Stock Code: 600057 Stock Abbreviation: Xiamen Xiangyu

Xiamen Xiangyu Co. Ltd.2025 Annual Report (Summary)

This report is prepared in both Chinese and English. The Chinese version shall prevail in case of any

discrepancy between the Chinese and English texts.To Shareholders

In 2025 the global trade and economic landscape underwent profound adjustments and

supply chain operations became increasingly complex. In response we remained resolute

and action-oriented. Although our performance for the period was impacted by short-term

abnormal market volatility the Company’s underlying fundamentals remained solid and

continued to improve with an even stronger foundation for sustainable development.Firstly we accelerated our international expansion. As the scale of our “Buy Globally SellGlobally” business expanded significantly our capabilities in international industrial

logistics were further strengthened and the quality and value contribution of our international

operations continued to improve.Secondly we advanced organizational transformation to unlock efficiency gains. The steel

agricultural products and mining & energy segments took the lead in establishing industrial

sub-groups significantly enhancing operational and management effectiveness.Thirdly we further deepened our presence across the industrial chain. By expanding

vertically along the value chain into integrated procurement production and logistics

projects while also unlocking diversified value-added services around core industrial clients

our industrial chain operations have become more deeply embedded.Fourthly we strengthened innovation-driven growth momentum. The scale of our digital and

intelligent platform services expanded rapidly while capabilities in carbon trading carbon

management and new energy power plant investment and operation have been steadily

developed creating long-term growth drivers for the Company.Over the past five years commodity cycles have risen and fallen and change has come in

waves. Amid shifting tides we navigated steadily through volatility achieving cumulative

operating volumes of over 1.1 billion metric tons maintaining counter-cyclical growth in

market share and further consolidating our leading position among China’s bulk commodity

supply chain enterprises. Through perseverance we have steadily strengthened our resilience.In the face of cyclical fluctuations we have across successive generations of leadership

2remained steadfast in our founding mission of “Rooted in Supply Chains Serving IndustryChains and Creating Value Chains”. We have maintained strategic discipline continuously

refined our operating strategies optimized resource allocation and steadily enhanced

business resilience.Amid an accelerating restructuring of the global industrial landscape external uncertainties

and structural opportunities are emerging in parallel. We reflect on past experience and

outcomes and set out a forward-looking blueprint for development. Over the next five years

the Company will focus on the “Three New and One High” development strategy. Embracing

a new positioning as a co-builder and organizer of industrial chains we will adopt an asset

management mindset to diversify profit contributors advance a multi-factor operating model

encompassing “Resources Trading Logistics Services Manufacturing and Investment”1

and drive high-quality growth through organizational transformation. We will steadily

advance toward our vision of becoming a global pioneer in industrial chain operations driven

by supply chain services.The clarion call for a new journey has emerged and we set sail toward the future with full

determination. Having been tested by both headwinds and tailwinds we are confident that

our development model is strategically sound and increasingly resilient. Looking ahead we

will fully leverage the past experience and lessons uphold a long-term strategic discipline

and strengthen our foundational capabilities in research risk management derivatives and

pricing management. We will further deepen the substance of our supply chain services

reinforce competitive advantages at key nodes of the industrial chain and strive for

continuous self-transcendence delivering sustained value creation and enhanced returns for

our shareholders.Xiamen Xiangyu Co. Ltd.Chairman: Jie Wu

April 24 2026

1 Resources refer to the intensified layout of key resources including mineral resources and grain sources;

Trading refers to expanding and optimizing the trade circulation of core commodities; Logistics refers for

integrating resources to establish an efficient and coordinated multimodal transport network and intelligent

supply chain platform; Services refer to the development of high-value-added integrated supply chain services

and productive service solutions; Manufacturing(manufacturing-trade integration) refers to appropriate

engagement in key processing and manufacturing sectors; and Investment refers to strategic investment

incubation across the industrial chain

3I. Key Accounting Data and Financial Indicators

Unit: RMB Billion

FY2025 FY2024 YoY Change (%) FY2023

Total Assets 128.70 123.87 3.89 129.71

Equity Attributable

to the Shareholders 31.65 23.82 32.88 20.84of the Listed

Company

Operating Revenue 410.29 366.67 11.9 459.04

Total Profit 2.27 2.28 -0.34 2.45

Net Profit

Attributable to the

Shareholders of the 1.29 1.42 -8.87 1.57

Listed Company

Net profits

Attributable to the

Shareholders of the

Listed Company 1.79 0.41 339.13 0.51

before

Nonrecurring Gains

and Losses

Net Cash

Generated from 10.10 5.60 80.17 5.59

Operating Activities

Weighted Average

Return on Net Assets 5.01 7.15 Decreased by 2.14

(%) pp

9.29

Basic Earnings Per

Share (RMB/share) 0.30 0.48 -37.50 0.63

Diluted Earnings Per

Share (RMB/share) 0.30 0.48 -37.50 0.63

II. Industry Analysis During the Reporting Period

1. Analysis of the Industry's Operating Conditions

In 2025 confronted with a complex and challenging environment marked by rare external shocks and the

interplay of multiple domestic difficulties China’s economy forged ahead under pressure and

demonstrated strong resilience. With the government implementing more proactive and effective

macroeconomic policies expanding domestic demand accelerating the development of new-quality

productive forces and driving the recovery and improvement of industrial enterprise profitability the

construction of a unified national market continued to advance and the efficiency of cross-regional

resource allocation was further enhanced. Against this backdrop the bulk commodity supply chain

industry is expected to experience marginal improvements in both demand and profitability. Meanwhile

amid intensifying geopolitical competition and escalating technological rivalry global industrial chains

1are undergoing a rapid transition from highly globalized specialization toward regionalized and multi-

centered structures. The rise of emerging markets together with the restructuring of global commodity

trade flows presents valuable opportunities for Chinese bulk commodity supply chain enterprises to

expand their overseas presence and unlock incremental growth in international markets.Nevertheless it is important to note that Chinese bulk commodity supply chain enterprises still face

considerable challenges. First increased volatility in commodity prices coupled with a widening basis

between futures and spot prices has imposed greater pressure on inventory management risk control and

operational stability across the industry chain enterprises. Second amid China’s ongoing economic

transformation certain sectors are encountering structural adjustment pressures. Third the international

trade environment has shifted rapidly with a sharp escalation in unilateralism and protectionism leading

to frequent disruptions in market expectations and significant pressure on foreign trade.Facing multiple external uncertainties leading bulk commodity supply chain enterprises are seizing

opportunities arising from structural market upgrading. By focusing on systematic capability enhancement

deeper full-chain integration global expansion structural adaptation and innovation-driven development

they are well positioned to break through current challenges and accelerate market share amid ongoing

industry consolidation.

2. Industry Development Trends

(1) Evolving Customer Demand DrivingMarket Share Expansion Through Systematic Capabilities

Against the backdrop of heightened geopolitical uncertainty volatility in spot and futures prices of bulk

commodities has intensified increasing operational challenges for bulk supply chain enterprises. Under

this evolving landscape manufacturing clients are placing higher demands on supply chain services in

terms of security cost efficiency and operational effectiveness. The development trajectory of leading

overseas supply chain enterprises indicates that as the industry matures and market conditions fluctuate

small and medium-sized supply chain players—constrained by limited resource integration capabilities

underdeveloped risk management frameworks and weaker capital strength—struggle to adapt to highly

volatile markets and increasingly refined operational requirements and are consequently phased out or

consolidated. Leading bulk supply chain enterprises are continuously upgrading toward higher efficiency

greater value-added services and global expansion thereby enhancing systemic risk resilience capturing

opportunities amid global competition and market adjustments and building sustainable moats for high-

2quality development. On a volume basis the CR52 market share3 of China’s bulk supply chain industry

increased from 4.81% in 2021 to 6.20%4 in 2025. Although the industry remains relatively fragmented

overall the rising concentration among leading players has become an inevitable trend.Figure 1：Operating Volume and Market Share of CR5 Figure 2：the Company’s Revenue and Market Share

in China’s Bulk Supply Chain Industry in China's Bulk Supply Chain Industry

(2) Deepened Industrial Chain Operations Strengthening Competitive Advantage

Amid an increasingly complex market environment the competitive dynamics of the bulk commodity

supply chain industry are undergoing structural shifts. On the one hand manufacturing demand remains

resilient with the circulation scale of industrial goods staying broadly stable. On the other hand as policy

guidance such as efforts to curb excessive competition continues to strengthen disorderly price-based

competition is gradually diminishing and the competitive landscape is shifting from scale expansion and

price competition toward a more comprehensive model centered on resource acquisition capabilities and

industrial organization capabilities. Against this backdrop leading supply chain enterprises are

accelerating their transformation from traditional traders to industrial chain resource operators. While

strengthening their capabilities in resource control and allocation and reinforcing multimodal logistics

systems these enterprises are continuously extending service boundaries and expanding upstream and

downstream along the industrial chain driving a transition in profit models from single margin-driven

structures to diversified revenue streams. Leading enterprises with strong resource integration capabilities

and full-chain service offerings are well positioned to further consolidate their competitive advantages

amid ongoing industry restructuring. Leading enterprises with strong resource integration capabilities and

2 specifically referring to Wuchan Zhongda Group Co. Ltd. Xiamen C&D Inc. Xiamen ITG Group Corp.Ltd. Xiamen Xiangyu Co.

Ltd. Zheshang Development Group Co. Ltd..

3 the CR5 market share = the CR5 business scale/ the scale of China’s bulk supply chain market scale where the CR5 business scale

represents the combined operating (or sales) volume of the supply chain segments of the CR5 companies and the scale of China’s bulk

supply chain market scale is the sum of the domestic production and import volumes of major bulk commodities.

4 for CR5 companies that have not disclosed full-year operating/sales volume estimates are based on doubling their half-year volume

data.

3full-chain service offerings are well positioned to further consolidate their competitive advantages amid

ongoing industry restructuring.

(3) Global Resource Anchoring and Overseas Expansion Reinforcing Supply Chain Security

Amid profound shifts in the global geopolitical landscape supply chain security has been elevated to a

matter of national strategy. Anchoring critical mineral resources and building independently controllable

global supply networks have become essential for bulk commodity supply chain enterprises to serve

broader national priorities and achieve high-quality development. As the Belt and Road Initiative

continues to gain traction and the benefits of the Regional Comprehensive Economic Partnership (RCEP)

are further unlocked Southeast Asia Africa and the Middle East are emerging as key nodes in global

resource supply. Chinese enterprises are accelerating overseas mineral resource development and face an

urgent need for professional supply chain services to support project execution along these corridors

presenting strategic opportunities for leading enterprises with strong resource integration capabilities.Leading enterprises are establishing overseas logistics platforms through a combination of self-

development and strategic partnerships connecting critical logistics nodes to achieve end-to-end

independently controllable supply chains from resource origins to end markets. At the same time these

enterprises are accelerating localized operations by setting up local entities and building international

teams deeply integrating into local business ecosystems. This enables them to effectively address key pain

points faced by industrial clients in their global expansion including supply chain resilience and logistics

cost efficiency.

(4) New Quality Productive Forces Reshaping Commodity Demand Upgrading

Under the policy direction of vigorously developing new-quality productive forces the large-scale

expansion of strategic emerging industries such as AI embodied intelligence and commercial space is

continuously driving structural upgrades in demand for bulk commodities. For example in the AI data

center sector high-density cabling and the integration of high-power computing and electricity

consumption are boosting demand for non-ferrous metals such as copper and aluminum. In this context

leading bulk commodity supply chain enterprises—leveraging their global footprint full-chain service

capabilities and well-established risk management systems—are well positioned to capture long-term

growth opportunities driven by new-quality productive forces. This is achieved by proactively securing

4upstream high-end production capacity expanding into downstream emerging industry customers and

focusing on high value-added product segments.

(5) Emerging Technologies and New Paradigms Enabling Supply Chain Innovation and Value

Extension

Digitalization and green transformation are not only defining trends but also key drivers reshaping the

competitive landscape and unlocking new value creation opportunities within the industry. On the digital

front technologies such as AI big data and the Internet of Things (IoT) are rapidly penetrating the entire

supply chain. Leading enterprises are actively exploring the integration of vertical AI large models into

business scenarios where data flows increasingly drive the efficient coordination of commercial flows

logistics flows and capital flows. This is becoming a critical pathway for achieving precise matching

dynamic optimization and value uplift across bulk commodity supply chains. From a sustainability

perspective the global transition toward green and low-carbon development is accelerating. The

momentum behind emerging sectors—including carbon trading green power trading green supply chains

and green logistics—continues to strengthen fundamentally reshaping industrial supply chain and value

chain structures. Leveraging their integrated advantages across the industrial chain leading supply chain

enterprises are well positioned to support and empower these emerging industries growing alongside them

while continuously cultivating new growth curves.III. Business Analysis During the Reporting Period

The Company specializes in bulk supply chain services with manufacturing enterprises as its core

customers. It provides comprehensive supply chain solutions covering the procurement of bulk raw and

auxiliary materials product distribution logistics and delivery supply chain finance and information

consulting etc. To support its core supply chain business the Company has been among the first in the

industry to establish a global logistics service system built on a foundation of highway railway waterway

and warehousing while accelerating the coordinated development of integrated logistics and industrial

logistics. Amid industry cycles the Company has further expanded its operating scope by entering the

manufacturing sector and extending its value chain presence. It has developed three major manufacturing

segments namely shipbuilding mineral processing and oil processing. In addition it maintains deep

synergies with its controlling shareholder in manufacturing segments across the stainless steel aluminum

5and corn industrial chains thereby further enhancing and amplifying its supply chain service capabilities.

1. Commodity Segment

Based on customer needs and its own business philosophy the Company applies the following product

selection criteria: * high liquidity and easy monetization; * high standardization and easy storage; *

substantial demand with extended industrial chains that enable integrated multi-stage services.Guided by a multi-factor synergy strategy the Company will further optimize its business portfolio in a

systematic manner building a more resilient and multi-layered development structure. With a focus on

four core industry clusters—metals agricultural products new energy and energy & chemicals—the

Company has established a commodity portfolio covering seven key categories namely ferrous metals

aluminum stainless steel new energy coal oil and grains. By leveraging diversification across industries

value chain stages and geographic regions the Company mitigates cyclical risks while unlocking full

value across the entire industrial chain.Figure 3: Revenue Breakdown by Commodity Category (2025)

In terms of customer structure the Company’s service volume for manufacturing clients exceeded 60% in

2025. Specifically over 70% of services were within the new energy ferrous metals and stainless steel

supply chains; over 60% within the aluminum coal and grain supply chains; and over 50% within the

petroleum and chemicals supply chains.

62. Business Model

The Company has always adhered to a customer-centric approach extending upstream to secure resources

and downstream to expand channels along the industry chain. Its service offerings have evolved from

single-point solutions to an integrated “full-industry chain service model” with Xiangyu characteristics

covering raw material procurement finished product distribution inventory management warehousing

and logistics supply chain finance. After achieving service advantages across the entire industry chain

the Company seized the opportunity to tap into value-adding manufacturing segments forming an

industrial chain operation model of “Supply Chain Services + Production Manufacturing” which further

enhanced comprehensive revenue profitability and buffered cyclical fluctuations.Figure 4：Company's Operating Model

3. Profit Model

The Company’s profitability is primarily driven by service income and scale-based consolidation gains

supplemented by price differential gains while further enriching its profit model through an asset

management-oriented approach. A detailed breakdown and explanation of the Company’s profit structure

are presented in the table below.

7Table 1: Profit Structure and Definitions

Types of Profit Interpretation

Leveraging its platform advantages and scaled operations the Company provides customers

comprehensive services across the entire industry chain. These offerings encompass procurement and

Service Profits

sales processing logistics and distribution supply chain finance and information consulting through

which the Company generates service-based revenue.Scale-based

Relying on its large business scale the Company achieves cost advantages through centralized

Profit from

procurement and specialized operations reducing operational costs across various segments and

Cargo

Transaction generating trading gains.Consolidation

Profits Profits By leveraging its expertise in professional analysis the Company conduct trades by studying

from Price commodity price trends over time and regional price differences across various areas to generate

Disparities profitability.IV. Management Discussion and Analysis of Business Operation

Over the past five years (2021–2025) the Company has continuously consolidated its leading position

among bulk commodity supply chain enterprises in China achieving counter-cyclical growth in market

share and recording cumulative operating volume exceeding 1.1 billion metric tons thereby maintaining

a stable business foundation amid a complex and challenging economic environment. While enduring

external shocks and growing pains the Company has remained strategically vigilant adhered to the

development directions of “platformization internationalization and digital-intelligence transformation”

enhanced its integrated supply chain service capabilities strengthened the competitive edges of its global

multimodal logistics service system deepened the integration of logistics and trading as well as investment

and research support and explored the transformation into a comprehensive full-industry-chain operator

forging steadily ahead toward a new journey of development.

1. Key Operating Results for 2025

(1) Key Operating Results for 2025

Amid a complex and challenging industry and market environment the Company demonstrated resilience

and continued to advance steadily. While maintaining a leading market share it has initially establishedan integrated full-industry-chain operating framework encompassing “Resources Trading LogisticsServices Processing and Investment.” Its differentiated competitiveness continued to strengthen

8sustaining a stable and positive development trajectory and laying a solid foundation for the next five-year

phase. During the reporting period the Company achieved revenue of 410.3 billion RMB up 11.90%

year-on-year; net profit attributable to shareholders of 1.293 billion RMB down 8.87% year-on-year; and

net profit of 1.967 billion RMB up 4.04% year-on-year. Operational turnover efficiency improved

significantly further strengthening its foundation for sustainable development.First resource advantages and industrial market share continued to improve steadily. During the

Reporting Period operating volume reached 266 million metric tons representing a year-on-year increase

of 18.5% further consolidating the Company’s industry position and resource channel advantages. Among

key segments aluminum new energy materials and Mongolian coal maintained leading market shares

while oil products thermal coal and nickel ore expanded rapidly. The integration of the ferrous metals

industrial chain delivered phased results with enhanced specialized operations and simultaneous growth

in iron ore volume and profitability. The aluminum supply chain deepened localized operations in

resource-rich countries and strengthened multi-dimensional cooperation with leading mining enterprises

and industrial clients maintaining stable scale in core products while expanding into other non-ferrous

metals. In agricultural products the Company optimized operating strategies and business structure

resulting in a significant recovery in profitability. The coal supply chain expanded import and re-export

businesses increasing market share amid market volatility while the petroleum supply chain continued to

grow in both scale and profitability.Second accelerated integration of industrial logistics and professional logistics. The aluminumlogistics segment coordinated industrial chain demand with logistics resources to develop a “China–WestAfrica” two-way full-truck round-trip circulation model. The new energy logistics segment strengthened

its advantages on the “China–Southeast Asia” and “China–Africa” routes achieving steady growth in

critical mineral import logistics full-chain logistics for plant construction projects and overseas

deployment of photovoltaic and energy storage power stations. The steel logistics segment expanded

international shipping routes covering Indonesia Europe and the Middle East with a global industrial

logistics service system gradually taking shape. Xiangdao Logistics deepened its focus on core segments

such as coal and aluminum strengthened business coordination and expansion significantly improved

operational efficiency and effectiveness and substantially narrowed its net losses.

9Third integrated development of industry and trading with innovation in supply chain services. The

Company significantly expanded the scale of its YuLianTong and ZhiYun platforms. It further optimized

the integrated “trading + processing + logistics” model by strengthening the network of processing centers

and improving operational quality. The Company also explored a full lifecycle operational model for new

energy power stations covering project acquisition design construction operation and exit. In addition

it promoted structured trading models with embedded rights and explored new business models such as

carbon trading and carbon management delivering integrated solutions for industrial clients and driving

operational efficiency through continuous model innovation.Fourth accelerated investment to expand global footprint and enhance quality. The Company

deepened its presence in overseas mineral resources across supply chains including aluminum petroleum

stainless steel and new energy expanding resource channels through localized subsidiaries equity

investments and long-term agreements. In 2025 the Company established 11 overseas entities in regions

including South Africa Brazil Guinea Nigeria and Malaysia further strengthening its localized

operations. It also invested in the international IPO project of Nanshan Aluminum enhancing strategic

collaboration with leading industrial clients while generating investment returns and expanding

incremental business opportunities.Fifth solid performance in the manufacturing segment. The shipbuilding segment delivered 28 vessels

during the year with net profit margins ranking among the highest in the industry. It also rapidly completed

the upgrading and transformation of the Qidong shipyard restoring full operational capacity. The oils

processing segment built cost advantages through capacity consolidation and scale expansion achieving

an average operating rate of 90% and a capacity utilization rate of 94%.

(2) Key Management Achievements in 2025

At the outset of the new five-year period (2026–2030) the Company’s management together with allemployees has advanced under the overarching priorities of “enhancing quality fostering innovation andstrengthening risk control” achieving notable progress in strategic refinement organizational

transformation investment and research integration risk management enhancement capital operations

and digital-intelligence enablement.First strategic refinement to anchor long-term direction. Through nearly one hundred strategic

10workshops the Company systematically reviewed past performance and aligned on future development

objectives successfully completing the formulation and cascading of its next five-year strategic plan. Ithas established a closed-loop management system of “strategic planning – budget targets – performanceevaluation” facilitating the effective translation of top-level design into tangible operating results.Second organizational transformation to unlock vitality. The Company advanced the integration of

its steel agricultural products and energy & minerals segments streamlined underperforming business

units strengthened resource coordination and improved operational efficiency. It has also initiated the

establishment of a logistics industry group an international business division and a resource division to

enhance resource sharing and organizational effectiveness.Third deepened investment and research systems to support operations. The Company evaluated and

advanced nearly 50 investment projects across categories including minerals processing and logistics

progressively building full industrial chain investment and operational capabilities with an asset

management mindset. It has also strengthened the two-way linkage between research business and

functional teams forming a research framework that guides short-term operations with medium- to long-

term perspectives thereby enhancing operational support.Fourth strengthened risk management to safeguard development. The Company implemented tiered

authorization mechanisms based on different stages of business development and management maturity

and improved dynamic authorization evaluation systems. It enhanced risk early warning and response

mechanisms and expanded digital risk management tools. Through systematic review of key policies and

critical risk points and strengthened supervision over key processes the Company reinforced coordinated

risk prevention mechanisms under the accountability of business unit general managers further improving

risk resilience.Fifth capital operations to drive growth. The Company introduced two strategic investors—China

Merchants Group and Shandong Port Group—and completed an RMB 3.22 billion A-share refinancing

achieving dual empowerment in capital and resources. This also further optimized the composition of the

Board of Directors injecting strong momentum into the Company’s high-quality and sustainable

development.Sixth digital-intelligence enablement to enhance quality and efficiency. The Company promoted the

11rollout of next-generation core ERP systems and other key systems establishing an intelligent

management and data governance support framework. Leveraging massive business data and diverse bulk

commodity application scenarios it has deeply embedded AI technologies across the full business process

incubating AI products such as the intelligent assistant “YuXiang Tongxue”. It has also advanced planning

for multimodal logistics large-model applications and implemented AI use cases across multiple scenarios

unlocking the value creation potential of AI.

2. Key Business Data for 2025

(1) Bulk Commodity Trading

The Company leverages bulk commodities as its core business entering into comprehensive agreements

with clients to offer integrated supply chain services encompassing procurement distribution logistics

supply chain finance information consulting and processing. The revenue and profitability from this

segment are reflected in the results of core commodity trading as outlined below:

Unit: billion RMB

Combined Futures and Combined Futures and Spot

Operating Volume Operating Revenue

Spot Gross Profit Gross Profit Margin

Category Volume

(10000 YOY Amount YOY Amount YOY Value YOY

metric tons)

Decreased by

Commodity Trading 26601 18.50% 385.2 11.56% 4.14 -34.45% 1.08%

0.75 pp

Among these: Decreased by

149396.83%214.1-0.37%3.80-16.19%1.78%

Metallic Mineral 0.34 pp

Increased by

Energy and Chemical 9865 40.52% 103.1 28.74% 1.20 42.66% 1.16%

0.11 pp

Increased by

Agricultural Products 1677 20.69% 47.2 17.30% 0.86 125.33% 1.83%

0.88 pp

Not

New Energy 120 122.54% 18.1 95.93% -1.80 -9.95% Not Applicable

Applicable

Note:

a. To support its physical supply chain operations the Company uses futures instruments to hedge against commodity

price volatility. As a result fair value changes and gains or losses on disposal are recognized. The reported gross profit

and gross margin on a combined spot-and-futures basis incorporate the impact of hedging results from futures positions.b. During the reporting period losses arising from futures hedging in the new energy supply chain were recognized in

the current financial statements while the corresponding spot transactions are to be gradually completed and delivered

in accordance with contractual arrangements. As such the related spot-side profits have not yet been recognized

12resulting in a negative combined spot-and-futures gross profit for the current period.

Metallic Mineral: In the ferrous metals supply chain the restructuring of the organizational framework

has shown initial effectiveness. The Company optimized its product mix deepened integration of trading

and industrial operations and achieved a year-on-year increase of approximately 14% in iron ore operating

volume while steel trading volume surged by more than 50% year-on-year. In the aluminum supply chain

the Company expanded overseas resource channels and downstream processing capabilities maintaining

a leading market position in terms of operating scale with a year-on-year improvement in combined spot-

and-futures gross margin. However due to adjustments to the product and business structures of the

stainless steel supply chain and weak downstream end-market demand for coking coal and coke the

combined futures and spot gross profit of the metals and minerals supply chain decreased year-on-year.Energy and Chemical: In the energy and chemicals segment the coal supply chain further strengthened

procurement and sales channel development and accelerated international expansion increasing long-term

contracts and overseas sales resulting in over 30% year-on-year growth in operating volume. In the oil

products supply chain the Company deepened cooperation with core customers while expanding upstream

sourcing channels and downstream customer networks achieving significant growth in both operating

volume and profitability.Agricultural Products: The Company strengthened flow-based operations inventory rolling strategies

and international business expansion driving year-on-year growth in operating volume and continued

improvement in profitability. In particular international soybean trading volume increased by

approximately 60% year-on-year while service-oriented business volume grew by 30%. Innovative

models such as “LiangLianTong” and “XiangXinLiang” made an increasing contribution to overall

performance.New Energy: In the new energy segment the Company focused on key production regions in Australia

South America and Africa as well as domestic regions including Jiangxi Sichuan and Qinghai. It

established a highly integrated upstream and downstream customer structure centered on overseas mines

and processing plants cathode material producers battery manufacturers and large international trading

houses. Leveraging its strengths in upstream resources refining and processing and logistics the

Company achieved over 120% year-on-year growth in overall operating volume.

13(2) Bulk Commodity Logistics

The Company’s logistics system not only responds to the needs of its internal supply chain operations but

also leverages internally generated business flows to build market-oriented service capabilities thereby

reinforcing its supply chain business through mutual empowerment between commodity trading and

logistics services. At the same time the Company has developed integrated industrial logistics capabilities

to provide end-to-end supply chain logistics solutions alongside specialized logistics capabilities to ensure

effective execution and delivery of such solutions. This has accelerated the development of a logistics

system in which industrial chain resources and logistics service capabilities reinforce each other. The

operating results of the Company’s market-oriented logistics services are accounted for separately as

detailed below:

Unit: billion RMB

Operating Revenue Gross Profit Gross Profit Margin

Category

Amount YOY Amount YOY Value YOY

Bulk Commodity Logistics 11.7 24.34% 0.98 17.13% 8.37% Decreased by 0.51 pp

Among these

8.7 10.40% 0.77 7.83% 8.83% Decreased by 0.21 pp

1. Specialized Logistics

1.1 Integrated Logistics 5.4 8.05% 0.60 3.65% 11.06% Decreased by 0.47 pp

1.2 Rail Logistics 3.3 14.58% 0.17 26.23% 5.11% Increased by 0.47 pp

2. Industrial Logistics 3.0 95.87% 0.21 70.72% 7.02% Decreased by 1.03 pp

2.1 New Energy Logistics 1.3 16.24% 0.11 32.42% 8.00% Increased by 0.98 pp

2.2 Aluminum Industry

1.1 606.42% 0.06 344.60% 5.00% Decreased by 2.95 pp

Logistics

2.3 Agricultural Products

0.6 136.12% 0.05 59.10% 8.64% Decreased by 4.18 pp

Logistics

Note:

a. Railway logistics agricultural logistics and aluminum industry logistics refer to the market-oriented logistics services

provided by the Company’s subsidiaries Xiangdao Logistics Xiangyu Agricultural Products and Xiangyu Aluminum

Union respectively.b. Integrated logistics refers to the market-oriented logistics services offered by Xiangyu Superchain and other logistics

subsidiaries primarily including international shipping routes cross-border rail freight services inland waterway

transport highway transportation and domestic and overseas warehousing.Integrated Logistics: In the integrated logistics segment the Company continued to expand its industrial

client base and further strengthened its core logistics corridors and node advantages across China and key

international markets including Southeast Asia Africa South America Europe and Central Asia. It also

14obtained delivery warehouse qualifications for additional commodities such as silicomanganese

ferrosilicon and offset paper building a futures delivery warehouse system covering 19 categories of bulk

commodities. As a result operating volume increased steadily driving year-on-year growth in both

revenue and gross profit. However due to limited incremental demand in the transportation market and

intensified competition profit margins were compressed leading to a decline in gross margin.Rail Logistics: the Company continued to focus on core commodities such as coal and aluminum with

the “Xinjiang coal outbound transportation” business reaching a record high increasing by nearly 30%

year-on-year. Through ongoing optimization of logistics resource allocation activation of internal assets

and expansion into asset-light nodes together with strengthened lean management and cost control

operating efficiency and profitability improved significantly.New Energy Logistics: the Company deepened its presence in key markets in Southeast Asia and Africa

leveraging its competitive advantages in international multimodal transportation services to provide end-

to-end sea-and-land logistics solutions to customers achieving relatively high gross margins. New routes

including Australia–Indonesia Vietnam–Indonesia and China–Indonesia were launched creating new

profit growth drivers.Aluminum Industry Logistics: the Company expanded its shipping business and optimized its customer

portfolio continuously enhancing the competitiveness of core and premium routes. By deepening

localized operations and exploring downstream logistics opportunities operating volume increased

significantly. As the aluminum logistics business remains in an early stage of development gross margin

experienced certain fluctuations due to ongoing optimization of business and customer structure.Agricultural Products Logistics: the Company strengthened multi-party cooperation and expandedtransportation of new commodity categories while further enhancing the “North-to-South GrainTransportation” corridor resulting in steady growth in overall transportation volume. At the same time

idle warehouse capacity was activated improving overall storage utilization. Due to the rapid growth of

transportation-focused logistics business—whose gross margin is lower than that of traditional grain

storage services such as state and provincial reserves—the overall gross margin of the segment declined

year-on-year. Nevertheless gross profit increased significantly compared to the prior year.

(3) Production & Manufacturing

15Following the establishment of service advantages across the full industrial chain the Company has

strategically expanded into selected manufacturing segments with strong value-accretive potential

developing an integrated industrial chain operating model of “Supply Chain Services + Manufacturing.”

This approach enhances overall returns and mitigates the impact of cyclical industry fluctuations. The

operating results of the manufacturing segment for the current period are as follows:

Unit: billion RMB

Operating Revenue Gross Profit Gross Profit Margin

Category

Amount YOY Amount YOY Value YOY

Production & Manufacturing 12.7 14.17% 1.49 14.98% 11.68% Increase by 0.08 pp

Among these:

6.4 8.81% 1.11 3.90% 17.32% Decrease by 0.82 pp

Shipbuilding

Note:

a. The manufacturing segment includes shipbuilding beneficiation and oil processing. The business entity of shipbuilding

sector is the Company's subsidiary Nantong Xiangyu Shipbuilding & Offshore Engineering.b. The data for the shipbuilding segment in the table above does not include gains or losses on hedging through financial

instruments; the hedge-adjusted gross profit margin after fully incorporating hedging results increased year on year.In the shipbuilding segment the Company significantly enhanced its brand value and market influence in

the global medium-sized bulk carrier and specialized chemical tanker markets. In 2025 it secured 53 new

vessel orders and delivered 28 vessels with further reductions in delivery cycles and profit margins

remaining among the highest in the industry. The Company also successfully commenced operations at

the Qidong shipyard in 2025 effectively increasing production capacity. Upon reaching full capacity total

shipbuilding capacity is expected to increase by over 40%. As of the end of the reporting period the

Company’s order backlog stood at 114 vessels with production scheduled through 2029.

3. Case Study: Ferrous Metals Supply Chain Operations

Against the backdrop of a restructuring global economic landscape and ongoing transformation in the steel

industry the Company began exploring internal industrial resource integration since 2023 seeking an

optimal path toward more specialized and intensive development. In 2025 the Company consolidated its

ferrous metals trading and operations teams to establish the Xiangyu Steel Industrial Sub-Group focusing

on “business concentration flat management and agile responsiveness.” Centered on core commodity

segments including iron ore coking coal and steel products the Group has developed an integrated

operating hub combining strategic decision-making efficient execution and continuous innovation.

16Guided by a multi-factor operating model encompassing “Resources Trading Logistics ServicesProcessing and Investment” Xiangyu Steel adheres to capability-driven development. With industrial

research enhancement specialized operations supply chain value-added services and business model

innovation serving as key pillars the Group seeks to unlock deeper profit potential across product

premiums technology premiums service premiums and management premiums along the value chain

thereby building differentiated competitive advantages.Upstream resources: Xiangyu Steel deepened strategic cooperation with overseas mining companies and

established a cross-regional resource allocation mechanism to ensure stability and flexibility in raw

material supply. It is also gradually building a global resource footprint covering iron ore coking coal

nickel and chromium through equity participation and joint ventures. In 2025 iron ore trading volume

exceeded 50 million metric tons up 14% year-on-year.Circulation and trading: Xiangyu Steel continued to advance the globalization of its end-to-end supply

chain layout. Leveraging commodity circulation as a carrier it provides integrated supply chain solutions

including procurement and sales logistics and price management services to upstream and downstream

industrial clients thereby deepening customer relationships enhancing customer stickiness and

reinforcing its industrial chain operating foundation.Logistics: A dedicated international shipping team for the steel supply chain was established. Xiangyu

Steel strengthened strategic cooperation with key ports enhanced its international shipping capabilities

and expanded routes across Southeast Asia the Red Sea the Mediterranean and West Africa effectively

improving logistics connectivity for business expansion.Services: Focusing on key downstream industrial clients Xiangyu Steel enhanced responsiveness and

solution adaptability. It accelerated the development of smart warehousing online trading and data

analytics capabilities driving the transformation toward a smart supply chain service model and further

increasing customer stickiness and value-added services.Integrated manufacturing and trading: Through a combination of asset-light and asset-heavy

operations Xiangyu Steel expanded and replicated steel processing projects accelerated the development

of domestic and international processing bases and enhanced end-market service capabilities through

improved resource allocation and production efficiency thereby expanding profitability.

17Investment: Focusing on upstream resource securing midstream steel mill collaboration and downstream

processing extension Xiangyu Steel systematically advanced industrial chain investments. By

strengthening key node positioning it further unlocked synergies across the industrial chain enhanced

profitability across value chain segments and improved resilience to cyclical fluctuations while

incubating new growth drivers and reinforcing its differentiated competitive advantages.Figure 5: Global Integrated Industrial Chain Operations for the Ferrous Metals Supply Chain

V. Analysis of Core Competitiveness During the Reporting Period

1. Global Channel and Resource Integration Capability

The Company proactively aligns with the ongoing restructuring of global supply chains and has cultivated

a portfolio of high-quality leading customers across industrial chains such as metal minerals agricultural

products energy and chemicals and new energy thereby establishing a mature and stable global business

network. By integrating diversified resources—including industrial information logistics and financial

resources—the Company delivers integrated supply chain solutions to its customers. Leveraging years of

deep industry expertise and well-established channel advantages the Company has developed a globaldevelopment framework characterized by “supply chain leadership logistics support localized operationsand investment-driven growth” and has built strong capabilities in global channel development and

resource integration. In 2025 international business volume exceeded 97 million metric tons with total

18transaction value reaching approximately USD 27.3 billion up 23% year-on-year.

Figure 6: Company’s Global Business Footprints

First global resource channels are well established. The Company has built a diversified international

customer base. On the resource side it covers major global mining assets plantations and trading

enterprises across key mineral and agricultural production regions. On the manufacturing side it serves

both domestic and international industrial clients in the procurement of raw materials and machinery and

equipment. On the distribution side it operates a network covering major consumption markets including

Europe the Middle East and Southeast Asia while actively expanding its presence among medium- and

large-sized enterprises along the Belt and Road further optimizing its global customer portfolio.Second regional ecosystem development is well advanced. In Southeast Asia leveraging resource

endowments and policy-driven industrial relocation and upgrading trends the Company has built full-

process supply chain service systems across industrial chains such as stainless steel aluminum steel and

photovoltaics. In Africa it has established mineral resource supply chains ensuring stable supply of

bauxite and titanium ore from West Africa; its mineral processing plant services in Nigeria achieve over

90% coverage while its lithium resource services support leading new energy enterprises. In Latin

America the Company continues to deepen economic and trade cooperation in minerals agricultural

products and energy.

19Third global capability building continues to progress. The Company is preparing to establish an

International Business Division as a comprehensive platform to advance its globalization strategy

strengthen organizational support and further develop its international capabilities. In 2025 building on

its presence in Hong Kong Singapore Indonesia and Vietnam the Company established 11 overseas

entities in South Africa Brazil Guinea and other locations achieving coverage across major trading time

zones and key markets and enabling end-to-end one-stop services for local customers.

2. Networked Logistics Service Capability

As a nationally recognized 5A-level logistics enterprise the Company leverages its multimodal logistics

capabilities across highway railway waterway and warehousing together with its resource integration

strengths to accelerate the effective coordination between professional logistics and industrial logistics.Anchored in logistics resources driven by service and product upgrading and centered on deep industrial

engagement the Company advances digital and intelligent innovation based on its business flow reservoir

continuously scaling a funnel-shaped end-to-end integrated logistics ecosystem. This enables the

provision of efficient reliable and resilient supply chain logistics solutions to customers worldwide.Figure 7: The Company’s Funnel-Shaped Logistics Ecosystem

First node-line integration to build a comprehensive logistics resource network. The Company

follows a strategic path of “node anchoring – route connection – regional coverage – network formation”

systematically integrating core logistics elements. It has taken the lead in the industry in establishing a

multidimensional logistics network centered on “highway railway waterway and warehousing” hubs

connecting domestic and international markets and strengthening the underlying capabilities of its logistics

20services.

Second resource aggregation to develop a multi-dimensional logistics product ecosystem. The

Company has established benchmark logistics routes such as north-to-south grain transportation west-to-

east coal transportation north-to-south coal transportation and cross-regional circulation of aluminum

products while deploying warehousing services including futures delivery warehouses and bonded

warehouses. It has built core logistics corridors connecting China with Southeast Asia Africa South

America Europe and Central Asia maintaining a leading market share on routes such as Sulawesi

(Indonesia) to China. The Company established partnerships with over 200 high-quality international

logistics providers expanded overseas warehousing nodes to more than 150 locations and operates

overseas warehouses in regions such as Vietnam the United States and the Netherlands to ensure efficient

and reliable supply chain services.Third product portfolio optimization to deliver customized full-chain industrial service solutions.Based on deep deconstruction of core industrial chains the Company provides customized high-quality

full-chain scenario-based logistics solutions building specialized service capabilities across vertical

sectors including agricultural products energy and minerals aluminum new energy and steel. In the

agricultural supply chain while consolidating the “north-to-south grain transportation” corridor the

Company has established a dedicated international soybean shipping project team to develop import

channels. In the energy and minerals supply chain it has set up project teams for mineral shipping and

domestic coal direct transportation facilitating coal imports as well as west-to-east and north-to-south coal

flows. In the aluminum supply chain the Company has developed multiple premium routes across

Shandong Hebei and Xinjiang achieving a leading market share and established a multimodal network

spanning “overseas bauxite – port hubs – central and western smelting – eastern processing” enhancing

localized logistics capabilities in resource countries and enabling two-way full-truck round-trip circulation

between production and consumption markets. In the steel supply chain the Company leverages its project

cargo and breakbulk shipping capabilities to expand international steel logistics deepen domestic north-

to-south steel distribution and establish integrated “processing + warehousing + distribution” service

centers around end-use industries providing customized and resilient logistics solutions for key clients.In the new energy supply chain supported by the integration of logistics and trading the Company has

built an end-to-end international logistics service system with leading market positions in new energy

21mining and construction logistics in Africa and in the handling volume of strategic new energy metals.

Fourth traffic accumulation to drive continuous evolution of service solutions. The Company has

built a large-scale business traffic pool that serves as a sustainable foundation for expanding its funnel-

based logistics ecosystem. At the same time leveraging extensive service cases and data assets

accumulated from diverse business scenarios the Company continuously iterates and optimizes its

logistics service solutions further refining global premium logistics corridors.Figure 8: Company's Nationwide and International Networked Logistics Service Ecosystem

3. Digitalized Supply Chain Service Capability

The Company is committed to becoming a leader in intelligent supply chain services and a leading

practitioner of the industrial internet. Leveraging massive volumes of business data and diverse bulk

commodity application scenarios the Company deeply integrates AI technologies across the entire

business process incubating and deploying an AI product matrix—including intelligent assistants such as

“Yuxiang Tongxue.” Centered on its core platform ecosystem the Company drives deep integration

between technology and business operations comprehensively enhancing capabilities in business

decision-making market value discovery and end-to-end operational management.

22Figure 9: The Company’s Business Data and Capability Infrastructure

The Company continues to strengthen its innovation leadership and resource integration capabilities

advancing its digital-intelligence transformation strategy in depth. With a focus on the development of

vertical large models for the supply chain sector the Company promotes full-lifecycle management and

value realization of data assets across the entire value chain. In this context the YuLianTong platform has

introduced innovative supply chain finance products converting data assets into financing credit and

unlocking the synergistic value of data elements. In 2025 the platform completed core product iterationsand expanded its YuShuRong offering and was selected as a “2025 Digital Xiamen ConstructionAchievement” by the Xiamen Data Administration while also being recognized as a National High and

New Technology Enterprise. The ZhiYun Platform further deepened the application of intelligent

technologies achieving upgrades in areas such as in-transit anomaly early warning AI-based freight

matching models and intelligent dispatching. These advancements have earned multiple industry

recognitions and intellectual property achievements.

23Figure 10: YuLianTong Digital Supply Chain Service System

4. Systematic Risk Management Capability

The Company has always prioritized risk control over profit and scale and has established a

comprehensive full-lifecycle and systematized risk management framework. Risk control is deeply

embedded in all business operations driving a shift from manual risk management toward intelligent

technology-enabled risk control thereby effectively mitigating risks arising from market volatility and

external environmental changes.The Company has established a three-tier risk defense system consisting of frontline business teams

headquarters risk control departments and headquarters audit departments. It has put in place a full-

process risk management mechanism covering pre-emptive system design in-process monitoring of

business execution and post-event review and system optimization underpinned by a dual emphasis on

collaboration and specialization to enable coordinated multi-department risk prevention and control.In addition the Company consistently focuses on highly liquid easily convertible standardized and

storable bulk as its core business portfolio. It enhances risk prevention and control measures from multiple

dimensions including price management market research and customer management while continuously

optimizing customer structure and asset allocation to further strengthen the underlying risk control

foundation.Against the backdrop of an increasingly complex and volatile international trade environment and

intensifying market competition the Company continues to strengthen its policy research analysis and

risk identification and early-warning mechanisms in global markets. It closely monitors changes in

24international policies and regulations and develops targeted response strategies tailored to specific

business conditions.

5. Multidimensional Industry Research Capability

The Company further strengthens the enabling role of its three-tier research system in supporting business

practices by conducting in-depth studies at the macro meso and micro levels focusing on market cycle

dynamics industry development trends and price fluctuation patterns of core commodities. The research

team combines hands-on industry expertise with strong capabilities in the application of financial

instruments and delivers insights across multiple dimensions including frontline operational strategies

business model innovation and corporate development strategy. By aggregating and analyzing internal

and external data the Company forms a more comprehensive perspective on market intelligence and

insights.The Company also optimizes its dual-level investment framework by implementing a tiered and

categorized investment project management system to ensure the effective execution of strategic

investments industrial chain investments and operational investments. Guided by opportunities along

industrial chains and research into emerging strategic sectors the Company continuously identifies

potential investment opportunities. Leveraging industry analysis and commodity price research it

enhances investment evaluation and decision-making driving proactive value creation across the entire

industrial chain cycle improving investment quality and fully translating research outcomes into

investment and operational performance.

6. Specialized Supply Chain Service Team

Talent is the core foundation of the Company’s development. The Company places great emphasis on

talent cultivation and team building and has established a market-oriented professional and

internationally oriented supply chain service team. The team possesses deep industry insight strong

solution design capabilities and efficient global resource integration capabilities enabling it to accurately

understand customer needs and deliver tailored supply chain solutions for clients across different

industries and regions.The Company continues to enhance its international human resources system and adheres to a dual-driven

talent strategy of “external recruitment and internal development”. It actively attracts high-quality

25professionals from both domestic and international markets while building a robust internal training

system and promotion pathways. By providing clear growth channels and development platforms for value

creators together with well-established incentive mechanisms and project support measures the Company

accelerates talent integration and team development.VI. Development Strategy of the Company

1. Strategic Positioning and Operating Model

During the new five-year strategic planning period (2026–2030) the Company will adhere to its

responsibility of “Rooted in the Supply Chain Serving the Industrial Chain Creating the Value Chain”.Focusing on the “Three New and One High” strategic framework the Company will maintain a new

positioning within industrial chains develop new asset management thinking and foster a new multi-

factor operating model. Through organizational capability restructuring the Company aims to drive high-

quality development and strives to become a global pioneer in industrial chain operations driven by supply

chain services.In terms of new positioning within industrial chains the Company will not only provide integrated

supply chain services but will also extend into higher value-added upstream resource segments and

downstream manufacturing and processing activities positioning itself as both a co-builder and organizer

of industrial chains.In terms of new asset management thinking leveraging its industrial insights from supply chain

operations the Company will selectively invest in key nodes and high value-added projects along

industrial chains. It will treat each link of the industrial chain as an asset thereby evolving from trade

spread-based income to diversified profit streams including supply chain service income production-

oriented service income and industrial investment income continuously identifying and capturing value

across industry cycles.In terms of the new multi-factor operating model the Company will systematically develop core

capabilities under an asset management perspective capture market-driven returns and build core

competitiveness distinct from traditional service providers. It will progressively upgrade toward an

integrated “Resources Trading Logistics Services Processing and Investment” industrial chain

operating and investment model achieving full-chain connectivity from resource acquisition to processing

26and circulation and end-market services.

In terms of high-quality development the Company will establish specialized sub-groups and transition

headquarters functions from operational control to strategic management. It will continue to play an

enabling and guiding role across four dimensions—strategic direction setting resource allocation risk

control and value enhancement—thereby driving high-quality corporate development.Over the new strategic planning period as the Company steadily advances its multi-factor operating modelit will develop a diversified profit structure consisting of “industrial chain operating income investmentincome and trading income”.Table 2: The Company’s Profit Model Framework (2026–2030)

Types of Profit DefinitionEnhancing comprehensive returns across all segments of the “Resources Trading LogisticsServices Processing and Investment” industrial chain operating and investment system. The

Industrial Chain Company will extend into higher value-added segments and adopt an asset management

Operating Income mindset to capture returns from resource allocation producer services industrial investment

and global value discovery. This approach further diversifies exposure to commodity cycle

volatility while improving overall profitability and earnings stability.Generating returns through investments in core industrial chain assets thereby enhancing

industrial chain operating income while also capturing investment gains. The Company also

Investment Income

emphasizes counter-cyclical investment opportunities to achieve portfolio value appreciation

amid cyclical shifts in the industry.Leveraging its industrial and research capabilities as well as its global resource networks the

Company analyzes trends in industrial cycles and by effectively utilizing derivative

Trading Income

instruments for risk hedging and price management conducts cross-time and cross-region

trading activities to generate returns.

2. Key Strategic Initiatives and Breakthrough Priorities

To fully implement the “Three New and One High” strategic framework building on its existing

capabilities in platformization digital transformation and globalization the Company will focus on four

key strategic initiatives: strengthening the core foundation building new growth engines deepening

capability development and reshaping organizational effectiveness.Strengthening the core foundation: The Company will focus on core industrial chains promote the

effective coordination between professional logistics and industrial logistics and steadily increase

27operating volume and customer stickiness.

Building new growth engines: The Company will accelerate the establishment of overseas regional

platform entities deepen localized operations and expand international business. At the same time it will

deploy strategic investments in critical mineral resources key industrial chain segments and high-value

projects to cultivate new profit growth drivers.Deepening capability development: By strengthening its integration of production-oriented services as

well as global intelligence market insight and trading capabilities the Company will build a composite

value discovery system across time geography and product dimensions thereby expanding service value-

added and global profitability space.Reshaping organizational effectiveness: The Company will reconstruct a three-tier governance structure

comprising “headquarters – sub-groups – operating entities” and establish a “6+1” industrial sub-group

framework covering steel non-ferrous metals energy new materials new energy agricultural products

and logistics. It will also establish a Resources Division and an International Business Division implement

differentiated and tiered authorization mechanisms and further stimulate organizational vitality at all

levels.Figure 11: The Company’s Strategic Roadmap for the Next Five-Year Period (2026–2030)

VII. Key Operating Plans for 2026

28The year 2026 marks the first year of the Company’s next five-year strategic journey (2026–2030).

Anchored in its positioning as a “co-builder and organizer of industrial chains” the Company will focus

on strategic execution international development resource acquisition operational quality enhancement

and management efficiency improvement working in concert to establish a strong foundation and drive

the Company toward a higher-quality and more sustainable development phase.Strategic execution: First the Company will optimize its closed-loop strategic implementation and

management mechanism and maintain strategic agility and adaptability. Second it will accelerate the

transformation of headquarters governance and the development of industrial sub-groups building an

organizational system aligned with the requirements of the new development phase.International development: First the Company will establish an International Business Division and

implement a “One-country One-policy” precision operation model while building a comprehensive risk

management system covering country risk compliance operations and asset portfolio management.Second it will leverage overseas platforms and focus on key regional markets to enhance overall scale

profitability and brand influence of its international operations.Resource acquisition: The Company will establish a Resources Division and develop a coordinated

mechanism between resources and trading. It will strengthen upstream resource research investment and

post-investment management systems comprehensively enhancing its capabilities in resource acquisition

and operational management.Logistics system development: The Company will accelerate the integration and establishment of a

logistics industry group focusing on core industrial chains to strengthen integrated logistics solution

capabilities. It will explore mechanisms for centralized capacity allocation a unified order management

center and multimodal logistics large-model applications systematically building a distinctive Xiangyu

industrial logistics service system. The Company will further deepen the integration of logistics and

trading and enhance its global competitiveness in industrial chain operations.Operational quality enhancement: First the Company will further strengthen shipbuilding capacity

maintaining its leading position in the 40000–80000 DWT bulk carrier segment while focusing on

breakthroughs in high value-added vessel types such as chemical tankers and actively advancing the first

order of feeder container vessels. Through capacity enhancement and product mix optimization the

29Company will strengthen overall competitiveness. Second guided by an industrial chain approach it will

optimize supply chain layouts and leverage pricing mechanisms option-embedded business models and

YuLianTong to provide more diversified and targeted supply chain solutions thereby enhancing customer

stickiness and service value. Third the Company will build innovation momentum by enhancing the

market competitiveness of YuLianTong and ZhiYun platforms and cultivating new business models such

as new energy power plant development and operation carbon trading and carbon management.Management efficiency improvement: First the Company will strengthen investment and research

support to capture counter-cyclical opportunities in resource allocation. Second it will reinforce risk

management by improving derivatives management mechanisms and enhancing price risk management

systems through diversified hedging tools. Third it will strengthen digital-intelligence enablement by fully

promoting next-generation core ERP systems and advancing AI planning for supply chain operations

thereby improving intelligent and digitalized operational management capabilities.

30