its employees
and crew members through a signed cooperation agreement, including green channels, remote medical guidance,
Inspections Annual Pass Rate for Oil Major Vetting Inspections ≥ 96% Achieved and health training from the hospital, forming a sustainable "philanthropy-reward" virtuous cycle.
Zero Detentions in Flag State Control ( FSC) Inspections Achieved
Average Number of Deficiencies per Ship in FSC
Comprehensive Management Achieved
Inspections ≤ 2.8
Work Safety Management Goals
The Administration Department is responsible for organizing pre-employment, in-service, and pre-separation occupational health
examinations according to regulations, ensuring that the actual participation rate of those required to be examined is not less than
exposure to occupational hazards. Personnel with occupational contraindications shall not be assigned to prohibited occupations.
Target Value Achievement
Management Goals
≤ 3 Safety Incidents Achieved
Occupational Health ≤ 3 Work Days Lost Due to Work-related Injuries Achieved
Occupational Health Management Goals Xingtong Shipping Medical Equipment Donation
Xingtong Shipping Co., Ltd.
Collaborating for Industry Progress
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Procuring Locally Sourced Apples to Fulfill Rural Revitalization Responsibility Actively and deeply participating in industry forums and exchange activities is a crucial pathway for Xingtong Shipping to practice
its sustainable development philosophy. This not only reflects the Company's open attitude of proactively integrating into the in-
In December 2025, the Company organically combined employee welfare procurement with agricultural assistance,
dustry ecosystem and jointly creating and sharing development opportunities but also demonstrates its responsibility in identifying
precisely supporting the development of characteristic agriculture in the Aba Tibetan and Qiang Autonomous Prefec-
trends, engaging with cutting-edge developments, and driving overall industry progress through practical action.
ture in Sichuan Province, a key national rural revitalization area. The "high-altitude Tangxin Fuji apples" procured are
a representative product of the region's characteristic fruit and vegetable industry. This initiative not only provided
employees with high-quality, healthy food but also, through consumption assistance, directly participated in the
process of transforming ecological advantages into industrial advantages in the ethnic minority regions. It helped
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consolidate local achievements in poverty alleviation and achieve rural industrial revitalization, resulting in a win-win
Debuting at the 2025 "Silk Road Maritime" Annual Conference, Co-building a New
outcome of "improving employee welfare" and "supporting rural industries."
Green Shipping Ecosystem
In March 2025, the Company made its debut at the "Silk Road Maritime" Annual Conference held in Putian and be-
came a new member of the "Silk Road Maritime" Association. This high-level conference, themed "Innovating Port
and Shipping Supply Chain Models," focused on cutting-edge topics such as "Green Shipping" and released author-
itative industry reports. This marks the Company's
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upgrade from an industry participant to a co-builder of
Volunteer Harvesting Assistance, Multi-faceted Measures Empowering Rural Revitalization the national-level "Belt and Road" shipping ecosystem.
It not only significantly enhances the Company's brand
In 2025, to deepen employee volunteer agricultural assistance practices, the Company organized a series of "Agricul- reputation and strategic position, providing a broad
tural Assistance Harvesting, Warm-hearted Companionship" public welfare activities from November to December. platform for direct communication and cooperation
In November, employee volunteers were organized to assist local farmers in Dehua County, Quanzhou, in the timely with 353 top-tier partners globally, but also demon-
harvest of seasonal fruits, effectively alleviating the labor pressure during the busy harvest season. In December, the strates its commitment and leadership in promoting
activities extended to the Youran Vineyard in Quangang, continuing to deepen the assistance model of "helping by the industry's sustainable development through partic-
harvesting, donating by purchasing." Through volunteers' personal participation in harvesting and on-site purchasing ipation in discussions on green topics.
of agricultural products, these activities alleviated farmers' harvesting pressure while expanding sales channels for ag- 2025 "Silk Road Maritime" Annual Conference
ricultural products. This fully demonstrated the Company's sense of responsibility in serving the grassroots and giving
back to society, achieving an organic unity between volunteer assistance and helping farmers increase their income.
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Deepening Customer Collaboration, Fulfilling Supply Chain Responsibility
In November 2025, the Company was invited to partic-
ipate in the "2026 Organic Chemicals Business Fair and
its key customer, CNPC South China Chemical Marketing
Company. This participation affirmed the customer's high
recognition of the Company as a reliable logistics service
partner. By discussing supply chain optimization with the
customer, the Company aims to integrate its professional,
Dehua Agricultural Assistance Harvesting Quangang Youran Vineyard Agricultural Assistance Harvesting Activity safe, and stable logistics services into the customer's sus-
tainable supply chain system, thereby enhancing supply
chain resilience and helping the chemical industry achieve 2026 Organic Products Fair and
better environmental and social benefits. 2025 Logistics Service Provider Conference
Taking its high-standard governance system as the core lever, Xingtong Shipping coordinately advances
Compliance as the development of five key dimensions: corporate governance, information disclosure, risk management,
business ethics, and Party-building leadership. This has established a new governance framework charac-
terized by clear rights and responsibilities, rigorous control, and the ability to achieve steady and long-term
the Helmsman progress. By perfecting its governance structure to strengthen the development foundation, ensuring mar-
ket transparency through standardized information disclosure, mitigating operational risks via full-process
risk management, adhering to strict business ethics to uphold development bottom lines, and anchoring
the way forward with Party-building leadership, the Company comprehensively consolidates the govern-
Solidifying the Foundation for ance cornerstone for its high-quality and sustainable development.
Sustainable Development
Corporate Governance 81
Transparent Disclosure 84
Risk Control 86
Business Ethics 88
Party-Building Leadership 91
Xingtong Shipping Co., Ltd.
Corporate Governance Strategy
In the field of corporate governance, Xingtong Shipping has identified key opportunities that can be realized by improving its gov-
ernance system, including enhancing governance levels and decision-making efficiency, increasing corporate transparency and
Xingtong Shipping strictly adheres to the regulatory requirements of the capital market, establishing a governance structure with reputation, attracting high-quality investment, and enhancing long-term corporate value. By strengthening the functions of the
the General Meeting of Shareholders as the supreme authority and the Board of Directors as the core decision-making body. Start- Board of Directors and its specialized committees, and improving information disclosure and compliance control mechanisms, the
ing from solidifying its governance foundation, the Company continuously improves the operation mechanism of the General Meet- Company actively seizes the aforementioned opportunities. It optimizes its governance structure and processes, enhances organi-
zational resilience and market trust, thereby creating favorable conditions for its high-quality and sustainable development.
ing of Shareholders, persistently advances the development of Board diversity, independence, and effectiveness, and empowers
General Meeting of Shareholders
the improvement of decision-making quality through scientific governance.
Governance The Company strictly follows the requirements of the Rules Governing the Listing of Stocks on the Shanghai Stock Exchange, the
Articles of Association, the Rules of Procedure for the General Meeting of Shareholders, and other regulations. It convenes and
Xingtong Shipping strictly complies with the requirements of the Company Law of the People's Republic of China, the Securities Law holds the General Meeting of Shareholders in a standardized manner, ensuring the meeting process is legal and compliant, and the
of the People's Republic of China, the Governance Code for Listed Companies, and other laws and regulations. It has established a decision-making procedures are rigorous and transparent. Concurrently, it adopts a hybrid meeting model combining online and
offline participation, effectively safeguarding the rights of all shareholders, especially minority shareholders, to be informed, to par-
governance structure with the General Meeting of Shareholders as the supreme authority, the Board of Directors as the core deci-
ticipate, and to vote, fully embodying the principle of shareholder equality.
sion-making body, and the management as the main executing entity. The Company continuously optimizes its governance mecha-
nisms, strengthening the scientificity of decision-making, the efficiency of execution, and the effectiveness of supervision. It promotes Board of Directors
the modernization of its governance system and capabilities, providing a solid guarantee for high-quality development.
The Company's Board of Directors has set up five specialized committees: the Strategy Committee, the Audit Committee, the Nomi-
nation Committee, the Remuneration and Assessment Committee, and the Safety and Environmental Protection Committee. These
Organizational Structure of Xingtong Shipping Co., Ltd. committees operate in strict accordance with the Articles of Association, the Rules of Procedure for the Board of Directors, and the
respective implementation rules of each committee. Through their professional performance of duties, they empower the Board of
Directors' decision-making and ensure its efficient and standardized operation.
Strategy Committee
General Meeting of Shareholders Board Independence
Audit Committee The Company strictly follows the Measures for the Administration of Independent Directors of Listed Companies, supported
by the Work System of Independent Directors and the Work System for Special Meetings of Independent Directors. It has es-
tablished a robust system to support the performance of independent directors, fully leveraging their supervisory and advi-
Secretary of the Board of Directors Board of Directors Nomination Committee sory roles in corporate governance, thereby effectively enhancing the scientificity and professionalism of the decision-mak-
ing by the Board of Directors.
Remuneration and
Board Diversity
Assessment Committee
President
Safety and Environmental The Company regards Board diversity as a core cornerstone of excellent governance, scientific
Protection Committee decision-making, and sustainable development. It has issued the Statement on Board Diversity,
Vice President promoting a reasonable balance and complementary advantages among Board members in di-
Director / Chief Captain mensions such as professional background, industry experience, gender, and age. This ensures
the Board can lead the Company in stable operations and effectively respond to industry chal-
lenges. The Company explicitly lists diversity as a core consideration in the selection and re-
Operation Ship Manage- International Procurement and Hu-
Finance Center newal of directors. It focuses on identifying candidates with relevant professional backgrounds
Center ment Center Business Center man Resources Center in the chemical supply chain, practical experience, and strong performance capabilities. It regu-
larly reviews the effectiveness of this policy to optimize the Board's composition. Currently, the
Company's Board of Directors has formed a diverse professional structure covering key areas
such as corporate management, finance and accounting, and legal compliance, with deep in-
dustry experience, laying a solid foundation for diversified governance.
tion Department
General Manager's Office / Administra-
Securities Department
Investment Management Department
Digitalization Department
Legal and Risk Control Department
Marketing Department
Operations Department
Marine Department
Engine Department
Safety and Quality Department
Ship Inspection Department
Finance Department
Funding Department
International Business Department
International Operations Department
Safety Supervision Department
Technical Support Department
Purchasing Department
Shipbuilding Management Department
Human Resources Department
Crew Department
Audit Department
Board Effectiveness
Board effectiveness is the core guarantee for the Company to improve its governance
structure, achieve scientific decision-making, and realize sustainable development.
To strengthen the performance effectiveness of the Board and standardize govern-
ance operations, Xingtong Shipping actively conducts effectiveness evaluations of
the Board of Directors. By focusing on key dimensions and conducting independence
self-assessments for independent directors, it systematically verifies the compliance
and effectiveness of Board members' performance. This solidifies the foundation for
Note: The Company abolished the Board of Supervisors in November 2025. the Board to fully play its decision-making, supervisory, and leadership roles, helping
the Company continuously improve its governance level and safeguard the long-term
Xingtong Shipping Co., Ltd.
Compensation Management for Directors and Senior Executives Transparent Disclosure
Xingtong Shipping strictly adheres to regulatory requirements such as the Governance Code for Listed Companies and its Com-
pensation Management System for Directors and Senior Executives. It clearly defines the compensation standards and distribution
rules for directors and senior executives, adhering to the fair principle of "aligning responsibilities, risks, and interests." This effec-
Xingtong Shipping consistently upholds the principle of prioritizing investor interests. It enhances shareholder returns through
tively motivates directors, supervisors, and senior executives to perform their duties and enhances team cohesion, ensuring the
maximization of shareholder interests through a scientific and reasonable compensation system, thus solidifying the foundation for stable dividends and diverse reward mechanisms, safeguards shareholder information rights through standardized disclosure and
the Company's long-term stable development. confidentiality mechanisms, and protects shareholder rights through sound systems and open channels. This comprehensively re-
inforces the foundation of trust, supporting the Company's high-quality development.
Potential risks at the corporate governance level, such as inadequate protection of the legitimate rights and interests of share-
Protection of Investors' Rights and Interests
holders and creditors, or weakened independence of Board supervision, can lead to a decline in market trust and damage to
corporate reputation, negatively impacting the Company's financing cost control and long-term value enhancement.
Adhering to the principles of "openness, fairness, and justice" in the capital market, Xingtong Shipping places a sound governance
Impact, Risk, and Opportunity Management mechanism at its core. By improving the institutional framework, keeping communication channels open, and strengthening com-
pliance management, it effectively safeguards the legitimate rights and interests of all shareholders, especially minority sharehold-
Xingtong Shipping has established a full-process control system for the identification and supervision of corporate governance ers, consolidating the investor trust foundation for the Company's high-quality development.
risks. In the risk identification phase, leveraging the "Three Lines of Defense" mechanism, combined with internal and external reg-
ulatory requirements and industry characteristics, the Company identifies potential governance-level risks such as decision-making
compliance, internal control execution, and information disclosure through processes like regular targeted investigations and coor- Maintain Open Investor
dinated reviews by various business departments.
Improve the Institutional Communication Channels
Regarding the supervision mechanism, the Company has established a dual supervision system of "Board coordination and man- Safeguard System Through diverse channels such as
agement execution," supplemented by regular internal audits. It strictly implements system execution tracking and risk early warn- performance briefings, on-site visits,
The Company has formulated multiple
ing mechanisms. Identified risks are promptly assessed, and countermeasures are formulated. Governance risk management status investor hotlines, and SSE E-Interac-
specialized systems, including the Inves-
tion Platform, the Company builds Strengthen Compliance
is regularly reported to the Board of Directors, ensuring early detection and handling of potential risks, and guaranteeing the stand- tor Relations Management System, the
ardized and efficient operation of the governance system. a long-term communication bridge, Process Control
Rules for Online Voting at the General
promptly addresses investor concerns, The Company strictly fulfills its
Meeting of Shareholders, the Code of
safeguards their right to information, obligations for reviewing related
Conduct for Controlling Shareholders
Indicators and Goals and Actual Controllers, and the Manage-
and enhances their confidence in the
Company's development.
party transactions and disclosing
ment System for Connected Transac- information, implements the avoid-
Xingtong Shipping has established corporate governance-related goals: to continuously improve the governance structure centered tions. These systems cover key aspects ance voting system, and leverages
around the General Meeting of Shareholders, the Board of Directors, and the management, promoting clear boundaries and effi- such as shareholder voting, director the supervisory role of independent
cient synergy between decision-making, execution, and supervision. This ensures that all governance entities perform their duties elections, and related party transactions,
directors. It standardizes external
in compliance with laws and regulations and effectively safeguards the performance of independent directors and the legitimate regulate the behavior of controlling
shareholders, strictly implement the research and reception practices to
rights and interests of minority shareholders. The Company will regularly review key governance performance indicators such as
the operation of the Board of Directors and its specialized committees, the quality of information disclosure, investor communica- mechanism of separate vote-counting ensure fair information disclosure,
tion, and shareholder returns. Combined with internal and external assessment and improvement mechanisms, it will continuously for minority investors and full coverage ensuring that investor rights and
enhance the standardization, transparency, and effectiveness of its governance system. of online voting, and establish a robust interests are effectively protected.
institutional defense line for the protec-
tion of rights and interests.
Corporate Governance Related Indicators Unit 2025
Number of General Meeting of Shareholders Convened Times 4
Meetings of the Board of Directors Convened Times 10 Company's Measures to
Protect Investors' Rights and
Meetings of Audit Committee Convened Times 5 Interests
Meetings of Nomination Committee Convened Times 2
During the Reporting Period,
Meetings of Remuneration and Assessment Committee Convened Times 2
the Company replied to investor's questions in SSE E-Interaction Platform 49 times；the response rate to inves-
Meetings of Strategy Committee Convened Times 3
tor inquiries was ；received investor research visits 18 ；conducted offline roadshows 41 ;
Meetings of Safety and Environmental Protection Committee Convened Times 1
Corporate Governance Related Indicators
performance briefing sessions .
Xingtong Shipping Co., Ltd.
Information Disclosure Risk Control
Centered on safeguarding investors' right to information and maintaining fair market
order, Xingtong Shipping continuously improves its information disclosure and insider
information management systems. The Company has formulated and strictly imple- During the Reporting Period, Guided by the core principle of stable operations, Xingtong Shipping deeply integrates risk management and internal control, em-
ments the Information Disclosure Management System. By standardizing disclosure bedding them throughout the entire chain of corporate operations. This has resulted in the establishment of a full-cycle risk pre-
procedures, refining disclosure standards, and strengthening the review mechanism, it the Company disclosed reports vention and control, as well as an internal control supervision system. Based on industry characteristics and market changes, the
comprehensively improves the quality of information disclosure, ensuring that all dis- Company enhances its risk resilience and internal control execution levels through system improvement, process optimization, and
closed information is true, accurate, complete, fair, and timely, fully meeting investors'
needs for information about the Company's operating status.
Concurrently, the Company places high importance on the confidentiality of undis-
closed information. Strictly following the Insider Information and Confidentiality Man-
Risk Management
agement System, it clearly defines the scope of insider information, the registration
process for insiders, and the mechanism for pursuing confidentiality responsibility. This Xingtong Shipping deeply integrates risk management requirements into all aspects of corporate management and business pro-
helps prevent insider trading risks at the source, effectively safeguarding the legitimate cesses. By strictly following the Risk Management System, it has established and refined the "three lines of defense" for risk man-
rights and interests of all shareholders, especially minority shareholders, and fostering
agement. The Company considers both internal and external influencing factors in its risk assessment. Internally, it identifies the
a favorable market environment for the Company's healthy and stable development.
nature of risks and formulates response strategies. Externally, it solidifies its risk defense in cooperation through measures such as
due diligence on domestic and international customers and suppliers, and KYC (Know Your Customer) reviews. During the Report-
Returns to Shareholders ing Period, the Company conducted risk identification and management activities twice, producing the Legal Risk and Compliance
Risk Management Report, which comprehensively supports the Company's stable operations.
Xingtong Shipping coordinates the dynamic balance between corporate sustainable development and shareholder returns, estab-
lishing a "sustainable, stable, and scientific" dividend policy system. Through diversified return measures such as cash dividends
and share buybacks, the Company creates long-term stable returns for investors, effectively enhancing their tangible returns, and
ensuring that all shareholders, including minority investors, share in the fruits of the Company's development.
First Line Second Line Third Line
During the Reporting Period, in active response to the Shanghai Stock Exchange's Proposal for the Special Action of "Improving of Defense of Defense of Defense
Quality, Increasing Efficiency, and Focusing on Returns" for Companies Listed on the Shanghai Stock Exchange, the Company for-
mulated a special action plan, focusing on core dimensions such as business operations, shareholder returns, cash dividends, share
buybacks, employee stock ownership plans, and green development. This comprehensively promotes the Company's high-quality
development, continuously enhances investor returns, and steadily increases the Company's investment value.
Business Department and Legal and Risk Board Audit Committee
Safety and Quality Department Control Department and Audit Department
Conduct client and supplier audits Legal and Risk Control Department Strengthen the prevention and
Company's Cash Dividend Situation in the Past Three Years and improve the Company's work collaborate with external legal control of risks through a sound
safety system. institutions and establish a compre- internal audit system.
hensive and solid professional legal
and risk management defense line.
Proportion to Net Profit Attrib-
Cash Dividend per Share Total Cash Dividend (Tax
utable to Shareholders of the
(RMB/share) Inclusive) (RMB 10,000)
Listed Company (%) Company's "Three Lines of Defense" for Risk Management
internal risk training internal risk control training was risk control training was
Note: Total cash dividends exclude the amount paid for share repurchases by cash. v
Xingtong Shipping Co., Ltd.
Internal Control Management Business Ethics
Xingtong Shipping places high importance on internal control systems. Strictly following regulations such as the Basic Standard for
Enterprise Internal Control and the Company's Internal Audit System, it has established an internal control management structure
composed of the Audit Committee and the Internal Audit Department, which implements comprehensive supervision and objec- Adhering to the corporate style of being "rigorous, pragmatic, modest, and frugal," Xingtong Shipping consistently upholds integrity
tive evaluation of internal control work. The Company has established a regular internal audit mechanism, conducting audits on
as its core principle, strictly complies with relevant laws and regulations, and empowers compliance management through ethical
monetary funds, raised funds, and key business processes across all categories on a quarterly, semi-annual, and annual basis. It
also engages third-party institutions to issue assurance reports. In 2025, evaluated by a third-party institution, the Company's in- development. It steadfastly maintains the bottom line of fairness and justice in market operations, guiding all employees to estab-
ternal control management system was deemed reasonable and effectively operated, with internal controls for all major matters lish a correct view of competition and professional ethics. This not only solidifies its own operational risk defense line but also in-
maintained in good condition. jects positive momentum into the healthy development of the industry.
Compliance Management Anti-Commercial Bribery and Anti-Corruption
Xingtong Shipping regards compliance as the lifeline for its stable development. It has built a full-chain compliance risk control sys-
Upholding the business philosophy of "integrity, standardization, cooperation, and win-win," and guided by the creed of "respect-
tem, formulated and strictly adheres to regulations such as the Contract Management System, the Litigation Management System,
and the Sanctions Compliance Policy. It clearly defines the responsibilities and authorities of the Legal and Risk Control Depart- ing responsibility, respecting rules, respecting life," Xingtong Shipping deeply integrates integrity, compliance, and anti-corruption
ment, various business departments, and the Audit Department, resolving operational risks through means such as risk identifica- requirements into its daily production and operations, striving to build a clean and standardized enterprise. The Company has is-
tion, early warning, tracking, and control. Concurrently, the Company embeds anti-money laundering and sanctions compliance sued the Anti-Bribery Compliance Policy, clearly stating its adherence to domestic and international anti-bribery laws, regulations,
reviews into the KYC cooperation background check process, conducting investment cooperation in accordance with the law after and conventions, including the Criminal Law of the People's Republic of China and the U.S. Foreign Corrupt Practices Act (FCPA). It
completing the filing for anti-monopoly review of the concentration of undertakings. In 2025, the Company did not experience any
strictly prohibits bribery and corruption, and has established supporting reward and punishment mechanisms, using institutional-
significant illegal or regulatory violations.
ized measures to build a strong defense line against commercial bribery and corruption. In 2025, the Company did not experience
any matters or legal proceedings related to bribery, embezzlement, or corruption, nor did it incur any economic losses resulting
Compliance Review Process from such issues.
Post-Implementation Review
and Efficacy Assessment
Prior Prevention
The overall status of the project is
The responsible department collaborates supervised and evaluated, with cor-
with the Legal and Risk Control Depart- In-process Control rective suggestions provided for any
ment to conduct a legal and compliance violations of internal control require- Designated Senior Executive Legal and Risk Control Audit Department
review of specific matters from the per- ments or weak links in compliance
On the one hand, the responsible Department
spectives of laws and regulations, regula- department tracks the progress of the management, ultimately forming a
tory requirements, company policies, and project and, if risks or new compliance single compliance review report.
Lead the investigation of an- Responsible for receiving re- Assume supervisory respon-
procedural legitimacy. The project will be review requirements arise during
ti-corruption or anti-bribery ports related to anti-corruption sibilities, verifying the imple-
submitted to the management for further execution, promptly informs the Le-
decision-making only after the relevant violations and propose target- and anti-bribery, conducting mentation and execution of an-
gal and Risk Control Department for
departments have issued an unqualified intervention. On the other hand, mon- ed handling opinions based on specific investigations into vio- ti-corruption and anti-bribery
compliance opinion that it is "legally com- itoring is strengthened to ensure the the investigation results. lations, and regularly or irregu- compliance policies through
pliant, feasible, and procedurally proper." responsible department executes in a
legal and compliant manner and ad-
relevant policies.
regular or irregular audits.
Anti-Corruption Management Departments and Responsibilities
During the Reporting Period
the Company conducted the total duration of legal the total number of partici-
legal training training was pants in legal training was
Xingtong Shipping Co., Ltd.
Reporting and Complaints Anti-Unfair Competition
Xingtong Shipping has established a standardized and comprehensive anti-corruption reporting mechanism, clarifying the full-pro- Xingtong Shipping strictly adheres to the principles of fair competition and business ethics, comprehensively establishing an an-
cess requirements for receiving and handling reports. By maintaining open reporting channels, standardizing handling procedures, ti-unfair competition and integrity compliance management system. The Company strictly complies with laws and regulations such
and strengthening safeguard and incentive measures, it ensures the effective progress of anti-corruption/anti-bribery efforts and as the Anti-Unfair Competition Law of the People's Republic of China, the Anti-Monopoly Law of the People's Republic of China,
encourages all employees to participate in supervision. and the Anti-Money Laundering Law of the People's Republic of China. Following the Anti-Monopoly Compliance Policy, the Legal
and Risk Control Department leads anti-monopoly and fair competition management, resolutely eliminating unfair competition
practices and activities that disrupt fair market order. Concurrently, the Company strengthens integrity risk prevention and control
with the principles of being "strict, rigorous, and serious." It integrates integrity requirements into employees' daily work norms
Core channels are the compliance emails (legal@xtship- and strengthens the supervision of key personnel. Integrity clauses are embedded in major contracts, procurement processes and
Reports can be made anonymously or using ping.cn, compliance@xtshipping.com); and the complaint evaluation standards are improved, and a strict supervision mechanism is established to ensure the fairness and transparency of
real names regarding existing or potential hotline 0595-87777996. procurement activities. In 2025, the Company did not experience any unfair competition incidents, nor did it face litigation or major
administrative penalties due to its own unfair competition practices.
anti-corruption/anti-bribery violations by Employees may additionally report to the direct supervi-
company employees or business partners. sor of the reported individual or to the head of another su-
perior department; the person receiving the report must During the Reporting Period
promptly notify the Legal and Risk Control Department.
f Re
so p the Company conducted an- the total number of participants the total duration of
rm or
Fo g tin
d gC ti-monopoly and fair compe- in anti-monopoly and fair com- anti-monopoly and
n tin
p e a por ha
nn tition training activities petition training was fair competition training was
o Re
Sc el
Anti-Corruption
s
es
Reporting
Han
sur
Upon receiving a report, the Legal Retaliation against whistleblowers
Mechanism
Mea
dlin
and Risk Control Department must acting in good faith and investigation
Study
Case
g Pr
ard
promptly report it to a designated participants is strictly prohibited. The
Regulating Fair Competition, Strictly Adhering to Compliance Bottom Line
egu
senior executive, under whose coor- entire process of receiving and han-
oce
Saf
dination the case investigation will dling reports is strictly confidential.
ss
Incentive Mechanism
be conducted. In September 2025, Xingtong Shipping organized anti-unfair competition training. The content covered the Chinese
anti-monopoly and anti-unfair competition legal framework, regulatory trends, and typical case analyses, while also
conducting research on relevant Singapore regulatory frameworks. This training effectively strengthened employees'
compliance awareness, clarified the legal boundaries of market competition, helped the Company avoid operational
A reporting reward fund has been
risks, and laid the foundation for building a compliant operating system and participating in fair market competition.
established. Reporters will be re-
warded if the reported content is
verified as true after investigation.
反不正当竞争培训
Anti-Unfair Competition Training
Xingtong Shipping Co., Ltd.
Party-Building Leadership Party-Building Activities
The Company's Party General Branch actively practices the concept of promoting development through Party-building, driving the deep integration
and mutual reinforcement of Party-building work with daily operations. To meet the requirements of Party-building in the new era, the Party Gen-
As the first private enterprise Party General Branch in Quangang District, the Xingtong Shipping Party General Branch uses the op- eral Branch, based on the actual work situation after the structural adjustment and focusing on current hot topics, innovatively launched a series of
timization of the Party organization structure as a lever, the construction of the Party member team as the core, and characteristic diverse and meaningful Party member educational activities, effectively enhancing the impact and effectiveness of the education. The implemen-
activities such as red study tours and joint learning and co-construction as carriers. It effectively transforms the Party's political and tation of these activities constitutes not only a profound exercise in Party spirit and spiritual baptism but also demonstrates Xingtong Shipping's
organizational strengths into corporate development advantages and market competitiveness, solidifying the political foundation firm determination to integrate Party-building into the fabric of the enterprise and guide high-quality development with high-quality Party-building
for the Company's stable development and uniting efforts for progress. leadership. Standing at a new starting point, all Party members of the Company are striving with renewed vigor to contribute the surging strength of
Party-Building Management
"Xingtong" to the creation of a new chapter in Chinese-style modernization.
Study
Case
The Xingtong Shipping Party General Branch consistently Pros- System: "Connecting" the Pros- Team: "Interchanging"
adheres to the guidance of Xi Jinping Thought on Socialism Following the Red Trail, Inheriting the Spirit of Struggle
Party and Enterprise Talent
per- per-
ous ous
with Chinese Characteristics for a New Era. Closely focusing
on the responsibilities and missions of non-public enterpris- In June 2025, Party members from the Company went to Xiadang Township, Shouning County, Ningde, to conduct a July
Two-way participation in leader- Highlight the vanguard role of
es, it concentrates on three core tasks: improving the quality 1 Party Day activity titled "Recalling the 'Three Visits to Xiadang' to Gather Today's Guiding Aspiration." During the ac-
ship teams, two-way integration Party members, mobilize their
of the Party member team, innovating educational formats, tivity, through precious historical materials, Party members deeply appreciated the leader's profound sentiment for the
in management, two-way cultiva- learning capability, and leverage
and strengthening the sense of responsibility. It solidly pro- people and the struggle spirit of the people in eastern Fujian, characterized
tion of talent. their creativity.
motes the deep integration of Party-building management by "the weak bird takes flight early, and persistent effort can wear away a
with production and operations. stone." When reviewing their oath to join the Party, all Party members spoke
Pros- Ideas: "Sharing" Pros- Culture: "Cohesive" with firmness, never forgetting their original aspiration for joining the Party.
During the Reporting Period, through precise research and per-
Development
per-
Responsibility By retracing the "Party-Masses Heart-to-Heart Path," Party members experi-
overall planning, the Company's Party General Branch
ous ous
enced the deep bond of unity between cadres and the masses in overcoming
completed the optimization and adjustment of the Party difficulties through their trek. At the forum, Party members freely shared
Strengthen communication and Emphasize cultural immersion,
organization structure, integrating two Party branches. This their insights based on their roles, unanimously expressing their commit-
exchange between the govern- commit to humanistic care, and
increased the number of subordinate Party branches from ment to integrating the eastern Fujian spirit into their being. In the magnifi-
ment and enterprises, deepen joint actively participate in local pub-
four to six, further expanding the coverage of the Party or- cent voyage of serving the "Belt and Road" Initiative and building a maritime
construction with new economic lic welfare.
ganization and solidifying the organizational foundation for power, they pledged to row and sail with a more vigorous spirit, bravely take
and social organizations, and inno-
serving business development. Regarding the construction the lead, and let the "Xingtong Red Sail" fly high over the vast seas.
vate collaboration among police, July 1 Party Day Study Tour
of the Party member team, strictly following the overall re-
schools, enterprises, and villages.
quirements of "controlling the total number, optimizing the
structure, improving quality, and playing a role," the Party "Four Connections" Work Method
Branch successfully developed two outstanding key person-
nel into probationary Party members in 2025. At the same As of the end of the Reporting Period
Study
Case
time, it efficiently completed the transfer and integration of
Party organization relationships for newly hired employees the Company had full Party probationary Party Party-Building Co-construction Gathers Consensus, Deep Learning and Reflection Practice
who are Party members, continuously strengthening the
Initial Commitment
Party member team and injecting fresh vitality.
security bureau, village committees, and other relevant units, conducted a special Party course activity on jointly studying the eight-
point decision on improving Party and government conduct. Representatives from various units shared practical experiences on im-
Party-Building Education proving work style, using case studies to strengthen self-education. Through cross-unit collaborative learning, the activity promoted
a deep understanding of the eight-point decision, strengthened Party members' discipline and awareness of rules, and built a
The Company's Party General Branch regularly carries out Party-building learning and education. On one hand, it periodically con- bridge for Party-building co-construction among police, schools, enterprises, and villages, consolidating multi-party consensus and
venes Party member meetings and organizes various Party course studies to strengthen the ideological foundation of Party mem- laying a solid foundation for deepening cooperation and jointly promoting development. Concurrently, the co-constructing units
bers. On the other hand, it focuses on current affairs, organizing all Party members to collectively watch military parades and, cen- also organized students from the Quangang Experimental Kindergarten to visit the Company's "Pioneering Culture Exhibition Hall."
tered on the Party's latest theoretical achievements and policy directions, helps Party members promptly grasp the Party's latest Through the form of "educational immersion + practical engagement," they guided the children to appreciate corporate culture and
guidelines through special study sessions and seminar exchanges, continuously enhancing their political judgment, understanding, cultivate patriotic sentiments through immersive experiences, allowing the red gene to take root and sprout in the fertile soil of the
and execution capabilities. new era, presenting a tribute to the Party's birthday through practical action and dedication.
Party General Branch Party Studied the Party Course Study in June Party General Branch Held Party Maember Joint Party Day Activity of Police, Schools, Enterprises, and Villages
Eight-Point Decision in March Meeting in July
Xingtong Shipping Co., Ltd.
ESG 数据表和附注 Environmental Performance1
Key Indicator Base Unit 2025 2024 2023
Environmental Management
Governance Performance Total Environmental Investment RMB 10,000 590.85 254.31 112.29
Violations of Laws and Regulations Concerning
Key Indicator Base Unit 2025 2024 2023 Case(s) 0 0 /
Environmental Protection
Governance Through the General Meeting of Shareholders and Board of Directors
Energy Management
Total Number of General Meetings of Shareholders Convened Time(s) 4 5 5
Total Fuel Oil Consumption (Own Vessels, Voyage
Number of Proposals Reviewed and Approved at General Meetings of Charter)
No. 20 19 50
Shareholders
Of which: Fuel Oil 10,000 tons 3.62 2.89 2.52
Number of Board Members Person(s) 11 11 11
Diesel 10,000 tons 1.6 1.25 0.92
Number of Meetings of Board of Directors Convened Time(s) 10 10 12
Gasoline (Official Vehicle) Liters 30,825.93 35,182.73 32,641.74
Number of Proposals Reviewed and Approved by the Board of Directors No. 51 45 93
Diesel (Official Vehicle) tons 0.98 / /
Investor Relations Management
Total Electricity Consumption (Office) kWh 334,987 242,211.37 216,862
Number of Performance Briefings Time(s) 4 4 3
Total Energy Consumption tce 75,043.81 59,500.58 49,467.51
Number of Interactions with Investors on SSE E-Interaction Platform Time(s) 49 17 16
Climate Change Adaptation and Mitigation
Response Rate to Investor Inquiries % 100 100 100
Total GHG Emissions (Scope 1 + Scope 2) tCO2e 164,273.85 130,138.52 108,170.42
Information Disclosure
Direct (Scope 1) GHG Emissions (Own Vessels,
tCO2e 164,022.96 129,922.25 107,976.95
Number of Periodic Reports Disclosed Copies 4 4 4 Voyage Charter)
Number of Provisional Reports Disclosed Copies 85 85 125 Direct (Scope 1) GHG Emissions (Official Vehicle) tCO2e 73.14 78.14 69.79
Number of Penalties for Violations in Information Disclosure Time(s) 0 0 0 Indirect (Scope 2) GHG Emissions (Purchased
tCO2e 177.74 138.13 123.68
Electricity by Offices on Shore)
Compliance Management
Indirect (Scope 3) GHG Emissions (time-char-
Total Number of Anti-Corruption and Anti-Bribery Whistleblows Time(s) 0 0 0 tCO2e 46,241.91 / /
tered ships) 2
Water utilization
Economic Performance Total Water Consumption m? 156,395.63 131,784.32 98,302.08
Office Water Consumption m? 2,235 1,835.30 1,685.38
Key Indicator Base Unit 2025 2024 2023 Ship Water Consumption m? 154,160.63 129,949.02 96,616.70
Operating Revenue RMB 10,000 162,842.28 151,473.84 123,727.03 Wastewater
Net Profit Attributable to Shareholders Total Ship Wastewater Discharge (Discharged to
RMB 10,000 26,998.89 35,041.63 25,219.59 m? 172,993.04 123,860.87 96,616.70
of the Listed Company Sea + Shore-Received)
Cash Dividend per Share RMB/Share 0.20 0.2 0.15 Discharged to Sea (Compliant Discharge / Dis-
m? 168,969.54 116,439.78 94,596.08
charged After Treatment)
Total Cash Dividend(Tax included and
RMB 10,000 6,491.66 5,594.60 4,138.91
repurchase excluded) Total Volume of Shore-Received Wastewater m? 4,023.50 7,386.08 2,020.62
Percentage of Net Profit Attributable to Of which: Domestic Sewage m? 50 / /
% 24.04 15.97 16.41
Shareholders of the Listed Company
Note 1: Due to changes in statistical reporting standards, some data have been retroactively adjusted to ensure comparability.
Note 2: Scope 3 greenhouse gas data statistics have been gradually improved in 2025. No statistical data is available for 2023 and 2024.
Xingtong Shipping Co., Ltd.
Key Indicator Base Unit 2025 2024 2023 Key Indicator Base Unit 2025 2024 2023
Oily Water (Engine Room) m? 463.89 231.13 162.35 31-45 Person(s) 74 70 66
Tank Washings m? 3,509.61 7,154.95 1,858.27 46-55 Person(s) 31 30 25
Exhaust Gas 56 Years Old or Above Person(s) 9 7 10
NOx tons 2,846.12 2,899.76 2,435.41 New Hires Person(s) 34 21 23
SOx tons 2,758.28 306.83 247.19 Number of Employee Turnover Person(s) 11 7 11
PM tons 420.64 / / Total Employee Turnover Rate % 6.75 5.15 8.59
VOCs tons 127.66 / / Labor Relations Management - in-house crew members
Waste Total Number of Crew Members Person(s) 659 595 551
Ship Garbage/Waste Disposal Volume m? 1,827.21 1,222.55 760.81 Number of In-house Crew Members by Job Level
Of which: (Food Waste) Discharged into the Sea Captain Person(s) 43 32 26
After Treatment in Accordance with MARPOL m? 73.3 91.88 63.12
Senior Crew Members Person(s) 260 240 210
Annex V
Regular Crew Members Person(s) 356 323 315
Waste Incinerated m? 12.3 8.18 /
Number of In-house Crew Members by Age
Waste Discharged to Reception Facilities m? 1,741.61 1,122.50 697.69
Compliant Waste Disposal Rate % 100 100 100
Non-hazardous Waste Generated m? 732.08 673.14 245.8 26-35 Person(s) 139 133 122
Hazardous Waste Generated m? 1,095.12 549.42 481.74 36-45 Person(s) 286 253 230
Social Performance
Key Indicator Base Unit 2025 2024 2023 New Hires Person(s) 160 189 178
Labor Relations Management - Shore-based Employee Number of Employee Resignations Person(s) 93 86 121
Total Number of Shore-based Employees Person(s) 163 136 128 Total Employee Turnover Rate % 14.11 14.45 21.96
Number of Shore-based Employees by Gender Compensation and Benefits - Shore-based Employees
Female Person(s) 71 59 51 Social Insurance Coverage Rate % 95.09 97.79 /
Male Person(s) 92 77 77 Percentage of Employees Regularly Undergoing Perfor-
% 96.32 95.59 /
mance Assessment and Career Development Evaluations
Number of Shore-based Employees by Job Level
Compensation and Benefits - In-house Crew Members
Senior Management Person(s) 6 6 6
Social Insurance Coverage Rate % 100 100 100
Middle Management Person(s) 44 37 37
Development and Training - Shore-based Employees
Junior Management Person(s) 34 30 36
General Staff Person(s) 79 63 49 Investment in Employee Training RMB 10,000 11.62 23.2 /
Number of Shore-based Employees by Age Total Number of Employees Trained Person(s) 163 130 119
Under 30 Years Old Person(s) 49 29 27 Employee Training Coverage Rate % 100 95.59 92.97
Xingtong Shipping Co., Ltd.
Key Indicator Base Unit 2025 2024 2023 Key Indicator Base Unit 2025 2024 2023
Average Training Hours per Employee per Year Hours/Person 24.09 30.62 24.76 Number of Port State Control (PSC) Ship Inspections Ship-time(s) 44 27 17
Development and Training - In-house Crew Members Number of Port State Control (PSC) Ship Detentions Ship-time(s) 0 0 0
Investment in Crew Training RMB 10,000 72.7 75.22 44.08 Number of Flag State Control (FSC) Ship Inspections Ship-time(s) 47 38 45
Total Number of Employees Trained Person(s) 667 595 / Number of Flag State Control (FSC) Ship Detentions Ship-time(s) 0 0 0
Crew Training Coverage Rate % 100 100 100
Number of SIRE Inspections Ship-time(s) 66 64 44
Average Training Hours per Crew Member per Year Hours/Person 98.05 101.11 89.91
SIRE Inspection Pass Rate % 100 100 100
Democratic Governance & Employee Satisfaction
Number of CDI Inspections Ship-time(s) 22 6 7
Shore-based Employee Satisfaction % 96.81 95.9 /
CDI Inspection Pass Rate % 100 100 100
Proportion of Trade Union Members in Existing Employees % 100 100 /
R&D and Innovation
Safety and Health
Investment in R&D RMB 10,000 111.46 149.69 153.94
Investment in Work Safety RMB 10,000 1,967 1,578.45 1,180.80
Cumulative Number of Granted Patents No. 27 27 26
Number of Joint Safety and Emergency Drills Between
Sessions 4 6 4
Ships and Shores Cumulative Number of Software Copyrights No. 18 18 18
Number of Safety Education and Training Sessions Sessions 972 956 / Total Number of Trademarks No. 23 18 12
Total Hours of Safety Education and Training Hours 31,734 3,732 / Supply Chain Management
Coverage Rate of Safety Education and Training % 100 100 / Supplier Review Coverage Rate % 100 100 100
Investment in Work-related Injury Insurance RMB 10,000 46.42 40.06 37.19 Signing Rate of Integrity Agreements with Core Suppliers % 100 100 100
Coverage Rate of Work-related Injury Insurance % 99.03 100 / Data Security and Customer Privacy Protection
Employee Health Checkup Coverage Rate % 98.53 100 / Number of Data Security Violation Incidents Time(s) 0 0 0
Occupational Hazard Factor Detection Rate % 100 100 /
Specific Amount Involved in Data Security Incidents RMB 10,000 0 0 0
Occupational Hazard Factor Monitoring Compliance Rate % 100 100 /
Number of Incidents Involving Leakage of Customer Information Case(s) 0 0 /
Number of Safety Incidents Case(s) 0 0 0
Contribution to Society
Major Safety Incidents Case(s) 0 0 0
Total Social Welfare Investment RMB 10,000 161.5 200 202.28
Number of Work-related Deaths Person(s) 0 0 0
Number of Volunteer Activity Participants Person-times 135 130 100
Work-related Fatality Rate % 0 0 0
Number of Volunteer Activities Time(s) 5 5 5
Total Number of Work-related Injuries Person(s) 0 0 /
Investment in Rural Revitalization RMB 10,000 1.9 1.74 /
Working
Number of Working Days Lost Due to Work-related Injuries 0 0 /
Day(s) Number of People Benefiting from Rural Revitalization Person(s) 30 / /
Xingtong Shipping Co., Ltd.
Indicator Index of 2025 ESG Report of Xingtong
Shipping Co., Ltd.
Guidelines No. 14 of Shanghai Stock Exchange
Guidelines for Preparing Corporate Social Responsi-
Corresponding Report Section for Self-Regulation of Listed Companies—Sus- GRI Standards
bility Reports in China (CASS-ESG 6.0)
tainability Report (Trial)
About This Report / P1 2-1/2-2/2-3
Message from the Chairman and General Manager / P2 2-22
About Xingtong Shipping / P3 2-6
ESG Governance Articles 5, 9, 11 to 19, 51 and 53 G1.1-G1.3 2-9/2-12/2-22/2-29/3-1-3-3
Consolidating the Foundation, Stabilizing the
Articles 49 and 50 S4.2 403-1/403-7
Special Fea- Leading Industry Position
ture: Intelligent
Diversified Exploration, Building a New Force in
Voyage Across Articles 21 to 27, 41 E1.1/S2.1 305-1/305-2
International Shipping
Blue Seas,
Green Xingtong Technology Empowerment, Leading the Indus-
Articles 41 and 42 S2.1 /
try's Digital Transformation
Climate Change Adaptation and Mitigation Articles 21 to 27 E1.1 305-1/305-2
Green Empow-
erment: Setting Environmental Management and Ecological
Articles 29 to 32 E2.1/E2.2/E2.3/E2.4 304-1/304-2/304-3/304-4/307-1
a Benchmark Protection
for Low-Carbon Pollutant Emissions and Waste Management Articles 30, 31 and 33 E2.2/E2.4 305-5/305-6/305-7/306-1/306-2
Shipping
Circular Economy and Resource Utilization Articles 34 to 36 E3.1-E3.2 302-1/302-3/303-1/305-4/306-2
Innovation-Driven Development and Intellec-
Articles 41 and 42 S2.1 /
tual Property
Product and Service Safety and Quality Article 47 S3.2 416-1/416-2/417-1
Collaborative Data Security and Customer Privacy Protection Article 48 S3.4 418-1
Co-creation: Supply Chain Security Articles 44 and 45 S3.1 308-1/414-2
Enhancing
Employment and Employee Rights Articles 49 and 50 S4.1 401-1/405-1/406-1/408-1/409-1
Safety and
Service Levels Employee Training and Development Articles 49 and 50 S4.1/S4.3 401-2/404-1/404-2/404-3
Occupational Health and Safety Articles 49 and 50 S4.2 403-1/403-2/403-3/403-5/403-6/403-9/403-10
Fostering Community Co-development Articles 38 to 40 S1.2 413-1/415-1
Collaborating for Industry Progress Articles 41 and 42 S2.1 /
Compliance as Corporate Governance Article 53 G1.1 2-9/2-12
the Helmsman: Transparent Disclosure Article 53 G1.2 2-29
Solidifying the
Risk Control Articles 12 and 15 G1.3 207-1/207-2
Foundation for
Sustainable Business Ethics Articles 54 to 56 G2.1/G2.2 205-2/205-3/206-1
Development Party-Building Leadership / / /
ESG Data Table and Notes / A2 305-3
Conclusion Index Table Article 57 A3 /
Terms and Definitions / / /
Xingtong Shipping Co., Ltd.
Terms and Definitions
Term Definition Term Definition
International Maritime Organization is a specialized agency of the United Nations responsible for
Document of Compliance is a document issued to a shipping company or ship management com-
maritime safety and preventing ship-generated marine pollution. Its purpose is to promote tech-
pany as proof of compliance with the International Safety Management (ISM) Code. It indicates
IMO nical cooperation among countries in the shipping industry, encourage countries to adopt unified DOC
that the Company has an effective safety management system in place to ensure safe ship opera-
standards in promoting maritime safety, improving ship navigation efficiency, and preventing and
tions and prevent pollution.
controlling ship pollution to the oceans, and to carry out related activities.
Safety Management Certificate is a certificate issued to a ship by the competent authority or an
International Convention for the Prevention of Pollution from Ships is an international convention established
accredited organization after the ship has established and operated a safety management system
MARPOL by the International Maritime Organization that sets safety regulations regarding the prevention and limitation SMC
in compliance with the ISM Code and passed an audit, certifying that the ship is capable of safe
of ship discharges of oil and other harmful substances that pollute the oceans.
operations and preventing pollution.
According to IMO requirements, existing ships need to meet the D-2 standard for ballast water
International Conven- Safety & Quality Management System. Refers to the management system established by the Com-
discharge at the first IOPP renewal inspection after September 8, 2017; new ships delivered on
tion for the Control or after September 8, 2017, should meet at least the D-2 discharge standard at the time of deliv- pany for the institutional integration of safety management, quality management, and related
and Management of ery. MEPC71 approved the amendment to Article B-3 of the Ballast Water Convention. New ships environmental/occupational health requirements. It covers ship-shore coordination, risk identifi-
SQMS
should be equipped with a BWMS at the time of delivery to meet the D-2 discharge standard. Exist- cation and control, operating procedures, training and drills, inspection/auditing, and continuous
Ships' Ballast Water
ing ships should be equipped with a Ballast Water Management System (BWMS) during their first improvement, ensuring safe operation, compliance management, and stable service quality dur-
and Sediments ing hazardous chemicals transportation.
IOPP certificate renewal inspection on or after September 8, 2019.
European Union Emissions Trading System is a carbon emissions trading mechanism established Safety Management System refers to the safety management system established and operated by
by the EU to achieve greenhouse gas reduction targets. By setting an overall carbon emissions the Company in accordance with the International Safety Management (ISM) Code. It standard-
EU ETS cap, carbon emissions quotas are allocated to businesses, allowing the trading of carbon emis- izes ship-shore coordinated management and ship safety operations and pollution prevention
SMS
sion rights between companies, using market methods to encourage businesses to reduce carbon activities, covering safety responsibilities and procedures, operational controls, risk assessment,
emissions. emergency preparedness, accident reporting and corrective/preventive actions, auditing, and
continuous improvement.
Energy Efficiency Existing Ship Index is a requirement for the energy efficiency and carbon dioxide
EEXI
emissions per ton-mile of existing ships. Tanker Management and Self Assessment is an industry management framework proposed by the
Oil Companies International Marine Forum (OCIMF). Through graded assessment and continuous
Carbon Intensity Indicator measures the carbon dioxide emissions during the shipping process improvement of elements such as safety management, ship operations, personnel capability,
and reflects the carbon emissions generated per unit of cargo transported. This index was intro- TMSA
maintenance assurance, accident prevention, and emergency response, it helps tanker/liquid
CII duced by the IMO to address climate change and reduce greenhouse gas emissions. It aims to en- cargo ship companies benchmark against the requirements of major international oil companies,
courage ship operators to adopt more energy-efficient and environmentally friendly operational systematically enhancing safety management maturity and operational management level.
methods to reduce carbon emissions.
Deadweight Tonnage refers to the maximum weight a ship can safely carry under specified draft
Energy Efficiency Operational Indicator is proposed by the IMO and is used to measure a ship's DWT and sailing conditions, including cargo, fuel, fresh water, ballast water, crew, and supplies. It is an
energy efficiency and carbon emission intensity in actual operation. It is typically expressed as important indicator of a ship's carrying capacity.
EEOI "CO2emissions per unit of transport work" (e.g., CO2 emissions per ton·nautical mile) and can be
used for monthly/annual energy efficiency performance tracking, benchmarking, and continuous Electronic Chart Display and Information System refers to a navigation system on ships used to
improvement. display official electronic navigational charts and integrate information such as position, speed,
ECDIS
radar, and AIS. It enables route planning, hazard warnings, and the setting of no-go zones. It is one
Port State Control refers to the supervision and control conducted by the maritime authority of
of the core navigation safety devices recognized and required by the IMO.
PSC the port state on foreign ships entering its ports, in accordance with relevant international con-
ventions. Particularly Sensitive Sea Area is an area identified within the IMO framework that, due to its
significant ecological, socio-economic, or scientific value and vulnerability to damage by interna-
Flag State Control refers to the supervision and inspection conducted by the maritime authority of
FSC PSSA tional shipping activities, requires "special protective measures adopted by the IMO." It is typically
the flag state on ships registered under its flag.
supported by protective measures such as routing systems, no-go/restricted navigation areas, and
Ship Inspection Report Programme is an industry-wide ship inspection and reporting system reporting systems to reduce shipping impacts and risks to sensitive areas.
aimed at improving the safety and anti-pollution standards of oil tankers and chemical tankers.
SIRE Ship Cyber Safety Officer (or Ship Cyber Security Officer) refers to a cybersecurity officer desig-
Through unified inspection standards and reporting formats, it provides references for ship opera-
tion, chartering, and other related activities. nated/appointed by the Company on board, responsible for promoting the implementation of
the ship's cybersecurity plan (or cybersecurity/cyber protection plan), organizing the execution
SCSO
Chemical Distribution Institute is an international industry organization dedicated to developing of crew cybersecurity awareness and operational requirements, monitoring the effectiveness of
CDI and promoting safety, environmental protection, and operational standards for the transportation measures, and coordinating reporting, handling, and improvement actions according to proce-
of chemicals by ships. dures when a cyber incident occurs or risks are identified.
Printed on recycled paper
Address: 2nd, 5th, 7th-9th Floors, Xingtong Shipping Building, No. 295 Yifeng East
Road, Quangang, Quanzhou, Fujian Province
Tel: 0595-87777879
Zip Code: 362800
Website: http:/www.xtshipping.com
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