Stock Abbreviation: Xiamen Xiangyu
Stock Code: 600057
Benefit the World ENVIRONMENTAL SOCIAL AND
Achieve Success Together CORPORATE GOVERNANCE(ESG) REPORT
Address: F Building B XMXYG CORP. Building No. Xiangyu Road
Fujian FTZ Xiamen Area Huli District Xiamen
website:www.xiangyu.cn
E-mail: stock@xiangyu.cn
Telephone: --目C录ONTENTS
About This Report 1 ESG Performance 102
Message from the Chairman 3 Index 106
About Xiamen Xiangyu 5 Reader Feedback 110
Sustainable Development Management 11
011 Benefiting All 02Embracing Low- 03Empowering Smart 04Improving Quality Fostering with Robust Carbon Style for Xiangyu through through Steady and 05Talent for Governance a Green Xiangyu Digitalization Innovative Development Harmony 06Cultivating Partnerships for Joint Achievement
Corporate Governance 17 Environmental Management 37 Digital Framework 47 Quality Management 59 Equal Employment 71 Industry-Academia-Research
Collaboration 95
Information Disclosure and Energy Saving and Emission Digital System 49 Logistics Capability 62 Remuneration and Benefits 73
Investor Management 22 Reduction 40 Industry Cooperation 97
Information Security 55 Supplier Management 66 Training and Promotion 76
Risk Management 26 "Three Wastes" Treatment 43
Employee Rights 80
Business Ethics 33
Occupational Health and Safety 81
Public Welfare Activities 892023 Environmental Social and Corporate Governance (ESG) Report Xiamen Xiangyu Co. Ltd.About This Report
This Report aims to give a true accurate and complete picture of our efforts and achievements in implementing the
concept of high-quality sustainable development to the government and regulators shareholders and investors Basis for Preparation
customers suppliers employees the public and other stakeholders.· United Nations 2030 Sustainable Development Goals (SDGs)
· Global Reporting Initiative Standards (GRI Standards) issued by Global Sustainability Standards Board
Reporting Cycle and Period · G uidelines on Corporate Social Responsibility Reporting for Chinese Enterprises (CASS-ESG 5.0) issued by the
Chinese Academy of Social Sciences (CASS)
This Report is made on an annual basis and covers the period from January 1 2023 to December 31 2023. To enhance its · G uidelines No. 1 of Shanghai Stock Exchange for the Application of the Self-Regulation Rules for Main Board Listed
comparability and integrity certain contents have been retroactive to previous years in an appropriate manner. Companies - Standardized Operation
· G uidelines No. 14 of Shanghai Stock Exchange for the Application of the Self-Regulation Rules for Listed
Companies - Sustainability Report
Reporting Scope
This Report covers Xiamen Xiangyu and its subsidiaries. For ease of expression and reading the subsidiaries herein Currency Unit Description
are referred to as the following abbreviations:
All the financial data herein are denominated in RMB.Abbreviation Full Name
Xiamen Xiangyu the Company we us our Xiamen Xiangyu Co. Ltd. Reliability Assurance
Xiangyu Agricultural Heilongjiang Xiangyu Agricultural Products Corporation
Xiangyu Superchain Xiangyu Superchain Supply Chain Development Co. Ltd. The Company and all members of its board of directors warrant that the information disclosed herein is true
Xiangdao Logistics Xiangdao Logistics Corporation complete and accurate without false records misleading statements or material omissions.Xiangyu SOE Nantong Xiangyu Shipbuilding & Offshore Engineering Co. Ltd.Xiangyu New Energy Xiamen Xiangyu New Energy Co. Ltd.Fujian Xingda Fujian Xingda Import & Export Trading Co. Ltd. Access to This Report
Xiangyu Commodities Xiamen Xiangyu Commodities Co. Ltd.Xiangyu Resources Xiamen Xiangyu Resources Co. Ltd. We will publish this Report in electronic forms for the purpose of low carbon and environmental protection. If
Hubei Chuxiang Hubei Chuxiang Supply Chain Group Co. Ltd. necessary you can read the electronic version of this Report on our website (www.xiangyu.cn/index.aspx) and www.Xiamen Great Corporation Great Corporation （Xiamen）Co. Ltd. cninfo.com.cn.Zhuoyu Supply Chain Xiamen Zhuoyu Supply Chain Management Co. Ltd.Xiangyu Zhengfeng Tangshan Xiangyu Zhengfeng International Logistics Co. Ltd
Fujin Xiangyu Fujin Xiangyu Jingu Agricultural Products Co. Ltd. Contact Information
Suihua Xiangyu Suihua Xiangyu Cereals and Oil Technologies Co. Ltd.Xiangming Oils Rizhao Xiangming Oils Co. Ltd. Address: 11F Building B XMXYG CORP. Building No.85 Xiangyu Road Fujian FTZ Xiamen Area Huli District Xiamen
Xiamen Singamas Xiamen Singamas Import & Export Trading Co. Ltd. Telephone: 0592-6516003
PIL Total Logistics Xiamen Xiangyu PIL Total Logistics Co. Ltd. Fax: 0592-5051631
Anyang Xiangdao Anyang Xiangdao Logistics Co. Ltd. E-mail: stock@xiangyu.cn
Shaanxi Xiangdao Shaanxi Xiangdao Logistics Co. Ltd.Liangshan Xiangyu Liangshan Xiangyu Supply Chain Co. Ltd.
1 22023 Environmental Social and Corporate Governance (ESG) Report Xiamen Xiangyu Co. Ltd.
Chairman's Message
Dear Esteemed Shareholders Investors Business Partners Pursuing green development to lead industrial transformation. Contributing to the society to build a harmonious future.Colleagues and Friends from all walks of life. We adhere to the development concept that "lucid waters We have always adhered to our corporate mission of "Benefit
and lush mountains are invaluable assets" complying with the World and Achieve Success Together" and actively
In 2023 the global industrial and supply chains have the national goals of "carbon peaking and carbon neutrality" engaged in various social welfare activities to convey the
undergone an unprecedented baptism and reshaping with and promoting low-carbon transformation and upgrades of Company's commitment and social responsibility. In terms
the market being as unpredictable as ever and challenges industries. In practice we have reduced carbon emissions in of rural revitalization we have engaged in targeted assistance
and opportunities coexisting. Faced with a complex our operations by employing alternative energy and innovative and support projects to enhance rural infrastructure and
macroeconomic environment we have remained steadfast technologies. We have also increased investment in and improve the quality of life of local residents. We also prioritize
in our commitment to high-quality development and long- maintenance of environmental protection facilities to ensure contributing to community development through diverse
termism. We have continuously advanced the construction proper treatment of waste gas wastewater and solid waste channels such as educational support and cultural exchange
of ESG enhancing the Company's sustainable development effectively preventing environmental pollution. In addition we toward building a more harmonious and inclusive society.capabilities from the dimensions of environment society have vigorously explored the application of digital technology
and corporate governance. We have deeply promoted in energy conservation and emission reduction. We have As we look ahead to 2024 we are committed to enhancing
the transformation and upgrading of our business model built systems such as "Yu Lian Tong" and "Smart Logistics" to transparency and fairness in corporate governance
maintaining resilience amidst the ever-changing landscape. innovate on business models and refine service management ensuring our steady development by establishing a higher
so as to further enhance the greenization and intelligence of standard of internal control and compliance system. As for
Maintaining robust governance lays a solid foundation for our supply chain. Through these initiatives we aim to foster green development we will increase investment in green
development. We have strengthened modern governance sustainable development through innovation and envision a technologies and innovative practices to further minimize the
and continuously refined our delegation and management greener smarter future for our industry. impact of our operations on the environment and support the
system under the guidance of the national strategy. However long-standing goal of global carbon neutrality. Regarding social
the anomalous events in 2023 remind us that improving Prioritizing people to create a better life together. Talent is responsibility we will continue to devote ourselves to social
corporate governance is a long-term dynamic and continuous the core driving force of enterprise development. We prioritize welfare and contribute to building a more harmonious society
process. Therefore we have taken active measures to cope people always focusing on the well-being of employees. We through educational support community development and
with challenges enhancing our risk management framework care for the physical and mental health of employees in a cultural activities. We will advance our transformation to high-
and our capability to identify assess and respond to potential comprehensive and multifaceted way through measures such quality development by capitalizing on the opportunities in the
risks. The adaptability and resilience of our risk control system as health check-ups and psychological support. Meanwhile industrial and supply chains. Our goal is not only to become
demonstrated through this process have proven that our we have provided diverse career development opportunities a global leader in supply chain services but also to integrate
governance structure and risk management strategy remain and training resources to help employees improve their our development with environmental protection social
effective. At the same time we have further clarified the code professional skills and achieve career growth. Moreover responsibility and excellent governance fostering sustainable
of business ethics and supervision mechanism to ensure strict we have established effective incentive mechanisms to growth in value for our shareholders investors employees
compliance of our business activities with laws regulations and acknowledge and reward the efforts of every employee business partners and the broader society. Chairman of Xiamen Xiangyu Co. Ltd.:
ethical standards. We are committed to becoming an industry enhancing their sense of belonging and happiness. Our goal
benchmark in corporate governance always prioritizing the is to grow alongside our employees enabling every employee Deng Qidong
protection of the interests of all investors especially minority to find space for growth at Xiamen Xiangyu realize their self-
shareholders with high standards of transparency and fairness worth and together build a better life.laying a solid foundation for the Company's sustainable
development.
3 42023 Environmental Social and Corporate Governance (ESG) Report Xiamen Xiangyu Co. Ltd.
About Xiamen Xiangyu
Company Profile
Xiamen Xiangyu Co. Ltd. is committed to becoming
a world-class supply chain service company serving
national strategy and regional economic development
and adheres to the strategic thinking of 'rooted in the
supply chains serving industry chains and creating value
chains'. Quickly responding to customer demands we
integrate global quality resources to provide a diversified
service portfolio and customize integrated supply chain
solutions through the "Xiangyu Digital Intelligence Supply
Chain Integrated Service Platform". We endeavor to
build a safe stable smooth and efficient industrial and
supply chain ecosystem and create a mutually beneficial
and win-win value-added ecosystem. Currently we offer
supply chain services for commodities such as agricultural
products energy chemicals metal minerals and new
energy and our business volumes in key categories where
we hold a competitive edge are among the highest in the
industry. Our customers span over 100 countries and our
subsidiaries cover major provincial-level administrative
regions in China. We have also established overseas
business entities in Singapore Vietnam and Indonesia
etc. which serve as hubs for transnational cooperation
and bridges for international exchanges conducive to
building a mutually beneficial diverse balanced safe
and efficient open economic system.
5 62023 Environmental Social and Corporate Governance (ESG) Report Xiamen Xiangyu Co. Ltd.
Business Distribution of Xiamen Xiangyu1 Overseas Layout
Finland We have strategically targeted the countries and regions along the "Belt and Road" and vigorously explored the
Netherlands
Britain international market by establishing extensive business ties with partners in more than 100 countries. We focus on Germany Canada
France overseas quality purchase and sales channels deeply tap the overseas supply chain demands of large Chinese-funded
Spain Uzbekistan
Mongolia enterprises. To better serve global customers we have established overseas business entities in Singapore Vietnam and
Turkey The United States
South Korea Indonesia etc. to empower our international business network and provide our customers with convenient and efficient
Japan
Pakistan localized services as "service stations" for our overseas business.Saudi Arabia United Arab Emirates Mexico
Senegal India Vietnam
Thailand The Philippines
Nigeria Corporate Culture
Colombia
Kenya Singapore
Malaysia
Congo Indonesia
Peru Brazil
Zimbabwe Madagascar
Australia
Mission Vision
Chile
South Africa New Zealand Argentina * Benefit the World Achieve * To become a world-class supply
Success Together chain service company
Core Values Corporate Spirit
Corporate
* V alue creation-centered Culture * Grassroots Spirit Devotion
to Undertakings
Main Business
5 Concepts 5-star Behaviors
We are committed to becoming a world-class supply chain service company and focus on providing one-stop supply * R isks First * A ssume Responsibility and Take
chain solutions for manufacturers. Our core services include procurement and supply of raw and auxiliary materials * B uilding a Firm Foundation in Action
distribution of finished goods shearing and processing logistics services supply chain finance and information the Market * Be Pragmatic and Efficient
consultations. We pursue ongoing self-innovation to ensure supply chain's stability and efficiency promote industry * Cooperation for Win-win Results * Be Customer-oriented
development in a more efficient and sustainable way and jointly grow and create value with customers. * Innovative Development * Be Open and nclusivev
* Two-wheel Drive * Be Pleasant and Straightforward
Commodity Business Commodity Logistics Production and Manufacturing
Including metal minerals Including integrated Including shipbuilding
agricultural products logistics agricultural mineral processing and
energy chemicals and products logistics and grease processing etc.new energy etc. railway logistics etc.
1This map is indicative in nature and is intended only for an overview of a specific area
7 82023 Environmental Social and Corporate Governance (ESG) Report Xiamen Xiangyu Co. Ltd.
Milestones of 2023 Data-Driven 2023 : A Performance Overview
Forbes USA Fortune China
Revenue amounted to Net profit attributable to shareholders of
1323th RMB 459.035 billion the listed company was RMB 1.574 billion
Top 500
among Forbes Global 2000 Listed
Chinese-Listed Companies 2023
Companies 2023 Business volume of up 12.53% Business volume of up 15.33%
metal minerals was year on year agricultural products was year on year
131.27 million tonnes 20.35 million tonnes
Business volume of up 15.32% Business volume of new Economic up 71.09%
Performance energy chemicals was year on year energy was year on yearChina Federation of Logistics & Purchasing China Federation of Logistics & Purchasing 73.17 million tonnes 0.37 million tonnes
2nd China Logistics
among China's Top 50 Logistics ESG Model Enterprise Obtained special credit of RMB 10.6 billion for customers through "Yu Lian Tong Digital Supply
Enterprises 2023 2023 Chain Service System"
Held 6 general where 27 proposals Board of Directors where 55 proposals
meetings of were considered and held 15 meetings were considered and
China Enterprise Confederation China Enterprise Digital Warehousing Branch of China Federation of shareholders approved approved
Directors Association Logistics & Purchasing
Board of Supervisors where 28 proposals
First Prize Advanced Unit Governance held 8 meetings were considered and
of 2022-2023 National Corporate of Building China's Digital Warehousing Performance approved
Culture Outstanding Achievements Standard System 2023
Invested RMB 6.75 million Saved 16406 Had a total Employed 7 disabled
in energy conservation and cubic meters of of 8565 74 veterans employees
emission reduction water annually employees
zhaopin.com Institute of Social Science Survey of Invested RMB 4.89 Coverage rate of physical examination Carried out 43
Peking University million in work safety for positions with occupational volunteer activities for
disease risks was 100% employees
China's Best Employer Social Performance
2023
Total tax paid: RMB 3228.61 million
9 102023 Environmental Social and Corporate Governance (ESG) Report Xiamen Xiangyu Co. Ltd.
Sustainable Development Management Communication with Stakeholders
We have maintained active communication with stakeholders to identify and evaluate key issues that may affect our
To become a world-class supply chain service company we have proactively responded to the 17 Sustainable reputation operation results and sustainable development so as to enhance the transparency and reliability of this
Development Goals (SDGs) of the United Nations. We have improved our performance in environmental protection Report.use of resources and social responsibility by utilizing innovative technologies such as digitalization and Internet of
Things and shared our direction and achievements in achieving SDGs with stakeholders through regular information Key Stakeholders Expectations and Demands Our Response
disclosure.·Expand market to achieve business growth
·B usiness Expansion · Maintain steady operation to ensure continuous profitability and
ESG Governance System · Economic Returns dividendsInvestors
·N ormative Governance · Keep high-standard governance to ensure integrate accurate and
·S ustainable Development complete information disclosure
· Achieve balanced development and contribute to social well-being
We have established a sound ESG management structure under which the Strategy (Investment and Development)
Committee of the Board of Directors and its subordinate ESG Executive Committee are the supervision and guiding
· Stable Supply of Goods · Ensure the continuity and reliability of the supply chain
bodies the ESG Management Office is the overall management body for daily ESG work and subsidiaries are the Customers · Sales Expansion · Explore diversified markets and enhance distribution capabilities
execution bodies. Each of subsidiaries and functional departments has appointed ESG specialists as the basic unit of
ESG management to effectively integrate ESG into our daily operation activities. · Protection of Rights and
·S afeguard the legitimate rights and interests of employees
Interests
· Create a safe and healthy working environment
Employees · Occupational Health and Safety
ESG Management Structure of Xiamen Xiangyu ·P rovide a platform for continuous learning and career growth· Training and Promotion
· Ensure fair remuneration and comprehensive benefits
·R emuneration and Benefits
Board of Directors ·P erformance in Good Faith ·A dhere to the spirit of the contract and perform the contract
Strategy (Investment and Development) Committee Suppliers ·O pen Fair and Just according to law
· The top governing body for ESG issues of the Company Procurement ·R egulate the procurement system for transparent procurement
· Responsible for the formulation review and approval of ESG policies strategies and
objectives · Operation Compliance
· T o monitor and review the Company's policies management performance and · Paying Taxes in Accordance with · Abide by regulations and strictly follow industry best practices
progress on ESG issues the Law ·G ive back to society and fulfill statutory tax obligations
Governments and
· Compliance with Business · Abide by high standards of business ethics with moral guidance
Regulators
ESG Executive Committee Ethics ·M otivate ourselves to drive regional economic vitality
(Senior management members of the Company) · Driving Economic Development · Create jobs and help local employment
· Boosting Employment
· T he decision-making function as authorized by the Board of Directors
responsible for reporting and advising the Board of Directors
· T o identify risks and opportunities related to the Company's sustainable · Performance in Good Faith · Adhere to the spirit of the contract and perform the contract
development conduct research analysis and risk assessment on the Company's Partners ·B usiness Ethics and according to law
ESG issues guide and supervise the formulation and implementation of the Transparency ·A dvocate ethics and commit to information transparency
Company's ESG policies and objectives and submit them to the Board of
Directors for consideration and approval ·Community Development · Engage in the community development to promote local prosperity
· T o review and report to the Board of Directors on the ESG reports of the Company Community ·Environmental Protection ·A dvocate green action to protect the future of the earth
·Giving Back to Society · Contribute to realizing the common prosperity of the society
ESG Working Group
(Key members of relevant functional departments)
·Disclosure of Business · Make transparent communication and share business
· I ts members are composed of relevant personnel from relevant functional The Public and Progress progress in a timely manner
departments and subsidiaries of the Company Media · Assuming Environmental ·T ake responsibility for coordinating environmental
· R esponsible for providing support to the ESG Executive Committee implementing and Social Responsibilities protection with social and economic development
ESG initiatives and assisting the ESG Executive Committee in its work
11 122023 Environmental Social and Corporate Governance (ESG) Report Xiamen Xiangyu Co. Ltd.
Material Issues After going through the above material issues identification process we make the following matrix of material issues:
Matrix of Material Issues of Xiamen Xiangyu
We analyze material ESG issues through communication with stakeholders to further identify the focus of our ESG
work. We preliminarily select material issues with reference to the ESG issues focused by MSCI GRI Standards issued
by the Global Sustainability Standards Board (GSSB) and ESG disclosure of our peers and comprehensively identify
issues related to our environmental social and governance impact and impact on the evaluation and decision-
1213
making of stakeholders.
109
We obtain feedback from stakeholders through questionnaires and get the questionnaire results through the 4 1 17
data from the material issues identification process. Then we prioritize the importance of material issues by two 15
7
dimensions i.e. "importance to stakeholders" and "importance to Xiamen Xiangyu" and finally make a matrix of 14 18
material ESG issues based on our development strategy and plan by analyzing international and domestic social
8
responsibility standards as well as the policies of national and local governments. This matrix provides an important 5
basis for our future ESG management. 3
6
Material Issues Identification Process of Xiamen Xiangyu 11
2
16
Communication with Stakeholders
· Maintain regular communication with investors customers governments regulators employees and
other stakeholders and record the demands of various stakeholders. High Very high
Importance to Xiamen Xiangyu
Identification of Issues List of Material Issues of Xiamen Xiangyu
· I dentify our actual or potential impact on the economy environment and society based on our Corporate Governance
businesses as well as communication with stakeholders. Eighteen ESG issues were preliminarily Environmental Issues Social Issues Economic IssuesIssues
selected with reference to GRI standards and other sustainable information disclosure guidelines MSCI
1 Management of 4 Labor Management 12 Corporate 17 Profitability
ESG rating and other evaluation systems and ESG disclosure of our peers. Environmental
5
Emergencies Employee Training
Governance 18 Leading
and Development 13 Risk Management Industry
2 Green Logistics
6 Occupational 14 Interests of Investors Development
Evaluation of Issues 3 Energy Conservation Health and Safety
15
and Emission Business Ethics7 Customer Services
· Get feedback from stakeholders through questionnaire surveys which cover two dimensions namely Reduction 16 Digitalization and
"importance to stakeholders" and "importance to Xiamen Xiangyu". 8 Supply Chain Informatization
Management
9 Technology
Innovation
Results of Issues 10 Data and Privacy
Security
· B ased on the results of questionnaire surveys prioritize issues upon consultation with third parties
11 Rural Revitalization
while taking account of our actual development strategy industry key issues and peer performance and Common
and then develop the final matrix of material issues. Prosperity
1314
Very
high
Importance to StakeholdersBenefiting All Embracing Low- Empowering Smart Improving Quality
with Robust Carbon Style for a Xiangyu through through Steady Fostering Talent
Cultivating
Partnerships for
Governance Green Xiangyu Digitalization and Innovative for HarmonyDevelopment Joint Achievement
2023 Environmental Social and Corporate Governance (ESG) Report
01 Benefiting All with Robust Governance
We constantly enhance our governance and synchronize our corporate strategy with national initiatives to build a solid
foundation for sustainable development. We provide clear accurate and timely disclosures to ensure efficient and smooth
communication with investors. We also fortify our risk management uphold business ethics and maintain a strict stance
against corruption driving our company's stable progress.
15 16Benefiting All Embracing Low- Empowering Smart Improving Quality
with Robust Carbon Style for a Xiangyu through through Steady Fostering Talent
Cultivating
and Innovative for Harmony Partnerships for Governance Green Xiangyu Digitalization Development Joint Achievement
2023 Environmental Social and Corporate Governance (ESG) Report
Corporate Governance Organizational Structure of Xiamen Xiangyu
We constantly improve our corporate General Meeting of
governance in strict accordance with Shareholders Party Committee
the Company Law the Securities Law
the Code of Corporate Governance for
Listed Companies and other relevant
laws and regulations. We have organized
o u r m a n a g e m e n t a n d r e l e v a n t
personnel to study the requirements Remuneration and
from regulations on the reform of the Appraisal Committee
independent director system in 2023 Board of Supervisors
("New Regulations on Independent
Board of Directors Audit Committee
Directors") and comprehensively
reviewed our management system
based on our actual s ituation. To Strategy (Investment and
e f f e c t i v e l y i m p l e m e n t t h e N e w Development) Committee
Regulations on Independent Directors
w e c o m p r e h e n s i v e l y r e v i s e d s i x
r e g u l a t i o n s i n 2 0 2 4 i n c l u d i n g Secretary of the
Working Regulations for Independent Board
Directors Implementation Rules for
the Audit Committee of the Board of Risk Management Senior Management Qualification Appraisal
Directors Implementation Rules for the Committee Committee
Remuneration and Appraisal Committee
of the Board of Directors Rules of Investment Review General Manager Safe Production
Procedures for the Board of Directors Committee (Executive Team) Committee
Regulations for the Management of
Raised Funds of the Company and the Digital Transformation Budget Control Committee Committee
Articles of Association.Information
Technology Administration
Strategic Logistics Operation Risk
Center Finance Center Investment Management Development Management Center Center Center Center Center
1718
Commission for Office of Discipline
Discipline Inspection Inspection and Supervision
Office of Party Committee
Legal Affairs Dept.Audit Dept.Risk Control &
Compliance Dept.Internationalization Dept.Industrial Research Dept.Supply Chain
Development Dept.Operation Management
Dept.Logistics Management
Dept.Logistics Audit Dept.Construction
Management Dept.Safety Supervision Dept.Human Resources Dept.Investment
Development Dept.Investment
Management Dept.Securities Dept.Fund Dept.Accounting Dept.Finance Dept.Administration Dept.General Manager Office
Architecture
Management Dept.Data Application Dept.Application
Management Dept.Office of Digital
TransformationBenefiting All Embracing Low- Empowering Smart Improving Quality Cultivating
with Robust Carbon Style for a Xiangyu through through Steady Fostering Talent and Innovative for Harmony Partnerships for Governance Green Xiangyu Digitalization Development Joint Achievement
2023 Environmental Social and Corporate Governance (ESG) Report
We define the responsibilities on election convention and voting through a sound governance structure. In 2023 the Key Performance1:
general meeting of shareholders the Board of Directors and the Board of Supervisors of the Company performed
their duties in accordance with the law and ensured the normalization and transparency of corporate governance
Indicator Xiamen Xiangyu Industry Average
thus providing a solid guarantee for the high-quality development of the Company. During the reporting period no
major violation of laws and regulations occurred on the part of the Company demonstrating our firm commitment
Number of Directors 9 8.33
to operation compliance and social responsibility.Percentage of Independent
Responsibilities of Three Governance Bodies of Xiamen Xiangyu 33.33% 35.85%Directors
Percentage of Female Directors 11.11% 9.43%
* We have a code of conduct for our controlling shareholders in place. Our controlling shareholders
exercise their rights as investors through the general meeting of shareholders in accordance with Average Length of Tenure of 3.56 years 3.30 years
the law participate in and supervise our decision-making by assigning directors and supervisors in Directors
compliance and do not interfere in our legal decision-making and specific production and operation Average Age of Directors 56.33 years 52.63 years
activities. The Company and its controlling shareholders are independent of each other in terms of
personnel assets finance institutions and business and the board of directors board of supervisors Background of Board Members Logistics trade finance law and other fields --
and internal functional departments of the Company operate independently.* D uring the reporting period we held 6 general meetings of shareholders where 27 proposals were Number of Supervisors 3 (including 1 employee supervisor) 3.67 (including 1.33 employee supervisors)
considered and approved.* T he board of directors of the Company safeguards the legitimate rights and interests of the
Company and all its shareholders in strict compliance with the Articles of Association and the
Rules of Procedures for the Board of Directors. The Board of Directors consists of the Remuneration
and Appraisal Committee the Audit Committee and the Strategy (Investment and Development)
Committee each of which provides consultation and advise to Board of Directors' decision making.* During the reporting period we held 15 meetings of the Board of Directors where 55 proposals were
considered and approved.* T he board of supervisors of the Company supervises the convening procedures of and the matters to
be resolved at the general meeting of shareholders and the Board of Directors the implementation of
the resolutions passed at the general meeting of shareholders by the Board of Directors the financial
situation of the Company and the performance of duties by the directors and senior management of
the Company in strict accordance with the Articles of Association and the Rules of Procedures for the
Board of Supervisors.* D uring the reporting period we held 8 meetings of the Board of Supervisors where 28 proposals were
considered and approved.Xiamen Xiangyu was Selected as the 2023 Best Practice Case of Corporate Governance by China Association for Public Companies
1Note: The industry indicator is constructed by selecting 6 representative listed companies (including CITIC Metal C&D WZ Group
Xiamen ITG Xiamen Xiangyu and Zheshang Development) in the field of commodity supply chain service in the A-share market as
industry portfolio and obtaining relevant data from their 2023 annual report for calculation of indicator value.
1920
General Meeting of
Shareholders Board of Directors Board of SupervisorsBenefiting All Embracing Low- Empowering Smart Improving Quality
with Robust Carbon Style for a Xiangyu through through Steady Fostering Talent
Cultivating
Partnerships for
Governance Green Xiangyu Digitalization and Innovative for HarmonyDevelopment Joint Achievement
2023 Environmental Social and Corporate Governance (ESG) Report
The Remuneration and Appraisal Committee under the board of directors of the Company performs its duties in Prevention of Conflicts of Interest
accordance with the Implementation Rules of the Remuneration and Appraisal Committee of the Board of Directors
of Xiamen Xiangyu Co. Ltd. and is responsible for formulating the standards for the appraisal of directors and senior
management conducting the appraisal formulating and reviewing the remuneration policies and plans of directors According to the Articles of Association directors supervisors and senior management shall bear the duty of loyalty
and senior management and making recommendations to the Board of Directors on the formulation or change of to the Company and shall not without the consent of the general meeting of shareholders take advantage of their
equity incentive and stock ownership plans. positions to seek business opportunities for themselves or others that should belong to the Company or operate
businesses similar to those of the Company for themselves or others so as to ensure the fairness and transparency
Shares Held by Directors and Senior Management of the Company of the decision-making of the Company. At the same time the Company has formulated the Working Regulations for
Independent Directors requiring independent directors to supervise the potential major conflicts of interest between
Name Title(s) Shares Held at the End of 2023 the Company and its controlling shareholders actual controllers directors and senior management in order to urge
Deng Qidong Chairman 975500 the Board of Directors to make decisions in line with the overall interests of the Company and protect the legitimate
rights and interests of minority shareholders.Qi Weidong Vice Chairman and General Manager 1222800
Zhang Shuili Director 210000
Lin Junjie Director 0 Information Disclosure and Investor Relations
Wu Jie Director 0 Management
Wang Jianli Director 0
Xue Zuyun Independent Director 0 Information Disclosure
Liu Bin Independent Director 0
Liao Yixin Independent Director 0 We disclose our material information in accordance with laws and regulations departmental rules normative
documents of the stock exchange and the Articles of Association . We have developed the Information Disclosure
Su Zhuquan Deputy General Manager 0 Management System to improve the management and quality of our information disclosure. The information
Cheng Yiliang Deputy General Manager 940500 disclosed by us is true accurate and complete and our shareholders can get equal access to our material
information. We continue to strengthen the management of insider information and organize the registration of
Fan Chengyang Deputy General Manager 935400 insiders in an orderly manner so as to effectively prevent insider trading and protect the legitimate rights and
Chen Daizhen Deputy General Manager 1140000 interests of investors.Zheng Luyu Deputy General Manager 855000 Key Performance
Liao Jie Secretary of the Board 570000
Lin Jing Financial Controller 426850 During the reporting periodwe disclosed 84 reports including 4 regular
reports (Chinese and English versions disclosed simultaneously) and 80 interim
Related-party Transactions Management announcements.
To regulate related-party transactions we have formulated the Related-party Transaction Management Regulations
which clearly stipulates the definition decision-making disclosure punishment and other matters of related-party
transactions and defines the responsibilities and obligations of the directors supervisors senior management Investor Relations Management
shareholders and other personnel of the Company. We perform related-party transaction procedures in strict
compliance with the Related-party Transaction Management Regulations. Related directors and related shareholders
shall abstain from voting in the review procedures of the board of directors and the general meeting of shareholders.We summarize and disclose by classification the actual performance of daily related-party transactions in our In accordance with the Company Law of the People's Republic of China the Securities Law of the People's Republic
annual report and semi-annual report. We also stipulate matters related to related-party transactions in the of China the Working Guidelines for the Relationship Between Listed Companies and Investors the Articles of
Regulations for Management of Raised Funds to ensure that related-party transactions are voluntary equal fair Association and other relevant laws regulations rules and systems we have formulated the Investor Relations
open legal and reasonable and are in line with the interests of the Company and its shareholders. Management System of Xiamen Xiangyu Co. Ltd. in light of our actual situation.
21 22Benefiting All Embracing Low- Empowering Smart Improving Quality Cultivating
with Robust Carbon Style for a Xiangyu through through Steady Fostering Talent and Innovative for Harmony Partnerships for Governance Green Xiangyu Digitalization Development Joint Achievement
2023 Environmental Social and Corporate Governance (ESG) Report
Channels and Contents of Communication Between Xiamen Xiangyu and Investors Key Performance
Channels of Communication Content of Communication During the reporting periodwe organized 1 offline performance briefing 2 online
performance briefings 1 Open Day activity for investors and 1 activity for minority
* A nnouncements and documents * D evelopment strategy of the Company investors and participated in 1 online collective reception day under the jurisdiction
* O fficial website of the Company * O peration and management information of of Xiamen and 2 special telephone conferences;
* New media platform the Company we participated in 31 strategy meetings organized by major sellers and conducted
* SSE E-interactive * Environmental social and governance face-to-face communication with more than 300 mainstream investment
* I nvestor hotline information of the Company
* Facsimile * C ultural development of the Company institutions. We also received more than 50 researches from more than 200
* Email * W a y s c h a n n e l s a n d p r o ce d u r e s f o r institutions (on-site or online).* I nvestor education base exercising shareholders' rights etc.* Investors demand processing information
* Risks and challenges that the Company is
facing or may face
* Other relevant information of the Company Open Day for Investors - On-site Research of Xiangyu Agricultural by Investment Institutions
In March 2023 18 investment institutions conducted comprehensive on-site research on our subsidiary
Key Performance Xiangyu Agricultural in Heilongjiang. The research team not only listened to the thematic lectures of our
leaders on our business development but also had in-depth interaction with the third-party customer Wens
Foodstuff and cooperative farmers. In addition the research team also visited the grain purchase and storage
During the reporting periodwe answered more than 300 calls from investors base of Suihua Xiangyu in the mode of "Smart Grain Enterprise" and personally experienced the innovative
100 50 practice of Xiangyu Agricultural in the supply chain service of agricultural industry.handled more than emails of investor relations and responded to
questions from investors on SSE E-interactive with a response rate of 100%. Moreover the representatives of investment institutions also communicated face to face with front-line
farmers during the research to deeply understand the agricultural industry-level supply chain service system
of Xiangyu Agricultural connecting the entire industrial chain.Communication with Investors
Attaching great importance to communication with investors we have established reliable and transparent
communication channels to enhance our image and reputation. We carry out investor communication activities on
a regular basis to ensure timely and accurate transmission of information to investors and answer questions and
reduce the risk of information asymmetry for investors. We also give full consideration to investors' opinions and
suggestions when formulating future development strategies and business decisions to ensure that our actions are
consistent with market trends and investors' expectations.Investment Institutions Visited the Grain Collection of Suihua Xiangyu A Subsidiary of Xiamen Xiangyu
23 24Benefiting All Embracing Low- Empowering Smart Improving Quality through Steady Fostering Talent Cultivating with Robust Carbon Style for a Xiangyu through
Governance Green Xiangyu Digitalization and Innovative for Harmony
Partnerships for
Development Joint Achievement
2023 Environmental Social and Corporate Governance (ESG) Report
2022 and 2023 Q1 Performance Briefing
In May 2023 2022 and 2023Q1 Performance Briefing
of Xiamen Xiangyu was held in Shanghai which
attracted more than 200 institutional investors
shareholders industry analysts and media workers Panorama Network (www.p5w.net) Securities Times
to witness the comprehensive review and panoramic
outlook of Xiamen Xiangyu for the commodity 2022 Investor Relations 14th Investor Relations
supply chain industry. This briefing introduced our Gold Award Tianma Award
"Yu Lian Tong" digital supply chain service system
and agricultural industry-level supply chain service
system and invited a number of industrial customers
and analysts such as Haid Group Tongwei Chinalco China Zhuoyue IR
and Sanyuan Paper to have in-depth exchanges 7th Best Capital Market Communication Award
and share their experience and feelings of using our
supply chain services. 2022 and 2023 Q1 Performance Briefing of Xiamen Xiangyu 7th Best ESG Rising Star Award
"I AM A SHAREHOLDER" Activity of Shanghai Stock Exchange for Minority Investors - A Visit to Xiamen Xiangyu
Risk Management
On August 22 2023 Shanghai Stock Exchange and
Huafu Securities organized the "I AM A SHAREHOLDER"
activity in which 24 minority investors and industry As a key player of commodity supply chain services in China Xiamen Xiangyu has always placed compliance
analysts of Huafu Securities were invited to pay a visit to at the forefront of risk management and guided our business activities with the concept of "risk first". With the
Xiamen Xiangyu. During the activity Liao Jie secretary dynamic changes in the economic environment and regulatory policies and the further implementation of our
of the board of directors of Xiamen Xiangyu introduced internationalization strategy we are constantly improving our risk management system to ensure our stable
our main business business model and future strategic development in the complex and volatile market. We strengthened compliance management to reduce risks by
plans to investors and analysts present in detail. intensifying risk control measures. We continuously innovated in compliance to cope with challenges. This not only
Investors also visited our corporate culture space and ensures the safe operation of our assets but also enhances the anti-risk capability of our industrial and supply
inquired about our performance growth points future chains. All of our business units always maintain awe of compliance management and carry out every step of
"I AM A SHAREHOLDER" in Xiamen Xiangyu development plan and other questions. operation in accordance with the standards so as to ensure the long-term sustainable development of the Company
and create greater value for shareholders and society.Risk Management System
Awards About Investor Relations
We are optimizing the risk management strategy to build a comprehensive risk management system that is the "one
body two wings and three engines" mode to ensure the steady development of business. With a focus on this core
We focus on investor relations and market capitalization management and constantly reinforce our corporate system we optimized our internal control manual refined our basic management process strengthened compliance
governance standards and operation compliance. Our efforts have been recognized by the capital market as our management measures further consolidated our risk management foundation and improved our capability to
shares have been included in the sample stocks of CSI Dividend SSE 380 Shanghai Stock Connect FTSE Russell identify evaluate and respond to potential risks. On this basis we are able to respond to market changes with
and Belt and Road Index. During the reporting period our achievements were also widely recognized by social agility while ensuring the compliance and efficiency of business operations providing solid support for achieving
organizations and we received the following honors and awards: sustainable development goals.
25 26Benefiting All Embracing Low- Empowering Smart Improving Quality Cultivating
with Robust Carbon Style for a Xiangyu through through Steady Fostering Talent and Innovative for Harmony Partnerships for Governance Green Xiangyu Digitalization Development Joint Achievement
2023 Environmental Social and Corporate Governance (ESG) Report
"One Body Two Wings and Three Engines" Risk Management System of Xiamen Xiangyu Currently we continue to strengthen our internal audit mechanism by carrying out independent audit through
close cooperation between the audit department and functional departments. We have built a three-dimensional
and top-down risk prevention and control system by training full-time and part-time internal control personnel for
subsidiaries and branches and promoting comprehensive self-examination and self-correction. Our internal audit
* T he internal control construction cycle of "Risk List - Internal Control Manual - Internal Control system is divided into the following three levels: the business unit as the first line of defense is responsible for
Effectiveness Evaluation - Internal Control Assessment" is taken as "One Body". immediate risk identification; the functional management department as the second line of defense is responsible
for providing policy supervision; the audit department and the Office of Discipline Inspection and Supervision as
the third line of defense are responsible for ensuring the independence and effectiveness of audit. In accordance
with the internal control requirements for listed companies we engage external professional institutions to conduct
* T he basic management cycle of "Normative Compilation - Operation Manual - Release of internal control audits on a regular basis and have obtained standard unqualified audit reports over the years. This
Compilation Manual - Publicity and Education of Compilation Manual -Qualification Examination demonstrates Xiamen Xiangyu's high standards and effective practices in internal control and risk management.- Regular Inspection and Correction" and the compliance system cycle of "Compliance Risk
Identification and Assessment - Planning to Solve Compliance Risks and Achieve Goals - Plan
Implementation and Compliance Risk Control - Performance Evaluation and Compliance Report - Risk Identification and Management
Management of Non-Compliance and Continuous Improvement" are taken as "Two Wings".During the reporting period we proactively organized comprehensive risk assessment by risk management
functional departments and investors from time to time to timely discover and deal with potential risks. Our risk
assessment mechanism follows three key steps namely risk identification risk analysis and risk evaluation to
ensure accurate identification of risk points that may cause significant or general losses to the Company.* The risk control digitalization risk control empowerment and risk control organizational capacity
building are taken as "Three Engines". Our risk assessment mechanism characterized by efficiency and systematization can effectively identify classify
and prioritize potential risks and formulate and adopt response measures accordingly. For example to prevent and
control corruption risks we have taken more measures to integrate the prevention and control of corruption risks
In 2023 we optimized our risk control structure customized full-time and part-time risk control personnel according into our entire business risk management system. We have developed a special Manual for Prevention and Control
to the scale of business units and complexity of business forms and further strengthened the risk management of Corruption Risks under which we identified and screened 208 potential corruption risk points which is conducive
responsibilities of each business unit to ensure the effective implementation of risk control measures. Through the for us to understand possible risk areas more clearly and take preventive measures. In addition we have carefully
establishment of an information transmission mechanism our responsible departments and business units regularly supervised nearly 800 middle-level and above managers and their specific associates especially in key areas such
feedback the risk control progress and results to the Risk Management Center and communicate information in as marriage business real estate and investment. By establishing and implementing this supervision mechanism
a timely manner. The Risk Management Center includes the duty-performance of the risk control heads and risk we have transformed from traditional "passive investigation" to "self-examination and self-correction" which not
control contacts of business units into the scope of evaluation and assessment and strengthens the implementation only enhances the initiative and foresight of our risk management but also helps us build a more transparent and
of risk control requirements through various measures in order to improve the quality of management. incorrupt corporate culture.Organizational Structure for Risk Control Management of Xiamen Xiangyu Risk Identification Process of Xiamen Xiangyu
Risk Management * Identify whether there are risks exist in each business unit important business activity
Committee Risk and key business processes of the Company
General Manager of Identification
Subsidiaries
Risk Control * Clearly define the identified risks and their characteristics and analyze and describe the
Risk Control Heads Responsible Risk
Risk Management possibility and conditions of risk occurrence
Department Analysis
Center
Risk Control Contacts (Functional Risk
Control Partner)
Risk * Assess the impact of risk on the achievement of corporate goals etc.Assessment
Full-time Post in Part-time Post in Risk Control
Class A and Class B Class C Business and Compliance
Legal Affairs Audit Department
Business Units Department DepartmentUnits
2728
One Body Two Wings Three EnginesBenefiting All Embracing Low- Empowering Smart Improving Quality
with Robust Carbon Style for a Xiangyu through through Steady Fostering Talent
Cultivating
Governance Green Xiangyu Digitalization and Innovative for Harmony
Partnerships for
Development Joint Achievement
2023 Environmental Social and Corporate Governance (ESG) Report
Our risk assessment methodology focuses on two key dimensions i.e. "probability" and "impact" to Risk Control Workshop
ensure comprehensive identification and assessment of potential risks. The "probability" evaluation
criterion is mainly based on historical data including the frequency and duration of similar events while
the "impact" evaluation criterion comprehensively judges the potential impact of risk events on the In May 2023 we launched Phase I risk control workshop for risk control contacts of all business units. The
financial status reputation employees and market of a company. Based on the above criteria we have workshop with 50 risk control personnel attended aims to enhance the overall standard and efficiency of our
built a comprehensive risk map covering 18 main risks including but not limited to customer credit risk risk management. The training covers numerous key areas including evaluation methods for internal control
cargo right risk occupational moral risk and business risk etc. We dynamically identify and regularly effectiveness case introduction review and practice of abnormal cases system deconstruction and key-point
update the list of key risks in light of changes in the external environment and our own management connection and effective service methods for the duty-performance of functional risk control etc.requirements. In 2023 we identified five key risks and formulated corresponding management measures
to reduce uncertainty and potential losses.Key Risks and Management Measures of Xiamen Xiangyu
Significant Risks Management Measures
(1) Clarify access standards for various types of customers;
(2) M atch different license schemes and management requirements for customers of different risk Photo of Students of Phase I Risk Control Workshop of Xiamen Xiangyu
Customer categories;
(3) Dynamically track customers including but not limited to negative public opinion tracking abnormal
Credit Risk information management margin management etc.; We have carried out comprehensive internal and external compliance training to ensure that all of our
(4) Make clear the overdue disposal plan and increase the disposal efforts led by the person in charge of the
business unit. employees are fully aware of and strictly abide by relevant laws and regulations enhance their ability
to identify and prevent legal risks in their daily work and then provide guarantee for the legal and
(1) Improve the access mechanism for logistics suppliers; compliant operation of the Company.
(2) Adhere to the principle of warehouse inspection without fixed person time and post;
Cargo Right Risk
(3) Strengthen logistics document management;
(4) Insure in time. Compliance Month Carnival
(1) Identify high-risk groups and strengthen management;
Occupational
(2) Strengthen the publicity of cases and other ideologies; In October 2023 Xiamen Xiangyu launched Compliance Month Carnival for all employees with thousands
Moral Risk
(3) Strengthen punishment and warning publicity of typical cases. of employees participated. Through colorful displays interactions and professional lectures our employees
deeply understood regulations and requirements and enhanced their compliance awareness which laid a
(1) Improve the access mechanism for new businesses; solid foundation for jointly building a healthy and transparent corporate governance environment.
Business Risk (2) Strengthen the management of regular review of new businesses;
(3) Strengthen team capabilities including risk management research operation and disposal capabilities.
(1) Establish market analysis research and tracking mechanism and strengthen review management;
Price Risk (2) Regulate derivatives operation hedging and unilateral operations;
(3) Strengthen the implementation of operation plans.
Risk Management Training
During the reporting period we launched risk control workshops aiming to build a stronger and more adaptable risk
management team through education and training. The improvement of employees' professional literacy and risk
management skills helps us to identify and manage risks more effectively and ensure our steady operation and long- Photo of Compliance Month Carnival of Xiamen Xiangyu
term development.
29 30Benefiting All Embracing Low- Empowering Smart Improving Quality Cultivating
with Robust Carbon Style for a Xiangyu through through Steady Fostering Talent and Innovative for Harmony Partnerships for Governance Green Xiangyu Digitalization Development Joint Achievement
2023 Environmental Social and Corporate Governance (ESG) Report
Compliance Management Forum Tax Risk Management
In October 2023 Xiamen Xiangyu held a compliance management forum for company leaders senior executives
of each business unit financial controllers risk control personnel and interested employees attracting more We take tax risk as one of our priorities in risk management and are committed to managing tax risks in a closed
than 2300 online and offline participants. The forum specially invited external research institutions to share and loop through the process of "prior analysis compliance with laws and regulations risk self-inspection review and
exchange topics on compliance management and risk prevention of supply chain business. Representatives from rectification".state-owned assets audit and other regulators also attended the forum to give some guidance. Through case
analysis theme discussion and other forms employees have a more comprehensive and in-depth knowledge of
the risk control compliance of companies in the supply chain sector. Tax Risk Management Measures of Xiamen Xiangyu
We empowered by the tax capacity building team and backed by the diligent duty-
performance of company-wide tax partners at all levels closely monitor the changes
in tax laws profoundly analyze the impact of such changes on our tax-related
business and initiatively empower business departments hence strengthening the
control of tax risks from the source.In addition to the annual tax self-inspection completed by companies at all levels
we have organized several tax self-inspections or examinations for tax-related
scenarios such as withholding and payment of non-trade foreign exchange payment
tax declaration normalization of tax accounting and additional credit of VAT to
comprehensively investigate risk points formulate the rectification list and urge its
implementation item by item
Compliance Management Forum of Xiamen Xiangyu
We push forward with tax regulator-enterprise collaboration by making an in-
depth analysis of tax risks via the tax collaboration case database and refining tax
management measures through self-examination
Tax Management
Tax Compliance Training
Tax Compliance Management
We strive to foster a risk culture and enhance the awareness of tax-related risks of all our employees through the
We comply with the applicable tax laws regulations and rules of the place where we operate in our daily operations. training and publicity of our conventional policies on tax risks. In 2023 we held 35 tax compliance training sessions
We have formulated the Tax Management System which aims to regulate the tax management process reasonably and held quarterly tax tests on a regular basis. The training sessions cover various topics including interpretation
control tax risks and prevent tax irregularities. Through this system we have clarified the division of responsibilities and training of domestic and foreign tax policies sharing of tax practices and risk prevention of key tax-related
and operation procedures of tax work specified specific steps for tax compliance review and refined the measures issues in each sector. 39 employees participated in the regular training sessions held through the tax capacity team
to control tax risks. In addition we proactively respond to changes in tax laws and requirements of regulatory with the average test qualification rate being more than 85%. In October 2023 we organized a tax publicity activity
authorities with regular tax risk self-check and continuous review optimization of our tax management system to be for the Risk Control Compliance Month where we sorted out tax knowledge closely related to our employees and
in line with the latest laws and regulations. In 2023 the total amount of tax paid by the Company was 3228.61 million business made brochures and launched Q&A activities with an aim to reinforce the risk prevention awareness of all
RMB with no tax violations occurred. our employees for tax issues.
31 32Benefiting All Embracing Low- Empowering Smart Improving Quality
with Robust Carbon Style for a Xiangyu through through Steady Fostering Talent
Cultivating
Partnerships for
Governance Green Xiangyu Digitalization and Innovative for HarmonyDevelopment Joint Achievement
2023 Environmental Social and Corporate Governance (ESG) Report
Business Ethics The 3rd Anti-corruption Culture Development Education Month
From March to April 2023 our Commission for Discipline Inspection carried out anti-corruption education
We are committed to developing a high-standard occupational ethics framework. For this purpose we have activities centering on "Three Ones"2 and intensified comprehensive and strict corporate governance
formulated several regulations such as Occupational Moral Risk Governance Regulations and Anti-Fraud Management with perseverance and persistence striving to create a clean and aggressive political ecology. We also
Regulations to regulate employees' behaviors and strengthen management of their moral risk in a bid to cultivate a stepped up efforts on anti-corruption culture development by visiting the education base on the history
loyal and honest team and protect the interests and reputation of the Company. of revolution planning the handicrafts production activities with the theme of anti-corruption and
holding exchanges on family style and education books.To improve the effectiveness of our supervision mechanism we have formulated the Interim Measures for
Acceptance of Complaint Reporting and Disposal of Problem Clues. The measures clarify the classification of
complaint reporting such as accusation criticism suggestion and appeal and ensure that discipline inspection
and supervision institutions at all levels can handle each complaint in a serious and normative manner resolutely
safeguard the transparency and fairness of supervision and effectively protect the privacy rights and interests of
whistleblowers.Meanwhile we have innovated on measures to prevent and control corruption risks including formulating corruption
risk prevention and control manual and launching occupational ethics self-examination and self-correction system
to escort the steady operation of our supply chain business. Anti-corruption Education Activities of Xiamen Xiangyu
Complaint Acceptance Process of Xiamen Xiangyu
Anti-corruption Training With the Theme of "Adhering to the Bottom Line of Discipline and Ensuring the
Safety of Duty Performance"
In June 2023 we carried out an anti-corruption training with the theme of "Adhering to the Bottom Line
of Discipline and Ensuring the Safety of Duty Performance" to enhance risk awareness and build a solid
defense line of anti-corruption which attracted about 800 employees. The training was conducted in various
forms such as case analysis and interactive discussion so that employees can learn and reflect in the actual
Acceptance Submit for Processing Disposal Feedback situation and gain a deeper understanding of anti-corruption awareness and occupational code of conduct.Approval
Key Performance
During the reporting periodwe held 15 anti-corruption training sessions with
2000 employees attended and 788 employees signed the Anti-corruption
Commitment Letter.Anti-corruption Training of Xiamen Xiangyu
2 "Three Ones": one characteristic anti-corruption culture publicity activity one exchange of family style and education books one
talk about anti-corruption
33 34Benefiting All Embracing Low- Empowering Smart Improving Quality
with Robust Carbon Style for a Xiangyu through through Steady Fostering Talent
Cultivating
Governance Green Xiangyu Digitalization and Innovative for Harmony
Partnerships for
Development Joint Achievement
2023 Environmental Social and Corporate Governance (ESG) Report
02 Embracing Low-Carbon Style for a Green Xiangyu
Xiamen Xiangyu actively implements national environmental policies strengthens environmental management and
establishes certification systems. We invest in environmental facilities and regularly conduct emergency response drills to
enhance our ability to address environmental risks. To support low-carbon development strategies we actively organize
environmental activities foster a green culture and promote energy-saving and emission-reduction measures. We promote a
green lifestyle and encourage our employees and partners to participate in environmental protection a to achieve harmonious
coexistence between our enterprise and the environment.
35 36Benefiting All Embracing Low- Empowering Smart Improving Quality
with Robust Carbon Style for a Xiangyu through through Steady Fostering Talent
Cultivating
Governance Green Xiangyu Digitalization and Innovative for Harmony
Partnerships for
Development Joint Achievement
2023 Environmental Social and Corporate Governance (ESG) Report
Environmental Management
The Occupational Health Safety and Environmental (OHSE) Management Manual formulated by Xiamen Xiangyu
demonstrates our unwavering commitment to employee occupational health safety and environmental protection.The manual defines OHSE policies and strategic goals establishes core values and concepts of "Safety First
Environment Paramount Human-oriented and Equipment Intact" and creates a safe healthy and environment-
friendly workplace to enhance employee wellbeing and boost our sustainable development. During the reporting
period all of our subsidiaries e.g. Suihua Xiangyu Xiangyu Shipbuilding & Offshore Engineering (SOE) Zhuoyu
Supply Chain Xiamen Singamas and Xiangyu New Energy have been certified and verified by the ISO14001
Environmental Management System. It marks our international recognition in environmental management practices
and further cements our leading position in environmental protection and sustainable development.Xiamen Xiangyu's OHSE Policies and Strategic Goals
ISO14001 Certification Obtained by Subsidiaries of Xiamen Xiangyu
Development of Environmental Protection Projects
Policies Strategic goals
The Company attaches importance to environmental protection and sustainable development and actively
Human-centric focus promotes the development of environmental protection projects. To demonstrate our commitment to environmental
Zero accident zero
putting prevention first
pollution and zero loss and protection we effectively reduce environmental impact and improve the quality of air and water by cutting pollutant
identifying and controlling
building a reputation as emissions and enhancing resource utilization efficiency.risks beforehand creating
a respectful supply chain
a harmonious and safe
investment and operation
environment and pursuing Automatic Car Wash Conveyor Construction Project
service provider
sustainable development
Anyang Xiangdao provides automatic car wash
services with high-pressure water nozzles enhancing
efficient water use without chemical cleansers to
reduce emissions from wastewater and chemicals.This equipment can reduce dust pollution at the
operation site and effectively safeguard workers'
wellbeing. In addition its recycling function facilitates
Key Performance wastewater filtration sedimentation and disposal
During the reporting period our investment in environmental protection thereby reducing water waste and environmental
pollution from car washing.amounted to RMB 3.30 million while our total investment in energy
saving and emission reduction reached RMB 6.75 million. Automatic Car Wash Conveyor Construction Project of Anyang Xiangdao
37 38Benefiting All Embracing Low- Empowering Smart Improving Quality
with Robust Carbon Style for a Xiangyu through through Steady Fostering Talent
Cultivating
Governance Green Xiangyu Digitalization and Innovative for Harmony
Partnerships for
Development Joint Achievement
2023 Environmental Social and Corporate Governance (ESG) Report
Environmental Emergency Management Energy Saving and Emission Reduction
The Company adopts forward-looking measures including regular drills for environmental emergency management to
enhance our ability to prevent and respond to sudden environmental incidents. Our goal is to minimize environmental Xiamen Xiangyu and our subsidiaries consistently explore energy-saving and emission-reduction measures including
damage and potential casualties ensure that the Company can act swiftly and effectively in case of emergency and decreasing the use of fossil fuels by adopting new energy vehicles and minimizing paper consumption by leveraging
implement our long-term commitment to employee safety environment and sustainable development. digital technology. Our goal is to deepen the implementation of energy-saving and emission-reduction strategies
and develop a green efficient and sustainable model for corporate development.Emergency Preparedness Drill for Smoke Emissions
Energy Management
In May 2023 Fujin Xiangyu organized an emergency
preparedness drill for smoke emissions simulating short-
term or temporary excess smoke and dust emissions caused Energy consumption data
by slight pipeline clogging equipment failure or excess
dust. Upon discovery of these abnormal conditions team
members promptly switched to backup equipment and
proactively addressed and troubleshot the relevant failures. Type Consumption Unit
This drill enhances the Company's ability to monitor and
deal with environmental pollution accidents minimizes the Raw coal 23768.91 t
hazards posed to personnel and the environment and helps
normalize the Company's emergency response process. Emergency Preparedness Drill for Smoke
Emissions of Fujin Xiangyu Fuel oil 190.29 t
Diesel 12110990.80 L
Environmental Protection Activities
Gasoline 360421.01 L
To further enhance employees' awareness of environmental protection during the reporting period we planned
and organized a series of environmental protection-themed volunteer services exhibitions and presentations.These activities enhance employees' environmental protection awareness encourage employees to incorporate Natural gas 431369 m
3
environmental protection concept into their daily lives demonstrate our sense of responsibility as corporate citizens
and contribute to a sustainable future. Steam 173202.45 m3
"Seedling Planting" Day Event Outsourced electricity 36232975.20 kWh
In March 2023 Anyang Xiangdao organized a "Seedling
Planting" Day event themed "common development Key Performance
of clear waters and green mountains and joint efforts
in energy saving and emission reduction". During this During the reporting period according to incomplete statistics the total amount of
event 23 employees planted 6 Ligustrum lucidum natural gas raw coal diesel gasoline and outsourced electricity consumed by Xiangdao
seedlings and over 1000 Carthusian Pink seedlings Logistics Xiangyu Agricultural Xiangyu Superchain Xiangming Oils Liangshan Xiangyu
and sprinkled grass seeds over more than 100 square Xiangyu Zhengfeng and other entities in the fields of production processing
meters. The participating employees took on an
exemplary leading role in fostering green hope in the warehousing and logistics in 2023 is estimated to be 66533.49 tonnes of carbon
soil contributing to the development of clear waters and "Seedling Planting" Day Event of Anyang dioxide equivalent (tCO2e) representing a decrease of 1836.72 tCO2e compared to
green mountains. Xiangdao 2022.
39 40Benefiting All Embracing Low- Empowering Smart Improving Quality
with Robust Carbon Style for a Xiangyu through through Steady Fostering Talent
Cultivating
Governance Green Xiangyu Digitalization and Innovative for Harmony
Partnerships for
Development Joint Achievement
2023 Environmental Social and Corporate Governance (ESG) Report
Expanded Heater Renovation Project for Condensate Water and Hot Wind Key Performance
Xiangming Oils made technological carbon reduction as its core focus promoting energy saving and emission During the reporting period the Company annually conserved a total of 16406 m3
reduction through refined management and technological innovation. Regarding steam consumption it of water directly through water conservation measures.innovated drying methods from "hot wind machine + steam" into "hot wind machine + condensate water
from steam" and improved the flow control of fines catcher nozzles reducing steam consumption. By
implementing the digital management and control system it automatically captured production data and
conducted comparative analysis providing strong support for refined management. This initiative is expected
to reduce annual steam consumption by 16000 tonnes and carbon emission by 1163.88 tonnes (an estimated
equivalent of the carbon emissions from the production of 129 cars). Green Logistics
Xiamen Xiangyu demonstrates its commitment to environmental protection by promoting clean energy use
adjusting transport structures and continuously advancing the digital and intelligent transformation of the logistics
industry and to making every effort to achieve global climate goals.Green Logistics Development Initiative of Xiamen Xiangyu
Digital and intelligent
Expanded Heater Renovation Project of Xiangming Oils for Condensate Water and Hot Wind Clean energy use Transport structure adjustment transformation of the logistics
industry
* Promoting the use of EVs HFCVs * I mplementing multi-modal * E stablishing a comprehensive
Water Resources Management NGVs and other clean energy transportation and collaborative Xiamen Xiangyu service platform
vehicles to reduce reliance use of different modes of for digital and intelligent supply
on traditional gasoline and transport e.g. the combined use chain to enhance cost reduction
Water resources consumption data fuels thus decreasing carbon of rail water and road transport and efficiency increase through
emissions during transportation to reduce reliance on road technological means and to
transport with relatively high facilitate green and low carbon
Type Consumption Unit carbon emissions and decrease transformation of the bulk
3 overall carbon emissions during logistics industryTotal water use 170860 m
transportation
Recycled/reused water 16406 m3
41 42Benefiting All Embracing Low- Empowering Smart Improving Quality Cultivating
with Robust Carbon Style for a Xiangyu through through Steady Fostering Talent Partnerships for
Governance Green Xiangyu Digitalization and Innovative for HarmonyDevelopment Joint Achievement
2023 Environmental Social and Corporate Governance (ESG) Report
Achieving the Transition "from Road Transport to Rail Transport" and Leveraging the Green Benefits of Category Subcategory Unit Data in 2023
Multi-modal Transport
Total wastewater emissions m3 55063
Given the fact that rail transport consumes only 15% of the energy and emits 8% of the pollutants compared
to road transport Xiamen Xiangyu successfully achieved the transition "from road transport to rail transport" Chemical oxygen demand (COD) mg/L 8.749
regarding cement clinker kaolin and other varieties by leveraging unique advantages of self-owned
railway lines and open-top container transportation. This transition further cements the green conversion Five-day biochemical oxygen demand (BOD5) mg/L 2.039
achievements in the logistics industry and significantly reduces comprehensive energy consumption and Water pollutant emissions
pollutant emissions in terms of logistics. During the reporting period Xiamen Xiangyu transported 12 million Suspended solids mg/L 1.66
tonnes of goods via our "from road transport to rail transport" route resulting in a decrease of 0.4 million
transportation vehicles and a deduction of 2.20 million tonnes in carbon emissions. Ammonia nitrogen mg/L 0.484
Total phosphorus mg/L 0.8782
Application of Xiangyu Superchain's Digital and Intelligent Technologies in Promoting Green and Low Total general solid waste t 2086.7
Carbon Transformation of the Logistics Industry Waste emissions
Total hazardous waste t 4.47354
Xiangyu Superchain embraced digital and intelligent concepts drove cost reduction and efficiency increase
through technological means and promoted the transformation of the bulk logistics industry towards a
greener and low-carbon future. The Company also built a digital warehouse equipped with IoT peripheral
computing AI intelligent analysis and other smart technologies which allows for the visualization of title to Reduction of Chemicals by the Sewage Treatment Plant
goods and reduces physical visits to offline warehouses. The Company introduced a comprehensive digital
application for signatures and seals enabling paperless operations throughout the process of goods transfer Xiangming Oils strengthened refined management and implemented the sustainable development
into and out of warehouses. All these efforts have resulted in an annual reduction of 6028.8 tonnes in carbon concept from the source that generates wastewater. According to statistics untreated wastewater
oxide emissions. requires 80kg of concentrated sulfuric acid (at a unit price of approx. RMB 650 per t) and 100kg of calcium
hydroxide (at a unit price of approx. RMB 1350 per t) for disposal on a daily basis. The refinement
"Three Wastes" Treatment plant has recycled the water generated from water washing through the refining process significantly reducing the content of oil and soap in wastewater and the amount of concentrated sulfuric acid calcium
hydroxide and other hazardous chemicals in the process of wastewater treatment.Xiamen Xiangyu strictly complies with the Administrative Measures for Environmental Protection requiring its subsidiaries
to establish and implement specific environmental protection management systems. These systems cover the
management monitoring emission data analysis processing and control of "three wastes" emission points to ensure the
effective operation of environmental protection facilities.The data on the Company's gaseous pollutant emissions water pollutant emissions and waste emissions are as follows:
Category Subcategory Unit Data in 2023
Total gaseous waste emissions m3 156734937
Particles mg/m3 90.789
Gaseous pollutant emissions Oxynitride mg/m3 443.735
Oxysulfide mg/m3 367 Reduction of Chemicals by the Sewage Treatment Plant of Xiangming Oils
VOCs emissions mg/m3 20.1
43 44Benefiting All Embracing Low- Empowering Smart Improving Quality through Steady Fostering Talent Cultivating with Robust Carbon Style for a Xiangyu through
Governance Green Xiangyu Digitalization and Innovative for Harmony
Partnerships for
Development Joint Achievement
2023 Environmental Social and Corporate Governance (ESG) Report
03 Empowering Smart Xiangyu through Digitalization
Focusing on three core objectives (i.e. expanding incremental markets improving service efficiency and upgrading business
patterns) Xiamen Xiangyu consistently explores and implements digital transformation strategies. The Company actively
advances technological innovation leveraging extensive business data customer resources and diverse application scenarios.It has successfully developed key digital tools including "Yu Lian Tong" a digital supply chain service system and an intelligent
logistics service system.. In the process of digital transformation the Company prioritizes information security having established
a comprehensive information security and protection system that integrates management improvements and technological
applications. This includes the formulation of rigorous information security policies strengthening employees' information
security awareness through training adopting advanced data encryption and protection technologies and the establishment of an
emergency response mechanism to ensure the timely identification and handling of various information security threats.
45 46Benefiting All Embracing Low- Empowering Smart Improving Quality Cultivating
with Robust Carbon Style for a Xiangyu through through Steady Fostering Talent and Innovative for Harmony Partnerships for Governance Green Xiangyu Digitalization Development Joint Achievement
2023 Environmental Social and Corporate Governance (ESG) Report
Digital Framework In 2023 within the digital transformation organizational framework the Company adopted a series of measures to establish and intensify a digital partnership framework. We actively advertise and promote digital culture and
address issues such as weaknesses in front-line digital capability and frequent staff turnover ensuring the stability
and continuity of the digital transformation process. These efforts lead to optimized business processes improved
To enhance the level of digital construction Xiamen Xiangyu formulates comprehensive digital transformation operational efficiency and bolstered market competitiveness.strategies and builds a systematic organizational structure help clarifying the direction and tasks for smooth
implementation of digital transformation strategies.Key Performance
Digital Transformation Strategy During the reporting period the Company actively built a digital partnership
frameworkunder which it selected 30 individuals to lead various digital business lines
Xiamen Xiangyu's digital transformation strategy emphasizes the principles of "overall planning staged implementation and appointed 30 digital functional partners and 100+ digital business partners. The
and emergency first" ensuring targeted and gradual advancement of digital projects. Through data-driven intelligent Company manages these roles using a certification-based employment list to ensure
and synergistic online business the Company is committed to becoming a leader in intelligent supply chain services and the stability of digital partners and helps our digital partners improve their practical
a leading pioneer in the industrial Internet and is focused on five key tasks: customer-centric focus quality and efficiency skills through both internal and external training programs.improvement industrial interlink agile response and organizational transformation.Digital Organizational Framework Offering a Diverse Range of Courses to Promote Digital Culture Cultivation and Education
To ensure the smooth implementation of digital transformation strategies the Company actively advances During the reporting period the Company offered digital courses to employees at various levels to vigorously
the development of the digital organizational framework and a team of executives has established a Digital accelerate our digital transformation. This program covers a series of digital and intelligent "Sailing" courses
Transformation Committee responsible for making decisions on digital initiatives. The Digital Transformation Office for grassroots employees digital and intelligent "Wave Breaking" courses for mid-level employees and
is responsible for coordinating and driving key strategic projects at the company level ensuring effective integration "Special Executive Training Camp" courses for executive officers. The smooth implementation of these
of digital demands into various business lines. As dual engines for execution the Company's Information Center and courses not only improved employees' awareness of digital transformation but also strengthened their ability
Xiamen Xiangyu Technology Co. Ltd. are responsible for the full implementation of digital strategies. to participate in and drive digital progress.Digital Transformation Organizational System of Xiamen Xiangyu
Digital Transformation Committee
Digital Transformation Office Xiamen Xiangyu “Sailing” series Xiamen Xiangyu "Breaking Waves" Xiamen Xiangyu “Special Executiveof Courses series of Courses Training Camp” series of Courses
Business Lines Technical Lines Key Performance
During the reporting period the Company's Digital Transformation Office and IT Center
Digital functional and business organizations The Company's Xiangyu Information Center Technology organized 35 inter-departmental digital transformation training sessions for 1000+
employees throughout the year.
47 48Benefiting All Embracing Low- Empowering Smart Improving Quality Cultivating
with Robust Carbon Style for a Xiangyu through through Steady Fostering Talent
Governance Green Xiangyu Digitalization and Innovative for Harmony
Partnerships for
Development Joint Achievement
2023 Environmental Social and Corporate Governance (ESG) Report
Digital System Financial Pain Points of the Traditional Supply Chain
Focusing on three core objectives (i.e. expanding incremental markets improving service efficiency and upgrading
business patterns) Xiamen Xiangyu establishes a variety of digital systems by leveraging extensive business data
abundant customer resources and diverse application scenarios.Enterprises Banks
Digital Supply Chain Service System Named "Yu Lian Tong" * Lack of credit based on financial statements * Difficulty in personal property supervision
and small credit and unclear title to goods
* Lack of fixed assets available for mortgage and * Difficulty in data penetration and low
"Yu Lian Tong" is a transparent and efficient system designed to provide medium-sized small and micro enterprises tying up of large funds for order placement and reliability
(MSMEs) with financing pathways using cutting-edge technologies such as blockchain AI and IoT. This system helps inventory * Price fluctuation and difficulty in goods value
MSMEs overcome capital bottlenecks in their development process and promotes the sustainable development of * Low efficiency in loan approvals from traditional management
the economic society. financing products failure to meet the actual * Lack of self-owned channels and time-
needs of enterprises and affecting the stability consuming realization cycle
Xiamen Xiangyu has been continuously optimizing the technical structure and product functions of "Yu Lian Tong" and security of their capital chains
since its launch in 2018 to ensure the security stability and scalability of the system. In 2023 we established "Xiamen
Yu Lian Tong Intelligent and Smart Supply Chain Technology Co. Ltd." specializing in the operation and promotion
of the system.Yu Lian Tong's Core Competitive Strengths
Logistics capability Industry chain integration
capability
* G lobal "road rail water * I ndustry research
and warehouse" logistics * Integration of upstream and
resource landscape downstream resources
* M anagement experience in * C omprehensive supply chain
bulk commodities services
Goods management Industry knowledge
"Yu Lian Tong" Won the "Dingge Award" as a Role Model in "Yu Lian Tong" Won the "Outstanding Financial
Supply Chain Transformation Case in China Logistics and Supply Chain" 2022 Yu Lian Tong's Core
Competitive Strengths
Technological Systems Commodity sales channels
"Yu Lian Tong" builds a reliable bridge for supply chain data between customers and banks by leveraging Xiamen * B uilding digital and intelligent * A ssisting banks to keep an
Xiangyu's strengths in terms of "logistics capability industry chain integration capability technological systems Xiamen Xiangyu strategically eye on the market
and commodity sales channels". It successfully reduces financing costs for medium-sized and small enterprises * B uilding an intelligent * C ommodity sales channels
by 10% to 40% compared to other non-banking financing channels and empowers the bank-end risk control logistics service system and * H elping banks realize goods
and management by leveraging capabilities such as "goods management industry knowledge traceability and an online shipping platform
realizability". Meanwhile "Yu Lian Tong" enables whole-process online operations allowing enterprises to initiate * I nterlink and interconnection
financing requests with the click of a button. It takes only 5 to 10 minutes to complete all operations involved in the with banks
entire process from pledge to the granting of bank loans thereby expanding financing channels improving financing
Clear traceability Flexible realizability
efficiency and reducing financing costs for enterprises.
4950
Difficulty in risk control valuation
and realization
Lack of reliable data bridge
Difficult costly and slow financingBenefiting All Embracing Low- Empowering Smart Improving Quality
with Robust Carbon Style for a Xiangyu through through Steady Fostering Talent
Cultivating
Partnerships for
Governance Green Xiangyu Digitalization and Innovative for HarmonyDevelopment Joint Achievement
2023 Environmental Social and Corporate Governance (ESG) Report
"Yu Lian Tong" Helped Banks Implement Inclusive Finance "Yu Cang Rong" Helped Address the Tying Up of Inventory Funds in Dongguan's Paper Industry
Xiamen Branch of Bank of Communications serves small and micro enterprises (SMEs) by actively adhering to Xiamen Xiangyu established a specialized intelligent paper warehouse
national inclusive finance policies. SME owners in Xiamen Xiangyu's digital warehouse need to vitalize inventory named "Xiangyu Superchain Dongguan Shuntong Warehouse" in Daojiao
funds. In collaboration with the Bank of Communications the Company provides customers with electronic Town Dongguan. This warehouse offers comprehensive supporting
warehouse receipt pledge financing services through "Yu Lian Tong". These customers operate across various services including import customs intelligent warehousing transportation
industries such as plastics rubber pulp paper nonferrous metals and agricultural products granting facilities and and Yu Cang Rong to customers within the paper processing and
loans to more than 50 SMEs. Efficiency and convenience are key features of this service: an enterprise can obtain distribution industry cluster in the Pearl River Delta. Distribution often spans
a credit limit (up to RMB 10 million) on the date of code scanning and it only takes a few minutes to make an a couple of months for customers in the paper industry resulting in funds
automatic withdrawal through online banking of the Bank of Communications once the warehouse receipt pledge being tied up in inventory. To effectively address this challenge and enable
procedures are completed. This collaborative program won third place in the "Outstanding Program in Xiamen's MSMEs to leverage inclusive finance policies "Yu Lian Tong" collaborates
Fourth Fintech Competition" hosted by Xiamen Branch of the People's Bank of China. with multiple banks to provide "Yu Cang Rong" services which allows for
the initiation of pledge financing against electronic warehouse receipts A customer and Xiamen Xiangyu
after the delivery of goods to the warehouse. Logistics Personnel at a Warehouse
By virtue of a complex product matrix "Yu Lian Tong" is designed to conduct diversified pledge financing businesses
align corporate financing demands with bank loan grant requirements and devise flexible and customized financing
schemes. This ensures financing on demand borrowings and repayments at will and maximized financing benefits."Yu Cai Rong" Helped Alleviate the Tying Up of Funds for Purchase Orders and Inventory in the Downstream
Yu Lian Tong's Product Matrix Steel Industry
Yu Lian Tong The steel business team of Tianjin Xiangyu Import and Export Trading Co. Ltd. in collaboration with Xiangyu
Zhengfeng and "Yu Lian Tong" provides downstream processing enterprises with comprehensive services
such as collective steel procurement intelligent warehousing and "Yu Cai Rong". Customers can place
financing orders with relevant banks to solve the tying up of advance payments and inventory funds based on
the procurement contract with Xiamen Xiangyu. The entire process operates online 7*24 enabling customers
to pay off loans release of mortgages and pick up of goods at any time. This offers a more convenient and
efficient financing process for customers.Yu Cang Rong Yu Cai Rong Yu Tu Rong Yu Shu Rong
* F inancing based
* Goods in stock * Purchase orders * G oods in transit
on transactional
* P ledge financing * F inancing * Pledge financing
data
Key Performance
As of the end of 2023 "Yu Lian Tong" has partnered with 10 banks and secured RMB
10.6 billion in special facilities. During the reporting period the total financing actually
obtained by customers from these banks exceeded RMB 2.7 billion. A customer and Xiamen Xiangyu's Business Operation and Logistics Personnel at a Warehouse
51 52Benefiting All Embracing Low- Empowering Smart Improving Quality Cultivating
with Robust Carbon Style for a Xiangyu through through Steady Fostering Talent
Governance Green Xiangyu Digitalization and Innovative for Harmony
Partnerships for
Development Joint Achievement
2023 Environmental Social and Corporate Governance (ESG) Report
Intelligent Logistics Service System * T he Company has formed * T he Company has formed * T he Company has formed
a grain planting industry a grain warehouse alliance a grain circulation industry
alliance to offer farmers consolidating various alliance allowing us to
an array of agricultural third party storage nodes conduct cross-regional
Based on the concepts of "intelligent processes online services and visualized title to goods" the Company has material procurement and in other regions. This adjustments of diversified
developed the Xiangyu intelligent logistics service system (ISC) using big data cloud computing IoT and other sales services agricultural approach has significantly quality raw materials through
cutting-edge technologies. The ISC system facilitates real-time collection transmission and processing of logistics technology consulting services increased the Company's North-South transportation
information and offers a comprehensive transparent and efficient logistics management system for customers. and agricultural product grain procurement network logistics service system. This
storage services through density expanded coverage system effectively meets the
Xingxing Xiangnong App. This and further penetrated needs of feed breeding and
Customers can access real-time information on transportation status inventory customs clearance progress and move aims to address the deep into the industry deep processing enterprises
other critical details about goods through the ISC system providing solid data support for precise decision-making. industry's common problems and has effectively solved across different regions
In 2023 the ISC system achieved significant progress in projects such as intelligent parks intelligent driving systems such as primitive channels the difficulties in selling resolving all issues related to
and large warehousing screens greatly enhancing the intelligence and automation of logistics services. multiple trade links and and storing grains by production and consumption
information asymmetry thereby expanding the services "time and space mismatches"
strengthening our ability to from Heilongjiang to Jilin in the industry.control first-hand sources of Liaoning and beyond.Agricultural Supply Chain Service System grain and expand our variety.Front section Middle section Back section
The Company thoroughly implements national grain safety strategies and harnesses digital technologies to inject
new momentum into traditional agriculture. We have developed an industry-level agricultural supply chain service
system that optimizes the grain circulation process through extensive integration of information technologies
significantly enhancing circulation efficiency. Meanwhile our system provides an information service platform
that enables agricultural practitioners to have easy access to market information policy guidance and technical Grain planting industry alliance Grain warehouse alliance Grain circulation industry alliance
training thereby improving product quality and efficiency. Looking ahead we will continue to explore and innovate
contributing further to the sustainable development of the agricultural industry.Cooperatives Retail planters Xiangyu self-owned warehouses Grain warehouses
Brokers Grain producers Grain logistics
Industry-level Agricultural Supply Chain Service System of Xiamen Xiangyu Farms
Logistics
providers
Agricultural Grain users
Key Performance material suppliers
Financial institutions
Agricultural machine Financial Futures and
Third party warehouses Data companies insurance
During the reporting period the Company further increased the penetration of its suppliers Governments insurance
industry-level agricultural supply chain service system in three production areas (i.e.Suihua Yi'an and Fujin) and had over 6.8 million acres of lands newly certified; we
also launched Xingxing Xiangnong App and a WaaS system (grain warehouse alliance
system) achieving the entire online process for grain return.Front section Middle section Back section
53 54Benefiting All Embracing Low- Empowering Smart Improving Quality Cultivating
with Robust Carbon Style for a Xiangyu through through Steady Fostering Talent Partnerships for
Governance Green Xiangyu Digitalization and Innovative for HarmonyDevelopment Joint Achievement
2023 Environmental Social and Corporate Governance (ESG) Report
Information Security Information Security Operations
Xiamen Xiangyu develops a robust information security operation system to ensure the continuity of our business and the
With the continuous advancement of digital transformation data assets have become one of the strategic resources vital to digital security of our data assets. In terms of daily security operations we implement a daily security patrol inspection system regularly
economic development. Information security not only affects an enterprise's daily operations but is also crucial to its sustainable identify the risks posed to the systems open to the Internet and periodically scan for vulnerabilities and identify attack surfaces
development. to ensure system security. During important events and festivals we further enhance our cybersecurity measures to successfully
accomplish cybersecurity tasks during the "annual NPC and CPPCC sessions" the Asian Games and important holidays. During
Xiamen Xiangyu attaches great importance to information security and collaborates with professional third-party companies the reporting period no major cybersecurity event has occurred with respect to the Company.to build an information security and protection system in terms of security management improvement and security technology
application ensuring business processes are safe efficient and conform to ESG standards. As for management structure the Raising the Internal Information Security Awareness
Company has established the Information Security Management Committee as the highest decision-making body comprised
of its executives to ensure information security strategies align with its overall strategy. In addition we also have established During the reporting period to foster internal employees'
an Information Security Task Force as an executive body responsible for daily information security management. At the same email security awareness the Company conducted multiple
time we have appointed several subsidiaries as accountable bodies of information security to ensure effective implementation phishing email tests on the staff and provided special security
of information security measures at all levels. In terms of institutional guarantee the Company has formulated a series of awareness trainings for employees who failed the tests.information security rules and regulations designed to continuously improve our information security management system. This Meanwhile the Company also provided new employees with
ensures the confidentiality integrity and availability of information. trainings on information security knowledge and practices
continuously bolstering employees' defenses against
information security breaches. Internal Training on Information Security Awareness
General Rules for Information Security Management by Xiamen Xiangyu
Xiamen Xiangyu Group has formulated the General Rules for Information Security Management of Xiamen Xiangyu Key Performance
Group to define its information security management framework. Xiamen Xiangyu adheres to this management
framework and assists the group to manage the headquarters and its subsidiaries. During the reporting period the Company fended off external attacks for 4614000
times intercepted 1346000 phishing emails and prevented brute force attacks
Information Security System Xiamen Xiangyu for over 200 million times.Through continuous improvement of the defense system and active defense the Company
had no major information security incidents during the reporting period.Information security system
* Defining the group's overall policy objectives scope and
principles regarding information security management to govern Customer Privacy Protection
General information security management work
management * Providing a comprehensive framework that lays the foundation
rules for other information security management measures standards Xiamen Xiangyu attaches great importance to customer privacy protection considering it as a core aspect of our corporate
and implementation rules responsibility. In addition to the Management Measures for Information Security the Application Security Management Norms
General and other rules and regulations the Company has formulated the Information Security Contingency Plan to provide additional
management rules safeguards for customer privacy. Guided by these rules and regulations we effectively maintain the confidentiality of customers'
* Under the guidance of the general management rules private information through digital and technological means such as decentralized management and storage encryption.Management formulating specific management measures for information
measures security management within the prescribed scope* Covering such topics as risk managements event management
cybersecurity terminal security and data security Annual Information Risk Report
Management
measures Xiamen Xiangyu manages information risks comprehensively to ensure the stability and continued development of our business.During the reporting period the Company prepared an annual information risk report conducting in-depth conclusion and analysis
* F ormulating specific implementation rules and technical of various information risks faced over the year including information system security risks server regulation risks software operation
Technical standards for network and information security with respect to risks risks from unauthorized software sanctions and punishments phishing email incidents and risks. Through measurable
standards various management measures as needed
* Regularly updating and dynamically maintaining quantitative indicators the Company can thoroughly analyze risk profile and provide important reference for improving risk
Technical standards management strategies and measures. The Company's information risk management strategies are designed to provide a decision-
making basis for risk management ensuring the Company's business operates normally in a safe and controllable environment.
5556
Detailed interpretationBenefiting All Embracing Low- Empowering Smart Improving Quality
with Robust Carbon Style for a Xiangyu through through Steady Fostering Talent
Cultivating
Governance Green Xiangyu Digitalization and Innovative for Harmony
Partnerships for
Development Joint Achievement
2023 Environmental Social and Corporate Governance (ESG) Report
04 Improving Quality through Steady and Innovative Development
Seizing high-quality development opportunities Xiamen Xiangyu builds a top-notch supply chain service team
through enhanced quality management. Guided by networking internationalization digitalization and intelligence
we adhere to innovation-driven services and continuously strengthen our service capabilities. By establishing an
efficient resource allocation framework and network-based logistics services we deepen our involvement in every
link of the industry chain enhancing our service coverage and efficiency. Meanwhile we focus on comprehensive
customer lifecycle management and integrate the ESG principles into corporate governance to continuously
enhance the value of our services.
57 58Benefiting All Embracing Low- Empowering Smart Improving Quality Cultivating
with Robust Carbon Style for a Xiangyu through through Steady Fostering Talent
Governance Green Xiangyu Digitalization and Innovative for Harmony
Partnerships for
Development Joint Achievement
2023 Environmental Social and Corporate Governance (ESG) Report
Quality Management Qualifications and Certifications
Positioned as a leader in bulk commodity supply chain services Xiamen Xiangyu is dedicated to providing manufacturers with Xiamen Xiangyu takes proactive measures to obtain qualifications and system certifications for our products and
integrated supply chain solutions. Our core services cover the procurement and supply of bulk raw and auxiliary materials the services tailored to satisfy the developmental needs and adapt to the actual situation of each business sector.distribution of finished products logistics distribution supply chain finance and information consulting. Our goal is to become a During the reporting period the qualifications and certifications concerning product and service are as follows:
world-class supply chain service provider and to create the pattern of "supply chain service + production & manufacturing" for
operating the industry chain by developing service strengths across the industry chain and strategically engaging in production
and manufacturing. This pattern not only increases our comprehensive earnings but also effectively mitigates the impact of
cyclical industry fluctuations. Business Sector Company Name Certification
ISO9001 Quality Management System Certification
In pursuing business excellence Xiamen Xiangyu places significant emphasis on the quality of our products and services. We Xiamen Great Corporation
conduct comprehensive quality management tailored to the specific needs of various business sectors and have established AEO Advanced Certification
a quality management framework that encompasses conceptual and strategic design system formulation training and
education testing and examination product traceability product recall complaint management qualification certification and AEO Advanced Certification
otherwise. This framework ensures that our services and products consistently meet even exceed customer expectations and Fujian Xingda
demonstrates our commitment to quality and our pursuit of continuous improvements. ISO9001 Quality Management System Certification
Bulk commodity trading
Primary Business Status of Xiamen Xiangyu PIL Total Logistics AEO Advanced Certification
Xiangyu Commodities AEO Advanced Certification
Xiangyu New Energy AEO Advanced Certification
Xiangyu Resources ISO9001 Quality Management System Certification
Commodity portfolio Customer structure Regional landscape ISO9001 Quality Management System Certification
Xiangyu Oils
The Company mainly operates metal The Company focuses on satisfying The Company has established 10 Production & HACCP Food Safety Management System
minerals agricultural products energy customer needs in the manufacturing platforms in China. The Company has
and chemicals new energy and other field and consistently optimizes also expanded its core operations manufacturing Xiangyu SOE ISO9001 Quality Management System Certification
bulk commodities covering seven customer structure. During the from coastal cities to inland cities and
key categories i.e. ferrous metals reporting period the number of engaged in meeting the supply chain
aluminum stainless steel new energy manufacturing customers served by needs of modernized industry clusters Zhuoyu Supply Chain ISO9001 Quality Management System Certification
coal oils and cereals & grains. the Company remains steady at 60% in central and western regions. In recent
and above including over 80% in years as part of our strategic blueprint
new energy supply chain over 70% in we have actively expanded into the
ferrous metal and aluminum supply international market in countries and
chain over 60% in coal and cereals & regions along the "Belt and Road" Traceability and Recall
grain supply chain and over 50% in initiative. We have established overseas
stainless steel supply chain. business entities in Singapore Vietnam
Indonesia and beyond collaborating
with customers across over 100 Xiamen Xiangyu recognizes the positive significance of product traceability and recall capability in enhancing quality
countries. Our focus is on connecting
with overseas quality purchase and sale protecting customers' rights and interests mitigating risks and losses and improving supply chain transparency.channels and addressing the overseas During the reporting period Xiangming Oils a subsidiary of Xiamen Xiangyu issued the Product Traceability System
supply chain needs of large-scale and the Unsafe Food Recall System. The Product Traceability System sets forth specific marking control provisions
domestically-funded enterprises.for every stage of soybean processing and production effectively bolstering our ability to trace the whole process
from source to finished products. The Unsafe Good Recall System outlines the process for recalling food found
unsafe after receipt by distributors or consumers ensuring swift and safe responses to prevent further escalation.By implementing these systems we not only improve our ability to control product safety and quality but also
underscore our commitment to prioritizing customers and shouldering social responsibilities.
59 60Benefiting All Embracing Low- Empowering Smart Improving Quality
with Robust Carbon Style for a Xiangyu through through Steady Fostering Talent
Cultivating
Governance Green Xiangyu Digitalization and Innovative for Harmony
Partnerships for
Development Joint Achievement
2023 Environmental Social and Corporate Governance (ESG) Report
Training and Education Key Performance
During the reporting period Xiangming Oils received 0.347 valid complaints per
Through officially certified quality system internal audits and trainings Xiamen Xiangyu actively foster a vibrant
quality culture within the Company. We encourage every employee to prioritize quality in their work and improve 10000 tonnes of soybeans processed which is lower than the Company's goal of 0.5
quality awareness and management capabilities of individuals and teams through relentless learning and practice. valid complaints per 10000 tonnes. The Company meticulously recorded and properly
addressed all valid complaints and implemented internal improvements accordingly.Xiangming Oils' ISO9001 System Internal Audit
Customer Satisfaction Survey
In 2023 Xiangming Oils arranged for relevant employees to conduct over 10 product quality and safety
training sessions based on front-line needs which had 494 participants and covered such topics as food
In 2023 Xiangming Oils actively conducted a customer satisfaction survey for in-depth understanding of customers'
safety feed safety and GMO safety enhancing employees' product safety awareness and capabilities from
multiple dimensions. needs and feedback. To gather customers' opinions and suggestions we collected 118 valid questionnaires.According to the survey results customers highly rated Xiangming Oils' products and services.Among these questionnaires 95 questionnaires indicated "very satisfied" accounting for 80%;
23 questionnaires indicated "satisfied" accounting for approx. 20%; no questionnaire indicated
"less satisfied" or "unsatisfied". In the future we will continue to listen to the voices of customers
continuously optimize our products and services and consider customer feedback as a key driver
for our ongoing improvement and development.Logistics Capability
As China's 5A logistics enterprise Xiamen Xiangyu places logistics capability at the core of our development strategies. On one
ISO9001 System Internal Audit Meeting Held by Xiangming Oils hand we lead the way in establishing and continuously improving a network-based logistics service system focused on "road
rail water and warehouse" connecting domestic and overseas markets. On the other hand focusing on tremendous efforts to
boost the digital and intelligent transformation of logistics services we actively integrate big data cloud computing IoT AI and
Customer Feedback other cutting-edge technologies deep into every aspect of the logistics business through a robust logistics network. By virtue of these innovative practices the Company consistently improves the efficiency and quality of our logistics services. The Company is
dedicated to becoming an innovative pioneer in the logistics industry offering customers more outstanding and efficient logistics
solutions and creating a new ecosystem for the sustainable development of the industry.Xiamen Xiangyu has established a robust customer complaint management system based on the actual situation
of our business sectors to ensure our timely collection analysis and response to customer feedback thereby
optimizing business processes and enhancing customer experience. Meanwhile we regularly conduct customer Network-based Logistics Service System
satisfaction surveys and actively gather customer opinions and suggestions through questionnaires interviews
online surveys and otherwise. This helps us understand customer needs and expectations and reasonably evaluate The Company has established a comprehensive network-based logistics service system encompassing the following: (i) a rail
service quality as a key foundation for improving our services and products. transport network running from west to east and connecting south and north; (ii) a nationwide road transport network; (iii) a
water transport network based at major domestic ports; (iv) warehousing clusters in the eastern coastal central and western bulk
commodity distribution areas; and (v) international logistics channels such as international charter shipping and international rail
Customer Complaint Management services linking overseas markets.By leveraging multi-modal transport strengths the Company provides customers with high-quality end-to-end and customized
In 2023 Xiangming Oils one of Xiamen Xiangyu's subsidiaries issued the Customer Complaint Management Rules bulk commodity logistics solutions. We have successfully developed multiple classic routes including "cross-provincial
that provide for the division of duties workflow and claim indemnification regarding product and service complaints circulation of aluminum products" "grain transportation from north to south" "coal transportation from west to east" and "coal
ensuring rapid and effective response to customer feedback. transportation from north to south" providing customers with a seamless efficient and reliable logistics experience.
61 62Benefiting All Embracing Low- Empowering Smart Improving Quality Cultivating
with Robust Carbon Style for a Xiangyu through through Steady Fostering Talent Partnerships for
Governance Green Xiangyu Digitalization and Innovative for HarmonyDevelopment Joint Achievement
2023 Environmental Social and Corporate Governance (ESG) Report
Logistics resources and capabilities of the Company Network-based Logistics Service System of Xiamen Xiangyu1
Category Resources and Capabilities
The Company operates 11 rail freight stations (9 self-owned 1 managed and 1 rented) covering
bulk commodity distribution hubs in central and western regions and equipped with 47 China-Europe and China-Asia
specialized railway lines approx. 2.50 million square meters of container yards and warehouses railway lines
and around 30000 self-provided containers. With annual freight capability exceeding 45 million
tonnes the Company ranks among the top in the industry. It has developed high-quality
Rail transport transportation routes for coal and aluminum products including "Shandong and Henan –
Xinjiang" and "Shaanxi – Yunnan Guizhou and Sichuan" transportation routes.The Company operates approx. 1000 self-owned transport vehicles and approx. 0.1 million
International
commercial vehicles logistics
The United States
New Zealand
Road transport Indonesia
Thailand and
Vietnametc.The Company operates 3 self-owned consolidation and distribution vessels and
continuously integrates commercial vessels into water transport forming a combined water Railway freight stations
transport capacity of "self-owned + cooperative" vessels. During the reporting period the Grain bases
transport volume of domestic coastal and Yangtze River basin exceeded 27 million tonnes.Water transport Warehouses
Yards
Grain transportation
from north to south
Coal transportation
from north to south
The Company operates: (i) 7 grain purchase platforms with a self-owned warehouse Cross-provincial transportation of
capacity of approx. 13 million tonnes which are equipped with 9 specialized railway lines; aluminum oxide
(ii) 52 self-owned and chartered warehouses covering over 1.6 million square meters;
(iii) 8 yards with a total area of over 0.5 million square meters; and (iv) 17 futures closing
Warehousing clusters warehouses with a total capacity of approx. 1 million tonnes.By leveraging international charter shipping capability for bulk dry goods and international
rail logistics service capability the Company has built a China-Indonesia logistics channel
(with a freight capacity of 17 million tonnes during the reporting period) a "China-Vietnam
& Thailand" logistics channel and a "two-way China-Europe" transport channel. These
channels help the Company forge our international multi-modal transport capability and
International logistics improve localized logistics services overseas.
1This map is indicative in nature and is intended only for an overview of a specific area
63 64Benefiting All Embracing Low- Empowering Smart Improving Quality Cultivating
with Robust Carbon Style for a Xiangyu through through Steady Fostering Talent
Governance Green Xiangyu Digitalization and Innovative for Harmony
Partnerships for
Development Joint Achievement
2023 Environmental Social and Corporate Governance (ESG) Report
Internationalization Development Seizing the Development Opportunities of China-Europe Railway Line And Implementing the "Belt and
Road" Initiative to Drive Economic Development
Aligned with China's "Belt and Road" initiative Xiamen Xiangyu puts countries and regions along the initiative at the core
of our strategic landscape and actively expands into international markets. The Company collaborates with customers As a crucial logistics artery connecting China Europe and countries along the "Belt and Road" initiative the
across more than 100 countries addresses the supply chain needs of large-scale domestically-funded enterprises abroad China-Europe railway line plays a pivotal role in boosting economic and trade cooperation. In 2023 Xiamen
by connecting with excellent overseas purchase and sale channels and provides those enterprises with professional Xiangyu Elink Multitrans Co. Ltd. a subsidiary of Xiangyu Superchain successfully managed around 460
and efficient supply chain services. To boost our internationalization strategy the Company has established the China-Europe train dispatches providing strong support for the economic development along the "Belt and
Internationalization Development Department tasked with the expansion of overseas business the development of Road" initiative. Xiangyu Elink Multitrans Co. Ltd. provides logistics services throughout the entire process
overseas platforms and the management of internationalization strategies. In 2023 the Company made steady strides including vehicle receipt and inspection container loading supervision ship booking and customs declaration
in boosting our internationalization strategy refining international management system and building an international and clearance ensuring efficient connection with the logistics chain. These services not only facilitate smooth
platform. The Company is taking gradual steps to build a global supply chain service system to continuously improve our automobile export but also enable China's automotive enterprises to enhance export capacity and deliver
international competitiveness steadily moving towards our goal of "becoming a world-class supply chain service provider".products to the global market in a more efficient manner.Internationalization Initiatives
Making steady * Establishing a "1+3+N" system for safeguarding internationalization-related functions; Outward direction
strides to boost our
internationalization * Refining the mechanism to track business goals; Through collaborative efforts across various fronts Elink team facilitates the export of consumer
strategy * E nhancing internal empowerment and external interaction. goods from Xi'an Guangzhou Nanchang Chengdu and other cities to more than 10 countries
opening up the export transportation channel for domestic enterprises
Refining our internationalization management system Taking gradual steps to build an international platform
* Establishing an "Internationalization System Optimization * Developing an international talent pool scheme and building Inward direction
Task Force" to formulate the Requirements for Overseas Travel a talent management system by "assigning domestic talents Elink team transports crucial bulk goods and materials (e.g. timber agricultural products and
Achievements Feedback the Guidelines on Approval Process for overseas training +recruiting local talents" aiming to minerals) from various countries back into China. This strongly supports nationwide supply chain
of Overseas Platform Companies and the Work Guidelines for strengthen our talent pool provision and contributes to domestic and international dual-cycle development.Foreigners Working in China and other systems
Internationalization Progress of Xiamen Xiangyu
Overseas platform companies Project companies Overseas teams Supplier Management
* T he Company has established * The Company has established multiple * T he Company continues to attract
overseas business entities in projects in Indonesia New Zealand and international talents and builds Xiamen Xiangyu emphasizes supplier management in particular lifecycle management practices. The Company is
Singapore Vietnam and Indonesia Singapore including various business an outstanding overseas supply dedicated to establishing a long-term and beneficial partnership with suppliers and incorporates ESG factors into
etc. These companies serve as units logistics service providers chain service team. As of 2023 the
"service stations" for overseas and barge transport companies Company has 58 employees across due diligence to promote sustainable development practices on the industry chain striving for continuous creation
business leveraging inter-regional established and operated in Indonesia; overseas platforms including 17 in of social value and maximization of enterprise value.synergistic effects. the Company has acquired forest right Singapore 10 in Hong Kong 4 in the
reserve and wharf resources in New United States 6 in Indonesia and 21
Zealand by leveraging our supply in Vietnam.chain investment and operational Lifecycle Management
capabilities; our new energy project
companies in Singapore help facilitate
the expansion of photovoltaic products To strengthen supplier credit risk management and control the Company has established a "joint-stock company-
into other overseas markets.subsidiary" dual-tiered management and control structure to ensure effective supplier lifecycle management.
6566
Operation of China-Europe Railway
Lines Operated by Xiamen XiangyuBenefiting All Embracing Low- Empowering Smart Improving Quality Cultivating
with Robust Carbon Style for a Xiangyu through through Steady Fostering Talent Partnerships for
Governance Green Xiangyu Digitalization and Innovative for HarmonyDevelopment Joint Achievement
2023 Environmental Social and Corporate Governance (ESG) Report
Xiamen Xiangyu's Dual-tier Management and Control Structure for Supplier Management ESG Due Diligence
To promote the sustainable development of the economic society Xiamen Xiangyu actively integrates ESG concepts
into every aspect of the industry chain. In conducting due diligence and making decisions regarding supplier
access and assessment the Company prefers to collaborate with outstanding enterprises on key ESG topics such as
environmental investment production environment safety and protection of employees' rights and interests. This
ensures that every aspect of the supply chain meets sustainable development requirements.Parent Company Subsidiary
Main Content of ESG Due Diligence Conducted by Xiamen Xiangyu
Responsible department: The Supplier Credit
Decision-making body: The Risk Management
Management Department is responsible for overseeing
Committee of Xiamen Xiangyu establishes the Environment Society
the Supplier management work of all business
Professional Supply Chain Operation Committee and
departments and directing and collaborating with the
its designee as decision-making body.Business Department to control Supplier risks. * P roduction and manufacturing suppliers in particular * We focus on the personal rights and interests and labor
those in the high-carbon industries are clearly required protection of an upstream supplier's employees. On
to pay attention to their environmental compliance one hand we track labor disputes and other causes of
issues including but not limited to whether their action and the existence production and safety-related
Responsible department: The Supplier Credit Primary unit: As the primary unit dealing with equipment conforms to environmental protection penalties via public channels. On the other hand
Management Department is responsible for overseeing suppliers the Business Department is responsible for requirements the advancement of production through inspections and exchanges we observe whether
the supplier management work and directing with the thoroughly assessing supplier credit in accordance technologies pollutant emission and waste utilization the working environment meets safety requirements
subsidiaries to control supplier risks. with the management requirements of the Company. design and rectification of historical environmental assess the awareness of safe production and understand
penalties. Relevant information is disclosed as a the working conditions and internal management of the
key factor in business statements. After a supplier is supplier's employees. Based on such information we
permitted to conduct business upon inspection we will evaluate the stability of the supplier's human resources.Supplier Lifecycle Management of Xiamen Xiangyu pay continuous attention to its environmental protection * We focus on the quality of suppliers' products and their efforts list negative public opinions as risks of high responsibility to suppliers having insight into their
concern internally through public opinion monitoring industry reputation from various aspects. We attach
procedures and adjust the business cooperation plan great importance to various issues such as malicious
* T horoughly assessing supplier s' credit and cooperation value based on suppliers'
Pre-event with the supplier as needed if there is certain impact fraud infringement of privacy and unfair competition.management overall profile including equity background primary business activities industry upon assessment by the functional risk control officer. If a supplier is found to lack social responsibility upon
reputation and financial data. investigation and verification it will be included on the
list of prohibited suppliers.During-event * Fully gathering and analyzing supplier s' public opinion information focusing on monitoring
management changes in supplier credit and making dynamic adjustments to business plans
Post-event * Jointly boosting the establishment of a supplier appraisal and marking system to
management conduct classified and hierarchical management of suppliers
In terms of supplier management strategies Xiamen Xiangyu implements classified and hierarchical management
of strategic suppliers. The Company encourages leaders at all levels to jointly participate in the maintenance of our
relationship with strategic suppliers and enhance the flexibility and effectiveness of resource consolidation to meet
their specific needs.
67 68Benefiting All Embracing Low- Empowering Smart Improving Quality
with Robust Carbon Style for a Xiangyu through through Steady Fostering Talent
Cultivating
Partnerships for
Governance Green Xiangyu Digitalization and Innovative for HarmonyDevelopment Joint Achievement
2023 Environmental Social and Corporate Governance (ESG) Report
05 Fostering Talent for Harmony
Xiamen Xiangyu firmly believes that talent is the cornerstone of enterprise development and the driving force behind our growth. To
align with our strategies of internationalization digitization and platform development we continuously refine our human resource
management system. We have established a comprehensive mechanism for talent recruitment development deployment and
management along with a robust employee relations framework ensuring our HR practices are fully aligned with our corporate
strategies. Furthermore we endeavor to cultivate a high-quality and sustainable talent pipeline to provide a solid foundation for
the Company's enduring growth. We also place a strong emphasis on social responsibility actively supporting the national rural
revitalization strategy. By engaging in initiatives like income-increasing projects and providing support to vulnerable groups we
proactively fulfill our corporate social responsibilities and contribute to the collective progress of society.
69 70Benefiting All Embracing Low- Empowering Smart Improving Quality Cultivating
with Robust Carbon Style for a Xiangyu through through Steady Fostering Talent
Governance Green Xiangyu Digitalization and Innovative for Harmony
Partnerships for
Development Joint Achievement
2023 Environmental Social and Corporate Governance (ESG) Report
Equal Employment Employees by Major in 2023 2%
Xiamen Xiangyu respects the professional background of every employee and has instituted a suite of HR
management rules including the Position Management Rules and the Recruitment Management Rules to ensure 30%
equitable treatment for all during the hiring process irrespective of nationality ethnicity gender religious belief 28%
or cultural background. Recognizing diversity as a pivotal catalyst for innovation and corporate growth we are
committed to developing a diverse talent ecosystem. In our overseas operations we proactively attract and hire
local talents through a localized recruitment approach. Currently our foreign workforce represents 1.2% of our total
employee base. We take tangible steps to demonstrate our respect for employee diversity and openness to global
talents thereby laying a solid groundwork for our international expansion and cultural integration.
9%
Employee Composition of Xiamen Xiangyu 18%
9%
Employees by Gender in 2023 Employees by Education Degree in 2023 4%
0.05% Production Sales Technology Finance Administration Service Others9.29%
35.76%
Our Employment Philosophy
46.01%
Performance- Not solely based Flexible in hiring/
44.65% based on status promotions
64.24%
Male Female Doctor Master Bachelor Junior College
and Below
Competency- Not solely based Not solely based
Employees by Age in 2023 Employees by Geographic Distribution in 2023 oriented on seniority on educational background
7.87%0.12%1.08%
Key Performance
17.51%
The Company had a total of 8565 employees of which 35.76% were female
35.11% with an upward trend year-on-year;
The Company employed 7 individuals with disabilities offering them positions
in accounting and warehouse management etc. which not only addressed the
39.51%
98.80% employment challenges faced by the disabled but also enhanced their quality of life
Employees Working in Employees Working in and empowered them to realize their full potential;
51 and Above 41 to 50 Chinese Mainland Hong Kong Macao and Additionally the Company employed 74 veterans actively assuming its social
31 to 40 30 and Below Employees Working in Other Taiwan responsibility to support veterans for their employment.
Countries and Regions
71 72Benefiting All Embracing Low- Empowering Smart Improving Quality Cultivating
with Robust Carbon Style for a Xiangyu through through Steady Fostering Talent Partnerships for
Governance Green Xiangyu Digitalization and Innovative for HarmonyDevelopment Joint Achievement
2023 Environmental Social and Corporate Governance (ESG) Report
Xiamen Xiangyu is committed to crafting an inclusive diverse and equitable recruitment system. In pursuit of this vision Employee Incentive Mechanism of Xiamen Xiangyu
we have developed a robust recruitment capability model clear qualification benchmarks and a fair career progression
framework.Internally we offer specialized training and certification programs for our interviewers tailored to the
specific position needs of each department and the criteria for talent selection and deployment so as to enhance their Reimbursement
professionalism in recruitment. Externally we use comprehensive methods such as professional assessment tools and Encouraging employees to actively participate in national provincial and industrial post-of Training and
skills certification.professional personality tests to fully assess the suitability of candidates. Certification Costs
Diversified Recruitment Channels at Xiamen Xiangyu
Encouraging employees to make use of the Company's internal and external training Employee Learning
resources to improve their business management knowledge. and Growth Award
Internal Competition Being allocated for annual awards recognizing outstanding teams and individuals year-General Manager
end bonuses for functional personnel and awards for exceptional contributors aimed at
Bonus
On-campus Recruitment encouraging proactive engagement and rewarding high-performing employees fairlyDiversified
Recruitment
Channels at Internal Referral Integrating the Company's interests with those of its shareholders and employees to inspire
Equity Incentive
Social Recruitment Xiamen Xiangyu the management team's passion for entrepreneurship.Cadre Rotation
Key Performance
To empower employees to partake in the prosperity of our enterprise and ensure
Remuneration and Benefits mutual growth of both individuals and the organization the Company launched equity
incentive plans in 2020 and 2022 respectively with the aggregate amount of shares
Xiamen Xiangyu is actively engaged in building an objective fair and scientifically sound value assessment system. We uphold allocated for incentives accounting for nearly 8% of its total share capital benefiting
the fundamental principle of value creation empowering our employees to unleash their full potential and creativity which not over 1000 key management personnel and frontline business team members.only facilitates personal growth but also propels the comprehensive advancement of our enterprise. Along with formulating the It is the first state-owned enterprise in Fujian Province to initiate the "stock option+
Remuneration Management Rules and the Performance Appraisal Management Rules we continue our efforts on refining our
restricted stock" hybrid equity incentive plan marking a significant stride in building
remuneration and benefits structure and setting standardized remuneration and benefits standards to ensure the growth and
development channels for value creators. Besides we have built an equitable and rational remuneration and incentive system a long-term incentive mechanism.that allows our employees to showcase their talents and achieve their career aspirations.Performance Appraisal System of Xiamen Xiangyu We are dedicated to offering an extensive range of benefits programs designed to enhance the quality of life for our
staff. In 2023 we have placed a special emphasis on safeguarding the welfare of our overseas employees ensuring
that they can focus wholeheartedly on their duties regardless of their geographical location.Remuneration Performance Application of
Appraisal Methods Employee Benefits System of Xiamen Xiangyu
Structure Management Appraisal Results
The employee Different appraisals are Quarterly semi-annual Employee appraisal results
remuneration is primarily organized on a monthly or annual performance are linked to training * Basic Social Insurances * E mployee Cafeteria
based on an assessment of quarterly semi-annual and interviews are needs performance * Housing Provident Funds * S taff Gym
their job capabilities and annual basis for employees conducted for effective bonuses promotion * Enterprise Annuity * E mployee Health Checkups
performance appraisal in different positions using communication and salary adjustment * C ommercial Insurances
consisting of base salary BSC KPI PBC 360-degree coaching. award evaluation Regular Benefits Featured Benefits
* B irthday Benefits
* Paid Leave * O verseas Employee Insurances
position-specific salary assessment and other and organizational/ * S pecial Subsidies * U nion Condolences
seniority salary and methods according to departmental * Statutory Holiday * " Spring Rain" Fund
bonus etc. the annual management performance etc. Benefits etc. * Employee Assistance Program etc.requirements.
7374
Internal Training
External SourcingBenefiting All Embracing Low- Empowering Smart Improving Quality Cultivating
with Robust Carbon Style for a Xiangyu through through Steady Fostering Talent
Governance Green Xiangyu Digitalization and Innovative for Harmony
Partnerships for
Development Joint Achievement
2023 Environmental Social and Corporate Governance (ESG) Report
Key Performance Solving the Problem of Childcare for Employees
In 2023 the Company allocated approximately RMB 457900 to cultural and Since 2022 our trade union has been organizing annual summer
sports activities and about RMB 537400 to employee condolences. childcare programs for our employees catering to nearly 80
children in total. These initiatives have been instrumental in
enabling parents to balance their professional commitments
with the joy of parenting. All expenses other than meal costs
were covered by our trade union thereby significantly easing
Cultural and Sports Activities for Employees the financial burden on the families of our employees. Beyond
providing essential care our summer childcare programs were
In 2023 the Company embraced a culture of care orchestrating a vibrant array of cultural and sporting enriched with a variety of activities and educational courses
activities to nurture a positive and vibrant environment. Seizing the opportunity of significant holidays including creative workshops safety education sessions and
such as the Lantern Festival International Women's Day Children's Day and the Mid-Autumn Festival the solar term-based food education so as to offer high-quality Summer Childcare Program for Employees of
Company curated a series of "Cultivating Well-being with Xiangyu" events which elevated employees' sense companionship for children during their holidays. Xiamen Xiangyu
of fulfillment and joy while also strengthening the unity and cohesion within the organization. Furthermore
the Company actively encouraged the formation of various staff interest groups including Tai Chi soccer
basketball badminton and foreign language fostering a "Happy Work Healthy Life" ethos within the Xiamen
Xiangyu family. Training and Promotion
Xiamen Xiangyu has crafted a sound employee training and talent development system that is anchored in both the
enhancement of organizational capabilities and the holistic growth of its employees. While establishing a suite of
management regulations including the Employee Training Management Regulations the Internal Trainer Management
Regulations and the Employee Rotation Management Regulations we offer our employees a wider array of career
development opportunities and help them to make continuous progress and growth on their career path.Distinctive Employee Growth Management System of Xiamen Xiangyu
"Three Vertical and Three Horizontal" Talent Training Focusing on Management Trainee Development
System
It encompasses training for senior middle and We formulate a management trainee training program
grassroots employees offering a variety of thematic with a three-year training cycle. Utilizing a meritocratic
training programs tailored to the distinct needs system and comprehensive training we have developed
of employees during their new term tenure and a young and dynamic middle management echelon
transition phases to meet the demands of sustainable characterized by high drive competitive spirit alignment
development across all levels in our talent pool. with company culture and versatile capabilities.Strengthening Key Position Talent Echelon Encouraging Talent Rotation
Construction
By integrating talent inventories implementation of Through strategic and targeted job rotation
individual development plans and mentorship guidance arrangements we develop versatile talents.we enhance the adequacy of our talent echelons and
optimize the age structure of our leadership teams.Festive Cultural and Sports Activities of Xiamen Xiangyu
75 76Benefiting All Embracing Low- Empowering Smart Improving Quality Cultivating
with Robust Carbon Style for a Xiangyu through through Steady Fostering Talent
Governance Green Xiangyu Digitalization and Innovative for Harmony
Partnerships for
Development Joint Achievement
2023 Environmental Social and Corporate Governance (ESG) Report
Employee Training Regarding the training of senior management Xiamen Xiangyu has established a comprehensive development program
that spans the entire career lifecycle of executives. Tailored empowerment projects are crafted to address the unique
In terms of talent training Xiamen Xiangyu continuously refines its multi-tiered personnel development and growth phases of each executive which employ a diverse array of teaching methodologies including in-person training
training system to inspire the intrinsic motivation of its talent pool. In 2023 the Company's training initiatives coaching and benchmarking visits integrating skill development with the resolution of real-world challenges to ensure
were closely aligned with the corporate development strategy annual management goals and organizational the practical applicability and effectiveness of the training.capacity enhancement. Leveraging the "three horizontal and three vertical" talent training system the Company
dedicated itself to international training business echelon development succession planning and specialized skill For the cultivation of high-potential middle-level cadres the Company has specially set up a "Middle-Level Young Cadres
enhancement throughout the year. Additionally the Company placed a strong emphasis on advancing the digital Training Class" known as the Youth Cadre Class to enhance management acumen and overall quality utilizing a variety
infrastructure of its learning platform launching a new online learning system that offered a a wealth of customized of training methods such as case studies interactive workshops thematic salons internal mobile classrooms and visits
training courses to meet the individual growth needs and career aspirations of its employees. to external enterprises with its curriculum including modules on "Integrity Education" "Xiamen Xiangyu Culture and
Strategic Planning" "Leadership and Organizational Development" "Risk Control and Crisis Management" and "Business
"Three Horizontal and Three Vertical" Talent Training System of Xiamen Xiangyu Perspective and Comprehensive Skills". Through these efforts we aim to nurture a high-caliber and versatile management
team to provide robust talent support for the Company's sustainable growth and innovation.Senior Management Training for New Business Management Training Class (Group) Key Performance
Senior Management
Visionary Leadership: of the Group Senior In 2023 the Company had a total of 4385 employees receiving training with a total training Ambition/corporate
culture/strategic Executive Rotation Class (Group) Management time of 94398 hours and an average training time of 22 hours per person.thinking/overall Training Class
planning/reform (Group)
and innovation/ Lingxiang Program
organization building/ (New Senior
leadership Management
Business & Functional Executive Competency
Training) Training Advancing Management Empowerment and Cultivating Leadership Talent
In 2023 the Company actively empowered new management cadres by enhancing their capabilities to excel in
their roles. The newly appointed middle-level cadres engaged in a multi-stage Management Training Program (MTP)
Middle Management Digital Business Financial Operation Logistics Risk Control Training Manager Manager Manager Manager Young Cadres yielding a rich harvest of 270 learning thinking and summary experience articles.Class
Class Class Class Class Class Training Class
(Group)
Guiding Path: Qixiang Program In addition the Company assembled a team of 15 distinguished middle and senior management personnel
Initiative/global (New Middle Strategic Board Human Administrative Safety Equipment and to serve as internal trainers to nurture and empower grassroots talents thereby laying a robust foundation for
vision/team building/ Management Investment Secretary Engineering
Class Training
Resources Management Management
Class Class Class Management the construction of its management talent echelons. Meanwhile the Company also selected key management communication and Training) Class Class
collaboration/risk personnel to participate in advanced enterprise management courses and leadership development programs
management Feixiang Program specifically designed to refine the competencies of the senior and middle management cadres enhancing their
Middle-Level Cadre Development Class (Group) (Executive Training) overall management proficiency.Chenxiang Program
Grassroots (New Campus-recruited
Employees & Management Chixiang Program Job Qualification Series Training + Job Examinations
Trainees Training) (Grassroots Core
Skills Excellence: Personnel Training)
Cultural integration/ On-boarding Training
execution/ for New Social-
professional quality/ recruited Employees
position-holding
ability
Tenure Transition Phase
New Term New Middle-Level Management Training Program (MTP) Venues of Xiamen Xiangyu
77 78Benefiting All Embracing Low- Empowering Smart Improving Quality Cultivating
with Robust Carbon Style for a Xiangyu through through Steady Fostering Talent Partnerships for
Governance Green Xiangyu Digitalization and Innovative for HarmonyDevelopment Joint Achievement
2023 Environmental Social and Corporate Governance (ESG) Report
Intensifying Focus on Key Talents and Strengthening Management Trainees' Comprehensive Capabilities Employee Rights
In 2023 the Company orchestrated 9 monthly empowerment sessions for 2022 management trainees and
inaugurated a 14-day "Xiangxinli" empowerment training camp for the 2023 cohort. Through a diverse Xiamen Xiangyu places strong emphasis on the democratic governance of our workforce. Through establishing and
curriculum comprising 21 courses and 10 thematic activities the "New Xiangxinli" training camp employed a refining relevant systems such as the Employee Congress Rules and the Measures for the Implementation of Open
variety of training methods including team development exercises structured practical training field visits Business Affairs we keep bolstering our employees' sense of participation and belonging and fostering an environment of
and studies film screenings thematic workshops competitions and course lectures immersing management openness and democratic management. Meanwhile we also ensure that our employees' perspectives are not only heard
trainees in Xiamen Xiangyu's culture deepening their understanding of the supply chain business model and but also given due consideration through the establishment of various flexible and diverse communication channels for
company systems and continuously elevating their strategic thinking operational proficiency and overall business transparency and feedback. Furthermore we regularly conduct various employee surveys actively seeking out
professional excellence. their opinions and suggestions provides personalized career development and growth opportunities helps employees
better achieve personal goals and career aspirations and enhances employee satisfaction.Employee Communication Channels of Xiamen Xiangyu
Face-to-face Written Online
Communication Communication Communication
* Annual business meeting * Daily and weekly reports * Company OA "Yu
* Symposium of leaders at * Special reports related to Message" etc.different levels daily operations etc.* M onthly meeting
* P erformance feedback
interview
* Daily talks
* T eam building activities etc.Trade Union Members Congress of Xiamen Xiangyu
"Xiangxinli" Management Trainee Empowerment Training Camp of Xiamen Xiangyu
Employee Promotion
Xiamen Xiangyu is dedicated to the continuous enhancement of its talent management system opening up dual
channels for professional and managerial advancement by clarifying and defining the criteria for talent selection
evaluation and appointment to broaden the development path of employees. In 2023 according to the latest
Guidance on the Management of the Organization and Position Rank System we further optimized our employees'
career trajectories offering a more expansive platform to showcase their abilities and thus sustaining the vibrancy
and dynamism of our talent pool.
79 80Benefiting All Embracing Low- Empowering Smart Improving Quality Cultivating
with Robust Carbon Style for a Xiangyu through through Steady Fostering Talent
Governance Green Xiangyu Digitalization and Innovative for Harmony
Partnerships for
Development Joint Achievement
2023 Environmental Social and Corporate Governance (ESG) Report
"Grassroots Engagement and Feedback Collection" Special Research Xiamen Xiangyu attaches great importance to the well-being of its employees considering their health and happiness as
a vital foundation for corporate growth. In addition to standard healthcare provisions the Company extends genuine care
From March to June 2023 the Company embarked on an immersive research program engaging with and affection offering holistic physical and mental health support by arranging complimentary annual health screenings
29 grassroots party organizations and 42 companies under the theme "Grassroots Engagement and providing comprehensive insurance coverage and implementing the Employee Assistance Program (EAP) among others.
Feedback Collection". After review a comprehensive collection of 280 insights and recommendations Besides our commitment to enhancing our facilities is ongoing driven by a deep understanding of our employees' needs
was compiled from these entities. Our dedicated research team meticulously recorded each piece of involving creating well-equipped staff canteens cozy living quarters and vibrant activity centers. Additionally we have
feedback assigning respective responsible departments and individuals making clear the corrective upgraded our break room installed state-of-the-art water filtration systems introduced a versatile coffee machine and
actions and establishing a timeline for such actions. Timely updates on the implementation of thoughtfully curated spaces such as a staff library and a mother-and-baby room. These efforts are aimed at refining the
these measures were given to the research unit to ensure follow-up and resolution. Meanwhile the office environment ensuring that every staff member experiences the Company's attentive care and fostering a symbiotic
Company has convened multiple symposiums to attentively gather and consider the opinions and growth between employees and the enterprise for sustainable development.suggestions from employees regarding equity with an ongoing commitment to refine and expedite
the integration of employee feedback and rectification. Employee Assistance Program (EAP)
Since its inception in 2020 Xiamen Xiangyu's EAP has been staffed by a team of professional psychological
counselors offering a spectrum of psychological support services tailored to various employee needs which
include a round-the-clock helpline group sessions individual consultations and mental health seminars
integrating the dissemination of mental health knowledge with personalized counseling. Our goal is to alleviate
stress and provide ongoing attention to the mental well-being of our workforce. Over the relevant reporting period
we have conducted a series of 12 educational seminars and facilitated 6 individual counseling sessions."Grassroots Engagement and Feedback Collection" Special Research at Xiamen Xiangyu
Occupational Health and Safety
Focusing on the implementation of a safety management system and the continual enhancement of safety management
Onsite Mental Health Seminar at Xiamen Xiangyu
and security capabilities Xiamen Xiangyu adheres to a holistic approach encapsulated by the "management
training equipment and team" framework ensuring that work safety responsibilities are effectively discharged at all
organizational levels. Guided by the principle of "not falling below the previous year's work safety target indicators Employee Assistance Program of Xiamen Xiangyu
reflecting ongoing improvement" we have set forth the occupational health safety and environmental protection goals
for 2023 to guarantee the continuous advancement of our safety performance. Teacher Allocation Ways to Consult Service Assurance
Occupational Health Safety and Environmental Protection Goals for 2023 of Xiamen Xiangyu
We have introduced authoritative industry We select a panel of offline consultants We prioritize privacy and have
consulting agencies to provide expert to provide regular on-site services equipped a dedicated consulting
No fatality accident; support in various domains including within our organization; room for secure and confidential
career development parent-child Additionally we offer online interactions;
No fire accident; relationships marriage love and family telephone and video consultations to Furthermore we have launched an
No environmental pollution accident; affairs; accommodate the needs of remote exclusive "Psychological Consultation
No network security accident; The consultant team is composed of and international employees. Reservation Platform" that operates on
psychology professors from Xiamen both PC and E-Link mobile terminals
No single accident resulted in a direct economic loss exceeding RMB 1 million; University Jimei University and other allowing employees to schedule
Ensuring the effective operation of the safety and environmental protection management system; universities chief physicians from top-tier appointments at their convenience.
100% pass rate for our special equipment testing; (3A) hospitals and full-time consultants
each with over five years of working
100% completion rate for our treatment of major hidden dangers; experience to ensure the delivery of high-
100% check-up rate for our employee occupational health. quality consulting services.
81 82Benefiting All Embracing Low- Empowering Smart Improving Quality
with Robust Carbon Style for a Xiangyu through through Steady Fostering Talent
Cultivating
Governance Green Xiangyu Digitalization and Innovative for Harmony
Partnerships for
Development Joint Achievement
2023 Environmental Social and Corporate Governance (ESG) Report
In terms of occupational health and safety Xiamen Xiangyu has set up a "1+3+X" HSE management system Policy and Strategic Objective of Occupational Health Safety and Environment Management at Xiamen Xiangyu
framework. A suite of core management documents including the HSE Management Manual the HSE Accountability
System and Objective Management Procedures the Occupational Health Safety and Environmental Protection
Education and Training Management Procedures the Emergency Management and Accident Management
Procedures and the General Emergency Response Plan has been developed and a dedicated work safety committee
has been established to enhance the integration of the system reinforce the implementation of responsibilities Strategic Objective Core Values Policy
and ensure the effective execution of various policies and measures. Through continuous policy updates and
Achieving a zero-incident zero- Safety paramount environment Adhering to a people-centric
organizational consolidation we will keep an eye on and continue to safeguard the occupational health and safety of pollution and zero-loss operation foremost people-centric approach prioritizing prevention
our employees. and establishing ourselves as a equipment sound. and proactive risk identification and
respected supply chain investment control fostering a harmonious and
and operation service provider. safe environment and paving the
Framework of Occupational Health Safety and Environment Management System at Xiamen Xiangyu way for sustainable development.Management Manuals
In strict compliance with national laws and regulations concerning the prevention and control of occupational
diseases the Company has established the Occupational Health Management Rules according to the Law on the
Management Procedures and Regulations
Prevention and Control of Occupational Diseases and the Regulations on the Management of Occupational Health
in Workplaces etc. and have conducted assessments of the primary factors that may lead to occupational disease
hazards to improve the management level of occupational disease prevention and control.Management Standards
Main Occupational-disease-inductive Factors
Management Manuals
Chemical Hazards Noise High Temperature Power Frequency Electric Field
Procedure Documents
Dust (Grain Dust) Welding Dust Coal Dust
Assignment Files
8384
Headquarters Affiliates
HSE Management System of the CompanyBenefiting All Embracing Low- Empowering Smart Improving Quality through Steady Fostering Talent Cultivating with Robust Carbon Style for a Xiangyu through
Governance Green Xiangyu Digitalization and Innovative for Harmony
Partnerships for
Development Joint Achievement
2023 Environmental Social and Corporate Governance (ESG) Report
Installing AED First Aid Equipment to Ensure Life Safety of Employees Safety Culture Building
Xiamen Xiangyu has conducted a thorough analysis
and evaluation of the feasibility and necessity of Team Safety Standardization Initiative
installing AED on its office premises. Based on this
an implementation plan for the AED rescue initiative * F ormulating * S electing pilot * N ominating
was established (incorporating the placement of implementation programs for team benchmarks for team
plans for team safety
equipment and the deployment of personnel) safety standardization safety standardization standardization construction construction
followed by investment in the "Life-Saving" AED first construction
aid equipment service achieving comprehensive
coverage of AED devices throughout the Xiamen
Xiangyu Group building. Additionally ten certified
AHA first aid professionals have been engaged to Good Operation and Accident Warning
ensure the life safety of all employees."Life-Saving" AED First Aid Equipment at Xiamen Xiangyu * P romotion of excellent * I mplementing accident * A pplying positive
work practices warning education incentives and negative
criticism notifications
Key Performance
The Company allocated a total of RMB 4.89 million in work safety of which
Planning for Building a Safety Culture
RMB 380000 was made for employee occupational health and safety showing
an upward trend year-on-year; * D eveloping a safety * I nstilling the philosophy * P romoting visual safety
460 employees participated in occupational disease physical examination with a culture blueprint based of a distinctive safety management
100% coverage rate for positions at risk of occupational diseases; on Xiamen Xiangyu culture
The Company carried out 132 safety emergency training sessions across its invested culture
enterprises and 89 safety emergency drills with a total of 3130 participants.Xiamen Xiangyu places great emphasis on cultivating a safety culture and the nurturing of "soft power" essential for
the enterprise's safety development. The Company regularly organizes offline training for its safety management
team and conducts safety preparedness lectures to continuously enhance staff safety expertise. Currently the
Company boasts a certification rate of 25.6% for registered safety engineers and 5.8% for first-level registered fire
engineers. Meanwhile in line with the Special Work Safety Inspection and Safety Management Standardization
Team Construction Supervision Plan of Xiamen Xiangyu Group the Company continues to advance the supervision
over the safety management standardization teams. These teams are guided to compile data results focusing on
improving quality efficiency customer service operational assurance and other areas presenting findings through
visual graphics and videos. With these efforts the Company has successfully established 4 exemplary teams
including the Rizhao Xiangming Oils Refining Team and the Suihua Xiangyu Jinggu Agricultural Machinery Repair
Team. Furthermore we have vigorously implemented best operational and management practices with a total
of 180 applications for award and an excellent award rate of 27.8% over three years. Besides the Company also
strengthens scientific and technological innovation actively introducing and promoting new safety technologies
which reduce costs increase efficiency and ensure safety. These initiatives provide robust support for constructing a The Second "Safety Army" Management Core Personnel Refining Team of Xiangming Oils
superior occupational safety and health environment management system. Training Class of Xiamen Xiangyu
85 86Benefiting All Embracing Low- Empowering Smart Improving Quality
with Robust Carbon Style for a Xiangyu through through Steady Fostering Talent
Cultivating
Governance Green Xiangyu Digitalization and Innovative for Harmony
Partnerships for
Development Joint Achievement
2023 Environmental Social and Corporate Governance (ESG) Report
Key Performance
During the reporting periodThe Company organized 14 safety meetings with over
340 participants; hosted 7 seminars on occupational safety with 324 participants;
and compiled and selected 18 exemplary practice outcomes;
The Company conducted a total of 18 safety assessment and service guidance
activities addressing 18 complex issues including those on the high slope risk
management and the evaluation and enhancement of fire protection facilities;
organized 14 daily safety inspections 11 special inspections and 4 quarterly
supervisory checks covering over 52 job sites issuing 20 on-site safety inspection
records.Emergency Linkage Comprehensive Drill
From May to June 2023 in order to further amplify the outreach and education surrounding
disaster prevention and reduction we spearheaded a comprehensive drill involving over 1100
participants from our affiliated investment enterprises at our headquarters for fire emergency
evacuation exercises and practical firefighting operation training. The successful holding of this
activity not only bolstered the safety consciousness among our staff but also tested the viability of
our emergency plans and the proficiency of our employees in practical operations laying a solid
foundation for building a safer working environment.Emergency Drill of Xiamen Xiangyu
Examples of Safety Culture Walls of Grassroots Business Units of Xiamen Xiangyu
87 88Benefiting All Embracing Low- Empowering Smart Improving Quality
with Robust Carbon Style for a Xiangyu through through Steady Fostering Talent
Cultivating
Partnerships for
Governance Green Xiangyu Digitalization and Innovative for HarmonyDevelopment Joint Achievement
2023 Environmental Social and Corporate Governance (ESG) Report
Public Welfare Activities Social Welfare
Xiamen Xiangyu always bears in mind its social responsibility and is committed to giving back to society. We actively Xiamen Xiangyu values fostering a sense of social responsibility among its employees encouraging them to actively
engaged in a series of activities including enthusiastic social charities environmental conservation efforts and engage with social issues in their daily lives. A variety of public welfare training sessions and events were organized
legal promotion campaigns to demonstrate our corporate compassion. In addition we are at the forefront of rural regularly for employees to inspire their enthusiasm for philanthropy and to channel positive energy into society
revitalization initiatives earnestly fulfilling our political and social responsibilities in targeted assistance programs through tangible actions. In 2023 we conducted a total of 43 employee volunteer activities reflecting our ongoing
thereby contributing to the construction of a better society. concern and positive contributions to the realm of social welfare.Rural Revitalization
In 2023 Xiamen Xiangyu guided by the Thought of Xi Jinping on Socialism with Chinese Characteristics for a New
Era diligently embraced and implemented the spirit of the 20th National Congress of the CPC. We fully executed the
strategic plan of the Central Government to consolidate and expand the achievements of poverty alleviation and
to comprehensively promote rural revitalization facilitating the growth of village collectives with relatively weaker
economic strength and ensuring they share the fruits of economic prosperity. Through proactive engagement in
rural revitalization projects which is a testament to our commitment to social responsibilities and our dedication to
the undertaking of state-owned enterprises we have made due contributions to fostering social equity harmony
and sustainable development.Xiamen Xiangyu Management Engaging in Joint Construction Support Activity
Key Performance
In 2023 the Company participated in a total of 4 rural revitalization projects.Industrial Assistance Project in Guoxi Village Xiamen Fujian Province
In 2023 the Company took a proactive stance in assist ing Guoxi Vi l lage in Xiamen Fuj ian
Province with its industrial growth. We revitalized dormant land resources and brought to life
the village's inherent cultural heritage. By advertising space construction we created outdoor
publicity platforms. We enhanced consumer support initiatives and expanded avenues for income
generation. Additionally through measures such as improving road governance and cultivating a
good civilized environment we helped the village to meet its collective economic income target of
RMB 500000 ahead of schedule by the end of 2023."Xiamen Xiangyu - Guoxi Village" Assistance Project Xiamen Xiangyu Employee Volunteer Activity
89 90Benefiting All Embracing Low- Empowering Smart Improving Quality through Steady Fostering Talent Cultivating with Robust Carbon Style for a Xiangyu through Partnerships for
Governance Green Xiangyu Digitalization and Innovative for HarmonyDevelopment Joint Achievement
2023 Environmental Social and Corporate Governance (ESG) Report
Xiangyu SOE Carrying Out "Warmth on Double Nine Festival" Condolence Activity Xiangming Oils' Initiative in Laws Education Volunteer Service
In October 2023 Xiangyu SOE initiated visitations during the Double Ninth Festival to honor the In December 2023 Xiangming Oils took a proactive step in fulfilling its social responsibilities by
Company's retired staff and impoverished elderly in Tianhougong Village Nantong City Jiangsu organizing a volunteer service aimed at law education and publicity for frontline staff including
Province. These visits were to convey condolences and festive greetings embodying the Company's truck drivers security guards and canteen workers. During the activity volunteers employed real-
warmth and care. The Company will continue to uphold this tradition diligently performing its duty to life scenarios to elucidate legal provisions using "case interpretation" to effectively foster legal
comfort retired employees and striving to give back to society. consciousness among participants encouraging them to respect learn comply with and use the law.Xiangyu SOE Visiting the Centenarian in Tianhougong Village Xiangyu SOE Visiting Retirees Volunteers of Xiamen Xiangyu in Action
Xiangyu SOE's Pre-Spring Festival Visits to Employees in Hardship "One-Day No-Driving" Environmental Awareness Campaign
In January 2023 the trade union of Xiangyu SOE reached out to eight employees facing difficulties. In February 2023 Xiamen Xiangyu Group responded to the call for green travel by regularly conducting
During these visits the trade union representatives engaged in warm conversations with the affected the "One-Day No-Driving" campaign taking tangible actions to jointly build a more eco-friendly Egret
employees gaining an in-depth understanding of their family and health conditions and provided Island and Xiamen. On the designated day employees typically accustomed to driving opted for public
them with financial assistance on behalf of the Company and the trade union. transportation shared bicycles or walking and other more environmentally friendly modes as their
means of commuting showcasing the Company's active advocacy of a low-carbon lifestyle.Xiamen Xiangyu Trade Union Representatives Visiting Employees in Hardship
91 92Benefiting All Embracing Low- Empowering Smart Improving Quality
with Robust Carbon Style for a Xiangyu through through Steady Fostering Talent
Cultivating
and Innovative for Harmony Partnerships for Governance Green Xiangyu Digitalization Development Joint Achievement
2023 Environmental Social and Corporate Governance (ESG) Report
06 Cultivating Partnerships for Joint Achievement
Xiamen Xiangyu consistently views openness and collaboration as essential to innovation and shared progress continuously
expanding its international perspective and incorporating wisdom and experience from across the industry and beyond. Guided
by this philosophy the Company actively participates in industry-academia-research partnerships establishing close ties with
educational institutions and industrial associations to share knowledge discuss technological advancements and jointly explore
new opportunities in the supply chain sector. These extensive partnerships and exchanges have pooled the expertise of professionals
across various fields fostering innovation and advancement in supply chain management driving to create a symbiotic ecosystem
that promotes mutual benefits and leads the industry towards sustainable growth.
93 94Benefiting All Embracing Low- Empowering Smart Improving Quality Cultivating
with Robust Carbon Style for a Xiangyu through through Steady Fostering Talent Partnerships for
Governance Green Xiangyu Digitalization and Innovative for HarmonyDevelopment Joint Achievement
2023 Environmental Social and Corporate Governance (ESG) Report
Industry-Academia-Research Collaboration Hong Kong Universities' Employment Exchange Events
In 2023 Xiamen Xiangyu has furthered its engagement with higher education institutions to nurture industry- In November 2023 we were honored to be invited to the Innovation Hong Kong-Global Talent Carnival
academia-research collaboration creating a positive brand image among outstanding students. In the future we will and the Chinese University of Hong Kong's Career Fair enabling the enhancement of our partnership
continue to invest in the career trajectories of students offering competency training and career guidance to support with educational institutions within the Guangdong-Hong Kong-Macao Greater Bay Area. During the
their professional development while refining the talent cultivation and development mechanisms within school- events we engaged proactively with top-tier university students showcasing our career advancement
enterprise partnerships to establish exemplary models of collaboration and enhance our employer brand presence opportunities and corporate ethos and addressing students' inquiries regarding career planning and
and market recognition on campuses. development. Concurrently we held in-depth discussions with leading universities on talent cultivation
and recruitment strategies exploring new models of collaboration between academia and industry."Xiangxinli Cup" Industry Research Competition These efforts have infused new energy into the educational and industrial landscape of the Greater Bay
Area while solidifying a robust foundation for our talent pool and future development.In July 2023 Xiamen Xiangyu spearheaded the Third "Xiangxinli
Cup" Industry Research Competition drawing participation from
89 teams across 60 universities including the Renmin University of
China Central University of Finance and Economics and Xiamen
University with a total of 239 participants. The competition
focused on three key topics within the national consumer
goods sector: "refined oil" "live pig" and "lithium carbonate".Participants delved into research and analysis around these topics
forecasting the future of relevant industries and presenting their
findings. Through the Competition Xiamen Xiangyu not only The Scene of Hong Kong Universities' Employment Exchange Events Involved by Xiamen Xiangyu
honed the practical skills and professional caliber of the students
but also strengthened the Company's ties with the academic
community providing invaluable resources and opportunities for
The Scene of the Third "Xiangxinli Cup"
talent scouting and development. Renowned Enterprise Studio of Southwestern University of Finance and EconomicsCompetition at Xiamen Xiangyu
In December 2023 our leaders were invited to participate in the career cafe event of Southwestern University
School-Enterprise Activities with Singapore's Premier Universities of Finance and Economics where we witnessed the launch of the Renowned Enterprise Studio. During the
In October 2023 Xiamen Xiangyu was invited to partake in the career fair and school-enterprise symposium at event our leaders presented the evolution business paradigms and global outreach strategies of Xiamen
the National University of Singapore and Nanyang Technological University. During the activities the Company Xiangyu to the attendees and shared classic cases of the Company in actual operation. Furthermore they
engaged in profound discussions with university faculties regarding collaborative initiatives internships and provided profound insights on unleashing individual potential and bolstering job-hunting competitiveness.employment training for students and actively provided career planning guidance and development support for
the students. Through interactive Q&A sessions the Company gained a deeper understanding of students' career
confusions and aspirations promoting the career advancement of overseas students while fostering closer school-
enterprise relationships realizing the complementary strengths of both educational institutions and the corporate
sector and broadening the overseas reach of Xiamen Xiangyu's employer brand.Xiamen Xiangyu Participating in the Offline Career Fair Xiamen Xiangyu International HRBP Invited to Participate in The Scene of School-Enterprise Synergy at the Renowned Enterprise Studio of Southwestern University of
of National University of Singapore the NTU Career Symposium as an Alumnus Finance and Economics Involved by Xiamen Xiangyu
95 96Benefiting All Embracing Low- Empowering Smart Improving Quality Cultivating
with Robust Carbon Style for a Xiangyu through through Steady Fostering Talent
Governance Green Xiangyu Digitalization and Innovative for Harmony
Partnerships for
Development Joint Achievement
2023 Environmental Social and Corporate Governance (ESG) Report
Industry Cooperation
In 2023 Xiamen Xiangyu continued its efforts to propel breakthroughs in standardization and industry dialogue. Preparation of Industry Standards Participated by Xiamen Xiangyu
We actively contribute to the establishment of industry and group standards fostering a collaborative environment
for knowledge and outcome sharing. Besides we attach great importance to extensive interactions and alliances
with industry peers collectively envisioning and charting the industry's future. This reflects our dedication to the Standard ParticipationTime Release Time Standard Name Standard No.industry's sustainable growth and our role in supporting the high-caliber development of the entire industry. Classification
Mar. 2021 Jul. 2022 Basic Requirements for Digital Warehouses Industry WB/T 1118-2022
Standard Preparation Standard
Mar. 2021 Jul. 2022 Evaluation Standards for Digital Warehouses Industry WB/T 1119-2022
Leveraging our industry leadership we spearhead the creation of industry benchmarks driving technological Standard
evolution and sectoral enhancement through involvement in the development of industry and group standards. We Classification and Evaluation Index for Supply Group
Jun. 2022 Jan. 2023 T/CFLP0051-2022
have participated in the formulation of the Basic Requirements for Digital Warehouses and the Evaluation Standards Chain Finance Service Providers Standard
for Digital Warehouses issued by the National Development and Reform Commission which provide vital guidance Evaluation Index for Green Logistics of Industry
and reference value for industry progression amplifying our industry influence and catalyzing the industry's digital Jun. 2021 Aug. 2023 Logistics Service Providers WB/T 1134-2023 Standard
and intelligent transformation.Requirements of the Greenhouse Gas
Key Performance: Jun. 2021 Aug. 2023 Emission Accounting and Reporting for
Industry
WB/T 1135-2023
Logistics Service Providers Standard
4 3 Basic Requirements for Digital Steel Group By the end of 2023 industry standards and group standards with our participation Dec. 2021 Dec. 2023 Warehouses T/CFLP 0060-2023 Standard
have been released and implemented.Basic Requirements for Digital Coal Group
Dec. 2021 Dec. 2023 Warehouses T/CFLP 0061-2023 Standard
Advanced Unit of Building China's Digital Warehousing Standard System 2023
Industry Exchange
In 2023 we participated in the preparation of group standards such as the Basic Requirements for Digital Steel
Warehouses and the Basic Requirements for Digital Coal Warehouses offering digital warehouse application
scenarios and a technical reference basis for supply chain enterprises. These efforts earned us the esteemed Adhering to the strategic thinking of "basing on supply chains serving industry chains and creating value chains" Xiamen
"Advanced Unit of Building China's Digital Warehousing Standard System 2023" accolade. The honor is a Xiangyu fosters deeper partnerships with various industry associations and engages proactively in various industry
testament to our expertise in digital warehousing and an acknowledgment of our contributions to supply exchange events. Alongside industry pioneers we are exploring cutting-edge supply chain management methodologies
chain innovation and standard setting. and paradigms to propel the evolution of industry benchmarks. We keep absorbing fresh perspectives and insights
enriching our repository of industry knowledge and expertise. Meanwhile we take pride in sharing Xiamen Xiangyu's
specialized acumen and hands-on experience in supply chain management offering a wellspring of reference for the
industry's advancement in pursuit of a stable global industry and supply chain operation.Key Performance:
In 2023 the Company participated in 35 industry forums and technical exchanges
including the National Enterprise Management Innovation Conference Wuhan Financial
Expo China International Supply Chain Expo and "The Belt and Road" Modern Agriculture
and Food Security Development Cooperation Summit Forum.Xiamen Xiangyu Honored as a "Advanced Unit of Building China's Digital Warehousing Standard System 2023"
97 98Benefiting All Embracing Low- Empowering Smart Improving Quality Cultivating
with Robust Carbon Style for a Xiangyu through through Steady Fostering Talent Partnerships for
Governance Green Xiangyu Digitalization and Innovative for HarmonyDevelopment Joint Achievement
2023 Environmental Social and Corporate Governance (ESG) Report
Role of Xiamen Xiangyu and Its Senior Executives in Certain Industry Associations Green Chain Movement for a Promising New Future
In April 2023 the Company participated as a strategic partner in the Yulin International Coal and High-end
Name of Association Join Time Position Energy and Chemical Industry Expo having profound exchanges and interactions with peers in the energy and
chemical industry to co-explore new pathways for the industry's transformation and upgrade. Looking ahead
Digital Warehousing Branch China Federation of Logistics & Purchasing 2023 Vice-chairman we will leverage Yulin Xiangdao Logistics Co. Ltd.'s international logistics park as a central hub actively
China Society of Grain Economics 2023 Council Member involving in and supporting the local economic development strategy of the Yulin Municipal Committee and
Government.Xiamen Logistics Standardization Technical Committee 2023 Chairman
Xiamen Modern Supply Chain Federation 2022 Vice-chairman
China Iron and Steel Association 2021 Member
China Grain Industry Association 2020 Vice-chairman
China Coal Transportation and Distribution Association 2020 Member
Xiamen Association of Grain Sector 2019 Chairman
Xiamen Free Trade Zone Chamber of Commerce 2018 Vice-chairman
Fujian Food Industry Association 2016 Member
Industry Exchange and Interaction Involved by Xiamen Xiangyu
Xiamen Association of Listed Companies 2011 Vice-chairman
Hubei Chuxiang Delivering Keynote Speech at the Economic and Trade Negotiation Event Empowering Driven by Innovation and Digital Intelligence
In March 2023 Hubei Chuxiang a subsidiar y of In April 2023 the Company was invited to deliver a keynote speech at the National Enterprise Management
Xiamen Xiangyu was honored as a special guest at the Innovation Conference. The presentation was made around "Digital Intelligence-Driven Multimodal Transport
"Meeting Spring Cherry Blossom" Economic and Trade Systems and Supply Chain Services" showcasing the Company's achievements and insights on enhancing
Negotiation and the World Top 500 Dialogue Event in technological applications and improving service efficiency.Hubei. During the event Hubei Chuxiang presented on
the topic of "Supply Chain Service Models in the New
Development Pattern". As a pivotal supply chain platform
in Hubei Province Hubei Chuxiang will continue to
enhance collaboration with local businesses explore
innovative supply chain service models and establish a
comprehensive supply chain service system integrating
procurement and distribution full-process logistics
inventory management supply chain finance digital
services and other functions at the aim of propelling
regional economic growth and actively contributing to
the high-quality development of the local economy. Presentation by Wang Bin the General Manager of Sun Gang Assistant General Manager of Xiamen Xiangyu Delivering a Keynote Speech
Hubei Chuxiang
99 1002023 Environmental Social and Corporate Governance (ESG) Report Xiamen Xiangyu Co. Ltd.
Unveiling "Xiangyu Red" at the First China International Supply Chain Expo ESG Performance
In November 2023 Xiamen Xiangyu a leading domestic commodity supply chain service enterprise in
China participated in the First China International Supply Chain Expo. At this key Expo the Company
comprehensively displayed its business approach of basing on supply chains serving industry chains and Indicators 2023 Data Unit
creating value chains.Corporate Governance Indicators
Number of Meetings of the Board of Directors Held 15 Time
Number of Meetings of the Board of Supervisors Held 8 Time
Number of General Meetings of Shareholders Held 6 Time
Number of Meetings of the Audit Committee Held 10 Time
Number of Meetings of the Remuneration and Appraisal
4 Time
Committee
Number of Meetings of the Investment and Development
The Booth of Xiamen Xiangyu at the Expo 1 Time(Strategy) Committee Held
Number of Members of the Board of Directors 9 Person
Number of Independent Directors 3 Person
Global Food Security - A Shared Journey
Number of Female Directors 1 Person
In December 2023 Chen Daizhen Chairman of Xiangyu Agricultural Products delivered a keynote speech
at "The Belt and Road" Modern Agriculture and Food Security Development Cooperation Summit Forum Average Length of Tenure of Directors 3.56 Year
sharing the Company's practical experiences in promoting cooperation in food and agriculture under the
Belt and Road Initiative and engaged in discussions with industry experts government leaders business Average Age of Directors 56.33 Age
representatives and scholars on new methods and models to enhance the resilience of the food industry
chain and supply chain thereby improving global food security levels. Number of Members of the Board of Supervisors 3 Person
Number of Employee Supervisors 1 Person
Number of Copies of Periodic Announcements Issued 4 Copy
Number of Copies of Interim Announcements Issued 80 Copy
Number of Investor Questions Answered on the SSE
50 Piece
E-interactive
Number of Investor Calls Taken 300 Time
Number of Investor Relations Emails Handled 100 Piece
Number of Investor Exchange Events 8 Session
Chen Daizhen Deputy General Manager of Xiamen Xiangyu Giving a Keynote Speech
101 1022023 Environmental Social and Corporate Governance (ESG) Report Xiamen Xiangyu Co. Ltd.
Indicators 2023 Data Unit Indicators 2023 Data Unit
Number of Anti-corruption Training 15 Session Number of Female Employees 3063 Person
Number of Major Cybersecurity Incidents 0 EA By Age
Number of Confirmed Cybersecurity Incidents 0 EA Number of Employees Aged 30 and Below 3007 Person
Number of Cybersecurity Training 4 Time Number of Employees Aged 31 to 40 3384 Person
Number of Cybersecurity Emergency Drills 1 Time Number of Employees Aged 40 to 50 1500 Person
Number of Confirmed Data Breaches 0 EA Number of Employees Aged 51 and Above 674 Person
Economic and Service Indicators By Geographic Distribution
Operating Incomes 4590.35 RMB 100 million Number of Employees Working in Chinese Mainland 8462 Person
Net Profits Attributable to Shareholders of the Listed Number of Employees Working in Hong Kong Macao and
15.74 RMB 100 million 10 Person
Company Taiwan
Investments in Digital Construction 23083 RMB10000 Number of Employees Working in Other Countries and
93 Person
Regions
Number of Digital Construction Empowerment Training 40 Session
By Education Degree
Number of Employees Participating in Training Related to
825 Person-Time
Digital Construction Number of Employees with Doctoral Degree 4 Person
Number of Management Personnel Participating in Training Number of Employees with master's degree 796 Person
240 Person-Time
Related to Digital Construction
Number of Employees with bachelor's degree 3941 Person
Number of Full-Time Employees at The Headquarters
18 Person
Responsible for the Company's Information Construction Number of Employees with associate degree 3824 Person
Number of Talents Transferred to Departments (Itbp) 110 Person By Major
Number of New Patents and Intellectual Property Rights 4 Piece Percentage of Production Personnel 27 %
Employee and Social Indicators Percentage of Salespeople 18 %
Total Number of Employees 8565 Person Percentage of Technicians 3 %
Number of Employees with Disabilities 7 Person Percentage of Financial Personnel 9 %
Number of Professional Military Employees 74 Person Percentage of Administrative Staff 16 %
By Gender Percentage of Service Personnel 24 %
Number of Male Employees 5502 Person Number of Other Personnel 2 %
103 1042023 Environmental Social and Corporate Governance (ESG) Report Xiamen Xiangyu Co. Ltd.
Indicators 2023 Data Unit Indicators 2023 Data Unit
Number of Employees Receiving Training 4385 Person-Time Water Conservation (Recycle/Reuse Water) 16406 m3
Length of Training Received by Employees 94398 Hours Total Exhaust Emissions 156734937 m3
Length of Training per Employee 22 Hours Particulate Matter Content of Exhaust 90.789 mg/m3
Investments in Work Safety 489 RMB10000 Nitrogen Oxide Content of Exhaust 443.735 mg/m3
Number of Employees Participating in Occupational Sulfur Oxide Content of Exhaust 367 mg/m3
460 Person
Disease Physical Examinations
Vocs Emissions of Exhaust 20.1 mg/m3
Physical Examination Coverage Rate of Positions at Risk of
100%
Occupational Diseases Total Wastewater Discharge 55063 m3
Number of Safety Emergency Training 132 Session Chemical Oxygen Demand (Cod) of Wastewater 8.749 mg/L
Number of Safety Emergency Drills 89 Time Five-Day Bod (Bod5) of Wastewater 2.039 mg/L
Number of Employee Volunteering Activities 43 Time Suspended Solids Content of Wastewater 1.66 mg/L
Number of Rural Revitalization Projects Involved 4 EA Ammonia Nitrogen Content of Wastewater 0.484 mg/L
Number of Industry Forums and Technical Exchange
35 Time Total Phosphorus of Wastewater 0.8782 mg/L
Meetings Involved
Total General Solid Waste 2086.7 Ton
Total tax paid 322861.40 RMB 10000
Total Hazardous Waste 4.47354 Ton
Environmental Indicators
Investments in Energy Conservation and Emission
675 RMB 10000
Reduction
Raw Coal Consumption 23768.91 Ton
Fuel Oil Consumption 190.29 Ton
Diesel Consumption 12110990.80 L
Gasoline Consumption 360421.01 L
Natural Gas Consumption 431369 m3
Steam Consumption 173202.45 m3
Purchased Electricity Consumption 36232975.20 kWh
Total Water Use 170860 m3
105 1062023 Environmental Social and Corporate Governance (ESG) Report Xiamen Xiangyu Co. Ltd.
Index Contents GRI Standards
G2-23 Policy commitments
Risk Management
G2-24 Embedding policy commitments
In the preparation of the 2023 Environmental Social and Governance (ESG) Report of Xiamen Xiangyu Co.Instructions Ltd. (Reporting Period: January 1 to December 31 2023) we referred to GRI Standards for reporting the G2-25 Processes to remediate negative impacts
information cited in this GRI Index. Business Ethics G2-26 Mechanisms for seeking advice and raising concerns
G205-2 Communication and training about anti-corruption policies and procedures
GRI 1 Used GRI 1: Foundation 2021
Embracing Low-Carbon Style for a Green Xiangyu
G2-23 Policy commitments
Environmental Management G2-24 Embedding policy commitments
Contents GRI Standards G403-5 Worker training on occupational health and safety
G2-1 Organizational details G302-1 Energy consumption within the organization
G2-2 Entities included in the organization's sustainability reporting G302-5 Reductions in energy requirements of products and services
About This Report Energy Saving and Emission Reduction
G2-3 Reporting period frequency and contact point G303-5 Water consumption
G2-4 Restatements of information G305-5 Reduction of GHG emissions
G2-11 Chair of the highest governance body G303-2 Management of water discharge-related impacts
Message from the Chairman G2-17 Collective knowledge of the highest governance body Three Wastes Treatment G306-2 Management of significant waste-related impacts
G2-22 Statement on sustainable development strategy G306-3 Waste generated
G2-6 Activities value chain and other business relationships Empowering Smart Xiangyu Through Digitalization
About Xiamen Xiangyu
G201-1 Direct economic value generated and distributed
Digital Framework /
G2-13 Delegation of responsibility for managing impacts
Digital System /
G2-14 Role of the highest governance body in sustainability reporting
G2-16 Communication of critical concerns Information Security /
Sustainable Development Management G2-22 Statement on sustainable development strategy
G2-29 Approach to stakeholder engagement Improving Quality Through Steady and Innovative Development
G3-1 Process to determine material topics
G3-2 List of material topics G2-25 Processes to remediate negative impacts
Quality Management G416-1 Assessment of the health and safety impacts of product and service
Benefiting All With Robust Governance categories
Party Building G2-12 Role of the highest governance body in overseeing the management of impacts Logistics Capability /
G2-9 Governance structure and composition G308-1 New suppliers that were screened using environmental criteria
G2-11 Chair of the highest governance body Supplier Management G414-1 New suppliers that were screened using social criteria
G2-12 Role of the highest governance body in overseeing the management of impacts
G2-15 Conflicts of interest
Corporate Governance Fostering Talent for Harmony
G2-19 Remuneration policies
G2-20 Process to determine remuneration G2-7 Employees
G2-27 Compliance with laws and regulations G2-23 Policy commitments
G405-1 Diversity of governance bodies and employees G2-24 Embedding policy commitments
Equal Employment
G405-1 Diversity of governance bodies and employees
Information Disclosure and Investor
G2-16 Communication of critical concerns G413-1 Operations with local community engagement impact assessments and
Relations Management development programs
107 1082023 Environmental Social and Corporate Governance (ESG) Report Xiamen Xiangyu Co. Ltd.
Contents GRI Standards Reader Feedback
G2-19 Remuneration policies
G2-20 Process to determine remuneration Dear Readers
Remuneration and Benefits G201-3 Defined benefit plan obligations and other retirement plans
G401-2 Benefits provided to full-time employees that are not provided to temporary Thank you for reading the 2023 Environmental Social and Governance (ESG) Report of Xiamen Xiangyu Co. Ltd..or part-time employees In order to provide you and other stakeholders with more professional and valuable ESG information of us please
assist us in completing the feedback form so as to help us further improve our ESG work in the future.G404-1 Average hours of training per year per employee
Training Enhancement
G404-2 Programs for upgrading employee skills and transition assistance Multiple Choice Questions (Please click as appropriate)
G403-4 Worker participation consultation and communication on occupational 1. For Xiamen Xiangyu you are a/an
Employee Rights
health and safety □ Employee □ Customer □ Consumer □ Supplier □ Regulator □ Media □ Others (please specify)
G403-1 Occupational health and safety management system 2. What is your overall assessment of this report
G403-2 Hazard identification risk assessment and incident investigation □ Very good □ Good □ Medium □ Poor □ Very poor
G403-3 Occupational health services
G403-5 Worker training on occupational health and safety 3. What do you think of the quality of the content of this report
Occupational Health and Safety G403-6 Promotion of worker health
G403-7 Prevention and mitigation of occupational health and safety impacts directly □ Very good □ Good □ Medium □ Poor □ Very poor
linked by business relationships 4. What do you think of the structure of this report
G403-8 Workers covered by an occupational health and safety management system
G403-10 Work-related ill health □ Very reasonable □ Reasonable □ Medium □ Poor □ Very poor
G203-1 Infrastructure investments and services supported 5. What do you think of the layout design and the presentation of this report
Public Welfare Activities
G203-2 Significant indirect economic impacts □ Very good □ Good □ Medium □ Poor □ Very poor
Cultivating Partnerships for Joint Achievement 6. What do you think of Xiamen Xiangyu's overall performance on environmental issues
□ Very good □ Good □ Medium □ Poor □ Very poor
Industry-Academia-Research
/
Collaboration 7. What do you think of Xiamen Xiangyu's overall performance on social issues
Industry Cooperation G2-28 Membership associations □ Very good □ Good □ Medium □ Poor □ Very poor
8. What do you think of Xiamen Xiangyu's overall performance on governance issues
□ Very good □ Good □ Medium □ Poor □ Very poor
Open Questions:
1.What information of your interest do you think needs to be further disclosed in this report
2.What are your comments and suggestions on the ESG work of Xiamen Xiangyu
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